UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

 

Investment Company Act file number: 811-09401

 

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

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, The BlackRock Strategic Municipal Trust, 55 East 52nd Street, New York, NY 10055

 

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

 

Date of fiscal year end: 04/30/2015

 

Date of reporting period: 01/31/2015

 

Item 1 – Schedule of Investments

 
 
Schedule of Investments January 31, 2015 (Unaudited) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value  
 
Alabama — 2.3%  
County of Jefferson Alabama, RB, Limited Obligation School, Series A, 5.25%, 1/01/19 $ 465 $ 470,812  
County of Jefferson Alabama Sewer, Refunding RB, Sub-Lien, Series D, 7.00%, 10/01/51   1,115   1,350,176  
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40   655   777,734  
   
    2,598,722  
 
Alaska — 0.9%  
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A:          
  4.63%, 6/01/23   575   575,150  
  5.00%, 6/01/46   530   434,515  
   
    1,009,665  
 
Arizona — 1.1%  
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37   1,000   1,207,890  
 
California — 8.9%  
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/19 (a)   720   861,026  
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42   1,010   1,223,352  
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33   400   473,492  
California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:          
  5.25%, 8/15/39   45   50,912  
  5.25%, 8/15/49   115   129,364  
California Pollution Control Financing Authority, RB (b):          
  County of San Diego California Water Authority Desalination Project Pipeline, 5.00%, 11/21/45   390   404,457  
  Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45   475   521,189  
                 
Municipal Bonds Par
(000)		   Value  
 
California (concluded)  
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:          
  Senior, 5.00%, 5/15/40 $ 1,875 $ 2,158,556  
  5.25%, 5/15/39   250   288,525  
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38   110   131,537  
County of Stanislaus California Tobacco Securitization Agency, RB, CAB, Sub-Series C, 0.00%, 6/01/55 (c)   3,095   41,102  
State of California, GO, Various Purposes, 6.00%, 3/01/33   800   991,136  
State of California, Refunding, GO, Various Purposes, 6.50%, 4/01/33   650   801,625  
State of California Public Works Board, LRB:          
  Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33   915   1,098,933  
  Various Capital Projects, Series I, 5.00%, 11/01/38   240   280,320  
  Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34   375   466,343  
   
    9,921,869  
 
Colorado — 1.4%  
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34   680   788,311  
Park Creek Metropolitan District, Refunding RB, Senior Limited Property Tax, 5.50%, 12/01/37   440   447,418  
Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31   320   374,704  
   
    1,610,433  
 
Delaware — 2.1%  
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40   820   944,197  
                 


BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20151
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value  
 
Delaware (concluded)  
Delaware State EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45 $ 1,210 $ 1,337,486  
   
    2,281,683  
 
District of Columbia — 3.4%  
District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 6/01/41   690   756,068  
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.50%, 5/15/33   1,340   1,722,583  
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:          
  5.00%, 10/01/39   160   181,133  
  5.25%, 10/01/44   1,000   1,139,980  
   
    3,799,764  
 
Florida — 1.9%  
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/40   950   1,181,306  
Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43   775   880,725  
   
    2,062,031  
 
Georgia — 1.6%  
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Series A, Northeast Georgia Health System, Inc. Project, 5.50%, 8/15/54   160   191,389  
DeKalb Private Hospital Authority, Refunding RB, Children's Healthcare, 5.25%, 11/15/39   265   305,635  
Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, 3rd Indenture, Series A, 5.00%, 7/01/39   1,095   1,253,753  
   
    1,750,777  
 
Hawaii — 0.4%  
State of Hawaii Harbor System, RB, Series A, 5.25%, 7/01/30   425   491,470  
 
                 
Municipal Bonds Par
(000)		   Value  
 
Illinois — 23.1%  
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien:          
  Series A, 5.75%, 1/01/39 $ 1,500 $ 1,774,815  
  Series C, 6.50%, 1/01/41   1,855   2,270,019  
City of Chicago Illinois, GO, Refunding, Project, Series A:          
  5.25%, 1/01/32   1,000   1,091,400  
  5.00%, 1/01/34   1,000   1,054,330  
City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38   260   292,841  
City of Chicago Illinois Board of Education, GO, Series A, 5.25%, 12/01/41   1,400   1,497,636  
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series A, 5.63%, 1/01/35   800   938,672  
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40   330   381,305  
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42   1,415   1,587,545  
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38   245   291,383  
Illinois Finance Authority, Refunding RB:          
  Ascension Health, Series A, 5.00%, 11/15/37   305   348,457  
  Central Dupage Health, Series B, 5.50%, 11/01/39   2,500   2,908,325  
  Friendship Village Schaumburg, Series A, 5.63%, 2/15/37   145   145,039  
Illinois State Toll Highway Authority, RB:          
  Senior, Series C, 5.00%, 1/01/36   1,020   1,194,838  
  Senior, Series C, 5.00%, 1/01/37   875   1,024,161  
  Series A, 5.00%, 1/01/38   730   840,551  
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:          
  CAB, Series B (AGM), 0.00%, 6/15/44 (c)   2,980   813,272  
  Series B (AGM), 5.00%, 6/15/50   1,280   1,380,083  
  Series B-2, 5.00%, 6/15/50   785   844,597  
                 


BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20152
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value  
 
Illinois (concluded)  
Railsplitter Tobacco Settlement Authority, RB:          
  5.50%, 6/01/23 $ 175 $ 209,368  
  6.00%, 6/01/28   940   1,125,754  
State of Illinois, GO:          
  5.00%, 2/01/39   480   519,763  
  Series A, 5.00%, 4/01/35   1,000   1,082,820  
  Series A, 5.00%, 4/01/38   1,135   1,222,395  
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34   200   227,530  
University of Illinois, RB, Auxiliary Facilities System, Series A:          
  5.00%, 4/01/39   250   288,513  
  5.00%, 4/01/44   310   356,953  
   
    25,712,365  
 
Indiana — 4.5%  
Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A, 4.00%, 2/01/38   295   315,505  
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:          
  6.75%, 1/01/34   245   303,464  
  7.00%, 1/01/44   1,090   1,358,293  
Indiana Finance Authority, RB, Series A:          
  CWA Authority Project, 1st Lien, 5.25%, 10/01/38   1,020   1,201,713  
  Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44   140   153,272  
  Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48   465   508,375  
  Sisters of St. Francis Health Services, 5.25%, 11/01/39   270   305,786  
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39   350   404,667  
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 1/15/40   400   459,308  
   
    5,010,383  
 
Iowa — 2.5%  
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:          
  5.00%, 12/01/19   300   321,363  
  5.50%, 12/01/22   730   776,552  
  5.25%, 12/01/25   145   160,190  
                 
Municipal Bonds Par
(000)		   Value  
 
Iowa (concluded)  
Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22 $ 460 $ 488,999  
Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 6/01/46   1,145   1,035,458  
   
    2,782,562  
 
Kentucky — 3.9%  
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45   310   357,653  
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/24 (c)   5,000   3,677,450  
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43 (d)   375   278,100  
   
    4,313,203  
 
Louisiana — 2.6%  
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35   1,055   1,279,135  
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:          
  5.50%, 5/15/30   320   359,875  
  5.25%, 5/15/31   270   302,365  
  5.25%, 5/15/32   345   391,016  
  5.25%, 5/15/33   375   423,195  
  5.25%, 5/15/35   160   180,544  
   
    2,936,130  
 
Maryland — 1.9%  
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35   135   147,327  
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25   1,000   1,124,950  
                 


BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20153
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value  
 
Maryland (concluded)  
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/41 $ 690 $ 795,411  
   
    2,067,688  
 
Massachusetts — 0.4%  
Massachusetts Development Finance Agency, Refunding RB, Covanta Energy Project, Series C, AMT, 5.25%, 11/01/42 (b)   445   463,463  
 
Michigan — 4.7%  
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39   1,925   2,119,617  
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41   465   558,707  
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36   435   501,155  
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44   275   297,446  
Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, Series A, 5.25%, 11/15/46   500   521,825  
Royal Oak Hospital Finance Authority, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a)   1,000   1,262,830  
   
    5,261,580  
 
Missouri — 0.5%  
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44   80   92,069  
State of Missouri Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Services, 5.50%, 2/01/42   330   365,795  
                 
Municipal Bonds Par
(000)		   Value  
 
Missouri (concluded)  
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43 $ 80 $ 90,765  
   
    548,629  
 
Nebraska — 2.2%  
Central Plains Energy Project Nebraska, RB, Gas Project No. 3:          
  5.25%, 9/01/37   260   294,705  
  5.00%, 9/01/42   455   506,201  
County of Douglas Nebraska Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 1/01/40   720   812,851  
County of Hall Nebraska School District No. 2, GO, Grand Island Public Schools, 5.00%, 12/15/39   740   870,499  
   
    2,484,256  
 
Nevada — 0.8%  
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29   880   923,305  
 
