UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSRS

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-08081

 

Name of Fund: BlackRock MuniHoldings Fund, Inc. (MHD)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock MuniHoldings Fund, Inc., 55 East 52nd Street, New York, NY 10055

 

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

 

Date of fiscal year end: 04/30/2011

 

Date of reporting period: 10/31/2010

 

Item 1 – Report to Stockholders


 

 

(BLACKROCK LOGO)

October 31, 2010          

 

 

Semi-Annual Report (Unaudited)

 

 

BlackRock Apex Municipal Fund, Inc. (APX)

 

 

 

BlackRock MuniAssets Fund, Inc. (MUA)

 

 

 

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

 

 

BlackRock MuniHoldings Fund, Inc. (MHD)

 

 

 

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

 

 

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

 

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

 

BlackRock MuniVest Fund II, Inc. (MVT)

 

 

 

Not FDIC Insured • No Bank Guarantee • May Lose Value

 




 

 

 


 

 

 

Table of Contents

 

 

 

 

 


 

 

Page


 

 

 

Dear Shareholder

 

3

Semi-Annual Report:

 

 

Fund Summaries

 

4

The Benefits and Risks of Leveraging

 

12

Derivative Financial Instruments

 

12

Financial Statements:

 

 

Schedules of Investments

 

13

Statements of Assets and Liabilities

 

52

Statements of Operations

 

54

Statements of Changes in Net Assets

 

55

Statements of Cash Flows

 

58

Financial Highlights

 

59

Notes to Financial Statements

 

67

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

 

74

Officers and Directors

 

78

Additional Information

 

79


 

 

 


2

SEMI-ANNUAL REPORT

OCTOBER 31, 2010



Dear Shareholder

The global economic recovery that began in 2009 has continued on its choppy course this year, delivering mixed but slowly improving economic data and gradual if uneven improvement of investor sentiment. The risks of a double-dip recession continue to recede, but the economy remains mired in a slow-growth environment. In the United States, the National Bureau of Economic Research declared that the “Great Recession” ended in June 2009. Spanning December 2007 to June 2009, this marked the longest reported recession since the Great Depression. Structural problems of ongoing deleveraging and weak spending among businesses and households weigh heavily on the pace of economic growth. The unemployment rate remains stubbornly high in the face of sluggish job gains in the private sector. The US dollar, along with other developed market currencies, has experienced devaluation resulting from aggressively easy monetary and fiscal policies. Given these long-standing conditions, the Federal Reserve Board has announced that additional policy action will be taken to combat deflation and unemployment and promote economic growth.

The high levels of volatility experienced in global equity markets throughout 2009 continued into 2010 as mixed economic data and lingering credit issues caused stocks to trade in both directions, but by the end of the first quarter, most markets had managed to post gains. The second quarter, in contrast, brought higher levels of volatility and a “flight to quality” as investor sentiment was dominated by fears of a double-dip recession. Global equity markets saw negative quarterly returns — and for many markets, the first significant downturn since the bull market began in March 2009. In the third quarter, economic data turned less negative and strong corporate earnings reports became increasingly consistent. These factors, along with attractive valuations and expectations for additional quantitative easing, drove equity markets higher, with most markets recapturing their second quarter losses. Stocks continued their rally into the beginning of the fourth quarter, closing out the 12-month period in positive territory. International equities posted gains on both a six- and 12-month basis. In the United States, both large and small cap equities posted robust gains for the 12-month period, while on a six-month basis, large cap stocks remained relatively flat and small caps turned slightly negative.

In fixed income markets, yields fluctuated but declined significantly over the past 12 months amid heightened uncertainty. Weak economic data, lingering credit problems and, near the end of the period, the expectation of additional quantitative easing drove interest rates lower and bond prices higher. Treasuries rallied over the period, modestly outperforming the credit spread sectors of the market. Corporate credit spreads benefited from the low interest rate environment and high yield fixed income became increasingly attractive due to declining default rates and better-than-expected results on European bank stress tests. Tax-exempt municipal bonds performed well over the 12-month period, driven primarily by technical factors including favorable supply-and-demand dynamics.

Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates remained low. Yields on money market securities remain near all-time lows.

Against this backdrop, the major market averages posted the following returns:

 

 

 

 

 

 

Total Returns as of October 31, 2010

 

6-month

 

12-month

 







US large cap equities (S&P 500 Index)

 

0.74

%

16.52

%







US small cap equities (Russell 2000 Index)

 

(1.24

)

26.58

 







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

 

5.74

 

8.36

 







3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)

 

0.08

 

0.12

 







US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)

 

10.63

 

10.03

 







US investment grade bonds (Barclays Capital US Aggregate Bond Index)

 

5.33

 

8.01

 







Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)

 

3.95

 

7.78

 







US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)

 

6.73

 

19.10

 







Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

As global economic conditions continue to improve, investors across the world continue to face uncertainty about the future of economic growth. Through periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.

Sincerely,

-s- Rob Kapito

Rob Kapito

President, BlackRock Advisors, LLC

 

 

 


 

THIS PAGE NOT PART OF YOUR FUND REPORT

3




 

 


 

 

Fund Summary as of October 31, 2010

BlackRock Apex Municipal Fund, Inc.

 

 


Fund Overview


 

BlackRock Apex Municipal Fund, Inc.’s (APX) (the “Fund”) investment objective is to provide high current income exempt from federal income taxes by investing primarily in a portfolio of medium- to lower-grade or unrated municipal obligations, the interest on which is exempt from federal income taxes in the opinion of bond counsel to the issuer. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests at least 75% of its assets in municipal bonds that are rated in the medium to lower categories by nationally recognized rating services (Baa or lower by Moody’s Investors Service, Inc. or BBB or lower by Standard & Poor’s Corporation) or non-rated securities which are of comparable quality. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

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

 


Performance


 

For the six months ended October 31, 2010, the Fund returned 7.99% based on market price and 6.36% based on net asset value (“NAV”). For the same period, the closed-end Lipper High Yield Municipal Debt Funds category posted an average return of 7.20% based on market price and 6.92% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s low concentrations in tax-backed (state, county, city and school district) and development district (special district) issues detracted from performance as these sectors continued to strengthen during the period. The Fund’s portfolio duration remained relatively lower than its Lipper category average, which has proven detrimental in the declining interest rate environment. In addition, a majority of peers within the Lipper category employ a higher degree of leverage, which can enhance both returns and distribution yields. Contributing positively to performance was sector allocation, particularly with respect to concentrations in health, transportation, and corporate-related debt, all of which performed well during the period. Also beneficial was the Fund’s positioning in the intermediate range of the yield curve, which outperformed the longer end of the curve for the period.


 

 

 

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


 

 

 




Fund Information

 

 




Symbol on New York Stock Exchange (“NYSE”)

 

APX

Initial Offering Date

 

July 25, 1989

Yield on Closing Market Price as of October 31, 2010 ($9.31)1

 

5.67%

Tax Equivalent Yield2

 

8.72%

Current Monthly Distribution per Common Share3

 

$0.044

Current Annualized Distribution per Common Share3

 

$0.528

Leverage as of October 31, 20104

 

4%





 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 12.

 

 

 

The table below summarizes the changes in the Fund’s market price and NAV per share:


 

 

 

 

 

 







 

10/31/10

4/30/10

Change

High

Low







Market Price

$9.31

$8.87

4.96%

$9.61

$8.75

Net Asset Value

$9.50

$9.19

3.37%

$9.54

$9.16







 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:


 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







Health

 

29

%

 

29

%

 

Corporate

 

21

 

 

20

 

 

County/City/Special District/School District

 

16

 

 

16

 

 

Transportation

 

12

 

 

11

 

 

Education

 

7

 

 

7

 

 

Utilities

 

6

 

 

4

 

 

Tobacco

 

3

 

 

5

 

 

Housing

 

3

 

 

4

 

 

State

 

3

 

 

4

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







AAA/Aaa

 

3

%

 

7

%

 

AA/Aa

 

6

 

 

2

 

 

A

 

10

 

 

11

 

 

BBB/Baa

 

27

 

 

26

 

 

BB/Ba

 

8

 

 

8

 

 

B

 

6

 

 

7

 

 

CCC/Caa

 

5

 

 

4

 

 

Not Rated6

 

35

 

 

35

 

 








 

 

5

Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2010 and April 30, 2010, the market value of these securities was $14,880,896 representing 8% and $14,523,630 representing 8%, respectively, of the Fund’s long-term investments.


 

 

 


4

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Fund Summary as of October 31, 2010

BlackRock MuniAssets Fund, Inc.

 

 


Fund Overview


 

BlackRock MuniAssets Fund, Inc.’s (MUA) (the “Fund”) investment objective is to provide high current income exempt from federal income taxes by investing primarily in a portfolio of medium- to lower-grade or unrated municipal obligations, the interest on which, in the opinion of bond counsel, is exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests at least 65% of its assets in municipal bonds that are rated in the medium to lower categories by nationally recognized rating services (for example, Baa or lower by Moody’s Investors Service, Inc. or BBB or lower by Standard & Poor’s Corporation) or non-rated securities which are of comparable quality. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

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

 


Performance


 

For the six months ended October 31, 2010, the Fund returned 5.72% based on market price and 6.54% based on NAV. For the same period, the closed-end Lipper High Yield Municipal Debt Funds category posted an average return of 7.20% based on market price and 6.92% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s low concentrations in tax-backed (state, county, city and school district) and development district (special district) issues detracted from performance as these sectors continued to strengthen during the period. The Fund’s portfolio duration remained relatively lower than its Lipper category average, which has proven detrimental in the declining interest rate environment. In addition, a majority of peers within the Lipper category employ a higher degree of leverage, which can enhance both returns and distribution yields. Contributing positively to performance was sector allocation, particularly with respect to concentrations in health, transportation, and corporate-related debt, all of which performed well during the period. Also beneficial was the Fund’s positioning in the intermediate range of the yield curve, which outperformed the longer end of the curve for the period.


 

 

 

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


 

 



Fund Information


 

Symbol on NYSE

MUA

Initial Offering Date

June 25, 1993

Yield on Closing Market Price as of October 31, 2010 ($12.99)1

5.77%

Tax Equivalent Yield2

8.88%

Current Monthly Distribution per Common Share3

$0.0625

Current Annualized Distribution per Common Share3

$0.7500

Leverage as of October 31, 20104

4%




 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

 

 

 

The table below summarizes the changes in the Fund’s market price and NAV per share:


 

 

 

 

 

 







 

10/31/10

4/30/10

Change

High

Low







Market Price

$12.99

$12.65

2.69%

$13.21

$12.26

Net Asset Value

$13.07

$12.63

3.48%

$13.12

$12.57







 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:


 

 

 




Sector Allocations

 

 





 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 









Health

 

26

%

 

29

%

 

Corporate

 

25

 

 

24

 

 

County/City/Special District/School District

 

13

 

 

13

 

 

Transportation

 

12

 

 

11

 

 

Utilities

 

7

 

 

4

 

 

Education

 

6

 

 

6

 

 

Tobacco

 

4

 

 

5

 

 

Housing

 

4

 

 

4

 

 

State

 

3

 

 

4

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







AAA/Aaa

 

3

%

 

6

%

 

AA/Aa

 

6

 

 

3

 

 

A

 

11

 

 

14

 

 

BBB/Baa

 

29

 

 

26

 

 

BB/Ba

 

8

 

 

8

 

 

B

 

7

 

 

7

 

 

CCC/Caa

 

5

 

 

4

 

 

Not Rated6

 

31

 

 

32

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2010 and April 30, 2010, the market value of these securities was $13,096,178 representing 5% and $15,867,930, representing 6%, respectively, of the Fund’s long-term investments.


 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2010

5




 

 


 

 

Fund Summary as of October 31, 2010

BlackRock MuniEnhanced Fund, Inc.

 


Fund Overview


 

BlackRock MuniEnhanced Fund, Inc.’s (MEN) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests primarily in long-term municipal bonds rated investment grade quality at the time of investment and invests primarily in long-term municipal bonds with maturities of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

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

 


Performance


 

For the six months ended October 31, 2010, the Fund returned 7.41% based on market price and 6.81% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 7.94% based on market price and 5.84% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund benefited from its modestly long duration relative to the Lipper category average as bond prices rallied in the declining interest rate environment. The tax-exempt municipal market in general benefited from the Build America Bond Program, which alleviated supply pressure in the tax-exempt space, especially on the long end of the yield curve. The Fund’s holdings of insured bonds with lower quality underlying credits contributed positively to performance as did exposure to traditionally higher yielding sectors, including transportation, health and corporate-related debt, as credit quality spreads generally tightened during the period. Conversely, the Fund’s holdings of zero-coupon bonds detracted from performance as these securities generally underperformed coupon bonds due to widening spreads in the sector. In addition, the Fund’s low exposure to education hindered performance as the sector performed well during the period.


 

 

 

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


 

 



Fund Information

 



Symbol on NYSE

MEN

Initial Offering Date

March 2, 1989

Yield on Closing Market Price as of October 31, 2010 ($11.26)1

6.07%

Tax Equivalent Yield2

9.34%

Current Monthly Distribution per Common Share3

$0.057

Current Annualized Distribution per Common Share3

$0.684

Leverage as of October 31, 20104

38%




 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Auction Market Preferred Shares (“Preferred Shares”) and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

 

 

 

The table below summarizes the changes in the Fund’s market price and NAV per share:


 

 

 

 

 

 







 

10/31/10

4/30/10

Change

High

Low







Market Price

$11.26

$10.81

4.16%

$11.70

$10.38

Net Asset Value

$11.29

$10.90

3.58%

$11.47

$10.85







 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:


 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







County/City/Special District/School District

 

29

%

 

28

%

 

Transportation

 

22

 

 

24

 

 

State

 

18

 

 

19

 

 

Utilities

 

14

 

 

14

 

 

Health

 

6

 

 

7

 

 

Education

 

5

 

 

3

 

 

Corporate

 

3

 

 

2

 

 

Housing

 

3

 

 

3

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







AAA/Aaa

 

12

%

 

46

%

 

AA/Aa

 

59

 

 

23

 

 

A

 

25

 

 

26

 

 

BBB/Baa

 

4

 

 

5

 

 

5 Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 










 

 

 


6

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 



 

 

Fund Summary as of October 31, 2010

BlackRock MuniHoldings Fund, Inc.

 


Fund Overview


 

BlackRock MuniHoldings Fund, Inc.’s (MHD) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

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

 


Performance


 

For the six months ended October 31, 2010, the Fund returned 9.74% based on market price and 7.36% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 7.68% based on market price and 6.42% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s outperformance relative to its Lipper category was driven by sector allocation, particularly with respect to concentrations in health and corporate-related debt, both of which continued to perform well during the period. The Fund’s focus on lower quality credits had a positive impact due to the ongoing contraction of credit quality spreads. In addition, the Fund’s modestly long portfolio duration (sensitivity to interest rates) relative to the Lipper category average proved beneficial in the declining interest rate environment. Conversely, a concentration of holdings in longer dated issues detracted from performance as the intermediate range of the yield curve outperformed the longer end of the curve.


 

 

 

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


 

 



Fund Information

 



 

 

Symbol on NYSE

MHD

Initial Offering Date

May 2, 1997

Yield on Closing Market Price as of October 31, 2010 ($16.68)1

6.40%

Tax Equivalent Yield2

9.85%

Current Monthly Distribution per Common Share3

$0.089

Current Annualized Distribution per Common Share3

$1.068

Leverage as of October 31, 20104

36%




 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

A change in the distribution rate was declared on December 6, 2010. The Monthly Distribution per Common Share was increased to $0.0905. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant is subject to further change in the future.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

 

 

The table below summarizes the changes in the Fund’s market price and NAV per share:


 

 

 

 

 

 







 

10/31/10

4/30/10

Change

High

Low







Market Price

$16.68

$15.70

6.24%

$17.05

$14.85

Net Asset Value

$16.37

$15.75

3.94%

$16.55

$15.61







 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:


 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







Health

 

23

%

 

23

%

 

Corporate

 

14

 

 

14

 

 

State

 

12

 

 

12

 

 

Transportation

 

12

 

 

11

 

 

Utilities

 

12

 

 

11

 

 

County/City/Special District/School District

 

10

 

 

11

 

 

Education

 

8

 

 

9

 

 

Housing

 

7

 

 

7

 

 

Tobacco

 

2

 

 

2

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







AAA/Aaa

 

12

%

 

19

%

 

AA/Aa

 

39

 

 

32

 

 

A

 

22

 

 

23

 

 

BBB/Baa

 

12

 

 

11

 

 

BB/Ba

 

2

 

 

2

 

 

B

 

2

 

 

2

 

 

CCC/Caa

 

2

 

 

2

 

 

Not Rated6

 

9

 

 

9

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of October 31, 2010 and April 30, 2010, the market value of these securities was $2,891,783 representing 1% and $2,973,600 representing 1%, respectively, of the Fund’s long-term investments.


 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2010

7




 

 



 

 

Fund Summary as of October 31, 2010

BlackRock MuniHoldings Fund II, Inc.

 


Fund Overview


 

BlackRock MuniHoldings Fund II, Inc.’s (MUH) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

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

 


Performance


 

For the six months ended October 31, 2010, the Fund returned 7.64% based on market price and 7.30% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 7.68% based on market price and 6.42% based on NAV. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s outperformance relative to its Lipper category was driven by sector allocation, particularly with respect to concentrations in health and corporate-related debt, both of which continued to perform well during the period. The Fund’s focus on lower quality credits had a positive impact due to the ongoing contraction of credit quality spreads. In addition, the Fund’s modestly long portfolio duration (sensitivity to interest rates) relative to the Lipper category average proved beneficial in the declining interest rate environment. Conversely, a concentration of holdings in longer dated issues detracted from performance as the intermediate range of the yield curve outperformed the longer end of the curve.

 

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


 

 



Fund Information

 



 

 

Symbol on NYSE

MUH

Initial Offering Date

February 27, 1998

Yield on Closing Market Price as of October 31, 2010 ($15.30)1

6.31%

Tax Equivalent Yield2

9.71%

Current Monthly Distribution per Common Share3

$0.0805

Current Annualized Distribution per Common Share3

$0.9660

Leverage as of October 31, 20104

34%




 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

 

 

The table below summarizes the changes in the Fund’s market price and NAV per share:


 

 

 

 

 

 







 

10/31/10

4/30/10

Change

High

Low







Market Price

$15.30

$14.68

4.22%

$16.48

$13.99

Net Asset Value

$15.22

$14.65

3.89%

$15.39

$14.53







 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:


 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







Health

 

22

%

 

21

%

 

City/County/Special District/School District

 

15

 

 

15

 

 

Corporate

 

15

 

 

15

 

 

State

 

12

 

 

12

 

 

Transportation

 

11

 

 

10

 

 

Education

 

9

 

 

10

 

 

Utilities

 

9

 

 

8

 

 

Housing

 

5

 

 

7

 

 

Tobacco

 

2

 

 

2

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







AAA/Aaa

 

12

 

 

18

%

 

AA/Aa

 

42

 

 

37

 

 

A

 

20

 

 

20

 

 

BBB/Baa

 

12

 

 

12

 

 

BB/Ba

 

2

 

 

2

 

 

B

 

1

 

 

1

 

 

CCC/Caa

 

2

 

 

2

 

 

Not Rated6

 

9

 

 

8

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2010 and April 30, 2010, the market value of these securities was $5,831,267 representing 2% and $4,406,945 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 


8

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 



 

 

Fund Summary as of October 31, 2010

BlackRock MuniHoldings Quality Fund, Inc.

 


Fund Overview


 

Effective November 9, 2010, BlackRock MuniHoldings Insured Fund, Inc. changed its name to BlackRock MuniHoldings Quality Fund, Inc.

 

BlackRock MuniHoldings Quality Fund, Inc.’s (MUS) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

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

 


Performance


 

For the six months ended October 31, 2010, the Fund returned 8.62% based on market price and 6.32% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 7.94% based on market price and 5.84% based on NAV. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s exposure to health, housing and transportation contributed positively to performance as credit quality spreads generally tightened, causing these sectors to outperform other municipal market sectors, particularly among bonds with longer maturities. The tax-exempt municipal market in general benefited from the Build America Bond Program, which alleviated supply pressure in the tax-exempt space, especially on the long end of the yield curve. As such, the Fund’s slightly long duration stance enhanced performance for the period. Detracting from performance was the Fund’s exposure to bonds with short call features, which did not fully benefit from the price appreciation that occurred among bonds with longer call dates and non-callable bonds.


 

 

 

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


 

 



Fund Information

 



 

 

Symbol on NYSE

MUS

Initial Offering Date

May 1, 1998

Yield on Closing Market Price as of October 31, 2010 ($14.09)1

6.30%

Tax Equivalent Yield2

9.69%

Current Monthly Distribution per Common Share3

$0.074

Current Annualized Distribution per Common Share3

$0.888

Leverage as of October 31, 20104

40%




 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

 

 

The table below summarizes the changes in the Fund’s market price and NAV per share:


 

 

 

 

 

 







 

10/31/10

4/30/10

Change

High

Low







Market Price

$14.09

$13.40

5.15%

$14.73

$13.10

Net Asset Value

$13.73

$13.34

2.92%

$13.94

$13.24







 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:


 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







City/County/Special District/School District

 

29

%

 

33

%

 

Utilities

 

22

 

 

22

 

 

Transportation

 

21

 

 

16

 

 

State

 

11

 

 

13

 

 

Health

 

9

 

 

9

 

 

Housing

 

5

 

 

5

 

 

Corporate

 

3

 

 

2

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







AAA/Aaa

 

10

%

 

58

%

 

AA/Aa

 

57

 

 

16

 

 

A

 

21

 

 

24

 

 

BBB/Baa

 

1

 

 

1

 

 

Not Rated6

 

11

 

 

1

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2010 and April 30, 2010, the market value of these securities was $2,426,336 representing 1% and $2,342,435 representing 1%, respectively, of the Fund’s long-term investments.


 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2010

9




 

 


 

 

Fund Summary as of October 31, 2010

BlackRock Muni Intermediate Duration Fund, Inc.

 


Fund Overview


 

BlackRock Muni Intermediate Duration Fund, Inc.’s (MUI) (the “Fund”) investment objective is to provide Common Shareholders with high current income exempt from federal income taxes taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests at least 75% of its assets in municipal bonds rated investment grade and invests at least 80% of its assets in municipal bonds with a duration of three to ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

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

 


Performance


 

For the six months ended October 31, 2010, the Fund returned 11.45% based on market price and 7.11% based on NAV. For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 8.07% based on market price and 6.02% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. While the Fund maintained its neutral duration (sensitivity to interest rates) relative to the Lipper category average during most of the period, we increased its exposure to interest rate-sensitive bonds, including new issues, which delivered strong performance as bond prices rallied in the declining interest rate environment. Increased exposure to high yield and economically sensitive corporate-related municipal debt also contributed positively, as did exposure to traditionally higher yielding sectors, including health and housing, all of which performed well as credit quality spreads tightened during the period. Conversely, the Fund’s short maturity and low duration holdings hindered relative performance due to their limited upward price movement in the declining interest rate environment. In addition, the Fund’s exposure to traditionally higher quality sectors, including utilities and essential services, detracted from performance as these sectors experienced weak demand while investors sought yield.


 

 

 

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


 

 



Fund Information

 



 

 

Symbol on NYSE

MUI

Initial Offering Date

August 1, 2003

Yield on Closing Market Price as of October 31, 2010 ($15.32)1

5.60%

Tax Equivalent Yield2

8.62%

Current Monthly Distribution per Common Share3

$0.0715

Current Annualized Distribution per Common Share3

$0.8580

Leverage as of October 31, 20104

38%




 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

 

 

 

The table below summarizes the changes in the Fund’s market price and NAV per share:


 

 

 

 

 

 







 

10/31/10

4/30/10

Change

High

Low







Market Price

$15.32

$14.13

8.42%

$16.17

$13.41

Net Asset Value

$15.37

$14.75

4.20%

$15.59

$14.70







 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:


 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







State

 

24

%

 

23

%

 

City/County/Special District/School District

 

21

 

 

21

 

 

Health

 

15

 

 

12

 

 

Corporate

 

11

 

 

12

 

 

Transportation

 

8

 

 

8

 

 

Education

 

7

 

 

6

 

 

Utilities

 

6

 

 

8

 

 

Tobacco

 

4

 

 

6

 

 

Housing

 

4

 

 

4

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 









AAA/Aaa

 

14

%

 

28

%

 

AA/Aa

 

41

 

 

25

 

 

A

 

23

 

 

23

 

 

BBB/Baa

 

10

 

 

11

 

 

BB/Ba

 

1

 

 

1

 

 

B

 

1

 

 

2

 

 

CCC/Caa

 

2

 

 

3

 

 

Not Rated6

 

8

 

 

7

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2010 and April 30, 2010, the market value of these securities was $21,435,534 representing 2% and $11,900,188 representing 1%, respectively, of the Fund’s long-term investments.


 

 

 


10

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 



 

 

Fund Summary as of October 31, 2010

BlackRock MuniVest Fund II, Inc.

 


Fund Overview


 

BlackRock MuniVest Fund II, Inc.’s (MVT) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

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

 


Performance


 

For the six months ended October 31, 2010, the Fund returned 6.64% based on market price and 7.40% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 7.68% based on market price and 6.42% based on NAV. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s outperformance relative to its Lipper category was driven by sector allocation, particularly with respect to concentrations in health, transportation, and corporate-related debt, all of which continued to perform well during the period. The Fund’s focus on lower quality credits had a positive impact due to the ongoing contraction of credit quality spreads. In addition, the Fund’s modestly long portfolio duration (sensitivity to interest rates) relative to the Lipper category average proved beneficial in the declining interest rate environment. Conversely, a concentration of holdings in longer dated issues detracted from performance as the intermediate range of the yield curve outperformed the longer end of the curve.


 

 

 

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


 

 



Fund Information

 



 

 

Symbol on NYSE

MVT

Initial Offering Date

March 29, 1993

Yield on Closing Market Price as of October 31, 2010 ($15.38)1

6.91%

Tax Equivalent Yield2

10.63%

Current Monthly Distribution per Common Share3

$0.0885

Current Annualized Distribution per Common Share3

$1.0620

Leverage as of October 31, 20104

40%




 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

 

 

 

The table below summarizes the changes in the Fund’s market price and NAV per share:


 

 

 

 

 

 







 

10/31/10

4/30/10

Change

High

Low







Market Price

$15.38

$14.94

2.95%

$15.84

$14.02

Net Asset Value

$14.94

$14.41

3.68%

$15.12

$14.29







 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Fund’s long-term investments:


 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







Health

 

25

%

 

22

%

 

State

 

15

 

 

14

 

 

Corporate

 

15

 

 

18

 

 

Transportation

 

12

 

 

12

 

 

County/City/Special District/School District

 

11

 

 

10

 

 

Utilities

 

11

 

 

10

 

 

Education

 

6

 

 

6

 

 

Housing

 

4

 

 

5

 

 

Tobacco

 

1

 

 

3

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/10

 

4/30/10

 







AAA/Aaa

 

11

%

 

18

%

 

AA/Aa

 

46

 

 

39

 

 

A

 

18

 

 

18

 

 

BBB/Baa

 

11

 

 

11

 

 

BB/Ba

 

1

 

 

 

 

B

 

3

 

 

3

 

 

CCC/Caa

 

 

 

1

 

 

Not Rated6

 

10

 

 

10

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2010 and April 30, 2010, the market value of these securities was $6,274,996 representing 1% and $5,505,082 representing 1%, respectively, of the Fund’s long-term investments.


 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2010

11




 


 

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, all of the Funds, except APX and MUA, issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the cost of assets to be obtained from leverage will be based on short-term interest rates, which normally will be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s Common Shareholders will benefit from the incremental net income.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Fund with assets received from the Preferred Shares issuance earn the income based on long-term interest rates. In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the Fund’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup on the Common Shares will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Fund pays dividends on the higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of a Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Funds’ Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAV positively or negatively in addition to the impact on Fund performance from leverage from Preferred Shares discussed above.

The Funds may also leverage their assets through the use of tender option bond (“TOB”) programs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Funds, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Fund’s NAV per share.

The use of leverage may enhance opportunities for increased income to the Funds and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Funds’ NAV, market price and dividend rate than a comparable portfolio without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Fund’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. Each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Fund to incur losses. The use of leverage may limit each Fund’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by ratings agencies that rate Preferred Shares issued by the Funds. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, the Funds are permitted to issue Preferred Shares in an amount up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Fund anticipates that the total economic leverage from Preferred Shares and/or TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of October 31, 2010, the Funds had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 






 

 

Percent of
Leverage

 





APX

 

4

%

 

MUA

 

4

%

 

MEN

 

38

%

 

MHD

 

36

%

 

MUH

 

34

%

 

MUS

 

40

%

 

MUI

 

38

%

 

MVT

 

40

%

 







 


 

Derivative Financial Instruments

The Funds may invest in various derivative instruments, including financial futures contracts, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Such derivative instruments involve risks, including the imperfect correlation between the value of a derivative instrument and the underlying asset or illiquidity of the derivative instrument. The Funds’ ability to successfully use a derivative instrument depends on the investment advisor’s ability to accurately predict pertinent market movements, which cannot be assured. The use of derivative instruments may result in losses greater than if they had not been used, may require the Funds to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders or may cause the Funds to hold an investment that they might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

 

 

 




12

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 0.2%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series A,
5.25%, 1/01/17

 

$

365

 

$

345,615

 









Alaska — 1.0%

 

 

 

 

 

 

 

Alaska Industrial Development & Export Authority, RB,
Williams Lynxs, Alaska Cargoport, AMT, 8.00%,
5/01/23

 

 

2,000

 

 

1,969,820

 









Arizona — 3.9%

 

 

 

 

 

 

 

Maricopa County IDA Arizona, RB, Series A:

 

 

 

 

 

 

 

Arizona Charter Schools Project, 6.63%, 7/01/20

 

 

900

 

 

703,512

 

Sun King Apartments Project, 6.00%, 11/01/10

 

 

5

 

 

5,000

 

Phoenix IDA Arizona, Refunding RB, America West
Airlines Inc. Project, AMT, 6.30%, 4/01/23

 

 

2,950

 

 

2,591,103

 

Pima County IDA, RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project, Series E, 7.25%,
7/01/31

 

 

935

 

 

951,073

 

Tucson Electric Power Co., Series A, 5.25%,
10/01/40

 

 

1,635

 

 

1,627,593

 

Pima County IDA, Refunding IDRB, Tucson Electric
Power, 5.75%, 9/01/29

 

 

460

 

 

475,355

 

University Medical Center Corp. Arizona, RB, 6.25%,
7/01/29

 

 

540

 

 

586,985

 

Yavapai County IDA Arizona, RB, Yavapai Regional
Medical Center, Series A, 6.00%, 8/01/33

 

 

500

 

 

506,260

 

 

 

 

 

 




 

 

 

 

 

 

7,446,881

 









California — 3.4%

 

 

 

 

 

 

 

California Statewide Communities Development Authority,
Refunding RB:

 

 

 

 

 

 

 

American Baptist Homes of the West, 6.25%,
10/01/39

 

 

885

 

 

898,231

 

Senior Living, Southern California, 7.00%,
11/15/29

 

 

400

 

 

437,224

 

Senior Living, Southern California, 7.25%,
11/15/41

 

 

1,440

 

 

1,584,230

 

City of Fontana California, Special Tax Bonds, Refunding,
Community Facilities District No. 22-Sierra, Series H,
6.00%, 9/01/34

 

 

1,000

 

 

1,000,240

 

State of California, GO, Various Purpose, 6.00%, 3/01/33

 

 

2,120

 

 

2,435,117

 

 

 

 

 

 




 

 

 

 

 

 

6,355,042

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Colorado — 3.0%

 

 

 

 

 

 

 

E-470 Public Highway Authority, Refunding RB, CAB,
7.08%, 9/01/35 (a)

 

$

1,505

 

$

274,452

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee, Series A, 7.30%, 9/01/22

 

 

2,800

 

 

2,803,976

 

Plaza Metropolitan District No. 1 Colorado, Tax
Allocation Bonds, Tax Increment:

 

 

 

 

 

 

 

Public Improvement Fee, 8.00%, 12/01/25

 

 

2,000

 

 

2,089,540

 

Subordinate Public Improvement Fee, 8.13%,
12/01/25

 

 

500

 

 

464,940

 

 

 

 

 

 




 

 

 

 

 

 

5,632,908

 









Connecticut — 2.3%

 

 

 

 

 

 

 

Harbor Point Infrastructure Improvement District, Tax
Allocation Bonds, Harbor Point Project, Series A,
7.88%, 4/01/39

 

 

1,610

 

 

1,730,347

 

Mohegan Tribe of Indians of Connecticut, RB, Public
Improvement, Priority Distribution:

 

 

 

 

 

 

 

6.25%, 1/01/31

 

 

1,785

 

 

1,478,391

 

5.25%, 1/01/33 (b)

 

 

1,500

 

 

1,082,055

 

 

 

 

 

 




 

 

 

 

 

 

4,290,793

 









Delaware — 0.9%

 

 

 

 

 

 

 

Delaware State EDA, RB, Exempt Facilities, Indian River
Power, 5.38%, 10/01/45

 

 

1,720

 

 

1,713,189

 









District of Columbia — 2.2%

 

 

 

 

 

 

 

District of Columbia, RB, Methodist Home District of
Columbia, Series A:

 

 

 

 

 

 

 

7.38%, 1/01/30

 

 

680

 

 

695,144

 

7.50%, 1/01/39

 

 

1,110

 

 

1,135,663

 

District of Columbia Tobacco Settlement Financing Corp.,
Refunding RB, Asset-Backed, 6.50%, 5/15/33

 

 

730

 

 

721,466

 

Metropolitan Washington Airports Authority, RB, CAB, 2nd
Senior Lien, Series B (AGC), 6.76%, 10/01/39 (a)

 

 

9,770

 

 

1,680,342

 

 

 

 

 

 




 

 

 

 

 

 

4,232,615

 










 

 


Portfolio Abbreviations


 

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

 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

EDC

Economic Development Corp.

ERB

Education Revenue Bonds

FGIC

Financial Guaranty Insurance Co.

FHA

Federal Housing Administration

GARB

General Airport Revenue Bond

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

HRB

Housing Revenue Bonds

HUD

US Department of Housing and Urban Development

IDA

Industrial Development Authority

IDB

Industrial Development Board

IDRB

Industrial Development Revenue Bonds

ISD

Independent School District

LRB

Lease Revenue Bonds

M/F

Multi-Family

MRB

Mortgage Revenue Bonds

NPFGC

National Public Finance Guarantee Corp.

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

S/F

Single Family

TE

Tax-Exempt

TIF

Tax Increment Financing


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

13




 

 


 

 

Schedule of Investments (continued)

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Florida — 8.7%

 

 

 

 

 

 

 

County of Miami-Dade Florida, Refunding RB, Miami
International Airport, Series A-1, 5.38%, 10/01/41

 

$

360

 

$

371,581

 

Hillsborough County IDA, RB, AMT, National Gypsum Co.:

 

 

 

 

 

 

 

Series A, 7.13%, 4/01/30

 

 

2,500

 

 

2,437,050

 

Series B, 7.13%, 4/01/30

 

 

1,560

 

 

1,520,719

 

Jacksonville Economic Development Commission, RB,
Gerdau Ameristeel US Inc., AMT, 5.30%, 5/01/37

 

 

900

 

 

791,649

 

Jacksonville Economic Development Commission,
Refunding RB, Florida Proton Therapy Institute, Series A,
6.00%, 9/01/17

 

 

750

 

 

787,620

 

Lee County IDA Florida, RB, Series A, Lee Charter
Foundation, 5.38%, 6/15/37

 

 

1,810

 

 

1,559,731

 

Midtown Miami Community Development District,
Special Assessment Bonds, Series A:

 

 

 

 

 

 

 

6.00%, 5/01/24

 

 

1,370

 

 

1,357,506

 

6.25%, 5/01/37

 

 

1,350

 

 

1,327,685

 

Santa Rosa Bay Bridge Authority, RB, 6.25%, 7/01/28

 

 

2,140

 

 

993,409

 

Sarasota County Health Facilities Authority, Refunding RB,
Village on the Isle Project:

 

 

 

 

 

 

 

5.50%, 1/01/27

 

 

370

 

 

354,305

 

5.50%, 1/01/32

 

 

550

 

 

517,853

 

Sumter Landing Community Development District Florida,
RB, Sub-Series B, 5.70%, 10/01/38

 

 

1,585

 

 

1,318,577

 

Tampa Palms Open Space & Transportation Community
Development District, RB, Capital Improvement,
Richmond Place Project, 7.50%, 5/01/18

 

 

1,905

 

 

1,905,838

 

Tolomato Community Development District, Special
Assessment Bonds, Special Assessment, 6.65%,
5/01/40

 

 

1,850

 

 

1,360,323

 

 

 

 

 

 




 

 

 

 

 

 

16,603,846

 









Georgia — 4.0%

 

 

 

 

 

 

 

City of Atlanta Georgia, Tax Allocation Bonds, Princeton
Lakes Project, 5.50%, 1/01/31

 

 

395

 

 

361,682

 

Clayton County Development Authority, RB,
Delta Air Lines Inc. Project, Series A, 8.75%, 6/01/29

 

 

1,375

 

 

1,589,885

 

County of Clayton Georgia, Tax Allocation Bonds,
Ellenwood Project, 7.50%, 7/01/33

 

 

1,335

 

 

1,319,047

 

DeKalb County Hospital Authority Georgia, RB, DeKalb
Medical Center Inc. Project, 6.13%, 9/01/40

 

 

1,805

 

 

1,866,117

 

Gainesville & Hall County Development Authority,
Refunding RB, Acts Retirement Life Community,
Series A-2, 6.63%, 11/15/39

 

 

645

 

 

681,552

 

Rockdale County Development Authority, RB, Visy Paper
Project, Series A, AMT, 6.13%, 1/01/34

 

 

1,680

 

 

1,688,215

 

 

 

 

 

 




 

 

 

 

 

 

7,506,498

 









Guam — 1.5%

 

 

 

 

 

 

 

Guam Government Waterworks Authority, Refunding RB,
Water, 6.00%, 7/01/25

 

 

515

 

 

527,885

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

250

 

 

267,255

 

6.75%, 11/15/29

 

 

440

 

 

487,362

 

7.00%, 11/15/39

 

 

455

 

 

509,786

 

Territory of Guam, RB, Section 30, Series A, 5.63%,
12/01/29

 

 

1,000

 

 

1,046,640

 

 

 

 

 

 




 

 

 

 

 

 

2,838,928

 









Illinois — 6.4%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB, American
Airlines Inc. Project, 5.50%, 12/01/30

 

 

2,860

 

 

2,395,393

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Navistar International, Recovery Zone, 6.50%,
10/15/40

 

 

650

 

 

674,381

 

Roosevelt University Project, 6.50%, 4/01/44

 

 

1,700

 

 

1,818,507

 

Rush University Medical Center Obligation Group,
Series A, 7.25%, 11/01/30

 

 

2,000

 

 

2,309,580

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Illinois (concluded)

 

 

 

 

 

 

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

CAB, Clare Water Tower, Series B, 0.04%,
5/15/50 (a)

 

$

615

 

$

7,755

 

Clare Water Tower, Series A-7, 6.13%, 5/15/41

 

 

1,435

 

 

947,875

 

Friendship Village of Schaumburg, 7.25%, 2/15/45

 

 

1,630

 

 

1,686,496

 

Primary Health Care Centers Program, 6.60%,
7/01/24

 

 

490

 

 

446,155

 

Metropolitan Pier & Exposition Authority, Refunding RB,
CAB, McCormick Place Expansion Project, Series B
(AGM), 6.25%, 6/15/46 (a)

 

 

4,015

 

 

452,812

 

Village of Lincolnshire Illinois, Special Tax Bonds,
Sedgebrook Project, 6.25%, 3/01/34

 

 

755

 

 

683,849

 

Village of Wheeling Illinois, Tax Allocation Bonds, North
Milwaukee/Lake-Cook TIF Project, 6.00%, 1/01/25

 

 

750

 

 

708,900

 

 

 

 

 

 




 

 

 

 

 

 

12,131,703

 









Indiana — 0.8%

 

 

 

 

 

 

 

Indiana Finance Authority, Refunding RB, Improvement,
U.S. Steel Corp., 6.00%, 12/01/26

 

 

620

 

 

659,934

 

Vigo County Hospital Authority Indiana, RB,
Union Hospital Inc. (b):

 

 

 

 

 

 

 

5.70%, 9/01/37

 

 

440

 

 

411,911

 

5.75%, 9/01/42

 

 

545

 

 

510,338

 

 

 

 

 

 




 

 

 

 

 

 

1,582,183

 









Kentucky — 0.4%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

 

645

 

 

683,623

 









Louisiana — 1.1%

 

 

 

 

 

 

 

Louisiana Local Government Environmental Facilities &
Community Development Authority, RB, Westlake
Chemical Corp. Projects, 6.75%, 11/01/32

 

 

2,000

 

 

2,121,920

 









Maryland — 2.7%

 

 

 

 

 

 

 

Maryland EDC, RB, Transportation Facilities Project,
Series A, 5.75%, 6/01/35

 

 

420

 

 

437,569

 

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc.,
5.75%, 9/01/25

 

 

1,675

 

 

1,710,175

 

Maryland Health & Higher Educational Facilities Authority,
RB, Washington Christian Academy, 5.50%, 7/01/38

 

 

410

 

 

176,288

 

Maryland Health & Higher Educational Facilities Authority,
Refunding RB, Doctor’s Community Hospital, 5.75%,
7/01/38

 

 

1,265

 

 

1,245,936

 

Maryland State Energy Financing Administration, RB,
Cogeneration, AES Warrior Run, AMT, 7.40%, 9/01/19

 

 

1,500

 

 

1,500,795

 

 

 

 

 

 




 

 

 

 

 

 

5,070,763

 









Massachusetts — 1.3%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB, First
Mortgage, Overlook Communities, Series A, 6.25%,
7/01/34

 

 

1,845

 

 

1,638,379

 

Massachusetts Development Finance Agency, Refunding
RB, Eastern Nazarene College, 5.63%, 4/01/19

 

 

40

 

 

39,773

 

Massachusetts Health & Educational Facilities Authority,
RB, Jordan Hospital, Series E, 6.75%, 10/01/33

 

 

850

 

 

852,278

 

 

 

 

 

 




 

 

 

 

 

 

2,530,430

 









Michigan — 2.8%

 

 

 

 

 

 

 

Advanced Technology Academy, RB, 6.00%, 11/01/37

 

 

625

 

 

604,744

 

County of Wayne Michigan, GO, Building Improvement,
Series A, 6.75%, 11/01/39

 

 

375

 

 

401,509

 

Monroe County Hospital Finance Authority, Refunding RB,
Mercy Memorial Hospital Corp. Obligation, 5.50%,
6/01/35

 

 

1,260

 

 

1,111,887

 

Royal Oak Hospital Finance Authority Michigan, Refunding
RB, William Beaumont Hospital, 8.25%, 9/01/39

 

 

2,575

 

 

3,095,304

 

 

 

 

 

 




 

 

 

 

 

 

5,213,444

 










 

 

 

See Notes to Financial Statements.




