UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number:811-21835
Name of Fund: BlackRock Long-Term Municipal Advantage Trust (BTA)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Long-Term
Municipal Advantage 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: 04/30/2019
Item 1 – Report to Stockholders
APRIL 30, 2019
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ANNUAL REPORT | |  |
BlackRock Investment Quality Municipal Trust, Inc. (BKN)
BlackRock Long-Term Municipal Advantage Trust (BTA)
BlackRock Municipal Income Trust (BFK)
BlackRock Strategic Municipal Trust (BSD)
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Trust’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call Computershare at (800) 699-1236 to request that you continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC or its affiliates, or all funds held with your financial intermediary, as applicable.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.
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| Not FDIC Insured • May Lose Value • No Bank Guarantee |
The Markets in Review
Dear Shareholder,
In the 12 months ended April 30, 2019, the U.S. equity and bond markets posted positive returns while weathering significant volatility. Though the market’s appetite for risk remained healthy for most of the reporting period, risk taking declined sharply in late 2018. Thereafter, global equity markets rebounded strongly, as inflation diminished and the U.S. Federal Reserve (the “Fed”) announced a shift to less restrictive monetary policy.
Volatility rose in emerging market stocks, as the rising U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. 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 also led to negative performance for European equities. However, recent economic data indicates that Europe may emerge from its economic soft patch, reinvigorated by a manufacturing rebound and China’s economic stimulus.
In the U.S. equity market, volatility spiked in October, as a wide range of risks were brought to bear on markets, ranging from rising interest rates and slowing global growth to heightened trade tensions and political turmoil in several countries, including the United States. These risks manifested in a broad-basedsell-off in December, leading to the worst December performance on record since 1931.
By comparison, fixed-income securities delivered modest positive returns with relatively low volatility. In fixed-income markets, short-term U.S. Treasury yields rose, while longer-term yields declined slightly. This led to positive returns for U.S. Treasuries and a substantial flattening of the yield curve. Investment-grade and high-yield corporate bonds also posted positive returns, as the credit fundamentals in corporate markets remained relatively solid.
The Fed shifted to a more patient perspective on the economy after increasing interest rates three times. In its last four meetings, the Fed left interest rates unchanged and signaled a slower pace of rate hikes in response to the global economic slowdown. Relatively low inflation and modest economic growth give the Fed room to maintain support for the economy until the economic data builds the case for changing interest rates. Similarly, the European Central Bank signaled a continuation of accommodative monetary policy, while China committed to looser credit conditions and an increase in fiscal spending. The shift toward more stimulative economic policy helped equity markets rebound in 2019.
We continue to believe the probability of recession in 2019 remains relatively low. Economic growth and global earnings are likely to slow somewhat in 2019 because the tax cut stimulus will be less pronounced, and the Fed’s rate hikes in 2018 will gain traction in 2019. We expect profit margins to continue to contract, which tends to happen late in the business cycle.
In this environment, U.S. and emerging market equities remain relatively attractive. Within U.S. equities, we believe that companies with high-quality earnings and strong balance sheets offer the most attractive risk/rewardtrade-off. For bonds, U.S. Treasuries are likely to help buffer against volatility in risk assets, while income from other types of bonds can continue to offer steady returns.
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 visitblackrock.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
Rob Kapito
President, BlackRock Advisors, LLC
| | | | |
| Total Returns as of April 30, 2019 |
| | | 6-month | | 12-month |
U.S. large cap equities
(S&P 500® Index) | | 9.76% | | 13.49% |
U.S. small cap equities
(Russell 2000® Index) | | 6.06 | | 4.61 |
International equities
(MSCI Europe, Australasia, Far East Index) | | 7.45 | | (3.22) |
Emerging market equities
(MSCI Emerging Markets Index) | | 13.76 | | (5.04) |
3-month Treasury bills
(ICE BofAML3-Month U.S. Treasury Bill Index) | | 1.18 | | 2.18 |
U.S. Treasury securities
(ICE BofAML10-Year U.S. Treasury Index) | | 7.09 | | 6.44 |
U.S. investment grade bonds
(Bloomberg Barclays U.S. Aggregate Bond Index) | | 5.49 | | 5.29 |
Tax-exempt municipal bonds
(S&P Municipal Bond Index) | | 5.36 | | 5.84 |
U.S. high yield bonds
(Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index) | | 5.54 | | 6.74 |
| Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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| 2 | | THIS PAGEISNOT PARTOF YOUR FUND REPORT |
Table of Contents
Municipal Market Overview For the Reporting Period Ended April 30, 2019
Municipal Market Conditions
Municipal bonds experienced solid performance during the period, despite challenged total returns during most of 2018 as interest rates moved higher on the back of continued Fed policy normalization, fiscal stimulus, strong economic growth, and increased U.S. Treasury issuance. Performance turned stronger late in the year, with interest rates rallying as the Fed tilted more dovish and indicated a pivot from forecast based to data driven policy and await-and-see approach on future rate hikes. During the period, demand for the asset class remained incredibly firm, although displayed some bouts of volatility. Broadly, investors favored thetax-exempt income, diversification, quality, and value of municipal bonds given that tax reform ultimately lowered the top individual tax rate just 2.6% while eliminating deductions. During the 12 months ended April 30, 2019, municipal bond funds experienced net inflows of approximately $27.8 billion (based on data from the Investment Company Institute).
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| For the same12-month period, total new issuance underwhelmed from a historical perspective at just $321 billion (below the $385 billion issued in the prior12-month period), a direct result of the elimination of advanced refundings through the 2017 Tax Cuts and Jobs Act. This transitioned the market to a favorable net negative supply environment in which reinvestment income (coupons, calls, and maturities) largely outstripped gross issuance and provided a powerful technical tailwind. | | S&P Municipal Bond Index |
| | Total Returns as of April 30, 2019 |
| | 6 months: 5.36% |
| | 12 months: 5.84% |
A Closer Look at Yields
From April 30, 2018 to April 30, 2019, yields onAAA-rated30-year municipal bonds decreased by 54 basis points (“bps”) from 3.09% to 2.55%, whileten-year rates decreased by 63 bps from 2.49% to 1.86% and five-year rates decreased by 56 bps from 2.19% to 1.63% (as measured by Thomson Municipal Market Data). As a result, the municipal yield curve flattened over the12-month period with the spread betweentwo- and30-year maturities flattening by 24 bps, led by 33 bps of flattening betweentwo- andten-year maturities. |
During the same time period, on a relative basis,tax-exempt municipal bonds strongly outperformed U.S. Treasuries, driven by the long end 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 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 April 30, 2019 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.
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| 4 | | 2019 BLACKROCK ANNUAL REPORTTO 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 (after paying the leverage costs) is paid to shareholders in the form of dividends, and the value of these portfolio holdings (less the leverage liability) 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 amount 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 331⁄3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Trust may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Trust may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.
If a Trust segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Trust’s obligations under the TOB Trust (including accrued interest), 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.
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| THE BENEFITSAND RISKSOF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS | | | 5 | |
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| Trust Summary as of April 30, 2019 | | 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
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Symbol on New York Stock Exchange (“NYSE”) | | BKN |
Initial Offering Date | | February 19, 1993 |
Yield on Closing Market Price as of April 30, 2019 ($14.31)(a) | | 4.78% |
Tax Equivalent Yield(b) | | 8.07% |
Current Monthly Distribution per Common Share(c) | | $0.0570 |
Current Annualized Distribution per Common Share(c) | | $0.6840 |
Leverage as of April 30, 2019(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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5. | |
Performance
Returns for the 12 months ended April 30, 2019 were as follows:
| | | | | | | | |
| | | Returns Based On | |
| | | Market Price | | | NAV | |
BKN(a)(b) | | | 10.81 | % | | | 8.45 | % |
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) | | | 10.02 | | | | 6.95 | |
| | (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. | |
| | (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. | |
| | (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on theex-dividend date 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:
After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.
The rally in municipal bond prices provided a tailwind for the Trust. Portfolio income was also a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of both income and rising bond prices. However, the cost of leverage increased during the period due to the Fed’s three interest rate increases.
During the latter part of the period, municipal investors began to reach for yield amid a strong backdrop for both fundamentals andsupply-and-demand factors. In this environment, the Trust benefited from allocations to the long end of the yield curve, lower-rated investment-grade bonds, and bothlow- andzero-coupon bonds.
At the sector level, positions in the statetax-backed, health care and transportation issues made the largest contribution to performance.
The Trust actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a negative effect on returns.
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.
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| 6 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
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| Trust Summary as of April 30, 2019 (continued) | | BlackRock Investment Quality Municipal Trust, Inc. |
Market Price and Net Asset Value Per Share Summary
| | | | | | | | | | | | | | | | | | | | |
| | | 04/30/19 | | | 04/30/18 | | | Change | | | High | | | Low | |
Market Price | | $ | 14.31 | | | $ | 13.57 | | | | 5.45 | % | | $ | 14.49 | | | $ | 12.72 | |
Net Asset Value | | | 15.75 | | | | 15.26 | | | | 3.21 | | | | 15.75 | | | | 14.76 | |
Market Price and Net Asset Value History For the Past Five Years
Overview of the Trust’s Total Investments*
SECTOR ALLOCATION
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| Sector | | 04/30/19 | | | 04/30/18 | |
County/City/Special District/School District | | | 20 | % | | | 14 | % |
Transportation | | | 16 | | | | 15 | |
Health | | | 15 | | | | 20 | |
State | | | 11 | | | | 9 | |
Education | | | 10 | | | | 15 | |
Utilities | | | 10 | | | | 8 | |
Corporate | | | 7 | | | | 6 | |
Tobacco | | | 6 | | | | 5 | |
Housing | | | 5 | | | | 1 | |
Financing & Development | | | — | | | | 4 | |
Public Service | | | — | | | | 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, | | | | |
2019 | | | 5 | % |
2020 | | | 6 | |
2021 | | | 9 | |
2022 | | | 13 | |
2023 | | | 10 | |
| | (c) | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. | |
| | * | Excludes short-term securities. | |
CREDIT QUALITY ALLOCATION (a)
| | | | | | | | |
| Credit Rating | | 04/30/19 | | | 04/30/18 | |
AAA/Aaa | | | 4 | % | | | 4 | % |
AA/Aa | | | 37 | | | | 35 | |
A | | | 27 | | | | 27 | |
BBB/Baa | | | 17 | | | | 16 | |
BB/Ba | | | 2 | | | | 3 | |
B/B | | | 4 | | | | 3 | |
CC | | | 1 | | | | — | |
N/R(b) | | | 8 | | | | 12 | |
| | (a) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings (“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 April 30, 2019 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. | |
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| Trust Summary as of April 30, 2019 | | 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 April 30, 2019 ($11.88)(a) | | 5.10% |
Tax Equivalent Yield(b) | | 8.61% |
Current Monthly Distribution per Common Share(c) | | $0.0505 |
Current Annualized Distribution per Common Share(c) | | $0.6060 |
Leverage as of April 30, 2019(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 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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5. | |
Performance
Returns for the 12 months ended April 30, 2019 were as follows:
| | | | | | | | |
| | | Returns Based On | |
| | | Market Price | | | NAV | |
BTA(a)(b) | | | 12.12 | % | | | 7.34 | % |
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) | | | 10.02 | | | | 6.95 | |
| | (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. | |
| | (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. | |
| | (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on theex-dividend date 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:
After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.
The rally in municipal bond prices provided a tailwind for the Trust. Portfolio income was also a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of both income and rising bond prices. However, the cost of leverage increased during the period due to the Fed’s three interest rate increases.
The Trust’s positions in the health care, transportation and utilities sectors contributed to performance.
Holdings in longer-term bonds with maturities of 20 years and above, which outperformed short- and intermediate-term issues, also added value. Lower-quality bonds outpaced higher-quality issues during the period. As a result, positions in BBB andnon-investment grade securities were key contributors.
The Trust actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a small, negative effect on returns.
Reinvestment had an adverse impact 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.
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| 8 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
| Trust Summary as of April 30, 2019 (continued) | | BlackRock Long-Term Municipal Advantage Trust |
Market Price and Net Asset Value Per Share Summary
| | | | | | | | | | | | | | | | | | | | |
| | | 04/30/19 | | | 04/30/18 | | | Change | | | High | | | Low | |
Market Price | | $ | 11.88 | | | $ | 11.20 | | | | 6.07 | % | | $ | 12.37 | | | $ | 10.50 | |
Net Asset Value | | | 12.47 | | | | 12.28 | | | | 1.55 | | | | 12.47 | | | | 11.87 | |
Market Price and Net Asset Value History For the Past Five Years
Overview of the Trust’s Total Investments*
SECTOR ALLOCATION
| | | | | | | | |
| Sector | | 04/30/19 | | | 04/30/18 | |
Health | | | 17 | % | | | 17 | % |
County/City/Special District/School District | | | 17 | | | | 15 | |
Transportation | | | 16 | | | | 14 | |
Utilities | | | 14 | | | | 11 | |
Tobacco | | | 11 | | | | 11 | |
State | | | 8 | | | | 10 | |
Education | | | 8 | | | | 12 | |
Corporate | | | 5 | | | | 6 | |
Housing | | | 4 | | | | 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, | | | | |
2019 | | | 11 | % |
2020 | | | 12 | |
2021 | | | 16 | |
2022 | | | 6 | |
2023 | | | 10 | |
| | (c) | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. | |
| | * | Excludes short-term securities. | |
CREDIT QUALITY ALLOCATION (a)
| | | | | | | | |
| Credit Rating | | 04/30/19 | | | 04/30/18 | |
AAA/Aaa | | | 2 | % | | | 5 | % |
AA/Aa | | | 32 | | | | 36 | |
A | | | 15 | | | | 11 | |
BBB/Baa | | | 20 | | | | 19 | |
BB/Ba | | | 6 | | | | 7 | |
B | | | 7 | | | | 6 | |
N/R(b) | | | 18 | | | | 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 April 30, 2019 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 as of April 30, 2019 | | 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 April 30, 2019 ($13.79)(a) | | 5.09% |
Tax Equivalent Yield(b) | | 8.60% |
Current Monthly Distribution per Common Share(c) | | $0.0585 |
Current Annualized Distribution per Common Share(c) | | $0.7020 |
Leverage as of April 30, 2019(d) | | 38% |
| | (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5. | |
Performance
Returns for the 12 months ended April 30, 2019 were as follows:
| | | | | | | | |
| | | Returns Based On | |
| | | Market Price | | | NAV | |
BFK(a)(b) | | | 13.89 | % | | | 6.98 | % |
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) | | | 10.02 | | | | 6.95 | |
| | (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. | |
| | (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. | |
| | (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on theex-dividend date 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:
After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.
Long-dated securities on the lower end of the investment grade spectrum (those rated A and BBB) were the largest contributors to performance. At the sector level, holdings in transportation,tax-backed and health care issues were key contributors.
The Trust actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a small, negative effect on returns.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
| | |
| 10 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
| Trust Summary as of April 30, 2019 (continued) | | BlackRock Municipal Income Trust |
Market Price and Net Asset Value Per Share Summary
| | | | | | | | | | | | | | | | | | | | |
| | | 04/30/19 | | | 04/30/18 | | | Change | | | High | | | Low | |
Market Price | | $ | 13.79 | | | $ | 12.78 | | | | 7.90 | % | | $ | 13.86 | | | $ | 11.95 | |
Net Asset Value | | | 14.17 | | | | 13.98 | | | | 1.36 | | | | 14.17 | | | | 13.57 | |
Market Price and Net Asset Value History For the Past Five Years
Overview of the Trust’s Total Investments*
SECTOR ALLOCATION
| | | | | | | | |
| Sector | | 04/30/19 | | | 04/30/18 | |
Transportation | | | 24 | % | | | 22 | % |
Utilities | | | 20 | | | | 15 | |
Health | | | 15 | | | | 13 | |
County/City/Special District/School District | | | 12 | | | | 13 | |
State | | | 9 | | | | 14 | |
Tobacco | | | 9 | | | | 8 | |
Education | | | 6 | | | | 7 | |
Corporate | | | 4 | | | | 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, | | | | |
2019 | | | 12 | % |
2020 | | | 13 | |
2021 | | | 14 | |
2022 | | | 10 | |
2023 | | | 7 | |
| | (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 | | 04/30/19 | | | 04/30/18 | |
AAA/Aaa | | | 3 | % | | | 6 | % |
AA/Aa | | | 32 | | | | 40 | |
A | | | 24 | | | | 18 | |
BBB/Baa | | | 24 | | | | 22 | |
BB/Ba | | | 4 | | | | 5 | |
B | | | 4 | | | | 4 | |
CC | | | 1 | | | | — | |
N/R(b) | | | 8 | | | | 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 April 30, 2019 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 as of April 30, 2019 | | 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 April 30, 2019 ($13.21)(a) | | 5.18% |
Tax Equivalent Yield(b) | | 8.75% |
Current Monthly Distribution per Common Share(c) | | $0.0570 |
Current Annualized Distribution per Common Share(c) | | $0.6840 |
Leverage as of April 30, 2019(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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5. | |
Performance
Returns for the 12 months ended April 30, 2019 were as follows:
| | | | | | | | |
| | | Returns Based On | |
| | | Market Price | | | NAV | |
BSD(a)(b) | | | 10.23 | % | | | 6.99 | % |
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) | | | 10.02 | | | | 6.95 | |
| | (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. | |
| | (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. | |
| | (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on theex-dividend date 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:
After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.
The rally in municipal bond prices provided a tailwind for the Trust. Portfolio income was also a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of both income and rising bond prices. However, the cost of leverage increased during the period due to the Fed’s three interest rate increases.
The Trust’s positions in the transportation, health care and thetax-backed sectors contributed to performance.
Holdings in longer-term bonds with maturities of 20 years and above, which outperformed short- and intermediate-term issues, also added value. Lower-quality bonds outpaced higher-quality issues during the period. As a result, positions in A, BBB andnon-investment grade securities were key contributors.
The Trust actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a small, negative effect on returns.
Reinvestment had an adverse impact 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.
| | |
| 12 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
| Trust Summary as of April 30, 2019 (continued) | | BlackRock Strategic Municipal Trust |
Market Price and Net Asset Value Per Share Summary
| | | | | | | | | | | | | | | | | | | | |
| | | 04/30/19 | | | 04/30/18 | | | Change | | | High | | | Low | |
Market Price | | $ | 13.21 | | | $ | 12.65 | | | | 4.43 | % | | $ | 13.49 | | | $ | 11.58 | |
Net Asset Value | | | 14.15 | | | | 13.96 | | | | 1.36 | | | | 14.15 | | | | 13.51 | |
Market Price and Net Asset Value History For the Past Five Years
Overview of the Trust’s Total Investments*
SECTOR ALLOCATION
| | | | | | | | |
| Sector | | 04/30/19 | | | 04/30/18 | |
Transportation | | | 22 | % | | | 22 | % |
Health | | | 18 | | | | 16 | |
County/City/Special District/School District | | | 12 | | | | 15 | |
Utilities | | | 11 | | | | 12 | |
Corporate | | | 9 | | | | 8 | |
Tobacco | | | 8 | | | | 7 | |
State | | | 8 | | | | 10 | |
Education | | | 7 | | | | 8 | |
Housing | | | 5 | | | | 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, | | | | |
2019 | | | 12 | % |
2020 | | | 11 | |
2021 | | | 13 | |
2022 | | | 10 | |
2023 | | | 7 | |
| | (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 | | 04/30/19 | | | 04/30/18 | |
AAA/Aaa | | | 4 | % | | | 4 | % |
AA/Aa | | | 32 | | | | 37 | |
A | | | 20 | | | | 17 | |
BBB/Baa | | | 22 | | | | 24 | |
BB/Ba | | | 3 | | | | 6 | |
B | | | 3 | | | | 4 | |
N/R(b) | | | 16 | | | | 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 April 30, 2019 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. | |
| | |
Schedule of Investments April 30, 2019 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
Municipal Bonds — 131.5% | |
|
| Arizona — 6.5% | |
Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 02/01/42 | | $ | 3,300 | | | $ | 3,505,557 | |
City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, 5.00%, 07/01/45(a) | | | 455 | | | | 473,309 | |
County of Pinal Arizona Electric District No.3, Refunding RB: | | | | | | | | |
4.75%, 07/01/21(b) | | | 680 | | | | 725,968 | |
4.75%, 07/01/31 | | | 3,070 | | | | 3,236,793 | |
Salt Verde Financial Corp., RB, Senior: | | | | | | | | |
5.00%, 12/01/32 | | | 1,035 | | | | 1,277,697 | |
5.00%, 12/01/37 | | | 4,585 | | | | 5,774,349 | |
University Medical Center Corp., RB, 6.50%, 07/01/19(b) | | | 750 | | | | 755,993 | |
University Medical Center Corp., Refunding RB, 6.00%, 07/01/21(b) | | | 1,600 | | | | 1,745,168 | |
| | | | | | | | |
| | | | | | | 17,494,834 | |
|
| Arkansas — 2.0% | |
City of Benton Arkansas, RB, 4.00%, 06/01/39 | | | 755 | | | | 794,773 | |
City of Fort Smith Arkansas Water & Sewer Revenue, Refunding RB, 4.00%, 10/01/40 | | | 1,250 | | | | 1,314,513 | |
City of Little Rock Arkansas, RB, 4.00%, 07/01/41 | | | 2,645 | | | | 2,756,222 | |
County of Pulaski Arkansas Public Facilities Board, RB, 5.00%, 12/01/42 | | | 465 | | | | 510,268 | |
| | | | | | | | |
| | | | | | | 5,375,776 | |
|
| California — 17.5% | |
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 08/15/20(b) | | | 2,300 | | | | 2,428,248 | |
California Infrastructure & Economic Development Bank, Refunding RB, Academy Motion Picture Arts and Sciences, Series A, 4.00%, 11/01/45 | | | 3,330 | | | | 3,459,437 | |
California Statewide Communities Development Authority, Refunding RB, John Muir Health, Series A, 4.00%, 12/01/53 | | | 725 | | | | 738,898 | |
Carlsbad California Unified School District, GO, Election of 2006, Series B, 6.00%, 05/01/34 | | | 1,500 | | | | 1,796,775 | |
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 | | | | 2,584,009 | |
SeriesA-1, 5.75%, 03/01/34 | | | 3,000 | | | | 3,184,950 | |
Golden State Tobacco Securitization Corp., Refunding RB,Series A-1: | | | | | | | | |
3.50%, 06/01/36 | | | 1,275 | | | | 1,268,561 | |
5.00%, 06/01/47 | | | 830 | | | | 812,313 | |
Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 7.00%, 08/01/34(c) | | | 2,475 | | | | 2,740,171 | |
Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 0.00%, 08/01/38(d) | | | 12,000 | | | | 5,959,440 | |
Palomar Community College District, GO, CAB, Election of 2006, Series B: | | | | | | | | |
0.00%, 08/01/30(d) | | | 2,270 | | | | 1,711,149 | |
0.00%, 08/01/33(d) | | | 4,250 | | | | 1,781,388 | |
6.20%, 08/01/39(c) | | | 4,000 | | | | 4,284,960 | |
San Diego Community College District, GO, CAB, Election of 2002, 6.00%, 08/01/33(c) | | | 4,200 | | | | 5,161,086 | |
State of California, GO, Refunding: | | | | | | | | |
Various Purpose, 5.00%, 02/01/38 | | | 2,000 | | | | 2,200,940 | |
Various Purposes, 4.00%, 10/01/44 | | | 510 | | | | 536,362 | |
State of California, GO, Various Purposes: | | | | | | | | |
6.00%, 03/01/33 | | | 2,270 | | | | 2,354,149 | |
5.50%, 03/01/40 | | | 3,650 | | | | 3,753,623 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| California (continued) | |
Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, SeniorSeries A-1, 5.13%, 06/01/46 | | $ | 495 | | | $ | 495,574 | |
| | | | | | | | |
| | | | | | | 47,252,033 | |
|
| Connecticut — 0.8% | |
Connecticut Housing Finance Authority, Refunding RB, S/F Housing: | | | | | | | | |
Sub-SeriesE-1 (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 05/15/36 | | | 585 | | | | 621,633 | |
Sub-SeriesB-1, 4.00%, 05/15/45 | | | 400 | | | | 416,336 | |
Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F, 5.00%, 07/01/21(b) | | | 950 | | | | 1,015,046 | |
| | | | | | | | |
| | | | | | | 2,053,015 | |
|
| Delaware — 0.7% | |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 | | | 1,800 | | | | 1,897,614 | |
| | | | | | | | |
|
| District of Columbia — 1.0% | |
Metropolitan Washington Airports Authority, Refunding ARB, Dulles Metrorail And Capital Improvement Projects, Series A, 5.00%, 10/01/53 | | | 2,500 | | | | 2,650,775 | |
| | | | | | | | |
|
| Florida — 7.1% | |
County of Miami-Dade Florida, RB: | | | | | | | | |
CAB, Subordinate Special Obligation, 0.00%, 10/01/32(d) | | | 5,000 | | | | 3,239,650 | |
CAB, Subordinate Special Obligation, 0.00%, 10/01/33(d) | | | 15,375 | | | | 9,598,613 | |
Series B, AMT, 6.00%, 10/01/32 | | | 3,000 | | | | 3,425,160 | |
County of Miami-Dade Florida, Refunding ARB, Series A, AMT, 5.00%, 10/01/38 | | | 365 | | | | 410,180 | |
Florida Development Finance Corp., Refunding RB, Virgin Trains USA Passenger Rail Project, Series A, AMT(a)(e): | | | | | | | | |
6.38%, 01/01/49 | | | 540 | | | | 554,180 | |
6.50%, 01/01/49 | | | 760 | | | | 778,673 | |
Greater Orlando Aviation Authority, RB, Priority Subordinated,Sub-Series A, AMT, 5.00%, 10/01/52 | | | 1,130 | | | | 1,291,567 | |
| | | | | | | | |
| | | | | | | 19,298,023 | |
|
| Georgia — 0.2% | |
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/43 | | | 525 | | | | 597,954 | |
| | | | | | | | |
|
| Hawaii — 1.3% | |
State of Hawaii Department of Budget & Finance, Refunding RB: | | | | | | | | |
Hawaiian Electric Co., Inc. AMT, 4.00%, 03/01/37 | | | 2,770 | | | | 2,825,926 | |
Special Purpose, Senior Living, Kahala Nui, 5.25%, 11/15/37 | | | 600 | | | | 658,620 | |
| | | | | | | | |
| | | | | | | 3,484,546 | |
|
| Idaho — 1.2% | |
Idaho Health Facilities Authority, RB, St. Lukes Health System Project, Series A, 5.00%, 03/01/39 | | | 3,000 | | | | 3,255,660 | |
| | | | | | | | |
|
| Illinois — 9.0% | |
Chicago Board of Education, GO: | | | | | | | | |
Project, Series C, 5.25%, 12/01/35 | | | 1,235 | | | | 1,310,224 | |
Series D, 5.00%, 12/01/46 | | | 455 | | | | 476,863 | |
Series D, 5.00%, 12/01/46 | | | 1,180 | | | | 1,213,972 | |
Chicago Board of Education, GO, Refunding Dedicated Revenues: | | | | | | | | |
Series C, 5.00%, 12/01/34 | | | 370 | | | | 397,639 | |
Series C, 5.00%, 12/01/25 | | | 550 | | | | 594,071 | |
Series D, 5.00%, 12/01/26 | | | 675 | | | | 733,482 | |
Series F, 5.00%, 12/01/22 | | | 505 | | | | 535,154 | |
| | |
| 14 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Illinois (continued) | |
Series H, 5.00%, 12/01/36 | | $ | 375 | | | $ | 400,421 | |
Chicago Public Building Commission, RB, Series A (NPFGC), 7.00%, 01/01/20(f) | | | 2,585 | | | | 2,677,078 | |
City of Chicago Illinois, Refunding ARB, O’Hare International Airport Passenger Facility Charge, Series B, AMT, 4.00%, 01/01/29 | | | 2,400 | | | | 2,478,624 | |
City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%, 01/01/41 | | | 1,800 | | | | 1,952,136 | |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 | | | 1,000 | | | | 1,052,660 | |
Illinois Finance Authority, Refunding RB: | | | | | | | | |
OSF Healthcare System, 6.00%, 05/15/39 | | | 155 | | | | 159,121 | |
Roosevelt University Project(b): | | | | | | | | |
