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: 04/30/2014

 

Date of reporting period: 01/31/2014

 

Item 1 – Schedule of Investments

 
 
 
Schedule of Investments January 31, 2014 (Unaudited) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Alabama  — 3.3%          
Alabama State Docks Department, Refunding RB, 6.00%, 10/01/40  $655   $735,840 
County of Jefferson Alabama, RB, Limited Obligation School, Series A, 5.25%, 1/01/19   465    466,772 
County of Jefferson Alabama Sewer, Refunding RB:          
Convertible CAB, Senior Lien, Series C (AGM), 0.00%, 10/01/38 (a)   185    104,066 
Convertible CAB, Senior Lien, Series C (AGM), 0.00%, 10/01/42 (a)   160    88,840 
Senior Lien, Series A (AGM), 5.00%, 10/01/44   250    243,480 
Senior Lien, Series A (AGM), 5.25%, 10/01/48   480    472,430 
Sub-Lien, Series D, 7.00%, 10/01/51   1,115    1,167,929 
         3,279,357 
Alaska  — 1.0%          
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A:          
4.63%, 6/01/23   660    620,301 
5.00%, 6/01/46   530    365,356 
         985,657 
Arizona  — 1.6%          
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37   1,000    1,009,680 
San Luis Facility Development Corp., RB, Senior Lien Project, Regional Detention Center Project:          
6.25%, 5/01/15   90    88,122 
7.00%, 5/01/20   210    189,055 
7.25%, 5/01/27   420    315,243 
         1,602,100 
California  — 10.0%          
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/44   720    779,321 
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42   1,010    1,160,934 
            
Municipal Bonds  Par
(000)		  Value
California (concluded)          
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33  $400   $420,848 
California Pollution Control Financing Authority, RB:          
County of San Diego California Water Authority Desalination Project Pipeline, 5.00%, 11/21/45   390    363,035 
Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 7/01/37 (b)   325    294,996 
Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (b)   810    711,042 
California State Public Works Board, RB:          
Department of Corrections and Rehabilitation, Series F, 5.25%, 9/01/33   915    985,629 
Various Capital Projects, Series I, 5.00%, 11/01/38   240    249,370 
Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34   375    434,209 
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport Series A:          
Senior, 5.00%, 5/15/40   1,875    1,966,537 
5.25%, 5/15/39   250    269,425 
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38   110    119,027 
County of Stanislaus California Tobacco Securitization Agency, RB, CAB, County of Stanislaus Tobacco Funding Cop., Sub-Series C, 0.00%, 6/01/55 (c)   3,095    19,158 
San Diego Community College District California, GO, Election of 2006, 5.00%, 8/01/43   340    361,675 
State of California, GO, Various Purposes:          
6.00%, 3/01/33   800    935,920 
6.50%, 4/01/33   650    780,143 
         9,851,269 
BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20141
 

 

Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Colorado  — 2.0%          
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34  $680   $754,351 
Colorado State Board of Governors, Refunding RB, State University System Enterprise, Series A, 5.00%, 3/01/43   370    408,154 
Park Creek Metropolitan District, Refunding RB, Senior Limited Property Tax, 5.50%, 12/01/37   440    451,607 
Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31   320    343,738 
         1,957,850 
Delaware  — 2.1%          
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40   820    860,409 
Delaware State EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45   1,210    1,187,337 
         2,047,746 
District of Columbia  — 3.4%          
District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 6/01/41   690    702,399 
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.50%, 5/15/33   1,340    1,411,864 
Metropolitan Washington Airports Authority, Refunding RB, 1st Senior Lien, Series A:          
5.00%, 10/01/39   160    164,034 
5.25%, 10/01/44   1,000    1,027,020 
         3,305,317 
Florida  — 5.4%          
County of Hillsborough Florida IDA, RB, National Gypsum Co., Series A, AMT, 7.13%, 4/01/30   1,500    1,500,555 
County of Tampa-Hillsborough Florida Expressway Authority, Refunding RB:          
Series A, 5.00%, 7/01/37   630    655,874 
Series B, 5.00%, 7/01/42   395    405,910 
            
