34238

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
                                                                       _____________________________________________________
   
   
BlackRock Strategic Municipal Trust
(Exact name of registrant as specified in charter)
 
   
         100 Bellevue Parkway, Wilmington, DE 19809
         (Address of principal executive offices) (Zip code)

Robert S. Kapito, President
BlackRock Strategic Municipal Trust
40 East 52nd Street, New York, NY 10022

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code:      888-825-2257
____________________________________________
   
Date of fiscal year end:      December 31, 2004
____________________________________________
   
Date of reporting period:      September 30, 2004
____________________________________________

 




Item 1. Schedule of Investments

The registrant's schedule of investments as of the close of the reporting period pursuant to Rule 30b1-5 under the Investment Company Act of 1940 is as follows:

 

PORTFOLIO OF INVESTMENTS (unaudited)
SEPTEMBER 30, 2004

BlackRock Strategic Municipal Trust (BSD)

  Principal      
 
 
 
    Amount      
Option Call
 
 
Rating1   (000)   Description  
Provisions2
 
Value
 
        LONG-TERM INVESTMENTS—153.5%  
        Alabama—14.6%  
AAA   $7,000     Alabama Pub. Sch. & Coll. Auth., Cap. Impvt., Ser. C, 5.75%, 7/01/18  
07/09 @ 101.5
 
$ 7,853,720
 
Baa2   3,000     Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.70%, 11/01/29  
11/09 @ 101
 
3,241,260
  
AAA   4,635 3   Jefferson Cnty. Swr., Ser. D, 5.75%, 2/01/07, FGIC  
N/A
 
5,076,020
  
             
 
 
             
 
16,171,000
  
             
 
 
          Alaska—1.1%  
AAA   1,130     Alaska Hsg. Fin. Corp., Ser. A, 5.875%, 12/01/24, MBIA  
12/05 @ 102
 
1,170,680
  
             
 
 
          California—5.3%  
          Golden St. Tobacco Sec. Corp., Ser. B,  
A-   2,600         5.50%, 6/01/43  
06/13 @ 100
 
2,675,946
  
A-   3,100         5.625%, 6/01/38  
06/13 @ 100
 
3,230,665
  
             
 
 
             
 
5,906,611
  
             
 
 
          Colorado—2.0%  
AAA   10,000     Northwest Pkwy. Pub. Hwy. Auth., Ser. B, Zero Coupon, 6/15/30, FSA  
06/11 @ 31.387
 
2,190,700
  
             
 
 
          Connecticut—8.8%  
          Mashantucket Western Pequot Tribe, Spec. Rev.,  
Baa3   1,500         Ser. A, 5.50%, 9/01/28  
09/09 @ 101
 
1,522,140
  
Baa3   8,000 4       Ser. B, 5.75%, 9/01/27  
09/07 @ 102
 
8,206,720
  
             
 
 
             
 
9,728,860
  
             
 
 
          Florida—10.0%  
          Florida Hsg. Fin. Corp., Sunset Place, Ser. K-1,  
BBB-   2,400         6.00%, 10/01/19  
10/09 @ 102
 
2,371,512
  
BBB-   2,000         6.10%, 10/01/29  
10/09 @ 102
 
1,965,020
  
NR   3,300     Hillsborough Cnty. Ind. Dev. Auth., Nat. Gypsum, Ser. A, 7.125%, 4/01/30  
10/10 @ 101
 
3,528,525
  
BB   2,045     Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr., 6.75%, 11/15/21  
11/14 @ 100
 
2,126,391
  
NR   1,070     Reunion West Cmnty. Dev. Dist., Spl. Assmt., 6.25%, 5/01/36  
05/12 @ 101
 
1,082,273
  
             
 
 
             
 
11,073,721
  
             
 
 
          Illinois—8.2%  
NR   850     Centerpoint Intermodal Ctr. Prog. Trust, Ser. A, 8.00%, 6/15/23  
No Opt. Call
 
846,897
  
          Chicago Brd. of Ed., Sch. Reform, AMBAC,  
AAA   4,480 3       5.75%, 12/01/07  
N/A
 
5,057,562
  
AAA   520         5.75%, 12/01/27  
12/07 @ 102
 
568,578
  
CC   7,560     Chicago O'Hare Intl. Arpt., Delta Air Lines Inc. Term. Proj., 6.45%, 5/01/18  
11/04 @ 100
 
