BLACKROCK MUNICIPAL INCOME TRUST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-10339

Name of Fund: BlackRock Municipal Income Trust (BFK)

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Income Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 04/30/2016

Date of reporting period: 04/30/2016


Item 1 – Report to Stockholders


APRIL 30, 2016

 

 

ANNUAL REPORT

 

    LOGO

 

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

BlackRock Long-Term Municipal Advantage Trust (BTA)

BlackRock Municipal 2020 Term Trust (BKK)

BlackRock Municipal Income Trust (BFK)

BlackRock Strategic Municipal Trust (BSD)

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


Table of Contents     

 

     Page  

The Markets in Review

    3   

Annual Report:

 

Municipal Market Overview

    4   

The Benefits and Risks of Leveraging

    5   

Derivative Financial Instruments

    5   

Trust Summaries

    6   
Financial Statements:  

Schedules of Investments

    16   

Statements of Assets and Liabilities

    50   

Statements of Operations

    51   

Statements of Changes in Net Assets

    52   

Statements of Cash Flows

    54   

Financial Highlights

    55   

Notes to Financial Statements

    60   

Report of Independent Registered Public Accounting Firm

    73   

Automatic Dividend Reinvestment Plan

    74   

Officers and Trustees

    75   

Additional Information

    78   

 

                
2    ANNUAL REPORT    APRIL 30, 2016   


The Markets in Review

 

Dear Shareholder,

Diverging monetary policies and shifting economic outlooks across regions have been the overarching themes driving financial markets over the past couple of years. Investors spent most of 2015 anticipating the end of the Federal Reserve’s (the “Fed”) near-zero interest rate policy as U.S. growth outpaced other developed markets. The Fed ultimately hiked rates in December, whereas the European Central Bank and the Bank of Japan took additional steps to stimulate growth, even introducing negative interest rates. The U.S. dollar had strengthened considerably ahead of these developments, causing profit challenges for U.S. companies that generate revenues overseas, and pressuring emerging market currencies and commodities prices.

Global market volatility increased in the latter part of 2015 and spilled over into early 2016. Oil prices were a key factor behind the instability after collapsing in mid-2015 due to excess global supply. China, one of the world’s largest consumers of oil, was another notable source of stress for financial markets. Signs of slowing economic growth, a depreciating yuan and declining confidence in the country’s policymakers stoked investors’ worries about the potential impact of China’s weakness on the global economy. Risk assets (such as equities and high yield bonds) suffered in this environment.

After a painful start to the new year, fears of a global recession began to fade as the first quarter wore on, allowing markets to calm and risk assets to rebound. Central bank stimulus in Europe and Japan, combined with a more tempered outlook for rate hikes in the United States, helped bolster financial markets. A softening in U.S. dollar strength offered some relief to U.S. exporters and emerging market economies. Oil prices found firmer footing as global supply showed signs of leveling off.

The selloff in risk assets at the turn of the year brought valuations to more reasonable levels, creating some appealing entry points for investors in 2016. Nonetheless, slow but relatively stable growth in the United States is countered by a less optimistic global economic outlook and uncertainties around the efficacy of China’s policy response, the potential consequences of negative interest rates in Europe and Japan, and a host of geopolitical risks.

For the 12 months ended April 30, 2016, higher-quality assets such as municipal bonds, U.S. Treasuries and investment grade corporate bonds generated positive returns, while riskier assets such as non-U.S. and small cap equities broadly declined.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to adjust accordingly as market conditions change over time. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of April 30, 2016  
    6-month     12-month  

U.S. large cap equities
(S&P 500® Index)

    0.43     1.21

U.S. small cap equities
(Russell 2000® Index)

    (1.90     (5.94

International equities
(MSCI Europe, Australasia,
Far East Index)

    (3.07     (9.32

Emerging market equities
(MSCI Emerging Markets Index)

    (0.13     (17.87

3-month Treasury bills
(BofA Merrill Lynch 3-Month
U.S. Treasury Bill Index)

    0.14        0.15   

U.S. Treasury securities
(BofA Merrill Lynch
10-Year U.S. Treasury
Index)

    3.76        3.74   

U.S. investment grade bonds
(Barclays U.S.
Aggregate Bond Index)

    2.82        2.72   

Tax-exempt municipal
bonds (S&P Municipal
Bond Index)

    3.52        5.16   

U.S. high yield bonds
(Barclays U.S. Corporate
High Yield 2% Issuer
Capped Index)

    2.38        (1.08
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.    

 

                
   THIS PAGE NOT PART OF YOUR FUND REPORT       3


Municipal Market Overview     

 

For the Reporting Period Ended April 30, 2016

Municipal Market Conditions

Municipal bonds generated positive performance for the period, due to falling interest rates and a favorable supply-and-demand environment. Interest rates were volatile in 2015 (bond prices rise as rates fall) leading up to a long-awaited rate hike from the U.S. Federal Reserve (the “Fed”) that ultimately came in December. However, ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in strong demand for fixed income investments, with municipal bonds being one of the strongest-performing sectors for the 12-month period. Investors favored the relative stability of municipal bonds amid bouts of volatility resulting from uneven U.S. economic data, falling oil prices, global growth concerns, geopolitical risks, and widening central bank divergence — i.e., policy easing outside the United States while the Fed was posturing to commence policy tightening. During the 12 months ended April 30, 2016, municipal bond funds garnered net inflows of approximately $27 billion (based on data from the Investment Company Institute).

For the same 12-month period, total new issuance remained relatively strong from a historical perspective at $380 billion (though lower than the $397 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 58%) as issuers took advantage of low interest rates and a flatter yield curve to reduce their borrowing costs.

S&P Municipal Bond Index

Total Returns as of April 30, 2016

  6 months:   3.52%

12 months:   5.16%

A Closer Look at Yields

 

LOGO

From April 30, 2015 to April 30, 2016, yields on AAA-rated 30-year municipal bonds decreased by 47 basis points (“bps”) from 3.05% to 2.58%, while 10-year rates fell by 51 bps from 2.12% to 1.61% and 5-year rates decreased 32 bps from 1.30% to 0.98% (as measured by Thomson Municipal Market Data). The municipal yield curve experienced significant flattening over the 12-month period with the spread between 2- and 30-year maturities flattening by 58 bps and the spread between 2- and 10-year maturities flattening by 62 bps.

During the same time period, on a relative basis, tax-exempt municipal bonds broadly outperformed U.S. Treasuries with the greatest outperformance experienced in longer-term issues. In absolute terms, the positive performance of municipal bonds was driven largely by falling interest rates as well as a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities became increasingly scarce. More broadly, municipal bonds benefited from the greater appeal of tax-exempt investing in light of the higher tax rates implemented in 2014. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

The majority of municipal credits remain strong, despite well-publicized distress among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — have exhibited markedly improved credit fundamentals during the slow national recovery. However, several states with the largest unfunded pension liabilities have seen their bond prices decline noticeably and remain vulnerable to additional price deterioration. On the local level, Chicago’s credit quality downgrade is an outlier relative to other cities due to its larger pension liability and inadequate funding remedies. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of April 30, 2016, and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

The Standard & Poor’s Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the US municipal bond market. All bonds in the index are exempt from US federal income taxes or subject to the alternative minimum tax. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.


The Benefits and Risks of Leveraging     

 

The Trusts may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Trust on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Trusts (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trusts’ shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV.

To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Trust’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Trust with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Trust’s financing cost of leverage is significantly lower than the income earned on a Trust’s longer-term investments acquired from leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Trusts’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Trusts had not used leverage. Furthermore, the value of the Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of the Trusts’ obligations under their respective leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAVs positively or negatively. Changes in the future direction of interest rates are very

difficult to predict accurately, and there is no assurance that a Trust’s intended leveraging strategy will be successful.

Leverage also generally causes greater changes in the Trusts’ NAVs, market prices and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the net asset value and market price of a Trust’s Common Shares than if the Trusts were not leveraged. In addition, the Trusts may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Trusts to incur losses. The use of leverage may limit a Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. The Trusts incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of the Trusts’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Trusts’ investment advisor will be higher than if the Trusts did not use leverage.

To obtain leverage, each Trust has issued Variable Rate Demand Preferred Shares (“VRDP”), Variable Rate Muni Term Preferred Shares (“VMTP Shares”) or Auction Market Preferred Shares (“AMPS”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Trust is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Trust may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Trust may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Trust segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Trust’s obligations under the TOB Trust (including accrued interest), a TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements under the 1940 Act.

 

 

Derivative Financial Instruments     

 

The Trusts may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other asset without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the

transaction or illiquidity of the instrument. The Trusts’ successful use of a derivative financial instrument depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

                
   ANNUAL REPORT    APRIL 30, 2016    5


Trust Summary as of April 30, 2016    BlackRock Investment Quality Municipal Trust, Inc.

 

Trust Overview

BlackRock Investment Quality Municipal Trust, Inc.’s (BKN) (the “Trust”) investment objective is to provide high current income exempt from regular federal income tax consistent with the preservation of capital. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in securities rated investment grade at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Trust Information      

Symbol on New York Stock Exchange (“NYSE”)

   BKN

Initial Offering Date

   February 19, 1993

Yield on Closing Market Price as of April 30, 2016 ($16.94)1

   5.24%

Tax Equivalent Yield2

   9.26%

Current Monthly Distribution per Common Share3

   $0.074

Current Annualized Distribution per Common Share3

   $0.888

Economic Leverage as of April 30, 20164

   35%

 

  1   

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

  2   

Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

The monthly distribution per Common Share, declared on June 1, 2016, was decreased to $0.072 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

 

  4   

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

 

Performance

Returns for the 12 months ended April 30, 2016 were as follows:

 

    Returns Based On  
     Market Price     NAV  

BKN1,2

    15.15     10.92

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    13.64     8.61

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2   

The Trust moved from a discount to NAV to a premium during the period, which accounts for the difference between performance based on price and performance based on NAV.

