N-CSR 1 d228325dncsr.htm BLACKROCK MUNIVEST FUND, INC. BLACKROCK MUNIVEST FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-05611

 

Name of Fund:   BlackRock MuniVest Fund, Inc. (MVF)

 

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniVest Fund, Inc.,
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: 08/31/2021

Date of reporting period: 08/31/2021


Item 1 –

Report to Stockholders

(a) The Report to Shareholders is attached herewith.


 

LOGO

  AUGUST 31, 2021

 

 
    

 

2021 Annual Report

 

 

BlackRock Municipal Income Quality Trust (BYM)

BlackRock Municipal Income Trust II (BLE)

BlackRock MuniHoldings Investment Quality Fund (MFL)

BlackRock MuniVest Fund, Inc. (MVF)

 

 

 

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

 


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of August 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States, along with most of the world, began the reporting period emerging from a severe recession, prompted by pandemic-related restrictions that disrupted many aspects of daily life. However, easing restrictions and robust government intervention led to a strong rebound, and the economy grew at a significant pace for the reporting period, eventually regaining the output lost from the pandemic.

Equity prices rose with the broader economy, as strong fiscal and monetary support, as well as the development of vaccines, made investors increasingly optimistic about the economic outlook. The implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets rebounded substantially.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, although investment-grade corporates declined slightly.

The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2023 and reducing bond purchasing beginning in late 2022.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and healthcare, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart. We are underweight long-term credit, but inflation-protected U.S. Treasuries and Asian fixed income offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of August 31, 2021
     6-Month    12-Month 
   

U.S. large cap equities
(S&P 500® Index)

  19.52%   31.17%
   

U.S. small cap equities
(Russell 2000® Index)

  3.81   47.08    
   

International equities
(MSCI Europe, Australasia, Far East Index)

  10.31     26.12    
   

Emerging market equities
(MSCI Emerging Markets Index)

  (0.98)   21.12    
   

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

  0.02   0.08    
   

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

  2.36   (4.12)    
   

U.S. investment grade bonds
(Bloomberg U.S. Aggregate Bond Index)

  1.49   (0.08)    
   

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

  2.50   3.44    
   

U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

  3.82   10.14    
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

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Table of Contents

 

 

      Page  

The Markets in Review

     2  

Annual Report:

  

Municipal Market Overview

     4  

The Benefits and Risks of Leveraging

     5  

Derivative Financial Instruments

     5  

Trust Summary

     6  

Financial Statements:

  

Schedules of Investments

     18  

Statements of Assets and Liabilities

     53  

Statements of Operations

     54  

Statements of Changes in Net Assets

     55  

Statements of Cash Flows

     57  

Financial Highlights

     59  

Notes to Financial Statements

     63  

Report of Independent Registered Public Accounting Firm

     75  

Important Tax Information

     76  

Disclosure of Investment Advisory Agreements

     77  

Investment Objectives, Policies and Risks

     81  

Automatic Dividend Reinvestment Plan

     90  

Trustee and Officer Information

     91  

Additional Information

     95  

Glossary of Terms Used in this Report

     99  

 

 

  3


Municipal Market Overview For the Reporting Period Ended August 31, 2021

 

Municipal Market Conditions

Municipal bonds posted positive total returns during the period despite rising interest rates as the economy normalized from the pandemic-induced economic shutdown. The asset class benefited from favorable supply and demand dynamics and improved credit fundamentals amid considerable fiscal stimulus and a quicker-than-expected rebound in state and local government revenues. As a result, municipal bonds generated substantial excess returns versus duration-matched U.S. Treasuries and longer duration and lower credit quality strategies outperformed. Despite broad strength, the market contended with brief periods of volatility surrounding U.S. election uncertainty as well as a temporary valuation-based market correction in late February.

 

Technical support was strong throughout the period as robust demand outpaced supply. During the 12 months ended August 31, 2021, municipal bond funds experienced net inflows totaling $97 billion, with January 2021 producing the largest monthly net inflow on record (based on data from the Investment Company Institute). For the same period, the market absorbed $471 billion in issuance, notably elevated compared to the $452 billion issued during the prior 12-month period. However, taxable

 

        

 

 

S&P Municipal Bond Index

Total Returns as of August 31, 2021

  6 months: 2.50%

12 months: 3.44%

municipal issuance, which typically draws a different and unique buyer base, was proportionally elevated, making supply less onerous on the traditional tax-exempt market.

   

A Closer Look at Yields

 

LOGO

 

From August 31, 2020 to August 31, 2021, yields on AAA-rated 30-year municipal bonds decreased by 4 basis points (“bps”) from 1.56% to 1.52%, while ten-year rates increased by 11 bps from 0.81% to 0.92% and five-year rates increased by 14 bps from 0.26% to 0.40% (as measured by Thomson Municipal Market Data). As a result, the municipal yield curve steepened over the 12-month period with the spread between two- and 30-year maturities steepening by 1 bp, led by 16 bps of steepening between two- and ten-year maturities.

 

Consistent municipal outperformance has resulted in stretched valuations. After dislocating at the height of the pandemic, municipal-to-Treasury ratios posted all-time lows in February and remain well below historical averages.

Financial Conditions of Municipal Issuers

The COVID-19 pandemic has been an unprecedented shock to the system impacting nearly every sector in the municipal market. Fortunately, most states and municipalities were in excellent fiscal health before the crisis, and the federal government delivered another $350 billion injection. Direct state and local government aid has provided additional support to own-source government tax receipts, which continue to outperform the dire predictions made in early 2020. Essential public services such as power, water, and sewer remain protected segments. State housing authority bonds, flagship universities, and strong national and regional health systems have absorbed the impact of the economic shock. While some segments still confront financial pressures, the combination of new federal stimulus and vaccine distribution is boosting economic activity and, consequently, increasing revenue receipts in these sectors as well. Critical providers (safety net hospitals, mass transit systems, airports) with limited resources may still experience fiscal strain but the additional aid and the re-opening of the economy will continue to support operating results in the second half of 2021, despite the surging delta variant of the coronavirus. BlackRock anticipates that a small subset of the market, mainly non-rated stand-alone projects, will remain susceptible to credit deterioration. However, the risk of new mandated lockdowns is significantly diminished, and we expect limited impact on the high fundamental quality of state and local governments as well as essential service providers. While credit fundamentals have improved noticeably across the municipal space, BlackRock advocates careful credit selection as the market must still navigate near-term uncertainty.

The opinions expressed are those of BlackRock as of August 31, 2021 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (“AMT”). Capital gains distributions, if any, are taxable.

The S&P Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

 

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The Benefits and Risks of Leveraging

 

The Trusts may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

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

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

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed a Trust’s return on assets purchased with leverage proceeds, income to shareholders is lower than if a Trust had not used leverage. Furthermore, the value of the Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the amount of each Trust’s obligations under its respective leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Trust’s intended leveraging strategy will be successful.

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

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

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

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

Derivative Financial Instruments

The Trusts may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Trusts’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

H E  E N E F I T S   A N D   R I S K S   O F   L E V E R A G I N G   /   D E R I V A T I V E   F I N A N C I A L   I N S T R U M E N T S

  5


Trust Summary  as of August 31, 2021     BlackRock Municipal Income Quality Trust (BYM)

 

Investment Objective

BlackRock Municipal Income Quality Trust’s (BYM) (the “Trust”) investment objective is to provide current income exempt from U.S. federal income taxes, including the alternative minimum tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its managed assets in municipal bonds exempt from U.S. federal income taxes, including the U.S. federal alternative minimum tax. The Trust also invests at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment. The Trust may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase. The Trust may invest directly in securities or synthetically through the use of derivatives.

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

Trust Information

 

Symbol on New York Stock Exchange

   BYM

Initial Offering Date

         October 31, 2002      

Yield on Closing Market Price as of August 31, 2021 ($16.06)(a)

   4.33%

Tax Equivalent Yield(b)

   7.31%

Current Monthly Distribution per Common Share(c)

   $0.0580

Current Annualized Distribution per Common Share(c)

   $0.6960

Leverage as of August 31, 2021(d)

   37%

 

  (a)

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

 
  (b)

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c)

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

 
  (d)

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

 

Market Price and Net Asset Value Per Share Summary

 

      08/31/21      08/31/20      Change      High      Low  

Closing Market Price

   $ 16.06      $ 14.19        13.18    $   16.29      $   13.90  

Net Asset Value

     15.95        15.57        2.44        16.23        15.34  

 

LOGO

 

  (a) 

Represents the Trust’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b)

A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

 

 

 

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Trust Summary  as of August 31, 2021 (continued)    BlackRock Municipal Income Quality Trust (BYM)

 

Performance Summary for the Period Ended August 31, 2021

Returns for the period ended August 31, 2021 were as follows:

 

        Average Annual Total Returns  
                1 Year        5 Years        10 Years  

Trust at NAV(a)(b)

        7.14      4.49      6.90

Trust at Market Price(a)(b)

        18.36        5.52        7.15  

Lipper General & Insured Municipal Debt Funds (Leveraged) at NAV(c)

        8.97        4.42        6.74  

Lipper General & Insured Municipal Debt Funds (Leveraged) at Market Price(c)

        17.62        5.28        7.27  

S&P® Municipal Bond Index

              3.44        3.24        4.11  

 

  (a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage.

 
  (b)

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

 
  (c)

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

 

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

Past performance is not an indication of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Despite rising yields (and falling prices) for U.S. Treasuries, municipal bonds produced healthy gains in the past 12 months. Tax-exempt bonds continued to rally off of their pandemic-driven lows due to the release of multiple coronavirus vaccines, better-than-expected growth, improving municipal finances and robust investor demand. The prospect of substantial fiscal stimulus and higher taxes were additional tailwinds for the market. These factors led to a decline in yield spreads versus U.S. Treasuries, fueling positive returns for municipal debt.

The Trust’s holdings in bonds with maturities of 20 years and above benefited performance, since longer maturities outperformed shorter-dated issues. The Trust’s use of leverage also helped returns by augmenting income and amplifying the effect of rising prices. The Trust further benefited from its positions in A and BBB rated securities, particularly in the state tax-backed, health care and education sectors. The Trust’s use of U.S. Treasury futures to manage interest rate risk also contributed to results given that U.S. Treasury yields rose.

On the negative side, reinvestment risk continued to be a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to bonds issued when yields were higher.

Despite rising yields (and falling prices) for U.S. Treasuries, municipal bonds produced healthy gains in the past 12 months. Tax-exempt bonds continued to rally off of their pandemic-driven lows due to the release of multiple coronavirus vaccines, better-than-expected growth, improving municipal finances and robust investor demand. The prospect of substantial fiscal stimulus and higher taxes were additional tailwinds for the market. These factors led to a decline in yield spreads versus U.S. Treasuries, fueling positive returns for municipal debt.

The Trust’s holdings in bonds with maturities of 20 years and above benefited performance, since longer maturities outperformed shorter-dated issues. The Trust’s use of leverage also helped returns by augmenting income and amplifying the effect of rising prices. The Trust further benefited from its positions in A and BBB rated securities, particularly in the state tax-backed, health care and education sectors. The Trust’s use of U.S. Treasury futures to manage interest rate risk also contributed to results given that U.S. Treasury yields rose.

On the negative side, reinvestment risk continued to be a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to bonds issued when yields were higher.

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

 

 

T R U S T   S U M M A R Y

  7


Trust Summary  as of August 31, 2021 (continued)    BlackRock Municipal Income Quality Trust (BYM)

 

Overview of the Trust’s Total Investments

 

SECTOR ALLOCATION

 

     
Sector(a)(b)   08/31/21     08/31/20  

County/City/Special District/School District

    28     24

Health

    18       18  

Transportation

    16       21  

State

    11       9  

Education

    8       6  

Utilities

    8       8  

Tobacco

    6       6  

Housing

    2       4  

Corporate

    2       2  

Other

    1       2  

CALL/MATURITY SCHEDULE

 

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2021

    5

2022

    8  

2023

    16  

2024

    6  

2025

    13  

 

CREDIT QUALITY ALLOCATION

 

     
Credit Rating(a)(d)   08/31/21     08/31/20  

AAA/Aaa

    14     12

AA/Aa

    35       37  

A

    24       25  

BBB/Baa

    14       16  

BB/Ba

    3       1  

B

    (e)       

N/R(f)

    10       9  
 

 

(a) 

Excludes short-term securities.

(b)

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

(c)

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

(d)

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

(e)

Rounds to less than 1% of total investments.

(f)

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of August 31, 2021 and August 31, 2020, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 1%, respectively, of the Trust’s total investments.