6.50%, 10/01/19 | | | 590 | | | | 601,788 | |
6.50%, 10/01/19 | | | 910 | | | | 928,182 | |
Illinois Housing Development Authority, RB, S/F Housing, 4.13%, 10/01/38 | | | 1,040 | | | | 1,109,493 | |
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21(b) | | | 1,700 | | | | 1,850,246 | |
State of Illinois, GO: | | | | | | | | |
5.00%, 02/01/39 | | | 1,000 | | | | 1,038,120 | |
Series A, 5.00%, 04/01/38 | | | 200 | | | | 206,970 | |
Series C, 5.00%, 11/01/29 | | | 2,655 | | | | 2,910,703 | |
Series D, 5.00%, 11/01/28 | | | 1,585 | | | | 1,750,870 | |
| | | | | | | | |
| | | | | | | 24,377,817 | |
|
| Indiana — 0.2% | |
County of Allen Indiana, RB, StoryPoint Fort Wayne Project,Series A-1(a): | | | | | | | | |
6.63%, 01/15/34 | | | 300 | | | | 321,318 | |
6.75%, 01/15/43 | | | 245 | | | | 260,829 | |
| | | | | | | | |
| | | | | | | 582,147 | |
|
| Iowa — 0.8% | |
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project, Series B,
5.25%, 12/01/50(e) | | | 2,050 | | | | 2,196,924 | |
| | | | | | | | |
|
| Kansas — 3.2% | |
City of Lenexa Kansas, Refunding RB, Lakeview Village, Inc., Series A, 5.00%, 05/15/39 | | | 840 | | | | 902,504 | |
County of Seward Kansas Unified School District No. 480 Liberal, GO, Refunding: | | | | | | | | |
5.00%, 09/01/22(b) | | | 4,915 | | | | 5,448,032 | |
5.00%, 09/01/39 | | | 1,085 | | | | 1,201,182 | |
Kansas Development Finance Authority, Refunding RB, Sisters Leavenworth: | | | | | | | | |
5.00%, 01/01/20(b) | | | 1,005 | | | | 1,027,251 | |
5.00%, 01/01/28 | | | 150 | | | | 153,099 | |
| | | | | | | | |
| | | | | | | 8,732,068 | |
|
| Kentucky — 6.7% | |
County of Boyle Kentucky, Refunding RB, Centre College of Kentucky, 5.00%, 06/01/37 | | | 4,000 | | | | 4,482,600 | |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 01/01/40 | | | 3,400 | | | | 3,678,494 | |
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/23(d) | | | 8,500 | | | | 7,582,680 | |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C(c): | | | | | | | | |
6.45%, 07/01/34 | | | 1,000 | | | | 1,023,830 | |
6.60%, 07/01/39 | | | 1,395 | | | | 1,406,341 | |
| | | | | | | | |
| | | | | | | 18,173,945 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Louisiana — 1.6% | |
City of Alexandria Louisiana Utilities, RB, 5.00%, 05/01/39 | | $ | 1,790 | | | $ | 1,999,448 | |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project,Series A-1, 6.50%, 11/01/35 | | | 1,565 | | | | 1,664,002 | |
Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.50%, 05/01/31 | | | 600 | | | | 630,720 | |
| | | | | | | | |
| | | | | | | 4,294,170 | |
|
| Maine — 0.6% | |
Maine State Housing Authority, RB: | | | | | | | | |
S/F Housing, Series C, 3.95%, 11/15/43 | | | 505 | | | | 526,119 | |
M/F Housing, Series E, 4.25%, 11/15/43 | | | 955 | | | | 1,008,767 | |
| | | | | | | | |
| | | | | | | 1,534,886 | |
|
| Maryland — 0.5% | |
County of Anne Arundel Maryland Consolidated, RB, Special Taxing District, Villages at Two Rivers Project: | | | | | | | | |
5.13%, 07/01/36 | | | 260 | | | | 264,282 | |
5.25%, 07/01/44 | | | 260 | | | | 263,981 | |
Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38 | | | 875 | | | | 926,100 | |
| | | | | | | | |
| | | | | | | 1,454,363 | |
|
| Massachusetts — 1.9% | |
Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A: | | | | | | | | |
5.00%, 01/01/47 | | | 1,010 | | | | 1,129,604 | |
5.25%, 01/01/42 | | | 900 | | | | 1,023,732 | |
Massachusetts Development Finance Agency, Refunding RB: | | | | | | | | |
International Charter School, 5.00%, 04/15/40 | | | 600 | | | | 636,318 | |
Suffolk University, 4.00%, 07/01/39 | | | 1,375 | | | | 1,419,412 | |
Massachusetts HFA, RB, M/F Housing, Series A, 3.85%, 06/01/46 | | | 35 | | | | 36,046 | |
Massachusetts Housing Finance Agency, Refunding RB, AMT, Series 182, 3.30%, 12/01/28 | | | 1,000 | | | | 1,019,400 | |
| | | | | | | | |
| | | | | | | 5,264,512 | |
|
| Michigan — 3.2% | |
Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014C-2, AMT, 5.00%, 07/01/44 | | | 360 | | | | 384,970 | |
Michigan Finance Authority, Refunding RB, Henry Ford Health System, 4.00%, 11/15/46 | | | 900 | | | | 936,837 | |
Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32 | | | 4,150 | | | | 4,312,265 | |
Michigan Strategic Fund, RB,I-75 Improvement Project, AMT, 5.00%, 12/31/43 | | | 1,250 | | | | 1,430,925 | |
State of Michigan Housing Development Authority, RB, S/F Housing: | | | | | | | | |
Series A, 4.00%, 06/01/49 | | | 425 | | | | 442,544 | |
Series C, 4.13%, 12/01/38 | | | 1,110 | | | | 1,176,156 | |
| | | | | | | | |
| | | | | | | 8,683,697 | |
|
| Minnesota — 1.7% | |
City of Maple Grove Minnesota, Refunding RB, Maple Grove Hospital, Corp., 4.00%, 05/01/37 | | | 1,405 | | | | 1,471,204 | |
Housing & Redevelopment Authority of The City of Saint Paul Minnesota, RB, Great River School Project, Series A, 5.50%, 07/01/52(a) | | | 305 | | | | 318,515 | |
Minneapolis-St. Paul Metropolitan Airports Commission, Refunding ARB, Sub Series D, AMT, 5.00%, 01/01/41 | | | 460 | | | | 523,866 | |
Minnesota Higher Education Facilities Authority, RB: | | | | | | | | |
Augsburg College, Series B, 4.25%, 05/01/40 | | | 1,740 | | | | 1,740,122 | |
College of St. Benedict, Series8-K, 4.00%, 03/01/43 | | | 615 | | | | 623,960 | |
| | | | | | | | |
| | | | | | | 4,677,667 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 15 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Mississippi — 2.0% | |
County of Warren Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, 5.38%, 12/01/35 | | $ | 600 | | | $ | 647,586 | |
Mississippi Development Bank, RB, Special Obligation(b): | | | | | | | | |
CAB, Hinds Community College District (AGM), 5.00%, 04/01/21 | | | 1,910 | | | | 2,033,386 | |
County of Jackson Limited Tax Note (AGC), 5.50%, 07/01/19 | | | 2,655 | | | | 2,671,939 | |
| | | | | | | | |
| | | | | | | 5,352,911 | |
|
| Missouri — 3.0% | |
Missouri Development Finance Board, RB, Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41 | | | 1,350 | | | | 1,443,123 | |
Missouri State Health & Educational Facilities Authority, RB: | | | | | | | | |
A.T. Still University of Health
Sciences, 5.25%, 10/01/31 | | | 500 | | | | 537,400 | |
Sciences, 4.25%, 10/01/32 | | | 480 | | | | 507,235 | |
Sciences, 5.00%, 10/01/39 | | | 750 | | | | 827,603 | |
Heartland Regional Medical Center, 4.13%, 02/15/43 | | | 700 | | | | 717,570 | |
University of Central Missouri, SeriesC-2, 5.00%, 10/01/34 | | | 1,500 | | | | 1,675,185 | |
Missouri State Health & Educational Facilities Authority, Refunding RB, Kansas City University of Medicine and Biosciences, Series A: | | | | | | | | |
5.00%, 06/01/42 | | | 860 | | | | 980,030 | |
5.00%, 06/01/47 | | | 1,230 | | | | 1,402,680 | |
| | | | | | | | |
| | | | | | | 8,090,826 | |
|
| Nebraska — 1.8% | |
Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.00%, 09/01/42 | | | 900 | | | | 974,745 | |
County of Douglas Nebraska Hospital Authority No. 3, Refunding RB, Health Facilities Nebraska Methodist Health System, 5.00%, 11/01/45 | | | 600 | | | | 653,880 | |
Nebraska Public Power District, Refunding RB, Series A: | | | | | | | | |
5.00%, 01/01/32 | | | 2,535 | | | | 2,729,434 | |
4.00%, 01/01/44 | | | 600 | | | | 612,408 | |
| | | | | | | | |
| | | | | | | 4,970,467 | |
|
| Nevada — 0.6% | |
County of Clark Nevada, Refunding ARB, Department of Aviation, Subordinate Lien,Series A-2, 4.25%, 07/01/36 | | | 1,500 | | | | 1,593,255 | |
Nevada Department of Business & Industry, RB, Series A, 5.00%, 07/15/37(a) | | | 125 | | | | 132,363 | |
| | | | | | | | |
| | | | | | | 1,725,618 | |
|
| New Hampshire — 0.3% | |
New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project(a): | | | | | | | | |
Series B, 4.63%, 11/01/42 | | | 505 | | | | 511,363 | |
Series C, AMT, 4.88%, 11/01/42 | | | 220 | | | | 224,426 | |
| | | | | | | | |
| | | | | | | 735,789 | |
|
| New Jersey — 8.0% | |
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel,Sub-Series B, 6.25%, 01/01/37(g)(h) | | | 1,510 | | | | 15,855 | |
New Jersey EDA, RB: | | | | | | | | |
Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29 | | | 1,335 | | | | 1,456,231 | |
Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30 | | | 990 | | | | 1,126,660 | |
Goethals Bridge Replacement Project (AGM), AMT, 5.13%, 07/01/42 | | | 300 | | | | 329,598 | |
S/F Housing, State House Project, Series B, 4.50%, 06/15/40 | | | 1,930 | | | | 2,014,206 | |
School Facilities Construction Bonds, Series DDD, 5.00%, 06/15/42 | | | 160 | | | | 173,426 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| New Jersey (continued) | |
New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Barnabas Health Care System, Series A: | | | | | | | | |
4.63%, 07/01/21(b) | | $ | 770 | | | $ | 818,310 | |
5.63%, 07/01/21(b) | | | 2,560 | | | | 2,774,809 | |
5.00%, 07/01/25 | | | 500 | | | | 547,470 | |
New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/45 | | | 820 | | | | 919,728 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
CAB, Transportation System, Series A, 0.00%, 12/15/35(d) | | | 1,600 | | | | 847,840 | |
Transportation Program: | | | | | | | | |
Series AA, 5.00%, 06/15/38 | | | 290 | | | | 309,305 | |
Series AA, 5.00%, 06/15/45 | | | 1,350 | | | | 1,444,122 | |
Series AA, 5.00%, 06/15/46 | | | 600 | | | | 641,532 | |
Series A, 5.50%, 06/15/41 | | | 500 | | | | 524,195 | |
Series A, 5.00%, 06/15/42 | | | 395 | | | | 413,194 | |
Transportation System: | | | | | | | | |
Series B, 5.50%, 06/15/31 | | | 2,000 | | | | 2,114,140 | |
New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/36 | | | 240 | | | | 267,612 | |
Tobacco Settlement Financing Corp. New Jersey, Refunding RB,Sub-Series B, 5.00%, 06/01/46 | | | 4,770 | | | | 4,974,919 | |
| | | | | | | | |
| | | | | | | 21,713,152 | |
|
| New Mexico — 0.3% | |
New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%, 08/01/44 | | | 680 | | | | 761,981 | |
| | | | | | | | |
|
| New York — 4.5% | |
City of New York Industrial Development Agency, RB, PILOT: | | | | | | | | |
(AMBAC), 5.00%, 01/01/39 | | | 1,100 | | | | 1,115,279 | |
Queens Baseball Stadium (AGC), 6.50%, 01/01/46 | | | 300 | | | | 301,125 | |
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41(a) | | | 1,400 | | | | 1,434,132 | |
Counties of New York Tobacco Trust VI, Refunding RB, Settlement Pass-Through Turbo, Series C, 4.00%, 06/01/51 | | | 1,000 | | | | 868,220 | |
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45 | | | 1,825 | | | | 1,800,654 | |
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 | | | | 1,289,737 | |
3 World Trade Center Project, Class 2, 5.15%, 11/15/34(a) | | | 640 | | | | 705,440 | |
New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31 | | | 1,905 | | | | 1,997,050 | |
Port Authority of New York & New Jersey, Refunding ARB, AMT: | | | | | | | | |
Consolidated, 186th Series, 5.00%, 10/15/36 | | | 470 | | | | 528,849 | |
Consolidated, 186th Series, 5.00%, 10/15/44 | | | 950 | | | | 1,059,602 | |
Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds,Sub-Series C, 5.13%, 06/01/51 | | | 1,160 | | | | 1,182,620 | |
| | | | | | | | |
| | | | | | | 12,282,708 | |
|
| 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 | | | | 770,098 | |
| | | | | | | | |
|
| Ohio — 3.7% | |
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term,Series A-2: | | | | | | | | |
5.75%, 06/01/34 | | | 415 | | | | 393,196 | |
5.88%, 06/01/47 | | | 2,545 | | | | 2,411,387 | |
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 | | | | 3,087,720 | |
| | |
| 16 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Ohio (continued) | |
County of Butler Port Authority, RB,Series A-1(a): | | | | | | | | |
Storypoint Fairfield Project, 6.25%, 01/15/34 | | $ | 500 | | | $ | 523,560 | |
StoryPoint Fairfield Project, 6.38%, 01/15/43 | | | 275 | | | | 288,159 | |
Ohio Housing Finance Agency, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 09/01/48 | | | 50 | | | | 52,547 | |
State of Ohio, Refunding RB, University Hospitals Health System, Series A, 5.00%, 01/15/41 | | | 3,010 | | | | 3,165,888 | |
| | | | | | | | |
| | | | | | | 9,922,457 | |
|
| Oklahoma — 0.9% | |
City of Oklahoma Turnpike Authority, RB, Series A, 4.00%, 01/01/48 | | | 420 | | | | 444,238 | |
Oklahoma City Public Property Authority, Refunding RB: | | | | | | | | |
5.00%, 10/01/36 | | | 800 | | | | 922,168 | |
5.00%, 10/01/39 | | | 280 | | | | 322,163 | |
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.50%, 08/15/52 | | | 680 | | | | 782,510 | |
| | | | | | | | |
| | | | | | | 2,471,079 | |
|
| Oregon — 1.5% | |
Oregon Health & Science University, RB, Series A, 4.00%, 07/01/37 | | | 575 | | | | 627,647 | |
State of Oregon Housing & Community Services Department, RB, S/F Housing, Mortgage Program, Series C, 3.95%, 07/01/43 | | | 625 | | | | 650,731 | |
State of Oregon State Facilities Authority, Refunding RB, University of Portland Project, Series A, 5.00%, 04/01/45 | | | 2,485 | | | | 2,791,624 | |
| | | | | | | | |
| | | | | | | 4,070,002 | |
|
| Pennsylvania — 10.4% | |
City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB, Series B, AMT, 5.00%, 07/01/35 | | | 575 | | | | 666,368 | |
Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment (AGM), 4.00%, 06/01/39 | | | 2,785 | | | | 2,962,098 | |
County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27 | | | 2,535 | | | | 2,617,742 | |
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49 | | | 565 | | | | 588,645 | |
Delaware River Port Authority, RB: | | | | | | | | |
4.50%, 01/01/32 | | | 3,000 | | | | 3,247,800 | |
Series D (AGM), 5.00%, 01/01/20(b) | | | 1,140 | | | | 1,166,003 | |
Mckeesport Area School District, GO, CAB, Refunding (NPFGC), 0.00%, 10/01/31(d)(f) | | | 500 | | | | 371,835 | |
Pennsylvania Economic Development Financing Authority, RB, Pennsylvania Rapid Bridge Replacement, 5.00%, 12/31/38 | | | 1,610 | | | | 1,775,283 | |
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44 | | | 810 | | | | 851,075 | |
Pennsylvania Housing Finance Agency, RB, S/F Housing: | | | | | | | | |
Series127-B, 3.88%, 10/01/38 | | | 670 | | | | 692,606 | |
Series128-B, 3.85%, 04/01/38 | | | 1,505 | | | | 1,558,879 | |
Pennsylvania Turnpike Commission, RB: | | | | | | | | |
Series C, 5.00%, 12/01/39 | | | 850 | | | | 950,453 | |
Sub-SeriesA-1, 5.00%, 12/01/41 | | | 2,735 | | | | 3,043,891 | |
Pottsville Hospital Authority, Refunding RB, Lehigh Valley Health Network, Series B, 5.00%, 07/01/45 | | | 2,000 | | | | 2,253,680 | |
School District of Philadelphia, Refunding, GOL, Series F, 5.00%, 09/01/37 | | | 800 | | | | 901,392 | |
State Public School Building Authority, Refunding RB, The School District of Philadelphia Project, Series A, 5.00%, 06/01/34 | | | 3,825 | | | | 4,377,827 | |
| | | | | | | | |
| | | | | | | 28,025,577 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Puerto Rico — 3.1% | |
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds: | | | | | | | | |
5.50%, 05/15/39 | | $ | 495 | | | $ | 500,519 | |
5.63%, 05/15/43 | | | 530 | | | | 535,814 | |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Senior Lien, Series A: | | | | | | | | |
5.00%, 07/01/33 | | | 2,145 | | | | 2,110,144 | |
5.13%, 07/01/37 | | | 615 | | | | 605,006 | |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A: | | | | | | | | |
6.00%, 07/01/38 | | | 630 | | | | 630,788 | |
6.00%, 07/01/44 | | | 1,140 | | | | 1,141,425 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured,Series A-1: | | | | | | | | |
4.50%, 07/01/34 | | | 24 | | | | 24,347 | |
4.75%, 07/01/53 | | | 951 | | | | 908,300 | |
5.00%, 07/01/58 | | | 2,081 | | | | 2,050,950 | |
| | | | | | | | |
| | | | | | | 8,507,293 | |
|
| Rhode Island — 3.1% | |
Rhode Island Health & Educational Building Corp., Refunding RB, Series A (AGM), 3.75%, 05/15/32 | | | 1,845 | | | | 1,928,984 | |
Rhode Island Student Loan Authority, Refunding RB, Senior-Series A, AMT, 3.50%, 12/01/34 | | | 585 | | | | 605,370 | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.00%, 06/01/40 | | | 1,000 | | | | 1,060,170 | |
Series B, 4.50%, 06/01/45 | | | 2,725 | | | | 2,678,811 | |
Series B, 5.00%, 06/01/50 | | | 2,000 | | | | 2,051,540 | |
| | | | | | | | |
| | | | | | | 8,324,875 | |
|
| South Carolina — 1.7% | |
South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/38 | | | 1,895 | | | | 2,183,703 | |
State of South Carolina Public Service Authority, RB, Series E, 5.00%, 12/01/48 | | | 2,125 | | | | 2,301,907 | |
| | | | | | | | |
| | | | | | | 4,485,610 | |
|
| Tennessee — 3.9% | |
Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/40 | | | 2,945 | | | | 3,173,532 | |
County of Chattanooga-Hamilton Tennessee Hospital Authority, Refunding RB, Series A, 5.00%, 10/01/44 | | | 875 | | | | 950,469 | |
County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A: | | | | | | | | |
5.25%, 11/01/27 | | | 1,135 | | | | 1,154,806 | |
5.38%, 11/01/28 | | | 1,000 | | | | 1,018,070 | |
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40 | | | 1,075 | | | | 1,205,946 | |
Greeneville Health & Educational Facilities Board, Refunding RB, Ballad Health Obligation Group, Series A, 4.00%, 07/01/40 | | | 600 | | | | 618,534 | |
Johnson City Health & Educational Facilities Board, RB, Mountain States Health, Series A, 5.00%, 08/15/42 | | | 1,200 | | | | 1,267,008 | |
Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/46 | | | 945 | | | | 1,055,366 | |
| | | | | | | | |
| | | | | | | 10,443,731 | |
|
| Texas — 11.1% | |
Central Texas Turnpike System, RB, Series C, 5.00%, 08/15/42 | | | 3,450 | | | | 3,793,586 | |
County of Harris Texas-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC) (AGM), 0.00%, 11/15/38(d) | | | 5,000 | | | | 2,094,300 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 17 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Texas (continued) | |
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co., Project, Series A, 6.30%, 11/01/29 | | $ | 2,200 | | | $ | 2,259,202 | |
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 | | | | 7,582,714 | |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/35 | | | 1,440 | | | | 1,700,151 | |
Leander ISD, GO, Refunding CAB, Series D(PSF-GTD)(d): | | | | | | | | |
0.00%, 08/15/24(b) | | | 550 | | | | 295,757 | |
0.00%, 08/15/35 | | | 5,450 | | | | 2,818,250 | |
North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49 | | | 930 | | | | 992,468 | |
Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38 | | | 1,140 | | | | 1,266,893 | |
Texas Department of Housing & Community Affairs, RB, S/F Housing Mortgage, Series A (Ginnie Mae), 4.25%, 09/01/43 | | | 300 | | | | 317,460 | |
Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements, 5.00%, 12/15/32 | | | 2,080 | | | | 2,246,795 | |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, 7.00%, 06/30/40 | | | 3,000 | | | | 3,170,490 | |
Texas Transportation Commission, RB, First Tier Toll Revenue(d): | | | | | | | | |
0.00%, 08/01/35 | | | 420 | | | | 220,735 | |
0.00%, 08/01/36 | | | 235 | | | | 116,908 | |
0.00%, 08/01/37 | | | 305 | | | | 142,807 | |
0.00%, 08/01/38 | | | 315 | | | | 139,334 | |
0.00%, 08/01/44 | | | 1,370 | | | | 434,824 | |
0.00%, 08/01/45 | | | 1,800 | | | | 542,142 | |
| | | | | | | | |
| | | | | | | 30,134,816 | |
|
| Utah — 0.6% | |
Utah Housing Corp., RB, S/F Housing, Class III ,Series D-2 (FHA), 4.00%, 01/01/36 | | | 490 | | | | 495,473 | |
Utah State Charter School Finance Authority, Refunding RB: | | | | | | | | |
Mountainville Academy, 4.00%, 04/15/42 | | | 600 | | | | 618,012 | |
The Freedom Academy Foundation Project(a): | | | | | | | | |
5.25%, 06/15/37 | | | 205 | | | | 209,471 | |
5.38%, 06/15/48 | | | 260 | | | | 263,825 | |
| | | | | | | | |
| | | | | | | 1,586,781 | |
|
| Vermont — 0.2% | |
Vermont Student Assistance Corp., RB, AMT, Series A, 4.25%, 06/15/32 | | | 600 | | | | 627,234 | |
| | | | | | | | |
|
| Virginia — 1.5% | |
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A, 5.38%, 03/01/36 | | | 780 | | | | 819,842 | |
Tobacco Settlement Financing Corp., Refunding RB, SeniorSeries B-1, 5.00%, 06/01/47 | | | 1,030 | | | | 998,235 | |
Virginia Small Business Financing Authority, RB, AMT: | | | | | | | | |
Covanta Project, 5.00%, 01/01/48(a)(e) | | | 745 | | | | 770,673 | |
Senior Lien, Elizabeth River Crossings OpCo LLC Project, 6.00%, 01/01/37 | | | 1,440 | | | | 1,588,651 | |
| | | | | | | | |
| | | | | | | 4,177,401 | |
|
| Washington — 0.3% | |
Port of Seattle Washington, ARB, Series A, AMT, 5.00%, 05/01/43 | | | 625 | | | | 711,050 | |
| | | | | | | | |
|
| West Virginia — 0.3% | |
West Virginia Hospital Finance Authority, RB, Improvement, West Virginia University Health System Obligated Group, Series A, 4.00%, 06/01/51 | | | 730 | | | | 750,491 | |
| | | | | | | | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Wisconsin — 0.7% | |
Public Finance Authority, Refunding RB, National Gypsum Co., AMT, 4.00%, 08/01/35 | | $ | 435 | | | $ | 440,720 | |
WPPI Energy Power Supply Systems, Refunding RB, Series A, 5.00%, 07/01/37 | | | 1,330 | | | | 1,497,633 | |
| | | | | | | | |
| | | | 1,938,353 | |
| | | | | |
| |
Total Municipal Bonds — 131.5%
(Cost — $325,912,270) | | | | 355,912,726 | |
| | | | | |
|
Municipal Bonds Transferred to Tender Option Bond Trusts(i) | |
|
California — 0.5% | |
Los Angeles California Unified School District, GO, Election of 2008,Series B-1, 5.25%, 07/01/42(j) | | | 1,182 | | | | 1,418,322 | |
| | | | | | | | |
|
| Colorado — 0.8% | |
City & County of Denver Colorado Airport System Revenue, Refunding ARB, Subordinate System, Series A, AMT, 5.25%, 12/01/48(j) | | | 1,769 | | | | 2,094,141 | |
| | | | | | | | |
|
| Connecticut — 1.6% | |
State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45 | | | 3,902 | | | | 4,441,537 | |
| | | | | | | | |
|
| District of Columbia — 0.8% | |
District of Columbia Housing Finance Agency, RB, M/F Housing,Series B-2 (FHA), 4.10%, 09/01/39 | | | 2,102 | | | | 2,192,030 | |
| | | | | | | | |
|
| Florida — 0.9% | |
County of Pinellas Florida School Board, COP, Master Lease Program, Series A, 5.00%, 07/01/41 | | | 2,120 | | | | 2,443,925 | |
| | | | | | | | |
|
| Georgia — 0.6% | |
Georgia Housing & Finance Authority, Refunding RB, S/F Mortgage Bonds, Series A, 3.70%, 06/01/49 | | | 1,581 | | | | 1,615,090 | |
| | | | | | | | |
|
| Louisiana — 0.5% | |
County of St. Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, First Lien, Series A, 4.00%, 05/01/41 | | | 1,200 | | | | 1,264,800 | |
| | | | | | | | |
|
| Maine — 0.4% | |
State of Maine Housing Authority, RB, M/F Housing, Series E, 4.15%, 11/15/38 | | | 1,061 | | | | 1,122,828 | |
| | | | | | | | |
|
| Maryland — 1.2% | |
State of Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/42 | | | 2,760 | | | | 3,219,117 | |
| | | | | | | | |
|
| Massachusetts — 1.3% | |
Commonwealth of Massachusetts, GO, Series A, 5.00%, 01/01/46 | | | 3,018 | | | | 3,536,930 | |
| | | | | | | | |
|
| Michigan — 0.8% | |
State of Michigan Housing Development Authority, RB, M/F Housing, Series A, 4.05%, 10/01/48 | | | 2,142 | | | | 2,224,100 | |
| | | | | | | | |
|
| Minnesota — 2.1% | |
State of Minnesota, RB, Series A, 5.00%, 06/01/38 | | | 5,000 | | | | 5,566,017 | |
| | | | | | | | |
|
| Nebraska — 0.9% | |
Nebraska Investment Finance Authority, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 3.70%, 03/01/47 | | | 2,251 | | | | 2,278,400 | |
| | | | | | | | |
|
| Nevada — 1.0% | |
County of Clark Nevada, GOL, Stadium Improvement, Series A, 5.00%, 06/01/38 | | | 2,311 | | | | 2,753,028 | |
| | | | | | | | |
| | |
| 18 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| New Jersey — 1.7% | |
New Jersey State Turnpike Authority, Refunding RB, Series G, 4.00%, 01/01/43 | | $ | 1,606 | | | $ | 1,714,949 | |
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36(j) | | | 2,861 | | | | 2,984,019 | |
| | | | | | | | |
| | | | | | | 4,698,968 | |
|
| New York — 9.8% | |
City of New York, GO, Refunding Fiscal 2015, Series B, 4.00%, 08/01/32 | | | 1,600 | | | | 1,705,472 | |
City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 11/01/38 | | | 1,650 | | | | 1,744,372 | |
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 | | | | 813,645 | |
City of New York Transitional Finance Authority, BARB,Series S-1, 4.00%, 07/15/42(j) | | | 2,145 | | | | 2,216,529 | |
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2013: | | | | | | | | |
Series BB, 4.00%, 06/15/47 | | | 6,000 | | | | 6,204,460 | |
Series CC, 5.00%, 06/15/47 | | | 4,000 | | | | 4,471,671 | |
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(j): | | | | | | | | |
5.75%, 02/15/21(b) | | | 1,083 | | | | 1,159,388 | |
5.75%, 02/15/47 | | | 666 | | | | 713,220 | |
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43 | | | 4,500 | | | | 4,886,859 | |
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 03/15/31 | | | 2,360 | | | | 2,532,740 | |
| | | | | | | | |
| | | | | | | 26,448,356 | |
|
| Ohio — 0.7% | |
Northeast Ohio Regional Sewer District, Refunding RB, 4.00%, 11/15/49(j) | | | 1,800 | | | | 1,887,690 | |
| | | | | | | | |
|
| Pennsylvania — 1.3% | |
Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/36(j) | | | 2,399 | | | | 2,600,320 | |
Philadelphia Authority for Industrial Development, RB, Childrens Hospital of Philadelphia Project, Series A, 4.00%, 07/01/44 | | | 914 | | | | 956,575 | |
| | | | | | | | |
| | | | | | | 3,556,895 | |
|
| 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 | | | | 1,141,184 | |
| | | | | | | | |
|
| Texas — 4.1% | |
Aldine Independent School District, GO,Refunding(PSF-GTD), 5.00%, 02/15/42 | | | 2,609 | | | | 3,047,498 | |
City of Houston Texas Community College, GO, Limited Tax, 4.00%, 02/15/43 | | | 2,160 | | | | 2,215,613 | |
City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43 | | | 2,380 | | | | 2,612,728 | |
Howe Independent School District, GO, School Building(PSF-GTD), 4.00%, 08/15/43 | | | 1,680 | | | | 1,747,939 | |
San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing And Expansion Project, 4.00%, 09/15/42 | | | 1,409 | | | | 1,453,566 | |
| | | | | | | | |
| | | | 11,077,344 | |
| | | | | | | | |
| 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 | | | $ | 2,323,712 | |
| | | | | | | | |
| |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 32.3%
(Cost — $84,395,561) | | | | 87,304,414 | |
| | | | | |
| |
Total Long-Term Investments — 163.8%
(Cost — $410,307,831) | | | | 443,217,140 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
|
| Short-Term Securities — 0.3% | |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.94%(k)(l) | | | 903,538 | | | | 903,628 | |
| | | | | | | | |
| |
Total Short-Term Securities — 0.3%
(Cost — $903,628) | | | | 903,628 | |
| | | | | |
| |
Total Investments — 164.1%
(Cost — $411,211,459) | | | | 444,120,768 | |
| |
Other Assets Less Liabilities — 1.7% | | | | 4,748,994 | |
| |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (19.3)% | | | | (52,262,952 | ) |
| |
VMTP Shares at Liquidation Value — (46.5)% | | | | (125,900,000 | ) |
| | | | | |
| |
Net Assets Applicable to Common Shares — 100.0% | | | $ | 270,706,810 | |
| | | | | |
| (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. |
| (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) | Security is collateralized by municipal bonds or U.S. Treasury obligations. |
| (g) | Issuer filed for bankruptcy and/or is in default. |
| (h) | Non-income producing 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 the 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 June 15, 2019 to June 1, 2026, is $9,548,900. See Note 4 of the Notes to Financial Statements for details. |
| (k) | Annualized7-day yield as of period end. |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 19 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) |
| (l) | During the year ended April 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliate | | Shares
Held at
04/30/18 | | | Net
Activity | | | Shares
Held at
04/30/19 | | | Value at
04/30/19 | | | Income | | | Net
Realized
Gain (Loss) (a) | | | Change in
Unrealized
Appreciation
(Depreciation) | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | — | | | | 903,538 | | | | 903,538 | | | $ | 903,628 | | | $ | 16,817 | | | $ | 529 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (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 | | | 51 | | | | 06/19/19 | | | $ | 6,307 | | | $ | (31,824 | ) |
Long U.S. Treasury Bond | | | 160 | | | | 06/19/19 | | | | 23,595 | | | | (122,645 | ) |
5-Year U.S. Treasury Note | | | 18 | | | | 06/28/19 | | | | 2,082 | | | | (11,515 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (165,984 | ) |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments Categorized by Risk Exposure
As of year 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 | |
Liabilities — Derivative Financial Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(a) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 165,984 | | | $ | — | | | $ | 165,984 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). | |
For the year ended April 30, 2019, 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 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (839,428 | ) | | $ | — | | | $ | (839,428 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (164,381 | ) | | $ | — | | | $ | (164,381 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | |
Average notional value of contracts — short | | $ | 24,666,658 | |
For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
| | |
| 20 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | 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) | | $ | — | | | $ | 443,217,140 | | | $ | — | | | $ | 443,217,140 | |
Short-Term Securities | | | 903,628 | | | | — | | | | — | | | | 903,628 | |
| | | | | | | | | | | | | | | | |
| | $ | 903,628 | | | $ | 443,217,140 | | | $ | — | | | $ | 444,120,768 | |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments(b) | |
Liabilities: | |
Interest rate contracts | | $ | (165,984 | ) | | $ | — | | | $ | — | | | $ | (165,984 | ) |
| | | | | | | | | | | | | | | | |
| | (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 | | $ | — | | | $ | (51,999,064 | ) | | $ | — | | | $ | (51,999,064 | ) |
VMTP Shares at Liquidation Value | | | — | | | | (125,900,000 | ) | | | — | | | | (125,900,000 | ) |
| | | | | | | | | | | | | | | | |
| | $ | — | | | $ | (177,899,064 | ) | | $ | — | | | $ | (177,899,064 | ) |
| | | | | | | | | | | | | | | | |
See notes to financial statements.
