UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

 

Investment Company Act file number 811-07354

 

Name of Fund: BlackRock Investment Quality Municipal Trust, Inc. (BKN)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Investment Quality Municipal Trust, Inc., 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: 04/30/2013

 

Item 1 – Report to Stockholders

 
  

APRIL 30, 2013

ANNUAL REPORT  

BlackRock Investment Quality Municipal Trust Inc. (BKN)

BlackRock Long-Term Municipal Advantage Trust (BTA)

BlackRock Municipal 2020 Term Trust (BKK)

BlackRock Municipal Income Trust (BFK)

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

BlackRock Strategic Municipal Trust (BSD)

Not FDIC Insured • May Lose Value • No Bank Guarantee
     
 
  

Table of Contents

Page
Dear Shareholder
           3    
Annual Report:
                
Municipal Market Overview
           4    
The Benefits and Risks of Leveraging
           5    
Derivative Financial Instruments
           5    
Trust Summaries
           6    
Financial Statements
                    
Schedules of Investments
           18    
Statements of Assets and Liabilities
           50    
Statements of Operations
           51    
Statements of Changes in Net Assets
           52    
Statements of Cash Flows
           54    
Financial Highlights
           55    
Notes to Financial Statements
           61    
Report of Independent Registered Public Accounting Firm
           72    
Automatic Dividend Reinvestment Plan
           73    
Officers and Trustees
           74    
Additional Information
           77    
2 ANNUAL REPORT APRIL 30, 2013
 
  
Dear Shareholder 

About this time one year ago, financial market activity was dominated by concerns about Europe’s debt crisis. Investors were also discouraged by gloomy economic reports from various parts of the world, particularly in China. As the outlook for the global economy worsened, however, investors grew increasingly optimistic that the world’s largest central banks would intervene to stimulate growth. This theme, along with the European Central Bank’s (“ECB’s”) firm commitment to preserve the euro currency bloc, drove most asset classes higher through the summer of 2012. In early September, the ECB announced its sovereign bond-buying program designed to support the region’s debt-laden countries. Days later, the US Federal Reserve announced its own much-anticipated stimulus package.

Although financial markets world-wide were buoyed by these aggressive policy actions, risk assets weakened in the fall of 2012. Global trade slowed as many European countries fell into recession and growth continued to decelerate in China. In the United States, stocks slid on lackluster corporate earnings and volatility rose in advance of the US Presidential election. In the post-election environment, investors became more concerned about the “fiscal cliff,” the automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013. High levels of global market volatility persisted through year-end due to fears that bipartisan gridlock would preclude a timely resolution, putting the US economy at high risk for recession. Ultimately, the worst of the fiscal cliff was averted with a last-minute tax deal, although decisions relating to spending cuts and the debt ceiling were postponed, leaving lingering uncertainty.

Investors shook off the nerve-wracking finale to 2012 and the New Year began with a powerful relief rally. Money that had been pulled to the sidelines amid year-end tax-rate uncertainty poured back into the markets in January. Key indicators signaling modest but broad-based improvements in the world’s major economies underpinned the rally. Underlying this aura of comfort was the absence of negative headlines out of Europe. Against this backdrop, global equities surged through January while rising US Treasury yields pressured high quality fixed income assets (as prices move in the opposite direction of yields).

However, bond markets regained strength in February (as yields once again dropped) when global economic momentum slowed and investors toned down their risk appetite. International stock markets weakened amid a resurgence of macro risk out of Europe. A stalemate presidential election in Italy was a reminder that political instability continued to plague the eurozone and a severe banking crisis in Cyprus underscored the fragility of the broader European banking system. In the United States, stocks continued to rise, but at a more moderate pace. Investors grew more cautious given uncertainty as to how long the central bank would continue its stimulus programs. How government spending cuts would impact the already slow economic recovery was another concern. But improving labor market data and rising home prices boosted sentiment in March, pushing major US stock indices to all-time highs. Investors scaled back their enthusiasm in April due to a series of disappointing economic reports. On the whole, US stocks have performed well thus far in 2013 as the US economy demonstrated enough resilience to allay fears of recession, but growth has remained slow enough to dissuade the US Federal Reserve from changing its stance.

Despite continued headwinds for global growth, risk assets have rallied, driven largely by investors seeking meaningful yields in the ongoing low-interest-rate environment. For the 6- and 12-month periods ended April 30, 2013, US and international stocks and high yield bonds posted strong gains. Emerging market equities lagged the rally as the uneven pace of global growth raised doubts that developing economies could thrive in the near term. US Treasury yields were highly volatile over the past 12 months, although they continue to remain low from a historical perspective. US Treasury and investment-grade bonds generated modest returns in this environment, while tax-exempt municipal bonds benefited from favorable supply-and-demand dynamics. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.

Market conditions have improved over the past couple of years, but investors still remain highly uncertain and many of the old ways of investing no longer work. That’s why the new world of investing calls for a new approach. One that seeks out more opportunities in more places across a broader array of investments in a portfolio designed to move freely as the markets move up and down. Visit www.blackrockplan.com to learn more about how to take action.

Sincerely,

  
,

Rob Kapito
President, BlackRock Advisors, LLC
 


“Despite continued headwinds for global growth, risk assets have rallied, driven largely by investors seeking meaningful yields in the ongoing low-interest-rate environment.”

Rob Kapito
President, BlackRock Advisors, LLC


Total Returns as of April 30, 2013

         6-month      12-month
US large cap equities
(S&P 500® Index)
           14.42 %           16.89 %  
US small cap equities
(Russell 2000® Index)
           16.58            17.69   
International equities
(MSCI Europe, Australasia,
Far East Index)
           16.90            19.39   
Emerging market equities
(MSCI Emerging Markets
Index)
           5.29            3.97   
3-month Treasury bill
(BofA Merrill Lynch
3-Month US Treasury
Bill Index)
           0.06            0.12   
US Treasury securities
(BofA Merrill Lynch
10-Year US Treasury Index)
           1.52            5.07   
US investment grade
bonds (Barclays US
Aggregate Bond Index)
           0.90            3.68   
Tax-exempt municipal
bonds (S&P Municipal
Bond Index)
           2.01            5.74   
US high yield bonds
(Barclays US Corporate
High Yield 2% Issuer
Capped Index)
           7.26            13.95   

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


  THIS PAGE NOT PART OF YOUR FUND REPORT 3
 
  
Municipal Market Overview 

For the Reporting Period Ended April 30, 2013

Municipal Bonds Performed Well

Market conditions remained favorable even though supply picked up considerably in the past year. Total new issuance for the 12 months ended April 30, 2013 was $383 billion as compared to $337 billion in the prior 12-month period. However, it is important to note that a significant portion (roughly 60%) of the new supply during the most recent 12-month period was attributable to refinancing activity as issuers took advantage of lower interest rates to reduce their borrowing costs. More recently, municipal issuers have favored the taxable market, where issuance is up 139% year-over-year.

Increased supply was met with strong demand during the period as investors were starved for yield in the low-rate, low-return environment. Investors poured into municipal bond mutual funds, favoring long-duration and high-yield funds as they tend to provide higher levels of income. For the 12 months ended April 30, 2013, municipal bond fund inflows exceeded $39.7 billion (according to the Investment Company Institute).

S&P Municipal Bond Index
Total Returns as of April 30, 2013
 6 months:2.01%
12 months:5.74%

A Closer Look at Yields

 

From April 30, 2012 to April 30, 2013, muni yields declined by 41 basis points (“bps”) from 3.25% to 2.84% on AAA-rated 30-year municipal bonds, while falling 18 bps from 1.87% to 1.69% on 10-year bonds and dropping a modest 8 bps from 0.82% to 0.74% on 5-year issues (as measured by Thomson Municipal Market Data). (Bond prices rise as yields fall.) Overall, the municipal yield curve remained relatively steep, but flattened considerably over the 12-month period as the spread between 2- and 30-year maturities tightened by 39 bps and the spread between 2- and 10-year maturities tightened by 16 bps.

During the same time period, US Treasury rates fell by 23 bps on 30-year and 25 bps on 10-year bonds, while moving down 13 bps on 5-year issues. Accordingly, tax-exempt municipal bonds moderately underperformed Treasuries in the 5- and 10-year space, but significantly outperformed Treasury bonds on the long end of the curve. This outperformance was driven largely by a supply/demand imbalance within the municipal market while evidence of a recovering domestic economy coupled with the removal of certain political and tax policy uncertainties pushed interest rates higher. Additionally, as higher US tax rates began to appear imminent late in 2012, municipal bonds benefited from the increased appeal of tax-exempt investing. The municipal market has become an attractive avenue for investors seeking yield in the low-rate, low-return environment as the asset class is known for its lower volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers Continue to Improve

Austerity and de-leveraging have been the general themes across the country as states seek to balance their budgets, although a small number of states continue to rely on a “kick-the-can” approach to close their budget gaps. Broadly speaking, state governments have demonstrated better fiscal health as their revenues have steadily improved in recent years while they cut more than 700,000 jobs. Many local municipalities, however, continue to face increased health care and pension costs passed down from the state level. BlackRock maintains the view that municipal bond defaults will be minimal and remain in the periphery, and that the overall market is fundamentally sound. We continue to recognize that careful credit research, appropriate structure and security selection remain imperative amid uncertainty in this fragile economic environment.

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

4 ANNUAL REPORT APRIL 30, 2013
 
  
The Benefits and Risks of Leveraging 

The Trusts may utilize leverage to seek to enhance the yield and net asset value (“NAV”) of their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

To obtain leverage, the Trusts, except for BTA, issue Auction Market Preferred Shares (“AMPS”), Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”). Preferred Shares pay dividends at prevailing short-term interest rates, and the Trusts invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Trust on its longer-term portfolio investments. 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 will benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV. However, in order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be lower than if the Trusts had not used leverage.

To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Trust with assets received from Preferred Shares issuance earn income based on long-term interest rates. In this case, the dividends paid to holders of Preferred Shares (“Preferred Shareholders”) are significantly lower than the income earned on the Trust’s long-term investments, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Trust pays higher short-term interest rates whereas the Trust’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Trusts’ Preferred Shares and/or debt securities does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAVs positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares discussed above.

The Trusts may also leverage their assets through the use of tender option bond trusts (“TOBs”), as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Trusts with economic benefits in periods of declining short-term interest rates, but expose the Trusts to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trusts, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Trust’s NAV per share.

The use of leverage may enhance opportunities for increased income to the Trusts and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Trusts’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Trust’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. 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 a Trust to incur losses. The use of leverage may limit each Trust’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by rating agencies that rate the Preferred Shares issued by the Trusts. Each Trust will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Trusts are permitted to issue senior securities in the form of equity securities (e.g., Preferred Shares) up to 50% of their total managed assets (each Trust’s total assets less the sum of its accrued liabilities). In addition, each Trust voluntarily limits its economic leverage to 50% of its total managed assets, while each Trust with VRDP Shares or VMTP Shares outstanding limits its economic leverage to 45% of its total managed assets. As of April 30, 2013, the Trusts had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

  Percent of
Economic
Leverage
BKN
     35 %  
BTA  
     37 %  
BKK
     33 %  
BFK
     39 %  
BPS
     41 %  
BSD
     39 %  

Derivative Financial Instruments

The Trusts may invest in various derivative financial instruments, including financial futures contracts and options, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market, interest rate and/or other risks. Derivative financial instruments 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 derivative financial instrument. The Trusts’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Trust to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Trust can realize on an investment, may result in lower dividends paid to shareholders or may cause a Trust to hold an investment that it might otherwise sell. The Trusts’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 5
 
  
Trust Summary as of April 30, 2013 BlackRock Investment Quality Municipal Trust Inc.

Trust Overview

BlackRock Investment Quality Municipal Trust Inc.’s (BKN) (the “Trust”) investment objective is to provide high current income exempt from regular 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 exempt from federal income taxes (except that the interest may be subject to the 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 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.


Performance

  For the 12-month period ended April 30, 2013, the Trust returned 8.69% based on market price and 12.89% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 8.05% based on market price and 10.61% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  The Trust benefited from its overall long duration bias (greater sensitivity to interest rates) and positioning in longer-dated maturities, with its heaviest concentrations in the 20- and 15-year duration buckets. These factors accounted for the majority of the Trust’s positive return as the municipal market rallied over the period and the yield curve flattened (long-term rates fell more than short and intermediate rates). Also contributing positively to results were the Trust’s allocations to the strong-performing health and corporate sectors, as well as its heavy exposures to California and Illinois credits, which were among the four top-performing states. Additionally, the tightening of credit spreads during the period bode particularly well for the Trust as it maintained a preference for lower-quality investment grade holdings.
  Although the Trust held only a small allocation to Puerto Rico credits, this exposure represents an opportunity cost as these issues underperformed the broader market and the Trust would have been better served with the assets deployed elsewhere. Conversely, the Trust held low exposure to the tobacco sector, which was the strongest-performing sector for the period. A greater commitment to that sector would have benefited the Trust’s performance.

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.


Trust Information

Symbol on New York Stock Exchange (“NYSE”)
     
BKN
Initial Offering Date
     
February 19, 1993
Yield on Closing Market Price as of April 30, 2013 ($16.11)1
     
5.96%
Tax Equivalent Yield2
     
10.53%
Current Monthly Distribution per Common Share3
     
$0.08
Current Annualized Distribution per Common Share3
     
$0.96
Economic Leverage as of April 30, 20134
     
35%
1   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.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
3   The distribution rate is not constant and is subject to change.
4   Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.
6 ANNUAL REPORT APRIL 30, 2013
 
  
          BlackRock Investment Quality Municipal Trust Inc.

Market Price and Net Asset Value

The table below summarizes the changes in the Trust’s market price and NAV per share:





   
4/30/13
   
4/30/12
   
Change
   
High
   
Low
Market Price
        $ 16.11         $ 15.75            2.29 %        $ 17.42         $ 15.70   
Net Asset Value
        $ 16.35         $ 15.39            6.24 %        $ 16.81         $ 15.39   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:


Sector Allocation




   
4/30/13
   
4/30/12
Health
           27 %           27 %  
County/City/Special District/School District
           20             18    
Transportation
           12             10    
State
           11             15    
Education
           11             10    
Utilities
           11             9    
Corporate
           4             5    
Tobacco
           2             4    
Housing
           2             2    

Credit Quality Allocation1




   
4/30/13
   
4/30/12
AAA/Aaa
           3 %           1 %  
AA/Aa
           35             36    
A
           36             34    
BBB/Baa
           17             20    
BB/Ba
           2             2    
Not Rated2
           7             7    
1   Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012, the market value of these securities was $18,641,489, representing 4%, and $18,973,610, representing 5%, respectively, of the Trust’s long-term investments.

Call/Maturity Schedule3

Calendar Year Ended December 31,
                
 
2013
           6 %  
2014
           4    
2015
           5    
2016
           5    
2017
           3    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
ANNUAL REPORT APRIL 30, 2013 7
 
  
Trust Summary as of April 30, 2013 BlackRock Long-Term Municipal Advantage Trust

Trust Overview

BlackRock Long-Term Municipal Advantage Trust’s (BTA) (the “Trust”) investment objective is to provide current income exempt from regular 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 exempt from federal income tax (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment and, under normal market conditions, the Trust’s municipal bond portfolio will have a dollar-weighted average maturity of greater than 10 years. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.


Performance

  For the 12-month period ended April 30, 2013, the Trust returned 8.19% based on market price and 11.95% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 8.05% based on market price and 10.61% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  During the period, the Trust benefited from its overall long duration bias (greater sensitivity to interest rates) and preference for longer-dated bonds as interest rates declined (bond prices rise when interest rates fall) and the yield curve flattened (long-term rates fell more than short- and intermediate-term rates). The Trust’s allocations to lower-quality investment grade, non-investment grade and non-rated bonds had a positive impact as these segments benefited from the ongoing contraction in credit spreads. Also contributing positively to results were the Trust’s concentrations in the strong-performing health, transportation and corporate sectors. Finally, the Trust’s holdings generated an above-average distribution yield, which in the aggregate, had a meaningful impact on returns.
  Conversely, the Trust held low exposure to the tobacco sector, which was the strongest-performing sector for the period. A greater commitment to this segment would have benefited the Trust’s performance.

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.


Trust Information

Symbol on NYSE
     
BTA
Initial Offering Date
     
February 28, 2006
Yield on Closing Market Price as of April 30, 2013 ($12.50)1
     
5.95%
Tax Equivalent Yield2
     
10.51%
Current Monthly Distribution per Common Share3
     
$0.062
Current Annualized Distribution per Common Share3
     
$0.744
Economic Leverage as of April 30, 20134
     
37%
1   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.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
3   The distribution rate is not constant and is subject to change.
4   Represents TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.
8 ANNUAL REPORT APRIL 30, 2013
 
  
          BlackRock Long-Term Municipal Advantage Trust

Market Price and Net Asset Value

The table below summarizes the changes in the Trust’s market price and NAV per share:





   
4/30/13
   
4/30/12
   
Change
   
High
   
Low
Market Price
        $ 12.50         $ 12.27            1.87 %        $ 13.59         $ 11.76   
Net Asset Value
        $ 12.85         $ 12.19            5.41 %        $ 13.20         $ 12.19   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:


Sector Allocation




   
4/30/13
   
4/30/12
Education
           19 %           15 %  
Health
           17             18    
Utilities
           17             13    
Transportation
           16             14    
County/City/Special District/School District
           14             13    
State
           7             12    
Corporate
           4             5    
Housing
           3             6    
Tobacco
           3             4    

Credit Quality Allocation1




   
4/30/13
   
4/30/12
AAA/Aaa
           21 %           21 %  
AA/Aa
           48             46    
A
           17             17    
BBB/Baa
           7             9    
BB/Ba
           1             1    
B
           1             1    
Not Rated2
           5             5    
1   Using the higher of S&P’s or Moody’s ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012, the market value of these securities was $1,277,033, representing less than 1%, and $1,193,514, representing 1%, respectively, of the Trust’s long-term investments.

Call/Maturity Schedule3

Calendar Year Ended December 31,
                
 
2013
           7 %  
2014
           2    
2015
           11    
2016
           17    
2017
           3    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

ANNUAL REPORT APRIL 30, 2013 9
 
  
Trust Summary as of April 30, 2013 BlackRock Municipal 2020 Term Trust

Trust Overview

BlackRock Municipal 2020 Term Trust’s (BKK) (the “Trust”) investment objectives are to provide current income exempt from regular federal income tax and to return $15 per Common Share (the initial offering price per Common Share) to holders of Common Shares on or about December 31, 2020. The Trust seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality 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 objectives will be achieved.


Performance

  For the 12-month period ended April 30, 2013, the Trust returned 9.37% based on market price and 8.72% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 8.05% based on market price and 10.61% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  During the period, the Trust benefited from rising municipal bond prices, tighter credit spreads and a flatter yield curve (long-term municipal rates fell more than short- and intermediate-term rates). The accrual of income generated from coupon payments on the Trust’s fully invested portfolio of tax-exempt municipal bonds boosted performance.
  The Trust is managed to a 2020 termination date and therefore generally maintains a shorter maturity profile than its Lipper category competitors. The Trust’s shorter maturity profile was a disadvantage relative to its Lipper category competitors as the municipal yield curve moved lower and flattened during the period. The Trust had limited exposure to the long end of the curve, where interest rates fell the most, and therefore did not experience price appreciation of the same magnitude as did its Lipper category competitors with longer maturity profiles.

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.


Trust Information

Symbol on NYSE
     
BKK
Initial Offering Date
     
September 30, 2003
Termination Date (on or about)
     
December 31, 2020
Yield on Closing Market Price as of April 30, 2013 ($16.64)1
     
4.49%
Tax Equivalent Yield2
     
7.93%
Current Monthly Distribution per Common Share3
     
$0.06225
Current Annualized Distribution per Common Share3
     
$0.74700
Economic Leverage as of April 30, 20134
     
33%
1   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.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
3   The distribution rate is not constant and is subject to change.
4   Represents AMPS and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to AMPS and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.
10 ANNUAL REPORT APRIL 30, 2013
 
  
          BlackRock Municipal 2020 Term Trust

Market Price and Net Asset Value

The table below summarizes the changes in the Trust’s market price and NAV per share:





   
4/30/13
   
4/30/12
   
Change
   
High
   
Low
Market Price
        $ 16.64         $ 16.06            3.61 %        $ 17.29         $ 15.94   
Net Asset Value
        $ 16.85         $ 16.36            3.00 %        $ 17.04         $ 16.35   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:


Sector Allocation




   
4/30/13
   
4/30/12
Transportation
           16 %           14 %  
Utilities
           15             15    
State
           14             17    
Health
           14             10    
County/City/Special District/School District
           13             13    
Corporate
           12             13    
Tobacco
           6             8    
Housing
           5             4    
Education
           5             6    

Credit Quality Allocation1




   
4/30/13
   
4/30/12
AAA/Aaa
           11 %           14 %  
AA/Aa
           23             25    
A
           37             29    
BBB/Baa
           18             22    
BB/Ba
           1             1    
B
                       1    
Not Rated2
           10             8    
1   Using the higher of S&P’s or Moody’s ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012, the market value of these securities was $19,936,315, representing 4%, and $14,828,808, representing 3%, respectively, of the Trust’s long-term investments.

Call/Maturity Schedule3

Calendar Year Ended December 31,
                
 
2013
           21 %  
2014
           5    
2015
           4    
2016
           9    
2017
           3    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
ANNUAL REPORT APRIL 30, 2013 11
 
  
Trust Summary as of April 30, 2013 BlackRock Municipal Income Trust

Trust Overview

BlackRock Municipal Income Trust’s (BFK) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality 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.


Performance

  For the 12-month period ended April 30, 2013, the Trust returned 10.55% based on market price and 12.84% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 8.05% based on market price and 10.61% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to neither a premium nor discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  During the period, the Trust benefited from its overall long duration bias (greater sensitivity to interest rates) and preference for longer-dated bonds as interest rates declined (bond prices rise when interest rates fall) and the yield curve flattened (long-term rates fell more than short- and intermediate-term rates). The Trust’s allocations to lower-quality investment grade, non-investment grade and non-rated bonds had a positive impact as these segments benefited from the ongoing contraction in credit spreads. Also contributing positively to results were the Trust’s concentrations in the strong-performing health, transportation and corporate sectors. Finally, the Trust’s holdings generated an above-average distribution yield, which in the aggregate, had a meaningful impact on returns.
  Conversely, the Trust held low exposure to the tobacco sector, which was the strongest-performing sector for the period. A greater commitment to this segment would have benefited the Trust’s performance.

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.


Trust Information

Symbol on NYSE
     
BFK
Initial Offering Date
     
July 27, 2001
Yield on Closing Market Price as of April 30, 2013 ($15.40)1
     
6.24%
Tax Equivalent Yield2
     
11.02%
Current Monthly Distribution per Common Share3
     
$0.0801
Current Annualized Distribution per Common Share3
     
$0.9612
Economic Leverage as of April 30, 20134
     
39%
1   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.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
3   The Monthly Distribution per Common Share, declared on June 3, 2013, was decreased to $0.0751 per share. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.
4   Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.
12 ANNUAL REPORT APRIL 30, 2013
 
  
          BlackRock Municipal Income Trust

Market Price and Net Asset Value

The table below summarizes the changes in the Trust’s market price and NAV per share:





   
4/30/13
   
4/30/12
   
Change
   
High
   
Low
Market Price
        $ 15.40         $ 14.83            3.84 %        $ 16.78         $ 14.82   
Net Asset Value
        $ 15.40         $ 14.53            5.99 %        $ 15.88         $ 14.53   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:


Sector Allocation




   
4/30/13
   
4/30/12
Transportation
           22 %           20 %  
Health
           19             19    
Utilities
           15             14    
State
           12             14    
County/City/Special District/School District
           11             9    
Corporate
           9             9    
Education
           7             8    
Tobacco
           3             5    
Housing
           2             2    

Credit Quality Allocation1




   
4/30/13
   
4/30/12
AAA/Aaa
           10 %           11 %  
AA/Aa
           35             35    
A
           27             26    
BBB/Baa
           17             16    
BB/Ba
           1             1    
B
           2             3    
Not Rated2
           8             8    
1   Using the higher of S&P’s or Moody’s ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012, the market value of these securities was $31,712,268, representing 3%, and $30,018,520, representing 4%, respectively, of the Trust’s long-term investments.

Call/Maturity Schedule3

Calendar Year Ended December 31,
                
 
2013
           11 %  
2014
           3    
2015
           3    
2016
           6    
2017
           4    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
ANNUAL REPORT APRIL 30, 2013 13
 
  
Trust Summary as of April 30, 2013 BlackRock Pennsylvania Strategic Municipal Trust

Trust Overview

BlackRock Pennsylvania Strategic Municipal Trust’s (BPS) (the “Trust”) investment objectives are to provide current income that is exempt from regular federal and Pennsylvania income taxes and to invest in municipal bonds that over time will perform better than the broader Pennsylvania municipal bond market. The Trust seeks to achieve its investment objectives by investing, under normal market conditions, primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Pennsylvania income taxes. The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality 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 objectives will be achieved.


Performance

  For the 12-month period ended April 30, 2013, the Trust returned 4.19% based on market price and 8.45% based on NAV. For the same period, the closed-end Lipper Pennsylvania Municipal Debt Funds category posted an average return of 5.10% based on market price and 8.32% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  During the period, the Trust benefited from rising municipal bond prices, a flatter yield curve (long-term municipal rates fell more than short- and intermediate-term rates) and tighter credit spreads. The accrual of income generated from coupon payments on the Trust’s fully invested portfolio of tax-exempt municipal bonds boosted performance.

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.


Trust Information

Symbol on NYSE MKT
     
BPS
Initial Offering Date
     
August 25, 1999
Yield on Closing Market Price as of April 30, 2013 ($15.04)1
     
5.66%
Tax Equivalent Yield2
     
10.32%
Current Monthly Distribution per Common Share3
     
$0.071
Current Annualized Distribution per Common Share3
     
$0.852
Economic Leverage as of April 30, 20134
     
41%
1   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.
2   Tax equivalent yield assumes the maximum marginal federal and state tax rate of 45.14%, 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.
3   The Monthly Distribution per Common Share, declared on June 3, 2013, was decreased to $0.065 per share. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.
4   Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.
14 ANNUAL REPORT APRIL 30, 2013
 
  
          BlackRock Pennsylvania Strategic Municipal Trust

Market Price and Net Asset Value

The table below summarizes the changes in the Trust’s market price and NAV per share:





   
4/30/13
   
4/30/12
   
Change
   
High
   
Low
Market Price
        $ 15.04         $ 15.27            (1.51 )%        $ 16.48         $ 14.09   
Net Asset Value
        $ 15.45         $ 15.07            2.52 %        $ 16.06         $ 15.06   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:


Sector Allocation




   
4/30/13
   
4/30/12
Health
           29 %           33 %  
State
           17             12    
Education
           16             15    
Transportation
           13             11    
Housing
           10             12    
County/City/Special District/School District
           7             10    
Utilities
           5             4    
Corporate
           3             3    

Credit Quality Allocation1




   
4/30/13
   
4/30/12
AAA/Aaa
           1 %              
AA/Aa
           62             67 %  
A
           27             19    
BBB/Baa
           8             9    
BB/Ba
                       1    
Not Rated2
           2             4    
1   Using the higher of S&P’s or Moody’s ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012, the market value of these securities was $561,020, representing 1%, and $1,616,703, representing 4%, respectively, of the Trust’s long-term investments.

Call/Maturity Schedule3

Calendar Year Ended December 31,
                
 
2013
           4 %  
2014
           2    
2015
           2    
2016
           5    
2017
           4    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
ANNUAL REPORT APRIL 30, 2013 15
 
  
Trust Summary as of April 30, 2013 BlackRock Strategic Municipal Trust

Trust Overview

BlackRock Strategic Municipal Trust’s (BSD) (the “Trust”) investment objectives are to provide current income that is exempt from regular federal income tax and to invest in municipal bonds that over time will perform better than the broader municipal bond market. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in investments exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests at least 80% of its assets in investment grade quality securities 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. 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.


Performance

  For the 12-month period ended April 30, 2013, the Trust returned 10.40% based on market price and 12.29% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 8.05% based on market price and 10.61% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
  During the period, the Trust benefited from its overall long duration bias (greater sensitivity to interest rates) and preference for longer-dated bonds as interest rates declined (bond prices rise when interest rates fall) and the yield curve flattened (long-term rates fell more than short- and intermediate-term rates). The Trust’s allocations to lower-quality investment grade, non-investment grade and non-rated bonds had a positive impact as these segments benefited from the ongoing contraction in credit spreads. Also contributing positively to results were the Trust’s concentrations in the strong-performing health, transportation and corporate sectors. Finally, the Trust’s holdings generated an above-average distribution yield, which in the aggregate, had a meaningful impact on returns.
  Conversely, the Trust held low exposure to the tobacco sector, which was the strongest-performing sector for the period. A greater commitment to this segment would have benefited the Trust’s performance.

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.


Trust Information

Symbol on NYSE
     
BSD
Initial Offering Date
     
August 25, 1999
Yield on Closing Market Price as of April 30, 2013 ($14.97)1
     
5.93%
Tax Equivalent Yield2
     
10.48%
Current Monthly Distribution per Common Share3
     
$0.074
Current Annualized Distribution per Common Share3
     
$0.888
Economic Leverage as of April 30, 20134
     
39%
1   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.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
3   The distribution rate is not constant and is subject to change.
4   Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.
16 ANNUAL REPORT APRIL 30, 2013
 
  
          BlackRock Strategic Municipal Trust

Market Price and Net Asset Value

The table below summarizes the changes in the Trust’s market price and NAV per share:





   
4/30/13
   
4/30/12
   
Change
   
High
   
Low
Market Price
        $ 14.97         $ 14.38            4.10 %        $ 16.48         $ 14.21   
Net Asset Value
        $ 15.28         $ 14.43            5.89 %        $ 15.73         $ 14.43   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:


Sector Allocation




   
4/30/13
   
4/30/12
Transportation
           23 %           20 %  
Health
           22             23    
State
           13             15    
Utilities
           12             11    
County/City/Special District/School District
           11             8    
Education
           9             11    
Corporate
           8             9    
Tobacco
           2             3    

Credit Quality Allocation1




   
4/30/13
   
4/30/12
AAA/Aaa
           13 %           13 %  
AA/Aa
           37             37    
A
           24             22    
BBB/Baa
           16             16    
BB/Ba
           2             2    
B
           1             3    
Not Rated2
           7             7    
1   Using the higher of S&P’s or Moody’s ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012, the market value of these securities was $5,654,223 and $4,567,039, each representing 3%, respectively, of the Trust’s long-term investments.

