- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
November 30, 1999
Dear Shareholder:
After easing monetary policy three times during the fourth quarter of
1998, the Federal Reserve reversed its trend by raising the Fed funds target
rate 75 basis points (to 5.50%) over the course of 1999 in response to robust
GDP, low unemployment and rising equity prices. U.S. Treasury yields rose
significantly during the past twelve months, with the yield of the 30-year
Treasury rising above 6.00% for the first time since May 1998.
Despite the rise in Treasury yields, continued strong economic growth may
spur the Federal Reserve to proactively fight perceived inflation through
continued monetary policy tightening in 2000. Until the inflation picture
becomes clearer, we expect interest rates to remain largely range-bound.
Accordingly, we will continue to seek the most attractive relative value
opportunities and utilize our proprietary risk management systems to help the
Trust to achieve its investment objectives.
This report contains a summary of market conditions during the annual
period and a review of portfolio strategy by your Trust's managers in addition
to the Trust's audited financial statements and a detailed portfolio list of
the portfolio's holdings. Continued thanks for your confidence in BlackRock. We
appreciate the opportunity to help you achieve your long-term investment goals.
Sincerely,
/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
- ----------------------- ----------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
November 30, 1999
Dear Shareholder:
We are pleased to present the annual report for The BlackRock California
Investment Quality Municipal Trust Inc. ("the Trust") for the fiscal year ended
October 31, 1999. We would like to take this opportunity to review the Trust's
stock price and net asset value (NAV) performance, summarize market
developments and discuss recent portfolio management activity.
The Trust is a non-diversified, actively managed closed-end bond fund
whose shares are traded on the American Stock Exchange under the symbol "RAA".
The Trust's investment objective is to provide high current income that is
exempt from regular federal and California income taxes consistent with the
preservation of capital. The Trust seeks to achieve this objective by investing
in investment grade (rated "AAA" to "BBB" by a major rating agency or of
equivalent quality) municipal debt securities issued by local municipalities
throughout California.
The table below summarizes the changes in the Trust's stock price and NAV
over the past twelve months:
<TABLE>
<CAPTION>
------------------------------------------------------------
10/31/99 10/31/98 CHANGE HIGH LOW
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
STOCK PRICE $ 15.50 $ 16.125 (3.88)% $ 16.75 $ 14.625
----------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $ 14.34 $ 15.49 (7.42)% $ 15.52 $ 14.27
----------------------------------------------------------------------------------
</TABLE>
THE FIXED INCOME MARKETS
The U.S. economy sustained its growth during the past twelve months, as
U.S. exports and manufacturing continued to rebound. Additionally, consumer
strength remains an important contributor to economic growth as low
unemployment and rising incomes fuel domestic demand. After lowering interest
rates three times in the second half of 1998, and despite inflation concerns as
measured by CPI and PPI remaining relatively benign, the Federal Reserve
adopted a tightening bias and raised its target for the Federal funds rate from
4.75% to 5.50% between June and November 1999. In a statement accompanying the
latest tightening on November 16, it was indicated that the Fed believes that
growth "continues in excess of the economy's growth potential"; nevertheless,
the Fed reversed their tightening stance by adopting a neutral bias.
After a brief rally in late 1998, Treasury yields rose dramatically during
1999. Over the period, the yield of the 30-year Treasury increased by 100 basis
points, closing at 6.16% on October 31. Bond prices, which move inversely to
their yields, were punished by the constant threat of inflation in response to
the strong economic data and the market's uncertainty over the Fed's policy
throughout the year. Recently, a weaker dollar, higher commodity prices and
strong gains in the U.S. and European equity markets have depressed overall
demand for fixed income securities.
