UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

 

Investment Company Act file number 811-09401

 

Name of Fund: The BlackRock Strategic Municipal Trust (BSD)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, The BlackRock Strategic Municipal 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: 04/30/2013

 

Date of reporting period: 07/31/2012

 

Item 1 – Schedule of Investments

 
 
Schedule of Investments July 31, 2012 (Unaudited) BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)

 

    Par  
    (000) Value
 
Municipal Bonds      
Alabama — 1.1%      
Alabama State Docks Department,      
Refunding RB, 6.00%, 10/01/40 $ 655 $ 759,309
County of Jefferson Alabama, RB, Series    
A, 5.25%, 1/01/19   465 465,511
      1,224,820
Alaska — 1.0%      
Northern Tobacco Securitization Corp.,    
Refunding RB, Series A:      
4.63%, 6/01/23   725 722,818
5.00%, 6/01/46   480 376,526
      1,099,344
Arizona — 1.9%      
Salt Verde Financial Corp., RB, Senior,    
5.00%, 12/01/37   1,320 1,370,226
San Luis Facility Development Corp., RB,    
Senior Lien, Regional Detention      
Center Project:      
6.25%, 5/01/15   135 134,226
7.00%, 5/01/20   210 213,801
7.25%, 5/01/27   420 402,192
      2,120,445
California — 7.2%      
Bay Area Toll Authority, Refunding RB,    
San Francisco Bay Area, Series F-1,    
5.63%, 4/01/44   720 833,400
California County Tobacco Securitization    
Agency, RB, CAB Stanislaus, Sub-      
Series C, 11.01%, 6/01/55 (a)   3,095 31,445
California Health Facilities Financing      
Authority, RB:      
Stanford Hospital and Clinics,      
Series A, 5.00%, 8/15/51   370 405,794
Sutter Health, Series B,      
6.00%, 8/15/42   1,010 1,213,010
California State Public Works Board, RB,    
Various Capital Projects, Sub-Series I-    
1, 6.38%, 11/01/34   375 455,531
California Statewide Communities      
Development Authority, RB, Series A,    
5.00%, 4/01/42   690 755,260
City of Los Angeles Department of      
Airports, Refunding RB, Series A,      
5.25%, 5/15/39   250 281,688
Foothill Eastern Transportation Corridor    
Agency California, Refunding RB, CAB,    
6.07%, 1/15/33 (a)   3,835 1,128,602
State of California, GO, Various Purpose:    
6.00%, 3/01/33   800 985,472
6.50%, 4/01/33   650 811,889
State of California, GO, Refunding,      
Various Purpose, 5.00%, 10/01/41 960 1,047,638
      7,949,729

 

    Par  
    (000) Value
 
Municipal Bonds      
Colorado — 1.5%      
Colorado Health Facilities Authority,    
Refunding RB:      
Evangelical Lutheran Good      
Samaritan Society Project,      
5.00%, 12/01/42 $ 5 $ 5,298
Catholic Health, Series A,      
5.50%, 7/01/34   680 777,240
Park Creek Metropolitan District      
Colorado, Refunding RB, Senior,      
Limited Tax, Property Tax, 5.50%,    
12/01/37   440 465,934
Regional Transportation District, COP,    
Refunding, Series A, 5.38%, 6/01/31 320 364,781
      1,613,253
Connecticut — 1.9%      
State of Connecticut, GO, Refunding,    
Series C:      
5.00%, 6/01/23   990 1,249,162
5.00%, 6/01/24   630 787,601
      2,036,763
Delaware — 2.1%      
County of Sussex Delaware, RB, NRG    
Energy, Inc., Indian River Project,    
6.00%, 10/01/40   820 931,135
Delaware State EDA, RB, Exempt      
Facilities, Indian River Power, 5.38%,    
10/01/45   1,280 1,385,574
      2,316,709
District of Columbia — 1.8%      
District of Columbia, Tax Allocation    
Bonds, City Market O Street Project,    
Tax Increment Revenue, 5.13%,      
6/01/41   690 743,310
Metropolitan Washington Airports      
Authority, Refunding RB, First Senior    
Lien, Series A:      
5.00%, 10/01/39   160 175,726
5.25%, 10/01/44   1,000 1,107,360
      2,026,396
Florida — 8.3%      
Citizens Property Insurance Corp., RB,    
Senior Secured, Series A-1:      
5.00%, 6/01/19   500 574,230
5.00%, 6/01/21   535 617,197
Highlands County Florida Health      
Facilities Authority, RB, Adventist,    
Series G, 5.13%, 11/15/32   1,000 1,066,610
Hillsborough County IDA, RB, National    
Gypsum Co., Series A, AMT, 7.13%,    
4/01/30   3,300 3,302,178
BLACKROCK STRATEGIC MUNICIPAL TRUSTJULY 31, 20121
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)

