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: 04/30/2018

Date of reporting period: 10/31/2017


Item 1 – Report to Stockholders


OCTOBER 31, 2017

 

 

SEMI-ANNUAL REPORT (UNAUDITED)

 

    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


The Markets in Review

Dear Shareholder,

In the 12 months ended October 31, 2017, risk assets, such as stocks and high-yield bonds, continued to deliver strong performance. These markets showed great resilience during a period with big political surprises, including the aftermath of the U.K.’s vote to leave the European Union and the outcome of the U.S. presidential election, which brought only brief spikes in equity market volatility. In contrast, closely watched elections in France, the Netherlands, and Australia countered the isolationist and nationalist political developments in the U.K. and the United States.

Interest rates rose, which worked against high-quality assets with more interest rate sensitivity. Consequently, longer-term U.S. Treasuries posted negative returns, as rising energy prices, modest wage increases, and steady job growth led to expectations of higher inflation and further interest rate increases by the U.S. Federal Reserve (the “Fed”).

The market’s performance reflected reflationary expectations early in the reporting period, as investors began to sense that a global recovery was afoot. Thereafter, many countries throughout the world experienced sustained and synchronized growth for the first time since the financial crisis. Growth rates and inflation are still relatively low, but they are finally rising together.

The Fed responded to these positive developments by increasing short-term interest rates three times and setting expectations for additional interest rate increases. The Fed also began reducing the vast balance sheet reserves that had accumulated in the wake of the financial crisis. In October 2017, the Fed reduced its $4.5 trillion balance sheet by only $10 billion, while setting expectations for additional modest reductions and rate hikes in 2018.

By contrast, the European Central Bank (“ECB”) and the Bank of Japan (“BoJ”) both continued to expand their balance sheets despite nascent signs of sustained economic growth. The Eurozone and Japan are both approaching the limits of central banks’ ownership share of debt issued by their respective governments, which is a structural pressure point that limits their capacity to deliver additional monetary stimulus. In October 2017, the ECB announced plans to cut the amount of its bond purchases in half for 2018, while the BoJ reiterated its commitment to economic stimulus until the inflation rate rises to its target of 2.0%.

Emerging market growth also stabilized, as accelerating growth in China, the second largest economy in the world and the most influential of all developing economies, improved the outlook for corporate profits and economic growth across most developing nations. Chinese demand for commodities and other raw materials allayed concerns about the country’s banking system, leading to rising equity prices and foreign investment flows.

While escalating tensions between the United States and North Korea and our nation’s divided politics are significant concerns, benign credit conditions, modest inflation, solid corporate earnings, and the positive outlook for growth in the world’s largest economies have kept markets relatively tranquil.

High valuations across most assets have laid the groundwork for muted returns going forward. At current valuation levels, potential equity gains will likely be closely tied to the pace of earnings growth, which has remained solid thus far in 2017, particularly in emerging markets. In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. 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 October 31, 2017
     6-month   12-month

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

  9.10%   23.63%

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

  8.01   27.85

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

  10.74   23.44

Emerging market equities
(MSCI Emerging Markets Index)

  16.14   26.45

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

  0.49   0.72

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

  0.15   (2.98)

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

  1.58   0.90

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

  2.22   1.80

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

  3.44   8.92
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT


Table of Contents

 

      Page  

The Markets in Review

     2  

Semi-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

     49  

Statements of Operations

     50  

Statements of Changes in Net Assets

     51  

Statements of Cash Flows

     54  

Financial Highlights

     55  

Notes to Financial Statements

     60  

Disclosure of Investment Advisory Agreement

     70  

Trustee and Officer Information

     74  

Additional Information

     75  

Glossary of Terms Used in this Report

     77  

 

 

     3  


Municipal Market Overview  For the Reporting Period Ended October 31, 2017

 

Municipal Market Conditions

Municipal bonds experienced modestly positive performance for the period as a result of rising interest rates spurring from generally stronger economic data, signs of inflation pressures, Fed monetary policy normalization, and market expectations for pro-growth fiscal policy. However, ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in continued demand for fixed income investments. More specifically, investors favored the income, attractive relative yield, and stability of municipal bonds amid bouts of interest rate volatility (bond prices rise as rates fall) resulting from geopolitical tensions, the contentious U.S. election, and evolving global central bank policies. During the 12 months ended October 31, 2017, municipal bond funds experienced net outflows of approximately $3 billion (based on data from the Investment Company Institute). The asset class came under pressure post the November U.S. election as a result of uncertainty surrounding potential tax-reform, though expectation that tax reform was likely to be delayed or watered down quickly eased investor concerns.

 

For the same 12-month period, total new issuance remained healthy from a historical perspective at $376 billion (though well below the robust $441 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 51%) as issuers continued to take advantage of low interest rates and a flat yield curve to reduce their borrowing costs.   S&P Municipal Bond Index
  Total Returns as of October 31, 2017
    6 months: 2.22%
  12 months: 1.80%

A Closer Look at Yields

 

LOGO

From October 31, 2016 to October 31, 2017, yields on AAA-rated 30-year municipal bonds increased by 27 basis points (“bps”) from 2.56% to 2.83%, while 10-year rates rose by 28 bps from 1.73% to 2.01% and 5-year rates increased 29 bps from 1.13% to 1.42% (as measured by Thomson Municipal Market Data). The municipal yield curve steepened modestly over the 12-month period with the spread between 2- and 30-year maturities steepening by just 2 bps.

During the same time period, on a relative basis, tax-exempt municipal bonds strongly outperformed U.S. Treasuries with the greatest outperformance experienced in the front and intermediate portions of the yield curve. The relative positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities became increasingly scarce. 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 October 31, 2017, 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 U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. 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.

 

 

4    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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 such 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 the Trusts’ intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Trust’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Trust’s Common Shares than if the Trust were not leveraged. In addition, each Trust 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 Trust 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. Each Trust incurs 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 adviser will be higher than if the Trusts did not use leverage.

To obtain leverage, each Trust has issued Variable Rate Demand Preferred Shares (“VRDP Shares”), 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 13% 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), then the TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements imposed by 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 assets 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 adviser’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.

 

 

THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS      5  


Trust Summary  as of October 31, 2017    BlackRock Investment Quality Municipal Trust, Inc.

 

Investment Objective

BlackRock Investment Quality Municipal Trust, Inc.’s (BKN) (the “Trust”) investment objective is to provide high current income exempt from regular U.S. 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 that pay interest that is exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. 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 up to 20% of its assets in unrated securities that are deemed by the investment adviser to be of comparable quality. 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 October 31, 2017 ($14.61)(a)

  5.09%

Tax Equivalent Yield(b)

  8.99%

Current Monthly Distribution per Common Share(c)

  $0.062

Current Annualized Distribution per Common Share(c)

  $0.744

Economic Leverage as of October 31, 2017(d)

  37%

 

  (a)  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.  
  (b) Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c) The distribution rate is not constant and is subject to change.  
  (d) 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 its 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 six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BKN(a)(b)

    2.63%        5.69%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

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

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  Portfolio income, enhanced by leverage, produced the largest positive contribution to performance in a period characterized by a mild decline in municipal bond yields. (Prices and yields move in opposite directions.)

 

  The Trust’s positions in longer-term bonds contributed positively. From a sector perspective, allocations to the tobacco, corporate and tax-backed (state) sectors contributed as yield spreads generally tightened in those areas. Municipal bonds subject to the AMT, which outperformed in anticipation of possible tax law changes, also performed well. Exposure to lower-rated issues was a further contributor. Positions in lower-coupon bonds, which tend to have above-average interest-rate sensitivity, added value as well.

 

  The Trust utilized a mix of U.S. Treasury futures contracts to help manage the risk of rising interest rates. This strategy did not have a material effect on performance.

 

  Holdings on the shorter end of the yield curve, while producing positive returns, lagged somewhat due to the increase in short-term yields.

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    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of October 31, 2017 (continued)    BlackRock Investment Quality Municipal Trust, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17      4/30/17      Change      High      Low  

Market Price

  $ 14.61      $ 14.59        0.14%      $ 15.75      $ 14.55  

Net Asset Value

  $ 15.87      $ 15.39        3.12%      $ 16.08      $ 15.35  

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

 

LOGO

Overview of the Trust’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Health

    21     23

County/City/Special District/School District

    19       15  

Transportation

    16       14  

Education

    15       16  

Utilities

    9       9  

State

    8       12  

Tobacco

    6       5  

Corporate

    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 adviser. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    4

2018

    5  

2019

    5  

2020

    7  

2021

    10  

 

  (c) 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 ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    5     5

AA/Aa

    38       43  

A

    31       29  

BBB/Baa

    15       15  

BB/Ba

    3       3  

B

    2       1  

N/R(b)

    6       4  

 

  (a) 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.  
  (b) The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 1% and less than 1%, respectively, of the Trust’s total investments.  
 

 

 

TRUST SUMMARY      7  


Trust Summary  as of October 31, 2017    BlackRock Long-Term Municipal Advantage Trust

 

Investment Objective

BlackRock Long-Term Municipal Advantage Trust’s (BTA) (the “Trust”) investment objective is to provide current income exempt from regular U.S. 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 expected to pay interest or income that is exempt from U.S. federal income tax (except that the interest may be subject to the U.S. 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 October 31, 2017 ($11.94)(a)

  5.48%

Tax Equivalent Yield(b)

  9.68%

Current Monthly Distribution per Common Share(c)

  $0.0545

Current Annualized Distribution per Common Share(c)

  $0.6540

Economic Leverage as of October 31, 2017(d)

  39%

 

  (a) 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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c) The distribution rate is not constant and is subject to change.  
  (d)  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 its 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 six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BTA(a)(b)

    5.20%        5.08%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c)  Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

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

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  Concentrations in longer-dated securities maturing in the 20-year range and longer contributed to Trust performance. The Trust’s use of leverage also boosted returns by enhancing income and amplifying the effect of rising bond prices.