Municipals underperformed the taxable market during the period, posting a
- -1.78% total return as measured by the LEHMAN MUNICIPAL BOND INDEX versus the
LEHMAN AGGREGATE'S 0.53%. For much of the period, intermediate maturity
securities outperformed longer maturity municipal securities. As interest rates
rose to their highest level in four years during the third quarter of 1999,
retail demand for municipal securities has increased dramatically. This rise in
municipal interest rates is directly related to the increase of alternative
taxable investment spreads over Treasuries. Currently municipals are
substantially cheaper than their long-term average valuations as compared to
Treasuries. Unlike the taxable market, which has witnessed a surge of supply by
issuers trying to avoid potential year end market dislocations due to Y2K, the
volume of new municipal issuance is down significantly from 1998's pace,
creating a positive technical environment. We believe that the current market
environment offers some of the most attractive investment opportunities in
municipals in the last few years.
Standard & Poor's raised California's general obligation rating in August
to AA- from A+, citing the continued economic expansion and improved fiscal and
budgetary performance. Payroll employment grew for the 40th consecutive month
with September results setting a new record high at 14 million non-farm
employees. On a year-over-year basis, non-farm employment grew 2.8% in spite of
the slow but steady decline in manufacturing, primarily in the aerospace
sector. Unemployment dropped to 4.9% in September, the State's lowest rate ever
since recording began in January 1970 and only
2
<PAGE>
0.7% above the national average. The State's fiscal 2000 budget is based upon
conservative assumptions providing some flexibility. Overall revenue
collections through October were greater than anticipated, providing the State
with an improved liquidity position which should allow the State to weather
potential future volatility in the economically sensitive revenue stream.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
In seeking to achieve its investment objectives, the Trust's portfolio is
actively managed to diversify exposure to various sectors, issuers, revenue
sources and security types. BlackRock's investment strategy emphasizes a
relative value approach, which allows the Trust to capitalize upon changing
market conditions by rotating municipal sectors, credits and coupons.
Additionally, the Trust employs leverage via auction rate preferred stock
to enhance its income by borrowing at short-term municipal rates and investing
the proceeds in longer maturity issues that have higher yields. The degree to
which the Trust can benefit from its use of leverage may affect its ability to
pay high monthly income. While the amount of preferred shares outstanding has
remained constant, the percentage of leverage utilized by the Trust fluctuates
modestly as the net asset value moves. Over the period, the Trust's borrowing
costs continue to be profitable.
During the period, the Trust sought to take advantage of tight municipal
credit spreads to improve its overall credit profile. Specifically, the Trust
emphasized higher rated securities over lower rated securities. Additionally,
the Trust maintained a defensive coupon structure, which was achieved by adding
premium coupons, which positively contributed to the Trust's total returns as
interest rates rose during the period.
The following charts compare the Trust's current and October 31, 1998
asset composition and credit quality allocations:
- -------------------------------------------------------------
SECTOR BREAKDOWN
- -------------------------------------------------------------
SECTOR OCTOBER 31, 1999 OCTOBER 31, 1998
- -------------------------------------------------------------
Transportation 20% 20%
- -------------------------------------------------------------
Lease 17% 15%
- -------------------------------------------------------------
University 15% 15%
- -------------------------------------------------------------
District 10% 10%
- -------------------------------------------------------------
Power 9% 10%
- -------------------------------------------------------------
Housing 9% 9%
- -------------------------------------------------------------
Industrial 5% 6%
- -------------------------------------------------------------
Water & Sewer 5% 6%
- -------------------------------------------------------------
City, County & State 5% 5%
- -------------------------------------------------------------
Student Loans 5% 4%
- -------------------------------------------------------------
CREDIT RATING* OCTOBER 31, 1999 OCTOBER 31, 1998
- -------------------------------------------------------------
AAA/Aaa 46% 49%
- -------------------------------------------------------------
AA/Aa 24% 20%
- -------------------------------------------------------------
A/A 20% 21%
- -------------------------------------------------------------
BBB/Baa 10% 10%
- -------------------------------------------------------------
- ----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
3
<PAGE>
We look forward to continuing to manage the Trust to benefit from the
opportunities available to investors in the investment grade municipal market.
