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: 04/30/2020
Date of reporting period: 04/30/2020
| Item 1 – | Report to Stockholders |
1
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 | | APRIL 30, 2020 |
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,
The last 12 months have been a time of sudden change in global financial markets, as a long period of growth and positive returns was interrupted in early 2020 by the emergence and spread of the coronavirus. For much of the reporting period, U.S. equities and bonds both delivered impressive returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus became more apparent throughout February and March 2020, leading countries around the world took economically disruptive countermeasures, causing equity prices to fall sharply. While markets have since recovered some of these losses as countries around the world begin reopening, there is still significant uncertainty surrounding the long-term impact of the pandemic on the global economy.
Returns for most securities were robust for the first three quarters of the reporting period, as investors began to realize that the U.S. economy was maintaining the modest yet steady growth that had characterized this economic cycle. However, once stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off and unemployment claims spiked. With large portions of the global economy on hold, all types of international equities ended the reporting period with negative performance, while in the U.S. only large-capitalization stocks delivered a slightly positive return.
The performance of different types of fixed-income securities diverged substantially due to a reduced investor appetite for risk. Treasuries benefited from the risk-off environment, and posted healthy returns, as the 10-year yield (which is inversely related to bond prices) fell to an all-time low. Investment-grade corporate bonds also delivered a positive return, while high-yield corporates were down due to credit concerns.
The U.S. Federal Reserve (the “Fed”) reduced interest rates three times in 2019, to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also announced a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.
Looking ahead, while coronavirus-related disruption is certain to hurt worldwide economic growth, the global expansion is likely to continue once the impact of the outbreak subsides. Nonetheless, there are promising signs that a strong coordinated monetary and fiscal response is underway, both in the United States and abroad. With measures being taken to contain the virus and provide support to impacted businesses and individuals, we anticipate a sharp increase in economic activity as life returns to normal.
Overall, we favor a neutral stance toward risk, given the uncertainty surrounding the economic impact of coronavirus countermeasures. Among equities, we see an advantage in U.S. stocks compared to other developed markets, given the diversity of the U.S. economy and the impressive scope of monetary and fiscal stimulus. In bonds, the swift action taken by the world’s central banks means there are attractive opportunities in credit, and we expect credit spreads to narrow as markets stabilize. Both U.S. Treasuries and sustainable investments can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.
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
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| Total Returns as of April 30, 2020 |
| | | 6-month | | 12-month |
U.S. large cap equities
(S&P 500® Index) | | (3.16)% | | 0.86% |
U.S. small cap equities
(Russell 2000® Index) | | (15.47) | | (16.39) |
International equities
(MSCI Europe, Australasia, Far East Index) | | (14.21) | | (11.34) |
Emerging market equities
(MSCI Emerging Markets Index) | | (10.50) | | (12.00) |
3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index) | | 0.85 | | 2.07 |
U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index) | | 10.73 | | 19.78 |
U.S. investment grade bonds
(Bloomberg Barclays U.S. Aggregate Bond Index) | | 4.86 | | 10.84 |
Tax-exempt municipal bonds
(S&P Municipal Bond Index) | | (1.26) | | 2.21 |
U.S. high yield bonds
(Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index) | | (6.60) | | (4.08) |
| 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, 2020
Municipal Market Conditions
Municipal bonds posted modestly positive total returns amid a bifurcated market narrative in which rallying interest rates and favorable technicals drove strong performance early in the period before sentiment changed as implications of the coronavirus pandemic materialized. During the month of March, municipal bonds experienced volatility that was worse than during the height of the global financial crisis, as performance plummeted -10.87% during a two-week period before rebounding on aggressive valuation-based buying (For comparison, the -11.86% correction in 2008 spanned more than a month.) Performance continued to be hindered in April by the negative fundamental impacts of the prolonged economic shutdown, despite numerous stimulus efforts by the Fed.
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| Technical support waned during the period as a streak of 60-consecutive weeks of inflows turned to record outflows. During the 12 months ended April 30, 2020, municipal bond funds experienced net inflows totaling $38 billion, drawn down by nearly $46 billion in outflows during the months of March and April (based on data from the Investment Company Institute). For the same 12-month period, new issuance was elevated from a historical perspective at $417 billion but slowed materially as market liquidity became constrained amid a flight to quality spurred by the pandemic. | | S&P Municipal Bond Index |
| | Total Returns as of April 30, 2020 |
| | 6 months: (1.26)% |
| | 12 months: 2.21% |
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A Closer Look at Yields
| From April 30, 2019 to April 30, 2020, yields on AAA-rated 30-year municipal bonds decreased by 27 basis points (“bps”) from 2.55% to 2.28%, while ten-year rates decreased by 40 bps from 1.86% to 1.46% and five-year rates decreased by 54 bps from 1.63% to 1.09% (as measured by Thomson Municipal Market Data). As a result, the municipal yield curve steepened over the 12-month period with the spread between two- and 30-year maturities steepening by 39 bps, on par with the 41 bps of steepening in the comparable U.S. Treasury curve. |
During the same time period, tax-exempt municipal bonds significantly underperformed U.S. Treasuries across the yield curve. Relative valuations, which had been broadly stretched since the passage of tax reform, reset to levels not seen since 2008. This has resulted in increased participation from crossover investors in a market that has mainly been driven by retail over the past few years.
Financial Conditions of Municipal Issuers
The coronavirus pandemic is an unprecedented shock to the system impacting nearly every sector in the municipal market. Luckily, most states and municipalities were in excellent fiscal health before the crisis and the federal government has provided an incredible amount of support. Ongoing stability is expected in high-quality states as well as school districts and local governments given that property taxes have proven resilient in past economic downturns. Essential public services such as power, water, and sewer are protected segments. State housing authority bonds, flagship universities, and strong national and regional health systems are well positioned to absorb the impact of the economic shock. However, some segments are facing daunting financial challenges and federal support may be insufficient, requiring issuers to draw down reserves and/or borrow to meet financial obligations. Critical providers (such as safety net hospitals, mass transit and airports) with limited resources will require funding from the states and broader municipalities they serve. We anticipate that a small subset of the market, mainly non-rated stand-alone projects, will experience significant credit deterioration. Assuming the worst case, a prolonged recession would likely mean a spate of defaults, primarily in non-rated credits, and the migration of the municipal market’s overall credit quality from double-A to a still-strong single-A rating. As a result, we advocate careful credit selection and anticipate increased credit dispersion as the market navigates near-term uncertainty.
The opinions expressed are those of BlackRock as of April 30, 2020 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 S&P 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 | | 2020 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 each Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Trust’s 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 Trust’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Trust had not used leverage. Furthermore, the value of a Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of each Trust’s obligations under its respective leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence each Trust’s NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Trust’s intended leveraging strategy will be successful.
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 each Trust’s 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, 2020 | | 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, 2020 ($14.75)(a) | | 4.80% |
Tax Equivalent Yield(b) | | 8.11% |
Current Monthly Distribution per Common Share(c) | | $0.0590 |
Current Annualized Distribution per Common Share(c) | | $0.7080 |
Leverage as of April 30, 2020(d) | | 42% |
| | (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. | |
| | (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. | |
| | (c) | The monthly distribution per Common Share, declared on June 1, 2020, was increased to $0.0630 per share. The yield on closing market price, tax equivalent yield, current monthly distribution per Common Share, and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. | |
| | (d) | Represents 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, 2020 were as follows:
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| | | Returns Based On | |
| | | Market Price | | | NAV | |
BKN(a)(b) | | | 7.77 | % | | | (1.16 | )% |
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) | | | (3.22 | ) | | | (2.24 | ) |
| | (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:
Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures and stay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain.
The Trust’s use of U.S. Treasury futures to manage interest rate risk proved detrimental to the Trust’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the coronavirus pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined amid investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Trust’s use of leverage also weighed on the Trust’s results at a time of falling bond prices.
Positions in lower-rated securities also detracted, as this market segment underperformed by a wide margin at a time of heightened uncertainty. Lower-quality states such as Illinois and New Jersey were especially notable laggards. Both are facing a likely reduction in tax revenues due to the stay-at-home orders and business closures that resulted from the coronavirus pandemic.
Portfolio income contributed to performance. Positions in higher-rated securities and issuers that focus on essential services also helped Trust returns, particularly during the market turmoil in March.
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 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
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| Trust Summary as of April 30, 2020 (continued) | | BlackRock Investment Quality Municipal Trust, Inc. |
Market Price and Net Asset Value Per Share Summary
| | | | | | | | | | | | | | | | | | | | |
| | | 04/30/20 | | | 04/30/19 | | | Change | | | High | | | Low | |
Market Price | | $ | 14.75 | | | $ | 14.31 | | | | 3.07 | % | | $ | 16.26 | | | $ | 10.76 | |
Net Asset Value | | | 14.89 | | | | 15.75 | | | | (5.46 | ) | | | 17.13 | | | | 13.41 | |
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 | | 04/30/20 | | | 04/30/19 | |
County/City/Special District/School District | | | 20 | % | | | 20 | % |
Transportation | | | 16 | | | | 16 | |
Health | | | 16 | | | | 15 | |
Utilities | | | 12 | | | | 10 | |
State | | | 11 | | | | 11 | |
Education | | | 10 | | | | 10 | |
Tobacco | | | 6 | | | | 6 | |
Housing | | | 6 | | | | 5 | |
Corporate | | | 3 | | | | 7 | |
| | 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, | | | | |
2020 | | | 5 | % |
2021 | | | 8 | |
2022 | | | 11 | |
2023 | | | 10 | |
2024 | | | 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 | | 04/30/20 | | | 04/30/19 | |
AAA/Aaa | | | 5 | % | | | 4 | % |
AA/Aa | | | 36 | | | | 37 | |
A | | | 28 | | | | 27 | |
BBB/Baa | | | 13 | | | | 17 | |
BB/Ba | | | 4 | | | | 2 | |
B/B | | | 2 | | | | 4 | |
CC | | | 1 | | | | 1 | |
N/R(b) | | | 11 | | | | 8 | |
| | (a) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings 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, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 2% and 1%, respectively, of the Trust’s total investments. | |
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| Trust Summary as of April 30, 2020 | | 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 ten 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, 2020 ($10.92)(a) | | 5.55% |
Tax Equivalent Yield(b) | | 9.38% |
Current Monthly Distribution per Common Share(c) | | $0.0505 |
Current Annualized Distribution per Common Share(c) | | $0.6060 |
Leverage as of April 30, 2020(d) | | 43% |
| | (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, 2020 were as follows:
| | | | | | | | |
| | | Returns Based On | |
| | | Market Price | | | NAV | |
BTA(a)(b) | | | (3.49 | )% | | | (5.70 | )% |
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) | | | (3.22 | ) | | | (2.24 | ) |
| | (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:
Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorablesupply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures andstay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets.Tax-exempt issues were hard hit in thesell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain.
The Trust’s use of U.S. Treasury futures to manage interest rate risk proved detrimental to the Trust’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the coronavirus pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined as a result of investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Trust’s use of leverage, while augmenting income, also weighed on the Trust’s results at a time of falling bond prices.
The portfolio’s allocation to BBB issues and lower-rated securities, particularly those with maturities of 25 years and above, detracted from Trust performance. Yield spreads on lower-quality issues widened (significantly in some cases) as the market began to price in the uncertainties around the fundamental impact of the coronavirus pandemic.
Positions in education and health care issues, which were among the sectors hit hardest in thesell-off, also detracted from the Trust’s performance. Positions in thetax-backed state sector further detracted as lower-rated issuers such as Illinois, New Jersey and Puerto Rico underperformed.
Portfolio income contributed to performance. Positions in higher-rated securities (those rated A and above) also helped Trust returns. This segment included more seasoned portfolio positions, highlighted bypre-refunded securities and holdings in the utilities sector.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
| | |
| 8 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
| Trust Summary as of April 30, 2020 (continued) | | BlackRock Long-Term Municipal Advantage Trust |
Market Price and Net Asset Value Per Share Summary
| | | | | | | | | | | | | | | | | | | | |
| | | 04/30/20 | | | 04/30/19 | | | Change | | | High | | | Low | |
Market Price | | $ | 10.92 | | | $ | 11.88 | | | | (8.08 | )% | | $ | 13.76 | | | $ | 8.61 | |
Net Asset Value | | | 11.20 | | | | 12.47 | | | | (10.18 | ) | | | 13.36 | | | | 10.23 | |
Market Price and Net Asset Value History For the Past Five Years
Overview of the Trust’s Total Investments*
SECTOR ALLOCATION
| | | | | | | | |
| Sector | | 04/30/20 | | | 04/30/19 | |
County/City/Special District/School District | | | 19 | % | | | 17 | % |
Utilities | | | 16 | | | | 14 | |
Transportation | | | 16 | | | | 16 | |
Health | | | 15 | | | | 17 | |
Tobacco | | | 11 | | | | 11 | |
State | | | 8 | | | | 8 | |
Education | | | 8 | | | | 8 | |
Corporate | | | 5 | | | | 5 | |
Housing | | | 2 | | | | 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, | | | | |
2020 | | | 9 | % |
2021 | | | 15 | |
2022 | | | 5 | |
2023 | | | 10 | |
2024 | | | 8 | |
| | (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 | | 04/30/20 | | | 04/30/19 | |
AAA/Aaa | | | 3 | % | | | 2 | % |
AA/Aa | | | 31 | | | | 32 | |
A | | | 17 | | | | 15 | |
BBB/Baa | | | 19 | | | | 20 | |
BB/Ba | | | 9 | | | | 6 | |
B/B | | | 4 | | | | 7 | |
CC | | | 1 | | | | — | |
N/R(b) | | | 16 | | | | 18 | |
| | (a) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings 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, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and less than 1%, respectively, of the Trust’s total investments. | |
| | |
| Trust Summary as of April 30, 2020 | | 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, 2020 ($12.14)(a) | | 5.29% |
Tax Equivalent Yield(b) | | 8.94% |
Current Monthly Distribution per Common Share(c) | | $0.0535 |
Current Annualized Distribution per Common Share(c) | | $0.6420 |
Leverage as of April 30, 2020(d) | | 41% |
| | (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. | |
| | (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. | |
| | (c) | The monthly distribution per Common Share, declared on June 1, 2020, was increased to $0.0565 per share. The yield on closing market price, tax equivalent yield, current monthly distribution per Common Share, and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. | |
| | (d) | Represents 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, 2020 were as follows:
| | | | | | | | |
| | | Returns Based On | |
| | | Market Price | | | NAV | |
BFK(a)(b) | | | (7.74 | )% | | | (4.51 | )% |
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) | | | (3.22 | ) | | | (2.24 | ) |
| | (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. | |
| | (b) | The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV. | |
| | (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on 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:
Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures and stay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain.
Prior to the March downturn, the Trust benefited from its investments in longer-dated securities with maturities of 20 years and above. Holdings in bonds on the lower end of the investment-grade spectrum (A and BBB) also aided Trust performance in this time, as did positions in the tax-backed, transportation and tobacco sectors. Once the market turned lower, these same factors detracted from the Trust’s results and were the primary reason for the Trust’s negative return for the full period.
The Trust’s use of U.S. Treasury futures to manage interest rate risk proved detrimental to the Trust’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the coronavirus pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined amid investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Trust’s use of leverage also weighed on the Trust’s results at a time of falling bond prices.
On the positive side, holdings in AAA and AA rated debt performed better in the sell-off compared to other areas of the market.
The investment adviser increased the Trust’s duration, thereby moving away from the more defensive posture it held for the majority of the period. This change reflected the investment adviser’s belief that yields had fallen to low levels that indicated little additional upside potential from rate movements.
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 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
| Trust Summary as of April 30, 2020 (continued) | | BlackRock Municipal Income Trust |
Market Price and Net Asset Value Per Share Summary
| | | | | | | | | | | | | | | | | | | | |
| | | 04/30/20 | | | 04/30/19 | | | Change | | | High | | | Low | |
Market Price | | $ | 12.14 | | | $ | 13.79 | | | | (11.97 | )% | | $ | 15.16 | | | $ | 9.26 | |
Net Asset Value | | | 12.91 | | | | 14.17 | | | | (8.89 | ) | | | 15.17 | | | | 11.87 | |
Market Price and Net Asset Value History For the Past Five Years
Overview of the Trust’s Total Investments*
SECTOR ALLOCATION
| | | | | | | | |
| Sector | | 04/30/20 | | | 04/30/19 | |
Transportation | | | 22 | % | | | 24 | % |
Utilities | | | 22 | | | | 20 | |
County/City/Special District/School District | | | 15 | | | | 12 | |
Health | | | 12 | | | | 15 | |
Tobacco | | | 10 | | | | 9 | |
State | | | 9 | | | | 9 | |
Education | | | 6 | | | | 6 | |
Corporate | | | 4 | | | | 4 | |
Housing | | | — | (a) | | | 1 | |
| | (a) | Rounds to less than 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 (d)
| | | | |
Calendar Year Ended December 31, | | | | |
2020 | | | 11 | % |
2021 | | | 13 | |
2022 | | | 10 | |
2023 | | | 7 | |
2024 | | | 7 | |
| | (d) | 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 (b)
| | | | | | | | |
| Credit Rating | | 04/30/20 | | | 04/30/19 | |
AAA/Aaa | | | 5 | % | | | 3 | % |
AA/Aa | | | 29 | | | | 32 | |
A | | | 25 | | | | 24 | |
BBB/Baa | | | 22 | | | | 24 | |
BB/Ba | | | 8 | | | | 4 | |
B/B | | | 2 | | | | 4 | |
CC | | | — | | | | 1 | |
N/R(c) | | | 9 | | | | 8 | |
| | (b) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings 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. | |
| | (c) | 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, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 2% and less than 1% respectively of the Trust’s total investments. | |
| | |
| Trust Summary as of April 30, 2020 | | 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, 2020 ($12.17)(a) | | 5.42% |
Tax Equivalent Yield(b) | | 9.16% |
Current Monthly Distribution per Common Share(c) | | $0.0550 |
Current Annualized Distribution per Common Share(c) | | $0.6600 |
Leverage as of April 30, 2020(d) | | 42% |
| | (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, 2020 were as follows:
| | | | | | | | |
| | | Returns Based On | |
| | | Market Price | | | NAV | |
BSD(a)(b) | | | (3.38 | )% | | | (4.10 | )% |
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) | | | (3.22 | ) | | | (2.24 | ) |
| | (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:
Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures and stay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain.
The Trust’s use of U.S. Treasury futures to manage interest rate risk proved detrimental to the Trust’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined as a result of investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Trust’s use of leverage, while augmenting income, also weighed on the Trust’s results at a time of falling bond prices.
The portfolio’s allocation to BBB issues and lower-rated securities detracted from performance. Yield spreads on lower-quality issues widened (significantly in some cases) as the market began to price in the uncertainties around the fundamental impact of the coronavirus pandemic.
Positions in the tax-backed state sector detracted as lower-rated issuers such as Illinois, New Jersey and Puerto Rico underperformed. An allocation to the corporate sector was an additional detractor.
Portfolio income contributed to performance. Positions in higher-rated securities (those rated A and above) also helped Trust returns. This segment included more seasoned portfolio positions, highlighted by pre-refunded securities and holdings in the housing sector.
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 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
| Trust Summary as of April 30, 2020 (continued) | | BlackRock Strategic Municipal Trust |
Market Price and Net Asset Value Per Share Summary
| | | | | | | | | | | | | | | | | | | | |
| | | 04/30/20 | | | 04/30/19 | | | Change | | | High | | | Low | |
Market Price | | $ | 12.17 | | | $ | 13.21 | | | | (7.87 | )% | | $ | 15.39 | | | $ | 9.96 | |
Net Asset Value | | | 12.94 | | | | 14.15 | | | | (8.55 | ) | | | 15.15 | | | | 11.88 | |
Market Price and Net Asset Value History For the Past Five Years
Overview of the Trust’s Total Investments*
SECTOR ALLOCATION
| | | | | | | | |
| Sector | | 04/30/20 | | | 04/30/19 | |
Transportation | | | 23 | % | | | 22 | % |
Health | | | 16 | | | | 18 | |
County/City/Special District/School District | | | 15 | | | | 12 | |
Utilities | | | 13 | | | | 11 | |
State | | | 8 | | | | 8 | |
Tobacco | | | 8 | | | | 8 | |
Corporate | | | 7 | | | | 9 | |
Education | | | 6 | | | | 7 | |
Housing | | | 4 | | | | 5 | |
| | For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector subclassifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment 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, | | | | |
2020 | | | 8 | % |
2021 | | | 12 | |
2022 | | | 9 | |
