UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

 

Investment Company Act file number: 811-10339

 

Name of Fund: BlackRock Municipal Income Trust (BFK)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Income Trust, 55 East 52nd Street, New York, NY 10055

 

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

 

Date of fiscal year end: 04/30/2014

 

Date of reporting period: 01/31/2014

 

Item 1 – Schedule of Investments

 
 
 
Schedule of Investments January 31, 2014 (Unaudited) BlackRock Municipal Income Trust (BFK)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Alabama  — 3.4%          
Alabama State Docks Department, Refunding RB, 6.00%, 10/01/40  $4,080   $4,583,554 
County of Jefferson Alabama, RB, Limited Obligation School, Series A, 5.25%, 1/01/19   2,910    2,921,087 
County of Jefferson Alabama Sewer, Refunding RB:          
Convertible CAB, Senior Lien, Series C (AGM), 0.00%, 10/01/38 (a)   1,135    638,460 
Convertible CAB, Senior Lien, Series C (AGM), 0.00%, 10/01/42 (a)   985    546,921 
Senior Lien, Series A (AGM), 5.00%, 10/01/44   1,555    1,514,446 
Senior Lien, Series A (AGM), 5.25%, 10/01/48   2,960    2,913,321 
Sub-Lien, Series D, 6.00%, 10/01/42   5,740    5,662,108 
Sub-Lien, Series D, 7.00%, 10/01/51   1,765    1,848,784 
         20,628,681 
Arizona  — 2.9%          
Salt Verde Financial Corp., RB, Senior:          
5.00%, 12/01/32   10,030    10,276,236 
5.00%, 12/01/37   7,460    7,532,213 
         17,808,449 
California  — 18.3%          
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/44   4,445    4,811,224 
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42   6,230    7,161,011 
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33   2,465    2,593,476 
California Pollution Control Financing Authority, RB:          
County of San Diego California Water Authority Desalination Project Pipeline, 5.00%, 11/21/45   2,415    2,248,027 
           
Municipal Bonds  Par
(000)		  Value
California (continued)          
California Pollution Control Financing Authority, RB  (concluded):          
Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 7/01/37 (b)  $2,015   $1,828,975 
Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (b)   5,035    4,419,874 
California State Public Works Board, RB, Various Capital Projects:          
Series I, 5.00%, 11/01/38   1,495    1,553,365 
Sub-Series I-1, 6.38%, 11/01/34   2,315    2,680,515 
California Statewide Communities Development Authority, Refunding RB, Episcopal Communities & Services:          
5.00%, 5/15/42   650    612,463 
5.00%, 5/15/47   705    659,168 
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport:          
Senior Series A, 5.00%, 5/15/40   11,690    12,260,706 
Series A, 5.25%, 5/15/39   1,560    1,681,212 
City of Stockton California Public Financing Authority, ARB, Delta Water Supply Project, Series A, 6.25%, 10/01/40   690    747,988 
County of Stanislaus California Tobacco Securitization Agency, RB, CAB, Sub-Series C, 0.00%, 6/01/55 (c)   17,855    110,522 
Foothill Eastern Transportation Corridor Agency California, Refunding RB, CAB, 0.00%, 2/01/14 (c)(d)   75,000    17,820,750 
Foothill-De Anza Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/40   7,000    7,426,440 
Murrieta Community Facilities District Special Tax California, Special Tax Bonds, District No.2, The Oaks Improvement Area A, 6.00%, 9/01/34   5,000    5,017,600 
Riverside County Transportation Commission, RB, CAB, Senior Lien, Series B (c):          
0.00%, 6/01/41   5,000    894,200 
BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 20141
 
Schedule of Investments (continued) BlackRock Municipal Income Trust (BFK)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
California (concluded)      
Riverside County Transportation Commission, RB, CAB, Senior Lien, Series B (c) (concluded):          
0.00%, 6/01/42  $6,000   $1,002,480 
0.00%, 6/01/43   5,000    782,150 
San Diego Community College District California, GO, Election of 2006, 5.00%, 8/01/43   2,115    2,249,831 
San Marcos Unified School District, GO, CAB, Election of 2010, Series B (c):          
0.00%, 8/01/34   3,500    1,221,885 
0.00%, 8/01/36   4,000    1,243,680 
State of California, GO, Various Purposes:          
6.00%, 3/01/33   4,970    5,814,403 
6.50%, 4/01/33   20,410    24,496,490 
         111,338,435 
Colorado  — 2.2%          
Colorado Health Facilities Authority, Refunding RB:          
Catholic Health Initiative, Series A, 5.50%, 7/01/34   4,205    4,664,775 
Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42   3,425    3,273,786 
Colorado State Board of Governors, Refunding RB, State University System Enterprise, Series A, 5.00%, 3/01/43   2,310    2,548,207 
Park Creek Metropolitan District, Refunding RB, Senior Limited Property Tax, 5.50%, 12/01/37   2,530    2,596,742 
         13,083,510 
Connecticut  — 0.5%          
Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, Series A, 5.00%, 11/15/40   2,710    2,823,034 
Delaware  — 2.0%          
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40   2,225    2,334,648 
Delaware State EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45   10,150    9,959,890 
         12,294,538 
       
