FORM N-Q
Investment Company Act file number:__811-09401______
_______BlackRock Strategic Municipal Trust_______
(Exact name of registrant as specified in charter)
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100
Bellevue Parkway, Wilmington, DE
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19809
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Registrant's telephone number, including area code:_888-825-2257
Date of fiscal year end:___December 31, 2006
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
MARCH 31,
2006 (unaudited)
BlackRock Strategic Municipal Trust (BSD)
| Principal | |||||||||||||
| Amount | Option Call | ||||||||||||
| Rating1 | (000) | Description | Provisions2 | Value | |||||||||
| LONG-TERM INVESTMENTS—142.0% | |||||||||||||
| Alabama—9.5% | |||||||||||||
| Baa3 | $ 3,000 | Courtland Ind. Dev. Brd. PCRB, Champion Intl. Corp. Proj., Ser. A, 6.70%, 11/01/29 | 11/09 @ 101 | $ 3,209,250 | |||||||||
| AA | 7,000 | Pub. Sch. & Coll. Auth. Cap. Impvt. RB, Ser. C, 5.75%, 7/01/18 | 07/09 @ 101.5 | 7,520,380 | |||||||||
| 10,729,630 | |||||||||||||
| Arizona—1.9% | |||||||||||||
| AA | 1,275 | Salt River Proj. Agricultural Impvt. & Pwr. Dist. RB, Ser. A, 5.00%, 1/01/35 | 01/16 @ 100 | 1,326,778 | |||||||||
| San. Luis Fac. Dev. Corp. RB, Sr. Lien Proj. Regl. Detention Ctr. Proj., | |||||||||||||
| NR | 210 | 6.25%, 5/01/15 | 05/10 @ 107 | 205,050 | |||||||||
| NR | 210 | 7.00%, 5/01/20 | 05/10 @ 107 | 203,956 | |||||||||
| NR | 420 | 7.25%, 5/01/27 | 05/10 @ 107 | 405,901 | |||||||||
| 2,141,685 | |||||||||||||
| California—11.5% | |||||||||||||
| California Cnty. Tobacco Sec. Corp. RB, | |||||||||||||
| BBB- | 585 | Sub. B, Zero Coupon, 6/01/46 | 06/16 @ 17.602 | 55,979 | |||||||||
| BB | 3,095 | Sub. C, Zero Coupon, 6/01/55 | 06/16 @ 8.90 | 142,587 | |||||||||
| NR | 3,955 | Sub. D, Zero Coupon, 6/01/55 | 06/16 @ 6.219 | 116,000 | |||||||||
| AAA | 5,000 | California St. GO, 5.00%, 3/01/33 | 03/15 @ 100 | 5,155,650 | |||||||||
| AAA | 4,295 | Golden St. Tobacco Sec. Corp. RB, 5.00%, 6/01/45 | 06/15 @ 100 | 4,396,147 | |||||||||
| AAA | 2,055 | Los Angeles Dept. of Wtr. & Pwr. Sys. RB, 5.00%, 7/01/31, FSA | 07/15 @ 100 | 2,139,728 | |||||||||
| AAA | 1,055 | Los Angeles Unified Sch. Dist. GO, Election of 2004, Ser. F, 5.00%, 7/01/30, FGIC | 07/16 @ 100 | 1,103,118 | |||||||||
| 13,109,209 | |||||||||||||
| Colorado—3.0% | |||||||||||||
| AAA | 10,000 | Northwest Pkwy. Pub. Hwy. Auth. RB, Ser. B, Zero Coupon, 6/15/30, FSA | 06/11 @ 31.387 | 2,464,300 | |||||||||
| Baa2 | 440 | Park Creek Met. Dist. Ppty. Tax RB, 5.50%, 12/01/37 | 12/15 @ 101 | 449,909 | |||||||||
| AAA | 445 | Springs Co. Utils. RB, Ser. C, 5.00%, 11/15/45, FSA | 11/15 @ 100 | 456,245 | |||||||||
| 3,370,454 | |||||||||||||
| Connecticut—8.6% | |||||||||||||
| Mashantucket Western Pequot Tribe Spec. RB, | |||||||||||||
| Baa3 | 1,500 | Ser. A, 5.50%, 9/01/28 | 09/09 @ 101 | 1,539,615 | |||||||||
| Baa3 | 8,000 | 3 | Ser. B, 5.75%, 9/01/27 | 09/07 @ 102 | 8,204,640 | ||||||||
| 9,744,255 | |||||||||||||
| Florida—8.7% | |||||||||||||
