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: 811-21181
Name of Fund: BlackRock Municipal 2020 Term Trust (BKK)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal
2020 Term Trust, 55 East 52nd Street, New York, NY 10055
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 04/30/2018
Date of reporting period: 07/31/2017
Item 1 Schedule of Investments
Schedule of Investments July 31, 2017 (Unaudited) |
BlackRock Municipal 2020 Term Trust (BKK) (Percentages shown are based on Net Assets) |
BLACKROCK MUNICIPAL 2020 TERM TRUST | JULY 31, 2017 | 1 |
Schedule of Investments (continued) |
BlackRock Municipal 2020 Term Trust (BKK) |
2 | BLACKROCK MUNICIPAL 2020 TERM TRUST | JULY 31, 2017 |
Schedule of Investments (continued) |
BlackRock Municipal 2020 Term Trust (BKK) |
BLACKROCK MUNICIPAL 2020 TERM TRUST | JULY 31, 2017 | 3 |
Schedule of Investments (continued) |
BlackRock Municipal 2020 Term Trust (BKK) |
4 | BLACKROCK MUNICIPAL 2020 TERM TRUST | JULY 31, 2017 |
Schedule of Investments (continued) |
BlackRock Municipal 2020 Term Trust (BKK) |
BLACKROCK MUNICIPAL 2020 TERM TRUST | JULY 31, 2017 | 5 |
Schedule of Investments (continued) |
BlackRock Municipal 2020 Term Trust (BKK) |
6 | BLACKROCK MUNICIPAL 2020 TERM TRUST | JULY 31, 2017 |
Schedule of Investments (continued) |
BlackRock Municipal 2020 Term Trust (BKK) |
Notes to Schedule of Investments |
(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) | Zero-coupon bond. |
(d) | Non-income producing security. |
(e) | Issuer filed for bankruptcy and/or is in default. |
(f) | Security is collateralized by municipal bonds or U.S. Treasury obligations. |
(g) | Variable rate security. Rate shown is the rate in effect as of period end. |
(h) | 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. |
(i) | During the period ended July 31, 2017, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
Affiliate | Shares Held at April 30, 2017 |
Net Activity |
Shares Held at July 31, 2017 |
Value at July 31, 2017 |
Income |
Net Gain1 |
Change in Unrealized Appreciation (Depreciation) |
|||||||||||||||||||||
BlackRock Liquidity Funds, MuniCash, Institutional Class |
10 | 6,977,261 | 6,977,271 | $ | 6,980,061 | $ | 2,571 | $ | 571 | $ | 634 | |||||||||||||||||
1 Includes net capital gain distributions. |
|
(j) | Current yield as of period end. |
BLACKROCK MUNICIPAL 2020 TERM TRUST | JULY 31, 2017 | 7 |
Schedule of Investments (continued) |
BlackRock Municipal 2020 Term Trust (BKK) |
Portfolio Abbreviations |
AGC | Assured Guarantee Corp. | |||||||||
AGM | Assured Guaranty Municipal Corp. | |||||||||
AMBAC | American Municipal Bond Assurance Corp. | |||||||||
AMT | Alternative Minimum Tax (subject to) | |||||||||
ARB | Airport Revenue Bonds | |||||||||
BAM | Build America Mutual Assurance Co. | |||||||||
CAB | Capital Appreciation Bonds | |||||||||
COP | Certificates of Participation | |||||||||
COP | Colombian Peso | |||||||||
EDA | Economic Development Authority | |||||||||
EDC | Economic Development Corp. | |||||||||
GO | General Obligation Bonds | |||||||||
IDA | Industrial Development Authority | |||||||||
NPFGC | National Public Finance Guarantee Corp. | |||||||||
OTC | Over-the-Counter | |||||||||
RB | Revenue Bonds | |||||||||
S/F | Single-Family |
8 | BLACKROCK MUNICIPAL 2020 TERM TRUST | JULY 31, 2017 |
Schedule of Investments (concluded) |
BlackRock Municipal 2020 Term Trust (BKK) |
Fair Value Hierarchy as of Period End |
Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
| Level 1 Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access |
| Level 2 Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other marketcorroborated inputs) |
| Level 3 Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trusts 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 fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trusts policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trusts policy regarding valuation of investments, refer to the Trusts most recent financial statements as contained in its annual report.
The following tables summarize the Trusts investments categorized in the disclosure hierarchy:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
| |||||||||||||||
Investments: | ||||||||||||||||
Long-Term Investments1 |
| $ | 318,011,080 | | $ | 318,011,080 | ||||||||||
Short-Term Securities |
$ | 6,980,061 | | | 6,980,061 | |||||||||||
|
|
|||||||||||||||
Total |
$ | 6,980,061 | $ | 318,011,080 | | $ | 324,991,141 | |||||||||
|
|
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1 See above Schedule of Investments for values in each state or political subdivision. |
|
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, TOB Trust Certificates of $3,750,000 are categorized as Level 2 within the disclosure hierarchy.
During the period ended July 31, 2017, there were no transfers between levels.
BLACKROCK MUNICIPAL 2020 TERM TRUST | JULY 31, 2017 | 9 |
Item 2 Controls and Procedures
2(a) | The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants 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 registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrants 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 2020 Term Trust
By: |
/s/ John M. Perlowski | |
John M. Perlowski | ||
Chief Executive Officer (principal executive officer) of BlackRock Municipal 2020 Term Trust |
Date: September 25, 2017
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 2020 Term Trust |
Date: September 25, 2017
By: |
/s/ Neal J. Andrews | |
Neal J. Andrews | ||
Chief Financial Officer (principal financial officer) of BlackRock Municipal 2020 Term Trust |
Date: September 25, 2017
EX-99. CERT
CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF
THE SARBANES-OXLEY ACT OF 2002
I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock Municipal 2020 Term Trust, certify that:
1. I have reviewed this report on Form N-Q of BlackRock Municipal 2020 Term Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
d) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: September 25, 2017
/s/ John M. Perlowski |
John M. Perlowski |
Chief Executive Officer (principal executive officer) of BlackRock Municipal 2020 Term Trust |
EX-99. CERT
CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF
THE SARBANES-OXLEY ACT OF 2002
I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock Municipal 2020 Term Trust, certify that:
1. I have reviewed this report on Form N-Q of BlackRock Municipal 2020 Term Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
d) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: September 25, 2017
/s/ Neal J. Andrews |
Neal J. Andrews |
Chief Financial Officer (principal financial officer) of BlackRock Municipal 2020 Term Trust |