Municipal Bonds  Par
(000)		  Value
District of Columbia  — 4.6%          
District of Columbia, Refunding RB, Kipp Charter School, Series A, 6.00%, 7/01/43  $1,480   $1,562,688 
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 5/15/40   23,035    22,917,982 
Metropolitan Washington Airports Authority, Refunding RB, 1st Senior Lien, Series A:          
5.00%, 10/01/39   990    1,014,958 
5.25%, 10/01/44   2,465    2,531,604 
         28,027,232 
Florida  — 4.4%          
County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A-1, 5.38%, 10/01/41   2,280    2,380,320 
County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center:          
5.00%, 6/01/32   600    602,520 
5.00%, 6/01/36   125    124,326 
5.13%, 6/01/42   1,925    1,923,441 
County of Tampa-Hillsborough Florida Expressway Authority, Refunding RB:          
Series A, 5.00%, 7/01/37   3,920    4,080,994 
Series B, 5.00%, 7/01/42   2,460    2,527,945 
Miami Beach Health Facilities Authority, RB, Mount Sinai Medical Center Florida, 6.75%, 11/15/21   5,570    5,807,839 
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/40   5,885    6,517,696 
Stevens Plantation Community Development District, Special Assessment, Series A, 7.10%, 5/01/35 (e)(f)   3,590    2,673,617 
         26,638,698 
Georgia  — 1.8%          
DeKalb Private Hospital Authority, Refunding RB, Children's Healthcare, 5.25%, 11/15/39   1,650    1,712,337 
Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, Third Indenture, Series A, 5.00%, 7/01/39   5,000    5,236,200 
BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 20142
 
Schedule of Investments (continued) BlackRock Municipal Income Trust (BFK)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Georgia (concluded)          
Richmond County Development Authority, Refunding RB, International Paper Co. Project, Series A, AMT, 6.00%, 2/01/25  $4,000   $4,000,960 
         10,949,497 
Hawaii  — 0.5%          
State of Hawaii Harbor System, RB, Series A, 5.25%, 7/01/30   2,660    2,893,495 
Illinois  — 13.7%          
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series C, 6.50%, 1/01/41   11,385    12,971,500 
City of Chicago Illinois, GO, Project, Series A:          
5.00%, 1/01/33   4,435    4,443,426 
5.00%, 1/01/34   4,430    4,429,823 
City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38   1,605    1,664,883 
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40   2,055    2,115,992 
City of Chicago Illinois Waterworks Revenue, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42   7,625    7,667,395 
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38   1,525    1,637,484 
Illinois Finance Authority, RB, Advocate Health Care, Series C, 5.38%, 4/01/44   10,630    10,994,396 
Illinois Finance Authority, Refunding RB:          
Ascension Health, Series A, 5.00%, 11/15/37   1,895    1,944,024 
Ascension Health, Series A, 5.00%, 11/15/42   3,450    3,514,377 
Central Dupage Health, Series B, 5.50%, 11/01/39   3,160    3,401,519 
Friendship Village Schaumburg, Series A, 5.63%, 2/15/37   470    420,951 
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38   4,550    4,681,722 
            
