Edgar Filing: BLACKROCK MUNICIPAL INCOME TRUST

BLACKROCK MUNICIPAL INCOME TRUST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-10339

Name of Fund: BlackRock Municipal Income Trust (BFK)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 04/30/2017

Date of reporting period: 04/30/2017

Item 1 – Report to Stockholders

APRIL 30, 2017

ANNUAL REPORT

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

BlackRock Long-Term Municipal Advantage Trust (BTA)

BlackRock Municipal 2020 Term Trust (BKK)

BlackRock Municipal Income Trust (BFK)

BlackRock Strategic Municipal Trust (BSD)

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

In the 12 months ended April 30, 2017, risk assets, such as stocks and high-yield bonds, delivered strong performance. These markets showed great resilience during a period with big surprises, including the United Kingdom’s vote to leave the European Union and the outcome of the U.S. presidential election, which brought only brief spikes in equity market volatility. However, high-quality assets with more interest rate sensitivity struggled. U.S. Treasuries posted negative returns as rising energy prices, modest wage increases and steady job growth led to expectations of higher inflation and anticipation of interest rate increases by the U.S. Federal Reserve (the “Fed”).

The global reflationary theme — rising nominal growth, wages and inflation — was the dominant driver of asset returns during the period, outweighing significant political upheavals and uncertainty. Reflationary expectations accelerated after the U.S. election and continued into the beginning of 2017, stoked by expectations that the new presidential administration’s policies would provide an extra boost to U.S. growth. More recently, however, growing skepticism about the likelihood of significant near-term U.S. tax reform and infrastructure spending has tempered enthusiasm around the reflation trade. Nonetheless, markets have remained generally positive thus far in 2017 and continue to exhibit low levels of volatility by historical standards. Although political uncertainty persisted, benign credit conditions and expectations for economic growth have kept markets fairly tranquil. The period ended with a global risk asset rally following centrist Emmanuel Macron’s win in the first round of the French presidential election and better-than-expected U.S. and European corporate earnings.

Although economic momentum is gaining traction, the capacity for rapid global growth is restrained by structural factors, including an aging population, low productivity growth and excess savings, as well as cyclical factors, like the Fed moving toward the normalization of monetary policy and the length of the current expansion. Tempered economic growth and high valuations across most assets have set the stage for muted returns going forward.

Equity markets still present opportunities, although the disparity between winners and losers is widening — a dynamic that increases both the risk and return potential of active investing. Fixed income investors are also facing challenges as many sectors are exhibiting higher valuations while rates remain at historically low levels.

In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC


Total Returns as of April 30, 2017
	6-month			12-month
U.S. large cap equities (S&P 500^® Index)		13.32	%		17.92	%
U.S. small cap equities (Russell 2000^® Index)		18.37			25.63
International equities (MSCI Europe, Australasia, Far East Index)		11.47			11.29
Emerging market equities (MSCI Emerging Markets Index)		8.88			19.13
3-month Treasury bills (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)		0.23			0.40
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)		(3.13	)		(2.68	)
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)		(0.67	)		0.83
Tax-exempt municipal bonds (S&P Municipal Bond Index)		(0.41	)		0.57
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)		5.30			13.29
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.



2		THIS PAGE NOT PART OF YOUR FUND REPORT


Table of Contents


	Page
The Markets in Review		2
Annual Report:
Municipal Market Overview		4
The Benefits and Risks of Leveraging		5
Derivative Financial Instruments		5
Trust Summaries		6
Financial Statements:
Schedules of Investments		16
Statements of Assets and Liabilities		49
Statements of Operations		50
Statements of Changes in Net Assets		51
Statements of Cash Flows		54
Financial Highlights		55
Notes to Financial Statements		60
Report of Independent Registered Public Accounting Firm		72
Automatic Dividend Reinvestment Plan		73
Officers and Trustees		74
Additional Information		77



ANNUAL REPORT	APRIL 30, 2017	3


Municipal Market Overview

For the Reporting Period Ended April 30, 2017

Municipal Market Conditions

Municipal bonds generated modestly positive performance for the period, in spite of vastly rising interest rates as a result of generally stronger economic data, signs of inflation pressures, Federal Reserve (“Fed”) monetary policy normalization, and market expectations for pro-growth fiscal policy. However, ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in strong demand for fixed income investments. Investors favored the income, relative yield, and stability of municipal bonds amid bouts of interest rate volatility (bond prices rise as rates fall) resulting from the United Kingdom’s decision to leave the European Union, the contentious U.S. election, and widening central bank divergence — i.e., policy easing outside the United States while the Fed slowly commences policy tightening. During the 12 months ended April 30, 2017, municipal bond funds garnered net inflows of approximately $14 billion (based on data from the Investment Company Institute).

For the same 12-month period, total new issuance remained robust from a historical perspective at $429 billion (significantly above the $384 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 58%) as issuers continued to take advantage of low interest rates and a flatter yield curve to reduce their borrowing costs.

S&P Municipal Bond Index

Total Returns as of April 30, 2017

6 months: (0.41)%

12 months: 0.57%

A Closer Look at Yields

LOGO

From April 30, 2016 to April 30, 2017, yields on AAA-rated 30-year municipal bonds increased by 44 basis points (“bps”) from 2.58% to 3.02%, while 10-year rates rose by 53 bps from 1.61% to 2.14% and 5-year rates increased 43 bps from 0.98% to 1.41% (as measured by Thomson Municipal Market Data). The municipal yield curve modestly steepened over the 12-month period with the spread between 2- and 30-year maturities steepening by 10 bps and the spread between 2- and 10-year maturities steepening by 19 bps.

During the same time period, on a relative basis, tax-exempt municipal bonds broadly outperformed U.S. Treasuries with the greatest outperformance experienced in the front-end of the yield curve. In absolute terms, the positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities became increasingly scarce. More broadly, municipal bonds came under pressure post the November U.S. election as a result of uncertainty surrounding potential U.S. tax-reform. The index has now recovered nearly 86% of performance lost post-election, which is quite impressive given that fund flows have only rebounded by about 31%. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

The majority of municipal credits remain strong, despite well-publicized distress among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — have exhibited markedly improved credit fundamentals during the slow national recovery. However, several states with the largest unfunded pension liabilities have seen their bond prices decline noticeably and remain vulnerable to additional price deterioration. On the local level, Chicago’s credit quality downgrade is an outlier relative to other cities due to its larger pension liability and inadequate funding remedies. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of April 30, 2017, and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

The Standard & Poor’s Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the alternative minimum tax. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.



4	ANNUAL REPORT	APRIL 30, 2017


The Benefits and Risks of Leveraging

The Trusts may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Trust on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Trusts (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trusts’ shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV.

To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Trust’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Trust with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Trust’s financing cost of leverage is significantly lower than the income earned on a Trust’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Trusts’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Trusts had not used leverage. Furthermore, the value of the Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of the Trusts’ obligations under their respective leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAVs positively or negatively. Changes in the future direction of interest rates are very diffi-

cult to predict accurately, and there is no assurance that the Trusts’ intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Trust’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Trust’s Common Shares than if the Trust were not leveraged. In addition, each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Trusts to incur losses. The use of leverage may limit a Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Trust incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of the Trusts’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Trusts’ investment adviser will be higher than if the Trusts did not use leverage.

To obtain leverage, each Trust has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) or Auction Market Preferred Shares (“AMPS”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Trust is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Trust may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Trust may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Trust segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Trust’s obligations under the TOB Trust (including accrued interest), a TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements under the 1940 Act.


Derivative Financial Instruments

The Trusts may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other asset without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty

to the transaction or illiquidity of the instrument. The Trusts’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2017	5


Trust Summary as of April 30, 2017		BlackRock Investment Quality Municipal Trust, Inc.


Trust Overview

BlackRock Investment Quality Municipal Trust, Inc.’s (BKN) (the “Trust”) investment objective is to provide high current income exempt from regular U.S. federal income tax consistent with the preservation of capital. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in securities rated investment grade at the time of investment. The Trust may invest up to 20% of its assets in unrated securities that are deemed by the investment adviser to be of comparable quality. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.


Trust Information
Symbol on New York Stock Exchange (“NYSE”)		BKN
Initial Offering Date		February 19, 1993
Yield on Closing Market Price as of April 30, 2017 ($14.59)¹		5.10%
Tax Equivalent Yield²		9.01%
Current Monthly Distribution per Common Share³		$0.0620
Current Annualized Distribution per Common Share³		$0.7440
Economic Leverage as of April 30, 2017⁴		37%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

The distribution rate is not constant and is subject to change.

