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: 04/30/2019

Date of reporting period: 10/31/2018


Item 1 – Report to Stockholders


OCTOBER 31, 2018

 

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, 2018, ongoing strength in corporate profits drove the equity market higher, while rising interest rates constrained bond returns. Though the market’s appetite for risk remained healthy, risk-taking was tempered somewhat, as shorter-term, higher-quality securities led the bond market, and U.S. equities outperformed most international stock markets.

In international markets, the rising value of the U.S. dollar limited U.S. investors’ returns for the reporting period. When the U.S. dollar appreciates relative to foreign currencies, the value of international investments declines in U.S. dollar terms. Volatility rose in emerging market stocks, which are relatively sensitive to changes in the U.S. dollar. U.S.-China trade relations and debt concerns adversely affected the Chinese stock market, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe led to negative performance for European equities.

In fixed income markets, short-term U.S. Treasury interest rates rose the fastest, while longer-term rates slightly increased. This led to a negative return for long-term U.S. Treasuries and a substantial flattening of the yield curve. Many investors are concerned with the flattening yield curve as a harbinger of recession. However, given the extraordinary monetary measures in the last decade, we believe a more accurate barometer for the economy is the returns along the risk spectrums in stock and bond markets. Although the fundamentals in credit markets remained relatively solid, investment-grade bonds declined slightly, and high-yield bonds posted modest returns.

In response to rising growth and inflation, the U.S. Federal Reserve (the “Fed”) increased short-term interest rates four times during the reporting period. The Fed also continued to reduce its balance sheet during the reporting period, gradually reversing the unprecedented stimulus measures it enacted after the financial crisis. We believe the Fed is likely to continue to raise interest rates in the coming year. By our estimation, the Fed’s neutral interest rate, or the theoretical rate that is neither stimulative nor restrictive to the economy, is approximately 3.0%. With that perspective, the Fed’s current policy is still mildly stimulative to the U.S. economy, which leaves room for further Fed rate hikes to arrive at monetary policy that is a neutral factor for economic growth.

The U.S. economy continued to gain momentum despite the Fed’s modest reduction of economic stimulus; unemployment declined to 3.7%, the lowest rate of unemployment in almost 50 years. The number of job openings reached a record high of more than 7 million, which exceeded the total number of unemployed workers. Strong economic performance has justified the Fed’s somewhat faster pace of rate hikes, as several inflation measures and investors’ expectations for inflation have already surpassed the Fed’s target of 2.0% per year.

While markets have recently focused on the risk of rising long-term interest rates, we continue to believe the primary risk to economic expansion is trade protectionism that could lead to slower global trade and unintended consequences for the globalized supply chain. So far, U.S. tariffs have only had a modest negative impact on economic growth, but the fear of an escalating trade war has stifled market optimism somewhat, leading to higher volatility in risk assets. The outcome of trade negotiations between the United States and China is likely to influence the global growth trajectory and set the tone for free trade in many other nations. Easing of tensions could lead to greater upside for markets, while additional tariffs could adversely affect investor sentiment.

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, 2018
     6-month   12-month

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

  3.40%   7.35%

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

  (1.37)   1.85

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

  (9.92)   (6.85)

Emerging market equities
(MSCI Emerging Markets Index)

  (16.53)   (12.52)

3-month Treasury bills
(ICE BofAML 3-Month U.S. Treasury Bill Index)

  0.99   1.68

U.S. Treasury securities
(ICE BofAML 10-Year U.S. Treasury Index)

  (0.60)   (4.37)

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

  (0.19)   (2.05)

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

  0.45   (0.31)

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

  1.14   0.98
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

     50  

Statements of Operations

     51  

Statements of Changes in Net Assets

     52  

Statements of Cash Flows

     55  

Financial Highlights

     56  

Notes to Financial Statements

     61  

Disclosure of Investment Advisory Agreement

     71  

Trustee and Officer Information

     75  

Additional Information

     76  

Glossary of Terms Used in this Report

     78  

 

 

          3  


Municipal Market Overview  For the Reporting Period Ended October 31, 2018

 

Municipal Market Conditions

Municipal bonds experienced negative total returns during the period alongside fixed income broadly, as interest rates moved higher on the back of continued Fed policy normalization, fiscal stimulus, strong economic growth, and increased U.S. Treasury issuance. At the same time, demand for the asset class remained firm. Investors favored the tax-exempt income, diversification, quality, and value of municipal bonds, particularly given that tax reform ultimately lowered the top individual tax rate just 2.6% while eliminating deductions. During the 12 months ended October 31, 2018, municipal bond funds experienced net inflows of approximately $12.8 billion (based on data from the Investment Company Institute).

 

For the same 12-month period, total new issuance was moderate from a historical perspective at $366 billion (slightly above the $363 billion issued in the prior 12-month period), but displayed significant month-to-month volatility. Notably, issuance in December posted the highest monthly total on record at $56 billion, as issuers rushed deals to market ahead of the expected elimination of the tax-exemption for advanced refunding bonds and possibly private activity bonds (PABs). Ultimately, the final version of the Tax Cuts and Jobs Act left PABs unchanged, though the elimination of advanced refundings has suppressed supply in 2018, providing a powerful technical tailwind.

  S&P Municipal Bond Index

 

Total Returns as of October 31, 2018

 

  6 months: 0.45%

 

12 months: (0.31)%

 

A Closer Look at Yields

 

LOGO

From October 31, 2017 to October 31, 2018, yields on AAA-rated 30-year municipal bonds increased by 55 basis points (“bps”) from 2.83% to 3.38%, while 10-year rates increased by 72 bps from 2.01% to 2.73% and 5-year rates increased by 88 bps from 1.42% to 2.30% (as measured by Thomson Municipal Market Data). The municipal yield curve bear flattened over the 12-month period with the spread between 2- and 30-year maturities flattening by 43 bps, however remained a significant 78 bps steeper than the corresponding U.S. Treasury curve.

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, incremental yield, and tax shelter 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 problems among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — continue to exhibit improved credit fundamentals. However, several states with the largest unfunded pension liabilities are faced with elevated borrowing costs and difficult budgetary decisions. Across the country on the local level, property values support credit stability. Standard & Poor’s recent decision to remove its “negative” outlook on New Mexico underscores the improvement in state finances as it was the only remaining state with the designation. Revenue bonds continue to drive performance as investors continue to seek higher yield bonds in the tobacco sector. 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, 2018, 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    2018 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, there is no guarantee that these objectives can 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”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (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 3313% 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      5  


Trust Summary  as of October 31, 2018    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, 2018 ($13.02)(a)

  5.25%

Tax Equivalent Yield(b)

  8.87%

Current Monthly Distribution per Common Share(c)

  $0.0570

Current Annualized Distribution per Common Share(c)

  $0.6840

Economic Leverage as of October 31, 2018(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 40.8%, 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, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BKN(a)(b)

    (1.63 )%       (0.30 )% 

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

    (3.47      (0.13

 

  (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.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time as a wave of new issuance was hitting the market.

Positions in lower-rated bonds performed well amid investors’ ongoing preference for higher-yielding issues. Conversely, holdings in investment-grade issues produced weaker returns.

The use of leverage, while providing additional income, was a net detractor since it amplified the impact of falling prices.

Holdings in longer-term bonds detracted as their weak price performance outweighed the benefit of added income. An allocation to low-coupon and zero-coupon bonds, which have a higher sensitivity to interest rates, also hurt performance.

Although yields rose during the period, reinvestment had an adverse effect on the Trust’s income since the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Trust’s positioning had a positive effect on returns by offsetting the weakness in prices.

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    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of October 31, 2018 (continued)    BlackRock Investment Quality Municipal Trust, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 13.02      $ 13.57        (4.05 )%     $ 14.45      $ 12.72  

Net Asset Value

    14.84        15.26        (2.75      15.52        14.84  

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

 

LOGO

Overview of the Trust’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Education

    16     15

Health

    16       20  

County/City/Special District/School District

    15       14  

Transportation

    13       15  

Utilities

    11       8  

State

    10       9  

Financing & Development

          4  

Corporate

    7       6  

Tobacco

    5       5  

Medical

    2        

Housing

    5       1  

Public Services

          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,

       

2018

    3

2019

    5  

2020

    7  

2021

    10  

2022

    11  

 

  (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   10/31/18     04/30/18  

AAA/Aaa

    5     4

AA/Aa

    37       35  

A

    26       27  

BBB/Baa

    18       16  

BB/Ba

    3       3  

B

    5       3  

N/R(b)

    6       12  

 

  (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, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      7  


Trust Summary  as of October 31, 2018    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, 2018 ($10.58)(a)

  6.18%

Tax Equivalent Yield(b)

  10.44%

Current Monthly Distribution per Common Share(c)

  $0.0545

Current Annualized Distribution per Common Share(c)

  $0.6540

Economic Leverage as of October 31, 2018(d)

  41%

 

  (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 40.8%, 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 monthly distribution per Common Share, declared on December 3, 2018, was decreased to $0.0505 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

 
  (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, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BTA(a)(b)

    (2.75 )%       0.18

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

    (3.47      (0.13

 

  (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.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time as a wave of new issuance was hitting the market.

The Trust’s positions in lower-duration bonds, including pre-refunded securities, were strong performers due do their defensive nature and lower sensitivity to interest-rate movements.

Positions in BBB rated issues and select non-investment-grade bonds, which outperformed higher quality securities, aided results. Holdings in Illinois issues were particularly strong performers. Economic tailwinds helped improve the state’s credit fundamentals by boosting income and sales tax revenues. This trend, coupled with a limited supply of high-yielding, tax-exempt bonds, led to outperformance for Illinois. Non-investment-grade positions in the tobacco sector were also additive.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Trust’s positioning had a positive effect on returns by offsetting the weakness in prices.