Municipal Bonds  Par
(000)		  Value
Illinois (concluded)          
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:          
Series B (AGM), 5.00%, 6/15/50  $6,030   $6,031,146 
Series B-2, 5.00%, 6/15/50   3,905    3,827,798 
Railsplitter Tobacco Settlement Authority, RB:          
5.50%, 6/01/23   885    990,430 
6.00%, 6/01/28   2,245    2,490,154 
State of Illinois, GO, Series A, 5.00%, 4/01/38   9,030    9,068,919 
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34   1,240    1,295,912 
         83,591,851 
Indiana  — 5.2%          
Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A:          
4.00%, 8/01/35   735    713,310 
4.00%, 2/01/38   3,555    3,360,648 
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:          
6.75%, 1/01/34   1,525    1,582,904 
7.00%, 1/01/44   3,680    3,845,490 
City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village, 6.25%, 1/01/24   1,695    995,999 
Indiana Finance Authority, RB, Series A:          
CWA Authority Project, 1st Lien, 5.25%, 10/01/38   6,305    6,717,725 
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44   880    828,916 
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48   2,905    2,706,937 
Sisters of St. Francis Health Services, 5.25%, 11/01/39   1,655    1,712,064 
Indiana Finance Authority, Refunding RB, Community Health Network Project, Series A, 5.00%, 5/01/42   3,670    3,631,355 
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39   2,150    2,368,333 
BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 20143
 
Schedule of Investments (continued) BlackRock Municipal Income Trust (BFK)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Indiana (concluded)      
Indianapolis Local Public Improvement Bond Bank, RB, Series A:          
5.00%, 1/15/36  $780   $828,555 
5.00%, 1/15/40   2,490    2,618,385 
         31,910,621 
Iowa  — 2.2%          
Iowa Finance Authority, RB, Midwestern Disaster Area, Alcoa, Inc. Project, 4.75%, 8/01/42   2,265    1,949,372 
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:          
5.00%, 12/01/19   1,880    1,857,440 
5.50%, 12/01/22   4,595    4,429,672 
5.25%, 12/01/25   2,125    1,972,446 
Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22   3,165    3,327,080 
         13,536,010 
Kentucky  — 0.5%          
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45   1,915    1,957,321 
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43 (a)   2,325    1,308,464 
         3,265,785 
Louisiana  — 2.7%          
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35   6,535    7,097,925 
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:          
5.50%, 5/15/30   1,980    2,023,599 
5.25%, 5/15/31   1,690    1,696,456 
5.25%, 5/15/32   2,160    2,163,413 
5.25%, 5/15/33   2,345    2,343,405 
5.25%, 5/15/35   985    980,548 
         16,305,346 
            
Municipal Bonds  Par
(000)		  Value
Maryland  — 1.3%          
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35  $855   $872,776 
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25   2,235    2,343,263 
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/41   4,295    4,561,634 
Montgomery County Housing Opportunities Commission, RB, Series D, AMT, 5.50%, 1/01/38   415    421,204 
         8,198,877 
Massachusetts  — 1.1%          
Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare System, Series J1, 5.00%, 7/01/39   3,535    3,642,994 
Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series A, 5.00%, 5/15/43   2,780    2,971,487 
         6,614,481 
Michigan  — 3.4%          
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A:          
5.00%, 7/01/32   3,065    2,799,295 
5.25%, 7/01/39   8,665    7,996,149 
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41   2,870    3,126,521 
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36   2,700    2,793,933 
Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, Series A, 5.25%, 11/15/46   4,230    4,156,736 
         20,872,634 
BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 20144
 
Schedule of Investments (continued) BlackRock Municipal Income Trust (BFK)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Mississippi  — 2.3%          
City of Gulfport Mississippi, RB, Memorial Hospital at Gulfport Project, Series A, 5.75%, 7/01/31  $14,025   $14,035,378 
Missouri  — 0.5%          
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44   495    520,186 
Missouri State Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Services, 5.50%, 2/01/42   2,035    2,064,039 
Missouri State Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43   480    494,693 
         3,078,918 
Multi-State—2.7%                
Centerline Equity Issuer Trust, 6.80%, 11/15/14 (b)(g)   16,000    16,654,080 
Nebraska  — 1.4%          
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42   2,815    2,818,772 
Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.25%, 9/01/37   1,610    1,646,756 
County of Douglas Nebraska Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 1/01/40   3,280    3,433,275 
County of Lancaster Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, Health Facilities, 5.63%, 1/01/40   600    628,038 
         8,526,841 
Nevada  — 0.8%          
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29   4,550    4,794,062 
            