2023 | | | 8 | |
2024 | | | 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 | | 04/30/20 | | | 04/30/19 | |
AAA/Aaa | | | 2 | % | | | 4 | % |
AA/Aa | | | 35 | | | | 32 | |
A | | | 19 | | | | 20 | |
BBB/Baa | | | 23 | | | | 22 | |
BB/Ba | | | 5 | | | | 3 | |
B/B | | | 1 | | | | 3 | |
CC | | | 1 | | | | — | |
N/R(b) | | | 14 | | | | 16 | |
| | (a) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings 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, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 3% and less than 1%, respectively, of the Trust’s total investments. | |
| | |
Schedule of Investments April 30, 2020 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| | |
Municipal Bonds — 131.7% | | | | | | | | |
|
| Arizona — 6.6% | |
Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 02/01/42 | | $ | 3,300 | | | $ | 3,433,848 | |
Arizona IDA, Refunding RB, Odyssey Preparatory Academy Project, Series A, 5.50%, 07/01/52(a) | | | 215 | | | | 190,208 | |
Arizona Industrial Development Authority, Refunding RB, Series G, 5.00%, 07/01/47(a) | | | 430 | | | | 374,100 | |
County of Pinal Arizona Electric District No. 3, Refunding RB: | | | | | | | | |
4.75%, 07/01/21(b) | | | 680 | | | | 709,947 | |
4.75%, 07/01/31 | | | 3,070 | | | | 3,191,726 | |
Salt Verde Financial Corp., RB, Senior: | | | | | | | | |
5.00%, 12/01/32 | | | 1,095 | | | | 1,332,166 | |
5.00%, 12/01/37 | | | 4,885 | | | | 6,028,041 | |
University Medical Center Corp., Refunding RB, 6.00%, 07/01/21(b) | | | 1,600 | | | | 1,695,824 | |
| | | | | | | | |
| | | | | | | 16,955,860 | |
|
| Arkansas — 2.6% | |
Arkansas Development Finance Authority, RB, Big River Steel Project, AMT, 4.50%, 09/01/49(a) | | | 1,550 | | | | 1,323,622 | |
City of Benton Arkansas, RB, 4.00%, 06/01/39 | | | 755 | | | | 798,745 | |
City of Fort Smith Arkansas Water & Sewer Revenue, Refunding RB, 4.00%, 10/01/40 | | | 1,250 | | | | 1,343,850 | |
City of Little Rock Arkansas, RB, 4.00%, 07/01/41 | | | 2,645 | | | | 2,750,165 | |
County of Pulaski Arkansas Public Facilities Board, RB, 5.00%, 12/01/42 | | | 465 | | | | 493,142 | |
| | | | | | | | |
| | | | | | | 6,709,524 | |
|
| California — 17.8% | |
ABC Unified School District, GO, Series C, 0.00%, 08/01/33(d) | | | 3,420 | | | | 2,310,791 | |
California Infrastructure & Economic Development Bank, Refunding RB, Academy Motion Picture Arts and Sciences, Series A, 4.00%, 11/01/45 | | | 3,330 | | | | 3,446,650 | |
California Statewide Communities Development Authority, Refunding RB, John Muir Health, Series A, 4.00%, 12/01/53 | | | 725 | | | | 741,182 | |
Carlsbad California Unified School District, GO, Election of 2006, Series B, 6.00%, 05/01/34 | | | 1,500 | | | | 1,785,945 | |
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 | | | | 2,618,301 | |
Series A-1, 5.75%, 03/01/34 | | | 3,000 | | | | 3,086,550 | |
Golden State Tobacco Securitization Corp., Refunding RB: | | | | | | | | |
Series A-1, 3.50%, 06/01/36 | | | 1,110 | | | | 1,084,559 | |
Series A-2, 5.00%, 06/01/47 | | | 830 | | | | 809,731 | |
Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 7.00%, 08/01/34(c) | | | 2,475 | | | | 2,948,294 | |
Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 0.00%, 08/01/38(d) | | | 12,000 | | | | 6,423,720 | |
Palomar Community College District, GO, CAB, Election of 2006, Series B: | | | | | | | | |
0.00%, 08/01/30(d) | | | 2,270 | | | | 1,861,037 | |
0.00%, 08/01/33(d) | | | 4,250 | | | | 1,816,450 | |
0.00%, 08/01/39(c) | | | 4,000 | | | | 4,582,800 | |
San Diego Community College District, GO, CAB, Election of 2002, 6.00%, 08/01/33 | | | 4,200 | | | | 5,356,512 | |
State of California, GO, Refunding: | | | | | | | | |
Various Purpose, 5.00%, 02/01/38 | | | 2,000 | | | | 2,175,680 | |
Various Purposes, 4.00%, 10/01/44 | | | 510 | | | | 534,424 | |
State of California, GO: | | | | | | | | |
6.00%, 03/01/33 | | | 760 | | | | 762,629 | |
5.50%, 03/01/40 | | | 3,255 | | | | 3,263,919 | |
| | | | | | | | |
| | | | | | | 45,609,174 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Colorado — 0.3% | |
Colorado Educational & Cultural Facilities Authority, Refunding RB, Rocky Mountain Classical Academy Project, 5.00%, 10/01/59(a) | | $ | 970 | | | $ | 854,279 | |
| | | | | | | | |
|
| Connecticut — 0.6% | |
Connecticut Housing Finance Authority, Refunding RB, S/F Housing,Sub-Series E-1 (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 05/15/36 | | | 585 | | | | 636,030 | |
Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F, 5.00%, 07/01/21(b) | | | 950 | | | | 996,692 | |
| | | | | | | | |
| | | | | | | 1,632,722 | |
|
| Delaware — 0.7% | |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 | | | 1,800 | | | | 1,820,682 | |
| | | | | | | | |
|
| District of Columbia — 1.0% | |
Metropolitan Washington Airports Authority, Refunding ARB, Dulles Metrorail And Capital Improvement Projects, Series A, 5.00%, 10/01/53 | | | 2,505 | | | | 2,572,334 | |
| | | | | | | | |
|
| Florida — 7.7% | |
Capital Trust Agency, Inc., RB, Renaissance Charter School, Inc., Series A, 5.00%, 06/15/49(a) | | | 100 | | | | 82,159 | |
County of Miami-Dade Florida, RB: | | | | | | | | |
CAB, Subordinate Special Obligation, 0.00%, 10/01/32(d) | | | 5,000 | | | | 3,491,250 | |
CAB, Subordinate Special Obligation, 0.00%, 10/01/33(d) | | | 15,375 | | | | 10,139,659 | |
Series B, AMT, 6.00%, 10/01/32 | | | 3,000 | | | | 3,341,010 | |
County of Miami-Dade Florida, Refunding ARB, Series A, AMT, 5.00%, 10/01/38 | | | 365 | | | | 395,207 | |
County of Osceola Transportation Revenue, Refunding RB,Series A-2(d): | | | | | | | | |
0.00%, 10/01/41 | | | 445 | | | | 185,285 | |
0.00%, 10/01/42 | | | 595 | | | | 237,500 | |
0.00%, 10/01/43 | | | 540 | | | | 206,388 | |
0.00%, 10/01/44 | | | 550 | | | | 201,471 | |
0.00%, 10/01/45 | | | 465 | | | | 163,131 | |
Greater Orlando Aviation Authority, RB, Priority Subordinated,Sub-Series A, AMT, 5.00%, 10/01/52 | | | 1,130 | | | | 1,211,371 | |
| | | | | | | | |
| | | | | | | 19,654,431 | |
|
| Georgia — 0.6% | |
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/43 | | | 525 | | | | 561,808 | |
Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project: | | | | | | | | |
4.00%, 01/01/49 | | | 415 | | | | 399,284 | |
5.00%, 01/01/56 | | | 565 | | | | 595,956 | |
| | | | | | | | |
| | | | | | | 1,557,048 | |
|
| Hawaii — 1.4% | |
State of Hawaii Department of Budget & Finance, Refunding RB: | | | | | | | | |
Hawaiian Electric Co., Inc. AMT, 4.00%, 03/01/37 | | | 2,770 | | | | 2,860,745 | |
Special Purpose, Senior Living, Kahala Nui, 5.25%, 11/15/37 | | | 600 | | | | 624,078 | |
| | | | | | | | |
| | | | | | | 3,484,823 | |
|
| Idaho — 1.2% | |
Idaho Health Facilities Authority, RB, St. Lukes Health System Project, Series A, 5.00%, 03/01/39 | | | 3,000 | | | | 3,159,510 | |
| | | | | | | | |
|
| Illinois — 6.9% | |
Chicago Board of Education, GO: | | | | | | | | |
Dedicated Revenues, Series H, 5.00%, 12/01/36 | | | 375 | | | | 361,478 | |
Project, 5.25%, 12/01/35 | | | 1,235 | | | | 1,223,354 | |
| | |
| 14 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Illinois (continued) | |
Chicago Board of Education, GO, Refunding: | | | | | | | | |
Dedicated Revenues, 5.00%, 12/01/34 | | $ | 370 | | | $ | 359,181 | |
Dedicated Revenues, Series F, 5.00%, 12/01/22 | | | 505 | | | | 514,146 | |
5.00%, 12/01/25 | | | 550 | | | | 561,357 | |
Chicago Board of Education, GO, Series C, Series D: | | | | | | | | |
5.00%, 12/01/46 | | | 455 | | | | 409,550 | |
5.00%, 12/01/46 | | | 1,180 | | | | 1,020,606 | |
Refunding Dedicated Revenues, 5.00%, 12/01/26 | | | 675 | | | | 685,935 | |
City of Chicago Illinois, Refunding ARB, O’Hare International Airport Passenger Facility Charge, Series B, AMT, 4.00%, 01/01/29 | | | 2,400 | | | | 2,422,320 | |
City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%, 01/01/41 | | | 1,900 | | | | 1,983,030 | |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 | | | 1,000 | | | | 1,051,470 | |
Illinois Finance Authority, Refunding RB, OSF Healthcare System, 6.00%, 05/15/39 | | | 155 | | | | 155,147 | |
Illinois Housing Development Authority, RB, S/F Housing, 4.13%, 10/01/38 | | | 1,040 | | | | 1,134,744 | |
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project Bonds, Series A, 5.00%, 06/15/57 | | | 590 | | | | 525,407 | |
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project, 4.00%, 06/15/50 | | | 455 | | | | 378,883 | |
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21(b) | | | 1,700 | | | | 1,793,993 | |
State of Illinois, GO: | | | | | | | | |
5.00%, 02/01/39 | | | 1,000 | | | | 887,730 | |
Series A, 5.00%, 04/01/38 | | | 200 | | | | 178,090 | |
Series D, 5.00%, 11/01/28 | | | 1,585 | | | | 1,543,742 | |
Upper Illinois River Valley Development Authority, Refunding RB, Prairie Crossing Charter School, 5.00%, 01/01/55(a) | | | 610 | | | | 514,297 | |
| | | | | | | | |
| | | | | | | 17,704,460 | |
|
| Indiana — 0.2% | |
County of Allen Indiana, RB, StoryPoint Fort Wayne Project,Series A-1(a): | | | | | | | | |
6.63%, 01/15/34 | | | 300 | | | | 296,574 | |
6.75%, 01/15/43 | | | 245 | | | | 234,534 | |
| | | | | | | | |
| | | | | | | 531,108 | |
|
| Iowa — 0.8% | |
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project, Series B,
5.25%, 12/01/50(e) | | | 2,050 | | | | 1,954,593 | |
| | | | | | | | |
|
| Kansas — 0.7% | |
City of Lenexa Kansas, Refunding RB, Lakeview Village, Inc., Series A, 5.00%, 05/15/39 | | | 640 | | | | 594,304 | |
County of Seward Kansas Unified School District No. 480 Liberal, GO, Refunding, 5.00%, 09/01/39 | | | 1,085 | | | | 1,180,784 | |
| | | | | | | | |
| | | | | | | 1,775,088 | |
|
| Kentucky — 6.3% | |
County of Boyle Kentucky, Refunding RB, Centre College of Kentucky, 5.00%, 06/01/37 | | | 2,000 | | | | 2,223,420 | |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 01/01/23(b) | | | 3,400 | | | | 3,753,430 | |
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/23(d) | | | 8,500 | | | | 7,793,650 | |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C(c): | | | | | | | | |
6.45%, 07/01/34 | | | 1,000 | | | | 947,160 | |
6.60%, 07/01/39 | | | 1,395 | | | | 1,303,153 | |
| | | | | | | | |
| | | | | | | 16,020,813 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Louisiana — 1.6% | |
City of Alexandria Louisiana Utilities, RB, 5.00%, 05/01/39 | | $ | 1,790 | | | $ | 1,998,195 | |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project,Series A-1, 6.50%, 11/01/35 | | | 1,565 | | | | 1,584,672 | |
Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.50%, 05/01/21(b) | | | 600 | | | | 633,654 | |
| | | | | | | | |
| | | | | | | 4,216,521 | |
|
| Maine — 0.4% | |
State of Maine Housing Authority, RB: | | | | | | | | |
M/F Housing, Series E, 4.25%, 11/15/43 | | | 540 | | | | 581,364 | |
S/F Housing, Series C, 3.95%, 11/15/43 | | | 505 | | | | 525,316 | |
| | | | | | | | |
| | | | | | | 1,106,680 | |
|
| Maryland — 0.5% | |
County of Anne Arundel Maryland Consolidated, RB, Special Taxing District, Villages at Two Rivers Project: | | | | | | | | |
5.13%, 07/01/36 | | | 260 | | | | 234,080 | |
5.25%, 07/01/44 | | | 260 | | | | 218,694 | |
Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38 | | | 875 | | | | 931,604 | |
| | | | | | | | |
| | | | | | | 1,384,378 | |
|
| Massachusetts — 2.2% | |
Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A: | | | | | | | | |
5.25%, 01/01/42 | | | 900 | | | | 973,998 | |
5.00%, 01/01/47 | | | 1,010 | | | | 1,053,066 | |
Massachusetts Development Finance Agency, Refunding RB: | | | | | | | | |
Atrius Health Issue, Series A, 4.00%, 06/01/49 | | | 235 | | | | 235,670 | |
International Charter School, 5.00%, 04/15/40 | | | 600 | | | | 619,698 | |
Suffolk University, 4.00%, 07/01/39 | | | 1,375 | | | | 1,392,463 | |
Massachusetts HFA, RB, M/F Housing, Series A, 3.85%, 06/01/46 | | | 35 | | | | 36,204 | |
Massachusetts HFA, Refunding RB, AMT, Series 182, 3.30%, 12/01/28 | | | 1,000 | | | | 1,054,810 | |
Massachusetts Housing Finance Agency, RB, M/F Housing,Series C-1, 2.90%, 12/01/39 | | | 365 | | | | 354,871 | |
| | | | | | | | |
| | | | | | | 5,720,780 | |
|
| Michigan — 3.6% | |
Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 07/01/44 | | | 360 | | | | 369,421 | |
Michigan Finance Authority, Refunding RB, Henry Ford Health System, 4.00%, 11/15/46 | | | 900 | | | | 864,783 | |
Michigan State Housing Development Authority, RB, Series B, 2.95%, 12/01/39 | | | 375 | | | | 373,024 | |
Michigan Strategic Fund, RB, I-75 Improvement Project, AMT, 5.00%, 12/31/43 | | | 1,250 | | | | 1,259,875 | |
State of Michigan Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32 | | | 4,150 | | | | 4,282,592 | |
State of Michigan Housing Development Authority, RB, S/F Housing: | | | | | | | | |
Series A, 4.00%, 06/01/49 | | | 875 | | | | 928,139 | |
Series C, 4.13%, 12/01/38 | | | 1,110 | | | | 1,192,529 | |
| | | | | | | | |
| | | | | | | 9,270,363 | |
|
| Minnesota — 1.9% | |
City of Otsego Minnesota, Refunding RB, Kaleidoscope Charter School Project, Series A, 5.00%, 09/01/44 | | | 700 | | | | 595,035 | |
City of Spring Lake Park Michigan, RB, Academy for Higher Learning Project, 5.00%, 06/15/39 | | | 1,760 | | | | 1,554,678 | |
Housing & Redevelopment Authority of The City of Saint Paul Minnesota, RB, Great River School Project, Series A, 5.50%, 07/01/52(a) | | | 305 | | | | 261,806 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 15 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Minnesota (continued) | |
Minneapolis-St. Paul Metropolitan Airports Commission, Refunding ARB, Sub Series D, AMT, 5.00%, 01/01/41 | | $ | 460 | | | $ | 503,222 | |
Minnesota Higher Education Facilities Authority, RB: | | | | | | | | |
Augsburg College, Series B, 4.25%, 05/01/40 | | | 1,685 | | | | 1,336,946 | |
College of St. Benedict,Series 8-K, 4.00%, 03/01/43 | | | 615 | | | | 578,998 | |
| | | | | | | | |
| | | | | | | 4,830,685 | |
|
| Mississippi — 0.6% | |
County of Warren Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, 5.38%, 12/01/35 | | | 600 | | | | 620,328 | |
Mississippi Development Bank, RB, CAB, Special Obligation, Hinds Community College District (AGM), 5.00%, 04/01/21(b) | | | 910 | | | | 944,261 | |
| | | | | | | | |
| | | | | | | 1,564,589 | |
|
| Missouri — 3.0% | |
Missouri Development Finance Board, RB, Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41 | | | 1,350 | | | | 1,408,009 | |
Missouri State Health & Educational Facilities Authority, RB: | | | | | | | | |
A.T. Still University of Health Sciences, 5.25%, 10/01/21(b) | | | 500 | | | | 530,520 | |
A.T. Still University of Health Sciences, 5.00%, 10/01/23(b) | | | 750 | | | | 849,833 | |
Heartland Regional Medical Center, 4.13%, 02/15/43 | | | 700 | | | | 706,146 | |
University of Central Missouri,Series C-2, 5.00%, 10/01/34 | | | 1,500 | | | | 1,658,565 | |
Missouri State Health & Educational Facilities Authority, Refunding RB, Kansas City University of Medicine and Biosciences, Series A: | | | | | | | | |
5.00%, 06/01/42 | | | 860 | | | | 993,584 | |
5.00%, 06/01/47 | | | 1,230 | | | | 1,409,297 | |
| | | | | | | | |
| | | | | | | 7,555,954 | |
|
| Nebraska — 1.9% | |
Central Plains Energy Project, RB, Gas Project No. 3, 5.00%, 09/01/42 | | | 900 | | | | 952,353 | |
County of Douglas Nebraska Hospital Authority No. 3, Refunding RB, Health Facilities Nebraska Methodist Health System, 5.00%, 11/01/45 | | | 600 | | | | 640,224 | |
Nebraska Public Power District, Refunding RB, Series A: | | | | | | | | |
5.00%, 01/01/32 | | | 2,535 | | | | 2,689,356 | |
4.00%, 01/01/44 | | | 600 | | | | 615,684 | |
| | | | | | | | |
| | | | | | | 4,897,617 | |
|
| Nevada — 0.7% | |
County of Clark Nevada, Refunding ARB, Department of Aviation, Subordinate Lien,Series A-2, 4.25%, 07/01/36 | | | 1,500 | | | | 1,569,060 | |
Nevada Department of Business & Industry, RB, Series A, 5.00%, 07/15/37(a) | | | 125 | | | | 118,994 | |
| | | | | | | | |
| | | | | | | 1,688,054 | |
|
| New Hampshire — 0.3% | |
New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project(a): | | | | | | | | |
Series B, 4.63%, 11/01/42 | | | 505 | | | | 452,728 | |
Series C, AMT, 4.88%, 11/01/42 | | | 220 | | | | 198,873 | |
| | | | | | | | |
| | | | | | | 651,601 | |
|
| New Jersey — 8.5% | |
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel,Sub-Series B,
6.25%, 01/01/37(f)(g) | | | 1,510 | | | | 21,518 | |
New Jersey EDA, RB: | | | | | | | | |
Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30 | | | 990 | | | | 983,159 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| New Jersey (continued) | |
Goethals Bridge Replacement Project (AGM), AMT, 5.13%, 07/01/42 | | $ | 300 | | | $ | 316,305 | |
S/F Housing, State House Project, Series B, 4.50%, 06/15/40 | | | 1,930 | | | | 1,744,295 | |
School Facilities Construction Bonds, Series DDD, 5.00%, 06/15/42 | | | 160 | | | | 155,491 | |
New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Barnabas Health Care System, Series A: | | | | | | | | |
4.63%, 07/01/21(b) | | | 770 | | | | 801,085 | |
5.63%, 07/01/21(b) | | | 2,560 | | | | 2,692,710 | |
5.00%, 07/01/25 | | | 500 | | | | 532,560 | |
New Jersey Higher Education Student Assistance Authority, Refunding RB, Series B, AMT, 3.25%, 12/01/39 | | | 1,970 | | | | 1,941,514 | |
New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/45 | | | 820 | | | | 890,340 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
CAB, Transportation System, Series A, 0.00%, 12/15/35(d) | | | 1,600 | | | | 801,392 | |
Transportation System, Series A, 5.50%, 06/15/21(b) | | | 500 | | | | 527,455 | |
Transportation System, Series A, 5.00%, 06/15/42 | | | 395 | | | | 383,869 | |
Transportation System, Series B, 5.50%, 06/15/31 | | | 2,000 | | | | 2,015,280 | |
Transportation Program, Series AA, 5.00%, 06/15/38 | | | 290 | | | | 284,368 | |
Transportation Program, Series AA, 5.00%, 06/15/45 | | | 1,350 | | | | 1,298,957 | |
Transportation Program, Series AA, 5.00%, 06/15/46 | | | 600 | | | | 574,542 | |
New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System: | | | | | | | | |
Bond, 4.00%, 12/15/39 | | | 820 | | | | 723,724 | |
Series A, 5.00%, 12/15/36 | | | 240 | | | | 237,108 | |
Tobacco Settlement Financing Corp., Refunding RB,Sub-Series B, 5.00%, 06/01/46 | | | 4,770 | | | | 4,795,376 | |
| | | | | | | | |
| | | | | | | 21,721,048 | |
|
| New Mexico — 0.3% | |
New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%, 08/01/44 | | | 680 | | | | 731,796 | |
| | | | | | | | |
|
| New York — 3.9% | |
City of New York Industrial Development Agency, RB, PILOT: | | | | | | | | |
(AMBAC), 5.00%, 01/01/39 | | | 1,100 | | | | 1,100,550 | |
Queens Baseball Stadium (AGC), 6.50%, 01/01/46 | | | 300 | | | | 301,014 | |
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41(a) | | | 1,400 | | | | 1,396,500 | |
Counties of New York Tobacco Trust VI, Refunding RB, Settlement Pass-Through Turbo, Series C, 4.00%, 06/01/51 | | | 1,000 | | | | 731,920 | |
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45 | | | 1,825 | | | | 1,668,214 | |
Metropolitan Transportation Authority, RB, Series E, 5.00%, 11/15/43 | | | 30 | | | | 30,495 | |
Metropolitan Transportation Authority, Refunding RB,Series C-1, 5.00%, 11/15/56 | | | 320 | | | | 327,130 | |
New York Liberty Development Corp., Refunding RB, 3 World Trade Center Project, Class 2, 5.15%, 11/15/34(a) | | | 640 | | | | 613,466 | |
New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31 | | | 820 | | | | 796,490 | |
Port Authority of New York & New Jersey, Refunding ARB, AMT: | | | | | | | | |
Consolidated, 186th Series, 5.00%, 10/15/36 | | | 470 | | | | 510,176 | |
Consolidated,186th Series, 5.00%, 10/15/44 | | | 950 | | | | 1,014,068 | |
State of New York Power Authority, Refunding RB, Series A, 4.00%, 11/15/60(h) | | | 350 | | | | 369,043 | |
Westchester Tobacco Asset Securitization Corp., Refunding RB, Tobacco Settlement Bonds,Sub-Series C, 5.13%, 06/01/51 | | | 1,160 | | | | 1,055,936 | |
| | | | | | | | |
| | | | | | | 9,915,002 | |
| | |
| 16 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| North Carolina — 0.4% | |
North Carolina Medical Care Commission, RB, Novant Health Obligated Group, 4.00%, 11/01/52 | | $ | 630 | | | $ | 655,610 | |
North Carolina Turnpike Authority, RB, Senior Lien, Triangle Express Way System: | | | | | | | | |
4.00%, 01/01/55 | | | 155 | | | | 138,737 | |
(AGM), 4.00%, 01/01/55 | | | 110 | | | | 112,329 | |
| | | | | | | | |
| | | | | | | 906,676 | |
|
| 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 | | | | 752,875 | |
| | | | | | | | |
|
| Ohio — 4.5% | |
Buckeye Tobacco Settlement Financing Authority, Refunding RB, Senior, Class 2,Series B-2, 5.00%, 06/01/55 | | | 3,495 | | | | 3,091,957 | |
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 | | | | 3,073,800 | |
County of Butler Port Authority, RB,Series A-1(a): | | | | | | | | |
Storypoint Fairfield Project, 6.25%, 01/15/34 | | | 500 | | | | 473,930 | |
StoryPoint Fairfield Project, 6.38%, 01/15/43 | | | 275 | | | | 251,619 | |
County of Montgomery Ohio, Refunding RB, Premier Health Partners Obligated Group, 4.00%, 11/15/42 | | | 1,050 | | | | 881,349 | |
Ohio Air Quality Development Authority, RB, AMG Vanadium Project, AMT, 5.00%, 07/01/49(a) | | | 650 | | | | 590,551 | |
Ohio Housing Finance Agency, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 09/01/48 | | | 50 | | | | 51,774 | |
State of Ohio, Refunding RB, University Hospitals Health System, Series A, 5.00%, 01/15/41 | | | 3,010 | | | | 3,109,992 | |
| | | | | | | | |
| | | | | | | 11,524,972 | |
|
| Oklahoma — 0.9% | |
City of Oklahoma Public Property Authority, Refunding RB: | | | | | | | | |
5.00%, 10/01/36 | | | 800 | | | | 906,000 | |
5.00%, 10/01/39 | | | 280 | | | | 314,149 | |
City of Oklahoma Turnpike Authority, RB, Series A, 4.00%, 01/01/48 | | | 420 | | | | 454,264 | |
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.50%, 08/15/52 | | | 680 | | | | 715,611 | |
| | | | | | | | |
| | | | | | | 2,390,024 | |
|
| Oregon — 1.5% | |
Oregon Health & Science University, RB, Series A, 4.00%, 07/01/37 | | | 575 | | | | 633,133 | |
State of Oregon Housing & Community Services Department, RB, S/F Housing, Mortgage Program, Series C, 3.95%, 07/01/43 | | | 620 | | | | 647,788 | |
State of Oregon State Facilities Authority, Refunding RB, University of Portland Project, Series A, 5.00%, 04/01/45 | | | 2,485 | | | | 2,644,313 | |
| | | | | | | | |
| | | | | | | 3,925,234 | |
|
| Pennsylvania — 9.9% | |
City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB, Series B, AMT, 5.00%, 07/01/35 | | | 575 | | | | 616,636 | |
Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment (AGM), 4.00%, 06/01/39 | | | 2,785 | | | | 2,930,210 | |
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49 | | | 565 | | | | 568,418 | |
Delaware River Port Authority, RB, 4.50%, 01/01/32 | | | 3,000 | | | | 3,276,420 | |
Mckeesport Area School District, GO, CAB, Refunding (NPFGC), 0.00%, 10/01/31(d)(i) | | | 500 | | | | 380,950 | |
Pennsylvania Economic Development Financing Authority, RB: | | | | | | | | |
Pennsylvania Rapid Bridge Replacement, 5.00%, 12/31/38 | | | 1,610 | | | | 1,628,547 | |
Series A-1, 4.00%, 04/15/50 | | | 780 | | | | 790,585 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Pennsylvania (continued) | |
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44 | | $ | 810 | | | $ | 695,077 | |
Pennsylvania Higher Education Assistance Agency, RB, AMT, Series B, 3.00%, 06/01/47 | | | 155 | | | | 129,667 | |
Pennsylvania Housing Finance Agency, RB, S/F Housing: | | | | | | | | |
Series 127-B, 3.88%, 10/01/38 | | | 670 | | | | 709,764 | |
Series 128B, 3.85%, 04/01/38 | | | 1,505 | | | | 1,603,412 | |
Pennsylvania Turnpike Commission, RB: | | | | | | | | |
Series C, 5.00%, 12/01/39 | | | 850 | | | | 914,897 | |
Sub-Series A-1, 5.00%, 12/01/41 | | | 2,735 | | | | 2,954,949 | |
Subordinate, Series A, 4.00%, 12/01/49 | | | 710 | | | | 727,054 | |
Pottsville Hospital Authority, Refunding RB, Lehigh Valley Health Network, Series B, 5.00%, 07/01/45 | | | 2,000 | | | | 2,155,360 | |
School District of Philadelphia, Refunding, GOL, Series F, 5.00%, 09/01/37 | | | 800 | | | | 910,232 | |
State Public School Building Authority, Refunding RB, The School District of Philadelphia Project, Series A, 5.00%, 06/01/34 | | | 3,825 | | | | 4,432,869 | |
| | | | | | | | |
| | | | | | | 25,425,047 | |
|
| Puerto Rico — 5.7% | |
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds: | | | | | | | | |
5.50%, 05/15/39 | | | 495 | | | | 495,391 | |
5.63%, 05/15/43 | | | 530 | | | | 522,103 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A: | | | | | | | | |
5.00%, 07/01/33 | | | 2,145 | | | | 2,037,428 | |
5.13%, 07/01/37 | | | 615 | | | | 580,677 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A: | | | | | | | | |
6.00%, 07/01/38 | | | 630 | | | | 624,784 | |
6.00%, 07/01/44 | | | 1,140 | | | | 1,139,795 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured: | | | | | | | | |
CAB,Series A-1, 0.00%, 07/01/46(d) | | | 1,362 | | | | 313,205 | |
Series A-1, 4.75%, 07/01/53 | | | 1,372 | | | | 1,235,939 | |
Series A-1, 5.00%, 07/01/58 | | | 5,829 | | | | 5,444,403 | |
Series A-2, 4.33%, 07/01/40 | | | 861 | | | | 768,959 | |
Series A-2, 4.78%, 07/01/58 | | | 1,459 | | | | 1,313,377 | |
| | | | | | | | |
| | | | | | | 14,476,061 | |
|
| Rhode Island — 3.1% | |
Rhode Island Health & Educational Building Corp., Refunding RB, Series A (AGM), 3.75%, 05/15/32 | | | 1,845 | | | | 1,980,183 | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.00%, 06/01/40 | | | 1,000 | | | | 1,031,620 | |