 

  3  

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

A positive interest-rate backdrop helped fuel a robust gain for the U.S. municipal bond market during the annual period. U.S. Treasury yields fell (as prices rose) amid an environment of slow global growth, declining yields overseas, and an emerging consensus that the Fed would maintain a gradual approach to raising short-term interest rates. Municipals generally outperformed Treasuries, reflecting favorable supply-and-demand conditions in the market and the overall health of state and local finances outside of select areas such as Puerto Rico, Illinois and New Jersey. Longer-term municipal bonds outpaced their short-term counterparts, while lower-quality securities typically outperformed higher-quality issues.

 

 

With this as the backdrop, the Trust’s holdings in longer-duration and longer-dated bonds generally provided the best returns. (Duration is a measure of interest-rate sensitivity.) The Trust’s allocations to the tax-backed (states, local and school districts), health care and transportation sectors were positive contributors to performance. Positions in zero-coupon bonds, which delivered outstanding returns compared to current-coupon issues, also contributed. Consistent with the broader market environment, the strongest returns came from the Trust’s holdings in higher-yielding, lower-rated investment-grade credits. With that said, positions in high-quality, pre-refunded bonds also contributed positively to performance.

 

 

Income in the form of coupon payments made up a meaningful portion of the Trust’s total return for the period. In addition, the Trust’s minimal cash position and use of leverage provided both incremental return and income.

 

 

The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in the market.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

                
6    ANNUAL REPORT    APRIL 30, 2016   


     BlackRock Investment Quality Municipal Trust, Inc.

 

Market Price and Net Asset Value Per Share Summary                         

 

      4/30/16      4/30/15      Change      High      Low  

Market Price

   $ 16.94       $ 15.60         8.59    $ 17.36       $ 14.44   

Net Asset Value

   $ 16.83       $ 16.09         4.60    $ 16.85       $ 15.68   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*

 

Sector Allocation   4/30/16     4/30/15  

Health

    23     23

County/City/Special District/School District

    16        15   

Education

    15        17   

Transportation

    14        12   

Utilities

    12        12   

State

    10        12   

Corporate

    7        6   

Tobacco

    3        3   

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector subclassifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.

 

   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

      4

2017

    1   

2018

    7   

2019

    9   

2020

    9   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

  *   Excludes short-term securities.
Credit Quality Allocation1   4/30/16     4/30/15  

AAA/Aaa

    6     5

AA/Aa

    46        46   

A

    28        31   

BBB/Baa

    11        9   

BB/Ba

    2        2   

B

    1        1   

N/R2

    6        6   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016 and April 30, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents less than 1% and 3%, respectively, of the Trust’s total investments.

 

 

                
   ANNUAL REPORT    APRIL 30, 2016    7


Trust Summary as of April 30, 2016    BlackRock Long-Term Municipal Advantage Trust

 

Trust Overview

BlackRock Long-Term Municipal Advantage Trust’s (BTA) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal obligations and derivative instruments with exposure to such municipal obligations, in each case that are exempt from federal income tax (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment and, under normal market conditions, the Trust’s municipal bond portfolio will have a dollar-weighted average maturity of greater than 10 years. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Trust Information      

Symbol on NYSE

   BTA

Initial Offering Date

   February 28, 2006

Yield on Closing Market Price as of April 30, 2016 ($12.28)1

   5.67%

Tax Equivalent Yield2

   10.02%

Current Monthly Distribution per Common Share3

   $0.058

Current Annualized Distribution per Common Share3

   $0.696

Economic Leverage as of April 30, 20164

   37%

 

  1   

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

  2   

Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

The monthly distribution per Common Share, declared on June 1, 2016, was decreased to $0.0545 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

 

  4   

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the 12 months ended April 30, 2016 were as follows:

 

    Returns Based On  
     Market Price     NAV  

BTA1,2

    14.39     9.51

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    13.64     8.61

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

 

  3   

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

A positive interest-rate backdrop helped fuel a robust gain for the U.S. municipal bond market during the annual period. U.S. Treasury yields fell (as prices rose) amid an environment of slow global growth, declining yields overseas, and an emerging consensus that the Fed would maintain a gradual approach to raising short-term interest rates. Municipals generally outperformed Treasuries, reflecting favorable supply-and-demand conditions in the market and the overall health of state and local finances outside of select areas such as Puerto Rico, Illinois and New Jersey. Longer-term municipal bonds outpaced their short-term counterparts, while lower-quality securities typically outperformed higher-quality issues.

 

 

Income in the form of coupon payments made up a meaningful portion of the Trust’s total return for the period. In addition, the Trust’s use of leverage provided both incremental return and income in a relatively stable rate environment. The Trust’s duration positioning, highlighted by concentrations in longer-dated securities with maturities of 25 years and above, was helpful to performance as well. (Duration is a measure of interest-rate sensitivity.)

 

 

The Trust’s concentration in securities rated A and AA helped performance, as both credit tiers outpaced issues rated AAA. Similarly, holdings in bonds rated below investment grade (i.e., below BBB) also had a positive impact on results due to the combination of their higher yields and strong relative price performance.

 

 

On a sector basis, utilities, health care and transportation were top performers for the period.

 

 

Despite offering generous yields in comparison to the broader market, the Trust’s more-seasoned holdings detracted from performance due to the premium amortization that occurred as the bonds approached their first call dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A bond premium occurs when the price of the bond has increased due to a decline in interest rates.)

 

 

The Trust’s yield curve positioning also detracted somewhat given the more substantive decline in intermediate-term yields versus the longer maturities in which the portfolio is largely concentrated.

 

 

The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on its return due to the overall strength in the market.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

                
8    ANNUAL REPORT    APRIL 30, 2016   


     BlackRock Long-Term Municipal Advantage Trust

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/16     

4/30/15

     Change      High      Low  

Market Price

   $ 12.28       $ 11.41         7.62    $ 12.33       $ 10.67   

Net Asset Value

   $ 12.89       $ 12.51         3.04    $ 12.89       $ 12.19   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*

 

Sector Allocation   4/30/16    

4/30/15

 

Health

    19     21

Utilities

    16        19   

Transportation

    15        16   

County/City/Special District/School District

    12        9   

Education

    11        10   

Tobacco

    10        5   

State

    8        12   

Corporate

    8        7   

Housing

    1        1   

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector subclassifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.

 

   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    5

2017

    4   

2018

    2   

2019

    12   

2020

    11   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

  *   Excludes short-term securities.
Credit Quality Allocation1   4/30/16    

4/30/15

 

AAA/Aaa

    5     14

AA/Aa

    42        51   

A

    16        14   

BBB/Baa

    16        10   

BB/Ba

    7        2   

B

    4        2   

N/R2

    10        7   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016 and April 30, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade each represents 1% of the Trust’s total investments.

 

 

                
   ANNUAL REPORT    APRIL 30, 2016    9


Trust Summary as of April 30, 2016    BlackRock Municipal 2020 Term Trust

 

Trust Overview

BlackRock Municipal 2020 Term Trust’s (BKK) (the “Trust”) investment objectives are to provide current income exempt from regular federal income tax and to return $15 per Common Share (the initial offering price per Common Share) to holders of Common Shares on or about December 31, 2020. The Trust seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

There is no assurance that the Trust will achieve its investment objective of returning $15.00 per Common Share.

 

Trust Information      

Symbol on NYSE

   BKK

Initial Offering Date

   September 30, 2003

Termination Date (on or about)

   December 31, 2020

Yield on Closing Market Price as of April 30, 2016 ($16.14)1

   3.33%

Tax Equivalent Yield2

   5.88%

Current Monthly Distribution per Common Share3

   $0.0448

Current Annualized Distribution per Common Share3

   $0.5376

Economic Leverage as of April 30, 20164

   10%

 

  1   

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

  2   

Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

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

 

  4   

Represents AMPS and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to AMPS and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

 

Performance

Returns for the 12 months ended April 30, 2016 were as follows:

 

    Returns Based On  
     Market Price     NAV  

BKK1,2

    2.87     3.39

Lipper Intermediate Municipal Debt Funds3

    9.22     6.57

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2   

The Trust‘s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

 

  3  

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

A positive interest-rate backdrop helped fuel a robust gain for the U.S. municipal bond market during the annual period. U.S. Treasury yields fell (as prices rose) amid an environment of slow global growth, declining yields overseas, and an emerging consensus that the Fed would maintain a gradual approach to raising short-term interest rates. Municipals generally outperformed Treasuries, reflecting favorable supply-and-demand conditions in the market and the overall health of state and local finances outside of select areas such as Puerto Rico, Illinois and New Jersey. Longer-term municipal bonds outpaced their short-term counterparts, while lower-quality securities typically outperformed higher-quality issues.

 

 

On a sector basis, the largest contributions to Trust performance came from transportation, corporate and health care issues. Exposure to lower-quality bonds on the investment-grade spectrum further benefited results at a time of elevated investor demand for higher-risk, higher-yielding assets. Positions in zero-coupon bonds, which delivered superior returns compared to current-coupon issues, also contributed positively.

 

 

Income in the form of coupon payments made up a meaningful portion of the Trust’s total return for the period. In addition, the Trust’s minimal cash position and use of leverage provided both incremental return and income.

