Regulatory Filings • Dec 21, 2018
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Download Source FileN-Q 1 d598135dnq.htm BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST BlackRock California Municipal Income Trust
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-10331
Name of Fund: BlackRock California Municipal Income Trust (BFZ)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock California Municipal Income Trust, 55 East 52 nd Street, New York, NY 10055
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2019
Date of reporting period: 10/31/2018
Item 1 Schedule of Investments
Schedule of Investments (unaudited) October 31, 2018 BlackRock California Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets)
| Security | Par (000) | Value |
|---|---|---|
| Municipal Bonds 97.4% | ||
| California 95.7% | ||
| County/City/Special District/School District 24.1% | ||
| Butte-Glenn Community College District, GO, Election of 2002, Series C, 5.50%, 08/01/19 (a) | $ 6,350 | $ 6,530,149 |
| City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation | ||
| Project: | ||
| 6.13%, 05/01/31 | 500 | 545,265 |
| 6.50%, 05/01/36 | 1,210 | 1,330,480 |
| 6.50%, 05/01/42 | 2,225 | 2,446,543 |
| County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 02/01/19 (a) | 2,000 | 2,021,500 |
| County of Los Angeles Metropolitan Transportation Authority, Refunding RB, Series A, | ||
| 5.00%, 07/01/38 | 4,815 | 5,458,284 |
| County of Riverside California Public Financing Authority, RB, Capital Facilities Project, | ||
| 5.25%, 11/01/45 | 8,990 | 10,161,217 |
| County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, | ||
| Series A, 6.00%, 03/01/21 (a) | 2,880 | 3,146,458 |
| Evergreen Elementary School District, GO, Election of 2006, Series B (AGC), | ||
| 5.13%, 08/01/33 | 2,500 | 2,555,875 |
| Los Angeles California Unified School District, GO, Election of 2008, Series B-1, 5.25%, 07/01/42 | 12,500 | 14,349,500 |
| Modesto Irrigation District, COP, Capital Improvements, Series A, 5.75%, 10/01/29 | 3,035 | 3,080,707 |
| Oak Grove School District, GO, Election of 2008, Series A, 5.50%, 08/01/33 | 1,315 | 1,349,519 |
| Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District: | ||
| 5.00%, 10/01/36 | 2,000 | 2,235,060 |
| 5.00%, 10/01/41 | 8,000 | 8,834,640 |
| San Jose California Financing Authority, Refunding LRB, Civic Center Project, Series A, | ||
| 5.00%, 06/01/32 | 3,375 | 3,702,712 |
| San Leandro California Unified School District, GO, Election of 2010, Series A, | ||
| 5.75%, 08/01/41 | 3,060 | 3,322,334 |
| Santa Clarita Public Finance Authority, RB, Streetlights Acquisition And Retrofit Program, Series A, | ||
| 5.00%, 09/01/43 | 3,205 | 3,554,473 |
| Security | Par (000) | Value |
|---|---|---|
| County/City/Special District/School District (continued) | ||
| Santa Monica Public Financing Authority, RB, Downtown Fire Station Project, 5.00%, 07/01/42 | $ 1,250 | $ 1,402,938 |
| State of California, GO, Refunding Various Purposes: | ||
| 5.00%, 08/01/37 | 15,000 | 17,002,950 |
| 5.00%, 08/01/46 | 2,500 | 2,768,500 |
| Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 08/01/19 (a) | 4,000 | 4,128,280 |
| Tracy Community Facilities District, Special Tax Bonds, Series 1: | ||
| 5.00%, 09/01/38 | 335 | 355,552 |
| 5.00%, 09/01/43 | 515 | 544,046 |