 

  The Trust’s allocation to BBB-rated investment-grade debt aided results, as did its positions in bonds rated below investment grade. Positions in the health care and project finance sectors further helped performance.

 

  The Trust utilized a mix of U.S. Treasury futures contracts to help manage the risk of rising interest rates. This strategy was tactically adjusted throughout the period, resulting in a modestly negative contribution to performance.

 

  Positions in shorter-dated bonds, including high-quality pre-refunded securities, hurt results at a time in which shorter-term bonds lagged. The Trust’s more-seasoned holdings also detracted due to the premium amortization that occurred as the bonds approached their call and maturity dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A premium occurs when the price of the bond has increased due to a decline in interest rates.) Additionally, positions in higher-quality securities underperformed relative to lower-quality 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.

 

 

8    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of October 31, 2017 (continued)    BlackRock Long-Term Municipal Advantage Trust

 

Market Price and Net Asset Value Per Share Summary

 

    

10/31/17

    

4/30/17

     Change      High      Low  

Market Price

  $ 11.94      $ 11.66        2.40%      $ 12.54      $ 11.55  

Net Asset Value

  $ 12.55      $ 12.27        2.28%      $ 12.67      $ 12.26  

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

 

LOGO

Overview of the Trust’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

County/City/Special District/School District

    21     16

Health

    17       19  

Education

    12       11  

Utilities

    11       13  

Tobacco

    10       10  

Transportation

    10       15  

State

    8       7  

Corporate

    7       6  

Housing

    4       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 adviser. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    7

2018

    3  

2019

    16  

2020

    12  

2021

    17  

 

  (c) 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 ALLOCATION (a)

 

Credit Rating  

10/31/17

   

4/30/17

 

AAA/Aaa

    5     5

AA/Aa

    40       40  

A

    10       12  

BBB/Baa

    20       21  

BB/Ba

    7       6  

B

    7       6  

N/R(b)

    11       10  

 

  (a) 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.  
  (b) The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 1% of the Trust’s total investments.  
 

 

 

TRUST SUMMARY      9  


Trust Summary  as of October 31, 2017    BlackRock Municipal 2020 Term Trust

 

Investment Objective

BlackRock Municipal 2020 Term Trust’s (BKK) (the “Trust”) investment objectives are to provide current income exempt from regular U.S. federal income tax and to return $15 per Common Share (the initial public 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 managed assets in municipal bonds that pay interest that is exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its managed assets in municipal bonds that are investment grade, or if unrated, deemed to be of comparable quality by the investment adviser, 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 will achieve its investment objectives, including its 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 October 31, 2017 ($15.34)(a)

  3.09%

Tax Equivalent Yield(b)

  5.46%

Current Monthly Distribution per Common Share(c)

  $0.0395

Current Annualized Distribution per Common Share(c)

  $0.4740

Economic Leverage as of October 31, 2017(d)

  1%

 

  (a) 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.  
  (b) Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c) The distribution rate is not constant and is subject to change.  
  (d) 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 its 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 six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BKK(a)(b)

    (0.93 )%       1.46

Lipper Intermediate Municipal Debt Funds(c)

    1.06      3.01

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Trust moved from a premium to NAV to a discount during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

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

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Trust’s returns were modest during the period. Its gain was primarily derived from income, since prices on short-term bonds — the area in which the Trust primarily invests — fell slightly. (Prices and yields move in opposite directions.)

 

  Higher short-term rates lead to higher funding costs for leverage, negatively impacting the level of income in the Trust. As bonds were called and matured in the portfolio, the investment adviser used the cash proceeds to reduce leverage further.

 

  The Trust’s more-seasoned holdings, which produce generous yields compared to current market rates, were additive to performance. At the sector level, tax-exempt corporate, transportation and health care issues were positive contributors to performance.

 

  Geographically, positive returns were driven by exposure to Illinois and New Jersey bonds. Illinois passed its budget and moved closer to achieving fiscal balance and seeing a stabilization of its credit rating. In New Jersey, legislation that redirected roughly $1 billion annually in lottery proceeds to the state’s pension funds helped stabilize its credit rating and contributed to positive returns for the New Jersey credits held in the Trust.

 

  The Trust had a higher-than-average cash and cash equivalent position at period end. Given the flat rate structure at the front-end of the yield curve, bond proceeds from bond calls and maturities were invested in cash equivalent securities that contributed positively to performance.

 

  Reinvestment was a drag on results, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at materially lower prevailing rates.

 

  The Trust’s holdings in short-term, pre-refunded bonds, while producing positive returns, lagged somewhat due to the premium amortization that occurred as the bonds approached their call and maturity dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A premium occurs when the price of the bond has increased due to a decline in interest rates.)

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    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of October 31, 2017 (continued)    BlackRock Municipal 2020 Term Trust

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17      4/30/17      Change      High      Low  

Market Price

  $ 15.34      $ 15.73        (2.48)%      $ 15.95      $ 15.19  

Net Asset Value

  $ 15.58      $ 15.60        (0.13)%      $ 15.68      $ 15.55  

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

 

LOGO

Overview of the Trust’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Utilities

    18     18

Transportation

    17       17  

County/City/Special District/School District

    14       16  

Health

    14       12  

State

    15       14  

Education

    11       11  

Corporate

    5       6  

Tobacco

    4       4  

Housing

    2       2  

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 adviser. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

     

2018

    5

2019

    20  

2020

    57  

2021

    6  

 

  (c) Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes money market funds.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    6     5

AA/Aa

    27       33  

A

    38       31  

BBB/Baa

    16       17  

BB/Ba

    4       3  

B

    1       1  

CCC

          1  

N/R(b)

    8       9  

 

  (a) 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.  
  (b) The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 2%, respectively, of the Trust’s total investments.  
 

 

 

TRUST SUMMARY      11  


Trust Summary  as of October 31, 2017    BlackRock Municipal Income Trust

 

Investment Objective

BlackRock Municipal Income Trust’s (BFK) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds that pay interest that is exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade, or if unrated, deemed to be of comparable quality by the investment adviser, 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 October 31, 2017 ($14.07)(a)

  5.54%

Tax Equivalent Yield(b)

  9.79%

Current Monthly Distribution per Common Share(c)

  $0.065

Current Annualized Distribution per Common Share(c)

  $0.780

Economic Leverage as of October 31, 2017(d)

  39%

 

  (a) 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.  
  (b) Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c) The distribution rate is not constant and is subject to change.  
  (d) 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 its 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 six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BFK(a)(b)

    3.27%        4.27%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

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

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Trust’s positions in longer-dated securities made the largest contribution to performance, as bonds in the 20- to 40-year maturity range outpaced the broader market.

 

  Investments in lower-rated securities within the investment-grade market benefited performance at a time of robust investor risk appetites. Credit spreads narrowed considerably amid strong fund flows and investors’ ongoing search for yield.

 

  At the sector level, the largest contributions came from state and local tax-backed, transportation and utilities issues.

 

  Investments in high-quality, pre-refunded securities in the one- to five-year range declined in value amid the upward pressure on short-term interest rates fostered by the ongoing normalization of monetary policy. These positions, which the Trust acquired in a higher-rate environment, were retained due to their above average income.

 

  The Trust sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on Trust returns.

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    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of October 31, 2017 (continued)    BlackRock Municipal Income Trust

 

Market Price and Net Asset Value Per Share Summary

 

    

10/31/17

    

4/30/17

     Change      High      Low  

Market Price

  $ 14.07      $ 14.00        0.50%      $ 14.72      $ 13.96  

Net Asset Value

  $ 14.45      $ 14.24        1.47%      $ 14.62      $ 14.21  

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

 

LOGO

Overview of the Trust’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

County/City/Special District/School District

    22     14

Transportation

    18       23  

Health

    14       13  

Utilities

    13       15  

State

    11       11  

Tobacco

    7       7  

Education

    7       10  

Corporate

    7       7  

Housing

    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 adviser. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    5

2018

    4  

2019

    16  

2020

    14  

2021

    15  

 

  (c) 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 ALLOCATION (a)

 

Credit Rating  

10/31/17

   

4/30/17

 

AAA/Aaa

    6     8

AA/Aa

    43       44  

A

    18       16  

BBB/Baa

    21       20  

BB/Ba

    4       4  

B

    2       2  

N/R(b)

    6       6  

 

  (a) 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.  
  (b) The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 1% of the Trust’s total investments.  
 

 

 

TRUST SUMMARY      13  


Trust Summary  as of October 31, 2017    BlackRock Strategic Municipal Trust

 

Investment Objective

BlackRock Strategic Municipal Trust’s (BSD) (the “Trust”) investment objectives are to provide current income that is exempt from regular U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests at least 80% of its assets in securities that are investment grade, or if unrated, deemed to be of comparable quality by the investment adviser, 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, but the dollar-weighted average maturity of obligations held by the Trust may be shortened, depending on market conditions. 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 October 31, 2017 ($13.82)(a)

  5.64%

Tax Equivalent Yield(b)

  9.96%

Current Monthly Distribution per Common Share(c)

  $0.065

Current Annualized Distribution per Common Share(c)

  $0.780

Economic Leverage as of October 31, 2017(d)

  40%

 

  (a) 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.  
  (b) Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c) The distribution rate is not constant and is subject to change.  
  (d) 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 its 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 six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BSD(a)(b)

    3.91%        4.38%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

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

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospectus for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  Concentrations in longer-dated securities maturing in the 20-year range and longer contributed to performance. The Trust’s use of leverage also boosted returns by enhancing income and amplifying the effect of rising bond prices.