Call/Maturity Schedule3

Calendar Year Ended December 31,
                
 
2013
           5 %  
2014
           2    
2015
           4    
2016
           8    
2017
           5    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
ANNUAL REPORT APRIL 30, 2013 17
 
  
Schedule of Investments April 30, 2013 BlackRock Investment Quality Municipal Trust Inc. (BKN)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Alabama — 3.3%
                                        
Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC):
                                        
6.00%, 6/01/34
        $  1,745         $    2,076,934     
6.00%, 6/01/39
           500             595,110   
Birmingham Water Works Board, RB, 4.75%, 1/01/36
           3,150            3,439,264   
Hoover City Board of Education, Special Tax, Refunding, 4.25%, 2/15/40
           3,050            3,257,431   
 
                         9,368,739   
Arizona — 9.2%
                                        
Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42
           3,300            3,546,543   
Arizona Sports & Tourism Authority, RB, Multipurpose Stadium Facilities, Series A (NPFGC), 5.00%, 7/01/13 (a)
           750             756,045   
Arizona State University, RB, Series D, 5.50%, 7/01/26
           475             572,138   
City of Mesa, Excise Tax, RB, 5.00%, 7/01/32
           3,000            3,428,610   
County of Pinal Arizona Election District No. 3, Refunding RB, 4.75%, 7/01/31
           3,750            4,097,100   
Pima County IDA, Refunding IDRB, Tucson Electric Power, 5.75%, 9/01/29
           1,375            1,448,631   
Salt Verde Financial Corp., RB, Senior:
                                        
5.00%, 12/01/32
           1,035            1,174,673   
5.00%, 12/01/37
           4,585            5,144,141   
San Luis Facility Development Corp., RB, Senior Lien, Regional Detention Center Project:
                                        
6.25%, 5/01/15
           210             208,217   
7.00%, 5/01/20
           490             477,873   
7.25%, 5/01/27
           980             863,997   
State of Arizona, COP, Department of Administration, Series A (AGM), 5.00%, 10/01/29
           1,100            1,244,023   
University Medical Center Corp. Arizona, RB, 6.50%, 7/01/39
           750             869,325   
University Medical Center Corp. Arizona, Refunding RB, 6.00%, 7/01/39
           1,600            1,847,552   
 
                         25,678,868   
Arkansas — 0.3%
                                        
City of Conway Arkansas, RB, Wastewater Revenue Improvement, Series A, 4.20%, 10/01/37
           750             802,013   
California — 22.4%
                                        
California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, 11.08%, 6/01/55 (b)
           7,090            75,934   
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 8/15/31
           2,300            2,808,208   
Carlsbad Unified School District, GO, Election of 2006, Series B, 4.81%, 5/01/34 (c)
           1,500            1,282,275   
City of Manteca California Sewer, Refunding RB, 4.00%, 12/01/33
           1,500            1,573,065   
                     
Municipal Bonds          Par
(000)
     Value
California (concluded)
                                        
City of San Jose California, Refunding ARB, Series A-1, AMT, 5.75%, 3/01/34
        $  3,000         $    3,463,410   
County of Sacramento California, RB, Senior Series A (AGM), 5.00%, 7/01/41
           2,100            2,298,597     
Dinuba Unified School District, GO, Election of 2006 (AGM):
                                        
5.63%, 8/01/31
           250             287,765   
5.75%, 8/01/33
           535             618,283   
Foothill Eastern Transportation Corridor Agency California, Refunding RB:
                                        
5.75%, 1/15/40
           3,495            3,496,503   
CAB, 5.88%, 1/15/28
           7,000            7,175,980   
Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 4.94%, 8/01/34 (c)
           2,475            1,885,505   
Norwalk-La Mirada Unified School District California, GO, CAB, Refunding, Election of 2002, Series E (AGC), 4.84%, 8/01/38 (b)
           12,000            3,584,520   
Palomar Community College District, GO, CAB, Election of 2006, Series B:
                                        
4.36%, 8/01/30 (b)
           2,270            1,078,568   
5.54%, 8/01/33 (b)
           4,250            1,404,243   
4.69%, 8/01/39 (c)
           3,000            1,982,790   
San Diego Community College District California, GO, CAB, Election of 2002, 4.61%, 8/01/19 (c)
           4,200            3,635,982   
San Jose Evergreen Community College District, GO, Election of 2010, Series B, 3.50%, 8/01/32
           1,800            1,838,250   
State of California, GO, Various Purpose:
                                        
5.75%, 4/01/31
           3,000            3,555,060   
6.00%, 3/01/33
           2,270            2,793,575   
6.50%, 4/01/33
           2,900            3,626,885   
5.50%, 3/01/40
           3,650            4,276,486   
(CIFG), 5.00%, 3/01/33
           4,485            4,770,470   
State of California, GO, Refunding, Various Purpose (NPFGC), 5.00%, 6/01/37
           5,000            5,399,750   
 
                         62,912,104   
Colorado — 0.3%
                                        
Park Creek Metropolitan District, Refunding RB, Senior Limited Property Tax (AGM), 6.00%, 12/01/38
           750             875,580   
Connecticut — 1.0%
                                        
Connecticut State Health & Educational Facilities Authority, Refunding RB:
                                        
Hartford Healthcare, Series A, 5.00%, 7/01/32
           1,000            1,119,300   
Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/36
           950             1,049,028   
Sacred Heart University, Series G, 5.38%, 7/01/31
           600             670,938   
 
                         2,839,266   

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedules 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)
ARB
Airport Revenue Bonds
ARS
Auction Rate Securities
CAB
Capital Appreciation Bonds
CIFG
CDC IXIS Financial Guaranty
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
HDA
Housing Development Authority
   
HFA
Housing Finance Agency
HRB
Housing Revenue Bonds
IDA
Industrial Development Authority
IDB
Industrial Development Board
IDRB
Industrial Development Revenue Bonds
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
Syncora
Syncora Guarantee
VRDN
Variable Rate Demand Notes
   

See Notes to Financial Statements.

18 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (continued)  BlackRock Investment Quality Municipal Trust Inc. (BKN)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Delaware — 0.7%
                                        
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40
        $  1,800         $    2,034,756   
Florida — 12.5%
                                        
County of Lee Florida, Refunding ARB, Lee Airport, Series A, AMT (AGM), 5.00%, 10/01/28
           3,000            3,334,980     
County of Miami-Dade Florida, RB, CAB (b):
                                        
Sub-Series A (NPFGC) 5.12%, 10/01/32
           4,225            1,582,474   
Sub-Series A (NPFGC) 5.14%, 10/01/33
           4,000            1,419,040   
Sub-Series A (NPFGC) 5.15%, 10/01/34
           4,580            1,541,536   
Sub-Series A (NPFGC) 5.16%, 10/01/35
           5,000            1,594,250   
Subordinate Special Obligation, 4.73%, 10/01/32
           5,000            2,016,600   
Subordinate Special Obligation, 4.77%, 10/01/33
           15,375            5,871,866   
County of Orange Florida, Refunding RB (Syncora), 4.75%, 10/01/32
           5,000            5,453,200   
Hillsborough County IDA, RB, National Gypsum Co., AMT, 7.13%, 4/01/30
           3,700            3,711,692   
Orange County Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%, 6/01/32
           200             213,126   
Sumter Landing Community Development District Florida, RB, Sub-Series B, 5.70%, 10/01/38
           3,465            3,265,624   
Village Community Development District No. 6, Special Assessment Bonds, 5.63%, 5/01/22 (a)
           5,015            5,015,702   
 
                         35,020,090   
Georgia — 0.6%
                                        
Milledgeville & Baldwin County Development Authority, RB, Georgia College & State University Foundation, 6.00%, 9/01/14 (a)
           1,500            1,627,230   
Hawaii — 0.2%
                                        
Hawaii State Department of Budget & Finance Senior Living, Refunding RB, Special Purpose — Kahala Nui, 5.25%, 11/15/37
           600             657,498   
Idaho — 1.1%
                                        
Idaho Health Facilities Authority, Refunding RB, Trinity Health Group, Series B, 6.25%, 12/01/33
           2,500            2,989,950   
Illinois — 12.2%
                                        
Chicago Illinois Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40
           1,000            1,143,930   
Chicago Public Building Commission Building Illinois, RB, Series A (NPFGC), 7.00%, 1/01/20 (d)
           5,000            6,599,000   
City of Chicago Illinois, Refunding RB, O’Hare International Airport Passenger Facility Charge, Series B, AMT, 4.00%, 1/01/29
           6,000            6,100,980   
Illinois Finance Authority, RB:
                                        
Northwestern Memorial Hospital, Series A, 5.50%, 8/15/14 (a)
           5,800            6,182,626   
Rush University Medical Center, Series C, 6.63%, 11/01/39
           1,200            1,463,856   
Illinois Finance Authority, Refunding RB:
                                        
Friendship Village Schaumburg, Series A, 5.63%, 2/15/37
           345             348,712   
OSF Healthcare System, Series A, 6.00%, 5/15/39
           1,490            1,727,730   
Roosevelt University Project, 6.50%, 4/01/44
           1,500            1,709,490   
Railsplitter Tobacco Settlement Authority, RB:
                                        
6.25%, 6/01/24
           6,000            6,747,660   
6.00%, 6/01/28
           1,700            2,076,023   
 
                         34,100,007   
Indiana — 0.5%
                                        
Indiana Finance Authority, Refunding RB, Improvement, U.S. Steel Corp., 6.00%, 12/01/26
           1,350            1,435,860   
Iowa — 1.5%
                                        
Iowa Higher Education Loan Authority, RB, Private College Facility, Buena Vista University Project, 5.00%, 4/01/31
           1,355            1,513,345   
                     
Municipal Bonds          Par
(000)
     Value
Iowa (concluded)
                                        
Iowa Higher Education Loan Authority, Refunding RB, Private College Facility:
                                        
5.75%, 9/01/30
        $ 965          $    1,097,003   
6.00%, 9/01/39
            1,500            1,693,410     
 
                         4,303,758   
Kansas — 0.9%
                                        
Kansas Development Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 5.00%, 1/01/28
           1,155            1,298,104   
Pratt County Public Building Commission, RB, 3.25%, 12/01/32
           1,200            1,187,952   
 
                         2,486,056   
Kentucky — 3.1%
                                        
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 3.70%, 10/01/23 (b)
           8,500            5,802,695   
Louisville & Jefferson County Metropolitan Government, Refunding RB, Jewish Hospital & St. Mary’s Healthcare, 6.13%, 2/01/18 (a)
           2,250            2,813,467   
 
                         8,616,162   
Louisiana — 2.4%
                                        
Lafayette Public Trust Financing Authority, Refunding RB, Ragin Cajun Facilities Project, 3.75%, 10/01/32
           780             801,068   
Louisiana Local Government Environmental Facilities & Community Development Authority, RB:
                                        
Parish of Plaquemines Project (AGM), 4.00%, 9/01/42
           720             734,040   
Westlake Chemical Corp. Projects, Series A-1, 6.50%, 11/01/35
           1,565            1,877,029   
Louisiana Public Facilities Authority, RB:
                                        
5.00%, 7/01/42
           2,400            2,654,376   
Belle Chasse Educational Foundation Project, 6.50%, 5/01/31
           600             700,518   
 
                         6,767,031   
Maryland — 1.7%
                                        
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25
           180             200,997   
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Doctor’s Community Hospital, 5.63%, 7/01/30
           4,100            4,606,514   
 
                         4,807,511   
Michigan — 2.8%
                                        
Board of Control of Michigan Technological University, Refunding RB, General, Series A, 4.00%, 10/01/30
           1,930            2,028,044   
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38
           1,875            2,273,344   
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39
           2,750            3,523,217   
 
                         7,824,605   
Minnesota — 1.0%
                                        
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38
           2,250            2,755,125   
Mississippi — 3.3%
                                        
Mississippi Development Bank, RB, Special Obligation:
                                        
Hinds Community College District, Capital Improvement Project (AGM), 5.00%, 4/01/36
           1,910            2,138,856   
Jackson County Limited Tax Note (AGC), 5.50%, 7/01/32
           2,655            3,008,593   
University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/36
           3,150            3,580,574   

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 19
 
  
Schedule of Investments (continued)  BlackRock Investment Quality Municipal Trust Inc. (BKN)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Mississippi (concluded)
                                        
Warren County Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, AMT, 5.38%, 12/01/35
        $  600          $    663,798     
 
                         9,391,821   
Missouri — 4.2%
                                        
Missouri State Development Finance Board, RB:
                                        
Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41
           1,350            1,473,944   
St. Joseph Sewage System Improvements, Series E, 5.25%, 5/01/31
           620             667,318   
Missouri State Development Finance Board, Refunding RB, Electric System Projects, Series F, 4.00%, 6/01/32
           5,815            5,962,003   
Missouri State Health & Educational Facilities Authority, RB:
                                        
A.T. Still University Health Sciences, 5.25%,10/01/31
           500             566,435   
Heartland Regional Medical Center, 4.13%, 2/15/43
           1,530            1,533,290   
Missouri State Health & Educational Facilities Authority, Refunding RB, Coxhealth, Series A, 5.00%, 11/15/38
           1,500            1,648,290   
 
                         11,851,280   
Montana — 0.5%
                                        
Montana Facility Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 4.75%, 1/01/40
           1,250            1,363,913   
Nebraska — 3.0%
                                        
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42
           900             973,368   
Omaha Nebraska Sanitation Sewer, RB:
                                        
3.25%, 11/15/37
           1,600            1,536,720   
4.25%, 11/15/38
           2,290            2,456,048   
4.00%, 11/15/42
           3,300            3,465,660   
 
                         8,431,796   
Nevada — 0.4%
                                        
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29
           1,065            1,164,162   
New Jersey — 4.2%
                                        
Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (e)(f)
           1,510            105,685   
New Jersey EDA, RB:
                                        
Cigarette Tax, 5.75%, 6/15/14 (a)
           3,000            3,182,160   
Continental Airlines, Inc. Project, AMT, 6.25%, 9/15/29
           1,335            1,402,524   
New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B:
                                        
7.13%, 12/01/23
           950             1,216,523   
7.50%, 12/01/32
           1,225            1,524,120   
New Jersey Health Care Facilities Financing Authority, Refunding RB, Barnabas Health, Series A:
                                        
4.63%, 7/01/23
           770             873,465   
5.63%, 7/01/37
           2,560            2,887,245   
New Jersey State Housing & Mortgage Finance Agency, RB, Series AA, 6.50%, 10/01/38
           505             524,634   
 
                         11,716,356   
New Mexico — 0.3%
                                        
New Mexico State University, Refunding RB, Series A, 3.50%, 4/01/33
           780             781,934   
New York — 6.1%
                                        
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35 (e)(f)
           725             108,678   
Hudson New York Yards Infrastructure Corp., RB, Series A:
                                        
(AGM), 5.00%, 2/15/47
           1,250            1,331,850   
(NPFGC), 4.50%, 2/15/47
           1,980            2,047,300   
                     
Municipal Bonds          Par
(000)
     Value
New York (concluded)
                                        
Long Island Power Authority, Refunding RB, Series A, 5.75%, 4/01/39
        $ 2,475         $ 2,931,811   
New York City Industrial Development Agency, RB:
                                        
American Airlines, Inc., JFK International Airport, AMT, 7.63%, 8/01/25 (e)(f)(g)
            2,600               2,968,186     
Queens Baseball Stadium, PILOT (AGC), 6.50%, 1/01/46
           300             351,282   
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49
           1,250            1,494,488   
New York State Dormitory Authority, RB, Rochester Institute of Technology, Series A, 6.00%, 7/01/18 (a)
           1,625            2,043,161   
Niagara Area Development Corp., Refunding RB, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42
           600             623,484   
Onondaga Civic Development Corp., Refunding RB, Saint Joseph’s Hospital Health Center Project, 4.50%, 7/01/32
           1,420            1,426,276   
Westchester County Healthcare Corp. New York, Refunding RB, Senior Lien, 5.00%, 11/01/30
           1,600            1,780,160   
 
                         17,106,676   
North Carolina — 4.1%
                                        
Gaston County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35
           2,425            2,262,161   
North Carolina Medical Care Commission, Refunding RB:
                                        
Novant Health, Series A, 4.00%, 11/01/46 (h)
           5,600            5,448,688   
South Eastern Medical Region, 3.25%, 6/01/27
           450             444,060   
South Eastern Medical Region, 5.00%, 6/01/32
           985             1,108,095   
University Health System, Series D, 6.25%, 12/01/33
           1,750            2,095,993   
 
                         11,358,997   
North Dakota — 1.0%
                                        
City of Fargo North Dakota, Refunding RB, University Facilities Development Foundation Project, 3.00%, 12/01/30
           600             578,514   
City of Grand Forks North Dakota, Refunding RB, 5.00%, 12/01/32
           2,120            2,304,822   
 
                         2,883,336   
Ohio — 0.9%
                                        
Kent State University, RB, General Receipts, Series A, 5.00%, 5/01/42
           1,200            1,355,772   
Miami University Oxford Ohio, RB, General Receipts, 3.25%, 9/01/34
           1,200            1,148,916   
 
                         2,504,688   
Oklahoma — 0.7%
                                        
Oklahoma Municipal Power Authority, RB, Power Supply System, Series A, 4.00%, 1/01/38
           1,750            1,827,035   
Oregon — 2.6%
                                        
City of Madras Oregon, GO, Refunding, Full Faith and Credit Refunding Obligations, 4.00%, 2/15/33
           750             737,865   
Clackamas County Housing Authority, HRB, M/F Housing, Easton Ridge Apartments Project, Series A:
                                        
3.50%, 9/01/33
           760             754,505   
4.00%, 9/01/43
           660             660,502   
4.00%, 9/01/49
           1,000            1,003,460   
Oregon Health & Science University, RB, Series A, 5.75%, 7/01/39
           1,250            1,469,937   
Oregon Health & Science University, Refunding RB:
                                        
Series A, 3.00%, 7/01/24
           1,500            1,550,850   
Series E, 5.00%, 7/01/32
           500             576,590   
Oregon State Facilities Authority, Refunding RB, Limited College Project, Series A, 5.25%, 10/01/40
           500             555,000   
 
                         7,308,709   

See Notes to Financial Statements.

20 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (continued)  BlackRock Investment Quality Municipal Trust Inc. (BKN)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Pennsylvania — 2.9%
                                        
County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27
        $  2,535         $    2,820,467     
Delaware River Port Authority, RB, Series D (AGM), 5.00%, 1/01/40
           3,640            4,062,968   
McKeesport Area School District, GO, CAB, Refunding (NPFGC) (b):
                                        
3.00%, 10/01/31 (d)
           500             288,915   
4.37%, 10/01/31
           2,435            1,098,209   
 
                         8,270,559   
Puerto Rico — 1.2%
                                        
Puerto Rico Sales Tax Financing Corp., RB:
                                        
CAB, Series A, 5.72%, 8/01/35 (b)
           1,000            285,130   
First Sub-Series A, 5.75%, 8/01/37
           1,500            1,609,530   
Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.64%, 8/01/41 (b)
           7,500            1,559,025   
 
                         3,453,685   
Rhode Island — 1.8%
                                        
Rhode Island Health & Educational Building Corp., RB, Hospital Financing, LifeSpan Obligation, Series A (AGC), 7.00%, 5/15/39
           3,000            3,600,960   
State of Rhode Island, COP, Series C, School for the Deaf (AGC), 5.38%, 4/01/28
           1,330            1,506,291   
 
                         5,107,251   
South Carolina — 3.5%
                                        
South Carolina Jobs, EDA, Refunding RB:
                                        
Palmetto Health Alliance, Series A, 6.25%, 8/01/31
           2,185            2,217,010   
Palmetto Health, Series C, 6.88%, 8/01/13 (a)
           3,560            3,619,559   
South Carolina State Housing Finance & Development Authority, Refunding RB, Series A-2, AMT (AMBAC), 5.15%, 7/01/37
           3,655            3,844,914   
 
                         9,681,483   
Tennessee — 1.9%
                                        
Johnson City Health & Educational Facilities Board, RB, 5.00%, 8/15/42
           1,200            1,304,916   
Memphis-Shelby County Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A:
                                        
5.25%, 11/01/27
           1,135            1,278,657   
5.38%, 11/01/28
           1,000            1,127,400   
Shelby County Health Educational & Housing Facilities Board, RB, Methodist Le Bonheur Healthcare, 5.00%, 5/01/42
           1,540            1,713,296   
 
                         5,424,269   
Texas — 10.8%
                                        
Central Texas Regional Mobility Authority, Refunding RB (h):
                                        
Senior Lien, Series A, 5.00%, 1/01/43
           140             151,127   
Subordinate Lien, 5.00%, 1/01/42
           230             239,287   
Harris County Cultural Education Facilities Finance Corp., Refunding RB, Young Men’s Christian Association of the Greater Houston Area, Series A, 5.00%, 6/01/38
           345             370,723   
Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B (a):
                                        
7.13%, 12/01/18
           1,000            1,327,510   
7.25%, 12/01/18
           2,650            3,544,322   
Harris County-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC), 5.46%, 11/15/38 (b)
           5,000            1,264,200   
Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, 5.25%, 11/01/40
           1,445            1,574,169   
Lower Colorado River Authority, Refunding RB, Series A (NPFGC), 5.00%, 5/15/13 (a)
           5             5,010   
Matagorda County Navigation District No. 1 Texas, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29
           2,200            2,594,746   
                     
Municipal Bonds          Par
(000)
     Value
Texas (concluded)
                                        
Midland County Fresh Water Supply District No. 1, Refunding RB, City of Midland Project:
                                        
3.38%, 9/15/32
        $  2,425         $    2,435,719     
CAB, Series A, 4.46%, 9/15/36 (b)
           7,640            2,726,792   
CAB, Series A, 4.60%, 9/15/38 (b)
           16,780            5,298,621   
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40
           3,000            3,670,920   
Texas State Turnpike Authority, RB, CAB (AMBAC), 5.97%, 8/15/31 (b)
           15,000            5,114,400   
 
                         30,317,546   
Vermont — 1.8%
                                        
University of Vermont & State Agricultural College, Refunding RB, Series A, 4.00%, 10/01/38
           1,800            1,875,168   
Vermont Educational & Health Buildings Financing Agency, RB, Hospital, Fletcher Allen Health, Series A, 4.75%, 12/01/36
           1,495            1,582,592   
Vermont Educational & Health Buildings Financing Agency, Refunding RB, St. Michaels College, 5.00%, 10/01/42
           1,350            1,489,604   
 
                         4,947,364   
Virginia — 1.7%
                                        
Prince William County IDA, Refunding RB, Novant Health Obligation Group, Series B, 4.00%, 11/01/46 (h)
           2,800            2,752,148   
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossing OPCO LLC Project, AMT, 5.50%, 1/01/42
           1,870            2,035,495   
 
                         4,787,643   
Washington — 0.9%
                                        
Washington Health Care Facilities Authority, RB, MultiCare Health System, Series B (AGC), 6.00%, 8/15/39
           2,100            2,443,455   
West Virginia — 0.7%
                                        
West Virginia State University, RB, West Virginia University Projects, Series B, 5.00%, 10/01/36
           1,650            1,913,851   
Wyoming — 0.7%
                                        
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, 5.25%, 7/15/26
           1,800            2,038,860   
Total Municipal Bonds — 136.9%
                         383,978,878   

Municipal Bonds Transferred to
                                        
Tender Option Bond Trusts (i)
Colorado — 2.0%
                                        
Colorado Health Facilities Authority, RB, Catholic Health, Series C-7 (AGM), 5.00%, 9/01/36
           5,250            5,714,362   
Massachusetts — 1.2%
                                        
Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41
           3,070            3,427,532   
Michigan — 2.2%
                                        
Michigan State Hospital Finance Authority, Refunding RB, 4.00%, 12/01/32
           6,000            6,217,440   
New Jersey — 1.2%
                                        
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (j)
           2,860            3,267,664   
New York — 9.3%
                                        
Hudson New York Yards Infrastructure Corp., RB, Senior, Series A, 5.75%, 2/15/47
           1,750            2,077,505   
New York City Municipal Water Finance Authority, RB, Water & Sewer System, Series A, 5.75%, 6/15/40
           690             817,276   

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 21
 
  
Schedule of Investments (continued)  BlackRock Investment Quality Municipal Trust Inc. (BKN)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to
Tender Option Bond Trusts (i)
         Par
(000)
     Value
New York (concluded)
                                        
New York City Municipal Water Finance Authority, Refunding RB, Water & Sewer System:
                                        
Second General Resolution, Series CC, 5.00%, 6/15/47
        $ 4,000         $    4,573,120     
Second Generation Resolution, Series FF-2, 5.50%, 6/15/40
           810             955,754   
Series A, 4.75%, 6/15/30
           4,000            4,462,720   
New York Liberty Development Corp., RB, 1 World Trade Center, 5.25%, 12/15/43
           4,500            5,168,269   
New York State Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/38
           3,359            3,826,889   
New York State Dormitory Authority, Refunding LRB, State University Dormitory Facilities, Series A, 5.00%, 7/01/42
           1,200            1,383,816   
New York State Thruway Authority, Refunding RB, 5.00%, 3/15/31
           2,360            2,754,734   
 
                         26,020,083   
Ohio — 1.7%
                                        
County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 10/01/41
           1,740            1,856,180   
                     
Municipal Bonds Transferred to
Tender Option Bond Trusts (i)
         Par
(000)
     Value
Ohio (concluded)
                                        
Ohio Higher Educational Facility Commission, Refunding RB, Hospital, Cleveland Clinic Health, Series A, 5.25%, 1/01/33
        $ 2,600         $ 2,886,520   
 
                         4,742,700   
Total Municipal Bonds Transferred to
                                        
Tender Option Bond Trusts — 17.6%
                         49,389,781   
Total Long-Term Investments
                                        
(Cost — $390,611,407) — 154.5%
                         433,368,659   

Short-Term Securities
           Shares                  
FFI Institutional Tax-Exempt Fund, 0.03% (k)(l)
           4,475,537            4,475,537   
Total Short-Term Securities
                                        
(Cost — $4,475,537) — 1.6%
                         4,475,537   
Total Investments (Cost — $395,086,944) — 156.1%
                         437,844,196   
Liabilities in Excess of Other Assets — (1.5)%
                         (4,219,104 )  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (9.7)%
                         (27,211,293 )  
VMTP Shares, at Liquidation Value — (44.9)%
                         (125,900,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 280,513,799   

Notes to Schedule of Investments

(a)      
US 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)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(c)      
Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.
(d)      
Security is collateralized by Municipal or US Treasury obligations.
(e)      
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(f)      
Non-income producing security.
(g)      
Variable rate security. Rate shown is as of report date.
(h)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty



   
Value
   
Unrealized
Appreciation

JPMorgan Chase & Co
        $ 8,591,250         $ 18,908   

(i)      
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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(j)      
All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expires on June 15, 2019, is $2,222,160.
(k)      
Investments in issuers considered to be an affiliate of the Trust during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate



   
Shares
Held at
April 30, 2012

   
Net
Activity

   
Shares
Held at
April 30, 2013

   
Income
FFI Institutional Tax-Exempt Fund
     
4,510,968
  
(35,431)
  
4,475,537
  
$934

(l)      
Represents the current yield as of report date.
     
Financial futures contracts as of April 30, 2013 were as follows:

Contracts
Sold



   
Issue

   
Exchange

   
Expiration

   
Notional
Value

   
Unrealized
Depreciation

(33)      
10-Year US Treasury Note
  
Chicago Board of Trade
  
June 2013
     $ 4,400,859         $ (1,590 )  
(54)      
30-Year US Treasury Bond
  
Chicago Board of Trade
  
June 2013
     $ 8,012,250            (270,080 )  
Total
     
 
  
 
  
 
                   $ (271,670 )  

See Notes to Financial Statements.

22 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (concluded)  BlackRock Investment Quality Municipal Trust Inc. (BKN)

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
        Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the 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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
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 and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument 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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
       
The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Investments:
                                                                                
Long-Term Investments1
                    $ 433,368,659                     $ 433,368,659   
Short-Term Securities
        $ 4,475,537                                    4,475,537   
Total
        $   4,475,537         $ 433,368,659                     $ 437,844,196   

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




   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                      
Liabilities:
                                                                                
Interest rate contracts
        $    (271,670 )                                $    (271,670 )  
 
                                                                          
2Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Cash pledged for financial futures contracts
        $ 206,000                                 $ 206,000   
Liabilities:
                                                                                
TOB trust certificates
                    $ (27,198,381 )                       (27,198,381 )  
VMTP Shares
                       (125,900,000 )                       (125,900,000 )  
Total
        $     206,000         $ (153,098,381 )                    $ (152,892,381 )  

There were no transfers between levels during the year ended April 30, 2013.

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 23
 
  
Schedule of Investments April 30, 2013 BlackRock Long-Term Municipal Advantage Trust (BTA)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Alabama — 0.3%
                                        
County of Jefferson Alabama Limited Obligation School, RB, Series A, 5.25%, 1/01/19
        $ 515          $ 514,835     
Arizona — 0.7%
                                        
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37
             1,090               1,222,926   
California — 5.3%
                                        
California Health Facilities Financing Authority, RB:
                                        
St. Joseph Health System, Series A, 5.75%, 7/01/39
           385             453,942   
Stanford Hospital and Clinics, Series A, 5.00%, 8/15/51
           410             458,405   
Sutter Health, Series B, 6.00%, 8/15/42
           1,040            1,286,532   
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39
           680             816,551   
California HFA, RB, Home Mortgage, Series K, AMT, 5.50%, 2/01/42
           400             414,160   
California Pollution Control Financing Authority, RB:
                                        
Poseidon Resources (Channel Side) LP Desalination, AMT, 5.00%, 7/01/37
           360             371,740   
San Diego County Water Authority Desalination Project Pipeline, 5.00%, 11/21/45
           440             454,841   
California State Public Works Board, RB, Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34
           400             496,520   
California Statewide Communities Development Authority, Refunding RB, Episcopal Communities & Services:
                                        
5.00%, 5/15/42
           250             272,372   
5.00%, 5/15/47
           125             135,886   
City of Los Angeles Department of Airports, Refunding RB, Senior Series A, 5.25%, 5/15/39
           270             313,424   
San Marcos Unified School District, GO, CAB, SAN, Election of 2010, Series B, 4.76%, 8/01/38 (a)
           3,725            1,135,566   
State of California, GO, Various Purpose, 6.50%, 4/01/33
           2,000            2,501,300   
 
                         9,111,239   
Colorado — 1.2%
                                        
Colorado Health Facilities Authority, Refunding RB, Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42
           315             337,548   
Colorado State Board of Governors, Refunding RB, Series A, 5.00%, 3/01/43
           415             530,581   
North Range Metropolitan District No. 2, GO, Limited Tax, 5.50%, 12/15/37
           1,200            1,213,572   
 
                         2,081,701   
Delaware — 1.2%
                                        
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40
           750             847,815   
Delaware State EDA, RB, Exempt Facilities, Indian River Power, 5.38%, 10/01/45
           1,165            1,249,835   
 
                         2,097,650   
District of Columbia — 4.4%
                                        
District of Columbia, RB, Methodist Home District of Columbia, Series A:
                                        
7.38%, 1/01/30
           550             558,046   
7.50%, 1/01/39
           500             506,710   
District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 6/01/41
           750             815,340   
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.25%, 5/15/24
           4,380            4,423,669   
Metropolitan Washington Airports Authority, Refunding RB, First Senior Lien, Series A:
                                        
5.00%, 10/01/39
           170             188,146   
5.25%, 10/01/44
           1,000            1,116,860   
 
                         7,608,771   
                     
Municipal Bonds          Par
(000)
     Value
Florida — 3.8%
                                        
Mid-Bay Bridge Authority, RB, Series A, 7.25%, 10/01/40
        $ 745          $ 950,307     
Sumter Landing Community Development District Florida, RB, Sub-Series B, 5.70%, 10/01/38
             1,355            1,277,033   
Tampa-Hillsborough County Expressway Authority, Refunding RB:
                                        
Series A, 5.00%, 7/01/37
           485             543,641   
Series B, 5.00%, 7/01/42
           890             991,683   
Tolomato Community Development District, Refunding, Special Assessment Bonds:
                                        
CAB, Series A-2, 6.78%, 5/01/17 (b)
           95             72,556   
CAB, Series A-3, 7.21%, 5/01/19 (b)
           225             140,625   
CAB, Series A-4, 7.71%, 5/01/22 (b)
           120             55,800   
Series A-1, 6.65%, 5/01/40
           355             364,326   
Tolomato Community Development District, Special Assessment Bonds (c)(d):
                                        
Series 1, 6.65%, 5/01/40
           25             13,505   
Series 2, 6.65%, 5/01/40
           815             326,513   
Series 3, 6.65%, 5/01/40
           275             3    
Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43
           880             903,232   
Watergrass Community Development District, Special Assessment Bonds, Series A, 5.38%, 5/01/39
           1,755            913,495   
 
                            6,552,719   
Guam — 0.1%
                                        
Territory of Guam, GO, Series A, 6.00%, 11/15/19
           200             221,244   
Illinois — 7.3%
                                        
Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39
           720             821,959   
Chicago Illinois Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40
           360             411,815   
City of Chicago Illinois, GARB, O’Hare International Airport, General Third Lien, Series A, 5.75%, 1/01/39
           2,500            2,937,825   
City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/34
           1,570            1,743,485   
City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A, 5.25%, 1/01/38
           280             322,000   
Illinois Finance Authority, RB, Advocate Health Care, Series C, 5.38%, 4/01/44
           1,845            2,114,370   
Illinois Finance Authority, Refunding RB:
                                        
Ascension Health, Series A, 5.00%, 11/15/37
           335             377,615   
Central DuPage Health, Series B, 5.50%, 11/01/39
           550             634,645   
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38 (e)
           815             921,659   
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:
                                        
Series B (AGM), 5.00%, 6/15/50
           1,095            1,182,294   
Series B-2, 5.00%, 6/15/50
           600             647,658   
Railsplitter Tobacco Settlement Authority, RB, 5.50%, 6/01/23
           180             220,000   
State of Illinois, RB, Build Illinois,
Series B, 5.25%, 6/15/34
           215             247,456   
 
                         12,582,781   
Indiana — 3.1%
                                        
Carmel Redevelopment Authority, Refunding RB, Series A:
                                        
4.00%, 8/01/35
           400             419,872   
4.00%, 8/01/38
           645             674,431   
Indiana Finance Authority, RB:
                                        
Private Activity, Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/44
           160             169,816   
Private Activity, Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/48
           520             545,329   
Sisters of St. Francis Health, 5.25%, 11/01/39
           290             328,837   

See Notes to Financial Statements.