Series B, 4.50%, 06/01/45 | | | 2,725 | | | | 2,777,729 | |
Series B, 5.00%, 06/01/50 | | | 2,000 | | | | 2,090,120 | |
| | | | | | | | |
| | | | | | | 7,879,652 | |
|
| South Carolina — 1.9% | |
South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/38 | | | 1,895 | | | | 2,067,786 | |
South Carolina Jobs-Economic Development Authority, RB, Hilton Head Christian Academy, 5.00%, 01/01/55(a) | | | 755 | | | | 586,862 | |
State of South Carolina Public Service Authority, RB, Series E, 5.00%, 12/01/48 | | | 2,125 | | | | 2,195,125 | |
| | | | | | | | |
| | | | | | | 4,849,773 | |
|
| Tennessee — 3.2% | |
Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(b) | | | 2,945 | | | | 3,262,883 | |
City of Johnson Health & Educational Facilities Board, RB, Mountain States Health, Series A, 5.00%, 08/15/42 | | | 1,200 | | | | 1,220,208 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 17 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Tennessee (continued) | |
County of Chattanooga-Hamilton Tennessee Hospital Authority, Refunding RB, Series A, 5.00%, 10/01/44 | | $ | 875 | | | $ | 879,699 | |
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40 | | | 1,075 | | | | 1,164,332 | |
Greeneville Health & Educational Facilities Board, Refunding RB, Ballad Health Obligation Group, Series A, 4.00%, 07/01/40 | | | 615 | | | | 592,356 | |
Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/46 | | | 945 | | | | 1,016,943 | |
| | | | | | | | |
| | | | | | | 8,136,421 | |
|
| Texas — 11.3% | |
Brazos Higher Education Authority, Inc., RB, Subordinate, Student Loan Program, Series 1B (AMT), 3.00%, 04/01/40 | | | 105 | | | | 88,849 | |
Central Texas Turnpike System, RB, Series C: | | | | | | | | |
5.00%, 08/15/37 | | | 1,970 | | | | 2,014,857 | |
5.00%, 08/15/42 | | | 1,480 | | | | 1,534,819 | |
County of Harris Texas-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC) (AGM), 0.00%, 11/15/38(d) | | | 5,000 | | | | 2,186,650 | |
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 | | | | 7,989,461 | |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/35 | | | 440 | | | | 502,181 | |
Leander ISD, GO, Refunding CAB, Series D (PSF-GTD)(d): | | | | | | | | |
0.00%, 08/15/24(b) | | | 550 | | | | 311,262 | |
0.00%, 08/15/35 | | | 5,450 | | | | 2,996,355 | |
North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49 | | | 930 | | | | 1,005,683 | |
Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/23(b) | | | 1,140 | | | | 1,279,034 | |
Texas Department of Housing & Community Affairs, RB, S/F Housing Mortgage, Series A (Ginnie Mae), 4.25%, 09/01/43 | | | 300 | | | | 320,613 | |
Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements, 5.00%, 12/15/32 | | | 2,080 | | | | 2,154,110 | |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, 7.00%, 06/30/40 | | | 3,000 | | | | 3,007,260 | |
Texas Transportation Commission, RB, First Tier Toll Revenue(d): | | | | | | | | |
0.00%, 08/01/35 | | | 420 | | | | 213,910 | |
0.00%, 08/01/36 | | | 235 | | | | 113,684 | |
0.00%, 08/01/37 | | | 305 | | | | 140,035 | |
0.00%, 08/01/38 | | | 315 | | | | 136,874 | |
0.00%, 08/01/44 | | | 1,370 | | | | 428,358 | |
0.00%, 08/01/45 | | | 1,800 | | | | 534,222 | |
University of Texas System, Refunding RB, Series A, 3.50%, 08/15/50 | | | 1,545 | | | | 1,922,135 | |
| | | | | | | | |
| | | | | | | 28,880,352 | |
|
| Utah — 0.6% | |
State of Utah Charter School Finance Authority, Refunding RB: | | | | | | | | |
Mountainville Academy, 4.00%, 04/15/42 | | | 600 | | | | 622,896 | |
The Freedom Academy Foundation Project, 5.25%, 06/15/37(a) | | | 205 | | | | 187,850 | |
The Freedom Academy Foundation Project, 5.38%, 06/15/48(a) | | | 260 | | | | 226,652 | |
Utah Housing Corp., RB, S/F Housing, Class III,Series D-2 (FHA), 4.00%, 01/01/36 | | | 435 | | | | 471,601 | |
| | | | | | | | |
| | | | | | | 1,508,999 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Vermont — 0.2% | |
Vermont Student Assistance Corp., RB, AMT, Series A, 4.25%, 06/15/32 | | $ | 455 | | | $ | 463,604 | |
| | | | | | | | |
|
| Virginia — 2.1% | |
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A, 5.38%, 03/01/36 | | | 780 | | | | 719,293 | |
Tobacco Settlement Financing Corp., Refunding RB, SeniorSeries B-1, 5.00%, 06/01/47 | | | 1,030 | | | | 975,925 | |
Virginia Housing Development Authority, RB, Series E, 3.15%, 12/01/49 | | | 1,515 | | | | 1,473,050 | |
Virginia Small Business Financing Authority, RB, AMT: | | | | | | | | |
Covanta Project, 5.00%, 01/01/48(a)(e) | | | 745 | | | | 697,491 | |
Senior Lien, Elizabeth River Crossings OpCo LLC Project, 6.00%, 01/01/37 | | | 1,440 | | | | 1,484,395 | |
| | | | | | | | |
| | | | | | | 5,350,154 | |
|
| Washington — 0.3% | |
Port of Seattle Washington, ARB, Series A, AMT, 5.00%, 05/01/43 | | | 625 | | | | 677,669 | |
| | | | | | | | |
|
| 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 | | | | 745,060 | |
| | | | | | | | |
|
| Wisconsin — 0.7% | |
Public Finance Authority, Refunding RB, National Gypsum Co., AMT, 4.00%, 08/01/35 | | | 435 | | | | 364,221 | |
WPPI Energy Power Supply Systems, Refunding RB, Series A, 5.00%, 07/01/37 | | | 1,330 | | | | 1,461,311 | |
| | | | | | | | |
| |
| | | | 1,825,532 | |
| | | | | | | | |
| |
Total Municipal Bonds — 131.7%
(Cost — $318,481,431) | | | | 336,969,622 | |
| | | | | | | | |
|
Municipal Bonds Transferred to Tender Option Bond Trusts — 36.2%(j) | |
|
| California — 0.5% | |
Los Angeles California Unified School District, GO, Election of 2008,Series B-1, 5.25%, 07/01/42(k) | | | 1,182 | | | | 1,401,321 | |
| | | | | | | | |
| | | | | | | 1,401,321 | |
|
| Colorado — 0.8% | |
City & County of Denver Colorado Airport System Revenue, Refunding ARB, Subordinate System, Series A, AMT, 5.25%, 12/01/48(k) | | | 1,769 | | | | 1,975,328 | |
| | | | | | | | |
|
| Connecticut — 1.7% | |
State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45 | | | 3,902 | | | | 4,228,630 | |
| | | | | | | | |
|
| District of Columbia — 0.9% | |
District of Columbia Housing Finance Agency, RB, M/F Housing,Series B-2 (FHA), 4.10%, 09/01/39 | | | 2,102 | | | | 2,283,164 | |
| | | | | | | | |
|
| Florida — 1.7% | |
County of Pinellas Florida School Board, COP, Master Lease Program, Series A, 5.00%, 07/01/41 | | | 2,120 | | | | 2,447,010 | |
Greater Orlando Aviation Authority, ARB, Series A, AMT, 4.00%, 10/01/49 | | | 1,860 | | | | 1,887,026 | |
| | | | | | | | |
| | | | | | | 4,334,036 | |
|
| Georgia — 0.6% | |
Georgia Housing & Finance Authority, Refunding RB, S/F Mortgage Bonds, Series A, 3.70%, 06/01/49 | | | 1,581 | | | | 1,622,995 | |
| | | | | | | | |
|
| Louisiana — 0.5% | |
State of Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, First Lien, Series A, 4.00%, 05/01/41 | | | 1,200 | | | | 1,276,320 | |
| | | | | | | | |
| | |
| 18 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Maine — 0.3% | |
State of Maine Housing Authority, RB, M/F Housing, Series E, 4.15%, 11/15/38 | | $ | 719 | | | $ | 774,917 | |
| | | | | | | | |
|
| Maryland — 1.2% | |
State of Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/42 | | | 2,760 | | | | 3,204,222 | |
| | | | | | | | |
|
| Massachusetts — 1.4% | |
Commonwealth of Massachusetts, GO, Series A, 5.00%, 01/01/46 | | | 3,018 | | | | 3,536,061 | |
| | | | | | | | |
|
| Michigan — 2.0% | |
Michigan Finance Authority, RB, Multi Model- McLaren Health Care, 4.00%, 02/15/47 | | | 2,759 | | | | 2,851,944 | |
State of Michigan Housing Development Authority, RB, M/F Housing, Series A, 4.05%, 10/01/48 | | | 2,142 | | | | 2,267,091 | |
| | | | | | | | |
| | | | | | | 5,119,035 | |
|
| Minnesota — 2.2% | |
State of Minnesota, RB, Series A, 5.00%, 06/01/38 | | | 5,000 | | | | 5,521,749 | |
| | | | | | | | |
|
| Nebraska — 0.7% | |
Nebraska Investment Finance Authority, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 3.70%, 03/01/47 | | | 1,665 | | | | 1,745,190 | |
| | | | | | | | |
|
| Nevada — 1.1% | |
County of Clark Nevada, GOL, Stadium Improvement, Series A, 5.00%, 06/01/38 | | | 2,311 | | | | 2,749,950 | |
| | | | | | | | |
|
| New Jersey — 1.8% | |
New Jersey State Turnpike Authority, Refunding RB, Series G, 4.00%, 01/01/43 | | | 1,606 | | | | 1,698,932 | |
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36 | | | 2,861 | | | | 2,866,238 | |
| | | | | | | | |
| | | | | | | 4,565,170 | |
|
| New York — 9.9% | |
City of New York, GO, Refunding, Fiscal 2015, Series B, 4.00%, 08/01/32 | | | 1,600 | | | | 1,707,408 | |
City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 11/01/38 | | | 1,650 | | | | 1,763,685 | |
City of New York Transitional Finance Authority, BARB,Series S-1, 4.00%, 07/15/42(k) | | | 2,145 | | | | 2,198,389 | |
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2013: | | | | | | | | |
Series BB, 4.00%, 06/15/47 | | | 6,000 | | | | 6,194,100 | |
Series CC, 5.00%, 06/15/47 | | | 4,000 | | | | 4,421,541 | |
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012: | | | | | | | | |
5.75%, 02/15/21(b)(k) | | | 1,083 | | | | 1,121,569 | |
5.75%, 02/15/47(k) | | | 666 | | | | 689,955 | |
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43 | | | 4,500 | | | | 4,718,793 | |
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 03/15/31 | | | 2,360 | | | | 2,467,663 | |
| | | | | | | | |
| | | | | | | 25,283,103 | |
|
| Ohio — 0.7% | |
Northeast Ohio Regional Sewer District, Refunding RB, 4.00%, 11/15/49(k) | | | 1,800 | | | | 1,913,058 | |
| | | | | | | | |
|
| Pennsylvania — 1.4% | |
Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/36(k) | | | 2,399 | | | | 2,647,891 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Pennsylvania (continued) | |
Philadelphia Authority for Industrial Development, RB, Childrens Hospital of Philadelphia Project, Series A, 4.00%, 07/01/44 | | $ | 914 | | | $ | 944,344 | |
| | | | | | | | |
| | | | | | | 3,592,235 | |
|
| Rhode Island — 1.1% | |
Rhode Island Housing & Mortgage Finance Corp., Refunding RB, S/F Housing, Home Ownership Opportunity Bonds,Series 69-B (Ginnie Mae, Fannie Mae & Freddie Mac): | | | | | | | | |
3.55%, 10/01/33 | | | 2,040 | | | | 2,168,051 | |
3.95%, 10/01/43 | | | 673 | | | | 766,119 | |
| | | | | | | | |
| | | | | | | 2,934,170 | |
|
| Texas — 4.8% | |
Aldine Independent School District, GO, Refunding(PSF-GTD), 5.00%, 02/15/42 | | | 2,609 | | | | 3,064,121 | |
City of Houston Texas Community College, GO, Limited Tax, 4.00%, 02/15/43 | | | 2,160 | | | | 2,253,182 | |
City of San Antonio Texas Electric & Gas Systems Revenue, RB, Junior Lien, 5.00%, 02/01/43 | | | 2,380 | | | | 2,589,273 | |
Howe Independent School District, GO, School Building (PSF-GTD), 4.00%, 08/15/43 | | | 1,680 | | | | 1,842,540 | |
San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project, 4.00%, 09/15/42 | | | 1,409 | | | | 1,463,485 | |
Texas Department of Housing & Community Affairs, RB, S/F Housing, Series A (Ginnie Mae): | | | | | | | | |
3.63%, 09/01/44 | | | 699 | | | | 750,926 | |
3.75%, 09/01/49 | | | 383 | | | | 411,699 | |
| | | | | | | | |
| | | | | | | 12,375,226 | |
|
| Washington — 0.9% | |
Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.13%, 08/15/43 | | | 2,213 | | | | 2,308,039 | |
| | | | | | | | |
| |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 36.2%
(Cost — $89,828,960) | | | | 92,743,919 | |
| | | | | | | | |
| |
TotalLong-Term Investments — 167.9%
(Cost — $408,310,391) | | | | 429,713,541 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
|
| Short-Term Securities — 1.6% | |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.15%(l)(m) | | | 4,003,098 | | | | 4,003,899 | |
| | | | | | | | |
| |
TotalShort-Term Securities — 1.6%
(Cost — $4,003,373) | | | | 4,003,899 | |
| | | | | | | | |
| |
Total Investments — 169.5%
(Cost — $412,313,764) | | | | 433,717,440 | |
| |
Other Assets Less Liabilities — 1.7% | | | | 4,441,813 | |
| |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (22.0)% | | | | (56,374,971 | ) |
| |
VMTP Shares, at Liquidation Value — (49.2)% | | | | (125,900,000 | ) |
| | | | | | | | |
| |
Net Assets Applicable to Common Shares — 100.0% | | | $ | 255,884,282 | |
| | | | | | | | |
| (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. |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 19 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Investment Quality Municipal Trust, Inc. (BKN) |
| (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) | Non-income producing security. |
| (g) | Issuer filed for bankruptcy and/or is in default. |
| (h) | When-issued security. |
| (i) | Security is collateralized by municipal bonds or U.S. Treasury obligations. |
| (j) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (k) | All or a portion of 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 August 15, 2020 to June 01, 2026, is $7,331,721. See Note 4 of the Notes to Financial Statements for details. |
| (l) | Annualized 7-day yield as of period end. |
| (m) | Investments in issuers considered to be an affiliate/affiliates of the Trust during the year ended April 30, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliated Issuer | | Shares
Held at
04/30/19 | | | Shares
Purchased | | | Shares
Sold | | | Shares
Held at
04/30/20 | | | Value at
04/30/20 | | | Income | | | Net
Realized
Gain (Loss) (a) | | | Change in
Unrealized
Appreciation
(Depreciation) | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | 903,538 | | | | 3,099,560 | (b) | | | — | | | | 4,003,098 | | | $ | 4,003,899 | | | $ | 14,579 | | | $ | 3,034 | | | $ | 526 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes net capital gain distributions, if applicable. | |
| | (b) | Represents net shares purchased(sold). | |
Derivative Financial Instruments Categorized by Risk Exposure
For the year ended April 30, 2020, 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 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (4,804,290 | ) | | $ | — | | | $ | (4,804,290 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 165,984 | | | $ | — | | | $ | 165,984 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | | | | |
Average notional value of contracts — long | | $ | — | (a) |
Average notional value of contracts — short | | | 16,068,395 | |
| | (a) | Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period. | |
For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
| | |
| 20 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | 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. For information about the Trust’s policy regarding valuation of investments, refer to the Notes to Financial Statements.
The following tables summarize the Trust’s investments categorized in the disclosure hierarchy:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | | | | |
Long-Term Investments(a) | | $ | — | | | $ | 429,713,541 | | | $ | — | | | $ | 429,713,541 | |
Short-Term Securities | | | 4,003,899 | | | | — | | | | — | | | | 4,003,899 | |
| | | | | | | | | | | | | | | | |
| | $ | 4,003,899 | | | $ | 429,713,541 | | | $ | — | | | $ | 433,717,440 | |
| | | | | | | | | | | | | | | | |
| | (a) | See above Schedule of Investments for values in each state or political subdivision. | |
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 | | $ | — | | | $ | (56,112,087 | ) | | $ | — | | | $ | (56,112,087 | ) |
VMTP Shares at Liquidation Value | | | — | | | | (125,900,000 | ) | | | — | | | | (125,900,000 | ) |
| | | | | | | | | | | | | | | | |
| | $ | — | | | $ | (182,012,087 | ) | | $ | — | | | $ | (182,012,087 | ) |
| | | | | | | | | | | | | | | | |
See notes to financial statements.
| | | | |
| SCHEDULES OF INVESTMENTS | | | 21 | |
| | |
Schedule of Investments April 30, 2020 | | BlackRockLong-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| | |
Municipal Bonds — 130.5% | | | | | | | | |
|
| Alabama — 1.9% | |
County of Jefferson Alabama Sewer, Refunding RB,Sub-Lien, Series D, 6.00%, 10/01/42 | | $ | 1,655 | | | $ | 1,865,086 | |
County of Tuscaloosa IDA, Refunding RB, Hunt Refining Project, Series A(a): | | | | | | | | |
4.50%, 05/01/32 | | | 180 | | | | 165,541 | |
5.25%, 05/01/44 | | | 230 | | | | 220,618 | |
Madison Water & Wastewater Board, RB, 3.00%, 12/01/50 | | | 615 | | | | 609,256 | |
| | | | | | | | |
| | | | | | | 2,860,501 | |
|
| Alaska — 0.7% | |
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 06/01/46 | | | 1,045 | | | | 1,023,640 | |
| | | | | | | | |
|
| Arizona — 3.7% | |
Arizona IDA, RB, Doral Academy of Nevada — Fire Mesa & Red Rock Campus Projects, Series A, 5.00%, 07/15/39(a) | | | 250 | | | | 230,305 | |
Arizona IDA, Refunding RB, Series A(a): | | | | | | | | |
Basis Schools, Inc. Projects, 5.13%, 07/01/37 | | | 360 | | | | 337,392 | |
Basis Schools, Inc. Projects, 5.38%, 07/01/50 | | | 925 | | | | 842,934 | |
Odyssey Preparatory Academy Project, 5.50%, 07/01/52 | | | 855 | | | | 756,410 | |
Arizona Industrial Development Authority, Refunding RB, Series G, 5.00%, 07/01/47(a) | | | 135 | | | | 117,450 | |
City of Phoenix Arizona IDA, RB, Series A: | | | | | | | | |
Facility, Eagle College Preparatory Project, 5.00%, 07/01/33 | | | 870 | | | | 809,056 | |
Legacy Traditional Schools Projects, 5.00%, 07/01/46(a) | | | 1,255 | | | | 1,145,237 | |
City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A,
5.00%, 07/01/35(a) | | | 125 | | | | 117,669 | |
County of Maricopa IDA, Refunding RB, Honor health, Series A, 4.13%, 09/01/38 | | | 375 | | | | 395,074 | |
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37 | | | 725 | | | | 894,643 | |
| | | | | | | | |
| | | | | | | 5,646,170 | |
|
| Arkansas — 0.5% | |
Arkansas Development Finance Authority, RB, Big River Steel Project, AMT, 4.50%, 09/01/49(a) | | | 925 | | | | 789,904 | |
| | | | | | | | |
|
| California — 5.9% | |
California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A: | | | | | | | | |
5.25%, 08/15/39 | | | 70 | | | | 75,603 | |
5.25%, 08/15/49 | | | 175 | | | | 185,451 | |
City & County of San Francisco California Redevelopment Agency, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Series D, 0.00%, 08/01/31(a)(b) | | | 1,265 | | | | 708,640 | |
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior, Series A, 5.00%, 05/15/40 | | | 800 | | | | 801,472 | |
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/23(c) | | | 165 | | | | 194,916 | |
County of California Tobacco Securitization Agency, Refunding RB, Golden Gate Tobacco Funding Corp., Series A, 5.00%, 06/01/47 | | | 140 | | | | 134,420 | |
County of Los Angeles California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.(d): | | | | | | | | |
5.70%, 06/01/46 | | | 1,000 | | | | 999,990 | |
5.60%, 06/01/36 | | | 2,000 | | | | 1,999,980 | |
Golden State Tobacco Securitization Corp., Refunding RB,Series A-2, 5.00%, 06/01/47 | | | 535 | | | | 521,935 | |
San Marcos Unified School District, GO, CAB, SAN, Election of 2010, Series B, 0.00%, 08/01/38(b) | | | 3,725 | | | | 2,174,618 | |
State of California, GO, Refunding, Various Purposes, 4.00%, 03/01/40 | | | 655 | | | | 731,805 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| California (continued) | |
State of California Public Works Board, LRB, Various Capital Projects, Series I, 5.00%, 11/01/38 | | $ | 355 | | | $ | 386,414 | |
| | | | | | | | |
| | | | | | | 8,915,244 | |
|
| Colorado — 1.8% | |
Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47(a) | | | 275 | | | | 229,119 | |
Denver Convention Center Hotel Authority, Refunding RB, 5.00%, 12/01/40 | | | 1,550 | | | | 1,549,969 | |
Table Mountain Metropolitan District, GO, Series A, 5.25%, 12/01/45 | | | 991 | | | | 925,901 | |
| | | | | | | | |
| | | | | | | 2,704,989 | |
|
| Connecticut — 0.6% | |
Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 02/01/30(a) | | | 860 | | | | 889,231 | |
| | | | | | | | |
|
| Delaware — 2.3% | |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 | | | 750 | | | | 758,617 | |
State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45 | | | 2,670 | | | | 2,670,561 | |
| | | | | | | | |
| | | | | | | 3,429,178 | |
|
| District of Columbia — 1.3% | |
District of Columbia, Refunding RB, Kipp Charter School, Series A, 6.00%, 07/01/23(c) | | | 260 | | | | 299,047 | |
District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 06/01/41 | | | 750 | | | | 777,667 | |
Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Refunding RB, Subordinate, Dulles Metrorail and Capital Improvement Projects, 4.00%, 10/01/49 | | | 870 | | | | 823,542 | |
| | | | | | | | |
| | | | | | | 1,900,256 | |
|
| Florida — 5.8% | |
Capital Region Community Development District, Refunding, Special Assessment, Capital Improvement: | | | | | | | | |
Revenue Bond,Series A-1, 5.13%, 05/01/39 | | | 210 | | | | 188,057 | |
Series A-2, 4.60%, 05/01/31 | | | 515 | | | | 474,181 | |
Capital Trust Agency, Inc., RB, Paragon Academy of Technology and Sunshine, Series A, 5.75%, 06/01/54(a) | | | 450 | | | | 372,991 | |
County of Charlotte Florida IDA, RB, Town & Country Utilities Project, AMT(a): | | | | | | | | |
5.00%, 10/01/34 | | | 120 | | | | 114,550 | |
5.00%, 10/01/49 | | | 560 | | | | 483,286 | |
County of Osceola Florida Transportation Revenue, Refunding RB,Series A-2(b): | | | | | | | | |
0.00%, 10/01/46 | | | 775 | | | | 260,276 | |
0.00%, 10/01/47 | | | 745 | | | | 239,666 | |
0.00%, 10/01/48 | | | 525 | | | | 161,653 | |
0.00%, 10/01/49 | | | 435 | | | | 128,086 | |
Florida Development Finance Corp., RB, Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 08/01/29(a)(e) | | | 740 | | | | 739,660 | |
Lakewood Ranch Stewardship District, Special Assessment Bonds, Northeast Sector Project — Phase 1B, Village of Lakewood Ranch Sector Projects: | | | | | | | | |
5.30%, 05/01/39 | | | 310 | | | | 323,401 | |
4.75%, 05/01/29 | | | 270 | | | | 266,863 | |
5.45%, 05/01/48 | | | 550 | | | | 572,797 | |
Lakewood Ranch Stewardship District Special Assessment Bonds: | | | | | | | | |
4.00%, 05/01/21 | | | 54 | | | | 53,929 | |
4.25%, 05/01/26 | | | 100 | | | | 101,090 | |
5.13%, 05/01/46 | | | 380 | | | | 341,153 | |
| | |
| 22 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRockLong-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Florida (continued) | |
Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(c) | | $ | 1,080 | | | $ | 1,175,224 | |
Tolomato Community Development District, Refunding, Special Assessment Bonds(d): | | | | | | | | |
Convertible CAB, Series A4, 0.00%, 05/01/40 | | | 120 | | | | 98,567 | |
Series 2015-2, 0.00%, 05/01/40 | | | 310 | | | | 177,078 | |
Tolomato Community Development District(f)(g): | | | | | | | | |
Series 1, 0.00%, 05/01/40(d) | | | 505 | | | | 378,063 | |
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 | | | | 577,792 | |
5.00%, 05/01/28 | | | 160 | | | | 165,168 | |
Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 05/01/43 | | | 765 | | | | 777,990 | |
West Villages Improvement District, Special Assessment Bonds: | | | | | | | | |
4.75%, 05/01/39 | | | 220 | | | | 201,280 | |
5.00%, 05/01/50 | | | 450 | | | | 395,212 | |
| | | | | | | | |
| | | | | | | 8,768,019 | |
|
| Georgia — 2.9% | |
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54 | | | 240 | | | | 262,318 | |
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49 | | | 1,270 | | | | 1,474,661 | |
Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project: | | | | | | | | |
4.00%, 01/01/49 | | | 865 | | | | 832,242 | |
4.00%, 01/01/59 | | | 1,640 | | | | 1,523,494 | |
Municipal Electric Authority of Georgia, Refunding RB, Series A, 4.00%, 01/01/49 | | | 320 | | | | 307,882 | |
| | | | | | | | |
| | | | | | | 4,400,597 | |
|
| Illinois — 10.5% | |
Chicago Board of Education, GO, Series D: | | | | | | | | |
Dedicated Revenues, Series H, 5.00%, 12/01/36 | | | 935 | | | | 901,284 | |
Project, Series C, 5.25%, 12/01/35 | | | 795 | | | | 787,503 | |
Chicago Board of Education, GO, Refunding: | | | | | | | | |
Dedicated Revenues, Series C, 5.00%, 12/01/27 | | | 415 | | | | 420,150 | |
Dedicated Revenues, Series C, 5.00%, 12/01/34 | | | 940 | | | | 912,514 | |
Dedicated Revenues, Series F, 5.00%, 12/01/22 | | | 325 | | | | 330,886 | |
Series C, 5.00%, 12/01/25 | | | 350 | | | | 357,227 | |
Chicago Board of Education, GO: | | | | | | | | |
5.00%, 12/01/46 | | | 290 | | | | 261,032 | |
5.00%, 12/01/46 | | | 745 | | | | 644,365 | |
City of Chicago Illinois, GO, Refunding, Series A, 6.00%, 01/01/38 | | | 595 | | | | 609,518 | |
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series A, 5.75%, 01/01/39 | | | 400 | | | | 408,132 | |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 | | | 360 | | | | 378,529 | |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38 | | | 350 | | | | 354,704 | |
Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 5.00%, 02/15/41 | | | 1,500 | | | | 1,691,205 | |
Metropolitan Pier & Exposition Authority, RB, Series A, McCormick Place Expansion Project: | | | | | | | | |
Bonds, 5.00%, 06/15/57 | | | 555 | | | | 494,239 | |
5.50%, 06/15/53 | | | 200 | | | | 194,454 | |
Metropolitan Pier & Exposition Authority, Refunding RB: | | | | | | | | |
McCormick Place Expansion Project, 4.00%, 06/15/50 | | | 570 | | | | 474,645 | |
McCormick Place Expansion Project, Series B (AGM), 5.00%, 06/15/50 | | | 1,790 | | | | 1,794,296 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Illinois (continued) | |
McCormick Place Expansion Project,Series B-2, 5.00%, 06/15/50 | | $ | 1,400 | | | $ | 1,400,042 | |
McCormik Place Expansion Project, Series B, 5.00%, 06/15/52 | | | 225 | | | | 203,913 | |