| | | | |
| SCHEDULES OF INVESTMENTS | | | 21 | |
| | |
Schedule of Investments April 30, 2019 | | BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
Municipal Bonds — 129.0% | |
|
Alabama — 1.4% | |
County of Jefferson Alabama Sewer, Refunding RB,Sub-Lien, Series D, 6.00%, 10/01/42 | | $ | 1,655 | | | $ | 1,926,652 | |
County of Tuscaloosa IDA, Refunding RB, Hunt Refining Project, Series A(a)(b): | | | | | | | | |
4.50%, 05/01/32 | | | 180 | | | | 189,671 | |
5.25%, 05/01/44 | | | 230 | | | | 246,390 | |
| | | | | | | | |
| | | | | | | 2,362,713 | |
|
| Alaska — 0.6% | |
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 06/01/46 | | | 1,045 | | | | 1,019,816 | |
| | | | | | | | |
|
| Arizona — 4.2% | |
Arizona IDA, RB: | | | | | | | | |
Doral Academy of Nevada-Fire Mesa, Series A, 5.00%, 07/15/39(b) | | | 250 | | | | 267,323 | |
Great Lakes Senior Living Communities LLC Project Second Tier, Series B, 5.13%, 01/01/54 | | | 280 | | | | 302,196 | |
Great Lakes Senior Living Communities LLC Project, Series A, 4.50%, 01/01/49 | | | 500 | | | | 512,700 | |
Arizona IDA, Refunding RB, Series A(b): | | | | | | | | |
Basis Schools, Inc. Projects, 5.13%, 07/01/37 | | | 360 | | | | 384,296 | |
Basis Schools, Inc. Projects, 5.38%, 07/01/50 | | | 925 | | | | 985,106 | |
Odyssey Preparatory Academy Project, 5.50%, 07/01/52 | | | 725 | | | | 729,683 | |
City of Phoenix Arizona IDA, RB, Series A: | | | | | | | | |
Facility, Eagle College Preparatory Project, 5.00%, 07/01/33 | | | 870 | | | | 890,367 | |
Legacy Traditional Schools Projects, 5.00%, 07/01/46(b) | | | 1,255 | | | | 1,309,392 | |
City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A(b): | | | | | | | | |
5.00%, 07/01/35 | | | 125 | | | | 132,183 | |
5.00%, 07/01/46 | | | 135 | | | | 140,358 | |
County of Maricopa IDA, Refunding RB, Honorhealth, Series A, 4.13%, 09/01/38 | | | 375 | | | | 403,646 | |
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37 | | | 725 | | | | 913,065 | |
| | | | | | | | |
| | | | | | | 6,970,315 | |
|
| California — 9.2% | |
California Health Facilities Financing Authority, RB: | | | | | | | | |
St. Joseph Health System, Series A, 5.75%, 07/01/39 | | | 385 | | | | 387,533 | |
Sutter Health, Series B, 6.00%, 08/15/20(c) | | | 1,040 | | | | 1,099,644 | |
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 07/01/19(c) | | | 680 | | | | 684,869 | |
California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A: | | | | | | | | |
5.25%, 08/15/39 | | | 70 | | | | 78,224 | |
5.25%, 08/15/49 | | | 175 | | | | 193,116 | |
City & County of San Francisco California Redevelopment Agency, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Series D, 0.00%, 08/01/31(b)(d) | | | 1,265 | | | | 713,966 | |
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A: | | | | | | | | |
Senior, 5.00%, 05/15/40 | | | 2,045 | | | | 2,115,062 | |
5.25%, 05/15/39 | | | 270 | | | | 270,370 | |
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38 | | | 165 | | | | 194,825 | |
County of California Tobacco Securitization Agency, Refunding RB, Golden Gate Tobacco Funding Corp., Series A, 5.00%, 06/01/47 | | | 140 | | | | 139,727 | |
County of Los Angeles California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.: | | | | | | | | |
5.70%, 06/01/46 | | | 1,000 | | | | 1,000,400 | |
5.60%, 06/01/36 | | | 2,000 | | | | 2,001,360 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| California (continued) | |
Golden State Tobacco Securitization Corp., Refunding RB,Series A-1, 5.00%, 06/01/47 | | $ | 535 | | | $ | 523,599 | |
San Marcos Unified School District, GO, CAB, SAN, Election of 2010, Series B, 0.00%, 08/01/38(d) | | | 3,725 | | | | 2,041,374 | |
State of California Public Works Board, LRB, Various Capital Projects: | | | | | | | | |
Series I, 5.00%, 11/01/38 | | | 355 | | | | 393,681 | |
Sub-SeriesI-1, 6.38%, 11/01/19(c) | | | 400 | | | | 409,848 | |
Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, SeniorSeries A-1: | | | | | | | | |
5.00%, 06/01/37 | | | 2,150 | | | | 2,162,534 | |
5.13%, 06/01/46 | | | 1,005 | | | | 1,006,166 | |
| | | | | | | | |
| | | | | | | 15,416,298 | |
|
| Colorado — 4.7% | |
Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47(b) | | | 275 | | | | 283,063 | |
Colorado Health Facilities Authority, Refunding RB: | | | | | | | | |
Catholic Health Initiatives, SeriesB-1, 4.00%, 07/01/39 | | | 840 | | | | 857,959 | |
Sisters of Charity of Leavenworth Health System, Series A, 5.00%, 01/01/40 | | | 3,940 | | | | 4,012,181 | |
Denver Convention Center Hotel Authority, Refunding RB, 5.00%, 12/01/40 | | | 1,550 | | | | 1,734,233 | |
Table Mountain Metropolitan District, GO, Series A, 5.25%, 12/01/45 | | | 1,000 | | | | 1,042,620 | |
| | | | | | | | |
| | | | | | | 7,930,056 | |
|
| Connecticut — 0.9% | |
Connecticut Housing Finance Authority, Refunding RB, S/F Housing,Sub-Series B-1, 4.00%, 05/15/45 | | | 515 | | | | 536,033 | |
Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 02/01/30(b) | | | 860 | | | | 949,302 | |
| | | | | | | | |
| | | | | | | 1,485,335 | |
|
| Delaware — 1.9% | |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 | | | 750 | | | | 790,673 | |
State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45 | | | 2,240 | | | | 2,321,894 | |
| | | | | | | | |
| | | | | | | 3,112,567 | |
|
| District of Columbia — 1.4% | |
District of Columbia, Refunding RB, Kipp Charter School, Series A, 6.00%, 07/01/23(c) | | | 260 | | | | 304,980 | |
District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 06/01/41 | | | 750 | | | | 791,940 | |
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A: | | | | | | | | |
5.00%, 10/01/39 | | | 170 | | | | 171,946 | |
5.25%, 10/01/44 | | | 1,000 | | | | 1,011,430 | |
| | | | | | | | |
| | | | | | | 2,280,296 | |
|
| Florida — 6.8% | |
Capital Region Community Development District, Refunding, Special Assessment, Capital Improvement: | | | | | | | | |
Revenue Bond, SeriesA-1, 5.13%, 05/01/39 | | | 210 | | | | 212,262 | |
SeriesA-2, 4.60%, 05/01/31 | | | 515 | | | | 520,212 | |
Capital Trust Agency, Inc., RB, Paragon Academy of Technology and Sunshine, Series A, 5.75%, 06/01/54(b) | | | 450 | | | | 450,999 | |
County of Miami-Dade Florida Water & Sewer System Revenue, RB, Water & Sewer System, 5.00%, 10/01/20(c) | | | 1,950 | | | | 2,042,020 | |
Florida Development Finance Corp., RB, Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 08/01/29(b)(e) | | | 740 | | | | 768,682 | |
| | |
| 22 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Florida (continued) | |
Florida Development Finance Corp., Refunding RB, Virgin Trains USA Passenger Rail Project, Series A, AMT(b)(e): | | | | | | | | |
6.38%, 01/01/49 | | $ | 395 | | | $ | 405,373 | |
6.50%, 01/01/49 | | | 750 | | | | 768,427 | |
Lakewood Ranch Stewardship District, Special Assessment Bonds, Northeast Sector Project - Phase 1B(b): | | | | | | | | |
5.30%, 05/01/39 | | | 310 | | | | 323,194 | |
4.75%, 05/01/29 | | | 270 | | | | 280,090 | |
5.45%, 05/01/48 | | | 550 | | | | 579,238 | |
Lakewood Ranch Stewardship District Special Assessment Bonds, Village of Lakewood Ranch Sector Projects: | | | | | | | | |
4.00%, 05/01/21 | | | 100 | | | | 100,709 | |
4.25%, 05/01/26 | | | 100 | | | | 101,689 | |
5.13%, 05/01/46 | | | 385 | | | | 394,540 | |
Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(c) | | | 1,080 | | | | 1,219,504 | |
Tolomato Community Development District, Refunding, Special Assessment Bonds: | | | | | | | | |
Convertible CAB, Series A3, 6.61%, 05/01/40 | | | 225 | | | | 225,103 | |
Convertible CAB, Series A4, 6.61%, 05/01/40(f) | | | 120 | | | | 100,106 | |
Series2015-2, 6.61%, 05/01/40(f) | | | 310 | | | | 208,909 | |
Tolomato Community Development District(g)(h): | | | | | | | | |
Series 1, 6.61%, 05/01/40(f) | | | 505 | | | | 414,438 | |
Series 1, 6.65%, 05/01/40 | | | 15 | | | | 15,015 | |
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 | | | | 594,385 | |
5.00%, 05/01/28 | | | 160 | | | | 164,709 | |
Village Community Development District No.10, Special Assessment Bonds, 5.13%, 05/01/43 | | | 785 | | | | 847,455 | |
West Villages Improvement District, Special Assessment Bonds: | | | | | | | | |
4.75%, 05/01/39 | | | 220 | | | | 219,437 | |
5.00%, 05/01/50 | | | 450 | | | | 451,053 | |
| | | | | | | | |
| | | | | | | 11,407,555 | |
|
| Georgia — 1.1% | |
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54 | | | 240 | | | | 276,835 | |
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49 | | | 1,270 | | | | 1,588,872 | |
| | | | | | | | |
| | | | | | | 1,865,707 | |
|
| Guam — 0.0% | |
Territory of Guam, GO, Series A, 6.00%, 11/15/19 | | | 45 | | | | 45,923 | |
| | | | | | | | |
|
| Illinois — 11.2% | |
Chicago Board of Education, GO, Dedicated Revenues: | | | | | | | | |
Series H, 5.00%, 12/01/36 | | | 935 | | | | 998,384 | |
Project, Series C, 5.25%, 12/01/35 | | | 795 | | | | 843,423 | |
Chicago Board of Education, GO, Refunding, Dedicated Revenues: | | | | | | | | |
Series C, 5.00%, 12/01/25 | | | 350 | | | | 378,046 | |
Series C, 5.00%, 12/01/27 | | | 415 | | | | 452,474 | |
Series C, 5.00%, 12/01/34 | | | 940 | | | | 1,010,218 | |
Series F, 5.00%, 12/01/22 | | | 325 | | | | 344,406 | |
Chicago Board of Education, GO, Series D: | | | | | | | | |
5.00%, 12/01/46 | | | 290 | | | | 303,935 | |
5.00%, 12/01/46 | | | 745 | | | | 766,449 | |
City of Chicago Illinois, GO, Refunding, Series A: | | | | | | | | |
6.00%, 01/01/38 | | | 595 | | | | 678,026 | |
5.00%, 01/01/44 | | | 115 | | | | 121,959 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Illinois (continued) | |
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series A: | | | | | | | | |
5.75%, 01/01/21(c) | | $ | 2,100 | | | $ | 2,243,913 | |
5.75%, 01/01/39 | | | 400 | | | | 424,376 | |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 | | | 360 | | | | 378,958 | |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38 | | | 350 | | | | 368,767 | |
Illinois Finance Authority, Refunding RB: | | | | | | | | |
Central Dupage Health, Series B, 5.50%, 11/01/19(c) | | | 550 | | | | 560,527 | |
Presence Health Network, Series C, 5.00%, 02/15/41 | | | 1,500 | | | | 1,710,900 | |
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.50%, 06/15/53 | | | 200 | | | | 217,632 | |
Metropolitan Pier & Exposition Authority, Refunding RB: | | | | | | | | |
McCormick Place Expansion Project, Series B (AGM), 5.00%, 06/15/50 | | | 1,790 | | | | 1,834,141 | |
McCormick Place Expansion Project, SeriesB-2, 5.00%, 06/15/50 | | | 1,400 | | | | 1,415,806 | |
McCormik Place Expansion Project, Series B, 5.00%, 06/15/52 | | | 225 | | | | 238,599 | |
State of Illinois, GO: | | | | | | | | |
5.00%, 05/01/27 | | | 500 | | | | 535,145 | |
5.00%, 01/01/28 | | | 1,005 | | | | 1,093,731 | |
5.00%, 03/01/37 | | | 755 | | | | 776,283 | |
Series A, 5.00%, 01/01/33 | | | 555 | | | | 572,371 | |
University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44 | | | 475 | | | | 519,479 | |
| | | | | | | | |
| | | | | | | 18,787,948 | |
|
| Indiana — 5.9% | |
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT: | | | | | | | | |
6.75%, 01/01/34 | | | 365 | | | | 421,104 | |
7.00%, 01/01/44 | | | 885 | | | | 1,029,043 | |
City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village Project, 6.25%, 01/01/29(b) | | | 1,025 | | | | 1,046,361 | |
County of Allen Indiana, RB, StoryPoint Fort Wayne Project,Series A-1(b): | | | | | | | | |
6.63%, 01/15/34 | | | 135 | | | | 144,593 | |
6.75%, 01/15/43 | | | 200 | | | | 212,922 | |
6.88%, 01/15/52 | | | 560 | | | | 597,268 | |
Indiana Finance Authority, RB, Series A: | | | | | | | | |
CWA Authority Project, 1st Lien, 5.25%, 10/01/38 | | | 1,285 | | | | 1,378,921 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44 | | | 160 | | | | 172,581 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48 | | | 520 | | | | 559,702 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51 | | | 2,190 | | | | 2,377,332 | |
Sisters of St. Francis Health Services, 5.25%, 11/01/19(c) | | | 290 | | | | 295,191 | |
Indiana Finance Authority, Refunding RB, Parkview Health System, Series A: | | | | | | | | |
5.75%, 05/01/19(c) | | | 500 | | | | 500,000 | |
5.75%, 05/01/31 | | | 100 | | | | 100,000 | |
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40 | | | 445 | | | | 492,103 | |
Town of Chesterton Indiana, RB, StoryPoint Chesterton Project,Series A-1, 6.38%, 01/15/51(b) | | | 560 | | | | 581,123 | |
| | | | | | | | |
| | | | | | | 9,908,244 | |
|
| Iowa — 1.1% | |
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project: | | | | | | | | |
Series B, 5.25%, 12/01/50(e) | | | 825 | | | | 884,128 | |
Midwestern Disaster Area, 5.25%, 12/01/25 | | | 660 | | | | 711,078 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 23 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Iowa (continued) | |
Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, SeniorSeries A-1, AMT, 5.15%, 12/01/22 | | $ | 215 | | | $ | 223,290 | |
| | | | | | | | |
| | | | | | | 1,818,496 | |
|
| Kentucky — 0.6% | |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45 | | | 460 | | | | 494,458 | |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43(f) | | | 565 | | | | 569,735 | |
| | | | | | | | |
| | | | | | | 1,064,193 | |
|
| 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 | | | | 1,206,800 | |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A: | | | | | | | | |
5.50%, 05/15/30 | | | 350 | | | | 361,253 | |
5.25%, 05/15/31 | | | 300 | | | | 316,152 | |
5.25%, 05/15/32 | | | 380 | | | | 408,983 | |
5.25%, 05/15/33 | | | 415 | | | | 445,017 | |
5.25%, 05/15/35 | | | 945 | | | | 1,027,498 | |
| | | | | | | | |
| | | | | | | 3,765,703 | |
|
| Maine — 0.6% | |
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 07/01/41 | | | 970 | | | | 1,047,910 | |
| | | | | | | | |
|
| Maryland — 1.0% | |
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 06/01/20(c) | | | 970 | | | | 1,012,835 | |
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25 | | | 645 | | | | 663,499 | |
| | | | | | | | |
| | | | | | | 1,676,334 | |
|
| Massachusetts — 3.3% | |
Massachusetts Development Finance Agency, RB: | | | | | | | | |
Emerson College Issue, Series A, 5.00%, 01/01/47 | | | 860 | | | | 961,841 | |
Boston Medical Center, Series D, 5.00%, 07/01/44 | | | 1,000 | | | | 1,091,910 | |
North Hill Communities Issue, Series A, 6.50%, 11/15/23(b)(c) | | | 1,000 | | | | 1,196,600 | |
UMass Boston Student Housing Project, 5.00%, 10/01/48 | | | 945 | | | | 1,022,698 | |
Massachusetts Development Finance Agency, Refunding RB, Emmanuel College Issue, Series A, 5.00%, 10/01/35 | | | 500 | | | | 562,170 | |
Massachusetts HFA, Refunding RB, Series A, AMT, 4.45%, 12/01/42 | | | 645 | | | | 669,826 | |
| | | | | | | | |
| | | | | | | 5,505,045 | |
|
| Michigan — 2.3% | |
City of Detroit Michigan, GO: | | | | | | | | |
5.00%, 04/01/34 | | | 140 | | | | 151,192 | |
5.00%, 04/01/35 | | | 140 | | | | 150,762 | |
5.00%, 04/01/36 | | | 95 | | | | 101,981 | |
5.00%, 04/01/37 | | | 155 | | | | 165,681 | |
5.00%, 04/01/38 | | | 70 | | | | 74,728 | |
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39 | | | 1,970 | | | | 2,133,096 | |
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien,Series C-1, 5.00%, 07/01/44 | | | 410 | | | | 438,565 | |
Michigan Strategic Fund, RB,I-75 Improvement Projects, AMT, 5.00%, 06/30/48 | | | 500 | | | | 570,125 | |
| | | | | | | | |
| | | | | | | 3,786,130 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Minnesota — 2.2% | |
City of Brooklyn Park Minnesota, RB, Athlos Leadership Academy Project, Series A, 5.75%, 07/01/46 | | $ | 180 | | | $ | 187,263 | |
Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A: | | | | | | | | |
4.25%, 02/15/48 | | | 1,940 | | | | 2,046,448 | |
5.25%, 02/15/58 | | | 655 | | | | 746,235 | |
Housing & Redevelopment Authority of The City of State Paul Minnesota, Refunding RB, Hmong College Academy Project, Series A, 5.50%, 09/01/36 | | | 690 | | | | 747,863 | |
| | | | | | | | |
| | | | | | | 3,727,809 | |
|
| 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 | | | | 93,237 | |
City of St. Louis Missouri IDA, Refunding RB, BallPark Village Development Project, Series A: | | | | | | | | |
4.38%, 11/15/35 | | | 330 | | | | 340,144 | |
4.75%, 11/15/47 | | | 365 | | | | 377,133 | |
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43 | | | 115 | | | | 123,790 | |
| | | | | | | | |
| | | | | | | 934,304 | |
|
| Nebraska — 0.2% | |
Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.25%, 09/01/37 | | | 285 | | | | 310,841 | |
| | | | | | | | |
|
| New Jersey — 9.8% | |
Casino Reinvestment Development Authority, Refunding RB: | | | | | | | | |
5.25%, 11/01/39 | | | 475 | | | | 511,319 | |
5.25%, 11/01/44 | | | 1,160 | | | | 1,246,907 | |
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(b) | | | 505 | | | | 508,363 | |
New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23 | | | 1,410 | | | | 1,518,556 | |
New Jersey EDA, Refunding RB, Series BBB, 5.50%, 06/15/31 | | | 1,225 | | | | 1,407,047 | |
New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31 | | | 785 | | | | 875,848 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
Transportation Program Bonds, Series S, 5.25%, 06/15/43 | | | 2,535 | | | | 2,850,912 | |
Transportation Program, Series AA, 5.00%, 06/15/45 | | | 585 | | | | 625,786 | |
Transportation System, Series B, 5.25%, 06/15/36 | | | 845 | | | | 881,774 | |
New Jersey Turnpike Authority, RB, Series A, 4.00%, 01/01/48 | | | 245 | | | | 262,307 | |
Tobacco Settlement Financing Corp., Refunding RB, Series A: | | | | | | | | |
5.00%, 06/01/35 | | | 730 | | | | 837,653 | |
5.00%, 06/01/46 | | | 1,700 | | | | 1,855,380 | |
Tobacco Settlement Financing Corp. New Jersey, Refunding RB,Sub-Series B, 5.00%, 06/01/46 | | | 2,825 | | | | 2,946,362 | |
| | | | | | | | |
| | | | | | | 16,328,214 | |
|
| New York — 20.3% | |
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series HH, 5.00%, 06/15/31 | | | 2,830 | | | | 3,027,279 | |
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A: | | | | | | | | |
6.25%, 06/01/41(b) | | | 900 | | | | 921,942 | |
5.00%, 06/01/42 | | | 1,505 | | | | 1,470,686 | |
5.00%, 06/01/45 | | | 555 | | | | 538,611 | |
Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through,Series A-2B, 5.00%, 06/01/51 | | | 1,000 | | | | 1,019,060 | |
County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility,Series A-1, 5.00%, 08/01/46 | | | 730 | | | | 730,029 | |
| | |
| 24 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| New York (continued) | |
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45 | | $ | 910 | | | $ | 897,861 | |
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012: | | | | | | | | |
5.75%, 02/15/21(c) | | | 4,030 | | | | 4,328,421 | |
5.75%, 02/15/47 | | | 2,480 | | | | 2,647,772 | |
Metropolitan Transportation Authority, RB, Series B: | | | | | | | | |
5.25%, 11/15/38 | | | 1,125 | | | | 1,275,694 | |
5.25%, 11/15/39 | | | 400 | | | | 454,328 | |
New York Liberty Development Corp., RB, World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 | | | 6,140 | | | | 6,677,434 | |
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 | | | | 433,352 | |
3 World Trade Center Project, Class 1, 5.00%, 11/15/44(b) | | | 2,355 | | | | 2,533,815 | |
3 World Trade Center Project, Class 2, 5.15%, 11/15/34(b) | | | 160 | | | | 176,360 | |
3 World Trade Center Project, Class 2, 5.38%, 11/15/40(b) | | | 395 | | | | 433,805 | |
4 World Trade Center Project, 5.75%, 11/15/51 | | | 2,220 | | | | 2,433,364 | |
New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 01/01/50 | | | 1,000 | | | | 1,091,990 | |
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/42 | | | 730 | | | | 772,574 | |
State of New York Dormitory Authority, Refunding RB, Orange Regional Medical Center, 5.00%, 12/01/33(b) | | | 410 | | | | 469,618 | |
Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds,Sub-Series C, 4.00%, 06/01/42 | | | 1,700 | | | | 1,637,831 | |
| | | | | | | | |
| | | | | | | 33,971,826 | |
|
| North Carolina — 0.2% | |
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21(c) | | | 260 | | | | 287,674 | |
| | | | | | | | |
|
| Ohio — 4.3% | |
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term,Series A-2: | | | | | | | | |
5.75%, 06/01/34 | | | 2,295 | | | | 2,174,421 | |
5.88%, 06/01/47 | | | 1,100 | | | | 1,042,250 | |
County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 06/01/20(c) | | | 2,650 | | | | 2,749,984 | |
State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53 | | | 1,220 | | | | 1,304,278 | |
| | | | | | | | |
| | | | | | | 7,270,933 | |
|
| Oklahoma — 2.5% | |
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B: | | | | | | | | |
5.00%, 08/15/38 | | | 1,450 | | | | 1,630,800 | |
5.25%, 08/15/43 | | | 1,305 | | | | 1,485,821 | |
Tulsa County Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/45 | | | 925 | | | | 1,027,823 | |
| | | | | | | | |
| | | | | | | 4,144,444 | |
|
| Oregon — 0.2% | |
County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38(d) | | | 625 | | | | 297,469 | |
| | | | | | | | |
|
| Pennsylvania — 2.3% | |
Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project, 5.00%, 05/01/42(b) | | | 470 | | | | 506,566 | |
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42 | | | 300 | | | | 322,653 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Pennsylvania (continued) | |
Pennsylvania Economic Development Financing Authority, RB, Pennsylvania Rapid Bridge Replacement, 5.00%, 12/31/38 | | $ | 465 | | | $ | 512,737 | |
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44 | | | 720 | | | | 756,511 | |
Pennsylvania Housing Finance Agency, RB, S/F Housing Mortgage,Series 123-B, 4.00%, 10/01/42 | | | 1,190 | | | | 1,228,390 | |
Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44 | | | 520 | | | | 579,264 | |
| | | | | | | | |
| | | | | | | 3,906,121 | |
|
| Puerto Rico — 3.6% | |
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43 | | | 820 | | | | 828,995 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 5.25%, 07/01/42 | | | 2,250 | | | | 2,235,938 | |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A: | | | | | | | | |
6.00%, 07/01/38 | | | 395 | | | | 395,494 | |
6.00%, 07/01/44 | | | 715 | | | | 715,894 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured,Series A-1: | | | | | | | | |
4.50%, 07/01/34 | | | 15 | | | | 15,217 | |
4.75%, 07/01/53 | | | 593 | | | | 566,374 | |
5.00%, 07/01/58 | | | 1,299 | | | | 1,280,242 | |
| | | | | | | | |
| | | | | | | 6,038,154 | |
|
| Rhode Island — 2.6% | |
Rhode Island Student Loan Authority, Refunding RB, Senior-Series A, AMT, 3.50%, 12/01/34 | | | 645 | | | | 667,459 | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.00%, 06/01/40 | | | 420 | | | | 445,271 | |
Series B, 4.50%, 06/01/45 | | | 1,875 | | | | 1,843,219 | |
Series B, 5.00%, 06/01/50 | | | 1,360 | | | | 1,395,047 | |
| | | | | | | | |
| | | | | | | 4,350,996 | |
|
| South Carolina — 3.0% | |
State of South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/43 | | | 1,110 | | | | 1,264,479 | |
State of South Carolina Public Service Authority, RB: | | | | | | | | |
Santee Cooper, Series A, 5.50%, 12/01/54 | | | 1,840 | | | | 2,043,283 | |
Series E, 5.00%, 12/01/48 | | | 420 | | | | 454,965 | |
Series E, 5.50%, 12/01/53 | | | 750 | | | | 825,240 | |
State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55 | | | 430 | | | | 482,757 | |
| | | | | | | | |
| | | | | | | 5,070,724 | |
|
| Tennessee — 1.8% | |
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 | | | | 526,603 | |
5.63%, 01/01/46 | | | 570 | | | | 607,757 | |
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A: | | | | | | | | |
4.00%, 10/01/49 | | | 290 | | | | 298,410 | |
5.25%, 10/01/58 | | | 1,430 | | | | 1,644,886 | |
| | | | | | | | |
| | | | | | | 3,077,656 | |
|
| Texas — 7.5% | |
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.25%, 01/01/21(c) | | | 730 | | | | 783,494 | |
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 01/01/23(c) | | | 210 | | | | 249,367 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 25 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Texas (continued) | |
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co., Project, Series A, 6.30%, 11/01/29 | | $ | 700 | | | $ | 718,837 | |
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 0.00%, 09/15/37(d) | | | 5,200 | | | | 2,484,352 | |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare(c): | | | | | | | | |
6.00%, 08/15/20 | | | 105 | | | | 110,772 | |
6.00%, 08/15/20 | | | 1,285 | | | | 1,355,636 | |
Harris County-Houston Sports Authority, Refunding RB, CAB, Series A (AGM) (NPFGC), 0.00%, 11/15/34(d) | | | 3,000 | | | | 1,621,980 | |
Mission EDC, Refunding RB, Senior Lien, NatGasoline Project, AMT, 4.63%, 10/01/31(b) | | | 430 | | | | 448,202 | |
Newark Higher Education Finance Corp., RB, Series A(b): | | | | | | | | |
5.50%, 08/15/35 | | | 135 | | | | 143,373 | |
5.75%, 08/15/45 | | | 275 | | | | 293,153 | |
North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49 | | | 1,890 | | | | 2,016,951 | |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien: | | | | | | | | |
Blueridge Transportation Group, AMT, 5.00%, 12/31/55 | | | 1,025 | | | | 1,113,037 | |
LBJ Infrastructure Group LLC, 7.00%, 06/30/40 | | | 500 | | | | 528,415 | |
Texas Transportation Commission, RB, First Tier Toll Revenue, 0.00%, 08/01/43(d) | | | 2,205 | | | | 739,028 | |
| | | | | | | | |
| | | | | | | 12,606,597 | |
|
| Utah — 1.1% | |
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19(c) | | | 1,815 | | | | 1,832,751 | |
| | | | | | | | |
|
| Virginia — 3.5% | |
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A: | | | | | | | | |
5.00%, 03/01/26 | | | 260 | | | | 269,303 | |
5.13%, 03/01/31 | | | 510 | | | | 534,582 | |
Norfolk Redevelopment & Housing Authority, RB, Fort Norfolk Retirement Community, Inc. - Harbor’s Edge Project, Series A: | | | | | | | | |
5.00%, 01/01/34 | | | 235 | | | | 253,976 | |
4.38%, 01/01/39 | | | 345 | | | | 357,448 | |
5.00%, 01/01/49 | | | 455 | | | | 476,467 | |
Tobacco Settlement Financing Corp., Refunding RB, SeniorSeries B-1, 5.00%, 06/01/47 | | | 1,025 | | | | 993,389 | |
Virginia College Building Authority, RB, Green Bond, Marymount University Project, Series B, 5.00%, 07/01/45(b) | | | 240 | | | | 250,716 | |
Virginia HDA, RB, Rental Housing, Series F, 5.00%, 04/01/45 | | | 1,000 | | | | 1,011,720 | |
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 01/01/37 | | | 1,540 | | | | 1,698,974 | |
| | | | | | | | |
| | | | | | | 5,846,575 | |
|
| Washington — 0.9% | |
Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40 | | | 350 | | | | 386,673 | |
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45 | | | 1,020 | | | | 1,123,999 | |
| | | | | | | | |
| | | | | | | 1,510,672 | |
|
| Wisconsin — 1.9% | |
Public Finance Authority, RB: | | | | | | | | |
Alabama Proton Therapy Center, Series A, 6.25%, 10/01/31(b) | | | 290 | | | | 311,561 | |
Alabama Proton Therapy Center, Series A, 7.00%, 10/01/47(b) | | | 290 | | | | 314,444 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Wisconsin (continued) | |
Minnesota College of Osteopathic Medicine, SeriesA-1, 5.50%, 12/01/48(b) | | $ | 315 | | | $ | 334,996 | |
Series A, 5.00%, 12/01/45 | | | 825 | | | | 860,170 | |
Series A, 5.15%, 12/01/50 | | | 385 | | | | 403,569 | |
Public Finance Authority, Refunding RB: | | | | | | | | |
Celanese Project, Series D, 4.05%, 11/01/30 | | | 200 | | | | 204,404 | |
Wingate University, Series A, 5.25%, 10/01/48 | | | 695 | | | | 776,058 | |
| | | | | | | | |
| | | | | | | 3,205,202 | |
| | | | | | | | |
| |
Total Municipal Bonds — 129.0%
(Cost — $203,685,464) | | | | 215,975,546 | |
| | | | | | | | |
|
Municipal Bonds Transferred to Tender Option Bond Trusts(i) | |
|
| California — 2.5% | |
City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, Series B, AMT, 5.00%, 05/15/46 | | | 2,700 | | | | 3,061,571 | |
Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47 | | | 495 | | | | 572,239 | |
San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(c) | | | 554 | | | | 558,756 | |
| | | | | | | | |
| | | | | | | 4,192,566 | |
|
| Colorado — 0.4% | |
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 07/01/34(j) | | | 740 | | | | 743,367 | |
| | | | | | | | |
|
| Georgia — 0.7% | |
County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48 | | | 1,025 | | | | 1,085,404 | |
| | | | | | | | |
|
| Idaho — 1.4% | |
Idaho State Building Authority, RB, State Office Campus Project, Series A, 4.00%, 09/01/48 | | | 2,120 | | | | 2,257,598 | |
| | | | | | | | |
|
| Illinois — 2.5% | |
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 08/15/41 | | | 2,340 | | | | 2,529,610 | |
State of Illinois Toll Highway Authority, RB, Series C, 5.00%, 01/01/38 | | | 1,498 | | | | 1,683,243 | |
| | | | | | | | |
| | | | | | | 4,212,853 | |
|
| Iowa — 1.1% | |
Iowa Finance Authority, Refunding RB, UnityPoint Health, Series E, 4.00%, 08/15/46 | | | 1,815 | | | | 1,876,317 | |
| | | | | | | | |
|
| Massachusetts — 5.9% | |
Massachusetts Housing Finance Agency, Refunding RB, Series A, AMT, 4.50%, 12/01/47 | | | 2,130 | | | | 2,215,647 | |
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41 | | | 7,112 | | | | 7,586,166 | |
| | | | | | | | |
| | | | | | | 9,801,813 | |
|
| New York — 2.6% | |
City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 11/01/38 | | | 2,390 | | | | 2,526,696 | |
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 | | | | 497,227 | |
Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55 | | | 1,215 | | | | 1,405,974 | |
| | | | | | | | |
| | | | | | | 4,429,897 | |
| | |
| 26 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| North Carolina — 1.6% | |
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55 | | $ | 1,180 | | | $ | 1,340,793 | |
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 | | | | 1,276,571 | |
| | | | | | | | |
| | | | | | | 2,617,364 | |
|
| Pennsylvania — 1.2% | |
Pennsylvania Turnpike Commission, RB,Sub-Series A, 5.50%, 12/01/42 | | | 1,680 | | | | 1,972,432 | |
| | | | | | | | |
|
| Rhode Island — 1.5% | |
Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 09/15/47 | | | 2,447 | | | | 2,575,093 | |
| | | | | | | | |
|
| Texas — 9.2% | |
City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43 | | | 11,000 | | | | 12,075,635 | |
County of Harris Texas, RB, Toll Road, Senior Lien, Series A(j): | | | | | | | | |
5.00%, 08/15/19(c) | | | 1,202 | | | | 1,212,128 | |
5.00%, 08/15/38 | | | 920 | | | | 927,173 | |
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41 | | | 1,170 | | | | 1,250,859 | |
| | | | | | | | |
| | | | 15,465,795 | |
|
| Virginia — 3.4% | |
Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A, 5.50%, 07/01/57(j) | | | 2,224 | | | | 2,688,379 | |
Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40 | | | 2,949 | | | | 3,039,439 | |
| | | | | | | | |
| | | | 5,727,818 | |
|
| West Virginia — 1.2% | |
Morgantown Utility Board, Inc., RB, Series B, 4.00%, 12/01/48(j) | | | 1,891 | | | | 1,991,739 | |
| | | | | | | | |
| |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 35.2%
(Cost — $56,344,152) | | | | 58,950,056 | |
| | | | | |
| |
Total Long-Term Investments — 164.2%
(Cost — $260,029,616) | | | | 274,925,602 | |
| | | | | |
| | | | | | | | |
| Security | |
Shares | | | Value | |
|
| Short-Term Securities — 0.2% | |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.94%(k)(l) | | | 393,555 | | | $ | 393,594 | |
| | | | | |
| |
Total Short-Term Securities — 0.2%
(Cost — $393,594) | | | | 393,594 | |
| | | | | |
| |
Total Investments — 164.4%
(Cost — $260,423,210) | | | | 275,319,196 | |
| |
Other Assets Less Liabilities — 1.5% | | | | 2,441,867 | |
| |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (20.7)% | | | | (34,733,180 | ) |
| |
VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (45.2)% | | | | (75,596,766 | ) |
| | | | | |
| |
Net Assets Applicable to Common Shares — 100.0% | | | $ | 167,431,117 | |
| | | | | |
| (a) | When-issued security. |
| (b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (c) | 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. |
| (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) | 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. |
| (g) | Issuer filed for bankruptcy and/or is in default. |
| (h) | Non-income producing 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 the 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 January 1, 2026 to July 1, 2034, is $4,592,160. See Note 4 of the Notes to Financial Statements for details. |
| (k) | Annualized7-day yield as of period end. |
| (l) | During the year ended April 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliate | |
| Shares
Held at
04/30/18 |
| |
| Net
Activity |
| |
| Shares
Held at
04/30/19 |
| |
| Value at
04/30/19 |
| | | Income | | |
| Net
Realized
Gain (Loss) |
(a) | |
| Change in
Unrealized
Appreciation
(Depreciation) |
|
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | 2,374,394 | | | | (1,980,839 | ) | | | 393,555 | | | $ | 393,594 | | | $ | 9,088 | | | $ | 384 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes net capital gain distributions, if applicable. | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 27 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Long-Term Municipal Advantage Trust (BTA) |
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 | | | 21 | | | | 06/19/19 | | | $ | 2,597 | | | $ | (10,057 | ) |
Long U.S. Treasury Bond | | | 77 | | | | 06/19/19 | | | | 11,355 | | | | (46,050 | ) |
5-Year U.S. Treasury Note | | | 6 | | | | 06/28/19 | | | | 694 | | | | (4,415 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (60,522 | ) |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments Categorized by Risk Exposure
As of year 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 | |
Liabilities — Derivative Financial Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(a) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 60,522 | | | $ | — | | | $ | 60,522 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). | |
For the year ended April 30, 2019, 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 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (381,449 | ) | | $ | — | | | $ | (381,449 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (80,389 | ) | | $ | — | | | $ | (80,389 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | |
Average notional value of contracts — short | | $ | 11,326,955 | |
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) | | $ | — | | | $ | 274,925,602 | | | $ | — | | | $ | 274,925,602 | |
Short-Term Securities | | | 393,594 | | | | — | | | | — | | | | 393,594 | |
| | | | | | | | | | | | | | | | |
| | $ | 393,594 | | | $ | 274,925,602 | | | $ | — | | | $ | 275,319,196 | |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments(b) | |
Liabilities: | |
Interest rate contracts | | $ | (60,522 | ) | | $ | — | | | $ | — | | | $ | (60,522 | ) |
| | | | | | | | | | | | | | | | |
| | (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. | |
| | |
| 28 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Long-Term Municipal Advantage Trust (BTA) |
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 | | $ | — | | | $ | (34,594,635 | ) | | $ | — | | | $ | (34,594,635 | ) |
VRDP Shares at Liquidation Value | | | — | | | | (76,000,000 | ) | | | — | | | | (76,000,000 | ) |
| | | | | | | | | | | | | | | | |
| | $ | — | | | $ | (110,594,635 | ) | | $ | — | | | $ | (110,594,635 | ) |
| | | | | | | | | | | | | | | | |
See notes to financial statements.