Municipal Bonds  Par
(000)		  Value
New Jersey  — 9.8%          
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (e)(f)  $3,680   $255,686 
New Jersey EDA, RB:          
Continental Airlines, Inc. Project, AMT, 5.25%, 9/15/29   3,830    3,686,375 
Continental Airlines, Inc. Project, AMT, 7.00%, 11/15/30 (h)   15,410    15,410,000 
The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43   2,285    2,299,738 
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28   8,000    9,007,040 
New Jersey State Turnpike Authority, RB, Series A:          
5.00%, 1/01/38   2,535    2,657,289 
5.00%, 1/01/43   8,150    8,461,493 
New Jersey Transportation Trust Fund Authority, RB:          
Transportation Program, Series A, 5.50%, 6/15/41   8,000    8,507,040 
Transportation System, Series B, 5.25%, 6/15/36   4,810    5,114,569 
Rutgers - The State University of New Jersey, Refunding RB, Series L:          
5.00%, 5/01/38   985    1,064,431 
5.00%, 5/01/43   1,030    1,100,699 
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 4.50%, 6/01/23   2,165    2,031,030 
         59,595,390 
New York  — 8.2%          
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35 (e)(f)   1,820    273,073 
City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport, AMT (h):          
8.00%, 8/01/28   5,000    5,486,550 
7.75%, 8/01/31   22,140    24,294,443 
BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 20145
 
Schedule of Investments (continued) BlackRock Municipal Income Trust (BFK)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
New York (concluded)          
City of New York New York Transitional Finance Authority, Future Tax Secured Bonds, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42  $4,805   $5,060,578 
New York Liberty Development Corp., Refunding RB, Liberty, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49   2,400    2,566,824 
New York State Dormitory Authority, RB, Series F, 5.00%, 3/15/35   4,775    4,935,345 
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:          
6.00%, 12/01/36   2,525    2,737,782 
6.00%, 12/01/42   1,960    2,121,582 
Utility Debt Securitization Authority, Refunding RB, Restructuring, Series TE, 5.00%, 12/15/41   2,060    2,219,588 
         49,695,765 
North Carolina  — 4.2%          
County of Gaston Industrial Facilities & Pollution Control Financing Authority, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35   12,130    10,827,117 
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/38   10,000    10,912,800 
North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/42   2,750    2,927,568 
North Carolina Medical Care Commission, Refunding RB, Retirement Facilities, 1st Mortgage, Whitestone Project, Series A, 7.75%, 3/01/41   1,130    1,198,568 
         25,866,053 
Ohio  — 3.1%          
County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38   6,125    6,402,769 
            
Municipal Bonds  Par
(000)		  Value
Ohio (concluded)          
County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities, Series A, 6.13%, 7/01/40  $1,280   $1,290,163 
County of Hamilton Ohio, RB, Christ Hospital Project, 5.00%, 6/01/42   2,300    2,282,612 
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.00%, 5/01/39   5,450    5,487,060 
Pinnacle Community Infrastructure Financing Authority, RB, Facilities, Series A, 6.25%, 12/01/36   3,760    3,687,958 
         19,150,562 
Pennsylvania  — 0.6%          
Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project, Series B, 5.00%, 11/15/40   3,725    3,826,394 
South Carolina  — 1.1%          
South Carolina State Ports Authority, RB, 5.25%, 7/01/40   6,455    6,769,617 
Tennessee  — 0.5%          
City of Chattanooga Tennessee Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45   2,660    2,718,786 
Texas  — 16.1%          
Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 (e)(f)   4,370    136,562 
Central Texas Regional Mobility Authority, Refunding RB:          
Senior Lien, 6.25%, 1/01/46   4,210    4,405,386 
Sub-Lien, 5.00%, 1/01/33   700    656,628 
Sub-Lien, 5.00%, 1/01/42   620    556,506 
City of Dallas Texas Waterworks & Sewer System, Refunding RB, 5.00%, 10/01/35   2,970    3,225,806 
City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39   3,000    3,309,990 
City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 11/15/35   16,425    18,777,060 
BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 20146
 