State of Illinois, GO: | | | | | | | | |
5.00%, 05/01/27 | | | 500 | | | | 491,785 | |
5.00%, 01/01/28 | | | 1,005 | | | | 984,910 | |
5.00%, 03/01/37 | | | 755 | | | | 675,378 | |
Series A, 5.00%, 01/01/33 | | | 555 | | | | 516,028 | |
University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44 | | | 475 | | | | 491,872 | |
| | | | | | | | |
| | | | | | | 15,778,611 | |
|
| Indiana — 5.6% | |
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT: | | | | | | | | |
6.75%, 01/01/34 | | | 365 | | | | 381,921 | |
7.00%, 01/01/44 | | | 885 | | | | 927,392 | |
City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village Project, 6.25%, 01/01/29(a) | | | 960 | | | | 960,653 | |
County of Allen Indiana, RB, Story Point Fort Wayne Project,Series A-1(a): | | | | | | | | |
6.63%, 01/15/34 | | | 135 | | | | 133,458 | |
6.75%, 01/15/43 | | | 200 | | | | 191,456 | |
6.88%, 01/15/52 | | | 560 | | | | 529,810 | |
Indiana Finance Authority, RB, Series A: | | | | | | | | |
CWA Authority Project, 1st Lien, 5.25%, 10/01/38 | | | 1,285 | | | | 1,352,861 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44 | | | 160 | | | | 163,749 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48 | | | 520 | | | | 533,728 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51 | | | 2,190 | | | | 2,243,699 | |
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40 | | | 445 | | | | 485,250 | |
Town of Chesterton Indiana, RB, Story Point Chesterton Project,Series A-1, 6.38%, 01/15/51(a) | | | 560 | | | | 497,017 | |
| | | | | | | | |
| | | | | | | 8,400,994 | |
|
| Iowa — 1.7% | |
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project: | | | | | | | | |
Series B, 5.25%, 12/01/50(e) | | | 825 | | | | 786,605 | |
Midwestern Disaster Area, 5.25%, 12/01/25 | | | 660 | | | | 656,746 | |
Iowa Student Loan Liquidity Corp., Refunding RB, AMT, Series B, 3.00%, 12/01/39 | | | 1,175 | | | | 1,105,839 | |
| | | | | | | | |
| | | | | | | 2,549,190 | |
|
| Kentucky — 0.7% | |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(c) | | | 460 | | | | 506,326 | |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 07/01/43(d) | | | 565 | | | | 527,925 | |
| | | | | | | | |
| | | | | | | 1,034,251 | |
|
| Louisiana — 2.7% | |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB: | | | | | | | | |
S/F Housing, University of Louisiana Monroe Project, 5.00%, 07/01/54(a) | | | 445 | | | | 382,446 | |
Westlake Chemical Corp. Project,Series A-1, 6.50%, 11/01/35 | | | 1,135 | | | | 1,149,267 | |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A: | | | | | | | | |
5.50%, 05/15/30 | | | 350 | | | | 350,490 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 23 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRockLong-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Louisiana (continued) | |
5.25%, 05/15/31 | | $ | 300 | | | $ | 308,046 | |
5.25%, 05/15/32 | | | 380 | | | | 399,145 | |
5.25%, 05/15/33 | | | 415 | | | | 435,667 | |
5.25%, 05/15/35 | | | 945 | | | | 1,001,917 | |
| | | | | | | | |
| | | | | | | 4,026,978 | |
|
| Maine — 0.7% | |
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 07/01/41 | | | 970 | | | | 993,464 | |
| | | | | | | | |
|
| Maryland — 1.2% | |
Maryland EDC, Refunding RB, CNX Marine Terminal, Inc., 5.75%, 09/01/25 | | | 645 | | | | 648,721 | |
Maryland Health & Higher Educational Facilities Authority, RB, Legends Charter School Project, 7.00%, 03/01/55(a) | | | 1,480 | | | | 1,155,377 | |
| | | | | | | | |
| | | | | | | 1,804,098 | |
|
| Massachusetts — 2.8% | |
Massachusetts Development Finance Agency, RB: | | | | | | | | |
Emerson College Issue, Series A, 5.00%, 01/01/47 | | | 860 | | | | 896,670 | |
North Hill Communities Issue, Series A,
6.50%, 11/15/23(a)(c) | | | 1,000 | | | | 1,195,590 | |
UMass Boston Student Housing Project, 5.00%, 10/01/48 | | | 945 | | | | 941,929 | |
Massachusetts Development Finance Agency, Refunding RB, Emmanuel College Issue, Series A, 5.00%, 10/01/35 | | | 500 | | | | 548,050 | |
Massachusetts HFA, Refunding RB, Series A, AMT, 4.45%, 12/01/42 | | | 625 | | | | 645,038 | |
| | | | | | | | |
| | | | | | | 4,227,277 | |
|
| Michigan — 2.4% | |
City of Detroit Michigan, GO: | | | | | | | | |
5.00%, 04/01/34 | | | 140 | | | | 139,608 | |
5.00%, 04/01/35 | | | 140 | | | | 139,440 | |
5.00%, 04/01/36 | | | 95 | | | | 94,405 | |
5.00%, 04/01/37 | | | 155 | | | | 153,752 | |
5.00%, 04/01/38 | | | 70 | | | | 69,266 | |
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39 | | | 1,970 | | | | 2,091,884 | |
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien,Series C-1, 5.00%, 07/01/44 | | | 410 | | | | 425,847 | |
Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.00%, 06/30/48 | | | 500 | | | | 503,505 | |
| | | | | | | | |
| | | | | | | 3,617,707 | |
|
| Minnesota — 2.2% | |
Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A: | | | | | | | | |
4.25%, 02/15/48 | | | 1,940 | | | | 1,970,710 | |
5.25%, 02/15/58 | | | 655 | | | | 712,968 | |
Housing & Redevelopment Authority of The City of State Paul Minnesota, Refunding RB, Hmong College Academy Project, Series A, 5.50%, 09/01/36 | | | 690 | | | | 684,521 | |
| | | | | | | | |
| | | | | | | 3,368,199 | |
|
| 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 | | | | 91,520 | |
City of St. Louis Missouri IDA, Refunding RB, BallPark Village Development Project, Series A: | | | | | | | | |
4.38%, 11/15/35 | | | 330 | | | | 310,467 | |
4.75%, 11/15/47 | | | 365 | | | | 330,289 | |
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43 | | | 115 | | | | 120,250 | |
| | | | | | | | |
| | | | | | | 852,526 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Nebraska — 0.2% | |
Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.25%, 09/01/37 | | $ | 285 | | | $ | 303,400 | |
| | | | | | | | |
|
| New Jersey — 10.6% | |
Casino Reinvestment Development Authority, Inc., Refunding RB: | | | | | | | | |
5.25%, 11/01/39 | | | 475 | | | | 457,093 | |
5.25%, 11/01/44 | | | 1,160 | | | | 1,078,359 | |
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(a) | | | 505 | | | | 506,202 | |
New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23 | | | 1,410 | | | | 1,401,822 | |
New Jersey EDA, RB, School Facilities Construction, Series EEE, 5.00%, 06/15/43 | | | 195 | | | | 189,170 | |
New Jersey EDA, Refunding RB, Series BBB, 5.50%, 06/15/31 | | | 1,225 | | | | 1,274,416 | |
New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31 | | | 785 | | | | 765,304 | |
New Jersey Higher Education Student Assistance Authority, Refunding RB,Sub-Series C, AMT, 3.63%, 12/01/49 | | | 645 | | | | 586,163 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
Transportation Program Bonds, Series S, 5.25%, 06/15/43 | | | 2,535 | | | | 2,540,552 | |
Transportation Program, Series AA, 5.00%, 06/15/45 | | | 585 | | | | 562,881 | |
Transportation System, Series B, 5.25%, 06/15/36 | | | 845 | | | | 846,648 | |
New Jersey Turnpike Authority, RB, Series A, 4.00%, 01/01/48 | | | 245 | | | | 255,209 | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.00%, 06/01/35 | | | 730 | | | | 815,658 | |
Series A, 5.25%, 06/01/46 | | | 1,700 | | | | 1,811,656 | |
Sub-Series B, 5.00%, 06/01/46 | | | 2,825 | | | | 2,840,029 | |
| | | | | | | | |
| | | | | | | 15,931,162 | |
|
| New York — 25.0% | |
City of New York, GO, Multi Modal,Series D-1, 4.00%, 03/01/44 | | | 615 | | | | 660,264 | |
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series HH, 5.00%, 06/15/31 | | | 2,830 | | | | 2,943,398 | |
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A: | | | | | | | | |
6.25%, 06/01/41(a) | | | 900 | | | | 897,750 | |
5.00%, 06/01/42 | | | 1,505 | | | | 1,456,479 | |
5.00%, 06/01/45 | | | 555 | | | | 522,211 | |
Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through,Series A-2B, 5.00%, 06/01/51 | | | 1,000 | | | | 873,730 | |
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45 | | | 910 | | | | 831,822 | |
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012: | | | | | | | | |
5.75%, 02/15/21(c) | | | 4,030 | | | | 4,186,928 | |
5.75%, 02/15/47 | | | 2,480 | | | | 2,552,639 | |
Metropolitan Transportation Authority, RB, Series B: | | | | | | | | |
5.25%, 11/15/38 | | | 1,125 | | | | 1,166,963 | |
5.25%, 11/15/39 | | | 400 | | | | 414,600 | |
New York City Transitional Finance Authority Future Tax Secured Revenue, RB,Series B-1, 4.00%, 11/01/45 | | | 5,000 | | | | 5,355,300 | |
New York Liberty Development Corp., RB, World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 | | | 6,140 | | | | 6,438,711 | |
New York Liberty Development Corp., Refunding RB: | | | | | | | | |
3 World Trade Center Project, Class 1, 5.00%, 11/15/44(a) | | | 2,355 | | | | 2,170,580 | |
3 World Trade Center Project, Class 2, 5.15%, 11/15/34(a) | | | 160 | | | | 153,366 | |
3 World Trade Center Project, Class 2, 5.38%, 11/15/40(a) | | | 395 | | | | 388,336 | |
4 World Trade Center Project, 5.75%, 11/15/51 | | | 2,220 | | | | 2,315,393 | |
New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 01/01/50 | | | 1,000 | | | | 1,019,500 | |
| | |
| 24 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRockLong-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| 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%, 12/01/42 | | $ | 730 | | | $ | 734,424 | |
State of New York Dormitory Authority, Refunding RB, Orange Regional Medical Center, 5.00%, 12/01/33(a) | | | 410 | | | | 441,160 | |
State of New York Power Authority, Refunding RB, Series A, 4.00%, 11/15/60(h) | | | 565 | | | | 595,742 | |
Westchester Tobacco Asset Securitization Corp., Refunding RB, Tobacco Settlement Bonds,Sub-Series C, 4.00%, 06/01/42 | | | 1,690 | | | | 1,430,585 | |
| | | | | | | | |
| | | | | | | 37,549,881 | |
|
| North Carolina — 0.4% | |
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21(c) | | | 260 | | | | 274,745 | |
North Carolina Turnpike Authority, RB, Senior Lien, Triangle Express Way System (AGM), 4.00%, 01/01/55 | | | 320 | | | | 326,774 | |
| | | | | | | | |
| | | | | | | 601,519 | |
|
| Ohio — 4.7% | |
Buckeye Tobacco Settlement Financing Authority, Refunding RB, Senior, Class 2,Series B-2, 5.00%, 06/01/55 | | | 6,070 | | | | 5,370,008 | |
Ohio Air Quality Development Authority, RB, AMG Vanadium Project, AMT, 5.00%, 07/01/49(a) | | | 400 | | | | 363,416 | |
State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53 | | | 1,220 | | | | 1,338,523 | |
| | | | | | | | |
| | | | | | | 7,071,947 | |
|
| Oklahoma — 2.5% | |
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B: | | | | | | | | |
5.00%, 08/15/38 | | | 1,450 | | | | 1,474,621 | |
5.25%, 08/15/43 | | | 1,305 | | | | 1,342,493 | |
Tulsa County Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/45 | | | 925 | | | | 886,113 | |
| | | | | | | | |
| | | | | | | 3,703,227 | |
|
| Oregon — 0.2% | |
County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38(b) | | | 625 | | | | 316,050 | |
| | | | | | | | |
|
| Pennsylvania — 2.2% | |
Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project, 5.00%, 05/01/42(a) | | | 470 | | | | 451,811 | |
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42 | | | 300 | | | | 310,479 | |
Pennsylvania Economic Development Financing Authority, RB, Pennsylvania Rapid Bridge Replacement, 5.00%, 12/31/38 | | | 465 | | | | 470,357 | |
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44 | | | 720 | | | | 617,846 | |
Pennsylvania Higher Educational Facilities Authority, RB, University of Pennsylvania Health System Obligation, 4.00%, 08/15/44 | | | 805 | | | | 850,982 | |
Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44 | | | 520 | | | | 559,785 | |
| | | | | | | | |
| | | | | | | 3,261,260 | |
|
| Puerto Rico — 6.2% | |
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43 | | | 820 | | | | 807,782 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 5.25%, 07/01/42 | | | 2,125 | | | | 1,997,458 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A: | | | | | | | | |
6.00%, 07/01/38 | | | 395 | | | | 391,729 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Puerto Rico (continued) | |
6.00%, 07/01/44 | | $ | 715 | | | $ | 714,871 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured: | | | | | | | | |
Series A-1, 4.75%, 07/01/53 | | | 1,374 | | | | 1,237,741 | |
Series A-1, 5.00%, 07/01/58 | | | 2,589 | | | | 2,418,178 | |
Series A-2, 4.33%, 07/01/40 | | | 851 | | | | 760,028 | |
Series A-2, 4.78%, 07/01/58 | | | 1,038 | | | | 934,397 | |
Series A-2, 4.33%, 07/01/40 | | | 72 | | | | 64,055 | |
| | | | | | | | |
| | | | | | | 9,326,239 | |
|
| Rhode Island — 2.5% | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.00%, 06/01/40 | | | 420 | | | | 433,280 | |
Series B, 4.50%, 06/01/45 | | | 1,875 | | | | 1,911,281 | |
Series B, 5.00%, 06/01/50 | | | 1,360 | | | | 1,421,282 | |
| | | | | | | | |
| | | | | | | 3,765,843 | |
|
| South Carolina — 3.3% | |
South Carolina Jobs-Economic Development Authority, RB, The Woodlands at Furman Project, Series A, 5.00%, 11/15/54 | | | 165 | | | | 137,932 | |
State of South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/43 | | | 1,110 | | | | 1,199,233 | |
State of South Carolina Public Service Authority, RB: | | | | | | | | |
Santee Cooper, Series A, 5.50%, 12/01/54 | | | 1,840 | | | | 1,942,009 | |
Series E, 5.00%, 12/01/48 | | | 420 | | | | 433,860 | |
Series E, 5.50%, 12/01/53 | | | 750 | | | | 788,295 | |
State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55 | | | 430 | | | | 455,284 | |
| | | | | | | | |
| | | | | | | 4,956,613 | |
|
| 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 | | | | 455,940 | |
5.63%, 01/01/46 | | | 570 | | | | 515,018 | |
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A: | | | | | | | | |
4.00%, 10/01/49 | | | 290 | | | | 270,448 | |
5.25%, 10/01/58 | | | 1,430 | | | | 1,524,423 | |
| | | | | | | | |
| | | | | | | 2,765,829 | |
|
| Texas — 7.3% | |
Brazos Higher Education Authority, Inc., RB, Subordinate, Student Loan Program, Series 1B (AMT), 3.00%, 04/01/40 | | | 285 | | | | 241,161 | |
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.25%, 01/01/21(c) | | | 730 | | | | 756,543 | |
County of Brazoria Industrial Development Corp., RB, Gladieux Metals Recycling, AMT, 7.00%, 03/01/39 | | | 325 | | | | 322,511 | |
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 | | | | 243,260 | |
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A,
0.00%, 09/15/37(b) | | | 5,200 | | | | 2,612,428 | |
Harris County-Houston Sports Authority, Refunding RB, CAB, Series A (AGM) (NPFGC), 0.00%, 11/15/34(b) | | | 3,000 | | | | 1,732,800 | |
Mission EDC, Refunding RB, Senior Lien, NatGasoline Project, AMT, 4.63%, 10/01/31(a) | | | 430 | | | | 422,565 | |
Newark Higher Education Finance Corp., RB,
Series A(a): | | | | | | | | |
5.50%, 08/15/35 | | | 135 | | | | 143,690 | |
5.75%, 08/15/45 | | | 275 | | | | 290,032 | |
North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49 | | | 1,890 | | | | 2,043,808 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 25 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRockLong-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| 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 | | $ | 1,025 | | | $ | 969,209 | |
LBJ Infrastructure Group LLC, 7.00%, 06/30/40 | | | 500 | | | | 501,210 | |
Texas Transportation Commission, RB, First Tier Toll Revenue, 0.00%, 08/01/43(b) | | | 2,205 | | | | 728,311 | |
| | | | | | | | |
| | | | | | | 11,007,528 | |
|
| Virginia — 2.8% | |
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A: | | | | | | | | |
5.00%, 03/01/26 | | | 260 | | | | 257,093 | |
5.13%, 03/01/31 | | | 510 | | | | 489,049 | |
Norfolk Redevelopment & Housing Authority, RB, Fort Norfolk Retirement Community, Inc. — Harbor’s Edge Project, Series A: | | | | | | | | |
5.00%, 01/01/34 | | | 235 | | | | 231,118 | |
5.00%, 01/01/49 | | | 455 | | | | 411,006 | |
Tobacco Settlement Financing Corp., Refunding RB, SeniorSeries B-1, 5.00%, 06/01/47 | | | 1,025 | | | | 971,188 | |
Virginia College Building Authority, RB, Green Bond, Marymount University Project, Series B, 5.00%, 07/01/45(a) | | | 240 | | | | 208,246 | |
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 01/01/37 | | | 1,540 | | | | 1,587,478 | |
| | | | | | | | |
| | | | | | | 4,155,178 | |
|
| Washington — 1.0% | |
Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40 | | | 350 | | | | 371,168 | |
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45 | | | 1,020 | | | | 1,093,440 | |
| | | | | | | | |
| | | | | | | 1,464,608 | |
|
| Wisconsin — 1.3% | |
Public Finance Authority, RB(a): | | | | | | | | |
Alabama Proton Therapy Center, Series A, 6.25%, 10/01/31 | | | 290 | | | | 286,981 | |
Alabama Proton Therapy Center, Series A, 7.00%, 10/01/47 | | | 290 | | | | 279,864 | |
Minnesota College of Osteopathic Medicine,Series A-1, 5.50%, 12/01/48(f)(g) | | | 10 | | | | 7,119 | |
Public Finance Authority, Refunding RB, Wingate University, Series A, 5.25%, 10/01/48 | | | 695 | | | | 743,838 | |
Wisconsin Health & Educational Facilities Authority, RB, ST. Camillus Health System: | | | | | | | | |
5.00%, 11/01/39 | | | 210 | | | | 182,868 | |
5.00%, 11/01/46 | | | 230 | | | | 190,270 | |
5.00%, 11/01/54 | | | 380 | | | | 303,324 | |
| | | | | | | | |
| |
| | | | 1,994,264 | |
| | | | | | | | |
| |
Total Municipal Bonds — 130.5%
(Cost — $197,033,853) | | | | 196,155,572 | |
| | | | | | | | |
|
Municipal Bonds Transferred to Tender Option Bond Trusts (i) — 41.9% | |
| | |
California — 2.3% | | | | | | | | |
City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, Series B, AMT, 5.00%, 05/15/46 | | | 2,700 | | | | 2,916,216 | |
Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47 | | | 495 | | | | 571,450 | |
| | | | | | | | |
| | | | | | | 3,487,666 | |
|
| Colorado — 1.2% | |
Colorado Health Facilities Authority, Refunding RB, Common spirit Health, Series A, 4.00%, 08/01/49(j) | | | 1,810 | | | | 1,744,949 | |
| | | | | | | | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Florida — 1.5% | |
Escambia County Health Facilities Authority, Refunding RB, Health Care Facilities Revenue Bonds, 4.00%, 08/15/45(j) | | $ | 2,321 | | | $ | 2,270,889 | |
| | | | | | | | |
|
| Georgia — 0.7% | |
County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48 | | | 1,025 | | | | 1,057,154 | |
| | | | | | | | |
|
| Idaho — 1.5% | |
Idaho State Building Authority, RB, State Office Campus Project, Series A, 4.00%, 09/01/48 | | | 2,120 | | | | 2,309,125 | |
| | | | | | | | |
|
| Illinois — 2.7% | |
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 08/15/41 | | | 2,340 | | | | 2,462,031 | |
State of Illinois Toll Highway Authority, RB, Series C, 5.00%, 01/01/38 | | | 1,498 | | | | 1,637,072 | |
| | | | | | | | |
| | | | | | | 4,099,103 | |
|
| Iowa — 1.2% | |
Iowa Finance Authority, Refunding RB, UnityPoint Health, Series E, 4.00%, 08/15/46 | | | 1,815 | | | | 1,857,235 | |
| | | | | | | | |
|
| Massachusetts — 6.5% | |
Massachusetts Housing Finance Agency, Refunding RB, Series A, AMT, 4.50%, 12/01/47 | | | 2,058 | | | | 2,163,737 | |
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/21(c) | | | 7,112 | | | | 7,548,846 | |
| | | | | | | | |
| | | | | | | 9,712,583 | |
|
| Michigan — 1.4% | |
Michigan Finance Authority, RB, Multi Model- McLaren Health Care, 4.00%, 02/15/47 | | | 2,000 | | | | 2,067,659 | |
| | | | | | | | |
|
| 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 | | | | 2,554,671 | |
Port Authority of New York & New Jersey, Refunding ARB, Series 194th, 5.25%, 10/15/55 | | | 1,215 | | | | 1,339,100 | |
| | | | | | | | |
| | | | | | | 3,893,771 | |
|
| North Carolina — 1.7% | |
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55 | | | 1,180 | | | | 1,345,802 | |
North Carolina Housing Finance Agency, RB, S/F Housing,Series 39-B (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 01/01/48 | | | 1,163 | | | | 1,241,175 | |
| | | | | | | | |
| | | | | | | 2,586,977 | |
|
| Pennsylvania — 3.0% | |
County of Lehigh Pennsylvania, Refunding RB, Lehigh Valley Health Network, 4.00%, 07/01/49(j) | | | 2,501 | | | | 2,528,291 | |
Pennsylvania Turnpike Commission, RB,Sub-Series A, 5.50%, 12/01/42 | | | 1,680 | | | | 1,888,942 | |
| | | | | | | | |
| | | | | | | 4,417,233 | |
|
| Rhode Island — 1.8% | |
Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 09/15/47 | | | 2,447 | | | | 2,679,662 | |
| | | | | | | | |
|
| Texas — 8.8% | |
City of San Antonio Texas Electric & Gas Systems Revenue, RB, Junior Lien, 5.00%, 02/01/43 | | | 11,000 | | | | 11,967,230 | |
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/21(c) | | | 1,170 | | | | 1,243,160 | |
| | | | | | | | |
| | | | | | | 13,210,390 | |
|
| Virginia — 3.7% | |
Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A,
5.50%, 07/01/57(j) | | | 2,224 | | | | 2,669,578 | |
| | |
| 26 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRockLong-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Virginia (continued) | |
Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 8.29%, 11/01/40 | | $ | 2,949 | | | $ | 2,949,371 | |
| | | | | | | | |
| | | | | | | 5,618,949 | |
|
| West Virginia — 1.3% | |
Morgantown Utility Board, Inc., RB, Series B, 4.00%, 12/01/48(j) | | | 1,891 | | | | 1,998,689 | |
| | | | | | | | |
| |
Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 41.9%
(Cost — $61,091,006) | | | | 63,012,034 | |
| | | | | | | | |
| |
TotalLong-Term Investments — 172.4%
(Cost — $258,124,859) | | | | 259,167,606 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
|
| Short-Term Securities — 0.4% | |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.15%(k)(l) | | | 676,970 | | | | 677,105 | |
| | | | | | | | |
| |
TotalShort-Term Securities — 0.4%
(Cost — $677,098) | | | | 677,105 | |
| | | | | | | | |
| |
Total Investments — 172.8%
(Cost — $258,801,957) | | | | 259,844,711 | |
| |
Other Assets Less Liabilities — 2.1% | | | | 3,162,446 | |
| |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (24.6)% | | | | (37,051,196 | ) |
| |
VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (50.3)% | | | | (75,612,012 | ) |
| | | | | | | | |
| |
Net Assets Applicable to Common Shares — 100.0% | | | $ | 150,343,949 | |
| | | | | | | | |
| (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. |
| (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. |
| (d) | Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end. |
| (e) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
| (f) | Issuer filed for bankruptcy and/or is in default. |
| (g) | Non-income producing security. |
| (h) | When-issued security. |
| (i) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (j) | All or a portion of 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 February 15, 2028, is $6,412,176. See Note 4 of the Notes to Financial Statements for details. |
| (k) | Annualized 7-day yield as of period end. |
| (l) | Investments in issuers considered to be an affiliate/affiliates of the during the year ended April 30, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliated Issuer | | Shares
Held at
04/30/19 | | | Shares
Purchased | | | Shares
Sold | | | Shares
Held at
04/30/20 | | | Value at
04/30/20 | | | Income | | | Net
Realized
Gain (Loss) (a) | | | Change in
Unrealized
Appreciation
(Depreciation) | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | 393,555 | | | | 283,415 | (b) | | | — | | | | 676,970 | | | $ | 677,105 | | | $ | 9,324 | | | $ | 774 | | | $ | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes net capital gain distributions, if applicable. | |
| | (b) | Represents net shares purchased(sold). | |
Derivative Financial Instruments Categorized by Risk Exposure
For the year ended April 30, 2020, 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 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (3,083,691 | ) | | $ | — | | | $ | (3,083,691 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 60,522 | | | $ | — | | | $ | 60,522 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 27 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRockLong-Term Municipal Advantage Trust (BTA) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | | | | |
Average notional value of contracts — Long | | $ | — | (a) |
Average notional value of contracts — Short | | $ | 9,306,465 | |
| | (a) | Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period. | |
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. For information about the Trust’s policy regarding valuation of investments, refer to the Notes to Financial Statements.
The following tables summarize the Trust’s investments categorized in the disclosure hierarchy:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | |
Long-Term Investments(a) | | $ | — | | | $ | 259,167,606 | | | $ | — | | | $ | 259,167,606 | |
Short-Term Securities | | | 677,105 | | | | — | | | | — | | | | 677,105 | |
| | | | | | | | | | | | | | | | |
| | $ | 677,105 | | | $ | 259,167,606 | | | $ | — | | | $ | 259,844,711 | |
| | | | | | | | | | | | | | | | |
| | (a) | See above Schedule of Investments for values in each state or political subdivision. | |
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 | | $ | — | | | $ | (36,907,873 | ) | | $ | — | | | $ | (36,907,873 | ) |
VRDP Shares at Liquidation Value | | | — | | | | (76,000,000 | ) | | | — | | | | (76,000,000 | ) |
| | | | | | | | | | | | | | | | |
| | $ | — | | | $ | (112,907,873 | ) | | $ | — | | | $ | (112,907,873 | ) |
| | | | | | | | | | | | | | | | |
See notes to financial statements.