 

    Par  
    (000) Value
 
Municipal Bonds      
Florida (concluded)      
Miami Beach Health Facilities Authority,    
RB, Mount Sinai Medical Center of      
Florida, 6.75%, 11/15/21 $ 1,095 $ 1,196,726
Mid-Bay Bridge Authority, RB, Series A,    
7.25%, 10/01/40   720 908,791
Sumter Landing Community      
Development District Florida, RB, Sub-    
Series B, 5.70%, 10/01/38   1,515 1,386,392
      9,052,124
Georgia — 1.4%      
DeKalb Private Hospital Authority,      
Refunding RB, Children's Healthcare,    
5.25%, 11/15/39   265 293,156
Metropolitan Atlanta Rapid Transit      
Authority, RB, Third Series, 5.00%,      
7/01/39   1,095 1,222,874
      1,516,030
Hawaii — 0.5%      
State of Hawaii, RB, Series A, 5.25%,    
7/01/30   425 497,807
Illinois — 14.6%      
Chicago Board of Education Illinois, GO,    
5.50%, 12/01/39   625 728,637
Chicago Transit Authority, RB, Sales Tax    
Receipts Revenue, 5.25%, 12/01/40 330 376,474
City of Chicago Illinois, GARB, O'Hare      
International Airport, Third Lien,      
Series C, 6.50%, 1/01/41   1,855 2,277,346
City of Chicago Illinois, GO, Series A,      
5.00%, 1/01/34   1,430 1,600,771
City of Chicago Illinois, RB, O'Hare      
International Airport, General Third    
Lien, Series A, 5.63%, 1/01/35   800 938,904
City of Chicago Illinois, Refunding RB,    
Sales Tax Receipt Revenue, Series A,    
5.25%, 1/01/38   260 298,475
City of Chicago Illinois O'Hare      
International Airport, RB, Third Lien,    
Series A, 5.75%, 1/01/39   1,500 1,768,110
Illinois Finance Authority, RB, MJH      
Education Assistance IV LLC, Sub-      
Series B, 5.38%, 6/01/35 (b)(c)   300 29,991
Illinois Finance Authority, Refunding RB:    
5.00%, 11/15/37   305 339,718
5.00%, 11/15/42   555 614,468
Central DuPage Health, Series      
B, 5.50%, 11/01/39   2,500 2,814,175
Friendship Village      
Schaumburg, Series A,      
5.63%, 2/15/37   145 145,608

 

