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: 04/30/2013
Date of reporting period: 01/31/2013
Item 1 – Schedule of Investments
| Schedule of Investments January 31, 2013 (Unaudited) |
BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| Par (000) |
Value | ||||||||||
| Municipal Bonds | |||||||||||
| Alabama — 1.1% | |||||||||||
| Alabama State Docks Department, Refunding RB, 6.00%, 10/01/40 | $ | 4,080 | $ | 4,784,412 | |||||||
| County of Jefferson Alabama, RB, Series A, 5.25%, 1/01/19 | 2,910 | 2,910,116 | |||||||||
| 7,694,528 | |||||||||||
| Arizona — 3.3% | |||||||||||
| Salt Verde Financial Corp., RB: | |||||||||||
| 5.00%, 12/01/32 | 10,030 | 11,620,958 | |||||||||
| 5.00%, 12/01/37 | 9,460 | 10,858,756 | |||||||||
| 22,479,714 | |||||||||||
| California — 17.0% | |||||||||||
| Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/44 | 4,445 | 5,159,667 | |||||||||
|
California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, 11.06%, 6/01/55 (a) |
17,855 | 187,656 | |||||||||
| California Health Facilities Financing Authority, RB: | |||||||||||
| Stanford Hospital and Clinics, Series A, 5.00%, 8/15/51 | 2,305 | 2,581,323 | |||||||||
| Sutter Health, Series B, 6.00%, 8/15/42 | 6,230 | 7,487,276 | |||||||||
| California Pollution Control Financing Authority, RB: | |||||||||||
| Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 7/01/37 | 2,015 | 2,110,491 | |||||||||
| Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 | 5,035 | 5,234,185 | |||||||||
| San Diego County Water Authority Desalination Project Pipeline, 5.00%, 11/21/45 | 2,415 | 2,467,647 | |||||||||
| California State Public Works Board, RB, Various Capital Projects, Sub-Series 1, 6.38%, 11/01/34 | 2,315 | 2,839,857 | |||||||||
| California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42 | 3,680 | 4,130,984 | |||||||||
| California Statewide Communities Development Authority, Refunding RB, Episcopal Communities & Service: | |||||||||||
| 5.00%, 5/15/42 | 830 | 905,256 | |||||||||
| 5.00%, 5/15/47 | 705 | 764,333 | |||||||||
| City of Los Angeles Department of Airports, Refunding RB, Series A, 5.25%, 5/15/39 | 1,560 | 1,770,257 | |||||||||
| Par (000) |
Value | ||||||||||
| Municipal Bonds | |||||||||||
| California (concluded) | |||||||||||
| Foothill Eastern Transportation Corridor Agency California, Refunding RB, CAB (a): | |||||||||||
| 6.06%, 1/15/32 | $ | 54,635 | $ | 17,612,138 | |||||||
| 6.09%, 1/15/38 | 75,000 | 16,782,750 | |||||||||
| Foothill-De Anza Community College District, GO, Series C, 5.00%, 8/01/40 | 7,000 | 7,964,740 | |||||||||
| 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 | 5,073,450 | |||||||||
| San Marcos Unified School District, GO, CAB, Election of 2010, Series B (a): | |||||||||||
| 4.59%, 8/01/34 | 3,500 | 1,319,255 | |||||||||
| 4.68%, 8/01/36 | 4,000 | 1,348,720 | |||||||||
| State of California, GO: | |||||||||||
| 6.00%, 3/01/33 | 4,970 | 6,180,245 | |||||||||
| 6.50%, 4/01/33 | 20,410 | 25,377,794 | |||||||||
| 117,298,024 | |||||||||||
| Colorado — 2.0% | |||||||||||
| City of Colorado Springs Colorado, RB, Subordinate Lien, Improvement, Series C (AGM), 5.00%, 11/15/45 | 2,115 | 2,304,335 | |||||||||
| Colorado Health Facilities Authority, Refunding RB: | |||||||||||
| Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42 | 3,450 | 3,707,991 | |||||||||
| Catholic Health Initiatives, Series A, Series A, 5.50%, 7/01/34 | 4,205 | 4,814,346 | |||||||||
| Park Creek Metropolitan District Colorado, Refunding RB, Senior, Limited Tax, Property Tax, 5.50%, 12/01/37 | 2,530 | 2,671,984 | |||||||||
| 13,498,656 | |||||||||||
| Connecticut — 0.4% | |||||||||||
| Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, 5.00%, 11/15/40 | 2,710 | 3,039,428 | |||||||||
| Delaware — 1.6% | |||||||||||
| County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40 | 2,225 | 2,516,008 | |||||||||
| Delaware State EDA, RB, Exempt Facilities, Indian River Power, 5.38%, 10/01/45 | 7,950 | 8,508,010 | |||||||||