 

  The Trust’s allocation to BBB-rated investment-grade debt aided results, as did its positions in bonds rated below investment grade. Positions in the transportation and tax-backed (state) sectors further helped performance, highlighted by the strong showing of New Jersey and Illinois issues.

 

  The Trust utilized a mix of U.S. Treasury futures contracts to help manage the risk of rising interest rates. This strategy was tactically adjusted throughout the period, resulting in a modestly positive contribution to performance.

 

  Positions in shorter-dated bonds, including high-quality pre-refunded securities, hurt results at a time in which shorter-term bonds lagged. The Trust’s more-seasoned holdings also detracted due to the premium amortization that occurred as the bonds approached their call and maturity dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A premium occurs when the price of the bond has increased due to a decline in interest rates.) Additionally, positions in higher-quality securities underperformed relative to lower-quality 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.

 

 

14    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of October 31, 2017 (continued)    BlackRock Strategic Municipal Trust

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17     

4/30/17

     Change      High      Low  

Market Price

  $ 13.82      $ 13.67        1.10%      $ 15.49      $ 13.55  

Net Asset Value

  $ 14.43      $ 14.21        1.55%      $ 14.60      $ 14.18  

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

 

LOGO

Overview of the Trust’s Total Investments*

 

SECTOR ALLOCATION

 

Sector  

10/31/17

   

4/30/17

 

County/City/Special District/School District

    22     16

Transportation

    17       24  

Health

    16       16  

Education

    11       9  

Utilities

    9       12  

State

    9       10  

Corporate

    9       7  

Tobacco

    5       5  

Housing

    2       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 adviser. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    3

2018

    6  

2019

    17  

2020

    11  

2021

    13  

 

  (c) 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 ALLOCATION (a)

 

Credit Rating  

10/31/17

   

4/30/17

 

AAA/Aaa

    5     6

AA/Aa

    39       43  

A

    19       17  

BBB/Baa

    21       20  

BB/Ba

    4       4  

B

    2       2  

N/R(b)

    10       8  

 

  (a) 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.  
  (b) The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 1% of the Trust’s total investments.  
 

 

 

TRUST SUMMARY      15  


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   
Alabama — 0.9%  

Homewood Educational Building Authority, Refunding RB, Educational Facilities, Samford University, Series A, 5.00%, 12/01/33

  $ 760     $ 878,879  

Opelika Utilities Board, Refunding RB, 4.00%, 6/01/41

    1,540       1,612,411  
   

 

 

 
      2,491,290  
Arizona — 6.5%  

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

    3,300       3,509,682  

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

    455       469,283  

County of Pinal Arizona Electric District No.3, Refunding RB:

   

4.75%, 7/01/21(b)

    680       762,885  

4.75%, 7/01/31

    3,070       3,356,523  

Salt Verde Financial Corp., RB, Senior:

   

5.00%, 12/01/32

    1,035       1,250,932  

5.00%, 12/01/37

    4,585       5,585,814  

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

    750       814,620  

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

    1,600       1,860,064  
   

 

 

 
      17,609,803  
Arkansas — 2.0%  

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

    755       793,316  

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

    1,250       1,303,387  

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

    2,645       2,740,432  

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

    465       514,625  
   

 

 

 
      5,351,760  
California — 20.1%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 8/15/31

    2,300       2,587,017  

California Health Facilities Financing Authority, Refunding RB, Adventist Health System West, Series A, 3.00%, 3/01/39

    1,130       1,021,723  

California Infrastructure & Economic Development Bank, Refunding RB, Academy Motion Picture Arts and Sciences, Series A, 4.00%, 11/01/45

    3,330       3,459,570  

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

    1,500       1,658,085  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT:

   

Series A (BAM), 4.00%, 3/01/42

    2,460       2,539,261  

Series A-1, 5.75%, 3/01/34

    3,000       3,387,570  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior Series A-1, 5.75%, 6/01/47

    1,985       1,984,940  

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

    2,475       2,533,658  

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

    12,000       5,381,760  

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

   

0.00%, 8/01/30(d)

    2,270       1,555,177  

0.00%, 8/01/33(d)

    4,250       1,742,798  

0.00%, 8/01/39(c)

    4,000       3,742,840  

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

    4,200       4,933,110  

State of California, GO, Refunding, Various Purposes:

   

5.00%, 2/01/38

    2,000       2,289,900  

4.00%, 10/01/44

    2,520       2,653,686  
Security   Par
(000)
    Value  
California (continued)  

State of California, GO, Various Purposes:

   

5.75%, 4/01/31

  $ 3,000     $ 3,201,300  

6.00%, 3/01/33

    2,270       2,526,873  

6.50%, 4/01/33

    2,900       3,121,212  

5.50%, 3/01/40

    3,650       4,002,480  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 5.13%, 6/01/46

    495       495,842  
   

 

 

 
      54,818,802  
Colorado — 0.2%  

Rampart Range Metropolitan District No. 1, Refunding RB, (AGM), 5.00%, 12/01/47

    420       476,935  
   

 

 

 
Connecticut — 0.4%  

Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/36

    950       1,017,041  
   

 

 

 
Delaware — 2.1%  

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

    1,800       1,906,236  

Delaware Transportation Authority, RB:

   

5.00%, 6/01/45

    2,000       2,281,020  

U.S. 301 Project, 5.00%, 6/01/55

    1,430       1,610,209  
   

 

 

 
      5,797,465  
Florida — 7.1%  

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

    900       938,151  

City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/47

    1,085       1,290,933  

County of Miami-Dade Florida, RB:

   

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

    5,000       2,847,850  

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

    15,375       8,341,091  

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

    3,000       3,543,090  

County of Miami-Dade Florida Aviation Revenue, Refunding RB, Series B, AMT, 5.00%, 10/01/40

    1,895       2,182,775  

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

    200       212,500  
   

 

 

 
      19,356,390  
Hawaii — 1.3%  

State of Hawaii Department of Budget & Finance, Refunding RB:

   

Hawaiian Electric Co., Inc. AMT, 4.00%, 3/01/37

    2,770       2,857,477  

Special Purpose, Senior Living, Kahala Nui, 5.25%, 11/15/37

    600       662,952  
   

 

 

 
      3,520,429  
Idaho — 1.2%  

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

    3,000       3,287,850  
   

 

 

 
Illinois — 8.1%  

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

    5,000       5,458,950  

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

    2,400       2,500,848  

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

    1,735       1,919,621  
 

 

 

16    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

City of Chicago Illinois O’Hare International Airport, GARB, Senior Lien, Series D, AMT, 5.00%, 1/01/42

  $ 770     $ 866,273  

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

    1,000       1,073,060  

Illinois Finance Authority, Refunding RB:

   

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

    435       466,781  

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

    1,500       1,594,170  

Railsplitter Tobacco Settlement Authority, RB:

   

6.25%, 6/01/24

    5,000       5,288,450  

6.00%, 6/01/28

    1,700       1,915,594  

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

    1,000       1,040,150  
   

 

 

 
      22,123,897  
Kansas — 2.9%  

County of Seward Kansas Unified School District No. 480 Liberal, GO, Refunding:

   

5.00%, 9/01/39

    1,085       1,259,642  

5.00%, 9/01/39

    4,915       5,454,126  

Kansas Development Finance Authority, Refunding RB, Sisters Leavenworth:

   

5.00%, 1/01/20(b)

    1,005       1,085,872  

5.00%, 1/01/28

    150       159,870  
   

 

 

 
      7,959,510  
Kentucky — 6.8%  

County of Boyle Kentucky, Refunding RB, Centre College of Kentucky, 5.00%, 6/01/37

    4,000       4,529,960  

County of Louisville & Jefferson Kentucky Metropolitan Government, Refunding RB, Norton Healthcare, Inc., Series A, 4.00%, 10/01/35

    870       896,988  

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

    3,400       3,685,226  

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

    8,500       7,295,380  

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

   

0.00%, 7/01/34

    1,000       887,530  

0.00%, 7/01/39

    1,395       1,219,746  
   

 

 

 
      18,514,830  
Louisiana — 1.9%  

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

    1,790       2,015,665  

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

    1,565       1,764,992  

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

    600       647,490  

West Baton Rouge Parish School District No. 3, GO, (AGM):

   

5.00%, 3/01/36

    225       259,004  

5.00%, 3/01/37

    425       488,491  
   

 

 

 
      5,175,642  
Maryland — 0.2%  

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

   

5.13%, 7/01/36

    260       263,421  

5.25%, 7/01/44

    260       262,759  
   

 

 

 
      526,180  
Massachusetts — 2.1%  

Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A:

   

5.00%, 1/01/47

    1,010       1,129,534  

5.25%, 1/01/42

    900       1,034,703  
Security   Par
(000)
    Value  
Massachusetts (continued)  

Massachusetts Development Finance Agency, Refunding RB:

   

Emmanuel College Issue, Series A, 4.00%, 10/01/46

  $ 1,380     $ 1,395,456  

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

    600       648,360  

Suffolk University, 4.00%, 7/01/39

    1,375       1,402,596  
   

 

 

 
      5,610,649  
Michigan — 3.7%  

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

    360       385,434  

Michigan Finance Authority, Refunding RB, Henry Ford Health System, 4.00%, 11/15/46

    2,305       2,352,391  

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

    4,150       4,297,948  

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

    2,750       2,912,525  

State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38

    60       62,855  
   

 

 

