BlackRock Utility & Infrastructure Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-22606

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

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end:  12/31/2017

Date of reporting period:  09/30/2017

Item 1 – Schedule of Investments

Schedule of Investments September 30, 2017 (Unaudited)

 

   

BlackRock Utility and Infrastructure Trust (BUI)

(Percentages shown are based on Net Assets)

 

Common Stocks            Shares     Value  
Construction & Engineering — 3.6%  

Ferrovial SA (a)

         236,106     $ 5,202,319  

Vinci SA (a)

         80,050       7,605,799  
       

 

 

  
        12,808,118  
Electric Utilities — 32.5%  

American Electric Power Co., Inc. (a)

         96,220       6,758,493  

Duke Energy Corp. (a)

         133,268       11,183,851  

Edison International (a)

         108,740       8,391,466  

El Paso Electric Co. (a)

         36,680       2,026,570  

Enel SpA (a)

         2,947,617       17,757,360  

Eversource Energy (a)

         80,420       4,860,585  

Exelon Corp. (a)(b)

         304,560       11,472,775  

FirstEnergy Corp. (a)

         202,980       6,257,873  

Iberdrola SA (a)

         201,610       1,567,644  

NextEra Energy, Inc. (a)(b)

         222,950       32,673,322  

Pinnacle West Capital Corp. (a)

         46,720       3,950,643  

PPL Corp. (a)

         114,710       4,353,245  

Xcel Energy, Inc. (a)

         91,150       4,313,218  
       

 

 

  
        115,567,045  
Gas Utilities — 2.3%  

Italgas SpA (a)

         679,900       3,816,977  

New Jersey Resources Corp. (a)

         56,660       2,388,219  

Spire, Inc. (a)

         27,240       2,033,466  
       

 

 

  
        8,238,662  
Independent Power and Renewable Electricity Producers — 3.7%  

China Longyuan Power Group Corp. Ltd., Class H (a)

         7,228,000       5,411,459  

EDP Renovaveis SA (a)

         257,264       2,190,238  

NRG Yield, Inc., Class C (a)

         172,160       3,322,688  

Pattern Energy Group, Inc. (a)

         102,880       2,479,408  
       

 

 

  
        13,403,793  
Multi-Utilities — 21.1%  

CMS Energy Corp. (a)

         127,700       5,915,064  

Dominion Energy, Inc. (a)

         213,810       16,448,403  

DTE Energy Co. (a)

         46,620       5,005,123  

National Grid PLC (a)

         1,160,424       14,372,483  

NiSource, Inc. (a)

         133,100       3,406,029  

NorthWestern Corp. (a)

         45,522       2,592,023  

Public Service Enterprise Group, Inc. (a)

         239,616       11,082,240  

Sempra Energy (a)

         83,300       9,507,029  

Veolia Environnement SA (a)

         101,190       2,338,296  

WEC Energy Group, Inc. (a)

         70,180       4,405,901  
       

 

 

  
        75,072,591  
Oil, Gas & Consumable Fuels — 13.3%  

Antero Midstream Partners LP (a)

         75,740       2,388,082  

Dominion Midstream Partners LP (a)

         232,411       7,437,152  

Enbridge, Inc. (a)

         93,240       3,901,161  
Common Stocks            Shares     Value  
Oil, Gas & Consumable Fuels (continued)  

Energy Transfer Partners LP (a)

         276,869     $ 5,063,934  

Enterprise Products Partners LP (a)

         171,714       4,476,584  

EQT Midstream Partners LP (a)

         27,730       2,078,918  

Genesis Energy LP (a)

         111,299       2,932,729  

MPLX LP (a)

         104,589       3,661,661  

ONEOK, Inc. (a)

         69,851       3,870,444  

Plains All American Pipeline LP (a)

         195,890       4,150,909  

Shell Midstream Partners LP (a)

         192,551       5,360,620  

Targa Resources Corp. (a)

         44,430       2,101,539  
       

 

 

  
        47,423,733  
Transportation Infrastructure — 16.8%  

Abertis Infraestructuras SA (a)

         399,000       8,066,569  

Aeroports de Paris (a)

         24,070       3,891,037  

Atlantia SpA (a)