| 11,024,018 | |||||||||||
| BLACKROCK MUNICIPAL INCOME TRUST | JANUARY 31, 2013 1 |
| Schedule of Investments (continued) |
BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| Par (000) |
Value | |||||||||
| Municipal Bonds | ||||||||||
| District of Columbia — 4.0% | ||||||||||
| District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 5/15/40 | $ | 23,035 | $ | 23,956,170 | ||||||
| Metropolitan Washington Airports Authority, Refunding RB, First Senior Lien, Series A: | ||||||||||
| 5.00%, 10/01/39 | 990 | 1,089,930 | ||||||||
| 5.25%, 10/01/44 | 2,465 | 2,733,315 | ||||||||
| 27,779,415 | ||||||||||
| Florida — 5.2% | ||||||||||
| County of Miami-Dade Florida, Refunding RB, Miami International Airport, Series A-1, 5.38%, 10/01/41 | 2,280 | 2,598,881 | ||||||||
| Highlands County Florida Health Facilities Authority, Refunding RB, Series 2006-G, 5.13%, 11/15/32 (b) | 1,000 | 1,109,510 | ||||||||
| Miami Beach Health Facilities Authority, RB, Mount Sinai Medical Center of Florida, 6.75%, 11/15/21 | 6,075 | 6,615,250 | ||||||||
| Mid-Bay Bridge Authority, RB, Series A, 7.25%, 10/01/40 | 4,450 | 5,687,945 | ||||||||
| Orange County Health Facilities Authority, Refunding RB, Mayflower Retirement Center: | ||||||||||
| 5.00%, 6/01/32 | 600 | 638,196 | ||||||||
| 5.00%, 6/01/36 | 125 | 132,414 | ||||||||
| 5.13%, 6/01/42 | 1,925 | 2,044,831 | ||||||||
| Stevens Plantation Community Development District, Special Assessment Bonds, Series A, 7.10%, 5/01/35 (c)(d) | 3,590 | 2,693,721 | ||||||||
| Tampa-Hillsborough County Expressway Authority, Refunding RB: | ||||||||||
| Series A, 5.00%, 7/01/42 | 2,695 | 3,046,859 | ||||||||
| Series B, 5.00%, 7/01/42 | 4,925 | 5,496,398 | ||||||||
| Village Community Development District No. 6, Special Assessment Bonds, 5.63%, 5/01/13 (e) | 5,405 | 5,440,619 | ||||||||
| 35,504,624 | ||||||||||
| Georgia — 1.7% | ||||||||||
| DeKalb Private Hospital Authority, Refunding RB, Children's Healthcare, 5.25%, 11/15/39 | 1,650 | 1,832,523 | ||||||||
| Metropolitan Atlanta Rapid Transit Authority, RB, Third Series, 5.00%, 7/01/39 | 5,000 | 5,757,100 | ||||||||
| Richmond County Development Authority, Refunding RB, International Paper Co. Project, Series A, AMT, 6.00%, 2/01/25 | 4,000 | 4,014,040 | ||||||||
| 11,603,663 | ||||||||||
| Par (000) |
Value | |||||||||
| Municipal Bonds | ||||||||||
| Hawaii — 0.5% | ||||||||||
| State of Hawaii Harbor System, RB, Series A, 5.25%, 7/01/30 | $ | 2,660 | $ | 3,107,252 | ||||||
| Illinois — 10.7% | ||||||||||
| Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39 | 4,110 | 4,804,631 | ||||||||
| Chicago Illinois Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40 | 2,055 | 2,353,016 | ||||||||
| City of Chicago Illinois, GARB, O'Hare International Airport, Third Lien, Series C, 6.50%, 1/01/41 | 11,385 | 14,722,513 | ||||||||
| City of Chicago Illinois, GO, Project, Series A: | ||||||||||
| 5.00%, 1/01/33 | 4,435 | 4,951,456 | ||||||||
| 5.00%, 1/01/34 | 4,430 | 4,938,653 | ||||||||
| City of Chicago Illinois, Sales Tax Revenue, Refunding RB, Series A, 5.25%, 1/01/38 | 1,605 | 1,851,721 | ||||||||
| Illinois Finance Authority, RB, Advocate Health Care, Series C, 5.38%, 4/01/44 | 10,630 | 11,794,835 | ||||||||
| Illinois Finance Authority, Refunding RB: | ||||||||||
| Ascension Health, Series A, 5.00%, 11/15/37 | 1,895 | 2,154,444 | ||||||||
| Ascension Health, Series A, 5.00%, 11/15/42 | 3,450 | 3,894,119 | ||||||||
| Central Dupage Health, Series B, 5.50%, 11/01/39 | 3,160 | 3,587,643 | ||||||||
| Friendship Village Schaumburg, Series A, 5.63%, 2/15/37 | 470 | 473,581 | ||||||||
| Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project (AGM): | ||||||||||
| Series B, 5.00%, 6/15/50 | 3,905 | 4,266,642 | ||||||||
| Series B-2, 5.00%, 6/15/50 | 6,155 | 6,727,107 | ||||||||
| Railsplitter Tobacco Settlement Authority, RB: | ||||||||||
| 5.50%, 6/01/23 | 2,625 | 3,122,858 | ||||||||
| 6.00%, 6/01/28 | 2,245 | 2,696,043 | ||||||||
| State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34 | 1,240 | 1,420,804 | ||||||||