Municipal Bonds  Par
(000)		  Value
Florida (concluded)          
Miami Beach Health Facilities Authority, RB, Mount Sinai Medical Center Florida, 6.75%, 11/15/21  $925   $964,498 
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/40   950    1,052,134 
Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43   785    734,791 
         5,313,762 
Georgia  — 1.4%          
DeKalb Private Hospital Authority, Refunding RB, Children's Healthcare, 5.25%, 11/15/39   265    275,012 
Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, 3rd Indenture, Series A, 5.00%, 7/01/39   1,095    1,146,728 
         1,421,740 
Hawaii  — 0.5%          
State of Hawaii Harbor System, RB, Series A, 5.25%, 7/01/30   425    462,307 
Illinois  — 18.2%          
City of Chicago Illinois, GARB, O’Hare International Airport 3rd Lien:          
Series A, 5.63%, 1/01/35   800    843,712 
Series A, 5.75%, 1/01/39   1,500    1,588,395 
Series C, 6.50%, 1/01/41   1,855    2,113,494 
City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/34   1,430    1,429,943 
City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38   260    269,701 
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40   330    339,794 
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42   1,415    1,422,867 
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38   245    263,071 
Illinois Finance Authority, Refunding RB:          
Ascension Health, Series A, 5.00%, 11/15/37   305    312,890 
BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20142
 

 

Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Illinois (concluded)      
Illinois Finance Authority, Refunding RB  (concluded):          
Central Dupage Health, Series B, 5.50%, 11/01/39  $2,500   $2,691,075 
Friendship Village Schaumburg, Series A, 5.63%, 2/15/37   145    129,868 
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38   730    751,134 
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:          
CAB, Series B (AGM), 0.00%, 6/15/44 (c)   2,980    532,675 
Series B (AGM), 5.00%, 6/15/50   890    890,169 
Series B-2, 5.00%, 6/15/50   785    769,481 
Railsplitter Tobacco Settlement Authority, RB:          
5.50%, 6/01/23   175    195,848 
6.00%, 6/01/28   940    1,042,648 
State of Illinois, GO, Series A:          
5.00%, 4/01/35   1,000    1,012,410 
5.00%, 4/01/38   1,135    1,139,892 
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34   200    209,018 
         17,948,085 
Indiana  — 6.1%          
Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A:          
4.00%, 8/01/35   120    116,459 
4.00%, 2/01/38   570    538,838 
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:          
6.75%, 1/01/34   245    254,303 
7.00%, 1/01/44   1,090    1,139,017 
Indiana Finance Authority, RB, Series A:          
CWA Authority Project, 1st Lien, 5.25%, 10/01/38   1,020    1,086,769 
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44   140    131,873 
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48   465    433,296 
            
Municipal Bonds  Par
(000)		  Value
Indiana (concluded)          
Indiana Finance Authority, RB, Series A  (concluded):          
Sisters of St. Francis Health Services, 5.25%, 11/01/39  $270   $279,310 
Indiana Health Facility Financing Authority, Refunding RB, Methodist Hospital, Inc., 5.38%, 9/15/22   1,060    1,061,134 
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39   350    385,543 
Indianapolis Local Public Improvement Bond Bank, RB, Series A:          
5.00%, 1/15/36   125    132,781 
5.00%, 1/15/40   400    420,624 
         5,979,947 
Iowa  — 2.0%          
Iowa Finance Authority, RB, Midwestern Disaster Area, Alcoa, Inc. Project, 4.75%, 8/01/42   365    314,137 
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:          
5.00%, 12/01/19   300    296,400 
5.50%, 12/01/22   730    703,735 
5.25%, 12/01/25   145    134,590 
Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22   515    541,373 
         1,990,235 
Kentucky  — 3.7%          
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45   310    316,851 
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/24 (c)   5,000    3,066,900 
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crosing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43 (a)   375    211,043 
         3,594,794 
BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20143
 

 

Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Louisiana  — 2.7%          
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35  $1,055   $1,145,878 
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:          
5.50%, 5/15/30   320    327,046 
5.25%, 5/15/31   270    271,031 
5.25%, 5/15/32   345    345,545 
5.25%, 5/15/33   375    374,745 
5.25%, 5/15/35   160    159,277 
         2,623,522 
Maryland  — 2.0%          
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35   135    137,807 
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25   1,000    1,048,440 
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/41   690    732,835 
         1,919,082 
Massachusetts  — 0.5%          
Massachusetts School Building Authority, RB, Series A, Dedicated Sales Tax, Senior, 5.00%, 5/15/43   445    475,652 
Michigan  — 5.0%          
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A:          
5.00%, 7/01/32   495    452,088 
5.25%, 7/01/39   1,925    1,776,409 
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41   465    506,562 
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36   435    450,134 
Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, Series A, 5.25%, 11/15/46   500    491,340 
            