| NR | 1,730 | Arborwood Cmnty. Dev. Dist. SA, Master Infrastructure Proj., Ser. B, 5.10%, 5/01/14 | No Opt. Call | 1,710,953 | |||||||||
| NR | 3,300 | Hillsborough Cnty. Ind. Dev. Auth. RB, Nat. Gypsum Proj., Ser. A, 7.125%, 4/01/30 | 10/10 @ 101 | 3,591,555 | |||||||||
| BB+ | 2,045 | Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21 | 11/14 @ 100 | 2,283,120 | |||||||||
| AAA | 645 | Peace River/Manasota Regl. Wtr. Sply. Auth. RB, 5.00%, 10/01/30, FSA | 10/15 @ 100 | 672,722 | |||||||||
| NR | 1,630 | Sumter Landing Cmnty. Dev. Dist. RB, Ser B, 5.70%, 10/01/38 | 10/15 @ 100 | 1,628,272 | |||||||||
| 9,886,622 | |||||||||||||
| Illinois—9.1% | |||||||||||||
| NR | 850 | 3 | Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23 | No Opt. Call | 852,456 | ||||||||
| AAA | 520 | 4 | Chicago Brd. of Ed. Sch. Reform GO, 5.75%, 12/01/07, AMBAC | N/A | 548,023 | ||||||||
| AA+ | 5,000 | Edl. Fac. Auth. RB, Northwestern Univ. Proj., 5.00%, 12/01/33 | 12/13 @ 100 | 5,137,250 | |||||||||
| Fin. Auth. RB, | |||||||||||||
| BB+ | 295 | Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37 | 02/15 @ 100 | 297,006 | |||||||||
| Baa2 | 375 | Student Hsg., MJH Ed. Asst. Living Proj., Ser. A, 5.125%, 6/01/35 | 06/14 @ 100 | 367,627 | |||||||||
| Baa3 | 300 | Student Hsg., MJH Ed. Asst. Living Proj., Ser. B, 5.375%, 6/01/35 | 06/14 @ 100 | 294,237 | |||||||||
| O’Hare Intl. Arpt. RB, | |||||||||||||
| AAA | 1,000 | Ser. A, 5.00%, 1/01/30, MBIA | 01/15 @ 100 | 1,032,810 | |||||||||
| AAA | 1,755 | Ser. A, 5.00%, 1/01/33, FGIC | 01/16 @ 100 | 1,812,266 | |||||||||
| 10,341,675 | |||||||||||||
1
BlackRock Strategic Municipal Trust (BSD) (continued)
| Principal | |||||||||||||
| Amount | Option Call | ||||||||||||
| Rating1 | (000) | Description | Provisions2 | Value | |||||||||
| Kentucky—11.9% | |||||||||||||
| AAA | $32,345 | Econ. Dev. Fin. Sys. RB, Norton Hlth. Care, Inc. Proj., Ser. B, Zero Coupon, 10/01/24, MBIA | No Opt. Call | $ 13,529,914 | |||||||||
| Maine—1.5% | |||||||||||||
| AAA | 1,600 | Hlth. & Higher Edl. Fac. Auth. RB, 5.00%, 7/01/29, MBIA | 07/15 @ 100 | 1,661,040 | |||||||||
| Massachusetts—2.7% | |||||||||||||
| AA | 440 | Massachusetts St. Wtr. Res. Auth. Gen. RB, Ser. A, 5.00%, 8/01/41 | 08/16 @ 100 | 454,304 | |||||||||
| AAA | 2,500 | Wtr. Res. Auth. RB, Ser. B, 5.00%, 8/01/35, MBIA | 08/17 @ 100 | 2,598,525 | |||||||||
| 3,052,829 | |||||||||||||
| Michigan—1.9% | |||||||||||||
| AAA | 2,000 | 4 | Hosp. Fin. Auth. RB, Mercy Hlth. Svcs. Proj., 5.75%, 8/15/09, MBIA | N/A | 2,142,760 | ||||||||
| Missouri—1.9% | |||||||||||||
| A | 2,000 | 4 | Hlth. & Edl. Facs. Auth. Hlth. Facs. RB, St. Anthony’s Med. Ctr. Proj., 6.125%, 12/01/10 | N/A | 2,216,980 | ||||||||
| Multi-State—5.7% | |||||||||||||
| Baa1 | 2,000 | 3 | Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/50 | 11/10 @ 100 | 2,237,040 | ||||||||
| A3 | 4,000 | 3 | MuniMae TE Bond Subsidiary LLC, Ser. A, 6.875%, 6/30/49 | 06/09 @ 100 | 4,287,760 | ||||||||
| 6,524,800 | |||||||||||||
| New Jersey—0.5% | |||||||||||||
| NR | 645 | Middlesex Cnty. Imprt. Auth. RB, Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37 | 01/15 @ 100 | 626,063 | |||||||||
| New York—14.3% | |||||||||||||
