N-Q 1 d87249dnq.htm BLACKROCK UTILITY & INFRASTRUCTURE TRUST BlackRock Utility & Infrastructure 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: 811-22606

Name of Fund: BlackRock Utility and Infrastructure Trust (BUI)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Utility and Infrastructure 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: 12/31/2015

Date of reporting period: 09/30/2015


Item 1 – Schedule of Investments


Schedule of Investments September 30, 2015 (Unaudited)      BlackRock Utility and Infrastructure Trust (BUI)   
     (Percentages shown are based on Net Assets)   

 

Common Stocks    Shares      Value  

Construction & Engineering — 3.7%

     

Ferrovial SA

     393,500       $ 9,412,636   

Vinci SA

     40,000         2,543,560   
     

 

 

 
                11,956,196   

Diversified Telecommunication Services — 1.3%

     

Frontier Communications Corp. (a)

     174,300         827,925   

Verizon Communications, Inc. (a)

     79,500         3,459,045   
     

 

 

 
                4,286,970   

Electric Utilities — 21.2%

     

American Electric Power Co., Inc.

     52,700         2,996,522   

Duke Energy Corp. (a)

     172,568         12,414,542   

Edison International (a)

     106,800         6,735,876   

El Paso Electric Co.

     35,900         1,321,838   

Enel SpA

     475,400         2,121,242   

Eversource Energy (a)

     80,900         4,095,158   

Exelon Corp. (a)

     298,600         8,868,420   

Iberdrola SA

     193,400         1,288,674   

ITC Holdings Corp. (a)

     108,900         3,630,726   

NextEra Energy, Inc. (a)(b)

     164,500         16,046,975   

Pinnacle West Capital Corp.

     45,800         2,937,612   

PPL Corp.

     112,400         3,696,836   

Xcel Energy, Inc.

     65,500         2,319,357   
     

 

 

 
                68,473,778   

Gas Utilities — 2.1%

     

Laclede Group, Inc.

     26,700         1,455,951   

New Jersey Resources Corp.

     55,500         1,666,665   

Snam SpA

     724,300         3,719,940   
     

 

 

 
                6,842,556   

Independent Power and Renewable Electricity Producers — 4.9%

  

EDP Renovaveis SA

     333,200         2,189,697   

Enel Green Power SpA

     873,200         1,651,106   

NextEra Energy Partners LP (a)

     126,700         2,762,060   

NRG Energy, Inc.

     107,666         1,598,840   

NRG Yield, Inc., Class A

     168,900         1,883,235   

NRG Yield, Inc., Class C

     168,900         1,960,929   

Pattern Energy Group, Inc.

     100,800         1,924,272   

TerraForm Power, Inc., Class A (a)

     132,000         1,877,040   
     

 

 

 
                15,847,179   

Multi-Utilities — 24.5%

     

CenterPoint Energy, Inc. (a)

     109,700         1,978,988   

CMS Energy Corp. (a)(b)

     434,600         15,350,072   

Dominion Resources, Inc. (a)(b)

     209,500         14,744,610   

DTE Energy Co. (a)

     27,400         2,202,138   

National Grid PLC

     486,200         6,771,355   

NiSource, Inc. (a)

     130,400         2,418,920   

NorthWestern Corp.

     44,592         2,400,387   

Public Service Enterprise Group, Inc.

     234,756         9,897,313   

Sempra Energy (a)

     137,700         13,318,344   

TECO Energy, Inc.

     76,977         2,021,416   

Veolia Environnement SA

     58,400         1,331,886   
Common Stocks    Shares      Value  

Multi-Utilities (continued)

     

WEC Energy Group, Inc. (a)

     123,500       $ 6,449,170   
     

 

 

 
                78,884,599   

Oil, Gas & Consumable Fuels — 18.9%

     

Antero Midstream Partners LP (a)

     78,200         1,396,652   

Columbia Pipeline Group, Inc.