24 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (continued)  BlackRock Long-Term Municipal Advantage Trust (BTA)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Indiana (concluded)
                                        
Indiana Finance Authority, RB (concluded):
                                        
Wastewater Utility (CWA Authority Project), First Lien, Series A, 5.25%, 10/01/38
        $ 540          $ 629,359     
Indiana Finance Authority, Refunding RB, Series A:
                                        
Community Health Network Project, 5.00%, 5/01/42
           665             735,557   
Parkview Health System, 5.75%, 5/01/31
           600             692,874   
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39
           350             415,790   
Indianapolis Local Public Improvement Bond Bank, RB, Series A (e):
                                        
5.00%, 1/15/36
           140             159,251   
5.00%, 1/15/40
           445             501,079   
 
                         5,272,195   
Iowa — 0.6%
                                        
Iowa Student Loan Liquidity Corp., Refunding RB, Series A-1, AMT, 5.15%, 12/01/22
           975             1,128,787   
Louisiana — 2.1%
                                        
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Projects:
                                        
Series A-1, 6.50%, 11/01/35
             1,135               1,361,296   
6.75%, 11/01/32
           2,000            2,285,620   
 
                         3,646,916   
Maine — 0.9%
                                        
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 7/01/41
           970             1,173,836   
Maine State Turnpike Authority, RB, 5.00%, 7/01/42
           310             356,419   
 
                         1,530,255   
Maryland — 1.3%
                                        
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35
           970             1,106,217   
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25
           1,000            1,116,650   
 
                         2,222,867   
Massachusetts — 0.8%
                                        
Massachusetts Development Finance Agency, RB, Wellesley College, Series J, 5.00%, 7/01/42
           630             731,424   
Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare, Series J1, 5.00%, 7/01/39
           615             684,267   
 
                         1,415,691   
Michigan — 2.4%
                                        
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series B (AGM), 7.50%, 7/01/33
           560             693,812   
City of Detroit Michigan Water Supply System, RB, Senior Lien, Series A, 5.25%, 7/01/41
           1,500            1,626,225   
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39
           1,400            1,793,638   
 
                         4,113,675   
Nebraska — 0.2%
                                        
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37
           285             318,613   
New Jersey — 1.1%
                                        
New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 6.40%, 9/15/23
           525             551,492   
New Jersey State Turnpike Authority, RB, Series A:
                                        
5.00%, 1/01/38
           455             510,014   
5.00%, 1/01/43
           700             779,394   
 
                         1,840,900   
                     
Municipal Bonds          Par
(000)
     Value
New York — 5.3%
                                        
Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.25%, 11/15/40
        $ 410          $ 463,866     
New York City Industrial Development Agency, RB, AMT:
                                        
American Airlines, Inc., JFK International Airport, 7.63%, 8/01/25 (c)(d)(f)
           4,000            4,566,440   
British Airways Place Project, 7.63%, 12/01/32
           1,000            1,019,980   
New York City Transitional Finance Authority, RB, Sub-Series E, 5.00%, 2/01/42
           850             968,736   
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49
           420             502,148   
New York State Dormitory Authority, RB, New York University, Series A, 5.25%, 7/01/48
           1,000            1,148,250   
Port Authority of New York & New Jersey, RB, JFK International Air Terminal, 6.00%, 12/01/42
           430             503,470   
 
                         9,172,890   
North Carolina — 0.3%
                                        
North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/42
           480             535,450   
Ohio — 1.8%
                                        
Buckeye Tobacco Settlement Financing Authority, RB, Tobacco Settlement Asset-Backed Bonds, Series A-2, 5.75%, 6/01/34
             2,295               2,003,833   
State of Ohio, RB, Ford Motor Co. Project, AMT, 5.75%, 4/01/35
           1,000            1,037,800   
 
                         3,041,633   
Oregon — 0.1%
                                        
City of Tigard Washington County Oregon, Refunding RB, Water System, 5.00%, 8/01/37
           90             104,130   
Puerto Rico — 3.3%
                                        
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.50%, 8/01/44
           1,705            1,933,572   
Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB (a):
                                        
First Sub-Series C, 5.84%, 8/01/38
           1,490            348,243   
Series A (NPFGC), 5.73%, 8/01/46
           9,600            1,466,016   
Series C, 5.54%, 8/01/39
           8,540            2,034,228   
 
                         5,782,059   
South Dakota — 0.2%
                                        
South Dakota Health and Educational Facilities Authority, RB, (Sanford), Series E, 5.00%, 11/01/42
           375             415,343   
Tennessee — 0.00%
                                        
Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47
           75             84,959   
Texas — 7.0%
                                        
Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30
           1,500            133,140   
Central Texas Regional Mobility Authority, Refunding RB:
                                        
Senior Lien, 6.25%, 1/01/46
           730             862,349   
Senior Lien, Series A, 5.00%, 1/01/33 (e)
           35             38,579   
Senior Lien, Series A, 5.00%, 1/01/43 (e)
           65             70,166   
Sub Lien, 5.00%, 1/01/33 (e)
           125             132,566   
Sub Lien, 5.00%, 1/01/42 (e)
           110             114,442   
City of Dallas Texas, Refunding RB, Waterworks & Sewer System, 5.00%, 10/01/35
           525             601,503   
City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39
           250             288,250   
HFDC of Central Texas, Inc., RB, Village at Gleannloch Farms, Series A, 5.50%, 2/15/27
           1,150            1,162,823   
Houston Higher Education Finance Corp., RB, Cosmos Foundation, Inc. Series A, 6.88%, 5/15/41
           200             253,370   
Matagorda County Navigation District No. 1 Texas, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29
           700             825,601   

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 25
 
  
Schedule of Investments (continued)  BlackRock Long-Term Municipal Advantage Trust (BTA)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Texas (concluded)
                                        
Midland County Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 4.51%, 9/15/37 (a)
        $   5,200         $ 1,753,336     
North Texas Tollway Authority, Refunding RB, Toll, Second Tier, Series F, 6.13%, 1/01/31
           2,290            2,528,618   
Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45
           1,390            1,666,249   
Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare, 5.00%, 8/15/43
           125             139,136   
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            1,223,640   
University of Texas System, Refunding RB, Financing System, Series B, 5.00%, 8/15/43
           170             198,587   
 
                         11,992,355   
Utah — 1.1%
                                        
County of Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43
           710             800,511   
Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy:
                                        
3.25%, 10/15/36
           700             657,300   
3.25%, 10/15/42
           425             386,533   
 
                         1,844,344   
Virginia — 3.2%
                                        
Peninsula Ports Authority, Refunding RB, Virginia Baptist Homes, Series C, 5.38%, 12/01/26
           1,600            1,565,984   
Route 460 Funding Corp. of Virginia Toll Road, RB, Senior Lien, Series A, 5.13%, 7/01/49
           435             471,092   
Virginia HDA, RB, Rental Housing,
Series F, 5.00%, 4/01/45
           1,000            1,074,830   
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings Project, AMT:
                                        
5.25%, 1/01/32
           275             302,483   
6.00%, 1/01/37
           1,500            1,726,920   
5.50%, 1/01/42
           400             435,400   
 
                         5,576,709   
Wisconsin — 2.6%
                                        
Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Credit Group, Series A, 5.00%, 11/15/31
           2,835            3,133,214   
WPPI Energy Wisconsin, Refunding RB, Power Supply System, Series A:
                                        
5.00%, 7/01/29
           135             157,349   
5.00%, 7/01/30
           170             197,178   
5.00%, 7/01/31
           365             422,319   
5.00%, 7/01/37
           445             503,718   
 
                         4,413,778   
Wyoming — 0.1%
                                        
Wyoming Municipal Power Agency, RB, Series A, 5.00%, 1/01/42
           100             108,397   
Total Municipal Bonds — 61.8%
                         106,555,812   

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
Arizona — 0.5%
                                        
Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/38
           820             925,929   
California — 13.8%
                                        
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/44
           1,090            1,259,635   
                     
Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
         Par
(000)
     Value
California (concluded)
                                        
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%,
10/01/39 (h)
        $ 840          $ 976,021     
City of Los Angeles California Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, 5.00%, 5/15/40
           2,040            2,304,109   
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33
           553             662,548   
San Francisco City & County Public Utilities Commission, RB, Series B, 5.00%, 11/01/39
           3,225            3,657,505   
University of California, RB, Series B (NPFGC), 4.75%, 5/15/38
            14,500              14,844,665   
 
                         23,704,483   
Colorado — 3.0%
                                        
Colorado Health Facilities Authority, Refunding RB:
                                        
Catholic Health, Series A, 5.50%, 7/01/34 (h)
           740             863,206   
Sisters of Leavenworth,
Series A, 5.00%, 1/01/40
           3,930            4,289,988   
 
                         5,153,194   
Florida — 1.3%
                                        
County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34
           1,950            2,201,806   
Illinois — 6.9%
                                        
City of Chicago Illinois, RB, O’Hare International, Third Lien, Series A (NPFGC), 5.00%, 1/01/33
           4,995            5,374,370   
City of Chicago Illinois Waterworks, Refunding RB, 5.00%, 11/01/42
           3,299            3,735,555   
Illinois Finance Authority, RB, Carle Foundation, Series A (AGM), 6.00%, 8/15/41
           2,340            2,761,411   
 
                         11,871,336   
Indiana — 7.5%
                                        
Carmel Redevelopment Authority, RB, Performing Arts Center:
                                        
4.75%, 2/01/33
           5,365            5,803,964   
5.00%, 2/01/33
           6,580            7,158,711   
 
                         12,962,675   
Maryland — 0.9%
                                        
Maryland Health & Higher Educational Facilities Authority, RB, Ascension Health, Series B, 5.00%, 11/15/51
           1,440            1,610,640   
Massachusetts — 4.0%
                                        
Massachusetts HFA, Refunding HRB, Series D, AMT, 5.45%, 6/01/37
           5,090            5,172,147   
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41
           1,560            1,800,349   
 
                         6,972,496   
Michigan — 0.7%
                                        
Detroit Water and Sewerage Department, Refunding RB, Senior Lien, Series A:
                                        
5.00%, 7/01/32
           550             600,670   
5.25%, 7/01/39
           475             518,048   
 
                         1,118,718   
Nebraska — 3.1%
                                        
Omaha Public Power District, RB, System, Sub-Series B (NPFGC), 4.75%, 2/01/36 (h)
           5,000            5,409,100   
New Hampshire — 0.5%
                                        
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (h)
           660             772,066   
New Jersey — 0.6%
                                        
New Jersey Transportation Trust Fund Authority, RB, Transportation, Series B, 5.25%, 6/15/36 (h)
           860             982,584   

See Notes to Financial Statements.

26 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (continued)  BlackRock Long-Term Municipal Advantage Trust (BTA)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
         Par
(000)
     Value
New York — 26.5%
                                        
Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47
        $ 1,510         $ 1,792,590     
New York City Municipal Water Finance Authority, Refunding RB:
                                        
Second General Resolution, Series CC, 5.00%, 6/15/47
           4,780            5,464,878   
Second General Resolution, Series HH, 5.00%,
6/15/31 (h)
           2,835            3,291,638   
Series D, 5.00%, 6/15/39 (h)
           7,500            8,084,475   
Series FF-2, 5.50%, 6/15/40
           495             584,072   
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43
           6,135            7,046,074   
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51
           2,220            2,632,831   
New York State Dormitory Authority, ERB:
                                        
Series B, 5.75%, 3/15/36
           11,250            13,528,800   
Series F, 5.00%, 3/15/35
           3,000            3,211,391   
 
                         45,636,749   
North Carolina — 9.6%
                                        
University of North Carolina at Chapel Hill, Refunding RB, General, Series A, 4.75%, 12/01/34
            15,170              16,491,116   
Ohio — 4.8%
                                        
County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38
           2,650            2,975,844   
State of Ohio, Refunding RB, Cleveland Clinic Health, Series A, 5.50%, 1/01/39
           4,634            5,359,447   
 
                         8,335,291   
South Carolina — 1.5%
                                        
South Carolina State Housing Finance & Development Authority, Refunding RB, Series B-1, 5.55%, 7/01/39
           2,399            2,584,567   
                     
Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
         Par
(000)
     Value
Texas — 8.0%
                                        
County of Harris Texas, RB, Senior Lien, Toll Road, Series A, 5.00%, 8/15/38 (h)
        $ 2,130         $ 2,432,822   
Harris County Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41
           1,170            1,329,424   
New Caney ISD, GO, School Building (PSF-GTD), 5.00%, 2/15/35 (h)
           9,150            10,065,458   
 
                         13,827,704   
Utah — 0.6%
                                        
City of Riverton Utah Hospital, RB, IHC Health Services, Inc., 5.00%, 8/15/41
           960             1,079,245   
Virginia — 0.6%
                                        
Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40
           1,000            1,109,837   
Wisconsin — 1.3%
                                        
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., 5.25%, 4/01/39 (h)
           1,990            2,207,852   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 95.7%
                         164,957,388   
Total Long-Term Investments
                                        
(Cost — $252,196,539) — 157.5%
                         271,513,200   

Short-Term Securities
           Shares                  
FFI Institutional Tax-Exempt Fund, 0.03% (i)(j)
           920,424            920,424   
Total Short-Term Securities
                                        
(Cost — $920,424) — 0.5%
                         920,424   
Total Investments (Cost — $253,116,963) — 158.0%
                         272,433,624   
Other Assets Less Liabilities — 0.9%
                         1,598,324   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (58.9)%
                         (101,604,042 )  
Net Assets — 100.0%
                      $ 172,427,906   

Notes to Schedule of Investments

(a)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b)      
Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.
(c)      
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(d)      
Non-income producing security.
(e)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty



   
Value
   
Unrealized
Appreciation

First Clearing LLC
        $ 660,330         $ 5,273   
JPMorgan Chase & Co
        $ 1,277,412         $ 15,391   

(f)      
Variable rate security. Rate shown is as of report date.
(g)      
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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(h)      
All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from June 15, 2013 to February 15, 2031, is $22,744,362.
(i)      
Investments in issuers considered to be an affiliate of the Trust during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate



   
Shares
Held at
April 30, 2012

   
Net
Activity

   
Shares
Held at
April 30, 2013

   
Income
   
FFI Institutional Tax-Exempt Fund
     
3,415,500
  
(2,495,076)
  
920,424
  
$266
                 

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 27
 
  
Schedule of Investments (concluded)  BlackRock Long-Term Municipal Advantage Trust (BTA)
(j)Represents the current yield as of report date.
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 statement purposes as follows:
        Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the 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 Trust’s own assumptions used in determining the fair value of investments)

       
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 level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
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 Note 1 of the Notes to Financial Statements.
       
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of April 30, 2013:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Investments:
                                                                                
Long-Term Investments1
                    $ 271,513,200                     $ 271,513,200   
Short-Term Securities
        $ 920,424                                    920,424   
Total
        $     920,424         $  271,513,200                     $  272,433,624   
1See above Schedule of Investments for values in each state or political subdivision.

       
Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Cash
        $     655,075                                 $ 655,075   
Liabilities:
                                                
TOB trust certificates
                    $ (101,512,870 )                       (101,512,870 )  
Total
        $ 655,075         $ (101,512,870 )                    $ (100,857,795 )  

       
There were no transfers between levels during the year ended April 30, 2013.

See Notes to Financial Statements.

28 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments April 30, 2013 BlackRock Municipal 2020 Term Trust (BKK)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Alabama — 0.7%
                                        
Alabama State 21st Century Authority Tobacco Settlement, RB, Series A, 5.00%, 6/01/20
        $     1,000         $ 1,210,440     
Courtland IDB Alabama, Refunding RB, International Paper Co. Projects, Series A, 4.75%, 5/01/17
           1,165            1,215,375   
 
                         2,425,815   
Alaska — 2.0%
                                        
City of Valdez Alaska, Refunding RB, BP Pipelines Project:
                                        
Series B, 5.00%, 1/01/21
           3,200            3,915,008   
Series C, 5.00%, 1/01/21
           2,500            3,058,600   
 
                         6,973,608   
Arizona — 3.3%
                                        
Phoenix Civic Improvement Corp., RB, Junior Lien, Series A:
                                        
5.00%, 7/01/20
           1,300            1,594,801   
5.00%, 7/01/21
           5,585            6,800,631   
Salt Verde Financial Corp., RB, Senior:
                                        
5.00%, 12/01/18
           1,500            1,708,065   
5.25%, 12/01/20
           1,000            1,161,520   
 
                         11,265,017   
California — 20.2%
                                        
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.00%, 8/15/22
           815             980,885   
California State Department of Water Resources, Refunding RB, Series L, 5.00%, 5/01/20
           10,000            12,578,200   
California Statewide Communities Development Authority, RB, John Muir Health, Series A, 5.00%, 8/15/22
           5,000            5,586,550   
Foothill Eastern Transportation Corridor Agency California, Refunding RB, CAB (a):
                                        
5.93%, 1/15/21
            12,500            7,966,250   
5.95%, 1/15/22
           10,000            5,997,800   
Golden State Tobacco Securitization Corp. California, RB (b):
                                        
ARS, Series A-3, 7.88%, 6/01/13
           975             981,338   
Series 2003-A-1, 6.63%, 6/01/13
           1,500            1,508,190   
Series 2003-A-1, 6.75%, 6/01/13
           11,010            11,071,326   
Los Angeles Regional Airports Improvement Corp. Facilities Lease, Refunding RB, LAXFuel Corp. (Los Angeles International Airport):
                                        
5.00%, 1/01/19
           540             637,832   
5.00%, 1/01/20
           550             655,556   
Los Angeles Unified School District California, GO, Series I, 5.00%, 7/01/20
           3,750            4,618,762   
Riverside County Asset Leasing Corp. California, RB, Riverside County Hospital Project (NPFGC), 4.92%, 6/01/25 (a)
           6,865            3,814,125   
San Manuel Entertainment Authority, Series 04-C, 4.50%, 12/01/16 (c)
           4,000            4,126,760   
State of California, GO, Various Purpose, 5.00%, 11/01/13 (b)
           7,050            7,219,129   
State of California, GO, Refunding, Various Purpose, 5.25%, 10/01/22
           1,000            1,272,820   
 
                           69,015,523   
Colorado — 1.3%
                                        
Colorado Health Facilities Authority, RB, Evangelical Lutheran Good Samaritan Society Project:
                                        
4.00%, 12/01/19
           555             614,013   
4.00%, 12/01/20
           580             639,270   
E-470 Public Highway Authority Colorado, RB, CAB, Senior Series B (NPFGC), 3.74%, 9/01/22 (a)
           4,500            3,183,930   
 
                         4,437,213   
District of Columbia — 1.6%
                                        
Metropolitan Washington Airports Authority, Refunding RB, Series C-2, AMT (AGM), 5.00%, 10/01/24
           5,000            5,274,600   
                     
Municipal Bonds          Par
(000)
     Value
Florida — 7.8%
                                        
Broward County Florida Airport System Revenue, Refunding RB, Series P-1, AMT, 4.00%, 10/01/19
        $ 1,750         $ 1,999,217     
Broward County School Board Florida, COP, Series A (AGM), 5.25%, 7/01/22
           1,250            1,452,625   
City of Jacksonville Florida, RB, Better Jacksonville, 5.00%, 10/01/22
           5,160            6,086,684   
Florida State Board of Education, GO, Refunding, Series B, 5.00%, 6/01/20
           5,000            6,245,900   
Habitat Community Development District, Special Assessment Bonds, 5.80%, 5/01/25
           1,720            1,773,716   
Miami Beach Health Facilities Authority, RB, Mount Sinai Medical Center of Florida, 6.75%, 11/15/21
           2,005            2,168,668   
Miami-Dade County Expressway Authority, Refunding RB, Toll System, Series A, 5.00%, 7/01/20
           500             605,850   
Miami-Dade County Florida, Refunding RB, Series A, AMT, 5.00%, 10/01/20
           1,375            1,653,355   
Pine Island Community Development District, RB, 5.30%, 11/01/10
           250             100,123   
Stevens Plantation Community Development District, Special Assessment Bonds, Series B, 6.38%, 12/31/49 (d)(e)
           3,530            2,647,571   
Village Community Development District No. 5 Florida, Special Assessment Bonds, Series A, 6.00%, 5/01/22 (b)
           1,750            1,767,780   
 
                         26,501,489   
Georgia — 2.4%
                                        
Gainesville & Hall County Development Authority, Refunding RB, ACTS Retirement — Life Communities, Inc. Obligated Group, 5.00%, 11/15/22
           6,915            8,092,486   
Guam — 0.4%
                                        
Guam Power Authority, Refunding RB, Series A, 5.00%, 10/01/20
           1,190            1,441,614   
Hawaii — 0.9%
                                        
Hawaii State Department of Budget & Finance, Refunding RB, Special Purpose Senior Living, Kahala Nui:
                                        
5.00%, 11/15/19
           1,275            1,446,488   
5.00%, 11/15/20
           1,440            1,632,312   
 
                         3,078,800   
Illinois — 13.7%
                                        
City of Chicago Illinois, O’Hare International Airport, GARB, Third Lien, Series A (AMBAC):
                                        
5.00%, 1/01/21
           5,000            5,505,950   
5.00%, 1/01/22
           7,000            7,743,470   
Illinois Finance Authority, RB, Northwestern University, 5.00%, 12/01/21
           4,800            4,930,896   
Illinois State Toll Highway Authority, RB, Senior Priority, Series A (AGM), 5.00%, 1/01/19
           2,250            2,471,287   
Lake Cook-Dane & McHenry Counties Community Unit School District 220 Illinois, GO, Refunding (AGM), 5.25%, 12/01/20
           1,000            1,273,120   
Metropolitan Pier & Exposition Authority Illinois, Refunding RB, CAB, McCormick, Series A (NPFGC), 2.90%, 6/15/22 (a)
              13,455              10,342,186   
Railsplitter Tobacco Settlement Authority, RB, 5.25%, 6/01/20
           10,000            12,135,300   
State of Illinois, RB, Build Illinois,
Series B, 5.00%, 6/15/20
           2,000            2,415,720   
 
                         46,817,929   
Indiana — 5.0%
                                        
City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village, 6.25%, 1/01/24
           3,765            2,327,523   
Indiana Finance Authority, RB, Private Activity, Ohio River Bridges East End Crossing Project, Series B, AMT, 5.00%, 1/01/19
           2,465            2,742,879   
Indiana Municipal Power Agency, Series A, 5.00%, 1/01/21
           600             735,024   

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 29
 
  
Schedule of Investments (continued)  BlackRock Municipal 2020 Term Trust (BKK)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Indiana (concluded)
                                        
Indianapolis Airport Authority, Refunding RB, Special Facilities, FedEx Corp. Project, AMT, 5.10%, 1/15/17
        $    10,000         $   11,326,100     
 
                         17,131,526   
Kansas — 2.3%
                                        
Kansas Development Finance Authority, Refunding RB, Adventist Health, 5.25%, 11/15/20
           2,500            3,045,075   
Wyandotte County, Kansas City Unified Government, RB, Kansas International Speedway (NPFGC), 4.44%, 12/01/20 (a)
           6,440            4,616,772   
 
                         7,661,847   
Kentucky — 1.8%
                                        
Kentucky Housing Corp., RB, Series C, AMT, 4.63%, 7/01/22
           2,000            2,091,940   
Louisville & Jefferson County, RB, Metro Government Catholic Health Initiatives, Series A:
                                        
3.50%, 12/01/20
           2,115            2,374,447   
5.00%, 12/01/20
           1,430            1,757,084   
 
                         6,223,471   
Louisiana — 0.6%
                                        
Parish of DeSoto Louisiana, RB, Series A, AMT, 5.85%, 11/01/27
           2,000            2,047,200   
Maryland — 2.1%
                                        
Anne Arundel County Consolidated, Special Taxing District, Special Tax Bonds, The Villages of Dorchester and Farmington Village Project:
                                        
4.00%, 7/01/19
           285             321,104   
5.00%, 7/01/20
           500             597,690   
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.13%, 6/01/20
           1,250            1,452,587   
Maryland Health & Higher Educational Facilities Authority, Refunding RB:
                                        
Charlestown Community, 5.50%, 1/01/21
           1,335            1,561,082   
University of Maryland, Medical System, 5.00%, 7/01/19
           670             797,890   
Maryland State and Local Facilities Loan, GO, Series B, 5.00%, 3/15/20
           2,000            2,513,220   
 
                         7,243,573   
Massachusetts — 1.4%
                                        
Massachusetts Development Finance Agency, RB, Waste Management, Inc. Project, AMT, 5.45%, 6/01/14
           4,500            4,723,290   
Massachusetts State Water Pollution Abatement, Refunding RB, MWRA Program, Sub-Series A, 6.00%, 8/01/23
           140             140,664   
 
                         4,863,954   
Michigan — 2.4%
                                        
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.00%, 5/15/20
           1,585            1,835,271   
Lansing Board of Water & Light Utilities, RB, Series A, 3.50%, 7/01/20
           1,000            1,119,220   
Michigan State Building Authority, Refunding RB, Facilities Program:
                                        
Series 1-A, 5.00%, 10/15/20
           325             393,390   
Series 2-A, 4.00%, 10/15/20
           1,205            1,375,315   
State of Michigan, Refunding RB:
                                        
5.00%, 11/01/20
           1,000            1,214,550   
5.00%, 11/01/21
           2,000            2,403,740   
 
                         8,341,486   
Minnesota — 6.0%
                                        
Minnesota Higher Education Facilities Authority, RB, University of St. Thomas, Series 5-Y, 5.00%, 10/01/24
           1,250            1,328,538   
Minnesota State Trunk Highway, GO, Series B, 5.00%, 10/01/20
           15,000            18,985,800   
 
                         20,314,338   
                     
Municipal Bonds          Par
(000)
     Value
Missouri — 3.5%
                                        
Missouri Development Finance Board, RB, Branson Landing Project, Series A, 5.50%, 6/01/14 (b)
        $     5,000         $    5,278,150     
Missouri State Health & Educational Facilities Authority, RB, Coxhealth, Series A, 5.00%, 11/15/20
           500             601,515   
Missouri State Health & Educational Facilities Authority, Refunding RB, BJC Health System, Series A, 5.00%, 5/15/20
           5,500            5,994,670   
 
                         11,874,335   
Multi-State — 4.6%
                                        
Centerline Equity Issuer Trust (c):
                                        
5.75%, 5/15/15
           1,000            1,081,370   
6.00%, 5/15/15
           4,000            4,343,040   
6.00%, 5/15/19
           2,500            2,968,300   
6.30%, 5/15/19
           2,500            3,005,200   
MuniMae TE Bond Subsidiary LLC, 5.80% (c)(f)
           5,000            4,200,100   
 
                         15,598,010   
Nebraska — 1.2%
                                        
Central Plains Energy Project, RB, Gas Project No. 3, 5.00%, 9/01/20
           3,500            4,070,115   
Nevada — 2.6%
                                        
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/20
           5,000            5,518,050   
County of Clark Nevada, Special Assessment Bonds, Special Improvement District No. 142, 5.00%, 8/01/20
           1,530            1,664,150   
County of Clark Nevada Airport System Revenue, Refunding ARB, Las Vegas McCarran International Airport, Series B:
                                        
5.00%, 7/01/19
           500             595,770   
5.00%, 7/01/20
           1,000            1,199,430   
 
                         8,977,400   
New Hampshire — 2.6%
                                        
New Hampshire Business Finance Authority, Refunding RB, Public Service Co. of New Hampshire Project, Series B, AMT (NPFGC), 4.75%, 5/01/21
           4,350            4,462,665   
New Hampshire Health & Education Facilities Authority, Refunding RB, Elliot Hospital, Series B, 5.60%, 10/01/22
           3,935            4,232,683   
 
                         8,695,348   
New Jersey — 5.2%
                                        
Middlesex County Improvement Authority, RB, George Street Student Housing Project, Series A, 5.00%, 8/15/14 (b)
           1,000            1,059,230   
New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 9.00%, 6/01/33 (g)
           1,500            1,544,970   
New Jersey EDA, Refunding RB:
                                        
Cigarette Tax, 5.00%, 6/15/20
           2,500            2,959,550   
First Mortgage, Winchester, Series A, 4.80%, 11/01/13
           265             268,045   
School Facilities, Series GG, 5.00%, 9/01/22
           2,000            2,414,300   
New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B, 6.25%, 12/01/18
           2,500            3,025,275   
New Jersey Health Care Facilities Financing Authority, Refunding RB:
                                        
AtlantiCare Regional Medical Center, 5.00%, 7/01/20
           2,110            2,353,009   
Capital Health System Obligation Group, Series A, 5.75%, 7/01/13 (b)
           4,000            4,036,960   
 
                         17,661,339   
New York — 9.2%
                                        
New York City Industrial Development Agency, RB, American Airlines, Inc., JFK International Airport, AMT (d)(e)(g):
                                        
7.63%, 8/01/25
           3,885            4,435,155   

See Notes to Financial Statements.