⁴

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.


Performance

Returns for the 12 months ended April 30, 2017 were as follows:


	Returns Based On
	Market Price			NAV
BKN^1,2		(7.55	)%		(1.84	)%
Lipper General & Insured Municipal Debt Funds (Leveraged)³		(2.05	)%		(0.40	)%

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

The Trust moved from a premium to NAV to a discount during the period, which accounts for the difference between performance based on price and performance based on NAV.

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

•

Municipal bonds registered a small, positive total return in the 12 months ended April 30, 2017. After moving modestly higher early in the period, municipal bonds began to lose ground in September and October due to a pick-up in new tax-exempt issuance and rising yields in the U.S. Treasury market. (Prices and yields move in opposite directions.) Municipal issues subsequently plunged in November once Donald Trump’s election victory caused investors to adjust their expectations in favor of stronger growth and tighter Fed policy. However, municipal bonds retraced much of their November downturn in the final five months of the period. The favorable combination of lower new issuance and recovering investor demand fueled a recovery in the market, which enabled it to finish with a return slightly above the break-even mark.

•

In this environment, the Trust’s holdings in the higher-quality, AA and A rated credit tiers did not generate enough yield to offset their price declines. However, the Trust’s performance was aided by its positions in higher-quality pre-refunded securities.

•

At a time of rising yields, the Trust’s positions in longer-dated and longer-duration bonds detracted from performance. At the sector level, holdings in health care, tax-backed (local) and utilities issues further detracted.

•

The Trust’s positions in lower-rated, higher-yielding sectors contributed the most to performance. Specifically, holdings in the tobacco and corporate municipal sectors added value. Positions in lower-quality issues rated BBB and below also made positive contributions.

•

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Trust’s positioning had a positive impact on returns.

•

The Trust continued to employ leverage, which helped augment income. However, since leverage also amplifies the effect of market movements, it was a net detractor from overall performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.



6	ANNUAL REPORT	APRIL 30, 2017


		BlackRock Investment Quality Municipal Trust, Inc.


Market Price and Net Asset Value Per Share Summary


	4/30/17		4/30/16		Change			High		Low
Market Price	$	14.59	$	16.94		(13.87	)%	$	18.30	$	13.92
Net Asset Value	$	15.39	$	16.83		(8.56	)%	$	17.52	$	14.92

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*


Sector Allocation	4/30/17			4/30/16
Health		23	%		23	%
Education		16			15
County/City/Special District/School District		15			16
Transportation		14			14
State		12			10
Utilities		9			12
Corporate		6			7
Tobacco		5			3

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector subclassifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector subclassifications for reporting ease.



Call/Maturity Schedule³
Calendar Year Ended December 31,
2017	4	%
2018	5
2019	5
2020	8
2021	10

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.


Credit Quality Allocation¹	4/30/17			4/30/16
AAA/Aaa		5	%		6	%
AA/Aa		43			46
A		29			28
BBB/Baa		15			11
BB/Ba		3			2
B		1			1
N/R²		4			6

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2017 and April 30, 2016, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Trust’s total investments.



ANNUAL REPORT	APRIL 30, 2017	7


Trust Summary as of April 30, 2017		BlackRock Long-Term Municipal Advantage Trust

Trust Overview

BlackRock Long-Term Municipal Advantage Trust’s (BTA) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income tax. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal obligations and derivative instruments with exposure to such municipal obligations, in each case that are expected to pay interest or income that is exempt from U.S. federal income tax (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests, under normal market conditions, primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment and, under normal market conditions, the Trust’s municipal bond portfolio will have a dollar-weighted average maturity of greater than 10 years. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.


Trust Information
Symbol on NYSE		BTA
Initial Offering Date		February 28, 2006
Yield on Closing Market Price as of April 30, 2017 ($11.66)¹		5.61%
Tax Equivalent Yield²		9.91%
Current Monthly Distribution per Common Share³		$0.0545
Current Annualized Distribution per Common Share³		$0.6540
Economic Leverage as of April 30, 2017⁴		40%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

The distribution rate is not constant and is subject to change.

⁴

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.


Performance

Returns for the 12 months ended April 30, 2017 were as follows:


	Returns Based On
	Market Price			NAV
BTA^1,2		0.28	%		0.53	%
Lipper General & Insured Municipal Debt Funds (Leveraged)³		(2.05	)%		(0.40	)%

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on price and performance based on NAV.

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

•

The Trust’s positions in lower-quality securities, including BBB rated and non-investment grade bonds, outperformed higher-quality issues due to their higher yields and tightening yield spreads. At the sector level, positions in tobacco and project-finance issues, both of which tend to be on the lower end of quality spectrum, were top performers.

•

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Trust’s positioning had a positive impact on returns.

•

The Trust’s positions in intermediate and longer-dated maturities, which sold off more than short-dated maturities, detracted from performance. In addition, its holdings in higher-quality securities lagged their lower-quality counterparts.

•

Reinvestment was a further drag on results. The proceeds of higher-yielding bonds that matured or were called need to be reinvested at materially lower prevailing rates, which led the Trust to cut its dividend during the period. (A call is when an issuer redeems a bond prior to its maturity date.)

•

The Trust continued to employ leverage, which helped augment income. However, since leverage also amplifies the effect of market movements, it was a net detractor from overall performance.



8	ANNUAL REPORT	APRIL 30, 2017


		BlackRock Long-Term Municipal Advantage Trust

Market Price and Net Asset Value Per Share Summary


	4/30/17		4/30/16		Change			High		Low
Market Price	$	11.66	$	12.28		(5.05	)%	$	13.44	$	10.73
Net Asset Value	$	12.27	$	12.89		(4.81	)%	$	13.37	$	11.77

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*


Sector Allocation	4/30/17			4/30/16
Health		19	%		19	%
County/City/Special District/School District		16			12
Transportation		15			15
Utilities		13			16
Education		11			11
Tobacco		10			10
State		7			8
Corporate		6			8
Housing		3			1



Call/Maturity Schedule³
Calendar Year Ended December 31,
2017	7	%
2018	3
2019	16
2020	12
2021	17

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.


Credit Quality Allocation¹	4/30/17			4/30/16
AAA/Aaa		5	%		5	%
AA/Aa		40			42
A		12			16
BBB/Baa		21			16
BB/Ba		6			7
B		6			4
N/R²		10			10

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.



ANNUAL REPORT	APRIL 30, 2017	9


Trust Summary as of April 30, 2017		BlackRock Municipal 2020 Term Trust

Trust Overview

BlackRock Municipal 2020 Term Trust’s (BKK) (the “Trust”) investment objectives are to provide current income exempt from regular U.S. federal income tax and to return $15 per Common Share (the initial public offering price per Common Share) to holders of Common Shares on or about December 31, 2020. The Trust seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its managed assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its managed assets in municipal bonds that are investment grade, or if unrated, deemed to be of comparable quality by the investment adviser, at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. There is no assurance that the Trust will achieve its investment objective of returning $15.00 per Common Share.


Trust Information
Symbol on NYSE		BKK
Initial Offering Date		September 30, 2003
Termination Date (on or about)		December 31, 2020
Yield on Closing Market Price as of April 30, 2017 ($15.73)¹		3.42%
Tax Equivalent Yield²		6.04%
Current Monthly Distribution per Common Share³		$0.0448
Current Annualized Distribution per Common Share³		$0.5376
Economic Leverage as of April 30, 2017⁴		5%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

The distribution rate is not constant and is subject to change.

⁴

Represents AMPS and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to AMPS and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

Performance

Returns for the 12 months ended April 30, 2017 were as follows:


	Returns Based On
	Market Price			NAV
BKK^1,2		0.85	%		(0.78	)%
Lipper General & Insured Municipal Debt Funds (Leveraged)³		(2.05	)%		(0.40	)%

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

The Trust moved from a discount to NAV to a premium during the period, which accounts for the difference between performance based on price and performance based on NAV.

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

•

Holdings in the corporate municipal bond sector detracted from performance, as a specific issuer received a multi-notch downgrade due to its deteriorating credit fundamentals.

•

Reinvestment was a further drag on results, as the proceeds of higher-yielding bonds that matured or were called need to be reinvested at materially lower prevailing rates. (A call is when an issuer redeems a bond prior to its maturity date.)