| 73,760,066 | ||||||||||
| Indiana — 2.8% | ||||||||||
| Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A: | ||||||||||
| 4.00%, 8/01/35 | 2,215 | 2,336,869 | ||||||||
| 4.00%, 8/01/38 | 3,555 | 3,718,103 | ||||||||
| City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village, 6.25%, 1/01/24 | 1,815 | 1,116,171 | ||||||||
| BLACKROCK MUNICIPAL INCOME TRUST | JANUARY 31, 2013 2 |
| Schedule of Investments (continued) |
BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| Par (000) |
Value | |||||||||
| Municipal Bonds | ||||||||||
| Indiana (concluded) | ||||||||||
| Indiana Finance Authority, RB: | ||||||||||
| First Lien, CWA Authority, Series A, 5.25%, 10/01/38 | $ | 3,080 | $ | 3,569,628 | ||||||
| Sisters of St. Francis Health, 5.25%, 11/01/39 | 1,655 | 1,827,683 | ||||||||
| Indiana Finance Authority, Refunding RB, 5.00%, 5/01/42 | 3,695 | 4,068,306 | ||||||||
| Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39 | 2,150 | 2,575,807 | ||||||||
| 19,212,567 | ||||||||||
| Iowa — 1.0% | ||||||||||
| Iowa Finance Authority, RB, Alcoa, Inc. Project, 4.75%, 8/01/42 | 2,265 | 2,301,376 | ||||||||
| Iowa Student Loan Liquidity Corp., Refunding RB, Senior Series A-1, AMT, 5.15%, 12/01/22 | 3,830 | 4,405,419 | ||||||||
| 6,706,795 | ||||||||||
| Kansas — 0.5% | ||||||||||
| Kansas Development Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 5.00%, 1/01/40 | 3,275 | 3,578,592 | ||||||||
| Kentucky — 0.3% | ||||||||||
| Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40 | 1,490 | 1,775,484 | ||||||||
| Louisiana — 3.0% | ||||||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35 | 6,535 | 7,738,355 | ||||||||
| Louisiana Stadium & Exposition District, Refunding RB, Senior, Series A, 5.00%, 7/01/36 | 685 | 783,030 | ||||||||
| Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A, 5.13%, 6/01/37 | 4,340 | 4,637,290 | ||||||||
| State of Louisiana Gasoline & Fuels Tax Revenue, RB, Second Lien, Series B, 5.00%, 5/01/45 | 6,355 | 7,187,124 | ||||||||
| 20,345,799 | ||||||||||
| Maine — 0.3% | ||||||||||
| Maine State Turnpike Authority, RB, Series A, 5.00%, 7/01/42 | 1,715 | 1,973,262 | ||||||||
| Maryland — 1.2% | ||||||||||
| Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35 | 855 | 976,059 | ||||||||
| Par (000) |
Value | |||||||||
| Municipal Bonds | ||||||||||
| Maryland (concluded) | ||||||||||
| Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25 | $ | 1,760 | $ | 1,965,797 | ||||||
| Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community, 6.25%, 1/01/41 | 4,295 | 4,926,236 | ||||||||
| Montgomery County Housing Opportunities Commission, RB, Series D, AMT, 5.50%, 1/01/38 | 510 | 531,548 | ||||||||
| 8,399,640 | ||||||||||
| Massachusetts — 0.6% | ||||||||||
| Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare, Series J1, 5.00%, 7/01/39 | 3,535 | 3,869,164 | ||||||||
| Michigan — 2.5% | ||||||||||
| City of Detroit Michigan Water Supply System, RB, Senior Lien, Series A, 5.25%, 7/01/41 | 6,015 | 6,502,997 | ||||||||
| Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36 | 2,700 | 2,996,919 | ||||||||
| Lansing Board of Water & Light Utilities System, RB, Series A, 5.50%, 7/01/41 | 2,870 | 3,400,118 | ||||||||
| Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, Series A, 5.25%, 11/15/46 | 4,230 | 4,489,679 | ||||||||
| 17,389,713 | ||||||||||
| Mississippi — 2.0% | ||||||||||
| City of Gulfport Mississippi, RB, Memorial Hospital at Gulfport Project, Series A, 5.75%, 7/01/31 | 14,025 | 14,048,422 | ||||||||
| Missouri — 0.3% | ||||||||||
| Missouri State Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Home, 5.50%, 2/01/42 | 2,035 | 2,182,538 | ||||||||
| Multi-State — 2.5% | ||||||||||
| Centerline Equity Issuer Trust, 6.80%, 10/31/52 (f)(g) | 16,000 | 17,371,360 | ||||||||
| Nebraska — 1.3% | ||||||||||
| Central Plains Energy Project Nebraska, RB, Gas Project No. 3: | ||||||||||
| 5.25%, 9/01/37 | 1,610 | 1,819,703 | ||||||||