    Par  
    (000) Value
 
Municipal Bonds      
Illinois (concluded)      
Metropolitan Pier & Exposition Authority,    
Refunding RB (AGM):      
CAB, Series B, 5.12%,      
6/15/44 (a) $ 2,980 $ 594,868
McCormick Place Expansion      
Project, Series B, 5.00%,      
6/15/50   990 1,071,180
McCormick Place Expansion      
Project, Series B-2, 5.00%,      
6/15/50   785 849,095
Railsplitter Tobacco Settlement      
Authority, RB:      
5.50%, 6/01/23   175 204,211
6.00%, 6/01/28   940 1,093,887
State of Illinois, RB, Build Illinois, Series    
B, 5.25%, 6/15/34   200 227,220
      15,973,138
Indiana — 2.6%      
Indiana Finance Authority, RB:      
First Lien, Series A, 5.25%,      
10/01/38   500 578,700
Sisters of St. Francis Health,      
5.25%, 11/01/39   270 296,744
Indiana Finance Authority, Refunding    
RB, Ascension Health Senior Credit,    
Series B-5, 5.00%, 11/15/36   500 530,420
Indiana Health Facility Financing      
Authority, Refunding RB, Methodist    
Hospital, Inc., 5.38%, 9/15/22   1,060 1,060,742
Indiana Municipal Power Agency, RB,    
Series B, 6.00%, 1/01/39   350 408,198
      2,874,804
Iowa — 0.6%      
Iowa Student Loan Liquidity Corp.,      
Refunding RB, Senior Series A-1, AMT,    
5.15%, 12/01/22   625 705,194
Kansas — 0.4%      
Kansas Development Finance Authority,    
Refunding RB, Sisters of Leavenworth,    
Series A, 5.00%, 1/01/40   450 490,982
Kentucky — 3.0%      
Kentucky Economic Development      
Finance Authority, RB, Owensboro    
Medical Health System, Series A,    
6.38%, 6/01/40   320 376,541
Kentucky Economic Development      
Finance Authority, Refunding RB,    
Norton Healthcare Inc., Series B      
(NPFGC), 4.39%, 10/01/24 (a)   5,000 2,947,900
      3,324,441

 

BLACKROCK STRATEGIC MUNICIPAL TRUSTJULY 31, 20122
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)

 

    Par  
    (000) Value
 
Municipal Bonds      
Louisiana — 3.1%      
Louisiana Local Government      
Environmental Facilities & Community    
Development Authority, RB, Westlake    
Chemical Corp., Series A-1, 6.50%,    
11/01/35 $ 1,055 $ 1,222,154
Parish of Saint John the Baptist      
Louisiana, RB, Marathon Oil Corp.,      
Series A, 5.13%, 6/01/37   1,000 1,062,030
State of Louisiana Gasoline & Fuels Tax    
Revenue, RB, Second Lien, Series B,    
5.00%, 5/01/45   1,025 1,152,951
      3,437,135
Maine — 1.1%      
Maine State Turnpike Authority, RB,      
Series A, 5.00%, 7/01/42   1,000 1,150,060
Maryland — 1.8%      
Maryland EDC, RB, Transportation      
Facilities Project, Series A, 5.75%,      
6/01/35   135 147,191
Maryland EDC, Refunding RB, CNX      
Marine Terminals, Inc., 5.75%,      
9/01/25   1,000 1,082,470
Maryland Health & Higher Educational    
Facilities Authority, Refunding RB,      
Charlestown Community, 6.25%,      
1/01/41   690 787,814
      2,017,475
Massachusetts — 1.2%      
Massachusetts Development Finance    
Agency, RB, Wellesley College Issue,    
Series J, 5.00%, 7/01/42   570 666,079
Massachusetts Health & Educational    
Facilities Authority, Refunding RB,      
Partners Healthcare, Series J1,      
5.00%, 7/01/39   570 621,374
      1,287,453
Michigan — 4.0%      
City of Detroit Michigan, Water Supply    
System, RB, Senior Lien, Series A,      
5.25%, 7/01/41   1,500 1,573,950
Kalamazoo Hospital Finance Authority,    
Refunding RB, Bronson Methodist      
Hospital, 5.50%, 5/15/36   435 482,880
Lansing Board of Water & Light Utilities,    
RB, Series A, 5.50%, 7/01/41   465 550,951
Michigan State Hospital Finance      
Authority, Refunding RB, Henry Ford    
Health System, Series A, 5.25%,      
11/15/46   500 527,160

 