We thank you for your investment and continued interest in The BlackRock
California Investment Quality Municipal Trust Inc. Please feel free to call our
marketing center at (800) 227-7BFM (7236) if you have any specific questions
which were not addressed in this report.
Sincerely,
/s/ Robert Kapito /s/ Kevin Klingert
- ----------------------------------- ---------------------------------------
Robert Kapito Kevin Klingert
Vice Chairman and Portfolio Manager Managing Director and 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 10/31/99 $ 15.50
-----------------------------------------------------------------------
Net Asset Value as of 10/31/99: $ 14.34
-----------------------------------------------------------------------
Yield on Closing Stock Price as of 10/31/99 ($15.50)1: 5.66%
-----------------------------------------------------------------------
Current Monthly Distribution per Share2: $ 0.073125
-----------------------------------------------------------------------
Current Annualized Distribution per Share2: $ 0.877500
-----------------------------------------------------------------------
1 Yield on Closing Stock Price is calculated by dividing the current annualized
distribution per share by the closing stock price per share.
2 The distribution is not constant and is subject to change.
4
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
============= ========= =========================================================================== ================ ==============
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS-145.1%
California Educational Fac. Auth. Rev.,
AAA $ 760++ Santa Clara Univ., 5.00%, 9/01/06 ........................................ N/A $ 787,823
AAA 240 Santa Clara Univ., 5.00%, 9/01/15, MBIA .................................. No Opt. Call 221,609
AAA 1,000 Student Loan Prog., Ser. A, 6.00%, 3/01/16, MBIA ......................... 3/07 at 102 1,004,320
California St. G.O.,
AA- 960++ 5.75%, 3/01/05 ........................................................... N/A 1,022,851
AA- 40 5.75%, 3/01/19 ........................................................... 3/05 at 101 39,624
California St. Hsg. Fin. Agcy. Rev., Home Mtge.,
AA- 815 Ser. B-1, 6.45%, 2/01/11 ................................................. 8/04 at 102 833,419
AA- 1,000 Ser. G, 7.20%, 8/01/14 ................................................... 8/04 at 102 1,043,970
California St. Pub. Wks. Brd. Lease Rev.,
A+ 1,000++ Dept. of Corrections., Ser. A, 6.875%, 11/01/04 .......................... N/A 1,125,020
A 1,000 St. Univ. Proj., Ser. A, 6.10%, 10/01/06 .................................. 10/04 at 102 1,072,190
AAA 1,000++ St. Univ. Proj., Ser. A, 6.40%, 12/01/02, AMBAC ........................... N/A 1,081,360
BBB- 1,385 Foothill / Eastern. Trans. Agcy., Ser. A, Zero Coupon, 1/01/04 ............ No Opt. Call 1,135,188
Los Angeles Cnty.,
AAA 1,000++ Met. Trans. Auth., Sales Tax Rev., 6.00%, 7/01/06, MBIA .................. N/A 1,085,660
AAA 1,000 Special Tax, Ser. A, 5.50%, 9/01/14, FSA ................................. 9/07 at 102 994,660
AA 1,150 Los Angeles Harbor Dept. Rev., Ser. B, 6.00%, 8/01/13 ..................... 8/06 at 101 1,185,523
AA 1,000++ Los Angeles Pub. Wks. Fin. Auth. Rev., Regl. Park & Open Space, Dist. A,
6.00%, 10/01/04 ........................................................... N/A 1,082,850
BBB- 1,000 Sacramento Pwr. Auth., Cogeneration Proj. Rev., 6.50%, 7/01/09 ............ 7/06 at 102 1,062,580
AAA 500 San Diego Ind. Dev. Rev., Ser. A, 5.90%, 6/01/18, AMBAC ................... 6/03 at 102 502,175
San Francisco City & Cnty.,
AAA 1,000 Arpt. Comn. Rev., Intl. Arpt., Ser. 6, 6.125%, 5/01/09, AMBAC ............ 5/04 at 102 1,054,810
AAA 1,000 Sewer Rev., Ser. A, 5.95%, 10/01/25, FGIC ................................ 10/03 at 102 1,001,650
AAA 1,000 Southern California Pub. Pwr. Auth. Transmission Proj. Rev.,
5.50%, 7/01/20, MBIA ...................................................... 7/02 at 100 958,170
Univ. of California Rev.,