| 5.00%, 09/01/48 | 570 | 599,811 |
| Tustin California School District, GO, Election of 2008, Series B, 5.25%, 08/01/21 (a) | 3,445 | 3,751,433 |
| Washington Township Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/38 | 1,625 | 1,852,646 |
| West Contra Costa California Unified School District, GO, Election of 2012, Series A, | ||
| 5.50%, 08/01/39 | 2,500 | 2,816,950 |
| 109,847,822 | ||
| Education 8.4% | ||
| California Educational Facilities Authority, Refunding RB, San Francisco University: | ||
| 6.13%, 10/01/21 (a) | 3,075 | 3,429,455 |
| 6.13%, 10/01/36 | 3,205 | 3,548,512 |
| California Municipal Finance Authority, RB, Emerson College, 5.75%, 01/01/22 (a) | 2,500 | 2,782,700 |
| California Municipal Finance Authority, Refunding RB, Emerson College, Series B: | ||
| 5.00%, 01/01/34 | 695 | 762,943 |
| 5.00%, 01/01/36 | 750 | 816,638 |
| 5.00%, 01/01/37 | 630 | 684,451 |
| 5.00%, 01/01/42 | 1,000 | 1,077,630 |
| California State University, Refunding RB, Systemwide, Series A, 5.00%, 11/01/33 | 5,640 | 6,380,194 |
| University of California, Refunding RB: | ||
| General, Series AZ, 5.00%, 05/15/43 | 5,800 | 6,495,188 |
| Limited Project, Series O, 5.00%, 05/15/40 | 6,600 | 7,379,724 |
1
Schedule of Investments (unaudited) (continued) October 31, 2018 BlackRock California Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets)
| Security | Par (000) | Value |
|---|---|---|
| Education (continued) | ||
| University of California, Refunding RB (continued): | ||
| Series AR, 5.00%, 05/15/38 | $ 4,250 | $ 4,707,597 |
| 38,065,032 | ||
| Health 13.5% | ||
| ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series B, | ||
| 6.25%, 08/01/19 (a) | 4,975 | 5,141,812 |
| California Health Facilities Financing Authority, RB: | ||
| Adventist Health System West, Series A, 5.75%, 09/01/19 (a) | 6,710 | 6,928,478 |
| Cedars Sinai Medical Center, Series A, 5.00%, 08/15/34 | 5,475 | 6,165,288 |
| Childrens Hospital, Series A, 5.25%, 11/01/41 | 8,500 | 9,204,225 |
| Sutter Health, Series A, 5.00%, 11/15/36 | 1,000 | 1,126,890 |
| Sutter Health, Series B, | ||
| 6.00%, 08/15/20 (a) | 6,015 | 6,450,306 |
| California Health Facilities Financing Authority, Refunding RB, Series A: | ||
| Catholic Healthcare West, | ||
| 6.00%, 07/01/19 (a) | 5,550 | 5,707,120 |
| Dignity Health, 6.00%, 07/01/19 (a) | 4,520 | 4,647,961 |
| Sutter Health, 5.00%, 11/15/37 | 2,000 | 2,243,840 |
| California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, | ||
| 5.50%, 12/01/58 (b) | 930 | 975,849 |
| California Statewide Communities Development Authority, Refunding RB, Trinity Health Credit Group Composite | ||
| Issue, 5.00%, 12/01/41 | 4,000 | 4,319,360 |
| State of California Public Works Board, Refunding RB, Various Capital Projects, Series C, | ||
| 5.00%, 11/01/34 | 7,750 | 8,721,617 |
| 61,632,746 | ||
| State 9.3% | ||
| State of California, GO, Refunding, Various Purposes, 5.00%, 11/01/37 | 4,690 | 5,294,635 |
| State of California, GO, Various Purposes: | ||
| 6.00%, 04/01/19 (a) | 4,245 | 4,321,835 |
| 6.00%, 04/01/38 | 7,755 | 7,881,329 |
| Security | Par (000) | Value |
|---|---|---|
| State (continued) | ||
| State of California Public Works Board, LRB: | ||
| Department of Education, Riverside Campus Project, Series B, 6.50%, 04/01/19 (a) | $ 9,000 | $ 9,180,990 |