•

The Trust’s more-seasoned holdings, which produced generous yields compared to current market rates, were additive to performance. At the sector level, tax-backed (state), education and health care issues were positive contributors.

•

The Trust continued to employ leverage, which helped augment income. However, since leverage also amplifies the effect of market movements, it was a net detractor from overall performance.



10	ANNUAL REPORT	APRIL 30, 2017


		BlackRock Municipal 2020 Term Trust

Market Price and Net Asset Value Per Share Summary


	4/30/17		4/30/16		Change			High		Low
Market Price	$	15.73	$	16.14		(2.54	)%	$	17.01	$	15.17
Net Asset Value	$	15.60	$	16.27		(4.12	)%	$	16.35	$	15.43

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*


Sector Allocation	4/30/17			4/30/16
Utilities		18	%		17	%
Transportation		17			15
County/City/Special District/School District		16			14
State		14			13
Health		12			12
Education		11			10
Corporate		6			12
Tobacco		4			4
Housing		2			3



Call/Maturity Schedule³
Calendar Year Ended December 31,
2017	1	%
2018	5
2019	19
2020	53
2021	5

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.


Credit Quality Allocation¹	4/30/17			4/30/16
AAA/Aaa		5	%		6	%
AA/Aa		33			25
A		31			37
BBB/Baa		17			19
BB/Ba		3			4
B		1			—
CCC		1			—
N/R²		9			9

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2017 and April 30, 2016, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and 4%, respectively, of the Trust’s total investments.



ANNUAL REPORT	APRIL 30, 2017	11


Trust Summary as of April 30, 2017		BlackRock Municipal Income Trust


Trust Overview

BlackRock Municipal Income Trust’s (BFK) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade, or if unrated, deemed to be of comparable quality by the investment adviser, at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.


Trust Information
Symbol on NYSE		BFK
Initial Offering Date		July 27, 2001
Yield on Closing Market Price as of April 30, 2017 ($14.00)¹		5.57%
Tax Equivalent Yield²		9.84%
Current Monthly Distribution per Common Share³		$0.0650
Current Annualized Distribution per Common Share³		$0.7800
Economic Leverage as of April 30, 2017⁴		40%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

The distribution rate is not constant and is subject to change.

⁴


Performance

Returns for the 12 months ended April 30, 2017 were as follows:


	Returns Based On
	Market Price			NAV
BFK^1,2		(3.96	)%		(0.78	)%
Lipper General & Insured Municipal Debt Funds (Leveraged)³		(2.05	)%		(0.40	)%

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

The Trust moved from a premium to NAV to a discount during the period, which accounts for the difference between performance based on price and performance based on NAV.

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

•

Consistent with the broader market environment, Trust holdings with maturities of 15 years and above were hardest hit by the underperformance of longer-term bonds relative to short-term issues.

•

Lower-quality investments typically outperformed their higher-rated counterparts during the period. The Trust’s holdings in non-investment grade and unrated securities therefore generated healthy relative performance, as did its positions in the lower-quality corporate and tobacco sectors. While the Trust’s positions in higher-quality issues generally lagged non-investment grade bonds, its performance was helped by an allocation to higher-quality pre-refunded securities. The higher level of income in this segment translated to lower sensitivity to the market downturn of late 2016, aiding its return over the full 12 months.

•

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Trust’s positioning had a positive impact on returns.

•

The Trust continued to employ leverage, which helped augment income. However, since leverage also amplifies the effect of market movements, it was a net detractor from overall performance.



12	ANNUAL REPORT	APRIL 30, 2017


		BlackRock Municipal Income Trust


Market Price and Net Asset Value Per Share Summary


	4/30/17		4/30/16			Change			High		Low
Market Price	$	14.00	$	15.44			(9.33	)%	$	16.02	$	13.42
Net Asset Value	$	14.24	$	15.21	¹		(6.38	)%	$	15.64	$	13.87

The net asset value does not reflect adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and therefore differs from amount reported in the Financial Highlights.

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*


Sector Allocation	4/30/17			4/30/16
Transportation		23	%		21	%
Utilities		15			15
County/City/Special District/School District		14			12
Health		13			14
State		11			11
Education		10			10
Corporate		7			11
Tobacco		7			6



Call/Maturity Schedule³
Calendar Year Ended December 31,
2017	7	%
2018	4
2019	16
2020	14
2021	15

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.


Credit Quality Allocation¹	4/30/17			4/30/16
AAA/Aaa		8	%		8	%
AA/Aa		44			41
A		16			21
BBB/Baa		20			16
BB/Ba		4			4
B		2			1
N/R²		6			9

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2017 and April 30, 2016, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 2%, respectively, of the Trust’s total investments.



ANNUAL REPORT	APRIL 30, 2017	13


Trust Summary as of April 30, 2017		BlackRock Strategic Municipal Trust


Trust Overview

BlackRock Strategic Municipal Trust’s (BSD) (the “Trust”) investment objectives are to provide current income that is exempt from regular U.S. federal income tax and to invest in municipal bonds that over time will perform better than the broader municipal bond market. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in investments exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests at least 80% of its assets in securities that are investment grade, or if unrated, deemed to be of comparable quality by the investment adviser, at the time of investment and, under normal market conditions, primarily invests in municipal bonds with long-term maturities in order to maintain a weighted average maturity of 15 years or more, but the dollar-weighted average maturity of obligations held by the Trust may be shortened, depending on market conditions. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objectives will be achieved.


Trust Information
Symbol on NYSE		BSD
Initial Offering Date		August 25, 1999
Yield on Closing Market Price as of April 30, 2017 ($13.67)¹		5.71%
Tax Equivalent Yield²		10.09%
Current Monthly Distribution per Common Share³		$0.0650
Current Annualized Distribution per Common Share³		$0.7800
Economic Leverage as of April 30, 2017⁴		40%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

The distribution rate is not constant and is subject to change.

⁴


Performance

Returns for the 12 months ended April 30, 2017 were as follows:


	Returns Based On
	Market Price			NAV
BSD^1,2		(3.85	)%		(0.19	)%
Lipper General & Insured Municipal Debt Funds (Leveraged)³		(2.05	)%		(0.40	)%

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on price and performance based on NAV.

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Trust’s absolute performance based on NAV:

•

The Trust’s positions in lower-quality securities, including BBB rated and non-investment grade bonds, outperformed higher-quality issues due to their higher yields and tightening yield spreads. At the sector level, positions in tobacco and corporate municipal issues, both of which tend to be on the lower end of quality spectrum, were top performers. Conversely, portfolio holdings in higher-quality securities generally underperformed.

•

Positions in pre-refunded securities aided performance, as short-term issues with lower durations (less interest rate sensitivity) outperformed longer-dated bonds. Investments in bonds with intermediate and longer-dated maturities, which sold off more than short-dated securities, detracted.

•

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Trust’s positioning had a positive impact on returns.

•

The Trust continued to employ leverage, which helped augment income. However, since leverage also amplifies the effect of market movements, it was a net detractor from overall performance.



14	ANNUAL REPORT	APRIL 30, 2017


		BlackRock Strategic Municipal Trust


Market Price and Net Asset Value Per Share Summary


	4/30/17		4/30/16		Change			High		Low
Market Price	$	13.67	$	15.02		(8.99	)%	$	15.98	$	13.03
Net Asset Value	$	14.21	$	15.04		(5.52	)%	$	15.50	$	13.80

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*


Sector Allocation	4/30/17			4/30/16
Transportation		24	%		24	%
Health		16			18
County/City/Special District/School District		16			10
Utilities		12			14
State		10			9
Education		9			11
Corporate		7			9
Tobacco		5			5
Housing		1			—



Call/Maturity Schedule³
Calendar Year Ended December 31,
2017	4	%
2018	6
2019	17
2020	12
2021	13

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.


Credit Quality Allocation¹	4/30/17			4/30/16
AAA/Aaa		6	%		9	%
AA/Aa		43			41
A		17			25
BBB/Baa		20			11
BB/Ba		4			4
B		2			1
N/R²		8			9

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2017 and April 30, 2016, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 2%, respectively, of the Trust’s total investments.