     123,900         2,266,131   

Columbia Pipeline Partners LP

     76,300         965,958   

Delek Logistics Partners LP (a)

     29,700         896,940   

Dominion Midstream Partners LP (a)(c)

     306,500         8,229,525   

Enbridge, Inc. (a)

     96,200         3,571,904   

Energy Transfer Partners LP

     23,696         973,195   

Enterprise Products Partners LP (a)

     185,354         4,615,315   

EQT Midstream Partners LP (a)

     28,600         1,897,038   

GasLog Partners LP

     5,100         82,263   

Genesis Energy LP (a)

     114,869         4,404,077   

Magellan Midstream Partners LP (a)

     59,300         3,564,523   

MarkWest Energy Partners LP (a)

     61,853         2,654,112   

MPLX LP (a)

     44,000         1,681,240   

ONEOK Partners LP (a)

     62,545         1,830,067   

PBF Logistics LP

     18,574         320,030   

Phillips 66 Partners LP

     42,300         2,084,121   

Plains All American Pipeline LP (a)

     87,570         2,660,377   

Rose Rock Midstream LP

     17,400         423,516   

Shell Midstream Partners LP (a)

     299,810         8,823,408   

Sunoco Logistics Partners LP

     78,800         2,258,408   

Tesoro Logistics LP (a)

     33,658         1,514,610   

Valero Energy Partners LP (a)

     36,300         1,603,008   

Western Gas Partners LP

     18,814         880,871   

Williams Partners LP

     39,815         1,270,895   
     

 

 

 
                60,868,184   

Real Estate Investment Trusts (REITs) — 2.4%

     

American Tower Corp. (a)(b)

     77,700         6,836,046   

Crown Castle International Corp. (a)

     11,300         891,231   
     

 

 

 
                7,727,277   

Road & Rail — 0.3%

     

East Japan Railway Co.

     9,600         804,635   

Transportation Infrastructure — 14.2%

     

Abertis Infraestructuras SA

     390,900         6,184,975   

Aeroports de Paris

     29,300         3,325,574   

Atlantia SpA

     418,084         11,694,997   

China Merchants Holdings International Co. Ltd.

     244,000         720,426   

Flughafen Zuerich AG

     6,300         4,384,972   

Fraport AG Frankfurt Airport Services Worldwide

     28,300         1,749,879   

Groupe Eurotunnel SE

     348,800         4,752,241   

Japan Airport Terminal Co. Ltd.

     61,800         2,671,034   

Sydney Airport (d)

     597,666         2,511,859   

Transurban Group (d)

     1,090,300         7,637,354   
     

 

 

 
                45,633,311   
 
      Portfolio Abbreviations
AUD    Australian Dollar      GBP    British Pound    USD    US Dollar
EUR    Euro      JPY    Japanese Yen      

 

 

          SEPTEMBER 30, 2015    1


Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   

 

Common Stocks    Shares      Value  

Water Utilities — 3.5%

  

  

American Water Works Co., Inc. (a)

     201,900       $ 11,120,652   

Wireless Telecommunication Services — 0.7%

     

SBA Communications Corp., Class A (a)(b)(c)

     22,500         2,356,650   

Total Long-Term Investments

(Cost — $ 278,975,972) — 97.7%

  

  

     314,801,987   
     
Short-Term Securities                

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (e)(f)

     10,505,914         10,505,914   

Total Short-Term Securities

(Cost — $ 10,505,914) — 3.3%

              10,505,914   

Total Investments Before Options Written

(Cost — $ 289,481,886*) — 101.0%

  

  

     325,307,901   
     
                  
Options Written    Value  

(Premiums Received — $2,120,635) — (0.7)%

   $ (2,252,093

Total Investments Net of Options Written — 100.3%

     323,055,808   

Liabilities in Excess of Other Assets — (0.3)%

     (810,212
  

 

 

 

Net Assets — 100.0%

   $ 322,245,596   
  

 

 

 
 
      Notes to Schedule of Investments

 

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

 

Tax cost

   $ 286,798,704   
  

 

 

 

Gross unrealized appreciation

   $ 56,620,877   

Gross unrealized depreciation

     (18,111,680
  

 

 

 

Net unrealized appreciation

   $ 38,509,197   
  

 

 

 

 

(a) All or a portion of security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.

 

(b) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

 

(c) Non-income producing security.

 

(d) A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately.

 

(e) During the period ended September 30, 2015, 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:

 

Affiliates   

Shares

Held at
December 31,

2014

     Net
Activity
   

Shares

Held at
September 30,

2015

     Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

     10,776,191         (270,277     10,505,914       $ 7,587   

BlackRock Liquidity Series, LLC Money Market Series

                          $ 1,112 1 

 

  1   

Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

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

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

      Derivative Financial Instruments Outstanding as of Period End

      Exchange-Traded Options Written

 

Description    Put/
Call
     Expiration
Date
  

Strike

Price

     Contracts      Value  

American Tower Corp.