| 5.00%, 9/01/42 | 2,815 | 3,087,323 | ||||||||
| BLACKROCK MUNICIPAL INCOME TRUST | JANUARY 31, 2013 3 |
| Schedule of Investments (continued) |
BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| Par (000) |
Value | |||||||||
| Municipal Bonds | ||||||||||
| Nebraska (concluded) | ||||||||||
| Douglas County Hospital Authority No. 2, Refunding RB, Health Facilities, Immanuel Obligation Group, 5.63%, 1/01/40 | $ | 3,280 | $ | 3,689,770 | ||||||
| Lancaster County Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, 5.63%, 1/01/40 | 600 | 674,958 | ||||||||
| 9,271,754 | ||||||||||
| Nevada — 0.7% | ||||||||||
| County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29 | 4,550 | 4,975,880 | ||||||||
| New Jersey — 6.4% | ||||||||||
| Middlesex County Improvement Authority, RB, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (c)(d) | 3,680 | 273,939 | ||||||||
| New Jersey EDA, RB, Continental Airlines Inc. Project, AMT: | ||||||||||
| 6.25%, 9/15/29 | 3,830 | 3,903,038 | ||||||||
| 7.00%, 11/15/30 (b) | 15,410 | 15,467,634 | ||||||||
| New Jersey EDA, Refunding RB: | ||||||||||
| 5.00%, 6/15/24 | 1,905 | 2,204,752 | ||||||||
| Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28 | 8,000 | 9,606,880 | ||||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A, 5.50%, 6/15/41 | 8,000 | 9,297,040 | ||||||||
| Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 4.50%, 6/01/23 | 3,080 | 3,072,269 | ||||||||
| 43,825,552 | ||||||||||
| New York — 6.9% | ||||||||||
| Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35 (c)(d) | 1,820 | 272,891 | ||||||||
| Metropolitan Transportation Authority, RB, Series E, 5.00%, 11/15/42 | 1,055 | 1,193,564 | ||||||||
| Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.25%, 11/15/40 | 2,375 | 2,687,194 | ||||||||
| New York City Industrial Development Agency, RB, American Airlines Inc., JFK International Airport, AMT (c)(d): | ||||||||||
| 8.00%, 8/01/28 | 5,000 | 5,765,300 | ||||||||
| 7.75%, 8/01/31 | 22,140 | 25,458,786 | ||||||||
| New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49 | 2,400 | 2,851,992 | ||||||||
| Par (000) |
Value | |||||||||
| Municipal Bonds | ||||||||||
| New York (concluded) | ||||||||||
| New York State Thruway Authority, Refunding RB, Series I, 5.00%, 1/01/42 | $ | 3,465 | $ | 3,902,456 | ||||||
| Port Authority of New York & New Jersey, RB, JFK International Air Terminal: | ||||||||||
| 6.00%, 12/01/36 | 2,525 | 3,001,669 | ||||||||
| 6.00%, 12/01/42 | 1,960 | 2,330,009 | ||||||||
| 47,463,861 | ||||||||||
| North Carolina — 3.8% | ||||||||||
| Gaston County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35 | 12,130 | 11,250,939 | ||||||||
| North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/38 | 10,000 | 11,665,800 | ||||||||
| North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/42 | 2,750 | 3,059,155 | ||||||||
| 25,975,894 | ||||||||||
| Ohio — 3.0% | ||||||||||
| County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38 | 6,125 | 6,875,864 | ||||||||
| County of Hamilton Ohio, RB, Christ Hospital Project, 5.00%, 6/01/42 | 3,580 | 3,867,975 | ||||||||
| County of Montgomery Ohio, Refunding RB, Catholic Healthcare, Series A, 5.00%, 5/01/39 | 5,450 | 5,889,161 | ||||||||
| Pinnacle Community Infrastructure Financing Authority, RB, Facilities, Series A, 6.25%, 12/01/36 | 3,760 | 3,796,434 | ||||||||
| 20,429,434 | ||||||||||
| Oregon — 0.1% | ||||||||||
| City of Tigard Washington County Oregon, Refunding RB, Water System, 5.00%, 8/01/37 | 495 | 574,977 | ||||||||
| Pennsylvania — 0.9% | ||||||||||
| Allegheny County Hospital Development Authority, Refunding RB, Health System, West Penn, Series A, 5.38%, 11/15/40 | 2,255 | 1,916,705 | ||||||||
| Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project, 5.00%, 11/15/40 | 3,725 | 4,157,547 | ||||||||
| 6,074,252 | ||||||||||
| BLACKROCK MUNICIPAL INCOME TRUST | JANUARY 31, 2013 4 |
| Schedule of Investments (continued) |
BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| Par (000) |
Value | |||||||||