         523,924       16,554,775  

Flughafen Zuerich AG (a)

         14,110       3,193,299  

Fraport AG Frankfurt Airport Services Worldwide (a)

         28,930       2,749,702  

Groupe Eurotunnel SE, Registered Shares (a)

         356,050       4,292,320  

Japan Airport Terminal Co. Ltd. (a)

         63,100       2,248,235  

Sydney Airport (a)(c)

         1,482,826       8,280,883  

Transurban Group (a)(c)

         1,112,890       10,392,495  
       

 

 

  
        59,669,315  
Water Utilities — 1.6%  

American Water Works Co., Inc. (a)

               70,220       5,681,500  

Total Long-Term Investments

(Cost — $260,199,663) — 94.9%

 

 

     337,864,757  
       
                           
Short-Term Securities  

BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.91% (d)(e)

               15,177,910       15,177,910  

Total Short-Term Securities

(Cost — $15,177,910) — 4.3%

 

 

     15,177,910  

Total Investments Before Options Written

(Cost — $275,377,573) — 99.2%

 

 

     353,042,667  

Options Written

(Premiums Received — $2,078,893) — (0.4)%

 

 

     (1,374,236 ) 

Total Investments, Net of Options Written

(Cost — $273,298,680) — 98.8%

 

 

     351,668,431  

Other Assets Less Liabilities — 1.2%

 

     4,205,438  
       

 

 

  

Net Assets — 100.0%

 

   $ 355,873,869  
       

 

 

  
 

 

     
                
   BLACKROCK UTILITY AND INFRASTRUCTURE TRUST    SEPTEMBER 30, 2017    1

Schedule of Investments (continued)

   

BlackRock Utility and Infrastructure Trust (BUI)

 

 

Notes to Schedule of Investments

 

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

 

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

 

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

 

(d)   Annualized 7-day yield as of period end.

 

(e)   During the period ended September 30, 2017, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate  

Shares Held

at December 31,
2016

     Net
Activity		    

Shares Held

at September 30,
2017

    

Value at
September 30,

2017

     Income     Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, T-Fund, Institutional Class

     4,151,064       11,026,846       15,177,910     $ 15,177,910     $ 22,781       —       —  

SL Liquidity Series, LLC, Money Market Series

     456,105       (456,105 )      —       —       4,125 1      —     $ (45 ) 
        $ 15,177,910     $ 26,906       —     $ (45 ) 
       

 

 

  

 

1   

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

 

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

 

Derivative Financial Instruments Outstanding as of Period End

 

Exchange-Traded Options Written  
Description   Number of
Contracts		       

Expiration

Date

     

Exercise

Price

       

Notional
Amount

(000)

     Value  

Call

 

NiSource, Inc.

     97        10/03/17        USD       26.85          USD       248       —  

Enterprise Products Partners LP

     444        10/13/17        USD       26.20          USD       1,158     $ (12,409 ) 

Spire, Inc.

     95        10/17/17        USD       76.50          USD       709       (2,867 ) 

DTE Energy Co.

     63        10/20/17        USD       110.30          USD       676       (1,858 ) 

Dominion Energy, Inc.

     748        10/20/17        USD       80.25          USD       5,754       (4,413 ) 

Duke Energy Corp.

     308        10/20/17        USD       87.50          USD       2,585       (3,080 ) 

EQT Midstream Partners LP

     97        10/20/17        USD       75.00          USD       727       (9,700 ) 

Enbridge, Inc.

     176        10/20/17        USD       42.50          USD       736       (3,960 ) 

Eversource Energy

     124        10/20/17        USD       63.25          USD       749       (693 ) 

Exelon Corp.

     420        10/20/17        USD       38.00          USD       1,582       (15,750 ) 

FirstEnergy Corp.

     180        10/20/17        USD       33.00          USD       555       (900 ) 

FirstEnergy Corp.

     90        10/20/17        USD       32.00          USD       277       (900 ) 

Genesis Energy LP

     389        10/20/17        USD       27.50          USD       1,025       (6,808 ) 

MPLX LP

     126        10/20/17        USD       35.00          USD       441       (7,560 ) 

MPLX LP

     240        10/20/17        USD       36.00          USD       840       (5,400 ) 

NextEra Energy, Inc.