30 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (continued)  BlackRock Municipal 2020 Term Trust (BKK)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
New York (concluded)
                                        
New York City Industrial Development Agency, RB, American Airlines, Inc., JFK International Airport, AMT (d)(e)(g) (concluded):
                                        
7.75%, 8/01/31
        $     5,000         $    5,743,900     
New York Mortgage Agency, RB, 35th Series, AMT, 4.50%, 10/01/20
           4,000            4,173,600   
New York State Energy Research & Development Authority, Refunding RB, Brooklyn Union Gas/Keyspan, Series A, AMT (NPFGC), 4.70%, 2/01/24
           8,500            9,182,890   
New York State Thruway Authority, RB, General, Series I, 5.00%, 1/01/20
           875             1,074,894   
Port Authority of New York & New Jersey, RB, JFK International Air Terminal, 5.00%, 12/01/20
           1,525            1,753,963   
Tobacco Settlement Financing Corp. New York, RB, Series B-1C, 5.50%, 6/01/20
           5,000            5,022,450   
 
                         31,386,852   
North Carolina — 2.3%
                                        
North Carolina Eastern Municipal Power Agency, Refunding RB, Series B, 5.00%, 1/01/21
           1,550            1,827,140   
North Carolina Municipal Power Agency No. 1, Refunding RB, Series B, 5.00%, 1/01/20
           5,000            6,103,050   
 
                         7,930,190   
Ohio — 3.9%
                                        
Cuyahoga County, RB, Cleveland Clinic Health System, Series A (b):
                                        
6.00%, 7/01/13
           1,530            1,544,917   
6.00%, 7/01/13
           1,470            1,484,333   
6.00%, 7/01/13
           5,100            5,149,725   
6.00%, 7/01/13
           4,900            4,947,775   
 
                         13,126,750   
Oklahoma — 1.0%
                                        
Canadian County Educational Facilities Authority, RB, Mustang Public Schools Project, 4.50%, 9/01/20
           1,500            1,730,280   
Oklahoma County Finance Authority, Refunding RB, Epworth Villa Project, Series A:
                                        
2.25%, 4/01/14
           225             224,714   
2.50%, 4/01/15
           225             224,370   
Tulsa County Industrial Authority Education Facilities, RB, Broken Arrow Public School, 4.00%, 9/01/22
           1,100            1,228,502   
 
                         3,407,866   
Pennsylvania — 6.1%
                                        
Lancaster County Hospital Authority, RB, General Hospital Project, 5.75%, 9/15/13 (b)
           7,500            7,654,575   
Pennsylvania Economic Development Financing Authority, Refunding RB, Amtrak Project, Series A, AMT, 4.00%, 11/01/20
           2,175            2,398,177   
Pennsylvania Higher Educational Facilities Authority, RB, Shippensburg University Student Services:
                                        
4.00%, 10/01/19
           1,165            1,256,545   
4.00%, 10/01/20
           1,210            1,301,609   
Pennsylvania Higher Educational Facilities Authority, Refunding RB, Drexel University, Series A, 5.00%, 5/01/20
           1,575            1,889,575   
Pennsylvania Housing Finance Agency, RB, S/F Mortgage, Series 115A, AMT (h):
                                        
2.30%, 10/01/19
           460             461,706   
2.55%, 4/01/20
           850             852,006   
2.65%, 10/01/20
           865             868,616   
Pennsylvania IDA, Refunding RB, Economic Development, 5.00%, 7/01/20
           1,500            1,824,300   
Pennsylvania Turnpike Commission, RB, Sub-Series A (AGC), 5.00%, 6/01/22
           1,000            1,162,750   
State Public School Building Authority, RB, Community College Allegheny County Project (AGM), 5.00%, 7/15/20
           995             1,186,279   
 
                         20,856,138   
                     
Municipal Bonds          Par
(000)
     Value
Puerto Rico — 3.0%
                                        
Puerto Rico Electric Power Authority, RB, Series NN, 5.13%, 7/01/13 (b)
        $     9,000         $    9,074,880     
Puerto Rico Sales Tax Financing Corp., Refunding RB, Sales Tax, Series C, 5.00%, 8/01/22
           1,100            1,303,896   
 
                         10,378,776   
Rhode Island — 0.7%
                                        
Rhode Island Student Loan Authority, RB, Student Loan Program, Senior Series A, AMT, 5.00%, 12/01/20
           2,000            2,321,620   
South Carolina — 0.7%
                                        
South Carolina State Ports Authority, RB, 5.00%, 7/01/20
           2,000            2,430,900   
Texas — 12.7%
                                        
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien:
                                        
5.75%, 1/01/19
           800             956,224   
5.75%, 1/01/20
           1,140            1,383,424   
City of Dallas Texas, Refunding RB (AGC), 5.00%, 8/15/21
           2,500            2,909,000   
City of Frisco Texas, GO, Refunding, 3.00%, 2/15/20
           2,250            2,482,470   
City of Houston Texas, Refunding RB, Subortinate Lien, Series B, 5.00%, 7/01/20
           250             303,488   
Love Field Airport Modernization Corp., RB, Southwest Airlines Co., Love Field Modernization Porgram Project, 5.00%, 11/01/20
           3,715            4,189,591   
Lower Colorado River Authority, Refunding RB, LCRA Transmission Corporation Project, Series B, 5.00%, 5/15/20
           5,000            6,119,300   
North Texas Tollway Authority, Refunding RB, Series C:
                                        
5.25%, 1/01/20
           1,000            1,189,880   
5.38%, 1/01/21
           5,000            5,980,050   
Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/20
           5,000            5,705,400   
Texas State Turnpike Authority, RB, CAB, First Tier, Series A (AMBAC) (a):
                                        
2.99%, 8/15/21
           7,990            6,244,744   
3.56%, 8/15/24
           8,450            5,673,837   
 
                         43,137,408   
US Virgin Islands — 0.3%
                                        
Virgin Islands Public Finance Authority, RB, Senior Lien, Matching Fund Loan Note, Series A, 5.25%, 10/01/17
           1,000            1,053,180   
Virginia — 5.1%
                                        
Charles City County EDA, RB, Waste Management, Inc. Project, Mandatory Put Bonds, AMT, 5.13%, 5/01/14 (i)
           10,000            10,456,400   
Hanover County Economic Development Authority, Refunding RB, Covenant Woods, Series A, 3.00%, 7/01/15
           465             472,235   
Norfolk Virginia Water Revenue, Refunding RB, 5.00%, 11/01/20
           2,000            2,515,360   
Roanoke EDA, RB, Carilion Clinic Obligation Group, 5.00%, 7/01/20
           1,500            1,802,475   
Russell County IDA, Refunding RB, Appalachian Power, Series K, 4.63%, 11/01/21
           2,000            2,205,500   
 
                         17,451,970   
Washington — 1.5%
                                        
Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series B:
                                        
5.00%, 10/01/20
           250             305,618   
5.00%, 10/01/42 (g)
           4,000            4,834,240   
 
                         5,139,858   
Wisconsin — 2.7%
                                        
State of Wisconsin, Refunding RB, Series A, 5.25%, 5/01/20
           1,000            1,218,800   

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 31
 
  
Schedule of Investments (continued)  BlackRock Municipal 2020 Term Trust (BKK)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Wisconsin (concluded)
                                        
Wisconsin Health & Educational Facilities Authority, Refunding RB:
                                        
Froedtert & Community Health, Inc., 5.00%, 4/01/20
        $     1,515         $ 1,802,441     
Wheaton Franciscan Services, Series A, 5.50%, 8/15/17
           2,880            2,921,645   
Wheaton Franciscan Services, Series A, 5.50%, 8/15/18
           3,190            3,235,170   
 
                         9,178,056   
Total Municipal Bonds — 144.8%
                          493,827,600   

Municipal Bonds Transferred to
Tender Option Bond Trusts (j)
          
 
Illinois — 1.7%
                                        
City of Chicago Illinois, Refunding RB, Second Lien (AGM), 5.00%, 11/01/20
               5,000            5,836,950   
Total Long-Term Investments
                                        
(Cost — $464,876,318) — 146.5%
                         499,664,550   
    
Short-Term Securities



   
Shares

   
Value

FFI Institutional Tax-Exempt Fund, 0.03% (k)(l)
           1,959,251         $ 1,959,251   
Total Short-Term Securities
                                        
(Cost — $1,959,251) — 0.6%
                         1,959,251   
Total Investments (Cost — $466,835,569) — 147.1%
     501,623,801   
Other Assets Less Liabilities — 1.3%
                         4,369,748   
Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (1.1)%
     (3,753,310 )  
AMPS, at Redemption Value — (47.3)%
                         (161,250,000 )  
Net Assets Applicable to Common Shares — 100.0%
  $ 340,990,239   

Notes to Schedule of Investments

(a)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(c)      
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(d)      
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(e)      
Non-income producing security.
(f)      
Security is perpetual in nature and has no stated maturity date.
(g)      
Variable rate security. Rate shown is as of report date.
(h)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty



   
Value
   
Unrealized
Appreciation

JPMorgan Chase & Co.
        $ 2,182,328         $ 7,329   

(i)      
Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.
(j)      
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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(k)      
Investments in issuers considered to be an affiliate of the Trust during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate



   
Shares
Held at
April 30, 2012

   
Net
Activity

   
Shares
Held at
April 30, 2013

   
Income
   
FFI Institutional Tax-Exempt Fund
     
3,693,013
  
(1,733,762)
  
1,959,251
  
$1,193
  

(l)      
Represents the current yield as of report date.
     
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 statement purposes as follows:
         
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the 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 Trust’s own assumptions used in determining the fair value of investments)
       
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 level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

See Notes to Financial Statements.

32 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (concluded)  BlackRock Municipal 2020 Term Trust (BKK)
       
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 Note 1 of the Notes to Financial Statements.
       
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of April 30, 2013:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Investments:
                                                                                
Long-Term Investments1
                    $ 499,664,550                     $ 499,664,550   
Short-Term Securities
        $ 1,959,251                                    1,959,251   
Total
        $   1,959,251         $  499,664,550                     $  501,623,801   
1 See 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 statement purposes. As of April 30, 2013, such liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Liabilities:
                                                      
Bank overdraft
                    $ (5,439 )                    $ (5,439 )  
TOB trust certificates
                       (3,750,000 )                       (3,750,000 )  
Total
                    $   (3,755,439 )                    $   (3,755,439 )  

There were no transfers between levels during the year ended April 30, 2013.

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 33
 
  
Schedule of Investments April 30, 2013 BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Alabama — 1.1%
                                        
Alabama State Docks Department, Refunding RB, 6.00%, 10/01/40
        $  4,080         $   4,864,707     
County of Jefferson Alabama Limited Obligation School, RB, Series A, 5.25%, 1/01/19
           2,910            2,909,069   
 
                         7,773,776   
Arizona — 3.2%
                                        
Salt Verde Financial Corp., RB:
                                        
5.00%, 12/01/32
           10,030            11,383,548   
Senior, 5.00%, 12/01/37
           9,460            10,613,647   
 
                         21,997,195   
California — 16.0%
                                        
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/44
           4,445            5,135,975   
California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, 11.08%, 6/01/55 (a)
           17,855            191,227   
California Health Facilities Financing Authority, RB:
                                        
Stanford Hospital and Clinics, Series A, 5.00%, 8/15/51
           2,305            2,577,128   
Sutter Health, Series B, 6.00%, 8/15/42
           6,230            7,706,821   
California Pollution Control Financing Authority, RB:
                                        
Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 7/01/37
           2,015            2,080,709   
Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45
           5,035            5,165,407   
San Diego County Water Authority Desalination Project Pipeline, 5.00%, 11/21/45
           2,415            2,496,458   
California State Public Works Board, RB, Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34
           2,315            2,873,610   
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42
           3,680            4,084,800   
California Statewide Communities Development Authority, Refunding RB, Episcopal Communities & Service:
                                        
5.00%, 5/15/42
           830             904,277   
5.00%, 5/15/47
           705             766,398   
City of Los Angeles Department of Airports, Refunding RB, Series A, 5.25%, 5/15/39
           1,560            1,810,895   
Foothill Eastern Transportation Corridor Agency California, Refunding RB, CAB (a):
                                        
6.05%, 1/15/32
           54,635            17,910,446   
6.09%, 1/15/38
           75,000            17,036,250   
Murrieta Community Facilities District Special Tax California, Special Tax Bonds, District No. 2, The Oaks Improvement Area A, 6.00%, 9/01/34
           5,000            5,067,300   
San Marcos Unified School District, GO, CAB, Election of 2010, Series B (a):
                                        
4.57%, 8/01/34
           3,500            1,339,695   
4.72%, 8/01/36
           4,000            1,351,920   
State of California, GO, Various Purpose:
                                        
6.00%, 3/01/33
           4,970            6,116,331   
6.50%, 4/01/33
           20,410            25,525,766   
 
                         110,141,413   
Colorado — 2.4%
                                        
City of Colorado Springs Colorado, RB, Subordinate Lien, Improvement, Series C (AGM), 5.00%, 11/15/15 (b)
           2,115            2,355,222   
Colorado Health Facilities Authority, Refunding RB:
                                        
Catholic Health Initiative, Series A, 5.50%, 7/01/34
           4,205            4,906,226   
Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42
           3,450            3,696,951   
Colorado State Board of Governors, Refunding RB, Series A, 5.00%, 3/01/43
           2,310            2,953,358   
Park Creek Metropolitan District Colorado, Refunding RB, Senior, Limited Tax, Property Tax, 5.50%, 12/01/37
           2,530            2,663,609   
 
                         16,575,366   
                     
Municipal Bonds          Par
(000)
     Value
Connecticut — 0.4%
                                        
Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, 5.00%, 11/15/40
        $  2,710         $   3,061,839     
Delaware — 1.6%
                                        
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40
           2,225            2,515,185   
Delaware State EDA, RB, Exempt Facilities, Indian River Power, 5.38%, 10/01/45
           7,950            8,528,919   
 
                         11,044,104   
District of Columbia — 4.0%
                                        
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 5/15/40
           23,035            23,668,002   
Metropolitan Washington Airports Authority, Refunding RB, First Senior Lien, Series A:
                                        
5.00%, 10/01/39
           990             1,095,672   
5.25%, 10/01/44
           2,465            2,753,060   
 
                         27,516,734   
Florida — 5.1%
                                        
County of Miami-Dade Florida, Refunding RB, Miami International Airport, Series A-1, 5.38%, 10/01/41
           2,280            2,596,282   
Highlands County Florida Health Facilities Authority, Refunding RB, Series 2006G, 5.13%, 11/15/32 (c)
           1,000            1,105,110   
Miami Beach Health Facilities Authority, RB, Mount Sinai Medical Center of Florida, 6.75%, 11/15/21
           6,075            6,570,902   
Mid-Bay Bridge Authority, RB, Series A, 7.25%, 10/01/40
           4,450            5,676,331   
Orange County Health Facilities Authority, Refunding RB, Mayflower Retirement Center:
                                        
5.00%, 6/01/32
           600             639,378   
5.00%, 6/01/36
           125             132,408   
5.13%, 6/01/42
           1,925            2,045,948   
Stevens Plantation Community Development District, Special Assessment Bonds, Series A, 7.10%, 5/01/35 (d)(e)
           3,590            2,692,572   
Tampa-Hillsborough County Expressway Authority, Refunding RB:
                                        
Series A, 5.00%, 7/01/37
           2,695            3,020,852   
Series B, 5.00%, 7/01/42
           4,925            5,487,681   
Village Community Development District No. 6, Special Assessment Bonds, 5.63%, 5/01/13 (b)
           5,015            5,015,702   
 
                         34,983,166   
Georgia — 1.7%
                                        
DeKalb Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39
           1,650            1,879,565   
Metropolitan Atlanta Rapid Transit Authority, RB, Third Series, 5.00%, 7/01/39
           5,000            5,761,850   
Richmond County Development Authority, Refunding RB, International Paper Co. Project, Series A, AMT, 6.00%, 2/01/25
           4,000            4,016,120   
 
                         11,657,535   
Hawaii — 0.5%
                                        
State of Hawaii Harbor System, RB, Series A, 5.25%, 7/01/30
           2,660            3,089,936   
Illinois — 11.5%
                                        
Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39
           4,110            4,692,017   
Chicago Illinois Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40
           2,055            2,350,776   
City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien, Series C, 6.50%, 1/01/41
           11,385            14,747,560   
City of Chicago Illinois, GO, Project, Series A:
                                        
5.00%, 1/01/33
           4,435            4,932,075   
5.00%, 1/01/34
           4,430            4,919,515   
City of Chicago Illinois, Sales Tax Revenue, Refunding RB, Series A, 5.25%, 1/01/38
           1,605            1,845,750   

See Notes to Financial Statements.

34 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (continued)  BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Illinois (concluded)
                                        
Illinois Finance Authority, RB, Advocate Health Care, Series C, 5.38%, 4/01/44
        $  10,630         $  12,181,980     
Illinois Finance Authority, Refunding RB:
                                        
Ascension Health, Series A, 5.00%, 11/15/37
           1,895            2,136,063   
Ascension Health, Series A, 5.00%, 11/15/42
           3,450            3,861,619   
Central Dupage Health, Series B, 5.50%, 11/01/39
           3,160            3,646,324   
Friendship Village Schaumburg, Series A, 5.63%, 2/15/37
           470             475,057   
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38 (f)
           4,550            5,145,458   
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:
                                        
Series B (AGM), 5.00%, 6/15/50
           3,905            4,215,174   
Series B-2, 5.00%, 6/15/50
           6,155            6,645,677   
Railsplitter Tobacco Settlement Authority, RB:
                                        
5.50%, 6/01/23
           2,625            3,208,328   
6.00%, 6/01/28
           2,245            2,741,572   
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34
           1,240            1,427,190   
 
                         79,172,135   
Indiana — 3.9%
                                        
Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A:
                                        
4.00%, 8/01/35
           2,215            2,325,041   
4.00%, 2/01/38
           3,555            3,717,215   
City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village, 6.25%, 1/01/24
           1,815            1,122,033   
Indiana Finance Authority, RB:
                                        
First Lien, CWA Authority Project, Series A, 5.25%, 10/01/38
           3,080            3,589,678   
Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/44
           880             933,988   
Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/48
           2,905            3,046,503   
Sisters of St. Francis Health, 5.25%, 11/01/39
           1,655            1,876,638   
Indiana Finance Authority, Refunding RB, Community Health Network Project, Series A, 5.00%, 5/01/42
           3,695            4,087,039   
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39
           2,150            2,554,135   
Indianapolis Local Public Improvement Bond Bank, RB, Series A (f):
                                        
5.00%, 1/15/36
           780             887,258   
5.00%, 1/15/40
           2,490            2,803,790   
 
                         26,943,318   
Iowa — 1.0%
                                        
Iowa Finance Authority, RB, Alcoa, Inc. Project, 4.75%, 8/01/42
           2,265            2,250,662   
Iowa Student Loan Liquidity Corp., Refunding RB, Senior Series A-1, AMT, 5.15%, 12/01/22
           3,830            4,434,106   
 
                         6,684,768   
Kansas — 0.5%
                                        
Kansas Development Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 5.00%, 1/01/40
           3,275            3,572,927   
Kentucky — 0.3%
                                        
Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40
           1,490            1,782,547   
Louisiana — 2.9%
                                        
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Projects, Series A-1, 6.50%, 11/01/35
           6,535            7,837,948   
Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A, 5.13%, 6/01/37
           4,340            4,602,830   
                     
Municipal Bonds          Par
(000)
     Value
Louisiana (concluded)
                                        
State of Louisiana Gasoline & Fuels Tax Revenue, RB, Second Lien, Series B, 5.00%, 5/01/45
        $  6,355         $   7,294,587     
 
                         19,735,365   
Maine — 0.3%
                                        
Maine State Turnpike Authority, RB, Series A, 5.00%, 7/01/42
           1,715            1,971,804   
Maryland — 1.2%
                                        
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35
           855             975,068   
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25
           1,760            1,965,304   
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community, 6.25%, 1/01/41
           4,295            4,912,320   
Montgomery County Housing Opportunities Commission, RB, Series D, AMT, 5.50%, 1/01/38
           510             528,345   
 
                         8,381,037   
Massachusetts — 0.6%
                                        
Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare, Series J1, 5.00%, 7/01/39
           3,535            3,933,147   
Michigan — 2.5%
                                        
City of Detroit Michigan Water Supply System, RB, Senior Lien, Series A,, 5.25%, 7/01/41
           6,015            6,521,162   
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36
           2,700            3,005,883   
Lansing Board of Water & Light Utilities System, RB, Series A, 5.50%, 7/01/41
           2,870            3,395,440   
Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, Series A, 5.25%, 11/15/46
           4,230            4,462,650   
 
                         17,385,135   
Mississippi — 2.0%
                                        
City of Gulfport Mississippi, RB, Memorial Hospital at Gulfport Project, Series A, 5.75%, 7/01/31
           14,025            14,049,123   
Missouri — 0.3%
                                        
Missouri State Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Home, 5.50%, 2/01/42
           2,035            2,198,940   
Multi-State — 2.5%
                                        
Centerline Equity Issuer Trust, 6.80%, 10/31/52 (g)(h)
           16,000            17,215,040   
Nebraska — 1.3%
                                        
Central Plains Energy Project Nebraska, RB, Gas Project No. 3:
                                        
5.25%, 9/01/37
           1,610            1,799,883   
5.00%, 9/01/42
           2,815            3,044,479   
Douglas County Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 1/01/40
           3,280            3,682,915   
Lancaster County Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, 5.63%, 1/01/40
           600             673,704   
 
                         9,200,981   
Nevada — 0.7%
                                        
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29
           4,550            4,973,651   
New Jersey — 7.1%
                                        
Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (d)(e)
           3,680            257,563   
New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT:
                                        
6.25%, 9/15/29
           3,830            4,023,721   
7.00%, 11/15/30 (c)
           15,410            15,467,788   
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28
           8,000            9,593,680   

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 35
 
  
Schedule of Investments (continued)  BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
New Jersey (concluded)
                                        
New Jersey State Turnpike Authority, RB, Series A:
                                        
5.00%, 1/01/38
        $  2,535         $   2,841,507     
5.00%, 1/01/43
           3,900            4,342,338   
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A, 5.50%, 6/15/41
           8,000            9,375,680   
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 4.50%, 6/01/23
           3,080            3,074,949   
 
                         48,977,226   
New York — 6.7%
                                        
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35 (d)(e)
           1,820            272,818   
Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.25%, 11/15/40
           2,375            2,687,027   
New York City Industrial Development Agency, RB, American
Airlines, Inc., JFK International Airport, AMT (c)(d)(e):
              
8.00%, 8/01/28
           5,000            5,782,200   
7.75%, 8/01/31
           22,140            25,433,989   
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49
           2,400            2,869,416   
New York State Thruway Authority, Refunding RB, Series I, 5.00%, 1/01/42
           3,465            3,869,816   
Port Authority of New York & New Jersey, RB, JFK International Air Terminal:
                                        
6.00%, 12/01/36
           2,525            2,964,350   
6.00%, 12/01/42
           1,960            2,294,886   
 
                         46,174,502   
North Carolina — 3.8%
                                        
Gaston County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35
           12,130            11,315,470   
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/38
           10,000            11,612,200   
North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/42
           2,750            3,067,680   
 
                         25,995,350   
Ohio — 3.0%
                                        
County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38
           6,125            6,878,130   
County of Hamilton Ohio, RB, Christ Hospital Project, 5.00%, 6/01/42
           3,580            3,836,256   
County of Montgomery Ohio, Refunding RB, Catholic Healthcare, Series A, 5.00%, 5/01/39
           5,450            6,016,473   
Pinnacle Community Infrastructure Financing Authority, RB, Facilities, Series A, 6.25%, 12/01/36
           3,760            3,812,452   
 
                         20,543,311   
Oregon — 0.1%
                                        
City of Tigard Washington County Oregon, Refunding RB, Water System, 5.00%, 8/01/37
           495             572,715   
Pennsylvania — 0.6%
                                        
Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project, 5.00%, 11/15/40
           3,725            4,155,126   
Puerto Rico — 3.9%
                                        
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.50%, 8/01/44
           10,900            12,361,254   
Puerto Rico Sales Tax Financing Corp., RB, CAB, Series A (a):
                                        
5.64%, 8/01/33
           11,400            3,695,652   
5.75%, 8/01/36
           40,000            10,708,800   
 
                         26,765,706   
                     
Municipal Bonds          Par
(000)
     Value
South Carolina — 1.8%
                                        
South Carolina Jobs, EDA, Refunding RB, Palmetto Health Alliance, Series A, 6.25%, 8/01/31
        $  5,075         $   5,149,349     
South Carolina State Ports Authority, RB, 5.25%, 7/01/40
           6,455            7,274,462   
 
                         12,423,811   
South Dakota — 0.3%
                                        
South Dakota Health and Educational Facilities Authority, RB, Sanford, Series E, 5.00%, 11/01/42
           2,095            2,320,380   
Tennessee — 0.1%
                                        
Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47
           415             470,108   
Texas — 16.5%
                                        
Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30
           4,370            387,881   
Central Texas Regional Mobility Authority, Refunding RB:
                                        
Senior Lien, 6.25%, 1/01/46
           4,210            4,973,273   
Senior Lien, Series A, 5.00%, 1/01/33 (f)
           195             214,939   
Senior Lien, Series A, 5.00%, 1/01/43 (f)
           365             394,010   
Subordinate Lien, 5.00%, 1/01/33 (f)
           700             742,371   
Subordinate Lien, 5.00%, 1/01/42 (f)
           620             645,036   
City of Dallas Texas Waterworks & Sewer System, Refunding RB, 5.00%, 10/01/35
           2,970            3,402,788   
City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39
           3,000            3,459,000   
City of Houston Texas Utility System, Refunding RB, Combined First Lien, Series A (AGC), 6.00%, 11/15/35
           16,425            19,865,381   
Dallas/Fort Worth International Airport, Refunding RB, Series E, AMT, 5.00%, 11/01/35
           3,535            3,773,577   
Fort Bend County Industrial Development Corp., RB, NRG Energy Project, Series B, 4.75%, 11/01/42
           2,890            2,909,797   
Harris County-Houston Sports Authority, Refunding RB (NPFGC) (a):
                                        
CAB, Junior Lien, Series H, 5.67%, 11/15/35
           5,000            1,419,100   
CAB, Senior Lien, Series A, 5.46%, 11/15/38
           12,580            3,180,727   
Third Lien, Series A-3, 5.79%, 11/15/37
           26,120            6,441,453   
Lower Colorado River Authority, Refunding RB:
                                        
(NPFGC), 5.00%, 5/15/13 (b)
           55             55,110   
LCRA Transmission Services Project (AMBAC), 4.75%, 5/15/34
           140             140,174   
Series A (NPFGC), 5.00%, 5/15/13 (b)
           5             5,010   
Midland County Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A (a):
                                        
4.71%, 9/15/40
           9,780            2,737,618   
4.78%, 9/15/41
           5,420            1,419,715   
North Texas Tollway Authority, Refunding RB, Toll, Second Tier, Series F, 6.13%, 1/01/31
           12,180            13,449,156   
San Antonio Energy Acquisition Public Facility Corp., RB, Gas Supply, 5.50%, 8/01/25
           6,540            7,870,105   
Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45
           7,930            9,506,008   
Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare, Series A, 5.00%, 8/15/43
           705             784,728   
Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/29
           3,700            4,008,765   
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:
                                        
LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40
           6,000            7,341,840   
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39
           6,500            7,815,340   
University of Texas System, Refunding RB, Financing System, Series B, 5.00%, 8/15/43
           6,000            7,008,960   
 
                         113,951,862   

See Notes to Financial Statements.

36 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (continued)  BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Utah — 1.3%
                                        
County of Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43
        $  3,940         $   4,442,271     
Utah State Charter School Finance Authority, RB,
Ogden Preparatory Academy:
                                        
3.25%, 10/15/36
           1,940            1,821,660   
3.25%, 10/15/42
           3,010            2,737,565   
 
                         9,001,496   
Virginia — 2.1%
                                        
City of Norfolk Virginia Parking System, Refunding RB, Series B (AMBAC), 5.50%, 2/01/31
           2,240            2,242,710   
Route 460 Funding Corp. of Virginia Toll Road, RB, Senior Lien, Series A, 5.13%, 7/01/49
           1,685            1,824,804   
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings Project, AMT:
                                        
5.25%, 1/01/32
           3,155            3,470,311   
6.00%, 1/01/37
           3,580            4,121,582   
5.50%, 1/01/42
           2,255            2,454,568   
 
                         14,113,975   
Washington — 1.1%
                                        
Washington Health Care Facilities Authority, RB, Swedish Health Services, Series A, 6.75%, 5/15/21 (b)
           3,900            5,462,067   
Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series A, 5.00%, 10/01/42
           1,980            2,228,371   
 
                         7,690,438   
Wisconsin — 2.9%
                                        
Wisconsin Health & Educational Facilities Authority, RB:
                                        
Ascension Health Senior Care Group, 5.00%, 11/15/30
           3,210            3,707,967   
Ascension Health Senior Care Group, 5.00%, 11/15/33
           1,640            1,860,777   
Aurora Health, Senior Credit Group, 6.40%, 4/15/33
           7,500            7,518,900   
WPPI Energy Wisconsin, Refunding RB, Power Supply System, Series A:
                                        
5.00%, 7/01/29
           740             862,507   
5.00%, 7/01/30
           935             1,084,478   
5.00%, 7/01/31
           2,035            2,354,576   
5.00%, 7/01/37
           2,470            2,795,917   
 
                         20,185,122   
Total Municipal Bonds — 118.8%
                         818,382,110   

Municipal Bonds Transferred to
Tender Option Bond Trusts (i)
                              
Alabama — 0.7%
                                        
Alabama Special Care Facilities Financing Authority-Birmingham, Refunding RB, Ascension Health Senior Credit Group, Series C-2, 5.00%, 11/15/36
           4,548            5,026,774   
Arizona — 0.8%
                                        
Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/38
           4,760            5,374,904   
California — 9.0%
                                        
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (j)
           5,115            5,943,272   
City of Los Angeles California Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, 5.00%, 5/15/40
           11,680            13,192,151   
Foothill-De Anza Community College District, GO, Series C, 5.00%, 8/01/40
           7,001            8,039,513   
Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32
           4,500            5,069,520   
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33
           3,260            3,903,664   
                     
Municipal Bonds Transferred to
Tender Option Bond Trusts (i)
         Par
(000)
     Value
California (concluded)
                                        
San Francisco City & County Public Utilities Commission, RB, Series B, 5.00%, 11/01/39
        $ 18,540         $  21,026,399     
University of California, RB, Series C (NPFGC), 4.75%, 5/15/13 (b)
           5,000            5,059,200   
 
                         62,233,719   
Colorado — 2.0%
                                        
Colorado Health Facilities Authority, RB, Catholic Health (AGM):
                                        
Series C-3, 5.10%, 10/01/41
           7,600            8,376,340   
Series C-7, 5.00%, 9/01/36
           4,860            5,289,867   
 
                         13,666,207   
Connecticut — 3.1%
                                        
Connecticut State Health & Educational Facility Authority, RB, Yale University:
                                        
Series T-1, 4.70%, 7/01/29
           9,397            10,577,472   
Series X-3, 4.85%, 7/01/37
           9,366            10,490,822   
 
                         21,068,294   
Florida — 1.1%
                                        
County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34
           6,629            7,486,138   
Illinois — 0.9%
                                        
City of Chicago Illinois Waterworks, Refunding RB, 5.00%, 11/01/42
           5,617            6,361,763   
Maryland — 1.3%
                                        
Maryland Health & Higher Educational Facilities Authority, RB, Ascension Health, Series B, 5.00%, 11/15/51
           8,140            9,104,590   
Massachusetts — 2.6%
                                        
Massachusetts School Building Authority, RB, Senior
Series B, 5.00%, 10/15/41
           8,860            10,225,060   
Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41
           6,770            7,558,434   
 
                         17,783,494   
Michigan — 0.9%
                                        
Detroit Water and Sewerage Department, Refunding RB, Senior Lien, Series A:
                                        
5.00%, 7/01/32
           3,063            3,344,642   
5.25%, 7/01/39
           2,649            2,890,162   
 
                         6,234,804   
New Hampshire — 0.7%
                                        
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (j)
           3,988            4,667,489   
New Jersey — 0.8%
                                        
New Jersey Transportation Trust Fund Authority, RB, Transportation, Series B, 5.25%, 6/15/36 (j)
           4,800            5,484,192   
New York — 12.9%
                                        
Hudson New York Yards Infrastructure Corp., RB, Senior Series A, 5.75%, 2/15/47
           3,130            3,715,765   
New York City Municipal Water Finance Authority, Refunding RB:
                                        
Series FF-2, 5.50%, 6/15/40
           3,074            3,628,324   
Second General Resolution Series HH, 5.00%, 6/15/31 (j)
           16,393            19,035,770   
New York City Transitional Finance Authority, RB, Future Tax Secured Revenue, Sub-Series E-1, 5.00%, 2/01/42
           4,799            5,469,400   
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43
           20,864            23,963,543   
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51
           12,610            14,954,955   
New York State Dormitory Authority, ERB, Series F, 5.00%, 3/15/35
           16,708            17,887,448   
 
                         88,655,205   

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 37
 
  
Schedule of Investments (continued)  BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to
Tender Option Bond Trusts (i)
         Par
(000)
     Value
Texas — 1.1%
                                        
Harris County Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41
        $  6,650         $   7,556,129     
Utah — 1.2%
                                        
City of Riverton Utah Hospital, RB, IHC Health Services, Inc., 5.00%, 8/15/41
           7,153            8,043,746   
Virginia — 1.8%
                                        
University of Virginia, Refunding RB, General, 5.00%, 6/01/40
           10,767            12,315,761   
Washington — 3.3%
                                        
Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32
           5,459            6,162,476   
State of Washington, GO, Various Purpose, Series E, 5.00%, 2/01/34
           14,487            16,846,364   
 
                         23,008,840   
Total Municipal Bonds Transferred to
                                        
Tender Option Bond Trusts — 44.2%
                         304,072,049   
Total Long-Term Investments
(Cost — $1,029,317,336) — 163.0%
                         1,122,454,159   
                     
 
Short-Term Securities
         Shares       Value
FFI Institutional Tax-Exempt Fund, 0.03% (k)(l)
           2,673,310         $     2,673,310   
Total Short-Term Securities
(Cost — $2,673,310) — 0.4%
                         2,673,310   
Total Investments (Cost — $1,031,990,646) — 163.4%
     1,125,127,469   
Other Assets Less Liabilities — 0.6%
                         4,742,836   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (24.7)%
                         (170,363,149 )  
VMTP Shares, at Liquidation Value — (39.3)%
                         (270,800,000 )  
Net Assets Applicable to Common Shares — 100.0%
  $ 688,707,156   

Notes to Schedule of Investments

(a)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(c)      
Variable rate security. Rate shown is as of report date.
(d)      
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(e)      
Non-income producing security.
(f)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty



   
Value
   
Unrealized
Appreciation

First Clearing LLC
        $ 3,691,048         $ 29,472   
JPMorgan Chase & Co.
        $ 7,141,814         $ 86,098   

(g)      
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.
(h)      
Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.
(i)      
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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(j)      
All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016 to June 15, 2019, is $21,392,255.
(k)      
Investments in issuers considered to be an affiliate of the Trust during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate



   
Shares
Held at
April 30, 2012

   
Net
Activity

   
Shares
Held at
April 30, 2013

   
Income
   
FFI Institutional Tax-Exempt Fund
     
12,181,066
  
(9,507,756)
  
2,673,310
  
$2,617
  

(l)      
Represents the current yield as of report date.

     
Financial futures contracts as of April 30, 2013 were as follows:

Contracts Sold


   
Issue
   
Exchange
   
Expiration
   
Notional
Value

   
Unrealized
Depreciation

(325)      
10-Year US Treasury Note
  
Chicago Board of Trade
  
June 2013
     $ 43,341,797         $ (578,770 )  

See Notes to Financial Statements.

38 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (concluded)  BlackRock Municipal Income Trust (BFK)

     
Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
       
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the 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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
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 and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument 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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
       
The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Investments:
                                                                                
Long-Term Investments1
                    $ 1,122,454,159                     $ 1,122,454,159   
Short-Term Securities
        $ 2,673,310                                    2,673,310   
Total
        $ 2,673,310         $ 1,122,454,159                     $ 1,125,127,469   
1 See above Schedule of Investments for values in each state or political subdivision.




   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                      
Liabilities:
                                                
Interest rate contracts
        $ (578,770 )                                $      (578,770 )  
 
                                                                                
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Cash
        $ 3,661,671                                 $     3,661,671   
Cash pledged for financial futures contracts
           428,000                                    428,000   
Liabilities:
                                                
TOB trust certificates
                    $  (170,263,014 )                       (170,263,014 )  
VMTP Shares
                       (270,800,000 )                       (270,800,000 )  
Total
        $ 4,089,671         $ (441,063,014 )                    $ (436,973,343 )  

There were no transfers between levels during the year ended April 30, 2013.