 

 

The yield curve flattened during the period, with intermediate- and long-term rates falling and one- and two-year rates moving higher in reaction to the Fed’s quarter-point interest rate hike in December 2015. The Trust’s holdings are largely concentrated in maturities of five years or less, meaning that it had exposure to the underperformance of bonds with one- and two-year maturities.

 

 

Despite offering generous yields in comparison to the broader market, the Trust’s more-seasoned holdings detracted from performance due to the premium amortization that occurred as the bonds approached their first call dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A bond premium occurs when the price of the bond has increased due to a decline in interest rates.)

 

 

In terms of sectors, the smallest contributions came from housing, local school district and tobacco issues.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

                
10    ANNUAL REPORT    APRIL 30, 2016   


     BlackRock Municipal 2020 Term Trust

 

 

Market Price and Net Asset Value Per Share Summary

 

      4/30/16      4/30/15      Change      High      Low  

Market Price

   $ 16.14       $ 16.25         (0.68 )%     $ 16.28       $ 15.25   

Net Asset Value

   $ 16.27       $ 16.30         (0.18 )%     $ 16.38       $ 16.03   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*

 

Sector Allocation   4/30/16    

4/30/15

 

Utilities

    17     16

Transportation

    15        17   

County/City/Special District/School District

    14        12   

State

    13        12   

Health

    12        11   

Corporate

    12        14   

Education

    10        9   

Tobacco

    4        4   

Housing

    3        5   

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector subclassifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.

 

   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    6

2017

    5   

2018

    3   

2019

    18   

2020

    46   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

  *   Excludes short-term securities.
Credit Quality Allocation1   4/30/16     4/30/15  

AAA/Aaa

    6     6

AA/Aa

    25        22   

A

    37        45   

BBB/Baa

    19        17   

BB/Ba

    4        2   

B

           1   

N/R2

    9        7   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016 and April 30, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 4% and 2%, respectively, of the Trust’s total investments.

 

 

                
   ANNUAL REPORT    APRIL 30, 2016    11


Trust Summary as of April 30, 2016    BlackRock Municipal Income Trust

 

Trust Overview      

BlackRock Municipal Income Trust’s (BFK) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Trust Information      

Symbol on NYSE

   BFK

Initial Offering Date

   July 27, 2001

Yield on Closing Market Price as of April 30, 2016 ($15.44)1

   5.84%

Tax Equivalent Yield2

   10.32%

Current Monthly Distribution per Common Share3

   $0.0751

Current Annualized Distribution per Common Share3

   $0.9012

Economic Leverage as of April 30, 20164

   37%

 

  1   

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

  2   

Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

The monthly distribution per Common Share, declared on June 1, 2016, was decreased to $0.0711 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

 

  4   

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the 12 months ended April 30, 2016 were as follows:

 

    Returns Based On  
     Market Price     NAV  

BFK1,2

    14.76     8.57

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    13.64     8.61

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2   

The Trust moved from a discount to NAV to a premium during the period, which accounts for the difference between performance based on price and performance based on NAV.

 

  3   

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

A positive interest-rate backdrop helped fuel a robust gain for the U.S. municipal bond market during the annual period. U.S. Treasury yields fell (as prices rose) amid an environment of slow global growth, declining yields overseas, and an emerging consensus that the Fed would maintain a gradual approach to raising short-term interest rates. Municipals generally outperformed Treasuries, reflecting favorable supply-and-demand conditions in the market and the overall health of state and local finances outside of select areas such as Puerto Rico, Illinois and New Jersey. Longer-term municipal bonds outpaced their short-term counterparts, while lower-quality securities typically outperformed higher-quality issues.

 

 

Income in the form of coupon payments made up a meaningful portion of the Trust’s total return for the period. In addition, the Trust’s minimal cash position and use of leverage provided both incremental return and income.

 

 

The Trust’s duration positioning, highlighted by concentrations in longer-dated securities with maturities of 25 years and above, also aided results. (Duration is a measure of interest-rate sensitivity.) Positions in lower-rated investment-grade bonds, as well as holdings of below investment-grade and unrated bonds, further helped performance at a time of elevated demand for higher-risk, higher-yielding investments. Sector concentrations in transportation, utilities and health care also contributed strongly.

 

 

Despite offering generous yields in comparison to the broader market, the Trust’s more seasoned holdings detracted from performance due to the premium amortization that occurred as the bonds approached their first call dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A bond premium occurs when the price of the bond has increased due to a decline in interest rates.) The Trust’s yield curve positioning also detracted somewhat given the more substantive decline in intermediate term yields in relation to the longer maturities in which the portfolio’s holdings are largely concentrated.

 

 

The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in the market.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

                
12    ANNUAL REPORT    APRIL 30, 2016   


     BlackRock Municipal Income Trust

 

 

Market Price and Net Asset Value Per Share Summary                              

 

      4/30/16     

4/30/15

     Change      High      Low  

Market Price

   $ 15.44       $ 14.32         7.82    $ 15.83       $ 13.28   

Net Asset Value

   $ 15.21 1      $ 14.91         2.01    $ 15.21       $ 14.44   

 

  1   

The net asset value does not reflect adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and therefore differs from amounts reported in the Statements of Assets and Liabilities and the Financial Highlights.

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*

 

Sector Allocation   4/30/16    

4/30/15

 

Transportation

    21     22

Utilities

    15        14   

Health

    14        14   

County/City/Special District/School District

    12        14   

Corporate

    11        11   

State

    11        10   

Education

    10        9   

Tobacco

    6        6   

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector subclassifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.

 

   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    10

2017

    2   

2018

    2   

2019

    14   

2020

    13   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

  *   Excludes short-term securities.
Credit Quality Allocation1   4/30/16    

4/30/15

 

AAA/Aaa

    8     9

AA/Aa

    41        40   

A

    21        24   

BBB/Baa

    16        14   

BB/Ba

    4        3   

B

    1        1   

N/R2

    9        9   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016 and April 30, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 2% and 1%, respectively, of the Trust’s total investments.

 

 

                
   ANNUAL REPORT    APRIL 30, 2016    13


Trust Summary as of April 30, 2016    BlackRock Strategic Municipal Trust

 

Trust Overview      

BlackRock Strategic Municipal Trust’s (BSD) (the “Trust”) investment objectives are to provide current income that is exempt from regular federal income tax and to invest in municipal bonds that over time will perform better than the broader municipal bond market. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in investments exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests at least 80% of its assets in investment grade quality securities at the time of investment and, under normal market conditions, primarily invests in municipal bonds with long-term maturities in order to maintain a weighted average maturity of 15 years or more. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objectives will be achieved.

 

Trust Information      

Symbol on NYSE

   BSD

Initial Offering Date

   August 25, 1999

Yield on Closing Market Price as of April 30, 2016 ($15.02)1

   5.67%

Tax Equivalent Yield2

   10.02%

Current Monthly Distribution per Common Share3

   $0.071

Current Annualized Distribution per Common Share3

   $0.852

Economic Leverage as of April 30, 20164

   37%

 

  1   

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

  2   

Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

The monthly distribution per Common Share, declared on June 1, 2016, was decreased to $0.065 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

 

  4   

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the 12 months ended April 30, 2016 were as follows:

 

    Returns Based On  
     Market Price     NAV  

BSD1,2

    14.05     8.32

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    13.64     8.61

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

 

  3   

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

A positive interest-rate backdrop helped fuel a robust gain for the U.S. municipal bond market during the annual period. U.S. Treasury yields fell (as prices rose) amid an environment of slow global growth, declining yields overseas, and an emerging consensus that the Fed would maintain a gradual approach to raising short-term interest rates. Municipals generally outperformed Treasuries, reflecting favorable supply-and-demand conditions in the market and the overall health of state and local finances outside of select areas such as Puerto Rico, Illinois and New Jersey. Longer-term municipal bonds outpaced their short-term counterparts, while lower-quality securities typically outperformed higher-quality issues.

 

 

Income in the form of coupon payments made up a meaningful portion of the Trust’s total return for the period. In addition, the Trust’s use of leverage provided both incremental return and income in a relatively stable rate environment. The Trust’s duration positioning, highlighted by concentrations in longer-dated securities with maturities of 25 years and above, was helpful to performance as well. (Duration is a measure of interest-rate sensitivity.)

 

 

The Trust’s concentration in securities rated A and AA helped performance, as both credit tiers outpaced issues rated AAA. Similarly, holdings in bonds rated below investment grade (i.e., BBB and lower) also had a positive impact on results due to the combination of their higher yields and strong relative price performance.

 

 

On a sector basis, transportation, health care and utilities were top performers for the period.

 

 

Despite offering generous yields in comparison to the broader market, the Trust’s more-seasoned holdings detracted from performance due to the premium amortization that occurred as the bonds approached their first call dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A bond premium occurs when the price of the bond has increased due to a decline in interest rates.)

 

 

The Trust’s yield curve positioning also detracted somewhat given the more substantive decline in intermediate-term yields versus the longer maturities in which the portfolio is largely concentrated.

 

 

The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on its return due to the overall strength in the market.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

                
14    ANNUAL REPORT    APRIL 30, 2016   


     BlackRock Strategic Municipal Trust

 

 

Market Price and Net Asset Value Per Share Summary                              

 

      4/30/16      4/30/15      Change      High      Low  

Market Price

   $ 15.02       $ 14.00         7.29    $ 15.34       $ 12.95   

Net Asset Value

   $ 15.04       $ 14.76         1.90    $ 15.06       $ 14.30   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*

 

Sector Allocation   4/30/16    

4/30/15

 

Transportation

    24     25

Health

    18        17   

Utilities

    14        13   

Education

    11        10   

County/City/Special District/School District

    10        11   

State

    9        9   

Corporate

    9        10   

Tobacco

    5        5   

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector subclassifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.