ANNUAL REPORT	APRIL 30, 2017	15

Schedule of Investments April 30, 2017

BlackRock Investment Quality Municipal Trust, Inc. (BKN)

(Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value
Arizona — 8.4%
Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42	$	3,300	$	3,482,457
City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, 5.00%, 7/01/45 (a)		455		457,698
County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group, Series A:
3.25%, 1/01/37		2,895		2,764,754
4.00%, 1/01/38		2,000		2,020,720
County of Pinal Arizona Electric District No.3, Refunding RB:
4.75%, 7/01/21 (b)		680		773,833
4.75%, 7/01/31		3,070		3,359,378
Salt Verde Financial Corp., RB, Senior:
5.00%, 12/01/32		1,035		1,191,958
5.00%, 12/01/37		4,585		5,351,383
University Medical Center Corp., RB, 6.50%, 7/01/19 (b)		750		836,272
University Medical Center Corp., Refunding RB, 6.00%, 7/01/21 (b)		1,600		1,898,144

				22,136,597
Arkansas — 2.0%
City of Benton Arkansas, RB, 4.00%, 6/01/39		755		782,829
City of Fort Smith Arkansas Water & Sewer Revenue, Refunding RB, 4.00%, 10/01/40		1,250		1,281,463
City of Little Rock Arkansas, RB, 4.00%, 7/01/41		2,645		2,697,847
County of Pulaski Arkansas Public Facilities Board, RB, 5.00%, 12/01/42		465		508,863

				5,271,002
California — 22.7%
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 8/15/31		2,300		2,614,502
California Health Facilities Financing Authority, Refunding RB, Adventist Health System West, Series A, 3.00%, 3/01/39		1,130		944,499
California Infrastructure & Economic Development Bank, Refunding RB, Academy Motion Picture Arts and Sciences, Series A 4.00%, 11/01/45		3,330		3,369,993
California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A, 5.25%, 12/01/56 (a)		370		396,437
Carlsbad California Unified School District, GO, Election of 2006, Series B, 0.00%, 5/01/34 (c)		1,500		1,616,820
City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT:
Series A, 4.00%, 3/01/42		2,460		2,456,039
Series A-1, 5.75%, 3/01/34		3,000		3,400,290
Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.00%, 6/01/28		3,075		3,586,342
Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 0.00%, 8/01/34 (c)		2,475		2,454,532
Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2+002, Series E (AGC), 0.00%, 8/01/38 (d)		12,000		4,737,600


Municipal Bonds	Par (000)		Value
California (continued)
Palomar Community College District, GO, CAB, Election of 2006, Series B:
0.00%, 8/01/30 (d)	$	2,270	$	1,457,158
0.00%, 8/01/33 (d)		4,250		1,726,010
0.00%, 8/01/39 (c)		4,000		3,469,680
San Diego Community College District, GO, CAB, Election of 2002, 0.00%, 8/01/33 (c)		4,200		4,796,946
State of California, GO, Refunding, Various Purposes:
5.00%, 6/01/17 (b)		3,070		3,081,912
5.00%, 6/01/17 (b)		1,930		1,937,488
5.00%, 2/01/38		2,000		2,238,060
4.00%, 10/01/44		2,520		2,580,153
State of California, GO, Various Purposes:
5.75%, 4/01/31		3,000		3,268,890
6.00%, 3/01/33		2,270		2,559,879
6.50%, 4/01/33		2,900		3,201,136
5.50%, 3/01/40		3,650		4,054,639

				59,949,005
Connecticut — 0.9%
Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/36		950		1,015,142
South Central Connecticut Regional Water Authority, Refunding RB, 32nd Series B, 4.00%, 8/01/36		1,365		1,427,312

				2,442,454
Delaware — 2.6%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40		1,800		1,936,206
Delaware Transportation Authority, RB:
5.00%, 6/01/45		3,000		3,303,540
5.00%, 6/01/55		1,430		1,546,459

				6,786,205
Florida — 5.6%
Capital Trust Agency Inc., RB, M/F Housing, The Gardens Apartment Project, Series A, 4.75%, 7/01/40		900		909,054
County of Miami-Dade Florida, RB:
CAB, Subordinate Special Obligation, 0.00%, 10/01/32 (d)		5,000		2,570,200
CAB, Subordinate Special Obligation, 0.00%, 10/01/33 (d)		15,375		7,498,234
Series B, AMT, 6.00%, 10/01/32		3,000		3,539,580
County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%, 6/01/32		200		210,792

				14,727,860
Hawaii — 0.2%
Hawaii State Department of Budget & Finance, Refunding RB, Special Purpose, Senior Living, Kahala Nui, 5.25%, 11/15/37		600		637,584
Idaho — 1.2%
Idaho Health Facilities Authority, RB, St. Lukes Health System Project, Series A, 5.00%, 3/01/39		3,000		3,250,650

Portfolio Abbreviations


AGC	Assured Guarantee Corp.	CAB	Capital Appreciation Bonds	ISD	Independent School District
AGM	Assured Guaranty Municipal Corp.	COP	Certificates of Participation	M/F	Multi-Family
AMBAC	American Municipal Bond Assurance Corp.	EDA	Economic Development Authority	NPFGC	National Public Finance Guarantee Corp.
AMT	Alternative Minimum Tax (subject to)	GARB	General Airport Revenue Bonds	PILOT	Payment in Lieu of Taxes
ARB	Airport Revenue Bonds	GO	General Obligation Bonds	RB	Revenue Bonds
BAM	Build America Mutual Assurance Co.	IDA	Industrial Development Authority	S/F	Single-Family

See Notes to Financial Statements.



16	ANNUAL REPORT	APRIL 30, 2017


Schedule of Investments (continued)		BlackRock Investment Quality Municipal Trust, Inc. (BKN)


Municipal Bonds	Par (000)		Value
Illinois — 7.9%
Chicago Public Building Commission, RB, Series A (NPFGC), 7.00%, 1/01/20 (e)	$	5,000	$	5,590,300
City of Chicago Illinois, Refunding ARB, O’Hare International Airport Passenger Facility Charge, Series B, AMT, 4.00%, 1/01/29		2,400		2,456,448
City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, 5.00%, 1/01/41		1,735		1,872,568
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40		1,000		1,066,610
Illinois Finance Authority, Refunding RB:
OSF Healthcare System, 6.00%, 5/15/39		435		478,591
Roosevelt University Project, 6.50%, 4/01/44		1,500		1,585,785
Railsplitter Tobacco Settlement Authority, RB:
6.25%, 6/01/24		5,000		5,018,300
6.00%, 6/01/28		1,700		1,933,903
State of Illinois, GO, 5.00%, 2/01/39		1,000		998,610

				21,001,115
Kansas — 3.7%
County of Johnson Kansas Unified School District No. 512 Shawnee Mission, GO, Refunding, Series B, 3.00%, 10/01/37		1,940		1,742,333
County of Seward Kansas Unified School District No. 480 Liberal, GO, Refunding:
5.00%, 9/01/39		1,085		1,252,274
5.00%, 9/01/39		4,915		5,401,733
Kansas Development Finance Authority, Refunding RB, Sisters Leavenworth:
5.00%, 1/01/20 (b)		1,005		1,104,384
5.00%, 1/01/28		150		161,294

				9,662,018
Kentucky — 6.8%
County of Boyle Kentucky, Refunding RB, Centre College of Kentucky, 5.00%, 6/01/37		4,000		4,452,320
County of Louisville & Jefferson Kentucky Metropolitan Government, Refunding RB, Norton Healthcare, Inc., Series A 4.00%, 10/01/35		870		880,214
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 1/01/40		3,400		3,645,752
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/23 (d)		8,500		7,092,485
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C (c):
0.00%, 7/01/34		1,000		846,480
0.00%, 7/01/39		1,395		1,153,260

				18,070,511
Louisiana — 1.7%
City of Alexandria Louisiana Utilities, RB, 5.00%, 5/01/39		1,790		1,960,247
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35		1,565		1,782,770
Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.50%, 5/01/31		600		662,052

				4,405,069


Municipal Bonds	Par (000)		Value
Maryland — 0.8%
County of Anne Arundel Maryland Consolidated, RB, Special Taxing District, Villages at Two Rivers Project:
5.13%, 7/01/36	$	260	$	260,570
5.25%, 7/01/44		260		260,179
County of Montgomery Maryland, RB, Trinity Health Credit Group, 5.00%, 12/01/45		1,500		1,668,930