The Trust’s yield curve positioning, which featured concentrations in longer-dated maturities, had an adverse effect on performance. The curve steepened over the period as yields on long-term debt rose more than those with shorter maturities. (Prices and yields move in opposite directions.)

Positions in lower-coupon bonds, which typically underperform when rates are rising, detracted from results. Investments in the housing sector were notable detractors in this area.

At the sector level, an allocation to education issues was a key detractor.

 

 

8    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of October 31, 2018 (continued)    BlackRock Long-Term Municipal Advantage Trust

 

The use of leverage, while providing additional income, was a net detractor since it amplified the impact of falling prices.

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.

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 10.58      $ 11.20        (5.54 )%     $ 11.81      $ 10.50  

Net Asset Value

    11.95        12.28        (2.69      12.44        11.95  

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

 

LOGO

Overview of the Trust’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Health

    19     17

Transportation

    14       14  

County/City/Special District/School District

    14       15  

Utilities

    12       11  

Education

    11       12  

State

    10       10  

Tobacco

    10       11  

Corporate

    5       6  

Housing

    5       4  

 

  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,

       

2018

    7

2019

    14  

2020

    11  

2021

    16  

2022

    5  

 

  (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   10/31/18     04/30/18  

AAA/Aaa

    5     5

AA/Aa

    38       36  

A

    14       11  

BBB/Baa

    18       19  

BB/Ba

    9       7  

B

    11       6  

N/R(b)

    5       16  

 

  (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, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 1%, respectively, of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      9  


Trust Summary  as of October 31, 2018    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.

On June 6, 2018, the Board of Trustees approved a change of the Trust’s fiscal year end from April 30 to December 31. The change is effective December 31, 2018.

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, 2018 ($14.77)(a)

  2.58%

Tax Equivalent Yield(b)

  4.36%

Current Monthly Distribution per Common Share(c)

  $0.0318

Current Annualized Distribution per Common Share(c)

  $0.3816

Economic Leverage as of October 31, 2018(d)

  —%

 

  (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 40.8%, 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 TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to 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, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BKK(a)(b)

    (1.23 )%       0.38

Lipper Intermediate Municipal Debt Funds(c)

    (1.05      0.37  

 

  (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.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time as a wave of new issuance was hitting the market.

The Trust produced a narrow gain at net asset value. Its return was largely derived from income, since prices on short-term bonds — the area in which the Trust primarily invests — fell slightly.

Since the Trust is scheduled to terminate on or about December 31, 2020, its holdings consist of short-term securities with lower sensitivity to changes in prevailing yields. The portfolio’s short maturity profile therefore helped cushion the impact of weak performance for the overall municipal market.

The premium amortization that occurred as the Trust’s holdings in short-term bonds approached their call and maturity dates detracted from results. (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.)

Reinvestment had an adverse effect on the Trust’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing 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    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of October 31, 2018 (continued)    BlackRock Municipal 2020 Term Trust

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 14.77      $ 15.16        (2.57 )%     $ 15.19      $ 14.71  

Net Asset Value

    15.08        15.23        (0.98      15.28        15.08  

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

 

LOGO

Overview of the Trust’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Utilities

    22     20

Transportation

    18       17  

State

    14       15  

Health

    13       13  

Education

    11       11  

County/City/Special District/School District

    11       13  

Corporate

    4       4  

Tobacco

    4       4  

Housing

    3       3  

 

  For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector subclassifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment 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,

       

2018

    2

2019

    21  

2020

    61  

2021

    6  

2022

    7  

 

  (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   10/31/18     04/30/18  

AAA/Aaa

    8     6

AA/Aa

    28       28  

A

    32       32  

BBB/Baa

    18       20  

BB/Ba

    5       5  

N/R(b)

    9       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, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 1%, respectively, of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      11  


Trust Summary  as of October 31, 2018    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, 2018 ($12.19)(a)

  5.76%

Tax Equivalent Yield(b)

  9.73%

Current Monthly Distribution per Common Share(c)

  $0.0585

Current Annualized Distribution per Common Share(c)

  $0.7020

Economic Leverage as of October 31, 2018(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 40.8%, 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, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BFK(a)(b)

    (1.97 )%       0.28

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

    (3.47      (0.13

 

  (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.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer months, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time as a wave of new issuance was hitting the market.

The Trust’s yield curve positioning made the largest contribution to performance. Positions in high-quality, short-dated, pre-refunded bonds performed relatively well and held their value better than longer-dated holdings. The latter experienced larger price declines amid a steepening yield curve in which rates on intermediate- and long-term issues rose at a faster pace than those of short-term securities. (Prices and yields move in opposite directions.)

Positions in lower-quality issues continued to benefit results, as investor risk appetites remained robust for much of the reporting period. Holdings in lower-rated investment-grade bonds and high-yield issues outperformed due to the combination of their higher income and stronger price performance. However, these bonds lagged late in the period once investor sentiment began to deteriorate.

The use of leverage, while providing additional income, was a net detractor since it amplified the impact of falling prices.

At the sector level, positions in tobacco, state tax-backed and local tax-backed issues all contributed to results. Investments in project finance, transportation and corporate-related debt added value, as well. An allocation to the education sector was a slight detractor.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Trust’s positioning had a positive effect on returns by offsetting the weakness in prices.

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    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of October 31, 2018 (continued)    BlackRock Municipal Income Trust

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 12.19      $ 12.78        (4.62 )%     $ 13.39      $ 12.08  

Net Asset Value

    13.64        13.98        (2.43      14.12        13.64  

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

 

LOGO

Overview of the Trust’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Transportation

    21     22

Health

    16       13  

Utilities

    16       15  

State

    12       14  

County/City/Special District/School District

    12       13  

Tobacco

    9       8  

Corporate

    7       7  

Education

    6       7  

Housing

    1       1  

 

  For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector subclassifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment 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,

       

2018

    4

2019

    15  

2020

    13  

2021

    14  

2022

    9  

 

  (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   10/31/18     04/30/18  

AAA/Aaa

    5     6

AA/Aa

    36       40  

A

    21       18  

BBB/Baa

    25       22  

BB/Ba

    5       5  

B

    4       4  

N/R(b)

    4       5  

 

  (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, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      13  


Trust Summary  as of October 31, 2018    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 objectives 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, 2018 ($11.61)(a)

  5.89%

Tax Equivalent Yield(b)

  9.95%

Current Monthly Distribution per Common Share(c)

  $0.0570

Current Annualized Distribution per Common Share(c)

  $0.6840

Economic Leverage as of October 31, 2018(d)

  41%

 

  (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 40.8%, 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, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BSD(a)(b)

    (5.67 )%       (0.02 )% 

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

    (3.47      (0.13

 

  (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.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time as a wave of new issuance was hitting the market.

The Trust’s positions in lower-duration bonds, including pre-refunded securities, were strong performers due do their defensive nature and lower sensitivity to interest-rate movements.

Positions in BBB rated issues, which outperformed higher quality securities, aided results. Holdings in the transportation sector, as well as in Illinois and New Jersey issues, were particularly strong performers. Economic tailwinds helped improve the credit fundamentals of both states by boosting income and sales tax revenues. This trend, coupled with a limited supply of high-yielding, tax-exempt bonds, led to outperformance for these issuers.

The use of leverage, while providing additional income, was a net detractor since it amplified the impact of falling prices.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Trust’s positioning had a positive effect on returns by offsetting the weakness in prices.

The Trust’s yield curve positioning, which featured concentrations in longer-dated maturities, had an adverse effect on performance. The curve steepened over the period as yields on long-term debt rose more than those with shorter maturities. (Prices and yields move in opposite directions.)

Positions in lower-coupon bonds, which typically underperform when rates are rising, detracted from results. Investments in the housing sector were notable detractors in this area.

 

 

14    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of October 31, 2018 (continued)    BlackRock Strategic Municipal Trust

 

At the sector level, an allocation to education issues was a key detractor.

Leverage also hurt performance given the negative price performance in the broader market. In addition, rising costs (which are based on short-term rates) reduced the income benefits of leverage.

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.

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 11.61      $ 12.65        (8.22 )%     $ 12.80      $ 11.58  

Net Asset Value

    13.58        13.96        (2.72      14.12        13.58  

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

 

LOGO

Overview of the Trust’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Transportation

    21     22

Health

    18       16  

County/City/Special District/School District

    13       15  

Utilities

    12       12  

State

    10       10  

Corporate

    8       8  

Education

    7       8  

Tobacco

    7       7  

Housing

    4       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,

       

2018

    2

2019

    15  

2020

    11  

2021

    13  

2022

    9  

 

  (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   10/31/18     04/30/18  

AAA/Aaa

    3     4

AA/Aa

    37       37  

A

    20       17  

BBB/Baa

    22       24  

BB/Ba

    6       6  

B

    4       4  

N/R(b)

    8       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, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 1%, respectively, of the Trust’s total investments. As of October 31, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% and 1%, respectively, of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      15  


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Municipal Bonds — 138.5%  

Alabama — 0.6%

 

Opelika Utilities Board, Refunding RB, 4.00%, 06/01/41

  $ 1,540     $ 1,535,411  
   

 

 

 
Arizona — 6.6%  

Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 02/01/42

    3,300       3,450,513  

City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, 5.00%, 07/01/45(a)

    455       453,640  

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

   

4.75%, 07/01/21(b)

    680       725,519  

4.75%, 07/01/31

    3,070       3,218,496  

Salt Verde Financial Corp., RB, Senior:

   

5.00%, 12/01/32

    1,035       1,173,069  

5.00%, 12/01/37

    4,585       5,199,298  

University Medical Center Corp., RB, 6.50%, 07/01/19(b)