| NR | 315 | Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35 | 05/15 @ 102 | 294,953 | |||||||||
| AA- | 4,730 | Liberty Dev. Corp. RB., 5.25%, 10/01/35 | No Opt. Call | 5,207,257 | |||||||||
| Aa1 | 2,500 | Mtg. Agcy. Homeowner Mtg. RB, Ser. 85, 5.70%, 10/01/17 | 09/09 @ 100 | 2,584,050 | |||||||||
| B- | 6,000 | New York City Indl. Dev. Agcy. RB, American Airlines, JFK Intl. Arpt. Proj., 7.75%, 8/01/31 | 08/16 @ 101 | 6,610,980 | |||||||||
| AAA | 1,500 | Sales Tax Asset Receivable Corp. RB, Ser. A, 5.00%, 10/15/32, AMBAC | 10/14 @ 100 | 1,563,405 | |||||||||
| 16,260,645 | |||||||||||||
| Ohio—5.6% | |||||||||||||
| AAA | 6,265 | Air Qual. Dev. Auth. RB, 4.80%, 1/01/34, FGIC | 07/15 @ 100 | 6,311,110 | |||||||||
| Oklahoma—1.2% | |||||||||||||
| B- | 1,225 | Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35 | No Opt. Call | 1,341,485 | |||||||||
| Pennsylvania—13.9% | |||||||||||||
| AAA | 7,000 | Allegheny Cnty. San. Swr. Auth. RB, Ser. A, 5.00%, 12/01/30, MBIA | 12/15 @ 100 | 7,310,310 | |||||||||
| Econ. Dev. Fin. Auth. RB, | |||||||||||||
| A3 | 700 | Amtrak Proj., Ser. A, 6.125%, 11/01/21 | 05/11 @ 101 | 741,279 | |||||||||
| A3 | 1,000 | Amtrak Proj., Ser. A, 6.25%, 11/01/31 | 05/11 @ 101 | 1,062,670 | |||||||||
| A3 | 1,000 | Amtrak Proj., Ser. A, 6.50%, 11/01/16 | 05/11 @ 101 | 1,084,960 | |||||||||
| NR5 | 1,000 | Amtrak Proj., Ser. G, 5.125%, 12/01/15 | No Opt. Call | 976,940 | |||||||||
| BB- | 3,555 | Exempt Facs., Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36 | 12/09 @ 103 | 3,787,604 | |||||||||
| AAA | 720 | Washington Cnty. Auth. RB, Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC | No Opt. Call | 766,598 | |||||||||
| 15,730,361 | |||||||||||||
| South Carolina—3.6% | |||||||||||||
| Jobs Econ. Dev. Auth. Hosp. Facs. RB Palmetto Hlth. Proj., | |||||||||||||
| BBB+ | 2,225 | 4 | Ser. C, 7.00%, 8/01/13 | N/A | 2,640,252 | ||||||||
| BBB+ | 275 | Ser. C, 7.00%, 8/01/30 | 08/13 @ 100 | 316,720 | |||||||||
| AAA | 1,060 | Transp. Infrastructure Bank RB, Ser. A, 5.00%, 10/01/33 | 10/12 @ 100 | 1,088,938 | |||||||||
| 4,045,910 | |||||||||||||
| Tennessee—1.9% | |||||||||||||
| AAA | 2,000 | Memphis Shelby Cnty. Arpt. Auth. RB, Ser. D, 6.00%, 3/01/24, AMBAC | 03/10 @ 101 | 2,126,760 | |||||||||
| Texas—19.1% | |||||||||||||
| Baa2 | 730 | Brazos River Auth. PCRB, 5.00%, 3/01/41 | 03/11 @ 100 | 724,554 | |||||||||
| AAA | 4,750 | Harris Cnty. Houston Sports Auth. RB, Ser. A, Zero Coupon, 11/15/38, MBIA | 11/30 @ 61.166 | 801,848 | |||||||||
| AAA | 5,000 | Humble Indpt. Sch. Dist. Sch. Bldg. GO, Ser. B, 5.00%, 2/15/30, FGIC | 02/15 @ 100 | 5,180,750 | |||||||||
| AAA | 4,865 | Katy Indpt. Sch. Dist. GO, Ser. B, 5.00%, 2/15/32 | 02/15 @ 100 | 5,026,518 | |||||||||
| AAA | 4,060 | La Joya Indpt. Sch. Dist. GO, 5.00%, 2/15/34 | 02/14 @ 100 | 4,160,485 | |||||||||
| AAA | 1,500 | Lower Colorado River Auth. RB, Ser. A, 5.50%, 5/15/21, AMBAC | 05/09 @ 101 | 1,584,720 | |||||||||
| AAA | 15,000 | Tpke. Auth. Central Sys. RB, Zero Coupon, 8/15/31, AMBAC | 08/12 @ 32.807 | 3,650,700 | |||||||||
| AA+ | 500 | Wtr. Fin. Asst. GO, 5.75%, 8/01/22 | 08/10 @ 100 | 536,025 | |||||||||
