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, 2005 
 
Date of reporting period:      September 30, 2005
 

Item 1. Schedule of Investments.

The Registrant’s unaudited 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, 2005

BlackRock Strategic Municipal Trust (BSD)

    Principal            
      Amount       Option Call    
  Rating1   (000)   Description   Provisions2   Value  
        LONG-TERM INVESTMENTS—159.7%        
          Alabama—9.5%        
  Baa2   $3,000   Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.70%, 11/01/29   11/09 @ 101   $      3,248,190  
  AA   7,000   Pub. Sch. & Coll. Auth. Cap. Impvt., Ser. C, 5.75%, 7/01/18   07/09 @ 101.5   7,649,600  
                  10,897,790  
          Alaska—1.0%        
  AAA   1,130 3 Hsg. Fin. Corp., Ser. A, 5.875%, 12/01/05, MBIA   N/A   1,158,148  
          California—14.8%        
  AAA   5,000   California, 5.00%, 3/01/33   03/15 @ 100   5,205,350  
  A-   7,570   Golden St. Tobacco Sec. Corp., Ser. B, 5.00%, 6/01/45   06/15 @ 100   7,675,980  
  AAA   2,500   Sacramento Cnty. San. Dist., 5.00%, 12/01/35, AMBAC   12/14 @ 100   2,619,575  
  AAA   1,385   Univ. of California, Ser. C, 4.75%, 5/15/37, MBIA   05/13 @ 101   1,402,520  
                  16,903,425  
          Colorado—2.1%        
  AAA   10,000   Northwest Pkwy. Pub. Hwy. Auth., Ser. B, Zero Coupon, 6/15/30, FSA   06/11 @ 31.387   2,386,000  
          Connecticut—8.6%        
          Mashantucket Western Pequot Tribe Spec. Rev.,        
  Baa3   1,500       Ser. A, 5.50%, 9/01/28   09/09 @ 101   1,549,380  
  Baa3   8,000       Ser. B, 5.75%, 9/01/27   09/09 @ 101   8,267,760  
                  9,817,140  
          Florida—11.8%        
  NR   1,730   Arborwood Cmnty. Dev. Dist., Master Infrastructure Projs., Ser. B, 5.10%, 5/01/14   No Opt. Call   1,726,799  
  A+   590   Highlands Cnty. Hlth. Fac. Auth., 5.00%, 11/15/30   11/15 @ 100   601,706  
  NR   3,300   Hillsborough Cnty. Ind. Dev. Auth., Nat. Gypsum Proj., Ser. A, 7.125%, 4/01/30   10/10 @ 101   3,661,614  
  BB+   2,045   Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21   11/14 @ 100   2,294,306  
  AAA   5,000   St. Brd. Ed. Cap. Outlay, Pub. Ed. Proj., Ser. B, 5.00%, 6/01/33   06/13 @ 101   5,224,700  
                  13,509,125  
          Georgia—4.6%        
  AAA   5,000   Atlanta Arpt. Passenger Fac., Ser. C, 5.00%, 1/01/33, FSA   07/14 @ 100   5,193,300  
          Illinois—7.5%        
  NR   850   Centerpoint Intermodal Ctr. Prog. Trust, Ser. A, 8.00%, 6/15/23   No Opt. Call   863,889  
  AAA   520 3 Chicago Brd. of Ed. Sch. Reform, 5.75%, 12/01/07, AMBAC   N/A   559,707  
  AA+   5,000   Edl. Fac. Auth. Rev., Northwestern Univ. Proj., 5.00%, 12/01/33   12/13 @ 100   5,175,700  
  BB+   295   Fin. Auth. Rev., Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37   02/15 @ 100   297,555  
          Fin. Auth. Student Hsg. MJH Ed. Asst. IV Proj.,        
  Baa3   300       Ser. A, 5.125%, 6/01/35   06/14 @ 100   298,875  
  Baa2   375       Ser. B, 5.375%, 6/01/35   06/14 @ 100   373,556  
  AAA   1,000   O’Hare Intl. Arpt., Ser. A, 5.00%, 1/01/30, MBIA   01/15 @ 100   1,036,620  
                  8,605,902  
          Kentucky—11.6%        
  AAA   32,345   Econ. Dev. Fin. Sys., Norton Hlth. Care, Inc. Proj., Ser. B, Zero Coupon, 10/01/24, MBIA   No Opt. Call   13,239,132  
          Michigan—9.2%        
  AAA   2,000   Hosp. Fin. Auth., Mercy Hlth. Svcs., 5.75%, 8/15/19, MBIA   08/09 @ 101   2,174,060  
  BB+   8,000   Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09   07/07 @ 101   8,361,920  
                  10,535,980  
          Minnesota—0.3%        
  AAA   350   St. Paul Met. Arpt. Comm., 5.00%, 1/01/35, AMBAC   01/15 @ 100   363,892  
          Missouri—1.9%        
  A   2,000   Hlth. & Edl. Facs. Auth., Hlth. Facs. Rev., St. Anthony’s Med. Ctr. Proj., 6.125%, 12/01/19   12/10 @ 101   2,190,880  
          Multi-State—5.8%        
  Baa1   2,000 4 Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/10   No Opt. Call   2,284,120  
  A3   4,000 4      MuniMae TE Bond Subsidiary LLC, Ser. A, 6.875%, 6/30/49   06/09 @ 100   4,365,080  
                  6,649,200  