| | | | |
| SCHEDULES OF INVESTMENTS | | | 29 | |
| | |
Schedule of Investments April 30, 2019 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
Municipal Bonds — 125.2% | |
|
Alabama — 3.2% | |
County of Jefferson Alabama Sewer, Refunding RB: | | | | | | | | |
Senior Lien, Series A (AGM), 5.00%, 10/01/44 | | $ | 1,555 | | | $ | 1,712,693 | |
Senior Lien, Series A (AGM), 5.25%, 10/01/48 | | | 2,275 | | | | 2,528,344 | |
Sub-Lien, Series D, 6.00%, 10/01/42 | | | 5,740 | | | | 6,682,164 | |
Sub-Lien, Series D, 7.00%, 10/01/51 | | | 1,765 | | | | 2,130,478 | |
Lower Alabama Gas District, RB, Series A, 5.00%, 09/01/46 | | | 2,110 | | | | 2,709,029 | |
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/20(a) | | | 4,080 | | | | 4,332,266 | |
| | | | | | | | |
| | | | | | | 20,094,974 | |
|
| Arizona — 4.0% | |
City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46(b) | | | 3,400 | | | | 3,547,356 | |
Salt Verde Financial Corp., RB, Senior: | | | | | | | | |
5.00%, 12/01/32 | | | 10,030 | | | | 12,381,935 | |
5.00%, 12/01/37 | | | 7,460 | | | | 9,395,124 | |
| | | | | | | | |
| | | | | | | 25,324,415 | |
|
| California — 9.7% | |
California Educational Facilities Authority, RB, Stanford University,Series V-1, 5.00%, 05/01/49 | | | 4,230 | | | | 5,922,635 | |
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20(a) | | | 6,230 | | | | 6,587,291 | |
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33 | | | 2,465 | | | | 2,760,356 | |
California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A: | | | | | | | | |
5.25%, 08/15/39 | | | 290 | | | | 324,069 | |
5.25%, 08/15/49 | | | 715 | | | | 789,017 | |
California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45(b) | | | 2,970 | | | | 3,130,440 | |
California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A(b): | | | | | | | | |
5.00%, 12/01/41 | | | 1,030 | | | | 1,124,121 | |
5.00%, 12/01/46 | | | 885 | | | | 961,765 | |
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A: | | | | | | | | |
Senior, 5.00%, 05/15/40 | | | 11,690 | | | | 12,090,500 | |
5.25%, 05/15/39 | | | 1,560 | | | | 1,562,137 | |
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40 | | | 690 | | | | 813,413 | |
County of Riverside Transportation Commission, RB, CAB, Senior Lien, Series B(c): | | | | | | | | |
0.00%, 06/01/41 | | | 5,000 | | | | 2,112,700 | |
0.00%, 06/01/42 | | | 6,000 | | | | 2,427,840 | |
0.00%, 06/01/43 | | | 5,000 | | | | 1,941,250 | |
Golden State Tobacco Securitization Corp., Refunding RB,Series A-1: | | | | | | | | |
5.00%, 06/01/47 | | | 4,335 | | | | 4,242,621 | |
5.25%, 06/01/47 | | | 1,070 | | | | 1,076,591 | |
San Marcos Unified School District, GO, CAB, Election of 2010, Series B(c): | | | | | | | | |
0.00%, 08/01/34 | | | 3,500 | | | | 2,232,300 | |
0.00%, 08/01/36 | | | 4,000 | | | | 2,370,400 | |
State of California, GO, Various Purposes, 6.00%, 03/01/33 | | | 4,970 | | | | 5,154,238 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| California (continued) | |
State of California Public Works Board, LRB, Various Capital Projects: | | | | | | | | |
Series I, 5.00%, 11/01/38 | | $ | 1,495 | | | $ | 1,657,895 | |
Sub-Series I-1, 6.38%, 11/01/19(a) | | | 2,315 | | | | 2,371,995 | |
| | | | | | | | |
| | | | | | | 61,653,574 | |
|
| Colorado — 1.4% | |
Arapahoe County School District No. 6 Littleton, GO, Series A, 5.50%, 12/01/43 | | | 3,485 | | | | 4,343,146 | |
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 07/01/34 | | | 4,205 | | | | 4,231,954 | |
| | | | | | | | |
| | | | | | | 8,575,100 | |
|
| Connecticut — 0.4% | |
State of Connecticut Health & Educational Facility Authority, RB, Ascension Health Senior Credit, Series A, 5.00%, 11/15/40 | | | 2,710 | | | | 2,752,520 | |
| | | | | | | | |
|
| Delaware — 2.4% | |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 | | | 2,225 | | | | 2,345,662 | |
Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 06/01/55 | | | 2,280 | | | | 2,545,141 | |
State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45 | | | 10,080 | | | | 10,448,525 | |
| | | | | | | | |
| | | | | | | 15,339,328 | |
|
| District of Columbia — 6.4% | |
District of Columbia, Refunding RB: | | | | | | | | |
Georgetown University, 5.00%, 04/01/35 | | | 865 | | | | 1,014,143 | |
Georgetown University Issue, 5.00%, 04/01/42 | | | 710 | | | | 819,283 | |
Kipp Charter School, Series A, 6.00%, 07/01/23(a) | | | 1,480 | | | | 1,736,040 | |
The Catholic University of America Issue, 5.00%, 10/01/48 | | | 4,590 | | | | 5,246,232 | |
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 05/15/40 | | | 23,035 | | | | 23,837,770 | |
Metropolitan Washington Airports Authority, Refunding ARB, Dulles Metrorail And Capital Improvement Projects, Series A, 5.00%, 10/01/53 | | | 3,990 | | | | 4,230,637 | |
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A: | | | | | | | | |
5.00%, 10/01/39 | | | 990 | | | | 1,001,336 | |
5.25%, 10/01/44 | | | 2,465 | | | | 2,493,175 | |
| | | | | | | | |
| | | | | | | 40,378,616 | |
|
| Florida — 2.3% | |
County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45 | | | 2,620 | | | | 2,842,150 | |
County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport,Series A-1, 5.38%, 10/01/20(a) | | | 2,280 | | | | 2,399,495 | |
Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(a) | | | 5,885 | | | | 6,645,165 | |
Stevens Plantation Community Development District, RB, Special Assessment, Series A, 7.10%, 05/01/35(d)(e) | | | 3,395 | | | | 2,716,000 | |
| | | | | | | | |
| | | | | | | 14,602,810 | |
|
| Georgia — 2.7% | |
County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48 | | | 7,225 | | | | 7,655,971 | |
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54 | | | 1,010 | | | | 1,165,015 | |
DeKalb Georgia Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39 | | | 1,650 | | | | 1,677,901 | |
| | |
| 30 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Georgia (continued) | |
Main Street Natural Gas, Inc., RB, Series A: | | | | | | | | |
5.00%, 05/15/35 | | $ | 990 | | | $ | 1,197,930 | |
5.00%, 05/15/36 | | | 990 | | | | 1,199,801 | |
5.00%, 05/15/37 | | | 1,085 | | | | 1,316,680 | |
5.00%, 05/15/38 | | | 600 | | | | 729,726 | |
5.00%, 05/15/49 | | | 1,990 | | | | 2,489,649 | |
| | | | | | | | |
| | | | | | | 17,432,673 | |
|
| Hawaii — 0.4% | |
State of Hawaii Harbor System, RB, Series A, 5.25%, 07/01/30 | | | 2,660 | | | | 2,765,043 | |
| | | | | | | | |
|
| Idaho — 0.3% | |
Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series A, 5.00%, 12/01/46 | | | 1,485 | | | | 1,704,646 | |
| | | | | | | | |
|
| Illinois — 14.9% | |
Chicago Board of Education, GO Dedicated Revenues: | | | | | | | | |
Series H, 5.00%, 12/01/36 | | | 920 | | | | 982,367 | |
Project, Series C, 5.25%, 12/01/35 | | | 2,905 | | | | 3,081,944 | |
Chicago Board of Education, GO, Refunding, Series D, 5.00%, 12/01/25 | | | 1,280 | | | | 1,382,566 | |
Chicago Board of Education, GO, Refunding Dedicated Revenues: | | | | | | | | |
Series D, 5.00%, 12/01/25 | | | 1,650 | | | | 1,782,214 | |
Series F, 5.00%, 12/01/22 | | | 1,250 | | | | 1,324,638 | |
Series G, 5.00%, 12/01/34 | | | 915 | | | | 983,351 | |
Chicago Board of Education, GO, Series D: | | | | | | | | |
5.00%, 12/01/46 | | | 1,060 | | | | 1,110,933 | |
5.00%, 12/01/46 | | | 2,745 | | | | 2,824,029 | |
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series C, 6.50%, 01/01/21(a) | | | 11,385 | | | | 12,302,973 | |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 | | | 2,055 | | | | 2,163,216 | |
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42 | | | 2,000 | | | | 2,124,860 | |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38 | | | 1,525 | | | | 1,606,771 | |
Illinois Finance Authority, RB, Chicago LLC, University of Illinois at Chicago Project, Series A: | | | | | | | | |
5.00%, 02/15/47 | | | 405 | | | | 442,256 | |
5.00%, 02/15/50 | | | 205 | | | | 223,095 | |
Illinois Finance Authority, Refunding RB: | | | | | | | | |
Ascension Health, Series A, 5.00%, 11/15/37 | | | 1,895 | | | | 2,028,654 | |
Central Dupage Health, Series B, 5.50%, 11/01/19(a) | | | 3,160 | | | | 3,220,482 | |
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project: | | | | | | | | |
Series B (AGM), 5.00%, 06/15/50 | | | 14,710 | | | | 15,072,749 | |
Series B-2, 5.00%, 06/15/50 | | | 3,905 | | | | 3,949,087 | |
Railsplitter Tobacco Settlement Authority, RB(a): | | | | | | | | |
5.50%, 06/01/21 | | | 885 | | | | 954,207 | |
6.00%, 06/01/21 | | | 2,245 | | | | 2,443,413 | |
State of Illinois, GO, 5.00%, 02/01/39 | | | 2,990 | | | | 3,103,979 | |
State of Illinois, GO, Refunding: | | | | | | | | |
Series A, 5.00%, 10/01/30 | | | 10,400 | | | | 11,420,240 | |
Series B, 5.00%, 10/01/28 | | | 1,965 | | | | 2,175,530 | |
State of Illinois, GO, Series A, 5.00%, 04/01/38 | | | 9,030 | | | | 9,344,695 | |
State of Illinois Toll Highway Authority, RB, Series C, 5.00%, 01/01/37 | | | 5,455 | | | | 6,147,021 | |
University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44 | | | 1,910 | | | | 2,088,852 | |
| | | | | | | | |
| | | | | | | 94,284,122 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Indiana — 3.5% | |
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT: | | | | | | | | |
6.75%, 01/01/34 | | $ | 1,525 | | | $ | 1,759,408 | |
7.00%, 01/01/44 | | | 3,680 | | | | 4,278,957 | |
Indiana Finance Authority, RB, Series A: | | | | | | | | |
CWA Authority Project, 1st Lien, 5.25%, 10/01/38 | | | 6,305 | | | | 6,765,832 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44 | | | 880 | | | | 949,194 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48 | | | 2,905 | | | | 3,126,797 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51 | | | 790 | | | | 857,577 | |
Sisters of St. Francis Health Services, 5.25%, 11/01/19(a) | | | 1,655 | | | | 1,684,625 | |
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40 | | | 2,490 | | | | 2,753,566 | |
| | | | | | | | |
| | | | | | | 22,175,956 | |
|
| Iowa — 1.6% | |
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project: | | | | | | | | |
Series B, 5.25%, 12/01/50(f) | | | 5,515 | | | | 5,910,260 | |
Midwestern Disaster Area, 5.25%, 12/01/25 | | | 2,125 | | | | 2,289,454 | |
Midwestern Disaster Area, 5.88%, 12/01/26(b) | | | 805 | | | | 846,111 | |
Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, SeniorSeries A-1, AMT, 5.15%, 12/01/22 | | | 825 | | | | 856,812 | |
| | | | | | | | |
| | | | | | | 9,902,637 | |
|
| Kentucky — 1.1% | |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45 | | | 1,915 | | | | 2,058,453 | |
Kentucky Economic Development Finance Authority, Refunding RB, Louisville Arena Authority, Inc. (AGM), 5.00%, 12/01/45 | | | 2,515 | | | | 2,842,453 | |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43(g) | | | 2,325 | | | | 2,344,483 | |
| | | | | | | | |
| | | | | | | 7,245,389 | |
|
| Louisiana — 2.6% | |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project,Series A-1, 6.50%, 11/01/35 | | | 6,535 | | | | 6,948,404 | |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A: | | | | | | | | |
5.50%, 05/15/30 | | | 1,980 | | | | 2,043,657 | |
5.25%, 05/15/31 | | | 1,690 | | | | 1,780,990 | |
5.25%, 05/15/32 | | | 2,160 | | | | 2,324,743 | |
5.25%, 05/15/33 | | | 2,345 | | | | 2,514,614 | |
5.25%, 05/15/35 | | | 985 | | | | 1,070,990 | |
| | | | | | | | |
| | | | | | | 16,683,398 | |
|
| Maryland — 1.1% | |
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25 | | | 1,440 | | | | 1,481,299 | |
Maryland Health & Higher Educational Facilities Authority, RB, Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46 | | | 840 | | | | 975,383 | |
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 01/01/21(a) | | | 4,295 | | | | 4,613,388 | |
| | | | | | | | |
| | | | | | | 7,070,070 | |
|
| Michigan — 3.4% | |
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39 | | | 8,665 | | | | 9,382,375 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 31 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Michigan (continued) | |
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 07/01/41 | | $ | 2,870 | | | $ | 3,083,844 | |
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital: | | | | | | | | |
5.50%, 05/15/20(a) | | | 1,490 | | | | 1,547,902 | |
5.50%, 05/15/36 | | | 1,210 | | | | 1,248,768 | |
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien,Series C-1, 5.00%, 07/01/44 | | | 1,710 | | | | 1,829,136 | |
Michigan State University, Refunding RB, Board of Trustees, Series B, 5.00%, 02/15/48 | | | 2,000 | | | | 2,359,640 | |
Michigan Strategic Fund, RB,I-75 Improvement Projects, AMT, 5.00%, 06/30/48 | | | 2,120 | | | | 2,417,330 | |
| | | | | | | | |
| | | | | | | 21,868,995 | |
|
| Minnesota — 1.1% | |
Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A: | | | | | | | | |
4.25%, 02/15/48 | | | 2,030 | | | | 2,141,386 | |
5.25%, 02/15/53 | | | 4,060 | | | | 4,653,856 | |
| | | | | | | | |
| | | | | | | 6,795,242 | |
|
| Missouri — 0.5% | |
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44 | | | 495 | | | | 542,970 | |
State of Missouri Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Services, 5.50%, 02/01/42 | | | 2,035 | | | | 2,067,764 | |
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43 | | | 480 | | | | 516,686 | |
| | | | | | | | |
| | | | | | | 3,127,420 | |
|
| Nebraska — 1.4% | |
Central Plains Nebraska Energy Project, RB, Gas Project No. 3: | | | | | | | | |
5.25%, 09/01/37 | | | 1,610 | | | | 1,755,979 | |
5.00%, 09/01/42 | | | 2,815 | | | | 3,048,786 | |
County of Douglas Nebraska Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 01/01/40 | | | 3,280 | | | | 3,354,390 | |
County of Lancaster Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, Health Facilities, 5.63%, 01/01/40 | | | 600 | | | | 613,608 | |
| | | | | | | | |
| | | | | | | 8,772,763 | |
|
| New Hampshire — 0.7% | |
New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project(b): | | | | | | | | |
Series B, 4.63%, 11/01/42 | | | 3,055 | | | | 3,093,493 | |
Series C, AMT, 4.88%, 11/01/42 | | | 1,585 | | | | 1,616,890 | |
| | | | | | | | |
| | | | | | | 4,710,383 | |
|
| New Jersey — 11.4% | |
Casino Reinvestment Development Authority, Refunding RB: | | | | | | | | |
5.25%, 11/01/39 | | | 3,280 | | | | 3,530,789 | |
5.25%, 11/01/44 | | | 2,980 | | | | 3,203,262 | |
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(b) | | | 2,115 | | | | 2,129,086 | |
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel,Sub-Series B, 6.25%, 01/01/37(d)(e) | | | 3,680 | | | | 38,640 | |
New Jersey EDA, RB: | | | | | | | | |
Continental Airlines, Inc. Project, AMT, 4.88%, 09/15/19 | | | 430 | | | | 433,728 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| New Jersey (continued) | |
Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29 | | $ | 3,830 | | | $ | 4,177,802 | |
Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30 | | | 2,035 | | | | 2,315,911 | |
Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 01/01/43 | | | 2,285 | | | | 2,522,594 | |
Series EEE, 5.00%, 06/15/48 | | | 7,320 | | | | 8,014,156 | |
New Jersey EDA, Refunding ARB, Port Network Container Terminal LLC Project, AMT, 5.00%, 10/01/47 | | | 2,905 | | | | 3,159,914 | |
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 04/01/28 | | | 8,000 | | | | 9,301,120 | |
New Jersey State Turnpike Authority, RB: | | | | | | | | |
Series A, 5.00%, 01/01/43 | | | 3,035 | | | | 3,292,884 | |
Series E, 5.00%, 01/01/45 | | | 5,095 | | | | 5,714,654 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
Transportation Program, Series AA, 5.00%, 06/15/44 | | | 1,320 | | | | 1,402,051 | |
Transportation Program, Series AA, 5.00%, 06/15/44 | | | 2,445 | | | | 2,564,683 | |
Transportation System, Series A, 5.50%, 06/15/41 | | | 8,000 | | | | 8,387,120 | |
Transportation System, Series B, 5.25%, 06/15/36 | | | 4,810 | | | | 5,019,331 | |
Tobacco Settlement Financing Corp., Refunding RB, Series A, 5.25%, 06/01/46 | | | 1,070 | | | | 1,196,891 | |
Tobacco Settlement Financing Corp. New Jersey, Refunding RB,Sub-Series B, 5.00%, 06/01/46 | | | 5,800 | | | | 6,049,168 | |
| | | | | | | | |
| | | | | | | 72,453,784 | |
|
| New York — 9.8% | |
City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Fiscal 2012,Sub-Series E-1, 5.00%, 02/01/42 | | | 4,805 | | | | 5,171,862 | |
Counties of New York Tobacco Trust II, RB, SettlementPass-Through, 5.75%, 06/01/43 | | | 840 | | | | 852,802 | |
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41(b) | | | 3,600 | | | | 3,687,768 | |
Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through,Series A-2B, 5.00%, 06/01/45 | | | 9,395 | | | | 9,845,020 | |
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44 | | | 1,688 | | | | 1,834,498 | |
Metropolitan Transportation Authority, RB, Series B: | | | | | | | | |
5.25%, 11/15/38 | | | 4,640 | | | | 5,261,528 | |
5.25%, 11/15/39 | | | 1,650 | | | | 1,874,103 | |
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 | | | 2,400 | | | | 2,476,296 | |
3 World Trade Center Project, Class 1, 5.00%, 11/15/44(b) | | | 7,830 | | | | 8,424,532 | |
3 World Trade Center Project, Class 2, 5.15%, 11/15/34(b) | | | 660 | | | | 727,485 | |
3 World Trade Center Project, Class 2, 5.38%, 11/15/40(b) | | | 1,655 | | | | 1,817,587 | |
New York State Dormitory Authority, Refunding RB, Series D, 5.00%, 02/15/37 | | | 6,655 | | | | 7,209,428 | |
New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.00%, 07/01/46 | | | 1,165 | | | | 1,263,769 | |
New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31 | | | 2,585 | | | | 2,709,907 | |
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8: | | | | | | | | |
6.00%, 12/01/36 | | | 2,525 | | | | 2,673,445 | |
6.00%, 12/01/42 | | | 1,960 | | | | 2,074,307 | |
State of New York Environmental Facilities Corp., RB, Subordinated SRF Bonds, Series B, 5.00%, 06/15/48 | | | 3,535 | | | | 4,209,443 | |
| | | | | | | | |
| | | | | | | 62,113,780 | |
| | |
| 32 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| North Carolina — 0.2% | |
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21(a) | | $ | 1,130 | | | $ | 1,250,277 | |
| | | | | | | | |
|
| North Dakota — 0.3% | |
County of Cass North Dakota, Refunding RB, Essentia Health Obligated Group, Series B, 5.25%, 02/15/58 | | | 1,885 | | | | 2,114,084 | |
| | | | | | | | |
|
| Ohio — 3.0% | |
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term,Series A-2, 5.88%, 06/01/47 | | | 5,550 | | | | 5,258,625 | |
County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 06/01/20(a) | | | 6,125 | | | | 6,356,096 | |
County of Franklin Ohio, RB: | | | | | | | | |
Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40 | | | 1,280 | | | | 1,386,496 | |
Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46 | | | 800 | | | | 918,328 | |
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.00%, 05/01/39 | | | 3,545 | | | | 3,554,572 | |
State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53 | | | 1,585 | | | | 1,694,492 | |
| | | | | | | | |
| | | | | | | 19,168,609 | |
|
| Oklahoma — 1.7% | |
City of Oklahoma Turnpike Authority, RB, Series A, 4.00%, 01/01/48 | | | 4,065 | | | | 4,299,591 | |
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48 | | | 2,350 | | | | 2,666,568 | |
Oklahoma Turnpike Authority, RB, 2nd Series C, 4.00%, 01/01/42 | | | 3,845 | | | | 4,105,999 | |
| | | | | | | | |
| | | | | | | 11,072,158 | |
|
| Pennsylvania — 2.4% | |
Allentown Neighborhood Improvement Zone Development Authority, RB, Subordinate, City Center Project(b): | | | | | | | | |
5.00%, 05/01/28 | | | 460 | | | | 489,109 | |
5.13%, 05/01/32 | | | 470 | | | | 494,379 | |
5.38%, 05/01/42 | | | 870 | | | | 917,911 | |
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42 | | | 1,240 | | | | 1,333,632 | |
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A: | | | | | | | | |
4.00%, 09/01/49 | | | 1,135 | | | | 1,182,500 | |
5.00%, 09/01/43 | | | 2,505 | | | | 2,863,967 | |
Pennsylvania Economic Development Financing Authority, RB: | | | | | | | | |
AMT, 5.00%, 06/30/42 | | | 1,660 | | | | 1,818,696 | |
Aqua Pennsylvania, Inc. Project, Series B, 5.00%, 11/15/40 | | | 3,725 | | | | 3,783,296 | |
Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44 | | | 2,155 | | | | 2,400,605 | |
| | | | | | | | |
| | | | | | | 15,284,095 | |
|
| Puerto Rico — 3.1% | |
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds: | | | | | | | | |
5.50%, 05/15/39 | | | 1,365 | | | | 1,380,220 | |
5.63%, 05/15/43 | | | 1,360 | | | | 1,374,919 | |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Senior Lien, Series A: | | | | | | | | |
5.00%, 07/01/33 | | | 4,920 | | | | 4,840,050 | |
5.13%, 07/01/37 | | | 1,410 | | | | 1,387,088 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Puerto Rico (continued) | |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A: | | | | | | | | |
6.00%, 07/01/38 | | $ | 1,455 | | | $ | 1,456,819 | |
6.00%, 07/01/44 | | | 2,630 | | | | 2,633,287 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured,Series A-1: | | | | | | | | |
4.50%, 07/01/34 | | | 55 | | | | 55,795 | |
4.75%, 07/01/53 | | | 2,191 | | | | 2,092,624 | |
5.00%, 07/01/58 | | | 4,796 | | | | 4,726,746 | |
| | | | | | | | |
| | | | | | | 19,947,548 | |
|
| Rhode Island — 2.3% | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.00%, 06/01/35 | | | 3,060 | | | | 3,281,636 | |
Series B, 4.50%, 06/01/45 | | | 5,175 | | | | 5,087,284 | |
Series B, 5.00%, 06/01/50 | | | 5,765 | | | | 5,913,564 | |
| | | | | | | | |
| | | | | | | 14,282,484 | |
|
| South Carolina — 6.7% | |
South Carolina Jobs EDA, Refunding RB: | | | | | | | | |
Anmed Health Project, 5.00%, 02/01/36 | | | 5,115 | | | | 5,671,665 | |
Prisma Health Obligated Group, Series A, 5.00%, 05/01/48 | | | 6,075 | | | | 6,893,060 | |
State of South Carolina Ports Authority, ARB: | | | | | | | | |
5.25%, 07/01/20(a) | | | 6,455 | | | | 6,724,690 | |
AMT, 5.25%, 07/01/55 | | | 2,525 | | | | 2,818,153 | |
State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54 | | | 12,065 | | | | 13,397,941 | |
State of South Carolina Public Service Authority, Refunding RB: | | | | | | | | |
Series A, 5.00%, 12/01/50 | | | 2,805 | | | | 3,102,414 | |
Series E, 5.25%, 12/01/55 | | | 3,335 | | | | 3,744,171 | |
| | | | | | | | |
| | | | | | | 42,352,094 | |
|
| Tennessee — 1.0% | |
City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45 | | | 2,660 | | | | 2,859,261 | |
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40 | | | 1,350 | | | | 1,514,443 | |
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A, 5.25%, 10/01/58 | | | 1,925 | | | | 2,214,270 | |
| | | | | | | | |
| | | | | | | 6,587,974 | |
|
| Texas — 14.1% | |
Central Texas Regional Mobility Authority, Refunding RB: | | | | | | | | |
Senior Lien, 6.25%, 01/01/21(a) | | | 4,210 | | | | 4,518,509 | |
Sub-Lien, 5.00%, 01/01/33 | | | 700 | | | | 760,312 | |
City of Austin Texas Airport System, ARB, AMT, 5.00%, 11/15/39 | | | 385 | | | | 428,028 | |
City of Houston Texas Combined Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 05/15/19(a) | | | 12,060 | | | | 12,079,055 | |
City of San Antonio Texas Electric & Gas Systems Revenue, Refunding RB, Series A, 5.00%, 02/01/48 | | | 2,295 | | | | 2,732,174 | |
County of Fort Bend Texas Industrial Development Corp., RB, NRG Energy Inc. Project, Series B, 4.75%, 11/01/42 | | | 470 | | | | 482,478 | |
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B(a): | | | | | | | | |
7.00%, 01/01/23 | | | 380 | | | | 451,235 | |
7.00%, 01/01/23 | | | 500 | | | | 593,730 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 33 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Texas (continued) | |
County of Harris Texas-Houston Sports Authority, Refunding RB(c): | | | | | | | | |
3rd Lien, Series A (NPFGC), 0.00%, 11/15/24(a) | | $ | 6,000 | | | $ | 2,494,560 | |
3rd Lien, Series A (NPFGC), 0.00%, 11/15/37 | | | 20,120 | | | | 7,708,978 | |
CAB, Junior Lien, Series H (NPFGC), 0.00%, 11/15/35 | | | 5,000 | | | | 2,461,250 | |
CAB, Senior Lien, Series A (NPFGC) (AGM), 0.00%, 11/15/38 | | | 12,580 | | | | 5,269,259 | |
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A(c): | | | | | | | | |
0.00%, 09/15/40 | | | 9,780 | | | | 3,975,766 | |
0.00%, 09/15/41 | | | 5,420 | | | | 2,084,857 | |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB: | | | | | | | | |
Christus Health, Series B, 5.00%, 07/01/48 | | | 9,025 | | | | 10,363,227 | |
Scott & White Healthcare, 6.00%, 08/15/20(a) | | | 7,345 | | | | 7,748,755 | |
New Hope Cultural Education Facilities Corp., RB, Collegiate Housing Tarleton State University Project, 5.00%, 04/01/35 | | | 355 | | | | 380,471 | |
New Hope Cultural Education Facilities Finance Corp., Refunding RB, Jubilee Academic Center, Series A, 5.00%, 08/15/46(b) | | | 1,980 | | | | 2,004,156 | |
San Antonio Water System, Refunding RB, Junior Lien, Series A, 5.00%, 05/15/48 | | | 5,035 | | | | 5,917,635 | |
Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements, 5.00%, 12/15/32 | | | 2,835 | | | | 3,062,339 | |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien: | | | | | | | | |
LBJ Infrastructure Group LLC, 7.00%, 06/30/40 | | | 6,000 | | | | 6,340,980 | |
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 | | | 5,100 | | | | 5,262,639 | |
Texas Transportation Commission, RB, First Tier Toll Revenue, 5.00%, 08/01/57 | | | 2,310 | | | | 2,612,009 | |
| | | | | | | | |
| | | | | | | 89,732,402 | |
|
| Utah — 0.8% | |
City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT: | | | | | | | | |
5.00%, 07/01/48 | | | 1,735 | | | | 2,003,162 | |
5.00%, 07/01/47 | | | 1,830 | | | | 2,087,646 | |
Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy, Series A, 3.25%, 10/15/42 | | | 1,105 | | | | 1,006,047 | |
| | | | | | | | |
| | | | | | | 5,096,855 | |
|
| Virginia — 1.4% | |
County of Front Royal & Warren IDA, RB, Valley Health System Obligated Group, 4.00%, 01/01/50 | | | 1,465 | | | | 1,520,729 | |
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT: | | | | | | | | |
5.25%, 01/01/32 | | | 3,155 | | | | 3,378,500 | |
6.00%, 01/01/37 | | | 3,790 | | | | 4,181,242 | |
| | | | | | | | |
| | | | | | | 9,080,471 | |
|
| Washington — 1.6% | |
Port of Seattle Washington, ARB, Series A, AMT, 5.00%, 05/01/43 | | | 2,980 | | | | 3,390,286 | |
Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40 | | | 1,475 | | | | 1,629,551 | |