 
      10,011,153  
Minnesota — 2.9%  

City of Maple Grove Minnesota, Refunding RB, Maple Grove Hospital, Corp., 4.00%, 5/01/37

    1,405       1,438,467  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38

    1,905       2,001,945  

Housing & Redevelopment Authority of The City of Saint Paul Minnesota, RB, Great River School Project, Series A, 5.50%, 7/01/52(a)

    305       309,313  

Minneapolis-St. Paul Metropolitan Airports Commission, Refunding ARB, Sub Series D, AMT, 5.00%, 1/01/41

    460       521,778  

Minnesota Higher Education Facilities Authority, RB:

   

Augsburg College, Series B, 4.25%, 5/01/40

    1,895       1,896,933  

College of St. Benedict, Series 8-K, 5.00%, 3/01/37

    1,055       1,200,073  

College of St. Benedict, Series 8-K, 4.00%, 3/01/43

    615       624,127  
   

 

 

 
      7,992,636  
Mississippi — 2.1%  

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

    600       670,962  

Mississippi Development Bank, RB, Special Obligation:

   

CAB, Hinds Community College District (AGM), 5.00%, 4/01/21(b)

    1,910       2,145,216  

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

    2,655       2,818,628  
   

 

 

 
      5,634,806  
Missouri — 3.0%  

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

    1,350       1,437,885  

Missouri State Health & Educational Facilities Authority, RB:

   

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

    500       556,880  

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

    480       508,541  

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

    750       848,063  

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

    700       722,673  

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

    1,500       1,701,405  

Missouri State Health & Educational Facilities Authority, Refunding RB, Kansas City University of Medicine and Biosciences, Series A:

   

5.00%, 6/01/42

    860       976,203  

5.00%, 6/01/47

    1,230       1,389,740  
   

 

 

 
      8,141,390  
 

 

 

SCHEDULES OF INVESTMENTS      17  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Nebraska — 2.9%  

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

  $ 900     $ 979,083  

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

    600       664,158  

County of Sarpy Nebraska Hospital Authority No. 1, Refunding RB, Nebraska Medicine, 3.00%, 5/15/46

    3,075       2,682,784  

Nebraska Public Power District, Refunding RB, Series A:

   

5.00%, 1/01/32

    2,535       2,852,458  

4.00%, 1/01/44

    600       612,678  
   

 

 

 
      7,791,161  
Nevada — 0.6%  

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

    1,500       1,591,935  

Nevada Department of Business & Industry, RB, Series A, 5.00%, 7/15/37(a)

    125       128,694  
   

 

 

 
      1,720,629  
New Jersey — 8.2%  

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

    1,510       15,855  

New Jersey EDA, RB:

   

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

    1,335       1,461,651  

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

    990       1,125,086  

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

    300       332,592  

School Facilities Construction Bonds, Series DDD, 5.00%, 6/15/42

    160       171,477  

New Jersey Educational Facilities Authority, Refunding RB, College of New Jersey, Series G, 3.50%, 7/01/31

    1,150       1,169,332  

New Jersey Health Care Facilities Financing Authority, Refunding RB, Series A:

   

RWJ Barnabas Health Obligated Group, 4.00%, 7/01/43

    2,955       3,066,876  

St. Barnabas Health Care System, 4.63%, 7/01/21(b)

    770       860,421  

St. Barnabas Health Care System, 5.63%, 7/01/21(b)

    2,560       2,951,859  

St. Barnabas Health Care System, 5.00%, 7/01/25

    500       566,900  

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

    2,780       3,130,197  

New Jersey Transportation Trust Fund Authority, RB:

   

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

    1,600       710,592  

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

    1,350       1,439,680  

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

    600       639,450  

Transportation System, Series A, 5.50%, 6/15/41

    500       537,750  

Transportation System, Series B, 5.50%, 6/15/31

    2,000       2,191,800  

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

    2,115       2,027,439  
   

 

 

 
      22,398,957  
New Mexico — 1.1%  

New Mexico Finance Authority, RB, Senior Lien, Series A:

   

3.25%, 6/01/33

    865       884,324  

3.25%, 6/01/34

    1,340       1,357,634  

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

    680       765,483  
   

 

 

 
      3,007,441  
New York — 8.2%  

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

   

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

    300       317,811  

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

    1,100       1,120,482  

City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, 5.00%, 8/01/38

    5,000       5,885,750  
Security   Par
(000)
    Value  
New York (continued)  

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

  $ 1,400     $ 1,448,650  

Counties of New York Tobacco Trust VI, Refunding RB, Settlement Pass-Through Turbo, Series C, 4.00%, 6/01/51

    1,000       923,550  

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

    1,825       1,790,106  

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

    2,475       2,614,763  

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       1,343,925  

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

    640       707,450  

New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 8/01/31

    1,905       2,032,711  

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

    600       600,402  

Port Authority of New York & New Jersey, Refunding RB, 195th Series, AMT, 5.00%, 10/01/35

    2,200       2,545,576  

Westchester Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C, 5.13%, 6/01/51

    1,160       1,148,017  
   

 

 

 
      22,479,193  
North Dakota — 0.3%  

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

    720       810,043  
   

 

 

 
Ohio — 1.4%  

City of Dayton Ohio Airport Revenue, Refunding ARB, James M. Cox Dayton International Airport, Series A (AGM), AMT, 4.00%, 12/01/32

    3,000       3,094,980  

County of Butler Port Authority, RB, Series A-1(a):

   

Storypoint Fairfield Project, 6.25%, 1/15/34

    500       518,705  

StoryPoint Fairfield Project, 6.38%, 1/15/43

    275       283,750  
   

 

 

 
      3,897,435  
Oklahoma — 1.6%  

Norman Oklahoma Regional Hospital Authority, Refunding RB, 4.00%, 9/01/37

    1,765       1,789,851  

Oklahoma City Public Property Authority, Refunding RB:

   

5.00%, 10/01/36

    800       924,136  

5.00%, 10/01/39

    280       321,521  

Oklahoma Development Finance Authority, RB, Provident Oklahoma Education Resources, Inc., Cross Village Student Housing Project, Series A, 5.25%, 8/01/57

    1,315       1,445,409  
   

 

 

 
      4,480,917  
Oregon — 3.3%  

Clackamas Community College District, GO, Convertible Deferred Interest Bonds, Series A, 0.00%, 6/15/38(c)

    335       344,581  

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

    1,500       653,100  

Klamath Falls Intercommunity Hospital Authority, Refunding RB, Sky Lakes Medical Center Project:

   

3.00%, 9/01/35

    630       586,858  

3.00%, 9/01/41

    950       839,695  

Oregon Health & Science University, RB, Series A, 4.00%, 7/01/37

    1,075       1,136,791  

State of Oregon Facilities Authority, Refunding RB, Legacy Health Project, Series A, 4.00%, 6/01/41

    2,610       2,690,414  

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

    2,485       2,778,081  
   

 

 

 
      9,029,520  
 

 

 

18    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Pennsylvania — 8.6%  

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

  $ 2,535     $ 2,646,008  

Delaware River Port Authority, RB:

   

4.50%, 1/01/32

    3,000       3,306,420  

Series D (AGM), 5.00%, 1/01/40

    3,640       3,913,400  

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

    500       351,925  

Pennsylvania Economic Development Financing Authority, Refunding RB:

   

National Gypsum Co., AMT, 5.50%, 11/01/44

    810       858,163  

Series A, 4.00%, 11/15/42

    3,485       3,551,424  

Pennsylvania Turnpike Commission, RB:

   

Series B, 5.00%, 12/01/36

    3,350       3,848,246  

Series B, 5.00%, 12/01/40

    500       569,735  

Sub-Series B-1, 5.00%, 6/01/42

    1,970       2,222,396  

Pottsville Hospital Authority, Refunding RB, Lehigh Valley Health Network, Series B, 5.00%, 7/01/45

    2,000       2,230,360  
   

 

 

 
      23,498,077  
Puerto Rico — 1.0%  

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

   

5.50%, 5/15/39

    1,470       1,442,688  

5.63%, 5/15/43

    1,395       1,366,765  
   

 

 

 
      2,809,453  
Rhode Island — 5.4%  

Rhode Island Commerce Corp., RB, Airport Corp., Series D:

   

5.00%, 7/01/41

    430       482,095  

5.00%, 7/01/46

    340       378,488  

Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 9/15/42

    1,485       1,541,430  

Rhode Island Health & Educational Building Corp., Refunding RB, Series A (AGM), 3.75%, 5/15/32

    1,845       1,907,841  

Rhode Island Turnpike & Bridge Authority, Refunding RB, Series A, 5.00%, 10/01/40

    2,710       3,086,554  

State of Rhode Island, COP, School for the Deaf Project, Series C (AGC), 5.38%, 4/01/19(b)

    1,330       1,408,962  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 6/01/40

    1,000       1,062,790  

Series B, 4.50%, 6/01/45

    2,725       2,730,123  

Series B, 5.00%, 6/01/50

    2,000       2,063,560  
   

 

 

 
      14,661,843  
South Dakota — 0.6%  

Dakota Valley School District No. 61-8, GO, Refunding, 3.00%, 7/15/39

    1,620       1,528,211  
   

 

 

 
Tennessee — 3.7%  

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

    2,945       3,174,857  

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

    875       944,895  

County of Knox Tennessee Health Educational & Housing Facility Board, RB, University Health System, Inc., 4.00%, 9/01/40

    1,285       1,290,641  

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

   

5.25%, 11/01/27

    1,135       1,222,407  

5.38%, 11/01/28

    1,000       1,080,500  

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

    1,200       1,275,912  

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 7/01/40

    1,075       1,208,246  
   

 