14

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Missouri — 0.5%

 

 

 

 

 

 

 

Kirkwood IDA Missouri, RB, Aberdeen Heights, Series A,
8.25%, 5/15/39

 

$

945

 

$

999,895

 









Multi-State — 0.3%

 

 

 

 

 

 

 

MuniMae TE Bond Subsidiary LLC, 7.50%,
6/30/49 (b)(c)(d)

 

 

653

 

 

600,682

 









Nevada — 0.2%

 

 

 

 

 

 

 

County of Clark Nevada, Special Assessment Bonds,
Special Improvement District No. 142, Local
Improvement, 6.38%, 8/01/23

 

 

370

 

 

360,983

 









New Hampshire — 0.4%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
RB, Catholic Medical Center, 5.00%, 7/01/36

 

 

835

 

 

738,190

 









New Jersey — 5.9%

 

 

 

 

 

 

 

New Jersey EDA, RB, Continental Airlines Inc. Project, AMT:

 

 

 

 

 

 

 

6.63%, 9/15/12

 

 

3,050

 

 

3,091,205

 

6.25%, 9/15/29

 

 

1,000

 

 

979,960

 

New Jersey EDA, Refunding RB, Newark Airport Marriott
Hotel, 7.00%, 10/01/14

 

 

1,500

 

 

1,505,580

 

New Jersey Educational Facilities Authority, Refunding RB,
University of Medicine & Dentistry, Series B:

 

 

 

 

 

 

 

7.13%, 12/01/23

 

 

670

 

 

792,168

 

7.50%, 12/01/32

 

 

1,065

 

 

1,236,081

 

New Jersey Health Care Facilities Financing Authority, RB,
Pascack Valley Hospital Association, 6.63%,
7/01/36 (e)(f)

 

 

1,870

 

 

19

 

New Jersey Health Care Facilities Financing Authority,
Refunding RB, St. Joseph’s Healthcare System,
6.63%, 7/01/38

 

 

1,680

 

 

1,761,497

 

New Jersey Transportation Trust Fund Authority, RB, CAB,
Transportation System, Series C (AMBAC), 5.05%,
12/15/35 (a)

 

 

2,760

 

 

645,923

 

Tobacco Settlement Financing Corp. New Jersey,
Refunding RB, Series 1A, 4.50%, 6/01/23

 

 

1,190

 

 

1,113,697

 

 

 

 

 

 




 

 

 

 

 

 

11,126,130

 









New York — 6.4%

 

 

 

 

 

 

 

Brooklyn Arena Local Development Corp., RB, Barclays
Center Project, 6.38%, 7/15/43

 

 

685

 

 

743,985

 

Chautauqua County Industrial Development Agency, RB,
NRG Dunkirk Power Project, 5.88%, 4/01/42

 

 

1,710

 

 

1,788,421

 

Dutchess County Industrial Development Agency
New York, RB, St. Francis Hospital, Series B, 7.50%,
3/01/29

 

 

1,000

 

 

1,004,890

 

Metropolitan Transportation Authority, RB, Series 2008C,
6.50%, 11/15/28

 

 

2,000

 

 

2,362,100

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

American Airlines Inc., JFK International Airport, AMT,
8.00%, 8/01/28

 

 

720

 

 

772,466

 

British Airways Plc Project, AMT, 7.63%, 12/01/32

 

 

1,730

 

 

1,772,385

 

Series C, 6.80%, 6/01/28

 

 

350

 

 

367,549

 

Special Needs Facilities Pooled Program, Series C-1,
6.50%, 7/01/24

 

 

830

 

 

804,660

 

New York Liberty Development Corp., Refunding RB,
Second Priority, Bank of America Tower at One Bryant
Park Project, 6.38%, 7/15/49

 

 

520

 

 

557,144

 

New York State Dormitory Authority, RB, North Shore-Long
Island Jewish Health System, Series A, 5.50%, 5/01/37

 

 

1,000

 

 

1,044,860

 

Yonkers Industrial Development Agency New York, RB,
Sarah Lawrence College Project, Series A, 6.00%,
6/01/41

 

 

850

 

 

904,451

 

 

 

 

 

 




 

 

 

 

 

 

12,122,911

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









North Carolina — 2.4%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency, RB, Duke
Energy Carolinas, Series B, 4.38%, 10/01/31

 

$

680

 

$

666,726

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Duke Energy Carolinas, Series B,
4.63%, 11/01/40

 

 

680

 

 

661,708

 

North Carolina Medical Care Commission, Refunding RB,
First Mortgage, Deerfield, Series A, 6.13%, 11/01/38

 

 

3,230

 

 

3,277,869

 

 

 

 

 

 




 

 

 

 

 

 

4,606,303

 









Ohio — 1.4%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB,
Asset-Backed, Senior Series A-2:

 

 

 

 

 

 

 

5.13%, 6/01/24

 

 

1,110

 

 

966,322

 

6.50%, 6/01/47

 

 

2,000

 

 

1,672,320

 

 

 

 

 

 




 

 

 

 

 

 

2,638,642

 









Pennsylvania — 6.6%

 

 

 

 

 

 

 

Allegheny County Hospital Development Authority,
Refunding RB, Health System, West Penn, Series A,
5.38%, 11/15/40

 

 

1,885

 

 

1,451,073

 

Bucks County IDA, RB, Ann’s Choice Inc. Facility, Series A,
6.13%, 1/01/25

 

 

1,160

 

 

1,170,997

 

Cumberland County Municipal Authority, RB, Diakon
Lutheran, 6.38%, 1/01/39

 

 

2,510

 

 

2,652,769

 

Lancaster County Hospital Authority, RB, Brethren Village
Project, Series A:

 

 

 

 

 

 

 

6.25%, 7/01/26

 

 

475

 

 

481,659

 

6.50%, 7/01/40

 

 

675

 

 

671,402

 

Montgomery County IDA Pennsylvania, MRB, Whitemarsh
Continuing Care, 6.25%, 2/01/35

 

 

1,700

 

 

1,537,344

 

Philadelphia Authority for Industrial Development,
RB, AMT:

 

 

 

 

 

 

 

Commercial Development, 7.75%, 12/01/17

 

 

3,000

 

 

3,003,840

 

Subordinate, Air Cargo, Series A, 7.50%, 1/01/25

 

 

1,600

 

 

1,581,776

 

 

 

 

 

 




 

 

 

 

 

 

12,550,860

 









Puerto Rico — 0.8%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 6.50%, 8/01/44

 

 

1,000

 

 

1,151,140

 

Puerto Rico Sales Tax Financing Corp., Refunding RB,
CAB, First Sub-Series C, 6.52%, 8/01/38 (a)

 

 

1,815

 

 

324,486

 

 

 

 

 

 




 

 

 

 

 

 

1,475,626

 









Rhode Island — 0.8%

 

 

 

 

 

 

 

Central Falls Detention Facility Corp., Refunding RB,
7.25%, 7/15/35

 

 

1,750

 

 

1,525,230

 









South Carolina — 0.4%

 

 

 

 

 

 

 

Connector 2000 Association Inc., RB, CAB, Senior
Series B, 11.47%, 1/01/14 (a)(e)(f)

 

 

1,075

 

 

141,308

 

South Carolina Jobs, EDA, Refunding RB, Palmetto
Health, 5.50%, 8/01/26

 

 

670

 

 

687,916

 

 

 

 

 

 




 

 

 

 

 

 

829,224

 









Tennessee — 0.1%

 

 

 

 

 

 

 

Shelby County Health Educational & Housing Facilities
Board, RB, Village at Germantown, 6.25%, 12/01/34

 

 

245

 

 

216,132

 









Texas — 10.9%

 

 

 

 

 

 

 

Bexar County Health Facilities Development Corp., RB,
Army Retirement Residence Project, 6.20%, 7/01/45

 

 

2,055

 

 

2,115,006

 

Brazos River Authority, Refunding RB, Texas Utility Co.,
Series, AMT, 7.70%, 4/01/33

 

 

2,530

 

 

936,100

 

Central Texas Regional Mobility Authority, RB:

 

 

 

 

 

 

 

CAB, 7.48%, 1/01/28 (a)

 

 

1,000

 

 

348,130

 

CAB, 7.78%, 1/01/33 (a)

 

 

2,150

 

 

507,336

 

CAB, 7.79%, 1/01/34 (a)

 

 

4,000

 

 

849,400

 

Senior Lien, 5.75%, 1/01/25

 

 

450

 

 

475,569

 


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

15




 

 


 

Schedule of Investments (continued)

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Texas (concluded)

 

 

 

 

 

 

 

City of Houston Texas, RB, Special Facilities, Continental
Airlines, Series E, AMT, 6.75%, 7/01/21

 

$

1,865

 

$

1,872,628

 

Danbury Higher Education Authority Inc., RB, A.W. Brown
Fellowship Charter, Series A (ACA), 5.13%, 8/15/36

 

 

1,000

 

 

1,168,240

 

Harris County Health Facilities Development Corp.,
Refunding RB, Memorial Hermann Healthcare System,
Series B, 7.25%, 12/01/35

 

 

1,110

 

 

1,274,424

 

Matagorda County Navigation District No. 1 Texas,
Refunding RB, Central Power & Light Co. Project,
Series A, 6.30%, 11/01/29

 

 

850

 

 

939,259

 

North Texas Tollway Authority, RB, Toll, 2nd Tier, Series F,
6.13%, 1/01/31

 

 

1,650

 

 

1,780,267

 

Tarrant County Cultural Education Facilities Finance Corp.,
RB, Series A:

 

 

 

 

 

 

 

CC Young Memorial Home, 8.00%, 2/15/38

 

 

710

 

 

749,859

 

Senior Living Center Project, 8.25%, 11/15/44

 

 

1,710

 

 

1,729,374

 

Texas Private Activity Bond Surface Transportation Corp.,
RB, Senior Lien:

 

 

 

 

 

 

 

LBJ Infrastructure Group LLC, LBJ Freeway Managed
Lanes Project, 7.00%, 6/30/40

 

 

1,815

 

 

1,972,869

 

NTE Mobility Partners LLC, North Tarrant Express
Managed Lanes Project, 6.88%, 12/31/39

 

 

1,605

 

 

1,741,650

 

Texas State Public Finance Authority, Refunding ERB,
KIPP Inc., Series A (ACA), 5.00%, 2/15/28

 

 

2,250

 

 

2,173,995

 

 

 

 

 

 




 

 

 

 

 

 

20,634,106

 









U.S. Virgin Islands — 1.1%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21

 

 

2,100

 

 

2,136,435

 









Utah — 1.2%

 

 

 

 

 

 

 

County of Carbon Utah, Refunding RB, Laidlaw
Environmental, Series A, AMT, 7.45%, 7/01/17

 

 

2,240

 

 

2,245,331

 









Vermont — 0.3%

 

 

 

 

 

 

 

Vermont Economic Development Authority, Refunding
MRB, Wake Robin Corp. Project, Series A (ACA),
6.30%, 3/01/33

 

 

650

 

 

632,482

 









Virginia — 2.2%

 

 

 

 

 

 

 

Dulles Town Center Community Development Authority,
Special Assessment Bonds, Dulles Town Center Project,
6.25%, 3/01/26

 

 

2,330

 

 

2,284,775

 

Tobacco Settlement Financing Corp. Virginia, Refunding
RB, Senior Series B1, 5.00%, 6/01/47

 

 

2,790

 

 

1,958,747

 

 

 

 

 

 




 

 

 

 

 

 

4,243,522

 









Wisconsin — 2.2%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

New Castle Place Project, Series A, 7.00%,
12/01/31

 

 

1,320

 

 

1,322,416

 

Wheaton Franciscan Healthcare, 5.25%, 8/15/34

 

 

2,540

 

 

2,385,619

 

Wisconsin Health & Educational Facilities Authority,
Refunding RB, St. John’s Communities Inc., Series A:

 

 

 

 

 

 

 

7.25%, 9/15/29

 

 

175

 

 

181,055

 

7.63%, 9/15/39

 

 

350

 

 

368,777

 

 

 

 

 

 




 

 

 

 

 

 

4,257,867

 









Wyoming — 1.3%

 

 

 

 

 

 

 

County of Sweetwater Wyoming, Refunding RB, FMC Corp.
Project, AMT, 5.60%, 12/01/35

 

 

2,500

 

 

2,522,950

 









Total Municipal Bonds — 92.0%

 

 

 

 

 

174,733,702

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

Par
(000)

 

Value

 







District of Columbia — 1.6%

 

 

 

 

 

 

 

District of Columbia Water & Sewer Authority, RB,
Series A, 6.00%, 10/01/35

 

$

2,730

 

$

3,107,869

 









Florida — 3.3%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB, Miami International
Airport, Series A, AMT (AGC), 5.25%, 10/01/33

 

 

6,130

 

 

6,232,984

 









Virginia — 3.1%

 

 

 

 

 

 

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.38%,
7/01/36

 

 

5,710

 

 

5,816,548

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 8.0%

 

 

 

 

 

15,157,401

 









Total Long-Term Investments
(Cost — $186,374,178) — 100.0%

 

 

 

 

 

189,891,103

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.14% (h)(i)

 

 

998,663

 

 

998,663

 









Total Short-Term Securities
(Cost — $998,663) — 0.5%

 

 

 

 

 

998,663

 









Total Investments (Cost — $187,372,841*) — 100.5%

 

 

 

 

 

190,889,766

 

Other Assets Less Liabilities — 3.3%

 

 

 

 

 

6,330,193

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (3.8)%

 

 

 

 

 

(7,289,948

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

189,930,011

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

179,453,252

 

 

 




Gross unrealized appreciation

 

$

12,728,160

 

Gross unrealized depreciation

 

 

(8,577,092

)

 

 




Net unrealized appreciation

 

$

4,151,068

 

 

 





 

 

(a)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(b)

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

 

 

(c)

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.

 

 

(d)

Variable rate security. Rate shown is as of report date.

 

 

(e)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(f)

Non-income producing security.

 

 

(g)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(h)

Investments in companies considered to be an affiliate of the Fund during the period, 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,
2010

Net
Activity

Shares
Held at
October 31,
2010

Income






FFI Institutional Tax-Exempt Fund

648,958

349,705

998,663

$993







 

 

(i)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.




16

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (concluded)

BlackRock Apex Municipal Fund, Inc. (APX)


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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 Fund’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of October 31, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

189,891,103

 

 

$

189,891,103

 

Short-Term Securities

 

$

998,663

 

 

 

 

 

998,663

 














Total

 

$

998,663

 

$

189,891,103

 

 

$

190,889,766

 















 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

17




 

 


 

 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 0.2%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series A, 5.25%,
1/01/17

 

$

530

 

$

501,852

 









Alaska — 0.1%

 

 

 

 

 

 

 

Alaska Industrial Development & Export Authority, RB,
Williams Lynxs, Alaska Cargoport, AMT, 7.80%, 5/01/14

 

 

395

 

 

393,416

 









Arizona — 6.7%

 

 

 

 

 

 

 

Coconino County Pollution Control Corp. Arizona,
Refunding RB, Tucson Electric Power-Navajo, Series A,
AMT, 7.13%, 10/01/32

 

 

3,000

 

 

3,004,530

 

Maricopa County IDA Arizona, RB, Arizona Charter
Schools Project, Series A, 6.63%, 7/01/20

 

 

1,520

 

 

1,188,154

 

Phoenix IDA Arizona, Refunding RB, America West
Airlines Inc. Project, AMT, 6.30%, 4/01/23

 

 

4,800

 

 

4,216,032

 

Pima County IDA, RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project, Series E, 7.25%,
7/01/31

 

 

1,365

 

 

1,388,464

 

Tucson Electric Power Co., Series A, 5.25%,
10/01/40

 

 

2,380

 

 

2,369,218

 

Pima County IDA, Refunding IDRB, Tucson Electric Power,
5.75%, 9/01/29

 

 

670

 

 

692,365

 

Pima County IDA, Refunding RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project, Series O, 5.25%,
7/01/31

 

 

450

 

 

400,522

 

Charter Schools II, Series A, 6.75%, 7/01/31

 

 

670

 

 

672,466

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

1,840

 

 

1,777,845

 

5.00%, 12/01/37

 

 

1,350

 

 

1,269,891

 

Show Low Improvement District, Special Assessment
Bonds, District No. 5, 6.38%, 1/01/15

 

 

745

 

 

746,043

 

University Medical Center Corp., Arizona, RB:

 

 

 

 

 

 

 

6.25%, 7/01/29

 

 

280

 

 

304,363

 

6.50%, 7/01/39

 

 

500

 

 

543,775

 

 

 

 

 

 




 

 

 

 

 

 

18,573,668

 









California — 3.3%

 

 

 

 

 

 

 

California Statewide Communities Development
Authority, Refunding RB:

 

 

 

 

 

 

 

American Baptist Homes of the West, 6.25%,
10/01/39

 

 

1,290

 

 

1,309,285

 

Senior Living, Southern California, 7.00%, 11/15/29

 

 

600

 

 

655,836

 

Senior Living, Southern California, 7.25%, 11/15/41

 

 

2,060

 

 

2,266,330

 

City of Fontana California, Special Tax Bonds, Refunding,
Community Facilities District No. 22-Sierra, Series H,
6.00%, 9/01/34

 

 

1,320

 

 

1,320,317

 

State of California, GO, Various Purpose, 6.00%,
3/01/33

 

 

3,075

 

 

3,532,068

 

 

 

 

 

 




 

 

 

 

 

 

9,083,836

 









Colorado — 2.9%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Refunding RB, Total
Longterm Care National Obligated Group Project,
Series A, 6.00%, 11/15/30

 

 

610

 

 

618,241

 

E-470 Public Highway Authority, Refunding RB, CAB,
7.08%, 9/01/35 (a)

 

 

2,190

 

 

399,368

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee:

 

 

 

 

 

 

 

Series A, 7.10%, 9/01/14

 

 

1,220

 

 

1,245,144

 

Series A, 7.30%, 9/01/22

 

 

2,095

 

 

2,097,975

 

Series B, 7.45%, 9/01/31

 

 

200

 

 

193,474

 

Plaza Metropolitan District No. 1 Colorado, Tax Allocation
Bonds, Tax Increment:

 

 

 

 

 

 

 

Public Improvement Fee, 8.00%, 12/01/25

 

 

2,850

 

 

2,977,595

 

Subordinate Public Improvement Fee, 8.13%, 12/01/25

 

 

525

 

 

488,187

 

 

 

 

 

 




 

 

 

 

 

 

8,019,984

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Connecticut — 2.9%

 

 

 

 

 

 

 

Connecticut State Development Authority, RB, AFCO
Cargo BDL LLC Project, AMT, 8.00%, 4/01/30

 

$

3,490

 

$

3,391,129

 

Harbor Point Infrastructure Improvement District, Tax
Allocation Bonds, Harbor Point Project, Series A,
7.88%, 4/01/39

 

 

2,340

 

 

2,514,915

 

Mohegan Tribe of Indians of Connecticut, RB, Public
Improvement, Priority Distribution, 6.25%, 1/01/31

 

 

2,610

 

 

2,161,680

 

 

 

 

 

 




 

 

 

 

 

 

8,067,724

 









Delaware — 0.9%

 

 

 

 

 

 

 

Delaware State EDA, RB, Exempt Facilities, Indian River
Power, 5.38%, 10/01/45

 

 

2,505

 

 

2,495,080

 









District of Columbia — 2.1%

 

 

 

 

 

 

 

District of Columbia, RB, Methodist Home District of
Columbia, Series A:

 

 

 

 

 

 

 

7.38%, 1/01/30

 

 

985

 

 

1,006,936

 

7.50%, 1/01/39

 

 

1,615

 

 

1,652,339

 

District of Columbia Tobacco Settlement Financing Corp.,
Refunding RB, Asset-Backed, 6.50%, 5/15/33

 

 

1,055

 

 

1,042,667

 

Metropolitan Washington Airports Authority, RB, CAB, 2nd
Senior Lien, Series B (AGC), 6.54%, 10/01/30 (a)

 

 

7,000

 

 

2,147,460

 

 

 

 

 

 




 

 

 

 

 

 

5,849,402

 









Florida — 7.4%

 

 

 

 

 

 

 

County of Miami-Dade Florida, Refunding RB, Miami
International Airport, Series A-1, 5.38%, 10/01/41

 

 

705

 

 

727,680

 

Greater Orlando Aviation Authority Florida, RB, Special
Purpose, JetBlue Airways Corp., AMT, 6.38%, 11/15/26

 

 

1,180

 

 

1,151,645

 

Harbor Bay Community Development District Florida,
Special Assessment Bonds, Series A, 7.00%, 5/01/33

 

 

455

 

 

456,024

 

Hillsborough County IDA, RB, AMT, National Gypsum Co.:

 

 

 

 

 

 

 

Series A, 7.13%, 4/01/30

 

 

2,000

 

 

1,949,640

 

Series B, 7.13%, 4/01/30

 

 

1,540

 

 

1,501,223

 

Jacksonville Economic Development Commission, RB,
Gerdau Ameristeel US Inc., AMT, 5.30%, 5/01/37

 

 

1,300

 

 

1,143,493

 

Jacksonville Economic Development Commission,
Refunding RB, Florida Proton Therapy Institute,
Series A, 6.00%, 9/01/17

 

 

765

 

 

803,372

 

Lee County IDA Florida, RB, Series A, Lee Charter
Foundation, 5.38%, 6/15/37

 

 

2,620

 

 

2,257,733

 

Midtown Miami Community Development District,
Special Assessment Bonds, Series A, 6.25%, 5/01/37

 

 

3,255

 

 

3,201,195

 

Santa Rosa Bay Bridge Authority, RB, 6.25%, 7/01/28

 

 

3,040

 

 

1,411,198

 

Sarasota County Health Facilities Authority, Refunding RB,
Village on the Isle Project:

 

 

 

 

 

 

 

5.50%, 1/01/27

 

 

585

 

 

560,184

 

5.50%, 1/01/32

 

 

795

 

 

748,532

 

Sarasota County Public Hospital District, RB, Sarasota
Memorial Hospital Project, Series A, 5.63%, 7/01/39

 

 

615

 

 

647,035

 

Sumter Landing Community Development District Florida,
RB, Sub-Series B, 5.70%, 10/01/38

 

 

2,350

 

 

1,954,988

 

Tolomato Community Development District, Special
Assessment Bonds, Special Assessment, 6.65%,
5/01/40

 

 

2,680

 

 

1,970,631

 

 

 

 

 

 




 

 

 

 

 

 

20,484,573

 










 

 

 

See Notes to Financial Statements.




18

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Georgia — 3.3%

 

 

 

 

 

 

 

City of Atlanta Georgia, Tax Allocation Bonds, Princeton
Lakes Project, 5.50%, 1/01/31

 

$

640

 

$

586,016

 

Clayton County Development Authority, RB, Delta Air
Lines Inc. Project, Series A, 8.75%, 6/01/29

 

 

1,990

 

 

2,300,997

 

County of Clayton Georgia, Tax Allocation Bonds,
Ellenwood Project, 7.50%, 7/01/33

 

 

1,775

 

 

1,753,789

 

DeKalb County Hospital Authority Georgia, RB, DeKalb
Medical Center Inc. Project, 6.13%, 9/01/40

 

 

1,100

 

 

1,137,246

 

Gainesville & Hall County Development Authority,
Refunding RB, Acts Retirement Life Community,
Series A-2:

 

 

 

 

 

 

 

6.38%, 11/15/29

 

 

700

 

 

740,607

 

6.63%, 11/15/39

 

 

235

 

 

248,318

 

Rockdale County Development Authority, RB, Visy Paper
Project, Series A, AMT, 6.13%, 1/01/34

 

 

2,435

 

 

2,446,907

 

 

 

 

 

 




 

 

 

 

 

 

9,213,880

 









Guam — 1.5%

 

 

 

 

 

 

 

Guam Government Waterworks Authority, Refunding RB,
Water, 6.00%, 7/01/25

 

 

750

 

 

768,765

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

365

 

 

390,192

 

6.75%, 11/15/29

 

 

635

 

 

703,351

 

7.00%, 11/15/39

 

 

660

 

 

739,471

 

Territory of Guam, RB, Section 30, Series A, 5.63%,
12/01/29

 

 

1,460

 

 

1,528,094

 

 

 

 

 

 




 

 

 

 

 

 

4,129,873

 









Illinois — 5.6%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB, American
Airlines Inc. Project, 5.50%, 12/01/30

 

 

4,140

 

 

3,467,457

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Navistar International, Recovery Zone, 6.50%,
10/15/40

 

 

950

 

 

985,635

 

Roosevelt University Project, 6.50%, 4/01/44

 

 

2,470

 

 

2,642,184

 

Rush University Medical Center Obligation Group,
Series B, 7.25%, 11/01/30

 

 

1,170

 

 

1,351,104

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

CAB, Clare Water Tower, Series B, 0.04%,
5/15/50 (a)

 

 

885

 

 

11,160

 

Clare Water Tower, Series A-7, 6.13%, 5/15/41

 

 

2,065

 

 

1,364,015

 

Friendship Village of Schaumburg, 7.25%, 2/15/45

 

 

2,370

 

 

2,452,144

 

Primary Health Care Centers Program, 6.60%,
7/01/24

 

 

685

 

 

623,706

 

Metropolitan Pier & Exposition Authority, Refunding RB,
CAB, McCormick Place Expansion Project, Series B
(AGM), 6.25%, 6/15/46 (a)

 

 

5,845

 

 

659,199

 

Village of Lincolnshire Illinois, Special Tax Bonds,
Sedgebrook Project, 6.25%, 3/01/34

 

 

1,070

 

 

969,163

 

Village of Wheeling Illinois, Tax Allocation Bonds, North
Milwaukee/Lake-Cook TIF Project, 6.00%, 1/01/25

 

 

825

 

 

779,790

 

 

 

 

 

 




 

 

 

 

 

 

15,305,557

 









Indiana — 0.8%

 

 

 

 

 

 

 

Indiana Finance Authority, Refunding RB, Improvement,
U.S. Steel Corp., 6.00%, 12/01/26

 

 

900

 

 

957,969

 

Vigo County Hospital Authority Indiana, RB, Union
Hospital Inc. (b):

 

 

 

 

 

 

 

5.70%, 9/01/37

 

 

615

 

 

575,738

 

5.75%, 9/01/42

 

 

765

 

 

716,346

 

 

 

 

 

 




 

 

 

 

 

 

2,250,053

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Kentucky — 0.4%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

$

935

 

$

990,988

 









Louisiana — 1.1%

 

 

 

 

 

 

 

Louisiana Local Government Environmental Facilities &
Community Development Authority, RB, Westlake
Chemical Corp. Projects, 6.75%, 11/01/32

 

 

3,000

 

 

3,182,880

 









Maryland — 2.3%

 

 

 

 

 

 

 

Maryland EDC, RB, Transportation Facilities Project,
Series A, 5.75%, 6/01/35

 

 

615

 

 

640,726

 

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc.,
5.75%, 9/01/25

 

 

2,435

 

 

2,486,135

 

Maryland Health & Higher Educational Facilities Authority,
RB, Washington Christian Academy, 5.50%, 7/01/38

 

 

590

 

 

253,682

 

Maryland Health & Higher Educational Facilities Authority,
Refunding RB, Doctor’s Community Hospital, 5.75%,
7/01/38

 

 

1,845

 

 

1,817,196

 

Maryland State Energy Financing Administration, RB,
Cogeneration, AES Warrior Run, AMT, 7.40%, 9/01/19

 

 

1,080

 

 

1,080,572

 

 

 

 

 

 




 

 

 

 

 

 

6,278,311

 









Massachusetts — 0.4%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, Refunding
RB, Eastern Nazarene College, 5.63%, 4/01/29

 

 

80

 

 

74,818

 

Massachusetts Health & Educational Facilities Authority,
RB, Jordan Hospital, Series E, 6.75%, 10/01/33

 

 

1,150

 

 

1,153,082

 

 

 

 

 

 




 

 

 

 

 

 

1,227,900

 









Michigan — 2.7%

 

 

 

 

 

 

 

Advanced Technology Academy, RB, 6.00%, 11/01/37

 

 

900

 

 

870,831

 

County of Wayne Michigan, GO, Building Improvement,
Series A, 6.75%, 11/01/39

 

 

545

 

 

583,526

 

Monroe County Hospital Finance Authority, Refunding RB,
Mercy Memorial Hospital Corp. Obligation, 5.50%,
6/01/35

 

 

1,740

 

 

1,535,463

 

Royal Oak Hospital Finance Authority Michigan,
Refunding RB, William Beaumont Hospital, 8.25%,
9/01/39

 

 

3,735

 

 

4,489,694

 

 

 

 

 

 




 

 

 

 

 

 

7,479,514

 









Minnesota — 0.7%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, Refunding RB, Fairview
Health Services, Series A, 6.75%, 11/15/32

 

 

1,785

 

 

2,035,418

 









Missouri — 0.5%

 

 

 

 

 

 

 

Kirkwood IDA Missouri, RB, Aberdeen Heights, Series A,
8.25%, 5/15/39

 

 

1,370

 

 

1,449,583

 









Multi-State — 0.3%

 

 

 

 

 

 

 

MuniMae TE Bond Subsidiary LLC, 7.50%,
6/30/49 (b)(c)(d)

 

 

933

 

 

858,116

 









Nevada — 0.2%

 

 

 

 

 

 

 

County of Clark Nevada, Special Assessment Bonds,
Special Improvement District No. 142, Local
Improvement, 6.38%, 8/01/23

 

 

605

 

 

590,256

 









New Hampshire — 0.4%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
RB, Catholic Medical Center, 5.00%, 7/01/36

 

 

1,165

 

 

1,029,930

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

19




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New Jersey — 7.0%

 

 

 

 

 

 

 

New Jersey EDA, RB, Continental Airlines Inc. Project, AMT:

 

 

 

 

 

 

 

6.63%, 9/15/12

 

$

1,000

 

$

1,013,510

 

6.25%, 9/15/19

 

 

2,000

 

 

1,986,400

 

6.40%, 9/15/23

 

 

1,000

 

 

999,910

 

6.25%, 9/15/29

 

 

3,330

 

 

3,263,267

 

9.00%, 6/01/33 (d)

 

 

1,250

 

 

1,329,237

 

New Jersey EDA, Refunding RB, Newark Airport Marriott
Hotel, 7.00%, 10/01/14

 

 

2,500

 

 

2,509,300

 

New Jersey Educational Facilities Authority, Refunding RB,
University of Medicine & Dentistry, Series B, 7.50%,
12/01/32

 

 

2,510

 

 

2,913,206

 

New Jersey Health Care Facilities Financing Authority, RB,
Pascack Valley Hospital Association, 6.63%,
7/01/36 (e)(f)

 

 

2,000

 

 

20

 

New Jersey Health Care Facilities Financing Authority,
Refunding RB, St. Joseph’s Healthcare System, 6.63%,
7/01/38

 

 

2,410

 

 

2,526,909

 

New Jersey Transportation Trust Fund Authority, RB, CAB,
Transportation System, Series C (AMBAC), 5.05%,
12/15/35 (a)

 

 

3,450

 

 

807,404

 

Tobacco Settlement Financing Corp. New Jersey,
Refunding RB, Series 1A, 4.50%, 6/01/23

 

 

2,310

 

 

2,161,883

 

 

 

 

 

 




 

 

 

 

 

 

19,511,046

 









New York — 6.2%

 

 

 

 

 

 

 

Brooklyn Arena Local Development Corp., RB, Barclays
Center Project, 6.38%, 7/15/43

 

 

1,000

 

 

1,086,110

 

Chautauqua County Industrial Development Agency, RB,
NRG Dunkirk Power Project, 5.88%, 4/01/42

 

 

2,485

 

 

2,598,962

 

Dutchess County Industrial Development Agency
New York, Refunding RB, St. Francis Hospital, Series A,
7.50%, 3/01/29

 

 

1,400

 

 

1,406,846

 

Metropolitan Transportation Authority, RB, Series 2008C,
6.50%, 11/15/28

 

 

3,685

 

 

4,352,169

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

American Airlines Inc., JFK International Airport, AMT,
8.00%, 8/01/28 (d)

 

 

1,045

 

 

1,121,149

 

British Airways Plc Project, AMT, 7.63%, 12/01/32

 

 

2,400

 

 

2,458,800

 

Series C, 6.80%, 6/01/28

 

 

510

 

 

535,571

 

Special Needs Facilities Pooled Program, Series C-1,
6.63%, 7/01/29

 

 

1,515

 

 

1,424,479

 

New York Liberty Development Corp., Refunding RB,
Second Priority, Bank of America Tower at One Bryant
Park Project, 6.38%, 7/15/49

 

 

750

 

 

803,573

 

Yonkers Industrial Development Agency New York, RB,
Sarah Lawrence College Project, Series A, 6.00%,
6/01/41

 

 

1,240

 

 

1,319,435

 

 

 

 

 

 




 

 

 

 

 

 

17,107,094

 









North Carolina — 1.6%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency, RB,
Duke Energy Carolinas, Series B, 4.38%, 10/01/31

 

 

985

 

 

965,773

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Duke Energy Carolinas, Series B,
4.63%, 11/01/40

 

 

985

 

 

958,503

 

North Carolina Medical Care Commission, Refunding RB,
First Mortgage, Deerfield, Series A, 6.13%, 11/01/38

 

 

2,335

 

 

2,369,605

 

 

 

 

 

 




 

 

 

 

 

 

4,293,881

 









Ohio — 1.6%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB,
Asset-Backed, Senior Series A-2:

 

 

 

 

 

 

 

5.13%, 6/01/24

 

 

2,250

 

 

1,958,760

 

6.50%, 6/01/47

 

 

3,935

 

 

2,508,481

 

 

 

 

 

 




 

 

 

 

 

 

4,467,241

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Pennsylvania — 8.5%

 

 

 

 

 

 

 

Allegheny County Hospital Development Authority,
Refunding RB, Health System, West Penn, Series A,
5.38%, 11/15/40

 

$

2,460

 

$

1,893,708

 

Bucks County IDA, RB, Ann’s Choice Inc. Facility, Series A:

 

 

 

 

 

 

 

6.13%, 1/01/25

 

 

200

 

 

201,896

 

6.25%, 1/01/35

 

 

1,550

 

 

1,523,480

 

Cumberland County Municipal Authority, RB, Diakon
Lutheran, 6.38%, 1/01/39

 

 

3,655

 

 

3,862,896

 

Lancaster County Hospital Authority, RB, Brethren Village
Project, Series A:

 

 

 

 

 

 

 

6.25%, 7/01/26

 

 

685

 

 

694,604

 

6.50%, 7/01/40

 

 

990

 

 

984,723

 

Montgomery County IDA Pennsylvania, MRB, Whitemarsh
Continuing Care, 6.13%, 2/01/28

 

 

2,330

 

 

2,146,979

 

Pennsylvania Economic Development Financing Authority,
RB, AMT:

 

 

 

 

 

 

 

National Gypsum Co., Series A, 6.25%, 11/01/27

 

 

3,250

 

 

2,900,332

 

Reliant Energy, Series B, 6.75%, 12/01/36

 

 

2,040

 

 

2,101,118

 

Philadelphia Authority for Industrial Development,
RB, AMT:

 

 

 

 

 

 

 

Commercial Development, 7.75%, 12/01/17

 

 

5,000

 

 

5,006,400

 

Subordinate, Air Cargo, Series A, 7.50%, 1/01/25

 

 

2,270

 

 

2,244,145

 

 

 

 

 

 




 

 

 

 

 

 

23,560,281

 









Puerto Rico — 0.9%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 6.50%, 8/01/44

 

 

1,650

 

 

1,899,381

 

Puerto Rico Sales Tax Financing Corp., Refunding RB,
CAB, First Sub-Series C, 6.52%, 8/01/38 (a)

 

 

2,630

 

 

470,191

 

 

 

 

 

 




 

 

 

 

 

 

2,369,572

 









Rhode Island — 0.8%

 

 

 

 

 

 

 

Central Falls Detention Facility Corp., Refunding RB,
7.25%, 7/15/35

 

 

2,495

 

 

2,174,542

 









South Carolina — 0.4%

 

 

 

 

 

 

 

Connector 2000 Association Inc., RB, CAB, Senior
Series B, 11.47%, 1/01/14 (a)(e)(f)

 

 

1,485

 

 

195,203

 

South Carolina Jobs, EDA, Refunding RB, Palmetto
Health, 5.50%, 8/01/26

 

 

975

 

 

1,001,072

 

 

 

 

 

 




 

 

 

 

 

 

1,196,275

 









Tennessee — 0.6%

 

 

 

 

 

 

 

Knox County Health Educational & Housing Facilities
Board Tennessee, Refunding RB, Covenant, Series A
(AGM), 4.69%, 1/01/40 (a)

 

 

5,820

 

 

1,212,190

 

Shelby County Health Educational & Housing Facilities
Board, RB, Village at Germantown, 6.25%, 12/01/34

 

 

355

 

 

313,170

 

 

 

 

 

 




 

 

 

 

 

 

1,525,360

 









Texas — 9.7%

 

 

 

 

 

 

 

Bexar County Health Facilities Development Corp., RB,
Army Retirement Residence Project, 6.20%, 7/01/45

 

 

2,985

 

 

3,072,162

 

Brazos River Authority, Refunding RB, Texas Utility Co.,
Series, AMT, 7.70%, 4/01/33

 

 

2,550

 

 

943,500

 

Central Texas Regional Mobility Authority, RB:

 

 

 

 

 

 

 

CAB, 7.56%, 1/01/29 (a)

 

 

2,000

 

 

643,340

 

CAB, 7.65%, 1/01/30 (a)

 

 

1,170

 

 

341,324

 

CAB, 7.71%, 1/01/31 (a)

 

 

2,000

 

 

542,880

 

CAB, 7.77%, 1/01/32 (a)

 

 

3,500

 

 

886,935

 

CAB, 7.78%, 1/01/33 (a)

 

 

1,540

 

 

363,394

 

Senior Lien, 5.75%, 1/01/25

 

 

650

 

 

686,933

 

City of Houston Texas, RB, Special Facilities, Continental
Airlines, Series E, AMT, 6.75%, 7/01/21

 

 

2,685

 

 

2,695,982

 

Harris County Health Facilities Development Corp.,
Refunding RB, Memorial Hermann Healthcare System,
Series B, 7.13%, 12/01/31

 

 

1,500

 

 

1,724,925

 


 

 

 

See Notes to Financial Statements.




20

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

La Vernia Higher Education Finance Corp., RB, KIPP Inc.,
6.38%, 8/15/44

 

$

860

 

$

909,063

 

Matagorda County Navigation District No. 1 Texas,
Refunding RB, Central Power & Light Co. Project,
Series A, 6.30%, 11/01/29

 

 

1,240

 

 

1,370,212

 

North Texas Tollway Authority, RB, Toll, 2nd Tier, Series F,
6.13%, 1/01/31

 

 

2,775

 

 

2,994,086

 

Tarrant County Cultural Education Facilities Finance
Corp., RB, Series A:

 

 

 

 

 

 

 

CC Young Memorial Home, 8.00%, 2/15/38

 

 

1,035

 

 

1,093,105

 

Senior Living Center Project, 8.25%, 11/15/44

 

 

2,490

 

 

2,518,212

 

Texas Private Activity Bond Surface Transportation
Corp., RB, Senior Lien:

 

 

 

 

 

 

 

LBJ Infrastructure Group LLC, LBJ Freeway Managed
Lanes Project, 7.00%, 6/30/40

 

 

2,640

 

 

2,869,627

 

NTE Mobility Partners LLC, North Tarrant Express
Managed Lanes Project, 6.88%, 12/31/39

 

 

2,330

 

 

2,528,376

 

Texas State Public Finance Authority, Refunding ERB,
KIPP Inc., Series A (ACA), 5.00%, 2/15/28

 

 

575

 

 

555,577

 

 

 

 

 

 




 

 

 

 

 

 

26,739,633

 









U.S. Virgin Islands — 1.1%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21

 

 

3,000

 

 

3,052,050

 









Utah — 0.6%

 

 

 

 

 

 

 

County of Carbon Utah, Refunding RB, Laidlaw
Environmental, Series A, AMT, 7.45%, 7/01/17

 

 

1,660

 

 

1,663,951

 









Vermont — 0.3%

 

 

 

 

 

 

 

Vermont Economic Development Authority, Refunding
MRB, Wake Robin Corp. Project, Series A (ACA), 6.30%,
3/01/33

 

 

950

 

 

924,397

 









Virginia — 2.0%

 

 

 

 

 

 

 

Dulles Town Center Community Development Authority,
Special Assessment Bonds, Dulles Town Center Project,
6.25%, 3/01/26

 

 

1,410

 

 

1,382,632

 

Fairfax County EDA, Refunding RB, Goodwin House Inc.:

 

 

 

 

 

 

 

5.13%, 10/01/37

 

 

585

 

 

583,701

 

5.13%, 10/01/42

 

 

450

 

 

444,060

 

Lexington IDA, Refunding MRB, Kendal at Lexington,
Series A, 5.38%, 1/01/28

 

 

40

 

 

36,382

 

Tobacco Settlement Financing Corp. Virginia, Refunding
RB, Senior Series B1, 5.00%, 6/01/47

 

 

4,350

 

 

3,053,961

 

 

 

 

 

 




 

 

 

 

 

 

5,500,736

 









Wisconsin — 2.2%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

New Castle Place Project, Series A, 7.00%,
12/01/31

 

 

1,855

 

 

1,858,395

 

Wheaton Franciscan Healthcare, 5.25%, 8/15/34

 

 

3,695

 

 

3,470,418

 

Wisconsin Health & Educational Facilities Authority,
Refunding RB, St. John’s Communities Inc., Series A:

 

 

 

 

 

 

 

7.25%, 9/15/29

 

 

250

 

 

258,650

 

7.63%, 9/15/39

 

 

505

 

 

532,093

 

 

 

 

 

 




 

 

 

 

 

 

6,119,556

 









Wyoming — 1.3%

 

 

 

 

 

 

 

County of Sweetwater Wyoming, Refunding RB, FMC
Corp. Project, AMT, 5.60%, 12/01/35

 

 

3,600

 

 

3,633,048

 









Total Municipal Bonds — 91.5%

 

 

 

 

 

253,330,457

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

Par
(000)

 

Value

 









District of Columbia — 1.6%

 

 

 

 

 

 

 

District of Columbia Water & Sewer Authority, RB,
Series A, 6.00%, 10/01/35

 

$

3,951

 

$

4,496,733

 









Florida — 3.3%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB, Miami International
Airport, Series A, AMT (AGC), 5.25%, 10/01/33

 

 

8,870

 

 

9,019,016

 









Virginia — 3.2%

 

 

 

 

 

 

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.38%,
7/01/36

 

 

8,690

 

 

8,852,156

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 8.1%

 

 

 

 

 

22,367,905

 









Total Long-Term Investments
(Cost — $270,850,753) — 99.6%

 

 

 

 

 

275,698,362

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.12% (h)(i)

 

 

2,949,596

 

 

2,949,596

 









Total Short-Term Securities
(Cost — $2,949,596) — 1.1%

 

 

 

 

 

2,949,596

 









Total Investments (Cost — $273,800,349*) — 100.7%

 

 

 

 

 

278,647,958

 

 

 

 

 

 

 

 

 

Other Assets Less Liabilities — 3.2%

 

 

 

 

 

8,909,854

 

 

 

 

 

 

 

 

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (3.9)%

 

 

 

 

 

(10,762,397

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

276,795,415

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

262,507,383

 

 

 




Gross unrealized appreciation

 

$

17,379,332

 

Gross unrealized depreciation

 

 

(11,994,403

)

 

 




Net unrealized appreciation

 

$

5,384,929

 

 

 





 

 

(a)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(b)

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

 

 

(c)

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.

 

 

(d)

Variable rate security. Rate shown is as of report date.

 

 

(e)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(f)

Non-income producing security.

 

 

(g)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(h)

Investments in companies considered to be an affiliate of the Fund during the period, 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,
2010

Net
Activity

Shares
Held at
October 31,
2010

Income






FFI Institutional Tax-Exempt Fund

149,925

2,799,671

2,949,596

$1,248







 

 

(i)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

21




 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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 Fund’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of October 31, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

275,698,362

 

 

 

$

275,698,362

 

Short-Term Securities

 

$

2,949,596

 

 

 

 

 

 

2,949,596

 

 

 













Total

 

$

2,949,596

 

$

275,698,362

 

 

 

$

278,647,958

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

See Notes to Financial Statements.




