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: 04/30/2012

 

Date of reporting period: 07/31/2011

 

Item 1 – Schedule of Investments

 

 

 
 

 

 

Schedule of Investments July 31, 2011 (Unaudited)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds


Par
(000)


Value


Alabama — 2.6%

 

 

 

 

 

 

 

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

 

$

2,330

 

$

2,492,797

 

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

 

 

2,170

 

 

1,965,434

 

 

 

 

 

 

 

4,458,231

 

Arizona — 0.5%

 

 

 

 

 

 

 

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

 

 

715

 

 

748,298

 

Arkansas — 3.4%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.35%, 12/01/35

 

 

4,890

 

 

4,914,059

 

5.35%, 12/01/35 (a)

 

 

795

 

 

816,544

 

 

 

 

 

 

 

5,730,603

 

California — 21.7%

 

 

 

 

 

 

 

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

 

 

5,500

 

 

5,795,185

 

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

 

 

2,895

 

 

3,041,140

 

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

 

 

1,730

 

 

1,842,934

 

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

 

 

1,325

 

 

1,393,357

 

City of San Jose California, Airport
Revenue, RB, Series A-1, AMT, 5.75%,
3/01/34

 

 

2,180

 

 

2,160,816

 

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

 

 

1,605

 

 

1,669,489

 

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

 

 

1,840

 

 

1,713,923

 

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

 

 

2,100

 

 

2,134,923

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

1,500

 

$

1,576,875

 

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

 

 

1,575

 

 

1,626,565

 

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

 

 

1,825

 

 

1,870,096

 

Redondo Beach Unified School District,
GO, Election of 2008, Series E,
5.50%, 8/01/34

 

 

1,335

 

 

1,411,816

 

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

 

 

1,250

 

 

1,395,300

 

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

 

 

 

 

 

 

 

5.66%, 12/01/24

 

 

2,635

 

 

1,100,060

 

5.66%, 12/01/25

 

 

2,355

 

 

909,289

 

5.66%, 12/01/26

 

 

2,355

 

 

838,121

 

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

 

 

690

 

 

691,470

 

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

 

 

1,850

 

 

1,964,663

 

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

 

 

3,480

 

 

3,513,477

 

 

 

 

 

 

 

36,649,499

 

Colorado — 1.5%

 

 

 

 

 

 

 

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

 

 

1,900

 

 

2,107,347

 

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

 

 

455

 

 

472,085

 

 

 

 

 

 

 

2,579,432

 

District of Columbia — 1.5%

 

 

 

 

 

 

 

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

 

 

400

 

 

400,376

 

 

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.

AMT

Alternative Minimum Tax (subject to)

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

FGIC

Financial Guaranty Insurance Co.

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

Syncora

Syncora Guarantee

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JULY 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

 

District of Columbia (concluded)

 

 

 

 

 

 

 

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

 

$

2,000

 

$

2,126,340

 

 

 

 

 

 

 

2,526,716

 

Florida — 8.7%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,616,500

 

County of Miami-Dade Florida, RB,
Miami International Airport, Series A,
AMT (AGM), 5.50%, 10/01/41

 

 

960

 

 

931,066

 

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

 

 

2,215

 

 

2,237,128

 

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

 

 

4,645

 

 

4,799,771

 

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

 

 

3,995

 

 

4,131,589

 

 

 

 

 

 

 

14,716,054

 

Georgia — 3.0%

 

 

 

 

 

 

 

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

 

 

3,495

 

 

3,583,913

 

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

 

 

1,525

 

 

1,541,500

 

 

 

 

 

 

 

5,125,413

 

Illinois — 15.2%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,248,660

 

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

 

 

2,000

 

 

2,230,560

 

City of Chicago Illinois, RB, Series A
(AGM), 5.00%, 1/01/33

 

 

8,000

 

 

8,043,280

 

City of Chicago Illinois, RB, General,
Third Lien:

 

 

 

 

 

 

 

Series A, 5.75%, 1/01/39

 

 

1,145

 

 

1,194,853

 

Series C (AGC), 5.25%, 1/01/35

 

 

1,255

 

 

1,276,298

 

City of Chicago Illinois, Refunding RB:

 

 

 

 

 

 

 

General, Third Lien, Series C,
6.50%, 1/01/41

 

 

5,225

 

 

5,750,165

 

Second Lien (NPFGC), 5.50%,
1/01/30

 

 

1,310

 

 

1,390,080

 

Railsplitter Tobacco Settlement
Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

1,405

 

 

1,455,650

 

6.00%, 6/01/28

 

 

400

 

 

411,940

 

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

 

 

2,500

 

 

2,641,750

 

 

 

 

 

 

 

25,643,236

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Indiana — 4.4%

 