2,628,990
  
             
 
 
             
 
9,102,027
  
             
 
 
          Iowa—0.8%  
BBB   1,000     Tobacco Settlement Auth., Tobacco Settlement Rev., Ser. B, 5.30%, 6/01/25  
06/11 @ 101
 
838,360
  
             
 
 
          Kentucky—10.5%  
AAA   32,345     Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon, 10/01/24, MBIA  
No Opt. Call
 
11,619,618
  
             
 
 
          Michigan—9.6%  
AAA   2,000     Michigan Hosp. Fin. Auth., Mercy Hlth. Svcs., 5.75%, 8/15/19, MBIA  
08/09 @ 101
 
2,230,020
  
BB+   8,000     Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09  
07/07 @ 101
 
8,326,480
  
             
 
 
             
 
10,556,500
  
             
 
 
          Missouri—1.9%  
A   2,000     Missouri Hlth. & Edl. Facs. Auth., Hlth. Facs. Rev., St. Anthony's Med. Ctr., 6.125%, 12/01/19  
12/10 @ 101
 
2,128,960
  
             
 
 
          New Jersey—10.5%  
B   6,000     New Jersey Econ. Dev. Auth., Continental Airlines Inc. Proj., 6.25%, 9/15/19  
09/09 @ 101
 
4,684,320
  
AAA   6,000 3   New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. A, 6.00%, 6/15/10  
N/A
 
6,966,180
  
             
 
 
             
 
11,650,500
  

1

BlackRock Strategic Municipal Trust (BSD) (continued)

  Principal      
 
 
    Amount      
Option Call
 
 
Rating1   (000)   Description  
Provisions2
 
Value
 
        New York—8.7%
          New York City Transl. Fin. Auth., Ser. B,
 
AAA   $ 4,885 3       6.00%, 5/15/10  
N/A
 
$ 5,716,476
  
AA+   1,115         6.00%, 11/15/21  
05/10 @ 101
 
1,274,668
  
Aa1   2,500     New York Mtg. Agcy., Homeowner Mtg., Ser. 85, 5.70%, 10/01/17  
09/09 @ 100
 
2,638,500
  
             
 
 
             
 
9,629,644
  
             
 
 
          Pennsylvania—18.0%  
          Lehigh Cnty. Gen. Purp. Auth., Kidspeace Oblig. Grp.,  
B3   2,250         6.00%, 11/01/23  
11/08 @ 102
 
2,055,712
  
B3   2,335         6.20%, 11/01/14  
11/09 @ 102
 
2,267,752
  
BBB+   1,500     Montgomery Cnty. Ind. Dev. Auth., Retirement Cmnty. Rev., 5.25%, 11/15/28  
11/08 @ 101
 
1,461,975
  
          Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A,  
 
A3   700         6.125%, 11/01/21  
05/11 @ 101
 
728,525
  
A3   1,000         6.25%, 11/01/31  
05/11 @ 101
 
1,038,990
  
A3   1,000         6.50%, 11/01/16  
05/11 @ 101
 
1,080,910
  
AAA   8,500 3   Philadelphia Sch. Dist., GO, Ser. C, 5.75%, 3/01/10, MBIA  
N/A
 
9,708,275
  
AAA   1,500     Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC  
No Opt. Call
 
1,566,810
  
             
 
 
             
 
19,908,949
  
             
 
 
          South Carolina—2.5%  
BBB   2,500     So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev., Palmetto Hlth. Alliance,
 
08/13 @ 100
 
2,780,000
  
              Ser. C, 7.00%, 8/01/30  
 
 
             
 
 
          Tennessee—5.5%  
Baa1   3,750     Maury Cnty. Ind. Dev. Brd., PCR, Saturn Corp. Proj., 6.50%, 9/01/24  
11/04 @ 102
 
3,852,638
  
AAA   2,000     Memphis Shelby Cnty. Arpt. Auth., Ser. D, 6.00%, 3/01/24, AMBAC  
03/10 @ 101
 
2,213,480
  
             
 
 
             
 
6,066,118
  
             
 
 
          Texas—12.8%  
AAA   4,750     Harris Cnty. Houston Sports Auth., Ser. A, Zero Coupon, 11/15/38, MBIA  
11/30 @ 61.166
 