A+ 1,135 Ser. B, 6.30%, 9/01/03 ................................................... N/A 1,233,961
AAA 1,000++ Ser. D, 6.10%, 9/01/02, MBIA ............................................. N/A 1,068,710
AAA 370 West Basin Municipal Water Dist. Rev. C.O.P., Ser. A, 5.50%, 8/01/22, AMBAC 8/07 at 101 352,436
------------
TOTAL LONG-TERM INVESTMENTS (COST $19,667,000) ............................ 20,950,559
------------
SHORT-TERM INVESTMENTS**-5.5%
A-1+ 800 Irvine California Impvt., 3.50%, 11/01/99, FRDD (cost $800,000) ........... N/A 800,000
------------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
============= ========== ============================================================ ================ ==============
<S> <C> <C> <C> <C>
TOTAL INVESTMENTS-150.6% (COST $20,467,000) ................ $ 21,750,559
Other assets in excess of liabilities-1.3% ................. 188,298
Liquidation value of preferred stock-(51.9)% ............... (7,500,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS-100% .......... $ 14,438,857
============
</TABLE>
- --------
* 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.
++ This bond is prerefunded. See Glossary for definitions.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:
<S> <C>
AMBAC - American Municipal Bond Assurance Corporation FSA - Financial Security Assurance
C.O.P. - Certificate of Participation G.O. - General Obligation Bond
FGIC - Financial Guaranty Insurance Company MBIA - Municipal Bond Insurance Association
FRDD - Floating Rate Daily Demand
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
- ----------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
- ----------------------------------------------------------------------
ASSETS
Investments, at value (cost $20,467,000) (Note 1) ..... $21,750,559
Interest receivable ................................... 293,640
-----------
22,044,199
-----------
LIABILITIES
Due to custodian ...................................... 63,755
Advisory fee payable (Note 2) ......................... 6,560
Dividends payable-preferred stock ..................... 2,424
Administration fee payable (Note 2) ................... 1,874
Other accrued expenses ................................ 30,729
-----------
105,342
-----------
NET INVESTMENT ASSETS ................................. $21,938,857
===========
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 .................. 24,429
Accumulated net realized loss ........................ (776,305)
Net unrealized appreciation .......................... 1,283,559
-----------
Net investment assets, October 31, 1999 ............... $21,938,857
===========
Net assets applicable to common shareholders .......... $14,438,857
===========
Net asset value per share:
($14,438,857 \d 1,007,093 shares of common
stock issued and outstanding) ....................... $ 14.34
===========
- ----------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
- ----------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned ......... $1,257,735
----------
Expenses
Investment advisory .................. 80,508
Reports to shareholders .............. 31,000
Administration ....................... 23,000
Auction agent ........................ 19,000
Directors ............................ 14,000
Transfer agent ....................... 9,500
Audit ................................ 7,000
Legal ................................ 5,000
Custodian ............................ 3,000
Miscellaneous ........................ 11,226
----------
Total expenses ....................... 203,234
----------
Net investment income ................... 1,054,501
----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3)
Realized gain on investments ............ 42,400
Net change in unrealized appreciation on
investments ............................ (1,146,734)
----------
Net loss on investments ................. (1,104,334)
----------
NET DECREASE IN NET INVESTMENT ASSETS
RESULTING FROM OPERATIONS ............... $ (49,833)
===========
See Notes to Financial Statements.