Schedule of Investments (continued) BlackRock Municipal Income Trust (BFK)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds  Par
(000)		  Value
Texas (continued)      
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage Brazos Presbyterian Homes Inc., Series B:      
7.00%, 1/01/43  $380   $387,019 
7.00%, 1/01/48   500    505,235 
County of Harris Texas-Houston Sports Authority, Refunding RB (NPFGC) (c):          
CAB, Junior Lien, Series H, 0.00%, 11/15/35   5,000    1,168,350 
CAB, Senior Lien, Series A, 0.00%, 11/15/38   12,580    2,639,158 
Third Lien, Series A-3, 0.00%, 11/15/37   26,120    5,219,560 
County of Matagorda Texas Navigation District No. 1, Refunding RB, AEP Texas Central Co. Project, Series 1, 4.00%, 6/01/30   2,120    1,927,144 
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A (c):          
0.00%, 9/15/40   9,780    2,610,673 
0.00%, 9/15/41   5,420    1,333,374 
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45   7,930    9,098,327 
Dallas-Fort Worth International Airport, Refunding ARB, Joint Improvement, Series E, AMT, 5.00%, 11/01/35   3,535    3,560,912 
Fort Bend County Industrial Development Corp., RB, NRG Energy Project, Series B, 4.75%, 11/01/42   2,045    1,816,492 
North Texas Tollway Authority, Refunding RB, 2nd Tier System, Series F, 6.13%, 1/01/31   12,180    12,953,795 
San Antonio Energy Acquisition Public Facility Corp., RB, Gas Supply, 5.50%, 8/01/25   6,540    7,290,203 
Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/32   2,835    2,842,881 
            
Municipal Bonds  Par
(000)		  Value
Texas (concluded)          
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:          
LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40  $6,000   $6,628,920 
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39   6,500    7,094,685 
         98,144,666 
Utah  — 1.3%          
County of Utah Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43   3,940    4,095,748 
Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy, Series A:          
3.25%, 10/15/36   1,940    1,491,492 
3.25%, 10/15/42   3,010    2,192,875 
         7,780,115 
Virginia  — 1.5%          
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings LLC Project, AMT:          
5.25%, 1/01/32   3,155    3,154,842 
6.00%, 1/01/37   5,695    5,950,763 
         9,105,605 
Washington  — 0.8%          
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45   4,420    4,708,272 
Wisconsin  — 0.3%          
Wisconsin State Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33   1,640    1,728,232 
Total Municipal Bonds — 125.9%        766,959,910 
BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 20147
 
Schedule of Investments (continued) BlackRock Municipal Income Trust (BFK)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (i)  Par
(000)		  Value
Alabama  — 0.8%          
City of Birmingham Alabama Special Care Facilities Financing Authority, Refunding RB, Ascension Health, Senior Credit, Series C-2, 5.00%, 11/15/36  $4,548   $4,605,671 
California  — 5.5%          
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (j)   5,115    5,596,168 
City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/39   18,540    19,738,240 
Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32   4,500    4,821,570 
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33   3,260    3,660,049 
         33,816,027 
Colorado  — 2.1%          
Colorado Health Facilities Authority, RB, Catholic Health (AGM):          
Series C-3, 5.10%, 10/01/41   7,600    7,721,068 
Series C-7, 5.00%, 9/01/36   4,860    4,939,558 
         12,660,626 
Connecticut  — 3.3%          
Connecticut State Health & Educational Facility Authority, RB, Yale University:          
Series T-1, 4.70%, 7/01/29   9,397    10,083,455 
Series X-3, 4.85%, 7/01/37   9,366    10,000,685 
         20,084,140 
Florida  — 1.1%          
County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34   6,629    7,001,353 
Massachusetts  — 2.0%          
Massachusetts School Building Authority, RB, Senior Dedicated Sales Tax, Series B, 5.00%, 10/15/41   4,427    4,702,158 
            
Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (i)		  Par
(000)		  Value
Massachusetts (concluded)          
Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41  $6,770   $7,203,416 
         11,905,574 
New Hampshire  — 0.7%          
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (j)   3,988    4,428,900 
New York  — 9.9%          
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System 2nd General Resolution:          
Series FF-2, 5.50%, 6/15/40   3,075    3,310,770 
Series HH, 5.00%, 6/15/31 (j)   16,393    17,811,391 
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (j)   3,130    3,381,971 
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43   20,865    22,190,136 
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (j)   12,610    13,600,642 
         60,294,910 
Texas  — 3.1%          
City of San Antonio Texas, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43   4,900    5,138,826 
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41   6,650    7,052,591 
University of Texas System, Refunding RB, Financing System, Series B, 5.00%, 8/15/43   6,001    6,427,128 
         18,618,545 
Utah  — 1.2%          
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41   7,150    7,380,542 
BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 20148
 
Schedule of Investments (continued) BlackRock Municipal Income Trust (BFK)
  (Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (i)		  Par
(000)		  Value
Virginia  — 1.9%          
University of Virginia, Refunding RB, General, 5.00%, 6/01/40  $10,767   $11,732,960 
Washington  — 3.6%          
Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32   5,459    5,837,716 
State of Washington, GO, Various Purposes, Series E, 5.00%, 2/01/34   14,487    15,944,651 
         21,782,367 
Total Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts — 35.2%		        214,311,615 
Total Long-Term Investments
(Cost — $961,498,985) — 161.1%		        981,271,525 