667,423
  
AAA   1,500     Lower Colorado River Auth., Ser. A, 5.50%, 5/15/21, AMBAC  
05/09 @ 101
 
1,645,650
  
AAA   15,000     Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/31, AMBAC  
08/12 @ 32.807
 
3,092,700
  
AA+   500     Texas Wtr. Fin. Asst., GO, 5.75%, 8/01/22  
08/10 @ 100
 
558,980
  
AAA   7,030 3,4   Travis Cnty. Hlth. Facs. Dev. Corp., Ascension Hlth., Ser. A, 5.875%, 11/15/09, AMBAC  
N/A
 
8,153,675
  
             
 
 
             
 
14,118,428
  
             
 
 
          Utah—4.0%
 
AAA   4,000     Intermountain Pwr. Agcy., Sply., Ser. B, 5.75%, 7/01/19, MBIA  
07/07 @ 102
 
4,418,880
  
             
 
 
          Virginia—1.8%
 
AAA   1,750     Virginia Res. Auth., Clean Wtr. Rev., 5.625%, 10/01/22  
10/10 @ 100
 
1,939,175
  
             
 
 
          Washington—6.7%
 
          Washington, GO,
 
Aa1   4,750         Ser. A, 5.625%, 7/01/24  
07/09 @ 100
 
5,146,482
  
Aa1   2,000       Ser. B, 6.00%, 1/01/25  
01/10 @ 100
 
2,231,780
  
             
 
 
             
 
7,378,262
  
             
 
 
          Puerto Rico—4.1%
 
          Puerto Rico, Public Impvt., Ser. A,
 
A-   1,500         5.00%, 7/01/29  
07/14 @ 100
 
1,516,470
  
A-   2,500         5.00%, 7/01/34  
07/14 @ 100
 
2,519,725
  
A   500     Puerto Rico Hwy. & Transp. Auth., Ser. G, 5.00%, 7/01/42  
07/13 @ 100
 
500,040
  
             
 
 
             
 
4,536,235
  
             
 
 
          Multi-State—6.1%  
Baa1   2,000 5   Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/50  
11/10 @ 100
 
2,308,920
  
A3   4,000 4   MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49  
06/09 @ 100
 
4,413,360
  
             
 
 
             
 
6,722,280
  
             
 
 
          Total Long-Term Investments (cost $159,943,783)  
 
169,635,508
  
             
 
 

2

BlackRock Strategic Municipal Trust (BSD) (continued)

        
    Shares            
    (000)   Description       Value  
        MONEY MARKET FUND—4.2%    
    4,650     AIM Tax Free Investment Co. Cash Reserve Portfolio, (cost $4,650,000)       $ 4,650,000  
                 
 
          Total Investments—157.7% (cost $164,593,783)       $174,285,508  
          Liabilities in excess of other assets—(1.6%)       (1,764,741)  
          Preferred shares at redemption value, including dividends payable—(56.1%)       (62,002,394)  
                 
 
          Net Assets Applicable to Common Shareholders—100%       $110,518,373  
                 
 

 
1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates.  
3   This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.  
4   Entire or partial principal amount pledged as collateral for financial futures contracts.  
5   Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of September 30, 2004, the Trust held 13.5% of its net assets, with a current market value of $14,929,000, in securities restricted as to resale. 
 
KEY TO ABBREVIATIONS
 
AMBAC   
—   American Municipal Bond Assurance Corporation
        
 
FGIC     
—   Financial Guaranty Insurance Company
GO   
—   General Obligation
  FSA   —   Financial Security Assurance  
MBIA   
—   Municipal Bond Insurance Association
         
PCR   
—   Pollution Control Revenue
               

3

Item 2. Controls and Procedures

(a) The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures are effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized, and reported timely.

(b) The registrant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached as EX-99.CERT.

SIGNATURES

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.

(Registrant)     BlackRock Strategic Municipal Trust
______________________________________________________________

By:     /s/ Henry Gabbay
_____________________________________________________________________
Name: Henry Gabbay
Title: Treasurer
Date: November 23, 2004

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/ Robert S. Kapito
_____________________________________________________________________
Name: Robert S. Kapito
Title: Principal Executive Officer
Date: November 23, 2004

By:      /s/ Henry Gabbay
_____________________________________________________________________
Name: Henry Gabbay
Title: Principal Financial Officer
Date: November 23, 2004