 

 

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Trust Summary  as of August 31, 2021     BlackRock Municipal Income Trust II (BLE)

 

Investment Objective

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

On June 16, 2020, the Board of Trustees of BlackRock Strategic Municipal Trust (BSD), the Board of Directors of BlackRock MuniYield Investment Quality Fund (MFT), the Board of Trustees of BlackRock Municipal Income Investment Trust (BBF) and the Board of Trustees of BLE each approved the reorganizations of BSD, MFT and BBF into BLE. The reorganizations were approved by each fund’s shareholders and were completed on April 12, 2021.

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

Trust Information

 

Symbol on New York Stock Exchange

   BLE

Initial Offering Date

         July 30, 2002      

Yield on Closing Market Price as of August 31, 2021 ($16.10)(a)

   4.62%

Tax Equivalent Yield(b)

   7.80%

Current Monthly Distribution per Common Share(c)

   $0.0620

Current Annualized Distribution per Common Share(c)

   $0.7440

Leverage as of August 31, 2021(d)

   38%

 

  (a)

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

 
  (b)

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c)

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

 
  (d)

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

 

Market Price and Net Asset Value Per Share Summary

 

      08/31/21      08/31/20      Change      High      Low  

Closing Market Price

   $ 16.10      $ 14.83        8.56    $   16.16      $   14.28  

Net Asset Value

     15.18        14.79        2.64        15.46        14.51  

 

 

LOGO

 

  (a)

Represents the Trust’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

 

 

 

T R U S T   S U M M A R Y

  9


Trust Summary  as of August 31, 2021 (continued)    BlackRock Municipal Income Trust II (BLE)

 

Performance Summary for the Period Ended August 31, 2021

Returns for the period ended August 31, 2021 were as follows:

        Average Annual Total Returns  
                1 Year        5 Years        10 Years  

Trust at NAV(a)(b)

        7.82      4.11      6.95

Trust at Market Price(a)(b)

        14.05        5.05        7.45  

Lipper General & Insured Municipal Debt Funds (Leveraged) at NAV(c)

        8.97        4.42        6.74  

Lipper General & Insured Municipal Debt Funds (Leveraged) at Market Price(c)

        17.62        5.28        7.27  

S&P® Municipal Bond Index

              3.44        3.24        4.11  

 

  (a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage.

 
  (b)

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

 
  (c)

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

 

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

Past performance is not an indication of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Despite rising yields (and falling prices) for U.S. Treasuries, municipal bonds produced healthy gains in the past 12 months. Tax-exempt bonds continued to rally off of their pandemic-driven lows due to the release of multiple coronavirus vaccines, better-than-expected growth, improving municipal finances and robust investor demand. The prospect of substantial fiscal stimulus and higher taxes were additional tailwinds for the market. These factors led to a decline in yield spreads versus U.S. Treasuries, fueling positive returns for municipal debt.

Both income and price appreciation in the broader market played a role in the Trust’s positive total return. Yield curve positioning further aided performance, led by holdings in longer-dated bonds with maturities of 20 years and above. Positions in non-investment grade issues and lower-rated investment-grade bonds (including those rated A and BBB) also helped performance. At the sector level, holdings in the state tax-backed sector led the way. Most notably, lower-rated issuers—including New Jersey, Illinois and Puerto Rico—experienced significant yield spread compression. Allocations to the transportation and health care sectors contributed as well. The Trust’s use of leverage, which enhanced portfolio income and amplified the effect of rising prices, also boosted results.

The Trust used Treasury futures in an effort to manage interest rate risk. This strategy detracted from performance since Treasury yields declined after the strategy was implemented. Reinvestment risk continued to be a headwind given that the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to bonds issued when yields were higher. In addition, holdings in short-duration issues, including pre-refunded securities, underperformed relative to longer-dated maturities. (Duration is a measure of interest-rate sensitivity.)

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

 

 

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Trust Summary  as of August 31, 2021 (continued)    BlackRock Municipal Income Trust II (BLE)

 

Overview of the Trust’s Total Investments

 

 

SECTOR ALLOCATION

 

     
Sector(a)(b)   08/31/21     08/31/20  

Transportation

    25     22

Health

    14       11  

State

    13       12  

County/City/Special District/School District

    12       8  

Utilities

    9       15  

Tobacco

    7       9  

Education

    7       8  

Corporate

    6       8  

Housing

    6       1  

Other

    1       6  

CALL/MATURITY SCHEDULE

 

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2021

    8

2022

    6  

2023

    11  

2024

    6  

2025

    6  

CREDIT QUALITY ALLOCATION

 

     
Credit Rating(a)(d)   08/31/21     08/31/20  

AAA/Aaa

    5     5

AA/Aa

    32       31  

A

    29       23  

BBB/Baa

    17       20  

BB/Ba

    5       7  

B

    1       2  

C

          1  

N/R(e)

    11       11  
 

 

(a) 

Excludes short-term securities.

(b)

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

(c)

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

(d)

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

(e)

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of August 31, 2021 and August 31, 2020, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and 3%, respectively, of the Trust’s total investments.

 

 

T R U S T   S U M M A R Y

  11


Trust Summary  as of August 31, 2021    BlackRock MuniHoldings Investment Quality Fund (MFL)

 

Investment Objective

BlackRock MuniHoldings Investment Quality Fund’s (MFL) (the “Trust”) investment objective is to provide shareholders with current income exempt from U.S. federal income tax and to provide shareholders with the opportunity to own shares the value of which is exempt from Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in long-term, investment grade (as rated or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment) municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Trust may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase. The Trust may invest directly in securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, in September 2008, the Board gave approval to permit the Trust the flexibility to invest in municipal obligations regardless of geographic location since municipal obligations issued by any state or municipality that provides income exempt from regular U.S. federal income tax would now satisfy the foregoing objective and policy.

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

Trust Information

 

Symbol on New York Stock Exchange

   MFL

Initial Offering Date

         September 26, 1997      

Yield on Closing Market Price as of August 31, 2021 ($14.88)(a)

   3.91%

Tax Equivalent Yield(b)

   6.60%

Current Monthly Distribution per Common Share(c)

   $0.0485

Current Annualized Distribution per Common Share(c)

   $0.5820

Leverage as of August 31, 2021(d)

   38%

 

  (a)

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

 
  (b)

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c)

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

 
  (d)

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

 

Market Price and Net Asset Value Per Share Summary

 

      08/31/21      08/31/20      Change      High      Low  

Closing Market Price

   $ 14.88      $ 13.45        10.63    $   15.21      $   13.06  

Net Asset Value

     15.38        14.75        4.27        15.59        14.49  

 

 

LOGO

 

  (a) 

Represents the Trust’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b)

A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

 

 

 

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Trust Summary  as of August 31, 2021 (continued)    BlackRock MuniHoldings Investment Quality Fund (MFL)

 

Performance Summary for the Period Ended August 31, 2021

Returns for the period ended August 31, 2021 were as follows:

 

          Average Annual Total Returns  
            1 Year     5 Years      10 Years  

Trust at NAV(a)(b)

      8.56     4.38      6.63

Trust at Market Price(a)(b)

      15.18       3.69        6.40  

Lipper General & Insured Municipal Debt Funds (Leveraged) at NAV(c)

      8.97       4.42        6.74  

Lipper General & Insured Municipal Debt Funds (Leveraged) at Market Price(c)

      17.62       5.28        7.27  

S&P® Municipal Bond Index

            3.44       3.24        4.11  

 

  (a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage.

 
  (b)

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

 
  (c)

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

 

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

Past performance is not an indication of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Despite rising yields (and falling prices) for U.S. Treasuries, municipal bonds produced healthy gains in the past 12 months. Tax-exempt bonds continued to rally off of their pandemic-driven lows due to the release of multiple coronavirus vaccines, better-than-expected growth, improving municipal finances and robust investor demand. The prospect of substantial fiscal stimulus and higher taxes were additional tailwinds for the market. These factors led to a decline in yield spreads versus U.S. Treasuries, fueling positive returns for municipal debt.

The Trust’s holdings in bonds with maturities of 20 years and above benefited performance, since longer maturities outperformed shorter-dated issues. The Trust’s use of leverage also helped returns by augmenting income and amplifying the effect of rising prices. The Trust further benefited from its positions in A and BBB rated securities, particularly in the state tax-backed, health care and education sectors. The Trust’s use of U.S. Treasury futures to manage interest rate risk also contributed to results given that U.S. Treasury yields rose.

On the negative side, reinvestment risk continued to be a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to bonds issued when yields were higher.

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

 

 

T R U S T   S U M M A R Y

  13


Trust Summary  as of August 31, 2021 (continued)    BlackRock MuniHoldings Investment Quality Fund (MFL)

 

Overview of the Trust’s Total Investments

 

SECTOR ALLOCATION

 

     
Sector(a)(b)   08/31/21     08/31/20  

Transportation

    35     37

State

    20       20  

Health

    14       15  

County/City/Special District/School District

    11       9  

Utilities

    8       6  

Education

    5       6  

Tobacco

    3       3  

Other

    2       2  

Corporate

    1       2  

Housing

    1        

CREDIT QUALITY ALLOCATION

 

     
Credit Rating(a)(d)   08/31/21     08/31/20  

AAA/Aaa

    9     8

AA/Aa

    50       49  

A

    23       27  

BBB/Baa

    8       7  

BB/Ba

    4       3  

N/R

    6 (e)      6  
 

CALL/MATURITY SCHEDULE

 

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2021

    6

2022

    1  

2023

    16  

2024

    4  

2025

    3  
 

 

(a) 

Excludes short-term securities.

(b) 

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

(c) 

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

(d) 

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

(e) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of August 31, 2021, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% of the Trust’s total investments.

 

 

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Trust Summary  as of August 31, 2021     BlackRock MuniVest Fund, Inc. (MVF)

 

Investment Objective

BlackRock MuniVest Fund, Inc.’s (MVF) (the “Trust”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal income taxes as is consistent with its investment policies and prudent investment management. The Trust seeks to achieve its investment objective by investing at least 80% of an aggregate of the Trust’s net assets (including proceeds from the issuance of any preferred shares) and the proceeds of any borrowing for investment purposes, in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Trust primarily invests in long term municipal obligations rated investment grade at the time of investment (or, if unrated, are considered by the Trust’s investment adviser to be of comparable quality at the time of investment) and in long term municipal obligations with maturities of more than ten years at the time of investment. The Trust may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Trust may invest directly in securities or synthetically through the use of derivatives.

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

Trust Information

 

 

Symbol on New York Stock Exchange

   MVF

Initial Offering Date

         September 29, 1988      

Yield on Closing Market Price as of August 31, 2021 ($9.80)(a)

   4.10%

Tax Equivalent Yield(b)

   6.93%

Current Monthly Distribution per Common Share(c)

   $0.0335

Current Annualized Distribution per Common Share(c)

   $0.4020

Leverage as of August 31, 2021(d)

   35%

 

 

  (a)

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

 
  (b)

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c)

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

 
  (d)

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

 

Market Price and Net Asset Value Per Share Summary

 

     08/31/21      08/31/20      Change              High      Low  

Closing Market Price

  $ 9.80      $ 8.77        11.74      $  9.89      $   8.59  

Net Asset Value

    10.08        9.60        5.00        10.22        9.46  

 

 

LOGO

 

  (a) 

Represents the Trust’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

 

 

 

T R U S T   S U M M A R Y

  15


Trust Summary  as of August 31, 2021 (continued)    BlackRock MuniVest Fund, Inc. (MVF)

 

Performance Summary for the Period Ended August 31, 2021

Returns for the period ended August 31, 2021 were as follows:

 

          Average Annual Total Returns  
            1 Year     5 Years      10 Years  

Trust at NAV(a)(b)

      9.62     4.66      6.68

Trust at Market Price(a)(b)

      16.66       3.31        6.18  

Lipper General & Insured Municipal Debt Funds (Leveraged) at NAV(c)

      8.97       4.42        6.74  

Lipper General & Insured Municipal Debt Funds (Leveraged) at Market Price(c)

      17.62       5.28        7.27  

S&P® Municipal Bond Index

            3.44       3.24        4.11  

 

  (a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage.

 
  (b)

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

 
  (c)

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

 

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

Past performance is not an indication of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Despite rising yields (and falling prices) for U.S. Treasuries, municipal bonds produced healthy gains in the past 12 months. Tax-exempt bonds continued to rally off of their pandemic-driven lows due to the release of multiple coronavirus vaccines, better-than-expected growth, improving municipal finances and robust investor demand. The prospect of substantial fiscal stimulus and higher taxes were additional tailwinds for the market. These factors led to a decline in yield spreads versus U.S. Treasuries, fueling positive returns for municipal debt.