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 39
 
  
Schedule of Investments April 30, 2013 BlackRock Pennsylvania Strategic Municipal Trust (BPS)
(Percentages shown are based on Net Assets)

Municipal Bonds          Par
(000)
     Value
Pennsylvania — 119.3%
Corporate — 5.0%
                                        
Beaver County IDA, Refunding RB, First Energy, Nuclear Energy Corp. Project, Mandatory Put Bonds, Series A, 3.38%, 1/01/35 (a)
        $   200          $    206,582     
Pennsylvania Economic Development Financing Authority, RB:
                                        
American Water Co. Project, 6.20%, 4/01/39
           210             244,213   
Aqua Pennsylvania, Inc. Project, Series A, AMT, 6.75%, 10/01/18
           600             763,002   
Pennsylvania Economic Development Financing Authority, Refunding RB, AMT:
                                        
Amtrak Project, Series A, 5.00%, 11/01/41
           160             173,731   
Aqua Pennsylvania, Inc. Project, Series A, 5.00%, 12/01/34
           180             200,128   
 
                         1,587,656   
County/City/Special District/School District — 12.6%
                                        
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:
                                        
5.00%, 5/01/35
           190             204,693   
5.00%, 5/01/42
           450             480,582   
City of Philadelphia Pennsylvania, GO, Refunding, Series A (AGC), 5.00%, 8/01/24
           370             417,075   
City of Pittsburgh Pennsylvania, GO, Refunding, Series B, 5.00%, 9/01/26
           125             146,219   
County of Lycoming Pennsylvania, GO, Series A (AGM):
                                        
4.00%, 8/15/38
           160             166,082   
4.00%, 8/15/42
           100             103,374   
County of York Pennsylvania, GO, Refunding, 5.00%, 3/01/36
           100             111,752   
Falls Township Pennsylvania, RB, Water & Sewer Authority, 5.00%, 12/01/37
           200             226,354   
Marple Newtown School District, GO (AGM), 5.00%, 6/01/31
           600             693,714   
Owen J. Roberts School District, GO, 4.75%, 11/15/25
           700             810,208   
Philadelphia School District, GO, Series E, 6.00%, 9/01/38
           100             117,015   
Philipsburg Osceola Area School District Pennsylvania, GO (AGM):
                                        
5.00%, 4/01/41
           155             164,636   
Series A, 4.00%, 4/01/35
           150             154,531   
Series A, 4.00%, 4/01/38
           110             112,277   
Series A, 4.00%, 4/01/41
           40             40,910   
 
                         3,949,422   
Education — 17.2%
                                        
Adams County IDA, Refunding RB, Gettysburg College:
                                        
5.00%, 8/15/24
           100             115,692   
5.00%, 8/15/25
           100             114,950   
Cumberland County Municipal Authority, RB, AICUP Financing Program, Dickinson College Project, 5.00%, 11/01/39
           200             223,848   
Delaware County Authority, Refunding RB:
                                        
Haverford College, 5.00%, 11/15/35
           415             470,992   
Villanova University, 5.25%, 12/01/31
           100             114,252   
Pennsylvania Higher Educational Facilities Authority, RB:
                                        
Drexel University, Series A (NPFGC), 5.00%, 5/01/37
           150             163,492   
Shippensburg University Student Services, Inc., Student Housing Project, 5.00%, 10/01/35
           130             142,251   
Shippensburg University Student Services, Inc., Student Housing Project, 5.00%, 10/01/44
           265             286,484   
Thomas Jefferson University, 5.00%, 3/01/40
           1,000            1,109,690   
                     
Municipal Bonds          Par
(000)
     Value
Pennsylvania (continued)
Education (continued)
                                        
Pennsylvania Higher Educational Facilities Authority, Refunding RB:
                                        
Drexel University, Series A, 5.25%, 5/01/41
        $ 1,180         $  1,337,129   
State System of Higher Education, Series AL, 5.00%, 6/15/35
           100             114,535     
Thomas Jefferson University, 4.00%, 3/01/37
           70             71,863   
Thomas Jefferson University, 5.00%, 3/01/42
           60             67,827   
State Public School Building Authority, RB, Community College of Allegheny County Project (AGM), 5.00%, 7/15/34
           310             348,796   
University of Pittsburgh Pennsylvania, RB, Capital Project, Series B, 5.00%, 9/15/28
           610             720,215   
 
                         5,402,016   
Health — 35.2%
                                        
Berks County Municipal Authority, Refunding RB, Reading Hospital & Medical Center Project, Series A-3, 5.50%, 11/01/31
           500             587,545   
Centre County Hospital Authority, RB, Mount Nittany Medical Center Project, 7.00%, 11/15/46
           390             497,235   
Cumberland County Municipal Authority, Refunding RB:
                                        
Asbury Pennsylvania Obligated Group, 5.25%, 1/01/41
           210             216,248   
Diakon Lutheran, 6.38%, 1/01/39
           500             561,020   
Dauphin County General Authority, Refunding RB, Pinnacle Health System Project, Series A, 6.00%, 6/01/29
           500             568,555   
Franklin County IDA Pennsylvania, Refunding RB, Chambersburg Hospital Project, 5.38%, 7/01/42
           415             456,753   
Lehigh County General Purpose Authority, Refunding RB, Saint Luke’s Bethlehem Hospital, 5.38%, 8/15/13 (b)
           1,900            1,928,557   
Montgomery County Higher Education & Health Authority, Refunding RB, Abington Memorial Hospital:
                                        
3.25%, 6/01/26
           115             113,949   
3.75%, 6/01/31
           85             85,258   
Montgomery County IDA Pennsylvania, RB, Acts Retirement Life Communities, Series A, 4.50%, 11/15/36
           375             378,536   
Montgomery County IDA Pennsylvania, Refunding RB, Acts Retirement Life Communities:
                                        
5.00%, 11/15/27
           175             195,806   
5.00%, 11/15/28
           110             121,883   
5.00%, 11/15/29
           100             108,709   
Pennsylvania Higher Educational Facilities Authority, RB, University of Pennsylvania Health System, Series A, 5.00%, 8/15/42
           270             301,423   
Pennsylvania Higher Educational Facilities Authority, Refunding RB, University of Pittsburgh Medical Center, Series E, 5.00%, 5/15/31
           1,000            1,118,010   
Philadelphia Hospitals & Higher Education Facilities Authority, RB, Children’s Hospital of Philadelphia, Series C, 5.00%, 7/01/41
           940             1,052,142   
Saint Mary Hospital Authority, Refunding RB, Catholic Health East, Series A:
                                        
5.00%, 11/15/26
           250             276,095   
5.00%, 11/15/27
           175             192,659   
South Fork Municipal Authority, Refunding RB, Conemaugh Valley Memorial, Series B (AGC), 5.38%, 7/01/35
           245             273,400   
Southcentral General Authority, Refunding RB, Wellspan Health Obligor Group, Series A, 6.00%, 6/01/29
           1,250            1,439,425   
Union County Hospital Authority, Refunding RB, Evangelical Community Hospital Project, 7.00%, 8/01/41
           460             567,074   
 
                         11,040,282   

See Notes to Financial Statements.

40 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (continued)  BlackRock Pennsylvania Strategic Municipal Trust (BPS)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Pennsylvania (continued)
Housing — 12.2%
                                        
Pennsylvania HFA, RB, S/F Mortgage:
                                        
Series 114C, 3.65%, 10/01/37
        $   390          $    390,835     
Series 114C, 3.70%, 10/01/42
           675             676,586   
Series 115A, AMT, 4.20%, 10/01/33 (c)
           750             766,980   
Pennsylvania HFA, Refunding RB, S/F Mortgage:
                                        
Series 92-A, AMT, 4.75%, 4/01/31
           95             96,794   
Series 97-A, AMT, 4.65%, 10/01/31
           1,300            1,339,117   
Series 99-A, AMT, 5.15%, 4/01/38
           210             235,053   
Series 105-C, 4.88%, 10/01/34
           185             188,920   
Series 110-B, 4.75%, 10/01/39
           150             154,338   
 
                         3,848,623   
State — 10.4%
                                        
Commonwealth of Pennsylvania, GO, First Series:
                                        
5.00%, 6/01/28
           1,360            1,638,474   
5.00%, 3/15/29
           275             316,885   
Penn Delco Pennsylvania School District, GO (State Aid Withholding):
                                        
4.00%, 6/01/32
           150             161,973   
4.00%, 6/01/34
           110             117,965   
4.00%, 6/01/38
           205             217,007   
Pennsylvania Economic Development Financing Authority, Refunding RB, Unemployment Compensation, Series B, 5.00%, 7/01/23
           500             547,575   
State Public School Building Authority, Refunding RB, Harrisburg School District Project, Series A (AGC), 5.00%, 11/15/33
           250             273,247   
 
                         3,273,126   
Transportation — 21.2%
                                        
City of Philadelphia Pennsylvania, ARB, Series A:
                                        
5.00%, 6/15/40
           1,325            1,429,383   
AMT (AGM), 5.00%, 6/15/37
           1,150            1,246,496   
Delaware River Port Authority Pennsylvania & New Jersey, RB, Series D, 5.00%, 1/01/40
           750             837,150   
Pennsylvania Turnpike Commission, Motor License Fund, Enhanced Turnpike Subordinate Special, RB, Series A:
                                        
5.00%, 12/01/37
           140             155,673   
5.00%, 12/01/42
           215             238,902   
Pennsylvania Turnpike Commission, RB:
                                        
Senior Lien, Series A, 5.00%, 12/01/42
           470             522,128   
Series A (AMBAC), 5.25%, 12/01/32
           870             926,037   
Sub-Series A, 5.13%, 12/01/26
           100             115,432   
Sub-Series A, 6.00%, 12/01/41
           100             113,603   
Pennsylvania Turnpike Commission, Refunding RB, Sub-Series B, 5.25%, 6/01/24
           250             288,725   
Southeastern Pennsylvania Transportation Authority, RB, Capital Grant Receipts:
                                        
5.00%, 6/01/28
           290             334,512   
5.00%, 6/01/29
           385             441,402   
 
                         6,649,443   
Utilities — 5.5%
                                        
Bucks County Water & Sewer Authority, RB, Water System (AGM), 5.00%, 12/01/41
           100             114,143   
City of Philadelphia Pennsylvania Gas Works, RB, Ninth Series, 5.25%, 8/01/40
           270             291,049   
City of Philadelphia Pennsylvania Water & Wastewater, RB:
              
Series A, 5.25%, 1/01/36
           100             110,985   
Series C (AGM), 5.00%, 8/01/40
           350             391,916   
Erie Pennsylvania Water Authority, Refunding RB (AGM):
                                        
4.00%, 12/01/32
           160             167,616   
4.00%, 12/01/34
           185             190,798   
4.00%, 12/01/36
           130             133,649   
Lycoming County Water & Sewer Authority, RB (AGM), 5.00%, 11/15/41
           100             108,215   
                     
Municipal Bonds          Par
(000)
     Value
Pennsylvania (concluded)
Utilities (concluded)
                                        
Pennsylvania Economic Development Financing Authority, RB, Philadelphia Biosolids Facility, 6.25%, 1/01/32
        $   185          $    212,882     
 
                         1,721,253   
Total Municipal Bonds in Pennsylvania
                         37,471,821   
 
Guam — 1.2%
State — 0.5%
                                        
Territory of Guam, Limited Obligation Bonds, RB, Section 30, Series A, 5.63%, 12/01/29
           150             167,013   
Utilities — 0.7%
                                        
Guam Power Authority, Refunding RB, Series A, 5.00%, 10/01/34
           185             204,751   
Total Municipal Bonds in Guam
                         371,764   
 
Puerto Rico — 6.8%
State — 4.5%
                                        
Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series N, 5.00%, 7/01/37
           300             284,661   
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39
           1,000            1,127,220   
 
                         1,411,881   
Utilities — 2.3%
                                        
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 7/01/38
           200             203,978   
Puerto Rico Electric Power Authority, RB, Series WW, 5.50%, 7/01/38
           500             505,555   
 
                         709,533   
Total Municipal Bonds in Puerto Rico
                         2,121,414   
Total Municipal Bonds — 127.3%
                         39,964,999   

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
Pennsylvania — 37.6%
Education — 9.3%
                                        
Pennsylvania Higher Educational Facilities Authority, RB, University of Pennsylvania Health System, Series A:
                                        
4.00%, 8/15/39
           220             225,139   
5.75%, 8/15/41
           850             1,004,675   
Pennsylvania Higher Educational Facilities Authority, Refunding RB, Trustees of the University of Pennsylvania, Series C, 4.75%, 7/15/35
           500             535,190   
Pennsylvania State University, RB, 5.00%, 3/01/40
           1,000            1,158,140   
 
                         2,923,144   
Health — 13.0%
                                        
Geisinger Authority Pennsylvania Health Systems, RB:
                                        
Series A, 5.13%, 6/01/34
           500             554,290   
Series A, 5.25%, 6/01/39
           1,000            1,109,116   
Series A-1, 5.13%, 6/01/41
           1,160            1,307,389   
Philadelphia Hospitals & Higher Education Facilities Authority, Refunding RB, Jefferson Health System, Series B, 5.00%, 5/15/40
           1,000            1,094,190   
 
                         4,064,985   

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 41
 
  
Schedule of Investments (continued)  BlackRock Pennsylvania Strategic Municipal Trust (BPS)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
         Par
(000)
     Value
Pennsylvania (concluded)
Housing — 4.2%
                                        
Pennsylvania HFA, Refunding RB, S/F:
                                        
Series 113, 4.85%, 10/01/37
        $   780               $   841,620     
Series 96-A, AMT, 4.70%, 10/01/37
           470             481,651   
 
                         1,323,271   
State — 11.1%
                                        
Commonwealth of Pennsylvania, GO, First Series:
                                        
5.00%, 3/15/28
           825             956,771   
5.00%, 11/15/30
           1,180            1,401,628   
Pennsylvania Turnpike Commission, RB, Pennsylvania Turnpike, Series C, (NPFGC), 5.00%, 12/01/32
           1,000            1,130,490   
 
                         3,488,889   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts in Pennsylvania — 37.6%
                         11,800,289   
                     
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
         Par
(000)
     Value
Puerto Rico — 1.1%
State — 1.1%
                                        
Puerto Rico Sales Tax Financing Corp., Refunding RB, Series C, 5.25%, 8/01/40
        $   300          $     325,023     
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 38.7%
                         12,125,312   
Total Long-Term Investments
(Cost — $47,790,857) — 166.0%
                        52,090,311   

Short-Term Securities          Shares        
BIF Pennsylvania Municipal Money Fund, 0.03% (e)(f)
           1,396,790            1,396,790   
Total Short-Term Securities
(Cost — $1,396,790) — 4.4%
                         1,396,790   
Total Investments (Cost — $49,187,647) — 170.4%
                         53,487,101   
Liabilities in Excess of Other Assets — (0.2)%
                         (63,726 )  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (18.3)%
                         (5,726,989 )  
VRDP Shares, at Liquidation Value — (51.9)%
                         (16,300,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 31,396,386   

Notes to Schedule of Investments

(a)      
Variable rate security. Rate shown is as of report date.
(b)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(c)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty



   
Value
   
Unrealized
Appreciation

JPMorgan & Chase Co.
        $ 766,980         $ 16,980   

(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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(e)      
Investments in issuers considered to be an affiliate of the Trust during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate



   
Shares
Held at
April 30, 2012

   
Net
Activity

   
Shares
Held at
April 30, 2013

   
Income
   
BIF Pennsylvania Municipal Money Fund
     
1,862,600
  
(465,810)
  
1,396,790
  
—  
  

(f)      
Represents the current yield as of report date.

     
For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
     
Financial futures contracts as of April 30, 2013 were as follows:

Contracts Sold


   
Issue
   
Exchange
   
Expiration
   
Notional
Value

   
Unrealized
Depreciation

(28)      
10-Year US Treasury Note
  
Chicago Board of Trade
  
June 2013
     $ 3,734,063         $ (56,382 )  

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

See Notes to Financial Statements.

42 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (concluded)  BlackRock Pennsylvania Strategic Municipal Trust (BPS)

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 level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

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 and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument 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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Investments:
                                                                                
Long-Term Investments1
                    $  52,090,311                     $  52,090,311   
Short-Term Securities
        $ 1,396,790                                    1,396,790   
Total
        $ 1,396,790         $ 52,090,311                     $ 53,487,101   
1 See above Schedule of Investments for values in sector.




   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                      
Liabilities:
                                                                                
Interest rate contracts
        $   (56,382 )                                $     (56,382 )  
 
                                                                          
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.                                                       

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Cash pledged for financial futures contracts
        $    36,000                                 $ 36,000   
Liabilities:
                                                                          
TOB trust certificates
                    $ (5,724,261 )                       (5,724,261 )  
VRDP Shares
                       (16,300,000 )                       (16,300,000 )  
Total
        $ 36,000         $ (22,024,261 )                    $ (21,988,261 )  

There were no transfers between levels during the year ended April 30, 2013.

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 43
 
  
Schedule of Investments April 30, 2013 BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Alabama — 1.1%
                                        
Alabama State Docks Department, Refunding RB, 6.00%, 10/01/40
        $ 655          $     780,976     
County of Jefferson Alabama, RB, Series A, 5.25%, 1/01/19
           465             464,851   
 
                         1,245,827   
Alaska — 1.1%
                                        
Northern Tobacco Securitization Corp., Refunding RB, Series A:
              
4.63%, 6/01/23
           725             727,487   
5.00%, 6/01/46
           530             472,150   
 
                         1,199,637   
Arizona — 1.9%
                                        
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37
           1,320            1,480,974   
San Luis Facility Development Corp., RB, Senior Lien, Regional Detention Center Project:
                                        
6.25%, 5/01/15
           90             89,236   
7.00%, 5/01/20
           210             204,802   
7.25%, 5/01/27
           420             370,285   
 
                         2,145,297   
California — 7.7%
                                        
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/44
           720             831,924   
California County Tobacco Securitization Agency, RB, CAB Stanislaus, Sub-Series C, 11.08%, 6/01/55 (a)
           3,095            33,147   
California Health Facilities Financing Authority, RB:
                                        
Stanford Hospital and Clinics, Series A, 5.00%, 8/15/51
           370             413,682   
Sutter Health, Series B, 6.00%, 8/15/42
           1,010            1,249,420   
California Pollution Control Financing Authority, RB:
                                        
Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 7/01/37
           325             335,598   
Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45
           810             830,979   
San Diego County Water Authority Desalination Project Pipeline, 5.00%, 11/21/45
           390             403,155   
California State Public Works Board, RB, Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34
           375             465,488   
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42
           690             765,900   
City of Los Angeles Department of Airports, Refunding RB, Series A, 5.25%, 5/15/39
           250             290,208   
Foothill Eastern Transportation Corridor Agency California, Refunding RB, CAB, 6.05%, 1/15/33 (a)
           3,835            1,184,171   
State of California, GO, Various Purpose:
                                        
6.00%, 3/01/33
           800             984,520   
6.50%, 4/01/33
           650             812,923   
 
                         8,601,115   
Colorado — 1.9%
                                        
Colorado Health Facilities Authority, Refunding RB:
                                        
Catholic Health Initiatives, Series A, 5.50%, 7/01/34
           680             793,397   
Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42
           5             5,358   
Colorado State Board of Governors, Refunding RB, Series A, 5.00%, 3/01/43
           370             473,049   
Park Creek Metropolitan District Colorado, Refunding RB, Senior, Limited Tax, Property Tax, 5.50%, 12/01/37
           440             463,236   
Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31
           320             363,913   
 
                         2,098,953   
                     
Municipal Bonds          Par
(000)
     Value
Delaware — 2.1%
                                        
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40
        $   820          $     926,944     
Delaware State EDA, RB, Exempt Facilities, Indian River Power, 5.38%, 10/01/45
           1,280            1,373,210   
 
                         2,300,154   
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             750,113   
Metropolitan Washington Airports Authority, Refunding RB, First Senior Lien, Series A:
                                        
5.00%, 10/01/39
           160             177,078   
5.25%, 10/01/44
           1,000            1,116,860   
 
                         2,044,051   
Florida — 7.4%
                                        
Highlands County Florida Health Facilities Authority, Refunding RB, Adventist, Series G, 5.13%, 11/15/32 (b)
           1,000            1,105,110   
Hillsborough County IDA, RB, National Gypsum Co., Series A, AMT, 7.13%, 4/01/30
           1,500            1,504,740   
Miami Beach Health Facilities Authority, RB, Mount Sinai Medical Center of Florida, 6.75%, 11/15/21
           1,010            1,092,446   
Mid-Bay Bridge Authority, RB, Series A, 7.25%, 10/01/40
           720             918,418   
Sumter Landing Community Development District Florida, RB, Sub-Series B, 5.70%, 10/01/38
           1,490            1,404,265   
Tampa-Hillsborough County Expressway Authority, Refunding RB:
                                        
Series A, 5.00%, 7/01/37
           435             487,596   
Series B, 5.00%, 7/01/42
           790             880,258   
Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43
           785             805,724   
 
                         8,198,557   
Georgia — 1.4%
                                        
DeKalb Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39
           265             301,870   
Metropolitan Atlanta Rapid Transit Authority, RB, Third Series, 5.00%, 7/01/39
           1,095            1,261,845   
 
                         1,563,715   
Hawaii — 0.4%
                                        
State of Hawaii Harbor System, RB, Series A, 5.25%, 7/01/30
           425             493,693   
Illinois — 14.7%
                                        
Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39
           625             713,506   
Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40
           330             377,497   
City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien,:
                                        
Series A, 5.63%, 1/01/35
           800             935,720   
Series A, 5.75%, 1/01/39
           1,500            1,762,695   
Series C, 6.50%, 1/01/41
           1,855            2,402,874   
City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/34
           1,430            1,588,015   
City of Chicago Illinois, Refunding RB, Series A, 5.25%, 1/01/38
           260             299,000   
Illinois Finance Authority, Refunding RB:
                                        
Ascension Health, Series A 5.00%, 11/15/37
           305             343,799   
Central DuPage Health, Series B, 5.50%, 11/01/39
           2,500            2,884,750   
Friendship Village Schaumburg, Series A, 5.63%, 2/15/37
           145             146,560   
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38 (c)
           730             825,535   

See Notes to Financial Statements.

44 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (continued)  BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Illinois (concluded)
                                        
Metropolitan Pier & Exposition Authority, Refunding RB (AGM):
              
CAB, Series B, 4.95%, 6/15/44 (a)
        $ 2,980         $     650,504     
McCormick Place Expansion Project, Series B, 5.00%, 6/15/50
           990             1,068,923   
McCormick Place Expansion Project, Series B-2, 5.00%, 6/15/50
           785             847,353   
Railsplitter Tobacco Settlement Authority, RB:
                                        
5.50%, 6/01/23
           175             213,888   
6.00%, 6/01/28
           940             1,147,919   
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34
           200             230,192   
 
                         16,438,730   
Indiana — 4.7%
                                        
Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A:
                                        
4.00%, 8/01/35
           355             372,636   
4.00%, 8/01/38
           570             596,009   
Indiana Finance Authority, RB:
                                        
First Lien, CWA Authority Project, Series A, 5.25%, 10/01/38
           500             582,740   
Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/44
           140             148,589   
Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/48
           465             487,650   
Sisters of St. Francis Health, 5.25%, 11/01/39
           270             306,158   
Indiana Finance Authority, Refunding RB, Community Health Network Project, Series A, 5.00%, 5/01/42
           595             658,130   
Indiana Health Facility Financing Authority, Refunding RB, Methodist Hospital, Inc., 5.38%, 9/15/22
           1,060            1,061,717   
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39
           350             415,790   
Indianapolis Local Public Improvement Bond Bank, RB, Series A (c):
                                        
5.00%, 1/15/36
           125             142,189   
5.00%, 1/15/40
           400             450,408   
 
                         5,222,016   
Iowa — 1.0%
                                        
Iowa Finance Authority, RB, Alcoa, Inc. Project, 4.75%, 8/01/42
           365             362,690   
Iowa Student Loan Liquidity Corp., Refunding RB, Senior Series A-1, AMT, 5.15%, 12/01/22
           625             723,581   
 
                         1,086,271   
Kansas — 0.4%
                                        
Kansas Development Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 5.00%, 1/01/40
           450             490,937   
Kentucky — 3.2%
                                        
Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40
           320             382,829   
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 3.86%, 10/01/24 (a)
           5,000            3,230,250   
 
                         3,613,079   
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            1,265,346   
Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A, 5.13%, 6/01/37
           1,000            1,060,560   
State of Louisiana Gasoline & Fuels Tax Revenue, RB, Second Lien, Series B, 5.00%, 5/01/45
           1,025            1,176,546   
 
                         3,502,452   
                     
Municipal Bonds          Par
(000)
     Value
Maine — 1.0%
                                        
Maine State Turnpike Authority, RB, Series A, 5.00%, 7/01/42
        $ 1,000         $   1,149,740     
Maryland — 1.8%
                                        
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35
           135             153,958   
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25
           1,000            1,116,650   
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community, 6.25%, 1/01/41
           690             789,174   
 
                         2,059,782   
Massachusetts — 1.2%
                                        
Massachusetts Development Finance Agency, RB, Wellesley College Issue, Series J, 5.00%, 7/01/42
           570             661,764   
Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare, Series J1, 5.00%, 7/01/39
           570             634,199   
 
                         1,295,963   
Michigan — 4.0%
                                        
City of Detroit Michigan Water Supply System, RB, Senior Lien, Series A, 5.25%, 7/01/41
           1,500            1,626,225   
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36
           435             484,281   
Lansing Board of Water & Light Utilities System, RB, Series A, 5.50%, 7/01/41
           465             550,132   
Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, Series A, 5.25%, 11/15/46
           500             527,500   
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39
           1,000            1,281,170   
 
                         4,469,308   
Missouri — 0.3%
                                        
Missouri State Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Home, 5.50%, 2/01/42
           330             356,585   
Nebraska — 1.4%
                                        
Central Plains Energy Project Nebraska, RB, Gas Project No. 3:
              
5.25%, 9/01/37
           260             290,664   
5.00%, 9/01/42
           455             492,092   
Douglas County Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 1/01/40
           720             808,445   
 
                         1,591,201   
Nevada — 0.9%
                                        
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29
           880             961,937   
New Jersey — 4.7%
                                        
Middlesex County Improvement Authority, RB, Subordinate Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (d)(e)
           645             45,144   
New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT:
              
6.40%, 9/15/23
           470             493,716   
6.25%, 9/15/29
           145             152,334   
New Jersey State Turnpike Authority, RB:
                                        
Series A, 5.00%, 1/01/38
           410             459,573   
Series A, 5.00%, 1/01/43
           625             695,887   
Series E, 5.25%, 1/01/40
           1,355            1,517,302   
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A, 5.50%, 6/15/41
           575             673,877   
Port Authority of New York & New Jersey, RB, JFK International Air Terminal, 6.00%, 12/01/42
           395             462,490   

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 45
 
  
Schedule of Investments (continued)  BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
New Jersey (concluded)
                                        
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 4.50%, 6/01/23
        $   770          $     768,737     
 
                         5,269,060   
New York — 5.3%
                                        
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35 (d)(e)
           315             47,219   
Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.25%, 11/15/40
           385             435,581   
New York City Industrial Development Agency, RB, AMT:
                                        
American Airlines, Inc., JFK International Airport, 7.75%, 8/01/31 (b)(d)(e)
           3,000            3,446,340   
British Airways Plc Project, 7.63%, 12/01/32
           1,000            1,019,980   
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49
           385             460,302   
Port Authority of New York & New Jersey, RB, JFK International Air Terminal, 6.00%, 12/01/36
           410             481,340   
 
                         5,890,762   
North Carolina — 0.4%
                                        
North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/42
           440             490,829   
Ohio — 2.4%
                                        
County of Hamilton Ohio, RB, Christ Hospital Project, 5.00%, 6/01/42
           575             616,158   
County of Montgomery Ohio, Refunding RB, Catholic Healthcare, Series A, 5.00%, 5/01/39
           885             976,987   
State of Ohio, RB, Ford Motor Co. Project, AMT, 5.75%, 4/01/35
           1,000            1,037,800   
 
                         2,630,945   
Oregon — 0.8%
                                        
City of Tigard Washington County Oregon, Refunding RB, Water System, 5.00%, 8/01/37
           80             92,560   
Oregon State Facilities Authority, RB, (AGC), 5.00%, 7/01/44
           715             794,916   
 
                         887,476   
Pennsylvania — 0.6%
                                        
Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project, 5.00%, 11/15/40
           600             669,282   
Puerto Rico — 3.1%
                                        
Puerto Rico Sales Tax Financing Corp., RB, Sub-Series A, 6.50%, 8/01/44
           1,770            2,007,286   
Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series C, 5.54%, 8/01/39 (a)
           5,910            1,407,762   
 
                         3,415,048   
South Carolina — 3.3%
                                        
South Carolina Jobs, EDA, Refunding RB, Palmetto Health, Series C (f):
                                        
7.00%, 8/01/13
           2,225            2,262,892   
7.00%, 8/01/13
           275             279,683   
South Carolina State Ports Authority, RB, 5.25%, 7/01/40
           1,040            1,172,028   
 
                         3,714,603   
South Dakota — 0.3%
                                        
South Dakota Health and Educational Facilities Authority, RB, Sanford, Series E, 5.00%, 11/01/42
           335             371,039   
Tennessee — 0.1%
                                        
Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47
           65             73,631   
                     
Municipal Bonds          Par
(000)
     Value
Texas — 17.2%
                                        
Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30
        $   730          $      64,795     
Central Texas Regional Mobility Authority, Refunding RB:
                                        
Senior Lien, 6.25%, 1/01/46
           680             803,284   
Senior Lien, Series A, 5.00%, 1/01/33 (c)
           30             33,068   
Senior Lien, Series A, 5.00%, 1/01/43 (c)
           60             64,769   
Subordinate Lien, 5.00%, 1/01/33 (c)
           115             121,961   
Subordinate Lien, 5.00%, 1/01/42 (c)
           100             104,038   
City of Dallas Texas Waterworks & Sewer System, Refunding RB, 5.00%, 10/01/35
           475             544,217   
City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39
           485             559,205   
City of Houston Texas Utility System, Refunding RB, Combined, First Lien, Series A (AGC), 6.00%, 11/15/35
           2,730            3,301,826   
Dallas/Fort Worth International Airport, Refunding RB, Series E, AMT, 5.00%, 11/01/35
           565             603,132   
Fort Bend County Industrial Development Corp., RB, NRG Energy Project, Series B, 4.75%, 11/01/42
           465             468,185   
Harris County-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC), 5.46%, 11/15/38 (a)
           4,750            1,200,990   
La Joya Independent School District, Refunding GO (PSF-GTD):
              
4.00%, 2/15/32
           1,400            1,519,840   
4.00%, 2/15/33
           1,000            1,081,370   
La Vernia Higher Education Finance Corp., RB, KIPP, Inc., 6.38%, 8/15/44
           500             584,515   
Midland County Fresh Water Supply District No. 1, RB, City of Midland Project, CAB, Series A, 4.51%, 9/15/37 (a)
           4,935            1,663,983   
North Texas Tollway Authority, RB, CAB, Special Projects System, Series B, 5.06%, 9/01/37 (a)
           640             189,779   
North Texas Tollway Authority, Refunding RB, Toll, Second Tier, Series F, 6.13%, 1/01/31
           1,025            1,131,805   
Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45
           1,270            1,522,400   
Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare, Series A, 5.00%, 8/15/43
           115             128,005   
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            1,223,640   
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39
           500             601,180   
Texas State Public Finance Authority, Refunding ERB, KIPP, Inc., Series A (ACA), 5.00%, 2/15/36
           500             508,140   
University of Texas System, Refunding RB, Financial System, Series B, 5.00%, 8/15/43
           970             1,133,115   
 
                         19,157,242   
Utah — 0.6%
                                        
County of Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43
           635             715,950   
Virginia — 6.4%
                                        
City of Norfolk Virginia Parking System, Refunding RB, Series B (AMBAC), 5.50%, 2/01/31
           355             355,430   
Fairfax County EDA, Refunding RB, Goodwin House, Inc., 5.13%, 10/01/42
           1,000            1,057,990   
Route 460 Funding Corp. of Virginia Toll Road, RB, Senior Lien, Series A, 5.13%, 7/01/49
           390             422,358   
University of Virginia, Refunding RB, General, 5.00%, 6/01/40
           2,500            2,859,450   

See Notes to Financial Statements.