22

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 1.3%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/22

 

$

2,750

 

$

2,554,310

 

4.75%, 1/01/25

 

 

2,200

 

 

1,802,372

 

 

 

 

 

 




 

 

 

 

 

 

4,356,682

 









Alaska — 0.4%

 

 

 

 

 

 

 

Borough of Matanuska-Susitna Alaska, RB, Goose Creek
Correctional Center (AGC), 6.00%, 9/01/28

 

 

1,200

 

 

1,404,420

 









Arizona — 1.5%

 

 

 

 

 

 

 

State of Arizona, COP, Department of Administration,
Series A (AGM):

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

3,250

 

 

3,402,263

 

5.25%, 10/01/28

 

 

1,000

 

 

1,058,350

 

5.00%, 10/01/29

 

 

400

 

 

413,360

 

 

 

 

 

 




 

 

 

 

 

 

4,873,973

 









California — 21.1%

 

 

 

 

 

 

 

Alameda Corridor Transportation Authority, Refunding RB,
CAB, Subordinate Lien, Series A (AMBAC) (a):

 

 

 

 

 

 

 

5.65%, 10/01/24

 

 

10,185

 

 

8,579,538

 

5.57%, 10/01/25

 

 

6,000

 

 

5,025,720

 

Anaheim Public Financing Authority California, RB,
Senior, Public Improvements Project, Series A (AGM),
6.00%, 9/01/24

 

 

5,000

 

 

5,861,250

 

Antelope Valley Community College District, GO, Election
of 2004, Series B (NPFGC), 5.25%, 8/01/39

 

 

600

 

 

624,150

 

Arcadia Unified School District California, GO, CAB,
Election of 2006, Series A (AGM), 4.96%, 8/01/39 (b)

 

 

1,600

 

 

262,176

 

Cabrillo Community College District California, GO, CAB,
Election of 2004, Series B (NPFGC), 5.18%,
8/01/37 (b)

 

 

2,400

 

 

457,224

 

California Health Facilities Financing Authority, Refunding
RB, St. Joseph Health System, Series A, 5.75%,
7/01/39

 

 

550

 

 

584,661

 

California State University, RB, Systemwide, Series A
(NPFGC), 5.00%, 11/01/35

 

 

1,405

 

 

1,420,146

 

California State University, Refunding RB, Systemwide,
Series A (AGM), 5.00%, 11/01/37

 

 

2,000

 

 

2,055,860

 

Chino Valley Unified School District, GO, Election of 2002,
Series C (NPFGC), 5.25%, 8/01/30

 

 

850

 

 

876,588

 

City of Redding California, COP, Refunding, Series A
(AGM), 5.00%, 6/01/30

 

 

1,420

 

 

1,483,730

 

Fresno Unified School District California, GO, Election of
2001, Series E (AGM), 5.00%, 8/01/30

 

 

900

 

 

935,487

 

Los Angeles Department of Water & Power, RB, Series C
(NPFGC), 5.00%, 7/01/29

 

 

5,160

 

 

5,350,662

 

Metropolitan Water District of Southern California, RB,
Series B-1 (NPFGC):

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

2,965

 

 

3,075,565

 

5.00%, 10/01/36

 

 

1,655

 

 

1,703,392

 

Norco Redevelopment Agency California, Tax Allocation
Bonds, Refunding, Project Area No. 1 (NPFGC), 5.13%,
3/01/30

 

 

5,000

 

 

4,783,850

 

Orange County Sanitation District, COP, Series B (AGM):

 

 

 

 

 

 

 

5.00%, 2/01/30

 

 

1,500

 

 

1,599,300

 

5.00%, 2/01/31

 

 

900

 

 

955,458

 

Poway Redevelopment Agency California, Tax Allocation
Bonds, Refunding, Paguay Redevelopment Project
(AMBAC), 5.13%, 6/15/33

 

 

1,750

 

 

1,629,145

 

Sacramento Unified School District California, GO,
Election of 2002 (NPFGC), 5.00%, 7/01/30

 

 

4,150

 

 

4,285,705

 

San Mateo County Community College District, GO,
CAB, Election of 2001, Series C (NPFGC), 5.54%,
9/01/30 (b)

 

 

12,740

 

 

4,431,864

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 

State of California, GO:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

$

20

 

$

20,296

 

5.13%, 6/01/31

 

 

60

 

 

60,137

 

Stockton Public Financing Authority California, RB,
Parking & Capital Projects (NPFGC), 5.13%, 9/01/30

 

 

6,145

 

 

6,228,879

 

Ventura County Community College District, GO,
Election of 2002, Series B (NPFGC), 5.00%, 8/01/30

 

 

2,325

 

 

2,418,511

 

West Basin Municipal Water District California, COP,
Refunding, Series B (AGC), 5.00%, 8/01/30

 

 

5,035

 

 

5,264,999

 

 

 

 

 

 




 

 

 

 

 

 

69,974,293

 









Colorado — 0.6%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Covenant
Retirement Communities, Series A (Radian):

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

1,200

 

 

1,147,452

 

5.50%, 12/01/33

 

 

675

 

 

631,476

 

Colorado Housing & Finance Authority, Refunding RB,
S/F Program, Senior Series A-2, AMT, 7.50%, 4/01/31

 

 

335

 

 

353,144

 

 

 

 

 

 




 

 

 

 

 

 

2,132,072

 









District of Columbia — 1.7%

 

 

 

 

 

 

 

District of Columbia, RB, Series B-1 (NPFGC), 5.00%,
2/01/31

 

 

5,530

 

 

5,572,747

 









Florida — 12.7%

 

 

 

 

 

 

 

Broward County School Board Florida, COP, Series A
(AGM), 5.25%, 7/01/33

 

 

1,600

 

 

1,664,384

 

City of Tallahassee Florida, RB (NPFGC), 5.00%,
10/01/32

 

 

4,000

 

 

4,139,320

 

Collier County School Board, COP (AGM), 5.00%,
2/15/23

 

 

3,000

 

 

3,202,890

 

County of Broward Florida, RB, Series A, 5.25%,
10/01/34

 

 

850

 

 

910,180

 

County of Duval Florida, COP, Master Lease Program
(AGM), 5.00%, 7/01/33

 

 

3,000

 

 

3,050,850

 

County of Miami-Dade Florida, GO, Building Better
Communities Program, Series B-1, 5.75%, 7/01/33

 

 

1,400

 

 

1,528,506

 

County of Miami-Dade Florida, RB, Water & Sewer
System (AGM), 5.00%, 10/01/39

 

 

4,950

 

 

5,199,975

 

County of Miami-Dade Florida, Refunding RB, Miami
International Airport, AMT (AGC), 5.00%, 10/01/40

 

 

9,900

 

 

9,853,866

 

County of Orange Florida, Refunding RB, Series B
(NPFGC), 5.13%, 1/01/32

 

 

4,200

 

 

4,323,354

 

Hillsborough County Aviation Authority Florida, RB,
Series A, AMT (AGC), 5.38%, 10/01/33

 

 

1,750

 

 

1,793,575

 

Miami-Dade County School Board, COP, Refunding,
Series B (AGC):

 

 

 

 

 

 

 

5.25%, 5/01/31

 

 

100

 

 

105,907

 

5.00%, 5/01/33

 

 

2,000

 

 

2,028,740

 

Orange County School Board, COP, Series A (NPFGC),
5.00%, 8/01/31

 

 

2,000

 

 

2,056,200

 

Sarasota County Public Hospital District, RB, Sarasota
Memorial Hospital Project, Series A, 5.63%, 7/01/39

 

 

275

 

 

289,325

 

South Florida Water Management District, COP (AGC),
5.00%, 10/01/22

 

 

2,000

 

 

2,138,740

 

 

 

 

 

 




 

 

 

 

 

 

42,285,812

 









Georgia — 4.0%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB (AGM), 5.25%,
10/01/39

 

 

2,300

 

 

2,402,488

 

Gwinnett County Hospital Authority, Refunding RB,
Gwinnett Hospital System, Series D (AGM), 5.50%,
7/01/41

 

 

825

 

 

857,794

 

Municipal Electric Authority of Georgia, Refunding RB,
Series EE (AMBAC), 7.00%, 1/01/25

 

 

7,475

 

 

9,969,407

 

 

 

 

 

 




 

 

 

 

 

 

13,229,689

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

23




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Illinois — 21.5%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO, Refunding,
Series A:

 

 

 

 

 

 

 

(AGM), 5.50%, 12/01/31

 

$

3,000

 

$

3,495,750

 

Chicago School Reform Board, (NPFGC), 5.50%,
12/01/26

 

 

1,000

 

 

1,156,590

 

City of Chicago Illinois, ARB, General, Third Lien,
Series B-2, AMT:

 

 

 

 

 

 

 

(AGM), 5.75%, 1/01/23

 

 

5,670

 

 

5,950,438

 

(Syncora), 6.00%, 1/01/29

 

 

2,500

 

 

2,612,525

 

City of Chicago Illinois, RB, Series A (AGC), 5.00%,
1/01/38

 

 

2,000

 

 

2,059,360

 

City of Chicago Illinois, Refunding RB, General Airport,
Third Lien, Series A, AMT (NPFGC), 5.75%, 1/01/21

 

 

9,000

 

 

9,219,690

 

County of Cook Illinois, GO, Capital Improvement,
Series C (AMBAC), 5.50%, 11/15/12 (c)

 

 

2,460

 

 

2,710,133

 

County of Cook Illinois, GO, Refunding, Series A, 5.25%,
11/15/33

 

 

1,350

 

 

1,443,460

 

Illinois Municipal Electric Agency, RB, Series A (NPFGC),
5.25%, 2/01/35

 

 

1,000

 

 

1,036,010

 

Illinois Sports Facilities Authority, RB, State Tax Supported
(AMBAC), 5.50%, 6/15/30

 

 

20,120

 

 

21,313,720

 

Metropolitan Pier & Exposition Authority, RB, CAB,
McCormick Place Expansion Project, Series A
(NPFGC), 5.96%, 12/15/33 (b)

 

 

9,950

 

 

2,529,588

 

Metropolitan Pier & Exposition Authority, Refunding RB,
CAB, McCormick Place Expansion Project, Series B
(AGM) (b):

 

 

 

 

 

 

 

5.82%, 6/15/27

 

 

1,300

 

 

521,456

 

6.25%, 6/15/44

 

 

3,450

 

 

441,255

 

Regional Transportation Authority, RB, Series A (AMBAC),
7.20%, 11/01/20

 

 

10,115

 

 

12,524,393

 

State of Illinois, RB, Build Illinois, Series B, 5.25%,
6/15/34

 

 

4,275

 

 

4,473,916

 

 

 

 

 

 




 

 

 

 

 

 

71,488,284

 









Indiana — 0.7%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB, Series B, 5.75%,
1/01/34

 

 

400

 

 

432,780

 

Indianapolis Local Public Improvement Bond Bank,
Refunding RB, Waterworks Project, Series A (AGC),
5.50%, 1/01/38

 

 

1,825

 

 

2,004,781

 

 

 

 

 

 




 

 

 

 

 

 

2,437,561

 









Iowa — 1.9%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Series A (AGC), 5.63%,
8/15/37

 

 

5,725

 

 

6,248,895

 









Louisiana — 1.2%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority, Refunding RB,
Christus Health, Series B (AGC), 6.50%, 7/01/30

 

 

1,250

 

 

1,431,225

 

Rapides Finance Authority Louisiana, RB, Cleco Power
LLC Project, AMT (AMBAC), 4.70%, 11/01/36 (d)

 

 

900

 

 

817,767

 

State of Louisiana, RB, Series A (NPFGC), 5.00%,
5/01/35

 

 

1,740

 

 

1,788,685

 

 

 

 

 

 




 

 

 

 

 

 

4,037,677

 









Maryland — 0.4%

 

 

 

 

 

 

 

Maryland Community Development Administration,
Refunding RB, Residential, Series A, AMT, 5.75%,
9/01/39

 

 

1,200

 

 

1,268,484

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Massachusetts — 3.1%

 

 

 

 

 

 

 

Massachusetts HFA, RB, AMT (AGM):

 

 

 

 

 

 

 

Rental Mortgage, Series F, 5.25%, 1/01/46

 

$

2,700

 

$

2,719,116

 

S/F Housing, Series 128, 4.80%, 12/01/27 (d)

 

 

1,600

 

 

1,609,168

 

Massachusetts HFA, Refunding RB, Rental Housing,
Series A, AMT (AGM), 5.15%, 7/01/26

 

 

2,870

 

 

2,928,232

 

Massachusetts Water Resources Authority, Refunding
RB, General, Series A (NPFGC), 5.00%, 8/01/34

 

 

2,700

 

 

2,859,921

 

 

 

 

 

 




 

 

 

 

 

 

10,116,437

 









Michigan — 5.0%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Series B:

 

 

 

 

 

 

 

Second Lien, (AGM), 6.25%, 7/01/36

 

 

400

 

 

444,916

 

Second Lien, (AGM), 7.00%, 7/01/36

 

 

200

 

 

234,146

 

Senior Lien, (AGM), 7.50%, 7/01/33

 

 

700

 

 

853,006

 

System, Second Lien, (NPFGC), 5.00%, 7/01/36

 

 

3,600

 

 

3,518,280

 

City of Detroit Michigan, Refunding RB, Second Lien,
Series E (BHAC), 5.75%, 7/01/31

 

 

2,500

 

 

2,704,050

 

Kalamazoo Hospital Finance Authority, RB, Bronson
Methodist Hospital (AGM), 5.25%, 5/15/36

 

 

425

 

 

438,511

 

Michigan Higher Education Student Loan Authority,
Refunding RB, Student Loan, Series XVII-G, AMT
(AMBAC), 5.20%, 9/01/20

 

 

1,500

 

 

1,520,625

 

Michigan Strategic Fund, RB, Detroit Edison Co. Project,
Series C, AMT (Syncora), 5.45%, 12/15/32

 

 

4,300

 

 

4,245,304

 

Michigan Strategic Fund, Refunding RB, AMT (Syncora),
Detroit Edison Co.:

 

 

 

 

 

 

 

Pollution, Series C, 5.65%, 9/01/29

 

 

1,410

 

 

1,414,230

 

Project, Series A, 5.50%, 6/01/30

 

 

1,300

 

 

1,300,299

 

 

 

 

 

 




 

 

 

 

 

 

16,673,367

 









Minnesota — 0.9%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, Refunding RB, Fairview
Health Services, Series B (AGC), 6.50%, 11/15/38

 

 

2,500

 

 

2,848,750

 









Mississippi — 0.9%

 

 

 

 

 

 

 

Mississippi Development Bank Special Obligation,
Refunding RB, Jackson Mississippi Water and Sewer
System (AGM), 5.00%, 9/01/34

 

 

2,800

 

 

2,862,552

 









Nevada — 5.2%

 

 

 

 

 

 

 

City of Carson City Nevada, RB, Carson-Tahoe Hospital
Project, Series A (Radian), 5.50%, 9/01/33

 

 

3,100

 

 

3,052,229

 

City of Las Vegas Nevada, GO, Limited Tax, Performing
Arts Center, 6.00%, 4/01/34

 

 

850

 

 

950,529

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Las Vegas-McCarran International Airport, Series A
(AGC), 5.25%, 7/01/39

 

 

3,800

 

 

3,936,838

 

Southwest Gas Corp. Project, Series A, AMT (FGIC),
4.75%, 9/01/36

 

 

75

 

 

67,285

 

Southwest Gas Corp. Project, Series D, AMT
(NPFGC), 5.25%, 3/01/38

 

 

1,200

 

 

1,182,432

 

Subordinate Lien, Series A-2 (NPFGC), 5.00%,
7/01/30

 

 

1,500

 

 

1,521,990

 

Subordinate Lien, Series A-2 (NPFGC), 5.00%,
7/01/36

 

 

3,200

 

 

3,209,344

 

System, Subordinate Lien, Series C (AGM), 5.00%,
7/01/26

 

 

1,475

 

 

1,556,656

 

Las Vegas Valley Water District, GO, Refunding, Series A
(NPFGC), 5.00%, 6/01/24

 

 

1,600

 

 

1,693,984

 

 

 

 

 

 




 

 

 

 

 

 

17,171,287

 










 

 

 

See Notes to Financial Statements.




24

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey — 9.0%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax (Radian), 5.50%, 6/15/31

 

$

600

 

$

584,940

 

Cigarette Tax (Radian), 5.75%, 6/15/34

 

 

305

 

 

296,911

 

Motor Vehicle Surcharge, Series A (NPFGC), 5.25%,
7/01/31

 

 

9,325

 

 

9,651,188

 

Motor Vehicle Surcharge, Series A (NPFGC), 5.25%,
7/01/33

 

 

7,800

 

 

8,038,056

 

School Facilities Construction, Series O, 5.13%,
3/01/28

 

 

2,250

 

 

2,406,668

 

School Facilities Construction, Series Z (AGC),
6.00%, 12/15/34

 

 

2,000

 

 

2,291,840

 

New Jersey EDA, Refunding RB, School Facilities
Construction, Series N-1:

 

 

 

 

 

 

 

(AGM), 5.50%, 9/01/25

 

 

5,000

 

 

5,814,600

 

(NPFGC), 5.50%, 9/01/28

 

 

815

 

 

929,320

 

 

 

 

 

 




 

 

 

 

 

 

30,013,523

 









New York — 3.3%

 

 

 

 

 

 

 

Erie County Industrial Development Agency, RB, City
School District of Buffalo Project, Series A (AGM),
5.75%, 5/01/28

 

 

1,500

 

 

1,696,710

 

Metropolitan Transportation Authority, RB, Series 2008C,
6.50%, 11/15/28

 

 

4,000

 

 

4,724,200

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-4, 5.50%, 1/15/34

 

 

2,750

 

 

3,072,822

 

New York State Dormitory Authority, ERB, Series B,
5.75%, 3/15/36

 

 

1,200

 

 

1,385,112

 

 

 

 

 

 




 

 

 

 

 

 

10,878,844

 









North Carolina — 0.5%

 

 

 

 

 

 

 

North Carolina Medical Care Commission, RB, Novant
Health Obligation, Series A, 4.75%, 11/01/43 (e)

 

 

1,700

 

 

1,634,295

 









Ohio — 0.3%

 

 

 

 

 

 

 

Ohio Higher Educational Facility Commission,
Refunding RB, Summa Health System, 2010 Project
(AGC), 5.25%, 11/15/40

 

 

1,025

 

 

1,050,728

 









Pennsylvania — 1.2%

 

 

 

 

 

 

 

Pennsylvania HFA, Refunding RB, Series 99A, AMT,
5.25%, 10/01/32

 

 

1,500

 

 

1,536,705

 

Pennsylvania Turnpike Commission, RB, CAB,
Sub-Series E, 6.48%, 12/01/38 (a)

 

 

2,750

 

 

2,057,715

 

Philadelphia School District, GO, Series E, 6.00%,
9/01/38

 

 

400

 

 

436,204

 

 

 

 

 

 




 

 

 

 

 

 

4,030,624

 









Puerto Rico — 1.9%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 6.38%, 8/01/39

 

 

3,200

 

 

3,657,376

 

Puerto Rico Sales Tax Financing Corp., Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.70%, 8/01/41 (b)

 

 

8,500

 

 

1,365,355

 

First Sub-Series C, 6.00%, 8/01/39

 

 

1,180

 

 

1,328,350

 

 

 

 

 

 




 

 

 

 

 

 

6,351,081

 









Rhode Island — 2.1%

 

 

 

 

 

 

 

Providence Public Building Authority Rhode Island, RB,
Series A (AGM), 6.25%, 12/15/10 (c)

 

 

4,345

 

 

4,421,690

 

Rhode Island Health & Educational Building Corp.,
Refunding RB, Public Schools Financing Program,
Series E (AGC), 6.00%, 5/15/29

 

 

2,375

 

 

2,668,336

 

 

 

 

 

 




 

 

 

 

 

 

7,090,026

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Tennessee — 1.8%

 

 

 

 

 

 

 

Knox County Health Educational & Housing Facilities
Board Tennessee, Refunding RB, Covenant Health,
Series A, 5.04%, 1/01/38 (b)

 

$

600

 

$

123,684

 

Metropolitan Government of Nashville & Davidson
County Health & Educational Facilities Board,
Refunding RB, Vanderbilt University, Series B, 5.50%,
10/01/29

 

 

5,000

 

 

5,789,600

 

 

 

 

 

 




 

 

 

 

 

 

5,913,284

 









Texas — 12.8%

 

 

 

 

 

 

 

City of Houston Texas, Refunding RB, Combined,
First Lien, Series A (AGC):

 

 

 

 

 

 

 

6.00%, 11/15/35

 

 

2,100

 

 

2,432,682

 

5.38%, 11/15/38

 

 

1,350

 

 

1,482,179

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., RB, Series A, AMT (NPFGC),
5.50%, 11/01/33

 

 

13,000

 

 

13,171,990

 

Lewisville ISD Texas, GO, Refunding, CAB, School
Building (NPFGC), 4.67%, 8/15/24 (b)

 

 

4,475

 

 

2,396,228

 

Mansfield ISD Texas, GO, School Building (PSF-GTD),
5.00%, 2/15/33

 

 

1,725

 

 

1,840,816

 

Matagorda County Navigation District No. 1 Texas,
Refunding RB, Central Power & Light Co. Project, AMT
(NPFGC), 5.20%, 5/01/30 (d)

 

 

2,400

 

 

2,437,104

 

North Texas Tollway Authority, RB (AGC), System,
First Tier:

 

 

 

 

 

 

 

Series K-1, 5.75%, 1/01/38

 

 

3,800

 

 

4,206,410

 

Series K-2, 6.00%, 1/01/38

 

 

4,015

 

 

4,536,950

 

North Texas Tollway Authority, Refunding RB First Tier:

 

 

 

 

 

 

 

Series A, 6.00%, 1/01/28

 

 

2,795

 

 

3,123,385

 

System, (NPFGC), 5.75%, 1/01/40

 

 

1,600

 

 

1,697,168

 

Texas State Turnpike Authority, RB, First Tier, Series A
(AMBAC), 5.50%, 8/15/39

 

 

5,150

 

 

5,224,520

 

 

 

 

 

 




 

 

 

 

 

 

42,549,432

 









Utah — 1.6%

 

 

 

 

 

 

 

Utah Transit Authority, RB, Series A (AGM), 5.00%,
6/15/36

 

 

5,000

 

 

5,332,450

 









Virginia — 0.6%

 

 

 

 

 

 

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.35%,
7/01/31

 

 

1,955

 

 

1,969,506

 









Washington — 1.4%

 

 

 

 

 

 

 

Washington Health Care Facilities Authority, RB,
Providence Health & Services, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

900

 

 

930,726

 

5.25%, 10/01/39

 

 

625

 

 

658,200

 

Washington Health Care Facilities Authority,
Refunding RB, Providence Health, Series D (AGM),
5.25%, 10/01/33

 

 

2,800

 

 

2,990,820

 

 

 

 

 

 




 

 

 

 

 

 

4,579,746

 









Wisconsin — 1.0%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority,
RB, Ascension Health Senior Credit Group, 5.00%,
11/15/33

 

 

1,375

 

 

1,432,956

 

Wisconsin Housing & EDA, Refunding RB, Series E, AMT,
5.50%, 9/01/38

 

 

1,800

 

 

1,937,268

 

 

 

 

 

 




 

 

 

 

 

 

3,370,224

 









Total Municipal Bonds — 121.6%

 

 

 

 

 

403,746,745

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

25




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

Par
(000)

 

Value

 









Arizona — 0.4%

 

 

 

 

 

 

 

Phoenix Civic Improvement Corp., RB, Junior Lien,
Series A, 5.00%, 7/01/34

 

$

1,200

 

$

1,282,608

 

California — 5.2%

 

 

 

 

 

 

 

Anaheim Public Financing Authority California, RB,
Electric System Distribution Facilities, Series A (AGM),
5.00%, 10/01/31

 

 

959

 

 

966,449

 

Los Angeles Community College District California, GO,
Election of 2001, Series A (AGM), 5.00%, 8/01/32

 

 

2,500

 

 

2,622,425

 

Orange County Sanitation District, COP (NPFGC), 5.00%,
2/01/33

 

 

7,458

 

 

7,625,172

 

San Diego Community College District California, GO,
Election of 2002, 5.25%, 8/01/33

 

 

404

 

 

437,973

 

San Diego County Water Authority, COP, Refunding,
Series 2008-A (AGM), 5.00%, 5/01/33

 

 

2,810

 

 

2,962,695

 

Tamalpais Union High School District California, GO,
Election of 2001 (AGM), 5.00%, 8/01/28

 

 

1,605

 

 

1,688,412

 

University of California, RB, Series O, 5.75%, 5/15/34

 

 

840

 

 

957,886

 

 

 

 

 

 




 

 

 

 

 

 

17,261,012

 









Colorado — 0.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Refunding RB,
Catholic Healthcare, Series A, 5.50%, 7/01/34

 

 

900

 

 

969,088

 









District of Columbia — 1.0%

 

 

 

 

 

 

 

District of Columbia, RB, Series A, 5.50%, 12/01/30

 

 

1,005

 

 

1,151,026

 

District of Columbia Water & Sewer Authority, RB,
Series A, 6.00%, 10/01/35

 

 

1,770

 

 

2,014,992

 

 

 

 

 

 




 

 

 

 

 

 

3,166,018

 









Florida — 5.8%

 

 

 

 

 

 

 

City of Tallahassee Florida, RB (NPFGC), 5.00%,
10/01/37

 

 

7,500

 

 

7,711,650

 

Florida State Board of Education, GO, Series D, 5.00%,
6/01/37

 

 

1,349

 

 

1,414,672

 

Miami-Dade County School Board, COP, Refunding,
Series B (AGC), 5.00%, 5/01/33

 

 

10,000

 

 

10,143,700

 

 

 

 

 

 




 

 

 

 

 

 

19,270,022

 









Georgia — 5.4%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB, General, Series B (AGM),
5.25%, 1/01/33

 

 

17,356

 

 

17,921,700

 

 

 

 

 

 




Illinois — 0.6%

 

 

 

 

 

 

 

Illinois State Toll Highway Authority, RB, Series B, 5.50%,
1/01/33

 

 

1,880

 

 

2,031,973

 









Louisiana — 1.7%

 

 

 

 

 

 

 

State of Louisiana, RB, Series A (AGM), 5.00%, 5/01/36

 

 

5,400

 

 

5,629,230

 









Massachusetts — 3.4%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

10,600

 

 

11,216,981

 









Nevada — 3.4%

 

 

 

 

 

 

 

City of Las Vegas Nevada, GO, Limited Tax, Performing
Arts Center, 6.00%, 4/01/39

 

 

3,778

 

 

4,201,606

 

Clark County Water Reclamation District, GO, Series B:

 

 

 

 

 

 

 

5.50%, 7/01/29

 

 

4,499

 

 

5,030,795

 

5.75%, 7/01/34

 

 

1,829

 

 

2,061,968

 

 

 

 

 

 




 

 

 

 

 

 

11,294,369

 









New Hampshire — 2.3%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
RB, Dartmouth-Hitchcock Obligation (AGM), 5.50%,
8/01/27

 

 

7,390

 

 

7,761,495

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

Par
(000)

 

Value

 









New York — 1.8%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB,
Fiscal 2009, Series A, 5.75%, 6/15/40

 

$

1,260

 

$

1,438,918

 

New York State Thruway Authority, RB, Series G (AGM),
5.00%, 1/01/32

 

 

3,100

 

 

3,233,424

 

Triborough Bridge & Tunnel Authority, RB, General,
Series A-2, 5.25%, 11/15/34

 

 

1,300

 

 

1,420,159

 

 

 

 

 

 




 

 

 

 

 

 

6,092,501

 









Ohio — 0.2%

 

 

 

 

 

 

 

State of Ohio, RB, Cleveland Clinic Health, Series B,
5.50%, 1/01/34

 

 

580

 

 

628,326

 









South Carolina — 2.7%

 

 

 

 

 

 

 

Charleston Educational Excellence Finance Corp., RB,
Charleston County School (AGC):

 

 

 

 

 

 

 

5.25%, 12/01/28

 

 

3,120

 

 

3,363,079

 

5.25%, 12/01/29

 

 

2,765

 

 

2,955,149

 

5.25%, 12/01/30

 

 

1,010

 

 

1,073,519

 

South Carolina State Public Service Authority, RB,
Santee Cooper, Series A, 5.50%, 1/01/38

 

 

1,275

 

 

1,415,569

 

 

 

 

 

 




 

 

 

 

 

 

8,807,316

 









Texas — 0.7%

 

 

 

 

 

 

 

Clear Creek ISD Texas, GO, Refunding, School Building
(PSF-GTD), 5.00%, 2/15/33

 

 

2,200

 

 

2,421,562

 









Virginia — 0.1%

 

 

 

 

 

 

 

Fairfax County IDA Virginia, Refunding RB, Health Care,
Inova Health System, Series A, 5.50%, 5/15/35

 

 

350

 

 

380,818

 









Washington — 1.3%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit Authority, RB,
Series A (AGM), 5.00%, 11/01/32

 

 

4,004

 

 

4,224,228

 









Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority,
Refunding RB, Froedtert & Community Health Inc.,
5.25%, 4/01/39

 

 

1,430

 

 

1,504,115

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 36.7%

 

 

 

 

 

121,863,362

 









Total Long-Term Investments
(Cost — $505,115,498) — 158.3%

 

 

 

 

 

525,610,107

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.13% (g)(h)

 

 

6,417,821

 

 

6,417,821

 









Total Short-Term Securities
(Cost — $6,417,821) — 2.0%

 

 

 

 

 

6,417,821

 









Total Investments (Cost — $511,533,319*) — 160.3%

 

 

 

 

 

532,027,928

 

 

 

 

 

 

 

 

 

Other Assets Less Liabilities — 1.3%

 

 

 

 

 

4,159,303

 

 

 

 

 

 

 

 

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (18.6)%

 

 

 

 

 

(61,643,192

)

 

 

 

 

 

 

 

 

Preferred Shares, at Redemption Value — (43.0)%

 

 

 

 

 

(142,601,192

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

331,942,847

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.




26

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniEnhanced Fund, Inc. (MEN)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

450,680,035

 

 

 




Gross unrealized appreciation

 

$

23,575,034

 

Gross unrealized depreciation

 

 

(3,810,048

)

 

 




Net unrealized appreciation

 

$

19,764,986

 

 

 





 

 

(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 reflects the current yield as of report date.

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

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.

 

 

(d)

Variable rate security. Rate shown is as of report date.

 

 

(e)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 




Counterparty

Unrealized
Value

Appreciation




JPMorgan Chase & Co.

$1,634,295

$2,652





 

 

(f)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(g)

Investments in companies considered to be an affiliate of the Fund during the period, 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,
2010

Net
Activity

Shares
Held at
October 31,
2010

Income






FFI Institutional Tax-Exempt Fund

7,207,423

(789,602)

6,417,821

$5,978







 

 

 

(h)

Represents the current yield as of report date.

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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 Fund’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of October 31, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

525,610,107

 

 

 

$

525,610,107

 

Short-Term Securities

 

$

6,417,821

 

 

 

 

 

 

6,417,821

 

 

 













Total

 

$

6,417,821

 

$

525,610,107

 

 

 

$

532,027,928

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

27




 

 


 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 1.7%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series A, 5.00%, 1/01/24

 

$

4,550

 

$

3,970,011

 









Arizona — 5.0%

 

 

 

 

 

 

 

Maricopa County IDA Arizona, RB, Arizona Charter
Schools Project, Series A, 6.75%, 7/01/29

 

 

2,200

 

 

1,528,758

 

Maricopa County Pollution Control Corp., Refunding RB,
Southern California Edison Co., Series A, 5.00%,
6/01/35

 

 

1,185

 

 

1,211,224

 

Phoenix IDA Arizona, Refunding RB, America West
Airlines Inc. Project, AMT, 6.30%, 4/01/23

 

 

2,215

 

 

1,945,523

 

Pima County IDA, Refunding IDRB, Tucson Electric Power,
5.75%, 9/01/29

 

 

770

 

 

795,703

 

Salt River Project Agricultural Improvement & Power
District, RB, Series A, 5.00%, 1/01/38

 

 

1,370

 

 

1,444,994

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

2,000

 

 

1,932,440

 

5.00%, 12/01/37

 

 

2,360

 

 

2,219,957

 

Show Low Improvement District, Special Assessment
Bonds, District No. 5, 6.38%, 1/01/15

 

 

305

 

 

305,427

 

 

 

 

 

 




 

 

 

 

 

 

11,384,026

 









California — 14.8%

 

 

 

 

 

 

 

Agua Caliente Band of Cahuilla Indians, RB, 5.60%,
7/01/13 (a)

 

 

255

 

 

252,399

 

California Health Facilities Financing Authority,

 

 

 

 

 

 

 

Refunding RB, St. Joseph Health System, Series A,
5.75%, 7/01/39

 

 

1,530

 

 

1,626,421

 

California State Public Works Board, RB, Various Capital
Projects, Sub-Series I-1, 6.38%, 11/01/34

 

 

820

 

 

898,777

 

California Statewide Communities Development
Authority, RB:

 

 

 

 

 

 

 

Health Facility, Memorial Health Services, Series A,
6.00%, 10/01/23

 

 

3,870

 

 

4,081,650

 

John Muir Health, 5.13%, 7/01/39

 

 

1,510

 

 

1,516,720

 

Los Angeles Department of Airports, RB, Series A,
5.25%, 5/15/39

 

 

555

 

 

585,292

 

Los Angeles Department of Airports, Refunding RB,
Senior, Los Angeles International Airport, Series A,
5.00%, 5/15/40

 

 

4,115

 

 

4,266,679

 

Montebello Unified School District California, GO, CAB
(NPFGC) (b):

 

 

 

 

 

 

 

5.63%, 8/01/22

 

 

2,405

 

 

1,258,031

 

5.62%, 8/01/23

 

 

2,455

 

 

1,202,115

 

San Diego Unified School District California, GO, CAB,
Election of 2008, Series A, 6.06%, 7/01/29 (b)

 

 

3,475

 

 

1,188,346

 

San Francisco City & County Public Utilities Commission,
RB, Series B, 5.00%, 11/01/39

 

 

6,600

 

 

6,992,502

 

State of California, GO, Various Purpose, 6.50%, 4/01/33

 

 

8,370

 

 

9,840,358

 

 

 

 

 

 




 

 

 

 

 

 

33,709,290

 









Colorado — 3.4%

 

 

 

 

 

 

 

Colorado Educational & Cultural Facilities Authority, RB,
Charter School, Colorado Springs, 5.50%, 7/01/40

 

 

1,455

 

 

1,478,891

 

Colorado Health Facilities Authority, Refunding RB,
Sisters of Leavenworth, Series A, 5.00%, 1/01/40

 

 

1,525

 

 

1,554,112

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee, Series A, 7.35%, 9/01/31

 

 

2,645

 

 

2,533,196

 

Plaza Metropolitan District No. 1 Colorado, Tax Allocation
Bonds, Subordinate Public Improvement Fee, Tax
Increment, 8.13%, 12/01/25

 

 

1,000

 

 

929,880

 

University of Colorado, RB, Series A, 5.38%, 6/01/38

 

 

1,250

 

 

1,360,575

 

 

 

 

 

 




 

 

 

 

 

 

7,856,654

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Connecticut — 2.8%

 

 

 

 

 

 

 

Connecticut State Development Authority, RB, AFCO
Cargo BDL LLC Project, AMT, 8.00%, 4/01/30

 

$

2,735

 

$

2,657,517

 

Connecticut State Health & Educational Facility
Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit, 5.00%, 11/15/40

 

 

955

 

 

1,000,257

 

Wesleyan University, 5.00%, 7/01/35

 

 

2,515

 

 

2,719,143

 

 

 

 

 

 




 

 

 

 

 

 

6,376,917

 









Delaware — 1.2%

 

 

 

 

 

 

 

Delaware State EDA, RB, Exempt Facilities, Indian River
Power, 5.38%, 10/01/45

 

 

2,830

 

 

2,818,793

 









District of Columbia — 2.2%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, RB:

 

 

 

 

 

 

 

CAB, 2nd Senior Lien, Series B (AGC), 7.10%,
10/01/35 (b)

 

 

13,485

 

 

2,987,332

 

First Senior Lien, Series A, 5.00%, 10/01/39

 

 

505

 

 

525,367

 

First Senior Lien, Series A, 5.25%, 10/01/44

 

 

1,470

 

 

1,551,335

 

 

 

 

 

 




 

 

 

 

 

 

5,064,034

 









Florida — 7.6%

 

 

 

 

 

 

 

City of Clearwater Florida, RB, Series A, 5.25%,
12/01/39

 

 

1,195

 

 

1,271,384

 

County of Broward Florida, RB, Series A, 5.25%,
10/01/34

 

 

750

 

 

803,100

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.24%, 10/01/37 (b)

 

 

2,340

 

 

394,618

 

Water & Sewer System, 5.00%, 10/01/34

 

3,935

 

 

4,097,319

 

County of Miami-Dade Florida, Refunding RB, Miami
International Airport, Series A-1, 5.38%, 10/01/41

 

 

2,620

 

 

2,704,285

 

Greater Orlando Aviation Authority Florida, RB, Special
Purpose, JetBlue Airways Corp., AMT, 6.50%,
11/15/36

 

 

2,095

 

 

2,038,582

 

Hillsborough County IDA, RB, National Gypsum Co.,
Series B, AMT, 7.13%, 4/01/30

 

 

1,900

 

 

1,852,158

 

Midtown Miami Community Development District,
Special Assessment Bonds, Series B, 6.50%,
5/01/37

 

 

2,450

 

 

2,459,089

 

Palm Coast Park Community Development District,
Special Assessment Bonds, 5.70%, 5/01/37

 

 

675

 

 

421,423

 

Preserve at Wilderness Lake Community Development
District, Special Assessment Bonds, Series A, 5.90%,
5/01/34

 

 

1,535

 

 

1,369,097

 

 

 

 

 

 




 

 

 

 

 

 

17,411,055

 









Georgia — 1.4%

 

 

 

 

 

 

 

De Kalb Private Hospital Authority, Refunding RB,
Children’s Healthcare, 5.25%, 11/15/39

 

 

585

 

 

615,514

 

Metropolitan Atlanta Rapid Transit Authority, RB,
Third Series, 5.00%, 7/01/39

 

 

2,410

 

 

2,585,014

 

 

 

 

 

 




 

 

 

 

 

 

3,200,528

 









Guam — 0.7%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

440

 

 

470,369

 

6.75%, 11/15/29

 

 

630

 

 

697,813

 

7.00%, 11/15/39

 

 

430

 

 

481,776

 

 

 

 

 

 




 

 

 

 

 

 

1,649,958

 










 

 

 

See Notes to Financial Statements.


28

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Illinois — 5.3%

 

 

 

 

 

 

 

City of Chicago Illinois, Special Assessment Bonds,
Lake Shore East, 6.75%, 12/01/32

 

$

1,200

 

$

1,178,304

 

Illinois Finance Authority, RB, Navistar International,
Recovery Zone, 6.50%, 10/15/40

 

 

1,070

 

 

1,110,136

 

Illinois Finance Authority, Refunding RB, Central DuPage
Health, Series B, 5.50%, 11/01/39

 

 

1,115

 

 

1,184,085

 

Illinois HDA, RB, Homeowner Mortgage, Sub-Series C2,
AMT, 5.35%, 2/01/27

 

 

2,730

 

 

2,764,398

 

Metropolitan Pier & Exposition Authority, Refunding RB,
McCormick Place Expansion Project (AGM):

 

 

 

 

 

 

 

CAB, Series B, 6.25%, 6/15/47 (b)

 

 

13,220

 

 

1,392,462

 

Series B, 5.00%, 6/15/50

 

 

2,190

 

 

2,186,124

 

Series B-2, 5.00%, 6/15/50

 

 

1,740

 

 

1,713,326

 

State of Illinois, RB, Build Illinois, Series B, 5.25%,
6/15/34

 

 

440

 

 

460,473

 

 

 

 

 

 




 

 

 

 

 

 

11,989,308

 









Indiana — 1.7%

 

 

 

 

 

 

 

Indiana Finance Authority, RB, Sisters of St. Francis
Health, 5.25%, 11/01/39

 

 

585

 

 

609,272

 

Indiana Finance Authority, Refunding RB, Parkview
Health System, Series A, 5.75%, 5/01/31

 

 

2,300

 

 

2,424,844

 

Indiana Municipal Power Agency, RB, Series B, 6.00%,
1/01/39

 

 

775

 

 

852,035

 

 

 

 

 

 




 

 

 

 

 

 

3,886,151

 









Kansas — 1.7%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Adventist Health, 5.75%, 11/15/38

 

 

2,465

 

 

2,724,589

 

Sisters of Leavenworth, Series A, 5.00%, 1/01/40

 

 

1,155

 

 

1,187,444

 

 

 

 

 

 




 

 

 

 

 

 

3,912,033

 









Kentucky — 0.6%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

 

700

 

 

741,916

 

Louisville & Jefferson County Metropolitan Sewer District
Kentucky, RB, Series A (NPFGC), 5.50%, 5/15/34

 

 

700

 

 

733,390

 

 

 

 

 

 




 

 

 

 

 

 

1,475,306

 









Louisiana — 2.1%

 

 

 

 

 

 

 

East Baton Rouge Sewerage Commission, RB, Series A,
5.25%, 2/01/39

 

 

570

 

 

608,891

 

Louisiana Local Government Environmental Facilities &
Community Development Authority, RB, Westlake
Chemical Corp. Projects, 6.75%, 11/01/32

 

 

3,500

 

 

3,713,360

 

New Orleans Aviation Board, Refunding RB, Passenger
Facility Charge, Series A, 5.25%, 1/01/41

 

 

430

 

 

435,590

 

 

 

 

 

 




 

 

 

 

 

 

4,757,841

 









Maine — 0.1%

 

 

 

 

 

 

 

Maine Health & Higher Educational Facilities Authority,
RB, Series A, 5.00%, 7/01/39

 

 

210

 

 

218,299

 









Maryland — 1.3%

 

 

 

 

 

 

 

Maryland EDC, RB, Transportation Facilities Project,
Series A, 5.75%, 6/01/35

 

 

300

 

 

312,549

 

Maryland EDC, Refunding RB, CNX Marine
Terminals, Inc., 5.75%, 9/01/25

 

 

580

 

 

592,180

 

Maryland State Energy Financing Administration, RB,
Cogeneration, AES Warrior Run, AMT, 7.40%, 9/01/19

 

 

1,970

 

 

1,971,044

 

 

 

 

 

 




 

 

 

 

 

 

2,875,773

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Massachusetts — 2.4%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency,
Refunding RB, Boston University, Series P,
5.45%, 5/15/59

 

$

1,165

 

$

1,260,390

 

Massachusetts HFA, RB, M/F Housing, Series A, AMT,
5.25%, 12/01/48

 

 

2,900

 

 

2,867,317

 

Massachusetts Health & Educational Facilities Authority,
Refunding RB, Partners Healthcare, Series J1, 5.00%,
7/01/39

 

 

1,255

 

 

1,290,492

 

 

 

 

 

 




 

 

 

 

 

 

5,418,199

 









Michigan — 3.6%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Senior Lien, Series B
(AGM), 7.50%, 7/01/33

 

 

635

 

 

773,798

 

Flint Hospital Building Authority Michigan, Refunding RB,
Hurley Medical Center (ACA), 6.00%, 7/01/20

 

 

1,245

 

 

1,242,161

 

Kalamazoo Hospital Finance Authority, Refunding RB,
Bronson Methodist Hospital, 5.50%, 5/15/36

 

 

955

 

 

978,484

 

Michigan State Hospital Finance Authority, Refunding RB,
Hospital, Henry Ford Health, 5.75%, 11/15/39

 

 

2,105

 

 

2,176,886

 

Michigan Strategic Fund, Refunding RB, Detroit
Edison Co., Pollution, Series B, AMT, 5.65%, 9/01/29

 

 

3,000

 

 

3,010,950

 

 

 

 

 

 




 

 

 

 

 

 

8,182,279

 









Minnesota — 1.1%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, Refunding RB, Fairview
Health Services, Series A, 6.75%, 11/15/32

 

 

2,135

 

 

2,434,519

 









Mississippi — 0.7%

 

 

 

 

 

 

 

Mississippi Development Bank Special Obligation,
Refunding RB, Gulfport Water & Sewer System
Project (AGM):

 

 

 

 

 

 

 

5.25%, 7/01/17

 

 

395

 

 

448,700

 

5.25%, 7/01/19

 

 

485

 

 

538,413

 

University of Southern Mississippi, RB, Campus
Facilities Improvements Project, 5.38%, 9/01/36

 

 

675

 

 

732,504

 

 

 

 

 

 




 

 

 

 

 

 

1,719,617

 









Montana — 0.7%

 

 

 

 

 

 

 

Montana Facility Finance Authority, Refunding RB,
Sisters of Leavenworth, Series A, 4.75%, 1/01/40

 

 

1,575

 

 

1,629,369

 









New Hampshire — 1.4%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
Refunding RB, Dartmouth-Hitchcock, 6.00%,
8/01/38

 

 

3,035

 

 

3,270,121

 









New Jersey — 6.4%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

 

5,385

 

 

5,299,971

 

Continental Airlines Inc. Project, AMT, 6.63%,
9/15/12

 

 

1,000

 

 

1,013,510

 

Continental Airlines Inc. Project, AMT, 6.25%,
9/15/29

 

 

2,950

 

 

2,890,882

 

New Jersey State Turnpike Authority, RB, Series C (AGM),
5.00%, 1/01/30

 

 

3,500

 

 

3,678,395

 

Tobacco Settlement Financing Corp. New Jersey,
Refunding RB, Series 1A, 4.50%, 6/01/23

 

 

1,770

 

 

1,656,507

 

 

 

 

 

 




 

 

 

 

 

 

14,539,265

 










 

 

 

See Notes to Financial Statements.

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2010

29




 

 


 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York — 3.5%

 

 

 

 

 

 

 

City of Troy New York, Refunding RB, Rensselaer
Polytechnic, Series A, 5.13%, 9/01/40

 

$

950

 

$

982,965

 

Dutchess County Industrial Development Agency
New York, Refunding RB, St. Francis Hospital, Series A,
7.50%, 3/01/29

 

 

1,100

 

 

1,105,379

 

Long Island Power Authority, Refunding RB, Series A,
5.75%, 4/01/39

 

 

1,450

 

 

1,608,862

 

Metropolitan Transportation Authority, Refunding RB,
Series B, 5.00%, 11/15/34

 

 

1,740

 

 

1,851,899

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

Continental Airlines Inc. Project, AMT, 8.00%,
11/01/12

 

 

300

 

 

304,962

 

Continental Airlines Inc. Project, Mandatory Put
Bonds, AMT, 8.38%, 11/01/16

 

 

725

 

 

735,266

 

Series C, 6.80%, 6/01/28

 

 

535

 

 

561,825

 

New York Liberty Development Corp., Refunding RB,
Second Priority, Bank of America Tower at One Bryant
Park Project, 6.38%, 7/15/49

 

 

850

 

 

910,716

 

 

 

 

 

 




 

 

 

 

 

 

8,061,874

 









North Carolina — 2.1%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency, RB,
Duke Energy Carolinas, Series B, 4.38%, 10/01/31

 

 

1,120

 

 

1,098,138

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Duke Energy Carolinas, Series A,
4.63%, 11/01/40

 

 

1,875

 

 

1,824,562

 

North Carolina Medical Care Commission, RB, Duke
University Health System, Series A, 5.00%, 6/01/42

 

 

970

 

 

1,009,809

 

North Carolina Municipal Power Agency No. 1 Catawba,
Refunding RB, Series A, 5.00%, 1/01/30

 

 

740

 

 

778,458

 

 

 

 

 

 




 

 

 

 

 

 

4,710,967

 









Ohio — 0.8%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB,
Asset-Backed, Senior Series A-2, 6.50%, 6/01/47

 

 

2,160

 

 

1,806,106

 









Pennsylvania — 8.3%

 

 

 

 

 

 

 

Allegheny County Hospital Development Authority,
Refunding RB, Health System, West Penn, Series A,
5.38%, 11/15/40

 

 

1,510

 

 

1,162,398

 

Bucks County IDA, RB, Ann’s Choice Inc. Facility,
Series A, 6.25%, 1/01/35

 

 

1,700

 

 

1,670,913

 

Montgomery County Higher Education & Health
Authority, Refunding RB, Abington Memorial Hospital,
Series A, 5.13%, 6/01/33

 

 

795

 

 

806,822

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

American Water Co. Project, 6.20%, 4/01/39

 

 

2,520

 

 

2,772,932

 

Aqua Pennsylvania Inc. Project, 5.00%, 11/15/40

 

 

1,315

 

 

1,355,489

 

National Gypsum Co., Series B, AMT, 6.13%,
11/01/27

 

 

3,500

 

 

3,081,400

 

Pennsylvania Turnpike Commission, RB, Sub-Series B,
5.25%, 6/01/39

 

 

4,775

 

 

4,964,090

 

Philadelphia Authority for Industrial Development, RB:

 

 

 

 

 

 

 

Arbor House Inc. Project, Series E, 6.10%, 7/01/33

 

 

1,105

 

 

1,103,541

 

Commercial Development, AMT, 7.75%, 12/01/17

 

 

725

 

 

725,928

 

Saligman House Project, Series C (HUD), 6.10%,
7/01/33

 

 

1,245

 

 

1,243,357

 

 

 

 

 

 




 

 

 

 

 

 

18,886,870

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Puerto Rico — 3.7%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Public
Improvement, Series C, 6.00%, 7/01/39

 

$

2,070

 

$

2,275,178

 

Puerto Rico Industrial Medical & Environmental
Pollution Control Facilities Financing Authority, RB,
Special Facilities, American Airlines, Series A,
6.45%, 12/01/25

 

 

1,205

 

 

1,132,760

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 6.50%, 8/01/44

 

 

3,860

 

 

4,443,401

 

Puerto Rico Sales Tax Financing Corp., Refunding RB,
CAB, First Sub-Series C, 6.52%, 8/01/38 (b)

 

 

2,975

 

 

531,871

 

 

 

 

 

 




 

 

 

 

 

 

8,383,210

 









Tennessee — 2.8%

 

 

 

 

 

 

 

Educational Funding of the South Inc., RB, Senior,
Sub-Series B, AMT, 6.20%, 12/01/21

 

 

2,685

 

 

2,688,329

 

Hardeman County Correctional Facilities Corp.
Tennessee, RB, 7.75%, 8/01/17

 

 

3,025

 

 

3,011,146

 

Rutherford County Health & Educational Facilities
Board, RB, Ascension Health Senior Credit Group,
5.00%, 11/15/40

 

 

710

 

 

746,899

 

 

 

 

 

 




 

 

 

 

 

 

6,446,374

 









Texas — 12.5%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, TXU Electric Co.
Project, Series C, Mandatory Put Bonds, AMT,
5.75%, 5/01/36 (c)

 

 

2,570

 

 

2,441,500

 

Brazos River Harbor Navigation District, Refunding RB,
Dow Chemical Co. Project, Series A7, AMT, 6.63%,
5/15/33

 

 

3,655

 

 

3,751,309

 

City of Dallas Texas, Refunding RB, 5.00%, 10/01/35

 

 

1,050

 

 

1,129,916

 

City of Houston Texas, RB, Senior Lien, Series A, 5.50%,
7/01/39

 

 

1,070

 

 

1,156,360

 

Harris County Health Facilities Development Corp.,
Refunding RB, Memorial Hermann Healthcare System,
Series B, 7.25%, 12/01/35

 

 

1,910

 

 

2,192,928

 

La Vernia Higher Education Finance Corp., RB, KIPP Inc.,
6.38%, 8/15/44

 

 

820

 

 

866,781

 

Matagorda County Hospital District Texas, RB (FHA),
5.00%, 2/15/35

 

 

3,750

 

 

3,788,288

 

North Texas Tollway Authority, RB, Toll, 2nd Tier, Series F,
6.13%, 1/01/31

 

 

4,190

 

 

4,520,800

 

San Antonio Energy Acquisition Public Facility Corp.,
RB, Gas Supply:

 

 

 

 

 

 

 

5.50%, 8/01/24

 

 

1,100

 

 

1,189,485

 

5.50%, 8/01/25

 

 

1,120

 

 

1,208,290

 

Texas Department of Housing & Community Affairs, RB,
Series A, AMT (Ginnie Mae), 5.70%, 1/01/33

 

 

35

 

 

35,073

 

Texas Private Activity Bond Surface Transportation Corp.,
RB, Senior Lien:

 

 

 

 

 

 

 

LBJ Infrastructure Group LLC, LBJ Freeway Managed
Lanes Project, 7.00%, 6/30/40

 

 

2,990

 

 

3,250,070

 

NTE Mobility Partners LLC, North Tarrant Express
Managed Lanes Project, 6.88%, 12/31/39

 

 

2,695

 

 

2,924,452

 

 

 

 

 

 




 

 

 

 

 

 

28,455,252

 









Utah — 1.1%

 

 

 

 

 

 

 

City of Riverton Utah, RB, IHC Health Services Inc.,
5.00%, 8/15/41

 

 

2,525

 

 

2,624,990

 









U.S. Virgin Islands — 1.5%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21

 

 

3,460

 

 

3,520,031

 









Vermont — 1.1%

 

 

 

 

 

 

 

Vermont Educational & Health Buildings Financing
Agency, RB, Developmental & Mental Health, Series A,
6.00%, 6/15/17

 

 

2,370

 

 

2,410,835

 










 

 

 

See Notes to Financial Statements.