7
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
---------------------------------
1999 1998
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN INVESTMENT ASSETS
OPERATIONS:
Net investment income ..................................................... $ 1,054,501 $ 1,058,329
Net realized gain on investments .......................................... 42,400 -
Net change in unrealized appreciation on investments ...................... (1,146,734) 791,797
------------ ------------
Net increase (decrease) in net investment assets resulting from operations (49,833) 1,850,126
DIVIDENDS:
To common shareholders from net investment income ......................... (883,630) (883,641)
To preferred shareholders from net investment income ...................... (222,879) (244,760)
------------ ------------
Total dividends ........................................................... (1,106,509) (1,128,401)
------------ ------------
Total increase (decrease) ................................................ (1,156,342) 721,725
NET INVESTMENT ASSETS
Beginning of year .......................................................... 23,095,199 22,373,474
------------ ------------
End of year ................................................................ $ 21,938,857 $ 23,095,199
============ ============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ------------ ----------- --------------
<S> <C> <C> <C> <C> <C>
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ................................ $ 15.49 $ 14.77 $ 14.20 $ 13.85 $ 11.74
------- -------- -------- ------- ---------
Net investment income ............................................ 1.05 1.05 1.07 1.08 1.05
Net realized and unrealized gain (loss) on investments ........... ( 1.10) .79 .61 .33 2.12
------- -------- -------- ------- ---------
Net increase (decrease) from investment operations ................ ( 0.05) 1.84 1.68 1.41 3.17
------- -------- -------- ------- ---------
Dividends and Distributions:
Dividends from net investment income to:
Common shareholders ............................................ ( .88) ( .88) ( .87) ( .80) ( .79)
Preferred shareholders ......................................... ( .22) ( .24) ( .24) ( .25) ( .27)
Distributions in excess of net realized gains
on investments to:
Common shareholders ............................................. - - ** ( .01) -
Preferred shareholders .......................................... - - ** ** -
------- --------- -------- -------- ----------
Total dividends and distributions ................................ ( 1.10) ( 1.12) ( 1.11) ( 1.06) ( 1.06)
------- --------- -------- ------- ----------
Net asset value, end of year* ..................................... $ 14.34 $ 15.49 $ 14.77 $ 14.20 $ 13.85
======= ========= ======== ======= ==========
Per share market value, end of year* .............................. $ 15.50 $ 16.125 $ 15.00 $ 13.50 $ 12.625
======= ========= ======== ======= ==========
TOTAL INVESTMENT RETURN+: ........................................ 1.52% 13.70% 17.98% 13.80% 26.86%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS:
Expenses++ . ...................................................... 1.34% 1.36% 1.32% 1.42% 1.52%
Net investment income before preferred stock dividends++.. ........ 6.95% 6.93% 7.48% 7.78% 8.24%
Preferred stock dividends ......................................... 1.47% 1.60% 1.70% 1.82% 2.09%
Net investment income available to common shareholders ............ 5.48% 5.33% 5.78% 5.96% 6.15%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) .......... $15,170 $ 15,265 $ 14,445 $ 13,996 $ 12,892
Portfolio turnover rate ........................................... 4% 0% 28% 72% 149%
Net assets of common shareholders, end of year (in thousands) ..... $14,439 $ 15,595 $ 14,873 $ 14,296 $ 13,946
Asset coverage per share of preferred stock, end of year .......... $73,138 $ 76,990 $ 74,583 $ 72,654 $ 71,485
Preferred stock outstanding (in thousands) ........................ $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500
</TABLE>
- ----------
* Net asset value and market value are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL each Monday.
** Actual amount paid for the year ended October 31, 1997 to common
shareholders was $0.00056 per share and to preferred shareholders was
$0.00018 per common share. Actual amount paid to preferred shareholders for
the year ended October 31, 1996 was $0.0048 per common share.
+ Total investment return is calculated assuming a purchase of common stock at
the current market value on the first day and a sale at the current market
price on the last day of each year 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.
++ Ratios are calculated on the basis of income and expenses applicable to both
the common and preferred shares relative to the average net assets of common
shareholders.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratio to average
net assets and other supplemental data for the years indicated. This
information has been determined based upon financial information provided in
the financial statements and market value data for the Trust's common stock.
See Notes to Financial Statements.