  Par  
  (000) Value
 
Municipal Bonds    
Michigan (concluded)    
Royal Oak Hospital Finance Authority    
Michigan, Refunding RB, William    
Beaumont Hospital, 8.25%, 9/01/39 $ $1,000 $ 1,289,910
    4,424,851
Minnesota — 2.1%    
Tobacco Securitization Authority    
Minnesota, Refunding RB, Tobacco    
Settlement, Series B:    
5.25%, 3/01/25 1,415 1,641,839
5.25%, 3/01/31 595 669,333
    2,311,172
Missouri — 0.3%    
Missouri State Health & Educational    
Facilities Authority, RB, Senior Living    
Facilities, Lutheran Senior Home,    
5.50%, 2/01/42 330 350,378
Nebraska — 1.4%    
Central Plains Energy Project Nebraska,    
RB, Gas Project No. 3:    
5.25%, 9/01/37 260 275,894
5.00%, 9/01/42 455 468,054
Douglas County Hospital Authority No. 2,    
RB, Health Facilities, Immanuel    
Obligation Group, 5.63%, 1/01/40 720 801,749
    1,545,697
Nevada — 0.8%    
County of Clark Nevada, Refunding RB,    
Alexander Dawson School Nevada    
Project, 5.00%, 5/15/29 880 923,859
New Jersey — 6.0%    
Middlesex County Improvement    
Authority, RB, Subordinate Heldrich,    
Center Hotel, Series B, 6.25%,    
1/01/37 (b)(c) 645 48,368
New Jersey EDA, RB, AMT:    
Continental Airlines Inc.    
Project, 6.40%, 9/15/23 1,810 1,817,421
Continental Airlines Inc.    
Project, 6.63%, 9/15/12 500 502,555
New Jersey EDA, Cigarette Tax,    
Refunding RB, 5.00%, 6/15/24 305 345,568
New Jersey State Turnpike Authority, RB,    
Series E, 5.25%, 1/01/40 1,355 1,524,145
New Jersey Transportation Trust Fund    
Authority, RB, Transportation System:    
Series A, 5.50%, 6/15/41 575 672,071
Series B, 5.25%, 6/15/36 775 892,963
Tobacco Settlement Financing Corp.    
New Jersey, Refunding RB, Series 1A,    
4.50%, 6/01/23 770 732,478
    6,535,569

 

BLACKROCK STRATEGIC MUNICIPAL TRUSTJULY 31, 20123
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)

 

    Par  
    (000) Value
 
Municipal Bonds      
New York — 6.3%      
Albany Industrial Development Agency,    
RB, New Covenant Charter School      
Project, Series A, 7.00%, 5/01/35      
(b)(c) $ 315 $ 70,872
Metropolitan Transportation Authority,    
RB, Series E, 5.00%, 11/15/42   170 191,082
Metropolitan Transportation Authority,    
Refunding RB, Transportation, Series    
D, 5.25%, 11/15/40   385 435,162
New York City Industrial Development    
Agency, RB:      
American Airlines, Inc., JFK      
International Airport, 7.75%,      
8/01/31 (b)(c)   3,000 3,195,000
British Airways PLC Project,      
7.63%, 12/01/32   1,000 1,027,790
New York Liberty Development Corp.,    
Refunding RB, Second Priority, Bank    
of America Tower at One Bryant Park    
Project, 6.38%, 7/15/49   385 439,150
New York State Thruway Authority, RB,    
Series I, 5.00%, 1/01/42   555 625,552
Port Authority of New York & New Jersey,    
RB, JFK International Air Terminal:      
6.00%, 12/01/36   410 465,887
6.00%, 12/01/42   395 447,349
      6,897,844
North Carolina — 0.4%      
North Carolina Medical Care      
Commission, RB, Duke University      
Health System, Series A, 5.00%,      
6/01/42   440 485,976
Ohio — 2.4%      
County of Hamilton Ohio, RB, Christ      
Hospital Project, 5.00%, 6/01/42   575 601,329
County of Montgomery Ohio, Refunding    
RB, Catholic Healthcare, Series A,      
5.00%, 5/01/39   885 952,570
State of Ohio, RB, Ford Motor Co.      
Project, AMT, 5.75%, 4/01/35   1,000 1,033,550
      2,587,449
Oregon — 0.8%      
City of Tigard Washington County      
Oregon, Refunding RB, Water System,    
5.00%, 8/01/37   80 92,835
Oregon State Facilities Authority, RB,    
(AGC), 5.00%, 7/01/44   715 767,581
      860,416