     278        10/20/17        USD       150.00          USD       4,074       (14,595 ) 

NiSource, Inc.

     100        10/20/17        USD       27.00          USD       256       (500 ) 

Northwestern Corp.

     160        10/20/17        USD       60.00          USD       911       (80,000 ) 

ONEOK, Inc.

     120        10/20/17        USD       55.00          USD       665       (14,100 ) 

PPL Corp.

     168        10/20/17        USD       39.00          USD       638       (1,680 ) 

 

     
                
2    BLACKROCK UTILITY AND INFRASTRUCTURE TRUST    SEPTEMBER 30, 2017   

Schedule of Investments (continued)

   

BlackRock Utility and Infrastructure Trust (BUI)

 

 

Exchange-Traded Options Written (continued)                                              
Description    Number of
Contracts		      Expiration
Date		      Exercise
Price		      Notional
Amount
(000)		     Value  

Call

                  

Pinnacle West Capital Corp.

      163        10/20/17        USD       90.00        USD       1,378     $ (1,630 ) 

Sempra Energy

      83        10/20/17        USD       120.00        USD       947       (830 ) 

Shell Midstream Partners LP

      261        10/20/17        USD       29.00        USD       727       (3,915 ) 

Targa Resources Corp.

      78        10/20/17        USD       45.00        USD       369       (20,670 ) 

Targa Resources Corp.

      77        10/20/17        USD       49.00        USD       364       (3,273 ) 

Public Service Enterprise Group, Inc.

      94        10/26/17        USD       46.20        USD       435       (8,388 ) 

NiSource, Inc.

      268        10/27/17        USD       26.50        USD       686       (2,226 ) 

ONEOK, Inc.

      124        10/27/17        USD       58.00        USD       687       (2,480 ) 

Duke Energy Corp.

      158        10/31/17        USD       86.25        USD       1,326       (4,474 ) 

Exelon Corp.

      75        10/31/17        USD       37.50        USD       283       (5,355 ) 

FirstEnergy Corp.

      90        10/31/17        USD       32.01        USD       277       (2,068 ) 

Pattern Energy Group, Inc.

      70        11/01/17        USD       25.51        USD       169       (1,136 ) 

Exelon Corp.

      216        11/06/17        USD       38.01        USD       814       (11,995 ) 

FirstEnergy Corp.

      350        11/13/17        USD       32.55        USD       1,079       (5,119 ) 

Edison International

      190        11/17/17        USD       80.00        USD       1,466       (10,925 ) 

Enbridge, Inc.

      150        11/17/17        USD       42.50        USD       628       (9,375 ) 

Exelon Corp.

      354        11/17/17        USD       38.00        USD       1,334       (24,780 ) 

Pattern Energy Group, Inc.

      221        11/17/17        USD       25.00        USD       533       (8,840 ) 

Plains All American Pipeline LP

      230        11/17/17        USD       22.00        USD       487       (10,925 ) 

Total

                   $ (325,577 ) 
                 

 

 

  

 

OTC Options Written                       
Description   Counterparty    Number of
Contracts		      Expiration
Date		      Exercise
Price		      Notional
Amount
(000)		     Value  

Call

                    

Eversource Energy

   Credit Suisse International      15,700        10/03/17      USD     63.41      USD     949     $ —  

Sempra Energy

   Credit Suisse International      20,800        10/03/17      USD     116.84      USD     2,374       (392 ) 

Enel SpA

   Credit Suisse International      85,200        10/04/17      EUR     5.06      EUR     435       (6,798 ) 

Transurban Group

   Deutsche Bank AG      100,000        10/04/17      AUD     12.19      AUD     1,191       (1,505 ) 

Energy Transfer Partners LP

   Goldman Sachs International      51,400        10/05/17      USD     20.64      USD     940       (1 ) 

Antero Midstream Partners LP

   Barclays Bank PLC      13,300        10/06/17      USD     32.40      USD     419       (692 ) 

Dominion Midstream Partners LP

   Citibank N.A.      29,400        10/10/17      USD     28.01      USD     941       (117,582 ) 

Aeroports de Paris

   UBS AG      8,400        10/11/17      EUR     144.92      EUR     1,149       (289 ) 

Enel SpA

   UBS AG      200,000        10/11/17      EUR     5.03      EUR     1,020       (24,346 ) 

DTE Energy Co.