The Trust produced a positive return for the period. At the sector level, holdings in the state tax-backed sector—particularly, positions in Puerto Rico, Illinois and New Jersey—were the best performers. Revenue sectors, such as transportation and health care, also contributed positively. The portfolio’s allocation to high-yield bonds, which outpaced the broader market due to tightening credit spreads, further contributed. Positions in longer-maturity bonds (those with maturities of 20 years and above) were also key contributors.

The Trust’s use of leverage helped performance by augmenting income and amplifying the effect of rising prices. The Trust’s use of U.S. Treasury futures to manage interest rate risk also contributed to results given that U.S. Treasury yields rose.

Reinvestment risk continued to be a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to bonds that were issued when yields were higher.

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

 

 

16  

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Trust Summary  as of August 31, 2021 (continued)    BlackRock MuniVest Fund, Inc. (MVF)

 

Overview of the Trust’s Total Investments

 

SECTOR ALLOCATION

 

     
Sector(a)(b)   08/31/21     08/31/20  

Transportation

    28     27

Health

    21       19  

State

    12       9  

County/City/Special District/School District

    10       9  

Utilities

    8       10  

Corporate

    7       8  

Tobacco

    6       7  

Education

    5       4  

Housing

    3       3  

Other

          4  

CREDIT QUALITY ALLOCATION

 

     
Credit Rating(a)(d)   08/31/21     08/31/20  

AAA/Aaa

    %(e)     

AA/Aa

    34       30  

A

    28       30  

BBB/Baa

    19       22  

BB/Ba

    5       4  

B

    2       3  

C

          1  

N/R(f)

    12       10  
 

 

CALL/MATURITY SCHEDULE

 

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2021

    5

2022

    6  

2023

    6  

2024

    4  

2025

    7  
 

 

(a) 

Excludes short-term securities.

(b) 

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

(c) 

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

(d) 

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

(e) 

Rounds to less than 1% of total investments.

(f) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of August 31, 2021 and August 31, 2020, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and 2%, respectively, of the Trust’s total investments.

 

 

T R U S T   S U M M A R Y

  17


Schedule of Investments  

August 31, 2021

  

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

 

Alabama — 0.3%  

City of Birmingham Alabama, GO, CAB, Series A-1, 5.00%, 03/01/45

  $ 1,165     $ 1,344,969  
   

 

 

 
Alaska — 0.3%  

Alaska Industrial Development & Export Authority, RB, Series A, 5.50%, 10/01/41

    1,070       1,074,483  
   

 

 

 
Arizona(a) — 1.3%  

Arizona Industrial Development Authority, RB 4.38%, 07/01/39

    725       800,291  

Series A, 5.00%, 07/01/39

    610       648,070  

Series A, 5.00%, 07/01/49

    690       725,411  

Series A, 5.00%, 07/01/54

    530       555,552  

Industrial Development Authority of the County of Pima, RB, 5.00%, 06/15/47

    1,065       1,084,383  

Industrial Development Authority of the County of Pima, Refunding RB, 5.00%, 06/15/52

    595       626,648  

Maricopa County Industrial Development Authority, Refunding RB

   

5.00%, 07/01/39

    255       304,944  

5.00%, 07/01/54

    590       680,860  
   

 

 

 
      5,426,159  
California — 12.5%  

California Community Housing Agency, RB, M/F Housing(a)

   

Series A, 5.00%, 04/01/49

    265       301,665  

Series A-2, 4.00%, 08/01/47

    1,715       1,874,015  

California Health Facilities Financing Authority, Refunding RB, Sub-Series A-2, 5.00%, 11/01/47

    1,465       2,206,290  

California Infrastructure & Economic Development Bank, RB, Series A, 1st Lien, (AMBAC),
5.00%, 01/01/28(b)

    10,100       12,915,173  

California State Public Works Board, RB, Series I, 5.50%, 11/01/33

    1,415       1,573,140  

California Statewide Communities Development Authority, RB, Series A, 5.00%, 04/01/42

    1,620       1,663,335  

California Statewide Communities Development Authority, Refunding RB, 4.00%, 03/01/48

    3,175       3,618,801  

Golden State Tobacco Securitization Corp., Refunding RB

   

Series A-1, 5.00%, 06/01/47

    2,060       2,128,392  

Series A-2, 5.00%, 06/01/47

    565       583,730  

Mount San Antonio Community College District, Refunding GO, CAB, Series A, Convertible, 6.25%, 08/01/43(c)

    1,580       1,865,048  

Riverside County Redevelopment Successor Agency, Refunding TA, Series A, (BAM),
4.00%, 10/01/39

    3,700       4,283,564  

San Diego Unified School District, GO, CAB(d)

   

Series K-2, 0.00%, 07/01/38

    1,745       1,031,330  

Series K-2, 0.00%, 07/01/39

    2,115       1,196,477  

Series K-2, 0.00%, 07/01/40

    2,715       1,469,385  

Series C, Election 2008, 0.00%, 07/01/38

    2,000       1,447,900  

Series G, Election 2008, 0.00%, 01/01/24(b)

    3,425       1,770,791  

San Diego Unified School District, Refunding GO, CAB, Series R-1, 0.00%, 07/01/31(d)

    1,400       1,214,794  

State of California, GO, 5.00%, 04/01/42

    3,000       3,082,050  
Security   Par
(000)
    Value  
California (continued)  

State of California, Refunding GO, 5.00%, 10/01/41

  $ 1,100     $ 1,104,224  

Yosemite Community College District, GO, Series D, Election 2004, 0.00%, 08/01/37(d)

    10,000       7,291,300  
   

 

 

 
      52,621,404  
Colorado — 0.6%  

Regional Transportation District, COP, Series A, 5.00%, 06/01/39

    1,305       1,406,490  

Sabell Metropolitan District, GO, Series A,
5.00%, 12/01/50(a)

    1,055       1,156,185  
   

 

 

 
      2,562,675  
Connecticut — 0.7%  

State of Connecticut, Refunding GO, Series E, 5.00%, 09/15/37

    2,280       2,862,677  
   

 

 

 
Delaware — 0.8%  

County of Kent Delaware, RB

   

Series A, 5.00%, 07/01/40

    770       880,556  

Series A, 5.00%, 07/01/48

    2,110       2,380,903  
   

 

 

 
      3,261,459  
District of Columbia — 2.3%  

District of Columbia Tobacco Settlement Financing Corp., Refunding RB, 6.75%, 05/15/40

    9,500       9,794,880  
   

 

 

 
Florida — 4.5%  

Brevard County Health Facilities Authority, Refunding RB, 5.00%, 04/01/39

    1,795       1,983,152  

Capital Trust Agency, Inc., RB, Series A,
5.00%, 06/01/45(a)

    615       656,156  

County of Miami-Dade Seaport Department, ARB, Series A, 6.00%, 10/01/23(b)

    2,770       3,105,280  

Florida Development Finance Corp., Refunding RB, 5.00%, 09/15/40(a)

    340       383,136  

Miami-Dade County Educational Facilities Authority, Refunding RB, Series A, 5.00%, 04/01/40

    3,910       4,473,079  

Miami-Dade County Health Facilities Authority, Refunding RB, 5.00%, 08/01/42

    685       823,322  

Orange County Health Facilities Authority, Refunding RB

   

5.00%, 08/01/41

    630       693,875  

5.00%, 08/01/47

    1,845       2,027,729  

Preserve at South Branch Community Development District, SAB

   

4.00%, 11/01/39

    300       318,630  

4.00%, 11/01/50

    500       521,825  

Reedy Creek Improvement District, GO, Series A, 5.25%, 06/01/23(b)

    1,340       1,459,086  

Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/21(b)

    2,000       2,008,260  

Westside Community Development District, Refunding SAB(a)

   

4.10%, 05/01/37

    260       278,559  

4.13%, 05/01/38

    260       278,247  
   

 

 

 
      19,010,336  
Georgia — 1.6%  

Gainesville & Hall County Hospital Authority, Refunding RB, Series A, (GTD),
5.50%, 02/15/25(b)

    545       630,985  

Georgia Housing & Finance Authority, RB, S/F Housing

   

Series A, 3.95%, 12/01/43

    275       290,043  

Series A, 4.00%, 12/01/48

    410       430,734  
 

 

 

18  

2 0 2 1   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Georgia (continued)            

Main Street Natural Gas Inc RB, Series C,
4.00%, 05/01/52(e)(f)

  $   2,385     $ 2,856,085  

Main Street Natural Gas, Inc., RB

   

Series A, 5.00%, 05/15/38

    595       862,762  

Series A, 5.00%, 05/15/43

    775       944,841  

Private Colleges & Universities Authority, RB
5.00%, 04/01/33

    155       172,524  

5.00%, 04/01/44

    595       657,463  
   

 

 

 
      6,845,437  
Illinois — 16.1%            

Chicago Board of Education, GO

   

Series A, 5.00%, 12/01/36

    1,265       1,619,567  

Series A, 5.00%, 12/01/38

    515       656,228  

Series A, 5.00%, 12/01/39

    450       572,400  

Series A, 5.00%, 12/01/40

    940       1,192,531  

Series A, 5.00%, 12/01/41

    605       765,839  

Chicago O’Hare International Airport, ARB, Series D, Senior Lien, 5.25%, 01/01/42

    3,300       4,005,408  

Chicago O’Hare International Airport, Refunding ARB, Series D, Senior Lien, 5.25%, 01/01/34

    9,800       10,443,272  

Chicago Transit Authority Sales Tax Receipts Fund, RB
5.25%, 12/01/21(b)

    650       657,976  

5.25%, 12/01/49

    3,500       3,997,455  

Cook County Community College District No. 508, GO 5.13%, 12/01/38

    7,700       8,326,549  

5.50%, 12/01/38

    1,000       1,089,530  

Cook County Forest Preserve District, Refunding GO, Series B, 5.00%, 12/15/37

    210       217,642  

County of Will Illinois, GO, 5.00%, 11/15/25(b)

    1,400       1,672,328  

Illinois Finance Authority, RB

   

Series A, 5.00%, 02/15/47

    565       632,958  

Series A, 5.00%, 02/15/50

    310       346,369  

Illinois Finance Authority, Refunding RB

   

Series A, 5.00%, 11/15/45

    2,815       3,273,563  

Series B, 4.00%, 08/15/41

    900       1,013,841  

Series C, 4.13%, 08/15/37

    3,130       3,510,232  

Series C, 5.00%, 08/15/44

    390       450,977  

Illinois State Toll Highway Authority, RB, Series A,
5.00%, 01/01/40

    7,020       8,140,252  

Metropolitan Pier & Exposition Authority, RB, Series A, 5.00%, 06/15/57

    670       794,325  

Metropolitan Pier & Exposition Authority, Refunding RB, 4.00%, 06/15/50

    515       584,896  

State of Illinois, GO 5.25%, 07/01/29

    8,345       9,012,683  

5.50%, 07/01/33

    880       949,705  

5.50%, 07/01/38

    1,475       1,586,230  

5.50%, 05/01/39

    1,840       2,369,607  
   

 

 

 
      67,882,363  
Indiana — 0.3%            

Indiana Finance Authority, Refunding RB, Series A, 1st Lien, 5.25%, 10/01/38

    1,100       1,104,554  
   

 

 

 
Iowa — 0.8%            

Iowa Finance Authority, RB, 5.50%, 07/01/23(b)

    3,000       3,290,250  
   

 

 

 
Security   Par
(000)
    Value  
Maryland — 3.2%            

County of Montgomery Maryland, RB,
4.00%, 12/01/44

  $   1,810     $ 1,987,887  

Maryland Health & Higher Educational Facilities

   

Authority, RB, 4.00%, 07/01/48

    4,000       4,412,560  

State of Maryland GO, 5.00%, 08/01/31

    5,000       6,909,300  
   

 

 

 
      13,309,747  
Massachusetts — 3.0%            

Massachusetts Development Finance Agency, RB
5.00%, 01/01/48

    2,595       3,112,625  

5.00%, 10/01/48

    1,970       2,260,141  

Series A, 5.00%, 01/01/47

    2,370       2,771,454  

Massachusetts Development Finance Agency, Refunding RB
5.00%, 07/01/37

    190       218,158  

5.00%, 09/01/43

    1,750       2,095,152  

Series A, 4.00%, 06/01/49

    185       210,199  

Massachusetts Housing Finance Agency, RB, M/F

   

Housing, Series A, 3.85%, 06/01/46

    490       531,327  

Massachusetts School Building Authority, RB, Series A, 5.00%, 05/15/23(b)

    1,395       1,510,311  
   

 

 

 
      12,709,367  
Michigan — 6.6%            

Michigan Finance Authority, RB, Series S,
5.00%, 11/01/44

    3,640       4,253,340  

Michigan Finance Authority, Refunding RB
5.00%, 12/01/21(b)