 

   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    7

2017

    2   

2018

    6   

2019

    13   

2020

    12   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

  *   Excludes short-term securities.
Credit Quality Allocation1   4/30/16     4/30/15  

AAA/Aaa

    9     10

AA/Aa

    41        39   

11A

    25        25   

BBB/Baa

    11        12   

BB/Ba

    4        4   

B

    1        2   

N/R2

    9        8   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016 and April 30, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade each represents 2% of the Trust’s total investments.

 

 

                
   ANNUAL REPORT    APRIL 30, 2016    15


Schedule of Investments April 30, 2016

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 1.4%

    

City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC) (a):

    

6.00%, 6/01/19

   $ 1,745      $ 2,012,788   

6.00%, 6/01/19

     500        576,730   

City of Hoover Alabama Board of Education, Refunding, Special Tax, Capital Outlay Warrants, 4.25%, 2/15/40

     1,275        1,329,850   
    

 

 

 
        3,919,368   

Arizona — 6.3%

    

Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42

     3,300        3,618,912   

City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, 5.00%, 7/01/45 (b)

     455        473,305   

County of Pinal Arizona Electric District No. 3, Refunding RB, Electric System, 4.75%, 7/01/31

     3,750        4,240,462   

Salt Verde Financial Corp., RB, Senior:

    

5.00%, 12/01/32

     1,035        1,267,316   

5.00%, 12/01/37

     4,585        5,716,578   

University Medical Center Corp., RB, 6.50%, 7/01/19 (a)

     750        879,758   

University Medical Center Corp., Refunding RB, 6.00%, 7/01/21 (a)

     1,600        1,986,720   
    

 

 

 
        18,183,051   

Arkansas — 3.2%

    

City of Benton Arkansas, RB, 4.00%, 6/01/39

     1,355        1,463,779   

City of Fort Smith Arkansas Water & Sewer Revenue, Refunding RB, 4.00%, 10/01/40

     1,850        1,968,474   

City of Hot Springs Arkansas, RB, Wastewater, 5.00%, 12/01/38

     1,800        2,074,320   

City of Little Rock Arkansas, RB, 4.00%, 7/01/41

     2,955        3,154,403   

County of Pulaski Arkansas Public Facilities Board, RB, 5.00%, 12/01/42

     465        533,016   
    

 

 

 
        9,193,992   

California — 17.8%

    

California Health Facilities Financing Authority, RB, Sutter Health:

    

Series A, 3.25%, 11/15/36

     1,230        1,248,179   

Series B, 5.88%, 8/15/31

     2,300        2,778,768   

California Infrastructure & Economic Development Bank, Refunding RB, 4.00%, 11/01/45

     3,330        3,531,965   

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A, 5.25%, 12/01/56 (b)(c)

     705        766,399   

Carlsbad California Unified School District, GO, Election of 2006, Series B, 0.00%, 5/01/34 (d)

     1,500        1,572,825   

City of San Jose California, Refunding ARB, Series A-1, AMT, 5.75%, 3/01/34

     3,000        3,533,040   

County of Kern Water Agency Improvement District No. 4, Refunding RB, Series A (AGM), 4.00%, 5/01/38

     535        576,628   

Dinuba California Unified School District, GO, Election of 2006 (AGM), 5.75%, 8/01/33

     535        612,853   

Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 0.00%, 8/01/34 (d)

     2,475        2,314,199   

Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 0.00%, 8/01/38 (e)

     12,000        5,135,640   

Palomar Community College District, GO, CAB, Election of 2006, Series B:

    

0.00%, 8/01/30 (e)

     2,270        1,483,604   
Municipal Bonds   

Par  

(000)

    Value  

California (continued)

    

Palomar Community College District, GO, CAB, Election of 2006, Series B (continued):

    

0.00%, 8/01/33 (e)

   $ 4,250      $ 1,648,703   

0.00%, 8/01/39 (d)

     3,000        2,768,820   

San Diego Community College District, GO, CAB, Election of 2002, 0.00%, 8/01/33 (d)

     4,200        4,766,538   

State of California, GO, Refunding, Various Purposes:

    

5.00%, 2/01/38

     2,000        2,346,940   

4.00%, 10/01/44

     2,520        2,714,065   

State of California, GO, Various Purposes:

    

5.75%, 4/01/31

     3,000        3,426,180   

6.00%, 3/01/33

     2,270        2,698,258   

6.50%, 4/01/33

     2,900        3,379,225   

5.50%, 3/01/40

     3,650        4,262,507   
    

 

 

 
               51,565,336   

Colorado — 0.6%

    

City & County of Denver Colorado, Refunding RB, Series A, 4.00%, 8/01/46

     870        932,770   

Park Creek Metropolitan District, Refunding RB, Senior Limited Property Tax (AGM), 6.00%, 12/01/20 (a)

     750        911,063   
    

 

 

 
               1,843,833   

Connecticut — 0.4%

    

Connecticut State Health & Educational Facility Authority, Refunding RB:

    

Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/36

     950        1,048,505   

Trinity Health Corp., 3.25%, 12/01/36

     150        151,805   
    

 

 

 
               1,200,310   

Delaware — 2.5%

    

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

     1,800        1,968,444   

Delaware Transportation Authority, RB:

    

5.00%, 6/01/45

     3,000        3,513,180   

5.00%, 6/01/55

     1,430        1,633,990   
    

 

 

 
               7,115,614   

Florida — 9.0%

    

Capital Trust Agency Inc., RB, M/F Housing, The Gardens Apartment Project, Series A, 4.75%, 7/01/40

     900        924,192   

City of Tampa Florida, RB, Baycare Health System, Series A, 4.00%, 11/15/46

     1,445        1,531,078   

County of Miami-Dade Florida, RB:

    

CAB, Sub-Series A (NPFGC), 0.00%, 10/01/32 (e)

     4,225        1,819,581   

CAB, Sub-Series A (NPFGC), 0.00%, 10/01/33 (e)

     4,000        1,633,560   

CAB, Sub-Series A (NPFGC), 0.00%, 10/01/34 (e)

     4,580        1,776,582   

CAB, Sub-Series A (NPFGC), 0.00%, 10/01/35 (e)

     5,000        1,838,800   

CAB, Subordinate Special Obligation, 0.00%, 10/01/32 (e)

     5,000        2,773,500   

CAB, Subordinate Special Obligation, 0.00%, 10/01/33 (e)

     15,375        8,173,196   

Series B, AMT, 6.00%, 10/01/32

     3,000        3,725,580   

County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, University of Miami, Series A, 5.00%, 4/01/45

     1,390        1,606,173   
 

 

See Notes to Financial Statements.

 

                
16    ANNUAL REPORT    APRIL 30, 2016   


Schedule of Investments (continued)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

 

Municipal Bonds   

Par  

(000)

    Value  

Florida (continued)

    

County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%, 6/01/32

   $ 200      $ 217,070   
    

 

 

 
               26,019,312   

Georgia — 2.4%

    

City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/43

     6,000        7,049,520   

Hawaii — 0.2%

    

Hawaii State Department of Budget & Finance, Refunding RB, Special Purpose, Senior Living, Kahala Nui, 5.25%, 11/15/37

     600        663,516   

Idaho — 4.2%

    

Boise State University, Refunding RB, Series A:

    

3.00%, 4/01/36

     1,850        1,838,974   

3.13%, 4/01/39

     840        832,398   

Idaho Health Facilities Authority, RB, St. Lukes Health System Project, Series A, 5.00%, 3/01/39

     5,800        6,604,750   

Idaho Health Facilities Authority, Refunding RB, Trinity Health Group, Series B, 6.25%, 12/01/18 (a)

     2,500        2,850,925   
    

 

 

 
        12,127,047   

Illinois — 8.4%

    

Chicago Public Building Commission, RB, Series A (NPFGC), 7.00%, 1/01/20 (f)

     5,000        5,883,600   

City of Chicago Illinois, Refunding ARB, O’Hare International Airport Passenger Facility Charge, Series B, AMT, 4.00%, 1/01/29

     2,400        2,501,328   

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, 5.00%, 1/01/41

     1,735        1,935,895   

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

     1,000        1,092,350   

Illinois Finance Authority, RB, Rush University Medical Center, Series C, 6.63%, 5/01/19 (a)

     1,200        1,405,872   

Illinois Finance Authority, Refunding RB:

    

OSF Healthcare System, Series A, 6.00%, 5/15/39

     1,490        1,722,321   

Roosevelt University Project, 6.50%, 4/01/44

     1,500        1,661,610   

Railsplitter Tobacco Settlement Authority, RB:

    

6.25%, 6/01/24

     5,000        5,025,450   

6.00%, 6/01/28

     1,700        2,031,517   

State of Illinois, GO, 5.00%, 2/01/39

     1,000        1,055,130   
    

 

 

 
        24,315,073   

Iowa — 1.2%

    

Iowa Higher Education Loan Authority, Refunding RB, Private College Facility:

    

Drake University Project, 3.00%, 4/01/34

     1,000        1,006,800   

Upper Iowa University Project, 5.75%, 9/01/30

     965        1,020,960   

Upper Iowa University Project, 6.00%, 9/01/39

     1,500        1,583,445   
    

 

 

 
        3,611,205   

Kansas — 2.8%

    