46 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (continued)  BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)
     Value
Virginia (concluded)
                                        
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings Project, AMT:
                                        
5.25%, 1/01/32
        $   250          $     274,985     
6.00%, 1/01/37
           1,500            1,726,920   
5.50%, 1/01/42
           365             397,302   
 
                         7,094,435   
Washington — 1.1%
                                        
Washington Health Care Facilities Authority, RB, Swedish Health Services, Series A, 6.75%, 5/15/21 (f)
           630             882,334   
Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series A, 5.00%, 10/01/42
           320             360,141   
 
                         1,242,475   
Wisconsin — 3.2%
                                        
Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Credit Group, Series A, 5.00%, 11/15/31
           2,165            2,392,736   
WPPI Energy Wisconsin, Refunding RB, Power Supply System, Series A:
                                        
5.00%, 7/01/29
           120             139,866   
5.00%, 7/01/30
           150             173,981   
5.00%, 7/01/31
           330             381,823   
5.00%, 7/01/37
           395             447,120   
 
                         3,535,526   
Wyoming — 1.6%
                                        
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, 5.25%, 7/15/26
           975             1,104,383   
Wyoming Municipal Power Agency, RB, Series A:
                                        
5.00%, 1/01/42
           95             102,977   
5.38%, 1/01/42
           500             564,140   
 
                         1,771,500   
Total Municipal Bonds — 115.6%
                         129,058,803   

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
Alabama — 0.8%
                                        
Alabama Special Care Facilities Financing Authority-Birmingham, Refunding RB, Ascension Health Senior Credit Group, Series C-2, 5.00%, 11/15/36
           760             839,637   
Arizona — 0.8%
                                        
Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/38
           770             869,470   
California — 7.1%
                                        
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%,
10/01/39 (h)
           855             993,450   
City of Los Angeles California Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, 5.00%, 5/15/40
           1,880            2,123,394   
Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32
           740             833,654   
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33
           553             662,549   
San Francisco City & County Public Utilities Commission, RB, Series B, 5.00%, 11/01/39
           2,970            3,368,307   
 
                         7,981,354   
Colorado — 2.0%
                                        
Colorado Health Facilities Authority, RB, Catholic Health (AGM):
              
Series C-3, 5.10%,10/01/41
           1,210            1,333,601   
Series C-7, 5.00%, 9/01/36
           780             848,991   
 
                         2,182,592   
                     
Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
         Par
(000)
     Value
Connecticut — 3.1%
                                        
Connecticut State Health & Educational Facility Authority, RB, Yale University:
                                        
Series T-1, 4.70%, 7/01/29
        $ 1,580         $   1,777,915     
Series X-3, 4.85%, 7/01/37
           1,541            1,726,054   
 
                         3,503,969   
Illinois — 0.9%
                                        
City of Chicago Illinois Waterworks, Refunding RB, 5.00%, 11/01/42
           920             1,041,427   
Maryland — 1.3%
                                        
Maryland Health & Higher Educational Facilities Authority, RB, Ascension Health, Series B 5.00%, 11/15/51
           1,320            1,476,420   
Massachusetts — 3.5%
                                        
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41
           1,430            1,650,320   
Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41
           1,980            2,210,591   
 
                         3,860,911   
Michigan — 0.9%
                                        
Detroit Water and Sewerage Department, Refunding RB, Senior Lien, Series A:
                                        
5.00%, 7/01/32
           500             546,064   
5.25%, 7/01/39
           425             463,517   
 
                         1,009,581   
New Hampshire — 0.7%
                                        
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (h)
           645             754,519   
New Jersey — 0.8%
                                        
New Jersey Transportation Trust Fund Authority, RB, Transportation, Series B, 5.25%, 6/15/36 (h)
           760             868,330   
New York — 11.5%
                                        
Hudson New York Yards Infrastructure Corp., RB, Senior Series A, 5.75%, 2/15/47
           500             593,573   
New York City Municipal Water Finance Authority, Refunding RB, Series FF-2, 5.50%, 6/15/40
           510             601,771   
New York City Transitional Finance Authority, RB, Future Tax Secured Revenue, Sub-Series E-1, 5.00%, 2/01/42
           780             888,777   
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43
           3,375            3,876,202   
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51
           2,030            2,407,499   
New York State Dormitory Authority, ERB, Series F, 5.00%, 3/15/35
           4,184            4,479,890   
 
                         12,847,712   
Tennessee — 1.2%
                                        
Shelby County Health Educational & Housing Facilities Board, Refunding RB, St. Jude’s Children’s Research Hospital, 5.00%, 7/01/31
           1,280            1,397,120   
Texas — 3.3%
                                        
County of Harris Texas, RB, Senior Lien, Toll Road, Series A, 5.00%, 8/15/38 (h)
           2,140            2,444,244   
Harris County Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41
           1,080            1,227,161   
 
                         3,671,405   
Utah — 1.2%
                                        
City of Riverton Utah Hospital, RB, IHC Health Services, Inc., 5.00%, 8/15/41
           1,155            1,298,466   
Virginia — 1.8%
                                        
University of Virginia, Refunding RB, General, 5.00%, 6/01/40
           1,785            2,041,192   

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 47
 
  
Schedule of Investments (continued)  BlackRock Strategic Municipal Trust (BSD)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
         Par
(000)
     Value
Washington — 3.4%
                                        
Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32
        $   900          $   1,015,793     
State of Washington, GO, Various Purpose, Series E, 5.00%, 2/01/34
           2,400            2,790,288   
 
                         3,806,081   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 44.3%
                         49,450,186   
Total Long-Term Investments
(Cost — $162,339,565) — 159.9%
                         178,508,989   
 
Short-Term Securities
         Shares        Value
Money Market Funds — 2.1%
                                        
FFI Institutional Tax-Exempt Fund, 0.03% (i)(j)
           2,349,913         $   2,349,913     
                     



   
Par
(000)  

   

Pennsylvania — 0.2%
                                        
Beaver County IDA, Refunding RB, VRDN, Pennsylvania Electric Co. Project, Series B, 0.17%, 5/01/13 (k)
        $ 200               200,000   
Total Short-Term Securities
                                        
(Cost — $2,549,913) — 2.3%
                         2,549,913   
Total Investments (Cost—$164,889,478) — 162.2%
                         181,058,902   
Other Assets Less Liabilities — 0.7%
                         835,166   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (24.5)%
                         (27,390,673 )  
VMTP Shares, at Liquidation Value — (38.4)%
                         (42,900,000 )  
Net Assets Applicable to Common Shares— 100.0%
                      $ 111,603,395   

Notes to Schedule of Investments

(a)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b)      
Variable rate security. Rate shown is as of report date.
(c)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty



   
Value
   
Unrealized
Appreciation

First Clearing LLC
        $ 592,597         $ 4,731   
JPMorgan Chase & Co.
        $ 1,149,371         $ 13,879   

(d)      
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(e)      
Non-income producing security.
(f)      
US 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.
(g)      
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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(h)      
All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the Liquidity Provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016 to February 15, 2031, is $2,755,628.
(i)      
Investments in issuers considered to be an affiliate of the Trust during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate



   
Shares
Held at
April 30, 2012

   
Net
Activity

   
Shares
Held at
April 30, 2013

   
Income
   
FFI Institutional Tax-Exempt Fund
     
1,161,303
  
1,188,610
  
2,349,913
  
$517
  

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

     
Financial futures contracts as of April 30, 2013 were as follows:

Contracts Sold


   
Issue
   
Exchange
   
Expiration
   
Notional
Value

   
Unrealized
Depreciation

(67)      
10-Year US Treasury Note
  
Chicago Board of Trade
  
June 2013
     $ 8,935,078         $ (126,838 )  

     
Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
       
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the 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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

See Notes to Financial Statements.

48 ANNUAL REPORT APRIL 30, 2013
 
  
Schedule of Investments (concluded)  BlackRock Strategic Municipal Trust (BSD)
       
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 and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument 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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
       
The following tables summarizes the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Investments:
                                                                                
Long-Term Investments1
                     $ 178,508,989                       $ 178,508,989     
Short-Term Securities
        $ 2,349,913            200,000                        2,549,913   
Total
        $ 2,349,913         $ 178,708,989                     $ 181,058,902   
1 See above Schedule of Investments for values in each state or political subdivision.




   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                                                
Liabilities:
                                                                                
Interest rate contracts
        $     (126,838 )                     —                        —           $    (126,838 )  
 
                                                                          
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Cash
        $   587,881                                 $ 587,881   
Cash pledged for financial futures contracts
           89,000                                    89,000   
Liabilities:
                                                                                
TOB trust certificates
                    $ (27,375,239 )                       (27,375,239 )  
VMTP Shares
                        (42,900,000 )                        (42,900,000 )  
Total
        $ 676,881         $  (70,275,239 )                    $  (69,598,358 )  

There were no transfers between levels during the year ended April 30, 2013.

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 49
 
  
Statements of Assets and Liabilities 

April 30, 2013
         BlackRock
Investment
Quality Municipal
Trust Inc.
(BKN)
     BlackRock
Long-Term
Municipal
Advantage Trust
(BTA)
     BlackRock
Municipal

2020
Term Trust
(BKK)
     BlackRock
Municipal

Income Trust
(BFK)
     BlackRock
Pennsylvania
Strategic

Municipal Trust
(BPS)
     BlackRock
Strategic
Municipal Trust
(BSD)
Assets
Investments at value — unaffiliated1
        $ 433,368,659         $ 271,513,200         $ 499,664,550         $ 1,122,454,159         $ 52,090,311         $ 178,708,989   
Investments at value — affiliated2
           4,475,537            920,424            1,959,251            2,673,310            1,396,790            2,349,913   
Cash
                       655,075                        3,661,671                        587,881   
Cash pledged for financial futures contracts
           206,000                                    428,000            36,000            89,000   
Interest receivable
           5,170,503            3,803,832            6,712,671            15,255,968            757,684            2,442,192   
Investments sold receivable
           505,000            90,000            405,000            390,000                        45,000   
Variation margin receivable
           14,906                                    30,469            2,625            6,281   
Deferred offering costs
           89,949                                    235,543            104,901            75,197   
Prepaid expenses
           47,806            9,680            16,122            35,867            1,615            5,575   
Total assets
           443,878,360            276,992,211            508,757,594            1,145,164,987            54,389,926            184,310,028   
                                                     
Accrued Liabilities
Bank overdraft
                                   5,439                                       
Investments purchased payable
           8,572,343            1,917,096            2,175,000            10,717,386            750,000            1,723,371   
Income dividends payable — Common Shares
           1,372,504            832,179            234,429            3,582,859            144,280            540,563   
Investment advisory fees payable
           123,873            126,710            207,904            553,574            26,224            89,111   
Officer’s and Trustees’ fees payable
           56,732            16,890            43,006            227,674            6,932            12,467   
Interest expense and fees payable
           12,912            91,172            3,310            100,135            2,728            15,434   
Administration fees payable
           53,200                                                               
Other accrued expenses payable
           74,616            67,388            93,341            213,189            39,115            50,448   
Total accrued liabilities
           10,266,180            3,051,435            2,762,429            15,394,817            969,279            2,431,394   
                                                     
Other Liabilities
TOB trust certificates
           27,198,381            101,512,870            3,750,000            170,263,014            5,724,261            27,375,239   
VRDP Shares, at liquidation value of $100,000 per share3,4,5
                                                           16,300,000               
VMTP Shares, at liquidation value of $100,000 per share3,4,5
           125,900,000                                    270,800,000                        42,900,000   
Total other liabilities
           153,098,381            101,512,870            3,750,000            441,063,014            22,024,261            70,275,239   
Total liabilities
           163,364,561            104,564,305            6,512,429            456,457,831            22,993,540            72,706,633   
                                                     
AMPS at Redemption Value
$25,000 per share liquidation preference, plus unpaid dividends3,4,5
                                     161,254,926                                       
Net Assets Applicable to Common Shareholders
        $ 280,513,799         $ 172,427,906         $ 340,990,239         $ 688,707,156         $ 31,396,386         $ 111,603,395   
                                                     
Net Assets Applicable to Common Shareholders Consist of
Paid-in capital5,6,7
        $ 238,383,808         $ 191,705,313         $ 291,109,576         $ 607,521,626         $ 28,549,623         $ 103,518,599   
Undistributed net investment income
           3,309,395            2,046,148            16,594,511            9,529,224            499,650            1,513,919   
Accumulated net realized loss
           (3,664,986 )           (40,640,216 )           (1,502,080 )           (20,901,747 )           (1,895,959 )           (9,471,709 )  
Net unrealized appreciation/depreciation
           42,485,582            19,316,661            34,788,232            92,558,053            4,243,072            16,042,586   
Net Assets Applicable to Common Shareholders
        $ 280,513,799         $ 172,427,906         $ 340,990,239         $ 688,707,156         $ 31,396,386         $ 111,603,395   
Net asset value per Common Share
        $ 16.35         $ 12.85         $ 16.85         $ 15.40         $ 15.45         $ 15.28   
 
1Investments at cost — unaffiliated
        $   390,611,407         $   252,196,539         $   464,876,318         $ 1,029,317,336         $    47,790,857         $   162,539,565   
2Investments at cost — affiliated
        $ 4,475,537         $ 920,424         $ 1,959,251         $ 2,673,310         $ 1,396,790         $ 2,349,913   
3Preferred Shares outstanding
           1,259                        6,450            2,708            163             429    
4Preferred Shares authorized
           7,121                        unlimited             unlimited             unlimited             unlimited    
5Par value per Preferred Shares and Common Shares
        $ 0.01         $ 0.001         $ 0.001         $ 0.001         $ 0.001         $ 0.001   
6Common Shares outstanding
           17,156,316            13,422,247            20,236,628            44,729,826            2,032,115            7,304,904   
7Common Shares authorized
           200 million             unlimited             unlimited             unlimited             unlimited             unlimited    

See Notes to Financial Statements.

50 ANNUAL REPORT APRIL 30, 2013
 
   
Statements of Operations 

Year Ended April 30, 2013
         BlackRock
Investment
Quality Municipal

Trust Inc.
(BKN)
     BlackRock
Long-Term
Municipal
Advantage Trust

(BTA)
     BlackRock
Municipal

2020
Term Trust
(BKK)
     BlackRock
Municipal

Income Trust
(BFK)
     BlackRock
Pennsylvania
Strategic
Municipal Trust

(BPS)
     BlackRock
Strategic
Municipal Trust

(BSD)

    
Investment Income
Interest
        $ 20,219,196         $ 12,212,551         $ 21,325,287         $ 53,168,389         $ 2,272,077         $ 8,259,442   
Income — affiliated
           934             266             1,193            2,617                        517    
Total income
           20,220,130            12,212,817            21,326,480            53,171,006            2,272,077            8,259,959   
                                                     
Expenses
Investment advisory
           1,480,188            1,702,457            2,558,474            6,666,699            320,818            1,076,033   
Administration
           634,366                                                               
Accounting services
           80,418            36,524            70,033            95,213            23,591            51,536   
Professional
           46,742            47,993            67,023            98,157            37,531            54,199   
Remarketing fees on Preferred Shares
                                   256,775                        3,302               
Transfer agent
           37,359            25,894            58,966            63,705            17,815            24,792   
Officer and Trustees
           35,339            17,494            39,582            97,195            4,720            12,572   
Custodian
           25,129            13,255            29,231            46,931            7,033            12,609   
Printing
           7,598            4,393            13,400            18,486            6,873            7,625   
Registration
           3,098            9,248            12,163            5,187            884             9,210   
Miscellaneous
           39,404            12,754            38,914            49,702            30,390            35,527   
Total expenses excluding interest expense, fees and amortization of offering costs
           2,389,641            1,870,012            3,144,561            7,141,275            452,957            1,284,103   
Interest expense, fees and amortization of offering costs1
           1,691,526            769,626            20,313            4,476,367            202,999            738,301   
Total expenses
           4,081,167            2,639,638            3,164,874            11,617,642            655,956            2,022,404   
Less fees waived by Manager
           (1,930 )           (299,329 )           (2,876 )           (6,116 )           (1,005 )           (1,381 )  
Total expenses after fees waived
           4,079,237            2,340,309            3,161,998            11,611,526            654,951            2,021,023   
Net investment income
           16,140,893            9,872,508            18,164,482            41,559,480            1,617,126            6,238,936   
                                                     
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
                                                                                                                        
Investments
           6,166,415            1,242,530            402,157            5,733,234            280,682            979,418   
Financial futures contracts
           (1,215,526 )           (109,261 )                       (2,272,969 )           (106,652 )           (373,476 )  
 
           4,950,889            1,133,269            402,157            3,460,265            174,030            605,942   
Net change in unrealized appreciation/depreciation on:
                                                                                                                        
Investments
           11,954,156            8,034,659            10,245,492            36,450,793            768,764            5,827,160   
Financial futures contracts
           293,494            63,068                        347,233            (23,934 )           25,181   
 
           12,247,650            8,097,727            10,245,492            36,798,026            744,830            5,852,341   
Total realized and unrealized gain
           17,198,539            9,230,996            10,647,649            40,258,291            918,860            6,458,283   
                                                     
Dividends to AMPS Shareholders From
Net investment income
                                   (424,074 )                       (8,984 )              
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations
        $    33,339,432         $    19,103,504         $    28,388,057         $    81,817,771         $     2,527,002         $    12,697,219   
1   Related to TOBs, VRDP Shares and/or VMTP Shares.

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 51
 
   
Statements of Changes in Net Assets 

      BlackRock Investment Quality
Municipal Trust Inc. (BKN)
   
     BlackRock Long-Term
Municipal Advantage Trust (BTA)
      Year Ended April 30,
   
     Year Ended April 30,
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
      2013      2012           2013      2012
Operations
Net investment income
        $ 16,140,893         $ 16,798,943                    $ 9,872,508         $ 10,082,705   
Net realized gain (loss)
           4,950,889            2,436,978                       1,133,269            (5,200,160 )  
Net change in unrealized appreciation/depreciation
           12,247,650            43,206,241                       8,097,727            27,833,443   
Dividends to AMPS shareholders from net investment income
                       (210,347 )                                     
Net increase in net assets applicable to Common Shareholders resulting from operations
           33,339,432            62,231,815                       19,103,504            32,715,988   
                                             
Dividends to Common Shareholders From1
Net investment income
           (16,870,941 )           (17,225,903 )                      (10,248,277 )           (10,262,000 )  
                                             
Capital Share Transactions
Reinvestment of common dividends
           670,480            827,499                       357,617            250,652   
                                             
Net Assets Applicable to Common Shareholders
Total increase in net assets applicable to Common Shareholders
           17,138,971            45,833,411                       9,212,844            22,704,640   
Beginning of year
           263,374,828            217,541,417                       163,215,062            140,510,422   
End of year
        $ 280,513,799         $ 263,374,828                    $ 172,427,906         $ 163,215,062   
Undistributed net investment income
        $ 3,309,395         $ 3,945,593                    $ 2,046,148         $ 2,423,757   


 
               
      BlackRock Municipal 2020
Term Trust (BKK)
   
     BlackRock Municipal
Income Trust (BFK)
      Year Ended April 30,
   
     Year Ended April 30,
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
      2013      2012           2013      2012
Operations
Net investment income
        $ 18,164,482         $ 20,691,348                    $ 41,559,480         $ 42,385,428   
Net realized gain (loss)
           402,157            924,765                       3,460,265            (3,547,068 )  
Net change in unrealized appreciation/depreciation
           10,245,492            28,874,406                       36,798,026            110,198,915   
Dividends to AMPS shareholders from net investment income
           (424,074 )           (397,635 )                                  (430,187 )  
Net increase in net assets applicable to Common Shareholders resulting from operations
           28,388,057            50,092,884                       81,817,771            148,607,088   
                                             
Dividends to Common Shareholders From1
Net investment income
           (18,455,805 )           (15,116,761 )                      (43,007,944 )           (42,872,546 )  
                                             
Capital Share Transactions
Reinvestment of common dividends
                                              1,400,760            1,664,941   
                                             
Net Assets Applicable to Common Shareholders
Total increase in net assets applicable to Common Shareholders
           9,932,252            34,976,123                       40,210,587            107,399,483   
Beginning of year
           331,057,987            296,081,864                       648,496,569            541,097,086   
End of year
        $ 340,990,239         $ 331,057,987                    $ 688,707,156         $ 648,496,569   
Undistributed net investment income
        $ 16,594,511         $ 20,835,010                    $ 9,529,224         $ 10,805,006   
1   Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

52 ANNUAL REPORT APRIL 30, 2013
 
   
Statements of Changes in Net Assets (concluded) 

      BlackRock Pennsylvania
Strategic Municipal Trust (BPS)
   
     BlackRock Strategic
Municipal Trust (BSD)
      Year Ended April 30,
   
     Year Ended April 30,
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
      2013      2012           2013      2012
Operations
Net investment income
        $ 1,617,126         $ 1,820,284                       $ 6,238,936         $ 6,479,504   
Net realized gain (loss)
           174,030            (312,033 )                         605,942            928,043   
Net change in unrealized appreciation/depreciation
           744,830            4,351,575                          5,852,341            14,906,795   
Dividends to AMPS shareholders from net investment income
           (8,984 )           (37,257 )                                     (67,856 )  
Net increase in net assets applicable to Common Shareholders resulting from operations
           2,527,002            5,822,569                          12,697,219            22,246,486   
                                             
Dividends to Common Shareholders From1
Net investment income
           (1,764,339 )           (1,848,975 )                         (6,484,152 )           (6,479,345 )  
                                             
Capital Share Transactions
Reinvestment of common dividends
           54,903            31,115                          81,826            60,332   
                                             
Net Assets Applicable to Common Shareholders
Total increase in net assets applicable to Common Shareholders
           817,566            4,004,709                          6,294,893            15,827,473   
Beginning of year
           30,578,820            26,574,111                          105,308,502            89,481,029   
End of year
        $  31,396,386         $  30,578,820                       $ 111,603,395         $ 105,308,502   
Undistributed net investment income
        $ 499,650         $ 679,703                       $ 1,513,919         $ 1,703,769   
1   Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 53
 
   
Statements of Cash Flows  
Year Ended April 30, 2013
         BlackRock
Investment
Quality Municipal
Trust Inc.
(BKN)
     BlackRock
Long-Term
Municipal
Advantage Trust
(BTA)
     BlackRock
Municipal
Income Trust
(BFK)
     BlackRock
Pennsylvania
Strategic
Municipal Trust
(BPS)
     BlackRock
Strategic
Municipal Trust
(BSD)
Cash Provided by (Used for) Operating Activities

 
  
Net increase in net assets resulting from operations, excluding dividends to AMPS shareholders
        $    33,339,432         $    19,103,504         $    81,817,771         $     2,535,986         $    12,697,219   
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities:
                                                                                                    
(Increase) decrease in interest receivable
           1,207            39,606            (938,934 )           (57,563 )           (156,139 )  
(Increase) decrease in cash pledged for financial futures contracts
           180,000            70,000            313,000            (6,000 )           33,000   
(Increase) decrease in prepaid expenses
           (28,628 )           12,149            13,297            1,974            8,673   
Increase in variation margin receivable
           (14,906 )                       (30,469 )           (2,625 )           (6,281 )  
Increase in investment advisory fees payable
           8,908            20,647            38,199            1,460            5,875   
Increase in interest expense and fees payable
           6,210            7,244            29,863            752             4,795   
Decrease in other accrued expenses payable
           (23,981 )           (31,553 )           (110,137 )           (13,355 )           (32,704 )  
Decrease in variation margin payable
           (36,500 )           (4,500 )           (70,125 )           (2,750 )           (11,500 )  
Increase in Officers and Trustees’ fees payable
           265             405             20,908            1,098            2,066   
Increase in administration fees payable
           3,823                                                   
Net realized and unrealized gain on investments
           (18,120,571 )           (9,277,189 )           (42,184,027 )           (1,049,446 )           (6,806,578 )  
Amortization of premium and accretion of discount on investments
           (2,151,001 )           462,455            (2,032,438 )           159,972            (93,000 )  
Amortization of deferred offering costs
           28,819                        58,910            3,779            28,333   
Proceeds from sales of long-term investments
           158,105,955            41,680,538            162,763,472            7,265,129            33,265,226   
Purchases of long-term investments
           (167,383,763 )           (48,678,626 )           (194,480,106 )           (8,611,404 )           (37,610,698 )  
Net proceeds from sales (purchases) of short-term securities
           35,431            2,494,576            9,507,756            465,810            1,311,390   
Cash provided by (used for) operating activities
           3,950,700            5,899,256            14,716,940            692,817            2,639,677   
                                             
Cash Provided by (Used for) Financing Activities

 
  
Cash receipts from TOB trust certificates
           12,314,885            9,928,328            49,533,184            1,430,000            7,334,965   
Cash payments for TOB trust certificates
                       (5,230,026 )           (18,988,621 )           (260,000 )           (2,984,834 )  
Cash receipts from issuance of VRDP Shares
                                               16,300,000               
Cash payments on redemption of AMPS
                                               (16,325,000 )              
Cash payments for offering costs
                                               (108,680 )              
Cash dividends paid to Common Shareholders
           (16,265,585 )           (9,942,483 )           (41,599,832 )           (1,719,328 )           (6,401,927 )  
Cash dividends paid to AMPS shareholders
                                               (9,809 )              
Cash provided by (used for) financing activities
           (3,950,700 )           (5,244,181 )           (11,055,269 )           (692,817 )           (2,051,796 )  
                                             
Cash

 
  
Net increase (decrease) in cash
                       655,075            3,661,671                        587,881   
Cash at beginning of year
                                                              
Cash at end of year
                    $ 655,075         $ 3,661,671                     $ 587,881   
                                             
Cash Flow Information

 
  
Cash paid during the year for interest
        $ 1,656,497         $ 762,382         $ 4,387,594         $ 198,468         $ 705,173   
                                             
Non-cash Financing Activities

 
  
Capital shares issued in reinvestment of dividends paid to Common Shareholders
        $ 670,480         $ 357,617         $ 1,400,760         $ 54,903         $ 81,826   

See Notes to Financial Statements.

54 ANNUAL REPORT APRIL 30, 2013
 
   
Financial Highlights  BlackRock Investment Quality Municipal Trust Inc. (BKN)
         Year Ended April 30,
   
Period
November 1,
2008 to
April 30,
2009
         Year Ended
October 31,
2008
         2013      2012      2011      2010     
Per Share Operating Performance
Net asset value, beginning of period
        $ 15.39         $ 12.75         $ 13.68         $ 11.63         $ 10.64         $ 14.73   
Net investment income1
           0.94            0.98            1.04            1.07            0.50            1.08   
Net realized and unrealized gain (loss)
           1.00            2.68            (0.93 )           1.96            0.94            (3.97 )  
Dividends to AMPS shareholders from net investment income
                       (0.01 )           (0.03 )           (0.03 )           (0.05 )           (0.31 )  
Net increase (decrease) from investment operations
           1.94            3.65            0.08            3.00            1.39            (3.20 )  
Dividends to Common Shareholders from net investment income2
           (0.98 )           (1.01 )           (1.01 )           (0.95 )           (0.40 )           (0.89 )  
Net asset value, end of period
        $ 16.35         $ 15.39         $ 12.75         $ 13.68         $ 11.63         $ 10.64   
Market price, end of period
        $ 16.11         $ 15.75         $ 13.08         $ 14.19         $ 11.35         $ 10.25   
                                                     
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
           12.89 %           29.46 %           0.49 %           26.55 %           13.63 %4           (22.93 )%   
Based on market price
           8.69 %           29.15 %           (0.61 )%            34.50 %           15.12 %4           (33.11 )%   
                                                     
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
           1.48 %           1.26 %5           1.08 %5           1.10 %5           1.29 %5,6           1.19 %5  
Total expenses after fees waived and paid indirectly
           1.48 %           1.26 %5           1.08 %5           1.10 %5           1.28 %5,6           1.17 %5  
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7
           0.87 %           0.99 %5,8           1.04 %5           1.06 %5           1.20 %5,6           1.07 %5  
Net investment income
           5.87 %           6.94 %5           7.83 %5           8.29 %5           9.53 %5,6           7.84 %5  
Dividends to AMPS shareholders
                       0.09 %           0.23 %           0.26 %           0.87 %6           2.28 %  
Net investment income to Common Shareholders
           5.87 %           6.85 %           7.60 %           8.03 %           8.66 %,6           5.56 %  
                                                     
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
        $ 280,514         $ 263,375         $ 217,541         $ 232,471         $ 196,811         $ 180,188   
AMPS outstanding at $25,000 liquidation preference, end of period (000)
                                $   125,950         $   125,950         $   126,950         $   126,950   
VMTP Shares outstanding at $100,000 liquidation value, end of period (000)
        $   125,900         $   125,900                                                   
Portfolio turnover
           33 %           47 %           38 %           43 %           26 %           26 %  
Asset coverage per AMPS at $25,000 liquidation preference, end of period
                                $ 68,183         $ 71,147         $ 63,762         $ 60,495   
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period
        $ 322,807         $ 309,194                                                   
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4   Aggregate total investment return.
5   Do not reflect the effect of dividends to AMPS shareholders.
6   Annualized.
7   Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively.
8   For the year ended April 30, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs and remarketing fees was 0.94%.

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 55
 
   
Financial Highlights   BlackRock Long-Term Municipal Advantage Trust (BTA)
         Year Ended April 30,
   
Period
November 1,
2008 to
April 30,
2009
         Year Ended
October 31,
2008
         2013      2012      2011      2010     
Per Share Operating Performance
Net asset value, beginning of period
        $ 12.19         $ 10.51         $ 11.27         $ 9.52         $ 8.57         $ 13.72   
Net investment income1
           0.74            0.75            0.76            0.75            0.34            0.81   
Net realized and unrealized gain (loss)
           0.68            1.70            (0.79 )           1.69            0.94            (5.30 )  
Net increase (decrease) from investment operations
           1.42            2.45            (0.03 )           2.44            1.28            (4.49 )  
Dividends from net investment income2
           (0.76 )           (0.77 )           (0.73 )           (0.69 )           (0.33 )           (0.66 )  
Net asset value, end of period
        $ 12.85         $ 12.19         $ 10.51         $ 11.27         $ 9.52         $ 8.57   
Market price, end of period
        $ 12.50         $ 12.27         $ 10.20         $ 10.77         $ 8.79         $ 8.40   
                                                     
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
           11.95 %           24.09 %           (0.18 )%            26.81 %           15.78 %4           (33.64 )%   
Based on market price
           8.19 %           28.70 %           1.37 %           31.25 %           9.06 %4           (26.49 )%   
                                                     
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
           1.55 %           1.69 %           1.81 %           1.80 %           2.95 %5           4.00 %  
Total expenses after fees waived and before fees paid indirectly
           1.37 %           1.42 %           1.43 %           1.40 %           2.55 %5           3.60 %  
Total expenses after fees waived and paid indirectly
           1.37 %           1.42 %           1.43 %           1.40 %           2.55 %5           3.60 %  
Total expenses after fees waived and paid indirectly and excluding interest expense and fees6
           0.92 %           0.86 %           0.78 %           0.75 %           0.82 %5           0.83 %  
Net investment income
           5.80 %           6.60 %           6.97 %           7.07 %           7.88 %5           6.56 %  
                                                     
Supplemental Data
Net assets, end of period (000)
        $   172,428         $   163,215         $   140,510         $   150,357         $   127,079         $   114,382   
Portfolio turnover
           16 %           26 %           12 %           30 %           15 %           16 %  
1   Based on average shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4   Aggregate total investment return.
5   Annualized.
6   Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.

See Notes to Financial Statements.

56 ANNUAL REPORT APRIL 30, 2013
 
   
Financial Highlights  BlackRock Municipal 2020 Term Trust (BKK)
         Year Ended April 30,
   
Period
January 1,
2009 to
April 30,
2009
         Year Ended
December 31,
2008
         2013      2012      2011      2010     
Per Share Operating Performance
Net asset value, beginning of period
        $ 16.36         $ 14.63         $ 14.51         $ 12.04         $ 10.55         $ 14.79   
Net investment income1
           0.90            1.02            1.06            1.10            0.35            1.09   
Net realized and unrealized gain (loss)
           0.52            1.48            (0.15 )           2.16            1.41            (4.28 )  
Dividends to AMPS shareholders from net investment income
           (0.02 )           (0.02 )           (0.04 )           (0.04 )           (0.02 )           (0.30 )  
Net increase (decrease) from investment operations
           1.40            2.48            0.87            3.22            1.74            (3.49 )  
Dividends to Common Shareholders from net investment income2
           (0.91 )           (0.75 )           (0.75 )           (0.75 )           (0.25 )           (0.75 )  
Net asset value, end of period
        $ 16.85         $ 16.36         $ 14.63         $ 14.51         $ 12.04         $ 10.55   
Market price, end of period
        $ 16.64         $ 16.06         $ 15.06         $ 14.89         $ 12.70         $ 10.57   
                                                     
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
           8.72 %           17.27 %           5.96 %           26.97 %           16.39 %4           (24.57 )%   
Based on market price
           9.37 %           11.83 %           6.29 %           23.52 %           22.54 %4           (17.81 )%   
                                                     
Ratio to Average Net Assets Applicable to Common Shareholders
Total expenses5
           0.94 %           0.99 %           1.03 %           1.06 %           1.23 %6           1.12 %  
Total expenses after fees waived and paid indirectly5
           0.94 %           0.99 %           1.03 %           1.06 %           1.23 %6           1.12 %  
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and income tax5,7
           0.93 %8           0.98 %8           1.02 %           1.05 %           1.21 %6           1.10 %  
Net investment income5
           5.38 %           6.57 %           7.26 %           8.08 %           9.28 %6           8.01 %  
Dividends to AMPS shareholders
           0.13 %           0.13 %           0.24 %           0.28 %           0.59 %6           2.18 %  
Net investment income to Common Shareholders
           5.25 %           6.44 %           7.02 %           7.80 %           8.69 %6           5.83 %  
                                                     
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
        $ 340,990         $ 331,058         $ 296,082         $ 293,549         $ 243,571         $ 213,472   
AMPS outstanding at $25,000 liquidation preference, end of period (000)
        $   161,250         $   173,850         $   173,850         $   173,850         $   173,850         $   173,850   
Portfolio turnover
           14 %           18 %           9 %           6 %           1 %           5 %  
Asset coverage per AMPS at $25,000 liquidation preference, end of period
        $ 77,867         $ 72,607         $ 67,579         $ 67,215         $ 60,027         $ 55,703   
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4   Aggregate total investment return.
5   Do not reflect the effect of dividends to AMPS shareholders.
6   Annualized.
7   Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
8   For the years ended April 30, 2013 and April 30, 2012, the total expense ratio after fees waived and excluding interest expense, fees and remarketing fees was 0.85% and 0.90%, respectively.