   Deutsche Bank AG      10,000        10/16/17      USD     112.11      USD     1,074       (530 ) 

Public Service Enterprise Group, Inc.

   Barclays Bank PLC      26,000        10/16/17      USD     46.20      USD     1,203       (18,471 ) 

Atlantia SpA

   Morgan Stanley & Co. International PLC      56,800        10/18/17      EUR     26.97      EUR     1,518       (16,899 ) 

El Paso Electric Co.

   Citibank N.A.      12,800        10/18/17      USD     55.67      USD     707       (6,036 ) 

Iberdrola SA

   Credit Suisse International      36,000        10/18/17      EUR     6.88      EUR     237       (752 ) 

Italgas SpA

   Goldman Sachs International      90,000        10/18/17      EUR     4.81      EUR     428       (5,456 ) 

Japan Airport Terminal Co. Ltd.

   Morgan Stanley & Co. International PLC      12,700        10/18/17      JPY     3,936.27      JPY     50,917       (13,795 ) 

WEC Energy Group, Inc.

   Royal Bank of Canada      13,900        10/18/17      USD     66.41      USD     873       (345 ) 

Italgas SpA

   Goldman Sachs International      148,000        10/19/17      EUR     4.72      EUR     703       (16,096 ) 

New Jersey Resources Corp.

   UBS AG      10,000        10/23/17      USD     43.50      USD     422       (1,855 ) 

American Electric Power Co., Inc.

   Citibank N.A.      33,600        10/24/17      USD     72.86      USD     2,360       (4,935 ) 

Enterprise Products Partners LP

   Citibank N.A.      15,600        10/24/17      USD     26.32      USD     407       (5,322 ) 

 

     
                
   BLACKROCK UTILITY AND INFRASTRUCTURE TRUST    SEPTEMBER 30, 2017    3

Schedule of Investments (continued)

   

BlackRock Utility and Infrastructure Trust (BUI)

 

 

OTC Options Written (continued)  
Description   Counterparty    Number of
Contracts		      Expiration
Date		      Exercise
Price		      Notional
Amount
(000)		     Value  

Call

                    

NRG Yield, Inc., Class C

   Credit Suisse International      33,600        10/24/17      USD     18.20      USD     648     $ (40,337 ) 

Atlantia SpA

   UBS AG      78,500        10/25/17      EUR     27.18      EUR     2,098       (23,201 ) 

Ferrovial SA

   UBS AG      15,000        10/25/17      EUR     19.44      EUR     280       (561 ) 

Groupe Eurotunnel SE, Registered Shares

   UBS AG      53,300        10/25/17      EUR     10.25      EUR     544       (10,808 ) 

Vinci SA

   Goldman Sachs International      1,800        10/25/17      EUR     80.44      EUR     145       (2,873 ) 

Vinci SA

   Goldman Sachs International      6,100        10/25/17      EUR     80.99      EUR     490       (8,126 ) 

Antero Midstream Partners LP

   Barclays Bank PLC      13,300        10/26/17      USD     32.40      USD     419       (3,809 ) 

NextEra Energy, Inc.

   Morgan Stanley & Co. International PLC      25,300        10/26/17      USD     150.90      USD     3,708       (13,165 ) 

American Water Works Co., Inc.

   Morgan Stanley & Co. International PLC      12,300        10/27/17      USD     82.92      USD     995       (5,886 ) 

Energy Transfer Partners LP

   Bank of America N.A.      28,300        10/27/17      USD     19.16      USD     518       (3,853 ) 

Plains All American Pipeline LP

   Bank of America N.A.      45,500        10/27/17      USD     19.80      USD     964       (65,237 ) 

National Grid PLC

   Credit Suisse International      97,000        10/31/17      GBP     9.73      GBP     896       (1,801 ) 

Japan Airport Terminal Co. Ltd.