30

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Virginia — 2.1%

 

 

 

 

 

 

 

Tobacco Settlement Financing Corp. Virginia,
Refunding RB, Senior Series B1, 5.00%, 6/01/47

 

$

3,990

 

$

2,801,219

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.35%,
7/01/31

 

 

2,025

 

 

2,040,026

 

 

 

 

 

 




 

 

 

 

 

 

4,841,245

 









Washington — 0.6%

 

 

 

 

 

 

 

Seattle Housing Authority Washington, HRB,
Replacement Housing Projects, 6.13%, 12/01/32

 

 

1,305

 

 

1,270,287

 









Wisconsin — 4.4%

 

 

 

 

 

 

 

State of Wisconsin, Refunding RB, Series A, 6.00%,
5/01/36

 

 

4,980

 

 

5,665,198

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit Group, 5.00%,
11/15/33

 

 

1,710

 

 

1,782,077

 

New Castle Place Project, Series A, 7.00%,
12/01/31

 

 

825

 

 

826,510

 

SynergyHealth Inc., 6.00%, 11/15/32

 

 

1,755

 

 

1,816,845

 

 

 

 

 

 




 

 

 

 

 

 

10,090,630

 









Wyoming — 0.1%

 

 

 

 

 

 

 

Wyoming Municipal Power Agency, RB, Series A,
5.00%, 1/01/42

 

 

210

 

 

213,081

 









Total Municipal Bonds — 114.5%

 

 

 

 

 

261,471,098

 










 

 

 

 

 

 

 

 


 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

 

 

 

 

 

 









California — 4.7%

 

 

 

 

 

 

 

Bay Area Toll Authority, Refunding RB, San Francisco
Bay Area, Series F-1, 5.63%, 4/01/44

 

 

2,270

 

 

2,519,900

 

California Educational Facilities Authority, RB, University
of Southern California, Series A, 5.25%, 10/01/39

 

 

1,845

 

 

1,997,600

 

Los Angeles Community College District California, GO,
Election of 2001, Series A (AGM), 5.00%, 8/01/32

 

 

1,620

 

 

1,699,331

 

San Diego Community College District California, GO,
Election of 2002, 5.25%, 8/01/33

 

 

748

 

 

811,061

 

Sequoia Union High School District California, GO,
Refunding, Election of 2004, Series B (AGM),
5.50%, 7/01/35

 

 

3,494

 

 

3,699,633

 

 

 

 

 

 




 

 

 

 

 

 

10,727,525

 









Colorado — 2.6%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB (AGM),
Catholic Health:

 

 

 

 

 

 

 

Series C-3, 5.10%, 10/01/41

 

 

2,580

 

 

2,652,808

 

Series C-7, 5.00%, 9/01/36

 

 

1,650

 

 

1,695,705

 

Colorado Health Facilities Authority, Refunding RB,
Catholic Healthcare, Series A, 5.50%, 7/01/34

 

 

1,490

 

 

1,604,379

 

 

 

 

 

 




 

 

 

 

 

 

5,952,892

 









Connecticut — 3.0%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB, Yale University:

 

 

 

 

 

 

 

Series T-1, 4.70%, 7/01/29

 

 

3,180

 

 

3,414,175

 

Series X-3, 4.85%, 7/01/37

 

 

3,270

 

 

3,450,799

 

 

 

 

 

 




 

 

 

 

 

 

6,864,974

 









Georgia — 1.1%

 

 

 

 

 

 

 

Private Colleges & Universities Authority, Refunding RB,
Emory University, Series C, 5.00%, 9/01/38

 

 

2,259

 

 

2,397,420

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par
(000)

 

Value

 









Massachusetts — 2.3%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

$

4,994

 

$

5,284,901

 









New Hampshire — 0.7%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
Refunding RB, Dartmouth College, 5.25%, 6/01/39

 

 

1,409

 

 

1,549,195

 









New York — 4.4%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB,
Series FF-2, 5.50%, 6/15/40

 

 

1,110

 

 

1,252,571

 

New York State Dormitory Authority, ERB, Series F,
5.00%, 3/15/35

 

 

4,035

 

 

4,214,809

 

Sales Tax Asset Receivable Corp., RB, Series A (AMBAC),
5.25%, 10/15/27

 

 

4,240

 

 

4,682,364

 

 

 

 

 

 




 

 

 

 

 

 

10,149,744

 









North Carolina — 0.5%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Wake Forest University, 5.00%,
1/01/38

 

 

1,080

 

 

1,143,018

 









Ohio — 4.6%

 

 

 

 

 

 

 

State of Ohio, Refunding RB, Cleveland Clinic Health,
Series A, 5.50%, 1/01/39

 

 

9,650

 

 

10,391,989

 









Tennessee — 1.0%

 

 

 

 

 

 

 

Shelby County Health Educational & Housing Facilities
Board, Refunding RB, St. Jude’s Children’s Research
Hospital, 5.00%, 7/01/31

 

 

2,250

 

 

2,353,748

 









Texas — 2.1%

 

 

 

 

 

 

 

County of Harris Texas, RB, Senior Lien, Toll Road,
Series A, 5.00%, 8/15/38

 

 

4,620

 

 

4,851,000

 









Virginia — 7.6%

 

 

 

 

 

 

 

University of Virginia, Refunding RB, General, 5.00%,
6/01/40

 

 

3,750

 

 

4,021,125

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.38%,
7/01/36

 

 

10,940

 

 

11,144,140

 

Virginia Small Business Financing Authority, Refunding
RB, Sentara Healthcare, 5.00%, 11/01/40

 

 

2,094

 

 

2,206,166

 

 

 

 

 

 




 

 

 

 

 

 

17,371,431

 









Washington — 0.9%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit Authority, RB,
Series A (AGM), 5.00%, 11/01/32

 

 

1,860

 

 

1,961,814

 









Wisconsin — 1.8%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority,
Refunding RB, Froedtert & Community Health Inc.,
5.25%, 4/01/39

 

 

3,959

 

 

4,165,241

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 37.3%

 

 

 

 

 

85,164,892

 









Total Long-Term Investments
(Cost — $332,204,086) — 151.8%

 

 

 

 

 

346,635,990

 










 

 

 

 

 

 

 

 


 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.13% (e)(f)

 

 

967,139

 

 

967,139

 









Total Short-Term Securities
(Cost — $967,139) — 0.4%

 

 

 

 

 

967,139

 









Total Investments (Cost — $333,171,225*) — 152.2%

 

 

 

 

 

347,603,129

 

Other Assets Less Liabilities — 3.5%

 

 

 

 

 

7,939,169

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (19.0)%

 

 

 

 

 

(43,519,724

)

Preferred Shares, at Redemption Value — (36.7)%

 

 

 

 

 

(83,705,999

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

228,316,575

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

33




 

 


 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund, Inc. (MHD)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

288,799,108

 

 

 




Gross unrealized appreciation

 

$

18,117,701

 

Gross unrealized depreciation

 

 

(2,801,302

)

 

 




Net unrealized appreciation

 

$

15,316,399

 

 

 





 

 

(a)

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

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. (c) Variable rate security. Rate shown is as of report date.

 

 

(d)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(e)

Represents the current yield as of report date.

 

 

(f)

Investments in companies considered to be an affiliate of the Fund during the period, 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,
2010

 

Net
Activity

 

Shares
Held at
October 31,
2010

 

Income

 











FFI Institutional Tax-Exempt Fund

 

3,354,654

 

(2,387,515

)

967,139

 

$

2,341

 













 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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 Fund’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of October 31, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

346,635,990

 

 

 

$

346,635,990

 

Short-Term Securities

 

$

967,139

 

 

 

 

 

 

967,139

 

 

 













Total

 

$

967,139

 

$

346,635,990

 

 

 

$

347,603,129

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

See Notes to Financial Statements.


32

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock MuniHoldings Fund II, Inc. (MUH)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 1.8%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series A, 5.00%,
1/01/24

 

$

3,450

 

$

3,010,229

 









Arizona — 4.2%

 

 

 

 

 

 

 

Maricopa County Pollution Control Corp., Refunding RB,
Southern California Edison Co., Series A, 5.00%,
6/01/35

 

 

855

 

 

873,921

 

Phoenix IDA Arizona, Refunding RB, America West
Airlines Inc. Project, AMT, 6.30%, 4/01/23

 

 

2,060

 

 

1,809,380

 

Pima County IDA, RB, Arizona Charter Schools Project,
Series C, 6.75%, 7/01/31

 

 

950

 

 

953,496

 

Pima County IDA, Refunding IDRB, Tucson Electric Power,
5.75%, 9/01/29

 

 

560

 

 

578,693

 

Salt River Project Agricultural Improvement & Power
District, RB, Series A, 5.00%, 1/01/38

 

 

990

 

 

1,044,193

 

Salt Verde Financial Corp., RB, Senior, 5.00%,
12/01/37

 

 

1,385

 

 

1,302,814

 

Show Low Improvement District, Special Assessment
Bonds, District No. 5, 6.38%, 1/01/15

 

 

605

 

 

605,847

 

 

 

 

 

 




 

 

 

 

 

 

7,168,344

 









California — 19.5%

 

 

 

 

 

 

 

Benicia Unified School District, GO, CAB, Series A
(NPFGC), 5.62%, 8/01/20 (a)

 

 

2,000

 

 

1,224,020

 

California Health Facilities Financing Authority,
Refunding RB, St. Joseph Health System, Series A,
5.75%, 7/01/39

 

 

1,110

 

 

1,179,952

 

California State Public Works Board, RB, Various Capital
Projects, Sub-Series I-1, 6.38%, 11/01/34

 

 

600

 

 

657,642

 

California Statewide Communities Development
Authority, RB, John Muir Health, 5.13%, 7/01/39

 

 

1,090

 

 

1,094,850

 

Los Angeles Department of Airports, RB, Series A,
5.25%, 5/15/39

 

 

400

 

 

421,832

 

Los Angeles Department of Airports, Refunding RB,
Senior, Los Angeles International Airport, Series A,
5.00%, 5/15/40

 

 

2,975

 

 

3,084,658

 

Poway Unified School District, Special Tax Bonds,
Community Facilities District No. 6 Area, Series A,
6.13%, 9/01/33

 

 

1,750

 

 

1,767,990

 

San Diego Unified School District California, GO, CAB,
Election of 2008, Series A, 6.06%, 7/01/29 (a)

 

 

2,525

 

 

863,474

 

San Francisco City & County Public Utilities
Commission, RB, Series B, 5.00%, 11/01/39

 

 

4,770

 

 

5,053,672

 

San Marino Unified School District California, GO,
Series A (NPFGC) (a):

 

 

 

 

 

 

 

5.51%, 7/01/17

 

 

1,820

 

 

1,459,585

 

5.56%, 7/01/18

 

 

1,945

 

 

1,463,710

 

5.60%, 7/01/19

 

 

2,070

 

 

1,467,651

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

1,265

 

 

1,453,030

 

6.50%, 4/01/33

 

 

7,325

 

 

8,611,783

 

University of California, RB, Limited Project, Series B,
4.75%, 5/15/38

 

 

3,495

 

 

3,520,968

 

 

 

 

 

 




 

 

 

 

 

 

33,324,817

 









Colorado — 2.8%

 

 

 

 

 

 

 

Colorado Educational & Cultural Facilities Authority, RB,
Charter School, Colorado Springs, 5.50%, 7/01/40

 

 

1,055

 

 

1,072,323

 

Colorado Health Facilities Authority, Refunding RB,
Sisters of Leavenworth, Series A, 5.00%, 1/01/40

 

 

1,100

 

 

1,120,999

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee, Series A, 7.10%, 9/01/14

 

 

800

 

 

816,488

 

Plaza Metropolitan District No. 1 Colorado, Tax Allocation
Bonds, Subordinate Public Improvement Fee, Tax
Increment, 8.13%, 12/01/25

 

 

860

 

 

799,697

 

University of Colorado, RB, Series A, 5.38%, 6/01/38

 

 

920

 

 

1,001,383

 

 

 

 

 

 




 

 

 

 

 

 

4,810,890

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Connecticut — 1.6%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit, 5.00%, 11/15/40

 

$

685

 

$

717,462

 

Wesleyan University, 5.00%, 7/01/35

 

 

1,875

 

 

2,027,194

 

 

 

 

 

 




 

 

 

 

 

 

2,744,656

 









Delaware — 1.2%

 

 

 

 

 

 

 

Delaware State EDA, RB, Exempt Facilities, Indian River
Power, 5.38%, 10/01/45

 

 

2,050

 

 

2,041,882

 









District of Columbia — 2.0%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, RB:

 

 

 

 

 

 

 

CAB, 2nd Senior Lien, Series B (AGC), 7.08%,
10/01/34 (a)

 

 

10,170

 

 

2,404,493

 

First Senior Lien, Series A, 5.00%, 10/01/39

 

 

255

 

 

265,284

 

First Senior Lien, Series A, 5.25%, 10/01/44

 

 

745

 

 

786,221

 

 

 

 

 

 




 

 

 

 

 

 

3,455,998

 









Florida — 6.4%

 

 

 

 

 

 

 

Ballantrae Community Development District, Special
Assessment Bonds, 6.00%, 5/01/35

 

 

1,570

 

 

1,546,230

 

City of Clearwater Florida, RB, Series A, 5.25%,
12/01/39

 

 

870

 

 

925,610

 

County of Broward Florida, RB, Series A, 5.25%,
10/01/34

 

 

545

 

 

583,586

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.24%, 10/01/37 (a)

 

 

1,765

 

 

297,650

 

Water & Sewer System, 5.00%, 10/01/34

 

 

2,845

 

 

2,962,356

 

County of Miami-Dade Florida, Refunding RB, Miami
International Airport, Series A-1, 5.38%, 10/01/41

 

 

330

 

 

340,616

 

Greater Orlando Aviation Authority Florida, RB, Special
Purpose, JetBlue Airways Corp., AMT, 6.50%,
11/15/36

 

 

1,515

 

 

1,474,201

 

Hillsborough County IDA, RB, National Gypsum Co.,
Series B, AMT, 7.13%, 4/01/30

 

 

1,380

 

 

1,345,252

 

Palm Coast Park Community Development District,
Special Assessment Bonds, 5.70%, 5/01/37

 

 

495

 

 

309,043

 

Preserve at Wilderness Lake Community Development
District, Special Assessment Bonds, Series A, 5.90%,
5/01/34

 

 

1,195

 

 

1,065,845

 

 

 

 

 

 




 

 

 

 

 

 

10,850,389

 









Georgia — 1.4%

 

 

 

 

 

 

 

De Kalb Private Hospital Authority, Refunding RB,
Children’s Healthcare, 5.25%, 11/15/39

 

 

420

 

 

441,907

 

Metropolitan Atlanta Rapid Transit Authority, RB,
Third Series, 5.00%, 7/01/39

 

 

1,740

 

 

1,866,359

 

 

 

 

 

 




 

 

 

 

 

 

2,308,266

 









Guam — 0.5%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.75%, 11/15/29

 

 

455

 

 

503,976

 

7.00%, 11/15/39

 

 

275

 

 

308,113

 

 

 

 

 

 




 

 

 

 

 

 

812,089

 









Idaho — 1.2%

 

 

 

 

 

 

 

Power County Industrial Development Corp., RB,
FMC Corp. Project, AMT, 6.45%, 8/01/32

 

 

2,000

 

 

2,010,640

 

Illinois — 4.2%

 

 

 

 

 

 

 

City of Chicago Illinois, Special Assessment Bonds,
Lake Shore East, 6.75%, 12/01/32

 

 

1,000

 

 

981,920

 

Illinois Finance Authority, RB, Navistar International,
Recovery Zone, 6.50%, 10/15/40

 

 

775

 

 

804,070

 

Illinois Finance Authority, Refunding RB, Central DuPage
Health, Series B, 5.50%, 11/01/39

 

 

800

 

 

849,568

 


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

33




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Illinois (concluded)

 

 

 

 

 

 

 

Metropolitan Pier & Exposition Authority, Refunding RB
(AGM), McCormick Place Expansion Project:

 

 

 

 

 

 

 

CAB, Series B, 6.25%, 6/15/47 (a)

 

$

9,555

 

$

1,006,428

 

Series B, 5.00%, 6/15/50

 

 

1,585

 

 

1,582,195

 

Series B-2, 5.00%, 6/15/50

 

 

1,260

 

 

1,240,684

 

State of Illinois, RB, Build Illinois, Series B, 5.25%,
6/15/34

 

 

315

 

 

329,657

 

Territory of Guam, GO, Series A, 6.00%, 11/15/19

 

 

320

 

 

342,087

 

 

 

 

 

 




 

 

 

 

 

 

7,136,609

 









Indiana — 1.6%

 

 

 

 

 

 

 

Indiana Finance Authority, RB, Sisters of St. Francis
Health, 5.25%, 11/01/39

 

 

420

 

 

437,426

 

Indiana Finance Authority, Refunding RB, Parkview
Health System, Series A, 5.75%, 5/01/31

 

 

1,660

 

 

1,750,105

 

Indiana Municipal Power Agency, RB, Series B, 6.00%,
1/01/39

 

 

565

 

 

621,161

 

 

 

 

 

 




 

 

 

 

 

 

2,808,692

 









Kansas — 1.7%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Adventist Health, 5.75%, 11/15/38

 

 

1,785

 

 

1,972,979

 

Sisters of Leavenworth, Series A, 5.00%, 1/01/40

 

 

835

 

 

858,455

 

 

 

 

 

 




 

 

 

 

 

 

2,831,434

 









Kentucky — 0.3%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

 

510

 

 

540,539

 









Louisiana — 2.0%

 

 

 

 

 

 

 

East Baton Rouge Sewerage Commission, RB, Series A,
5.25%, 2/01/39

 

 

420

 

 

448,657

 

Louisiana Local Government Environmental Facilities &
Community Development Authority, RB, Westlake
Chemical Corp. Projects, 6.75%, 11/01/32

 

 

2,500

 

 

2,652,400

 

New Orleans Aviation Board, Refunding RB, Passenger
Facility Charge, Series A, 5.25%, 1/01/41

 

 

310

 

 

314,030

 

 

 

 

 

 




 

 

 

 

 

 

3,415,087

 









Maine — 0.1%

 

 

 

 

 

 

 

Maine Health & Higher Educational Facilities Authority,
RB, Series A, 5.00%, 7/01/39

 

 

150

 

 

155,928

 









Maryland — 0.8%

 

 

 

 

 

 

 

Maryland EDC, RB, Transportation Facilities Project,
Series A, 5.75%, 6/01/35

 

 

220

 

 

229,203

 

Maryland EDC, Refunding RB, CNX Marine
Terminals, Inc., 5.75%, 9/01/25

 

 

415

 

 

423,715

 

Maryland State Energy Financing Administration, RB,
Cogeneration, AES Warrior Run, AMT, 7.40%, 9/01/19

 

 

750

 

 

750,397

 

 

 

 

 

 




 

 

 

 

 

 

1,403,315

 









Massachusetts — 4.3%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB,
Neville Communities, Series A (Ginnie Mae):

 

 

 

 

 

 

 

5.75%, 6/20/22

 

 

600

 

 

660,324

 

6.00%, 6/20/44

 

 

1,500

 

 

1,639,005

 

Massachusetts Development Finance Agency, Refunding
RB, Boston University, Series P, 5.45%, 5/15/59

 

 

845

 

 

914,188

 

Massachusetts Health & Educational Facilities Authority,
Refunding RB, Partners Healthcare, Series J1, 5.00%,
7/01/39

 

 

910

 

 

935,735

 

Massachusetts HFA, RB, M/F Housing, Series A, AMT,
5.25%, 12/01/48

 

 

2,100

 

 

2,076,333

 

Massachusetts HFA, Refunding HRB, Series F, AMT,
5.70%, 6/01/40

 

 

1,100

 

 

1,135,156

 

 

 

 

 

 




 

 

 

 

 

 

7,360,741

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan — 4.0%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Senior Lien, Series B
(AGM), 7.50%, 7/01/33

 

$

460

 

$

560,547

 

Flint Hospital Building Authority Michigan, Refunding RB,
Hurley Medical Center (ACA), 6.00%, 7/01/20

 

 

960

 

 

957,811

 

Kalamazoo Hospital Finance Authority, Refunding RB,
Bronson Methodist Hospital, 5.50%, 5/15/36

 

 

690

 

 

706,967

 

Michigan State Hospital Finance Authority, Refunding RB,
Hospital, Henry Ford Health, 5.75%, 11/15/39

 

 

1,520

 

 

1,571,908

 

Michigan Strategic Fund, Refunding RB, Detroit
Edison Co., Pollution, Series C, AMT (Syncora),
5.65%, 9/01/29

 

 

2,935

 

 

2,943,805

 

 

 

 

 

 




 

 

 

 

 

 

6,741,038

 









Minnesota — 1.0%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, Refunding RB, Fairview
Health Services, Series A, 6.75%, 11/15/32

 

 

1,540

 

 

1,756,047

 









Montana — 0.7%

 

 

 

 

 

 

 

Montana Facility Finance Authority, Refunding RB,
Sisters of Leavenworth, Series A, 4.75%, 1/01/40

 

 

1,120

 

 

1,158,662

 









New Hampshire — 1.0%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
Refunding RB, Dartmouth-Hitchcock, 6.00%, 8/01/38

 

 

1,530

 

 

1,648,529

 









New Jersey — 5.0%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

 

3,050

 

 

3,001,840

 

Continental Airlines Inc. Project, AMT, 6.63%,
9/15/12

 

 

2,000

 

 

2,027,020

 

New Jersey State Turnpike Authority, RB, Series C (AGM),
5.00%, 1/01/30

 

 

2,500

 

 

2,627,425

 

Tobacco Settlement Financing Corp. New Jersey,
Refunding RB, Series 1A, 4.50%, 6/01/23

 

 

920

 

 

861,010

 

 

 

 

 

 




 

 

 

 

 

 

8,517,295

 









New York — 5.7%

 

 

 

 

 

 

 

City of Troy New York, Refunding RB, Rensselaer
Polytechnic, Series A, 5.13%, 9/01/40

 

 

685

 

 

708,769

 

Dutchess County Industrial Development Agency
New York, Refunding RB, St. Francis Hospital, Series A,
7.50%, 3/01/29

 

 

885

 

 

889,328

 

Long Island Power Authority, Refunding RB, Series A,
5.75%, 4/01/39

 

 

1,050

 

 

1,165,038

 

Metropolitan Transportation Authority, Refunding RB,
Series B, 5.00%, 11/15/34

 

 

1,270

 

 

1,351,674

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

Continental Airlines Inc. Project, AMT, 8.00%,
11/01/12

 

 

350

 

 

355,789

 

Continental Airlines Inc. Project, Mandatory Put
Bonds, AMT, 8.38%, 11/01/16

 

 

525

 

 

532,434

 

Series C, 6.80%, 6/01/28

 

 

415

 

 

435,808

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

3,300

 

 

3,571,689

 

New York Liberty Development Corp., Refunding RB,
Second Priority, Bank of America Tower at One Bryant
Park Project, 6.38%, 7/15/49

 

 

615

 

 

658,929

 

 

 

 

 

 




 

 

 

 

 

 

9,669,458

 









North Carolina — 1.7%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency, RB,
Duke Energy Carolinas, Series B, 4.38%, 10/01/31

 

 

810

 

 

794,189

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Duke Energy Carolinas, Series A,
4.63%, 11/01/40

 

 

1,355

 

 

1,318,551

 

North Carolina Medical Care Commission, RB, Duke
University Health System, Series A, 5.00%, 6/01/42

 

 

705

 

 

733,933

 

 

 

 

 

 




 

 

 

 

 

 

2,846,673

 










 

 

 

See Notes to Financial Statements.




34

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Ohio — 0.8%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB,
Asset-Backed, Senior Series A-2, 6.50%, 6/01/47

 

$

1,565

 

$

1,308,590

 

Pennsylvania — 6.0%

 

 

 

 

 

 

 

Allegheny County Hospital Development Authority,
Refunding RB, Health System, West Penn, Series A,
5.38%, 11/15/40

 

 

1,095

 

 

842,931

 

Montgomery County Higher Education & Health
Authority, Refunding RB, Abington Memorial Hospital,
Series A, 5.13%, 6/01/33

 

 

325

 

 

329,833

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

American Water Co. Project, 6.20%, 4/01/39

 

 

1,830

 

 

2,013,677

 

Aqua Pennsylvania Inc. Project, 5.00%, 11/15/40

 

 

950

 

 

979,251

 

National Gypsum Co., Series A, AMT, 6.25%,
11/01/27

 

 

2,750

 

 

2,454,127

 

Pennsylvania Turnpike Commission, RB, Sub-Series B,
5.25%, 6/01/39

 

 

2,955

 

 

3,072,018

 

Philadelphia Authority for Industrial Development, RB,
Commercial Development, AMT, 7.75%, 12/01/17

 

 

540

 

 

540,691

 

 

 

 

 

 




 

 

 

 

 

 

10,232,528

 









Puerto Rico — 4.8%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Public
Improvement, Series C, 6.00%, 7/01/39

 

 

1,490

 

 

1,637,689

 

Puerto Rico Industrial Medical & Environmental
Pollution Control Facilities Financing Authority, RB,
Special Facilities, American Airlines, Series A,
6.45%, 12/01/25

 

 

905

 

 

850,745

 

Puerto Rico Sales Tax Financing Corp., RB:

 

 

 

 

 

 

 

CAB, Series A, 6.40%, 8/01/35 (a)

 

 

10,000

 

 

2,163,800

 

First Sub-Series A, 6.52%, 8/01/44

 

 

2,790

 

 

3,211,681

 

Puerto Rico Sales Tax Financing Corp., Refunding RB,
CAB, First Sub-Series C, 6.30%, 8/01/38 (a)

 

 

2,145

 

 

383,483

 

 

 

 

 

 




 

 

 

 

 

 

8,247,398

 









Tennessee — 1.6%

 

 

 

 

 

 

 

Hardeman County Correctional Facilities Corp.
Tennessee, RB, Series B, 7.38%, 8/01/17

 

 

2,200

 

 

2,146,188

 

Rutherford County Health & Educational Facilities
Board, RB, Ascension Health Senior Credit Group,
5.00%, 11/15/40

 

 

510

 

 

536,505

 

 

 

 

 

 




 

 

 

 

 

 

2,682,693

 









Texas — 10.5%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, TXU Electric Co.
Project, Series C, Mandatory Put Bonds, AMT, 5.75%,
5/01/36 (b)

 

 

825

 

 

783,750

 

Brazos River Harbor Navigation District, Refunding RB,
Dow Chemical Co. Project, Series A7, AMT, 6.63%,
5/15/33

 

 

2,500

 

 

2,565,875

 

City of Dallas Texas, Refunding RB, 5.00%, 10/01/35

 

 

760

 

 

817,844

 

City of Houston Texas, RB, Senior Lien, Series A, 5.50%,
7/01/39

 

 

535

 

 

578,180

 

Harris County Health Facilities Development Corp.,
Refunding RB, Memorial Hermann Healthcare System,
Series B, 7.25%, 12/01/35

 

 

1,380

 

 

1,584,419

 

La Vernia Higher Education Finance Corp., RB, KIPP Inc.,
6.38%, 8/15/44

 

 

590

 

 

623,659

 

Matagorda County Hospital District Texas, RB (FHA),
5.00%, 2/15/35

 

 

3,265

 

 

3,298,336

 

North Texas Tollway Authority, RB, Toll, 2nd Tier, Series F,
6.13%, 1/01/31

 

 

3,020

 

 

3,258,429

 


 

 

 

 

 

 

 

 

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

 

$

2,165

 

$

2,353,312

 

NTE Mobility Partners LLC, North Tarrant Express
Managed Lanes Project, 6.88%, 12/31/39

 

 

1,940

 

 

2,105,171

 

 

 

 

 

 




 

 

 

 

 

 

17,968,975

 









U.S. Virgin Islands — 1.6%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT, 6.50%,
7/01/21

 

 

2,680

 

 

2,726,498

 









Utah — 0.8%

 

 

 

 

 

 

 

City of Riverton Utah, RB, IHC Health Services Inc.,
5.00%, 8/15/41

 

 

1,400

 

 

1,455,440

 









Vermont — 0.6%

 

 

 

 

 

 

 

Vermont Educational & Health Buildings Financing
Agency, RB, Developmental & Mental Health, Series A,
6.50%, 6/15/32

 

 

1,000

 

 

972,780

 









Virginia — 1.9%

 

 

 

 

 

 

 

Tobacco Settlement Financing Corp. Virginia, Refunding
RB, Senior Series B1, 5.00%, 6/01/47

 

 

2,505

 

 

1,758,660

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.35%,
7/01/31

 

 

1,500

 

 

1,511,130

 

 

 

 

 

 




 

 

 

 

 

 

3,269,790

 









Washington — 0.5%

 

 

 

 

 

 

 

Seattle Housing Authority Washington, HRB,
Replacement Housing Projects, 6.13%, 12/01/32

 

 

945

 

 

919,863

 









Wisconsin — 4.0%

 

 

 

 

 

 

 

State of Wisconsin, Refunding RB, Series A, 6.00%,
5/01/36

 

 

3,620

 

 

4,118,076

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit Group, 5.00%,
11/15/33

 

 

1,235

 

 

1,287,055

 

SynergyHealth Inc., 6.00%, 11/15/32

 

 

1,360

 

 

1,407,926

 

 

 

 

 

 




 

 

 

 

 

 

6,813,057

 









Total Municipal Bonds — 109.8%

 

 

 

 

 

187,125,859

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

 

 

 

 

 









California — 6.4%

 

 

 

 

 

 

 

Bay Area Toll Authority, Refunding RB, San Francisco
Bay Area, Series F-1, 5.63%, 4/01/44

 

 

1,640

 

 

1,820,544

 

California Educational Facilities Authority, RB, University
of Southern California, Series A, 5.25%, 10/01/39

 

 

1,335

 

 

1,445,418

 

Los Angeles Community College District California, GO,
Election of 2001, Series A (AGM), 5.00%, 8/01/32

 

 

1,170

 

 

1,227,295

 

San Diego Community College District California, GO,
Election of 2002, 5.25%, 8/01/33

 

 

553

 

 

600,185

 

Sequoia Union High School District California, GO,
Refunding, Election of 2004, Series B (AGM), 5.50%,
7/01/35

 

 

5,519

 

 

5,843,198

 

 

 

 

 

 




 

 

 

 

 

 

10,936,640

 









Colorado — 2.5%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB (AGM):

 

 

 

 

 

 

 

Catholic Health, Series C-3, 5.10%, 10/01/41

 

 

1,870

 

 

1,922,771

 

Catholic Health, Series C-7, 5.00%, 9/01/36

 

 

1,200

 

 

1,233,240

 

Colorado Health Facilities Authority, Refunding RB,
Catholic Healthcare, Series A, 5.50%, 7/01/34

 

 

1,080

 

 

1,162,906

 

 

 

 

 

 




 

 

 

 

 

 

4,318,917

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

35




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

Par
(000)

 

Value

 









Connecticut — 2.9%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB, Yale University:

 

 

 

 

 

 

 

Series T-1, 4.70%, 7/01/29

 

$

2,300

 

$

2,469,372

 

Series X-3, 4.85%, 7/01/37

 

 

2,370

 

 

2,501,037

 

 

 

 

 

 




 

 

 

 

 

 

4,970,409

 









Georgia — 1.0%

 

 

 

 

 

 

 

Private Colleges & Universities Authority, Refunding RB,
Emory University, Series C, 5.00%, 9/01/38

 

 

1,649

 

 

1,750,329

 









Massachusetts — 1.9%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

2,999

 

 

3,174,115

 









New Hampshire — 0.7%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
Refunding RB, Dartmouth College, 5.25%, 6/01/39

 

 

1,019

 

 

1,120,694

 









New York — 4.4%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB,
Series FF-2, 5.50%, 6/15/40

 

 

810

 

 

914,039

 

New York State Dormitory Authority, ERB, Series F,
5.00%, 3/15/35

 

 

2,910

 

 

3,039,676

 

Sales Tax Asset Receivable Corp., RB, Series A (AMBAC),
5.25%, 10/15/27

 

 

3,200

 

 

3,533,859

 

 

 

 

 

 




 

 

 

 

 

 

7,487,574

 









North Carolina — 0.5%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Wake Forest University, 5.00%,
1/01/38

 

 

800

 

 

846,680

 









Ohio — 4.4%

 

 

 

 

 

 

 

State of Ohio, Refunding RB, Cleveland Clinic Health,
Series A, 5.50%, 1/01/39

 

 

6,980

 

 

7,516,692

 









Tennessee — 1.5%

 

 

 

 

 

 

 

Shelby County Health Educational & Housing Facilities
Board, Refunding RB, St. Jude’s Children’s Research
Hospital, 5.00%, 7/01/31

 

 

2,500

 

 

2,615,275

 









Texas — 2.1%

 

 

 

 

 

 

 

County of Harris Texas, RB, Senior Lien, Toll Road,
Series A, 5.00%, 8/15/38

 

 

3,360

 

 

3,528,000

 









Virginia — 7.4%

 

 

 

 

 

 

 

University of Virginia, Refunding RB, General, 5.00%,
6/01/40

 

 

2,730

 

 

2,927,379

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.38%,
7/01/36

 

 

7,900

 

 

8,047,414

 

Virginia Small Business Financing Authority, Refunding
RB, Sentara Healthcare, 5.00%, 11/01/40

 

 

1,553

 

 

1,635,417

 

 

 

 

 

 




 

 

 

 

 

 

12,610,210

 









Washington — 0.8%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit Authority, RB,
Series A (AGM), 5.00%, 11/01/32

 

 

1,365

 

 

1,439,718

 









Wisconsin — 1.8%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority,
Refunding RB, Froedtert & Community Health Inc.,
5.25%, 4/01/39

 

 

2,859

 

 

3,008,230

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 38.3%

 

 

 

 

 

65,323,483

 









Total Long-Term Investments
(Cost — $240,530,777) — 148.1%

 

 

 

 

 

252,449,342

 










 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 









FFI Institutional Tax-Exempt Fund, 0.13% (d)(e)

 

 

1,177,035

 

$

1,177,035

 









Total Short-Term Securities
(Cost — $1,177,035) — 0.7%

 

 

 

 

 

1,177,035

 

Total Investments (Cost — $241,707,812*) — 148.8%

 

 

 

 

 

253,626,377

 

Other Assets Less Liabilities — 3.2%

 

 

 

 

 

5,504,236

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (19.7)%

 

 

 

 

 

(33,642,528

)

Preferred Shares, at Redemption Value — (32.3)%

 

 

 

 

 

(55,054,000

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

170,434,085

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

207,383,238

 

 

 




Gross unrealized appreciation

 

$

14,245,185

 

Gross unrealized depreciation

 

 

(1,619,230

)

 

 




Net unrealized appreciation

 

$

12,625,955

 

 

 





 

 

(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)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(d)

Investments in companies considered to be an affiliate of the Fund during the period, 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,
2010

 

Net
Activity

 

Shares
Held at
October 31,
2010

 

Income

 















FFI Institutional Tax-Exempt Fund

 

 

607,735

 

 

569,300

 

 

1,177,035

 

$

916

 
















 

 

(e)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.




36

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund II, Inc. (MUH)


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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 Fund’s own assumptions used in determining the fair value of investments) The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of October 31, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 















Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

252,449,342

 

 

 

$

252,449,342

 

Short-Term Securities

 

$

1,177,035

 

 

 

 

 

 

1,177,035

 

 

 













Total

 

$

1,177,035

 

$

252,449,342

 

 

 

$

253,626,377

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

37




 

 


 

 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









Alabama — 2.6%

 

 

 

 

 

 

 

Birmingham Special Care Facilities Financing Authority,
RB, Children’s Hospital (AGC), 6.00%, 6/01/39

 

$

2,330

 

$

2,558,503

 

County of Jefferson Alabama, RB, Series A, 5.50%,
1/01/22

 

 

2,170

 

 

2,015,583

 

 

 

 

 

 




 

 

 

 

 

 

4,574,086

 









Arizona — 0.5%

 

 

 

 

 

 

 

State of Arizona, COP, Department of Administration,
Series A (AGM):

 

 

 

 

 

 

 

5.25%, 10/01/28

 

 

715

 

 

756,720

 

5.00%, 10/01/29

 

 

185

 

 

191,179

 

 

 

 

 

 




 

 

 

 

 

 

947,899

 









Arkansas — 3.6%

 

 

 

 

 

 

 

Arkansas Development Finance Authority, Refunding RB,
Series C (NPFGC):

 

 

 

 

 

 

 

5.35%, 12/01/11 (a)

 

 

535

 

 

568,860

 

5.35%, 12/01/35

 

 

5,685

 

 

5,763,112

 

 

 

 

 

 




 

 

 

 

 

 

6,331,972

 









California — 12.0%

 

 

 

 

 

 

 

Central Unified School District, GO, Election of 2008,
Series A (AGC), 5.63%, 8/01/33

 

 

1,325

 

 

1,473,334

 

City of Vista California, COP, Refunding, Community
Projects (NPFGC), 5.00%, 5/01/37

 

 

2,265

 

 

2,212,950

 

County of Sacramento California, RB, Senior Series A
(AGC), 5.50%, 7/01/41

 

 

2,100

 

 

2,234,841

 

East Side Union High School District-Santa Clara
County California, GO, Election of 2002, Series B (NPFGC), 5.00%, 8/01/11 (a)

 

 

1,800

 

 

1,899,810

 

Modesto Schools Infrastructure Financing Agency,
Special Tax Bonds (AMBAC), 5.50%, 9/01/36

 

 

2,565

 

 

2,426,336

 

Oceanside Unified School District California, GO,
Series A (AGC), 5.25%, 8/01/33

 

 

1,825

 

 

1,951,856

 

Oxnard Union High School District, GO, Refunding,
Election of 2004, Series A (AGM), 5.00%, 8/01/40

 

 

1,885

 

 

1,948,091

 

San Pablo Joint Powers Financing Authority California,
Tax Allocation Bonds, Refunding, CAB (NPFGC) (b):

 

 

 

 

 

 

 

5.66%, 12/01/24

 

 

2,635

 

 

1,114,763

 

5.66%, 12/01/25

 

 

2,355

 

 

926,386

 

5.66%, 12/01/26

 

 

2,355

 

 

858,704

 

Santa Ana Unified School District, GO (NPFGC), 5.00%,
8/01/32

 

 

790

 

 

794,550

 

West Contra Costa Unified School District California, GO,
Election of 2000, Series C (NPFGC), 5.00%, 8/01/21

 

 

3,480

 

 

3,534,149

 

 

 

 

 

 




 

 

 

 

 

 

21,375,770

 









Colorado — 1.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Hospital,
NCMC Inc. Project, Series B (AGM), 6.00%, 5/15/26

 

 

1,900

 

 

2,159,445

 









District of Columbia — 0.2%

 

 

 

 

 

 

 

District of Columbia, RB, Deed Tax, Housing Production
Trust Fund, Series A (NPFGC), 5.00%, 6/01/32

 

 

400

 

 

407,624

 









Florida — 13.0%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.24%, 10/01/37 (b)

 

 

1,075

 

 

181,288

 

Miami International Airport, Series A, AMT (AGM),
5.50%, 10/01/41

 

 

3,900

 

 

4,015,830

 

Water & Sewer System (AGM), 5.00%, 10/01/39

 

 

6,640

 

 

6,975,320

 

County of Miami-Dade Florida, Refunding RB, Water &
Sewer System (AGM), 5.00%, 10/01/29

 

 

1,565

 

 

1,700,106

 

Jacksonville Port Authority, RB, AMT (AGC), 6.00%,
11/01/38

 

 

2,215

 

 

2,269,622

 

Orange County School Board, COP, Series A (AGC),
5.50%, 8/01/34

 

 

7,395

 

 

7,997,027

 

 

 

 

 

 




 

 

 

 

 

 

23,139,193

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









Georgia — 4.8%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB (AGM), 5.25%,
10/01/39

 

$

3,495

 

$

3,650,737

 

Georgia Higher Education Facilities Authority, RB, USG
Real Estate III, Series A (AGC), 5.00%, 6/15/38

 

 

1,305

 

 

1,341,070

 

Gwinnett County Hospital Authority, Refunding RB,
Gwinnett Hospital System, Series D (AGM), 5.50%,
7/01/41

 

 

2,075

 

 

2,157,481

 

Metropolitan Atlanta Rapid Transit Authority, RB, Third
Indenture, Series B (AGM), 5.00%, 7/01/34

 

 

1,260

 

 

1,337,629

 

 

 

 

 

 




 

 

 

 

 

 

8,486,917

 









Illinois — 12.5%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO, Refunding,
Chicago School Reform Board, Series A (NPFGC), 5.50%,
12/01/26

 

 

1,200

 

 

1,387,908

 

Chicago Transit Authority, RB, Federal Transit
Administration Section 5309, Series A (AGC), 6.00%,
6/01/26

 

 

2,000

 

 

2,334,180

 

City of Chicago Illinois, GO, Refunding, Projects,
Series A (AGM):

 

 

 

 

 

 

 

5.00%, 1/01/28

 

 

1,405

 

 

1,499,669

 

5.00%, 1/01/29

 

 

2,180

 

 

2,311,498

 

5.00%, 1/01/30

 

 

870

 

 

917,728

 

City of Chicago Illinois, RB (AGM):

 

 

 

 

 

 

 

General, Third Lien, Series C, 5.25%, 1/01/35

 

 

1,255

 

 

1,317,311

 

Series A, 5.00%, 1/01/33

 

 

8,000

 

 

8,188,160

 

City of Chicago Illinois, Refunding RB, Second Lien
(NPFGC), 5.50%, 1/01/30

 

 

1,310

 

 

1,481,937

 

State of Illinois, RB, Build Illinois, Series B, 5.25%,
6/15/28

 

 

2,500

 

 

2,699,475

 

 

 

 

 

 




 

 

 

 

 

 

22,137,866

 









Indiana — 4.3%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB, Series A (NPFGC),
5.00%, 1/01/42

 

 

6,000

 

 

6,114,420

 

Indianapolis Local Public Improvement Bond Bank,
Refunding RB, Waterworks Project, Series A (AGC),
5.50%, 1/01/38

 

 

1,430

 

 

1,570,869

 

 

 

 

 

 




 

 

 

 

 

 

7,685,289

 









Iowa — 1.1%

 

 

 

 

 

 

 

Iowa Finance Authority, Refunding RB, Iowa Health
System (AGC), 5.25%, 2/15/29

 

 

1,770

 

 

1,906,626

 









Kentucky — 0.8%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
RB, Louisville Arena, Sub-Series A-1 (AGC), 6.00%,
12/01/38

 

 

320

 

 

345,434

 

Kentucky State Property & Buildings Commission,
Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/29

 

 

1,000

 

 

1,099,630

 

 

 

 

 

 




 

 

 

 

 

 

1,445,064

 









Louisiana — 1.3%

 

 

 

 

 

 

 

Louisiana State Citizens Property Insurance Corp., RB,
Series C-3 (AGC), 6.13%, 6/01/25

 

 

2,055

 

 

2,313,827

 









Maine — 1.0%

 

 

 

 

 

 

 

City of Portland Maine, RB, General (AGM), 5.25%,
1/01/35

 

 

1,680

 

 

1,768,570

 









Massachusetts — 1.6%

 

 

 

 

 

 

 

Massachusetts HFA, RB, Rental Mortgage, Series C, AMT
(AGM), 5.50%, 7/01/32

 

 

2,440

 

 

2,468,133

 

Massachusetts HFA, Refunding RB, Housing
Development, Series A, AMT (NPFGC), 5.15%,
6/01/11

 

 

315

 

 

315,684

 

 

 

 

 

 




 

 

 

 

 

 

2,783,817

 










 

 

 

See Notes to Financial Statements.