| Various Capital Projects, Series I, 5.50%, 11/01/33 | 4,940 | 5,553,054 |
| Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/19 (a) | 5,025 | 5,255,798 |
| State of California Public Works Board, RB, Department of Corrections & Rehabilitation, | ||
| Series F, 5.25%, 09/01/33 | 4,335 | 4,807,428 |
| 42,295,069 | ||
| Tobacco 5.2% | ||
| County of California Tobacco Securitization Agency, Refunding RB, Asset-Backed, Merced County, Series A, | ||
| 5.25%, 06/01/45 | 1,135 | 1,137,883 |
| Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.00%, 06/01/47 | 17,470 | 17,010,539 |
| Tobacco Securitization Authority of Northern California, Refunding RB, Asset-Backed Bonds, Series A-1, 5.38%, 06/01/38 | 2,000 | 2,010,460 |
| Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, | ||
| Senior Series A-1: | ||
| 5.00%, 06/01/37 | 2,500 | 2,506,200 |
| 5.13%, 06/01/46 | 885 | 887,195 |
| 23,552,277 | ||
| Transportation 17.5% | ||
| City & County of San Francisco California Airports Commission, ARB, Second Series E: | ||
| 6.00%, 05/01/19 (a) | 520 | 531,154 |
| 6.00%, 05/01/39 | 6,230 | 6,361,453 |
| City & County of San Francisco California Airports Commission, Refunding ARB, Series B, | ||
| 5.00%, 05/01/47 | 6,500 | 7,136,155 |
| City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, AMT: | ||
| Series B, 5.00%, 05/15/36 | 2,100 | 2,289,630 |
2
Schedule of Investments (unaudited) (continued) October 31, 2018 BlackRock California Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets)
| Security | Par (000) | Value |
|---|---|---|
| Transportation (continued) | ||
| City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, AMT | ||
| (continued): | ||
| Sub-Series A, 5.00%, 05/15/42 | $ 4,220 | $ 4,557,684 |
| Sub-Series B, 5.00%, 05/15/34 | 3,425 | 3,762,705 |
| Subordinate, Series B, 5.00%, 05/15/31 | 100 | 110,978 |
| City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, | ||
| Senior, Series A: | ||
| 5.00%, 05/15/34 | 6,650 | 6,745,028 |
| 5.00%, 05/15/40 | 4,760 | 4,933,074 |
| City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT: | ||
| Series A, 5.00%, 03/01/41 | 3,850 | 4,188,531 |
| Series A-1, 5.75%, 03/01/34 | 3,875 | 4,145,514 |
| Series A-1, 6.25%, 03/01/34 | 2,650 | 2,887,997 |
| County of Sacramento California Airport System Revenue, Refunding RB, Series B, | ||
| 5.00%, 07/01/38 | 1,500 | 1,683,075 |
| County of Sacramento California Airport System Revenue, Refunding ARB, Senior Series A, | ||
| 5.00%, 07/01/41 | 12,500 | 13,706,250 |
| County of Sacramento California Airport System Revenue, Refunding RB, AMT, Series C, | ||
| 5.00%, 07/01/36 | 6,395 | 7,081,439 |
| Port of Los Angeles California Harbor Department, Refunding RB, Series A, AMT, | ||
| 5.00%, 08/01/44 | 4,135 | 4,470,803 |
| San Francisco Municipal Transportation Agency, RB, 4.00%, 03/01/46 | 4,935 | 4,976,602 |
| 79,568,072 | ||
| Utilities 17.7% | ||
| City & County of San Francisco Public Utilities Commission Wastewater Revenue, RB, Series B, | ||
| 5.00%, 10/01/43 | 2,485 | 2,796,544 |
| City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series D, | ||
| 5.88%, 01/01/34 | 6,555 | 6,687,280 |
| City of Los Angeles California Department of Water & Power, Refunding RB, Water System, | ||
| Series A, 5.25%, 07/01/39 | 4,000 | 4,244,080 |