    9,050       9,160,229  

5.00%, 11/15/41

    2,235       2,676,010  

Michigan State Building Authority, Refunding RB(b)

   

Series I-A, 5.38%, 10/15/21

    2,800       2,817,724  

Series II-A, 5.38%, 10/15/21

    1,500       1,509,495  

Michigan State Hospital Finance Authority, Refunding

   

RB, 5.00%, 11/15/47

    500       628,345  

Michigan State Housing Development Authority, RB,

   

M/F Housing, Series A, 3.80%, 10/01/38

    3,965       4,395,044  

Royal Oak Hospital Finance Authority, Refunding RB,

   

Series D, 5.00%, 09/01/39

    1,560       1,731,257  

Western Michigan University, Refunding RB, (AGM), 5.00%, 11/15/23(b)

    430       475,765  
   

 

 

 
      27,647,209  
Minnesota — 0.4%            

City of Minneapolis Minnesota, Refunding RB, Series A, 5.00%, 11/15/49

    1,315       1,625,143  
   

 

 

 
Nebraska — 1.6%            

Central Plains Energy Project, RB, 5.25%, 09/01/37

    6,345       6,663,075  
   

 

 

 
Nevada — 0.8%            

City of Las Vegas Nevada Special Improvement District No. 611, SAB
4.00%, 06/01/40

    450       486,805  

4.13%, 06/01/50

    1,150       1,227,073  

Tahoe-Douglas Visitors Authority, RB
5.00%, 07/01/40

    360       423,184  

5.00%, 07/01/45

    450       521,505  

5.00%, 07/01/51

    480       550,392  
   

 

 

 
      3,208,959  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  19


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Hampshire — 0.1%            

New Hampshire Business Finance Authority, Refunding RB, Series A, 3.63%, 07/01/43(a)(e)

  $ 550     $ 581,504  
   

 

 

 
New Jersey — 7.8%            

New Jersey Economic Development Authority, RB

   

Series DDD, 5.00%, 06/15/42

    375       451,320  

Series WW, 5.25%, 06/15/25(b)

    20       23,722  

Series WW, 5.25%, 06/15/33

    170       198,604  

Series WW, 5.00%, 06/15/34

    225       260,539  

Series WW, 5.00%, 06/15/36

    1,395       1,612,536  

Series WW, 5.25%, 06/15/40

    380       439,557  

New Jersey Economic Development Authority,

   

Refunding RB, Sub-Series A, 4.00%, 07/01/32

    930       1,048,770  

New Jersey Health Care Facilities Financing Authority, Refunding RB, 5.00%, 10/01/37

    1,605       1,928,456  

New Jersey Transportation Trust Fund Authority, RB

   

Series AA, 5.25%, 06/15/33

    1,660       1,802,279  

Series AA, 5.00%, 06/15/36

    5,070       5,474,992  

Series AA, 5.00%, 06/15/38

    945       1,056,227  

Series AA, 5.50%, 06/15/39

    3,785       4,114,560  

Series D, 5.00%, 06/15/32

    900       1,028,079  

Series S, 5.25%, 06/15/43

    2,150       2,720,352  

New Jersey Transportation Trust Fund Authority, RB,

   

CAB, Series A, 0.00%, 12/15/38(d)

    5,845       3,893,881  

New Jersey Transportation Trust Fund Authority,

   

Refunding RB, Series A, 5.00%, 12/15/36

    340       421,954  

South Jersey Port Corp., ARB, Series A,
5.00%, 01/01/49

    720       858,557  

Tobacco Settlement Financing Corp., Refunding RB

   

Series A, 5.00%, 06/01/35

    1,750       2,177,052  

Series A, 5.25%, 06/01/46

    1,725       2,100,532  

Sub-Series B, 5.00%, 06/01/46

    1,130       1,343,988  
   

 

 

 
      32,955,957  
New Mexico — 0.2%            

City of Santa Fe New Mexico, RB, Series A,
5.00%, 05/15/49

    220       244,552  

New Mexico Hospital Equipment Loan Council,

   

Refunding RB, Series VIC, 5.00%, 08/01/44

    405       467,759  
   

 

 

 
      712,311  
New York — 5.3%            

Metropolitan Transportation Authority, Refunding RB

   

Series C-1, 5.25%, 11/15/55

    1,135       1,407,514  

Series C-1, 5.00%, 11/15/56

    1,690       1,975,762  

New York City Transitional Finance Authority Future Tax Secured Revenue Refunding RB, 4.00%, 11/01/37

    8,000       9,812,880  

New York City Transitional Finance Authority Future Tax Secured Revenue, Refunding RB, Series B, 5.00%, 11/01/32

    1,650       1,742,317  

New York City Water & Sewer System, Refunding RB, Series BB, 4.00%, 06/15/47

    2,855       2,982,247  

New York Liberty Development Corp., Refunding RB, Series 1, Class 1, 5.00%, 11/15/44(a)

    1,240       1,383,728  

State of New York Mortgage Agency, Refunding RB, S/F Housing, Series 211, 3.75%, 10/01/43

    2,810       3,007,712  
   

 

 

 
      22,312,160  
Ohio — 4.2%            

Buckeye Tobacco Settlement Financing Authority,

   

Refunding RB

   

Series A-2, Class 1, 3.00%, 06/01/48

    3,495       3,610,125  
Security   Par
(000)
    Value  
Ohio (continued)            

Buckeye Tobacco Settlement Financing Authority,

   

Refunding RB (continued)

   

Series B-2, Class 2, 5.00%, 06/01/55

  $   5,430     $ 6,309,552  

County of Lucas Ohio, Refunding RB, Series A, 6.50%, 11/15/21(b)

    610       617,936  

Northwest Local School District/Hamilton & Butler

   

Counties, GO, 4.00%, 12/01/50

    2,645       2,803,198  

Ohio Turnpike & Infrastructure Commission, RB

   

Series A-1, Junior Lien, 5.25%, 02/15/32

    780       837,392  

Series A-1, Junior Lien, 5.25%, 02/15/33

    1,095       1,175,307  

State of Ohio, Refunding RB, Series A,
5.00%, 01/15/41

    2,500       2,542,250  
   

 

 

 
      17,895,760  
Oregon — 0.4%            

Clackamas County School District No.12 North

   

Clackamas, GO, CAB, Series A, (GTD), 0.00%, 06/15/38(d)

    1,115       625,002  

Washington & Multnomah Counties School District No. 48J Beaverton, GO, CAB, Series D, (GTD), 5.00%, 06/15/36

    945       1,170,401  
   

 

 

 
      1,795,403  
Pennsylvania — 5.0%            

Bucks County Industrial Development Authority, RB 4.00%, 07/01/46

    105       118,390  

4.00%, 07/01/51

    100       112,042  

Commonwealth Financing Authority, RB
5.00%, 06/01/33

    790       981,970  

5.00%, 06/01/34

    1,750       2,170,717  

(AGM), 4.00%, 06/01/39

    3,230       3,704,164  

Montgomery County Higher Education and Health

   

Authority, Refunding RB, Series A,
4.00%, 09/01/49

    1,145       1,277,728  

Pennsylvania Higher Educational Facilities Authority,

   

Refunding RB, Series A, 5.25%, 09/01/50

    4,245       4,860,058  

Pennsylvania Turnpike Commission, RB

   

Series A, 5.00%, 12/01/38

    695       792,905  

Series A-1, 5.00%, 12/01/41

    2,730       3,237,780  

Series B, 5.00%, 12/01/40

    1,060       1,242,977  

Series C, 5.50%, 12/01/23(b)

    630       704,479  

Pennsylvania Turnpike Commission, Refunding RB
2nd Series, 5.00%, 12/01/35

    860       1,063,149  

Series A-1, 5.00%, 12/01/40

    850       984,428  
   

 

 

 
      21,250,787  
Puerto Rico — 4.6%            

Puerto Rico Sales Tax Financing Corp. Sales Tax

   

Revenue, RB

   

Series A-1, Restructured, 4.75%, 07/01/53

    5,112       5,851,655  

Series A-1, Restructured, 5.00%, 07/01/58

    6,950       8,032,463  

Series A-2, Restructured, 4.33%, 07/01/40

    1,688       1,907,676  

Series A-2, Restructured, 4.78%, 07/01/58

    349       399,096  

Series B-1, Restructured, 4.75%, 07/01/53

    536       613,061  

Series B-2, Restructured, 4.78%, 07/01/58

    520       594,266  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(d)

    6,308       2,098,104  
   

 

 

 
      19,496,321  
Rhode Island — 1.5%            

Tobacco Settlement Financing Corp., Refunding RB,

   

Series B, 4.50%, 06/01/45

    5,855       6,358,881  
   

 

 

 
 

 

 

20  

2 0 2 1   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
South Carolina — 4.9%  

South Carolina Jobs-Economic Development Authority, RB, 5.00%, 01/01/55(a)

  $ 1,095     $ 1,156,035  

South Carolina Public Service Authority, RB

   

Series A, 5.50%, 12/01/54

    6,960       7,818,586  

Series E, 5.50%, 12/01/53

    1,610       1,774,590  

South Carolina Public Service Authority, Refunding RB

   

Series B, 5.00%, 12/01/38

    2,360       2,589,392  

Series B, (AGM-CR), 5.00%, 12/01/56

    2,845       3,359,149  

Spartanburg Regional Health Services District,
Refunding RB, Series A, 4.00%, 04/15/43

    3,500       3,979,920  
   

 

 

 
      20,677,672  
South Dakota — 0.5%            

City of Rapid City South Dakota Sales Tax Revenue, RB, 4.00%, 12/01/26(b)

    1,760       2,083,154  
   

 

 

 
Tennessee — 0.0%            

Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, RB, Series A, 5.00%, 07/01/40

    35       41,351  
   

 

 

 
Texas — 13.5%            

City of San Antonio Texas Electric & Gas Systems
Revenue, RB, Junior Lien, 5.00%, 02/01/23(b)

    615       657,355  

Coppell Independent School District, Refunding GO, (PSF), 0.00%, 08/15/30(d)

    10,030       8,844,354  

County of Harris Texas, Refunding GO(d)

   

(NPFGC), 0.00%, 08/15/25

    7,485       7,316,962  

(NPFGC), 0.00%, 08/15/28

    10,915       10,106,089  

Dallas Fort Worth International Airport, Refunding RB, Series F, 5.25%, 11/01/33

    1,090       1,206,009  

Grand Parkway Transportation Corp., RB, CAB,
Series B, Convertible, 5.80%, 10/01/46(c)

    2,365       2,774,216  

Harris County-Houston Sports Authority, Refunding RB(d)

   

Series A, 3rd Lien, (NPFGC), 0.00%, 11/15/24(b)

    5,965       2,569,483  

Series A, 3rd Lien, (NPFGC), 0.00%, 11/15/38

    10,925       4,368,143  

Harris County-Houston Sports Authority, Refunding RB, CAB(d)

   

Series H, Junior Lien, (NPFGC), 0.00%, 11/15/38

    5,785       2,697,140  

Series H, Junior Lien, (NPFGC), 0.00%, 11/15/39

    6,160       2,689,333  

Leander Independent School District, Refunding GO, CAB, Series D, (PSF), 0.00%, 08/15/24(b)(d)

    3,775       1,908,904  

Midland County Fresh Water Supply District No.1, RB, CAB, Series A, 0.00%, 09/15/36(d)

    2,340       1,371,825  

New Hope Cultural Education Facilities Finance Corp., RB, Series A, 5.00%, 08/15/50(a)

    580       629,213  

North Texas Tollway Authority, RB, Series A,
6.00%, 09/01/21(b)

    1,000       1,000,000  

North Texas Tollway Authority, RB, CAB(b)

   

Series B, 0.00%, 09/01/31(d)

    1,975       1,078,172  

Series C, 6.75%, 09/01/31

    2,500       3,764,675  

North Texas Tollway Authority, Refunding RB, Series B, 5.00%, 01/01/40

    385       407,992  

San Antonio Public Facilities Corp., Refunding RB,
4.00%, 09/15/42

    3,155       3,254,982  

Texas City Industrial Development Corp., RB,
Series 2012, 4.13%, 12/01/45

    330       357,674  
   

 

 

 
      57,002,521  
Security   Par
(000)
    Value  
Utah — 0.8%  

City of Salt Lake City Utah Airport Revenue, ARB,
Series B, 5.00%, 07/01/43

  $   2,100     $ 2,592,387  

Utah Charter School Finance Authority, RB, Series A,
5.00%, 06/15/49(a)