    750       771,870  

University Medical Center Corp., Refunding RB, 6.00%, 07/01/21(b)

    1,600       1,752,064  
   

 

 

 
      16,744,469  
Arkansas — 2.0%  

City of Benton Arkansas, RB, 4.00%, 06/01/39

    755       765,162  

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

    1,250       1,252,213  

City of Little Rock Arkansas, RB, 4.00%, 07/01/41

    2,645       2,648,862  

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

    465       493,732  
   

 

 

 
      5,159,969  
California — 20.7%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 08/15/20(b)

    2,300       2,461,414  

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

    3,330       3,349,480  

California Statewide Communities Development Authority, Refunding RB, John Muir Health, Series A, 4.00%, 12/01/53

    725       704,976  

Carlsbad California Unified School District, GO, Election of 2006, Series B, 0.00%, 05/01/34(c)

    1,500       1,727,265  

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

   

Series A (BAM), 4.00%, 03/01/42

    2,460       2,405,068  

Series A-1, 5.75%, 03/01/34

    3,000       3,209,430  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1:

   

3.50%, 06/01/36

    1,275       1,249,398  

5.25%, 06/01/47

    830       834,532  

Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 0.00%, 08/01/34(c)

    2,475       2,551,725  

Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 0.00%, 08/01/38(d)

    12,000       5,014,200  

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

   

0.00%, 08/01/30(d)

    2,270       1,520,605  

0.00%, 08/01/33(d)

    4,250       1,741,140  

0.00%, 08/01/39(c)

    4,000       3,760,360  

San Diego Community College District, GO, CAB, Election of 2002, 0.00%, 08/01/33(c)

    4,200       4,860,450  

State of California, GO, Refunding, Various Purposes:

   

5.00%, 02/01/38

    2,000       2,161,620  

4.00%, 10/01/44

    2,520       2,569,165  
Security   Par
(000)
    Value  
California (continued)  

State of California, GO, Various Purposes:

   

6.50%, 04/01/19(b)

  $ 1,570     $ 1,601,573  

5.75%, 04/01/31

    3,000       3,046,560  

6.00%, 03/01/33

    2,270       2,391,944  

6.50%, 04/01/33

    1,330       1,354,512  

5.50%, 03/01/40

    3,650       3,807,461  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 5.13%, 06/01/46

    495       496,228  
   

 

 

 
      52,819,106  
Colorado — 0.4%  

City & County of Denver Colorado, COP, Colorado Convention Center Expansion Project, Series A, 4.00%, 06/01/48

    1,005       996,357  
   

 

 

 
Connecticut — 0.8%  

Connecticut Housing Finance Authority, Refunding RB:

   

M/F Housing, Sub-Series E-1 (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 05/15/36(e)

    585       581,350  

S/F Housing, Sub-Series B-1, 4.00%, 05/15/45

    400       389,768  

Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F, 5.00%, 07/01/21(b)

    950       1,015,882  
   

 

 

 
      1,987,000  
Delaware — 0.7%  

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

    1,800       1,903,644  
   

 

 

 
District of Columbia — 0.3%  

District of Columbia Housing Finance Agency, RB, M/F Housing, Series B-2 (FHA), 4.10%, 09/01/39

    780       764,954  
   

 

 

 
Florida — 7.5%  

Capital Trust Agency Inc., RB, M/F Housing, The Gardens Apartment Project, Series A, 4.75%, 07/01/40

    1,000       986,620  

Country of Miami-Dade FL Water & Sewer System Revenue, Refunding RB, System-Series A, 4.00%, 10/01/44

    2,500       2,476,025  

County of Miami-Dade Florida, RB:

   

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

    5,000       2,808,000  

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

    15,375       8,187,649  

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

    3,000       3,374,700  

County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%, 06/01/32

    200       206,338  

Greater Orlando Aviation Authority, RB, Priority Subordinated, Sub-Series A, AMT, 5.00%, 10/01/52

    1,130       1,206,998  
   

 

 

 
      19,246,330  
Hawaii — 1.3%  

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

   

Hawaiian Electric Co., Inc. AMT, 4.00%, 03/01/37

    2,770       2,618,093  

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

    600       647,400  
   

 

 

 
      3,265,493  
Idaho — 1.3%  

Idaho Health Facilities Authority, RB, St. Lukes Health System Project, Series A, 5.00%, 03/01/39

    3,000       3,200,430  
   

 

 

 
 

 

 

16    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois — 9.4%  

Chicago Board of Education, GO, Series C, Refunding Dedicated Revenues:

   

Series H, 5.00%, 12/01/36

  $ 375     $ 377,981  

Project, 5.25%, 12/01/35

    1,235       1,257,440  

Chicago Board of Education, GO, Refunding, , 5.00%, 12/01/34

    370       374,292  

Chicago Board of Education, GO, Dedicated Revenues:

   

Series D, 5.00%, 12/01/26

    675       697,167  

Series F, 5.00%, 12/01/22

    505       523,821  

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

    5,000       5,158,250  

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

    2,400       2,409,096  

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

    1,735       1,838,371  

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

    1,000       1,050,060  

Illinois Finance Authority, Refunding RB:

   

OSF Healthcare System, 6.00%, 05/15/39

    300       312,243  

Roosevelt University Project, 6.50%, 10/01/19(b)

    1500       1,559,820  

Illinois Housing Development Authority, RB, S/F Housing, 4.13%, 10/01/38

    1,040       1,045,211  

Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21(b)

    1,700       1,856,689  

State of Illinois, GO:

   

5.00%, 02/01/39

    1,000       1,005,880  

Series A, 5.00%, 04/01/38

    200       202,518  

Series C, 5.00%, 11/01/29

    2,655       2,716,809  

Series D, 5.00%, 11/01/28

    1,585       1,632,455  
   

 

 

 
      24,018,103  
Indiana — 0.2%  

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

   

6.63%, 01/15/34

    300       314,346  

6.75%, 01/15/43

    245       256,255  
   

 

 

 
      570,601  
Iowa — 1.0%  

Iowa Finance Authority, RB, Lifespace Communities, Series A, 5.00%, 05/15/43

    380       389,546  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project, Series B, 5.25%, 12/01/50(g)

    2,050       2,176,936  
   

 

 

 
      2,566,482  
Kansas — 3.4%  

City of Lenexa Kansas, Refunding RB, Lakeview Village, Inc., Series A, 5.00%, 05/15/39

    840       861,773  

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

   

5.00%, 09/01/22(b)

    4,915       5,398,783  

5.00%, 09/01/39

    1,085       1,179,319  

Kansas Development Finance Authority, Refunding RB, Sisters Leavenworth:

   

5.00%, 01/01/20(b)

    1,005       1,037,954  

5.00%, 01/01/28

    150       154,568  
   

 

 

 
      8,632,397  
Kentucky — 6.8%  

County of Boyle Kentucky, Refunding RB, Centre College of Kentucky, 5.00%, 06/01/37

    4,000       4,297,000  

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

    3,400       3,590,842  
Security   Par
(000)
    Value  
Kentucky (continued)  

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

  $ 8,500     $ 7,240,640  

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

   

0.00%, 07/01/34

    1,000       923,060  

0.00%, 07/01/39

    1,395       1,276,620  
   

 

 

 
      17,328,162  
Louisiana — 1.7%  

City of Alexandria Louisiana Utilities, RB, 5.00%, 05/01/39

    1,790       1,939,966  

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

    1,565       1,677,978  

Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.50%, 05/01/31

    600       626,892  
   

 

 

 
      4,244,836  
Maine — 1.0%  

Maine State Housing Authority, RB:

   

M/F Housing, Series E, 4.15%, 11/15/38(e)

    1,065       1,068,973  

M/F Housing, Series E, 4.25%, 11/15/43(e)

    955       957,120  

S/F Housing, Series C, 3.95%, 11/15/43

    505       487,067  
   

 

 

 
      2,513,160  
Maryland — 0.5%  

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

   

5.13%, 07/01/36

    260       258,339  

5.25%, 07/01/44

    260       256,763  

Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38(e)

    875       869,085  
   

 

 

 
      1,384,187  
Massachusetts — 1.9%  

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

   

5.00%, 01/01/47

    1,010       1,058,187  

5.25%, 01/01/42

    900       961,479  

Massachusetts Development Finance Agency, Refunding RB:

   

International Charter School, 5.00%, 04/15/40

    600       622,068  

Suffolk University, 4.00%, 07/01/39

    1,375       1,295,442  

Massachusetts Housing Finance Agency, RB, M/F Housing, Series A:

   

3.80%, 12/01/43

    190       179,974  

3.85%, 06/01/46

    50       46,923  

Massachusetts Housing Finance Agency, Refunding RB, S/F Housing, Series 175, 4.10%, 12/01/45

    610       606,157  
   

 

 

 
      4,770,230  
Michigan — 2.2%  

Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 07/01/44

    360       377,266  

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

    4,150       4,220,550  

State of Michigan Housing Development Authority, RB, S/F Housing, Series C, 4.13%, 12/01/38(e)

    1,110       1,111,221  
   

 

 

 
      5,709,037  
Minnesota — 2.5%  

City of Maple Grove Minnesota, Refunding RB, Maple Grove Hospital, Corp., 4.00%, 05/01/37

    1,405       1,365,576  

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

    1,905       1,908,200  
 

 

 

SCHEDULES OF INVESTMENTS      17  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Minnesota (continued)  

Housing & Redevelopment Authority of The City of Saint Paul Minnesota, RB, Great River School Project, Series A, 5.50%, 07/01/52(a)

  $ 305     $ 304,976  

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

    460       496,400  

Minnesota Higher Education Facilities Authority, RB:

   

Augsburg College, Series B, 4.25%, 05/01/40

    1,740       1,666,589  

College of St. Benedict, Series 8-K, 4.00%, 03/01/43

    615       580,209  
   

 