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 57
 
   
Financial Highlights  BlackRock Municipal Income Trust (BFK)
         Year Ended April 30,
   
Period
November 1,
2008 to
April 30,
2009
         Year Ended
October 31,
2008
         2013      2012      2011      2010     
Per Share Operating Performance
Net asset value, beginning of period
        $ 14.53         $ 12.16         $ 13.23         $ 10.74         $ 10.08         $ 14.55   
Net investment income1
           0.93            0.95            1.01            1.03            0.52            1.12   
Net realized and unrealized gain (loss)
           0.90            2.39            (1.11 )           2.42            0.58            (4.38 )  
Dividends to AMPS shareholders from net investment income
                       (0.01 )           (0.02 )           (0.03 )           (0.03 )           (0.30 )  
Net increase (decrease) from investment operations
           1.83            3.33            (0.12 )           3.42            1.07            (3.56 )  
Dividends to Common Shareholders from net investment income2
           (0.96 )           (0.96 )           (0.95 )           (0.93 )           (0.41 )           (0.91 )  
Net asset value, end of period
        $ 15.40         $ 14.53         $ 12.16         $ 13.23         $ 10.74         $ 10.08   
Market price, end of period
        $ 15.40         $ 14.83         $ 12.35         $ 13.44         $ 11.10         $ 8.75   
                                                     
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
           12.84 %           28.24 %           (1.04 )%            32.75 %           11.15 %4           (25.69 )%   
Based on market price
           10.55 %           28.87 %           (1.07 )%            30.49 %           32.34 %4           (41.05 )%   
                                                     
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
           1.71 %           1.45 %5           1.26 %5           1.26 %5           1.44 %5,6           1.38 %5  
Total expenses after fees waived and paid indirectly
           1.71 %           1.45 %5           1.24 %5           1.15 %5           1.26 %5,6           1.15 %5  
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7
           1.05 %           1.14 %5,8           1.14 %5           1.07 %5           1.15 %5,6           0.98 %5  
Net investment income
           6.13 %           7.06 %5           7.84 %5           8.37 %5           10.48 %5,6           8.34 %5  
Dividends to AMPS shareholders
                       0.07 %           0.20 %           0.23 %           0.70 %6           2.19 %  
Net investment income to Common Shareholders
           6.13 %           6.99 %           7.64 %           8.14 %           9.78 %6           6.15 %  
                                                     
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
        $   688,707         $   648,497         $   541,097         $   587,250         $   474,814         $   445,289   
AMPS outstanding at $25,000 liquidation preference, end of period (000)
                                $ 270,875         $ 270,875         $ 293,125         $ 293,125   
VMTP Shares outstanding at $100,000 liquidation value, end of period (000)
        $ 270,800         $ 270,800                                                   
Portfolio turnover
           13 %           17 %           18 %           32 %           11 %           13 %  
Asset coverage per AMPS at $25,000 liquidation preference, end of period
                                $ 74,941         $ 79,201         $ 65,498         $ 62,989   
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period
        $ 354,323         $ 339,474                                                   
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4   Aggregate total investment return.
5   Do not reflect the effect of dividends to AMPS shareholders.
6   Annualized.
7   Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively.
8   For the year ended April 30, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs and remarketing fees was 1.10%.

See Notes to Financial Statements.

58 ANNUAL REPORT APRIL 30, 2013
 
   
Financial Highlights  BlackRock Pennsylvania Strategic Municipal Trust (BPS)
         Year Ended April 30,
   
Period
January 1,
2009 to
April 30,
2009
         Year Ended
December 31,
2008
         2013      2012      2011      2010     
Per Share Operating Performance
Net asset value, beginning of period
        $ 15.07         $ 13.11         $ 13.86         $ 11.87         $ 10.77         $ 14.12   
Net investment income1
           0.80            0.90            0.98            0.92            0.27            0.89   
Net realized and unrealized gain (loss)
           0.45            1.99            (0.81 )           1.83            1.03            (3.36 )  
Dividends to AMPS shareholders from net investment income
           (0.00 )2           (0.02 )           (0.03 )           (0.04 )           (0.02 )           (0.26 )  
Net increase (decrease) from investment operations
           1.25            2.87            0.14            2.71            1.28            (2.73 )  
Dividends to Common Shareholders from net investment income3
           (0.87 )           (0.91 )           (0.89 )           (0.72 )           (0.18 )           (0.62 )  
Net asset value, end of period
        $ 15.45         $ 15.07         $ 13.11         $ 13.86         $ 11.87         $ 10.77   
Market price, end of period
        $ 15.04         $ 15.27         $ 12.99         $ 13.88         $ 9.85         $ 8.42   
                                                     
Total Investment Return Applicable to Common Shareholders4
Based on net asset value
           8.45 %           22.57 %           1.07 %           23.80 %           12.28 %5           (19.63 )%   
Based on market price
           4.19 %           25.34 %           0.00 %           49.41 %           19.18 %5           (34.53 )%   
                                                     
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses6
           2.09 %           1.72 %           1.56 %           1.60 %           1.63 %7           1.61 %  
Total expenses after fees waived and paid indirectly6
           2.09 %           1.71 %           1.55 %           1.59 %           1.61 %7           1.45 %  
Total expenses after fees waived and paid indirectly and excluding interest expense, fees, and amortization of offering costs6,8
           1.44 %9           1.58 %9           1.43 %           1.57 %           1.61 %7           1.42 %  
Net investment income6
           5.16 %           6.30 %           7.28 %           6.94 %           7.38 %7           6.82 %  
Dividends to AMPS shareholders
           0.03 %           0.13 %           0.25 %           0.28 %           0.56 %           2.17 %  
Net investment income to Common Shareholders
           5.13 %           6.17 %           7.03 %           6.66 %           6.82 %7           4.65 %  
                                                     
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
        $    31,396         $    30,579         $    26,574         $    28,038         $    24,023         $    21,799   
AMPS outstanding at $25,000 liquidation preference, end of year (000)
                    $ 16,325         $ 16,325         $ 16,325         $ 16,825         $ 16,825   
VRDP Shares outstanding at $100,000 liquidation preference, end of year (000)
        $ 16,300                                                               
Portfolio turnover
           14 %           34 %           17 %           19 %           8 %           45 %  
Asset coverage per AMPS at $25,000 liquidation preference, end of year
                    $ 71,828         $ 65,697         $ 67,939         $ 60,696         $ 57,399   
Asset coverage per VRDP at $100,000 liquidation value, end of year
        $ 292,616                                                               
1   Based on average Common Shares outstanding.
2   Amount is less than $(0.005) per share.
3   Dividends are determined in accordance with federal income tax regulations.
4   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
5   Aggregate total investment return.
6   Do not reflect the effect of dividends to AMPS shareholders.
7   Annualized. Certain expenses incurred during the period January 1, 2009 to April 30, 2009 have been included in the ratio but not annualized. If these expenses were annualized, the annualized ratio of total expenses, total expenses after fees waived and paid indirectly, total expenses after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, net investment income and net investment income to Common Shareholders would have been 1.91%, 1.89%, 1.89%, 7.09% and 6.53%, respectively.
8   Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
9   For the years ended April 30, 2013 and April 30, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs and remarketing fees was 1.43% and 1.52%, respectively.

See Notes to Financial Statements.

ANNUAL REPORT APRIL 30, 2013 59
 
   
Financial Highlights  BlackRock Strategic Municipal Trust (BSD)
         Year Ended April 30,
   
Period
January 1,
2009 to
April 30,
2009
    Year Ended December 31, 2008
         2013      2012      2011      2010          
Per Share Operating Performance
Net asset value, beginning of period
        $ 14.43         $ 12.27         $ 13.00         $ 10.95         $ 9.90         $ 14.27   
Net investment income1
           0.85            0.89            0.94            0.96            0.32            1.02   
Net realized and unrealized gain (loss)
           0.89            2.17            (0.77 )           1.96            1.00            (4.32 )  
Dividends to AMPS shareholders from net investment income
                       (0.01 )           (0.02 )           (0.03 )           (0.02 )           (0.26 )  
Net increase (decrease) from investment operations
           1.74            3.05            0.15            2.89            1.30            (3.56 )  
Dividends to Common Shareholders from net investment income2
           (0.89 )           (0.89 )           (0.88 )           (0.84 )           (0.25 )           (0.81 )  
Net asset value, end of period
        $ 15.28         $ 14.43         $ 12.27         $ 13.00         $ 10.95         $ 9.90   
Market price, end of period
        $ 14.97         $ 14.38         $ 11.88         $ 12.95         $ 10.15         $ 8.19   
                                                     
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
           12.29 %           25.65 %           1.19 %           27.36 %           13.44 %4           (25.70 )%   
Based on market price
           10.40 %           29.32 %           (1.65 )%            36.87 %           27.11 %4           (37.17 )%   
                                                     
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
           1.84 %           1.55 %5           1.39 %5           1.36 %5           1.49 %5,6           1.54 %5  
Total expenses after fees waived and paid indirectly
           1.84 %           1.55 %5           1.39 %5           1.36 %5           1.48 %5,6           1.45 %5  
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7
           1.17 %           1.23 %5,8           1.28 %5           1.26 %5           1.40 %5,6           1.23 %5  
Net investment income
           5.68 %           6.64 %5           7.38 %5           7.91 %5           9.48 %5,6           8.04 %5  
Dividends to AMPS shareholders
                       0.07 %           0.19 %           0.22 %           0.49 %           2.02 %  
Net investment income to Common Shareholders
           5.68 %           6.57 %           7.19 %           7.69 %           8.99 %6           6.02 %  
                                                     
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
        $   111,603         $   105,309         $    89,481         $    94,736         $    79,820         $    72,188   
AMPS outstanding at $25,000 liquidation preference, end of period (000)
                                $ 42,975         $ 42,975         $ 47,750         $ 47,750   
VMPT Shares outstanding at $100,000 liquidation value, end of period (000)
        $ 42,900         $ 42,900                                                   
Portfolio turnover
           18 %           30 %           20 %           32 %           6 %           17 %  
Asset coverage per AMPS at $25,000 liquidation preference, end of period
                                $ 77,055         $ 80,113         $ 66,791         $ 62,803   
Asset coverage per VMPT Shares at $100,000 liquidation value, end of period
        $ 360,148         $ 345,474                                                   
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4   Aggregate total investment return.
5   Do not reflect the effect of dividends to AMPS shareholders.
6   Annualized. Certain expenses incurred during the period January 1, 2009 to April 30, 2009 have been included in the ratio but not annualized. If these expenses were annualized, the annualized ratio of total expenses, total expenses after fees waived and paid indirectly, total expenses after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, net investment income and net investment income to Common Shareholders would have been 1.91%, 1.89%, 1.89%, 7.09% and 6.53%, respectively.
7   Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively.
8   For the year ended April 30, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs and remarketing fees was 1.19%.

See Notes to Financial Statements.

60 ANNUAL REPORT APRIL 30, 2013
 
   
Notes to Financial Statements  

1. Organization and Significant Accounting Policies:

BlackRock Investment Quality Municipal Trust Inc. (“BKN”) is organized as a Maryland corporation. BlackRock Long-Term Municipal Advantage Trust (“BTA”), BlackRock Municipal 2020 Term Trust (“BKK”), BlackRock Municipal Income Trust (“BFK”), BlackRock Pennsylvania Strategic Municipal Trust (“BPS”) and BlackRock Strategic Municipal Trust (“BSD”) (collectively, together with BKN, the “Trusts” or individually as the “Trust”) are organized as Delaware statutory trusts. BKN, BKK, BFK and BSD are registered under the 1940 Act, as amended (the “1940 Act”), as diversified, closed-end management investment companies. BTA and BPS are registered under the 1940 Act as non-diversified, closed-end management investment companies. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reported period. Actual results could differ from those estimates. The Board of Directors and the Boards of Trustees of the Trusts are collectively referred to throughout this report as the “Board of Trustees” or the “Board” and the directors/trustees thereof are collectively referred to throughout this report as “Trustees”. The Trusts determine, and make available for publication the NAVs of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Trusts:

Valuation: US 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 value of their financial instruments at market value using independent dealers or pricing services under policies approved by each Trust’s Board. 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 provide oversight of the pricing function for the Trusts for all financial instruments.

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. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

In the event that 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 Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement, which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of each Trusts’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Zero-Coupon Bonds: The Trusts may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations, which provide for regular interest payments.

Forward Commitments and When-Issued Delayed Delivery Securities: The 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. The Trusts 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, the Trusts may be required to pay more at settlement than the security is worth. In addition, the Trusts are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Trusts assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by

ANNUAL REPORT APRIL 30, 2013 61
 
  
Notes to Financial Statements (continued)  


the counterparty, the Trusts’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.

Municipal Bonds Transferred to TOBs: The Trusts leverage their assets through the use of TOBs. A TOB is a special purpose entity established by a third party sponsor, into which a trust, or an agent on behalf of a trust, transfers municipal bonds into a trust (“TOB Trust”). Other trusts managed by the investment advisor may also contribute municipal bonds to a TOB into which a Trust has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, (“TOB Trust Certificates”), which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. If multiple Trusts participate in the same TOB, the rights and obligations under the TOB Residual will be shared among the Trusts ratably in proportion to their participation.

The TOB Residuals held by a Trust include the right of a Trust (1) to cause the holders of a proportional share of the TOB Trust certificates to tender their certificates at par plus accrued interest upon the occurrence of certain mandatory tender events defined in the TOB agreements, and (2) to transfer, subject to a specified number of days’ prior notice, a corresponding share of the municipal bonds from the TOB to a Trust. The TOB may also be collapsed without the consent of a Trust, as the TOB Residual holder, upon the occurrence of certain termination events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond and a judgment or ruling that interest on the municipal bond is subject to federal income taxation. Upon the occurrence of a termination event, the TOB would generally be liquidated in full with the proceeds typically applied first to any accrued fees owed to the trustee, remarketing agent and liquidity provider, and then to the holders of the TOB Trust Certificates up to par plus accrued interest owed on the TOB Trust Certificates, with the balance paid out to the TOB Residual holder. During the year ended April 30, 2013, no TOBs in which the Trusts participated were terminated without the consent of the Trusts.

The cash received by the TOB from the sale of the TOB Trust Certificates, less transaction expenses, is paid to a Trust. The Trust typically invests the cash received in additional municipal bonds. Each Trust’s transfer of the municipal bonds to a TOB Trust is accounted for as a secured borrowing; therefore, the municipal bonds deposited into a TOB are presented in the Trusts’ Schedules of Investments and the TOB Trust Certificates are shown in other liabilities in the Statements of Assets and Liabilities. The carrying amount of the Trust’s payable to the holder of the TOB Trust Certificates, as reported in Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

The Trusts may invest in TOBs on either a non-recourse or recourse basis. TOB Trusts are typically supported by a liquidity facility provided by a 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 from the Liquidity Provider of par plus accrued interest on any business day prior to the occurrence of the termination events described above. When a Trust invests in TOBS on a non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event, the Liquidity Provider will typically liquidate all or a portion of the municipal securities held in the TOB Trust and then fund, on a net basis, the balance, if any, of the amount owed under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Trust invests in a TOB on a recourse basis, the Trust will typically enter into a reimbursement agreement with the Liquidity Provider where the Trust is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a Trust investing in a recourse TOB will bear the risk of loss with respect to any Liquidation Shortfall. If multiple Trusts participate in any such TOB, these losses will be shared ratably in proportion to their participation. The recourse TOB Trusts, if any, are identified in the Schedules of Investments.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. The TOB Trust Certificates have interest rates that generally reset weekly and their holders have the option to tender such certificates to the TOB for redemption at par at each reset date. At April 30, 2013, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for TOB Trust Certificates and the range of interest rates on the liability for TOB Trust Certificates were as follows:




   
Underlying
Municipal
Bonds
Transferred
to TOBs

   
Liability
for TOB Trust
Certificates

   
Range of
Interest Rates

BKN
        $ 49,389,781         $ 27,198,381      
0.18 — 0.27%
BTA
        $ 164,957,388         $ 101,512,870      
0.22 — 0.47%
BKK
        $ 5,836,950         $ 3,750,000       0.24%    
BFK
        $ 304,072,049         $ 170,263,014      
0.18 — 0.47%
BPS
        $ 12,125,312         $ 5,724,261      
0.22 — 0.28%
BSD
        $ 49,450,186         $ 27,375,239      
0.18 — 0.47%

For the year ended April 30, 2013, the Trusts’ average TOB Trust Certificates outstanding and the daily weighted average interest rate, including fees, were as follows:




   
Average
TOB Trust
Certificates
Outstanding

   
Daily
Weighted
Average
Interest
Rate

BKN
    $
 21,944,820
  
0.72%
BTA
    $
 96,451,685
  
0.80%
BKK
    $
  3,750,000
  
0.54%
BFK
    $
161,964,068
  
0.75%
BPS
    $
  5,844,768
  
0.71%
BSD
    $
 26,537,357
  
0.75%
62 ANNUAL REPORT APRIL 30, 2013
 
  
Notes to Financial Statements (continued)  

Should short-term interest rates rise, the Trusts’ investments in TOBs 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.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Trust either deliver collateral or segregate assets in connection with certain investments (e.g., TOBs, financial futures contracts), each Trust will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, a Trust engaging in such transactions may have requirements to deliver/deposit securities to/with an exchange or broker-dealer as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 7.

Income Taxes: It is the Trusts’ 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 their taxable income to their shareholders. Therefore, no federal income tax provision is required.

Each Trust files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trusts’ US federal tax returns remains open for each of the four years ended April 30, 2013. 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 does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In December 2011, the Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or similar agreements, which are eligible for offset in the Statements of Assets and Liabilities and will require an entity to disclose both gross and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Trust’s financial statement disclosures.

Deferred Compensation Plan: Under the deferred compensation plan (the “Plan”) approved by each Trust’s Board, the independent Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain other BlackRock Closed-End Funds 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 other BlackRock Closed-End Funds.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Deferred compensation liabilities are included in Officer’s and Trustees’ 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.

Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Trusts have an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. 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 economically hedge their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange or OTC.

Financial Futures Contracts: The Trusts purchase and/or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial 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 at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the

ANNUAL REPORT APRIL 30, 2013 63
 
  
Notes to Financial Statements (continued)  


settlement date. Upon entering into a financial 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. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities as cash pledged for financial futures contracts. 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 value of the contract. Such receipts or payments are known as variation margin and are recorded by the Trusts as unrealized appreciation or depreciation. When the contract is closed, the Trusts record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Options: The Trusts purchase and write call and put options to increase or decrease their exposure to underlying instruments (including equity risk, interest rate risk and/or commodity price risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Trusts purchase (write) an option, an amount equal to the premium paid (received) by the Trusts is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Trusts enter into a closing transaction), the Trusts realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Trusts write a call option, such option is “covered,” meaning that the Trusts hold the underlying instrument subject to being called by the option counterparty. When the Trusts write a put option, such option is covered by cash in an amount sufficient to cover the obligation.

In purchasing and writing options, the Trusts bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the Trusts may not be able to enter into a closing transaction due to an illiquid market. Exercise of an option written could result in the Trusts purchasing or selling a security at a price different from the current market value.

A derivative contract may suffer a mark 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. A Trust’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by such Trust. For OTC options purchased, each Trust bears the risk of loss of the amount of the premiums paid plus the positive change in market values net of any collateral held by such Trust should the counterparty fail to perform under the contracts. Options written by the Trusts do not typically give rise to counterparty credit risk, as options written generally obligate the Trusts, and not, the counterparty to perform. With exchange traded purchased options and futures and centrally cleared swaps, there is minimal counterparty credit risk to the Trusts since the exchange’s clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. However, credit risk still exists in exchange traded futures with respect to initial and variation margin that is held in a broker’s customer accounts. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, US bankruptcy laws will typically allocate that shortfall on a pro rata basis across all the broker’s customers, potentially resulting in losses to the Trusts.

Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearinghouse for exchange traded and centrally cleared derivatives (financial futures contracts). Brokers can ask for margining in excess of the minimum in certain circumstances. To the extent amounts due to the Trusts from their counterparties are not fully collateralized, contractually or otherwise, the Trusts bear the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. Each Trust attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

64 ANNUAL REPORT APRIL 30, 2013
 
  
Notes to Financial Statements (continued)  

Derivative Financial Instruments Categorized by Risk Exposure:

Fair Values of Derivative Financial Instruments as of April 30, 2013

         Liability Derivatives
   
        
   
BKN
   
BFK
   
BPS
   
BSD



   
Statements of Assets and Liabilities Location
   
Value
   
Interest rate contracts:
Financial futures contracts
     
Net unrealized depreciation1
     $ (271,670 )     
$(578,770)
  
$(56,382)
  
$(126,838)
1   Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.
The Effect of Derivative Financial Instruments in the Statements of Operations Year Ended April 30, 2013

 
         Net Realized Loss From
   
         BKN
   
BTA
   
BFK
   
BPS
   
BSD
Interest rate contracts:
                                                                                                    
Financial futures contracts
        $ (1,215,526 )        $ (109,261 )        $ (2,272,969 )        $ (106,652 )        $ (373,476 )  
Options2
           (89,808 )                                                  
Total
        $ (1,305,334 )        $    (109,261 )        $  (2,272,969 )        $    (106,652 )        $    (373,476 )  
2   Options purchased are included in the net realized gain (loss) from investments.
         Net Change in Unrealized Appreciation/Depreciation on
   
         BKN
   
BTA
   
BFK
   
BPS
   
BSD
Interest rate contracts:
                                                                                                    
Financial futures contracts
        $    293,494         $      63,068         $     347,233         $    (23,934 )        $      25,181   

For the year ended April 30, 2013, the average quarterly balances of outstanding derivative financial instruments were as follows:

           BKN
   
BTA
   
BFK
   
BPS
   
BSD
Financial futures contracts:
                                                                                                    
Average number of contracts sold
           31             9 3           81             7             17    
Average notional value of contracts sold
        $  4,394,496         $   1,174,781 3        $ 10,835,449         $     933,516         $   2,233,770   
Options:
                                                                                                    
Average number of options contracts purchased
           142 3                                                  
Average notional value of option contracts purchased
        $ 22,188 3                                                  
3   Average contract amount shown due to limited activity.

  

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Trusts’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Trust’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Trust. For such services, each Trust pays the Manager a monthly fee based on a percentage of each Trust’s average weekly net assets at the following annual rates:

BKN
           0.35 %  
BTA
           1.00 %  
BKK
           0.50 %  
BFK
           0.60 %  
BPS
           0.60 %  
BSD
           0.60 %  
ANNUAL REPORT APRIL 30, 2013 65
 
  
Notes to Financial Statements (continued)  

Average weekly net assets for all of the Trusts, except BTA, is the average weekly value of each Trust’s total assets minus the sum of its accrued liabilities. For BTA, average weekly net assets is the average weekly value of the Trust’s total assets minus the sum of its total liabilities.

The Manager entered into a sub-advisory agreement with BlackRock Financial Management, LLC (“BFM”), an affiliate of the Manager. The Manager pays BFM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Trust to the Manager.

The Manager voluntarily agreed to waive a portion of the investment advisory fees or other expenses as a percentage of its average daily net assets as follows:




   
Through
   
Rate
BTA
     
January 31, 2013
  
0.20%
 
     
January 31, 2014
  
0.10%

For the year ended April 30, 2013, the Manager waived the following amounts, which are included in fees waived by advisor in the Statements of Operations:

BTA
        $ 298,687   

BKN has an Administration Agreement with the Manager. The Administration fee paid to the manager is computed at an annual rate of 0.15% of the Trust’s average weekly net assets including proceeds from the issuance of Preferred Shares and TOBs.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Trust’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by Manager in the Statements of Operations. For the year ended April 30, 2013, the amounts waived were as follows:

BKN
        $ 1,930   
BTA
        $ 642    
BKK
        $ 2,876   
BFK
        $ 6,116   
BPS
        $ 1,005   
BSD
        $ 1,381   

Certain officers and/or Trustees of the Trusts are officers and/or directors 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 Officer and Trustees in the Statements of Operations.

4. Investments:

Purchases and sales of investments excluding short-term securities for the year ended April 30, 2013, were as follows:




   
Purchases
   
Sales
BKN
        $ 146,702,259         $ 138,053,061   
BTA
        $ 46,390,393         $ 41,300,538   
BKK
        $ 68,973,471         $ 80,486,370   
BFK
        $ 182,060,282         $ 145,109,773   
BPS
        $ 8,684,314         $ 7,258,145   
BSD
        $ 36,315,390         $ 31,431,757   

5. Income Tax Information:

US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of April 30, 2013 attributable to amortization methods on fixed income securities, expenses characterized as distributions non-deductible expenses, income recognized from pass-through entities, the expiration of capital loss carryforwards, the retention of tax-exempt income and distributions received from a regulated investment company were reclassified to the following accounts:




   
BKN
   
BTA
   
BKK
   
BFK
   
BPS
   
BSD
Paid-in capital
        $ (93,912 )                    $ 3,525,000         $ (172,873 )        $ (63,696 )        $ (55,399 )  
Undistributed net investment income
        $ 93,850         $ (1,840 )        $ (3,525,102 )        $ 172,682         $ (23,856 )        $ 55,366     
Accumulated net realized loss
        $ 62          $ 1,840         $ 102          $ 191          $ 87,552         $ 33    

The tax character of distributions paid during the fiscal years ended April 30, 2013 and April 30, 2012 was as follows:




   

   
BKN
   
BTA
   
BKK
   
BFK
   
BPS
   
BSD
Tax-exempt income1
           4/30/2013         $ 18,244,178         $ 10,246,542         $ 18,878,656         $ 46,079,263         $ 1,905,658         $ 6,971,833     
 
           4/30/2012            17,988,636            10,260,553            15,514,396            44,467,311            1,886,232            6,740,189   
Ordinary income2
           4/30/2013            80,501            1,735            1,223            52,489            25,240            7,014   
 
           4/30/2012                        1,447                        25,961                           
Total
           4/30/2013         $ 18,324,679         $ 10,248,277         $ 18,879,879         $ 46,131,752         $ 1,930,898         $ 6,978,847   
 
           4/30/2012         $ 17,988,636         $ 10,262,000         $ 15,514,396         $ 44,493,272         $ 1,886,232         $ 6,740,189   
1   The Trusts designate these amounts paid during the fiscal year ended April 30, 2013 as exempt-interest dividends.
2   Ordinary income consists primarily of taxable income recognized from market discount. Additionally, all ordinary income distributions are comprised of interest related dividends for non-US residents and are eligible for exemption from US withholding tax for nonresident aliens and foreign corporations.
66 ANNUAL REPORT APRIL 30, 2013
 
  
Notes to Financial Statements (continued)  

As of April 30, 2013, the tax components of accumulated net earnings (losses) were as follows:




   
BKN
   
BTA
   
BKK
   
BFK
   
BPS
   
BSD
Undistributed tax-exempt income
        $ 3,293,555         $ 2,328,549         $ 16,449,734         $ 9,318,229         $ 469,440         $ 1,564,083     
Undistributed ordinary income
                                   63             14,877            3,137            4,395   
Capital loss carryforwards
           (3,891,660 )           (39,667,163 )           (1,444,429 )           (17,909,318 )           (1,833,412 )           (9,247,397 )  
Net unrealized gains1
           42,728,096            18,061,207            34,875,295            89,761,742            4,217,354            15,763,715   
Qualified late-year losses2
                                                           (9,756 )              
Total
        $ 42,129,991         $ (19,277,407 )        $ 49,880,663         $ 81,185,530         $  2,846,763         $   8,084,796   
1   The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales, amortization and accretion methods of premiums and discounts on fixed income securities, the accrual of income on securities in default, the realization for tax purposes of unrealized gains/losses on certain futures contracts, the timing and recognition of partnership income, the treatment of residual interests in tender option bond trusts and the deferral of compensation to Trustees.
2   The Trust has elected to defer certain qualified late-year losses and recognize such losses in the year ending April 30, 2014.

As of April 30, 2013, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires April 30,



   
BKN
   
BTA
   
BKK
   
BFK
   
BPS
   
BSD
2014
                    $ 701,315                     $ 2,574,427                        —      
2015
                                               606,017                           
2016
                       22,052,642                        10,207,532         $ 127,957               
2017
        $ 2,716,981            6,882,935                        2,065,704            929,529         $ 3,887,588   
2018
           1,174,679            4,821,726         $ 354,058            2,455,638            586,549            2,381,683   
2019
                       951,237            1,090,371                                    2,978,126   
No expiration date3
                       4,257,308                                    189,377               
Total
        $  3,891,660         $ 39,667,163         $  1,444,429         $ 17,909,318         $  1,833,412         $   9,247,397   
3   Must be utilized prior to losses subject to expiration.

During the year ended April 30, 2013, the Trusts listed below utilized the following amounts of their respective capital loss carryforwards:

BKN
        $ 5,556,220   
BTA
        $ 1,548,686   
BKK
        $ 419,679   
BFK
        $ 6,506,803   
BPS
        $ 137,155   
BSD
        $ 976,298   

As of April 30, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:




   
BKN
   
BTA
   
BKK
   
BFK
   
BPS
   
BSD
 
Tax cost
        $ 367,818,965         $ 152,756,917         $ 463,129,662         $ 864,233,805         $ 43,538,722         $ 137,851,183   
Gross unrealized appreciation
        $ 45,889,883         $ 22,534,236         $ 38,052,152         $ 106,356,676         $ 4,333,696         $ 18,051,524   
Gross unrealized depreciation
           (3,063,033 )           (4,370,399 )           (3,308,013 )           (15,726,026 )           (109,578 )           (2,219,044 )  
Net unrealized appreciation
        $ 42,826,850         $ 18,163,837         $ 34,744,139         $ 90,630,650         $ 4,224,118         $ 15,832,480   

6. Concentration, Market and Credit Risk:

The Trusts invest a substantial amount of their assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states.

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.

In the normal course of business, the Trusts invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Trusts may be exposed to counterparty credit risk, or the risk that an entity with which the Trusts have unsettled or open transactions may fail to or be unable to perform on its commitments. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that they believe 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 generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Trusts.

ANNUAL REPORT APRIL 30, 2013 67
 
  
Notes to Financial Statements (continued)  

As of April 30, 2013, BKN, BPS and BSD invested a significant portion of their assets in securities in the health sector. BFK and BSD invested a significant portion of their assets in securities in the transportation sector. BKN invested a significant portion of its assets in the county/city/special district/school district sector. Changes in economic conditions affecting the health, transportation or county/city/special district/school district sector would have a greater impact on the Trusts and could affect the value, income and/or liquidity of positions in such securities.

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.

7. Capital Share Transactions:

BKK, BFK, BPS and BSD are authorized to issue an unlimited number of shares, including Preferred Shares, par value $0.001 per share, all of which were initially classified as Common Shares. BKN is authorized to issue 200 million shares including Preferred Shares, all of which were initially classified as Common Shares, par value $0.01 per share. BTA is authorized to issue an unlimited number of Common Shares, par value $0.001 per share. BTA is also allowed to issue Preferred Shares but has not done so. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders.

Common Shares

For the years shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:




   
Year
Ended
April 30,
2013

   
Year
Ended
April 30,
2012

BKN
           41,693            58,712     
BTA
           28,270            21,299   
BFK
           91,781            124,471   
BPS
           3,536            2,190   
BSD
           5,389            4,390   

Shares issued and outstanding remained constant for BKK for the year ended April 30, 2013 and the year ended April 30, 2012.