 

 

 

 

 

 

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

 

$

6,000

 

$

5,944,140

 

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

 

 

1,430

 

 

1,495,465

 

 

 

 

 

 

 

7,439,605

 

Iowa — 0.7%

 

 

 

 

 

 

 

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

 

 

1,080

 

 

1,120,813

 

Kentucky — 0.8%

 

 

 

 

 

 

 

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

 

 

320

 

 

329,907

 

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

 

 

1,000

 

 

1,058,420

 

 

 

 

 

 

 

1,388,327

 

Louisiana — 1.3%

 

 

 

 

 

 

 

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

 

 

2,055

 

 

2,246,773

 

Massachusetts — 1.4%

 

 

 

 

 

 

 

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

 

 

2,440

 

 

2,389,419

 

Michigan — 12.9%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

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

 

 

2,410

 

 

2,442,583

 

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

 

 

2,000

 

 

2,358,060

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,580

 

 

1,670,313

 

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

 

 

3,240

 

 

3,405,693

 

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

 

 

4,810

 

 

5,649,201

 

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

 

 

1,910

 

 

1,964,569

 

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

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

875

 

 

949,454

 

5.25%, 10/15/25

 

 

455

 

 

490,217

 

Michigan Strategic Fund, Refunding RB,
Detroit Edison Co. Project, Series A,
AMT (Syncora), 5.50%, 6/01/30

 

 

750

 

 

737,850

 

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

 

 

1,910

 

 

2,205,076

 

 

 

 

 

 

 

21,873,016

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JULY 31, 2011

2

 

 
 

 

 

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, Series B (AGC), 6.50%,
11/15/38

 

$

1,325

 

$

1,443,428

 

Nevada — 6.5%

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO, Series A, 5.25%,
7/01/34

 

 

2,000

 

 

2,085,420

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

2,510

 

 

2,523,454

 

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

 

 

1,750

 

 

1,786,768

 

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

 

 

4,750

 

 

4,650,392

 

 

 

 

 

 

 

11,046,034

 

New Jersey — 7.5%

 

 

 

 

 

 

 

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

 

 

6,700

 

 

6,812,091

 

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

 

 

2,100

 

 

2,163,756

 

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

 

 

3,500

 

 

3,715,355

 

 

 

 

 

 

 

12,691,202

 

New York — 4.3%

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB:

 

 

 

 

 

 

 

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

 

 

3,410

 

 

3,566,383

 

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

 

 

2,170

 

 

2,301,914

 

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

 

 

1,400

 

 

1,454,208

 

 

 

 

 

 

 

7,322,505

 

Pennsylvania — 1.0%

 

 

 

 

 

 

 

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

 

 

1,720

 

 

1,726,966

 

Puerto Rico — 1.4%

 

 

 

 

 

 

 

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

 

 

2,115

 

 

2,268,887

 

Texas — 24.1%

 

 

 

 

 

 

 

Austin Community College District, RB,
Educational Facilities Project, Round
Rock Campus, 5.25%, 8/01/33

 

 

2,500

 

 

2,590,325

 

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

 

 

 

 

 

 

 

5.00%, 11/15/28

 

 

1,080

 

 

1,144,994

 

5.00%, 11/15/29

 

 

1,365

 

 

1,435,352

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

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

 

$

4,000

 

$

4,451,600

 

Clifton Higher Education Finance Corp.,
RB, Baylor University, 5.25%,
3/01/32

 

 

1,840

 

 

1,949,388

 

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

 

 

3,175

 

 

3,300,095

 

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

 

 

600

 

 

664,548

 

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

 

 

775

 

 

815,114

 

North Texas Tollway Authority, RB,
Special Projects System, Series A,
5.50%, 9/01/41

 

 

3,150

 

 

3,342,686

 

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

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

4,885

 

 

4,921,198

 

Series A, 5.13%, 1/01/28

 

 

2,930

 

 

2,991,706

 

Series A, 5.63%, 1/01/33

 

 

6,585

 

 

6,768,392

 

Series B, 5.75%, 1/01/40

 

 

6,275

 

 

6,321,498

 

 

 

 

 

 

 

40,696,896

 

Utah — 1.2%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,001,260

 

Virginia — 1.6%

 

 

 

 

 

 

 

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

 

 

975

 

 

975,361

 

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

 

 

1,500

 

 

1,682,640

 

 

 

 

 

 

 

2,658,001

 

Washington — 1.5%

 

 

 

 

 

 

 

City of Seattle Washington, Refunding
RB, Series A, 5.25%, 2/01/36

 

 

1,375

 

 

1,454,035

 

State of Washington, GO, Various
Purpose, Series B, 5.25%, 2/01/36

 

 

1,075

 