1

BlackRock Strategic Municipal Trust (BSD) (continued)

    Principal            
      Amount       Option Call    
  Rating1   (000)   Description   Provisions2   Value  
        New Jersey—5.0%        
  B   $ 6,000   Econ. Dev. Auth., Continental Airlines, Inc. Proj., 6.25%, 9/15/19   09/09 @ 101   $      5,061,840  
  NR   645   Middlesex Cnty. Imprvt. Auth., Heldric Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37   01/15 @ 100   643,310  
                  5,705,150  
          New York—2.3%        
  Aa1   2,500   Mtg. Agcy. Homeowner Mtg., Ser. 85, 5.70%, 10/01/17   09/09 @ 100   2,606,225  
          North Carolina—2.7%        
  AA+   3,000   Cap. Fac. Fin. Agcy., Ser. A, 5.00%, 10/01/41   10/15 @ 100   3,126,960  
          Ohio—5.6%        
  AAA   6,265   Air Qual. Dev. Auth., 4.80%, 1/01/34       6,337,486  
          Oklahoma—1.1%        
  B-   1,225   Tulsa Mun. Arpt. Trust, Ser. A, 7.75%, 6/01/35   No Opt. Call   1,229,704  
          Pennsylvania—13.9%        
  AAA   7,000   Allegheny Cnty. San. Swr. Auth., Ser. A, 5.00%, 12/01/30, MBIA   12/15 @ 100   7,317,240  
          Econ. Dev. Fin. Auth., Amtrak Proj.,        
  A3   700       Ser. A, 6.125%, 11/01/21   05/11 @ 101   748,804  
  A3   1,000 5          Ser. A, 6.25%, 11/01/31   05/11 @ 101   1,072,220  
  A3   1,000       Ser. A, 6.50%, 11/01/16   05/11 @ 101   1,101,210  
  NR   1,000       G, 5.125%, 12/01/15   No Opt. Call   996,250  
  BB-   3,555   Econ. Dev. Fin. Auth., Exempt Facs. Rev., Reliant Energy Conv. Proj., Ser. A, 6.75%,        
              12/01/36   12/09 @ 103   3,821,625  
  AAA   720   Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC   No Opt. Call   752,465  
                  15,809,814  
          Puerto Rico—7.6%        
  BBB-   9,255   Children’s Trust Fund, Ser. A, Zero Coupon, 5/15/50   05/15 @ 11.191   591,580  
          Hwy. & Trans. Auth.,        
  BBB+   1,015       5.00%, 7/01/30   07/15 @ 100   1,046,516  
  BBB+   2,040       5.00%, 7/01/40   07/15 @ 100   2,090,449  
  BBB+   1,980       5.00%, 7/01/45   07/15 @ 100   2,021,184  
  BBB+   1,835       Ser. K, 5.00%, 7/01/35   07/15 @ 100   1,887,609  
  AAA   900       Ser. L, 5.25%, 7/01/38, AMBAC   No Opt. Call   1,035,423  
                  8,672,761  
          South Carolina—2.5%        
  BBB+   2,500   Jobs Econ. Dev. Auth. Hosp. Facs. Rev., Palmetto Hlth. Alliance Proj., Ser. C, 7.00%, 8/01/30   08/13 @ 100   2,851,450  
          Tennesee—1.9%        
  AAA   2,000   Memphis Shelby Cnty. Arpt. Auth., Ser. D, 6.00%, 3/01/24, AMBAC   03/10 @ 101   2,165,020  
          Texas—22.5%        
  AAA   4,750   Harris Cnty. Houston Sports Auth., Ser. A, Zero Coupon, 11/15/38, MBIA   11/30 @ 61.166   777,338  
  AAA   5,000   Humble Indpt. Sch. Dist. Sch. Bldg., Ser. B, 5.00%, 2/15/30, FGIC   02/15 @ 100   5,220,100  
  AAA   4,865   Katy Indpt. Sch. Dist., Ser. B, 5.00%, 2/15/32   02/15 @ 100   5,063,978  
  AAA   4,060   La Joya Indpt. Sch. Dist., 5.00%, 2/15/34, PSF-GTD   02/14 @ 100   4,194,224  
  AAA   1,500   Lower Colorado River Auth., Ser. A, 5.50%, 5/15/21, AMBAC   05/09 @ 101   1,610,940  
  AAA   2,030   North East Indpt. Sch. Dist., 5.00%, 8/01/33   08/14 @ 100   2,107,607  
  AAA   2,150   North Harris Cnty. Regl. Wtr. Auth., 5.00%, 12/15/32, MBIA   12/14 @ 100   2,231,721  
  AAA   15,000   Tpke. Auth. Central Sys. Rev., Zero Coupon, 8/15/31, AMBAC   08/12 @ 32.807   3,577,200  
  AAA   285   Univ. of Texas Permanent Univ. Fund, Ser. B, 5.00%, 7/01/35   07/15 @ 100   297,261  
  AA+   500   Wtr. Fin. Asst., GO, 5.75%, 8/01/22   08/10 @ 100   546,940  
                  25,627,309  
          Utah—5.9%        
  AAA   4,000   Intermountain Pwr. Agcy. Sply., Ser. B, 5.75%, 7/01/19, MBIA   07/07 @ 102   4,243,840  
  AAA   2,450   Trans. Auth., 4.75%, 6/15/35, FSA   12/15 @ 100   2,469,551  
                  6,713,391  
          Total Long-Term Investments (cost $173,239,050)       182,295,184  