 

 
      6,321,950  
Mississippi — 2.1%  

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

    600       648,600  

Mississippi Development Bank, RB, Special Obligation:

   

CAB, Hinds Community College District (AGM), 5.00%, 04/01/21(b)

    1,910       2,038,276  

County of Jackson Limited Tax Note (AGC), 5.50%, 07/01/32

    2,655       2,714,286  
   

 

 

 
      5,401,162  
Missouri — 3.1%  

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

    1,350       1,431,621  

Missouri State Health & Educational Facilities Authority, RB:

   

A.T. Still University of Health Sciences:

   

5.25%, 10/01/31

    500       535,775  

4.25%, 10/01/32

    480       490,882  

5.00%, 10/01/39

    750       805,973  

Heartland Regional Medical Center, 4.13%, 02/15/43

    700       710,178  

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

    1,500       1,634,655  

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

   

5.00%, 06/01/42

    860       929,049  

5.00%, 06/01/47

    1,230       1,324,107  
   

 

 

 
      7,862,240  
Nebraska — 1.9%  

Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.00%, 09/01/42

    900       967,005  

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

    600       640,836  

Nebraska Public Power District, Refunding RB, Series A:

   

5.00%, 01/01/32

    2,535       2,707,405  

4.00%, 01/01/44

    600       594,330  
   

 

 

 
      4,909,576  
Nevada — 0.7%  

County of Clark Nevada, Refunding ARB, Department of Aviation, Subordinate Lien, Series A-2, 4.25%, 07/01/36

    1,500       1,540,965  

Nevada Department of Business & Industry, RB, Series A, 5.00%, 07/15/37(a)

    125       125,485  
   

 

 

 
      1,666,450  
New Hampshire — 0.3%  

New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project(a):

   

Series B, 4.63%, 11/01/42

    505       488,992  

Series C, AMT, 4.88%, 11/01/42

    220       214,680  
   

 

 

 
      703,672  
Security   Par
(000)
    Value  
New Jersey — 9.1%  

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

  $ 1,510     $ 15,855  

New Jersey EDA, RB:

   

Continental Airlines, Inc. Project, AMT:

   

5.25%, 09/15/29

    1,335       1,430,559  

Series B, 5.63%, 11/15/30

    990       1,098,841  

Goethals Bridge Replacement Project (AGM), AMT, 5.13%, 07/01/42

    300       320,058  

S/F Housing, State House Project, Series B, 4.50%, 06/15/40

    1,930       1,895,858  

School Facilities Construction Bonds, Series DDD, 5.00%, 06/15/42

    160       165,194  

New Jersey EDA, Refunding RB, Sub-Series A, 4.00%, 07/01/32

    250       241,545  

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

   

RWJ Barnabas Health Obligated Group, 4.00%, 07/01/43

    2,955       2,956,803  

St. Barnabas Health Care System,
4.63%, 07/01/21(b)

    770       817,209  

5.63%, 07/01/21(b)

    2,560       2,782,797  

5.00%, 07/01/25

    500       541,300  

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

    1,820       1,958,593  

New Jersey Transportation Trust Fund Authority, RB:

   

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

    1,600       698,560  

Transportation Program:

   

Series AA, 5.00%, 06/15/38

    290       299,877  

Series AA, 5.00%, 06/15/45

    1,350       1,390,540  

Series AA, 5.00%, 06/15/46

    600       617,670  

Series A, 5.50%, 06/15/41

    500       521,870  

Series A, 5.00%, 06/15/42

    395       403,627  

Series B, 5.50%, 06/15/31

    2,000       2,104,320  

New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/36

    240       251,448  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/46

    1,180       1,218,043  

Series A, 5.25%, 06/01/46

    305       322,388  

Sub-Series B, 5.00%, 06/01/46

    1,180       1,195,198  
   

 

 

 
      23,248,153  
New Mexico — 1.3%  

New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%, 08/01/44

    680       734,006  

New Mexico Mortgage Finance Authority, RB, S/F Housing, Mortgage Program, Class I, Fannie Mae & Freddie Mac):

   

Series B (Ginnie Mae, 3.90%, 07/01/48

    1,085       1,042,500  

Series C (Ginnie Mae, 3.88%, 07/01/43

    1,655       1,597,489  
   

 

 

 
      3,373,995  
New York — 5.8%  

City of New York Industrial Development Agency, RB, PILOT (AMBAC), 5.00%, 01/01/39

    1,100       1,114,509  

City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 11/01/38(e)

    1,650       1,628,022  

City of New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium (AGC), 6.50%, 01/01/46

    300       302,109  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41(a)

    1,400       1,440,572  
 

 

 

18    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

Counties of New York Tobacco Trust VI, Refunding RB, Settlement Pass-Through Turbo, Series C, 4.00%, 06/01/51

  $ 1,000     $ 883,820  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45

    1,825       1,755,376  

Long Island Power Authority, Refunding RB, Electric System, Series A, 5.75%, 04/01/19(b)

    2,475       2,514,971  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

    1,250       1,298,800  

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

    640       659,719  

New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31

    1,905       1,965,998  

Westchester Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C, 5.13%, 06/01/51

    1,160       1,176,437  
   

 

 

 
      14,740,333  
North Dakota — 0.3%  

County of Burleigh North Dakota, Refunding RB, St. Alexius Medical Center Project, Series A, 5.00%, 07/01/21(b)

    720       769,932  
   

 

 

 
Ohio — 3.1%  

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

   

5.75%, 06/01/34

    415       399,608  

5.88%, 06/01/47

    225       218,473  

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       3,009,870  

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

   

Storypoint Fairfield Project:

   

6.25%, 01/15/34

    500       511,850  

6.38%, 01/15/43

    275       281,036  

County of Ohio Housing Finance Agency, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 09/01/48

    250       243,605  

State of Ohio, Refunding RB, University Hospitals Health System, Series A, 5.00%, 01/15/41

    3,010       3,134,403  
   

 

 

 
      7,798,845  
Oklahoma — 1.4%  

City of Oklahoma Turnpike Authority, RB, Series A, 4.00%, 01/01/48

    420       413,578  

Oklahoma City Public Property Authority, Refunding RB:

   

5.00%, 10/01/36

    800       883,960  

5.00%, 10/01/39

    280       308,294  

Oklahoma Development Finance Authority, RB:

   

OU Medicine Project, Series B, 5.50%, 08/15/52

    680       730,510  

Provident Oklahoma Education Resources, Inc., Cross Village Student Housing Project, Series A, 5.25%, 08/01/57

    1,315       1,210,011  
   

 

 

 
      3,546,353  
Oregon — 1.7%  

Clackamas Community College District, GO, Convertible Deferred Interest Bonds, Series A, 0.00%, 06/15/38(c)

    135       137,233  

Oregon Health & Science University, RB, Series A, 4.00%, 07/01/37

    725       737,195  

State of Oregon Housing & Community Services Department, RB, S/F Housing, Mortgage Program, Series C, 3.95%, 07/01/43

    875       857,377  
Security   Par
(000)
    Value  
Oregon (continued)  

State of Oregon State Facilities Authority, Refunding RB, University of Portland Project, Series A, 5.00%, 04/01/45

  $ 2,485     $ 2,701,866  
   

 

 

 
      4,433,671  
Pennsylvania — 10.1%  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment (AGM), 4.00%, 06/01/39

    2,785       2,731,277  

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

    2,535       2,602,127  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49

    715       680,866  

Delaware River Port Authority, RB:

   

4.50%, 01/01/32

    3,000       3,146,250  

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

    3,640       3,737,697  

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

    500       327,645  

Pennsylvania Economic Development Financing Authority, RB, Pennsylvania Rapid Bridge Replacement, 5.00%, 12/31/38

    1,000       1,049,220  

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

    810       837,111  

Pennsylvania Housing Finance Agency, RB, S/F Housing, Series 127-B, 3.88%, 10/01/38

    670       653,163  

Pennsylvania Turnpike Commission, RB, Sub-Series A-1, 5.00%, 12/01/41

    2,735       2,884,851  

Pottsville Hospital Authority, Refunding RB, Lehigh Valley Health Network, Series B, 5.00%, 07/01/45

    2,000       2,138,020  

School District of Philadelphia, Refunding, GOL, Series F, 5.00%, 09/01/37

    800       857,736  

State Public School Building Authority, Refunding RB, The School District of Philadelphia Project, Series A, 5.00%, 06/01/34

    3,825       4,133,371  
   

 

 

 
      25,779,334  
Puerto Rico — 1.1%  

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

   

5.50%, 05/15/39

    1,470       1,490,874  

5.63%, 05/15/43

    1,395       1,413,986  
   

 

 

 
      2,904,860  
Rhode Island — 4.1%  

Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 09/15/42

    985       959,804  

Rhode Island Health & Educational Building Corp., Refunding RB, Series A (AGM), 3.75%, 05/15/32

    1,845       1,806,568  

Rhode Island Student Loan Authority, Refunding RB, Senior-Series A, AMT, 3.50%, 12/01/34

    595       570,813  

State of Rhode Island, COP, School for the Deaf Project, Series C (AGC), 5.38%, 04/01/19(b)

    1,330       1,349,272  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/40

    1,000       1,040,300  

Series B, 4.50%, 06/01/45

    2,725       2,687,477  

Series B, 5.00%, 06/01/50

    2,000       2,050,620  
   

 

 

 
      10,464,854  
South Carolina — 2.1%  

State of South Carolina Public Service Authority, RB, Series E:

   

5.00%, 12/01/48

    2,125       2,197,059  

5.50%, 12/01/53

    3,105       3,274,750  
   

 

 

 
      5,471,809  
 

 

 