 

    Par  
    (000) Value
 
Municipal Bonds      
Pennsylvania — 1.2%      
Allegheny County Hospital Development    
Authority, Refunding RB, Health      
System West Penn, Series A, 5.38%,    
11/15/40 $ 735 $ 600,201
Pennsylvania Economic Development    
Financing Authority, RB, Aqua      
Pennsylvania, Inc. Project, 5.00%,      
11/15/40   600 669,276
      1,269,477
Puerto Rico — 3.2%      
Puerto Rico Sales Tax Financing Corp.,    
RB, Sub-Series Series A, 6.50%,      
8/01/44   1,770 2,112,902
Puerto Rico Sales Tax Financing Corp.,    
Refunding RB, CAB, Series C, 5.43%,    
8/01/39 (a)   5,910 1,391,096
      3,503,998
South Carolina — 3.5%      
South Carolina Jobs, EDA, RB, Palmetto    
Health, Series C:      
7.00%, 8/01/13   2,225 2,374,676
7.00%, 8/01/13   275 293,499
South Carolina State Ports Authority, RB,    
5.25%, 7/01/40   1,040 1,170,218
      3,838,393
Tennessee — 0.1%      
Rutherford County Health & Educational    
Facilities Board, RB, Series C, 5.00%,    
11/15/47   65 73,221
Texas — 14.6%      
Brazos River Authority, RB, TXU Electric,    
Series A, AMT, 8.25%, 10/01/30   730 82,264
Central Texas Regional Mobility      
Authority, Refunding RB, Senior Lien,    
6.25%, 1/01/46   680 788,399
City of Austin Texas, Refunding RB,      
Water & Wastewater System      
Revenue, 5.00%, 11/15/37   200 233,440
City of Dallas Texas, Refunding RB,      
5.00%, 10/01/35   475 547,799
City of Houston Texas, Refunding RB:    
Combined, First Lien, Series A,      
(AGC), 6.00%, 11/15/35   2,730 3,328,825
Senior Lien, Series A, 5.50%,      
7/01/39   485 544,679
Harris County-Houston Sports Authority,    
Refunding RB, CAB, Senior Lien,      
Series A (NPFGC), 5.95%, 11/15/38 (a)   4,750 1,017,497
La Joya Independent School District,      
Refunding GO (PSF-GTD):      
4.00%, 2/15/32   1,400 1,524,362

 

BLACKROCK STRATEGIC MUNICIPAL TRUSTJULY 31, 20124
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)

 