9
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION & ACCOUNTING POLICIES
The BlackRock California Investment Quality Municipal Trust Inc. (the
"Trust") was organized in Maryland on April 12, 1993 as a non-diversified
closed-end management investment company. The Trust's investment objective is to
manage a portfolio of investment quality securities while providing high current
income exempt from regular federal and California state income taxes consistent
with the preservation of capital. The ability of issuers of debt securities held
by the Trust to meet their obligations may be affected by economic developments
in the state, a specific industry or region. No assurance can be given that the
Trust's investment objective will be achieved.
The following is a summary of significant accounting policies followed by
the Trust.
SECURITIES VALUATION: Municipal securities (including commitments to purchase
such securities on a "when-issued" basis) are valued on the basis of prices
provided by dealers or pricing services approved by the Trust's Board of
Directors. In determining the value of a particular security, pricing services
may use certain information with respect to transactions in such securities,
quotations from bond dealers, market transactions in comparable securities and
various relationships between securities 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 60 days or less are valued at
amortized cost, if their term to maturity from date of purchase is 60 days or
less. Short-term securities with a term to maturity greater than 60 days from
date of purchase are valued at current market quotation until maturity or
disposition.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust accretes original issue discount or amortizes
premium on securities purchased using the interest method.
FEDERAL INCOME TAXES: 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.
ESTIMATES: The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
NOTE 2. AGREEMENTS
The Trust has an Investment Advisory Agreement with BlackRock Financial
Management, Inc., (the "Adviser"), a wholly-owned subsidiary of BlackRock
Advisors, Inc., which is a wholly-owned subsidiary of BlackRock, Inc., which in
turn is an indirect majority-owned subsidiary of PNC Bank Corp. The Trust has an
Administration Agreement with Prudential Investments Fund Management LLC
("PIFM"), a 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 PIFM is also computed weekly and payable
monthly at an annual rate of 0.10% of the Trust's average weekly net investment
assets.
Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. PIFM pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses.
10
<PAGE>
NOTE 3. PORTFOLIO SECURITIES
Purchase and sales of investment securities, other than short-term
investments, for the year ended October 31, 1999 aggregated $931,113 and
$1,563,613, respectively.
The federal income tax basis of the Trust's investments at October 31, 1999
was substantially the same as the basis for financial reporting purposes and,
accordingly, net and gross unrealized appreciation was $1,283,559.
For federal income tax purposes, the Trust had a capital loss carryforward
at October 31, 1999 of approximately $773,000 which will expire in 2002.
Accordingly, no capital gain distribution is expected to be paid to shareholders
until net gains have been realized in excess of such amount.
NOTE 4. CAPITAL
There are 200 million shares of $.01 par value common stock authorized. Of
the 1,007,093 shares outstanding at October 31, 1999, the Adviser owned 7,093
shares. As of October 31, 1999 there were 300 shares of Preferred Stock Series
W7 outstanding.
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.
Dividends on Series W7 are cumulative at a rate which is reset every 7 days
based on the results of an auction. Dividend rates ranged from 2.75% to 3.375%
during the year ended October 31, 1999.
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%.
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, 1999, the Board of Directors of the Trust
declared a dividend from undistributed earnings of $.073125 per common share
payable December 1, 1999 to shareholders of record on November 15, 1999.
For the period November 1, 1999 to November 30, 1999, dividends declared on
Preferred Stock totalled $20,118 in aggregate for the outstanding Preferred
Stock.
11
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
REPORT OF INDEPENDENT AUDITORS
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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, 1999 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 each of the five years in the period then ended. These financial statements
and financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with 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, 1999, by correspondence with the custodian and brokers. 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, 1999, 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.
/s/ Deloitte & Touche LLP
- -------------------------------
Deloitte & Touche LLP
New York, New York
December 13, 1999
12
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
TAX INFORMATION
- --------------------------------------------------------------------------------
We are required by the Internal Revenue Code to advise you within 60 days
of the Trust's fiscal year end (October 31, 1999) as to the federal tax status
of dividends you received during such fiscal year. Accordingly, during the year
the Trust paid Federal tax-exempt dividends of $0.8775 per share to common
shareholders and $742.93 per share to preferred shareholders.