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45 | | | 4,420 | | | | 4,870,663 | |
| | | | | | | | |
| | | | | | | 9,890,500 | |
|
| Wisconsin — 0.3% | |
State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33 | | | 1,640 | | | | 1,666,617 | |
| | | | | | | | |
| |
Total Municipal Bonds — 125.2%
(Cost — $745,392,014) | | | | 795,353,806 | |
| | | | | | | | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
Municipal Bonds Transferred to Tender Option Bond Trusts(h) | |
|
| California — 4.5% | |
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, 4.00%, 04/01/42(b)(f)(i) | | $ | 6,196 | | | $ | 6,616,499 | |
City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19(a) | | | 18,540 | | | | 18,870,507 | |
San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(a) | | | 3,261 | | | | 3,292,131 | |
| | | | | | | | |
| | | | | | | 28,779,137 | |
|
| Colorado — 0.8% | |
City & County of Denver Colorado Airport System Revenue, Refunding ARB, Subordinate System, Series A, AMT, 5.25%, 12/01/48(b)(f)(i) | | | 4,475 | | | | 5,296,660 | |
| | | | | | | | |
|
| Florida — 1.1% | |
County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/20(a) | | | 6,629 | | | | 6,941,464 | |
| | | | | | | | |
|
| Illinois — 0.5% | |
Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 4.00%, 02/15/41 | | | 2,805 | | | | 2,970,046 | |
| | | | | | | | |
|
| Massachusetts — 3.1% | |
Commonwealth of Massachusetts Transportation Fund Revenue, RB, Rail Enhancement Program, Series A, 4.00%, 06/01/45 | | | 4,153 | | | | 4,384,612 | |
Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 5.00%, 07/01/47 | | | 9,088 | | | | 10,316,084 | |
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41 | | | 4,427 | | | | 4,721,348 | |
| | | | | | | | |
| | | | | | | 19,422,044 | |
|
| New York — 12.7% | |
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution,Series FF-2, 5.50%, 06/15/40 | | | 3,075 | | | | 3,088,837 | |
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series HH, 5.00%, 06/15/31(i) | | | 16,395 | | | | 17,517,238 | |
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(i): | | | | | | | | |
5.75%, 02/15/21(a) | | | 1,938 | | | | 2,073,648 | |
5.75%, 02/15/47 | | | 1,192 | | | | 1,275,646 | |
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43 | | | 20,864 | | | | 22,658,736 | |
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(i) | | | 12,611 | | | | 13,797,982 | |
Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55 | | | 5,070 | | | | 5,866,903 | |
State of New York Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/46 | | | 13,155 | | | | 14,226,738 | |
| | | | | | | | |
| | | | | | | 80,505,728 | |
|
| North Carolina — 0.9% | |
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55 | | | 4,960 | | | | 5,635,874 | |
| | | | | | | | |
|
| Pennsylvania — 0.9% | |
Pennsylvania Turnpike Commission, RB,Sub-Series A, 5.50%, 12/01/42 | | | 4,652 | | | | 5,462,042 | |
| | | | | | | | |
| | |
| 34 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Rhode Island — 0.5% | |
Narragansett Bay Commission, Refunding RB, Wastewater System, Series A, 4.00%, 09/01/43(b)(f) | | $ | 3,137 | | | $ | 3,225,192 | |
| | | | | | | | |
|
| Texas — 4.5% | |
City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43 | | | 4,900 | | | | 5,379,147 | |
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41 | | | 6,650 | | | | 7,109,582 | |
Lower Colorado River Authority, Refunding RB, LCRA Transmission Services Corporation Project, 4.00%, 05/15/43(b)(f) | | | 4,140 | | | | 4,242,299 | |
San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing And Expansion Project, 4.00%, 09/15/42(b)(f) | | | 5,505 | | | | 5,678,242 | |
University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43 | | | 6,003 | | | | 6,538,158 | |
| | | | | | | | |
| | | | | | | 28,947,428 | |
|
| Utah — 1.1% | |
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19(a) | | | 7,153 | | | | 7,222,989 | |
| | | | | | | | |
|
| Wisconsin — 0.9% | |
State of Wisconsin Health & Educational Facilities Authority, Refunding RB, The Medical College of Wisconsin, Inc., 4.00%, 12/01/46 | | | 5,575 | | | | 5,816,480 | |
| | | | | | | | |
| |
Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 31.5%
(Cost — $191,791,892) | | | | 200,225,084 | |
| | | | | |
| |
Total Long-Term Investments — 156.7%
(Cost — $937,183,906) | | | | 995,578,890 | |
| | | | | | | | |
| | | | | | | | |
| Security | |
Shares | | | Value | |
|
| Short-Term Securities — 2.9% | |
BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.94%(j)(k) | | | 18,183,806 | | | $ | 18,185,624 | |
| | | | | | | | |
| |
Total Short-Term Securities — 2.9%
(Cost — $18,187,353) | | | | 18,185,624 | |
| | | | | |
| |
Total Investments — 159.6%
(Cost — $955,371,259) | | | | 1,013,764,514 | |
| |
Other Assets Less Liabilities — 1.9% | | | | 12,341,653 | |
| |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (18.9)% | | | | (120,230,639 | ) |
| |
VMTP Shares at Liquidation Value — (42.6)% | | | | (270,800,000 | ) |
| | | | | |
| |
Net Assets Applicable to Common Shares — 100.0% | | | $ | 635,075,528 | |
| | | | | |
| (a) | U.S. Government securities held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (d) | Issuer filed for bankruptcy and/or is in default. |
| (e) | Non-income producing security. |
| (f) | 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. |
| (g) | 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. |
| (h) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (i) | All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expire between June, 15, 2019 to June, 1, 2026, is $27,564,184. See Note 4 of the Notes to Financial Statements for details. |
| (j) | Annualized7-day yield as of period end. |
| (k) | During the year ended April 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliate | | Shares
Held at
04/30/18 | | | Net
Activity | | | Shares
Held at
04/30/19 | | | Value at
04/30/19 | | | Income | | | Net
Realized
Gain (Loss) (a) | | | Change in
Unrealized
Appreciation
(Depreciation) | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | 4,633,327 | | | | 13,550,479 | | | | 18,183,806 | | | $ | 18,185,624 | | | $ | 78,219 | | | $ | 417 | | | $ | (1,729 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (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 | | | 80 | | | | 06/19/19 | | | $ | 9,894 | | | $ | (27,410 | ) |
Long U.S. Treasury Bond | | | 273 | | | | 06/19/19 | | | | 40,259 | | | | (171,092 | ) |
5-Year U.S. Treasury Note | | | 26 | | | | 06/28/19 | | | | 3,007 | | | | (14,708 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (213,210 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 35 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Municipal Income Trust (BFK) |
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 | |
Liabilities — Derivative Financial Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(a) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 213,210 | | | $ | — | | | $ | 213,210 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss) | |
For the year ended April 30, 2019, 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 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (1,077,979 | ) | | $ | — | | | $ | (1,077,979 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (255,681 | ) | | $ | — | | | $ | (255,681 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | |
Average notional value of contracts — short | | $ | 42,172,855 | |
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) | | $ | — | | | $ | 995,578,890 | | | $ | — | | | $ | 995,578,890 | |
Short-Term Securities | | | 18,185,624 | | | | — | | | | — | | | | 18,185,624 | |
| | | | | | | | | | | | | | | | |
| | $ | 18,185,624 | | | $ | 995,578,890 | | | $ | | | | $ | 1,013,764,514 | |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments(b) | |
Liabilities: | |
Interest rate contracts | | $ | (213,210 | ) | | $ | — | | | $ | — | | | $ | (213,210 | ) |
| | | | | | | | | | | | | | | | |
| | (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 Fund 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 | | $ | — | | | $ | (119,623,727 | ) | | $ | — | | | $ | (119,623,727 | ) |
VMTP Shares at Liquidation Value | | | — | | | | (270,800,000 | ) | | | — | | | | (270,800,000 | ) |
| | | | | | | | | | | | | | | | |
| | $ | — | | | $ | (390,423,727 | ) | | $ | — | | | $ | (390,423,727 | ) |
| | | | | | | | | | | | | | | | |
See notes to financial statements.
| | |
| 36 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments April 30, 2019 | | BlackRock Strategic Municipal Trust (BSD) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
Municipal Bonds — 120.2% | |
|
Alabama — 2.0% | |
County of Jefferson Alabama Sewer, Refunding RB,Sub-Lien, Series D, 7.00%, 10/01/51 | | $ | 1,115 | | | $ | 1,345,883 | |
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/20(a) | | | 655 | | | | 695,499 | |
| | | | | | | | |
| | | | | | | 2,041,382 | |
|
| Alaska — 0.1% | |
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 4.63%, 06/01/23 | | | 75 | | | | 75,020 | |
| | | | | | | | |
|
| Arizona — 1.5% | |
County of Maricopa IDA, Refunding RB, Honorhealth, Series A, 4.13%, 09/01/38 | | | 230 | | | | 247,570 | |
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37 | | | 1,000 | | | | 1,259,400 | |
| | | | | | | | |
| | | | | | | 1,506,970 | |
|
| California — 10.1% | |
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20(a) | | | 1,010 | | | | 1,067,923 | |
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33 | | | 400 | | | | 447,928 | |
California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A: | | | | | | | | |
5.25%, 08/15/39 | | | 45 | | | | 50,287 | |
5.25%, 08/15/49 | | | 115 | | | | 126,905 | |
California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45(b) | | | 475 | | | | 500,659 | |
California School Finance Authority, RB, Alliance For College-Ready Public School Projects, Series A, 5.00%, 07/01/51(b) | | | 500 | | | | 540,790 | |
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A: | | | | | | | | |
Senior, 5.00%, 05/15/40 | | | 1,875 | | | | 1,939,237 | |
5.25%, 05/15/39 | | | 250 | | | | 250,343 | |
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38 | | | 110 | | | | 129,884 | |
County of California Tobacco Securitization Agency, Refunding RB, Golden Gate Tobacco Funding Corp., Series A, 5.00%, 06/01/36 | | | 350 | | | | 349,990 | |
Golden State Tobacco Securitization Corp., Refunding RB,Series A-1, 5.00%, 06/01/47 | | | 880 | | | | 861,247 | |
State of California, GO, Various Purposes, 6.00%, 03/01/33 | | | 800 | | | | 829,656 | |
State of California Public Works Board, LRB, Various Capital Projects: | | | | | | | | |
Series I, 5.00%, 11/01/38 | | | 240 | | | | 266,150 | |
Sub-SeriesI-1, 6.38%, 11/01/19(a) | | | 375 | | | | 384,233 | |
State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33 | | | 915 | | | | 1,028,780 | |
Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, SeniorSeries A-1: | | | | | | | | |
5.00%, 06/01/37 | | | 1,110 | | | | 1,116,471 | |
5.13%, 06/01/46 | | | 605 | | | | 605,702 | |
| | | | | | | | |
| | | | | | | 10,496,185 | |
|
| Colorado — 2.9% | |
Colorado Health Facilities Authority, Refunding RB: | | | | | | | | |
Catholic Health Initiative, Series A, 5.50%, 07/01/34 | | | 680 | | | | 684,359 | |
Catholic Health Initiatives, SeriesB-1, 4.00%, 07/01/39 | | | 515 | | | | 526,011 | |
Denver Convention Center Hotel Authority, Refunding RB, 5.00%, 12/01/40 | | | 1,325 | | | | 1,482,489 | |
Regional Transportation District, COP, Refunding, Series A, 5.38%, 06/01/31 | | | 320 | | | | 331,546 | |
| | | | | | | | |
| | | | | | | 3,024,405 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Connecticut — 0.9% | |
Connecticut Housing Finance Authority, Refunding RB, S/F Housing,Sub-Series B-1, 4.00%, 05/15/45 | | $ | 930 | | | $ | 967,981 | |
| | | | | | | | |
|
| Delaware — 2.0% | |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 | | | 820 | | | | 864,469 | |
State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45 | | | 1,210 | | | | 1,254,237 | |
| | | | | | | | |
| | | | | | | 2,118,706 | |
|
| District of Columbia — 1.8% | |
District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 06/01/41 | | | 690 | | | | 728,585 | |
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A: | | | | | | | | |
5.00%, 10/01/39 | | | 160 | | | | 161,832 | |
5.25%, 10/01/44 | | | 1,000 | | | | 1,011,430 | |
| | | | | | | | |
| | | | | | | 1,901,847 | |
|
| Florida — 1.8% | |
Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(a) | | | 950 | | | | 1,072,711 | |
Village Community Development District No.10, Special Assessment Bonds, 5.13%, 05/01/43 | | | 710 | | | | 766,488 | |
| | | | | | | | |
| | | | | | | 1,839,199 | |
|
| Georgia — 1.4% | |
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54 | | | 160 | | | | 184,557 | |
DeKalb Georgia Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39 | | | 265 | | | | 269,481 | |
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49 | | | 780 | | | | 975,842 | |
| | | | | | | | |
| | | | | | | 1,429,880 | |
|
| Hawaii — 0.4% | |
State of Hawaii Harbor System, RB, Series A, 5.25%, 07/01/30 | | | 425 | | | | 441,783 | |
| | | | | | | | |
|
| Illinois — 19.5% | |
Chicago Board of Education, GO, Project, Series C, 5.25%, 12/01/35 | | | 490 | | | | 519,846 | |
Chicago Board of Education, GO, Refunding Dedicated Revenues: | | | | | | | | |
Series C, 5.00%, 12/01/25 | | | 215 | | | | 232,228 | |
Series D, 5.00%, 12/01/27 | | | 280 | | | | 305,284 | |
Series D, 5.00%, 12/01/31 | | | 150 | | | | 162,913 | |
Series F, 5.00%, 12/01/22 | | | 205 | | | | 217,241 | |
Series G, 5.00%, 12/01/44 | | | 150 | | | | 157,861 | |
Chicago Board of Education, GO: | | | | | | | | |
Series D, 5.00%, 12/01/46 | | | 175 | | | | 183,409 | |
Series C, 5.00%, 12/01/46 | | | 460 | | | | 473,243 | |
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien: | | | | | | | | |
5.63%, 01/01/21(a) | | | 645 | | | | 687,886 | |
5.63%, 01/01/35 | | | 155 | | | | 164,288 | |
Series A, 5.75%, 01/01/21(a) | | | 1,260 | | | | 1,346,348 | |
Series A, 5.75%, 01/01/39 | | | 240 | | | | 254,626 | |
Series C, 6.50%, 01/01/21(a) | | | 1,855 | | | | 2,004,569 | |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 | | | 330 | | | | 347,378 | |
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42 | | | 500 | | | | 531,215 | |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38 | | | 245 | | | | 258,137 | |
Illinois Finance Authority, Refunding RB: | | | | | | | | |
Ascension Health, Series A, 5.00%, 11/15/37 | | | 305 | | | | 326,512 | |
Central Dupage Health, Series B, 5.50%, 11/01/19(a) | | | 2,500 | | | | 2,547,850 | |
Presence Health Network, Series C, 5.00%, 02/15/41 | | | 1,600 | | | | 1,824,960 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 37 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Strategic Municipal Trust (BSD) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Illinois (continued) | |
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project: | | | | | | | | |
CAB, Series B (AGM), 0.00%, 06/15/44(c) | | $ | 2,980 | | | $ | 1,055,009 | |
Series B (AGM), 5.00%, 06/15/50 | | | 1,280 | | | | 1,311,565 | |
SeriesB-2, 5.00%, 06/15/50 | | | 795 | | | | 803,976 | |
Railsplitter Tobacco Settlement Authority, RB(a): | | | | | | | | |
5.50%, 06/01/21 | | | 175 | | | | 188,685 | |
6.00%, 06/01/21 | | | 940 | | | | 1,023,077 | |
State of Illinois, GO, Refunding, Series B, 5.00%, 10/01/27 | | | 225 | | | | 248,566 | |
State of Illinois, GO: | | | | | | | | |
5.00%, 03/01/37 | | | 455 | | | | 467,826 | |
Series A, 5.00%, 04/01/35 | | | 1,000 | | | | 1,039,640 | |
Series A, 5.00%, 04/01/38 | | | 1,135 | | | | 1,174,555 | |
University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44 | | | 310 | | | | 339,028 | |
| | | | | | | | |
| | | | | | | 20,197,721 | |
|
| Indiana — 4.4% | |
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT: | | | | | | | | |
6.75%, 01/01/34 | | | 245 | | | | 282,659 | |
7.00%, 01/01/44 | | | 1,090 | | | | 1,267,408 | |
Indiana Finance Authority, RB, Series A: | | | | | | | | |
CWA Authority Project, 1st Lien, 5.25%, 10/01/38 | | | 1,020 | | | | 1,094,552 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44 | | | 140 | | | | 151,008 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48 | | | 465 | | | | 500,503 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51 | | | 125 | | | | 135,693 | |
Sisters of St. Francis Health Services, 5.25%, 11/01/19(a) | | | 270 | | | | 274,833 | |
Indiana Finance Authority, Refunding RB, Marquette Project, 4.75%, 03/01/32 | | | 350 | | | | 357,080 | |
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40 | | | 400 | | | | 442,340 | |
| | | | | | | | |
| | | | | | | 4,506,076 | |
|
| Iowa — 1.3% | |
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project: | | | | | | | | |
Series B, 5.25%, 12/01/50(d) | | | 890 | | | | 953,786 | |
Midwestern Disaster Area, 5.25%, 12/01/25 | | | 145 | | | | 156,222 | |
Midwestern Disaster Area, 5.88%, 12/01/26(b) | | | 130 | | | | 136,639 | |
Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, SeniorSeries A-1, AMT, 5.15%, 12/01/22 | | | 130 | | | | 135,013 | |
| | | | | | | | |
| | | | | | | 1,381,660 | |
|
| Kentucky — 4.9% | |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45 | | | 325 | | | | 349,346 | |
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/24(c) | | | 5,000 | | | | 4,325,950 | |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43(e) | | | 375 | | | | 378,142 | |
| | | | | | | | |
| | | | | | | 5,053,438 | |
|
| Louisiana — 2.6% | |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project,Series A-1, 6.50%, 11/01/35 | | | 1,055 | | | | 1,121,739 | |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A: | | | | | | | | |
5.50%, 05/15/30 | | | 320 | | | | 330,288 | |
5.25%, 05/15/31 | | | 270 | | | | 284,537 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Louisiana (continued) | |
5.25%, 05/15/32 | | $ | 345 | | | $ | 371,313 | |
5.25%, 05/15/33 | | | 375 | | | | 402,124 | |
5.25%, 05/15/35 | | | 160 | | | | 173,968 | |
| | | | | | | | |
| | | | | | | 2,683,969 | |
|
| Maryland — 1.5% | |
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 06/01/20(a) | | | 135 | | | | 140,962 | |
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25 | | | 645 | | | | 663,498 | |
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 01/01/21(a) | | | 690 | | | | 741,150 | |
| | | | | | | | |
| | | | | | | 1,545,610 | |
|
| Massachusetts — 1.2% | |
Massachusetts Development Finance Agency, RB: | | | | | | | | |
Emerson College Issue, Series A, 5.00%, 01/01/47 | | | 540 | | | | 603,947 | |
UMass Boston Student Housing Project, 5.00%, 10/01/48 | | | 600 | | | | 649,332 | |
| | | | | | | | |
| | | | | | | 1,253,279 | |
|
| Michigan — 3.2% | |
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39 | | | 1,925 | | | | 2,084,371 | |
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 07/01/41 | | | 465 | | | | 499,647 | |
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital: | | | | | | | | |
5.50%, 05/15/20(a) | | | 240 | | | | 249,326 | |
5.50%, 05/15/36 | | | 195 | | | | 201,248 | |
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien,Series C-1, 5.00%, 07/01/44 | | | 275 | | | | 294,159 | |
| | | | | | | | |
| | | | | | | 3,328,751 | |
|
| Minnesota — 1.6% | |
Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A: | | | | | | | | |
4.25%, 02/15/48 | | | 1,190 | | | | 1,255,295 | |
5.25%, 02/15/58 | | | 400 | | | | 455,716 | |
| | | | | | | | |
| | | | | | | 1,711,011 | |
|
| Missouri — 1.0% | |
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44 | | | 80 | | | | 87,753 | |
County of St. Louis Missouri IDA, Refunding RB, Friendship Village St. Louis Obligated Group, 5.00%, 09/01/37 | | | 500 | | | | 535,835 | |
State of Missouri Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Services, 5.50%, 02/01/42 | | | 330 | | | | 335,313 | |
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43 | | | 80 | | | | 86,114 | |
| | | | | | | | |
| | | | | | | 1,045,015 | |
|
| Nebraska — 1.5% | |
Central Plains Nebraska Energy Project, RB, Gas Project No. 3: | | | | | | | | |
5.25%, 09/01/37 | | | 260 | | | | 283,574 | |
5.00%, 09/01/42 | | | 455 | | | | 492,788 | |
County of Douglas Nebraska Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 01/01/40 | | | 720 | | | | 736,330 | |
| | | | | | | | |
| | | | | | | 1,512,692 | |
| | |
| 38 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Strategic Municipal Trust (BSD) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| New Hampshire — 0.8% | |
New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project(b): | | | | | | | | |
Series B, 4.63%, 11/01/42 | | $ | 490 | | | $ | 496,174 | |
Series C, AMT, 4.88%, 11/01/42 | | | 285 | | | | 290,734 | |
| | | | | | | | |
| | | | | | | 786,908 | |
|
| New Jersey — 11.3% | |
Casino Reinvestment Development Authority, Refunding RB: | | | | | | | | |
5.25%, 11/01/39 | | | 320 | | | | 344,467 | |
5.25%, 11/01/44 | | | 610 | | | | 655,701 | |
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(b) | | | 340 | | | | 342,264 | |
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel,Sub-Series B, 6.25%, 01/01/37(f)(g) | | | 645 | | | | 6,773 | |
New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23 | | | 1,090 | | | | 1,173,919 | |
New Jersey EDA, RB, AMT: | | | | | | | | |
Continental Airlines, Inc. Project, 5.25%, 09/15/29 | | | 145 | | | | 158,167 | |
Goethals Bridge Replacement Project, Private Activity Bond, 5.38%, 01/01/43 | | | 500 | | | | 551,990 | |
New Jersey EDA, Refunding RB, Series BBB, 5.50%, 06/15/31 | | | 775 | | | | 890,173 | |
New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31 | | | 705 | | | | 786,590 | |
New Jersey State Turnpike Authority, RB, Series A, 5.00%, 01/01/43 | | | 605 | | | | 656,407 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/28 | | | 500 | | | | 576,100 | |
Transportation Program, Series AA, 5.00%, 06/15/45 | | | 415 | | | | 443,934 | |
Transportation System, Series A, 5.50%, 06/15/41 | | | 575 | | | | 602,824 | |
Transportation System, Series B, 5.25%, 06/15/36 | | | 790 | | | | 824,381 | |
Rutgers - The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/43 | | | 165 | | | | 182,507 | |
Tobacco Settlement Financing Corp., Refunding RB, Series A: | | | | | | | | |
5.00%, 06/01/35 | | | 450 | | | | 516,361 | |
5.00%, 06/01/46 | | | 1,065 | | | | 1,162,341 | |
Tobacco Settlement Financing Corp. New Jersey, Refunding RB,Sub-Series B, 5.00%, 06/01/46 | | | 1,755 | | | | 1,830,395 | |
| | | | | | | | |
| | | | | | | 11,705,294 | |
|
| New York — 7.1% | |
City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Fiscal 2012,Sub-Series E-1, 5.00%, 02/01/42 | | | 770 | | | | 828,790 | |
Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, The Charter School for Applied Technologies Project, Series A, 5.00%, 06/01/35 | | | 500 | | | | 542,925 | |
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41(b) | | | 600 | | | | 614,628 | |
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44 | | | 276 | | | | 299,821 | |
Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38 | | | 750 | | | | 850,463 | |
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 | | | 385 | | | | 397,239 | |
3 World Trade Center Project, Class 1, 5.00%, 11/15/44(b) | | | 1,365 | | | | 1,468,644 | |
3 World Trade Center Project, Class 2, 5.15%, 11/15/34(b) | | | 105 | | | | 115,736 | |
3 World Trade Center Project, Class 2, 5.38%, 11/15/40(b) | | | 265 | | | | 291,034 | |
New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 01/01/50 | | | 1,000 | | | | 1,091,990 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| New York (continued) | |
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8: | | | | | | | | |
6.00%, 12/01/36 | | $ | 410 | | | $ | 434,104 | |
6.00%, 12/01/42 | | | 395 | | | | 418,036 | |
| | | | | | | | |
| | | | | | | 7,353,410 | |
|
| North Carolina — 0.2% | |
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21(a) | | | 185 | | | | 204,691 | |
| | | | | | | | |
|
| Ohio — 1.7% | |
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term,Series A-2, 5.88%, 06/01/47 | | | 1,045 | | | | 990,137 | |
County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40 | | | 210 | | | | 227,472 | |
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.00%, 05/01/39 | | | 575 | | | | 576,553 | |
| | | | | | | | |
| | | | | | | 1,794,162 | |
|
| Oklahoma — 1.1% | |
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48 | | | 390 | | | | 442,537 | |
Tulsa County Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/45 | | | 585 | | | | 650,028 | |
| | | | | | | | |
| | | | | | | 1,092,565 | |
|
| Oregon — 0.9% | |
County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38(c) | | | 395 | | | | 188,000 | |
State of Oregon Facilities Authority, RB, Student Housing,CHF-Ashland, Southern Oregon University Project (AGM), 5.00%, 07/01/44 | | | 715 | | | | 768,268 | |
| | | | | | | | |
| | | | | | | 956,268 | |
|
| Pennsylvania — 2.7% | |
Allentown Neighborhood Improvement Zone Development Authority, RB, Subordinate, City Center Project(b): | | | | | | | | |
5.00%, 05/01/28 | | | 100 | | | | 106,328 | |
5.13%, 05/01/32 | | | 100 | | | | 105,187 | |
5.38%, 05/01/42 | | | 145 | | | | 152,985 | |
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42 | | | 200 | | | | 215,102 | |
Pennsylvania Economic Development Financing Authority, RB: | | | | | | | | |
AMT, 5.00%, 06/30/42 | | | 650 | | | | 712,140 | |
Aqua Pennsylvania, Inc. Project, Series B, 5.00%, 11/15/40 | | | 600 | | | | 609,390 | |
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44 | | | 480 | | | | 504,341 | |
Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44 | | | 345 | | | | 384,320 | |
| | | | | | | | |
| | | | | | | 2,789,793 | |
|
| Puerto Rico — 3.2% | |
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43 | | | 395 | | | | 399,333 | |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Senior Lien, Series A: | | | | | | | | |
5.00%, 07/01/33 | | | 830 | | | | 816,513 | |
5.13%, 07/01/37 | | | 240 | | | | 236,100 | |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A: | | | | | | | | |