    Par  
    (000) Value
 
Municipal Bonds      
Texas (concluded)      
La Joya Independent School District,    
Refunding GO (PSF-GTD) (concluded):    
4.00%, 2/15/33 $ 1,000 $ 1,080,710
La Vernia Higher Education Finance    
Corp., RB, KIPP, Inc., 6.38%, 8/15/44 500 583,560
North Texas Tollway Authority, RB, CAB,    
Special Projects System, Series B,    
5.39%, 9/01/37 (a)   640 168,781
North Texas Tollway Authority,      
Refunding RB, Toll, Second Tier,      
Series F, 6.13%, 1/01/31   1,025 1,133,517
Tarrant County Cultural Education      
Facilities Finance Corp., RB, Scott &    
White Healthcare, 6.00%, 8/15/45 1,270 1,500,530
Texas Private Activity Bond Surface    
Transportation Corp., RB, Senior Lien,    
NTE Mobility Partners LLC North      
Tarrant Express Managed Lanes      
Project, 6.88%, 12/31/39   500 600,330
Texas Private Activity Bond Surface    
Transportation Corp., RB, Senior Lien,    
LBJ Infrastructure Group LLC LBJ    
Freeway Managed Lanes Project,    
7.00%, 6/30/40   1,000 1,220,800
Texas State Public Finance Authority,    
Refunding ERB, KIPP, Inc., Series A    
(ACA), 5.00%, 2/15/36   500 512,340
University of Texas System, Refunding    
RB, Series B, 5.00%, 8/15/43   970 1,139,837
      16,007,670
Virginia — 6.1%      
City of Norfolk Virginia, Refunding RB,    
Series B (AMBAC), 5.50%, 2/01/31 355 355,387
Fairfax County EDA, Refunding RB,    
Goodwin House Inc., 5.13%,      
10/01/42   1,000 1,024,300
University of Virginia, Refunding RB,    
General, 5.00%, 6/01/40   2,500 2,875,850
Virginia Small Business Financing      
Authority, RB, Senior Lien, Elizabeth    
River Crossings Project, AMT:      
5.25%, 1/01/32   250 270,470
6.00%, 1/01/37   1,500 1,713,165
5.50%, 1/01/42   365 402,215
      6,641,387
Washington — 1.1%      
Washington Health Care Facilities      
Authority, RB, Swedish Health      
Services, Series A, 6.75%, 11/15/41 630 878,699

 

    Par  
    (000) Value
 
Municipal Bonds      
Washington (concluded)      
Washington Health Care Facilities      
Authority, Refunding RB, Providence    
Health & Services, Series A, 5.00%,    
10/01/42 $ 320 $ 356,979
      1,235,678
Wisconsin — 2.1%      
Wisconsin Health & Educational      
Facilities Authority, RB, Ascension      
Health Credit Group, Series A, 5.00%,    
11/15/31   2,165 2,327,115
Wyoming — 1.6%      
County of Sweetwater Wyoming,      
Refunding RB, Idaho Power Co.      
Project, 5.25%, 7/15/26   975 1,113,216
Wyoming Municipal Power Agency, RB,    
Series A:      
5.00%, 1/01/42   95 102,839
5.38%, 1/01/42   500 547,945
      1,764,000
Total Municipal Bonds – 115.1%     126,298,252
 
 
Municipal Bonds Transferred to      
Tender Option Bond (TOB) Trusts (d)    
Alabama — 0.7%      
Alabama Special Care Facilities      
Financing Authority-Birmingham,      
Refunding RB, Ascension Health      
Senior Credit, Series C-2, 5.00%,      
11/15/36   760 804,996
Arizona — 0.8%      
Salt River Project Agricultural      
Improvement & Power District, RB,    
Series A, 5.00%, 1/01/38   770 855,733
California — 8.5%      
California Educational Facilities      
Authority, RB, University of Southern    
California, Series A, 5.25%, 10/01/39 855 1,000,820
City of Los Angeles California      
Department of Airports, Refunding RB,    
Senior, Los Angeles International      
Airport, Series A, 5.00%, 5/15/40   1,880 2,109,977
Los Angeles Community College District    
California, GO, Election of 2001,      
Series A (AGM), 5.00%, 8/01/32   740 834,232
San Diego Community College District    
California, GO, Election of 2002,      
5.25%, 8/01/33   553 649,010

 

BLACKROCK STRATEGIC MUNICIPAL TRUSTJULY 31, 20125
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)

 

