for violations relating to its marketing and sale of proprietary bond funds known as Term Trusts.
NASD Regulation's complaint alleges that Dean Witter sold over $2 billion of TCW/DW Term Trusts to over 100,000 customer accounts through the use of a firm-wide internal marketing campaign that misrepresented the Trusts as safe, secure, low-risk investments.
NEW YORK -- On January 2, 2013, each of BlackRock Municipal 2018 Term Trust (NYSE: BPK), BlackRock California Municipal 2018 Term Trust (NYSE: BJZ), BlackRock New York Municipal 2018 Term Trust (NYSE: BLH), BlackRock Municipal 2020 Term Trust (NYSE: BKK) and BlackRock Florida Municipal 2020 Term Trust (NYSE: BFO),the five BlackRock closed-end term trusts with auction rate preferred shares ("ARPS") outstanding (the "Term Trusts"), announced partial redemptions of their respective ARPS.
Term Trusts are a unique sub-set of closed-end funds which have (i) a defined maturity date at which time the Term Trust will liquidate and distribute proceeds to investors and (ii) an investment objective to seek to (a) provide current income exempt from regular Federal income tax (and state income tax, as applicable) and (b) return the Term Trust's initial public offering price to common shareholders on or about the Term Trust's stated maturity date.
The company also has added Thomas McGlinch, vice president of Piper Capital, to the fund's management team, as well as the management team for the term trusts that will mature in 1996, 1997, 1998 and 1999.
Our goal, as we continue to manage the term trusts toward their respective termination dates, is to avail ourselves of the best possible expertise, both inside Piper Capital and more broadly in the field of mortgage-backed securities," Piper said.
BlackRock has successfully met the primary investment objective, of returning a trust's initial offering price, on all six of its
term trusts that have reached maturity.
Since 1988, BlackRock has successfully managed four
term trusts to maturity.
BlackRock, BNN's investment advisor, invented
term trusts in 1988 to provide investors in fixed-income securities a way to receive strong dividends while having a specified date for retrieving their principal.
With the withdrawal of these proposals, each of the municipal
term trusts will retain its initial investment objectives and guidelines.
The Boards of Directors of ten BlackRock municipal closed-end trusts approved four separate tax-free transactions, each involving the combination of one or more BlackRock municipal
term trusts with and into a corresponding BlackRock perpetual closed-end trust.
and the Board of Directors of The BlackRock Investment Quality
Term Trust, Inc.
