BLACKROCK MUNICIPAL INCOME TRUST

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: 811-10339

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 52nd Street, New York, NY 10055

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

Date of fiscal year end: 04/30/2016

Date of reporting period: 07/31/2015


Item 1 – Schedule of Investments


Schedule of Investments July 31, 2015 (Unaudited)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 3.1%

    

County of Jefferson Alabama, RB, Limited Obligation School, Series A, 5.25%, 1/01/19

   $ 2,910      $ 2,931,825   

County of Jefferson Alabama Sewer, Refunding RB:

    

Senior Lien, Series A (AGM), 5.00%, 10/01/44

     1,555        1,668,981   

Senior Lien, Series A (AGM), 5.25%, 10/01/48

     2,275        2,482,571   

Sub-Lien, Series D, 6.00%, 10/01/42

     5,740        6,411,982   

Sub-Lien, Series D, 7.00%, 10/01/51

     1,765        2,119,553   

State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40

     4,080        4,735,738   
    

 

 

 
               20,350,650   

Arizona — 2.9%

    

Salt Verde Financial Corp., RB, Senior:

    

5.00%, 12/01/32

     10,030        11,062,689   

5.00%, 12/01/37

     7,460        8,181,755   
    

 

 

 
               19,244,444   

California — 13.7%

    

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/19 (a)

     4,445        5,187,671   

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42

     6,230        7,385,914   

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33

     2,465        2,765,755   

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

    

5.25%, 8/15/39

     290        315,430   

5.25%, 8/15/49

     715        773,630   

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (b)

     2,970        3,107,600   
Municipal Bonds   

Par  

(000)

    Value  

California (concluded)

    

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:

    

Senior, 5.00%, 5/15/40

   $ 11,690      $ 13,194,970   

5.25%, 5/15/39

     1,560        1,754,048   

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40

     690        824,819   

County of Stanislaus California Tobacco Securitization Agency, RB, CAB, Sub-Series C, 0.00%, 6/01/55 (c)

     17,855        201,940   

Foothill-De Anza Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/40

     7,000        7,791,980   

Murrieta Community Facilities District Special Tax California, Special Tax Bonds, District No. 2, The Oaks Improvement Area A, 6.00%, 9/01/34

     4,890        4,898,313   

Riverside County Transportation Commission, RB, CAB, Senior Lien, Series B (c):

    

0.00%, 6/01/41

     5,000        1,369,100   

0.00%, 6/01/42

     6,000        1,562,640   

0.00%, 6/01/43

     5,000        1,238,600   

San Marcos Unified School District, GO, CAB, Election of 2010, Series B (c):

    

0.00%, 8/01/34

     3,500        1,556,695   

0.00%, 8/01/36

     4,000        1,623,600   

State of California, GO, Various Purposes:

    

6.00%, 3/01/33

     4,970        5,998,641   

6.50%, 4/01/33

     20,410        24,213,812   

State of California Public Works Board, LRB, Various Capital Projects:

    

Series I, 5.00%, 11/01/38

     1,495        1,684,073   

Sub-Series I-1, 6.38%, 11/01/34

     2,315        2,785,501   
    

 

 

 
               90,234,732   

Colorado — 1.3%

    

Colorado Health Facilities Authority, Refunding RB:

    

Catholic Health Initiatives, Series A, 5.50%, 7/01/34

     4,205        4,759,303   

Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42

     1,160        1,218,081   

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015    1


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

    Value  

Colorado (concluded)

    

Park Creek Metropolitan District, Refunding RB, Senior Limited Property Tax, 5.50%, 12/01/37

   $ 2,530      $ 2,559,500   
    

 

 

 
               8,536,884   

Connecticut — 0.5%

    

Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, Series A, 5.00%, 11/15/40

     2,710        2,973,385   

Delaware — 2.0%

    

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

     2,225        2,532,962   

Delaware State EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45

     10,080        10,902,831   
    

 

 

 
               13,435,793   

District of Columbia — 4.4%

    