    Par  
    (000) Value
Municipal Bonds Transferred to      
Tender Option Bond (TOB) Trusts (d)    
California (concluded)      
San Francisco City & County Public      
Utilities Commission, RB, Series B,    
5.00%, 11/01/39 $ 2,970 $ 3,339,913
University of California, RB, Limited      
Project, Series B, 4.75%, 5/15/38 1,290 1,348,494
      9,282,446
Colorado — 1.9%      
Colorado Health Facilities Authority, RB,    
Catholic Health (AGM):      
C-3, 5.10%, 10/01/41   1,210 1,292,353
C-7, 5.00%, 9/01/36   780 834,132
      2,126,485
Connecticut — 3.2%      
Connecticut State Health & Educational    
Facility Authority, RB, Yale University:    
Series T-1, 4.70%, 7/01/29   1,580 1,803,444
Series X-3, 4.85%, 7/01/37   1,540 1,762,068
      3,565,512
Illinois — 1.0%      
City of Chicago Illinois, Refunding RB,    
5.00%, 11/01/42   920 1,046,853
Maryland — 1.3%      
Maryland Health & Higher Educational    
Facilities Authority, Refunding RB,      
5.00%, 11/15/51   1,320 1,466,717
Massachusetts — 3.5%      
Massachusetts School Building      
Authority, RB, Senior, Series B, 5.00%,    
10/15/41   1,430 1,652,279
Massachusetts Water Resources      
Authority, Refunding RB, General,      
Series A, 5.00%, 8/01/41   1,980 2,227,560
      3,879,839
Michigan — 0.9%      
Detroit Water and Sewerage      
Department, Refunding RB:      
5.00%, 7/01/32   500 525,934
5.25%, 7/01/39   425 447,977
      973,911
New Hampshire — 0.7%      
New Hampshire Health & Education      
Facilities Authority, RB, Dartmouth      
College, 5.25%, 6/01/39   645 769,362
New York — 11.8%      
Hudson New York Yards Infrastructure    
Corp., Senior RB, Series A, 5.75%,      
2/15/47   500 585,985

 

    Par  
    (000) Value
Municipal Bonds Transferred to      
Tender Option Bond (TOB) Trusts (d)    
New York (concluded)      
New York City Municipal Water Finance    
Authority, Refunding RB, Series FF-2,    
5.50%, 6/15/40 $ 510 $ 600,613
New York City Transitional Finance      
Authority, RB, Future Tax Secured      
Revenue, Sub-Series E-1, 5.00%,      
2/01/42   780 900,275
New York Liberty Development Corp.,    
RB, 1 World Trade Center Port      
Authority Construction, 5.25%,      
12/15/43   3,375 3,892,894
New York Liberty Development Corp.,    
Refunding RB, 4 World Trade Center    
Project, 5.75%, 11/15/51   2,030 2,401,794
New York State Dormitory Authority,      
ERB, Series F, 5.00%, 3/15/35   4,184 4,552,751
      12,934,312
Tennessee — 1.3%      
Shelby County Health Educational &      
Housing Facilities Board, Refunding    
RB, St. Jude's Children's Research      
Hospital, 5.00%, 7/01/31   1,280 1,405,683
Texas — 3.3%      
County of Harris Texas, RB, Senior Lien,    
Toll Road, Series A, 5.00%, 8/15/38 2,140 2,409,747
Harris County Texas Metropolitan      
Transit Authority, Refunding RB,      
Series A, 5.00%, 11/01/41   1,080 1,236,395
      3,646,142
Utah — 1.1%      
City of Riverton Utah Hospital, RB, IHC    
Health Services Inc., 5.00%, 8/15/41 1,155 1,261,934
Virginia — 1.9%      
University of Virginia, Refunding RB,      
General, 5.00%, 6/01/40   1,785 2,052,901
Washington — 3.5%      
Central Puget Sound Regional Transit    
Authority, RB, Series A (AGM), 5.00%,    
11/01/32   900 1,026,008
State of Washington, GO, Various      
Purpose, Series E, 5.00%, 2/01/34 2,400 2,766,768
      3,792,776
Total Municipal Bonds Transferred to    
Tender Option Bond (TOB) Trusts – 45.4% 49,865,602
Total Long-Term Investments      
(Cost – $161,562,062) – 160.5%     176,163,854
 