     Call       10/02/15      USD         100.00         160       $ (4,800

Verizon Communications, Inc.

     Call       10/02/15      USD         48.00         30         (270

American Tower Corp.

     Call       10/09/15      USD         94.00         111         (4,440

 

 

 

2         SEPTEMBER 30, 2015     


Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   

 

Description    Put/
Call
     Expiration
Date
  

Strike

Price

     Contracts      Value  

Verizon Communications, Inc.

     Call       10/09/15      USD         47.00         71       $ (355

SBA Communications Corp., Class A

     Call       10/15/15      USD         128.01         80         (2

American Water Works Co., Inc.

     Call       10/16/15      USD         55.00         81         (7,088

Antero Midstream Partners LP

     Call       10/16/15      USD         22.50         137         (3,425

Crown Castle International Corp.

     Call       10/16/15      USD         80.00         39         (3,022

Delek Logistics Partners LP

     Call       10/16/15      USD         40.00         104         (3,640

Dominion Midstream Partners LP

     Call       10/16/15      USD         35.00         135         (8,775

Dominion Resources, Inc.

     Call       10/16/15      USD         70.00         367         (48,628

DTE Energy Co.

     Call       10/16/15      USD         80.00         50         (7,625

DTE Energy Co.

     Call       10/16/15      USD         84.30         48         (1,140

Duke Energy Corp.

     Call       10/16/15      USD         70.00         295         (71,538

Edison International

     Call       10/16/15      USD         62.50         175         (24,938

Enterprise Products Partners LP

     Call       10/16/15      USD         27.50         83         (1,660

EQT Midstream Partners LP

     Call       10/16/15      USD         85.00         75         (2,250

Exelon Corp.

     Call       10/16/15      USD         35.00         270         (1,350

Frontier Communications Corp.

     Call       10/16/15      USD         5.50         203         (1,015

Genesis Energy LP

     Call       10/16/15      USD         45.00         125         (5,000

Magellan Midstream Partners LP

     Call       10/16/15      USD         67.50         105         (2,100

MarkWest Energy Partners LP

     Call       10/16/15      USD         55.00         107         (5,350

MPLX LP

     Call       10/16/15      USD         50.00         77         (385

NextEra Energy Partners LP

     Call       10/16/15      USD         35.00         200         (7,000

NextEra Energy, Inc.

     Call       10/16/15      USD         100.00         185         (12,025

ONEOK Partners LP

     Call       10/16/15      USD         35.00         109         (2,180

Plains All American Pipeline LP

     Call       10/16/15      USD         37.50         100         (1,000

Sempra Energy

     Call       10/16/15      USD         95.00         184         (49,680

Shell Midstream Partners LP

     Call       10/16/15      USD         46.05         194         (9

TerraForm Power, Inc., Class A

     Call       10/16/15      USD         25.00         237         (5,925

Tesoro Logistics LP

     Call       10/16/15      USD         60.00         60         (3,300

Valero Energy Partners LP

     Call       10/16/15      USD         55.00         63         (3,150

Verizon Communications, Inc.

     Call       10/16/15      USD         47.00         40         (200

WEC Energy Group, Inc.

     Call       10/16/15      USD         50.00         24         (5,580

NiSource, Inc.

     Call       10/22/15      USD         17.75         460         (43,854

Enbridge, Inc.

     Call       10/26/15      USD         39.00         90         (7,584

ITC Holdings Corp.

     Call       10/26/15      USD         32.51         142         (18,403

American Water Works Co., Inc.

     Call       10/28/15      USD         53.50         282         (58,298

Eversource Energy

     Call       10/28/15      USD         47.00         141         (53,511

Verizon Communications, Inc.

     Call       10/30/15      USD         46.00         65         (650

Exelon Corp.

     Call       11/05/15      USD         30.30         308         (26,897

Verizon Communications, Inc.

     Call       11/06/15      USD         45.00         36         (1,080

Eversource Energy

     Call       11/18/15      USD         47.00         141         (57,002

American Water Works Co., Inc.

     Call       11/20/15      USD         55.00         81         (11,543

CenterPoint Energy, Inc.

     Call       11/20/15      USD         20.00         123         (1,845

Dominion Resources, Inc.