 

1,145,359

 

 

 

 

 

 

 

2,599,394

 

Total Municipal Bonds – 129.6%

 

 

 

 

 

219,090,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (c)

 

 

 

 

 

 

 

Alabama — 1.3%

 

 

 

 

 

 

 

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

 

 

2,120

 

 

2,160,301

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JULY 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 (TOB) Trusts (c)

 

Par
(000)

 

Value

 

California — 2.7%

 

 

 

 

 

 

 

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

 

$

1,258

 

$

1,279,375

 

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

 

 

3,149

 

 

3,256,061

 

 

 

 

 

 

 

4,535,436

 

Colorado — 3.3%

 

 

 

 

 

 

 

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

 

 

5,610

 

 

5,575,386

 

District of Columbia — 0.7%

 

 

 

 

 

 

 

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

 

 

1,040

 

 

1,193,040

 

Florida — 8.0%

 

 

 

 

 

 

 

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

 

 

4,302

 

 

4,330,629

 

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

 

 

7,500

 

 

8,106,900

 

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

 

 

1,065

 

 

1,174,014

 

 

 

 

 

 

 

13,611,543

 

Georgia — 2.4%

 

 

 

 

 

 

 

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

 

 

4,000

 

 

4,122,080

 

Illinois — 1.5%

 

 

 

 

 

 

 

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

 

 

2,509

 

 

2,572,874

 

Kentucky — 0.9%

 

 

 

 

 

 

 

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

 

 

1,406

 

 

1,509,385

 

Massachusetts — 4.9%

 

 

 

 

 

 

 

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

 

 

8,008

 

 

8,322,777

 

Nevada — 5.7%

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

5,000

 

 

5,482,100

 

Series B, 5.50%, 7/01/29

 

 

3,749

 

 

4,074,316

 

 

 

 

 

 

 

9,556,416

 

New Jersey — 1.5%

 

 

 

 

 

 

 

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

 

 

2,401

 

 

2,466,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (c)

 

Par
(000)

 

Value

 

Washington — 2.6%

 

 

 

 

 

 

 

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

 

$

4,002

 

$

4,354,038

 

Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts –
35.5%

 

 

 

 

 

59,979,327

 

Total Long-Term Investments
(Cost – $272,666,448) – 165.1%

 

 

 

 

 

279,069,335

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.01% (d)(e)

 

 

10,064,207

 

 

10,064,207

 

Total Short-Term Securities
(Cost – $10,064,207) – 5.9%

 

 

 

 

 

10,064,207

 

Total Investments
(Cost – $282,730,655*) – 171.0%

 

 

 

 

 

289,133,542

 

Liabilities in Excess of Other Assets – (0.8)%

 

 

 

 

 

(1,409,699

)

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (18.7)%

 

 

 

 

 

(31,679,566

)

AMPS, at Redemption Value – (51.5)%

 

 

 

 

 

 

 

 

 

(87,002,094

)

Net Assets Applicable to Common Shares– 100.0%

 

 

 

 

$

169,042,183

 

 

 

*

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


 

 

 

 

 

Aggregate cost

 

$

251,021,270

 

Gross unrealized appreciation

 

$

8,357,286

 

Gross unrealized depreciation

 

 

(1,910,428

)

Net unrealized appreciation

 

$

6,446,858

 

 

 

(a)

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

 

 

(b)

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

 

 

(c)

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

 

 

(d)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
April 30, 2011

 

Net
Activity

 

Shares
Held at
July 31, 2011

 

Income

 

FFI Institutional Tax-Exempt Fund

 

 

6,952,084

 

 

3,112,123

 

 

10,064,207

 

$

1,380

 

 

 

(e)

Represents the current yield as of report date.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JULY 31, 2011

4

 

 
 

 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

 

•

Financial futures contracts sold as of July 31, 2011 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

52

 

10-Year US
Treasury
Note

 

Chicago
Board
of Trade

 

September
2011

 

$

6,375,589

 

$

(160,161

)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized in three broad levels for financial reporting purposes as follows:

 

 

 

 

•

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

 

 

 

 

•

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

 

 

 

 

•

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

The 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 policies, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following tables summarize the inputs used as of July 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 Investments1

 

 

—

 

$

279,069,335

 

 

—

 

$

279,069,335

 

Short-Term Securities

 

$

10,064,207

 

 

—

 

 

—

 

 

10,064,207

 

Total

 

$

10,064,207

 

$

279,069,335

 

 

—

 

$

289,133,542

 

 

 

 

 

1

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(160,161

)

 

—

 

 

—

 

$

(160,161

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

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


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JULY 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: September 26, 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: September 26, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniHoldings Quality Fund, Inc.
     
  Date: September 26, 2011