| Security | Par (000) | Value |
|---|---|---|
| Utilities (continued) | ||
| City of Los Angeles California Wastewater System, Refunding RB, Series A, 5.00%, 06/01/19 (a) | $ 2,000 | $ 2,037,700 |
| City of Petaluma California Wastewater Revenue, Refunding RB, 6.00%, 05/01/21 (a) | 5,625 | 6,179,062 |
| City of Richmond California Wastewater Revenue, Refunding RB, Series A, 5.00%, 08/01/42 | 1,750 | 1,963,045 |
| City of San Francisco California Public Utilities Commission Water Revenue, RB, Sub-Series A, 5.00%, 11/01/37 | 5,000 | 5,379,800 |
| Dublin-San Ramon Services District Water Revenue, Refunding RB, | ||
| 6.00%, 02/01/21 (a) | 2,425 | 2,641,504 |
| El Dorado Irrigation District/El Dorado County Water Agency, Refunding RB, Series A (AGM), | ||
| 5.25%, 03/01/39 | 10,000 | 11,136,800 |
| Los Angeles Department of Water, Refunding RB, Series A: | ||
| 5.00%, 07/01/41 | 5,000 | 5,569,700 |
| 5.25%, 07/01/44 | 3,000 | 3,401,760 |
| Los Angeles Department of Water & Power System Revenue, RB, Power System, Series A, | ||
| 5.00%, 07/01/42 | 10,670 | 11,861,519 |
| Los Angeles Department of Water & Power System Revenue, RB, Series B, | ||
| 5.00%, 07/01/38 | 6,000 | 6,686,280 |
| Los Angeles Department of Water & Power System Revenue, Refunding RB, Series A, | ||
| 5.00%, 07/01/33 | 8,905 | 9,974,580 |
| 80,559,654 | ||
| Total Municipal Bonds in California | 435,520,672 | |
| Multi-State 0.4% | ||
| Housing 0.4% | ||
| Centerline Equity Issuer Trust (b) : | ||
| Series A-4-2, 6.00%, | ||
| 05/15/19 | 1,000 | 1,018,340 |
| Series B-3-2, 6.30%, | ||
| 05/15/19 | 1,000 | 1,019,810 |
| Total Municipal Bonds in Multi-State | 2,038,150 | |
| Puerto Rico 1.3% | ||
| Tobacco 1.3% | ||
| Childrens Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds: | ||
| 5.50%, 05/15/39 | 2,910 | 2,951,322 |
3
Schedule of Investments (unaudited) (continued) October 31, 2018 BlackRock California Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets)
| Security | Par (000) | Value |
|---|---|---|
| Tobacco (continued) | ||
| Childrens Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds (continued): | ||
| 5.63%, 05/15/43 | $ 2,765 | $ 2,802,632 |
| Total Municipal Bonds in Puerto Rico | 5,753,954 | |
| Total Municipal Bonds 97.4% (Cost $437,526,974) | 443,312,776 | |
| Municipal Bonds Transferred to Tender Option Bond Trusts (c) | ||
| California 73.8% | ||
| County/City/Special District/School District 27.2% | ||
| Los Angeles California Unified School District, GO, Series I, 5.00%, 01/01/34 | 5,000 | 5,093,250 |
| Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 08/01/20 (a)(d) | 12,902 | 13,642,801 |
| Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, | ||
| 6.00%, 08/01/19 (a) | 20,131 | 20,769,999 |
| Palomar Community College District, GO, Election of 2006, Series C, 5.00%, 08/01/44 | 15,140 | 16,878,526 |
| San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19 (a) | 10,484 | 10,756,155 |
| San Diego Unified School District California, GO, Election of 2012, Series I, | ||
| 5.00%, 07/01/47 | 10,000 | 11,175,650 |
| San Francisco California Bay Area Rapid Transit District, GO, Election 2016, Green Bond, Series A, | ||
| 5.00%, 08/01/47 | 10,615 | 12,053,583 |
| San Joaquin California Delta Community College District, GO, Election of 2004, Series C, | ||