    235       250,611  

Utah Charter School Finance Authority, Refunding RB, 5.00%, 06/15/55(a)

    450       510,736  
   

 

 

 
      3,353,734  
Virginia — 0.8%            

Virginia Beach Development Authority, Refunding RB

   

5.00%, 09/01/44

    1,375       1,571,776  

4.00%, 09/01/48

    885       958,597  

Virginia Housing Development Authority, RB, M/F
Housing, Series B, 4.00%, 06/01/53

    895       969,446  
   

 

 

 
      3,499,819  
Washington — 0.9%            

Washington Health Care Facilities Authority, RB,
Series B, 5.00%, 08/15/44

    2,000       2,084,240  

Washington State Housing Finance Commission,
Refunding RB, 5.00%, 01/01/38(a)

    1,400       1,659,448  
   

 

 

 
      3,743,688  
West Virginia — 1.1%            

West Virginia Hospital Finance Authority, RB, Series A, 4.00%, 06/01/51

    3,050       3,371,195  

West Virginia Parkways Authority, RB

   

Senior Lien, 5.00%, 06/01/47

    425       548,684  

Senior Lien, 4.00%, 06/01/51

    500       593,430  
   

 

 

 
      4,513,309  
Wisconsin — 2.8%            

Public Finance Authority, RB(a)

   

Series A, 5.00%, 07/15/39

    120       136,356  

Series A, 5.00%, 10/15/40

    1,260       1,404,131  

Series A, 5.00%, 07/15/49

    455       506,160  

Series A, 5.00%, 07/15/54

    215       237,584  

Series A, 5.00%, 07/01/55

    395       431,494  

Series A-1, 4.50%, 01/01/35

    685       783,366  

Public Finance Authority, Refunding RB,
5.00%, 09/01/39(a)

    375       408,570  

Wisconsin Health & Educational Facilities Authority,
Refunding RB

    1,895       2,379,969  

5.00%, 04/01/44

   

Sereis C, 4.00%, 02/15/42

    5,000       5,622,150  
   

 

 

 
      11,909,780  
   

 

 

 
Total Municipal Bonds — 112.1%            

(Cost: $415,645,208)

      472,429,258  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(g)

 

California — 1.0%            

Los Angeles Unified School District, GO, Series B-1,
5.25%, 07/01/42(h)

    3,432       4,292,147  
   

 

 

 
Colorado — 1.4%            

Colorado Health Facilities Authority, Refunding RB,
Series A, 5.00%, 08/01/44(h)

    4,605       5,758,460  
   

 

 

 
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  21


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Connecticut — 0.4%            

Connecticut State Health & Educational Facilities
Authority, Refunding RB, 5.00%, 12/01/45

  $ 1,561     $ 1,850,170  
   

 

 

 
Florida — 1.4%            

City of Miami Beach Florida, RB, 5.00%, 09/01/45

    3,500       4,045,370  

County of Miami-Dade Florida Transit System,
Refunding RB, 5.00%, 07/01/22(b)

    1,950       2,029,053  
   

 

 

 
      6,074,423  
Illinois — 3.8%            

Illinois State Toll Highway Authority, RB

   

Series A, 5.00%, 01/01/38

    7,714       8,182,131  

Series A, 5.00%, 01/01/40

    3,045       3,531,496  

Series B, 5.00%, 01/01/40

    1,170       1,377,545  

Series C, 5.00%, 01/01/38

    2,658       3,035,983  
   

 

 

 
      16,127,155  
Kansas — 1.6%            

Wyandotte County Unified School District No.
500 Kansas City, GO, Series A,
5.50%, 09/01/26(b)

    5,363       6,698,907  
   

 

 

 
Maryland — 0.9%            

City of Baltimore Maryland, RB, Series A,
5.00%, 07/01/41

    3,139       3,791,181  
   

 

 

 
Massachusetts — 4.7%            

Commonwealth of Massachusetts, GO, Series A,
5.00%, 03/01/46

    1,662       1,843,266  

Massachusetts Development Finance Agency, RB,
4.00%, 09/01/49

    5,500       5,685,735  

Massachusetts Development Finance Agency,
Refunding RB, 4.00%, 07/01/35

    7,070       8,283,778  

Massachusetts School Building Authority, RB, Series B, 5.00%, 11/15/46(h)

    3,300       4,029,993  
   

 

 

 
      19,842,772  
Michigan — 1.0%            

Michigan Finance Authority, RB, Series A,
5.00%, 11/01/44

    2,221       2,594,605  

Michigan State Building Authority, Refunding RB,
Series I, 5.00%, 10/15/45

    960       1,123,507  

Michigan State Housing Development Authority, RB, S/F Housing, Series C, 3.90%, 12/01/33

    495       546,957  
   

 

 

 
      4,265,069  
Nevada — 1.1%            

Las Vegas Valley Water District, Refunding GO,
Series A, 5.00%, 06/01/46

    3,900       4,624,308  
   

 

 

 
New Jersey — 0.3%            

Hudson County Improvement Authority, RB,
5.25%, 05/01/51

    920       1,096,382  
   

 

 

 
New York — 10.8%            

Metropolitan Transportation Authority, RB, Sub-
Series D-1, 5.25%, 11/15/44

    3,850       4,364,321  

New York City Transitional Finance Authority Future Tax Secured Revenue, Refunding RB, Series B, 5.00%, 11/01/30

    12,500       13,203,625  
Security   Par
(000)
    Value  
New York (continued)            

New York City Water & Sewer System, Refunding RB

   

Series CC, 5.00%, 06/15/23(b)

  $   2,933     $ 3,173,130  

Series CC, 5.00%, 06/15/47

    3,307       3,578,647  

Series DD, 5.00%, 06/15/35

    1,845       2,079,057  

Series FF, 5.00%, 06/15/39

    8,355       9,723,967  

New York State Urban Development Corp., RB,
Series A-1, 5.00%, 03/15/43

    5,720       6,117,597  

Port Authority of New York & New Jersey, Refunding
ARB, Consolidated, 198th Series, 5.25%, 11/15/56

    2,561       3,106,766  
   

 

 

 
      45,347,110  
North Carolina — 1.3%            

Durham Capital Financing Corp, Refunding RB, 4.00%, 06/01/23(b)

    5,125       5,470,989  
   

 

 

 
Pennsylvania — 1.7%            

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    4,997       6,151,213  

Westmoreland County Municipal Authority, Refunding
RB, (BAM), 5.00%, 08/15/42

    1,020       1,178,233  
   

 

 

 
      7,329,446  
Texas — 6.1%            

El Paso Independent School District, GO, (PSF-GTD), 4.00%, 08/15/48

    7,001       8,190,003  

Houston Community College System, GO,
4.00%, 02/15/23(b)

    7,002       7,395,193  

San Antonio Water System, Refunding RB, Series C,
Junior Lien, 5.00%, 05/15/46

    3,750       4,522,350  

Tarrant County Cultural Education Facilities Finance
Corp., RB, Series A, 5.00%, 05/15/23(b)

    719       778,946  

Tarrant County Cultural Education Facilities Finance
Corp., Refunding RB, Series A, 5.00%, 02/15/41

    3,920       4,708,861  
   

 

 

 
      25,595,353  
Virginia — 1.8%            

Hampton Roads Transportation Accountability
Commission, RB, Series A, Senior Lien,
5.00%, 07/01/48

    1,996       2,418,599  

Virginia Small Business Financing Authority, Refunding RB, Series A, 4.00%, 12/01/49

    4,305       4,998,105  
   

 

 

 
      7,416,704  
Washington — 3.1%            

Washington Health Care Facilities Authority, Refunding RB, Series A, 5.00%, 10/01/38

    3,210       4,125,139  

Washington State Convention Center Public Facilities District, RB, 5.00%, 07/01/58

    7,002       8,806,343  
   

 

 

 
      12,931,482  
 

 

 

22  

2 0 2 1   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

 

 
Wisconsin — 0.9%  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Series A, 5.00%, 04/01/42

  $ 3,520     $ 3,691,142  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 43.3%
(Cost: $168,804,658)

      182,203,200  
   

 

 

 

Total Long-Term Investments — 155.4%
(Cost: $584,449,866)

      654,632,458  
   

 

 

 
    Shares        

 

 

Short-Term Securities

   
Money Market Funds — 1.5%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.01%(i)(j)

    6,326,118       6,327,383  
   

 

 

 

Total Short-Term Securities — 1.5%
(Cost: $6,327,213)

 

    6,327,383  
   

 

 

 

Total Investments — 156.9%
(Cost: $590,777,079)

      660,959,841  

Other Assets Less Liabilities — 1.2%

      4,867,861  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (25.5)%

      (107,382,963

VMTP Shares at Liquidation Value — (32.6)%

 

    (137,200,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 421,244,739  
   

 

 

 

 

(a)

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

(b)

U.S. Government securities held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(c) 

Step coupon security. Coupon rate will either increase (step-up bond) or decrease (step-down bond) at regular intervals until maturity. Interest rate shown reflects the rate currently in effect.

(d) 

Zero-coupon bond.

(e) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(f) 

When-issued security.

(g) 

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

(h) 

All or a portion of the 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 November 15, 2024 to August 1, 2027, is $8,125,715 See Note 4 of the Notes to Financial Statements for details.

(i) 

Affiliate of the Trust.

(j) 

Annualized 7-day yield as of period end.

 

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Trust during the year ended August 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
08/31/20
    Purchases
at Cost
    Proceeds
from Sales
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
08/31/21
   

Shares

Held at
08/31/21

    Income     Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

  $ 466,483     $ 5,860,955 (a)    $     $ (225   $ 170     $ 6,327,383       6,326,118     $ 765     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a)

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount (000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts
10-Year U.S. Treasury Note

     50        12/21/21      $ 6,670      $ 1,655  

U.S. Long Bond

     27        12/21/21        4,404        (3,413

5-Year U.S. Treasury Note

     41        12/31/21        5,072        (54
           

 

 

 
            $ (1,812
           

 

 

 

 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  23


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Quality Trust (BYM)

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 1,655      $      $ 1,655  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $      $      $ 3,467      $      $ 3,467  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended August 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $  1,071,784      $      $  1,071,784  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ (1,812    $      $ (1,812
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:

       

Average notional value of contracts — short

  $ 15,259,311  

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

Fair Value Hierarchy as of Period End

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

The following table summarizes the Trust’s financial instruments categorized in the fair value hierarchy. The breakdown of the Trust’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Municipal Bonds

   $        $ 472,429,258        $        $ 472,429,258  

Municipal Bonds Transferred to Tender Option Bond Trusts

              182,203,200                   182,203,200  

Short-Term Securities

                 

Money Market Funds

     6,327,383                            6,327,383  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $       6,327,383        $  654,632,458        $        $  660,959,841  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Interest Rate Contracts

   $ 1,655        $        $        $ 1,655  

Liabilities

                 

Interest Rate Contracts

     (3,467                          (3,467
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ (1,812      $        $                 —        $ (1,812
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

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

 

 

 

24  

2 0 2 1   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Quality Trust (BYM)

 

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

 

      Level 1        Level 2        Level 3        Total  

Liabilities

                 

TOB Trust Certificates

   $        $ (107,357,713      $        $ (107,357,713

VMTP Shares at Liquidation Value

              (137,200,000                 (137,200,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $                 —        $ (244,557,713      $                 —        $ (244,557,713
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  25


Schedule of Investments

August 31, 2021

  

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Municipal Bonds

   

Alabama — 2.4%

   

County of Jefferson Alabama Sewer Revenue, Refunding RB

   

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

  $ 540     $ 594,686  

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

    1,320       1,457,874  

Series D, Sub Lien, 7.00%, 10/01/51

    4,335       5,053,093  

Health Care Authority of the City of Huntsville, RB

   

Series B1, 4.00%, 06/01/45

    855       1,003,368  

Series B1, (AGM), 3.00%, 06/01/50

        2,375       2,536,999  

Lower Alabama Gas District, RB, Series A, 5.00%, 09/01/46

    1,170       1,727,306  

Selma Industrial Development Board, RB, Series A, 5.38%, 12/01/35

    770       778,993  

Southeast Energy Authority A Cooperative District, RB, Series B, 4.00%, 12/01/51(a)

    3,795       4,688,950  
   

 

 

 
          17,841,269  
Arizona — 2.6%            

Arizona Industrial Development Authority, RB(b)

   

4.38%, 07/01/39

    225       248,366  

Series A, 5.00%, 07/01/39

    190       201,858  

Series A, 5.00%, 07/01/49

    210       220,777  

Series A, 5.00%, 07/01/54

    165       172,955  

Arizona Industrial Development Authority, Refunding RB, Series A, 5.38%, 07/01/50(b)