2

BlackRock Strategic Municipal Trust (BSD) (continued)                           

                 
  Shares                 
  (000)   Description           Value  
      MONEY MARKET FUND—0.7%            
  800        AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $800,000)           $       800,000  
      Total Investments—160.4% (cost $174,039,0506)           $183,095,184  
      Liabilities in excess of other assets (including $10,339,622 of investment           
          purchase payable)—(6.1)%           (6,937,173)  
      Preferred shares at redemption value, including dividends payable—(54.3)%           (62,008,863)  
      Net Assets Applicable to Common Shareholders—100%           $114,149,148  

1   Using the higher of S&P’s, Moody’s or Fitch’s rating.  
2   Date (month/year) and price of the earliest optional 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   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, 2005, the Trust held 13.1% of its net assets, with a current market value of $14,916,960, in securities restricted as to resale.  
5   Security, or a portion thereof, pledged as collateral with a value of $1,098,262 on 208 short U.S. Treasury Note futures contracts expiring December 2005 and 76 short U.S. Treasury Bond futures contracts expiring December 2005. The value of such contracts on September 30, 2005 was $31,588,625, with an unrealized gain of $466,728.  
6   Cost for Federal tax purposes is $174,000,451. The net unrealized appreciation on a tax basis is $9,094,733, consisting of $10,211,714 gross unrealized appreciation and $1,116,981 unrealized depreciation. 

KEY TO ABBREVIATIONS
AMBAC   —   American Municipal Bond Assurance Corp.   GO   —   General Obligation  
FGIC   —   Financial Guaranty Insurance Co.   MBIA   —   Municipal Bond Insurance Assoc.  
FSA   —   Financial Security Assurance   PCR   —   Pollution Control Revenue  

3

Item 2. Controls and Procedures.

(a) The Registrant's principal executive and principal financial officers have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-Q was recorded, processed, summarized, and reported within the required time periods and that information to be disclosed by the Registrant in this Form N-Q was accumulated and communicated to the Registrant’s management , including it principle executive and principle financial officers, as appropriate to allow timely decisions regarding required disclosure.

(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 (17 CFR 270.30a -3(d)) 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.

Separate certifications of the registrant’s principal executive and financial officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are 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 18, 2005

      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 18, 2005

By:      /s/ Henry Gabbay                                                                                                     
Name: Henry Gabbay
Title: Principal Financial Officer
Date: November 18, 2005