| Municipal Bonds | ||||||||||
| Puerto Rico — 3.8% | ||||||||||
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.50%, 8/01/44 | $ | 10,900 | $ | 12,372,808 | ||||||
| Puerto Rico Sales Tax Financing Corp., RB, CAB, Series A (a): | ||||||||||
| 5.71%, 8/01/33 | 11,400 | 3,593,280 | ||||||||
| 5.87%, 8/01/36 | 40,000 | 10,270,400 | ||||||||
| 26,236,488 | ||||||||||
| South Carolina — 1.8% | ||||||||||
| South Carolina Jobs-EDA, Refunding RB, Palmetto Health Alliance, Series A, 6.25%, 8/01/31 | 5,075 | 5,218,115 | ||||||||
| South Carolina State Ports Authority, RB, 5.25%, 7/01/40 | 6,455 | 7,276,915 | ||||||||
| 12,495,030 | ||||||||||
| South Dakota — 0.3% | ||||||||||
| South Dakota Health and Educational Facilities Authority, RB, Sanford, Series E, 5.00%, 11/01/42 | 2,095 | 2,298,110 | ||||||||
| Tennessee — 0.1% | ||||||||||
| Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47 | 415 | 470,116 | ||||||||
| Texas — 16.8% | ||||||||||
| Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 | 4,370 | 781,225 | ||||||||
| Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.25%, 1/01/46 | 4,210 | 4,966,074 | ||||||||
| City of Austin Texas, Refunding RB, Water & Wastewater System Revenue, 5.00%, 11/15/37 | 1,235 | 1,443,122 | ||||||||
| City of Dallas Texas Waterworks & Sewer System, Refunding RB, Waterworks & Sewer System Revenue, 5.00%, 10/01/35 | 2,970 | 3,422,331 | ||||||||
| City of Houston Texas Airport System, Refunding RB, Senior Lien, Series A, 5.50%, 7/01/39 | 3,000 | 3,471,330 | ||||||||
| City of Houston Texas Utility System Revenue, Refunding RB, Combined First Lien, Series A (AGC), 6.00%, 11/15/35 | 16,425 | 20,017,476 | ||||||||
| Clifton Higher Education Finance Corp., RB, Idea Public Schools, 5.00%, 8/15/32 | 1,155 | 1,276,691 | ||||||||
| Dallas/Fort Worth International Airport, Refunding RB, Series E, AMT, 5.00%, 11/01/35 | 5,035 | 5,500,637 | ||||||||
| Fort Bend County Industrial Development Corp., RB, NRG Energy Project, Series B, 4.75%, 11/01/42 | 2,890 | 2,971,614 | ||||||||
| Par (000) |
Value | |||||||||
| Municipal Bonds | ||||||||||
| Texas (concluded) | ||||||||||
| Harris County-Houston Sports Authority, Refunding RB (NPFGC) (a): | ||||||||||
| CAB, Junior Lien, Series H, 5.87%, 11/15/35 | $ | 5,000 | $ | 1,337,550 | ||||||
| CAB, Senior Lien, Series A, 5.36%, 11/15/38 | 12,580 | 3,213,058 | ||||||||
| Third Lien, Series A-3, 5.91%, 11/15/37 | 26,120 | 6,167,715 | ||||||||
| Lower Colorado River Authority, Refunding RB: | ||||||||||
| (NPFGC), 5.00%, 5/15/13 (e) | 55 | 55,761 | ||||||||
| LCRA Transmission Services Project (AMBAC), 4.75%, 5/15/34 | 140 | 140,447 | ||||||||
| Series A (NPFGC), 5.00%, 5/15/13 (e) | 5 | 5,069 | ||||||||
| Midland County Fresh Water Supply District No 1, RB, City of Midland Project, Series A, CAB (a): | ||||||||||
| 4.77%, 9/15/40 | 9,780 | 2,658,302 | ||||||||
| 4.80%, 9/15/41 | 5,420 | 1,394,132 | ||||||||
| North Texas Tollway Authority, Refunding RB, Toll, Second Tier, Series F, 6.13%, 1/01/31 | 12,180 | 13,468,522 | ||||||||
| San Antonio Energy Acquisition Public Facility Corp., RB, Gas Supply, 5.50%, 8/01/25 | 6,540 | 7,704,643 | ||||||||
| Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45 | 7,930 | 9,406,804 | ||||||||
| Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/29 | 3,700 | 4,037,329 | ||||||||
| Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien: | ||||||||||
| Infrastructure, 7.00%, 6/30/40 | 6,000 | 7,299,840 | ||||||||
| NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 | 6,500 | 7,775,300 | ||||||||
| University of Texas System, Refunding RB, Financing System, Series B, 5.00%, 8/15/43 | 6,000 | 7,048,800 | ||||||||
| 115,563,772 | ||||||||||
| Utah — 1.3% | ||||||||||
| County of Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43 | 3,940 | 4,443,414 | ||||||||
| Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy: | ||||||||||
| 3.25%, 10/15/36 | 1,940 | 1,806,121 | ||||||||
| 3.25%, 10/15/42 | 3,010 | 2,721,100 | ||||||||