Municipal Bonds  Par
(000)		  Value
Michigan (concluded)          
Royal Oak Hospital Finance Authority, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39  $1,000   $1,214,920 
         4,891,453 
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    84,070 
Missouri State Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Services, 5.50%, 2/01/42   330    334,709 
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43   80    82,449 
         501,228 
Nebraska  — 1.5%          
Central Plains Energy Project Nebraska, RB, Gas Project No. 3:          
5.25%, 9/01/37   260    265,936 
5.00%, 9/01/42   455    455,610 
County of Douglas Nebraska Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 1/01/40   720    753,645 
         1,475,191 
Nevada  — 0.9%          
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29   880    927,203 
New Jersey  — 8.0%          
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (d)(e)   645    44,815 
New Jersey EDA, RB:          
Continental Airlines, Inc. Project, AMT, 5.13%, 9/15/23   1,090    1,059,709 
BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20144
 

 

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 EDA, RB  (concluded):          
Continental Airlines, Inc. Project, AMT, 5.25%, 9/15/29  $145   $139,563 
The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43   500    503,225 
New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31   705    729,922 
New Jersey State Turnpike Authority, RB:          
Series A, 5.00%, 1/01/43   1,625    1,687,107 
Series E, 5.25%, 1/01/40   1,355    1,429,877 
New Jersey Transportation Trust Fund Authority, RB, Transportation System:          
Series A, 5.50%, 6/15/41   575    611,443 
Series B, 5.25%, 6/15/36   775    824,073 
Rutgers - The State University of New Jersey, Refunding RB, Series L:          
5.00%, 5/01/38   160    172,902 
5.00%, 5/01/43   165    176,326 
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 4.50%, 6/01/23   540    506,585 
         7,885,547 
New York  — 9.8%          
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35 (d)(e)   315    47,263 
City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport, AMT, 7.75%, 8/01/31 (f)   3,000    3,291,930 
City of New York New York Industrial Development Agency, RB, British Airways PLC Project, AMT, 7.63%, 12/01/32   1,000    1,004,830 
City of New York New York Transitional Finance Authority, Future Tax Secured Bonds, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42   770    810,956 
            
Municipal Bonds  Par
(000)		  Value
New York (concluded)          
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   $411,761 
New York State Dormitory Authority, RB, Series F, 5.00%, 3/15/35   2,145    2,217,029 
New York State Dormitory Authority, Refunding RB, General Purpose, Series A, 5.00%, 6/15/31   560    614,611 
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:          
6.00%, 12/01/36   410    444,551 
6.00%, 12/01/42   395    427,564 
Utility Debt Securitization Authority, Refunding RB, Restructuring, Series E, 5.00%, 12/15/41   335    360,953 
         9,631,448 
North Carolina  — 0.7%          
North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/42   440    468,411 
North Carolina Medical Care Commission, Refunding RB, Retirement Facilities, 1st Mortgage, Whitestone Project, Series A, 7.75%, 3/01/41   185    196,226 
         664,637 
Ohio  — 2.1%          
County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40   210    211,667 
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.00%, 5/01/39   885    891,018 
State of Ohio, RB, Ford Motor Co. Project, AMT, 5.75%, 4/01/35   1,000    1,007,970 
         2,110,655 
BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20145
 

 

Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Oregon  — 0.7%          
Oregon State Facilities Authority, RB, Student Housing, CHF-Ashland, Southern Oregon University Project, 5.00%, 7/01/44  $715   $727,255 
Pennsylvania  — 0.6%          
Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project, Series B, 5.00%, 11/15/40   600    616,332 
South Carolina  — 1.1%          
South Carolina State Ports Authority, RB, 5.25%, 7/01/40   1,040    1,090,690 
Tennessee  — 0.5%          
City of Chattanooga Tennessee Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45   430    439,503 
Texas  — 16.0%          
Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 (d)(e)   730    22,813 
Central Texas Regional Mobility Authority, Refunding RB:          
Senior Lien, 6.25%, 1/01/46   680    711,559 
Sub-Lien, 5.00%, 1/01/33   115    107,875 
Sub-Lien, 5.00%, 1/01/42   100    89,759 
City of Dallas Texas Waterworks & Sewer System, Refunding RB, 5.00%, 10/01/35   475    515,912 
City of Houston Texas Airport System, RB, Special Facilities, Continental Airlines, Inc., Series E, AMT, 6.75%, 7/01/29   680    680,020 
City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39   485    535,115 
City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 11/15/35   2,730    3,120,936 
Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 8/15/43   230    242,280 
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    146,518 
            