District of Columbia, Refunding RB, Kipp Charter School, Series A, 6.00%, 7/01/43

     1,480        1,702,932   

District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 5/15/40

     23,035        23,031,775   

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:

    

5.00%, 10/01/39

     990        1,080,892   

5.25%, 10/01/44

     2,465        2,748,623   
    

 

 

 
               28,564,222   

Florida — 2.8%

    

City of Miami Beach Florida Stormwater Revenue, RB, 4.00%, 9/01/45 (d)

     840        829,828   

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 5/01/45

     1,665        1,799,632   

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A-1, 5.38%, 10/01/41

     2,280        2,588,644   
Municipal Bonds   

Par  

(000)

    Value  

Florida (concluded)

    

County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center:

    

5.00%, 6/01/32

   $ 600      $ 634,428   

5.00%, 6/01/36

     125        131,772   

5.13%, 6/01/42

     1,925        2,037,593   

Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21 (a)

     5,885        7,729,771   

Stevens Plantation Community Development District, Special Assessment, Series A, 7.10%, 5/01/35 (e)(f)

     3,590        2,678,535   
    

 

 

 
               18,430,203   

Georgia — 2.1%

    

City of Atlanta Georgia Water & Wastewater, Refunding RB, 5.00%, 11/01/40

     4,370        4,926,563   

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

     1,010        1,147,158   

DeKalb Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39

     1,650        1,846,944   

Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, 3rd Indenture, Series A, 5.00%, 7/01/39

     5,000        5,589,350   
    

 

 

 
               13,510,015   

Hawaii — 0.5%

    

State of Hawaii Harbor System, RB, Series A, 5.25%, 7/01/30

     2,660        3,008,912   

Illinois — 18.2%

    

City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series C, 6.50%, 1/01/41

     11,385        13,678,394   

City of Chicago Illinois, GO, Project, 5.00%, 1/01/34

     4,885        4,534,745   

City of Chicago Illinois, GO, Refunding, Series A:

    

Project, 5.25%, 1/01/32

     6,155        5,944,561   

5.00%, 1/01/34

     2,500        2,320,750   

City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38

     1,605        1,676,840   

 

                
2    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Illinois (continued)

    

City of Chicago Illinois Board of Education, GO, Series A, 5.25%, 12/01/41

   $ 5,930      $ 5,182,108   

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

     2,055        2,162,107   

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42

     7,625        7,877,921   

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

     1,525        1,740,178   

Illinois Finance Authority, RB, Advocate Health Care, Series C, 5.38%, 4/01/44

     10,630        11,627,625   

Illinois Finance Authority, Refunding RB:

    

Ascension Health, Series A, 5.00%, 11/15/37

     1,895        2,084,424   

Central Dupage Health, Series B, 5.50%, 11/01/39

     3,160        3,605,592   

Friendship Village Schaumburg, Series A, 5.63%, 2/15/37

     470        470,024   

Illinois State Toll Highway Authority, RB:

    

Senior, Series C, 5.00%, 1/01/36

     5,095        5,643,120   

Senior, Series C, 5.00%, 1/01/37

     5,455        6,018,938   

Series A, 5.00%, 1/01/38

     4,550        4,998,539   

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:

    

Series B (AGM), 5.00%, 6/15/50

     14,710        15,242,649   

Series B-2, 5.00%, 6/15/50

     3,905        3,992,784   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     885        1,022,237   

6.00%, 6/01/28

     2,245        2,642,163   

State of Illinois, GO:

    

5.00%, 2/01/39

     2,990        3,004,382   

Series A, 5.00%, 4/01/38

     9,030        9,080,839   

State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34

     1,240        1,378,062   

University of Illinois, RB, Auxiliary Facilities System, Series A:

    

5.00%, 4/01/39

     1,565        1,706,116   
Municipal Bonds   

Par  

(000)

    Value  

Illinois (concluded)

    

University of Illinois, RB, Auxiliary Facilities System, Series A (concluded):