SCHEDULES OF INVESTMENTS      19  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Tennessee — 3.8%  

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

  $ 2,945     $ 3,096,285  

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

    875       912,686  

County of Knox Tennessee Health Educational & Housing Facility Board, RB, University Health System, Inc., 4.00%, 09/01/40

    1,285       1,179,424  

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

   

5.25%, 11/01/27

    1,135       1,169,300  

5.38%, 11/01/28

    1,000       1,031,950  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40

    1,075       1,147,487  

Johnson City Health & Educational Facilities Board, RB, Mountain States Health, Series A, 5.00%, 08/15/42

    1,200       1,247,688  
   

 

 

 
      9,784,820  
Texas — 7.8%  

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

    5,000       1,858,800  

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

    2,200       2,300,452  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 09/15/38(d)

    16,780       6,989,541  

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

   

0.00%, 08/15/24(b)

    550       282,656  

0.00%, 08/15/35

    5,450       2,717,479  

North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49(e)

    930       912,888  

Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38

    1,140       1,248,676  

Texas Department of Housing & Community Affairs, RB, S/F Housing Mortgage, Series A (Ginnie Mae), 4.25%, 09/01/43

    300       301,302  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, 7.00%, 06/30/40

    3,000       3,193,890  
   

 

 

 
      19,805,684  
Utah — 0.6%  

Utah Housing Corp., RB, ClassI III , Series D-2 (FHA), 4.00%, 01/01/36

    515       516,648  

Utah State Charter School Finance Authority, Refunding RB:

   

Mountainville Academy, 4.00%, 04/15/42

    600       583,068  

The Freedom Academy Foundation Project, 5.25%, 06/15/37(a)

    205       200,228  

The Freedom Academy Foundation Project, 5.38%, 06/15/48(a)

    260       250,481  
   

 

 

 
      1,550,425  
Vermont — 0.3%  

Vermont Student Assistance Corp., RB, AMT, Series A, 4.25%, 06/15/32

    690       693,747  
   

 

 

 
Virginia — 1.6%  

Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A, 5.38%, 03/01/36

    780       797,542  

Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 06/01/47

    1,030       1,009,081  
Security   Par
(000)
    Value  
Virginia (continued)  

Virginia Small Business Financing Authority, RB, AMT:

   

Covanta Project, 5.00%, 01/01/48(a)(g)

  $ 745     $ 755,773  

Senior Lien, Elizabeth River Crossings OpCo LLC Project, 6.00%, 01/01/37

    1,440       1,566,835  
   

 

 

 
      4,129,231  
Washington — 0.3%  

Port of Seattle Washington, RB, Series A, AMT, 5.00%, 05/01/43

    625       670,112  
   

 

 

 
West Virginia — 1.2%  

West Virginia Hospital Finance Authority, RB, Improvement West Virginia University Health System Obligated Group, Series A, 4.00%, 06/01/51

    3,455       3,139,144  
   

 

 

 
Wisconsin — 1.9%  

Public Finance Authority, Refunding RB, National Gypsum Co., AMT, 4.00%, 08/01/35

    435       406,177  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Ascension Senior Credit Group, 4.00%, 11/15/36

    2,900       2,922,504  

WPPI Energy Power Supply Systems, Refunding RB, Series A, 5.00%, 07/01/37

    1,330       1,457,387  
   

 

 

 
      4,786,068  
   

 

 

 

Total Municipal Bonds — 138.5%
(Cost — $337,194,688)

 

    353,316,778  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(j)

 

California — 0.5%

 

Los Angeles California Unified School District, GO, Election of 2008, Series B-1, 5.25%, 07/01/42(k)

    1,182       1,356,702  
   

 

 

 
Colorado — 0.8%  

City & County of Denver Colorado Airport System Revenue, Refunding ARB, Subordinate System, Series A, AMT, 5.25%, 12/01/48(k)

    1,769       1,965,090  
   

 

 

 
Connecticut — 1.6%  

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

    3,902       4,228,766  
   

 

 

 
Florida — 0.9%  

County of Pinellas Florida School Board, COP, Master Lease Program, Series A, 5.00%, 07/01/41

    2,120       2,314,383  
   

 

 

 
Louisiana — 0.5%  

County of St. Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, First Lien, Series A, 4.00%, 05/01/41

    1,200       1,204,776  
   

 

 

 
Maryland — 1.2%  

State of Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/42

    2,760       3,047,454  
   

 

 

 
Massachusetts — 1.3%  

Commonwealth of Massachusetts, GO, Series A, 5.00%, 01/01/46

    3,018       3,335,276  
   

 

 

 
Michigan — 0.8%  

State of Michigan Housing Development Authority, RB, M/F Housing, Series A, 4.05%, 10/01/48

    2,143       2,095,575  
   

 

 

 
Minnesota — 2.1%  

State of Minnesota, RB, Series A, 5.00%, 06/01/38

    5,000       5,432,051  
   

 

 

 
Nevada — 1.0%  

County of Clark Nevada, GOL, Stadium Improvement, Series A, 5.00%, 06/01/38

    2,311       2,588,972  
   

 

 

 
 

 

 

20    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Jersey — 1.8%  

New Jersey State Turnpike Authority, Refunding RB, Series G, 4.00%, 01/01/43

  $ 1,606     $ 1,593,557  

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36(k)

    2,861       2,978,256  
   

 

 

 
      4,571,813  
New York — 9.5%  

City of New York, GO, Refunding Fiscal 2015, Series B, 4.00%, 08/01/32

    1,600       1,652,016  

City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40

    810       825,576  

City of New York Transitional Finance Authority, BARB, Series S-1, 4.00%, 07/15/42(k)

    2,145       2,122,199  

City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2013:

   

Series BB, 4.00%, 06/15/47

    6,000       5,939,180  

Series CC, 5.00%, 06/15/47

    4,000       4,378,931  

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

   

5.75%, 02/15/21(b)(k)

    1,083       1,165,347  

5.75%, 02/15/47(k)

    666       716,886  

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

    4,500       4,850,484  

State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 03/15/31

    2,360       2,528,062  
   

 

 

 
      24,178,681  
Ohio — 0.7%  

Northeast Ohio Regional Sewer District, Refunding RB, 4.00%, 11/15/49(k)

    1,800       1,771,638  
   

 

 

 
Pennsylvania — 1.3%  

Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/36(k)

    2,399       2,392,744  

Philadelphia Authority for Industrial Development, RB, Childrens Hospital of Philadelphia Project, Series A, 4.00%, 07/01/44

    914       914,491  
   

 

 

 
    3,307,235  
Rhode Island — 0.4%  

Rhode Island Housing & Mortgage Finance Corp., Refunding RB, S/F Housing, Home Ownership Opportunity Bonds, Series 69-B (Ginnie Mae, Fannie Mae & Freddie Mac), 3.95%, 10/01/43

    1,100       1,086,211  
   

 

 

 
Texas — 4.2%  

Aldine Independent School District, GO, Refunding(PSF-GTD), 5.00%, 02/15/42

    2,609       2,878,309  

City of Houston Texas Community College, GO, Limited Tax, 4.00%, 02/15/43

    2,160       2,143,296  

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

    2,380       2,551,378  

Howe Independent School District, GO, School Building (PSF-GTD), 4.00%, 08/15/43

    1,680       1,656,502  

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing And Expansion Project, 4.00%, 09/15/42

    1,409       1,412,671  
   

 

 

 
    10,642,156  
Security   Par
(000)
    Value  
Washington — 0.9%  

Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.13%, 08/15/43

  $ 2,213     $ 2,197,939  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 29.5%
(Cost — $75,985,879)

 

    75,324,718  
 

 

 

 

Total Long-Term Investments — 168.0%
(Cost — $413,180,567)

 

    428,641,496  
 

 

 

 
Short-Term Securities — 1.1%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.45%(l)(m)

    2,714,899       2,715,171  
   

 

 

 

Total Short-Term Securities — 1.1%
(Cost — $2,715,171)

 

    2,715,171  
 

 

 

 

Total Investments — 169.1%
(Cost — $415,895,738)

 

    431,356,667  

Liabilities in Excess of Other Assets — (0.9)%

 

    (2,449,349

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (18.8)%

 

    (47,892,780

VMTP Shares at Liquidation Value — (49.4)%

 

    (125,900,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 255,114,538  
   

 

 

 

 

(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) 

When-issued security.

(f) 

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

(g) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(h) 

Issuer filed for bankruptcy and/or is in default.

(i) 

Non-income producing security.

(j) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(k) 

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between February 15, 2019 to June 1, 2026 is $9,553,900. See Note 4 of the Notes to Financial Statements for details.

(l) 

Annualized 7-day yield as of period end.

 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

 

(m) 

During the six months ended October 31, 2018, 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
04/30/18
    Net
Activity
    Shares
Held at
10/31/18
    Value at
10/31/18
    Income     Net
Realized
Gain (Loss)
 (a)
    Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

          2,714,899       2,714,899     $ 2,715,171     $ 8,063     $ 296     $  
       

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

Includes net capital gain distributions, 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

     9          12/19/18        $ 1,066        $ 9,487  

Long U.S. Treasury Bond

     86          12/19/18          11,879          278,410  

5-Year U.S. Treasury Note

     19          12/31/18          2,135          5,171  
                 

 

 

 
                  $ 293,068  
                 

 

 

 

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)

   $      $      $      $      $ 293,068      $      $ 293,068  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended October 31, 2018, 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

   $      $      $      $      $ 338,690      $      $ 338,690  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 294,671      $      $ 294,671  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 18,934,590  

 

 

22    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

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)

   $        $ 428,641,496        $        $ 428,641,496  

Short-Term Securities

     2,715,171                            2,715,171  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,715,171        $ 428,641,496        $        $ 431,356,667  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 293,068        $        $             —        $ 293,068  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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 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

   $        $ (47,675,573      $        $ (47,675,573

VMTP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (173,575,573      $             —        $ (173,575,573
  

 

 

      

 

 

      

 

 

      

 

 

 

During the period ended October 31, 2018, there were no transfers between levels.