Municipal Bonds  Par
(000)		  Value
Texas (concluded)          
County of Harris Texas-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC), 0.00%, 11/15/38 (c)  $4,750   $996,503 
County of Matagorda Texas Navigation District No. 1, Refunding RB, AEP Texas Central Co. Project, Series 1, 4.00%, 6/01/30   340    309,070 
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 0.00%, 9/15/37 (c)   4,935    1,547,122 
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45   1,270    1,457,109 
Dallas-Fort Worth International Airport, Refunding ARB, Joint Improvement, Series E, AMT, 5.00%, 11/01/35   565    569,141 
Fort Bend County Industrial Development Corp., RB, NRG Energy Project, Series B, 4.75%, 11/01/42   465    413,041 
La Joya Independent School District, GO, Refunding, Unlimited Tax, 4.00%, 2/15/32   1,400    1,427,412 
La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 8/15/44   500    536,635 
North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 9/01/37 (c)   640    165,094 
North Texas Tollway Authority, Refunding RB, 2nd Tier System, Series F, 6.13%, 1/01/31   1,025    1,090,118 
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    552,410 
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39   500    545,745 
         15,782,187 
BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20146
 

 

Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Utah  — 0.7%          
County of Utah Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43  $635   $660,102 
Virginia  — 6.0%          
County of Fairfax Virginia EDA, Refunding RB, Goodwin House, Inc., 5.13%, 10/01/42   1,000    1,006,730 
University of Virginia, Refunding RB, General, 5.00%, 6/01/40   2,500    2,724,150 
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings LLC Project, AMT:          
5.25%, 1/01/32   250    249,987 
6.00%, 1/01/37   1,845    1,927,859 
         5,908,726 
Washington  — 0.8%          
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45   715    761,632 
Wisconsin  — 2.2%          
Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series A, 5.00%, 11/15/31   2,000    2,129,500 
Wyoming  — 1.7%          
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, Remarketing, 5.25%, 7/15/26   975    1,050,874 
Wyoming Municipal Power Agency, Inc., RB, Series A:          
5.00%, 1/01/42   95    96,318 
5.38%, 1/01/42   500    541,510 
         1,688,702 
Total Municipal Bonds — 124.7%        122,650,413 
            
Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (g)		          
Alabama  — 0.8%          
City of Birmingham Alabama Special Care Facilities Financing Authority, Refunding RB, Ascension Health, Senior Credit, Series C-2, 5.00%, 11/15/36   760    769,299 
            
Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (g)		  Par
(000)		  Value
California  — 5.6%          
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (h)  $855   $935,430 
City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/39   2,970    3,161,951 
Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32   740    792,880 
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33   553    621,201 
         5,511,462 
Colorado  — 2.0%          
Colorado Health Facilities Authority, RB, Catholic Health (AGM):          
Series C-3, 5.10%, 10/01/41   1,210    1,229,275 
Series C-7, 5.00%, 9/01/36   780    792,769 
         2,022,044 
Connecticut  — 3.4%          
Connecticut State Health & Educational Facility Authority, RB, Yale University:          
Series T-1, 4.70%, 7/01/29   1,580    1,694,879 
Series X-3, 4.85%, 7/01/37   1,541    1,645,412 
         3,340,291 
Massachusetts  — 2.9%          
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41   720    765,097 
Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41   1,980    2,106,760 
         2,871,857 
New Hampshire  — 0.7%          
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (h)   645    715,950 
BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20147
 

 

Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (g)		  Par
(000)		  Value
New York  — 7.0%          
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   $549,103 
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (h)   500    540,251 
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43   3,375    3,589,346 
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (h)   2,030    2,189,477 
         6,868,177 
Tennessee  — 1.4%          
County of Shelby Tennessee Health Educational & Housing Facilities Board, Refunding RB, St. Jude's Children's Research Hospital, 5.00%, 7/01/31   1,280    1,354,573 
Texas  — 5.4%          
City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43   780    818,017 
County of Harris Texas, RB, Senior Lien, Toll Road, Series A, 5.00%, 8/15/38 (h)   2,142    2,340,180 
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41   1,080    1,145,383 
University of Texas, Refunding RB, Financing System, Series B, 5.00%, 8/15/43   975    1,044,408 
         5,347,988 
            
Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (g)		  Par
(000)		  Value
Utah  — 1.2%          
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41  $1,154   $1,191,408 
Virginia  — 2.0%          
University of Virginia, Refunding RB, General, 5.00%, 6/01/40   1,785    1,944,599 
Washington  — 3.7%          
Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32   900    962,261 
State of Washington, GO, Various Purposes, Series E, 5.00%, 2/01/34   2,400    2,640,936 
         3,603,197 
Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts — 36.1%   35,540,845      
Total Long-Term Investments
(Cost — $154,163,950) — 160.8%		   158,191,258      
            