    

5.00%, 4/01/44

   $ 1,910      $ 2,068,988   
    

 

 

 
               119,704,086   

Indiana — 4.4%

    

Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A, 4.00%, 2/01/38

     2,680        2,767,609   

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

    

6.75%, 1/01/34

     1,525        1,836,649   

7.00%, 1/01/44

     3,680        4,456,370   

City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village, 6.25%, 1/01/24

     1,570        1,392,449   

Indiana Finance Authority, RB, Series A:

    

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

     6,305        7,279,122   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

     880        916,731   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48

     2,905        3,009,929   

Sisters of St. Francis Health Services, 5.25%, 11/01/39

     1,655        1,832,433   

Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39

     2,150        2,455,579   

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 1/15/40

     2,490        2,746,943   
    

 

 

 
               28,693,814   

Iowa — 2.2%

    

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:

    

5.00%, 12/01/19

     1,880        1,986,182   

5.50%, 12/01/22

     4,595        4,861,786   

5.25%, 12/01/25

     2,125        2,308,876   

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

     2,690        2,863,424   

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015    3


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Iowa (concluded)

                

Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 6/01/46

   $ 2,920      $ 2,546,591   
    

 

 

 
               14,566,859   

Kentucky — 0.6%

    

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

     1,915        2,092,942   

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43 (g)

     2,325        1,618,386   
    

 

 

 
               3,711,328   

Louisiana — 2.7%

    

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

     6,535        7,777,892   

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

    

5.50%, 5/15/30

     1,980        2,220,214   

5.25%, 5/15/31

     1,690        1,871,100   

5.25%, 5/15/32

     2,160        2,427,343   

5.25%, 5/15/33

     2,345        2,581,118   

5.25%, 5/15/35

     985        1,088,218   
    

 

 

 
               17,965,885   

Maryland — 1.1%

    

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35

     855        933,934   

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25

     1,440        1,519,776   

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/41

     4,295        4,763,499   
Municipal Bonds   

Par  

(000)

    Value  

Maryland (concluded)

                

Montgomery County Housing Opportunities Commission, RB, Series D, AMT, 5.50%, 1/01/38

   $ 150      $ 153,376   
    

 

 

 
               7,370,585   

Massachusetts — 0.9%

    

Massachusetts Development Finance Agency, Refunding RB, Covanta Energy Project, Series C, AMT, 5.25%, 11/01/42 (b)

     2,775        2,834,357   

Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare System, Series J1, 5.00%, 7/01/39

     2,535        2,826,703   
    

 

 

 
               5,661,060   

Michigan — 3.3%

    

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39

     8,665        9,243,389   

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41

     2,870        3,367,486   

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36

     2,700        3,000,159   

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

     1,710        1,771,577   

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, Series A, 5.25%, 11/15/46

     4,230        4,369,674   
    

 

 

 
               21,752,285   

Mississippi — 2.1%

    

City of Gulfport Mississippi, RB, Memorial Hospital at Gulfport Project, Series A, 5.75%, 7/01/31

     14,025        14,066,654   

Missouri — 0.5%

    

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

     495        545,307   

 

                
4    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Missouri (concluded)

                

State of Missouri Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Services, 5.50%, 2/01/42

   $ 2,035      $ 2,181,215   

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43

     480        520,881   
    

 

 

 
               3,247,403   

Nebraska — 1.7%

    

Central Plains Energy Project Nebraska, RB, Gas Project No. 3:

    

5.25%, 9/01/37

     1,610        1,752,694   

5.00%, 9/01/42

     2,815        3,006,758   

County of Douglas Nebraska Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 1/01/40

     3,280        3,576,840   

County of Hall Nebraska School District No. 2, GO, Grand Island Public Schools, 5.00%, 12/15/39

     1,760        1,985,826   

County of Lancaster Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, Health Facilities, 5.63%, 1/01/40

     600        654,300   
    

 

 

 
               10,976,418   

Nevada — 0.7%

    