See notes to financial statements

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Municipal Bonds — 133.6%  

Alabama — 1.2%

 

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

  $ 1,655     $ 1,868,594  
   

 

 

 
Alaska — 0.6%  

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 06/01/46

    1,045       1,015,531  
   

 

 

 
Arizona — 3.2%  

Arizona IDA, Refunding RB, Series A(a):

   

Basis Schools, Inc. Projects,
5.13%, 07/01/37

    360       364,871  

5.38%, 07/01/50

    925       939,143  

Odyssey Preparatory Academy Project, 5.50%, 07/01/52

    725       680,724  

City of Phoenix Arizona IDA, RB, Series A:

   

Facility, Eagle College Preparatory Project, 5.00%, 07/01/33

    870       877,760  

Legacy Traditional Schools Projects, 5.00%, 07/01/46(a)

    1,255       1,257,284  

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

   

5.00%, 07/01/35

    125       126,049  

5.00%, 07/01/46

    135       134,390  

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

    725       822,136  
   

 

 

 
      5,202,357  
California — 10.6%  

California Health Facilities Financing Authority, RB:

   

St. Joseph Health System, Series A, 5.75%, 07/01/39

    385       394,694  

Sutter Health, Series B, 6.00%, 08/15/20(b)

    1,040       1,115,265  

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 07/01/19(b)

    680       699,251  

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

   

5.25%, 08/15/39

    70       75,337  

5.25%, 08/15/49

    175       187,402  

City & County of San Francisco California Redevelopment Agency, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Series D, 0.00%, 08/01/31(a)(c)

    1,265       671,538  

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

   

Senior, 5.00%, 05/15/40

    2,045       2,119,356  

5.25%, 05/15/39

    270       274,290  

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

    165       191,123  

County of California Tobacco Securitization Agency, Refunding RB, Golden Gate Tobacco Funding Corp., Series A, 5.00%, 06/01/47

    140       137,430  

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

   

5.70%, 06/01/46

    1,000       1,000,750  

5.60%, 06/01/36

    2,000       2,002,660  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.25%, 06/01/47

    535       537,921  

San Marcos Unified School District, GO, CAB, SAN, Election of 2010, Series B, 0.00%, 08/01/38(c)

    3,725       1,655,241  

State of California, GO, Various Purposes:

   

6.50%, 04/01/19(b)

    1,085       1,106,819  

6.50%, 04/01/33

    915       931,864  

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

   

Series I, 5.00%, 11/01/38

    355       387,032  

Sub-Series I-1, 6.38%, 11/01/19(b)

    400       418,372  
Security   Par
(000)
    Value  
California (continued)  

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

   

5.00%, 06/01/37

  $ 2,150     $ 2,155,332  

5.13%, 06/01/46

    1,005       1,007,492  
   

 

 

 
      17,069,169  
Colorado — 4.5%  

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

    275       274,145  

Colorado Health Facilities Authority, Refunding RB, Series A:

   

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

    3,940       4,043,898  

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

    160       165,411  

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

    1,550       1,627,670  

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

    1,000       1,022,920  
   

 

 

 
      7,134,044  
Connecticut — 0.9%  

Connecticut Housing Finance Authority, Refunding RB, S/F Housing, Sub-Series B-1, 4.00%, 05/15/45

    515       501,826  

Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 02/01/30(a)

    860       932,756  
   

 

 

 
      1,434,582  
Delaware — 1.9%  

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

    750       793,185  

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

    2,240       2,323,776  
   

 

 

 
      3,116,961  
District of Columbia — 1.4%  

District of Columbia, Refunding RB, Kipp Charter School, Series A, 6.00%, 07/01/23(b)

    260       301,306  

District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 06/01/41

    750       791,377  

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

   

5.00%, 10/01/39

    170       173,657  

5.25%, 10/01/44

    1,000       1,023,480  
   

 

 

 
      2,289,820  
Florida — 5.4%  

Capital Region Community Development District, Refunding, Special Assessment, Capital Improvement:

   

Revenue Bond, Series A-1, 5.13%, 05/01/39

    210       203,272  

Series A-2, 4.60%, 05/01/31

    515       503,134  

Capital Trust Agency, Inc., RB, University Bridge LLC Student Housing Project, Series A, 5.25%, 12/01/58(a)

    910       880,198  

County of Miami-Dade Florida Water & Sewer System Revenue, RB, Water & Sewer System,
5.00%, 10/01/20(b)

    1,950       2,055,124  

Florida Development Finance Corp., RB, Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 08/01/29(a)(e)

    740       758,219  

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

   

4.00%, 05/01/21

    100       100,632  

4.25%, 05/01/26

    100       99,556  

5.13%, 05/01/46

    400       393,336  

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

    1,080       1,225,552  
 

 

 

24    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

Tolomato Community Development District, Refunding, Special Assessment Bonds(d):

   

Convertible CAB, Series A3, 6.61%, 05/01/40

  $ 225     $ 218,736  

Convertible CAB, Series A4, 6.61%, 05/01/40

    120       97,554  

Series 2015-2, 6.61%, 05/01/40

    310       203,134  

Tolomato Community Development District(f)(g):

   

Series 1, 6.61%, 05/01/40(d)

    505       402,202  

Series 1, 6.65%, 05/01/40

    15       14,293  

Series 3, 6.61%, 05/01/40

    340       3  

Series 3, 6.65%, 05/01/40

    275       3  

Trout Creek Community Development District, Special Assessment Bonds:

   

5.50%, 05/01/49

    570       562,527  

5.00%, 05/01/28

    160       158,333  

Village Community Development District No.10, Special Assessment Bonds, 5.13%, 05/01/43

    790       851,604  
   

 

 

 
      8,727,412  
Georgia — 0.2%  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54

    240       267,864  

County of Georgia Housing & Finance Authority, RB, S/F Housing, Series A, 4.00%, 12/01/48

    10       9,794  
   

 

 

 
      277,658  
Guam — 0.0%  

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

    45       45,562  
   

 

 

 
Idaho — 0.4%  

Idaho Health Facilities Authority, Refunding RB, St. Luke’s Health System Project, Series A, 4.00%, 03/01/43

    45       42,454  

State of Idaho Building Authority, RB, Department of Health And Welfare Project, 4.00%, 09/01/48(h)

    650       637,299  
   

 

 

 
      679,753  
Illinois — 12.4%  

Chicago Board of Education, GO, Dedicated Revenues:

   

Series H, 5.00%, 12/01/36

    935       942,433  

Project, Series C, 5.25%, 12/01/35

    795       809,445  

Chicago Board of Education, GO, Refunding, Series C:

   

5.00%, 12/01/27

    415       429,060  

5.00%, 12/01/34

    940       950,904  

Chicago Board of Education, GO, Refunding Series F, 5.00%, 12/01/22

    325       337,113  

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

   

6.00%, 01/01/38

    595       660,093  

Project, 5.25%, 01/01/32

    1,090       1,136,914  

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

   

5.75%, 01/01/21(b)

    2,100       2,258,004  

5.75%, 01/01/39

    400       423,900  

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

    360       378,022  

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

    350       363,790  

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

   

5.38%, 04/01/19

    870       882,241  

5.38%, 04/01/19

    975       988,718  

Illinois Finance Authority, Refunding RB:

   

Central Dupage Health, Series B, 5.50%,
11/01/19(b)

    550       568,579  

Presence Health Network, Series C, 5.00%, 02/15/41

    1,500       1,627,950  

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.50%, 06/15/53

    200       211,060  
Security   Par
(000)
    Value  
Illinois (continued)  

Metropolitan Pier & Exposition Authority, Refunding RB:

   

McCormick Place Expansion Project, Series B (AGM), 5.00%, 06/15/50

  $ 1,790     $ 1,835,824  

McCormick Place Expansion Project, Series B-2, 5.00%, 06/15/50

    1,400       1,400,574  

McCormik Place Expansion Project, Series B, 5.00%, 06/15/52

    225       230,812  

State of Illinois, GO:

   

5.00%, 05/01/27

    500       514,015  

5.00%, 01/01/28

    1,005       1,032,326  

5.00%, 03/01/37

    755       763,713  

Series A, 5.00%, 01/01/33

    555       563,064  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44

    475       505,509  
   

 

 

 
      19,814,063  
Indiana — 6.4%  

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

   

6.75%, 01/01/34

    365       416,870  

7.00%, 01/01/44

    885       1,015,697  

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

    1,095       1,113,702  

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

   

6.63%, 01/15/34

    135       141,456  

6.75%, 01/15/43

    200       209,188  

6.88%, 01/15/52

    560       586,880  

Indiana Finance Authority, RB, Series A:

   

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

    1,285       1,373,588  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44

    160       167,501  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48

    520       543,020  

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

    2,190       2,306,245  

Sisters of St. Francis Health Services, 5.25%, 11/01/19(b)

    290       299,086  

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

   

5.75%, 05/01/19(b)

    500       509,355  

5.75%, 05/01/31

    100       101,896  

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

    350       352,380  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40

    445       483,546  

Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 01/15/51(a)

    560       569,397  
   

 

 

 
      10,189,807  
Iowa — 1.2%  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

Series B, 5.25%, 12/01/50(e)

    825       876,084  

Midwestern Disaster Area, 5.50%, 12/01/22

    5       5,009  

Midwestern Disaster Area, 5.25%, 12/01/25

    660       697,257  

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

    360       370,487  
   

 

 

 
      1,948,837  
Kentucky — 0.6%  

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

    460       483,630  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43(d)