| 8,970,635 | ||||||||||
| BLACKROCK MUNICIPAL INCOME TRUST | JANUARY 31, 2013 5 |
| Schedule of Investments (continued) |
BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| Par (000) |
Value | |||||||||||
| Municipal Bonds | ||||||||||||
| Virginia — 2.0% | ||||||||||||
| City of Norfolk Virginia Parking System, Refunding RB, Series B (AMBAC), 5.50%, 2/01/31 | $ | 2,240 | $ | 2,242,733 | ||||||||
| Route 460 Funding Corp. of Virginia Toll Road, RB, Senior Lien, Series A, 5.13%, 7/01/49 | 1,685 | 1,842,581 | ||||||||||
| Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings, OPCP LLC Project, AMT: | ||||||||||||
| 5.25%, 1/01/32 | 3,155 | 3,456,618 | ||||||||||
| 6.00%, 1/01/37 | 3,580 | 4,115,855 | ||||||||||
| 5.50%, 1/01/42 | 2,255 | 2,462,640 | ||||||||||
| 14,120,427 | ||||||||||||
| Washington — 1.1% | ||||||||||||
| Washington Health Care Facilities Authority, RB, Swedish Health Services, Series A, 6.75%, 5/15/21 (e) | 3,900 | 5,486,832 | ||||||||||
| Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series A, 5.00%, 10/01/42 | 1,980 | 2,226,886 | ||||||||||
| 7,713,718 | ||||||||||||
| Wisconsin — 1.9% | ||||||||||||
| Wisconsin Health & Educational Facilities Authority, RB: | ||||||||||||
| Ascension Health Senior Care Group, 5.00%, 11/15/30 | 3,210 | 3,677,601 | ||||||||||
| Ascension Health Senior Care Group, 5.00%, 11/15/33 | 1,640 | 1,859,924 | ||||||||||
| Aurora Health, Senior Credit Group, 6.40%, 4/15/33 | 7,500 | 7,546,200 | ||||||||||
| 13,083,725 | ||||||||||||
| Total Municipal Bonds – 116.7% | 803,186,349 | |||||||||||
|
|
| |||||||||||
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (h) | ||||||||||||
| Alabama — 0.7% | ||||||||||||
| Alabama Special Care Facilities Financing Authority-Birmingham, Refunding RB, Ascension Health Senior Credit Group, Series C-2, 5.00%, 11/15/36 | 4,548 | 4,898,874 | ||||||||||
| Arizona — 0.8% | ||||||||||||
| Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/38 | 4,760 | 5,415,459 | ||||||||||
| Par (000) |
Value | |||||||||||
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (h) | ||||||||||||
| California — 7.9% | ||||||||||||
|
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (i) |
$ | 5,115 | $ | 5,989,307 | ||||||||
| City of Los Angeles California Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, 5.00%, 5/15/40 | 11,680 | 13,214,810 | ||||||||||
| Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32 | 4,500 | 5,146,155 | ||||||||||
| San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33 | 3,260 | 3,963,287 | ||||||||||
| San Francisco City & County Public Utilities Commission, RB, Series B, 5.00%, 11/01/39 | 18,540 | 21,038,080 | ||||||||||
| University of California, RB, Series C (NPFGC), 4.75%, 5/15/37 | 5,000 | 5,095,950 | ||||||||||
| 54,447,589 | ||||||||||||
| Colorado — 2.0% | ||||||||||||
| Colorado Health Facilities Authority, RB, Catholic Health: | ||||||||||||
| Series C-3 (AGM), 5.10%, 10/01/41 | 7,600 | 8,288,408 | ||||||||||
| Series C-7, 5.00%, 9/01/36 | 4,860 | 5,232,908 | ||||||||||
| 13,521,316 | ||||||||||||
| Connecticut — 3.1% | ||||||||||||
| Connecticut State Health & Educational Facility Authority, RB, Yale University: | ||||||||||||
| Series T-1, 4.70%, 7/01/29 | 9,400 | 10,569,266 | ||||||||||
| Series X-3, 4.85%, 7/01/37 | 9,366 | 10,582,409 | ||||||||||
| 21,151,675 | ||||||||||||
| Florida — 1.1% | ||||||||||||
| County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34 | 6,629 | 7,501,686 | ||||||||||
| Illinois — 0.9% | ||||||||||||
| City of Chicago Illinois Waterworks, Refunding RB, 5.00%, 11/01/42 | 5,617 | 6,352,939 | ||||||||||
| Maryland — 1.3% | ||||||||||||
| Maryland Health & Higher Educational Facilities Authority, RB, Ascension Health, Series B, 5.00%, 11/15/51 | 8,140 | 9,108,660 | ||||||||||
| Massachusetts — 2.6% | ||||||||||||
| Massachusetts School Building Authority, RB, Senior Series B, 5.00%, 10/15/41 | 8,860 | 10,215,757 | ||||||||||
| BLACKROCK MUNICIPAL INCOME TRUST | JANUARY 31, 2013 6 |