Short-Term Securities  Shares     
FFI Institutional Tax-Exempt Fund, 0.03% (i)(j)   2,050,229    2,050,229 
Total Short-Term Securities
(Cost — $2,050,229) — 2.1%		        2,050,229 
Total Investments
(Cost — $156,214,179*) — 162.9%		        160,241,487 
Other Assets Less Liabilities — 2.0%        1,966,590 
Liability for TOB Trust Certificates, Including Interest Expense
and Fees Payable — (21.3%)		        (20,942,965)
VMTP Shares, at Liquidation Value — (43.6%)       (42,900,000)
Net Assets Applicable to Common Shares — 100.0%       $98,365,112 
* As of January 31, 2014, gross unrealized appreciation and depreciation based on cost for federal
  income tax purposes were as follows:
 
Tax cost        $135,612,572 
Gross unrealized appreciation       $7,354,595 
Gross unrealized depreciation       (3,664,230)
Net unrealized appreciation        $3,690,365 

 

Notes to Schedule of Investments

 

(a)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.
BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20148
 

 

Schedule of Investments (continued) BlackRock Strategic Municipal Trust (BSD)

 

(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)Non-income producing security.
(e)Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(f)Variable rate security. Rate shown is as of report date.
(g)Represent bonds transferred to a TOB. In exchange for which the Trust acquired residual interest certificates. These bonds serve as collateral in a financing transaction.
(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 $4,041,634.
(i)Investments in issuers considered to be an affiliate of the Trust during the period ended January 31, 2014, 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, 2013		   Net
Activity		   Shares
Held at
January 31, 2014		   Income
  FFI Institutional Tax-Exempt Fund   2,349,913   (299,684)   2,050,229   $461

 

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

 

Portfolio Abbreviations

 

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

 

AGC Assured Guarantee Corp.
AGM Assured Guaranty Municipal Corp.
AMT Alternative Minimum Tax (subject to)
ARB Airport Revenue Bonds
CAB Capital Appreciation Bonds
COP Certificates of Participation
EDA Economic Development Authority
EDC Economic Development Corp.
GARB General Airport Revenue Bonds
GO General Obligation Bonds
NPFGC National Public Finance Guarantee Corp.
RB Revenue Bonds

 

•Financial futures contracts outstanding as of January 31, 2014 were as follows:

 

Contracts
Sold		 Issue Exchange Expiration Notional
Value		 Unrealized
Depreciation
(90) 10-Year US Treasury Note Chicago Board of Trade March 2014 $11,317,500 $(119,139)

 

BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 20149
 

 

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 as follows:
•Level 1 – unadjusted price quotations 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)

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.

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, please refer to the Trust's most recent financial statements as contained in its semi-annual report.

The following tables summarize the Trust's investments and derivative financial instruments categorized in the disclosure hierarchy as of January 31, 2014:

    Level 1   Level 2   Level 3   Total
Assets:  
Investments:
     Long-Term Investments 1   —   $ 158,191,258     —     $ 158,191,258
  Short-Term Securities $ 2,050,229       —   —     2,050,229
Total $ 2,050,229   $ 158,191,258   —   $ 160,241,487

 

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

 

 

 

  Level 1     Level 2   Level 3   Total
Derivative Financial Instruments 2                    
Liabilities:                    
Interest rate contracts $ (119,139)     —   —   $ (119,139)

 

2Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.
BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 201410
 

 

Schedule of Investments (concluded) BlackRock Strategic Municipal Trust (BSD)

 

The carrying amount for certain of the Trust's assets and/or liabilities approximates fair value for financial reporting purposes. As of January 31, 2014, 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 $ 152,000        —     —   $ 152,000 
Liabilities:  
  TOB trust certificates   —   $ (20,938,550 )      —     (20,938,550)
  VMTP Shares   —     (42,900,000 )   —     (42,900,000)
Total $ 152,000   $ (63,838,550 )   —   $ (63,686,550)

 

There were no transfers between levels during the period ended January 31, 2014.

 

BLACKROCK STRATEGIC MUNICIPAL TRUSTJANUARY 31, 201411
 
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, 2014
     
  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, 2014
     
  By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    The BlackRock Strategic Municipal Trust
     
  Date: March 25, 2014