     Call       11/20/15      USD         72.50         366         (36,600

Edison International

     Call       11/20/15      USD         62.50         199         (47,263

Genesis Energy LP

     Call       11/20/15      USD         40.00         280         (45,500

ITC Holdings Corp.

     Call       11/20/15      USD         34.05         240         (21,411

Sempra Energy

     Call       11/20/15      USD         97.50         155         (37,588

Valero Energy Partners LP

     Call       11/20/15      USD         50.00         64         (4,320

Verizon Communications, Inc.

     Call       11/20/15      USD         45.00         36         (1,566

CMS Energy Corp.

     Call       11/30/15      USD         35.00         699         (84,090

Total

                  $ (857,850
                 

 

 

 

      OTC Options Written

 

Description    Put/
Call
     Counterparty    Expiration
Date
  

Strike

Price

     Contracts      Value  

Abertis Infraestructuras SA

     Call       UBS AG    10/01/15      EUR         14.60         65,600       $ (1,629

Aeroports de Paris

     Call       Deutsche Bank AG    10/01/15      EUR         102.62         2,000         (730

Dominion Midstream Partners LP

     Call       Morgan Stanley & Co. International PLC    10/01/15      USD         33.99         19,000           

El Paso Electric Co.

     Call       Goldman Sachs International    10/01/15      USD         35.35         12,500         (18,379

Enbridge, Inc.

     Call       Citibank N.A.    10/05/15      USD         44.16         25,000           

EDP Renovaveis SA

     Call       Bank of America N.A.    10/06/15      EUR         6.93         18,100           

Japan Airport Terminal Co. Ltd.

     Call       Morgan Stanley & Co. International PLC    10/06/15      JPY         5,610.48         9,800         (2,493

Public Service Enterprise Group, Inc.

     Call       Goldman Sachs International    10/06/15      USD         41.49         44,800         (42,399

 

 

 

          SEPTEMBER 30, 2015    3


Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   

 

Description    Put/
Call
     Counterparty    Expiration
Date
  

Strike

Price

     Contracts      Value  

Aeroports de Paris

     Call       Deutsche Bank AG    10/08/15      EUR         102.91         1,900       $ (2,310

Groupe Eurotunnel SE

     Call       Morgan Stanley & Co. International PLC    10/08/15      EUR         12.62         43,000         (2,095

Iberdrola SA

     Call       Deutsche Bank AG    10/08/15      EUR         5.92         32,900         (4,176

National Grid PLC

     Call       Deutsche Bank AG    10/08/15      GBP         8.72         113,100         (85,341

Shell Midstream Partners LP

     Call       Goldman Sachs International    10/08/15      USD         43.28         22,000           

Enel SpA

     Call       UBS AG    10/09/15      EUR         4.41         81,000         (27

NextEra Energy, Inc.

     Call       Goldman Sachs International    10/12/15      USD         106.60         19,000         (257

Phillips 66 Partners LP

     Call       Citibank N.A.    10/12/15      USD         58.20         15,000         (1,286

Enel Green Power SpA

     Call       Goldman Sachs International    10/13/15      EUR         1.88         149,000         (61

Sydney Airport

     Call       Goldman Sachs International    10/13/15      AUD         5.72         105,000         (22,274

China Merchants Holdings International Co. Ltd.

     Call       UBS AG    10/14/15      HKD         25.95         42,000         (294

EDP Renovaveis SA

     Call       UBS AG    10/14/15      EUR         6.80         18,000         (3

Transurban Group

     Call       UBS AG    10/14/15      AUD         9.73         96,000         (23,808

EDP Renovaveis SA

     Call       Morgan Stanley & Co. International PLC    10/20/15      EUR         6.50         13,200         (275

WEC Energy Group, Inc.

     Call       Morgan Stanley & Co. International PLC    10/20/15      USD         51.34         40,800         (56,002

Public Service Enterprise Group, Inc.

     Call       Morgan Stanley & Co. International PLC    10/21/15      USD         40.13         17,500         (40,761

Vinci SA

     Call       Bank of America N.A.    10/21/15      EUR         60.54         7,000         (1,954

Abertis Infraestructuras SA

     Call       Deutsche Bank AG    10/22/15      EUR         15.10         71,300         (5,885

Enel SpA

     Call       Deutsche Bank AG    10/22/15      EUR         4.23         85,000         (4,799

Pinnacle West Capital Corp.