				2,189,679
Massachusetts — 4.1%
Massachusetts Development Finance Agency, RB:
Emerson College Issue, Series A, 5.00%, 1/01/47		1,010		1,090,315
Dana-Farber Cancer Institute Issue, Series N, 5.00%, 12/01/46		625		691,144
Emerson College Issue, Series A, 5.25%, 1/01/42		900		1,004,004
Massachusetts Development Finance Agency, Refunding RB:
Boston College Issue, Series T, 4.00%, 7/01/42		2,860		2,939,422
Emmanuel College Issue, Series A, 4.00%, 10/01/46		1,380		1,329,078
International Charter School, 5.00%, 4/15/40		600		630,126
Suffolk University, 4.00%, 7/01/39		1,375		1,357,015
WGBH Educational Foundation Issue, 3.00%, 1/01/42		2,280		1,932,733

				10,973,837
Michigan — 3.8%
Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 7/01/44		360		377,345
Michigan Finance Authority, Refunding RB, Henry Ford Health System, 4.00%, 11/15/46		2,305		2,261,804
Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32		4,150		4,247,857
Royal Oak Michigan Hospital Finance Authority, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (b)		2,750		3,015,100
State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38		60		64,228

				9,966,334
Minnesota — 2.6%
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38		1,905		2,044,675
Minneapolis-St. Paul Metropolitan Airports Commission, Refunding ARB, Sub-Series D, AMT, 5.00%, 1/01/41		460		508,636
Minnesota Higher Education Facilities Authority, RB:
Augsburg College, Series B, 4.25%, 5/01/40		1,895		1,897,028
College of St. Benedict, Series 8-K, 5.00%, 3/01/37		1,055		1,155,077
College of St. Benedict, Series 8-K, 4.00%, 3/01/43		615		618,622
Minnesota Higher Education Facilities Authority, Refunding RB, University of St. Thomas, Series 8-L, 4.00%, 4/01/39		620		635,915

				6,859,953
Mississippi — 2.1%
County of Warren Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, 5.38%, 12/01/35		600		660,492

See Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2017	17


Schedule of Investments (continued)		BlackRock Investment Quality Municipal Trust, Inc. (BKN)


Municipal Bonds	Par (000)		Value
Mississippi (continued)
Mississippi Development Bank, RB, Special Obligation:
CAB, Hinds Community College District (AGM), 5.00%, 4/01/36	$	1,910	$	2,053,346
County of Jackson Limited Tax Note (AGC), 5.50%, 7/01/32		2,655		2,860,895

				5,574,733
Missouri — 3.0%
Missouri Development Finance Board, RB, Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41		1,350		1,433,200
Missouri State Health & Educational Facilities Authority, RB:
A.T. Still University of Health Sciences, 5.25%, 10/01/31		500		556,865
A.T. Still University of Health Sciences, 4.25%, 10/01/32		480		503,645
A.T. Still University of Health Sciences, 5.00%, 10/01/39		750		823,710
Heartland Regional Medical Center, 4.13%, 2/15/43		700		717,115
University of Central Missouri, Series C-2, 5.00%, 10/01/34		1,500		1,663,920
Missouri State Health & Educational Facilities Authority, Refunding RB, Kansas City University of Medicine and Biosciences, Series A:
5.00%, 6/01/42		860		954,179
5.00%, 6/01/47		1,230		1,359,101

				8,011,735
Montana — 0.6%
County of Cascade Montana Elementary School District No. 1 Great Falls, GO:
4.00%, 7/01/34		750		807,135
4.00%, 7/01/35		845		905,561

				1,712,696
Nebraska — 5.3%
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42		900		954,855
County of Douglas Nebraska Hospital Authority No. 3, Refunding RB, Health Facilities Nebraska Methodist Health System, 5.00%, 11/01/45		600		653,748
County of Sarpy Nebraska Hospital Authority No. 1, Refunding RB, Nebraska Medicine:
3.00%, 5/15/46		3,075		2,549,513
4.00%, 5/15/51		1,565		1,568,506
Gretna Public Schools, GO, Refunding, School Building, 3.00%, 12/15/39		1,480		1,276,086
Nebraska Public Power District, Refunding RB, Series A:
5.00%, 1/01/32		2,535		2,863,054
4.00%, 1/01/44		600		607,122
Public Power Generation Agency, Refunding RB:
3.13%, 1/01/35		1,845		1,658,064
3.25%, 1/01/36		2,075		1,876,651

				14,007,599
Nevada — 0.6%
County of Clark Nevada, Refunding ARB, Department of Aviation, Subordinate Lien, Series A-2, 4.25%, 7/01/36		1,500		1,569,810


Municipal Bonds	Par (000)		Value
New Jersey — 7.3%
County of Atlantic New Jersey Improvement Authority, RB, Stockton University Atlantic City, Series A (AGM), 4.00%, 7/01/46	$	2,050	$	2,075,071
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (f)(g)		1,510		58,830
New Jersey EDA, RB, AMT:
Continental Airlines, Inc. Project, 5.25%, 9/15/29		1,335		1,444,390
Continental Airlines, Inc. Project, Series B, 5.63%, 11/15/30		990		1,097,484
Goethals Bridge Replacement Project (AGM), 5.13%, 7/01/42		300		327,567
New Jersey Educational Facilities Authority, Refunding RB, College of New Jersey, Series G, 3.50%, 7/01/31		1,150		1,150,449
New Jersey Health Care Facilities Financing Authority, Refunding RB, Series A:
RWJ Barnabas Health Obligated Group, 4.00%, 7/01/43		2,955		2,982,038
St. Barnabas Health Care System, 4.63%, 7/01/21 (b)		770		870,346
St. Barnabas Health Care System, 5.63%, 7/01/21 (b)		2,560		2,998,221
St. Barnabas Health Care System, 5.00%, 7/01/25		500		562,385
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series AA, 6.50%, 10/01/38		15		15,441
New Jersey State Turnpike Authority, RB, Series E, 5.00%, 1/01/45		2,780		3,072,206
New Jersey Transportation Trust Fund Authority, RB:
CAB, Transportation System, Series A, 0.00%, 12/15/35 (d)		1,600		584,368
Transportation Program, Series AA, 5.00%, 6/15/45		1,350		1,350,810
Transportation Program, Series AA, 5.00%, 6/15/46		600		600,360

				19,189,966
New Mexico — 1.1%
New Mexico Finance Authority, RB, Senior Lien, Series A:
3.25%, 6/01/33		865		867,206
3.25%, 6/01/34		1,340		1,328,114
New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%, 8/01/44		680		754,630

				2,949,950
New York — 6.2%
City of New York New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium:
(AMBAC), 5.00%, 1/01/39		1,100		1,102,365
(AGC), 6.50%, 1/01/46		300		325,758
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (a)		1,400		1,455,902
Counties of New York Tobacco Trust VI, Refunding RB, Settlement Pass-Through Turbo, Series C, 4.00%, 6/01/51		1,000		931,840
County of Nassau New York, GO, Series A, 5.00%, 1/15/30		1,250		1,470,700
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45		1,825		1,774,466
Hudson Yards Infrastructure Corp., RB, Series A (AGM), 5.00%, 2/15/47		500		503,550

See Notes to Financial Statements.



18	ANNUAL REPORT	APRIL 30, 2017


Schedule of Investments (continued)		BlackRock Investment Quality Municipal Trust, Inc. (BKN)


Municipal Bonds	Par (000)		Value
New York (continued)
Long Island Power Authority, Refunding RB, Electric System, Series A, 5.75%, 4/01/39	$	2,475	$	2,657,779
Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56		1,365		1,479,592
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		1,250		1,358,587
3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (a)		640		687,744
New York Transportation Development Corp., Refunding RB, American Airlines, Inc., AMT, 5.00%, 8/01/31		1,905		2,001,869
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (a)		600		603,252

				16,353,404
North Dakota — 0.6%
City of Fargo North Dakota, GO, Series D, 4.00%, 5/01/37		795		828,191
County of Burleigh North Dakota, Refunding RB, St. Alexius Medical Center Project, Series A, 5.00%, 7/01/21 (b)		720		823,169

				1,651,360
Ohio — 1.2%
City of Dayton Ohio Airport Revenue, Refunding ARB, James M. Cox Dayton International Airport, AMT, Series A, 4.00%, 12/01/32		3,000		3,066,510
Oklahoma — 2.3%
Norman Oklahoma Regional Hospital Authority, Refunding RB, 4.00%, 9/01/37		2,015		2,025,861
Oklahoma City Public Property Authority, Refunding RB:
5.00%, 10/01/36		800		886,880
5.00%, 10/01/39		280		308,476
Oklahoma Development Finance Authority, RB, Provident Oklahoma Education Resources Inc., Series A, 5.25%, 8/01/57		1,315		1,419,240
Oklahoma Water Resources Board, RB, Clean Water Program, 4.00%, 4/01/40		1,475		1,531,846