 

 
      10,197,458  
Security   Par
(000)
    Value  
Texas — 6.9%  

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

  $ 5,000     $ 1,891,500  

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

    2,200       2,392,346  

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

    16,780       6,925,945  

Leander ISD, GO, Refunding CAB, Series D (PSF-GTD)(d):

   

0.00%, 8/15/24(b)

    550       289,927  

0.00%, 8/15/35

    5,450       2,659,818  

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

    1,140       1,291,061  

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

    3,000       3,385,890  
   

 

 

 
      18,836,487  
Utah — 0.4%  

Utah State Charter School Finance Authority, Refunding RB:

   

Mountainville Academy, 4.00%, 4/15/42

    600       613,008  

The Freedom Academy Foundation Project, 5.25%, 6/15/37(a)

    205       206,279  

The Freedom Academy Foundation Project, 5.38%, 6/15/48(a)

    260       259,015  
   

 

 

 
      1,078,302  
Vermont — 0.8%  

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

    1,160       1,217,130  

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

    850       885,819  
   

 

 

 
      2,102,949  
Virginia — 1.2%  

Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A, 5.38%, 3/01/36

    780       789,929  

Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 6/01/47

    1,030       990,005  

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

    1,440       1,627,992  
   

 

 

 
      3,407,926  
Wisconsin — 2.2%  

Public Finance Authority, Refunding RB, National Gypsum Co., AMT, 4.00%, 8/01/35

    435       421,519  

Wisconsin Health & Educational Facilities Authority, Refunding RB:

   

Ascension Senior Credit Group, 4.00%, 11/15/36

    2,900       3,021,394  

Medical College of Wisconsin, Inc., 4.00%, 12/01/46

    955       984,137  

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

    1,330       1,513,633  
   

 

 

 
      5,940,683  
   

 

 

 

Total Municipal Bonds — 133.9%

 

    365,095,143  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(h)

 

Colorado — 2.0%  

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

    5,250       5,351,587  
   

 

 

 
Connecticut — 1.6%  

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

    3,902       4,409,596  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      19  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida — 0.9%  

Pinellas County School Board, COP, Master Lease Program, Series A, 5.00%, 7/01/41

  $ 2,120     $ 2,433,060  
   

 

 

 
Georgia — 2.5%  

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

    5,997       6,896,760  
   

 

 

 
Minnesota — 2.1%  

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

    5,000       5,688,711  
   

 

 

 
New Jersey — 1.1%  

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

    2,861       3,040,976  
   

 

 

 
New York — 7.7%  

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

    1,600       1,737,584  

City of New York New York Water & Sewer System, RB, Fiscal 2009, Series A:

   

5.75%, 6/15/18(b)

    159       163,242  

5.75%, 6/15/40

    531       545,889  

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution:

   

Fiscal 2013, Series CC, 5.00%, 6/15/47

    4,000       4,552,541  

Series FF-2, 5.50%, 6/15/40

    810       865,239  

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

    1,750       1,988,397  

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

    4,500       5,072,799  

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

    3,359       3,443,076  

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

    2,360       2,672,075  
   

 

 

 
      21,040,842  
Ohio — 1.6%  

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

    1,740       1,773,191  

Ohio Higher Educational Facility Commission, Refunding RB, Cleveland Clinic Health System, Series A, 5.25%, 1/01/18(b)

    2,600       2,613,780  
   

 

 

 
      4,386,971  
Texas — 2.1%  

Aldine Independent School District, GO, Refunding(PSF-GTD), 5.00%, 2/15/42

    2,609       3,033,586  
Security   Shares/Par
(000)
    Value  
Texas (continued)  

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

  $ 2,380     $ 2,682,873  
   

 

 

 
      5,716,459  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 21.6%

 

    58,964,962  
   

 

 

 

Total Long-Term Investments
(Cost — $392,161,911) — 155.5%

 

    424,060,105  
   

 

 

 

Short-Term Securities — 1.6%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.74%(k)(j)

    4,462,977       4,464,316  
   

 

 

 

Total Short-Term Securities
(Cost — $4,464,308) — 1.6%

 

    4,464,316  
   

 

 

 

Total Investments
(Cost — $396,626,219) — 157.1%

 

    428,524,421  

Other Assets Less Liabilities — 1.4%

 

    3,831,043  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (12.3)%

 

    (33,678,123

VMTP Shares, at Liquidation Value — (46.2)%

 

    (125,900,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 272,777,341  
   

 

 

 

 

(a)  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.
(b)  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.
(c)  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.
(d)  Zero-coupon bond.
(e)  Security is collateralized by municipal bonds or U.S. Treasury obligations.
(f)  Non-income producing security.
(g)  Issuer filed for bankruptcy and/or is in default.
(h)  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.
(i)  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.
(j)  Annualized 7-day yield as of period end.
 
(k)  During the period ended October 31, 2017, investments in issuers considered to be an affiliate 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
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     6,238,321        (1,775,344      4,462,977      $ 4,464,316      $ 20,967      $ 2,364      $ 8  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes capital gain distribution, if applicable.  

 

 

20    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     (49        12/19/17        $ 6,122        $ 89,315  

Long U.S. Treasury Bond

     (82        12/19/17          12,502          224,246  

Ultra Long U.S. Treasury Bond

     (19        12/19/17          3,131          62,735  

5-Year U.S. Treasury Note

     (33        12/29/17          3,867          32,220  
                 

 

 

 
     $ 408,516  
                 

 

 

 

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:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

 

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 408,516      $      $ 408,516  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) Includes cummulative 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 six months ended October 31, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ (788,950    $      $ (788,950
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 806,691      $      $ 806,691  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 26,136,512  

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

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

 

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 Investments(a)

   $        $ 424,060,105        $             —        $ 424,060,105  

Short-Term Securities

     4,464,316                            4,464,316  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 4,464,316        $ 424,060,105        $        $ 428,524,421  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 408,516        $        $        $ 408,516  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each state or political subdivision.  
  (b)  Derivative financial instruments are futures contracts which 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 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  

Liabilities:

                 

TOB Trust Certificates

   $             —        $ (33,581,954      $             —        $ (33,581,954

VMTP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (159,481,954      $        $ (159,481,954
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

22    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   
Alabama — 1.1%  

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

  $ 1,655     $ 1,930,855  
   

 

 

 
Alaska — 0.6%  

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 6/01/46

    1,000       954,350  
   

 

 

 
Arizona — 2.8%  

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

   

5.13%, 7/01/37

    360       378,878  

5.38%, 7/01/50

    925       977,041  

City of Phoenix Arizona IDA, RB, Series A:

   

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

    870       896,178  

Legacy Traditional Schools Projects, 5.00%, 7/01/46(a)

    1,255       1,303,192  

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

   

5.00%, 7/01/35

    125       130,489  

5.00%, 7/01/46

    135       139,150  

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

    725       883,253  
   

 

 

 
      4,708,181  
California — 12.6%  

California Health Facilities Financing Authority, RB:

   

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

    385       413,136  

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

    1,040       1,169,636  

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/19(b)

    680       735,127  

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

   

5.25%, 8/15/39

    70       77,196  

5.25%, 8/15/49

    175       191,662  

City & County of San Francisco California Redevelopment Agency, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Series D, 0.00%, 8/01/31(a)(c)

    1,265       612,994  

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

   

Senior, 5.00%, 5/15/40

    2,045       2,222,445  

5.25%, 5/15/39

    270       286,807  

City of San Francisco California Public Utilities Commission Water Revenue, RB, Series B, 5.00%, 11/01/19(b)

    3,225       3,476,776  

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

    165       202,480  

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

   

5.70%, 6/01/46

    1,000       1,003,470  

5.60%, 6/01/36

    2,000       2,037,900  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior Series A-1, 5.75%, 6/01/47

    860       859,974  

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

    3,725       1,744,492  

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

    2,000       2,152,560  

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

   

Series I, 5.00%, 11/01/38

    355       407,551  

Sub-Series I-1, 6.38%, 11/01/19(b)

    400       442,072  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1:

   

5.00%, 6/01/37

    2,150       2,156,794  

5.13%, 6/01/46

    1,005       1,006,708  
   

 

 

 
      21,199,780  
Security   Par
(000)
    Value  
Colorado — 4.7%  

Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47

  $ 275     $ 282,155  

Colorado Health Facilities Authority, Refunding RB, Series A:

   

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

    3,940       4,178,449  

Sunny Vista Living Center Project, 6.13%, 12/01/45(a)

    160       168,362  

Sunny Vista Living Center Project, 6.25%, 12/01/50(a)

    520       547,913  

Denver Convention Center Hotel Authority, Refunding RB, 5.00%, 12/01/40

    1,550       1,735,876  

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

    1,000       1,045,010  
   

 

 

 
      7,957,765  
Connecticut — 0.5%  

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

    860       914,515  
   

 

 

 
Delaware — 1.8%  

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

    750       794,265  

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

    2,240       2,313,875  
   

 

 

 
      3,108,140  
District of Columbia — 1.4%  

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

    260       296,993  

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

    750       828,397  

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

   

5.00%, 10/01/39

    170       180,319  

5.25%, 10/01/44

    1,000       1,063,820  
   

 

 

 
      2,369,529  
Florida — 4.2%  

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

    1,950       2,134,490  

Florida Development Finance Corp., RB, Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 8/01/29(a)(d)

    740       757,827  

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

   

4.00%, 5/01/21

    100       101,355  

4.25%, 5/01/26

    100       102,245  

5.13%, 5/01/46

    410       425,584  

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

    1,080       1,314,716  

Tolomato Community Development District, Refunding, Special Assessment Bonds:

   

Convertible CAB, Series A2, 6.61%, 5/01/39

    95       94,991  

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

    225       207,324  

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

    120       92,833  

Series 2015-2, 0.00%, 5/01/40(e)

    310       205,186  

Series A1, 6.65%, 5/01/40

    335       335,077  

Tolomato Community Development District:

   

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

    505       405,752  

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

    15       14,642  

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

    800       894,944  
   

 

 

 
      7,086,972  
 

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Georgia — 0.2%  

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

  $ 240     $ 281,278  
   

 

 

 
Guam — 0.1%  

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

    85       88,211  
   

 

 

 
Illinois — 10.9%  

City of Chicago Illinois, GO, Refunding, Series A:

   

6.00%, 1/01/38

    595       681,091  

Project, 5.25%, 1/01/32

    1,090       1,156,991  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series A:

   

5.75%, 1/01/21(b)

    2,100       2,387,301  

5.75%, 1/01/39

    400       449,816  

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

    360       386,302  

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

    1,000       1,063,980  

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

    350       374,374  

Illinois Finance Authority, RB, Advocate Health Care Network, Series C(b):

   

5.38%, 4/01/19

    870       920,382  

5.38%, 4/01/19

    975       1,031,462  

Illinois Finance Authority, Refunding RB:

   

Central Dupage Health, Series B, 5.50%, 11/01/39

    550       592,740  

Presence Health Network, Series C, 5.00%, 2/15/41

    1,500       1,655,715  

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.50%, 6/15/53

    200       219,742  

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

   

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

    800       811,272  

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

    1,790       1,896,648  

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

    715       718,618  

State of Illinois, GO:

   

5.25%, 2/01/30

    1,000       1,079,330  

5.00%, 3/01/35

    555       573,937  

5.00%, 3/01/37

    745       769,823  

State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/19(b)

    215       229,136  

State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 1/01/38

    815       908,505  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 4/01/44

    475       519,023  
   

 

 

 
      18,426,188  
Indiana — 6.1%  

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

   

6.75%, 1/01/34

    365       432,237  

7.00%, 1/01/44

    885       1,053,185  

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

    1,155       1,121,517  

County of Allen Indiana, RB, StoryPoint Fort Wayne Project, Series A-1(a):

   

6.63%, 1/15/34

    135       142,055  

6.75%, 1/15/43

    200       209,602  

6.88%, 1/15/52

    410       430,602  

Indiana Finance Authority, RB, Series A:

   

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

    1,285       1,454,915  

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

    160       172,227  

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

    520       558,080  
Security   Par
(000)
    Value  
Indiana (continued)  

Indiana Finance Authority, RB, Series A (continued):

   

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

  $ 2,190     $ 2,372,383  

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

    290       310,909  

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A:

   

5.75%, 5/01/19(b)

    495       527,710  

5.75%, 5/01/31

    105       111,464  

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

    350       369,943  

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

    445       501,720  

Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 1/15/51(a)

    560       582,652  
   

 

 

 
      10,351,201  
Iowa — 1.2%  

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

   

5.50%, 12/01/22

    830       849,912  

5.25%, 12/01/25

    660       703,382  

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

    500       528,680  
   

 

 

 
      2,081,974  
Kentucky — 0.6%  

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

    450       483,367  

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

    565       493,669  
   

 

 

 
      977,036  
Louisiana — 4.7%  

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

   

6.75%, 11/01/32

    2,000       2,000,000  

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

    1,135       1,280,042  

Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A, 5.13%, 6/01/37

    1,965       1,970,797  

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

   

5.50%, 5/15/30

    350       378,423  

5.25%, 5/15/31

    300       325,737  

5.25%, 5/15/32

    380       416,172  

5.25%, 5/15/33

    415       450,653  

5.25%, 5/15/35

    945       1,028,056  
   

 

 

 
      7,849,880  
Maine — 0.6%  

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

    970       1,052,770  
   

 

 

 
Maryland — 1.0%  

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

    970       1,033,748  

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

    645       681,256  
   

 

 

 
      1,715,004  
Massachusetts — 5.8%  

Massachusetts Development Finance Agency, RB:

   

Emerson College Issue, Series A, 5.00%, 1/01/47

    860       961,781  

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

    1,000       1,097,200  

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

    1,000       1,124,320  
 

 

 

24    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts (continued)  

Massachusetts Development Finance Agency, RB (continued):

   

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

  $ 2,000     $ 2,119,420  

UMass Boston Student Housing Project, 5.00%, 10/01/48

    945       1,032,280  

Massachusetts Development Finance Agency, Refunding RB, Emmanuel College Issue, Series A, 5.00%, 10/01/35

    500       566,815  

Massachusetts HFA, Refunding RB, Series A, AMT:

   

4.45%, 12/01/42

    645       673,058  

4.50%, 12/01/47

    2,135       2,226,463  
   

 

 

 
      9,801,337  
Michigan — 1.6%  

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

    1,970       2,184,119  

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

    410       445,986  
   

 

 

 
      2,630,105  
Minnesota — 0.5%  

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

    180       180,205  

Housing & Redevelopment Authority of The City of State Paul Minnesota, Refunding RB, Hmong College Academy Project, Series A, 5.50%, 9/01/36

    690       718,635  
   

 

 

 
      898,840  
Mississippi — 0.2%  

Mississippi Business Finance Corp., RB, Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 2/01/36(a)(d)

    295       302,107  
   

 

 

 
Missouri — 0.5%  

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

    85       96,620  

City of St. Louis Missouri IDA, Refunding RB:

   

4.38%, 11/15/35

    330       337,042  

4.75%, 11/15/47

    365       373,614  

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

    115       125,570  
   

 

 

 
      932,846  
Nebraska — 0.2%  

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

    285       314,840  
   

 

 

 
New Jersey — 7.4%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.00%, 11/01/22

    2,035       2,230,482  

5.25%, 11/01/39

    475       497,923  

5.25%, 11/01/44

    1,160       1,210,309  

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

    505       507,449  

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

    1,410       1,552,368  

New Jersey EDA, Refunding RB:

   

Series BBB, 5.50%, 6/15/31

    1,225       1,430,445  

Sub Series A, 4.00%, 7/01/32

    295       296,870  

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

    785       881,712  

New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Joseph’s Healthcare System Obligated Group, 5.00%, 7/01/41

    750       819,930  
Security   Par
(000)
    Value  
New Jersey (continued)  

New Jersey Transportation Trust Fund Authority, RB:

   

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

  $ 585     $ 623,862  

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

    845       898,379  

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

    1,500       1,437,900  
   

 

 

 
      12,387,629  
New York — 29.5%  

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

    2,830       3,177,637  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A:

   

6.25%, 6/01/41(a)

    900       931,275  

5.00%, 6/01/42

    1,505       1,443,295  

5.00%, 6/01/45

    555       525,602  

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

    1,500       1,235,520  

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

    320       312,710  

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

    910       892,601  

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:

   

5.75%, 2/15/21(b)

    3,915       4,480,404  

5.75%, 2/15/47

    2,595       2,956,250  

Metropolitan Transportation Authority, RB, Series B:

   

5.25%, 11/15/38

    1,125       1,311,953  

5.25%, 11/15/39

    400       465,160  

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

    6,140       6,935,560  

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       451,559  

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

    2,355       2,559,814  

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

    160       176,862  

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

    395       439,528  

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

    2,220       2,559,882  

New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 1/01/50

    1,000       1,108,490  

New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT:

   

5.00%, 8/01/20

    250       267,585  

5.00%, 8/01/26

    1,275       1,371,250  

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

    730       809,293  

State of New York Dormitory Authority, RB(b):

   

Series A, 5.25%, 7/01/18

    1,000       1,027,830  

Series B, 5.75%, 3/15/19

    11,250       11,960,550  

State of New York Dormitory Authority, Refunding RB, Orange Regional Medical Center, 5.00%, 12/01/33(a)

    455       499,717  

Westchester Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C, 4.00%, 6/01/42

    1,750       1,765,225  
   

 

 

 
      49,665,552  
North Carolina — 0.5%  

North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/19(b)

    480       508,934  

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

    260       286,858  
   

 

 

 
      795,792  
 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Ohio — 4.6%  

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

   

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

  $ 1,500     $ 1,404,315  

5.75%, 6/01/34

    2,295       2,152,687  

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

    2,650       2,846,100  

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

    1,220       1,341,988  
   

 

 

 
      7,745,090  
Oklahoma — 1.9%  

Oklahoma Development Finance Authority, RB, Provident Oklahoma Education Resources, Inc., Cross Village Student Housing Project, Series A, 5.25%, 8/01/57

    1,290       1,417,929  

Tulsa County Industrial Authority, Refunding RB, Montereau, Inc. Project:

   

5.25%, 11/15/37

    615       689,440  

5.25%, 11/15/45

    925       1,027,379  
   

 

 

 
      3,134,748  
Oregon — 0.2%  

County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 6/15/38(c)

    625       272,338  
   

 

 

 
Pennsylvania — 2.9%  

Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project, 5.00%, 5/01/42(a)

    470       503,765  

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

    300       329,964  

County of Berks Industrial Development Authority, Refunding RB, Tower Health Project, 4.00%, 11/01/47

    1,015       1,019,161  

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

    465       520,763  

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

    720       762,811  

Pennsylvania Housing Finance Agency, RB, S/F Housing Mortgage, Series 123-B, 4.00%, 10/01/42

    1,200       1,235,424  

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

    520       588,723  
   

 

 

 
      4,960,611  
Puerto Rico — 1.1%  

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

   

5.50%, 5/15/39

    40       39,257  

5.63%, 5/15/43

    1,860       1,822,353  
   

 