     Call       Morgan Stanley & Co. International PLC    10/22/15      USD         64.37         15,500         (17,129

Sempra Energy

     Call       Credit Suisse International    10/22/15      USD         95.69         14,300         (37,076

Snam SpA

     Call       Deutsche Bank AG    10/22/15      EUR         4.57         111,400         (14,927

NorthWestern Corp.

     Call       Citibank N.A.    10/23/15      USD         51.08         15,600         (46,663

Sydney Airport

     Call       Goldman Sachs International    10/23/15      AUD         5.83         104,200         (19,128

Aeroports de Paris

     Call       Deutsche Bank AG    10/27/15      EUR         102.84         2,500         (6,328

Atlantia SpA

     Call       Deutsche Bank AG    10/27/15      EUR         24.48         73,000         (90,383

EDP Renovaveis SA

     Call       UBS AG    10/27/15      EUR         6.01         18,000         (2,802

Enel Green Power SpA

     Call       Bank of America N.A.    10/27/15      EUR         1.69         150,000         (10,764

Fraport AG Frankfurt Airport Services Worldwide

     Call       Bank of America N.A.    10/27/15      EUR         55.69         10,000         (12,699

Fraport AG Frankfurt Airport Services Worldwide

     Call       Deutsche Bank AG    10/27/15      EUR         55.04         5,000         (8,120

Groupe Eurotunnel SE

     Call       Morgan Stanley & Co. International PLC    10/27/15      EUR         12.23         44,000         (15,154

National Grid PLC

     Call       Morgan Stanley & Co. International PLC    10/27/15      GBP         8.76         57,000         (44,032

Snam SpA

     Call       Deutsche Bank AG    10/27/15      EUR         4.53         140,000         (23,311

Transurban Group

     Call       Citibank N.A.    10/27/15      AUD         9.91         95,000         (21,220

Veolia Environnement SA

     Call       Bank of America N.A.    10/27/15      EUR         20.89         10,000         (6,069

Exelon Corp.

     Call       Deutsche Bank AG    10/28/15      USD         31.59         27,000         (11,426

Shell Midstream Partners LP

     Call       Citibank N.A.    10/28/15      USD         36.26         22,000         (8,025

CMS Energy Corp.

     Call       Citibank N.A.    10/29/15      USD         33.16         17,500         (40,110

Dominion Midstream Partners LP

     Call       Citibank N.A.    10/29/15      USD         36.03         33,000         (386

East Japan Railway Co.

     Call       Goldman Sachs International    10/29/15      JPY         10,676.99         3,400         (6,329

EDP Renovaveis SA

     Call       UBS AG    10/29/15      EUR         6.56         13,200         (423

American Electric Power Co., Inc.

     Call       Deutsche Bank AG    10/30/15      USD         56.56         8,000         (10,877

Laclede Group, Inc.

     Call       Credit Suisse International    11/02/15      USD         52.73         9,300         (24,318

Aeroports de Paris

     Call       Goldman Sachs International    11/04/15      EUR         100.47         3,900         (16,241

Atlantia SpA

     Call       Deutsche Bank AG    11/04/15      EUR         24.59         75,000         (90,838

China Merchants Holdings International Co. Ltd.

     Call       UBS AG    11/04/15      HKD         25.05         44,000         (2,412

EDP Renovaveis SA

     Call       UBS AG    11/04/15      EUR         5.88         7,000         (1,739

Ferrovial SA

     Call       Morgan Stanley & Co. International PLC    11/04/15      EUR         21.62         109,000         (50,602

Veolia Environnement SA

     Call       Deutsche Bank AG    11/04/15      EUR         20.89         10,000         (6,576

Exelon Corp.

     Call       Deutsche Bank AG    11/05/15      USD         31.21         19,700         (12,969

NextEra Energy, Inc.

     Call       Morgan Stanley & Co. International PLC    11/05/15      USD         98.39         20,000         (39,369

Xcel Energy, Inc.

     Call       Citibank N.A.    11/05/15      USD         33.65         23,000         (46,610

CMS Energy Corp.

     Call       Citibank N.A.    11/06/15      USD         35.72         45,000         (23,754

Transurban Group

     Call       UBS AG    11/06/15      AUD         9.93         191,000         (44,272

Iberdrola SA

     Call       Deutsche Bank AG    11/10/15      EUR         6.07         34,700         (4,870

EDP Renovaveis SA

     Call       Morgan Stanley & Co. International PLC    11/11/15      EUR         6.08         21,400         (3,855

CMS Energy Corp.