| 21,665,600 | |||||||||||||
2
BlackRock Strategic Municipal Trust (BSD) (continued)
| Principal | |||||||||||||
| Amount | Option Call | ||||||||||||
| Rating1 | (000) | Description | Provisions2 | Value | |||||||||
| Utah—3.7% | |||||||||||||
| Intermountain Pwr. Agcy. RB, | |||||||||||||
| AAA | $ 2,675 | 5.75%, 7/01/19, MBIA | 07/07 @ 102 | $ 2,794,439 | |||||||||
| AAA | 1,325 | 4 | Ser. B, 5.75%, 7/01/07, MBIA | N/A | 1,385,314 | ||||||||
| 4,179,753 | |||||||||||||
| Wisconsin—0.3% | |||||||||||||
| AAA | 365 | Pub. Pwr, Inc. Sys. RB, Ser. A, 5.00%, 7/01/37, AMBAC | 07/15 @ 100 | 376,695 | |||||||||
| Total Long-Term Investments (cost $151,659,008) | 161,116,235 | ||||||||||||
| SHORT-TERM INVESTMENTS—11.9% | |||||||||||||
| Tennessee—7.0% | |||||||||||||
| Montgomery Cnty. Pub. Bldg. Auth. RB, | |||||||||||||
| VMIG1 | 3,000 | 6 | 3.17%, 4/03/06, FRDD | N/A | 3,000,000 | ||||||||
| VMIG1 | 5,000 | 6 | 3.17%, 4/03/06, FRDD | N/A | 5,000,000 | ||||||||
| 8,000,000 | |||||||||||||
| Shares | |||||||||||||
| (000) | |||||||||||||
| MONEY MARKET FUNDS—4.9% | |||||||||||||
| NR | 5,550 | AIM Tax Free Investment Co. Cash Reserve Portfolio | N/A | 5,550,000 | |||||||||
| Total Short-Term Investments (cost $13,550,000) | 13,550,000 | ||||||||||||
| Total Investments—153.9% (cost $165,209,0087) | $174,666,235 | ||||||||||||
| Other assets in excess of liabilities—0.7% | 839,204 | ||||||||||||
| Preferred shares at redemption value, including dividends payable—(54.6)% | (62,011,038) | ||||||||||||
| Net Assets Applicable to Common Shareholders—100% | $113,494,401 | ||||||||||||
| 1 | Using the higher of Standard & Poor’s, Moody’s Investors Service or Fitch’s ratings. | ||
| 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 | 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 March 31, 2006, the Trust held 13.7% of its net assets, with a current market value of $15,581,896, in securities restricted as to resale. | ||
| 4 | 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. | ||
| 5 | Security is deemed to be of investment grade quality by the investment advisor. | ||
| 6 | For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of March 31, 2006. | ||
| 7 | Cost for Federal income tax purposes is $165,172,716. The net unrealized appreciation on a tax basis is $9,493,519, consisting of $9,787,325 gross unrealized appreciation and $293,806 gross unrealized depreciation. |
KEY TO ABBREVIATIONS
| AMBAC | — | American Municipal Bond Assurance Corp. | MBIA | — | Municipal Bond Insurance Assoc. | ||||||
| FGIC | — | Financial Guaranty Insurance Co. | PCRB | — | Pollution Control Revenue Bond | ||||||
| FRDD | — | Floating Rate Daily Demand | RB | — | Revenue Bond | ||||||
| FSA | — | Financial Security Assurance | SA | — | Special Assesment | ||||||
| GO | — | General Obligation | TA | — | Tax Allocation | ||||||
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 its principal executive and principal 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____________________________________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___________________________________