County of Seward Kansas Unified School District No. 480, GO, Refunding, 5.00%, 9/01/39

     6,000        6,739,380   

Kansas Development Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 5.00%, 1/01/28

     1,155        1,293,173   
    

 

 

 
        8,032,553   
Municipal Bonds   

Par  

(000)

    Value  

Kentucky — 5.9%

    

Counties of Louisville & Jefferson Kentucky Metropolitan Government, Refunding RB, Jewish Hospital & St. Mary’s Healthcare, 6.13%, 2/01/18 (a)

   $ 2,250      $ 2,462,288   

Kentucky Bond Development Corp., Refunding RB, Saint Elizabeth Medical Center, Inc. (c):

    

4.00%, 5/01/35

     875        945,210   

4.00%, 5/01/36

     740        796,077   

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 1/01/40

     3,400        3,889,260   

Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/23 (e)

     8,500        7,001,535   

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C (d):

    

0.00%, 7/01/34

     1,000        829,900   

0.00%, 7/01/39

     1,395        1,129,643   
    

 

 

 
        17,053,913   

Louisiana — 2.2%

    

City of Alexandria Louisiana Utilities, RB, 5.00%, 5/01/39

     1,790        2,045,845   

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

     1,565        1,882,711   

Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.50%, 5/01/31

     600        683,766   

Louisiana Public Facilities Authority, Refunding RB, 4.00%, 11/01/45

     1,565        1,604,860   
    

 

 

 
               6,217,182   

Maryland — 0.8%

    

County of Anne Arundel Maryland Consolidated, Special Taxing District, Villages at Two Rivers Project:

    

5.13%, 7/01/36

     260        269,553   

5.25%, 7/01/44

     260        269,058   

County of Montgomery Maryland, RB, Trinity Health Credit Group, 5.00%, 12/01/45

     1,500        1,783,905   
    

 

 

 
               2,322,516   

Massachusetts — 0.9%

    

Massachusetts Development Finance Agency, RB, CareGroup Issue, Series I, 3.25%, 7/01/35 (c)

     460        458,040   

Massachusetts Development Finance Agency, Refunding RB:

    

Emerson College, 5.00%, 1/01/41

     1,200        1,363,368   

International Charter School, 5.00%, 4/15/40

     600        658,062   
    

 

 

 
               2,479,470   

Michigan — 3.5%

    

Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 7/01/44

     360        384,980   

Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32

     4,150        4,455,813   

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a)

     2,750        3,226,300   
 

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2016    17


Schedule of Investments (continued)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

 

Municipal Bonds   

Par  

(000)

    Value  

Michigan (continued)

    

State of Michigan Building Authority, Refunding RB, Facilities Program, Series I:

    

6.25%, 10/15/18 (a)

   $ 1,135      $ 1,285,944   

6.25%, 10/15/38

     740        832,330   
    

 

 

 
               10,185,367   

Minnesota — 2.1%

    

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

    

6.50%, 11/15/18 (a)

     345        393,866   

6.50%, 11/15/38

     1,905        2,146,363   

City of St. Cloud Minnesota, Refunding RB, CentraCare Health System, Series A, 3.25%, 5/01/39 (c)

     695        685,020   

Minnesota Higher Education Facilities Authority, RB, College of St. Benedict, Series 8-K:

    

5.00%, 3/01/37

     1,055        1,229,666   

4.00%, 3/01/43

     615        642,995   

Minnesota Higher Education Facilities Authority, Refunding RB, University of St. Thomas, Series 8-L:

    

3.00%, 4/01/36

     320        315,264   

4.00%, 4/01/39

     620        668,434   
    

 

 

 
               6,081,608   

Mississippi — 3.3%

    

County of Warren Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, 5.38%, 12/01/35

     600        668,880   

Mississippi Development Bank, RB, Special Obligation:

    

CAB, Hinds Community College District (AGM), 5.00%, 4/01/36

     1,910        2,135,456   

County of Jackson Limited Tax Note (AGC), 5.50%, 7/01/32

     2,655        2,976,202   

University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/19 (a)

     3,150        3,615,192   
    

 

 

 
               9,395,730   

Missouri — 2.2%

    

Missouri Development Finance Board, RB, Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41

     1,350        1,481,773   

Missouri State Health & Educational Facilities Authority, RB:

    

A.T. Still University of Health Sciences, 5.25%, 10/01/31

     500        576,570   

A.T. Still University of Health Sciences, 4.25%, 10/01/32

     480        524,995   

A.T. Still University of Health Sciences, 5.00%, 10/01/39

     750        859,328   

Heartland Regional Medical Center, 4.13%, 2/15/43

     1,100        1,150,127   

University of Central Missouri, Series C-2, 5.00%, 10/01/34

     1,500        1,742,640   
    

 

 

 
               6,335,433   

Montana — 0.1%

    

County of Gallatin School District No 7 Bozeman, GO, 3.00%, 6/01/36

     265        266,513   

Nebraska — 4.8%

    

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42

     900        988,992   

County of Douglas Nebraska Hospital Authority No. 2, RB, Madonna Rehabilitation Hospital Project, 4.00%, 5/15/33

     1,945        2,019,571   
Municipal Bonds   

Par  

(000)

    Value  

Nebraska (continued)

    

County of Douglas Nebraska Hospital Authority No. 3, Refunding RB, Health Facilities Nebraska Methodist Health System, 5.00%, 11/01/45

   $ 600      $ 683,694   

Lincoln Airport Authority, Refunding RB, Series A, 4.00%, 7/01/40

     780        841,792   

Nebraska Public Power District, Refunding RB, Series A:

    

5.00%, 1/01/32

     2,535        2,963,035   

4.00%, 1/01/44

     600        632,664   

Omaha School District, GO, 4.00%, 12/15/39

     1,750        1,900,133   

Public Power Generation Agency, Refunding RB (c):

    

3.13%, 1/01/35

     1,845        1,803,875   

3.25%, 1/01/36

     2,075        2,044,248   
    

 

 

 
               13,878,004   

Nevada — 0.9%

    

County of Clark Nevada, Refunding ARB, Department of Aviation, Subordinate Lien, Series A-2, 4.25%, 7/01/36

     1,500        1,609,065   

County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29

     1,065        1,091,029   
    

 

 

 
               2,700,094   

New Jersey — 6.5%

    

County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (g)(h)

     1,510        59,645   

New Jersey EDA, RB, AMT:

    

Continental Airlines, Inc. Project, 5.25%, 9/15/29

     1,335        1,477,671   

Continental Airlines, Inc. Project, Series B, 5.63%, 11/15/30

     990        1,134,194   

Goethals Bridge Replacement Project (AGM), 5.13%, 7/01/42

     300        333,606   

New Jersey Educational Facilities Authority, Refunding RB:

    

College of New Jersey, 3.50%, 7/01/31

     1,825        1,895,554   

University of Medicine & Dentistry, Series B, 7.50%, 6/01/19 (a)

     1,225        1,467,967   

New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Barnabas Health Care System, Series A:

    

4.63%, 7/01/23

     770        866,620   

5.00%, 7/01/25

     500        585,890   

5.63%, 7/01/37

     2,560        2,975,462   

New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series AA, 6.50%, 10/01/38

     85        87,902   

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 1/01/45

     2,780        3,210,872   

New Jersey Transportation Trust Fund Authority, RB:

    

CAB, Transportation System, Series A, 0.00%, 12/15/35 (e)

     1,600        615,136   

Transportation Program, Series AA, 5.00%, 6/15/44

     1,850        1,962,702   

Transportation Program, Series AA, 5.00%, 6/15/45

     1,350        1,433,228   

Transportation Program, Series AA, 5.00%, 6/15/46

     600        636,522   
    

 

 

 
        18,742,971   

New Mexico — 0.3%

  

New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%, 8/01/44

     680        790,962   
 

 

See Notes to Financial Statements.

 

                
18    ANNUAL REPORT    APRIL 30, 2016   


Schedule of Investments (continued)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

 

Municipal Bonds   

Par  

(000)

    Value  

New York — 7.1%

  

City of New York New York, GO, Fiscal 2014, Sub-Series A-1, 5.00%, 8/01/35

   $ 2,380      $ 2,828,082   

City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT, 7.63%, 8/01/25 (i)

     2,600        2,671,526   

City of New York New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium:

    

(AMBAC), 5.00%, 1/01/39

     1,100        1,120,922   

(AGC), 6.50%, 1/01/46

     300        341,259   

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (b)

     1,400        1,474,914   

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45

     1,825        1,816,605   

Hudson Yards Infrastructure Corp., RB, Series A (AGM), 5.00%, 2/15/47

     500        515,380   

Long Island Power Authority, Refunding RB, Electric System, Series A, 5.75%, 4/01/39

     2,475        2,770,292   

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/39

     3,495        4,228,251   

New York Liberty Development Corp., Refunding RB:

    

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

     1,250        1,406,650   

3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (b)

     640        702,522   

Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (b)

     600        608,964   
    

 

 

 
        20,485,367   

North Carolina — 1.4%

  

County of Gaston North Carolina Industrial Facilities & Pollution Control Financing Authority, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35

     2,175        2,179,241   

North Carolina Medical Care Commission, Refunding RB, University Health System, Series D, 6.25%, 12/01/18 (a)

     1,750        1,994,598   
    

 

 

 
        4,173,839   

North Dakota — 0.6%

  

City of Fargo North Dakota, GO, Series D, 4.00%, 5/01/37

     795        858,632   

County of Burleigh North Dakota, Refunding RB, St. Alexius Medical Center Project, Series A, 5.00%, 7/01/21 (a)