    1,185       1,362,951  

Glendale Industrial Development Authority, RB

   

5.00%, 05/15/41

    100       115,155  

5.00%, 05/15/56

    400       449,720  

Industrial Development Authority of the City of Phoenix, RB

   

5.00%, 07/01/59

    465       550,388  

Series A, 5.00%, 07/01/46(b)

    1,825       2,025,458  

Industrial Development Authority of the City of Phoenix, Refunding RB, Series A, 5.00%, 07/01/35(b)

    275       309,342  

Industrial Development Authority of the County of Pima, RB(b)

   

5.00%, 06/15/47

    325       330,915  

5.00%, 07/01/49

    350       369,957  

Maricopa County Industrial Development Authority, Refunding RB

   

5.00%, 07/01/39(b)

    100       119,586  

5.00%, 07/01/54(b)

    210       242,340  

Series A, 4.13%, 09/01/38

    820       960,122  

Maricopa County Pollution Control Corp., Refunding RB, Series B, 3.60%, 04/01/40

    1,250       1,381,587  

Salt Verde Financial Corp., RB

   

5.00%, 12/01/32

    5,635       7,454,767  

5.00%, 12/01/37

    2,000       2,814,820  
   

 

 

 
      19,331,064  
Arkansas — 0.5%            

Arkansas Development Finance Authority, RB, Series A, AMT, 4.50%, 09/01/49(b)

    3,305       3,691,090  
   

 

 

 

California — 7.1%

   

California County Tobacco Securitization Agency, Refunding RB, Series A, 5.00%, 06/01/36

    350       353,759  
Security  

Par

(000)

    Value  

California (continued)

   

California Educational Facilities Authority, RB, Series V-1, 5.00%, 05/01/49

  $     2,315     $ 3,609,826  

California Health Facilities Financing Authority, Refunding RB

   

5.00%, 08/01/50

    1,000       1,249,650  

Series A, 5.00%, 07/01/33

    1,765       1,914,954  

Series A, 4.00%, 03/01/39

    890       1,005,184  

Series A, 4.00%, 04/01/45

    1,220       1,422,325  

California Municipal Finance Authority, ARB, AMT, Senior Lien, 4.00%, 12/31/47

    780       875,714  

California Municipal Finance Authority, RB, S/F Housing

   

Series A, 5.25%, 08/15/39

    205       222,325  

Series A, 5.25%, 08/15/49

    510       548,500  

California Pollution Control Financing Authority, RB, Series A, AMT, 5.00%, 11/21/45(b)

    2,130       2,206,957  

California School Finance Authority, Refunding RB, Series A, 5.00%, 07/01/51(b)

    1,700       1,934,396  

California State Public Works Board, RB

   

Series F, 5.25%, 09/01/33

    2,015           2,213,498  

Series I, 5.50%, 11/01/31

    3,100       3,449,122  

Series I, 5.50%, 11/01/33

    1,500       1,667,640  

Series I, 5.00%, 11/01/38

    1,065       1,170,030  

California Statewide Communities Development Authority, Refunding RB(b)

   

Series A, 5.00%, 06/01/36

    990       1,135,104  

Series A, 5.00%, 06/01/46

    1,220       1,374,769  

City of Los Angeles Department of Airports, Refunding ARB

   

Series A, AMT, 5.00%, 05/15/31

    375       505,076  

Series A, AMT, 5.00%, 05/15/32

    450       602,406  

Series A, AMT, 5.00%, 05/15/33

    445       591,022  

Series A, AMT, 5.00%, 05/15/38

    315       407,169  

Series A, AMT, 5.00%, 05/15/39

    340       438,610  

Golden State Tobacco Securitization Corp., Refunding RB

   

Series A-1, 5.00%, 06/01/47

    620       640,584  

Series A-1, 5.25%, 06/01/47

    590       610,656  

Series A-2, 5.00%, 06/01/47

    4,725       4,881,634  

Kern Community College District, GO, Series C, 5.50%, 11/01/23(c)

    2,155       2,403,795  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB

   

Series J, 5.25%, 05/15/23(c)

    3,905       4,244,774  

Series J, 5.25%, 05/15/38

    1,110       1,199,377  

Riverside County Public Financing Authority, RB, 5.25%, 11/01/40

    2,000       2,373,960  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB

   

Series A, AMT, 5.50%, 05/01/28

    720       782,762  

Series A, AMT, 5.25%, 05/01/33

    560       605,623  

San Marcos Unified School District, GO, CAB(d)

   

Series B, Election 2010, 0.00%, 08/01/33

    3,000       2,436,180  

Series B, Election 2010, 0.00%, 08/01/43

    2,500       1,534,275  

State of California, Refunding GO, 3.00%, 12/01/46

    550       593,819  
 

 

 

26  

2 0 2 1   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

California (continued)

   

Stockton Public Financing Authority, RB, Series A, 6.25%, 10/01/23(c)

  $ 490     $ 552,235  

Washington Township Health Care District, GO, Series B, Election 2004, 5.50%, 08/01/40

    830       946,665  
   

 

 

 
          52,704,375  
Colorado — 1.9%            

Arapahoe County School District No.6 Littleton, GO, Series A, (SAW), 5.50%, 12/01/43

    1,915       2,497,677  

Centerra Metropolitan District No.1, TA, 5.00%, 12/01/47(b)

    250       261,870  

City & County of Denver Colorado Airport System Revenue, ARB

   

Series B, 5.25%, 11/15/32

        1,750       1,938,265  

Series A, AMT, 5.50%, 11/15/28

    500       556,645  

Series A, AMT, 5.50%, 11/15/30

    225       250,218  

Series A, AMT, 5.50%, 11/15/31

    270       300,102  

City & County of Denver Colorado, RB, CAB, Series A-2, 0.00%, 08/01/38(d)

    1,835       1,050,648  

Colorado Educational & Cultural Facilities Authority, RB, 5.00%, 03/01/50(b)

    320       354,176  

Colorado Educational & Cultural Facilities Authority, Refunding RB, Class A, 5.00%, 10/01/59(b)

    425       473,012  

Colorado Health Facilities Authority, Refunding RB, Series A, 4.00%, 08/01/44

    1,945       2,228,600  

Denver Convention Center Hotel Authority, Refunding RB, 5.00%, 12/01/40

    1,325       1,544,182  

Denver International Business Center Metropolitan District No.1, GO, Series A, 4.00%, 12/01/48

    495       510,795  

Haskins Station Metropolitan District, GO, Series A, 5.00%, 12/01/39

    650       703,482  

State of Colorado, COP, Series O, 4.00%, 03/15/44

    1,405       1,626,035  
   

 

 

 
      14,295,707  
Connecticut — 0.7%            

State of Connecticut Special Tax Revenue, RB

   

Series A, 4.00%, 05/01/36

    365       439,741  

Series A, 4.00%, 05/01/39

    230       273,942  

State of Connecticut, GO, Series A, 4.00%, 01/15/38

    3,435       4,107,504  
   

 

 

 
      4,821,187  
Delaware — 0.2%            

Delaware Transportation Authority, RB, 5.00%, 06/01/55

    1,260       1,444,388  
   

 

 

 

District of Columbia — 2.9%

   

District of Columbia Tobacco Settlement Financing Corp., Refunding RB, 6.75%, 05/15/40

    11,500       11,856,960  

District of Columbia, Refunding RB

   

5.00%, 04/01/35

    465       564,580  

5.00%, 10/01/48

    2,525       3,061,259  

Series A, 6.00%, 07/01/23(c)

    820       906,133  

District of Columbia, TA, 5.13%, 06/01/41

    690       692,650  

Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Refunding RB

   

Series A, 5.00%, 10/01/53

    2,195       2,249,809  

Series B, Subordinate, 4.00%, 10/01/49

    1,995       2,292,674  
   

 

 

 
      21,624,065  
Florida — 6.0%            

Capital Projects Finance Authority, RB

   

Series A-1, 5.00%, 10/01/32

    215       270,371  

Series A-1, 5.00%, 10/01/33

    240       300,725  
Security  

Par

(000)

    Value  

Florida (continued)

   

Capital Projects Finance Authority, RB (continued)

   

Series A-1, 5.00%, 10/01/34

  $ 240     $ 299,294  

Series A-1, 5.00%, 10/01/35

    80       99,382  

Capital Trust Agency, Inc., RB

   

Series A, 5.00%, 06/01/45(b)

    190       202,715  

Series A, 5.00%, 12/15/49

    140       160,770  

Series A, 5.00%, 12/15/54

    125       143,413  

Celebration Pointe Community Development District, SAB(b)

   

5.00%, 05/01/32

    215       239,224  

5.00%, 05/01/48

    530       574,398  

Collier County Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45

        1,450       1,649,085  

County of Broward Florida Airport System Revenue, ARB

   

Series A, AMT, 5.00%, 10/01/45

    575       658,898  

Series A, AMT, 4.00%, 10/01/49

    330       375,477  

County of Miami-Dade Florida Aviation Revenue, Refunding RB

   

Series A, 4.00%, 10/01/37

    355       424,669  

Series A, 4.00%, 10/01/38

    355       424,300  

Series A, 4.00%, 10/01/39

    265       316,182  

Series A, AMT, 5.00%, 10/01/22(c)

    2,165           2,277,039  

County of Miami-Dade Florida Water & Sewer System Revenue, Refunding RB, Series B, 5.25%, 10/01/23(c)

    500       552,735  

County of Miami-Dade Seaport Department, ARB(c)

   

Series A, 5.50%, 10/01/23

    2,125       2,360,152  

Series A, 6.00%, 10/01/23

    7,515       8,424,616  

Series B, AMT, 6.00%, 10/01/23

    1,775       1,987,402  

Series B, AMT, 6.25%, 10/01/23

    310       348,576  

County of Miami-Dade Seaport Department, Refunding RB, Series D, AMT, 6.00%, 10/01/23(c)

    735       822,649  

County of Osceola Florida Transportation Revenue, Refunding RB, CAB(d)

   

Series A-2, 0.00%, 10/01/46

    1,665       741,158  

Series A-2, 0.00%, 10/01/47

    1,610       689,756  

Series A-2, 0.00%, 10/01/48

    1,135       467,972  

Series A-2, 0.00%, 10/01/49

    935       371,167  

Florida Development Finance Corp., RB(b)

   

Series A, 5.00%, 06/15/40

    240       276,737  

Series A, 5.00%, 06/15/50

    795       900,584  

Series A, 5.00%, 06/15/55

    475       534,594  

AMT, 5.00%, 05/01/29

    180       192,940  

Series A, AMT, 5.00%, 08/01/29(a)

    100       103,082  

Florida Development Finance Corp., Refunding RB, Series C, 5.00%, 09/15/50(b)

    105       115,803  

Hillsborough County Aviation Authority, Refunding RB, Sub-Series A, AMT, 5.50%, 10/01/29

    1,170       1,294,266  

Jacksonville Port Authority, Refunding ARB, AMT, 5.00%, 11/01/22(c)

    1,665       1,757,424  

Lakewood Ranch Stewardship District, SAB

   

5.25%, 05/01/37

    180       202,689  

5.38%, 05/01/47

    185       206,812  

Lee County Housing Finance Authority, RB, S/F Housing, Series A-2, AMT, (GNMA/FNMA/FHLMC), 6.00%, 09/01/40

    40       40,153  

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

    4,250       4,274,395  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  27


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Florida (continued)

   

Orange County Health Facilities Authority, Refunding RB, 5.00%, 08/01/41

  $     1,000     $ 1,101,390  

Osceola Chain Lakes Community Development District, SAB

   

4.00%, 05/01/40

    270       291,152  

4.00%, 05/01/50

    260       275,694  

Reedy Creek Improvement District, GO, Series A, 5.25%, 06/01/23(c)

    1,585       1,725,859  

Sarasota County Florida Utility System Revenue, RB

   

Series A, 5.00%, 10/01/45

    475       608,798  

Series A, 5.00%, 10/01/50

    715       907,535  

Stevens Plantation Community Development District, SAB, Series A, 7.10%, 05/01/35(e)(f)

    1,670       1,057,991  

Village Community Development District No.10, SAB, 5.13%, 05/01/43

    675       697,106  

Volusia County Educational Facility Authority, Refunding RB, 5.00%, 10/15/49

    1,930       2,390,228  
   

 

 

 
          44,137,357  
Georgia — 4.0%            

Gainesville & Hall County Hospital Authority, Refunding RB, Series A, (GTD), 5.50%, 02/15/25(c)

    715       827,806  

Georgia Housing & Finance Authority, RB, S/F Housing, Series B, 2.50%, 06/01/50

    795       798,776  

Main Street Natural Gas Inc RB, Series C, 4.00%, 05/01/52(a)(g)

    3,910       4,682,303  

Main Street Natural Gas, Inc., RB

   

Series A, 5.00%, 05/15/35

    540       757,085  

Series A, 5.00%, 05/15/36

    540       765,704  

Series A, 5.00%, 05/15/37

    595       853,218  

Series A, 5.00%, 05/15/38

    325       471,257  

Series A, 5.00%, 05/15/49

    7,195       11,102,173  

Municipal Electric Authority of Georgia, RB

   

4.00%, 01/01/49

    3,585       4,028,311  

4.00%, 01/01/59

    3,525       3,954,944  

Municipal Electric Authority of Georgia, Refunding RB, Sub-Series A, 4.00%, 01/01/49

    1,360       1,540,934  
   

 

 

 
      29,782,511  
Hawaii — 0.3%            

State of Hawaii Airports System Revenue, ARB, Series A, AMT, 5.00%, 07/01/45

    1,000       1,150,270  

State of Hawaii Airports System Revenue, COP

   

AMT, 5.25%, 08/01/25

    250       273,610  

AMT, 5.25%, 08/01/26

    810       886,310  
   

 

 

 
      2,310,190  
Idaho — 0.2%            

Idaho Health Facilities Authority, RB

   

4.00%, 12/01/43

    605       712,944  

Series 2017, 5.00%, 12/01/46

    805       986,528  
   

 

 

 
      1,699,472  
Illinois — 10.4%            

Chicago Board of Education, GO

   

Series A, 5.00%, 12/01/36.

