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: 04/30/2017

Date of reporting period: 07/31/2016


Item 1 – Schedule of Investments

 


Schedule of Investments July 31, 2016 (Unaudited)

  

BlackRock Municipal Income Trust (BFK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 4.3%

  

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

   $ 2,910      $ 2,926,965   

County of Jefferson Alabama Sewer, Refunding RB:

    

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

     1,555        1,777,241   

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

     2,275        2,619,003   

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

     5,740        6,961,759   

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

     1,765        2,282,004   

Lower Alabama Gas District, RB, Series A:

    

5.00%, 9/01/34

     3,530        4,561,819   

5.00%, 9/01/46

     2,825        3,870,222   

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

     4,080        4,863,074   
    

 

 

 
               29,862,087   

Arizona — 3.2%

  

Salt Verde Financial Corp., RB, Senior:

    

5.00%, 12/01/32

     10,030        12,561,171   

5.00%, 12/01/37

     7,460        9,578,565   
    

 

 

 
               22,139,736   

California — 13.8%

  

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

     4,445        5,034,274   

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

     6,230        7,453,447   

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

     2,465        2,960,194   

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

    

5.25%, 8/15/39

     290        342,000   

5.25%, 8/15/49

     715        837,572   

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

     2,970        3,343,210   
Municipal Bonds   

Par  

(000)

    Value  

California (continued)

  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A (b):

    

5.00%, 12/01/41

   $ 1,030      $ 1,184,449   

5.00%, 12/01/46

     1,250        1,431,762   

California Statewide Communities Development Authority, Refunding RB, John Muir Health, Series A, 4.00%, 8/15/51

     4,470        4,849,816   

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

    

Senior, 5.00%, 5/15/40

     11,690        13,323,093   

5.25%, 5/15/39

     1,560        1,747,606   

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

     690        871,580   

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

    

0.00%, 6/01/41

     5,000        1,935,000   

0.00%, 6/01/42

     6,000        2,212,440   

0.00%, 6/01/43

     5,000        1,728,500   

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

     7,000        8,183,350   

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

    

0.00%, 8/01/34

     3,500        2,040,220   

0.00%, 8/01/36

     4,000        2,041,720   

State of California, GO, Various Purposes:

    

6.00%, 3/01/33

     4,970        5,865,047   

6.50%, 4/01/33

     20,410        23,560,488   

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

    

Series I, 5.00%, 11/01/38

     1,495        1,800,937   

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

     2,315        2,727,649   
    

 

 

 
               95,474,354   

Colorado — 0.7%

  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34

     4,205        4,716,875   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016    1


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Connecticut — 0.4%

    

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

   $ 2,710      $ 3,030,430   

Delaware — 2.3%

    

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

     2,225        2,505,728   

Delaware Transportation Authority, RB, 5.00%, 6/01/55

     2,280        2,687,869   

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

     10,080        11,053,325   
    

 

 

 
               16,246,922   

District of Columbia — 4.3%

    

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

     1,480        1,781,683   

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

     23,035        23,864,490   

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

    

5.00%, 10/01/39

     990        1,102,227   

5.25%, 10/01/44

     2,465        2,754,342   
    

 

 

 
               29,502,742   

Florida — 2.7%

    

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

     2,620        3,084,762   

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

     2,280        2,621,749   

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

    

5.00%, 6/01/32

     600        661,038   

5.00%, 6/01/36

     125        136,885   

5.13%, 6/01/42

     1,925        2,126,143   

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

     5,885        7,703,171   
Municipal Bonds   

Par  

(000)

    Value  

Florida (continued)

    

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

   $ 3,400      $ 2,378,980   
    

 

 

 
               18,712,728   

Georgia — 2.0%

    

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

     4,370        5,304,568   

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

     1,010        1,252,259   

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

     1,650        1,861,200   

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

     5,000        5,581,500   
    

 

 

 
               13,999,527   

Hawaii — 0.4%

    

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

     2,660        3,034,741   

Illinois — 17.4%

    

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

     3,560        3,624,116   

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

  

 

Project, 5.25%, 1/01/32

     6,155        6,411,787   

5.00%, 1/01/34

     2,500        2,559,025   

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

     11,385        13,855,317   

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

     2,055        2,282,530   

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

     7,625        8,506,984   

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

     2,025        2,360,522   

Illinois Finance Authority, RB, Advocate Health Care Network:

  

 

5.38%, 4/01/19 (a)

     5,010        5,631,791   

5.38%, 4/01/44

     5,620        6,169,580   
 

 

                
2    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Illinois (continued)

    

Illinois Finance Authority, Refunding RB:

    

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

   $ 1,895      $ 2,191,568   

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

     3,160        3,614,313   

Presence Health Network, Series C,
5.00%, 2/15/36 (f)

     415        473,208   

Presence Health Network, Series C,
4.00%, 2/15/41 (f)

     2,805        2,812,153   

Illinois State Toll Highway Authority, RB:

    

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

     5,095        6,073,953   

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

     5,455        6,498,541   

Series A, 5.00%, 1/01/38

     4,550        5,273,587   

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

    

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

     14,710        15,969,911   

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

     3,905        4,130,045   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     885        1,042,486   

6.00%, 6/01/28

     2,245        2,692,114   

State of Illinois, GO:

    

5.00%, 2/01/39

     2,990        3,228,482   

Series A, 5.00%, 4/01/38

     9,030        9,679,347   

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

     1,240        1,374,887   

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

    

5.00%, 4/01/39

     1,565        1,805,838   

5.00%, 4/01/44

     1,910        2,195,392   
    

 

 

 
               120,457,477   

Indiana — 3.8%

    

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

    

6.75%, 1/01/34

     1,525        1,888,057   

7.00%, 1/01/44

     3,680        4,605,814   

Indiana Finance Authority, RB, Series A:

    

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

     6,305        7,508,498   
Municipal Bonds   

Par  

(000)

    Value  

Indiana (continued)

    

Indiana Finance Authority, RB, Series A (continued):

    

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

   $ 880      $ 989,252   

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

     2,905        3,246,425   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT,
5.25%, 1/01/51

     790        892,439   

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

     1,655        1,861,561   

Indiana Municipal Power Agency, RB, Series B,
6.00%, 1/01/19 (a)

     2,150        2,424,856   

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

     2,490        2,950,575   
    

 

 

 
               26,367,477   

Iowa — 1.6%

    

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

    

5.00%, 12/01/19

     1,740        1,807,408   

5.50%, 12/01/22

     4,595        4,778,340   

5.25%, 12/01/25

     2,125        2,292,365   

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

     2,370        2,524,524   
    

 

 

 
               11,402,637   

Kentucky — 0.6%

    

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

     1,915        2,198,688   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016    3


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Kentucky (continued)

    

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

   $ 2,325      $ 2,072,854   
    

 

 

 
               4,271,542   

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        7,865,003   

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

    

5.50%, 5/15/30

     1,980        2,265,655   

5.25%, 5/15/31

     1,690        1,916,764   

5.25%, 5/15/32

     2,160        2,489,184   

5.25%, 5/15/33

     2,345        2,683,290   

5.25%, 5/15/35

     985        1,132,996   
    

 

 

 
               18,352,892   

Maryland — 1.1%

    

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

     855        958,079   

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

     1,440        1,430,870   

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

     4,295        5,093,827   
    

 

 

 
               7,482,776   

Massachusetts — 1.6%

    

Commonwealth of Massachusetts, GO, Series E,
3.00%, 4/01/44

     5,645        5,625,863   

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

     2,775        2,826,449   
Municipal Bonds   

Par  

(000)

    Value  

Massachusetts (continued)

    

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

   $ 2,535      $ 2,824,370   
    

 

 

 
               11,276,682   

Michigan — 3.3%

    

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

     8,665        9,933,036   

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

     2,870        3,415,731   

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

     2,700        3,066,876   

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

     1,710        1,926,879   

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

     4,230        4,285,582   
    

 

 

 
               22,628,104   

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        581,437   

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

     2,035        2,231,520   

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

     480        548,760   
    

 

 

 
               3,361,717   

Nebraska — 1.4%

    

Central Plains Energy Project Nebraska, RB, Gas Project No. 3: 5.25%, 9/01/37

     1,610        1,846,847   
 

 

                
4    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Nebraska (continued)

    

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

    

5.00%, 9/01/42

   $ 2,815      $ 3,174,532   

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

     3,280        3,641,456   

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

     600        679,464   
    

 

 

 
               9,342,299   

Nevada — 0.7%

    