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DIVIDEND REINVESTMENT PLAN
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Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders are automatically enrolled to have all distributions of dividends
and capital gains reinvested by State Street Bank and Trust Company (the "Plan
Agent") in Trust shares pursuant to the Plan. Shareholders who elect not to
participate in the Plan will receive all distributions in cash paid by check in
United States dollars mailed directly to the shareholders of record (or if the
shares are held in street or other nominee name, then to the nominee) by the
transfer agent, as dividend disbursing agent.
The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the American
Stock Exchange or elsewhere, for the participants' accounts. The Trust will not
issue any new shares 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 will be made for any fraction of a Trust share.
The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income taxes that
may be payable on such dividends or distributions.
The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The addresses are on the front of this report.
13
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
ADDITIONAL INFORMATION
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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.
YEAR 2000 READINESS DISCLOSURE. The Trust has evaluated its information
technology infrastructure for Year 2000 compliance. Substantially all of the
Trust's information systems are supplied by the Adviser. The Adviser has advised
the Trust that it has evaluated whether such systems are year 2000 compliant and
that it expects to incur costs of up to approximately one million dollars to
complete such evaluation and to make any modifications to its systems as may be
necessary to achieve Year 2000 compliance. The Adviser advised the Trust that it
has fully tested its systems for Year 2000 compliance. The Trust may be required
to bear a portion of such cost incurred by the Adviser in this regard. The
Adviser has advised the Trust that it does not anticipate any material
disruption in the operations of the Trust as a result of any failure by the
Adviser to achieve Year 2000 compliance. There can be no assurance that the
costs will not exceed the amount referred to above or that the Trust will not
experience a disruption in operations.
The Adviser has advised the Trust that it is continuing to evaluate the
Year 2000 compliance of various suppliers of the Adviser and the Trust. The
Adviser advised the Trust that it has communicated with such suppliers to
determine their Year 2000 compliance status and the extent to which the Adviser
or the Trust could be affected by any supplier's Year 2000 compliance issues. To
date, the Adviser received responses from substantially all such suppliers with
respect to their Year 2000 compliance. However, there can be no assurance that
the systems of such suppliers, who are beyond the Trust's control, will be Year
2000 compliant. In the event that any of the Trust's significant suppliers do
not successfully and timely achieve Year 2000 compliance, the Trust's business
or operations could be adversely affected. The Adviser advised the Trust that it
has prepared a contingency plan for Year 2000 compliance by its suppliers. There
can be no assurance that such contingency plan will be successful in preventing
a disruption of the Trust's operations.
The Trust is designating this disclosure as its Year 2000 readiness
disclosure for all purposes under the Year 2000 Information and Readiness
Disclosure Act and the foregoing information shall constitute a Year 2000
Readiness Statement for purposes of that Act.
14
<PAGE>
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
INVESTMENT SUMMARY
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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") is an SEC-registered
investment adviser. As of September 30, 1999, BlackRock and its affiliates
managed over $148 billion on behalf of taxable and tax-exempt clients worldwide.
Strategies include fixed income, equity and cash and may incorporate both
domestic and international securities. Domestic fixed income strategies utilize
the government, mortgage, corporate and municipal bond sectors. BlackRock
manages twenty-three closed-end funds that are traded on either the New York or
American stock exchanges, and a $24 billion family of equity and bond funds.
BlackRock manages over 487 accounts, domiciled in the United States and
overseas.
WHAT CAN THE TRUST INVEST IN?
Under normal conditions, the Trust expects to continue to manage its assets so
that at least 80% of its investments are rated at least investment grade ("BBB"
by Standard & Poor's or "Baa" by Moody's Investor Services) and up to 20% of its
assets may instead be deemed to be of equivalent credit quality by the 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 or other qualifying
issuers. 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 first 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, State Street
Bank and Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.