    405       518,517  

Series A, 5.00%, 12/01/38

    200       254,846  

Series A, 5.00%, 12/01/39

    100       127,200  

Series A, 5.00%, 12/01/40

    310       393,282  

Series A, 5.00%, 12/01/41

    210       265,829  

Series C, 5.25%, 12/01/35

    2,790       3,128,148  

Series D, 5.00%, 12/01/46

    3,605       3,987,151  

Series H, 5.00%, 12/01/36

    495       597,227  
Security  

Par

(000)

     Value  

Illinois (continued)

    

Chicago Board of Education, GO (continued)

 

Series H, 5.00%, 12/01/46

  $ 215      $ 254,904  

Chicago Board of Education, Refunding GO

    

Series C, 5.00%, 12/01/25

    1,215            1,424,818  

Series D, 5.00%, 12/01/27

        1,600        1,974,496  

Series D, 5.00%, 12/01/31

    150        183,000  

Series F, 5.00%, 12/01/22

    880        928,981  

Series F, 5.00%, 12/01/23

    290        318,272  

Series G, 5.00%, 12/01/34

    710        862,828  

Series G, 5.00%, 12/01/44

    150        178,332  

Chicago Midway International Airport, Refunding ARB, Series A, 2nd Lien, AMT, 5.00%, 01/01/41

    1,010        1,105,930  

Chicago O’Hare International Airport, Refunding RB, Series A, Senior Lien, 4.00%, 01/01/37

    1,035        1,225,150  

Chicago Transit Authority Sales Tax Receipts Fund, RB, 5.25%, 12/01/21(c)

    6,290        6,367,178  

City of Chicago Illinois Wastewater Transmission Revenue, RB, 2nd Lien, 5.00%, 01/01/42

    1,375        1,393,562  

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

    500        524,360  

Cook County Community College District No. 508, GO

    

5.50%, 12/01/38

    2,670        2,909,045  

5.25%, 12/01/43

    3,850        4,157,576  

Illinois Finance Authority, RB, Series A, 5.00%, 02/15/37

    480        548,515  

Illinois Finance Authority, Refunding RB

    

Series A, 5.00%, 11/15/21(c)

    305        307,977  

Series A, 4.00%, 05/15/50

    600        694,182  

Series C, 5.00%, 02/15/41

    1,600        1,929,296  

Illinois State Toll Highway Authority, RB

    

Series A, 5.00%, 01/01/45

    1,420        1,817,699  

Series C, 5.00%, 01/01/37

    3,005        3,435,015  

Metropolitan Pier & Exposition Authority, RB

    

Series A, 5.50%, 06/15/53

    280        331,288  

Series A, 5.00%, 06/15/57

    2,745        3,254,362  

Metropolitan Pier & Exposition Authority, RB, CAB, (BAM-TCRS), 0.00%, 12/15/56(d)

    2,165        839,284  

Metropolitan Pier & Exposition Authority, Refunding RB, 4.00%, 06/15/50

    2,705        3,072,123  

Metropolitan Pier & Exposition Authority, Refunding RB, CAB(d)

    

Series B, (AGM), 0.00%, 06/15/43

    5,700        3,383,121  

Series B, (AGM), 0.00%, 06/15/44

    2,980        1,712,099  

Series B, 0.00%, 12/15/54

    3,020        1,161,341  

State of Illinois, GO

    

5.25%, 02/01/31

    730        807,271  

5.25%, 02/01/32

    2,500        2,762,725  

5.50%, 07/01/33

    3,000        3,237,630  

5.00%, 03/01/37

    455        464,291  

5.50%, 07/01/38

    620        666,754  

5.00%, 02/01/39

    1,640        1,787,305  

Series A, 5.00%, 04/01/35

    3,500        3,691,205  

Series A, 5.00%, 04/01/38

    5,020        5,278,078  

Series C, 4.00%, 11/01/43

    440        500,531  

Series D, 5.00%, 11/01/28

    505        618,231  

State of Illinois, Refunding GO, Series B, 5.00%, 10/01/27

    180        220,891  

University of Illinois, RB, Series A, 5.00%, 04/01/44

    1,360        1,509,682  
    

 

 

 
       77,111,528  
 

 

 

28  

2 0 2 1   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Indiana — 2.5%

   

City of Valparaiso Indiana, RB

   

AMT, 6.75%, 01/01/34

  $     1,090     $ 1,197,202  

AMT, 7.00%, 01/01/44

    4,625           5,085,881  

Indiana Finance Authority, RB

   

Series A, AMT, 5.00%, 07/01/40

    375       401,681  

Series A, AMT, 5.00%, 07/01/44

    625       666,144  

Series A, AMT, 5.00%, 07/01/48

    2,075       2,220,395  

Series A, AMT, 5.25%, 01/01/51

    560       602,521  

Indiana Finance Authority, Refunding RB, 4.75%, 03/01/22(c)

    2,030       2,076,913  

Indiana Finance Authority,Refunding RB, Series A, 1st Lien, 5.25%, 10/01/38

    4,530       4,548,754  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40

    1,780       1,892,763  
   

 

 

 
      18,692,254  
Iowa — 1.2%            

Iowa Finance Authority, Refunding RB 5.25%, 12/01/25

    1,270       1,393,546  

Series B, 5.25%, 12/01/50(a)

    4,855       5,322,973  

Iowa Student Loan Liquidity Corp., RB, Series B, AMT, 3.00%, 12/01/39

    2,425       2,517,902  
   

 

 

 
      9,234,421  
Kansas — 0.1%            

City of Lenexa Kansas, Refunding RB, Series A, 5.00%, 05/15/43

    475       513,290  
   

 

 

 

Kentucky — 1.1%

   

Kentucky Economic Development Finance Authority, RB, Series A, 5.25%, 01/01/23(c)

    1,385       1,478,917  

Kentucky Economic Development Finance Authority, Refunding RB, Series B, (NPFGC), 0.00%, 10/01/24(d)

    5,000       4,821,900  

Kentucky Public Transportation Infrastructure Authority, RB, CAB, Series C, Convertible, 6.75%, 07/01/43(h)

    1,655       2,050,131  
   

 

 

 
      8,350,948  
Louisiana — 0.8%            

Lake Charles Harbor & Terminal District, ARB, Series B, AMT, (AGM), 5.50%, 01/01/29

    1,000       1,120,780  

Tobacco Settlement Financing Corp., Refunding RB

   

Series A, 5.25%, 05/15/31

    435       436,066  

Series A, 5.25%, 05/15/32

    1,540       1,589,896  

Series A, 5.25%, 05/15/33

    1,675       1,729,086  

Series A, 5.25%, 05/15/35

    955       1,027,656  
   

 

 

 
      5,903,484  
Maryland — 0.1%            

City of Baltimore Maryland, Refunding RB, Series A, 4.50%, 09/01/33

    135       150,150  

Maryland Health & Higher Educational Facilities Authority, RB, Series 2017, 5.00%, 12/01/46

    455       552,215  
   

 

 

 
      702,365  
Massachusetts — 0.8%            

Massachusetts Development Finance Agency, RB, Series A, 5.00%, 01/01/47

    1,975       2,309,546  
Security  

Par

(000)

    Value  

Massachusetts (continued)

   

Massachusetts Development Finance Agency, Refunding RB

   

5.00%, 01/01/41

  $ 525     $ 598,369  

5.00%, 01/01/45

    375       426,146  

Series A, 4.00%, 07/01/44

    685       776,509  

Massachusetts Port Authority, ARB, Series E, AMT, 5.00%, 07/01/51

        1,220       1,548,375  
   

 

 

 
          5,658,945  
Michigan — 2.5%            

City of Detroit Michigan Sewage Disposal System Revenue, Refunding RB, Series A, Senior Lien, 5.25%, 07/01/22(c)

    6,750       7,039,305  

City of Detroit Michigan Water Supply System Revenue, RB, Series B, 2nd Lien, (AGM), 6.25%, 07/01/36

    5       5,024  

Grand Traverse County Hospital Finance Authority, RB, Series A, 5.00%, 07/01/44

    1,110       1,372,126  

Michigan Finance Authority, RB, Series C-1, Senior Lien, 5.00%, 07/01/22(c)

    275       286,212  

Michigan Finance Authority, Refunding RB, Series A, 4.00%, 12/01/49

    895       1,042,219  

Michigan State Housing Development Authority, RB, M/F Housing

   

Series A, 2.55%, 10/01/51

    2,290       2,272,848  

Series A, 2.70%, 10/01/56

    2,695       2,708,340  

Michigan State University, Refunding RB, Series B, 5.00%, 02/15/48

    1,100       1,378,124  

Michigan Strategic Fund, RB, AMT, 5.00%, 06/30/48

    1,680       2,027,626  
   

 

 

 
      18,131,824  
Minnesota — 2.1%            

City of Minneapolis Minnesota, Refunding RB, Series A, 5.00%, 11/15/49

    1,790       2,212,171  

Duluth Economic Development Authority, Refunding RB

   

Series A, 4.25%, 02/15/48

    7,760       8,812,411  

Series A, 5.25%, 02/15/53

    2,230       2,739,800  

Series A, 5.25%, 02/15/58

    1,435       1,763,185  
   

 

 

 
      15,527,567  
Mississippi — 0.2%            

Mississippi Development Bank, RB, (AGM), 6.88%, 12/01/40

    1,190       1,339,975  

Mississippi State University Educational Building Corp., Refunding RB, 5.25%, 08/01/23(c)

    260       285,475  
   

 

 

 
      1,625,450  
Missouri — 1.6%            

370/Missouri Bottom Road/Taussig Road Transportation Development District, RB, 7.20%, 05/01/33(e)(f)

    6,000       2,130,000  

Health & Educational Facilities Authority of the State of Missouri, RB, 4.00%, 06/01/53

    3,180       3,672,137  

Health & Educational Facilities Authority of the State of Missouri, Refunding RB

   

5.50%, 05/01/43

    345       369,229  

Series A, 4.00%, 07/01/40

    1,830       2,213,147  

Series A, 4.00%, 07/01/46

    655       785,784  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  29


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Missouri (continued)

   

Kansas City Industrial Development Authority, ARB, AMT, (AGM), 4.00%, 03/01/57

  $ 975     $ 1,114,971  

Missouri Housing Development Commission, RB, S/F Housing

   

(GNMA/FNMA/FHLMC COLL), 2.35%, 11/01/46

    465       464,726  

(GNMA/FNMA/FHLMC COLL), 2.40%, 11/01/51

    480       480,077  

St Louis County Industrial Development Authority, Refunding RB, 5.00%, 09/01/37

    500       571,750  
   

 

 

 
          11,801,821  
Montana — 0.0%            

City of Kalispell Montana, Refunding RB, Series A, 5.25%, 05/15/37

    125       137,429  
   

 

 

 

Nebraska — 0.5%

   

Central Plains Energy Project, RB

   

5.25%, 09/01/37

        1,155       1,212,900  

5.00%, 09/01/42

    2,025       2,121,471  
   

 

 

 
      3,334,371  
New Hampshire(b) — 0.6%            

New Hampshire Business Finance Authority, Refunding RB

   

Series A, 3.63%, 07/01/43(a)