     Call       Credit Suisse International    11/12/15      USD         33.47         19,500         (37,820

Dominion Midstream Partners LP

     Call       Deutsche Bank AG    11/12/15      USD         30.79         21,000         (8,324

Japan Airport Terminal Co. Ltd.

     Call       Morgan Stanley & Co. International PLC    11/12/15      JPY         5,330.44         11,800         (20,365

 

 

 

4         SEPTEMBER 30, 2015     


Schedule of Investments (continued)      BlackRock Utility and Infrastructure Trust (BUI)   

 

Description    Put/
Call
     Counterparty    Expiration
Date
  

Strike

Price

     Contracts      Value  

New Jersey Resources Corp.

     Call       Morgan Stanley & Co. International PLC    11/12/15      USD         28.70         19,500       $ (29,946

Groupe Eurotunnel SE

     Call       UBS AG    11/13/15      EUR         12.41         35,000         (11,322

Ferrovial SA

     Call       Bank of America N.A.    11/18/15      EUR         21.77         28,800         (14,478

American Water Works Co., Inc.

     Call       Morgan Stanley & Co. International PLC    11/19/15      USD         53.90         26,200         (50,230

PPL Corp.

     Call       Citibank N.A.    11/19/15      USD         32.30         39,600         (43,833

Vinci SA

     Call       Bank of America N.A.    11/24/15      EUR         58.03         7,000         (11,965

American Electric Power Co., Inc.

     Call       Deutsche Bank AG    11/30/15      USD         57.14         10,300         (13,943

Dominion Midstream Partners LP

     Call       Deutsche Bank AG    11/30/15      USD         30.79         21,000         (12,973

Total

                     $ (1,394,243
                    

 

 

 

 

      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.

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 and derivative financial instruments, refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1     Level 2     Level 3      Total  

Assets:

         

Investments:

         

Long-Term Investments:

         

Common Stocks:

         

Construction & Engineering

          $ 11,956,196              $ 11,956,196   

Diversified Telecommunication Services

   $ 4,286,970                       4,286,970   

Electric Utilities

     65,063,862        3,409,916                68,473,778   

Gas Utilities

     3,122,616        3,719,940                6,842,556   

Independent Power and Renewable Electricity Producers

     12,006,376        3,840,803                15,847,179   

Multi-Utilities

     70,781,358        8,103,241                78,884,599   

Oil, Gas & Consumable Fuels

     60,868,184                       60,868,184   

Real Estate Investment Trusts (REITs)

     7,727,277                       7,727,277   

Road & Rail

     804,635                       804,635   

Transportation Infrastructure

            45,633,311                45,633,311   

Water Utilities

     11,120,652                       11,120,652   

Wireless Telecommunication Services

     2,356,650                       2,356,650   

Short-Term Securities

     10,505,914                       10,505,914   
  

 

 

 

Total

   $     248,644,494      $     76,663,407            —       $     325,307,901   
  

 

 

 
  
      Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

         

Liabilities:

         

Equity contracts

   $ (485,646   $ (1,766,447           $ (2,252,093
  

 

 

 

1   Derivative financial instruments are options written, which are shown at value.

         

 

 

          SEPTEMBER 30, 2015    5


Schedule of Investments (concluded)      BlackRock Utility and Infrastructure Trust (BUI)   

 

The Trust may hold assets in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets are categorized within the disclosure hierarchy as follows:

 

   

      Level 1      Level 2      Level 3      Total  

Assets:

           

Cash

   $ 2                       $ 2   

Foreign currency at value

     1,964                         1,964   
  

 

 

 

Total

   $     1,966             —             —       $     1,966   
  

 

 

 

During the period ended September 30, 2015, there were no transfers between levels.

 

 

6         SEPTEMBER 30, 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 Utility and Infrastructure Trust

 

By:      

    /s/ John M. Perlowski

 
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of BlackRock Utility and Infrastructure Trust
Date: November 23, 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 Utility and Infrastructure Trust
Date: November 23, 2015
By:  

    /s/ Neal J. Andrews

 
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of BlackRock Utility and Infrastructure Trust
Date: November 23, 2015