34238

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
 MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number:                   811-09401
                                                                       _____________________________________________________
   
   
BlackRock Strategic Municipal Trust
(Exact name of registrant as specified in charter)
 
   
         100 Bellevue Parkway, Wilmington, DE 19809
         (Address of principal executive offices) (Zip code)

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

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code:      888-825-2257
____________________________________________
   
Date of fiscal year end:      December 31, 2004
____________________________________________
   
Date of reporting period:      March 31, 2005
____________________________________________

 




Item 1. Schedule of Investments

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

 

PORTFOLIO OF INVESTMENTS (unaudited)
MARCH 31, 2005

BlackRock Strategic Municipal Trust (BSD)

  Principal        
  Amount   Option Call    
Rating1 (000) Description Provisions2 Value  
    LONG-TERM INVESTMENTS—144.6%    
      Alabama—14.2%    
Baa2 $ 3,000   Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.70%, 11/01/29 11/09 @ 101 $ 3,237,600  
AAA 4,635 3 Jefferson Cnty. Swr., Ser. D, 5.75%, 2/01/07, FGIC N/A 4,924,363  
AAA 7,000   Pub. Sch. & Coll. Auth., Cap. Impvt., Ser. C, 5.75%, 7/01/18 07/09 @ 101.5 7,717,360  
          15,879,323  
      Alaska—1.0%    
AAA 1,130   Hsg. Fin. Corp., Ser. A, 5.875%, 12/01/24, MBIA 12/05 @ 102 1,158,736  
      California—5.4%    
      Golden St. Tobacco Sec. Corp., Ser. B,    
A- 2,600       5.50%, 6/01/43 06/13 @ 100 2,732,548  
A- 3,100       5.625%, 6/01/38 06/13 @ 100 3,316,504  
          6,049,052  
      Colorado—2.1%    
AAA 10,000   Northwest Pkwy. Pub. Hwy. Auth., Ser. B, Zero Coupon, 6/15/30, FSA 06/11 @ 31.387 2,292,900  
      Connecticut—8.7%    
      Mashantucket Western Pequot Tribe, Spec. Rev.,    
BBB- 1,500       Ser. A, 5.50%, 9/01/28 09/09 @ 101 1,536,480  
Baa3 8,000 4     Ser. B, 5.75%, 9/01/27 09/07 @ 102 8,245,440  
          9,781,920  
      Florida—10.7%    
NR 3,300   Hillsborough Cnty. Ind. Dev. Auth., Nat. Gypsum Proj., Ser. A, 7.125%, 4/01/30 10/10 @ 101 3,599,343  
      Hsg. Fin. Corp., Sunset Place Proj., Ser. K-1,    
BBB- 2,150       6.00%, 10/01/19 10/09 @ 102 2,100,830  
BBB- 2,000       6.10%, 10/01/29 10/09 @ 102 1,943,100  
BB 2,045   Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21 11/14 @ 100 2,230,195  
NR 1,070   Reunion West Cmnty. Dev. Dist., Spl. Assmt., 6.25%, 5/01/36 05/12 @ 101 1,109,825  
NR 1,000   Town Center Palm Coast Cmnty., 6.00%, 5/01/36 05/13 @ 101 1,007,470  
          11,990,763  
      Illinois—6.2%    
NR 850   Centerpoint Intermodal Ctr. Prog. Trust, Ser. A, 8.00%, 6/15/23 No Opt. Call 851,768  
      Chicago Brd. of Ed., Sch. Reform, AMBAC,    
AAA 4,480 3     5.75%, 12/01/07 N/A 4,888,083  
AAA 520       5.75%, 12/01/27 12/07 @ 102 563,592  
      Fin. Auth. Student Hsg., MJH Ed. Asst. Living Proj.,    
Baa2 375       Ser. A, 5.125%, 6/01/35 06/14 @ 100 363,502  
Baa3 300       Ser. B, 5.375%, 6/01/35 06/14 @ 100 291,051  
          6,957,996  
      Kentucky—10.7%    
AAA 32,345   Econ. Dev. Fin. Sys., Norton Hlth. Care, Inc. Proj., Ser. B, Zero Coupon, 10/01/24, MBIA No Opt. Call 11,961,504  
      Michigan—9.3%    
AAA 2,000   Hosp. Fin. Auth., Mercy Hlth. Svcs. Proj., 5.75%, 8/15/19, MBIA 08/09 @ 101 2,186,600  
BB+ 8,000   Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 07/07 @ 101 8,260,800  
          10,447,400  
      Missouri—1.9%    
A 2,000   Hlth. & Edl. Facs. Auth., Hlth. Facs. Rev., St. Anthony’s Med. Ctr. Proj., 6.125%, 12/01/19 12/10 @ 101 2,127,680  
      Multi-State—5.9%    
Baa1 2,000 4 Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/50 11/10 @ 100 2,235,400  
A3 4,000 4 MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 06/09 @ 100 4,314,360  
          6,549,760  