15
<PAGE>
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 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
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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 WALL STREET
JOURNAL on Monday.
PREMIUM: When a fund's stock price is greater than its net asset
value, the fund is said to be trading at a premium.
PREREFUNDED BONDS: These securities are collateralized by U.S. Government
securities which are held in escrow and are used to pay
principal and interest on the tax exempt issue and
retire the bond in full at the date indicated,
typically at a premium to par.
17
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BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------
TAXABLE TRUSTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK MATURITY
SYMBOL DATE
PERPETUAL TRUSTS --------- ---------
<S> <C> <C>
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A
TERM TRUSTS
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BTM 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
</TABLE>
TAX-EXEMPT TRUSTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK MATURITY
SYMBOL DATE
PERPETUAL TRUSTS --------- ---------
<S> <C> <C>
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
The BlackRock Pennsylvania Strategic Municipal Trust BPS N/A
The BlackRock Strategic Municipal Trust BSD N/A
TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
</TABLE>
IF YOU WOULD LIKE FURTHER INFORMATION PLEASE DO NOT HESITATE TO CALL BLACKROCK
AT (800) 227-7BFM (7236)OR CONSULT WITH YOUR FINANCIAL ADVISOR.
18
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BLACKROCK FINANCIAL MANAGEMENT, INC.
AN OVERVIEW
- --------------------------------------------------------------------------------
BlackRock Financial Management, Inc. ("BlackRock") is an SEC-registered
investment adviser. As of September 30, 1999, BlackRock and its affiliates
managed over $148 billion on behalf of taxable and tax-exempt clients worldwide.
Strategies include fixed income, equity and cash and may incorporate both
domestic and international securities. BlackRock manages twenty-three closed-end
funds that are traded on either the New York or American stock exchanges, and a
$24 billion family of open-end equity and bond funds. BlackRock manages over 487
accounts, domiciled in the United States and overseas.
BlackRock's fixed income product was introduced in 1988 by a team of highly
seasoned fixed income professionals. These professionals had extensive
experience creating, analyzing and trading a variety of fixed income
instruments, including the most complex structured securities. In fact, several
individuals at BlackRock were responsible for developing many of the major
innovations in the mortgage-backed and asset-backed securities markets,
including the creation of the first CMO, the floating rate CMO, the
senior/subordinated pass-through and the multi-class asset-backed security.
BlackRock is unique among asset management and advisory firms in the
emphasis it places on the development of proprietary analytical capabilities.
Over one quarter of the firm's professionals is dedicated to the design,
maintenance and use of these systems, which are not otherwise available to
investors. BlackRock's proprietary analytical tools are used for evaluating, and
designing fixed income investment strategies for client portfolios. Securities
purchased include mortgages, corporate bonds, municipal bonds and a variety of
hedging instruments.
BlackRock has developed investment products that respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. In fact, BlackRock introduced the first closed-end mortgage fund, the
first taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
Currently, BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide ongoing demand for the stock in the secondary market.
BlackRock manages a wide range of investment vehicles, each having specific
investment objectives and policies.
In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
that you may have about your BlackRock funds and we thank you for the continued
trust that you place in our abilities.
IF YOU WOULD LIKE FURTHER INFORMATION
PLEASE DO NOT HESITATE TO CALL BLACKROCK AT (800) 227-7BFM
19
<PAGE>
BLACKROCK
DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein
OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY
INVESTMENT ADVISER
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM
ADMINISTRATOR
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM
AUCTION AGENT
Deutsche Bank
4 Albany Street
New York, NY 10006
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
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 Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 227-7BFM
Printed on recycled paper 09247U-10-7
09247F-10-0
BLACKROCK
THE
CALIFORNIA
INVESTMENT QUALITY
MUNICIPAL TRUST INC.
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ANNUAL REPORT
OCTOBER 31, 1999
[GRAPHIC OMITTED]