County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29

     4,550        4,680,904   

New Jersey — 8.2%

    

Casino Reinvestment Development Authority, Refunding RB:

    

5.25%, 11/01/39

     2,000        2,087,700   

5.25%, 11/01/44

     1,565        1,621,716   

County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (e)(f)

     3,680        179,216   

New Jersey EDA, RB, AMT:

    

Continental Airlines, Inc. Project, 4.88%, 9/15/19

     1,915        2,003,722   

Continental Airlines, Inc. Project, 5.25%, 9/15/29

     3,830        4,158,422   
Municipal Bonds   

Par  

(000)

    Value  

New Jersey (concluded)

                

New Jersey EDA, RB, AMT (concluded):

    

Continental Airlines, Inc. Project, Series B, 5.63%, 11/15/30

   $ 2,035      $ 2,266,685   

The Goethals Bridge Replacement Project, Private Activity Bond, 5.38%, 1/01/43

     2,285        2,447,509   

New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28

     8,000        9,841,520   

New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/43

     8,150        8,973,883   

New Jersey Transportation Trust Fund Authority, RB:

    

Transportation Program, Series AA, 5.00%, 6/15/44

     6,815        6,956,616   

Transportation System, Series A, 5.50%, 6/15/41

     8,000        8,431,760   

Transportation System, Series B, 5.25%, 6/15/36

     4,810        5,044,680   
    

 

 

 
               54,013,429   

New York — 13.4%

    

City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport, AMT (h):

    

8.00%, 8/01/28

     5,000        5,353,300   

7.75%, 8/01/31

     22,140        23,591,498   

City of New York New York Transitional Finance Authority, RB:

    

Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42

     4,805        5,356,710   

Future Tax Secured Revenue, Fiscal 2015, Series B, Sub-Series B-1, 5.00%, 8/01/39

     2,500        2,818,225   

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (b)

     3,600        3,686,400   

County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44

     1,805        1,966,566   

Metropolitan Transportation Authority, RB, Series B:

    

5.25%, 11/15/38

     4,640        5,309,970   

5.25%, 11/15/39

     1,650        1,882,831   

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015    5


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

New York (concluded)

                

New York Counties Tobacco Trust II, RB, 5.75%, 6/01/43

   $ 5,000      $ 5,037,100   

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

     2,400        2,706,072   

3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (b)

     9,610        9,666,795   

3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (b)

     660        683,107   

3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (b)

     1,655        1,738,180   

New York State Dormitory Authority, Refunding RB, Series D, 5.00%, 2/15/37

     6,655        7,389,779   

Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (b)

     1,575        1,610,626   

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:

    

6.00%, 12/01/36

     2,525        2,938,923   

6.00%, 12/01/42

     1,960        2,281,303   

Westchester Tobacco Asset Securitization, Refunding RB, 5.13%, 6/01/45

     4,600        4,339,824   
    

 

 

 
               88,357,209   

North Carolina — 4.2%

    

County of Gaston North Carolina Industrial Facilities & Pollution Control Financing Authority, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35

     12,130        12,150,136   

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/38

     10,000        11,146,400   

North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/42

     2,750        3,063,775   
Municipal Bonds   

Par  

(000)

    Value  

North Carolina (concluded)

                

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41

   $ 1,130      $ 1,295,081   
    

 

 

 
               27,655,392   

Ohio — 3.0%

    

County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38

     6,125        6,813,389   

County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40

     1,280        1,400,806   

County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.00%, 5/01/39

     5,450        5,835,642   

Pinnacle Community Infrastructure Financing Authority, RB, Facilities, Series A, 6.25%, 12/01/36

     3,760        3,810,234   

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 6/30/53

     1,585        1,672,444   
    

 

 

 
               19,532,515   

Pennsylvania — 1.6%

    

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/42

     2,395        2,508,595   

Pennsylvania Economic Development Financing Authority, RB:

    