| 5.00%, 08/01/39 | 14,505 | 15,928,933 |
| San Jose Unified School District, GO, Series C, 4.00%, 08/01/39 | 6,100 | 6,215,870 |
| Security | Par (000) | Value |
|---|---|---|
| County/City/Special District/School District (continued) | ||
| Santa Monica Community College District, GO, Election of 2016, Series A, 5.00%, 08/01/43 | $ 10,000 | $ 11,344,150 |
| 123,858,917 | ||
| Education 16.1% | ||
| University of California, RB: | ||
| Limited Project, Series M, 5.00%, 05/15/42 | 10,000 | 11,059,600 |
| Series AM, 5.25%, 05/15/44 | 5,000 | 5,599,625 |
| Series O, 5.75%, 05/15/19 (a) | 12,303 | 12,565,955 |
| University of California, Refunding RB: | ||
| Series A, 5.00%, 11/01/43 | 11,791 | 13,080,527 |
| Series AI, 5.00%, 05/15/38 | 14,225 | 15,485,990 |
| Series I, 5.00%, 05/15/40 | 14,065 | 15,547,343 |
| 73,339,040 | ||
| Health 9.5% | ||
| California Health Facilities Financing Authority, RB, Sutter Health, Series A: | ||
| 5.00%, 11/15/41 | 11,620 | 12,653,192 |
| 5.00%, 08/15/52 | 9,695 | 10,334,618 |
| California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, | ||
| 5.00%, 04/01/42 | 18,960 | 20,064,609 |
| 43,052,419 | ||
| State 2.5% | ||
| University of California, Refunding RB, Series AR, 5.00%, 05/15/41 | 10,165 | 11,209,701 |
| Transportation 11.8% | ||
| City & County of San Francisco California Airports Commission, Refunding RB, San Francisco | ||
| International Airport, Series B, AMT, 5.00%, 05/01/41 | 8,720 | 9,379,450 |
| City of Los Angeles California Department of Airports, ARB, AMT: | ||
| Los Angeles International Airport, Sub-Series A, 5.00%, 05/15/42 | 22,710 | 24,527,353 |
| Series D, 5.00%, 05/15/41 | 18,632 | 20,060,318 |
| 53,967,121 | ||
| Utilities 6.7% | ||
| County of Orange California Water District, COP, Refunding, 5.00%, 08/15/19 (a) | 10,480 | 10,749,074 |
4
Schedule of Investments (unaudited) (continued) October 31, 2018 BlackRock California Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets)
| Security | Par (000) | Value |
|---|---|---|
| Utilities (continued) | ||
| Los Angeles Department of Water, Refunding RB, Series A, 5.00%, 07/01/46 | $ 6,412 | $ 7,054,955 |
| San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, | ||
| 5.25%, 05/15/19 (a) | 12,460 | 12,695,805 |
| 30,499,834 | ||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts 73.8% (Cost | ||
| $337,811,648) | 335,927,032 | |
| Total Long-Term Investments 171.2% (Cost $775,338,622) | 779,239,808 |
| Security | Value | ||
|---|---|---|---|
| Short-Term Securities 0.0% | |||
| BlackRock Liquidity Funds California Money Fund, Institutional Class, 1.12% (e)(f) | 9 | $ 9 | |
| Total Short-Term Securities 0.0% (Cost $9) | 9 | ||
| Total Investments 171.2% (Cost $775,338,631) | 779,239,817 | ||
| Other Assets Less Liabilities 2.1% | 9,922,296 | ||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable | |||
| (35.7)% | (162,712,239 | ) | |
| VMTP Shares at Liquidation Value (37.6)% | (171,300,000 | ) | |
| Net Assets Applicable to Common Shares 100.0% | $ 455,149,874 |
(a) U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c) Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing.
(d) All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expires on May 18, 2020, is $6,798,086.
(e) Annualized 7-day yield as of period end.