     720        857,995   
    

 

 

 
        1,716,627   

Ohio — 1.1%

  

City of Dayton Ohio Airport Revenue, Refunding ARB, James M Cox Dayton International Airport, AMT, 4.00%, 12/01/32

     3,000        3,157,230   

Oklahoma — 1.2%

    

Oklahoma City Public Property Authority, Refunding RB:

    

5.00%, 10/01/36

     800        929,032   

5.00%, 10/01/39

     280        322,187   

Oklahoma Municipal Power Authority, RB, Power Supply System, Series A, 4.00%, 1/01/38

     570        607,056   

Oklahoma Water Resources Board, RB, Clean Water Program, 4.00%, 4/01/40

     1,475        1,608,989   
    

 

 

 
        3,467,264   
Municipal Bonds   

Par  

(000)

    Value  

Oregon — 2.1%

  

County of Lane Oregon School District No. 19 Springfield, GO, CAB, Series B, 0.00%, 6/15/40 (e)

   $ 1,500      $ 631,845   

Oregon Health & Science University, RB, Series A, 5.75%, 7/01/19 (a)

     1,250        1,440,863   

Oregon Health & Science University, Refunding RB, Series B, 4.00%, 7/01/46

     925        999,638   

State of Oregon State Facilities Authority, Refunding RB, Series A, 5.00%, 4/01/45

     2,485        2,865,155   
    

 

 

 
        5,937,501   

Pennsylvania — 3.8%

  

County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27

     2,535        2,350,477   

Delaware River Port Authority, RB:

    

4.50%, 1/01/32

     3,000        3,411,930   

Series D (AGM), 5.00%, 1/01/40

     3,640        4,100,424   

Mckeesport Area School District, GO, CAB, Refunding (NPFGC), 0.00%, 10/01/31 (e)(f)

     500        357,345   

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

     810        850,370   
    

 

 

 
        11,070,546   

Rhode Island — 4.3%

  

Rhode Island Health & Educational Building Corp., RB, Hospital Financing, LifeSpan Obligation, Series A (AGC), 7.00%, 5/15/39

     3,000        3,468,810   

Rhode Island Infrastructure Bank, RB, Green Bonds, Series A, 3.00%, 10/01/32

     120        123,606   

Rhode Island Turnpike & Bridge Authority, Refunding RB, Series A:

    

4.00%, 10/01/36

     1,320        1,421,944   

5.00%, 10/01/40

     1,845        2,161,325   

State of Rhode Island, COP, School for the Deaf Project, Series C (AGC), 5.38%, 4/01/28

     1,330        1,470,355   

Tobacco Settlement Financing Corp., Refunding RB:

    

Series A, 5.00%, 6/01/40

     1,000        1,097,110   

Series B, 4.50%, 6/01/45

     2,725        2,825,770   
    

 

 

 
        12,568,920   

Tennessee — 3.5%

  

Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/40

     2,945        3,342,870   

County of Chattanooga-Hamilton Tennessee Hospital Authority, Refunding RB, 5.00%, 10/01/44

     875        982,896   

County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A:

    

5.25%, 11/01/27

     1,135        1,284,945   

5.38%, 11/01/28

     1,000        1,141,170   

Johnson City Health & Educational Facilities Board, RB, Mountain States Health, Series A, 5.00%, 8/15/42

     1,200        1,319,328   

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, Series A:

    

RB, Vanderbilt University Medical Center, 5.00%, 7/01/40

     1,075        1,250,967   

Refunding RB, Lipscomb University Project, 5.00%, 10/01/45

     610        692,740   
    

 

 

 
        10,014,916   
 

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2016    19


Schedule of Investments (continued)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

 

Municipal Bonds   

Par  

(000)

    Value  

Texas — 8.0%

  

County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B (a):

    

7.13%, 12/01/18

   $ 1,000      $ 1,161,920   

7.25%, 12/01/18

     2,650        3,087,542   

County of Harris Texas-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC), 0.00%, 11/15/38 (e)

     5,000        1,856,950   

County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co., Project, Series A, 6.30%, 11/01/29

     2,200        2,501,752   

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/38 (e)

     16,780        6,686,830   

Leander ISD, GO, Refunding, Go, Refunding, CAB, Series D, 0.00%, 8/15/35 (e)

     6,000        2,961,120   

Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38

     1,140        1,359,974   

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, 7.00%, 6/30/40

     3,000        3,595,740   
    

 

 

 
        23,211,828   

U.S. Virgin Islands — 0.6%

  

Virgin Islands Public Finance Authority, Refunding RB, Virgin Islands Gross Receipts, Series C, 4.50%, 10/01/44

     1,665        1,710,788   

Utah — 0.2%

    

Utah State Charter School Finance Authority, Refunding RB, Mountainville Academy, 4.00%, 4/15/42

     600        621,102   

Vermont — 2.7%

    

University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/37

     4,245        4,614,782   

Vermont Educational & Health Buildings Financing Agency, Refunding RB, Fletcher Allen Health Hospital, Series B (AGM), 5.00%, 6/01/18 (a)

     1,820        1,979,468   

Vermont Student Assistance Corp., RB, AMT, Series A, 4.25%, 6/15/32

     1,050        1,109,819   
    

 

 

 
        7,704,069   

Virginia — 0.7%

  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37

     1,755        2,077,446   

Washington — 0.8%

    

Washington Health Care Facilities Authority, RB, MultiCare Health System, Series B (AGC), 6.00%, 8/15/19 (a)

     2,100        2,448,915   

West Virginia — 0.8%

    

County of Berkeley Public Service Sewer District, Refunding RB:

    

5.00%, 6/01/36

     615        713,818   

3.25%, 6/01/41

     615        595,093   

3.38%, 6/01/46

     920        906,071   
    

 

 

 
        2,214,982   

Wisconsin — 0.9%

  

State of Wisconsin Health & Educational Facilities Authority, Refunding RB, Medical College of Wisconsin, Inc., 4.00%, 12/01/46 (c)

     955        1,001,690   
Municipal Bonds   

Par  

(000)

    Value  

Wisconsin (continued)

  

WPPI Energy Power Supply Systems, Refunding RB, Series A, 5.00%, 7/01/37

   $ 1,330      $ 1,548,692   
    

 

 

 
        2,550,382   
Total Municipal Bonds — 133.7%        386,421,215   
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (j)
        

California — 1.8%

  

State of California, GO, Go, Various Purpose (NPFGC), 5.00%, 6/01/37

     5,000        5,240,050   

Colorado — 2.0%

  

Colorado Health Facilities Authority, RB, Catholic Health, Series C-7 (AGM), 5.00%, 5/01/18 (a)

     5,250        5,695,883   

Connecticut — 1.6%

  

Connecticut State Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45

     3,902        4,580,195   

Minnesota — 2.0%

    

State of Minnesota, RB, Series A, 5.00%, 6/01/38

     5,000        5,885,447   

New Jersey — 1.1%

    

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (k)

     2,861        3,079,757   

New York — 9.1%

    

City of New York New York, GO, Fiscal 2015, Series B, 4.00%, 8/01/32

     1,600        1,786,832   

City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A, 5.75%, 6/15/40

     690        762,090   

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System:

    

2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47

     4,000        4,709,351   

2nd General Resolution, Series FF-2, 5.50%, 6/15/40

     810        918,129   

Series A, 4.75%, 6/15/30

     4,000        4,178,400   

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (k)

     1,750        2,057,339   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

     4,500        5,345,709   

State of New York Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/18 (a)

     3,359        3,664,500   

State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 3/15/31

     2,360        2,778,192   
    

 

 

 
        26,200,542   

Ohio — 1.6%

  

County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 4/28/18 (a)

     1,740        1,886,108   

Ohio Higher Educational Facility Commission, RB, Cleveland Clinic Health, Series A, 5.25%, 1/01/33

     2,600        2,792,218   
    

 

 

 
        4,678,326   
 

 

See Notes to Financial Statements.

 

                
20    ANNUAL REPORT    APRIL 30, 2016   


Schedule of Investments (continued)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (j)

  

Par  

(000)

    Value  

Texas — 0.9%

    

City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43

   $ 2,380      $ 2,766,917   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 20.1%
        58,127,117   
Total Long-Term Investments
(Cost — $395,093,360) — 153.8%
        444,548,332   
Short-Term Securities    Shares     Value  

BlackRock Liquidity Funds, MuniCash, 0.19% (l)(m)

     1,080,099      $ 1,080,099   
Total Short-Term Securities
(Cost — $1,080,099) — 0.4%
        1,080,099   
Total Investments (Cost — $396,173,459) — 154.2%        445,628,431   
Other Assets Less Liabilities — 0.2%        577,201   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (10.8)%

   

    (31,303,092
VMTP Shares, at Liquidation Value — (43.6)%        (125,900,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 289,002,540   
    

 

 

 
 
Notes to Schedule of Investments      

 

(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)   When-issued security.

 

(d)   Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

 

(e)   Zero-coupon bond.

 

(f)   Security is collateralized by municipal bonds or U.S. Treasury obligations.

 

(g)   Issuer filed for bankruptcy and/or is in default of interest payments.

 

(h)   Non-income producing security.

 

(i)   Variable rate security. Rate as of period end.

 

(j)   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. See Note 4 of the Notes to Financial Statements for details.

 

(k)   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 agreements, which expire between February 15, 2019 to June 15, 2019, is $3,148,884. See Note 4 of the Notes to Financial Statements for details.

