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 811-21348
Name of Fund: BlackRock Muni Intermediate Duration Fund, Inc. (MUI)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Muni Intermediate Duration 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: 04/30/2012
Date of reporting period: 10/31/2011
Item 1 – Report to Stockholders
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October 31, 2011 |
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Semi-Annual Report (Unaudited) |
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BlackRock MuniAssets Fund, Inc. (MUA) |
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BlackRock MuniEnhanced Fund, Inc. (MEN) |
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BlackRock MuniHoldings Fund, Inc. (MHD) |
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BlackRock MuniHoldings Fund II, Inc. (MUH) |
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BlackRock MuniHoldings Quality Fund, Inc. (MUS) |
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BlackRock Muni Intermediate Duration Fund, Inc. (MUI) |
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BlackRock MuniVest Fund II, Inc. (MVT) |
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Not FDIC Insured § No Bank Guarantee § May Lose Value |
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Table of Contents |
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Page |
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3 |
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Semi-Annual Report: |
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4 |
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5 |
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12 |
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12 |
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Financial Statements: |
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13 |
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48 |
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49 |
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50 |
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52 |
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53 |
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60 |
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Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements |
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68 |
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72 |
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73 |
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2 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
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One year ago, the global economy appeared to solidly be in recovery mode and investors were optimistic as the US Federal Reserve launched its second round of quantitative easing. Stock markets rallied despite ongoing sovereign debt problems in Europe and inflationary pressures looming over emerging markets. Fixed income markets, however, saw yields move sharply upward (pushing prices down), especially on the long end of the historically steep yield curve. While high yield bonds benefited from the risk rally, most fixed income sectors declined in the fourth quarter of 2010. The tax-exempt municipal market faced additional headwinds as it became evident that the Build America Bond program would not be extended and municipal finance troubles burgeoned.
Early 2011 saw spikes of volatility as political turmoil swept across the Middle East/North Africa region and prices of oil and other commodities soared. Natural disasters in Japan disrupted industrial supply chains and concerns mounted regarding US debt and deficit issues. Nevertheless, equities generally performed well early in the year as investors chose to focus on the continuing stream of strong corporate earnings and positive economic data. Credit markets were surprisingly resilient in this environment and yields regained relative stability in 2011. The tax-exempt market saw relief from its headwinds and steadily recovered from its fourth-quarter lows. Equities, commodities and high yield bonds outpaced higher-quality assets as investors increased their risk tolerance.
However, the environment changed dramatically in the middle of the second quarter. Markets dropped sharply in May when fears mounted over the possibility of Greece defaulting on its debt, rekindling fears about the broader sovereign debt crisis. Concurrently, economic data signaled that the recovery had slowed in the United States and other developed nations. Confidence was further shaken by the prolonged debt ceiling debate in Washington, DC. On August 5th, Standard & Poor’s downgraded the US government’s credit rating and turmoil erupted in financial markets around the world. Extraordinary levels of volatility persisted in the months that followed as Greece teetered on the brink of default. Financial problems intensified in Italy and Spain and both countries faced credit rating downgrades. Debt worries spread to the core European nations of France and Germany, and the entire euro-zone banking system came under intense pressure. Late in the summer, economic data out of the United States and Europe grew increasingly bleak while China and other emerging economies began to show signs of slowing growth. By the end of the third quarter, equity markets had fallen nearly 20% from their April peak while safe-haven assets such as US Treasuries, gold and the Swiss franc skyrocketed.
October brought enough positive economic data to assuage fears of a double-dip recession in the United States and corporate earnings continued to be strong. Additionally, European policymakers demonstrated an increased willingness to unite in their struggle to resolve the region’s debt and banking crisis. These encouraging developments brought many investors back from the sidelines and risk assets rallied through the month, albeit with large daily swings as investor reactions to news from Europe vacillated between faith and skepticism.
Overall, lower-risk investments including US Treasuries, municipal securities and investment grade credits posted gains for the 6- and 12-month periods ended October 31, 2011. Risk assets, including equities and high yield debt, broadly declined over the six months; however, US stocks and high yield bonds remained in positive territory on a 12-month basis. Continued low short-term interest rates kept yields on money market securities near their all-time lows. While markets remain volatile and uncertainties abound, BlackRock remains dedicated to finding opportunities and managing risk in this environment.
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Sincerely, |
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Rob Kapito |
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President, BlackRock Advisors, LLC |
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“While markets remain volatile and uncertainties abound, BlackRock remains dedicated to finding opportunities and managing risk in this environment.” |
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Rob Kapito |
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President, BlackRock Advisors, LLC |
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Total Returns as of October 31, 2011 |
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6-month |
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12-month |
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US large cap equities |
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(7.11 |
)% |
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8.09 |
% |
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(S&P 500® Index) |
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US small cap equities |
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(13.76 |
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6.71 |
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(Russell 2000® Index) |
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International equities |
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(14.90 |
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(4.08 |
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(MSCI Europe, Australasia, |
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Far East Index) |
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Emerging market |
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(15.91 |
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(7.72 |
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equities (MSCI Emerging |
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Markets Index) |
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3-month Treasury |
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0.04 |
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0.13 |
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bill (BofA Merrill Lynch |
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3-Month Treasury |
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Bill Index) |
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US Treasury securities |
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12.11 |
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7.79 |
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(BofA Merrill Lynch 10- |
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Year US Treasury Index) |
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US investment grade |
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4.98 |
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5.00 |
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bonds (Barclays |
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Capital US Aggregate |
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Bond Index) |
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Tax-exempt municipal |
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5.56 |
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3.78 |
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bonds (Barclays Capital |
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Municipal Bond Index) |
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US high yield bonds |
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(0.95 |
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5.16 |
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(Barclays Capital US |
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Corporate High Yield 2% |
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Issuer Capped Index) |
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Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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THIS PAGE NOT PART OF YOUR FUND REPORT |
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For the 12-Month Period Ended October 31, 2011 |
At the outset of the 12-month period, the municipal bond market was faced with a “perfect storm” of events that ultimately resulted in losses for the fourth quarter of 2010 at a level not seen since the Fed tightening cycle of 1994. US Treasury yields lost support due to concerns over the federal deficit and municipal valuations suffered a quick and severe setback, as it became evident the Build America Bond (“BAB”) program would expire at the end of 2010. The program had opened the taxable market to municipal issuers, successfully alleviating supply pressure in the traditional tax-exempt marketplace and bringing down yields in that space.
Towards the end of 2010, news about municipal finance troubles mounted and damaged confidence among retail investors. From mid-November through year end, weekly outflows from municipal mutual funds averaged over $2.5 billion. Political uncertainty surrounding the midterm elections and tax policies exacerbated the situation. These conditions combined with seasonal illiquidity sapped willful market participation from the trading community. December brought declining demand with no comparable reduction in supply as issuers rushed their deals to market before the BAB program was retired. This supply-demand imbalance led to wider quality spreads and higher yields.
Demand is usually strong at the beginning of a new year, but retail investors continued to move away from municipal mutual funds in 2011. From the middle of November 2010, outflows persisted for 29 consecutive weeks, totaling $35.1 billion before the trend finally broke in June. Weak demand has been counterbalanced by lower supply in 2011. According to Thomson Reuters, year-to-date through October, new issuance was down 34% compared to the same period last year. Higher interest rates during the first quarter, fiscal policy changes and a reduced need for municipal borrowing were among the factors that deterred issuers from bringing new deals to the market. In this positive technical environment, the S&P/Investortools Main Municipal Bond Index returned 8.05% for the first ten months of 2011, as municipal bonds outperformed most other fixed income asset classes year-to-date.
On August 5th, Standard & Poor’s (“S&P’s”) downgraded the US government credit rating from AAA to AA+, leading to the downgrade of approximately 11,000 municipal issues directly linked to the US debt rating. Nevertheless, the municipal market posted solid gains for the month of August, aided primarily by an exuberant Treasury market, severe volatility in US equities and continued supply constraint in the primary municipal market. Increased demand from both traditional and non-traditional buyers pushed long-term municipal bond yields lower, resulting in a curve-flattening trend that continued through period end.
Overall, the municipal yield curve flattened during the period from October 31, 2010 to October 31, 2011. As measured by Thomson Municipal Market Data, yields declined by 11 basis points (“bps”) to 3.75% on AAA quality-rated 30-year municipal bonds and by 12 bps to 2.39%, on 10-year bonds, while yields on 5-year issues rose 6 bps to 1.26%. With the exception of the 2- to 5-year range, the yield spreads between maturities decreased over the past year. The most significant decrease was seen in the 5- to 10-year range, where the spread tightened by 18 bps, while the overall slope between 2- and 30-year maturities decreased by 9 bps to 3.31%.
The fundamental picture for municipalities is improving. Austerity is the general theme across the country, while a small number of states continue to rely on the “kick the can” approach to close their shortfalls, using aggressive revenue projections and accounting gimmicks. It has been nearly a year since the first highly publicized interview about the fiscal problems plaguing state and local governments. Thus far, the prophecy of widespread defaults across the municipal market has not materialized. According to S&P’s, municipal defaults in 2011 are down 69% compared to the same period in 2010. Year-to-date monetary defaults in the S&P/Investortools Main Municipal Bond Index total roughly $750 million, representing less than 0.5% of the index. BlackRock maintains the view that municipal bond defaults will remain in the periphery and the overall market is fundamentally sound. We continue to recognize that careful credit research and security selection remain imperative amid uncertainty in this economic environment.
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
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4 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
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BlackRock MuniAssets Fund, Inc. |
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Fund Overview |
BlackRock MuniAssets Fund, Inc.’s (MUA) (the “Fund”) investment objective is to provide high current income exempt from federal income taxes by investing primarily in a portfolio of medium- to lower-grade or unrated municipal obligations, the interest on which, in the opinion of bond counsel, is exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests at least 65% of its assets in municipal bonds that are rated in the medium to lower categories by nationally recognized rating services (for example, Baa or lower by Moody’s Investors Service, Inc. or BBB or lower by Standard & Poor’s Corporation) or non-rated securities which are of comparable quality. The Fund may invest directly in such securities or synthetically through the use of derivatives.
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No assurance can be given that the Fund’s investment objective will be achieved. |
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Performance |
For the six months ended October 31, 2011, the Fund returned 10.35% based on market price and 7.71% based on net asset value (“NAV”). For the same period, the closed-end Lipper High Yield Municipal Debt Funds category posted an average return of 9.74% based on market price and 9.48% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund performed well due to its yield-curve-flattening bias and sector allocation. The Fund has consistently emphasized longer-dated securities in order to benefit from long-term rates declining faster than short-term rates, a scenario that occurred during the period. Concentrated holdings in health, transportation and essential service issues had a positive impact on Fund returns. Security selection in a few sectors detracted from performance, as did the Fund’s low exposure to the top-performing tobacco sector. Additionally, the distribution yield generated by the Fund’s holdings fell below the average of its Lipper category peers, causing a drag on the Fund’s total return for the period.
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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. |
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Fund Information |
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Symbol on New York Stock Exchange (“NYSE”) |
MUA |
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Initial Offering Date |
June 25, 1993 |
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Yield on Closing Market Price as of October 31, 2011 ($12.05)1 |
6.22% |
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Tax Equivalent Yield2 |
9.57% |
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Current Monthly Distribution per Common Share3 |
$0.0625 |
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Current Annualized Distribution per Common Share3 |
$0.7500 |
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Leverage as of October 31, 20114 |
7% |
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1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
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2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
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3 |
The distribution rate is not constant and is subject to change. |
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4 |
Represents tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Fund’s market price and NAV per share:
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4/30/11 |
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Change |
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High |
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Low |
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Market Price |
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$ |
12.05 |
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$ |
11.27 |
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6.92 |
% |
$ |
12.17 |
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$ |
10.97 |
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Net Asset Value |
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$ |
12.67 |
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$ |
12.14 |
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4.37 |
% |
$ |
12.85 |
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$ |
12.14 |
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The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
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Sector Allocations |
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4/30/11 |
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Health |
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29 |
% |
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27 |
% |
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Corporate |
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19 |
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22 |
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Transportation |
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14 |
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15 |
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County/City/Special District/School District |
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13 |
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14 |
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Utilities |
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11 |
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8 |
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Education |
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6 |
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6 |
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State |
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5 |
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3 |
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Tobacco |
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3 |
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1 |
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Housing |
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— |
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4 |
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Credit Quality Allocations5 |
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4/30/11 |
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AAA/Aaa |
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1 |
% |
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3 |
% |
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AA/Aa |
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13 |
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8 |
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A |
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9 |
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12 |
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BBB/Baa |
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28 |
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28 |
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BB/Ba |
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8 |
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7 |
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B |
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7 |
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5 |
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CCC/Caa |
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4 |
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5 |
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CC/Ca |
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1 |
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1 |
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Not Rated6 |
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29 |
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31 |
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5 |
Using the higher of S&P’s or Moody’s Investors Service (“Moody’s”) ratings. |
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6 |
The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2011 and April 30, 2011, the market value of these securities was $25,914,226, representing 5% and $25,268,218, representing 6%, respectively, of the Fund’s long-term investments. |
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SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
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Fund Summary as of October 31, 2011 |
BlackRock MuniEnhanced Fund, Inc. |
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Fund Overview |
BlackRock MuniEnhanced Fund, Inc.’s (MEN) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests primarily in long-term municipal bonds that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
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Performance |
For the six months ended October 31, 2011, the Fund returned 11.73% based on market price and 12.08% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.60% based on market price and 11.08% based on NAV. During the period, Lipper combined the General Municipal Debt Funds (Leveraged) and Insured Municipal Debt Funds (Leveraged) categories into one General & Insured Municipal Debt Funds (Leveraged) category. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s performance was positively impacted by its longer duration holdings (those with higher sensitivity to interest rate movements) as yields fell during the period (bond prices rise when their yields fall.) The Fund also benefited from its yield curve positioning. The Fund favored longer-term securities, which outperformed those with short and intermediate maturities as rates fell more on the long end of the curve. Given the broad rally in the municipal market during the period, most sectors performed well. However, the Fund’s exposure to bonds with shorter maturities or shorter call dates detracted from performance as the yield curve flattened.
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.
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Fund Information |
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Symbol on NYSE |
MEN |
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Initial Offering Date |
March 2, 1989 |
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Yield on Closing Market Price as of October 31, 2011 ($10.81)1 |
6.33% |
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Tax Equivalent Yield2 |
9.74% |
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Current Monthly Distribution per Common Share3 |
$0.0570 |
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Current Annualized Distribution per Common Share3 |
$0.6840 |
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Leverage as of October 31, 20114 |
39% |
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1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
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2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
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3 |
The distribution rate is not constant and is subject to change. |
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4 |
Represents Variable Rate Demand Preferred Shares (“VRDP Shares”) and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Fund’s market price and NAV per share:
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10/31/11 |
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4/30/11 |
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Change |
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High |
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Low |
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Market Price |
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$ |
10.81 |
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$ |
9.99 |
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8.21 |
% |
$ |
11.20 |
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$ |
9.65 |
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Net Asset Value |
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$ |
11.18 |
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$ |
10.30 |
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8.54 |
% |
$ |
11.38 |
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$ |
10.30 |
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The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
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Sector Allocations |
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4/30/11 |
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County/City/Special District/School District |
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29 |
% |
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29 |
% |
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Transportation |
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23 |
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23 |
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State |
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18 |
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19 |
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Utilities |
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14 |
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14 |
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Health |
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8 |
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6 |
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Education |
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5 |
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5 |
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Corporate |
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2 |
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2 |
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Housing |
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1 |
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2 |
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Credit Quality Allocations5 |
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4/30/11 |
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AAA/Aaa |
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12 |
% |
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12 |
% |
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AA/Aa |
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58 |
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59 |
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A |
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25 |
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25 |
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BBB/Baa |
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4 |
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4 |
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B |
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1 |
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— |
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5 |
Using the higher of S&P’s or Moody’s ratings. |
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6 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
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Fund Summary as of October 31, 2011 |
BlackRock MuniHoldings Fund, Inc. |
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Fund Overview |
BlackRock MuniHoldings Fund, Inc.’s (MHD) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
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|
|
Performance |
For the six months ended October 31, 2011, the Fund returned 13.46% based on market price and 12.30% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.60% based on market price and 11.08% based on NAV. During the period, Lipper combined the General Municipal Debt Funds (Leveraged) and Insured Municipal Debt Funds (Leveraged) categories into one General & Insured Municipal Debt Funds (Leveraged) category. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund performed well due to its yield-curve-flattening bias and duration positioning. The Fund has consistently emphasized longer-dated securities in order to benefit from long-term rates declining faster than short-term rates, a scenario that occurred during the period. In addition, the Fund’s holdings generated a high distribution yield, which in the aggregate had a meaningful impact on returns. Sector concentrations in health and transportation had a positive impact on performance, as did the avoidance of pre-refunded and escrowed issues, which underperformed the broader market. Detracting from performance was the Fund’s long-standing focus on corporate-related debt, which modestly underperformed for the six-month period. Additionally, low exposure to the top-performing tobacco sector was a modest impediment to performance.
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|
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. |
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|
Fund Information |
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|
|
|
|
Symbol on NYSE |
MHD |
|
Initial Offering Date |
May 2, 1997 |
|
Yield on Closing Market Price as of October 31, 2011 ($15.90)1 |
6.83% |
|
Tax Equivalent Yield2 |
10.51% |
|
Current Monthly Distribution per Common Share3 |
$0.0905 |
|
Current Annualized Distribution per Common Share3 |
$1.0860 |
|
Leverage as of October 31, 20114 |
36% |
|
|
|
|
|
|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
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|
|
|
|
|
2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
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|
|
|
|
|
3 |
The distribution rate is not constant and is subject to change. |
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|
|
|
|
|
4 |
Represents Auction Market Preferred Shares (“AMPS”) and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to AMPS and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Fund’s market price and NAV per share:
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
Change |
|
High |
|
Low |
|
|||||
|
Market Price |
|
$ |
15.90 |
|
$ |
14.51 |
|
|
9.58 |
% |
$ |
16.28 |
|
$ |
14.25 |
|
|
Net Asset Value |
|
$ |
15.91 |
|
$ |
14.67 |
|
|
8.45 |
% |
$ |
16.17 |
|
$ |
14.67 |
|
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
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Sector Allocations |
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|
|
|
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|
|
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|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
||
|
Health |
|
|
22 |
% |
|
23 |
% |
|
Transportation |
|
|
18 |
|
|
16 |
|
|
State |
|
|
15 |
|
|
12 |
|
|
Corporate |
|
|
11 |
|
|
12 |
|
|
Utilities |
|
|
11 |
|
|
11 |
|
|
County/City/Special District/School District |
|
|
10 |
|
|
10 |
|
|
Education |
|
|
9 |
|
|
9 |
|
|
Housing |
|
|
3 |
|
|
6 |
|
|
Tobacco |
|
|
1 |
|
|
1 |
|
|
|
|
|
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|
|
|
|
Credit Quality Allocations5 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
||
|
AAA/Aaa |
|
|
8 |
% |
|
12 |
% |
|
AA/Aa |
|
|
42 |
|
|
40 |
|
|
A |
|
|
23 |
|
|
22 |
|
|
BBB/Baa |
|
|
13 |
|
|
13 |
|
|
BB/Ba |
|
|
2 |
|
|
2 |
|
|
B |
|
|
3 |
|
|
2 |
|
|
CCC/Caa |
|
|
1 |
|
|
1 |
|
|
Not Rated |
|
|
8 |
|
|
8 |
6 |
|
|
|
|
|
|
5 |
Using the higher of S&P’s or Moody’s ratings. |
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6 |
The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2011, the market value of these securities was $3,863,321, representing 1% of the Fund’s long-term investments. |
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|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
7 |
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|
|
|
|
Fund Summary as of October 31, 2011 |
BlackRock MuniHoldings Fund II, Inc. |
|
|
|
|
Fund Overview |
|
BlackRock MuniHoldings Fund II, Inc.’s (MUH) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
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|
|
Performance |
For the six months ended October 31, 2011, the Fund returned 16.61% based on market price and 12.25% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.60% based on market price and 11.08% based on NAV. During the period, Lipper combined the General Municipal Debt Funds (Leveraged) and Insured Municipal Debt Funds (Leveraged) categories into one General & Insured Municipal Debt Funds (Leveraged) category. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund performed well due to its yield-curve-flattening bias and duration positioning. The Fund has consistently emphasized longer-dated securities in order to benefit from long-term rates declining faster than short-term rates, a scenario that occurred during the period. In addition, the Fund’s holdings generated a high distribution yield, which in the aggregate had a meaningful impact on returns. Sector concentrations in health and transportation had a positive impact on performance, as did the avoidance of pre-refunded and escrowed issues, which underperformed the broader market. Detracting from performance was the Fund’s long-standing focus on corporate-related debt, which modestly underperformed for the six-month period. Additionally, low exposure to the top-performing tobacco sector was a modest impediment to performance.
|
|
|
|
|
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. |
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|
|
Fund Information |
|
|
|
|
Symbol on NYSE |
MUH |
|
Initial Offering Date |
February 27, 1998 |
|
Yield on Closing Market Price as of October 31, 2011 ($15.05)1 |
6.50% |
|
Tax Equivalent Yield2 |
10.00% |
|
Current Monthly Distribution per Common Share3 |
$0.0815 |
|
Current Annualized Distribution per Common Share3 |
$0.9780 |
|
Leverage as of October 31, 20114 |
35% |
|
|
|
|
|
|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
|
|
|
|
|
|
2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
|
|
|
|
|
|
3 |
The distribution rate is not constant and is subject to change. |
|
|
|
|
|
|
4 |
Represents AMPS and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to AMPS and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Fund’s market price and NAV per share:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
Change |
|
High |
|
Low |
|
|||||
|
Market Price |
|
$ |
15.05 |
|
$ |
13.35 |
|
|
12.73 |
% |
$ |
15.12 |
|
$ |
13.08 |
|
|
Net Asset Value |
|
$ |
14.91 |
|
$ |
13.74 |
|
|
8.52 |
% |
$ |
15.18 |
|
$ |
13.74 |
|
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
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|
|
|
|
|
|
|
Sector Allocations |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
||
|
Health |
|
|
21 |
% |
|
22 |
% |
|
Transportation |
|
|
16 |
|
|
14 |
|
|
State |
|
|
16 |
|
|
13 |
|
|
County/City/Special District/School District |
|
|
15 |
|
|
14 |
|
|
Corporate |
|
|
12 |
|
|
13 |
|
|
Education |
|
|
9 |
|
|
9 |
|
|
Utilities |
|
|
8 |
|
|
9 |
|
|
Housing |
|
|
2 |
|
|
5 |
|
|
Tobacco |
|
|
1 |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Allocations5 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
||
|
AAA/Aaa |
|
|
8 |
% |
|
13 |
% |
|
AA/Aa |
|
|
46 |
|
|
42 |
|
|
A |
|
|
19 |
|
|
20 |
|
|
BBB/Baa |
|
|
14 |
|
|
13 |
|
|
BB/Ba |
|
|
2 |
|
|
1 |
|
|
B |
|
|
2 |
|
|
1 |
|
|
CCC/Caa |
|
|
1 |
|
|
2 |
|
|
Not Rated6 |
|
|
8 |
|
|
8 |
|
|
|
|
|
|
|
5 |
Using the higher of S&P’s or Moody’s ratings. |
|
|
|
|
|
|
6 |
The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2011 and April 30, 2011, the market value of these securities was $6,182,594, representing 2% and $1,064,679, representing 0%, respectively, of the Fund’s long-term investments. |
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|
|
|
|
|
|
8 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Fund Summary as of October 31, 2011 |
BlackRock MuniHoldings Quality Fund, Inc. |
|
|
|
|
Fund Overview |
|
BlackRock MuniHoldings Quality Fund, Inc.’s (MUS) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests at least 80% of its assets in investment grade municipal obligations with remaining maturities of one year or more at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
|
|
|
Performance |
For the six months ended October 31, 2011, the Fund returned 9.19% based on market price and 12.51% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.60% based on market price and 11.08% based on NAV. During the period, Lipper combined the General Municipal Debt Funds (Leveraged) and Insured Municipal Debt Funds (Leveraged) categories into one General & Insured Municipal Debt Funds (Leveraged) category. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s exposure to bonds with longer-dated maturities had a positive impact on performance as the municipal yield curve flattened during the period (bond prices rise when their yields fall.) The Fund’s long-dated holdings in the transportation sector contributed most to the price appreciation in the Fund. Holdings of long-dated insured bonds also performed particularly well. Detracting from performance was the Fund’s exposure to the housing sector, which underperformed the broader municipal bond market for the period.
|
|
|
|
|
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results. |
|
|
|
Fund Information |
|
|
|
|
Symbol on NYSE |
MUS |
|
Initial Offering Date |
May 1, 1998 |
|
Yield on Closing Market Price as of October 31, 2011 ($12.99)1 |
6.84% |
|
Tax Equivalent Yield2 |
10.52% |
|
Current Monthly Distribution per Common Share3 |
$0.0740 |
|
Current Annualized Distribution per Common Share3 |
$0.8880 |
|
Leverage as of October 31, 20114 |
40% |
|
|
|
|
|
|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
|
|
|
|
|
|
2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
|
|
|
|
|
|
3 |
The distribution rate is not constant and is subject to change. |
|
|
|
|
|
|
4 |
Represents AMPS and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to AMPS and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Fund’s market price and NAV per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
Change |
|
High |
|
Low |
|
|||||
|
Market Price |
|
$ |
12.99 |
|
$ |
12.31 |
|
|
5.52 |
% |
$ |
13.53 |
|
$ |
11.73 |
|
|
Net Asset Value |
|
$ |
13.57 |
|
$ |
12.48 |
|
|
8.73 |
% |
$ |
13.84 |
|
$ |
12.48 |
|
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
|
|
|
|
|
|
|
|
|
|
Sector Allocations |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
||
|
County/City/Special District/School District |
|
|
27 |
% |
|
26 |
% |
|
Utilities |
|
|
23 |
|
|
24 |
|
|
Transportation |
|
|
23 |
|
|
21 |
|
|
State |
|
|
12 |
|
|
12 |
|
|
Health |
|
|
9 |
|
|
9 |
|
|
Education |
|
|
2 |
|
|
5 |
|
|
Housing |
|
|
2 |
|
|
2 |
|
|
Corporate |
|
|
1 |
|
|
1 |
|
|
Tobacco |
|
|
1 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Allocations5 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
||
|
AAA/Aaa |
|
|
8 |
% |
|
9 |
% |
|
AA/Aa |
|
|
71 |
|
|
69 |
|
|
A |
|
|
19 |
|
|
18 |
|
|
BBB/Baa |
|
|
1 |
|
|
4 |
|
|
B |
|
|
1 |
|
|
— |
|
|
|
|
|
|
|
5 |
Using the higher of S&P’s or Moody’s ratings. |
|
|
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
9 |
|
|
|
|
|
|
|
Fund Summary as of October 31, 2011 |
BlackRock Muni Intermediate Duration Fund, Inc. |
|
|
|
Fund Overview |
BlackRock Muni Intermediate Duration Fund, Inc.’s (MUI) (the “Fund”) investment objective is to provide common shareholders with high current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests at least 75% of its assets in municipal bonds rated investment grade and invests at least 80% of its assets in municipal bonds with a duration of three to ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
|
|
|
Performance |
For the six months ended October 31, 2011, the Fund returned 10.27% based on market price and 8.44% based on NAV. For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 7.85% based on market price and 6.69% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. As the municipal yield curve moved lower (interest rates declined) and flattened (rates on the longer end of the curve fell the most), the Fund benefited from its slightly long duration bias (preference for securities with a higher sensitivity to interest rate movements) and its positioning toward the longer end of the municipal yield curve (preference for bonds with longer-dated maturities), within its intermediate duration mandate. The Fund also benefited from its holdings in tax-backed, development district and health care bonds. Detracting from performance were the Fund’s exposures to the housing and corporate-related sectors, which underperformed the broader municipal bond market for the six-month period.
|
|
|
|
|
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results. |
|
|
|
Fund Information |
|
|
|
|
|
|
|
Symbol on NYSE |
MUI |
|
Initial Offering Date |
August 1, 2003 |
|
Yield on Closing Market Price as of October 31, 2011 ($14.61)1 |
5.87% |
|
Tax Equivalent Yield2 |
9.03% |
|
Current Monthly Distribution per Common Share3 |
$0.0715 |
|
Current Annualized Distribution per Common Share3 |
$0.8580 |
|
Leverage as of October 31, 20114 |
38% |
|
|
|
|
|
|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
|
|
|
|
|
|
2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
|
|
|
|
|
|
3 |
The distribution rate is not constant and is subject to change. |
|
|
|
|
|
|
4 |
Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Fund’s market price and NAV per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
Change |
|
High |
|
Low |
|
|||||
|
Market Price |
|
$ |
14.61 |
|
$ |
13.65 |
|
|
7.03 |
% |
$ |
15.00 |
|
$ |
13.27 |
|
|
Net Asset Value |
|
$ |
15.21 |
|
$ |
14.45 |
|
|
5.26 |
% |
$ |
15.56 |
|
$ |
14.45 |
|
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
|
|
|
|
|
|
|
|
|
|
Sector Allocations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
||
|
County/City/Special District/School District |
|
|
25 |
% |
|
21 |
% |
|
State |
|
|
17 |
|
|
22 |
|
|
Health |
|
|
13 |
|
|
15 |
|
|
Corporate |
|
|
11 |
|
|
11 |
|
|
Education |
|
|
11 |
|
|
8 |
|
|
Transportation |
|
|
9 |
|
|
8 |
|
|
Utilities |
|
|
7 |
|
|
5 |
|
|
Tobacco |
|
|
4 |
|
|
7 |
|
|
Housing |
|
|
3 |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Allocations5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
||
|
AAA/Aaa |
|
|
11 |
% |
|
14 |
% |
|
AA/Aa |
|
|
47 |
|
|
39 |
|
|
A |
|
|
22 |
|
|
25 |
|
|
BBB/Baa |
|
|
9 |
|
|
11 |
|
|
BB/Ba |
|
|
2 |
|
|
1 |
|
|
B |
|
|
1 |
|
|
1 |
|
|
CCC/Caa |
|
|
1 |
|
|
1 |
|
|
Not Rated6 |
|
|
7 |
|
|
8 |
|
|
|
|
|
|
|
5 |
Using the higher of S&P’s or Moody’s ratings. |
|
|
|
|
|
|
6 |
The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2011 and April 30, 2011, the market value of these securities was $4,058,666, representing 0% and $21,293,420, representing 2%, respectively, of the Fund’s long-term investments. |
|
|
|
|
|
|
|
|
|
10 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Fund Summary as of October 31, 2011 |
BlackRock MuniVest Fund II, Inc. |
|
|
|
Fund Overview |
BlackRock MuniVest Fund II, Inc.’s (MVT) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
|
|
|
Performance |
For the six months ended October 31, 2011, the Fund returned 14.65% based on market price and 12.39% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.60% based on market price and 11.08% based on NAV. During the period, Lipper combined the General Municipal Debt Funds (Leveraged) and Insured Municipal Debt Funds (Leveraged) categories into one General & Insured Municipal Debt Funds (Leveraged) category. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund performed well due to its yield-curve-flattening bias and duration positioning. The Fund has consistently emphasized longer-dated securities in order to benefit from long-term rates declining faster than short-term rates, a scenario that occurred during the period. In addition, the Fund’s holdings generated a high distribution yield, which in the aggregate had a meaningful impact on returns. Sector concentrations in health and transportation had a positive impact on performance, as did holding only minimal exposure to pre-refunded and escrowed issues, which underperformed the broader market. Detracting from performance was the Fund’s long-standing focus on corporate-related debt, which modestly underperformed for the six-month period. Additionally, low exposure to the top-performing tobacco sector was a modest impediment to performance.
|
|
|
|
|
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results. |
|
|
|
Fund Information |
|
|
|
|
Symbol on NYSE |
MVT |
|
Initial Offering Date |
March 29, 1993 |
|
Yield on Closing Market Price as of October 31, 2011 ($15.16)1 |
7.01% |
|
Tax Equivalent Yield2 |
10.78% |
|
Current Monthly Distribution per Common Share3 |
$0.0885 |
|
Current Annualized Distribution per Common Share3 |
$1.0620 |
|
Leverage as of October 31, 20114 |
41% |
|
|
|
|
|
|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
|
|
|
|
|
|
2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
|
|
|
|
|
|
3 |
The distribution rate is not constant and is subject to change. |
|
|
|
|
|
|
4 |
Represents AMPS and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to AMPS and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Fund’s market price and NAV per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
Change |
|
High |
|
Low |
|
|||||
|
Market Price |
|
$ |
15.16 |
|
$ |
13.72 |
|
|
10.50 |
% |
$ |
15.53 |
|
$ |
13.51 |
|
|
Net Asset Value |
|
$ |
14.59 |
|
$ |
13.47 |
|
|
8.31 |
% |
$ |
14.86 |
|
$ |
13.47 |
|
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
|
|
|
|
|
|
|
|
|
|
Sector Allocations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
||
|
Health |
|
|
25 |
% |
|
25 |
% |
|
State |
|
|
16 |
|
|
14 |
|
|
Transportation |
|
|
15 |
|
|
15 |
|
|
Corporate |
|
|
14 |
|
|
16 |
|
|
Utilities |
|
|
10 |
|
|
10 |
|
|
County/City/Special District/School District |
|
|
9 |
|
|
9 |
|
|
Education |
|
|
6 |
|
|
7 |
|
|
Housing |
|
|
3 |
|
|
3 |
|
|
Tobacco |
|
|
2 |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Allocations5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/31/11 |
|
4/30/11 |
|
||
|
AAA/Aaa |
|
|
8 |
% |
|
10 |
% |
|
AA/Aa |
|
|
47 |
|
|
45 |
|
|
A |
|
|
20 |
|
|
21 |
|
|
BBB/Baa |
|
|
10 |
|
|
10 |
|
|
BB/Ba |
|
|
2 |
|
|
2 |
|
|
B |
|
|
3 |
|
|
2 |
|
|
CCC/Caa |
|
|
— |
|
|
1 |
|
|
Not Rated6 |
|
|
10 |
|
|
9 |
|
|
|
|
|
|
|
5 |
Using the higher of S&P’s or Moody’s ratings. |
|
|
|
|
|
|
6 |
The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2011 and April 30, 2011, the market value of these securities was $8,365,669, representing 2% and $4,588,089, representing 1%, respectively, of the Fund’s long-term investments. |
|
|
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
11 |
|
|
The Funds may utilize leverage to seek to enhance the yield and NAV of their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.
To leverage, the Funds, except MUA, issue AMPS or VRDP Shares (collectively, “Preferred Shares”), which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders will benefit from the incremental net income.
To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Fund with assets received from Preferred Shares issuance earn income based on long-term interest rates. In this case, the dividends paid to holders of Preferred Shares (“Preferred Shareholders”) are significantly lower than the income earned on the Fund’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental net income.
If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Fund pays higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates.
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 redemption value of the Funds’ Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively in addition to the impact on Fund performance from leverage from Preferred Shares discussed above.
The Funds may also leverage their assets through the use of TOBs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Funds, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Fund’s NAV per share.
The use of leverage may enhance opportunities for increased income to the Funds and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Funds’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Fund’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. Each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Fund to incur losses. The use of leverage may limit each Fund’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by rating agencies that rate the Preferred Shares issued by the Funds. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.
Under the Investment Company Act of 1940, the Funds are permitted to issue Preferred Shares in an amount of up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Fund anticipates that the total economic leverage from Preferred Shares and/or TOBs will not exceed 50% (45% for MEN and MUI) of its total managed assets at the time such leverage is incurred. As of October 31, 2011, the Funds had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:
|
|
|
|
|
|
|
|
|
Percent of |
|
|
|
MUA |
|
|
7 |
% |
|
MEN |
|
|
39 |
% |
|
MHD |
|
|
36 |
% |
|
MUH |
|
|
35 |
% |
|
MUS |
|
|
40 |
% |
|
MUI |
|
|
38 |
% |
|
MVT |
|
|
41 |
% |
|
|
Derivative Financial Instruments
The Funds may invest in various derivative financial instruments, including financial futures contracts as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Derivative financial instruments 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 derivative financial instrument. The Funds’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Fund to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders or may cause a Fund to hold an investment that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
12 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
BlackRock MuniAssets Fund, Inc. (MUA) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Alabama — 0.7% |
|
|
|
|
|
|
|
|
Alabama State Docks Department, Refunding |
|
$ |
2,165 |
|
$ |
2,323,954 |
|
|
County of Jefferson Alabama, RB, Series A, 5.25%, |
|
|
895 |
|
|
884,269 |
|
|
|
|
|
|
|
|
3,208,223 |
|
|
Alaska — 1.3% |
|
|
|
|
|
|
|
|
Northern Tobacco Securitization Corp., RB, Asset-Backed, |
|
|
|
|
|
|
|
|
4.63%, 6/01/23 |
|
|
1,890 |
|
|
1,738,951 |
|
|
5.00%, 6/01/46 |
|
|
6,885 |
|
|
4,343,196 |
|
|
|
|
|
|
|
|
6,082,147 |
|
|
Arizona — 3.5% |
|
|
|
|
|
|
|
|
Maricopa County IDA Arizona, RB, Arizona Charter |
|
|
2,120 |
|
|
1,655,444 |
|
|
Phoenix IDA Arizona, Refunding RB, America West |
|
|
7,750 |
|
|
6,622,375 |
|
|
Pima County IDA, RB, Arizona Charter Schools Project, |
|
|
2,255 |
|
|
2,256,330 |
|
|
Pima County IDA, Refunding RB, Charter Schools II, |
|
|
660 |
|
|
631,930 |
|
|
Salt Verde Financial Corp., RB, Senior: |
|
|
|
|
|
|
|
|
5.00%, 12/01/32 |
|
|
1,840 |
|
|
1,693,573 |
|
|
5.00%, 12/01/37 |
|
|
1,350 |
|
|
1,222,385 |
|
|
Show Low Improvement District, Special Assessment |
|
|
575 |
|
|
576,294 |
|
|
University Medical Center Corp. Arizona, RB: |
|
|
|
|
|
|
|
|
6.25%, 7/01/29 |
|
|
820 |
|
|
858,499 |
|
|
6.50%, 7/01/39 |
|
|
500 |
|
|
519,485 |
|
|
|
|
|
|
|
|
16,036,315 |
|
|
Arkansas — 0.4% |
|
|
|
|
|
|
|
|
County of Little River Arkansas, Refunding RB, |
|
|
1,740 |
|
|
1,726,028 |
|
|
California — 3.6% |
|
|
|
|
|
|
|
|
California Statewide Communities Development Authority, |
|
|
|
|
|
|
|
|
American Baptist Homes of the West, 6.25%, |
|
|
2,175 |
|
|
2,178,893 |
|
|
Senior Living, Southern California, 7.00%, |
|
|
1,000 |
|
|
1,082,200 |
|
|
Senior Living, Southern California, 7.25%, |
|
|
3,500 |
|
|
3,771,075 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
California (concluded) |
|
|
|
|
|
|
|
|
City of Fontana California, Special Tax Bonds, Refunding |
|
$ |
2,320 |
|
$ |
2,255,226 |
|
|
City of San Buenaventura California, RB, Community |
|
|
3,665 |
|
|
3,729,394 |
|
|
City of San Jose California, RB, Convention Center |
|
|
|
|
|
|
|
|
6.50%, 5/01/36 |
|
|
900 |
|
|
968,670 |
|
|
6.50%, 5/01/42 |
|
|
2,220 |
|
|
2,375,799 |
|
|
|
|
|
|
|
|
16,361,257 |
|
|
Colorado — 1.4% |
|
|
|
|
|
|
|
|
E-470 Public Highway Authority Colorado, Refunding RB, |
|
|
3,695 |
|
|
715,241 |
|
|
Plaza Metropolitan District No. 1 Colorado, Tax Allocation |
|
|
|
|
|
|
|
|
8.00%, 12/01/25 |
|
|
4,850 |
|
|
4,890,110 |
|
|
Subordinate, 8.13%, 12/01/25 |
|
|
1,025 |
|
|
957,842 |
|
|
|
|
|
|
|
|
6,563,193 |
|
|
Connecticut — 1.5% |
|
|
|
|
|
|
|
|
Connecticut State Development Authority, RB, AFCO |
|
|
3,450 |
|
|
2,304,497 |
|
|
Mohegan Tribe of Indians of Connecticut, RB, Public |
|
|
|
|
|
|
|
|
6.25%, 1/01/31 |
|
|
4,395 |
|
|
3,494,816 |
|
|
5.25%, 1/01/33 (b) |
|
|
1,500 |
|
|
1,028,085 |
|
|
|
|
|
|
|
|
6,827,398 |
|
|
Delaware — 1.1% |
|
|
|
|
|
|
|
|
County of Sussex Delaware, RB, NRG Energy, Inc., Indian |
|
|
1,000 |
|
|
1,005,850 |
|
|
Delaware State EDA, RB, Exempt Facilities, Indian River |
|
|
4,225 |
|
|
3,874,663 |
|
|
|
|
|
|
|
|
4,880,513 |
|
|
District of Columbia — 2.1% |
|
|
|
|
|
|
|
|
District of Columbia, RB, Methodist Home District of |
|
|
|
|
|
|
|
|
7.38%, 1/01/30 |
|
|
1,665 |
|
|
1,688,210 |
|
|
7.50%, 1/01/39 |
|
|
2,725 |
|
|
2,766,584 |
|
|
District of Columbia Tobacco Settlement Financing Corp., |
|
|
1,785 |
|
|
1,854,615 |
|
|
|
|
Portfolio Abbreviations |
To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:
|
|
|
|
ACA |
American Capital Access Corp. |
|
AGC |
Assured Guaranty Corp. |
|
AGM |
Assured Guaranty Municipal Corp. |
|
AMBAC |
American Municipal Bond Assurance Corp. |
|
AMT |
Alternative Minimum Tax (subject to) |
|
ARB |
Airport Revenue Bonds |
|
BHAC |
Berkshire Hathaway Assurance Corp. |
|
CAB |
Capital Appreciation Bonds |
|
COP |
Certificates of Participation |
|
EDA |
Economic Development Authority |
|
EDC |
Economic Development Corp. |
|
ERB |
Education Revenue Bonds |
|
FGIC |
Financial Guaranty Insurance Co. |
|
FHA |
Federal Housing Administration |
|
FSA |
Financial Security Assurance, Inc. |
|
GARB |
General Airport Revenue Bonds |
|
FSA |
Financial Security Assurance, Inc. |
|
Ginnie Mae |
Government National Mortgage Association |
|
GO |
General Obligation Bonds |
|
HFA |
Housing Finance Agency |
|
HRB |
Housing Revenue Bonds |
|
HUD |
US Department of Housing and Urban Development |
|
IDA |
Industrial Development Authority |
|
IDB |
Industrial Development Board |
|
ISD |
Independent School District |
|
LRB |
Lease Revenue Bonds |
|
M/F |
Multi-Family |
|
MRB |
Mortgage Revenue Bonds |
|
NPFGC |
National Public Finance Guarantee Corp. |
|
Q-SBLF |
Qualified School Bond Loan |
|
RB |
Revenue Bonds |
|
S/F |
Single-Family |
|
SAN |
State Aid Notes |
|
Syncora |
Syncora Guarantee |
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
13 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniAssets Fund, Inc. (MUA) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
District of Columbia (concluded) |
|
|
|
|
|
|
|
|
Metropolitan Washington Airports Authority, RB, CAB, |
|
|
|
|
|
|
|
|
5.96%, 10/01/30 |
|
$ |
7,000 |
|
$ |
2,296,280 |
|
|
6.44%, 10/01/39 |
|
|
5,000 |
|
|
921,650 |
|
|
|
|
|
|
|
|
9,527,339 |
|
|
Florida — 9.9% |
|
|
|
|
|
|
|
|
County of Miami-Dade Florida, Refunding RB, Miami |
|
|
1,065 |
|
|
1,094,948 |
|
|
Greater Orlando Aviation Authority Florida, RB, Special |
|
|
1,180 |
|
|
1,121,484 |
|
|
Harbor Bay Community Development District Florida, |
|
|
455 |
|
|
444,640 |
|
|
Hillsborough County IDA, RB, AMT, National Gypsum Co.: |
|
|
|
|
|
|
|
|
Series A, 7.13%, 4/01/30 |
|
|
4,500 |
|
|
4,010,400 |
|
|
Series B, 7.13%, 4/01/30 |
|
|
3,100 |
|
|
2,762,720 |
|
|
Jacksonville Economic Development Commission, RB, |
|
|
2,200 |
|
|
1,943,876 |
|
|
Jacksonville Economic Development Commission, |
|
|
1,365 |
|
|
1,432,513 |
|
|
Lakewood Ranch Stewardship District, Special |
|
|
1,485 |
|
|
1,500,711 |
|
|
Mid-Bay Bridge Authority, RB, Series A, 7.25%, 10/01/40 |
|
|
4,550 |
|
|
4,762,394 |
|
|
Midtown Miami Community Development District, |
|
|
|
|
|
|
|
|
6.00%, 5/01/24 |
|
|
1,305 |
|
|
1,306,201 |
|
|
6.25%, 5/01/37 |
|
|
4,605 |
|
|
4,541,497 |
|
|
Palm Beach County Health Facilities Authority, RB, Acts |
|
|
3,500 |
|
|
3,378,655 |
|
|
Santa Rosa Bay Bridge Authority, RB, 6.25%, |
|
|
5,180 |
|
|
1,812,948 |
|
|
Sarasota County Health Facilities Authority, Refunding |
|
|
|
|
|
|
|
|
5.50%, 1/01/27 |
|
|
955 |
|
|
940,455 |
|
|
Sarasota County Public Hospital District, RB, Sarasota |
|
|
615 |
|
|
626,248 |
|
|
Sumter Landing Community Development District |
|
|
3,885 |
|
|
3,137,565 |
|
|
Tampa Palms Open Space & Transportation Community |
|
|
1,715 |
|
|
1,715,497 |
|
|
Tolomato Community Development District, Special |
|
|
4,525 |
|
|
2,809,527 |
|
|
Village Community Development District No. 9, Special |
|
|
|
|
|
|
|
|
6.75%, 5/01/31 |
|
|
2,000 |
|
|
2,091,220 |
|
|
7.00%, 5/01/41 |
|
|
3,230 |
|
|
3,402,999 |
|
|
|
|
|
|
|
|
44,836,498 |
|
|
Georgia — 2.5% |
|
|
|
|
|
|
|
|
City of Atlanta Georgia, Tax Allocation Bonds, Princeton |
|
|
1,035 |
|
|
963,078 |
|
|
Clayton County Development Authority, RB, Delta Air |
|
|
3,365 |
|
|
3,890,378 |
|
|
County of Clayton Georgia, Tax Allocation Bonds, |
|
|
2,765 |
|
|
2,684,096 |
|
|
DeKalb County Hospital Authority Georgia, RB, DeKalb |
|
|
2,005 |
|
|
2,032,769 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Georgia (concluded) |
|
|
|
|
|
|
|
|
Gainesville & Hall County Development Authority, |
|
|
|
|
|
|
|
|
6.38%, 11/15/29 |
|
$ |
700 |
|
$ |
738,416 |
|
|
6.63%, 11/15/39 |
|
|
880 |
|
|
922,636 |
|
|
|
|
|
|
|
|
11,231,373 |
|
|
Guam — 0.9% |
|
|
|
|
|
|
|
|
Guam Government Waterworks Authority, Refunding RB, |
|
|
1,265 |
|
|
1,270,237 |
|
|
Territory of Guam, GO, Series A: |
|
|
|
|
|
|
|
|
6.00%, 11/15/19 |
|
|
615 |
|
|
625,953 |
|
|
6.75%, 11/15/29 |
|
|
1,075 |
|
|
1,108,250 |
|
|
7.00%, 11/15/39 |
|
|
1,115 |
|
|
1,155,363 |
|
|
|
|
|
|
|
|
4,159,803 |
|
|
Illinois — 5.4% |
|
|
|
|
|
|
|
|
City of Chicago Illinois, Refunding RB, American |
|
|
7,000 |
|
|
3,920,000 |
|
|
Illinois Finance Authority, RB: |
|
|
|
|
|
|
|
|
Roosevelt University Project, 6.50%, 4/01/44 |
|
|
4,170 |
|
|
4,344,890 |
|
|
Rush University Medical Center Obligation Group, |
|
|
2,000 |
|
|
2,246,740 |
|
|
Rush University Medical Center Obligation Group, |
|
|
1,170 |
|
|
1,314,343 |
|
|
Illinois Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
CAB, Clare Water Tower, Series B, 8.00%, 5/15/50 (a) |
|
|
1,500 |
|
|
4,455 |
|
|
Clare Water Tower, Series A-7, 6.13%, 5/15/41 |
|
|
3,500 |
|
|
997,500 |
|
|
Friendship Village of Schaumburg, 7.25%, 2/15/45 |
|
|
4,000 |
|
|
3,999,360 |
|
|
Primary Health Care Centers Program, 6.60%, |
|
|
1,175 |
|
|
1,048,593 |
|
|
Metropolitan Pier & Exposition Authority, Refunding RB, |
|
|
9,860 |
|
|
1,186,651 |
|
|
Railsplitter Tobacco Settlement Authority, RB: |
|
|
|
|
|
|
|
|
5.50%, 6/01/23 |
|
|
1,400 |
|
|
1,477,812 |
|
|
6.00%, 6/01/28 |
|
|
710 |
|
|
738,272 |
|
|
Village of Lincolnshire Illinois, Special Tax Bonds, |
|
|
1,825 |
|
|
1,611,566 |
|
|
Village of Wheeling Illinois, Tax Allocation Bonds, North |
|
|
1,465 |
|
|
1,366,347 |
|
|
|
|
|
|
|
|
24,256,529 |
|
|
Indiana — 0.5% |
|
|
|
|
|
|
|
|
Vigo County Hospital Authority Indiana, RB, Union |
|
|
|
|
|
|
|
|
5.70%, 9/01/37 |
|
|
1,055 |
|
|
953,330 |
|
|
5.75%, 9/01/42 |
|
|
1,310 |
|
|
1,182,943 |
|
|
|
|
|
|
|
|
2,136,273 |
|
|
Kentucky — 1.1% |
|
|
|
|
|
|
|
|
Kentucky Economic Development Finance Authority, RB, |
|
|
|
|
|
|
|
|
Series A, 6.38%, 6/01/40 |
|
|
1,580 |
|
|
1,650,421 |
|
|
Series A, 6.50%, 3/01/45 |
|
|
2,000 |
|
|
2,103,140 |
|
|
Kentucky Economic Development Finance Authority, |
|
|
1,135 |
|
|
1,185,587 |
|
|
|
|
|
|
|
|
4,939,148 |
|
|
Louisiana — 1.6% |
|
|
|
|
|
|
|
|
Louisiana Local Government Environmental Facilities & |
|
|
5,000 |
|
|
5,217,550 |
|
|
Louisiana Public Facilities Authority, RB, Belle Chasse |
|
|
1,855 |
|
|
1,949,846 |
|
|
|
|
|
|
|
|
7,167,396 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
14 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniAssets Fund, Inc. (MUA) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Maine — 0.7% |
|
|
|
|
|
|
|
|
Maine Health & Higher Educational Facilities Authority, |
|
$ |
2,955 |
|
$ |
3,041,227 |
|
|
Maryland — 2.6% |
|
|
|
|
|
|
|
|
Maryland EDC, RB, Transportation Facilities Project, |
|
|
3,615 |
|
|
3,576,609 |
|
|
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., |
|
|
4,785 |
|
|
4,803,948 |
|
|
Maryland Health & Higher Educational Facilities Authority, |
|
|
1,000 |
|
|
437,500 |
|
|
Maryland Health & Higher Educational Facilities Authority, |
|
|
3,110 |
|
|
2,801,550 |
|
|
|
|
|
|
|
|
11,619,607 |
|
|
Massachusetts — 1.1% |
|
|
|
|
|
|
|
|
Massachusetts Development Finance Agency, RB: |
|
|
|
|
|
|
|
|
Eastern Nazarene College, 5.63%, 4/01/19 |
|
|
40 |
|
|
39,652 |
|
|
Eastern Nazarene College, 5.63%, 4/01/29 |
|
|
80 |
|
|
71,762 |
|
|
Foxborough Regional Charter School, Series A, 7.00%, |
|
|
1,025 |
|
|
1,090,528 |
|
|
Tufts Medical Center, Series I, 6.75%, 1/01/36 |
|
|
1,490 |
|
|
1,579,609 |
|
|
Massachusetts Health & Educational Facilities Authority, |
|
|
2,000 |
|
|
1,985,160 |
|
|
|
|
|
|
|
|
4,766,711 |
|
|
Michigan — 2.8% |
|
|
|
|
|
|
|
|
Advanced Technology Academy, RB, 6.00%, 11/01/37 |
|
|
1,525 |
|
|
1,311,241 |
|
|
County of Wayne Michigan, GO, Building Improvement, |
|
|
900 |
|
|
962,874 |
|
|
Monroe County Hospital Finance Authority, Refunding |
|
|
3,000 |
|
|
2,727,570 |
|
|
Royal Oak Hospital Finance Authority Michigan, |
|
|
6,310 |
|
|
7,484,038 |
|
|
|
|
|
|
|
|
12,485,723 |
|
|
Minnesota — 0.4% |
|
|
|
|
|
|
|
|
City of Minneapolis Minnesota, Refunding RB, Fairview |
|
|
1,785 |
|
|
1,976,191 |
|
|
Missouri — 0.5% |
|
|
|
|
|
|
|
|
Kirkwood IDA Missouri, RB, Aberdeen Heights, Series A, |
|
|
2,315 |
|
|
2,403,734 |
|
|
Nevada — 0.2% |
|
|
|
|
|
|
|
|
County of Clark Nevada, Special Assessment Bonds, |
|
|
960 |
|
|
982,925 |
|
|
New Hampshire — 0.4% |
|
|
|
|
|
|
|
|
New Hampshire Health & Education Facilities Authority, |
|
|
2,000 |
|
|
1,767,460 |
|
|
New Jersey — 7.4% |
|
|
|
|
|
|
|
|
New Jersey EDA, RB: |
|
|
|
|
|
|
|
|
Cigarette Tax, 5.75%, 6/15/29 |
|
|
3,180 |
|
|
3,097,384 |
|
|
Continental Airlines Inc. Project, AMT, 6.63%, |
|
|
4,050 |
|
|
4,089,487 |
|
|
Continental Airlines Inc. Project, AMT, 6.25%, |
|
|
2,000 |
|
|
1,959,040 |
|
|
Continental Airlines Inc. Project, AMT, 6.40%, |
|
|
2,000 |
|
|
1,952,800 |
|
|
Continental Airlines Inc. Project, AMT, 6.25%, |
|
|
4,330 |
|
|
4,093,885 |
|
|
Continental Airlines Inc. Project, AMT, 9.00%, |
|
|
1,250 |
|
|
1,282,975 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
New Jersey (concluded) |
|
|
|
|
|
|
|
|
New Jersey EDA, Refunding RB, Newark Airport Marriott |
|
$ |
4,000 |
|
$ |
4,016,560 |
|
|
New Jersey Educational Facilities Authority, Refunding RB, |
|
|
|
|
|
|
|
|
7.13%, 12/01/23 |
|
|
670 |
|
|
798,278 |
|
|
7.50%, 12/01/32 |
|
|
3,575 |
|
|
4,155,187 |
|
|
New Jersey Health Care Facilities Financing Authority, RB, |
|
|
3,870 |
|
|
39 |
|
|
New Jersey Health Care Facilities Financing Authority, |
|
|
|
|
|
|
|
|
Barnabas Health, Series A, 5.63%, 7/01/37 (f) |
|
|
2,650 |
|
|
2,630,204 |
|
|
St. Joseph’s Healthcare System, 6.63%, 7/01/38 |
|
|
4,090 |
|
|
4,081,902 |
|
|
New Jersey Transportation Trust Fund Authority, RB, CAB, |
|
|
6,210 |
|
|
1,439,851 |
|
|
|
|
|
|
|
|
33,597,592 |
|
|
New York — 6.8% |
|
|
|
|
|
|
|
|
Chautauqua County Industrial Development Agency, RB, |
|
|
3,695 |
|
|
3,644,785 |
|
|
Dutchess County Industrial Development Agency New York, |
|
|
1,000 |
|
|
989,350 |
|
|
Dutchess County Industrial Development Agency New York, |
|
|
1,400 |
|
|
1,385,090 |
|
|
Hudson New York Yards Infrastructure Corp., RB, Series A, |
|
|
4,515 |
|
|
4,780,978 |
|
|
Metropolitan Transportation Authority, RB, Series 2008C, |
|
|
5,685 |
|
|
6,655,714 |
|
|
New York City Industrial Development Agency, RB: |
|
|
|
|
|
|
|
|
American Airlines Inc., JFK International Airport, AMT, |
|
|
1,765 |
|
|
1,632,678 |
|
|
British Airways Plc Project, 7.63%, 12/01/32 |
|
|
4,130 |
|
|
4,146,437 |
|
|
Series C, 6.80%, 6/01/28 |
|
|
860 |
|
|
886,987 |
|
|
Special Needs Facilities Pooled Program, Series C-1, |
|
|
610 |
|
|
579,872 |
|
|
Special Needs Facilities Pooled Program, Series C-1, |
|
|
1,100 |
|
|
1,010,383 |
|
|
New York Liberty Development Corp., Refunding RB, |
|
|
1,270 |
|
|
1,317,841 |
|
|
Port Authority of New York & New Jersey, RB, JFK |
|
|
1,340 |
|
|
1,387,329 |
|
|
Yonkers Industrial Development Agency New York, |
|
|
2,090 |
|
|
2,211,011 |
|
|
|
|
|
|
|
|
30,628,455 |
|
|
North Carolina — 1.6% |
|
|
|
|
|
|
|
|
North Carolina Medical Care Commission, RB: |
|
|
|
|
|
|
|
|
First Mortgage, Deerfield, Series A, 6.13%, 11/01/38 |
|
|
4,565 |
|
|
4,615,398 |
|
|
First Mortgage, Whitestone, Series A, 7.75%, 3/01/31 |
|
|
1,000 |
|
|
1,036,080 |
|
|
First Mortgage, Whitestone, Series A, 7.75%, 3/01/41 |
|
|
1,420 |
|
|
1,456,210 |
|
|
|
|
|
|
|
|
7,107,688 |
|
|
Ohio — 1.6% |
|
|
|
|
|
|
|
|
Buckeye Tobacco Settlement Financing Authority, RB, |
|
|
3,350 |
|
|
2,572,398 |
|
|
State of Ohio, RB, Ford Motor Co. Project, AMT, 5.75%, |
|
|
4,880 |
|
|
4,567,485 |
|
|
|
|
|
|
|
|
7,139,883 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
15 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniAssets Fund, Inc. (MUA) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Pennsylvania — 7.2% |
|
|
|
|
|
|
|
|
Allegheny County Hospital Development Authority, |
|
$ |
5,345 |
|
$ |
4,385,412 |
|
|
Bucks County IDA, RB, Ann’s Choice, Inc. Facility, Series A: |
|
|
|
|
|
|
|
|
6.13%, 1/01/25 |
|
|
1,360 |
|
|
1,311,693 |
|
|
6.25%, 1/01/35 |
|
|
1,550 |
|
|
1,420,792 |
|
|
Cumberland County Municipal Authority, RB, Diakon |
|
|
6,165 |
|
|
6,340,764 |
|
|
Lancaster County Hospital Authority, RB, Brethren Village |
|
|
|
|
|
|
|
|
6.25%, 7/01/26 |
|
|
1,160 |
|
|
1,165,081 |
|
|
6.50%, 7/01/40 |
|
|
1,665 |
|
|
1,665,583 |
|
|
Montgomery County IDA Pennsylvania, MRB, Whitemarsh |
|
|
2,330 |
|
|
2,033,601 |
|
|
Pennsylvania Economic Development Financing Authority, |
|
|
3,250 |
|
|
2,763,767 |
|
|
Philadelphia Authority for Industrial Development, RB, AMT: |
|
|
|
|
|
|
|
|
Commercial Development, 7.75%, 12/01/17 |
|
|
8,000 |
|
|
8,006,720 |
|
|
Subordinate, Air Cargo, Series A, 7.50%, 1/01/25 |
|
|
3,870 |
|
|
3,693,953 |
|
|
|
|
|
|
|
|
32,787,366 |
|
|
Puerto Rico — 0.8% |
|
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, CAB, First |
|
|
4,445 |
|
|
828,459 |
|
|
Puerto Rico Sales Tax Financing Corp., Refunding RB, |
|
|
2,650 |
|
|
2,984,086 |
|
|
|
|
|
|
|
|
3,812,545 |
|
|
Rhode Island — 0.7% |
|
|
|
|
|
|
|
|
Central Falls Detention Facility Corp., Refunding RB, |
|
|
4,245 |
|
|
3,314,623 |
|
|
Tennessee — 0.4% |
|
|
|
|
|
|
|
|
Knox County Health Educational & Housing Facilities |
|
|
5,820 |
|
|
1,140,778 |
|
|
Shelby County Health Educational & Housing Facilities |
|
|
600 |
|
|
513,864 |
|
|
|
|
|
|
|
|
1,654,642 |
|
|
Texas — 12.6% |
|
|
|
|
|
|
|
|
Bexar County Health Facilities Development Corp., RB, |
|
|
5,040 |
|
|
5,137,524 |
|
|
Brazos River Authority, Refunding RB, Texas Utility Co., |
|
|
5,080 |
|
|
1,320,648 |
|
|
Central Texas Regional Mobility Authority, RB: |
|
|
|
|
|
|
|
|
CAB, 6.78%, 1/01/28 (a) |
|
|
1,000 |
|
|
369,160 |
|
|
CAB, 6.82%, 1/01/29 (a) |
|
|
2,000 |
|
|
682,740 |
|
|
CAB, 6.85%, 1/01/30 (a) |
|
|
1,170 |
|
|
370,562 |
|
|
CAB, 6.89%, 1/01/31 (a) |
|
|
2,000 |
|
|
590,200 |
|
|
CAB, 6.87%, 1/01/32 (a) |
|
|
3,500 |
|
|
967,225 |
|
|
CAB, 6.84%, 1/01/33 (a) |
|
|
3,690 |
|
|
954,788 |
|
|
CAB, 6.86%, 1/01/34 (a) |
|
|
4,000 |
|
|
968,880 |
|
|
Senior Lien, 5.75%, 1/01/25 |
|
|
675 |
|
|
698,942 |
|
|
Senior Lien, 6.25%, 1/01/46 |
|
|
2,210 |
|
|
2,247,526 |
|
|
City of Houston Texas, RB, Special Facilities, Continental |
|
|
4,550 |
|
|
4,467,372 |
|
|
Danbury Higher Education Authority Inc., RB, A.W. Brown |
|
|
1,000 |
|
|
1,154,020 |
|
|
Harris County Health Facilities Development Corp., |
|
|
|
|
|
|
|
|
7.13%, 12/01/31 |
|
|
1,500 |
|
|
1,685,235 |
|
|
7.25%, 12/01/35 |
|
|
1,110 |
|
|
1,245,420 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Texas (concluded) |
|
|
|
|
|
|
|
|
Houston Higher Education Finance Corp., RB, Cosmos |
|
$ |
595 |
|
$ |
637,287 |
|
|
La Vernia Higher Education Finance Corp., RB, KIPP Inc., |
|
|
860 |
|
|
911,531 |
|
|
Love Field Airport Modernization Corp., RB, Southwest |
|
|
2,975 |
|
|
2,822,472 |
|
|
Matagorda County Navigation District No. 1 Texas, |
|
|
2,090 |
|
|
2,246,311 |
|
|
North Texas Tollway Authority, RB: |
|
|
|
|
|
|
|
|
CAB, Special Projects System, Series B, 5.88%, |
|
|
2,110 |
|
|
416,345 |
|
|
Toll, Second Tier, Series F, 6.13%, 1/01/31 |
|
|
4,425 |
|
|
4,635,187 |
|
|
Sabine River Authority Texas, Refunding RB, TXU |
|
|
3,230 |
|
|
3,228,902 |
|
|
Tarrant County Cultural Education Facilities Finance Corp., |
|
|
|
|
|
|
|
|
CC Young Memorial Home, 8.00%, 2/15/38 |
|
|
1,745 |
|
|
1,772,065 |
|
|
Senior Living Center Project, 8.25%, 11/15/44 |
|
|
4,200 |
|
|
4,281,018 |
|
|
Texas State Private Activity Bond Surface Transportation |
|
|
|
|
|
|
|
|
LBJ Infrastructure Group LLC, LBJ Freeway Managed |
|
|
4,455 |
|
|
4,789,526 |
|
|
NTE Mobility Partners LLC, North Tarrant Express |
|
|
3,500 |
|
|
3,734,605 |
|
|
Texas Public Finance Authority, RB, Charter School |
|
|
1,000 |
|
|
931,370 |
|
|
Texas State Public Finance Authority, Refunding ERB, |
|
|
|
|
|
|
|
|
5.00%, 2/15/28 |
|
|
2,825 |
|
|
2,806,129 |
|
|
5.00%, 2/15/36 |
|
|
850 |
|
|
805,324 |
|
|
|
|
|
|
|
|
56,878,314 |
|
|
US Virgin Islands — 1.1% |
|
|
|
|
|
|
|
|
United States Virgin Islands, Refunding RB, Senior |
|
|
5,100 |
|
|
4,869,123 |
|
|
Utah — 0.4% |
|
|
|
|
|
|
|
|
County of Carbon Utah, Refunding RB, Laidlaw |
|
|
2,000 |
|
|
2,024,980 |
|
|
Vermont — 0.3% |
|
|
|
|
|
|
|
|
Vermont EDA, Refunding MRB, Wake Robin Corp. |
|
|
1,600 |
|
|
1,485,008 |
|
|
Virginia — 1.4% |
|
|
|
|
|
|
|
|
Dulles Town Center Community Development Authority, |
|
|
3,635 |
|
|
3,635,291 |
|
|
Lexington IDA, Refunding MRB, Kendal at Lexington, |
|
|
40 |
|
|
36,116 |
|
|
Mosaic District Community Development Authority, RB, |
|
|
|
|
|
|
|
|
6.63%, 3/01/26 |
|
|
1,485 |
|
|
1,545,054 |
|
|
6.88%, 3/01/36 |
|
|
1,300 |
|
|
1,361,334 |
|
|
|
|
|
|
|
|
6,577,795 |
|
|
Washington — 0.3% |
|
|
|
|
|
|
|
|
King County, Washington Public Hospital District No. 4, |
|
|
1,455 |
|
|
1,445,935 |
|
|
Wisconsin — 2.1% |
|
|
|
|
|
|
|
|
Wisconsin Health & Educational Facilities Authority, RB: |
|
|
|
|
|
|
|
|
New Castle Place Project, Series A, 7.00%, 12/01/31 |
|
|
3,175 |
|
|
2,520,760 |
|
|
Wheaton Franciscan Healthcare, 5.25%, 8/15/34 |
|
|
6,235 |
|
|
5,693,677 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
16 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniAssets Fund, Inc. (MUA) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Wisconsin (concluded) |
|
|
|
|
|
|
|
|
Wisconsin Health & Educational Facilities
Authority, |
|
|
|
|
|
|
|
|
7.25%, 9/15/29 |
|
$ |
425 |
|
$ |
447,104 |
|
|
7.63%, 9/15/39 |
|
|
855 |
|
|
906,001 |
|
|
|
|
|
|
|
|
9,567,542 |
|
|
Total Municipal Bonds — 90.9% |
|
|
|
|
|
411,874,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
Bonds Transferred to |
|
|
|
|
|
|
|
|
District of Columbia — 1.7% |
|
|
|
|
|
|
|
|
District of Columbia Water & Sewer
Authority, RB, Series A, |
|
|
6,681 |
|
|
7,877,347 |
|
|
Florida — 3.3% |
|
|
|
|
|
|
|
|
County of Miami-Dade Florida, RB, Miami
International |
|
|
15,000 |
|
|
15,042,450 |
|
|
Illinois — 1.7% |
|
|
|
|
|
|
|
|
Illinois Finance Authority, RB, Carle
Foundation, Series A |
|
|
7,180 |
|
|
7,520,188 |
|
|
New York — 4.9% |
|
|
|
|
|
|
|
|
New York City Municipal Water & Sewer
Finance |
|
|
|
|
|
|
|
|
Second General Resolution, Series EE,
5.50%, |
|
|
7,605 |
|
|
8,463,224 |
|
|
Second General Resolution, Series HH, 5.00%, |
|
|
8,609 |
|
|
9,319,134 |
|
|
New York State Dormitory Authority, ERB,
Series F, 5.00%, |
|
|
4,004 |
|
|
4,144,736 |
|
|
|
|
|
|
|
|
21,927,094 |
|
|
Washington — 1.9% |
|
|
|
|
|
|
|
|
Bellingham, Washington Water & Sewer,
RB, 5.00%, |
|
|
7,966 |
|
|
8,484,575 |
|
|
Total Municipal Bonds Transferred to |
|
|
|
|
|
60,851,654 |
|
|
Total Long-Term Investments |
|
|
|
|
|
472,726,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities |
|
Shares |
|
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.01% (h)(i) |
|
|
3,791,874 |
|
|
3,791,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Par |
|
|
|
|
|
|
Michigan Finance Authority, RB, SAN,
Detroit Schools, |
|
$ |
3,400 |
|
|
3,400,000 |
|
|
Total Short-Term Securities |
|
|
|
|
|
7,191,874 |
|
|
Total Investments (Cost — $481,902,213*) — 106.0% |
|
|
|
|
|
479,918,030 |
|
|
Other Assets Less Liabilities — 1.0% |
|
|
|
|
|
4,940,468 |
|
|
Liability for TOB Trust Certificates, Including |
|
|
|
|
|
(31,902,129 |
) |
|
Net Assets Applicable to Common Shares — 100.0% |
|
|
|
|
$ |
452,956,369 |
|
|
|
|
|
* |
The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows: |
|
|
|
|
|
|
|
Aggregate cost |
|
$ |
449,252,893 |
|
|
Gross unrealized appreciation |
|
$ |
25,688,505 |
|
|
Gross unrealized depreciation |
|
|
(26,914,177 |
) |
|
Net unrealized depreciation |
|
$ |
(1,225,672 |
) |
|
|
|
|
(a) |
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
|
|
|
|
(b) |
Security exempt from registration pursuant to Rule 144a under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
|
|
|
|
(c) |
Issuer filed for bankruptcy and/or is in default of interest payments. |
|
|
|
|
(d) |
Non-income producing security. |
|
|
|
|
(e) |
Variable rate security. Rate shown is as of report date. |
|
|
|
|
(f) |
When-issued security. Unsettled when-issued transactions were as follows: |
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Value |
|
Unrealized |
|
||
|
JPMorgan Securities |
|
$ |
2,630,204 |
|
$ |
24,566 |
|
|
|
|
|
(g) |
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
(h) |
Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate |
|
Shares |
|
Net |
|
Shares |
|
Income |
|
||||
|
FFI Institutional Tax-Exempt Fund |
|
|
1,560,240 |
|
|
2,231,634 |
|
|
3,791,874 |
|
$ |
789 |
|
|
|
|
|
(i) |
Represents the current yield as of report date. |
|
|
|
|
• |
Financial futures contracts sold as of October 31, 2011 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts |
|
|
Issue |
|
|
Exchange |
|
|
Expiration |
|
Notional
|
|
Unrealized
|
|
||
|
57 |
|
|
10-Year
US |
|
|
Chicago
Board |
|
|
December 2011 |
|
$ |
7,356,563 |
|
$ |
58,220 |
|
|
|
|
|
|
• |
Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
|
|
|
|
|
|
|
• |
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
|
• |
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
|
|
|
|
|
|
• |
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
|
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
17 |
|
|
|
|
|
|
|
Schedule of Investments (concluded) |
BlackRock MuniAssets Fund, Inc. (MUA) |
The following tables summarize the inputs used as of October 31, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term |
|
|
— |
|
$ |
472,726,156 |
|
|
— |
|
$ |
472,726,156 |
|
|
Short-Term |
|
$ |
3,791,874 |
|
|
3,400,000 |
|
|
— |
|
|
7,191,874 |
|
|
Total |
|
$ |
3,791,874 |
|
$ |
476,126,156 |
|
|
— |
|
$ |
479,918,030 |
|
1 See above Schedule of Investments for values in each state or political subdivision.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Derivative Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate |
|
$ |
58,220 |
|
|
— |
|
|
— |
|
$ |
58,220 |
|
|
|
|
|
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
18 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments October 31, 2011 (Unaudited) |
BlackRock MuniEnhanced Fund, Inc. (MEN) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Alabama — 1.4% |
|
|
|
|
|
|
|
|
County of Jefferson Alabama, RB, Series A: |
|
|
|
|
|
|
|
|
5.50%, 1/01/22 |
|
$ |
2,750 |
|
$ |
2,606,148 |
|
|
4.75%, 1/01/25 |
|
|
2,200 |
|
|
1,939,300 |
|
|
|
|
|
|
|
|
4,545,448 |
|
|
Alaska — 0.5% |
|
|
|
|
|
|
|
|
Alaska Housing Finance Corp., RB, General Housing, |
|
|
400 |
|
|
408,616 |
|
|
Borough of Matanuska-Susitna Alaska, RB, Goose Creek |
|
|
1,200 |
|
|
1,383,492 |
|
|
|
|
|
|
|
|
1,792,108 |
|
|
Arizona — 1.2% |
|
|
|
|
|
|
|
|
State of Arizona, COP, Department of Administration, |
|
|
|
|
|
|
|
|
5.00%, 10/01/27 |
|
|
3,250 |
|
|
3,477,663 |
|
|
5.00%, 10/01/29 |
|
|
400 |
|
|
415,612 |
|
|
|
|
|
|
|
|
3,893,275 |
|
|
California — 22.4% |
|
|
|
|
|
|
|
|
Alameda Corridor Transportation Authority, Refunding RB, |
|
|
|
|
|
|
|
|
5.45%, 10/01/24 |
|
|
10,185 |
|
|
9,140,223 |
|
|
5.45%, 10/01/25 |
|
|
6,000 |
|
|
5,341,560 |
|
|
Anaheim Public Financing Authority California, RB, |
|
|
5,000 |
|
|
5,776,300 |
|
|
Cabrillo Community College District, GO, CAB, Election |
|
|
2,400 |
|
|
470,976 |
|
|
California Health Facilities Financing Authority, |
|
|
|
|
|
|
|
|
St. Joseph Health System, Series A, 5.75%, 7/01/39 |
|
|
550 |
|
|
572,765 |
|
|
Sutter Health, Series B, 5.88%, 8/15/31 |
|
|
1,200 |
|
|
1,295,976 |
|
|
California State University, RB, Systemwide, Series A |
|
|
1,405 |
|
|
1,420,975 |
|
|
California State University, Refunding RB, Systemwide, |
|
|
2,000 |
|
|
2,043,360 |
|
|
Chino Valley Unified School District, GO, Election of 2002, |
|
|
850 |
|
|
885,700 |
|
|
City of Redding California, COP, Refunding, Series A |
|
|
1,420 |
|
|
1,484,695 |
|
|
City of San Jose California, RB, Series A-1, AMT, 5.75%, |
|
|
850 |
|
|
887,349 |
|
|
Los Angeles Community College District California, GO, |
|
|
1,300 |
|
|
1,364,064 |
|
|
Los Angeles Department of Water & Power, RB, Series C |
|
|
5,160 |
|
|
5,292,973 |
|
|
Metropolitan Water District of Southern California, RB, |
|
|
|
|
|
|
|
|
5.00%, 10/01/29 |
|
|
2,570 |
|
|
2,653,345 |
|
|
5.00%, 10/01/36 |
|
|
1,480 |
|
|
1,520,493 |
|
|
Norco Redevelopment Agency California, Tax Allocation |
|
|
3,800 |
|
|
3,679,046 |
|
|
Orange County Sanitation District, COP, Series B (AGM): |
|
|
|
|
|
|
|
|
5.00%, 2/01/30 |
|
|
1,500 |
|
|
1,585,590 |
|
|
5.00%, 2/01/31 |
|
|
900 |
|
|
947,844 |
|
|
Poway Redevelopment Agency California, Tax Allocation |
|
|
1,750 |
|
|
1,577,485 |
|
|
Poway Unified School District, GO, CAB, School Facilities |
|
|
3,750 |
|
|
817,537 |
|
|
Sacramento Unified School District California, GO, |
|
|
1,075 |
|
|
1,104,616 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
California (concluded) |
|
|
|
|
|
|
|
|
San Diego Unified School District California, GO, CAB, |
|
$ |
1,600 |
|
$ |
318,960 |
|
|
San Joaquin County Transportation Authority, RB, |
|
|
2,175 |
|
|
2,483,611 |
|
|
San Marcos Unified School District, GO, Election of |
|
|
|
|
|
|
|
|
5.00%, 8/01/34 |
|
|
700 |
|
|
728,455 |
|
|
5.00%, 8/01/38 |
|
|
600 |
|
|
621,984 |
|
|
San Mateo County Community College District, GO, |
|
|
12,740 |
|
|
4,637,105 |
|
|
State of California, GO: |
|
|
|
|
|
|
|
|
5.13%, 6/01/27 |
|
|
20 |
|
|
20,026 |
|
|
5.13%, 6/01/31 |
|
|
60 |
|
|
60,031 |
|
|
Stockton Public Financing Authority California, RB, |
|
|
6,145 |
|
|
6,211,489 |
|
|
Ventura County Community College District, GO, |
|
|
2,325 |
|
|
2,414,931 |
|
|
Walnut Valley Unified School District, GO, CAB, |
|
|
5,500 |
|
|
1,228,205 |
|
|
West Basin Municipal Water District California, COP, |
|
|
5,035 |
|
|
5,227,287 |
|
|
|
|
|
|
|
|
73,814,956 |
|
|
Colorado — 1.9% |
|
|
|
|
|
|
|
|
Colorado Health Facilities Authority, RB, Covenant |
|
|
|
|
|
|
|
|
5.50%, 12/01/27 |
|
|
1,200 |
|
|
1,125,636 |
|
|
5.50%, 12/01/33 |
|
|
675 |
|
|
625,408 |
|
|
Colorado Health Facilities Authority, Refunding RB, |
|
|
2,130 |
|
|
2,156,241 |
|
|
Colorado Housing & Finance Authority, Refunding RB, |
|
|
295 |
|
|
301,732 |
|
|
Regional Transportation District, COP, Series A, 5.38%, |
|
|
2,000 |
|
|
2,120,460 |
|
|
|
|
|
|
|
|
6,329,477 |
|
|
Connecticut — 0.2% |
|
|
|
|
|
|
|
|
Connecticut State Health & Educational Facilities |
|
|
675 |
|
|
678,551 |
|
|
District of Columbia — 1.6% |
|
|
|
|
|
|
|
|
District of Columbia, RB, Series B-1 (NPFGC), 5.00%, |
|
|
5,530 |
|
|
5,356,800 |
|
|
Florida — 14.9% |
|
|
|
|
|
|
|
|
Broward County School Board Florida, COP, Series A |
|
|
1,600 |
|
|
1,651,600 |
|
|
Collier County School Board, COP (AGM), 5.00%, |
|
|
3,000 |
|
|
3,215,910 |
|
|
County of Broward Florida, RB, Series A, 5.25%, |
|
|
850 |
|
|
912,560 |
|
|
County of Duval Florida, COP, Master Lease Program |
|
|
5,000 |
|
|
5,113,500 |
|
|
County of Lee Florida, Refunding RB, Series A, AMT: |
|
|
|
|
|
|
|
|
5.63%, 10/01/26 |
|
|
960 |
|
|
998,381 |
|
|
5.38%, 10/01/32 |
|
|
3,160 |
|
|
3,142,178 |
|
|
County of Miami-Dade Florida, GO, Building Better |
|
|
1,400 |
|
|
1,518,174 |
|
|
County of Miami-Dade Florida, RB, Water & Sewer |
|
|
4,625 |
|
|
4,806,901 |
|
|
County of Miami-Dade Florida, Refunding RB, Miami |
|
|
9,900 |
|
|
9,490,833 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
19 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniEnhanced Fund, Inc. (MEN) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Florida (concluded) |
|
|
|
|
|
|
|
|
Florida Ports Financing Commission, Refunding RB, |
|
|
|
|
|
|
|
|
5.13%, 6/01/27 |
|
$ |
2,000 |
|
$ |
2,115,520 |
|
|
5.38%, 10/01/29 |
|
|
1,050 |
|
|
1,110,742 |
|
|
Highlands County Health Facilities Authority, RB, Adventist |
|
|
1,450 |
|
|
1,565,884 |
|
|
Hillsborough County Aviation Authority Florida, RB, |
|
|
4,050 |
|
|
4,147,200 |
|
|
Miami-Dade County School Board, COP, Refunding, |
|
|
1,000 |
|
|
1,027,910 |
|
|
Orange County School Board, COP, Series A: |
|
|
|
|
|
|
|
|
(AGC), 5.50%, 8/01/34 |
|
|
3,550 |
|
|
3,763,177 |
|
|
(NPFGC), 5.00%, 8/01/31 |
|
|
2,000 |
|
|
2,030,240 |
|
|
Sarasota County Public Hospital District, RB, Sarasota |
|
|
275 |
|
|
280,030 |
|
|
South Florida Water Management District, COP (AGC), |
|
|
2,000 |
|
|
2,131,860 |
|
|
|
|
|
|
|
|
49,022,600 |
|
|
Georgia — 3.6% |
|
|
|
|
|
|
|
|
Burke County Development Authority, RB, Oglethorpe |
|
|
1,150 |
|
|
1,190,457 |
|
|
Gwinnett County Hospital Authority, Refunding RB, |
|
|
825 |
|
|
860,005 |
|
|
Municipal Electric Authority of Georgia, Refunding RB, |
|
|
7,475 |
|
|
9,806,676 |
|
|
|
|
|
|
|
|
11,857,138 |
|
|
Illinois — 20.5% |
|
|
|
|
|
|
|
|
City of Chicago Illinois, ARB, General, Third Lien, |
|
|
|
|
|
|
|
|
(AGM), 5.75%, 1/01/23 |
|
|
5,670 |
|
|
5,940,913 |
|
|
(Syncora), 6.00%, 1/01/29 |
|
|
2,500 |
|
|
2,595,775 |
|
|
City of Chicago Illinois, Board of Education, GO, |
|
|
|
|
|
|
|
|
(AGM), 5.50%, 12/01/31 |
|
|
3,000 |
|
|
3,248,340 |
|
|
Chicago School Reform Board, (NPFGC), 5.50%, |
|
|
1,000 |
|
|
1,073,470 |
|
|
City of Chicago Illinois, Board of Education, GO, Series A, |
|
|
2,375 |
|
|
2,516,312 |
|
|
City of Chicago Illinois, Park District, GO, Harbor Facilities, |
|
|
550 |
|
|
577,297 |
|
|
City of Chicago Illinois, Transit Authority, RB, Sales Tax |
|
|
595 |
|
|
615,218 |
|
|
City of Chicago Illinois, RB, Series A: |
|
|
|
|
|
|
|
|
(AGC), 5.00%, 1/01/38 |
|
|
2,000 |
|
|
2,035,960 |
|
|
General Third Lien, 5.75%, 1/01/39 |
|
|
5,110 |
|
|
5,577,105 |
|
|
City of Chicago Illinois, Refunding GARB, Third Lien, |
|
|
4,500 |
|
|
4,526,145 |
|
|
County of Cook Illinois, GO, Capital Improvement, |
|
|
2,460 |
|
|
2,591,536 |
|
|
Illinois Finance Authority, RB, Carle Foundation, Series A, |
|
|
650 |
|
|
654,771 |
|
|
Illinois Finance Authority, Refunding RB, Carle Foundation, |
|
|
1,000 |
|
|
1,023,670 |
|
|
Illinois Municipal Electric Agency, RB, Series A (NPFGC), |
|
|
1,000 |
|
|
1,034,650 |
|
|
Illinois Sports Facilities Authority, RB, State Tax Supported |
|
|
17,620 |
|
|
18,546,812 |
|
|
Metropolitan Pier & Exposition Authority, RB, CAB, |
|
|
9,950 |
|
|
2,690,579 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Illinois (concluded) |
|
|
|
|
|
|
|
|
Metropolitan Pier & Exposition Authority, Refunding |
|
|
|
|
|
|
|
|
5.83%, 6/15/27 |
|
$ |
1,300 |
|
$ |
550,225 |
|
|
6.25%, 6/15/44 |
|
|
3,450 |
|
|
476,721 |
|
|
Railsplitter Tobacco Settlement Authority, RB, 6.00%, |
|
|
675 |
|
|
701,879 |
|
|
Regional Transportation Authority, RB, Series A (AMBAC), |
|
|
8,800 |
|
|
10,485,288 |
|
|
|
|
|
|
|
|
67,462,666 |
|
|
Indiana — 1.3% |
|
|
|
|
|
|
|
|
Indiana Finance Authority, Wastewater Utility, RB, |
|
|
1,100 |
|
|
1,173,535 |
|
|
Indiana Municipal Power Agency, RB, Series B, 5.75%, |
|
|
400 |
|
|
410,848 |
|
|
Indianapolis Local Public Improvement Bond Bank, |
|
|
|
|
|
|
|
|
5.25%, 1/01/29 |
|
|
600 |
|
|
644,364 |
|
|
5.50%, 1/01/38 |
|
|
1,825 |
|
|
1,964,558 |
|
|
|
|
|
|
|
|
4,193,305 |
|
|
Iowa — 1.8% |
|
|
|
|
|
|
|
|
Iowa Finance Authority, RB, Series A (AGC), 5.63%, |
|
|
5,725 |
|
|
6,013,311 |
|
|
Louisiana — 0.6% |
|
|
|
|
|
|
|
|
Jefferson Parish Hospital Service District No. 1, |
|
|
420 |
|
|
439,849 |
|
|
Louisiana Public Facilities Authority, Refunding RB, |
|
|
1,250 |
|
|
1,401,600 |
|
|
|
|
|
|
|
|
1,841,449 |
|
|
Massachusetts — 1.9% |
|
|
|
|
|
|
|
|
Massachusetts HFA, RB, AMT (AGM), Rental Mortgage, |
|
|
1,700 |
|
|
1,701,190 |
|
|
Massachusetts HFA, Refunding RB, AMT: |
|
|
|
|
|
|
|
|
Rental Housing, Series A (AGM), 5.15%, 7/01/26 |
|
|
625 |
|
|
630,812 |
|
|
Series C, 5.35%, 12/01/42 |
|
|
1,150 |
|
|
1,158,602 |
|
|
Massachusetts Water Resources Authority, Refunding RB, |
|
|
2,700 |
|
|
2,838,726 |
|
|
|
|
|
|
|
|
6,329,330 |
|
|
Michigan — 7.1% |
|
|
|
|
|
|
|
|
City of Detroit Michigan, RB, Series B: |
|
|
|
|
|
|
|
|
Second Lien (AGM), 6.25%, 7/01/36 |
|
|
400 |
|
|
448,516 |
|
|
Second Lien (AGM), 7.00%, 7/01/36 |
|
|
200 |
|
|
235,650 |
|
|
Senior Lien (AGM), 7.50%, 7/01/33 |
|
|
700 |
|
|
829,843 |
|
|
System, Second Lien, Series B (NPFGC), 5.00%, |
|
|
2,600 |
|
|
2,570,750 |
|
|
City of Detroit Michigan, Refunding RB, Second Lien, |
|
|
2,500 |
|
|
2,679,575 |
|
|
Kalamazoo Hospital Finance Authority, RB, Bronson |
|
|
425 |
|
|
434,673 |
|
|
Lansing Board of Water & Light Utilities, RB, Series A, |
|
|
1,700 |
|
|
1,871,156 |
|
|
Michigan Higher Education Student Loan Authority, |
|
|
1,500 |
|
|
1,509,330 |
|
|
Michigan State Building Authority, Refunding RB, |
|
|
|
|
|
|
|
|
Series I-A, 5.38%, 10/15/36 |
|
|
145 |
|
|
155,932 |
|
|
Series I-A, 5.38%, 10/15/41 |
|
|
700 |
|
|
749,280 |
|
|
Series II-A (AGM), 5.25%, 10/15/36 |
|
|
900 |
|
|
958,869 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
20 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniEnhanced Fund, Inc. (MEN) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Michigan (concluded) |
|
|
|
|
|
|
|
|
Michigan State Finance Authority, Refunding RB, |
|
$ |
4,300 |
|
$ |
4,274,114 |
|
|
Michigan State Housing Development Authority, RB, |
|
|
1,100 |
|
|
1,120,273 |
|
|
Michigan Strategic Fund, Refunding RB, Detroit |
|
|
|
|
|
|
|
|
Series A, 5.50%, 6/01/30 |
|
|
1,300 |
|
|
1,302,457 |
|
|
Series C, 5.45%, 12/15/32 |
|
|
4,300 |
|
|
4,301,075 |
|
|
|
|
|
|
|
|
23,441,493 |
|
|
Minnesota — 0.9% |
|
|
|
|
|
|
|
|
City of Minneapolis Minnesota, Refunding RB, Fairview |
|
|
2,500 |
|
|
2,803,550 |
|
|
Nevada — 3.7% |
|
|
|
|
|
|
|
|
City of Carson City Nevada, RB, Carson-Tahoe Hospital |
|
|
2,750 |
|
|
2,583,625 |
|
|
City of Las Vegas Nevada, GO, Limited Tax, Performing |
|
|
850 |
|
|
947,750 |
|
|
County of Clark Nevada, RB: |
|
|
|
|
|
|
|
|
Las Vegas-McCarran International Airport, Series A |
|
|
3,800 |
|
|
3,961,082 |
|
|
Southwest Gas Corp. Project, Series A, AMT (FGIC), |
|
|
75 |
|
|
66,913 |
|
|
Subordinate Lien, Series A-2 (NPFGC), 5.00%, |
|
|
1,500 |
|
|
1,515,555 |
|
|
Subordinate Lien, Series A-2 (NPFGC), 5.00%, |
|
|
3,200 |
|
|
3,221,984 |
|
|
|
|
|
|
|
|
12,296,909 |
|
|
New Jersey — 8.7% |
|
|
|
|
|
|
|
|
New Jersey EDA, RB: |
|
|
|
|
|
|
|
|
Cigarette Tax (Radian), 5.50%, 6/15/31 |
|
|
600 |
|
|
557,148 |
|
|
Cigarette Tax (Radian), 5.75%, 6/15/34 |
|
|
305 |
|
|
287,694 |
|
|
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, |
|
|
5,025 |
|
|
5,277,607 |
|
|
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, |
|
|
7,800 |
|
|
8,076,666 |
|
|
School Facilities Construction, Series Z (AGC), |
|
|
2,000 |
|
|
2,202,720 |
|
|
New Jersey EDA, Refunding RB, School Facilities |
|
|
4,800 |
|
|
5,422,416 |
|
|
New Jersey Higher Education Student Assistance |
|
|
|
|
|
|
|
|
5.50%, 12/01/26 |
|
|
600 |
|
|
611,130 |
|
|
5.75%, 12/01/27 |
|
|
3,870 |
|
|
4,001,425 |
|
|
New Jersey Transportation Trust Fund Authority, RB, |
|
|
2,000 |
|
|
2,159,560 |
|
|
|
|
|
|
|
|
28,596,366 |
|
|
New York — 4.0% |
|
|
|
|
|
|
|
|
Erie County Industrial Development Agency, RB, City |
|
|
1,500 |
|
|
1,643,955 |
|
|
Hudson New York Yards Infrastructure Corp., RB, Series A, |
|
|
700 |
|
|
741,237 |
|
|
Metropolitan Transportation Authority, RB, Series 2008C, |
|
|
4,000 |
|
|
4,683,000 |
|
|
New York City Transitional Finance Authority, RB, |
|
|
|
|
|
|
|
|
5.50%, 1/15/33 |
|
|
1,600 |
|
|
1,723,936 |
|
|
5.50%, 1/15/34 |
|
|
2,750 |
|
|
2,996,867 |
|
|
New York State Dormitory Authority, ERB, Series B, |
|
|
1,200 |
|
|
1,356,576 |
|
|
|
|
|
|
|
|
13,145,571 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
North Carolina — 0.7% |
|
|
|
|
|
|
|
|
North Carolina Medical Care Commission, RB, Novant |
|
$ |
2,550 |
|
$ |
2,342,328 |
|
|
Ohio — 0.5% |
|
|
|
|
|
|
|
|
County of Lucas Ohio, Refunding RB, Promedica |
|
|
530 |
|
|
603,363 |
|
|
Ohio Higher Educational Facility Commission, |
|
|
1,025 |
|
|
1,034,881 |
|
|
|
|
|
|
|
|
1,638,244 |
|
|
Pennsylvania — 0.8% |
|
|
|
|
|
|
|
|
Pennsylvania HFA, Refunding RB, Series 99A, AMT, |
|
|
1,500 |
|
|
1,518,705 |
|
|
Pennsylvania Turnpike Commission, RB, Subordinate, |
|
|
575 |
|
|
663,263 |
|
|
Philadelphia School District, GO, Series E, 6.00%, |
|
|
400 |
|
|
434,688 |
|
|
|
|
|
|
|
|
2,616,656 |
|
|
Puerto Rico — 2.6% |
|
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, First |
|
|
|
|
|
|
|
|
6.38%, 8/01/39 |
|
|
3,200 |
|
|
3,546,688 |
|
|
6.00%, 8/01/42 |
|
|
2,275 |
|
|
2,452,814 |
|
|
Puerto Rico Sales Tax Financing Corp., Refunding RB: |
|
|
|
|
|
|
|
|
CAB, Series A (NPFGC), 5.68%, 8/01/41 (b) |
|
|
8,500 |
|
|
1,323,535 |
|
|
First Sub-Series C, 6.00%, 8/01/39 |
|
|
1,180 |
|
|
1,281,858 |
|
|
|
|
|
|
|
|
8,604,895 |
|
|
Rhode Island — 0.8% |
|
|
|
|
|
|
|
|
Rhode Island Health & Educational Building Corp., |
|
|
2,375 |
|
|
2,630,978 |
|
|
South Carolina — 1.3% |
|
|
|
|
|
|
|
|
South Carolina Jobs-EDA, Refunding RB, Palmetto |
|
|
115 |
|
|
125,849 |
|
|
South Carolina State Public Service Authority, RB, |
|
|
1,000 |
|
|
1,087,410 |
|
|
South Carolina Transportation Infrastructure Bank, RB, |
|
|
3,000 |
|
|
3,156,510 |
|
|
|
|
|
|
|
|
4,369,769 |
|
|
Tennessee — 2.1% |
|
|
|
|
|
|
|
|
Memphis Center City Revenue Finance Corp., RB, |
|
|
1,130 |
|
|
1,200,455 |
|
|
Metropolitan Government of Nashville & Davidson |
|
|
5,000 |
|
|
5,715,800 |
|
|
|
|
|
|
|
|
6,916,255 |
|
|
Texas — 10.7% |
|
|
|
|
|
|
|
|
City of Houston Texas, Refunding RB, Combined, |
|
|
|
|
|
|
|
|
6.00%, 11/15/35 |
|
|
2,100 |
|
|
2,397,402 |
|
|
5.38%, 11/15/38 |
|
|
1,350 |
|
|
1,463,360 |
|
|
Dallas-Fort Worth International Airport Facilities |
|
|
13,000 |
|
|
13,073,190 |
|
|
Mansfield ISD Texas, GO, School Building (PSF-GTD), |
|
|
1,725 |
|
|
1,840,265 |
|
|
North Texas Tollway Authority, RB (AGC), System, |
|
|
|
|
|
|
|
|
Series K-1, 5.75%, 1/01/38 |
|
|
3,800 |
|
|
4,095,222 |
|
|
Series K-2, 6.00%, 1/01/38 |
|
|
4,015 |
|
|
4,393,012 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
21 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniEnhanced Fund, Inc. (MEN) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Texas (concluded) |
|
|
|
|
|
|
|
|
North Texas Tollway Authority, Refunding RB, First Tier: |
|
|
|
|
|
|
|
|
Series A, 6.00%, 1/01/28 |
|
$ |
2,795 |
|
$ |
3,096,105 |
|
|
System (NPFGC), 5.75%, 1/01/40 |
|
|
1,600 |
|
|
1,667,184 |
|
|
Texas State Turnpike Authority, RB, First Tier, Series A |
|
|
3,150 |
|
|
3,140,802 |
|
|
|
|
|
|
|
|
35,166,542 |
|
|
Washington — 1.9% |
|
|
|
|
|
|
|
|
Central Puget Sound Regional Transit Authority, RB, |
|
|
1,600 |
|
|
1,681,120 |
|
|
Washington Health Care Facilities Authority, RB, |
|
|
|
|
|
|
|
|
5.00%, 10/01/39 |
|
|
900 |
|
|
904,257 |
|
|
5.25%, 10/01/39 |
|
|
625 |
|
|
640,781 |
|
|
Washington Health Care Facilities Authority, |
|
|
2,800 |
|
|
2,921,772 |
|
|
|
|
|
|
|
|
6,147,930 |
|
|
Wisconsin — 0.4% |
|
|
|
|
|
|
|
|
Wisconsin Health & Educational Facilities Authority, RB, |
|
|
1,375 |
|
|
1,420,925 |
|
|
Total Municipal Bonds — 120.0% |
|
|
|
|
|
395,268,825 |
|
|
|
|||||||
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
|
|
|
|
|
|
|
Arizona — 0.9% |
|
|
|
|
|
|
|
|
Phoenix Civic Improvement Corp., RB, Junior Lien, |
|
|
1,200 |
|
|
1,284,216 |
|
|
Salt River Project Agricultural Improvement & Power |
|
|
1,500 |
|
|
1,572,825 |
|
|
|
|
|
|
|
|
2,857,041 |
|
|
California — 4.9% |
|
|
|
|
|
|
|
|
Los Angeles Community College District California, GO, |
|
|
2,500 |
|
|
2,623,200 |
|
|
Orange County Sanitation District, COP (NPFGC), 5.00%, |
|
|
7,458 |
|
|
7,583,955 |
|
|
San Diego Community College District California, GO, |
|
|
404 |
|
|
439,952 |
|
|
San Diego County Water Authority, COP, Refunding, |
|
|
2,810 |
|
|
2,946,482 |
|
|
Tamalpais Union High School District California, GO, |
|
|
1,605 |
|
|
1,672,474 |
|
|
University of California, RB, Series O, 5.75%, 5/15/34 |
|
|
840 |
|
|
940,061 |
|
|
|
|
|
|
|
|
16,206,124 |
|
|
Colorado — 0.3% |
|
|
|
|
|
|
|
|
Colorado Health Facilities Authority, Refunding RB, |
|
|
900 |
|
|
942,646 |
|
|
District of Columbia — 1.0% |
|
|
|
|
|
|
|
|
District of Columbia, RB, Series A, 5.50%, 12/01/30 |
|
|
1,005 |
|
|
1,138,615 |
|
|
District of Columbia Water & Sewer Authority, RB, |
|
|
1,770 |
|
|
2,087,261 |
|
|
|
|
|
|
|
|
3,225,876 |
|
|
Florida — 7.2% |
|
|
|
|
|
|
|
|
City of Tallahassee Florida Energy System, RB (NPFGC): |
|
|
|
|
|
|
|
|
5.00%, 10/01/32 |
|
|
4,000 |
|
|
4,127,880 |
|
|
5.00%, 10/01/37 |
|
|
7,500 |
|
|
7,763,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
Par |
|
Value |
|
||
|
Florida (concluded) |
|
|
|
|
|
|
|
|
Florida State Board of Education, GO, Series D, 5.00%, |
|
$ |
1,349 |
|
$ |
1,424,419 |
|
|
Miami-Dade County School Board, COP, Refunding, |
|
|
10,000 |
|
|
10,279,100 |
|
|
|
|
|
|
|
|
23,594,874 |
|
|
Georgia — 5.5% |
|
|
|
|
|
|
|
|
City of Atlanta Georgia, RB, General, Series B (AGM), |
|
|
17,356 |
|
|
17,963,711 |
|
|
Illinois — 2.0% |
|
|
|
|
|
|
|
|
Illinois State Toll Highway Authority, RB, Series B, 5.50%, |
|
|
1,880 |
|
|
1,982,923 |
|
|
State of Illinois, RB, Build Illinois, Series B, 5.25%, |
|
|
4,399 |
|
|
4,603,562 |
|
|
|
|
|
|
|
|
6,586,485 |
|
|
Louisiana — 1.7% |
|
|
|
|
|
|
|
|
State of Louisiana Gas & Fuels, RB, Series A (AGM), |
|
|
5,400 |
|
|
5,571,018 |
|
|
Massachusetts — 3.4% |
|
|
|
|
|
|
|
|
Massachusetts School Building Authority, RB, Series A |
|
|
10,600 |
|
|
11,308,035 |
|
|
Nevada — 3.4% |
|
|
|
|
|
|
|
|
City of Las Vegas Nevada, GO, Limited Tax, Performing |
|
|
3,778 |
|
|
4,189,510 |
|
|
Clark County Water Reclamation District, GO, Series B: |
|
|
|
|
|
|
|
|
5.50%, 7/01/29 |
|
|
4,499 |
|
|
4,984,084 |
|
|
5.75%, 7/01/34 |
|
|
1,829 |
|
|
2,053,020 |
|
|
|
|
|
|
|
|
11,226,614 |
|
|
New York — 0.9% |
|
|
|
|
|
|
|
|
New York City Municipal Water & Sewer Finance |
|
|
1,260 |
|
|
1,419,565 |
|
|
Triborough Bridge & Tunnel Authority, RB, General, |
|
|
1,300 |
|
|
1,424,683 |
|
|
|
|
|
|
|
|
2,844,248 |
|
|
Ohio — 0.2% |
|
|
|
|
|
|
|
|
State of Ohio, RB, Cleveland Clinic Health, Series B, |
|
|
580 |
|
|
608,275 |
|
|
South Carolina — 2.6% |
|
|
|
|
|
|
|
|
Charleston Educational Excellence Finance Corp., RB, |
|
|
|
|
|
|
|
|
5.25%, 12/01/28 |
|
|
3,120 |
|
|
3,307,699 |
|
|
5.25%, 12/01/29 |
|
|
2,765 |
|
|
2,919,508 |
|
|
5.25%, 12/01/30 |
|
|
1,010 |
|
|
1,063,702 |
|
|
South Carolina State Public Service Authority, RB, |
|
|
1,275 |
|
|
1,386,448 |
|
|
|
|
|
|
|
|
8,677,357 |
|
|
Texas — 1.2% |
|
|
|
|
|
|
|
|
Clear Creek ISD Texas, GO, Refunding, School Building |
|
|
2,200 |
|
|
2,420,506 |
|
|
North East ISD Texas, GO, School Building, Series A |
|
|
1,600 |
|
|
1,694,000 |
|
|
|
|
|
|
|
|
4,114,506 |
|
|
Utah — 1.6% |
|
|
|
|
|
|
|
|
Utah Transit Authority, RB, Series A (AGM), 5.00%, |
|
|
5,000 |
|
|
5,276,250 |
|
|
Virginia — 0.1% |
|
|
|
|
|
|
|
|
Fairfax County IDA Virginia, Refunding RB, Health Care, |
|
|
350 |
|
|
373,758 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
22 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments (concluded) |
BlackRock MuniEnhanced Fund, Inc. (MEN) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
Par |
|
Value |
|
||
|
Washington — 1.3% |
|
|
|
|
|
|
|
|
Central Puget Sound Regional Transit Authority, RB, |
|
$ |
4,004 |
|
$ |
4,224,709 |
|
|
Wisconsin — 0.4% |
|
|
|
|
|
|
|
|
Wisconsin Health & Educational Facilities Authority, |
|
|
1,430 |
|
|
1,446,243 |
|
|
Total
Municipal Bonds Transferred to |
|
|
|
|
|
127,047,770 |
|
|
Total
Long-Term Investments |
|
|
|
|
|
522,316,595 |
|
|
|
|||||||
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
Short-Term Securities |
|
Shares |
|
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.01% (g)(h) |
|
|
8,274,103 |
|
|
8,274,103 |
|
|
Total
Short-Term Securities |
|
|
|
|
|
8,274,103 |
|
|
Total Investments (Cost — $511,416,468*) — 161.1% |
|
|
|
|
|
530,590,698 |
|
|
Other Assets Less Liabilities — 1.6% |
|
|
|
|
|
5,292,563 |
|
|
Liability
for TOB Trust Certificates, Including |
|
|
|
|
|
(63,983,407 |
) |
|
VRDP Shares, at Liquidation Value — (43.3)% |
|
|
|
|
|
(142,500,000 |
) |
|
Net Assets Applicable to Common Shares — 100.0% |
|
|
|
|
$ |
329,399,854 |
|
|
|
|
|
|
|
|
* |
The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows: |
|
|
|
|
|
|
|
Aggregate cost |
|
$ |
447,973,710 |
|
|
Gross unrealized appreciation |
|
$ |
22,449,871 |
|
|
Gross unrealized depreciation |
|
|
(3,779,967 |
) |
|
Net unrealized appreciation |
|
$ |
18,669,904 |
|
|
|
|
|
(a) |
Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date. |
|
|
|
|
(b) |
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
|
|
|
|
(c) |
Variable rate security. Rate shown is as of report date. |
|
|
|
|
(d) |
When-issued security. Unsettled when-issued transactions were as follows: |
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
|
Value |
|
|
Unrealized |
|
|
Pershing LLC |
|
$ |
2,516,313 |
|
$ |
57,808 |
|
|
Wells Fargo Bank, Inc. |
|
$ |
615,218 |
|
$ |
2,410 |
|
|
|
|
|
(e) |
US governments 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. |
|
|
|
|
(f) |
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
(g) |
Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2 (a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate |
|
Shares |
|
Net |
|
Shares |
|
Income |
|
||||
|
FFI Institutional Tax-Exempt Fund |
|
|
3,470,954 |
|
|
4,803,149 |
|
|
8,274,103 |
|
$ |
1,077 |
|
|
|
|
|
|
(h) |
Represents the current yield as of report date. |
|
|
|
|
|
|
• |
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
|
|
|
|
|
|
|
• |
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
|
• |
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
|
|
|
|
|
|
• |
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments) |
|
|
|
|
|
|
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements. |
|
|
|
|
|
|
|
The following table summarizes the inputs used as of October 31, 2011 in determining the fair valuation of the Fund’s investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term |
|
|
— |
|
$ |
522,316,595 |
|
|
— |
|
$ |
522,316,595 |
|
|
Short-Term |
|
$ |
8,274,103 |
|
|
— |
|
|
— |
|
|
8,274,103 |
|
|
Total |
|
$ |
8,274,103 |
|
$ |
522,316,595 |
|
|
— |
|
$ |
530,590,698 |
|
|
|
|
|
|
|
1 |
See above Schedule of Investments for values in each state or political subdivision. |
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
23 |
|
|
|
|
|
|
|
|
|
|
Schedule of Investments October 31, 2011 (Unaudited) |
BlackRock MuniHoldings Fund, Inc. (MHD) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Alabama — 1.9% |
|
|
|
|
|
|
|
|
County of Jefferson Alabama, RB, Series A, 5.00%, |
|
$ |
4,550 |
|
$ |
4,192,461 |
|
|
Alaska — 0.5% |
|
|
|
|
|
|
|
|
Northern Tobacco Securitization Corp., RB, Asset-Backed, |
|
|
1,660 |
|
|
1,047,161 |
|
|
Arizona — 4.2% |
|
|
|
|
|
|
|
|
Maricopa County IDA Arizona, RB, Arizona Charter |
|
|
2,200 |
|
|
1,476,486 |
|
|
Phoenix IDA Arizona, Refunding RB, America West |
|
|
2,215 |
|
|
1,892,717 |
|
|
Salt River Project Agricultural Improvement & Power |
|
|
1,690 |
|
|
1,772,050 |
|
|
Salt Verde Financial Corp., RB, Senior: |
|
|
|
|
|
|
|
|
5.00%, 12/01/32 |
|
|
2,000 |
|
|
1,840,840 |
|
|
5.00%, 12/01/37 |
|
|
2,360 |
|
|
2,136,909 |
|
|
Show Low Improvement District, Special Assessment |
|
|
260 |
|
|
260,585 |
|
|
|
|
|
|
|
|
9,379,587 |
|
|
Arkansas — 0.5% |
|
|
|
|
|
|
|
|
County of Little River Arkansas, Refunding RB, |
|
|
1,155 |
|
|
1,145,725 |
|
|
California — 14.1% |
|
|
|
|
|
|
|
|
Agua Caliente Band of Cahuilla Indians, RB, 5.60%, |
|
|
255 |
|
|
250,344 |
|
|
California Health Facilities Financing Authority, |
|
|
|
|
|
|
|
|
St. Joseph Health System, Series A, 5.75%, 7/01/39 |
|
|
1,530 |
|
|
1,593,327 |
|
|
Sutter Health, Series B, 6.00%, 8/15/42 |
|
|
2,200 |
|
|
2,398,836 |
|
|
California State Public Works Board, RB, Various Capital |
|
|
820 |
|
|
901,254 |
|
|
California Statewide Communities Development |
|
|
|
|
|
|
|
|
Health Facility, Memorial Health Services, Series A, |
|
|
2,500 |
|
|
2,607,800 |
|
|
John Muir Health, 5.13%, 7/01/39 |
|
|
1,510 |
|
|
1,482,503 |
|
|
Los Angeles Department of Airports, RB, Series A, |
|
|
555 |
|
|
592,312 |
|
|
Los Angeles Department of Airports, Refunding RB, |
|
|
4,115 |
|
|
4,330,996 |
|
|
Montebello Unified School District California, GO, |
|
|
|
|
|
|
|
|
5.64%, 8/01/22 |
|
|
2,405 |
|
|
1,320,297 |
|
|
5.63%, 8/01/23 |
|
|
2,455 |
|
|
1,252,394 |
|
|
San Diego Unified School District California, GO, CAB, |
|
|
3,475 |
|
|
1,278,661 |
|
|
State of California, GO, Various Purpose: |
|
|
|
|
|
|
|
|
5.00%, 10/01/41 |
|
|
2,115 |
|
|
2,108,401 |
|
|
6.50%, 4/01/33 |
|
|
8,370 |
|
|
9,759,504 |
|
|
University of California, RB, Limited Project, Series B, |
|
|
1,665 |
|
|
1,674,457 |
|
|
|
|
|
|
|
|
31,551,086 |
|
|
Colorado — 2.0% |
|
|
|
|
|
|
|
|
Colorado Educational & Cultural Facilities Authority, RB, |
|
|
1,455 |
|
|
1,363,422 |
|
|
Plaza Metropolitan District No. 1 Colorado, Tax Allocation |
|
|
1,000 |
|
|
934,480 |
|
|
Regional Transportation District, COP, Series A, 5.38%, |
|
|
710 |
|
|
752,763 |
|
|
University of Colorado, RB, Series A, 5.38%, 6/01/38 |
|
|
1,250 |
|
|
1,341,138 |
|
|
|
|
|
|
|
|
4,391,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Connecticut — 2.5% |
|
|
|
|
|
|
|
|
Connecticut State Development Authority, RB, AFCO, |
|
$ |
2,700 |
|
$ |
1,803,519 |
|
|
Connecticut State Health & Educational Facility |
|
|
|
|
|
|
|
|
Ascension Health Senior Credit, 5.00%, 11/15/40 |
|
|
955 |
|
|
981,053 |
|
|
Wesleyan University, 5.00%, 7/01/35 |
|
|
2,515 |
|
|
2,689,918 |
|
|
|
|
|
|
|
|
5,474,490 |
|
|
Delaware — 1.5% |
|
|
|
|
|
|
|
|
County of Sussex Delaware, RB, NRG Energy, Inc., |
|
|
790 |
|
|
794,622 |
|
|
Delaware State EDA, RB, Exempt Facilities, Indian River |
|
|
2,830 |
|
|
2,595,336 |
|
|
|
|
|
|
|
|
3,389,958 |
|
|
District of Columbia — 2.4% |
|
|
|
|
|
|
|
|
Metropolitan Washington Airports Authority, RB: |
|
|
|
|
|
|
|
|
CAB, Second Senior Lien, Series B (AGC), |
|
|
13,485 |
|
|
3,241,659 |
|
|
First Senior Lien, Series A, 5.00%, 10/01/39 |
|
|
505 |
|
|
523,003 |
|
|
First Senior Lien, Series A, 5.25%, 10/01/44 |
|
|
1,470 |
|
|
1,527,801 |
|
|
|
|
|
|
|
|
5,292,463 |
|
|
Florida — 9.0% |
|
|
|
|
|
|
|
|
City of Clearwater Florida, RB, Series A, 5.25%, |
|
|
2,375 |
|
|
2,556,141 |
|
|
County of Broward Florida, RB, Series A, 5.25%, |
|
|
750 |
|
|
805,200 |
|
|
County of Miami-Dade Florida, RB: |
|
|
|
|
|
|
|
|
CAB, Sub-Series A (NPFGC), 5.24%, 10/01/37 (b) |
|
|
2,340 |
|
|
412,355 |
|
|
Water & Sewer System, 5.00%, 10/01/34 |
|
|
3,935 |
|
|
4,110,383 |
|
|
County of Miami-Dade Florida, Refunding RB, Miami |
|
|
2,620 |
|
|
2,693,674 |
|
|
Greater Orlando Aviation Authority Florida, RB, Special |
|
|
2,095 |
|
|
1,969,656 |
|
|
Hillsborough County IDA, RB, National Gypsum Co., |
|
|
1,900 |
|
|
1,693,280 |
|
|
Mid-Bay Bridge Authority, RB, Series A, 7.25%, |
|
|
1,570 |
|
|
1,643,288 |
|
|
Midtown Miami Community Development District, |
|
|
2,400 |
|
|
2,407,656 |
|
|
Palm Coast Park Community Development District, |
|
|
665 |
|
|
406,475 |
|
|
Preserve at Wilderness Lake Community Development |
|
|
1,495 |
|
|
1,339,505 |
|
|
|
|
|
|
|
|
20,037,613 |
|
|
Georgia — 1.4% |
|
|
|
|
|
|
|
|
DeKalb Private Hospital Authority, Refunding RB, |
|
|
585 |
|
|
601,199 |
|
|
Metropolitan Atlanta Rapid Transit Authority, Sales Tax |
|
|
2,410 |
|
|
2,512,642 |
|
|
|
|
|
|
|
|
3,113,841 |
|
|
Guam — 0.7% |
|
|
|
|
|
|
|
|
Territory of Guam, GO, Series A: |
|
|
|
|
|
|
|
|
6.00%, 11/15/19 |
|
|
440 |
|
|
447,836 |
|
|
6.75%, 11/15/29 |
|
|
630 |
|
|
649,486 |
|
|
7.00%, 11/15/39 |
|
|
430 |
|
|
445,566 |
|
|
|
|
|
|
|
|
1,542,888 |
|
|
Hawaii — 0.4% |
|
|
|
|
|
|
|
|
State of Hawaii, Refunding RB, Series A, 5.25%, |
|
|
945 |
|
|
993,261 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
24 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniHoldings Fund, Inc. (MHD) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Illinois — 9.9% |
|
|
|
|
|
|
|
|
City of Chicago Illinois, Board of Education, GO, |
|
|
|
|
|
|
|
|
5.00%, 12/01/41 |
|
$ |
485 |
|
$ |
483,482 |
|
|
5.50%, 12/01/39 |
|
|
1,460 |
|
|
1,546,870 |
|
|
City of Chicago Illinois, RB, O’ Hare International Airport, |
|
|
2,000 |
|
|
2,182,820 |
|
|
City of Chicago Illinois, Refunding RB, General, Third |
|
|
4,055 |
|
|
4,664,953 |
|
|
City of Chicago Illinois, Special Assessment Bonds, |
|
|
1,200 |
|
|
1,228,968 |
|
|
City of Chicago Illinois, Transit Authority, RB, Sales Tax |
|
|
730 |
|
|
751,864 |
|
|
Illinois Finance Authority, Refunding RB, Central DuPage |
|
|
1,115 |
|
|
1,154,360 |
|
|
Illinois HDA, RB, Homeowner Mortgage, Sub-Series C2, |
|
|
2,580 |
|
|
2,589,185 |
|
|
Metropolitan Pier & Exposition Authority, Refunding RB, |
|
|
|
|
|
|
|
|
CAB, Series B, 6.25%, 6/15/47 (b) |
|
|
13,220 |
|
|
1,496,636 |
|
|
Series B, 5.00%, 6/15/50 |
|
|
2,190 |
|
|
2,135,031 |
|
|
Series B-2, 5.00%, 6/15/50 |
|
|
1,740 |
|
|
1,693,490 |
|
|
Railsplitter Tobacco Settlement Authority, RB: |
|
|
|
|
|
|
|
|
5.50%, 6/01/23 |
|
|
930 |
|
|
981,689 |
|
|
6.00%, 6/01/28 |
|
|
800 |
|
|
831,856 |
|
|
State of Illinois, RB, Build Illinois, Series B, 5.25%, |
|
|
440 |
|
|
460,495 |
|
|
|
|
|
|
|
|
22,201,699 |
|
|
Indiana — 2.2% |
|
|
|
|
|
|
|
|
Indiana Finance Authority, RB: |
|
|
|
|
|
|
|
|
Parkview Health System, Series A, 5.75%, 5/01/31 |
|
|
2,300 |
|
|
2,408,261 |
|
|
Sisters of St. Francis Health, 5.25%, 11/01/39 |
|
|
585 |
|
|
596,092 |
|
|
Wastewater Utility, First Lien, CWA Authority Project, |
|
|
1,090 |
|
|
1,162,866 |
|
|
Indiana Municipal Power Agency, RB, Series B, 6.00%, |
|
|
775 |
|
|
845,982 |
|
|
|
|
|
|
|
|
5,013,201 |
|
|
Kansas — 1.3% |
|
|
|
|
|
|
|
|
Kansas Development Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
Adventist Health, 5.75%, 11/15/38 |
|
|
1,520 |
|
|
1,640,567 |
|
|
Sisters of Leavenworth, Series A, 5.00%, 1/01/40 |
|
|
1,155 |
|
|
1,167,266 |
|
|
|
|
|
|
|
|
2,807,833 |
|
|
Kentucky — 0.6% |
|
|
|
|
|
|
|
|
Kentucky Economic Development Finance Authority, |
|
|
700 |
|
|
731,199 |
|
|
Louisville & Jefferson County Metropolitan Sewer |
|
|
700 |
|
|
708,442 |
|
|
|
|
|
|
|
|
1,439,641 |
|
|
Louisiana — 2.1% |
|
|
|
|
|
|
|
|
East Baton Rouge Sewerage Commission, RB, Series A, |
|
|
570 |
|
|
603,385 |
|
|
Louisiana Local Government Environmental Facilities & |
|
|
3,500 |
|
|
3,652,285 |
|
|
New Orleans Aviation Board, Refunding RB, Passenger |
|
|
430 |
|
|
438,260 |
|
|
|
|
|
|
|
|
4,693,930 |
|
|
Maine — 0.1% |
|
|
|
|
|
|
|
|
Maine Health & Higher Educational Facilities Authority, |
|
|
210 |
|
|
213,326 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Maryland — 1.1% |
|
|
|
|
|
|
|
|
Maryland EDC, RB, Transportation Facilities Project, |
|
$ |
300 |
|
$ |
296,814 |
|
|
Maryland EDC, Refunding RB, CNX Marine |
|
|
580 |
|
|
582,297 |
|
|
Maryland Health & Higher Educational Facilities |
|
|
1,520 |
|
|
1,579,994 |
|
|
|
|
|
|
|
|
2,459,105 |
|
|
Massachusetts — 3.9% |
|
|
|
|
|
|
|
|
Massachusetts Development Finance Agency, |
|
|
1,165 |
|
|
1,222,749 |
|
|
Massachusetts Health & Educational Facilities |
|
|
1,255 |
|
|
1,280,539 |
|
|
Massachusetts HFA, RB, M/F Housing, Series A, AMT, |
|
|
2,900 |
|
|
2,742,414 |
|
|
Massachusetts State School Building Authority, RB, |
|
|
3,150 |
|
|
3,363,822 |
|
|
|
|
|
|
|
|
8,609,524 |
|
|
Michigan — 2.2% |
|
|
|
|
|
|
|
|
City of Detroit Michigan, RB, Senior Lien, Series B |
|
|
635 |
|
|
752,786 |
|
|
Flint Hospital Building Authority Michigan, Refunding |
|
|
1,150 |
|
|
1,150,069 |
|
|
Kalamazoo Hospital Finance Authority, Refunding RB, |
|
|
955 |
|
|
960,787 |
|
|
Michigan State Hospital Finance Authority, Refunding |
|
|
2,105 |
|
|
2,151,100 |
|
|
|
|
|
|
|
|
5,014,742 |
|
|
Minnesota — 1.1% |
|
|
|
|
|
|
|
|
City of Minneapolis Minnesota, Refunding RB, Fairview |
|
|
2,135 |
|
|
2,363,680 |
|
|
Mississippi — 0.7% |
|
|
|
|
|
|
|
|
Mississippi Development Bank Special Obligation, |
|
|
|
|
|
|
|
|
5.25%, 7/01/17 |
|
|
350 |
|
|
393,327 |
|
|
5.25%, 7/01/19 |
|
|
435 |
|
|
478,365 |
|
|
University of Southern Mississippi, RB, Campus |
|
|
675 |
|
|
726,502 |
|
|
|
|
|
|
|
|
1,598,194 |
|
|
New Hampshire — 1.5% |
|
|
|
|
|
|
|
|
New Hampshire Health & Education Facilities Authority, |
|
|
3,035 |
|
|
3,280,349 |
|
|
New Jersey — 7.2% |
|
|
|
|
|
|
|
|
New Jersey EDA, RB: |
|
|
|
|
|
|
|
|
Cigarette Tax, 5.75%, 6/15/29 |
|
|
5,385 |
|
|
5,245,098 |
|
|
Continental Airlines Inc. Project, AMT, 6.63%, |
|
|
1,000 |
|
|
1,009,750 |
|
|
Continental Airlines Inc. Project, AMT, 6.25%, |
|
|
2,950 |
|
|
2,789,136 |
|
|
New Jersey State Turnpike Authority, RB, Series C |
|
|
3,500 |
|
|
3,648,925 |
|
|
New Jersey Transportation Trust Fund Authority, RB, |
|
|
1,575 |
|
|
1,700,654 |
|
|
Tobacco Settlement Financing Corp. New Jersey, |
|
|
1,740 |
|
|
1,579,781 |
|
|
|
|
|
|
|
|
15,973,344 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
25 |
|
|
|
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniHoldings Fund, Inc. (MHD) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
New York — 5.8% |
|
|
|
|
|
|
|
|
Dutchess County Industrial Development Agency |
|
$ |
1,000 |
|
$ |
989,350 |
|
|
Hudson New York Yards Infrastructure Corp., RB, |
|
|
1,115 |
|
|
1,180,685 |
|
|
Long Island Power Authority, Refunding RB, Series A, |
|
|
1,450 |
|
|
1,596,754 |
|
|
Metropolitan Transportation Authority, Refunding RB: |
|
|
|
|
|
|
|
|
Series B, 5.00%, 11/15/34 |
|
|
1,740 |
|
|
1,834,099 |
|
|
Transportation, Series D, 5.25%, 11/15/40 |
|
|
840 |
|
|
880,622 |
|
|
New York City Industrial Development Agency, RB: |
|
|
|
|
|
|
|
|
British Airways Plc Project, 7.63%, 12/01/32 |
|
|
1,500 |
|
|
1,505,970 |
|
|
Continental Airlines Inc. Project, Mandatory Put |
|
|
725 |
|
|
734,396 |
|
|
Series C, 6.80%, 6/01/28 |
|
|
535 |
|
|
551,788 |
|
|
New York Liberty Development Corp., Refunding RB, |
|
|
850 |
|
|
882,020 |
|
|
Port Authority of New York & New Jersey, RB, JFK |
|
|
|
|
|
|
|
|
6.00%, 12/01/36 |
|
|
900 |
|
|
931,788 |
|
|
6.00%, 12/01/42 |
|
|
875 |
|
|
915,005 |
|
|
State of New York Dormitory Authority, RB, North |
|
|
870 |
|
|
860,735 |
|
|
|
|
|
|
|
|
12,863,212 |
|
|
North Carolina — 0.4% |
|
|
|
|
|
|
|
|
North Carolina Medical Care Commission, RB, Duke |
|
|
970 |
|
|
986,490 |
|
|
Pennsylvania — 5.2% |
|
|
|
|
|
|
|
|
Allegheny County Hospital Development Authority, |
|
|
1,510 |
|
|
1,238,910 |
|
|
Bucks County IDA, RB, Ann’s Choice Inc. Facility, |
|
|
1,700 |
|
|
1,558,288 |
|
|
Pennsylvania Economic Development Financing |
|
|
|
|
|
|
|
|
American Water Co. Project, 6.20%, 4/01/39 |
|
|
2,520 |
|
|
2,794,201 |
|
|
National Gypsum Co., Series B, AMT, 6.13%, |
|
|
3,500 |
|
|
2,937,060 |
|
|
Philadelphia Authority for Industrial Development, RB: |
|
|
|
|
|
|
|
|
Arbor House Inc. Project, Series E, 6.10%, 7/01/33 |
|
|
1,105 |
|
|
1,078,955 |
|
|
Commercial Development, AMT, 7.75%, 12/01/17 |
|
|
725 |
|
|
725,609 |
|
|
Saligman House Project, Series C HUD, 6.10%, |
|
|
1,245 |
|
|
1,215,656 |
|
|
|
|
|
|
|
|
11,548,679 |
|
|
Puerto Rico — 2.6% |
|
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, CAB: |
|
|
|
|
|
|
|
|
First Sub-Series C, 6.53%, 8/01/38 (b) |
|
|
2,975 |
|
|
554,481 |
|
|
Series A, 6.25%, 8/01/35 (b) |
|
|
4,000 |
|
|
914,680 |
|
|
Puerto Rico Sales Tax Financing Corp., Refunding RB, |
|
|
3,860 |
|
|
4,346,630 |
|
|
|
|
|
|
|
|
5,815,791 |
|
|
South Carolina — 1.6% |
|
|
|
|
|
|
|
|
South Carolina State Ports Authority, RB, 5.25%, |
|
|
2,285 |
|
|
2,410,081 |
|
|
South Carolina State Public Service Authority, |
|
|
1,065 |
|
|
1,144,385 |
|
|
|
|
|
|
|
|
3,554,466 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Tennessee — 2.4% |
|
|
|
|
|
|
|
|
Educational Funding of the South Inc., RB, Senior, |
|
$ |
2,685 |
|
$ |
2,688,920 |
|
|
Hardeman County Correctional Facilities Corp. |
|
|
2,685 |
|
|
2,683,523 |
|
|
|
|
|
|
|
|
5,372,443 |
|
|
Texas — 15.0% |
|
|
|
|
|
|
|
|
Brazos River Authority, Refunding RB, TXU Electric Co. |
|
|
1,000 |
|
|
1,000,000 |
|
|
Brazos River Harbor Navigation District, Refunding RB, |
|
|
3,655 |
|
|
3,697,325 |
|
|
Central Texas Regional Mobility Authority, RB, Senior |
|
|
1,480 |
|
|
1,505,130 |
|
|
City of Dallas Texas, Refunding RB, Waterworks & Sewer |
|
|
1,050 |
|
|
1,139,544 |
|
|
City of Houston Texas, RB, Senior Lien, Series A, |
|
|
1,070 |
|
|
1,136,030 |
|
|
City of Houston Texas, Refunding RB, Sub-Lien, |
|
|
|
|
|
|
|
|
5.00%, 7/01/22 |
|
|
1,120 |
|
|
1,182,317 |
|
|
5.00%, 7/01/24 |
|
|
1,000 |
|
|
1,035,210 |
|
|
Harris County Health Facilities Development Corp., |
|
|
1,910 |
|
|
2,143,020 |
|
|
Harris County Texas Metropolitan Transit Authority, |
|
|
2,355 |
|
|
2,515,493 |
|
|
La Vernia Higher Education Finance Corp., RB, KIPP Inc., |
|
|
450 |
|
|
476,964 |
|
|
Matagorda County Hospital District Texas, RB (FHA), |
|
|
1,675 |
|
|
1,687,345 |
|
|
North Texas Tollway Authority, RB: |
|
|
|
|
|
|
|
|
CAB, Special Projects System, Series B, 7.55%, |
|
|
1,400 |
|
|
276,248 |
|
|
Toll, Second Tier, Series F, 6.13%, 1/01/31 |
|
|
4,190 |
|
|
4,389,025 |
|
|
Sabine River Authority Texas, Refunding RB, TXU |
|
|
250 |
|
|
250,000 |
|
|
San Antonio Energy Acquisition Public Facility Corp., |
|
|
|
|
|
|
|
|
5.50%, 8/01/24 |
|
|
1,100 |
|
|
1,149,192 |
|
|
5.50%, 8/01/25 |
|
|
1,120 |
|
|
1,167,174 |
|
|
Texas Private Activity Bond Surface Transportation Corp., |
|
|
|
|
|
|
|
|
LBJ Infrastructure Group LLC, LBJ Freeway Managed |
|
|
2,990 |
|
|
3,214,519 |
|
|
NTE Mobility Partners LLC, North Tarrant Express |
|
|
2,000 |
|
|
2,134,060 |
|
|
Texas State Public Finance Authority, Refunding ERB, |
|
|
875 |
|
|
829,010 |
|
|
Texas State Turnpike Authority, RB, First Tier, Series A |
|
|
2,660 |
|
|
2,652,233 |
|
|
|
|
|
|
|
|
33,579,839 |
|
|
US Virgin Islands — 1.5% |
|
|
|
|
|
|
|
|
United States Virgin Islands, Refunding RB, Senior |
|
|
3,460 |
|
|
3,303,366 |
|
|
Utah — 1.1% |
|
|
|
|
|
|
|
|
City of Riverton Utah, RB, IHC Health Services Inc., |
|
|
2,525 |
|
|
2,558,961 |
|
|
Vermont — 1.1% |
|
|
|
|
|
|
|
|
Vermont Educational & Health Buildings Financing |
|
|
2,370 |
|
|
2,363,103 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
26 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniHoldings Fund, Inc. (MHD) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Washington — 1.2% |
|
|
|
|
|
|
|
|
Seattle Housing Authority Washington, HRB, |
|
$ |
1,255 |
|
$ |
1,198,537 |
|
|
Washington Health Care Facilities Authority, RB, Swedish |
|
|
1,375 |
|
|
1,515,154 |
|
|
|
|
|
|
|
|
2,713,691 |
|
|
Wisconsin — 4.4% |
|
|
|
|
|
|
|
|
State of Wisconsin, Refunding RB, Series A, 6.00%, |
|
|
4,980 |
|
|
5,571,973 |
|
|
Wisconsin Health & Educational Facilities Authority, RB: |
|
|
|
|
|
|
|
|
Ascension Health Senior Credit Group, 5.00%, |
|
|
1,710 |
|
|
1,767,114 |
|
|
New Castle Place Project, Series A, 7.00%, |
|
|
825 |
|
|
655,000 |
|
|
SynergyHealth Inc., 6.00%, 11/15/32 |
|
|
1,755 |
|
|
1,789,802 |
|
|
|
|
|
|
|
|
9,783,889 |
|
|
Wyoming — 0.1% |
|
|
|
|
|
|
|
|
Wyoming Municipal Power Agency, RB, Series A, |
|
|
210 |
|
|
214,681 |
|
|
Total Municipal Bonds — 117.4% |
|
|
|
|
|
261,879,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
|
|
|
|
|
|
|
California — 7.9% |
|
|
|
|
|
|
|
|
Bay Area Toll Authority, Refunding RB, San Francisco |
|
|
2,270 |
|
|
2,458,837 |
|
|
California Educational Facilities Authority, RB, University |
|
|
1,845 |
|
|
1,993,504 |
|
|
Los Angeles Community College District California, GO, |
|
|
1,620 |
|
|
1,699,833 |
|
|
San Diego Community College District California, GO, |
|
|
748 |
|
|
814,726 |
|
|
San Francisco City & County Public Utilities Commission, |
|
|
6,600 |
|
|
6,891,786 |
|
|
Sequoia Union High School District California, GO, |
|
|
3,494 |
|
|
3,692,434 |
|
|
|
|
|
|
|
|
17,551,120 |
|
|
Colorado — 2.6% |
|
|
|
|
|
|
|
|
Colorado Health Facilities Authority, RB, Catholic |
|
|
|
|
|
|
|
|
Series C-3, 5.10%, 10/01/41 |
|
|
2,580 |
|
|
2,614,133 |
|
|
Series C-7, 5.00%, 9/01/36 |
|
|
1,650 |
|
|
1,671,912 |
|
|
Colorado Health Facilities Authority, Refunding RB, |
|
|
1,490 |
|
|
1,560,603 |
|
|
|
|
|
|
|
|
5,846,648 |
|
|
Connecticut — 3.0% |
|
|
|
|
|
|
|
|
Connecticut State Health & Educational Facility |
|
|
|
|
|
|
|
|
Series T-1, 4.70%, 7/01/29 |
|
|
3,180 |
|
|
3,390,961 |
|
|
Series X-3, 4.85%, 7/01/37 |
|
|
3,270 |
|
|
3,436,607 |
|
|
|
|
|
|
|
|
6,827,568 |
|
|
Georgia — 1.1% |
|
|
|
|
|
|
|
|
Private Colleges & Universities Authority, Refunding RB, |
|
|
2,259 |
|
|
2,373,781 |
|
|
Massachusetts — 2.4% |
|
|
|
|
|
|
|
|
Massachusetts School Building Authority, RB, Series A |
|
|
4,994 |
|
|
5,327,809 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
Par |
|
Value |
|
||
|
New Hampshire — 0.7% |
|
|
|
|
|
|
|
|
New Hampshire Health & Education Facilities Authority, |
|
$ |
1,409 |
|
$ |
1,558,501 |
|
|
New York — 4.5% |
|
|
|
|
|
|
|
|
New York City Municipal Water & Sewer Finance |
|
|
1,110 |
|
|
1,222,701 |
|
|
New York State Dormitory Authority, ERB, Series F, |
|
|
4,034 |
|
|
4,175,783 |
|
|
Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), |
|
|
4,240 |
|
|
4,600,828 |
|
|
|
|
|
|
|
|
9,999,312 |
|
|
North Carolina — 0.5% |
|
|
|
|
|
|
|
|
North Carolina Capital Facilities Finance Agency, |
|
|
1,080 |
|
|
1,141,830 |
|
|
Ohio — 4.5% |
|
|
|
|
|
|
|
|
State of Ohio, Refunding RB, Cleveland Clinic Health, |
|
|
9,650 |
|
|
10,042,948 |
|
|
Tennessee — 1.0% |
|
|
|
|
|
|
|
|
Shelby County Health Educational & Housing Facilities |
|
|
2,250 |
|
|
2,334,127 |
|
|
Texas — 2.1% |
|
|
|
|
|
|
|
|
County of Harris Texas, RB, Senior Lien, Toll Road, |
|
|
4,620 |
|
|
4,819,399 |
|
|
Virginia — 2.8% |
|
|
|
|
|
|
|
|
University of Virginia, Refunding RB, General, 5.00%, |
|
|
3,750 |
|
|
4,038,748 |
|
|
Virginia Small Business Financing Authority, Refunding |
|
|
2,094 |
|
|
2,163,222 |
|
|
|
|
|
|
|
|
6,201,970 |
|
|
Washington — 0.9% |
|
|
|
|
|
|
|
|
Central Puget Sound Regional Transit Authority, RB, |
|
|
1,860 |
|
|
1,962,037 |
|
|
Wisconsin — 1.8% |
|
|
|
|
|
|
|
|
Wisconsin Health & Educational Facilities Authority, |
|
|
3,959 |
|
|
4,004,980 |
|
|
Total
Municipal Bonds Transferred to |
|
|
|
|
|
79,992,030 |
|
|
Total
Long-Term Investments |
|
|
|
|
|
341,871,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities |
|
Shares |
|
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.01% (f)(g) |
|
|
6,651,301 |
|
|
6,651,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Par |
|
|
|
|
|
|
Michigan Finance Authority, RB, SAN, Detroit Schools, |
|
$ |
2,255 |
|
|
2,255,000 |
|
|
Total
Short-Term Securities |
|
|
|
|
|
8,906,301 |
|
|
Total Investments (Cost — $340,613,766*) — 157.2% |
|
|
|
|
|
350,777,847 |
|
|
Liabilities in Excess of Other Assets — (0.4)% |
|
|
|
|
|
(926,964 |
) |
|
Liability
for TOB Trust Certificates, Including |
|
|
|
|
|
(43,056,636 |
) |
|
AMPS, at Redemption Value — (37.5)% |
|
|
|
|
|
(83,706,722 |
) |
|
Net Assets Applicable to Common Shares — 100.0% |
|
|
|
|
$ |
223,087,525 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
27 |
|
|
|
|
|
|
|
Schedule of Investments (concluded) |
BlackRock MuniHoldings Fund, Inc. (MHD) |
|
|
|
|
* |
The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows: |
|
|
|
|
|
|
|
Aggregate cost |
|
$ |
296,691,167 |
|
|
Gross unrealized appreciation |
|
$ |
15,526,152 |
|
|
Gross unrealized depreciation |
|
|
(4,481,392 |
) |
|
Net unrealized appreciation |
|
$ |
11,044,760 |
|
|
|
|
|
(a) |
Security exempt from registration pursuant to Rule 144a under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
|
|
|
|
(b) |
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
|
|
|
|
(c) |
When-issued security. Unsettled when-issued transactions were as follows: |
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Value |
|
Unrealized |
|
||
|
Barclays Capital |
|
$ |
3,363,822 |
|
$ |
10,679 |
|
|
Jefferies & Co. |
|
$ |
1,235,346 |
|
$ |
14,818 |
|
|
Wells Fargo Bank, Inc. |
|
$ |
1,546,870 |
|
$ |
35,536 |
|
|
|
|
|
(d) |
Variable rate security. Rate shown is as of report date. |
|
|
|
|
(e) |
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
(f) |
Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate |
|
Shares |
|
Net |
|
Shares |
|
Income |
|
||||
|
FFI Institutional Tax-Exempt Fund |
|
|
6,564,515 |
|
|
86,786 |
|
|
6,651,301 |
|
$ |
1,438 |
|
|
|
|
|
(g) |
Represents the current yield as of report date. |
|
|
|
|
• |
Financial futures contracts sold as of October 31, 2011 were as follows: |
|
|
|
|
|
|
|
|
Contracts |
Issue |
Exchange |
Expiration |
Notional |
Unrealized |
|
45 |
10-year US |
Chicago Board |
December |
$5,807,813 |
$50,602 |
|
|
|
|
|
• |
Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows: |
|
|
|
|
|
|
|
• |
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
|
• |
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
|
|
|
|
|
|
• |
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
|
|
|
|
|
|
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements. |
|
|
|
|
|
|
|
The following tables summarize the inputs used as of October 31, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term |
|
|
— |
|
$ |
341,871,546 |
|
|
— |
|
$ |
341,871,546 |
|
|
Short-Term |
|
$ |
6,651,301 |
|
|
2,255,000 |
|
|
— |
|
|
8,906,301 |
|
|
Total |
|
$ |
6,651,301 |
|
$ |
344,126,546 |
|
|
— |
|
$ |
350,777,847 |
|
|
|
|
|
|
|
1 |
See above schedule of investments for values in each state or political subdivision. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Derivative Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate |
|
$ |
50,602 |
|
|
— |
|
|
— |
|
$ |
50,602 |
|
|
|
|
|
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
28 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments October 31, 2011 (Unaudited) |
BlackRock MuniHoldings Fund II, Inc. (MUH) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Alabama — 1.9% |
|
|
|
|
|
|
|
|
County of Jefferson Alabama, RB, Series A, 5.00%, |
|
$ |
3,450 |
|
$ |
3,178,899 |
|
|
Alaska — 0.6% |
|
|
|
|
|
|
|
|
Northern Tobacco Securitization Corp., RB, Asset-Backed, |
|
|
1,660 |
|
|
1,047,161 |
|
|
Arizona — 2.6% |
|
|
|
|
|
|
|
|
Phoenix IDA Arizona, Refunding RB, America West |
|
|
2,060 |
|
|
1,760,270 |
|
|
Pima County IDA, RB, Arizona Charter Schools Project, |
|
|
925 |
|
|
885,660 |
|
|
Salt River Project Agricultural Improvement & Power |
|
|
1,220 |
|
|
1,279,231 |
|
|
Show Low Improvement District, Special Assessment |
|
|
470 |
|
|
471,057 |
|
|
|
|
|
|
|
|
4,396,218 |
|
|
Arkansas — 0.4% |
|
|
|
|
|
|
|
|
County of Little River Arkansas, Refunding RB, |
|
|
830 |
|
|
823,335 |
|
|
California — 19.6% |
|
|
|
|
|
|
|
|
Benicia Unified School District, GO, CAB, Refunding, |
|
|
2,000 |
|
|
1,331,500 |
|
|
California Health Facilities Financing Authority, |
|
|
|
|
|
|
|
|
St. Joseph Health System, Series A, 5.75%, 7/01/39 |
|
|
1,110 |
|
|
1,155,943 |
|
|
Sutter Health, Series B, 6.00%, 8/15/42 |
|
|
1,585 |
|
|
1,728,252 |
|
|
California State Public Works Board, RB, Various |
|
|
600 |
|
|
659,454 |
|
|
California Statewide Communities Development |
|
|
1,090 |
|
|
1,070,151 |
|
|
Los Angeles Department of Airports, RB, Series A, |
|
|
400 |
|
|
426,892 |
|
|
Los Angeles Department of Airports, Refunding RB, |
|
|
2,975 |
|
|
3,131,158 |
|
|
Poway Unified School District, Special Tax Bonds, |
|
|
1,750 |
|
|
1,751,803 |
|
|
San Diego Unified School District California, GO, CAB, |
|
|
2,525 |
|
|
929,099 |
|
|
San Marino Unified School District California, GO, |
|
|
|
|
|
|
|
|
5.51%, 7/01/17 |
|
|
1,820 |
|
|
1,530,565 |
|
|
5.56%, 7/01/18 |
|
|
1,945 |
|
|
1,518,773 |
|
|
5.61%, 7/01/19 |
|
|
2,070 |
|
|
1,522,195 |
|
|
State of California, GO, Various Purpose: |
|
|
|
|
|
|
|
|
6.00%, 3/01/33 |
|
|
1,265 |
|
|
1,423,631 |
|
|
6.50%, 4/01/33 |
|
|
7,325 |
|
|
8,541,023 |
|
|
5.00%, 10/01/41 |
|
|
1,535 |
|
|
1,530,211 |
|
|
University of California, RB, Limited Project, Series B, |
|
|
4,605 |
|
|
4,631,156 |
|
|
|
|
|
|
|
|
32,881,806 |
|
|
Colorado — 2.0% |
|
|
|
|
|
|
|
|
Colorado Educational & Cultural Facilities Authority, RB, |
|
|
1,055 |
|
|
988,599 |
|
|
Plaza Metropolitan District No. 1 Colorado, Tax Allocation |
|
|
860 |
|
|
803,653 |
|
|
Regional Transportation District, COP, Series A, |
|
|
510 |
|
|
540,717 |
|
|
University of Colorado, RB, Series A, 5.38%, 6/01/38 |
|
|
920 |
|
|
987,077 |
|
|
|
|
|
|
|
|
3,320,046 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Connecticut — 1.6% |
|
|
|
|
|
|
|
|
Connecticut State Health & Educational Facility |
|
|
|
|
|
|
|
|
Ascension Health Senior Credit, 5.00%, 11/15/40 |
|
$ |
685 |
|
$ |
703,687 |
|
|
Wesleyan University, 5.00%, 7/01/35 |
|
|
1,875 |
|
|
2,005,406 |
|
|
|
|
|
|
|
|
2,709,093 |
|
|
Delaware — 1.5% |
|
|
|
|
|
|
|
|
County of Sussex Delaware, RB, NRG Energy, Inc., |
|
|
570 |
|
|
573,335 |
|
|
Delaware State EDA, RB, Exempt Facilities, Indian |
|
|
2,050 |
|
|
1,880,014 |
|
|
|
|
|
|
|
|
2,453,349 |
|
|
District of Columbia — 2.2% |
|
|
|
|
|
|
|
|
Metropolitan Washington Airports Authority, RB: |
|
|
|
|
|
|
|
|
CAB, Second Senior Lien, Series B (AGC), |
|
|
10,170 |
|
|
2,600,673 |
|
|
First Senior Lien, Series A, 5.00%, 10/01/39 |
|
|
255 |
|
|
264,091 |
|
|
First Senior Lien, Series A, 5.25%, 10/01/44 |
|
|
745 |
|
|
774,293 |
|
|
|
|
|
|
|
|
3,639,057 |
|
|
Florida — 7.6% |
|
|
|
|
|
|
|
|
Ballantrae Community Development District, Special |
|
|
1,535 |
|
|
1,464,467 |
|
|
City of Clearwater Florida, RB, Series A, 5.25%, |
|
|
1,725 |
|
|
1,856,566 |
|
|
County of Broward Florida, Water & Sewer Utility, RB, |
|
|
545 |
|
|
585,112 |
|
|
County of Miami-Dade Florida, RB: |
|
|
|
|
|
|
|
|
CAB, Sub-Series A (NPFGC), 5.24%, 10/01/37 (a) |
|
|
1,765 |
|
|
311,028 |
|
|
Water & Sewer System, 5.00%, 10/01/34 |
|
|
2,845 |
|
|
2,971,802 |
|
|
County of Miami-Dade Florida, Refunding RB, Miami |
|
|
330 |
|
|
339,279 |
|
|
Greater Orlando Aviation Authority Florida, RB, Special |
|
|
1,515 |
|
|
1,424,357 |
|
|
Hillsborough County IDA, RB, National Gypsum Co., |
|
|
1,380 |
|
|
1,229,856 |
|
|
Mid-Bay Bridge Authority, RB, Series A, 7.25%, |
|
|
1,135 |
|
|
1,187,982 |
|
|
Palm Coast Park Community Development District, |
|
|
490 |
|
|
299,508 |
|
|
Preserve at Wilderness Lake Community Development |
|
|
1,185 |
|
|
1,061,748 |
|
|
|
|
|
|
|
|
12,731,705 |
|
|
Georgia — 1.3% |
|
|
|
|
|
|
|
|
DeKalb Private Hospital Authority, Refunding RB, |
|
|
420 |
|
|
431,630 |
|
|
Metropolitan Atlanta Rapid Transit Authority, Sales Tax |
|
|
1,740 |
|
|
1,814,106 |
|
|
|
|
|
|
|
|
2,245,736 |
|
|
Guam — 0.7% |
|
|
|
|
|
|
|
|
Territory of Guam, GO, Series A: |
|
|
|
|
|
|
|
|
6.00%, 11/15/19 |
|
|
320 |
|
|
325,699 |
|
|
6.75%, 11/15/29 |
|
|
455 |
|
|
469,073 |
|
|
7.00%, 11/15/39 |
|
|
275 |
|
|
284,955 |
|
|
|
|
|
|
|
|
1,079,727 |
|
|
Hawaii — 0.4% |
|
|
|
|
|
|
|
|
State of Hawaii Harbor System, Refunding RB, Series A, |
|
|
680 |
|
|
714,728 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
29 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniHoldings Fund II, Inc. (MUH) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Idaho — 1.2% |
|
|
|
|
|
|
|
|
Power County Industrial Development Corp., RB, |
|
$ |
2,000 |
|
$ |
2,001,620 |
|
|
Illinois — 9.2% |
|
|
|
|
|
|
|
|
City of Chicago Illinois, Board of Education, GO, |
|
|
|
|
|
|
|
|
5.50%, 12/01/39 |
|
|
1,060 |
|
|
1,123,070 |
|
|
5.00%, 12/01/41 |
|
|
350 |
|
|
348,905 |
|
|
City of Chicago Illinois, RB, O’Hare International Airport, |
|
|
2,500 |
|
|
2,728,525 |
|
|
City of Chicago Illinois, Refunding RB, O’Hare |
|
|
2,935 |
|
|
3,376,483 |
|
|
City of Chicago Illinois, Special Assessment Bonds, |
|
|
1,000 |
|
|
1,024,140 |
|
|
City of Chicago Illinois, Transit Authority, RB, Sales Tax |
|
|
530 |
|
|
545,873 |
|
|
Illinois Finance Authority, Refunding RB, Central DuPage |
|
|
800 |
|
|
828,240 |
|
|
Metropolitan Pier & Exposition Authority, Refunding RB, |
|
|
|
|
|
|
|
|
CAB, Series B, 6.25%, 6/15/47 (a) |
|
|
9,555 |
|
|
1,081,722 |
|
|
Series B, 5.00%, 6/15/50 |
|
|
1,585 |
|
|
1,545,216 |
|
|
Series B-2, 5.00%, 6/15/50 |
|
|
1,260 |
|
|
1,226,320 |
|
|
Railsplitter Tobacco Settlement Authority, RB: |
|
|
|
|
|
|
|
|
5.50%, 6/01/23 |
|
|
675 |
|
|
712,516 |
|
|
6.00%, 6/01/28 |
|
|
500 |
|
|
519,910 |
|
|
State of Illinois, RB, Build Illinois, Series B, 5.25%, |
|
|
315 |
|
|
329,673 |
|
|
|
|
|
|
|
|
15,390,593 |
|
|
Indiana — 2.2% |
|
|
|
|
|
|
|
|
Indiana Finance Authority, RB: |
|
|
|
|
|
|
|
|
Sisters of St. Francis Health, 5.25%, 11/01/39 |
|
|
420 |
|
|
427,963 |
|
|
Wastewater Utility, First Lien, CWA Authority Project, |
|
|
790 |
|
|
842,812 |
|
|
Indiana Finance Authority, Refunding RB, Parkview |
|
|
1,660 |
|
|
1,738,136 |
|
|
Indiana Municipal Power Agency, RB, Series B, |
|
|
565 |
|
|
616,748 |
|
|
|
|
|
|
|
|
3,625,659 |
|
|
Kansas — 1.2% |
|
|
|
|
|
|
|
|
Kansas Development Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
Adventist Health, 5.75%, 11/15/38 |
|
|
1,105 |
|
|
1,192,648 |
|
|
Sisters of Leavenworth, Series A, 5.00%, 1/01/40 |
|
|
785 |
|
|
793,337 |
|
|
|
|
|
|
|
|
1,985,985 |
|
|
Kentucky — 0.3% |
|
|
|
|
|
|
|
|
Kentucky Economic Development Finance Authority, |
|
|
510 |
|
|
532,731 |
|
|
Louisiana — 2.0% |
|
|
|
|
|
|
|
|
East Baton Rouge Sewerage Commission, RB, Series A, |
|
|
420 |
|
|
444,600 |
|
|
Louisiana Local Government Environmental Facilities & |
|
|
2,500 |
|
|
2,608,775 |
|
|
New Orleans Aviation Board, Refunding RB, Passenger |
|
|
310 |
|
|
315,955 |
|
|
|
|
|
|
|
|
3,369,330 |
|
|
Maine — 0.1% |
|
|
|
|
|
|
|
|
Maine Health & Higher Educational Facilities Authority, |
|
|
150 |
|
|
152,376 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Maryland — 1.1% |
|
|
|
|
|
|
|
|
Maryland EDC, RB, Transportation Facilities Project, |
|
$ |
220 |
|
$ |
217,664 |
|
|
Maryland EDC, Refunding RB, CNX Marine |
|
|
415 |
|
|
416,643 |
|
|
Maryland Health & Higher Educational Facilities |
|
|
1,095 |
|
|
1,138,220 |
|
|
|
|
|
|
|
|
1,772,527 |
|
|
Massachusetts — 5.7% |
|
|
|
|
|
|
|
|
Massachusetts Development Finance Agency, RB, |
|
|
|
|
|
|
|
|
5.75%, 6/20/22 |
|
|
600 |
|
|
648,294 |
|
|
6.00%, 6/20/44 |
|
|
1,500 |
|
|
1,604,415 |
|
|
Massachusetts Development Finance Agency, |
|
|
845 |
|
|
886,887 |
|
|
Massachusetts Health & Educational Facilities |
|
|
910 |
|
|
928,519 |
|
|
Massachusetts HFA, RB, M/F Housing, Series A, AMT, |
|
|
2,100 |
|
|
1,985,886 |
|
|
Massachusetts HFA, Refunding HRB, Series F, AMT, |
|
|
1,080 |
|
|
1,107,745 |
|
|
Massachusetts School Building Authority, RB, Sales |
|
|
2,280 |
|
|
2,434,766 |
|
|
|
|
|
|
|
|
9,596,512 |
|
|
Michigan — 2.2% |
|
|
|
|
|
|
|
|
City of Detroit Michigan Sewage Disposal System, RB, |
|
|
460 |
|
|
545,325 |
|
|
Flint Hospital Building Authority Michigan, Refunding |
|
|
905 |
|
|
905,054 |
|
|
Kalamazoo Hospital Finance Authority, Refunding RB, |
|
|
690 |
|
|
694,182 |
|
|
Michigan State Hospital Finance Authority, Refunding |
|
|
1,520 |
|
|
1,553,288 |
|
|
|
|
|
|
|
|
3,697,849 |
|
|
Minnesota — 1.0% |
|
|
|
|
|
|
|
|
City of Minneapolis Minnesota, Refunding RB, Fairview |
|
|
1,540 |
|
|
1,704,949 |
|
|
New Hampshire — 1.0% |
|
|
|
|
|
|
|
|
New Hampshire Health & Education Facilities Authority, |
|
|
1,530 |
|
|
1,653,685 |
|
|
New Jersey — 5.7% |
|
|
|
|
|
|
|
|
New Jersey EDA, RB: |
|
|
|
|
|
|
|
|
Cigarette Tax, 5.75%, 6/15/29 |
|
|
3,025 |
|
|
2,946,410 |
|
|
Continental Airlines Inc. Project, AMT, 6.63%, |
|
|
2,000 |
|
|
2,019,500 |
|
|
New Jersey State Turnpike Authority, RB, Series C |
|
|
2,500 |
|
|
2,606,375 |
|
|
New Jersey Transportation Trust Fund Authority, RB, |
|
|
1,025 |
|
|
1,106,775 |
|
|
Tobacco Settlement Financing Corp. New Jersey, |
|
|
905 |
|
|
821,668 |
|
|
|
|
|
|
|
|
9,500,728 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
30 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniHoldings Fund II, Inc. (MUH) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
New York — 7.3% |
|
|
|
|
|
|
|
|
Dutchess County Industrial Development Agency |
|
$ |
875 |
|
$ |
865,681 |
|
|
Hudson New York Yards Infrastructure Corp., RB, |
|
|
810 |
|
|
857,717 |
|
|
Long Island Power Authority, Refunding RB, Series A, |
|
|
1,050 |
|
|
1,156,270 |
|
|
Metropolitan Transportation Authority, Refunding RB: |
|
|
|
|
|
|
|
|
Series B, 5.00%, 11/15/34 |
|
|
1,270 |
|
|
1,338,682 |
|
|
Transportation, Series D, 5.25%, 11/15/40 |
|
|
610 |
|
|
639,500 |
|
|
New York City Industrial Development Agency, RB: |
|
|
|
|
|
|
|
|
Continental Airlines Inc., Project, AMT, 8.00%, |
|
|
340 |
|
|
344,991 |
|
|
Continental Airlines Inc. Project, Mandatory Put |
|
|
525 |
|
|
531,804 |
|
|
Series C, 6.80%, 6/01/28 |
|
|
415 |
|
|
428,023 |
|
|
New York City Transitional Finance Authority, RB, |
|
|
3,300 |
|
|
3,521,760 |
|
|
New York Liberty Development Corp., Refunding RB, |
|
|
615 |
|
|
638,167 |
|
|
Port Authority of New York & New Jersey, RB, JFK |
|
|
|
|
|
|
|
|
6.00%, 12/01/36 |
|
|
650 |
|
|
672,958 |
|
|
6.00%, 12/01/42 |
|
|
630 |
|
|
658,804 |
|
|
State of New York Dormitory Authority, RB, North Shore |
|
|
630 |
|
|
623,290 |
|
|
|
|
|
|
|
|
12,277,647 |
|
|
North Carolina — 0.4% |
|
|
|
|
|
|
|
|
North Carolina Medical Care Commission, RB, Duke |
|
|
705 |
|
|
716,985 |
|
|
Pennsylvania — 3.5% |
|
|
|
|
|
|
|
|
Allegheny County Hospital Development Authority, |
|
|
1,095 |
|
|
898,415 |
|
|
Pennsylvania Economic Development Financing |
|
|
|
|
|
|
|
|
American Water Co. Project, 6.20%, 4/01/39 |
|
|
1,830 |
|
|
2,029,122 |
|
|
National Gypsum Co., Series A, AMT, 6.25%, |
|
|
2,750 |
|
|
2,338,572 |
|
|
Philadelphia Authority for Industrial Development, |
|
|
540 |
|
|
540,454 |
|
|
|
|
|
|
|
|
5,806,563 |
|
|
Puerto Rico — 3.5% |
|
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB: |
|
|
|
|
|
|
|
|
CAB, Series A, 6.42%, 8/01/35 (a) |
|
|
10,000 |
|
|
2,286,700 |
|
|
First Sub-Series A, 6.50%, 8/01/44 |
|
|
2,790 |
|
|
3,141,736 |
|
|
Puerto Rico Sales Tax Financing Corp., Refunding RB, |
|
|
2,145 |
|
|
399,785 |
|
|
|
|
|
|
|
|
5,828,221 |
|
|
South Carolina — 1.5% |
|
|
|
|
|
|
|
|
South Carolina State Ports Authority, RB, 5.25%, |
|
|
1,650 |
|
|
1,740,321 |
|
|
South Carolina State Public Service Authority, |
|
|
770 |
|
|
827,396 |
|
|
|
|
|
|
|
|
2,567,717 |
|
|
Tennessee — 1.3% |
|
|
|
|
|
|
|
|
Hardeman County Correctional Facilities Corp. |
|
|
2,200 |
|
|
2,158,728 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Texas — 12.5% |
|
|
|
|
|
|
|
|
Brazos River Authority, Refunding RB, TXU Electric Co. |
|
$ |
500 |
|
$ |
500,000 |
|
|
Brazos River Harbor Navigation District, Refunding RB, |
|
|
2,500 |
|
|
2,528,950 |
|
|
Central Texas Regional Mobility Authority, RB, Senior |
|
|
1,070 |
|
|
1,088,169 |
|
|
City of Dallas Texas, Refunding RB, Waterworks & |
|
|
760 |
|
|
824,813 |
|
|
City of Houston Texas, Refunding RB, Senior Lien, |
|
|
535 |
|
|
568,015 |
|
|
Harris County Health Facilities Development Corp., |
|
|
1,380 |
|
|
1,548,360 |
|
|
Harris County Texas Metropolitan Transit Authority, RB, |
|
|
1,710 |
|
|
1,826,536 |
|
|
La Vernia Higher Education Finance Corp., RB, KIPP Inc., |
|
|
320 |
|
|
339,174 |
|
|
Matagorda County Hospital District Texas, RB (FHA), |
|
|
1,325 |
|
|
1,334,765 |
|
|
North Texas Tollway Authority, RB, CAB, Special |
|
|
1,015 |
|
|
200,280 |
|
|
North Texas Tollway Authority, Refunding RB, Toll, |
|
|
3,020 |
|
|
3,163,450 |
|
|
Sabine River Authority Texas, Refunding RB, TXU |
|
|
500 |
|
|
500,000 |
|
|
Texas Private Activity Bond Surface Transportation |
|
|
|
|
|
|
|
|
LBJ Infrastructure Group LLC, LBJ Freeway |
|
|
2,165 |
|
|
2,327,570 |
|
|
NTE Mobility Partners LLC, North Tarrant Express |
|
|
1,500 |
|
|
1,600,545 |
|
|
Texas State Public Finance Authority, Refunding ERB, |
|
|
625 |
|
|
592,150 |
|
|
Texas State Turnpike Authority, RB, First Tier, Series A |
|
|
1,990 |
|
|
1,984,189 |
|
|
|
|
|
|
|
|
20,926,966 |
|
|
US Virgin Islands — 1.5% |
|
|
|
|
|
|
|
|
United States Virgin Islands, Government Refinery, |
|
|
2,680 |
|
|
2,558,676 |
|
|
Utah — 0.9% |
|
|
|
|
|
|
|
|
City of Riverton Utah, RB, IHC Health Services Inc., |
|
|
1,400 |
|
|
1,418,830 |
|
|
Vermont — 0.6% |
|
|
|
|
|
|
|
|
Vermont Educational & Health Buildings Financing |
|
|
1,000 |
|
|
930,340 |
|
|
Washington — 1.2% |
|
|
|
|
|
|
|
|
Seattle Housing Authority Washington, HRB, |
|
|
930 |
|
|
888,159 |
|
|
Washington Health Care Facilities Authority, RB, |
|
|
990 |
|
|
1,090,911 |
|
|
|
|
|
|
|
|
1,979,070 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
31 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniHoldings Fund II, Inc. (MUH) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Wisconsin — 4.0% |
|
|
|
|
|
|
|
|
State of Wisconsin, Refunding RB, Series A, 6.00%, |
|
$ |
3,620 |
|
$ |
4,050,309 |
|
|
Wisconsin Health & Educational Facilities Authority, RB: |
|
|
|
|
|
|
|
|
Ascension Health Senior Credit Group, |
|
|
1,235 |
|
|
1,276,249 |
|
|
SynergyHealth, Inc., 6.00%, 11/15/32 |
|
|
1,360 |
|
|
1,386,969 |
|
|
|
|
|
|
|
|
6,713,527 |
|
|
Total Municipal Bonds — 113.5% |
|
|
|
|
|
190,088,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal
Bonds Transferred to |
|
|
|
|
|
|
|
|
California — 9.5% |
|
|
|
|
|
|
|
|
Bay Area Toll Authority, Refunding RB, San Francisco |
|
|
1,640 |
|
|
1,776,428 |
|
|
California Educational Facilities Authority, RB, |
|
|
1,335 |
|
|
1,442,454 |
|
|
Los Angeles Community College District California, GO, |
|
|
1,170 |
|
|
1,227,657 |
|
|
San Diego Community College District California, GO, |
|
|
553 |
|
|
602,897 |
|
|
San Francisco City & County Public Utilities |
|
|
4,770 |
|
|
4,980,882 |
|
|
Sequoia Union High School District California, GO, |
|
|
5,519 |
|
|
5,831,827 |
|
|
|
|
|
|
|
|
15,862,145 |
|
|
Colorado — 2.5% |
|
|
|
|
|
|
|
|
Colorado Health Facilities Authority, RB, Catholic Health: |
|
|
|
|
|
|
|
|
(AGM), Series C-7, 5.00%, 9/01/36 |
|
|
1,200 |
|
|
1,215,936 |
|
|
(FSA), Series C-3, 5.10%, 10/01/41 |
|
|
1,870 |
|
|
1,894,740 |
|
|
Colorado Health Facilities Authority, Refunding RB, |
|
|
1,080 |
|
|
1,131,175 |
|
|
|
|
|
|
|
|
4,241,851 |
|
|
Connecticut — 3.0% |
|
|
|
|
|
|
|
|
Connecticut State Health & Educational Facility |
|
|
|
|
|
|
|
|
Series T-1, 4.70%, 7/01/29 |
|
|
2,300 |
|
|
2,452,582 |
|
|
Series X-3, 4.85%, 7/01/37 |
|
|
2,370 |
|
|
2,490,752 |
|
|
|
|
|
|
|
|
4,943,334 |
|
|
Georgia — 1.0% |
|
|
|
|
|
|
|
|
Private Colleges & Universities Authority, Refunding RB, |
|
|
1,649 |
|
|
1,733,070 |
|
|
Massachusetts — 1.9% |
|
|
|
|
|
|
|
|
Massachusetts School Building Authority, RB, Series A |
|
|
2,999 |
|
|
3,199,885 |
|
|
New Hampshire — 0.7% |
|
|
|
|
|
|
|
|
New Hampshire Health & Education Facilities Authority, |
|
|
1,019 |
|
|
1,127,426 |
|
|
New York — 4.4% |
|
|
|
|
|
|
|
|
New York City Municipal Water & Sewer Finance |
|
|
810 |
|
|
892,242 |
|
|
New York State Dormitory Authority, ERB, Series F, |
|
|
2,910 |
|
|
3,011,531 |
|
|
Sales Tax Asset Receivable Corp., RB, Series A |
|
|
3,200 |
|
|
3,472,323 |
|
|
|
|
|
|
|
|
7,376,096 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
Par |
|
Value |
|
||
|
North Carolina — 0.5% |
|
|
|
|
|
|
|
|
North Carolina Capital Facilities Finance Agency, |
|
$ |
800 |
|
$ |
845,800 |
|
|
Ohio — 4.3% |
|
|
|
|
|
|
|
|
State of Ohio, Refunding RB, Cleveland Clinic Health, |
|
|
6,980 |
|
|
7,264,226 |
|
|
Tennessee — 1.6% |
|
|
|
|
|
|
|
|
Shelby County Health Educational & Housing Facilities |
|
|
2,500 |
|
|
2,593,475 |
|
|
Texas — 2.1% |
|
|
|
|
|
|
|
|
County of Harris Texas, RB, Senior Lien, Toll Road, |
|
|
3,360 |
|
|
3,505,018 |
|
|
Virginia — 2.7% |
|
|
|
|
|
|
|
|
University of Virginia, Refunding RB, General, 5.00%, |
|
|
2,730 |
|
|
2,940,208 |
|
|
Virginia Small Business Financing Authority, Refunding |
|
|
1,553 |
|
|
1,603,583 |
|
|
|
|
|
|
|
|
4,543,791 |
|
|
Washington — 0.9% |
|
|
|
|
|
|
|
|
Central Puget Sound Regional Transit Authority, RB, |
|
|
1,365 |
|
|
1,439,882 |
|
|
Wisconsin — 1.7% |
|
|
|
|
|
|
|
|
Wisconsin Health & Educational Facilities Authority, |
|
|
2,859 |
|
|
2,892,485 |
|
|
Total
Municipal Bonds Transferred to |
|
|
|
|
|
61,568,484 |
|
|
Total
Long-Term Investments |
|
|
|
|
|
251,657,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities |
|
Shares |
|
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.01% (e)(f) |
|
|
3,626,155 |
|
|
3,626,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Par |
|
|
|
|
|
|
Michigan Finance Authority, RB, SAN, Detroit Schools, |
|
$ |
1,630 |
|
|
1,630,000 |
|
|
Total
Short-Term Securities |
|
|
|
|
|
5,256,155 |
|
|
Total Investments (Cost — $246,831,506*) — 153.5% |
|
|
|
|
|
256,913,313 |
|
|
Liabilities in Excess of Other Assets — (07)% |
|
|
|
|
|
(1,128,437 |
) |
|
Liability
for TOB Trust Certificates, Including |
|
|
|
|
|
(33,313,485 |
) |
|
AMPS, at Redemption Value — (32.9)% |
|
|
|
|
|
(55,051,207 |
) |
|
Net Assets Applicable to Common Shares — 100.0% |
|
|
|
|
$ |
167,420,184 |
|
|
|
|
|
|
|
|
* |
The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows: |
|
|
|
|
|
|
|
|
|
|
Aggregate cost |
|
|
|
|
$ |
212,780,639 |
|
|
Gross unrealized appreciation |
|
|
|
|
$ |
12,891,397 |
|
|
Gross unrealized depreciation |
|
|
|
|
|
(2,060,398 |
) |
|
Net unrealized appreciation |
|
|
|
|
$ |
10,830,999 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
|
|
|
|
|
|
Schedule of Investments (concluded) |
BlackRock MuniHoldings Fund II, Inc. (MUH) |
|
|
|
|
(a) |
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
|
|
|
|
(b) |
When-issued security. Unsettled when-issued transactions were as follows: |
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Value |
|
Unrealized
|
|
||
|
Barclays Capital |
|
$ |
2,434,766 |
|
$ |
7,729 |
|
|
Jeffries & Co. |
|
$ |
1,471,975 |
|
$ |
34,792 |
|
|
Wells Fargo Bank, Inc. |
|
$ |
545,873 |
|
$ |
1,712 |
|
|
|
|
|
(c) |
Variable rate security. Rate shown is as of report date. |
|
|
|
|
(d) |
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
(e) |
Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate |
|
Shares |
|
Net |
|
Shares |
|
Income |
|
||||
|
FFI Institutional Tax-Exempt Fund |
|
|
3,999,689 |
|
|
(373,534 |
) |
|
3,626,155 |
|
$ |
365 |
|
|
|
|
|
(f) |
Represents the current yield as of report date. |
|
|
|
|
• |
Financial futures contracts sold as of October 31, 2011 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts |
|
Issue |
|
Exchange |
|
Expiration |
|
Notional |
|
Unrealized |
|
|||||
|
31 |
|
10-Year US Treasury Note |
|
Chicago Board of Trade |
|
December 2011 |
|
$ |
4,000,938 |
|
$ |
35,363 |
|
|||
|
|
|
|
|
• |
Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
|
|
|
|
|
|
|
• |
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
|
• |
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
|
|
|
|
|
|
• |
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of October 31, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term |
|
|
— |
|
$ |
251,657,158 |
|
|
— |
|
$ |
251,657,158 |
|
|
Short-Term |
|
$ |
3,626,155 |
|
|
1,630,000 |
|
|
— |
|
|
5,256,155 |
|
|
Total |
|
$ |
3,626,155 |
|
$ |
253,287,158 |
|
|
— |
|
$ |
256,913,313 |
|
|
|
|
|
|
|
1 |
See above Schedule of Investments for values in each state or political subdivision. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Derivative
Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate |
|
$ |
35,363 |
|
|
— |
|
|
— |
|
$ |
35,363 |
|
|
|
|
|
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
|
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
33 |
|
|
|
|
|
|
|
Schedule of Investments October 31, 2011 (Unaudited) |
BlackRock MuniHoldings Quality Fund, Inc. (MUS) |
|
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Alabama — 2.6% |
|
|
|
|
|
|
|
|
Birmingham Special Care Facilities Financing Authority, |
|
$ |
2,330 |
|
$ |
2,553,284 |
|
|
County of Jefferson Alabama, RB, Series A, 5.50%, |
|
|
2,170 |
|
|
2,056,487 |
|
|
|
|
|
|
|
|
4,609,771 |
|
|
California — 20.7% |
|
|
|
|
|
|
|
|
Bay Area Toll Authority, Refunding RB, San Francisco |
|
|
5,500 |
|
|
5,956,555 |
|
|
California Educational Facilities Authority, RB, University |
|
|
2,895 |
|
|
3,128,019 |
|
|
California Health Facilities Financing Authority, |
|
|
1,730 |
|
|
1,886,357 |
|
|
Central Unified School District, GO, Election of 2008, |
|
|
1,325 |
|
|
1,438,672 |
|
|
City of San Jose California, ARB, Series A-1, AMT: |
|
|
|
|
|
|
|
|
5.50%, 3/01/30 |
|
|
2,400 |
|
|
2,436,552 |
|
|
5.75%, 3/01/34 |
|
|
2,180 |
|
|
2,275,789 |
|
|
City of Sunnyvale California, Refunding RB, 5.25%, |
|
|
1,605 |
|
|
1,736,401 |
|
|
City of Vista California, COP, Refunding, Community |
|
|
1,665 |
|
|
1,622,842 |
|
|
County of Sacramento California, RB, Senior Series A |
|
|
2,100 |
|
|
2,196,285 |
|
|
Los Angeles Community College District California, GO, |
|
|
1,500 |
|
|
1,640,670 |
|
|
Los Angeles Department of Water & Power, RB, Power |
|
|
1,575 |
|
|
1,682,478 |
|
|
Oceanside Unified School District California, GO, |
|
|
1,825 |
|
|
1,925,521 |
|
|
Redondo Beach Unified School District, GO, Election |
|
|
1,335 |
|
|
1,472,585 |
|
|
San Bernardino Community College District, GO, |
|
|
1,250 |
|
|
1,432,338 |
|
|
San Pablo Joint Powers Financing Authority California, |
|
|
|
|
|
|
|
|
5.66%, 12/01/24 |
|
|
2,635 |
|
|
1,160,797 |
|
|
5.66%, 12/01/25 |
|
|
2,355 |
|
|
958,226 |
|
|
7.14%, 12/01/26 |
|
|
2,355 |
|
|
889,554 |
|
|
Santa Ana Unified School District, GO, (NPFGC), 5.00%, |
|
|
470 |
|
|
471,852 |
|
|
Ventura County Community College District, GO, |
|
|
1,850 |
|
|
2,022,919 |
|
|
|
|
|
|
|
|
36,334,412 |
|
|
Colorado — 1.5% |
|
|
|
|
|
|
|
|
Colorado Health Facilities Authority, RB, Hospital, |
|
|
1,900 |
|
|
2,134,669 |
|
|
Regional Transportation District, COP, Series A, 5.00%, |
|
|
455 |
|
|
482,336 |
|
|
|
|
|
|
|
|
2,617,005 |
|
|
District of Columbia — 1.2% |
|
|
|
|
|
|
|
|
District of Columbia Water & Sewer Authority, Public |
|
|
2,000 |
|
|
2,184,680 |
|
|
Florida — 9.8% |
|
|
|
|
|
|
|
|
City of Gainesville Florida, Refunding RB, Series C, |
|
|
2,500 |
|
|
2,693,475 |
|
|
County of Lee Florida, Airport Refunding RB, Series A, |
|
|
1,500 |
|
|
1,491,540 |
|
|
Jacksonville Port Authority, RB, AMT (AGC), 6.00%, |
|
|
2,215 |
|
|
2,243,463 |
|
|
Orange County Health Facilities Authority, RB, The |
|
|
1,465 |
|
|
1,501,244 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Florida (concluded) |
|
|
|
|
|
|
|
|
Orange County School Board, COP, Series A (AGC), |
|
$ |
4,645 |
|
$ |
4,923,932 |
|
|
Tohopekaliga Water Authority, Refunding RB, Series A, |
|
|
3,995 |
|
|
4,301,976 |
|
|
|
|
|
|
|
|
17,155,630 |
|
|
Illinois — 18.3% |
|
|
|
|
|
|
|
|
City of Chicago Illinois, Board of Education, GO, Series A: |
|
|
|
|
|
|
|
|
5.50%, 12/01/39 |
|
|
1,890 |
|
|
2,002,455 |
|
|
5.00%, 12/01/41 |
|
|
3,125 |
|
|
3,115,219 |
|
|
Refunding, Chicago School Reform Board (NPFGC), |
|
|
1,200 |
|
|
1,288,164 |
|
|
City of Chicago Illinois, RB: |
|
|
|
|
|
|
|
|
General Third Lien, Series A, 5.75%, 1/01/39 |
|
|
1,145 |
|
|
1,249,664 |
|
|
General Third Lien, Series C (AGC), 5.25%, |
|
|
1,255 |
|
|
1,318,654 |
|
|
Series A (AGM), 5.00%, 1/01/33 |
|
|
8,000 |
|
|
8,195,520 |
|
|
City of Chicago Illinois, Refunding RB, O’Hare |
|
|
5,225 |
|
|
6,010,944 |
|
|
City of Chicago Illinois, Refunding RB, Second Lien |
|
|
1,310 |
|
|
1,439,900 |
|
|
City of Chicago Illinois, Transit Authority, RB: |
|
|
|
|
|
|
|
|
Federal Transit Administration Section 5309, |
|
|
2,000 |
|
|
2,256,360 |
|
|
Sales Tax Receipts, 5.25%, 12/01/36 |
|
|
635 |
|
|
656,577 |
|
|
Railsplitter Tobacco Settlement Authority, RB: |
|
|
|
|
|
|
|
|
5.50%, 6/01/23 |
|
|
1,405 |
|
|
1,483,090 |
|
|
6.00%, 6/01/28 |
|
|
400 |
|
|
415,928 |
|
|
State of Illinois, RB, Build Illinois, Series B, 5.25%, |
|
|
2,500 |
|
|
2,676,325 |
|
|
|
|
|
|
|
|
32,108,800 |
|
|
Indiana — 8.6% |
|
|
|
|
|
|
|
|
Indiana Finance Authority, Wastewater Utility, RB, |
|
|
2,720 |
|
|
2,940,429 |
|
|
Indiana Municipal Power Agency, RB, Series A (NPFGC), |
|
|
5,000 |
|
|
5,104,550 |
|
|
Indianapolis Local Public Improvement, Bond Bank, RB: |
|
|
|
|
|
|
|
|
Series 2011F, 5.25%, 2/01/36 |
|
|
3,055 |
|
|
3,305,876 |
|
|
Series 2011K, 5.00%, 6/01/25 |
|
|
2,140 |
|
|
2,277,324 |
|
|
Indianapolis Local Public Improvement Bond Bank, |
|
|
1,430 |
|
|
1,539,352 |
|
|
|
|
|
|
|
|
15,167,531 |
|
|
Iowa — 0.6% |
|
|
|
|
|
|
|
|
Iowa Finance Authority, Refunding RB, Iowa Health |
|
|
1,080 |
|
|
1,133,892 |
|
|
Kentucky — 0.8% |
|
|
|
|
|
|
|
|
Kentucky Economic Development Finance Authority, RB, |
|
|
320 |
|
|
338,298 |
|
|
Kentucky State Property & Buildings Commission, |
|
|
1,000 |
|
|
1,065,620 |
|
|
|
|
|
|
|
|
1,403,918 |
|
|
Massachusetts — 3.3% |
|
|
|
|
|
|
|
|
Massachusetts HFA, RB, Rental Mortgage, Series C, AMT |
|
|
2,440 |
|
|
2,440,439 |
|
|
Massachusetts School Building Authority, RB, Sales Tax |
|
|
3,065 |
|
|
3,273,052 |
|
|
|
|
|
|
|
|
5,713,491 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
34 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniHoldings Quality Fund, Inc. (MUS) |
|
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Michigan — 12.6% |
|
|
|
|
|
|
|
|
City of Detroit Michigan, RB: |
|
|
|
|
|
|
|
|
Second Lien, Series B (NPFGC), 5.50%, 7/01/29 |
|
$ |
2,410 |
|
$ |
2,526,620 |
|
|
Senior Lien, Series B (AGM), 7.50%, 7/01/33 |
|
|
2,000 |
|
|
2,370,980 |
|
|
City of Detroit Michigan, Refunding RB: |
|
|
|
|
|
|
|
|
Second Lien, Series C (BHAC), 5.75%, 7/01/27 |
|
|
1,580 |
|
|
1,694,439 |
|
|
Second Lien, Series E (BHAC), 5.75%, 7/01/31 |
|
|
3,240 |
|
|
3,472,729 |
|
|
Senior Lien, Series C-1 (AGM), 7.00%, 7/01/27 |
|
|
4,810 |
|
|
5,629,624 |
|
|
Senior Lien, Series C-2 (BHAC), 5.25%, 7/01/29 |
|
|
1,910 |
|
|
1,996,065 |
|
|
Michigan State Building Authority, Refunding RB, |
|
|
|
|
|
|
|
|
5.25%, 10/15/24 |
|
|
875 |
|
|
965,370 |
|
|
5.25%, 10/15/25 |
|
|
455 |
|
|
499,203 |
|
|
Michigan Strategic Fund, Refunding RB, Detroit |
|
|
750 |
|
|
751,417 |
|
|
Royal Oak Hospital Finance Authority Michigan, |
|
|
1,910 |
|
|
2,265,375 |
|
|
|
|
|
|
|
|
22,171,822 |
|
|
Minnesota — 0.8% |
|
|
|
|
|
|
|
|
City of Minneapolis Minnesota, Fairview Health Services, |
|
|
1,325 |
|
|
1,485,882 |
|
|
Nevada — 6.5% |
|
|
|
|
|
|
|
|
Clark County Water Reclamation District, GO, Series A, |
|
|
2,000 |
|
|
2,137,680 |
|
|
County of Clark Nevada, RB: |
|
|
|
|
|
|
|
|
Las Vegas-McCarran International Airport, Series A |
|
|
2,510 |
|
|
2,616,399 |
|
|
Las Vegas-McCarran International Airport, Series A-1 |
|
|
1,750 |
|
|
1,810,043 |
|
|
Subordinate Lien, Series A-2 (NPFGC), 5.00%, |
|
|
4,750 |
|
|
4,782,632 |
|
|
|
|
|
|
|
|
11,346,754 |
|
|
New Jersey — 7.4% |
|
|
|
|
|
|
|
|
New Jersey EDA, RB, Motor Vehicle Surcharge, Series A |
|
|
6,700 |
|
|
6,937,649 |
|
|
New Jersey Health Care Facilities Financing Authority, |
|
|
2,100 |
|
|
2,200,065 |
|
|
New Jersey Transportation Trust Fund Authority, RB, |
|
|
3,500 |
|
|
3,835,685 |
|
|
|
|
|
|
|
|
12,973,399 |
|
|
New York — 4.1% |
|
|
|
|
|
|
|
|
Hudson New York Yards Infrastructure Corp., Senior RB, |
|
|
565 |
|
|
598,284 |
|
|
New York City Municipal Water & Sewer Finance |
|
|
|
|
|
|
|
|
Fiscal 2009, 5.25%, 6/15/40 |
|
|
3,410 |
|
|
3,678,231 |
|
|
Second General Resolution, 5.38%, 6/15/43 |
|
|
1,305 |
|
|
1,434,678 |
|
|
New York City Transitional Finance Authority, RB, |
|
|
1,400 |
|
|
1,494,080 |
|
|
|
|
|
|
|
|
7,205,273 |
|
|
Pennsylvania — 2.3% |
|
|
|
|
|
|
|
|
Delaware River Port Authority, RB, Series D (AGC), 5.00%, |
|
|
1,720 |
|
|
1,776,932 |
|
|
Philadelphia Hospitals and Higher Education Facilities |
|
|
2,230 |
|
|
2,307,649 |
|
|
|
|
|
|
|
|
4,084,581 |
|
|
Puerto Rico — 1.3% |
|
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, First |
|
|
2,115 |
|
|
2,344,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Texas — 23.2% |
|
|
|
|
|
|
|
|
Austin Community College District, RB, Educational |
|
$ |
2,500 |
|
$ |
2,643,700 |
|
|
City of Austin Texas, Refunding RB, Series A (AGM): |
|
|
|
|
|
|
|
|
5.00%, 11/15/28 |
|
|
1,080 |
|
|
1,167,188 |
|
|
5.00%, 11/15/29 |
|
|
1,365 |
|
|
1,462,311 |
|
|
City of Houston Texas, Refunding RB, Combined First |
|
|
4,000 |
|
|
4,566,480 |
|
|
Clifton Higher Education Finance Corp., Refunding RB, |
|
|
1,840 |
|
|
1,993,714 |
|
|
Dallas Area Rapid Transit, Refunding RB, Senior Lien, |
|
|
3,175 |
|
|
3,403,441 |
|
|
Harris County Cultural Education Facilities Finance Corp., |
|
|
1,200 |
|
|
1,274,112 |
|
|
Harris County Health Facilities Development Corp., |
|
|
600 |
|
|
673,200 |
|
|
Harris County Metropolitan Transit Authority, Transit |
|
|
760 |
|
|
815,009 |
|
|
Lubbock Cooper ISD Texas, GO, School Building (AGC), |
|
|
775 |
|
|
839,581 |
|
|
North Texas Tollway Authority, RB, Special Projects |
|
|
3,150 |
|
|
3,423,987 |
|
|
North Texas Tollway Authority, Refunding RB (NPFGC), |
|
|
|
|
|
|
|
|
5.75%, 1/01/40 |
|
|
4,885 |
|
|
5,090,121 |
|
|
Series A, 5.63%, 1/01/33 |
|
|
6,585 |
|
|
6,885,869 |
|
|
Series B, 5.75%, 1/01/40 |
|
|
6,275 |
|
|
6,538,487 |
|
|
|
|
|
|
|
|
40,777,200 |
|
|
Utah — 1.2% |
|
|
|
|
|
|
|
|
City of Riverton Utah, RB, IHC Health Services Inc., |
|
|
2,000 |
|
|
2,026,900 |
|
|
Virginia — 1.0% |
|
|
|
|
|
|
|
|
Virginia Public School Authority, RB, School Financing, |
|
|
1,500 |
|
|
1,714,365 |
|
|
Washington — 1.5% |
|
|
|
|
|
|
|
|
City of Seattle Washington, Refunding RB, Series A, |
|
|
1,375 |
|
|
1,507,825 |
|
|
State of Washington, GO, Various Purpose, Series B, |
|
|
1,075 |
|
|
1,183,210 |
|
|
|
|
|
|
|
|
2,691,035 |
|
|
West Virginia — 0.6% |
|
|
|
|
|
|
|
|
West Virginia University Board of Governors, RB, |
|
|
1,025 |
|
|
1,096,924 |
|
|
Total Municipal Bonds — 129.9% |
|
|
|
|
|
228,347,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
|
|
|
|
|
|
|
Alabama — 1.2% |
|
|
|
|
|
|
|
|
Mobile Board of Water & Sewer Commissioners, RB |
|
|
2,120 |
|
|
2,182,455 |
|
|
California — 2.6% |
|
|
|
|
|
|
|
|
City of San Jose California, GO, Libraries, Parks, and |
|
|
1,258 |
|
|
1,282,688 |
|
|
Sequoia Union High School District California, GO, |
|
|
3,149 |
|
|
3,327,945 |
|
|
|
|
|
|
|
|
4,610,633 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
35 |
|
|
|
|
|
|
|
Schedule of Investments (concluded) |
BlackRock MuniHoldings Quality Fund, Inc. (MUS) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
Par |
|
Value |
|
||
|
Colorado — 3.2% |
|
|
|
|
|
|
|
|
Colorado Health Facilities Authority, RB, Catholic Health, |
|
$ |
5,610 |
|
$ |
5,684,220 |
|
|
District of Columbia — 0.7% |
|
|
|
|
|
|
|
|
District of Columbia Water & Sewer Authority, Public |
|
|
1,040 |
|
|
1,226,413 |
|
|
Florida — 7.8% |
|
|
|
|
|
|
|
|
City of St. Petersburg Florida, Refunding RB (NPFGC), |
|
|
4,302 |
|
|
4,406,180 |
|
|
County of Miami-Dade Florida, GO, Building Better |
|
|
7,500 |
|
|
8,314,200 |
|
|
Lee County Housing Finance Authority, RB, Multi-County |
|
|
960 |
|
|
1,011,034 |
|
|
|
|
|
|
|
|
13,731,414 |
|
|
Georgia — 2.4% |
|
|
|
|
|
|
|
|
Augusta-Richmond County Georgia, Water & Sewer, |
|
|
4,000 |
|
|
4,236,880 |
|
|
Illinois — 1.5% |
|
|
|
|
|
|
|
|
City of Chicago Illinois, Refunding RB, Second Lien |
|
|
2,509 |
|
|
2,618,104 |
|
|
Kentucky — 0.9% |
|
|
|
|
|
|
|
|
Kentucky State Property & Building Commission, |
|
|
1,406 |
|
|
1,520,976 |
|
|
Massachusetts — 4.9% |
|
|
|
|
|
|
|
|
Massachusetts School Building Authority, RB, Series A |
|
|
8,008 |
|
|
8,543,693 |
|
|
Nevada — 5.6% |
|
|
|
|
|
|
|
|
Clark County Water Reclamation District, GO: |
|
|
|
|
|
|
|
|
Limited Tax, 6.00%, 7/01/38 |
|
|
5,000 |
|
|
5,617,100 |
|
|
Series B, 5.50%, 7/01/29 |
|
|
3,749 |
|
|
4,153,404 |
|
|
|
|
|
|
|
|
9,770,504 |
|
|
New Jersey — 1.4% |
|
|
|
|
|
|
|
|
New Jersey State Housing & Mortgage Finance Agency, |
|
|
2,401 |
|
|
2,497,682 |
|
|
Washington — 2.5% |
|
|
|
|
|
|
|
|
City of Bellevue Washington, GO, Refunding (NPFGC), |
|
|
4,002 |
|
|
4,381,918 |
|
|
Total Municipal Bonds Transferred to |
|
|
|
|
|
61,004,892 |
|
|
Total Long-Term Investments |
|
|
|
|
|
289,352,296 |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
Short-Term Securities |
|
Shares |
|
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.01% (c)(d) |
|
|
11,022,378 |
|
|
11,022,378 |
|
|
Total
Short-Term Securities |
|
|
|
|
|
11,022,378 |
|
|
Total Investments (Cost — $287,648,918*) — 170.9% |
|
|
|
|
|
300,374,674 |
|
|
Liabilities in Excess of Other Assets– (3.4)% |
|
|
|
|
|
(6,003,843 |
) |
|
Liability
for TOB Trust Certificates, Including |
|
|
|
|
|
(31,609,290 |
) |
|
AMPS, at Redemption Value — (49.5)% |
|
|
|
|
|
(87,002,723 |
) |
|
Net Assets Applicable to Common Shares — 100.0% |
|
|
|
|
$ |
175,758,818 |
|
|
|
|
|
* |
The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows: |
|
|
|
|
|
|
|
Aggregate cost |
|
$ |
256,009,533 |
|
|
Gross unrealized appreciation |
|
$ |
13,453,534 |
|
|
Gross unrealized depreciation |
|
|
(683,807 |
) |
|
Net unrealized appreciation |
|
$ |
12,769,727 |
|
|
|
|
|
(a) |
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
|
|
|
|
(b) |
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
(c) |
Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate |
|
Shares |
|
Net |
|
Shares |
|
Income |
|
||||
|
FFI Institutional Tax-Exempt Fund |
|
|
6,952,084 |
|
|
4,070,294 |
|
|
11,022,378 |
|
$ |
1,599 |
|
|
|
|
|
|
(d) |
Represents the current yield as of report date. |
|
|
|
|
|
|
• |
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
|
|
|
|
|
|
|
• |
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
|
• |
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
|
|
|
|
|
|
• |
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments) |
|
|
|
|
|
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements. |
||
|
|
||
|
The following table summarizes the inputs used as of October 31, 2011 in determining the fair valuation of the Fund’s investments: |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term |
|
|
— |
|
$ |
289,352,296 |
|
|
— |
|
$ |
289,352,296 |
|
|
Short-Term |
|
$ |
11,022,378 |
|
|
— |
|
|
— |
|
|
11,022,378 |
|
|
Total |
|
$ |
11,022,378 |
|
$ |
289,352,296 |
|
|
— |
|
$ |
300,374,674 |
|
|
|
|
|
|
|
1 |
See above Schedule of Investments for values in each state or political subdivision. |
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
36 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
|
Schedule of Investments October 31, 2011 (Unaudited) |
BlackRock Muni Intermediate Duration Fund, Inc. (MUI) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Alabama — 2.8% |
|
|
|
|
|
|
|
|
Birmingham Special Care Facilities Financing Authority, |
|
$ |
4,615 |
|
$ |
5,099,067 |
|
|
County of Jefferson Alabama, RB, Series A: |
|
|
|
|
|
|
|
|
5.50%, 1/01/21 |
|
|
5,500 |
|
|
5,233,305 |
|
|
5.25%, 1/01/23 |
|
|
6,500 |
|
|
6,023,940 |
|
|
|
|
|
|
|
|
16,356,312 |
|
|
Arizona — 4.8% |
|
|
|
|
|
|
|
|
City of Tucson Arizona, COP (AGC): |
|
|
|
|
|
|
|
|
4.25%, 7/01/21 |
|
|
1,870 |
|
|
1,986,800 |
|
|
4.25%, 7/01/22 |
|
|
1,895 |
|
|
1,991,721 |
|
|
4.50%, 7/01/24 |
|
|
2,120 |
|
|
2,218,516 |
|
|
City of Tucson Arizona, COP, Refunding (AGC), |
|
|
2,325 |
|
|
2,473,777 |
|
|
Maricopa County IDA Arizona, RB, Charter Schools |
|
|
2,300 |
|
|
1,796,001 |
|
|
Pima County IDA Arizona, RB, Charter Schools Project: |
|
|
|
|
|
|
|
|
Series C, 6.70%, 7/01/21 |
|
|
960 |
|
|
960,096 |
|
|
Series K, 6.38%, 7/01/31 |
|
|
930 |
|
|
852,113 |
|
|
Pima County IDA, Refunding RB, Tucson Electric |
|
|
2,325 |
|
|
2,352,481 |
|
|
Salt River Project Agricultural Improvement & Power |
|
|
4,000 |
|
|
4,414,000 |
|
|
Scottsdale IDA, RB, Scottsdale Healthcare, Series C |
|
|
3,650 |
|
|
3,599,739 |
|
|
State of Arizona, COP, Department of Administration, |
|
|
1,000 |
|
|
1,042,650 |
|
|
University of Arizona, RB, Speed, 5.00%, 8/01/28 |
|
|
3,630 |
|
|
3,845,223 |
|
|
|
|
|
|
|
|
27,533,117 |
|
|
California — 8.0% |
|
|
|
|
|
|
|
|
California Health Facilities Financing Authority, |
|
|
2,135 |
|
|
2,330,288 |
|
|
California HFA, RB, Home Mortgage, Series K, AMT, |
|
|
1,000 |
|
|
943,540 |
|
|
California HFA, Refunding RB, Home Mortgage, Series M, |
|
|
5,490 |
|
|
5,100,814 |
|
|
California Pollution Control Financing Authority, RB, AMT: |
|
|
|
|
|
|
|
|
Republic Services Inc. Project, Series B, Mandatory |
|
|
605 |
|
|
651,549 |
|
|
Waste Management Inc. Project, Series A-2, 5.40%, |
|
|
1,240 |
|
|
1,267,503 |
|
|
California Pollution Control Financing Authority, |
|
|
5,000 |
|
|
5,179,500 |
|
|
City of Sacramento California, Special Tax Bonds, |
|
|
2,990 |
|
|
3,023,010 |
|
|
City of San Jose California, RB, Series A-1, AMT, |
|
|
3,000 |
|
|
3,002,010 |
|
|
Golden State Tobacco Securitization Corp., Refunding |
|
|
5,000 |
|
|
5,236,650 |
|
|
Los Angeles Regional Airports Improvement Corp., |
|
|
1,435 |
|
|
1,380,786 |
|
|
State of California, GO: |
|
|
|
|
|
|
|
|
5.50%, 4/01/28 |
|
|
15 |
|
|
15,753 |
|
|
5.50%, 4/01/28 (b) |
|
|
5,000 |
|
|
5,585,000 |
|
|
Various Purpose, 5.75%, 4/01/31 |
|
|
7,000 |
|
|
7,629,160 |
|
|
Various Purpose, 5.00%, 11/01/32 |
|
|
2,000 |
|
|
2,024,800 |
|
|
Tustin Unified School District, Special Tax Bonds, |
|
|
|
|
|
|
|
|
Series A (AGM), 5.00%, 9/01/32 |
|
|
2,610 |
|
|
2,615,089 |
|
|
|
|
|
|
|
|
45,985,452 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Colorado — 1.1% |
|
|
|
|
|
|
|
|
Plaza Metropolitan District No. 1, Tax Allocation Bonds, |
|
$ |
6,000 |
|
$ |
6,051,840 |
|
|
Connecticut — 0.5% |
|
|
|
|
|
|
|
|
Connecticut State Development Authority, RB, |
|
|
1,160 |
|
|
1,214,381 |
|
|
Connecticut State Health & Educational Facility |
|
|
1,780 |
|
|
1,807,163 |
|
|
|
|
|
|
|
|
3,021,544 |
|
|
Florida — 7.0% |
|
|
|
|
|
|
|
|
Broward County School Board Florida, COP, Series A |
|
|
10,000 |
|
|
10,609,300 |
|
|
County of Lee Florida, Refunding ARB, Series A, AMT: |
|
|
|
|
|
|
|
|
5.50%, 10/01/23 |
|
|
1,000 |
|
|
1,071,440 |
|
|
5.63%, 10/01/26 |
|
|
500 |
|
|
519,990 |
|
|
(AGM), 5.00%, 10/01/27 |
|
|
1,635 |
|
|
1,627,822 |
|
|
County of Miami-Dade Florida, Water & Sewer System, |
|
|
8,000 |
|
|
8,808,720 |
|
|
Greater Orlando Aviation Authority Airport Facilities, |
|
|
|
|
|
|
|
|
5.00%, 10/01/25 |
|
|
1,000 |
|
|
1,039,610 |
|
|
5.00%, 10/01/26 |
|
|
2,935 |
|
|
3,027,541 |
|
|
Highlands County Health Facilities Authority, Refunding |
|
|
35 |
|
|
41,393 |
|
|
Midtown Miami Community Development District, |
|
|
|
|
|
|
|
|
Series A, 6.00%, 5/01/24 |
|
|
3,040 |
|
|
3,042,797 |
|
|
Series B, 6.50%, 5/01/37 |
|
|
1,900 |
|
|
1,906,061 |
|
|
Panther Trace II Community Development District, |
|
|
1,510 |
|
|
1,378,026 |
|
|
Portofino Shores Community Development District, |
|
|
1,085 |
|
|
1,071,003 |
|
|
South Lake County Hospital District, RB, South Lake |
|
|
2,390 |
|
|
2,454,530 |
|
|
Sterling Hill Community Development District, Special |
|
|
160 |
|
|
112,050 |
|
|
University of Florida Research Foundation Inc., RB |
|
|
4,000 |
|
|
3,663,120 |
|
|
|
|
|
|
|
|
40,373,403 |
|
|
Georgia — 1.2% |
|
|
|
|
|
|
|
|
Fulton County Development Authority, Refunding RB, |
|
|
3,000 |
|
|
3,137,370 |
|
|
Medical Center Hospital Authority, Refunding RB, |
|
|
|
|
|
|
|
|
4.00%, 8/01/23 |
|
|
1,500 |
|
|
1,501,575 |
|
|
4.13%, 8/01/24 |
|
|
2,000 |
|
|
1,989,300 |
|
|
|
|
|
|
|
|
6,628,245 |
|
|
Guam — 0.7% |
|
|
|
|
|
|
|
|
Territory of Guam, GO, Series A, 6.00%, 11/15/19 |
|
|
1,530 |
|
|
1,557,249 |
|
|
Territory of Guam, RB, Section 30, Series A, 5.38%, |
|
|
2,620 |
|
|
2,673,894 |
|
|
|
|
|
|
|
|
4,231,143 |
|
|
Hawaii — 0.9% |
|
|
|
|
|
|
|
|
State of Hawaii, ARB, Series A, 5.25%, 7/01/29 |
|
|
5,000 |
|
|
5,318,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
37 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock Muni Intermediate Duration Fund, Inc. (MUI) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Idaho — 0.6% |
|
|
|
|
|
|
|
|
Idaho Health Facilities Authority, RB, St. Luke’s Regional |
|
$ |
3,700 |
|
$ |
3,734,780 |
|
|
Illinois — 8.2% |
|
|
|
|
|
|
|
|
City of Chicago Illinois, ARB, General, Third Lien, |
|
|
8,130 |
|
|
8,518,451 |
|
|
City of Chicago Illinois, Transit Authority, RB, 5.25%, |
|
|
2,000 |
|
|
2,084,180 |
|
|
Du Page & Will Counties Community School District |
|
|
8,650 |
|
|
9,524,256 |
|
|
Du Page County Forest Preservation District, GO, |
|
|
3,000 |
|
|
2,996,880 |
|
|
Railsplitter Tobacco Settlement Authority, RB: |
|
|
|
|
|
|
|
|
5.50%, 6/01/23 |
|
|
3,500 |
|
|
3,694,530 |
|
|
6.25%, 6/01/24 |
|
|
12,750 |
|
|
13,437,607 |
|
|
Village of Hodgkins Illinois, RB, MBM Project, AMT, |
|
|
6,000 |
|
|
6,003,180 |
|
|
Village of Wheeling Illinois, Tax Allocation Bonds, North |
|
|
1,525 |
|
|
1,422,307 |
|
|
|
|
|
|
|
|
47,681,391 |
|
|
Indiana — 3.2% |
|
|
|
|
|
|
|
|
City of Whiting Indiana, RB, BP Products North America, |
|
|
4,800 |
|
|
5,485,968 |
|
|
County of Jasper Indiana, Refunding RB, Northern |
|
|
2,000 |
|
|
2,271,200 |
|
|
Indiana Finance Authority, Wastewater Utility, RB, 5.25%, |
|
|
10,000 |
|
|
10,810,400 |
|
|
|
|
|
|
|
|
18,567,568 |
|
|
Iowa — 1.0% |
|
|
|
|
|
|
|
|
Iowa Higher Education Loan Authority, RB, Private |
|
|
|
|
|
|
|
|
5.25%, 4/01/23 |
|
|
695 |
|
|
778,803 |
|
|
5.25%, 4/01/24 |
|
|
730 |
|
|
807,205 |
|
|
5.25%, 4/01/25 |
|
|
520 |
|
|
569,286 |
|
|
5.25%, 4/01/26 |
|
|
360 |
|
|
390,888 |
|
|
Iowa Higher Education Loan Authority, Refunding RB, |
|
|
|
|
|
|
|
|
5.00%, 9/01/20 |
|
|
1,000 |
|
|
1,044,210 |
|
|
5.00%, 9/01/22 |
|
|
2,315 |
|
|
2,342,872 |
|
|
|
|
|
|
|
|
5,933,264 |
|
|
Kansas — 2.7% |
|
|
|
|
|
|
|
|
City of Dodge City Kansas, RB (AGC), 4.00%, 6/01/24 |
|
|
2,245 |
|
|
2,319,287 |
|
|
Kansas Development Finance Authority, KU Health |
|
|
|
|
|
|
|
|
5.00%, 3/01/26 |
|
|
3,220 |
|
|
3,285,752 |
|
|
5.00%, 3/01/27 |
|
|
3,905 |
|
|
3,955,179 |
|
|
Kansas Development Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
Adventist Health, 5.00%, 11/15/23 |
|
|
1,500 |
|
|
1,638,870 |
|
|
Adventist/Sunbelt, Series D, 5.00%, 11/15/24 |
|
|
1,000 |
|
|
1,063,640 |
|
|
Sisters of Leavenworth, Series A, 4.00%, 1/01/22 |
|
|
3,425 |
|
|
3,487,027 |
|
|
|
|
|
|
|
|
15,749,755 |
|
|
Kentucky — 3.1% |
|
|
|
|
|
|
|
|
Kentucky Economic Development Finance Authority, |
|
|
8,650 |
|
|
8,844,452 |
|
|
Kentucky State Property & Buildings Commission, |
|
|
8,000 |
|
|
8,827,200 |
|
|
|
|
|
|
|
|
17,671,652 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Louisiana — 3.5% |
|
|
|
|
|
|
|
|
Jefferson Parish Hospital Service District No. 1, |
|
$ |
3,000 |
|
$ |
3,064,740 |
|
|
Louisiana Public Facilities Authority, RB: |
|
|
|
|
|
|
|
|
Nineteenth Judicial District Court (FGIC), 5.50%, |
|
|
2,000 |
|
|
2,088,660 |
|
|
University of New Orleans Research & Technology |
|
|
5,000 |
|
|
5,231,650 |
|
|
Louisiana Public Facilities Authority, Refunding RB, |
|
|
5,000 |
|
|
5,115,100 |
|
|
New Orleans Aviation Board, Refunding GARB, |
|
|
850 |
|
|
979,548 |
|
|
Port of New Orleans Louisiana, Refunding RB, |
|
|
3,500 |
|
|
3,501,050 |
|
|
|
|
|
|
|
|
19,980,748 |
|
|
Maine — 0.3% |
|
|
|
|
|
|
|
|
Portland Housing Development Corp., Refunding RB, |
|
|
1,965 |
|
|
1,929,296 |
|
|
Maryland — 0.5% |
|
|
|
|
|
|
|
|
Maryland EDC, RB, Transportation Facilities Project, |
|
|
1,750 |
|
|
1,762,723 |
|
|
Maryland EDC, Refunding RB, CNX Marine Terminals Inc., |
|
|
790 |
|
|
793,128 |
|
|
Maryland Industrial Development Financing Authority, |
|
|
500 |
|
|
502,030 |
|
|
|
|
|
|
|
|
3,057,881 |
|
|
Massachusetts — 0.7% |
|
|
|
|
|
|
|
|
Massachusetts Development Finance Agency, RB, |
|
|
|
|
|
|
|
|
5.35%, 12/01/15 |
|
|
1,210 |
|
|
1,210,992 |
|
|
5.50%, 12/01/19 |
|
|
2,000 |
|
|
2,001,620 |
|
|
Massachusetts Health & Educational Facilities Authority, |
|
|
1,060 |
|
|
1,031,794 |
|
|
|
|
|
|
|
|
4,244,406 |
|
|
Michigan — 4.0% |
|
|
|
|
|
|
|
|
City of Detroit Michigan, Water Supply System, |
|
|
4,235 |
|
|
4,564,483 |
|
|
Kalamazoo Hospital Finance Authority, Refunding RB, |
|
|
2,120 |
|
|
1,977,175 |
|
|
Manistee Area Public Schools, GO, Refunding (Q-SBLF), |
|
|
1,000 |
|
|
1,059,730 |
|
|
Michigan State Building Authority, Refunding RB, |
|
|
2,500 |
|
|
2,730,000 |
|
|
Michigan State Hospital Finance Authority, Refunding |
|
|
4,900 |
|
|
5,097,225 |
|
|
Wayne County Airport Authority, RB, Detroit Metropolitan |
|
|
7,665 |
|
|
7,945,156 |
|
|
|
|
|
|
|
|
23,373,769 |
|
|
Minnesota — 1.2% |
|
|
|
|
|
|
|
|
City of St. Cloud Minnesota, RB, Centracare Health |
|
|
2,300 |
|
|
2,401,775 |
|
|
Minnesota State Municipal Power Agency, RB, Series A, |
|
|
2,000 |
|
|
2,095,640 |
|
|
University of Minnesota, RB, Biomed Science Research |
|
|
2,500 |
|
|
2,654,400 |
|
|
|
|
|
|
|
|
7,151,815 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
38 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock Muni Intermediate Duration Fund, Inc. (MUI) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
|
Par |
|
|
Value |
|
|
Mississippi — 1.6% |
|
|
|
|
|
|
|
|
Mississippi Business Finance Corp., Refunding RB, |
|
|
|
|
|
|
|
|
5.88%, 4/01/22 |
|
$ |
5,000 |
|
$ |
5,025,000 |
|
|
5.90%, 5/01/22 |
|
|
4,410 |
|
|
4,427,640 |
|
|
|
|
|
|
|
|
9,452,640 |
|
|
Missouri — 1.4% |
|
|
|
|
|
|
|
|
Missouri State Health & Educational Facilities Authority, |
|
|
8,125 |
|
|
8,182,931 |
|
|
Montana — 0.5% |
|
|
|
|
|
|
|
|
Montana Facility Finance Authority, Refunding RB, |
|
|
2,625 |
|
|
2,813,764 |
|
|
Nebraska — 1.3% |
|
|
|
|
|
|
|
|
Douglas County School District No. 17 Nebraska, |
|
|
|
|
|
|
|
|
2.00%, 6/15/24 |
|
|
3,390 |
|
|
2,977,708 |
|
|
2.00%, 6/15/25 |
|
|
4,380 |
|
|
3,740,038 |
|
|
Lancaster County Hospital Authority No. 1, RB, |
|
|
1,000 |
|
|
1,024,360 |
|
|
|
|
|
|
|
|
7,742,106 |
|
|
Nevada — 1.1% |
|
|
|
|
|
|
|
|
County of Clark Nevada, Special Assessment Bonds, |
|
|
2,080 |
|
|
2,129,670 |
|
|
County of Humboldt Nevada, Refunding RB, Idaho |
|
|
3,800 |
|
|
4,058,666 |
|
|
|
|
|
|
|
|
6,188,336 |
|
|
New Jersey — 14.9% |
|
|
|
|
|
|
|
|
Essex County Improvement Authority, RB, Newark |
|
|
2,000 |
|
|
2,107,080 |
|
|
Garden State Preservation Trust, RB, Election of 2005, |
|
|
|
|
|
|
|
|
5.80%, 11/01/21 |
|
|
3,635 |
|
|
4,204,096 |
|
|
5.80%, 11/01/23 |
|
|
5,050 |
|
|
5,824,114 |
|
|
New Jersey EDA, RB: |
|
|
|
|
|
|
|
|
Cigarette Tax, 5.75%, 6/15/29 |
|
|
8,310 |
|
|
8,094,106 |
|
|
Continental Airlines Inc. Project, AMT, 6.63%, |
|
|
5,540 |
|
|
5,594,015 |
|
|
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, |
|
|
17,900 |
|
|
18,534,913 |
|
|
New Jersey EDA, Refunding RB: |
|
|
|
|
|
|
|
|
New Jersey American Water Co., Series E, AMT, |
|
|
3,000 |
|
|
3,082,080 |
|
|
School Facilities Construction, Series AA, 4.25%, |
|
|
3,850 |
|
|
3,883,071 |
|
|
School Facilities Construction, Series EE, 5.00%, |
|
|
3,465 |
|
|
3,782,429 |
|
|
New Jersey Health Care Facilities Financing Authority, |
|
|
635 |
|
|
638,937 |
|
|
New Jersey Higher Education Student Assistance |
|
|
|
|
|
|
|
|
5.50%, 12/01/26 |
|
|
1,665 |
|
|
1,695,886 |
|
|
5.00%, 12/01/27 |
|
|
12,000 |
|
|
12,114,720 |
|
|
New Jersey Higher Education Student Assistance |
|
|
2,400 |
|
|
2,533,056 |
|
|
New Jersey State Housing & Mortgage Finance Agency, |
|
|
4,500 |
|
|
4,596,525 |
|
|
New Jersey Transportation Trust Fund Authority, RB, |
|
|
|
|
|
|
|
|
CAB, Series C (AMBAC), 5.72%, 12/15/25 (f) |
|
|
9,450 |
|
|
4,539,969 |
|
|
Series A, 5.25%, 6/15/24 |
|
|
3,185 |
|
|
3,572,710 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
New Jersey (concluded) |
|
|
|
|
|
|
|
|
South Jersey Port Corp., RB, Marine Terminal, Series O-1 |
|
$ |
1,375 |
|
$ |
1,466,850 |
|
|
|
|
|
|
|
|
86,264,557 |
|
|
New York — 21.9% |
|
|
|
|
|
|
|
|
City of New York, New York, GO: |
|
|
|
|
|
|
|
|
Refunding, Series E, 5.00%, 8/01/27 |
|
|
3,500 |
|
|
3,813,810 |
|
|
Series D1, 5.13%, 12/01/26 |
|
|
4,615 |
|
|
5,028,135 |
|
|
Series E, 5.00%, 8/01/24 |
|
|
4,000 |
|
|
4,496,680 |
|
|
Sub-Series I-1, 5.50%, 4/01/21 |
|
|
5,000 |
|
|
5,965,900 |
|
|
Essex County Industrial Development Agency, Refunding |
|
|
6,300 |
|
|
6,304,977 |
|
|
Hudson New York Yards Infrastructure Corp., RB, |
|
|
2,250 |
|
|
2,382,547 |
|
|
Long Island Power Authority, Refunding RB, Series A, |
|
|
1,475 |
|
|
1,655,230 |
|
|
Metropolitan Transportation Authority, RB: |
|
|
|
|
|
|
|
|
Series A, 5.00%, 11/15/25 |
|
|
1,980 |
|
|
2,084,287 |
|
|
Sub-Series B-1, 5.00%, 11/15/24 |
|
|
2,300 |
|
|
2,631,568 |
|
|
Sub-Series B-4, 5.00%, 11/15/24 |
|
|
1,500 |
|
|
1,710,735 |
|
|
Metropolitan Transportation Authority, Refunding RB, |
|
|
4,000 |
|
|
4,451,200 |
|
|
New York City Industrial Development Agency, RB: |
|
|
|
|
|
|
|
|
Continental Airlines Inc. Project, Mandatory Put |
|
|
3,500 |
|
|
3,545,360 |
|
|
Special Needs Facilities Pooled Program, Series C-1, |
|
|
1,770 |
|
|
1,773,682 |
|
|
New York City Industrial Development Agency, |
|
|
1,740 |
|
|
1,797,229 |
|
|
New York City Transitional Finance Authority, RB: |
|
|
|
|
|
|
|
|
Fiscal 2007, Series S-1 (NPFGC), 5.00%, 7/15/24 |
|
|
500 |
|
|
543,045 |
|
|
Fiscal 2009, Series S-3, 5.00%, 1/15/23 |
|
|
3,560 |
|
|
3,937,431 |
|
|
New York City Trust for Cultural Resources, RB, Carnegie |
|
|
3,750 |
|
|
3,948,450 |
|
|
New York Liberty Development Corp., Refunding RB, |
|
|
3,000 |
|
|
3,016,350 |
|
|
New York State Dormitory Authority, LRB, Municipal |
|
|
6,900 |
|
|
7,248,381 |
|
|
New York State Dormitory Authority, RB: |
|
|
|
|
|
|
|
|
Education, Series D, 5.00%, 3/15/31 |
|
|
4,500 |
|
|
4,744,080 |
|
|
Fordham University, Series A, 5.25%, 7/01/25 |
|
|
900 |
|
|
1,005,480 |
|
|
Mental Health Services Facilities Improvement, |
|
|
4,000 |
|
|
4,435,800 |
|
|
Mount Sinai School of Medicine, Series A (NPFGC), |
|
|
1,000 |
|
|
1,059,400 |
|
|
North Shore-Long Island Jewish Health System, |
|
|
1,495 |
|
|
1,554,546 |
|
|
NYU Hospital Center, Series A, 5.00%, 7/01/22 |
|
|
1,725 |
|
|
1,803,867 |
|
|
NYU Hospital Center, Series A, 5.13%, 7/01/23 |
|
|
1,670 |
|
|
1,741,676 |
|
|
University of Rochester, Series C, 4.00%, 7/01/24 |
|
|
625 |
|
|
636,344 |
|
|
New York State Dormitory Authority, Refunding RB: |
|
|
|
|
|
|
|
|
Mount Sinai Hospital, Series A, 4.25%, 7/01/23 |
|
|
2,225 |
|
|
2,244,179 |
|
|
North Shore-Long Island Jewish Health System, |
|
|
650 |
|
|
700,492 |
|
|
North Shore-Long Island Jewish Health System, |
|
|
2,160 |
|
|
2,305,541 |
|
|
Yeshiva University, 4.00%, 9/01/23 |
|
|
2,860 |
|
|
2,870,782 |
|
|
Yeshiva University, 4.25%, 9/01/24 |
|
|
2,750 |
|
|
2,777,830 |
|
|
New York State Urban Development Corp., Refunding RB, |
|
|
8,000 |
|
|
8,970,240 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
39 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock Muni Intermediate Duration Fund, Inc. (MUI) |
|
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
|
Par |
|
|
Value |
|
|
New York (concluded) |
|
|
|
|
|
|
|
|
Port Authority of New York & New Jersey, RB, JFK |
|
$ |
2,475 |
|
$ |
2,527,445 |
|
|
Port Authority of New York & New Jersey, |
|
|
|
|
|
|
|
|
152nd Series, AMT, 5.00%, 11/01/23 |
|
|
2,500 |
|
|
2,634,550 |
|
|
153rd Series, 5.00%, 7/15/24 |
|
|
2,010 |
|
|
2,225,171 |
|
|
Sales Tax Asset Receivable Corp., RB, Series A (NPFGC), |
|
|
7,070 |
|
|
7,823,662 |
|
|
Tobacco Settlement Financing Corp. New York, RB, |
|
|
5,000 |
|
|
5,332,050 |
|
|
United Nations Development Corp., Refunding RB, |
|
|
2,985 |
|
|
3,104,728 |
|
|
|
|
|
|
|
|
126,832,860 |
|
|
North Carolina — 1.5% |
|
|
|
|
|
|
|
|
City of Charlotte North Carolina, RB, Charlotte Douglas |
|
|
4,000 |
|
|
4,203,160 |
|
|
Gaston County Industrial Facilities & Pollution Control |
|
|
3,105 |
|
|
2,411,467 |
|
|
North Carolina Eastern Municipal Power Agency, |
|
|
1,925 |
|
|
2,043,811 |
|
|
|
|
|
|
|
|
8,658,438 |
|
|
Northern Mariana Islands — 0.0% |
|
|
|
|
|
|
|
|
Commonwealth of the Northern Mariana Islands, GO, |
|
|
150 |
|
|
139,599 |
|
|
Ohio — 0.5% |
|
|
|
|
|
|
|
|
Cincinnati City School District, GO, Refunding, School |
|
|
1,825 |
|
|
2,072,288 |
|
|
City of Cincinnati Ohio, Various Purpose, GO, Series A, |
|
|
900 |
|
|
902,097 |
|
|
|
|
|
|
|
|
2,974,385 |
|
|
Oregon — 1.1% |
|
|
|
|
|
|
|
|
Oregon State Facilities Authority, RB: |
|
|
|
|
|
|
|
|
Lewis & Clark College Project, Series A, 5.00%, |
|
|
4,000 |
|
|
4,240,560 |
|
|
Reed College Project, Series A, 5.00%, 7/01/29 |
|
|
1,835 |
|
|
2,024,721 |
|
|
|
|
|
|
|
|
6,265,281 |
|
|
Pennsylvania — 9.3% |
|
|
|
|
|
|
|
|
City of Philadelphia Pennsylvania, RB, Series A, AMT |
|
|
2,895 |
|
|
3,058,741 |
|
|
City of Philadelphia Pennsylvania, Refunding RB, |
|
|
3,905 |
|
|
4,172,258 |
|
|
City of Pittsburgh Pennsylvania, GO, Refunding RB, |
|
|
9,630 |
|
|
10,713,664 |
|
|
City of Pittsburgh Pennsylvania, GO, Series C (AGM), |
|
|
6,430 |
|
|
7,080,137 |
|
|
County of Allegheny Pennsylvania, GO: |
|
|
|
|
|
|
|
|
Series C-67, 5.00%, 11/01/25 |
|
|
2,700 |
|
|
2,879,442 |
|
|
Series C-67, 5.00%, 11/01/26 |
|
|
2,375 |
|
|
2,514,911 |
|
|
Series C-68, 5.00%, 11/01/25 |
|
|
2,515 |
|
|
2,682,147 |
|
|
Montgomery County IDA Pennsylvania, MRB, |
|
|
3,500 |
|
|
3,221,645 |
|
|
Pennsylvania Economic Development Financing |
|
|
7,710 |
|
|
6,556,507 |
|
|
Pennsylvania Turnpike Commission, RB, Sub-Series B, |
|
|
4,000 |
|
|
4,194,560 |
|
|
South Fork Municipal Authority, Refunding RB, |
|
|
6,225 |
|
|
6,912,116 |
|
|
|
|
|
|
|
|
53,986,128 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
|
Par |
|
|
Value |
|
|
Puerto Rico — 5.6% |
|
|
|
|
|
|
|
|
Puerto Rico Aqueduct & Sewer Authority, RB, Senior |
|
$ |
3,215 |
|
$ |
3,334,630 |
|
|
Puerto Rico Electric Power Authority, RB, Series TT, |
|
|
6,500 |
|
|
6,566,625 |
|
|
Puerto Rico Highway & Transportation Authority, RB |
|
|
3,000 |
|
|
3,441,750 |
|
|
Puerto Rico Highway & Transportation Authority, |
|
|
1,500 |
|
|
1,536,767 |
|
|
Puerto Rico Housing Finance Authority, Refunding RB, |
|
|
11,450 |
|
|
11,865,406 |
|
|
Puerto Rico Industrial Medical & Environmental |
|
|
5,390 |
|
|
3,773,054 |
|
|
Puerto Rico Sales Tax Financing Corp., RB, First |
|
|
1,925 |
|
|
2,017,708 |
|
|
|
|
|
|
|
|
32,535,940 |
|
|
Rhode Island — 0.5% |
|
|
|
|
|
|
|
|
Rhode Island Health & Educational Building Corp., RB, |
|
|
2,500 |
|
|
2,676,175 |
|
|
South Carolina — 0.2% |
|
|
|
|
|
|
|
|
County of Florence South Carolina, RB, McLeod |
|
|
1,000 |
|
|
1,007,960 |
|
|
Tennessee — 2.8% |
|
|
|
|
|
|
|
|
Chattanooga-Hamilton County Hospital Authority, |
|
|
1,620 |
|
|
1,749,487 |
|
|
Johnson City Health & Educational Facilities Board, |
|
|
1,515 |
|
|
1,506,910 |
|
|
Knox County Health Educational & Housing Facilities |
|
|
3,925 |
|
|
4,028,267 |
|
|
Memphis-Shelby County Sports Authority Inc., |
|
|
|
|
|
|
|
|
Series A, 5.00%, 11/01/23 |
|
|
2,695 |
|
|
2,914,373 |
|
|
Series B, 5.00%, 11/01/22 |
|
|
1,000 |
|
|
1,086,640 |
|
|
Shelby County Health Educational & Housing Facilities |
|
|
|
|
|
|
|
|
6.75%, 12/01/18 |
|
|
3,550 |
|
|
3,483,402 |
|
|
7.00%, 12/01/23 |
|
|
1,450 |
|
|
1,388,476 |
|
|
|
|
|
|
|
|
16,157,555 |
|
|
Texas — 4.3% |
|
|
|
|
|
|
|
|
City of Houston Texas, Refunding ARB, Sub-Lien, |
|
|
1,500 |
|
|
1,531,035 |
|
|
Dallas-Fort Worth International Airport Facilities |
|
|
4,000 |
|
|
4,000,320 |
|
|
Dallas-Fort Worth International Airport Facilities |
|
|
3,000 |
|
|
1,680,000 |
|
|
Frisco ISD, GO, Refunding (PSF-GTD), 4.25%, |
|
|
5,500 |
|
|
5,737,985 |
|
|
Grand Prairie ISD, Refunding, GO, 4.00%, 2/15/26 (e) |
|
|
1,500 |
|
|
1,560,390 |
|
|
Gulf Coast IDA, RB, Citgo Petroleum Corp. Project, |
|
|
2,440 |
|
|
2,459,764 |
|
|
Gulf Coast Waste Disposal Authority, Refunding RB, |
|
|
650 |
|
|
668,122 |
|
|
San Jacinto River Authority, RB, Special Project, 5.25%, |
|
|
2,910 |
|
|
3,179,408 |
|
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
40 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock Muni Intermediate Duration Fund, Inc. (MUI) |
|
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Texas (concluded) |
|
|
|
|
|
|
|
|
Socorro ISD, Refunding, School Building, GO: |
|
|
|
|
|
|
|
|
5.00%, 8/15/30 |
|
$ |
1,000 |
|
$ |
1,089,680 |
|
|
5.00%, 8/15/32 |
|
|
2,500 |
|
|
2,697,025 |
|
|
|
|
|
|
|
|
24,603,729 |
|
|
US Virgin Islands — 1.4% |
|
|
|
|
|
|
|
|
United States Virgin Islands, Refunding RB, Senior |
|
|
1,860 |
|
|
1,775,798 |
|
|
Virgin Islands Public Finance Authority, RB, Senior |
|
|
6,750 |
|
|
6,189,412 |
|
|
|
|
|
|
|
|
7,965,210 |
|
|
Virginia — 2.9% |
|
|
|
|
|
|
|
|
James City County EDA, Refunding RB, First Mortgage, |
|
|
|
|
|
|
|
|
5.75%, 3/01/17 |
|
|
3,285 |
|
|
3,290,322 |
|
|
6.00%, 3/01/23 |
|
|
1,150 |
|
|
1,132,279 |
|
|
Roanoke EDA, Refunding RB, Carilion Health System, |
|
|
3,205 |
|
|
3,272,593 |
|
|
Tobacco Settlement Financing Corp. Virginia, RB, |
|
|
7,800 |
|
|
9,048,702 |
|
|
|
|
|
|
|
|
16,743,896 |
|
|
West Virginia — 2.8% |
|
|
|
|
|
|
|
|
West Virginia Hospital Finance Authority, Refunding RB, |
|
|
4,000 |
|
|
4,144,560 |
|
|
West Virginia University, Board of Governors University |
|
|
|
|
|
|
|
|
5.00%, 10/01/29 |
|
|
7,520 |
|
|
8,111,222 |
|
|
5.00%, 10/01/30 |
|
|
3,500 |
|
|
3,781,120 |
|
|
|
|
|
|
|
|
16,036,902 |
|
|
Wisconsin — 0.4% |
|
|
|
|
|
|
|
|
Wisconsin Housing & EDA, RB, Series C, AMT, 4.85%, |
|
|
2,000 |
|
|
2,009,600 |
|
|
Total Municipal Bonds — 132.0% |
|
|
|
|
|
763,813,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
|
|
|
|
|
|
|
California — 4.9% |
|
|
|
|
|
|
|
|
City of San Jose California, GO, Libraries, Parks and |
|
|
3,101 |
|
|
3,160,911 |
|
|
Peralta Community College District, GO, Election of |
|
|
10,140 |
|
|
10,393,297 |
|
|
Sequoia Union High School District California, GO, |
|
|
9,028 |
|
|
9,540,108 |
|
|
Tamalpais Union High School District California, GO, |
|
|
4,875 |
|
|
5,079,945 |
|
|
|
|
|
|
|
|
28,174,261 |
|
|
Illinois — 2.3% |
|
|
|
|
|
|
|
|
McHenry County Conservation District, GO (AGM), |
|
|
12,695 |
|
|
13,482,453 |
|
|
Massachusetts — 1.5% |
|
|
|
|
|
|
|
|
Massachusetts School Building Authority, RB, Series A |
|
|
8,338 |
|
|
8,895,680 |
|
|
Minnesota — 1.9% |
|
|
|
|
|
|
|
|
State of Minnesota, GO, State Various Purpose, Series A, |
|
|
10,525 |
|
|
11,007,114 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
Par |
|
Value |
|
||
|
New Jersey — 2.1% |
|
|
|
|
|
|
|
|
New Jersey Transportation Trust Fund Authority, RB, |
|
$ |
11,120 |
|
$ |
12,057,416 |
|
|
New York — 6.9% |
|
|
|
|
|
|
|
|
City of New York, New York, GO, Sub-Series B-1, 5.25%, |
|
|
8,250 |
|
|
9,427,193 |
|
|
New York City Municipal Water & Sewer Finance |
|
|
8,000 |
|
|
8,331,760 |
|
|
New York State Urban Development Corp., RB, State |
|
|
10,000 |
|
|
10,337,000 |
|
|
Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), |
|
|
11,101 |
|
|
12,044,621 |
|
|
|
|
|
|
|
|
40,140,574 |
|
|
Washington — 2.0% |
|
|
|
|
|
|
|
|
Snohomish County School District No. 15-Edmonds |
|
|
10,000 |
|
|
11,354,400 |
|
|
Total
Municipal Bonds Transferred to |
|
|
|
|
|
125,111,898 |
|
|
Total
Long-Term Investments |
|
|
|
|
|
888,925,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities |
|
Shares |
|
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.01% (h)(i) |
|
|
44,991,356 |
|
|
44,991,356 |
|
|
Total Short-Term
Securities |
|
|
|
|
|
44,991,356 |
|
|
Total Investments (Cost — $904,240,513*) — 161.4% |
|
|
|
|
|
933,916,627 |
|
|
Liabilities in Excess of Other Assets — (0.3)% |
|
|
|
|
|
(1,560,285 |
) |
|
Liability
for TOB Trust Certificates, Including |
|
|
|
|
|
(66,641,383 |
) |
|
VRDP Shares, at Liquidation Value — (49.6)% |
|
|
|
|
|
(287,100,000 |
) |
|
Net Assets Applicable to Common Shares — 100.0% |
|
|
|
|
$ |
578,614,959 |
|
|
|
|
|
|
|
|
* |
The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows: |
|
|
|
|
|
|
|
Aggregate cost |
|
$ |
836,981,975 |
|
|
Gross unrealized appreciation |
|
$ |
37,869,150 |
|
|
Gross unrealized depreciation |
|
|
(7,543,310 |
) |
|
Net unrealized appreciation |
|
$ |
30,325,840 |
|
|
|
|
|
(a) |
Variable rate security. Rate shown is as of report date. |
|
|
|
|
(b) |
US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par. |
|
|
|
|
(c) |
Non-income producing security. |
|
|
|
|
(d) |
Issuer filed for bankruptcy and/or is in default of interest payments. |
|
|
|
|
(e) |
When-issued security. Unsettled when-issued transactions were as follows: |
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Value |
|
Unrealized |
|
||
|
Merrill Lynch, Pierce, Fenner & Smith |
|
$ |
4,203,160 |
|
$ |
3,600 |
|
|
Morgan Keegan & Co. |
|
$ |
7,298,375 |
|
$ |
51,560 |
|
|
Wells Fargo Bank, Inc. |
|
$ |
2,084,180 |
|
$ |
14,660 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
41 |
|
|
|
|
|
|
|
Schedule of Investments (concluded) |
BlackRock Muni Intermediate Duration Fund, Inc. (MUI) |
|
|
|
|
(f) |
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
|
|
|
|
(g) |
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
(h) |
Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2 (a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate |
|
Shares |
|
Net |
|
Shares |
|
Income |
|
||||
|
FFI Institutional Tax-Exempt Fund |
|
|
9,713,431 |
|
|
35,277,925 |
|
|
44,991,356 |
|
$ |
3,136 |
|
|
|
|
|
|
(i) |
Represents the current yield as of report date. |
|
|
|
|
|
|
• |
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
|
|
|
|
|
|
|
• |
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
|
• |
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
|
|
|
|
|
|
• |
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments) |
|
|
|
|
|
|
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements. |
|
|
|
|
|
|
|
The following table summarizes the inputs used as of October 31, 2011 in determining the fair valuation of the Fund’s investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term |
|
|
— |
|
$ |
888,925,271 |
|
|
— |
|
$ |
888,925,271 |
|
|
Short-Term |
|
$ |
44,991,356 |
|
|
— |
|
|
— |
|
|
44,991,356 |
|
|
Total |
|
$ |
44,991,356 |
|
$ |
888,925,271 |
|
|
— |
|
$ |
933,916,627 |
|
|
|
|
|
|
|
1 |
See above schedule of investments for values in each state or political subdivision. |
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
42 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments October 31, 2011 (Unaudited) |
BlackRock MuniVest Fund II, Inc. (MVT) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Alabama — 0.9% |
|
|
|
|
|
|
|
|
Prattville IDB Alabama, RB, International Paper Co. |
|
$ |
3,025 |
|
$ |
2,718,205 |
|
|
Alaska — 1.0% |
|
|
|
|
|
|
|
|
Northern Tobacco Securitization Corp., RB, Asset-Backed, |
|
|
|
|
|
|
|
|
4.63%, 6/01/23 |
|
|
1,860 |
|
|
1,711,349 |
|
|
5.00%, 6/01/46 |
|
|
2,250 |
|
|
1,419,345 |
|
|
|
|
|
|
|
|
3,130,694 |
|
|
Arizona — 1.8% |
|
|
|
|
|
|
|
|
Maricopa County IDA Arizona, RB, Charter Schools |
|
|
1,000 |
|
|
671,130 |
|
|
Pima County IDA, RB, Arizona Charter Schools Project, |
|
|
1,900 |
|
|
1,819,193 |
|
|
Pima County IDA, Refunding RB, Charter Schools II, |
|
|
465 |
|
|
465,083 |
|
|
Salt River Project Agricultural Improvement & Power |
|
|
2,445 |
|
|
2,563,705 |
|
|
|
|
|
|
|
|
5,519,111 |
|
|
Arkansas — 0.5% |
|
|
|
|
|
|
|
|
County of Little River Arkansas, Refunding RB, |
|
|
1,660 |
|
|
1,646,670 |
|
|
California — 12.4% |
|
|
|
|
|
|
|
|
California Health Facilities Financing Authority, |
|
|
|
|
|
|
|
|
St. Joseph Health System, Series A, 5.75%, 7/01/39 |
|
|
2,200 |
|
|
2,291,058 |
|
|
Sutter Health, Series B, 6.00%, 8/15/42 |
|
|
3,170 |
|
|
3,456,504 |
|
|
California State Public Works Board, RB, Various Capital |
|
|
1,185 |
|
|
1,302,422 |
|
|
Los Angeles Department of Airports, RB, Series A, |
|
|
800 |
|
|
853,784 |
|
|
Los Angeles Department of Airports, Refunding RB, |
|
|
5,930 |
|
|
6,241,266 |
|
|
State of California, GO, Various Purpose: |
|
|
|
|
|
|
|
|
6.00%, 3/01/33 |
|
|
2,525 |
|
|
2,841,635 |
|
|
6.50%, 4/01/33 |
|
|
14,925 |
|
|
17,402,699 |
|
|
5.00%, 10/01/41 |
|
|
3,050 |
|
|
3,040,484 |
|
|
|
|
|
|
|
|
37,429,852 |
|
|
Colorado — 2.1% |
|
|
|
|
|
|
|
|
Colorado Health Facilities Authority, RB, Catholic Health |
|
|
1,060 |
|
|
1,168,501 |
|
|
Colorado Housing & Finance Authority, Refunding RB, |
|
|
80 |
|
|
81,826 |
|
|
Plaza Metropolitan District No. 1 Colorado, Tax Allocation |
|
|
|
|
|
|
|
|
8.00%, 12/01/25 |
|
|
3,300 |
|
|
3,327,291 |
|
|
Subordinate, 8.13%, 12/01/25 |
|
|
820 |
|
|
766,274 |
|
|
University of Colorado, RB, Series A, 5.75%, 6/01/28 |
|
|
750 |
|
|
858,292 |
|
|
|
|
|
|
|
|
6,202,184 |
|
|
Connecticut — 2.2% |
|
|
|
|
|
|
|
|
Connecticut State Health & Educational Facility |
|
|
|
|
|
|
|
|
Ascension Health Senior Credit, 5.00%, 11/15/40 |
|
|
1,375 |
|
|
1,412,510 |
|
|
Wesleyan University, 5.00%, 7/01/35 |
|
|
3,385 |
|
|
3,620,427 |
|
|
Mohegan Tribe of Indians of Connecticut, RB, Public |
|
|
2,000 |
|
|
1,590,360 |
|
|
|
|
|
|
|
|
6,623,297 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Delaware — 1.6% |
|
|
|
|
|
|
|
|
County of Sussex Delaware, RB, NRG Energy, Inc., |
|
$ |
1,125 |
|
$ |
1,131,581 |
|
|
Delaware State EDA, RB, Exempt Facilities, Indian River |
|
|
4,065 |
|
|
3,727,930 |
|
|
|
|
|
|
|
|
4,859,511 |
|
|
District of Columbia — 2.0% |
|
|
|
|
|
|
|
|
Metropolitan Washington Airports Authority, RB: |
|
|
|
|
|
|
|
|
CAB, Second Senior Lien, Series B (AGC), 6.15%, |
|
|
6,590 |
|
|
1,796,104 |
|
|
CAB, Second Senior Lien, Series B (AGC), 6.24%, |
|
|
4,830 |
|
|
1,235,128 |
|
|
CAB, Second Senior Lien, Series B (AGC), 6.26%, |
|
|
6,515 |
|
|
1,566,141 |
|
|
First Senior Lien, Series A, 5.25%, 10/01/44 |
|
|
1,500 |
|
|
1,558,980 |
|
|
|
|
|
|
|
|
6,156,353 |
|
|
Florida — 7.0% |
|
|
|
|
|
|
|
|
County of Miami-Dade Florida, RB, Water & Sewer |
|
|
5,680 |
|
|
5,933,158 |
|
|
County of Miami-Dade Florida, Refunding RB: |
|
|
|
|
|
|
|
|
Series A-1, 5.38%, 10/01/41 |
|
|
1,165 |
|
|
1,197,760 |
|
|
Miami International Airport, AMT, (AGC), 5.00%, |
|
|
4,940 |
|
|
4,735,830 |
|
|
Fiddlers Creek Community Development District No. 2, |
|
|
|
|
|
|
|
|
Series A, 6.38%, 5/01/35 |
|
|
2,350 |
|
|
847,434 |
|
|
Series B, 5.75%, 5/01/13 |
|
|
400 |
|
|
144,244 |
|
|
Hillsborough County IDA, RB: |
|
|
|
|
|
|
|
|
H. Lee Moffitt Cancer Center Project, Series A, |
|
|
1,050 |
|
|
1,001,563 |
|
|
National Gypsum Co., Series B, AMT, 7.13%, |
|
|
2,720 |
|
|
2,424,064 |
|
|
Mid-Bay Bridge Authority, RB, Series A, 7.25%, |
|
|
2,265 |
|
|
2,370,730 |
|
|
Midtown Miami Community Development District, |
|
|
915 |
|
|
902,382 |
|
|
Palm Coast Park Community Development District, |
|
|
1,200 |
|
|
733,488 |
|
|
Preserve at Wilderness Lake Community Development |
|
|
855 |
|
|
858,420 |
|
|
|
|
|
|
|
|
21,149,073 |
|
|
Georgia — 4.8% |
|
|
|
|
|
|
|
|
DeKalb Private Hospital Authority, Refunding RB, |
|
|
845 |
|
|
868,398 |
|
|
Fulton County Residential Care Facilities for the Elderly |
|
|
2,000 |
|
|
1,881,400 |
|
|
Metropolitan Atlanta Rapid Transit Authority, Sales Tax |
|
|
3,465 |
|
|
3,612,574 |
|
|
Municipal Electric Authority of Georgia, RB: |
|
|
|
|
|
|
|
|
Series W, 6.60%, 1/01/18 (d)(f) |
|
|
380 |
|
|
415,587 |
|
|
Series W, 6.60%, 1/01/18 |
|
|
5,540 |
|
|
6,301,141 |
|
|
Municipal Electric Authority of Georgia, Refunding RB, |
|
|
1,205 |
|
|
1,416,598 |
|
|
|
|
|
|
|
|
14,495,698 |
|
|
Guam — 0.7% |
|
|
|
|
|
|
|
|
Territory of Guam, GO, Series A: |
|
|
|
|
|
|
|
|
6.00%, 11/15/19 |
|
|
630 |
|
|
641,220 |
|
|
6.75%, 11/15/29 |
|
|
895 |
|
|
922,683 |
|
|
7.00%, 11/15/39 |
|
|
615 |
|
|
637,263 |
|
|
|
|
|
|
|
|
2,201,166 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
43 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniVest Fund II, Inc. (MVT) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Hawaii — 0.5% |
|
|
|
|
|
|
|
|
State of Hawaii, Refunding RB, Series A, 5.25%, |
|
$ |
1,355 |
|
$ |
1,424,200 |
|
|
Illinois — 15.9% |
|
|
|
|
|
|
|
|
City of Chicago Illinois, Board of Education, GO, |
|
|
|
|
|
|
|
|
5.50%, 12/01/39 |
|
|
2,110 |
|
|
2,235,545 |
|
|
5.00%, 12/01/41 |
|
|
695 |
|
|
692,825 |
|
|
City of Chicago Illinois, Refunding RB, O’Hare |
|
|
5,865 |
|
|
6,747,213 |
|
|
City of Chicago Illinois, Special Assessment Bonds, |
|
|
800 |
|
|
819,312 |
|
|
City of Chicago Illinois, Tax Allocation Bonds, Kingsbury |
|
|
700 |
|
|
700,098 |
|
|
City of Chicago Illinois, Transit Authority, RB, Sales Tax |
|
|
1,050 |
|
|
1,081,447 |
|
|
Illinois Finance Authority, RB: |
|
|
|
|
|
|
|
|
Advocate Health Care Network, Series D, 6.50%, |
|
|
5,000 |
|
|
5,522,200 |
|
|
Community Rehabilitation Providers Facilities, |
|
|
530 |
|
|
557,268 |
|
|
Community Rehabilitation Providers Facilities, |
|
|
470 |
|
|
426,549 |
|
|
Navistar International, Recovery Zone, 6.50%, |
|
|
1,540 |
|
|
1,588,710 |
|
|
Illinois Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
Central DuPage Health, Series B, 5.50%, |
|
|
1,610 |
|
|
1,666,833 |
|
|
Friendship Village of Schaumburg, Series A, 5.63%, |
|
|
250 |
|
|
203,558 |
|
|
Metropolitan Pier & Exposition Authority, Refunding RB, |
|
|
|
|
|
|
|
|
Series B, 5.00%, 6/15/50 |
|
|
3,150 |
|
|
3,070,935 |
|
|
Series B-2, 5.00%, 6/15/50 |
|
|
2,500 |
|
|
2,433,175 |
|
|
Railsplitter Tobacco Settlement Authority, RB: |
|
|
|
|
|
|
|
|
5.50%, 6/01/23 |
|
|
1,335 |
|
|
1,409,199 |
|
|
6.00%, 6/01/28 |
|
|
1,140 |
|
|
1,185,395 |
|
|
Regional Transportation Authority, RB: |
|
|
|
|
|
|
|
|
Series A (AMBAC), 7.20%, 11/01/20 |
|
|
1,260 |
|
|
1,501,303 |
|
|
Series A (NPFGC), 6.70%, 11/01/21 |
|
|
7,000 |
|
|
8,266,580 |
|
|
Series C (FGIC), 7.75%, 6/01/20 |
|
|
2,500 |
|
|
3,068,600 |
|
|
State of Illinois, RB, Build Illinois, Series B, 5.25%, |
|
|
630 |
|
|
659,345 |
|
|
Village of Hodgkins Illinois, RB, MBM Project, AMT, |
|
|
2,800 |
|
|
2,801,372 |
|
|
Village of Wheeling Illinois, Tax Allocation Bonds, North |
|
|
1,550 |
|
|
1,445,623 |
|
|
|
|
|
|
|
|
48,083,085 |
|
|
Indiana — 2.6% |
|
|
|
|
|
|
|
|
Indiana Finance Authority, RB: |
|
|
|
|
|
|
|
|
Sisters of St. Francis Health, 5.25%, 11/01/39 |
|
|
840 |
|
|
855,926 |
|
|
Wastewater Utility, First Lien, CWA Authority Project, |
|
|
1,580 |
|
|
1,685,623 |
|
|
Indiana Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
Ascension Health Senior Credit, Series B-5, |
|
|
1,500 |
|
|
1,523,985 |
|
|
Parkview Health System, Series A, 5.75%, 5/01/31 |
|
|
3,295 |
|
|
3,450,096 |
|
|
Indiana Health & Educational Facilities Financing |
|
|
375 |
|
|
375,968 |
|
|
|
|
|
|
|
|
7,891,598 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Kansas — 0.6% |
|
|
|
|
|
|
|
|
Kansas Development Finance Authority, Refunding RB, |
|
$ |
1,660 |
|
$ |
1,677,629 |
|
|
Kentucky — 0.4% |
|
|
|
|
|
|
|
|
Kentucky Economic Development Finance Authority, RB, |
|
|
1,010 |
|
|
1,055,016 |
|
|
Louisiana — 4.8% |
|
|
|
|
|
|
|
|
Louisiana Local Government Environmental Facilities & |
|
|
3,320 |
|
|
3,460,635 |
|
|
Port of New Orleans Louisiana, Refunding RB, |
|
|
7,500 |
|
|
7,502,250 |
|
|
Sabine River Authority Louisiana, Refunding RB, |
|
|
3,600 |
|
|
3,639,276 |
|
|
|
|
|
|
|
|
14,602,161 |
|
|
Maryland — 1.7% |
|
|
|
|
|
|
|
|
County of Montgomery Maryland, GO, West Germantown |
|
|
1,155 |
|
|
1,182,524 |
|
|
Maryland Community Development Administration, |
|
|
1,500 |
|
|
1,449,000 |
|
|
Maryland EDC, RB, Transportation Facilities Project, |
|
|
435 |
|
|
430,380 |
|
|
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., |
|
|
830 |
|
|
833,287 |
|
|
Maryland Health & Higher Educational Facilities |
|
|
1,000 |
|
|
1,179,690 |
|
|
|
|
|
|
|
|
5,074,881 |
|
|
Massachusetts — 5.4% |
|
|
|
|
|
|
|
|
Massachusetts Health & Educational Facilities Authority, |
|
|
1,805 |
|
|
1,841,732 |
|
|
Massachusetts HFA, HRB, Series A, AMT, 5.20%, |
|
|
3,000 |
|
|
3,014,280 |
|
|
Massachusetts HFA, RB, S/F, Series 130, AMT, 5.00%, |
|
|
2,720 |
|
|
2,716,355 |
|
|
Massachusetts HFA, Refunding HRB, AMT: |
|
|
|
|
|
|
|
|
Series D, 4.85%, 6/01/40 |
|
|
1,770 |
|
|
1,721,891 |
|
|
Series F, 5.70%, 6/01/40 |
|
|
2,155 |
|
|
2,210,362 |
|
|
Massachusetts School Building Authority, Sales Tax |
|
|
4,535 |
|
|
4,842,836 |
|
|
|
|
|
|
|
|
16,347,456 |
|
|
Michigan — 7.3% |
|
|
|
|
|
|
|
|
City of Detroit Michigan, RB, Senior Lien, Series B |
|
|
910 |
|
|
1,078,796 |
|
|
Flint Hospital Building Authority Michigan, Refunding |
|
|
2,465 |
|
|
2,465,148 |
|
|
Kalamazoo Hospital Finance Authority, Refunding RB, |
|
|
1,380 |
|
|
1,388,363 |
|
|
Michigan State Hospital Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
Henry Ford Health System, Series A, 5.25%, |
|
|
6,850 |
|
|
6,624,224 |
|
|
Mclaren Health Care, Series A, 5.75%, 5/15/38 |
|
|
8,560 |
|
|
8,880,315 |
|
|
Royal Oak Hospital Finance Authority Michigan, |
|
|
1,400 |
|
|
1,660,484 |
|
|
|
|
|
|
|
|
22,097,330 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
44 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniVest Fund II, Inc. (MVT) |
|
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Mississippi — 1.4% |
|
|
|
|
|
|
|
|
County of Lowndes Mississippi, Refunding RB, |
|
$ |
3,000 |
|
$ |
3,190,410 |
|
|
University of Southern Mississippi, RB, Campus |
|
|
1,065 |
|
|
1,146,259 |
|
|
|
|
|
|
|
|
4,336,669 |
|
|
Nevada — 0.2% |
|
|
|
|
|
|
|
|
County of Clark Nevada, Special Assessment Bonds, |
|
|
555 |
|
|
568,253 |
|
|
New Jersey — 3.3% |
|
|
|
|
|
|
|
|
New Jersey EDA, RB: |
|
|
|
|
|
|
|
|
Cigarette Tax, 5.50%, 6/15/24 |
|
|
2,420 |
|
|
2,380,966 |
|
|
Continental Airlines, Inc. Project, AMT, 6.25%, |
|
|
3,000 |
|
|
2,836,410 |
|
|
New Jersey Health Care Facilities Financing Authority, |
|
|
1,680 |
|
|
17 |
|
|
New Jersey State Housing & Mortgage Finance Agency, |
|
|
1,200 |
|
|
1,331,976 |
|
|
New Jersey Transportation Trust Fund Authority, RB, |
|
|
1,635 |
|
|
1,765,440 |
|
|
Tobacco Settlement Financing Corp. New Jersey, |
|
|
1,860 |
|
|
1,688,731 |
|
|
|
|
|
|
|
|
10,003,540 |
|
|
New York — 10.1% |
|
|
|
|
|
|
|
|
Hudson New York Yards Infrastructure Corp., Senior RB, |
|
|
1,605 |
|
|
1,699,551 |
|
|
Metropolitan Transportation Authority, RB, Series 2008C, |
|
|
9,405 |
|
|
11,010,904 |
|
|
Metropolitan Transportation Authority, Refunding RB, |
|
|
1,205 |
|
|
1,263,274 |
|
|
New York City Industrial Development Agency, RB: |
|
|
|
|
|
|
|
|
British Airways Plc Project, 7.63%, 12/01/32 |
|
|
1,920 |
|
|
1,927,642 |
|
|
Series C, 6.80%, 6/01/28 |
|
|
690 |
|
|
711,652 |
|
|
Special Needs Facilities Pooled Program, |
|
|
890 |
|
|
879,186 |
|
|
New York City Transitional Finance Authority, RB, |
|
|
6,700 |
|
|
7,150,240 |
|
|
New York Liberty Development Corp., Refunding RB, |
|
|
1,220 |
|
|
1,265,957 |
|
|
Port Authority of New York & New Jersey, RB, JFK |
|
|
|
|
|
|
|
|
6.00%, 12/01/36 |
|
|
1,165 |
|
|
1,206,148 |
|
|
6.00%, 12/01/42 |
|
|
1,250 |
|
|
1,307,150 |
|
|
New York Dormitory Authority, RB, North Shore-Long |
|
|
1,255 |
|
|
1,241,634 |
|
|
Westchester County Industrial Development Agency |
|
|
1,000 |
|
|
987,850 |
|
|
|
|
|
|
|
|
30,651,188 |
|
|
North Carolina — 1.5% |
|
|
|
|
|
|
|
|
Gaston County Industrial Facilities & Pollution Control |
|
|
1,675 |
|
|
1,300,872 |
|
|
North Carolina Medical Care Commission, RB, Duke |
|
|
1,400 |
|
|
1,423,800 |
|
|
North Carolina Medical Care Commission, Refunding |
|
|
2,000 |
|
|
1,804,780 |
|
|
|
|
|
|
|
|
4,529,452 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Pennsylvania — 3.9% |
|
|
|
|
|
|
|
|
Allegheny County Hospital Development Authority, |
|
$ |
4,250 |
|
$ |
3,486,998 |
|
|
Bucks County IDA, RB, Ann’s Choice Inc. Facility, |
|
|
880 |
|
|
848,742 |
|
|
Lancaster County Hospital Authority, RB, Brethren |
|
|
2,000 |
|
|
2,000,700 |
|
|
Montgomery County IDA Pennsylvania, MRB, |
|
|
470 |
|
|
410,211 |
|
|
Pennsylvania Economic Development Financing |
|
|
|
|
|
|
|
|
Aqua Pennsylvania Inc. Project, 5.00%, 11/15/40 |
|
|
1,890 |
|
|
1,985,634 |
|
|
National Gypsum Co., Series B, AMT, 6.13%, |
|
|
2,000 |
|
|
1,678,320 |
|
|
Philadelphia Authority for Industrial Development, RB, |
|
|
1,265 |
|
|
1,266,063 |
|
|
|
|
|
|
|
|
11,676,668 |
|
|
Puerto Rico — 1.6% |
|
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, First |
|
|
4,255 |
|
|
4,791,428 |
|
|
South Carolina — 1.7% |
|
|
|
|
|
|
|
|
South Carolina State Ports Authority, RB, 5.25%, |
|
|
3,280 |
|
|
3,459,547 |
|
|
South Carolina State Public Service Authority, |
|
|
1,540 |
|
|
1,654,792 |
|
|
|
|
|
|
|
|
5,114,339 |
|
|
Tennessee — 0.3% |
|
|
|
|
|
|
|
|
Johnson City Health & Educational Facilities Board, |
|
|
1,000 |
|
|
951,520 |
|
|
Texas — 11.6% |
|
|
|
|
|
|
|
|
Brazos River Authority, Refunding RB, Texas Utility Co., |
|
|
1,500 |
|
|
389,955 |
|
|
Brazos River Harbor Navigation District, Refunding RB, |
|
|
3,000 |
|
|
3,034,740 |
|
|
Central Texas Regional Mobility Authority, RB, Senior Lien, |
|
|
2,140 |
|
|
2,176,337 |
|
|
City of Dallas Texas, Refunding RB, Waterworks & Sewer |
|
|
1,510 |
|
|
1,638,773 |
|
|
City of Houston Texas, RB, Special Facilities, Continental |
|
|
4,820 |
|
|
4,732,469 |
|
|
Harris County Health Facilities Development Corp., |
|
|
2,000 |
|
|
2,244,000 |
|
|
Harris County Texas Metropolitan Transit Authority, RB, |
|
|
3,400 |
|
|
3,631,710 |
|
|
North Texas Tollway Authority, Refunding RB, First Tier, |
|
|
7,000 |
|
|
7,564,760 |
|
|
Sabine River Authority Texas, Refunding RB, TXU |
|
|
2,250 |
|
|
2,250,000 |
|
|
Texas Private Activity Bond Surface Transportation Corp., |
|
|
|
|
|
|
|
|
LBJ Infrastructure Group LLC, LBJ Freeway Managed |
|
|
3,950 |
|
|
4,246,605 |
|
|
NTE Mobility Partners LLC, North Tarrant Express |
|
|
3,000 |
|
|
3,201,090 |
|
|
|
|
|
|
|
|
35,110,439 |
|
|
US Virgin Islands — 1.9% |
|
|
|
|
|
|
|
|
United States Virgin Islands, Refunding RB, Senior |
|
|
6,000 |
|
|
5,728,380 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|||
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
45 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock MuniVest Fund II, Inc. (MVT) |
|
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
Utah — 0.9% |
|
|
|
|
|
|
|
|
City of Riverton Utah, RB, IHC Health Services Inc., |
|
$ |
2,780 |
|
$ |
2,817,391 |
|
|
Virginia — 1.2% |
|
|
|
|
|
|
|
|
Fairfax County EDA, Refunding RB, Goodwin House Inc: |
|
|
|
|
|
|
|
|
5.13%, 10/01/37 |
|
|
500 |
|
|
474,900 |
|
|
5.13%, 10/01/42 |
|
|
3,440 |
|
|
3,220,081 |
|
|
|
|
|
|
|
|
3,694,981 |
|
|
Washington — 2.1% |
|
|
|
|
|
|
|
|
Washington Health Care Facilities Authority, RB, Swedish |
|
|
1,980 |
|
|
2,181,821 |
|
|
Washington Health Care Facilities Authority, Refunding |
|
|
3,700 |
|
|
4,157,320 |
|
|
|
|
|
|
|
|
6,339,141 |
|
|
Wisconsin — 4.2% |
|
|
|
|
|
|
|
|
State of Wisconsin, Refunding RB, Series A, 6.00%, |
|
|
7,100 |
|
|
7,943,977 |
|
|
Wisconsin Health & Educational Facilities Authority, RB: |
|
|
|
|
|
|
|
|
Ascension Health Senior Credit Group, 5.00%, |
|
|
2,465 |
|
|
2,547,331 |
|
|
SynergyHealth Inc., 6.00%, 11/15/32 |
|
|
2,215 |
|
|
2,258,923 |
|
|
|
|
|
|
|
|
12,750,231 |
|
|
Total Municipal Bonds — 122.1% |
|
|
|
|
|
369,448,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
|
|
|
|
|
|
|
California — 6.6% |
|
|
|
|
|
|
|
|
Bay Area Toll Authority, Refunding RB, San Francisco |
|
|
3,271 |
|
|
3,542,025 |
|
|
California Educational Facilities Authority, RB, University |
|
|
2,610 |
|
|
2,820,079 |
|
|
Los Angeles Community College District California, GO, |
|
|
2,290 |
|
|
2,402,851 |
|
|
San Diego Community College District California, GO, |
|
|
1,077 |
|
|
1,173,205 |
|
|
San Francisco City & County Public Utilities Commission, |
|
|
9,480 |
|
|
9,899,111 |
|
|
|
|
|
|
|
|
19,837,271 |
|
|
Colorado — 0.8% |
|
|
|
|
|
|
|
|
Colorado Health Facilities Authority, Refunding RB, |
|
|
2,129 |
|
|
2,230,929 |
|
|
Connecticut — 2.1% |
|
|
|
|
|
|
|
|
Connecticut State Health & Educational Facility Authority, |
|
|
6,000 |
|
|
6,458,040 |
|
|
Illinois — 1.5% |
|
|
|
|
|
|
|
|
City of Chicago Illinois Waterworks, Refunding RB, |
|
|
1,320 |
|
|
1,376,852 |
|
|
Illinois State Toll Highway Authority, RB, Series B, 5.50%, |
|
|
2,999 |
|
|
3,164,239 |
|
|
|
|
|
|
|
|
4,541,091 |
|
|
Maryland — 0.8% |
|
|
|
|
|
|
|
|
Maryland State Transportation Authority, RB, |
|
|
2,290 |
|
|
2,425,476 |
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
Par |
|
Value |
|
||
|
Massachusetts — 3.5% |
|
|
|
|
|
|
|
|
Massachusetts School Building Authority, RB, Series A |
|
$ |
10,000 |
|
$ |
10,668,300 |
|
|
New Hampshire — 0.7% |
|
|
|
|
|
|
|
|
New Hampshire Health & Education Facilities Authority, |
|
|
2,009 |
|
|
2,221,693 |
|
|
New York — 4.8% |
|
|
|
|
|
|
|
|
New York City Municipal Water & Sewer Finance |
|
|
|
|
|
|
|
|
Series DD, 5.00%, 6/15/37 |
|
|
6,299 |
|
|
6,632,108 |
|
|
Series FF-2, 5.50%, 6/15/40 |
|
|
1,575 |
|
|
1,734,914 |
|
|
New York State Dormitory Authority, ERB, Series F, |
|
|
5,789 |
|
|
5,992,015 |
|
|
|
|
|
|
|
|
14,359,037 |
|
|
North Carolina — 2.2% |
|
|
|
|
|
|
|
|
North Carolina Capital Facilities Finance Agency, |
|
|
6,239 |
|
|
6,517,789 |
|
|
Ohio — 5.6% |
|
|
|
|
|
|
|
|
Ohio Higher Educational Facility Commission, |
|
|
2,400 |
|
|
2,474,976 |
|
|
State of Ohio, Refunding RB, Cleveland Clinic Health, |
|
|
13,840 |
|
|
14,403,565 |
|
|
|
|
|
|
|
|
16,878,541 |
|
|
South Carolina — 1.8% |
|
|
|
|
|
|
|
|
South Carolina State Public Service Authority, RB, |
|
|
4,995 |
|
|
5,431,613 |
|
|
Texas — 6.2% |
|
|
|
|
|
|
|
|
Harris County Health Facilities Development Corp., |
|
|
10,000 |
|
|
12,479,100 |
|
|
Texas Department of Housing & Community Affairs, |
|
|
3,451 |
|
|
3,497,407 |
|
|
Texas State University Systems, Refunding RB (AGM), |
|
|
2,743 |
|
|
2,852,345 |
|
|
|
|
|
|
|
|
18,828,852 |
|
|
Washington — 5.8% |
|
|
|
|
|
|
|
|
Central Puget Sound Regional Transit Authority, RB, |
|
|
|
|
|
|
|
|
5.00%, 11/01/34 |
|
|
5,000 |
|
|
5,261,675 |
|
|
5.00%, 11/01/36 |
|
|
4,000 |
|
|
4,209,340 |
|
|
(AGM), 5.00%, 11/01/32 |
|
|
7,693 |
|
|
8,117,137 |
|
|
|
|
|
|
|
|
17,588,152 |
|
|
Wisconsin — 0.8% |
|
|
|
|
|
|
|
|
Wisconsin Health & Educational Facilities Authority, |
|
|
2,499 |
|
|
2,528,396 |
|
|
Total
Municipal Bonds Transferred to |
|
|
|
|
|
130,515,180 |
|
|
Total
Long-Term Investments |
|
|
|
|
|
499,963,970 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
46 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Schedule of Investments (concluded) |
BlackRock MuniVest Fund II, Inc. (MVT) |
|
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Short-Term Securities |
|
Shares |
|
Value |
|
||
|
FFI Institutional Tax-Exempt Fund, 0.01% (i)(j) |
|
|
9,375,178 |
|
$ |
9,375,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Par |
|
|
|
|
|
|
Michigan Finance Authority, RB, SAN, Detroit Schools, |
|
$ |
3,255 |
|
|
3,255,000 |
|
|
Total
Short-Term Securities |
|
|
|
|
|
12,630,178 |
|
|
Total Investments (Cost — $489,716,584*) — 169.5% |
|
|
|
|
|
512,594,148 |
|
|
Liabilities in Excess of Other Assets — (0.6)% |
|
|
|
|
|
(1,734,050 |
) |
|
Liability
for TOB Trust Certificates, Including |
|
|
|
|
|
(68,352,856 |
) |
|
AMPS, at Redemption Value — (46.3)% |
|
|
|
|
|
(140,012,975 |
) |
|
Net Assets Applicable to Common Shares — 100.0% |
|
|
|
|
$ |
302,494,267 |
|
|
|
|
|
|
|
|
* |
The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows: |
|
|
|
|
|
|
|
Aggregate cost |
|
$ |
422,378,352 |
|
|
Gross unrealized appreciation |
|
$ |
30,916,120 |
|
|
Gross unrealized depreciation |
|
|
(9,024,711 |
) |
|
Net unrealized appreciation |
|
$ |
21,891,409 |
|
|
|
|
|
|
|
|
|
(a) |
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
|
|
|
|
(b) |
Issuer filed for bankruptcy and/or is in default of interest payments. |
|
|
|
|
(c) |
Non-income producing security. |
|
|
|
|
(d) |
Security is collateralized by Municipal or US Treasury obligations. |
|
|
|
|
(e) |
When-issued security. Unsettled when-issued transactions were as follows: |
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Value |
|
Unrealized |
|
||
|
Jeffries & Co. |
|
$ |
2,928,370 |
|
$ |
69,212 |
|
|
Wells Fargo Bank, Inc. |
|
$ |
1,081,447 |
|
$ |
3,392 |
|
|
|
|
|
(f) |
US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par. |
|
|
|
|
(g) |
Variable rate security. Rate shown is as of report date. |
|
|
|
|
(h) |
Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
(i) |
Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate |
|
Shares |
|
Net |
|
Shares |
|
Income |
|
||||
|
FFI Institutional Tax-Exempt Fund |
|
|
5,653,323 |
|
|
3,721,855 |
|
|
9,375,178 |
|
$ |
638 |
|
|
|
|
|
(j) |
Represents the current yield as of report date. |
|
|
|
|
• |
Financial futures contracts sold as of October 31, 2011 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts |
|
Issue |
|
Exchange |
|
Expiration |
|
|
Notional |
|
|
Unrealized |
|
|
72 |
|
10-Year
US |
|
Chicago
Board |
|
December |
|
$ |
9,292,500 |
|
$ |
92,019 |
|
|
|
|
|
|
• |
Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
|
|
|
|
|
|
|
• |
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
|
• |
Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
|
|
|
|
|
|
• |
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
|
|
|
|
|
|
Changes in valuation
techniques may result in transfers in or out of an assigned level within the
disclosure hierarchy. The categorization of a value determined for
investments and derivative financial instruments is based on the pricing
transparency of the investment and derivative financial instrument and does
not necessarily correspond to the Fund’s perceived risk of investing in those
securities. For information about the Fund’s policy regarding valuation of
investments and derivative financial instruments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial
Statements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term |
|
|
— |
|
$ |
499,963,970 |
|
|
— |
|
$ |
499,963,970 |
|
|
Short-Term |
|
$ |
9,375,178 |
|
|
3,255,000 |
|
|
— |
|
|
12,630,178 |
|
|
Total |
|
$ |
9,375,178 |
|
$ |
503,218,970 |
|
|
— |
|
$ |
512,594,148 |
|
|
|
|
|
|
|
1 |
See above Schedule of Investments for values in each state or political subdivision. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Derivative Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate |
|
$ |
92,019 |
|
|
— |
|
|
— |
|
$ |
92,019 |
|
|
|
|
|
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31, 2011 (Unaudited) |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments at value — unaffiliated1 |
|
$ |
476,126,156 |
|
$ |
522,316,595 |
|
$ |
344,126,546 |
|
$ |
253,287,158 |
|
$ |
289,352,296 |
|
$ |
888,925,271 |
|
$ |
503,218,970 |
|
|
|
Investments at value — affiliated2 |
|
|
3,791,874 |
|
|
8,274,103 |
|
|
6,651,301 |
|
|
3,626,155 |
|
|
11,022,378 |
|
|
44,991,356 |
|
|
9,375,178 |
|
|
|
Cash pledged as collateral for financial futures contracts |
|
|
109,440 |
|
|
— |
|
|
87,002 |
|
|
60,000 |
|
|
— |
|
|
— |
|
|
147,000 |
|
|
|
Interest receivable |
|
|
8,769,225 |
|
|
7,612,291 |
|
|
5,640,216 |
|
|
3,982,039 |
|
|
4,076,995 |
|
|
12,745,347 |
|
|
8,712,964 |
|
|
|
Investments sold receivable |
|
|
1,299,198 |
|
|
3,592,958 |
|
|
950,040 |
|
|
337,540 |
|
|
35,691 |
|
|
1,560,000 |
|
|
371,691 |
|
|
|
Dividends receivable — affiliated |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
424 |
|
|
— |
|
|
|
Deferred offering costs |
|
|
— |
|
|
365,426 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,014,823 |
|
|
— |
|
|
|
Prepaid expenses |
|
|
1,935 |
|
|
96,253 |
|
|
2,400 |
|
|
1,735 |
|
|
12,046 |
|
|
6,108 |
|
|
3,227 |
|
|
|
Other assets |
|
|
— |
|
|
26,449 |
|
|
— |
|
|
— |
|
|
— |
|
|
106,400 |
|
|
— |
|
|
|
Total assets |
|
|
490,097,828 |
|
|
542,284,075 |
|
|
357,457,505 |
|
|
261,294,627 |
|
|
304,499,406 |
|
|
949,349,729 |
|
|
521,829,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdraft |
|
|
— |
|
|
24,146 |
|
|
— |
|
|
1,995 |
|
|
3,135 |
|
|
24,723 |
|
|
— |
|
|
|
Investments purchased payable |
|
|
2,605,639 |
|
|
4,458,602 |
|
|
6,085,005 |
|
|
4,408,381 |
|
|
8,971,971 |
|
|
13,540,173 |
|
|
8,764,676 |
|
|
|
Income dividends payable — Common Shares |
|
|
2,233,870 |
|
|
1,678,830 |
|
|
1,267,079 |
|
|
914,921 |
|
|
958,674 |
|
|
2,719,498 |
|
|
1,835,168 |
|
|
|
Investment advisory fees payable |
|
|
226,359 |
|
|
226,268 |
|
|
160,850 |
|
|
112,759 |
|
|
120,046 |
|
|
432,505 |
|
|
204,374 |
|
|
|
Margin variation payable |
|
|
55,219 |
|
|
— |
|
|
43,594 |
|
|
30,031 |
|
|
— |
|
|
— |
|
|
69,750 |
|
|
|
Officer’s and Directors’ fees payable |
|
|
20,141 |
|
|
864 |
|
|
1,296 |
|
|
8,843 |
|
|
6,089 |
|
|
126,815 |
|
|
15,193 |
|
|
|
Interest expense and fees payable |
|
|
11,320 |
|
|
36,323 |
|
|
14,717 |
|
|
11,811 |
|
|
13,876 |
|
|
32,571 |
|
|
28,469 |
|
|
|
Other accrued expenses payable |
|
|
98,102 |
|
|
12,104 |
|
|
48,797 |
|
|
32,820 |
|
|
68,660 |
|
|
149,673 |
|
|
79,771 |
|
|
|
Total accrued liabilities |
|
|
5,250,650 |
|
|
6,437,137 |
|
|
7,621,338 |
|
|
5,521,561 |
|
|
10,142,451 |
|
|
17,025,958 |
|
|
10,997,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOB trust certificates |
|
|
31,890,809 |
|
|
63,947,084 |
|
|
43,041,920 |
|
|
33,301,675 |
|
|
31,595,414 |
|
|
66,608,812 |
|
|
68,324,387 |
|
|
|
VRDP Shares, at liquidation value of $100,000 per share3,4 |
|
|
— |
|
|
142,500,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
287,100,000 |
|
|
— |
|
|
|
Total liabilities |
|
|
37,141,459 |
|
|
212,884,221 |
|
|
50,663,258 |
|
|
38,823,236 |
|
|
41,737,865 |
|
|
370,734,770 |
|
|
79,321,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMPS at Redemption Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$25,000 per share at liquidation preference, plus unpaid dividends3,4 |
|
|
— |
|
|
— |
|
|
83,706,722 |
|
|
55,051,207 |
|
|
87,002,723 |
|
|
— |
|
|
140,012,975 |
|
|
|
Net Assets Applicable to Common Shareholders |
|
$ |
452,956,369 |
|
$ |
329,399,854 |
|
$ |
223,087,525 |
|
$ |
167,420,184 |
|
$ |
175,758,818 |
|
$ |
578,614,959 |
|
$ |
302,494,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Applicable to Common Shareholders Consist of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid-in capital5,6 |
|
$ |
479,397,343 |
|
$ |
315,451,778 |
|
$ |
208,866,540 |
|
$ |
154,323,891 |
|
$ |
174,480,906 |
|
$ |
540,458,418 |
|
$ |
283,477,828 |
|
|
|
Undistributed net investment income |
|
|
2,072,885 |
|
|
5,849,045 |
|
|
4,461,503 |
|
|
3,974,723 |
|
|
3,327,259 |
|
|
9,470,711 |
|
|
6,509,973 |
|
|
|
Accumulated net realized loss |
|
|
(26,587,896 |
) |
|
(11,075,199 |
) |
|
(455,201 |
) |
|
(995,600 |
) |
|
(14,775,103 |
) |
|
(990,284 |
) |
|
(10,463,117 |
) |
|
|
Net unrealized appreciation/depreciation |
|
|
(1,925,963 |
) |
|
19,174,230 |
|
|
10,214,683 |
|
|
10,117,170 |
|
|
12,725,756 |
|
|
29,676,114 |
|
|
22,969,583 |
|
|
|
Net Assets Applicable to Common Shareholders |
|
$ |
452,956,369 |
|
$ |
329,399,854 |
|
$ |
223,087,525 |
|
$ |
167,420,184 |
|
$ |
175,758,818 |
|
$ |
578,614,959 |
|
$ |
302,494,267 |
|
|
|
Net asset value, per Common Share |
|
$ |
12.67 |
|
$ |
11.18 |
|
$ |
15.91 |
|
$ |
14.91 |
|
$ |
13.57 |
|
$ |
15.21 |
|
$ |
14.59 |
|
|
|
|
|||||||||||||||||||||||
|
1 |
Investments at cost — unaffiliated |
|
$ |
478,110,339 |
|
$ |
503,142,365 |
|
$ |
333,962,465 |
|
$ |
243,205,351 |
|
$ |
276,626,540 |
|
$ |
859,249,157 |
|
$ |
480,341,406 |
|
|
2 |
Investments at cost — affiliated |
|
$ |
3,791,874 |
|
$ |
8,274,103 |
|
$ |
6,651,301 |
|
$ |
3,626,155 |
|
$ |
11,022,378 |
|
$ |
44,991,356 |
|
$ |
9,375,178 |
|
|
3 |
Preferred Shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Par value $0.05 per share |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,320 |
|
|
|
Par value $0.10 per share |
|
|
— |
|
|
1,425 |
|
|
3,348 |
|
|
2,202 |
|
|
3,480 |
|
|
2,871 |
|
|
1,280 |
|
|
4 |
Preferred Shares authorized |
|
|
— |
|
|
7,480 |
|
|
5,000 |
|
|
3,480 |
|
|
5,360 |
|
|
15,671 |
|
|
7,000 |
|
|
5 |
Common Shares outstanding, $0.10 par value |
|
|
35,741,923 |
|
|
29,453,152 |
|
|
14,022,198 |
|
|
11,226,029 |
|
|
12,955,055 |
|
|
38,034,934 |
|
|
20,736,357 |
|
|
6 |
Common Shares authorized |
|
|
200 million |
|
|
200 million |
|
|
200 million |
|
|
200 million |
|
|
200 million |
|
|
200 million |
|
|
200 million |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
48 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
|||||||
|
Investment Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
$ |
15,501,034 |
|
$ |
12,741,647 |
|
$ |
9,268,911 |
|
$ |
6,800,361 |
|
$ |
6,866,869 |
|
$ |
21,872,403 |
|
$ |
13,614,523 |
|
|
Income — affiliated |
|
|
789 |
|
|
1,077 |
|
|
1,438 |
|
|
365 |
|
|
1,599 |
|
|
7,053 |
|
|
638 |
|
|
Total income |
|
|
15,501,823 |
|
|
12,742,724 |
|
|
9,270,349 |
|
|
6,800,726 |
|
|
6,868,468 |
|
|
21,879,456 |
|
|
13,615,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory |
|
|
1,319,124 |
|
|
1,312,967 |
|
|
945,057 |
|
|
690,776 |
|
|
796,422 |
|
|
2,544,951 |
|
|
1,241,569 |
|
|
Liquidity fees |
|
|
— |
|
|
535,575 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,783,710 |
|
|
— |
|
|
Remarketing fees on Preferred Shares |
|
|
— |
|
|
73,393 |
|
|
65,124 |
|
|
41,638 |
|
|
65,918 |
|
|
145,943 |
|
|
105,053 |
|
|
Professional |
|
|
110,723 |
|
|
76,234 |
|
|
44,118 |
|
|
45,013 |
|
|
44,523 |
|
|
80,912 |
|
|
67,045 |
|
|
Accounting services |
|
|
58,458 |
|
|
39,957 |
|
|
37,147 |
|
|
28,119 |
|
|
28,565 |
|
|
71,030 |
|
|
44,905 |
|
|
Transfer agent |
|
|
21,185 |
|
|
19,952 |
|
|
21,626 |
|
|
17,944 |
|
|
18,710 |
|
|
27,289 |
|
|
28,042 |
|
|
Officer and Directors |
|
|
19,139 |
|
|
16,382 |
|
|
12,775 |
|
|
8,893 |
|
|
10,029 |
|
|
31,776 |
|
|
14,020 |
|
|
Custodian |
|
|
12,572 |
|
|
12,916 |
|
|
8,430 |
|
|
6,153 |
|
|
7,721 |
|
|
22,787 |
|
|
12,720 |
|
|
Printing |
|
|
7,812 |
|
|
11,137 |
|
|
9,810 |
|
|
6,201 |
|
|
7,295 |
|
|
24,051 |
|
|
12,576 |
|
|
Registration |
|
|
4,294 |
|
|
4,655 |
|
|
4,897 |
|
|
4,709 |
|
|
4,893 |
|
|
6,834 |
|
|
4,960 |
|
|
Miscellaneous |
|
|
14,165 |
|
|
44,499 |
|
|
22,129 |
|
|
19,330 |
|
|
15,782 |
|
|
59,023 |
|
|
30,542 |
|
|
Total expenses excluding interest expense, fees and amortization of offering costs |
|
|
1,567,472 |
|
|
2,147,667 |
|
|
1,171,113 |
|
|
868,776 |
|
|
999,858 |
|
|
4,798,306 |
|
|
1,561,432 |
|
|
Interest expense, fees and amortization of offering costs1 |
|
|
121,821 |
|
|
569,408 |
|
|
136,716 |
|
|
104,540 |
|
|
102,867 |
|
|
700,189 |
|
|
196,419 |
|
|
Total expenses |
|
|
1,689,293 |
|
|
2,717,075 |
|
|
1,307,829 |
|
|
973,316 |
|
|
1,102,725 |
|
|
5,498,495 |
|
|
1,757,851 |
|
|
Less fees waived by advisor |
|
|
(1,206 |
) |
|
(1,645 |
) |
|
(1,007 |
) |
|
(443 |
) |
|
(75,571 |
) |
|
(4,537 |
) |
|
(1,094 |
) |
|
Total expenses after fees waived |
|
|
1,688,087 |
|
|
2,715,430 |
|
|
1,306,822 |
|
|
972,873 |
|
|
1,027,154 |
|
|
5,493,958 |
|
|
1,756,757 |
|
|
Net investment income |
|
|
13,813,736 |
|
|
10,027,294 |
|
|
7,963,527 |
|
|
5,827,853 |
|
|
5,841,314 |
|
|
16,385,498 |
|
|
11,858,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and Unrealized Gain (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
556,136 |
|
|
888,215 |
|
|
414,190 |
|
|
104,224 |
|
|
150,362 |
|
|
6,500,044 |
|
|
1,153,994 |
|
|
Financial futures contracts |
|
|
(1,300,994 |
) |
|
(2,159,932 |
) |
|
(1,297,139 |
) |
|
(931,647 |
) |
|
(754,665 |
) |
|
(2,567,851 |
) |
|
(2,183,225 |
) |
|
|
|
|
(744,858 |
) |
|
(1,271,717 |
) |
|
(882,949 |
) |
|
(827,423 |
) |
|
(604,303 |
) |
|
3,932,193 |
|
|
(1,029,231 |
) |
|
Net change in unrealized appreciation/depreciation on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments |
|
|
19,036,961 |
|
|
27,093,895 |
|
|
17,578,682 |
|
|
13,379,487 |
|
|
14,501,507 |
|
|
24,357,168 |
|
|
23,091,927 |
|
|
Financial futures contracts |
|
|
362,940 |
|
|
446,573 |
|
|
449,891 |
|
|
334,830 |
|
|
157,614 |
|
|
740,786 |
|
|
627,907 |
|
|
|
|
|
19,399,901 |
|
|
27,540,468 |
|
|
18,028,573 |
|
|
13,714,317 |
|
|
14,659,121 |
|
|
25,097,954 |
|
|
23,719,834 |
|
|
Total realized and unrealized gain |
|
|
18,655,043 |
|
|
26,268,751 |
|
|
17,145,624 |
|
|
12,886,894 |
|
|
14,054,818 |
|
|
29,030,147 |
|
|
22,690,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to AMPS Shareholders From |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
— |
|
|
(86,943 |
) |
|
(155,726 |
) |
|
(66,821 |
) |
|
(104,900 |
) |
|
— |
|
|
(348,331 |
) |
|
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations |
|
$ |
32,468,779 |
|
$ |
36,209,102 |
|
$ |
24,953,425 |
|
$ |
18,647,926 |
|
$ |
19,791,232 |
|
$ |
45,415,645 |
|
$ |
34,200,676 |
|
|
|
|
|
|
|
1 |
Related to TOBs and/or VRDP Shares. |
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BlackRock MuniAssets |
|
BlackRock |
|
||||||||
|
Increase (Decrease) in Net Assets Applicable to Common Shareholders: |
|
Six Months Ended |
|
Year Ended |
|
Six Months Ended |
|
Year Ended |
|
||||
|
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
13,813,736 |
|
$ |
17,901,566 |
|
$ |
10,027,294 |
|
$ |
21,566,988 |
|
|
Net realized loss |
|
|
(744,858 |
) |
|
(1,468,023 |
) |
|
(1,271,717 |
) |
|
(915,429 |
) |
|
Net change in unrealized appreciation/depreciation |
|
|
19,399,901 |
|
|
(8,573,199 |
) |
|
27,540,468 |
|
|
(17,353,928 |
) |
|
Dividend to AMPS Shareholders from net investment income |
|
|
— |
|
|
— |
|
|
(86,943 |
) |
|
(895,488 |
) |
|
Net increase in net assets applicable to Common Shareholders resulting from operations |
|
|
32,468,779 |
|
|
7,860,344 |
|
|
36,209,102 |
|
|
2,402,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to Common Shareholders From |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(13,403,221 |
) |
|
(17,952,389 |
) |
|
(10,072,978 |
) |
|
(20,117,032 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Share Transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value of Common Shares issued from reorganization |
|
|
— |
|
|
176,471,885 |
|
|
— |
|
|
— |
|
|
Reinvestment of common dividends |
|
|
— |
|
|
679,731 |
|
|
— |
|
|
895,425 |
|
|
Net increase in net assets applicable to Common Shareholders derived from capital share transactions |
|
|
— |
|
|
177,151,616 |
|
|
— |
|
|
895,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total increase in net assets applicable to Common Shareholders |
|
|
19,065,558 |
|
|
167,059,571 |
|
|
26,136,124 |
|
|
(16,819,464 |
) |
|
Beginning of period |
|
|
433,890,811 |
|
|
266,831,240 |
|
|
303,263,730 |
|
|
320,083,194 |
|
|
End of period |
|
$ |
452,956,369 |
|
$ |
433,890,811 |
|
$ |
329,399,854 |
|
$ |
303,263,730 |
|
|
Undistributed net investment income |
|
$ |
2,072,885 |
|
$ |
1,662,370 |
|
$ |
5,849,045 |
|
$ |
5,981,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BlackRock |
|
BlackRock |
|
||||||||
|
Increase (Decrease) in Net Assets Applicable to Common Shareholders: |
|
Six Months Ended |
|
Year Ended |
|
Six Months Ended |
|
Year Ended |
|
||||
|
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
7,963,527 |
|
$ |
15,853,128 |
|
$ |
5,827,853 |
|
$ |
11,489,662 |
|
|
Net realized gain (loss) |
|
|
(882,949 |
) |
|
798,443 |
|
|
(827,423 |
) |
|
592,853 |
|
|
Net change in unrealized appreciation/depreciation |
|
|
18,028,573 |
|
|
(14,759,280 |
) |
|
13,714,317 |
|
|
(10,389,967 |
) |
|
Dividends and distributions to AMPS Shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(155,726 |
) |
|
(425,020 |
) |
|
(66,821 |
) |
|
(217,592 |
) |
|
Net realized gain |
|
|
— |
|
|
(45,016 |
) |
|
— |
|
|
(16,958 |
) |
|
Net increase in net assets applicable to Common Shareholders resulting from operations |
|
|
24,953,425 |
|
|
1,422,255 |
|
|
18,647,926 |
|
|
1,457,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends and Distributions to Common Shareholders From |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(7,606,737 |
) |
|
(14,941,651 |
) |
|
(5,489,494 |
) |
|
(10,870,379 |
) |
|
Net realized gain |
|
|
— |
|
|
(1,505,648 |
) |
|
— |
|
|
(807,254 |
) |
|
Decrease in net assets resulting from dividends and distributions to Common Shareholders |
|
|
(7,606,737 |
) |
|
(16,447,299 |
) |
|
(5,489,494 |
) |
|
(11,677,633 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Share Transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of common dividends and distributions |
|
|
372,396 |
|
|
1,260,083 |
|
|
2,983 |
|
|
756,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Applicable to Common Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets applicable to Common Shareholders |
|
|
17,719,084 |
|
|
(13,764,961 |
) |
|
13,161,415 |
|
|
(9,463,054 |
) |
|
Beginning of period |
|
|
205,368,441 |
|
|
219,133,402 |
|
|
154,258,769 |
|
|
163,721,823 |
|
|
End of period |
|
$ |
223,087,525 |
|
$ |
205,368,441 |
|
$ |
167,420,184 |
|
$ |
154,258,769 |
|
|
Undistributed net investment income |
|
$ |
4,461,503 |
|
$ |
4,260,439 |
|
$ |
3,974,723 |
|
$ |
3,703,185 |
|
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
50 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
Statements of Changes in Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BlackRock MuniHoldings |
|
BlackRock Muni Intermediate |
|
||||||||
|
Increase (Decrease) in Net Assets Applicable to Common Shareholders: |
|
Six Months Ended |
|
Year Ended |
|
Six Months Ended |
|
Year Ended |
|
||||
|
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
5,841,314 |
|
$ |
11,766,913 |
|
$ |
16,385,498 |
|
$ |
36,232,994 |
|
|
Net realized gain (loss) |
|
|
(604,303 |
) |
|
(1,327,071 |
) |
|
3,932,193 |
|
|
2,847,724 |
|
|
Net change in unrealized appreciation/depreciation |
|
|
14,659,121 |
|
|
(9,676,582 |
) |
|
25,097,954 |
|
|
(14,744,868 |
) |
|
Dividends to AMPS Shareholders from net investment income |
|
|
(104,900 |
) |
|
(360,146 |
) |
|
— |
|
|
(3,940,263 |
) |
|
Net increase in net assets applicable to Common Shareholders resulting from operations |
|
|
19,791,232 |
|
|
403,114 |
|
|
45,415,645 |
|
|
20,395,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to Common Shareholders From |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(5,752,044 |
) |
|
(11,484,081 |
) |
|
(16,316,987 |
) |
|
(32,019,140 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Share Transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of common dividends |
|
|
— |
|
|
823,393 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Applicable to Common Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets applicable to Common Shareholders. |
|
|
14,039,188 |
|
|
(10,257,574 |
) |
|
29,098,658 |
|
|
(11,623,553 |
) |
|
Beginning of period |
|
|
161,719,630 |
|
|
171,977,204 |
|
|
549,516,301 |
|
|
561,139,854 |
|
|
End of period |
|
$ |
175,758,818 |
|
$ |
161,719,630 |
|
$ |
578,614,959 |
|
$ |
549,516,301 |
|
|
Undistributed net investment income |
|
$ |
3,327,259 |
|
$ |
3,342,889 |
|
$ |
9,470,711 |
|
$ |
9,402,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BlackRock MuniVest |
|
||||
|
Increase (Decrease) in Net Assets Applicable to Common Shareholders: |
|
Six Months Ended |
|
Year Ended |
|
||
|
Operations |
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
11,858,404 |
|
$ |
23,494,758 |
|
|
Net realized loss |
|
|
(1,029,231 |
) |
|
(1,604,962 |
) |
|
Net change in unrealized appreciation/depreciation |
|
|
23,719,834 |
|
|
(18,706,944 |
) |
|
Dividends to AMPS Shareholders from net investment income |
|
|
(348,331 |
) |
|
(921,768 |
) |
|
Net increase in net assets applicable to Common Shareholders resulting from operations |
|
|
34,200,676 |
|
|
2,261,084 |
|
|
|
|
|
|
|
|
|
|
|
Dividends to Common Shareholders From |
|
|
|
|
|
|
|
|
Net investment income |
|
|
(10,996,421 |
) |
|
(21,675,139 |
) |
|
|
|
|
|
|
|
|
|
|
Capital Share Transactions |
|
|
|
|
|
|
|
|
Reinvestment of common dividends |
|
|
1,006,086 |
|
|
2,232,641 |
|
|
|
|
|
|
|
|
|
|
|
Net Assets |
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets applicable to Common Shareholders |
|
|
24,210,341 |
|
|
(17,181,414 |
) |
|
Beginning of period |
|
|
278,283,926 |
|
|
295,465,340 |
|
|
End of period |
|
$ |
302,494,267 |
|
$ |
278,283,926 |
|
|
Undistributed net investment income |
|
$ |
6,509,973 |
|
$ |
5,996,321 |
|
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended October 31, 2011 (Unaudited) |
|
BlackRock |
|
BlackRock |
|
BlackRock
MuniHoldings |
|
BlackRock |
|
BlackRock |
|
BlackRock |
|
||||||
|
Cash Provided by Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets resulting from operations, excluding dividends to AMPS Shareholders |
|
$ |
36,296,045 |
|
$ |
25,109,151 |
|
$ |
18,714,747 |
|
$ |
19,896,132 |
|
$ |
45,415,645 |
|
$ |
34,549,007 |
|
|
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in interest receivable |
|
|
111,698 |
|
|
44,895 |
|
|
14,214 |
|
|
122,860 |
|
|
1,290,644 |
|
|
(23,934 |
) |
|
Decrease in cash pledged as collateral for financial futures contracts |
|
|
330,000 |
|
|
207,998 |
|
|
160,000 |
|
|
120,000 |
|
|
545,000 |
|
|
248,000 |
|
|
Increase in other assets |
|
|
(119,139 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3,176 |
) |
|
— |
|
|
Increase in dividends receivable |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(145 |
) |
|
— |
|
|
Increase in investment advisory fees payable |
|
|
14,038 |
|
|
7,254 |
|
|
632 |
|
|
6,832 |
|
|
15,329 |
|
|
2,793 |
|
|
Decrease in interest expense and fees payable |
|
|
(22,033 |
) |
|
(16,862 |
) |
|
(13,082 |
) |
|
(8,929 |
) |
|
(18,058 |
) |
|
(21,674 |
) |
|
Decrease in other affiliates payable |
|
|
— |
|
|
— |
|
|
— |
|
|
(3,036 |
) |
|
— |
|
|
— |
|
|
Decrease in other accrued expenses payable |
|
|
(287,127 |
) |
|
(36,807 |
) |
|
(35,615 |
) |
|
(20,717 |
) |
|
(14,454 |
) |
|
(39,674 |
) |
|
Decrease in prepaid expenses |
|
|
26,449 |
|
|
13,272 |
|
|
16,004 |
|
|
— |
|
|
42,420 |
|
|
16,405 |
|
|
Increase (decrease) in margin variation payable |
|
|
(31,875 |
) |
|
15,094 |
|
|
8,656 |
|
|
(20,625 |
) |
|
(52,875 |
) |
|
31,500 |
|
|
Increase (decrease) in Officer’s and Directors’ fees payable |
|
|
(81 |
) |
|
428 |
|
|
8,445 |
|
|
5,584 |
|
|
11,215 |
|
|
14,020 |
|
|
Net realized and unrealized loss on investments |
|
|
(27,980,707 |
) |
|
(17,992,872 |
) |
|
(13,483,711 |
) |
|
(14,661,445 |
) |
|
(30,854,035 |
) |
|
(24,783,699 |
) |
|
Amortization of premium and accretion of discount on investments |
|
|
(164,966 |
) |
|
(163,881 |
) |
|
(321,530 |
) |
|
303,210 |
|
|
878,354 |
|
|
125,249 |
|
|
Amortization of deferred offering costs |
|
|
165,105 |
|
|
— |
|
|
— |
|
|
— |
|
|
19,980 |
|
|
— |
|
|
Proceeds from sales of long-term investments |
|
|
61,623,689 |
|
|
30,628,088 |
|
|
20,487,398 |
|
|
41,515,523 |
|
|
165,564,938 |
|
|
23,851,308 |
|
|
Purchases of long-term investments |
|
|
(56,766,917 |
) |
|
(29,894,741 |
) |
|
(20,060,995 |
) |
|
(37,269,074 |
) |
|
(130,741,373 |
) |
|
(26,464,455 |
) |
|
Net proceeds from sales (purchases) of short-term securities |
|
|
(4,803,149 |
) |
|
(86,786 |
) |
|
373,534 |
|
|
(4,070,294 |
) |
|
(35,277,925 |
) |
|
(3,721,855 |
) |
|
Cash provided by operating activities |
|
|
8,391,030 |
|
|
7,834,231 |
|
|
5,868,697 |
|
|
5,916,021 |
|
|
16,821,484 |
|
|
3,782,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Used for Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash receipts from issuance of VRDP Shares |
|
|
142,500,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
287,100,000 |
|
|
— |
|
|
Cash payments on redemption of AMPS |
|
|
(142,575,000 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(287,175,000 |
) |
|
— |
|
|
Cash receipts from TOB trust certificates |
|
|
8,248,676 |
|
|
5,025,000 |
|
|
3,635,000 |
|
|
— |
|
|
— |
|
|
6,320,000 |
|
|
Cash payments for TOB trust certificates |
|
|
(5,884,499 |
) |
|
(5,470,000 |
) |
|
(3,950,000 |
) |
|
(70,000 |
) |
|
— |
|
|
(40,030 |
) |
|
(Increase) decrease in deferred offering costs |
|
|
(462,149 |
) |
|
— |
|
|
— |
|
|
— |
|
|
9,404 |
|
|
— |
|
|
Cash paid for offering costs |
|
|
(68,382 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(317,772 |
) |
|
— |
|
|
Cash dividends paid to Common Shareholders |
|
|
(10,072,978 |
) |
|
(7,234,112 |
) |
|
(5,486,494 |
) |
|
(5,752,044 |
) |
|
(16,316,987 |
) |
|
(9,984,025 |
) |
|
Cash dividends paid to AMPS Shareholders |
|
|
(100,497 |
) |
|
(154,665 |
) |
|
(69,198 |
) |
|
(106,487 |
) |
|
— |
|
|
(78,936 |
) |
|
Increase (decrease) in bank overdraft |
|
|
23,799 |
|
|
(454 |
) |
|
1,995 |
|
|
3,135 |
|
|
(121,129 |
) |
|
— |
|
|
Cash used for financing activities |
|
|
(8,391,030 |
) |
|
(7,834,231 |
) |
|
(5,868,697 |
) |
|
(5,925,396 |
) |
|
(16,821,484 |
) |
|
(3,782,991 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash |
|
|
— |
|
|
— |
|
|
— |
|
|
(9,375 |
) |
|
— |
|
|
— |
|
|
Cash at beginning of period |
|
|
— |
|
|
— |
|
|
— |
|
|
9,375 |
|
|
— |
|
|
— |
|
|
Cash at end of period |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the period for interest and fees |
|
$ |
426,336 |
|
$ |
153,578 |
|
$ |
117,622 |
|
$ |
111,796 |
|
$ |
698,267 |
|
$ |
218,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncash Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital shares issued in reinvestment of dividends paid to Common Shareholders |
|
|
— |
|
$ |
372,396 |
|
$ |
2,983 |
|
|
— |
|
|
— |
|
$ |
1,006,086 |
|
|
|
|
|
|
A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average total assets. |
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
52 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
BlackRock MuniAssets Fund, Inc. (MUA) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months |
|
Year
Ended |
|
Period |
|
Year Ended May 31, |
|
|||||||||||||
|
|
|
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
2006 |
|
||||||||
|
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
12.14 |
|
$ |
12.63 |
|
$ |
10.59 |
|
$ |
12.79 |
|
$ |
13.87 |
|
$ |
13.65 |
|
$ |
13.40 |
|
|
Net investment income1 |
|
|
0.39 |
|
|
0.73 |
|
|
0.80 |
|
|
0.72 |
|
|
0.78 |
|
|
0.82 |
|
|
0.81 |
|
|
Net realized and unrealized gain (loss) |
|
|
0.52 |
|
|
(0.46 |
) |
|
2.06 |
|
|
(2.18 |
) |
|
(1.04 |
) |
|
0.24 |
|
|
0.27 |
|
|
Net increase (decrease) from investment operations |
|
|
0.91 |
|
|
0.27 |
|
|
2.86 |
|
|
(1.46 |
) |
|
(0.26 |
) |
|
1.06 |
|
|
1.08 |
|
|
Dividends and distributions from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.38 |
) |
|
(0.76 |
) |
|
(0.82 |
) |
|
(0.74 |
) |
|
(0.82 |
) |
|
(0.84 |
) |
|
(0.83 |
) |
|
Net realized gain |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.00 |
)2 |
|
— |
|
|
— |
|
|
Total dividends and distributions |
|
|
(0.38 |
) |
|
(0.76 |
) |
|
(0.82 |
) |
|
(0.74 |
) |
|
(0.82 |
) |
|
(0.84 |
) |
|
(0.83 |
) |
|
Net asset value, end of period |
|
$ |
12.67 |
|
$ |
12.14 |
|
$ |
12.63 |
|
$ |
10.59 |
|
$ |
12.79 |
|
$ |
13.87 |
|
$ |
13.65 |
|
|
Market price, end of period |
|
$ |
12.05 |
|
$ |
11.27 |
|
$ |
12.65 |
|
$ |
10.91 |
|
$ |
13.35 |
|
$ |
15.29 |
|
$ |
14.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value |
|
|
7.71 |
%4 |
|
2.31 |
% |
|
27.72 |
% |
|
(11.29 |
)%4 |
|
(1.90 |
)% |
|
7.72 |
% |
|
8.31 |
% |
|
Based on market price |
|
|
10.35 |
%4 |
|
(5.17 |
)% |
|
24.17 |
% |
|
(12.45 |
)%4 |
|
(7.12 |
)% |
|
14.71 |
% |
|
13.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
0.75 |
%5 |
|
0.78 |
% |
|
0.72 |
% |
|
0.77 |
%5 |
|
0.70 |
% |
|
0.68 |
% |
|
0.68 |
% |
|
Total expenses after fees waived and paid indirectly |
|
|
0.75 |
%5 |
|
0.78 |
% |
|
0.72 |
% |
|
0.76 |
%5 |
|
0.69 |
% |
|
0.68 |
% |
|
0.68 |
% |
|
Total expenses after fees waived and paid indirectly and excluding interest expense and fees6 |
|
|
0.70 |
%5 |
|
0.74 |
% |
|
0.67 |
% |
|
0.70 |
%5 |
|
0.66 |
% |
|
0.68 |
% |
|
0.68 |
% |
|
Net investment income |
|
|
6.17 |
%5 |
|
6.07 |
% |
|
6.72 |
% |
|
7.13 |
%5 |
|
5.81 |
% |
|
5.91 |
% |
|
5.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
$ |
452,956 |
|
$ |
433,891 |
|
$ |
266,831 |
|
$ |
221,899 |
|
$ |
266,913 |
|
$ |
287,367 |
|
$ |
280,793 |
|
|
Portfolio turnover |
|
|
12 |
% |
|
24 |
% |
|
44 |
% |
|
23 |
% |
|
23 |
% |
|
25 |
% |
|
17 |
% |
|
|
|
|
|
|
1 |
Based on average shares outstanding. |
|
|
||
|
|
2 |
Amount is less than $(0.01) per share. |
|
|
||
|
|
3 |
Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
|
|
||
|
|
4 |
Aggregate total investment return. |
|
|
||
|
|
5 |
Annualized. |
|
|
||
|
|
6 |
Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
53 |
|
|
|
|
|
|
|
Financial Highlights |
BlackRock MuniEnhanced Fund, Inc. (MEN) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months |
|
|
|
Period |
|
|
|
|||||||||||||
|
|
|
|
Year
Ended |
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
Year Ended January 31, |
|
||||||||||||||||
|
|
|
|
2011 |
|
2010 |
|
|
2009 |
|
2008 |
|
2007 |
|
|||||||||
|
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
10.30 |
|
$ |
10.90 |
|
$ |
9.77 |
|
$ |
9.15 |
|
$ |
11.16 |
|
$ |
11.55 |
|
$ |
11.52 |
|
|
Net investment income1 |
|
|
0.34 |
|
|
0.73 |
|
|
0.75 |
|
|
0.18 |
|
|
0.72 |
|
|
0.78 |
|
|
0.76 |
|
|
Net realized and unrealized gain (loss) |
|
|
0.88 |
|
|
(0.62 |
) |
|
1.04 |
|
|
0.58 |
|
|
(2.02 |
) |
|
(0.41 |
) |
|
0.06 |
|
|
Dividends to AMPS Shareholders from net investment income |
|
|
(0.00 |
)2 |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.01 |
) |
|
(0.19 |
) |
|
(0.24 |
) |
|
(0.22 |
) |
|
Net increase (decrease) from investment operations |
|
|
1.22 |
|
|
0.08 |
|
|
1.76 |
|
|
0.75 |
|
|
(1.49 |
) |
|
0.13 |
|
|
0.60 |
|
|
Dividends to Common Shareholders from net investment income |
|
|
(0.34 |
) |
|
(0.68 |
) |
|
(0.63 |
) |
|
(0.13 |
) |
|
(0.52 |
) |
|
(0.52 |
) |
|
(0.57 |
) |
|
Net asset value, end of period |
|
$ |
11.18 |
|
$ |
10.30 |
|
$ |
10.90 |
|
$ |
9.77 |
|
$ |
9.15 |
|
$ |
11.16 |
|
$ |
11.55 |
|
|
Market price, end of period |
|
$ |
10.81 |
|
$ |
9.99 |
|
$ |
10.81 |
|
$ |
8.88 |
|
$ |
8.31 |
|
$ |
10.66 |
|
$ |
10.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Applicable to Common Shareholders3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value |
|
|
12.08 |
%4 |
|
0.78 |
% |
|
18.76 |
% |
|
8.40 |
%4 |
|
(13.19 |
)% |
|
1.44 |
% |
|
5.66 |
% |
|
Based on market price |
|
|
11.73 |
%4 |
|
(1.44 |
)% |
|
29.59 |
% |
|
8.48 |
%4 |
|
(17.46 |
)% |
|
3.92 |
% |
|
2.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses5 |
|
|
1.70 |
%6 |
|
1.24 |
% |
|
1.20 |
% |
|
1.46 |
%6 |
|
1.77 |
% |
|
1.72 |
% |
|
1.69 |
% |
|
Total expenses after fees waived and paid indirectly5 |
|
|
1.70 |
%6 |
|
1.24 |
% |
|
1.20 |
% |
|
1.45 |
%6 |
|
1.76 |
% |
|
1.72 |
% |
|
1.69 |
% |
|
Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,7 |
|
|
1.34 |
%6 |
|
1.09 |
% |
|
1.04 |
% |
|
1.22 |
%6 |
|
1.18 |
% |
|
1.08 |
% |
|
1.08 |
% |
|
Net investment income |
|
|
6.27 |
%6 |
|
6.89 |
% |
|
7.17 |
% |
|
7.72 |
%6 |
|
7.43 |
% |
|
6.85 |
% |
|
6.57 |
% |
|
Dividends to AMPS Shareholders |
|
|
0.05 |
%6 |
|
0.29 |
% |
|
0.32 |
% |
|
0.56 |
%6 |
|
1.92 |
% |
|
2.08 |
% |
|
1.88 |
% |
|
Net investment income to Common Shareholders |
|
|
6.21 |
%6 |
|
6.60 |
% |
|
6.85 |
% |
|
7.16 |
%6 |
|
5.51 |
% |
|
4.77 |
% |
|
4.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to Common Shareholders, end of period (000) |
|
$ |
329,400 |
|
$ |
303,264 |
|
$ |
320,083 |
|
$ |
287,078 |
|
$ |
268,689 |
|
$ |
327,711 |
|
$ |
339,237 |
|
|
AMPS outstanding at $25,000 liquidation preference, end of period (000) |
|
|
— |
|
$ |
142,575 |
|
$ |
142,575 |
|
$ |
158,850 |
|
$ |
158,850 |
|
$ |
187,000 |
|
$ |
187,000 |
|
|
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |
|
$ |
142,500 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Portfolio turnover |
|
|
10 |
% |
|
9 |
% |
|
23 |
% |
|
6 |
% |
|
24 |
% |
|
18 |
% |
|
31 |
% |
|
Asset coverage per AMPS at $25,000 liquidation preference, end of period |
|
|
— |
|
$ |
78,179 |
|
$ |
81,128 |
|
$ |
70,185 |
|
$ |
67,294 |
|
$ |
68,834 |
|
$ |
70,373 |
|
|
Asset coverage per VRDP Share at $100,000 liquidation value, end of period |
|
$ |
331,158 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
1 |
Based on average shares outstanding. |
|
|
|
|
|
|
2 |
Amount is less than $(0.01) per share. |
|
|
|
|
|
|
3 |
Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
|
|
|
|
|
|
4 |
Aggregate total investment return. |
|
|
|
|
|
|
5 |
Do not reflect the effect of dividends to AMPS Shareholders. |
|
|
|
|
|
|
6 |
Annualized. |
|
|
|
|
|
|
7 |
Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 1 and Note 7of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively. |
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
54 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Financial Highlights |
BlackRock MuniHoldings Fund, Inc. (MHD) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months |
|
|
|
||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
Year Ended April 30, |
|
|||||||||||||||
|
|
|
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
|||||||
|
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
14.67 |
|
$ |
15.75 |
|
$ |
13.27 |
|
$ |
15.20 |
|
$ |
16.51 |
|
$ |
16.14 |
|
|
Net investment income1 |
|
|
0.57 |
|
|
1.14 |
|
|
1.13 |
|
|
1.07 |
|
|
1.16 |
|
|
1.17 |
|
|
Net realized and unrealized gain (loss) |
|
|
1.22 |
|
|
(1.01 |
) |
|
2.39 |
|
|
(1.94 |
) |
|
(1.20 |
) |
|
0.42 |
|
|
Dividends and distributions to AMPS Shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.01 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.18 |
) |
|
(0.31 |
) |
|
(0.32 |
) |
|
Net realized gain |
|
|
— |
|
|
(0.00 |
)2 |
|
(0.00 |
) 2 |
|
(0.01 |
) |
|
(0.03 |
) |
|
— |
|
|
Net increase (decrease) from investment operations |
|
|
1.78 |
|
|
0.10 |
|
|
3.49 |
|
|
(1.06 |
) |
|
(0.38 |
) |
|
1.27 |
|
|
Dividends and distributions to Common Shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.54 |
) |
|
(1.07 |
) |
|
(0.99 |
) |
|
(0.85 |
) |
|
(0.85 |
) |
|
(0.90 |
) |
|
Net realized gain |
|
|
— |
|
|
(0.11 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.08 |
) |
|
— |
|
|
Total dividends and distributions to Common Shareholders |
|
|
(0.54 |
) |
|
(1.18 |
) |
|
(1.01 |
) |
|
(0.87 |
) |
|
(0.93 |
) |
|
(0.90 |
) |
|
Net asset value, end of period |
|
$ |
15.91 |
|
$ |
14.67 |
|
$ |
15.75 |
|
$ |
13.27 |
|
$ |
15.20 |
|
$ |
16.51 |
|
|
Market price, end of period |
|
$ |
15.90 |
|
$ |
14.51 |
|
$ |
15.70 |
|
$ |
11.97 |
|
$ |
14.77 |
|
$ |
16.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Applicable to Common Shareholders3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value |
|
|
12.30 |
%4 |
|
0.57 |
% |
|
27.31 |
% |
|
(6.24 |
)% |
|
(2.08 |
)% |
|
8.06 |
% |
|
Based on market price |
|
|
13.46 |
%4 |
|
(0.21 |
)% |
|
40.68 |
% |
|
(12.97 |
)% |
|
(4.74 |
)% |
|
7.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses4 |
|
|
1.20 |
%6 |
|
1.28 |
% |
|
1.25 |
% |
|
1.65 |
% |
|
1.56 |
% |
|
1.54 |
% |
|
Total expenses after fees waived and paid indirectly4 |
|
|
1.20 |
%6 |
|
1.28 |
% |
|
1.25 |
% |
|
1.64 |
% |
|
1.56 |
% |
|
1.54 |
% |
|
Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,5 |
|
|
1.08 |
%6 |
|
1.13 |
% |
|
1.11 |
% |
|
1.25 |
% |
|
1.20 |
% |
|
1.17 |
% |
|
Net investment income4 |
|
|
7.33 |
%6 |
|
7.41 |
% |
|
7.67 |
% |
|
7.98 |
% |
|
7.27 |
% |
|
7.14 |
% |
|
Dividends to AMPS Shareholders |
|
|
0.14 |
%6 |
|
0.20 |
% |
|
0.24 |
% |
|
1.32 |
% |
|
1.96 |
% |
|
1.93 |
% |
|
Net investment income to Common Shareholders |
|
|
7.19 |
%6 |
|
7.21 |
% |
|
7.43 |
% |
|
6.66 |
% |
|
5.31 |
% |
|
5.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to Common Shareholders, end of period (000) |
|
$ |
223,088 |
|
$ |
205,368 |
|
$ |
219,133 |
|
$ |
184,685 |
|
$ |
211,429 |
|
$ |
229,376 |
|
|
AMPS outstanding at $25,000 liquidation preference, end of period (000) |
|
$ |
83,700 |
|
$ |
83,700 |
|
$ |
83,700 |
|
$ |
91,925 |
|
$ |
125,000 |
|
$ |
125,000 |
|
|
Portfolio turnover |
|
|
9 |
% |
|
15 |
% |
|
41 |
% |
|
19 |
% |
|
30 |
% |
|
20 |
% |
|
Asset coverage per AMPS at $25,000 liquidation preference, end of period |
|
$ |
91,635 |
|
$ |
86,342 |
|
$ |
90,454 |
|
$ |
75,230 |
|
$ |
67,294 |
|
$ |
70,889 |
|
|
|
|
|
|
|
1 |
Based on average shares outstanding. |
|
|
|
|
|
|
2 |
Amount is less than $(0.01) per share. |
|
|
|
|
|
|
3 |
Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
|
|
|
|
|
|
4 |
Aggregate total investment return. |
|
|
|
|
|
|
5 |
Do not reflect the effect of dividends to AMPS Shareholders. |
|
|
|
|
|
|
6 |
Annualized. |
|
|
|
|
|
|
7 |
Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
55 |
|
|
|
|
|
|
|
Financial Highlights |
BlackRock MuniHoldings Fund II, Inc. (MUH) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months |
|
|
|
|
|
|
|
Period |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
Year
Ended |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Year Ended July 31, |
||||||||||||||||||
|
|
|
|
2011 |
|
2010 |
|
|
2008 |
|
2007 |
|
2006 |
|
|||||||||
|
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
13.74 |
|
$ |
14.65 |
|
$ |
12.47 |
|
$ |
13.66 |
|
$ |
14.78 |
|
$ |
14.82 |
|
$ |
15.03 |
|
|
Net investment income1 |
|
|
0.52 |
|
|
1.03 |
|
|
1.02 |
|
|
0.72 |
|
|
1.04 |
|
|
1.05 |
|
|
1.04 |
|
|
Net realized and unrealized gain (loss) |
|
|
1.15 |
|
|
(0.88 |
) |
|
2.08 |
|
|
(1.22 |
) |
|
(1.14 |
) |
|
(0.05 |
) |
|
(0.11 |
) |
|
Dividends to AMPS Shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.10 |
) |
|
(0.26 |
) |
|
(0.27 |
) |
|
(0.23 |
) |
|
Net realized gain |
|
|
— |
|
|
(0.00 |
) 2 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Net increase (decrease) from investment operations |
|
|
1.66 |
|
|
0.13 |
|
|
3.08 |
|
|
(0.60 |
) |
|
(0.36 |
) |
|
0.73 |
|
|
0.70 |
|
|
Dividends and distributions to Common Shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.49 |
) |
|
(0.97 |
) |
|
(0.90 |
) |
|
(0.59 |
) |
|
(0.76 |
) |
|
(0.77 |
) |
|
(0.91 |
) |
|
Net realized gain |
|
|
— |
|
|
(0.07 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Total dividends and distributions to Common Shareholders |
|
|
(0.49 |
) |
|
(1.04 |
) |
|
(0.90 |
) |
|
(0.59 |
) |
|
(0.76 |
) |
|
(0.77 |
) |
|
(0.91 |
) |
|
Net asset value, end of period |
|
$ |
14.91 |
|
$ |
13.74 |
|
$ |
14.65 |
|
$ |
12.47 |
|
$ |
13.66 |
|
$ |
14.78 |
|
$ |
14.82 |
|
|
Market price, end of period |
|
$ |
15.05 |
|
$ |
13.35 |
|
$ |
14.68 |
|
$ |
11.33 |
|
$ |
13.01 |
|
$ |
13.99 |
|
$ |
14.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Applicable to Common Shareholders3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value |
|
|
12.25 |
%4 |
|
0.92 |
% |
|
25.71 |
% |
|
(3.55 |
)%4 |
|
(2.30 |
) % |
|
5.08 |
% |
|
4.89 |
% |
|
Based on market price |
|
|
16.61 |
%4 |
|
(2.14 |
)% |
|
38.64 |
% |
|
(7.99 |
)%4 |
|
(1.69 |
) % |
|
4.39 |
% |
|
(1.50 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses5 |
|
|
1.19 |
%6 |
|
1.23 |
% |
|
1.25 |
% |
|
1.60 |
%6 |
|
1.55 |
% |
|
1.63 |
% |
|
1.44 |
% |
|
Total expenses after fees waived5 |
|
|
1.19 |
%6 |
|
1.23 |
% |
|
1.25 |
% |
|
1.60 |
%6 |
|
1.55 |
% |
|
1.63 |
% |
|
1.44 |
% |
|
Total expenses after fees waived and excluding interest expense and fees5,7 |
|
|
1.07 |
%6 |
|
1.07 |
% |
|
1.10 |
% |
|
1.22 |
%6 |
|
1.18 |
% |
|
1.19 |
% |
|
1.18 |
% |
|
Net investment income5 |
|
|
7.15 |
%6 |
|
7.18 |
% |
|
7.41 |
% |
|
7.84 |
%6 |
|
7.07 |
% |
|
6.97 |
% |
|
7.04 |
% |
|
Dividends to AMPS Shareholders |
|
|
0.08 |
%6 |
|
0.14 |
% |
|
0.16 |
% |
|
1.07 |
%6 |
|
1.79 |
% |
|
1.82 |
% |
|
1.55 |
% |
|
Net investment income to Common Shareholders |
|
|
7.07 |
%6 |
|
7.04 |
% |
|
7.25 |
% |
|
6.77 |
%6 |
|
5.28 |
% |
|
5.15 |
% |
|
5.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to Common Shareholders, end of period (000) |
|
$ |
167,420 |
|
$ |
154,259 |
|
$ |
163,722 |
|
$ |
139,377 |
|
$ |
152,633 |
|
$ |
165,185 |
|
$ |
165,565 |
|
|
AMPS outstanding at $25,000 liquidation preference, end of period (000) |
|
$ |
55,050 |
|
$ |
55,050 |
|
$ |
55,050 |
|
$ |
61,000 |
|
$ |
61,000 |
|
$ |
87,000 |
|
$ |
87,000 |
|
|
Portfolio turnover |
|
|
8 |
% |
|
15 |
% |
|
41 |
% |
|
19 |
% |
|
28 |
% |
|
15 |
% |
|
49 |
% |
|
Asset coverage per AMPS at $25,000 liquidation preference, end of period |
|
$ |
101,031 |
|
$ |
95,056 |
|
$ |
99,353 |
|
$ |
81,123 |
|
$ |
87,562 |
|
$ |
72,478 |
|
$ |
72,555 |
|
|
|
|
|
|
|
1 |
Based on average shares outstanding. |
|
|
|
|
|
|
2 |
Amount is less than $(0.01) per share. |
|
|
|
|
|
|
3 |
Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
|
|
|
|
|
|
4 |
Aggregate total investment return. |
|
|
|
|
|
|
5 |
Do not reflect the effect of dividends to AMPS Shareholders. |
|
|
|
|
|
|
6 |
Annualized. |
|
|
|
|
|
|
7 |
Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
56 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Financial Highlights |
BlackRock MuniHoldings Quality Fund, Inc. (MUS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
Year Ended April 30, |
|
|||||||||||||||
|
|
|
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
|||||||
|
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
12.48 |
|
$ |
13.34 |
|
$ |
12.27 |
|
$ |
13.31 |
|
$ |
14.10 |
|
$ |
13.80 |
|
|
Net investment income1 |
|
|
0.45 |
|
|
0.91 |
|
|
0.94 |
|
|
0.93 |
|
|
1.05 |
|
|
0.93 |
|
|
Net realized and unrealized gain (loss) |
|
|
1.09 |
|
|
(0.85 |
) |
|
0.97 |
|
|
(1.20 |
) |
|
(0.87 |
) |
|
0.36 |
|
|
Dividend to AMPS Shareholders from net investment income |
|
|
(0.01 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.19 |
) |
|
(0.38 |
) |
|
(0.36 |
) |
|
Net increase (decrease) from investment operations |
|
|
1.53 |
|
|
0.03 |
|
|
1.88 |
|
|
(0.46 |
) |
|
(0.20 |
) |
|
0.93 |
|
|
Dividends to Common Shareholders from net investment income |
|
|
(0.44 |
) |
|
(0.89 |
) |
|
(0.81 |
) |
|
(0.58 |
) |
|
(0.59 |
) |
|
(0.63 |
) |
|
Net asset value, end of period |
|
$ |
13.57 |
|
$ |
12.48 |
|
$ |
13.34 |
|
$ |
12.27 |
|
$ |
13.31 |
|
$ |
14.10 |
|
|
Market price, end of period |
|
$ |
12.99 |
|
$ |
12.31 |
|
$ |
13.40 |
|
$ |
10.87 |
|
$ |
11.97 |
|
$ |
13.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Applicable to Common Shareholders2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value |
|
|
12.51 |
%3 |
|
0.21 |
% |
|
16.05 |
% |
|
(2.52 |
) % |
|
(0.95 |
) % |
|
7.29 |
% |
|
Based on market price |
|
|
9.19 |
%3 |
|
(1.60 |
)% |
|
31.59 |
% |
|
(3.97 |
) % |
|
(4.34 |
) % |
|
5.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common Shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses4 |
|
|
1.29 |
%5 |
|
1.34 |
% |
|
1.36 |
% |
|
1.88 |
% |
|
1.64 |
% |
|
1.67 |
% |
|
Total expenses after fees waived4 |
|
|
1.20 |
%5 |
|
1.25 |
% |
|
1.20 |
% |
|
1.65 |
% |
|
1.51 |
% |
|
1.56 |
% |
|
Total expenses after fees waived and excluding interest expense and fees4,6 |
|
|
1.08 |
%5 |
|
1.10 |
% |
|
1.04 |
% |
|
1.17 |
% |
|
1.27 |
% |
|
1.23 |
% |
|
Net investment income4 |
|
|
6.83 |
%5 |
|
7.04 |
% |
|
7.23 |
% |
|
7.69 |
% |
|
7.72 |
% |
|
6.62 |
% |
|
Dividends to AMPS Shareholders |
|
|
0.12 |
%5 |
|
0.21 |
% |
|
0.24 |
% |
|
1.61 |
% |
|
2.80 |
% |
|
2.59 |
% |
|
Net investment income to Common Shareholders |
|
|
6.71 |
%5 |
|
6.83 |
% |
|
6.99 |
% |
|
6.08 |
% |
|
4.92 |
% |
|
4.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to Common Shareholders, end of period (000) |
|
$ |
175,759 |
|
$ |
161,720 |
|
$ |
171,977 |
|
$ |
158,061 |
|
$ |
171,510 |
|
$ |
181,640 |
|
|
AMPS outstanding at $25,000 liquidation preference, end of period (000) |
|
$ |
87,000 |
|
$ |
87,000 |
|
$ |
87,000 |
|
$ |
94,200 |
|
$ |
134,000 |
|
$ |
134,000 |
|
|
Portfolio turnover |
|
|
15 |
% |
|
28 |
% |
|
22 |
% |
|
35 |
% |
|
57 |
% |
|
29 |
% |
|
Asset coverage per AMPS at $25,000 liquidation preference, end of period |
|
$ |
75,505 |
|
$ |
71,472 |
|
$ |
74,420 |
|
$ |
66,951 |
|
$ |
57,008 |
|
$ |
58,903 |
|
|
|
|
|
|
|
1 |
Based on average shares outstanding. |
|
|
|
|
|
|
2 |
Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
|
|
|
|
|
|
3 |
Aggregate total investment return. |
|
|
|
|
|
|
4 |
Do not reflect the effect of dividends to AMPS Shareholders. |
|
|
|
|
|
|
5 |
Annualized. |
|
|
|
|
|
|
6 |
Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
57 |
|
|
|
|
|
|
|
Financial Highlights |
BlackRock Muni Intermediate Duration Fund, Inc. (MUI) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months |
|
Year Ended April 30, |
|
Period |
|
Year Ended May 31, |
|
|||||||||||||
|
|
|
(Unaudited) |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
2006 |
|
|||||||
|
Per Share Operating Performance |
|
|
|
|
|
|
|
|||||||||||||||
|
Net asset value, beginning of period |
|
$ |
14.45 |
|
$ |
14.75 |
|
$ |
13.05 |
|
$ |
14.45 |
|
$ |
15.10 |
|
$ |
15.07 |
|
$ |
15.51 |
|
|
Net investment income1 |
|
|
0.43 |
|
|
0.95 |
|
|
1.02 |
|
|
0.89 |
|
|
1.04 |
|
|
1.03 |
|
|
1.04 |
|
|
Net realized and unrealized gain (loss) |
|
|
0.76 |
|
|
(0.31 |
) |
|
1.57 |
|
|
(1.42 |
) |
|
(0.63 |
) |
|
0.18 |
|
|
(0.15 |
) |
|
Dividends and distributions to AMPS Shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
— |
|
|
(0.10 |
) |
|
(0.11 |
) |
|
(0.23 |
) |
|
(0.33 |
) |
|
(0.28 |
) |
|
(0.21 |
) |
|
Net realized gain |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.04 |
) |
|
(0.04 |
) |
|
Net increase (decrease) from investment operations |
|
|
1.19 |
|
|
0.54 |
|
|
2.48 |
|
|
(0.76 |
) |
|
0.08 |
|
|
0.89 |
|
|
0.64 |
|
|
Dividends and distributions to Common Shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.43 |
) |
|
(0.84 |
) |
|
(0.78 |
) |
|
(0.64 |
) |
|
(0.73 |
) |
|
(0.74 |
) |
|
(0.84 |
) |
|
Net realized gain |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.12 |
) |
|
(0.23 |
) |
|
Total dividends and distributions to Common Shareholders |
|
|
(0.43 |
) |
|
(0.84 |
) |
|
(0.78 |
) |
|
(0.64 |
) |
|
(0.73 |
) |
|
(0.86 |
) |
|
(1.07 |
) |
|
Capital charges with respect to issuance of AMPS shares |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.01 |
) |
|
Net asset value, end of period |
|
$ |
15.21 |
|
$ |
14.45 |
|
$ |
14.75 |
|
$ |
13.05 |
|
$ |
14.45 |
|
$ |
15.10 |
|
$ |
15.07 |
|
|
Market price, end of period |
|
$ |
14.61 |
|
$ |
13.65 |
|
$ |
14.13 |
|
$ |
11.77 |
|
$ |
13.70 |
|
$ |
14.85 |
|
$ |
14.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return |
|
|
||||||||||||||||||||
|
Based on net asset value |
|
|
8.44 |
%3 |
|
3.86 |
% |
|
19.85 |
% |
|
(4.56 |
)%3 |
|
0.86 |
% |
|
6.14 |
% |
|
4.71 |
% |
|
Based on market price |
|
|
10.27 |
%3 |
|
2.41 |
% |
|
27.29 |
% |
|
(9.21 |
)%3 |
|
(2.76 |
)% |
|
8.34 |
% |
|
12.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net |
|
|
|
|
|
|
||||||||||||||||
|
Total expenses4 |
|
|
1.92 |
%5 |
|
1.45 |
% |
|
1.20 |
% |
|
1.44 |
%5 |
|
1.30 |
% |
|
1.31 |
% |
|
1.24 |
% |
|
Total expenses after fees waived and paid indirectly4 |
|
|
1.92 |
%5 |
|
1.43 |
% |
|
1.10 |
% |
|
1.25 |
%5 |
|
1.07 |
% |
|
1.07 |
% |
|
1.00 |
% |
|
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs4,6 |
|
|
1.68 |
%5 |
|
1.30 |
% |
|
1.01 |
% |
|
1.02 |
%5 |
|
0.90 |
% |
|
0.87 |
% |
|
0.87 |
% |
|
Net investment income4 |
|
|
5.73 |
%5 |
|
6.48 |
% |
|
7.22 |
% |
|
7.46 |
%5 |
|
6.97 |
% |
|
6.71 |
% |
|
6.82 |
% |
|
Dividends to AMPS Shareholders |
|
|
— |
|
|
0.70 |
% |
|
0.81 |
% |
|
1.94 |
%5 |
|
2.23 |
% |
|
1.80 |
% |
|
1.36 |
% |
|
Net investment income to Common Shareholders |
|
|
5.73 |
%5 |
|
5.78 |
% |
|
6.41 |
% |
|
5.52 |
%5 |
|
4.74 |
% |
|
4.91 |
% |
|
5.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net assets applicable to Common Shareholders, end of period (000) |
|
$ |
578,615 |
|
$ |
549,516 |
|
$ |
561,140 |
|
$ |
496,247 |
|
$ |
549,415 |
|
$ |
574,225 |
|
$ |
573,034 |
|
|
AMPS outstanding at $25,000 liquidation preference, end of period (000) |
|
|
— |
|
|
— |
|
$ |
287,175 |
|
$ |
287,175 |
|
$ |
320,000 |
|
$ |
320,000 |
|
$ |
320,000 |
|
|
VRDP Shares outstanding at $100,000 liquidation value, end of period |
|
$ |
287,100 |
|
$ |
287,100 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Portfolio turnover |
|
|
15 |
% |
|
21 |
% |
|
29 |
% |
|
13 |
% |
|
14 |
% |
|
12 |
% |
|
49 |
% |
|
Asset coverage per AMPS at $25,000 liquidation preference, end of period |
|
|
— |
|
|
— |
|
$ |
73,857 |
|
$ |
68,207 |
|
$ |
67,941 |
|
$ |
69,875 |
|
$ |
69,781 |
|
|
Asset coverage per VRDP Share at $100,000 liquidation value, end of period |
|
$ |
301,537 |
|
$ |
291,402 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
1 |
Based on average shares outstanding. |
|
|
|
|
|
|
2 |
Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
|
|
|
|
|
|
3 |
Aggregate total investment return. |
|
|
|
|
|
|
4 |
Do not reflect the effect of dividends to AMPS Shareholders. |
|
|
|
|
|
|
5 |
Annualized. |
|
|
|
|
|
|
6 |
Interest Expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively. |
|
|
|
|
|
See Notes to Financial Statements. |
||
|
|
|
|
|
58 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
|
|
Financial Highlights |
BlackRock MuniVest Fund II, Inc. (MVT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months |
|
Year
Ended |
|
Period |
|
Year Ended October 31, |
|
|||||||||||||
|
|
|
(Unaudited) |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
2006 |
|
|||||||
|
Per Share Operating Performance |
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Net asset value, beginning of period |
|
$ |
13.47 |
|
$ |
14.41 |
|
$ |
11.95 |
|
$ |
10.95 |
|
$ |
14.49 |
|
$ |
15.35 |
|
$ |
15.13 |
|
|
Net investment income1 |
|
|
0.57 |
|
|
1.14 |
|
|
1.18 |
|
|
0.53 |
|
|
1.12 |
|
|
1.16 |
|
|
1.16 |
|
|
Net realized and unrealized gain (loss) |
|
|
1.10 |
|
|
(0.99 |
) |
|
2.32 |
|
|
0.95 |
|
|
(3.49 |
) |
|
(0.84 |
) |
|
0.35 |
|
|
Dividends to AMPS Shareholders from net investment income |
|
|
(0.02 |
) |
|
(0.04 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.32 |
) |
|
(0.32 |
) |
|
(0.29 |
) |
|
Net increase (decrease) from investment operations |
|
|
1.65 |
|
|
0.11 |
|
|
3.45 |
|
|
1.43 |
|
|
(2.69 |
) |
|
— |
|
|
1.22 |
|
|
Dividends to Common Shareholders from net investment income |
|
|
(0.53 |
) |
|
(1.05 |
) |
|
(0.99 |
) |
|
(0.43 |
) |
|
(0.85 |
) |
|
(0.86 |
) |
|
(1.00 |
) |
|
Net asset value, end of period |
|
$ |
14.59 |
|
$ |
13.47 |
|
$ |
14.41 |
|
$ |
11.95 |
|
$ |
10.95 |
|
$ |
14.49 |
|
$ |
15.35 |
|
|
Market price, end of period |
|
$ |
15.16 |
|
$ |
13.72 |
|
$ |
14.94 |
|
$ |
11.65 |
|
$ |
9.75 |
|
$ |
13.91 |
|
$ |
16.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return |
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Based on net asset value |
|
|
12.39 |
%3 |
|
0.73 |
% |
|
29.75 |
% |
|
13.71 |
%3 |
|
(19.33 |
)% |
|
(0.02 |
)% |
|
8.36 |
% |
|
Based on market price |
|
|
14.65 |
%3 |
|
(1.04 |
)% |
|
37.99 |
% |
|
24.49 |
%3 |
|
(25.18 |
)% |
|
(9.56 |
)% |
|
12.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net |
|
|
|
|
|
|
|
|||||||||||||||
|
Total expenses4 |
|
|
1.19 |
%5 |
|
1.23 |
% |
|
1.25 |
% |
|
1.51 |
%5 |
|
1.67 |
% |
|
1.67 |
% |
|
1.61 |
% |
|
Total expenses after fees waived and excluding interest expense and fees4,6 |
|
|
1.06 |
%5 |
|
1.07 |
% |
|
1.10 |
% |
|
1.26 |
%5 |
|
1.16 |
% |
|
1.12 |
% |
|
1.11 |
% |
|
Net investment income4 |
|
|
8.05 |
%5 |
|
8.14 |
% |
|
8.72 |
% |
|
9.77 |
%5 |
|
8.03 |
% |
|
7.74 |
% |
|
7.70 |
% |
|
Dividends to AMPS Shareholders |
|
|
0.24 |
%5 |
|
0.32 |
% |
|
0.36 |
% |
|
0.95 |
%5 |
|
2.31 |
% |
|
2.11 |
% |
|
1.90 |
% |
|
Net investment income to Common Shareholders |
|
|
7.81 |
%5 |
|
7.82 |
% |
|
8.36 |
% |
|
8.82 |
%5 |
|
5.72 |
% |
|
5.63 |
% |
|
5.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to Common Shareholders, end of period (000) |
|
$ |
302,494 |
|
$ |
278,284 |
|
$ |
295,465 |
|
$ |
243,583 |
|
$ |
223,210 |
|
$ |
293,836 |
|
$ |
309,975 |
|
|
AMPS outstanding at $25,000 liquidation preference, end of period (000) |
|
$ |
140,000 |
|
$ |
140,000 |
|
$ |
140,000 |
|
$ |
150,800 |
|
$ |
150,800 |
|
$ |
175,000 |
|
$ |
175,000 |
|
|
Portfolio turnover |
|
|
5 |
% |
|
16 |
% |
|
30 |
% |
|
9 |
% |
|
49 |
% |
|
43 |
% |
|
60 |
% |
|
Asset coverage per AMPS at $25,000 liquidation preference, end of period |
|
$ |
79,017 |
|
$ |
74,698 |
|
$ |
77,767 |
|
$ |
65,388 |
|
$ |
62,019 |
|
$ |
67,004 |
|
$ |
69,307 |
|
|
|
|
|
|
|
1 |
Based on average shares outstanding. |
|
|
|
|
|
|
2 |
Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
|
|
|
|
|
|
3 |
Aggregate total investment return. |
|
|
|
|
|
|
4 |
Do not reflect the effect of dividends to AMPS Shareholders. |
|
|
|
|
|
|
5 |
Annualized. |
|
|
|
|
|
|
6 |
Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
|
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
59 |
|
|
|
|
1. Organization and Significant Accounting Policies:
BlackRock MuniAssets Fund, Inc. (“MUA”), BlackRock MuniEnhanced Fund, Inc. (“MEN”), BlackRock MuniHoldings Fund, Inc. (“MHD”), BlackRock Muni-Holdings Fund II, Inc. (“MUH”), BlackRock MuniHoldings Quality Fund, Inc. (“MUS”), BlackRock Muni Intermediate Duration Fund, Inc. (“MUI”) and BlackRock MuniVest Fund II, Inc. (“MVT”) (collectively, the “Funds”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as non-diversified, closed-end management investment companies. The Funds are organized as Maryland corporations. The Funds’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Boards 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 NAVs of their Common Shares on a daily basis.
The following is a summary of significant accounting policies followed by the Funds:
Reorganization: The Board and shareholders of MUA and the Board and shareholders of BlackRock Apex Municipal Fund, Inc. (“APX”) approved the reorganization of APX into MUA pursuant to which MUA acquired substantially all of the assets and substantially all of the liabilities of APX in exchange for an equal aggregate value of newly-issued Common Shares of MUA.
Each Common Shareholder of APX received Common Shares of MUA in an amount equal to the aggregate net asset value of such Common Shareholder’s APX Common Shares, as determined at the close of business on February 25, 2011, less the costs of APX’s reorganization (although cash was distributed for any fractional Common Shares).
The reorganization was accomplished by a tax-free exchange of Common Shares of MUA in the following amounts and at the following conversion ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
Target Fund |
|
Shares
Prior to |
|
Conversion |
|
Shares
of |
|
|||
|
APX |
|
|
19,990,638 |
|
|
0.72861057 |
|
|
14,565,391 |
|
APX’s net assets and composition of net assets on February 25, 2011, the date of the merger, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Target Fund |
|
Net Assets |
|
Paid-in |
|
Undistributed |
|
|||
|
APX |
|
$ |
176,471,885 |
|
$ |
192,252,646 |
|
$ |
670,780 |
|
|
|
|
|
|
|
|
|
|
|
Target Fund |
|
Accumulated |
|
Net Unrealized |
|
||
|
APX |
|
$ |
(8,314,694 |
) |
$ |
(8,136,847 |
) |
For financial reporting purposes, assets received and shares issued by MUA were recorded at fair value; however, the cost basis of the investments received from APX was carried forward to align ongoing reporting of MUA’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
The aggregate net assets of MUA immediately after the acquisition amounted to $433,042,831. APX’s fair value and cost of investments prior to the reorganization w $173,035,802 and $181,172,649, respectively.
The purpose of this transaction was to combine two funds managed by the Manager (as defined in Note 3 below) with the same or substantially similar (but not identical) investment objectives, investment policies, strategies, risks and restrictions. The reorganization was a tax-free event and was effective on February 28, 2011.
Assuming the acquisition had been completed on May 1, 2010, the beginning of the annual reporting period of MUA, the pro forma results of operations for the year ended April 30, 2011, are as follows:
|
|
|
|
• |
Net investment income: $26,815,648 |
|
|
|
|
• |
Net realized and change in unrealized loss on investments: $(16,410,597) |
|
|
|
|
• |
Net increase in net assets applicable to Common Shareholders resulting from operations: $10,405,051 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of MUA that have been included in MUA’s Statement of Operations since February 25, 2011.
Valuation: US GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds fair value their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or if a price is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that each Fund might reasonably expect to receive from the current sale of
|
|
|
|
|
|
|
|
|
60 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
Notes to Financial Statements (continued) |
that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.
Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.
Forward Commitments and When-Issued Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, the Funds are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.
Municipal Bonds Transferred to TOBs: The Funds leverage their assets through the use of TOBs. A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Fund has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Fund include the right of a Fund (1) to cause the holders of a proportional share of the short-term floating rate certificates to tender their certificates at par, including during instances of a rise in short-term interest rates, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to a Fund. The TOB may also be terminated without the consent of a Fund upon the occurrence of certain events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond or the inability to remarket the short-term floating rate certificates to third party investors. During the six months ended October 31, 2011, no TOBs that the Funds participated in were terminated without the consent of the Funds.
The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to a Fund in exchange for TOB trust certificates. The Funds typically invests the cash in additional municipal bonds. Each Fund’s transfer of the municipal bonds to a TOB is accounted for as a secured borrowing, therefore the municipal bonds deposited into a TOB are presented in the Funds’ Schedules of Investments and TOB trust certificates are shown in other liabilities in the Statements of Assets and Liabilities.
Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Funds on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. The short-term floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At October 31, 2011, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for TOB trust certificates and the range of interest rates on the liability for TOB trust certificates were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying |
|
Liability
for |
|
Range
of |
|
||
|
MUA |
|
$ |
60,851,654 |
|
$ |
31,890,809 |
|
0.14% – 0.41% |
|
|
MEN |
|
$ |
127,047,770 |
|
$ |
63,947,084 |
|
0.14% – 0.24% |
|
|
MHD |
|
$ |
79,992,030 |
|
$ |
43,041,920 |
|
0.13% – 0.27% |
|
|
MUH |
|
$ |
61,568,484 |
|
$ |
33,301,675 |
|
0.13% – 0.27% |
|
|
MUS |
|
$ |
61,004,892 |
|
$ |
31,595,414 |
|
0.14% – 0.37% |
|
|
MUI |
|
$ |
125,111,898 |
|
$ |
66,608,812 |
|
0.14% – 0.27% |
|
|
MVT |
|
$ |
130,515,180 |
|
$ |
68,324,387 |
|
0.13% – 0.31% |
|
For the six months ended October 31, 2011, the Funds’ average TOB trust certificates outstanding and the daily weighted average interest rate, including fees, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Average
TOB Trust |
|
Daily
Weighted |
|
||
|
MUA |
|
$ |
31,889,987 |
|
0.55 |
% |
|
|
MEN |
|
$ |
62,650,216 |
|
0.55 |
% |
|
|
MHD |
|
$ |
43,014,029 |
|
0.55 |
% |
|
|
MUH |
|
$ |
33,286,898 |
|
0.55 |
% |
|
|
MUS |
|
$ |
31,638,256 |
|
0.55 |
% |
|
|
MUI |
|
$ |
66,617,419 |
|
0.55 |
% |
|
|
MVT |
|
$ |
62,057,395 |
|
0.55 |
% |
|
Should short-term interest rates rise, the Funds’ investments in TOBs may adversely affect the Funds’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect the Funds’ NAVs per share.
Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Funds either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts), the Funds will, consistent with SEC rules and/or certain interpretive letters issued by SEC, segregate collateral or designate on their books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party to such transactions has requirements to deliver/deposit securities as collateral for certain investments.
|
|
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
61 |
|
|
|
|
|
Notes to Financial Statements (continued) |
Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.
Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to AMPS and VRDP Shareholders are accrued and determined as described in Note 7.
Income Taxes: It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.
Each Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s US federal tax returns remains open for each of the four periods ended as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Year Ended |
|
Period |
|
Year Ended |
|
MUA |
|
April 30, 2011 |
|
April 30, 2010 |
|
June 1, 2008 to |
|
May 31, 2008 |
|
|
|
|
|
|
|
April 30, 2009 |
|
|
|
MEN |
|
April 30, 2011 |
|
April 30, 2010 |
|
February 1, 2009 |
|
January 31, |
|
|
|
|
|
|
|
to April 30, 2009 |
|
2009 |
|
MHD |
|
April 30, 2011 |
|
April 30, 2010 |
|
April 30, 2009 |
|
April 30, 2008 |
|
MUH |
|
April 30, 2011 |
|
April 30, 2010 |
|
August 1, 2008 to |
|
July 31, 2008 |
|
|
|
|
|
|
|
April 30, 2009 |
|
|
|
MUS |
|
April 30, 2011 |
|
April 30, 2010 |
|
April 30, 2009 |
|
April 30, 2008 |
|
MUI |
|
April 30, 2011 |
|
April 30, 2010 |
|
June 1, 2008 to |
|
May 31, 2008 |
|
|
|
|
|
|
|
April 30, 2009 |
|
|
|
MVT |
|
April 30, 2011 |
|
April 30, 2010 |
|
November 1, 2008 |
|
October 31, |
|
|
|
|
|
|
|
to April 30, 2009 |
|
2008 |
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 does not believe there are any uncertain tax positions that require recognition of a tax liability.
Recent Accounting Standard: In May 2011, the Financial Accounting Standards Board issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Fund’s financial statements and disclosures.
Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Fund’s Board, independent Directors (“Independent Directors”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain other BlackRock Closed-End Funds selected by the Independent Directors. This has approximately the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.
The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund. Each Fund may, however, elect to invest in common shares of certain other BlackRock Closed-End Funds selected by the Independent Directors in order to match its deferred compensation obligations. Investments to cover each Fund’s deferred compensation liability, if any, are included in other assets in the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in income — affiliated in the Statements of Operations.
Offering Costs: MEN and MUI incurred costs in connection with their issuance of VRDP Shares, which were recorded as a deferred charge and will be amortized over 30-year life of the VRDP Shares with the exception of upfront fees paid to the liquidity provider which are 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.
Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.
The Funds have an arrangement with the custodians whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodians impose fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.
2. Derivative Financial Instruments:
The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and to economically hedge, or protect, their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange.
Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.
Financial Futures Contracts: The Funds purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or
|
|
|
|
|
|
|
|
|
62 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
Notes to Financial Statements (continued) |
economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are agreements between the Funds and counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recorded by the Funds as unrealized appreciation or depreciation. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative Financial Instruments Categorized by Risk Exposure: |
||||||||||||||||
|
|
||||||||||||||||
|
Fair Values of Derivative Financial Instruments as of October 31, 2011 |
||||||||||||||||
|
|
|
|
|
|||||||||||||
|
|
|
|
|
MHD |
|
MUH |
|
MVT |
|
|||||||
|
|
|
Statement
of Assets |
|
|
|
|
Value |
|
|
|
|
|||||
|
Interest rate contracts |
|
Net unrealized appreciation/depreciation* |
|
$ |
50,602 |
|
$ |
35,363 |
|
$ |
92,019 |
|
||||
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
MUA |
|
|||||
|
|
|
Statement
of Assets |
|
|
|
|
|
|
|
Value |
|
|||||
|
Interest rate contracts |
|
Net unrealized appreciation/depreciation* |
|
|
|
|
|
|
|
$ |
58,220 |
|
||||
|
|
|
|
|
|
* |
Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s margin variation is reported within the Statements of Assets and Liabilities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Effect of Derivative Financial Instruments in the
Statements of Operations |
|
|||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
|
|
|
MUA |
|
MEN |
|
MHD |
|
MUH |
|
MUS |
|
MUI |
|
MVT |
|
|||||||
|
Interest rate contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial futures contracts |
|
$ |
(1,300,994 |
) |
$ |
(2,159,932 |
) |
$ |
(1,297,139 |
) |
$ |
(931,647 |
) |
$ |
(754,665 |
) |
$ |
(2,567,851 |
) |
$ |
(2,183,225 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Unrealized Appreciation/Depreciation on |
|
|||||||||||||||||||
|
|
|
MUA |
|
MEN |
|
MHD |
|
MUH |
|
MUS |
|
MUI |
|
MVT |
|
|||||||
|
Interest rate contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial futures contracts |
|
$ |
362,940 |
|
$ |
446,573 |
|
$ |
449,891 |
|
$ |
334,830 |
|
$ |
157,614 |
|
$ |
740,786 |
|
$ |
627,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended October 31, 2011, the average quarterly balances of outstanding derivative financial instruments were as follows: |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MUA |
|
MEN |
|
MHD |
|
MUH |
|
MUS |
|
MUI |
|
MVT |
|
|||||||
|
Financial futures contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of contracts sold |
|
|
72 |
|
|
85 |
|
|
61 |
|
|
44 |
|
|
26 |
|
|
94 |
|
|
106 |
|
|
Average notional value of contracts sold |
|
$ |
9,415,688 |
|
$ |
10,683,438 |
|
$ |
7,742,875 |
|
$ |
5,582,563 |
|
$ |
3,267,875 |
|
$ |
11,814,625 |
|
$ |
13,381,531 |
|
3. Investment Advisory Agreement and Other Transactions with Affiliates:
The PNC Financial Services Group, Inc. (“PNC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but Barclays is not.
Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee based on a percentage of each Fund’s average daily net assets at the following rates:
|
|
|
|
|
|
|
MUA |
|
|
0.55 |
% |
|
MEN |
|
|
0.50 |
% |
|
MHD |
|
|
0.55 |
% |
|
MUH |
|
|
0.55 |
% |
|
MUS |
|
|
0.55 |
% |
|
MUI |
|
|
0.55 |
% |
|
MVT |
|
|
0.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
63 |
|
|
|
|
|
Notes to Financial Statements (continued) |
Average daily net assets are the average daily value of each Fund’s total assets minus the sum of its accrued liabilities.
The Manager, for MUS, voluntarily agreed to waive its investment advisory fee on the proceeds of the AMPS and TOBs that exceed 35% of total assets minus the sum of its accrued liabilities. This amount is included in fees waived by advisor in the Statements of Operations. For the six months ended October 31, 2011, the waiver was $73,274.
The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds, however, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid through each Fund’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by advisor in the Statements of Operations. For the six months ended October 31, 2011, the amounts waived were as follows:
|
|
|
|
|
|
|
MUA |
|
$ |
1,206 |
|
|
MEN |
|
$ |
1,645 |
|
|
MHD |
|
$ |
1,007 |
|
|
MUH |
|
$ |
443 |
|
|
MUS |
|
$ |
2,297 |
|
|
MUI |
|
$ |
4,537 |
|
|
MVT |
|
$ |
1,094 |
|
The Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Fund to the Manager.
Certain officers and/or Directors of the Funds are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager for compensation paid to the Funds’ Chief Compliance Officer.
4. Investments:
Purchases and sales of investments, excluding short-term securities, for the six months ended October 31, 2011, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases |
|
Sales |
|
||
|
MUA |
|
$ |
66,632,037 |
|
$ |
56,336,150 |
|
|
MEN |
|
$ |
60,989,361 |
|
$ |
65,216,647 |
|
|
MHD |
|
$ |
31,702,208 |
|
$ |
31,478,128 |
|
|
MUH |
|
$ |
21,373,303 |
|
$ |
20,774,938 |
|
|
MUS |
|
$ |
44,822,231 |
|
$ |
41,273,526 |
|
|
MUI |
|
$ |
137,401,957 |
|
$ |
164,499,909 |
|
|
MVT |
|
$ |
29,042,260 |
|
$ |
24,182,999 |
|
5. Capital Loss Carryforwards:
As of April 30, 2011, 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 |
|
MUI |
|
MVT |
|
|||||
|
2012 |
|
$ |
5,521,565 |
|
$ |
364,714 |
|
|
— |
|
|
— |
|
|
— |
|
|
2013 |
|
|
3,762,613 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2014 |
|
|
3,072,949 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2015 |
|
|
5,065,527 |
|
|
— |
|
|
— |
|
$ |
240,595 |
|
$ |
4,202,338 |
|
|
2016 |
|
|
901,327 |
|
|
2,508,309 |
|
$ |
166,265 |
|
|
321,623 |
|
|
— |
|
|
2017 |
|
|
3,645,754 |
|
|
3,540,378 |
|
|
5,373,343 |
|
|
3,730,704 |
|
|
— |
|
|
2018 |
|
|
396,366 |
|
|
1,225,298 |
|
|
6,614,798 |
|
|
— |
|
|
— |
|
|
2019 |
|
|
2,194,154 |
|
|
943,047 |
|
|
— |
|
|
— |
|
|
— |
|
|
Total |
|
$ |
24,560,255 |
|
$ |
8,581,746 |
|
$ |
12,154,406 |
|
$ |
4,292,922 |
|
$ |
4,202,338 |
|
Under the recently enacted Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Funds after April 30, 2011 will not be subject to expiration. In addition, any such losses must be utilized prior to the losses incurred in pre-enactment taxable years.
6. Concentration, Market and Credit Risk:
MEN, MHD, MUH, MUS and MUI invest a substantial amount of their assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states.
Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.
In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage coun-terparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and
|
|
|
|
|
|
|
|
|
64 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
Notes to Financial Statements (continued) |
counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Funds’ Statements of Assets and Liabilities, less any collateral held by the Funds.
As of October 31, 2011, MUA, MHD, MUH and MVT invested a significant portion of their assets in securities in the health sector. MEN invested a significant portion of its assets in securities in the county/city/special district/school district and transportation sectors. MUS invested a significant portion of its assets in securities in the county/city/special district/school district, utilities and transportation sectors. MUI invested a significant portion of its assets in securities in the county/city/special district/school district sector. Changes in economic conditions affecting the county/city/special district/school district, health, transportation and utilities sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.
7. Capital Share Transactions:
Each Fund is authorized to issue 200 million of $0.10 par value shares, all of which were initially classified as Common Shares. The par value for each Fund’s AMPS and VRDP Shares is $0.10, except MEN Series A, B and C, which is $0.025 and MVT Series A, B and C, which is $0.05. Each Fund’s Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders.
Common Shares
For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended |
|
Year
Ended |
|
||
|
MUA |
|
|
— |
|
|
52,762 |
|
|
MEN |
|
|
— |
|
|
83,278 |
|
|
MHD |
|
|
23,850 |
|
|
82,143 |
|
|
MUH |
|
|
207 |
|
|
52,545 |
|
|
MUS |
|
|
— |
|
|
61,762 |
|
|
MVT |
|
|
71,420 |
|
|
158,460 |
|
Shares issued and outstanding remained constant for MUI for the six months ended October 31, 2011 and the year ended April 30, 2011.
AMPS
The AMPS are redeemable at the option of MHD, MUH, MUS and MVT (collectively, the “AMPS Funds”), in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The AMPS are also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of the AMPS Funds, as set forth in each AMPS Funds’Articles Supplementary/Statement of Preferences and/or Certificate of Designation (the “Governing Instrument”) are not satisfied.
From time to time in the future, each AMPS Fund may effect repurchases of its AMPS at prices below their liquidation preference as agreed upon by the Fund and seller. Each AMPS Fund also may redeem its AMPS from time to time as provided in the applicable Governing Instrument. Each AMPS Fund intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.
The AMPS Funds had the following series of AMPS outstanding, effective yields and reset frequency as of October 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series |
|
AMPS |
|
|
Effective |
|
|
Reset |
|
|
|
MHD |
|
A |
|
1,473 |
|
|
0.23 |
% |
|
7 |
|
|
|
|
|
B |
|
1,473 |
|
|
0.23 |
% |
|
7 |
|
|
|
|
|
C |
|
402 |
|
|
1.31 |
% |
|
7 |
|
|
|
|
||||||||||||
|
MUH |
|
A |
|
1,101 |
|
|
0.23 |
% |
|
7 |
|
|
|
|
|
B |
|
1,101 |
|
|
0.23 |
% |
|
7 |
|
|
|
|
||||||||||||
|
MUS |
|
A |
|
1,740 |
|
|
0.23 |
% |
|
7 |
|
|
|
|
|
B |
|
1,740 |
|
|
0.23 |
% |
|
7 |
|
|
|
|
||||||||||||
|
MVT |
|
A |
|
1,440 |
|
|
0.23 |
% |
|
28 |
|
|
|
|
|
B |
|
1,440 |
|
|
0.23 |
% |
|
28 |
|
|
|
|
|
C |
|
1,440 |
|
|
0.23 |
% |
|
7 |
|
|
|
|
|
D |
|
1,280 |
|
|
1.31 |
% |
|
7 |
|
|
Dividends on seven-day and 28-day AMPS are cumulative at a rate which is reset every seven or 28 days, respectively, based on the results of an auction. If the AMPS fail to clear the auction on an auction date, each Fund is required to pay the maximum applicable rate on the AMPS to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on the AMPS is as footnoted in the preceding table above. The low, high and average dividend rates on the AMPS for each Fund for the six months ended October 31, 2011 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series |
|
Low |
|
|
High |
|
|
Average |
|
|
|
MEN |
|
A1 |
|
0.34 |
% |
|
0.34 |
% |
|
0.34 |
% |
|
|
|
|
B1 |
|
0.32 |
% |
|
0.32 |
% |
|
0.32 |
% |
|
|
|
|
C1 |
|
0.32 |
% |
|
0.41 |
% |
|
0.35 |
% |
|
|
|
|
D2 |
|
1.38 |
% |
|
1.42 |
% |
|
1.40 |
% |
|
|
|
||||||||||||
|
MHD |
|
A1 |
|
0.11 |
% |
|
0.37 |
% |
|
0.24 |
% |
|
|
|
|
B1 |
|
0.11 |
% |
|
0.35 |
% |
|
0.23 |
% |
|
|
|
|
C2 |
|
1.26 |
% |
|
1.47 |
% |
|
1.33 |
% |
|
|
|
||||||||||||
|
MUH |
|
A1 |
|
0.11 |
% |
|
0.37 |
% |
|
0.24 |
% |
|
|
|
|
B1 |
|
0.11 |
% |
|
0.35 |
% |
|
0.23 |
% |
|
|
|
||||||||||||
|
MUS |
|
A1 |
|
0.11 |
% |
|
0.35 |
% |
|
0.23 |
% |
|
|
|
|
B1 |
|
0.11 |
% |
|
0.41 |
% |
|
0.24 |
% |
|
|
|
||||||||||||
|
MVT |
|
A1 |
|
0.12 |
% |
|
0.37 |
% |
|
0.24 |
% |
|
|
|
|
B1 |
|
0.14 |
% |
|
0.35 |
% |
|
0.25 |
% |
|
|
|
|
C1 |
|
0.11 |
% |
|
0.37 |
% |
|
0.24 |
% |
|
|
|
|
D2 |
|
1.26 |
% |
|
1.47 |
% |
|
1.33 |
% |
|
|
|
|
|
|
|
1 |
The maximum applicable rate on this series of AMPS is the higher of 110% of the AA commercial paper or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. |
|
|
||
|
|
2 |
The maximum applicable rate on this series of AMPS is the higher of 110% plus or times (i) the Telerate/BAA LIBOR or (ii) 90% of Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. |
Since February 13, 2008, the AMPS of the Funds failed to clear any of their auctions. As a result, the AMPS dividend rates were reset to the maximum applicable rate, which ranged from 0.11% to 1.47% for the six months ended October 31, 2011. A failed auction is not an event of default for the Funds but it has a negative impact on the liquidity of AMPS. A failed auction occurs
|
|
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
65 |
|
|
|
|
|
Notes to Financial Statements (continued) |
when there are more sellers of a Fund’s AMPS than buyers. A successful auction for the Funds’ AMPS may not occur for some time, if ever, and even if liquidity does resume, holders of AMPS may not have the ability to sell the AMPS at their liquidation preference.
The Funds paid commissions of 0.15% on the aggregate principal amount of all shares that fail to clear their auctions and 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Certain broker dealers have individually agreed to reduce commissions for failed auctions.
During the six months ended October 31, 2011, MEN announced the following redemptions of AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series |
|
Redemption |
|
Shares |
|
Aggregate |
|
||
|
MEN |
|
A28 |
|
6/14/11 |
|
|
1,525 |
|
$ |
38,125,000 |
|
|
|
|
B28 |
|
6/21/11 |
|
|
1,525 |
|
$ |
38,125,000 |
|
|
|
|
C7 |
|
5/31/11 |
|
|
1,525 |
|
$ |
38,125,000 |
|
|
|
|
D7 |
|
6/10/11 |
|
|
1,128 |
|
$ |
28,200,000 |
|
MEN financed the AMPS redemptions with the proceeds received from the issuance of VRDP Shares of $142,500,000.
AMPS issued and outstanding remained constant during the six months ended October 31, 2011 for MHD, MUH, MUS and MVT.
During the year ended April 30, 2011, MUI announced the following redemption of AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series |
|
Redemption |
|
Shares |
|
Aggregate |
|
||
|
MUI |
|
M7 |
|
4/05/11 |
|
|
1,795 |
|
$ |
44,875,000 |
|
|
|
|
T7 |
|
4/06/11 |
|
|
2,423 |
|
$ |
60,575,000 |
|
|
|
|
W7 |
|
4/07/11 |
|
|
1,795 |
|
$ |
44,875,000 |
|
|
|
|
TH7 |
|
4/08/11 |
|
|
2,423 |
|
$ |
60,575,000 |
|
|
|
|
F7 |
|
4/04/11 |
|
|
1,795 |
|
$ |
44,875,000 |
|
|
|
|
TH28 |
|
4/08/11 |
|
|
1,256 |
|
$ |
31,400,000 |
|
MUI financed the AMPS redemptions with the proceeds received from the issuance of VRDP Shares of $287,100,000.
AMPS issued and outstanding remained constant during the year ended April 30, 2011 for MEN, MHD, MUH, MUS and MVT.
VRDP Shares
MEN and MUI have issued Series W-7 VRDP Shares, $100,000 liquidation value 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 and include a liquidity feature that allows the VRDP Shareholders to have their shares purchased by the liquidity provider in the event of a failed remarketing. MEN and MUI are required to redeem the VRDP Shares owned by the liquidity provider after six months of continuous, unsuccessful remarketing. The VRDP Shares issued for the six months ended October 31, 2011 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Series |
|
Issue Date |
|
Shares |
|
Maturity Date |
|
MEN |
|
W-7 |
|
5/19/11 |
|
1,425 |
|
6/01/41 |
The VRDP Shares issued for the year ended April 30, 2011 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Series |
|
Issue Date |
|
Shares |
|
Maturity Date |
|
MUI |
|
W-7 |
|
3/17/11 |
|
2,871 |
|
4/01/41 |
MEN and MUI have entered into a fee agreement with the liquidity provider that required an initial commitment and a per annum liquidity fee to be paid to the liquidity provider. These fees are shown as liquidity fees in the Statements of Operations.
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 as discussed below. 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. For financial reporting purposes, the liquidation value of VRDP Shares is recorded as a liability in the Statements of Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends paid on the VRDP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. Dividends paid to holders of VRDP Shares are generally classified as tax-exempt income for tax-reporting purposes.
The short-term ratings on the VRDP Shares are directly related to the short-term ratings of the liquidity provider. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares, which could impact the dividend rate paid on such shares. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories.
Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part, at any time at the option of MEN and MUI. The redemption price per VRDP Share is equal to the liquidation value per share plus any outstanding unpaid dividends. In the event of an optional redemption of VRDP Shares prior to the initial termination date of the fee agreement, MEN and MUI must pay the liquidity provider fees on such redeemed VRDP Shares for the remaining term of the fee agreement up to the initial termination date. MEN and MUI are required to redeem certain of its outstanding VRDP Shares if it fails to maintain certain asset coverage and basic maintenance amount requirements.
|
|
|
|
|
|
|
|
|
66 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
Notes to Financial Statements (concluded) |
All of MEN’s and MUI’s VRDP Shares have successfully remarketed since issuance, with an annualized dividend rate of 0.31% and 0.35%, respectively, for the six months ended October 31, 2011.
Preferred Shares
MEN’s and MUI’s Preferred Shares rank prior to MEN’s and MUI’s Common Shares as to the payment of dividends by MEN and MUI and distribution of assets upon dissolution or liquidation of MEN and MUI. The 1940 Act prohibits the declaration of any dividends on MEN’s and MUI’s Common Shares or the repurchase of MEN’s and MUI’s Common Shares if MEN and MUI fail to maintain the asset coverage of at least 200% of the liquidation preference of the outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, MEN and MUI are restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with the Preferred Shares or repurchasing such shares if MEN and MUI fail 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 rating agencies then rating the Preferred Shares.
The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors for each Fund. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.
8. Subsequent Events:
Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:
The Funds will pay a net investment income dividend in the following amounts per share on December 1, 2011 to Common Shareholders of record on November 15, 2011:
|
|
|
|
|
|
|
|
|
Common
Dividend |
|
|
|
MUA |
|
$ |
0.0625 |
|
|
MEN |
|
$ |
0.0570 |
|
|
MHD |
|
$ |
0.0905 |
|
|
MUH |
|
$ |
0.0815 |
|
|
MUS |
|
$ |
0.0740 |
|
|
MUI |
|
$ |
0.0715 |
|
|
MVT |
|
$ |
0.0885 |
|
The dividends declared on AMPS or VRDP Shares for the period November 1, 2011 to November 30, 2011 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Series |
|
Dividends |
|
|
|
MEN VRDP Shares |
|
|
W-7 |
|
$ |
32,248 |
|
|
|
|||||||
|
MHD AMPS |
|
|
A |
|
$ |
6,010 |
|
|
|
|
|
B |
|
$ |
78,95 |
|
|
|
|
|
C |
|
$ |
2,492 |
|
|
|
|||||||
|
MUH AMPS |
|
|
A |
|
$ |
5,615 |
|
|
|
|
|
B |
|
$ |
5,692 |
|
|
|
|||||||
|
MUS AMPS |
|
|
A |
|
$ |
8,944 |
|
|
|
|
|
B |
|
$ |
8,996 |
|
|
|
|||||||
|
MUI VRDP Shares |
|
|
W-7 |
|
$ |
62,611 |
|
|
|
|||||||
|
MVT AMPS |
|
|
A |
|
$ |
6,293 |
|
|
|
|
|
B |
|
$ |
6,523 |
|
|
|
|
|
C |
|
$ |
6,091 |
|
|
|
|
|
D |
|
$ |
39,846 |
|
On December 16, 2011, the following Funds issued Series W-7 Variable Rate MuniFund Term Preferred Shares (“VMTP Shares”), $100,000 liquidation value per share, with a maturity date of January 2, 2015 in private offerings of VMTP Shares with qualified institutional buyers, as defined in Rule 144A under the Securities Act of 1933 to finance the AMPS redemption. The VMTP Shares issued were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
Proceeds |
|
||
|
MHD |
|
|
837 |
|
$ |
83,700,000 |
|
|
MUH |
|
|
550 |
|
$ |
55,000,000 |
|
|
MUS |
|
|
870 |
|
$ |
87,000,000 |
|
|
MVT |
|
|
1,400 |
|
$ |
140,000,000 |
|
The following Funds announced the redemption of all of the outstanding AMPS at the indicated liquidation preference per share plus any accrued and unpaid dividends through the expected redemption date as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series |
|
Announcement |
|
Redemption |
|
Shares |
|
Liquidation |
|
||
|
MHD |
|
A |
|
12/19/11 |
|
1/11/12 |
|
|
1,473 |
|
$ |
25,000 |
|
|
|
|
B |
|
12/19/11 |
|
1/06/12 |
|
|
1,473 |
|
$ |
25,000 |
|
|
|
|
C |
|
12/19/11 |
|
1/10/12 |
|
|
402 |
|
$ |
25,000 |
|
|
|
|||||||||||||
|
MUH |
|
A |
|
12/19/11 |
|
1/11/12 |
|
|
1,101 |
|
$ |
25,000 |
|
|
|
|
B |
|
12/19/11 |
|
1/09/12 |
|
|
1,101 |
|
$ |
25,000 |
|
|
|
|||||||||||||
|
MUS |
|
A |
|
12/19/11 |
|
1/06/12 |
|
|
1,740 |
|
$ |
25,000 |
|
|
|
|
B |
|
12/19/11 |
|
1/10/12 |
|
|
1,740 |
|
$ |
25,000 |
|
|
|
|||||||||||||
|
MVT |
|
A |
|
12/19/11 |
|
1/12/12 |
|
|
1,440 |
|
$ |
25,000 |
|
|
|
|
B |
|
12/23/11 |
|
1/19/12 |
|
|
1,440 |
|
$ |
25,000 |
|
|
|
|
C |
|
12/19/11 |
|
1/12/12 |
|
|
1,440 |
|
$ |
25,000 |
|
|
|
|
D |
|
12/19/11 |
|
1/10/12 |
|
|
1,280 |
|
$ |
25,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
67 |
|
|
|
|
|
Disclosure of Investment Advisory Agreements and Sub-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 Muni-Assets 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” and together with MUA, MEN, MHD, MUH, MUS and MUI, each a “Fund,” and, collectively, the “Funds”) met on April 14, 2011 and May 12–13, 2011 to consider the approval of each Fund’s investment advisory agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. The Board of each Fund also considered the approval of the sub-advisory agreement (each, a “Sub-Advisory Agreement”) between the Manager and BlackRock Investment Management, LLC (the “Sub-Advisor”), with respect to each Fund. The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements are referred to herein as the “Agreements.”
Activities and Composition of the Board
Each Board consists of eleven individuals, nine of whom are not “interested persons” of such Fund as defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of 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 Chairman of the Board is an Independent Board Member. Each Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member) and is chaired by an Independent Board Member. The Board of each of MHD, MUH, MUS and MVT also has established a Committee on Auction Market Preferred Shares. In addition, the Board of each of MEN and MUI had established a Committee on Auction Market Preferred Shares prior to the redemption of all of its respective Fund’s outstanding auction market preferred shares. Further, the Boards, together with the boards of other BlackRock-managed funds, also had established an ad hoc committee, the Joint Product Pricing Committee, which consisted of Independent Board Members and the directors/trustees of the boards of certain other BlackRock-managed funds, who were not “interested persons” of their respective funds.
The Agreements
Pursuant to the 1940 Act, the Boards are required to consider the continuation of the Agreements on an annual basis. In connection with this process, the Boards assessed, among other things, the nature, scope and quality of the services provided to the Funds by BlackRock, its personnel and its affiliates, including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services, risk oversight, compliance program and assistance in meeting applicable legal and regulatory requirements.
The Boards, acting directly and through their respective committees, considered 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. Among the matters the Boards considered were: (a) investment performance for one-, three- and five-year periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management’s and portfolio managers’ analyses of the reasons for any over performance or underperformance against their peers and/or benchmark, as applicable; (b) fees, including advisory and other amounts paid to BlackRock and its affiliates by the Funds for services such as call center and fund accounting; (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 objectives, policies and restrictions; (e) the Funds’ compliance with their Code of Ethics and other 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) analyses of contractual and actual management fee ratios for products with similar investment objectives across the open-end fund, closed-end fund and institutional account product channels, as applicable; (l) BlackRock’s compensation methodology for its investment professionals and the incentives it creates; and (m) periodic updates on BlackRock’s business.
Board Considerations in Approving the Agreements
The Approval Process: Prior to the April 14, 2011 meeting, the Boards requested and received materials specifically relating to the Agreements. The Boards are engaged in a process with BlackRock to review periodically the nature and scope of the information provided to better assist their deliberations. The materials provided in connection with the April meeting included (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on Fund fees and expenses and the investment performance of the Funds as compared with a peer group of funds as determined by Lipper and a customized peer group selected by BlackRock (collectively, “Peers”); (b) information on the profitability of the Agreements to BlackRock and a discussion of fall-out benefits to BlackRock and its affiliates and significant shareholders; (c) general analyses provided by BlackRock concerning investment management fees (a combination of the advisory fee and the administration fee, if any) charged to other clients, such as institutional clients and open-end funds, under similar investment mandates, as applicable; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by each Fund to BlackRock and (f) if applicable, a comparison of management fees to similar BlackRock closed-end funds, as classified by Lipper.
|
|
|
|
|
|
|
|
|
68 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
|
|
|
|
|
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued) |
At an in-person meeting held on April 14, 2011, the Boards reviewed materials relating to their consideration of the Agreements. As a result of the discussions that occurred during the April 14, 2011 meeting, and as a culmination of the Boards’ year-long deliberative process, the Boards presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the May 12–13, 2011 Board meeting.
At an in-person meeting held on May 12–13, 2011, each Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and its Fund and the Sub-Advisory Agreement between the Manager and the Sub-Advisor with respect to its Fund, each for a one-year term ending June 30, 2012. 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 and BlackRock; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and its affiliates from their relationship with the Funds; (d) economies of scale; (e) fall-out benefits to BlackRock as a result of its relationship with the Funds; and (f) other factors deemed relevant by the Board Members.
The Boards also considered other matters they deemed important to the approval process, such as services related to the valuation and pricing of Fund portfolio holdings, direct and indirect benefits to BlackRock and its affiliates and significant shareholders from their relationship with Funds and advice from independent legal counsel with respect to the review process and materials submitted for the Boards’ review. The Boards noted the willingness of BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as controlling, and each Board Member may have attributed different weights to the various items considered.
A. Nature, Extent and Quality of the Services Provided by BlackRock: The Boards, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of the Funds. Throughout the year, the Boards compared Fund performance to the performance of a comparable group of closed-end funds and/or the performance of a relevant benchmark, if any. The Boards met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. Each Board also reviewed the materials provided by its Fund’s portfolio management team discussing Fund performance and the Fund’s investment objective, strategies and outlook.
The Boards considered, among other factors, the number, education and experience of BlackRock’s investment personnel generally and their Funds’ portfolio management teams, investments by portfolio managers in the funds they manage, BlackRock’s portfolio trading capabilities, BlackRock’s use of technology, BlackRock’s commitment to compliance, BlackRock’s credit analysis capabilities, BlackRock’s risk analysis capabilities and BlackRock’s approach to training and retaining portfolio managers and other research, advisory and management personnel. The Boards engaged in a review of BlackRock’s compensation structure with respect to their Funds’ portfolio management teams and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.
In addition to advisory services, the Boards considered the quality of the administrative and non-investment advisory services provided to the Funds. BlackRock and its affiliates provide the Funds with certain 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 addition to investment advisory services, BlackRock and its affiliates provide the Funds with other services, including (i) preparing disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of the Funds; (iii) assisting with daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; and (viii) performing other administrative functions necessary for the operation of 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, accounting, legal and 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: The Boards, including the Independent Board Members, also reviewed and considered the performance history of their Funds. In preparation for the April 14, 2011 meeting, the Boards worked with BlackRock and Lipper to develop a template for, and was provided with reports independently prepared by Lipper, which included a comprehensive analysis of each Fund’s performance. The Boards also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In connection with its review, each Board received and reviewed information regarding the investment performance, based on net asset value (NAV), of its Fund as compared to funds in that Fund’s applicable Lipper category and a customized peer group selected by BlackRock. The Boards were provided with a description of the methodology used by Lipper to select peer funds. The Boards and each Board’s Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of the Funds throughout the year.
The Board of each of MUA, MEN, MHD, MUH, MUI and MVT noted that, in general, its respective Fund performed better than its Peers in that the Fund’s performance was at or above the median of its Customized Lipper Peer Group Composite in each of the one-, three- and five-year periods reported.
The Board of MUS noted that, in general, MUS performed better than its Peers in that MUS’s performance was at or above the median of its Customized Lipper Peer Group Composite in two of the one-, three- and five-year periods reported.
The Boards noted that BlackRock has made changes to the organization of the overall fixed income group management structure designed to result in a strengthened leadership team.
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|
|
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
69 |
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|
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued) |
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 ratio compared with the other funds in its Lipper category. It also compared the Fund’s total expense ratio, as well as actual management fee ratio, to those of other funds in its Lipper category. Each Board considered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including separately managed institutional accounts.
The Boards received and reviewed statements relating to BlackRock’s financial condition and profitability with respect to the services it provided the Funds. The Boards 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, 2010 compared to available aggregate profitability data provided for the years ended December 31, 2009, and December 31, 2008. The Boards reviewed BlackRock’s profitability with respect to other fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, expense allocations and business mix, and the difficulty of comparing profitability as a result of those factors.
The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Boards considered BlackRock’s overall operating margin, in general, compared to the operating margin for leading investment management firms whose operations include advising closed-end funds, among other product types. That data indicates that operating margins for BlackRock, in general and with respect to its registered funds, are generally consistent with margins earned by similarly situated publicly traded competitors. In addition, the Boards considered, among other things, certain third party data comparing BlackRock’s operating margin with that of other publicly-traded asset management firms. That third party data indicates that larger asset bases do not, in themselves, translate to higher profit margins.
In addition, the Boards considered the cost of the services provided to 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 its analysis, the Boards reviewed BlackRock’s methodology in allocating its costs to the management of the Funds. The Boards also considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Boards.
The Board of each Fund noted that its respective Fund’s contractual management fee ratio (a combination of the advisory fee and the administration fee, if any) was lower than or equal to the median contractual management fee ratio paid by the Fund’s Peers, in each case before taking into account any expense reimbursements or fee waivers.
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 and whether there should be changes in the advisory fee rate or structure in order to enable the Fund to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the asset level of the Fund. Based on the ad hoc Joint Product Pricing Committee’s and each Board’s review and consideration of this issue, each Board concluded that closed-end funds are typically priced at scale at a fund’s inception; therefore, the implementation of breakpoints was not necessary.
The Boards noted 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. The Boards noted that only one closed-end fund in the Fund Complex has breakpoints in its advisory fee structure.
E. Other Factors Deemed Relevant by the Board Members: The Boards, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates and significant shareholders may derive from their respective relationships with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios 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 securities lending 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. The Boards further noted that BlackRock’s funds may invest in affiliated ETFs without any offset against the management fees payable by the funds to BlackRock.
In connection with its consideration of the Agreements, the Boards also received information regarding BlackRock’s brokerage and soft dollar prac-tices. 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 market-place and that shareholders are able to sell their Fund shares in the secondary market if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.
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70 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
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Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded) |
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, 2012 and the Sub-Advisory Agreement between the Manager and the Sub-Advisor, with respect to its Fund, for a one-year term ending June 30, 2012. As part of its approval, each Board considered the detailed review of BlackRock’s fee structure, as it applies to its Fund, conducted by the ad hoc Joint Product Pricing Committee. Based upon its evaluation of all of the aforementioned factors in their totality, each Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of its Fund and its shareholders. In arriving at its decision to approve the Agreements, no Board identified any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making these determinations. 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.
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SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
71 |
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Richard E. Cavanagh, Chairman of the Board and Director |
|
Karen P. Robards, Vice Chairperson of the Board, |
|
Chairperson of the Audit Committee and Director |
|
Paul L. Audet, Director |
|
Michael Castellano, Director and Member of the Audit Committee |
|
Frank J. Fabozzi, Director and Member of the Audit Committee |
|
Kathleen F. Feldstein, Director |
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James T. Flynn, Director and Member of the Audit Committee |
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Henry Gabbay, Director |
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Jerold B. Harris, Director |
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R. Glenn Hubbard, Director |
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W. Carl Kester, Director and Member of the Audit Committee |
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John M. Perlowski, President and Chief Executive Officer |
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Anne Ackerley, Vice President |
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Brendan Kyne, Vice President |
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Neal Andrews, Chief Financial Officer |
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Jay Fife, Treasurer |
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Brian Kindelan, Chief Compliance Officer and |
|
Anti-Money Laundering Officer |
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Ira P. Shapiro, Secretary |
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|
Effective July 28, 2011, Richard S. Davis resigned as Director of |
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Investment Advisor |
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BlackRock Advisors, LLC |
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Wilmington, DE 19809 |
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Sub-Advisor |
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BlackRock Investment Management, LLC |
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Princeton, NJ 08540 |
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Custodians |
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The Bank of New York Mellon1 |
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New York, NY 10286 |
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State Street Bank and Trust Company2 |
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Boston, MA 02110 |
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Transfer Agents |
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Common Shares: |
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BNY Mellon Shareowner Services1 |
|
Jersey City, NJ 07310 |
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Computershare Trust Company, N.A.2 |
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Providence, RI 02940 |
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AMPS Auction Agent |
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BNY Mellon Shareowner Services3 |
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Jersey City, NJ 07310 |
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VRDP Tender and Paying Agent |
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The Bank of New York Mellon4 |
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New York, NY 10289 |
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VRDP Remarketing Agents |
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Citigroup Global Markets Inc.5 |
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New York, NY 10179 |
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J.P. Morgan Securities LLC6 |
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New York, NY 10179 |
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Accounting Agent |
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State Street Bank and Trust Company |
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Boston, MA 02110 |
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Independent Registered Public Accounting Firm |
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Deloitte & Touche LLP |
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Boston, MA 02116 |
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Legal Counsel |
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Skadden, Arps, Slate, Meagher & Flom LLP |
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New York, NY 10036 |
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Address of the Funds |
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100 Bellevue Parkway |
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Wilmington, DE 19809 |
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1 |
For MUA, MHD, MUH, MUS and MVT. |
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||
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2 |
For MEN and MUI. |
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||
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3 |
For MUH, MUS and MVT. |
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4 |
For MEN, MHD and MUI. |
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5 |
For MEN. |
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6 |
For MUI. |
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72 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
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Proxy Results |
The Annual Meeting of Shareholders was held on July 28, 2011, for shareholders of record on May 31, 2011, to elect director nominees for each Fund. There were no broker non-votes with regard to any of the Funds.
Approved the Class I Directors as follows:
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||||||||||||||||||||||||||||
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|
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Paul L. Audet |
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Michael J. Castellano |
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R. Glenn Hubbard |
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|||||||||||||||||||||
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|
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Votes For |
|
Votes |
|
Abstain |
|
Votes For |
|
Votes |
|
Abstain |
|
Votes For |
|
Votes |
|
Abstain |
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|||||||||
|
MUA |
|
32,119,362 |
|
1,290,980 |
|
0 |
|
32,105,120 |
|
1,305,222 |
|
0 |
|
32,133,705 |
|
1,276,637 |
|
0 |
|
|||||||||
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W. Carl Kester |
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|||||||
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Votes For |
|
Votes |
|
Abstain |
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MUA |
|
32,136,303 |
|
1,274,039 |
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0 |
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|||
For the Trust 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, Frank J. Fabozzi, Kathleen F. Feldstein, James T. Flynn, Henry Gabbay, Jerrold B. Harris and Karen P. Robards.
Approved the Directors as follows:
|
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|||||||||||||||||||
|
|
|
Paul L. Audet |
|
Michael J. Castellano |
|
Richard E. Cavanagh |
|
||||||||||||
|
|
|
Votes For |
|
Votes |
|
Abstain |
|
Votes For |
|
Votes |
|
Abstain |
|
Votes For |
|
Votes |
|
Abstain |
|
|
MEN |
|
24,547,599 |
|
506,964 |
|
0 |
|
24,503,067 |
|
551,497 |
|
0 |
|
24,530,219 |
|
524,344 |
|
0 |
|
|
MHD |
|
12,605,951 |
|
285,605 |
|
0 |
|
12,573,930 |
|
317,626 |
|
0 |
|
12,596,548 |
|
295,008 |
|
0 |
|
|
MUH |
|
9,405,000 |
|
579,274 |
|
0 |
|
9,441,559 |
|
542,715 |
|
0 |
|
9,451,432 |
|
532,842 |
|
0 |
|
|
MUS |
|
9,558,088 |
|
549,432 |
|
0 |
|
9,539,774 |
|
567,746 |
|
0 |
|
9,540,484 |
|
567,036 |
|
0 |
|
|
MUI |
|
36,168,801 |
|
691,778 |
|
0 |
|
36,142,165 |
|
718,414 |
|
0 |
|
36,196,742 |
|
663,837 |
|
0 |
|
|
MVT |
|
18,060,117 |
|
724,267 |
|
0 |
|
18,058,413 |
|
725,971 |
|
0 |
|
18,037,270 |
|
747,114 |
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Frank J. Fabozzi1 |
|
Kathleen F. Feldstein |
|
James T. Flynn |
|
||||||||||||
|
|
|
Votes For |
|
Votes |
|
Abstain |
|
Votes For |
|
Votes |
|
Abstain |
|
Votes For |
|
Votes |
|
Abstain |
|
|
MEN |
|
750 |
|
275 |
|
0 |
|
24,387,878 |
|
666,686 |
|
0 |
|
24,410,701 |
|
643,862 |
|
0 |
|
|
MHD |
|
2,969 |
|
14 |
|
0 |
|
12,538,842 |
|
352,714 |
|
0 |
|
12,555,965 |
|
335,591 |
|
0 |
|
|
MUH |
|
1,615 |
|
28 |
|
0 |
|
9,390,492 |
|
593,782 |
|
0 |
|
9,426,054 |
|
558,220 |
|
0 |
|
|
MUS |
|
1,864 |
|
26 |
|
0 |
|
9,474,948 |
|
632,572 |
|
0 |
|
9,492,069 |
|
615,451 |
|
0 |
|
|
MUI |
|
2,215 |
|
656 |
|
0 |
|
36,091,671 |
|
768,908 |
|
0 |
|
36,115,832 |
|
744,747 |
|
0 |
|
|
MVT |
|
4,490 |
|
81 |
|
0 |
|
18,034,858 |
|
749,525 |
|
0 |
|
18,061,269 |
|
723,115 |
|
0 |
|
|
|
|||||||||||||||||||
|
|
|
Henry Gabbay |
|
Jerrold B. Harris |
|
R. Glenn Hubbard |
|
||||||||||||
|
|
|
Votes For |
|
Votes |
|
Abstain |
|
Votes For |
|
Votes |
|
Abstain |
|
Votes For |
|
Votes |
|
Abstain |
|
|
MEN |
|
24,543,095 |
|
511,468 |
|
0 |
|
24,519,856 |
|
534,707 |
|
0 |
|
24,517,286 |
|
537,277 |
|
0 |
|
|
MHD |
|
12,609,016 |
|
282,540 |
|
0 |
|
12,533,482 |
|
358,074 |
|
0 |
|
12,599,371 |
|
292,185 |
|
0 |
|
|
MUH |
|
9,398,527 |
|
585,747 |
|
0 |
|
9,396,352 |
|
587,922 |
|
0 |
|
9,429,591 |
|
554,683 |
|
0 |
|
|
MUS |
|
9,548,005 |
|
559,515 |
|
0 |
|
9,482,106 |
|
625,414 |
|
0 |
|
9,556,788 |
|
550,732 |
|
0 |
|
|
MUI |
|
36,153,148 |
|
707,431 |
|
0 |
|
36,138,625 |
|
721,954 |
|
0 |
|
36,174,226 |
|
686,353 |
|
0 |
|
|
MVT |
|
18,058,882 |
|
725,502 |
|
0 |
|
18,019,802 |
|
764,582 |
|
0 |
|
18,107,191 |
|
677,192 |
|
0 |
|
|
|
|||||||||||||||||||
|
|
|
W. Carl Kester1 |
|
Karen P. Robards |
|
|
|
|
|
|
|
||||||||
|
|
|
Votes For |
|
Votes |
|
Abstain |
|
Votes For |
|
Votes |
|
Abstain |
|
|
|
|
|
|
|
|
MEN |
|
750 |
|
275 |
|
0 |
|
24,538,118 |
|
516,445 |
|
0 |
|
|
|
|
|
|
|
|
MHD |
|
2,969 |
|
14 |
|
0 |
|
12,615,410 |
|
276,146 |
|
0 |
|
|
|
|
|
|
|
|
MUH |
|
1,615 |
|
28 |
|
0 |
|
9,405,247 |
|
579,027 |
|
0 |
|
|
|
|
|
|
|
|
MUS |
|
1,864 |
|
26 |
|
0 |
|
9,560,224 |
|
547,296 |
|
0 |
|
|
|
|
|
|
|
|
MUI |
|
2,215 |
|
656 |
|
0 |
|
36,125,210 |
|
735,369 |
|
0 |
|
|
|
|
|
|
|
|
MVT |
|
4,490 |
|
81 |
|
0 |
|
18,043,337 |
|
741,047 |
|
0 |
|
|
|
|
|
|
|
|
|
|
|
1 |
Voted on by holders of AMPS only. |
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|
|
|
|
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SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
73 |
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Additional Information (continued) |
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Dividend Policy |
The Funds’ dividend policy is to distribute all or a portion of their net investment income to their shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Funds may at times pay out less than the entire amount of net investment income earned in any particular month and may at times, in any particular month, pay out such accumulated but undistributed income in addition to net investment income earned in that month.As a result, the dividends paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.
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General Information |
On June 10, 2010, the Manager announced that the directors of MUI had received a demand letter sent on behalf of certain of MUI Common Shareholders. The demand letter alleged that the Manager and MUI’s officers and Board of Directors (the “Board”) breached their fiduciary duties owed to MUI and its Common Shareholders by redeeming at par certain of MUI’s AMPS, and demanded that the Board take action to remedy those alleged breaches. In response to the demand letter, the Board established a Demand Review Committee (the “Committee”) of the Independent Directors to investigate the claims made in the demand letter with the assistance of independent counsel. Based upon its investigation, the Committee recommended that the Board reject the demand specified in the letter. After reviewing the findings of the Committee, the Board unanimously adopted the Committee’s recommendation and unanimously voted to reject the demand.
The Funds do not make available copies of their Statements of Additional Information because the Funds’ shares are not continuously offered, which means that the Statement of Additional Information of each Fund has not been updated after completion of the respective Fund’s offerings and the information contained in each Fund’s Statement of Additional Information may have become outdated.
During the period, there were no material changes in the Funds’ investment objectives or policies or to the Funds’ charters or by-laws that were not approved by the shareholders or in the principal risk factors associated with investment in the Funds. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolio.
Quarterly performance, semi-annual and annual reports and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s web-site is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website into this report.
Electronic Delivery
Electronic copies of most financial reports are available on the Funds’ web-sites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds’ electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.
Householding
The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 441-7762.
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74 |
SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
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Additional Information (concluded) |
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General Information (concluded) |
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, DC. Information on 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) 441-7762.
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.
Availability of Fund Updates
BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Funds.
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BlackRock Privacy Principles |
BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.
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SEMI-ANNUAL REPORT |
OCTOBER 31, 2011 |
75 |
This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Certain of the Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in the short-term dividend rates of the Preferred Shares, including AMPS, which are currently set at the maximum reset rate as a result of failed auctions, may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.
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#CEMUNI7-10/11-SAR |
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Item 2 – |
Code of Ethics – Not Applicable to this semi-annual report |
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Item 3 – |
Audit Committee Financial Expert – Not Applicable to this semi-annual report |
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Item 4 – |
Principal Accountant Fees and Services – Not Applicable to this semi-annual report |
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Item 5 – |
Audit Committee of Listed Registrants – Not Applicable to this semi-annual report |
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Item 6 – |
Investments |
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(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form. |
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(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing. |
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Item 7 – |
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report |
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Item 8 – |
Portfolio Managers of Closed-End Management Investment Companies |
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(a) Not Applicable to this semi-annual report |
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(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. |
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Item 9 – |
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable |
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Item 10 – |
Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures. |
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Item 11 – |
Controls and Procedures |
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(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. |
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(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. |
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Item 12 – |
Exhibits attached hereto |
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(a)(1) – Code of Ethics – Not Applicable to this semi-annual report |
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(a)(2) – Certifications – Attached hereto |
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(a)(3) – Not Applicable |
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(b) – Certifications – Attached hereto |
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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. |
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BlackRock Muni Intermediate Duration Fund, Inc. |
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By: | /s/ John M. Perlowski |
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John M. Perlowski |
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Chief Executive Officer (principal executive officer) of |
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BlackRock Muni Intermediate Duration Fund, Inc. |
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Date: January 03, 2012 |
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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. |
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By: | /s/ John M. Perlowski |
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John M. Perlowski |
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Chief Executive Officer (principal executive officer) of |
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BlackRock Muni Intermediate Duration Fund, Inc. |
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Date: January 03, 2012 |
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By: | /s/ Neal J. Andrews |
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Neal J. Andrews |
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Chief Financial Officer (principal financial officer) of |
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BlackRock Muni Intermediate Duration Fund, Inc. |
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Date: January 03, 2012 |
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