 

Short-Term Securities  Shares  Value
FFI Institutional Tax-Exempt Fund, 0.03% (k)(l)   12,600,015   $12,600,015 
Total Short-Term Securities
(Cost — $12,600,015) — 2.0%		        12,600,015 
Total Investments
(Cost — $974,099,000) — 163.1%		        993,871,540 
Other Assets Less Liabilities — 2.0%        12,269,925 
Liability for TOB Trust Certificates, Including Interest Expense
and Fees Payable — (20.7%)		       (126,096,745)
VMTP Shares, at Liquidation Value — (44.4%)      (270,800,000)
Net Assets Applicable to Common Shares — 100.0%       $609,244,720 
* As of January 31, 2014, gross unrealized appreciation and depreciation based on cost for federal income
  tax purposes were as follows: 		 
Tax cost      $850,532,246 
Gross unrealized appreciation      $44,658,327 
Gross unrealized depreciation        (27,391,959)
Net unrealized appreciation        $17,266,368 
 

Notes to Schedule of Investments

 

(a)Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(b)Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)Zero-coupon bond.
(d)US 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.
(e)Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(f)Non-income producing security.
(g)Represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.
(h)Variable rate security. Rate shown is as of report date.
(i)Represent bonds transferred to a TOB. In exchange the Trust acquired residual interest certificates. These bonds serve as collateral in a financing transaction.
(j)All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016 to November 15, 2019 is $25,997,599.
(k)Investments in issuers considered to be an affiliate of the Trust during the period ended January 31, 2014, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate  Shares
Held at
April 30, 2013		  Net
Activity		  Shares
Held at
January 31, 2014		  Income
FFI Institutional Tax-Exempt Fund   2,673,310    9,926,705   12,600,015  $3,079 

 

(l)Represents the current yield as of report date.
BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 20149
 
Schedule of Investments (continued) BlackRock Municipal Income Trust (BFK)

 

Portfolio Abbreviations

 

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

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

 

•Financial futures contracts outstanding as of January 31, 2014 were as follows:

 

Contracts
Sold		   Issue  Exchange  Expiration  Notional
Value		  Unrealized
Depreciation
(564)  10-Year US Treasury Note  Chicago Board of Trade   March 2014   $70,923,000   $(746,533)

 

•Fair Value Measurements – Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:
•Level 1 – unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access
•Level 2 – other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•Level 3 – unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust's own assumptions used in determining the fair value of investments and derivative financial instruments)

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

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

 

BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 201410
 

 

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

 

The following tables summarize the Trust's investments and derivative financial instruments categorized in the disclosure hierarchy as of January 31, 2014:

    Level 1   Level 2  Level 3  Total
Assets:                      
Investments:                     
    Long-Term Investments 1   —   $981,271,525    —   $981,271,525 
    Short-Term Securities   $12,600,015    —    —    12,600,015 
Total  $12,600,015   $981,271,525    —   $993,871,540 

 

   Level 1  Level 2  Level 3  Total
Derivative Financial Instruments 2
Liabilities:                     
Interest rate contracts   $(746,533)   —    —   $(746,533)

 

1See above Schedule of Investments for values in each state or political subdivision.
2Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Trust's assets and/or liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of January 31, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1  Level 2  Level 3  Total
Assets:                       
   Cash pledged for financial futures contracts    $ 903,300   —    —   $903,300 
Liabilities:                       
   TOB trust certificates      —  $(126,072,926)   —    (126,072,926)
   VRDP Shares      —   (270,800,000)   —    (270,800,000)
Total    $ 903,300  $(396,872,926)   —   $(395,969,626)

 

There were no transfers between levels during the period ended January 31, 2014.

 

 

BLACKROCK MUNICIPAL INCOME TRUSTJANUARY 31, 201411
 
Item 2 – Controls and Procedures
2(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the ″1940 Act″)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3 – Exhibits
  Certifications – Attached hereto
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
     
  BlackRock Municipal Income Trust
     
  By: /s/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Trust
     
  Date: March 25, 2014
     
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
     
  By: /s/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Trust
     
  Date: March 25, 2014
     
  By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Trust
     
  Date: March 25, 2014