UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

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: John M. Perlowski, 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: 04/30/2011

 

Item 1 – Report to Stockholders

 


 

 

(BLACKROCK LOGO)

April 30, 2011


 

 

 

Annual Report

 

 

 

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

Annual Report:

 

Municipal Market Overview

4

Fund Summaries

5

The Benefits and Risks of Leveraging

12

Derivative Financial Instruments

12

Financial Statements:

 

Schedules of Investments

13

Statements of Assets and Liabilities

49

Statements of Operations

51

Statements of Changes in Net Assets

52

Statements of Cash Flows

54

Financial Highlights

55

Notes to Financial Statements

62

Report of Independent Registered Public Accounting Firm

71

Important Tax Information

72

Automatic Dividend Reinvestment Plans

73

Officers and Directors

74

Additional Information

78


 

 

 

 

 




2

ANNUAL REPORT

APRIL 30, 2011




 


 

Dear Shareholder

Time and again, we have seen how various global events and developing trends can have significant influence on financial markets. I hope you find that the following review of recent market conditions provides additional perspective on the performance of your investments as you read this shareholder report.

Over the past 12 months, we have seen a sluggish, stimulus-driven economic recovery at long last gain real traction, accelerate, and transition into a consumption-driven expansion. For the most part, 2010 was plagued with widely fluctuating economic data, but as the year drew to a close, it became clear that cyclical stimulus had beaten out structural problems as economic data releases generally became more positive and financial markets showed signs of continuing improvement. Although the sovereign debt crisis in Europe and high inflation in developing markets that troubled the global economy in 2010 remain challenges today, overall investor confidence has improved considerably. During the first four months of 2011, that confidence was shaken by political turmoil in the Middle East/North Africa region, soaring prices of oil and other commodities, tremendous natural disasters in Japan and a change in the ratings outlook for US debt. However, strong corporate earnings prevailed and financial markets resumed their course while the global economy continued to garner strength.

Equity markets experienced uneven growth and high volatility in 2010, but ended the year with gains. Following a strong start to 2011, the series of confidence-shaking events brought spurts of heightened volatility to markets worldwide, but was not enough to derail the bull market. Overall, global equities posted strong returns over the past 12 months. Emerging market equities, which had outperformed developed markets earlier in the period, fell prey to heightened inflationary pressures and underperformed developed markets later in the period. In the United States, strong corporate earnings and positive signals from the labor market were sources of encouragement for equity investors, although the housing market did not budge from its slump. Early in 2011, the US Federal Reserve announced that it would continue its Treasury purchase program (“QE2”) through to completion and keep interest rates low for an extended period. This compelled investors to continue buying riskier assets, furthering the trend of small cap stocks outperforming large caps.

While fixed income markets saw yields trend lower (pushing bond prices higher) through most of 2010, the abrupt reversal in investor sentiment and risk tolerance in the fourth quarter drove yields sharply upward. Global credit markets were surprisingly resilient in the face of recent headwinds and yields regained relative stability as the period came to a close. Yield curves globally remained steep by historical standards and higher-risk sectors continued to outperform higher-quality assets. The tax-exempt municipal market enjoyed a powerful rally during the period of low yields in 2010, but when that trend reversed, the market was dealt an additional blow as it became evident that the Build America Bond program would not be extended. Meanwhile, municipal finance troubles raised credit concerns among investors and tax-exempt mutual funds experienced heavy outflows, resulting in wider spreads and falling prices. The new year brought relief from these headwinds and a rebound in the tax-exempt municipal market.

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.

 

 

 

 

 

 

 

 

Risk Assets Rallied on Growing Investor Confidence: Total Returns as of April 30, 2011

 

6-month

 

12-month

 







US large cap equities (S&P 500® Index)

 

 

16.36

%

 

17.22

%









US small cap equities (Russell 2000® Index)

 

 

23.73

 

 

22.20

 









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

 

 

12.71

 

 

19.18

 









Emerging market equities (MSCI Emerging Markets Index)

 

 

9.74

 

 

20.67

 









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

 

 

0.09

 

 

0.17

 









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

 

 

(3.85

)

 

6.37

 









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

 

 

0.02

 

 

5.36

 









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

 

 

(1.68

)

 

2.20

 









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

 

 

6.18

 

 

13.32

 










 

 

 

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

While no one can peer into a crystal ball and eliminate the uncertainties presented by the economic landscape and financial markets, BlackRock can offer investors the next best thing: partnership with the world’s largest asset management firm that delivers consistent long-term investment results with fewer surprises. 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




 


 

Municipal Market Overview


 


For the Period Ended April 30, 2011


Twelve months ago, the municipal yield curve was much flatter than it is today, as investor concerns were focused on the possibility of deflation and a double-dip in the US economy. From April through September 2010, rates moved lower (and prices higher) across the curve, reaching historic lows in August when the yield on 5-year issues touched 1.06%, the 10-year reached 2.18%, and the 30-year was 3.67%. The market took a turn in October, with yields drifting higher (and prices lower) amid a “perfect storm” of events that ultimately resulted in the worst quarterly performance the municipal market had seen since the Fed tightening cycle of 1994. Treasury yields lost their support as concerns over the US deficit raised the question whether foreign investors would continue to purchase Treasury securities at historically low yields. Municipal valuations also suffered a quick and severe setback as it became evident that the Build America Bond (“BAB”) program would expire at the end of 2010. The program opened the taxable market to municipal issuers, which had successfully alleviated supply pressure in the traditional tax-exempt marketplace, bringing down yields in that space.

(LINE GRAPH)

The financial media has been replete with interviews, articles and presentations depicting the stress experienced in municipal finance. This has resulted in a loss of confidence among retail investors, the traditional buyers of individual municipal bonds and mutual funds. From the middle of November through year-end, mutual funds specializing in tax-exempt bonds witnessed weekly outflows averaging over $2.5 billion. Long-term and high-yield funds saw the greatest redemptions, followed by state-specific funds at a slower, yet still significant, pace. Political uncertainty surrounding the midterm elections and the approach taken by the new Congress on issues such as income tax rates, alternative minimum tax and the previously mentioned BAB expiration exacerbated the situation. All these conditions, combined with the seasonal illiquidity surrounding year-end holidays and dealers closing their fiscal books, sapped willing market participation from the trading community. December brought declining demand for municipal securities with no comparable reduction in supply. As it became evident that the BAB program would be retired, issuers rushed deals to market in the taxable and, to a lesser degree, traditional tax-exempt space. This imbalance in the supply/demand technicals provided the classic market reaction: wider quality spreads and higher bond yields.

Demand usually is strong at the beginning of a new year, but retail investors continued to move away from municipal mutual funds, with AMG Data Services showing $19.9 billion of redemptions in the first four months of 2011. Since mid-November, outflows persisted for 24 consecutive weeks, totaling $33.4 billion. Fortunately, lower supply in 2011 is offsetting the decline in demand. According to Thomson Reuters, through April, year-to-date new issuance was down 53% compared to the same period last year. Issuers have been reluctant to bring new deals to the market due to a number of factors, including higher interest rates, fiscal policy changes and a reduced need for municipal borrowing given the acceleration of some issuance into 2010 prior to the BAB program’s expiration. Accordingly, estimates for 2011 issuance have ratcheted down more than $100 billion since the beginning of the year, when the initial consensus was $350 billion.

Overall, the municipal yield curve steepened during the period from April 30, 2010 to April 30, 2011.As measured by Thomson Municipal Market Data, 30-year yields on AAA-rated municipals rose 53 basis points (“bps”) to 4.58%, while yields for 5-year maturities rallied by 22 bps to 1.50%, and 10-year maturities rallied by 9 bps to 2.85%.With the exception of the 2- to 5-year range, the spread between maturities increased over the past year, with the greatest increase seen in the 5- to 30-year range, where the spread widened by 75 bps, while overall the slope between 2- and 30-year maturities increased by 66 bps to 402 bps.

The fundamental picture for municipalities will be subject to scrutiny for months to come, as the challenges to state and local budgets are real and need to be addressed with significant cuts to expenses and tax revenue increases. The debates around austerity measures needed to succeed in balancing these budgets are not over whether action needs to be taken, but over the magnitude, approach and political will to accomplish these needs. The heightened attention on municipal finance has the potential to improve this market for the future, especially if these efforts result in greater means toward disclosure and accuracy (and timeliness) of reporting. Progress toward these fundamental changes may be tested in the near future, as California, Illinois and Puerto Rico will soon need to take austerity measures and access financing in the municipal market to address immediate-term fiscal imbalances before their new fiscal year begins in July. As the economy improves, tax receipts for states are rising and have begun to exceed budget projections. BlackRock maintains a constructive view of the municipal market as we look beyond the interim challenges faced by states working to close their June 30 year-end shortfalls.

 

 

 




4

ANNUAL REPORT

APRIL 30, 2011




 

 



 

Fund Summary as of April 30, 2011

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 12 months ended April 30, 2011, the Fund returned (5.17)% based on market price and 2.31% 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 (1.08)% based on market price and 1.40% 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 concentrated holdings in corporate-related industrial development bonds and low exposure to the underperforming tobacco sector contributed positively to performance. Additional benefits were derived from seasoned portfolio holdings with shorter remaining terms to their maturity, which exhibited lower price volatility compared to longer-dated bonds during the period. As interest rates rose and the yield curve steepened in the later part of the period, holdings of longer-dated bonds detracted from performance. In addition, certain investments in development district (special district) bonds hurt returns as scheduled construction fell significantly below expectations due to the continuing slump in real estate values.

 

 

 

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”)

 

 

MUA

 

Initial Offering Date

 

 

June 25, 1993

 

Yield on Closing Market Price as of April 30, 2011 ($11.27)1

 

 

6.65%

 

Tax Equivalent Yield2

 

 

10.23%

 

Current Monthly Distribution per Common Share3

 

 

$0.0625

 

Current Annualized Distribution per Common Share3

 

 

$0.7500

 

Leverage as of April 30, 20114

 

 

5%

 







 

 

 

 

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 rate 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 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/11

 

4/30/10

 

Change

 

High

 

Low

 













Market Price

 

$

11.27

 

$

12.65

 

 

(10.91

)%

$

13.21

 

$

10.90

 

Net Asset Value

 

$

12.14

 

$

12.63

 

 

(3.88

)%

$

13.12

 

$

11.84

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







Health

 

27

%

 

29

%

 

Corporate

 

22

 

 

24

 

 

Transportation

 

15

 

 

11

 

 

County/City/Special District/School District

 

14

 

 

13

 

 

Utilities

 

8

 

 

4

 

 

Education

 

6

 

 

6

 

 

Housing

 

4

 

 

4

 

 

State

 

3

 

 

4

 

 

Tobacco

 

1

 

 

5

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







AAA/Aaa

 

3

%

 

6

%

 

AA/Aa

 

8

 

 

3

 

 

A

 

12

 

 

14

 

 

BBB/Baa

 

28

 

 

26

 

 

BB/Ba

 

7

 

 

8

 

 

B

 

5

 

 

7

 

 

CCC/Caa

 

5

 

 

4

 

 

CC/Ca

 

1

 

 

 

 

Not Rated6

 

31

 

 

32

 

 










 

 

 

 

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 April 30, 2011 and April 30, 2010, the market value of these securities was $25,268,218 representing 6% and $15,867,930 representing 6%, respectively, of the Fund’s long-term investments.


 

 

 




ANNUAL REPORT

APRIL 30, 2011

5




 

 



 

 

Fund Summary as of April 30, 2011

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 that are investment grade quality 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


Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of its assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Insured Municipal Debt Funds (Leveraged) category into the Lipper General Municipal Debt Funds (Leveraged) category. For the 12 months ended April 30, 2011, the Fund returned (1.44)% based on market price and 0.78% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (0.60)% based on market price and 0.10% based on NAV, and the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 0.17% based on market price and 0.85% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount 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 performance was positively impacted by its shorter duration holdings (those with lower sensitivity to interest rate movements) such as advanced refunded bonds and higher coupon bonds pricing to shorter call dates. Shorter duration securities performed well during the period as the shorter end of the yield curve rallied while long-term rates rose. The Fund also benefited from its exposure to the housing and corporate sectors, which performed well during the period. Detracting from performance was the Fund’s exposure to the long end of the yield curve, where interest rates rose sharply. Exposure to lower quality spread sectors also had a negative impact as credit spreads generally widened over the period. The Fund uses interest rate futures contracts to hedge portfolio risk related to movements in interest rates. This strategy had a modestly negative impact on performance 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 April 30, 2011 ($9.99)1

 

 

6.85%

 

Tax Equivalent Yield2

 

 

10.54%

 

Current Monthly Distribution per Common Share3

 

 

$ 0.057

 

Current Annualized Distribution per Common Share3

 

 

$ 0.684

 

Leverage as of April 30, 20114

 

 

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 rate is not constant and is subject to change.

 

 

 

 

4

Represents Auction Market Preferred Shares (“AMPS”) and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to AMPS 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

4/30/11

 

4/30/10

 

Change

 

High

 

Low

 













Market Price

 

$

9.99

 

$

10.81

 

 

(7.59

)%

$

11.70

 

$

9.52

 

Net Asset Value

 

$

10.30

 

$

10.90

 

 

(5.50

)%

$

11.47

 

$

9.54

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







County/City/Special District/School District

 

29

%

 

28

%

 

Transportation

 

23

 

 

24

 

 

State

 

19

 

 

19

 

 

Utilities

 

14

 

 

14

 

 

Health

 

6

 

 

7

 

 

Education

 

5

 

 

3

 

 

Corporate

 

2

 

 

2

 

 

Housing

 

2

 

 

3

 

 










 


Credit Quality Allocations5


 


 

 

 

 

 

 

 

 

 

 

4/30/11

 

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

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Fund Summary as of April 30, 2011

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 12 months ended April 30, 2011, the Fund returned (0.21)% based on market price and 0.57% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (0.60)% based on market price and 0.10% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount 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. Security selection and sector allocation among corporates, transportation and education as well as tax-backed issues in the Great Lakes region drove the Fund’s positive performance. Additional benefits were derived from seasoned portfolio holdings with shorter remaining terms to their maturity, which exhibited lower price volatility compared to longer-dated bonds during the period. As interest rates rose and the yield curve steepened in the later part of the period, holdings of longer-dated bonds detracted from performance. In addition, the Fund’s high exposure to the health care sector and low exposure to tax-backed issues in the Far West and Mid-Atlantic regions had a negative impact on performance. The Fund uses interest rate futures contracts to hedge portfolio risk related to movements in interest rates. This strategy had a modestly negative impact on performance 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

 

 

MHD

 

Initial Offering Date

 

 

May 2, 1997

 

Yield on Closing Market Price as of April 30, 2011 ($14.51)1

 

 

7.48%

 

Tax Equivalent Yield2

 

 

11.51%

 

Current Monthly Distribution per Common Share3

 

 

$0.0905

 

Current Annualized Distribution per Common Share3

 

 

$1.0860

 

Leverage as of April 30, 20114

 

 

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 rate is not constant and is subject to change.

 

 

 

 

4

Represents AMPS and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to AMPS 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/11

 

4/30/10

 

Change

 

High

 

Low

 













Market Price

 

$

14.51

 

$

15.70

 

 

(7.58

)%

$

17.05

 

$

13.80

 

Net Asset Value

 

$

14.67

 

$

15.75

 

 

(6.86

)%

$

16.55

 

$

13.80

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







Health

 

23

%

 

23

%

 

Transportation

 

16

 

 

11

 

 

State

 

12

 

 

12

 

 

Corporate

 

12

 

 

14

 

 

Utilities

 

11

 

 

11

 

 

County/City/Special District/School District

 

10

 

 

11

 

 

Education

 

9

 

 

9

 

 

Housing

 

6

 

 

7

 

 

Tobacco

 

1

 

 

2

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







AAA/Aaa

 

12

%

 

19

%

 

AA/Aa

 

40

 

 

32

 

 

A

 

22

 

 

23

 

 

BBB/Baa

 

13

 

 

11

 

 

BB/Ba

 

2

 

 

2

 

 

B

 

2

 

 

2

 

 

CCC/Caa

 

1

 

 

2

 

 

Not Rated6

 

8

 

 

9

 

 










 

 

 

 

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 April 30, 2011 and April 30, 2010, the market value of these securities was $3,863,321 representing 1% and $2,973,600 representing 1%, respectively, of the Fund’s long-term investments.


 

 

 




ANNUAL REPORT

APRIL 30, 2011

7




 

 



 

 

Fund Summary as of April 30, 2011

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 12 months ended April 30, 2011, the Fund returned (2.14)% based on market price and 0.92% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (0.60)% based on market price and 0.10% 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. Security selection and sector allocation among corporates, transportation and housing as well as tax-backed issues in the Great Lakes region drove the Fund’s positive performance. Additional benefits were derived from seasoned portfolio holdings with shorter remaining terms to their maturity, which exhibited lower price volatility compared to longer-dated bonds during the period. As interest rates rose and the yield curve steepened in the later part of the period, holdings of longer-dated bonds detracted from performance. In addition, the Fund’s high exposure to the health care sector and low exposure to tax-backed issues in the Far West and Mid-Atlantic regions had a negative impact on performance. The Fund uses interest rate futures contracts to hedge portfolio risk related to movements in interest rates. This strategy had a modestly negative impact on performance 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

 

 

MUH

 

Initial Offering Date

 

 

February 27, 1998

 

Yield on Closing Market Price as of April 30, 2011 ($13.35)1

 

 

7.33%

 

Tax Equivalent Yield2

 

 

11.28%

 

Current Monthly Distribution per Common Share3

 

 

$0.0815

 

Current Annualized Distribution per Common Share3

 

 

$0.9780

 

Leverage as of April 30, 20114

 

 

37%

 







 

 

 

 

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 rate is not constant and is subject to change.

 

 

 

 

4

Represents AMPS and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to AMPS 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

4/30/11

 

4/30/10

 

Change

 

High

 

Low

 













Market Price

 

$

13.35

 

$

14.68

 

 

(9.06

)%

$

16.48

 

$

12.27

 

Net Asset Value

 

$

13.74

 

$

14.65

 

 

(6.21

)%

$

15.39

 

$

12.87

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







Health

 

22

%

 

21

%

 

Transportation

 

14

 

 

10

 

 

County/City/Special District/School District

 

14

 

 

15

 

 

Corporate

 

13

 

 

15

 

 

State

 

13

 

 

12

 

 

Education

 

9

 

 

10

 

 

Utilities

 

9

 

 

8

 

 

Housing

 

5

 

 

7

 

 

Tobacco

 

1

 

 

2

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







AAA/Aaa

 

13

%

 

18

%

 

AA/Aa

 

42

 

 

37

 

 

A

 

20

 

 

20

 

 

BBB/Baa

 

13

 

 

12

 

 

BB/Ba

 

1

 

 

2

 

 

B

 

1

 

 

1

 

 

CCC/Caa

 

2

 

 

2

 

 

Not Rated6

 

8

 

 

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 April 30, 2011 and April 30, 2010, the market value of these securities was $1,064,679 representing 0% and $4,406,945 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 




8

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Fund Summary as of April 30, 2011

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 municipal obligations 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 80% of its assets in investment grade municipal obligations with remaining maturities of one year or more 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


Effective November 9, 2010, the Fund’s investment policy was changed by the removal of the insurance investment policy that required at least 80% of its assets to be invested in insured municipal securities. Accordingly, the Fund was moved from the Lipper Insured Municipal Debt Funds (Leveraged) category into the Lipper General Municipal Debt Funds (Leveraged) category. For the 12 months ended April 30, 2011, the Fund returned (1.60)% based on market price and 0.21% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (0.60)% based on market price and 0.10% based on NAV, and the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 0.17% based on market price and 0.85% 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 holdings of higher quality essential service bonds with high coupon rates (6% or higher) contributed positively to performance as interest rates rose during the period. Higher coupon bonds typically outperform lower coupon bonds in a rising interest rate environment as higher coupon bonds are priced to a shorter call date, while lower coupon bonds are priced to maturity. The Fund maintained a fully invested posture during the period, which enhanced the Fund’s total return by boosting its income accrual. Detracting from performance was the Fund’s exposure to long duration bonds (those with greater sensitivity to interest rate movements) and long-dated bonds as long-term interest rates rose sharply. The surprise non-extension of the Build America Bond (“BAB”) program at the end of 2010 put upward pressure on the long end of the yield curve, where most of the BAB supply was issued. Additionally, the yield curve steepened during the period as a result of the general perception among investors that the economy is improving, along with higher inflation expectations. The Fund uses interest rate futures contracts to hedge portfolio risk related to movements in interest rates. This strategy had a modestly negative impact on performance 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

 

 

MUS

 

Initial Offering Date

 

 

May 1, 1998

 

Yield on Closing Market Price as of April 30, 2011 ($12.31)1

 

 

7.21%

 

Tax Equivalent Yield2

 

 

11.09%

 

Current Monthly Distribution per Common Share3

 

 

$0.074

 

Current Annualized Distribution per Common Share3

 

 

$0.888

 

Leverage as of April 30, 20114

 

 

42%

 







 

 

 

 

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 rate is not constant and is subject to change.

 

 

 

 

4

Represents AMPS and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to AMPS 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

4/30/11

 

4/30/10

 

Change

 

High

 

Low

 













Market Price

 

$

12.31

 

$

13.40

 

 

(8.13

)%

$

14.73

 

$

10.87

 

Net Asset Value

 

$

12.48

 

$

13.34

 

 

(6.45

)%

$

13.94

 

$

11.54

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







County/City/Special District/School District

 

26

%

 

33

%

 

Utilities

 

24

 

 

22

 

 

Transportation

 

21

 

 

16

 

 

State

 

12

 

 

13

 

 

Health

 

9

 

 

9

 

 

Housing

 

5

 

 

5

 

 

Education

 

2

 

 

 

 

Corporate

 

1

 

 

2

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







AAA/Aaa

 

9

%

 

58

%

 

AA/Aa

 

69

 

 

16

 

 

A

 

18

 

 

24

 

 

BBB/Baa

 

4

 

 

1

 

 

Not Rated

 

 

 

1

6

 










 

 

 

 

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 April 30, 2010, the market value of these securities was $2,342,435 representing 1% of the Fund’s long-term investments.


 

 

 




ANNUAL REPORT

APRIL 30, 2011

9




 

 



 

 

Fund Summary as of April 30, 2011

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 12 months ended April 30, 2011, the Fund returned 2.41% based on market price and 3.86% based on NAV. For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 3.14% based on market price and 3.98% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount 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 benefited from its heavy weighting in the tax-backed sector, which was among the strongest performing sectors during the period. A significant exposure to the corporate sector also had a positive impact on performance. The Fund’s strong bias toward higher quality issues proved beneficial, as did its holdings issued by New York, which was one of the better performing states during the period. Detracting from performance was the Fund’s overexposure to hospital bonds, which underperformed the market, and underexposure to the strong-performing housing sector. Traditionally, municipal bonds issued in high-tax states tend to provide a better store of value and liquidity than lower-taxing states when markets are declining. However, under the current economic conditions, higher-taxing states are more severely impacted by heavy deficits and suffer the most credit deterioration. As a result, the Fund’s overexposure to California and New Jersey credits, and the traditionally higher-yielding state of Illinois, negatively impacted returns.

 

 

 

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 April 30, 2011 ($13.65)1

 

 

6.29%

 

Tax Equivalent Yield2

 

 

9.68%

 

Current Monthly Distribution per Common Share3

 

 

$0.0715

 

Current Annualized Distribution per Common Share3

 

 

$0.8580

 

Leverage as of April 30, 20114

 

 

39%

 







 

 

 

 

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 rate is not constant and is subject to change.

 

 

 

 

4

Represents Variable Rate Demand Preferred Shares (“VRDP Shares”) and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/11

 

4/30/10

 

Change

 

High

 

Low

 













Market Price

 

$

13.65

 

$

14.13

 

 

(3.40

)%

$

16.17

 

$

12.76

 

Net Asset Value

 

$

14.45

 

$

14.75

 

 

(2.03

)%

$

15.59

 

$

13.68

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 







 

 

4/30/11

 

4/30/10

 







State

 

22

%

 

23

%

 

County/City/Special District/School District

 

21

 

 

21

 

 

Health

 

15

 

 

12

 

 

Corporate

 

11

 

 

12

 

 

Transportation

 

8

 

 

8

 

 

Education

 

8

 

 

6

 

 

Tobacco

 

7

 

 

6

 

 

Utilities

 

5

 

 

8

 

 

Housing

 

3

 

 

4

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







AAA/Aaa

 

14

%

 

28

%

 

AA/Aa

 

39

 

 

25

 

 

A

 

25

 

 

23

 

 

BBB/Baa

 

11

 

 

11

 

 

BB/Ba

 

1

 

 

1

 

 

B

 

1

 

 

2

 

 

CCC/Caa

 

1

 

 

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 April 30, 2011 and April 30, 2010, the market value of these securities was $21,293,420 representing 2% and $11,900,188 representing 1%, respectively, of the Fund’s long-term investments.


 

 

 




10

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Fund Summary as of April 30, 2011

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 12 months ended April 30, 2011, the Fund returned (1.04)% based on market price and 0.73% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (0.60)% based on market price and 0.10% 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. Security selection and sector allocation among corporates and transportation as well as tax-backed issues in the Great Lakes region drove the Fund’s positive performance. Additional benefits were derived from seasoned portfolio holdings with shorter remaining terms to their maturity, which exhibited lower price volatility compared to longer-dated bonds during the period. As interest rates rose and the yield curve steepened in the later part of the period, holdings of longer-dated bonds detracted from performance. In addition, the Fund’s high exposure to the health care sector and low exposure to tax-backed issues in the Far West and Mid-Atlantic regions had a negative impact on performance. The Fund uses interest rate futures contracts to hedge portfolio risk related to movements in interest rates. This strategy had a modestly negative impact on performance 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

 

 

MVT

 

Initial Offering Date

 

 

March 29, 1993

 

Yield on Closing Market Price as of April 30, 2011 ($13.72)1

 

 

7.74%

 

Tax Equivalent Yield2

 

 

11.91%

 

Current Monthly Distribution per Common Share3

 

 

$0.0885

 

Current Annualized Distribution per Common Share3

 

 

$1.0620

 

Leverage as of April 30, 20114

 

 

42%

 



 

 

 

 

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 rate is not constant and is subject to change.

 

 

 

 

4

Represents AMPS and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to AMPS 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

4/30/11

 

4/30/10

 

Change

 

High

 

Low

 













Market Price

 

$

13.72

 

$

14.94

 

 

(8.17

)%

$

15.84

 

$

12.30

 

Net Asset Value

 

$

13.47

 

$

14.41

 

 

(6.52

)%

$

15.12

 

$

12.55

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







Health

 

25

%

 

22

%

 

Corporate

 

16

 

 

18

 

 

Transportation

 

15

 

 

12

 

 

State

 

14

 

 

14

 

 

Utilities

 

10

 

 

10

 

 

County/City/Special District/School District

 

9

 

 

10

 

 

Education

 

7

 

 

6

 

 

Housing

 

3

 

 

5

 

 

Tobacco

 

1

 

 

3

 

 









 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

4/30/11

 

4/30/10

 







AAA/Aaa

 

10

%

 

18

%

 

AA/Aa

 

45

 

 

39

 

 

A

 

21

 

 

18

 

 

BBB/Baa

 

10

 

 

11

 

 

BB/Ba

 

2

 

 

 

 

B

 

2

 

 

3

 

 

CCC/Caa

 

1

 

 

1

 

 

Not Rated6

 

9

 

 

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 April 30, 2011 and April 30, 2010, the market value of these securities was $4,588,089 representing 1% and $5,505,082 representing 1%, respectively, of the Fund’s long-term investments.


 

 

 




ANNUAL REPORT

APRIL 30, 2011

11




 


The Benefits and Risks of Leveraging

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

To leverage, all of the Funds, except MUA, issue AMPS or VRDP Shares (collectively “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, which will be based on short-term interest rates, will normally 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 holders of Common Shares (“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 holders of Preferred Shares 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 TOBs, 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’ NAVs, market prices and dividend rates than comparable portfolios 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% (45% for MUI) of its total managed assets at the time such leverage is incurred. As of April 30, 2011, the Funds had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 





 

 

Percent of
Leverage

 





MUA

 

5

%

 

MEN

 

40

%

 

MHD

 

38

%

 

MUH

 

37

%

 

MUS

 

42

%

 

MUI

 

39

%

 

MVT

 

42

%

 







 


Derivative Financial Instruments

The Funds may invest in various derivative financial 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 financial 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 use a derivative instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial 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

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Schedule of Investments April 30, 2011

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

 

Value

 









Alabama — 0.7%

 

 

 

 

 

 

 

Alabama State Docks Department, Refunding RB,
6.00%, 10/01/40

 

$

2,165

 

$

2,155,972

 

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

 

 

895

 

 

818,692

 

 

 

 

 

 




 

 

 

 

 

 

2,974,664

 









Alaska — 0.6%

 

 

 

 

 

 

 

Alaska Industrial Development & Export Authority, RB,
Williams Lynxs, Alaska Cargoport, AMT:

 

 

 

 

 

 

 

7.80%, 5/01/14

 

 

395

 

 

394,996

 

8.00%, 5/01/23

 

 

2,000

 

 

1,999,980

 

 

 

 

 

 




 

 

 

 

 

 

2,394,976

 









Arizona — 4.5%

 

 

 

 

 

 

 

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

 

 

2,320

 

 

1,774,498

 

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

 

 

7,750

 

 

6,426,067

 

Pima County IDA, RB:

 

 

 

 

 

 

 

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

 

 

2,300

 

 

2,200,157

 

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

 

 

4,015

 

 

3,501,642

 

Pima County IDA, Refunding RB, Charter Schools II,
Series A, 6.75%, 7/01/31

 

 

670

 

 

605,559

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

1,840

 

 

1,584,958

 

5.00%, 12/01/37

 

 

1,350

 

 

1,118,867

 

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

 

 

575

 

 

575,725

 

University Medical Center Corp. Arizona, RB:

 

 

 

 

 

 

 

6.25%, 7/01/29

 

 

820

 

 

839,918

 

6.50%, 7/01/39

 

 

500

 

 

511,055

 

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

 

 

500

 

 

482,700

 

 

 

 

 

 




 

 

 

 

 

 

19,621,146

 









Arkansas — 0.4%

 

 

 

 

 

 

 

County of Little River Arkansas, Refunding RB,
Georgia-Pacific Corp. Project, AMT, 5.60%, 10/01/26

 

 

1,740

 

 

1,599,130

 









California — 4.0%

 

 

 

 

 

 

 

California Statewide Communities Development
Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

2,175

 

 

2,051,221

 

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

 

 

1,000

 

 

1,042,980

 

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

 

 

3,500

 

 

3,660,545

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 









California (concluded)

 

 

 

 

 

 

 

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

 

$

2,320

 

$

2,069,440

 

City of San Jose California, RB, Convention Center
Expansion & Renovation Project:

 

 

 

 

 

 

 

6.50%, 5/01/36

 

 

900

 

 

908,559

 

6.50%, 5/01/42

 

 

2,220

 

 

2,228,081

 

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

 

 

5,195

 

 

5,550,597

 

 

 

 

 

 




 

 

 

 

 

 

17,511,423

 









Colorado — 1.6%

 

 

 

 

 

 

 

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

 

 

610

 

 

572,650

 

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

 

 

3,695

 

 

573,870

 

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

 

 

 

 

 

 

 

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

 

 

4,850

 

 

4,756,492

 

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

 

 

1,025

 

 

918,431

 

 

 

 

 

 




 

 

 

 

 

 

6,821,443

 









Connecticut — 2.0%

 

 

 

 

 

 

 

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

 

 

3,450

 

 

2,244,570

 

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

 

 

1,865

 

 

1,949,522

 

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

 

 

 

 

 

 

 

6.25%, 1/01/31

 

 

4,395

 

 

3,464,183

 

5.25%, 1/01/33 (b)

 

 

1,500

 

 

1,017,390

 

 

 

 

 

 




 

 

 

 

 

 

8,675,665

 









Delaware — 1.1%

 

 

 

 

 

 

 

County of Sussex Delaware, RB, NRG Energy, Inc.,
Indian River Project, 6.00%, 10/01/40

 

 

1,000

 

 

975,670

 

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

 

 

4,225

 

 

3,628,050

 

 

 

 

 

 




 

 

 

 

 

 

4,603,720

 










 


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

ACA Financial Guaranty 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 Bonds

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

HRB

Housing Revenue Bonds

HUD

U.S. 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

SAN

State Aid Notes

TE

Tax Exempt

TIF

Tax Increment Financing


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2011

13




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







District of Columbia — 2.9%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

7.38%, 1/01/30

 

$

1,665

 

$

1,632,566

 

7.50%, 1/01/39

 

 

2,725

 

 

2,662,543

 

District of Columbia, Refunding RB, Howard University,
Series A, 6.50%, 10/01/41

 

 

3,725

 

 

3,685,776

 

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

 

 

1,785

 

 

1,744,105

 

Metropolitan Washington Airports Authority, RB, CAB,
2nd Senior Lien, Series B (AGC) (a):

 

 

 

 

 

 

 

6.55%, 10/01/30

 

 

7,000

 

 

2,002,000

 

6.77%, 10/01/39

 

 

5,000

 

 

733,150

 

 

 

 

 

 




 

 

 

 

 

 

12,460,140

 









Florida — 10.0%

 

 

 

 

 

 

 

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

 

 

1,065

 

 

1,009,620

 

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

 

 

1,180

 

 

1,105,129

 

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

 

 

455

 

 

426,954

 

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

 

 

 

 

 

 

 

Series A, 7.13%, 4/01/30

 

 

4,500

 

 

3,939,795

 

Series B, 7.13%, 4/01/30

 

 

3,100

 

 

2,714,081

 

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

 

 

2,200

 

 

1,807,784

 

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

 

 

1,515

 

 

1,506,198

 

Mid-Bay Bridge Authority, RB, Series A, 7.25%, 10/01/40

 

 

4,550

 

 

4,530,981

 

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

 

 

 

 

 

 

 

6.00%, 5/01/24

 

 

1,370

 

 

1,284,224

 

6.25%, 5/01/37

 

 

4,605

 

 

4,098,818

 

Palm Beach County Health Facilities Authority, RB, Acts
Retirement Life Community, 5.50%, 11/15/33

 

 

3,500

 

 

3,103,800

 

Santa Rosa Bay Bridge Authority, RB, 6.25%,
7/01/28 (c)(d)

 

 

5,180

 

 

1,868,530

 

Sarasota County Health Facilities Authority, Refunding RB,
Village On The Isle Project:

 

 

 

 

 

 

 

5.50%, 1/01/27

 

 

955

 

 

833,018

 

5.50%, 1/01/32

 

 

1,345

 

 

1,126,142

 

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

 

 

615

 

 

614,514

 

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

 

 

3,935

 

 

2,990,994

 

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

 

 

1,905

 

 

1,904,771

 

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

 

 

4,525

 

 

3,011,749

 

Village Community Development District No. 9, Special
Assessment Bonds:

 

 

 

 

 

 

 

6.75%, 5/01/31

 

 

2,000

 

 

2,021,700

 

7.00%, 5/01/41

 

 

3,230

 

 

3,285,685

 

 

 

 

 

 




 

 

 

 

 

 

43,184,487

 









Georgia — 3.4%

 

 

 

 

 

 

 

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

 

 

1,035

 

 

871,366

 

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

 

 

3,365

 

 

3,707,927

 

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

 

 

2,780

 

 

2,532,302

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Georgia (concluded)

 

 

 

 

 

 

 

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

 

$

2,905

 

$

2,629,693

 

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

 

 

 

 

 

 

 

6.38%, 11/15/29

 

 

700

 

 

709,856

 

6.63%, 11/15/39

 

 

880

 

 

888,237

 

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

 

 

4,115

 

 

3,572,314

 

 

 

 

 

 




 

 

 

 

 

 

14,911,695

 









Guam — 1.5%

 

 

 

 

 

 

 

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

 

 

1,265

 

 

1,197,904

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

615

 

 

615,388

 

6.75%, 11/15/29

 

 

1,075

 

 

1,071,915

 

7.00%, 11/15/39

 

 

1,115

 

 

1,139,352

 

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

 

 

2,460

 

 

2,389,496

 

 

 

 

 

 




 

 

 

 

 

 

6,414,055

 









Illinois — 5.7%

 

 

 

 

 

 

 

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

 

 

7,000

 

 

5,037,620

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

4,170

 

 

4,152,861

 

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

 

 

2,000

 

 

2,158,060

 

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

 

 

1,170

 

 

1,262,465

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,500

 

 

9,450

 

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

 

 

3,500

 

 

1,470,350

 

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

 

 

4,000

 

 

3,747,480

 

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

 

 

1,175

 

 

998,915

 

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

 

 

9,860

 

 

912,938

 

Railsplitter Tobacco Settlement Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

1,400

 

 

1,350,832

 

6.00%, 6/01/28

 

 

710

 

 

682,835

 

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

 

 

1,825

 

 

1,521,904

 

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

 

 

1,465

 

 

1,304,143

 

 

 

 

 

 




 

 

 

 

 

 

24,609,853

 









Indiana — 0.4%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.70%, 9/01/37

 

 

1,055

 

 

799,996

 

5.75%, 9/01/42

 

 

1,310

 

 

976,461

 

 

 

 

 

 




 

 

 

 

 

 

1,776,457

 









Kentucky — 0.3%

 

 

 

 

 

 

 

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

 

 

1,580

 

 

1,499,072

 









Louisiana — 1.2%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,093,500

 










 

 

 

See Notes to Financial Statements.