 

 
      1,861,610  
Rhode Island — 2.2%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 6/01/40

    420       446,372  

Series B, 4.50%, 6/01/45

    1,875       1,878,525  

Series B, 5.00%, 6/01/50

    1,360       1,403,221  
   

 

 

 
      3,728,118  
South Carolina — 1.9%  

State of South Carolina Ports Authority, ARB, AMT, 5.25%, 7/01/55

    940       1,049,698  

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

    1,840       2,076,477  
   

 

 

 
      3,126,175  
Texas — 6.7%  

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.25%, 1/01/21(b)

    730       842,376  
Security   Par
(000)
    Value  
Texas (continued)  

City of Dallas Texas Waterworks & Sewer System Revenue, Refunding RB:

   

5.00%, 10/01/20(b)

  $ 240     $ 264,946  

5.00%, 10/01/35

    285       312,733  

City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39

    250       257,202  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/23(b)

    210       265,507  

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

    700       761,201  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 0.00%, 9/15/37(c)

    5,200       2,264,184  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB:

   

Buckingham Senior Living Community, Inc. Project, 5.50%, 11/15/45

    180       186,012  

Scott & White Healthcare, 6.00%, 8/15/20(b)

    105       118,520  

Scott & White Healthcare, 6.00%, 8/15/20(b)

    1,285       1,452,346  

Harris County-Houston Sports Authority, Refunding RB, CAB, Series A (AGM) (NPFGC), 0.00%, 11/15/34(c)

    3,000       1,476,630  

Mission Economic Development Corp., RB, Senior Lien, Natgasoline Project, Series B, AMT, 5.75%, 10/01/31(a)

    875       919,179  

Newark Higher Education Finance Corp., RB, Series A(a):

   

5.50%, 8/15/35

    135       138,686  

5.75%, 8/15/45

    275       282,433  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:

   

Blueridge Transportation Group, AMT, 5.00%, 12/31/55

    1,025       1,117,352  

LBJ Infrastructure Group LLC, 7.00%, 6/30/40

    500       564,315  
   

 

 

 
      11,223,622  
Utah — 1.1%  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41

    1,815       1,913,409  
   

 

 

 
Virginia — 2.8%  

Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A:

   

5.00%, 3/01/26

    260       264,251  

5.13%, 3/01/31

    510       516,569  

Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 6/01/47

    1,025       985,199  

Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 7/01/45(a)

    240       250,378  

Virginia HDA, RB, Rental Housing, Series F, 5.00%, 4/01/45

    1,000       1,045,600  

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

    1,540       1,741,047  
   

 

 

 
      4,803,044  
Washington — 0.9%  

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40

    350       389,939  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45

    1,020       1,124,968  
   

 

 

 
      1,514,907  
Wisconsin — 1.1%  

Public Finance Authority, RB, Series A:

   

5.00%, 12/01/45

    825       866,094  

5.15%, 12/01/50

    555       581,945  

Public Finance Authority, Refunding RB, Celanese Project:

   

Series C, AMT, 4.30%, 11/01/30

    200       205,012  

Series D, 4.05%, 11/01/30

    200       205,064  
   

 

 

 
      1,858,115  
 

 

 

26    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Wyoming — 0.1%  

Wyoming Municipal Power Agency, Inc., RB, Series A, 5.00%, 1/01/19(b)

  $ 100     $ 104,485  
   

 

 

 

Total Municipal Bonds — 128.8%

 

    217,028,949  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(h)

 

Alabama — 0.8%  

Auburn University, Refunding RB, Series A, 4.00%, 6/01/41

    1,240       1,302,484  
   

 

 

 
California — 3.7%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/19(b)

    1,090       1,160,150  

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/18(b)(i)

    840       871,716  

City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, Sub-Series B, AMT, 5.00%, 5/15/46

    2,700       3,071,844  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No.2 Bonds, 5.00%, 10/01/47

    495       571,260  

San Diego Community College District, GO, Election of 2002, 5.25%, 8/01/19(b)

    554       592,918  
   

 

 

 
      6,267,888  
Colorado — 0.5%  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34(i)

    740       777,858  
   

 

 

 
Illinois — 2.6%  

Illinois Finance Authority, RB, Carle Foundation, Series A (AGM), 6.00%, 8/15/41

    2,340       2,643,124  

Illinois State Toll Highway Authority, RB, Series C, 5.00%, 1/01/38

    1,498       1,695,922  
   

 

 

 
      4,339,046  
Massachusetts — 4.7%  

Massachusetts School Building Authority, RB, Series B, 5.00%, 10/15/41

    7,112       7,975,462  
   

 

 

 
New Hampshire — 0.4%  

New Hampshire Health and Education Facilities Authority Act, RB, Doartmouth College Issue, 5.25%, 6/01/19(b)(i)

    660       701,332  
   

 

 

 
New York — 2.4%  

City of New York New York Water & Sewer System, Refunding RB, Series FF-2, 5.50%, 6/15/40

    495       528,758  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    1,860       2,174,480  

Port Authority of New York & New Jersey, Refunding RB, 194th Series, 5.25%, 10/15/55

    1,215       1,406,828  
   

 

 

 
      4,110,066  
North Carolina — 0.8%  

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University, Series B, 5.00%, 10/01/55

    1,180       1,342,757  
   

 

 

 
Ohio — 2.9%  

State of Ohio, Refunding RB, Cleveland Clinic Health, Series A, 5.50%, 1/01/19(b)

    4,634       4,863,719  
   

 

 

 
Pennsylvania — 1.2%  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    1,680       1,974,756  
   

 

 

 
Rhode Island — 1.5%  

Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 9/15/47

    2,447       2,525,525  
   

 

 

 
Security   Shares/Par
(000)
    Value  
Texas — 9.5%  

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

  $ 11,000     $ 12,399,832  

County of Harris Metropolitan Transit Authority, RB, Series A, 5.00%, 11/01/41

    1,170       1,305,299  

County of Harris Texas, RB, Senior Lien Toll Road, Series A(i):

   

5.00%, 8/15/19(b)

    1,202       1,274,761  

5.00%, 8/15/38

    920       975,082  
   

 

 

 
      15,954,974  
Virginia — 1.9%  

Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40

    2,949       3,157,662  
   

 

 

 
Wisconsin — 1.2%  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/19(b)(i)

    1,989       2,102,610  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 34.1%

 

    57,396,139  
   

 

 

 

Total Long-Term Investments
(Cost — $257,671,828) — 162.9%

 

    274,425,088  
   

 

 

 

Short-Term Securities

   

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.74%(j)(k)

    192,601       192,659  
   

 

 

 

Total Short-Term Securities
(Cost — 192,659) — 0.1%

 

    192,659  
   

 

 

 

Total Investments
(Cost — $257,864,487) — 163.0%

 

    274,617,747  

Other Assets Less Liabilities — 2.0%

 

    3,203,345  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (20.1)%

 

    (33,801,022

VRDP Shares, at Liquidation Value, Net of Deferred Offering
Costs — (44.9)%

 

    (75,574,023
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 168,446,047  
 

 

 

 

 

(a)  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.
(b)  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.
(c)  Zero-coupon bond.
(d)  Variable rate security. Rate shown is the rate in effect as of period end.
(e)  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.
(f)  Issuer filed for bankruptcy and/or is in default.
(g)  Non-income producing security.
(h)  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.
(i)  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 May 7, 2018 to February 15, 2031, is 4,124,562. See Note 4 of the Notes to Financial Statements for details.
(j)  Annualized 7-day yield as of period end.
 

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

 

(k)  During the period ended October 31, 2017, 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
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain (Loss) 
(a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     1,586,090        (1,393,489      192,601      $ 192,659      $ 2,419      $ 546      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes capital gain distribution, if applicable.  

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     (23        12/19/17        $   2,874        $ 44,351  

Long U.S. Treasury Bond

     (31        12/19/17          4,727          82,392  

Ultra Long U.S. Treasury Bond

     (14        12/19/17          2,307          45,194  

5-Year U.S. Treasury Note

     (31        12/29/17          3,633          34,565  
                 

 

 

 
     $ 206,502  
                 

 

 

 

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:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 206,502      $      $ 206,502  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

For the six months ended October 31, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ (501,281    $      $ (501,281
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 454,270      $      $ 454,270  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 14,802,114  

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

 

 

28    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

 

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 Investments(a)

   $        $ 274,425,088        $             —        $ 274,425,088  

Short-Term Securities

     192,659                            192,659  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 192,659        $ 274,425,088        $        $ 274,617,747  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 206,502        $        $        $ 206,502  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each state or political subdivision.  
  (b)  Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument and options written are shown at value.  