| Schedule of Investments (continued) |
BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets) |
| Par (000) |
Value | ||||||||||||
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (h) | |||||||||||||
| Massachusetts (concluded) | |||||||||||||
| Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41 | $ | 6,770 | $ | 7,626,337 | |||||||||
| 17,842,094 | |||||||||||||
| Michigan — 0.9% | |||||||||||||
| Detroit Water and Sewerage Department, Refunding RB, Senior Lien, Series A: | |||||||||||||
| 5.00%, 7/01/32 | 3,063 | 3,315,732 | |||||||||||
| 5.25%, 7/01/39 | 2,649 | 2,884,767 | |||||||||||
| 6,200,499 | |||||||||||||
| New Hampshire — 0.7% | |||||||||||||
| New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (i) | 3,988 | 4,693,730 | |||||||||||
| New Jersey — 0.8% | |||||||||||||
| New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 6/15/36 | 4,800 | 5,502,336 | |||||||||||
| New York — 13.0% | |||||||||||||
| Hudson New York Yards Infrastructure Corp., RB, Senior Series A, 5.75%, 2/15/47 | 3,130 | 3,734,733 | |||||||||||
| New York City Municipal Water Finance Authority, Refunding RB: | |||||||||||||
| Series FF-2, 5.50%, 6/15/40 | 3,074 | 3,628,631 | |||||||||||
| Water & Sewer System, Second General Resolution, Series HH, 5.00%, 6/15/31 (i) | 16,393 | 19,511,990 | |||||||||||
| New York City Transitional Finance Authority, RB, 5.00%, 2/01/42 | 4,799 | 5,514,424 | |||||||||||
| New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43 | 20,864 | 24,005,690 | |||||||||||
| New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 | 12,610 | 14,960,252 | |||||||||||
| New York State Dormitory Authority, ERB, Series F, 5.00%, 3/15/35 | 16,708 | 18,041,848 | |||||||||||
| 89,397,568 | |||||||||||||
| Texas — 1.1% | |||||||||||||
| Harris County Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41 | 6,650 | 7,616,976 | |||||||||||
| Par (000) |
Value | ||||||||||||
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (h) | |||||||||||||
| Utah — 1.1% | |||||||||||||
| City of Riverton Utah Hospital, RB, IHC Health Services Inc., 5.00%, 8/15/41 | $ | 7,153 | $ | 7,916,292 | |||||||||
| Virginia — 1.8% | |||||||||||||
| University of Virginia, Refunding RB, General, 5.00%, 6/01/40 | 10,767 | 12,415,491 | |||||||||||
| Washington — 3.3% | |||||||||||||
| Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32 | 5,459 | 6,188,957 | |||||||||||
| State of Washington, GO, Various Purpose, Series E, 5.00%, 2/01/34 | 14,487 | 16,858,536 | |||||||||||
| 23,047,493 | |||||||||||||
| Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 43.1% | 297,030,677 | ||||||||||||
| Total Long-Term Investments (Cost – $1,006,508,931) – 159.8% |
1,100,217,026 | ||||||||||||
|
|
| ||||||||||||
Shares |
|||||||||||||
| Short-Term Securities | |||||||||||||
| FFI Institutional Tax-Exempt Fund, 0.01% (j)(k) | 15,146,969 | 15,146,969 | |||||||||||
| Total Short-Term Securities (Cost – $15,146,969) – 2.2% |
15,146,969 | ||||||||||||
| Total Investments (Cost - $1,021,655,900*) – 162.0% | 1,115,363,995 | ||||||||||||
| Other Assets Less Liabilities – 1.0% | 7,116,842 | ||||||||||||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (23.7)% | (163,328,257) | ||||||||||||
| VMTP Shares, at Liquidation Value – (39.3)% | (270,800,000) | ||||||||||||
| Net Assets Applicable to Common Shares– 100.0% | $ | 688,352,580 | |||||||||||
| * |
As of January 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:
|
||||||||||||
| Tax cost | $ | 843,340,828 | |||||||||||
| Gross unrealized appreciation | $ | 106,131,210 | |||||||||||
| Gross unrealized depreciation | (12,504,772) | ||||||||||||
| Net unrealized appreciation | $ | 93,626,438 | |||||||||||
| Notes to Schedule of Investments | |
| (a) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
| (b) | Variable rate security. Rate shown is as of report date. |
| (c) | Issuer filed for bankruptcy and/or is in default of principal and/or interest payments. |
| (d) | Non-income producing security. |