| | |
| 28 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments April 30, 2020 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| | |
Municipal Bonds — 127.5% | | | | | | | | |
|
| Alabama — 2.7% | |
County of Jefferson Alabama Sewer, Refunding RB: | | | | | | | | |
Senior Lien, Series A (AGM), 5.00%, 10/01/44 | | $ | 1,555 | | | $ | 1,702,865 | |
Senior Lien, Series A (AGM), 5.25%, 10/01/48 | | | 2,275 | | | | 2,511,372 | |
Sub-Lien, Series D, 6.00%, 10/01/42 | | | 5,740 | | | | 6,468,636 | |
Sub-Lien, Series D, 7.00%, 10/01/51 | | | 1,765 | | | | 2,045,635 | |
Lower Alabama Gas District, RB, Series A, 5.00%, 09/01/46 | | | 2,110 | | | | 2,638,260 | |
| | | | | | | | |
| | | | | | | 15,366,768 | |
|
| Arizona — 4.7% | |
City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46(a) | | | 3,400 | | | | 3,102,636 | |
City of Phoenix Civic Improvement Corp., ARB, Series A, 4.00%, 07/01/45 | | | 2,610 | | | | 2,610,966 | |
Salt Verde Financial Corp., RB, Senior: | | | | | | | | |
5.00%, 12/01/32 | | | 10,030 | | | | 12,202,398 | |
5.00%, 12/01/37 | | | 7,460 | | | | 9,205,565 | |
| | | | | | | | |
| | | | | | | 27,121,565 | |
|
| Arkansas — 0.7% | |
Arkansas Development Finance Authority, RB, Big River Steel Project, AMT, 4.50%, 09/01/49(a) | | | 4,985 | | | | 4,256,941 | |
| | | | | | | | |
|
| California — 7.5% | |
California Educational Facilities Authority, RB, Stanford University,Series V-1, 5.00%, 05/01/49 | | | 4,230 | | | | 6,667,664 | |
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20(b) | | | 3,115 | | | | 3,160,915 | |
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33 | | | 2,465 | | | | 2,687,170 | |
California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A: | | | | | | | | |
5.25%, 08/15/39 | | | 290 | | | | 313,212 | |
5.25%, 08/15/49 | | | 715 | | | | 757,700 | |
California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45(a) | | | 2,970 | | | | 3,003,709 | |
California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A(a): | | | | | | | | |
5.00%, 12/01/41 | | | 1,030 | | | | 1,024,181 | |
5.00%, 12/01/46 | | | 885 | | | | 865,857 | |
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior, Series A, 5.00%, 05/15/40 | | | 4,575 | | | | 4,583,418 | |
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A,
6.25%, 10/01/23(b) | | | 690 | | | | 814,994 | |
County of Riverside Transportation Commission, RB, CAB, Senior Lien, Series B(c): | | | | | | | | |
0.00%, 06/01/41 | | | 5,000 | | | | 1,950,850 | |
0.00%, 06/01/42 | | | 6,000 | | | | 2,212,380 | |
0.00%, 06/01/43 | | | 5,000 | | | | 1,736,900 | |
Golden State Tobacco Securitization Corp., Refunding RB: | | | | | | | | |
Series A-1, 5.25%, 06/01/47 | | | 1,070 | | | | 1,071,402 | |
Series A-2, 5.00%, 06/01/47 | | | 4,335 | | | | 4,229,139 | |
San Marcos Unified School District, GO, CAB, Election of 2010, Series B(c): | | | | | | | | |
0.00%, 08/01/34 | | | 3,500 | | | | 2,390,535 | |
0.00%, 08/01/36 | | | 4,000 | | | | 2,518,200 | |
State of California, GO, Various Purposes, 6.00%, 03/01/33 | | | 1,670 | | | | 1,675,778 | |
State of California Public Works Board, LRB, Various Capital Projects, Series I, 5.00%, 11/01/38 | | | 1,495 | | | | 1,627,293 | |
| | | | | | | | |
| | | | | | | 43,291,297 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Colorado — 1.8% | |
Arapahoe County School District No. 6 Littleton, GO, Series A, 5.50%, 12/01/43 | | $ | 3,485 | | | $ | 4,314,465 | |
Colorado Health Facilities Authority, Refunding RB, Commonspirit Health, Series A, 4.00%, 08/01/44 | | | 3,565 | | | | 3,463,362 | |
State of Colorado, COP, Building Excellent Schools, Series O, 4.00%, 03/15/44 | | | 2,580 | | | | 2,838,051 | |
| | | | | | | | |
| | | | | | | 10,615,878 | |
|
| Connecticut — 1.1% | |
State of Connecticut, GO, Series A, 4.00%, 01/15/38 | | | 6,300 | | | | 6,568,443 | |
| | | | | | | | |
|
| Delaware — 2.6% | |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 | | | 2,225 | | | | 2,250,565 | |
Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 06/01/55 | | | 2,280 | | | | 2,539,327 | |
State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45 | | | 10,080 | | | | 10,082,117 | |
| | | | | | | | |
| | | | | | | 14,872,009 | |
|
| District of Columbia — 6.4% | |
District of Columbia, Refunding RB: | | | | | | | | |
Georgetown University, 5.00%, 04/01/35 | | | 865 | | | | 958,965 | |
Kipp Charter School, Series A, 6.00%, 07/01/23(b) | | | 1,480 | | | | 1,702,267 | |
The Catholic University of America Issue, 5.00%, 10/01/48 | | | 4,590 | | | | 5,116,932 | |
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 05/15/40 | | | 23,035 | | | | 23,428,668 | |
Metropolitan Washington Airports Authority, Refunding ARB, Dulles Metrorail And Capital Improvement Projects, Series A, 5.00%, 10/01/53 | | | 3,990 | | | | 4,097,251 | |
Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Refunding RB, Subordinate, Dulles Metrorail And Capital Improvement Projects, Series B, 4.00%, 10/01/53 | | | 1,550 | | | | 1,480,157 | |
| | | | | | | | |
| | | | | | | 36,784,240 | |
|
| Florida — 3.0% | |
County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45 | | | 2,620 | | | | 2,881,948 | |
County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport,Series A-1,
5.38%, 10/01/20(b) | | | 2,280 | | | | 2,321,701 | |
County of Volusia Educational Facility Authority, Refunding RB, Embry Riddle Aeronautical Project: | | | | | | | | |
5.00%, 10/15/44 | | | 1,160 | | | | 1,296,683 | |
5.00%, 10/15/49 | | | 2,375 | | | | 2,656,438 | |
Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(b) | | | 5,885 | | | | 6,403,880 | |
Stevens Plantation Community Development District, RB, Special Assessment, Series A, 7.10%, 05/01/35(d)(e)(f) | | | 3,395 | | | | 1,629,600 | |
| | | | | | | | |
| | | | | | | 17,190,250 | |
|
| Georgia — 2.0% | |
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 | | | | 1,103,920 | |
Main Street Natural Gas, Inc., RB, Series A: | | | | | | | | |
5.00%, 05/15/35 | | | 990 | | | | 1,127,966 | |
5.00%, 05/15/36 | | | 990 | | | | 1,124,115 | |
5.00%, 05/15/37 | | | 1,085 | | | | 1,236,792 | |
5.00%, 05/15/38 | | | 600 | | | | 679,416 | |
5.00%, 05/15/49 | | | 1,990 | | | | 2,310,689 | |
Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project, 4.00%, 01/01/49 | | | 3,145 | | | | 2,827,575 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 29 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Georgia (continued) | |
Municipal Electric Authority of Georgia, Refunding RB, Series A, 4.00%, 01/01/49 | | $ | 1,230 | | | $ | 1,183,420 | |
| | | | | | | | |
| | | | | | | 11,593,893 | |
|
| Hawaii — 0.5% | |
State of Hawaii Harbor System, ARB, Series A, 5.25%, 07/01/30 | | | 2,660 | | | | 2,677,157 | |
| | | | | | | | |
|
| Idaho — 0.3% | |
Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series A, 5.00%, 12/01/46 | | | 1,485 | | | | 1,635,015 | |
| | | | | | | | |
|
| Illinois — 15.4% | |
Chicago Board of Education, GO, Series C: | | | | | | | | |
Dedicated Revenues, Series H, 5.00%, 12/01/36 | | | 920 | | | | 886,825 | |
Project, 5.25%, 12/01/35 | | | 2,905 | | | | 2,877,606 | |
Chicago Board of Education, GO, Refunding: | | | | | | | | |
Dedicated Revenues, Series D, 5.00%, 12/01/25 | | | 1,650 | | | | 1,684,072 | |
Dedicated Revenues, Series F, 5.00%, 12/01/22 | | | 1,250 | | | | 1,272,637 | |
Dedicated Revenues, Series G, 5.00%, 12/01/34 | | | 915 | | | | 883,277 | |
5.00%, 12/01/25 | | | 1,280 | | | | 1,306,432 | |
Chicago Board of Education, GO: | | | | | | | | |
5.00%, 12/01/46 | | | 1,060 | | | | 954,117 | |
5.00%, 12/01/46 | | | 2,745 | | | | 2,374,205 | |
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series C, 6.50%, 01/01/21(b) | | | 11,385 | | | | 11,810,230 | |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 | | | 2,055 | | | | 2,160,771 | |
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42 | | | 2,000 | | | | 2,011,460 | |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38 | | | 1,525 | | | | 1,545,496 | |
Illinois Finance Authority, RB, Chicago LLC, University of Illinois at Chicago Project, Series A: | | | | | | | | |
5.00%, 02/15/47 | | | 405 | | | | 401,610 | |
5.00%, 02/15/50 | | | 205 | | | | 202,278 | |
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project Bonds, Series A, 5.00%, 06/15/57 | | | 1,760 | | | | 1,567,315 | |
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project: | | | | | | | | |
4.00%, 06/15/50 | | | 2,710 | | | | 2,256,644 | |
Series B (AGM), 0.00%, 06/15/43(c) | | | 10,455 | | | | 3,695,947 | |
Series B (AGM), 5.00%, 06/15/50 | | | 14,710 | | | | 14,745,304 | |
Series B-2, 5.00%, 06/15/50 | | | 3,905 | | | | 3,905,117 | |
Rail splitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21(b) | | | 2,245 | | | | 2,369,126 | |
State of Illinois, GO, 5.00%, 02/01/39 | | | 2,990 | | | | 2,654,313 | |
State of Illinois, GO, Refunding: | | | | | | | | |
Series A, 5.00%, 10/01/30 | | | 10,400 | | | | 9,934,808 | |
Series B, 5.00%, 10/01/28 | | | 1,965 | | | | 1,915,168 | |
State of Illinois, GO, Series A, 5.00%, 04/01/38 | | | 9,030 | | | | 8,040,763 | |
State of Illinois Toll Highway Authority, RB, Series C, 5.00%, 01/01/37 | | | 5,455 | | | | 5,971,534 | |
University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44 | | | 1,910 | | | | 1,977,843 | |
| | | | | | | | |
| | | | | | | 89,404,898 | |
|
| Indiana — 3.4% | |
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT: | | | | | | | | |
6.75%, 01/01/34 | | | 1,525 | | | | 1,595,699 | |
7.00%, 01/01/44 | | | 3,680 | | | | 3,856,272 | |
Indiana Finance Authority, RB, Series A: | | | | | | | | |
CWA Authority Project, 1st Lien, 5.25%, 10/01/38 | | | 6,305 | | | | 6,637,967 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Indiana (continued) | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44 | | $ | 880 | | | $ | 900,618 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48 | | | 2,905 | | | | 2,981,692 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51 | | | 790 | | | | 809,371 | |
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40 | | | 2,490 | | | | 2,715,221 | |
| | | | | | | | |
| | | | | | | 19,496,840 | |
|
| Iowa — 1.4% | |
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project: | | | | | | | | |
Series B, 5.25%, 12/01/50(g) | | | 5,515 | | | | 5,258,332 | |
Midwestern Disaster Area, 5.25%, 12/01/25 | | | 2,125 | | | | 2,114,524 | |
Midwestern Disaster Area, 5.88%, 12/01/26(a) | | | 805 | | | | 816,946 | |
| | | | | | | | |
| | | | | | | 8,189,802 | |
|
| Kentucky — 1.2% | |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(b) | | | 1,915 | | | | 2,107,860 | |
Kentucky Economic Development Finance Authority, Refunding RB, Louisville Arena Authority, Inc. (AGM), 5.00%, 12/01/45 | | | 2,515 | | | | 2,799,572 | |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43(h) | | | 2,325 | | | | 2,172,433 | |
| | | | | | | | |
| | | | | | | 7,079,865 | |
|
| Louisiana — 2.8% | |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project,Series A-1, 6.50%, 11/01/35 | | | 6,535 | | | | 6,617,145 | |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A: | | | | | | | | |
5.50%, 05/15/30 | | | 1,980 | | | | 1,982,772 | |
5.25%, 05/15/31 | | | 1,690 | | | | 1,735,326 | |
5.25%, 05/15/32 | | | 2,160 | | | | 2,268,821 | |
5.25%, 05/15/33 | | | 2,345 | | | | 2,461,781 | |
5.25%, 05/15/35 | | | 985 | | | | 1,044,326 | |
| | | | | | | | |
| | | | | | | 16,110,171 | |
|
| Maryland — 1.2% | |
Maryland EDC, Refunding RB, CNX Marine Terminal, Inc., 5.75%, 09/01/25 | | | 1,440 | | | | 1,448,309 | |
Maryland Health & Higher Educational Facilities Authority, RB, Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46 | | | 840 | | | | 924,857 | |
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 01/01/21(b) | | | 4,295 | | | | 4,440,858 | |
| | | | | | | | |
| | | | | | | 6,814,024 | |
|
| Michigan — 3.2% | |
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39 | | | 8,665 | | | | 9,201,104 | |
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 05/15/36 | | | 1,210 | | | | 1,211,367 | |
Michigan Finance Authority, Refunding RB: | | | | | | | | |
Detroit Water & Sewage Department Project, Senior Lien,Series C-1, 5.00%, 07/01/44 | | | 1,710 | | | | 1,776,092 | |
Series A, 4.00%, 12/01/49 | | | 1,640 | | | | 1,685,313 | |
Michigan State University, Refunding RB, Board of Trustees, Series B, 5.00%, 02/15/48 | | | 2,000 | | | | 2,368,340 | |
Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.00%, 06/30/48 | | | 2,120 | | | | 2,134,861 | |
| | | | | | | | |
| | | | | | | 18,377,077 | |
| | |
| 30 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Minnesota — 1.1% | |
Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A: | | | | | | | | |
4.25%, 02/15/48 | | $ | 2,030 | | | $ | 2,062,135 | |
5.25%, 02/15/53 | | | 4,060 | | | | 4,436,565 | |
| | | | | | | | |
| | | | | | | 6,498,700 | |
|
| Missouri — 0.2% | |
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44 | | | 495 | | | | 532,971 | |
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43 | | | 480 | | | | 501,912 | |
| | | | | | | | |
| | | | | | | 1,034,883 | |
|
| Nebraska — 0.8% | |
Central Plains Energy Project, RB, Gas Project No. 3: | | | | | | | | |
5.25%, 09/01/37 | | | 1,610 | | | | 1,713,942 | |
5.00%, 09/01/42 | | | 2,815 | | | | 2,978,748 | |
| | | | | | | | |
| | | | | | | 4,692,690 | |
|
| New Hampshire — 0.7% | |
New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project(a): | | | | | | | | |
Series B, 4.63%, 11/01/42 | | | 3,055 | | | | 2,738,777 | |
Series C, AMT, 4.88%, 11/01/42 | | | 1,585 | | | | 1,432,792 | |
| | | | | | | | |
| | | | | | | 4,171,569 | |
|
| New Jersey — 15.5% | |
Casino Reinvestment Development Authority, Inc., Refunding RB: | | | | | | | | |
5.25%, 11/01/39 | | | 3,280 | | | | 3,156,344 | |
5.25%, 11/01/44 | | | 2,980 | | | | 2,770,268 | |
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(a) | | | 2,115 | | | | 2,120,034 | |
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel,Sub-Series B,
6.25%, 01/01/37(e)(f) | | | 3,680 | | | | 52,440 | |
New Jersey EDA, RB: | | | | | | | | |
Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30 | | | 2,035 | | | | 2,020,938 | |
Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 01/01/43 | | | 2,285 | | | | 2,323,182 | |
School Facilities Construction, 5.00%, 06/15/49 | | | 4,650 | | | | 4,422,197 | |
Series EEE, 5.00%, 06/15/48 | | | 7,320 | | | | 6,972,739 | |
Transit transportation Project, 4.00%, 11/01/38 | | | 1,030 | | | | 914,434 | |
Transit transportation Project, 4.00%, 11/01/39 | | | 825 | | | | 729,531 | |
New Jersey EDA, Refunding ARB, Port Network Container Terminal LLC Project, AMT, 5.00%, 10/01/47 | | | 2,905 | | | | 2,719,341 | |
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 04/01/28 | | | 8,000 | | | | 8,611,440 | |
New Jersey State Turnpike Authority, RB: | | | | | | | | |
Series A, 5.00%, 01/01/43 | | | 3,035 | | | | 3,191,758 | |
Series E, 5.00%, 01/01/45 | | | 5,095 | | | | 5,532,049 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
Series BB, 4.00%, 06/15/50 | | | 3,010 | | | | 2,571,533 | |
Series BB, 5.00%, 06/15/50 | | | 9,895 | | | | 9,402,328 | |
Transportation Program, Series AA, 5.00%, 06/15/44 | | | 3,765 | | | | 3,637,630 | |
Transportation System, Series A, 5.50%, 06/15/21(b) | | | 8,000 | | | | 8,439,280 | |
Transportation System, Series B, 5.25%, 06/15/36 | | | 4,810 | | | | 4,819,380 | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.25%, 06/01/46 | | | 1,070 | | | | 1,140,278 | |
Sub-Series B, 5.00%, 06/01/46 | | | 14,320 | | | | 14,396,182 | |
| | | | | | | | |
| | | | | | | 89,943,306 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| 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 | | | $ | 5,048,469 | |
Counties of New York Tobacco Trust II, RB, Settlement Pass-Through, 5.75%, 06/01/43 | | | 840 | | | | 841,999 | |
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41(a) | | | 3,600 | | | | 3,591,000 | |
Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through,Series A-2B, 5.00%, 06/01/45 | | | 9,395 | | | | 8,635,790 | |
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44 | | | 1,655 | | | | 1,740,682 | |
Metropolitan Transportation Authority, RB, Series B: | | | | | | | | |
5.25%, 11/15/38 | | | 4,640 | | | | 4,813,072 | |
5.25%, 11/15/39 | | | 1,650 | | | | 1,710,225 | |
New York Liberty Development Corp., Refunding RB, 3 World Trade Center Project(a): | | | | | | | | |
Class 1, 5.00%, 11/15/44 | | | 7,830 | | | | 7,216,833 | |
Class 2, 5.15%, 11/15/34 | | | 660 | | | | 632,636 | |
Class 2, 5.38%, 11/15/40 | | | 1,655 | | | | 1,627,080 | |
New York State Dormitory Authority, Refunding RB, Series D, 5.00%, 02/15/37 | | | 6,655 | | | | 6,996,135 | |
New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 01/01/50 | | | 1,165 | | | | 1,187,718 | |
New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31 | | | 1,065 | | | | 1,034,466 | |
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 | | | | 2,570,298 | |
6.00%, 12/01/42 | | | 1,960 | | | | 1,971,878 | |
State of New York Environmental Facilities Corp., RB, Subordinated SRF Bonds, Series B, 5.00%, 06/15/48 | | | 3,535 | | | | 4,181,905 | |
State of New York Power Authority, RB, Series A, 4.00%, 11/15/60(i) | | | 2,655 | | | | 2,799,459 | |
| | | | | | | | |
| | | | | | | 56,599,645 | |
|
| North Carolina — 0.4% | |
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21(b) | | | 1,130 | | | | 1,194,082 | |
University of North Carolina at Chapel Hill, RB, University of North Carolina Hospital at Chapel Hills, 5.00%, 02/01/49 | | | 1,080 | | | | 1,381,039 | |
| | | | | | | | |
| | | | | | | 2,575,121 | |
|
| North Dakota — 0.3% | |
County of Cass North Dakota, Refunding RB, Essentia Health Obligated Group, Series B, 5.25%, 02/15/58 | | | 1,885 | | | | 2,053,425 | |
| | | | | | | | |
|
| Ohio — 2.7% | |
Buckeye Tobacco Settlement Financing Authority, Refunding RB, Senior: | | | | | | | | |
Class 1,Series A-2, 4.00%, 06/01/37 | | | 580 | | | | 620,896 | |
Class 1,Series A-2, 4.00%, 06/01/38 | | | 580 | | | | 620,913 | |
Class 1,Series A-2, 4.00%, 06/01/39 | | | 580 | | | | 615,798 | |
Class 1,Series A-2, 4.00%, 06/01/48 | | | 1,525 | | | | 1,505,602 | |
Class 2,Series B-2, 5.00%, 06/01/55 | | | 6,705 | | | | 5,931,779 | |
County of Franklin Ohio, RB: | | | | | | | | |
OPRS Communities Obligation Group, Series A, 6.13%, 07/01/22(b) | | | 75 | | | | 83,480 | |
OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40 | | | 1,205 | | | | 1,224,593 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 31 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Ohio (continued) | |
Series A, 4.00%, 12/01/49 | | $ | 1,015 | | | $ | 1,069,739 | |
Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46 | | | 800 | | | | 889,888 | |
Ohio Air Quality Development Authority, RB, AMG Vanadium Project, AMT, 5.00%, 07/01/49(a) | | | 1,480 | | | | 1,344,639 | |
State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53 | | | 1,585 | | | | 1,738,983 | |
| | | | | | | | |
| | | | | | | 15,646,310 | |
|
| Oklahoma — 1.9% | |
City of Oklahoma Turnpike Authority, RB, Series A, 4.00%, 01/01/48 | | | 4,065 | | | | 4,396,623 | |
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48 | | | 2,350 | | | | 2,418,103 | |
Oklahoma Turnpike Authority, RB, 2nd Series C, 4.00%, 01/01/42 | | | 3,845 | | | | 4,178,938 | |
| | | | | | | | |
| | | | | | | 10,993,664 | |
|
| Pennsylvania — 2.7% | |
Allentown Neighborhood Improvement Zone Development Authority, RB, Subordinate, City Center Project(a): | | | | | | | | |
5.00%, 05/01/28 | | | 420 | | | | 422,915 | |
5.13%, 05/01/32 | | | 470 | | | | 469,253 | |
5.38%, 05/01/42 | | | 870 | | | | 831,589 | |
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42 | | | 1,240 | | | | 1,283,313 | |
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A: | | | | | | | | |
4.00%, 09/01/49 | | | 1,135 | | | | 1,141,867 | |
5.00%, 09/01/43 | | | 2,505 | | | | 2,749,814 | |
Pennsylvania Economic Development Financing Authority, RB, AMT, 5.00%, 06/30/42 | | | 1,660 | | | | 1,672,051 | |
Pennsylvania Higher Educational Facilities Authority, RB, University of Pennsylvania Health System Obligation, 4.00%, 08/15/49 | | | 4,665 | | | | 4,914,484 | |
Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44 | | | 2,155 | | | | 2,319,879 | |
| | | | | | | | |
| | | | | | | 15,805,165 | |
|
| Puerto Rico — 5.6% | |
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds: | | | | | | | | |
5.50%, 05/15/39 | | | 1,365 | | | | 1,366,078 | |
5.63%, 05/15/43 | | | 1,360 | | | | 1,339,736 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A: | | | | | | | | |
5.00%, 07/01/33 | | | 4,920 | | | | 4,673,262 | |
5.13%, 07/01/37 | | | 1,410 | | | | 1,331,308 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A: | | | | | | | | |
6.00%, 07/01/38 | | | 1,455 | | | | 1,442,953 | |
6.00%, 07/01/44 | | | 2,630 | | | | 2,629,526 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured: | | | | | | | | |
CAB,Series A-1, 0.00%, 07/01/46(c) | | | 3,084 | | | | 709,197 | |
Series A-1, 4.75%, 07/01/53 | | | 3,143 | | | | 2,831,309 | |
Series A-1, 5.00%, 07/01/58 | | | 12,112 | | | | 11,312,850 | |
Series A-2, 4.33%, 07/01/40 | | | 1,950 | | | | 1,741,545 | |
Series A-2, 4.78%, 07/01/58 | | | 3,325 | | | | 2,993,132 | |
| | | | | | | | |
| | | | | | | 32,370,896 | |
|
| Rhode Island — 2.5% | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.00%, 06/01/35 | | | 3,060 | | | | 3,221,048 | |
Series B, 4.50%, 06/01/45 | | | 5,175 | | | | 5,275,136 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Rhode Island (continued) | |
Series B, 5.00%, 06/01/50 | | $ | 5,765 | | | $ | 6,024,771 | |
| | | | | | | | |
| | | | | | | 14,520,955 | |
|
| South Carolina — 5.7% | |
South Carolina Jobs EDA, Refunding RB: | | | | | | | | |
Anmed Health Project, 5.00%, 02/01/36 | | | 5,115 | | | | 5,638,469 | |
Prisma Health Obligated Group, Series A, 5.00%, 05/01/48 | | | 6,075 | | | | 6,552,981 | |
South Carolina Jobs-Economic Development Authority, RB, Bishop Gadsden Episcopal Retirement Community: | | | | | | | | |
5.00%, 04/01/44 | | | 160 | | | | 160,122 | |
4.00%, 04/01/49 | | | 150 | | | | 122,235 | |
5.00%, 04/01/49 | | | 480 | | | | 471,763 | |
4.00%, 04/01/54 | | | 370 | | | | 294,553 | |
5.00%, 04/01/54 | | | 875 | | | | 852,093 | |
State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54 | | | 12,065 | | | | 12,733,884 | |
State of South Carolina Public Service Authority, Refunding RB: | | | | | | | | |
Series A, 5.00%, 12/01/50 | | | 2,805 | | | | 2,928,560 | |
Series E, 5.25%, 12/01/55 | | | 3,335 | | | | 3,531,098 | |
| | | | | | | | |
| | | | | | | 33,285,758 | |
|
| Tennessee — 0.7% | |
City of Chattanooga Health Educational & Housing Facility Board, Refunding RB, Commonspirit Health, Series A, 4.00%, 08/01/44 | | | 315 | | | | 306,019 | |
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40 | | | 1,350 | | | | 1,462,185 | |
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A, 5.25%, 10/01/58 | | | 1,925 | | | | 2,052,108 | |
| | | | | | | | |
| | | | | | | 3,820,312 | |
|
| Texas — 11.0% | |
Central Texas Regional Mobility Authority, Refunding RB: | | | | | | | | |
Senior Lien, 6.25%, 01/01/21(b) | | | 4,210 | | | | 4,363,076 | |
Sub-Lien, 5.00%, 01/01/33 | | | 700 | | | | 719,012 | |
City of Austin Texas Airport System, ARB, AMT, 5.00%, 11/15/39 | | | 385 | | | | 411,107 | |
City of San Antonio Texas Electric & Gas Systems Revenue, Refunding RB, Series A, 5.00%, 02/01/48 | | | 2,295 | | | | 2,742,594 | |
County of Fort Bend Texas Industrial Development Corp., RB, NRG Energy Inc. Project, Series B, 4.75%, 11/01/42 | | | 470 | | | | 481,167 | |
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B(b): | | | | | | | | |
7.00%, 01/01/23 | | | 380 | | | | 440,184 | |
7.00%, 01/01/23 | | | 500 | | | | 579,485 | |
County of Harris Texas-Houston Sports Authority, Refunding RB(c): | | | | | | | | |
3rd Lien, Series A (NPFGC), 0.00%, 11/15/24(b) | | | 6,000 | | | | 2,618,580 | |
3rd Lien, Series A (NPFGC), 0.00%, 11/15/37 | | | 20,120 | | | | 7,471,763 | |
CAB, Junior Lien, Series H (NPFGC), 0.00%, 11/15/35 | | | 5,000 | | | | 2,729,750 | |
CAB, Senior Lien, Series A (NPFGC) (AGM), 0.00%, 11/15/38 | | | 12,580 | | | | 5,501,611 | |
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 | | | | 4,185,840 | |
0.00%, 09/15/41 | | | 5,420 | | | | 2,198,352 | |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/48 | | | 9,025 | | | | 10,004,122 | |
| | |
| 32 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Texas (continued) | |
New Hope Cultural Education Facilities Corp., RB, Collegiate Housing Tarleton State University Project, 5.00%, 04/01/35 | | $ | 355 | | | $ | 362,420 | |
New Hope Cultural Education Facilities Finance Corp., Refunding RB, Jubilee Academic Center, Series A, 5.00%, 08/15/46(a) | | | 1,980 | | | | 1,674,981 | |
San Antonio Water System, Refunding RB, Junior Lien, Series A, 5.00%, 05/15/48 | | | 5,035 | | | | 5,946,033 | |
Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements, 5.00%, 12/15/32 | | | 2,835 | | | | 2,936,011 | |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, 7.00%, 06/30/40 | | | 6,000 | | | | 6,014,520 | |
Texas Transportation Commission, RB, First Tier Toll Revenue, 5.00%, 08/01/57 | | | 2,310 | | | | 2,335,295 | |
| | | | | | | | |
| | | | | | | 63,715,903 | |
|
| Utah — 0.7% | |
City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT: | | | | | | | | |
5.00%, 07/01/48 | | | 1,735 | | | | 1,909,576 | |
5.00%, 07/01/47 | | | 1,830 | | | | 1,983,756 | |
| | | | | | | | |
| | | | | | | 3,893,332 | |
|
| Virginia — 1.5% | |
County of Front Royal & Warren IDA, RB, Valley Health System Obligated Group, 4.00%, 01/01/50 | | | 1,465 | | | | 1,502,870 | |
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT: | | | | | | | | |
5.25%, 01/01/32 | | | 3,155 | | | | 3,210,055 | |
6.00%, 01/01/37 | | | 3,790 | | | | 3,906,846 | |
| | | | | | | | |
| | | | | | | 8,619,771 | |
|
| Washington — 1.8% | |
Port of Seattle Washington, ARB, Series A, AMT, 5.00%, 05/01/43 | | | 2,980 | | | | 3,231,124 | |
Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40 | | | 1,475 | | | | 1,564,208 | |
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45 | | | 4,420 | | | | 4,738,240 | |
Washington Health Care Facilities Authority, Refunding RB, Commonspirit Health, Series A, 4.00%, 08/01/44 | | | 685 | | | | 665,471 | |
| | | | | | | | |
| | | | 10,199,043 | |
| | | | | | | | |
| | |
Total Municipal Bonds — 127.5%
(Cost — $733,013,376) | | | | | | | 737,886,581 | |
| | | | | | | | |
|
Municipal Bonds Transferred to Tender Option Bond Trusts(j)— 37.4% | |
| | |
California — 1.2% | | | | | | | | |
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, 4.00%, 04/01/42(k) | | | 6,196 | | | | 6,629,931 | |
| | | | | | | | |
|
| Colorado — 0.9% | |
City & County of Denver Colorado Airport System Revenue, Refunding ARB, Subordinate System, Series A, AMT, 5.25%, 12/01/48(k) | | | 4,475 | | | | 4,996,165 | |
| | | | | | | | |
|
| Georgia — 1.8% | |
County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48 | | | 7,220 | | | | 7,446,492 | |
Georgia Housing & Finance Authority, RB, S/F Housing, Series 2020, 3.60%, 12/01/26(a)(g) | | | 2,898 | | | | 3,003,956 | |
| | | | | | | | |
| | | | | | | 10,450,448 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Illinois — 0.5% | |
Illinois Finance Authority, Refunding RB, Presence Health Network, Series C: | | | | | | | | |
4.00%, 02/15/27(b) | | $ | 5 | | | $ | 5,713 | |
4.00%, 02/15/41 | | | 2,800 | | | | 2,953,466 | |
| | | | | | | | |
| | | | | | | 2,959,179 | |
|
| Massachusetts — 3.3% | |
Commonwealth of Massachusetts Transportation Fund Revenue, RB, Rail Enhancement Program, Series A, 4.00%, 06/01/45 | | | 4,153 | | | | 4,425,134 | |
Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 5.00%, 07/01/47 | | | 9,088 | | | | 9,959,468 | |
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/21(b) | | | 4,427 | | | | 4,698,121 | |
| | | | | | | | |
| | | | | | | 19,082,723 | |
|
| New York — 16.2% | |
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series HH, 5.00%, 06/15/31(k) | | | 16,395 | | | | 17,051,948 | |
Hudson Yards Infrastructure Corp., RB,Senior-Fiscal 2012(k): | | | | | | | | |
5.75%, 02/15/21(b) | | | 1,938 | | | | 2,006,006 | |
5.75%, 02/15/47 | | | 1,192 | | | | 1,234,034 | |
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43 | | | 20,864 | | | | 21,879,470 | |
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(k) | | | 12,611 | | | | 13,152,570 | |
New York State Dormitory Authority, Refunding RB, Series D, 4.00%, 02/15/47 | | | 12,060 | | | | 12,954,611 | |
New York State Thruway Authority, Refunding RB, Subordinate, Series B, 4.00%, 01/01/50 | | | 5,805 | | | | 5,960,170 | |
Port Authority of New York & New Jersey, Refunding ARB, Series194th, 5.25%, 10/15/55 | | | 5,070 | | | | 5,587,850 | |
State of New York Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/46 | | | 13,155 | | | | 14,179,248 | |
| | | | | | | | |
| | | | | | | 94,005,907 | |
|
| North Carolina — 1.0% | |
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55 | | | 4,960 | | | | 5,656,930 | |
| | | | | | | | |
|
| Pennsylvania — 0.9% | |
Pennsylvania Turnpike Commission, RB,Sub-Series A, 5.50%, 12/01/42 | | | 4,652 | | | | 5,230,844 | |
| | | | | | | | |
|
| Rhode Island — 0.6% | |
Narragansett Bay Commission, Refunding RB, Wastewater System, Series A, 4.00%, 09/01/22(b) | | | 3,137 | | | | 3,374,278 | |
| | | | | | | | |
|
| Texas — 7.7% | |
City of San Antonio Texas Electric & Gas Systems Revenue, RB, Junior Lien, 5.00%, 02/01/43 | | | 4,900 | | | | 5,330,857 | |
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/21(b) | | | 6,650 | | | | 7,065,825 | |
Lower Colorado River Authority, Refunding RB, LCRA Transmission Services Corporation Project, 4.00%, 05/15/43 | | | 4,140 | | | | 4,247,060 | |
San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project, 4.00%, 09/15/42 | | | 5,505 | | | | 5,716,998 | |
Texas Water Development Board, RB, State Water Implementation Fund, Series A, 4.00%, 10/15/49 | | | 13,920 | | | | 15,546,830 | |
University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43 | | | 6,003 | | | | 6,469,528 | |
| | | | | | | | |
| | | | | | | 44,377,098 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 33 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Virginia — 1.7% | |
Virginia Small Business Financing Authority, Refunding RB, Bon Secours Health System, Series A, 4.00%, 12/01/49 | | $ | 9,678 | | | $ | 10,028,749 | |
| | | | | | | | |
|
| Washington — 0.6% | |
Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Refunding RB, Subordinate, Dulles Metrorail And Capital Improvement Projects, Series B (AGM), 4.00%, 10/01/53 | | | 3,639 | | | | 3,683,798 | |
| | | | | | | | |
|
| Wisconsin — 1.0% | |
State of Wisconsin Health & Educational Facilities Authority, Refunding RB, The Medical College of Wisconsin, Inc., 4.00%, 12/01/46 | | | 5,575 | | | | 5,944,446 | |
| | | | | | | | |
| |
Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 37.4%
(Cost — $212,202,778) | | | | 216,420,496 | |
| | | | | | | | |
| |
TotalLong-Term Investments — 164.9%
(Cost — $945,216,154) | | | | 954,307,077 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
|
| Short-Term Securities — 2.3% | |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.15%(l)(m) | | | 13,732,433 | | | | 13,735,179 | |
| | | | | | | | |
| |
TotalShort-Term Securities — 2.3%
(Cost — $13,729,814) | | | | 13,735,179 | |
| |
Total Investments — 167.2%
(Cost — $958,945,968) | | | | 968,042,256 | |
| |
Other Assets Less Liabilities — 3.0% | | | | 17,528,805 | |
| |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (23.4)% | | | | (135,964,040 | ) |
| |
VMTP Shares, at Liquidation Value — (46.8)% | | | | (270,800,000 | ) |
| | | | | | | | |
| |
Net Assets Applicable to Common Shares — 100.0% | | | $ | 578,807,021 | |
| | | | | | | | |
| (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. |
| (d) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
| (e) | Issuer filed for bankruptcy and/or is in default. |
| (f) | Non-income producing security. |
| (g) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
| (h) | 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. |
| (i) | When-issued security. |
| (j) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (k) | All or a portion of 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 August 15, 2020 to June 1, 2026, is $27,599,129. See Note 4 of the Notes to Financial Statements for details. |
| (l) | Annualized 7-day yield as of period end. |
| (m) | Investments in issuers considered to be an affiliate/affiliates of the Trust during the year ended April 30, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliated Issuer | | Shares
Held at
04/30/19 | | | Shares
Purchased | | | Shares
Sold | | | Shares
Held at
04/30/20 | | | Value at
04/30/20 | | | Income | | | Net
Realized
Gain (Loss) (a) | | | Change in
Unrealized
Appreciation
(Depreciation) | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | 18,183,806 | | | | — | | | | (4,451,373 | )(b) | | | 13,732,433 | | | $ | 13,735,179 | | | $ | 97,242 | | | $ | 206 | | | $ | 7,094 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes net capital gain distributions, if applicable. | |
| | (b) | Represents net shares purchased/sold. | |
Derivative Financial Instruments Categorized by Risk Exposure
For the year ended April 30, 2020, 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 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (10,474,133 | ) | | $ | — | | | $ | (10,474,133 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 213,210 | | | $ | — | | | $ | 213,210 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| 34 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Municipal Income Trust (BFK) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | | | | |
Average notional value of contracts — Long | | $ | — | (a) |
Average notional value of contracts — Short | | $ | 33,069,951 | |
| | (a) | Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period. | |
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. For information about the Trust’s policy regarding valuation of investments, refer to the Notes to Financial Statements.