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  

Liabilities:

 

TOB Trust Certificates

   $             —        $ (33,725,867      $             —        $ (33,725,867

VRDP Shares at Liquidation Value

              (76,000,000                 (76,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (109,725,867      $        $ (109,725,867
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock Municipal 2020 Term Trust (BKK)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   
Alabama — 0.4%  

Alabama 21st Century Authority Tobacco Settlement, Refunding RB, Series A, 5.00%, 6/01/20

  $ 1,000     $ 1,082,170  

Tuscaloosa City Board of Education, RB, 5.00%, 8/01/20

    225       247,264  
   

 

 

 
      1,329,434  
Alaska — 2.0%  

City of Valdez Alaska, Refunding RB, BP Pipelines Project:

   

Series B, 5.00%, 1/01/21

    3,200       3,537,440  

Series C, 5.00%, 1/01/21

    2,500       2,763,625  
   

 

 

 
      6,301,065  
Arizona — 3.3%  

City of Phoenix Arizona IDA, RB, Series A, 4.75%, 7/01/19(a)

    340       350,248  

Phoenix Civic Improvement Corp., Refunding RB, Junior Lien, Series A:

   

5.00%, 7/01/19(b)

    5,585       5,943,054  

5.00%, 7/01/20

    1,300       1,422,642  

Salt Verde Financial Corp., RB, Senior:

   

5.00%, 12/01/18

    1,500       1,557,195  

5.25%, 12/01/20

    1,000       1,104,820  
   

 

 

 
      10,377,959  
California — 5.8%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.00%, 8/15/22

    815       900,306  

Los Angeles Regional Airports Improvement Corp. Facilities Lease, Refunding RB, LAXFuel Corp., Los Angeles International Airport, AMT:

   

5.00%, 1/01/19

    540       563,123  

5.00%, 1/01/20

    550       593,027  

Los Angeles Unified School District California, GO, Series I, 5.00%, 7/01/20

    3,750       3,998,137  

State of California, GO, Refunding, Various Purpose, 5.25%, 10/01/22

    1,000       1,179,070  

State of California Department of Water Resources, Refunding RB, Series L, 5.00%, 5/01/20

    10,000       10,963,300  
   

 

 

 
      18,196,963  
Colorado — 1.4%  

Adams & Arapahoe Joint School District 28J Aurora, GO, Refunding:

   

Series A, 5.00%, 12/01/20

    690       768,170  

Series B, 5.00%, 12/01/20

    1,335       1,486,242  

Centerra Metropolitan District No. 1, Tax Allocation Bonds, 2.70%, 12/01/19

    705       710,020  

Colorado Educational & Cultural Facilities Authority, Refunding RB, Peak to Peak Charter School Project:

   

4.00%, 8/15/19

    125       130,485  

4.00%, 8/15/20

    150       159,177  

Colorado Health Facilities Authority, Refunding RB, Evangelical Lutheran Good Samaritan Society Project:

   

4.00%, 12/01/19

    555       585,775  

4.00%, 12/01/20

    580       624,393  
   

 

 

 
      4,464,262  
Florida — 3.4%  

City of Jacksonville Florida, RB, Better Jacksonville, 5.00%, 10/01/18(b)

    5,160       5,345,812  

County of Broward Florida School Board, COP, Series A (AGM), 5.25%, 7/01/18(b)

    1,250       1,284,538  

County of Miami-Dade Florida, Refunding RB, Series A, AMT, 5.00%, 10/01/20

    1,375       1,513,352  
Security   Par
(000)
    Value  
Florida (continued)  

County of Miami-Dade Florida Expressway Authority, Refunding RB, Toll System, Series A, 5.00%, 7/01/20

  $ 500     $ 548,275  

Stevens Plantation Community Development District, Special Assessment Bonds, Series B, 6.38%, 5/01/13(c)(d)

    2,980       2,086,000  
   

 

 

 
      10,777,977  
Georgia — 2.5%  

Gainesville & Hall County Development Authority, Refunding RB, ACTS Retirement — Life Communities, Inc. Obligated Group, 5.00%, 11/15/22

    6,915       7,785,875  
Guam — 0.5%  

Guam Government Waterworks Authority, RB, 5.25%, 7/01/20

    250       271,682  

Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/20

    1,190       1,301,872  
   

 

 

 
      1,573,554  
Hawaii — 0.9%  

State of Hawaii Department of Budget & Finance, Refunding RB, Special Purpose Senior Living, Kahala Nui:

   

5.00%, 11/15/19

    1,275       1,363,880  

5.00%, 11/15/20

    1,440       1,581,379  
   

 

 

 
      2,945,259  
Illinois — 11.7%  

Chicago Transit Authority, Refunding RB, 5.00%, 6/01/20

    1,000       1,083,490  

City of Chicago Illinois Motor Fuel Tax, Refunding RB, 5.00%, 1/01/20

    1,000       1,047,130  

Lake Cook-Dane & McHenry Counties Community Unit School District 220 Illinois, GO, Refunding, (AGM), 5.25%, 12/01/20

    1,000       1,113,430  

Metropolitan Pier & Exposition Authority Illinois, Refunding RB, CAB, McCormick, Series A (NPFGC), 0.00%, 6/15/22(e)

    13,455       11,865,561  

Railsplitter Tobacco Settlement Authority, RB, 5.25%, 6/01/20

    10,000       10,972,300  

State of Illinois, GO, 5.00%, 7/01/20

    4,055       4,293,028  

State of Illinois, RB, Series B:

   

5.00%, 6/15/19(b)

    515       546,374  

5.00%, 6/15/20

    1,485       1,570,536  

State of Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 5.00%, 2/15/20

    4,145       4,418,529  
   

 

 

 
      36,910,378  
Indiana — 0.4%  

Indiana Municipal Power Agency, Refunding RB, Series A, 5.00%, 1/01/21

    600       668,190  

Northern Indiana Commuter Transportation District, RB, 5.00%, 7/01/20

    620       676,786  
   

 

 

 
      1,344,976  
Iowa — 0.9%  

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.00%, 12/01/19

    2,650       2,746,301  
   

 

 

 
Kansas — 2.1%  

County of Wyandotte Kansas, Kansas City Unified Government, RB, Kansas International Speedway (NPFGC), 0.00%, 12/01/20(e)

    4,240       3,761,855  

Kansas Development Finance Authority, Refunding RB, Adventist Health, Series C, 5.25%, 11/15/20

    2,500       2,712,250  
   

 

 

 
      6,474,105  
Kentucky — 1.6%  

County of Louisville & Jefferson Kentucky, Refunding RB, Catholic Health Initiatives, Series A:

   

3.50%, 12/01/20

    2,115       2,199,642  

5.00%, 12/01/20

    1,430       1,550,821  
 

 

 

30    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Municipal 2020 Term Trust (BKK)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Kentucky (continued)  

Kentucky Public Transportation Infrastructure Authority, RB, CAB, 1st Tier Downtown Crossing Project(e):

   

0.00%, 7/01/19

  $ 255     $ 244,474  

0.00%, 7/01/20

    1,000       931,290  
   

 

 

 
      4,926,227  
Louisiana — 0.1%  

City of New Orleans Louisiana, Refunding RB, 5.00%, 12/01/20

    400       440,208  
Maryland — 1.7%  

City of Baltimore Maryland, Refunding, Tax Allocation Bonds:

   

5.00%, 6/15/19

    250       263,490  

5.00%, 6/15/20

    275       297,633  

County of Anne Arundel Maryland Consolidated Special Taxing District, Refunding, Special Tax Bonds, The Villages of Dorchester & Farmington Village Project:

   

4.00%, 7/01/19

    285       297,862  

5.00%, 7/01/20

    500       546,485  

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.13%, 6/01/20

    985       1,051,753  

Maryland EDC, Refunding RB, University of Maryland, College Park Projects (AGM), 4.00%, 6/01/20

    640       682,867  

Maryland Health & Higher Educational Facilities Authority, Refunding RB:

   

Charlestown Community, 5.50%, 1/01/21(f)

    1,335       1,507,335  

University of Maryland, Medical System, 5.00%, 7/01/19

    670       711,004  
   

 

 

 
      5,358,429  
Massachusetts — 0.3%  

Massachusetts Educational Financing Authority, RB, Education Loan, Issue I, AMT, 5.00%, 1/01/20

    1,000       1,070,680  
   

 

 

 
Michigan — 4.4%  

City of Royal Oak Michigan Hospital Finance Authority, Refunding RB, Series D, 2.25%, 9/01/20

    1,500       1,533,990  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.00%, 5/15/20

    1,235       1,288,068  

Lansing Board of Water & Light Utilities, RB, Series A, 3.50%, 7/01/20

    1,000       1,056,600  

Michigan Finance Authority, Refunding RB, Student Loan, Series 25-A, AMT:

   

5.00%, 11/01/19

    1,940       2,063,229  

5.00%, 11/01/20

    1,800       1,961,820  

Saginaw Valley State University, Refunding RB, General, Series A, 5.00%, 7/01/20

    1,000       1,091,040  

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

   

Series 1-A, 5.00%, 10/15/20

    325       358,228  

Series 2-A, 4.00%, 10/15/20

    1,205       1,290,964  

State of Michigan Trunk Line, Refunding RB:

   

5.00%, 11/01/20

    1,000       1,074,980  

5.00%, 11/01/21

    2,000       2,149,120  
   

 

 

 
      13,868,039  
Mississippi — 0.4%  

Mississippi Development Bank, Refunding RB, Series A (AGM), 5.00%, 3/01/20

    1,035       1,117,883  
   

 

 

 
Missouri — 1.2%  

City of Kansas City Missouri Airport, Refunding RB, Series A, AMT, 5.00%, 9/01/20

    3,000       3,293,370  

State of Missouri Health & Educational Facilities Authority, Refunding RB, CoxHealth, Series A, 5.00%, 11/15/20

    500       551,510  
   

 

 

 
      3,844,880  
Security   Par
(000)
    Value  
Multi-State — 1.7%  

Centerline Equity Issuer Trust(a):

   

Series A-4-2, 6.00%, 10/31/52

  $ 2,500     $ 2,662,125  

Series B-3-2, 6.30%, 10/31/52

    2,500       2,673,175  
   

 

 

 
      5,335,300  
Nebraska — 1.2%  

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/20

    3,500       3,852,520  
   

 

 

 
Nevada — 0.9%  

County of Clark Nevada, Refunding ARB, Las Vegas McCarran International Airport, Series B:

   

5.00%, 7/01/19

    500       530,945  

5.00%, 7/01/20

    1,000  <