6.00%, 07/01/38 | | | 245 | | | | 245,306 | |
6.00%, 07/01/44 | | | 440 | | | | 440,550 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 39 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Strategic Municipal Trust (BSD) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Puerto Rico (continued) | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured,Series A-1: | | | | | | | | |
4.50%, 07/01/34 | | $ | 9 | | | $ | 9,130 | |
4.75%, 07/01/53 | | | 366 | | | | 349,567 | |
5.00%, 07/01/58 | | | 799 | | | | 787,462 | |
| | | | | | | | |
| | | | | | | 3,283,961 | |
|
| Rhode Island — 2.8% | |
Rhode Island Student Loan Authority, Refunding RB, Senior-Series A, AMT, 3.50%, 12/01/34 | | | 405 | | | | 419,102 | |
Tobacco Settlement Financing Corp., Refunding RB, Series B: | | | | | | | | |
4.50%, 06/01/45 | | | 830 | | | | 815,931 | |
5.00%, 06/01/50 | | | 1,580 | | | | 1,620,717 | |
| | | | | | | | |
| | | | | | | 2,855,750 | |
|
| South Carolina — 4.7% | |
State of South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/43 | | | 680 | | | | 774,636 | |
State of South Carolina Ports Authority, ARB: | | | | | | | | |
5.25%, 07/01/20(a) | | | 1,040 | | | | 1,083,451 | |
AMT, 5.25%, 07/01/55 | | | 405 | | | | 452,020 | |
State of South Carolina Public Service Authority, RB: | | | | | | | | |
Santee Cooper, Series A, 5.50%, 12/01/54 | | | 1,235 | | | | 1,371,443 | |
Series E, 5.50%, 12/01/53 | | | 500 | | | | 550,160 | |
State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55 | | | 540 | | | | 606,253 | |
| | | | | | | | |
| | | | | | | 4,837,963 | |
|
| Tennessee — 0.9% | |
City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45 | | | 440 | | | | 472,961 | |
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A: | | | | | | | | |
4.00%, 10/01/49 | | | 180 | | | | 185,220 | |
5.25%, 10/01/58 | | | 260 | | | | 299,070 | |
| | | | | | | | |
| | | | | | | 957,251 | |
|
| Texas — 10.6% | |
Central Texas Regional Mobility Authority, Refunding RB: | | | | | | | | |
Senior Lien, 6.25%, 01/01/21(a) | | | 680 | | | | 729,830 | |
Sub-Lien, 5.00%, 01/01/33 | | | 115 | | | | 124,908 | |
City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 07/01/29 | | | 135 | | | | 149,051 | |
City of Houston Texas Combined Utility System, Refunding RB, Combined 1st Lien, Series A (AGC)(a): | | | | | | | | |
6.00%, 05/15/19 | | | 830 | | | | 831,313 | |
Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 08/15/43 | | | 230 | | | | 257,648 | |
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 01/01/23(a) | | | 145 | | | | 172,182 | |
County of Harris Texas-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC) (AGM), 0.00%, 11/15/38(c) | | | 4,750 | | | | 1,989,585 | |
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 0.00%, 09/15/37(c) | | | 4,485 | | | | 2,142,754 | |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare(a): | | | | | | | | |
6.00%, 08/15/20 | | | 1,270 | | | | 1,339,812 | |
La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 08/15/19(a) | | | 500 | | | | 506,695 | |
North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 09/01/31(a)(c) | | | 640 | | | | 298,355 | |
North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49 | | | 565 | | | | 602,951 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Texas (continued) | |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien: | | | | | | | | |
Blueridge Transportation Group, AMT, 5.00%, 12/31/55 | | $ | 450 | | | $ | 488,651 | |
LBJ Infrastructure Group LLC, 7.00%, 06/30/40 | | | 500 | | | | 528,415 | |
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 | | | 275 | | | | 283,770 | |
Texas Transportation Commission, RB, First Tier Toll Revenue(c): | | | | | | | | |
0.00%, 08/01/40 | | | 500 | | | | 197,605 | |
0.00%, 08/01/42 | | | 855 | | | | 302,396 | |
| | | | | | | | |
| | | | | | | 10,945,921 | |
|
| Virginia — 2.2% | |
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A: | | | | | | | | |
5.00%, 03/01/26 | | | 165 | | | | 170,904 | |
5.13%, 03/01/31 | | | 320 | | | | 335,424 | |
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT: | | | | | | | | |
5.25%, 01/01/32 | | | 250 | | | | 267,710 | |
6.00%, 01/01/37 | | | 1,320 | | | | 1,456,263 | |
| | | | | | | | |
| | | | | | | 2,230,301 | |
|
| Washington — 1.0% | |
Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40 | | | 235 | | | | 259,623 | |
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45 | | | 715 | | | | 787,902 | |
| | | | | | | | |
| | | | | | | 1,047,525 | |
|
| Wisconsin — 0.5% | |
Public Finance Authority, Refunding RB, Wingate University, Series A, 5.25%, 10/01/48 | | | 425 | | | | 474,568 | |
| | | | | | | | |
|
| Wyoming — 0.9% | |
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, Remarketing, 5.25%, 07/15/26 | | | 975 | | | | 984,925 | |
| | | | | | | | |
| |
Total Municipal Bonds — 120.2%
(Cost — $116,030,271) | | | | 124,363,836 | |
| | | | | | | | |
|
Municipal Bonds Transferred to Tender Option Bond Trusts(h) | |
|
California — 8.1% | |
City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19(a) | | | 2,970 | | | | 3,022,945 | |
City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, Series B, AMT, 5.00%, 05/15/46 | | | 2,000 | | | | 2,267,830 | |
Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2, Series A, 5.00%, 10/01/43 | | | 2,160 | | | | 2,500,805 | |
San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(a) | | | 554 | | | | 558,756 | |
| | | | | | | | |
| | | | | | | 8,350,336 | |
|
| Colorado — 1.2% | |
County of Adams Colorado, COP, Refunding, 4.00%, 12/01/45 | | | 1,180 | | | | 1,237,271 | |
| | | | | | | | |
|
| District of Columbia — 0.5% | |
District of Columbia Housing Finance Agency, RB, M/F Housing,Series B-2 (FHA), 4.10%, 09/01/39 | | | 520 | | | | 542,305 | |
| | | | | | | | |
|
| Georgia — 1.0% | |
County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48 | | | 1,025 | | | | 1,085,404 | |
| | | | | | | | |
| | |
| 40 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Strategic Municipal Trust (BSD) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Idaho — 1.4% | |
Idaho State Building Authority, RB, State Office Campus Project, Series A, 4.00%, 09/01/48 | | $ | 1,330 | | | $ | 1,416,324 | |
| | | | | | | | |
|
| Illinois — 2.2% | |
State of Illinois Toll Highway Authority, RB, Series C, 5.00%, 01/01/38 | | | 1,997 | | | | 2,243,277 | |
| | | | | | | | |
|
| Iowa — 1.1% | |
Iowa Finance Authority, Refunding RB, UnityPoint Health, Series E, 4.00%, 08/15/46 | | | 1,125 | | | | 1,163,006 | |
| | | | | | | | |
|
| Massachusetts — 2.1% | |
Massachusetts Housing Finance Agency, Refunding RB, Series A, AMT, 4.50%, 12/01/47 | | | 1,350 | | | | 1,404,284 | |
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41 | | | 720 | | | | 768,219 | |
| | | | | | | | |
| | | | | | | 2,172,503 | |
|
| Michigan — 2.1% | |
Michigan State Housing Development Authority, RB, M/F Housing, Series A, 4.15%, 10/01/53 | | | 2,117 | | | | 2,191,389 | |
| | | | | | | | |
|
| New York — 9.1% | |
City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 11/01/38 | | | 1,460 | | | | 1,543,505 | |
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution,Series FF-2, 5.50%, 06/15/40 | | | 510 | | | | 512,295 | |
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(i): | | | | | | | | |
5.75%, 02/15/21(a) | | | 310 | | | | 331,254 | |
5.75%, 02/15/47 | | | 190 | | | | 203,777 | |
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43 | | | 3,375 | | | | 3,665,144 | |
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(i) | | | 2,030 | | | | 2,221,245 | |
Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55 | | | 810 | | | | 937,316 | |
| | | | | | | | |
| | | | | | | 9,414,536 | |
|
| North Carolina — 1.6% | |
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55 | | | 800 | | | | 909,012 | |
North Carolina Housing Finance Agency, RB, S/F Housing,Series 39-B (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 01/01/48 | | | 761 | | | | 788,442 | |
| | | | | | | | |
| | | | | | | 1,697,454 | |
|
| Pennsylvania — 4.1% | |
County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/38 | | | 1,034 | | | | 1,170,022 | |
Pennsylvania Turnpike Commission, RB,Sub-Series A, 5.50%, 12/01/42 | | | 1,379 | | | | 1,619,248 | |
Pennsylvania Turnpike Commission, Refunding RB, SubSeries B-2 (AGM), 5.00%, 06/01/35 | | | 1,280 | | | | 1,478,279 | |
| | | | | | | | |
| | | | | | | 4,267,549 | |
|
| Rhode Island — 1.6% | |
Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 09/15/47 | | | 1,532 | | | | 1,611,408 | |
| | | | | | | | |
|
| Texas — 5.1% | |
City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43 | | | 780 | | | | 856,272 | |
County of Harris Texas, RB, Toll Road, Senior Lien, Series A(i): | | | | | | | | |
5.00%, 08/15/19(a) | | | 1,214 | | | | 1,223,563 | |
5.00%, 08/15/38 | | | 928 | | | | 935,920 | |
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41 | | | 1,080 | | | | 1,154,639 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Texas (continued) | |
University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43 | | $ | 975 | | | $ | 1,062,451 | |
| | | | | | | | |
| | | | | | | 5,232,845 | |
|
| Utah — 1.1% | |
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19(a) | | | 1,155 | | | | 1,165,975 | |
| | | | | | | | |
|
| Virginia — 1.7% | |
Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A, 5.50%, 07/01/57(i) | | | 1,413 | | | | 1,707,484 | |
| | | | | | | | |
|
| West Virginia — 1.2% | |
Morgantown Utility Board, Inc., RB, Series B, 4.00%, 12/01/48(i) | | | 1,161 | | | | 1,222,443 | |
| | | | | | | | |
| |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 45.2%
(Cost — $44,950,036) | | | | 46,721,509 | |
| | | | | | | | |
| |
Total Long-Term Investments — 165.4%
(Cost — $160,980,307) | | | | 171,085,345 | |
| | | | | |
| |
Other Assets Less Liabilities — 2.0% | | | | 2,208,756 | |
| |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (25.9)% | | | | (26,964,565 | ) |
| |
VMTP Shares, at Liquidation Value — (41.5)% | | | | (42,900,000 | ) |
| | | | | | | | |
| |
Net Assets Applicable to Common Shares — 100.0% | | | $ | 103,429,536 | |
| | | | | | | | |
| (a) | U.S. Government securities held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (d) | 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. |
| (e) | Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end. |
| (f) | Non-income producing security. |
| (g) | Issuer filed for bankruptcy and/or is in default. |
| (h) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (i) | All or a portion of the 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 November 15, 2019 to February 15, 2031 is $4,592,889. See Note 4 of the Notes to Financial Statements for details. |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 41 | |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Strategic Municipal Trust (BSD) |
During the year ended April 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliated | | Shares Held at 04/30/18 | | | Net Activity | | | Shares Held at 04/30/19 | | | Value at 04/30/19 | | | Income | | | Net
Realized
Gain (Loss) (a) | | | Change in Unrealized Appreciation (Depreciation) | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | 2,080,792 | | | | (2,080,792 | ) | | | — | | | $ | — | | | $ | 4,974 | | | $ | 192 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (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 | | | 15 | | | | 06/19/19 | | | $ | 1,855 | | | $ | (8,651 | ) |
Long U.S. Treasury Bond | | | 48 | | | | 06/19/19 | | | | 7,079 | | | | (34,203 | ) |
5-Year U.S. Treasury Note | | | 6 | | | | 06/28/19 | | | | 694 | | | | 11 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (42,843 | ) |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments Categorized by Risk Exposure
As of year 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized appreciation on futures contracts(a) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 11 | | | $ | — | | | $ | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities — Derivative Financial Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on futures contracts(a) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 42,854 | | | $ | — | | | $ | 42,854 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). | |
For the year ended April 30, 2019, 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 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (231,114 | ) | | $ | — | | | $ | (231,114 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (57,286 | ) | | $ | — | | | $ | (57,286 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | |
Average notional value of contracts — short | | $ | 7,531,674 | |
For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
| | |
| 42 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2019 | | BlackRock Strategic Municipal Trust (BSD) |
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) | | $ | — | | | $ | 171,085,345 | | | $ | — | | | $ | 171,085,345 | |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments(b) | |
Assets: | |
Interest rate contracts | | $ | 11 | | | $ | — | | | $ | — | | | $ | 11 | |
Liabilities: | |
Interest rate contracts | | | (42,854 | ) | | | — | | | | — | | | | (42,854 | ) |
| | | | | | | | | | | | | | | | |
| | $ | (42,843 | ) | | $ | — | | | $ | — | | | $ | (42,843 | ) |
| | | | | | | | | | | | | | | | |
| | (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 Fund 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 | | $ | — | | | $ | (26,838,711 | ) | | $ | — | | | $ | (26,838,711 | ) |
VMTP Shares at Liquidation Value | | | — | | | | (42,900,000 | ) | | | — | | | | (42,900,000 | ) |
| | | | | | | | | | | | | | | | |
| | $ | — | | | $ | (69,738,711 | ) | | $ | — | | | $ | (69,738,711 | ) |
| | | | | | | | | | | | | | | | |
See notes to financial statements.
| | | | |
| SCHEDULES OF INVESTMENTS | | | 43 | |
Statements of Assets and Liabilities
April 30, 2019
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
| | | | |
ASSETS | | | | | | | | | | | | | | | | |
Investments at value — unaffiliated(a) | | $ | 443,217,140 | | | $ | 274,925,602 | | | $ | 995,578,890 | | | $ | 171,085,345 | |
Investments at value — affiliated(b) | | | 903,628 | | | | 393,594 | | | | 18,185,624 | | | | — | |
Cash | | | 113,922 | | | | — | | | | 192,219 | | | | 240,904 | |
Cash pledged for futures contracts | | | 484,050 | | | | 227,600 | | | | 814,800 | | | | 145,600 | |
Receivables: | | | | | | | | | | | | | | | | |
Investments sold | | | 145,000 | | | | 558,921 | | | | — | | | | 20,000 | |
Dividends — affiliated | | | 889 | | | | 817 | | | | 23,818 | | | | 117 | |
Interest — unaffiliated | | | 5,469,869 | | | | 3,973,282 | | | | 15,025,964 | | | | 2,439,415 | |
Prepaid expenses | | | 21,648 | | | | 19,610 | | | | 29,455 | | | | 20,420 | |
| | | | | | | | | | | | | | | | |
Total assets | | | 450,356,146 | | | | 280,099,426 | | | | 1,029,850,770 | | | | 173,951,801 | |
| | | | | | | | | | | | | | | | |
| | | | |
ACCRUED LIABILITIES | | | | | | | | | | | | | | | | |
Bank overdraft | | | — | | | | 485,140 | | | | — | | | | — | |
Payables: | | | | | | | | | | | | | | | | |
Investments purchased | | | — | | | | 860,000 | | | | — | | | | — | |
Administration fees | | | 54,880 | | | | — | | | | — | | | | — | |
Income dividend distributions — Common Shares | | | 979,594 | | | | 677,823 | | | | 2,622,633 | | | | 416,557 | |
Interest expense and fees | | | 263,888 | | | | 138,545 | | | | 606,912 | | | | 125,854 | |
Investment advisory fees | | | 128,000 | | | | 136,821 | | | | 502,718 | | | | 85,147 | |
Trustees’ and Officer’s fees | | | 67,816 | | | | 22,008 | | | | 240,184 | | | | 16,100 | |
Other accrued expenses | | | 161,327 | | | | 112,211 | | | | 219,755 | | | | 111,439 | |
Variation margin on futures contracts | | | 94,767 | | | | 44,360 | | | | 159,313 | | | | 28,457 | |
| | | | | | | | | | | | | | | | |
Total accrued liabilities | | | 1,750,272 | | | | 2,476,908 | | | | 4,351,515 | | | | 783,554 | |
| | | | | | | | | | | | | | | | |
| | | | |
OTHER LIABILITIES | | | | | | | | | | | | | | | | |
TOB Trust Certificates | | | 51,999,064 | | | | 34,594,635 | | | | 119,623,727 | | | | 26,838,711 | |
VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)(e) | | | — | | | | 75,596,766 | | | | — | | | | — | |
VMTP Shares, at liquidation value of $100,000 per share(c)(d)(e) | | | 125,900,000 | | | | — | | | | 270,800,000 | | | | 42,900,000 | |
| | | | | | | | | | | | | | | | |
Total other liabilities | | | 177,899,064 | | | | 110,191,401 | | | | 390,423,727 | | | | 69,738,711 | |
| | | | | | | | | | | | | | | | |
Total liabilities | | | 179,649,336 | | | | 112,668,309 | | | | 394,775,242 | | | | 70,522,265 | |
| | | | | | | | | | | | | | | | |
| | | | |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | | $ | 270,706,810 | | | $ | 167,431,117 | | | $ | 635,075,528 | | | $ | 103,429,536 | |
| | | | | | | | | | | | | | | | |
| | | | |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF | | | | | | | | | | | | | | | | |
Paid-in capital(e)(f)(g) | | $ | 238,727,657 | | | $ | 156,245,176 | | | $ | 590,887,916 | | | $ | 94,241,675 | |
Accumulated earnings | | | 31,979,153 | | | | 11,185,941 | | | | 44,187,612 | | | | 9,187,861 | |
| | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 270,706,810 | | | $ | 167,431,117 | | | $ | 635,075,528 | | | $ | 103,429,536 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net asset value, offering and redemption price per share | | $ | 15.75 | | | $ | 12.47 | | | $ | 14.17 | | | $ | 14.15 | |
| | | | | | | | | | | | | | | | |
| | | | |
(a) Investments at cost — unaffiliated | | $ | 410,307,831 | | | $ | 260,029,616 | | | $ | 937,183,906 | | | $ | 160,980,307 | |
(b) Investments at cost — affiliated | | $ | 903,628 | | | $ | 393,594 | | | $ | 18,187,353 | | | $ | — | |
(c) Preferred Shares outstanding | | | 1,259 | | | | 760 | | | | 2,708 | | | | 429 | |
(d) Preferred Shares authorized | | | 5,862 | | | | Unlimited | | | | Unlimited | | | | Unlimited | |
(e) Par value per Preferred Share and Common Share | | $ | 0.01 | | | $ | 0.001 | | | $ | 0.001 | | | $ | 0.001 | |
(f) CommonShares outstanding | | | 17,185,859 | | | | 13,422,247 | | | | 44,831,340 | | | | 7,308,025 | |
(g) Common Shares authorized | | | 199,994,138 | | | | Unlimited | | | | Unlimited | | | | Unlimited | |
See notes to financial statements.
| | |
| 44 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Statements of Operations
Year Ended April 30, 2019
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
|
INVESTMENT INCOME | |
Interest — unaffiliated | | $ | 18,792,177 | | | $ | 12,731,651 | | | $ | 46,163,907 | | | $ | 7,832,168 | |
Dividends — affiliated | | | 16,817 | | | | 9,088 | | | | 78,219 | | | | 4,974 | |
| | | | | | | | | | | | | | | | |
Total investment income | | | 18,808,994 | | | | 12,740,739 | | | | 46,242,126 | | | | 7,837,142 | |
| | | | | | | | | | | | | | | | |
|
EXPENSES | |
Investment advisory | | | 1,520,168 | | | | 1,638,948 | | | | 6,091,474 | | | | 1,020,978 | |
Administration | | | 651,501 | | | | — | | | | — | | | | — | |
Professional | | | 73,287 | | | | 66,361 | | | | 111,199 | | | | 54,534 | |
Accounting services | | | 67,253 | | | | 27,407 | | | | 82,195 | | | | 38,288 | |
Rating agency | | | 43,518 | | | | 28,376 | | | | 43,790 | | | | 43,362 | |
Transfer agent | | | 34,572 | | | | 21,805 | | | | 48,773 | | | | 20,488 | |
Trustees and Officer | | | 25,989 | | | | 15,880 | | | | 62,005 | | | | 10,245 | |
Custodian | | | 11,389 | | | | 9,338 | | | | 16,903 | | | | 5,842 | |
Printing | | | 9,793 | | | | 8,815 | | | | 13,561 | | | | 7,936 | |
Registration | | | 9,401 | | | | 9,401 | | | | 17,347 | | | | 9,406 | |
Remarketing fees on Preferred Shares | | | — | | | | 7,602 | | | | — | | | | — | |
Liquidity fees | | | — | | | | 7,738 | | | | — | | | | — | |
Miscellaneous | | | 25,904 | | | | 7,746 | | | | 20,379 | | | | 1,265 | |
| | | | | | | | | | | | | | | | |
Total expenses excluding interest expense, fees and amortization of offering costs | | | 2,472,775 | | | | 1,849,417 | | | | 6,507,626 | | | | 1,212,344 | |
Interest expense, fees and amortization of offering costs(a) | | | 4,160,987 | | | | 2,524,785 | | | | 9,411,986 | | | | 1,635,143 | |
| | | | | | | | | | | | | | | | |
Total expenses | | | 6,633,762 | | | | 4,374,202 | | | | 15,919,612 | | | | 2,847,487 | |
Less fees waived and/or reimbursed by the Manager | | | (1,140 | ) | | | (565 | ) | | | (46,199 | ) | | | (332 | ) |
| | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed | | | 6,632,622 | | | | 4,373,637 | | | | 15,873,413 | | | | 2,847,155 | |
| | | | | | | | | | | | | | | | |
Net investment income | | | 12,176,372 | | | | 8,367,102 | | | | 30,368,713 | | | | 4,989,987 | |
| | | | | | | | | | | | | | | | |
|
REALIZED AND UNREALIZED GAIN (LOSS) | |
Net realized gain (loss) from: | |
Investments — unaffiliated | | | (326,500 | ) | | | 338,754 | | | | (1,023,402 | ) | | | 283,389 | |
Investments — affiliated | | | 512 | | | | 379 | | | | 275 | | | | 155 | |
Futures contracts | | | (839,428 | ) | | | (381,449 | ) | | | (1,077,979 | ) | | | (231,114 | ) |
Capital gain distributions from investment companies — affiliated | | | 17 | | | | 5 | | | | 142 | | | | 37 | |
| | | | | | | | | | | | | | | | |
| | | (1,165,399 | ) | | | (42,311 | ) | | | (2,100,964 | ) | | | 52,467 | |
| | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | |
Investments — unaffiliated | | | 9,475,014 | | | | 2,921,673 | | | | 11,932,416 | | | | 1,455,668 | |
Investments — affiliated | | | — | | | | — | | | | (1,729 | ) | | | — | |
Futures contracts | | | (164,381 | ) | | | (80,389 | ) | | | (255,681 | ) | | | (57,286 | ) |
| | | | | | | | | | | | | | | | |
| | | 9,310,633 | | | | 2,841,284 | | | | 11,675,006 | | | | 1,398,382 | |
| | | | | | | | | | | | | | | | |
Net realized and unrealized gain | | | 8,145,234 | | | | 2,798,973 | | | | 9,574,042 | | | | 1,450,849 | |
| | | | | | | | | | | | | | | | |
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS | | $ | 20,321,606 | | | $ | 11,166,075 | | | $ | 39,942,755 | | | $ | 6,440,836 | |
| | | | | | | | | | | | | | | | |
| (a) | Related to TOB Trusts, VRDP Shares and/or VMTP Shares. |
See notes to financial statements.
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | | | | | |
| | | BKN | | | | | | BTA | |
| | | Year Ended April 30, | | | | | | Year Ended April 30, | |
| | | 2019 | | | 2018 | | | | | | 2019 | | | 2018 | |
| | | | | |
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | | | | | | | | | | | | | | | | | | | | |
| | | | | |
OPERATIONS | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 12,176,372 | | | $ | 12,540,448 | | | | | | | $ | 8,367,102 | | | $ | 8,740,663 | |
Net realized gain (loss) | | | (1,165,399 | ) | | | 652,261 | | | | | | | | (42,311 | ) | | | 2,033,381 | |
Net change in unrealized appreciation (depreciation) | | | 9,310,633 | | | | (275,170 | ) | | | | | | | 2,841,284 | | | | (1,943,520 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net increase in net assets applicable to Common Shareholders resulting from operations | | | 20,321,606 | | | | 12,917,539 | | | | | | | | 11,166,075 | | | | 8,830,524 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)(b) | | | | | | | | | | | | | | | | | | | | |
Decrease in net assets resulting from distributions to Common Shareholders | | | (11,812,459 | ) | | | (15,270,632 | ) | | | | | | | (8,521,852 | ) | | | (8,789,035 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS(b) | | | | | | | | | | | | | | | | | | | | |
Total increase (decrease) in net assets applicable to Common Shareholders | | | 8,509,147 | | | | (2,353,093 | ) | | | | | | | 2,644,223 | | | | 41,489 | |
Beginning of year | | | 262,197,663 | | | | 264,550,756 | | | | | | | | 164,786,894 | | | | 164,745,405 | |
| | | | | | | | | | | | | | | | | | | | |
End of year | | $ | 270,706,810 | | | $ | 262,197,663 | | | | | | | $ | 167,431,117 | | | $ | 164,786,894 | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (b) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 11 for this prior year information. |
See notes to financial statements.
| | |
| 46 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | BFK | | | | | | BSD | |
| | | Year Ended April 30, | | | | | | Year Ended April 30, | |
| | | 2019 | | | 2018 | | | | | | 2019 | | | 2018 | |
| | | | | |
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | | | | | | | | | | | | | | | | | | | | |
| | | | | |
OPERATIONS | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 30,368,713 | | | $ | 32,555,863 | | | | | | | $ | 4,989,987 | | | $ | 5,292,342 | |
Net realized gain (loss) | | | (2,100,964 | ) | | | 1,003,472 | | | | | | | | 52,467 | | | | 712,063 | |
Net change in unrealized appreciation (depreciation) | | | 11,675,006 | | | | (10,808,470 | ) | | | | | | | 1,398,382 | | | | (2,263,427 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net increase in net assets applicable to Common Shareholders resulting from operations | | | 39,942,755 | | | | 22,750,865 | | | | | | | | 6,440,836 | | | | 3,740,978 | |
| | | | | | | | | | | | | | | | | | | | |
| | | |
DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)(b) | | | | | | | | | | | | | |
Decrease in net assets resulting from distributions to Common Shareholders | | | (31,471,601 | ) | | | (34,410,142 | ) | | | | | | | (5,006,165 | ) | | | (5,596,859 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | |
CAPITAL SHARE TRANSACTIONS | | | | | | | | | | | | | |
Reinvestment of common distributions | | | — | | | | 216,622 | | | | | | | | — | | | | 23,478 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS(b) | | | | | | | | | | | | | | | | | | | | |
Total increase (decrease) in net assets applicable to Common Shareholders | | | 8,471,154 | | | | (11,442,655 | ) | | | | | | | 1,434,671 | | | | (1,832,403 | ) |
Beginning of year | | | 626,604,374 | | | | 638,047,029 | | | | | | | | 101,994,865 | | | | 103,827,268 | |
| | | | | | | | | | | | | | | | | | | | |
End of year | | $ | 635,075,528 | | | $ | 626,604,374 | | | | | | | $ | 103,429,536 | | | $ | 101,994,865 | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (b) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 11 for this prior year information. |
See notes to financial statements.