The following tables summarize the Trust’s investments categorized in the disclosure hierarchy:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | |
Long-Term Investments(a) | | $ | — | | | $ | 952,677,477 | | | $ | 1,629,600 | | | $ | 954,307,077 | |
Short-Term Securities | | | 13,735,179 | | | | — | | | | — | | | | 13,735,179 | |
| | | | | | | | | | | | | | | | |
| | $ | 13,735,179 | | | $ | 952,677,477 | | | $ | 1,629,600 | | | $ | 968,042,256 | |
| | | | | | | | | | | | | | | | |
| | (a) | See above Schedule of Investments for values in each state or political subdivision. | |
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 | | $ | — | | | $ | (135,463,834 | ) | | $ | — | | | $ | (135,463,834 | ) |
VMTP Shares at Liquidation Value | | | — | | | | (270,800,000 | ) | | | — | | | | (270,800,000 | ) |
| | | | | | | | | | | | | | | | |
| | $ | — | | | $ | (406,263,834 | ) | | $ | — | | | $ | (406,263,834 | ) |
| | | | | | | | | | | | | | | | |
See notes to financial statements
| | | | |
| SCHEDULES OF INVESTMENTS | | | 35 | |
| | |
Schedule of Investments April 30, 2020 | | BlackRock Strategic Municipal Trust (BSD) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| | |
Municipal Bonds — 120.0% | | | | | | | | |
|
| Alabama — 2.5% | |
County of Jefferson Alabama Sewer, Refunding RB,Sub-Lien, Series D, 7.00%, 10/01/51 | | $ | 1,115 | | | $ | 1,292,285 | |
Madison Water & Wastewater Board, RB, 3.00%, 12/01/50 | | | 380 | | | | 376,451 | |
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/20(a) | | | 655 | | | | 668,991 | |
| | | | | | | | |
| | | | | | | 2,337,727 | |
|
| Alaska — 0.1% | |
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 4.63%, 06/01/23 | | | 70 | | | | 70,069 | |
| | | | | | | | |
|
| Arizona — 2.1% | |
City of Phoenix Industrial Development Authority, RB, Downtown Phoenix Student Housing, 5.00%, 07/01/59 | | | 465 | | | | 478,345 | |
County of Maricopa IDA, Refunding RB, Honorhealth, Series A, 4.13%, 09/01/38 | | | 230 | | | | 242,312 | |
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37 | | | 1,000 | | | | 1,233,990 | |
| | | | | | | | |
| | | | | | | 1,954,647 | |
|
| Arkansas — 0.8% | |
Arkansas Development Finance Authority, RB, Big River Steel Project, AMT, 4.50%, 09/01/49(b) | | | 835 | | | | 713,048 | |
| | | | | | | | |
|
| California — 6.0% | |
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33 | | | 400 | | | | 436,052 | |
California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A: | | | | | | | | |
5.25%, 08/15/39 | | | 45 | | | | 48,602 | |
5.25%, 08/15/49 | | | 115 | | | | 121,868 | |
California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45(b) | | | 475 | | | | 480,391 | |
California School Finance Authority, RB, Alliance For College-Ready Public School Projects, Series A, 5.00%, 07/01/51(b) | | | 500 | | | | 504,605 | |
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior, Series A, 5.00%, 05/15/40 | | | 735 | | | | 736,352 | |
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/23(a) | | | 110 | | | | 129,944 | |
County of California Tobacco Securitization Agency, Refunding RB, Golden Gate Tobacco Funding Corp., Series A, 5.00%, 06/01/36 | | | 350 | | | | 337,817 | |
Golden State Tobacco Securitization Corp., Refunding RB,Series A-2, 5.00%, 06/01/47 | | | 880 | | | | 858,510 | |
State of California, GO, Refunding, Various Purposes, 4.00%, 03/01/40 | | | 405 | | | | 452,490 | |
State of California, GO, Various Purposes, 6.00%, 03/01/33 | | | 270 | | | | 270,934 | |
State of California Public Works Board, LRB, Various Capital Projects, Series I, 5.00%, 11/01/38 | | | 240 | | | | 261,238 | |
State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33 | | | 915 | | | | 1,021,964 | |
| | | | | | | | |
| | | | | | | 5,660,767 | |
|
| Colorado — 1.7% | |
Denver Convention Center Hotel Authority, Refunding RB, 5.00%, 12/01/40 | | | 1,325 | | | | 1,324,974 | |
Regional Transportation District, COP, Refunding, Series A, 5.38%, 06/01/20(a) | | | 320 | | | | 321,043 | |
| | | | | | | | |
| | | | | | | 1,646,017 | |
|
| Delaware — 2.2% | |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 | | | 820 | | | | 829,422 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Delaware (continued) | |
State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45 | | $ | 1,210 | | | $ | 1,210,254 | |
| | | | | | | | |
| | | | | | | 2,039,676 | |
|
| District of Columbia — 1.3% | |
District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 06/01/41 | | | 690 | | | | 715,454 | |
Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Refunding RB, Subordinate, Dulles Metrorail and Capital Improvement Projects, 4.00%, 10/01/49 | | | 530 | | | | 501,698 | |
| | | | | | | | |
| | | | | | | 1,217,152 | |
|
| Florida — 2.7% | |
County of Broward Airport System Revenue, ARB, AMT, Series A, 4.00%, 10/01/49 | | | 330 | | | | 332,426 | |
County of Osceola Florida Transportation Revenue, Refunding RB,Series A-2(c): | | | | | | | | |
0.00%, 10/01/46 | | | 475 | | | | 159,524 | |
0.00%, 10/01/47 | | | 460 | | | | 147,982 | |
0.00%, 10/01/48 | | | 325 | | | | 100,071 | |
0.00%, 10/01/49 | | | 265 | | | | 78,029 | |
Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(a) | | | 950 | | | | 1,033,761 | |
Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 05/01/43 | | | 695 | | | | 706,801 | |
| | | | | | | | |
| | | | | | | 2,558,594 | |
|
| Georgia — 2.9% | |
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54 | | | 160 | | | | 174,878 | |
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49 | | | 780 | | | | 905,697 | |
Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project: | | | | | | | | |
4.00%, 01/01/49 | | | 535 | | | | 514,739 | |
4.00%, 01/01/59 | | | 1,010 | | | | 938,250 | |
Municipal Electric Authority of Georgia, Refunding RB, Series A, 4.00%, 01/01/49 | | | 200 | | | | 192,426 | |
| | | | | | | | |
| | | | | | | 2,725,990 | |
|
| Hawaii — 0.5% | |
State of Hawaii Harbor System, ARB, Series A, 5.25%, 07/01/30 | | | 425 | | | | 427,741 | |
| | | | | | | | |
|
| Illinois — 17.6% | |
Chicago Board of Education, GO, Project, 5.25%, 12/01/35 | | | 490 | | | | 485,379 | |
Chicago Board of Education, GO, Refunding: | | | | | | | | |
Dedicated Revenues, Series D, 5.00%, 12/01/27 | | | 280 | | | | 283,612 | |
Dedicated Revenues, Series D, 5.00%, 12/01/31 | | | 150 | | | | 149,133 | |
Dedicated Revenues, Series F, 5.00%, 12/01/22 | | | 205 | | | | 208,712 | |
Dedicated Revenues, Series G, 5.00%, 12/01/44 | | | 150 | | | | 131,271 | |
5.00%, 12/01/25 | | | 215 | | | | 219,440 | |
Chicago Board of Education, GO, Series C: | | | | | | | | |
5.00%, 12/01/46 | | | 175 | | | | 157,519 | |
5.00%, 12/01/46 | | | 460 | | | | 397,863 | |
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien: | | | | | | | | |
5.63%, 01/01/35 | | | 155 | | | | 158,111 | |
Series A, 5.75%, 01/01/21(a) | | | 1,260 | | | | 1,301,971 | |
Series A, 5.75%, 01/01/39 | | | 240 | | | | 244,879 | |
Series C, 6.50%, 01/01/21(a) | | | 1,855 | | | | 1,924,284 | |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 | | | 330 | | | | 346,985 | |
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42 | | | 500 | | | | 502,865 | |
| | |
| 36 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Strategic Municipal Trust (BSD) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Illinois (continued) | |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38 | | $ | 245 | | | $ | 248,293 | |
Illinois Finance Authority, Refunding RB: | | | | | | | | |
Ascension Health, Series A, 5.00%, 11/15/21(a) | | | 305 | | | | 324,328 | |
Presence Health Network, Series C, 5.00%, 02/15/41 | | | 1,600 | | | | 1,803,952 | |
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project Bonds, Series A, 5.00%, 06/15/57 | | | 340 | | | | 302,777 | |
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project: | | | | | | | | |
CAB, Series B (AGM), 0.00%, 06/15/44(c) | | | 2,980 | | | | 1,008,164 | |
4.00%, 06/15/50 | | | 350 | | | | 291,448 | |
Series B (AGM), 5.00%, 06/15/50 | | | 1,280 | | | | 1,283,072 | |
Series B-2, 5.00%, 06/15/50 | | | 795 | | | | 795,024 | |
Railsplitter Tobacco Settlement Authority, RB(a): | | | | | | | | |
5.50%, 06/01/21 | | | 175 | | | | 183,727 | |
6.00%, 06/01/21 | | | 940 | | | | 991,973 | |
State of Illinois, GO, 5.00%, 03/01/37 | | | 455 | | | | 407,016 | |
State of Illinois, GO, Refunding, Series B, 5.00%, 10/01/27 | | | 225 | | | | 220,808 | |
State of Illinois, GO, Series A: | | | | | | | | |
5.00%, 04/01/35 | | | 1,000 | | | | 904,260 | |
5.00%, 04/01/38 | | | 1,135 | | | | 1,010,661 | |
University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44 | | | 310 | | | | 321,011 | |
| | | | | | | | |
| | | | | | | 16,608,538 | |
|
| Indiana — 4.2% | |
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT: | | | | | | | | |
6.75%, 01/01/34 | | | 245 | | | | 256,358 | |
7.00%, 01/01/44 | | | 1,090 | | | | 1,142,211 | |
Indiana Finance Authority, RB, Series A: | | | | | | | | |
CWA Authority Project, 1st Lien, 5.25%, 10/01/38 | | | 1,020 | | | | 1,073,867 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44 | | | 140 | | | | 143,280 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48 | | | 465 | | | | 477,276 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51 | | | 125 | | | | 128,065 | |
Indiana Finance Authority, Refunding RB, Marquette Project, 4.75%, 03/01/32 | | | 350 | | | | 341,880 | |
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40 | | | 400 | | | | 436,180 | |
| | | | | | | | |
| | | | | | | 3,999,117 | |
|
| Iowa — 2.3% | |
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project: | | | | | | | | |
Series B, 5.25%, 12/01/50(d) | | | 890 | | | | 848,580 | |
Midwestern Disaster Area, 5.25%, 12/01/25 | | | 145 | | | | 144,285 | |
Midwestern Disaster Area, 5.88%, 12/01/26(b) | | | 130 | | | | 131,929 | |
Iowa Student Loan Liquidity Corp., Refunding RB, AMT, Series B, 3.00%, 12/01/39 | | | 1,150 | | | | 1,082,311 | |
| | | | | | | | |
| | | | | | | 2,207,105 | |
|
| Kentucky — 5.4% | |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(a) | | | 325 | | | | 357,731 | |
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/24(c) | | | 5,000 | | | | 4,435,100 | |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43(e) | | | 375 | | | | 350,392 | |
| | | | | | | | |
| | | | | | | 5,143,223 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Louisiana — 2.8% | |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project,Series A-1, 6.50%, 11/01/35 | | $ | 1,055 | | | $ | 1,068,261 | |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A: | | | | | | | | |
5.50%, 05/15/30 | | | 320 | | | | 320,448 | |
5.25%, 05/15/31 | | | 270 | | | | 277,242 | |
5.25%, 05/15/32 | | | 345 | | | | 362,381 | |
5.25%, 05/15/33 | | | 375 | | | | 393,675 | |
5.25%, 05/15/35 | | | 160 | | | | 169,637 | |
| | | | | | | | |
| | | | | | | 2,591,644 | |
|
| Maryland — 1.4% | |
Maryland EDC, Refunding RB, CNX Marine Terminal, Inc., 5.75%, 09/01/25 | | | 645 | | | | 648,722 | |
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 01/01/21(a) | | | 690 | | | | 713,432 | |
| | | | | | | | |
| | | | | | | 1,362,154 | |
|
| Massachusetts — 1.2% | |
Massachusetts Development Finance Agency, RB: | | | | | | | | |
Emerson College Issue, Series A, 5.00%, 01/01/47 | | | 540 | | | | 563,026 | |
UMass Boston Student Housing Project, 5.00%, 10/01/48 | | | 600 | | | | 598,050 | |
| | | | | | | | |
| | | | | | | 1,161,076 | |
|
| Michigan — 2.7% | |
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39 | | | 1,925 | | | | 2,044,100 | |
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 05/15/36 | | | 195 | | | | 195,220 | |
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien,Series C-1, 5.00%, 07/01/44 | | | 275 | | | | 285,629 | |
| | | | | | | | |
| | | | | | | 2,524,949 | |
|
| Minnesota — 1.7% | |
Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A: | | | | | | | | |
4.25%, 02/15/48 | | | 1,190 | | | | 1,208,838 | |
5.25%, 02/15/58 | | | 400 | | | | 435,400 | |
| | | | | | | | |
| | | | | | | 1,644,238 | |
|
| Missouri — 0.6% | |
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44 | | | 80 | | | | 86,137 | |
County of St. Louis Missouri IDA, Refunding RB, Friendship Village St. Louis Obligated Group, 5.00%, 09/01/37 | | | 500 | | | | 435,585 | |
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43 | | | 80 | | | | 83,652 | |
| | | | | | | | |
| | | | | | | 605,374 | |
|
| Nebraska — 0.8% | |
Central Plains Energy Project, RB, Gas Project No. 3: | | | | | | | | |
5.25%, 09/01/37 | | | 260 | | | | 276,786 | |
5.00%, 09/01/42 | | | 455 | | | | 481,467 | |
| | | | | | | | |
| | | | | | | 758,253 | |
|
| New Hampshire — 0.7% | |
New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta
Project(b): | | | | | | | | |
Series B, 4.63%, 11/01/42 | | | 490 | | | | 439,280 | |
Series C, AMT, 4.88%, 11/01/42 | | | 285 | | | | 257,631 | |
| | | | | | | | |
| | | | | | | 696,911 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 37 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Strategic Municipal Trust (BSD) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| New Jersey — 12.4% | |
Casino Reinvestment Development Authority, Inc., Refunding RB: | | | | | | | | |
5.25%, 11/01/39 | | $ | 320 | | | $ | 307,936 | |
5.25%, 11/01/44 | | | 610 | | | | 567,068 | |
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(b) | | | 340 | | | | 340,809 | |
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel,Sub-Series B,
6.25%, 01/01/37(f)(g) | | | 645 | | | | 9,191 | |
New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23 | | | 1,090 | | | | 1,083,678 | |
New Jersey EDA, RB: | | | | | | | | |
Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 01/01/43 | | | 500 | | | | 508,355 | |
School Facilities Construction, Series EEE, 5.00%, 06/15/43 | | | 1,540 | | | | 1,493,954 | |
New Jersey EDA, Refunding RB, Series BBB, 5.50%, 06/15/31 | | | 775 | | | | 806,263 | |
New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31 | | | 705 | | | | 687,312 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/28 | | | 500 | | | | 552,000 | |
Transportation Program, Series AA, 5.00%, 06/15/45 | | | 415 | | | | 399,309 | |
Transportation System, Series A, 5.50%, 06/15/21(a) | | | 575 | | | | 606,573 | |
Transportation System, Series B, 5.25%, 06/15/36 | | | 790 | | | | 791,541 | |
Rutgers — The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/23(a) | | | 165 | | | | 185,506 | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.00%, 06/01/35 | | | 450 | | | | 502,803 | |
Series A, 5.25%, 06/01/46 | | | 1,065 | | | | 1,134,949 | |
Sub-Series B, 5.00%, 06/01/46 | | | 1,755 | | | | 1,764,337 | |
| | | | | | | | |
| | | | | | | 11,741,584 | |
|
| New York — 10.2% | |
City of New York, GO, Multi Modal,Series D-1, 4.00%, 03/01/44 | | | 375 | | | | 402,600 | |
City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Fiscal 2012,Sub-Series E-1, 5.00%, 02/01/42 | | | 770 | | | | 809,016 | |
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 | | | | 531,875 | |
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41(b) | | | 600 | | | | 598,500 | |
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44 | | | 270 | | | | 284,488 | |
Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38 | | | 750 | | | | 777,975 | |
New York City Housing Development Corp., RB, M/F Housing,Series C-1A, 4.20%, 11/01/44 | | | 1,500 | | | | 1,553,580 | |
New York Liberty Development Corp., Refunding RB, 3 World Trade Center Project(b): | | | | | | | | |
Class 1, 5.00%, 11/15/44 | | | 1,365 | | | | 1,258,107 | |
Class 2, 5.15%, 11/15/34 | | | 105 | | | | 100,647 | |
Class 2, 5.38%, 11/15/40 | | | 265 | | | | 260,529 | |
New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 01/01/50 | | | 1,000 | | | | 1,019,500 | |
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8: | | | | | | | | |
6.00%, 12/01/36 | | | 410 | | | | 417,355 | |
6.00%, 12/01/42 | | | 395 | | | | 397,394 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| New York (continued) | |
State of New York Power Authority, RB, Series A, 4.00%, 11/15/60(h) | | $ | 350 | | | $ | 369,044 | |
State of New York Thruway Authority, Refunding RB, Subordinate, Series B, 4.00%, 01/01/45 | | | 805 | | | | 829,778 | |
| | | | | | | | |
| | | | | | | 9,610,388 | |
|
| North Carolina — 0.8% | |
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21(a) | | | 185 | | | | 195,491 | |
North Carolina Turnpike Authority, RB, Senior Lien, Triangle Express Way System (AGM), 4.00%, 01/01/55 | | | 195 | | | | 199,128 | |
University of North Carolina at Chapel Hill, RB, University of North Carolina Hospital at Chapal Hills, 5.00%, 02/01/45 | | | 295 | | | | 382,146 | |
| | | | | | | | |
| | | | | | | 776,765 | |
|
| Ohio — 2.0% | |
Buckeye Tobacco Settlement Financing Authority, Refunding RB, Senior, Class 2,Series B-2, 5.00%, 06/01/55 | | | 1,125 | | | | 995,265 | |
County of Allen Ohio Hospital Facilities, Refunding RB, Mercy Health, Series A, 4.00%, 11/01/44 | | | 450 | | | | 454,711 | |
County of Franklin Ohio, RB, OPRS Communities Obligation Group, Series A: | | | | | | | | |
6.13%, 07/01/22(a) | | | 15 | | | | 16,696 | |
6.13%, 07/01/40 | | | 195 | | | | 198,171 | |
Ohio Air Quality Development Authority, RB, AMG Vanadium Project, AMT, 5.00%, 07/01/49(b) | | | 250 | | | | 227,135 | |
| | | | | | | | |
| | | | | | | 1,891,978 | |
|
| Oklahoma — 1.0% | |
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48 | | | 390 | | | | 401,302 | |
Tulsa County Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/45 | | | 585 | | | | 560,407 | |
| | | | | | | | |
| | | | | | | 961,709 | |
|
| Oregon — 1.0% | |
County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38(c) | | | 395 | | | | 199,744 | |
State of Oregon Facilities Authority, RB, Student Housing, CHF-Ashland, Southern Oregon University Project (AGM), 5.00%, 07/01/44 | | | 715 | | | | 757,814 | |
| | | | | | | | |
| | | | | | | 957,558 | |
|
| Pennsylvania — 2.6% | |
Allentown Neighborhood Improvement Zone Development Authority, RB, Subordinate, City Center Project(b): | | | | | | | | |
5.00%, 05/01/28 | | | 90 | | | | 90,625 | |
5.13%, 05/01/32 | | | 100 | | | | 99,841 | |
5.38%, 05/01/42 | | | 145 | | | | 138,598 | |
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42 | | | 200 | | | | 206,986 | |
Pennsylvania Economic Development Financing Authority, RB, AMT, 5.00%, 06/30/42 | | | 650 | | | | 654,719 | |
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44 | | | 480 | | | | 411,897 | |
Pennsylvania Higher Educational Facilities Authority, RB, University of Pennsylvania Health System Obligation, 4.00%, 08/15/44 | | | 490 | | | | 517,989 | |
Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44 | | | 345 | | | | 371,396 | |
| | | | | | | | |
| | | | | | | 2,492,051 | |
|
| Puerto Rico — 5.7% | |
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43 | | | 395 | | | | 389,115 | |
| | |
| 38 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Strategic Municipal Trust (BSD) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Puerto Rico (continued) | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A: | | | | | | | | |
5.00%, 07/01/33 | | $ | 830 | | | $ | 788,375 | |
5.13%, 07/01/37 | | | 240 | | | | 226,606 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A: | | | | | | | | |
6.00%, 07/01/38 | | | 245 | | | | 242,971 | |
6.00%, 07/01/44 | | | 440 | | | | 439,921 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured: | | | | | | | | |
Series A-1, 4.75%, 07/01/53 | | | 528 | | | | 475,638 | |
Series A-1, 5.00%, 07/01/58 | | | 2,167 | | | | 2,024,021 | |
Series A-2, 4.33%, 07/01/40 | | | 345 | | | | 308,120 | |
Series A-2, 4.78%, 07/01/58 | | | 567 | | | | 510,408 | |
| | | | | | | | |
| | | | | | | 5,405,175 | |
|
| Rhode Island — 2.7% | |
Tobacco Settlement Financing Corp., Refunding RB, Series B: | | | | | | | | |
4.50%, 06/01/45 | | | 830 | | | | 846,060 | |
5.00%, 06/01/50 | | | 1,580 | | | | 1,651,195 | |
| | | | | | | | |
| | | | | | | 2,497,255 | |
|
| South Carolina — 3.7% | |
State of South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/43 | | | 680 | | | | 734,665 | |
State of South Carolina Ports Authority, ARB, AMT, 5.25%, 07/01/25(a) | | | 335 | | | | 399,277 | |
State of South Carolina Public Service Authority, RB: | | | | | | | | |
Santee Cooper, Series A, 5.50%, 12/01/54 | | | 1,235 | | | | 1,303,468 | |
Series E, 5.50%, 12/01/53 | | | 500 | | | | 525,530 | |
State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55 | | | 540 | | | | 571,752 | |
| | | | | | | | |
| | | | | | | 3,534,692 | |
|
| Tennessee — 0.5% | |
City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(a) | | | 440 | | | | 487,494 | |
| | | | | | | | |
|
| Texas — 9.4% | |
Brazos Higher Education Authority, Inc., RB, Subordinate, Student Loan Program, Series 1B (AMT), 3.00%, 04/01/40 | | | 175 | | | | 148,082 | |
Central Texas Regional Mobility Authority, Refunding RB: | | | | | | | | |
Senior Lien, 6.25%, 01/01/21(a) | | | 680 | | | | 704,725 | |
Sub-Lien, 5.00%, 01/01/33 | | | 115 | | | | 118,123 | |
City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 07/01/29 | | | 135 | | | | 133,615 | |
Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 08/15/43 | | | 230 | | | | 253,941 | |
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 | | | | 168,051 | |
County of Harris Texas-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC) (AGM), 0.00%, 11/15/38(c) | | | 4,750 | | | | 2,077,317 | |
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 | | | | 2,253,219 | |
North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 09/01/31(a)(c) | | | 640 | | | | 328,864 | |
North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49 | | | 565 | | | | 610,980 | |
Texas Private Activity Bond Surface Transportation Corp., RB: | | | | | | | | |
Segment 3C Project, AMT, 5.00%, 06/30/58 | | | 650 | | | | 672,496 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Texas (continued) | |
Senior Lien, Blueridge Transportation Group, AMT, 5.00%, 12/31/55 | | $ | 450 | | | $ | 425,506 | |
Senior Lien, LBJ Infrastructure Group LLC, 7.00%, 06/30/40 | | | 500 | | | | 501,210 | |
Texas Transportation Commission, RB, First Tier Toll Revenue(c): | | | | | | | | |
CAB, 0.00%, 08/01/42 | | | 855 | | | | 297,891 | |
0.00%, 08/01/40 | | | 500 | | | | 194,530 | |
| | | | | | | | |
| | | | | | | 8,888,550 | |
|
| Virginia — 2.2% | |
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A: | | | | | | | | |
5.00%, 03/01/26 | | | 165 | | | | 163,155 | |
5.13%, 03/01/31 | | | 320 | | | | 306,854 | |
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT: | | | | | | | | |
5.25%, 01/01/32 | | | 250 | | | | 254,363 | |
6.00%, 01/01/37 | | | 1,320 | | | | 1,360,696 | |
| | | | | | | | |
| | | | | | | 2,085,068 | |
|
| Washington — 1.1% | |
Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40 | | | 235 | | | | 249,213 | |
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45 | | | 715 | | | | 766,480 | |
| | | | | | | | |
| | | | | | | 1,015,693 | |
|
| Wisconsin — 0.5% | |
Public Finance Authority, Refunding RB, Wingate University, Series A, 5.25%, 10/01/48 | | | 425 | | | | 454,865 | |
| | | | | | | | |
| |
Total Municipal Bonds — 120.0%
(Cost — $111,276,385) | | | | 113,454,835 | |
| | | | | | | | |
|
Municipal Bonds Transferred to Tender Option Bond Trusts — 48.1%(i) | |
| | |
California — 5.0% | | | | | | | | |
City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, Series B, AMT, 5.00%, 05/15/46 | | | 2,000 | | | | 2,160,160 | |
Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2, Series A, 5.00%, 10/01/43 | | | 2,160 | | | | 2,514,585 | |
| | | | | | | | |
| | | | | | | 4,674,745 | |
|
| Colorado — 2.5% | |
Colorado Health Facilities Authority, Refunding RB, Commonspirit Health, Series A, 4.00%, 08/01/49(j) | | | 1,130 | | | | 1,089,388 | |
County of Adams Colorado, COP, Refunding, 4.00%, 12/01/45 | | | 1,180 | | | | 1,252,546 | |
| | | | | | | | |
| | | | | | | 2,341,934 | |
|
| District of Columbia — 0.6% | |
District of Columbia Housing Finance Agency, RB, M/F Housing,Series B-2 (FHA), 4.10%, 09/01/39 | | | 520 | | | | 564,850 | |
| | | | | | | | |
|
| Florida — 1.8% | |
Escambia County Health Facilities Authority, Refunding RB, Health Care Facilities Revenue Bonds, 4.00%, 08/15/45(b)(d)(j) | | | 1,751 | | | | 1,712,955 | |
| | | | | | | | |
|
| Georgia — 1.1% | |
County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48(b)(d) | | | 1,025 | | | | 1,057,154 | |
| | | | | | | | |
|
| Idaho — 1.5% | |
Idaho State Building Authority, RB, State Office Campus Project, Series A, 4.00%, 09/01/48 | | | 1,330 | | | | 1,448,649 | |
| | | | | | | | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 39 | |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Strategic Municipal Trust (BSD) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Illinois — 2.3% | |
State of Illinois Toll Highway Authority, RB, Series C, 5.00%, 01/01/38 | | $ | 1,997 | | | $ | 2,181,747 | |
| | | | | | | | |
|
| Iowa — 1.2% | |
Iowa Finance Authority, Refunding RB, UnityPoint Health, Series E, 4.00%, 08/15/46 | | | 1,125 | | | | 1,151,179 | |
| | | | | | | | |
|
| Massachusetts — 2.3% | |
Massachusetts Housing Finance Agency, Refunding RB, Series A, AMT, 4.50%, 12/01/47 | | | 1,305 | | | | 1,371,384 | |
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/21(a) | | | 720 | | | | 764,440 | |
| | | | | | | | |
| | | | | | | 2,135,824 | |
|
| Michigan — 3.7% | |
Michigan Finance Authority, RB, Multi Model- McLaren Health Care, 4.00%, 02/15/47 | | | 1,248 | | | | 1,290,344 | |
Michigan State Housing Development Authority, RB, M/F Housing, Series A, 4.15%, 10/01/53 | | | 2,117 | | | | 2,237,073 | |
| | | | | | | | |
| | | | | | | 3,527,417 | |
|
| 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 | | | | 1,560,594 | |
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(j): | | | | | | | | |
5.75%, 02/15/21(a) | | | 310 | | | | 320,448 | |
5.75%, 02/15/47 | | | 190 | | | | 197,130 | |
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43 | | | 3,375 | | | | 3,539,095 | |
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(j) | | | 2,030 | | | | 2,117,345 | |
Port Authority of New York & New Jersey, Refunding ARB, Series194th, 5.25%, 10/15/55 | | | 810 | | | | 892,733 | |
| | | | | | | | |
| | | | | | | 8,627,345 | |
|
| North Carolina — 1.8% | |
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55 | | | 800 | | | | 912,408 | |
North Carolina Housing Finance Agency, RB, S/F Housing,Series 39-B (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 01/01/48(b)(d) | | | 717 | | | | 765,327 | |
| | | | | | | | |
| | | | | | | 1,677,735 | |
|
| Pennsylvania — 7.1% | |
County of Lehigh Pennsylvania, Refunding RB, Lehigh Valley Health Network, 4.00%, 07/01/49(b)(d)(j) | | | 2,501 | | | | 2,528,291 | |
County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/38 | | | 1,034 | | | | 1,178,927 | |
Pennsylvania Turnpike Commission, RB,Sub-Series A, 5.50%, 12/01/42 | | | 1,379 | | | | 1,550,707 | |
Pennsylvania Turnpike Commission, Refunding RB, SubSeries B-2 (AGM), 5.00%, 06/01/35 | | | 1,280 | | | | 1,469,530 | |
| | | | | | | | |
| | | | | | | 6,727,455 | |
|
| Rhode Island — 1.8% | |
Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 09/15/47 | | | 1,532 | | | | 1,676,843 | |
| | | | | | | | |
|
| Texas — 3.2% | |
City of San Antonio Texas Electric & Gas Systems Revenue, RB, Junior Lien, 5.00%, 02/01/43 | | | 780 | | | | 848,585 | |
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/21(a) | | | 1,080 | | | | 1,147,533 | |
University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43 | | | 975 | | | | 1,051,298 | |
| | | | | | | | |
| | | | | | | 3,047,416 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
|
| Virginia — 1.8% | |
Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A, 5.50%, 07/01/57(j) | | $ | 1,413 | | | $ | 1,695,543 | |
| | | | | | | | |
|
| West Virginia — 1.3% | |
Morgantown Utility Board, Inc., RB, Series B, 4.00%, 12/01/48(j) | | | 1,161 | | | | 1,226,709 | |
| | | | | | | | |
| |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 48.1%
(Cost — $44,279,280) | | | | 45,475,500 | |
| | | | | | | | |
| |
TotalLong-Term Investments — 168.1%
(Cost — $155,555,665) | | | | 158,930,335 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
|
| Short-Term Securities — 1.5% | |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.15%(k)(l) | | | 1,394,020 | | | | 1,394,299 | |
| | | | | | | | |
| |
TotalShort-Term Securities — 1.5%
(Cost — $1,394,299) | | | | 1,394,299 | |
| | | | | | | | |
| |
Total Investments — 169.6%
(Cost — $156,949,964) | | | | 160,324,634 | |
| |
Other Assets Less Liabilities — 3.0% | | | | 2,892,693 | |
| |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (27.2)% | | | | (25,762,821 | ) |
| |
VMTP Shares, at Liquidation Value — (45.4)% | | | | (42,900,000 | ) |
| | | | | �� | | | |
| |
Net Assets Applicable to Common Shares — 100.0% | | | $ | 94,554,506 | |
| | | | | | | | |
| (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) | When-issued security. |
| (i) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (j) | All or a portion of 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 August 15, 2020 to February 15, 2028, is $6,151,734. See Note 4 of the Notes to Financial Statements for details. |
| (k) | Annualized 7-day yield as of period end. |
| | |
| 40 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (continued) April 30, 2020 | | BlackRock Strategic Municipal Trust (BSD) |
| (l) | Investments in issuers considered to be an affiliate/affiliates of the Trust during the year ended April 30, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliated Issuer | | Shares
Held at
04/30/19 | | | Shares
Purchased | | | Shares
Sold | | | Shares
Held at
04/30/20 | | | Value at
04/30/20 | | | Income | | | Net
Realized
Gain (Loss) (a) | | | Change in
Unrealized
Appreciation
(Depreciation) | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | — | | | | 1,394,020 | (b) | | | — | | | | 1,394,020 | | | $ | 1,394,299 | | | $ | 6,194 | | | $ | 1,413 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes net capital gain distributions, if applicable. | |
| | (b) | Represents net shares purchased (sold). | |
Derivative Financial Instruments Categorized by Risk Exposure
For the year ended April 30, 2020, 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 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (2,008,429 | ) | | $ | — | | | $ | (2,008,429 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 42,843 | | | $ | — | | | $ | 42,843 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments:
| | | | |
Futures contracts: | | | | |
Average notional value of contracts — short | | $ | 6,223,203 | |
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. For information about the Trust’s policy regarding valuation of investments, refer to the Notes to Financial Statements.