38

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









Michigan — 15.3%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series B (NPFGC), 5.50%, 7/01/29

 

$

2,410

 

$

2,515,293

 

Senior Lien, Series B (AGM), 7.50%, 7/01/33

 

 

2,000

 

 

2,437,160

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series C (BHAC), 5.75%, 7/01/27

 

 

1,580

 

 

1,734,761

 

Second Lien, Series E (BHAC), 5.75%, 7/01/31

 

 

3,240

 

 

3,504,449

 

Senior Lien, Series C-1 (AGM), 7.00%, 7/01/27

 

 

4,810

 

 

5,737,608

 

Senior Lien, Series C-2 (BHAC), 5.25%, 7/01/29

 

 

1,910

 

 

2,008,269

 

Michigan State Building Authority, Refunding RB,
Facilities Program, Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

875

 

 

959,858

 

5.25%, 10/15/25

 

 

455

 

 

495,327

 

Michigan Strategic Fund, Refunding RB, AMT (Syncora)
Detroit Edison Co.:

 

 

 

 

 

 

 

Pollution, Series B, 5.65%, 9/01/29

 

 

1,500

 

 

1,504,500

 

Pollution, Series C, 5.65%, 9/01/29

 

 

2,050

 

 

2,056,150

 

Project, Series A, 5.50%, 6/01/30

 

 

2,000

 

 

2,000,460

 

Royal Oak Hospital Finance Authority Michigan,
Refunding RB, William Beaumont Hospital, 8.25%,
9/01/39

 

 

1,910

 

 

2,295,935

 

 

 

 

 

 




 

 

 

 

 

 

27,249,770

 









Minnesota — 0.9%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, Refunding RB, Fairview
Health Services, Series B (AGC), 6.50%, 11/15/38

 

 

1,325

 

 

1,509,838

 









Mississippi — 1.4%

 

 

 

 

 

 

 

Mississippi Development Bank Special Obligation,
Refunding RB, Jackson Mississippi Water and Sewer
System (AGM), 5.00%, 9/01/34

 

 

2,500

 

 

2,555,850

 









Nevada — 6.4%

 

 

 

 

 

 

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Las Vegas-McCarran International Airport, Series A
(AGC), 5.25%, 7/01/39

 

 

3,510

 

 

3,636,395

 

Las Vegas-McCarran, Series A-1, AMT (AGM), 5.00%,
7/01/23

 

 

1,750

 

 

1,796,795

 

Subordinate Lien, Series A-2 (NPFGC), 5.00%,
7/01/36

 

 

6,000

 

 

6,017,520

 

 

 

 

 

 




 

 

 

 

 

 

11,450,710

 









New Jersey — 7.4%

 

 

 

 

 

 

 

New Jersey EDA, RB, Motor Vehicle Surcharge, Series A
(NPFGC), 5.25%, 7/01/33

 

 

6,700

 

 

6,904,484

 

New Jersey Health Care Facilities Financing Authority,
RB, Virtua Health (AGC), 5.50%, 7/01/38

 

 

2,100

 

 

2,277,513

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series A (AGC), 5.63%,
12/15/28

 

 

3,500

 

 

3,971,695

 

 

 

 

 

 




 

 

 

 

 

 

13,153,692

 









New York — 3.4%

 

 

 

 

 

 

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

1,400

 

 

1,515,262

 

Sales Tax Asset Receivable Corp., RB, Series A (AMBAC),
5.25%, 10/15/27

 

 

4,095

 

 

4,521,863

 

 

 

 

 

 




 

 

 

 

 

 

6,037,125

 









Pennsylvania — 1.0%

 

 

 

 

 

 

 

Delaware River Port Authority, RB, Series D (AGC),
5.00%, 1/01/40

 

 

1,720

 

 

1,797,090

 









Puerto Rico — 1.4%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 6.38%, 8/01/39

 

 

2,115

 

 

2,417,297

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









Texas — 21.9%

 

 

 

 

 

 

 

City of Austin Texas, Refunding RB, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 11/15/28

 

$

1,080

 

$

1,169,521

 

5.00%, 11/15/29

 

 

1,365

 

 

1,467,621

 

City of Dallas Texas, Refunding RB (AGC), 5.25%,
8/15/38

 

 

1,250

 

 

1,309,062

 

City of Houston Texas, Refunding RB, Combined,
First Lien, Series A (AGC), 6.00%, 11/15/35

 

 

4,000

 

 

4,633,680

 

Harris County Health Facilities Development Corp.,
Refunding RB, Memorial Hermann Healthcare
System, Series B, 7.25%, 12/01/35

 

 

600

 

 

688,878

 

Lower Colorado River Authority, Refunding RB, LCRA
Transmission Services Project (AGC), 5.50%,
5/15/36

 

 

2,610

 

 

2,801,052

 

Lubbock Cooper ISD Texas, GO, School Building (AGC),
5.75%, 2/15/42

 

 

775

 

 

843,061

 

North Texas Tollway Authority, Refunding RB (NPFGC)
System, First Tier:

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

6,710

 

 

7,117,498

 

Series A, 5.13%, 1/01/28

 

 

5,000

 

 

5,258,250

 

Series A, 5.63%, 1/01/33

 

 

6,585

 

 

7,017,766

 

Series B, 5.75%, 1/01/40

 

 

6,275

 

 

6,656,081

 

 

 

 

 

 




 

 

 

 

 

 

38,962,470

 









Utah — 1.5%

 

 

 

 

 

 

 

City of Riverton Utah, RB, IHC Health Services Inc.,
5.00%, 8/15/41

 

 

2,485

 

 

2,583,406

 









Virginia — 1.7%

 

 

 

 

 

 

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.35%,
7/01/31

 

 

1,260

 

 

1,269,349

 

Virginia Public School Authority, RB, School Financing,
6.50%, 12/01/35

 

 

1,500

 

 

1,751,265

 

 

 

 

 

 




 

 

 

 

 

 

3,020,614

 









Washington — 1.3%

 

 

 

 

 

 

 

Chelan County Public Utility District No. 1, RB, Chelan
Hydro System, Series A, AMT (AMBAC), 5.45%, 7/01/37

 

 

2,310

 

 

2,315,290

 

 

 

 

 

 




Total Municipal Bonds — 124.1%

 

 

 

 

 

220,517,117

 









 

 

 

 

 

 

 

 









Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

 

 

 

 

 









Alabama — 1.2%

 

 

 

 

 

 

 

Mobile Board of Water & Sewer Commissioners, RB
(NPFGC), 5.00%, 1/01/31

 

 

2,120

 

 

2,180,123

 









California — 2.6%

 

 

 

 

 

 

 

City of San Jose California, GO, Libraries, Parks, and
Public Safety Project (NPFGC), 5.00%, 9/01/30

 

 

1,258

 

 

1,320,136

 

Sequoia Union High School District California, GO,
Refunding, Election of 2004, Series B (AGM), 5.50%,
7/01/35

 

 

3,149

 

 

3,334,433

 

 

 

 

 

 




 

 

 

 

 

 

4,654,569

 









Colorado — 3.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic Health,
Series C-3 (AGM), 5.10%, 10/01/41

 

 

5,610

 

 

5,768,314

 









District of Columbia — 0.7%

 

 

 

 

 

 

 

District of Columbia Water & Sewer Authority, RB,
Series A, 6.00%, 10/01/35

 

 

1,040

 

 

1,183,950

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

39




 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

Par
(000)

 

Value

 









Florida — 8.0%

 

 

 

 

 

 

 

City of St. Petersburg Florida, Refunding RB (NPFGC),
5.00%, 10/01/35

 

$

4,302

 

$

4,378,703

 

County of Miami-Dade Florida, GO, Building Better
Communities Program, Series B-1, 6.00%, 7/01/38

 

 

7,500

 

 

8,424,150

 

Lee County Housing Finance Authority, RB, Multi-County
Program, Series A-2, AMT (Ginnie Mae), 6.00%,
9/01/40

 

 

1,290

 

 

1,450,902

 

 

 

 

 

 




 

 

 

 

 

 

14,253,755

 









Georgia — 2.4%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB (AGM), 5.25%,
10/01/34

 

 

4,000

 

 

4,187,120

 









Illinois — 1.5%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB, Second Lien
(AGM), 5.25%, 11/01/33

 

 

2,509

 

 

2,704,499

 









Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky State Property & Building Commission,
Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27

 

 

1,406

 

 

1,558,538

 









Massachusetts — 4.8%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

8,008

 

 

8,474,887

 









Nevada — 5.5%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

5,000

 

 

5,647,700

 

Series B, 5.50%, 7/01/29

 

 

3,749

 

 

4,192,329

 

 

 

 

 

 




 

 

 

 

 

 

9,840,029

 









New Jersey — 1.4%

 

 

 

 

 

 

 

New Jersey State Housing & Mortgage Finance Agency,
RB, S/F Housing, Series CC, 5.25%, 10/01/29

 

 

2,401

 

 

2,535,938

 









Washington — 2.5%

 

 

 

 

 

 

 

City of Bellevue Washington, GO, Refunding (NPFGC),
5.50%, 12/01/39

 

 

4,002

 

 

4,493,078

 

 

 

 

 

 

 

 

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 34.8%

 

 

 

 

 

61,834,800

 









Total Long-Term Investments
(Cost — $270,162,093) — 158.9%

 

 

 

 

 

282,351,917

 










 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.13% (d)(e)

 

 

10,941,587

 

 

10,941,587

 









Total Short-Term Securities
(Cost — $10,941,587) — 6.2%

 

 

 

 

 

10,941,587

 









Total Investments (Cost — $281,103,680*) — 165.1%

 

 

 

 

 

293,293,504

 

Other Assets Less Liabilities — 1.8%

 

 

 

 

 

3,163,431

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (17.9)%

 

 

 

 

 

(31,838,750

)

Preferred Shares, at Redemption Value — (49.0)%

 

 

 

 

 

(87,004,682

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

177,613,503

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

249,235,422

 

 

 




Gross unrealized appreciation

 

$

13,192,266

 

Gross unrealized depreciation

 

 

(949,598

)

 

 




Net unrealized appreciation

 

$

12,242,668

 

 

 





 

 

(a)

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.

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(d)

Investments in companies considered to be an affiliate of the Fund during the period, 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,
2010

 

Net
Activity

 

Shares
Held at
October 31,
2010

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

8,653,666

 

 

2,287,921

 

 

10,941,587

 

$

8,749

 












 

 

 

(e)

Represents the current yield as of report date.

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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 Fund’s own assumptions used in determining the fair value of investments) The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of October 31, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

282,351,917

 

 

 

$

282,351,917

 

Short-Term Securities

 

$

10,941,587

 

 

 

 

 

 

10,941,587

 

 

 













Total

 

$

10,941,587

 

$

282,351,917

 

 

 

$

293,293,504

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

See Notes to Financial Statements.




40

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









Alabama — 2.8%

 

 

 

 

 

 

 

Birmingham Special Care Facilities Financing Authority,
RB, Children’s Hospital (AGC), 6.00%, 6/01/34

 

$

4,615

 

$

5,093,068

 

County of Jefferson Alabama, RB, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/21

 

 

5,500

 

 

5,133,535

 

5.25%, 1/01/23

 

 

6,500

 

 

5,870,345

 

 

 

 

 

 




 

 

 

 

 

 

16,096,948

 









Arizona — 5.3%

 

 

 

 

 

 

 

City of Tucson Arizona, COP (AGC):

 

 

 

 

 

 

 

4.25%, 7/01/21

 

 

1,870

 

 

1,976,908

 

4.25%, 7/01/22

 

 

1,895

 

 

1,984,539

 

4.50%, 7/01/24

 

 

2,120

 

 

2,220,679

 

Refunding, 4.00%, 7/01/20

 

 

2,325

 

 

2,468,638

 

Maricopa County IDA Arizona, RB, Arizona Charter
Schools Project, Series A, 6.63%, 7/01/20

 

 

2,610

 

 

2,040,185

 

Pima County IDA, RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project, Series C,
6.70%, 7/01/21

 

 

970

 

 

975,655

 

Charter Schools, Series K, 6.38%, 7/01/13 (a)

 

 

820

 

 

939,671

 

Charter Schools, Series K, 6.38%, 7/01/31

 

 

930

 

 

934,185

 

Pima County IDA, Refunding RB, Tucson Electric Power
Co., San Juan, Series A, 4.95%, 10/01/20

 

 

2,325

 

 

2,459,431

 

Salt River Project Agricultural Improvement & Power
District, RB, Series A, 5.00%, 1/01/25

 

 

4,000

 

 

4,436,360

 

Scottsdale IDA, RB, Scottsdale Healthcare, Series C
(AGC), 5.00%, 9/01/35

 

 

7,710

 

 

7,835,365

 

State of Arizona, COP, Department of Administration,
Series A (AGM), 4.25%, 10/01/23

 

 

2,750

 

 

2,847,047

 

 

 

 

 

 




 

 

 

 

 

 

31,118,663

 









California — 16.7%

 

 

 

 

 

 

 

Antelope Valley Healthcare District California, RB,
Series A, 5.25%, 9/01/17

 

 

8,000

 

 

7,939,600

 

California HFA, RB, Home Mortgage, Series K, AMT,
4.55%, 8/01/21

 

 

3,805

 

 

3,638,874

 

California HFA, Refunding RB, Home Mortgage,
Series M, AMT, 4.55%, 8/01/21

 

 

7,210

 

 

6,895,211

 

California Pollution Control Financing Authority,
RB, AMT:

 

 

 

 

 

 

 

Republic Services Inc. Project, Series B, Mandatory
Put Bonds, 5.25%, 6/01/23 (b)

 

 

605

 

 

649,328

 

Waste Management Inc. Project, Series A-2,
5.40%, 4/01/25

 

 

1,240

 

 

1,284,677

 

California Pollution Control Financing Authority,
Refunding RB, Pacific Gas, Series C, AMT (FGIC),
4.75%, 12/01/23

 

 

9,035

 

 

9,036,175

 

California State Public Works Board, RB, Department of
Corrections, Series C, 5.50%, 6/01/20

 

 

10,000

 

 

10,481,500

 

California Statewide Communities Development
Authority, RB, Health Facility, Memorial Health Services,
Series A, 6.00%, 10/01/23

 

 

2,500

 

 

2,636,725

 

City of Sacramento California, Special Tax Bonds, North
Natomas Community Facilities, Series 4-C:

 

 

 

 

 

 

 

5.75%, 9/01/22

 

 

1,715

 

 

1,743,143

 

6.00%, 9/01/28

 

 

2,990

 

 

3,028,481

 

Golden State Tobacco Securitization Corp. California,
Refunding RB, Asset-Backed, Senior Series A-1,
5.00%, 6/01/15

 

 

5,000

 

 

5,254,600

 

Los Angeles Regional Airports Improvement Corp.
California, Refunding RB, Facilities, LAXFUEL Corp., LA
International, AMT (AMBAC), 5.50%, 1/01/32

 

 

1,435

 

 

1,441,501

 

Rowland Unified School District California, GO, Election
of 2000, Series B (AGM), 5.25%, 8/01/27

 

 

1,515

 

 

1,569,858

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 

State of California, GO:

 

 

 

 

 

 

 

5.50%, 4/01/14 (a)

 

$

14,795

 

$

17,129,503

 

5.50%, 4/01/28

 

 

15

 

 

15,883

 

(NPFGC), 5.25%, 2/01/27

 

 

5,000

 

 

5,165,750

 

Refunding (AMBAC), 4.50%, 8/01/28

 

 

3,000

 

 

2,917,530

 

Various Purpose, 5.25%, 10/01/21

 

 

2,550

 

 

2,835,651

 

Various Purpose, 6.00%, 11/01/39

 

 

10,000

 

 

11,202,800

 

Tustin Unified School District California, Special Tax
Bonds, Senior Lien, Community Facilities District 97-1,
Series A (AGM), 5.00%, 9/01/32

 

 

2,610

 

 

2,639,049

 

 

 

 

 

 




 

 

 

 

 

 

97,505,839

 









Colorado — 2.0%

 

 

 

 

 

 

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee, Series A, 7.10%, 9/01/14

 

 

600

 

 

612,366

 

Montrose Memorial Hospital, RB, 6.38%, 12/01/23

 

 

2,250

 

 

2,322,045

 

Plaza Metropolitan District No. 1 Colorado, Tax Allocation
Bonds, Public Improvement Fee, Tax Increment,
7.50%, 12/01/15

 

 

7,500

 

 

7,765,875

 

Southlands Metropolitan District No. 1, GO, 6.75%,
12/01/14 (a)

 

 

930

 

 

1,068,895

 

 

 

 

 

 




 

 

 

 

 

 

11,769,181

 









Connecticut — 0.2%

 

 

 

 

 

 

 

Connecticut State Development Authority, RB, Learjet Inc.
Project, AMT, 7.95%, 4/01/26

 

 

1,160

 

 

1,244,065

 









Florida — 4.3%

 

 

 

 

 

 

 

County of Miami-Dade Florida, Refunding RB, Series C
(BHAC), 5.00%, 10/01/23

 

 

8,000

 

 

8,806,320

 

Harbor Bay Community Development District Florida,
Special Assessment Bonds, 6.75%, 5/01/34

 

 

2,770

 

 

2,189,491

 

Highlands County Health Facilities Authority, Refunding
RB, Adventist Health, Series G, 5.13%, 11/15/16 (a)

 

 

35

 

 

41,976

 

Midtown Miami Community Development District,
Special Assessment Bonds:

 

 

 

 

 

 

 

Series A, 6.00%, 5/01/24

 

 

3,190

 

 

3,160,907

 

Series B, 6.50%, 5/01/37

 

 

1,925

 

 

1,932,142

 

Panther Trace II Community Development District,
Special Assessment Bonds, Special Assessment,
5.13%, 11/01/13

 

 

1,960

 

 

1,733,738

 

Portofino Shores Community Development District,
Special Assessment Bonds, Series A, 6.40%,
5/01/34

 

 

1,085

 

 

1,090,045

 

South Lake County Hospital District, RB, South Lake
Hospital Inc., 6.63%, 10/01/23

 

 

2,390

 

 

2,478,286

 

Sterling Hill Community Development District, Special
Assessment Bonds, Refunding, Series B, 5.50%,
11/01/10 (c)(d)

 

 

160

 

 

123,184

 

University of Florida Research Foundation Inc., RB
(AMBAC), 5.13%, 9/01/33

 

 

4,000

 

 

3,831,040

 

 

 

 

 

 




 

 

 

 

 

 

25,387,129

 









Georgia — 1.3%

 

 

 

 

 

 

 

Fulton County Development Authority, Refunding RB,
Robert Woodruff, Series B, 5.25%, 3/15/24

 

 

4,000

 

 

4,367,640

 

Medical Center Hospital Authority, Refunding RB,
Columbus Regional Healthcare (AGM):

 

 

 

 

 

 

 

4.00%, 8/01/23

 

 

1,500

 

 

1,497,990

 

4.13%, 8/01/24

 

 

2,000

 

 

1,988,060

 

 

 

 

 

 




 

 

 

 

 

 

7,853,690

 









Guam — 0.8%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A, 6.00%, 11/15/19

 

 

1,530

 

 

1,635,601

 

Territory of Guam, RB, Section 30, Series A, 5.38%,
12/01/24

 

 

2,620

 

 

2,731,743

 

 

 

 

 

 




 

 

 

 

 

 

4,367,344

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

41




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









Idaho — 0.7%

 

 

 

 

 

 

 

Idaho Health Facilities Authority, RB, St. Luke’s Regional
Medical Center (AGM), 4.63%, 7/01/30

 

$

3,700

 

$

3,682,277

 

University of Idaho, RB, General, Series B, 5.00%,
4/01/32

 

 

400

 

 

423,716

 

 

 

 

 

 




 

 

 

 

 

 

4,105,993

 









Illinois — 7.9%

 

 

 

 

 

 

 

City of Chicago Illinois, ARB, General, 3rd Lien,
Series B-2, AMT:

 

 

 

 

 

 

 

(AGM), 5.75%, 1/01/23

 

 

8,130

 

 

8,532,110

 

(Syncora), 6.00%, 1/01/29

 

 

7,510

 

 

7,848,025

 

City of Chicago Illinois, Refunding ARB, General, 3rd Lien,
Series A-2, AMT (AGM), 5.75%, 1/01/19

 

 

2,550

 

 

2,729,418

 

Du Page & Will Counties Community School District
No. 204 Indian, GO, School Building, Series A (NPFGC),
5.25%, 12/30/22

 

 

8,650

 

 

9,707,030

 

Du Page County Forest Preservation District Illinois, GO,
Refunding, Series A, 3.50%, 11/01/24

 

 

3,000

 

 

2,952,600

 

Illinois Finance Authority, RB, Community Rehabilitation
Providers Facilities, Series A, 6.63%, 7/01/12 (a)

 

 

6,930

 

 

6,792,647

 

Village of Hodgkins Illinois, RB, MBM Project, AMT,
5.90%, 11/01/17

 

 

6,000

 

 

6,004,860

 

Village of Wheeling Illinois, Tax Allocation Bonds, North
Milwaukee/Lake-Cook TIF Project, 6.00%, 1/01/25

 

 

1,560

 

 

1,474,512

 

 

 

 

 

 




 

 

 

 

 

 

46,041,202

 









Indiana — 0.4%

 

 

 

 

 

 

 

County of Jasper Indiana, Refunding RB, Northern
Indiana Public Service Co., Series C (NPFGC),
5.85%, 4/01/19

 

 

2,000

 

 

2,260,920

 









Iowa — 0.6%

 

 

 

 

 

 

 

Iowa Higher Education Loan Authority, Refunding RB,
Private College Facility:

 

 

 

 

 

 

 

5.00%, 9/01/20

 

 

1,000

 

 

1,038,530

 

5.00%, 9/01/22

 

 

2,315

 

 

2,352,642

 

 

 

 

 

 




 

 

 

 

 

 

3,391,172

 









Kansas — 1.5%

 

 

 

 

 

 

 

City of Dodge City Kansas, RB (AGC), 4.00%, 6/01/24

 

 

2,245

 

 

2,310,442

 

Kansas Development Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Adventist Health, 5.00%, 11/15/23

 

 

1,500

 

 

1,659,645

 

Adventist/Sunbelt, Series D, 5.00%, 11/15/24

 

 

1,000

 

 

1,081,240

 

Sisters of Leavenworth, Series A, 4.00%, 1/01/22

 

 

3,775

 

 

3,821,168

 

 

 

 

 

 




 

 

 

 

 

 

8,872,495

 









Kentucky — 3.1%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 5.25%, 6/01/23

 

 

8,650

 

 

8,895,054

 

Kentucky State Property & Buildings Commission,
Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/24

 

 

8,000

 

 

9,024,560

 

 

 

 

 

 




 

 

 

 

 

 

17,919,614

 









Louisiana — 3.2%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority, RB (NPFGC):

 

 

 

 

 

 

 

Nineteenth Judicial District Court, 5.50%, 6/01/41

 

 

2,000

 

 

2,093,120

 

University of New Orleans Research & Technology,
5.25%, 3/01/26

 

 

6,965

 

 

7,310,394

 

Louisiana Public Facilities Authority, Refunding RB,
Entergy Gulf States Louisiana, LLC Project, Series A,
5.00%, 9/01/28

 

 

5,000

 

 

5,059,600

 

New Orleans Aviation Board Louisiana, Refunding GARB,
Restructuring, Series A-2 (AGC), 6.00%, 1/01/23

 

 

850

 

 

979,617

 

Port of New Orleans Louisiana, Refunding RB,
Continental Grain Co. Project, 6.50%, 1/01/17

 

 

3,500

 

 

3,500,595

 

 

 

 

 

 




 

 

 

 

 

 

18,943,326

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









Maine — 0.3%

 

 

 

 

 

 

 

Portland New Public Housing Authority Maine, Refunding
RB, Senior Living, Series A, 6.00%, 2/01/34

 

$

1,965

 

$

1,970,915

 









Maryland — 0.5%

 

 

 

 

 

 

 

Maryland EDC, RB, Transportation Facilities Project,
Series A, 5.13%, 6/01/20

 

 

1,750

 

 

1,827,420

 

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc.,
5.75%, 9/01/25

 

 

790

 

 

806,590

 

Maryland Industrial Development Financing Authority,
RB, Our Lady of Good Counsel School, Series A,
6.00%, 5/01/35

 

 

500

 

 

496,195

 

 

 

 

 

 




 

 

 

 

 

 

3,130,205

 









Massachusetts — 0.7%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB,
Ogden Haverhill Project, Series B, AMT:

 

 

 

 

 

 

 

5.35%, 12/01/15

 

 

1,210

 

 

1,211,428

 

5.50%, 12/01/19

 

 

2,000

 

 

2,002,360

 

Massachusetts Health & Educational Facilities Authority,
RB, Winchester Hospital, 5.00%, 7/01/25

 

 

1,060

 

 

1,066,392

 

 

 

 

 

 




 

 

 

 

 

 

4,280,180

 









Michigan — 4.2%

 

 

 

 

 

 

 

City of Detroit Michigan, Refunding RB, Second Lien,
Series C (BHAC), 5.75%, 7/01/26

 

 

4,235

 

 

4,670,231

 

Kalamazoo Hospital Finance Authority, Refunding RB,
Bronson Methodist Hospital, 4.25%, 5/15/25

 

 

2,120

 

 

2,027,377

 

Michigan State Hospital Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Hospital, Henry Ford Health, 5.25%, 11/15/24

 

 

4,900

 

 

5,063,758

 

Hospital, Oakwood Obligation Group, Series A,
6.00%, 4/01/22

 

 

4,795

 

 

4,937,603

 

Wayne County Airport Authority, RB, Detroit Metropolitan
Wayne County Airport, AMT (AGC), 4.75%, 12/01/18

 

 

7,665

 

 

7,920,628

 

 

 

 

 

 




 

 

 

 

 

 

24,619,597

 









Minnesota — 1.7%

 

 

 

 

 

 

 

City of St. Cloud Minnesota, RB, CentraCare Health
System, Series A, 4.25%, 5/01/21

 

 

2,300

 

 

2,346,920

 

Minneapolis & St. Paul Housing & Redevelopment
Authority, RB, HealthPartners Obligation Group Project:

 

 

 

 

 

 

 

6.00%, 12/01/19

 

 

1,000

 

 

1,050,470

 

6.00%, 12/01/21

 

 

2,545

 

 

2,652,348

 

Minnesota Higher Education Facilities Authority, RB,
St. Olaf College, Series 7-F, 4.50%, 10/01/30

 

 

2,000

 

 

2,048,700

 

Minnesota State Municipal Power Agency, RB, Series A,
5.25%, 10/01/24

 

 

2,000

 

 

2,114,400

 

 

 

 

 

 




 

 

 

 

 

 

10,212,838

 









Mississippi — 1.6%

 

 

 

 

 

 

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project:

 

 

 

 

 

 

 

5.88%, 4/01/22

 

 

5,000

 

 

5,025,000

 

5.90%, 5/01/22

 

 

3,110

 

 

3,125,550

 

Mississippi Hospital Equipment & Facilities Authority,
Refunding RB, Baptist Memorial Healthcare, Series B2,
4.50%, 9/01/23

 

 

1,120

 

 

1,169,784

 

 

 

 

 

 




 

 

 

 

 

 

9,320,334

 









Missouri — 1.4%

 

 

 

 

 

 

 

Missouri State Health & Educational Facilities Authority,
RB, SSM Health Care, Series B, 4.25%, 6/01/25

 

 

8,125

 

 

8,194,875

 









Montana — 0.5%

 

 

 

 

 

 

 

Montana Facility Finance Authority, Refunding RB,
Series B, 5.00%, 1/01/24

 

 

2,625

 

 

2,892,540

 


 

 

 

See Notes to Financial Statements.




42

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









Nebraska — 1.5%

 

 

 

 

 

 

 

Douglas County Hospital Authority No. 2, RB, Health
Facilities, Immanuel Obligation Group, 5.50%,
1/01/30

 

$

500

 

$

520,415

 

Douglas County School District No. 17 Nebraska,
GO, Refunding:

 

 

 

 

 

 

 

2.00%, 6/15/24

 

 

4,390

 

 

3,636,939

 

2.00%, 6/15/25

 

 

4,480

 

 

3,634,445

 

Lancaster County Hospital Authority No. 1, RB,
Immanuel Obligation Group, 5.50%, 1/01/30

 

 

1,000

 

 

1,038,590

 

 

 

 

 

 




 

 

 

 

 

 

8,830,389

 









Nevada — 1.0%

 

 

 

 

 

 

 

County of Clark Nevada, Special Assessment Bonds,
Special Improvement District No. 142, Local
Improvement, 6.38%, 8/01/23

 

 

2,110

 

 

2,058,579

 

County of Humboldt Nevada, Refunding RB, Idaho
Power Co. Project, 5.15%, 12/01/24

 

 

3,800

 

 

4,045,974

 

 

 

 

 

 




 

 

 

 

 

 

6,104,553

 









New Jersey — 11.5%

 

 

 

 

 

 

 

Garden State Preservation Trust, RB, Election of 2005,
Series A (AGM):

 

 

 

 

 

 

 

5.80%, 11/01/21

 

 

3,635

 

 

4,320,706

 

5.80%, 11/01/23

 

 

5,050

 

 

5,946,526

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

 

9,810

 

 

9,655,100

 

Continental Airlines Inc. Project, AMT, 6.63%,
9/15/12

 

 

5,540

 

 

5,614,845

 

Motor Vehicle Surcharge, Series A (NPFGC),
5.25%, 7/01/33

 

 

17,900

 

 

18,446,308

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

New Jersey American Water Co., Series E, AMT,
4.70%, 12/01/25 (e)

 

 

3,250

 

 

3,223,513

 

School Facilities Construction, Series AA,
4.25%, 12/15/24

 

 

5,000

 

 

5,130,650

 

New Jersey Health Care Facilities Financing Authority,
Refunding RB, Hackensack University Medical,
Series B (AGM), 4.00%, 1/01/24

 

 

1,000

 

 

981,070

 

New Jersey Higher Education Assistance Authority,
Refunding RB, Series 1A, 4.75%, 12/01/21

 

 

2,400

 

 

2,503,968

 

New Jersey State Housing & Mortgage Finance Agency,
RB, S/F Housing, Series X, AMT, 5.10%, 10/01/23

 

 

4,500

 

 

4,691,520

 

New Jersey Transportation Trust Fund Authority, RB, CAB,
Transportation System, Series C (AMBAC), 5.71%,
12/15/25 (f)

 

 

9,450

 

 

4,437,437

 

South Jersey Port Corp., RB, Marine Terminal, Series O-1
(AGC), 4.63%, 1/01/23

 

 

1,375

 

 

1,480,518

 

University of Medicine & Dentistry of New Jersey, RB,
Series A (AMBAC), 5.50%, 12/01/23

 

 

1,000

 

 

1,025,100

 

 

 

 

 

 




 

 

 

 

 

 

67,457,261

 









New Mexico — 1.9%

 

 

 

 

 

 

 

New Mexico Finance Authority, RB, Senior Lien, Series A
(NPFGC), 5.13%, 6/15/14 (a)

 

 

9,520

 

 

10,928,389

 









New York — 24.4%

 

 

 

 

 

 

 

City of New York New York, GO:

 

 

 

 

 

 

 

Series D1, 5.13%, 12/01/26

 

 

4,615

 

 

5,021,628

 

Sub-Series I-1, 5.50%, 4/01/21

 

 

5,000

 

 

5,865,150

 

Dutchess County Industrial Development Agency
New York, RB, St. Francis Hospital, Series B,
7.25%, 3/01/19

 

 

895

 

 

915,272

 

Long Island Power Authority, Refunding RB, Series A,
5.50%, 4/01/24

 

 

1,475

 

 

1,665,570

 

Metropolitan Transportation Authority, RB, Transportation,
Series A, 5.00%, 11/15/25

 

 

1,980

 

 

2,118,244

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 

Metropolitan Transportation Authority, Refunding RB:

 

 

 

 

 

 

 

Series A, 5.13%, 1/01/29

 

$

8,000

 

$

8,253,360

 

Series B, 5.25%, 11/15/25

 

 

4,000

 

 

4,505,560

 

Monroe County Industrial Development Corp., RB,
Unity Hospital of Rochester Project (FHA), 4.20%,
8/15/25 (e)

 

 

1,345

 

 

1,352,814

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

Continental Airlines Inc. Project, Mandatory Put
Bonds, AMT, 8.38%, 11/01/16

 

 

3,500

 

 

3,549,560

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

Special Needs Facilities Pooled Program,
Series C-1, 6.80%, 7/01/19

 

 

2,055

 

 

2,072,509

 

New York City Industrial Development Agency, Refunding
RB, New York Stock Exchange Project, Series A,
4.25%, 5/01/24

 

 

2,740

 

 

2,826,885

 

New York City Transitional Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2007, Series S-1 (NPFGC), 5.00%, 7/15/24

 

 

500

 

 

539,315

 

Fiscal 2009, Series S-3, 5.00%, 1/15/23

 

 

3,560

 

 

3,871,536

 

New York Liberty Development Corp., Refunding RB,
Second Priority, Bank of America Tower at One Bryant
Park Project, 5.63%, 7/15/47

 

 

4,000

 

 

4,167,400

 

New York State Dormitory Authority, LRB, Municipal
Health Facilities, Sub-Series 2-4, 5.00%, 1/15/27

 

 

6,900

 

 

7,253,073

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Interagency Council Pooled, Series A-1, 4.25%,
7/01/25

 

 

405

 

 

411,087

 

Mental Health Services Facilities Improvement,
Series A (AGM), 5.00%, 2/15/22

 

 

4,000

 

 

4,412,600

 

Mount Sinai School of Medicine, Series A (NPFGC),
5.15%, 7/01/24

 

 

1,000

 

 

1,063,210

 

North Shore-Long Island Jewish Health System,
Series A, 5.50%, 5/01/30

 

 

1,495

 

 

1,581,276

 

University of Rochester, Series A, 4.00%, 7/01/24

 

 

1,515

 

 

1,571,752

 

University of Rochester, Series C, 4.00%, 7/01/24

 

 

625

 

 

648,888

 

New York State Dormitory Authority, Refunding RB:

 

 

 

 

 

 

 

Mount Sinai Hospital, Series A, 4.25%, 7/01/23

 

 

4,575

 

 

4,601,855

 

North Shore-Long Island Jewish Health System,
Series E, 5.00%, 5/01/22

 

 

650

 

 

690,358

 

North Shore-Long Island Jewish Health System,
Series E, 5.00%, 5/01/23

 

 

2,160

 

 

2,281,414

 

Yeshiva University, 4.00%, 9/01/23

 

 

2,860

 

 

2,978,862

 

Yeshiva University, 4.25%, 9/01/24

 

 

2,750

 

 

2,882,055

 

New York State Environmental Facilities Corp., RB,
Environment, Series A (FGIC), 5.25%, 12/15/14 (a)

 

 

7,380

 

 

8,668,031

 

New York State Urban Development Corp., Refunding
RB, Service Contract, Series B, 5.00%, 1/01/21

 

 

8,000

 

 

8,932,080

 

Port Authority of New York & New Jersey, Refunding RB:

 

 

 

 

 

 

 

Consolidated, 152nd Series, AMT, 5.00%,
11/01/23

 

 

2,500

 

 

2,634,525

 

Consolidated, 153rd Series, 5.00%, 7/15/24

 

 

2,010

 

 

2,265,511

 

Sales Tax Asset Receivable Corp., RB, Series A (NPFGC),
5.00%, 10/15/20

 

 

9,070

 

 

10,103,164

 

Tobacco Settlement Financing Corp. New York, RB,
Asset-Backed:

 

 

 

 

 

 

 

Series A-1 (AMBAC), 5.25%, 6/01/22

 

 

6,510

 

 

6,983,407

 

Series B-1C, 5.50%, 6/01/21

 

 

7,000

 

 

7,574,420

 

Series B-1C, 5.50%, 6/01/22

 

 

10,000

 

 

10,797,500

 

Trust for Cultural Resources, RB, Carnegie Hall, Series A,
5.00%, 12/01/29

 

 

4,250

 

 

4,544,312

 

United Nations Development Corp. New York, Refunding
RB, Series A, 4.25%, 7/01/24

 

 

2,985

 

 

3,057,804

 

 

 

 

 

 




 

 

 

 

 

 

142,661,987

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

43




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









North Carolina — 0.8%

 

 

 

 

 

 

 

Gaston County Industrial Facilities & Pollution Control
Financing Authority North Carolina, RB, Exempt
Facilities, National Gypsum Co. Project, AMT, 5.75%,
8/01/35

 

$

3,105

 

$

2,571,157

 

North Carolina Eastern Municipal Power Agency,
Refunding RB, Series B, 5.00%, 1/01/26

 

 

1,925

 

 

2,056,574

 

 

 

 

 

 




 

 

 

 

 

 

4,627,731

 









Northern Mariana Islands — 0.8%

 

 

 

 

 

 

 

Commonwealth of the Northern Mariana Islands,
GO, Series A:

 

 

 

 

 

 

 

6.75%, 10/01/13 (a)

 

 

3,800

 

 

4,451,738

 

6.75%, 10/01/33

 

 

250

 

 

247,453

 

 

 

 

 

 




 

 

 

 

 

 

4,699,191

 









Pennsylvania — 7.9%

 

 

 

 

 

 

 

City of Philadelphia Pennsylvania, RB, Series A, AMT
(AGM), 5.00%, 6/15/20

 

 

2,895

 

 

3,065,921

 

City of Philadelphia Pennsylvania, Refunding RB,
Series B, AMT (AGM), 5.00%, 6/15/19

 

 

3,905

 

 

4,176,163

 

City of Pittsburgh Pennsylvania, GO, Refunding,
Series B (AGM), 5.25%, 9/01/17

 

 

9,630

 

 

10,842,609

 

City of Pittsburgh Pennsylvania, GO, Series C (AGM),
5.25%, 9/01/18

 

 

6,430

 

 

7,143,666

 

Montgomery County IDA Pennsylvania, MRB, Whitemarsh
Continuing Care, 6.00%, 2/01/21

 

 

3,500

 

 

3,380,195

 

Montgomery County IDA Pennsylvania, RB, New Regional
Medical Center Project (FHA), 5.00%, 8/01/24

 

 

3,500

 

 

3,704,750

 

Pennsylvania Economic Development Financing
Authority, RB, National Gypsum Co., Series A, AMT,
6.25%, 11/01/27

 

 

7,710

 

 

6,880,481

 

South Fork Municipal Authority, RB, Conemaugh Valley
Memorial, Series A (AGC), 6.00%, 7/01/26

 

 

6,225

 

 

6,955,504

 

 

 

 

 

 




 

 

 

 

 

 

46,149,289

 









Puerto Rico — 12.3%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Public
Improvement, Series A (NPFGC), 5.50%, 7/01/21

 

 

3,290

 

 

3,579,290

 

Puerto Rico Aqueduct & Sewer Authority, RB, Senior
Lien, Series A (AGC), 5.00%, 7/01/25

 

 

3,215

 

 

3,427,608

 

Puerto Rico Electric Power Authority, RB:

 

 

 

 

 

 

 

Series CCC, 4.25%, 7/01/23

 

 

2,360

 

 

2,373,853

 

Series NN, 5.50%, 7/01/13 (a)

 

 

5,000

 

 

5,642,750

 

Series TT, 5.00%, 7/01/27

 

 

8,500

 

 

8,791,635

 

Series WW, 5.50%, 7/01/38

 

 

3,000

 

 

3,152,880

 

Puerto Rico Highway & Transportation Authority, RB:

 

 

 

 

 

 

 

Series Y (AGM), 6.25%, 7/01/21

 

 

3,000

 

 

3,415,950

 

Subordinate (FGIC), 5.75%, 7/01/21

 

 

4,375

 

 

4,512,069

 

Puerto Rico Housing Finance Authority, Refunding RB,
Subordinate, Capital Fund Modernization, 5.13%,
12/01/27

 

 

13,900

 

 

14,236,658

 

Puerto Rico Industrial Medical & Environmental
Pollution Control Facilities Financing Authority, RB,
Special Facilities, American Airlines, Series A,
6.45%, 12/01/25

 

 

5,390

 

 

5,066,869

 

Puerto Rico Public Buildings Authority, RB, Government
Facilities, Series I, 5.50%, 7/01/14 (a)

 

 

8,000

 

 

9,282,160

 

Puerto Rico Public Buildings Authority, Refunding RB,
Government Facilities:

 

 

 

 

 

 

 

Series D, 5.25%, 7/01/27

 

 

3,930

 

 

3,956,567

 

Series M-3 (NPFGC), 6.00%, 7/01/28

 

 

1,900

 

 

2,049,796

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 5.75%, 8/01/37

 

 

2,000

 

 

2,171,580

 

 

 

 

 

 




 

 

 

 

 

 

71,659,665

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









Rhode Island — 0.5%

 

 

 

 

 

 

 

Rhode Island Health & Educational Building Corp., RB,
University of Rhode Island, Series A (AGC),
4.75%, 9/15/24

 

$

2,500

 

$

2,683,300

 









South Carolina — 0.2%

 

 

 

 

 

 

 

County of Florence South Carolina, RB, McLeod Regional
Medical Center, Series A, 4.50%, 11/01/25

 

 

1,000

 

 

1,004,240

 









South Dakota — 0.4%

 

 

 

 

 

 

 

Educational Enhancement Funding Corp., RB, Series B,
6.50%, 6/01/32

 

 

2,200

 

 

2,253,350

 









Tennessee — 2.1%

 

 

 

 

 

 

 

Chattanooga-Hamilton County Hospital Authority
Tennessee, Refunding RB, Erlanger Health (AGM),
5.00%, 10/01/22

 

 

1,620

 

 

1,726,110

 

Johnson City Health & Educational Facilities Board, RB,
Appalachian Christian Village Project, Series A,
6.00%, 2/15/19

 

 

1,660

 

 

1,659,984

 

Memphis-Shelby County Sports Authority Inc.,
Refunding RB, Memphis Arena Project:

 

 

 

 

 

 

 

Series A, 5.00%, 11/01/23

 

 

2,695

 

 

2,936,903

 

Series B, 5.00%, 11/01/22

 

 

1,000

 

 

1,096,390

 

Shelby County Health Educational & Housing Facilities
Board, RB, Germantown Village, Series A:

 

 

 

 

 

 

 

6.75%, 12/01/18

 

 

3,550

 

 

3,425,679

 

7.00%, 12/01/23

 

 

1,450

 

 

1,377,355

 

 

 

 

 

 




 

 

 

 

 

 

12,222,421

 









Texas — 3.4%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, TXU Electric Co.
Project, Series C, Mandatory Put Bonds, AMT,
5.75%, 5/01/36 (b)

 

 

6,770

 

 

6,431,500

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., RB, Series 2001-A-1, AMT,
6.15%, 1/01/16

 

 

4,000

 

 

4,001,880

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., Refunding RB, Series A,
Sub-Series 2, Mandatory Put Bonds, AMT, 9.00%,
5/01/29 (b)

 

 

3,000

 

 

3,154,230

 

Gulf Coast IDA, RB, Citgo Petroleum Corp. Project,
Mandatory Put Bonds, AMT, 7.50%, 5/01/25 (b)

 

 

2,440

 

 

2,495,144

 

Gulf Coast Waste Disposal Authority, Refunding RB,
Series A, AMT, 6.10%, 8/01/24

 

 

2,000

 

 

2,026,960

 

Houston Health Facilities Development Corp., RB,
Buckingham Senior Living Community, Series A,
7.00%, 2/15/14 (a)

 

 

1,500

 

 

1,791,615

 

 

 

 

 

 




 

 

 

 

 

 

19,901,329

 









U.S. Virgin Islands — 1.5%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT, 6.50%,
7/01/21

 

 

1,860

 

 

1,892,271

 

Virgin Islands Public Finance Authority, RB, Senior
Secured, Hovensa Refinery, AMT, 6.13%, 7/01/22

 

 

6,750

 

 

6,837,413

 

 

 

 

 

 




 

 

 

 

 

 

8,729,684

 









Virginia — 3.2%

 

 

 

 

 

 

 

James City County EDA, Refunding RB, First Mortgage,
Williamsburg Lodge, Series A:

 

 

 

 

 

 

 

5.75%, 3/01/17

 

 

3,285

 

 

3,352,310

 

6.00%, 3/01/23

 

 

1,150

 

 

1,164,616

 

Roanoke Economic Development Authority, Refunding
RB, Carilion Health System, Series B (AGM),
5.00%, 7/01/38

 

 

4,705

 

 

4,824,413

 

Tobacco Settlement Financing Corp. Virginia, RB,
Asset-Backed, 5.63%, 6/01/15 (a)

 

 

7,800

 

 

9,294,090

 

 

 

 

 

 




 

 

 

 

 

 

18,635,429

 










 

 

 

See Notes to Financial Statements.