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

     4,550        4,609,833   

New Jersey — 9.2%

    

Casino Reinvestment Development Authority, Refunding RB:

    

5.25%, 11/01/39

     3,280        3,499,104   

5.25%, 11/01/44

     2,980        3,166,280   

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45 (b)

     2,115        2,212,375   

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

     3,680        145,102   

New Jersey EDA, RB, AMT:

    

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

     1,575        1,676,068   

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

     3,830        4,288,566   

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

     2,035        2,365,057   

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

     2,285        2,658,506   

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

     8,000        10,020,560   

New Jersey State Turnpike Authority, RB:

    

Series A, 5.00%, 1/01/43

     8,150        9,528,817   

Series E, 5.00%, 1/01/45

     5,095        6,052,605   
Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

    

New Jersey Transportation Trust Fund Authority, RB:

    

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

   $ 3,765      $ 4,175,385   

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

     8,000        8,920,160   

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

     4,810        5,320,533   
    

 

 

 
               64,029,118   

New York — 13.1%

    

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

    

8.00%, 8/01/28

     5,000        5,051,300   

7.75%, 8/01/31

     22,140        22,366,935   

City of New York New York Transitional Finance Authority, RB, Fiscal 2012, Sub-Series E-1,
5.00%, 2/01/42

     4,805        5,679,366   

Counties of New York Tobacco Trust II, RB, Settlement Pass-Through, 5.75%, 6/01/43

     5,000        5,025,050   

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

     3,600        3,810,852   

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

     1,778        2,069,897   

Metropolitan Transportation Authority, RB, Series B:

    

5.25%, 11/15/38

     4,640        5,727,013   

5.25%, 11/15/39

     1,650        2,035,193   

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        2,729,568   

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

     7,830        8,978,191   

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

     660        742,328   

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

     1,655        1,928,439   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016    5


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

    

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

   $ 6,655      $ 7,917,054   

New York Transportation Development Corp., RB, Laguardia Airport Terminal B Redevelopment Project, Series A (AMT), 5.00%, 7/01/41

     1,165        1,335,253   

New York Transportation Development Corp., Refunding RB, American Airlines, Inc., AMT:

    

5.00%, 8/01/26

     1,725        1,915,561   

5.00%, 8/01/31

     1,940        2,124,766   

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

     1,575        1,611,020   

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        2,978,717   

6.00%, 12/01/42

     1,960        2,305,646   

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

     4,600        4,599,586   
    

 

 

 
               90,931,735   

North Carolina — 2.2%

    

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

     10,000        11,096,200   

North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/19 (a)

     2,750        3,084,813   

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

     1,130        1,307,274   
    

 

 

 
               15,488,287   

Ohio — 4.3%

    

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.88%, 6/01/47

     9,530        9,457,953   
Municipal Bonds   

Par  

(000)

    Value  

Ohio (continued)

    

County of Allen Ohio Hospital Facilities, Refunding RB, Series A:

    

Catholic Healthcare Partners,
5.25%, 6/01/38

   $ 6,125      $ 6,922,291   

Mercy Health, 4.00%, 11/01/44

     4,090        4,399,368   

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

     1,280        1,458,278   

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

     5,450        5,883,003   

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

     1,585        1,791,605   
    

 

 

 
               29,912,498   

Pennsylvania — 1.5%

    

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

     1,240        1,391,776   

Pennsylvania Economic Development Financing Authority, RB:

    

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

     3,725        4,164,326   

Pennsylvania Bridge Finco LP, AMT,
5.00%, 6/30/42

     1,660        1,950,766   

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

     2,155        2,561,756   
    

 

 

 
               10,068,624   

Rhode Island — 2.2%

    

Tobacco Settlement Financing Corp., Refunding RB:

    

Series A, 5.00%, 6/01/35

     1,610        1,807,789   

Series A, 5.00%, 6/01/40

     1,450        1,614,068   

Series B, 4.50%, 6/01/45

     5,175        5,532,799   

Series B, 5.00%, 6/01/50

     5,765        6,177,082   
    

 

 

 
               15,131,738   

South Carolina — 4.6%

    

State of South Carolina Ports Authority, RB:

    

5.25%, 7/01/40

     6,455        7,327,458   

AMT, 5.25%, 7/01/55

     2,525        2,948,897   
 

 