The following tables summarize the Trust’s investments categorized in the disclosure hierarchy:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | | | | |
Long-Term Investments(a) | | $ | — | | | $ | 158,930,335 | | | $ | — | | | $ | 158,930,335 | |
Short-Term Securities | | | 1,394,299 | | | | — | | | | — | | | | 1,394,299 | |
| | | | | | | | | | | | | | | | |
| | $ | 1,394,299 | | | $ | 158,930,335 | | | $ | — | | | $ | 160,324,634 | |
| | | | | | | | | | | | | | | | |
| | (a) | See above Schedule of Investments for values in each state or political subdivision. | |
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 | | $ | — | | | $ | (25,654,427 | ) | | $ | — | | | $ | (25,654,427 | ) |
VMTP Shares at Liquidation Value | | | — | | | | (42,900,000 | ) | | | — | | | | (42,900,000 | ) |
| | | | | | | | | | | | | | | | |
| | $ | — | | | $ | (68,554,427 | ) | | $ | — | | | $ | (68,554,427 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 41 | |
Statements of Assets and Liabilities
April 30, 2020
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
| | | | |
ASSETS | | | | | | | | | | | | | | | | |
Investments at value — unaffiliated(a) | | $ | 429,713,541 | | | $ | 259,167,606 | | | $ | 954,307,077 | | | $ | 158,930,335 | |
Investments at value — affiliated(b) | | | 4,003,899 | | | | 677,105 | | | | 13,735,179 | | | | 1,394,299 | |
Cash | | | — | | | | 702 | | | | — | | | | 436 | |
Receivables: | |
Investments sold | | | 1,569,657 | | | | 1,707,665 | | | | 10,091,013 | | | | 1,873,591 | |
Dividends — affiliated | | | 723 | | | | 121 | | | | 5,828 | | | | 91 | |
Interest — unaffiliated | | | 5,278,924 | | | | 3,858,805 | | | | 14,008,771 | | | | 2,258,360 | |
Prepaid expenses | | | 23,660 | | | | 38,956 | | | | 22,433 | | | | 24,152 | |
| | | | | | | | | | | | | | | | |
Total assets | | | 440,590,404 | | | | 265,450,960 | | | | 992,170,301 | | | | 164,481,264 | |
| | | | | | | | | | | | | | | | |
| | | | |
ACCRUED LIABILITIES | | | | | | | | | | | | | | | | |
Payables: | | | | | | | | | | | | | | | | |
Investments purchased | | | 855,456 | | | | 1,387,442 | | | | 2,798,397 | | | | 588,904 | |
Administration fees | | | 112,030 | | | | — | | | | — | | | | — | |
Income dividend distributions — Common Shares | | | 1,013,966 | | | | 678,014 | | | | 2,398,477 | | | | 401,950 | |
Interest expense and fees | | | 262,883 | | | | 143,323 | | | | 500,206 | | | | 108,394 | |
Investment advisory fees | | | 261,110 | | | | 263,405 | | | | 1,007,013 | | | | 167,975 | |
Trustees’ and Officer’s fees | | | 63,686 | | | | 20,746 | | | | 213,678 | | | | 15,128 | |
Other accrued expenses | | | 124,904 | | | | 94,196 | | | | 181,675 | | | | 89,980 | |
| | | | | | | | | | | | | | | | |
Total accrued liabilities | | | 2,694,035 | | | | 2,587,126 | | | | 7,099,446 | | | | 1,372,331 | |
| | | | | | | | | | | | | | | | |
| | | | |
OTHER LIABILITIES | | | | | | | | | | | | | | | | |
TOB Trust Certificates | | | 56,112,087 | | | | 36,907,873 | | | | 135,463,834 | | | | 25,654,427 | |
VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)(e) | | | — | | | | 75,612,012 | | | | — | | | | — | |
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 | | | 182,012,087 | | | | 112,519,885 | | | | 406,263,834 | | | | 68,554,427 | |
| | | | | | | | | | | | | | | | |
Total liabilities | | | 184,706,122 | | | | 115,107,011 | | | | 413,363,280 | | | | 69,926,758 | |
| | | | | | | | | | | | | | | | |
| | | | |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | | $ | 255,884,282 | | | $ | 150,343,949 | | | $ | 578,807,021 | | | $ | 94,554,506 | |
| | | | | | | | | | | | | | | | |
| | | | |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF | | | | | | | | | | | | | | | | |
Paid-in capital(e)(f)(g) | | $ | 238,727,657 | | | $ | 156,278,770 | | | $ | 590,887,916 | | | $ | 94,243,839 | |
Accumulated earnings (loss) | | | 17,156,625 | | | | (5,934,821 | ) | | | (12,080,895 | ) | | | 310,667 | |
| | | | | | | | | | | | | | | | |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | | $ | 255,884,282 | | | $ | 150,343,949 | | | $ | 578,807,021 | | | $ | 94,554,506 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net asset value, offering and redemption price per share | | $ | 14.89 | | | $ | 11.20 | | | $ | 12.91 | | | $ | 12.94 | |
| | | | | | | | | | | | | | | | |
| | | | |
(a) Investments at cost — unaffiliated | | $ | 408,310,391 | | | $ | 258,124,859 | | | $ | 945,216,154 | | | $ | 155,555,665 | |
(b) Investments at cost — affiliated | | $ | 4,003,373 | | | $ | 677,098 | | | $ | 13,729,814 | | | $ | 1,394,299 | |
(c) Preferred Shares outstanding | | | 1,259 | | | | 760 | | | | 2,708 | | | | 429 | |
(d) Preferred Shares authorized | | | 7,121 | | | | Unlimited | | | | Unlimited | | | | Unlimited | |
(e) Par value per Preferred Share and Common Share | | $ | 0.10 | | | $ | 0.001 | | | $ | 0.001 | | | $ | 0.001 | |
(f) Common Shares outstanding | | | 17,185,859 | | | | 13,426,027 | | | | 44,831,340 | | | | 7,308,173 | |
(g) Common Shares authorized | | | 199,994,138 | | | | Unlimited | | | | Unlimited | | | | Unlimited | |
See notes to financial statements.
| | |
| 42 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Statements of Operations
Year Ended April 30, 2020
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
|
INVESTMENT INCOME | |
Dividends — affiliated | | $ | 14,579 | | | $ | 9,324 | | | $ | 97,242 | | | $ | 6,194 | |
Interest — unaffiliated | | | 18,638,154 | | | | 12,308,632 | | | | 44,827,257 | | | | 7,574,350 | |
| | | | | | | | | | | | | | | | |
Total investment income | | | 18,652,733 | | | | 12,317,956 | | | | 44,924,499 | | | | 7,580,544 | |
| | | | | | | | | | | | | | | | |
|
EXPENSES | |
Investment advisory | | | 1,609,254 | | | | 1,699,304 | | | | 6,193,177 | | | | 1,044,859 | |
Administration | | | 689,680 | | | | — | | | | — | | | | — | |
Accounting services | | | 69,312 | | | | 29,377 | | | | 84,288 | | | | 41,138 | |
Professional | | | 69,208 | | | | 71,391 | | | | 115,255 | | | | 58,054 | |
Rating agency | | | 46,484 | | | | 30,545 | | | | 46,506 | | | | 58,367 | |
Transfer agent | | | 31,841 | | | | 21,728 | | | | 47,829 | | | | 20,019 | |
Trustees and Officer | | | 16,228 | | | | 11,791 | | | | 32,466 | | | | 7,657 | |
Custodian | | | 10,980 | | | | 10,123 | | | | 12,940 | | | | 10,515 | |
Printing | | | 10,954 | | | | 8,995 | | | | 13,028 | | | | 8,534 | |
Registration | | | 9,055 | | | | 9,055 | | | | 16,632 | | | | 9,056 | |
Liquidity fees | | | — | | | | 7,760 | | | | — | | | | — | |
Remarketing fees on Preferred Shares | | | — | | | | 7,619 | | | | — | | | | — | |
Miscellaneous | | | 17,978 | | | | 14,790 | | | | 20,540 | | | | 10,602 | |
| | | | | | | | | | | | | | | | |
Total expenses excluding interest expense, fees and amortization of offering costs | | | 2,580,974 | | | | 1,922,478 | | | | 6,582,661 | | | | 1,268,801 | |
Interest expense, fees and amortization of offering costs(a) | | | 3,854,813 | | | | 2,388,088 | | | | 8,247,629 | | | | 1,466,529 | |
| | | | | | | | | | | | | | | | |
Total expenses | | | 6,435,787 | | | | 4,310,566 | | | | 14,830,290 | | | | 2,735,330 | |
Less fees waived and/or reimbursed by the Manager | | | (1,062 | ) | | | (715 | ) | | | (7,436 | ) | | | (486 | ) |
| | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed | | | 6,434,725 | | | | 4,309,851 | | | | 14,822,854 | | | | 2,734,844 | |
| | | | | | | | | | | | | | | | |
Net investment income | | | 12,218,008 | | | | 8,008,105 | | | | 30,101,645 | | | | 4,845,700 | |
| | | | | | | | | | | | | | | | |
|
REALIZED AND UNREALIZED GAIN (LOSS) | |
Net realized gain (loss) from: | |
Futures contracts | | | (4,804,290 | ) | | | (3,083,691 | ) | | | (10,474,133 | ) | | | (2,008,429 | ) |
Investments — affiliated | | | 3,034 | | | | 774 | | | | 206 | | | | 1,413 | |
Investments — unaffiliated | | | 920,320 | | | | (133,062 | ) | | | 2,414,404 | | | | (178,058 | ) |
| | | | | | | | | | | | | | | | |
| | | (3,880,936 | ) | | | (3,215,979 | ) | | | (8,059,523 | ) | | | (2,185,074 | ) |
| | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | |
Futures contracts | | | 165,984 | | | | 60,522 | | | | 213,210 | | | | 42,843 | |
Investments — affiliated | | | 526 | | | | 7 | | | | 7,094 | | | | — | |
Investments — unaffiliated | | | (11,502,239 | ) | | | (13,853,199 | ) | | | (49,300,899 | ) | | | (6,728,069 | ) |
| | | | | | | | | | | | | | | | |
| | | (11,335,729 | ) | | | (13,792,670 | ) | | | (49,080,595 | ) | | | (6,685,226 | ) |
| | | | | | | | | | | | | | | | |
Net realized and unrealized loss | | | (15,216,665 | ) | | | (17,008,649 | ) | | | (57,140,118 | ) | | | (8,870,300 | ) |
| | | | | | | | | | | | | | | | |
NET DECREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS | | $ | (2,998,657 | ) | | $ | (9,000,544 | ) | | $ | (27,038,473 | ) | | $ | (4,024,600 | ) |
| | | | | | | | | | | | | | | | |
| (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, | |
| | | 2020 | | | 2019 | | | | | | 2020 | | | 2019 | |
| | | | | |
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | | | | | | | | | | | | | | | | | | | | |
| | | | | |
OPERATIONS | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 12,218,008 | | | $ | 12,176,372 | | | | | | | $ | 8,008,105 | | | $ | 8,367,102 | |
Net realized loss | | | (3,880,936 | ) | | | (1,165,399 | ) | | | | | | | (3,215,979 | ) | | | (42,311 | ) |
Net change in unrealized appreciation (depreciation) | | | (11,335,729 | ) | | | 9,310,633 | | | | | | | | (13,792,670 | ) | | | 2,841,284 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | | | (2,998,657 | ) | | | 20,321,606 | | | | | | | | (9,000,544 | ) | | | 11,166,075 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
DISTRIBUTIONS TO COMMON SHAREHOLDERS(a) | | | | | | | | | | | | | | | | | | | | |
Decrease in net assets resulting from distributions to Common Shareholders | | | (11,823,871 | ) | | | (11,812,459 | ) | | | | | | | (8,135,464 | ) | | | (8,521,852 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
CAPITAL SHARE TRANSACTIONS | | | | | | | | | | | | | | | | | | | | |
Reinvestment of common distributions | | | — | | | | — | | | | | | | | 48,840 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | | | | | | | | | | | | | | | | | | | | |
Total increase (decrease) in net assets applicable to Common Shareholders | | | (14,822,528 | ) | | | 8,509,147 | | | | | | | | (17,087,168 | ) | | | 2,644,223 | |
Beginning of year | | | 270,706,810 | | | | 262,197,663 | | | | | | | | 167,431,117 | | | | 164,786,894 | |
| | | | | | | | | | | | | | | | | | | | |
End of year | | $ | 255,884,282 | | | $ | 270,706,810 | | | | | | | $ | 150,343,949 | | | $ | 167,431,117 | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
| | |
| 44 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | BFK | | | | | | BSD | |
| | | Year Ended April 30, | | | | | | Year Ended April 30, | |
| | | 2020 | | | 2019 | | | | | | 2020 | | | 2019 | |
| | | | | |
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | | | | | | | | | | | | | | | | | | | | |
| | | | | |
OPERATIONS | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 30,101,645 | | | $ | 30,368,713 | | | | | | | $ | 4,845,700 | | | $ | 4,989,987 | |
Net realized loss | | | (8,059,523 | ) | | | (2,100,964 | ) | | | | | | | (2,185,074 | ) | | | 52,467 | |
Net change in unrealized appreciation (depreciation) | | | (49,080,595 | ) | | | 11,675,006 | | | | | | | | (6,685,226 | ) | | | 1,398,382 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | | | (27,038,473 | ) | | | 39,942,755 | | | | | | | | (4,024,600 | ) | | | 6,440,836 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
DISTRIBUTIONS TO COMMON SHAREHOLDERS(a) | | | | | | | | | | | | | | | | | | | | |
Decrease in net assets resulting from distributions to Common Shareholders | | | (29,230,034 | ) | | | (31,471,601 | ) | | | | | | | (4,852,594 | ) | | | (5,006,165 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
CAPITAL SHARE TRANSACTIONS | | | | | | | | | | | | | | | | | | | | |
Reinvestment of common distributions | | | — | | | | — | | | | | | | | 2,164 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS | | | | | | | | | | | | | | | | | | | | |
Total increase (decrease) in net assets applicable to Common Shareholders | | | (56,268,507 | ) | | | 8,471,154 | | | | | | | | (8,875,030 | ) | | | 1,434,671 | |
Beginning of year | | | 635,075,528 | | | | 626,604,374 | | | | | | | | 103,429,536 | | | | 101,994,865 | |
| | | | | | | | | | | | | | | | | | | | |
End of year | | $ | 578,807,021 | | | $ | 635,075,528 | | | | | | | $ | 94,554,506 | | | $ | 103,429,536 | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
Statements of Cash Flows
Year Ended April 30, 2020
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
| | | | |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | | | | | | | | | | | | | | | | |
Net decrease in net assets resulting from operations | | $ | (2,998,657 | ) | | $ | (9,000,544 | ) | | $ | (27,038,473 | ) | | $ | (4,024,600 | ) |
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities: | | | | | | | | | | | | | | | | |
Proceeds from sales of long-term investments and principal paydowns | | | 73,980,955 | | | | 96,498,049 | | | | 165,417,276 | | | | 60,971,957 | |
Purchases of long-term investments | | | (70,567,340 | ) | | | (95,798,887 | ) | | | (180,121,485 | ) | | | (56,984,982 | ) |
Net proceeds from sales (purchases) of short-term securities | | | (3,096,711 | ) | | | (282,730 | ) | | | 4,457,745 | | | | (1,392,886 | ) |
Amortization of premium and accretion of discount on investments and other fees | | | (1,061,136 | ) | | | 451,271 | | | | 1,796,911 | | | | (2,779 | ) |
Net realized (gain) loss on investments | | | (923,354 | ) | | | 132,288 | | | | (2,414,610 | ) | | | 176,645 | |
Net unrealized depreciation on investments | | | 11,501,713 | | | | 13,853,192 | | | | 49,293,805 | | | | 6,728,069 | |
| | | | |
(Increase) Decrease in Assets: | | | | | | | | | | | | | | | | |
Receivables: | | | | | | | | | | | | | | | | |
Dividends — affiliated | | | 166 | | | | 696 | | | | 17,990 | | | | 26 | |
Interest — unaffiliated | | | 190,945 | | | | 114,477 | | | | 1,017,193 | | | | 181,055 | |
Prepaid expenses | | | (2,012 | ) | | | (19,346 | ) | | | 7,022 | | | | (3,732 | ) |
| | | | |
Increase (Decrease) in Liabilities: | | | | | | | | | | | | | | | | |
Payables: | | | | | | | | | | | | | | | | |
Administration fees | | | 57,150 | | | | — | | | | — | | | | — | |
Investment advisory fees | | | 133,110 | | | | 126,584 | | | | 504,295 | | | | 82,828 | |
Interest expense and fees | | | (1,005 | ) | | | 4,778 | | | | (106,706 | ) | | | (17,460 | ) |
Trustees’ and Officer’s fees | | | (4,130 | ) | | | (1,262 | ) | | | (26,506 | ) | | | (972 | ) |
Variation margin on futures contracts | | | (94,767 | ) | | | (44,360 | ) | | | (159,313 | ) | | | (28,457 | ) |
Other accrued expenses | | | (36,423 | ) | | | (18,015 | ) | | | (38,080 | ) | | | (21,459 | ) |
| | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | | 7,078,504 | | | | 6,016,191 | | | | 12,607,064 | | | | 5,663,253 | |
| | | | | | | | | | | | | | | | |
| | | | |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | | | | | | | | | | | | | | | | |
Proceeds from TOB Trust Certificates | | | 9,330,556 | | | | 14,974,703 | | | | 55,785,980 | | | | 6,573,025 | |
Repayments of TOB Trust Certificates | | | (5,217,533 | ) | | | (12,661,465 | ) | | | (39,945,873 | ) | | | (7,757,309 | ) |
Proceeds from Loan for TOB Trust Certificates | | | 2,857,447 | | | | 4,242,373 | | | | 14,369,517 | | | | 692,796 | |
Repayments of Loan for TOB Trust Certificates | | | (2,857,447 | ) | | | (4,242,373 | ) | | | (14,369,517 | ) | | | (692,796 | ) |
Cash dividends paid to Common Shareholders | | | (11,789,499 | ) | | | (8,086,433 | ) | | | (29,454,190 | ) | | | (4,865,037 | ) |
Increase (decrease) in bank overdraft | | | — | | | | (485,140 | ) | | | — | | | | — | |
Amortization of deferred offering costs | | | — | | | | 15,246 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net cash used for financing activities | | | (7,676,476 | ) | | | (6,243,089 | ) | | | (13,614,083 | ) | | | (6,049,321 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
CASH | | | | | | | | | | | | | | | | |
Net decrease in restricted and unrestricted cash | | | (597,972 | ) | | | (226,898 | ) | | | (1,007,019 | ) | | | (386,068 | ) |
Restricted and unrestricted cash at beginning of year | | | 597,972 | | | | 227,600 | | | | 1,007,019 | | | | 386,504 | |
| | | | | | | | | | | | | | | | |
Restricted and unrestricted cash at end of year | | $ | — | | | $ | 702 | | | $ | — | | | $ | 436 | |
| | | | | | | | | | | | | | | | |
| | | | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | | | | | | | | | | | | | | | | |
Cash paid during the year for interest expense | | $ | 3,855,818 | | | $ | 2,368,064 | | | $ | 8,354,335 | | | $ | 1,483,989 | |
| | | | | | | | | | | | | | | | |
| | | | |
NON-CASH FINANCING ACTIVITIES | | | | | | | | | | | | | | | | |
Capital shares issued in reinvestment of distributions paid to Common Shareholders | | $ | — | | | $ | 48,840 | | | $ | — | | | $ | 2,164 | |
| | | | | | | | | | | | | | | | |
| | | | |
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF YEAR TO THE STATEMENTS OF ASSETS AND LIABILITIES | | | | | | | | | | | | | | | | |
Cash | | $ | — | | | $ | 702 | | | $ | — | | | $ | 436 | |
| | | | | | | | | | | | | | | | |
| | | | |
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR TO THE STATEMENTS OF ASSETS AND LIABILITIES | | | | | | | | | | | | | | | | |
Cash | | $ | 113,922 | | | $ | — | | | $ | 192,219 | | | $ | 240,904 | |
Cash pledged for futures contracts | | | 484,050 | | | | 227,600 | | | | 814,800 | | | | 145,600 | |
| | | | | | | | | | | | | | | | |
| | $ | 597,972 | | | $ | 227,600 | | | $ | 1,007,019 | | | $ | 386,504 | |
| | | | | | | | | | | | | | | | |
| | |
| 46 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | |
| | | BKN | |
| |
| | | Year Ended April 30, | |
| | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| | | | | |
Net asset value, beginning of year | | $ | 15.75 | | | $ | 15.26 | | | $ | 15.39 | | | $ | 16.83 | | | $ | 16.09 | |
| | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.71 | | | | 0.71 | | | | 0.73 | | | | 0.79 | | | | 0.88 | |
Net realized and unrealized gain (loss) | | | (0.88 | ) | | | 0.46 | | | | 0.02 | | | | (1.12 | ) | | | 0.77 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.17 | ) | | | 1.17 | | | | 0.75 | | | | (0.33 | ) | | | 1.65 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Distributions to Common Shareholders(b) | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.69 | ) | | | (0.68 | ) | | | (0.73 | ) | | | (0.85 | ) | | | (0.91 | ) |
From net realized gain | | | — | | | | (0.00 | )(c) | | | (0.15 | ) | | | (0.26 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total distributions to Common Shareholders | | | (0.69 | ) | | | (0.68 | ) | | | (0.88 | ) | | | (1.11 | ) | | | (0.91 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of year | | $ | 14.89 | | | $ | 15.75 | | | $ | 15.26 | | | $ | 15.39 | | | $ | 16.83 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Market price, end of year | | $ | 14.75 | | | $ | 14.31 | | | $ | 13.57 | | | $ | 14.59 | | | $ | 16.94 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Return Applicable to Common Shareholders(d) | | | | | | | | | | | | | | | | | | | | |
Based on net asset value | | | (1.16 | )% | | | 8.45 | % | | | 5.34 | % | | | (1.84 | )% | | | 10.92 | % |
| | | | | | | | | | | | | | | | | | | | |
Based on market price | | | 7.77 | % | | | 10.81 | % | | | (1.20 | )% | | | (7.55 | )% | | | 15.15 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Ratios to Average Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 2.31 | % | | | 2.53 | % | | | 2.12 | % | | | 1.84 | % | | | 1.46 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 2.31 | % | | | 2.53 | % | | | 2.11 | % | | | 1.84 | % | | | 1.46 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(e) | | | 0.93 | % | | | 0.94 | % | | | 0.90 | % | | | 0.90 | % | | | 0.89 | % |
| | | | | | | | | | | | | | | | | | | | |
Net investment income to Common Shareholders | | | 4.39 | % | | | 4.64 | % | | | 4.64 | % | | | 4.87 | % | | | 5.48 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | |
Net assets applicable to Common Shareholders, end of year (000) | | $ | 255,884 | | | $ | 270,707 | | | $ | 262,198 | | | $ | 264,551 | | | $ | 289,003 | |
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | 303,244 | | | $ | 315,017 | | | $ | 308,259 | | | $ | 310,128 | | | $ | 329,549 | |
| | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of year (000) | | $ | 56,112 | | | $ | 51,999 | | | $ | 41,043 | | | $ | 30,783 | | | $ | 31,286 | |
| | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 16 | % | | | 29 | % | | | 31 | % | | | 36 | % | | | 28 | % |
| | | | | | | | | | | | | | | | | | | | |
| (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, | |
| | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| | | | | |
Net asset value, beginning of year | | $ | 12.47 | | | $ | 12.28 | | | $ | 12.27 | | | $ | 12.89 | | | $ | 12.51 | |
| | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.60 | | | | 0.62 | | | | 0.65 | | | | 0.67 | | | | 0.68 | |
Net realized and unrealized gain (loss) | | | (1.26 | ) | | | 0.20 | | | | 0.01 | | | | (0.63 | ) | | | 0.40 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.66 | ) | | | 0.82 | | | | 0.66 | | | | 0.04 | | | | 1.08 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions to Common Shareholders from net investment income(b) | | | (0.61 | ) | | | (0.63 | ) | | | (0.65 | ) | | | (0.66 | ) | | | (0.70 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of year | | $ | 11.20 | | | $ | 12.47 | | | $ | 12.28 | | | $ | 12.27 | | | $ | 12.89 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Market price, end of year | | $ | 10.92 | | | $ | 11.88 | | | $ | 11.20 | | | $ | 11.66 | | | $ | 12.28 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Return Applicable to Common Shareholders(c) | | | | | | | | | | | | | | | | | | | | |
Based on net asset value | | | (5.70 | )% | | | 7.34 | % | | | 5.76 | % | | | 0.53 | % | | | 9.51 | % |
| | | | | | | | | | | | | | | | | | | | |
Based on market price | | | (3.49 | )% | | | 12.12 | % | | | 1.50 | % | | | 0.28 | % | | | 14.39 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Ratios to Average Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 2.54 | % | | | 2.67 | % | | | 2.33 | % | | | 2.00 | % | | | 1.59 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 2.54 | % | | | 2.67 | % | | | 2.33 | % | | | 2.00 | % | | | 1.59 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(d)(e) | | | 1.13 | % | | | 1.13 | % | | | 1.14 | % | | | 1.13 | % | | | 1.11 | % |
| | | | | | | | | | | | | | | | | | | | |
Net investment income to Common Shareholders | | | 4.71 | % | | | 5.11 | % | | | 5.21 | % | | | 5.32 | % | | | 5.45 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | |
Net assets applicable to Common Shareholders, end of year (000) | | $ | 150,344 | | | $ | 167,431 | | | $ | 164,787 | | | $ | 164,745 | | | $ | 173,050 | |
| | | | | | | | | | | | | | | | | | | | |
VRDP Shares outstanding at $100,000 liquidation value, end of year (000) | | $ | 76,000 | | | $ | 76,000 | | | $ | 76,000 | | | $ | 76,000 | | | $ | 76,000 | |
| | | | | | | | | | | | | | | | | | | | |
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year | | $ | 297,821 | | | $ | 320,304 | | | $ | 316,825 | | | $ | 316,770 | | | $ | 327,697 | |
| | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of year (000) | | $ | 36,908 | | | $ | 34,595 | | | $ | 36,025 | | | $ | 32,093 | | | $ | 25,970 | |
| | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 34 | % | | | 31 | % | | | 44 | % | | | 43 | % | | | 29 | % |
| | | | | | | | | | | | | | | | | | | | |
| (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) | 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, | |
| | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
Expense ratios | | | 1.12 | % | | | 1.12 | % | | | 1.47 | % | | | 1.52 | % | | | — | % |
| | | | | | | | | | | | | | | | | | | | |
| (e) | 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. |
See notes to financial statements.