44

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









West Virginia — 0.7%

 

 

 

 

 

 

 

West Virginia Hospital Finance Authority, Refunding RB,
Charleston, Series A, 5.13%, 9/01/23

 

$

4,000

 

$

4,251,480

 









Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Housing & EDA, RB, Series C, AMT,
4.85%, 9/01/26

 

 

2,000

 

 

2,026,800

 

 

 

 

 

 




Total Municipal Bonds — 136.2%

 

 

 

 

 

796,325,553

 









 

 

 

 

 

 

 

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

 

 

 

 

 

 









California — 4.9%

 

 

 

 

 

 

 

City of San Jose California, GO, Libraries, Parks, and
Public Safety Project (NPFGC), 5.00%, 9/01/30

 

 

3,101

 

 

3,253,191

 

Peralta Community College District, GO, Election of
2000, Series D (AGM), 5.00%, 8/01/30

 

 

10,140

 

 

10,570,139

 

Sequoia Union High School District California, GO,
Refunding, Election of 2004, Series B (AGM),
5.50%, 7/01/35

 

 

9,028

 

 

9,558,709

 

Tamalpais Union High School District California, GO,
Election of 2001 (AGM), 5.00%, 8/01/28

 

 

4,875

 

 

5,128,354

 

 

 

 

 

 




 

 

 

 

 

 

28,510,393

 









Illinois — 2.3%

 

 

 

 

 

 

 

McHenry County Conservation District Illinois, GO
(AGM), 5.13%, 2/01/27

 

 

12,695

 

 

13,683,827

 









Massachusetts — 1.5%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

8,338

 

 

8,824,040

 









Minnesota — 1.9%

 

 

 

 

 

 

 

State of Minnesota, GO, State Various Purpose, Series A,
4.00%, 8/01/29

 

 

10,525

 

 

10,842,004

 









New Jersey — 2.1%

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series D (AGM),
5.00%, 6/15/19

 

 

11,120

 

 

12,227,219

 









New York — 6.9%

 

 

 

 

 

 

 

City of New York New York, GO, Sub-Series B-1,
5.25%, 9/01/22

 

 

8,250

 

 

9,340,650

 

New York City Municipal Water Finance Authority,
Refunding RB, Series A, 4.75%, 6/15/30

 

 

8,000

 

 

8,436,480

 

New York State Urban Development Corp., RB, State
Personal Income Tax, State Facilities, Series A-1
(NPFGC), 5.25%, 3/15/34

 

 

10,000

 

 

10,461,600

 

Sales Tax Asset Receivable Corp., RB, Series A (AMBAC),
5.25%, 10/15/27

 

 

11,101

 

 

12,258,074

 

 

 

 

 

 




 

 

 

 

 

 

40,496,804

 









Washington — 1.9%

 

 

 

 

 

 

 

Snohomish County School District No. 15-Edmonds
Washington, GO (NPFGC), 5.00%, 12/01/19

 

 

10,000

 

 

11,308,500

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 21.5%

 

 

 

 

 

125,892,787

 









Total Long-Term Investments
(Cost — $883,491,937) — 157.7%

 

 

 

 

 

922,218,340

 










 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 









FFI Institutional Tax-Exempt Fund, 0.13% (h)(i)

 

 

10,237,333

 

$

10,237,333

 









Total Short-Term Securities
(Cost — $10,237,333) — 1.7%

 

 

 

 

 

10,237,333

 









Total Investments (Cost — $893,729,270*) — 159.4%

 

 

 

 

 

932,455,673

 

Other Assets Less Liabilities — 1.1%

 

 

 

 

 

6,202,963

 

Liability for Trust Certificates, Including

 

 

 

 

 

 

 

Interest Expense and Fees Payable — (11.4)%

 

 

 

 

 

(66,658,625

)

Preferred Shares, at Redemption Value — (49.1)%

 

 

 

 

 

(287,239,117

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

584,760,894

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

826,656,040

 

 

 

 

 

 



 

Gross unrealized appreciation

 

 

 

 

$

45,339,792

 

Gross unrealized depreciation

 

 

 

 

 

(6,148,971

)

 

 

 

 

 



 

Net unrealized appreciation

 

 

 

 

$

39,190,821

 

 

 

 

 

 



 


 

 

(a)

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.

 

 

(b)

Variable rate security. Rate shown is as of report date.

 

 

(c)

Non-income producing security.

 

 

(d)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(e)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 

Counterparty

 


Value

 

 

Unrealized
Appreciation
(Depreciation)

 








JPMorgan Securities

 

$

1,352,814

 

$

10,827

 

Morgan Stanley Co. Inc.

 

$

3,223,513

 

$

(26,487

)










 

 

(f)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(g)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(h)

Investments in companies considered to be an affiliate of the Fund during the period, 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,
2010

 

Net
Activity

 

Shares
Held at
October 31,
2010

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

17,541,876

 

 

(7,304,543

)

 

10,237,333

 

$

7,206

 
















 

 

(i)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

45




 

 


 

 

Schedule of Investments (concluded)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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 Fund’s own assumptions used in determining the fair value of investments) The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of October 31, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

922,218,340

 

 

 

$

922,218,340

 

Short-Term Securities

 

$

10,237,333

 

 

 

 

 

 

10,237,333

 

 

 



 



 



 



 

Total

 

$

10,237,333

 

$

922,218,340

 

 

 

$

932,455,673

 

 

 



 



 



 



 


 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

See Notes to Financial Statements.




46

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 



 

 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 1.0%

 

 

 

 

 

 

 

Prattville IDB Alabama, RB, International Paper Co.
Project, Series A, AMT, 4.75%, 12/01/30

 

$

3,500

 

$

3,151,540

 









Arizona — 2.6%

 

 

 

 

 

 

 

Maricopa County IDA Arizona, RB, Arizona Charter
Schools Project, Series A, 6.75%, 7/01/29

 

 

1,000

 

 

694,890

 

Maricopa County Pollution Control Corp., Refunding
RB, Southern California Edison Co., Series A, 5.00%,
6/01/35

 

 

1,705

 

 

1,742,732

 

Pima County IDA, RB, Arizona Charter Schools Project,
Series C, 6.75%, 7/01/31

 

 

1,920

 

 

1,927,065

 

Pima County IDA, Refunding IDRB, Tucson Electric
Power, 5.75%, 9/01/29

 

 

1,110

 

 

1,147,052

 

Pima County IDA, Refunding RB, Charter Schools II,
Series A, 6.75%, 7/01/21

 

 

475

 

 

477,931

 

Salt River Project Agricultural Improvement & Power
District, RB, Series A, 5.00%, 1/01/38

 

 

1,980

 

 

2,088,385

 

 

 

 

 

 




 

 

 

 

 

 

8,078,055

 









California — 13.4%

 

 

 

 

 

 

 

California Health Facilities Financing Authority,
Refunding RB, St. Joseph Health System, Series A,
5.75%, 7/01/39

 

 

2,200

 

 

2,338,644

 

California State Public Works Board, RB, Various Capital
Projects, Sub-Series I-1, 6.38%, 11/01/34

 

 

1,185

 

 

1,298,843

 

Los Angeles Department of Airports, RB, Series A,
5.25%, 5/15/39

 

 

800

 

 

843,664

 

Los Angeles Department of Airports, Refunding RB,
Senior, Los Angeles International Airport, Series A,
5.00%, 5/15/40

 

 

5,930

 

 

6,148,580

 

San Francisco City & County Public Utilities Commission,
RB, Series B, 5.00%, 11/01/39

 

 

9,475

 

 

10,038,478

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

2,525

 

 

2,900,316

 

6.50%, 4/01/33

 

 

14,925

 

 

17,546,875

 

 

 

 

 

 




 

 

 

 

 

 

41,115,400

 









Colorado — 3.9%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic Health
Initiatives, Series D, 6.25%, 10/01/33

 

 

1,060

 

 

1,192,341

 

Colorado Health Facilities Authority, Refunding RB,
Sisters of Leavenworth, Series A, 5.00%, 1/01/40

 

 

2,190

 

 

2,231,807

 

Colorado Housing & Finance Authority, Refunding RB,
S/F Program, Senior Series A-2, AMT, 7.50%, 4/01/31

 

 

95

 

 

100,145

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee:

 

 

 

 

 

 

 

Series A, 7.35%, 9/01/31

 

 

3,025

 

 

2,897,133

 

Series B, 7.45%, 9/01/31

 

 

400

 

 

386,948

 

Plaza Metropolitan District No. 1 Colorado, Tax Allocation
Bonds, Public Improvement Fee, Tax Increment:

 

 

 

 

 

 

 

8.00%, 12/01/25

 

 

3,300

 

 

3,447,741

 

Subordinate, 8.13%, 12/01/25

 

 

820

 

 

762,502

 

University of Colorado, RB, Series A, 5.75%, 6/01/28

 

 

750

 

 

868,200

 

 

 

 

 

 




 

 

 

 

 

 

11,886,817

 









Connecticut — 2.2%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit, 5.00%, 11/15/40

 

 

1,375

 

 

1,440,161

 

Wesleyan University, 5.00%, 7/01/35

 

 

3,385

 

 

3,659,761

 

Mohegan Tribe of Indians of Connecticut, RB, Public
Improvement, Priority Distribution, 6.25%, 1/01/31

 

 

2,000

 

 

1,656,460

 

 

 

 

 

 




 

 

 

 

 

 

6,756,382

 









Delaware — 1.3%

 

 

 

 

 

 

 

Delaware State EDA, RB, Exempt Facilities, Indian River
Power, 5.38%, 10/01/45

 

 

4,065

 

 

4,048,903

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









District of Columbia — 1.9%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, RB:

 

 

 

 

 

 

 

CAB, Second Senior Lien, Series B (AGC), 7.05%,
10/01/33 (a)

 

$

6,590

 

$

1,662,262

 

CAB, Second Senior Lien, Series B (AGC), 7.08%,
10/01/34 (a)

 

 

4,830

 

 

1,141,957

 

CAB, Second Senior Lien, Series B (AGC), 7.10%,
10/01/35 (a)

 

 

6,515

 

 

1,443,268

 

First Senior Lien, Series A, 5.25%, 10/01/44

 

 

1,500

 

 

1,582,995

 

 

 

 

 

 




 

 

 

 

 

 

5,830,482

 









Florida — 6.4%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB, Water & Sewer
System, 5.00%, 10/01/34

 

 

5,680

 

 

5,914,300

 

County of Miami-Dade Florida, Refunding RB, Miami
International Airport:

 

 

 

 

 

 

 

AMT (AGC), 5.00%, 10/01/40

 

 

4,975

 

 

4,951,817

 

Series A-1, 5.38%, 10/01/41

 

 

1,165

 

 

1,202,478

 

Fiddlers Creek Community Development District No. 2,
Special Assessment Bonds (b)(c):

 

 

 

 

 

 

 

Series A, 6.38%, 5/01/35

 

 

2,350

 

 

752,000

 

Series B, 5.75%, 5/01/13

 

 

400

 

 

128,000

 

Hillsborough County IDA, RB:

 

 

 

 

 

 

 

H. Lee Moffitt Cancer Center Project, Series A,
5.25%, 7/01/37

 

 

1,400

 

 

1,389,962

 

National Gypsum Co., Series B, AMT, 7.13%,
4/01/30

 

 

2,720

 

 

2,651,510

 

Midtown Miami Community Development District,
Special Assessment Bonds, Series A, 6.25%,
5/01/37

 

 

915

 

 

899,875

 

Palm Coast Park Community Development District,
Special Assessment Bonds, 5.70%, 5/01/37

 

 

1,225

 

 

764,804

 

Preserve at Wilderness Lake Community Development
District, RB, Series A, 7.10%, 5/01/33

 

 

875

 

 

882,744

 

 

 

 

 

 




 

 

 

 

 

 

19,537,490

 









Georgia — 4.9%

 

 

 

 

 

 

 

De Kalb Private Hospital Authority, Refunding RB,
Children’s Healthcare, 5.25%, 11/15/39

 

 

845

 

 

889,075

 

Fulton County Residential Care Facilities for the Elderly
Authority, Refunding RB, Canterbury Court Project,
Series A, 6.13%, 2/15/26

 

 

2,000

 

 

1,896,620

 

Metropolitan Atlanta Rapid Transit Authority, RB, Third
Series, 5.00%, 7/01/39

 

 

3,465

 

 

3,716,628

 

Municipal Electric Authority of Georgia, RB, Series W:

 

 

 

 

 

 

 

6.60%, 1/01/18

 

 

5,560

 

 

6,536,837

 

6.60%, 1/01/18 (d)

 

 

380

 

 

431,171

 

Municipal Electric Authority of Georgia, Refunding RB,
Series X, 6.50%, 1/01/20

 

 

1,205

 

 

1,453,037

 

 

 

 

 

 




 

 

 

 

 

 

14,923,368

 









Guam — 0.5%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

630

 

 

673,483

 

6.75%, 11/15/29

 

 

895

 

 

991,338

 

7.00%, 11/15/39

 

 

615

 

 

689,052

 

 

 

 

 

 




 

 

 

 

 

 

2,353,873

 









Idaho — 0.00%

 

 

 

 

 

 

 

Idaho Housing & Finance Association, Refunding RB,
S/F Mortgage, Senior Series E-2, AMT, 6.90%,
1/01/27

 

 

15

 

 

15,030

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

47




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Illinois — 12.7%

 

 

 

 

 

 

 

City of Chicago Illinois, RB, Series C, AMT (Ginnie Mae),
7.00%, 3/01/32

 

$

125

 

$

125,040

 

City of Chicago Illinois, Special Assessment Bonds,
Lake Shore East, 6.75%, 12/01/32

 

 

800

 

 

785,536

 

City of Chicago Illinois, Tax Allocation Bonds, Kingsbury
Redevelopment Project, Series A, 6.57%, 2/15/13

 

 

900

 

 

900,351

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Advocate Health Care Network, Series D, 6.50%,
11/01/38

 

 

5,000

 

 

5,676,800

 

Community Rehabilitation Providers Facilities,
Series A, 6.50%, 7/01/22

 

 

1,000

 

 

999,880

 

Navistar International, Recovery Zone, 6.50%,
10/15/40

 

 

1,540

 

 

1,597,765

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Central DuPage Health, Series B, 5.50%,
11/01/39

 

 

1,610

 

 

1,709,756

 

Friendship Village Schaumburg, Series A, 5.63%,
2/15/37

 

 

250

 

 

206,250

 

Metropolitan Pier & Exposition Authority, Refunding
RB (AGM), McCormick Place Expansion Project:

 

 

 

 

 

 

 

CAB, Series B, 6.25%, 6/15/45 (a)

 

 

12,580

 

 

1,513,500

 

CAB, Series B, 6.25%, 6/15/46 (a)

 

 

6,400

 

 

721,792

 

Series B, 5.00%, 6/15/50

 

 

3,150

 

 

3,144,424

 

Series B-2, 5.00%, 6/15/50

 

 

2,500

 

 

2,461,675

 

Regional Transportation Authority, RB:

 

 

 

 

 

 

 

Series A (AMBAC), 7.20%, 11/01/20

 

 

1,500

 

 

1,857,300

 

Series A (NPFGC), 6.70%, 11/01/21

 

 

7,000

 

 

8,630,790

 

Series C (NPFGC), 7.75%, 6/01/20

 

 

2,500

 

 

3,253,450

 

State of Illinois, RB, Build Illinois, Series B, 5.25%,
6/15/34

 

 

630

 

 

659,314

 

Village of Hodgkins Illinois, RB, MBM Project, AMT,
6.00%, 11/01/23

 

 

2,800

 

 

2,802,268

 

Village of Wheeling Illinois, Tax Allocation Bonds, North
Milwaukee/Lake-Cook TIF Project, 6.00%, 1/01/25

 

 

1,550

 

 

1,465,060

 

 

 

 

 

 




 

 

 

 

 

 

38,510,951

 









Indiana — 6.1%

 

 

 

 

 

 

 

Indiana Finance Authority, RB, Sisters of St. Francis
Health, 5.25%, 11/01/39

 

 

840

 

 

874,852

 

Indiana Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit, Series B-5,
5.00%, 11/15/36

 

 

1,500

 

 

1,528,935

 

Parkview Health System, Series A, 5.75%, 5/01/31

 

 

3,295

 

 

3,473,853

 

Indiana Health & Educational Facilities Financing
Authority, RB, Clarian Health Obligation, Series A,
5.25%, 2/15/40

 

 

500

 

 

499,215

 

Indiana Transportation Finance Authority, RB, Series A:

 

 

 

 

 

 

 

7.25%, 6/01/15

 

 

160

 

 

165,955

 

6.80%, 12/01/16

 

 

3,775

 

 

4,306,595

 

Indianapolis Local Public Improvement Bond Bank,
Refunding RB, Series D, 6.75%, 2/01/14

 

 

7,450

 

 

8,056,355

 

 

 

 

 

 




 

 

 

 

 

 

18,905,760

 









Kansas — 0.6%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB,
Sisters of Leavenworth, Series A, 5.00%, 1/01/40

 

 

1,660

 

 

1,706,629

 









Kentucky — 0.3%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

 

1,010

 

 

1,070,479

 









Louisiana — 3.6%

 

 

 

 

 

 

 

Port of New Orleans Louisiana, Refunding RB,
Continental Grain Co. Project, 6.50%, 1/01/17

 

 

7,500

 

 

7,501,275

 

Sabine River Authority Louisiana, Refunding RB,
International Paper Co. Project, 6.20%, 2/01/25

 

 

3,600

 

 

3,646,404

 

 

 

 

 

 




 

 

 

 

 

 

11,147,679

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Maryland — 2.0%

 

 

 

 

 

 

 

County of Montgomery Maryland, GO, West Germantown
Development District, Senior Series A (Radian),
6.70%, 7/01/27

 

$

1,175

 

$

1,214,363

 

Maryland Community Development Administration,
Refunding RB, Residential, Series D, AMT, 4.90%,
9/01/42

 

 

1,500

 

 

1,501,515

 

Maryland EDC, RB, Transportation Facilities Project,
Series A, 5.75%, 6/01/35

 

 

435

 

 

453,196

 

Maryland EDC, Refunding RB, CNX Marine Terminals,
Inc., 5.75%, 9/01/25

 

 

830

 

 

847,430

 

Maryland Health & Higher Educational Facilities
Authority, RB:

 

 

 

 

 

 

 

King Farm Presbyterian Community, Series B,
5.00%, 1/01/17

 

 

875

 

 

855,426

 

University of Maryland Medical System, Series B
(NPFGC), 7.00%, 7/01/22

 

 

1,000

 

 

1,189,640

 

 

 

 

 

 




 

 

 

 

 

 

6,061,570

 









Massachusetts — 4.1%

 

 

 

 

 

 

 

Massachusetts HFA, HRB, Series A, AMT, 5.20%,
12/01/37

 

 

3,000

 

 

3,056,790

 

Massachusetts HFA, RB, S/F, Series 130, AMT,
5.00%, 12/01/32

 

 

2,720

 

 

2,738,333

 

Massachusetts HFA, Refunding HRB, AMT:

 

 

 

 

 

 

 

Series D, 4.85%, 6/01/40

 

 

2,770

 

 

2,693,963

 

Series F, 5.70%, 6/01/40

 

 

2,210

 

 

2,280,632

 

Massachusetts Health & Educational Facilities Authority,
Refunding RB, Partners Healthcare, Series J1,
5.00%, 7/01/39

 

 

1,805

 

 

1,856,045

 

 

 

 

 

 




 

 

 

 

 

 

12,625,763

 









Michigan — 6.9%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Senior Lien, Series B
(AGM), 7.50%, 7/01/33

 

 

910

 

 

1,108,908

 

Flint Hospital Building Authority Michigan, Refunding RB,
Hurley Medical Center (ACA), 6.00%, 7/01/20

 

 

2,695

 

 

2,688,855

 

Kalamazoo Hospital Finance Authority, Refunding RB,
Bronson Methodist Hospital, 5.50%, 5/15/36

 

 

1,380

 

 

1,413,934

 

Michigan State Hospital Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Henry Ford Health System, Series A, 5.25%,
11/15/46

 

 

7,050

 

 

7,036,182

 

McLaren Health Care, 5.75%, 5/15/38

 

 

8,560

 

 

9,008,544

 

 

 

 

 

 




 

 

 

 

 

 

21,256,423

 









Mississippi — 3.1%

 

 

 

 

 

 

 

County of Lowndes Mississippi, Refunding RB,
Weyerhaeuser Co. Project, Series A, 6.80%, 4/01/22

 

 

3,000

 

 

3,387,240

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project, 5.90%, 5/01/22

 

 

5,000

 

 

5,025,000

 

University of Southern Mississippi, RB, Campus
Facilities Improvements Project, 5.38%, 9/01/36

 

 

1,065

 

 

1,155,727

 

 

 

 

 

 




 

 

 

 

 

 

9,567,967

 









Montana — 0.8%

 

 

 

 

 

 

 

Montana Facility Finance Authority, Refunding RB,
Sisters of Leavenworth, Series A, 4.75%, 1/01/40

 

 

2,265

 

 

2,343,188

 









Nevada — 0.2%

 

 

 

 

 

 

 

County of Clark Nevada, Special Assessment Bonds,
Special Improvement District No. 142, Local
Improvement, 6.38%, 8/01/23

 

 

570

 

 

556,109

 










 

 

 

See Notes to Financial Statements.




48

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey — 2.8%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.50%, 6/15/24

 

$

2,420

 

$

2,422,444

 

Continental Airlines Inc. Project, AMT, 6.25%,
9/15/29

 

 

3,000

 

 

2,939,880

 

New Jersey Health Care Facilities Financing Authority,
RB, Pascack Valley Hospital Association, 6.63%,
7/01/36 (b)(c)

 

 

1,680

 

 

17

 

New Jersey State Housing & Mortgage Finance Agency,
RB, Series AA, 6.38%, 10/01/28

 

 

1,215

 

 

1,313,937

 

Tobacco Settlement Financing Corp. New Jersey,
Refunding RB, Series 1A, 4.50%, 6/01/23

 

 

2,160

 

 

2,021,501

 

 

 

 

 

 




 

 

 

 

 

 

8,697,779

 









New York — 7.9%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, RB, Series 2008C,
6.50%, 11/15/28

 

 

9,405

 

 

11,107,775

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

British Airways Plc Project, AMT, 7.63%, 12/01/32

 

 

1,920

 

 

1,967,040

 

Series C, 6.80%, 6/01/28

 

 

690

 

 

724,597

 

Special Needs Facilities Pooled Program, Series C-1,
6.50%, 7/01/17

 

 

890

 

 

887,090

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

6,700

 

 

7,251,611

 

New York Liberty Development Corp., Refunding RB,
Second Priority, Bank of America Tower at One
Bryant Park Project, 6.38%, 7/15/49

 

 

1,220

 

 

1,307,144

 

Westchester County Industrial Development Agency
New York, RB, Special Needs Facilities Pooled Program,
Series E-1, 6.50%, 7/01/17

 

 

1,000

 

 

996,730

 

 

 

 

 

 




 

 

 

 

 

 

24,241,987

 









North Carolina — 2.9%

 

 

 

 

 

 

 

Gaston County Industrial Facilities & Pollution Control
Financing Authority North Carolina, RB, Exempt
Facilities, National Gypsum Co. Project, AMT,
5.75%, 8/01/35

 

 

1,675

 

 

1,387,017

 

North Carolina Capital Facilities Finance Agency, RB,
Duke Energy Carolinas, Series B, 4.38%, 10/01/31

 

 

1,610

 

 

1,578,573

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Duke Energy Carolinas, Series A,
4.63%, 11/01/40

 

 

2,695

 

 

2,622,505

 

North Carolina Medical Care Commission, RB, Duke
University Health System, Series A, 5.00%, 6/01/42

 

 

1,400

 

 

1,457,456

 

North Carolina Medical Care Commission, Refunding
RB, Carolina Village Project, 6.00%, 4/01/38

 

 

2,000

 

 

1,750,900

 

 

 

 

 

 




 

 

 

 

 

 

8,796,451

 









Ohio — 0.9%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB,
Asset-Backed, Senior Series A-2, 6.50%, 6/01/47

 

 

3,250

 

 

2,717,520

 









Pennsylvania — 4.3%

 

 

 

 

 

 

 

Bucks County IDA, RB, Ann’s Choice Inc. Facility,
Series A, 6.13%, 1/01/25

 

 

880

 

 

888,342

 

Lancaster County Hospital Authority, RB, Brethren
Village Project, Series A, 6.50%, 7/01/40

 

 

2,000

 

 

1,989,340

 

Montgomery County IDA Pennsylvania, MRB,
Whitemarsh Continuing Care:

 

 

 

 

 

 

 

6.13%, 2/01/28

 

 

470

 

 

433,082

 

6.25%, 2/01/35

 

 

1,090

 

 

985,709

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

Aqua Pennsylvania Inc. Project, 5.00%, 11/15/40

 

 

1,890

 

 

1,948,193

 

National Gypsum Co., Series B, AMT, 6.13%,
11/01/27

 

 

2,000

 

 

1,760,800

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Pennsylvania (concluded)

 

 

 

 

 

 

 

Pennsylvania Turnpike Commission, RB, Sub-Series B,
5.25%, 6/01/39

 

$

3,915

 

$

4,070,034

 

Philadelphia Authority for Industrial Development, RB,
Commercial Development, AMT, 7.75%, 12/01/17

 

 

1,265

 

 

1,266,619

 

 

 

 

 

 




 

 

 

 

 

 

13,342,119

 









Puerto Rico — 2.7%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Public
Improvement, Series C, 6.00%, 7/01/39

 

 

2,990

 

 

3,286,369

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 6.50%, 8/01/44

 

 

4,255

 

 

4,898,101

 

 

 

 

 

 




 

 

 

 

 

 

8,184,470

 









Tennessee — 0.7%

 

 

 

 

 

 

 

Johnson City Health & Educational Facilities Board, RB,
Appalachian Christian Village Project, Series A,
6.00%, 2/15/24

 

 

1,000

 

 

989,080

 

Rutherford County Health & Educational Facilities
Board, RB, Ascension Health Senior Credit Group,
5.00%, 11/15/40

 

 

1,025

 

 

1,078,269

 

 

 

 

 

 




 

 

 

 

 

 

2,067,349

 









Texas — 9.4%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, Texas Utility Co.,
Series, AMT, 7.70%, 4/01/33

 

 

1,500

 

 

555,000

 

Brazos River Harbor Navigation District, Refunding RB,
Dow Chemical Co. Project, Series A7, AMT, 6.63%,
5/15/33

 

 

3,000

 

 

3,079,050

 

City of Dallas Texas, Refunding RB, 5.00%, 10/01/35

 

 

1,510

 

 

1,624,926

 

City of Houston Texas, RB, Special Facilities, Continental
Airlines, Series E, AMT, 6.75%, 7/01/21

 

 

4,820

 

 

4,839,714

 

Harris County Health Facilities Development Corp.,
Refunding RB, Memorial Hermann Healthcare System,
Series B, 7.25%, 12/01/35

 

 

2,000

 

 

2,296,260

 

North Texas Tollway Authority, Refunding RB, First Tier,
Series A, 6.25%, 1/01/39

 

 

7,000

 

 

7,738,710

 

Texas Private Activity Bond Surface Transportation Corp.,
RB, Senior Lien:

 

 

 

 

 

 

 

LBJ Infrastructure Group LLC, LBJ Freeway Managed
Lanes Project, 7.00%, 6/30/40

 

 

4,310

 

 

4,684,884

 

NTE Mobility Partners LLC, North Tarrant Express
Managed Lanes Project, 6.88%, 12/31/39

 

 

3,875

 

 

4,204,917

 

 

 

 

 

 




 

 

 

 

 

 

29,023,461

 









U.S. Virgin Islands — 2.0%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT, 6.50%,
7/01/21

 

 

6,000

 

 

6,104,100

 









Utah — 0.9%

 

 

 

 

 

 

 

City of Riverton Utah, RB, IHC Health Services Inc.,
5.00%, 8/15/41

 

 

2,780

 

 

2,890,088

 









Virginia — 1.8%

 

 

 

 

 

 

 

Fairfax County EDA, Refunding RB, Goodwin House Inc.:

 

 

 

 

 

 

 

5.13%, 10/01/37

 

 

1,000

 

 

997,780

 

5.13%, 10/01/42

 

 

3,440

 

 

3,394,592

 

Tobacco Settlement Financing Corp. Virginia, Refunding
RB, Senior Series B1, 5.00%, 6/01/47

 

 

1,405

 

 

986,394

 

 

 

 

 

 




 

 

 

 

 

 

5,378,766

 









Washington — 1.4%

 

 

 

 

 

 

 

Washington Health Care Facilities Authority, Refunding
RB, Catholic Health Initiatives, Series D, 6.38%,
10/01/36

 

 

3,700

 

 

4,181,555

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

49




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Wisconsin — 4.4%

 

 

 

 

 

 

 

State of Wisconsin, Refunding RB, Series A, 6.00%,
5/01/36

 

$

7,100

 

$

8,076,889

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit Group, 5.00%,
11/15/33

 

 

2,465

 

 

2,568,900

 

SynergyHealth Inc., 6.00%, 11/15/32

 

 

2,215

 

 

2,293,057

 

Wisconsin Housing & EDA, Refunding RB, Series A, AMT,
5.63%, 3/01/31

 

 

695

 

 

730,104

 

 

 

 

 

 




 

 

 

 

 

 

13,668,950

 









Total Municipal Bonds — 120.6%

 

 

 

 

 

370,744,453

 










 

 

 

 

 

 

 

 









 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 









California — 3.3%

 

 

 

 

 

 

 

Bay Area Toll Authority, Refunding RB, San Francisco
Bay Area, Series F-1, 5.63%, 4/01/44

 

 

3,271

 

 

3,629,988

 

California Educational Facilities Authority, RB, University
of Southern California, Series A, 5.25%, 10/01/39

 

 

2,610

 

 

2,825,873

 

Los Angeles Community College District California, GO,
Election of 2001, Series A (AGM), 5.00%, 8/01/32

 

 

2,290

 

 

2,402,141

 

San Diego Community College District California, GO,
Election of 2002, 5.25%, 8/01/33

 

 

1,077

 

 

1,167,928

 

 

 

 

 

 




 

 

 

 

 

 

10,025,930

 









Colorado — 0.8%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Refunding RB,
Catholic Healthcare, Series A, 5.50%, 7/01/34

 

 

2,129

 

 

2,293,508

 









Connecticut — 2.1%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility Authority,
RB, Yale University, Series Z-3, 5.05%, 7/01/42

 

 

6,000

 

 

6,416,160

 









Illinois — 1.5%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB, Second Lien
(AGM), 5.25%, 11/01/33

 

 

1,320

 

 

1,422,286

 

Illinois State Toll Highway Authority, RB, Series B,
5.50%, 1/01/33

 

 

2,999

 

 

3,242,510

 

 

 

 

 

 




 

 

 

 

 

 

4,664,796

 









Maryland — 0.8%

 

 

 

 

 

 

 

Maryland State Transportation Authority, RB,
Transportation Facility Project (AGM), 5.00%,
7/01/41

 

 

2,290

 

 

2,447,689

 









Massachusetts — 3.4%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

10,000

 

 

10,582,400

 









New Hampshire — 0.7%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
Refunding RB, Dartmouth College, 5.25%, 6/01/39

 

 

2,009

 

 

2,208,427

 









New York — 4.7%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Series DD, 5.00%, 6/15/37

 

 

6,299

 

 

6,679,610

 

Series FF-2, 5.50%, 6/15/40

 

 

1,575

 

 

1,777,297

 

New York State Dormitory Authority, ERB, Series F,
5.00%, 3/15/35

 

 

5,790

 

 

6,048,016

 

 

 

 

 

 




 

 

 

 

 

 

14,504,923

 









North Carolina — 2.1%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Duke University Project, Series A,
5.00%, 10/01/41

 

 

6,239

 

 

6,555,042

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 







Ohio — 5.7%

 

 

 

 

 

 

 

Ohio Higher Educational Facility Commission,
Refunding RB, Hospital, Cleveland Clinic Health,
Series A, 5.25%, 1/01/33

 

$

2,400

 

$

2,536,248

 

State of Ohio, Refunding RB, Cleveland Clinic Health,
Series A, 5.50%, 1/01/39

 

 

13,840

 

 

14,904,157

 

 

 

 

 

 




 

 

 

 

 

 

17,440,405

 









South Carolina — 1.8%

 

 

 

 

 

 

 

South Carolina State Public Service Authority, RB,
Santee Cooper, Series A, 5.50%, 1/01/38

 

 

4,995

 

 

5,545,699

 









Texas — 6.3%

 

 

 

 

 

 

 

Harris County Health Facilities Development Corp.,
Refunding RB, School Health Care System, Series B,
5.75%, 7/01/27 (d)

 

 

10,000

 

 

12,422,100

 

Texas Department of Housing & Community Affairs,
MRB, Series B, AMT (Ginnie Mae), 5.25%, 9/01/32

 

 

3,901

 

 

4,002,574

 

Texas State University Systems, Refunding RB (AGM),
5.00%, 3/15/30

 

 

2,743

 

 

2,869,474

 

 

 

 

 

 




 

 

 

 

 

 

19,294,148

 









Washington — 5.7%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit Authority,
RB, Series A:

 

 

 

 

 

 

 

5.00%, 11/01/36

 

 

4,000

 

 

4,194,940

 

(AGM), 5.00%, 11/01/32

 

 

7,693

 

 

8,116,214

 

Central Puget Sound Regional Transportation Authority,
Washington, RB, Series A, 5.00%, 11/01/34

 

 

5,000

 

 

5,243,675

 

 

 

 

 

 




 

 

 

 

 

 

17,554,829

 









Wisconsin — 0.9%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority,
Refunding RB, Froedtert & Community Health Inc.,
5.25%, 4/01/39

 

 

2,499

 

 

2,629,571

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 39.8%

 

 

 

 

 

122,163,527

 









Total Long-Term Investments
(Cost — $464,877,306) — 160.4%

 

 

 

 

 

492,907,980

 









 

 

 

 

 

 

 

 







Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.13% (f)(g)

 

 

137,942

 

 

137,942

 









Total Short-Term Securities
(Cost — $137,942) — 0.0%

 

 

 

 

 

137,942

 









Total Investments (Cost — $465,015,248*) — 160.4%

 

 

 

 

 

493,045,922

 

Other Assets Less Liabilities — 5.4%

 

 

 

 

 

16,705,502

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (20.3)%

 

 

 

 

 

(62,281,805

)

Preferred Shares, at Redemption Value — (45.5)%

 

 

 

 

 

(140,016,058

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

307,453,561

 

 

 

 

 

 













 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

402,599,350

 

 

 




Gross unrealized appreciation

 

$

35,010,761

 

Gross unrealized depreciation

 

 

(6,794,102

)

 

 




Net unrealized appreciation

 

$

28,216,659

 

 

 





 

 

(a)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(b)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(c)

Non-income producing security.

 

 

(d)

Security is collateralized by Municipal or US Treasury obligations.


 

 

 

See Notes to Financial Statements.




50

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniVest Fund II, Inc. (MVT)


 

 

(e)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(f)

Investments in companies considered to be an affiliate of the Fund during the period, 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,
2010

 

Net
Activity

 

Shares
Held at
October 31,
2010

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

552,231

 

 

(414,289

)

 

137,942

 

$

2,911

 
















 

 

(g)

Represents the current yield as of report date.

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:


 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

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 Fund’s own assumptions used in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of October 31, 2010 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

 

$

492,907,980

 

 

 

$

492,907,980

 

Short-Term
Securities

 

$

137,942

 

 

 

 

 

 

137,942

 

 

 













Total

 

$

137,942

 

$

492,907,980

 

 

 

$

493,045,922

 

 

 














 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

51




 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 31, 2010 (Unaudited)

 

BlackRock
Apex Municipal
Fund, Inc.
(APX)

 

BlackRock
MuniAssets
Fund, Inc.
(MUA)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Quality
Fund, Inc.
(MUS)

 

BlackRock
Muni Intermediate
Duration
Fund, Inc.
(MUI)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 



















Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Investments at value — unaffiliated1

 

$

189,891,103

 

$

275,698,362

 

$

525,610,107

 

$

346,635,990

 

$

252,449,342

 

$

282,351,917

 

$

922,218,340

 

$

492,907,980

 

Investments at value — affiliated2

 

 

998,663

 

 

2,949,596

 

 

6,417,821

 

 

967,139

 

 

1,177,035

 

 

10,941,587

 

 

10,237,333

 

 

137,942

 

Investments sold receivable

 

 

3,724,610

 

 

5,320,066

 

 

 

 

3,695,387

 

 

2,579,619

 

 

147,750

 

 

755,168

 

 

10,264,699

 

Interest receivable

 

 

3,605,313

 

 

5,051,997

 

 

7,696,630

 

 

5,654,413

 

 

3,947,187

 

 

4,150,374

 

 

13,950,360

 

 

8,493,567

 

Income receivable — affiliated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

370

 

 

 

Prepaid expenses

 

 

16,684

 

 

21,259

 

 

41,393

 

 

22,162

 

 

24,559

 

 

20,167

 

 

74,081

 

 

39,047

 

Other assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

101,700

 

 

 

 

 

























Total assets

 

 

198,236,373

 

 

289,041,280

 

 

539,765,951

 

 

356,975,091

 

 

260,177,742

 

 

297,611,795

 

 

947,337,352

 

 

511,843,235

 

 

 



















































Accrued Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Bank overdraft

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,590

 

 

 

Income dividends payable — Common Shares

 

 

879,588

 

 

1,323,533

 

 

1,677,113

 

 

1,241,076

 

 

901,472

 

 

957,137

 

 

2,719,498

 

 

1,821,327

 

Investment advisory fees payable

 

 

108,974

 

 

134,400

 

 

228,723

 

 

166,590

 

 

121,455

 

 

167,230

 

 

439,869

 

 

217,236

 

Interest expense and fees payable

 

 

4,502

 

 

6,751

 

 

60,285

 

 

32,102

 

 

25,344

 

 

23,336

 

 

49,813

 

 

51,892

 

Other affiliates payable

 

 

1,208

 

 

1,756

 

 

3,308

 

 

2,180

 

 

1,592

 

 

1,836

 

 

5,744

 

 

3,138

 

Officer’s and Directors’ fees payable

 

 

352

 

 

2,937

 

 

821

 

 

560

 

 

402

 

 

802

 

 

108,972

 

 

3,486

 

Investments purchased payable

 

 

 

 

 

 

1,631,643

 

 

 

 

 

 

 

 

5,340,307

 

 

 

Other accrued expenses payable

 

 

26,292

 

 

20,842

 

 

37,112

 

 

22,387

 

 

22,208

 

 

27,855

 

 

49,736

 

 

46,624

 

 

 

























Total accrued liabilities

 

 

1,020,916

 

 

1,490,219

 

 

3,639,005

 

 

1,464,895

 

 

1,072,473

 

 

1,178,196

 

 

8,728,529

 

 

2,143,703

 

 

 



















































Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Trust certificates3

 

 

7,285,446

 

 

10,755,646

 

 

61,582,907

 

 

43,487,622

 

 

33,617,184

 

 

31,815,414

 

 

66,608,812

 

 

62,229,913

 

 

 

























Total Liabilities

 

 

8,306,362

 

 

12,245,865

 

 

65,221,912

 

 

44,952,517

 

 

34,689,657

 

 

32,993,610

 

 

75,337,341

 

 

64,373,616

 

 

 



















































Preferred Shares at Redemption Value

 



























$25,000 per share liquidation preference, plus unpaid dividends4,5

 

 

 

 

 

 

142,601,192

 

 

83,705,999

 

 

55,054,000

 

 

87,004,682

 

 

287,239,117

 

 

140,016,058

 

Net Assets Applicable to
Common Shareholders

 

$

189,930,011

 

$

276,795,415

 

$

331,942,847

 

$

228,316,575

 

$

170,434,085

 

$

177,613,503

 

$

584,760,894

 

$

307,453,561

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Investments at cost — unaffiliated

 

$

186,374,178

 

$

270,850,753

 

$

505,115,498

 

$

332,204,086

 

$

240,530,777

 

$

270,162,093

 

$

883,491,937

 

$

464,877,306

 

 

 

























2 Investments at cost — affiliated

 

$

998,663

 

$

2,949,596

 

$

6,417,821

 

$

967,139

 

$

1,177,035

 

$

10,941,587

 

$

10,237,333

 

$

137,942

 

 

 

























3 Represents short-term floating rate certificates issued by tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Preferred Shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Par value $0.025 per share

 

 

 

 

 

 

4,575

 

 

 

 

 

 

 

 

 

 

 

 

 

























Par value $0.05 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,320

 

 

 

























Par value $0.10 per share

 

 

 

 

 

 

1,128

 

 

3,348

 

 

2,202

 

 

3,480

 

 

11,487

 

 

1,280

 

 

 

























5 Preferred Shares authorized

 

 

 

 

 

 

7,480

 

 

5,000

 

 

3,480

 

 

5,360

 

 

12,800

 

 

7,000

 

 

 


























 

 

 

See Notes to Financial Statements.


52

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 


 

Statements of Assets and Liabilities (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 31, 2010 (Unaudited)

 

BlackRock
Apex Municipal
Fund, Inc.
(APX)

 

BlackRock
MuniAssets
Fund, Inc.
(MUA)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Quality
Fund, Inc.
(MUS)

 

BlackRock
Muni Intermediate
Duration
Fund, Inc.
(MUI)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 



















Net Assets Applicable to Common Shareholders Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Paid-in capital6,7

 

$

194,551,693

 

$

296,473,229

 

$

315,005,419

 

$

207,692,862

 

$

153,941,127

 

$

174,213,484

 

$

540,501,506

 

$

281,315,446

 

Undistributed net investment income

 

 

1,676,187

 

 

1,081,133

 

 

5,633,582

 

 

4,159,425

 

 

3,535,638

 

 

3,306,259

 

 

10,017,068

 

 

5,667,271

 

Accumulated net realized gain (loss)

 

 

(9,814,794

)

 

(25,606,556

)

 

(9,190,763

)

 

2,032,384

 

 

1,038,755

 

 

(12,096,064

)

 

(4,484,083

)

 

(7,559,830

)

Net unrealized appreciation/depreciation

 

 

3,516,925

 

 

4,847,609

 

 

20,494,609

 

 

14,431,904

 

 

11,918,565

 

 

12,189,824

 

 

38,726,403

 

 

28,030,674

 

 

 

























Net Assets Applicable to Common Shareholders

 

$

189,930,011

 

$

276,795,415

 

$

331,942,847

 

$

228,316,575

 

$

170,434,085

 

$

177,613,503

 

$

584,760,894

 

$

307,453,561

 

 

 



















































Net Asset Value Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 



























Net asset value per share

 

$

9.50

 

$

13.07

 

$

11.29

 

$

16.37

 

$

15.22

 

$

13.73

 

$

15.37

 

$

14.94

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 Common shares outstanding, $0.10 par value

 

 

19,990,638

 

 

21,176,532

 

 

29,409,600

 

 

13,944,672

 

 

11,198,414

 

 

12,934,276

 

 

38,034,934

 

 

20,579,962

 

 

 

























7 Common Shares authorized

 

 

150 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

 


























 

 

 

 

See Notes to Financial Statements.


 

SEMI-ANNUAL REPORT

OCTOBER 31, 2010

53




 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
October 31, 2010 (Unaudited)

 

BlackRock
Apex Municipal
Fund, Inc.
(APX)

 

BlackRock
MuniAssets
Fund, Inc.
(MUA)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Quality
Fund, Inc.
(MUS)

 

BlackRock
Muni Intermediate
Duration
Fund, Inc.
(MUI)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 



















Investment Income





















Interest

 

$

6,318,030

 

$

9,143,900

 

$

12,533,793

 

$

9,230,707

 

$

6,725,117

 

$

6,825,857

 

$

21,940,486

 

$

13,546,959

 

Income — affiliated

 

 

993

 

 

1,248

 

 

5,978

 

 

2,341

 

 

916

 

 

8,749

 

 

10,882

 

 

2,911

 

 

 

























Total income

 

 

6,319,023

 

 

9,145,148

 

 

12,539,771

 

 

9,233,048

 

 

6,726,033

 

 

6,834,606

 

 

21,951,368

 

 

13,549,870

 

 

 



















































Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Investment advisory

 

 

628,621

 

 

773,922

 

 

1,325,666

 

 

961,350

 

 

700,801

 

 

806,899

 

 

2,538,466

 

 

1,256,562

 

Professional

 

 

23,765

 

 

25,630

 

 

41,935

 

 

37,776

 

 

30,594

 

 

30,838

 

 

44,214

 

 

39,420

 

Accounting services

 

 

18,217

 

 

26,767

 

 

43,503

 

 

30,300

 

 

24,435

 

 

27,119

 

 

70,189

 

 

44,775

 

Transfer agent

 

 

16,504

 

 

19,156

 

 

37,013

 

 

21,063

 

 

17,705

 

 

18,023

 

 

45,823

 

 

30,535

 

Officer and Directors

 

 

9,602

 

 

13,543

 

 

17,818

 

 

12,332

 

 

9,459

 

 

9,894

 

 

31,460

 

 

15,394

 

Custodian

 

 

9,067

 

 

9,461

 

 

13,773

 

 

10,070

 

 

7,852

 

 

8,508

 

 

22,211

 

 

13,234

 

Printing

 

 

5,873

 

 

9,513

 

 

14,033

 

 

9,444

 

 

7,067

 

 

8,171

 

 

26,476

 

 

14,205

 

Registration

 

 

4,530

 

 

4,844

 

 

4,986

 

 

4,643

 

 

4,780

 

 

4,789

 

 

6,819

 

 

8,466

 

Commissions for Preferred Shares

 

 

 

 

 

 

104,445

 

 

62,959

 

 

42,827

 

 

66,233

 

 

226,005

 

 

110,491

 

Miscellaneous

 

 

22,890

 

 

27,385

 

 

42,955

 

 

34,892

 

 

33,712

 

 

36,489

 

 

63,753

 

 

50,295

 

 

 

























Total expenses excluding interest expense and fees

 

 

739,069

 

 

910,221

 

 

1,646,127

 

 

1,184,829

 

 

879,232

 

 

1,016,963

 

 

3,075,416

 

 

1,583,377

 

Interest expense and fees1

 

 

33,431

 

 

49,336

 

 

229,795

 

 

163,925

 

 

125,483

 

 

119,808

 

 

244,366

 

 

228,374

 

 

 

























Total expenses

 

 

772,500

 

 

959,557

 

 

1,875,922

 

 

1,348,754

 

 

1,004,715

 

 

1,136,771

 

 

3,319,782

 

 

1,811,751

 

Less fees waived by advisor

 

 

(238

)

 

(294

)

 

(1,423

)

 

(540

)

 

(200

)

 

(69,119

)

 

(113,923

)

 

(686

)

 

 

























Total expenses after fees waived

 

 

772,262

 

 

959,263

 

 

1,874,499

 

 

1,348,214

 

 

1,004,515

 

 

1,067,652

 

 

3,205,859

 

 

1,811,065

 

 

 

























Net investment income

 

 

5,546,761

 

 

8,185,885

 

 

10,665,272

 

 

7,884,834

 

 

5,721,518

 

 

5,766,954

 

 

18,745,509

 

 

11,738,805

 

 

 



















































Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(355,779

)

 

(441,834

)

 

(92,354

)

 

847,374

 

 

1,002,944

 

 

776,686

 

 

3,286,442

 

 

482,492

 

Financial futures contracts

 

 

4,454

 

 

6,998

 

 

(170,354

)

 

5,726

 

 

4,453

 

 

8,271

 

 

 

 

(213,064

)

 

 

























 

 

 

(351,325

)

 

(434,836

)

 

(262,708

)

 

853,100

 

 

1,007,397

 

 

784,957

 

 

3,286,442

 

 

269,428

 

 

 

























Net change in unrealized appreciation/depreciation on investments

 

 

6,298,829

 

 

9,463,427

 

 

11,506,919

 

 

7,486,514

 

 

5,125,745

 

 

4,446,607

 

 

19,403,375

 

 

10,073,981

 

 

 

























Total realized and unrealized gain

 

 

5,947,504

 

 

9,028,591

 

 

11,244,211

 

 

8,339,614

 

 

6,133,142

 

 

5,231,564

 

 

22,689,817

 

 

10,343,409

 

 

 



















































Dividends to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Net investment income

 

 

 

 

 

 

(449,806

)

 

(229,485

)

 

(116,212

)

 

(182,778

)

 

(2,124,876

)

 

(463,494

)

 

 

























Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

11,494,265

 

$

17,214,476

 

$

21,459,677

 

$

15,994,963

 

$

11,738,448

 

$

10,815,740

 

$

39,310,450

 

$

21,618,720

 

 

 

























      1 Related to tender option bond trusts.

 

 

 

See Notes to Financial Statements.