Preferred Shares

Each Trust’s Preferred Shares rank prior to the Trust’s 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 the Trust’s Common Shares or the repurchase of the Trust’s Common Shares if the Trust fails to maintain the asset coverage of at least 200% of the liquidation preference of the outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instrument, the Trust is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with the Preferred Shares or repurchasing such shares if the Trust fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares governing instrument or comply with the basic maintenance amount requirement of the rating agencies then rating the Preferred Shares.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’s sub-classification as a closed-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

BPS has issued Series W-7 VRDP Shares, $100,000 liquidation value per share, in a privately negotiated offering. The VRDP Shares were offered to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended, (the “Securities Act”) and include a liquidity feature, pursuant to a liquidity agreement, that allows the holders of VRDP Shares to have their shares purchased by the liquidity provider in the event of a failed remarketing. BPS is required to redeem the VRDP Shares owned by the liquidity provider after six months of continuous, unsuccessful remarketing. Upon the occurrence of the first unsuccessful remarketing, BPS is required to segregate liquid assets to fund the redemption. The VRDP Shares are subject to certain restrictions on transfer.

The VRDP Shares outstanding as of the year ended April 30, 2013 were as follows:




   
Issue Date
   
Shares
Issued

   
Aggregate
Principal

   
Maturity Date 
BPS
           6/14/12      
163
     $ 16,300,000            7/01/42    

BPS entered into a fee agreement with the liquidity provider that may require a per annum liquidity fee payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations.

The fee agreement between the BPS and the liquidity provider is scheduled to expire on July 9, 2015 unless renewed or terminated in advance. In the event the fee agreement is not renewed or is terminated in advance, and BPS does not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. BPS is required to redeem any VRDP Shares purchased by the liquidity provider six months after the purchase date. Immediately after the purchase of any VRDP Shares by the liquidity provider, BPS is required to begin to segregate liquid assets with the Trust’s custodian to fund the redemption. There is no assurance BPS will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

68 ANNUAL REPORT APRIL 30, 2013
 
  
Notes to Financial Statements (continued)  

BPS is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, BPS is required to begin to segregate liquid assets with the Trust’s custodian to fund the redemption. In addition, BPS is required to redeem certain of its outstanding VRDP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the VRDP Shares may be redeemed, in whole or in part, at any time at the option of BPS. The redemption price per VRDP Share is equal to the liquidation value per share plus any outstanding unpaid dividends. In the event of an optional redemption of the VRDP Shares prior to the initial termination date of the fee agreement, BPS must pay the respective liquidity provider fees on such redeemed VRDP Shares for the remaining term of the fee agreement up to the initial termination date.

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. 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. At the date of issuance, the VRDP Shares were assigned a long-term rating of Aaa from Moody’s and AAA from Fitch. In May 2012, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of April 30, 2013, the VRDP Shares were assigned a long-term rating of Aa1 from Moody’s under its new ratings methodology. The VRDP Shares continue to be assigned a long-term rating of AAA from Fitch.

For financial reporting purposes, the VRDP Shares are considered debt of the issuer; therefore, the liquidation value, which approximates fair value, of the VRDP Shares is recorded as a liability in the Statements of Assets and Liabilities. 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 Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP Shares are generally classified as tax-exempt income for tax-reporting purposes.

BPS may incur remarketing fees of 0.10% on the aggregate principal amount of all the VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. None of BPS’s VRDP Shares were tendered for remarketing during the year ended April 30, 2013.

The annualized dividend rates for the VRDP Shares for the year ended April 30, 2013 were as follows:




   
Rate
BPS
           1.10 %  

Upon issuance of the VRDP Shares on June 14, 2012, BPS announced a special rate period for an approximate three-year term ending June 24, 2015 with respect to its VRDP Shares. The liquidity and fee agreements remain in effect for the duration of the special rate period; however, the VRDP Shares will not be remarketed or subject to optional or mandatory tender events during such time. During the special rate period, BPS is required to maintain the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares. During the three-year term of the special rate period, BPS will not pay any liquidity and remarketing fees and instead will pay dividends monthly based on the sum of SIFMA Municipal Swap Index and a percentage per annum based on the long-term ratings assigned to the VRDP Shares.

If BPS redeems the VRDP Shares on a date that is one year or more before the end of the special rate period and the VRDP Shares are rated above A1/A by Moody’s and Fitch respectively, then such redemption is subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. After June 24, 2015, the holder of the VRDP Shares and BPS may mutually agree to extend the special rate period. If the special rate period is not extended, the VRDP Shares will revert back to remarketable securities and will be remarketed and available for purchase by qualified institutional investors. The VRDP Shares are subject to certain transfer restrictions during the special rate period. No short-term ratings were assigned by Moody’s, Fitch and/or S&P at issuance but will be assigned upon termination of the special rate period when the VRDP Shares revert to remarketable securities.

VMTP Shares

BKN, BFK and BSD (collectively, the “VMTP Trusts”) have issued Series W-7 VMTP Shares, $100,000 liquidation value per share, in a privately negotiated offering and sale of VMTP Shares exempt from registration under the Securities Act.

The VMTP Shares outstanding as of the year ended April 30, 2013 were as follows:




   
Issue Date
   
Shares
Issued

   
Aggregate
Principal

   
Term Date
BKN
           12/16/11            1,259         $ 125,900,000            1/02/15   
BFK
           12/16/11            2,708         $ 270,800,000            1/02/15   
BSD
           12/16/11            429          $ 42,900,000            1/02/15   

Each VMTP Trust is required to redeem its VMTP Shares on the term date, unless earlier redeemed or repurchased or unless extended. There is no assurance that the term of the Trusts’ VMTP Shares will be extended or that a Trusts’ 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 term date, each VMTP Trust is required to begin to segregate liquid assets with the Trusts’ custodian to fund the redemption. In addition, each VMTP Trust is required to redeem certain of its outstanding VMTP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage requirements.

ANNUAL REPORT APRIL 30, 2013 69
 
  
Notes to Financial Statements (continued)  

Subject to certain conditions, each Trust’s VMTP Shares may be redeemed, in whole or in part, at any time at the option of the Trust. The redemption price per VMTP Share is equal to the liquidation value per share plus any outstanding unpaid dividends and applicable redemption premium. If the Trusts redeem the VMTP Shares on a date that is one year or more prior to the term date and the VMTP Shares are rated above A1/A+ by Moody’s and Fitch, respectively, then such redemption is subject to a prescribed redemption premium (up to 103% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining to the term date, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. The VMTP Shares are subject to certain restrictions on transfer, and the Trust may also be required to register the VMTP Shares for sale under the Securities Act under certain circumstances. In addition, amendments to the VMTP governing document generally require the consent of the holders of VMTP Shares.

Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to the SIFMA Municipal Swap Index. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by Moody’s and Fitch. At the date of issuance, the VMTP Shares were assigned long-term ratings of Aaa from Moody’s and AAA from Fitch. In May 2012, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of April 30, 2013, the VMTP Shares were assigned long-term ratings of Aaa from Moody’s under its new rating methodology. The VMTP Shares continue to be assigned a long-term rating of AAA from Fitch. The dividend rate on the VMTP Shares is subject to a step-up spread if the Trust fails to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and maintaining certain asset coverage and leverage requirements.

The average annualized dividend rates for the VMTP Shares for the year ended April 30, 2013 were as follows:




   
Rate
BKN
           1.16 %  
BFK
           1.16 %  
BSD
           1.16 %  

For financial reporting purposes, the VMTP Shares are considered debt of the issuer; therefore the liquidation value, which approximates fair value, of the VMTP Shares is recorded as a liability in the Statements of Assets and Liabilities. 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 VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes.

Offering Costs: Certain Trusts incurred costs in connection with the issuance of VRDP Shares and/or VMTP Shares. For VRDP Shares, these costs were recorded as a deferred charge and will be amortized over the 30-year life of the VRDP Shares. For VMTP Shares, these costs were recorded as a deferred charge and will be amortized over the three-year life of the VMTP Shares. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statement of Operations.

AMPS

The AMPS are redeemable at the option of BKK in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The AMPS are also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of BKK, as set forth in BKK’s Statement of Preferences (the “Governing Instrument”) are not satisfied.

From time to time in the future, BKK may effect repurchases of its AMPS at prices below their liquidation preference as agreed upon by the Trust and seller. BKK also may redeem its AMPS from time to time as provided in the Governing Instrument. BKK intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

BKK had the following series of AMPS outstanding, effective yields and reset frequency as of April 30, 2013:




   
Series
   
AMPS
   
Effective
Yield

   
Reset
Frequency
Days

BKK
           M-7             2,150            0.36 %           7    
 
           W-7             2,150            0.38 %           7    
 
           F-7             2,150            0.36 %           7    

Dividends on BKK’s AMPS are cumulative at a rate, which is reset every seven days, based on the results of an auction. If the AMPS fail to clear the auction on an auction date, BKK is required to pay the maximum applicable rate on the AMPS to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on the AMPS is footnoted in the table below. The low, high and average dividend rates on the AMPS for BKK and BPS for the period were as follows:




   
Series
   
Low
   
High
   
Average
BKK
           M-7             0.13 %           0.38 %           0.25 %  
 
           W-7             0.13 %           0.38 %           0.25 %  
 
           F-7             0.14 %           0.38 %           0.25 %  
BPS
           W-7             0.24 %           0.38 %           0.31 %  

Since February 13, 2008, the AMPS of BKK and BPS failed to clear any of its auctions. As a result, the AMPS dividend rates were reset to the maximum applicable rate, which ranged from 0.13% to 0.38% for the year ended April 30, 2013. A failed auction is not an event of default for the Trust but it has a negative impact on the liquidity of AMPS. A failed auction occurs when there are more sellers of the Trust’s AMPS than buyers. A successful auction for the Trusts’ AMPS may not occur for some time, if ever, and even if liquidity does resume, holders of AMPS may not have the ability to sell the AMPS at their liquidation preference.

70 ANNUAL REPORT APRIL 30, 2013
 
  
Notes to Financial Statements (concluded)  

BKK and BPS paid commissions of 0.15% on the aggregate principal amount of all shares that fail to clear their auctions and 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Certain broker dealers have individually agreed to reduce commissions for failed auctions. The commissions paid to these broker dealers are included in remarketing fees on Preferred Shares in the Statements of Operations.

During the year ended April 30, 2013, BKK and BPS announced the following redemptions of AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:




   
Series
   
Redemption
Date

   
Shares
Redeemed

   
Aggregate
Principal

BKK
           F-7             1/22/13            142          $ 3,550,000     

 
           M-7             1/22/13            142          $ 3,550,000   

 
           W-7             1/24/13            142          $ 3,550,000   

 
           F-7             1/28/13            26          $ 650,000   

 
           M-7             1/29/13            26          $ 650,000   

 
           W-7             1/31/13            26          $ 650,000   
BPS
           W-7             7/05/12            653          $ 16,325,000   

As of April 30, 2013, there were no AMPS outstanding on BPS.

During the year ended April 30, 2012, BKN, BFK, and BSD announced the following redemptions of AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:




   
Series
   
Redemption
Date

   
Shares
Redeemed

   
Aggregate
Principal

BKN
           T-7             1/11/12            2,804         $ 70,100,000     
 
           T-28             1/18/12            2,234         $ 55,850,000   
BFK
           M-7             1/10/12            2,167         $ 54,175,000   
 
           T-7             1/11/12            2,167         $ 54,175,000   
 
           W-7             1/12/12            2,167         $ 54,175,000   
 
           R-7             1/13/12            2,167         $ 54,175,000   
 
           F-7             1/09/12            2,167         $ 54,175,000   
BSD
           W-7             1/12/12            1,719         $ 42,975,000   

AMPS issued and outstanding remained constant for BKK for the year ended April 30, 2012.

BKN, BFK, BPS, and BSD financed the AMPS redemptions with proceeds received from the issuance of VRDP Shares and VMTP Shares, as applicable, as follows:

BKN
        $ 125,900,000   
BFK
        $ 270,800,000   
BPS
        $ 16,300,000   
BSD
        $ 42,900,000   

8. Subsequent Events:

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 paid a net investment income dividend in the following amounts per share on June 3, 2013 to Shareholders of record on May 15, 2013 as follows:




   
Common
Dividend
Per Share

BKN
        $ 0.08000   
BTA
        $ 0.06200   
BKK
        $ 0.06225   
BFK
        $ 0.08010   
BPS
        $ 0.07100   
BSD
        $ 0.07400   

Additionally, the Trusts declared a net investment income dividend on June 3, 2013 payable to Common Shareholders of record on June 14, 2013 as follows:




   
Common
Dividend
Per Share

BKN
        $ 0.08000   
BTA
        $ 0.06200   
BKK
        $ 0.06225   
BFK
        $ 0.07510   
BPS
        $ 0.06500   
BSD
        $ 0.07400   

The dividends declared on AMPS, VRDP Shares or VMTP Shares for the period May 1, 2013 to May 31, 2013 were as follows:




   
Series
   
AMPS/VRDP/VMTP
Dividends Declared

BKN            W-7          $ 125,417   
BKK            M-7          $   2,440   
             W-7          $   2,916   
             F-7          $   2,089   
BFK            W-7          $ 269,761   
BPS            W-7          $  16,501   
BSD            W-7          $  42,735   

On May 2, 2013, BKK announced the following redemption of AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date.




   
Series
   
Redemption
Date

   
Shares
Redeemed

   
Aggregate
Principal

BKK
           F-7             5/28/13            82          $ 2,050,000   
 
           M-7             5/28/13            82          $ 2,050,000   
 
           W-7             5/23/13            82          $ 2,050,000   
ANNUAL REPORT APRIL 30, 2013 71
 
  
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 2020 Term Trust,
BlackRock Municipal Income Trust,
BlackRock Pennsylvania Strategic Municipal Trust,
and BlackRock Strategic Municipal Trust:

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 2020 Term Trust, BlackRock Municipal Income Trust, BlackRock Pennsylvania Strategic Municipal Trust, and BlackRock Strategic Municipal Trust (collectively, the “Trusts”), including the schedules of investments, as of April 30, 2013, and the related statements of operations for the year then ended, the statements of cash flows for BlackRock Investment Quality Municipal Trust Inc., BlackRock Long-Term Municipal Advantage Trust, BlackRock Municipal Income Trust, BlackRock Pennsylvania Strategic Municipal Trust, and BlackRock Strategic Municipal Trust for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trusts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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. The Trusts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2013, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Investment Quality Municipal Trust Inc., BlackRock Long-Term Municipal Advantage Trust, BlackRock Municipal 2020 Term Trust, BlackRock Municipal Income Trust, BlackRock Pennsylvania Strategic Municipal Trust and BlackRock Strategic Municipal Trust as of April 30, 2013, the results of their operations for the year then ended, their cash flows for BlackRock Investment Quality Municipal Trust Inc., BlackRock Long-Term Municipal Advantage Trust, BlackRock Municipal Income Trust, BlackRock Pennsylvania Strategic Municipal Trust, and BlackRock Strategic Municipal Trust 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 periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Boston, Massachusetts
June 24, 2013

  

72 ANNUAL REPORT APRIL 30, 2013
 
  
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 reinvested by Computershare Trust Company, N.A. (the “Reinvestment Plan Agent”) in the respective Trust’s 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 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, BPS and BSD declare a dividend or determine to make a capital gain 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.

After BKK declares a dividend or determines to make a capital gain distribution, the Reinvestment Plan Agent will acquire shares for the participants’ account by the purchase of outstanding shares on the open market, on BKK’s primary exchange (“open market purchases”). BKK will not issue any new shares under the Reinvestment Plan.

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 dividends and 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 dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan. However, each Trust reserves the right to amend the Reinvestment Plan to include a service charge payable by the participants. Participants that request a sale of shares are subject to a $2.50 sales fee and a $0.15 per share fee. Per share fees include any applicable brokerage commissions the Reinvestment Plan Agent is required to pay. All correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at http://www.computershare.com/blackrock, or in writing to Computershare, P.O. Box 43078, Providence, RI 02940-3078, Telephone: (800) 699-1236. Overnight correspondence should be directed to the Reinvestment Plan Agent at 250 Royall Street,
Canton, MA 02021.

ANNUAL REPORT APRIL 30, 2013 73
 
  
Officers and Trustees  

Name, Address
and Year of Birth
         Position(s)
Held with
Trusts
     Length
of Time
Served as
a Trustee2
     Principal Occupation(s) During Past Five Years      Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen
     Public
Directorships
Independent Trustees1
 
Richard E. Cavanagh
55 East 52nd Street
New York, NY 10055
1946
     
Chairman of
the Board
and Trustee
  
Since
1994
  
Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life Insurance Company of America since 1998; Director, Arch Chemical (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; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007.
  
94 RICs consisting of
90 Portfolios
  
None
 
Karen P. Robards
55 East 52nd Street
New York, NY 10055
1950
     
Vice Chairperson of the Board, Chairperson of the Audit Committee
and Trustee
  
Since
2007
  
Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Care Investment Trust, Inc. (health care real estate investment trust) from 2007 to 2010; Investment Banker at Morgan Stanley from 1976 to 1987.
  
94 RICs consisting of
90 Portfolios
  
AtriCure, Inc.
(medical devices); Greenhill & Co., Inc.
 
Michael J. Castellano
55 East 52nd Street
New York, NY 10055
1946
     
Trustee and Member of the Audit Committee
  
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) since 2009; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012.
  
94 RICs consisting of
90 Portfolios
  
None
 
Frank J. Fabozzi
55 East 52nd Street
New York, NY 10055
1948
     
Trustee and Member of the Audit Committee
  
Since
1993
  
Editor of and Consultant for The Journal of Portfolio Management since 2006; Professor of Finance, EDHEC Business School since 2011; Professor in the Practice of Finance and Becton Fellow, Yale University School of Management from 2006 to 2011; Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006.
  
94 RICs consisting of
90 Portfolios
  
None
 
Kathleen F. Feldstein
55 East 52nd Street
New York, NY 10055
1941
     
Trustee
  
Since
2005
  
President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003; Director, Catholic Charities of Boston since 2009.
  
94 RICs consisting of
90 Portfolios
  
The McClatchy
Company
(publishing)
 
James T. Flynn
55 East 52nd Street
New York, NY 10055
1939
     
Trustee and Member of the Audit Committee
  
Since
2007
  
Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.
  
94 RICs consisting of
90 Portfolios
  
None
 
Jerrold B. Harris
55 East 52nd Street
New York, NY 10055
1942
     
Trustee
  
Since
2007
  
Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000; Director of Delta Waterfowl Foundation from 2010 to 2012; President and Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999.
  
94 RICs consisting of
90 Portfolios
  
BlackRock Kelso
Capital Corp.
(business develop-
ment company)
 
R. Glenn Hubbard
55 East 52nd Street
New York, NY 10055
1958
     
Trustee
  
Since
2004
  
Dean, Columbia Business School since 2004; Faculty member, Columbia Business School since 1988.
  
94 RICs consisting of
90 Portfolios
  
ADP (data and information services); KKR Financial Corporation (finance); Metropolitan Life Insurance Company (insurance)
74 ANNUAL REPORT APRIL 30, 2013
 
  
Officers and Trustees (continued)  
Name, Address
and Year of Birth
         Position(s)
Held with
Trusts
     Length
of Time
Served as
a Trustee2
     Principal Occupation(s) During Past Five Years      Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen
     Public
Directorships
Independent Trustees1 (concluded)
 
W. Carl Kester
55 East 52nd Street
New York, NY 10055
1951
     
Trustee and Member of the Audit Committee
  
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.
  
94 RICs consisting of
90 Portfolios
  
None
 
 
        
1 Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. In 2011, 2012, and 2013, the Board of Trustees unanimously approved extending the mandatory retirement age for James T. Flynn and in 2013, the Board unanimously approved extending the mandatory retirement age for Kathleen F. Feldstein, in each case, by one additional year, which the Board believed would be in the best interest of shareholders. Mr. Flynn can serve until December 31 of the year in which he turns 75 and Ms. Feldstein can serve until December 31 of the year in which she turns 73. Mr. Flynn and Ms. Feldstein turn 75 and 73, respectively, in 2014.
 
        
2 Date shown is the earliest date a person has served for the Trusts covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. As a result, although the chart shows certain Trustees as joining the Trusts’ board in 2007, those 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; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995 and Karen P. Robards, 1998.
 
                                                                                                    
Interested Trustees3
 
Paul L. Audet
55 East 52nd Street
New York, NY 10055
1953
     
Trustee
  
Since
2011
  
Senior Managing Director of BlackRock and Head of U.S. Mutual Funds since 2011; Chair of the U.S. Mutual Funds Committee reporting to the Global Executive Committee since 2011; Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005.
  
155 RICs consisting of
282 Portfolios
  
None
 
Henry Gabbay
55 East 52nd Street
New York, NY 10055
1947
     
Trustee
  
Since
2007
  
Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.
  
155 RICs consisting of
282 Portfolios
  
None
 
 
        
3 Mr. Audet is an “interested person,” as defined in the 1940 Act, of the Trusts based on his position with BlackRock and its affiliates as well as his ownership of BlackRock securities. Mr. Gabbay is an “interested person” of the Trusts based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of two complexes of BlackRock registered open-end funds, the BlackRock Equity-Liquidity Complex and the BlackRock Equity-Bond Complex. Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The maximum age limitation may be waived as to any Trustee by action of a majority of the Trustees upon finding a good cause thereof.
ANNUAL REPORT APRIL 30, 2013 75
 
  
Officers and Trustees (concluded)  

Name, Address
and Year of Birth
         Position(s)
Held with
Trusts
     Length of
Time Served
     Principal Occupation(s) During Past Five Years
Officers1
 
John M. Perlowski
55 East 52nd Street
New York, NY 10055
1964
     
President and Chief Executive Officer
  
Since
2011
  
Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Services since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.
 
Anne Ackerley
55 East 52nd Street
New York, NY 10055
1962
     
Vice
President
  
Since
20072
  
Managing Director of BlackRock since 2000; Chief Marketing Officer of BlackRock since 2012; President and Chief Executive Officer of the BlackRock-advised funds from 2009 to 2011; Vice President of the BlackRock-advised funds from 2007 to 2009; Chief Operating Officer of BlackRock’s Global Client Group from 2009 to 2012; Chief Operating Officer of BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006.
 
Brendan Kyne
55 East 52nd Street
New York, NY 10055
1977
     
Vice
President
  
Since
2009
  
Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009; Vice President of BlackRock from 2005 to 2008.
 
Robert W. Crothers
55 East 52nd Street
New York, NY 10055
1981
     
Vice
President
  
Since
2012
  
Director of BlackRock since 2011; Vice President of BlackRock from 2008 to 2010; Associate of BlackRock from 2006 to 2007.
 
Neal Andrews
55 East 52nd Street
New York, NY 10055
1966
     
Chief
Financial
Officer
  
Since
2007
  
Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
 
Jay Fife
55 East 52nd Street
New York, NY 10055
1970
     
Treasurer
  
Since
2007
  
Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
 
Brian Kindelan
55 East 52nd Street
New York, NY 10055
1959
     
Chief Compliance Officer and
Anti-Money Laundering Officer
  
Since
2007
  
Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005.
 
Janey Ahn
55 East 52nd Street
New York, NY 10055
1975
     
Secretary
  
Since
2012
  
Director of BlackRock since 2009; Vice President of BlackRock from 2008 to 2009; Assistant Secretary of the Funds from 2008 to 2012; Associate at Willkie Farr & Gallagher LLP from 2006 to 2008.
 
        
1 Officers of the Trusts serve at the pleasure of the Boards.
 
        
2 Ms. Ackerley was President and Chief Executive Officer from 2009 to 2011.


Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisor
BlackRock Financial Management, Inc.
New York, NY 10022

Custodian and Accounting Agent
State Street Bank and Trust Company
Boston, MA 02110
     
Transfer Agent
Common Shares:
Computershare Trust Company, N.A.
Canton, MA 02021

AMPS Auction Agent
The Bank of New York Mellon
New York, NY 10286

VRDP Tender and Paying Agent
and VMTP Redemption and
Paying Agent

The Bank of New York Mellon
New York, NY 10289
  
VRDP Liquidity Provider
Citibank, N.A.
New York, NY 10179

VRDP Remarketing Agent
CitiGroup Global Markets, Inc.
New York, NY 10179

Independent Registered
Public Accounting Firm

Deloitte & Touche LLP
Boston, MA 02116
  
Legal Counsel
Skadden, Arps, Slate,
Meagher & Flom LLP
New York, NY 10036

Address of the Trusts
100 Bellevue Parkway
Wilmington, DE 19809
76 ANNUAL REPORT APRIL 30, 2013
 
  
Additional Information  

Regulation Regarding Derivatives

Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to registered investment companies to regulation by the CFTC if a fund invests more than a prescribed level of its net assets in CFTC-regulated futures, options and swaps (“CFTC Derivatives”), or if a fund markets itself as providing investment exposure to such instruments. To the extent a Trust uses
CFTC-regulated futures, options and swaps, it intends to do so below such prescribed levels and will not market itself as a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock Advisors, LLC has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”) pursuant to Rule 4.5 under the CEA. BlackRock Advisors, LLC is not, therefore, subject to registration or regulation as a “commodity pool operator” under the CEA in respect to each Trust.

Trust Certification

Certain 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 dividend 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 dividends 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 in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

On July 29, 2010, the Manager announced that a derivative complaint had been filed by shareholders of BSD and BFK, on July 27, 2010 in the Supreme Court of the State of New York, New York County. The complaint names the Manager, BlackRock, Inc. and certain of the trustees, officers and portfolio managers of BSD and BFK (collectively, the “Defendants”) as defendants. The complaint alleges, among other things, that the Defendants breached fiduciary duties owed to BSD and BFK and each of their Common Shareholders by redeeming AMPS at their liquidation preference. The complaint sought, among other things, unspecified damages for losses purportedly suffered by BSD and BFK as a result of the prior redemptions and injunctive relief preventing BSD and BFK from redeeming AMPS at their liquidation preference in the future. On March 15, 2012, the Supreme Court of the State of New York, New York County, entered an order consolidating the above-referenced derivative action with another derivative case pending in the same court which asserted essentially the same claims. On the same date, the court also authorized plaintiffs to file an amended consolidated complaint, which they filed on April 16, 2012, asserting substantially the same claims alleged in their original complaints. Defendants filed a motion to dismiss the Consolidated Shareholder Derivative Complaint (the “Consolidated Complaint”) on July 20, 2012. On September 14, 2012, plaintiffs filed an application to hold the Defendants’ motion in abeyance and allow plaintiffs to conduct limited discovery before responding to the motion. After the parties agreed to proceed with limited discovery, plaintiffs advised Defendants they would withdraw their action and, on June 10, 2013, the parties filed a stipulation dismissing the Consolidated Complaint without prejudice, subject to approval of the court. The court dismissed the case without prejudice on June 17, 2013.

The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.

During the period, other than as described above, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. 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.

ANNUAL REPORT APRIL 30, 2013 77
 
  
Additional Information (concluded)  

General Information (concluded)

Electronic Delivery

Electronic copies of most financial reports are available on the Trusts’ web-sites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Trusts’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Trusts at (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. 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 (1) without charge, upon request, by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 882-0052 and (2) on the SEC’s website at http://www.sec.gov.

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 of http://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to periodically 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 the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

78 ANNUAL REPORT APRIL 30, 2013
 
  

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This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Certain 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 the dividend rates of the Preferred Shares, including AMPS, which are currently set at the maximum reset rate as a result of failed auctions, may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

CEMUNI6-4/13-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, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.

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:

Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards

 

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

 

Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements.

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 a non-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.

 

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Item 4 – Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

  (a) Audit Fees (b) Audit-Related Fees1 (c) Tax Fees2 (d) All Other Fees3
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 Investment Quality Municipal Trust, Inc. $31,563 $31,300 $0 $5,500 $6,600 $6,600 $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 (“Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Fund Service Providers”):

 

  Current Fiscal Year End Previous Fiscal Year End
(b) Audit-Related Fees1 $0 $0
(c) Tax Fees2 $0 $0
(d) All Other Fees3 $2,865,000 $2,970,000

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The nature of the services includes tax compliance, tax advice and tax planning.

3 Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by D&T with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Fund Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-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 specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-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.

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Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-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 permitted non-audit services, including services exceeding pre-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 Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Fund Service Providers were:

Entity Name Current Fiscal Year End Previous Fiscal Year End
BlackRock Investment Quality Municipal Trust, Inc. $6,600 $12,100

 

Additionally, SSAE 16 Review (Formerly, SAS No. 70) fees for the current and previous fiscal years of $2,865,000 and $2,970,000, respectively, were billed by D&T to the Investment Adviser.

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

Item 5 – Audit Committee of Listed Registrants

(a)    The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

Michael Castellano

Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards

 

(b)   Not Applicable

Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

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(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-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 a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-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 of Closed-End Management Investment Companies – as of April 30, 2013.

(a)(1) The registrant is managed by a team of investment professionals comprised of Timothy Browse, Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock and Walter O’Connor, Managing Director at BlackRock. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and selection of its investments. Messrs. Browse, Jaeckel and O’Connor have been members of the registrant’s portfolio management team since 2008, 2006 and 2006, respectively.

Portfolio Manager Biography
Timothy Browse Director of BlackRock since 2008; Vice President of BlackRock from 2006 to 2007; Vice President of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2004 to 2006.
Theodore R. Jaeckel, Jr. Managing Director of BlackRock since 2006; Managing Director of MLIM from 2005 to 2006; Director of MLIM from 1997 to 2005.
Walter O’Connor Managing Director of BlackRock since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.

 

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(a)(2) As of April 30, 2013:

 

(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

 
Timothy Browse 12 0 0 0 0 0
  $3.79 Billion $0 $0 $0 $0 $0
Theodore R. Jaeckel, Jr. 63 0 0 0 0 0
  $27.39 Billion $0 $0 $0 $0 $0
Walter O’Connor 63 0 0 0 0 0
  $27.39 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 material non-public information.  Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund.  It should also be noted that a portfolio manager may be managing hedge fund and/or long only accounts, or may be part of a team managing 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 the 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

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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, 2013:

Portfolio Manager Compensation Overview

 

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 BlackRock, Inc.

 

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 funds and other accounts managed by each portfolio manager relative to the various benchmarks.  Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are:

 

Portfolio Manager Benchmark
Theodore R. Jaeckel, Jr. A combination of peer based fund classifications or subsets thereof (e.g., Lipper Intermediate Debt Funds classification, Lipper NJ Municipal Debt Funds classification, Lipper Closed-End General Bond Fund classification, subset of Lipper Closed-End High Quality/Insured Muni Debt Leveraged Fund classification, subset of Lipper Closed-End Other Single State High Quality/Insured Muni Fund classification).
Walter O’Connor A combination of market-based indices (e.g., Barclays Capital Muni Bond Index, Standard & Poor's Municipal Bond Index), certain customized indices and certain fund industry peer groups.

 

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Timothy Browse

 

A combination of peer based fund classifications or subsets thereof (e.g., Lipper Intermediate Debt Funds classification, Lipper NJ Municipal Debt Funds classification).

 

 

Distribution of Discretionary Incentive Compensation

 

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. For some portfolio managers, discretionary incentive compensation is also distributed in deferred cash awards that notionally track the returns of select BlackRock investment products they manage and that vest ratably over a number of years. The BlackRock, Inc. restricted stock units, upon vesting, will be settled in BlackRock, Inc. common stock. Typically, the cash portion of the discretionary incentive compensation, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of discretionary incentive compensation in BlackRock 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. Providing a portion of discretionary incentive compensation in deferred cash awards that notionally track the BlackRock investment products they manage provides direct alignment with investment product results.

 

Long-Term Incentive Plan Awards — From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align their interests with long-term shareholder interests and motivate performance.  Equity awards are generally granted in the form of BlackRock, Inc. restricted stock units that, once vested, settle in BlackRock, Inc. common stock. Messrs. Jaeckel and O’Connor have unvested long-term incentive awards.

 

Deferred Compensation Program — A portion of the compensation paid to eligible United States-based BlackRock employees may be voluntarily deferred at their election for defined periods of time into an account that tracks the performance of certain of the firm’s investment products. Any portfolio manager who is either a managing director or director at BlackRock is eligible to participate in the deferred compensation program.

 

Other Compensation Benefits. In addition to base compensation 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 to 3-5% of eligible compensation up to the Internal Revenue Service limit ($255,000 for 2013).  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

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for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date.  Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the Purchase Date.  All of the eligible portfolio managers are eligible to participate in these plans.

 

(a)(4) Beneficial Ownership of Securities – As of April 30, 2013.

Portfolio Manager Dollar Range of Equity Securities
of the Fund Beneficially Owned
Timothy Browse None
Theodore R. Jaeckel, Jr. None
Walter O’Connor None

 

(b) Not Applicable

Item 9 – Purchases of Equity Securities by Closed-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 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.

(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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits attached hereto

(a)(1) – Code of Ethics – See Item 2

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(b) – Certifications – Attached hereto

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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 Investment Quality Municipal Trust, Inc.

 

By: /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Investment Quality Municipal Trust, Inc.

 

Date: July 2, 2013

 

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 Investment Quality Municipal Trust, Inc.

 

Date: July 2, 2013

 

By: /s/ Neal J. Andrews

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock Investment Quality Municipal Trust, Inc.

 

Date: July 2, 2013

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