				6,172,303
Oregon — 3.4%
County of Lane Oregon School District No. 19 Springfield, GO, CAB, Series B, 0.00%, 6/15/40 (d)		1,500		566,655
Klamath Falls Intercommunity Hospital Authority, Refunding RB, Sky Lakes Medical Center Project:
3.00%, 9/01/35		1,130		1,012,728
3.00%, 9/01/41		950		805,676
Oregon Health & Science University, RB, Series A, 4.00%, 7/01/37		1,075		1,112,249
State of Oregon Facilities Authority, Refunding RB, Legacy Health Project, Series A, 4.00%, 6/01/41		2,610		2,653,770
State of Oregon State Facilities Authority, Refunding RB, University of Portland Project, Series A, 5.00%, 4/01/45		2,485		2,755,492

				8,906,570
Pennsylvania — 4.9%
County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27		2,535		2,462,778


Municipal Bonds	Par (000)		Value
Pennsylvania (continued)
Delaware River Port Authority, RB:
4.50%, 1/01/32	$	3,000	$	3,260,820
Series D (AGM), 5.00%, 1/01/40		3,640		3,952,749
Mckeesport Area School District, GO, CAB, Refunding (NPFGC), 0.00%, 10/01/31 (d)(e)		500		332,890
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44		810		860,860
Pottsville Hospital Authority, Refunding RB, Lehigh Valley Health Network, Series B, 5.00%, 7/01/45		2,000		2,170,740

				13,040,837
Puerto Rico — 1.1%
Children’s Trust Fund, Refunding RB, Tobacco Settlement, Asset-Backed Bonds:
5.50%, 5/15/39		1,470		1,472,205
5.63%, 5/15/43		1,395		1,395,795

				2,868,000
Rhode Island — 4.2%
Rhode Island Commerce Corp., RB, Airport Corporation, Series D:
5.00%, 7/01/41		430		474,539
5.00%, 7/01/46		540		593,725
Rhode Island Health & Educational Building Corp., Refunding RB, Series A (AGM), 3.75%, 5/15/32		1,845		1,866,088
Rhode Island Turnpike & Bridge Authority, Refunding RB, Series A, 5.00%, 10/01/40		2,710		3,019,238
State of Rhode Island, COP, School for the Deaf Project, Series C (AGC), 5.38%, 4/01/28		1,330		1,420,467
Tobacco Settlement Financing Corp., Refunding RB:
Series A, 5.00%, 6/01/40		1,000		1,057,880
Series B, 4.50%, 6/01/45		2,725		2,661,153

				11,093,090
South Dakota — 0.9%
Dakota Valley School District No. 61-8, GO, Refunding, 3.00%, 7/15/39		2,770		2,430,343
Tennessee — 3.8%
Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/40		2,945		3,088,922
County of Chattanooga-Hamilton Tennessee Hospital Authority, Refunding RB, Series A, 5.00%, 10/01/44		875		916,956
County of Knox Tennessee Health Educational & Housing Facility Board, RB, University Health System, Inc., 4.00%, 9/01/40		1,285		1,293,918
County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A:
5.25%, 11/01/27		1,135		1,239,182
5.38%, 11/01/28		1,000		1,096,940
Johnson City Health & Educational Facilities Board, RB, Mountain States Health, Series A, 5.00%, 8/15/42		1,200		1,272,576
Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, RB, Health & Educational Facilities Board, Vanderbilt University Medical Center, Series A, 5.00%, 7/01/40		1,075		1,196,099

				10,104,593

See Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2017	19


Schedule of Investments (continued)		BlackRock Investment Quality Municipal Trust, Inc. (BKN)


Municipal Bonds	Par (000)		Value
Texas — 6.9%
County of Harris Texas-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC), 0.00%, 11/15/38 (d)	$	5,000	$	1,739,250
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co., Project, Series A, 6.30%, 11/01/29		2,200		2,453,484
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/38 (d)		16,780		6,627,093
Leander ISD, CAB, Series D, 0.00%, 8/15/35 (d)		6,000		2,805,180
Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38		1,140		1,286,479
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, 7.00%, 6/30/40		3,000		3,399,690

				18,311,176
Utah — 0.2%
Utah State Charter School Finance Authority, Refunding RB, Mountainville Academy, 4.00%, 4/15/42		600		605,082
Vermont — 1.1%
University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/37		1,860		1,905,626
Vermont Student Assistance Corp., RB, AMT, Series A, 4.25%, 6/15/32		920		943,874

				2,849,500
Virginia — 0.9%
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A, 5.38%, 3/01/36		780		757,614
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37		1,440		1,616,573

				2,374,187
West Virginia — 0.6%
County of Berkeley West Virginia Public Service Sewer District, Refunding RB, Series B (BAM):
5.00%, 6/01/36		615		682,244
3.38%, 6/01/46		920		834,127

				1,516,371
Wisconsin — 1.9%
Public Finance Authority, Refunding RB, National Gypsum Co., AMT, 4.00%, 8/01/35		435		412,719
Wisconsin Health & Educational Facilities Authority, Refunding RB:
Medical College of Wisconsin, Inc., 4.00%, 12/01/46		955		963,280
The Monroe Clinic, Inc., 3.00%, 2/15/35		920		822,085
The Monroe Clinic, Inc., 4.00%, 2/15/38		1,230		1,244,686
WPPI Energy Power Supply Systems, Refunding RB, Series A, 5.00%, 7/01/37		1,330		1,476,034

				4,918,804
Total Municipal Bonds — 135.2%				357,608,492



Municipal Bonds Transferred to Tender Option Bond Trusts (h)
Colorado — 2.1%
Colorado Health Facilities Authority, RB, Catholic Health, Series C-7 (AGM), 5.00%, 5/01/18 (b)		5,250		5,466,667


Municipal Bonds Transferred to Tender Option Bond Trusts (h)	Par (000)		Value
Connecticut — 1.6%
Connecticut State Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45	$	3,902	$	4,350,667
Georgia — 2.6%
City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/43		5,997		6,826,920
Minnesota — 2.1%
State of Minnesota, RB, Series A, 5.00%, 6/01/38		5,000		5,617,948
New Jersey — 1.1%
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (i)		2,861		2,926,483
New York — 8.0%
City of New York New York, GO, Fiscal 2015, Series B, 4.00%, 8/01/32		1,600		1,716,560
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A:
5.75%, 6/15/18 (b)		159		167,370
5.75%, 6/15/40		531		559,758
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:
Fiscal 2013, Series CC, 5.00%, 6/15/47		4,000		4,433,341
Series FF-2, 5.50%, 6/15/40		810		882,179
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (i)		1,750		1,988,502
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		4,500		5,077,554
State of New York Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/18 (b)		3,359		3,518,794
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 3/15/31		2,360		2,687,002

				21,031,060
Ohio — 1.7%
County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 4/28/18 (b)		1,740		1,810,696
Ohio Higher Educational Facility Commission, RB, Cleveland Clinic Health, Series A, 5.25%, 1/01/33		2,600		2,667,132

				4,477,828
Texas — 1.0%
City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43		2,380		2,661,935
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 20.2%				53,359,508
Total Long-Term Investments (Cost — $386,861,963) — 155.4%				410,968,000

See Notes to Financial Statements.



20	ANNUAL REPORT	APRIL 30, 2017


Schedule of Investments (continued)		BlackRock Investment Quality Municipal Trust, Inc. (BKN)



Short-Term Securities	Shares		Value
BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.70% (j)(k)		6,238,321	$	6,239,569
Total Short-Term Securities (Cost — $6,239,569) — 2.3%				6,239,569
Total Investments (Cost — $393,101,532) — 157.7%				417,207,569
Other Assets Less Liabilities — 1.6%				4,106,205
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (11.7)%				(30,863,018	)
VMTP Shares at Liquidation Value — (47.6)%				(125,900,000	)

Net Assets Applicable to Common Shares — 100.0%			$	264,550,756

Notes to Schedule of Investments

(a)

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.

(b)

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.

(c)

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(d)

Zero-coupon bond.