                
6    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

South Carolina (continued)

    

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

   $ 12,065      $ 14,528,191   

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

     6,140        7,424,549   
    

 

 

 
               32,229,095   

Tennessee — 0.7%

    

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

     2,660        3,054,052   

Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 7/01/46

     1,350        1,621,269   
    

 

 

 
               4,675,321   

Texas — 12.0%

    

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

     4,370        74,115   

Central Texas Regional Mobility Authority, Refunding RB:

    

Senior Lien, 6.25%, 1/01/21 (a)

     4,210        5,184,278   

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

     700        797,874   

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

     1,150        1,340,095   

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

     385        446,673   

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

     2,970        3,445,972   

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

     3,000        3,266,310   

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien,
Series A (AGC):

    

6.00%, 5/15/19 (a)

     15,560        17,847,476   

6.00%, 11/15/35

     865        994,681   
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      $ 457,125   

7.00%, 1/01/48

     500        597,730   

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

    

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

     26,120        8,925,988   

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

     5,000        2,227,850   

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

     12,580        5,034,390   

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        3,720,899   

0.00%, 9/15/41

     5,420        1,957,108   

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

    

6.00%, 8/15/20

     585        704,404   

6.00%, 8/15/20

     7,345        8,860,421   

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

     470        513,771   

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

     355        405,353   

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

     2,835        3,211,034   

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

    

LBJ Infrastructure Group LLC, 7.00%, 6/30/40

     6,000        7,109,940   
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016    7


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

Municipal Bonds   

Par  

(000)

    Value  

Texas (continued)

    

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

    

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

   $ 5,100      $ 6,049,722   
    

 

 

 
               83,173,209   

Utah — 0.3%

    

Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy, Series A,
3.25%, 10/15/42

     1,880        1,894,457   

Virginia — 1.3%

    

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

    

5.25%, 1/01/32

     3,155        3,620,426   

6.00%, 1/01/37

     4,615        5,512,940   
    

 

 

 
               9,133,366   

Washington — 1.0%

    

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

     1,475        1,732,874   

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

     4,420        5,346,034   
    

 

 

 
               7,078,908   

Wisconsin — 0.8%

    

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

     1,640        1,855,906   

Wisconsin Health & Educational Facilities Authority, Refunding RB, Medical College of Wisconsin, Inc., 4.00%, 12/01/46

     3,545        3,872,203   
    

 

 

 
               5,728,109   
Total Municipal Bonds – 121.9%        845,748,043   

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%, 11/15/16 (a)

   $ 4,548      $ 4,609,129   

California — 5.0%

    

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

     5,115        5,609,109   

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

     18,540        20,976,156   

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

     4,500        4,705,560   

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

     3,260        3,706,984   
    

 

 

 
               34,997,809   

Colorado — 1.9%

    

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

    

Series C-3, 5.10%, 4/29/18

     7,600        8,200,476   

Series C-7, 5.00%, 5/01/18

     4,860        5,236,699   
    

 

 

 
               13,437,175   

Connecticut — 2.8%

    

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

    

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

     9,397        9,742,329   

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

     9,366        9,722,038   
    

 

 

 
               19,464,367   

Florida — 1.1%

    

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

     6,629        7,624,023   

Massachusetts — 0.8%

    

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

     4,427        5,236,418   
 

 

                
8    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

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%, 6/01/19 (a)(j)

   $ 3,989      $ 4,500,260   

New York — 12.1%

    

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        3,483,360   

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

     16,395        19,459,225   

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

     3,130        3,700,574   

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

     8,799        10,863,976   

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

     20,864        25,119,276   

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

     12,611        15,256,896   

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

     5,070        6,299,678   
    

 

 

 
               84,182,985   

North Carolina — 0.9%

    

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55

     4,960        6,038,701   

Texas — 3.0%

    

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

     4,900        5,802,384   

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

     6,650        7,809,627   
Municipal Bonds Transferred to
Tender Option Bond Trusts (i)
  

Par  

(000)

    Value  

Texas (continued)

    

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

   $ 6,003      $ 7,174,178   
    

 

 

 
               20,786,189   

Utah — 1.1%

    

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

     7,153        7,870,660   

Virginia — 1.7%

    

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

     10,767        11,622,711   

Washington — 3.1%

    