 

(l)   During the year ended April 30, 2016, 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      Shares Held
at April 30,
2015
       Net
Activity
    Shares Held
at April 30,
2016
       Income  

BlackRock Liquidity Funds, MuniCash

                 1,080,099        1,080,099         $ 1,293   

FFI Institutional Tax-Exempt Fund

       4,608,232           (4,608,232               854   

Total

              1,080,099         $ 2,147   
           

 

 

 

 

(m)   Current yield as of period end.

 

Derivative Financial Instruments Outstanding as of Period End      

Futures Contracts

 

Contracts
Short
    Issue    Expiration    Notional
Value
  Unrealized
Appreciation
      
  (11   5-Year U.S. Treasury Note    June 2016    $1,330,055   $ 4,799     
  (58   10-Year U.S. Treasury Note    June 2016    $7,543,625     31,135     
  (39   Long U.S. Treasury Bond    June 2016    $6,369,187     92,171     
  (8   Ultra U.S. Treasury Bond    June 2016    $1,370,750     23,121       
  Total              $ 151,226     
         

 

 

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2016    21


Schedule of Investments (concluded)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

 

 

Derivative Financial Instruments Categorized by Risk Exposure      

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

Assets — Derivative Financial Instruments   Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Futures contracts

 

Net unrealized appreciation1

                                  $ 151,226               $ 151,226   

1    Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

        

For the year ended April 30, 2016, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

Net Realized Gain (Loss) from:    Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Futures contracts

                                   $ (1,008,666            $ (1,008,666
                    
Net Change in Unrealized Appreciation (Depreciation) on:                                                        

Futures contracts

                                   $ 545,661               $ 545,661   

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments                
Futures contracts:   

Average notional value of contracts — short

   $ 19,626,451   

For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

Fair Value Hierarchy as of Period End            

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 444,548,332                   $ 444,548,332   

Short-Term Securities

  $ 1,080,099                               1,080,099   
 

 

 

      

 

 

      

 

 

      

 

 

 

Total

  $ 1,080,099         $ 444,548,332                   $ 445,628,431   
 

 

 

      

 

 

      

 

 

      

 

 

 
                
Derivative Financial Instruments2                                         

Assets:

                

Interest rate contracts

  $ 151,226                             $ 151,226   

1   See above Schedule of Investments for values in each state or political subdivision.

      

2   Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

      

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement 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  

Assets:

                

Cash pledged for futures contracts

  $ 259,050                             $ 259,050   

Liabilities:

                

Bank overdraft

            $ (144,579                  (144,579

TOB Trust Certificates

              (31,286,067                  (31,286,067

VMTP Shares

              (125,900,000                  (125,900,000
 

 

 

      

 

 

      

 

 

      

 

 

 

Total

  $ 259,050         $ (157,330,646                $ (157,071,596
 

 

 

      

 

 

      

 

 

      

 

 

 

During the year ended April 30, 2016, there were no transfers between levels.

 

See Notes to Financial Statements.

 

                
22    ANNUAL REPORT    APRIL 30, 2016   


Schedule of Investments April 30, 2016

  

BlackRock Long-Term Municipal Advantage Trust  (BTA)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 2.0%

    

County of Jefferson Alabama, RB, Limited Obligation School, Series A, 5.25%, 1/01/19

   $ 515      $ 518,090   

County of Jefferson Alabama Sewer, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42

     1,655        1,941,547   

Lower Alabama Gas District, RB, Series A, 5.00%, 9/01/46

     720        917,669   
    

 

 

 
        3,377,306   

Arizona — 1.8%

    

City of Phoenix Arizona IDA, RB, Series A:

    

Great Hearts Academies Project, 5.00%, 7/01/44

     1,000        1,084,300   

Facility, Eagle College Preparatory Project, 5.00%, 7/01/33

     870        904,087   

City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A (a):

    

5.00%, 7/01/35

     125        132,540   

5.00%, 7/01/46

     135        140,400   

Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37

     725        903,930   
    

 

 

 
        3,165,257   

California — 13.8%

    

California Health Facilities Financing Authority, RB:

    

St. Joseph Health System, Series A, 5.75%, 7/01/39

     385        439,747   

Sutter Health, Series B, 6.00%, 8/15/42

     1,040        1,249,290   

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39

     680        777,396   

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

    

5.25%, 8/15/39

     70        79,396   

5.25%, 8/15/49

     175        197,720   

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A, 5.25%, 12/01/56 (b)

     2,060        2,239,406   

California Statewide Communities Development Authority, Refunding RB, CHF-Irvine, LLC, 5.00%, 5/15/40

     1,210        1,418,519   

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:

    

Senior, 5.00%, 5/15/40

     2,045        2,323,509   

5.25%, 5/15/39

     270        302,635   

City of San Francisco California Public Utilities Commission Water Revenue, RB, Series B, 5.00%, 11/01/39

     3,225        3,640,283   

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38

     165        206,295   

County of California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.:

    

5.60%, 6/01/36

     2,000        2,025,600   

5.70%, 6/01/46

     1,000        1,012,810   

San Marcos Unified School District, GO, CAB, SAN, Election of 2010, Series B, 0.00%, 8/01/38 (c)

     3,725        1,594,188   

State of California, GO, Various Purposes, 6.50%, 4/01/33

     2,000        2,330,500   

State of California Public Works Board, LRB, Various Capital Projects:

    

Series I, 5.00%, 11/01/38

     355        423,426   

Sub-Series I-1, 6.38%, 11/01/34

     400        478,392   
Municipal Bonds   

Par  

(000)

    Value  

California (continued)

    

Tobacco Securitization Authority of Southern California, Refunding RB:

    

Senior Series A1, 5.00%, 6/01/37

   $ 2,125      $ 2,124,809   

Tobacco Settlement, Asset-Backed, Senior Series A-1, 5.13%, 6/01/46

     1,005        1,001,432   
    

 

 

 
        23,865,353   

Colorado — 4.2%

    

Colorado Health Facilities Authority, Refunding RB, Series A:

    

6.13%, 12/01/45 (a)

     160        166,037   

6.25%, 12/01/50 (a)

     520        538,538   

Sisters of Charity of Leavenworth Health System, 5.00%, 1/01/40

     3,940        4,366,702   

North Range Metropolitan District No. 2, GO, Limited Tax, 5.50%, 12/15/37

     1,200        1,214,244   

Table Mountain Metropolitan District, GO, Series A, 5.25%, 12/01/45

     1,000        1,010,280   
    

 

 

 
        7,295,801   

Connecticut — 0.5%

    

Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 2/01/30 (a)

     860        876,048   

Delaware — 2.2%

    

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

     750        820,185   

Delaware Transportation Authority, RB, 5.00%, 6/01/55

     580        662,737   

State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45

     2,240        2,352,515   
    

 

 

 
        3,835,437   

District of Columbia — 1.9%

    

District of Columbia, Refunding RB, Kipp Charter School, Series A, 6.00%, 7/01/43

     260        302,692   

District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 6/01/41

     750        854,093   

District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.25%, 5/15/24

     900        902,322   

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:

    

5.00%, 10/01/39

     170        188,977   

5.25%, 10/01/44

     1,000        1,115,930   
    

 

 

 
        3,364,014   

Florida — 4.7%

    

City of Tampa Florida, RB, Baycare Health System, Series A, 4.00%, 11/15/46

     845        895,337   

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 5/01/45

     645        731,972   

County of Miami-Dade Florida Water & Sewer System Revenue, RB, Water & Sewer System, 5.00%, 10/01/34

     1,950        2,230,819   

Lakewood Ranch Stewardship District, Special Assessment Bonds, Village of Lakewood Ranch Sector Projects:

    

4.00%, 5/01/21

     100        101,955   

4.25%, 5/01/26

     100        101,467   

5.00%, 5/01/36

     215        220,620   

5.13%, 5/01/46

     430        443,416   
 

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2016    23


Schedule of Investments (continued)

  

BlackRock Long-Term Municipal Advantage Trust  (BTA)

 

Municipal Bonds   

Par  

(000)

    Value  

Florida (continued)

    

Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21 (d)

   $ 1,080      $ 1,415,027   

Tolomato Community Development District, Refunding, Special Assessment Bonds:

    

Convertible CAB, Series A2, 0.00%, 5/01/39 (e)

     95        76,170   

Convertible CAB, Series A3, 0.00%, 5/01/40 (e)

     225        134,847   

Convertible CAB, Series A4, 0.00%, 5/01/40 (e)

     120        53,274   

Series 2, 0.00%, 5/01/40 (e)

     310        162,183   

Series A1, 6.65%, 5/01/40

     355        359,065   

Tolomato Community Development District:

    

Series 1, 0.00%, 5/01/40 (e)

     505        312,277   

Series 1, 6.65%, 5/01/40 (f)(g)

     15        15,321   

Series 3, 6.61%, 5/01/40 (f)(g)

     340        3   

Series 3, 6.65%, 5/01/40 (f)(g)

     275        3   

Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43

     830        925,790   
    

 

 

 
        8,179,546   

Georgia — 0.6%

    

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

     240        289,759   

Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project, Series A, 5.00%, 7/01/60

     715        810,095   
    

 

 

 
        1,099,854   

Guam — 0.8%

    

Guam Government Waterworks Authority, RB, Water & Wastewater System, 5.50%, 7/01/43

     1,065        1,239,351   

Territory of Guam, GO, Series A, 6.00%, 11/15/19

     165        182,724   
    

 

 

 
        1,422,075   

Idaho — 0.1%

    

Boise State University, Refunding RB, Series A, 3.13%, 4/01/39

     220        218,009   

Illinois — 11.1%

    

City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series A, 5.75%, 1/01/39

