BLACKROCK MUNIASSETS FUND, INC

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: 811-07642

Name of Fund:  BlackRock MuniAssets Fund, Inc. (MUA)

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniAssets 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: 04/30/2018

Date of reporting period: 10/31/2017


Item 1 – Report to Stockholders


OCTOBER 31, 2017

 

SEMI-ANNUAL REPORT (UNAUDITED)

  LOGO

 

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 • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

In the 12 months ended October 31, 2017, risk assets, such as stocks and high-yield bonds, continued to deliver strong performance. These markets showed great resilience during a period with big political surprises, including the aftermath of the U.K.’s vote to leave the European Union and the outcome of the U.S. presidential election, which brought only brief spikes in equity market volatility. In contrast, closely watched elections in France, the Netherlands, and Australia countered the isolationist and nationalist political developments in the U.K. and the United States.

Interest rates rose, which worked against high-quality assets with more interest rate sensitivity. Consequently, longer-term U.S. Treasuries posted negative returns, as rising energy prices, modest wage increases, and steady job growth led to expectations of higher inflation and further interest rate increases by the U.S. Federal Reserve (the “Fed”).

The market’s performance reflected reflationary expectations early in the reporting period, as investors began to sense that a global recovery was afoot. Thereafter, many countries throughout the world experienced sustained and synchronized growth for the first time since the financial crisis. Growth rates and inflation are still relatively low, but they are finally rising together.

The Fed responded to these positive developments by increasing short-term interest rates three times and setting expectations for additional interest rate increases. The Fed also began reducing the vast balance sheet reserves that had accumulated in the wake of the financial crisis. In October 2017, the Fed reduced its $4.5 trillion balance sheet by only $10 billion, while setting expectations for additional modest reductions and rate hikes in 2018.

By contrast, the European Central Bank (“ECB”) and the Bank of Japan (“BoJ”) both continued to expand their balance sheets despite nascent signs of sustained economic growth. The Eurozone and Japan are both approaching the limits of central banks’ ownership share of debt issued by their respective governments, which is a structural pressure point that limits their capacity to deliver additional monetary stimulus. In October 2017, the ECB announced plans to cut the amount of its bond purchases in half for 2018, while the BoJ reiterated its commitment to economic stimulus until the inflation rate rises to its target of 2.0%.

Emerging market growth also stabilized, as accelerating growth in China, the second largest economy in the world and the most influential of all developing economies, improved the outlook for corporate profits and economic growth across most developing nations. Chinese demand for commodities and other raw materials allayed concerns about the country’s banking system, leading to rising equity prices and foreign investment flows.

While escalating tensions between the United States and North Korea and our nation’s divided politics are significant concerns, benign credit conditions, modest inflation, solid corporate earnings, and the positive outlook for growth in the world’s largest economies have kept markets relatively tranquil.

High valuations across most assets have laid the groundwork for muted returns going forward. At current valuation levels, potential equity gains will likely be closely tied to the pace of earnings growth, which has remained solid thus far in 2017, particularly in emerging markets. In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of October 31, 2017
     6-month   12-month

U.S. large cap equities
(S&P 500® Index)

  9.10%   23.63%

U.S. small cap equities
(Russell 2000® Index)

  8.01   27.85

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

  10.74   23.44

Emerging market equities
(MSCI Emerging Markets Index)

  16.14   26.45

3-month Treasury bills
(BofA Merrill Lynch 3-Month
U.S. Treasury Bill Index)

  0.49   0.72

U.S. Treasury securities
(BofA Merrill Lynch
10-Year U.S. Treasury
Index)

  0.15   (2.98)

U.S. investment grade bonds
(Bloomberg Barclays U.S.
Aggregate Bond Index)

  1.58   0.90

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

  2.22   1.80

U.S. high yield bonds
(Bloomberg Barclays U.S. Corporate High Yield 2% Issuer
Capped Index)

  3.44   8.92
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT


Table of Contents

 

      Page  

The Markets in Review

     2  

Semi-Annual Report:

  

Municipal Market Overview

     4  

The Benefits and Risks of Leveraging

     5  

Derivative Financial Instruments

     5  

Fund Summaries

     6  

Financial Statements:

  

Schedules of Investments

     20  

Statements of Assets and Liabilities

     69  

Statements of Operations

     71  

Statements of Changes in Net Assets

     73  

Statements of Cash Flows

     77  

Financial Highlights

     79  

Notes to Financial Statements

     86  

Disclosure of Investment Advisory Agreements

     95  

Director and Officer Information

     99  

Additional Information

     100  

Glossary of Terms Used in this Report

     103  

 

 

     3  


Municipal Market Overview  For the Reporting Period Ended October 31, 2017

 

Municipal Market Conditions

Municipal bonds experienced modestly positive performance for the period as a result of rising interest rates spurring from generally stronger economic data, signs of inflation pressures, Fed monetary policy normalization, and market expectations for pro-growth fiscal policy. However, ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in continued demand for fixed income investments. More specifically, investors favored the income, attractive relative yield, and stability of municipal bonds amid bouts of interest rate volatility (bond prices rise as rates fall) resulting from geopolitical tensions, the contentious U.S. election, and evolving global central bank policies. During the 12 months ended October 31, 2017, municipal bond funds experienced net outflows of approximately $3 billion (based on data from the Investment Company Institute). The asset class came under pressure post the November U.S. election as a result of uncertainty surrounding potential tax-reform, though expectation that tax reform was likely to be delayed or watered down quickly eased investor concerns.

 

For the same 12-month period, total new issuance remained healthy from a historical perspective at $376 billion (though well below the robust $441 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 51%) as issuers continued to take advantage of low interest rates and a flat yield curve to reduce their borrowing costs.   S&P Municipal Bond Index
  Total Returns as of October 31, 2017
    6 months:   2.22%
  12 months:   1.80%

 

A Closer Look at Yields

 

 

LOGO

From October 31, 2016 to October 31, 2017, yields on AAA-rated 30-year municipal bonds increased by 27 basis points (“bps”) from 2.56% to 2.83%, while 10-year rates rose by 28 bps from 1.73% to 2.01% and 5-year rates increased 29 bps from 1.13% to 1.42% (as measured by Thomson Municipal Market Data). The municipal yield curve steepened modestly over the 12-month period with the spread between 2- and 30-year maturities steepening by just 2 bps.

During the same time period, on a relative basis, tax-exempt municipal bonds strongly outperformed U.S. Treasuries with the greatest outperformance experienced in the front and intermediate portions of the yield curve. The relative positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities became increasingly scarce. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

The majority of municipal credits remain strong, despite well-publicized distress among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — have exhibited markedly improved credit fundamentals during the slow national recovery. However, several states with the largest unfunded pension liabilities have seen their bond prices decline noticeably and remain vulnerable to additional price deterioration. On the local level, Chicago’s credit quality downgrade is an outlier relative to other cities due to its larger pension liability and inadequate funding remedies. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of October 31, 2017, and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (“AMT”). Capital gains distributions, if any, are taxable.

The Standard & Poor’s Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

 

4    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


The Benefits and Risks of Leveraging

 

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

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Funds (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Funds’ shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Fund’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Fund’s financing cost of leverage is significantly lower than the income earned on a Fund’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Funds’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds had not used leverage. Furthermore, the value of the Funds’ 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 value of the Funds’ obligations under their respective leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that the Funds’ intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Fund’s Common Shares than if the Fund were not leveraged. In addition, 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 the Fund to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of the Funds’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Funds’ investment adviser will be higher than if the Funds did not use leverage.

To obtain leverage, each Fund has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) and Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Fund is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Fund may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Fund segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Fund’s obligations under the TOB Trust (including accrued interest), then the TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements imposed by the 1940 Act.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other asset without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS      5  


Fund Summary  as of October 31, 2017    BlackRock MuniAssets Fund, Inc.

 

Investment Objective

BlackRock MuniAssets Fund, Inc.’s (MUA) (the “Fund”) investment objective is to provide high current income exempt from U.S. 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 to the issuer, is exempt from U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests at least 65% of its assets in municipal bonds that are rated in the medium to lower rating categories by nationally recognized rating services (for example, Baa or lower by Moody’s Investors Service, Inc. (“Moody’s”) or BBB or lower by Standard & Poor’s Corporation (“S&P”), or securities that are unrated but are deemed by the investment adviser to be of comparable 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.

Fund Information

 

Symbol on New York Stock Exchange (“NYSE”)

  MUA

Initial Offering Date

  June 25, 1993

Yield on Closing Market Price as of October 31, 2017 ($14.94)(a)

  4.62%

Tax Equivalent Yield(b)

  8.16%

Current Monthly Distribution per Common Share(c)

  $0.0575

Current Annualized Distribution per Common Share(c)

  $0.6900

Economic Leverage as of October 31, 2017(d)

  12%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.  
  (c)  The monthly distribution per Common Share, declared on December 1, 2017, was decreased to $0.0545 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.  
  (d)  Represents TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUA(a)(b)

    3.26%        3.01%  

Lipper Closed-End High Yield Municipal Debt Funds(c)

    3.73%        3.64%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Fund’s premium to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Fund’s positions in longer-dated securities made the largest contribution to performance, as bonds in the 20- to 40-year maturity range outpaced the broader market.

 

  Investments in lower-rated investment-grade, below investment-grade and non-rated securities benefited performance at a time of robust investor risk appetites. Credit spreads narrowed considerably amid strong fund flows and investors’ ongoing search for yield.

 

  At the sector level, the largest contributions came from health care, transportation and tobacco issues. The Fund gained an additional benefit from investments in development districts and single-site project financings.

 

  Investments in high-quality, pre-refunded securities in the one- to five-year range declined in value amid the upward pressure on short-term interest rates fostered by the ongoing normalization of monetary policy. These positions, which the Fund acquired in a higher-rate environment, were retained due to their above average income.

 

  The Fund’s modest exposure to general obligation bonds issued by Puerto Rico, which suffered large price declines in the wake of hurricane damage on the island, also detracted.

 

 

6    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniAssets Fund, Inc.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on 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.

Market Price and Net Asset Value Per Share Summary

 

     10/31/17     4/30/17      Change      High      Low  

Market Price

  $ 14.94     $ 14.82        0.81%      $ 15.84      $ 14.44  

Net Asset Value

  $ 14.15     $ 14.07        0.57%      $ 14.29      $ 14.05  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Health

    20     22

County/City/Special District/School District

    18       13  

Tobacco

    17       16  

Transportation

    17       19  

Education

    9       10  

Utilities

    8       8  

Corporate

    7       7  

State

    3       3  

Housing

    1       2  

 

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    14

2018

    8  

2019

    5  

2020

    13  

2021

    20  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AA/Aa

    20     19

A

    6       8  

BBB/Baa

    21       21  

BB/Ba

    9       9  

B/B

    12       11  

CCC/Caa

          1  

N/R(b)

    32       31  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (b)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 5%, respectively, of the Fund’s total investments.  
 

 

 

FUND SUMMARY      7  


Fund Summary  as of October 31, 2017    BlackRock MuniEnhanced Fund, Inc.

 

Investment Objective

BlackRock MuniEnhanced Fund, Inc.’s (MEN) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests primarily in long-term municipal bonds rated investment grade quality or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment and invests primarily in long-term municipal bonds with maturities of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on NYSE

  MEN

Initial Offering Date

  March 2, 1989

Yield on Closing Market Price as of October 31, 2017 ($11.75)(a)

  5.77%

Tax Equivalent Yield(b)

  10.19%

Current Monthly Distribution per Common Share(c)

  $0.0565

Current Annualized Distribution per Common Share(c)

  $0.6780

Economic Leverage as of October 31, 2017(d)

  38%

 

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.  
  (c)  The monthly distribution per Common Share, declared on December 1, 2017, was decreased to $0.048 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.  
  (d)  Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MEN(a)(b)

    3.40%        4.27%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  Portfolio income, enhanced by leverage, produced the largest positive contribution to performance in a period characterized by a mild decline in municipal bond yields. (Prices and yields move in opposite directions.)

 

  The Fund’s exposure to the long end of the yield curve aided results at a time of outperformance for longer-term bonds. Positions in lower-coupon bonds, including zero-coupon issues, contributed to performance due to their above-average interest rate sensitivity.

 

  The Fund’s position in New Jersey state-appropriated debt benefited from a meaningful tightening of yield spreads. At the sector level, transportation issues made a strong contribution to performance. Municipal bonds subject to the AMT, which outperformed in anticipation of possible tax law changes, also performed well.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on returns.

 

  Exposure to pre-refunded issues slightly hurt Fund results given the underperformance of short-term bonds.

 

  Reinvestment was a further detractor, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at materially lower prevailing rates.

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.

 

 

8    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniEnhanced Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      10/31/17      4/30/17      Change      High      Low  

Market Price

   $ 11.75      $ 11.69        0.51    $ 12.45      $ 11.61  

Net Asset Value

   $ 11.93      $ 11.77        1.36    $ 12.11      $ 11.75  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Transportation

    26     24

State

    17       15  

County/City/Special District/School District

    15       18  

Health

    15       12  

Utilities

    12       15  

Education

    9       11  

Corporate

    3       3  

Housing

    2       1  

Tobacco

    1       1  

 

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    3

2018

    9  

2019

    15  

2020

    3  

2021

    12  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    8     11

AA/Aa

    50       57  

A

    24       17  

BBB/Baa

    10       12  

BB/Ba

    2        

N/R(b)

    6       3  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (b)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.  
 

 

 

FUND SUMMARY      9  


Fund Summary  as of October 31, 2017    BlackRock MuniHoldings Fund, Inc.

 

Investment Objective

BlackRock MuniHoldings Fund, Inc.’s (MHD) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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.

Fund Information

 

Symbol on NYSE

  MHD

Initial Offering Date

  May 2, 1997

Yield on Closing Market Price as of October 31, 2017 ($16.59)(a)

  5.39%

Tax Equivalent Yield(b)

  9.52%

Current Monthly Distribution per Common Share(c)

  $0.0745

Current Annualized Distribution per Common Share(c)

  $0.8940

Economic Leverage as of October 31, 2017(d)

  38%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MHD(a)(b)

    2.48%        3.95%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Fund’s positions in longer-dated securities made the largest contribution to performance, as bonds in the 20- to 40-year maturity range outpaced the broader market.

 

  Investments in lower-rated securities within the investment-grade market benefited performance at a time of robust investor risk appetites. Credit spreads narrowed considerably amid strong fund flows and investors’ ongoing search for yield.

 

  At the sector level, the largest contributions came from state and local tax-backed, transportation and health care issues.

 

  Investments in high-quality, pre-refunded securities in the one- to five-year range declined in value amid the upward pressure on short-term interest rates fostered by the ongoing normalization of monetary policy. These positions, which the Fund acquired in a higher-rate environment, were retained due to their above average income.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on 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.

 

 

10    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniHoldings Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17     4/30/17      Change      High      Low  

Market Price

  $ 16.59     $ 16.65        (0.36)%      $ 18.25      $ 16.48  

Net Asset Value

  $ 17.03     $ 16.85        1.07%       $ 17.24      $ 16.82  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Transportation

    23     24

Health

    20       19  

County/City/Special District/School District

    16       12  

State

    12       12  

Utilities

    9       11  

Education

    8       11  

Corporate

    6       6  

Tobacco

    6       5  

Housing(a)

           

 

  (a)  Representing less than 1% of the Fund’s total investments.  
    For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.  

CALL/MATURITY SCHEDULE (d)

 

Calendar Year Ended December 31,

       

2017

    5

2018

    5  

2019

    24  

2020

    11  

2021

    12  

 

  (d)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (b)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    3     5

AA/Aa

    47       47  

A

    19       19  

BBB/Baa

    16       16  

BB/Ba

    4       4  

B

    3       2  

N/R(c)

    8       7  

 

  (b)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (c)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 1% of the Fund’s total investments.  
 

 

 

FUND SUMMARY      11  


Fund Summary  as of October 31, 2017    BlackRock MuniHoldings Fund II, Inc.

 

Investment Objective

BlackRock MuniHoldings Fund II, Inc.’s (MUH) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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.

Fund Information

 

Symbol on NYSE

  MUH

Initial Offering Date

  February 27, 1998

Yield on Closing Market Price as of October 31, 2017 ($14.93)(a)

  5.43%

Tax Equivalent Yield(b)

  9.59%

Current Monthly Distribution per Common Share(c)

  $0.0675

Current Annualized Distribution per Common Share(c)

  $0.8100

Economic Leverage as of October 31, 2017(d)

  37%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUH(a)(b)

    (1.50)%        3.72%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Fund moved from a premium to NAV to a discount during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Fund’s positions in longer-dated securities made the largest contribution to performance, as bonds in the 20- to 40-year maturity range outpaced the broader market.

 

  Investments in lower-rated securities within the investment-grade market benefited performance at a time of robust investor risk appetites. Credit spreads narrowed considerably amid strong fund flows and investors’ ongoing search for yield.

 

  At the sector level, the largest contributions came from state and local tax-backed, transportation and utilities issues.

 

  Investments in high-quality, pre-refunded securities in the one- to five-year range declined in value amid the upward pressure on short-term interest rates fostered by the ongoing normalization of monetary policy. These positions, which the Fund acquired in a higher-rate environment, were retained due to their above average income.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on 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.

 

 

12    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniHoldings Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17      4/30/17      Change      High      Low  

Market Price

  $ 14.93      $ 15.59        (4.23)%      $ 16.63      $ 14.91  

Net Asset Value

  $ 15.65      $ 15.52        0.84%       $ 15.85      $ 15.49  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Transportation

    22     23

Health

    19       19  

County/City/Special District/School District

    16       12  

State

    14       14  

Utilities

    9       11  

Education

    8       10  

Corporate

    6       6  

Tobacco

    5       4  

Housing

    1       1  

 

 

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    6

2018

    5  

2019

    26  

2020

    11  

2021

    12  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    4     6

AA/Aa

    49       50  

A

    18       18  

BBB/Baa

    15       15  

BB/Ba

    4       3  

B

    2       1  

N/R(b)

    8       7  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (b)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 1% of the Fund’s total investments.  
 

 

 

FUND SUMMARY      13  


Fund Summary  as of October 31, 2017    BlackRock MuniHoldings Quality Fund, Inc.

 

Investment Objective

BlackRock MuniHoldings Quality Fund, Inc.’s (MUS) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests at least 80% of its assets in investment grade municipal obligations, and obligations deemed to be of comparable quality by the investment adviser at the time of investment, 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.

Fund Information

 

Symbol on NYSE

  MUS

Initial Offering Date

  May 1, 1998

Yield on Closing Market Price as of October 31, 2017 ($13.34)(a)

  5.71%

Tax Equivalent Yield(b)

  10.09%

Current Monthly Distribution per Common Share(c)

  $0.0635

Current Annualized Distribution per Common Share(c)

  $0.7620

Economic Leverage as of October 31, 2017(d)

  39%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUS(a)(b)

    2.50%        2.88%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Fund posted a gain in the period, with positive performance coming from both income and rising bond prices.

 

  Geographically, positive returns were driven by exposure to Illinois and New Jersey bonds. Illinois passed its budget and moved closer to achieving fiscal balance and saw a stabilization of its credit rating. In New Jersey, legislation that redirected roughly $1 billion annually in lottery proceeds to the state’s pension funds helped stabilize its credit rating and contributed to positive returns for the New Jersey credits held in the Fund.

 

  Positions in the tax-backed (state), tax-backed (local) and transportation sectors were positive contributors to performance. Holdings in longer-term bonds also added value in the period.

 

  The Fund utilized a mix of U.S. Treasury futures contracts to help manage the risk of rising interest rates. This strategy was tactically adjusted throughout the period, resulting in a modestly positive contribution to performance.

 

  The Fund’s emphasis on higher-quality bonds was a headwind at a time of outperformance for issues rated below investment grade. Reinvestment was a further drag on results, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at materially lower prevailing rates.

 

  The Fund’s holdings in short-term, pre-refunded bonds, while producing positive returns, lagged somewhat due to the premium amortization that occurred as the bonds approached their call and maturity dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A premium occurs when the price of the bond has increased due to a decline in interest rates.)

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.

 

 

14    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniHoldings Quality Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17     4/30/17     Change     High     Low  

Market Price

    $13.34       $13.38       (0.30)%       $14.21       $13.34  

Net Asset Value

    $13.96       $13.95       0.07%        $14.17       $13.93  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Transportation

    35     38

County/City/Special District/School District

    24       25  

Utilities

    14       13  

Health

    10       11  

State

    6       5  

Education

    6       4  

Housing

    3       2  

Tobacco

    1       1  

Corporate

    1       1  

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

CALL/MATURITY SCHEDULE (b)

 

Calendar Year Ended December 31,

       

2017

    % (c) 

2018

    24  

2019

    12  

2020

    4  

2021

    18  

 

  (b)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  (c)  Representing less than 1% of the Fund’s total investments.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    5     6

AA/Aa

    50       56  

A

    34       29  

BBB/Baa

    8       7  

N/R

    3       2  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
 

 

 

FUND SUMMARY      15  


Fund Summary  as of October 31, 2017    BlackRock Muni Intermediate Duration Fund, Inc.

 

Investment Objective

BlackRock Muni Intermediate Duration Fund, Inc.’s (MUI) (the “Fund”) investment objective is to provide common shareholders with high current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests at least 75% of its assets in municipal bonds rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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 expects to maintain a dollar-weighted average portfolio duration, as calculated by the investment adviser, of three to ten years. 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.

Fund Information

 

Symbol on NYSE

  MUI

Initial Offering Date

  August 1, 2003

Yield on Closing Market Price as of October 31, 2017 ($14.02)(a)

  4.24%

Tax Equivalent Yield(b)

  7.49%

Current Monthly Distribution per Common Share(c)

  $0.0495

Current Annualized Distribution per Common Share(c)

  $0.5940

Economic Leverage as of October 31, 2017(d)

  38%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUI(a)(b)

    2.64%        4.43%  

Lipper Intermediate Municipal Debt Funds(c)

    1.06%        3.01%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  Concentrations in intermediate securities maturing in the 12- to 16-year range contributed to performance. The Fund’s use of leverage also boosted returns by enhancing income and amplifying the effect of rising bond prices.

 

  The Fund’s allocation to A and BBB rated investment-grade debt aided results, as lower-quality bonds outperformed. Positions in the transportation and tax-backed (state) sectors further helped performance, highlighted by the strong showing of New Jersey and Illinois issues.

 

  The Fund utilized a mix of U.S. Treasury futures contracts to help manage the risk of rising interest rates. This strategy was tactically adjusted throughout the period, resulting in a modestly positive contribution to performance.

 

  Positions in shorter-dated bonds, including high-quality pre-refunded securities, hurt results at a time in which shorter-term bonds lagged. The Fund’s more-seasoned holdings also detracted due to the premium amortization that occurred as the bonds approached their call and maturity dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A premium occurs when the price of the bond has increased due to a decline in interest rates.) Additionally, positions in higher-quality securities underperformed relative to lower-quality issues.

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.

 

 

16    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock Muni Intermediate Duration Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17      4/30/17      Change      High      Low  

Market Price

  $ 14.02      $ 13.96        0.43%      $ 14.41      $ 13.79  

Net Asset Value

  $ 15.50      $ 15.17        2.18%      $ 15.67      $ 15.14  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Transportation

    29     28

State

    16       12  

County/City/Special District/School District

    13       17  

Education

    13       14  

Health

    11       10  

Utilities

    10       11  

Corporate

    5       4  

Tobacco

    2       2  

Housing

    1       2  

 

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    2

2018

    4  

2019

    8  

2020

    8  

2021

    16  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    4     5

AA/Aa

    40       43  

A

    33       31  

BBB/Baa

    17       16  

BB/Ba

    1       1  

B

    1       1  

N/R(b)

    4       3  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (b)  The investment adviser evaluates the credit quality of unrated Investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 1%, respectively, of the Fund’s total investments.  
 

 

 

FUND SUMMARY      17  


Fund Summary  as of October 31, 2017    BlackRock MuniVest Fund II, Inc.

 

Investment Objective

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 U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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.

Fund Information

 

Symbol on NYSE

   MVT

Initial Offering Date

   March 29, 1993

Yield on Closing Market Price as of October 31, 2017 ($15.21)(a)

   5.76%

Tax Equivalent Yield(b)

   10.18%

Current Monthly Distribution per Common Share(c)

   $0.0730

Current Annualized Distribution per Common Share(c)

   $0.8760

Economic Leverage as of October 31, 2017(d)

   38%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MVT(a)(b)

    1.29%        3.36%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Fund moved from a premium to NAV to a discount during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Fund’s positions in longer-dated securities made the largest contribution to performance, as bonds in the 20- to 40-year maturity range outpaced the broader market.

 

  Investments in lower-rated securities within the investment-grade market benefited performance at a time of robust investor risk appetites. Credit spreads narrowed considerably amid strong fund flows and investors’ ongoing search for yield.

 

  At the sector level, the largest contributions came from state and local tax-backed, transportation and utilities issues.

 

  Investments in high-quality, pre-refunded securities in the one- to five-year range declined in value amid the upward pressure on short-term interest rates fostered by the ongoing normalization of monetary policy. These positions, which the Fund acquired in a higher-rate environment, were retained due to their above average income.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on 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.

 

 

18    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniVest Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17     4/30/17      Change      High      Low  

Market Price

  $ 15.21     $ 15.45        (1.55)%      $ 16.18      $ 15.10  

Net Asset Value

  $ 15.26     $ 15.19        0.46%       $ 15.46      $ 15.16  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector Allocation   10/31/17     4/30/17  

Transportation

    29     26

Health

    18       18  

County/City/Special District/School District

    14       12  

State

    12       14  

Utilities

    9       11  

Corporate

    6       6  

Tobacco

    6       5  

Education

    5       7  

Housing

    1       1  

 

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    6

2018

    11  

2019

    22  

2020

    12  

2021

    11  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    4     5

AA/Aa

    46       50  

A

    16       13  

BBB/Baa

    17       16  

BB/Ba

    4       4  

B

    3       2  

N/R(b)

    10       10  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (b)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017 the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 3%, respectively, of the Fund’s total investments.  
 

 

 

FUND SUMMARY      19  


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   
Alabama — 1.3%  

County of Jefferson Alabama Sewer, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42

  $ 3,745     $ 4,369,216  

State of Alabama Docks Department, Refunding RB,
6.00%, 10/01/20(a)

    2,165       2,455,002  
   

 

 

 
      6,824,218  
Alaska — 1.3%  

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A:

   

4.63%, 6/01/23

    875       899,990  

5.00%, 6/01/32

    1,500       1,465,050  

5.00%, 6/01/46

    4,540       4,332,749  
   

 

 

 
      6,697,789  
Arizona — 2.2%  

Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.13%, 7/01/37(b)

    960       1,010,342  

City of Phoenix Arizona IDA, RB:

   

Great Hearts Academies — Veritas Project,
6.40%, 7/01/21(a)

    425       500,960  

Great Hearts Academies — Veritas Projects,
6.30%, 7/01/21(a)

    500       587,585  

Legacy Traditional Schools Project, Series A,
6.50%, 7/01/34(b)

    570       646,893  

Legacy Traditional Schools Projects, Series A,
6.75%, 7/01/44(b)

    1,000       1,119,070  

City of Phoenix Arizona IDA, Refunding RB(b):

   

Basis Schools, Inc. Projects, 5.00%, 7/01/35

    305       318,393  

Basis Schools, Inc. Projects, 5.00%, 7/01/45

    855       881,838  

Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/35

    260       271,417  

Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/46

    290       298,915  

Legacy Traditional School Projects, 5.00%, 7/01/35

    320       326,304  

Legacy Traditional School Projects, 5.00%, 7/01/45

    255       253,875  

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

    1,650       2,010,162  

State of Arizona IDA, RB, Academies of Math & Science Project, Series B, 5.13%, 7/01/47(b)

    665       659,441  

State of Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.25%, 7/01/47(b)

    1,765       1,855,121  

University Medical Center Corp., RB, 6.50%, 7/01/19(a)

    500       543,080  
   

 

 

 
      11,283,396  
California — 7.9%  

California Municipal Finance Authority, RB, Urban Discovery Academy Project(b):

   

5.50%, 8/01/34

    315       324,264  

6.00%, 8/01/44

    665       680,834  

6.13%, 8/01/49

    580       592,934  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A:

   

5.00%, 2/01/36

    345       391,102  

5.00%, 2/01/37

    255       288,425  

California School Finance Authority, RB:

   

Alliance for College Ready Public School — 2023 Union LLC Project, Series A, 6.40%, 7/01/48

    1,570       1,789,879  

Value Schools, 6.65%, 7/01/33

    435       497,588  

Value Schools, 6.90%, 7/01/43

    975       1,086,452  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A(b):

   

5.00%, 12/01/46

    725       778,070  

5.25%, 12/01/56

    620       673,921  
Security   Par
(000)
    Value  
California (continued)  

California Statewide Communities Development Authority, Refunding RB:

   

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

  $ 2,175     $ 2,326,032  

California Baptist University, Series A, 5.00%, 11/01/32(b)

    630       700,151  

California Statewide Financing Authority, RB, Asset-Backed, Tobacco Settlement, Series B, 6.00%, 5/01/43

    1,650       1,650,297  

City & County of San Francisco California Redevelopment Agency, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Series D(b)(c):

   

0.00%, 8/01/26

    1,250       814,300  

0.00%, 8/01/43

    1,500       376,635  

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

   

6.50%, 5/01/36

    900       1,053,099  

6.50%, 5/01/42

    2,220       2,597,644  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40

    375       457,384  

County of Los Angeles California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.:

   

5.70%, 6/01/46

    3,600       3,612,492  

5.60%, 6/01/36

    1,285       1,309,351  

County of Riverside California Transportation Commission, RB, Senior Lien, Series A, 5.75%, 6/01/48

    2,885       3,230,017  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior Series A-1:

   

5.13%, 6/01/47

    4,455       4,381,626  

5.75%, 6/01/47

    3,745       3,744,888  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1:

   

4.75%, 6/01/25

    1,230       1,230,750  

5.00%, 6/01/37

    5,580       5,597,633  
   

 

 

 
      40,185,768  
Colorado — 1.3%  

Castle Oaks Metropolitan District No. 3, GO,
6.25%, 12/01/44

    500       531,685  

Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47

    575       589,962  

City & County of Denver Colorado, Refunding RB, United Airlines, Inc. Project, AMT, 5.00%, 10/01/32

    1,620       1,755,027  

Colorado Health Facilities Authority, Refunding RB, Sunny Vista Living Center Project, Series A(b):

   

6.13%, 12/01/45

    335       352,507  

6.25%, 12/01/50

    1,115       1,174,853  

Copperleaf Metropolitan District No. 2, GO, Refunding,
5.75%, 12/01/45

    720       759,161  

Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project, 6.00%, 1/15/34

    1,500       1,649,550  
   

 

 

 
      6,812,745  
Connecticut — 1.0%  

Mohegan Tribal Finance Authority, RB, 7.00%, 2/01/45(b)

    1,400       1,483,328  

Mohegan Tribe of Indians of Connecticut, RB, Series A,
6.75%, 2/01/45(b)

    1,271       1,366,570  

Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 2/01/30(b)

    1,835       1,951,321  
   

 

 

 
      4,801,219  
 

 

 

20    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Delaware — 0.9%  

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

  $ 1,000     $ 1,059,020  

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

    3,180       3,284,876  
   

 

 

 
      4,343,896  
Florida — 8.3%  

Boggy Creek Improvement District, Refunding RB, Special Assessment Bonds, 5.13%, 5/01/43

    1,500       1,515,375  

Capital Trust Agency, Inc., RB, Silver Creek St. Augustine Project, Series A(d):

   

1st Mortgage, 8.25%, 1/01/44

    515       420,863  

1st Mortgage, 8.25%, 1/01/49

    1,105       902,785  

5.75%, 1/01/50

    655       586,395  

County of Collier Florida IDA, Refunding RB, Arlington of Naples Project, Series A, 8.13%, 5/15/44(b)

    2,510       2,789,087  

County of Palm Beach Florida Health Facilities Authority, RB, Acts Retirement Life Community, 5.50%, 11/15/20(a)

    3,500       3,936,205  

County of Palm Beach Florida Health Facilities Authority, Refunding RB, Series A, 7.25%, 6/01/34

    500       603,335  

Florida Development Finance Corp., RB:

   

Renaissance Charter School, Series A, 5.75%, 6/15/29

    690       741,508  

Renaissance Charter School, Series A, 6.00%, 6/15/34

    835       889,684  

Renaissance Charter School, Series A, 6.13%, 6/15/44

    3,180       3,344,120  

Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 8/01/29(b)(e)

    1,550       1,587,339  

Greeneway Improvement District, RB, Special Assessment Bonds, 5.13%, 5/01/43

    1,855       1,878,466  

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

    380       381,376  

Lakewood Ranch Stewardship District Special Assessment Bonds, Village of Lakewood Ranch Sector Projects, 4.00%, 5/01/21

    150       152,033  

Lakewood Ranch Stewardship District Special Assessment Bonds, Refunding, Lakewood Center & New Sector Projects, 8.00%, 5/01/40

    1,485       1,752,508  

Lakewood Ranch Stewardship District Special Assessment Bonds, Village of Lakewood Ranch Sector Projects:

   

4.25%, 5/01/26

    150       153,368  

5.13%, 5/01/46

    880       913,449  

Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(a)

    4,550       5,538,851  

Midtown Miami Community Development District, Refunding, Special Assessment Bonds:

   

Series A, 5.00%, 5/01/37

    845       891,450  

Series B, 5.00%, 5/01/37

    495       522,210  

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

    4,052       2,917,743  

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

    295       296,516  

Tolomato Community Development District, Refunding, Special Assessment Bonds:

   

Convertible CAB, Series A2, 6.61%, 5/01/39

    250       249,978  

Convertible CAB, Series A3, 6.61%, 5/01/40(f)

    585       539,042  

Convertible CAB, Series A4, 6.61%, 5/01/40(f)

    305       235,951  

Series 2015-2, 6.61%, 5/01/40(f)

    805       532,821  

Series A1, 6.65%, 5/01/40

    865       865,199  

Tolomato Community Development District:

   

Series 1, 6.61%, 5/01/40(f)

    1,305       1,048,528  

Series 1, 6.65%, 5/01/40(d)(g)

    50       48,805  

Series 3, 6.61%, 5/01/40(d)(g)

    875       9  

Series 3, 6.65%, 5/01/40(d)(g)

    710       7  
Security   Par
(000)
    Value  
Florida (continued)  

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

   

6.75%, 5/01/31

  $ 1,525     $ 1,732,522  

7.00%, 5/01/41

    2,500       2,921,100  

5.50%, 5/01/42

    1,180       1,285,103  
   

 

 

 
      42,173,731  
Georgia — 1.6%  

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

    2,520       2,522,949  

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

    3,365       3,875,437  

County of Gainesville & Hall Georgia Development Authority, Refunding RB, Acts Retirement Life Community, Series A-2(a):

   

6.38%, 11/15/19

    700       773,094  

6.63%, 11/15/19

    880       976,298  
   

 

 

 
      8,147,778  
Guam — 0.3%  

Territory of Guam, GO, Series A:

   

6.00%, 11/15/19

    270       280,200  

7.00%, 11/15/19(a)

    1,115       1,243,727  
   

 

 

 
      1,523,927  
Illinois — 4.1%  

City of Chicago Illinois, GO, Refunding, Series A, 6.00%, 1/01/38

    1,260       1,442,309  

Illinois Finance Authority, Refunding RB:

   

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

    4,000       4,179,440  

Lutheran Home & Services Obligated Group, 5.63%, 5/15/42

    2,395       2,524,474  

Presence Health Network, Series C, 4.00%, 2/15/41

    1,500       1,520,850  

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

    890       888,478  

Rogers Park Montessori School Project, Series 2014, 6.00%, 2/01/34

    365       382,155  

Rogers Park Montessori School Project, Series 2014, 6.13%, 2/01/45

    860       886,178  

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

    2,000       2,125,560  

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.50%, 6/15/53

    2,370       2,603,943  

Railsplitter Tobacco Settlement Authority, RB:

   

5.50%, 6/01/23

    180       203,593  

6.00%, 6/01/28

    710       800,042  

State of Illinois, GO:

   

5.25%, 2/01/29

    1,000       1,085,690  

5.00%, 3/01/35

    740       765,249  

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

    1,661       1,664,405  
   

 

 

 
      21,072,366  
Indiana — 2.1%  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

   

6.75%, 1/01/34

    825       976,973  

7.00%, 1/01/44

    2,000       2,380,080  

City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village Project, 6.25%, 1/01/29(b)

    2,450       2,378,975  

County of Allen Indiana, RB, StoryPoint Fort Wayne Project, Series A-1(b):

   

6.63%, 1/15/34

    290       305,155  

6.75%, 1/15/43

    525       550,205  

6.88%, 1/15/52

    860       903,215  
 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Indiana (continued)  

Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges East End Crossing Project, Series A, AMT:

   

5.00%, 7/01/44

  $ 470     $ 505,917  

5.00%, 7/01/48

    1,555       1,668,873  

Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 1/15/51(b)

    1,190       1,238,136  
   

 

 

 
      10,907,529  
Iowa — 2.7%  

Iowa Finance Authority, Refunding RB:

   

Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.50%, 12/01/22

    2,090       2,140,139  

Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.25%, 12/01/25

    2,190       2,333,949  

Sunrise Retirement Community Project, 5.50%, 9/01/37

    1,355       1,377,263  

Sunrise Retirement Community Project, 5.75%, 9/01/43

    2,115       2,167,304  

Iowa Tobacco Settlement Authority, Refunding RB:

   

Asset-Backed, CAB, Series B, 5.60%, 6/01/34

    795       800,318  

Series C, 5.38%, 6/01/38

    4,900       4,899,559  
   

 

 

 
      13,718,532  
Kentucky — 0.9%  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing, First Tier, Series A, 5.75%, 7/01/49

    4,000       4,460,720  
   

 

 

 
Louisiana — 3.1%  

Juban Crossing Economic Development District, Refunding RB, General Infrastructure Project, Series C, 7.00%, 9/15/44(b)

    2,460       2,565,903  

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

    5,000       5,000,000  

Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.75%, 5/01/41

    1,745       1,885,979  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.25%, 5/15/35

    5,570       6,059,547  
   

 

 

 
      15,511,429  
Maine — 0.6%  

Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 7/01/41

    2,955       3,207,150  
   

 

 

 
Maryland — 2.6%  

City of Baltimore Maryland, Refunding RB, Convention Center Hotel, 5.00%, 9/01/33

    470       543,861  

County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 7/01/43

    2,840       3,083,246  

Maryland EDC, RB:

   

Purple Line Light Rail Project, AMT, 5.00%, 3/31/51

    2,185       2,423,383  

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

    3,615       3,852,578  

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

    3,085       3,258,408  
   

 

 

 
      13,161,476  
Massachusetts — 1.4%  

Massachusetts Development Finance Agency, RB:

   

Boston Medical Center, Series D, 5.00%, 7/01/44

    1,905       2,090,166  

Foxborough Regional Charter School, Series A, 7.00%, 7/01/42

    1,025       1,101,117  

North Hill Communities Issue, Series A,
6.50%, 11/15/43(b)

    2,020       2,271,126  

Massachusetts Development Finance Agency, Refunding RB:

   

6.75%, 1/01/21(a)

    895       1,045,092  

Series I, 6.75%, 1/01/36

    595       680,424  
   

 

 

 
      7,187,925  
Security   Par
(000)
    Value  
Michigan — 0.9%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39

  $ 2,785     $ 3,087,702  

Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 7/01/44

    415       444,320  

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

    920       1,000,748  
   

 

 

 
      4,532,770  
Minnesota — 0.1%  

St. Paul Housing & Redevelopment Authority, Refunding RB, Hmong College Prep Academy Project, Series A:

   

5.75%, 9/01/46

    195       202,593  

6.00%, 9/01/51

    290       304,561  
   

 

 

 
      507,154  
Mississippi — 0.1%  

Mississippi Business Finance Corp., RB, Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 2/01/36(b)(e)

    620       634,936  
   

 

 

 
Missouri — 1.3%  

City of St. Louis Missouri IDA, Refunding RB:

   

4.38%, 11/15/35

    685       699,618  

4.75%, 11/15/47

    760       777,936  

Kirkwood Missouri IDA, RB, Aberdeen Heights, Series A, 8.25%, 5/15/20(a)

    2,315       2,714,453  

Lees Summit Missouri IDA, RB, John Knox Obligated Group, 5.25%, 8/15/39

    2,235       2,373,526  
   

 

 

 
      6,565,533  
New Jersey — 5.2%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,065       1,116,397  

5.25%, 11/01/44

    770       803,395  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45(b)

    1,150       1,155,577  

New Jersey EDA, RB:

   

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 1/01/43

    2,155       2,398,644  

Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31

    2,250       2,594,767  

Provident Group-Kean Properties, Series A, 5.00%, 7/01/32

    165       180,997  

Provident Group-Kean Properties, Series A, 5.00%, 7/01/37

    260       280,184  

Team Academy Charter School Project, 6.00%, 10/01/43

    1,530       1,714,457  

New Jersey EDA, Refunding RB, Greater Brunswick Charter School, Inc. Project, Series A, 6.00%, 8/01/49(b)

    500       512,470  

New Jersey Health Care Facilities Financing Authority, Refunding RB(a):

   

St. Barnabas Health Care System, Series A, 5.63%, 7/01/21

    2,650       3,055,635  

St. Joseph’s Healthcare System, 6.63%, 7/01/18

    2,590       2,685,053  

New Jersey Transportation Trust Fund Authority, RB, Transportation Program, Series AA, 5.25%, 6/15/41

    1,140       1,242,908  

Tobacco Settlement Financing Corp., Refunding RB, Series 1A, 5.00%, 6/01/41

    5,210       4,994,306  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 5.00%, 6/01/29

    3,735       3,743,180  
   

 

 

 
      26,477,970  
 

 

 

22    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Mexico — 0.6%  

New Mexico Hospital Equipment Loan Council, Refunding RB, Gerald Champion Regional Medical Center Project, 5.50%, 7/01/42

  $ 2,970     $ 3,211,313  
   

 

 

 
New York — 7.9%  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A:

   

6.25%, 6/01/41(b)

    5,300       5,484,175  

5.00%, 6/01/42

    3,155       3,025,645  

5.00%, 6/01/45

    1,185       1,122,231  

Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through:

   

Series A-2B, 5.00%, 6/01/51

    900       928,476  

Series B, 5.00%, 6/01/45

    1,415       1,487,448  

County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 8/01/46

    3,315       2,730,499  

County of Nassau New York Tobacco Settlement Corp., Refunding RB, Asset-Backed, Series A-3, 5.13%, 6/01/46

    275       268,736  

County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44

    1,310       1,409,895  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45

    2,890       2,834,743  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(a)

    1,490       1,573,455  

6.50%, 11/15/18(a)

    125       132,001  

6.50%, 11/15/28

    385       406,976  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

    1,270       1,365,428  

3 World Trade Center Project, Class 1,
5.00%, 11/15/44(b)

    4,705       5,114,194  

3 World Trade Center Project, Class 2,
5.15%, 11/15/34(b)

    455       502,952  

3 World Trade Center Project, Class 2,
5.38%, 11/15/40(b)

    1,080       1,201,748  

3 World Trade Center Project, Class 3,
7.25%, 11/15/44(b)

    1,565       1,884,870  

New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 8/01/31

    1,195       1,275,113  

Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42(b)

    1,335       1,335,895  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/36

    1,340       1,492,304  

State of New York Dormitory Authority, Refunding RB, Orange Regional Medical Center, 5.00%, 12/01/33(b)

    955       1,048,857  

Town of Oyster Bay New York, GO, BAN, Series A, 3.50%, 6/01/18

    3,035       3,060,160  

Town of Oyster Bay New York, GO, Refunding, BAN, Series B, 3.50%, 2/02/18

    505       507,242  
   

 

 

 
      40,193,043  
North Carolina — 1.5%  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Series A:

   

Deerfield Project, 6.13%, 11/01/18(a)

    4,565       4,795,167  

Retirement Facilities Whitestone Project, 7.75%, 3/01/31

    1,000       1,113,460  

Retirement Facilities Whitestone Project, 7.75%, 3/01/41

    1,420       1,566,686  
   

 

 

 
      7,475,313  
Security   Par
(000)
    Value  
Ohio — 3.0%  

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

   

Senior Turbo Term, 5.88%, 6/01/47

  $ 5,570     $ 5,214,690  

5.75%, 6/01/34

    6,745       6,326,742  

6.00%, 6/01/42

    3,040       2,888,030  

County of Hamilton Ohio, Refunding RB, Improvement-Life Enriching Communities, 5.00%, 1/01/46

    875       934,754  
   

 

 

 
      15,364,216  
Oklahoma — 0.2%  

Tulsa Oklahoma Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/37

    750       840,780  
   

 

 

 
Oregon — 0.8%  

County of Multnomah Oregon Hospital Facilities Authority, Refunding RB, Mirabella at South Waterfront, 5.50%, 10/01/49

    1,765       1,898,099  

Polk County Hospital Facility Authority, RB, Dallas Retirement Village Project, Series A:

   

5.13%, 7/01/35

    620       647,298  

5.38%, 7/01/45

    1,435       1,508,888  
   

 

 

 
      4,054,285  
Pennsylvania — 3.5%  

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 5/01/42

    2,140       2,231,763  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/36

    2,000       2,213,960  

County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran:

   

6.38%, 1/01/19(a)

    5,550       5,883,555  

6.38%, 1/01/39

    615       642,072  

County of Lehigh Pennsylvania General Purpose Authority, Refunding RB, Bible Fellowship Church Homes, 5.13%, 7/01/32

    1,800       1,832,346  

County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bonds, 7.00%, 7/01/32

    2,030       2,352,486  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

    2,710       2,871,137  
   

 

 

 
      18,027,319  
Puerto Rico — 1.2%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement, Asset-Backed Bonds:

   

5.50%, 5/15/39

    635       623,202  

5.63%, 5/15/43

    2,145       2,101,585  

5.38%, 5/15/33

    960       948,538  

Commonwealth of Puerto Rico, GO, Refunding, Series A(d):

   

Public Improvement, 5.50%, 7/01/39

    665       194,513  

8.00%, 7/01/35

    1,765       525,087  

Commonwealth of Puerto Rico, GO, , 6.00%, 7/01/38(d)

    750       219,375  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 6.00%, 7/01/44

    1,060       677,075  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 7/01/38

    1,150       734,562  
   

 

 

 
      6,023,937  
Rhode Island — 2.3%  

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

    4,190       1,047,500  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 6/01/35

    1,000       1,077,680  

Series A, 5.00%, 6/01/40

    980       1,041,534  

Series B, 4.50%, 6/01/45

    5,055       5,064,504  
 

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Rhode Island (continued)  

Tobacco Settlement Financing Corp., Refunding RB (continued):

   

Series B, 5.00%, 6/01/50

  $ 3,330     $ 3,435,827  
   

 

 

 
      11,667,045  
Texas — 10.1%  

Central Texas Regional Mobility Authority, Refunding RB:

   

CAB, 0.00%, 1/01/28(c)

    1,000       711,290  

CAB, 0.00%, 1/01/29(c)

    2,000       1,360,680  

CAB, 0.00%, 1/01/30(c)

    1,170       758,956  

CAB, 5.00%, 1/01/33(c)

    3,690       2,075,809  

CAB, 0.00%, 1/01/34(c)

    4,000       2,145,880  

Senior Lien, 6.25%, 1/01/21(a)

    2,210       2,550,207  

City of Houston Texas Airport System, Refunding ARB, AMT:

   

Special Facilities, Continental Airlines, Inc., Series A, 6.63%, 7/15/38

    2,890       3,190,329  

United Airlines, Inc. Terminal E Project, 5.00%, 7/01/29

    910       997,260  

Clifton Higher Education Finance Corp., ERB, Idea Public Schools(a):

   

5.50%, 8/15/21

    955       1,099,253  

5.75%, 8/15/21

    720       835,373  

County of Bexar Texas Health Facilities Development Corp., RB, Army Retirement Residence Project,
6.20%, 7/01/20(a)

    5,040       5,687,287  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/23(a)

    475       600,552  

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

    2,090       2,272,729  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Senior Living Center Project, Series A, 8.25%, 11/15/44

    4,200       4,469,388  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project, 5.00%, 10/01/49

    865       924,313  

County of Travis Texas Health Facilities Development Corp., Refunding RB, 7.13%, 1/01/46

    3,080       3,340,260  

Mesquite Health Facility Development Corp., Refunding RB, 5.13%, 2/15/42

    810       839,638  

Mission Economic Development Corp., RB, Senior Lien, Natgasoline Project, Series B, AMT, 5.75%, 10/01/31(b)

    1,325       1,391,899  

New Hope Cultural Education Facilities Corp., RB, Stephenville LLC Tarleton State University Project:

   

5.88%, 4/01/36

    1,210       1,364,553  

6.00%, 4/01/45

    1,845       2,040,921  

Newark Higher Education Finance Corp., RB, Series A(b):

   

5.50%, 8/15/35

    290       297,917  

5.75%, 8/15/45

    580       595,677  

North Texas Education Finance Corp., ERB, Uplift Education, Series A, 5.25%, 12/01/47

    1,600       1,735,840  

Red River Health Facilities Development Corp., First MRB, Project:

   

Eden Home, Inc., 7.25%, 12/15/42(d)

    2,895       1,679,100  

Wichita Falls Retirement Foundation, 5.13%, 1/01/41

    900       928,674  

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

   

LBJ Infrastructure Group LLC, 7.00%, 6/30/40

    3,775       4,260,578  

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

    3,000       3,327,000  
   

 

 

 
      51,481,363  
Security   Par
(000)
    Value  
Utah — 0.6%  

State of Utah Charter School Finance Authority, Refunding RB, 6.75%, 10/15/43

  $ 2,950     $ 2,995,165  
   

 

 

 
Vermont — 0.2%  

Vermont EDA, Refunding, MRB, Wake Robin Corp. Project, 5.40%, 5/01/33

    770       816,246  
   

 

 

 
Virginia — 2.4%  

Lower Magnolia Green Community Development Authority, Special Assessment Bonds(b):

   

5.00%, 3/01/35

    495       505,934  

5.00%, 3/01/45

    505       511,459  

Mosaic District Community Development Authority, Special Assessment, Series A:

   

6.63%, 3/01/26

    1,485       1,618,858  

6.88%, 3/01/36

    1,300       1,420,029  

Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 6/01/47

    2,280       2,191,468  

Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 7/01/45(b)

    535       558,133  

Virginia College Building Authority, Refunding RB, Marymount University Project, Series A, 5.00%, 7/01/45(b)

    375       391,215  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37

    4,440       5,019,642  
   

 

 

 
      12,216,738  
Washington — 0.8%  

County of King Washington Public Hospital District No. 4, GO, Refunding, Snoqualmie Valley Hospital, 7.00%, 12/01/40

    1,455       1,512,196  

Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A, 5.50%, 9/01/42

    1,495       1,533,062  

Washington State Housing Finance Commission, Refunding RB(b):

   

5.75%, 1/01/35

    315       319,026  

6.00%, 1/01/45

    850       862,750  
   

 

 

 
      4,227,034  
Wisconsin — 1.1%  

Public Finance Authority, RB:

   

Delray Beach Radiation Therapy, 6.85%, 11/01/46(b)

    900       924,282  

Delray Beach Radiation Therapy, 7.00%, 11/01/46(b)

    570       591,147  

Series A, 5.00%, 12/01/45

    1,505       1,579,964  

Series A, 5.15%, 12/01/50

    1,170       1,226,804  

Wisconsin Health & Educational Facilities Authority, Refunding RB, St. Johns Communities, Inc., Series A(a):

   

7.25%, 9/15/19

    425       472,298  

7.63%, 9/15/19

    855       956,061  
   

 

 

 
      5,750,556  
   

 

 

 

Total Municipal Bonds — 87.4%

 

    445,084,310  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(h)

 

Colorado — 2.4%  

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

    11,468       12,150,656  
   

 

 

 
Florida — 4.9%  

City of New York New York Housing Development Corp., RB, M/F Housing, Series D-1, Class B, 4.25%, 11/01/45

    8,996       9,257,760  

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A, AMT(a):

   

5.25%, 10/01/18

    11,655       12,071,899  
 

 

 

24    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A, AMT(a) (continued):

   

5.25%, 10/01/18

  $ 3,345     $ 3,464,651  
   

 

 

 
      24,794,310  
Illinois — 2.7%  

Illinois Finance Authority, RB, Carle Foundation, Series A (AGM), 6.00%, 8/15/41

    7,180       8,110,097  

State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 1/01/40

    5,056       5,743,843  
   

 

 

 
      13,853,940  
New York — 11.6%  

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution:

   

Fiscal 2013, Series CC, 5.00%, 6/15/47

    14,181       16,138,758  

Series HH, 5.00%, 6/15/31(i)

    8,610       9,648,337  

Hudson Yards Infrastructure Corp., RB, Series A,
5.75%, 2/15/47(i)

    4,520       5,135,746  

New York Liberty Development Corp., RB, World Trade Center Port Authority Consolidated, 5.25%, 12/15/43

    18,105       20,409,561  

New York Liberty Development Corp., Refunding RB, World Trade Center Project, 5.75%, 11/15/51(i)

    6,600       7,590,096  
   

 

 

 
      58,922,498  
Pennsylvania — 0.6%  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    2,505       2,944,502  
   

 

 

 
Washington — 1.7%  

City of Bellingham Washington Water & Sewer Revenue, RB, 5.00%, 8/01/40

    7,966       8,838,204  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 23.9%

 

    121,504,110  
   

 

 

 

Total Long-Term Investments — 111.3%
(Cost — $530,889,788)

 

    566,588,420  
   

 

 

 
Security       
Shares
    Value  

Short-Term Securities

   

BlackRock Liquidity Funds, MuniCash, Institutional Class,
0.74%(j)(k)

    3,874,985     $ 3,876,148  
   

 

 

 

Total Short-Term Securities — 0.8%
(Cost — $3,876,148)

 

    3,876,148  
   

 

 

 

Total Investments — 112.1%
(Cost — $534,765,936)

 

    570,464,568  

Other Assets Less Liabilities — 1.3%

 

    6,475,614  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (13.4)%

 

    (67,961,320
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 508,978,862  
   

 

 

 

 

(a)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)  Zero-coupon bond.
(d)  Issuer filed for bankruptcy and/or is in default.
(e)  Variable rate security. Rate shown is the rate in effect as of period end.
(f)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.
(g)  Non-income producing security.
(h)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(i)  All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between February 15, 2019 to November 15, 2019 is $11,849,809. See Note 4 of the Notes to Financial Statements for details.
(j)  Annualized 7-day yield as of period end.
 
(k)  During the six months ended October 31, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated    Shares
Held at
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     1,057,065        2,817,920        3,874,985      $ 3,876,148      $ 15,053      $ 515      $ (96
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes capital gain distribution, if applicable.  

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     (43        12/19/17        $ 5,372        $ 78,743  

Long U.S. Treasury Bond

     (55        12/19/17          8,386          161,430  

Ultra Long U.S. Treasury Bond

     (20        12/19/17          3,296          70,048  

5-Year U.S. Treasury Note

     (61        12/29/17          7,148          67,216  
                 

 

 

 
     $ 377,437  
                 

 

 

 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 377,437      $      $ 377,437  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.  

For the six months ended October 31, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ (570,618    $      $ (570,618
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                            

Futures contracts

   $      $      $      $      $ 616,931      $      $ 616,931  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 21,801,574  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments(a)

   $        $ 566,588,420        $        $ 566,588,420  

Short-Term Securities

     3,876,148                        3,876,148  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,876,148        $ 566,588,420        $        $ 570,464,568  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 377,437        $        $        $ 377,437  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each state or political subdivision.  
  (b)  Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.  

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $67,756,523 are categorized as Level 2 within the disclosure hierarchy.

During the six months ended October 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

26    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

 

Alabama — 0.6%  

County of Tuscaloosa Board of Education, RB, Special Tax School Warrants, 5.00%, 2/01/43

  $ 885     $ 1,013,121  

Homewood Educational Building Authority, Refunding RB, Educational Facilities, Samford University, Series A, 5.00%, 12/01/47

    1,010       1,129,766  
   

 

 

 
      2,142,887  
Alaska — 0.7%  

Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41

    990       1,093,029  

Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC):

   

6.00%, 9/01/19

    765       831,853  

6.00%, 9/01/19

    435       473,015  
   

 

 

 
      2,397,897  
Arizona — 1.9%  

County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group, Series A:

   

5.00%, 1/01/38

    280       324,383  

4.00%, 1/01/41

    3,100       3,212,685  

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

   

5.00%, 10/01/27

    2,700       2,886,597  

5.00%, 10/01/29

    400       427,488  
   

 

 

 
      6,851,153  
California — 14.2%  

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

    5,000       6,018,850  

California Health Facilities Financing Authority, RB:

   

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

    550       590,194  

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

    1,200       1,349,748  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/37

    1,090       1,236,125  

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42

    1,480       1,665,903  

City & County of San Francisco California Airports Commission, Refunding ARB, Series A, AMT, 5.00%, 5/01/42

    185       212,741  

City of Redding California Electric System Revenue, COP, Refunding Series A, (AGM):

   

5.00%, 6/01/18(a)

    620       634,427  

5.00%, 6/01/30

    600       612,720  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT:

   

Series A, 5.00%, 3/01/36

    410       475,563  

Series A, 5.00%, 3/01/37

    455       526,558  

Series A-1, 5.75%, 3/01/34

    850       959,811  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/21(a)

    2,175       2,514,039  

County of San Mateo California Community College District, GO, CAB, Election of 2001, Series C (NPFGC),
0.00%, 9/01/30(b)

    12,740       8,880,035  

Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 6.25%, 8/01/43(c)

    2,500       2,003,725  

Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2008, Series B, 0.00%, 8/01/36(b)

    3,750       1,921,012  
Security   Par
(000)
    Value  
California (continued)  

Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C, 0.00%, 8/01/38(b)

  $ 5,000     $ 2,355,950  

San Diego California Community College District, GO, CAB, Election of 2006(b):

   

0.00%, 8/01/31

    2,145       1,216,108  

0.00%, 8/01/32

    2,680       1,422,866  

San Diego California Unified School District, GO, CAB, Election of 2008(b):

   

Series C, 0.00%, 7/01/38

    1,600       774,832  

Series G, 0.00%, 7/01/34

    650       307,879  

Series G, 0.00%, 7/01/35

    690       306,857  

Series G, 0.00%, 7/01/36

    1,035       432,185  

Series G, 0.00%, 7/01/37

    690       270,632  

San Diego California Unified School District, GO, Refunding, Series R-1(b):

   

0.00%, 7/01/30

    5,000       3,433,550  

0.00%, 7/01/31

    1,280       845,274  

San Marcos Unified School District, GO, Election of 2010, Series A:

   

5.00%, 8/01/34

    700       783,230  

5.00%, 8/01/38

    600       670,644  

Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B, 0.00%, 8/01/36(b)

    5,500       2,669,920  

West Basin Municipal Water District California, COP, Refunding, Series B (AGC), 5.00%, 8/01/18(a)

    5,035       5,182,928  
   

 

 

 
      50,274,306  
Colorado — 0.6%  

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

    2,000       2,175,760  
   

 

 

 
District of Columbia — 1.5%  

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

    5,360       5,458,892  
   

 

 

 
Florida — 12.7%  

City of Gainesville Florida Utilities System Revenue, RB, Series A, 5.00%, 10/01/37(d)

    355       419,418  

County of Brevard Florida Health Facilities Authority, Refunding RB, Health First, Inc. Project, 5.00%, 4/01/39

    1,600       1,759,264  

County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/18(a)

    850       882,139  

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

    1,450       1,576,121  

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

    4,050       4,185,837  

County of Lee Florida, Refunding ARB, Series A, AMT:

   

5.63%, 10/01/26

    960       1,086,624  

5.38%, 10/01/32

    3,160       3,509,085  

County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 5.75%,
7/01/18(a)

    1,400       1,443,778  

County of Miami-Dade Florida, RB, Seaport:

   

Department, Series A, 6.00%, 10/01/38

    2,025       2,416,027  

Department, Series B, AMT, 6.25%, 10/01/38

    415       492,771  

Department, Series B, AMT, 6.00%, 10/01/42

    660       765,382  

Series B, AMT, 6.00%, 10/01/30

    640       754,707  

County of Miami-Dade Florida Aviation, Refunding ARB, AMT, 5.00%, 10/01/34

    190       215,211  

County of Miami-Dade Florida Educational Facilities Authority, RB, University of Miami, Series A, 5.00%, 4/01/40

    2,995       3,371,382  

County of Miami-Dade Florida Health Facilities Authority, Refunding RB, Nicklaus Children’s Hospital Project, 5.00%, 8/01/42

    605       685,889  
 

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

County of Miami-Dade Florida School Board Foundation, Inc., COP, Series B (AGC), 5.00%, 5/01/18(a)

  $ 10,000     $ 10,193,400  

County of Orange Florida Health Facilities Authority, Refunding RB, Presbyterian Retirement Communities Project:

   

5.00%, 8/01/41

    560       617,742  

5.00%, 8/01/47

    1,620       1,779,878  

County of Palm Beach Florida Solid Waste Authority, Refunding RB, Series B:

   

5.00%, 10/01/21(a)

    30       34,087  

5.00%, 10/01/31

    1,970       2,210,360  

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

    275       290,048  

Florida Ports Financing Commission, Refunding RB, State Transportation Trust Fund, Series B, AMT:

   

5.13%, 6/01/27

    2,000       2,244,360  

5.38%, 10/01/29

    1,050       1,196,779  

Greater Orlando Aviation Authority, ARB, Priority Sub-Series A, AMT, 4.00%, 10/01/47

    2,880       2,958,307  
   

 

 

 
      45,088,596  
Georgia — 3.1%  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

    500       585,995  

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

    7,475       9,875,671  

Private Colleges & Universities Authority, RB, Savannah College of Art & Design:

   

5.00%, 4/01/33

    140       156,197  

5.00%, 4/01/44

    380       413,618  
   

 

 

 
      11,031,481  
Illinois — 16.3%  

City of Chicago Illinois O’Hare International Airport, ARB, Senior Lien, Series D, 5.25%, 1/01/42

    2,900       3,404,049  

City of Chicago Illinois O’Hare International Airport, GARB:

   

3rd Lien, Series A, 5.75%, 1/01/21(a)

    4,290       4,876,915  

3rd Lien, Series A, 5.75%, 1/01/39

    820       922,123  

Senior Lien, Series D, AMT, 5.00%, 1/01/42

    230       258,757  

City of Chicago Illinois Transit Authority, RB:

   

5.25%, 12/01/49

    900       995,616  

Sales Tax Receipts, 5.25%, 12/01/36

    595       642,005  

County of Cook Illinois Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37

    45       47,795  

Illinois Finance Authority, RB, Carle Foundation, Series A:

   

5.75%, 8/15/34

    650       732,648  

6.00%, 8/15/41

    1,000       1,131,140  

Illinois Finance Authority, Refunding RB, Silver Cross Hospital & Medical Centers, Series C:

   

4.13%, 8/15/37

    740       753,039  

5.00%, 8/15/44

    350       374,647  

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

    10,490       10,513,078  

Illinois State Toll Highway Authority, RB, Series B, 5.00%, 1/01/37

    2,785       3,179,077  

Kane McHenry Cook & De Kalb Counties Unit School District No. 300, GO, Refunding, 5.25%, 1/01/33

    9,145       10,389,177  

Metropolitan Pier & Exposition Authority, RB, CAB, McCormick Place Expansion Project, Series A (NPFGC)(b):

   

0.00%, 12/15/26

    5,000       3,643,750  

0.00%, 12/15/33

    9,950       5,188,925  
Security   Par
(000)
    Value  
Illinois (continued)  

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 6/15/44(b)

  $ 3,450     $ 1,114,591  

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

    675       760,604  

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

    3,565       3,880,502  

State of Illinois, GO:

   

5.25%, 2/01/33

    830       888,689  

5.50%, 7/01/33

    820       889,954  

5.25%, 2/01/34

    830       886,324  

5.50%, 7/01/38

    445       476,644  

State of Illinois Toll Highway Authority, Refunding RB, Series B, 5.50%, 1/01/18(a)

    1,875       1,888,744  
   

 

 

 
      57,838,793  
Indiana — 1.2%  

Indiana Finance Authority, RB, Series A:

   

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

    1,100       1,245,453  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

    515       554,356  

Indiana Health & Educational Facilities Financing Authority, Refunding RB, Ascension Senior Credit Group, 5.00%, 11/15/46

    700       790,104  

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

   

5.25%, 1/01/19(a)

    115       120,557  

5.25%, 1/01/29

    485       508,668  

State of Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 7/01/40

    890       961,334  
   

 

 

 
      4,180,472  
Iowa — 2.9%  

Iowa Finance Authority, RB, Iowa Health Care Facilities, Series A (AGC), 5.63%, 8/15/19(a)

    5,725       6,176,531  
   

 

 

 

Iowa Student Loan Liquidity Corp., RB, Senior Series A-2, AMT:

   

5.60%, 12/01/26

    1,855       1,989,728  

5.70%, 12/01/27

    835       890,494  

5.80%, 12/01/29

    570       606,486  

5.85%, 12/01/30

    595       633,443  
   

 

 

 
      10,296,682  
Louisiana — 1.5%  

City of New Orleans Louisiana Aviation Board, ARB, Series B, AMT, 5.00%, 1/01/40

    2,795       3,118,493  

City of Shreveport Louisiana Water & Sewer Revenue, RB, Series A (AGM), 5.00%, 12/01/41

    855       986,687  

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

    1,250       1,317,125  
   

 

 

 
      5,422,305  
Maine — 0.2%  

Maine State Housing Authority, RB, Series D-1, 3.65%, 11/15/42

    645       634,828  
   

 

 

 
Massachusetts — 2.6%  

Commonwealth of Massachusetts, GOL, Consolidated Loan, Series D, 4.00%, 2/01/47

    10       10,392  

Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A, 5.00%, 1/01/47

    2,090       2,337,351  

Massachusetts HFA, Refunding RB, AMT:

   

Series A, 4.45%, 12/01/42

    795       829,583  

Series C, 5.35%, 12/01/42

    640       678,797  

Massachusetts Port Authority, Refunding ARB, Series B, AMT, 4.00%, 7/01/46

    3,620       3,732,256  
 

 

 

28    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts (continued)  

Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series A, 5.00%, 5/15/43

  $ 1,280     $ 1,455,104  
   

 

 

 
      9,043,483  
Michigan — 2.7%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, 2nd Lien, Series E (BHAC), 5.75%, 7/01/18(a)

    2,500       2,577,325  

City of Detroit Michigan Water Supply System Revenue, RB, 2nd Lien, Series B (AGM), 6.25%, 7/01/19(a)

    400       433,516  

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41

    1,700       1,923,312  

Michigan Finance Authority, Refunding RB:

   

Henry Ford Health System, 3.25%, 11/15/42

    480       439,037  

Trinity Health Credit Group, 5.00%, 12/01/21(a)

    20       22,812  

Michigan State Hospital Finance Authority, Refunding RB, Ascension Senior Credit Group, 4.00%, 11/15/47

    600       616,032  

Royal Oak Hospital Finance Authority, Refunding RB, Beaumont Health Credit Group, Series D, 5.00%, 9/01/39

    1,040       1,147,931  

State of Michigan Building Authority, Refunding RB, Facilities Program:

   

Series I-A, 5.38%, 10/15/36

    145       164,929  

Series I-A, 5.38%, 10/15/41

    700       794,773  

Series II-A (AGM), 5.25%, 10/15/36

    900       1,019,421  

Western Michigan University, Refunding RB, General, University and College Improvements (AGM), 5.00%, 11/15/39

    380       430,186  
   

 

 

 
      9,569,274  
Minnesota — 0.7%  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

   

6.50%, 11/15/18(a)

    385       406,441  

6.50%, 11/15/38

    2,115       2,222,632  
   

 

 

 
      2,629,073  
Nebraska — 1.8%  

Central Plains Energy Project Nebraska, RB, Gas Project No. 3:

   

5.00%, 9/01/32

    5,010       5,523,625  

5.25%, 9/01/37

    750       828,525  
   

 

 

 
      6,352,150  
Nevada — 1.6%  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/19(a)

    850       907,894  

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A:

   

5.25%, 7/01/42

    500       538,540  

(AGM), 5.25%, 7/01/39

    3,800       4,102,214  
   

 

 

 
      5,548,648  
New Jersey — 8.6%  

New Jersey EDA, RB:

   

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 1/01/43

    895       996,189  

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.13%, 1/01/34

    685       759,014  

School Facilities Construction (AGC), 6.00%, 12/15/18(a)

    1,975       2,083,941  

School Facilities Construction (AGC), 6.00%, 12/15/18(a)

    25       26,379  

Series WW, 5.25%, 6/15/33

    155       171,469  

Series WW, 5.00%, 6/15/34

    205       222,122  

Series WW, 5.00%, 6/15/36

    925       994,634  

Series WW, 5.25%, 6/15/40

    265       287,464  

New Jersey EDA, Refunding RB:

   

Series B, 5.50%, 6/15/30

    5,360       6,258,926  

Sub Series A, 4.00%, 7/01/32

    1,270       1,278,052  
Security   Par
(000)
    Value  
New Jersey (continued)  

New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT:

   

5.50%, 12/01/26

  $ 375     $ 409,991  

5.75%, 12/01/27

    2,415       2,653,602  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT, 4.35%, 11/01/33

    970       1,024,960  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.25%, 6/15/33

    1,490       1,619,541  

Transportation Program, Series AA, 5.00%, 6/15/38

    1,885       2,017,346  

Transportation System, Series A, 5.50%, 6/15/41

    3,150       3,387,825  

Transportation System, Series AA, 5.50%, 6/15/39

    1,150       1,249,854  

Transportation System, Series B, 5.50%, 6/15/31

    1,000       1,095,900  

Transportation System, Series B, 5.00%, 6/15/42

    520       541,070  

Transportation System, Series D, 5.00%, 6/15/32

    735       793,337  

New Jersey Turnpike Authority, Refunding RB, Series B, 4.00%, 1/01/37

    2,310       2,471,261  
   

 

 

 
      30,342,877  
New York — 8.0%  

City of New York, GO, Series B-1, 4.00%, 10/01/41

    2,710       2,873,928  

City of New York New York Municipal Water Finance Authority, Refunding RB, Second General Resolution, Fiscal 2012, Series BB, 5.25%, 6/15/44

    1,425       1,618,116  

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-4, 5.50%, 1/15/33

    1,600       1,683,664  

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

    2,750       2,893,797  

City of New York New York Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/32

    1,480       1,713,041  

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:

   

5.75%, 2/15/21(a)

    420       480,656  

5.75%, 2/15/47

    280       318,979  

Hudson Yards Infrastructure Corp., Refunding RB, 2nd Indenture, Series A, 5.00%, 2/15/39

    625       730,044  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(a)

    2,985       3,152,190  

6.50%, 11/15/18(a)

    245       258,722  

6.50%, 11/15/28

    770       813,952  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Sub-Series B-1, 4.00%, 8/01/42

    2,600       2,763,930  

New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 1/01/50

    2,715       3,009,550  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 206th Series, AMT, 5.00%, 11/15/37

    600       699,924  

State of New York Dormitory Authority, RB:

   

Sales Tax, Group C, Series A, 4.00%, 3/15/47

    1,530       1,614,395  

Series B, 5.75%, 3/15/19(a)

    1,200       1,275,792  

State of New York HFA, RB, Affordable Housing, M/F Housing, Series B, AMT, 5.30%, 11/01/37

    2,500       2,503,075  
   

 

 

 
      28,403,755  
Ohio — 1.6%  

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

    530       631,108  

State of Ohio Turnpike Commission, RB, CAB, Junior Lien, Infrastructure Projects, Series A-2, 0.00%, 2/15/37(b)

    10,000       5,082,600  
   

 

 

 
      5,713,708  
Oregon — 1.3%  

Counties of Washington & Multnomah Oregon School District No. 48J Beaverton, GO, Convertible CAB, Series D, 5.00%, 6/15/36(c)

    835       946,698  
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Oregon (continued)  

County of Clackamas Oregon Community College District, GO, Convertible Deferred Interest Bonds, Series A, 5.00%, 6/15/40(c)

  $ 440     $ 450,274  

County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 6/15/38(b)

    995       433,561  

State of Oregon Housing & Community Services Department, RB, Series D, 3.45%, 1/01/38

    2,840       2,828,470  
   

 

 

 
      4,659,003  
Pennsylvania — 7.4%  

Commonwealth Financing Authority, RB, Series B, 5.00%, 6/01/42

    1,600       1,746,704  

County of Berks Industrial Development Authority, Refunding RB, Tower Health Project, 4.00%, 11/01/47

    1,855       1,862,606  

Pennsylvania Economic Development Financing Authority, RB:

   

Pennsylvania Bridge Finco LP, 5.00%, 12/31/38

    1,305       1,461,496  

Pennsylvania Bridge Finco LP, AMT, 5.00%, 12/31/34

    7,290       8,251,915  

Pennsylvania Rapid Bridge Replacement Project, AMT, 5.00%, 6/30/42

    1,035       1,147,639  

Pennsylvania Higher Educational Facilities Authority, Refunding RB, Thomas Jefferson University, Series A, 5.25%, 9/01/50

    2,330       2,634,927  

Pennsylvania Turnpike Commission, RB:

   

Series A, 5.00%, 12/01/38

    620       707,897  

Series A-1, 5.00%, 12/01/41

    2,385       2,701,012  

Series B, 5.00%, 12/01/40

    935       1,065,404  

Series C, 5.50%, 12/01/33

    555       651,792  

Sub-Series B-1, 5.00%, 6/01/42

    1,750       1,974,210  

Subordinate, Special Motor License Fund,
6.00%, 12/01/20(a)

    575       657,093  

Pennsylvania Turnpike Commission, Refunding RB, Series A-1, 5.00%, 12/01/40

    765       868,589  

Philadelphia School District, GO, Series E(a):

   

6.00%, 9/01/18

    5       5,201  

6.00%, 9/01/18

    395       411,017  
   

 

 

 
      26,147,502  
Rhode Island — 1.2%  

Rhode Island Commerce Corp., RB, Airport Corp., Series D, 5.00%, 7/01/41

    355       398,008  

Tobacco Settlement Financing Corp., Refunding RB, Series B:

   

4.50%, 6/01/45

    1,055       1,056,983  

5.00%, 6/01/50

    2,630       2,713,582  
   

 

 

 
      4,168,573  
South Carolina — 4.9%  

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

    115       132,662  

South Carolina Public Service Authority, Refunding RB, Series A(a):

   

5.50%, 1/01/19

    80       84,097  

5.50%, 1/01/19

    920       967,113  

South Carolina Transportation Infrastructure Bank, RB, Series A, 5.25%, 10/01/19(a)

    3,000       3,228,570  

State of South Carolina Ports Authority, RB, AMT, 5.25%, 7/01/50

    2,330       2,601,911  

State of South Carolina Public Service Authority, RB, Santee Cooper:

   

Series A, 5.50%, 12/01/54

    6,225       7,025,037  

Series E, 5.50%, 12/01/53

    745       837,231  

State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series B, 5.00%, 12/01/38

    2,080       2,292,576  
   

 

 

 
      17,169,197  
Security   Par
(000)
    Value  
South Dakota — 0.9%  

South Dakota Health & Educational Facilities Authority, Refunding RB, Avera Health Issue, 4.00%, 7/01/42

  $ 3,000     $ 3,048,030  
   

 

 

 
Tennessee — 2.1%  

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, Refunding RB, Vanderbilt University, Series B, 5.50%, 10/01/19(a)

    5,000       5,409,500  

Tennessee Housing Development Agency, RB:

   

3.60%, 7/01/42

    550       549,626  

3.65%, 7/01/47

    1,470       1,466,781  
   

 

 

 
      7,425,907  
Texas — 14.4%  

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC):

   

5.38%, 5/15/19(a)

    1,280       1,361,498  

6.00%, 5/15/19(a)

    1,990       2,135,568  

6.00%, 11/15/35

    110       118,450  

5.38%, 11/15/38

    70       74,115  

City of San Antonio Texas Electric & Gas Revenue, RB, Junior Lien, 5.00%, 2/01/38

    575       652,522  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/36(b)

    2,130       982,399  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Cook Children’s Medical Center, 5.25%, 12/01/39

    750       847,342  

Dallas-Fort Worth International Airport, ARB, Joint Improvement, AMT:

   

Series D, 5.00%, 11/01/38

    1,975       2,189,485  

Series D, 5.00%, 11/01/42

    1,500       1,656,240  

Series H, 5.00%, 11/01/32

    3,000       3,347,760  

Dallas-Fort Worth International Airport, Refunding ARB, Series F, 5.25%, 11/01/33

    975       1,145,410  

Grand Parkway Transportation Corp., RB, Convertible CAB, Series B, 5.80%, 10/01/46(c)

    2,095       1,953,399  

Leander ISD, GO, Refunding, CAB, Series D (PSF-GTD), 0.00%, 8/15/38(b)

    3,420       1,411,605  

North Texas Tollway Authority, Refunding RB:

   

1st Tier System (NPFGC), 5.75%, 1/01/18(a)

    600       604,644  

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

    195       196,509  

1st Tier System, Series A, 6.00%, 1/01/19(a)

    2,270       2,396,598  

1st Tier System, Series A, 6.00%, 1/01/28

    525       554,594  

1st Tier System, Series K-2 (AGC), 6.00%, 1/01/19(a)

    4,015       4,241,326  

1st Tier System, Series S (NPFGC), 5.75%, 1/01/18(a)

    805       811,231  

1st Tier, Series K-1 (AGC), 5.75%, 1/01/19(a)

    3,800       4,003,262  

1st Tier-Series A, 5.00%, 1/01/43(d)

    2,490       2,876,174  

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing & Expansion Project, CAB(b):

   

0.00%, 9/15/35

    4,990       2,242,905  

0.00%, 9/15/36

    11,525       4,876,227  

0.00%, 9/15/37

    8,245       3,279,284  

Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements:

   

5.00%, 12/15/31

    1,190       1,330,884  

5.00%, 12/15/32

    705       785,955  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, AMT, Blueridge Transportation Group, 5.00%, 12/31/45

    1,275       1,399,287  

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 8/15/41

    3,080       3,416,398  
   

 

 

 
      50,891,071  
 

 

 

30    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Utah — 1.9%  

Salt Lake City Corp. Airport Revenue, RB, Series A, AMT, 5.00%, 7/01/42

  $ 1,240     $ 1,427,562  

Utah Transit Authority, RB, Series A (AGM),
5.00%, 6/15/18(a)

    5,000       5,121,550  
   

 

 

 
      6,549,112  
Virginia — 0.1%  

County of Fairfax Virginia IDA, Refunding RB, Health Care-Inova Health:

   

5.50%, 5/15/19(a)

    125       133,196  

5.50%, 5/15/35

    225       238,935  
   

 

 

 
      372,131  
Washington — 1.4%  

Port of Seattle Washington, ARB, Intermediate Lien, Series C, AMT, 5.00%, 5/01/42

    715       824,116  

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40

    1,015       1,130,822  

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

   

5.00%, 10/01/39

    525       555,980  

5.25%, 10/01/39

    625       666,756  

Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.00%, 8/15/41(d)

    1,835       1,879,958  
   

 

 

 
      5,057,632  
Wisconsin — 2.0%  

Public Finance Authority, RB, KU Campus Development Corp., Central District Development Project, 5.00%, 3/01/46

    645       724,271  

State of Wisconsin Health & Educational Facilities Authority, RB:

   

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

    1,375       1,471,841  

Marshfield Clinic Health System, Inc. Series C, 4.00%, 2/15/42

    2,810       2,827,225  

State of Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc. Obligated Group, 4.00%, 4/01/39

    1,900       1,955,651  
   

 

 

 
      6,978,988  
   

 

 

 

Total Municipal Bonds — 122.6%

 

    433,864,166  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(e)

 

Arizona — 0.4%  

Phoenix Civic Improvement Corp., Refunding RB, Junior Lien, Series A, 5.00%, 7/01/19(a)

    1,200       1,275,822  
   

 

 

 
California — 2.3%  

Bay Area California Toll Authority, Refunding RB, San Francisco Bay Area, Series D-1, 4.00%, 4/01/47(f)

    3,827       4,031,129  

County of San Diego Water Authority Financing Corp., COP, Refunding, Series A (AGM)(a):

   

5.00%, 5/01/18

    466       475,391  

5.00%, 5/01/18

    2,344       2,390,135  

San Diego Community College District, GO, Election of 2002, 5.25%, 8/01/19(a)

    404       432,670  

University of California, RB, Series O, 5.75%, 5/15/19(a)

    840       899,068  
   

 

 

 
      8,228,393  
Colorado — 2.3%  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A:

   

5.50%, 7/01/34(f)

    900       946,044  

5.00%, 2/01/41

    7,000       7,299,600  
   

 

 

 
      8,245,644  
Security   Par
(000)
    Value  
Connecticut — 0.4%  

State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45

  $ 1,381     $ 1,560,319  
   

 

 

 
District of Columbia — 1.7%  

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

    1,004       1,090,314  

District of Columbia Water & Sewer Authority, Refunding RB, Series A, 6.00%, 10/01/18(a)(f)

    1,779       1,856,871  

Metropolitan Washington Airports Authority, Refunding ARB, Airport System, Series A, AMT, 5.00%, 10/01/30

    2,530       2,870,740  
   

 

 

 
      5,817,925  
Florida — 3.9%  

County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42

    4,480       5,054,829  

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

    4,620       5,036,926  

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 02/01/18(a)

    3,544       3,806,492  
   

 

 

 
      13,898,247  
Illinois — 3.2%  

State of Illinois, RB, Build Illinois, Series B,
5.25%, 6/15/19(a)(f)

    4,399       4,684,742  

State of Illinois Toll Highway Authority, RB:

   

Series A, 5.00%, 1/01/38

    2,138       2,381,389  

Series A, 5.00%, 1/01/40

    2,730       3,102,016  

Series B, 5.00%, 1/01/40

    1,050       1,189,439  
   

 

 

 
      11,357,586  
Kansas — 1.6%  

County of Wyandotte Unified School District No. 500 Kansas City, GO, Improvement, Series A, 5.50%, 9/01/47

    4,723       5,723,768  
   

 

 

 
Maryland — 0.9%  

City of Baltimore Maryland, RB, Water Projects, Series A, 5.00%, 7/01/41

    2,808       3,245,956  
   

 

 

 
Massachusetts — 0.5%  

Commonwealth of Massachusetts, GO, Series A, 5.00%, 3/01/46

    1,461       1,671,956  
   

 

 

 
Michigan — 3.2%  

State of Michigan Finance Authority, RB, Beumont Health Credit Group, Series A, 5.00%, 11/01/44

    1,970       2,195,370  

State of Michigan Finance Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/39

    7,530       8,292,940  

State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45

    870       989,768  
   

 

 

 
      11,478,078  
Nevada — 4.2%  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/19(a)(f)

    3,778       4,029,956  

County of Clark Nevada Water Reclamation District, GO, Series B(a):

   

5.50%, 7/01/19

    4,499       4,817,449  

5.75%, 7/01/19

    1,829       1,966,455  

Las Vegas Valley Water District, GO, Refunding Water Improvement, Series A, 5.00%, 6/01/46

    3,460       4,009,396  
   

 

 

 
      14,823,256  
New Jersey — 0.8%  

County of Hudson New Jersey Improvement Authority, RB, Hudson County Vocational-Techical Schools Project, 5.25%, 5/01/51

    800       922,458  

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36(f)

    1,840       1,956,432  
   

 

 

 
      2,878,890  
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York — 6.5%  

City of New York New York Water & Sewer System, RB, Fiscal 2009, Series A:

   

5.75%, 6/15/18(a)

  $ 290     $ 298,094  

5.75%, 6/15/40

    969       996,840  

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47

    5,680       6,464,608  

Metropolitan Transportation Authority, RB, Sub-Series D-1, 5.25%, 11/15/44

    3,470       4,059,883  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    1,500       1,753,613  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Future Tax, Sub-Series A-3, 5.00%, 8/01/40(f)

    3,059       3,586,106  

New York City Water & Sewer System, RB, 2nd General Resolution, Series DD, 5.00%, 6/15/35

    1,665       1,939,053  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 198th Series, 5.25%, 11/15/56

    2,241       2,631,132  

Triborough Bridge & Tunnel Authority, GRB, Series A-2, 5.25%, 11/15/34(f)

    1,300       1,356,647  
   

 

 

 
      23,085,976  
Ohio — 1.1%  

Northeast Ohio Regional Sewer District, Refunding RB, 4.00%, 11/15/43

    2,912       3,107,685  

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

    580       609,006  
   

 

 

 
      3,716,691  
Pennsylvania — 0.3%  

County of Westmoreland Municipal Authority, Refunding RB (BAM), 5.00%, 8/15/42

    900       1,026,803  
   

 

 

 
South Carolina — 1.5%  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Texas Health Resources System , Series A, 5.00%, 2/15/41

    3,440       3,942,025  

South Carolina Public Service Authority, Refunding RB, Series A(a)(f):

   

5.50%, 1/01/19

    102       106,718  

5.50%, 1/01/19

    1,175       1,233,956  
   

 

 

 
      5,282,699  
Washington — 1.0%  

Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, Series B, 5.00%, 10/01/38

    2,880       3,430,627  
   

 

 

 
Security   Shares/Par
(000)
    Value  
Wisconsin — 1.0%  

Wisconsin Health & Educational Facilities Authority, Refunding RB:

   

Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/19(a)(f)

  $ 1,430     $ 1,510,921  

Froedtert Health, Inc., Series A, 5.00%, 4/01/42

    1,980       2,140,221  
   

 

 

 
      3,651,142  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 36.8%

 

    130,399,778  
   

 

 

 

Total Long-Term Investments — 159.4%
(Cost — $521,863,363)

 

    564,263,944  
   

 

 

 

Short-Term Securities — 1.5%

   

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.74%(g)(h)

    5,203,622       5,205,183  
   

 

 

 

Total Short-Term Securities — 1.5%
(Cost — $5,205,183)

 

    5,205,183  
   

 

 

 

Total Investments — 160.9%
(Cost — $527,068,546)

 

    569,469,127  

Other Assets Less Liabilities — 0.3%

 

    1,195,869  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (21.0)%

 

    (74,518,577

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (40.2)%

 

    (142,264,647
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 353,881,772  
   

 

 

 

 

(a)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)  Zero-coupon bond.
(c)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.
(d)  When-issued security.
(e)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(f)  All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between May 7, 2018 to August 1, 2025 is $15,995,433. See Note 4 of the Notes to Financial Statements for details.
(g)  Annualized 7-day yield as of period end.
 
(h)  During the six months ended October 31, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     1,790,782        3,412,840        5,203,622      $ 5,205,183      $ 11,110      $ 785      $ (217
           

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)  Includes net capital gain distributions, if applicable.

 

 

32    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     (58        12/19/17        $ 7,246        $ 109,380  

Long U.S. Treasury Bond

     (64        12/19/17          9,758          194,620  

Ultra Long U.S. Treasury Bond

     (13        12/19/17          2,142          46,487  

5-Year U.S. Treasury Note

     (28        12/29/17          3,281          31,418  
                 

 

 

 
     $ 381,905  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 381,905      $      $ 381,905  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.  

For the six months ended October 31, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 

 

 

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ (681,361    $      $ (681,361
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                     

Futures contracts

   $      $      $      $      $ 853,033      $      $ 853,033  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 24,293,727  

For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

SCHEDULES OF INVESTMENTS      33  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

 

Long-Term Investments(a)

   $        $ 564,263,944        $             —        $ 564,263,944  

Short-Term Securities

     5,205,183                            5,205,183  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 5,205,183        $ 564,263,944        $        $ 569,469,127  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 381,905        $        $        $ 381,905  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) See above Schedule of Investments for values in each state or political subdivision.  
  (b)  Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.  

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $             —        $ (74,326,061      $             —        $ (74,326,061

VRDP Shares at Liquidation Value

              (142,500,000                 (142,500,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (216,826,061      $        $ (216,826,061
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

34    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   
Alabama — 2.0%  

County of Jefferson Alabama Sewer, Refunding RB:

   

Senior Lien, Series A (AGM), 5.00%, 10/01/44

  $ 570     $ 633,333  

Senior Lien, Series A (AGM), 5.25%, 10/01/48

    1,090       1,223,786  

Sub-Lien, Series D, 6.00%, 10/01/42

    1,000       1,166,680  

Sub-Lien, Series D, 7.00%, 10/01/51

    1,545       1,898,249  
   

 

 

 
      4,922,048  
Arizona — 2.7%  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 7/01/46(a)

    1,230       1,277,232  

Salt Verde Financial Corp., RB, Senior:

   

5.00%, 12/01/32

    2,000       2,417,260  

5.00%, 12/01/37

    2,360       2,875,141  
   

 

 

 
      6,569,633  
California — 11.5%  

California Health Facilities Financing Authority, RB:

   

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

    1,530       1,641,812  

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

    2,200       2,474,230  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33

    875       999,766  

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

   

5.25%, 8/15/39

    105       115,794  

5.25%, 8/15/49

    265       290,231  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 2/01/42

    165       184,262  

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45(a)

    1,025       1,104,294  

California Statewide Communities Development Authority, RB, Series A:

   

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

    1,510       1,603,711  

Loma Linda University Medical Center, 5.00%, 12/01/46(a)

    330       354,156  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 5/15/39

    555       589,549  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38

    255       312,923  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior Series A-1, 5.75%, 6/01/47

    1,650       1,649,950  

Montebello Unified School District, GO, CAB (NPFGC), 0.00%, 8/01/22(b)

    2,405       2,206,804  

San Diego Unified School District California, GO, CAB, Election of 2008, Series A, 0.00%, 7/01/29(b)

    3,475       2,495,189  

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

    8,370       9,008,464  

State of California Public Works Board, LRB, Various Capital Projects:

   

Series I, 5.00%, 11/01/38

    550       631,417  

Sub-Series I-1, 6.38%, 11/01/19(c)

    820       906,248  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 6/01/25

    1,250       1,250,762  
   

 

 

 
      27,819,562  
Colorado — 2.2%  

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

    1,455       1,527,954  

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

    710       772,395  

Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project, 6.00%, 1/15/34

    1,425       1,567,072  

University of Colorado, RB, Series A, 5.38%, 6/01/19(c)

    1,250       1,332,675  
   

 

 

 
      5,200,096  
Security   Par
(000)
    Value  
Delaware — 1.8%  

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

  $ 790     $ 836,626  

Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 6/01/55

    840       945,857  

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

    2,430       2,510,141  
   

 

 

 
      4,292,624  
District of Columbia — 4.8%  

District of Columbia, Refunding RB, Georgetown University:

   

5.00%, 4/01/35

    315       370,283  

Issue, 5.00%, 4/01/42

    365       423,177  

District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 6/01/41

    1,520       1,678,886  

Metropolitan Washington Airports Authority, Refunding ARB, Dulles Toll Road, CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/35(b)

    13,485       7,004,648  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:

   

5.00%, 10/01/39

    505       535,654  

5.25%, 10/01/44

    1,470       1,563,815  
   

 

 

 
      11,576,463  
Florida — 4.7%  

City of Clearwater Florida Water & Sewer Revenue, RB, Series A, 5.25%, 12/01/19(c)

    2,375       2,573,574  

County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/18(c)

    750       778,357  

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 5/01/45

    960       1,068,960  

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

    2,620       2,899,659  

Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(c)

    2,095       2,550,306  

Village Community Development District No.10, Special Assessment Bonds, 5.13%, 5/01/43

    1,420       1,588,526  
   

 

 

 
      11,459,382  
Georgia — 1.5%  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

    370       433,636  

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

    585       628,752  

Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, 3rd Indenture, Series A, 5.00%, 7/01/19(c)

    2,410       2,562,433  
   

 

 

 
      3,624,821  
Hawaii — 0.4%  

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

    945       1,024,522  
   

 

 

 
Idaho — 0.3%  

Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series A, 5.00%, 12/01/46

    540       612,106  
   

 

 

 
Illinois — 15.8%  

City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/34

    1,220       1,263,932  

City of Chicago Illinois, GO, Refunding, Project, Series A:

   

5.25%, 1/01/32

    2,195       2,329,905  

5.00%, 1/01/35

    2,000       2,101,500  

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

    885       889,912  
 

 

 

SCHEDULES OF INVESTMENTS      35  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien:

   

Series A, 5.75%, 1/01/21(c)

  $ 1,680     $ 1,909,841  

Series A, 5.75%, 1/01/39

    320       359,853  

Series C, 6.50%, 1/01/21(c)

    4,055       4,703,678  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

    730       783,334  

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42

    1,000       1,063,980  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

    560       598,998  

Illinois Finance Authority, Refunding RB:

   

Central Dupage Health, Series B, 5.50%, 11/01/39

    1,115       1,201,647  

Presence Health Network, Series C, 4.00%, 2/15/41

    1,035       1,049,386  

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

   

CAB, Series B (AGM), 0.00%, 6/15/47(b)

    13,220       3,727,776  

Series B (AGM), 5.00%, 6/15/50

    3,070       3,252,911  

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

    1,740       1,748,804  

Railsplitter Tobacco Settlement Authority, RB:

   

5.50%, 6/01/23

    315       356,287  

6.00%, 6/01/28

    800       901,456  

State of Illinois, GO:

   

5.00%, 2/01/39

    1,100       1,144,165  

Series A, 5.00%, 4/01/38

    2,625       2,730,814  

State of Illinois, RB, Build Illinois, Series B,
5.25%, 6/15/19(c)

    440       468,930  

State of Illinois Toll Highway Authority, RB:

   

Senior, Series C, 5.00%, 1/01/36

    1,870       2,126,190  

Senior, Series C, 5.00%, 1/01/37

    2,000       2,271,240  

Series A, 5.00%, 1/01/38

    415       462,613  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 4/01/44

    705       770,339  
   

 

 

 
      38,217,491  
Indiana — 4.3%  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

   

6.75%, 1/01/34

    560       663,158  

7.00%, 1/01/44

    1,355       1,612,504  

Indiana Finance Authority, RB, Series A:

   

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

    2,275       2,575,823  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

    310       333,690  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48

    1,030       1,105,427  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 1/01/51

    290       314,151  

Sisters of St. Francis Health Services, 5.25%, 11/01/39

    585       627,179  

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A:

   

5.75%, 5/01/19(c)

    1,065       1,135,375  

5.75%, 5/01/31

    235       249,467  

Indiana Municipal Power Agency, RB, Series B,
6.00%, 1/01/19(c)

    775       819,159  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 1/15/40

    880       992,165  
   

 

 

 
      10,428,098  
Iowa — 1.8%  

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:

   

5.00%, 12/01/19

    330       341,992  

5.50%, 12/01/22

    1,630       1,669,104  

5.25%, 12/01/25

    320       341,033  

5.88%, 12/01/26(a)

    285       302,536  
Security   Par
(000)
    Value  
Iowa (continued)  

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

  $ 655     $ 692,571  

Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 6/01/46

    980       984,165  
   

 

 

 
      4,331,401  
Kansas — 0.7%  

Kansas Development Finance Authority, Refunding RB, Adventist Health, Series C, 5.75%, 11/15/38

    1,520       1,651,860  
   

 

 

 
Kentucky — 0.6%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

    705       757,275  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43(d)

    865       755,794  
   

 

 

 
      1,513,069  
Louisiana — 3.4%  

East Baton Rouge Sewerage Commission, RB, Series A, 5.25%, 2/01/19(c)

    570       599,064  

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

    3,500       3,500,000  

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

    430       455,211  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

   

5.50%, 5/15/30

    700       756,847  

5.25%, 5/15/31

    600       651,474  

5.25%, 5/15/32

    765       837,820  

5.25%, 5/15/33

    830       901,305  

5.25%, 5/15/35

    350       380,762  
   

 

 

 
      8,082,483  
Maine — 0.1%  

Maine Health & Higher Educational Facilities Authority, RB, Series A:

   

5.00%, 7/01/19(c)

    65       69,056  

5.00%, 7/01/39

    145       151,934  
   

 

 

 
      220,990  
Maryland — 1.2%  

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

    300       319,716  

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

    530       559,791  

Maryland Health & Higher Educational Facilities Authority, RB, Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    305       349,500  

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/21(c)

    1,520       1,751,420  
   

 

 

 
      2,980,427  
Massachusetts — 2.0%  

Commonwealth of Massachusetts, GO, Series E, 3.00%, 4/01/44

    1,860       1,679,617  

Massachusetts Development Finance Agency, Refunding RB:

   

Boston University, Series P, 5.45%, 5/15/59

    1,165       1,401,845  

Covanta Energy Project, Series C, AMT,
5.25%, 11/01/42(a)

    1,575       1,576,055  

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

    255       268,204  
   

 

 

 
      4,925,721  
 

 

 

36    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Michigan — 3.5%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39

  $ 3,085     $ 3,420,309  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:

   

5.50%, 5/15/20(c)

    530       585,215  

5.50%, 5/15/36

    425       461,023  

Michigan Finance Authority, Refunding RB:

   

Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

    630       685,295  

Henry Ford Health System, 4.00%, 11/15/46

    1,040       1,061,382  

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.75%, 11/15/19(c)

    2,105       2,298,408  
   

 

 

 
      8,511,632  
Minnesota — 0.9%  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A, 6.75%, 11/15/18(c)

    2,135       2,259,385  
   

 

 

 
Mississippi — 0.3%  

University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/19(c)

    675       726,374  
   

 

 

 
Missouri — 0.2%  

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

    175       198,925  

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43

    175       191,084  
   

 

 

 
      390,009  
Nebraska — 1.0%  

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37

    575       635,202  

County of Sarpy Nebraska Hospital Authority No. 1, Refunding RB, Nebraska Medicine, 4.00%, 5/15/51

    1,755       1,810,160  
   

 

 

 
      2,445,362  
New Hampshire — 1.4%  

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

    3,035       3,284,720  
   

 

 

 
New Jersey — 6.7%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    735       770,471  

5.25%, 11/01/44

    1,095       1,142,490  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45(a)

    775       778,759  

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

   

5.13%, 9/15/23

    1,410       1,552,368  

5.25%, 9/15/29

    1,365       1,494,497  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31

    1,550       1,740,960  

New Jersey State Turnpike Authority, RB:

   

Series A, 5.00%, 1/01/43

    1,925       2,148,127  

Series E, 5.00%, 1/01/45

    1,875       2,111,194  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.00%, 6/15/44

    315       334,464  

Transportation Program, Series AA, 5.00%, 6/15/44

    580       611,291  

Transportation System, Series A, 5.50%, 6/15/41

    1,575       1,693,912  

Transportation System, Series B, 5.25%, 6/15/36

    1,705       1,812,705  
   

 

 

 
      16,191,238  
New York — 7.5%  

City of New York New York Transitional Finance Authority Future Tax Secured, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42

    310       346,338  
Security   Par
(000)
    Value  
New York (continued)  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A,
6.25%, 6/01/41(a)

  $ 1,300     $ 1,345,175  

County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 8/01/46

    1,800       1,482,624  

County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44

    233       251,218  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45

    1,405       1,378,136  

Hudson Yards Infrastructure Corp., Refunding RB, Series A, 5.00%, 2/15/39

    680       794,288  

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

    1,450       1,531,881  

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38

    1,715       1,999,999  

Metropolitan Transportation Authority, Refunding RB, Dedicated Tax Fund, Series B, 5.00%, 11/15/19(c)

    1,740       1,874,798  

Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56

    765       858,766  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

    850       913,869  

3 World Trade Center Project, Class 1,
5.00%, 11/15/44(a)

    2,275       2,472,857  

3 World Trade Center Project, Class 2,
5.15%, 11/15/34(a)

    245       270,820  

3 World Trade Center Project, Class 2,
5.38%, 11/15/40(a)

    605       673,202  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:

   

6.00%, 12/01/36

    900       1,002,294  

6.00%, 12/01/42

    875       970,042  
   

 

 

 
      18,166,307  
North Carolina — 0.6%  

North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/19(c)

    970       1,028,472  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41

    415       457,869  
   

 

 

 
      1,486,341  
Ohio — 1.6%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2,
5.88%, 6/01/47

    2,570       2,406,059  

County of Franklin Ohio, RB:

   

Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40

    470       521,357  

Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    290       328,724  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 6/30/53

    580       637,994  
   

 

 

 
      3,894,134  
Pennsylvania — 3.1%  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/42

    460       505,945  

Pennsylvania Economic Development Financing Authority, RB:

   

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

    2,520       2,684,304  
 

 

 

SCHEDULES OF INVESTMENTS      37  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Pennsylvania (continued)  

Pennsylvania Economic Development Financing Authority, RB (continued):

   

Pennsylvania Rapid Bridge Replacement Project, AMT, 5.00%, 6/30/42

  $ 2,015     $ 2,234,293  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

    1,105       1,170,703  

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

    795       900,067  
   

 

 

 
      7,495,312  
Puerto Rico — 1.1%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 5/15/39

    1,345       1,320,010  

5.63%, 5/15/43

    1,280       1,254,093  
   

 

 

 
      2,574,103  
Rhode Island — 2.2%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 6/01/35

    580       625,054  

Series B, 4.50%, 6/01/45

    1,900       1,903,572  

Series B, 5.00%, 6/01/50

    2,605       2,687,787  
   

 

 

 
      5,216,413  
South Carolina — 3.6%  

State of South Carolina Ports Authority, ARB:

   

5.25%, 7/01/40

    2,285       2,474,792  

AMT, 5.25%, 7/01/55

    925       1,032,948  

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

    2,385       2,691,520  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

    2,260       2,551,472  
   

 

 

 
      8,750,732  
Tennessee — 0.7%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

    980       1,052,667  

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 7/01/40

    495       556,355  
   

 

 

 
      1,609,022  
Texas — 5.6%  

Central Texas Regional Mobility Authority, Refunding RB:

   

Senior Lien, 6.25%, 1/01/21(c)

    1,480       1,707,831  

Sub-Lien, 5.00%, 1/01/33

    250       276,138  

City of Austin Texas Airport System, ARB, AMT, 5.00%, 11/15/39

    440       491,300  

City of Austin Texas Electric Utility Revenue, Refunding RB, Series A, 5.00%, 11/15/37

    1,500       1,675,650  

City of Dallas Texas Waterworks & Sewer System Revenue, Refunding RB, 5.00%, 10/01/20(c)

    485       535,411  

City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39

    1,070       1,100,827  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/23(c)

    325       410,904  

County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18(c)

    1,910       2,035,162  

La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 8/15/19(c)

    450       490,180  

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 9/01/31(b)(c)

    1,400       620,172  
Security   Par
(000)
    Value  
Texas (continued)  

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

   

LBJ Infrastructure Group LLC, 7.00%, 6/30/40

  $ 2,000     $ 2,257,260  

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

    1,700       1,885,300  
   

 

 

 
      13,486,135  
Utah — 0.3%  

Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 7/01/47

    665       762,010  
   

 

 

 
Virginia — 1.8%  

County of Hanover Virginia EDA, Refunding RB, Covenant Woods, Series A:

   

5.00%, 7/01/42

    625       647,281  

Residential Care Facility, 5.00%, 7/01/47

    970       1,002,088  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 1/01/32

    550       606,738  

6.00%, 1/01/37

    1,830       2,068,906  
   

 

 

 
      4,325,013  
Washington — 3.7%  

Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/17(c)

    1,340       1,340,000  

Grant County Public Utility District No. 2, Refunding RB, Series A, 5.00%, 1/01/43

    1,555       1,759,405  

Port of Seattle Washington, ARB, Intermediate Lien, Series C, AMT, 5.00%, 5/01/42

    1,085       1,250,582  

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40

    540       601,619  

State of Washington, GO, Series D, 5.00%, 2/01/42

    1,890       2,196,501  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45

    1,625       1,792,229  
   

 

 

 
      8,940,336  
Wisconsin — 3.5%  

State of Wisconsin, Refunding RB, Series A,
6.00%, 5/01/19(c)

    4,980       5,339,058  

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

    1,710       1,830,435  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Medical College of Wisconsin, Inc., 4.00%, 12/01/46

    1,305       1,344,816  
   

 

 

 
      8,514,309  
Wyoming — 0.1%  

Wyoming Municipal Power Agency, Inc., RB, Series A, 5.00%, 1/01/19(c)

    210       219,419  
   

 

 

 

Total Municipal Bonds — 111.2%

 

    268,701,103  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(e)

 

Alabama — 0.5%  

Auburn University, Refunding RB, Series A, 4.00%, 6/01/41

    1,220       1,281,476  
   

 

 

 
California — 9.0%            

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area:

   

Series F-1, 5.63%, 4/01/44(c)

    2,271       2,416,091  

Toll Bridge Subordinate, 4.00%, 4/01/42(f)

    2,257       2,388,936  

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/18(c)(f)

    1,845       1,914,661  

City & County of San Francisco California Public Utilities Commission Water Revenue, RB, Series B, 5.00%, 11/01/19(c)

    6,600       7,105,802  
 

 

 

38    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
California (continued)            

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

  $ 4,121     $ 4,471,320  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No.2 Bonds, 5.00%, 10/01/47

    2,250       2,596,639  

San Diego Community College District, GO, Election of 2002, 5.25%, 8/01/19(c)

    748       801,241  
   

 

 

 
      21,694,690  
Colorado — 3.6%            

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

   

Series C-3 (AGM), 5.10%, 4/29/18

    2,580       2,630,723  

Series C-7 (AGM), 5.00%, 5/01/18

    1,650       1,681,928  

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

    1,490       1,566,228  

County of Adams Colorado, COP, Refunding, 4.00%, 12/01/45

    2,700       2,806,866  
   

 

 

 
      8,685,745  
Florida — 1.8%            

County of Miami-Dade Florida Water & Sewer System Revenue, RB, 5.00%, 10/01/34

    3,939       4,308,481  
   

 

 

 
Georgia — 1.0%            

Private Colleges & Universities Authority, Refunding RB, Emory University, Series C, 5.00%, 9/01/18(c)

    2,259       2,331,315  
   

 

 

 
Massachusetts — 2.1%            

Massachusetts School Building Authority, RB, Series B, 5.00%, 10/15/41

    4,502       5,047,761  
   

 

 

 
New Hampshire — 0.6%            

New Hampshire Health and Education Facilities Authority Act, RB, Doartmouth College Issue, 5.25%, 6/01/19(c)(f)

    1,410       1,498,301  
   

 

 

 
New York — 9.1%            

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series FF-2, 5.50%, 6/15/40

    1,110       1,185,698  

Hudson Yards Infrastructure Corp., RB, Series A,
5.75%, 2/15/47(f)

    1,110       1,261,212  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    3,240       3,787,804  

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

    7,440       8,387,028  

New York Liberty Development Corp., Refunding RB, World Trade Center Project, 5.75%, 11/15/51(f)

    4,460       5,129,064  

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

    1,860       2,153,663  
   

 

 

 
      21,904,469  
North Carolina — 1.3%            

North Carolina Capital Facilities Finance Agency, Refunding RB:

   

Duke University, Series B, 5.00%, 10/01/55

    1,830       2,082,412  

Wake Forest University, 5.00%, 1/01/19(c)

    1,080       1,127,833  
   

 

 

 
      3,210,245  
Ohio — 4.2%            

State of Ohio, Refunding RB, Cleveland Clinic Health, Series A, 5.50%, 1/01/19(c)

    9,644       10,120,942  
   

 

 

 
Pennsylvania — 0.8%            

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    1,695       1,992,388  
   

 

 

 
Security   Shares/Par
(000)
    Value  
Texas — 6.1%            

City of San Antonio Texas Electric & Gas Systems Revenue, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43

  $ 1,720     $ 1,938,883  

County of Harris Metropolitan Transit Authority, RB, Series A, 5.00%, 11/01/41

    2,350       2,621,754  

County of Harris Texas, RB, Senior Lien Toll Road, Series A(f):

   

5.00%, 8/15/19(c)

    2,620       2,778,017  

5.00%, 8/15/38

    2,004       2,124,943  

University of Texas System, Refunding RB, Financing System, Series B, 5.00%, 8/15/43

    2,041       2,319,023  

University of Texas, Permanent University Fund, Refunding RB, Series B, 4.00%, 7/01/41

    2,720       2,904,661  
   

 

 

 
      14,687,281  
Utah — 1.1%            

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

    2,519       2,653,843  
   

 

 

 
Virginia — 2.5%            

University of Virginia, Refunding RB, General, 5.00%, 6/01/18(c)

    3,749       3,830,530  

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

    2,095       2,242,721  
   

 

 

 
      6,073,251  
Wisconsin — 1.7%            

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/19(c)(f)

    3,959       4,184,089  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 45.4%

 

    109,674,277  
   

 

 

 

Total Long-Term Investments — 156.6%
(Cost — $348,801,863)

 

    378,375,380  
   

 

 

 

Short-Term Securities — 2.4%

   

BlackRock Liquidity Funds, MuniCash, Institutional Class,
0.74%(g)(h)

    5,852,278       5,854,033  
   

 

 

 

Total Short-Term Securities — 2.4%
(Cost — $5,854,033)

 

    5,854,033  
   

 

 

 

Total Investments — 159.0%
(Cost — $354,655,896)

 

    384,229,413  

Other Assets Less Liabilities — 1.8%

 

    4,381,014  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (26.2)%

 

    (63,281,688

VMTP Shares, at Liquidation Value — (34.6)%

 

    (83,700,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 241,628,739  
   

 

 

 

 

(a)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)  Zero-coupon bond.
(c)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(d)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.
(e)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(f)  All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between May 7, 2018 to February 15, 2031, is $13,416,511. See Note 4 of the Notes to Financial Statements for details.
(g)  Annualized 7-day yield as of period end.
 

 

 

SCHEDULES OF INVESTMENTS      39  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(h)  During the six months ended October 31, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     575,572        5,276,706        5,852,278      $ 5,854,033      $ 14,769      $ 472      $ (57
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes net capital gains distributions, if applicable.  

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     (30        12/19/17        $ 3,748        $ 59,018  

Long U.S. Treasury Bond

     (39        12/19/17          5,946          121,546  

Ultra Long U.S. Treasury Bond

     (20        12/19/17          3,296          71,858  

5-Year U.S. Treasury Note

     (43        12/29/17          5,039          45,680  
                 

 

 

 
     $ 298,102  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 298,102      $      $ 298,102  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.  

For the six months ended October 31, 2017, the effect of derivative financial instruments in the Statements of Operation was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ (439,239    $      $ (439,239
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 536,468      $      $ 536,468  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 16,674,801  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

40    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 378,375,380        $             —        $ 378,375,380  

Short-Term Securities

     5,854,033                            5,854,033  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 5,854,033        $ 378,375,380        $        $ 384,229,413  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 298,102        $        $        $ 298,102  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each state or political subdivision.  
  (b)  Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.  

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $             —        $ (63,115,775      $             —        $ (63,115,775

VMTP Shares at Liquidation Value

              (83,700,000                 (83,700,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (146,815,775      $        $ (146,815,775
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      41  


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   
Alabama — 1.2%        

County of Jefferson Alabama Sewer, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42

  $ 1,875     $ 2,187,525  
   

 

 

 
Arizona — 1.1%  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 7/01/46(a)

    890       924,176  

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

    810       986,807  
   

 

 

 
      1,910,983  
California — 14.1%  

Benicia Unified School District, GO, CAB, Series A (NPFGC), 0.00%, 8/01/20(b)

    2,000       1,923,740  

California Health Facilities Financing Authority, RB:

   

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

    1,110       1,191,119  

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

    1,585       1,782,570  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33

    445       508,453  

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

   

5.25%, 8/15/39

    80       88,224  

5.25%, 8/15/49

    195       213,566  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 2/01/42

    120       134,009  

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45(a)

    730       786,473  

California Statewide Communities Development Authority, RB, Series A:

   

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

    1,090       1,157,645  

Loma Linda University Medical Center, 5.00%, 12/01/46(a)

    235       252,202  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 5/15/39

    400       424,900  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38

    185       227,023  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior Series A-1, 5.75%, 6/01/47

    1,190       1,189,964  

San Diego Unified School District California, GO, CAB, Election of 2008, Series A, 0.00%, 7/01/29(b)

    2,525       1,813,051  

San Marino Unified School District, GO, Series A (NPFGC), 0.00%, 7/01/19(b)

    2,070       2,028,869  

State of California, GO, Various Purposes:

   

6.00%, 3/01/33

    1,265       1,408,148  

6.50%, 4/01/33

    7,325       7,883,751  

State of California Public Works Board, LRB, Various Capital Projects:

   

Series I, 5.00%, 11/01/38

    405       464,952  

Sub-Series I-1, 6.38%, 11/01/19(c)

    600       663,108  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 6/01/25

    935       935,570  
   

 

 

 
      25,077,337  
Colorado — 1.5%  

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

    1,055       1,107,897  

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

    510       554,819  

University of Colorado, RB, Series A, 5.38%, 6/01/19(c)

    920       980,849  
   

 

 

 
      2,643,565  
Security   Par
(000)
    Value  
Delaware — 1.9%  

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

  $ 570     $ 603,641  

Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 6/01/55

    605       681,242  

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

    2,050       2,117,609  
   

 

 

 
      3,402,492  
District of Columbia — 4.2%  

District of Columbia, Refunding RB, Georgetown University:

   

5.00%, 4/01/35

    230       270,365  

Issue, 5.00%, 4/01/42

    265       307,238  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road:

   

1st Senior Lien, Series A, 5.00%, 10/01/39

    255       270,478  

1st Senior Lien, Series A, 5.25%, 10/01/44

    1,000       1,063,820  

CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/34(b)

    10,170       5,525,158  
   

 

 

 
      7,437,059  
Florida — 3.6%  

City of Clearwater Florida Water & Sewer Revenue, RB, Series A, 5.25%, 12/01/19(c)

    1,725       1,869,227  

County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/18(c)

    545       565,607  

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 5/01/45

    700       779,450  

Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(c)

    1,525       1,856,428  

Village Community Development District No.10, Special Assessment Bonds, 5.13%, 5/01/43(d)

    1,140       1,275,295  
   

 

 

 
      6,346,007  
Georgia — 0.9%  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

    270       316,437  

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

    420       451,412  

Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, 3rd Indenture, Series A,
5.00%, 7/01/19(c)

    740       786,805  
   

 

 

 
      1,554,654  
Hawaii — 0.4%  

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

    680       737,222  
   

 

 

 
Idaho — 1.4%  

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

    2,000       2,008,200  

Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series A, 5.00%, 12/01/46

    390       442,077  
   

 

 

 
      2,450,277  
Illinois — 16.8%  

City of Chicago Illinois, GO, Project, Series A,
5.00%, 1/01/34

    885       916,869  

City of Chicago Illinois, GO, Refunding, Project, Series A,
5.25%, 1/01/32

    2,290       2,430,743  

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

    590       593,275  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien:

   

Series A, 5.75%, 1/01/21(c)

    2,100       2,387,301  

Series A, 5.75%, 1/01/39

    400       449,816  

Series C, 6.50%, 1/01/21(c)

    2,935       3,404,512  
 

 

 

42    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

  $ 530     $ 568,722  

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42

    1,845       1,963,043  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

    410       438,552  

Illinois Finance Authority, Refunding RB:

   

Central Dupage Health, Series B, 5.50%, 11/01/39

    800       862,168  

Presence Health Network, Series C, 4.00%, 2/15/41

    745       755,356  

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

   

CAB, Series B (AGM), 0.00%, 6/15/47(b)

    9,555       2,694,319  

Series B (AGM), 5.00%, 6/15/50

    2,230       2,362,863  

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

    1,260       1,266,376  

Railsplitter Tobacco Settlement Authority, RB:

   

5.50%, 6/01/23

    230       260,146  

6.00%, 6/01/28

    500       563,410  

State of Illinois, GO:

   

5.00%, 2/01/39

    810       842,521  

Series A, 5.00%, 4/01/38

    1,920       1,997,395  

State of Illinois, RB, Build Illinois, Series B,
5.25%, 6/15/19(c)

    315       335,711  

State of Illinois Toll Highway Authority, RB:

   

Senior, Series C, 5.00%, 1/01/36

    1,355       1,540,635  

Senior, Series C, 5.00%, 1/01/37

    1,450       1,646,649  

Series A, 5.00%, 1/01/38

    915       1,019,978  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 4/01/44

    520       568,194  
   

 

 

 
      29,868,554  
Indiana — 4.7%  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

   

6.75%, 1/01/34

    415       491,447  

7.00%, 1/01/44

    1,000       1,190,040  

Indiana Finance Authority, RB, Series A:

   

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

    1,660       1,879,502  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

    225       242,194  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48

    740       794,190  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 1/01/51

    210       227,489  

Sisters of St. Francis Health Services, 5.25%, 11/01/39

    420       450,282  

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A:

   

5.75%, 5/01/19(c)

    1,360       1,449,869  

5.75%, 5/01/31

    300       318,468  

Indiana Municipal Power Agency, RB, Series B,
6.00%, 1/01/19(c)

    565       597,194  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 1/15/40

    640       721,574  
   

 

 

 
      8,362,249  
Iowa — 1.2%  

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:

   

5.00%, 12/01/19

    240       248,722  

5.25%, 12/01/25

    940       1,001,786  

5.88%, 12/01/26(a)

    210       222,921  

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

    580       613,269  
   

 

 

 
      2,086,698  
Security   Par
(000)
    Value  
Kansas — 0.7%  

Kansas Development Finance Authority, Refunding RB, Adventist Health, Series C, 5.75%, 11/15/38

  $ 1,105     $ 1,200,859  
   

 

 

 
Kentucky — 0.6%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

    520       558,558  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C,
0.00%, 7/01/43(e)

    635       554,831  
   

 

 

 
      1,113,389  
Louisiana — 3.3%  

East Baton Rouge Sewerage Commission, RB, Series A, 5.25%, 2/01/19(c)

    420       441,416  

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

    2,500       2,500,000  

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

    310       328,175  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

   

5.50%, 5/15/30

    510       551,417  

5.25%, 5/15/31

    435       472,319  

5.25%, 5/15/32

    555       607,830  

5.25%, 5/15/33

    600       651,546  

5.25%, 5/15/35

    255       277,412  
   

 

 

 
      5,830,115  
Maine — 0.1%  

Maine Health & Higher Educational Facilities Authority, RB, Series A:

   

5.00%, 7/01/19(c)

    45       47,808  

5.00%, 7/01/39

    105       110,021  
   

 

 

 
      157,829  
Maryland — 1.2%  

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

    220       234,458  

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

    390       411,922  

Maryland Health & Higher Educational Facilities Authority, RB, Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    220       252,098  

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/21(c)

    1,095       1,261,714  
   

 

 

 
      2,160,192  
Massachusetts — 2.6%  

Commonwealth of Massachusetts, GO, Series E, 3.00%, 4/01/44

    1,365       1,232,622  

Massachusetts Development Finance Agency, Refunding RB:

   

Boston University, Series P, 5.45%, 5/15/59

    845       1,016,788  

Covanta Energy Project, Series C, AMT,
5.25%, 11/01/42(a)

    1,155       1,155,774  

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

    360       378,641  

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

    825       842,416  
   

 

 

 
      4,626,241  
Michigan — 3.5%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39

    2,235       2,477,922  
 

 

 

SCHEDULES OF INVESTMENTS      43  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Michigan (continued)  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:

   

5.50%, 5/15/20(c)

  $ 380     $ 419,588  

5.50%, 5/15/36

    310       336,276  

Michigan Finance Authority, Refunding RB:

   

Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

    455       494,935  

Henry Ford Health System, 4.00%, 11/15/46

    750       765,420  

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.75%, 11/15/19(c)

    1,520       1,659,658  
   

 

 

 
      6,153,799  
Minnesota — 0.9%  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A, 6.75%, 11/15/18(c)

    1,540       1,629,720  
   

 

 

 
Missouri — 0.2%  

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

    125       142,089  

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43

    130       141,948  
   

 

 

 
      284,037  
Nebraska — 1.1%  

County of Sarpy Nebraska Hospital Authority No. 1, Refunding RB, Nebraska Medicine, 4.00%, 5/15/51

    1,835       1,892,674  
   

 

 

 
New Hampshire — 0.9%  

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

    1,530       1,655,888  
   

 

 

 
New Jersey — 5.7%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    530       555,578  

5.25%, 11/01/44

    790       824,262  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45(a)

    560       562,716  

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

   

5.13%, 9/15/23

    1,040       1,145,009  

5.25%, 9/15/29

    990       1,083,921  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31

    1,125       1,263,600  

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 1/01/45

    1,355       1,525,689  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.00%, 6/15/44

    225       238,903  

Transportation Program, Series AA, 5.00%, 6/15/44

    420       442,659  

Transportation System, Series A, 5.50%, 6/15/41

    1,025       1,102,388  

Transportation System, Series B, 5.25%, 6/15/36

    1,235       1,313,015  
   

 

 

 
      10,057,740  
New York — 7.8%  

City of New York New York Transitional Finance Authority Future Tax Secured, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42

    740       826,743  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A,
6.25%, 6/01/41(a)

    1,000       1,034,750  

County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 8/01/46

    1,355       1,116,086  

County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44(d)

    262       281,979  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45

    1,020       1,000,498  
Security   Par
(000)
    Value  
New York (continued)  

Hudson Yards Infrastructure Corp., Refunding RB, Series A, 5.00%, 2/15/39

  $ 490     $ 572,354  

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

    1,050       1,109,294  

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38

    1,255       1,463,556  

Metropolitan Transportation Authority, Refunding RB, Dedicated Tax Fund, Series B, 5.00%, 11/15/19(c)

    1,270       1,368,387  

Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56

    555       623,026  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

    615       661,211  

3 World Trade Center Project, Class 1,
5.00%, 11/15/44(a)

    1,495       1,625,020  

3 World Trade Center Project, Class 2,
5.15%, 11/15/34(a)

    175       193,443  

3 World Trade Center Project, Class 2,
5.38%, 11/15/40(a)

    440       489,601  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:

   

6.00%, 12/01/36

    650       723,879  

6.00%, 12/01/42

    630       698,431  
   

 

 

 
      13,788,258  
North Carolina — 0.2%  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41

    305       336,507  
   

 

 

 
Ohio — 1.6%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.88%, 6/01/47

    1,855       1,736,670  

County of Franklin Ohio, RB:

   

Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40

    350       388,244  

Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    210       238,041  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 6/30/53

    420       461,996  
   

 

 

 
      2,824,951  
Pennsylvania — 2.4%  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/42

    335       368,460  

Pennsylvania Economic Development Financing Authority, RB:

   

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

    1,830       1,949,316  

Pennsylvania Rapid Bridge Replacement Project, AMT, 5.00%, 6/30/42

    440       487,885  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

    800       847,568  

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

    585       662,314  
   

 

 

 
      4,315,543  
Puerto Rico — 1.0%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 5/15/39

    975       956,885  

5.63%, 5/15/43

    925       906,278  
   

 

 

 
      1,863,163  
 

 

 

44    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Rhode Island — 2.1%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 6/01/35

  $ 420     $ 452,626  

Series B, 4.50%, 6/01/45

    1,375       1,377,585  

Series B, 5.00%, 6/01/50

    1,895       1,955,223  
   

 

 

 
      3,785,434  
South Carolina — 3.8%  

State of South Carolina Ports Authority, ARB:

   

5.25%, 7/01/40

    1,650       1,787,049  

AMT, 5.25%, 7/01/55

    670       748,189  

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

    2,040       2,302,181  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

    1,635       1,845,866  
   

 

 

 
      6,683,285  
Tennessee — 0.7%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

    720       773,388  

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 7/01/40

    360       404,622  
   

 

 

 
      1,178,010  
Texas — 5.2%  

Central Texas Regional Mobility Authority, Refunding RB:

   

Senior Lien, 6.25%, 1/01/21(c)

    1,070       1,234,716  

Sub-Lien, 5.00%, 1/01/33

    180       198,819  

City of Austin Texas Airport System, ARB, AMT, 5.00%, 11/15/39

    320       357,309  

City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39

    535       550,413  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/23(c)

    240       303,437  

County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18(c)

    1,380       1,470,431  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project,
Series A(b):

   

0.00%, 9/15/40

    2,525       937,760  

0.00%, 9/15/41

    1,395       491,305  

La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 8/15/19(c)

    320       348,573  

New Hope Cultural Education Facilities Corp., RB, Collegiate Housing Tarleton State University Project,
5.00%, 4/01/35

    145       155,855  

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 9/01/31(b)(c)

    1,015       449,624  

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

   

LBJ Infrastructure Group LLC, 7.00%, 6/30/40

    1,165       1,314,854  

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

    1,300       1,441,700  
   

 

 

 
      9,254,796  
Utah — 0.3%  

Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 7/01/47

    485       555,752  
   

 

 

 
Virginia — 1.1%  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 1/01/32

    400       441,264  
Security   Par
(000)
    Value  
Virginia (continued)  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT (continued):

   

6.00%, 1/01/37

  $ 1,345     $ 1,520,590  
   

 

 

 
      1,961,854  
Washington — 3.9%  

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

    1,355       1,355,000  

Grant County Public Utility District No. 2, Refunding RB, Series A, 5.00%, 1/01/43

    1,125       1,272,881  

Port of Seattle Washington, ARB, Intermediate Lien, Series C, AMT, 5.00%, 5/01/42

    785       904,799  

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40

    390       434,503  

State of Washington, GO, Series D, 5.00%, 2/01/42

    1,365       1,586,362  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45

    1,195       1,317,977  
   

 

 

 
      6,871,522  
Wisconsin — 3.5%  

State of Wisconsin, Refunding RB, Series A,
6.00%, 5/01/19(c)

    3,620       3,881,002  

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

    1,235       1,321,981  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Medical College of Wisconsin, Inc., 4.00%, 12/01/46

    945       973,832  
   

 

 

 
      6,176,815  
   

 

 

 

Total Municipal Bonds — 107.4%

 

    190,422,995  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(f)

 

Alabama — 0.5%  

Auburn University, Refunding RB, Series A, 4.00%, 6/01/41

    880       924,343  
   

 

 

 
California — 8.9%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area:

   

Toll Bridge Subordinate, 4.00%, 4/01/42(g)

    1,638       1,733,564  

Series F-1, 5.63%, 4/01/19(c)

    1,641       1,745,546  

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/18(c)(g)

    1,335       1,385,405  

City & County of San Francisco California Public Utilities Commission Water Revenue, RB, Series B,
5.00%, 11/01/19(c)

    4,770       5,135,557  

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

    2,967       3,219,351  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    1,635       1,886,891  

San Diego Community College District, GO, Election of 2002, 5.25%, 8/01/19(c)

    553       592,918  
   

 

 

 
      15,699,232  
Colorado — 3.6%  

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

   

Series C-3 (AGM), 5.10%, 4/29/18

    1,870       1,906,764  

Series C-7 (AGM), 5.00%, 5/01/18

    1,200       1,223,220  

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

    1,080       1,135,253  
 

 

 

SCHEDULES OF INVESTMENTS      45  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Colorado (continued)  

County of Adams Colorado, COP, Refundig, 4.00%, 12/01/45

  $ 1,950     $ 2,027,181  
   

 

 

 
      6,292,418  
Florida — 1.8%  

County of Miami-Dade Florida Water & Sewer System Revenue, RB, 5.00%, 10/01/34

    2,840       3,105,605  
   

 

 

 
Georgia — 1.0%  

Private Colleges & Universities Authority, Refunding RB, Emory University, Series-C, 5.00%, 9/01/18(c)

    1,649       1,702,067  
   

 

 

 
Massachusetts — 2.0%  

Massachusetts School Building Authority, RB, Series B, 5.00%, 10/15/41

    3,211       3,600,736  
   

 

 

 
New Hampshire — 0.6%  

New Hampshire Health and Education Facilities Authority Act, RB, Doartmouth College Issue, 5.25%, 6/01/19(c)(g)

    1,020       1,083,877  
   

 

 

 
New York — 10.9%  

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

    3,299       3,457,450  

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series FF-2, 5.50%, 6/15/40

    810       865,239  

Hudson Yards Infrastructure Corp., RB, Series A,
5.75%, 2/15/47(g)

    810       920,344  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    2,340       2,735,636  

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds,
5.25%, 12/15/43

    5,400       6,087,359  

New York Liberty Development Corp., Refunding RB, World Trade Center Project, 5.75%, 11/15/51(g)

    3,250       3,737,547  

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

    1,350       1,563,143  
   

 

 

 
      19,366,718  
North Carolina — 1.3%  

North Carolina Capital Facilities Finance Agency, Refunding RB:

   

Duke University, Series B, 5.00%, 10/01/55

    1,320       1,502,068  

Wake Forest University, 5.00%, 1/01/19(c)

    800       835,432  
   

 

 

 
      2,337,500  
Ohio — 4.1%  

State of Ohio, Refunding RB, Cleveland Clinic Health, Series A, 5.50%, 1/01/19(c)

    6,974       7,319,188  
   

 

 

 
Pennsylvania — 0.8%  

Pennsylvania Turnpike Commission, RB, Sub-Series A,
5.50%, 12/01/42

    1,229       1,444,944  
   

 

 

 
Texas — 6.2%  

City of San Antonio Texas Electric & Gas Systems Revenue, RB, Electric & Gas Systems, Junior Lien,
5.00%, 2/01/43

    1,260       1,420,345  

County of Harris Metropolitan Transit Authority, RB, Series A, 5.00%, 11/01/41

    1,710       1,907,744  

County of Harris Texas, RB, Senior Lien Toll Road, Series A:

   

5.00%, 8/15/19(c)(g)

    1,905       2,020,376  

5.00%, 8/15/38

    1,458       1,545,413  

University of Texas System, Refunding RB, Financing System, Series B, 5.00%, 8/15/43

    1,801       2,046,198  

University of Texas, Permanent University Fund, Refunding RB, Series B, 4.00%, 7/01/41

    1,980       2,114,422  
   

 

 

 
      11,054,498  
Security   Shares/Par
(000)
    Value  
Utah — 0.8%  

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

  $ 1,395     $ 1,469,092  
   

 

 

 
Virginia — 2.5%  

University of Virginia, Refunding RB, General,
5.00%, 6/01/18(c)

    2,729       2,788,626  

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

    1,553       1,662,514  
   

 

 

 
      4,451,140  
Wisconsin — 1.7%  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C,
5.25%, 4/01/19(c)(g)

    2,859       3,021,842  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 46.7%

 

    82,873,200  
   

 

 

 

Total Long-Term Investments — 154.1%
(Cost — $252,578,396)

 

    273,296,195  
   

 

 

 

Short-Term Securities — 2.4%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class,
0.74%(h)(i)

    4,263,882       4,265,161  
   

 

 

 

Total Short-Term Securities — 2.4%
(Cost — $4,265,161)

 

    4,265,161  
   

 

 

 

Total Investments — 156.5%
(Cost — $256,843,557)

 

    277,561,356  

Other Assets Less Liabilities — 1.7%

 

    3,118,485  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (27.2)%

 

    (48,276,895

VMTP Shares, at Liquidation Value — (31.0)%

 

    (55,000,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 177,402,946  
   

 

 

 

 

(a)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)  Zero-coupon bond.
(c)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(d)  When-issued security.
(e)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.
(f)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(g)  All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between May 7, 2018 to February 15, 2031, is $9,716,229. See Note 4 of the Notes to Financial Statements for details.
(h)  Annualized 7-day yield as of period end.
 

 

 

46    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

 

(i)  During the six months ended October 31, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     712,360        3,551,522        4,263,882      $ 4,265,161      $ 10,263      $ 447      $ (71
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes net capital gains distributions, if applicable.  

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     (23        12/19/17        $ 2,874        $ 38,724  

Long U.S. Treasury Bond

     (28        12/19/17          4,269          86,921  

Ultra Long U.S. Treasury Bond

     (14        12/19/17          2,307          50,743  

5-Year U.S. Treasury Note

     (26        12/29/17          3,047          29,838  
                 

 

 

 
     $ 206,226  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 206,226      $      $ 206,226  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.  

For the six months ended October 31, 2017, the effect of derivative financial instruments in the Statements of Operation was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ (296,041    $      $ (296,041
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 333,041      $      $ 333,041  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 11,607,106  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

SCHEDULES OF INVESTMENTS      47  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 273,296,195        $             —        $ 273,296,195  

Short-Term Securities

     4,265,161                            4,265,161  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 4,265,161        $ 273,296,195                 $ 277,561,356  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 206,226        $        $        $ 206,226  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) See above Schedule of Investments for values in each state or political subdivision.  
  (b)  Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.  

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $             —        $ (48,150,135      $             —        $ (48,150,135

VMTP Shares at Liquidation Value

              (55,000,000                 (55,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (103,150,135      $             —        $ (103,150,135
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

48    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

 

Alabama — 2.7%  

City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/19(a)

  $ 2,330     $ 2,504,936  

City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35

    565       631,823  

Lower Alabama Gas District, RB, Series A, 5.00%, 9/01/46

    1,420       1,777,712  
   

 

 

 
      4,914,471  
California — 23.5%  

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/18(a)

    2,895       3,006,631  

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

    1,730       1,945,644  

Central Unified School District, GO, Election of 2008, Series A (AGC), 5.63%, 8/01/19(a)

    1,325       1,429,172  

City & County of San Francisco California Airports Commission, Refunding ARB, AMT, Series A:

   

2nd, 5.50%, 5/01/28

    1,085       1,279,280  

2nd, 5.25%, 5/01/33

    850       975,953  

5.00%, 5/01/44

    1,090       1,218,500  

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

    1,575       1,619,368  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT:

   

5.50%, 3/01/30

    2,400       2,684,928  

5.75%, 3/01/34

    2,180       2,461,634  

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

    1,605       1,747,941  

County of Riverside Public Financing Authority, RB, Capital Facilities Project, 5.25%, 11/01/40

    2,500       2,977,575  

County of Sacramento California, ARB, Senior Series A (AGC), 5.50%, 7/01/18(a)

    2,100       2,162,622  

County of Ventura California Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/18(a)

    1,850       1,911,938  

Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33

    1,420       1,727,331  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/20(a)

    1,000       1,110,540  

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

    1,825       1,878,527  

Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 8/01/21(a)

    1,335       1,544,168  

State of California Public Works Board, LRB, Various Capital Projects, Series I:

   

5.50%, 11/01/30

    1,500       1,799,070  

5.50%, 11/01/31

    2,465       2,951,837  

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33

    725       850,556  

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40

    540       652,282  

University of California, Refunding RB, The Regents of Medical Center, Series J, 5.25%, 5/15/38

    4,070       4,738,294  
   

 

 

 
      42,673,791  
Colorado — 2.2%  

City & County of Denver Colorado Airport System, ARB, Series A, AMT:

   

5.50%, 11/15/28

    1,000       1,168,940  

5.50%, 11/15/30

    340       394,543  

5.50%, 11/15/31

    405       468,500  

Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 5/15/19(a)

    1,900       2,037,484  
   

 

 

 
      4,069,467  
Security   Par
(000)
    Value  
District of Columbia — 1.1%  

District of Columbia Water & Sewer Authority, Refunding RB, Series A, 5.50%, 10/01/18(a)

  $ 2,000     $ 2,081,100  
   

 

 

 
Florida — 15.9%  

City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33

    400       469,480  

County of Broward Florida Airport System Revenue, ARB, Series A, AMT, 5.00%, 10/01/45

    2,845       3,164,693  

County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT, 5.50%, 10/01/29

    1,735       2,022,576  

County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32

    1,500       1,665,705  

County of Lee Florida HFA, RB, S/F Housing, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40

    115       116,452  

County of Miami-Dade Florida, RB, Seaport Department:

   

Series A, 5.38%, 10/01/33

    1,015       1,154,735  

Series A, 6.00%, 10/01/38

    1,000       1,193,100  

Series B, AMT, 6.25%, 10/01/38

    460       546,204  

Series B, AMT, 6.00%, 10/01/42

    615       713,197  

County of Miami-Dade Florida Aviation, Refunding ARB, Series A, AMT, 5.00%, 10/01/31

    2,900       3,234,660  

County of Miami-Dade Florida Educational Facilities Authority, RB, University of Miami, Series A, 5.00%, 4/01/40

    3,465       3,900,447  

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 8/01/19(a)

    4,645       4,993,421  

Reedy Creek Florida Improvement District, GO, Series A, 5.25%, 6/01/32

    1,040       1,218,225  

Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/21(a)

    3,995       4,593,571  
   

 

 

 
      28,986,466  
Hawaii — 1.5%  

State of Hawaii, Department of Transportation, COP, AMT:

   

5.25%, 8/01/25

    425       483,773  

5.25%, 8/01/26

    460       520,467  

State of Hawaii, Department of Transportation, RB, Series A, AMT, 5.00%, 7/01/45

    1,500       1,687,575  
   

 

 

 
      2,691,815  
Illinois — 14.7%  

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%, 1/01/41

    1,000       1,106,410  

City of Chicago Illinois O’Hare International Airport, GARB:

   

3rd Lien, Series A, 5.75%, 1/01/21(a)

    960       1,091,338  

3rd Lien, Series A, 5.75%, 1/01/39

    185       208,040  

3rd Lien, Series C, 6.50%, 1/01/21(a)

    5,225       6,060,843  

Senior Lien, Series D, AMT, 5.00%, 1/01/42

    430       483,763  

City of Chicago Illinois Transit Authority, RB:

   

Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 12/01/18(a)

    2,000       2,106,520  

Sales Tax Receipts, 5.25%, 12/01/36

    1,000       1,079,000  

Sales Tax Receipts, 5.25%, 12/01/40

    1,790       1,920,777  

City of Chicago Illinois Wastewater Transmission, RB, 2nd Lien, 5.00%, 1/01/42

    2,050       2,149,445  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago:

   

5.50%, 12/01/38

    1,250       1,337,050  

5.25%, 12/01/43

    1,505       1,573,357  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 5.00%, 2/15/41

    555       612,615  

Railsplitter Tobacco Settlement Authority, RB:

   

5.50%, 6/01/23

    1,405       1,589,153  

6.00%, 6/01/28

    400       450,728  
 

 

 

SCHEDULES OF INVESTMENTS      49  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

State of Illinois, GO:

   

5.25%, 2/01/31

  $ 875     $ 941,894  

5.25%, 2/01/32

    1,355       1,454,701  

5.50%, 7/01/33

    2,000       2,170,620  

5.50%, 7/01/38

    425       455,222  
   

 

 

 
      26,791,476  
Indiana — 3.8%  

Indianapolis Local Public Improvement Bond Bank, RB, Series F, 5.25%, 2/01/36

    3,055       3,376,722  

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

   

5.50%, 1/01/19(a)

    545       572,909  

5.50%, 1/01/38

    2,235       2,343,308  

State of Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 7/01/40

    565       610,285  
   

 

 

 
      6,903,224  
Louisiana — 4.0%  

City of New Orleans Aviation Board, ARB, General Airport North Terminal Project, Series B, AMT, 5.00%, 1/01/48

    3,740       4,232,782  

Lake Charles Louisiana Harbor & Terminal District, RB, Series B, AMT (AGM), 5.50%, 1/01/29

    1,500       1,743,435  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29

    1,215       1,279,954  
   

 

 

 
      7,256,171  
Maryland — 0.9%  

County of Howard Maryland Housing Commission, RB, M/F Housing, Woodfield Oxford Square Apartments, 5.00%, 12/01/42

    1,430       1,607,177  
   

 

 

 
Massachusetts — 1.4%  

Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A:

   

5.00%, 1/01/47

    245       273,996  

5.25%, 1/01/42

    545       626,570  

Massachusetts Development Finance Agency, Refunding RB, Emerson College, Series A, 5.00%, 1/01/40

    595       680,591  

Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42

    830       880,314  
   

 

 

 
      2,461,471  
Michigan — 1.1%  

Royal Oak Michigan Hospital Finance Authority, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18(a)

    1,910       2,022,881  
   

 

 

 
Minnesota — 1.1%  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

   

6.50%, 11/15/18(a)

    205       216,416  

6.50%, 11/15/38

    1,120       1,176,997  

County of St. Paul Minnesota Housing & Redevelopment Authority, Refunding RB, Fairview Health Services, Series A, 4.00%, 11/15/43

    575       598,656  
   

 

 

 
      1,992,069  
Mississippi — 2.5%  

Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40

    2,595       3,292,017  

Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 8/01/38

    1,000       1,163,190  
   

 

 

 
      4,455,207  
Security   Par
(000)
    Value  
Montana — 0.3%  

Montana State Board of Housing, RB, Series B-2:

   

3.38%, 12/01/37

  $ 245     $ 241,999  

3.50%, 12/01/42

    105       103,444  

3.60%, 12/01/47

    165       163,497  
   

 

 

 
      508,940  
Nevada — 3.7%  

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 7/01/39

    1,410       1,522,137  

County of Clark Nevada, GO, Limited Tax, 5.00%, 6/01/18(a)

    3,500       3,580,815  

County of Clark Nevada Water Reclamation District, GO, Series A, 5.25%, 7/01/19(a)

    1,500       1,602,330  
   

 

 

 
      6,705,282  
New Jersey — 7.1%  

New Jersey EDA, RB, Goethals Bridge Replacement Project, AMT, Private Activity Bond:

   

5.38%, 1/01/43

    3,000       3,339,180  

(AGM), 5.00%, 1/01/31

    790       889,643  

New Jersey Health Care Facilities Financing Authority, RB, Virtua Health, Series A (AGC), 5.50%, 7/01/38

    2,100       2,240,427  

New Jersey Transportation Trust Fund Authority, RB, Transportation System:

   

Series A (AGC), 5.63%, 12/15/28

    3,170       3,332,018  

Series AA, 5.50%, 6/15/39

    1,890       2,054,109  

Series B, 5.25%, 6/15/36

    1,000       1,063,170  
   

 

 

 
      12,918,547  
New York — 5.9%  

City of New York New York Municipal Water Finance Authority, Refunding RB, 2nd General Resolution, Series EE:

   

Fiscal 2009, 5.25%, 6/15/40

    3,410       3,623,398  

Water & Sewer System, 5.38%, 6/15/43

    1,305       1,459,799  

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:

   

5.75%, 2/15/21(a)

    1,510       1,728,074  

5.75%, 2/15/47

    1,000       1,139,210  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 166th Series, 5.25%, 7/15/36

    2,000       2,235,620  

TSASC, Inc., Refunding RB, Series A, 5.00%, 6/01/41

    535       589,752  
   

 

 

 
      10,775,853  
Ohio — 1.3%  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31

    2,000       2,338,680  
   

 

 

 
Oklahoma — 0.6%  

Oklahoma Development Finance Authority, RB, Provident Oklahoma Education Resources, Inc., Cross Village Student Housing Project, Series A, 5.25%, 8/01/57

    955       1,049,707  
   

 

 

 
Pennsylvania — 1.1%  

County of Berks IDA, Refunding RB, Tower Health Projects, 5.00%, 11/01/47

    575       641,574  

Pennsylvania Turnpike Commission, RB, Sub-Series B-1, 5.25%, 6/01/47

    170       195,527  

Township of Bristol Pennsylvania School District, GO, 5.25%, 6/01/37

    1,000       1,145,760  
   

 

 

 
      1,982,861  
South Carolina — 6.0%  

County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38

    2,180       2,555,091  

County of Charleston South Carolina Airport District, ARB, Series A, AMT:

   

5.50%, 7/01/38

    1,000       1,134,860  

6.00%, 7/01/38

    1,695       1,974,302  

5.50%, 7/01/41

    1,000       1,131,510  
 

 

 

50    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
South Carolina (continued)  

State of South Carolina Ports Authority, RB, AMT, 5.25%, 7/01/50

  $ 1,095     $ 1,222,786  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

    2,500       2,822,425  
   

 

 

 
      10,840,974  
Tennessee — 1.5%  

Metropolitan Nashville Airport Authority, ARB, Series B, AMT, 5.00%, 7/01/40

    2,500       2,805,400  
   

 

 

 
Texas — 22.9%  

Austin Community College District Public Facility Corp., RB, Educational Facilities Project, Round Rock Campus, 5.25%, 8/01/18(a)

    2,500       2,577,525  

City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37

    1,360       1,569,005  

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC):

   

6.00%, 5/15/19(a)

    3,790       4,067,239  

6.00%, 11/15/35

    210       226,132  

Dallas Texas Area Rapid Transit, Refunding RB, Senior Lien(a):

   

5.25%, 12/01/18

    1,490       1,556,558  

5.25%, 12/01/18

    1,110       1,159,584  

Dallas-Fort Worth Texas International Airport, ARB, Joint Improvement, AMT:

   

Series A, 5.00%, 11/01/38

    2,965       3,212,607  

Series H, 5.00%, 11/01/37

    2,200       2,443,386  

Lower Colorado River Authority, Refunding RB, 5.50%, 5/15/33

    1,240       1,467,081  

North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 9/01/21(a)

    3,150       3,617,271  

North Texas Tollway Authority, Refunding RB:

   

1st Tier System (NPFGC), 5.75%, 1/01/18(a)

    1,835       1,849,203  

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

    590       594,567  

1st Tier System, Series A, 5.63%, 1/01/18(a)

    2,940       2,961,903  

1st Tier System, Series A, 5.63%, 1/01/33

    3,645       3,672,483  

1st Tier System, Series S (NPFGC), 5.75%, 1/01/18(a)

    5,360       5,401,487  

1st Tier System, Series S (NPFGC), 5.75%, 1/01/18(a)

    2,460       2,479,040  

1st Tier System, Series SE (NPFGC), 5.75%, 1/01/40

    915       922,082  

1st Tier-Series A, 5.00%, 1/01/43(b)

    910       1,051,132  

Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38

    620       702,156  
   

 

 

 
      41,530,441  
Vermont — 0.9%  

University of Vermont & State Agricultural College, Refunding RB, 5.00%, 10/01/43

    1,470       1,697,277  
   

 

 

 
Virginia — 1.1%  

City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43

    570       636,525  

State of Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18(a)

    1,300       1,375,478  
   

 

 

 
      2,012,003  
Washington — 2.7%  

City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 2/01/21(a)

    1,375       1,545,720  

Port of Seattle Washington, ARB, Intermediate Lien, Series C, AMT:

   

5.00%, 5/01/37

    1,450       1,686,814  

5.00%, 5/01/42

    385       443,755  

State of Washington, GO, Various Purposes, Series B, 5.25%, 2/01/36

    1,075       1,202,635  
   

 

 

 
      4,878,924  
Security   Par
(000)
    Value  
Wyoming — 0.2%  

State of Wyoming Municipal Power Agency, Inc., Refunding RB, Series A (BAM), 5.00%, 1/01/42

  $ 330     $ 373,481  
   

 

 

 

Total Municipal Bonds — 131.7%

      239,325,156  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(c)

 

California — 2.9%  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No.2 Bonds, 5.00%, 10/01/47

    4,500       5,193,278  
   

 

 

 
Colorado — 3.1%  

Colorado Health Facilities Authority, RB, Catholic Health, Series C-3 (AGM), 5.10%, 4/29/18(a)

    5,610       5,720,293  
   

 

 

 
Connecticut — 1.1%  

State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group,
5.00%, 12/01/45

    1,771       2,001,278  
   

 

 

 
District of Columbia — 0.6%  

District of Columbia Water & Sewer Authority, Refunding RB, Series A, 6.00%, 10/01/18(a)(d)

    1,039       1,084,914  
   

 

 

 
Florida — 4.3%  

County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 6.00%, 7/01/18(a)

    7,500       7,744,088  
   

 

 

 
Illinois — 1.4%  

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien (AGM), 5.25%, 11/01/33

    2,508       2,580,413  
   

 

 

 
Maryland — 0.9%  

City of Baltimore Maryland, RB, Subordinate Wastewater Projects, Series A, 5.00%, 7/01/46

    1,499       1,724,142  
   

 

 

 
Michigan — 1.9%  

State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45

    3,020       3,435,748  
   

 

 

 
Nevada — 5.1%  

County of Clark Nevada Water Reclamation District, GO(a):

   

Limited Tax, 6.00%, 7/01/18

    5,000       5,162,775  

Series B, 5.50%, 7/01/19

    3,749       4,014,541  
   

 

 

 
      9,177,316  
New Jersey — 1.2%  

New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29

    2,159       2,222,847  
   

 

 

 
New York — 5.3%  

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

    1,400       1,466,797  

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds,
5.25%, 12/15/43

    4,530       5,106,618  

New York Liberty Development Corp., Refunding RB, World Trade Center Project, 5.75%, 11/15/51(d)

    2,660       3,059,038  
   

 

 

 
      9,632,453  
Pennsylvania — 0.7%  

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB (BAM), 5.00%, 8/15/38

    1,184       1,357,318  
   

 

 

 
Utah — 0.6%  

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

    1,005       1,058,378  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      51  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Shares/Par
(000)
    Value  
Virginia — 1.5%  

County of Fairfax Virginia EDA, RB, Metrorail Parking System Project, 5.00%, 4/01/47(d)

  $ 2,320     $ 2,690,875  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts —30.6%

 

    55,623,341  
   

 

 

 

Total Long-Term Investments — 162.3%
(Cost — $275,429,873)

 

    294,948,497  
   

 

 

 

Short-Term Securities

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.74%(e)(f)

    525,382       525,539  
   

 

 

 

Total Short-Term Securities — 0.3%
(Cost: — $525,539)

 

    525,539  
   

 

 

 

Total Investments — 162.6%
(Cost — $275,955,412)

 

    295,474,036  

Other Assets Less Liabilities — 1.3%

 

    2,441,821  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (16.0)%

 

    (29,191,135

VMTP Shares, at Liquidation Value — (47.9)%

 

    (87,000,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 181,724,722  
   

 

 

 
(a)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)  When-issued security.
(c)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(d)  All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between May 7, 2018 to October 1, 2024, is $3,450,256. See Note 4 of the Notes to Financial Statements for details.
(e)  Annualized 7-day yield as of period end.
 
(f)  During the six months ended October 31, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     5,580,695        (5,055,313      525,382      $ 525,539      $ 10,336      $ 1,222      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) Includes net capital gain distributions, if applicable.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     (28        12/19/17        $ 3,498        $ 53,060  

Long U.S. Treasury Bond

     (21        12/19/17          3,202          63,520  

Ultra Long U.S. Treasury Bond

     (6        12/19/17          989          22,362  

5-Year U.S. Treasury Note

     (34        12/29/17          3,984          38,704  
                 

 

 

 
     $ 177,646  
                 

 

 

 

 

 

52    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

 

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 177,646      $      $ 177,646  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.  

For the six months ended October 31, 2017, the effect of derivative financial instruments in the Statements of Operation was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ (296,675    $      $ (296,675
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 309,747      $      $ 309,747  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 10,023,293  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 294,948,497        $             —        $ 294,948,497  

Short-Term Securities:

     525,539                            525,539  
  

 

 

      

 

 

      

 

 

      

 

 

 

Total

   $ 525,539        $ 294,948,497        $        $ 295,474,036  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 177,646        $        $        $ 177,646  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each state or political subdivision.  
  (b)  Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.  

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $             —        $ (29,123,326      $             —        $ (29,123,326

VMTP Shares at Liquidation Value

              (87,000,000                 (87,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (116,123,326      $        $ (116,123,326
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      53  


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   
Alabama — 0.8%            

City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/19(a)

  $ 4,615     $ 4,961,494  
   

 

 

 
Arizona — 3.6%            

Arizona Board of Regents, University of Arizona, RB, 5.00%, 8/01/28

    2,000       2,247,880  

Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 2/01/30

    2,685       2,910,916  

Arizona Industrial Development Authority, RB, Academies of Math & Science Projects, Series B, 4.25%, 7/01/27(b)

    590       588,118  

Arizona State University, RB, Series D, 5.00%, 7/01/32

    1,350       1,587,101  

City of Phoenix Arizona IDA, RB, Facility, Legacy Traditional Schools Project, Series A, 5.75%, 7/01/24(b)

    750       818,243  

City of Tucson Arizona, COP, Refunding, (AGC), 4.00%, 7/01/20

    2,325       2,483,751  

County of Pinal Arizona Electric District No. 3, Refunding RB, 5.00%, 7/01/21(a)

    1,600       1,809,280  

Glendale Union School District No. 205, GO, Series C, (BAM):

   

5.00%, 7/01/24

    1,945       2,259,331  

5.00%, 7/01/27

    500       571,295  

Phoenix-Mesa Gateway Airport Authority, RB, Mesa Project, AMT:

   

5.00%, 7/01/27

    700       783,111  

5.00%, 7/01/32

    1,925       2,128,395  

Scottsdale IDA, Refunding RB, Scottsdale Healthcare, Series C (AGM), 5.00%, 9/01/35

    2,050       2,194,955  

State of Arizona, COP, Department of Administration, Series A (AGM), 4.25%, 10/01/23

    1,000       1,048,770  
   

 

 

 
      21,431,146  
Arkansas — 0.9%  

City of Benton Arkansas, RB, 5.00%, 6/01/29

    1,055       1,225,214  

University of Arkansas, Refunding RB:

   

5.00%, 3/01/31

    2,315       2,696,998  

5.00%, 3/01/34

    1,270       1,462,125  
   

 

 

 
      5,384,337  
California — 4.9%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.00%, 8/15/22

    2,135       2,358,470  

California Health Facilities Financing Authority, Refunding RB, 5.00%, 11/15/29

    1,930       2,353,037  

California Infrastructure & Economic Development Bank, Refunding RB, 4.00%, 11/01/31

    1,335       1,426,688  

California Pollution Control Financing Authority, RB, Mandatory Put Bonds, Republic Services, Inc. Project, Series B, AMT, 5.25%, 6/01/23(c)

    605       606,924  

City of Los Angeles Department of Airports, RB, Subordinate, Series A, AMT, 5.00%, 5/15/31

    3,450       4,100,394  

City of San Jose California, Refunding ARB, AMT:

   

Norman Y Mineta San Jose International Airport SJC, Series A, 5.00%, 3/01/30

    500       596,550  

Series A-1, 5.00%, 3/01/25

    2,000       2,205,940  

City of San Jose California, Refunding RB, Norman Y Mineta San Jose International Airport SJC, AMT, Series A, 5.00%, 3/01/29

    1,250       1,501,675  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.00%, 6/01/26

    5,000       5,883,800  

State of California, GO:

   

5.50%, 4/01/28

    15       15,057  

Various Purposes, 5.00%, 11/01/17(a)

    105       105,000  

Various Purposes, 5.75%, 4/01/31

    7,000       7,469,700  

Various Purposes, 5.00%, 11/01/32

    660       660,000  
   

 

 

 
      29,283,235  
Security   Par
(000)
    Value  
Colorado — 1.0%  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatiives, Series B-1, 5.00%, 7/01/38

  $ 270     $ 287,461  

Denver Urban Renewal Authority, Refunding, Tax Allocation Bond, Stapleton, Senior-Series A-1, 5.00%, 12/01/23

    2,500       2,864,475  

Park Creek Metropolitan District, Refunding, Tax Allocation Bonds, 5.00%, 12/01/34

    500       547,220  

University of Northern Colorado, Refunding RB, Series A, 5.00%, 6/01/31

    2,000       2,301,620  
   

 

 

 
      6,000,776  
Connecticut — 1.8%  

Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/31

    4,530       4,884,110  

University of Connecticut, RB, Series A, 5.00%, 3/15/28

    5,000       5,860,250  
   

 

 

 
      10,744,360  
Florida — 8.5%  

County of Broward Florida School Board, COP, Refunding, Series A (AGM), 5.00%, 7/01/24

    10,000       11,227,800  

County of Lee Florida, Refunding ARB, Series A, AMT (AGM), 5.00%, 10/01/27

    1,635       1,822,436  

County of Lee Florida, Refunding RB, Series A, AMT, 5.50%, 10/01/23

    1,000       1,139,930  

County of Miami-Dade Florida, RB, AMT, Series B:

   

6.00%, 10/01/28

    3,470       4,108,584  

6.00%, 10/01/29

    3,480       4,109,984  

County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, Series A, 5.00%, 4/01/32

    5,020       5,736,605  

County of Miami-Dade Florida Transit System Sales Surtax Revenue, Refunding RB, 5.00%, 7/01/32

    1,500       1,705,125  

County of Miami-Dade Florida Water & Sewer System Revenue, Refunding RB, Series C (BHAC), 5.00%, 10/01/18(a)

    8,000       8,284,320  

Florida Gulf Coast University Financing Corp., Refunding RB, Housing Project, Series A(d):

   

5.00%, 8/01/28

    1,000       1,202,370  

5.00%, 8/01/29

    1,000       1,194,510  

5.00%, 8/01/30

    1,390       1,646,844  

5.00%, 8/01/31

    1,295       1,523,050  

5.00%, 8/01/32

    2,000       2,340,700  

Lakewood Ranch Stewardship District, Special Assessment Bonds:

   

Del Webb Project, 3.65%, 5/01/22(b)

    640       642,803  

Del Webb Project, 4.30%, 5/01/27(b)

    520       524,342  

Lakewood National and Polo Run Projects, 4.00%, 5/01/22

    1,500       1,510,200  

Midtown Miami Community Development District, Refunding, Special Assessment Bonds, Series A, 4.25%, 5/01/24

    1,485       1,542,796  

Sterling Hill Community Development District, Refunding, Special Assessment Bonds, Series B, 5.50%, 11/01/10(e)(f)

    143       99,782  
   

 

 

 
      50,362,181  
Georgia — 2.6%  

City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/32

    10,315       12,137,454  

County of Cobb Kennestone Hospital Authority, Refunding RB, Revenue Anticipation Certificates:

   

5.00%, 4/01/31

    800       933,392  

5.00%, 4/01/32

    1,250       1,450,613  

County of Fulton Development Authority, RB, Revenue Anticipation Certificates, Series A, 5.00%, 4/01/32

    1,000       1,160,490  
   

 

 

 
      15,681,949  
 

 

 

54    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Hawaii — 0.9%  

State of Hawaii Airports System, Refunding ARB, Series A, 5.25%, 7/01/29

  $ 5,000     $ 5,509,850  
   

 

 

 
Illinois — 15.4%  

City of Chicago Illinois Midway International Airport, Refunding ARB, 2nd Lien, Series A, AMT:

   

5.00%, 1/01/32

    5,000       5,636,700  

5.50%, 1/01/32

    1,500       1,704,210  

City of Chicago Illinois O’Hare International Airport, Refunding GARB, AMT, Series C:

   

5.25%, 1/01/28

    1,350       1,537,178  

5.25%, 1/01/29

    3,020       3,432,441  

City of Chicago Illinois O’Hare International Airport, RB, Refunding GARB, 5.00%, 1/01/32

    3,745       4,323,602  

City of Chicago Illinois O’Hare International Airport, Refunding GARB, Senior Lien, Series A, AMT, 5.00%, 1/01/23

    13,000       14,903,980  

City of Chicago Illinois Transit Authority, RB, 5.25%, 12/01/31

    3,700       4,038,217  

Cook County Community College District No. 508, GO, City College of Chicago, 5.13%, 12/01/38

    1,000       1,036,660  

Madison-Macoupin Etc. Counties Community College District No. 536, GO, Refunding, Lewis & Clark Community College:

   

5.00%, 5/01/30

    475       504,407  

5.00%, 5/01/31

    500       530,830  

5.00%, 5/01/32

    500       529,580  

Railsplitter Tobacco Settlement Authority, RB:

   

5.50%, 6/01/23

    3,500       3,958,745  

6.25%, 6/01/24

    11,750       12,427,857  

State of Illinois, GO:

   

5.25%, 2/01/30

    5,010       5,407,443  

5.00%, 5/01/30

    10,000       10,697,000  

State of Illinois Finance Authority, Refunding RB, Southern Illinois Healthcare Enterprises, Inc.:

   

5.00%, 3/01/28

    1,100       1,292,643  

5.00%, 3/01/29

    700       816,970  

5.00%, 3/01/30

    550       636,708  

5.00%, 3/01/31

    450       517,316  

5.00%, 3/01/32

    920       1,052,020  

State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 1/01/34

    9,140       10,216,692  

State of Illinois Toll Highway Authority, Refunding RB, Senior Series A, 5.00%, 12/01/31

    5,220       6,085,894  
   

 

 

 
      91,287,093  
Indiana — 5.0%  

City of Whiting Indiana, RB, BP Products North America, Inc. Project, 5.25%, 1/01/21

    4,800       5,343,024  

County of Jasper Indiana, Refunding RB, Northern Indiana Public Service Co., Series C (NPFGC), 5.85%, 4/01/19

    2,000       2,113,120  

Indiana Finance Authority, RB, Wastewater, 1st Lien, Series A, 5.25%, 10/01/31

    10,000       11,444,800  

Indiana Finance Authority, Refunding RB, US Steel Corp. Project, 6.00%, 12/01/19

    5,000       5,170,250  

Indiana Municipal Power Agency, Refunding RB, Series A, 5.00%, 1/01/33

    5,000       5,836,650  
   

 

 

 
      29,907,844  
Iowa — 1.1%  

Iowa Higher Education Loan Authority, RB, Private College Facility:

   

5.25%, 4/01/23

    695       782,396  

5.25%, 4/01/24

    730       821,279  

5.25%, 4/01/25

    520       584,283  

5.25%, 4/01/26

    360       403,992  
Security   Par
(000)
    Value  
Iowa (continued)  

Iowa Higher Education Loan Authority, Refunding RB, Private College Facility:

   

5.00%, 9/01/20(a)

  $ 2,315     $ 2,556,339  

Upper Iowa University Project, 5.00%, 9/01/20(g)

    1,000       1,071,460  
   

 

 

 
      6,219,749  
Kansas — 1.4%  

County of Seward Unified School District No. 480 Liberal, GO, Refunding:

   

5.00%, 9/01/33

    1,005       1,166,765  

5.00%, 9/01/33

    4,995       5,569,375  

Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C, 5.00%, 11/15/23

    1,500       1,617,705  
   

 

 

 
      8,353,845  
Kentucky — 0.5%  

Countyof Louisville/Jefferson Metropolitan Government, Refunding RB, Catholic Health Initiatives:

   

5.00%, 12/01/35

    120       127,920  

Series A, 5.00%, 12/01/31

    2,750       2,959,275  
   

 

 

 
      3,087,195  
Louisiana — 3.7%  

City of Bossier City Louisiana Utilities, Refunding RB, 5.00%, 10/01/32

    2,000       2,326,660  

City of New Orleans Louisiana Aviation Board, Refunding GARB, Restructuring, Series A-2 (AGC), 6.00%, 1/01/19(a)

    850       897,914  

Louisiana Local Government Environmental Facilities & Community Development Authority, Refunding RB, BRCC Facilities Corp. Project:

   

5.00%, 12/01/27

    3,445       3,856,609  

5.00%, 12/01/28

    3,715       4,158,868  

New Orleans Aviation Board, RB:

   

General Airport, North Terminal Project, Series B, AMT, 5.00%, 1/01/32

    800       934,312  

Series A, 5.00%, 1/01/32

    1,000       1,153,090  

Series A, 5.00%, 1/01/33

    1,000       1,148,870  

State of Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, 4.00%, 5/01/34

    3,000       3,174,570  

Terrebonne Levee & Conservation District, RB, Sales Tax, 5.00%, 7/01/28

    3,660       4,097,187  
   

 

 

 
      21,748,080  
Maine — 0.3%  

Portland Housing Development Corp., Refunding RB, Senior Living, Retirement Facilities, Series A, 6.00%, 2/01/34

    1,965       1,967,967  
   

 

 

 
Maryland — 1.1%  

City of Rockville Maryland, RB, Ingleside King Farm Project, 3.50%, 11/01/26(d)

    1,825       1,827,591  

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.13%, 6/01/20

    1,375       1,468,184  

Maryland Health & Higher Educational Facilities Authority, RB, Johns Hopkins Health System, Series B, 5.00%, 7/01/33

    1,140       1,282,751  

Maryland Health & Higher Educational Facilities Authority, Refunding RB, 5.00%, 7/01/33

    1,500       1,676,415  
   

 

 

 
      6,254,941  
Massachusetts — 2.4%  

Massachusetts Development Finance Agency, Refunding RB:

   

Emerson College Issue, Series A, 5.00%, 1/01/30

    1,500       1,777,020  

Emerson College Issue, Series A, 5.00%, 1/01/31

    1,730       1,963,412  

Emerson College Issue, Series A, 5.00%, 1/01/31

    2,005       2,344,406  

Suffolk University, 5.00%, 7/01/29

    2,700       3,157,380  

Suffolk University, 5.00%, 7/01/30

    3,125       3,645,844  
 

 

 

SCHEDULES OF INVESTMENTS      55  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts (continued)  

Massachusetts Health & Educational Facilities Authority, Refunding RB, Winchester Hospital, 5.00%, 7/01/25

  $ 1,060     $ 1,144,800  
   

 

 

 
      14,032,862  
Michigan — 3.2%  

County of Wayne Airport Authority, Refunding ARB, Junior Lien Series B, AMT, 5.00%, 12/01/30

    700       813,057  

Manistee Area Public Schools, GO, Refunding, (Q-SBLF), 5.00%, 5/01/25

    1,000       1,112,300  

Michigan Finance Authority, Refunding RB, Senior Lien, Detroit Water and Sewer, Series C-3 (AGM), 5.00%, 7/01/31

    4,000       4,547,040  

Michigan State Building Authority, Refunding RB, Facilities Program, Series II-A, 5.00%, 10/15/24

    2,500       2,821,225  

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.25%, 11/15/19(a)

    4,900       5,301,065  

State of Michigan, Refunding RB, Grant Anticipation, 5.00%, 3/15/25

    3,750       4,500,150  
   

 

 

 
      19,094,837  
Minnesota — 1.2%  

City of Minneapolis, RB, YMCA of the Greater Twin Cities Project:

   

4.00%, 6/01/30

    150       159,170  

4.00%, 6/01/31

    50       52,788  

County of St. Paul Minnesota Housing & Redevelopment Authority, RB, Great River School Project, Series A, 4.75%, 7/01/29(b)

    250       253,080  

University of Minnesota, RB, Biomedical Science Research Facilities Funding Program:

   

Series B, 5.00%, 8/01/36

    1,000       1,115,430  

Series C, 5.00%, 8/01/27

    1,390       1,625,994  

Series C, 5.00%, 8/01/28

    740       862,566  

Series C, 5.00%, 8/01/29

    1,555       1,808,869  

Series C, 5.00%, 8/01/30

    835       969,351  
   

 

 

 
      6,847,248  
Missouri — 0.1%  

City of St. Louis Missouri Industrial Development Authority, Refunding RB, Ballpark Village Development Project, Series A, 3.88%, 11/15/29

    395       401,782  
   

 

 

 
Montana — 0.1%  

County of Yellowstone Montana School District No. 2 Billings, GO, 5.00%, 6/15/30

    500       578,785  
   

 

 

 
Nebraska — 0.9%  

County of Douglas Nebraska Hospital Authority No. 3, Refunding RB, 5.00%, 11/01/30

    800       919,824  

County of Lancaster Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, 5.50%, 1/01/30

    1,000       1,076,650  

Nebraska Public Power District, Refunding RB, Series A:

   

5.00%, 1/01/30

    1,000       1,129,510  

5.00%, 1/01/32

    2,000       2,250,460  
   

 

 

 
      5,376,444  
Nevada — 1.7%  

County of Clark Nevada Department of Aviation, Refunding RB, 5.00%, 7/01/33

    5,000       5,766,050  

County of Humboldt Nevada, Refunding RB, Idaho Power Co. Project, 5.15%, 12/01/24

    3,800       4,040,426  
   

 

 

 
      9,806,476  
New Jersey — 24.0%  

County of Essex New Jersey Improvement Authority, LRB, Newark Project, Series A (AGM), 5.00%, 11/01/20

    2,000       2,139,060  
Security   Par
(000)
    Value  
New Jersey (continued)  

New Jersey EDA, RB, AMT:

   

Continental Airlines, Inc. Project, 5.13%, 9/15/23

  $ 6,040     $ 6,649,859  

Goethals Bridge Replacement Project, Private Activity Bond, 5.50%, 1/01/26

    1,500       1,743,435  

Goethals Bridge Replacement Project, Private Activity Bond, 5.50%, 1/01/27

    1,000       1,159,200  

New Jersey EDA, Refunding RB:

   

New Jersey American Water Co., Series E, AMT, 4.70%, 12/01/25

    3,000       3,235,170  

School Facilities Construction, Series AA, 4.25%, 12/15/24

    3,850       3,927,847  

School Facilities Construction, Series EE, 5.00%, 9/01/23

    3,465       3,704,535  

Sub-Series A (BAM), 5.00%, 7/01/28

    1,615       1,903,455  

New Jersey Educational Facilities Authority, RB, Higher Education Facilities Trust Fund, 5.00%, 6/15/28

    10,000       10,934,700  

New Jersey Educational Facilities Authority, Refunding RB, 5.00%, 7/01/30

    5,000       5,724,100  

New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Joseph Health System Obligated Group Issue, 5.00%, 7/01/30

    1,595       1,808,092  

New Jersey Higher Education Student Assistance Authority, Refunding RB:

   

Series 1, AMT, 5.50%, 12/01/26

    1,040       1,137,042  

Student Loan, Series 1A, 4.75%, 12/01/21

    1,370       1,454,817  

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 1/01/32

    12,000       13,939,080  

New Jersey State Turnpike Authority, Refunding RB, Series B, 5.00%, 1/01/29

    10,000       11,438,200  

New Jersey Transportation Trust Fund Authority, RB:

   

Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 6/15/30

    2,000       2,234,100  

Federal Highway Reimbursement Revenue Notes, Series A-2, 5.00%, 6/15/30

    10,000       10,212,900  

Series B, 5.25%, 6/15/26

    3,500       3,780,560  

Transportation Program, Series AA, 5.25%, 6/15/31

    12,000       13,126,440  

Transportation Program, Series AA, 5.25%, 6/15/32

    2,250       2,500,133  

Transportation System, Series A, 5.25%, 6/15/24

    3,185       3,473,529  

Transportation System, Series B, 5.50%, 6/15/31

    13,970       15,309,723  

Transportation System, Series C, 5.25%, 6/15/32

    10,000       10,948,800  

Newark Housing Authority, RB, Series A:

   

5.00%, 12/01/23

    1,230       1,439,272  

5.00%, 12/01/25

    1,345       1,544,195  

South Jersey Port Corp., RB, Marine Terminal, Series O-1 (AGC), 4.63%, 1/01/19(a)

    1,375       1,431,540  

State of New Jersey, GO, Various Purposes, 5.00%, 6/01/28

    5,000       5,724,450  
   

 

 

 
      142,624,234  
New Mexico — 1.2%  

Albuquerque Municipal School District No. 12, GO, Series 2017, 5.00%, 8/01/30

    1,250       1,499,550  

County of Albuquerque Bernalillo New Mexico Water Utility Authority, Refunding RB, 4.00%, 7/01/33

    2,510       2,693,079  

New Mexico Hospital Equipment Loan Council, Refunding RB, 5.00%, 8/01/31

    2,500       2,896,275  
   

 

 

 
      7,088,904  
New York — 17.1%  

Build NYC Resource Corp., Refunding RB, New York Law School Project, 5.00%, 7/01/33

    3,085       3,499,346  

City of New York New York, GO, Refunding, Series A, 5.00%, 8/01/29

    6,125       7,316,190  
 

 

 

56    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

City of New York New York, GO:

   

Sub-Series B-1, 5.25%, 9/01/22

  $ 4,250     $ 4,397,517  

Sub-Series I-1, 5.50%, 4/01/21

    5,000       5,304,850  

Sub-Series-D-1, 5.13%, 12/01/17(a)

    10       10,034  

Sub-Series-D-1, 5.13%, 12/01/26

    1,875       1,881,788  

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.00%, 1/15/23

    3,560       3,724,935  

Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, The Charter School for Applied Technologies Project, Series A:

   

4.00%, 6/01/22

    1,000       1,058,740  

4.50%, 6/01/27

    1,710       1,849,570  

5.00%, 6/01/35

    415       445,353  

County of Monroe New York Industrial Development Corp., Refunding RB, Series A, 5.00%, 7/01/29

    5,695       6,631,941  

County of Nassau New York, GO, Series A, 5.00%, 1/01/33

    3,110       3,608,595  

County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien, Remarketing, Series A:

   

5.00%, 11/01/24

    5,470       6,011,202  

5.00%, 11/01/30

    655       710,937  

Long Island Power Authority, Refunding RB, Electric System, Series A, 5.50%, 4/01/19(a)

    1,000       1,061,550  

Metropolitan Transportation Authority, RB(a):

   

Sub-Series B-1, 5.00%, 11/15/21

    2,300       2,633,546  

Sub-Series B-4, 5.00%, 11/15/21

    1,500       1,717,530  

New York City Trust for Cultural Resources, Refunding RB, Carnegie Hall, Series A, 5.00%, 12/01/29

    2,750       2,952,868  

New York State Dormitory Authority, RB, North Shore-Long Island Jewish Health System, Series A, 5.50%, 5/01/19(a)

    1,495       1,592,414  

New York State Dormitory Authority, Refunding RB:

   

4.25%, 9/01/19(a)

    480       506,602  

5.00%, 7/01/30

    1,555       1,840,016  

New York State Thruway Authority, RB, Junior Lien, Series A, 5.00%, 1/01/33

    4,500       5,235,705  

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, Series 8, 5.00%, 12/01/20

    2,475       2,684,806  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 152nd Series, AMT, 5.00%, 11/01/23

    1,000       1,019,440  

Port Authority of New York & New Jersey, Refunding RB, 5.00%, 11/01/28

    4,185       5,000,405  

State of New York Dormitory Authority, RB:

   

Fordham University, Series A, 5.25%, 7/01/25

    900       1,012,662  

Icahn School of Medicine at Mount Sinai, Series A, 5.00%, 7/01/32

    9,000       10,283,490  

Mental Health Services (AGM), 5.00%, 8/15/18(a)

    10       10,313  

Mental Health Services (AGM), 5.00%, 8/15/18(a)

    30       30,939  

Mental Health Services (AGM), 5.00%, 2/15/22

    325       335,150  

Mental Health Services, 2nd Series (AGM), 5.00%, 8/15/18(a)

    10       10,313  

Municipal Health Facilities Lease, Sub-Series 2-4, 5.00%, 1/15/27

    6,900       6,956,649  

New York University Hospitals Center, Series A, 5.00%, 7/01/20(a)

    1,725       1,893,929  

New York University Hospitals Center, Series A, 5.13%, 7/01/20(a)

    1,670       1,839,004  

State of New York Dormitory Authority, Refunding RB:

   

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 5/01/32

    3,060       3,533,321  

Orange Regional Medical Center, 5.00%, 12/01/27(b)

    900       1,028,745  

Orange Regional Medical Center, 5.00%, 12/01/28(b)

    1,800       2,035,332  
   

 

 

 
      101,665,727  
Security   Par
(000)
    Value  
North Carolina — 0.3%  

North Carolina Medical Care Commission, Refunding RB, WakeMed, Series A, 5.00%, 10/01/31

  $ 1,500     $ 1,715,625  
   

 

 

 
Ohio — 1.2%  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31

    6,000       7,016,040  
   

 

 

 
Oklahoma — 0.8%  

Oklahoma City Public Property Authority, Refunding RB:

   

5.00%, 10/01/27

    1,190       1,423,145  

5.00%, 10/01/28

    1,265       1,503,769  

5.00%, 10/01/29

    1,400       1,658,692  
   

 

 

 
      4,585,606  
Oregon — 1.5%  

County of Klamath Oregon School District, GO:

   

5.00%, 6/15/30

    1,000       1,158,680  

5.00%, 6/15/31

    1,000       1,157,530  

County of Umatilla Oregon School District No. 16R Pendleton, GO, Series A, 5.00%, 6/15/32

    2,000       2,300,600  

Oregon State Facilities Authority, Refunding RB, Reed College Project, Series A, 5.00%, 7/01/29

    1,835       2,002,572  

State of Oregon, GO, Series H, 5.00%, 5/01/36

    2,000       2,270,660  
   

 

 

 
      8,890,042  
Pennsylvania — 6.7%  

Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project, 5.00%, 5/01/22(b)

    2,000       2,177,660  

City of Philadelphia Pennsylvania, ARB, Series A, AMT (AGM), 5.00%, 6/15/20

    2,895       2,904,698  

City of Philadelphia Pennsylvania, GO, Refunding Series A, 5.00%, 8/01/31

    6,145       7,267,938  

County of Allegheny Pennsylvania, GO, Refunding, Series C-68, 5.00%, 11/01/25

    2,515       2,836,493  

County of Allegheny Pennsylvania, GO, Series C-67:

   

5.00%, 11/01/25

    2,700       3,049,623  

5.00%, 11/01/26

    2,375       2,668,811  

Pennsylvania Economic Development Financing Authority, RB, PA Bridges Finco LP, AMT, 5.00%, 12/31/28

    115       134,045  

Pennsylvania Turnpike Commission, RB:

   

Series B, 5.00%, 12/01/32

    1,500       1,747,740  

Sub-Series B, 5.25%, 12/01/31

    4,000       4,409,400  

Pennsylvania Turnpike Commission, Refunding RB, Sub-Series B-2, 5.00%, 6/01/31

    5,000       5,827,200  

South Fork Municipal Authority, Refunding RB, Conemaugh Valley Memorial Hospital, Series A (AGC), 6.00%, 7/01/20(a)

    6,225       6,974,552  
   

 

 

 
      39,998,160  
Puerto Rico — 0.4%  

Puerto Rico Housing Finance Authority, Refunding RB, M/F Housing, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

    2,475       2,591,870  
   

 

 

 
Rhode Island — 1.8%  

Narragansett Bay Commission, Refunding RB, Series B, 5.00%, 9/01/32

    4,150       4,851,558  

Providence Redevelopment Agency, Refunding RB, Series A, 5.00%, 4/01/29

    1,000       1,089,000  

Rhode Island Health & Educational Building Corp., RB, City of Newport Issue Financing Program, Series C, 5.00%, 5/15/30

    2,305       2,567,401  

Rhode Island Health & Educational Building Corp., Refunding RB, 5.00%, 9/01/32

    2,000       2,328,600  
   

 

 

 
      10,836,559  
 

 

 

SCHEDULES OF INVESTMENTS      57  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
South Carolina — 2.5%  

South Carolina Jobs-Economic Development Authority, Refunding RB, The Woodlands at Furman, 4.00%, 11/15/27

  $ 995     $ 1,001,000  

South Carolina Public Service Authority, Refunding RB, Series A:

   

5.00%, 12/01/30

    5,500       6,385,280  

5.00%, 12/01/31

    5,660       6,543,073  

5.00%, 12/01/32

    200       230,058  

5.00%, 12/01/33

    800       916,328  
   

 

 

 
      15,075,739  
South Dakota — 0.2%  

South Dakota Health & Educational Facilities Authority, Refunding RB, Regional Health, 5.00%, 9/01/20(a)

    1,000       1,104,250  
   

 

 

 
Tennessee — 2.5%  

County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project:

   

Series A, 5.00%, 11/01/23

    2,695       2,884,890  

Series B, 5.00%, 11/01/22

    1,000       1,071,280  

Knox County Health Educational & Housing Facility Board Tennessee, Refunding RB, Eastowne Village Project, 4.00%, 6/01/31(c)

    3,125       3,228,656  

Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 7/01/35

    4,000       4,547,360  

Tennessee Energy Acquisition Corp., RB, Gas Project, Series A, 4.00%, 5/01/48(c)(d)

    2,815       3,076,908  
   

 

 

 
      14,809,094  
Texas — 10.4%  

City of Austin Texas Water & Wastewater System Revenue, Refunding RB, 5.00%, 11/15/30

    6,000       7,238,760  

City of Grapevine Texas, GO, 5.00%, 2/15/33

    5,685       6,520,922  

City of Houston Texas, Refunding ARB, Subordinate Lien, Series A, AMT:

   

5.00%, 7/01/25

    1,500       1,663,230  

5.00%, 7/01/32

    1,010       1,116,717  

Dallas-Fort Worth International Airport, ARB, Joint Improvement, Series D, AMT, 5.00%, 11/01/38

    8,290       9,190,294  

Dallas/Fort Worth International Airport, Refunding RB, AMT:

   

Series E, 5.00%, 11/01/26

    2,185       2,404,265  

Series E, 5.00%, 11/01/27

    4,960       5,456,198  

Series F, 5.00%, 11/01/31

    6,345       6,940,669  

Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, AMT, 5.00%, 11/01/28

    1,000       1,109,310  

New Hope Cultural Education Facilities Finance Corp., RB, Jubilee Academic Center Project, Series A(b):

   

3.63%, 8/15/22

    105       105,686  

4.25%, 8/15/27

    160       161,312  

North Texas Tollway Authority, Refunding RB(d):

   

First Tier, Series A, 5.00%, 1/01/33

    1,000       1,178,470  

Second Tier, Series B, 5.00%, 1/01/31

    2,250       2,626,807  

Second Tier, Series B, 5.00%, 1/01/32

    1,000       1,175,810  

Red River Education Financing Corp., RB, 5.00%, 3/15/33

    1,340       1,506,589  

San Jacinto River Authority, RB, Special Project (AGM),
5.25%, 10/01/25

    2,910       3,117,367  

Socorro Independent School District, GO, Refunding (PSF-GTD):

   

5.00%, 8/15/20(a)

    2,410       2,658,061  

5.00%, 8/15/32

    90       98,484  

Via Metropolitan Transit Authority, Refunding RB:

   

5.25%, 8/01/28

    1,585       1,807,819  

5.25%, 8/01/29

    1,720       1,962,778  

5.25%, 8/01/33

    3,000       3,385,860  
   

 

 

 
      61,425,408  
Security   Par
(000)
    Value  
U.S. Virgin Islands — 0.9%  

Virgin Islands Public Finance Authority, Refunding RB, Series A (AGM), 5.25%, 10/01/24

  $ 5,000     $ 5,485,600  
   

 

 

 
Utah — 0.3%  

Utah Charter School Finance Authority, Refunding RB, Freedom Academy Foundation Project, 4.50%, 6/15/27(b)

    1,500       1,499,925  
   

 

 

 
Vermont — 1.0%  

University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/30

    5,565       5,989,276  
   

 

 

 
Washington — 0.3%  

Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 5.00%, 8/15/31(d)

    1,240       1,476,741  
   

 

 

 
West Virginia — 1.6%  

West Virginia Commissioner of Highways, RB, Surface Transportation Improvements, Series A, 5.00%, 9/01/29

    3,000       3,655,830  

West Virginia Hospital Finance Authority, Refunding RB, Charleston Area Medical Center, Inc., Series A,
5.13%, 9/01/23

    4,000       4,216,480  

West Virginia University, RB, West Virginia University Project, Series B, 5.00%, 10/01/30

    1,500       1,695,765  
   

 

 

 
      9,568,075  
Wisconsin — 1.3%  

Public Finance Authority, Refunding RB, AMT:

   

National Gypsum Co., 5.25%, 4/01/30

    2,410       2,598,390  

Wisconsin Airport Facilities, Senior Obligated Group, Series B, 5.25%, 7/01/28

    4,765       5,206,477  
   

 

 

 
      7,804,867  
   

 

 

 

Total Municipal Bonds — 139.1%

 

    825,576,218  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(h)

 

California — 3.1%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Subordinate Toll Bridge, 4.00%, 4/01/31(i)

    8,080       8,954,418  

Hudson Yards Infrastructure Corp., Refunding RB, Series A, 5.00%, 2/15/29

    7,995       9,758,883  
   

 

 

 
      18,713,301  
Connecticut — 2.0%  

State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group,
5.00%, 12/01/33

    10,000       11,611,787  
   

 

 

 
Louisiana — 2.3%  

State of Louisiana, GO, Series A, 5.00%, 8/01/24

    12,000       13,749,090  
   

 

 

 
Massachusetts — 1.9%  

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System Issue, Series L,
5.00%, 7/01/31

    10,175       11,268,984  
   

 

 

 
Minnesota — 1.9%  

State Of Minnesota, GO, Various Purpose, Series A,
4.00%, 8/01/20(a)

    10,525       11,301,480  
   

 

 

 
New York — 8.1%  

City of New York New York, GO:

   

Sub-Series 1-I, 5.00%, 3/01/32

    7,009       8,145,194  

Refunding Series E, 5.00%, 8/01/27

    3,507       3,734,419  

Metropolitan Transportation Authority, Refunding RB, Series B, 5.25%, 11/15/19(a)

    4,001       4,328,611  

Port Authority of New York & New Jersey, RB, Consolidated, Series106th, 5.00%, 10/15/26

    5,530       6,213,978  
 

 

 

58    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Shares/Par
(000)
    Value  
New York (continued)  

Port Authority of New York & New Jersey, Refunding RB, 178th Series, AMT, 5.00%, 12/01/32

  $ 4,009     $ 4,564,503  

Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 5.00%, 10/15/31

    5,010       5,985,981  

State of New York Dormitory Authority, Refunding RB, Series E, 5.25%, 3/15/33

    7,000       8,515,745  

State of New York Urban Development Corp., RB, State Personal Income Tax, Series A-1, 5.00%, 3/15/32

    5,501       6,349,500  
   

 

 

 
      47,837,931  
Texas — 1.4%  

Pflugerville Independent School District, GO, Unlimited Tax, School Building (PSF-GTD), 5.00%, 2/15/39

    7,500       8,575,975  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 20.7%

 

    123,058,548  
   

 

 

 

Total Long-Term Investments — 159.8%
(Cost — $898,006,791)

 

    948,634,766  
   

 

 

 

Short-Term Securities

 

BlackRock Liquidity Funds, MuniCash, Institutional Class,
0.74%(j)(k)

    11,197,790       11,201,149  
   

 

 

 

Total Short-Term Securities — 1.9%
(Cost — $11,201,149)

 

    11,201,149  
   

 

 

 

Total Investments — 161.7%
(Cost — $909,207,940)

 

    959,835,915  

Liabilities in Excess of Other Assets — (1.5)%

 

    (9,168,421

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (11.8)%

 

    (69,870,623

VMTP Shares at Liquidation Value — (48.4)%

 

    (287,100,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 593,696,871  
   

 

 

 
(a)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)  Variable rate security. Rate shown is the rate in effect as of period end.
(d)  When-issued security.
(e)  Non-income producing security.
(f)  Issuer filed for bankruptcy and/or is in default.
(g)  Security is collateralized by municipal bonds or U.S. Treasury obligations.
(h)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(i)  All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expires on April 1, 2025 is $6,226,089. See Note 4 of the Notes to Financial Statements for details.
(j)  Annualized 7-day yield as of period end.
 
(k)  During the period ended October 31, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated    Shares
Held at
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     4,693,275        6,504,515        11,197,790      $ 11,201,149      $ 27,723      $ 1,617      $ (180
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes net capital gain distributions, if applicable.  

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     (213        12/19/17        $ 26,612        $ 412,041  

Long U.S. Treasury Bond

     (78        12/19/17          11,893          228,057  

5-Year U.S. Treasury Note

     (154        12/29/17          18,047          177,583  
                 

 

 

 
     $ 817,681  
                 

 

 

 

 

 

SCHEDULES OF INVESTMENTS      59  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 817,681      $      $ 817,681  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.  

For the six months ended October 31, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ (860,106    $      $ (860,106
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 1,457,164      $      $ 1,457,164  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 783,906 (a) 

Average notional value of contracts — short

   $ 56,379,777  

 

  (a)  Actual amounts for the period are shown due to limited outstanding derivative financial instruments as of each quarter end.  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 948,634,766        $        $ 948,634,766  

Short-Term Securities

     11,201,149                        11,201,149  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 11,201,149        $ 948,634,766        $        $ 959,835,915  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 817,681        $        $        $ 817,681  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each state or political subdivision.  
  (b)  Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.  

 

 

60    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $        $ (69,726,850      $        $ (69,726,850

VMTP Shares at Liquidation Value

              (287,100,000                 (287,100,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (356,826,850      $        $ (356,826,850
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      61  


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   
Alabama — 1.6%  

County of Jefferson Alabama Sewer, Refunding RB:

   

Senior Lien, Series A (AGM), 5.00%, 10/01/44

  $ 805     $ 894,444  

Sub-Lien, Series D, 6.00%, 10/01/42

    3,575       4,170,881  
   

 

 

 
      5,065,325  
Alaska — 0.3%  

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 4.63%, 6/01/23

    850       874,276  
   

 

 

 
Arizona — 0.5%  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 7/01/46(a)

    1,685       1,749,704  
   

 

 

 
California — 13.6%  

California Health Facilities Financing Authority, RB:

   

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

    2,200       2,360,776  

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

    3,170       3,565,141  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33

    890       1,016,905  

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

   

5.25%, 8/15/39

    145       159,906  

5.25%, 8/15/49

    370       405,228  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 2/01/42

    225       251,267  

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45(a)

    1,495       1,610,653  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A(a):

   

5.00%, 12/01/41

    290       313,945  

5.00%, 12/01/46

    455       488,306  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:

   

Senior, 5.00%, 5/15/40

    5,930       6,444,546  

5.25%, 5/15/39

    800       849,800  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40

    360       439,088  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior Series A-1:

   

5.13%, 6/01/47

    2,165       2,129,343  

5.75%, 6/01/47

    1,630       1,629,951  

San Marcos Unified School District, GO, CAB, Election of 2010, Series B, 0.00%, 8/01/42(b)

    2,000       789,780  

State of California, GO, Various Purposes:

   

6.00%, 3/01/33

    2,525       2,810,729  

6.50%, 4/01/33

    14,925       16,063,479  

State of California Public Works Board, LRB, Various Capital Projects:

   

Series I, 5.00%, 11/01/38

    775       889,723  

Sub-Series I-1, 6.38%, 11/01/19(c)

    1,185       1,309,638  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 6/01/25

    595       595,363  
   

 

 

 
      44,123,567  
Colorado — 0.3%  

Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33

    1,060       1,102,845  
   

 

 

 
Security   Par
(000)
    Value  
Connecticut — 1.6%  

Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, Series A,
5.00%, 11/15/40

  $ 1,375     $ 1,468,046  

Connecticut State Health & Educational Facility Authority, Refunding RB, Wesleyan University, Series G,
5.00%, 7/01/20(c)

    3,385       3,723,060  
   

 

 

 
      5,191,106  
Delaware — 2.1%  

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

    1,125       1,191,397  

Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 6/01/55

    1,165       1,311,813  

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

    4,065       4,199,064  
   

 

 

 
      6,702,274  
District of Columbia — 3.9%  

District of Columbia, Refunding RB:

   

Georgetown University, 5.00%, 4/01/35

    435       511,342  

Georgetown University Issue, 5.00%, 4/01/42

    500       579,695  

Kipp Charter School, Series A, 6.00%, 7/01/43

    240       274,147  

Metropolitan Washington Airports Authority, Refunding ARB, Dulles Toll Road, CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/35(b)

    6,515       3,384,152  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road:

   

1st Senior Lien, Series A, 5.25%, 10/01/44

    1,500       1,595,730  

CAB, 2nd Senior Lien, Series B (AGC),
0.00%, 10/01/33(b)

    6,590       3,746,679  

CAB, 2nd Senior Lien, Series B (AGC),
0.00%, 10/01/34(b)

    4,830       2,624,042  
   

 

 

 
      12,715,787  
Florida — 3.3%  

Celebration Pointe Community Development District, Special Assessment Bonds, County of Alachua Florida(a):

   

5.00%, 5/01/32

    470       477,459  

5.00%, 5/01/48

    1,175       1,178,525  

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 5/01/45

    1,340       1,492,090  

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

    1,165       1,289,352  

Mid-Bay Florida Bridge Authority, RB, Springing Lien,
Series A, 7.25%, 10/01/21(c)

    3,015       3,670,250  

Village Community Development District No.10, Special Assessment Bonds, 5.13%, 5/01/43

    2,250       2,517,030  
   

 

 

 
      10,624,706  
Georgia — 1.6%  

City of Atlanta Georgia Water & Wastewater, Refunding RB, 5.00%, 11/01/40

    600       692,214  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

    515       603,575  

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

    130       139,723  

Metropolitan Atlanta Rapid Transit Authority, RB, Sales Tax, 3rd Indenture, Series A, 5.00%, 7/01/19(c)

    3,465       3,684,161  
   

 

 

 
      5,119,673  
Hawaii — 0.5%  

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

    1,355       1,469,023  
   

 

 

 
 

 

 

62    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Idaho — 0.3%  

Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series A, 5.00%, 12/01/46

  $ 745     $ 844,480  
   

 

 

 
Illinois — 20.9%  

City of Chicago Illinois, GO, Project, Series A,
5.00%, 1/01/34

    1,750       1,813,017  

City of Chicago Illinois, GO, Refunding, Project, Series A, 5.25%, 1/01/32

    4,555       4,834,950  

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

    786       790,362  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series C, 6.50%, 1/01/21(c)

    5,865       6,803,224  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

    1,050       1,126,713  

City of Chicago Illinois Waterworks, Refunding RB:

   

2nd Lien (AGM), 5.25%, 11/01/18(c)

    190       197,644  

2nd Lien (AGM), 5.25%, 11/01/33

    1,135       1,168,051  

2nd Lien Project, 5.00%, 11/01/42

    915       973,542  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

    805       861,060  

Illinois Finance Authority, RB, Advocate Health Care Network, Series D, 6.50%, 11/01/18(c)

    5,000       5,265,500  

Illinois Finance Authority, Refunding RB:

   

Central Dupage Health, Series B, 5.50%, 11/01/39

    1,610       1,735,113  

Presence Health Network, Series C, 4.00%, 2/15/41

    3,230       3,274,897  

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

   

Series B (AGM), 5.00%, 6/15/50

    4,315       4,572,088  

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

    2,500       2,512,650  

Railsplitter Tobacco Settlement Authority, RB:

   

5.50%, 6/01/23

    440       497,671  

6.00%, 6/01/28

    1,140       1,284,575  

Regional Transportation Authority, RB:

   

Series A (AMBAC), 7.20%, 11/01/20

    510       555,135  

Series A (NPFGC), 6.70%, 11/01/21

    3,325       3,680,476  

Series C (NPFGC), 7.75%, 6/01/20

    1,400       1,539,902  

State of Illinois, GO:

   

5.00%, 2/01/39

    1,540       1,601,831  

Series A, 5.00%, 4/01/35

    3,000       3,125,370  

Series A, 5.00%, 4/01/38

    3,490       3,630,682  

State of Illinois, RB, Build Illinois, Series B,
5.25%, 6/15/19(c)

    630       671,423  

State of Illinois Toll Highway Authority, RB:

   

Senior, Series C, 5.00%, 1/01/36

    2,615       2,973,255  

Senior, Series C, 5.00%, 1/01/37

    2,800       3,179,736  

Series A, 5.00%, 1/01/38

    1,980       2,207,165  

State of Illinois Toll Highway Authority, Refunding RB,
Series B, 5.50%, 1/01/18(c)

    3,000       3,021,990  

University of Illinois, RB, Auxiliary Facilities System,
Series A, 5.00%, 4/01/44

    985       1,076,290  

Village of Hodgkins Illinois, RB, Metropolitan Biosolids Management LLC Project, AMT, 6.00%, 11/01/23

    2,800       2,804,760  
   

 

 

 
      67,779,072  
Indiana — 4.5%  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

   

6.75%, 1/01/34

    790       935,526  

7.00%, 1/01/44

    1,905       2,267,026  

Indiana Finance Authority, RB, Series A:

   

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

    3,280       3,713,715  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

    450       484,389  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48

    1,430       1,534,719  
Security   Par
(000)
    Value  
Indiana (continued)  

Indiana Finance Authority, RB, Series A (continued):

   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 1/01/51

  $ 405     $ 438,728  

Sisters of St. Francis Health Services, 5.25%, 11/01/39

    840       900,564  

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A:

   

5.75%, 5/01/19(c)

    2,290       2,441,323  

5.75%, 5/01/31

    505       536,088  

Indianapolis Local Public Improvement Bond Bank, RB,
Series A, 5.00%, 1/15/40

    1,270       1,431,874  
   

 

 

 
      14,683,952  
Iowa — 1.5%  

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:

   

5.00%, 12/01/19

    480       497,443  

5.50%, 12/01/22

    2,340       2,396,137  

5.25%, 12/01/25

    460       490,236  

5.88%, 12/01/26(a)

    410       435,227  

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

    975       1,030,926  
   

 

 

 
      4,849,969  
Kentucky — 0.6%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45

    995       1,068,779  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43(d)

    1,200       1,048,500  
   

 

 

 
      2,117,279  
Louisiana — 2.7%  

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

    3,320       3,744,263  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

   

5.50%, 5/15/30

    1,020       1,102,834  

5.25%, 5/15/31

    870       944,637  

5.25%, 5/15/32

    1,110       1,215,661  

5.25%, 5/15/33

    1,205       1,308,522  

5.25%, 5/15/35

    505       549,384  
   

 

 

 
      8,865,301  
Maryland — 0.9%  

City of Baltimore Maryland, Refunding RB, Convention Center Hotel, 5.00%, 9/01/34

    430       495,609  

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

    435       463,588  

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

    750       792,158  

Maryland Health & Higher Educational Facilities Authority, RB:

   

Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    420       481,278  

University of Maryland Medical System, Series B (NPFGC), 7.00%, 7/01/22(e)

    660       777,823  
   

 

 

 
      3,010,456  
Massachusetts — 1.9%  

Commonwealth of Massachusetts, GO, Series E,
3.00%, 4/01/44

    1,370       1,237,138  

Massachusetts Development Finance Agency, Refunding RB, Covanta Energy Project, Series C, AMT,
5.25%, 11/01/42(a)

    2,205       2,206,477  

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

    990       1,041,262  
 

 

 

SCHEDULES OF INVESTMENTS      63  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts (continued)  

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

  $ 1,700     $ 1,735,887  
   

 

 

 
      6,220,764  
Michigan — 5.1%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39

    4,425       4,905,953  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:

   

5.50%, 5/15/20(c)

    760       839,177  

5.50%, 5/15/36

    620       672,551  

Michigan Finance Authority, Refunding RB:

   

Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

    880       957,238  

Henry Ford Health System, 4.00%, 11/15/46

    1,420       1,449,195  

Michigan State Hospital Finance Authority, Refunding RB, McLaren Health Care, Series A, 5.75%, 5/15/18(c)

    7,560       7,749,832  
   

 

 

 
      16,573,946  
Mississippi — 1.4%  

County of Lowndes Mississippi, Refunding RB, Solid Waste Disposal & Pollution Control, Weyerhaeuser Co. Project, Series A, 6.80%, 4/01/22

    3,000       3,489,480  

University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/19(c)

    1,065       1,146,057  
   

 

 

 
      4,635,537  
Missouri — 0.2%  

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien,
Series A, 5.00%, 10/01/44

    255       289,861  

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43

    245       267,518  
   

 

 

 
      557,379  
Nebraska — 0.8%  

Central Plains Energy Project Nebraska, RB, Gas Project No. 3:

   

5.25%, 9/01/37

    825       911,378  

5.00%, 9/01/42

    1,445       1,571,972  
   

 

 

 
      2,483,350  
New Jersey — 6.2%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,675       1,755,836  

5.25%, 11/01/44

    1,525       1,591,139  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45(a)

    1,085       1,090,262  

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 5.25%, 9/15/29

    1,955       2,140,471  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 4/01/31

    2,240       2,515,968  

New Jersey State Turnpike Authority, RB:

   

Series A, 5.00%, 1/01/43

    1,985       2,215,081  

Series E, 5.00%, 1/01/45

    2,615       2,944,412  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.00%, 6/15/44

    445       472,497  

Transportation Program, Series AA, 5.00%, 6/15/44

    825       869,509  

Transportation System, Series A, 5.50%, 6/15/41

    1,635       1,758,442  

Transportation System, Series B, 5.25%, 6/15/36

    2,460       2,615,398  
   

 

 

 
      19,969,015  
New York — 14.7%  

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

    6,700       7,026,223  
Security   Par
(000)
    Value  
New York (continued)  

City of New York New York Transitional Finance Authority Future Tax Secured, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42

  $ 1,960     $ 2,189,751  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A,
6.25%, 6/01/41(a)

    1,800       1,862,550  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45

    1,960       1,922,525  

Hudson Yards Infrastructure Corp., Refunding RB, Series A, 5.00%, 2/15/39

    920       1,074,624  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(c)

    7,015       7,407,910  

6.50%, 11/15/18(c)

    580       612,486  

6.50%, 11/15/28

    1,810       1,913,315  

Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56

    1,045       1,173,086  

New York Liberty Development Corp., RB, World Trade Center Port Authority Consolidated, 5.25%, 12/15/43

    10,735       12,125,934  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

    1,220       1,311,671  

3 World Trade Center Project, Class 1,
5.00%, 11/15/44(a)

    2,860       3,108,734  

3 World Trade Center Project, Class 2,
5.15%, 11/15/34(a)

    340       375,833  

3 World Trade Center Project, Class 2,
5.38%, 11/15/40(a)

    850       945,820  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project,
Series 8:

   

6.00%, 12/01/36

    1,165       1,297,414  

6.00%, 12/01/42

    1,250       1,385,775  

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 205th Series, 5.00%, 11/15/47

    1,565       1,830,064  
   

 

 

 
      47,563,715  
North Carolina — 0.8%  

North Carolina Medical Care Commission, Refunding RB:

   

1st Mortgage, Retirement Facilities Whitestone Project,
Series A, 7.75%, 3/01/41

    595       656,463  

Carolina Village Project, 6.00%, 4/01/38

    2,000       2,028,480  
   

 

 

 
      2,684,943  
Ohio — 1.4%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.88%, 6/01/47

    3,230       3,023,959  

County of Franklin Ohio, RB:

   

Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40

    660       732,118  

Trinity Health Credit Group, Series 2017,
5.00%, 12/01/46

    400       453,412  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 6/30/53

    275       302,497  
   

 

 

 
      4,511,986  
Pennsylvania — 1.8%  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/42

    635       698,424  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 6/30/42

    850       942,505  

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

    1,890       2,017,027  
 

 

 

64    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Pennsylvania (continued)  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

  $ 1,035     $ 1,096,541  

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

    1,105       1,251,037  
   

 

 

 
      6,005,534  
Puerto Rico — 1.1%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 5/15/39

    1,855       1,820,534  

5.63%, 5/15/43

    1,770       1,734,175  
   

 

 

 
      3,554,709  
Rhode Island — 2.0%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 6/01/35

    820       883,698  

Series B, 4.50%, 6/01/45

    2,645       2,649,972  

Series B, 5.00%, 6/01/50

    2,945       3,038,592  
   

 

 

 
      6,572,262  
South Carolina — 4.8%  

State of South Carolina Ports Authority, ARB:

   

5.25%, 7/01/40

    3,280       3,552,437  

AMT, 5.25%, 7/01/55

    1,295       1,446,126  

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

    6,180       6,974,254  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

    3,135       3,539,321  
   

 

 

 
      15,512,138  
Tennessee — 0.6%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A,
5.25%, 1/01/45

    995       1,068,779  

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 7/01/40

    690       775,526  
   

 

 

 
      1,844,305  
Texas — 7.2%  

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.25%, 1/01/21(c)

    2,140       2,469,432  

City of Dallas Texas Waterworks & Sewer System Revenue, Refunding RB:

   

5.00%, 10/01/20(c)

    235       259,426  

5.00%, 10/01/35

    275       301,760  

City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 7/01/29

    965       1,057,534  

Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 8/15/43

    745       863,939  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/23(c)

    455       575,266  

County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18(c)

    2,000       2,131,060  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project,
5.00%, 10/01/49

    1,000       1,068,570  

Fort Bend County Industrial Development Corp., RB, NRG Energy Inc. Project, Series B, 4.75%, 11/01/42

    670       691,025  

North Texas Tollway Authority, Refunding RB, Series A:

   

1st Tier System, 6.25%, 1/01/19(c)

    5,690       6,023,775  

1st Tier System, 6.25%, 1/01/39

    1,310       1,380,714  

5.00%, 1/01/38

    925       1,045,971  
Security   Par
(000)
    Value  
Texas (continued)  

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

   

LBJ Infrastructure Group LLC, 7.00%, 6/30/40

  $ 2,000     $ 2,257,260  

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

    2,775       3,077,475  
   

 

 

 
      23,203,207  
Utah — 1.2%  

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

    2,780       2,930,732  

Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 7/01/47

    915       1,048,480  
   

 

 

 
      3,979,212  
Virginia — 1.2%  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 1/01/32

    1,615       1,781,603  

6.00%, 1/01/37

    1,940       2,193,267  
   

 

 

 
      3,974,870  
Washington — 7.3%  

Central Puget Sound Regional Transit Authority, RB,
Series A(c):

   

(AGM), 5.00%, 11/01/17

    7,700       7,700,000  

5.00%, 11/01/17

    4,000       4,000,000  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT:

   

5.00%, 4/01/40

    755       841,153  

5.00%, 5/01/42

    1,465       1,688,574  

State of Washington, GO, Series D, 5.00%, 2/01/42

    2,555       2,969,344  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45

    2,290       2,525,664  

Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, 6.38%, 10/01/36

    3,700       3,861,542  
   

 

 

 
      23,586,277  
Wisconsin — 3.7%  

State of Wisconsin, Refunding RB, Series A,
6.00%, 5/01/19(c)

    7,100       7,611,910  

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

    2,465       2,638,610  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Medical College of Wisconsin, Inc., 4.00%, 12/01/46

    1,810       1,865,223  
   

 

 

 
      12,115,743  
   

 

 

 

Total Municipal Bonds — 124.1%

 

    402,437,687  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(f)

 

Alabama — 0.5%  

Auburn University, Refunding RB, Series A, 4.00%, 6/01/41

    1,680       1,764,655  
   

 

 

 
California — 7.5%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area:

   

Toll Bridge Subordinate, 4.00%, 4/01/42(g)

    3,056       3,234,577  

Series F-1, 5.63%, 4/01/44(c)

    3,271       3,480,449  

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/18(c)(g)

    2,610       2,708,545  

City & County of San Francisco California Public Utilities Commission Water Revenue, RB, Series B,
5.00%, 11/01/19(c)

    9,480       10,206,515  
 

 

 

SCHEDULES OF INVESTMENTS      65  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
California (continued)  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No.2 Bonds, 5.00%, 10/01/47

  $ 3,075     $ 3,548,740  

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/19(c)

    1,077       1,153,787  
   

 

 

 
      24,332,613  
Colorado — 0.7%  

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

    2,129       2,238,971  
   

 

 

 
Florida — 1.9%  

County of Miami-Dade Florida Water & Sewer System Revenue, RB, 5.00%, 10/01/34

    5,679       6,211,211  
   

 

 

 
Maryland — 0.7%  

Maryland State Transportation Authority, RB, Transpotation Facilities Projects (AGM), 5.00%, 7/01/41

    2,290       2,349,277  
   

 

 

 
Massachusetts — 0.8%  

Massachusetts School Building Authority, RB, Series B, 5.00%, 10/15/41

    2,266       2,540,706  
   

 

 

 
New Hampshire — 0.7%  

New Hampshire Health and Education Facilities Authority Act, RB, Doartmouth College Issue,
5.25%, 6/01/19(c)(g)

    2,009       2,135,876  
   

 

 

 
New York — 8.0%  

City of New York New York Water & Sewer System, Refunding RB:

   

2nd General Resolution, Series FF-2,
5.50%, 6/15/40

    1,575       1,682,410  

Second Generation, 5.00%, 6/15/18(c)

    927       949,005  

Second Generation, 5.00%, 6/15/37

    5,372       5,498,040  

Hudson Yards Infrastructure Corp., RB, Series A,
5.75%, 2/15/47(g)

    1,610       1,829,326  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    4,720       5,518,035  

New York Liberty Development Corp., Refunding RB, World Trade Center Project, 5.75%, 11/15/51(g)

    6,440       7,406,093  

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

    2,595       3,004,707  
   

 

 

 
      25,887,616  
North Carolina — 0.9%  

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University, Series B,
5.00%, 10/01/55

    2,550       2,901,721  
   

 

 

 
Ohio — 5.2%  

Ohio Higher Educational Facility Commission, Refunding RB, Cleveland Clinic Health System, Series A,
5.25%, 1/01/18(c)

    2,400       2,412,720  

State of Ohio, Refunding RB, Cleveland Clinic Health, Series A, 5.50%, 1/01/19(c)

    13,843       14,528,195  
   

 

 

 
      16,940,915  
Pennsylvania — 0.9%  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    2,340       2,750,553  
   

 

 

 
South Carolina — 1.6%  

State of South Carolina Public Service Authority, Refunding RB, Series A(c)(g):

   

5.50%, 1/01/19

    398       418,082  

5.50%, 1/01/19

    4,603       4,834,204  
   

 

 

 
      5,252,286  
Security   Shares/Par
(000)
    Value  
Texas — 2.7%  

City of San Antonio Texas Electric & Gas Systems Revenue, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43

  $ 2,520     $ 2,840,689  

County of Harris Metropolitan Transit Authority, RB,
Series A, 5.00%, 11/01/41

    3,400       3,793,176  

University of Texas System, Refunding RB, Financing System, Series B, 5.00%, 8/15/43

    1,831       2,080,301  
   

 

 

 
      8,714,166  
Wisconsin — 0.8%  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group: Series C, 5.25%, 4/01/19(c)(g)

    2,499       2,641,470  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 32.9%

 

    106,662,036  
   

 

 

 

Total Long-Term Investments — 157.0%
(Cost — $473,147,043)

 

    509,099,723  
   

 

 

 

Short-Term Securities — 2.5%

   

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.74%(h)(i)

    8,221,784       8,224,251  
   

 

 

 

Total Short-Term Securities — 2.5%
(Cost — $8,224,035)

 

    8,224,251  
   

 

 

 

Total Investments — 159.5%
(Cost — $481,371,078)

 

    517,323,974  

Other Assets Less Liabilities — 2.3%

 

    7,268,570  

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

 

    (60,230,924

VMTP Shares at Liquidation Value — (43.2)%

 

    (140,000,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 324,361,620  
   

 

 

 

 

(a)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)  Zero-coupon bond.
(c)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(d)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.
(e)  Security is collateralized by municipal bonds or U.S. Treasury obligations.
(f)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(g)  All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between May 7, 2018 to April 1, 2025 is $15,744,299. See Note 4 of the Notes to Financial Statements for details.
(h)  Annualized 7-day yield as of period end.
 

 

 

66    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniVest Fund II, Inc. (MVT)

 

(i)  During the six months ended October 31, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated    Shares
Held at
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     16,387        8,205,397        8,221,784      $ 8,224,251      $ 19,629      $ 1,550      $ 216  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes net capital gain distributions, if applicable.  

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     (40        12/19/17        $ 4,998        $ 74,380  

Long U.S. Treasury Bond

     (48        12/19/17          7,319          149,724  

Ultra Long U.S. Treasury Bond

     (18        12/19/17          2,966          67,085  

5-Year U.S. Treasury Note

     (55        12/29/17          6,445          65,493  
                 

 

 

 
     $ 356,682  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 356,682      $      $ 356,682  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.  

For the six months ended October 31, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ (488,477    $      $ (488,477
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 565,745      $      $ 565,745  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 20,113,899  

For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

SCHEDULES OF INVESTMENTS      67  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

   BlackRock MuniVest Fund II, Inc. (MVT)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 509,099,723        $             —        $ 509,099,723  

Short-Term Securities

     8,224,251                        8,224,251  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 8,224,251        $ 509,099,723        $             —        $ 517,323,974  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 356,682        $             —        $             —        $ 356,682  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each state or political subdivision.  
  (b)  Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.  

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $             —        $ (60,065,874      $             —        $ (60,065,874

VMTP Shares at Liquidation Value

              (140,000,000                 (140,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (200,065,874      $             —        $ (200,065,874
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

68    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Assets and Liabilities

October 31, 2017 (Unaudited)

 

     BlackRock
MuniAssets
Fund, Inc.
(MUA)
    BlackRock
MuniEnhanced
Fund, Inc.
(MEN)
    BlackRock
MuniHoldings
Fund, Inc.
(MHD)
    BlackRock
MuniHoldings
Fund II, Inc.
(MUH)
 

ASSETS

       

Investments at value — unaffiliated(a)

  $ 566,588,420     $ 564,263,944     $ 378,375,380     $ 273,296,195  

Investments at value — affiliated(b)

    3,876,148       5,205,183       5,854,033       4,265,161  

Cash

          2,766,901              

Cash pledged for futures contracts

    308,950       302,900       240,550       170,200  

Receivables:

       

Interest — unaffiliated

    9,935,421       7,106,734       5,567,465       3,975,818  

Investments sold

    443,700       1,200,374       29,060       24,558  

Variation margin on futures contracts

    7,648       6,500       5,367       3,625  

Dividends — affiliated

    3,224       5,390       3,427       2,227  

Prepaid expenses

    3,546       17,503       16,773       16,568  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

    581,167,057       580,875,429       390,092,055       281,754,352  
 

 

 

   

 

 

   

 

 

   

 

 

 

ACCRUED LIABILITIES

       

Bank overdraft

                136,351       89,597  

Payables:

       

Income dividends — Common Shares

    2,068,515       1,676,392       1,057,708       765,199  

Investments purchased

    1,742,987       8,160,124              

Investment advisory fees

    269,575       241,976       181,406       131,068  

Interest expense and fees

    204,797       192,516       165,913       126,760  

Other accrued expenses

    130,572       118,093       94,730       80,484  

Variation margin on futures contracts

    10,156       9,250       8,656       6,125  

Officer’s and Directors’ fees

    5,070       4,598       2,777       2,038  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total accrued liabilities

    4,431,672       10,402,949       1,647,541       1,201,271  
 

 

 

   

 

 

   

 

 

   

 

 

 

OTHER LIABILITIES

       

TOB Trust Certificates

    67,756,523       74,326,061       63,115,775       48,150,135  

VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)

          142,264,647              

VMTP Shares, at liquidation value of $100,000 per share(c)(d)

                83,700,000       55,000,000  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total other liabilities

    67,756,523       216,590,708       146,815,775       103,150,135  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    72,188,195       226,993,657       148,463,316       104,351,406  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 508,978,862     $ 353,881,772     $ 241,628,739     $ 177,402,946  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

       

Paid-in capital(e)(f)(g)

  $ 479,883,213     $ 311,566,043     $ 211,660,385     $ 155,975,320  

Undistributed net investment income

    713,190       3,317,697       1,286,483       1,783,776  

Accumulated net realized loss

    (7,693,610     (3,784,454     (1,189,748     (1,280,175

Net unrealized appreciation (depreciation)

    36,076,069       42,782,486       29,871,619       20,924,025  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 508,978,862     $ 353,881,772     $ 241,628,739     $ 177,402,946  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value per Common Share

  $ 14.15     $ 11.93     $ 17.03     $ 15.65  
 

 

 

   

 

 

   

 

 

   

 

 

 

(a)   Investments at cost — unaffiliated

  $ 530,889,788     $ 521,863,363     $ 348,801,863     $ 252,578,396  

(b)   Investments at cost — affiliated

  $ 3,876,148     $ 5,205,183     $ 5,854,033     $ 4,265,161  

(c)   Preferred Shares outstanding, par value $0.10 per share

          1,425       837       550  

(d)   Preferred Shares authorized, including Auction Market Preferred Shares (“AMPS”)

          8,905       5,837       4,030  

(e)   Par value per Common Share

  $ 0.10     $ 0.10     $ 0.10     $ 0.10  

(f)    Common Shares outstanding

    35,974,169       29,672,170       14,191,210       11,336,282  

(g)   Common Shares authorized

    200,000,000       199,991,095       199,994,163       199,995,970  

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      69  


Statements of Assets and Liabilities  (continued)

October 31, 2017 (Unaudited)

 

    

BlackRock
MuniHoldings
Quality

Fund, Inc.
(MUS)

    BlackRock
Muni
Intermediate
Duration
Fund, Inc.
(MUI)
    BlackRock
MuniVest
Fund II, Inc.
(MVT)
 

ASSETS

     

Investments at value — unaffiliated(a)

  $ 294,948,497     $ 948,634,766     $ 509,099,723  

Investments at value — affiliated(b)

    525,539       11,201,149       8,224,251  

Cash

                 

Cash pledged for futures contracts

    131,150       535,900       276,050  

Receivables:

     

Interest — unaffiliated

    4,342,336       12,758,335       8,207,535  

Investments sold

    184,387       8,473,423       890,000  

Variation margin on futures contracts

    5,687       27,470       6,992  

Dividends — affiliated

    890       6,861       4,973  

Prepaid expenses

    16,627       18,776       17,098  
 

 

 

   

 

 

   

 

 

 

Total assets

    300,155,113       981,656,680       526,726,622  
 

 

 

   

 

 

   

 

 

 

ACCRUED LIABILITIES

     

Bank overdraft

    141,727       467,698       228,066  

Payables:

     

Income dividends — Common Shares

    826,661       1,895,665       1,551,985  

Investments purchased

    1,052,870       27,674,221        

Investment advisory fees

    130,980       443,936       222,555  

Interest expense and fees

    67,809       143,773       165,050  

Other accrued expenses

    80,240       169,149       118,664  

Variation margin on futures contracts

    4,578       7,313       9,000  

Officer’s and Directors’ fees

    2,200       331,204       3,808  
 

 

 

   

 

 

   

 

 

 

Total accrued liabilities

    2,307,065       31,132,959       2,299,128  
 

 

 

   

 

 

   

 

 

 

OTHER LIABILITIES

     

TOB Trust Certificates

    29,123,326       69,726,850       60,065,874  

VMTP Shares, at liquidation value of $100,000 per share(c)(d)

    87,000,000       287,100,000       140,000,000  
 

 

 

   

 

 

   

 

 

 

Total other liabilities

    116,123,326       356,826,850       200,065,874  
 

 

 

   

 

 

   

 

 

 

Total liabilities

    118,430,391       387,959,809       202,365,002  
 

 

 

   

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 181,724,722     $ 593,696,871     $ 324,361,620  
 

 

 

   

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

     

Paid-in capital(e)(f)(g)

  $ 174,749,656     $ 543,452,920     $ 288,764,232  

Undistributed net investment income

    1,717,163       2,387,800       1,789,641  

Accumulated net realized loss

    (14,438,367     (3,589,506     (2,501,831

Net unrealized appreciation (depreciation)

    19,696,270       51,445,657       36,309,578  
 

 

 

   

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 181,724,722     $ 593,696,871     $ 324,361,620  
 

 

 

   

 

 

   

 

 

 

Net asset value per Common Share

  $ 13.96     $ 15.50     $ 15.26  
 

 

 

   

 

 

   

 

 

 

(a)   Investments at cost — unaffiliated

  $ 275,429,873     $ 898,006,791     $ 473,147,043  

(b)   Investments at cost — affiliated

  $ 525,539     $ 11,201,149     $ 8,224,035  

(c)   Preferred Shares outstanding, par value $0.10 per share

    870       2,871       1,400  

(d)   Preferred Shares authorized, including Auction Market Preferred Shares (“AMPS”)

    6,230       15,671       8,400  

(e)   Par value per Common Share

  $ 0.10     $ 0.10     $ 0.10  

(f)    Common Shares outstanding

    13,018,276       38,296,266       21,260,071  

(g)   Common Shares authorized

    199,993,770       199,984,329       199,991,600  

See notes to financial statements.

 

 

70    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Operations

Six Months Ended October 31, 2017 (Unaudited)

 

    

BlackRock
MuniAssets

Fund, Inc.
(MUA)

    BlackRock
MuniEnhanced
Fund, Inc.
(MEN)
    BlackRock
MuniHoldings
Fund, Inc.
(MHD)
    BlackRock
MuniHoldings
Fund II, Inc.
(MUH)
 

INVESTMENT INCOME

       

Interest — unaffiliated

  $ 14,641,371     $ 12,461,637     $ 8,835,731     $ 6,404,314  

Dividends — affiliated

    15,053       11,110       14,769       10,263  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    14,656,424       12,472,747       8,850,500       6,414,577  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory

    1,602,509       1,431,390       1,076,170       777,785  

Professional

    45,583       46,901       39,183       34,891  

Accounting services

    43,764       43,220       31,096       24,119  

Transfer agent

    30,950       20,217       13,578       12,001  

Officer and Directors

    27,781       19,862       13,259       9,752  

Custodian

    12,306       12,003       8,062       5,299  

Registration

    7,038       5,983       4,845       4,810  

Printing

    5,873       4,636       3,723       3,270  

Rating agency

          20,236       20,215       20,204  

Miscellaneous

    21,816       20,037       19,149       14,109  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    1,797,620       1,624,485       1,229,280       906,240  

Interest expense, fees and amortization of offering costs(a)

    528,981       1,772,963       1,243,139       866,226  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    2,326,601       3,397,448       2,472,419       1,772,466  

Less fees waived by the Manager

    (2,172     (1,630     (2,111     (1,475
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    2,324,429       3,395,818       2,470,308       1,770,991  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    12,331,995       9,076,929       6,380,192       4,643,586  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

    1,813,460       203,423       47,778       48,968  

Investments — affiliated

    515       785       472       447  

Futures contracts

    (570,618     (681,361     (439,239     (296,041
 

 

 

   

 

 

   

 

 

   

 

 

 
    1,243,357       (477,153     (390,989     (246,626
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated

    1,123,639       5,109,269       2,806,414       1,730,748  

Investments — affiliated

    (96     (217     (57     (71

Futures contracts

    616,931       853,033       536,468       333,041  
 

 

 

   

 

 

   

 

 

   

 

 

 
    1,740,474       5,962,085       3,342,825       2,063,718  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    2,983,831       5,484,932       2,951,836       1,817,092  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $ 15,315,826     $ 14,561,861     $ 9,332,028     $ 6,460,678  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  Related to TOB Trusts, VMTP Shares and/or VRDP Shares.

See notes to financial statements

 

 

FINANCIAL STATEMENTS      71  


Statements of Operations  (continued)

Six Months Ended October 31, 2017 (Unaudited)

 

     BlackRock
MuniHoldings
Quality Fund, Inc.
(MUS)
   

BlackRock Muni
Intermediate
Duration

Fund, Inc.
(MUI)

   

BlackRock
MuniVest

Fund II, Inc.
(MVT)

 

INVESTMENT INCOME

     

Interest — unaffiliated

  $ 6,668,252     $ 17,685,296     $ 12,261,024  

Dividends — affiliated

    10,336       27,723       19,629  
 

 

 

   

 

 

   

 

 

 

Total investment income

    6,678,588       17,713,019       12,280,653  
 

 

 

   

 

 

   

 

 

 

EXPENSES

     

Investment advisory

    829,151       2,617,115       1,323,626  

Professional

    36,088       61,807       46,173  

Accounting services

    25,019       63,495       41,610  

Transfer agent

    11,777       25,957       16,728  

Officer and Directors

    10,094       47,369       17,869  

Custodian

    7,392       19,872       11,248  

Registration

    4,793       7,506       4,971  

Printing

    3,280       6,625       4,427  

Rating agency

    20,216       20,288       20,235  

Miscellaneous

    13,779       23,970       17,747  
 

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    961,589       2,894,004       1,504,634  

Interest expense, fees and amortization of offering costs(a)

    1,027,553       3,130,359       1,748,602  
 

 

 

   

 

 

   

 

 

 

Total expenses

    1,989,142       6,024,363       3,253,236  

Less fees waived by the Manager

    (50,488     (3,941     (2,796
 

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    1,938,654       6,020,422       3,250,440  
 

 

 

   

 

 

   

 

 

 

Net investment income

    4,739,934       11,692,597       9,030,213  
 

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

     

Net realized gain (loss) from:

     

Investments — unaffiliated

    198,225       811,251       170,837  

Investments — affiliated

    1,222       1,617       1,550  

Futures contracts

    (296,675     (860,106     (488,477
 

 

 

   

 

 

   

 

 

 
    (97,228     (47,238     (316,090
 

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

     

Investments — unaffiliated

    77,073       11,483,084       1,421,623  

Investments — affiliated

          (180     216  

Futures contracts

    309,747       1,457,164       565,745  
 

 

 

   

 

 

   

 

 

 
    386,820       12,940,068       1,987,584  
 

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    289,592       12,892,830       1,671,494  
 

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $ 5,029,526     $ 24,585,427     $ 10,701,707  
 

 

 

   

 

 

   

 

 

 

 

(a)  Related to TOB Trusts and/or VMTP Shares.

See notes to financial statements.

 

 

72    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Changes in Net Assets

 

    BlackRock MuniAssets Fund, Inc.
(MUA)
          BlackRock MuniEnhanced Fund, Inc.
(MEN)
 
     Six Months Ended
10/31/17
(Unaudited)
    Year Ended
04/30/17
           Six Months Ended
10/31/17
(Unaudited)
    Year Ended
04/30/17
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:

         

OPERATIONS

         

Net investment income

  $ 12,331,995     $ 25,298,067       $ 9,076,929     $ 19,135,096  

Net realized gain (loss)

    1,243,357       (6,103,677       (477,153     2,216,473  

Net change in unrealized appreciation (depreciation)

    1,740,474       (7,831,985       5,962,085       (23,080,927
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

    15,315,826       11,362,405         14,561,861       (1,729,358
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)

         

From net investment income

    (12,403,610     (24,955,313       (10,054,052     (20,244,836
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Reinvestment of common distributions

    760,953       1,201,178         336,699       669,394  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

Total increase (decrease) in net assets applicable to Common Shareholders

    3,673,169       (12,391,730       4,844,508       (21,304,800

Beginning of period

    505,305,693       517,697,423         349,037,264       370,342,064  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 508,978,862     $ 505,305,693       $ 353,881,772     $ 349,037,264  
 

 

 

   

 

 

     

 

 

   

 

 

 

Undistributed net investment income, end of period

  $ 713,190     $ 784,805       $ 3,317,697     $ 4,294,820  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      73  


Statements of Changes in Net Assets  (continued)

 

    BlackRock MuniHoldings Fund, Inc.
(MHD)
          BlackRock MuniHoldings Fund II, Inc.
(MUH)
 
     Six Months Ended
10/31/17
(Unaudited)
    Year Ended
04/30/17
           Six Months Ended
10/31/17
(Unaudited)
    Year Ended
04/30/17
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:

         

OPERATIONS

         

Net investment income

  $ 6,380,192     $ 13,423,611       $ 4,643,586     $ 9,771,566  

Net realized gain (loss)

    (390,989     1,929,867         (246,626     1,537,795  

Net change in unrealized appreciation (depreciation)

    3,342,825       (17,165,235       2,063,718       (12,368,643
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

    9,332,028       (1,811,757       6,460,678       (1,059,282
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)

         

From net investment income

    (6,798,857     (13,833,972       (4,985,284     (10,145,858
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Reinvestment of common distributions

    411,605       465,879         290,507       288,874  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

Total increase (decrease) in net assets applicable to Common Shareholders

    2,944,776       (15,179,850       1,765,901       (10,916,266

Beginning of period

    238,683,963       253,863,813         175,637,045       186,553,311  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 241,628,739     $ 238,683,963       $ 177,402,946     $ 175,637,045  
 

 

 

   

 

 

     

 

 

   

 

 

 

Undistributed net investment income, end of period

  $ 1,286,483     $ 1,705,148       $ 1,783,776     $ 2,125,474  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

74    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Changes in Net Assets  (continued)

 

    BlackRock MuniHoldings Quality
Fund, Inc. (MUS)
   

 

    BlackRock Muni Intermediate
Duration Fund, Inc. (MUI)
 
     Six Months Ended
10/31/17
(Unaudited)
    Year Ended
04/30/17
           Six Months Ended
10/31/17
(Unaudited)
    Year Ended
04/30/17
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:

         

OPERATIONS

         

Net investment income

  $ 4,739,934     $ 9,805,483       $ 11,692,597     $ 24,790,887  

Net realized gain (loss)

    (97,228     544,766         (47,238     1,224,930  

Net change in unrealized appreciation (depreciation)

    386,820       (11,494,637       12,940,068       (32,802,123
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

    5,029,526       (1,144,388       24,585,427       (6,786,306
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)

         

From net investment income

    (4,959,420     (10,437,391       (11,833,546     (25,757,762

From net realized gain

                        (5,481,919
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Decrease in net assets resulting from distributions to Common Shareholders

    (4,959,420     (10,437,391       (11,833,546     (31,239,681
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Reinvestment of common distributions

    40,885       85,253                
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

Total increase (decrease) in net assets applicable to Common Shareholders

    110,991       (11,496,526       12,751,881       (38,025,987

Beginning of period

    181,613,731       193,110,257         580,944,990       618,970,977  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period

  $ 181,724,722     $ 181,613,731       $ 593,696,871     $ 580,944,990  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Undistributed net investment income, end of period

  $ 1,717,163     $ 1,936,649       $ 2,387,800     $ 2,528,749  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      75  


Statements of Changes in Net Assets  (continued)

 

    BlackRockMuniVest Fund II, Inc.
(MVT)
 
     Six Months Ended
10//31/17
(Unaudited)
    Year Ended
04/30/17
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:

   

OPERATIONS

   

Net investment income

  $ 9,030,213     $ 19,206,316  

Net realized gain (loss)

    (316,090     820,955  

Net change in unrealized appreciation (depreciation)

    1,987,584       (20,760,264
 

 

 

   

 

 

 

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

    10,701,707       (732,993
 

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)

   

From net investment income

    (9,299,864     (19,904,361
 

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

   

Reinvestment of common distributions

    1,020,825       1,823,631  
 

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

   

Total increase (decrease) in net assets applicable to Common Shareholders

    2,422,668       (18,813,723

Beginning of period

    321,938,952       340,752,675  
 

 

 

   

 

 

 

End of period

  $ 324,361,620     $ 321,938,952  
 

 

 

   

 

 

 

Undistributed net investment income, end of period

  $ 1,789,641     $ 2,059,292  
 

 

 

   

 

 

 

 

(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

76    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Cash Flows

Six Months Ended October 31, 2017 (Unaudited)

 

     BlackRock
MuniAssets
Fund, Inc.
(MUA)
    BlackRock
MuniEnhanced
Fund, Inc.
(MEN)
    BlackRock
MuniHoldings
Fund, Inc.
(MHD)
    BlackRock
MuniHoldings
Fund II, Inc.
(MUH)
 

CASH PROVIDED BY OPERATING ACTIVITIES

       

Net increase in net assets resulting from operations

  $ 15,315,826     $ 14,561,861     $ 9,332,028     $ 6,460,678  

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

       

Proceeds from sales of long-term investments

    41,288,784       67,345,877       16,258,327       12,047,729  

Purchases of long-term investments

    (39,323,921     (64,411,882     (12,285,781     (9,169,435

Net proceeds from sales (purchases) of short-term securities

    (2,818,872     (3,414,043     (5,278,346     (3,552,658

Amortization of premium and accretion of discount on investments and other fees

    82,118       (275,253     141,934       9,501  

Net realized gain on investments

    (1,767,916     (204,208     (48,250     (49,415

Net unrealized gain on investments

    (1,123,543     (5,109,052     (2,806,357     (1,730,677
(Increase) Decrease in Assets:                        

Cash pledged for futures contracts

    181,000       559,000       276,000       116,000  

Receivables:

       

Interest — unaffiliated

    (148,542     208,263       62,298       42,518  

Dividends — affiliated

    (2,389     (3,203     (2,466     (1,369

Variation margin on futures contracts

    (7,648     (6,500     (5,367     (3,625

Prepaid expenses

    13,002       49,225       (1,227     (2,430
Increase (Decrease) in Liabilities:                        

Payables:

       

Investment advisory fees

    10,507       9,991       7,043       4,994  

Interest expense and fees

    30,756       23,954       22,846       17,485  

Officer’s and Directors’ fees

    626       1,052       413       310  

Variation margin on futures contracts

    (17,250     (39,108     (21,297     (10,453

Other accrued expenses

    (72,935     (76,791     (62,878     (53,310
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    11,639,603       9,219,183       5,588,920       4,125,843  
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH USED FOR FINANCING ACTIVITIES

       

Proceeds from TOB Trust Certificates

    647,995       6,991,840       1,692,477       1,228,170  

Repayments of TOB Trust Certificates

    (398,849     (3,489,131     (810,000     (585,000

Proceeds from Loan for TOB Trust Certificates

    398,849       450,309              

Repayments of Loan for TOB Trust Certificates

    (647,995     (450,309            

Cash dividends paid to Common Shareholders

    (11,639,603     (9,715,849     (6,477,084     (4,772,750

Increase (decrease) in bank overdraft

          (196,611     5,687       3,737  

Amortization of deferred offering costs

          (42,531            
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

    (11,639,603     (6,452,282     (5,588,920     (4,125,843
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH

       

Net increase in cash

          2,766,901              

Cash at beginning of period

                       
 

 

 

   

 

 

   

 

 

   

 

 

 

Cash at end of period

  $     $ 2,766,901     $     $  
 

 

 

   

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

       

Cash paid during the period for interest expense

  $ 498,225     $ 1,791,540     $ 1,220,293     $ 848,741  
 

 

 

   

 

 

   

 

 

   

 

 

 

NON-CASH FINANCING ACTIVITIES

       

Capital shares issued in reinvestment of distributions paid to Common Shareholders

    760,953       336,699       411,605       290,507  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      77  


Statements of Cash Flows  (continued)

Six Months Ended October 31, 2017 (Unaudited)

 

    

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

  $ 5,029,526     $ 24,585,427     $ 10,701,707  

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

     

Proceeds from sales of long-term investments

    17,572,610       112,846,398       25,130,362  

Purchases of long-term investments

    (23,008,948     (121,893,831     (17,951,057

Net proceeds from sales (purchases) of short-term securities

    5,056,272       (6,506,936     (8,207,861

Amortization of premium and accretion of discount on investments and other fees

    562,021       3,319,476       447,368  

Net realized gain on investments

    (199,447     (812,868     (172,387

Net unrealized gain on investments

    (77,073     (11,482,904     (1,421,839
(Increase) Decrease in Assets:                  

Cash pledged for futures contracts

    141,000       626,000       202,000  

Receivables:

     

Interest — unaffiliated

    (76,246     55,908       123,502  

Dividends — affiliated

    474       (2,947     (3,301

Variation margin on futures contracts

    (5,687     (25,439     (6,992

Prepaid expenses

    (2,374     7,204       434  
Increase (Decrease) in Liabilities:                  

Payables:

     

Investment advisory fees

    4,718       25,911       4,714  

Interest expense and fees

    9,290       36,953       18,014  

Officer’s and Directors’ fees

    375       27,139       584  

Variation margin on futures contracts

    (10,343     (53,622     (18,187

Other accrued expenses

    (57,463     (98,052     (73,409
 

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    4,938,705       653,817       8,773,652  
 

 

 

   

 

 

   

 

 

 

CASH USED FOR FINANCING ACTIVITIES

     

Proceeds from TOB Trust Certificates

          11,390,000       2,291,585  

Repayments of TOB Trust Certificates

    (26,267           (2,800,591

Proceeds from Loan for TOB Trust Certificates

                 

Repayments of Loan for TOB Trust Certificates

                 

Cash dividends paid to Common Shareholders

    (4,918,350     (12,063,324     (8,274,159

Increase in bank overdraft

    5,912       19,507       9,513  

Amortization of deferred offering costs

                 
 

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

    (4,938,705     (653,817     (8,773,652
 

 

 

   

 

 

   

 

 

 

CASH

     

Net increase in cash

                 

Cash at beginning of period

                 
 

 

 

   

 

 

   

 

 

 

Cash at end of period

  $     $     $  
 

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

     

Cash paid during the period for interest expense

  $ 1,018,263     $ 3,093,406     $ 1,730,588  
 

 

 

   

 

 

   

 

 

 

NON-CASH FINANCING ACTIVITIES

     

Capital shares issued in reinvestment of distributions paid to Common Shareholders

    40,885             1,020,825  
 

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

78    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock MuniAssets Fund, Inc. (MUA)  
    Six Months Ended
10/31/17
(Unaudited)
          Year Ended April 30,  
        2017      2016      2015      2014      2013  

Net asset value, beginning of period

  $ 14.07             $ 14.45      $ 14.12      $ 13.56      $ 14.36      $ 13.47  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.34         0.70        0.72        0.73        0.77        0.77  

Net realized and unrealized gain (loss)

    0.09         (0.38      0.35        0.59        (0.82      0.90  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.43         0.32        1.07        1.32        (0.05      1.67  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.35       (0.70      (0.74      (0.76      (0.75      (0.78
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 14.15       $ 14.07      $ 14.45      $ 14.12      $ 13.56      $ 14.36  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 14.94       $ 14.82      $ 14.74      $ 14.22      $ 12.85      $ 13.96  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    3.01 %(d)        2.23      7.90      10.11      0.47      12.70
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    3.26 %(d)        5.56      9.30      17.02      (2.06 )%       12.22
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    0.90 %(e)        0.87      0.81      0.82      0.82      0.83
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    0.90 %(e)        0.87      0.81      0.82      0.82      0.83
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense and fees(f)

    0.70 %(e)        0.69      0.70      0.71      0.70      0.71
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    4.79 %(e)        4.93      5.09      5.24      5.84      5.52
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets, end of period (000)

  $ 508,979       $ 505,306      $ 517,697      $ 505,341      $ 485,319      $ 513,923  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 67,757       $ 67,507      $ 66,087      $ 61,066      $ 71,145      $ 76,451  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    7       11      18      22      19      19
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)  Based on average Common Shares outstanding.
(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)  Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.
(d)  Aggregate total return.
(e)  Annualized.
(f)  Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      79  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BlackRock MuniEnhanced Fund, Inc. (MEN)  
    Six Months Ended
10/31/17
(Unaudited)
          Year Ended April 30,  
      2017      2016      2015      2014      2013  

Net asset value, beginning of period

  $ 11.77             $ 12.52      $ 12.27      $ 11.94      $ 12.63      $ 12.12  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.31         0.65        0.70        0.71        0.73        0.71  

Net realized and unrealized gain (loss)

    0.19         (0.72      0.28        0.35        (0.70      0.50  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.50         (0.07      0.98        1.06        0.03        1.21  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.34       (0.68      (0.73      (0.73      (0.72      (0.70
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 11.93       $ 11.77      $ 12.52      $ 12.27      $ 11.94      $ 12.63  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 11.75       $ 11.69      $ 12.55      $ 11.67      $ 11.27      $ 12.65  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    4.27 %(d)        (0.51 )%       8.50      9.49      1.06      10.16
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    3.40 %(d)        (1.42 )%       14.35      10.33      (4.76 )%       14.69
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    1.90 %(e)        1.73      1.44      1.44      1.50      1.49 %(f) 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    1.90 %(e)        1.73      1.44      1.43      1.50      1.49 %(f) 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs(g)

    0.91 %(e)        0.89      0.90      0.91      0.92      0.96 %(f),(h) 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    5.08 %(e)        5.29      5.71      5.76      6.37      5.65 %(f) 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 353,882       $ 349,037      $ 370,342      $ 362,703      $ 352,878      $ 373,259  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 142,500       $ 142,500      $ 142,500      $ 142,500      $ 142,500      $ 142,500  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $ 348,338       $ 344,938      $ 359,889      $ 354,528      $ 347,633      $ 361,936  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 74,326       $ 70,823      $ 67,160      $ 76,094      $ 73,379      $ 81,244  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    12       12      10      12      16      12
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)  Based on average Common Shares outstanding.
(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)  Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.
(d)  Aggregate total return.
(e)  Annualized.
(f)  Does not reflect the effect of dividends to AMPS Shareholders.
(g)  Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.
(h)  For the year ended April 30, 2013, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.91%.

See notes to financial statements.

 

 

80    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BlackRock MuniHoldings Fund, Inc. (MHD)  
    Six Months Ended
10/31/17
(Unaudited)
          Year Ended April 30,  
            2017      2016      2015      2014      2013  

Net asset value, beginning of period

  $ 16.85             $ 17.95      $ 17.59      $ 16.85      $ 18.12      $ 17.36  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.45         0.95        1.00        1.03        1.04        1.07  

Net realized and unrealized gain (loss)

    0.21         (1.07      0.42        0.77        (1.22      1.01  

Distributions to VMTP Shareholders from net realized gain

                                        (0.01
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.66         (0.12      1.42        1.80        (0.18      2.07  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Distributions to Common Shareholders:(b)                                              

From net investment income

    (0.48       (0.98      (1.06      (1.06      (1.08      (1.12

From net realized gain

                                 (0.01      (0.19
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.48       (0.98      (1.06      (1.06      (1.09      (1.31
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 17.03       $ 16.85      $ 17.95      $ 17.59      $ 16.85      $ 18.12  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 16.59       $ 16.65      $ 18.14      $ 17.25      $ 16.01      $ 18.20  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    3.95 %(d)        (0.67 )%       8.65      11.22      (0.15 )%       12.20
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    2.48 %(d)        (2.87 )%       11.91      14.80      (5.55 )%       8.21
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.03 %(e)        1.87      1.53      1.50      1.64      1.60
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    2.03 %(e)        1.87      1.53      1.50      1.64      1.60
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    1.01 %(e)        0.99      0.99      0.99      1.04      1.02
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    5.23 %(e)        5.42      5.75      5.86      6.48      5.92
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 241,629       $ 238,684      $ 253,864      $ 248,646      $ 238,113      $ 255,911  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 83,700       $ 83,700      $ 83,700      $ 83,700      $ 83,700      $ 83,700  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 388,684       $ 385,166      $ 403,302      $ 397,068      $ 384,484      $ 405,748  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 63,116       $ 62,233      $ 60,289      $ 56,784      $ 60,238      $ 69,753  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    3       9      7      11      20      16
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)  Based on average Common Shares outstanding.
(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)  Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.
(d)  Aggregate total return.
(e)  Annualized.
(f)  Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

 

FINANCIAL HIGHLIGHTS      81  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BlackRock MuniHoldings Fund II, Inc. (MUH)  
    Six Months Ended
10/31/17
(Unaudited)
          Year Ended April 30,  
        2017      2016      2015      2014      2013  

Net asset value, beginning of period

  $ 15.52             $ 16.51      $ 16.21      $ 15.61      $ 16.93      $ 16.23  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.41         0.86        0.91        0.93        0.95        0.98  

Net realized and unrealized gain (loss)

    0.16         (0.95      0.33        0.64        (1.17      0.93  

Distributions to VMTP Shareholders from net realized gain

                                        (0.01
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.57         (0.09      1.24        1.57        (0.22      1.90  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Distributions to Common Shareholders:(b)                                              

From net investment income

    (0.44       (0.90      (0.94      (0.97      (1.00      (1.04

From net realized gain

                                 (0.10      (0.16
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.44       (0.90      (0.94      (0.97      (1.10      (1.20
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 15.65       $ 15.52      $ 16.51      $ 16.21      $ 15.61      $ 16.93  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 14.93       $ 15.59      $ 16.23      $ 15.28      $ 14.84      $ 16.75  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    3.72 %(d)        (0.52 )%       8.25      10.64      (0.40 )%       11.99
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    (1.50 )%(d)        1.65      12.90      9.71      (4.30 )%       9.25
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    1.98 %(e)        1.83      1.50      1.48      1.61      1.59
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    1.98 %(e)        1.83      1.50      1.48      1.61      1.59
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    1.01 %(e)        1.00      1.00      1.00      1.04      1.03
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    5.18 %(e)        5.37      5.66      5.76      6.36      5.81
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 177,403       $ 175,637      $ 186,553      $ 183,214      $ 176,395      $ 191,366  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 55,000       $ 55,000      $ 55,000      $ 55,000      $ 55,000      $ 55,000  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 422,551       $ 419,340      $ 439,188      $ 433,117      $ 420,718      $ 447,938  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 48,150       $ 47,507      $ 46,103      $ 43,568      $ 48,497      $ 56,354  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    3       10      7      11      18      16
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)  Based on average Common Shares outstanding.
(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)  Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.
(d)  Aggregate total return.
(e)  Annualized.
(f)  Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

 

82    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BlackRock MuniHoldings Quality Fund, Inc. (MUS)  
    Six Months Ended
10/31/17
(Unaudited)
          Year Ended April 30,  
            2017      2016      2015      2014      2013  

Net asset value, beginning of period

  $ 13.95             $ 14.84      $ 14.57      $ 14.18      $ 15.31      $ 14.61  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.36         0.75        0.80        0.80        0.82        0.83  

Net realized and unrealized gain (loss)

    0.03         (0.84      0.28        0.40        (1.13      0.76  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.39         (0.09      1.08        1.20        (0.31      1.59  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.38       (0.80      (0.81      (0.81      (0.82      (0.89
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 13.96       $ 13.95      $ 14.84      $ 14.57      $ 14.18      $ 15.31  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 13.34       $ 13.38      $ 14.31      $ 13.32      $ 12.88      $ 14.92  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    2.88 %(d)        (0.47 )%       8.24      9.20      (1.07 )%       11.06
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    2.50 %(d)        (1.00 )%       14.09      9.91      (7.78 )%       8.90
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.16 %(e)        1.95      1.60      1.59      1.75      1.80
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    2.10 %(e)        1.91      1.58      1.57      1.67      1.72
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    0.99 %(e)        0.98      0.99      0.99      0.99      1.00
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    5.14 %(e)        5.22      5.49      5.49      6.00      5.48
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 181,725       $ 181,614      $ 193,110      $ 189,594      $ 184,479      $ 199,236  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 87,000       $ 87,000      $ 87,000      $ 87,000      $ 87,000      $ 87,000  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 308,879       $ 308,751      $ 321,966      $ 317,924      $ 312,045      $ 329,007  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 29,123       $ 29,150      $ 24,429      $ 21,937      $ 25,187      $ 48,934  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    6       18      25      11      46      34
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)  Based on average Common Shares outstanding.
(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)  Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.
(d)  Aggregate total return.
(e)  Annualized.
(f)  Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      83  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BlackRock Muni Intermediate Duration Fund, Inc. (MUI)  
    Six Months Ended
10/31/17
(Unaudited)
          Year Ended April 30,  
        2017      2016      2015      2014      2013  

Net asset value, beginning of period

  $ 15.17             $ 16.16      $ 15.86      $ 15.64      $ 16.60      $ 16.21  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.31         0.65        0.73        0.77        0.80        0.82  

Net realized and unrealized gain (loss)

    0.33         (0.83      0.53        0.27        (0.85      0.58  

Distributions to VMTP Shareholders from net realized gain

                                        (0.01
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.64         (0.18      1.26        1.04        (0.05      1.39  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Distributions to Common Shareholders:(b)                                              

From net investment income

    (0.31       (0.67      (0.78      (0.82      (0.86      (0.87

From net realized gain

            (0.14      (0.18             (0.05      (0.13
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.31       (0.81      (0.96      (0.82      (0.91      (1.00
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 15.50       $ 15.17      $ 16.16      $ 15.86      $ 15.64      $ 16.60  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 14.02       $ 13.96      $ 15.19      $ 14.47      $ 14.55      $ 16.12  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    4.43 %(d)        (0.69 )%       9.04      7.27      0.50      8.78
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    2.64 %(d)        (2.77 )%       12.27      5.20      (3.73 )%       4.09
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.02 %(e)        1.90      1.57      1.52      1.65      1.91
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    2.02 %(e)        1.89      1.57      1.52      1.65      1.91
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    0.97 %(e)        0.96      0.94      0.96      1.00      1.35 %(g) 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.92 %(e)        4.12      4.61      4.82      5.28      4.93
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 593,697       $ 580,945      $ 618,971      $ 607,440      $ 599,066      $ 635,652  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 287,100       $ 287,100      $ 287,100      $ 287,100      $ 287,100      $ 287,100  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 306,791       $ 302,349      $ 315,594      $ 311,578      $ 308,661      $ 321,405  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 69,727       $ 58,337      $ 63,102      $ 52,932      $ 69,070      $ 105,939  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    13       12      20      18      22      16
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)  Based on average Common Shares outstanding.
(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)  Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.
(d)  Aggregate total return.
(e)  Annualized.
(f)  Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.
(g)  For the year ended April 30, 2013, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.98%.

See notes to financial statements.

 

 

84    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BlackRock MuniVest Fund II, Inc. (MVT)  
    Six Months Ended
10/31/17
(Unaudited)
          Year Ended April 30,  
        2017      2016      2015      2014      2013  

Net asset value, beginning of period

  $ 15.19             $ 16.17      $ 16.01      $ 15.45      $ 16.69      $ 15.91  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.43         0.91        0.98        0.99        1.03        1.06  

Net realized and unrealized gain (loss)

    0.08         (0.95      0.18        0.61        (1.19      0.82  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.51         (0.04      1.16        1.60        (0.16      1.88  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Distributions to Common Shareholders from net investment income(b)   (0.44)           (0.94)      (1.00)      (1.04)      (1.08)      (1.10)  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 15.26       $ 15.19      $ 16.17      $ 16.01      $ 15.45      $ 16.69  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 15.21       $ 15.45      $ 17.38      $ 16.26      $ 15.16      $ 17.31  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    3.36 %(d)        (0.34 )%       7.61      10.65      (0.37 )%       11.95
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    1.29 %(d)        (5.68 )%       13.88      14.52      (5.74 )%       10.28
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    1.98 %(e)        1.88      1.52      1.50      1.63      1.66
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    1.98 %(e)        1.87      1.52      1.50      1.63      1.66
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    0.92 %(e)        0.92      0.92      0.92      0.96      0.96
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    5.51 %(e)        5.78      6.15      6.17      6.93      6.43
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 324,362       $ 321,939      $ 340,753      $ 336,320      $ 324,146      $ 348,998  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 140,000       $ 140,000      $ 140,000      $ 140,000      $ 140,000      $ 140,000  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 331,687       $ 329,956      $ 343,395      $ 340,229      $ 331,533      $ 349,284  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 60,066       $ 60,575      $ 69,195      $ 66,439      $ 66,715      $ 99,386  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    3       9      6      10      17      15
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)  Based on average Common Shares outstanding.
(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)  Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.
(d)  Aggregate total return.
(e)  Annualized.
(f)  Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      85  


Notes to Financial Statements  (Unaudited)

 

1. Organization:

The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to herein collectively as the “Funds”, or individually as a “Fund”:

 

Fund Name   Herein Referred To As    Organized    Diversification
Classification

BlackRock MuniAssets Fund, Inc.

  MUA    Maryland    Diversified

BlackRock MuniEnhanced Fund, Inc.

  MEN    Maryland    Diversified

BlackRock MuniHoldings Fund, Inc.

  MHD    Maryland    Diversified

BlackRock MuniHoldings Fund II, Inc.

  MUH    Maryland    Diversified

BlackRock MuniHoldings Quality Fund, Inc.

  MUS    Maryland    Diversified

BlackRock Muni Intermediate Duration Fund, Inc.

  MUI    Maryland    Diversified

BlackRock MuniVest Fund II, Inc.

  MVT    Maryland    Diversified

The Board of Directors of the Funds are collectively referred to throughout this report as the “Board of Directors” or the “Board,” and the directors thereof are collectively referred to throughout this report as “Directors”. The Funds determine and make available for publication the net asset values (“NAVs”) of their Common Shares on a daily basis.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of closed-end funds referred to as the Closed-End Complex.

 

2. Significant Accounting Policies:

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: 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 are recorded on the ex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) or certain borrowings (e.g., TOB Trust transactions) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowing to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Distributions to Preferred Shareholders are accrued and determined as described in Note 10.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Fund’s Board, the 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 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 Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund, if applicable. Deferred compensation liabilities are included in the officer’s and directors’ fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan.

Recent Accounting Standards: In November 2016, the Financial Accounting Standards Board issued Accounting Standards Update “Restricted Cash” which will require entities to include the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the beginning and ending cash balances in the Statements of Cash Flows. The guidance will be applied retrospectively and is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Management is evaluating the impact, if any, of this guidance on the Funds’ presentation in the Statements of Cash Flows.

In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently evaluating the impact of this guidance to the Funds.

 

 

86    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (continued)

 

Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

Through May 31, 2016, the Funds had an arrangement with their custodian whereby credits were earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges. Credits previously earned have been utilized until December 31, 2016. Under current arrangements effective June 1, 2016, the Funds no longer earn credits on uninvested cash, and may incur charges on uninvested cash balances and overdrafts, subject to certain conditions.

 

3. Investment Valuation and Fair Value Measurements:

Investment Valuation Policies: The Funds’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. 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 determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of each Fund (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

    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.

 

    Investments in open-end U.S. mutual funds are valued at NAV each business day.

 

    Futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include Market approach, Income approach and Cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

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

 

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

 

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

 

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

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

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

 

 

NOTES TO FINANCIAL STATEMENTS      87  


Notes to Financial Statements  (continued)

 

 

4. Securities and Other Investments:

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Forward Commitments and When-Issued Delayed Delivery Securities: Certain 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. A Fund 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, a Fund may be required to pay more at settlement than the security is worth. In addition, a Fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a Fund assumes 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, a Fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

Municipal Bonds Transferred to TOB Trusts: The Funds leverage their assets through the use of “TOB Trust” transactions. The Funds transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a Fund provide the Fund with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The Funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a Fund has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds ratably in proportion to their participation in the TOB Trust.

TOB Trusts are supported by a liquidity facility provided by a third party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

The TOB Trust may be collapsed without the consent of a Fund, upon the occurrence of a termination event as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Funds) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.

While a Fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a Fund to borrow money for purposes of making investments. MUA, MEN and MVT’s management believes that a Fund’s restrictions on borrowings do not apply to the Funds’ TOB Trust transactions. Each Fund’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a Fund. A Fund typically invests the cash received in additional municipal bonds.

Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a Fund’s Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a Fund’s payable to the holder of the TOB Trust Certificates or the Liquidity Provider, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a Fund incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of deferred offering costs in the Statements of Operations.

For the six months ended October 31, 2017, the following table is a summary of each Fund’s TOB Trusts:

 

     Underlying
Municipal Bonds
Transferred to
TOB Trusts
 (a)
     Liability for
TOB Trust
Certificates
 (b)
    

Range of

Interest Rates
on TOB Trust
Certificates at
Period End

     Average
TOB Trust
Certificates
Outstanding
     Daily Weighted
Average Rate
of Interest and
Other Expenses
on TOB Trusts
 

MUA

  $ 121,504,110      $ 67,756,523        0.94% - 1.15%      $ 67,693,423        1.55

MEN

    130,399,778        74,326,061        0.93% - 1.58%        71,070,569        1.49  

MHD

    109,674,277        63,115,775        0.93% - 1.58%        62,600,951        1.49  

MUH

    82,873,200        48,150,135        0.93% - 1.58%        47,775,151        1.49  

MUS

    55,623,341        29,123,326        0.93% - 1.10%        29,143,703        1.52  

MUI

    123,058,548        69,726,850        0.94% - 1.00%        65,564,350        1.45  

MVT

    106,662,036        60,065,874        0.93% - 1.58%        59,869,830        1.51  

 

 

88    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (continued)

 

 

  (a)  The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the Funds, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the Funds, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts.  
  (b)  TOB Trusts may be structured on a non-recourse or recourse basis. When a Fund invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a Fund invests in a TOB Trust on a recourse basis, a Fund enters into a reimbursement agreement with the Liquidity Provider where a Fund is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a Fund invests in a recourse TOB Trust, a Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a Fund at October 31, 2017, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a Fund at October 31, 2017.  

For the six months ended October 31, 2017, the following table is a summary of each Fund’s Loan for TOB Trust Certificates:

 

     Loans
Outstanding
at Period End
    

Range of

Interest Rates
on Loans at

Period End

     Average
Loans
Outstanding
     Daily Weighted
Average Rate
of Interest and
Other Expenses
on Loans
 

MUA

  $           $ 63,100        0.80

MEN

                  14,684        0.78  

 

5. Derivative Financial Instruments:

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk), changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract.

Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. 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 market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations 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 futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

 

6. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock, Inc. (“BlackRock”) for 1940 Act purposes.

Investment Advisory: Each Fund entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser, 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 personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund, except for MUI, pays the Manager a monthly fee, at an annual rate equal to following percentages of the average daily value of each Fund’s net assets:

 

     MUA      MEN      MHD      MUH      MUS      MVT  

Investment advisory fees

    0.55      0.50      0.55      0.55      0.55      0.50

For such services, MUI pays the Manager a monthly fee of 0.55% of (i) the average daily value of MUI’s net assets and (ii) the proceeds of any outstanding debt securities and borrowings used for leverage.

For purposes of calculating these fees, “net assets” mean the total assets of a Fund minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is understood that the liquidation preference of any outstanding preferred stock (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Fund’s NAV.

 

 

NOTES TO FINANCIAL STATEMENTS      89  


Notes to Financial Statements  (continued)

 

Waivers: The Manager, for MUS, voluntarily agreed to waive its investment advisory fee on the proceeds of the Preferred Shares and TOB Trusts that exceed 35% of total assets minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). This amounts is included in fees waived by the Manager in the Statements of Operations. For the six months ended October 31, 2017, the waiver was $48,952.

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 (the “affiliated money market fund waiver”). These amounts are included in fees waived by the Manager in the Statements of Operations. For the six months ended October 31, 2017, the amounts waived were as follows:

 

     MUA      MEN      MHD      MUH      MUS      MUI      MVT  

Amounts waived

  $ 2,172      $ 1,630      $ 2,111      $ 1,475      $ 1,536      $ 3,941      $ 2,796  

The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2018. The agreement can be renewed for annual periods thereafter, and may be terminated on 90 days’ notice, each subject to approval by a majority of the Funds’ Independent Directors. For the six months ended October 31, 2017, there were no fees waived by the Manager.

Officers and Directors: Certain officers and/or Directors of the Funds are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Officer and Directors in the Statements of Operations.

 

7. Purchases and Sales:

For the six months ended October 31, 2017, purchases and sales of investments, excluding short-term securities, were as follows:

 

     MUA      MEN      MHD      MUH      MUS      MUI      MVT  

Purchases

  $ 40,496,003      $ 71,662,922      $ 12,284,833      $ 9,168,584      $ 24,060,498      $ 148,406,172      $ 17,949,385  

Sales

    41,117,484        68,546,251        16,277,387        12,062,287        17,756,997        118,798,062        25,605,362  

 

8. Income Tax Information:

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 U.S. federal income tax provision is required.

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for each of the four years ended April 30, 2017. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2017, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of October 31, 2017, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

Expires April 30,   MUA      MEN      MUS      MVT  

No expiration date(a)

  $ 6,490,824      $      $ 7,432,440      $ 1,124,434  

2018

    396,366        1,225,298        6,614,798         

2019

    2,194,154        732,655                
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 9,081,344      $ 1,957,953      $ 14,047,238      $ 1,124,434  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Must be utilized prior to losses subject to expiration.  

As of October 31, 2017, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

 

      MUA     MEN     MHD     MUH     MUS      MUI      MVT  

Tax cost

   $ 466,439,266     $ 453,294,750     $ 291,873,807     $ 208,564,879     $ 246,996,497      $ 840,486,589      $ 421,310,474  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Gross unrealized appreciation

   $ 44,697,763     $ 43,194,719     $ 30,845,661     $ 21,646,112     $ 19,764,014      $ 51,648,255      $ 36,934,860  

Gross unrealized depreciation

     (8,051,547     (964,498     (1,307,728     (593,544     (232,155      (1,208,098      (630,552
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

Net unrealized appreciation (depreciation)

   $ 36,646,216     $ 42,230,221     $ 29,537,933     $ 21,052,568     $ 19,531,859      $ 50,440,157      $ 36,304,308  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

9. Principal Risks:

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.

 

 

90    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (continued)

 

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Fund’s ability to buy or sell bonds. As a result, a Fund may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Fund needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) general economy; (ii) overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolio’s current earnings rate.

The Funds may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Funds reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a fund.

A Fund structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

Should short-term interest rates rise, the Funds’ investments in TOB Trusts may adversely affect the Funds’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds’ NAVs per share.

The SEC and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Funds’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Funds, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.

Counterparty Credit Risk: Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes 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 approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: As of period end, MEN, MUS, MUI and MVT invested a significant portion of their assets in securities in the transportation sector. Changes in economic conditions affecting such sector would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

The Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

 

10. Capital Share Transactions:

Each Fund is authorized to issue 200 million shares, all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10. The par value for each Fund’s Preferred Shares outstanding is $0.10. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders.

 

 

NOTES TO FINANCIAL STATEMENTS      91  


Notes to Financial Statements  (continued)

 

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

     MUA      MEN      MHD      MUH      MUS      MVT  

Six Months Ended October 31, 2017

    53,114        28,129        24,051        18,533        2,901        66,648  

Year Ended April 30, 2017

    83,132        52,845        25,957        17,531        5,658        114,327  

For the six months ended October 31, 2017 and the year ended April 30, 2017, shares issued and outstanding remained constant for MUI.

Preferred Shares

Each Fund’s Preferred Shares rank prior to the Fund’s Common Shares as to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of a Fund. The 1940 Act prohibits the declaration of any dividend on a Fund’s Common Shares or the repurchase of a Fund’s Common Shares if a Fund fails to maintain asset coverage of at least 200% of the liquidation preference of the Fund’s outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, a Fund is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with the Fund’s Preferred Shares or repurchasing such shares if a Fund fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares’ governing instruments or comply with the basic maintenance amount requirement of the ratings agencies rating the Preferred Shares.

The holders of Preferred Shares have voting rights equal to the voting rights of the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class on certain matters. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors to the Board of each Fund. The holders of Preferred Shares are also entitled to elect the full Board of Directors if dividends on the Preferred Shares are not paid for a period of two years. The holders of Preferred Shares are also generally entitled to a separate class vote to amend the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred Shares, voting as a separate class, 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.

VRDP Shares

MEN has issued Series W-7 VRDP Shares, $100,000 liquidation preference per share, in a privately negotiated offering. The VRDP Shares were offered to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The VRDP Shares include a liquidity feature and are currently in a special rate period, as described below.

As of period end, the VRDP Shares outstanding of MEN were as follows:

 

     Issue
Date
     Shares
Issued
     Aggregate
Principal
     Maturity
Date
 

MEN

    5/19/11        1,425      $ 142,500,000        6/01/41  

Redemption Terms: MEN is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, MEN is required to begin to segregate liquid assets with the Fund’s custodian to fund the redemption. In addition, MEN is required to redeem certain of its outstanding VRDP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the VRDP Shares may also be redeemed, in whole or in part, at any time at the option of MEN. The redemption price per VRDP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends.

Liquidity Feature: MEN entered into a fee agreement with the liquidity provider that requires an initial commitment to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations.

The fee agreement between MEN and the liquidity provider is for a 364 day term and was scheduled to expire on July 6, 2017. MEN renewed the fee agreement for an additional 364 day term which is scheduled to expire on July 5, 2018 unless renewed or terminated in advance.

In the event the fee agreement is not renewed or is terminated in advance, and MEN does not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. In the event of such mandatory purchase, MEN is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, MEN is required to begin to segregate liquid assets with its custodian to fund the redemption. There is no assurance MEN will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Remarketing: MEN may incur remarketing fees of 0.10% on the aggregate principal amount of all the Fund’s VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. During any special rate period (as described below), MEN may incur no remarketing fees.

Dividends: Dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed. At the date of issuance, the VRDP Shares were assigned long-term ratings of Aaa from Moody’s and AAA from Fitch. Subsequent to the

 

 

92    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (continued)

 

issuance of the VRDP Shares, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of period end, the VRDP Shares were assigned a long-term rating of Aa1 from Moody’s under its new ratings methodology. The VRDP Shares continue to be assigned a long-term rating of AAA from Fitch.

For the six months ended October 31, 2017, the annualized dividend rate for MEN’s VRDP Shares was 1.72%.

Special Rate Period: On June 20, 2012, MEN commenced an approximate three-year term ending June 24, 2015 (the “special rate period”) with respect to its VRDP Shares, during which the VRDP Shares will not be subject to any remarketing and the dividend rate will be based on a predetermined methodology. The implementation of the special rate period resulted in a mandatory tender of the VRDP Shares prior to the commencement of the special rate period. The mandatory tender event was not the result of a failed remarketing. The short-term ratings on the VRDP Shares for MEN was withdrawn by Moody’s, Fitch and/or S&P at the commencement of the special rate period. The special rate period has been subsequently extended and is currently set to expire on June 20, 2018. Prior to June 20, 2018, the holder of the VRDP Shares and MEN may mutually agree to extend the special rate period. If the special rate period is not extended, the VRDP Shares will revert to remarketable securities upon the termination of the special rate period and will be remarketed and available for purchase by qualified institutional investors.

During the special rate period, the liquidity and fee agreements remain in effect and the VRDP Shares remain subject to mandatory redemption by MEN on the maturity date. The VRDP Shares will not be remarketed or subject to optional or mandatory tender events during the special rate period. During the special rate period, MEN is required to comply with the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares as is required when the VRDP Shares are not in a special rate period. MEN will not pay any fees to the liquidity provider and remarketing agent during the special rate period. MEN will also pay dividends monthly based on the sum of Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index rate and a percentage per annum based on the long-term ratings assigned to the VRDP Shares.

If MEN redeems the VRDP Shares prior to the end of the special rate period and the VRDP Shares have long-term ratings above A1/A+ and its equivalent by all ratings agencies then rating the VRDP Shares, then such redemption may be subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.

For the six months ended October 31, 2017, VRDP Shares issued and outstanding of MEN remained constant.

VMTP Shares

MHD, MUH, MUS, MUI and MVT (collectively, the “VMTP Funds”) have issued Series W-7 VMTP Shares, $100,000 liquidation preference per share, in privately negotiated offerings and sale of VMTP Shares exempt from registration under the Securities Act. The VMTP Shares are subject to certain restrictions on transfer, and VMTP Funds may also be required to register the VMTP Shares for sale under the Securities Act under certain circumstances. In addition, amendments to the VMTP governing documents generally require the consent of the holders of VMTP Shares.

On December 7, 2012, MUI issued Series W-7 VMTP Shares, $100,000 liquidation preference per share, in a private offering with a maturity date of January 4, 2016. The maturity date was subsequently extended to January 2, 2019. Total proceeds received of $287,100,000 were used to redeem all of MUI’s existing VRDP Shares on December 21, 2012. The fee agreement for MUI’s VRDP Shares was for a two year term and was scheduled to expire on December 28, 2012 and was terminated upon issuance of the VMTP Shares. Any liquidity fees incurred by MUI in connection with MUI’s VRDP Shares through the date of issuance of the VMTP Shares are shown as liquidity fees in the Statements of Operations.

As of period end, the VMTP Shares outstanding of each Fund were as follows:

 

     Issue
Date
     Shares
Issued
     Aggregate
Principal
     Term
Redemption
Date
 

MHD

    12/16/11        837      $ 83,700,000        01/02/19  

MUH

    12/16/11        550        55,000,000        01/02/19  

MUS

    12/16/11        870        87,000,000        01/02/19  

MUI

    12/07/12        2,871        287,100,000        01/02/19  

MVT

    12/16/11        1,400        140,000,000        01/02/19  

Redemption Terms: Each VMTP Fund is required to redeem its VMTP Shares on the term redemption date, unless earlier redeemed or repurchased or unless extended. In June 2015, the term redemption dates for MHD, MUH, MUS, MUI and MVT were extended until January 2, 2019. There is no assurance that the term of a Fund’s VMTP Shares will be extended further or that a Fund’s VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months prior to the term redemption date, each VMTP Fund is required to begin to segregate liquid assets with each Fund’s custodian to fund the redemption. In addition, each VMTP Fund is required to redeem certain of its outstanding VMTP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, a Fund’s VMTP Shares may be redeemed, in whole or in part, at any time at the option of the Fund. The redemption price per VMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends and applicable redemption premium. If a Fund redeems the VMTP Shares prior to the term redemption date and the VMTP Shares have long-term ratings above A1/A+ or its equivalent by the ratings agencies then rating the VMTP Shares, then such redemption may be subject to a prescribed redemption premium (up to 3% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining until the term redemption date, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.

 

 

NOTES TO FINANCIAL STATEMENTS      93  


Notes to Financial Statements  (continued)

 

Dividends: Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to SIFMA. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by the ratings agencies then rating the VMTP Shares. At the date of issuance, the VMTP Shares were assigned long-term ratings of Aaa from Moody’s and AAA from Fitch. Subsequent to the issuance of the VMTP Shares, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of period end, the VMTP Shares were assigned a long-term rating of Aa1 from Moody’s under its new rating methodology. The VMTP Shares continue to be assigned a long-term rating of AAA from Fitch. The dividend rate on the VMTP Shares is subject to a step-up spread if the Funds fail to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and complying with certain asset coverage and leverage requirements.

For the six months ended October 31, 2017, the average annualized dividend rate[s] for the VMTP Shares were as follows:

 

     MHD      MUH      MUS      MUI      MVT  

Rate

    1.84      1.84      1.84      1.84      1.84

For the six months ended October 31, 2017, VMTP Shares issued and outstanding of each Fund remained constant.

Offering Costs: The Funds incurred costs in connection with the issuance of VRDP and VMTP Shares, which were recorded as a direct deduction from the carrying value of the related debt liability and will be amortized over the life of the VRDP and VMTP Shares with the exception of upfront fees paid to the liquidity provider which were amortized over the life of the liquidity agreement. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

MUI’s offering costs that were recorded as a deferred charge and amortized over the 30-year life of MUI’s VRDP Shares were accelerated and charged to expense immediately upon redemption of MUI’s VRDP Shares. Costs incurred in connection with the issuance of MUI’s VMTP Shares were recorded as a deferred charge and will be amortized over the life of the VMTP Shares.

Financial Reporting: The VRDP and VMTP Shares are considered debt of the issuer; therefore, the liquidation preference, which approximates fair value of the VRDP and VMTP Shares, is recorded as a liability in the Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP and VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP and VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP and VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes.

 

11. 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:

 

     Common Dividend
Per Share
            Preferred Shares (c)  
     Paid (a)      Declared (b)             Shares      Series      Declared  

MUA

  $ 0.0575      $ 0.0545                      $  

MEN

    0.0565        0.0480          VRDP        W-7        211,993  

MHD

    0.0745        0.0745          VMTP        W-7        133,117  

MUH

    0.0675        0.0675          VMTP        W-7        87,473  

MUS

    0.0635        0.0635          VMTP        W-7        138,366  

MUI

    0.0495        0.0495          VMTP        W-7        456,607  

MVT

    0.0730        0.0730                VMTP        W-7        222,658  

 

  (a)  Net investment income dividend paid on December 1, 2017 to Common Shareholders of record on November 15, 2017.  
  (b)  Net investment income dividend declared on December 1, 2017, payable to Common Shareholders of record on December 12, 2017.  
  (c)  Dividends declared for period November 1, 2017 to November 30, 2017.  

 

     Common Distribution Per Share  
     Declared (a)      Declared (b)      Declared (c)  

MUA

  $ 0.003343                

MEN

    0.005133                

MHD

    0.001420        0.004439        0.008899  

MUH

    0.002020        0.003431        0.004877  

MUI

    0.001471               0.001553  

MVT

    0.002480                

 

  (a)  Net investment income special dividend declared amounts per share on December 1, 2017, payable to Common Shareholders of record on December 12, 2017.  
  (b)  Special short-term capital gain distribution declared amounts per share on December 1, 2017, payable to Common Shareholders of record on December 12, 2017.  
  (c)  Special long-term capital gain distribution declared amounts per share on December 1, 2017, payable to Common Shareholders of record on December 12, 2017.  

 

 

94    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Disclosure of Investment Advisory Agreements

 

The Board of Directors (each, a “Board,” collectively, the “Boards,” and the members of which are referred to as “Board Members”) of 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”) and BlackRock MuniVest Fund II, Inc. (“MVT,” and together with MUA, MEN, MHD, MUH, MUS and MUI, each, a “Fund,” and, collectively, the “Funds”) met in person on April 27, 2017 (the “April Meeting”) and June 7-8, 2017 (the “June Meeting”) to consider the approval of each Fund’s investment advisory agreement (each, an “Advisory Agreement,” and, collectively, the “Advisory Agreements”) with BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. The Manager is referred to herein as “BlackRock.” The Advisory Agreements are also referred to herein as the “Agreements.”

Activities and Composition of the Board

On the date of the June Meeting, the Board of each Fund consisted of eleven individuals, nine of whom were not “interested persons” of such Fund as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of the Funds and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chair of each Board is an Independent Board Member. Each Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee, and an Executive Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member).

The Agreements

Pursuant to the 1940 Act, each Board is required to consider the continuation of its Advisory Agreement on an annual basis. The Boards have four quarterly meetings per year, each extending over two days, a fifth one-day meeting to consider specific information surrounding the consideration of renewing the Agreements and additional in-person and telephonic meetings as needed. In connection with this year-long deliberative process, the Boards assessed, among other things, the nature, extent and quality of the services provided to the Funds by BlackRock, BlackRock’s personnel and affiliates, including, as applicable; investment management, administrative, and shareholder services; the oversight of fund service providers; marketing; risk oversight; compliance; and ability to meet applicable legal and regulatory requirements.

The Boards, acting directly and through their respective committees, consider at each of their meetings, and from time to time as appropriate, factors that are relevant to their annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Funds and their shareholders. BlackRock also furnished additional information to the Boards in response to specific questions from the Boards. This additional information is discussed further below in the section titled “Board Considerations in Approving the Agreements.” Among the matters the Boards considered were: (a) investment performance for one-year, three-year, five-year, ten-year, and/or since inception periods, as applicable, against peer funds, applicable benchmarks, and performance metrics, as applicable, as well as senior management’s and portfolio managers’ analysis of the reasons for any over-performance or underperformance relative to their peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, paid to BlackRock and its affiliates by the Funds for services; (c) Fund operating expenses and how BlackRock allocates expenses to the Funds; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Funds’ investment objective(s), policies and restrictions, and meeting regulatory requirements; (e) the Funds’ adherence to their compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Boards; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of the Funds’ valuation and liquidity procedures; (k) an analysis of management fees for products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Funds; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

The Board of each of MEN, MHD, MUH, MUS, MUI and MVT considered BlackRock’s efforts during the past several years with regard to the redemption of outstanding auction rate preferred securities (“AMPS”). As of the date of this report, each of MEN, MHD, MUH, MUS, MUI and MVT has redeemed all of its outstanding AMPS.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April Meeting, the Boards requested and received materials specifically relating to the Agreements. The Boards are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to better assist their deliberations. The materials provided in connection with the April Meeting included (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”) on Fund fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds as determined by Broadridge(a) and a customized peer group selected by BlackRock (“Customized Peer Group”); (b) information on the profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (c) a general analysis provided by BlackRock concerning investment management fees charged to other clients, such as institutional clients, sub-advised mutual funds, and open-end funds, under similar investment mandates, as applicable; (d) review of non-management fees; (e) the existence, impact and sharing of potential economies of scale; and (f) a summary of aggregate amounts paid by each Fund to BlackRock.

At the April Meeting, the Boards reviewed materials relating to their consideration of the Agreements. As a result of the discussions that occurred during the April Meeting, and as a culmination of the Boards’ year-long deliberative process, the Boards presented BlackRock with questions and requests for additional information. BlackRock

 

(a)  Funds are ranked by Broadridge in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable.

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENTS      95  


Disclosure of Investment Advisory Agreements  (continued)

 

responded to these requests with additional written information in advance of the June Meeting. Topics covered included:(a) fund repositionings and portfolio management changes, including additional information about the portfolio managers, research teams, organization and methods and historical track records of the teams, and the potential impact of such changes on fund performance and the costs of such changes; (b) scientific active equity management; (c) BlackRock’s option overwrite policy; (d) differences in services between closed-end funds and mutual funds; (d) market discount; and (e) adviser profitability.

At the June Meeting, each Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and its Fund for a one-year term ending June 30, 2018. In approving the continuation of the Agreements, the Boards considered: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Funds; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and its affiliates from their relationship with the Funds; (d) the Funds’ costs to investors compared to the costs of Expense Peers and performance compared to the relevant performance metrics as previously discussed; (e) the sharing of potential economies of scale; (f) fall-out benefits to BlackRock and its affiliates as a result of its relationship with the Funds; and (g) other factors deemed relevant by the Board Members.

The Boards also considered other matters they deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, services related to the valuation and pricing of Fund portfolio holdings, and advice from independent legal counsel with respect to the review process and materials submitted for the Boards’ review. The Boards noted the willingness of BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Boards, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of the Funds. Throughout the year, the Boards compared the Funds’ performance to the performance of a comparable group of closed-end funds, relevant benchmark, and performance metrics, as applicable. The Boards met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. Each Board also reviewed the materials provided by its Fund’s portfolio management team discussing the Fund’s performance and the Fund’s investment objective(s), strategies and outlook.

The Boards considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and the Funds’ portfolio management teams; BlackRock’s research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Boards engaged in a review of BlackRock’s compensation structure with respect to the Funds’ portfolio management teams and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Boards considered the quality of the administrative and other non-investment advisory services provided to the Funds. BlackRock and its affiliates provide the Funds with certain administrative, shareholder, and other services (in addition to any such services provided to the Funds by third parties) and officers and other personnel as are necessary for the operations of the Funds. In particular, BlackRock and its affiliates provide the Funds with administrative services including, among others: (i) preparing disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of the Fund; (iii) oversight of daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; (viii) furnishing analytical and other support to assist the Boards in their consideration of strategic issues such as the merger, consolidation or repurposing of certain closed-end funds; and (ix) performing other administrative functions necessary for the operation of the Funds, such as tax reporting, fulfilling regulatory filing requirements and call center services. The Boards reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: Each Board, including the Independent Board Members, also reviewed and considered the performance history of its Fund. In preparation for the April Meeting, the Boards were provided with reports independently prepared by Broadridge, which included a comprehensive analysis of the Funds’ performance. The Boards also reviewed a narrative and statistical analysis of the Broadridge data that was prepared by BlackRock. In connection with its review, each Board received and reviewed information regarding the investment performance, based on net asset value (NAV), of its Fund as compared to other funds in its applicable Broadridge category and the Customized Peer Group. The Boards were provided with a description of the methodology used by Broadridge to select peer funds and periodically met with Broadridge representatives to review its methodology. The Boards were provided with information on the composition of the Broadridge performance universes and expense universes. Each Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of its Fund throughout the year.

In evaluating performance, the Boards recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. Further, the Boards recognized that it is possible that long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme has the ability to affect long-term performance disproportionately.

The Board of MUA noted that for the one-, three- and five-year periods reported, MUA ranked first out of three funds, second out of three funds and first out of three funds, respectively, against its Customized Peer Group Composite.

The Board of MEN noted that for each of the one-, three- and five-year periods reported, MEN ranked first out of two funds against its Customized Peer Group Composite.

The Board of MHD noted that for the one-, three- and five-year periods reported, MHD ranked in the third, first and first quartiles, respectively, against its Customized Peer Group Composite. The Board and BlackRock reviewed MHD’s underperformance during the one-year period.

The Board of MUH noted that for the one-, three- and five-year periods reported, MUH ranked in the third, first and first quartiles, respectively, against its Customized Peer Group Composite. The Board and BlackRock reviewed MUH’s underperformance during the one-year period.

 

 

96    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Disclosure of Investment Advisory Agreements  (continued)

 

The Board of MUI noted that for the one-, three- and five-year periods reported, MUI ranked in the second, second and first quartiles, respectively, against its Customized Peer Group Composite.

The Board of MVT noted that for each of the one-, three- and five-year periods reported, MVT ranked in the first quartile against its Customized Peer Group Composite.

The Board of MUS noted that for each of the one-, three- and five-year periods reported, MUS ranked first out of two funds against its Customized Peer Group Composite.

BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for each of the Funds. The Composite measures a blend of total return and yield.

C. Consideration of the Advisory/Management Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds: Each Board, including the Independent Board Members, reviewed its Fund’s contractual management fee rate compared with the other funds in its Broadridge category. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. Each Board also compared the Fund’s total expense ratio, as well as its actual management fee rate as a percentage of total assets, to those of other funds in its Broadridge category. The total expense ratio represents a fund’s total net operating expenses, excluding any investment related expenses. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. The Boards considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Boards received and reviewed statements relating to BlackRock’s financial condition. The Boards reviewed BlackRock’s profitability methodology and were also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Funds. The Boards reviewed BlackRock’s profitability with respect to the Funds and other funds the Boards currently oversee for the year ended December 31, 2016 compared to available aggregate profitability data provided for the prior two years. The Boards reviewed BlackRock’s profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. As a result, calculating and comparing profitability at individual fund levels is difficult.

The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Boards reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly-traded asset management firms. The Boards considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

In addition, the Boards considered the cost of the services provided to the Funds by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management of the Funds and the other funds advised by BlackRock and its affiliates. As part of their analysis, the Boards reviewed BlackRock’s methodology in allocating its costs of managing the Funds, to the Funds. The Boards may receive and review information from independent third parties as part of their annual evaluation. The Boards considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Boards. The Boards further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing the Funds in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and institutional separate account product channels, as applicable.

The Board of MUA noted that MUA’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Expense Peers.

The Board of MEN noted that MEN’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Expense Peers.

The Board of MHD noted that MHD’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Expense Peers.

The Board of MUH noted that MUH’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile relative to the Expense Peers.

The Board of MUI noted that MUI’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile relative to the Expense Peers.

The Board of MVT noted that MVT’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Expense Peers.

The Board of MUS noted that MUS’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Expense Peers.

D. Economies of Scale: Each Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of its Fund increase. Each Board also considered the extent to which its Fund benefits from such economies in a variety of ways, and whether there should be changes in the

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENTS      97  


Disclosure of Investment Advisory Agreements  (continued)

 

advisory fee rate or breakpoint structure in order to enable the Fund to more fully participate in these economies of scale. Each Board considered its Fund’s asset levels and whether the current fee was appropriate.

Based on the Boards’ review and consideration of the issue, the Boards concluded that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering. They are typically priced at scale at a fund’s inception.

E. Other Factors Deemed Relevant by the Board Members: The Boards, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from their respective relationships with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Funds, including for administrative, securities lending and cash management services. The Boards also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Boards also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with their consideration of the Agreements, the Boards also received information regarding BlackRock’s brokerage and soft dollar practices. The Boards received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Boards noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their Fund shares in the secondary market if they believe that the Funds’ fees and expenses are too high or if they are dissatisfied with the performance of the Funds.

The Boards also considered the various notable initiatives and projects BlackRock performed in connection with its closed-end fund product line. These initiatives included the redemption of AMPS for the BlackRock closed-end funds with AMPS outstanding; developing equity shelf programs; efforts to eliminate product overlap with fund mergers; ongoing services to manage leverage that has become increasingly complex; periodic evaluation of share repurchases and other support initiatives for certain BlackRock funds; and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted BlackRock’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. BlackRock’s support services included, among other things: continuing communications concerning the redemption efforts related to AMPS; sponsoring and participating in conferences; communicating with closed-end fund analysts covering the BlackRock funds throughout the year; providing marketing and product updates for the closed-end funds; and maintaining and enhancing its closed-end fund website.

Conclusion

Each Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and its Fund for a one-year term ending June 30, 2018. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, each Board, including the Independent Board Members, was satisfied that the terms of the Advisory Agreement were fair and reasonable and in the best interest of its Fund and its shareholders. In arriving at its decision to approve the Advisory Agreement for its Fund, each Board did not identify any single factor or group of factors as, all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination. The contractual fee arrangements for the Funds reflect the results of several years of review by the Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. As a result, the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.

 

 

98    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Director and Officer Information

 

Richard E. Cavanagh, Chair of the Board and Director

Karen P. Robards, Vice Chair of the Board and Director

Michael J. Castellano, Director

Cynthia L. Egan, Director

Frank J. Fabozzi, Director

Jerrold B. Harris, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director

Catherine A. Lynch, Director

Barbara G. Novick, Director

John M. Perlowski, Director, President and Chief Executive Officer

Jonathan Diorio, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

Janey Ahn, Secretary

 

Effective December 31, 2017, Jerrold B. Harris will retire as Director of the Funds.

As of the date of this report, the portfolio managers of:

 

    MUS are Ted Jaeckel, Phillip Soccio, Peter Hayes and Christian Romaglino.
Investment Adviser  

VRDP Remarketing Agent

BlackRock Advisors, LLC  

Citigroup Global Markets Inc.(a)

Wilmington, DE 19809  

New York, NY 10179

 

Transfer Agent

 

VRDP Liquidity Provider

Computershare Trust Company, N.A.

 

Citibank, N.A.(a)

Canton, MA 02021

 

New York, NY 10179

 

VRDP Tender and Paying Agent and VMTP Redemption and Paying Agent

 

Accounting Agent and Custodian

The Bank of New York Mellon

 

State Street Bank and Trust Company

New York, NY 10289

 

Boston, MA 02111

 
 

Independent Registered
Public Accounting Firm

 

Deloitte & Touche LLP

 

Boston, MA 02116

 
 

Legal Counsel

 

Skadden, Arps, Slate, Meagher & Flom LLP

 

Boston, MA 02116

 
 

Address of the Funds

 

100 Bellevue Parkway

 

Wilmington, DE 19809

 
 
 
 

 

 

(a)  For MEN.

 

 

OFFICERS AND DIRECTORS      99  


Additional Information

 

Proxy Results

The Annual Meeting of Shareholders was held on July 25, 2017 for shareholders of record on May 30, 2017 to elect director nominees for each Fund. There were no broker non-votes with regard to any of the Funds.

Shareholders elected the Class I Directors as follows:

 

  

 

  Michael J. Castellano        R. Glenn Hubbard        W. Carl Kester  
     Votes For     Votes Withheld        Votes For     Votes Withheld        Votes For     Votes Withheld  

MUA

    33,287,824       1,264,265          33,325,483       1,226,606          33,276,069       1,276,020  
                 
  

 

       John M. Perlowski  
          Votes For     Votes Withheld  

MUA

 

       33,324,305       1,227,784  

For the Fund listed above, Directors whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are Richard E. Cavanagh, Cynthia L. Egan, Frank J. Fabozzi, Jerrold B. Harris, Catherine A. Lynch, Barbara G. Novick, and Karen P. Robards.

Shareholders elected the Directors as follows:

 

  

 

  Michael J. Castellano        Richard E. Cavanagh        Cynthia L. Egan  
     Votes For     Votes Withheld        Votes For     Votes Withheld        Votes For     Votes Withheld  

MEN

    27,850,695       590,040          27,650,414       790,321          27,937,612       503,123  

MHD

    13,448,374       268,713          13,357,116       359,971          13,492,525       224,562  

MUH

    10,623,721       167,948          10,621,537       170,132          10,687,560       104,109  

MUS

    12,214,106       458,573          12,169,171       503,508          12,367,828       304,851  

MUI

    34,273,278       2,141,091          33,943,967       2,470,402          34,358,409       2,055,960  

MVT

    19,752,220       395,731          19,732,389       415,562          19,792,650       355,301  
                 
  

 

  Frank J. Fabozzi(a)        Jerrold B. Harris        R. Glenn Hubbard  
     Votes For     Votes Withheld        Votes For     Votes Withheld        Votes For     Votes Withheld  

MEN

    1,425       0          27,516,145       924,590          27,618,847       821,888  

MHD

    837       0          13,336,127       380,960          13,375,629       341,458  

MUH

    550       0          10,597,037       194,632          10,701,564       90,105  

MUS

    870       0          12,150,574       522,105          12,308,089       364,590  

MUI

    2,871       0          33,940,865       2,473,504          33,977,782       2,436,587  

MVT

    1,400       0          19,759,656       388,295          19,763,372       384,579  
                 
  

 

  W. Carl Kester(a)        Catherine A. Lynch        Barbara G. Novick  
     Votes For     Votes Withheld        Votes For     Votes Withheld        Votes For     Votes Withheld  

MEN

    1,425       0          27,945,622       495,113          27,936,860       503,875  

MHD

    837       0          13,492,525       224,562          13,493,635       223,452  

MUH

    550       0          10,650,768       140,901          10,688,360       103,309  

MUS

    870       0          12,335,337       337,342          12,373,579       299,100  

MUI

    2,871       0          34,355,633       2,058,736          34,372,740       2,041,629  

MVT

    1,400       0          19,707,477       440,474          19,815,843       332,108  
                 
  

 

       John M. Perlowski        Karen P. Robards  
          Votes For     Votes Withheld        Votes For     Votes Withheld  

MEN

 

       27,908,231       532,504          27,951,973       488,762  

MHD

 

       13,490,356       226,731          13,474,048       243,039  

MUH

 

       10,702,130       89,539          10,695,298       96,371  

MUS

 

       12,335,267       337,412          12,290,401       382,278  

MUI

 

       34,333,932       2,080,437          34,363,791       2,050,578  

MVT

 

       19,849,716       298,235          19,781,142       366,809  

 

  (a) Voted on by holders of preferred shares only.  

Fund Certification

Certain 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. The Funds filed with the SEC the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

 

 

100    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Additional Information  (continued)

 

Dividend Policy

Each Fund’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of 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 distributions paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

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.

During the period, there were no material changes in the Funds’ investment objectives or policies or to the Funds’ charters or by-laws that would delay or prevent a change of control of the Funds that were not approved by the shareholders or in the principal risk factors associated with investment in the Funds. Except as disclosed on page 100, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolios.

Effective September 26, 2016, BlackRock implemented a new methodology for calculating “effective duration” for BlackRock’s municipal bond portfolios. The new methodology replaces the model previously used by BlackRock to evaluate municipal bond duration and is a common indicator of an investment’s sensitivity to interest rate movements. The new methodology is applied to each Fund’s duration reported for periods after September 26, 2016.

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisers, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, 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 the Funds at (800) 882-0052.

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 the operation of the Public Reference Room or how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

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 upon request and without charge (1) by calling (800) 882-0052; (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) 882-0052; and (2) on the SEC’s website at http://www.sec.gov.

 

 

ADDITIONAL INFORMATION      101  


Additional Information  (continued)

 

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 as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

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.

 

 

102    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Glossary of Terms Used in this Report

 

Portfolio Abbreviations
AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BAN    Bond Anticipation Notes
BAM    Build America Mutual Assurance Co.
BARB    Building Aid 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
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
GTD    Guaranteed
HFA    Housing Finance Agency
IDA    Industrial Development Authority
ISD    Independent School District
LRB    Lease Revenue Bonds
M/F    Multi-Family
MRB    Mortgage Revenue Bonds
NPFGC    National Public Finance Guarantee Corp.
PSF    Permanent School Fund
RB    Revenue Bonds
S/F    Single-Family

 

 

GLOSSARY OF TERMS USED IN THIS REPORT      103  


This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. 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 short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

 

LOGO

 

CEMUNI7-10/17-SAR    LOGO


Item 2 – Code of Ethics – During the period covered by this report, the code of ethics was amended to clarify an inconsistency as to whom persons covered by the code should report suspected violations of the code. The amendment clarifies that such reporting should be made to BlackRock Advisors, LLC’s General Counsel, and retains the alternative option of anonymous reporting following “whistleblower” policies. Other non-material changes were also made in connection with this amendment. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-882-0052, option 4.

 

Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report

 

Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report

 

Item 5 – Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

 

Item 6 – Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report

 

Item 8 – Portfolio Managers of Closed-End Management Investment Companies

(a) Not Applicable to this semi-annual report

(b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

 

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

 

Item 10 – Submission of Matters to a Vote of Security Holders – 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 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

 

2


Item 13 – Exhibits attached hereto

(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(a)(4) – Not Applicable

(b) – Certifications – Attached hereto

 

3


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 MuniAssets Fund, Inc.

 

   By:   

/s/ John M. Perlowski

  
      John M. Perlowski   
      Chief Executive Officer (principal executive officer) of
      BlackRock MuniAssets Fund, Inc.

Date: January 5, 2018

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 MuniAssets Fund, Inc.
   Date: January 5, 2018
   By:   

/s/ Neal J. Andrews

  
      Neal J. Andrews   
      Chief Financial Officer (principal financial officer) of
      BlackRock MuniAssets Fund, Inc.

Date: January 5, 2018

 

4