    565       517,088  
   

 

 

 
      1,000,718  
 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Louisiana — 2.3%  

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

  $ 1,135     $ 1,216,936  

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

   

5.50%, 05/15/30

    350       363,570  

5.25%, 05/15/31

    300       315,987  

5.25%, 05/15/32

    380       405,057  

5.25%, 05/15/33

    415       439,377  

5.25%, 05/15/35

    945       1,000,093  
   

 

 

 
      3,741,020  
Maine — 0.6%  

Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 07/01/41

    970       1,028,889  
   

 

 

 
Maryland — 1.1%  

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 06/01/20(b)

    970       1,025,047  

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25

    645       665,963  
   

 

 

 
      1,691,010  
Massachusetts — 4.7%  

Massachusetts Development Finance Agency, RB:

   

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

    860       901,031  

Boston Medical Center, Series D, 5.00%, 07/01/44

    1,000       1,044,250  

North Hill Communities Issue, Series A,
6.50%, 11/15/23(a)(b)

    1,000       1,186,600  

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

    945       978,037  

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

    500       530,830  

Massachusetts HFA, Refunding RB, Series A, AMT, 4.45%, 12/01/42

    645       654,533  

Massachusetts Housing Finance Agency, Refunding RB, Series A, AMT, 4.50%, 12/01/47

    2,135       2,166,513  
   

 

 

 
      7,461,794  
Michigan — 1.6%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39

    1,970       2,085,403  

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44

    410       433,415  
   

 

 

 
      2,518,818  
Minnesota — 2.2%  

City of Brooklyn Park Minnesota, RB, Athlos Leadership Academy Project, Series A, 5.75%, 07/01/46

    180       181,071  

City of Minneapolis, Refunding RB, Fairview Health Servises, Series A, 4.00%, 11/15/48

    80       76,362  

Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A(h):

   

4.25%, 02/15/48

    1,940       1,852,273  

5.25%, 02/15/58

    655       690,888  

Housing & Redevelopment Authority of The City of State Paul Minnesota, Refunding RB, Hmong College Academy Project, Series A, 5.50%, 09/01/36

    690       709,375  
   

 

 

 
      3,509,969  
Missouri — 0.6%  

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

    85       92,115  
Security   Par
(000)
    Value  
Missouri (continued)  

City of St. Louis Missouri IDA, Refunding RB, BallPark Village Development Project, Series A:

   

4.38%, 11/15/35

  $ 330     $ 331,218  

4.75%, 11/15/47

    365       367,175  

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43

    115       120,876  
   

 

 

 
      911,384  
Nebraska — 0.2%  

Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.25%, 09/01/37

    285       308,780  
   

 

 

 
New Jersey — 7.3%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    475       500,945  

5.25%, 11/01/44

    1,160       1,220,216  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(a)

    505       506,555  

New Jersey Economic Development Authority, RB, State House project, Series B (BAM), 4.13%, 06/15/39

    130       127,954  

New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23

    1,410       1,503,116  

New Jersey EDA, Refunding RB, Series BBB, 5.50%, 06/15/31

    1,225       1,345,025  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31

    785       848,373  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.00%, 06/15/45

    585       602,568  

Transportation System, Series B, 5.25%, 06/15/36

    845       879,738  

New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/35

    965       1,016,666  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/36

    530       570,073  

Series A, 5.00%, 06/01/46

    1,700       1,754,808  

Series A, 5.25%, 06/01/46

    440       465,084  

Sub-Series B, 5.00%, 06/01/46

    420       425,410  
   

 

 

 
      11,766,531  
New York — 29.5%  

City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 11/01/38(h)

    2,390       2,358,165  

City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series HH, 5.00%, 06/15/31

    2,830       3,007,498  

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

   

6.25%, 06/01/41(a)

    900       926,082  

5.00%, 06/01/42

    1,505       1,448,487  

5.00%, 06/01/45

    555       529,858  

Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through, Series A-2B, 5.00%, 06/01/51

    1,000       1,021,470  

County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 08/01/46

    730       686,200  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45

    910       875,283  

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

   

5.75%, 02/15/21(b)

    4,030       4,358,405  

5.75%, 02/15/47

    2,480       2,653,898  

Metropolitan Transportation Authority, RB, Series B:

   

5.25%, 11/15/38

    1,125       1,237,545  

5.25%, 11/15/39

    400       439,804  
 

 

 

26    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

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

  $ 6,140     $ 6,626,226  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

    420       436,397  

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

    2,355       2,411,591  

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

    160       164,930  

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

    395       406,771  

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

    2,220       2,420,155  

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

    1,000       1,052,380  

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

    730       781,618  

State of New York Dormitory Authority, RB, Series B, 5.75%, 03/15/19(b)

    11,250       11,412,900  

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

    455       491,532  

Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C, 4.00%, 06/01/42

    1,700       1,577,209  
   

 

 

 
      47,324,404  
North Carolina — 0.5%  

North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 06/01/19(b)

    480       488,655  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21(b)

    260       291,522  
   

 

 

 
      780,177  
North Dakota — 0.1%  

County of Cass North Dakota, Refunding RB, Essentia Health Obligated Group, Series B, 4.25%, 02/15/43(h)

    230       221,545  
   

 

 

 
Ohio — 4.8%  

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

   

5.75%, 06/01/34

    2,295       2,209,878  

5.88%, 06/01/47

    1,100       1,068,089  

County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 06/01/20(b)

    2,650       2,773,570  

County of Ohio Housing Finance Agency, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 09/01/48

    355       345,919  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53

    1,220       1,274,693  
   

 

 

 
      7,672,149  
Oklahoma — 3.2%  

Oklahoma Development Finance Authority, RB:

   

OU Medicine Project, Series B, 5.00%, 08/15/38

    1,450       1,520,833  

OU Medicine Project, Series B, 5.25%, 08/15/43

    1,305       1,385,949  

Provident Oklahoma Education Resources, Inc., Cross Village Student Housing Project, Series A, 5.25%, 08/01/57

    1,290       1,187,006  

Tulsa County Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/45

    925       993,792  
   

 

 

 
      5,087,580  
Security   Par
(000)
    Value  
Oregon — 0.2%  

County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38(c)

  $ 625     $ 271,894  
   

 

 

 
Pennsylvania — 2.4%  

Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project, 5.00%, 05/01/42(a)

    470       488,123  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42

    300       315,192  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49

    155       147,600  

Pennsylvania Economic Development Financing Authority, RB, Pennsylvania Rapid Bridge Replacement, 5.00%, 12/31/38

    465       487,887  

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

    720       744,099  

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

    1,190       1,157,775  

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

    520       557,076  
   

 

 

 
      3,897,752  
Puerto Rico — 1.2%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43

    1,860       1,885,315  
   

 

 

 
Rhode Island — 2.7%  

Rhode Island Student Loan Authority, Refunding RB, Senior-Series A, AMT, 3.50%, 12/01/34

    655       628,374  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/40

    420       436,926  

Series B, 4.50%, 06/01/45

    1,875       1,849,181  

Series B, 5.00%, 06/01/50

    1,360       1,394,422  
   

 

 

 
      4,308,903  
South Carolina — 2.2%  

State of South Carolina Public Service Authority, RB:

   

Santee Cooper, Series A, 5.50%, 12/01/54

    1,840       1,949,388  

Series E, 5.00%, 12/01/48

    420       434,242  

Series E, 5.50%, 12/01/53

    750       791,003  

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

    400       423,220  
   

 

 

 
      3,597,853  
Tennessee — 0.7%  

County of Memphis-Shelby Tennessee Industrial Development Board, Refunding, Tax Allocation Bonds, Senior Tax Increment, Graceland Project, Series A:

   

5.50%, 07/01/37

    490       515,108  

5.63%, 01/01/46

    570       593,541  
   

 

 

 
      1,108,649  
Texas — 8.1%  

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

    730       790,181  

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

    210       247,141  

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

    700       731,962  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 0.00%, 09/15/37(c)

    5,200       2,288,520  
 

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare(b):

   

6.00%, 08/15/20

  $ 105     $ 111,947  

6.00%, 08/15/20

    1,285       1,371,185  

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

    3,000       1,469,880  

Mission Economic Development Corp., Refunding RB, Senior Lien, Natural Gasoline Project, AMT,
4.63%, 10/01/31(a)(h)

    430       428,534  

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

    875       901,469  

New Hope Cultural Education Facilities Finance Corp., RB, Legacy Midtown Park Project, Series A, 5.50%, 07/01/54

    125       120,091  

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

   

5.50%, 08/15/35

    135       140,012  

5.75%, 08/15/45

    275       285,920  

North Texas Tollway Authority, Refunding RB(h):

   

4.25%, 01/01/49

    2,125       2,085,900  

5.00%, 01/01/50

    430       462,607  

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

   

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

    1,025       1,066,215  

LBJ Infrastructure Group LLC, 7.00%, 06/30/40

    500       532,315  
   

 

 

 
      13,033,879  
Utah — 1.2%  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19(b)

    1,815       1,858,215  
   

 

 

 
Virginia — 2.9%  

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

   

5.00%, 03/01/26

    260       264,340  

5.13%, 03/01/31

    510       519,481  

Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 06/01/47

    1,025       1,004,182  

Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 07/01/45(a)

    240       244,063  

Virginia HDA, RB, Rental Housing, Series F, 5.00%, 04/01/45

    1,000       1,018,140  

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

    1,540       1,675,643  
   

 

 

 
      4,725,849  
Washington — 0.9%  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40

    350       374,727  

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

    1,020       1,103,222  
   

 

 

 
      1,477,949  
Wisconsin — 1.5%  

Public Finance Authority, RB, Series A:

   

Alabama Proton Therapy Center, 6.25%, 10/01/31(a)