   Goldman Sachs International      9,300        11/01/17      JPY     3,851.58      JPY     37,286       (16,476 ) 

National Grid PLC

   Goldman Sachs International      135,500        11/01/17      GBP     9.55      GBP     1,252       (11,007 ) 

Pattern Energy Group, Inc.

   Bank of America N.A.      6,900        11/01/17      USD     26.96      USD     166       (162 ) 

Public Service Enterprise Group, Inc.

   Barclays Bank PLC      48,400        11/01/17      USD     46.71      USD     2,239       (38,241 ) 

Energy Transfer Partners LP

   Bank of America N.A.      17,200        11/02/17      USD     19.18      USD     315       (4,020 ) 

NRG Yield, Inc., Class C

   Royal Bank of Canada      26,600        11/02/17      USD     19.23      USD     513       (15,459 ) 

Transurban Group

   Deutsche Bank AG      145,200        11/02/17      AUD     12.26      AUD     1,729       (13,066 ) 

Xcel Energy, Inc.

   Bank of America N.A.      32,000        11/02/17      USD     49.48      USD     1,514       (3,065 ) 

Enel SpA

   Goldman Sachs International      308,800        11/03/17      EUR     5.21      EUR     1,575       (22,894 ) 

National Grid PLC

   Credit Suisse International      76,600        11/03/17      GBP     9.68      GBP     708       (3,181 ) 

CMS Energy Corp.

   Morgan Stanley & Co. International PLC      36,400        11/07/17      USD     48.85      USD     1,686       (964 ) 

Enel SpA

   Goldman Sachs International      85,100        11/07/17      EUR     5.15      EUR     434       (9,455 ) 

Enel SpA

   UBS AG      120,500        11/07/17      EUR     5.11      EUR     615       (15,065 ) 

NextEra Energy, Inc.

   Bank of America N.A.      24,900        11/07/17      USD     149.90      USD     3,649       (40,482 ) 

WEC Energy Group, Inc.

   Goldman Sachs International      10,600        11/07/17      USD     64.72      USD     665       (5,222 ) 

China Longyuan Power Group Corp. Ltd., Class H

   JPMorgan Chase Bank N.A.      1,265,000        11/08/17      HKD     6.02      HKD     7,400       (12,745 ) 

Iberdrola SA

   Deutsche Bank AG      34,500        11/08/17      EUR     6.75      EUR     227       (3,147 ) 

Sydney Airport

   JPMorgan Chase Bank N.A.      230,900        11/08/17      AUD     7.23      AUD     1,644       (22,526 ) 

Veolia Environnement SA

   Deutsche Bank AG      25,700        11/08/17      EUR     19.53      EUR     502       (14,648 ) 

China Longyuan Power Group Corp. Ltd., Class H

   Morgan Stanley & Co. International PLC      1,265,000        11/09/17      HKD     5.98      HKD     7,400       (15,439 ) 

Dominion Midstream Partners LP

   UBS AG      22,400        11/09/17      USD     28.65      USD     717       (74,018 ) 

Enel SpA

   UBS AG      232,000        11/09/17      EUR     5.21      EUR     1,183       (21,421 ) 

Sydney Airport

   Deutsche Bank AG      288,000        11/09/17      AUD     7.62      AUD     2,051       (5,546 ) 

Veolia Environnement SA

   Credit Suisse International      9,800        11/09/17      EUR     20.08      EUR     192       (3,050 ) 

Vinci SA

   Goldman Sachs International      20,100        11/09/17      EUR     82.12      EUR     1,616       (25,641 ) 

New Jersey Resources Corp.

   Deutsche Bank AG      9,800        11/14/17      USD     42.02      USD     413       (14,162 ) 

Abertis Infraestructuras SA

   UBS AG      69,800        11/16/17      EUR     17.49      EUR     1,194       (8,947 ) 

Atlantia SpA

   UBS AG      48,000        11/16/17      EUR     27.02      EUR     1,283       (26,776 ) 

Ferrovial SA

   UBS AG      43,300        11/16/17      EUR     18.72      EUR     807       (12,844 ) 

Flughafen Zürich AG

   UBS AG      5,000        11/16/17      CHF     221.83      CHF     1,096       (21,472 ) 