 




14

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Maryland — 2.9%

 

 

 

 

 

 

 

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

 

$

3,615

 

$

3,306,641

 

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

 

 

4,110

 

 

3,932,571

 

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

 

 

1,000

 

 

399,530

 

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

 

 

3,110

 

 

2,534,059

 

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

 

 

2,580

 

 

2,579,561

 

 

 

 

 

 




 

 

 

 

 

 

12,752,362

 









Massachusetts — 1.0%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB,
Foxborough Regional Charter School, Series A,
7.00%, 7/01/42

 

 

1,025

 

 

1,022,284

 

Massachusetts Development Finance Agency,
Refunding RB:

 

 

 

 

 

 

 

Eastern Nazarene College, 5.63%, 4/01/19

 

 

40

 

 

38,023

 

Eastern Nazarene College, 5.63%, 4/01/29

 

 

80

 

 

66,231

 

Tufts Medical Center, Series I, 6.75%, 1/01/36

 

 

1,490

 

 

1,475,681

 

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

 

 

2,000

 

 

1,809,240

 

 

 

 

 

 




 

 

 

 

 

 

4,411,459

 









Michigan — 2.7%

 

 

 

 

 

 

 

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

 

 

1,525

 

 

1,206,656

 

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

 

 

900

 

 

909,846

 

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

 

 

3,000

 

 

2,482,500

 

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

 

 

6,310

 

 

7,154,089

 

 

 

 

 

 




 

 

 

 

 

 

11,753,091

 









Minnesota — 0.4%

 

 

 

 

 

 

 

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

 

 

1,785

 

 

1,905,327

 









Missouri — 0.5%

 

 

 

 

 

 

 

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

 

 

2,315

 

 

2,333,867

 









Multi-State — 0.3%

 

 

 

 

 

 

 

MuniMae TE Bond Subsidiary LLC, 7.50%,
6/30/49 (b)(e)(f)

 

 

1,524

 

 

1,417,238

 









Nevada — 0.2%

 

 

 

 

 

 

 

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

 

 

965

 

 

956,402

 









New Hampshire — 0.4%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,628,400

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New Jersey — 6.6%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

$

1,300

 

$

1,181,505

 

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

 

 

4,050

 

 

4,081,023

 

Continental Airlines Inc. Project, AMT, 6.25%,
9/15/19

 

 

2,000

 

 

1,891,420

 

Continental Airlines Inc. Project, AMT, 6.40%,
9/15/23

 

 

1,000

 

 

942,800

 

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

 

 

4,330

 

 

3,946,752

 

Continental Airlines Inc. Project, AMT, 9.00%,
6/01/33 (f)

 

 

1,250

 

 

1,298,700

 

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

 

 

4,000

 

 

4,014,680

 

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

 

 

 

 

 

 

 

7.13%, 12/01/23

 

 

670

 

 

763,585

 

7.50%, 12/01/32

 

 

3,575

 

 

3,953,485

 

New Jersey Health Care Facilities Financing Authority, RB:

 

 

 

 

 

 

 

AHS Hospital Corp., 5.50%, 7/01/31 (g)

 

 

1,250

 

 

1,230,425

 

Pascack Valley Hospital Association, 6.63%,
7/01/36 (c)(d)

 

 

3,870

 

 

39

 

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

 

 

4,090

 

 

3,986,523

 

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

 

 

6,210

 

 

1,145,683

 

 

 

 

 

 




 

 

 

 

 

 

28,436,620

 









New York — 6.2%

 

 

 

 

 

 

 

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

 

 

4,195

 

 

3,899,672

 

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

 

 

1,000

 

 

944,630

 

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

 

 

1,400

 

 

1,322,482

 

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

 

 

5,685

 

 

6,389,940

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

1,765

 

 

1,809,619

 

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

 

 

4,130

 

 

4,144,414

 

Series C, 6.80%, 6/01/28

 

 

860

 

 

886,737

 

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

 

 

610

 

 

554,868

 

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

 

 

1,100

 

 

959,915

 

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

 

 

1,270

 

 

1,271,194

 

Port Authority of New York & New Jersey, RB, JFK
International Air Terminal:

 

 

 

 

 

 

 

6.00%, 12/01/36

 

 

1,340

 

 

1,293,261

 

6.00%, 12/01/42

 

 

1,305

 

 

1,247,058

 

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

 

 

2,090

 

 

2,109,834

 

 

 

 

 

 




 

 

 

 

 

 

26,833,624

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2011

15




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







North Carolina — 1.6%

 

 

 

 

 

 

 

North Carolina Medical Care Commission, RB, First
Mortgage, Whitestone, Series A:

 

 

 

 

 

 

 

7.75%, 3/01/31

 

$

1,000

 

$

998,840

 

7.75%, 3/01/41

 

 

1,420

 

 

1,388,320

 

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

 

 

4,565

 

 

4,380,756

 

 

 

 

 

 




 

 

 

 

 

 

6,767,916

 









Ohio — 1.6%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB,
Asset-Backed, Senior Series A-2, 5.13%, 6/01/24

 

 

3,350

 

 

2,579,332

 

State of Ohio, RB, Ford Motor Co. Project, AMT, 5.75%,
4/01/35

 

 

4,880

 

 

4,493,358

 

 

 

 

 

 




 

 

 

 

 

 

7,072,690

 









Pennsylvania — 7.3%

 

 

 

 

 

 

 

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

 

 

5,345

 

 

3,972,457

 

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

 

 

 

 

 

 

 

6.13%, 1/01/25

 

 

1,360

 

 

1,275,503

 

6.25%, 1/01/35

 

 

1,550

 

 

1,355,165

 

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

 

 

6,165

 

 

5,996,572

 

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

 

 

 

 

 

 

 

6.25%, 7/01/26

 

 

1,160

 

 

1,104,796

 

6.50%, 7/01/40

 

 

1,665

 

 

1,548,234

 

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

 

 

2,330

 

 

1,952,866

 

Pennsylvania Economic Development Financing Authority,
RB, National Gypsum Co., Series A, AMT, 6.25%,
11/01/27

 

 

3,250

 

 

2,687,328

 

Philadelphia Authority for Industrial Development,
RB, AMT:

 

 

 

 

 

 

 

Commercial Development, 7.75%, 12/01/17

 

 

8,000

 

 

8,003,840

 

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

 

 

3,870

 

 

3,599,642

 

 

 

 

 

 




 

 

 

 

 

 

31,496,403

 









Puerto Rico — 0.8%

 

 

 

 

 

 

 

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

 

 

2,650

 

 

2,764,745

 

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

 

 

4,445

 

 

683,285

 

 

 

 

 

 




 

 

 

 

 

 

3,448,030

 









Rhode Island — 0.8%

 

 

 

 

 

 

 

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

 

 

4,245

 

 

3,396,764

 









South Carolina — 0.3%

 

 

 

 

 

 

 

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

 

 

1,175

 

 

1,109,306

 









Tennessee — 0.3%

 

 

 

 

 

 

 

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

 

 

5,820

 

 

1,010,410

 

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

 

 

600

 

 

483,702

 

 

 

 

 

 




 

 

 

 

 

 

1,494,112

 









Texas — 12.2%

 

 

 

 

 

 

 

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

 

 

5,040

 

 

4,852,966

 

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

 

 

5,080

 

 

2,135,835

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Texas (concluded)

 

 

 

 

 

 

 

Central Texas Regional Mobility Authority, RB:

 

 

 

 

 

 

 

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

 

$

1,000

 

$

296,330

 

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

 

 

2,000

 

 

545,360

 

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

 

 

1,170

 

 

293,237

 

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

 

 

2,000

 

 

460,180

 

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

 

 

3,500

 

 

737,030

 

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

 

 

3,690

 

 

714,642

 

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

 

 

4,000

 

 

715,040

 

Senior Lien, 5.75%, 1/01/25

 

 

675

 

 

666,144

 

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

 

 

4,550

 

 

4,457,908

 

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

 

 

1,000

 

 

1,150,790

 

Harris County Health Facilities Development Corp.,
Refunding RB, Memorial Hermann Healthcare System,
Series B:

 

 

 

 

 

 

 

7.13%, 12/01/31

 

 

1,500

 

 

1,629,135

 

7.25%, 12/01/35

 

 

1,110

 

 

1,204,061

 

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

 

 

860

 

 

845,320

 

Love Field Airport Modernization Corp., RB, Southwest
Airlines Co. Project, 5.25%, 11/01/40

 

 

4,600

 

 

4,005,910

 

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

 

 

2,090

 

 

2,172,492

 

North Texas Tollway Authority, RB:

 

 

 

 

 

 

 

CAB, Special Projects System, Series B, 7.55%,
9/01/37 (a)

 

 

2,110

 

 

345,091

 

Toll, 2nd Tier, Series F, 6.13%, 1/01/31

 

 

4,425

 

 

4,520,757

 

Sabine River Authority Texas, Refunding RB, TXU
Electric Co. Project, Series A, Mandatory Put Bonds,
5.50%, 5/01/22 (f)

 

 

3,730

 

 

3,652,976

 

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

 

 

 

 

 

 

 

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

 

 

1,745

 

 

1,692,353

 

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

 

 

4,200

 

 

4,034,478

 

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

 

 

 

 

 

 

 

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

 

 

4,455

 

 

4,539,110

 

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

 

 

3,935

 

 

4,036,917

 

Texas State Public Finance Authority, Refunding, ERB,
KIPP Inc., Series A (ACA):

 

 

 

 

 

 

 

5.00%, 2/15/28

 

 

2,825

 

 

2,492,893

 

5.00%, 2/15/36

 

 

850

 

 

698,428

 

 

 

 

 

 




 

 

 

 

 

 

52,895,383

 









U.S. Virgin Islands — 1.1%

 

 

 

 

 

 

 

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

 

 

5,100

 

 

4,933,587

 









Utah — 0.9%

 

 

 

 

 

 

 

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

 

 

3,900

 

 

3,909,048

 









Vermont — 0.3%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,416,896

 










 

 

 

See Notes to Financial Statements.


16

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Virginia — 1.0%

 

 

 

 

 

 

 

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

 

$

3,635

 

$

3,518,716

 

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

 

 

 

 

 

 

 

5.13%, 10/01/37

 

 

585

 

 

501,725

 

5.13%, 10/01/42

 

 

450

 

 

378,000

 

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

 

 

40

 

 

33,066

 

 

 

 

 

 




 

 

 

 

 

 

4,431,507

 









Wisconsin — 2.1%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

3,175

 

 

2,524,792

 

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

 

 

6,235

 

 

5,332,110

 

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

 

 

 

 

 

 

 

7.25%, 9/15/29

 

 

425

 

 

419,942

 

7.63%, 9/15/39

 

 

855

 

 

851,640

 

 

 

 

 

 




 

 

 

 

 

 

9,128,484

 









Total Municipal Bonds — 91.8%

 

 

 

 

 

398,079,942

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

 

 

 

 

 

 









District of Columbia — 1.7%

 

 

 

 

 

 

 

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

 

 

6,681

 

 

7,311,551

 









Florida — 3.3%

 

 

 

 

 

 

 

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

 

 

15,000

 

 

14,260,050

 









New York — 1.8%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, Water &
Sewer, RB, Second General Resolution, Series EE,
5.50%, 6/15/43

 

 

7,605

 

 

7,932,877

 









Virginia — 3.3%

 

 

 

 

 

 

 

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

 

 

14,400

 

 

14,406,336

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 10.1%

 

 

 

 

 

43,910,814

 









Total Long-Term Investments
(Cost — $463,033,218) — 101.9%

 

 

 

 

 

441,990,756

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








FFI Institutional Tax-Exempt Fund, 0.23% (i)(j)

 

 

1,560,240

 

 

1,560,240

 









 

 

 

 

 

 

 

 

 

 

Par
(000)

 

 

 







Michigan Finance Authority, RB, SAN, Detroit Schools,
Series A-1, 6.45%, 2/02/12

 

$

3,400

 

 

3,421,318

 









Total Short-Term Securities
(Cost — $4,960,240) — 1.1%

 

 

 

 

 

4,981,558

 









Total Investments (Cost — $467,993,458*) — 103.0%

 

 

 

 

 

446,972,314

 

Other Assets Less Liabilities — 2.3%

 

 

 

 

 

10,036,880

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (5.3)%

 

 

 

 

 

(23,118,383

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

433,890,811

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

444,123,855

 

 

 




Gross unrealized appreciation

 

$

14,160,930

 

Gross unrealized depreciation

 

 

(34,423,563

)

 

 




Net unrealized depreciation

 

$

(20,262,633

)

 

 





 

 

(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)

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

 

 

(d)

Non-income producing security.

 

 

(e)

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.

 

 

(f)

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

 

 

(g)

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


 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Appreciation

 







Goldman Sachs

 

$

1,230,425

 

$

2,887

 










 

 

(h)

Securities represent bonds transferred to a TOB 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 TOBs.

 

 

(i)

Investments in companies considered to be an affiliate of the Fund during the year, 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
April 30,
2011

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

149,925

 

 

1,410,315

 

 

1,560,240

 

$

4,801

 
















 

 

(j)

Represents the current yield as of report date.

 

 

Financial futures contracts sold as of April 30, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Contracts

 

 

Issue

 

 

Exchange

 

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 


















116

 

 

10-Year U.S.
Treasury Note

 

 

Chicago Board
of Trade

 

 

June 2011

 

$

13,747,592

 

$

(304,720

)



















 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

APRIL 30, 2011

17




 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad level for financial statement purposes 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 and derivative financial instruments)

 

 

 

 

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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of April 30, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

 

$

441,990,756

 

 

 

$

441,990,756

 

Short-Term
Securities

 

$

1,560,240

 

 

3,421,318

 

 

 

 

4,981,558

 

 

 













Total

 

$

1,560,240

 

$

445,412,074

 

 

 

$

446,972,314

 

 

 














 

 

 

 

1

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Derivative Financial
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

(304,720

)

 

 

 

 

$

(304,720

)
















 

 

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

See Notes to Financial Statements.


18

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Schedule of Investments April 30, 2011

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 1.4%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/22

 

$

2,750

 

$

2,414,940

 

4.75%, 1/01/25

 

 

2,200

 

 

1,771,352

 

 

 

 

 

 




 

 

 

 

 

 

4,186,292

 









Alaska — 0.6%

 

 

 

 

 

 

 

Alaska Housing Finance Corp., RB, General Housing,
Series B (NPFGC), 5.25%, 12/01/30

 

 

400

 

 

402,172

 

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

 

 

1,200

 

 

1,330,080

 

 

 

 

 

 




 

 

 

 

 

 

1,732,252

 









Arizona — 1.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

3,250

 

 

3,296,735

 

5.25%, 10/01/28

 

 

1,000

 

 

1,026,650

 

5.00%, 10/01/29

 

 

400

 

 

401,620

 

 

 

 

 

 




 

 

 

 

 

 

4,725,005

 









California — 23.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.65%, 10/01/24

 

 

10,185

 

 

8,160,833

 

5.57%, 10/01/25

 

 

6,000

 

 

4,717,260

 

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

 

 

5,000

 

 

5,545,400

 

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

 

 

600

 

 

585,792

 

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

 

 

2,400

 

 

384,888

 

California Health Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

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

 

 

550

 

 

514,404

 

Sutter Health, Series B, 5.88%, 8/15/31

 

 

1,200

 

 

1,228,776

 

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

 

 

1,405

 

 

1,284,620

 

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

 

 

2,000

 

 

1,817,360

 

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

 

 

850

 

 

859,614

 

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

 

 

1,420

 

 

1,409,577

 

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

 

 

900

 

 

869,697

 

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

 

 

1,300

 

 

1,289,808

 

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

 

 

5,160

 

 

5,233,633

 

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

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

2,965

 

 

3,011,491

 

5.00%, 10/01/36

 

 

1,655

 

 

1,659,799

 

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

 

 

5,000

 

 

4,312,400

 

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

 

 

 

 

 

 

 

5.00%, 2/01/30

 

 

1,500

 

 

1,536,030

 

5.00%, 2/01/31

 

 

900

 

 

918,414

 

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

 

 

1,750

 

 

1,415,243

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 

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

 

$

4,150

 

$

4,155,893

 

San Diego Unified School District California, GO, CAB,
Election of 2008, Series C, 6.85%, 7/01/38 (b)

 

 

1,600

 

 

253,280

 

San Joaquin County Transportation Authority, RB,
Limited Tax, Measure K, Series A, 6.00%, 3/01/36

 

 

2,175

 

 

2,293,798

 

San Mateo County Community College District, GO,
CAB, Election of 2001, Series C (NPFGC), 5.53%, 9/01/30 (b)

 

 

12,740

 

 

3,908,632

 

State of California, GO:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

20

 

 

20,003

 

5.13%, 6/01/31

 

 

60

 

 

59,737

 

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

 

 

6,145

 

 

5,993,649

 

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

 

 

2,325

 

 

2,324,814

 

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

 

 

5,035

 

 

5,028,454

 

 

 

 

 

 




 

 

 

 

 

 

70,793,299

 









Colorado — 1.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

1,200

 

 

1,098,540

 

5.50%, 12/01/33

 

 

675

 

 

588,404

 

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

 

 

315

 

 

327,109

 

Regional Transportation District, COP, Series A,
5.38%, 6/01/31

 

 

2,000

 

 

2,029,340

 

 

 

 

 

 




 

 

 

 

 

 

4,043,393

 









District of Columbia — 1.7%

 

 

 

 

 

 

 

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

 

 

5,530

 

 

5,154,790

 









Florida — 14.6%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,579,248

 

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

 

 

4,000

 

 

3,958,360

 

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

 

 

3,000

 

 

3,080,640

 

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

 

 

850

 

 

860,906

 

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

 

 

3,000

 

 

2,871,900

 

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

 

 

1,400

 

 

1,461,670

 

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

 

 

4,950

 

 

4,803,678

 

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

 

 

9,900

 

 

8,625,078

 

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

 

 

4,200

 

 

4,139,142

 

Highlands County Health Facilities Authority, RB,
Adventist Health System/Sunbelt, Series B, 6.00%,
11/15/37

 

 

1,450

 

 

1,482,987

 

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

 

 

1,750

 

 

1,691,322

 


 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2011

19




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Florida (concluded)

 

 

 

 

 

 

 

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

 

$

2,000

 

$

1,922,600

 

Orange County School Board, COP, Series A:

 

 

 

 

 

 

 

(AGC), 5.50%, 8/01/34

 

 

3,550

 

 

3,577,761

 

(NPFGC), 5.00%, 8/01/31

 

 

2,000

 

 

1,977,260

 

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

 

 

275

 

 

274,783

 

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

 

 

2,000

 

 

2,081,920

 

 

 

 

 

 




 

 

 

 

 

 

44,389,255

 









Georgia — 4.1%

 

 

 

 

 

 

 

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

 

 

2,300

 

 

2,312,765

 

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

 

 

825

 

 

793,262

 

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

 

 

7,475

 

 

9,384,713

 

 

 

 

 

 




 

 

 

 

 

 

12,490,740

 









Illinois — 22.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,231,600

 

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

 

 

1,000

 

 

1,008,140

 

Chicago Park District, GO, Harbor Facilities, Series C,
5.25%, 1/01/40

 

 

550

 

 

547,536

 

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

 

 

 

 

 

 

 

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

 

 

5,670

 

 

5,813,167

 

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

 

 

2,500

 

 

2,529,200

 

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

 

 

2,000

 

 

1,906,460

 

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

 

 

9,000

 

 

9,052,200

 

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

 

 

2,460

 

 

2,648,387

 

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

 

 

1,350

 

 

1,350,972

 

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

 

 

1,000

 

 

987,880

 

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

 

 

20,120

 

 

20,000,890

 

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

 

 

9,950

 

 

2,274,271

 

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

 

 

 

 

 

 

 

5.83%, 6/15/27

 

 

1,300

 

 

498,693

 

6.25%, 6/15/44

 

 

3,450

 

 

368,150

 

Railsplitter Tobacco Settlement Authority, RB, 6.00%,
6/01/28

 

 

675

 

 

649,174

 

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

 

 

9,480

 

 

11,238,540

 

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

 

 

4,400

 

 

4,256,736

 

 

 

 

 

 




 

 

 

 

 

 

68,361,996

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Indiana — 1.0%

 

 

 

 

 

 

 

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

 

$

400

 

$

404,100

 

Indianapolis Local Public Improvement Bond Bank,
Refunding RB, Waterworks Project, Series A (AGC):

 

 

 

 

 

 

 

5.25%, 1/01/29

 

 

600

 

 

622,578

 

5.50%, 1/01/38

 

 

1,825

 

 

1,854,510

 

 

 

 

 

 




 

 

 

 

 

 

2,881,188

 









Iowa — 1.9%

 

 

 

 

 

 

 

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

 

 

5,725

 

 

5,756,488

 









Louisiana — 0.4%

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,349,975

 









Massachusetts — 2.5%

 

 

 

 

 

 

 

Massachusetts HFA, RB, AMT (AGM):

 

 

 

 

 

 

 

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

 

 

1,700

 

 

1,611,753

 

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

 

 

1,600

 

 

1,509,664

 

Massachusetts HFA, Refunding RB, AMT:

 

 

 

 

 

 

 

Rental Housing, Series A (AGM), 5.15%, 7/01/26

 

 

655

 

 

669,076

 

Series C, 5.35%, 12/01/42

 

 

1,150

 

 

1,050,640

 

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

 

 

2,700

 

 

2,747,655

 

 

 

 

 

 




 

 

 

 

 

 

7,588,788

 









Michigan — 5.1%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Series B:

 

 

 

 

 

 

 

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

 

 

400

 

 

425,720

 

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

 

 

200

 

 

224,126

 

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

 

 

700

 

 

816,669

 

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

 

 

3,600

 

 

3,203,496

 

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

 

 

2,500

 

 

2,555,725

 

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

 

 

425

 

 

395,900

 

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

 

 

1,500

 

 

1,507,710

 

Michigan State HDA, RB, Series C, AMT, 5.50%,
12/01/28

 

 

1,100

 

 

1,059,157

 

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

 

 

 

 

 

 

 

Series A, 5.50%, 6/01/30

 

 

1,300

 

 

1,245,140

 

Series C, 5.45%, 12/15/32

 

 

4,300

 

 

4,045,483

 

 

 

 

 

 




 

 

 

 

 

 

15,479,126

 









Minnesota — 0.9%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,663,700

 









Nevada — 5.2%

 

 

 

 

 

 

 

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

 

 

3,100

 

 

2,675,052

 

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

 

 

850

 

 

902,717

 


 

 

 

See Notes to Financial Statements.

 




20

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Nevada (concluded)

 

 

 

 

 

 

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

$

3,800

 

$

3,566,338

 

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

 

 

75

 

 

60,991

 

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

 

 

1,200

 

 

1,060,992

 

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

 

 

1,500

 

 

1,421,925

 

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

 

 

3,200

 

 

2,898,304

 

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

 

 

1,475

 

 

1,471,784

 

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

 

 

1,600

 

 

1,660,752

 

 

 

 

 

 




 

 

 

 

 

 

15,718,855

 









New Jersey — 9.1%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

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

 

 

600

 

 

523,998

 

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

 

 

305

 

 

270,169

 

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

 

 

9,325

 

 

9,337,775

 

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

 

 

7,800

 

 

7,748,910

 

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

 

 

2,250

 

 

2,258,010

 

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

 

 

2,000

 

 

2,108,560

 

New Jersey EDA, Refunding RB, School Facilities
Construction, Series N-1 (AGM), 5.50%, 9/01/25

 

 

5,000

 

 

5,348,700

 

 

 

 

 

 




 

 

 

 

 

 

27,596,122

 









New York — 3.9%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,615,680

 

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

 

 

4,000

 

 

4,496,000

 

New York City Transitional Finance Authority, RB, Fiscal
2009, Series S-4:

 

 

 

 

 

 

 

5.50%, 1/15/33

 

 

1,600

 

 

1,662,992

 

5.50%, 1/15/34

 

 

2,750

 

 

2,852,905

 

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

 

 

1,200

 

 

1,296,024

 

 

 

 

 

 




 

 

 

 

 

 

11,923,601

 









North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

 

1,700

 

 

1,375,096

 









Ohio — 0.5%

 

 

 

 

 

 

 

County of Lucas Ohio, Refunding RB, Promedica
Healthcare, Series A, 6.50%, 11/15/37

 

 

530

 

 

552,991

 

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

 

 

1,025

 

 

964,013

 

 

 

 

 

 




 

 

 

 

 

 

1,517,004

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Pennsylvania — 1.4%

 

 

 

 

 

 

 

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

 

$

1,500

 

$

1,458,585

 

Pennsylvania Turnpike Commission, RB:

 

 

 

 

 

 

 

CAB, Sub-Series E, 6.48%, 12/01/38 (a)

 

 

2,750

 

 

1,899,040

 

Subordinate, Special Motor License Fund, 6.00%,
12/01/36

 

 

575

 

 

617,895

 

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

 

 

400

 

 

413,372

 

 

 

 

 

 




 

 

 

 

 

 

4,388,892

 









Puerto Rico — 1.9%

 

 

 

 

 

 

 

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

 

 

3,200

 

 

3,316,864

 

Puerto Rico Sales Tax Financing Corp., Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.69%, 8/01/41 (b)

 

 

8,500

 

 

1,135,600

 

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

 

 

1,180

 

 

1,183,186

 

 

 

 

 

 




 

 

 

 

 

 

5,635,650

 









Rhode Island — 0.8%

 

 

 

 

 

 

 

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

 

 

2,375

 

 

2,548,541

 









South Carolina — 1.4%

 

 

 

 

 

 

 

South Carolina Jobs-EDA, Refunding RB, Palmetto
Health, Series A (AGM), 6.50%, 8/01/39 (e)

 

 

240

 

 

243,557

 

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

 

 

1,000

 

 

1,048,340

 

South Carolina Transportation Infrastructure Bank, RB,
Series A, 5.25%, 10/01/40

 

 

3,000

 

 

2,960,040

 

 

 

 

 

 




 

 

 

 

 

 

4,251,937

 









Tennessee — 1.8%

 

 

 

 

 

 

 

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

 

 

600

 

 

103,806

 

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

 

 

5,000

 

 

5,497,850

 

 

 

 

 

 




 

 

 

 

 

 

5,601,656

 









Texas — 12.4%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.00%, 11/15/35

 

 

2,100

 

 

2,300,193

 

5.38%, 11/15/38

 

 

1,350

 

 

1,391,270

 

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

 

 

13,000

 

 

12,465,960

 

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

 

 

4,475

 

 

2,339,664

 

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

 

 

1,725

 

 

1,775,543

 

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

 

 

 

 

 

 

 

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

 

 

3,800

 

 

3,841,914

 

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

 

 

4,015

 

 

4,111,159

 

North Texas Tollway Authority, Refunding RB, First Tier:

 

 

 

 

 

 

 

Series A, 6.00%, 1/01/28

 

 

2,795

 

 

2,951,017

 

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

 

 

1,600

 

 

1,553,936

 

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

 

 

5,150

 

 

4,827,455

 

 

 

 

 

 




 

 

 

 

 

 

37,558,111

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2011

21




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Utah — 1.7%

 

 

 

 

 

 

 

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

 

$

5,000

 

$

5,056,450

 









Virginia — 0.5%

 

 

 

 

 

 

 

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

 

 

1,530

 

 

1,530,536

 









Washington — 1.4%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

900

 

 

799,119

 

5.25%, 10/01/39

 

 

625

 

 

576,556

 

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

 

 

2,800

 

 

2,785,272

 

 

 

 

 

 




 

 

 

 

 

 

4,160,947

 









Wisconsin — 0.4%

 

 

 

 

 

 

 

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

 

 

1,375

 

 

1,293,518

 









Total Municipal Bonds — 125.8%

 

 

 

 

 

381,753,203

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

 

 

 

 

 

 









Arizona — 0.4%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,222,488

 









California — 5.5%

 

 

 

 

 

 

 

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

 

 

959

 

 

957,023

 

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

 

 

2,500

 

 

2,480,400

 

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

 

 

7,458

 

 

7,482,947

 

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

 

 

404

 

 

410,538

 

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

 

 

2,810

 

 

2,813,288

 

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

 

 

1,605

 

 

1,608,290

 

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

 

 

840

 

 

893,869

 

 

 

 

 

 




 

 

 

 

 

 

16,646,355

 









Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

900

 

 

900,859

 









District of Columbia — 1.0%

 

 

 

 

 

 

 

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

 

 

1,005

 

 

1,093,058

 

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

 

 

1,770

 

 

1,937,342

 

 

 

 

 

 




 

 

 

 

 

 

3,030,400

 









Florida — 6.0%

 

 

 

 

 

 

 

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

 

 

7,500

 

 

7,285,500

 

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

 

 

1,349

 

 

1,361,360

 

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

 

 

10,000

 

 

9,613,000

 

 

 

 

 

 




 

 

 

 

 

 

18,259,860

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

Par
(000)

 

Value

 







Georgia — 5.7%

 

 

 

 

 

 

 

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

 

$

17,356

 

$

17,369,826

 









Illinois — 0.6%

 

 

 

 

 

 

 

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

 

 

1,880

 

 

1,900,429

 









Louisiana — 1.8%

 

 

 

 

 

 

 

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

 

 

5,400

 

 

5,400,000

 









Massachusetts — 3.6%

 

 

 

 

 

 

 

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

 

 

10,600

 

 

10,857,853

 









Nevada — 3.5%

 

 

 

 

 

 

 

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

 

 

3,778

 

 

3,989,397

 

Clark County Water Reclamation District, GO, Series B:

 

 

 

 

 

 

 

5.50%, 7/01/29

 

 

4,499

 

 

4,771,549

 

5.75%, 7/01/34

 

 

1,829

 

 

1,971,237

 

 

 

 

 

 




 

 

 

 

 

 

10,732,183

 









New Hampshire — 2.5%

 

 

 

 

 

 

 

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

 

 

7,390

 

 

7,557,162

 









New York — 1.9%

 

 

 

 

 

 

 

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

 

 

1,260

 

 

1,351,563

 

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

 

 

3,100

 

 

3,118,321

 

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

 

 

1,300

 

 

1,330,017

 

 

 

 

 

 




 

 

 

 

 

 

5,799,901

 









Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

580

 

 

576,978

 









South Carolina — 2.8%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 12/01/28

 

 

3,120

 

 

3,184,802

 

5.25%, 12/01/29

 

 

2,765

 

 

2,812,171

 

5.25%, 12/01/30

 

 

1,010

 

 

1,023,080

 

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

 

 

1,275

 

 

1,336,633

 

 

 

 

 

 




 

 

 

 

 

 

8,356,686

 









Texas — 0.8%

 

 

 

 

 

 

 

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

 

 

2,200

 

 

2,296,690

 









Virginia — 0.1%

 

 

 

 

 

 

 

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

 

 

350

 

 

351,096

 









Washington — 1.4%

 

 

 

 

 

 

 

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

 

 

4,004

 

 

4,077,605

 









Wisconsin — 0.4%

 

 

 

 

 

 

 

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

 

 

1,430

 

 

1,308,634

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 38.5%

 

 

 

 

 

116,645,005

 









Total Long-Term Investments
(Cost — $506,317,873) — 164.3%

 

 

 

 

 

498,398,208










 

 

 

See Notes to Financial Statements.

 




22

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 







FFI Institutional Tax-Exempt Fund, 0.23% (g)(h)

 

 

3,470,954

 

$

3,470,954

 









Total Short-Term Securities
(Cost — $3,470,954) — 1.1%

 

 

 

 

 

3,470,954

 









Total Investments (Cost — $509,788,827*) — 165.4%

 

 

 

 

 

501,869,162

 

Other Assets Less Liabilities — 1.9%

 

 

 

 

 

5,624,385

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (20.3)%

 

 

 

 

 

(61,641,263

)

AMPS, at Redemption Value — (47.0)%

 

 

 

 

 

(142,588,554

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

303,263,730

 

 

 

 

 

 





 

 

 


*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

448,710,246

 

 

 

 




 

Gross unrealized appreciation

 

$

8,551,270

 

 

Gross unrealized depreciation

 

 

(16,975,261

)

 

 

 




 

Net unrealized depreciation

 

$

(8,423,991

)

 

 

 




 

 

 

 

 

 


 

 

(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

 

Value

 

Unrealized
Appreciation

 

 







 

Merrill Lynch and Co., Inc.

 

$

243,557

 

$

7,399

 

 










 

 

(f)

Securities represent bonds transferred to a TOB 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 TOBs.

 

 

(g)

Investments in companies considered to be an affiliate of the Fund during the year, 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
April 30,
2011

 

Income

 

 











 

FFI Institutional Tax-Exempt Fund

 

 

7,207,423

 

 

(3,736,469

)

 

3,470,954

 

$

9,877

 

 
















 

 

(h)

Represents the current yield as of report date.

 

 

Financial futures contracts sold as of April 30, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

 













 

170

 

10-Year U.S.

 

Chicago Board

 

June 2011

 

$

20,147,333

 

$

(446,573

)

 

 

 

Treasury Note

 

of Trade

 

 

 

 

 

 

 

 

 

 
















 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad levels for financial statement purposes 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 and derivative financial instruments)

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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of April 30, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

 

$

498,398,208

 

 

 

$

498,398,208

 

Short-Term
Securities

 

$

3,470,954

 

 

 

 

 

 

3,470,954

 

 

 













Total

 

$

3,470,954

 

$

498,398,208

 

 

 

$

501,869,162

 

 

 














 

 

 

 

1

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 















Derivative Financial
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

(446,573

)

 

 

 

 

$

(446,573

)
















 

 

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2011

23




 

 


 

 

Schedule of Investments April 30, 2011

BlackRock MuniHoldings Fund, Inc. (MHD)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Alabama — 1.9%

 

 

 

 

 

 

 

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

 

$

4,550

 

$

3,878,556

 









Arizona — 4.6%

 

 

 

 

 

 

 

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

 

 

2,200

 

 

1,449,778

 

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

 

 

2,215

 

 

1,836,612

 

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

 

 

770

 

 

767,682

 

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

 

 

1,370

 

 

1,381,508

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

2,000

 

 

1,722,780

 

5.00%, 12/01/37

 

 

2,360

 

 

1,955,944

 

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

 

 

260

 

 

260,328

 

 

 

 

 

 




 

 

 

 

 

 

9,374,632

 









Arkansas — 0.5%

 

 

 

 

 

 

 

County of Little River Arkansas, Refunding RB,
Georgia-Pacific Corp. Project, AMT, 5.60%, 10/01/26

 

 

1,155

 

 

1,061,491

 









California — 16.4%

 

 

 

 

 

 

 

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

 

 

255

 

 

248,640

 

California Health Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,530

 

 

1,430,978

 

Sutter Health, Series B, 6.00%, 8/15/42

 

 

2,200

 

 

2,231,042

 

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

 

 

820

 

 

847,134

 

California Statewide Communities Development
Authority, RB:

 

 

 

 

 

 

 

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

 

 

3,870

 

 

3,972,710

 

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

 

 

1,510

 

 

1,365,372

 

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

 

 

555

 

 

552,564

 

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

 

 

4,115

 

 

3,944,721

 

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

 

 

 

 

 

 

 

5.63%, 8/01/22

 

 

2,405

 

 

1,179,508

 

5.62%, 8/01/23

 

 

2,455

 

 

1,088,842

 

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

 

 

3,475

 

 

1,104,112

 

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

 

 

6,600

 

 

6,520,932

 

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

 

 

8,370

 

 

9,194,026

 

 

 

 

 

 




 

 

 

 

 

 

33,680,581

 









Colorado — 2.7%

 

 

 

 

 

 

 

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

 

 

1,455

 

 

1,281,084

 

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

 

 

1,525

 

 

1,392,996

 

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

 

 

1,000

 

 

896,030

 

Regional Transportation District, COP, Series A, 5.38%,
6/01/31

 

 

710

 

 

720,416

 

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

 

 

1,250

 

 

1,280,812

 

 

 

 

 

 




 

 

 

 

 

 

5,571,338

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Connecticut — 2.5%

 

 

 

 

 

 

 

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

 

$

2,700

 

$

1,756,620

 

Connecticut State Health & Educational Facility
Authority, RB:

 

 

 

 

 

 

 

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

 

 

955

 

 

913,820

 

Wesleyan University, 5.00%, 7/01/35

 

 

2,515

 

 

2,553,656

 

 

 

 

 

 




 

 

 

 

 

 

5,224,096

 









Delaware — 1.6%

 

 

 

 

 

 

 

County of Sussex Delaware, RB, NRG Energy, Inc.,
Indian River Project, 6.00%, 10/01/40

 

 

790

 

 

770,779

 

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

 

 

2,830

 

 

2,430,150

 

 

 

 

 

 




 

 

 

 

 

 

3,200,929

 









District of Columbia — 2.2%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, RB:

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

 

 

13,485

 

 

2,627,687

 

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

 

 

505

 

 

481,432

 

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

 

 

1,470

 

 

1,409,686

 

 

 

 

 

 




 

 

 

 

 

 

4,518,805

 









Florida — 8.6%

 

 

 

 

 

 

 

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

 

 

1,195

 

 

1,199,864

 

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

 

 

750

 

 

759,622

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

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

 

 

2,340

 

 

351,749

 

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

 

 

3,935

 

 

3,855,041

 

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

 

 

2,620

 

 

2,483,760

 

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

 

 

2,095

 

 

1,888,286

 

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

 

 

1,900

 

 

1,663,469

 

Mid-Bay Bridge Authority, RB, Series A, 7.25%,
10/01/40

 

 

1,570

 

 

1,563,437

 

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

 

 

2,400

 

 

2,206,344

 

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

 

 

665

 

 

385,986

 

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

 

 

1,495

 

 

1,263,365

 

 

 

 

 

 




 

 

 

 

 

 

17,620,923

 









Georgia — 2.0%

 

 

 

 

 

 

 

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

 

 

585

 

 

565,677

 

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

 

 

2,410

 

 

2,409,831

 

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

 

 

1,045

 

 

1,053,235

 

 

 

 

 

 




 

 

 

 

 

 

4,028,743

 









Guam — 0.7%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

440

 

 

440,277

 

6.75%, 11/15/29

 

 

630

 

 

628,192

 

7.00%, 11/15/39

 

 

430

 

 

439,391

 

 

 

 

 

 




 

 

 

 

 

 

1,507,860

 










 

 

 

See Notes to Financial Statements.

 




24

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Hawaii — 0.5%

 

 

 

 

 

 

 

State of Hawaii, Refunding RB, Series A, 5.25%,
7/01/30

 

$

945

 

$

953,146

 









Illinois — 7.7%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB, General, Third Lien,
Series C, 6.50%, 1/01/41 (c)

 

 

4,055

 

 

4,321,170

 

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

 

 

1,200

 

 

1,087,800

 

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

 

 

1,115

 

 

1,059,696

 

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

 

 

2,635

 

 

2,637,292

 

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

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

 

 

13,220

 

 

1,135,995

 

Series B, 5.00%, 6/15/50

 

 

2,190

 

 

1,910,972

 

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

 

 

1,740

 

 

1,483,159

 

Railsplitter Tobacco Settlement Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

930

 

 

897,338

 

6.00%, 6/01/28

 

 

800

 

 

769,392

 

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

 

 

440

 

 

425,674

 

 

 

 

 

 




 

 

 

 

 

 

15,728,488

 









Indiana — 1.8%

 

 

 

 

 

 

 

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

 

 

585

 

 

539,633

 

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

 

 

2,300

 

 

2,314,628

 

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

 

 

775

 

 

794,530

 

 

 

 

 

 




 

 

 

 

 

 

3,648,791

 









Kansas — 1.2%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB:

Adventist Health, 5.75%, 11/15/38

 

 

1,380

 

 

1,424,105

 

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

 

 

1,155

 

 

1,104,122

 

 

 

 

 

 




 

 

 

 

 

 

2,528,227

 









Kentucky — 0.7%

 

 

 

 

 

 

 

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

 

 

700

 

 

664,146

 

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

 

 

700

 

 

715,666

 

 

 

 

 

 




 

 

 

 

 

 

1,379,812

 









Louisiana — 2.2%

 

 

 

 

 

 

 

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

 

 

570

 

 

576,464

 

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

 

 

3,500

 

 

3,565,450

 

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

 

 

430

 

 

405,937

 

 

 

 

 

 




 

 

 

 

 

 

4,547,851

 









Maine — 0.1%

 

 

 

 

 

 

 

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

 

 

210

 

 

200,821

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Maryland — 2.1%

 

 

 

 

 

 

 

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

 

$

300

 

$

274,410

 

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

 

 

580

 

 

554,962

 

Maryland Health & Higher Educational Facilities
Authority, Refunding RB, Charlestown Community,
6.25%, 1/01/41

 

 

1,520

 

 

1,477,911

 

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

 

 

1,970

 

 

1,969,665

 

 

 

 

 

 




 

 

 

 

 

 

4,276,948

 









Massachusetts — 2.4%

 

 

 

 

 

 

 

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

 

 

1,165

 

 

1,115,825

 

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

 

 

2,900

 

 

2,553,682

 

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

 

 

1,255

 

 

1,174,065

 

 

 

 

 

 




 

 

 

 

 

 

4,843,572

 









Michigan — 2.3%

 

 

 

 

 

 

 

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

 

 

635

 

 

740,835

 

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

 

 

1,245

 

 

1,174,471

 

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

 

 

955

 

 

908,912

 

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

 

 

2,105

 

 

1,960,323

 

 

 

 

 

 




 

 

 

 

 

 

4,784,541

 









Minnesota — 1.1%

 

 

 

 

 

 

 

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

 

 

2,135

 

 

2,278,920

 









Mississippi — 0.8%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 7/01/17

 

 

350

 

 

389,851

 

5.25%, 7/01/19

 

 

435

 

 

472,989

 

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

 

 

675

 

 

687,892

 

 

 

 

 

 




 

 

 

 

 

 

1,550,732

 









Montana — 0.5%

 

 

 

 

 

 

 

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

 

 

1,075

 

 

980,895

 









New Hampshire — 1.5%

 

 

 

 

 

 

 

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

 

 

3,035

 

 

3,167,023

 









New Jersey — 6.6%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

 

5,385

 

 

4,894,157

 

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

 

 

1,000

 

 

1,007,660

 

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

 

 

2,950

 

 

2,688,896

 

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

 

 

3,500

 

 

3,531,290

 

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

 

 

1,770

 

 

1,491,119

 

 

 

 

 

 




 

 

 

 

 

 

13,613,122

 










 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2011

25




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


New York — 4.5%

 

 

 

 

 

 

 

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

 

$

1,000

 

$

944,630

 

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

 

 

1,450

 

 

1,518,425

 

Metropolitan Transportation Authority, Refunding RB:

 

 

 

 

 

 

 

Series B, 5.00%, 11/15/34

 

 

1,740

 

 

1,739,948

 

Transportation, Series D, 5.25%, 11/15/40

 

 

840

 

 

822,688

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

300

 

 

305,796

 

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

 

 

725

 

 

749,853

 

Series C, 6.80%, 6/01/28

 

 

535

 

 

551,633

 

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

 

 

850

 

 

850,799

 

Port Authority of New York & New Jersey, RB, JFK
International Air Terminal:

 

 

 

 

 

 

 

6.00%, 12/01/36

 

 

900

 

 

868,608

 

6.00%, 12/01/42

 

 

875

 

 

836,150

 

 

 

 

 

 




 

 

 

 

 

 

9,188,530

 









North Carolina — 0.4%

 

 

 

 

 

 

 

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

 

 

970

 

 

923,013

 









Pennsylvania — 7.4%

 

 

 

 

 

 

 

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

 

 

1,510

 

 

1,122,247

 

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

 

 

1,700

 

 

1,486,310

 

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

 

 

645

 

 

604,081

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

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

 

 

2,520

 

 

2,630,275

 

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

 

 

3,500

 

 

2,822,400

 

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

 

 

3,775

 

 

3,614,600

 

Philadelphia Authority for Industrial Development, RB:

 

 

 

 

 

 

 

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

 

 

1,105

 

 

1,008,722

 

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

 

 

725

 

 

725,348

 

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

 

 

1,245

 

 

1,136,523

 

 

 

 

 

 




 

 

 

 

 

 

15,150,506

 









Puerto Rico — 3.6%

 

 

 

 

 

 

 

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

 

 

2,070

 

 

2,025,743

 

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

 

 

1,205

 

 

986,642

 

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

 

 

3,860

 

 

4,027,138

 

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

 

 

2,975

 

 

457,317

 

 

 

 

 

 




 

 

 

 

 

 

7,496,840

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


South Carolina — 1.1%

 

 

 

 

 

 

 

South Carolina State Ports Authority, RB, 5.25%,
7/01/40

 

$

2,285

 

$

2,254,587

 









Tennessee — 2.7%

 

 

 

 

 

 

 

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

 

 

2,685

 

 

2,687,551

 

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

 

 

3,025

 

 

2,897,738

 

 

 

 

 

 




 

 

 

 

 

 

5,585,289

 









Texas — 12.8%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

979,360

 

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

 

 

3,655

 

 

3,680,219

 

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

 

 

1,050

 

 

1,088,283

 

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

 

 

1,070

 

 

1,083,814

 

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

 

 

1,910

 

 

2,071,853

 

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

 

 

820

 

 

806,003

 

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

 

 

3,500

 

 

3,204,005

 

North Texas Tollway Authority, RB:

 

 

 

 

 

 

 

CAB, Special Projects System, Series B, 7.55%,
9/01/37 (b)

 

 

1,400

 

 

228,970

 

Toll, Second Tier, Series F, 6.13%, 1/01/31

 

 

4,190

 

 

4,280,672

 

Sabine River Authority Texas, Refunding RB, TXU
Electric Co. Project, Series B, Mandatory Put Bonds,
AMT, 5.75%, 5/01/30 (d)

 

 

250

 

 

244,840

 

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

 

 

 

 

 

 

 

5.50%, 8/01/24

 

 

1,100

 

 

1,090,408

 

5.50%, 8/01/25

 

 

1,120

 

 

1,104,029

 

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

 

 

3,046,451

 

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

 

 

2,695

 

 

2,764,800

 

Texas State Public Finance Authority, Refunding ERB,
KIPP Inc., Series A (ACA), 5.00%, 2/15/36

 

 

875

 

 

718,970

 

 

 

 

 

 




 

 

 

 

 

 

26,392,677

 









U.S. Virgin Islands — 1.6%

 

 

 

 

 

 

 

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

 

 

3,460

 

 

3,347,100

 









Utah — 1.1%

 

 

 

 

 

 

 

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

 

 

2,525

 

 

2,339,615

 









Vermont — 1.1%

 

 

 

 

 

 

 

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

 

 

2,370

 

 

2,324,686

 









Virginia — 0.8%

 

 

 

 

 

 

 

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

 

 

1,565

 

 

1,565,548

 










 

 

 

See Notes to Financial Statements.

 




26

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Washington — 1.2%

 

 

 

 

 

 

 

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

 

$

1,255

 

$

1,122,045

 

Washington Health Care Facilities Authority, RB,
Swedish Health Services, Series A, 6.75%, 11/15/41

 

 

1,375

 

 

1,425,655

 

 

 

 

 

 




 

 

 

 

 

 

2,547,700

 









Wisconsin — 4.6%

 

 

 

 

 

 

 

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

 

 

4,980

 

 

5,352,803

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,710

 

 

1,608,665

 

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

 

 

825

 

 

656,048

 

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

 

 

1,755

 

 

1,763,600

 

 

 

 

 

 




 

 

 

 

 

 

9,381,116

 









Wyoming — 0.1%

 

 

 

 

 

 

 

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

 

 

210

 

 

203,580

 









Total Municipal Bonds — 118.2%

 

 

 

 

 

242,851,630

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 


California — 5.0%

 

 

 

 

 

 

 

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

 

 

2,270

 

 

2,344,179

 

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

 

 

1,845

 

 

1,892,785

 

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

 

 

1,620

 

 

1,607,299

 

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

 

 

748

 

 

760,256

 

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

 

 

3,494

 

 

3,555,325

 

 

 

 

 

 




 

 

 

 

 

 

10,159,844

 









Colorado — 2.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

2,580

 

 

2,417,434

 

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

 

 

1,650

 

 

1,552,832

 

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

 

 

1,490

 

 

1,491,422

 

 

 

 

 

 




 

 

 

 

 

 

5,461,688

 









Connecticut — 3.2%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

3,180

 

 

3,261,313

 

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

 

 

3,270

 

 

3,287,789

 

 

 

 

 

 




 

 

 

 

 

 

6,549,102

 









Georgia — 1.1%

 

 

 

 

 

 

 

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

 

 

2,259

 

 

2,277,053

 









Massachusetts — 2.5%

 

 

 

 

 

 

 

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

 

 

4,994

 

 

5,115,671

 









New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

1,409

 

 

1,459,956

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 


New York — 4.7%

 

 

 

 

 

 

 

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

 

$

1,110

 

$

1,156,856

 

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

 

 

4,035

 

 

4,040,067

 

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

 

 

4,240

 

 

4,538,924

 

 

 

 

 

 




 

 

 

 

 

 

9,735,847

 









North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

 

1,080

 

 

1,090,897

 









Ohio — 4.7%

 

 

 

 

 

 

 

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

 

 

9,650

 

 

9,567,879

 









Tennessee — 1.1%

 

 

 

 

 

 

 

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

 

 

2,250

 

 

2,270,250

 









Texas — 2.2%

 

 

 

 

 

 

 

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

 

 

4,620

 

 

4,606,001

 









Virginia — 8.2%

 

 

 

 

 

 

 

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

 

 

3,750

 

 

3,837,450

 

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

 

 

10,940

 

 

10,944,814

 

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

 

 

2,094

 

 

2,031,567

 

 

 

 

 

 




 

 

 

 

 

 

16,813,831

 









Washington — 0.9%

 

 

 

 

 

 

 

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

 

 

1,860

 

 

1,893,719

 









Wisconsin — 1.8%

 

 

 

 

 

 

 

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

 

 

3,959

 

 

3,623,909

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 39.3%

 

 

 

 

 

80,625,647

 









Total Long-Term Investments
(Cost — $330,906,016) — 157.5%

 

 

 

 

 

323,477,277

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 


FFI Institutional Tax-Exempt Fund, 0.23% (f)(g)

 

 

6,564,515

 

 

6,564,515

 









 

 

 

 

 

 

 

 

 

 

Par
(000)

 

 

 

 


Michigan Finance Authority, RB, SAN, Detroit Schools,
Series A-1, 6.45%, 2/20/12

 

$

2,255

 

 

2,269,138

 









Total Short-Term Securities
(Cost — $8,819,515) — 4.3%

 

 

 

 

 

8,833,653

 









Total Investments (Cost — $339,725,531*) — 161.8%

 

 

 

 

 

332,310,930

 

Other Assets Less Liabilities — 0.1%

 

 

 

 

 

282,373

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (21.2)%

 

 

 

 

 

(43,519,201

)

AMPS, at Redemption Value — (40.7)%

 

 

 

 

 

(83,705,661

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

205,368,441

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2011

27




 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund, Inc. (MHD)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

295,357,230

 

 

 




Gross unrealized appreciation

 

$

5,644,818

 

Gross unrealized depreciation

 

 

(12,178,740

)

 

 




Net unrealized depreciation

 

$

(6,533,922

)

 

 





 

 

(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)

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


 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Appreciation

 







CitiGroup Global Markets

 

$4,321,170

 

$43,632

 








 

 

(d)

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

 

 

(e)

Securities represent bonds transferred to a TOB 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 TOBs.

 

 

(f)

Investments in companies considered to be an affiliate of the Fund during the year, 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
April 30,
2011

 

Income

 


FFI Institutional Tax-Exempt Fund

 

 

3,354,654

 

 

3,209,861

 

 

6,564,515

 

$

5,499

 
















 

 

(g)

Represents the current yield as of report date.

 

 

Financial futures contracts sold as of April 30, 2011 were as follows:


 

 

 

 

 

 







Contracts

Issue

Exchange

Expiration
Date

Face
Value

Unrealized
Depreciation







    152

10-Year U.S.
Treasury Note

Chicago Board
of Trade

June 2011

$18,014,086

$(399,289)








 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad levels for financial statement purposes 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 and derivative financial instruments)

 

 

 

 

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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following tables summarize the inputs used as of April 30, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

323,477,277

 

 

 

$

323,477,277

 

Short-Term Securities

 

$

6,564,515

 

 

2,269,138

 

 

 

 

8,833,653

 

 

 













Total

 

$

6,564,515

 

$

325,746,415

 

 

 

$

332,310,930

 

 

 














 

 

 

 

1

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(399,289

)

 

 

 

 

$

(399,289

)
















 

 

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

See Notes to Financial Statements.

 




28

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Schedule of Investments April 30, 2011

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 1.9%

 

 

 

 

 

 

 

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

 

$

3,450

 

$

2,940,884

 









Arizona — 3.3%

 

 

 

 

 

 

 

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

 

 

2,060

 

 

1,708,090

 

Pima County IDA, RB, Arizona Charter Schools Project,
Series C, 6.75%, 7/01/31

 

 

935

 

 

845,072

 

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

 

 

990

 

 

998,316

 

Salt Verde Financial Corp., RB, Senior, 5.00%,
12/01/37

 

 

1,385

 

 

1,147,874

 

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

 

 

470

 

 

470,592

 

 

 

 

 

 




 

 

 

 

 

 

5,169,944

 









Arkansas — 0.5%

 

 

 

 

 

 

 

County of Little River Arkansas, Refunding RB,
Georgia-Pacific Corp. Project, AMT, 5.60%, 10/01/26

 

 

830

 

 

762,803

 









California — 21.2%

 

 

 

 

 

 

 

Benicia Unified School District, GO, CAB, Series A
(NPFGC), 5.63%, 8/01/20 (a)

 

 

2,000

 

 

1,189,040

 

California Health Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,110

 

 

1,038,161

 

Sutter Health, Series B, 6.00%, 8/15/42

 

 

1,585

 

 

1,607,364

 

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

 

 

600

 

 

619,854

 

California Statewide Communities Development Authority,
RB, John Muir Health, 5.13%, 7/01/39

 

 

1,090

 

 

985,600

 

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

 

 

400

 

 

398,244

 

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

 

 

2,975

 

 

2,851,894

 

Poway Unified School District, Special Tax Bonds,
Community Facilities District No. 6 Area, Series A,
6.13%, 9/01/33

 

 

1,750

 

 

1,659,245

 

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

 

 

2,525

 

 

802,268

 

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

 

 

4,770

 

 

4,712,855

 

San Marino Unified School District California, GO,
Series A (NPFGC) (a):

 

 

 

 

 

 

 

5.51%, 7/01/17

 

 

1,820

 

 

1,440,130

 

5.55%, 7/01/18

 

 

1,945

 

 

1,416,116

 

5.60%, 7/01/19

 

 

2,070

 

 

1,407,083

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

1,265

 

 

1,351,589

 

6.50%, 4/01/33

 

 

7,325

 

 

8,046,146

 

University of California, RB, Limited Project, Series B,
4.75%, 5/15/38

 

 

3,495

 

 

3,187,650

 

 

 

 

 

 




 

 

 

 

 

 

32,713,239

 









Colorado — 2.7%

 

 

 

 

 

 

 

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

 

 

1,055

 

 

928,896

 

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

 

 

1,100

 

 

1,004,784

 

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

 

 

860

 

 

770,586

 

Regional Transportation District, COP, Series A, 5.38%,
6/01/31

 

 

510

 

 

517,481

 

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

 

 

920

 

 

942,678

 

 

 

 

 

 




 

 

 

 

 

 

4,164,425

 










 

 

 

 

 

 

 

 

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

 

$

655,463

 

Wesleyan University, 5.00%, 7/01/35

 

 

1,875

 

 

1,903,819

 

 

 

 

 

 




 

 

 

 

 

 

2,559,282

 









Delaware — 1.5%

 

 

 

 

 

 

 

County of Sussex Delaware, RB, NRG Energy, Inc.,
Indian River Project, 6.00%, 10/01/40

 

 

570

 

 

556,132

 

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

 

 

2,050

 

 

1,760,355

 

 

 

 

 

 




 

 

 

 

 

 

2,316,487

 









District of Columbia — 2.0%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, RB:

 

 

 

 

 

 

 

CAB, Second Senior Lien, Series B (AGC),
7.08%, 10/01/34 (a)

 

 

10,170

 

 

2,138,242

 

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

 

 

255

 

 

243,099

 

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

 

 

745

 

 

714,433

 

 

 

 

 

 




 

 

 

 

 

 

3,095,774

 









Florida — 7.2%

 

 

 

 

 

 

 

Ballantrae Community Development District, Special
Assessment Bonds, 6.00%, 5/01/35

 

 

1,535

 

 

1,379,013

 

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

 

 

870

 

 

873,541

 

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

 

 

545

 

 

551,992

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

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

 

 

1,765

 

 

265,315

 

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

 

 

2,845

 

 

2,787,189

 

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

 

 

330

 

 

312,840

 

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

 

 

1,515

 

 

1,365,515

 

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

 

 

1,380

 

 

1,208,204

 

Mid-Bay Bridge Authority, RB, Series A, 7.25%,
10/01/40

 

 

1,135

 

 

1,130,256

 

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

 

 

490

 

 

284,411

 

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

 

 

1,185

 

 

1,001,396

 

 

 

 

 

 




 

 

 

 

 

 

11,159,672

 









Georgia — 1.9%

 

 

 

 

 

 

 

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

 

 

420

 

 

406,128

 

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

 

 

1,740

 

 

1,739,878

 

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

 

 

765

 

 

771,028

 

 

 

 

 

 




 

 

 

 

 

 

2,917,034

 









Guam — 0.7%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

320

 

 

320,202

 

6.75%, 11/15/29

 

 

455

 

 

453,694

 

7.00%, 11/15/39

 

 

275

 

 

281,006

 

 

 

 

 

 




 

 

 

 

 

 

1,054,902

 









Hawaii — 0.4%

 

 

 

 

 

 

 

State of Hawaii, Refunding RB, Series A, 5.25%, 7/01/30

 

 

680

 

 

685,862

 










 

 

 

 

See Notes to Financial Statements.

 

 





 

ANNUAL REPORT

APRIL 30, 2011

29




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Idaho — 1.3%

 

 

 

 

 

 

 

Power County Industrial Development Corp., RB,
FMC Corp. Project, AMT, 6.45%, 8/01/32

 

$

2,000

 

$

2,002,860

 









Illinois — 5.9%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB, General, Third Lien,
Series C, 6.50%, 1/01/41 (b)

 

 

2,935

 

 

3,127,654

 

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

 

 

1,000

 

 

906,500

 

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

 

 

800

 

 

760,320

 

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

 

 

 

 

 

 

 

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

 

 

9,555

 

 

821,061

 

Series B, 5.00%, 6/15/50

 

 

1,585

 

 

1,383,055

 

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

 

 

1,260

 

 

1,074,011

 

Railsplitter Tobacco Settlement Authority, RB, 5.50%,
6/01/23

 

 

675

 

 

651,294

 

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

 

 

315

 

 

304,744

 

 

 

 

 

 




 

 

 

 

 

 

9,028,639

 









Indiana — 1.7%

 

 

 

 

 

 

 

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

 

 

420

 

 

387,429

 

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

 

 

1,660

 

 

1,670,558

 

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

 

 

565

 

 

579,238

 

 

 

 

 

 




 

 

 

 

 

 

2,637,225

 









Kansas — 1.2%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Adventist Health, 5.75%, 11/15/38

 

 

1,000

 

 

1,031,960

 

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

 

 

785

 

 

750,421

 

 

 

 

 

 




 

 

 

 

 

 

1,782,381

 









Kentucky — 0.3%

 

 

 

 

 

 

 

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

 

 

510

 

 

483,878

 









Louisiana — 2.1%

 

 

 

 

 

 

 

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

 

 

420

 

 

424,763

 

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

 

 

2,500

 

 

2,546,750

 

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

 

 

310

 

 

292,652

 

 

 

 

 

 




 

 

 

 

 

 

3,264,165

 









Maine — 0.1%

 

 

 

 

 

 

 

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

 

 

150

 

 

143,444

 









Maryland — 1.6%

 

 

 

 

 

 

 

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

 

 

220

 

 

201,234

 

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

 

 

415

 

 

397,084

 

Maryland Health & Higher Educational Facilities
Authority, Refunding RB, Charlestown Community,
6.25%, 1/01/41

 

 

1,095

 

 

1,064,679

 

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

 

 

750

 

 

749,873

 

 

 

 

 

 




 

 

 

 

 

 

2,412,870

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Massachusetts — 4.4%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB,
Neville Communities, Series A (Ginnie Mae):

 

 

 

 

 

 

 

5.75%, 6/20/22

 

$

600

 

$

650,856

 

6.00%, 6/20/44

 

 

1,500

 

 

1,602,840

 

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

 

 

845

 

 

809,333

 

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

 

 

2,100

 

 

1,849,218

 

Massachusetts HFA, Refunding HRB, Series F,
AMT, 5.70%, 6/01/40

 

 

1,090

 

 

1,052,460

 

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

 

 

910

 

 

851,314

 

 

 

 

 

 




 

 

 

 

 

 

6,816,021

 









Michigan — 2.3%

 

 

 

 

 

 

 

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

 

 

460

 

 

536,668

 

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

 

 

960

 

 

905,616

 

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

 

 

690

 

 

656,701

 

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

 

 

1,520

 

 

1,415,530

 

 

 

 

 

 




 

 

 

 

 

 

3,514,515

 









Minnesota — 1.1%

 

 

 

 

 

 

 

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

 

 

1,540

 

 

1,643,811

 









Montana — 0.4%

 

 

 

 

 

 

 

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

 

 

620

 

 

565,725

 









New Hampshire — 1.0%

 

 

 

 

 

 

 

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

 

 

1,530

 

 

1,596,555

 









New Jersey — 5.2%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

 

3,025

 

 

2,749,271

 

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

 

 

2,000

 

 

2,015,320

 

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

 

 

2,500

 

 

2,522,350

 

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

 

 

920

 

 

775,045

 

 

 

 

 

 




 

 

 

 

 

 

8,061,986

 









New York — 6.7%

 

 

 

 

 

 

 

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

 

 

875

 

 

826,551

 

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

 

 

1,050

 

 

1,099,550

 

Metropolitan Transportation Authority, Refunding RB:

 

 

 

 

 

 

 

Series B, 5.00%, 11/15/34

 

 

1,270

 

 

1,269,962

 

Transportation, Series D, 5.25%, 11/15/40

 

 

610

 

 

597,428

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

350

 

 

356,762

 

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

 

 

525

 

 

542,997

 

Series C, 6.80%, 6/01/28

 

 

415

 

 

427,902

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

3,300

 

 

3,335,145

 

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

 

 

615

 

 

615,578

 










 

 

 

See Notes to Financial Statements.

 




30

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 

Port Authority of New York & New Jersey, RB, JFK
International Air Terminal:

 

 

 

 

 

 

 

6.00%, 12/01/36

 

$

650

 

$

627,328

 

6.00%, 12/01/42

 

 

630

 

 

602,028

 

 

 

 

 

 




 

 

 

 

 

 

10,301,231

 









North Carolina — 0.4%

 

 

 

 

 

 

 

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

 

 

705

 

 

670,850

 









Pennsylvania — 5.3%

 

 

 

 

 

 

 

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

 

 

1,095

 

 

813,815

 

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

 

 

325

 

 

304,382

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,830

 

 

1,910,081

 

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

 

 

2,750

 

 

2,273,892

 

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

 

 

2,455

 

 

2,350,687

 

Philadelphia Authority for Industrial Development, RB,
Commercial Development, AMT, 7.75%, 12/01/17

 

 

540

 

 

540,259

 

 

 

 

 

 




 

 

 

 

 

 

8,193,116

 









Puerto Rico — 4.8%

 

 

 

 

 

 

 

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

 

 

1,490

 

 

1,458,144

 

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

 

 

905

 

 

741,005

 

Puerto Rico Sales Tax Financing Corp., RB:

 

 

 

 

 

 

 

CAB, Series A, 6.41%, 8/01/35 (a)

 

 

10,000

 

 

1,938,400

 

First Sub-Series A, 6.50%, 8/01/44

 

 

2,790

 

 

2,910,807

 

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

 

 

2,145

 

 

329,729

 

 

 

 

 

 




 

 

 

 

 

 

7,378,085

 









South Carolina — 1.1%

 

 

 

 

 

 

 

South Carolina State Ports Authority, RB, 5.25%,
7/01/40

 

 

1,650

 

 

1,628,039

 









Tennessee — 1.3%

 

 

 

 

 

 

 

Hardeman County Correctional Facilities Corp.
Tennessee, RB, Series B, 7.38%, 8/01/17

 

 

2,200

 

 

2,067,230

 









Texas — 11.3%

 

 

 

 

 

 

 

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

 

 

500

 

 

489,680

 

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

 

 

2,500

 

 

2,517,250

 

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

 

 

760

 

 

787,710

 

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

 

 

535

 

 

541,907

 

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

 

 

1,380

 

 

1,496,941

 

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

 

 

590

 

 

579,929

 

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

 

 

2,765

 

 

2,531,164

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

North Texas Tollway Authority, RB:

 

 

 

 

 

 

 

CAB, Special Projects System, Series B, 7.55%,
9/01/37 (a)

 

$

1,015

 

$

166,003

 

Toll, Second Tier, Series F, 6.13%, 1/01/31

 

 

3,020

 

 

3,085,353

 

Sabine River Authority Texas, Refunding RB, TXU
Electric Co. Project, Series B, Mandatory Put Bonds,
AMT, 5.75%, 5/01/30 (c)

 

 

500

 

 

489,680

 

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

 

 

2,205,875

 

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

 

 

1,940

 

 

1,990,246

 

Texas State Public Finance Authority, Refunding ERB,
KIPP Inc., Series A (ACA), 5.00%, 2/15/36

 

 

625

 

 

513,550

 

 

 

 

 

 




 

 

 

 

 

 

17,395,288

 









U.S. Virgin Islands — 1.7%

 

 

 

 

 

 

 

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

 

 

2,680

 

 

2,592,552

 









Utah — 0.8%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,297,212

 









Vermont — 0.6%

 

 

 

 

 

 

 

Vermont Educational & Health Buildings Financing
Agency, RB, Developmental & Mental Health, Series A,
6.50%, 6/15/32

 

 

1,000

 

 

881,280

 









Virginia — 0.8%

 

 

 

 

 

 

 

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

 

 

1,175

 

 

1,175,411

 









Washington — 1.2%

 

 

 

 

 

 

 

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

 

 

930

 

 

831,476

 

Washington Health Care Facilities Authority, RB, Swedish
Health Services, Series A, 6.75%, 11/15/41

 

 

990

 

 

1,026,471

 

 

 

 

 

 




 

 

 

 

 

 

1,857,947

 









Wisconsin — 4.2%

 

 

 

 

 

 

 

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

 

 

3,620

 

 

3,890,993

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,235

 

 

1,161,814

 

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

 

 

1,360

 

 

1,366,664

 

 

 

 

 

 




 

 

 

 

 

 

6,419,471

 









Total Municipal Bonds — 113.7%

 

 

 

 

 

175,352,095

 










 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

 

 

 

 

 

 









California — 6.7%

 

 

 

 

 

 

 

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

 

 

1,640

 

 

1,693,592

 

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

 

 

1,335

 

 

1,369,577

 

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

 

 

1,170

 

 

1,160,827

 

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

 

 

553

 

 

562,589

 

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

 

 

5,519

 

 

5,615,277

 

 

 

 

 

 




 

 

 

 

 

 

10,401,862

 










 

 

 

 

See Notes to Financial Statements.

 

 





 

ANNUAL REPORT

APRIL 30, 2011

31




 

 



 

 

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 (d)

 

Par
(000)

 

Value

 









Colorado — 2.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

$

1,870

 

$

1,752,171

 

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

 

 

1,200

 

 

1,129,332

 

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

 

 

1,080

 

 

1,081,031

 

 

 

 

 

 




 

 

 

 

 

 

3,962,534

 









Connecticut — 3.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

2,300

 

 

2,358,811

 

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

 

 

2,370

 

 

2,382,893

 

 

 

 

 

 




 

 

 

 

 

 

4,741,704

 









Georgia — 1.1%

 

 

 

 

 

 

 

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

 

 

1,649

 

 

1,662,450

 









Massachusetts — 2.0%

 

 

 

 

 

 

 

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

 

 

2,999

 

 

3,072,475

 









New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

1,019

 

 

1,056,139

 









New York — 4.6%

 

 

 

 

 

 

 

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

 

 

810

 

 

844,192

 

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

 

 

2,910

 

 

2,913,654

 

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

 

 

3,200

 

 

3,425,603

 

 

 

 

 

 




 

 

 

 

 

 

7,183,449

 









North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

 

800

 

 

808,072

 









Ohio — 4.5%

 

 

 

 

 

 

 

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

 

 

6,980

 

 

6,920,600

 









Tennessee — 1.6%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,522,500

 









Texas — 2.2%

 

 

 

 

 

 

 

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

 

 

3,360

 

 

3,349,819

 









Virginia — 7.9%

 

 

 

 

 

 

 

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

 

 

2,730

 

 

2,793,663

 

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

 

 

7,900

 

 

7,903,476

 

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

 

 

1,553

 

 

1,505,988

 

 

 

 

 

 




 

 

 

 

 

 

12,203,127

 









Washington — 0.9%

 

 

 

 

 

 

 

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

 

 

1,365

 

 

1,389,746

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par
(000)

 

Value

 







Wisconsin — 1.7%

 

 

 

 

 

 

 

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

 

$

2,859

 

$

2,617,268

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 40.1%

 

 

 

 

 

61,891,745

 









Total Long-Term Investments
(Cost — $240,551,740) — 153.8%

 

 

 

 

 

237,243,840

 










 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.23% (e)(f)

 

 

3,999,689

 

 

3,999,689

 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Par
(000
)

 

 

 

 









Michigan Finance Authority, RB, SAN, Detroit Schools,
Series A-1, 6.45%, 2/02/12

 

$

1,630

 

 

1,640,220

 









Total Short-Term Securities
(Cost — $5,629,689) — 3.7%

 

 

 

 

 

5,639,909

 









Total Investments (Cost — $246,181,429*) — 157.5%

 

 

 

 

 

242,883,749

 

Other Assets Less Liabilities — 0.0%

 

 

 

 

 

70,681

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (21.8)%

 

 

 

 

 

(33,642,077

)

AMPS, at Redemption Value — (35.7)%

 

 

 

 

 

(55,053,584

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

154,258,769

 

 

 

 

 

 













 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

211,815,053

 

 

 




Gross unrealized appreciation

 

$

4,953,291

 

Gross unrealized depreciation

 

 

(7,501,779

)

 

 




Net unrealized depreciation

 

$

(2,548,488

)

 

 





 

 

(a)

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

 

 

(b)

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


 

 

 

 

 

 

 

 









Counterparty

 

Value

 

Unrealized
Appreciation

 







Citigroup Global Markets

 

$

3,127,654

 

$

31,581

 










 

 

(c)

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

 

 

(d)

Securities represent bonds transferred to a TOB 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 TOBs.

 

 

(e)

Investments in companies considered to be an affiliate of the Fund during the year, 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
April 30,
2011

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

607,735

 

 

3,391,954

 

 

3,999,689

 

$

3,240

 
















 

 

(f)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.

 




32

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund II, Inc. (MUH)


 

 

Financial futures contracts sold as of April 30, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 













114

 

10-Year U.S.
Treasury Note

 

Chicago Board
of Trade

 

June 2011

 

$

13,510,565

 

$

(299,467

)
















 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad levels for financial statement purposes 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 and derivative financial instruments.)

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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of April 30, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 















Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

237,243,840

 

 

 

$

237,243,840

 

Short-Term Securities

 

$

3,999,689

 

 

1,640,220

 

 

 

 

5,639,909

 

 

 













Total

 

$

3,999,689

 

$

238,884,060

 

 

 

$

242,883,749

 

 

 














 

 

 

 

1

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 















Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(299,467

)

 

 

 

 

$

(299,467

)
















 

 

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

 

See Notes to Financial Statements.

 

 





 

ANNUAL REPORT

APRIL 30, 2011

33




 

 


 

 

Schedule of Investments April 30, 2011

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 2.7%

 

 

 

 

 

 

 

Birmingham Special Care Facilities Financing Authority,
RB, Children’s Hospital (AGC), 6.00%, 6/01/39

 

$

2,330

 

$

2,436,970

 

County of Jefferson Alabama, RB, Series A, 5.50%,
1/01/22

 

 

2,170

 

 

1,905,607

 

 

 

 

 

 




 

 

 

 

 

 

4,342,577

 









Arizona — 0.5%

 

 

 

 

 

 

 

State of Arizona, COP, Department of Administration,
Series A (AGM), 5.25%, 10/01/28

 

 

715

 

 

734,055

 









Arkansas — 3.5%

 

 

 

 

 

 

 

Arkansas Development Finance Authority, Refunding RB,
Series C (NPFGC), 5.35%, 12/01/35

 

 

5,685

 

 

5,696,711

 









California — 21.2%

 

 

 

 

 

 

 

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

 

 

5,500

 

 

5,678,750

 

California Educational Facilities Authority, RB, University
of Southern California, Series A, 5.25%, 10/01/38

 

 

2,895

 

 

2,971,775

 

California Health Facilities Financing Authority,
Refunding RB, Sutter Health, Series B, 6.00%, 8/15/42

 

 

1,730

 

 

1,754,410

 

Central Unified School District, GO, Election of 2008,
Series A (AGC), 5.63%, 8/01/33

 

 

1,325

 

 

1,346,293

 

City of Sunnyvale California, Refunding RB, 5.25%,
4/01/40

 

 

1,605

 

 

1,623,169

 

City of Vista California, COP, Refunding, Community
Projects (NPFGC), 5.00%, 5/01/37

 

 

2,060

 

 

1,795,331

 

County of Sacramento California, RB, Senior Series A
(AGC), 5.50%, 7/01/41

 

 

2,100

 

 

2,087,568

 

Los Angeles Community College District California, GO,
Election of 2008, Series C, 5.25%, 8/01/39

 

 

1,500

 

 

1,515,210

 

Los Angeles Department of Water & Power, RB, Power
System, Sub-Series A-1, 5.25%, 7/01/38

 

 

1,575

 

 

1,598,373

 

Oceanside Unified School District California, GO,
Series A (AGC), 5.25%, 8/01/33

 

 

1,825

 

 

1,825,931

 

Oxnard Union High School District, GO, Refunding,
Election of 2004, Series A (AGM), 5.00%, 8/01/40

 

 

1,885

 

 

1,712,956

 

San Bernardino Community College District, GO,
Election of 2002, Series A, 6.25%, 8/01/33

 

 

1,250

 

 

1,368,650

 

San Pablo Joint Powers Financing Authority California,
Tax Allocation Bonds, Refunding, CAB (NPFGC) (a):

 

 

 

 

 

 

 

5.66%, 12/01/24

 

 

2,635

 

 

1,036,135

 

5.66%, 12/01/25

 

 

2,355

 

 

851,262

 

5.66%, 12/01/26

 

 

2,355

 

 

781,813

 

Santa Ana Unified School District, GO (NPFGC), 5.00%,
8/01/32

 

 

690

 

 

674,923

 

Schools Infrastructure Financing Agency, Special Tax
Bonds (AGM), 5.50%, 9/01/36

 

 

190

 

 

181,494

 

Ventura County Community College District, GO,
Election of 2002, Series C, 5.50%, 8/01/33

 

 

1,850

 

 

1,920,374

 

West Contra Costa Unified School District California, GO,
Election of 2000, Series C (NPFGC), 5.00%, 8/01/21

 

 

3,480

 

 

3,504,116

 

 

 

 

 

 




 

 

 

 

 

 

34,228,533

 









Colorado — 1.6%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Hospital,
NCMC Inc. Project, Series B (AGM), 6.00%, 5/15/26

 

 

1,900

 

 

2,049,302

 

Regional Transportation District, COP, Series A, 5.00%,
6/01/25

 

 

455

 

 

462,963

 

 

 

 

 

 




 

 

 

 

 

 

2,512,265

 









District of Columbia — 1.5%

 

 

 

 

 

 

 

District of Columbia, RB, Deed Tax, Housing Production
Trust Fund, Series A (NPFGC), 5.00%, 6/01/32

 

 

400

 

 

382,504

 

District of Columbia Water & Sewer Authority, RB,
Series A, 5.50%, 10/01/39

 

 

2,000

 

 

2,078,880

 

 

 

 

 

 




 

 

 

 

 

 

2,461,384

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Florida — 11.1%

 

 

 

 

 

 

 

City of Gainesville Florida, Refunding RB, Series C,
5.25%, 10/01/34

 

$

2,500

 

$

2,546,400

 

County of Miami-Dade Florida, RB (AGM):

 

 

 

 

 

 

 

Miami International Airport, Series A, AMT,
5.50%, 10/01/41

 

 

3,895

 

 

3,660,093

 

Water & Sewer System, 5.00%, 10/01/39

 

 

910

 

 

883,100

 

Jacksonville Port Authority, RB, AMT (AGC), 6.00%,
11/01/38

 

 

2,215

 

 

2,228,888

 

Orange County School Board, COP, Series A (AGC),
5.50%, 8/01/34

 

 

4,645

 

 

4,681,324

 

Tohopekaliga Water Authority, Refunding RB, Series A,
5.25%, 10/01/36

 

 

3,995

 

 

4,023,524

 

 

 

 

 

 




 

 

 

 

 

 

18,023,329

 









Georgia — 4.2%

 

 

 

 

 

 

 

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

 

 

3,495

 

 

3,514,397

 

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

 

 

2,075

 

 

1,995,175

 

Metropolitan Atlanta Rapid Transit Authority, RB, Third
Indenture, Series B (AGM), 5.00%, 7/01/34

 

 

1,260

 

 

1,264,561

 

 

 

 

 

 




 

 

 

 

 

 

6,774,133

 









Illinois — 12.9%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO, Refunding,
Chicago School Reform Board, Series A (NPFGC),
5.50%, 12/01/26

 

 

1,200

 

 

1,209,768

 

Chicago Transit Authority, RB, Federal Transit
Administration Section 5309, Series A (AGC), 6.00%,
6/01/26

 

 

2,000

 

 

2,184,260

 

City of Chicago Illinois, GO, Refunding, Projects,
Series A (AGM), 5.00%, 1/01/29

 

 

1,490

 

 

1,447,327

 

City of Chicago Illinois, RB (AGM):

 

 

 

 

 

 

 

General, Third Lien, Series C, 5.25%, 1/01/35

 

 

1,255

 

 

1,239,827

 

Series A, 5.00%, 1/01/33

 

 

8,000

 

 

7,732,320

 

City of Chicago Illinois, Refunding RB:

 

 

 

 

 

 

 

General, Third Lien, Series C, 6.50%, 1/01/41 (b)

 

 

1,345

 

 

1,433,286

 

Second Lien (NPFGC), 5.50%, 1/01/30

 

 

1,310

 

 

1,342,999

 

Railsplitter Tobacco Settlement Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

1,405

 

 

1,355,656

 

6.00%, 6/01/28

 

 

400

 

 

384,696

 

State of Illinois, RB, Build Illinois, Series B, 5.25%,
6/15/28

 

 

2,500

 

 

2,547,850

 

 

 

 

 

 




 

 

 

 

 

 

20,877,989

 









Indiana — 4.3%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB, Series A (NPFGC),
5.00%, 1/01/42

 

 

6,000

 

 

5,557,380

 

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

 

 

1,430

 

 

1,453,123

 

 

 

 

 

 




 

 

 

 

 

 

7,010,503

 









Iowa — 0.7%

 

 

 

 

 

 

 

Iowa Finance Authority, Refunding RB, Iowa Health
System (AGC), 5.25%, 2/15/29

 

 

1,080

 

 

1,087,463

 









Kentucky — 0.8%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
RB, Louisville Arena, Sub-Series A-1 (AGC), 6.00%,
12/01/38

 

 

320

 

 

323,658

 

Kentucky State Property & Buildings Commission,
Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/29

 

 

1,000

 

 

1,033,360

 

 

 

 

 

 




 

 

 

 

 

 

1,357,018

 









Louisiana — 1.4%

 

 

 

 

 

 

 

Louisiana State Citizens Property Insurance Corp., RB,
Series C-3 (AGC), 6.13%, 6/01/25

 

 

2,055

 

 

2,273,919

 










 

 

 

See Notes to Financial Statements.


34

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Massachusetts — 1.6%

 

 

 

 

 

 

 

Massachusetts HFA, RB, Rental Mortgage, Series C,
AMT (AGM), 5.50%, 7/01/32

 

$

2,440

 

$

2,302,969

 

Massachusetts HFA, Refunding RB, Housing
Development, Series A, AMT (NPFGC), 5.15%,
6/01/11

 

 

315

 

 

315,838

 

 

 

 

 

 




 

 

 

 

 

 

2,618,807

 









Michigan — 13.2%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series B (NPFGC), 5.50%, 7/01/29

 

 

2,410

 

 

2,362,619

 

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

 

 

2,000

 

 

2,333,340

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series C (BHAC), 5.75%, 7/01/27

 

 

1,580

 

 

1,636,122

 

Second Lien, Series E (BHAC), 5.75%, 7/01/31

 

 

3,240

 

 

3,312,220

 

Senior Lien, Series C-1 (AGM), 7.00%, 7/01/27

 

 

4,810

 

 

5,585,035

 

Senior Lien, Series C-2 (BHAC), 5.25%, 7/01/29

 

 

1,910

 

 

1,905,416

 

Michigan State Building Authority, Refunding RB,
Facilities Program, Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

875

 

 

914,847

 

5.25%, 10/15/25

 

 

455

 

 

469,474

 

Michigan Strategic Fund, Refunding RB, Detroit
Edison Co. Project, Series A, AMT (Syncora), 5.50%,
6/01/30

 

 

750

 

 

718,350

 

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

 

 

1,910

 

 

2,165,501

 

 

 

 

 

 




 

 

 

 

 

 

21,402,924

 









Minnesota — 0.9%

 

 

 

 

 

 

 

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

 

 

1,325

 

 

1,411,761

 









Nevada — 7.8%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO, Series A,
5.25%, 7/01/34

 

 

2,000

 

 

2,041,140

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

3,510

 

 

3,294,170

 

Las Vegas-McCarran, Series A-1 AMT (AGM), 5.00%,
7/01/23

 

 

1,750

 

 

1,760,500

 

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

 

 

6,000

 

 

5,434,320

 

 

 

 

 

 




 

 

 

 

 

 

12,530,130

 









New Jersey — 7.8%

 

 

 

 

 

 

 

New Jersey EDA, RB, Motor Vehicle Surcharge, Series A
(NPFGC), 5.25%, 7/01/33

 

 

6,700

 

 

6,656,115

 

New Jersey Health Care Facilities Financing Authority,
RB, Virtua Health (AGC), 5.50%, 7/01/38

 

 

2,100

 

 

2,110,794

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series A (AGC), 5.63%,
12/15/28

 

 

3,500

 

 

3,768,030

 

 

 

 

 

 




 

 

 

 

 

 

12,534,939

 









New York — 4.4%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series EE, 5.25%, 6/15/40

 

 

3,410

 

 

3,477,552

 

Second General Resolution, Series EE, 5.38%,
6/15/43

 

 

2,170

 

 

2,238,138

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

1,400

 

 

1,414,910

 

 

 

 

 

 




 

 

 

 

 

 

7,130,600

 









Pennsylvania — 1.0%

 

 

 

 

 

 

 

Delaware River Port Authority, RB, Series D (AGC),
5.00%, 1/01/40

 

 

1,720

 

 

1,691,569

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Puerto Rico — 1.4%

 

 

 

 

 

 

 

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

 

$

2,115

 

$

2,192,240

 









Texas — 22.5%

 

 

 

 

 

 

 

Austin Community College District, RB, Educational
Facilities Project, Round Rock Campus, 5.25%,
8/01/33

 

 

2,500

 

 

2,542,000

 

City of Austin Texas, Refunding RB, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 11/15/28

 

 

1,080

 

 

1,113,048

 

5.00%, 11/15/29

 

 

1,365

 

 

1,395,112

 

City of Houston Texas, Refunding RB, Combined,
First Lien, Series A (AGC), 6.00%, 11/15/35

 

 

4,000

 

 

4,381,320

 

Clifton Higher Education Finance Corp., Refunding RB,
Baylor University, 5.25%, 3/01/32

 

 

1,840

 

 

1,895,476

 

Dallas Area Rapid Transit, Refunding RB, Senior Lien,
5.25%, 12/01/38

 

 

3,175

 

 

3,260,757

 

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

 

 

600

 

 

650,844

 

Lubbock Cooper ISD Texas, GO, School Building (AGC),
5.75%, 2/15/42

 

 

775

 

 

798,955

 

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

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

4,885

 

 

4,744,361

 

Series A, 5.13%, 1/01/28

 

 

3,010

 

 

3,012,318

 

Series A, 5.63%, 1/01/33

 

 

6,585

 

 

6,539,563

 

Series B, 5.75%, 1/01/40

 

 

6,275

 

 

6,094,343

 

 

 

 

 

 




 

 

 

 

 

 

36,428,097

 









Utah — 1.4%

 

 

 

 

 

 

 

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

 

 

2,485

 

 

2,302,551

 









Virginia — 1.6%

 

 

 

 

 

 

 

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

 

 

975

 

 

975,341

 

Virginia Public School Authority, RB, School Financing,
6.50%, 12/01/35

 

 

1,500

 

 

1,654,500

 

 

 

 

 

 




 

 

 

 

 

 

2,629,841

 









Washington — 1.6%

 

 

 

 

 

 

 

City of Seattle Washington, Refunding RB, Series A,
5.25%, 2/01/36

 

 

1,375

 

 

1,419,399

 

State of Washington, GO, Various Purpose, Series B,
5.25%, 2/01/36

 

 

1,075

 

 

1,113,947

 

 

 

 

 

 




 

 

 

 

 

 

2,533,346

 









Total Municipal Bonds — 131.6%

 

 

 

 

 

212,786,684

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

 

 

 

 

 









Alabama — 1.3%

 

 

 

 

 

 

 

Mobile Board of Water & Sewer Commissioners, RB
(NPFGC), 5.00%, 1/01/31

 

 

2,120

 

 

2,130,367

 









California — 2.8%

 

 

 

 

 

 

 

City of San Jose California, GO, Libraries, Parks, and
Public Safety Project (NPFGC), 5.00%, 9/01/30

 

 

1,258

 

 

1,273,062

 

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

 

 

3,149

 

 

3,204,370

 

 

 

 

 

 




 

 

 

 

 

 

4,477,432

 









Colorado — 3.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic Health,
Series C-3 (AGM), 5.10%, 10/01/41

 

 

5,610

 

 

5,256,514

 










 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

APRIL 30, 2011

35




 

 


 

 

Schedule of Investments (continued)

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

 







District of Columbia — 0.7%

 

 

 

 

 

 

 

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

 

$

1,040

 

$

1,138,325

 









Florida — 8.2%

 

 

 

 

 

 

 

City of St. Petersburg Florida, Refunding RB (NPFGC),
5.00%, 10/01/35

 

 

4,302

 

 

4,206,918

 

County of Miami-Dade Florida, GO, Building Better
Communities Program, Series B-1, 6.00%, 7/01/38

 

 

7,500

 

 

7,965,300

 

Lee County Housing Finance Authority, RB, Multi-County
Program, Series A-2, AMT (Ginnie Mae), 6.00%,
9/01/40

 

 

1,065

 

 

1,132,138

 

 

 

 

 

 




 

 

 

 

 

 

13,304,356

 









Georgia — 2.5%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, Water & Sewer, RB
(AGM), 5.25%, 10/01/34

 

 

4,000

 

 

4,045,960

 









Illinois — 1.5%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB, Second Lien
(AGM), 5.25%, 11/01/33

 

 

2,509

 

 

2,518,458

 









Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky State Property & Building Commission,
Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27

 

 

1,406

 

 

1,472,147

 









Massachusetts — 5.1%

 

 

 

 

 

 

 

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

 

 

8,008

 

 

8,203,508

 









Nevada — 5.8%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

5,000

 

 

5,404,150

 

Series B, 5.50%, 7/01/29

 

 

3,749

 

 

3,976,291

 

 

 

 

 

 




 

 

 

 

 

 

9,380,441

 









New Jersey — 1.5%

 

 

 

 

 

 

 

New Jersey State Housing & Mortgage Finance Agency,
RB, S/F Housing, Series CC, 5.25%, 10/01/29

 

 

2,401

 

 

2,417,570

 









Washington — 2.7%

 

 

 

 

 

 

 

City of Bellevue Washington, GO, Refunding (NPFGC),
5.50%, 12/01/39

 

 

4,002

 

 

4,310,558

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 36.2%

 

 

 

 

 

58,655,636

 









Total Long-Term Investments
(Cost — $273,218,071) — 167.8%

 

 

 

 

 

271,442,320

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 







FFI Institutional Tax-Exempt Fund, 0.23% (d)(e)

 

 

6,952,084

 

$

6,952,084

 









Total Short-Term Securities
(Cost — $6,952,084) — 4.3%

 

 

 

 

 

6,952,084

 









Total Investments (Cost — $280,170,155*) — 172.1%

 

 

 

 

 

278,394,404

 

Other Assets Less Liabilities — 1.3%

 

 

 

 

 

2,017,755

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (19.6)%

 

 

 

 

 

(31,688,219

)

AMPS, at Redemption Value — (53.8)%

 

 

 

 

 

(87,004,310

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

161,719,630

 

 

 

 

 

 





 

 


 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

248,460,770

 

 

 




Gross unrealized appreciation

 

$

4,814,153

 

Gross unrealized depreciation

 

 

(6,545,933

)

 

 




Net unrealized depreciation

 

$

(1,731,780

)

 

 





 

 

(a)

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

 

 

(b)

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


 

 

 

 

 

 

 

 







Counterparty

 

Value

Unrealized
Appreciation







Citigroup Global Markets

 

$

1,433,286

 

$

14,472

 










 

 

(c)

Securities represent bonds transferred to a TOB 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 TOBs.

 

 

(d)

Investments in companies considered to be an affiliate of the Fund during the year, 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
April 30,
2011

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

8,653,666

 

 

(1,701,582

)

 

6,952,084

 

$

13,319

 
















 

 

(e)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.


36

ANNUAL REPORT

APRIL 30, 2011




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)


 

 

Financial futures contracts sold as of April 30, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 













    60

 

 

10-Year U.S.
Treasury Note

 

 

Chicago Board
of Trade

 

 

June 2011

 

$

7,110,824

 

$

(157,614

)



















 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad levels for financial statement purposes 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 and derivative financial instruments)

 

 

 

 

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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following tables summarize the inputs used as of April 30, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

 

$

271,442,320

 

 

 

$

271,442,320

 

Short-Term
Securities

 

$

6,952,084

 

 

 

 

 

 

6,952,084

 

 

 













Total

 

$

6,952,084

 

$

271,442,320

 

 

 

$

278,394,404

 

 

 














 

 

1

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Derivative Financial
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

(157,614

)

 

 

 

 

$

(157,614

)
















 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2011

37




 

 


 

 

Schedule of Investments April 30, 2011

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

 

$

4,852,903

 

County of Jefferson Alabama, RB, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/21

 

 

5,500

 

 

4,873,495

 

5.25%, 1/01/23

 

 

6,500

 

 

5,720,455

 

 

 

 

 

 




 

 

 

 

 

 

15,446,853

 









Arizona — 4.3%

 

 

 

 

 

 

 

City of Tucson Arizona, COP (AGC):

 

 

 

 

 

 

 

4.25%, 7/01/21

 

 

1,870

 

 

1,914,674

 

4.25%, 7/01/22

 

 

1,895

 

 

1,916,451

 

4.50%, 7/01/24

 

 

2,120

 

 

2,137,935

 

Refunding, 4.00%, 7/01/20

 

 

2,325

 

 

2,368,756

 

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

 

 

2,610

 

 

1,996,311

 

Pima County IDA, RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project, Series C,
6.70%, 7/01/21

 

 

965

 

 

943,645

 

Charter Schools, Series K, 6.38%, 7/01/31

 

 

930

 

 

803,427

 

Pima County IDA, Refunding RB, Tucson Electric
Power Co., San Juan, Series A, 4.95%, 10/01/20

 

 

2,325

 

 

2,238,301

 

Salt River Project Agricultural Improvement & Power
District, RB, Series A, 5.00%, 1/01/25

 

 

4,000

 

 

4,263,360

 

Scottsdale IDA, RB, Scottsdale Healthcare, Series C
(AGC), 5.00%, 9/01/35

 

 

4,000

 

 

3,805,200

 

State of Arizona, COP, Department of Administration,
Series A (AGM), 4.25%, 10/01/23

 

 

1,250

 

 

1,214,900

 

 

 

 

 

 




 

 

 

 

 

 

23,602,960

 









California — 15.4%

 

 

 

 

 

 

 

Antelope Valley Healthcare District California, RB,
Series A, 5.25%, 9/01/17

 

 

8,000

 

 

7,577,840

 

California Health Facilities Financing Authority,
Refunding RB, Sutter Health, Series B, 5.00%,
8/15/22

 

 

2,135

 

 

2,214,059

 

California HFA, RB, Home Mortgage, Series K, AMT,
4.55%, 8/01/21

 

 

3,805

 

 

3,346,612

 

California HFA, Refunding RB, Home Mortgage,
Series M, AMT, 4.55%, 8/01/21

 

 

7,210

 

 

6,651,369

 

California Pollution Control Financing Authority, RB, AMT:

 

 

 

 

 

 

 

Republic Services Inc. Project, Series B,
Mandatory Put Bonds, 5.25%, 6/01/23 (a)

 

 

605

 

 

634,010

 

Waste Management Inc. Project, Series A-2,
5.40%, 4/01/25

 

 

1,240

 

 

1,233,465

 

California Pollution Control Financing Authority,
Refunding RB, Pacific Gas, Series C, AMT (FGIC),
4.75%, 12/01/23

 

 

5,000

 

 

4,947,050

 

California State Public Works Board, RB, Department
of Corrections, Series C, 5.50%, 6/01/20

 

 

10,000

 

 

10,253,200

 

California Statewide Communities Development
Authority, RB, Health Facility, Memorial Health
Services, Series A, 6.00%, 10/01/23

 

 

2,500

 

 

2,566,350

 

City of Sacramento California, Special Tax Bonds,
North Natomas Community Facilities, Series 4-C:

 

 

 

 

 

 

 

5.75%, 9/01/22

 

 

1,715

 

 

1,707,797

 

6.00%, 9/01/28

 

 

2,990

 

 

2,865,497

 

Golden State Tobacco Securitization Corp. California,
Refunding RB, Asset-Backed, Senior Series A-1,
5.00%, 6/01/15

 

 

5,000

 

 

5,079,150

 

Los Angeles Regional Airports Improvement Corp.
California, Refunding RB, Facilities, LAXFUEL Corp.,
LA International, AMT (AMBAC), 5.50%, 1/01/32

 

 

1,435

 

 

1,261,092

 

Rowland Unified School District California, GO, Election
of 2000, Series B (AGM), 5.25%, 8/01/27

 

 

1,515

 

 

1,536,725

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 

State of California, GO:

 

 

 

 

 

 

 

5.50%, 4/01/14 (b)

 

$

10,000

 

$

11,303,500

 

5.50%, 4/01/28

 

 

15

 

 

15,100

 

(NPFGC), 5.25%, 2/01/27

 

 

5,000

 

 

5,034,550

 

Refunding (AMBAC), 4.50%, 8/01/28

 

 

3,000

 

 

2,736,900

 

Various Purpose, 5.13%, 11/01/24

 

 

2,030

 

 

2,060,612

 

Various Purpose, 5.75%, 4/01/31

 

 

7,000

 

 

7,334,950

 

Various Purpose, 5.00%, 11/01/32

 

 

2,000

 

 

1,938,500

 

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

 

 

2,586,171

 

 

 

 

 

 




 

 

 

 

 

 

84,884,499

 









Colorado — 1.9%

 

 

 

 

 

 

 

Montrose Memorial Hospital, RB, 6.38%, 12/01/23

 

 

2,250

 

 

2,278,238

 

Plaza Metropolitan District No. 1 Colorado, Tax Allocation
Bonds, Public Improvement Fee, Tax Increment,
7.50%, 12/01/15

 

 

7,500

 

 

7,436,775

 

Southlands Metropolitan District No. 1, GO, 6.75%,
12/01/14 (b)

 

 

840

 

 

956,785

 

 

 

 

 

 




 

 

 

 

 

 

10,671,798

 









Connecticut — 0.2%

 

 

 

 

 

 

 

Connecticut State Development Authority, RB, Learjet Inc.
Project, AMT, 7.95%, 4/01/26

 

 

1,160

 

 

1,203,198

 









Florida — 3.9%

 

 

 

 

 

 

 

County of Miami-Dade Florida, Refunding RB, Series C
(BHAC), 5.00%, 10/01/23

 

 

8,000

 

 

8,567,440

 

Highlands County Health Facilities Authority, Refunding
RB, Adventist Health, Series G, 5.13%, 11/15/16 (b)

 

 

35

 

 

41,296

 

Midtown Miami Community Development District,
Special Assessment Bonds:

 

 

 

 

 

 

 

Series A, 6.00%, 5/01/24

 

 

3,040

 

 

2,849,666

 

Series B, 6.50%, 5/01/37

 

 

1,900

 

 

1,746,689

 

Panther Trace II Community Development District,
Special Assessment Bonds, Special Assessment,
5.13%, 11/01/13

 

 

1,680

 

 

1,496,477

 

Portofino Shores Community Development District,
Special Assessment Bonds, Series A, 6.40%,
5/01/34

 

 

1,085

 

 

1,011,090

 

South Lake County Hospital District, RB, South Lake
Hospital Inc., 6.63%, 10/01/23

 

 

2,390

 

 

2,442,030

 

Sterling Hill Community Development District, Special
Assessment Bonds, Refunding, Series B, 5.50%,
11/01/10

 

 

160

 

 

111,888

 

University of Florida Research Foundation Inc., RB
(AMBAC), 5.13%, 9/01/33

 

 

4,000

 

 

3,356,200

 

 

 

 

 

 




 

 

 

 

 

 

21,622,776

 









Georgia — 1.3%

 

 

 

 

 

 

 

Fulton County Development Authority, Refunding RB,
Robert Woodruff, Series B, 5.25%, 3/15/24

 

 

4,000

 

 

4,047,600

 

Medical Center Hospital Authority, Refunding RB,
Columbus Regional Healthcare (AGM):

 

 

 

 

 

 

 

4.00%, 8/01/23

 

 

1,500

 

 

1,395,105

 

4.13%, 8/01/24

 

 

2,000

 

 

1,832,100

 

 

 

 

 

 




 

 

 

 

 

 

7,274,805

 









Guam — 0.8%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A, 6.00%, 11/15/19

 

 

1,530

 

 

1,530,964

 

Territory of Guam, RB, Section 30, Series A, 5.38%,
12/01/24

 

 

2,620

 

 

2,592,988

 

 

 

 

 

 




 

 

 

 

 

 

4,123,952

 









Idaho — 0.6%

 

 

 

 

 

 

 

Idaho Health Facilities Authority, RB, St. Luke’s Regional
Medical Center (AGM), 4.63%, 7/01/30

 

 

3,700

 

 

3,464,014

 










 

 

 

See Notes to Financial Statements.

 




38

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Illinois — 11.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

$

8,130

 

$

8,335,282

 

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

 

 

7,510

 

 

7,597,717

 

City of Chicago Illinois, Refunding ARB, General,
Third Lien, Series A-2, AMT (AGM), 5.75%, 1/01/19

 

 

2,550

 

 

2,664,495

 

Du Page & Will Counties Community School District
No. 204 Indian, GO, School Building, Series A
(NPFGC), 5.25%, 12/30/22

 

 

8,650

 

 

9,250,137

 

Du Page County Forest Preservation District Illinois,
GO, Refunding, Series A, 3.50%, 11/01/24

 

 

3,000

 

 

2,819,190

 

Illinois Finance Authority, RB, Community Rehabilitation
Providers Facilities, Series A, 6.63%, 7/01/12 (b)

 

 

6,930

 

 

7,458,343

 

Railsplitter Tobacco Settlement Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

3,500

 

 

3,377,080

 

6.25%, 6/01/24

 

 

12,750

 

 

12,793,095

 

State of Illinois, GO, First Series (NPFGC), 5.13%,
2/01/20

 

 

1,335

 

 

1,339,032

 

Village of Hodgkins Illinois, RB, MBM Project, AMT,
5.90%, 11/01/17

 

 

6,000

 

 

6,000,120

 

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

 

 

1,525

 

 

1,357,555

 

 

 

 

 

 




 

 

 

 

 

 

62,992,046

 









Indiana — 1.3%

 

 

 

 

 

 

 

City of Whiting Indiana, RB, BP Products North America,
5.25%, 1/01/21

 

 

4,800

 

 

5,109,312

 

County of Jasper Indiana, Refunding RB, Northern
Indiana Public Service Co., Series C (NPFGC),
5.85%, 4/01/19

 

 

2,000

 

 

2,203,940

 

 

 

 

 

 




 

 

 

 

 

 

7,313,252

 









Iowa — 0.6%

 

 

 

 

 

 

 

Iowa Higher Education Loan Authority, Refunding RB,
Private College Facility:

 

 

 

 

 

 

 

5.00%, 9/01/20

 

 

1,000

 

 

1,046,270

 

5.00%, 9/01/22

 

 

2,315

 

 

2,362,133

 

 

 

 

 

 




 

 

 

 

 

 

3,408,403

 









Kansas — 1.5%

 

 

 

 

 

 

 

City of Dodge City Kansas, RB (AGC), 4.00%, 6/01/24

 

 

2,245

 

 

2,235,414

 

Kansas Development Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Adventist Health, 5.00%, 11/15/23

 

 

1,500

 

 

1,570,020

 

Adventist/Sunbelt, Series D, 5.00%, 11/15/24

 

 

1,000

 

 

1,036,650

 

Sisters of Leavenworth, Series A, 4.00%, 1/01/22

 

 

3,425

 

 

3,326,189

 

 

 

 

 

 




 

 

 

 

 

 

8,168,273

 









Kentucky — 3.1%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 5.25%, 6/01/23

 

 

8,650

 

 

8,326,663

 

Kentucky State Property & Buildings Commission,
Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/24

 

 

8,000

 

 

8,614,800

 

 

 

 

 

 




 

 

 

 

 

 

16,941,463

 









Louisiana — 3.0%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority, RB (NPFGC):

 

 

 

 

 

 

 

Nineteenth Judicial District Court, 5.50%, 6/01/41

 

 

2,000

 

 

2,003,980

 

University of New Orleans Research & Technology,
5.25%, 3/01/26

 

 

5,000

 

 

5,106,900

 

Louisiana Public Facilities Authority, Refunding RB,
Entergy Gulf States Louisiana, LLC Project, Series A,
5.00%, 9/01/28

 

 

5,000

 

 

4,988,150

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Louisiana (concluded)

 

 

 

 

 

 

 

New Orleans Aviation Board Louisiana, Refunding GARB,
Restructuring, Series A-2 (AGC), 6.00%, 1/01/23

 

$

850

 

$

951,770

 

Port of New Orleans Louisiana, Refunding RB,
Continental Grain Co. Project, 6.50%, 1/01/17

 

 

3,500

 

 

3,395,770

 

 

 

 

 

 




 

 

 

 

 

 

16,446,570

 









Maine — 0.3%

 

 

 

 

 

 

 

Portland New Public Housing Authority Maine,
Refunding RB, Senior Living, Series A, 6.00%, 2/01/34

 

 

1,965

 

 

1,794,615

 









Maryland — 0.5%

 

 

 

 

 

 

 

Maryland EDC, RB, Transportation Facilities Project,
Series A, 5.13%, 6/01/20

 

 

1,750

 

 

1,681,820

 

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

 

 

790

 

 

755,896

 

Maryland Industrial Development Financing Authority,
RB, Our Lady of Good Counsel School, Series A,
6.00%, 5/01/35

 

 

500

 

 

463,540

 

 

 

 

 

 




 

 

 

 

 

 

2,901,256

 









Massachusetts — 0.8%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB,
Ogden Haverhill Project, Series B, AMT:

 

 

 

 

 

 

 

5.35%, 12/01/15

 

 

1,210

 

 

1,210,363

 

5.50%, 12/01/19

 

 

2,000

 

 

2,000,640

 

Massachusetts Health & Educational Facilities
Authority, RB, Winchester Hospital, 5.00%, 7/01/25

 

 

1,060

 

 

947,555

 

 

 

 

 

 




 

 

 

 

 

 

4,158,558

 









Michigan — 4.3%

 

 

 

 

 

 

 

City of Detroit Michigan, Refunding RB, Second Lien,
Series C (BHAC), 5.75%, 7/01/26

 

 

4,235

 

 

4,403,426

 

Kalamazoo Hospital Finance Authority, Refunding RB,
Bronson Methodist Hospital, 4.25%, 5/15/25

 

 

2,120

 

 

1,913,703

 

Michigan State Hospital Finance Authority,
Refunding RB:

 

 

 

 

 

 

 

Hospital, Henry Ford Health, 5.25%, 11/15/24

 

 

4,900

 

 

4,837,280

 

Hospital, Oakwood Obligation Group, Series A,
6.00%, 4/01/22

 

 

4,795

 

 

4,877,666

 

Wayne County Airport Authority, RB, Detroit Metropolitan
Wayne County Airport, AMT (AGC), 4.75%, 12/01/18

 

 

7,665

 

 

7,785,570

 

 

 

 

 

 




 

 

 

 

 

 

23,817,645

 









Minnesota — 2.1%

 

 

 

 

 

 

 

City of Rochester Minnesota, Refunding RB, Mayo
Clinic, Series C, Mandatory Put Bonds, 4.50%,
11/15/38 (a)(c)

 

 

3,200

 

 

3,355,616

 

City of St. Cloud Minnesota, RB, CentraCare Health
System, Series A, 4.25%, 5/01/21

 

 

2,300

 

 

2,292,019

 

Minneapolis & St. Paul Housing & Redevelopment
Authority, RB, HealthPartners Obligation Group Project:

 

 

 

 

 

 

 

6.00%, 12/01/19

 

 

1,000

 

 

1,035,800

 

6.00%, 12/01/21

 

 

2,545

 

 

2,616,718

 

Minnesota State Municipal Power Agency, RB, Series A,
5.25%, 10/01/24

 

 

2,000

 

 

2,069,900

 

 

 

 

 

 




 

 

 

 

 

 

11,370,053

 









Mississippi — 1.7%

 

 

 

 

 

 

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project:

 

 

 

 

 

 

 

5.88%, 4/01/22

 

 

5,000

 

 

4,881,800

 

5.90%, 5/01/22

 

 

4,410

 

 

4,314,127

 

 

 

 

 

 




 

 

 

 

 

 

9,195,927

 









Missouri — 1.4%

 

 

 

 

 

 

 

Missouri State Health & Educational Facilities Authority,
RB, SSM Health Care, Series B, 4.25%, 6/01/25

 

 

8,125

 

 

7,639,125

 










 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2011

39




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Montana — 0.5%

 

 

 

 

 

 

 

Montana Facility Finance Authority, Refunding RB,
Series B, 5.00%, 1/01/24

 

$

2,625

 

$

2,689,785

 









Nebraska — 1.5%

 

 

 

 

 

 

 

Douglas County Hospital Authority No. 2, RB, Health
Facilities, Immanuel Obligation Group, 5.50%,
1/01/30

 

 

500

 

 

491,940

 

Douglas County School District No. 17 Nebraska,
GO, Refunding:

 

 

 

 

 

 

 

2.00%, 6/15/24

 

 

4,390

 

 

3,514,063

 

2.00%, 6/15/25

 

 

4,480

 

 

3,454,394

 

Lancaster County Hospital Authority No. 1, RB,
Immanuel Obligation Group, 5.50%, 1/01/30

 

 

1,000

 

 

994,150

 

 

 

 

 

 




 

 

 

 

 

 

8,454,547

 









Nevada — 1.1%

 

 

 

 

 

 

 

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

 

 

2,100

 

 

2,081,289

 

County of Humboldt Nevada, Refunding RB, Idaho
Power Co. Project, 5.15%, 12/01/24

 

 

3,800

 

 

3,892,606

 

 

 

 

 

 




 

 

 

 

 

 

5,973,895

 









New Jersey — 12.5%

 

 

 

 

 

 

 

Essex County Improvement Authority, RB, Newark Project,
Series A (AGM), 5.00%, 11/01/20

 

 

2,000

 

 

2,017,780

 

Garden State Preservation Trust, RB, Election of 2005,
Series A (AGM):

 

 

 

 

 

 

 

5.80%, 11/01/21

 

 

3,635

 

 

4,152,151

 

5.80%, 11/01/23

 

 

5,050

 

 

5,741,648

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

 

9,810

 

 

8,915,818

 

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

 

 

5,540

 

 

5,582,436

 

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

 

 

17,900

 

 

17,782,755

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

New Jersey American Water Co., Series E, AMT,
4.70%, 12/01/25

 

 

3,250

 

 

3,142,555

 

School Facilities Construction, Series AA, 4.25%,
12/15/24

 

 

3,850

 

 

3,622,504

 

School Facilities Construction, Series EE, 5.00%,
9/01/23

 

 

3,465

 

 

3,554,154

 

New Jersey Health Care Facilities Financing Authority,
Refunding RB, Hackensack University Medical,
Series B (AGM), 4.00%, 1/01/24

 

 

635

 

 

596,589

 

New Jersey Higher Education Assistance Authority,
Refunding RB, Series 1A, 4.75%, 12/01/21

 

 

2,400

 

 

2,434,752

 

New Jersey State Housing & Mortgage Finance Agency,
RB, S/F Housing, Series X, AMT, 5.10%, 10/01/23

 

 

4,500

 

 

4,514,490

 

New Jersey Transportation Trust Fund Authority, RB, CAB,
Transportation System, Series C (AMBAC), 5.72%,
12/15/25 (d)

 

 

9,450

 

 

4,003,115

 

South Jersey Port Corp., RB, Marine Terminal, Series O-1
(AGC), 4.63%, 1/01/23

 

 

1,375

 

 

1,420,664

 

University of Medicine & Dentistry of New Jersey, RB,
Series A (AMBAC), 5.50%, 12/01/23

 

 

1,000

 

 

1,009,780

 

 

 

 

 

 




 

 

 

 

 

 

68,491,191

 









New York — 27.7%

 

 

 

 

 

 

 

City of New York New York, GO, Refunding, Series E,
5.00%, 8/01/27

 

 

3,500

 

 

3,663,555

 

City of New York New York, GO:

 

 

 

 

 

 

 

Series D1, 5.13%, 12/01/26

 

 

4,615

 

 

4,855,580

 

Sub-Series I-1, 5.50%, 4/01/21

 

 

5,000

 

 

5,689,500

 

Dutchess County Industrial Development Agency
New York, RB, St. Francis Hospital, Series B, 7.25%,
3/01/19

 

 

810

 

 

790,341

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (continued)

 

 

 

 

 

 

 

Essex County Industrial Development Agency,
Refunding RB, International Paper, Series A, AMT,
5.20%, 12/01/23

 

$

6,300

 

$

6,007,428

 

Long Island Power Authority, Refunding RB, Series A,
5.50%, 4/01/24

 

 

1,475

 

 

1,603,340

 

Metropolitan Transportation Authority, RB:

 

 

 

 

 

 

 

Sub-Series B-1, 5.00%, 11/15/24

 

 

2,300

 

 

2,498,099

 

Sub-Series B-4, 5.00%, 11/15/24

 

 

1,500

 

 

1,629,195

 

Transportation, Series A, 5.00%, 11/15/25

 

 

1,980

 

 

2,016,392

 

Metropolitan Transportation Authority, Refunding RB,
Series B, 5.25%, 11/15/25

 

 

4,000

 

 

4,289,920

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

3,500

 

 

3,619,980

 

Special Needs Facilities Pooled Program,
Series C-1, 6.80%, 7/01/19

 

 

1,895

 

 

1,842,736

 

New York City Industrial Development Agency,
Refunding RB, New York Stock Exchange Project,
Series A, 4.25%, 5/01/24

 

 

1,740

 

 

1,752,563

 

New York City Transitional Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2007, Series S-1 (NPFGC), 5.00%, 7/15/24

 

 

500

 

 

521,615

 

Fiscal 2009, Series S-3, 5.00%, 1/15/23

 

 

3,560

 

 

3,818,171

 

New York Liberty Development Corp., Refunding RB,
Second Priority, Bank of America Tower at One Bryant
Park Project, 5.63%, 7/15/47

 

 

3,000

 

 

2,863,980

 

New York State Dormitory Authority, LRB, Municipal
Health Facilities, Sub-Series 2-4, 5.00%, 1/15/27

 

 

6,900

 

 

6,930,705

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Education, Series D, 5.00%, 3/15/31

 

 

4,500

 

 

4,630,005

 

Fordham University, Series A, 5.25%, 7/01/25

 

 

900

 

 

956,061

 

Interagency Council Pooled, Series A-1, 4.25%,
7/01/25

 

 

405

 

 

390,339

 

Mental Health Services Facilities Improvement,
Series A (AGM), 5.00%, 2/15/22

 

 

4,000

 

 

4,316,040

 

Mount Sinai School of Medicine, Series A (NPFGC),
5.15%, 7/01/24

 

 

1,000

 

 

1,010,680

 

North Shore-Long Island Jewish Health System,
Series A, 5.50%, 5/01/30

 

 

1,495

 

 

1,499,799

 

NYU Hospital Center, Series A, 5.00%, 7/01/22

 

 

1,725

 

 

1,729,916

 

NYU Hospital Center, Series A, 5.13%, 7/01/23

 

 

1,670

 

 

1,683,260

 

The New School, 5.25%, 7/01/24

 

 

2,400

 

 

2,498,184

 

The New School, 5.25%, 7/01/25

 

 

2,100

 

 

2,161,446

 

University of Rochester, Series C, 4.00%, 7/01/24

 

 

625

 

 

631,056

 

New York State Dormitory Authority, Refunding RB:

 

 

 

 

 

 

 

Mount Sinai Hospital, Series A, 4.25%, 7/01/23

 

 

2,225

 

 

2,143,854

 

North Shore-Long Island Jewish Health System,
Series E, 5.00%, 5/01/22

 

 

650

 

 

666,374

 

North Shore-Long Island Jewish Health System,
Series E, 5.00%, 5/01/23

 

 

2,160

 

 

2,206,289

 

Yeshiva University, 4.00%, 9/01/23

 

 

2,860

 

 

2,912,109

 

Yeshiva University, 4.25%, 9/01/24

 

 

2,750

 

 

2,813,305

 

New York State Environmental Facilities Corp., RB,
Environment, Series A (FGIC), 5.25%, 12/15/14 (b)

 

 

7,380

 

 

8,526,926

 

New York State Urban Development Corp., Refunding
RB, Service Contract, Series B, 5.00%, 1/01/21

 

 

8,000

 

 

8,670,480

 

Port Authority of New York & New Jersey, RB, JFK
International Air Terminal, 5.00%, 12/01/20

 

 

2,475

 

 

2,414,907

 

Port Authority of New York & New Jersey, Refunding RB:

 

 

 

 

 

 

 

Consolidated, 152nd Series, AMT, 5.00%,
11/01/23

 

 

2,500

 

 

2,529,000

 

Consolidated, 153rd Series, 5.00%, 7/15/24

 

 

2,010

 

 

2,160,650

 

Sales Tax Asset Receivable Corp., RB, Series A (NPFGC),
5.00%, 10/15/20

 

 

9,070

 

 

9,837,231

 


 

 

 

See Notes to Financial Statements.

 




40

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (concluded)

 

 

 

 

 

 

 

Tobacco Settlement Financing Corp. New York, RB,
Asset-Backed:

 

 

 

 

 

 

 

Series A-1 (AMBAC), 5.25%, 6/01/22

 

$

6,510

 

$

6,873,453

 

Series B-1C, 5.50%, 6/01/21

 

 

7,000

 

 

7,440,300

 

Series B-1C, 5.50%, 6/01/22

 

 

10,000

 

 

10,537,600

 

Trust for Cultural Resources, RB, Carnegie Hall, Series A,
5.00%, 12/01/29

 

 

3,750

 

 

3,855,300

 

United Nations Development Corp. New York, Refunding
RB, Series A, 4.25%, 7/01/24

 

 

2,985

 

 

2,962,553

 

 

 

 

 

 




 

 

 

 

 

 

152,450,217

 









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

 

 

2,344,524

 

North Carolina Eastern Municipal Power Agency,
Refunding RB, Series B, 5.00%, 1/01/26

 

 

1,925

 

 

1,953,047

 

 

 

 

 

 




 

 

 

 

 

 

4,297,571

 









Northern Mariana Islands — 0.8%

 

 

 

 

 

 

 

Commonwealth of the Northern Mariana Islands, GO,
Series A:

 

 

 

 

 

 

 

6.75%, 10/01/13 (b)

 

 

3,800

 

 

4,335,344

 

6.75%, 10/01/33

 

 

250

 

 

228,693

 

 

 

 

 

 




 

 

 

 

 

 

4,564,037

 









Ohio — 0.4%

 

 

 

 

 

 

 

Cincinnati City School District, GO, Refunding, School
Improvement, 5.25%, 6/01/24

 

 

1,825

 

 

1,991,239

 









Oregon — 1.3%

 

 

 

 

 

 

 

Oregon State Facilities Authority, Refunding RB:

 

 

 

 

 

 

 

Lewis & Clark College Project, Series A, 5.00%,
10/01/27

 

 

5,000

 

 

4,955,600

 

Reed College Project, Series A, 5.00%, 7/01/29

 

 

1,835

 

 

1,939,962

 

 

 

 

 

 




 

 

 

 

 

 

6,895,562

 









Pennsylvania — 8.0%

 

 

 

 

 

 

 

City of Philadelphia Pennsylvania, RB, Series A, AMT
(AGM), 5.00%, 6/15/20

 

 

2,895

 

 

2,982,574

 

City of Philadelphia Pennsylvania, Refunding RB,
Series B, AMT (AGM), 5.00%, 6/15/19

 

 

3,905

 

 

4,066,276

 

City of Pittsburgh Pennsylvania, GO, Refunding, Series B
(AGM), 5.25%, 9/01/17

 

 

9,630

 

 

10,481,388

 

City of Pittsburgh Pennsylvania, GO, Series C (AGM),
5.25%, 9/01/18

 

 

6,430

 

 

6,911,736

 

Montgomery County IDA Pennsylvania, MRB,
Whitemarsh Continuing Care, 6.00%, 2/01/21

 

 

3,500

 

 

3,125,220

 

Montgomery County IDA Pennsylvania, RB, New
Regional Medical Center Project (FHA), 5.00%,
8/01/24

 

 

3,500

 

 

3,606,960

 

Pennsylvania Economic Development Financing
Authority, RB, National Gypsum Co., Series A, AMT,
6.25%, 11/01/27

 

 

7,710

 

 

6,375,168

 

South Fork Municipal Authority, RB, Conemaugh Valley
Memorial, Series A (AGC), 6.00%, 7/01/26

 

 

6,225

 

 

6,593,395

 

 

 

 

 

 




 

 

 

 

 

 

44,142,717

 









Puerto Rico — 10.2%

 

 

 

 

 

 

 

Puerto Rico Aqueduct & Sewer Authority, RB, Senior
Lien, Series A (AGC), 5.00%, 7/01/25

 

 

3,215

 

 

3,253,419

 

Puerto Rico Electric Power Authority, RB:

 

 

 

 

 

 

 

Series CCC, 4.25%, 7/01/23

 

 

2,360

 

 

2,194,824

 

Series TT, 5.00%, 7/01/27

 

 

8,500

 

 

7,952,855

 

Puerto Rico Highway & Transportation Authority, RB:

 

 

 

 

 

 

 

Series Y (AGM), 6.25%, 7/01/21

 

 

3,000

 

 

3,295,440

 

Subordinate (FGIC), 5.75%, 7/01/21

 

 

4,375

 

 

4,426,581

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Puerto Rico (concluded)

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation Authority,
Refunding RB, Series AA-1 (AGM), 4.95%, 7/01/26

 

$

1,500

 

$

1,462,410

 

Puerto Rico Housing Finance Authority, Refunding RB,
Subordinate, Capital Fund Modernization, 5.13%,
12/01/27

 

 

12,900

 

 

12,951,729

 

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

 

 

5,390

 

 

4,413,278

 

Puerto Rico Public Buildings Authority, RB, Government
Facilities, Series I, 5.50%, 7/01/14 (b)

 

 

8,000

 

 

9,107,760

 

Puerto Rico Public Buildings Authority, Refunding RB,
Government Facilities:

 

 

 

 

 

 

 

Series D, 5.25%, 7/01/27

 

 

3,280

 

 

3,115,147

 

Series M-3 (NPFGC), 6.00%, 7/01/28

 

 

1,900

 

 

1,937,468

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 5.63%, 8/01/30

 

 

1,925

 

 

1,921,439

 

 

 

 

 

 




 

 

 

 

 

 

56,032,350

 









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

 

 

2,582,050

 









South Carolina — 0.2%

 

 

 

 

 

 

 

County of Florence South Carolina, RB, McLeod
Regional Medical Center, Series A, 4.50%, 11/01/25

 

 

1,000

 

 

937,360

 









South Dakota — 0.4%

 

 

 

 

 

 

 

Educational Enhancement Funding Corp., RB, Series B,
6.50%, 6/01/32

 

 

2,200

 

 

2,145,682

 









Tennessee — 2.1%

 

 

 

 

 

 

 

Chattanooga-Hamilton County Hospital Authority
Tennessee, Refunding RB, Erlanger Health (AGM),
5.00%, 10/01/22

 

 

1,620

 

 

1,679,648

 

Johnson City Health & Educational Facilities Board,
RB, Appalachian Christian Village Project, Series A,
6.00%, 2/15/19

 

 

1,515

 

 

1,440,659

 

Memphis-Shelby County Sports Authority Inc.,
Refunding RB, Memphis Arena Project:

 

 

 

 

 

 

 

Series A, 5.00%, 11/01/23

 

 

2,695

 

 

2,803,851

 

Series B, 5.00%, 11/01/22

 

 

1,000

 

 

1,051,100

 

Shelby County Health Educational & Housing Facilities
Board, RB, Germantown Village, Series A:

 

 

 

 

 

 

 

6.75%, 12/01/18

 

 

3,550

 

 

3,279,987

 

7.00%, 12/01/23

 

 

1,450

 

 

1,292,922

 

 

 

 

 

 




 

 

 

 

 

 

11,548,167

 









Texas — 2.1%

 

 

 

 

 

 

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., RB, Series 2001-A-1, AMT,
6.15%, 1/01/16

 

 

4,000

 

 

3,963,200

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., Refunding RB, Series A,
Sub-Series 2, Mandatory Put Bonds, AMT, 9.00%,
5/01/29 (a)

 

 

3,000

 

 

3,071,850

 

Gulf Coast IDA, RB, Citgo Petroleum Corp. Project,
Mandatory Put Bonds, AMT, 7.50%, 5/01/25 (a)

 

 

2,440

 

 

2,454,079

 

Gulf Coast Waste Disposal Authority, Refunding RB,
Series A, AMT, 6.10%, 8/01/24

 

 

2,000

 

 

2,002,580

 

 

 

 

 

 




 

 

 

 

 

 

11,491,709

 









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

 

 

1,799,308

 

Virgin Islands Public Finance Authority, RB, Senior
Secured, Hovensa Refinery, AMT, 6.13%, 7/01/22

 

 

6,750

 

 

6,279,323

 

 

 

 

 

 




 

 

 

 

 

 

8,078,631

 










 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

APRIL 30, 2011

41




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Virginia — 3.2%

 

 

 

 

 

 

 

James City County EDA, Refunding RB, First Mortgage,
Williamsburg Lodge, Series A:

 

 

 

 

 

 

 

5.75%, 3/01/17

 

$

3,285

 

$

3,225,771

 

6.00%, 3/01/23

 

 

1,150

 

 

1,087,486

 

Roanoke Economic Development Authority, Refunding
RB, Carilion Health System, Series B (AGM), 5.00%,
7/01/38

 

 

4,705

 

 

4,457,282

 

Tobacco Settlement Financing Corp. Virginia, RB,
Asset-Backed, 5.63%, 6/01/15 (b)

 

 

7,800

 

 

9,064,614

 

 

 

 

 

 




 

 

 

 

 

 

17,835,153

 









West Virginia — 0.7%

 

 

 

 

 

 

 

West Virginia Hospital Finance Authority, Refunding RB,
Charleston, Series A, 5.13%, 9/01/23

 

 

4,000

 

 

4,016,440

 









Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Housing & EDA, RB, Series C, AMT, 4.85%,
9/01/26

 

 

2,000

 

 

1,937,380

 









Total Municipal Bonds — 139.2%

 

 

 

 

 

764,997,724

 










 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 









California — 5.0%

 

 

 

 

 

 

 

City of San Jose California, GO, Libraries, Parks, and
Public Safety Project (NPFGC), 5.00%, 9/01/30

 

 

3,101

 

 

3,137,188

 

Peralta Community College District, GO, Election of
2000, Series D (AGM), 5.00%, 8/01/30

 

 

10,140

 

 

10,064,863

 

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

 

 

9,028

 

 

9,185,861

 

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

 

 

4,875

 

 

4,884,994

 

 

 

 

 

 




 

 

 

 

 

 

27,272,906

 









Illinois — 2.4%

 

 

 

 

 

 

 

McHenry County Conservation District Illinois, GO
(AGM), 5.13%, 2/01/27

 

 

12,695

 

 

13,092,790

 









Massachusetts — 1.5%

 

 

 

 

 

 

 

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

 

 

8,338

 

 

8,541,480

 









Minnesota — 1.9%

 

 

 

 

 

 

 

State of Minnesota, GO, State Various Purpose, Series A,
4.00%, 8/01/29

 

 

10,525

 

 

10,310,555

 









New Jersey — 2.1%

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series D (AGM), 5.00%,
6/15/19

 

 

11,120

 

 

11,730,488

 









New York — 7.1%

 

 

 

 

 

 

 

City of New York New York, GO, Sub-Series B-1, 5.25%,
9/01/22

 

 

8,250

 

 

9,092,738

 

New York City Municipal Water & Sewer Finance Authority,
Refunding RB, Series A, 4.75%, 6/15/30

 

 

8,000

 

 

8,037,600

 

New York State Urban Development Corp., RB, State
Personal Income Tax, State Facilities, Series A-1
(NPFGC), 5.25%, 3/15/34

 

 

10,000

 

 

10,111,000

 

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

 

 

11,101

 

 

11,882,561

 

 

 

 

 

 




 

 

 

 

 

 

39,123,899

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 







Washington — 2.0%

 

 

 

 

 

 

 

Snohomish County School District No. 15-Edmonds
Washington, GO (NPFGC), 5.00%, 12/01/19

 

$

10,000

 

$

10,902,700

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 22.0%

 

 

 

 

 

120,974,818

 









Total Long-Term Investments
(Cost — $880,653,596) — 161.2%

 

 

 

 

 

885,972,542

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








FFI Institutional Tax-Exempt Fund, 0.23% (f)(g)

 

 

9,713,431

 

 

9,713,431

 









Total Short-Term Securities
(Cost — $9,713,431) — 1.8%

 

 

 

 

 

9,713,431

 









Total Investments (Cost — $890,367,027*) — 163.0%

 

 

 

 

 

895,685,973

 

Other Assets Less Liabilities — 1.4%

 

 

 

 

 

7,589,769

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (12.2)%

 

 

 

 

 

(66,659,441

)

VRDP Shares, at Liquidation Value — (52.2)%

 

 

 

 

 

(287,100,000

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

549,516,301

 

 

 

 

 

 





 

 

 


*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

823,108,489

 

 

 




Gross unrealized appreciation

 

$

23,115,523

 

Gross unrealized depreciation

 

 

(17,146,851

)

 

 




Net unrealized appreciation

 

$

5,968,672

 

 

 





 

 

(a)

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

 

 

(b)

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.

 

 

(c)

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


 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Appreciation

 







Merrill Lynch and Co., Inc.

 

$

3,355,616

 

$

80,128

 










 

 

(d)

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

 

 

(e)

Securities represent bonds transferred to a TOB 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 TOBs.

 

 

(f)

Investments in companies considered to be an affiliate of the Fund during the year, 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
April 30,
2011

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

17,541,876

 

 

(7,828,445

)

 

9,713,431

 

$

14,834

 
















 

 

(g)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.




42

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Schedule of Investments (concluded)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)


 

 

Financial futures contracts sold as of April 30, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 













    282

 

10-Year U.S. Treasury Note

 

Chicago Board of Trade

 

June 2011

 

$

33,420,870

 

$

(740,786

)
















 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad levels for financial statement purposes 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 and derivative financial instruments)

 

 

 

 

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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following tables summarize the inputs used as of April 30, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

885,972,542

 

 

 

$

885,972,542

 

Short-Term Securities

 

$

9,713,431

 

 

 

 

 

 

9,713,431

 

 

 













Total

 

$

9,713,431

 

$

885,972,542

 

 

 

$

895,685,973

 

 

 














 

 

 

 

1

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(740,786

)

 

 

 

 

$

(740,786

)
















 

 

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

APRIL 30, 2011

43




 

 


 

 

Schedule of Investments April 30, 2011

BlackRock MuniVest Fund II, Inc. (MVT)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Alabama — 0.9%

 

 

 

 

 

 

 

Prattville IDB Alabama, RB, International Paper Co.
Project, Series A, AMT, 4.75%, 12/01/30

 

$

3,025

 

$

2,613,570

 









Arizona — 2.1%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

658,990

 

Pima County IDA, RB, Arizona Charter Schools Project,
Series C, 6.75%, 7/01/31

 

 

1,915

 

 

1,730,815

 

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

 

 

1,110

 

 

1,106,659

 

Pima County IDA, Refunding RB, Charter Schools II,
Series A, 6.75%, 7/01/21

 

 

475

 

 

466,232

 

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

 

 

1,980

 

 

1,996,632

 

 

 

 

 

 




 

 

 

 

 

 

5,959,328

 









Arkansas — 0.5%

 

 

 

 

 

 

 

County of Little River Arkansas, Refunding RB,
Georgia-Pacific Corp. Project, AMT, 5.60%, 10/01/26

 

 

1,660

 

 

1,525,606

 









California — 14.9%

 

 

 

 

 

 

 

California Health Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

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

 

 

2,200

 

 

2,057,616

 

Sutter Health, Series B, 6.00%, 8/15/42

 

 

3,170

 

 

3,214,729

 

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

 

 

1,185

 

 

1,224,212

 

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

 

 

800

 

 

796,488

 

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

 

 

5,930

 

 

5,684,617

 

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

 

 

9,475

 

 

9,361,489

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

2,525

 

 

2,697,836

 

6.50%, 4/01/33

 

 

14,925

 

 

16,394,366

 

 

 

 

 

 




 

 

 

 

 

 

41,431,353

 









Colorado — 2.9%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic Health
Initiatives, Series D, 6.25%, 10/01/33

 

 

1,060

 

 

1,110,488

 

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

 

 

2,190

 

 

2,000,434

 

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

 

 

85

 

 

88,267

 

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

8.00%, 12/01/25

 

 

3,300

 

 

3,236,376

 

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

 

 

820

 

 

734,745

 

University of Colorado, RB, Series A, 5.75%, 6/01/28

 

 

750

 

 

822,532

 

 

 

 

 

 




 

 

 

 

 

 

7,992,842

 









Connecticut — 2.3%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,375

 

 

1,315,710

 

Wesleyan University, 5.00%, 7/01/35

 

 

3,385

 

 

3,437,027

 

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

 

 

2,000

 

 

1,576,420

 

 

 

 

 

 




 

 

 

 

 

 

6,329,157

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Delaware — 1.7%

 

 

 

 

 

 

 

County of Sussex Delaware, RB, NRG Energy, Inc.,
Indian River Project, 6.00%, 10/01/40

 

$

1,125

 

$

1,097,629

 

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

 

 

4,065

 

 

3,490,656

 

 

 

 

 

 




 

 

 

 

 

 

4,588,285

 









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

 

 

1,529,934

 

CAB, Second Senior Lien, Series B (AGC), 7.08%,
10/01/34 (a)

 

 

4,830

 

 

1,015,508

 

CAB, Second Senior Lien, Series B (AGC), 7.10%,
10/01/35 (a)

 

 

6,515

 

 

1,269,513

 

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

 

 

1,500

 

 

1,438,455

 

 

 

 

 

 




 

 

 

 

 

 

5,253,410

 









Florida — 7.1%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB, Water & Sewer
System, 5.00%, 10/01/34

 

 

5,680

 

 

5,564,583

 

County of Miami-Dade Florida, Refunding RB, Miami
International Airport:

 

 

 

 

 

 

 

AMT (AGC), 5.00%, 10/01/40

 

 

4,940

 

 

4,303,827

 

Series A-1, 5.38%, 10/01/41

 

 

1,165

 

 

1,104,420

 

Fiddlers Creek Community Development District No. 2,
Special Assessment Bonds (b)(c):

 

 

 

 

 

 

 

Series A, 6.38%, 5/01/35

 

 

2,350

 

 

750,355

 

Series B, 5.75%, 5/01/13

 

 

400

 

 

127,720

 

Hillsborough County IDA, RB:

 

 

 

 

 

 

 

H. Lee Moffitt Cancer Center Project, Series A,
5.25%, 7/01/37

 

 

1,050

 

 

921,564

 

National Gypsum Co., Series B, AMT, 7.13%,
4/01/30

 

 

2,720

 

 

2,381,387

 

Mid-Bay Bridge Authority, RB, Series A, 7.25%,
10/01/40

 

 

2,265

 

 

2,255,532

 

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

 

 

915

 

 

814,423

 

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

 

 

1,200

 

 

696,516

 

Preserve at Wilderness Lake Community Development
District, RB, Series A, 7.10%, 5/01/33

 

 

860

 

 

840,839

 

 

 

 

 

 




 

 

 

 

 

 

19,761,166

 









Georgia — 5.7%

 

 

 

 

 

 

 

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

 

 

845

 

 

817,090

 

Fulton County Residential Care Facilities for the Elderly
Authority, Refunding RB, Canterbury Court Project,
Series A, 6.13%, 2/15/26

 

 

2,000

 

 

1,763,260

 

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

 

 

3,465

 

 

3,464,757

 

Municipal Electric Authority of Georgia, RB, Series W:

 

 

 

 

 

 

 

6.60%, 1/01/18

 

 

5,540

 

 

6,355,045

 

6.60%, 1/01/18 (d)

 

 

380

 

 

422,176

 

Municipal Electric Authority of Georgia, Refunding RB,
Series X, 6.50%, 1/01/20

 

 

1,205

 

 

1,408,416

 

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

 

 

1,525

 

 

1,537,017

 

 

 

 

 

 




 

 

 

 

 

 

15,767,761

 









Guam — 0.8%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

630

 

 

630,397

 

6.75%, 11/15/29

 

 

895

 

 

892,431

 

7.00%, 11/15/39

 

 

615

 

 

628,432

 

 

 

 

 

 




 

 

 

 

 

 

2,151,260

 










 

 

 

See Notes to Financial Statements.

 




44

ANNUAL REPORT

APRIL 30, 2011




 

 

 

 


 

 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Hawaii — 0.5%

 

 

 

 

 

 

 

State of Hawaii, Refunding RB, Series A, 5.25%,
7/01/30

 

$

1,355

 

$

1,366,680

 









Idaho — 0.0%

 

 

 

 

 

 

 

Idaho Housing & Finance Association, Refunding RB,
S/F Mortgage, Senior Series E-2, AMT, 6.90%, 1/01/27

 

 

5

 

 

5,006

 









Illinois — 15.1%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB, General, Third
Lien, Series C, 6.50%, 1/01/41 (e)

 

 

5,865

 

 

6,249,979

 

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

 

 

800

 

 

725,200

 

City of Chicago Illinois, Tax Allocation Bonds, Kingsbury
Redevelopment Project, Series A, 6.57%, 2/15/13

 

 

700

 

 

698,838

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Advocate Health Care Network, Series D, 6.50%,
11/01/38

 

 

5,000

 

 

5,275,800

 

Community Rehabilitation, 6.50%, 7/01/22

 

 

470

 

 

450,880

 

Community Rehabilitation, 6.50%, 7/01/12 (f)

 

 

530

 

 

572,782

 

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

 

 

1,540

 

 

1,546,745

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Central DuPage Health, Series B, 5.50%, 11/01/39

 

 

1,610

 

 

1,530,144

 

Friendship Village Schaumburg, Series A, 5.63%,
2/15/37

 

 

250

 

 

190,612

 

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

 

 

 

 

 

 

 

Series B, 5.00%, 6/15/50

 

 

3,150

 

 

2,748,658

 

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

 

 

2,500

 

 

2,130,975

 

Railsplitter Tobacco Settlement Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

1,335

 

 

1,288,115

 

6.00%, 6/01/28

 

 

1,140

 

 

1,096,384

 

Regional Transportation Authority, RB:

 

 

 

 

 

 

 

Series A (AMBAC), 7.20%, 11/01/20

 

 

1,380

 

 

1,635,990

 

Series A (NPFGC), 6.70%, 11/01/21

 

 

7,000

 

 

8,155,350

 

Series C (NPFGC), 7.75%, 6/01/20

 

 

2,500

 

 

3,018,325

 

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

 

 

630

 

 

609,487

 

Village of Hodgkins Illinois, RB, MBM Project, AMT,
6.00%, 11/01/23

 

 

2,800

 

 

2,800,056

 

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

 

 

1,550

 

 

1,379,810

 

 

 

 

 

 




 

 

 

 

 

 

42,104,130

 









Indiana — 5.8%

 

 

 

 

 

 

 

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

 

 

840

 

 

774,858

 

Indiana Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit, Series B-5, 5.00%,
11/15/36

 

 

1,500

 

 

1,372,755

 

Parkview Health System, Series A, 5.75%, 5/01/31

 

 

3,295

 

 

3,315,956

 

Indiana Health & Educational Facilities Financing
Authority, RB, Clarian Health Obligation, Series A,
5.25%, 2/15/40

 

 

500

 

 

435,940

 

Indiana Transportation Finance Authority, RB, Series A:

 

 

 

 

 

 

 

7.25%, 6/01/15

 

 

160

 

 

160,894

 

6.80%, 12/01/16

 

 

3,290

 

 

3,706,054

 

Indianapolis Local Public Improvement Bond Bank,
Refunding RB, Series D, 6.75%, 2/01/14

 

 

5,890

 

 

6,311,135

 

 

 

 

 

 




 

 

 

 

 

 

16,077,592

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Kansas — 0.6%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB,
Sisters of Leavenworth, Series A, 5.00%, 1/01/40

 

$

1,660

 

$

1,586,877

 









Kentucky — 0.3%

 

 

 

 

 

 

 

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

 

 

1,010

 

 

958,268

 









Louisiana — 5.1%

 

 

 

 

 

 

 

Louisiana Local Government Environmental Facilities &
Community Development Authority, RB, Westlake
Chemical Corp., Series A-1, 6.50%, 11/01/35

 

 

3,320

 

 

3,332,815

 

Port of New Orleans Louisiana, Refunding RB,
Continental Grain Co. Project, 6.50%, 1/01/17

 

 

7,500

 

 

7,276,650

 

Sabine River Authority Louisiana, Refunding RB,
International Paper Co. Project, 6.20%, 2/01/25

 

 

3,600

 

 

3,606,624

 

 

 

 

 

 




 

 

 

 

 

 

14,216,089

 









Maryland — 1.8%

 

 

 

 

 

 

 

County of Montgomery Maryland, GO, West Germantown
Development District, Senior Series A (Radian), 6.70%,
7/01/27

 

 

1,175

 

 

1,210,908

 

Maryland Community Development Administration,
Refunding RB, Residential, Series D, AMT, 4.90%,
9/01/42

 

 

1,500

 

 

1,348,035

 

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

 

 

435

 

 

397,894

 

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

 

 

830

 

 

794,169

 

Maryland Health & Higher Educational Facilities
Authority, RB, University of Maryland Medical System,
Series B (NPFGC), 7.00%, 7/01/22

 

 

1,000

 

 

1,148,480

 

 

 

 

 

 




 

 

 

 

 

 

4,899,486

 









Massachusetts — 4.2%

 

 

 

 

 

 

 

Massachusetts HFA, HRB, Series A, AMT, 5.20%,
12/01/37

 

 

3,000

 

 

2,795,730

 

Massachusetts HFA, RB, S/F, Series 130, AMT, 5.00%,
12/01/32

 

 

2,720

 

 

2,542,710

 

Massachusetts HFA, Refunding HRB, AMT:

 

 

 

 

 

 

 

Series D, 4.85%, 6/01/40

 

 

2,770

 

 

2,441,949

 

Series F, 5.70%, 6/01/40

 

 

2,185

 

 

2,109,749

 

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

 

 

1,805

 

 

1,688,595

 

 

 

 

 

 




 

 

 

 

 

 

11,578,733

 









Michigan — 7.5%

 

 

 

 

 

 

 

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

 

 

910

 

 

1,061,670

 

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

 

 

2,695

 

 

2,542,328

 

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

 

 

1,380

 

 

1,313,401

 

Michigan State Hospital Finance Authority,
Refunding RB:

 

 

 

 

 

 

 

Henry Ford Health System, Series A, 5.25%,
11/15/46

 

 

7,050

 

 

5,882,238

 

McLaren Health Care, 5.75%, 5/15/38

 

 

8,560

 

 

8,579,346

 

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

 

 

1,400

 

 

1,587,278

 

 

 

 

 

 




 

 

 

 

 

 

20,966,261

 










 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2011

45




 

 

 

 


 

 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Mississippi — 1.5%

 

 

 

 

 

 

 

County of Lowndes Mississippi, Refunding RB,
Weyerhaeuser Co. Project, Series A, 6.80%, 4/01/22

 

$

3,000

 

$

3,108,810

 

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

 

 

1,065

 

 

1,085,342

 

 

 

 

 

 




 

 

 

 

 

 

4,194,152

 









Nevada — 0.2%

 

 

 

 

 

 

 

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

 

 

565

 

 

559,966

 









New Jersey — 2.8%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.50%, 6/15/24

 

 

2,420

 

 

2,250,673

 

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

 

 

3,000

 

 

2,734,470

 

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

 

 

1,210

 

 

1,291,518

 

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

 

 

1,910

 

 

1,609,060

 

 

 

 

 

 




 

 

 

 

 

 

7,885,738

 









New York — 9.5%

 

 

 

 

 

 

 

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

 

 

9,405

 

 

10,571,220

 

Metropolitan Transportation Authority, Refunding RB,
Transportation, Series D, 5.25%, 11/15/40

 

 

1,205

 

 

1,180,165

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

1,920

 

 

1,926,701

 

Series C, 6.80%, 6/01/28

 

 

690

 

 

711,452

 

Special Needs Facilities Pooled Program,
Series C-1, 6.50%, 7/01/17

 

 

890

 

 

854,622

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

6,700

 

 

6,771,355

 

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

 

 

1,221,147

 

Port Authority of New York & New Jersey, RB, JFK
International Air Terminal:

 

 

 

 

 

 

 

6.00%, 12/01/36

 

 

1,165

 

 

1,124,365

 

6.00%, 12/01/42

 

 

1,250

 

 

1,194,500

 

Westchester County Industrial Development Agency
New York, RB, Special Needs Facilities Pooled
Program, Series E-1, 6.50%, 7/01/17

 

 

1,000

 

 

960,250

 

 

 

 

 

 




 

 

 

 

 

 

26,515,777

 









North Carolina — 1.5%

 

 

 

 

 

 

 

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

 

 

1,264,759

 

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

 

 

1,400

 

 

1,332,184

 

North Carolina Medical Care Commission, Refunding
RB, Carolina Village Project, 6.00%, 4/01/38

 

 

2,000

 

 

1,647,060

 

 

 

 

 

 




 

 

 

 

 

 

4,244,003

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Pennsylvania — 5.3%

 

 

 

 

 

 

 

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

 

$

4,250

 

$

3,158,642

 

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

 

 

880

 

 

825,326

 

Lancaster County Hospital Authority, RB, Brethren
Village Project, Series A, 6.50%, 7/01/40

 

 

2,000

 

 

1,859,740

 

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

 

 

470

 

 

393,926

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,890

 

 

1,858,437

 

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

 

 

2,000

 

 

1,612,800

 

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

 

 

3,915

 

 

3,748,652

 

Philadelphia Authority for Industrial Development, RB,
Commercial Development, AMT, 7.75%, 12/01/17

 

 

1,265

 

 

1,265,607

 

 

 

 

 

 




 

 

 

 

 

 

14,723,130

 









Puerto Rico — 2.5%

 

 

 

 

 

 

 

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

 

 

2,490

 

 

2,436,764

 

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

 

 

4,255

 

 

4,439,241

 

 

 

 

 

 




 

 

 

 

 

 

6,876,005

 









South Carolina — 1.2%

 

 

 

 

 

 

 

South Carolina State Ports Authority, RB, 5.25%,
7/01/40

 

 

3,280

 

 

3,236,343

 









Tennessee — 0.3%

 

 

 

 

 

 

 

Johnson City Health & Educational Facilities Board, RB,
Appalachian Christian Village Project, Series A, 6.00%,
2/15/24

 

 

1,000

 

 

896,780

 









Texas — 10.4%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

630,660

 

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

 

 

3,000

 

 

3,020,700

 

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

 

 

1,510

 

 

1,565,055

 

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

 

 

4,820

 

 

4,722,443

 

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

 

 

2,000

 

 

2,169,480

 

North Texas Tollway Authority, Refunding RB, First Tier,
Series A, 6.25%, 1/01/39

 

 

7,000

 

 

7,135,730

 

Sabine River Authority Texas, Refunding RB, TXU
Electric Co. Project, Series B, Mandatory Put Bonds,
AMT, 5.75%, 5/01/30 (g)

 

 

2,250

 

 

2,203,560

 

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

 

 

 

 

 

 

 

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

 

 

3,950

 

 

4,024,576

 

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

 

 

3,375

 

 

3,462,412

 

 

 

 

 

 




 

 

 

 

 

 

28,934,616

 









U.S. Virgin Islands — 2.1%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

5,804,220

 









Utah — 0.9%

 

 

 

 

 

 

 

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

 

 

2,780

 

 

2,575,892

 










 

 

 

See Notes to Financial Statements.

 




46

ANNUAL REPORT

APRIL 30, 2011




 

 



 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)

 

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Virginia — 1.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.13%, 10/01/37

 

$

1,000

 

$

857,650

 

5.13%, 10/01/42

 

 

3,440

 

 

2,889,600

 

 

 

 

 

 




 

 

 

 

 

 

3,747,250

 









Washington — 2.1%

 

 

 

 

 

 

 

Washington Health Care Facilities Authority, RB, Swedish
Health Services, Series A, 6.75%, 11/15/41

 

 

1,980

 

 

2,052,943

 

Washington Health Care Facilities Authority, Refunding
RB, Catholic Health Initiatives, Series D, 6.38%,
10/01/36

 

 

3,700

 

 

3,874,270

 

 

 

 

 

 




 

 

 

 

 

 

5,927,213

 









Wisconsin — 4.4%

 

 

 

 

 

 

 

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

 

 

7,100

 

 

7,631,506

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

2,465

 

 

2,318,924

 

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

 

 

2,215

 

 

2,225,854

 

 

 

 

 

 




 

 

 

 

 

 

12,176,284

 









Total Municipal Bonds — 127.7%

 

 

 

 

 

355,430,229

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

 

 

 

 

 

 









California — 3.4%

 

 

 

 

 

 

 

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

 

 

3,271

 

 

3,376,857

 

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

 

 

2,610

 

 

2,677,599

 

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

 

 

2,290

 

 

2,272,047

 

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

 

 

1,077

 

 

1,094,768

 

 

 

 

 

 




 

 

 

 

 

 

9,421,271

 









Colorado — 0.8%

 

 

 

 

 

 

 

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

 

 

2,129

 

 

2,132,033

 









Connecticut — 2.2%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB, Yale University, Series Z-3, 5.05%,
7/01/42

 

 

6,000

 

 

6,130,320

 









Illinois — 1.6%

 

 

 

 

 

 

 

City of Chicago Illinois Water, Refunding RB,
Second Lien (AGM), 5.25%, 11/01/33

 

 

1,320

 

 

1,324,448

 

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

 

 

2,999

 

 

3,032,599

 

 

 

 

 

 




 

 

 

 

 

 

4,357,047

 









Maryland — 0.8%

 

 

 

 

 

 

 

Maryland State Transportation Authority, RB,
Transportation Facility Project (AGM), 5.00%, 7/01/41

 

 

2,290

 

 

2,320,137

 









Massachusetts — 3.7%

 

 

 

 

 

 

 

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

 

 

10,000

 

 

10,243,600

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

Par
(000)

 

Value

 







New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

$

2,009

 

$

2,081,214

 









New York — 4.9%

 

 

 

 

 

 

 

New York City Municipal Water & Sewer Finance
Authority, RB:

 

 

 

 

 

 

 

Series DD, 5.00%, 6/15/37

 

 

6,299

 

 

6,302,366

 

Series FF-2, 5.50%, 6/15/40

 

 

1,575

 

 

1,641,485

 

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

 

 

5,790

 

 

5,797,270

 

 

 

 

 

 




 

 

 

 

 

 

13,741,121

 









North Carolina — 2.2%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Duke University Project, Series A,
5.00%, 10/01/41

 

 

6,239

 

 

6,286,036

 









Ohio — 5.8%

 

 

 

 

 

 

 

Ohio Higher Educational Facility Commission,
Refunding RB, Hospital, Cleveland Clinic Health,
Series A, 5.25%, 1/01/33

 

 

2,400

 

 

2,345,160

 

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

 

 

13,840

 

 

13,722,222

 

 

 

 

 

 




 

 

 

 

 

 

16,067,382

 









South Carolina — 1.9%

 

 

 

 

 

 

 

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

 

 

4,995

 

 

5,236,458

 









Texas — 6.5%

 

 

 

 

 

 

 

Harris County Health Facilities Development Corp.,
Refunding RB, School Health Care System, Series B,
5.75%, 7/01/27 (d)

 

 

10,000

 

 

11,851,500

 

Texas Department of Housing & Community Affairs,
MRB, Series B, AMT (Ginnie Mae), 5.25%, 9/01/32

 

 

3,531

 

 

3,433,952

 

Texas State University Systems, Refunding RB (AGM),
5.00%, 3/15/30

 

 

2,743

 

 

2,783,528

 

 

 

 

 

 




 

 

 

 

 

 

18,068,980

 









Washington — 6.1%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit Authority, RB,
Series A:

 

 

 

 

 

 

 

5.00%, 11/01/34

 

 

5,000

 

 

5,038,650

 

5.00%, 11/01/36

 

 

4,000

 

 

4,030,920

 

(AGM), 5.00%, 11/01/32

 

 

7,693

 

 

7,834,500

 

 

 

 

 

 




 

 

 

 

 

 

16,904,070

 









Wisconsin — 0.8%

 

 

 

 

 

 

 

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

 

 

2,499

 

 

2,287,821

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 41.4%

 

 

 

 

 

115,277,490

 









Total Long-Term Investments
(Cost — $470,942,491) — 169.1%

 

 

 

 

 

470,707,719

 










 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2011

47




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 







FFI Institutional Tax-Exempt Fund, 0.23% (i)(j)

 

 

5,653,323

 

$

5,653,323

 









 

 

 

 

 

 

 

 

 

 

Par
(000)

 

 

 

 








Michigan Finance Authority, RB, SAN, Detroit Schools,
Series A-1, 6.45%, 2/02/12

 

$

3,255

 

 

3,275,409

 









Total Short-Term Securities
(Cost — $8,908,323) — 3.2%

 

 

 

 

 

8,928,732

 









Total Investments (Cost — $479,850,814*) — 172.3%

 

 

 

 

 

479,636,451

 

Other Assets Less Liabilities — 0.3%

 

 

 

 

 

767,484

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (22.3)%

 

 

 

 

 

(62,094,919

)

AMPS, at Redemption Value — (50.3)%

 

 

 

 

 

(140,025,090

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

278,283,926

 

 

 

 

 

 





 

 

 


*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

418,792,193

 

 

 

 




 

Gross unrealized appreciation

 

$

15,854,725

 

 

Gross unrealized depreciation

 

 

(17,055,243

)

 

 

 




 

Net unrealized depreciation

 

$

(1,200,518

)

 

 

 





 

 

(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.

 

 

(e)

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


 

 

 

 

 

 

 

 

 

 







 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 







 

CitiGroup Global Markets

 

$

6,249,979

 

$

63,108

 

 










 

 

(f)

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.

 

 

(g)

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

 

 

(h)

Securities represent bonds transferred to a TOB 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 TOBs.

 

 

(i)

Investments in companies considered to be an affiliate of the Fund during the year, 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
April 30,
2011

 

Income

 

 











 

FFI Institutional Tax-Exempt Fund

 

 

552,231

 

 

5,101,092

 

 

5,653,323

 

$

7,593

 

 
















 

 

(j)

Represents the current yield as of report date.

 

 

Financial futures contracts sold as of April 30, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

 













 

    204

 

10-Year U.S.

 

Chicago Board

 

June 2011

 

$

24,176,800

 

$

(535,888

)

 

 

 

Treasury Note

 

of Trade

 

 

 

 

 

 

 

 

 

 














 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad levels for financial statement purposes 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 and derivative financial instruments)

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 derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of April 30, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

 

$

470,707,719

 

 

 

$

470,707,719

 

Short-Term
Securities

 

$

5,653,323

 

 

3,275,409

 

 

 

 

8,928,732

 

 

 













Total

 

$

5,653,323

 

$

473,983,128

 

 

 

$

479,636,451

 

 

 














 

 

 

 

1

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Derivative Financial
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

(535,888

)

 

 

 

 

$

(535,888

)
















 

 

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


See Notes to Financial Statements.

 

 

 




48

ANNUAL REPORT

APRIL 30, 2011




 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2011

 

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

 

$

445,412,074

 

$

498,398,208

 

$

325,746,415

 

$

238,884,060

 

$

271,442,320

 

$

885,972,542

 

$

473,983,128

 

Investments at value — affiliated2

 

 

1,560,240

 

 

3,470,954

 

 

6,564,515

 

 

3,999,689

 

 

6,952,084

 

 

9,713,431

 

 

5,653,323

 

Cash pledged as collateral for financial futures contracts

 

 

225,000

 

 

330,000

 

 

295,000

 

 

220,000

 

 

120,000

 

 

545,000

 

 

395,000

 

Cash

 

 

 

 

 

 

 

 

 

 

9,375

 

 

 

 

 

TOB Trust receivable

 

 

5,070,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments sold receivable

 

 

1,035,641

 

 

 

 

100,000

 

 

50,000

 

 

277,688

 

 

2,625,029

 

 

40,000

 

Interest receivable

 

 

8,553,795

 

 

7,723,989

 

 

5,685,111

 

 

3,996,253

 

 

4,199,855

 

 

14,035,991

 

 

8,689,030

 

Income receivable — affiliated

 

 

 

 

 

 

 

 

 

 

 

 

279

 

 

 

Prepaid expenses

 

 

21,655

 

 

30,012

 

 

15,672

 

 

17,739

 

 

12,046

 

 

61,829

 

 

19,632

 

Other assets

 

 

 

 

 

 

 

 

 

 

 

 

103,224

 

 

 

Deferred offering costs

 

 

 

 

68,382

 

 

 

 

 

 

 

 

1,044,207

 

 

 

 

 






















Total assets

 

 

461,878,405

 

 

510,021,545

 

 

338,406,713

 

 

247,167,741

 

 

283,013,368

 

 

914,101,532

 

 

488,780,113

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Accrued Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Bank overdraft

 

 

 

 

347

 

 

454

 

 

 

 

 

 

145,852

 

 

 

Investments purchased payable

 

 

2,211,527

 

 

236,158

 

 

4,277,538

 

 

3,096,073

 

 

1,418,814

 

 

6,879,589

 

 

6,186,871

 

Income dividends payable — Common Shares

 

 

2,233,870

 

 

1,678,830

 

 

1,266,850

 

 

914,904

 

 

958,674

 

 

2,719,498

 

 

1,828,858

 

Investment advisory fees payable

 

 

209,335

 

 

212,230

 

 

153,596

 

 

112,127

 

 

113,214

 

 

417,176

 

 

201,581

 

Margin variation payable

 

 

21,750

 

 

31,875

 

 

28,500

 

 

21,375

 

 

20,625

 

 

52,875

 

 

38,250

 

Interest expense and fees payable

 

 

7,291

 

 

58,356

 

 

31,579

 

 

24,893

 

 

22,805

 

 

50,629

 

 

50,143

 

Officer’s and Directors’ fees payable

 

 

1,260

 

 

945

 

 

868

 

 

398

 

 

505

 

 

106,416

 

 

1,173

 

Offering costs payable

 

 

 

 

68,382

 

 

 

 

 

 

 

 

317,772

 

 

 

Other accrued expenses payable

 

 

191,469

 

 

299,231

 

 

85,604

 

 

68,434

 

 

89,377

 

 

186,612

 

 

119,445

 

 

 






















Total accrued liabilities

 

 

4,876,502

 

 

2,586,354

 

 

5,844,989

 

 

4,238,204

 

 

2,624,014

 

 

10,876,419

 

 

8,426,321

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Trust certificates3

 

 

23,111,092

 

 

61,582,907

 

 

43,487,622

 

 

33,617,184

 

 

31,665,414

 

 

66,608,812

 

 

62,044,776

 

VRDP Shares, at liquidation value of $100,000 per share4,5

 

 

 

 

 

 

 

 

 

 

 

 

287,100,000

 

 

 

 

 






















Total other liabilities

 

 

23,111,092

 

 

61,582,907

 

 

43,487,622

 

 

33,617,184

 

 

31,665,414

 

 

353,708,812

 

 

62,044,776

 

 

 






















Total Liabilities

 

 

27,987,594

 

 

64,169,261

 

 

49,332,611

 

 

37,855,388

 

 

34,289,428

 

 

364,585,231

 

 

70,471,097

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























AMPS at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























$25,000 per share at liquidation preference, plus unpaid dividends4,5

 

 

 

 

142,588,554

 

 

83,705,661

 

 

55,053,584

 

 

87,004,310

 

 

 

 

140,025,090

 

 

 






















Net Assets Applicable to Common Shareholders

 

$

433,890,811

 

$

303,263,730

 

$

205,368,441

 

$

154,258,769

 

$

161,719,630

 

$

549,516,301

 

$

278,283,926

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Investments at cost — unaffiliated

 

$

466,433,218

 

$

506,317,873

 

$

333,161,016

 

$

242,181,740

 

$

273,218,071

 

$

880,653,596

 

$

474,197,491

 

 

 

 






















 

2 Investments at cost — affiliated

 

$

1,560,240

 

$

3,470,954

 

$

6,564,515

 

$

3,999,689

 

$

6,952,084

 

$

9,713,431

 

$

5,653,323

 

 

 

 






















 

3 Represents short-term floating rate certificates issued by TOBs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 AMPS/VRDP 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

 

 

2,871

 

 

1,280

 

 

 

 






















 

5 AMPS/VRDP Shares authorized

 

 

 

 

7,480

 

 

5,000

 

 

3,480

 

 

5,360

 

 

15,671

 

 

7,000

 

 

 

 























See Notes to Financial Statements.

 

 

 




ANNUAL REPORT

APRIL 30, 2011

49




 


 

Statements of Assets and Liabilities (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2011

 

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

 

$

479,397,343

 

$

315,451,778

 

$

208,494,144

 

$

154,320,908

 

$

174,480,906

 

$

540,458,418

 

$

282,471,742

 

Undistributed net investment income

 

 

1,662,370

 

 

5,981,672

 

 

4,260,439

 

 

3,703,185

 

 

3,342,889

 

 

9,402,200

 

 

5,996,321

 

Undistributed (accumulated) net realized gain (loss)

 

 

(25,843,038

)

 

(9,803,482

)

 

427,748

 

 

(168,177

)

 

(14,170,800

)

 

(4,922,477

)

 

(9,433,886

)

Net unrealized appreciation/ depreciation

 

 

(21,325,864

)

 

(8,366,238

)

 

(7,813,890

)

 

(3,597,147

)

 

(1,933,365

)

 

4,578,160

 

 

(750,251

)

 

 






















Net Assets Applicable to Common Shareholders

 

$

433,890,811

 

$

303,263,730

 

$

205,368,441

 

$

154,258,769

 

$

161,719,630

 

$

549,516,301

 

$

278,283,926

 

 

 






















Net asset value per Common Share

 

$

12.14

 

$

10.30

 

$

14.67

 

$

13.74

 

$

12.48

 

$

14.45

 

$

13.47

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 Common shares outstanding, $0.10 par value

 

 

35,741,923

 

 

29,453,152

 

 

13,998,348

 

 

11,225,822

 

 

12,955,055

 

 

38,034,934

 

 

20,664,937

 

 

 






















7 Common Shares authorized

 

 

200 million

 

 

200 million

 

 

200 million

 

 

200 million

 

 

200 million

 

 

200 million

 

 

200 million

 

 

 























See Notes to Financial Statements.

 

 

 




50

ANNUAL REPORT

APRIL 30, 2011




 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30, 2011

 

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

 

$

20,202,378

 

$

25,441,021

 

$

18,588,449

 

$

13,454,146

 

$

13,836,330

 

$

44,204,013

 

$

27,038,498

 

Income — affiliated

 

 

4,801

 

 

9,877

 

 

5,499

 

 

3,240

 

 

13,319

 

 

14,834

 

 

7,593

 

 

 






















Total income

 

 

20,207,179

 

 

25,450,898

 

 

18,593,948

 

 

13,457,386

 

 

13,849,649

 

 

44,218,847

 

 

27,046,091

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Investment advisory

 

 

1,687,308

 

 

2,583,323

 

 

1,874,413

 

 

1,366,423

 

 

1,570,594

 

 

5,002,868

 

 

2,450,653

 

Reorganization

 

 

216,405

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounting services

 

 

69,462

 

 

97,113

 

 

70,885

 

 

57,800

 

 

58,344

 

 

144,940

 

 

91,876

 

Professional

 

 

69,000

 

 

107,482

 

 

171,503

 

 

67,809

 

 

82,991

 

 

223,911

 

 

106,453

 

Transfer agent

 

 

47,356

 

 

74,513

 

 

42,599

 

 

35,202

 

 

36,254

 

 

87,354

 

 

58,306

 

Officer and Directors

 

 

29,989

 

 

35,236

 

 

24,218

 

 

17,809

 

 

18,875

 

 

74,113

 

 

32,544

 

Custodian

 

 

19,453

 

 

27,791

 

 

19,690

 

 

14,950

 

 

16,649

 

 

44,297

 

 

25,501

 

Printing

 

 

18,096

 

 

28,535

 

 

19,309

 

 

15,167

 

 

18,802

 

 

50,549

 

 

26,680

 

Registration

 

 

9,661

 

 

10,277

 

 

9,534

 

 

9,405

 

 

9,733

 

 

13,201

 

 

16,317

 

Commissions for AMPS

 

 

 

 

213,567

 

 

126,504

 

 

83,029

 

 

129,121

 

 

402,504

 

 

209,051

 

Liquidity fees

 

 

 

 

178,125

 

 

 

 

 

 

 

 

1,218,381

 

 

 

Miscellaneous

 

 

29,849

 

 

71,277

 

 

55,558

 

 

49,936

 

 

61,301

 

 

104,462

 

 

77,094

 

 

 






















Total expenses excluding interest expense, fees and amortization of offering costs

 

 

2,196,579

 

 

3,427,239

 

 

2,414,213

 

 

1,717,530

 

 

2,002,664

 

 

7,366,580

 

 

3,094,475

 

Interest expense, fees and amortization of offering costs1

 

 

110,566

 

 

459,275

 

 

328,214

 

 

251,164

 

 

240,693

 

 

735,807

 

 

459,187

 

 

 






















Total expenses

 

 

2,307,145

 

 

3,886,514

 

 

2,742,427

 

 

1,968,694

 

 

2,243,357

 

 

8,102,387

 

 

3,553,662

 

Less fees waived by advisor

 

 

(1,532

)

 

(2,604

)

 

(1,607

)

 

(970

)

 

(160,621

)

 

(116,534

)

 

(2,329

)

 

 






















Total expenses after fees waived

 

 

2,305,613

 

 

3,883,910

 

 

2,740,820

 

 

1,967,724

 

 

2,082,736

 

 

7,985,853

 

 

3,551,333

 

 

 






















Net investment income

 

 

17,901,566

 

 

21,566,988

 

 

15,853,128

 

 

11,489,662

 

 

11,766,913

 

 

36,232,994

 

 

23,494,758

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(1,475,021

)

 

(745,074

)

 

792,717

 

 

588,399

 

 

(1,335,342

)

 

2,847,724

 

 

(1,391,898

)

Financial futures contracts

 

 

6,998

 

 

(170,355

)

 

5,726

 

 

4,454

 

 

8,271

 

 

 

 

(213,064

)

 

 






















 

 

 

(1,468,023

)

 

(915,429

)

 

798,443

 

 

592,853

 

 

(1,327,071

)

 

2,847,724

 

 

(1,604,962

)

 

 






















Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(8,268,479

)

 

(16,907,355

)

 

(14,359,991

)

 

(10,090,500

)

 

(9,518,968

)

 

(14,004,082

)

 

(18,171,056

)

Financial futures contracts

 

 

(304,720

)

 

(446,573

)

 

(399,289

)

 

(299,467

)

 

(157,614

)

 

(740,786

)

 

(535,888

)

 

 






















 

 

 

(8,573,199

)

 

(17,353,928

)

 

(14,759,280

)

 

(10,389,967

)

 

(9,676,582

)

 

(14,744,868

)

 

(18,706,944

)

 

 






















Total realized and unrealized loss

 

 

(10,041,222

)

 

(18,269,357

)

 

(13,960,837

)

 

(9,797,114

)

 

(11,003,653

)

 

(11,897,144

)

 

(20,311,906

)

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Dividends and Distributions to AMPS Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net investment income

 

 

 

 

(895,488

)

 

(425,020

)

 

(217,592

)

 

(360,146

)

 

(3,940,263

)

 

(921,768

)

Net realized gain

 

 

 

 

 

 

(45,016

)

 

(16,958

)

 

 

 

 

 

 

 

 






















Total dividends and distributions to AMPS Shareholders

 

 

 

 

(895,488

)

 

(470,036

)

 

(234,550

)

 

(360,146

)

 

(3,940,263

)

 

(921,768

)

 

 






















Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

7,860,344

 

$

2,402,143

 

$

1,422,255

 

$

1,457,998

 

$

403,114

 

$

20,395,587

 

$

2,261,084

 

 

 























 

 

 

 

1

Related to TOBs and/or VRDP Shares.


 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2011

51




 


 

Statements of Changes in Net Assets


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock MuniAssets
Fund, Inc. (MUA)

 

BlackRock
MuniEnhanced Fund, Inc. (MEN)

 

 

 


 



 

 

Year Ended April 30,

 

Year Ended April 30,

 

 

 


 



Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

2011

 

2010

 

2011

 

2010

 











Operations

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

$

17,901,566

 

$

16,818,625

 

$

21,566,988

 

$

22,103,824

 

Net realized loss

 

 

(1,468,023

)

 

(505,303

)

 

(915,429

)

 

(2,514,799

)

Net change in unrealized appreciation/depreciation

 

 

(8,573,199

)

 

43,885,403

 

 

(17,353,928

)

 

33,008,361

 

Dividends to AMPS Shareholders from net investment income

 

 

 

 

 

 

(895,488

)

 

(972,174

)

 

 






 







Net increase in net assets applicable to Common Shareholders resulting from operations

 

 

7,860,344

 

 

60,198,725

 

 

2,402,143

 

 

51,625,212

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

 

(17,952,389

)

 

(17,164,842

)

 

(20,117,032

)

 

(18,620,500

)

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 















Value of Common shares issued from reorganization

 

 

176,471,885

 

 

 

 

 

 

 

Reinvestment of common dividends

 

 

679,731

 

 

1,897,902

 

 

895,425

 

 

 

 

 






 







Net increase in net assets applicable to Common Shareholders derived from capital share transactions

 

 

177,151,616

 

 

1,897,902

 

 

895,425

 

 

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

167,059,571

 

 

44,931,785

 

 

(16,819,464

)

 

33,004,712

 

Beginning of year

 

 

266,831,240

 

 

221,899,455

 

 

320,083,194

 

 

287,078,482

 

 

 






 







End of year

 

$

433,890,811

 

$

266,831,240

 

$

303,263,730

 

$

320,083,194

 

 

 






 







Undistributed net investment income

 

$

1,662,370

 

$

825,801

 

$

5,981,672

 

$

5,467,206

 

 

 






 








 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
MuniHoldings Fund, Inc. (MHD)

 

BlackRock
MuniHoldings Fund II, Inc. (MUH)

 

 

 


 



 

 

Year Ended April 30,

 

Year Ended April 30,

 

 

 


 



Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

2011

 

2010

 

2011

 

2010

 











Operations

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

$

15,853,128

 

$

15,784,697

 

$

11,489,662

 

$

11,430,386

 

Net realized gain

 

 

798,443

 

 

983,601

 

 

592,853

 

 

848,274

 

Net change in unrealized appreciation/depreciation

 

 

(14,759,280

)

 

32,294,227

 

 

(10,389,967

)

 

22,414,189

 

Dividends and distributions to AMPS Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(425,020

)

 

(478,200

)

 

(217,592

)

 

(252,975

)

Net realized gain

 

 

(45,016

)

 

(21,023

)

 

(16,958

)

 

 

 

 






 







Net increase in net assets applicable to Common Shareholders resulting from operations

 

 

1,422,255

 

 

48,563,302

 

 

1,457,998

 

 

34,439,874

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

 

(14,941,651

)

 

(13,840,853

)

 

(10,870,379

)

 

(10,095,056

)

Net realized gain

 

 

(1,505,648

)

 

(323,547

)

 

(807,254

)

 

 

 

 






 







Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(16,447,299

)

 

(14,164,400

)

 

(11,677,633

)

 

(10,095,056

)

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 















Reinvestment of common dividends and distributions

 

 

1,260,083

 

 

49,523

 

 

756,581

 

 

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

(13,764,961

)

 

34,448,425

 

 

(9,463,054

)

 

24,344,818

 

Beginning of year

 

 

219,133,402

 

 

184,684,977

 

 

163,721,823

 

 

139,377,005

 

 

 






 







End of year

 

$

205,368,441

 

$

219,133,402

 

$

154,258,769

 

$

163,721,823

 

 

 






 







Undistributed net investment income

 

$

4,260,439

 

$

3,774,667

 

$

3,703,185

 

$

3,333,318

 

 

 






 








 

 

 

See Notes to Financial Statements.


52

ANNUAL REPORT

APRIL 30, 2011




 


 

Statements of Changes in Net Assets (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock MuniHoldings
Quality Fund, Inc. (MUS)

 

BlackRock Muni Intermediate
Duration Fund, Inc. (MUI)

 

 

 


 



 

 

Year Ended April 30,

 

Year Ended April 30,

 

 

 


 



Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

2011

 

2010

 

2011

 

2010

 











Operations

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

$

11,766,913

 

$

12,056,685

 

$

36,232,994

 

$

38,883,136

 

Net realized gain (loss)

 

 

(1,327,071

)

 

(267,028

)

 

2,847,724

 

 

735,933

 

Net change in unrealized appreciation/depreciation

 

 

(9,676,582

)

 

12,924,699

 

 

(14,744,868

)

 

59,229,788

 

Dividends to AMPS Shareholders from net investment income

 

 

(360,146

)

 

(395,183

)

 

(3,940,263

)

 

(4,345,317

)

 

 






 







Net increase in net assets applicable to Common Shareholders resulting from operations

 

 

403,114

 

 

24,319,173

 

 

20,395,587

 

 

94,503,540

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 















Net investment income

 

 

(11,484,081

)

 

(10,496,334

)

 

(32,019,140

)

 

(29,610,196

)

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 















Reinvestment of common dividends

 

 

823,393

 

 

93,344

 

 

 

 

 

 

 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

(10,257,574

)

 

13,916,183

 

 

(11,623,553

)

 

64,893,344

 

Beginning of year

 

 

171,977,204

 

 

158,061,021

 

 

561,139,854

 

 

496,246,510

 

 

 






 







End of year

 

$

161,719,630

 

$

171,977,204

 

$

549,516,301

 

$

561,139,854

 

 

 






 







Undistributed net investment income

 

$

3,342,889

 

$

3,457,495

 

$

9,402,200

 

$

9,085,845

 

 

 






 








 

 

 

 

 

 

 

 

 

 

BlackRock MuniVest
Fund II, Inc. (MVT)

 

 

 



 

 

Year Ended April 30,

 

 

 



Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

2011

 

2010

 







Operations

 

 

 

 

 

 

 









Net investment income

 

$

23,494,758

 

$

24,074,947

 

Net realized gain (loss)

 

 

(1,604,962

)

 

1,639,858

 

Net change in unrealized appreciation/depreciation

 

 

(18,706,944

)

 

45,862,257

 

Dividends to AMPS Shareholders from net investment income

 

 

(921,768

)

 

(992,540

)

 

 







Net increase in net assets applicable to Common Shareholders resulting from operations

 

 

2,261,084

 

 

70,584,522

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(21,675,139

)

 

(20,330,657

)

 

 







 

 

 

 

 

 

 

 









Capital Share Transactions

 

 

 

 

 

 

 









Reinvestment of common dividends

 

 

2,232,641

 

 

1,628,414

 

 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

(17,181,414

)

 

51,882,279

 

Beginning of year

 

 

295,465,340

 

 

243,583,061

 

 

 







End of year

 

$

278,283,926

 

$

295,465,340

 

 

 







Undistributed net investment income

 

$

5,996,321

 

$

5,098,804

 

 

 








 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2011

53




 


 

Statements of Cash Flows


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30, 2011

 

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)

 















Cash Provided by Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in net assets resulting from operations, excluding dividends to AMPS Shareholders

 

$

3,297,631

 

$

1,892,291

 

$

1,692,548

 

$

763,260

 

$

24,335,850

 

$

3,182,852

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in interest receivable

 

 

(327,946

)

 

168,799

 

 

69,452

 

 

26,131

 

 

(71,927

)

 

96,710

 

Decrease in prepaid expenses

 

 

11,381

 

 

6,490

 

 

6,820

 

 

8,121

 

 

12,252

 

 

19,415

 

Increase in cash pledged as collateral for financial futures contracts

 

 

(330,000

)

 

(295,000

)

 

(220,000

)

 

(120,000

)

 

(545,000

)

 

(395,000

)

Increase in other assets

 

 

 

 

 

 

 

 

 

 

(16,858

)

 

 

Decrease in income receivable — affiliated

 

 

 

 

 

 

 

 

 

 

48

 

 

 

Increase (decrease) in investment advisory fees payable

 

 

(15,013

)

 

(10,776

)

 

(7,710

)

 

(4,286

)

 

23,255

 

 

(13,160

)

Increase (decrease) in interest expense and fees payable

 

 

(11,572

)

 

(547

)

 

(881

)

 

(3,525

)

 

(5,668

)

 

189

 

Decrease in other affiliates payable

 

 

(3,231

)

 

(2,106

)

 

(1,533

)

 

(1,795

)

 

(5,588

)

 

(3,043

)

Increase in other accrued expenses payable

 

 

233,471

 

 

29,034

 

 

21,053

 

 

37,639

 

 

95,463

 

 

40,230

 

Increase in margin variation payable

 

 

31,875

 

 

28,500

 

 

21,375

 

 

20,625

 

 

52,875

 

 

38,250

 

Increase (decrease) in Officer’s and Directors’ fees payable

 

 

212

 

 

389

 

 

46

 

 

(90

)

 

18,329

 

 

166

 

Net realized and unrealized loss on investments

 

 

17,652,429

 

 

13,567,274

 

 

9,502,101

 

 

10,854,310

 

 

11,173,216

 

 

19,562,954

 

Amortization of premium and accretion of discount on investments

 

 

(230,212

)

 

38,882

 

 

(341,973

)

 

597,303

 

 

2,203,059

 

 

68,722

 

Proceeds from sales of long-term investments

 

 

44,071,565

 

 

56,635,773

 

 

42,757,951

 

 

77,496,614

 

 

185,468,575

 

 

82,818,369

 

Purchases of long-term investments

 

 

(50,190,447

)

 

(53,205,851

)

 

(38,933,772

)

 

(80,059,381

)

 

(203,301,489

)

 

(80,208,195

)

Net proceeds from sales (purchases) of short-term securities

 

 

3,736,469

 

 

(5,464,861

)

 

(5,021,954

)

 

1,701,582

 

 

7,828,445

 

 

(8,356,092

)

 

 



















Cash provided by operating activities

 

 

17,926,612

 

 

13,388,291

 

 

9,543,523

 

 

11,316,508

 

 

27,264,837

 

 

16,852,367

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Cash Used for Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Cash receipts from trust certificates

 

 

3,728,310

 

 

3,779,156

 

 

2,747,390

 

 

1,060,000

 

 

9,259,998

 

 

3,859,531

 

Cash payments for trust certificates

 

 

(1,539,999

)

 

(1,580,000

)

 

(1,150,000

)

 

(1,350,000

)

 

 

 

(410,270

)

Cash payments on redemption of AMPS

 

 

 

 

 

 

 

 

 

 

(287,175,000

)

 

 

Cash receipts from issuance of VRDP Shares

 

 

 

 

 

 

 

 

 

 

287,100,000

 

 

 

Increase in deferred offering costs

 

 

(68,382

)

 

 

 

 

 

 

 

(1,044,207

)

 

 

Increase in offering costs payable

 

 

68,382

 

 

 

 

 

 

 

 

317,772

 

 

 

Cash dividends paid to Common Shareholders

 

 

(19,216,860

)

 

(15,117,160

)

 

(10,905,597

)

 

(10,656,118

)

 

(31,790,930

)

 

(19,377,197

)

Cash dividends paid to AMPS Shareholders

 

 

(898,410

)

 

(470,741

)

 

(235,316

)

 

(361,015

)

 

(4,022,305

)

 

(924,431

)

Increase in custodian bank payable

 

 

347

 

 

454

 

 

 

 

 

 

89,835

 

 

 

 

 



















Cash used for financing activities

 

 

(17,926,612

)

 

(13,388,291

)

 

(9,543,523

)

 

(11,307,133

)

 

(27,264,837

)

 

(16,852,367

)

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net increase (decrease) in cash

 

 

 

 

 

 

 

 

9,375

 

 

 

 

 

Cash at beginning of year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



















Cash at end of year

 

 

 

 

 

 

 

$

9,375

 

 

 

 

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Cash paid during the year for interest and fees

 

$

470,847

 

$

328,761

 

$

252,045

 

$

244,218

 

$

516,059

 

$

458,998

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Noncash Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital shares issued in reinvestment of dividends paid to Common Shareholders

 

$

895,425

 

$

1,260,083

 

$

756,581

 

$

823,393

 

 

 

$

2,232,641

 

 

 



















A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the year, based on the average borrowing outstanding in relation to average total assets.

 

 

 

See Notes to Financial Statements.

 




54

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Financial Highlights

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Year Ended
April 30,

 

Period
June 1,
2008 to
April 30,
2009

 

Year Ended May 31,

 

 

 

 

 

 

 

 


 

 


 

 

 

2011

 

2010

 

 

2008

 

2007

 

2006

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.63

 

$

10.59

 

$

12.79

 

$

13.87

 

$

13.65

 

$

13.40

 

 

 



















Net investment income1

 

 

0.73

 

 

0.80

 

 

0.72

 

 

0.78

 

 

0.82

 

 

0.81

 

Net realized and unrealized gain (loss)

 

 

(0.46

)

 

2.06

 

 

(2.18

)

 

(1.04

)

 

0.24

 

 

0.27

 

 

 



















Net increase (decrease) from investment operations

 

 

0.27

 

 

2.86

 

 

(1.46

)

 

(0.26

)

 

1.06

 

 

1.08

 

 

 



















Dividends and distributions from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.76

)

 

(0.82

)

 

(0.74

)

 

(0.82

)

 

(0.84

)

 

(0.83

)

Net realized gain

 

 

 

 

 

 

 

 

(0.00

)2

 

 

 

 

 

 



















Total dividends and distributions

 

 

(0.76

)

 

(0.82

)

 

(0.74

)

 

(0.82

)

 

(0.84

)

 

(0.83

)

 

 



















Net asset value, end of period

 

$

12.14

 

$

12.63

 

$

10.59

 

$

12.79

 

$

13.87

 

$

13.65

 

 

 



















Market price, end of period

 

$

11.27

 

$

12.65

 

$

10.91

 

$

13.35

 

$

15.29

 

$

14.13

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

2.31

%

 

27.72

%

 

(11.29

)%4

 

(1.90

)%

 

7.72

%

 

8.31

%

 

 



















Based on market price

 

 

(5.17

)%

 

24.17

%

 

(12.45

)%4

 

(7.12

)%

 

14.71

%

 

13.22

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses

 

 

0.78

%

 

0.72

%

 

0.77

%5

 

0.70

%

 

0.68

%

 

0.68

%

 

 



















Total expenses after fees waived and paid indirectly

 

 

0.78

%

 

0.72

%

 

0.76

%5

 

0.69

%

 

0.68

%

 

0.68

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees6

 

 

0.74

%

 

0.67

%

 

0.70

%5

 

0.66

%

 

0.68

%

 

0.68

%

 

 



















Net investment income

 

 

6.07

%

 

6.72

%

 

7.13

%5

 

5.81

%

 

5.91

%

 

5.97

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets, end of period (000)

 

$

433,891

 

$

266,831

 

$

221,899

 

$

266,913

 

$

287,367

 

$

280,793

 

 

 



















Portfolio turnover

 

 

24

%

 

44

%

 

23

%

 

23

%

 

25

%

 

17

%

 

 




















 

 

 

 

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 TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.


 

 

 

 

See Notes to Financial Statements.

 

 


 

ANNUAL REPORT

APRIL 30, 2011

55




 

 


 

 

Financial Highlights

BlackRock MuniEnhanced Fund, Inc. (MEN)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Year Ended
April 30,

 

Period
February 1,
2009 to
April 30,
2009

 

Year Ended January 31,

 

 

 

 

 

 

 

 


 

 



 

 

2011

 

2010

 

 

2009

 

2008

 

2007

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

10.90

 

$

9.77

 

$

9.15

 

$

11.16

 

$

11.55

 

$

11.52

 

 

 



















Net investment income1

 

 

0.73

 

 

0.75

 

 

0.18

 

 

0.72

 

 

0.78

 

 

0.76

 

Net realized and unrealized gain (loss)

 

 

(0.62

)

 

1.04

 

 

0.58

 

 

(2.02

)

 

(0.41

)

 

0.06

 

Dividends to AMPS Shareholders from net investment income

 

 

(0.03

)

 

(0.03

)

 

(0.01

)

 

(0.19

)

 

(0.24

)

 

(0.22

)

 

 



















Net increase (decrease) from investment operations

 

 

0.08

 

 

1.76

 

 

0.75

 

 

(1.49

)

 

0.13

 

 

0.60

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.68

)

 

(0.63

)

 

(0.13

)

 

(0.52

)

 

(0.52

)

 

(0.57

)

 

 



















Net asset value, end of period

 

$

10.30

 

$

10.90

 

$

9.77

 

$

9.15

 

$

11.16

 

$

11.55

 

 

 



















Market price, end of period

 

$

9.99

 

$

10.81

 

$

8.88

 

$

8.31

 

$

10.66

 

$

10.77

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

0.78

%

 

18.76

%

 

8.40

%3

 

(13.19

)%

 

1.44

%

 

5.66

%

 

 



















Based on market price

 

 

(1.44

)%

 

29.59

%

 

8.48

%3

 

(17.46

)%

 

3.92

%

 

2.90

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.24

%

 

1.20

%

 

1.46

%5

 

1.77

%

 

1.72

%

 

1.69

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.24

%

 

1.20

%

 

1.45

%5

 

1.76

%

 

1.72

%

 

1.69

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,6

 

 

1.09

%

 

1.04

%

 

1.22

%5

 

1.18

%

 

1.08

%

 

1.08

%

 

 



















Net investment income4

 

 

6.89

%

 

7.17

%

 

7.72

%5

 

7.43

%

 

6.85

%

 

6.57

%

 

 



















Dividends to AMPS Shareholders

 

 

0.29

%

 

0.32

%

 

0.56

%5

 

1.92

%

 

2.08

%

 

1.88

%

 

 



















Net investment income to Common Shareholders

 

 

6.60

%

 

6.85

%

 

7.16

%5

 

5.51

%

 

4.77

%

 

4.69

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

303,264

 

$

320,083

 

$

287,078

 

$

268,689

 

$

327,711

 

$

339,237

 

 

 



















AMPS outstanding at $25,000 liquidation preference, end of period (000)

 

$

142,575

 

$

142,575

 

$

158,850

 

$

158,850

 

$

187,000

 

$

187,000

 

 

 



















Portfolio turnover

 

 

9

%

 

23

%

 

6

%

 

24

%

 

18

%

 

31

%

 

 



















Asset coverage per AMPS at $25,000 liquidation preference, end of period

 

$

78,179

 

$

81,128

 

$

70,185

 

$

67,294

 

$

68,834

 

$

70,373

 

 

 




















 

 

 

 

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 AMPS Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.


 

 

 

See Notes to Financial Statements.

 


56

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Financial Highlights

BlackRock MuniHoldings Fund, Inc. (MHD)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 



 

 

2011

 

2010

 

2009

 

2008

 

2007

 













Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net asset value, beginning of year

 

$

15.75

 

$

13.27

 

$

15.20

 

$

16.51

 

$

16.14

 

 

 
















Net investment income1

 

 

1.14

 

 

1.13

 

 

1.07

 

 

1.16

 

 

1.17

 

Net realized and unrealized gain (loss)

 

 

(1.01

)

 

2.39

 

 

(1.94

)

 

(1.20

)

 

0.42

 

Dividends and distributions to AMPS Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.03

)

 

(0.03

)

 

(0.18

)

 

(0.31

)

 

(0.32

)

Net realized gain

 

 

(0.00

)2

 

(0.00

)2

 

(0.01

)

 

(0.03

)

 

 

 

 
















Net increase (decrease) from investment operations

 

 

0.10

 

 

3.49

 

 

(1.06

)

 

(0.38

)

 

1.27

 

 

 
















Dividends and distributions to Common shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(1.07

)

 

(0.99

)

 

(0.85

)

 

(0.85

)

 

(0.90

)

Net realized gain

 

 

(0.11

)

 

(0.02

)

 

(0.02

)

 

(0.08

)

 

 

 

 
















Total dividends and distributions to Common Shareholders

 

 

(1.18

)

 

(1.01

)

 

(0.87

)

 

(0.93

)

 

(0.90

)

 

 
















Net asset value, end of year

 

$

14.67

 

$

15.75

 

$

13.27

 

$

15.20

 

$

16.51

 

 

 
















Market price, end of year

 

$

14.51

 

$

15.70

 

$

11.97

 

$

14.77

 

$

16.49

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Based on net asset value

 

 

0.57

%

 

27.31

%

 

(6.24

)%

 

(2.08

)%

 

8.06

%

 

 
















Based on market price

 

 

(0.21

)%

 

40.68

%

 

(12.97

)%

 

(4.74

)%

 

7.52

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 


















Total expenses4

 

 

1.28

%

 

1.25

%

 

1.65

%

 

1.56

%

 

1.54

%

 

 
















Total expenses after fees waived and paid indirectly4

 

 

1.28

%

 

1.25

%

 

1.64

%

 

1.56

%

 

1.54

%

 

 
















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,5

 

 

1.13

%

 

1.11

%

 

1.25

%

 

1.20

%

 

1.17

%

 

 
















Net investment income4

 

 

7.41

%

 

7.67

%

 

7.98

%

 

7.27

%

 

7.14

%

 

 
















Dividends to AMPS Shareholders

 

 

0.20

%

 

0.24

%

 

1.32

%

 

1.96

%

 

1.93

%

 

 
















Net investment income to Common Shareholders

 

 

7.21

%

 

7.43

%

 

6.66

%

 

5.31

%

 

5.20

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net assets applicable to Common Shareholders, end of year (000)

 

$

205,368

 

$

219,133

 

$

184,685

 

$

211,429

 

$

229,376

 

 

 
















AMPS outstanding at $25,000 liquidation preference, end of year (000)

 

$

83,700

 

$

83,700

 

$

91,925

 

$

125,000

 

$

125,000

 

 

 
















Portfolio turnover

 

 

15

%

 

41

%

 

19

%

 

30

%

 

20

%

 

 
















Asset coverage per AMPS at $25,000 liquidation preference, end of year

 

$

86,342

 

$

90,454

 

$

75,230

 

$

67,294

 

$

70,889

 

 

 

















 

 

 

 

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

Do not reflect the effect of dividends to AMPS Shareholders.

 

 

 

 

5

Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.


 

 

 

 

See Notes to Financial Statements.

 

 


 

ANNUAL REPORT

APRIL 30, 2011

57




 

 


 

 

Financial Highlights

BlackRock MuniHoldings Fund II, Inc. (MUH)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended
April 30,

 

Period
August 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

Year Ended July 31,

 

 

 


 

 



 

 

2011

 

2010

 

 

2008

 

2007

 

2006

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

14.65

 

$

12.47

 

$

13.66

 

$

14.78

 

$

14.82

 

$

15.03

 

 

 



















Net investment income1

 

 

1.03

 

 

1.02

 

 

0.72

 

 

1.04

 

 

1.05

 

 

1.04

 

Net realized and unrealized gain (loss)

 

 

(0.88

)

 

2.08

 

 

(1.22

)

 

(1.14

)

 

(0.05

)

 

(0.11

)

Dividends to AMPS Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.02

)

 

(0.02

)

 

(0.10

)

 

(0.26

)

 

(0.27

)

 

(0.23

)

Net realized gain

 

 

(0.00

)2

 

 

 

 

 

 

 

 

 

 

 

 



















Net increase (decrease) from investment operations

 

 

0.13

 

 

3.08

 

 

(0.60

)

 

(0.36

)

 

0.73

 

 

0.70

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.97

)

 

(0.90

)

 

(0.59

)

 

(0.76

)

 

(0.77

)

 

(0.91

)

Net realized gain

 

 

(0.07

)

 

 

 

 

 

 

 

 

 

 

 

 



















Total dividends and distributions

 

 

(1.04

)

 

(0.90

)

 

(0.59

)

 

(0.76

)

 

(0.77

)

 

(0.91

)

 

 



















Net asset value, end of period

 

$

13.74

 

$

14.65

 

$

12.47

 

$

13.66

 

$

14.78

 

$

14.82

 

 

 



















Market price, end of period

 

$

13.35

 

$

14.68

 

$

11.33

 

$

13.01

 

$

13.99

 

$

14.12

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

0.92

%

 

25.71

%

 

(3.55

)%4

 

(2.30

)%

 

5.08

%

 

4.89

%

 

 



















Based on market price

 

 

(2.14

)%

 

38.64

%

 

(7.99

)%4

 

(1.69

)%

 

4.39

%

 

(1.50

)%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses5

 

 

1.23

%

 

1.25

%

 

1.60

%6

 

1.55

%

 

1.63

%

 

1.44

%

 

 



















Total expenses after fees waived5

 

 

1.23

%

 

1.25

%

 

1.60

%6

 

1.55

%

 

1.63

%

 

1.44

%

 

 



















Total expenses after fees waived and excluding interest expense and fees5,7

 

 

1.07

%

 

1.10

%

 

1.22

%6

 

1.18

%

 

1.19

%

 

1.18

%

 

 



















Net investment income5

 

 

7.18

%

 

7.41

%

 

7.84

%6

 

7.07

%

 

6.97

%

 

7.04

%

 

 



















Dividends to AMPS Shareholders

 

 

0.14

%

 

0.16

%

 

1.07

%6

 

1.79

%

 

1.82

%

 

1.55

%

 

 



















Net investment income to Common Shareholders

 

 

7.04

%

 

7.25

%

 

6.77

%6

 

5.28

%

 

5.15

%

 

5.49

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

154,259

 

$

163,722

 

$

139,377

 

$

152,633

 

$

165,185

 

$

165,565

 

 

 



















AMPS outstanding at $25,000 liquidation preference, end of period (000)

 

$

55,050

 

$

55,050

 

$

61,000

 

$

61,000

 

$

87,000

 

$

87,000

 

 

 



















Portfolio turnover

 

 

15

%

 

41

%

 

19

%

 

28

%

 

15

%

 

49

%

 

 



















Asset coverage per AMPS at $25,000 liquidation preference, end of period

 

$

95,056

 

$

99,353

 

$

81,123

 

$

87,562

 

$

72,478

 

$

72,555

 

 

 




















 

 

 

 

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 AMPS Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

7

Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.


 

 

 

See Notes to Financial Statements.


58

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Financial Highlights

BlackRock MuniHoldings Quality Fund, Inc. (MUS)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 



 

 

2011

 

2010

 

2009

 

2008

 

2007

 













Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net asset value, beginning of year

 

$

13.34

 

$

12.27

 

$

13.31

 

$

14.10

 

$

13.80

 

 

 
















Net investment income1

 

 

0.91

 

 

0.94

 

 

0.93

 

 

1.05

 

 

0.93

 

Net realized and unrealized gain (loss)

 

 

(0.85

)

 

0.97

 

 

(1.20

)

 

(0.87

)

 

0.36

 

Dividends to AMPS Shareholders from net investment income

 

 

(0.03

)

 

(0.03

)

 

(0.19

)

 

(0.38

)

 

(0.36

)

 

 
















Net increase (decrease) from investment operations

 

 

0.03

 

 

1.88

 

 

(0.46

)

 

(0.20

)

 

0.93

 

 

 
















Dividends to Common Shareholders from net investment income

 

 

(0.89

)

 

(0.81

)

 

(0.58

)

 

(0.59

)

 

(0.63

)

 

 
















Net asset value, end of year

 

$

12.48

 

$

13.34

 

$

12.27

 

$

13.31

 

$

14.10

 

 

 
















Market price, end of year

 

$

12.31

 

$

13.40

 

$

10.87

 

$

11.97

 

$

13.13

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Based on net asset value

 

 

0.21

%

 

16.05

%

 

(2.52

)%

 

(0.95

)%

 

7.29

%

 

 
















Based on market price

 

 

(1.60

)%

 

31.59

%

 

(3.97

)%

 

(4.34

)%

 

5.25

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total expenses3

 

 

1.34

%

 

1.36

%

 

1.88

%

 

1.64

%

 

1.67

%

 

 
















Total expenses after fees waived3

 

 

1.25

%

 

1.20

%

 

1.65

%

 

1.51

%

 

1.56

%

 

 
















Total expenses after fees waived and excluding interest expense and fees3,4

 

 

1.10

%

 

1.04

%

 

1.17

%

 

1.27

%

 

1.23

%

 

 
















Net investment income3

 

 

7.04

%

 

7.23

%

 

7.69

%

 

7.72

%

 

6.62

%

 

 
















Dividends to AMPS Shareholders

 

 

0.21

%

 

0.24

%

 

1.61

%

 

2.80

%

 

2.59

%

 

 
















Net investment income to Common Shareholders

 

 

6.83

%

 

6.99

%

 

6.08

%

 

4.92

%

 

4.03

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net assets applicable to Common Shareholders, end of year (000)

 

$

161,720

 

$

171,977

 

$

158,061

 

$

171,510

 

$

181,640

 

 

 
















AMPS outstanding at $25,000 liquidation preference, end of year (000)

 

$

87,000

 

$

87,000

 

$

94,200

 

$

134,000

 

$

134,000

 

 

 
















Portfolio turnover

 

 

28

%

 

22

%

 

35

%

 

57

%

 

29

%

 

 
















Asset coverage per AMPS at $25,000 liquidation preference, end of year

 

$

71,472

 

$

74,420

 

$

66,951

 

$

57,008

 

$

58,903

 

 

 

















 

 

 

 

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

Do not reflect the effect of dividends to AMPS Shareholders.

 

 

 

 

4

Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.


 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

APRIL 30, 2011

59




 

 


 

 

Financial Highlights

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
June 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended
April 30,

 

 

Year Ended May 31,

 

 

 


 

 



 

 

2011

 

2010

 

 

2008

 

2007

 

2006

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

14.75

 

$

13.05

 

$

14.45

 

$

15.10

 

$

15.07

 

$

15.51

 

 

 



















Net investment income1

 

 

0.95

 

 

1.02

 

 

0.89

 

 

1.04

 

 

1.03

 

 

1.04

 

Net realized and unrealized gain (loss)

 

 

(0.31

)

 

1.57

 

 

(1.42

)

 

(0.63

)

 

0.18

 

 

(0.15

)

Dividends and distributions to AMPS Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.10

)

 

(0.11

)

 

(0.23

)

 

(0.33

)

 

(0.28

)

 

(0.21

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.04

)

 

(0.04

)

 

 



















Net increase (decrease) from investment operations

 

 

0.54

 

 

2.48

 

 

(0.76

)

 

0.08

 

 

0.89

 

 

0.64

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.84

)

 

(0.78

)

 

(0.64

)

 

(0.73

)

 

(0.74

)

 

(0.84

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.12

)

 

(0.23

)

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.84

)

 

(0.78

)

 

(0.64

)

 

(0.73

)

 

(0.86

)

 

(1.07

)

 

 



















Capital charges with respect to issuance of AMPS shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.01

)

 

 



















Net asset value, end of period

 

$

14.45

 

$

14.75

 

$

13.05

 

$

14.45

 

$

15.10

 

$

15.07

 

 

 



















Market price, end of period

 

$

13.65

 

$

14.13

 

$

11.77

 

$

13.70

 

$

14.85

 

$

14.52

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

3.86

%

 

19.85

%

 

(4.56

)%3

 

0.86

%

 

6.14

%

 

4.71

%

 

 



















Based on market price

 

 

2.41

%

 

27.29

%

 

(9.21

)%3

 

(2.76

)%

 

8.34

%

 

12.25

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.45

%

 

1.20

%

 

1.44

%5

 

1.30

%

 

1.31

%

 

1.24

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.43

%

 

1.10

%

 

1.25

%5

 

1.07

%

 

1.07

%

 

1.00

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs4,6

 

 

1.30

%

 

1.01

%

 

1.02

%5

 

0.90

%

 

0.87

%

 

0.87

%

 

 



















Net investment income4

 

 

6.48

%

 

7.22

%

 

7.46

%5

 

6.97

%

 

6.71

%

 

6.82

%

 

 



















Dividends to AMPS Shareholders

 

 

(0.70

)%

 

0.81

%

 

1.94

%5

 

2.23

%

 

1.80

%

 

1.36

%

 

 



















Net investment income to Common Shareholders

 

 

5.78

%

 

6.41

%

 

5.52

%5

 

4.74

%

 

4.91

%

 

5.46

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

549,516

 

$

561,140

 

$

496,247

 

$

549,415

 

$

574,225

 

$

573,034

 

 

 



















AMPS outstanding at $25,000 liquidation preference, end of period (000)

 

 

 

$

287,175

 

$

287,175

 

$

320,000

 

$

320,000

 

$

320,000

 

 

 



















VRDP Shares outstanding at $100,000 liquidation value, end of year (000)

 

$

287,100

 

 

 

 

 

 

 

 

 

 

 

 

 



















Portfolio turnover

 

 

21

%

 

29

%

 

13

%

 

14

%

 

12

%

 

49

%

 

 



















Asset coverage per AMPS at $25,000 liquidation preference, end of period

 

 

 

$

73,857

 

$

68,207

 

$

67,941

 

$

69,875

 

$

69,781

 

 

 



















Asset coverage per VRDP Share at $100,000 liquidation value, end of year

 

$

291,402

 

 

 

 

 

 

 

 

 

 

 

 

 




















 

 

 

 

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 AMPS Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.


 

 

 

See Notes to Financial Statements.


60

ANNUAL REPORT

APRIL 30, 2011




 

 


 

 

Financial Highlights

BlackRock MuniVest Fund II, Inc. (MVT)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
November 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended
April 30,

 

 

Year Ended October 31,

 

 

 


 

 



 

 

2011

 

2010

 

 

2008

 

2007

 

2006

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

14.41

 

$

11.95

 

$

10.95

 

$

14.49

 

$

15.35

 

$

15.13

 

 

 



















Net investment income1

 

 

1.14

 

 

1.18

 

 

0.53

 

 

1.12

 

 

1.16

 

 

1.16

 

Net realized and unrealized gain (loss)

 

 

(0.99

)

 

2.32

 

 

0.95

 

 

(3.49

)

 

(0.84

)

 

0.35

 

Dividends to AMPS Shareholders from net investment income

 

 

(0.04

)

 

(0.05

)

 

(0.05

)

 

(0.32

)

 

(0.32

)

 

(0.29

)

 

 



















Net increase (decrease) from investment operations

 

 

0.11

 

 

3.45

 

 

1.43

 

 

(2.69

)

 

 

 

1.22

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(1.05

)

 

(0.99

)

 

(0.43

)

 

(0.85

)

 

(0.86

)

 

(1.00

)

 

 



















Net asset value, end of period

 

$

13.47

 

$

14.41

 

$

11.95

 

$

10.95

 

$

14.49

 

$

15.35

 

 

 



















Market price, end of period

 

$

13.72

 

$

14.94

 

$

11.65

 

$

9.75

 

$

13.91

 

$

16.29

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

0.73

%

 

29.75

%

 

13.71

%3

 

(19.33

)%

 

(0.02

)%

 

8.36

%

 

 



















Based on market price

 

 

(1.04

)%

 

37.99

%

 

24.49

%3

 

(25.18

)%

 

(9.56

)%

 

12.98

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.23

%

 

1.25

%

 

1.51

%5

 

1.67

%

 

1.67

%

 

1.61

%

 

 



















Total expenses after fees waived and excluding interest expense and fees4,6

 

 

1.07

%

 

1.10

%

 

1.26

%5

 

1.16

%

 

1.12

%

 

1.11

%

 

 



















Net investment income4

 

 

8.14

%

 

8.72

%

 

9.77

%5

 

8.03

%

 

7.74

%

 

7.70

%

 

 



















Dividends to AMPS Shareholders

 

 

0.32

%

 

0.36

%

 

0.95

%5

 

2.31

%

 

2.11

%

 

1.90

%

 

 



















Net investment income to Common Shareholders

 

 

7.82

%

 

8.36

%

 

8.82

%5

 

5.72

%

 

5.63

%

 

5.80

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

278,284

 

$

295,465

 

$

243,583

 

$

223,210

 

$

293,836

 

$

309,975

 

 

 



















AMPS outstanding at $25,000 liquidation preference, end of period (000)

 

$

140,000

 

$

140,000

 

$

150,800

 

$

150,800

 

$

175,000

 

$

175,000

 

 

 



















Portfolio turnover

 

 

16

%

 

30

%

 

9

%

 

49

%

 

43

%

 

60

%

 

 



















Asset coverage per AMPS at $25,000 liquidation preference, end of period

 

$

74,698

 

$

77,767

 

$

65,388

 

$

62,019

 

$

67,004

 

$

69,307

 

 

 




















 

 

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 AMPS Shareholders.

 

 

5

Annualized.

 

 

6

Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.


 

 

 

 

See Notes to Financial Statements.


 

ANNUAL REPORT

APRIL 30, 2011

61




 


 

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock MuniAssets Fund, Inc. (“MUA”), BlackRock MuniEnhanced Fund, Inc. (“MEN”), BlackRock MuniHoldings Fund, Inc. (“MHD”), BlackRock Muni-Holdings 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 value of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Funds:

Reorganization: The Board of Directors (the “Board”) and shareholders of MUA and the Board and shareholders of BlackRock Apex Municipal Fund, Inc. (“APX”) approved the reorganization of APX into MUA pursuant to which MUA acquired substantially all of the assets and substantially all of the liabilities of APX in exchange for an equal aggregate value of newly-issued Common Shares of MUA.

Each Common Shareholder of APX received Common Shares of MUA in an amount equal to the aggregate net asset value of such Common Shareholder’s APX Common Shares, as determined at the close of business on February 25, 2011, less the costs of APX’s reorganization (although cash was distributed for any fractional Common Shares).

The reorganization was accomplished by a tax-free exchange of Common Shares of MUA in the following amounts and at the following conversion ratio:

 

 

 

 

 

 

 

 

 

 

 









Target Fund

 

Shares Prior to
Reorganization

 

Conversion
Ratio

 

Shares of
MUA

 









APX

 

 

19,990,638

 

 

0.72861057

 

 

14,565,391

 












APX’s net assets and composition of net assets on February 25, 2011, the date of the merger, were as follows:

 

 

 

 

 

 

 

 

 

 

 









Target Fund

 

Net Assets
Applicable to
Common
Shareholders

 

Paid-in
Capital

 

Undistributed
Net Investment
Income

 









APX

 

$

176,471,885

 

$

192,252,646

 

$

670,780

 













 

 

 

 

 

 

 

 







Target Fund

 

Accumulated
Net
Realized Loss

 

Net Unrealized
Depreciation

 









APX

 

$

(8,314,694

)

$

(8,136,847

)









For financial reporting purposes, assets received and shares issued by MUA were recorded at fair value; however, the cost basis of the investments received from APX was carried forward to align ongoing reporting of MUA’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The aggregate net assets of MUA immediately after the acquisition amounted to $433,042,831. APX’s fair value and cost of investments prior to the reorganization was $173,035,802 and $181,172,649, respectively.

The purpose of this transaction was to combine two funds managed by the Manager (as defined in Note 3 below) with the same or substantially similar (but not identical) investment objectives, investment policies, strategies, risks and restrictions. The reorganization was a tax-free event and was effective on February 28, 2011.

Assuming the acquisition had been completed on May 1, 2010, the beginning of the annual reporting period of MUA, the pro forma results of operations for the year ended April 30, 2011, are as follows:

 

 

 

 

Net investment income: $26,815,648

 

 

 

 

Net realized and change in unrealized gain on investments:

 

 

$(16,410,597)

 

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations: $10,405,051

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of MUA that have been included in MUA’s Statement of Operations since February 25, 2011.

Valuation: US GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. 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 registered 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

 

 

 




62

ANNUAL REPORT

APRIL 30, 2011




 


 

Notes to Financial Statements (continued)

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 Funds are 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 counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.

Municipal Bonds Transferred to TOBs: The Funds leverage their assets through the use of 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 year ended April 30, 2011, no TOBs that the Funds participated in were 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.

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, fees and amortization of offering costs 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 April 30, 2011, 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

 












MUA

 

$

43,910,814

 

$

23,111,092

 

 

0.26% – 0.43%

 

MEN

 

$

116,645,005

 

$

61,582,907

 

 

0.26% – 0.36%

 

MHD

 

$

80,625,647

 

$

43,487,622

 

 

0.26% – 0.32%

 

MUH

 

$

61,891,745

 

$

33,617,184

 

 

0.26% – 0.32%

 

MUS

 

$

58,655,636

 

$

31,665,414

 

 

0.26% – 0.41%

 

MUI

 

$

120,974,818

 

$

66,608,812

 

 

0.26% – 0.36%

 

MVT

 

$

115,277,490

 

$

62,044,776

 

 

0.26% – 0.40%

 












For the year ended April 30, 2011, 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

 







MUA

 

$

12,058,374

 

 

0.92%

 

MEN

 

$

61,491,828

 

 

0.75%

 

MHD

 

$

43,372,644

 

 

0.76%

 

MUH

 

$

33,570,944

 

 

0.75%

 

MUS

 

$

31,802,227

 

 

0.76%

 

MUI

 

$

64,427,659

 

 

0.79%

 

MVT

 

$

62,158,566

 

 

0.72%

 









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 values 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 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

 

 

 




ANNUAL REPORT

APRIL 30, 2011

63




 


 

Notes to Financial Statements (continued)

broker-dealers, each party to such transactions 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.

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 AMPS and VRDP 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

 

Year Ended

 

Period

 

Year Ended










MUA

 

April 30, 2011

 

April 30, 2010

 

June 1, 2008 to
April 30, 2009

 

May 31, 2008










MEN

 

April 30, 2011

 

April 30, 2010

 

February 1, 2009
to April 30, 2009

 

January 31, 2009










MHD

 

April 30, 2011

 

April 30, 2010

 

April 30, 2009

 

April 30, 2008










MUH

 

April 30, 2011

 

April 30, 2010

 

August 1, 2008 to
April 30, 2009

 

July 31, 2008










MUS

 

April 30, 2011

 

April 30, 2010

 

April 30, 2009

 

April 30, 2008










MUI

 

April 30, 2011

 

April 30, 2010

 

June 1, 2008 to
April 30, 2009

 

May 31, 2008










MVT

 

April 30, 2011

 

April 30, 2010

 

November 1, 2008
to April 30, 2009

 

October 31, 2008










The statutes of limitations on the Funds’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Fund’s Board, independent 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.

Offering Costs: MEN and MUI incurred costs in connection with its issuance of VRDP Shares, which were recorded as a deferred charge and will be amortized over the 30-year life of the VRDP Shares. Amortization of these costs for MUI is included in interest expense, fees and amortization of offering costs 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 deemed to be minimal due to 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 agreements between the Funds and the counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. 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 recorded by the Funds as unrealized appreciation or depreciation. 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 contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

 

 

 




64

ANNUAL REPORT

APRIL 30, 2011




 


 

Notes to Financial Statements (continued)

 

Derivative Financial Instruments Categorized by Risk Exposure:

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Values of Derivative Financial Instruments as of April 30, 2011

 



Liability Derivatives

 



 

 

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MUI

 

MVT

 

 

















 

Statements of Assets and
Liabilities Location

 

 

 

 

 

 

 

 

 

 

Value

 

 

 

 

 

 

 

 

 

 
























Interest rate contracts

Net unrealized
depreciation*

 

$

304,720

 

$

446,573

 

$

399,289

 

$

299,467

 

$

157,614

 

$

740,786

 

$

535,888

 


























 

 

*

Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s margin variation is reported within the Statements of Assets and Liabilities.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Effect of Derivative Financial Instruments in the Statements of Operations
Year Ended April 30, 2011


 

 

 

Net Realized Gain (Loss) From

 

 

 

 



 

 

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MVT

 

 

 

 

 

 















Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

 

$

6,998

 

$

(170,355

)

$

5,726

 

$

4,454

 

$

8,271

 

$

(213,064

)

 

 

 

























 

 

 

 

Net Change in Unrealized Appreciation/Depreciation on

 

 

 

 



 

 

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MUI

 

MVT

 

 

 

 















Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

 

$

(304,720

)

$

(446,573

)

$

(399,289

)

$

(299,467

)

$

(157,614

)

$

(740,786

)

$

(535,888

)

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended April 30, 2011, the average quarterly balances of outstanding derivative financial instruments were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

























 

 

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MUI

 

MVT

 

 

 

 















Financial futures contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of contracts sold

 

29

 

 

59

 

 

38

 

 

29

 

 

15

 

 

71

 

 

51

 

Average notional value of contracts sold

$

3,436,898

 

$

7,013,712

 

$

4,503,522

 

$

3,377,641

 

$

1,777,706

 

$

8,355,218

 

$

6,044,200

 

























3. Investment Advisory Agreement and Other Transactions with Affiliates:

As of April 30, 2011, The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) were 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:

 

 

 

 

 






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: 0.05% through July 31, 2010 and 0.00% thereafter. For the year ended April 30, 2011, the waiver was $112,432, which is included in fees waived by advisor in the Statements of Operations.

The Manager, for MUS, voluntarily agreed to waive its investment advisory fee on the proceeds of the AMPS 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 year ended April 30, 2011, the waiver was $156,792.

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 included in fees

 

 

 




ANNUAL REPORT

APRIL 30, 2011

65




 


 

Notes to Financial Statements (continued)

waived by advisor in the Statements of Operations. For the year ended April 30, 2011, the amounts waived were as follows:

 

 

 

 

 






MUA

 

$

1,532

 

MEN

 

$

2,604

 

MHD

 

$

1,607

 

MUH

 

$

970

 

MUS

 

$

3,829

 

MUI

 

$

4,102

 

MVT

 

$

2,329

 






The Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM, Inc. 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 period May 1, 2010 to December 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:

 

 

 

 

 






MUA

 

$

3,537

 

MEN

 

$

6,720

 

MHD

 

$

4,443

 

MUH

 

$

3,240

 

MUS

 

$

3,718

 

MUI

 

$

11,774

 

MVT

 

$

6,382

 






Effective January 1, 2011, the Funds no longer reimburse the Manager for accounting services.

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 year ended April 30, 2011, were as follows:

 

 

 

 

 

 

 

 









 

 

Purchases

 

Sales

 







MUA

 

$

75,165,414

 

$

77,872,308

 

MEN

 

$

49,208,155

 

$

44,071,565

 

MHD

 

$

50,632,129

 

$

56,645,773

 

MUH

 

$

37,020,344

 

$

42,752,951

 

MUS

 

$

81,478,195

 

$

77,574,426

 

MUI

 

$

185,807,942

 

$

186,078,991

 

MVT

 

$

76,793,048

 

$

82,511,442

 









5. Income Tax Information:

Reclassifications: US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of April 30, 2011, attributable to amortization methods on fixed income securities, distributions received from a regulated investment company, the sale of bonds received from tender option bond trusts, the reclassification of distributions, non-deductible expenses, the expiration of capital loss carryforwards and securities in default were reclassified to the following accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















 

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MUI

 

MVT

 

















Paid-in capital

 

$

(9,328,011

)

 

 

 

 

 

 

 

 

$

(43,088

)

 

 

Undistributed net investment income

 

$

216,612

 

$

(40,002

)

$

(685

)

$

(31,824

)

$

(37,292

)

$

42,764

 

$

(334

)

Accumulated net realized gain (loss)

 

$

9,111,399

 

$

40,002

 

$

685

 

$

31,824

 

$

37,292

 

$

324

 

$

334

 
























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The tax character of distributions paid during the fiscal years ended April 30, 2011 and April 30, 2010 was as follows:

 
























 

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MUI

 

MVT

 
























Tax-exempt income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4/30/2011

 

$

17,692,426

 

$

21,012,520

 

$

15,260,047

 

$

11,057,513

 

$

11,844,227

 

$

36,127,151

 

$

22,581,030

 

4/30/2010

 

 

16,841,125

 

 

19,592,674

 

 

14,314,693

 

 

10,348,031

 

 

10,891,517

 

 

33,955,513

 

 

21,323,197

 

Ordinary income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4/30/2011

 

 

259,963

 

 

 

 

571,786

 

 

88,940

 

 

 

 

14,580

 

 

15,877

 

4/30/2010

 

 

323,717

 

 

 

 

4,360

 

 

 

 

 

 

 

 

 

Long-term capital gains:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4/30/2011

 

 

 

 

 

 

1,085,502

 

 

765,730

 

 

 

 

 

 

 

4/30/2010

 

 

 

 

 

 

344,570

 

 

 

 

 

 

 

 

 
























Total distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4/30/2011

 

$

17,952,389

 

$

21,012,520

 

$

16,917,335

 

$

11,912,183

 

$

11,844,227

 

$

36,141,731

 

$

22,596,907

 

 

 






















4/30/2010

 

$

17,164,842

 

$

19,592,674

 

$

14,663,623

 

$

10,348,031

 

$

10,891,517

 

$

33,955,513

 

$

21,323,197

 

 

 























 

 

 




66

ANNUAL REPORT

APRIL 30, 2011




 


 

Notes to Financial Statements (continued)

As of April 30, 2011, the tax components of accumulated net earnings (losses) were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























 

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MUI

 

MVT

 

















Undistributed tax-exempt income

 

$

438,975

 

$

5,993,558

 

$

3,850,789

 

$

3,199,226

 

$

3,401,820

 

$

8,637,488

 

$

5,250,651

 

Undistributed ordinary income

 

 

44,057

 

 

 

 

11,090

 

 

3,521

 

 

 

 

10,428

 

 

4,186

 

Capital loss carryforwards

 

 

(24,560,255

)

 

(8,581,746

)

 

 

 

 

 

(12,154,406

)

 

(4,292,922

)

 

(4,202,338

)

Net unrealized gains (losses)*

 

 

(21,429,309

)

 

(9,599,860

)

 

(6,987,582

)

 

(3,264,886

)

 

(4,008,690

)

 

4,702,889

 

 

(5,240,315

)

 

 






















Total

 

$

(45,506,532

)

$

(12,188,048

)

$

(3,125,703

)

$

(62,139

)

$

(12,761,276

)

$

9,057,883

 

$

(4,187,816

)

 

 























 

 

 

 

*

The differences between book-basis and tax-basis net unrealized gains (losses) were attributable primarily to the tax deferral of losses on wash sales and straddles, amortization methods for premiums and discounts on fixed income securities, the accrual of income on securities in default, the deferral of post-October capital losses for tax purposes, the realization for tax purposes of unrealized gains/losses on certain futures contracts, the treatment of residual interests in tender option bond trusts, and the deferral of compensation to directors.

 

 

 

As of April 30, 2011, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













Expires April 30,

 

MUA

 

MEN

 

MUS

 

MUI

 

MVT

 













2012

 

$

5,521,565

 

$

364,714

 

 

 

 

 

 

 

2013

 

 

3,762,613

 

 

 

 

 

 

 

 

 

2014

 

 

3,072,949

 

 

 

 

 

 

 

 

 

2015

 

 

5,065,527

 

 

 

 

 

 

 

 

 

2016

 

 

901,327

 

 

2,508,309

 

$

166,265

 

$

240,595

 

$

4,202,338

 

2017

 

 

3,645,754

 

 

3,540,378

 

 

5,373,343

 

 

321,623

 

 

 

2018

 

 

396,366

 

 

1,225,298

 

 

6,614,798

 

 

3,730,704

 

 

 

2019

 

 

2,194,154

 

 

943,047

 

 

 

 

 

 

 

 

 
















Total

 

$

24,560,255

 

$

8,581,746

 

$

12,154,406

 

$

4,292,922

 

$

4,202,338

 

 

 
















Under the recently enacted Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Funds after April 30, 2011 will not be subject to expiration. In addition, these losses must be utilized prior to the losses incurred in pre-enactment taxable years.

6. Concentration, Market and Credit Risk:

MEN, MHD, MUH, MUS 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 concentrations 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 counterparties 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 April 30, 2011, MUA invested a significant portion of its assets in securities in the health and corporate sectors. MEN invested a significant portion of its assets in securities in the county/city/special district/school district and transportation sectors. MHD, MUH and MVT invested a significant portion of their assets in securities in the health sector. MUS invested a significant portion of its assets in securities in the county/city/special district/school district, utilities and transportation sectors. MUI invested a significant portion of its assets in securities 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, utilities and transportation 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 is authorized to issue 200 million of $0.10 par value shares, all of which were initially classified as Common Shares. The par value for each Fund’s AMPS or VRDP 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.


 

 

 




ANNUAL REPORT

APRIL 30, 2011

67




 


Notes to Financial Statements (continued)

Common Shares

For the years shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

 

 

 

 

 

 

 







 

 

Year Ended
April 30, 2011

 

Year Ended
April 30, 2010

 







MUA

 

52,762

 

 

163,187

 

 

MEN

 

83,278

 

 

 

 

MHD

 

82,143

 

 

3,195

 

 

MUH

 

52,545

 

 

 

 

MUS

 

61,762

 

 

7,093

 

 

MVT

 

158,460

 

 

121,196

 

 









Shares issued and outstanding remained constant for MUI for the years ended April 30, 2010 and April 30, 2011.

AMPS

The AMPS are redeemable at the option of each Fund except MUI, 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 AMPS 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 are not satisfied.

From time to time in the future, each Fund except MUI, may effect repurchases of its AMPS at prices below their liquidation preference as agreed upon by the Fund and seller. Each Fund except MUI, also may redeem its AMPS from time to time as provided in the applicable Governing Instrument. Each Fund except MUI, 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.

MEN, MHD, MUH, MUS and MVT had the following series of AMPS outstanding, effective yields and reset frequency as of April 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Series

 

AMPS

 

Effective
Yield

 

Reset
Frequency
Days

 















MEN

 

 

A1

 

 

1,525

 

 

0.40%

 

28

 

 

 

 

 

B1

 

 

1,525

 

 

0.40%

 

28

 

 

 

 

 

C1

 

 

1,525

 

 

0.40%

 

7

 

 

 

 

 

D2

 

 

1,128

 

 

1.47%

 

7

 

 















MHD

 

 

A1

 

 

1,473

 

 

0.40%

 

7

 

 

 

 

 

B1

 

 

1,473

 

 

0.41%

 

7

 

 

 

 

 

C2

 

 

402

 

 

1.46%

 

7

 

 















MUH

 

 

A1

 

 

1,101

 

 

0.40%

 

7

 

 

 

 

 

B1

 

 

1,101

 

 

0.41%

 

7

 

 















MUS

 

 

A1

 

 

1,740

 

 

0.41%

 

7

 

 

 

 

 

B1

 

 

1,740

 

 

0.40%

 

7

 

 















MVT

 

 

A1

 

 

1,440

 

 

0.37%

 

28

 

 

 

 

 

B1

 

 

1,440

 

 

0.38%

 

28

 

 

 

 

 

C1

 

 

1,440

 

 

0.41%

 

7

 

 

 

 

 

D2

 

 

1,280

 

 

1.46%

 

7

 

 
















 

 

 

 

1

The maximum applicable rate on this series of AMPS 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 AMPS 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 AMPS are cumulative at a rate which is reset every seven or 28 days, respectively, based on the results of an auction. If the AMPS fail to clear the auction on an auction date, each Fund is required to pay the maximum applicable rate on the AMPS to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on the AMPS is as footnoted in the preceding table above. The low, high and average dividend rates on the AMPS for each Fund for the period were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











 

 

Series

 

Low

 

High

 

Average

 











MEN

 

 

A

 

 

0.37%

 

 

0.50%

 

 

0.42%

 

 

 

 

B

 

 

0.38%

 

 

0.50%

 

 

0.42%

 

 

 

 

C

 

 

0.35%

 

 

0.50%

 

 

0.42%

 

 

 

 

D

 

 

1.43%

 

 

1.56%

 

 

1.48%

 















MHD

 

 

A

 

 

0.35%

 

 

0.50%

 

 

0.42%

 

 

 

 

B

 

 

0.35%

 

 

0.50%

 

 

0.42%

 

 

 

 

C

 

 

1.43%

 

 

1.56%

 

 

1.48%

 















MUH

 

 

A

 

 

0.35%

 

 

0.50%

 

 

0.42%

 

 

 

 

B

 

 

0.35%

 

 

0.50%

 

 

0.41%

 















MUS

 

 

A

 

 

0.35%

 

 

0.50%

 

 

0.41%

 

 

 

 

B

 

 

0.35%

 

 

0.50%

 

 

0.42%

 















MUI

 

 

M7

 

 

1.43%

 

 

1.56%

 

 

1.48%

 

 

 

 

T7

 

 

1.43%

 

 

1.56%

 

 

1.48%

 

 

 

 

W7

 

 

1.43%

 

 

1.56%

 

 

1.48%

 

 

 

 

TH7

 

 

1.43%

 

 

1.56%

 

 

1.48%

 

 

 

 

F7

 

 

1.43%

 

 

1.56%

 

 

1.48%

 

 

 

 

TH28

 

 

1.43%

 

 

1.52%

 

 

1.48%

 















MVT

 

 

A

 

 

0.37%

 

 

0.46%

 

 

0.41%

 

 

 

 

B

 

 

0.38%

 

 

0.50%

 

 

0.42%

 

 

 

 

C

 

 

0.37%

 

 

0.50%

 

 

0.42%

 

 

 

 

D

 

 

1.43%

 

 

1.56%

 

 

1.48%

 
















 

 

 


68

ANNUAL REPORT

APRIL 30, 2011




 


Notes to Financial Statements (continued)

Since February 13, 2008, the AMPS of the Funds failed to clear any of their auctions. As a result, the AMPS dividend rates were reset to the maximum applicable rate, which ranged from 0.35% to 1.56% for the year ended April 30, 2011. A failed auction is not an event of default for the Funds but it has a negative impact on the liquidity of AMPS. 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’ AMPS may not occur for some time, if ever, and even if liquidity does resume, AMPS Shareholders may not have the ability to sell the AMPS 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 AMPS is less than 200%.

The Funds pay commissions of 0.15% on the aggregate principal amount of all shares that fail to clear their auctions and 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Certain broker dealers have individually agreed to reduce commissions for failed auctions.

AMPS issued and outstanding remained constant for the year ended April 30, 2011 for MEN, MHD, MUH, MUS and MVT.

During the year ended April 30, 2011, MUI announced the following redemptions of AMPS 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

 











MUI

 

 

M7

 

 

4/05/11

 

 

1,795

 

$

44,875,000

 

 

 

 

T7

 

 

4/06/11

 

 

2,423

 

$

60,575,000

 

 

 

 

W7

 

 

4/07/11

 

 

1,795

 

$

44,875,000

 

 

 

 

TH7

 

 

4/08/11

 

 

2,423

 

$

60,575,000

 

 

 

 

F7

 

 

4/04/11

 

 

1,795

 

$

44,875,000

 

 

 

 

TH28

 

 

4/08/11

 

 

1,256

 

$

31,400,000

 















MUI financed the AMPS redemptions with the proceeds received from the issuance of VRDP Shares of $287,100,000.

During the year ended April 30, 2010, MEN, MHD, MUH, MUS and MVT announced the following redemptions of AMPS 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

 















MEN, MHD, MUH, MUS and MVT financed the AMPS redemptions with cash received from TOB transactions.

VRDP Shares

On March 17, 2011, MUI issued 2,871 Series W-7 VRDP Shares, $100,000 liquidation value per share with a maturity date of April 1, 2041, in a privately negotiated offering. The VRDP Shares were offered to institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933 and include a liquidity feature that allows the VRDP shareholders to have their shares purchased by the liquidity provider in the event of a failed remarketing. MUI entered into a fee agreement with the liquidity provider that required an initial and per annum liquidity fee which is shown as liquidity fees in the Statements of Operations.

Dividends on the VRDP Shares are set weekly at a rate established by a remarketing agent. Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part, at any time at the option of MUI. MUI also may redeem the VRDP Shares if it fails to maintain a 200% asset coverage requirement and such failure is not cured timely. The redemption price per share is equal to the liquidation value per share. All of MUI’s VRDP Shares have successfully remarketed since issuance, with an annualized dividend rate of 0.51% for the period ended April 30, 2011. For financial reporting purposes, the liquidation value of VRDP Shares is recorded as a liability in the Statements of Assets and Liabilities. Unpaid dividends are included in interest payable in the Statements of Assets and Liabilities, and the dividends paid on the VRDP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. Dividends paid to holders of VRDP Shares are treated as tax-exempt income.

 

 

 




ANNUAL REPORT

APRIL 30, 2011

69




 


Notes to Financial Statements (concluded)

During the period, MEN entered into a Fee Agreement (the “Agreement”) with a financial institution in relation to the refinancing of AMPS. Pursuant to the terms of the Agreement, effective February 1, 2011, MEN paid a liquidity fee through the date of the refinancing at an annual rate of 0.50% of the refinancing amounts, which is shown as liquidity fees on the Statements of Operations.

The holders of Preferred Shares have voting rights equal to the Common Shareholders (one vote per share) and will vote together with Common Shareholders (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.

8. 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 June 1, 2011 to Common Shareholders of record on May 16, 2011 as follows:

 

 

 

 

 





 

 

Common Dividend
Per Share

 





MUA

 

 

$0.0625

 

MEN

 

 

$0.0570

 

MHD

 

 

$0.0905

 

MUH

 

 

$0.0815

 

MUS

 

 

$0.0740

 

MUI

 

 

$0.0715

 

MVT

 

 

$0.0885

 






The dividends declared on AMPS or VRDP Shares for the period May 1, 2011 to May 31, 2011 were as follows:

 

 

 

 

 

 

 

 







 

 

Series

 

Dividends
Declared

 







MEN

 

 

A

 

$

11,223

 

 

 

 

B

 

$

11,767

 

 

 

 

C

 

$

10,770

 

 

 

 

D

 

$

32,675

 









MHD

 

 

A

 

$

10,479

 

 

 

 

B

 

$

10,285

 

 

 

 

C

 

$

11,739

 









MUH

 

 

A

 

$

7,953

 

 

 

 

B

 

$

7,837

 









MUS

 

 

A

 

$

12,155

 

 

 

 

B

 

$

12,653

 









MUI

 

 

W-7

 

$

103,749

 









MVT

 

 

A

 

$

10,831

 

 

 

 

B

 

$

10,667

 

 

 

 

C

 

$

10,228

 

 

 

 

D

 

$

37,405

 









On May 12, 2011, MEN announced the following redemptions of AMPS 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

 

 

6/14/11

 

 

1,525

 

$

38,125,000

 

 

 

 

B

 

 

6/21/11

 

 

1,525

 

$

38,125,000

 

 

 

 

C

 

 

5/31/11

 

 

1,525

 

$

38,125,000

 

 

 

 

D

 

 

6/10/11

 

 

1,128

 

$

28,200,000

 















On May 17, 2011, MEN issued 1,425 Series W-7 VRDP Shares, $100,000 liquidation value per share with a maturity date of June 1, 2041 and total proceeds received of $142,500,000 in a private offering of VRDP Shares with qualified institutional buyers, as defined in Rule 144A under the Securities Act of 1933 to finance the AMPS redemption.

Each Fund will pay a net investment income dividend on July 1, 2011 to Common Shareholders of record on June 15, 2011 as follows:

 

 

 

 

 






 

 

Common Dividend
Per Share

 





MUA

 

 

$0.0625

 

MEN

 

 

$0.0570

 

MHD

 

 

$0.0905

 

MUH

 

 

$0.0815

 

MUS

 

 

$0.0740

 

MUI

 

 

$0.0715

 

MVT

 

 

$0.0885

 







 

 

 


70

ANNUAL REPORT

APRIL 30, 2011




 


Report of Independent Registered Public Accounting Firm

To the Shareholders and Boards of Directors of:
BlackRock MuniAssets Fund, Inc.
BlackRock MuniEnhanced Fund, Inc.
BlackRock MuniHoldings Fund, Inc.
BlackRock MuniHoldings Fund II, Inc.
BlackRock MuniHoldings Quality Fund, Inc.
BlackRock Muni Intermediate Duration Fund, Inc.
BlackRock MuniVest Fund II, Inc.

We have audited the accompanying statements of assets and liabilities of BlackRock MuniAssets Fund, Inc., BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc. (formerly BlackRock MuniHoldings Insured Fund, Inc.), BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc. (collectively, the “Funds”), including the schedules of investments, as of April 30, 2011, and the related statements of operations for the year then ended, the statements of cash flows of BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc., BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc. for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2011, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of BlackRock MuniAssets Fund, Inc., BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc., BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc., as of April 30, 2011, the results of their operations for the year then ended, the statements of cash flows of BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc., BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc. for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
June 24, 2011

 

 

 


ANNUAL REPORT

APRIL 30, 2011

71




 


Important Tax Information (Unaudited)

The following table summarizes the taxable per share distributions paid by MUA, MHD, MUH, MUI and MVT during the taxable year ended April 30, 2011:

 

 

 

 

 

 

 

 

 

 

 









MUA

 

Payable
Date

 

Ordinary
Income*

 

Long-Term
Capital
Gains

 









Common Shareholders

 

 

12/31/10

 

$

0.012276

 

 

 












MHD

 

 

 

 

 

 

 

 

 

 












Common Shareholders

 

 

12/31/10

 

$

0.039771

 

$

0.075505

 












Preferred Shareholders:

 

 

 

 

 

 

 

 

 

 

Series A

 

 

11/17/10

 

$

1.05

 

$

1.98

 

Series A

 

 

11/24/10

 

$

1.08

 

$

2.06

 

Series A

 

 

12/08/10

 

$

1.05

 

$

1.98

 

Series A

 

 

12/15/10

 

$

1.08

 

$

1.18

 

 

Series B

 

 

11/26/10

 

$

1.08

 

$

2.06

 

Series B

 

 

12/03/10

 

$

1.12

 

$

2.14

 

Series B

 

 

12/10/10

 

$

1.02

 

$

1.91

 

Series B

 

 

12/17/10

 

$

0.45

 

$

0.85

 

 

Series C

 

 

11/16/10

 

$

3.68

 

$

6.98

 

Series C

 

 

11/23/10

 

$

3.75

 

$

7.12

 

Series C

 

 

11/30/10

 

$

3.78

 

$

7.18

 

Series C

 

 

12/07/10

 

$

2.74

 

$

5.21

 












MUH

 

 

 

 

 

 

 

 

 

 












Common Shareholders

 

 

12/31/10

 

$

0.007774

 

$

0.066937

 












Preferred Shareholders:

 

 

 

 

 

 

 

 

 

 

Series A

 

 

12/08/10

 

$

0.31

 

$

2.72

 

Series A

 

 

12/15/10

 

$

0.32

 

$

2.71

 

Series A

 

 

12/22/10

 

$

0.21

 

$

1.76

 

 

Series B

 

 

11/29/10

 

$

0.32

 

$

2.82

 

Series B

 

 

12/06/10

 

$

0.34

 

$

2.92

 

Series B

 

 

12/20/10

 

$

0.17

 

$

1.38

 












 

 

 

 

 

 

 

 

MUI

 

 

 

 

 

 

 









Common Shareholders

 

 

12/31/10

 

$

0.000335

 









Preferred Shareholders:

 

 

 

 

 

 

 

Series M7

 

 

11/30/10

 

$

0.16

 

Series T7

 

 

11/24/10

 

$

0.16

 

Series W7

 

 

11/26/10

 

$

0.16

 

Series TH7

 

 

11/26/10

 

$

0.16

 

Series F7

 

 

11/29/10

 

$

0.16

 

Series TH28

 

 

12/17/10

 

$

0.16

 









MVT

 

 

 

 

 

 

 









Common Shareholders

 

 

12/31/10

 

$

0.000737

 









Preferred Shareholders:

 

 

 

 

 

 

 

Series A

 

 

12/16/10

 

$

0.08

 

Series B

 

 

12/23/10

 

$

0.08

 

Series C

 

 

11/26/10

 

$

0.08

 

Series D

 

 

11/30/10

 

$

0.27

 










 

 

*

Additionally, all ordinary income distributions are comprised of interest related dividends and qualified short-term capital gains for non-US residents and are eligible for exemption from US withholding tax for nonresident aliens and foreign corporations.

All other net investment income distributions paid by MUA, MEN, MHD, MUH, MUS, MUI and MVT during the taxable year ended April 30, 2011 qualify as tax-exempt interest dividends for federal income tax purposes.

 

 

 




72

ANNUAL REPORT

APRIL 30, 2011




 


Automatic Dividend Reinvestment Plans

Pursuant to each Fund’s Dividend Reinvestment Plan (the “Reinvestment Plan”), Common Shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by BNY Mellon Shareowner Services for MUA, MHD, MUH, MUS and MVT and Computershare Trust Company, N.A. for MEN and MUI (individually, the “Reinvestment Plan Agent” or together, the “Reinvestment Plan Agents”) in the respective Fund’s shares pursuant to the Reinvestment Plan. Shareholders who do not participate in the Reinvestment Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Reinvestment Plan Agent, which serves as agent for the shareholders in administering the Reinvestment Plan.

After the Funds declare a dividend or determine to make a capital gain distribution, the Reinvestment Plan Agent will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Fund (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market, on the Fund’s primary exchange (“open-market purchases”). If, on the dividend payment date, the NAV per share is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market premium”), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV per share is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV per share is greater than the market value per share plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Reinvestment Plan Agents are unable to invest the full dividend amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Reinvestment Plan Agents will invest any un-invested portion in newly issued shares.

Participation in the Reinvestment Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Reinvestment Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Fund. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Reinvestment Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable on such dividends or distributions.

Each Fund reserves the right to amend or terminate the Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan; however, each Fund reserves the right to amend the Reinvestment Plan to include a service charge payable by the participants. Participants that request a sale of shares through Computershare Trust Company, N.A. are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. Participants that request a sale of shares through BNY Mellon Shareowner Services are subject to a $0.02 per share sold brokerage commission. All correspondence concerning the Reinvestment Plan should be directed to the respective Reinvestment Plan Agent: BNY Mellon Shareowner Services, P.0. Box 358035, Pittsburgh, PA 15252-8035, Telephone: (866) 216-0242 for shareholders of MUA, MHD, MUH, MUS and MVT or Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078, Telephone: (800) 699-1BFM or overnight correspondence should be directed to the Reinvestment Plan Agent at 250 Royall Street, Canton, MA 02021 for shareholders of MEN and MUI.

 

 

 


ANNUAL REPORT

APRIL 30, 2011

73




 


 

Officers and Directors


 

 

 

 

 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Funds

 

Length
of Time
Served as
a Director2

 

Principal Occupation(s) During Past Five Years

 

Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen

 

Public
Directorships


Independent Directors1


Richard E. Cavanagh
55 East 52nd Street
New York, NY 10055
1946

 

Chair of the Board and Director

 

Since 2007

 

Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life Insurance Company of America since 1998; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Adjunct Lecturer, Harvard University since 2007; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007.

 

95 RICs consisting of 95 Portfolios

 

Arch Chemical (chemical and allied products)


Karen P. Robards
55 East 52nd Street
New York, NY 10055
1950

 

Vice Chair of the Board, Chair of the Audit Committee and Director

 

Since 2007

 

Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Care Investment Trust, Inc. (health care real estate investment trust) from 2007 to 2010; Director of Enable Medical Corp. from 1996 to 2005; Investment banker at Morgan Stanley from 1976 to 1987.

 

95 RICs consisting of 95 Portfolios

 

AtriCure, Inc. (medical devices)


Michael Castellano
55 East 52nd Street
New York, NY 10055
1946

 

Director and Member of the Audit Committee

 

Since 2011

 

Managing Director and Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religions (non-profit) since 2009; Director, National Advisory Board of Church Management at Villanova University since 2010.

 

95 RICs consisting of 95 Portfolios

 

None


Frank J. Fabozzi
55 East 52nd Street
New York, NY 10055
1948

 

Director and Member of the Audit Committee

 

Since 2007

 

Consultant/Editor of The Journal of Portfolio Management since 2006; Professor in the Practice of Finance and Becton Fellow, Yale University, School of Management, since 2006; Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006.

 

95 RICs consisting of 95 Portfolios

 

None


Kathleen F. Feldstein
55 East 52nd Street
New York, NY 10055
1941

 

Director

 

Since 2007

 

President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003; Director, Catholic Charities of Boston since 2009.

 

95 RICs consisting of 95 Portfolios

 

The McClatchy Company (publishing); Bell South (telecommunications); Knight Ridder (publishing)


James T. Flynn
55 East 52nd Street
New York, NY 10055
1939

 

Director and Member of the Audit Committee

 

Since 2007

 

Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.

 

95 RICs consisting of 95 Portfolios

 

None


Jerrold B. Harris
55 East 52nd Street
New York, NY 10055
1942

 

Director

 

Since 2007

 

Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000. Director of Delta Waterfowl Foundation since 2001; President and Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999.

 

95 RICs consisting of 95 Portfolios

 

BlackRock Kelso Capital Corp. (business development company)


 


 

 

 




74

ANNUAL REPORT

APRIL 30, 2011




 


 

Officers and Directors (continued)


 

 

 

 

 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Funds

 

Length
of Time
Served as
a Director2

 

Principal Occupation(s) During Past Five Years

 

Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen

 

Public
Directorships


Independent Directors1 (concluded)


R. Glenn Hubbard
55 East 52nd Street
New York, NY 10055
1958

 

Director

 

Since 2007

 

Dean, Columbia Business School since 2004; Columbia faculty member since 1988; Co-Director of Columbia Business School’s Entrepreneurship Program from 1997 to 2004; Chairman, U.S. Council of Economic Advisers under the President of the United States from 2001 to 2003; Chairman, Economic Policy Committee of the OECD from 2001 to 2003.

 

95 RICs consisting of 95 Portfolios

 

ADP (data and information services); KKR Financial Corporation (finance); Metropolitan Life Insurance Company (insurance)


W. Carl Kester
55 East 52nd Street
New York, NY 10055
1951

 

Director and Member of the Audit Committee

 

Since 2007

 

George Fisher Baker Jr. Professor of Business Administration, Harvard Business School; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Department, Harvard Business School from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program of Harvard Business School from 1999 to 2005; Member of the faculty of Harvard Business School since 1981.

 

95 RICs consisting of 95 Portfolios

 

None


 

 

 

 


 

1

Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

 

 

 

 

2

Date shown is the earliest date a person has served for the Funds covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows certain Directors as joining the Funds’ board in 2007, each Director first became a member of the Board of Directors of other legacy MLIM or legacy BlackRock Funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998.


 

 

 

 

 

 

 

 

 

 

 


Interested Directors3


Richard S. Davis
55 East 52nd Street
New York, NY 10055
1945

 

Director

 

Since 2007

 

Managing Director, BlackRock, Inc. since 2005; Formerly Chief Executive Officer, State Street Research & Management Company from 2000 to 2005; Chairman of the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005.

 

165 RICs consisting of 290 Portfolios

 

None


Henry Gabbay
55 East 52nd Street
New York, NY 10055
1947

 

Director

 

Since 2007

 

Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end Funds in the BlackRock fund complex from 1989 to 2006.

 

165 RICs consisting of 290 Portfolios.

 

None


 

 

 

 


 

3

Mr. Davis is an “interested person,” as defined in the 1940 Act, of the Funds based on his position with BlackRock, Inc. and its affiliates. Mr. Gabbay is an “interested person” of the Funds based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership of BlackRock, Inc. and The PNC Financial Services Group, Inc. securities. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.


 

 

 


ANNUAL REPORT

APRIL 30, 2011

75




 


 

Officers and Directors (continued)


 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Funds

 

Length
of Time
Served

 

Principal Occupation(s) During Past Five Years


Funds Officers1

 

 

 

 

 

 


John M. Perlowski
55 East 52nd Street
New York, NY 10055
1964

 

President and Chief Executive Officer

 

Since 2011

 

Managing Director of BlackRock, Inc. since 2009; Global Head of BlackRock Fund Administration since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director, Family Resource Network (charitable foundation) since 2009.


Anne Ackerley
55 East 52nd Street
New York, NY 10055
1962

 

Vice President

 

Since 20072

 

Managing Director of BlackRock, Inc. since 2000; President and Chief Executive Officer of the BlackRock-advised funds from 2009 to 2011; Vice President of the BlackRock-advised funds from 2007 to 2009; Chief Operating Officer of BlackRock’s Global Client Group since 2009; Chief Operating Officer of BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006.


Brendan Kyne
55 East 52nd Street
New York, NY 10055
1977

 

Vice President

 

Since 2009

 

Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009, Co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008.


Neal Andrews
55 East 52nd Street
New York, NY 10055
1966

 

Chief Financial Officer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.


Jay Fife
55 East 52nd Street
New York, NY 10055
1970

 

Treasurer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P.-advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.


Brian Kindelan
55 East 52nd Street
New York, NY 10055
1959

 

Chief Compliance Officer

 

Since 2007

 

Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005.


Ira P. Shapiro
55 East 52nd Street
New York, NY 10055
1963

 

Secretary

 

Since 2010

 

Managing Director of BlackRock, Inc. since 2009; Managing Director and Associate General Counsel of Barclays Global Investors from 2008 to 2009 and Principal thereof from 2004 to 2008.


 

 

 

 


 

1

Officers of the Funds serve at the pleasure of the Board of Directors.

 

 

2

Ms. Ackerley was President and Chief Executive Officer from 2009 to 2011.



 

 

 

   

Effective November 10, 2010, Ira P. Shapiro became Secretary of the Funds.

Effective February 11, 2011, John M. Perlowski became President and Chief Executive Officer of the Funds.

Effective April 14, 2011, Michael Castellano became a Director of the Funds and a Member of the Audit Committee.

   

 

 

 


 

 

 




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ANNUAL REPORT

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Officers and Directors (concluded)

 

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

 

Sub-Advisor

BlackRock Investment

Management, LLC

Plainsboro, NJ 08536

 

Custodians

The Bank of New York Mellon3

New York, NY 10286

 

State Street Bank and

Trust Company4

Boston, MA 02101

 

Transfer Agent
Common Shares:

BNY Mellon Shareowner Services3

Jersey City, NJ 07310

 

Computershare Trust Company, N.A.4

Providence, RI 02940

 

Auction Agent
AMPS or VRDP 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


 

 

3

For MUA, MHD, MUH, MUS and MVT.

 

 

4

For MEN and MUI.


 

 

 


ANNUAL REPORT

APRIL 30, 2011

77




 


 

Additional Information

 


Proxy Results


At a special meeting of all shareholders of MUA held on December 17, 2010, the results were as follows:

 

 

 

 

 

 

 

 









 

 

 

For

 

Against

 

Abstain









1.

To approve the issuance of additional shares of common stock of MUA in connection with an Agreement and Plan of Reorganization among MUA, BlackRock Apex Municipal Fund, Inc. and MUA Merger Subsidiary, LLC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With respect to Proposal 1, the shares of MUA were voted as follows:

 

9,753,505

 

1,025,327

 

456,590









2.

To approve the proposal to remove MUA’s fundamental investment restriction restricting BlackRock MuniAssets Fund, Inc. from issuing senior securities or borrowing amounts in excess of 5% of its total assets taken at market value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With respect to Proposal 2, the shares of MUA were voted as follows:

 

9,495,627

 

1,257,020

 

482,775










 


Fund Certification


The Funds are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. Each Fund filed with the SEC the certification of their chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

 


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.

 

 

 




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ANNUAL REPORT

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Additional Information (continued)

 


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 AMPS, 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.

The Funds do not make available copies of their Statements of Additional Information because the Funds’ shares are not continuously offered, which means that the Statement of Additional Information of each Fund has not been updated after completion of the respective Fund’s offerings and the information contained in each Fund’s Statement of Additional Information may have become outdated.

Other than the revisions discussed in the Board approvals on page 80, there were no material changes in the Funds’ investment objectives or policies or to the Funds’ charters or by-laws that were not approved by the shareholders or in the principal risk factors associated with investment in the Funds. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolio.

Quarterly performance, semi-annual and annual reports and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s web-site is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website into this report.

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 Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the 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, D.C. Information on how to access documents on the SEC’s website without charge 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.

 

 

 


ANNUAL REPORT

APRIL 30, 2011

79




 


Additional Information (continued)

 


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 are not 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.

The Manager has been gradually repositioning each Fund’s portfolio over time, and during such period, each Fund may continue to hold a substantial portion of its assets in insured municipal bonds. At this time, the repositioning of each Fund’s portfolio is still taking place, and the Funds will 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. MUS will continue to trade on the New York Stock Exchange under its current ticker symbol.

The approved changes will not alter the Funds’ investment objective.

 

 

 




80

ANNUAL REPORT

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Additional Information (continued)

 


Section 19(a) Notices


The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Each Fund will send you a Form 1099-DIV each calendar year that will tell you how to report these distributions for federal income tax purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 







 

 

Total Fiscal Year-to-Date
Cumulative Distributions by Character

 

% of Fiscal Year-to-Date
Cumulative Distributions by Character

 

 

 


 



April 30, 2011

 

Net
Investment
Income

 

Net
Realized
Capital
Gains

 

Return
of
Capital

 

Total Per
Common
Share

 

Net
Investment
Income

 

Net
Realized
Capital
Gains

 

Return
of
Capital

 

Total Per
Common
Share

 



















MUA*

 

$

0.754634

 

 

 

$

0.007642

 

$

0.762276

 

 

99

%

 

0

%

 

1

%

 

100

%

MHD

 

$

1.070916

 

$

0.107859

 

 

 

$

1.178775

 

 

91

%

 

9

%

 

0

%

 

100

%

MUH

 

$

0.970662

 

$

0.072049

 

 

 

$

1.042711

 

 

93

%

 

7

%

 

0

%

 

100

%




























 

 

*

The Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in a Fund is returned to the shareholder. A return of capital does not necessarily reflect a Fund’s investment performance and should not be confused with “yield” or “income.”


 

 

 


ANNUAL REPORT

APRIL 30, 2011

81




 


Additional Information (concluded)

 


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.

 

 

 




82

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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 AMPS, 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)

(BLACKROCK LOGO)

#CEMUNI7-4/11


Item 2 –

Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer, or controller, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.

 

 

Item 3 –

Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

 

 

 

Frank J. Fabozzi

 

James T. Flynn

 

W. Carl Kester

 

Karen P. Robards

 

 

 

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

 

 

 

Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements.

 

 

 

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

 

 

 

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

 


Item 4 –

Principal Accountant Fees and Services

 

 

 

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

 

 

(a) Audit Fees

(b) Audit-Related Fees1

(c) Tax Fees2

(d) All Other Fees3

Entity Name

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

 

 

 

 

 

 

 

 

 

BlackRock MuniHoldings Fund, Inc.

$35,300

$34,300

$3,500

$3,500

$12,100

$6,100

$0

$0

 

          

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment Adviser”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Fund Service Providers”):

 

 

Current Fiscal Year End

Previous Fiscal Year End

(b) Audit-Related Fees1

$0

$0

(c) Tax Fees2

$0

$0

(d) All Other Fees3

$3,030,000

$2,950,000

 

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The nature of the services include tax compliance, tax advice and tax planning.

3 The nature of the services include a review of compliance procedures and attestation thereto.

 

   

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

 

 

 

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Fund Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

 


     

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

 

 

 

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

 

 

(f) Not Applicable

 

 

 

(g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Fund Service Providers were:

 

Entity Name

Current Fiscal Year End

Previous Fiscal Year End

 

 

 

BlackRock MuniHoldings Fund, Inc.

$15,600

$20,377

 

 

Additionally, SAS No. 70 fees for the current and previous fiscal years of $3,030,000 and $2,950,000, respectively, were billed by D&T to the Investment Adviser.

 

 

 

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant’s investment adviser), and the Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

 

Item 5 –

Audit Committee of Listed Registrants

 

    

(a)

The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

 

 

 

 

 

Michael Castellano

 

 

Frank J. Fabozzi

 

 

James T. Flynn

 

 

W. Carl Kester

 

 

Karen P. Robards

 

 

 

 

(b)

Not Applicable

 


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 – The board of directors has delegated the voting of proxies for the Fund’s portfolio securities to the Investment Adviser pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at http://www.sec.gov.

 

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies – as of April 30, 2011.

 

    

(a)(1)

The registrant is managed by a team of investment professionals comprised of Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock, Inc. (“BlackRock”) and Walter O’Connor, Managing Director at BlackRock. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and/or selection of its investments. Messrs. Jaeckel and O’Connor have been members of the registrant’s portfolio management team since 2006 and 2006, respectively.

 

Portfolio Manager

Biography

Theodore R. Jaeckel, Jr.

Managing Director at BlackRock since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2005 to 2006; Director of MLIM from 1997 to 2005.

Walter O’Connor

Managing Director of BlackRock since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.

 


 

(a)(2)

As of April 30, 2011:

 

 

(ii) Number of Other Accounts Managed

and Assets by Account Type

(iii) Number of Other Accounts and

Assets for Which Advisory Fee is

Performance-Based

(i) Name of

Portfolio Manager

Other

Registered

Investment

Companies

Other Pooled

Investment

Vehicles

Other

Accounts

Other

Registered

Investment

Companies

Other Pooled

Investment

Vehicles

Other

Accounts

Theodore R. Jaeckel, Jr.

68

0

0

0

0

0

 

$19.45 Billion

$0

$0

$0

$0

$0

Walter O’Connor

68

0

0

0

0

0

 

$19.45 Billion

$0

$0

$0

$0

$0

 

 

(iv)

Potential Material Conflicts of Interest

 

    

BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund.  In addition, BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund.  BlackRock, or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities.  Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information.  Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund.  It should also be noted that portfolio managers may manage certain accounts that are subject to performance fees.  In addition, portfolio managers may assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred.  Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees.

 


    

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly.  When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties.  BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment.  To this end, BlackRock has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.

 

 

(a)(3)

As of April 30, 2011:

 

     

Portfolio Manager Compensation Overview

 

 

 

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.

 

 

 

Base compensation. Generally, portfolio managers receive base compensation based on their position with the firm.

 

 

 

Discretionary Incentive Compensation

 

 

 

Discretionary incentive compensation is a function of several components: the performance of BlackRock, the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock.  In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured.  BlackRock’s Chief Investment Officers determine the benchmarks against which the performance of funds and other accounts managed by each portfolio manager is compared and the period of time over which performance is evaluated.  With respect to the portfolio managers, such benchmarks include a combination of market-based indices (e.g., Barclays Capital Municipal Bond Index), certain customized indices and certain fund industry peer groups.

 

 

 

Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on the performance of the Funds and other accounts managed by each portfolio manager relative to the various benchmarks. 

 

 

 

Performance of fixed income funds is measured on both a pre-tax and after-tax basis over various time periods including 1-, 3-, 5- and 10-year periods, as applicable. With respect to the performance of the other listed Index and Multi-Asset Funds, performance is measured on, among other things, a pre-tax basis over various time periods including 1-, 3- and 5-year periods, as applicable.

 


    

Distribution of Discretionary Incentive Compensation

 

 

 

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock restricted stock units which vest ratably over a number of years. For some portfolio managers, discretionary incentive compensation is also distributed in deferred cash awards that notionally track the returns of select BlackRock investment products they manage and that vest ratably over a number of years. The BlackRock restricted stock units, upon vesting, will be settled in BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. Providing a portion of annual bonuses in deferred cash awards that notionally track the BlackRock investment products they manage provides direct alignment with investment product results.

 

 

 

Long-Term Incentive Plan Awards — From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align their interests with long-term shareholder interests and motivate performance.  Equity awards are generally granted in the form of BlackRock restricted stock units that, once vested, settle in BlackRock common stock. Messrs. Jaeckel and O’Connor have each received long-term incentive awards.

 

 

 

Deferred Compensation Program — A portion of the compensation paid to eligible BlackRock employees may be voluntarily deferred into an account that tracks the performance of certain of the firm’s investment products. Each participant in the deferred compensation program is permitted to allocate his deferred amounts among various BlackRock investment options. All of the portfolio managers have participated in the deferred compensation program.

 

 

 

Other compensation benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

 

 

 

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation.  The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into an index target date fund that corresponds to, or is closest to, the year in which the participant attains age 65.  The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.  Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000.  Each portfolio manager is eligible to participate in these plans.

 


 

(a)(4)

Beneficial Ownership of Securities – As of April 30, 2011.

 

Portfolio Manager

Dollar Range of Equity Securities of the Fund
Beneficially Owned

Theodore R. Jaeckel, Jr.

$1-$10,000

Walter O’Connor

None

 

 

(b) Not Applicable

 

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.

 

 

Item 10 –

Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

 

 

Item 11 –

Controls and Procedures

 

 

 

(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.

 

 

 

(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

 

 

 

(a)(1) – Code of Ethics – See Item 2

 

 

 

(a)(2) – Certifications – Attached hereto

 

 

 

(a)(3) – Not Applicable

 

 

 

(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/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Fund, Inc.
   
  Date: July 5, 2011
   
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Fund, Inc.
   
  Date: July 5, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniHoldings Fund, Inc.
     
  Date: July 5, 2011