New Jersey — 8.6%  
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (e)(f)   645   32,244  
New Jersey EDA, RB, AMT:          
  Continental Airlines, Inc. Project, 5.13%, 9/15/23   1,090   1,191,512  
  Continental Airlines, Inc. Project, 5.25%, 9/15/29   145   157,099  
  Private Activity Bond, The Goethals Bridge Replacement Project, 5.38%, 1/01/43   500   561,905  
New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31   705   840,557  
New Jersey State Turnpike Authority, RB:          
  Series A, 5.00%, 1/01/43   1,625   1,843,172  
  Series E, 5.25%, 1/01/40   1,355   1,528,386  
                 


BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20154
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value  
 
New Jersey (concluded)  
New Jersey Transportation Trust Fund Authority, RB:          
  Transportation Program, Series AA, 5.00%, 6/15/44 $ 1,090 $ 1,209,551  
  Transportation System, Series A, 5.50%, 6/15/41   575   662,871  
  Transportation System, Series B, 5.25%, 6/15/36   775   867,357  
Rutgers - The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43   165   191,577  
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 4.50%, 6/01/23   540   542,441  
   
    9,628,672  
 
New York — 12.3%  
City of New York New York Industrial Development Agency, ARB, AMT:          
  American Airlines, Inc., JFK International Airport, 7.75%, 8/01/31 (g)   3,000   3,273,690  
  British Airways PLC Project, 7.63%, 12/01/32   1,000   1,005,740  
City of New York New York Transitional Finance Authority, RB, Future Tax Secured Bonds, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42   770   888,680  
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44   314   361,079  
Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38   750   898,703  
New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Series B-1, 5.00%, 8/01/39   500   592,600  
New York Liberty Development Corp., Refunding RB:          
  2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49   385   439,870  
  3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (b)   1,555   1,662,964  
  3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (b)   105   117,589  
                 
Municipal Bonds Par
(000)		   Value  
 
New York (concluded)  
New York Liberty Development Corp., Refunding RB (concluded):          
  3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (b) $ 265 $ 299,076  
New York State Dormitory Authority, RB, Series F, 5.00%, 3/15/35   2,145   2,158,106  
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (b)   330   344,985  
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:          
  6.00%, 12/01/36   410   488,687  
  6.00%, 12/01/42   395   469,627  
Westchester Tobacco Asset Securitization, Refunding RB, 5.13%, 6/01/45   700   663,397  
   
    13,664,793  
 
North Carolina — 0.6%  
North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/42   440   502,128  
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41   185   211,923  
   
    714,051  
 
Ohio — 2.0%  
County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40   210   234,824  
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.00%, 5/01/39   885   968,093  
                 


BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20155
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value  
 
Ohio (concluded)  
State of Ohio, RB, Ford Motor Co. Project, AMT, 5.75%, 4/01/35 $ 1,000 $ 1,004,060  
   
    2,206,977  
 
Oregon — 0.7%  
State of Oregon Facilities Authority, RB, Student Housing, CHF-Ashland, Southern Oregon University Project, 5.00%, 7/01/44   715   814,056  
 
Pennsylvania — 1.8%  
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/42   385   415,827  
Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project, Series B, 5.00%, 11/15/40   600   687,240  
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypson Co., AMT, 5.50%, 11/01/44   480   496,622  
Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44   345   401,784  
   
    2,001,473  
 
South Carolina — 2.4%  
South Carolina State Ports Authority, RB, 5.25%, 7/01/40   1,040   1,189,770  
State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54   1,220   1,455,729  
   
    2,645,499  
 
Tennessee — 1.7%  
City of Chattanooga Tennessee Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45   430   496,099  
                 
Municipal Bonds Par
(000)		   Value  
 
Tennessee (concluded)  
County of Shelby Tennessee Health Educational & Housing Facilities Board, Refunding RB, St. Jude's Childrens Research Hospital, 5.00%, 7/01/31 $ 1,270 $ 1,340,117  
   
    1,836,216  
 
Texas — 12.4%  
Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 (e)(f)   730   36,500  
Central Texas Regional Mobility Authority, Refunding RB:          
  Senior Lien, 6.25%, 1/01/46   680   801,047  
  Sub-Lien, 5.00%, 1/01/33   115   127,006  
City of Austin Texas Airport System Revenue, ARB, AMT, 5.00%, 11/15/39   190   219,756  
City of Dallas Texas Waterworks & Sewer System, Refunding RB, 5.00%, 10/01/35   475   555,375  
City of Houston Texas Airport System, Refunding ARB:          
  Senior Lien, Series A, 5.50%, 7/01/39   485   551,775  
  United Airlines, Inc. Terminal E Project, AMT, 5.00%, 7/01/29   135   147,053  
City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 11/15/35   2,730   3,283,316  
Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 8/15/43   230   280,680  
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/48   145   169,868  
County of Harris Texas-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC), 0.00%, 11/15/38 (c)   4,750   1,547,265  
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 0.00%, 9/15/37 (c)   4,485   1,716,544  
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45   1,270   1,527,188  
                 


BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20156
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)
Municipal Bonds Par
(000)		   Value  
 
Texas (concluded)  
La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 8/15/44 $ 500 $ 575,730  
North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 9/01/37 (c)   640   225,011  
North Texas Tollway Authority, Refunding RB, 2nd Tier System, Series F, 6.13%, 1/01/16 (a)   1,025   1,080,165  
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:          
  LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40   500   612,455  
  NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39   275   329,906  
   
    13,786,640  
 
Virginia — 5.6%  
County of Fairfax Virginia EDA, Refunding RB, Goodwin House, Inc., 5.13%, 10/01/42   1,000   1,043,360  
University of Virginia, Refunding RB, General, 5.00%, 6/01/40   2,500   2,806,600  
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:          
  5.25%, 1/01/32   250   276,643  
  6.00%, 1/01/37   1,845   2,157,967  
   
    6,284,570  
 
Washington — 0.8%  
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45   715   862,740  
 
Wisconsin — 1.9%  
Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series A, 5.00%, 11/15/31   2,000   2,147,620  
 
Wyoming — 1.6%  
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, Remarketing, 5.25%, 7/15/26   975   1,133,798  
                 
Municipal Bonds Par
(000)		   Value  
 
Wyoming (concluded)  
Wyoming Municipal Power Agency, Inc., RB, Series A:          
  5.00%, 1/01/42 $ 95 $ 105,218  
  5.38%, 1/01/42   500   554,375  
   
    1,793,391  
 
Total Municipal Bonds — 123.5%   137,624,566  
 
   
 

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

  
 
Alabama — 0.7%  
City of Birmingham Alabama Special Care Facilities Financing Authority, Refunding RB, Ascension Health, Senior Credit, Series C-2, 5.00%, 11/15/36   760   814,519  
 
California — 5.3%  
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (i)   855   973,554  
City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/39   2,970   3,425,836  
Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (a)   740   822,029  
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33   553   646,712  
   
    5,868,131  
 
Colorado — 1.9%  
Colorado Health Facilities Authority, RB, Catholic Health (AGM):          
  Series C-3, 5.10%, 10/01/41   1,210   1,297,314  
  Series C-7, 5.00%, 9/01/36   780   837,743  
   
    2,135,057  
 
Connecticut — 3.0%  
Connecticut State Health & Educational Facility Authority, RB, Yale University:          
  Series T-1, 4.70%, 7/01/29   1,580   1,715,036  
                 


BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20157
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

 Par
(000)		   Value  
 
Connecticut (concluded)  
Connecticut State Health & Educational Facility Authority, RB, Yale University (concluded):          
  Series X-3, 4.85%, 7/01/37 $ 1,541 $ 1,671,869  
   
    3,386,905  
 
Massachusetts — 0.8%  
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41   720   844,292  
 
New Hampshire — 0.7%  
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (i)   645   745,678  
 
New York — 6.8%  
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 6/15/40   510   597,834  
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (i)   500   587,809  
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43   3,375   3,971,801  
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (i)   2,030   2,422,886  
   
    7,580,330  
 
Texas — 5.1%  
City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43   780   899,847  
County of Harris Texas, RB, Senior Lien, Toll Road, Series A, 5.00%, 8/15/38 (i)   2,142   2,436,148  
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41   1,080   1,256,353  
                 

Municipal Bonds Transferred to

Tender Option Bond Trusts (h)

 Par
(000)		   Value  
 
Texas (concluded)  
University of Texas, Refunding RB, Financing System, Series B, 5.00%, 8/15/43 $ 975 $ 1,141,079  
   
    5,733,427  
 
Utah — 1.2%  
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41   1,154   1,298,588  
 
Virginia — 1.8%  
University of Virginia, Refunding RB, General, 5.00%, 6/01/40   1,785   2,003,463  
 
Washington — 3.3%  
Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32   900   989,810  
State of Washington, GO, Various Purposes, Series E, 5.00%, 2/01/34   2,400   2,742,216  
   
    3,732,026  
 

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 30.6%

   34,142,416  
 
Total Long-Term Investments
(Cost — $153,391,248) — 154.1%		   171,766,981  
 
   
 