Fraport AG Frankfurt Airport Services Worldwide

   UBS AG      10,200        11/16/17      EUR     82.44      EUR     820       (21,077 ) 

 

     
                
4    BLACKROCK UTILITY AND INFRASTRUCTURE TRUST    SEPTEMBER 30, 2017   

Schedule of Investments (continued)

   

BlackRock Utility and Infrastructure Trust (BUI)

 

 

OTC Options Written (continued)                       
Description   Counterparty    Number of
Contracts		      Expiration
Date		      Exercise
Price		      Notional
Amount
(000)		     Value  

Call

                    

National Grid PLC

   Citibank N.A.      97,000        11/16/17      GBP     9.70      GBP     896     $ (6,465 ) 

Transurban Group

   Deutsche Bank AG      144,400        11/16/17      AUD     12.19      AUD     1,720       (21,239 ) 

PPL Corp.

   Morgan Stanley & Co. International PLC      23,300        11/21/17      USD     39.15      USD     884       (8,374 ) 

CMS Energy Corp.

   Bank of America N.A.      36,300        11/27/17      USD     47.02      USD     1,681       (22,067 ) 

American Water Works Co., Inc.

   Barclays Bank, PLC      12,200        11/28/17      USD     81.46      USD     987       (15,251 ) 

Groupe Eurotunnel SE, Registered Shares

   UBS AG      71,300        11/28/17      EUR     10.32      EUR     727       (18,711 ) 

Abertis Infraestructuras SA

   Morgan Stanley & Co. International      69,800        11/30/17      EUR     17.43      EUR     1,194       (8,456 ) 

Ferrovial SA

   UBS AG      24,400        12/05/17      EUR     18.71      EUR     455       (9,075 ) 

Dominion Midstream Partners LP

   Bank of America N.A.      29,500        12/07/17      USD     34.25      USD     944       (15,049 ) 

Total

                     $ (1,048,659 ) 
                   

 

 

  

 

     
                
   BLACKROCK UTILITY AND INFRASTRUCTURE TRUST    SEPTEMBER 30, 2017    5

Schedule of Investments (continued)

   

BlackRock Utility and Infrastructure Trust (BUI)

 

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

  •  

Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

 

  •  

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

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

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

 

     Level 1        Level 2        Level 3     Total  

Assets:

             
Investments:              
Common Stocks:              

Construction & Engineering

    —        $ 12,808,118          —     $ 12,808,118  

Electric Utilities

  $ 96,242,041          19,325,004          —       115,567,045  

Gas Utilities

    8,238,662          —          —       8,238,662  

Independent Power and Renewable Electricity Producers

    5,802,096          7,601,697          —       13,403,793  

Multi-Utilities

    58,361,812          16,710,779          —       75,072,591  

Oil, Gas & Consumable Fuels

    47,423,733          —          —       47,423,733  

Transportation Infrastructure

    4,292,320          55,376,995          —       59,669,315  

Water Utilities

    5,681,500          —          —       5,681,500  

Short-Term Securities

    15,177,910          —          —       15,177,910  
 

 

 

  

Total

   $ 241,220,074        $ 111,822,593          —     $ 353,042,667  
 

 

 

  

 

     
                
6    BLACKROCK UTILITY AND INFRASTRUCTURE TRUST    SEPTEMBER 30, 2017   

Schedule of Investments (concluded)

   

BlackRock Utility and Infrastructure Trust (BUI)

 

     Level 1        Level 2        Level 3     Total  
Derivative Financial Instruments1                                      

Liabilities:

             

Equity contracts

  $ (262,575 )       $ (1,111,661 )         —     $ (1,374,236 ) 

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

     

During the period ended September 30, 2017, there were no transfers between levels.

 

     
                
   BLACKROCK UTILITY AND INFRASTRUCTURE TRUST    SEPTEMBER 30, 2017    7

Item 2 – Controls and Procedures

 

2(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Utility and Infrastructure Trust

 

By:  

   /s/ John M. Perlowski                        
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Utility and Infrastructure Trust

Date: November 20, 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 Utility and Infrastructure Trust

Date: November 20, 2017

 

By:  

   /s/ Neal J. Andrews                        
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Utility and Infrastructure Trust

Date: November 20, 2017