    290       275,935  

Alabama Proton Therapy Center, 7.00%, 10/01/47(a)

    290       276,547  

5.00%, 12/01/45

    825       836,748  

5.15%, 12/01/50

    555       564,524  

Public Finance Authority, Refunding RB, Celanese Project(a):

   

Series C, AMT, 4.30%, 11/01/30

    200       202,688  

Series D, 4.05%, 11/01/30

    200       198,312  
   

 

 

 
      2,354,754  
   

 

 

 

Total Municipal Bonds — 133.6%
(Cost — $207,649,214)

 

    214,359,930  
   

 

 

 
Security   Par
(000)
    Value  
Municipal Bonds Transferred to Tender Option Bond Trusts(i)  

California — 3.2%

 

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 04/01/19(b)

  $ 1,090     $ 1,108,129  

City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, Series B, AMT, 5.00%, 05/15/46

    2,700       2,912,396  

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

    495       544,334  

San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(b)

    553       567,729  
   

 

 

 
      5,132,588  
Colorado — 0.5%  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 07/01/34(j)

    740       756,114  
   

 

 

 
Georgia — 0.6%  

County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48

    1,025       1,002,233  
   

 

 

 
Idaho — 1.3%  

Idaho State Building Authority, RB, State Office Campus Project, Series A, 4.00%, 09/01/48

    2,120       2,101,651  
   

 

 

 
Illinois — 2.6%  

Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 08/15/41

    2,340       2,529,715  

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

    1,498       1,621,753  
   

 

 

 
      4,151,468  
Iowa — 1.1%  

Iowa Finance Authority, Refunding RB, UnityPoint Health, Series E, 4.00%, 08/15/46

    1,815       1,713,045  
   

 

 

 
Massachusetts — 4.7%  

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

    7,112       7,539,643  
   

 

 

 
New Hampshire — 0.4%  

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 06/01/19(b)(j)

    660       672,389  
   

 

 

 
New York — 1.1%  

City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40

    495       504,519  

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

    1,215       1,341,935  
   

 

 

 
      1,846,454  
North Carolina — 1.6%  

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

    1,180       1,298,289  

North Carolina Housing Finance Agency, RB, S/F Housing, Series 39-B (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 01/01/48

    1,232       1,211,197  
   

 

 

 
      2,509,486  
Ohio — 2.9%  

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

    4,634       4,660,891  
   

 

 

 
Pennsylvania — 1.2%  

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

    1,680       1,880,642  
   

 

 

 
 

 

 

28    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Rhode Island — 1.5%  

Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 09/15/47

  $ 2,447     $ 2,357,969  
   

 

 

 
Texas — 9.5%  

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

    11,000       11,792,083  

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

   

5.00%, 08/15/19(b)

    1,202       1,225,972  

5.00%, 08/15/38

    920       937,762  

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

    1,170       1,240,861  
   

 

 

 
      15,196,678  
Virginia — 3.5%  

Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A, 5.50%, 07/01/57(j)

    2,224       2,562,616  

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

    2,949       3,061,626  
   

 

 

 
      5,624,242  
West Virginia — 1.1%  

Morgantown Utility Board, Inc., RB, Series B, 4.00%, 12/01/48(j)

    1,891       1,820,496  
   

 

 

 
Wisconsin — 1.2%  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group, Series C, 5.25%, 04/01/19(b)(j)

    1,989       2,016,423  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 38.0%
(Cost — $60,322,966)

 

    60,982,412  
   

 

 

 

Total Long-Term Investments — 171.6%
(Cost — $267,972,180)

 

    275,342,342  
   

 

 

 

Security

  Shares     Value  
Short-Term Securities — 1.2%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.45%(k)(l)

    1,859,335     $ 1,859,521  
   

 

 

 

Total Short-Term Securities — 1.2%
(Cost — $1,859,521)

 

    1,859,521  
   

 

 

 

Total Investments — 172.8%
(Cost — $269,831,701)

 

    277,201,863  

Liabilities in Excess of Other Assets — (2.5)%

 

    (4,031,020

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (23.2)%

 

    (37,185,026

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (47.1)%

 

    (75,589,227
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 160,396,590  
 

 

 

 

 

(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) 

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

(e) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(f) 

Issuer filed for bankruptcy and/or is in default.

(g) 

Non-income producing security.

(h) 

When-issued security.

(i) 

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.

(j) 

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 December 1, 2018 to April 1, 2039, $6,074,475. See Note 4 of the Notes to Financial Statements for details.

(k) 

Annualized 7-day yield as of period end.

 
(l) 

During the period ended October 31, 2018, 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
04/30/18
     Net
Activity
     Shares
Held at
10/31/18
     Value at
10/31/18
     Income      Net
Realized
Gain (Loss) (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     2,374,394        (515,059      1,859,335      $ 1,859,521      $ 4,469      $ 228      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, 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

     7        12/19/18      $ 829      $ 5,489  

Long U.S. Treasury Bond

     35        12/19/18        4,834        97,140  

5-Year U.S. Treasury Note

     9        12/31/18        1,011        5,235  
           

 

 

 
            $ 107,864  
           

 

 

 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Long-Term Municipal Advantage Trust (BTA)

 

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)

   $      $      $      $      $ 107,864      $      $ 107,864  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the period ended October 31, 2018, 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

   $      $      $      $      $ 145,152      $      $ 145,152  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ 87,997      $      $ 87,997  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 8,897,754  

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

Fair Value Hierarchy as of Period End

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

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments(a)

   $        $ 275,342,342        $        $ 275,342,342  

Short-Term Securities

     1,859,521                            1,859,521  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,859,521        $ 275,342,342        $        $ 277,201,863  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments (b)

 

Assets:

 

Interest rate contracts

   $ 107,864        $        $        $ 107,864  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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 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

   $        $ (37,048,279      $        $ (37,048,279

VRDP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (113,048,279      $        $ (113,048,279
  

 

 

      

 

 

      

 

 

      

 

 

 

During the period ended October 31, 2018, there were no transfers between levels.

 

 

30    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock Municipal 2020 Term Trust (BKK)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Municipal Bonds — 98.1%  

Alabama — 0.4%

 

Alabama 21st Century Authority Tobacco Settlement, Refunding RB, Series A, 5.00%, 06/01/20

  $ 1,000     $ 1,039,910  

Tuscaloosa City Board of Education, RB, 5.00%, 08/01/20

    225       236,012  
   

 

 

 
      1,275,922  
Alaska — 2.0%  

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

   

Series B, 5.00%, 01/01/21

    3,200       3,368,768  

Series C, 5.00%, 01/01/21

    2,500       2,631,850  
   

 

 

 
      6,000,618  
Arizona — 3.2%  

City of Phoenix Arizona IDA, RB, Series A, 4.75%, 07/01/19(a)

    180       181,883  

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

   

5.00%, 07/01/19(b)

    5,585       5,698,934  

5.00%, 07/01/20

    1,300       1,359,761  

Salt Verde Financial Corp., RB, Senior:

   

5.00%, 12/01/18

    1,500       1,503,390  

5.25%, 12/01/20

    1,000       1,054,560  
   

 

 

 
      9,798,528  
California — 5.7%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.00%, 08/15/20(b)

    815       859,727  

Los Angeles California Unified School District, GO, Series I, 5.00%, 07/01/20

    3,750       3,826,725  

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

   

5.00%, 01/01/19

    540       542,662  

5.00%, 01/01/20

    550       567,518  

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

    1,000       1,114,160  

State of California Department of Water Resources, Refunding RB, Series L, 5.00%, 05/01/20

    10,000       10,464,600  
   

 

 

 
      17,375,392  
Colorado — 1.3%  

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

   

Series A, 5.00%, 12/01/20

    690       730,372  

Series B, 5.00%, 12/01/20

    1,335       1,413,111  

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

    493       493,552  

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

   

4.00%, 08/15/19

    125       126,622  

4.00%, 08/15/20

    150       153,876  

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

   

4.00%, 12/01/19

    555       565,301  

4.00%, 12/01/20

    580       597,284  
   

 

 

 
      4,080,118  
Florida — 1.9%  

County of Escambia Florida, RB, Gulf Power Co. Project, 1.80%, 04/01/39(c)

    2,500       2,448,625  

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

    1,375       1,438,291  

County of Miami-Dade Florida Expressway Authority, Refunding RB, Toll System, Series A, 5.00%, 07/01/20

    500       522,985  
Security   Par
(000)
    Value  
Florida (continued)  

Stevens Plantation Community Development District, Special Assessment Bonds, Series B, 6.38%, 05/01/13(d)(e)

  $ 2,980     $ 1,482,550  
   

 

 

 
      5,892,451  
Georgia — 2.2%  

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

    6,240       6,629,002  
   

 

 

 
Guam — 0.5%  

Guam Government Waterworks Authority, RB, 5.25%, 07/01/20

    250       259,343  

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

    1,190       1,246,834  
   

 

 

 
      1,506,177  
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       1,317,623  

5.00%, 11/15/20

    1,440       1,525,464  
   

 

 

 
      2,843,087  
Illinois — 13.4%  

Chicago Transit Authority, Refunding RB, 5.00%, 06/01/20

    1,000       1,037,540  

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

    1,000       1,019,670  

City of Chicago Illinois Waterworks Revenue, Refunding RB, 2nd Lien (AGM):

   

5.00%, 11/01/18(b)

    4,040       4,040,000  

5.00%, 11/01/20

    960       962,410  

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

    1,000       1,058,320  

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick, Series A (NPFGC), 0.00%, 06/15/22(f)

    13,455       11,766,263  

Railsplitter Tobacco Settlement Authority, RB, 5.25%, 06/01/20

    10,000       10,420,200  

State of Illinois, GO