1

BlackRock Strategic Municipal Trust (BSD) (continued)

  Principal        
  Amount   Option Call    
Rating1 (000) Description Provisions2 Value  
    New Jersey—11.0%    
B $ 6,000   Econ. Dev. Auth., Continental Airlines, Inc. Proj., 6.25%, 9/15/19 09/09 @ 101 $ 4,911,000  
NR 645   Middlesex Cnty. Imprvt. Auth., Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37 01/15 @ 100 620,084  
AAA 6,000 3 Transp. Trust Fund Auth., Transp. Sys., Ser. A, 6.00%, 6/15/10 N/A 6,773,280  
          12,304,364  
      New York—8.4%    
Aa1 2,500   Mtg. Agcy., Homeowner Mtg. Proj., Ser. 85, 5.70%, 10/01/17 09/09 @ 100 2,605,375  
AAA 6,000 3 New York City Transl. Fin. Auth., Ser. B, 6.00%, 5/15/10 N/A 6,828,000  
          9,433,375  
      Oklahoma—1.1%    
B- 1,225   Tulsa Mun. Arpt. Trust, Ser. A, 7.75%, 6/01/35 No Opt. Call 1,224,216  
      Pennsylvania—18.9%    
      Econ. Dev. Fin. Auth., Ser. A,    
A3 700       Amtrak Proj., 6.125%, 11/01/21 05/11 @ 101 728,224  
A3 1,000       Amtrak Proj., 6.25%, 11/01/31 05/11 @ 101 1,039,250  
A3 1,000       Amtrak Proj., 6.50%, 11/01/16 05/11 @ 101 1,074,220  
BB- 3,555       Exempt Facs. Rev., Reliant Energy Conv. Proj., 6.75%, 12/01/36 12/09 @ 103 3,791,159  
      Lehigh Cnty. Gen. Purp. Auth., Kidspeace Oblig. Grp. Proj.,    
B3 2,250       6.00%, 11/01/23 11/08 @ 102 2,087,302  
B3 2,335       6.20%, 11/01/14 11/09 @ 102 2,274,804  
AAA 8,500 3 Philadelphia Sch. Dist., GO, Ser. C, 5.75%, 3/01/10, MBIA N/A 9,423,610  
AAA 720   Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC No Opt. Call 762,559  
          21,181,128  
      South Carolina—2.5%    
BBB+ 2,500   Jobs Econ. Dev. Auth., Hosp. Facs. Rev., Palmetto Hlth. Alliance Proj., Ser. C, 7.00%, 8/01/30 08/13 @ 100 2,818,625  
      Tennessee—1.9%    
AAA 2,000   Memphis Shelby Cnty. Arpt. Auth., Ser. D, 6.00%, 3/01/24, AMBAC 03/10 @ 101 2,176,180  
      Texas—12.6%    
AAA 4,750   Harris Cnty. Houston Sports Auth., Ser. A, Zero Coupon, 11/15/38, MBIA 11/30 @ 61.166 733,020  
AAA 1,500   Lower Colorado River Auth., Ser. A, 5.50%, 5/15/21, AMBAC 05/09 @ 101 1,618,515  
AAA 15,000   Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/31, AMBAC 08/12 @ 32.807 3,328,650  
AAA 7,030 3,5 Travis Cnty. Hlth. Facs. Dev. Corp., Ascension Hlth. Proj., Ser. A, 5.875%, 11/15/09, AMBAC N/A 7,842,598  
AA+ 500   Wtr. Fin. Asst., GO, 5.75%, 8/01/22 8/10 @ 100 549,075  
          14,071,858  
      Utah—3.9%    
AAA 4,000   Intermountain Pwr. Agcy., Sply., Ser. B, 5.75%, 7/01/19, MBIA 07/07 @ 102 4,305,640  
      Virginia—1.7%    
AAA 1,750   Res. Auth., Clean Wtr. Rev., 5.625%, 10/01/22 10/10 @ 100 1,910,510  
      Washington—6.5%    
      Washington, GO,    
Aa1 4,750       Ser. A, 5.625%, 7/01/24 07/09 @ 100 5,111,190  
Aa1 2,000       Ser. B, 6.00%, 1/01/25 01/10 @ 100 2,204,540  
          7,315,730  
      Total Long-Term Investments (cost $148,690,411)   161,938,660  