Aqua Pennsylvania, Inc. Project, Series B, 5.00%, 11/15/40

     3,725        4,173,676   

Rapid Bridge Replacement Project, AMT, 5.00%, 6/30/42

     1,660        1,738,202   

 

                
6    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

    Value  

Pennsylvania (concluded)

    

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

   $ 2,155      $ 2,367,160   
    

 

 

 
               10,787,633   

Rhode Island — 0.8%

    

Tobacco Settlement Financing Corp., Refunding RB, Series B, 4.50%, 6/01/45

     5,175        5,074,709   

South Carolina — 3.2%

    

South Carolina State Ports Authority, RB, 5.25%, 7/01/40

     6,455        7,165,243   

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

     12,065        13,523,900   
    

 

 

 
               20,689,143   

Tennessee — 0.4%

    

City of Chattanooga Tennessee Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A,
5.25%, 1/01/45

     2,660        2,889,265   

Texas — 14.9%

    

Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 (e)(f)

     4,370        262,200   

Central Texas Regional Mobility Authority, Refunding RB:

    

Senior Lien, 6.25%, 1/01/46

     4,210        4,847,183   

Sub-Lien, 5.00%, 1/01/33

     700        754,061   

Central Texas Turnpike System, Refunding RB, Series C, 5.00%, 8/15/42

     1,150        1,230,190   

City of Austin Texas Airport System, ARB, Revenue, AMT, 5.00%, 11/15/39

     385        419,908   

City of Dallas Texas Waterworks & Sewer System, Refunding RB, 5.00%, 10/01/35

     2,970        3,392,275   

City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39

     3,000        3,330,750   

City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 11/15/35

     16,425        19,312,515   
Municipal Bonds   

Par  

(000)

    Value  

Texas (continued)

    

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B:

    

7.00%, 1/01/43

   $ 380      $ 450,004   

7.00%, 1/01/48

     500        587,985   

County of Harris Texas-Houston Sports Authority, Refunding RB (NPFGC) (c):

    

3rd Lien, Series A-3, 0.00%, 11/15/37

     26,120        7,818,238   

CAB, Junior Lien, Series H, 0.00%, 11/15/35

     5,000        1,816,650   

CAB, Senior Lien, Series A, 0.00%, 11/15/38

     12,580        3,926,092   

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A (c):

    

0.00%, 9/15/40

     9,780        3,042,754   

0.00%, 9/15/41

     5,420        1,598,412   

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare:

    

6.00%, 8/15/20 (a)

     585        710,605   

6.00%, 8/15/45

     7,345        8,703,972   

Fort Bend County Industrial Development Corp., RB, NRG Energy Project, Series B, 4.75%, 11/01/42

     2,045        2,130,133   

New Hope Cultural Education Facilities Corp., RB, Collegiate Housing Tarleton State University Project, 5.00%, 4/01/35

     355        369,587   

North Texas Tollway Authority, Refunding RB:

    

2nd Tier System, Series F, 6.13%, 1/01/16 (a)

     12,180        12,477,801   

Series A, 5.00%, 1/01/35

     2,255        2,467,466   

Series A, 5.00%, 1/01/38

     1,795        1,950,788   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/32

     2,835        3,044,280   

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015    7


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

    Value  

Texas (concluded)

    

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:

    

LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40

   $ 6,000      $ 7,151,340   

NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39

     5,100        5,976,129   
    

 

 

 
               97,771,318   

Utah — 0.6%

    

Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy, Series A:

    

3.25%, 10/15/36

     1,940        1,705,900   

3.25%, 10/15/42

     3,010        2,513,862   
    

 

 

 
               4,219,762   

Virginia — 1.5%

    

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

    

5.25%, 1/01/32

     3,155        3,427,876   

6.00%, 1/01/37

     5,695        6,504,487   
    

 

 

 
               9,932,363   

Washington — 1.0%

    

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40 (d)

     1,475        1,598,959   

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45

     4,420        5,067,663   
    

 

 

 
               6,666,622   

Wisconsin — 0.3%

    