    170       179,738  

Series B, 4.63%, 11/01/42

    2,350       2,461,437  

Series B, AMT, 3.75%, 07/01/45(a)

    270       284,169  

Series C, AMT, 4.88%, 11/01/42

    1,260       1,325,369  
   

 

 

 
      4,250,713  
New Jersey — 12.6%            

Casino Reinvestment Development Authority, Inc., Refunding RB

   

5.25%, 11/01/39

    2,390       2,672,378  

5.25%, 11/01/44

    2,250       2,479,567  

Hudson County Improvement Authority, RB, 4.00%, 10/01/46

    1,830       2,175,504  

Middlesex County Improvement Authority, RB, Series B, 6.25%, 01/01/37(e)(f)

    645       12,900  

New Jersey Economic Development Authority, RB

   

4.00%, 11/01/38

    560       649,236  

4.00%, 11/01/39

    450       521,667  

5.00%, 06/15/49

    2,535       3,104,969  

Series EEE, 5.00%, 06/15/43

    3,710       4,581,293  

Series EEE, 5.00%, 06/15/48

    4,020       4,936,922  

AMT, 5.13%, 09/15/23

    1,705       1,797,258  

AMT, (AGM), 5.00%, 01/01/31

    530       580,774  

AMT, 5.38%, 01/01/43

    1,500       1,650,300  

New Jersey Economic Development Authority, Refunding ARB, AMT, 5.00%, 10/01/47

    1,570       1,838,187  

New Jersey Economic Development Authority, Refunding RB, Series BBB, 5.50%, 06/15/31

    775       959,559  

New Jersey Economic Development Authority, Refunding SAB

   

6.50%, 04/01/28

    7,475       8,234,460  

5.75%, 04/01/31

    705       751,742  

New Jersey Higher Education Student Assistance Authority, Refunding RB, Sub-Series C, AMT, 3.63%, 12/01/49

    665       680,002  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series A, (HUD SECT 8), 2.30%, 11/01/40

    1,150       1,142,997  

New Jersey Transportation Trust Fund Authority, RB

   

5.00%, 06/15/46

    2,930       3,609,731  
Security  

Par

(000)

    Value  

New Jersey (continued)

   

New Jersey Transportation Trust Fund Authority, RB (continued)

   

Series A, 5.00%, 06/15/28.

  $ 500     $ 598,830  

Series AA, 5.50%, 06/15/39

    3,845       4,179,784  

Series AA, 5.00%, 06/15/44

    2,085       2,263,664  

Series AA, 4.00%, 06/15/45

    855       995,006  

Series AA, 5.00%, 06/15/45

    415       476,657  

Series BB, 4.00%, 06/15/50

    1,645       1,863,966  

Series BB, 5.00%, 06/15/50

    5,395       6,599,326  

Series S, 5.25%, 06/15/43

    1,145       1,448,746  

New Jersey Turnpike Authority, RB

   

Series A, 5.00%, 07/01/22(c)

    770       801,193  

Series A, 4.00%, 01/01/42

    800       959,920  

Series A, 4.00%, 01/01/48

    1,190       1,367,024  

Series E, 5.00%, 01/01/45

    2,810       3,206,912  

Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/23(c)

    735       794,315  

State of New Jersey, GO

   

Series A, 4.00%, 06/01/31

    620       778,807  

Series A, 3.00%, 06/01/32

    1,430       1,631,787  

Tobacco Settlement Financing Corp., Refunding RB

   

Series A, 5.00%, 06/01/35

    1,605       1,996,668  

Series A, 5.25%, 06/01/46

    4,415       5,376,145  

Sub-Series B, 5.00%, 06/01/46

        12,780       15,200,149  
   

 

 

 
          92,918,345  
New Mexico — 0.0%            

City of Santa Fe New Mexico, RB, Series A, 5.00%, 05/15/44

    100       111,823  
   

 

 

 

New York — 15.3%

   

Buffalo & Erie County Industrial Land Development Corp., Refunding RB, Series A, 5.00%, 06/01/35

    500       564,030  

City of New York GO, 5.00%, 08/01/47

    4,530       5,806,282  

City of New York, GO

   

Series C, 5.00%, 08/01/42

    1,870       2,381,576  

Series D-1, 4.00%, 03/01/44

    515       598,636  

Hudson Yards Infrastructure Corp., RB, 5.75%, 02/15/47

    525       527,363  

Metropolitan Transportation Authority, RB

   

Series A, 5.25%, 11/15/21(c)

    500       505,225  

Series B, 5.25%, 11/15/38

    3,305       3,698,394  

Series B, 5.25%, 11/15/39

    910       1,017,689  

Series C, 4.00%, 11/15/33

    100       105,819  

Metropolitan Transportation Authority, Refunding RB

   

Series B, 5.00%, 11/15/22

    400       421,736  

Series C-1, 5.00%, 11/15/25

    100       117,974  

Series C-1, 5.00%, 11/15/26

    65       78,816  

Series C-1, 4.75%, 11/15/45

    6,795       8,226,367  

Series C-1, 5.00%, 11/15/50

    575       702,662  

Series C-1, 5.25%, 11/15/55

    845       1,047,885  

Monroe County Industrial Development Corp., Refunding RB

   

4.00%, 12/01/46

    1,090       1,251,560  

Series A, 4.00%, 07/01/50

    1,175       1,372,976  

New York City Housing Development Corp., RB, M/F Housing

   

Series A, 3.00%, 11/01/55.

    3,375       3,445,605  

Series C-1A, 4.20%, 11/01/44

    3,000       3,114,690  

Series H, 2.55%, 11/01/45

    925       932,271  
 

 

 

30  

2 0 2 1   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

New York (continued)

   

New York City Housing Development Corp.,
Refunding RB, M/F Housing, Series D-1-B, (FHA 542 (C)), 2.50%, 11/01/55

  $       1,500     $ 1,486,770  

New York City Industrial Development Agency, Refunding RB

   

(AGM), 3.00%, 03/01/49

    2,060       2,192,767  

3.00%, 03/01/49

    1,645       1,706,688  

Series A, Class A, (AGM), 3.00%, 01/01/37

    235       258,566  

Series A, Class A, (AGM), 3.00%, 01/01/39

    235       258,563  

Series A, Class A, (AGM), 3.00%, 01/01/40

    165       181,117  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB

   

Sub-Series B-1, 4.00%, 11/01/45

    5,000       5,835,850  

Sub-Series E-1, 5.00%, 02/01/42

    3,450       3,517,137  

Series C, Subordinate, 4.00%, 05/01/45

    1,200       1,411,680  

Sub-Series C-1, Subordinate, 4.00%, 05/01/40

    480       574,027  

New York Counties Tobacco Trust IV, Refunding RB, Series A, 6.25%, 06/01/41(b)

    3,400       3,452,326  

New York Liberty Development Corp. Refunding RB(g)

   

2.88%, 11/15/46

    5,210       5,268,925  

3.00%, 11/15/51

    1,190       1,219,488  

New York Liberty Development Corp., Refunding RB(b)

   

Series 1, Class 1, 5.00%, 11/15/44

    6,110       6,818,210  

Series 2, Class 2, 5.15%, 11/15/34

    470       536,171  

Series 2, Class 2, 5.38%, 11/15/40

    1,175       1,343,859  

New York Power Authority, Refunding RB, Series A, 4.00%, 11/15/60

    1,225       1,428,999  

New York State Dormitory Authority, Refunding RB, Series A, 5.00%, 03/15/45

    1,530       1,898,271  

New York State Environmental Facilities Corp., RB, Series B, Subordinate, 5.00%, 06/15/48

    1,945       2,432,242  

New York State Housing Finance Agency, RB, M/F Housing, Series L-1, (SONYMA), 2.60%, 11/01/50

    2,200       2,207,568  

New York State Thruway Authority, Refunding RB, Series B, Subordinate, 4.00%, 01/01/45

    3,110       3,622,715  

New York State Urban Development Corp., RB

   

Series A, 4.00%, 03/15/49

    8,750           10,178,962  

Series A, 3.00%, 03/15/50

    1,420       1,498,995  

New York Transportation Development Corp., ARB, Series A, AMT, 5.25%, 01/01/50

    1,600       1,794,416  

New York Transportation Development Corp., RB

   

AMT, 5.00%, 10/01/35

    640       814,298  

AMT, 5.00%, 10/01/40

    1,825       2,288,094  

AMT, 4.00%, 04/30/53

    425       489,120  

Port Authority of New York & New Jersey, ARB

   

4.00%, 09/01/45

    2,500       2,911,950  

4.00%, 09/01/49

    1,500       1,734,960  

Port Authority of New York & New Jersey, Refunding ARB, AMT, 4.00%, 07/15/40

    1,350       1,607,310  

Triborough Bridge & Tunnel Authority, RB

   

Series A, 4.00%, 11/15/54

    1,085       1,268,495  

Series A, 5.00%, 11/15/54

    935       1,179,390  

Series A, 5.00%, 11/15/56

    1,640       2,084,620  
Security  

Par

(000)

    Value  

New York (continued)

   

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

  $       1,024     $ 1,133,179  

Westchester Tobacco Asset Securitization Corp., Refunding RB, Sub-Series C, 4.00%, 06/01/42

    240       264,542  
   

 

 

 
          112,817,826  
North Carolina — 0.7%            

County of Union North Carolina Enterprise System Revenue, RB, 3.00%, 06/01/51

    2,255       2,453,237  

North Carolina Medical Care Commission, RB

   

Series A, 4.00%, 10/01/40

    125       141,316  

Series A, 5.00%, 10/01/40

    190       234,473  

Series A, 4.00%, 10/01/45

    565       633,094  

Series A, 5.00%, 10/01/45

    340       416,517  

Series A, 4.00%, 10/01/50

    145       161,737  

Series A, 5.00%, 10/01/50

    380       456,734  

University of North Carolina at Chapel Hill, RB, 5.00%, 02/01/49

    590       926,271  
   

 

 

 
      5,423,379  
North Dakota — 0.2%            

County of Cass North Dakota, Refunding RB, Series B, 5.25%, 02/15/58

    1,035       1,268,092  
   

 

 

 
Ohio — 3.2%            

Buckeye Tobacco Settlement Financing Authority, Refunding RB

   

Series A-2, Class 1, 4.00%, 06/01/37

    315       373,688  

Series A-2, Class 1, 4.00%, 06/01/38

    315       372,339  

Series A-2, Class 1, 4.00%, 06/01/39

    315       371,344  

Series A-2, Class 1, 4.00%, 06/01/48

    825       945,731  

Series B-2, Class 2, 5.00%, 06/01/55

    8,295       9,638,624  

County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Series A, 4.00%, 11/01/44

    450       485,541  

County of Franklin Ohio, RB

   

Series 2017, 5.00%, 12/01/46

    435       528,638  

Series A, 6.13%, 07/01/22(c)

    55       57,751  

Series A, 6.13%, 07/01/40

    865       900,872  

Series A, 4.00%, 12/01/49

    555       646,786  

County of Hamilton Ohio, Refunding RB

   

4.00%, 08/15/50

    2,415       2,824,656  

Series A, 3.75%, 08/15/50

    1,155       1,304,746  

Ohio Air Quality Development Authority, RB, AMT, 5.00%, 07/01/49(b)

    1,060       1,232,335  

Ohio Turnpike & Infrastructure Commission, RB, Series A-1, Junior Lien, 5.25%, 02/15/31

    2,885       3,097,884  

State of Ohio, RB, AMT, 5.00%, 06/30/53

    870       976,827  
   

 

 

 
      23,757,762  
Oklahoma — 1.3%            

Norman Regional Hospital Authority, Refunding RB, 5.00%, 09/01/37

    400       473,204  

Oklahoma Development Finance Authority, RB, Series B, 5.25%, 08/15/48

    2,225       2,711,207  

Oklahoma Turnpike Authority, RB

   

Series A, 4.00%, 01/01/48

    2,230       2,556,115  

Series C, 4.00%, 01/01/42

    2,120       2,437,004  

Tulsa County Industrial Authority, Refunding RB, 5.25%, 11/15/45

    1,435       1,615,580  
   

 

 

 
      9,793,110  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  31


Schedule of Investments  (continued)

August 31, 2021

  

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Oregon — 0.6%

   

Clackamas County School District No.12 North Clackamas, GO, CAB, Series A, (GTD), 0.00%, 06/15/38(d)

  $ 1,445     $ 809,980  

Multnomah & Clackamas Counties School District No.10JT Gresham-Barlow, GO, CAB, Series A, (GTD), 0.00%, 06/15/38(d)

    470       295,484  

Oregon State Facilities Authority, RB, (AGM), 5.00%, 07/01/22(c)

    715