| BLACKROCK MUNICIPAL INCOME TRUST | JANUARY 31, 2013 7 |
| Schedule of Investments (continued) | BlackRock Municipal Income Trust (BFK) |
| (e) | 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. | ||||||||||||||||||||||
| (f) | Security 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. | ||||||||||||||||||||||
| (g) | 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. | ||||||||||||||||||||||
| (h) | Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. | ||||||||||||||||||||||
| (i) | 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 is $16,995,956. | ||||||||||||||||||||||
| (j) | Investments in issuers considered to be an affiliate of the Trust during the period ended January 31, 2013, 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, 2012 |
Net Activity |
Shares Held at January 31, 2013 |
Income | |||||||||||||||||||
| FFI Institutional Tax-Exempt Fund | 12,181,066 | 2,965,903 | 15,146,969 | $ | 2,275 | ||||||||||||||||||
| (k) | Represents the current yield as of report date. | ||||||||||||||||||||||
|
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 Guaranty Corp. | ||||||||||||||||||||||
| AGM | Assured Guaranty Municipal Corp. | ||||||||||||||||||||||
| AMBAC | American Municipal Bond Assurance Corp. | ||||||||||||||||||||||
| AMT | Alternative Minimum Tax (subject to) | ||||||||||||||||||||||
| CAB | Capital Appreciation Bonds | ||||||||||||||||||||||
| EDA | Economic Development Authority | ||||||||||||||||||||||
| EDC | Economic Development Corp. | ||||||||||||||||||||||
| ERB | Education Revenue Bonds | ||||||||||||||||||||||
| GARB | General Airport Revenue Bonds | ||||||||||||||||||||||
| GO | General Obligation Bonds | ||||||||||||||||||||||
| NPFGC | National Public Finance Guarantee Corp. | ||||||||||||||||||||||
| RB | Revenue Bonds | ||||||||||||||||||||||
| BLACKROCK MUNICIPAL INCOME TRUST | JANUARY 31, 2013 8 |
| Schedule of Investments (concluded) | BlackRock Municipal Income Trust (BFK) |
| • | Fair Value Measurements - Various inputs are used in determining the fair value of investments. 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 and 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) | |||||||||||||||||||||||||||||||
| 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 level in the fair value hierarchy within which the fair value measurement falls in its entirety 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 is based on the pricing transparency of the investment 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 other significant accounting policies, please refer to the Trust's most recent financial statements as contained in its semi-annual report | ||||||||||||||||||||||||||||||||
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of January 31, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||
| Assets: | ||||||||||
| Investments: | ||||||||||
| Long-Term Investments1 | — | $ | 1,100,217,026 | — | $ | 1,100,217,026 | ||||
| Short-Term Securities | $ | 15,146,969 | — | — | 15,146,969 | |||||
| Total | $ | 15,146,969 | $ | 1,100,217,026 | — | $ | 1,115,363,995 | |||
1 See above Schedule of Investments for values in each state or political subdivision.
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of January 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
| Level 1 | Level 2 | Level 3 | Total | ||||||
| Liabilities: | |||||||||
| TOB trust certificates | — | $ | (163,249,760) | — | $ | (163,249,760) | |||
| VMTP shares | — | (270,800,000) | — | (270,800,000) | |||||
| Total | — | $ | (434,049,760) | — | $ | (434,049,760) | |||
There were no transfers between levels during the period ended January 31, 2013.
| BLACKROCK MUNICIPAL INCOME TRUST | JANUARY 31, 2013 9 |
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 26, 2013
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 26, 2013
| By: | /s/ Neal J. Andrews | |
| Neal J. Andrews | ||
| Chief Financial Officer (principal financial officer) of | ||
| BlackRock Municipal Income Trust |
Date: March 26, 2013