State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E,
5.00%, 11/15/33

     1,640        1,806,411   
Total Municipal Bonds 124.8%              820,082,292   

Municipal Bonds Transferred to

Tender Option Bond Trusts (i)

  

Par  

(000)

    Value  

Alabama — 0.7%

    

City of Birmingham Alabama Special Care Facilities Financing Authority, Refunding RB, Ascension Health, Senior Credit,
Series C-2, 5.00%, 11/15/36

   $ 4,548      $ 4,764,967   

California — 5.4%

    

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (j)

     5,115        5,697,957   

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/39

     18,540        20,884,754   

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (a)

     4,500        4,894,740   

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33

     3,260        3,733,362   
    

 

 

 
               35,210,813   

Colorado — 2.0%

    

Colorado Health Facilities Authority, RB, Catholic Health (AGM):

    

Series C-3, 5.10%, 10/01/41

     7,600        8,019,140   

Series C-7, 5.00%, 9/01/36

     4,860        5,130,313   
    

 

 

 
               13,149,453   

Connecticut — 3.0%

    

Connecticut State Health & Educational Facility Authority, RB, Yale University:

    

Series T-1, 4.70%, 7/01/29

     9,397        10,013,543   

Series X-3, 4.85%, 7/01/37

     9,366        9,984,398   
    

 

 

 
               19,997,941   

Florida — 1.1%

    

County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34

     6,629        7,526,283   

Massachusetts — 0.8%

    

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

     4,427        4,993,205   

 

                
8    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (i)

  

Par  

(000)

    Value  

New Hampshire — 0.7%

    

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (j)

   $ 3,988      $ 4,497,196   

New York — 9.8%

    

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:

    

Series FF-2, 5.50%, 6/15/40

     3,075        3,517,809   

Series HH, 5.00%, 6/15/31 (j)

     16,393        18,763,012   

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (j)

     3,130        3,563,777   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

     20,865        23,959,906   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (j)

     12,610        14,536,556   
    

 

 

 
               64,341,060   

Texas — 3.0%

    

City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43

     4,900        5,404,945   

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

     6,650        7,502,264   

University of Texas, Refunding RB, Financing System, Series B, 5.00%, 8/15/43

     6,001        6,790,208   
    

 

 

 
               19,697,417   

Utah — 1.2%

    

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41

     7,150        7,784,490   

Municipal Bonds Transferred to

Tender Option Bond Trusts (i)

  

Par  

(000)

    Value  

Virginia — 1.8%

    

University of Virginia, Refunding RB, General, 5.00%, 6/01/40

   $ 10,767      $ 11,813,951   

Washington — 3.3%

    

Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/17 (a)

     5,459        5,884,398   

State of Washington, GO, Various Purposes, Series E, 5.00%, 2/01/34

     14,487        16,133,456   
    

 

 

 
               22,017,854   

Total Municipal Bonds Transferred to

Tender Option Bond Trusts 32.8%

             215,794,630   

Total Long-Term Investments

(Cost — $964,823,432) — 157.6%

             1,035,876,922   
    
                  
Short-Term Securities               

FFI Institutional Tax-Exempt Fund, 0.01% (k)(l)

     13,089,528        13,089,528   

Total Short-Term Securities

(Cost — $13,089,528) — 2.0%

             13,089,528   

Total Investments (Cost — $977,912,960*) — 159.6%

  

    1,048,966,450   
Other Assets Less Liabilities 0.3%        1,712,273   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (18.7)%        (122,727,071
VMTP Shares, at Liquidation Value (41.2)%        (270,800,000
    

 

 

 
Net Assets Applicable to Common Shares 100.0%      $ 657,151,652   
    

 

 

 

 

*   As of July 31, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

  $ 857,730,830   
 

 

 

 

Gross unrealized appreciation

  $ 84,111,284   

Gross unrealized depreciation

    (15,563,590
 

 

 

 

Net unrealized appreciation

  $ 68,547,694   
 

 

 

 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015    9


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Notes to Schedule of Investments

 

(a)   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.