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

     5,459        5,761,421   

State of Washington, GO, Various Purposes, Series E, 5.00%, 2/01/19 (a)

     14,487        16,063,421   
    

 

 

 
               21,824,842   

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 34.9%

  

  

    242,195,269   
Total Long-Term Investments
(Cost — $976,443,283) — 156.8%
        1,087,943,312   
    
                  
Short-Term Securities    Shares         

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.26% (k)(l)

     8,309,779        8,309,779   
Total Short-Term Securities
(Cost — $8,309,779) — 1.2%
        8,309,779   
Total Investments
(Cost — $984,753,062*) — 158.0%
        1,096,253,091   

Other Assets Less Liabilities — 0.5%

  

    3,784,704   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (19.5)%

   

    (135,292,778

Loan for TOB Trust Certificates — (0.0)%

  

    (60,424

VMTP Shares, at Liquidation Value — (39.0)%

  

    (270,800,000
    

 

 

 

Net Assets Applicable to Common Shares — 100.0%

  

  $ 693,884,593   
    

 

 

 

 

*   As of July 31, 2016, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

  $ 851,706,558   
 

 

 

 

Gross unrealized appreciation

  $ 120,312,302   

Gross unrealized depreciation

    (10,920,739
 

 

 

 

Net unrealized appreciation

  $ 109,391,563   
 

 

 

 
 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016    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)   Non-income producing security.

 

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

 

(f)   When-issued security.

 

(g)   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.

 

(h)   Variable rate security. Rate as of period end.

 

(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. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between October 1 2016 and November 15, 2019 is $50,831,974.

 

(k)   During the period ended July 31, 2016, investments in issuers considered to be affiliates 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 July 31,

2016

      

Value

at July 31,

2016

       Income  

BlackRock Liquidity Funds, MuniCash, Institutional Class

       14,214,479           (5,904,700      $ 8,309,779         $ 8,309,779         $ 4,186   

 

(l)   Current yield as of period end.

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts                    

Contracts

Short

    Issue     Expiration    

Notional

Value

   

Unrealized

Appreciation

(Depreciation)

 
  (76     5-Year U.S. Treasury Note        September 2016      $ 9,273,188      $ (3,302
  (80     10-Year U.S. Treasury Note        September 2016      $ 10,643,750        2,859   
  (45     Long U.S. Treasury Bond        September 2016      $ 7,849,687        (157,781
  (16     Ultra U.S. Treasury Bond        September 2016      $ 3,048,500        (53,223
  Total            $ (211,447
       

 

 

 

 

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.

 

 

                
10    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Income Trust (BFK)

 

RB    Revenue Bonds
S/F    Single-Family

 

Fair Value Hierarchy as of Period End

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 Trust has the ability to access

 

   

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

 

   

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. 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 Trust’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 Trust’s policy regarding valuation of investments, refer to the Trust’s most recent financial statements as contained in its annual report.

The following table summarizes 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

            $ 1,087,943,312                   $ 1,087,943,312   

Short-Term Securities

  $ 8,309,779                               8,309,779   
 

 

 

 

Total

  $ 8,309,779         $ 1,087,943,312                   $ 1,096,253,091   
 

 

 

 
                
Derivative Financial Instruments 2                                         

Assets:

                

Interest rate contracts

  $ 2,859                             $ 2,859   

Liabilities:

                

Interest rate contracts

    (214,306                            (214,306
 

 

 

 

Total

  $ (211,447                          $ (211,447
 

 

 

 

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

       

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

       

 

 

                
   BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016    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 period end, 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

  $ 418,800                             $ 418,800   

Liabilities:

                

Bank overdraft

            $ (11,553,363                  (11,553,363

Loan for TOB Trust Certificates

         (60,424             (60,424

TOB Trust Certificates

              (135,154,970                  (135,154,970

VMTP Shares

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

 

 

 

Total

  $ 418,800         $ (417,568,757                $ (417,149,957
 

 

 

 

During the period ended July 31, 2016, there were no transfers between levels.

 

                
12    BLACKROCK MUNICIPAL INCOME TRUST    JULY 31, 2016   


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 21, 2016  

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 21, 2016  
By:  

/s/ Neal J. Andrews

 
  Neal J. Andrews  
  Chief Financial Officer (principal financial officer) of
  BlackRock Municipal Income Trust
Date:   September 21, 2016