(e)

Security is collateralized by municipal bonds or U.S. Treasury obligations.

(f)

Issuer filed for bankruptcy and/or is in default.

(g)

Non-income producing security.

(h)

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(i)

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between February 15, 2019 to June 15, 2019, is $3,148,884. See Note 4 of the Notes to Financial Statements for details.

(j)

During the year ended April 30, 2017, 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, 2016		Net Activity		Shares Held at April 30, 2017		Value at April 30, 2017		Income		Net Realized Gain¹		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class		1,080,099		5,158,222		6,238,321	$	6,239,569	$	19,430	$	4,543		—
¹Includes net capital gain distributions.

(k)	Current yield as of period end.


Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Contracts Short			Issue	Expiration	Notional Value		Unrealized Depreciation
	(24	)	5-Year U.S. Treasury Note	June 2017		$ 2,841,750	$	(13,502	)
	(99	)	10-Year U.S. Treasury Note	June 2017		$12,446,156		(100,083	)
	(129	)	Long U.S. Treasury Bond	June 2017		$19,732,969		(243,074	)
	(20	)	Ultra U.S. Treasury Bond	June 2017		$ 3,258,750		(41,516	)
	Total						$	(398,175	)

See Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2017	21


Schedule of Investments (concluded)		BlackRock Investment Quality Municipal Trust, Inc. (BKN)

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:


Liabilities — Derivative Financial Instruments		Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Futures Contracts	Net unrealized depreciation¹		—		—		—		—	$	398,175		—	$	398,175
¹ Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

For the year ended April 30, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:


Net Realized Gain (Loss) from:	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Futures contracts		—		—		—		—	$	1,497,686			—	$	1,497,686
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—		—	$	(549,401	)		—	$	(549,401	)


Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — long	$	241,875	¹
Average notional value of contracts — short	$	29,722,090
¹ Actual amounts for the period are shown due to limited outstanding derivative financial instruments as of each quarter.

For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.


Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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 Investments¹		—		$	410,968,000			—	$	410,968,000
Short-Term Securities	$	6,239,569			—			—		6,239,569

Total	$	6,239,569		$	410,968,000			—	$	417,207,569


Derivative Financial Instruments²
Liabilities:
Interest rate contracts	$	(398,175	)		—			—	$	(398,175	)
¹ See above Schedule of Investments for values in each state or political subdivision.
² Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
	Level 1			Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates		—		$	(30,783,015	)		—	$	(30,783,015	)
VMTP Shares at Liquidation Value		—			(125,900,000	)		—		(125,900,000	)

Total		—		$	(156,683,015	)		—	$	(156,683,015	)

During the year ended April 30, 2017, there were no transfers between levels.

See Notes to Financial Statements.



22	ANNUAL REPORT	APRIL 30, 2017

Schedule of Investments April 30, 2017

BlackRock Long-Term Municipal Advantage Trust (BTA)

(Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value
Alabama — 1.9%
County of Jefferson Alabama, RB, Limited Obligation School, Series A, 5.25%, 1/01/19	$	515	$	516,736
County of Jefferson Alabama Sewer, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42		1,655		1,893,303
UAB Medicine Finance Authority, Refunding RB, Series B-2, 4.00%, 9/01/47 (a)		680		681,061

				3,091,100
Arizona — 2.8%
Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.38%, 7/01/50 (b)		925		947,885
Arizona Industrial Development Authority, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.13%, 7/01/37 (b)		360		367,772
City of Phoenix Arizona IDA, RB, Series A:
Facility, Eagle College Preparatory Project, 5.00%, 7/01/33		870		881,014
Legacy Traditional Schools Projects, 5.00%, 7/01/46 (b)		1,255		1,258,803
City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A (b):
5.00%, 7/01/35		125		126,750
5.00%, 7/01/46		135		135,710
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37		725		846,184

				4,564,118
California — 13.3%
California Health Facilities Financing Authority, RB:
St. Joseph Health System, Series A, 5.75%, 7/01/39		385		416,166
Sutter Health, Series B, 6.00%, 8/15/42		1,040		1,182,054
California Health Facilities Financing Authority, Refunding RB:
Catholic Healthcare West, Series A, 6.00%, 7/01/19 (c)		680		752,957
Kaiser Permanente, Sub-Series A-2, 5.00%, 11/01/47 (a)		1,075		1,324,679
California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:
5.25%, 8/15/39		70		76,551
5.25%, 8/15/49		175		190,215
California Statewide Communities Development Authority, RB, Baverly Community Hospital Association, 5.00%, 11/01/48 (a)		345		367,184
City & County of San Francisco Redevelopment Agency, Tax Allocation Bonds, Mission Bay South Redevelopment Project, 0.00%, 8/01/31 (b)(d)		1,265		567,833
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:
Senior, 5.00%, 5/15/40		2,045		2,256,330
5.25%, 5/15/39		270		291,616
City of San Francisco California Public Utilities Commission Water Revenue, RB, Series B, 5.00%, 11/01/19 (c)		3,225		3,538,663
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38		165		199,741
County of Los Angeles California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.,
5.60%, 6/01/36		2,000		2,034,540
5.70%, 6/01/46		1,000		1,001,380


Municipal Bonds	Par (000)		Value
California (continued)
San Marcos Unified School District, GO, CAB, SAN, Election of 2010, Series B, 0.00%, 8/01/38 (d)	$	3,725	$	1,529,932
State of California, GO, Various Purposes, 6.50%, 4/01/33		2,000		2,207,680
State of California Public Works Board, LRB, Various Capital Projects:
Series I, 5.00%, 11/01/38		355		398,033
Sub-Series I-1, 6.38%, 11/01/19 (c)		400		452,484
Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1:
5.00%, 6/01/37		2,140		2,139,936
5.13%, 6/01/46		1,005		1,004,910

				21,932,884
Colorado — 6.1%
Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47		275		274,986
Colorado Health Facilities Authority, Refunding RB, Series A:
Sunny Vista Living Center Project, 6.13%, 12/01/45 (b)		160		166,542
Sunny Vista Living Center Project, 6.25%, 12/01/50 (b)		520		544,211
Sisters of Charity of Leavenworth Health System, 5.00%, 1/01/40		3,940		4,206,935
Denver Convention Center Hotel Authority, Refunding RB, 5.00%, 12/01/40		2,420		2,651,522
North Range Metropolitan District No. 2, GO, Limited Tax, 5.50%, 12/15/37		1,200		1,199,940
Table Mountain Metropolitan District, GO, Series A, 5.25%, 12/01/45		1,000		1,011,180

				10,055,316
Connecticut — 0.5%
Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 2/01/30 (b)		860		911,196
Delaware — 1.9%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40		750		806,753
State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45		2,240		2,325,254

				3,132,007
District of Columbia — 1.4%
District of Columbia, Refunding RB, Kipp Charter School, Series A, 6.00%, 7/01/43		260		299,070
District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 6/01/41		750		830,498
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:
5.00%, 10/01/39		170		182,544
5.25%, 10/01/44		1,000		1,077,780

				2,389,892
Florida — 3.7%
County of Miami-Dade Florida Water & Sewer System Revenue, RB, Water & Sewer System, 5.00%, 10/01/34		1,950		2,157,363
Lakewood Ranch Stewardship District, Special Assessment Bonds, Village of Lakewood Ranch Sector Projects:
4.00%, 5/01/21		100		100,885
4.25%, 5/01/26		100		99,556
5.13%, 5/01/46		415		415,444

See Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2017	23


Schedule of Investments (continued)		BlackRock Long-Term Municipal Advantage Trust (BTA)


Municipal Bonds	Par (000)		Value
Florida (continued)
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21 (c)	$	1,080	$	1,344,093
Tolomato Community Development District, Refunding, Special Assessment Bonds:
Convertible CAB, Series A2, 6.61%, 5/01/39		95		88,206
Convertible CAB, Series A3, 0.00%, 5/01/40 (e)		225		134,048
Convertible CAB, Series A4, 0.00%, 5/01/40 (e)		120		52,862
Series 2, 0.00%, 5/01/40 (e)		310		160,437
Series A1, 6.65%, 5/01/40		340		340,020
Tolomato Community Development District:
Series 1, 0.00%, 5/01/40 (e)		505		310,035
Series 1, 6.65%, 5/01/40 (f)(g)		15		15,075
Series 3, 6.61%, 5/01/40 (f)(g)		340		3
Series 3, 6.65%, 5/01/40 (f)(g)		275		3
Village Community Development District No.10, Special Assessment Bonds, 5.13%, 5/01/43		810		864,238