54

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 


 

Statements of Changes in Net Assets


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Apex
Municipal Fund, Inc. (APX)

 

BlackRock MuniAssets
Fund, Inc. (MUA)

 

BlackRock
MuniEnhanced Fund, Inc. (MEN)

 

 

 


 


 


 

Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year Ended
April 30,
2010

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year Ended
April 30,
2010

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year Ended
April 30,
2010

 















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

5,546,761

 

$

11,440,748

 

$

8,185,885

 

$

16,818,625

 

$

10,665,272

 

$

22,103,824

 

Net realized loss

 

 

(351,325

)

 

(618,845

)

 

(434,836

)

 

(505,303

)

 

(262,708

)

 

(2,514,799

)

Net change in unrealized appreciation/depreciation

 

 

6,298,829

 

 

30,737,544

 

 

9,463,427

 

 

43,885,403

 

 

11,506,919

 

 

33,008,361

 

Dividends to Preferred Shareholders from net investment income

 

 

 

 

 

 

 

 

 

 

(449,806

)

 

(972,174

)

 

 






 






 







Net increase in net assets applicable to Common Shareholders resulting from operations

 

 

11,494,265

 

 

41,559,447

 

 

17,214,476

 

 

60,198,725

 

 

21,459,677

 

 

51,625,212

 

 

 






 






 



























Dividends to Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

 

(5,275,468

)

 

(11,310,084

)

 

(7,930,553

)

 

(17,164,842

)

 

(10,049,090

)

 

(18,620,500

)

 

 






 






 



























Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Reinvestment of common dividends

 

 

89,094

 

 

412,211

 

 

680,252

 

 

1,897,902

 

 

449,066

 

 

 

 

 






 






 



























Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total increase in net assets applicable to Common Shareholders

 

 

6,307,891

 

 

30,661,574

 

 

9,964,175

 

 

44,931,785

 

 

11,859,653

 

 

33,004,712

 

Beginning of period

 

 

183,622,120

 

 

152,960,546

 

 

266,831,240

 

 

221,899,455

 

 

320,083,194

 

 

287,078,482

 

 

 






 






 







End of period

 

$

189,930,011

 

$

183,622,120

 

$

276,795,415

 

$

266,831,240

 

$

331,942,847

 

$

320,083,194

 

 

 






 






 







Undistributed net investment income

 

$

1,676,187

 

$

1,404,894

 

$

1,081,133

 

$

825,801

 

$

5,633,582

 

$

5,467,206

 

 

 






 






 








 

 

 

 

See Notes to Financial Statements.


 

SEMI-ANNUAL REPORT

OCTOBER 31, 2010

55




 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
MuniHoldings Fund, Inc. (MHD)

 

BlackRock
MuniHoldings Fund II, Inc. (MUH)

 

BlackRock MuniHoldings
Quality Fund, Inc. (MUS)

 

 

 


 


 


 

Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year Ended
April 30,
2010

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year Ended
April 30,
2010

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year Ended
April 30,
2010

 















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

7,884,834

 

$

15,784,697

 

$

5,721,518

 

$

11,430,386

 

$

5,766,954

 

$

12,056,685

 

Net realized gain (loss)

 

 

853,100

 

 

983,601

 

 

1,007,397

 

 

848,274

 

 

784,957

 

 

(267,028

)

Net change in unrealized appreciation/depreciation

 

 

7,486,514

 

 

32,294,227

 

 

5,125,745

 

 

22,414,189

 

 

4,446,607

 

 

12,924,699

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(229,485

)

 

(478,200

)

 

(116,212

)

 

(252,975

)

 

(182,778

)

 

(395,183

)

Net realized gain

 

 

 

 

(21,023

)

 

 

 

 

 

 

 

 

 

 






 






 







Net increase in net assets applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

resulting from operations

 

 

15,994,963

 

 

48,563,302

 

 

11,738,448

 

 

34,439,874

 

 

10,815,740

 

 

24,319,173

 

 

 






 






 



























Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

 

(7,270,591

)

 

(13,840,853

)

 

(5,402,986

)

 

(10,095,056

)

 

(5,735,412

)

 

(10,496,334

)

Net realized gain

 

 

 

 

(323,547

)

 

 

 

 

 

 

 

 

 

 






 






 







Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(7,270,591

)

 

(14,164,400

)

 

(5,402,986

)

 

(10,095,056

)

 

(5,735,412

)

 

(10,496,334

)

 

 






 






 



























Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Reinvestment of common dividends and distributions

 

 

458,801

 

 

49,523

 

 

376,800

 

 

 

 

555,971

 

 

93,344

 

 

 






 






 



























Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total increase in net assets applicable to Common Shareholders

 

 

9,183,173

 

 

34,448,425

 

 

6,712,262

 

 

24,344,818

 

 

5,636,299

 

 

13,916,183

 

Beginning of period

 

 

219,133,402

 

 

184,684,977

 

 

163,721,823

 

 

139,377,005

 

 

171,977,204

 

 

158,061,021

 

 

 






 






 







End of period

 

$

228,316,575

 

$

219,133,402

 

$

170,434,085

 

$

163,721,823

 

$

177,613,503

 

$

171,977,204

 

 

 






 






 







Undistributed net investment income

 

$

4,159,425

 

$

3,774,667

 

$

3,535,638

 

$

3,333,318

 

$

3,306,259

 

$

3,457,495

 

 

 






 






 








 

 

 

See Notes to Financial Statements.


56

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 


 

Statements of Changes in Net Assets (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Muni Intermediate
Fund, Inc. (MUI)

 

BlackRock MuniVest
Fund II, Inc. (MVT)

 

 

 


 


 

Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year Ended
April 30,
2010

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year Ended
April 30,
2010

 











Operations

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

$

18,745,509

 

$

38,883,136

 

$

11,738,805

 

$

24,074,947

 

Net realized gain

 

 

3,286,442

 

 

735,933

 

 

269,428

 

 

1,639,858

 

Net change in unrealized appreciation/depreciation

 

 

19,403,375

 

 

59,229,788

 

 

10,073,981

 

 

45,862,257

 

Dividends to Preferred Shareholders from net investment income

 

 

(2,124,876

)

 

(4,345,317

)

 

(463,494

)

 

(992,540

)

 

 













Net increase in net assets applicable to Common Shareholders resulting from operations

 

 

39,310,450

 

 

94,503,540

 

 

21,618,720

 

 

70,584,522

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

 

(15,689,410

)

 

(29,610,196

)

 

(10,706,844

)

 

(20,330,657

)

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 















Reinvestment of common dividends

 

 

 

 

 

 

1,076,345

 

 

1,628,414

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 















Total increase in net assets applicable to Common Shareholders

 

 

23,621,040

 

 

64,893,344

 

 

11,988,221

 

 

51,882,279

 

Beginning of period

 

 

561,139,854

 

 

496,246,510

 

 

295,465,340

 

 

243,583,061

 

 

 













End of period

 

$

584,760,894

 

$

561,139,854

 

$

307,453,561

 

$

295,465,340

 

 

 













Undistributed net investment income

 

$

10,017,068

 

$

9,085,845

 

$

5,667,271

 

$

5,098,804

 

 

 














 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

57




 


 

Statements of Cash Flows


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended October 31, 2010 (Unaudited)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Quality
Fund, Inc.
(MUS)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 













Cash Provided by Operating Activities

 


















Net increase in net assets resulting from operations, excluding dividends to Preferred Shareholders

 

$

21,909,483

 

$

16,224,448

 

$

11,854,660

 

$

10,998,518

 

$

22,082,214

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in interest receivable

 

 

(300,587

)

 

199,497

 

 

118,518

 

 

75,612

 

 

292,173

 

Increase in investment advisory fees payable

 

 

1,480

 

 

2,218

 

 

1,618

 

 

49,730

 

 

2,495

 

Increase (decrease) in interest expense and fees payable

 

 

(9,643

)

 

(24

)

 

(430

)

 

(2,994

)

 

1,938

 

Increase in other affiliates payable

 

 

77

 

 

74

 

 

59

 

 

41

 

 

95

 

Decrease in accrued expenses payable

 

 

(28,648

)

 

(34,183

)

 

(25,173

)

 

(23,883

)

 

(32,591

)

Increase in Officer’s and Directors’ payable

 

 

88

 

 

81

 

 

50

 

 

207

 

 

2,479

 

Net realized and unrealized gain on investments

 

 

(11,407,502

)

 

(8,333,756

)

 

(6,131,296

)

 

(5,222,694

)

 

(10,556,473

)

Amortization of premium and accretion and discount on investments

 

 

(79,221

)

 

71,261

 

 

(159,909

)

 

298,551

 

 

55,116

 

Proceeds from sales of long-term investments

 

 

22,265,952

 

 

28,689,043

 

 

23,432,146

 

 

29,147,224

 

 

41,131,043

 

Purchases of long-term investments

 

 

(25,292,308

)

 

(34,407,970

)

 

(24,977,608

)

 

(27,532,708

)

 

(46,979,258

)

Net proceeds from sales (purchases) of short-term securities

 

 

789,602

 

 

2,387,515

 

 

(569,300

)

 

(2,287,921

)

 

414,289

 

 

 
















Cash provided by operating activities

 

$

7,848,773

 

$

4,798,204

 

$

3,543,335

 

$

5,499,683

 

$

6,413,520

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash Used for Financing Activities


















Cash receipts from trust certificates

 

 

3,728,311

 

 

3,779,156

 

 

2,747,390

 

 

1,060,000

 

 

8,859,565

 

Cash payments from trust certificates.

 

 

(1,540,000

)

 

(1,580,000

)

 

(1,150,000

)

 

(1,200,000

)

 

(5,225,167

)

Cash dividends paid to Common Shareholders

 

 

(9,596,994

)

 

(6,767,508

)

 

(5,024,163

)

 

(5,176,408

)

 

(9,572,729

)

Cash dividends paid to Preferred Shareholders

 

 

(440,090

)

 

(229,852

)

 

(116,562

)

 

(183,275

)

 

(475,189

)

 

 
















Cash used for financing activities

 

 

(7,848,773

)

 

(4,798,204

)

 

(3,543,335

)

 

(5,499,683

)

 

(6,413,520

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash

 

 

 

 

 

 

 

 

 

 












Net increase in cash

 

 

 

 

 

 

 

 

 

 

 

Cash at beginning of period

 

 

 

 

 

 

 

 

 

 

 

 

 
















Cash at end of period

 

 

 

 

 

 

 

 

 

 

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash paid during the period for interest

 

$

239,438

 

$

163,949

 

$

125,913

 

$

122,802

 

$

226,436

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Noncash Financing Activities


















Capital shares issued in reinvestment of dividends paid to Common Shareholders

 

$

449,066

 

$

458,801

 

$

376,800

 

$

555,971

 

$

1,076,345

 

 

 

















 

 

 

A Statement of Cash Flows is presented when a Fund has a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average total assets.


 

 

 

See Notes to Financial Statements.




58

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Financial Highlights

BlackRock Apex Municipal Fund, Inc. (APX)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year
Ended
April 30,
2010

 

Period
July 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30,

 

 

 

 

 

 


 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 













Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 













Net asset value, beginning of period

 

$

9.19

 

$

7.67

 

$

9.14

 

$

9.95

 

$

9.90

 

$

9.82

 

$

9.13

 

 

 






















Net investment income1

 

 

0.28

 

 

0.57

 

 

0.48

 

 

0.54

 

 

0.58

 

 

0.58

 

 

0.58

 

Net realized and unrealized gain (loss)

 

 

0.29

 

 

1.51

 

 

(1.48

)

 

(0.77

)

 

0.06

 

 

0.08

 

 

0.69

 

 

 






















Net increase (decrease) from investment operations

 

 

0.57

 

 

2.08

 

 

(1.00

)

 

(0.23

)

 

0.64

 

 

0.66

 

 

1.27

 

 

 






















Dividends from net investment income

 

 

(0.26

)

 

(0.56

)

 

(0.47

)

 

(0.58

)

 

(0.59

)

 

(0.58

)

 

(0.58

)

 

 






















Net asset value, end of period

 

$

9.50

 

$

9.19

 

$

7.67

 

$

9.14

 

$

9.95

 

$

9.90

 

$

9.82

 

 

 






















Market price, end of period

 

$

9.31

 

$

8.87

 

$

7.72

 

$

9.28

 

$

10.23

 

$

10.25

 

$

9.48

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

6.36

%3

 

27.99

%

 

(10.81

)%3

 

(2.40

)%

 

6.48

%

 

7.00

%

 

14.67

%

 

 






















Based on market price

 

 

7.99

%3

 

22.73

%

 

(11.58

)%3

 

(3.61

)%

 

5.73

%

 

14.76

%

 

22.36

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses

 

 

0.83

%4

 

0.84

%

 

0.91

%4

 

0.85

%

 

0.80

%

 

0.81

%

 

0.80

%

 

 






















Total expenses after fees waived

 

 

0.83

%4

 

0.84

%

 

0.91

%4

 

0.84

%

 

0.80

%

 

0.80

%

 

0.80

%

 

 






















Total expenses after fees waived and excluding interest expense and fees5

 

 

0.79

%4

 

0.80

%

 

0.84

%4

 

0.80

%

 

0.80

%

 

0.80

%

 

0.80

%

 

 






















Net investment income

 

 

5.96

%4

 

6.64

%

 

7.16

%4

 

5.64

%

 

5.75

%

 

5.83

%

 

6.11

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets, end of period (000)

 

$

189,930

 

$

183,622

 

$

152,961

 

$

181,656

 

$

196,826

 

$

194,646

 

$

192,475

 

 

 






















Portfolio turnover

 

 

9

%

 

46

%

 

20

%

 

25

%

 

22

%

 

19

%

 

22

%

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Annualized.

 

 

 

 

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

59




 

 


 

 

Financial Highlights

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year
Ended
April 30,
2010

 

Period
July 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended May 30,

 

 

 

 

 

 


 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 













Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 















Net asset value, beginning of period

 

$

12.63

 

$

10.59

 

$

12.79

 

$

13.87

 

$

13.65

 

$

13.40

 

$

12.36

 

 

 






















Net investment income1

 

 

0.40

 

 

0.80

 

 

0.72

 

 

0.78

 

 

0.82

 

 

0.81

 

 

0.81

 

Net realized and unrealized gain (loss)

 

 

0.42

 

 

2.06

 

 

(2.18

)

 

(1.04

)

 

0.24

 

 

0.27

 

 

1.04

 

 

 






















Net increase (decrease) from investment operations

 

 

0.82

 

 

2.86

 

 

(1.46

)

 

(0.26

)

 

1.06

 

 

1.08

 

 

1.85

 

Dividends and distributions from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.38

)

 

(0.82

)

 

(0.74

)

 

(0.82

)

 

(0.84

)

 

(0.83

)

 

(0.81

)

Net realized gain

 

 

 

 

 

 

 

 

(0.00

)2

 

 

 

 

 

 

 

 






















Total dividends and distributions

 

 

(0.38

)

 

(0.82

)

 

(0.74

)

 

(0.82

)

 

(0.84

)

 

(0.83

)

 

(0.81

)

 

 






















Net asset value, end of period

 

$

13.07

 

$

12.63

 

$

10.59

 

$

12.79

 

$

13.87

 

$

13.65

 

$

13.40

 

 

 






















Market price, end of period

 

$

12.99

 

$

12.65

 

$

10.91

 

$

13.35

 

$

15.29

 

$

14.13

 

$

13.27

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

6.54

%4

 

27.72

%

 

(11.29

)%4

 

(1.90

)%

 

7.72

%

 

8.31

%

 

15.65

%

 

 






















Based on market price

 

 

5.72

%4

 

24.17

%

 

(12.45

)%4

 

(7.12

)%

 

14.71

%

 

13.22

%

 

24.39

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses

 

 

0.71

%5

 

0.72

%

 

0.77

%5

 

0.70

%

 

0.68

%

 

0.68

%

 

0.67

%

 

 






















Total expenses after fees waived and paid indirectly

 

 

0.71

%5

 

0.72

%

 

0.76

%5

 

0.69

%

 

0.68

%

 

0.68

%

 

0.67

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees6

 

 

0.67

%5

 

0.67

%

 

0.70

%5

 

0.66

%

 

0.68

%

 

0.68

%

 

0.67

%

 

 






















Net investment income

 

 

6.05

%5

 

6.72

%

 

7.13

%5

 

5.81

%

 

5.91

%

 

5.97

%

 

6.30

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets, end of period (000)

 

$

276,795

 

$

266,831

 

$

221,899

 

$

266,913

 

$

287,367

 

$

280,793

 

$

273,382

 

 

 






















Portfolio turnover

 

 

9

%

 

44

%

 

23

%

 

23

%

 

25

%

 

17

%

 

20

%

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.




60

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Financial Highlights

BlackRock MuniEnhanced Fund, Inc. (MEN)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year
Ended
April 30,
2010

 

Period
July 1,
2009 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended January 31,

 

 

 

 

 

 


 

 

 

 

 

 

2009

 

2008

 

2007

 

2006

 













Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



















Net asset value, beginning of period

 

$

10.90

 

$

9.77

 

$

9.15

 

$

11.16

 

$

11.55

 

$

11.52

 

$

11.85

 

 

 






















Net investment income1

 

 

0.36

 

 

0.75

 

 

0.18

 

 

0.72

 

 

0.78

 

 

0.76

 

 

0.77

 

Net realized and unrealized gain (loss)

 

 

0.39

 

 

1.04

 

 

0.58

 

 

(2.02

)

 

(0.41

)

 

0.06

 

 

(0.22

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.03

)

 

(0.01

)

 

(0.19

)

 

(0.24

)

 

(0.22

)

 

(0.16

)

 

 






















Net increase (decrease) from investment operations

 

 

0.73

 

 

1.76

 

 

0.75

 

 

(1.49

)

 

0.13

 

 

0.60

 

 

0.39

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.34

)

 

(0.63

)

 

(0.13

)

 

(0.52

)

 

(0.52

)

 

(0.57

)

 

(0.72

)

 

 






















Net asset value, end of period

 

$

11.29

 

$

10.90

 

$

9.77

 

$

9.15

 

$

11.16

 

$

11.55

 

$

11.52

 

 

 






















Market price, end of period

 

$

11.26

 

$

10.81

 

$

8.88

 

$

8.31

 

$

10.66

 

$

10.77

 

$

11.03

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

6.81

%3

 

18.76

%

 

8.40

%3

 

(13.19

)%

 

1.44

%

 

5.66

%

 

3.63

%

 

 






















Based on market price

 

 

7.41

%3

 

29.59

%

 

8.48

%3

 

(17.46

)%

 

3.92

%

 

2.90

%

 

7.58

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 










Total expenses4

 

 

1.15

%5

 

1.20

%

 

1.46

%5

 

1.77

%

 

1.72

%

 

1.69

%

 

1.51

%

 

 






















Total expenses after fees waived and paid indirectly4

 

 

1.15

%5

 

1.20

%

 

1.45

%5

 

1.76

%

 

1.72

%

 

1.69

%

 

1.51

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.01

%5

 

1.04

%

 

1.22

%5

 

1.18

%

 

1.08

%

 

1.08

%

 

1.07

%

 

 






















Net investment income4

 

 

6.53

%5

 

7.17

%

 

7.72

%5

 

7.43

%

 

6.85

%

 

6.57

%

 

6.63

%

 

 






















Dividends to Preferred Shareholders

 

 

0.28

%5

 

0.32

%

 

0.56

%5

 

1.92

%

 

2.08

%

 

1.88

%

 

1.34

%

 

 






















Net investment income to Common Shareholders

 

 

6.25

%5

 

6.85

%

 

7.16

%5

 

5.51

%

 

4.77

%

 

4.69

%

 

5.29

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

331,943

 

$

320,083

 

$

287,078

 

$

268,689

 

$

327,711

 

$

339,237

 

$

338,450

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference,end of period (000)

 

$

142,575

 

$

142,575

 

$

158,850

 

$

158,850

 

$

187,000

 

$

187,000

 

$

187,000

 

 

 






















Portfolio turnover

 

 

4

%

 

23

%

 

6

%

 

24

%

 

18

%

 

31

%

 

22

%

 

 






















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

83,210

 

$

81,128

 

$

70,185

 

$

67,294

 

$

68,834

 

$

70,373

 

$

70,262

 

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

61




 

 


 

 

Financial Highlights

BlackRock MuniHoldings Fund, Inc. (MHD)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 

 


 

 

 

 

2010

 

2009

 

2008

 

2007

 

2006

 














Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

15.75

 

$

13.27

 

$

15.20

 

$

16.51

 

$

16.14

 

$

16.31

 

 

 



















Net investment income1

 

 

0.57

 

 

1.13

 

 

1.07

 

 

1.16

 

 

1.17

 

 

1.16

 

Net realized and unrealized gain (loss)

 

 

0.59

 

 

2.39

 

 

(1.94

)

 

(1.20

)

 

0.42

 

 

(0.00

)2

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.02

)

 

(0.03

)

 

(0.18

)

 

(0.31

)

 

(0.32

)

 

(0.23

)

Net realized gain

 

 

 

 

(0.00

)2

 

(0.01

)

 

(0.03

)

 

 

 

 

 

 



















Net increase (decrease) from investment operations

 

 

1.14

 

 

3.49

 

 

(1.06

)

 

(0.38

)

 

1.27

 

 

0.93

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.52

)

 

(0.99

)

 

(0.85

)

 

(0.85

)

 

(0.90

)

 

(1.08

)

Net realized gain

 

 

 

 

(0.02

)

 

(0.02

)

 

(0.08

)

 

 

 

 

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.52

)

 

(1.01

)

 

(0.87

)

 

(0.93

)

 

(0.90

)

 

(1.08

)

 

 



















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.02

)

 

 



















Net asset value, end of period

 

$

16.37

 

$

15.75

 

$

13.27

 

$

15.20

 

$

16.51

 

$

16.14

 

 

 



















Market price, end of period

 

$

16.68

 

$

15.70

 

$

11.97

 

$

14.77

 

$

16.49

 

$

16.20

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

7.36

%4

 

27.31

%

 

(6.24

)%

 

(2.08

)%

 

8.06

%

 

5.69

%

 

 



















Based on market price

 

 

9.74

%4

 

40.68

%

 

(12.97

)%

 

(4.74

)%

 

7.52

%

 

7.34

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 





















Total expenses5

 

 

1.21

%6

 

1.25

%

 

1.65

%

 

1.56

%

 

1.54

%

 

1.30

%

 

 



















Total expenses after fees waived and paid indirectly5

 

 

1.21

%6

 

1.25

%

 

1.64

%

 

1.56

%

 

1.54

%

 

1.30

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,7

 

 

1.06

%6

 

1.11

%

 

1.25

%

 

1.20

%

 

1.17

%

 

1.15

%

 

 



















Net investment income5

 

 

7.07

%6

 

7.67

%

 

7.98

%

 

7.27

%

 

7.14

%

 

7.15

%

 

 



















Dividends to Preferred Shareholders

 

 

0.20

%6

 

0.24

%

 

1.32

%

 

1.96

%

 

1.93

%

 

1.45

%

 

 



















Net investment income to Common Shareholders

 

 

6.87

%6

 

7.43

%

 

6.66

%

 

5.31

%

 

5.20

%

 

5.70

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

228,317

 

$

219,133

 

$

184,685

 

$

211,429

 

$

229,376

 

$

223,658

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

83,700

 

$

83,700

 

$

91,925

 

$

125,000

 

$

125,000

 

$

125,000

 

 

 



















Portfolio turnover

 

 

8

%

 

41

%

 

19

%

 

30

%

 

20

%

 

45

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

93,197

 

$

90,454

 

$

75,230

 

$

67,294

 

$

70,889

 

$

69,742

 

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

7

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.




62

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

 

Financial Highlights

BlackRock MuniHoldings Fund II, Inc. (MUH)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year
Ended
April 30,
2010

 

Period
August 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

 

 

 

 


 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 













Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

14.65

 

$

12.47

 

$

13.66

 

$

14.78

 

$

14.82

 

$

15.03

 

$

13.98

 

 

 






















Net investment income1

 

 

0.51

 

 

1.02

 

 

0.72

 

 

1.04

 

 

1.05

 

 

1.04

 

 

1.08

 

Net realized and unrealized gain (loss)

 

 

0.55

 

 

2.08

 

 

(1.22

)

 

(1.14

)

 

(0.05

)

 

(0.11

)

 

1.15

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.01

)

 

(0.02

)

 

(0.10

)

 

(0.26

)

 

(0.27

)

 

(0.23

)

 

(0.14

)

 

 






















Net increase (decrease) from investment operations

 

 

1.05

 

 

3.08

 

 

(0.60

)

 

(0.36

)

 

0.73

 

 

0.70

 

 

2.09

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.48

)

 

(0.90

)

 

(0.59

)

 

(0.76

)

 

(0.77

)

 

(0.91

)

 

(1.04

)

 

 






















Net asset value, end of period

 

$

15.22

 

$

14.65

 

$

12.47

 

$

13.66

 

$

14.78

 

$

14.82

 

$

15.03

 

 

 






















Market price, end of period

 

$

15.30

 

$

14.68

 

$

11.33

 

$

13.01

 

$

13.99

 

$

14.12

 

$

15.25

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

7.30

%3

 

25.71

%

 

(3.55

)%3

 

(2.30

)%

 

5.08

%

 

4.89

%

 

15.46

%

 

 






















Based on market price

 

 

7.64

%3

 

38.64

%

 

(7.99

)%3

 

(1.69

)%

 

4.39

%

 

(1.50

)%

 

21.04

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses4

 

 

1.21

%5

 

1.25

%

 

1.60

%5

 

1.55

%

 

1.63

%

 

1.44

%

 

1.27

%

 

 






















Total expenses after fees waived4

 

 

1.21

%5

 

1.25

%

 

1.60

%5

 

1.55

%

 

1.63

%

 

1.44

%

 

1.27

%

 

 






















Total expenses after fees waived and excluding interest expense and fees4,6

 

 

1.06

%5

 

1.10

%

 

1.22

%5

 

1.18

%

 

1.19

%

 

1.18

%

 

1.19

%

 

 






















Net investment income4

 

 

6.87

%5

 

7.41

%

 

7.84

%5

 

7.07

%

 

6.97

%

 

7.04

%

 

7.38

%

 

 






















Dividends to Preferred Shareholders

 

 

0.14

%5

 

0.16

%

 

1.07

%5

 

1.79

%

 

1.82

%

 

1.55

%

 

0.98

%

 

 






















Net investment income to Common Shareholders

 

 

6.73

%5

 

7.25

%

 

6.77

%5

 

5.28

%

 

5.15

%

 

5.49

%

 

6.41

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

170,434

 

$

163,722

 

$

139,377

 

$

152,633

 

$

165,185

 

$

165,565

 

$

167,588

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

55,050

 

$

55,050

 

$

61,000

 

$

61,000

 

$

87,000

 

$

87,000

 

$

87,000

 

 

 






















Portfolio turnover

 

 

8

%

 

41

%

 

19

%

 

28

%

 

15

%

 

49

%

 

38

%

 

 






















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

102,401

 

$

99,353

 

$

81,123

 

$

87,562

 

$

72,478

 

$

72,555

 

$

73,163

 

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2010

63




 

 


 

Financial Highlights

BlackRock MuniHoldings Quality Fund, Inc. (MUS)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 

 



 

 

 

2010

 

2009

 

2008

 

2007

 

2006

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

13.34

 

$

12.27

 

$

13.31

 

$

14.10

 

$

13.80

 

$

14.44

 

 

 



















Net investment income1

 

 

0.44

 

 

0.94

 

 

0.93

 

 

1.05

 

 

0.93

 

 

0.97

 

Net realized and unrealized gain (loss)

 

 

0.40

 

 

0.97

 

 

(1.20

)

 

(0.87

)

 

0.36

 

 

(0.50

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.01

)

 

(0.03

)

 

(0.19

)

 

(0.38

)

 

(0.36

)

 

(0.28

)

 

 



















Net increase (decrease) from investment operations

 

 

0.83

 

 

1.88

 

 

(0.46

)

 

(0.20

)

 

0.93

 

 

0.19

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.44

)

 

(0.81

)

 

(0.58

)

 

(0.59

)

 

(0.63

)

 

(0.83

)

 

 



















Net asset value, end of period

 

$

13.73

 

$

13.34

 

$

12.27

 

$

13.31

 

$

14.10

 

$

13.80

 

 

 



















Market price, end of period

 

$

14.09

 

$

13.40

 

$

10.87

 

$

11.97

 

$

13.13

 

$

13.10

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

6.32

%3

 

16.05

%

 

(2.52

)%

 

(0.95

)%

 

7.29

%

 

1.46

%

 

 



















Based on market price

 

 

8.62

%3

 

31.59

%

 

(3.97

)%

 

(4.34

)%

 

5.25

%

 

1.51

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.30

%5

 

1.36

%

 

1.88

%

 

1.64

%

 

1.67

%

 

1.65

%

 

 



















Total expenses after fees waived4

 

 

1.22

%5

 

1.20

%

 

1.65

%

 

1.51

%

 

1.56

%

 

1.54

%

 

 



















Total expenses after fees waived and excluding interest expense and fees4,6

 

 

1.08

%5

 

1.04

%

 

1.17

%

 

1.27

%

 

1.23

%

 

1.24

%

 

 



















Net investment income4

 

 

6.59

%5

 

7.23

%

 

7.69

%

 

7.72

%

 

6.62

%

 

6.87

%

 

 



















Dividends to Preferred Shareholders

 

 

0.21

%5

 

0.24

%

 

1.61

%

 

2.80

%

 

2.59

%

 

2.00

%

 

 



















Net investment income to Common Shareholders

 

 

6.38

%5

 

6.99

%

 

6.08

%

 

4.92

%

 

4.03

%

 

4.87

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

177,613

 

$

171,977

 

$

158,061

 

$

171,510

 

$

181,640

 

$

177,790

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

87,000

 

$

87,000

 

$

94,200

 

$

134,000

 

$

134,000

 

$

134,000

 

 

 



















Portfolio turnover

 

 

10

%

 

22

%

 

35

%

 

57

%

 

29

%

 

59

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

76,052

 

$

74,420

 

$

66,951

 

$

57,008

 

$

58,903

 

$

58,181

 

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.


64

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 

 


 

Financial Highlights

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

 

 

Period
June 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
April 30,
2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended May 31,

 

 

 

 

 

 



 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

14.75

 

$

13.05

 

$

14.45

 

$

15.10

 

$

15.07

 

$

15.51

 

$

14.52

 

 

 






















Net investment income1

 

 

0.49

 

 

1.02

 

 

0.89

 

 

1.04

 

 

1.03

 

 

1.04

 

 

1.02

 

Net realized and unrealized gain (loss)

 

 

0.60

 

 

1.57

 

 

(1.42

)

 

(0.63

)

 

0.18

 

 

(0.15

)

 

1.15

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.06

)

 

(0.11

)

 

(0.23

)

 

(0.33

)

 

(0.28

)

 

(0.21

)

 

(0.11

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.04

)

 

(0.04

)

 

(0.02

)

 

 






















Net increase (decrease) from investment operations

 

 

1.03

 

 

2.48

 

 

(0.76

)

 

0.08

 

 

0.89

 

 

0.64

 

 

2.04

 

 

 






















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






















Net investment income

 

 

(0.41

)

 

(0.78

)

 

(0.64

)

 

(0.73

)

 

(0.74

)

 

(0.84

)

 

(0.86

)

 

 






















Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.12

)

 

(0.23

)

 

(0.19

)

 

 






















Total dividends and distributions to Common Shareholders

 

 

(0.41

)

 

(0.78

)

 

(0.64

)

 

(0.73

)

 

(0.86

)

 

(1.07

)

 

(1.05

)

 

 






















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.01

)

 

 

 

 






















Net asset value, end of period

 

$

15.37

 

$

14.75

 

$

13.05

 

$

14.45

 

$

15.10

 

$

15.07

 

$

15.51

 

 

 






















Market price, end of period

 

$

15.32

 

$

14.13

 

$

11.77

 

$

13.70

 

$

14.85

 

$

14.52

 

$

13.94

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

7.11

%3

 

19.85

%

 

(4.56

)%3

 

0.86

%

 

6.14

%

 

4.71

%

 

15.36

%

 

 






















Based on market price

 

 

11.45

%3

 

27.29

%

 

(9.21

)%3

 

(2.76

)%

 

8.34

%

 

12.25

%

 

14.93

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses4

 

 

1.16

%5

 

1.20

%

 

1.44

%5

 

1.30

%

 

1.31

%

 

1.24

%

 

1.07

%

 

 






















Total expenses after fees waived and paid indirectly4

 

 

1.12

%5

 

1.10

%

 

1.25

%5

 

1.07

%

 

1.07

%

 

1.00

%

 

0.85

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.03

%5

 

1.01

%

 

1.02

%5

 

0.90

%

 

0.87

%

 

0.87

%

 

0.84

%

 

 






















Net investment income4

 

 

6.53

%5

 

7.22

%

 

7.46

%5

 

6.97

%

 

6.71

%

 

6.82

%

 

6.77

%

 

 






















Dividends to Preferred Shareholders

 

 

0.74

%5

 

0.81

%

 

1.94

%5

 

2.23

%

 

1.80

%

 

1.36

%

 

0.74

%

 

 






















Net investment income to Common Shareholders

 

 

5.79

%5

 

6.41

%

 

5.52

%5

 

4.74

%

 

4.91

%

 

5.46

%

 

6.03

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

584,761

 

$

561,140

 

$

496,247

 

$

549,415

 

$

574,225

 

$

573,034

 

$

589,802

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

287,175

 

$

287,175

 

$

287,175

 

$

320,000

 

$

320,000

 

$

320,000

 

$

285,000

 

 

 






















Portfolio turnover

 

 

10

%

 

29

%

 

13

%

 

14

%

 

12

%

 

49

%

 

54

%

 

 






















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

75,912

 

$

73,857

 

$

68,207

 

$

67,941

 

$

69,875

 

$

69,781

 

$

73,743

 

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.


SEMI-ANNUAL REPORT

OCTOBER 31, 2010

65




 

 


 

Financial Highlights

BlackRock MuniVest Fund II, Inc. (MVT)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2010
(Unaudited)

 

Year
Ended
April 30,
2010

 

Period
November 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 

 

 



 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

14.41

 

$

11.95

 

$

10.95

 

$

14.49

 

$

15.35

 

$

15.13

 

$

15.21

 

 

 






















Net investment income1

 

 

0.57

 

 

1.18

 

 

0.53

 

 

1.12

 

 

1.16

 

 

1.16

 

 

1.19

 

Net realized and unrealized gain (loss)

 

 

0.50

 

 

2.32

 

 

0.95

 

 

(3.49

)

 

(0.84

)

 

0.35

 

 

0.04

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.05

)

 

(0.05

)

 

(0.32

)

 

(0.32

)

 

(0.29

)

 

(0.18

)

 

 






















Net increase (decrease) from investment operations

 

 

1.05

 

 

3.45

 

 

1.43

 

 

(2.69

)

 

 

 

1.22

 

 

1.05

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.52

)

 

(0.99

)

 

(0.43

)

 

(0.85

)

 

(0.86

)

 

(1.00

)

 

(1.10

)

 

 






















Capital charge with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.03

)

 

 






















Net asset value, end of period

 

$

14.94

 

$

14.41

 

$

11.95

 

$

10.95

 

$

14.49

 

$

15.35

 

$

15.13

 

 

 






















Market price, end of period

 

$

15.38

 

$

14.94

 

$

11.65

 

$

9.75

 

$

13.91

 

$

16.29

 

$

15.40

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

7.40

%3

 

29.75

%

 

13.71

%3

 

(19.33

)%

 

(0.02

)%

 

8.36

%

 

6.88

%

 

 






















Based on market price

 

 

6.64

%3

 

37.99

%

 

24.49

%3

 

(25.18

)%

 

(9.56

)%

 

12.98

%

 

9.21

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses4

 

 

1.20

%5

 

1.25

%

 

1.51

%5

 

1.67

%

 

1.67

%

 

1.61

%

 

1.35

%

 

 






















Total expenses after fees waived and excluding interest expense and fees4,6

 

 

1.05

%5

 

1.10

%

 

1.26

%5

 

1.16

%

 

1.12

%

 

1.11

%

 

1.07

%

 

 






















Net investment income4

 

 

7.80

%5

 

8.72

%

 

9.77

%5

 

8.03

%

 

7.74

%

 

7.70

%

 

7.76

%

 

 






















Dividends to Preferred Shareholders

 

 

0.31

%5

 

0.36

%

 

0.95

%5

 

2.31

%

 

2.11

%

 

1.90

%

 

1.14

%

 

 






















Net investment income to Common Shareholders

 

 

7.49

%5

 

8.36

%

 

8.82

%5

 

5.72

%

 

5.63

%

 

5.80

%

 

6.62

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

307,454

 

$

295,465

 

$

243,583

 

$

223,210

 

$

293,836

 

$

309,975

 

$

303,701

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

140,000

 

$

140,000

 

$

150,800

 

$

150,800

 

$

175,000

 

$

175,000

 

$

175,000

 

 

 






















Portfolio turnover

 

 

8

%

 

30

%

 

9

%

 

49

%

 

43

%

 

60

%

 

64

%

 

 






















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

79,905

 

$

77,767

 

$

65,388

 

$

62,019

 

$

67,004

 

$

69,307

 

$

68,389

 

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.


66

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 


 

Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies:

BlackRock Apex Municipal Fund, Inc. (“APX”), BlackRock MuniAssets Fund, Inc. (“MUA”), BlackRock MuniEnhanced Fund, Inc. (“MEN”), BlackRock MuniHoldings Fund, Inc. (“MHD”), BlackRock MuniHoldings Fund II, Inc. (“MUH”), BlackRock MuniHoldings Quality Fund, Inc. (formerly BlackRock MuniHoldings Insured Fund, Inc.) (“MUS”), BlackRock Muni Intermediate Duration Fund, Inc. (“MUI”) and BlackRock MuniVest Fund II, Inc. (“MVT”) (collectively, the “Funds”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as non-diversified, closed-end management investment companies. The Funds are organized as Maryland corporations. The Funds’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Funds determine and make available for publication the net asset values of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Funds:

Reorganizations: On September 2, 2010, the Board of Directors (the “Board”) of APX and MUA approved the reorganization of APX into MUA with MUA being the surviving Fund (the “Reorganization”) and changes to certain investment guidelines on APX and MUA. On December 17, 2010, shareholders of MUA approved the Reorganization and changes to certain investment policies of the Fund, and shareholders of APX approved changes to certain investment policies. APX’s shareholder vote with regard to the Reorganization was adjourned to allow additional time to further solicit votes. Subject to approval from APX shareholders and customary closing conditions being satisfied, it is currently expected the Reorganization would be completed in the first quarter of 2011.

Valuation: The Funds fair value their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that each Fund might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Forward Commitments and When-Issued Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counter-party, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown on the Schedules of Investments, if any.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds leverage their assets through the use of tender option bond trusts (“TOBs”). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Fund has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Fund include the right of a Fund (1) to cause the holders of a proportional share of the short-term floating rate certificates to tender their certificates at par, including during instances of a rise in short-term interest rates, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to a Fund. The TOB may also be terminated without the consent of a Fund upon the occurrence of certain events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond or the inability to remarket the short-term floating rate certificates to third party investors. During the six months ended October 31, 2010, no TOBs have been terminated without the consent of the Funds.

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to a Fund, which typically invests the cash in additional municipal bonds. Each Fund’s transfer of the municipal bonds to a TOB is accounted for as a secured borrowing, therefore the municipal bonds deposited into a TOB are presented in the Funds’ Schedules of Investments and the proceeds from the issuance of the short-term floating rate certificates are shown as trust certificates in the Statements of Assets and Liabilities.

 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2010

67




 


 

Notes to Financial Statements (continued)

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Funds on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are shown as interest expense and fees in the Statements of Operations. The short-term floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At October 31, 2010, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for trust certificates and the range of interest rates on the liability for trust certificates were as follows:

 

 

 

 

 

 

 

 

 

 









 

 

Underlying
Municipal
Bonds
Transferred to
TOBs

 

Liability
for Trust
Certificates

 

Range of
Interest
Rates

 









APX

 

$

15,157,401

 

$

7,285,446

 

0.28% – 0.40

%

MUA

 

$

22,367,905

 

$

10,755,646

 

0.28% – 0.40

%

MEN

 

$

121,863,362

 

$

61,582,907

 

0.27% – 0.38

%

MHD

 

$

85,164,892

 

$

43,487,622

 

0.27% – 0.33

%

MUH

 

$

65,323,483

 

$

33,617,184

 

0.27% – 0.33

%

MUS

 

$

61,834,800

 

$

31,815,414

 

0.28% – 0.43

%

MUI

 

$

125,892,787

 

$

66,608,812

 

0.28% – 0.38

%

MVT

 

$

122,163,527

 

$

62,229,913

 

0.27% – 0.37

%

For the six months ended October 31, 2010, the Funds’ average trust certificates outstanding and the daily weighted average interest rate, including fees, were as follows:

 

 

 

 

 

 

 

 







 

 

Average Trust
Certificates
Outstanding

 

Daily Weighted
Average
Interest Rate

 







APX

 

$

7,285,446

 

0.92

%

 

MUA

 

$

10,755,646

 

0.92

%

 

MEN

 

$

61,445,281

 

0.75

%

 

MHD

 

$

43,269,861

 

0.76

%

 

MUH

 

$

33,455,917

 

0.75

%

 

MUS

 

$

31,820,909

 

0.76

%

 

MUI

 

$

62,348,264

 

0.79

%

 

MVT

 

$

62,216,318

 

0.74

%

 









Should short-term interest rates rise, the Funds’ investments in TOBs may adversely affect the Funds’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect the Funds’ net asset values per share.

Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Funds either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts) the Funds will, consistent with SEC rules and/or certain interpretive letters issued by the

SEC, segregate collateral or designate on their books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis. Consent fees are compensation for agreeing to changes in the terms of debt instruments and are included in interest income in the Statements of Operations.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 7.

Income Taxes: It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

Each Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ US federal tax returns remains open for each of the four periods ended as follows:

 

 

 

 

 

 

 

 

 

 











 

 

Year Ended

 

Period

 

Year Ended

 

Year Ended

 











APX

 

April 30, 2010

 

July 1, 2008 to April 30, 2009

 

June 30, 2008

 

June 30, 2007

 











MUA

 

April 30, 2010

 

June 1, 2008 to April 30, 2009

 

May 31, 2008

 

May 31, 2007

 











MEN

 

April 30, 2010

 

February 1, 2009 to April 30, 2009

 

January 31, 2009

 

January 31, 2008

 











MHD

 

April 30, 2010

 

April 30, 2009

 

April 30, 2008

 

April 30, 2007

 











MUH

 

April 30, 2010

 

August 1, 2008 to April 30, 2009

 

July 31, 2008

 

July 31, 2007

 











MUS

 

April 30, 2010

 

April 30, 2009

 

April 30, 2008

 

April 30, 2007

 











MUI

 

April 30, 2010

 

June 1, 2008 to April 30, 2009

 

May 31, 2008

 

May 31, 2008

 











MVT

 

April 30, 2010

 

November 1, 2008 to April 30, 2009

 

October 31, 2008

 

October 31, 2007

 











The statutes of limitations on the Funds’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. There are no uncertain tax positions that require recognition of a tax liability.

 

 

 


68

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 


 

Notes to Financial Statements (continued)

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Fund’s Board, non-interested Directors (“Independent Directors”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain other BlackRock Closed-End Funds selected by the Independent Directors. This has approximately the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund. Each Fund may, however, elect to invest in common shares of certain other BlackRock Closed-End Funds selected by the Independent Directors in order to match its deferred compensation obligations. Investments to cover each Fund’s deferred compensation liability, if any, are included in other assets in the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. The Funds have an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which if applicable are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and to economically hedge, or protect, their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange.

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. Counterparty risk related to exchange-traded financial futures contracts is minimal because of the protection against defaults provided by the exchange on which these contracts trade.

Financial Futures Contracts: The Funds purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are contracts for delayed delivery of securities or currencies at a specific future date and at a specific price or yield. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Funds as unrealized gains or losses. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures transactions involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Instruments Categorized by Risk Exposure:


The Effect of Derivative Instruments on the Statements of Operations
Six Months Ended October 31, 2010*


 

 

 

 

 

Net Realized Gain (Loss) from

 

 

 

 

 

 

 

 

 

 

 

 


 

 

APX

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MVT

 

















Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

$

4,454

 

$

6,998

 

$

(170,354

)

$

5,726

 

$

4,453

 

$

8,271

 

$

(213,064

)
























For the six months ended October 31, 2010, the average quarterly balance of outstanding derivative financial instruments was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APX

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MVT

 

















Financial futures contracts: Average number of contracts sold

 

 

4

 

 

6

 

 

43

 

 

5

 

 

4

 

 

7

 

 

77

 
























Average notional value of contracts sold

 

$

426,445

 

$

670,129

 

$

5,172,172

 

$

548,287

 

$

426,445

 

$

791,970

 

$

9,220,097

 

























 

 

*

As of October 31, 2010, there were no financial futures contracts outstanding.


 

 

 

 





 

SEMI-ANNUAL REPORT

OCTOBER 31, 2010

69




 


 

Notes to Financial Statements (continued)

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate of the Funds for 1940 Act purposes, but BAC and Barclays are not.

Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee at the following annual rates of each Fund’s average daily net assets as follows:

 

 

 

 

 






APX

 

 

0.65

%

MUA

 

 

0.55

%

MEN

 

 

0.50

%

MHD

 

 

0.55

%

MUH

 

 

0.55

%

MUS

 

 

0.55

%

MUI

 

 

0.55

%

MVT

 

 

0.50

%






Average daily net assets is the average daily value of each Fund’s total assets minus the sum of its accrued liabilities.

The Manager contractually agreed to waive a portion of the investment advisory fees or other expenses on MUI as a percentage of its average daily net assets as follows: 0.10% through July 31, 2009, 0.05% through July 31, 2010 and 0.00% thereafter. For the six months ended October 31, 2010, the waiver was $112,432 which is included in fees waived by advisor in the Statements of Operations.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds, however the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid through each Fund’s investment in other affiliated investment companies, if any. These amounts are shown as, or included in, fees waived by advisor in the Statements of Operations. For the six months ended October 31, 2010, the amounts waived were as follows:

 

 

 

 

 






APX

 

$

238

 

MUA

 

$

294

 

MEN

 

$

1,423

 

MHD

 

$

540

 

MUH

 

$

200

 

MUS

 

$

2,144

 

MUI

 

$

1,491

 

MVT

 

$

686

 






The Manager, for MUS, voluntarily agreed to waive its advisory fee on the proceeds of the Preferred Shares and TOBs that exceed 35% of net assets applicable to Common Shareholders. This amount is included in fees waived by advisor in the Statements of Operations. For the six months ended October 31, 2010 the waiver was $66,975.

The Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Fund to the Manager.

For the six months ended October 31, 2010, the Funds reimbursed the manager for certain accounting services, which are included in accounting services in the Statements of Operations. The reimbursements were as follows:

 

 

 

 

 






APX

 

$

1,734

 

MUA

 

$

2,744

 

MEN

 

$

4,861

 

MHD

 

$

3,264

 

MUH

 

$

2,447

 

MUS

 

$

2,836

 

MUI

 

$

8,922

 

MVT

 

$

4,988

 






Certain officers and/or directors of the Funds are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager for compensation paid to the Funds’ Chief Compliance Officer.

4. Investments

Purchases and sales of investments, excluding short-term securities, for the six months ended October 31, 2010, were as follows:

 

 

 

 

 

 

 

 









 

 

 

Purchases

 

 

Sales

 









APX

 

$

17,009,196

 

$

21,431,635

 

MUA

 

$

25,253,958

 

$

32,479,161

 

MEN

 

$

25,705,501

 

$

22,265,952

 

MHD

 

$

27,556,710

 

$

32,294,430

 

MUH

 

$

19,968,107

 

$

25,956,765

 

MUS

 

$

27,532,708

 

$

29,094,918

 

MUI

 

$

93,398,681

 

$

97,615,384

 

MVT

 

$

37,377,240

 

$

51,048,815

 










 

 

 




70

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 


 

Notes to Financial Statements (continued)

5. Capital Loss Carryforward:

As of April 30, 2010, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Expires April 30,

 

APX

 

MUA

 

MEN

 

MUH

 

MUS

 

MUI

 

MVT

 


2011

 

$

2,163,492

 

$

7,452,325

 

 

 

$

189,408

 

 

 

 

 

 

 

2012

 

 

1,659,281

 

 

5,486,273

 

$

364,714

 

 

 

 

 

 

 

 

 

2013

 

 

35,292

 

 

3,762,613

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

3,072,949

 

 

5,065,527

 

 

 

 

 

 

 

$

334,473

 

 

 

2016

 

 

 

 

527,784

 

 

2,508,309

 

 

 

$

623,720

 

 

611,323

 

$

4,929,816

 

2017

 

 

373,543

 

 

1,575,568

 

 

3,540,378

 

 

 

 

5,373,343

 

 

321,623

 

 

 

2018

 

 

2,070,050

 

 

 

 

1,225,298

 

 

 

 

6,614,798

 

 

3,730,704

 

 

 

 

 






















Total

 

$

9,374,607

 

$

23,870,090

 

$

7,638,699

 

$

189,408

 

$

12,611,861

 

$

4,998,123

 

$

4,929,816

 

 

 






















6. Concentration, Market and Credit Risk:

MEN, MUH and MUI invest a substantial amount of their assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentration in specific states.

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with coun-terparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Funds’ Statements of Assets and Liabilities, less any collateral held by the Funds.

As of October 31, 2010, APX and MUA invested a significant portion of their assets in the Health and Corporate sectors. MEN invested a significant portion of its assets in the County/City/Special District/School District and Transportation sectors. MHD, MUH and MVT invested a significant portion of their assets in the Health sector. MUS invested a significant portion of its assets in the County/City/Special District/School District, Utilities and Transportation sectors. MUI invested a significant portion of its assets in the State and County/City/Special District/School District sectors. Changes in economic conditions affecting the County/City/Special District/School District, Health, State, Transportation and Utilities sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

7. Capital Share Transactions:

Each Fund, except APX, is authorized to issue 200 million shares (150 million for APX), all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10. The par value for each Fund’s Preferred Shares is $0.10 except MEN Series A, B and C, which is $0.025, and MVT Series A, B and C, which is $0.05. The Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders.

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend and distribution reinvestment:

 

 

 

 

 

 

 

 

 

 

 

 













 

 

Six Months Ended
October 31, 2010

 

Year Ended
April 30, 2010

 







APX

 

 

 

9,368

 

 

 

 

49,557

 

 

MUA

 

 

 

52,762

 

 

 

 

163,187

 

 

MEN

 

 

 

39,726

 

 

 

 

 

 

MHD

 

 

 

28,467

 

 

 

 

3,195

 

 

MUH

 

 

 

25,137

 

 

 

 

 

 

MUS

 

 

 

40,983

 

 

 

 

7,093

 

 

MVT

 

 

 

73,485

 

 

 

 

121,196

 

 













Shares issued and outstanding remained constant for MUI for the six months ended October 31, 2010 and the year ended April 30, 2010 for MEN, MUH and MUI.

Preferred Shares

The Preferred Shares are redeemable at the option of each Fund, in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Fund, as set forth in each Fund’s Articles of Supplementary (the “Governing Instrument”) are not satisfied.

 

 

 

 





 

SEMI-ANNUAL REPORT

OCTOBER 31, 2010

71




 


 

Notes to Financial Statements (continued)

From time to time in the future, each Fund may effect repurchases of its Preferred Shares at prices below their liquidation preference as agreed upon by the Fund and seller. Each Fund also may redeem its Preferred Shares from time to time as provided in the applicable Governing Instrument. Each Fund intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors for each Fund. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

MEN, MHD, MUH, MUS, MUI, and MVT had the following series of Preferred Shares outstanding, effective yields and reset frequency as of October 31, 2010:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Series

 

Preferred
Shares

 

Effective
Yield

 

Reset
Frequency
Days

 











MEN

 

 

A1

 

 

 

1,525

 

 

 

 

0.43

%

 

 

 

28

 

 

 

 

 

B1

 

 

 

1,525

 

 

 

 

0.38

%

 

 

 

28

 

 

 

 

 

C1

 

 

 

1,525

 

 

 

 

0.44

%

 

 

 

7

 

 

 

 

 

D2

 

 

 

1,128

 

 

 

 

1.49

%

 

 

 

7

 

 





















MHD

 

 

A1

 

 

 

1,473

 

 

 

 

0.44

%

 

 

 

7

 

 

 

 

 

B1

 

 

 

1,473

 

 

 

 

0.43

%

 

 

 

7

 

 

 

 

 

C2

 

 

 

402

 

 

 

 

1.50

%

 

 

 

7

 

 





















MUH

 

 

A1

 

 

 

1,101

 

 

 

 

0.44

%

 

 

 

7

 

 

 

 

 

B1

 

 

 

1,101

 

 

 

 

0.44

%

 

 

 

7

 

 





















MUS

 

 

A1

 

 

 

1,740

 

 

 

 

0.44

%

 

 

 

7

 

 

 

 

 

B1

 

 

 

1,740

 

 

 

 

0.44

%

 

 

 

7

 

 





















MUI

 

 

M72

 

 

 

1,795

 

 

 

 

1.50

%

 

 

 

7

 

 

 

 

 

T72

 

 

 

2,423

 

 

 

 

1.50

%

 

 

 

7

 

 

 

 

 

W72

 

 

 

1,795

 

 

 

 

1.49

%

 

 

 

7

 

 

 

 

 

TH72

 

 

 

2,423

 

 

 

 

1.50

%

 

 

 

7

 

 

 

 

 

F72

 

 

 

1,795

 

 

 

 

1.50

%

 

 

 

7

 

 

 

 

 

TH282

 

 

 

1,256

 

 

 

 

1.50

%

 

 

 

28

 

 





















MVT

 

 

A1

 

 

 

1,440

 

 

 

 

0.44

%

 

 

 

28

 

 

 

 

 

B1

 

 

 

1,440

 

 

 

 

0.43

%

 

 

 

28

 

 

 

 

 

C1

 

 

 

1,440

 

 

 

 

0.43

%

 

 

 

7

 

 

 

 

 

D2

 

 

 

1,280

 

 

 

 

1.50

%

 

 

 

7

 

 






















 

 

 

 

1

The maximum applicable rate on this series of Preferred Shares is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

 

 

2

The maximum applicable rate on this series of Preferred Shares is the higher of 110% plus or times (i) the Telerate/BAA LIBOR or (ii) 90% of Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

Dividends on seven-day and 28-day Preferred Shares are cumulative at a rate which is reset every seven or 28 days, respectively, based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, each Fund is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on the Preferred Shares is as footnoted in the preceding table above. The low, high and average dividend rates on the Preferred Shares for each Fund for the period were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Series

 

Low

 

High

 

Average

 











MEN

 

 

A

 

 

 

0.37

%

 

 

 

0.50

%

 

 

 

0.41

%

 

 

 

 

B

 

 

 

0.38

%

 

 

 

0.49

%

 

 

 

0.37

%

 

 

 

 

C

 

 

 

0.35

%

 

 

 

0.49

%

 

 

 

0.42

%

 

 

 

 

D

 

 

 

1.43

%

 

 

 

1.53

%

 

 

 

1.48

%

 





















MHD

 

 

A

 

 

 

0.35

%

 

 

 

0.47

%

 

 

 

0.42

%

 

 

 

 

B

 

 

 

0.35

%

 

 

 

0.47

%

 

 

 

0.42

%

 

 

 

 

C

 

 

 

1.43

%

 

 

 

1.54

%

 

 

 

1.48

%

 





















MUH

 

 

A

 

 

 

0.35

%

 

 

 

0.47

%

 

 

 

0.42

%

 

 

 

 

B

 

 

 

0.35

%

 

 

 

0.47

%

 

 

 

0.42

%

 





















MUS

 

 

A

 

 

 

0.35

%

 

 

 

0.47

%

 

 

 

0.42

%

 

 

 

 

B

 

 

 

0.35

%

 

 

 

0.49

%

 

 

 

0.42

%

 





















MUI

 

 

M7

 

 

 

1.43

%

 

 

 

1.53

%

 

 

 

1.48

%

 

 

 

 

T7

 

 

 

1.43

%

 

 

 

1.53

%

 

 

 

1.49

%

 

 

 

 

W7

 

 

 

1.45

%

 

 

 

1.53

%

 

 

 

1.49

%

 

 

 

 

TH7

 

 

 

1.43

%

 

 

 

1.53

%

 

 

 

1.48

%

 

 

 

 

F7

 

 

 

1.43

%

 

 

 

1.53

%

 

 

 

1.48

%

 

 

 

 

TH28

 

 

 

1.43

%

 

 

 

1.52

%

 

 

 

1.48

%

 





















MVT

 

 

A

 

 

 

0.38

%

 

 

 

0.46

%

 

 

 

0.43

%

 

 

 

 

B

 

 

 

0.38

%

 

 

 

0.47

%

 

 

 

0.41

%

 

 

 

 

C

 

 

 

0.38

%

 

 

 

0.47

%

 

 

 

0.42

%

 

 

 

 

D

 

 

 

1.43

%

 

 

 

1.53

%

 

 

 

1.45

%

 





















Since February 13, 2008, the Preferred Shares of the Funds failed to clear any of their auctions. As a result, the Preferred Shares dividend rates were reset to the maximum applicable rate, which ranged from 0.35% to 1.54% for the six months ended October 31, 2010. A failed auction is not an event of default for the Funds but it has a negative impact on the liquidity of Preferred Shares. A failed auction occurs when there are more sellers of a Fund’s auction rate preferred shares than buyers. A successful auction for the Funds’ Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, Preferred Shareholders may not have the ability to sell the Preferred Shares at their liquidation preference.

The Funds may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%.

The Funds pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions and 0.15% on the aggregate principal amount of all shares that fail to clear their auctions. Certain broker dealers have individually agreed to reduce commissions for failed auctions.

 

 

 




72

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 


 

Notes to Financial Statements (concluded)

During the year ended April 30, 2010, MEN, MHD, MUH, MUS and MVT announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 











MEN

 

 

A

 

 

7/14/09

 

 

 

174

 

 

$

4,350,000

 

 

 

 

B

 

 

7/21/09

 

 

 

174

 

 

$

4,350,000

 

 

 

 

C

 

 

6/30/09

 

 

 

174

 

 

$

4,350,000

 

 

 

 

D

 

 

7/06/09

 

 

 

129

 

 

$

3,225,000

 

















MHD

 

 

A

 

 

7/08/09

 

 

 

145

 

 

$

3,625,000

 

 

 

 

B

 

 

7/06/09

 

 

 

145

 

 

$

3,625,000

 

 

 

 

C

 

 

7/07/09

 

 

 

39

 

 

$

975,000

 

















MUH

 

 

A

 

 

7/08/09

 

 

 

119

 

 

$

2,975,000

 

 

 

 

B

 

 

7/06/09

 

 

 

119

 

 

$

2,975,000

 

















MUS

 

 

A

 

 

7/06/09

 

 

 

144

 

 

$

3,600,000

 

 

 

 

B

 

 

7/07/09

 

 

 

144

 

 

$

3,600,000

 

















MVT

 

 

A

 

 

7/30/09

 

 

 

111

 

 

$

2,775,000

 

 

 

 

B

 

 

7/09/09

 

 

 

111

 

 

$

2,775,000

 

 

 

 

C

 

 

7/09/09

 

 

 

111

 

 

$

2,775,000

 

 

 

 

D

 

 

7/07/09

 

 

 

99

 

 

$

2,475,000

 

















The Funds financed the Preferred Share redemptions with cash received from TOB transactions.

Preferred Shares issued and outstanding remained constant for the six months ended October 31, 2010 for all funds and the year ended April 30, 2010 for MUI.

8. Restatement Information:

Subsequent to the initial issuance of the May 31, 2006 financial statements for MUI and July 31, 2006 for MUH, the Funds determined that the criteria for sale accounting in FAS 140 had not been met for certain transfers of municipal bonds related to investments in TOB Residuals, and that these transfers should have been accounted for as secured borrowings rather than as sales. As a result, certain financial highlights for the year ended May 31, 2005 for MUI and July 31, 2005 for MUH have been restated to give effect to recording the transfers of the municipal bonds as secured borrowings, including recording interest on the bonds as interest income and interest on the secured borrowings as interest expense.

 

 

 

 

 

 

 

 

 

 

 

 









MUH Financial Highlights
For the Year Ended July 31, 2005

 

Previously
Reported

 

Restated

 







Total expenses, net of reimbursement*

 

 

 

1.19

%

 

 

 

1.27

%

 

Total expenses*

 

 

 

1.19

%

 

 

 

1.27

%

 

Portfolio turnover

 

 

 

45.11

%

 

 

 

38

%

 














 

 

 

 

 

 

 

 

 

 

 

 













MUI Financial Highlights
For the Year Ended May 31, 2005

 

Previously
Reported

 

Restated

 







Total expenses, net of waiver*

 

 

 

0.84

%

 

 

 

0.85

%

 

Portfolio turnover

 

 

 

54.55

%

 

 

 

54

%

 














 

 

 

 

*

Do not reflect the effect of dividends to Preferred Shareholders.

9. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

Each Fund paid a net investment income dividend on December 1, 2010 to Common Shareholders of record on November 15, 2010 as follows:

 

 

 

 

 

 

 






 

 

Common Dividend
Per Share

 





APX

 

 

$

0.0440

 

 

MUA

 

 

$

0.0625

 

 

MEN

 

 

$

0.0570

 

 

MHD

 

 

$

0.0890

 

 

MUH

 

 

$

0.0805

 

 

MUS

 

 

$

0.0740

 

 

MUI

 

 

$

0.0715

 

 

MVT

 

 

$

0.0885

 

 








Each Fund paid a net investment income dividend on December 31, 2010 to Common Shareholders of record on December 15, 2010 as follows:

 

 

 

 

 

 

 








 

 

Common Dividend
Per Share

 





APX

 

 

$

0.0440

 

 

MUA

 

 

$

0.0625

 

 

MEN

 

 

$

0.0570

 

 

MHD

 

 

$

0.0905

 

 

MUH

 

 

$

0.0805

 

 

MUS

 

 

$

0.0740

 

 

MUI

 

 

$

0.0715

 

 

MVT

 

 

$

0.0885

 

 








The dividends declared on Preferred Shares for the period November 1, 2010 to November 30, 2010 were as follows:

 

 

 

 

 

 

 

 









 

 

Series

 

Dividends
Declared

 







MEN

 

 

A

 

$

13,366

 

 

 

 

B

 

$

11,944

 

 

 

 

C

 

$

12,942

 

 

 

 

D

 

$

34,298

 









MHD

 

 

A

 

$

6,715

 

 

 

 

B

 

$

6,647

 

 

 

 

C

 

$

3,695

 









MUH

 

 

A

 

$

9,431

 

 

 

 

B

 

$

7,100

 









MUS

 

 

A

 

$

14,945

 

 

 

 

B

 

$

14,770

 









MUI

 

 

M7

 

$

54,238

 

 

 

 

T7

 

$

73,387

 

 

 

 

W7

 

$

54,365

 

 

 

 

TH7

 

$

73,432

 

 

 

 

TH28

 

$

38,625

 

 

 

 

F7

 

$

54,238

 









MVT

 

 

A

 

$

12,878

 

 

 

 

B

 

$

12,682

 

 

 

 

C

 

$

12,250

 

 

 

 

D

 

$

38,593

 










 

 

 

 





 

SEMI-ANNUAL REPORT

OCTOBER 31, 2010

73




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors (each, a “Board,” and, collectively, the “Boards,” and the members of which are referred to as “Board Members”) of each of BlackRock Apex Municipal Fund, Inc. (“APX”), BlackRock Muni Intermediate Duration Fund, Inc. (“MUI”), BlackRock MuniAssets Fund, Inc. (“MUA”), BlackRock MuniEnhanced Fund, Inc. (“MEN”), BlackRock MuniHoldings Fund, Inc. (“MHD”), BlackRock MuniHoldings Fund II, Inc. (“MUH”), BlackRock MuniHoldings Quality Fund, Inc. (“MUS”) and BlackRock MuniVest Fund II, Inc. (“MVT,” and together with APX, MUI, MUA, MEN, MHD, MUH, and MUS, each a “Fund” and, collectively, the “Funds”) met on April 8, 2010 and May 13 – 14, 2010 to consider the approval of each Fund’s investment advisory agreement (collectively, the “Advisory Agreements”) with BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. The Boards also considered the approval of the sub-advisory agreement (collectively, the “Sub-Advisory Agreements”) between the Manager and BlackRock Investment Management, LLC (the “Sub-Advisor”), with respect to each Fund. The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements are referred to herein as the “Agreements.”

Activities and Composition of the Board

The Board of each Fund consists of ten individuals, eight of whom are not “interested persons” of the Funds as defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of each Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chairman of each Board is an Independent Board Member. Each Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member) and is chaired by an Independent Board Member. The Board of each of MVT, MUI, MEN, MHD, MUH, and MUS also has two ad hoc committees, the Joint Product Pricing Committee, which consists of Independent Board Members and the directors/trustees of the boards of certain other BlackRock-managed funds, who are not “interested persons” of their respective funds, and the Ad Hoc Committee on Auction Market Preferred Shares. The Board of each of APX and MUA has one ad hoc committee, the Joint Product Pricing Committee.

The Agreements

Pursuant to the 1940 Act, the Boards are required to consider the continuation of the Agreements on an annual basis. In connection with this process, the Boards assessed, among other things, the nature, scope and quality of the services provided to the Funds by the personnel of BlackRock and its affiliates, including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services and assistance in meeting applicable legal and regulatory requirements.

From time to time throughout the year, the Boards, acting directly and through their committees, considered at each of their meetings factors that are relevant to their annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Funds and their shareholders. Among the matters the Boards considered were: (a) investment performance for one-, three- and five-year periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management’s and portfolio managers’ analysis of the reasons for any over performance or underperformance against a Fund’s peers and/or benchmark, as applicable; (b) fees, including advisory and other amounts paid to BlackRock and its affiliates by each Fund for services such as call center and fund accounting; (c) each Fund’s operating expenses; (d) the resources devoted to and compliance reports relating to each Fund’s investment objective, policies and restrictions; (e) each Fund’s compliance with its Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls; (h) BlackRock’s implementation of the proxy voting policies approved by the Boards; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; (k) an analysis of contractual and actual management fees for products with similar investment objectives across the open-end fund, closed-end fund and institutional account product channels, as applicable; and; (l) periodic updates on BlackRock’s business.

 

 

 


74

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 8, 2010 meeting, the Boards requested and each received materials specifically relating to the Agreements. The Boards are engaged in a process with BlackRock to periodically review the nature and scope of the information provided to better assist their deliberations. The materials provided in connection with the April meeting included: (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on Fund fees and expenses, and the investment performance of each Fund as compared with a peer group of funds as determined by Lip-per, and in the case of APX, MUI, MUA, MHD, MUH and MVT, a customized peer group selected by BlackRock (collectively, “Peers”); (b) information on the profitability of the Agreements to BlackRock and a discussion of fall-out benefits to BlackRock and its affiliates and significant shareholders; (c) a general analysis provided by BlackRock concerning investment advisory fees charged to other clients, such as institutional clients and open-end funds, under similar investment mandates; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by each Fund to BlackRock; and (f) if applicable, a comparison of management fees to similar BlackRock closed-end funds, as classified by Lipper.

At an in-person meeting held on April 8, 2010, the Boards reviewed materials relating to their consideration of the Agreements. As a result of the discussions that occurred during the April 8, 2010 meeting, the Boards presented BlackRock with questions and requests for additional information and BlackRock responded to these requests with additional written information in advance of the May 13 – 14, 2010 Board meeting.

At an in-person meeting held on May 13 – 14, 2010, each Board, including its Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and its respective Fund and the Sub-Advisory Agreement between the Manager and the Sub-Advisor with respect to its respective Fund, each for a one-year term ending June 30, 2011. In approving the continuation of the Agreements, the Boards considered: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund and BlackRock; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and its affiliates from their relationship with each Fund; (d) economies of scale; and (e) other factors deemed relevant by the Board Members.

The Boards also considered other matters they deemed important to the approval process, such as services related to the valuation and pricing of each Fund’s portfolio holdings, direct and indirect benefits to BlackRock and its affiliates and significant shareholders from their relationship with each Fund and advice from independent legal counsel with respect to the review process and materials submitted for the Boards’ review. The Boards noted the willingness of BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as controlling, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Boards, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of each Fund. Throughout the year, the Boards compared each Fund’s performance to the performance of a comparable group of closed-end funds, and the performance of a relevant benchmark, if any. The Boards met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. The Boards also reviewed the materials provided by each Fund’s portfolio management team discussing each Fund’s performance and each Fund’s investment objective, strategies and outlook.

The Boards considered, among other factors, the number, education and experience of BlackRock’s investment personnel generally and each Fund’s portfolio management team, investments by portfolio managers in the funds they manage, BlackRock’s portfolio trading capabilities, BlackRock’s use of technology, BlackRock’s commitment to compliance, BlackRock’s credit analysis capabilities, BlackRock’s risk analysis capabilities and BlackRock’s approach to training and retaining portfolio managers and other research, advisory and management personnel. The Boards also reviewed a general description of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent.

In addition to advisory services, the Boards considered the quality of the administrative and non-investment advisory services provided to each Fund. BlackRock and its affiliates and significant shareholders provide each Fund with certain administrative and other services (in addition to any such services provided to each Fund by third parties) and officers and other personnel as are necessary for the operations of each Fund. In addition to investment advisory services, BlackRock and its affiliates provide each Fund with other services, including: (i) preparing disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of each Fund; (iii) assisting with daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; and (viii) performing other administrative functions necessary for the operation of each Fund, such as tax reporting, fulfilling regulatory filing requirements, and call center services. The Boards reviewed the structure and duties of BlackRock’s fund administration, accounting, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2010

75




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

B. The Investment Performance of the Funds and BlackRock: The Boards, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the April 8, 2010 meeting, the Boards were provided with reports, independently prepared by Lipper, which included a comprehensive analysis of each Fund’s performance. The Boards also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In connection with their reviews, the Boards received and reviewed information regarding the investment performance of each Fund as compared to a representative group of similar funds as determined by Lipper and to all funds in each Fund’s applicable Lipper category, and in the case of APX, MUI, MUA, MHD, MUH and MVT, a customized peer group selected by BlackRock. The Boards were provided with a description of the methodology used by Lipper to select peer funds. The Boards regularly review the performance of each Fund throughout the year.

The Boards of APX, MUI, MUA, MHD, MUH and MVT noted that, in general, each of their respective Funds performed better than their respective Peers in that each Fund’s performance was at or above the median of its Customized Lipper Peer Group Composite in each of the one-, three- and five-year periods reported.

The Board of MEN noted that, in general, MEN performed better than its Peers in that MEN’s performance was at or above the median of its Lipper Performance Composite in each of the one-, three- and five-year periods reported.

The Board of MUS noted that MUS performed below the median of its Lipper Performance Composite in the three- and five-year periods reported, but that MUS performed better than or equal to the median of its Lipper Performance Composite in the one-year period reported. The Board of MUS and BlackRock reviewed the reasons for MUS’s underperformance during the three- and five-year periods compared with its Peers. The Board of MUS was informed that, among other things, MUS’s performance was hindered by its short duration posture during a period when interest rates were decreasing.

The Board of MUS and BlackRock discussed BlackRock’s strategy for improving MUS’s performance and BlackRock’s commitment to providing the resources necessary to assist MUS’s portfolio managers and to improve MUS’s performance.

The Boards noted that BlackRock has made changes to the organization of the overall fixed income group management structure designed to result in a strengthened leadership team with clearer accountability.

C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds: The Boards, including the Independent Board Members, reviewed each Fund’s contractual advisory fee rate compared with the other funds in its Lipper category. The Boards also compared each Fund’s total expenses, as well as actual management fees, to those of other funds in its Lipper category. The Boards considered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including separately managed institutional accounts.

The Boards received and reviewed statements relating to BlackRock’s financial condition and profitability with respect to the services it provided each Fund. The Boards were also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Boards reviewed BlackRock’s profitability with respect to each Fund and other funds the Boards currently oversee for the year ended December 31, 2009 compared to available aggregate profitability data provided for the year ended December 31, 2008. The Boards reviewed BlackRock’s profitability with respect to other fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, expense allocations and business mix, and the difficulty of comparing profitability as a result of those factors.

The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available. Nevertheless, to the extent such information was available, the Boards considered BlackRock’s overall operating margin, in general, compared to the operating margin for leading investment management firms whose operations include advising closed-end funds, among other product types. That data indicates that operating margins for BlackRock with respect to its registered funds are generally consistent with margins earned by similarly situated publicly traded competitors. In addition, the Boards considered, among other things, certain third party data comparing BlackRock’s operating margin with that of other publicly traded asset management firms. That third party data indicates that larger asset bases do not, in themselves, translate to higher profit margins.

In addition, the Boards considered the cost of the services provided to each Fund by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management and distribution of each Fund and the other funds advised by BlackRock and its affiliates. As part of their analysis, the Boards reviewed BlackRock’s methodology in allocating its costs to the management of each Fund. The Boards also considered whether BlackRock has the financial resources necessary to attract and retain high-quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Boards.

 

 

 


76

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

Each Board noted that its respective Fund’s contractual management fee rate was lower than or equal to the median contractual management fee rate paid by the Fund’s Peers, in each case, before taking into account any expense reimbursements or fee waivers.

D. Economies of Scale: The Boards, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Fund increase. The Boards also considered the extent to which each Fund benefits from such economies and whether there should be changes in the advisory fee rate or structure in order to enable each Fund to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the asset level of each Fund.

The Boards noted that most closed-end fund complexes do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering and each fund is managed independently consistent with its own investment objectives. The Boards noted that only one closed-end fund in the Fund Complex has breakpoints in its fee structure. Information provided by Lipper also revealed that only one closed-end fund complex with total closed-end fund nets assets exceeding $10 billion, as of December 31, 2009, used a complex level breakpoint structure.

E. Other Factors Deemed Relevant by the Board Members: The Boards, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates and significant shareholders may derive from their respective relationships with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates and significant shareholders as service providers to the Funds, including for administrative and distribution services. The Boards also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Boards also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain mutual fund transactions to assist in managing all or a number of its other client accounts. The Boards further noted that BlackRock completed the acquisition of a complex of exchange-traded funds (“ETFs”) on December 1, 2009, and that BlackRock’s funds may invest in such ETFs without any offset against the management fees payable by the funds to BlackRock.

In connection with its consideration of the Agreements, the Boards also received information regarding BlackRock’s brokerage and soft dollar practices. The Boards received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Boards noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their respective Fund shares in the secondary market if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

Each Board, including its Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and its respective Fund for a one-year term ending June 30, 2011 and the Sub-Advisory Agreement between the Manager and the Sub-Advisor, with respect to its respective Fund, for a one-year term ending June 30, 2011. As part of its approval, each Board considered the discussions of BlackRock’s fee structure, as it applies to its respective Fund, being conducted by the ad hoc Joint Product Pricing Committee. Based upon its evaluation of all of the aforementioned factors in their totality, each Board, including its Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of its respective Fund and its shareholders. In arriving at a decision to approve the Agreements, none of the Boards identified any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination. The contractual fee arrangements for each Fund reflect the results of several years of review by the Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. Certain aspects of the arrangements may be the subject of more attention in some years than in others, and the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.

 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2010

77




 


 

Officers and Directors

 

Richard E. Cavanagh, Chairman of the Board and Director

Karen P. Robards, Vice Chair of the Board, Chair of the Audit Committee

and Director

Richard S. Davis, Director

Frank J. Fabozzi, Director and Member of the Audit Committee

Kathleen F. Feldstein, Director

James T. Flynn, Director and Member of the Audit Committee

Henry Gabbay, Director

Jerold B. Harris, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director and Member of the Audit Committee

Anne Ackerley, President and Chief Executive Officer

Brendan Kyne, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Brian Kindelan, Chief Compliance Officer

Howard Surloff, Secretary

 

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

 

Sub-Advisor

BlackRock Investment Management, LLC

Plainsboro, NJ 08536

 

Custodians

The Bank of New York Mellon1

New York, NY 10286

 

State Street Bank and Trust Company2

Boston, MA 02101

 

Transfer Agents

Common Shares:

BNY Mellon Shareowner Services1

Jersey City, NJ 07310

 

Computershare Trust Company, N.A.2

Providence, RI 02940

 

Auction Agent

Preferred Shares:

The Bank of New York Mellon

New York, NY 10286

 

Accounting Agent

State Street Bank and Trust Company

Princeton, NJ 08540

 

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Princeton, NJ 08540

 

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom LLP

New York, NY 10036

 

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809


 

 

 

 

1

For APX, MUA, MHD, MUH, MUS and MVT.

 

 

 

 

2

For MEN and MUI.


 

 

 


78

SEMI-ANNUAL REPORT

OCTOBER 31, 2010




 


 

Additional Information

 


Proxy Results


The Annual Meeting of Shareholders was held on September 2, 2010 for shareholders of record on July 6, 2010, to elect director nominees for each Fund. There were no broker non-votes with regard to any non-routine matters for any of the Funds. Due to a lack of quorum of Preferred Shares, action on the proposal regarding the Preferred Shares nominees’ election for MUH, MUS, MUI and MVT was subsequently adjourned to October 5, 2010; and action on the proposal regarding Preferred Shares nominees’ election for MUI was additionally adjourned to November 2, 2010.

Below are the results with respect to each nominee, who will continue to serve as Director for each of the Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Richard E. Cavanagh

 

Kathleen F. Feldstein

 

Henry Gabbay

 

 

 


 


 



 

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 






























APX

 

 

17,389,641

 

 

579,660

 

 

0

 

 

17,402,626

 

 

566,675

 

 

0

 

 

17,403,092

 

 

566,209

 

 

0

 

MUA

 

 

19,110,585

 

 

605,168

 

 

0

 

 

19,104,810

 

 

610,943

 

 

0

 

 

19,112,279

 

 

603,474

 

 

0

 






























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jerrold B. Harris

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes
Withheld

 

Abstain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 











 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APX

 

 

17,393,820

 

 

575,481

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MUA

 

 

19,126,404

 

 

589,349

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






























For the Funds listed above, Directors whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are Richard S. Davis, Frank J. Fabozzi, James T. Flynn, R. Glenn Hubbard, W. Carl Kester and Karen P. Robards.

Below are the results with respect to each nominee, who will continue to serve as Director for each of the Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Richard E. Cavanagh

 

Richard S. Davis

 

Frank J. Fabozzi2

 

 

 


 


 



 

 

 

 

Votes

 

 

 

 

 

Votes

 

 

 

 

 

Votes

 

 

 

 

 

Votes For

 

Withheld

 

Abstain

 

Votes For

 

Withheld

 

Abstain

 

Votes For

 

Withheld

 

Abstain

 





















MEN

 

 

24,985,842

 

 

864,768

 

 

0

 

 

24,851,085

 

 

999,525

 

 

0

 

 

1,558

 

 

437

 

 

0

 

MHD

 

 

11,955,268

 

 

270,563

 

 

0

 

 

11,870,890

 

 

354,941

 

 

0

 

 

969

 

 

479

 

 

0

 

MUH

 

 

9,619,191

 

 

152,566

 

 

0

 

 

9,538,255

 

 

233,502

 

 

0

 

 

600

 

 

15

 

 

354

 

MUS

 

 

9,765,954

 

 

490,683

 

 

0

 

 

9,749,677

 

 

506,960

 

 

0

 

 

903

 

 

67

 

 

403

 

MUI1

 

 

35,413,968

 

 

754,469

 

 

0

 

 

35,375,112

 

 

793,325

 

 

0

 

 

1,983

 

 

330

 

 

0

 

MVT

 

 

17,486,254

 

 

793,261

 

 

0

 

 

17,516,541

 

 

762,974

 

 

0

 

 

1,190

 

 

249

 

 

454

 






























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kathleen F. Feldstein

 

James T. Flynn

 

Henry Gabbay

 

 

 


 


 



 

 

 

 

Votes

 

 

 

 

 

Votes

 

 

 

Votes

 

 

 

 

 

 

 

Votes For

 

Withheld

 

Abstain

 

Votes For

 

Withheld

 

Abstain

 

Votes For

 

Withheld

 

Abstain

 





















MEN

 

 

24,921,133

 

 

929,477

 

 

0

 

 

24,910,803

 

 

939,807

 

 

0

 

 

24,980,584

 

 

870,026

 

 

0

 

MHD

 

 

11,944,853

 

 

280,978

 

 

0

 

 

11,929,071

 

 

296,760

 

 

0

 

 

11,955,268

 

 

270,563

 

 

0

 

MUH

 

 

9,630,665

 

 

141,092

 

 

0

 

 

9,619,591

 

 

152,166

 

 

0

 

 

9,619,591

 

 

152,166

 

 

0

 

MUS

 

 

9,725,140

 

 

531,497

 

 

0

 

 

9,708,149

 

 

548,488

 

 

0

 

 

9,761,342

 

 

495,295

 

 

0

 

MUI

 

 

35,349,200

 

 

819,237

 

 

0

 

 

35,333,587

 

 

834,850

 

 

0

 

 

35,406,447

 

 

761,990

 

 

0

 

MVT

 

 

17,546,291

 

 

733,224

 

 

0

 

 

17,492,008

 

 

787,507

 

 

0

 

 

17,456,527

 

 

822,988

 

 

0

 






























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jerrold B. Harris

 

R. Glenn Hubbard

 

W. Carl Kester2

 

 

 


 


 



 

 

 

 

Votes

 

 

 

 

 

Votes

 

 

 

 

 

Votes

 

 

 

 

 

Votes For

 

Withheld

 

Abstain

 

Votes For

 

Withheld

 

Abstain

 

Votes For

 

Withheld

 

Abstain

 





















MEN

 

 

24,928,511

 

 

922,099

 

 

0

 

 

24,978,023

 

 

872,587

 

 

0

 

 

1,558

 

 

437

 

 

0

 

MHD

 

 

11,932,978

 

 

292,853

 

 

0

 

 

11,933,612

 

 

292,219

 

 

0

 

 

969

 

 

479

 

 

0

 

MUH

 

 

9,619,591

 

 

152,166

 

 

0

 

 

9,618,106

 

 

153,651

 

 

0

 

 

600

 

 

15

 

 

354

 

MUS

 

 

9,711,365

 

 

545,272

 

 

0

 

 

9,758,033

 

 

498,604

 

 

0

 

 

903

 

 

67

 

 

403

 

MUI1

 

 

35,384,449

 

 

783,988

 

 

0

 

 

35,322,859

 

 

845,578

 

 

0

 

 

1,983

 

 

330

 

 

0

 

MVT

 

 

17,515,731

 

 

763,784

 

 

0

 

 

17,475,859

 

 

803,656

 

 

0

 

 

1,190

 

 

249

 

 

454

 






























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Karen P. Robards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Votes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Votes For

 

Withheld

 

Abstain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 








 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEN

 

 

24,992,578

 

 

858,032

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MHD

 

 

11,958,406

 

 

267,425

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MUH

 

 

9,629,515

 

 

142,242

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MUS

 

 

9,741,203

 

 

515,434

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MUI

 

 

35,414,253

 

 

754,184

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MVT

 

 

17,573,472

 

 

706,043

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 































 

 

 

 

1

Due to the lack of a quorum of Preferred Shares, MUI was unable to act on the election of the two directors reserved for election solely by the Preferred Shareholders for the Fund. Accordingly, Frank J. Fabozzi and W. Carl Kester will remain in office and continue to serve as directors for the Fund.

 

 

 

 

2

Voted on by the holders of Preferred Shares only.


 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2010

79




 


 

Additional Information (continued)

 


Dividend Policy


The Funds’ dividend policy is to distribute all or a portion of their net investment income to their shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Funds may at times pay out less than the entire amount of net investment income earned in any particular month and may at times, in any particular month, pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

 


General Information


On June 10, 2010, the Manager announced that the directors of MUI had received a demand letter sent on behalf of certain of MUI Common Shareholders. The demand letter alleged that the Manager and MUI’s officers and Board of Directors (the “Board”) breached their fiduciary duties owed to MUI and its Common Shareholders by redeeming at par certain of MUI’s Preferred Shares, and demanded that the Board take action to remedy those alleged breaches. In response to the demand letter, the Board established a Demand Review Committee (the “Committee”) of the independent Directors to investigate the claims made in the demand letter with the assistance of independent counsel. Based upon its investigation, the Committee recommended that the Board reject the demand specified in the letter. After reviewing the findings of the Committee, the Board unanimously adopted the Committee’s recommendation and unanimously voted to reject the demand.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ web-sites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 441-7762.

Availability of Quarterly Portfolio Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Fund’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Funds.

 

 

 


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Additional Information (continued)

 


BlackRock Privacy Principles


BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

 

 

 


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Additional Information (concluded)

 


Board Approval


On September 1, 2010, the Board of Directors (the “Boards”) of MEN and MUS (the “Funds”) approved changes to certain investment policies of the Funds.

Historically, under normal market conditions, each Fund has been required to invest at least 80% of its assets in municipal bonds either (i) insured under an insurance policy purchased by the Fund or (ii) insured under an insurance policy obtained by the issuer of the municipal bond or any other party. In September 2008, the Funds adopted an amended investment policy of purchasing only municipal bonds insured by insurance providers with claims-paying abilities rated investment grade at the time of investment (the “Insurance Investment Policy”).

Following the onset of the credit and liquidity crises, the claims-paying ability rating of most of the municipal bond insurance providers has been lowered by the rating agencies. These downgrades have called into question the long-term viability of the municipal bond insurance market, which has the potential to severely limit the ability of BlackRock Advisors, LLC, the Funds’ investment advisor (the “Manager”), to manage the Funds under the Insurance Investment Policy.

As a result, on September 1, 2010, the Manager recommended, and the Board approved, the removal of the Insurance Investment Policy. As a result of this investment policy change, the Funds will not be required to dispose of assets currently held within the Funds. The Funds will maintain, and have no current intention to amend, their investment policy of, under normal market conditions, generally investing in municipal obligations rated investment grade at the time of investment.

As each Fund increases the amount of its assets that are invested in municipal obligations that are not insured, each Fund’s shareholders will be exposed to the risk of the failure of such securities’ issuers to pay interest and repay principal and will not have the benefit of protection provided under municipal bond insurance policies. As a result, shareholders will be more dependent on the analytical ability of the Manager to evaluate the credit quality of issuers of municipal obligations in which each Fund invests. The Board believes that the amended investment policy is in the best interests of each Fund and its shareholders because it believes that the potential benefits from increased flexibility outweigh the potential increase in risk from the lack of insurance policies provided by weakened insurance providers. Of course, the new investment policy cannot assure that each Fund will achieve its investment objective.

As disclosed in each Fund’s prospectus, each Fund is required to provide shareholders 60 days notice of a change to the Insurance Investment Policy. Accordingly, a notice describing the changes discussed above was mailed to shareholders of record as of September 1, 2010. The new investment policy took effect on November 9, 2010.

After the amended policy takes effect, the Manager anticipates that it will gradually reposition each Fund’s portfolio over time, and that during such period, each Fund may continue to hold a substantial portion of its assets in insured municipal bonds. At this time, it is uncertain how long it may take to reposition each Fund’s portfolio once the amended policy takes effect, and the Funds may continue to be subject to risks associated with investing a substantial portion of their assets in insured municipal bonds until the repositioning is complete. No action is required by shareholders of the Funds in connection with this change.

On November 9, 2010, in connection with this change in non-fundamental policy, MUS changed its name from BlackRock MuniHoldings Insured Fund, Inc. to BlackRock MuniHoldings Quality Fund, Inc. The Fund will continue to trade on the New York Stock Exchange under its current ticker symbol.

The approved changes will not alter any Fund’s investment objective.

 

 

 


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This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Certain of the Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

 

 

(GO PAPERLESS LOGO)

 

 

#CEMUN18-10/10

(BLACKROCK LOGO)


Item 2 –

Code of Ethics – Not Applicable to this semi-annual report

 

 

Item 3 –

Audit Committee Financial Expert – Not Applicable to this semi-annual report

 

 

Item 4 –

Principal Accountant Fees and Services – Not Applicable to this semi-annual report

 

 

Item 5 –

Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

 

 

Item 6 –

Investments

 

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

 

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report

 

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies – Not Applicable to this semi-annual report

 

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

 

 

Item 10 –

Submission of Matters to a Vote of Security Holders – On September 17, 2010, the Board of Directors of the Fund amended and restated in its entirety the bylaws of the Fund (the "Amended and Restated Bylaws"). The Amended and Restated Bylaws were deemed effective as of September 17, 2010 and set forth, among other things, the processes and procedures that shareholders of the Fund must follow, and specifies additional information that shareholders of the Fund must provide, when proposing director nominations at any annual meeting or special meeting in lieu of an annual meeting or other business to be considered at an annual meeting or special meeting.

 

 

Item 11 –

Controls and Procedures

 

 

11(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.

 

 

11(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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 12 –

Exhibits attached hereto

 

 

12(a)(1) –

Code of Ethics – Not Applicable to this semi-annual report

 

 

12(a)(2) –

Certifications – Attached hereto

 

 

12(a)(3) –

Not Applicable

 

 

12(b) –

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 MuniHoldings Fund, Inc.

   
  By: /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Fund, Inc.
   
  Date: December 22, 2010
   
  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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Fund, Inc.
   
  Date: December 22, 2010
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniHoldings Fund, Inc.
     
  Date: December 22, 2010