Short-Term Securities  Shares    
 
FFI Institutional Tax-Exempt Fund, 0.03% (j)(k)   1,367,145   1,367,145  
 
Total Short-Term Securities
(Cost — $1,367,145) — 1.2%		   1,367,145  
 
Total Investments
(Cost — $154,758,393*) — 155.3%		   173,134,126  
Other Assets Less Liabilities — 0.5%   561,331  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (17.3%)   (19,312,754)  
VMTP Shares, at Liquidation Value — (38.5%)   (42,900,000)  
   
Net Assets Applicable to Common Shares — 100.0% $ 111,482,703  
   
     
* As of January 31, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

  
Tax cost $ 135,784,303  
   
Gross unrealized appreciation $ 19,874,236  
Gross unrealized depreciation   (1,832,963)  
   
Net unrealized appreciation $ 18,041,273  
                 


BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20158
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
   

Notes to Schedule of Investments

(a) U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c) Zero-coupon bond.
(d) 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 is as of report date.
(e) Non-income producing security.
(f) Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(g) Variable rate security. Rate shown is as of report date.
(h) Represent bonds transferred to a TOB in exchange for which the Trust received cash and residual interest certificates. These bonds serve as collateral in a financing transaction.
(i) 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 expire from October 1, 2016 to February 15, 2031 is $4,045,248.
(j) Represents the current yield as of report date.
(k) During the period ended January 31, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 
  Affiliate   Shares
Held at
April 30, 2014		   Net
Activity		   Shares
Held at
January 31, 2015		   Income  
 
  FFI Institutional Tax-Exempt Fund   2,167,802   (800,657)   1,367,145   $ 419  
 
                                           

Portfolio Abbreviations

   
AGC Assured Guarantee Corp.
AGM Assured Guaranty Municipal Corp.
AMT Alternative Minimum Tax (subject to)
ARB Airport Revenue Bonds
CAB Capital Appreciation Bonds
CHF Swiss Franc
COP Certificates of Participation
EDA Economic Development Authority
EDC Economic Development Corp.
GARB General Airport Revenue Bonds
GO General Obligation Bonds
LRB Lease Revenue Bonds
NPFGC National Public Finance Guarantee Corp.
RB Revenue Bonds
S/F Single-Family
     

•
As of January 31, 2015, financial futures contracts outstanding were as follows:
 
Contracts
Short		 Issue Exchange Expiration Notional
Value		   Unrealized
Depreciation		  
(138) 10-Year U.S. Treasury Note Chicago Board of Trade March 2015 $ 18,060,750 $ (478,751)  
                 

 

BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20159
 
Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
   
 
•

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 reporting purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. 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. The three levels of the fair value hierarchy are as follows:

 

  • Level 1 – unadjusted quoted prices in active markets/exchanges for identical assets or 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)
 
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. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Trust’s most recent financial statements as contained in its semi-annual report.

As of January 31, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

 
  Level 1   Level 2   Level 3   Total  
 
Assets:    
Investments:  
  Long-Term Investments 1   — $ 171,766,981   — $ 171,766,981  
  Short-Term Securities $ 1,367,145   —   —   1,367,145  
Total $ 1,367,145 $ 171,766,981   — $ 173,134,126  
                                 

 

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

 

 
  Level 1   Level 2   Level 3   Total  
 
Derivative Financial Instruments 2  
Liabilities:  
Interest rate contracts $ (478,751)   —   — $ (478,751)  
                               

 

2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.
BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 201510
 
Schedule of Investments (concluded) BlackRock Strategic Municipal Trust (BSD)
   
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of January 31, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:  

 

 
  Level 1   Level 2   Level 3   Total  
 
Assets:    
  Cash pledged for financial futures contracts $ 188,000   —   — $ 188,000  
Liabilities:    
  TOB trust certificates   — $ (19,308,550)   —   (19,308,550)  
  VMTP Shares   —   (42,900,000)   —   (42,900,000)  
Total $ 188,000 $ (62,208,550)   — $ (62,020,550)  
                                   

 


During the period ended January 31, 2015, there were no transfers between levels.

 

BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 201511
 

 

Item 2 – Controls and Procedures
2(a) – The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the ″1940 Act″)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) – There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 3 – Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  The BlackRock Strategic Municipal Trust
     
  By: /s/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    The BlackRock Strategic Municipal Trust
     
  Date: March 25, 2015

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

  By: /s/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    The BlackRock Strategic Municipal Trust
     
  Date: March 25, 2015
     
  By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    The BlackRock Strategic Municipal Trust
     
  Date: March 25, 2015