(f) During the period ended October 31, 2018, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliate — BlackRock Liquidity Funds California Money Fund, Institutinal Class | | 9 | 9 | Value at 10/31/18 — $ 9 | Income — $ | Net Realized Gain (Loss) (a) — $ | Change in Unrealized Appreciation (Depreciation) — $ | |||
|---|---|---|---|---|---|---|---|---|---|---|
| BlackRock Liquidity Funds, MuniCash, Institutional Class | 6,190,589 | (6,190,589 | ) | | | 599 | (9 | ) | (610 | ) |
| $ 9 | $ 599 | $ (9 | ) | $ (610 | ) |
(a) Includes net capital gain distributions, if applicable.
For Trust compliance purposes, the Trusts sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
5
Schedule of Investments (unaudited) (continued) October 31, 2018 BlackRock California Municipal Income Trust (BFZ)
Portfolio Abbreviations
AGC Assured Guarantee Corp.
AGM Assured Guaranty Municipal Corp.
AMT Alternative Minimum Tax (subject to)
ARB Airport Revenue Bonds
COP Certificates of Participation
GO General Obligation Bonds
LRB Lease Revenue Bonds
RB Revenue Bonds
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| Description | Notional Amount (000) | Value/ Unrealized Appreciation (Depreciation) | ||
|---|---|---|---|---|
| Short Contracts: | ||||
| 10-Year U.S. Treasury Note | 39 | 12/19/18 | $ 4,619 | $ 34,867 |
| Long U.S. Treasury Bond | 100 | 12/19/18 | 13,813 | 312,270 |
| 5-Year U.S. Treasury Note | 24 | 12/31/18 | 2,697 | 10,731 |
| $ 357,868 |
6
Schedule of Investments (unaudited) (continued) October 31, 2018 BlackRock California Municipal Income Trust (BFZ)
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
Level 1 Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access
Level 2 Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
Level 3 Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trusts own assumptions used in determining the fair value of investments and derivative financial instruments)
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the Global Valuation Committee) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.
Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trusts policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trusts policy regarding valuation of investments and derivative financial instruments, refer to the Trusts most recent financial statements as contained in its annual report.
The following tables summarize the Trusts investments and derivative financial instruments categorized in the disclosure hierarchy:
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Assets: | ||||
| Investments: | ||||
| Long-Term Investments (a) | $ | $ 779,239,808 | $ | $ 779,239,808 |
| Short-Term Securities | 9 | | | 9 |
| $ 9 | $ 779,239,808 | $ | $ 779,239,817 | |
| Derivative Financial | ||||
| Instruments (b) | ||||
| Assets: | ||||
| Interest rate contracts | $ 357,868 | $ | $ | $ 357,868 |
(a) See above Schedule of Investments for values in sector.
(b) Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.
7
Schedule of Investments (unaudited) (continued) October 31, 2018 BlackRock California Municipal Income Trust (BFZ)
Fair Value Hierarchy as of Period End (continued)
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
| Level 1 | Level 2 | Level 3 | Total | |||
|---|---|---|---|---|---|---|
| Liabilities: | ||||||
| TOB Trust Certificates | $ | $ (162,125,868 | ) | $ | $ (162,125,868 | ) |
| VMTP Shares at Liquidation Value | | (171,300,000 | ) | | (171,300,000 | ) |
| $ | $ (333,425,868 | ) | $ | $ (333,425,868 | ) |
During the period ended October 31, 2018, there were no transfers between levels.
8
Item 2 Controls and Procedures
2(a) The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 3 Exhibits
Certifications Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock California Municipal Income Trust
| By: |
|---|
| John M. Perlowski |
Chief Executive Officer (principal executive officer) of
BlackRock California Municipal Income Trust
Date: December 19, 2018
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: |
|---|
| John M. Perlowski |
Chief Executive Officer (principal executive officer) of
BlackRock California Municipal Income Trust
Date: December 19, 2018
| By: |
|---|
| Neal J. Andrews |
Chief Financial Officer (principal financial officer) of
BlackRock California Municipal Income Trust
Date: December 19, 2018
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