 

(b)   Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

(c)   Zero-coupon bond.

 

(d)   When-issued security. Unsettled when-issued transactions were as follows:

 

Counterparty   Value        Unrealized
Appreciation
 

Morgan Stanley & Co. LLC

  $ 1,598,959         $ 18,924   

Wells Fargo Bank N.A.

    829,828           11,390   

 

(e)   Non-income producing security.

 

(f)   Issuer filed for bankruptcy and/or is in default of interest payments.

 

(g)   Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.

 

(h)   Variable rate security. Rate shown is as of report date.

 

(i)   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.

 

(j)   All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust or in the event of a default on the security. In the case of a shortfall or default, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expires from October 1, 2016 to November 15, 2019 is $25,981,887.

 

(k)   During the period ended July 31, 2015, 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,

2015

       Net
Activity
      

Shares Held
at July 31,

2015

       Income  

FFI Institutional Tax-Exempt Fund

       4,155,414           8,934,114           13,089,528         $ 460   

 

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

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.            
AGM    Assured Guaranty Municipal Corp.            
AMT    Alternative Minimum Tax (subject to)            
ARB    Airport Revenue Bonds            
CAB    Capital Appreciation Bonds            
EDA    Economic Development Authority            
EDC    Economic Development Corp.            
GARB    General Airport Revenue Bonds            
GO    General Obligation Bonds            
LRB    Lease Revenue Bonds            
NPFGC    National Public Finance Guarantee Corp.            
RB    Revenue Bonds            
S/F    Single-Family            

 

                
10    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015   


Schedule of Investments (continued)    BlackRock Municipal Income Trust (BFK)

 

 

 

Financial Futures Contracts

 

Contracts
Short
    Issue   Exchange   Expiration   Notional
Value
    Unrealized
Depreciation
 
  (348   10-Year U.S. Treasury Note   Chicago Board of Trade   September 2015   $ 44,348,250      $ (90,296

 

Fair Value Hierarchy as of July 31, 2015

 

 

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

 

   

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

 

   

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as level 3.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Fund’s most recent financial statements as contained in its annual report.

As of July 31, 2015, the following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 1,035,876,922              $ 1,035,876,922   

Short-Term Securities

  $ 13,089,528                          13,089,528   
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 13,089,528         $ 1,035,876,922              $ 1,048,966,450   
 

 

 

      

 

 

      

 

    

 

 

 

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

       

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments2             

Liabilities:

                

Interest rate contracts

  $ (90,296                     $ (90,296

2    Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

       

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015    11


Schedule of Investments (concluded)

  

BlackRock Municipal Income Trust (BFK)

 

 

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of July 31, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1           Level 2         Level 3        Total   

Assets:

                

Cash pledged for financial futures contracts

  $ 469,800                        $ 469,800   

Liabilities:

                

TOB Trust Certificates

            $ (122,687,926             (122,687,926

VMTP Shares

              (270,800,000             (270,800,000
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 469,800         $ (393,487,926           $ (393,018,126
 

 

 

      

 

 

      

 

    

 

 

 

During the period ended July 31, 2015, there were no transfers between levels.

 

                
12    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2015   


Item 2     Controls and Procedures
2(a) –     The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) –     There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3     Exhibits
    Certifications – Attached hereto


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

BlackRock Municipal Income Trust

 

By:      /s/ John M. Perlowski                        
     John M. Perlowski
     Chief Executive Officer (principal executive officer) of
     BlackRock Municipal Income Trust

Date: September 22, 2015

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

 

By:      /s/ John M. Perlowski                        
     John M. Perlowski
     Chief Executive Officer (principal executive officer) of
     BlackRock Municipal Income Trust

 

Date: September 22, 2015
By:      /s/ Neal J. Andrews                            
     Neal J. Andrews
     Chief Financial Officer (principal financial officer) of
     BlackRock Municipal Income Trust
Date: September 22, 2015