| | |
| 48 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | |
| | | BFK | |
| |
| | | Year Ended April 30, | |
| | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| | | | | |
Net asset value, beginning of year | | $ | 14.17 | | | $ | 13.98 | | | $ | 14.24 | | | $ | 15.20 | | | $ | 14.91 | |
| | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.67 | | | | 0.68 | | | | 0.73 | | | | 0.81 | | | | 0.87 | |
Net realized and unrealized gain (loss) | | | (1.28 | ) | | | 0.21 | | | | (0.22 | ) | | | (0.92 | ) | | | 0.32 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.61 | ) | | | 0.89 | | | | 0.51 | | | | (0.11 | ) | | | 1.19 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions to Common Shareholders from net investment income(b) | | | (0.65 | ) | | | (0.70 | ) | | | (0.77 | ) | | | (0.85 | ) | | | (0.90 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of year | | $ | 12.91 | | | $ | 14.17 | | | $ | 13.98 | | | $ | 14.24 | | | $ | 15.20 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Market price, end of year | | $ | 12.14 | | | $ | 13.79 | | | $ | 12.78 | | | $ | 14.00 | | | $ | 15.44 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Return Applicable to Common Shareholders(c) | | | | | | | | | | | | | | | | | | | | |
Based on net asset value | | | (4.51 | )% | | | 6.98 | % | | | 3.74 | % | | | (0.78 | )% | | | 8.57 | % |
| | | | | | | | | | | | | | | | | | | | |
Based on market price | | | (7.74 | )% | | | 13.89 | % | | | (3.54 | )% | | | (3.96 | )% | | | 14.76 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Ratios to Average Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 2.30 | % | | | 2.55 | % | | | 2.31 | % | | | 1.99 | % | | | 1.61 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 2.30 | % | | | 2.55 | % | | | 2.27 | % | | | 1.98 | % | | | 1.61 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(d) | | | 1.02 | % | | | 1.04 | % | | | 1.03 | % | | | 1.06 | % | | | 1.03 | % |
| | | | | | | | | | | | | | | | | | | | |
Net investment income to Common Shareholders | | | 4.68 | % | | | 4.87 | % | | | 5.06 | % | | | 5.45 | % | | | 5.85 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | |
Net assets applicable to Common Shareholders, end of year (000) | | $ | 578,807 | | | $ | 635,076 | | | $ | 626,604 | | | $ | 638,047 | | | $ | 680,502 | |
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | 313,740 | | | $ | 334,518 | | | $ | 331,390 | | | $ | 335,616 | | | $ | 351,293 | |
| | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of year (000) | | $ | 135,464 | | | $ | 119,624 | | | $ | 128,156 | | | $ | 146,562 | | | $ | 128,554 | |
| | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 17 | % | | | 19 | % | | | 9 | % | | | 13 | % | | | 7 | % |
| | | | | | | | | | | | | | | | | | | | |
| (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. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | |
| | | BSD | |
| |
| | | Year Ended April 30, | |
| | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| | | | | |
Net asset value, beginning of year | | $ | 14.15 | | | $ | 13.96 | | | $ | 14.21 | | | $ | 15.04 | | | $ | 14.76 | |
| | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.66 | | | | 0.68 | | | | 0.72 | | | | 0.78 | | | | 0.82 | |
Net realized and unrealized gain (loss) | | | (1.21 | ) | | | 0.20 | | | | (0.20 | ) | | | (0.82 | ) | | | 0.31 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.55 | ) | | | 0.88 | | | | 0.52 | | | | (0.04 | ) | | | 1.13 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions to Common Shareholders from net investment income(b) | | | (0.66 | ) | | | (0.69 | ) | | | (0.77 | ) | | | (0.79 | ) | | | (0.85 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, end of year | | $ | 12.94 | | | $ | 14.15 | | | $ | 13.96 | | | $ | 14.21 | | | $ | 15.04 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Market price, end of year | | $ | 12.17 | | | $ | 13.21 | | | $ | 12.65 | | | $ | 13.67 | | | $ | 15.02 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Return Applicable to Common Shareholders(c) | | | | | | | | | | | | | | | | | | | | |
Based on net asset value | | | (4.10 | )% | | | 6.99 | % | | | 3.89 | % | | | (0.19 | )% | | | 8.32 | % |
| | | | | | | | | | | | | | | | | | | | |
Based on market price | | | (3.38 | )% | | | 10.23 | % | | | (2.15 | )% | | | (3.85 | )% | | | 14.05 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Ratios to Average Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 2.60 | % | | | 2.81 | % | | | 2.46 | % | | | 2.08 | % | | | 1.72 | % |
| | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 2.60 | % | | | 2.81 | % | | | 2.46 | % | | | 2.08 | % | | | 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) | | | 1.21 | % | | | 1.19 | % | | | 1.20 | % | | | 1.15 | % | | | 1.15 | % |
| | | | | | | | | | | | | | | | | | | | |
Net investment income to Common Shareholders | | | 4.61 | % | | | 4.92 | % | | | 5.05 | % | | | 5.28 | % | | | 5.61 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | |
Net assets applicable to Common Shareholders, end of year (000) | | $ | 94,555 | | | $ | 103,430 | | | $ | 101,995 | | | $ | 103,827 | | | $ | 109,864 | |
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | 320,407 | | | $ | 341,094 | | | $ | 337,750 | | | $ | 342,022 | | | $ | 356,093 | |
| | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of year (000) | | $ | 25,654 | | | $ | 26,839 | | | $ | 27,378 | | | $ | 24,984 | | | $ | 20,839 | |
| | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 33 | % | | | 28 | % | | | 34 | % | | | 45 | % | | | 11 | % |
| | | | | | | | | | | | | | | | | | | | |
| (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. |
See notes to financial statements.
| | |
| 50 | | 2020 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 | | Diversified* |
BlackRock Municipal Income Trust | | BFK | | Delaware | | Diversified |
BlackRock Strategic Municipal Trust | | BSD | | Delaware | | Diversified |
| | * | The Trust’s classification changed fromnon-diversified to diversified during the reporting period. | |
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 trustees, 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. 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 borrowings 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 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 trustees who are not “interested persons” of the Trusts, as defined in the 1940 Act (“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:The Trusts have adopted Financial Accounting Standards Board Accounting Standards Update2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Trusts have changed the amortization period for the premium on certain purchased callable debt securities withnon-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Trusts applied the amendments on a modified retrospective basis beginning with the fiscal period ended April 30, 2020. The adjusted cost basis of securities at April 30, 2019 are as follows:
| | | | |
BKN | | $ | 411,215,379 | |
BTA | | | 260,423,250 | |
BFK | | | 955,374,421 | |
BSD | | | 160,982,606 | |
This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the NAV of the Trusts.
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 51 | |
Notes to Financial Statements (continued)
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.
| 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. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. 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 the Global Valuation Committee’s 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, When-Issued and 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
| | |
| 52 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
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.
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 Schedules 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 | | $ | 806,229 | | | $ | 231,456 | | | $ | 76,648 | | | $ | 1,114,333 | |
BTA | | | 533,127 | | | | 159,873 | | | | 48,562 | | | | 741,562 | |
BFK | | | 1,706,735 | | | | 479,689 | | | | 166,671 | | | | 2,353,095 | |
BSD | | | 384,601 | | | | 108,637 | | | | 39,482 | | | | 532,720 | |
For the year ended April 30, 2020, 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 | | $ | 92,743,919 | | | $ | 56,112,087 | | | | 0.25% — 0.44% | | | $ | 55,461,252 | | | | 2.01 | % |
BTA | | | 63,012,034 | | | | 36,907,873 | | | | 0.19% — 0.40% | | | | 36,459,468 | | | | 2.03 | |
BFK | | | 216,420,496 | | | | 135,463,834 | | | | 0.16% — 0.73% | | | | 117,780,251 | | | | 1.99 | |
BSD | | | 45,475,500 | | | | 25,654,427 | | | | 0.19% — 0.40% | | | | 26,156,330 | | | | 2.04 | |
| | (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 | |
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 53 | |
Notes to Financial Statements (continued)
| | 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 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, the 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, 2020, 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, 2020. | |
For the year ended April 30, 2020, the following table is a summary of each Trust’s Loan for TOB Trust Certificates:
| | | | | | | | | | | | | | | | |
| | | 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 | | $ | — | | | | — | % | | | 35,211 | | | | 0.69 | % |
BTA | | | — | | | | — | | | | 34,774 | | | | 0.71 | |
BFK | | | — | | | | — | | | | 183,314 | | | | 0.70 | |
BSD | | | — | | | | — | | | | 4,440 | | | | 0.71 | |
| 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.
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” are determined as total assets of the Trust (including any assets attributable to money borrowed for investment purposes) less the sum of its accrued liabilities (other than money borrowed for investment purposes).
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 NAV.
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.
| | |
| 54 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
Waivers: With respect to each Trust, the Manager contractually 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”) through June 30, 2021. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Trust. Prior to December 1, 2019, this waiver was voluntary. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended April 30, 2020, the amounts waived were as follows:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Amounts waived | | $ | 1,062 | | | $ | 715 | | | $ | 7,436 | | | $ | 486 | |
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, 2021. 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, 2020, 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 directors 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.
For the year ended April 30, 2020, purchases and sales of investments, excluding short-term securities, were as follows:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Purchases | | $ | 71,422,796 | | | $ | 96,326,329 | | | $ | 182,919,882 | | | $ | 57,573,886 | |
Sales | | | 75,405,612 | | | | 97,646,793 | | | | 175,508,289 | | | | 62,825,548 | |
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, 2020. 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, 2020, 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 NAVs per share. As of period end, the following permanent differences, attributable to non-deductible expenses, were reclassified to the following accounts:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Paid-in capital | | $ | — | | | $ | (15,246 | ) | | $ | — | | | $ | — | |
Accumulated earnings (loss) | | | — | | | | 15,246 | | | | — | | | | — | |
The tax character of distributions paid was as follows:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Tax-exempt income(a) | | | | | | | | | | | | | | | | |
4/30/2020 | | $ | 14,558,611 | | | $ | 9,760,994 | | | $ | 35,115,253 | | | $ | 5,783,822 | |
4/30/2019 | | | 14,921,159 | | | | 10,243,262 | | | | 38,294,903 | | | | 6,079,943 | |
Ordinary income(b) | | | | | | | | | | | | | | | | |
4/30/2020 | | | 5,740 | | | | 5,750 | | | | 9,315 | | | | 2,581 | |
4/30/2019 | | | 5,659 | | | | 14,385 | | | | 7,143 | | | | 8,866 | |
Long-term capital gains | | | | | | | | | | | | | | | | |
4/30/2020 | | | — | | | | — | | | | — | | | | — | |
4/30/2019 | | | 64,261 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | |
4/30/2020 | | $ | 14,564,351 | | | $ | 9,766,744 | | | $ | 35,124,568 | | | $ | 5,786,403 | |
| | | | | | | | | | | | | | | | |
4/30/2019 | | $ | 14,991,079 | | | $ | 10,257,647 | | | $ | 38,302,046 | | | $ | 6,088,809 | |
| | | | | | | | | | | | | | | | |
| | (a) | The Trusts designate these amounts paid during the fiscal year ended April 30, 2020, 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 U.S. withholding tax for nonresident aliens and foreign corporations. | |
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 55 | |
Notes to Financial Statements (continued)
As of period end, the tax components of accumulated earnings (losses) were as follows:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Undistributed tax-exempt income | | $ | 1,521,625 | | | $ | 211,515 | | | $ | 2,468,018 | | | $ | 102,149 | |
Undistributed ordinary income | | | 360 | | | | 59,619 | | | | 11,358 | | | | 4,516 | |
Non-expiring capital loss carryforwards(a) | | | (5,567,479 | ) | | | (7,394,560 | ) | | | (23,510,500 | ) | | | (3,167,920 | ) |
Net unrealized gains(b) | | | 21,202,119 | | | | 1,188,605 | | | | 8,950,229 | | | | 3,371,922 | |
| | | | | | | | | | | | | | | | |
| | $ | 17,156,625 | | | $ | (5,934,821 | ) | | $ | (12,080,895 | ) | | $ | 310,667 | |
| | | | | | | | | | | | | | | | |
| | (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 treatment of residual interests in tender option bond trusts and the deferral of compensation to Trustees. | |
As of April 30, 2020, gross unrealized appreciation and depreciation for investments based on cost for U.S federal income tax purposes were as follows:
| | | | | | | | | | | | | | | | |
| | | BKN | | | BTA | | | BFK | | | BSD | |
Tax cost | | $ | 356,349,673 | | | $ | 221,728,971 | | | $ | 823,419,667 | | | $ | 131,284,107 | |
| | | | | | | | | | | | | | | | |
Gross unrealized appreciation | | $ | 29,300,367 | | | $ | 8,841,346 | | | $ | 36,992,413 | | | $ | 6,683,289 | |
Gross unrealized depreciation | | | (8,036,847 | ) | | | (7,633,479 | ) | | | (27,833,658 | ) | | | (3,297,189 | ) |
| | | | | | | | | | | | | | | | |
Net unrealized appreciation | | $ | 21,263,520 | | | $ | 1,207,867 | | | $ | 9,158,755 | | | $ | 3,386,100 | |
| | | | | | | | | | | | | | | | |
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. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Trusts and their investments.
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.
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.
Each Trust may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. A Trust may not be able to readily dispose of such investments at prices that approximate those at which a Trust could sell such
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| 56 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
investments if they were more widely traded and, as a result of such illiquidity, a Trust may have to sell other investments or engage in borrowing transactions if necessary to raise funds to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting a Trust’s net asset value and ability to make dividend distributions. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in below investment grade public debt securities.
An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The impact of the pandemic may be short term or may last for an extended period of time.
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: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. The Trusts may be subject to a greater risk of rising interest rates due to the current period of historically low rates.
| 10. | CAPITAL SHARE TRANSACTIONS |
BTA, BFK, and BSD are authorized to issue an unlimited number 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 periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:
| | | | | | | | |
| Year Ended April 30, | | BTA | | | BSD | |
2020 | | | 3,780 | | | | 148 | |
2019 | | | — | | | | — | |
For the year ended April 30, 2020 and April 30, 2019, shares issued and outstanding remained constant for BKN and BFK.
The Trusts participate in an open market share repurchase program (the “Repurchase Program”). From December 1, 2018 through November 30, 2019, each Trust may repurchase up to 5% of its outstanding common shares under the Repurchase Program, based on common shares outstanding as of the close of business on November 30, 2018, subject to certain conditions. From December 1, 2019 through November 30, 2020, each Trust may repurchase up to 5% of its outstanding common shares under the Repurchase Program, based on common shares outstanding as of the close of business on November 30, 2019, subject to certain conditions. There is no assurance that the Trusts will purchase shares in any particular amounts. For the year ended April 30, 2020, the Trusts 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 Trust’s 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
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| NOTESTO FINANCIAL STATEMENTS | | | 57 | |
Notes to Financial Statements (continued)
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 (for purposes of this section, a “VRDP Trust”), 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: A VRDP Trust is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, a VRDP Trust is required to begin to segregate liquid assets with the Trust’s custodian to fund the redemption. In addition, a VRDP Trust 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 a VRDP Trust. 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 the VRDP Trust 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. As of period end, the fee agreement is set to expire, unless renewed or terminated in advance, as follows:
| | | | |
| | | BTA | |
Expiration Date . . . . . . . . . . . . . . . . . . . . . . | | | 04/15/21 | |
The VRDP Shares are also subject to a purchase agreement in connection with the liquidity feature. In the event a purchase agreement is not renewed or is terminated in advance, and the VRDP Shares do not become subject to a purchase 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 purchase agreement. In the event of such mandatory purchase, a VRDP Trust is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, the VRDP Trust is required to begin to segregate liquid assets with its custodian to fund the redemption. There is no assurance that a VRDP Trust will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.
Remarketing:A VRDP Trust 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 Statements of Operations. During any special rate period (as described below), a VRDP Trust may incur nominal or no remarketing fees.
Ratings:As of period end, the VRDP Shares were assigned the following ratings:
| | | | | | | | |
| | | Moody’s Long-term Rating | | | Fitch Long-term Rating | |
BTA | | | N/A | | | | AAA | |
Any short-term ratings on VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s and Fitch. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories.
Special Rate Period: A VRDP Trust 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, 2021.
Prior to the expiration date, the VRDP Trust 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.
During the special rate period: (i) the liquidity and fee agreements remain in effect, (ii) VRDP Shares remain subject to mandatory redemption by the VRDP Trust on the maturity date, (iii) VRDP Shares will not be remarketed or subject to optional or mandatory tender events, (iv) the VRDP Trust is required to comply with the same asset
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| 58 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (continued)
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) the VRDP Trust 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) the VRDP Trust will pay nominal or no fees to the liquidity provider and remarketing agent.
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, 2020, the annualized dividend rate for the VRDP Shares was 2.15%.
For the year ended April 30, 2020, 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 | | | | 07/02/21 | | | | Aa1 | | | | AAA | |
BFK | | | 12/16/11 | | | | 2,708 | | | | 270,800,000 | | | | 07/02/21 | | | | Aa1 | | | | AAA | |
BSD | | | 12/16/11 | | | | 429 | | | | 42,900,000 | | | | 07/02/21 | | | | 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.
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 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, 2020, the average annualized dividend rates for the VMTP Shares were as follows:
| | | | | | | | | | | | |
| | | BKN | | | BFK | | | BSD | |
Rate | | | 2.18 | % | | | 2.18 | % | | | 2.18 | % |
For the year ended April 30, 2020, 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 a VRDP Trust 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.
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
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 59 | |
Notes to Financial Statements (continued)
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 | | $ | 2,740,480 | | | $ | — | |
BTA | | | 1,631,280 | | | | 15,246 | |
BFK | | | 5,894,534 | | | | — | |
BSD | | | 933,809 | | | | — | |
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:
The Trusts declared and paid distributions to Common Shareholders and Preferred Shareholders as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Common Dividend Per
Share | | | | | | Preferred Shares (c) | |
| | | Paid (a) | | | Declared (b) | | | | | | Shares | | | Series | | | Declared | |
BKN | | $ | 0.059000 | | | $ | 0.063000 | | | | | | | | VMTP | | | | W-7 | | | $ | 114,842 | |
BTA | | | 0.050500 | | | | 0.050500 | | | | | | | | VRDP | | | | W-7 | | | | 65,534 | |
BFK | | | 0.053500 | | | | 0.056500 | | | | | | | | VMTP | | | | W-7 | | | | 247,015 | |
BSD | | | 0.055000 | | | | 0.055000 | | | | | | | | VMTP | | | | W-7 | | | | 39,132 | |
| | (a) | Net investment income dividend paid on June 1, 2020 to Common Shareholders of record on May 15, 2020. | |
| | (b) | Net investment income dividend declared on June 1, 2020 payable to Common Shareholders of record on June 15, 2020. | |
| | (c) | Dividends declared for period May 1, 2020 to May 31, 2020. | |
On June 16, 2020, the Board of Trustees of BSD and the Board of Trustees of BlackRock Municipal Income Trust II (BLE) each approved the reorganization of BSD with and into BLE. The reorganization is expected to occur in or before the first quarter of 2021 and is subject to the approvals by each Fund’s shareholders and the satisfaction of customary closing conditions.
| | |
| 60 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors/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 Trust (the “Funds”), including the schedules of investments, as of April 30, 2020, 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, 2020, 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 audit 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, 2020, 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 22, 2020
We have served as the auditor of one or more BlackRock investment companies since 1992.
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| REPORTOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | | 61 | |
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 distribution, 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 sold brokerage commission fee. All correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at 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.
| | |
| 62 | | 2020 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. | | 87 RICs consisting of 111 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. | | 87 RICs consisting of 111 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. | | 87 RICs consisting of 111 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. | | 87 RICs consisting of 111 Portfolios | | Unum (insurance); The Hanover Insurance Group (insurance); Envestnet (investment platform) from 2013 until 2016
|
Frank J. Fabozzi (d) 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; Visiting Professor, Rutgers University for the Spring 2019 semester; Visiting Professor, New York University for the 2019 academic year. | | 88 RICs consisting of 112 Portfolios | | None |
R. Glenn Hubbard 1958 | | Trustee
(Since 2007) | | Dean, Columbia Business School from 2004 to 2019; Faculty member, Columbia Business School since 1988. | | 87 RICs consisting of 111 Portfolios | | ADP (data and information services); Metropolitan Life Insurance Company (insurance); KKR Financial Corporation (finance) from 2004 until 2014 |
| | | | |
| TRUSTEEAND OFFICER INFORMATION | | | 63 | |
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 |
W. Carl Kester (d) 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 (d) 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)(e) |
| | | | | |
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. | | 123 RICs consisting of 261 Portfolios | | None |
John M. Perlowski (d) 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. | | 124 RICs consisting of 262 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 Trust’sby-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 Trust’sby-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. (d) Dr. Fabozzi, Dr. Kester, Ms. Lynch and Mr. Perlowski are also trustees of the BlackRock Credit Strategies Fund. (e) Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Trust 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. |
| | |
| 64 | | 2020 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 from 2019 to 2020; 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 Trust serve at the pleasure of the Board. |
Effective February 19, 2020, Henry Gabbay resigned as a Trustee of the Trusts.
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 | | | 65 | |
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.
Except if noted otherwise herein, 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. Except if noted otherwise herein, 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 atblackrock.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 as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Trusts’ Forms N-PORT and N-Q are available on the SEC’s website at 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) atblackrock.com; and (3) on the SEC’s website at 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) atblackrock.com; or by calling (800) 882-0052; and (2) on the SEC’s website at sec.gov.
| | |
| 66 | | 2020 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 ofblackrock.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 | | | 67 | |
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 |
| | |
| 68 | | 2020 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS |
Want to know more?
blackrock.com | 800-882-0052
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.
CEMUNI5-4/20-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
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:
1
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | (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 |
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 | | $1,984,000 | | $2,050,500 |
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 $1,984,000 and $2,050,500 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
2
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.
(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 |
$1,984,000 | | $2,050,500 |
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 Registrant |
| | (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
3
Frank J. Fabozzi
Catherine A. Lynch
Karen P. Robards
(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 previous FormN-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 asExhibit 99.PROXYPOL, a copy of the Fund’s Global Corporate Governance & Engagement Principles are attached asExhibit 99.GLOBAL.CORP.GOV and a copy of the Fund’s Corporate Governance and Proxy Voting Guidelines for U.S. Securities are attached asExhibit 99.US.CORP.GOV. 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 at http://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
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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. |
(a)(2) As of April 30, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (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
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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.
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, 2020:
Portfolio Manager Compensation Overview
The discussion below describes the portfolio managers’ compensation as of April 30, 2020.
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.,
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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.
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 ($285,000 for 2020). 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
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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, 2020:
| | |
| Portfolio Manager | | Dollar Range of Equity Securities
of the Fund Beneficially Owned |
Theodore R. Jaeckel, Jr. | | None |
Michael Perilli | | None |
(b) Not Applicable
| Item 9 – | Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report. |
| 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 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) – Section 302 Certifications are attached
(a)(3) – Not Applicable
(a)(4) – Not Applicable
(b) – Section 906 Certifications are attached
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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 2, 2020
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 2, 2020
| | | | | | |
| | | |
By: | | /s/ Neal J. Andrews | | | | |
| | Neal J. Andrews | | | | |
| | Chief Financial Officer (principal financial officer) of BlackRock Long-Term Municipal Advantage Trust |
Date: July 2, 2020
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