 

BLACKROCK STRATEGIC MUNICIPAL TRUSTJULY 31, 20126
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)

 

  Shares Value
Short-Term Securities    
Money Market Funds — 1.4%    
FFI Institutional Tax-Exempt Fund,    
0.01% (e)(f) 1,517,597 $ 1,517,597
  Par  
  (000)  
Pennsylvania — 0.2%    
Beaver County IDA, Refunding RB,    
0.15%, 8/01/12 (g) $ 200 200,000
Total Short-Term Securities    
(Cost – $1,717,597) – 1.6%   1,717,597
Total Investments (Cost - $163,279,659*) – 162.1%   177,881,451
Other Assets Less Liabilities – 1.3%   1,421,859
Liability for TOB Trust Certificates, Including Interest  
Expense and Fees Payable – (24.3)% (26,684,109)
VMTP Shares, at Liquidation Value – (39.1)% (42,900,000)
Net Assets Applicable to Common Shares – 100.0% $ 109,719,201

 

 

*As of July 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:
Tax cost $ 136,572,359
Gross unrealized appreciation $ 16,642,976
Gross unrealized depreciation   (2,003,013)
Net unrealized appreciation $ 14,639,963

 

(a)Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b)Non-income producing security.
(c)Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(d)Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.
(e)Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
  Shares   Shares  
  Held at Net Held at  
Affiliate April 30, 2012 Activity July 31, 2012 Income
FFI Institutional      
Tax-Exempt      
Fund 1,161,303 356,294 1,517,597 $ 107

 

(f)Represents the current yield as of report date.
(g)Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

ACA American Capital Access Corp.
AGC Assured Guaranty Corp.
AGM Assured Guaranty Municipal Corp.
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax (subject to)
CAB Capital Appreciation Bonds
COP Certificates of Participation
EDA Economic Development Authority
EDC Economic Development Corp.
ERB Education Revenue Bonds
GARB General Airport Revenue Bonds
GO General Obligation Bonds
IDA Industrial Development Authority
NPFGC National Public Finance Guarantee Corp.
PSF-GTD Permanent School Fund Guaranteed
RB Revenue Bonds

 

•Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:
•Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
•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 Trust 's own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust's policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust's policy regarding valuation of investments and other significant accounting policies, please refer to the Trust's most recent financial statements as contained in its annual report.

BLACKROCK STRATEGIC MUNICIPAL TRUSTJULY 31, 20127
 
Schedule of Investments (concluded) BlackRock Strategic Municipal Trust (BSD)

 

The following table summarizes the Trust's investments categorized in the disclosure hierarchy as of July 31, 2012:

  Level 1 Level 2 Level 3 Total
Assets:        
Investments:        
Long-Term        
Investments1 — $  176,163,854 — $  176,163,854
Short-Term        
Securities $ 1,517,597 200,000 — 1,717,597
Total $ 1,517,597 $  176,363,854 — $  177,881,451

 

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

Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of July 31, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

  Level 1 Level 2 Level 3 Total
Liabilities:        
TOB Trust        
Certificates  — $  (26,669,129) — $  (26,669,129)
VMTP        
Shares  — (42,900,000)  — (42,900,000)
Total  — $  (69,569,129)  — $  (69,569,129)

 

There were no transfers between levels during the period ended July 31, 2012.

BLACKROCK STRATEGIC MUNICIPAL TRUSTJULY 31, 20128
 

Item 2 –  Controls and Procedures

2(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 Rule 30a-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 Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

2(b) –    There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

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.

 

The BlackRock Strategic Municipal Trust

 

  By: /s/ John M. Perlowski
    John M. Perlowski
  Chief Executive Officer (principal executive officer) of
    The BlackRock Strategic Municipal Trust

 

Date: September 25, 2012

 

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
    The BlackRock Strategic Municipal Trust

 

Date: September 25, 2012

 

  By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    The BlackRock Strategic Municipal Trust

 

Date: September 25, 2012