				6,082,268
Georgia — 0.2%
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54		240		279,238
Guam — 0.8%
Guam Government Waterworks Authority, RB, Water & Wastewater System, 5.50%, 7/01/43		1,065		1,167,443
Territory of Guam, GO, Series A, 6.00%, 11/15/19		125		132,221

				1,299,664
Illinois — 9.9%
City of Chicago Illinois, GO, Refunding, Series A, 6.00%, 1/01/38
6.00%, 1/01/38		595		622,031
Project, 5.25%, 1/01/32		1,090		1,075,656
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series A, 5.75%, 1/01/39		2,500		2,817,250
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40		360		383,980
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42		1,000		1,060,150
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38		350		372,012
Illinois Finance Authority, RB, Advocate Health Care Network:
5.38%, 4/01/19 (c)		870		939,774
5.38%, 4/01/44		975		1,027,903
Illinois Finance Authority, Refunding RB:
Central Dupage Health, Series B, 5.50%, 11/01/39		550		602,673
Presence Health Network, Series C, 5.00%, 2/15/41		1,500		1,572,120
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38		815		899,442
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:
Series B-2, 5.25%, 6/15/50		1,000		1,011,430
Series B (AGM), 5.00%, 6/15/50		1,790		1,865,108
Series B-2, 5.00%, 6/15/50		625		625,319
State of Illinois, GO, 5.00%, 2/01/39		745		743,964
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/19 (c)		215		233,864
University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 4/01/44		475		512,706

				16,365,382


Municipal Bonds	Par (000)		Value
Indiana — 6.2%
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:
6.75%, 1/01/34	$	365	$	431,828
7.00%, 1/01/44		885		1,057,141
City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village Project, 6.25%, 1/01/29 (b)		1,155		1,103,429
County of Allen Indiana, RB, StoryPoint Fort Wayne Project, Series A-1 (b):
6.63%, 1/15/34		135		137,830
6.75%, 1/15/43		200		204,182
6.88%, 1/15/52		410		418,553
Indiana Finance Authority, RB, Series A:
CWA Authority Project, 1st Lien, 5.25%, 10/01/38		1,285		1,451,253
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44		160		169,883
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48		520		552,120
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 1/01/51		2,190		2,354,469
Sisters of St. Francis Health Services, 5.25%, 11/01/39		290		311,765
Indiana Finance Authority, Refunding RB, Parkview Health System, Series A, 5.75%, 5/01/31		600		646,044
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/19 (c)		350		378,868
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 1/15/40		445		495,597
Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 1/15/51 (b)		560		557,082

				10,270,044
Iowa — 1.3%
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:
5.50%, 12/01/22		830		844,002
5.25%, 12/01/25		660		667,511
Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22		560		593,006

				2,104,519
Kentucky — 0.6%
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45		440		467,192
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43 (e)		565		468,052

				935,244
Louisiana — 4.0%
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project:
6.75%, 11/01/32		2,000		2,043,840
Series A-1, 6.50%, 11/01/35		1,135		1,292,935
Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A, 5.13%, 6/01/37		605		606,494
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:
5.50%, 5/15/30		350		374,336
5.25%, 5/15/31		300		322,224
5.25%, 5/15/32		380		412,714
5.25%, 5/15/33		415		448,727
5.25%, 5/15/35		945		1,027,811

				6,529,081

See Notes to Financial Statements.



24	ANNUAL REPORT	APRIL 30, 2017


Schedule of Investments (continued)		BlackRock Long-Term Municipal Advantage Trust (BTA)


Municipal Bonds	Par (000)		Value
Maine — 0.6%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 7/01/41	$	970	$	1,050,849
Maryland — 1.0%
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35		970		1,041,489
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25		645		645,310

				1,686,799
Massachusetts — 7.1%
Massachusetts Development Finance Agency, RB:
Emerson College Issue, Series A, 5.00%, 1/01/47		860		928,387
Boston Medical Center, Series D, 5.00%, 7/01/44		3,000		3,172,950
North Hill Communities Issue, Series A, 6.50%, 11/15/43 (b)		1,000		1,050,240
Seven Hills Foundation and Affiliates, Series A, 5.00%, 9/01/45		2,000		2,057,020
UMass Boston Student Housing Project, 5.00%, 10/01/48		945		1,004,828
Massachusetts Development Finance Agency, Refunding RB:
Emmanuel College Issue, Series A, 5.00%, 10/01/35		500		546,315
Suffolk University, 4.00%, 7/01/39		160		157,907
Massachusetts Housing Finance Agency, Refunding RB, AMT, Series A:
4.50%, 12/01/47		2,135		2,168,626
4.45%, 12/01/42		645		653,198

				11,739,471
Michigan — 1.6%
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39		1,970		2,125,019
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44		410		435,469

				2,560,488
Minnesota — 1.0%
City of Brooklyn Park Minnesota, RB, Athlos Leadership Academy Project, Series A, 5.75%, 7/01/46		180		178,749
City of Ham Lake Minnesota, RB, Series A:
5.00%, 7/01/36		220		215,206
5.00%, 7/01/47		680		645,483
Housing & Redevelopment Authority of The City of State Paul Minnesota, Refunding RB, Hmong College Academy Project, Series A, 5.50%, 9/01/36		690		694,955

				1,734,393
Missouri — 0.1%
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44		85		93,719
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43		115		124,451

				218,170
Nebraska — 0.2%
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37		285		310,254


Municipal Bonds	Par (000)		Value
New Jersey — 6.9%
Casino Reinvestment Development Authority, Refunding RB:
5.00%, 11/01/22	$	2,035	$	2,205,248
5.25%, 11/01/39		475		478,805
5.25%, 11/01/44		1,160		1,163,561
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45 (b)		505		505,399
New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 5.13%, 9/15/23		1,410		1,502,355
New Jersey EDA, Refunding RB, Series BBB, 5.50%, 6/15/31		1,225		1,307,969
New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31		785		865,031
New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Joseph’s Healthcare System Obligated Group, 5.00%, 7/01/41		750		804,105
New Jersey Transportation Trust Fund Authority, RB:
Transportation Program, Series AA, 5.00%, 6/15/44		830		830,440
Transportation System, Series B, 5.25%, 6/15/36		845		864,443
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 5.00%, 6/01/41		795		777,105

				11,304,461
New York — 30.3%
City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series HH, 5.00%, 6/15/31		2,830		3,191,193
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A:
6.25%, 6/01/41 (b)		900		935,937
5.00%, 6/01/42		1,505		1,422,330
5.00%, 6/01/45		555		527,910
County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 8/01/46		1,500		1,244,205
County of Nassau New York Tobacco Settlement Corp., Refunding RB, Asset-Backed, Series A-3, 5.13%, 6/01/46		550		529,546
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45		910		884,802
Hudson Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47		6,510		7,397,899
Metropolitan Transportation Authority, RB, Series B:
5.25%, 11/15/38		1,125		1,292,400
5.25%, 11/15/39		400		457,328
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43		6,140		6,928,253
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		420		456,485
3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (b)		2,355		2,499,197
3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (b)		160		171,936
3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (b)		395		426,600
4 World Trade Center Project, 5.75%, 11/15/51		2,220		2,527,248
New York Transportation Development Corp., RB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 1/01/50		1,000		1,083,660

See Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2017	25


Schedule of Investments (continued)		BlackRock Long-Term Municipal Advantage Trust (BTA)


Municipal Bonds	Par (000)		Value
New York (continued)
New York Transportation Development Corp., Refunding RB, American Airlines, Inc., AMT:
5.00%, 8/01/20	$	250	$	269,220
5.00%, 8/01/26		1,275		1,339,120
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/42		730		819,629
State of New York Dormitory Authority, RB:
Series A, 5.25%, 7/01/18 (c)		1,000		1,050,230
Series B, 5.75%, 3/15/36		11,250		12,216,488
State of New York Dormitory Authority, Refunding RB, Orange Regional Medical Center, 5.00%, 12/01/33 (b)		455		496,410
Westchester Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C, 4.00%, 6/01/42		1,760		1,765,755

				49,933,781
North Carolina — 0.5%
North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/19 (c)		480		519,134
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41		260		285,493

				804,627
Ohio — 4.7%
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Series A-2:
Senior Turbo Term, 5.88%, 6/01/47		1,500