     2,500        2,914,900   

City of Chicago Illinois, GO, Refunding, Project, Series A, 5.25%, 1/01/32

     1,090        1,080,724   

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

     360        393,246   

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42

     1,625        1,766,700   

City of Springfield Illinois Electric Revenue, Refunding RB, 5.00%, 3/01/40

     2,200        2,526,414   

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

     350        397,786   

Illinois Finance Authority, RB, Advocate Health Care Network:

    

5.38%, 4/01/19 (d)

     870        983,109   

5.38%, 4/01/44

     975        1,066,192   

Illinois Finance Authority, Refunding RB, Central Dupage Health, Series B, 5.50%, 11/01/39

     550        627,693   

Illinois State Toll Highway Authority, RB:

    

Series A, 5.00%, 1/01/38

     815        927,120   

Series B, 5.00%, 1/01/40

     770        901,246   
Municipal Bonds   

Par  

(000)

    Value  

Illinois (continued)

    

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:

    

Refunding Bonds, Series B-2, 5.25%, 6/15/50

   $ 1,000      $ 1,059,180   

Series B (AGM), 5.00%, 6/15/50

     1,790        1,914,315   

Series B-2, 5.00%, 6/15/50

     625        654,837   

State of Illinois, GO, 5.00%, 2/01/39

     745        786,072   

State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34

     215        238,510   

University of Illinois, RB, Auxiliary Facilities System, Series A:

    

5.00%, 4/01/39

     390        439,062   

5.00%, 4/01/44

     475        531,582   
    

 

 

 
        19,208,688   

Indiana — 5.4%

    

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

    

6.75%, 1/01/34

     365        447,497   

7.00%, 1/01/44

     885        1,091,780   

City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village Project, 6.25%, 1/01/29 (a)

     1,185        1,185,984   

Indiana Finance Authority, RB, Series A:

    

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

     1,285        1,517,032   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

     160        173,725   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48

     520        562,219   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 1/01/51

     2,190        2,396,232   

Sisters of St. Francis Health Services, 5.25%, 11/01/39

     290        324,577   

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A, 5.75%, 5/01/31

     600        680,736   

Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/19 (d)

     350        397,418   

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 1/15/40

     445        518,705   
    

 

 

 
        9,295,905   

Iowa — 2.3%

    

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:

    

5.50%, 12/01/22

     830        863,823   

5.25%, 12/01/25

     660        710,384   

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

     660        701,606   

Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 6/01/46

     1,765        1,764,806   
    

 

 

 
        4,040,619   

Kentucky — 0.6%

    

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

     440        498,023   

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43 (e)

     565        454,249   
    

 

 

 
        952,272   
 

 

See Notes to Financial Statements.

 

                
24    ANNUAL REPORT    APRIL 30, 2016   


Schedule of Investments (continued)

  

BlackRock Long-Term Municipal Advantage Trust  (BTA)

 

Municipal Bonds   

Par  

(000)

    Value  

Louisiana — 3.6%

    

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project:

    

6.75%, 11/01/32

   $ 2,000      $ 2,167,000   

Series A-1, 6.50%, 11/01/35

     1,135        1,365,416   

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

    

5.50%, 5/15/30

     350        393,246   

5.25%, 5/15/31

     300        337,128   

5.25%, 5/15/32

     380        432,611   

5.25%, 5/15/33

     415        465,165   

5.25%, 5/15/35

     945        1,064,524   
    

 

 

 
        6,225,090   

Maine — 0.6%

    

Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 7/01/41

     970        1,102,667   

Maryland — 1.0%

    

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35

     970        1,061,616   

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25

     645        621,851   
    

 

 

 
        1,683,467   

Massachusetts — 5.0%

    

Massachusetts Development Finance Agency, RB:

    

Boston Medical Center, Series D, 5.00%, 7/01/44

     3,000        3,382,950   

North Hill Communities Issue, Series A, 6.50%, 11/15/43 (a)

     1,000        1,089,150   

Seven Hills Foundation and Affiliates, 5.00%, 9/01/45

     2,000        2,137,420   

Massachusetts Development Finance Agency, Refunding RB, Emerson College, 5.00%, 1/01/41

     1,865        2,118,901   
    

 

 

 
        8,728,421   

Michigan — 1.5%

    

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39

     1,970        2,192,137   

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

     410        448,138   
    

 

 

 
        2,640,275   

Minnesota — 0.1%

    

City of Brooklyn Park Minnesota, RB, Athlos Leadership Academy Project, 5.75%, 7/01/46

     180        183,892   

Missouri — 0.1%

    

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

     85        96,670   

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43

     115        128,574   
    

 

 

 
        225,244   

Nebraska — 0.5%

    

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37

     285        320,180   

Public Power Generation Agency, Refunding RB, 5.00%, 1/01/37 (b)

     520        611,515   
    

 

 

 
        931,695   
Municipal Bonds   

Par  

(000)

    Value  

New Jersey — 7.6%

    

Casino Reinvestment Development Authority, Refunding RB:

    

5.00%, 11/01/22

   $ 2,035      $ 2,204,251   

5.25%, 11/01/39

     475        492,133   

5.25%, 11/01/44

     1,160        1,195,287   

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45 (a)

     505        515,206   

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 5.13%, 9/15/23

     1,410        1,571,995   

New Jersey EDA, Refunding RB:

    

5.00%, 6/15/19

     300        325,083   

Cigarette Tax, 5.00%, 6/15/23

     1,250        1,391,512   

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31

     785        919,730   

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 1/01/45

     1,215        1,403,313   

New Jersey Transportation Trust Fund Authority, RB:

    

Transportation Program, Series AA, 5.00%, 6/15/44

     1,625        1,723,995   

Transportation System, Series B, 5.25%, 6/15/36

     845        909,719   

Tobacco Settlement Financing Corp., Refunding RB, Series 1A, 5.00%, 6/01/41

     500        472,470   
    

 

 

 
        13,124,694   

New York — 30.0%

    

City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT, 7.63%, 8/01/25 (h)

     4,000        4,110,040   

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series HH, 5.00%, 6/15/31

     2,830        3,332,806   

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (a)

     900        948,159   

County of Dutchess New York IDA, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 8/01/46

     1,500        1,432,410   

County of Nassau Tobacco Settlement Corp., Refunding RB, Asset-Backed, Series A-3, 5.13%, 6/01/46

     550        521,967   

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45

     910        905,814   

Hudson Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47

     6,510        7,654,002   

Metropolitan Transportation Authority, RB, Series B:

    

5.25%, 11/15/38

     1,125        1,363,770   

5.25%, 11/15/39

     400        483,920   

Metropolitan Transportation Authority, Refunding RB, Transportation Revenue Green Bonds, Series A-1, 5.25%, 11/15/56

     1,430        1,719,604   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43

     6,140        7,294,136   

New York Liberty Development Corp., Refunding RB:

    

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

     420        472,634   

3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (a)

     2,355        2,550,559   

3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (a)

     160        175,630   

3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (a)

     395        435,176   
 

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2016    25


Schedule of Investments (continued)

  

BlackRock Long-Term Municipal Advantage Trust  (BTA)

 

Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

    

New York Liberty Development Corp., Refunding RB (continued):

    

4 World Trade Center Project, 5.75%, 11/15/51

   $ 2,220      $ 2,649,681   

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/42

     730        856,779   

State of New York Dormitory Authority, RB:

    

Series A, 5.25%, 7/01/18 (d)

     1,000        1,097,680   

Series B, 5.75%, 3/15/36

     11,250        12,827,475   

Westchester Tobacco Asset Securitization, Refunding RB, 5.13%, 6/01/45

     1,100        1,100,011   
    

 

 

 
        51,932,253   

North Carolina — 0.5%

    

North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/42

     480        534,177   

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41

     260        297,812   
    

 

 

 
        831,989   

Ohio — 5.2%

    

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Series A-2:

    

Senior Turbo Term, 5.88%, 6/01/47

     1,260        1,219,088   

5.75%, 6/01/34

     2,295        2,188,512   

County of Allen Ohio, Refunding RB, Series A, 4.00%, 11/01/44

     1,170        1,222,358   

County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38

     2,650        2,974,280   

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 6/30/53

     1,220        1,338,108   
    

 

 

 
        8,942,346   

Pennsylvania — 1.3%

    

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/42

     300        329,163   

Pennsylvania Economic Development Financing Authority, RB, Pennsylvania Bridge Finco LP, AMT, 5.00%, 12/31/38

     465        524,227   

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

     720        755,885   

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

     520        597,792   
    

 

 

 
        2,207,067   

Puerto Rico — 0.9%

    

Children’s Trust Fund, Refunding RB, Asset-Backed:

    

5.50%, 5/15/39

     40        40,000   

5.63%, 5/15/43

     1,475        1,473,319   
    

 

 

 
        1,513,319   

Rhode Island — 2.2%

    

Tobacco Settlement Financing Corp., Refunding RB:

    

Series A, 5.00%, 6/01/40

     420        460,786   

Series B, 4.50%, 6/01/45

     1,875        1,944,338   

Series B, 5.00%, 6/01/50

     1,360        1,442,511   
    

 

 

 
        3,847,635   
Municipal Bonds   

Par  

(000)

    Value  

South Carolina — 3.4%

    

State of South Carolina Ports Authority, RB, AMT:

    

5.00%, 7/01/45

   $ 750      $ 852,712   

5.25%, 7/01/55

     940        1,065,452   

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

     1,830        2,149,189   

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

     1,560        1,829,272   
    

 

 

 
        5,896,625   

Texas — 6.6%

    

Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 (f)(g)

 &nbs