2

BlackRock Strategic Municipal Trust (BSD) (continued)

  Principal        
  Amount        
Rating1 (000) Description   Value  
    SHORT-TERM INVESTMENTS—14.3%    
      Ohio—4.7%    
VMIG1 $ 5,200 6 Hamilton Cnty. Hosp. Facs., 2.29%, 4/07/05, FRWD   $ 5,200,000  
  Shares        
  (000)        
      Money Market Funds—9.6%    
  5,600   AIM Tax Free Investment Co. Cash Reserve Portfolio   5,600,000  
  5,150   SSgA Tax Free Money Mkt. Fund   5,150,000  
          10,750,000  
      Total Short-Term Investments (cost $15,950,000)   15,950,000  
      Total Investments—158.9% (cost $164,640,4117)   $ 177,888,660  
      Liabilities in excess of other assets—(3.5)%   (3,910,228)  
      Preferred shares at redemption value, including dividends payable—(55.4)%   (62,003,924)  
      Net Assets Applicable to Common Shareholders—100%   $ 111,974,508  

1   Using the higher of Standard & Poor’s, Moody’s Investors Services or Fitch’s Ratings.  
2   Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.  
3   This bond is prefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.  
4   Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of March 31, 2005, the Trust held 13.2% of it nets assets, with a current market value of $14,795,200 in securities restricted as to resale.  
5   Entire or partial principal amount pledged as collateral for financial futures contracts.  
6   For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted.  
7   Cost for Federal income tax purposes is $164,551,450. The net unrealized appreciation on a tax basis is $13,337,210 consisting of $14,484,618 gross unrealized appreciation and $1,147,408 gross unrealized depreciation. 
KEY TO ABBREVIATIONS
AMBAC — American Municipal Bond Assurance Corp.   FSA — Financial Security Assurance  
FGIC — Financial Guaranty Insurance Co.   GO — General Obligation  
FRWD — Floating Rate Weekly Demand   MBIA — Municipal Bond Insurance Assoc.  
        PCR — Pollution Control Revenue

3

Item 2. Controls and Procedures

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

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

Item 3. Exhibits.

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

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)     BlackRock Strategic Municipal Trust
______________________________________________________________

By:     /s/ Henry Gabbay
_____________________________________________________________________
Name: Henry Gabbay
Title: Treasurer
Date: May 27, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:     /s/ Robert S. Kapito
_____________________________________________________________________
Name: Robert S. Kapito
Title: Principal Executive Officer
Date: May 27, 2005

By:      /s/ Henry Gabbay
_____________________________________________________________________
Name: Henry Gabbay
Title: Principal Financial Officer
Date: May 27, 2005