Statements of Cash Flows
Year Ended April 30, 2019
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
| | | | |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | | | | | | | | | | | | | | | | |
Net increase in net assets resulting from operations | | $ | 20,321,606 | | | $ | 11,166,075 | | | $ | 39,942,755 | | | $ | 6,440,836 | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | | | | | | | | | | | | | | | | |
Proceeds from sales of long-term investments and principal paydowns | | | 124,173,264 | | | | 89,625,423 | | | | 251,844,615 | | | | 51,013,896 | |
Purchases of long-term investments | | | (132,107,816 | ) | | | (90,199,757 | ) | | | (210,028,197 | ) | | | (51,979,473 | ) |
Net proceeds from sales (purchases) of short-term securities | | | (903,117 | ) | | | 1,981,179 | | | | (13,553,750 | ) | | | 2,080,947 | |
Amortization of premium and accretion of discount on investments and other fees | | | (1,277,327 | ) | | | 453,062 | | | | 1,931,013 | | | | 14,647 | |
Net realized (gain) loss on investments | | | 325,988 | | | | (339,133 | ) | | | 1,023,127 | | | | (283,544 | ) |
Net unrealized (appreciation) on investments | | | (9,475,014 | ) | | | (2,921,673 | ) | | | (11,930,687 | ) | | | (1,455,668 | ) |
| | | | |
(Increase) Decrease in Assets: | | | | | | | | | | | | | | | | |
Receivables: | | | | | | | | | | | | | | | | |
Dividends — affiliated | | | 150 | | | | 688 | | | | (20,057 | ) | | | 1,012 | |
Interest — unaffiliated | | | (222,479 | ) | | | (180,197 | ) | | | 793,099 | | | | (563 | ) |
Prepaid expenses | | | 756 | | | | 15 | | | | 4,056 | | | | (563 | ) |
Other assets | | | 1,598 | | | | 591 | | | | 1,739 | | | | 446 | |
| | | | |
Increase (Decrease) in Liabilities: | | | | | | | | | | | | | | | | |
Payables: | | | | | | | | | | | | | | | | |
Administration fees | | | 2,248 | | | | — | | | | — | | | | — | |
Investment advisory fees | | | 5,250 | | | | 866 | | | | 6,349 | | | | (351 | ) |
Interest expense and fees | | | 105,167 | | | | 20,060 | | | | 105,819 | | | | 14,745 | |
Directors’ and Officer’s fees | | | 2,127 | | | | 699 | | | | (4,236 | ) | | | 560 | |
Variation margin on futures contracts | | | 26,236 | | | | 19,797 | | | | 66,469 | | | | 13,019 | |
Other accrued expenses | | | 21,030 | | | | 2,545 | | | | 2,395 | | | | 2,077 | |
| | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | | 999,667 | | | | 9,630,240 | | | | 60,184,509 | | | | 5,862,023 | |
| | | | | | | | | | | | | | | | |
| | | | |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | | | | | | | | | | | | | | | | |
Proceeds from TOB Trust Certificates | | | 24,378,146 | | | | 9,345,854 | | | | 31,276,029 | | | | 5,369,268 | |
Repayments of TOB Trust Certificates | | | (10,941,974 | ) | | | (10,775,896 | ) | | | (59,395,603 | ) | | | (5,908,865 | ) |
Proceeds from Loan for TOB Trust Certificates | | | 2,181,285 | | | | 3,752,535 | | | | 1,447,215 | | | | 230,373 | |
Repayments of Loan for TOB Trust Certificates | | | (2,181,285 | ) | | | (3,752,535 | ) | | | (1,447,215 | ) | | | (230,373 | ) |
Cash dividends paid to Common Shareholders | | | (11,812,459 | ) | | | (8,575,541 | ) | | | (31,471,601 | ) | | | (5,006,165 | ) |
Increase (decrease) in bank overdraft | | | (2,300,458 | ) | | | 485,140 | | | | — | | | | — | |
Amortization of deferred offering costs | | | — | | | | 15,203 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net cash (used for) financing activities | | | (676,745 | ) | | | (9,505,240 | ) | | | (59,591,175 | ) | | | (5,545,762 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
CASH | | | | | | | | | | | | | | | | |
Net increase in restricted and unrestricted cash | | | 322,922 | | | | 125,000 | | | | 593,334 | | | | 316,261 | |
Restricted and unrestricted cash at beginning of year | | | 275,050 | | | | 102,600 | | | | 413,685 | | | | 70,243 | |
| | | | | | | | | | | | | | | | |
Restricted and unrestricted cash at end of year | | $ | 597,972 | | | $ | 227,600 | | | $ | 1,007,019 | | | $ | 386,504 | |
| | | | | | | | | | | | | | | | |
| | | | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | | | | | | | | | | | | | | | | |
Cash paid during the year for interest expense | | $ | 4,055,820 | | | $ | 2,489,522 | | | $ | 9,306,167 | | | $ | 1,620,398 | |
| | | | | | | | | | | | | | | | |
| | | | |
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF YEAR TO THE STATEMENTS OF ASSETS AND LIABILITIES | | | | | | | | | | | | | | | | |
Cash | | | 113,922 | | | | — | | | | 192,219 | | | | 240,904 | |
Cash pledged: | | | | | | | | | | | | | | | | |
Futures contracts | | | 484,050 | | | | 227,600 | | | | 814,800 | | | | 145,600 | |
| | | | | | | | | | | | | | | | |
| | $ | 597,972 | | | $ | 227,600 | | | $ | 1,007,019 | | | $ | 386,504 | |
| | | | | | | | | | | | | | | | |
| | | | |
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR TO THE STATEMENTS OF ASSETS AND LIABILITIES | | | | | | | | | | | | | | | | |
Cash | | | — | | | | — | | | | 22,885 | | | | 3,643 | |
Cash pledged: | | | | | | | | | | | | | | | | |
Futures contracts | | | 275,050 | | | | 102,600 | | | | 390,800 | | | | 66,600 | |
| | | | | | | | | | | | | | | | |
| | $ | 275,050 | | | $ | 102,600 | | | $ | 413,685 | | | $ | 70,243 | |
| | | | | | | | | | | | | | | | |
See notes to financial statements.
| | |
| 48 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | |
| | | BKN | |
| |
| | | Year Ended April 30, | |
| | | 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | |
| | | | | | |
Net asset value, beginning of year | | $ | 15.26 | | | $ | 15.39 | | | $ | 16.83 | | | $ | 16.09 | | | $ | 15.34 | |
| | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.71 | | | | 0.73 | | | | 0.79 | | | | 0.88 | | | | 0.90 | |
Net realized and unrealized gain (loss) | | | 0.46 | | | | 0.02 | | | | (1.12 | ) | | | 0.77 | | | | 0.80 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | 1.17 | | | | 0.75 | | | | (0.33 | ) | | | 1.65 | | | | 1.70 | |
| | | | | | | | | | | | | | | | | | | | |
|
Distributions to Common Shareholders(b) | |
From net investment income | | | (0.68 | ) | | | (0.73 | ) | | | (0.85 | ) | | | (0.91 | ) | | | (0.95 | ) |
From net realized gain | | | (0.00 | )(c) | | | (0.15 | ) | | | (0.26 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total distributions to Common Shareholders | | | (0.68 | ) | | | (0.88 | ) | | | (1.11 | ) | | | (0.91 | ) | | | (0.95 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of year | | $ | 15.75 | | | $ | 15.26 | | | $ | 15.39 | | | $ | 16.83 | | | $ | 16.09 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Market price, end of year | | $ | 14.31 | | | $ | 13.57 | | | $ | 14.59 | | | $ | 16.94 | | | $ | 15.60 | |
| | | | | | | | | | | | | | | | | | | | |
|
Total Return Applicable to Common Shareholders(d) | |
Based on net asset value | | | 8.45 | % | | | 5.34 | % | | | (1.84 | )% | | | 10.92 | % | | | 11.43 | % |
| | | | | | | | | | | | | | | | | | | | |
Based on market price | | | 10.81 | % | | | (1.20 | )% | | | (7.55 | )% | | | 15.15 | % | | | 11.52 | % |
| | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets Applicable to Common Shareholders | |
Total expenses | | | 2.53 | % | | | 2.12 | % | | | 1.84 | % | | | 1.46 | % | | | 1.46 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 2.53 | % | | | 2.11 | % | | | 1.84 | % | | | 1.46 | % | | | 1.45 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(e) | | | 0.94 | % | | | 0.90 | % | | | 0.90 | % | | | 0.89 | % | | | 0.90 | % |
| | | | | | | | | | | | | | | | | | | | |
Net investment income to Common Shareholders | | | 4.64 | % | | | 4.64 | % | | | 4.87 | % | | | 5.48 | % | | | 5.61 | % |
| | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets applicable to Common Shareholders, end of year (000) | | $ | 270,707 | | | $ | 262,198 | | | $ | 264,551 | | | $ | 289,003 | | | $ | 276,308 | |
| | | | | | | | | | | | | | | | | | | | |
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) | | $ | 125,900 | | | $ | 125,900 | | | $ | 125,900 | | | $ | 125,900 | | | $ | 125,900 | |
| | | | | | | | | | | | | | | | | | | | |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year | | $ | 315,017 | | | $ | 308,259 | | | $ | 310,128 | | | $ | 329,549 | | | $ | 319,467 | |
| | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of year (000) | | $ | 51,999 | | | $ | 41,043 | | | $ | 30,783 | | | $ | 31,286 | | | $ | 28,685 | |
| | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 29 | % | | | 31 | % | | | 36 | % | | | 28 | % | | | 37 | % |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average Common Shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Amount is greater than $(0.005) per share. |
| (d) | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
| (e) | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | |
| | | BTA | |
| |
| | | Year Ended April 30, | |
| | | 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | |
| | | | | | |
Net asset value, beginning of year | | $ | 12.28 | | | $ | 12.27 | | | $ | 12.89 | | | $ | 12.51 | | | $ | 12.02 | |
| | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.62 | | | | 0.65 | | | | 0.67 | | | | 0.68 | | | | 0.69 | |
Net realized and unrealized gain (loss) | | | 0.20 | | | | 0.01 | | | | (0.63 | ) | | | 0.40 | | | | 0.52 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | 0.82 | | | | 0.66 | | | | 0.04 | | | | 1.08 | | | | 1.21 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions to Common Shareholders from net investment income(b) | | | (0.63 | ) | | | (0.65 | ) | | | (0.66 | ) | | | (0.70 | ) | | | (0.72 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of year | | $ | 12.47 | | | $ | 12.28 | | | $ | 12.27 | | | $ | 12.89 | | | $ | 12.51 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Market price, end of year | | $ | 11.88 | | | $ | 11.20 | | | $ | 11.66 | | | $ | 12.28 | | | $ | 11.41 | |
| | | | | | | | | | | | | | | | | | | | |
|
Total Return Applicable to Common Shareholders(c) | |
Based on net asset value | | | 7.34 | % | | | 5.76 | % | | | 0.53 | % | | | 9.51 | % | | | 10.86 | % |
| | | | | | | | | | | | | | | | | | | | |
Based on market price | | | 12.12 | % | | | 1.50 | % | | | 0.28 | % | | | 14.39 | % | | | 7.65 | % |
| | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets Applicable to Common Shareholders | |
Total expenses(d) | | | 2.67 | %(e) | | | 2.33 | %(e) | | | 2.00 | %(e) | | | 1.59 | % | | | 1.47 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly(d) | | | 2.67 | %(e) | | | 2.33 | %(e) | | | 2.00 | %(e) | | | 1.59 | % | | | 1.47 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(d) | | | 1.13 | %(e) | | | 1.14 | %(e) | | | 1.13 | %(e) | | | 1.11 | % | | | 1.11 | % |
| | | | | | | | | | | | | | | | | | | | |
Net investment income to Common Shareholders | | | 5.11 | % | | | 5.21 | % | | | 5.32 | % | | | 5.45 | % | | | 5.52 | % |
| | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets applicable to Common Shareholders, end of year (000) | | $ | 167,431 | | | $ | 164,787 | | | $ | 164,745 | | | $ | 173,050 | | | $ | 167,933 | |
| | | | | | | | | | | | | | | | | | | | |
VRDP Shares outstanding at $100,000 liquidation value, end of year (000) | | $ | 76,000 | | | $ | 76,000 | | | $ | 76,000 | | | $ | 76,000 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year | | $ | 320,304 | | | $ | 316,825 | | | $ | 316,770 | | | $ | 327,697 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of year (000) | | $ | 34,595 | | | $ | 36,025 | | | $ | 32,093 | | | $ | 25,970 | | | $ | 84,867 | |
| | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 31 | % | | | 44 | % | | | 43 | % | | | 29 | % | | | 8 | % |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average Common Shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
| (d) | Interest expense, fees and amortization of offering costs related to TOBs and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details. |
| (e) | The total expense ratio after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended April 30, | | | | | | | | | | | | | |
| | | 2019 | | | | | | 2018 | | | | | | 2017 | | | | | | | | | | | | | |
| | | 1.12 | % | | | | | | | 1.47 | % | | | | | | | 1.52 | % | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| 50 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | |
| | | BFK | |
| |
| | | Year Ended April 30, | |
| | | 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | |
| | | | | | |
Net asset value, beginning of year | | $ | 13.98 | | | $ | 14.24 | | | $ | 15.20 | | | $ | 14.91 | | | $ | 14.27 | |
| | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.68 | | | | 0.73 | | | | 0.81 | | | | 0.87 | | | | 0.88 | |
Net realized and unrealized gain (loss) | | | 0.21 | | | | (0.22 | ) | | | (0.92 | ) | | | 0.32 | | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | 0.89 | | | | 0.51 | | | | (0.11 | ) | | | 1.19 | | | | 1.55 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions to Common Shareholders from net investment income(b) | | | (0.70 | ) | | | (0.77 | ) | | | (0.85 | ) | | | (0.90 | ) | | | (0.91 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of year | | $ | 14.17 | | | $ | 13.98 | | | $ | 14.24 | | | $ | 15.20 | | | $ | 14.91 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Market price, end of year | | $ | 13.79 | | | $ | 12.78 | | | $ | 14.00 | | | $ | 15.44 | | | $ | 14.32 | |
| | | | | | | | | | | | | | | | | | | | |
|
Total Return Applicable to Common Shareholders(c) | |
Based on net asset value | | | 6.98 | % | | | 3.74 | % | | | (0.78 | )% | | | 8.57 | % | | | 11.43 | % |
| | | | | | | | | | | | | | | | | | | | |
Based on market price | | | 13.89 | % | | | (3.54 | )% | | | (3.96 | )% | | | 14.76 | % | | | 12.54 | % |
| | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets Applicable to Common Shareholders | |
Total expenses | | | 2.55 | % | | | 2.31 | % | | | 1.99 | % | | | 1.61 | % | | | 1.60 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 2.55 | % | | | 2.27 | % | | | 1.98 | % | | | 1.61 | % | | | 1.60 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(d) | | | 1.04 | % | | | 1.03 | % | | | 1.06 | % | | | 1.03 | % | | | 1.04 | % |
| | | | | | | | | | | | | | | | | | | | |
Net investment income to Common Shareholders | | | 4.87 | % | | | 5.06 | % | | | 5.45 | % | | | 5.85 | % | | | 5.91 | % |
| | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets applicable to Common Shareholders, end of year (000) | | $ | 635,076 | | | $ | 626,604 | | | $ | 638,047 | | | $ | 680,502 | | | $ | 667,063 | |
| | | | | | | | | | | | | | | | | | | | |
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) | | $ | 270,800 | | | $ | 270,800 | | | $ | 270,800 | | | $ | 270,800 | | | $ | 270,800 | |
| | | | | | | | | | | | | | | | | | | | |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year | | $ | 334,518 | | | $ | 331,390 | | | $ | 335,616 | | | $ | 351,293 | | | $ | 346,330 | |
| | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of year (000) | | $ | 119,624 | | | $ | 128,156 | | | $ | 146,562 | | | $ | 128,554 | | | $ | 122,688 | |
| | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 19 | % | | | 9 | % | | | 13 | % | | | 7 | % | | | 10 | % |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average Common Shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
| (d) | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details. |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | |
| | | BSD | |
| |
| | | Year Ended April 30, | |
| | | 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | |
| | | | | |
Net asset value, beginning of year | | $ | 13.96 | | | $ | 14.21 | | | $ | 15.04 | | | $ | 14.76 | | | $ | 14.11 | |
| | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.68 | | | | 0.72 | | | | 0.78 | | | | 0.82 | | | | 0.83 | |
Net realized and unrealized gain (loss) | | | 0.20 | | | | (0.20 | ) | | | (0.82 | ) | | | 0.31 | | | | 0.70 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | 0.88 | | | | 0.52 | | | | (0.04 | ) | | | 1.13 | | | | 1.53 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions to Common Shareholders from net investment income(b) | | | (0.69 | ) | | | (0.77 | ) | | | (0.79 | ) | | | (0.85 | ) | | | (0.88 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of year | | $ | 14.15 | | | $ | 13.96 | | | $ | 14.21 | | | $ | 15.04 | | | $ | 14.76 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Market price, end of year | | $ | 13.21 | | | $ | 12.65 | | | $ | 13.67 | | | $ | 15.02 | | | $ | 14.00 | |
| | | | | | | | | | | | | | | | | | | | |
|
Total Return Applicable to Common Shareholders(c) | |
Based on net asset value | | | 6.99 | % | | | 3.89 | % | | | (0.19 | )% | | | 8.32 | % | | | 11.50 | % |
| | | | | | | | | | | | | | | | | | | | |
Based on market price | | | 10.23 | % | | | (2.15 | )% | | | (3.85 | )% | | | 14.05 | % | | | 12.54 | % |
| | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets Applicable to Common Shareholders | |
Total expenses | | | 2.81 | % | | | 2.46 | % | | | 2.08 | % | | | 1.72 | % | | | 1.72 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 2.81 | % | | | 2.46 | % | | | 2.08 | % | | | 1.72 | % | | | 1.72 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(d) | | | 1.19 | % | | | 1.20 | % | | | 1.15 | % | | | 1.15 | % | | | 1.16 | % |
| | | | | | | | | | | | | | | | | | | | |
Net investment income to Common Shareholders | | | 4.92 | % | | | 5.05 | % | | | 5.28 | % | | | 5.61 | % | | | 5.67 | % |
| | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets applicable to Common Shareholders, end of year (000) | | $ | 103,430 | | | $ | 101,995 | | | $ | 103,827 | | | $ | 109,864 | | | $ | 107,849 | |
| | | | | | | | | | | | | | | | | | | | |
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) | | $ | 42,900 | | | $ | 42,900 | | | $ | 42,900 | | | $ | 42,900 | | | $ | 42,900 | |
| | | | | | | | | | | | | | | | | | | | |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year | | $ | 341,094 | | | $ | 337,750 | | | $ | 342,022 | | | $ | 356,093 | | | $ | 351,395 | |
| | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of year (000) | | $ | 26,839 | | | $ | 27,378 | | | $ | 24,984 | | | $ | 20,839 | | | $ | 19,309 | |
| | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 28 | % | | | 34 | % | | | 45 | % | | | 11 | % | | | 10 | % |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average Common Shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
| (d) | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details. |
| | |
| 52 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements
The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), asclosed-end management investment companies and are referred to herein collectively as the “Trusts”, or individually as a “Trust”:
| | | | | | |
| Trust Name | | Herein Referred To As | | Organized | | Diversification
Classification |
BlackRock Investment Quality Municipal Trust, Inc. | | BKN | | Maryland | | Diversified |
BlackRock Long-Term Municipal Advantage Trust | | BTA | | Delaware | | Non-diversified |
BlackRock Municipal Income Trust | | BFK | | Delaware | | Diversified |
BlackRock Strategic Municipal Trust | | BSD | | Delaware | | Diversified |
The Board of Directors or Trustees, as applicable, of the Trusts are collectively referred to throughout this report as the “Board of Trustees” or the “Board,” and the directors or trustees, as applicable, thereof are collectively referred to throughout this report as “Trustees”. The Trusts determine and make available for publication the net asset values (“NAVs”) of their Common Shares on a daily basis.
The Trusts, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex ofnon-index fixed-income mutual funds and all BlackRock-advisedclosed-end funds referred to as the BlackRock Fixed-Income Complex.
| 2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Trust is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition:For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed (the “trade dates”). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income andnon-cash dividend income are recorded on theex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities is recognized on an accrual basis.
Segregation and Collateralization:In cases where a Trust enters into certain investments (e.g., futures contracts) or certain borrowings (e.g., TOB Trust transactions) that would be treated as “senior securities” for 1940 Act purposes, a Trust may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowing to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Trusts may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.
Distributions: Distributions from net investment income are declared monthly and paid monthly. Distributions of capital gains are recorded on theex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Distributions to Preferred Shareholders are accrued and determined as described in Note 10.
Deferred Compensation Plan:Under the Deferred Compensation Plan (the “Plan”) approved by each Trust’s Board, the independent Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.
The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust, as applicable. Deferred compensation liabilities are included in the Trustees’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance with the Plan.
Recent Accounting Standards:In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance to the Trusts.
Indemnifications:In the normal course of business, a Trust enters into contracts that contain a variety of representations that provide general indemnification. A Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Trust, which cannot be predicted with any certainty.
Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 53 | |
Notes to Financial Statements (continued)
| 3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: The Trusts’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board of each Trust. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Trust’s assets and liabilities:
| | • | | Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. |
| | • | | Investments inopen-end U.S. mutual funds are valued at NAV each business day. |
| | • | | Futures contracts traded on exchanges are valued at their last sale price. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Trust might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.
Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:
| | • | | Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Trust has the ability to access |
| | • | | Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs) |
| | • | | Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors.
The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
| 4. | SECURITIES AND OTHER INVESTMENTS |
Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.
Forward Commitments and When-Issued Delayed Delivery Securities: Certain trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A trust may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a trust may be required to pay more at settlement than the security is worth. In addition, a trust is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a trust assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a trust’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.
| | |
| 54 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
Municipal Bonds Transferred to TOB Trusts: Certain trusts leverage their assets through the use of “TOB Trust” transactions. The trusts transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating trusts that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a trust provide the trust with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The trusts may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other trusts managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a trust has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the trusts ratably in proportion to their participation in the TOB Trust.
TOB Trusts are supported by a liquidity facility provided by a third party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.
The TOB Trust may be collapsed without the consent of a trust, upon the occurrence of a termination event, as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Trusts) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.
While a trust’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a trust to borrow money for purposes of making investments. Each trust’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a trust. A trust typically invests the cash received in additional municipal bonds.
Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a trust’s Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a trust’s payable to the holder of the TOB Trust Certificates as reported in the Statements of Assets and Liabilities as TOB Trust Certificates approximates its fair value.
Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a trust on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts tonon-bank sponsored TOB Trusts, the trusts incurrednon-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of deferred offering costs in the Statements of Operations. Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:
| | | | | | | | | | | | | | | | |
| | | Interest Expense | | | Liquidity Fees | | | Other Expenses | | | Total | |
BKN | | $ | 713,210 | | | $ | 198,052 | | | $ | 71,104 | | | $ | 982,366 | |
BTA | | | 560,734 | | | | 165,080 | | | | 47,974 | | | | 773,788 | |
BFK | | | 1,867,297 | | | | 516,371 | | | | 197,873 | | | | 2,581,541 | |
BSD | | | 399,093 | | | | 112,427 | | | | 40,980 | | | | 552,500 | |
For the year ended April 30, 2019, the following table is a summary of each trust’s TOB Trusts:
| | | | | | | | | | | | | | | | | | | | |
| | | Underlying
Municipal Bonds
Transferred to
TOB Trusts (a) | | | Liability for
TOB Trust
Certificates (b) | | | Range of
Interest Rates
on TOB Trust
Certificates at
Period End | | | Average
TOB Trust
Certificates
Outstanding | | | Daily Weighted
Average Rate
of Interest and
Other Expenses
on TOB Trusts | |
BKN | | $ | 87,304,414 | | | $ | 51,999,064 | | | | 2.32 — 2.45 | % | | $ | 46,081,908 | | | | 2.13 | % |
BTA | | | 58,950,056 | | | | 34,594,635 | | | | 2.26 — 2.48 | | | | 36,194,923 | | | | 2.13 | |
BFK | | | 200,225,084 | | | | 119,623,727 | | | | 2.26 — 2.48 | | | | 121,123,428 | | | | 2.13 | |
BSD | | | 46,721,509 | | | | 26,838,711 | | | | 2.26 — 2.48 | | | | 25,765,359 | | | | 2.14 | |
| | (a) | The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the trusts, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the trusts, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts. | |
| | (b) | TOB Trusts may be structured on anon-recourse or recourse basis. When a Trust invests in TOB Trusts on anon-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a trust invests in a TOB Trust on a recourse basis, a trust enters into a reimbursement agreement with the Liquidity Provider where a trust is required to reimburse the | |
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 55 | |
Notes to Financial Statements (continued)
| | Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a trust invests in a recourse TOB Trust, a trust will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a trust at April 30, 2019, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a trust at April 30, 2019. | |
| | | | | | | | | | | | | | | | |
| | | Loans
Outstanding
at Period End | | | Range of Interest Rates on Loans at Period End | | | Average
Loans
Outstanding | | | Daily Weighted Average Rate of Interest and Other Expenses on Loans | |
BKN | | $ | — | | | $ | — | | | $ | 42,429 | | | | 0.68 | % |
BTA | | | — | | | | — | | | | 25,148 | | | | 0.78 | |
BFK | | | — | | | | — | | | | 3,965 | | | | 0.78 | |
BSD | | | — | | | | — | | | | 631 | | | | 0.78 | |
| 5. | DERIVATIVE FINANCIAL INSTRUMENTS |
The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange orover-the-counter (“OTC”).
Futures Contracts:Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are agreements between the Trusts and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Trusts are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.
| 6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory:Each Trust entered into an Investment Advisory Agreement with the Manager, the Trusts’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”) to provide investment advisory and administrative services. The Manager is responsible for the management of each Trust’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Trust.
For such services, each Trust, except BTA, pays the Manager a monthly fee at an annual rate equal to the following percentages of the average weekly value of each Trust’s managed assets. For such services, BTA pays the Manager a monthly fee at an annual rate equal to a percentage of the average weekly value of the Trust’s net assets.
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Investment advisory fees | | | 0.35 | % | | | 1.00 | % | | | 0.60 | % | | | 0.60 | % |
For purposes of calculating these fees, “managed assets” mean the total assets of the Trust minus the sum of its accrued liabilities (other than the aggregate indebtedness constituting financial leverage).
For purposes of calculating this fee, “net assets” mean the total assets of BTA minus the sum of its accrued liabilities (which includes liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is understood that the liquidation preference of any outstanding preferred shares (other than accumulated dividends) and TOB Trusts is not considered a liability in determining the Trust’s net asset value.
Administration: BKN has an Administration Agreement with the Manager. The administration fee paid monthly to the Manager is computed at an annual rate of 0.15% of the Trust’s average weekly managed assets.
Waivers:The Manager voluntarily agreed to waive a portion of its investment advisory fees as a percentage of its average daily net assets for BFK at an annual rate of 0.024%. BFK waived $41,116 which is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. The voluntary waiver was discontinued effective July 1, 2018.
| | |
| 56 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
With respect to each Trust, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended April 30, 2019, the amounts waived were as follows:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Amounts waived | | $ | 1,140 | | | $ | 565 | | | $ | 5,083 | | | $ | 332 | |
The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Trust’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2019. The agreement can be renewed for annual periods thereafter, and may be terminated on 90 days’ notice, each subject to approval by a majority of the Trusts’ Independent Trustees. For the year ended April 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this agreement.
Trustees and Officers:Certain trustees and/or officers of the Trusts are trustees and/or officers of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.
Other Transactions:The Trusts may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the year ended April 30, 2019, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:
| | | | | | | | | | | | |
| | | Purchases | | | Sales | | | Net Realized
Gain (Loss) | |
BSD | | $ | — | | | $ | 27,597 | | | | $(2,052) | |
For the year ended April 30, 2019, purchases and sales of investments, excluding short-term securities, were as follows:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Purchases | | $ | 126,769,035 | | | $ | 84,684,598 | | | $ | 192,299,369 | | | $ | 47,571,177 | |
Sales | | | 124,103,200 | | | | 89,257,313 | | | | 242,845,399 | | | | 50,416,780 | |
It is each Trust’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Each Trust files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Trust’s U.S. federal tax returns generally remains open for each of the four years ended April 30, 2019. The statutes of limitations on each Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.
Management has analyzed tax laws and regulations and their application to the Trusts as of April 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Trusts’ financial statements.
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of period end, the following permanent differences, attributable to non-deductible expenses and the expiration of capital loss carryforwards, were reclassified to the following accounts:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Paid-in capital | | $ | — | | | $ | (966,441 | ) | | $ | — | | | $ | (2,978,126 | ) |
Accumulated earnings | | | — | | | | 966,441 | | | | — | | | | 2,978,126 | |
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 57 | |
Notes to Financial Statements (continued)
The tax character of distributions paid was as follows:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Tax-exempt income(a) | | | | | | | | | | | | | | | | |
4/30/2019 | | $ | 14,921,159 | | | $ | 10,243,262 | | | $ | 38,294,903 | | | $ | 6,079,943 | |
4/30/2018 | | | 14,936,934 | | | | 10,195,640 | | | | 39,892,104 | | | | 6,454,905 | |
Ordinary income(b) | | | | | | | | | | | | | | | | |
4/30/2019 | | | 5,659 | | | | 14,385 | | | | 7,143 | | | | 8,866 | |
4/30/2018 | | | 12,451 | | | | 12,371 | | | | 32,369 | | | | 16,133 | |
Long-term capital gains(c) | | | | | | | | | | | | | | | | |
4/30/2019 | | | 64,261 | | | | — | | | | — | | | | — | |
4/30/2018 | | | 3,014,135 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | |
4/30/2019 | | $ | 14,991,079 | | | $ | 10,257,647 | | | $ | 38,302,046 | | | $ | 6,088,809 | |
| | | | | | | | | | | | | | | | |
4/30/2018 | | $ | 17,963,520 | | | $ | 10,208,011 | | | $ | 39,924,473 | | | $ | 6,471,038 | |
| | | | | | | | | | | | | | | | |
| | (a) | The Trusts designate these amounts paid during the fiscal year ended April 30, 2019 as exempt-interest dividends. | |
| | (b) | Ordinary income consists primarily of taxable income recognized from market discount. Additionally, all ordinary income distributions are comprised of interest related dividends and are eligible for exemption from US withholding tax for nonresident aliens and foreign corporations. | |
| | (c) | The Trusts designate these amounts paid during the fiscal year ended April 30, 2019 as 20% rate long-term capital gain dividends. | |
As of April 30, 2019, the tax components of accumulated net earnings (losses) were as follows:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Undistributed tax-exempt income | | $ | 1,194,830 | | | $ | 392,381 | | | $ | 1,877,111 | | | $ | 111,022 | |
Undistributed ordinary income | | | 2,630 | | | | 1,320 | | | | 3,642 | | | | 1,380 | |
Non-expiring capital loss carryforwards(a) | | | — | | | | (4,154,204 | ) | | | (16,181,044 | ) | | | (968,448 | ) |
Net unrealized gains(b) | | | 32,681,778 | | | | 14,946,444 | | | | 58,487,903 | | | | 10,043,907 | |
Qualified late year loss(c) | | | (1,900,085 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | $ | 31,979,153 | | | $ | 11,185,941 | | | $ | 44,187,612 | | | $ | 9,187,861 | |
| | | | | | | | | | | | | | | | |
| | (a) | Amounts available to offset future realized capital gains. | |
| | (b) | The differences between book-basis and tax-basis net unrealized gains were attributable primarily to the tax deferral of losses on wash sales, amortization methods of premiums and discounts on fixed income securities, the accrual of income on securities in default, the realization for tax purposes of unrealized gains/losses on certain futures contracts, the treatment of residual interests in tender option bond trusts and the deferral of compensation to Trustees. | |
| | (c) | The Fund has elected to defer certain qualified late-year losses and recognize such losses in the next taxable year. | |
During the year ended April 30, 2019, BKN utilized $340,042 of its capital loss carryforwards
As of April 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S federal income tax purposes were as follows:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Tax cost. | | $ | 359,374,360 | | | $ | 225,755,059 | | | $ | 835,417,890 | | | $ | 134,187,999 | |
| | | | | | | | | | | | | | | | |
Gross unrealized appreciation | | $ | 34,439,480 | | | $ | 15,488,895 | | | $ | 62,983,294 | | | $ | 10,729,484 | |
Gross unrealized depreciation | | | (1,692,136 | ) | | | (519,393 | ) | | | (4,260,397 | ) | | | (670,849 | ) |
| | | | | | | | | | | | | | | | |
Net unrealized appreciation | | $ | 32,747,344 | | | $ | 14,969,502 | | | $ | 58,722,897 | | | $ | 10,058,635 | |
| | | | | | | | | | | | | | | | |
Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.
Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Trust’s ability to buy or sell bonds. As a result, a Trust may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Trust needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.
In the normal course of business, certain Trusts invest in securities or other instruments and may enter into certain transactions, and such activities subject each Trust to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations.
Each Trust may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Trust to reinvest in lower yielding securities. Each Trust may also be exposed to reinvestment risk, which is the risk that income from each Trust’s portfolio will decline if each Trust invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Trust portfolio’s current earnings rate.
| | |
| 58 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
The Trusts may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Trusts reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Trust.
A Trust structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.
Should short-term interest rates rise, the Trusts’ investments in the TOB Trusts may adversely affect the Trusts’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Trusts’ NAVs per share.
The U.S. Securities and Exchange Commission (“SEC”) and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Trusts’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.
TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Trusts, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.
Counterparty Credit Risk:The Trusts may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Trusts.
A derivative contract may suffer amark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Trusts since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Trust does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists inexchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Trusts.
Concentration Risk:BTA invests a substantial amount of its assets in issuers located in a single state or limited number of states. This may subject BTA to the risk that economic, political or social issues impacting a particular state or group of states could have an adverse and disproportionate impact on the income from, or the value or liquidity of, BTA’s portfolio. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.
Certain Trusts may invest in securities that are rated below investment grade quality (sometimes called “junk bonds”), which are predominantly speculative, have greater credit risk and generally are less liquid and have more volatile prices than higher quality securities.
Certain Trusts invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise.
| 10. | CAPITAL SHARE TRANSACTIONS |
BTA, BFK, and BSD are authorized to issue an unlimited numbers of shares, all of which were initially classified as Common Shares. BKN is authorized to issue 200 million shares, all of which were initially classified as Common Shares. The par value for each Trust’s Common Shares is $0.001, except for BKN, which is $0.01. The par value for each Trust’s Preferred Shares outstanding is $0.001, except for BKN, which is $0.01. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders.
Common Shares
For the years shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:
| | | | | | | | |
| Year Ended April 30, | | BFK | | | BSD | |
2019 | | | — | | | | — | |
2018 | | | 14,913 | | | | 1,618 | |
For the years ended April 30, 2019 and April 30, 2018, shares issued and outstanding remained constant for BKN and BTA.
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 59 | |
Notes to Financial Statements (continued)
On November 15, 2018, the Board authorized the Trusts to participate in an open market share repurchase program (the “Repurchase Program”). Under the Repurchase Program, each Trust may repurchase up to 5% of its outstanding common shares through November 30, 2019, based on common shares outstanding as of the close of business on November 30, 2018, subject to certain conditions. There is no assurance that the Trusts will purchase shares in any particular amounts. For the year ended April 30, 2019, the Funds did not repurchase any shares.
Preferred Shares
A Trust’s Preferred Shares rank prior to its Common Shares as to the payment of dividends by the Trust and distribution of assets upon dissolution or liquidation of the Trust. The 1940 Act prohibits the declaration of any dividend on Common Shares or the repurchase of Common Shares if the Trust fails to maintain asset coverage of at least 200% of the liquidation preference of the its outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, a Trust is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with its Preferred Shares or repurchasing such shares if the Trust fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares’ governing instruments or comply with the basic maintenance amount requirement of the ratings agencies rating the Preferred Shares.
