This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Boards Of Directors/Trustees Of BlackRock Closed-End Funds Reject Demands

BlackRock Advisors, LLC today announced that the Board of Directors/ Trustees (collectively, the “Boards”) of each of the closed-end funds (the “Funds”) identified below have determined to reject the demands contained in the demand letters received by each Fund related to the redemption of its auction market preferred shares (“AMPS”).

As previously announced on June 10, 2010 and August 11, 2010, each of the 20 BlackRock closed-end funds listed below received a demand letter from a law firm on behalf of purported common shareholders of each Fund. The demand letters allege that BlackRock Advisors, LLC (each Fund’s investment adviser) and the Funds’ officers and Boards of Directors/Trustees breached their fiduciary duties by redeeming at par certain of the Funds’ AMPS, and demanded that the Boards take action to remedy those alleged breaches.

In response to the demand letters, the Boards established a Demand Review Committee (the “Committee”) of the independent Directors/Trustees to investigate the claims made in the demand letters with the assistance of independent counsel. Based upon its investigation, the Committee recommended that the Boards reject the demands specified in the demand letters. After reviewing the findings of the Committee, the Board for each Fund unanimously adopted the Committee’s recommendation and unanimously voted to reject the demands.

The Funds that received demand letters are as follows:
Fund Name       Ticker
BlackRock California Municipal Income Trust       BFZ
BlackRock Credit Allocation Income Trust II, Inc. PSY
BlackRock Credit Allocation Income Trust IV BTZ
BlackRock Insured Municipal Income Investment Trust BAF
BlackRock Insured Municipal Income Trust BYM
BlackRock Insured Municipal Term Trust BMT
BlackRock Muni Intermediate Duration Fund, Inc. MUI
BlackRock Municipal Bond Investment Trust BIE
BlackRock Municipal Income Trust BFK
BlackRock MuniHoldings Insured Fund II, Inc. MUE
BlackRock MuniHoldings Insured Investment Fund MFL
BlackRock MuniHoldings New Jersey Insured Fund, Inc. MUJ
BlackRock MuniYield California Insured Fund, Inc. MCA
BlackRock MuniYield Fund, Inc. MYD
BlackRock MuniYield Insured Fund, Inc. MYI
BlackRock MuniYield Michigan Insured Fund, Inc. MIY
BlackRock New Jersey Municipal Income Trust BNJ
BlackRock New York Insured Municipal Income Trust BSE
BlackRock New York Municipal Bond Trust BQH
The BlackRock Strategic Municipal Trust       BSD

The allegations made by shareholders' counsel in the demand letters were repeated and expanded in complaints filed on July 27, 2010 and August 3, 2010 by the same counsel in Supreme Court, N.Y. County. The Committee reviewed both the complaints and the demand letters, and the conclusion of the Committee and the Boards that the allegations lack merit applies to both.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BIE $15.28 0.13%
BNJ $15.72 -0.06%
BAF $14.94 -0.47%
BFZ $15.89 -0.81%
BFK $14.96 -1.10%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs