UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-08707

 

Name of Fund: BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniHoldings Quality Fund, Inc., 55 East 52nd Street, New York, NY 10055

 

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

 

Date of fiscal year end: 04/30/2011

 

Date of reporting period: 01/31/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments January 31, 2011 (Unaudited)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 2.9%

 

 

 

 

 

 

 

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

 

$

2,330

 

$

2,409,360

 

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

 

 

2,170

 

 

2,018,122

 

 

 

 

 

 

 

 

 

 

 

 

4,427,482

 

Arizona — 0.4%

 

 

 

 

 

 

 

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

 

 

715

 

 

687,101

 

Arkansas — 4.0%

 

 

 

 

 

 

 

Arkansas Development Finance
Authority, Refunding RB, Series C
(NPFGC):

 

 

 

 

 

 

 

5.35%, 12/01/11 (a)

 

 

535

 

 

561,937

 

5.35%, 12/01/35

 

 

5,685

 

 

5,622,920

 

 

 

 

 

 

 

 

 

 

 

 

6,184,857

 

California — 19.8%

 

 

 

 

 

 

 

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

 

 

5,500

 

 

5,576,780

 

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

 

 

2,895

 

 

2,918,392

 

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

 

 

1,730

 

 

1,698,722

 

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

 

 

1,325

 

 

1,367,890

 

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

 

 

1,605

 

 

1,578,983

 

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

 

 

2,060

 

 

1,755,511

 

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

 

 

2,100

 

 

2,033,640

 

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

 

 

1,500

 

 

1,419,555

 

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

 

 

2,565

 

 

2,136,158

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

1,825

 

$

1,825,000

 

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

 

 

1,885

 

 

1,682,871

 

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

 

 

 

 

 

 

 

5.66%, 12/01/24

 

 

2,635

 

 

990,707

 

5.66%, 12/01/25

 

 

2,355

 

 

816,761

 

5.66%, 12/01/26

 

 

2,355

 

 

747,571

 

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

 

 

790

 

 

735,838

 

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

 

 

3,480

 

 

3,486,125

 

 

 

 

 

 

 

 

 

 

 

 

30,770,504

 

Colorado — 1.6%

 

 

 

 

 

 

 

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

 

 

1,900

 

 

2,002,429

 

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

 

 

455

 

 

444,503

 

 

 

 

 

 

 

 

 

 

 

 

2,446,932

 

District of Columbia — 1.6%

 

 

 

 

 

 

 

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

 

 

400

 

 

365,796

 

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

 

 

2,000

 

 

2,062,880

 

 

 

 

 

 

 

 

 

 

 

 

2,428,676

 

Florida — 12.4%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

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

 

 

175

 

 

25,454

 

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

 

 

3,900

 

 

3,622,554

 

Water & Sewer System (AGM),
5.00%, 10/01/39

 

 

6,640

 

 

6,217,762

 

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

 

 

2,215

 

 

2,226,518

 

 

Portfolio Abbreviations

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

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

ISD

Independent School District

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

S/F

Single-Family

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JANUARY 31, 2011

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

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

 

$

7,395

 

$

7,167,604

 

 

 

 

 

 

 

 

 

 

 

 

19,259,892

 

Georgia — 6.0%

 

 

 

 

 

 

 

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

 

 

3,495

 

 

3,500,487

 

City of Atlanta Georgia, RB, General,
Series A (AGM):

 

 

 

 

 

 

 

5.00%, 1/01/35

 

 

1,410

 

 

1,327,487

 

5.00%, 1/01/40

 

 

1,410

 

 

1,310,370

 

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

 

 

2,075

 

 

1,936,079

 

Metropolitan Atlanta Rapid Transit
Authority, RB, Third Indenture,
Series B (AGM), 5.00%, 7/01/34

 

 

1,260

 

 

1,239,449

 

 

 

 

 

 

 

 

 

 

 

 

9,313,872

 

Illinois — 12.9%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Refunding, Chicago School Reform
Board, Series A (NPFGC), 5.50%,
12/01/26

 

 

1,200

 

 

1,183,692

 

Chicago Transit Authority, RB, Federal
Transit Administration Section 5309,
Series A (AGC), 6.00%, 6/01/26

 

 

2,000

 

 

2,074,360

 

City of Chicago Illinois, GO, Refunding,
Projects, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 1/01/29

 

 

2,180

 

 

1,996,248

 

5.00%, 1/01/30

 

 

870

 

 

792,509

 

City of Chicago Illinois, RB (AGM):

 

 

 

 

 

 

 

General, Third Lien, Series C,
5.25%, 1/01/35

 

 

1,255

 

 

1,202,215

 

Series A, 5.00%, 1/01/33

 

 

8,000

 

 

7,360,080

 

City of Chicago Illinois, Refunding RB,
Second Lien (NPFGC), 5.50%,
1/01/30

 

 

1,310

 

 

1,308,480

 

Railsplitter Tobacco Settlement
Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

1,405

 

 

1,330,212

 

6.00%, 6/01/28

 

 

400

 

 

381,736

 

State of Illinois, RB, Build Illinois,
Series B, 5.25%, 6/15/28

 

 

2,500

 

 

2,411,500

 

 

 

 

 

 

 

 

 

 

 

 

20,041,032

 

Indiana — 4.4%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB,
Series A (NPFGC), 5.00%, 1/01/42

 

 

6,000

 

 

5,400,540

 

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

 

 

1,430

 

 

1,465,879

 

 

 

 

 

 

 

 

 

 

 

 

6,866,419

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Iowa — 1.1%

 

 

 

 

 

 

 

Iowa Finance Authority, Refunding RB,
Iowa Health System (AGC), 5.25%,
2/15/29

 

$

1,770

 

$

1,717,767

 

Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky Economic Development
Finance Authority, RB, Louisville
Arena, Sub-Series A-1 (AGC), 6.00%,
12/01/38

 

 

320

 

 

325,277

 

Kentucky State Property & Buildings
Commission, Refunding RB, Project
No. 93 (AGC), 5.25%, 2/01/29

 

 

1,000

 

 

1,003,890

 

 

 

 

 

 

 

 

 

 

 

 

1,329,167

 

Louisiana — 1.4%

 

 

 

 

 

 

 

Louisiana State Citizens Property
Insurance Corp., RB, Series C-3 (AGC),
6.13%, 6/01/25

 

 

2,055

 

 

2,217,407

 

Maine — 0.7%

 

 

 

 

 

 

 

City of Portland Maine, RB, General
(AGM), 5.25%, 1/01/35

 

 

1,180

 

 

1,157,887

 

Massachusetts — 1.8%

 

 

 

 

 

 

 

Massachusetts HFA, RB, Rental
Mortgage, Series C, AMT (AGM),
5.50%, 7/01/32

 

 

2,440

 

 

2,400,692

 

Massachusetts HFA, Refunding RB,
Housing Development, Series A, AMT
(NPFGC), 5.15%, 6/01/11

 

 

315

 

 

315,806

 

 

 

 

 

 

 

 

 

 

 

 

2,716,498

 

Michigan — 15.7%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series B (NPFGC),
5.50%, 7/01/29

 

 

2,410

 

 

2,277,812

 

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

 

 

2,000

 

 

2,316,140

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series C (BHAC),
5.75%, 7/01/27

 

 

1,580

 

 

1,624,035

 

Second Lien, Series E (BHAC),
5.75%, 7/01/31

 

 

3,240

 

 

3,253,381

 

Senior Lien, Series C-1 (AGM),
7.00%, 7/01/27

 

 

4,810

 

 

5,369,547

 

Senior Lien, Series C-2 (BHAC),
5.25%, 7/01/29

 

 

1,910

 

 

1,831,575

 

Michigan State Building Authority,
Refunding RB, Facilities Program,
Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

875

 

 

887,136

 

5.25%, 10/15/25

 

 

455

 

 

455,341

 

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

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,466,190

 

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

 

 

2,050

 

 

2,003,793

 

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

 

 

750

 

 

713,123

 

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

 

 

1,910

 

 

2,126,804

 

 

 

 

 

 

 

 

 

 

 

 

24,324,877

 

 

 

 

2

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JANUARY 31, 2011


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Minnesota — 0.9%

 

 

 

 

 

 

 

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

 

$

1,325

 

$

1,390,786

 

Nevada — 6.6%

 

 

 

 

 

 

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

3,510

 

 

3,247,101

 

Las Vegas-McCarran,
Series A-1, AMT (AGM), 5.00%,
7/01/23

 

 

1,750

 

 

1,685,652

 

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

 

 

6,000

 

 

5,300,400

 

 

 

 

 

 

 

 

 

 

 

 

10,233,153

 

New Jersey — 8.0%

 

 

 

 

 

 

 

New Jersey EDA, RB, Motor Vehicle
Surcharge, Series A (NPFGC), 5.25%,
7/01/33

 

 

6,700

 

 

6,587,038

 

New Jersey Health Care Facilities
Financing Authority, RB, Virtua Health
(AGC), 5.50%, 7/01/38

 

 

2,100

 

 

2,118,186

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System,
Series A (AGC), 5.63%, 12/15/28

 

 

3,500

 

 

3,691,940

 

 

 

 

 

 

 

 

 

 

 

 

12,397,164

 

New York — 3.0%

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series EE, 5.25%,
6/15/40

 

 

2,410

 

 

2,414,699

 

Second General Resolution,
Series EE, 5.38%, 6/15/43

 

 

790

 

 

792,647

 

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

 

 

1,400

 

 

1,397,928

 

 

 

 

 

 

 

 

 

 

 

 

4,605,274

 

Pennsylvania — 1.0%

 

 

 

 

 

 

 

Delaware River Port Authority, RB,
Series D (AGC), 5.00%, 1/01/40

 

 

1,720

 

 

1,644,010

 

Puerto Rico — 1.4%

 

 

 

 

 

 

 

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

 

 

2,115

 

 

2,165,802

 

Texas — 24.0%

 

 

 

 

 

 

 

City of Austin Texas, Refunding RB,
Series A (AGM):

 

 

 

 

 

 

 

5.00%, 11/15/28

 

 

1,080

 

 

1,067,386

 

5.00%, 11/15/29

 

 

1,365

 

 

1,338,819

 

City of Dallas Texas, Refunding RB
(AGC), 5.25%, 8/15/38

 

 

1,250

 

 

1,193,975

 

City of Houston Texas, Refunding RB,
Combined, First Lien, Series A (AGC),
6.00%, 11/15/35

 

 

4,000

 

 

4,321,880

 

Dallas Area Rapid Transit, Refunding
RB, Senior Lien, 5.25%, 12/01/38

 

 

2,000

 

 

2,006,220

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

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

 

$

600

 

$

644,322

 

Lower Colorado River Authority,
Refunding RB, LCRA Transmission
Services Project (AGC), 5.50%,
5/15/36

 

 

2,610

 

 

2,578,158

 

Lubbock Cooper ISD Texas, GO, School
Building (AGC), 5.75%, 2/15/42

 

 

775

 

 

789,950

 

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

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

6,710

 

 

6,305,924

 

Series A, 5.13%, 1/01/28

 

 

5,000

 

 

4,805,650

 

Series A, 5.63%, 1/01/33

 

 

6,585

 

 

6,293,416

 

Series B, 5.75%, 1/01/40

 

 

6,275

 

 

5,897,119

 

 

 

 

 

 

 

 

 

 

 

 

37,242,819

 

Utah — 1.5%

 

 

 

 

 

 

 

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

 

 

2,485

 

 

2,274,744

 

Virginia — 1.7%

 

 

 

 

 

 

 

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

 

 

975

 

 

975,936

 

Virginia Public School Authority, RB,
School Financing, 6.50%, 12/01/35

 

 

1,500

 

 

1,628,040

 

 

 

 

 

 

 

 

 

 

 

 

2,603,976

 

Washington — 1.3%

 

 

 

 

 

 

 

Chelan County Public Utility District
No. 1, RB, Chelan Hydro System,
Series A, AMT (AMBAC), 5.45%,
7/01/37

 

 

2,310

 

 

2,094,454

 

Total Municipal Bonds – 137.0%

 

 

 

 

 

212,542,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (d)

 

 

 

 

 

 

 

Alabama — 1.3%

 

 

 

 

 

 

 

Mobile Board of Water & Sewer
Commissioners, RB (NPFGC), 5.00%,
1/01/31

 

 

2,120

 

 

2,042,238

 

California — 2.8%

 

 

 

 

 

 

 

City of San Jose California, GO, Libraries,
Parks, and Public Safety Project
(NPFGC), 5.00%, 9/01/30

 

 

1,258

 

 

1,259,013

 

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

 

 

3,149

 

 

3,115,855

 

 

 

 

 

 

 

 

 

 

 

 

4,374,868

 

Colorado — 3.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Catholic Health, Series C-3 (AGM),
5.10%, 10/01/41

 

 

5,610

 

 

5,131,972

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JANUARY 31, 2011

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (d)

 

Par
(000)

 

Value

 

 

 

 

 

 

 

District of Columbia — 0.7%

 

 

 

 

 

 

 

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

 

$

1,040

 

$

1,124,202

 

Florida — 8.5%

 

 

 

 

 

 

 

City of St. Petersburg Florida, Refunding
RB (NPFGC), 5.00%, 10/01/35

 

 

4,302

 

 

3,964,312

 

County of Miami-Dade Florida, GO,
Building Better Communities Program,
Series B-1, 6.00%, 7/01/38

 

 

7,500

 

 

7,912,125

 

Lee County Housing Finance Authority,
RB, Multi-County Program, Series A-2,
AMT (Ginnie Mae), 6.00%, 9/01/40

 

 

1,290

 

 

1,349,972

 

 

 

 

 

 

 

 

 

 

 

 

13,226,409

 

Georgia — 2.6%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB
(AGM), 5.25%, 10/01/34

 

 

4,000

 

 

4,012,920

 

Illinois — 1.6%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB,
Second Lien (AGM), 5.25%, 11/01/33

 

 

2,509

 

 

2,418,635

 

Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky State Property & Building
Commission, Refunding RB, Project
No. 93 (AGC), 5.25%, 2/01/27

 

 

1,406

 

 

1,430,425

 

Massachusetts — 5.2%

 

 

 

 

 

 

 

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

 

 

8,008

 

 

8,014,633

 

Nevada — 6.0%

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

5,000

 

 

5,351,150

 

Series B, 5.50%, 7/01/29

 

 

3,749

 

 

3,852,841

 

 

 

 

 

 

 

 

 

 

 

 

9,203,991

 

New Jersey — 1.5%

 

 

 

 

 

 

 

New Jersey State Housing & Mortgage
Finance Agency, RB, S/F Housing,
Series CC, 5.25%, 10/01/29

 

 

2,401

 

 

2,355,722

 

Washington — 2.7%

 

 

 

 

 

 

 

City of Bellevue Washington, GO,
Refunding (NPFGC), 5.50%,
12/01/39

 

 

4,002

 

 

4,204,438

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 37.1%

 

 

 

 

 

57,540,453

 

Total Long-Term Investments
(Cost – $279,872,393) – 174.1%

 

 

 

 

 

270,083,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 

FFI Institutional Tax-Exempt Fund,
0.15% (e)(f)

 

 

3,620,525

 

$

3,620,525

 

Total Short-Term Securities
(Cost – $3,620,525) – 2.3%

 

 

 

 

 

3,620,525

 

Total Investments
(Cost – $283,492,918*) – 176.4%

 

 

 

 

 

273,703,530

 

Other Assets Less Liabilities – 4.7%

 

 

 

 

 

7,295,708

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (25.0)%

 

 

 

 

 

(38,840,919

)

Preferred Shares, at Redemption Value – (56.1)%

 

 

 

 

 

(87,005,536

)

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

155,152,783

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

251,635,439

 

 

 

 

 

 

Gross unrealized appreciation

 

 

 

 

$

2,703,763

 

Gross unrealized depreciation

 

 

 

 

 

(12,451,086

)

 

 

 

 

 

Net unrealized depreciation

 

 

 

 

$

(9,747,323

)

 

 

 

 

 

 

 

(a)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(b)

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


 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

Morgan Stanley Co. Inc.

 

$

1,698,722

 

$

16,418

 

 

 

(c)

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

 

 

(d)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(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
Held at
April 30,
2010

 

Net
Activity

 

Shares
Held at
January 31,
2011

 

Income

 

FFI Institutional Tax-Exempt Fund

 

 

8,653,666

 

 

(5,033,141

)

 

3,620,525

 

$

10,927

 

 

 

(f)

Represents the current yield as of report date.


 

 

 

4

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JANUARY 31, 2011


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

 

 

•

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

 

 

 

 

•

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

 

 

 

 

•

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

 

 

 

 

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

 

 

The following table summarizes the inputs used as of January 31, 2011 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

—

 

$

270,083,005

 

 

—

 

$

270,083,005

 

Short-Term Securities

 

$

3,620,525

 

 

—

 

 

—

 

 

3,620,525

 

Total

 

$

3,620,525

 

$

270,083,005

 

 

—

 

$

273,703,530

 

 

 

 

 

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

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JANUARY 31, 2011

5

Item 2 –

Controls and Procedures

 

 

2(a) –

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

 

 

2(b) –

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

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

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

 

 

 

BlackRock MuniHoldings Quality Fund, Inc.
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Quality Fund, Inc.
   
  Date: March 25, 2011
   
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Quality Fund, Inc.
   
  Date: March 25, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniHoldings Quality Fund, Inc.
     
  Date: March 25, 2011