Holders of Preferred Shares have voting rights equal to the voting rights of holders of Common Shares (one vote per share) and vote together with holders of Common Shares (one vote per share) as a single class on certain matters. Holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members of the Board, (ii) elect the full Board if dividends on the Preferred Shares are not paid for a period of two years and (iii) a separate class vote to amend the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred Shares, voting as a separate class, to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’ssub-classification as aclosed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.
VRDP Shares
BTA has issued SeriesW-7 VRDP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The VRDP Shares include a liquidity feature and may be subject to a special rate period. As of period end, the VRDP Shares outstanding were as follows:
| | | | | | | | | | | | | | | | |
| | | Issue Date | | | Shares
Issued | | | Aggregate
Principal | | | Maturity
Date | |
BTA | | | 10/29/15 | | | | 760 | | | $ | 76,000,000 | | | | 11/01/45 | |
Redemption Terms: BTA is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, BTA is required to begin to segregate liquid assets with the Trust’s custodian to fund the redemption. In addition, BTA is required to redeem certain of its outstanding VRDP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.
Subject to certain conditions, the VRDP Shares may also be redeemed, in whole or in part, at any time at the option of BTA. The redemption price per VRDP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends.
Liquidity Feature:VRDP Shares are subject to a fee agreement between BTA and the liquidity provider that requires a per annum liquidity fee and, in some cases, an upfront or initial commitment fee, payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations. The fee agreement between BTA and the liquidity provider is scheduled to expire on April 15, 2020 unless renewed or terminated in advance.
In the event a fee agreement is not renewed or is terminated in advance, and BTA does not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. In the event of such mandatory purchase, BTA is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, BTA is required to begin to segregate liquid assets with its custodian to fund the redemption. There is no assurance that BTA will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.
Remarketing:BTA may incur remarketing fees on the aggregate principal amount of all its VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statement of Operations. During any special rate period (as described below), BTA may incur nominal or no remarketing fees.
Ratings:As of period end, the VRDP Shares were assigned the following assigned ratings:
| | | | | | | | |
| | | Long-term
Moody’s
Rating | | | Long-term
Fitch Rating | |
BTA | | | N/A | | | | AAA | |
Special Rate Period: BTA has commenced a “special rate period” with respect to its VRDP Shares, during which the VRDP Shares will not be subject to any remarketing and the dividend rate will be based on a predetermined methodology. During a special rate period, short-term ratings on VRDP Shares are withdrawn. BTA’s special rate period has commenced on October 29, 2015 and has a current expiration date of April 15, 2020.
Prior to the expiration date, BTA and the VRDP Shares holder may mutually agree to extend the special rate period. If a special rate period is not extended, the VRDP Shares will revert to remarketable securities upon the termination of the special rate period and will be remarketed and available for purchase by qualified institutional investors.
| | |
| 60 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
During the special rate period: (i) the liquidity and fee agreements remain in effect, (ii) VRDP Shares remain subject to mandatory redemption by BTA on the maturity date, (iii) VRDP Shares will not be remarketed or subject to optional or mandatory tender events, (iv) BTA is required to comply with the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares as is required when the VRDP Shares are not in a special rate period, (v) BTA will pay dividends monthly based on the sum of an agreed upon reference rate and a percentage per annum based on the long-term ratings assigned to the VRDP Shares and (vi) BTA will pay nominal or no fees to the liquidity provider and remarketing agent.
If BTA redeems its VRDP Shares prior to end of the special rate period and the VRDP Shares have long-term ratings above A1/A+ and its equivalent by all ratings agencies then rating the VRDP Shares, then such redemption may be subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.
Dividends:Except during the Special Rate Period as described above, dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly based upon either short-term rating. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed.
For the year ended April 30, 2019, the annualized dividend rate for the VRDP Shares was 2.28%.
For the year ended April 30, 2019, VRDP Shares issued and outstanding of BTA remained constant.
VMTP Shares
BKN, BFK and BSD (for purposes of this section, a “VMTP Trust”) have issued SeriesW-7 VMTP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act. The VMTP Shares are subject to certain restrictions on transfer, and a VMTP Trust may also be required to register its VMTP Shares for sale under the Securities Act under certain circumstances. As of period end, the VMTP Shares outstanding and assigned long-term ratings were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Issue
Date | | | Shares
Issued | | | Aggregate
Principal | | | Term Redemption Date | | | Moody’s Rating | | | Fitch Rating | |
BKN | | | 12/16/11 | | | | 1,259 | | | | 125,900,000 | | | | 07/02/20 | | | | Aa1 | | | | AAA | |
BFK | | | 12/16/11 | | | | 2,708 | | | | 270,800,000 | | | | 07/02/20 | | | | Aa1 | | | | AAA | |
BSD | | | 12/16/11 | | | | 429 | | | | 42,900,000 | | | | 07/02/20 | | | | Aa1 | | | | AAA | |
Redemption Terms: A VMTP Trust is required to redeem its VMTP Shares on the term redemption date, unless earlier redeemed or repurchased or unless extended. There is no assurance that a term will be extended further or that any VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months prior to the term redemption date, a VMTP Trust is required to begin to segregate liquid assets with its custodian to fund the redemption. In addition, a VMTP Trust is required to redeem certain of its outstanding VMTP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.
Subject to certain conditions, VMTP Shares may be redeemed, in whole or in part, at any time at the option of the VMTP Trust. The redemption price per VMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends and applicable redemption premium. If a VMTP Trust redeems its VMTP Shares prior to the term redemption date and the VMTP Shares have long-term ratings above A1/A+ or its equivalent by the ratings agencies then rating the VMTP Shares, then such redemption may be subject to a prescribed redemption premium (up to 3% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining until the term redemption date, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.
Dividends: Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index or to a percentage of theone-month LIBOR rate, as set forth in the VMTP Shares governing instrument. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by the ratings agencies then rating the VMTP Shares.
The dividend rate on VMTP Shares is subject to astep-up spread if the VMTP Trust fails to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions orgross-up payments, and complying with certain asset coverage and leverage requirements.
For the year ended April 30, 2019, the average annualized dividend rates for the VMTP Shares were as follows.
| | | | | | | | | | | | |
| | | BKN | | | BFK | | | BSD | |
Rate | | | 2.52 | % | | | 2.52 | % | | | 2.52 | % |
For the year ended April 30, 2019, VMTP Shares issued and outstanding of each VMTP Trust remained constant.
Offering Costs:BKN, BTA, BFK and BSD incurred costs in connection with the issuance of VRDP and VMTP Shares, which were recorded as a direct deduction from the carrying value of the related debt liability and will be amortized over the life of the VRDP and VMTP Shares with the exception of any upfront fees paid by BTA to the liquidity provider which, if any, were amortized over the life of the liquidity agreement. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 61 | |
Notes to Financial Statements (continued)
Financial Reporting:The VRDP and VMTP Shares are considered debt of the issuer; therefore, the liquidation preference, which approximates fair value of the VRDP and VMTP Shares, is recorded as a liability in the Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP and VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP and VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP and VMTP Shares are generally classified astax-exempt income fortax-reporting purposes. Dividends and amortization of deferred offering costs on VRDP and VMTP Shares are included in interest expense, fees and amortization of offering costs in the Statements of Operations:
| | | | | | | | |
| | | Dividends Accrued | | | Deferred Offering Costs Amortization | |
BKN | | $ | 3,178,621 | | | $ | — | |
BTA | | | 1,735,794 | | | | 15,203 | |
BFK | | | 6,830,445 | | | | — | |
BSD | | | 1,082,643 | | | | — | |
| 11. | REGULATIONS-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532, Disclosure Update and Simplification. The Trusts have adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation on the Statements of Assets and Liabilities, Statements of Changes in Net Assets and Notes to the Financial Statements.
Prior year distribution information and undistributed (distributions in excess of) net investment income in the Statements of Changes in Net Assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.
Distributions for the year ended April 30, 2018 were classified as follows:
| | | | | | | | |
| | | Net Investment Income | | | Net Realized Gain | |
BKN | | $ | 12,625,711 | | | $ | 2,644,921 | |
BTA | | | 8,789,035 | | | | — | |
BFK | | | 34,410,142 | | | | — | |
BSD | | | 5,596,859 | | | | — | |
Undistributed net investment income as of April 30, 2018 is as follows:
| | | | |
| | | Undistributed Net Investment Income | |
BKN | | $ | 1,257,009 | |
BTA | | | 1,195,617 | |
BFK | | | 4,130,122 | |
BSD | | | 359,527 | |
Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through the date the financial statements were issued and the following items were noted:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Common Dividend Per
Share | | | | | | Preferred Shares (c) | |
| | | Paid (a) | | | Declared (b) | | | | | | Shares | | | Series | | | Declared | |
BKN | | $ | 0.0570 | | | $ | 0.0570 | | | | | | | | VMTP | | | | W-7 | | | $ | 281,108 | |
BTA | | | 0.0505 | | | | 0.0505 | | | | | | | | VRDP | | | | W-7 | | | | 159,767 | |
BFK | | | 0.0585 | | | | 0.0585 | | | | | | | | VMTP | | | | W-7 | | | | 604,639 | |
BSD | | | 0.0570 | | | | 0.0570 | | | | | | | | VMTP | | | | W-7 | | | | 95,787 | |
| | (a) | Net investment income dividend paid on June 3, 2019 to Common Shareholders of record on May 15, 2019. | |
| | (b) | Net investment income dividend declared on June 3, 2019 payable to Common Shareholders of record on June 14, 2019. | |
| | (c) | Dividends declared for period May 1, 2019 to May 31, 2019. | |
| | |
| 62 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of BlackRock Investment Quality Municipal Trust, Inc., BlackRock Long-Term Municipal Advantage Trust, BlackRock Municipal Income Trust, and BlackRock Strategic Municipal Trust:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of BlackRock Investment Quality Municipal Trust, Inc., BlackRock Long-Term Municipal Advantage Trust, BlackRock Municipal Income Trust, and BlackRock Strategic Municipal (the “Funds”), including the schedules of investments, as of April 30, 2019, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of April 30, 2019, and the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Boston, Massachusetts
June 21, 2019
We have served as the auditor of one or more BlackRock investment companies since 1992.
| | | | |
| REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | | 63 | |
Automatic Dividend Reinvestment Plan
Pursuant to each Trust’s Dividend Reinvestment Plan (the “Reinvestment Plan”), Common Shareholders are automatically enrolled to have all distributions of dividends and capital gains and other distributions reinvested by Computershare Trust Company, N.A. (the “Reinvestment Plan Agent”) in the respective Trust’s Common Shares pursuant to the Reinvestment Plan. Shareholders who do not participate in the Reinvestment Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street name or other nominee name, then to the nominee) by the Reinvestment Plan Agent, which serves as agent for the shareholders in administering the Reinvestment Plan.
After BKN, BTA, BFK and BSD declare a dividend or determine to make a capital gain or other distributions, the Reinvestment Plan Agent will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Trusts (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market or on the Trust’s primary exchange (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market premium”), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares acquired on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the dividend payment date, the dollar amount of the dividend will be divided by 95% of the market price on the dividend payment date. If, on the dividend payment date, the NAV is greater than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend amount in open-market purchases, or if the market discount shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any un-invested portion in newly issued shares. Investments in newly issued shares made in this manner would be made pursuant to the same process described above and the date of issue for such newly issued shares will substitute for the dividend payment date.
You may elect not to participate in the Reinvestment Plan and to receive all dividends in cash by contacting the Reinvestment Plan Agent, at the address set forth below.
Participation in the Reinvestment Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend record date. Additionally, the Reinvestment Plan Agent seeks to process notices received after the record date but prior to the payable date and such notices often will become effective by the payable date. Where late notices are not processed by the applicable payable date, such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.
The Reinvestment Plan Agent’s fees for the handling of the reinvestment of distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Reinvestment Plan Agent’s open-market purchases in connection with the reinvestment of all distributions. The automatic reinvestment of all distributions will not relieve participants of any U.S. federal, state or local income tax that may be payable on such dividends or distributions.
Each Trust reserves the right to amend or terminate the Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan; however, each Trust reserves the right to amend the Reinvestment Plan to include a service charge payable by the participants. Participants that request a sale of shares are subject to a $2.50 sales fee and a $0.15 per share fee. Per share fees include any applicable brokerage commissions the Reinvestment Plan Agent is required to pay. All correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at http://www.computershare.com/blackrock, or in writing to Computershare, P.O. Box 505000, Louisville, KY 40233, Telephone:(800) 699-1236. Overnight correspondence should be directed to the Reinvestment Plan Agent at Computershare, 462 South 4th Street, Suite 1600, Louisville, KY 40202.
| | |
| 64 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Trustee and Officer Information
| | | | | | | | |
| Independent Trustees (a) |
| | | | | |
Name
Year of Birth (b) | | Position(s) Held
(Length of Service) (c) | | Principal Occupation(s) During Past Five Years | | Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen (d) | | Public Company and Other
Investment Company
Directorships Held During
Past Five Years |
Richard E. Cavanagh 1946 | | Co-Chair of the Board and Trustee
(Since 2007) | | Director, The Guardian Life Insurance Company of America since 1998; Board Chair, Volunteers of America (anot-for-profit organization) from 2015 to 2018 (board member since 2009); Director, Arch Chemicals (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007 and Executive Dean from 1987 to 1995; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007. | | 88 RICs consisting of 112 Portfolios | | None |
Karen P. Robards 1950 | | Co-Chair of the Board and Trustee
(Since 2007) | | Principal of Robards & Company, LLC (consulting and private investing) since 1987;Co-founder and Director of the Cooke Center for Learning and Development (anot-for-profit organization) since 1987; Director of Enable Injections, LLC (medical devices) since 2019; Investment Banker at Morgan Stanley from 1976 to 1987. | | 88 RICs consisting of 112 Portfolios | | Greenhill & Co., Inc.; AtriCure, Inc. (medical devices) from 2000 until 2017 |
Michael J. Castellano 1946 | | Trustee
(Since 2011) | | Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious(non-profit) from 2009 to June 2015 and since 2017; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012; Director, CircleBlack Inc. (financial technology company) since 2015. | | 88 RICs consisting of 112 Portfolios | | None |
Cynthia L. Egan 1955 | | Trustee
(Since 2016) | | Advisor, U.S. Department of the Treasury from 2014 to 2015; President, Retirement Plan Services for T. Rowe Price Group, Inc. from 2007 to 2012; executive positions within Fidelity Investments from 1989 to 2007. | | 88 RICs consisting of 112 Portfolios | | Unum (insurance); The Hanover Insurance Group (insurance); Envestnet (investment platform) from 2013 until 2016 |
Frank J. Fabozzi 1948 | | Trustee
(Since 2007) | | Editor of The Journal of Portfolio Management since 1986; Professor of Finance, EDHEC Business School (France) since 2011; Visiting Professor, Princeton University for the 2013 to 2014 academic year and Spring 2017 semester; Professor in the Practice of Finance, Yale University School of Management from 1994 to 2011 and currently a Teaching Fellow in Yale’s Executive Programs; Board Member, BlackRock Equity-Liquidity Funds from 2014 to 2016; affiliated professor Karlsruhe Institute of Technology from 2008 to 2011. | | 88 RICs consisting of 112 Portfolios | | None |
Henry Gabbay 1947 | | Trustee
(Since 2019) | | Board Member, BlackRock Equity-Bond Board from 2007 to 2018; Board Member, BlackRock Equity-Liquidity and BlackRockClosed-End Fund Boards from 2007 through 2014; Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Allocation Target Shares (formerly, BlackRock Bond Allocation Target Shares) from 2005 to 2007 and Treasurer of certainclosed-end funds in the BlackRock fund complex from 1989 to 2006. | | 88 RICs consisting of 112 Portfolios | | None |
| | | | |
| TRUSTEEAND OFFICER INFORMATION | | | 65 | |
Trustee and Officer Information (continued)
| | | | | | | | |
| Independent Trustees (a)(continued) |
| | | | | |
Name
Year of Birth (b) | | Position(s) Held
(Length of Service) (c) | | Principal Occupation(s) During Past Five Years | | Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen (d) | | Public Company and Other
Investment Company
Directorships Held During
Past Five Years |
R. Glenn Hubbard 1958 | | Trustee
(Since 2007) | | Dean, Columbia Business School since 2004; Faculty member, Columbia Business School since 1988. | | 88 RICs consisting of 112 Portfolios | | ADP (data and information services); Metropolitan Life Insurance Company (insurance); KKR Financial Corporation (finance) from 2004 until 2014 |
W. Carl Kester 1951 | | Trustee
(Since 2007) | | George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981. | | 88 RICs consisting of 112 Portfolios | | None |
Catherine A. Lynch 1961 | | Trustee
(Since 2016) | | Chief Executive Officer, Chief Investment Officer and various other positions, National Railroad Retirement Investment Trust from 2003 to 2016; Associate Vice President for Treasury Management, The George Washington University from 1999 to 2003; Assistant Treasurer, Episcopal Church of America from 1995 to 1999. | | 88 RICs consisting of 112 Portfolios | | None |
|
| Interested Trustees (a)(d) |
| | | | | |
Name
Year of Birth (b) | | Position(s) Held
(Length of Service) (c) | | Principal Occupation(s) During Past Five Years | | Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen (d) | | Public Company and Other
Investment Company
Directorships Held During
Past Five Years |
Robert Fairbairn 1965 | | Trustee
(Since 2018) | | Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees;Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016. | | 126 RICs consisting of 295 Portfolios | | None |
John M. Perlowski 1964 | | Trustee
(Since 2014); President and Chief Executive Officer
(Since 2011) | | Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009. | | 126 RICs consisting of 295 Portfolios | | None |
(a) The address of each Trustee is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055. |
(b) Each Independent Trustee holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Trusts’by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Trustees who are “interested persons,” as defined in the Investment Company Act serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Trusts’by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Trustees on acase-by-case basis, as appropriate. |
(c) Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Certain Independent Trustees first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998. Mr. Gabbay became a member of the boards of theopen-end funds in the Fixed-Income Complex in 2007. |
(d) Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Trusts based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex. |
| | |
| 66 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Trustee and Officer Information (continued)
| | | | |
| Officers Who Are Not Trustees (a) |
| | | |
Name
Year of Birth (b) | | Position(s) Held
(Length of Service) | | Principal Occupation(s) During Past Five Years |
Jonathan Diorio 1980 | | Vice President
(Since 2015) | | Managing Director of BlackRock, Inc. since 2015; Director of BlackRock, Inc. from 2011 to 2015. |
Neal J. Andrews 1966 | | Chief Financial Officer
(Since 2007) | | Chief Financial Officer of the iShares® exchange traded funds since 2019; Managing Director of BlackRock, Inc. since 2006. |
Jay M. Fife 1970 | | Treasurer
(Since 2007) | | Managing Director of BlackRock, Inc. since 2007. |
Charles Park 1967 | | Chief Compliance Officer
(Since 2014) | | Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for theBFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012. |
Janey Ahn 1975 | | Secretary
(Since 2012) | | Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017. |
(a) The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055. |
(b) Officers of the Trusts serve at the pleasure of the Board. |
Effective January 1, 2019, Richard E. Cavanagh and Karen P. Robards were appointed as a Co-Chair of the Board. Prior to January 1, 2019, Mr. Cavanagh served as Chair of the Board and Ms. Robards served as Vice Chair of the Board.
Investment Adviser
BlackRock Advisors, LLC
Wilmington, DE 19809
Custodian and Accounting Agent
State Street Bank and Trust Company
Boston, MA 02111
Transfer Agent
Computershare Trust Company, N.A.
Canton, MA 02021
VRDP Liquidity Provider
Bank of America, N.A.
New York, NY 10036
VRDP Remarketing Agent
BofA Securities, Inc.
New York, NY 10036
VRDP Tender and Paying Agent and VMTP Redemption and Paying Agent
The Bank of New York Mellon
New York, NY 10286
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116
Legal Counsel
Willkie Farr & Gallagher LLP
New York, NY 10019
Address of the Trusts
100 Bellevue Parkway
Wilmington, DE 19809
| | | | |
| TRUSTEEAND OFFICER INFORMATION | | | 67 | |
Additional Information
Trust Certification
The Trusts are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Trusts filed with the SEC the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.
Dividend Policy
Each Trust’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of distributions, the Trusts may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the distributions paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed as accumulated earnings (loss) in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.
General Information
The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.
During the period, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.
In accordance with Section 23(c) of the Investment Company Act of 1940, each Trust may from time to time purchase shares of its common stock in the open market or in private transactions.
Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed athttp://www.blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.
Electronic Delivery
Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.
To enroll in electronic delivery:
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment advisers, banks or brokerages may offer this service.
Householding
The Trusts will mail only one copy of shareholder documents, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Trusts at (800) 882-0052.
Availability of Quarterly Schedule of Investments
The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Trusts’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 882-0052; (2) athttp://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) athttp://www.blackrock.com; or by calling (800) 882-0052; and (2) on the SEC’s website at http://www.sec.gov.
| | |
| 68 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Additional Information (continued)
Availability of Trust Updates
BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section ofhttp://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Trusts. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect thenon-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.
| | | | |
| ADDITIONAL INFORMATION | | | 69 | |
Glossary of Terms Used in this Report
| | |
| Portfolio Abbreviations |
| |
| AGC | | Assured Guarantee Corp. |
| |
| AGM | | Assured Guaranty Municipal Corp. |
| |
| AMBAC | | American Municipal Bond Assurance Corp. |
| |
| AMT | | Alternative Minimum Tax (subject to) |
| |
| ARB | | Airport Revenue Bonds |
| |
| BAM | | Build America Mutual Assurance Co. |
| |
| BARB | | Building Aid Revenue Bonds |
| |
| CAB | | Capital Appreciation Bonds |
| |
| COP | | Certificates of Participation |
| |
| EDA | | Economic Development Authority |
| |
| EDC | | Economic Development Corp. |
| |
| FHA | | Federal Housing Administration |
| |
| GARB | | General Airport Revenue Bonds |
| |
| GO | | General Obligation Bonds |
| |
| GTD | | Guaranteed |
| |
| HDA | | Housing Development Authority |
| |
| HFA | | Housing Finance Agency |
| |
| IDA | | Industrial Development Authority |
| |
| ISD | | Independent School District |
| |
| LRB | | Lease Revenue Bonds |
| |
| M/F | | Multi-Family |
| |
| NPFGC | | National Public Finance Guarantee Corp. |
| |
| PILOT | | Payment in Lieu of Taxes |
| |
| PSF-GTD | | Permanent School Fund Guaranteed |
| |
| RB | | Revenue Bonds |
| |
| S/F | | Single-Family |
| |
| SAN | | State Aid Notes |
| |
| SRF | | State Revolving Fund |
| | |
| 70 | | 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.
| | |
| CEMUNI5-4/19-AR | |  |
Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make othernon-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls1-800-882-0052, option 4.
Item 3 – Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:
Michael Castellano
Frank J. Fabozzi
Henry Gabbay
Catherine A. Lynch
Karen P. Robards
The registrant’s board of directors has determined that Karen P. Robards qualifies as an audit committee financial expert pursuant to Item 3(c)(4) of FormN-CSR.
Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and anon-profit organization.
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
Item 4 – Principal Accountant Fees and Services
The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:
| | | | | | | | | | | | | | | | |
| | | (a) Audit Fees | | (b) Audit-Related Fees1 | | (c) Tax Fees2 | | (d) All Other Fees |
| Entity Name | | Current
Fiscal Year
End | | Previous
Fiscal Year
End | | Current
Fiscal Year
End | | Previous
Fiscal Year
End | | Current
Fiscal Year
End | | Previous
Fiscal Year
End | | Current
Fiscal Year
End | | Previous
Fiscal Year
End |
| BlackRock Long-Term Municipal Advantage Trust | | $32,946 | | $32,946 | | $0 | | $0 | | $11,000 | | $11,000 | | $0 | | $0 |
2
The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the ‘Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including anysub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):
| | | | |
| | | Current Fiscal Year End | | Previous Fiscal Year End |
(b) Audit-Related Fees1 | | $0 | | $0 |
(c) Tax Fees2 | | $0 | | $0 |
(d) All Other Fees3 | | $2,050,000 | | $2,274,000 |
1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters,out-of-pocket expenses and internal control reviews not required by regulators.
2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.
3Non-audit fees of $2,050,000 and $2,274,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
(e)(1) Audit CommitteePre-Approval Policies and Procedures:
The Committee has adopted policies and procedures with regard to thepre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specificpre-approval by the Committee. The Committee also must approve othernon-audit services provided to the registrant and thosenon-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of thesenon-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specificcase-by-case basis (“generalpre-approval”). The term of any generalpre-approval is 12 months from the date of thepre-approval, unless the Committee provides for a different period. Tax or othernon-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemedpre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.
Any proposed services exceeding thepre-approved cost levels will require specificpre-approval by the Committee, as will any other services not subject to generalpre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to generalpre-approval at the next regularly scheduledin-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permittednon-audit services, including services exceedingpre-approved cost levels.
3
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule2-01 of RegulationS-X.
(f) Not Applicable
(g) The aggregatenon-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:
| | | | | | |
| | | Entity Name | | Current Fiscal
Year End | | Previous Fiscal
Year End |
| | | BlackRock Long-Term Municipal Advantage Trust | | $11,000 | | $11,000 |
Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored or advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:
| | |
Current Fiscal Year End | | Previous Fiscal
Year End |
$2,050,500 | | $2,274,000 |
These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
(h) The Committee has considered and determined that the provision ofnon-audit services that were rendered to the Investment Adviser, and the Affiliated Service Providers that were notpre-approved pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X is compatible with maintaining the principal accountant’s independence.
Item 5 – Audit Committee of Listed Registrants
| | (a) | The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)): |
Michael Castellano
Frank J. Fabozzi
Henry Gabbay
Catherine A. Lynch
Karen P. Robards
4
(b) Not Applicable
Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previousForm N-CSR filing.
Item 7 – Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies – The board of directors has delegated the voting of proxies for the Fund’s portfolio securities to the Investment Adviser pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or asub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or materialnon-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website athttp://www.sec.gov.
Item 8 – Portfolio Managers ofClosed-End Management Investment Companies
| | (a)(1) | As of the date of filing this Report: |
The registrant is managed by a team of investment professionals comprised of Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock, and Michael Perilli, Vice President at BlackRock. Each is a member of BlackRock’s municipaltax-exempt management group. Each is jointly responsible for theday-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and selection of its investments. Messrs. Jaeckel and Perilli have been members of the registrant’s portfolio management team since 2006 and 2016, respectively.
| | |
| Portfolio Manager | | Biography |
| Theodore R. Jaeckel, Jr. | | Managing Director of BlackRock since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2005 to 2006; Director of MLIM from 1997 to 2005. |
Michael Perilli | | Vice President of BlackRock since 2017; Associate of BlackRock from 2008 to 2016. |
5
| | (a)(2) | As of April 30, 2019: |
| | | | | | | | | | | | |
| | | (ii) Number of Other Accounts Managed and Assets by Account Type | | (iii) Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based |
(i) Name of Portfolio Manager | | Other Registered Investment Companies | | Other Pooled Investment Vehicles | | Other Accounts | | Other Registered Investment Companies | | Other Pooled Investment Vehicles | | Other Accounts |
Theodore R. Jaeckel, Jr. | | 33 | | 0 | | 0 | | 0 | | 0 | | 0 |
| | | $27.98 Billion | | $0 | | $0 | | $0 | | $0 | | $0 |
Michael Perilli | | 20 | | 0 | | 0 | | 0 | | 0 | | 0 |
| | | $5.13 Billion | | $0 | | $0 | | $0 | | $0 | | $0 |
| | (iv) | Potential Material Conflicts of Interest |
BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, Inc., its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, Inc. or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock, Inc.’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock, Inc. or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses materialnon-public information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. It should also be noted that a portfolio manager may be managing certain hedge fund and/or long only accounts, or may be part of a team managing certain hedge fund and/or long only accounts, subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. Currently, the portfolio managers of this fund are not entitled to receive a portion of incentive fees of other accounts.
6
As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock, Inc. has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.
| | (a)(3) | As of April 30, 2019: |
Portfolio Manager Compensation Overview
The discussion below describes the portfolio managers’ compensation as of April 30, 2019.
BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.
Base Compensation. Generally, portfolio managers receive base compensation based on their position with the firm.
Discretionary Incentive Compensation
Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on the performance of the Fund and other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income funds is measured on apre-tax and/orafter-tax basis over various time periods including1-,3- and5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are: a combination of market-based indices (e.g., Standard & Poor’s Municipal Bond Index), certain customized indices and certain fund industry peer groups.
Distribution of Discretionary Incentive Compensation.Discretionary incentive compensation is distributed to portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards that notionally track the return of certain BlackRock investment products.
7
Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio managers of this Fund have deferred BlackRock, Inc. stock awards.
For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage, which provides direct alignment of portfolio manager discretionary incentive compensation with investment product results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only portfolio managers who manage specified products and whose total compensation is above a specified threshold are eligible to participate in the deferred cash award program.
Other Compensation Benefits.In addition to base salary and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:
Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock, Inc. employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to3-5% of eligible compensation up to the Internal Revenue Service limit ($280,000 for 2019). The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock, Inc. contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to participate in these plans.
(a)(4)Beneficial Ownership of Securities – As of April 30, 2019:
| | |
| Portfolio Manager | | Dollar Range of Equity Securities
of the Fund Beneficially Owned |
| Theodore R. Jaeckel, Jr. | | None |
| Michael Perilli | | None |
8
(b) Not Applicable
Item 9 – Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers
| | | | | | | | | | |
| | | Period | | (a) Total Number of Shares Purchased | | (b) Average
Price Paid per Share | | (c) Total Number of
Shares Purchased as Part
of Publicly Announced
Plans or Programs | | (d) Maximum Number of
Shares that May Yet Be
Purchased Under the Plans
or Programs1 |
| | November 1 – 30, 2018 | | 0 | | 0 | | 0 | | 0 |
| | December 1 – 31, 2018 | | 0 | | 0 | | 0 | | 671,112 |
| | November1- 30, 2018 | | 0 | | 0 | | 0 | | 671,112 |
| | December 1 – 31, 2018 | | 0 | | 0 | | 0 | | 671,112 |
| | January 1 – 31, 2019 | | 0 | | 0 | | 0 | | 671,112 |
| | February 1 – 28, 2019 | | 0 | | 0 | | 0 | | 671,112 |
| | Total: | | 0 | | 0 | | 0 | | 671,112 |
1The Fund announced an open market share repurchase program on November 15, 2018 pursuant to which the Fund was authorized to repurchase, through November 30, 2019, up to 5% of its common shares based on common shares outstanding on November 30, 2018, in open market transactions, subject to certain conditions.
Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 – Controls and Procedures
(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the 1940 Act) that occurred during the last fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 – Disclosure of Securities Lending Activities forClosed-End Management Investment Companies – Not Applicable
Item 13 – Exhibits attached hereto
(a)(1) – Code of Ethics – See Item 2
(a)(2) – Certifications – Attached hereto
(a)(3) – Not Applicable
(a)(4) – Not Applicable
(b) – Certifications – Attached hereto
9
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Long-Term Municipal Advantage Trust
| | |
| By: | | /s/ John M. Perlowski |
| | John M. Perlowski |
| | Chief Executive Officer (principal executive officer) of |
| | BlackRock Long-Term Municipal Advantage Trust |
Date: July 8, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By: | | /s/ John M. Perlowski |
| | John M. Perlowski |
| | Chief Executive Officer (principal executive officer) of |
| | BlackRock Long-Term Municipal Advantage Trust |
Date: July 8, 2019
| | |
| By: | | /s/ Neal J. Andrews |
| | Neal J. Andrews |
| | Chief Financial Officer (principal financial officer) of |
| | BlackRock Long-Term Municipal Advantage Trust |
Date: July 8, 2019
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