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

 


 

 

(BLACKROCK LOGO)

October 31, 2011


 

 

 

Semi-Annual Report (Unaudited)

 

 

 

BlackRock MuniAssets Fund, Inc. (MUA)

 

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

BlackRock MuniHoldings Fund, Inc. (MHD)

 

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

BlackRock MuniVest Fund II, Inc. (MVT)


 

Not FDIC Insured § No Bank Guarantee § May Lose Value




 

 

 

Table of Contents


 

 

 

 

 

Page

 

 

 

Dear Shareholder

 

3

Semi-Annual Report:

 

 

Municipal Market Overview

 

4

Fund Summaries

 

5

The Benefits and Risks of Leveraging

 

12

Derivative Financial Instruments

 

12

Financial Statements:

 

 

Schedules of Investments

 

13

Statements of Assets and Liabilities

 

48

Statements of Operations

 

49

Statements of Changes in Net Assets

 

50

Statements of Cash Flows

 

52

Financial Highlights

 

53

Notes to Financial Statements

 

60

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

 

68

Officers and Directors

 

72

Additional Information

 

73


 

 

 

 

 

 

2

SEMI-ANNUAL REPORT

OCTOBER 31, 2011




 

 

Dear Shareholder

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.

 

Sincerely,

 

-s- Rob Kapito

 

Rob Kapito

President, BlackRock Advisors, LLC

 

(PHOTO OF ROB KAPITO)

 

“While markets remain volatile and uncertainties abound, BlackRock remains dedicated to finding opportunities and managing risk in this environment.”

 

Rob Kapito

President, BlackRock Advisors, LLC

 

 

Total Returns as of October 31, 2011


 

 

 

 

 

 

 

 

 

 

 

6-month

 

 

12-month

 

US large cap equities

 

 

(7.11

)%

 

8.09

%

(S&P 500® Index)

 

 

 

 

 

 

 

US small cap equities

 

 

(13.76

)

 

6.71

 

(Russell 2000® Index)

 

 

 

 

 

 

 

International equities

 

 

(14.90

)

 

(4.08

)

(MSCI Europe, Australasia,

 

 

 

 

 

 

 

Far East Index)

 

 

 

 

 

 

 

Emerging market

 

 

(15.91

)

 

(7.72

)

equities (MSCI Emerging

 

 

 

 

 

 

 

Markets Index)

 

 

 

 

 

 

 

3-month Treasury

 

 

0.04

 

 

0.13

 

bill (BofA Merrill Lynch

 

 

 

 

 

 

 

3-Month Treasury

 

 

 

 

 

 

 

Bill Index)

 

 

 

 

 

 

 

US Treasury securities

 

 

12.11

 

 

7.79

 

(BofA Merrill Lynch 10-

 

 

 

 

 

 

 

Year US Treasury Index)

 

 

 

 

 

 

 

US investment grade

 

 

4.98

 

 

5.00

 

bonds (Barclays

 

 

 

 

 

 

 

Capital US Aggregate

 

 

 

 

 

 

 

Bond Index)

 

 

 

 

 

 

 

Tax-exempt municipal

 

 

5.56

 

 

3.78

 

bonds (Barclays Capital

 

 

 

 

 

 

 

Municipal Bond Index)

 

 

 

 

 

 

 

US high yield bonds

 

 

(0.95

)

 

5.16

 

(Barclays Capital US

 

 

 

 

 

 

 

Corporate High Yield 2%

 

 

 

 

 

 

 

Issuer Capped Index)

 

 

 

 

 

 

 


 

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

 


 

 

 

 

 

 

 

THIS PAGE NOT PART OF YOUR FUND REPORT

3




 

 

Municipal Market Overview

 

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.

(LINE GRAPH)

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.

 

 

 

 

 

 

4

SEMI-ANNUAL REPORT

OCTOBER 31, 2011




 

 

 

 

Fund Summary as of October 31, 2011

BlackRock MuniAssets Fund, Inc.


 

Fund Overview

BlackRock MuniAssets Fund, Inc.’s (MUA) (the “Fund”) investment objective is to provide high current income exempt from federal income taxes by investing primarily in a portfolio of medium- to lower-grade or unrated municipal obligations, the interest on which, in the opinion of bond counsel, is exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests at least 65% of its assets in municipal bonds that are rated in the medium to lower categories by nationally recognized rating services (for example, Baa or lower by Moody’s Investors Service, Inc. or BBB or lower by Standard & Poor’s Corporation) or non-rated securities which are of comparable quality. The Fund may invest directly in such securities or synthetically through the use of derivatives.

 

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

 

Performance

For the 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.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 

 

Fund Information

 

 

Symbol on New York Stock Exchange (“NYSE”)

MUA

Initial Offering Date

June 25, 1993

Yield on Closing Market Price as of October 31, 2011 ($12.05)1

6.22%

Tax Equivalent Yield2

9.57%

Current Monthly Distribution per Common Share3

$0.0625

Current Annualized Distribution per Common Share3

$0.7500

Leverage as of October 31, 20114

7%


 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

3

The distribution rate is not constant and is subject to change.

 

 

4

Represents tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


10/31/11

 

4/30/11

 

Change

 

High

 

Low

 

Market Price

 

$

12.05

 

$

11.27

 

 

6.92

%

$

12.17

 

$

10.97

 

Net Asset Value

 

$

12.67

 

$

12.14

 

 

4.37

%

$

12.85

 

$

12.14

 

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

 

 

29

%

 

27

%

Corporate

 

 

19

 

 

22

 

Transportation

 

 

14

 

 

15

 

County/City/Special District/School District

 

 

13

 

 

14

 

Utilities

 

 

11

 

 

8

 

Education

 

 

6

 

 

6

 

State

 

 

5

 

 

3

 

Tobacco

 

 

3

 

 

1

 

Housing

 

 

 

 

4

 

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 


10/31/11

 

4/30/11

 

AAA/Aaa

 

 

1

%

 

3

%

AA/Aa

 

 

13

 

 

8

 

A

 

 

9

 

 

12

 

BBB/Baa

 

 

28

 

 

28

 

BB/Ba

 

 

8

 

 

7

 

B

 

 

7

 

 

5

 

CCC/Caa

 

 

4

 

 

5

 

CC/Ca

 

 

1

 

 

1

 

Not Rated6

 

 

29

 

 

31

 


 

 

5

Using the higher of S&P’s or Moody’s Investors Service (“Moody’s”) ratings.

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of 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.


 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

OCTOBER 31, 2011

5




 

 

 

 

Fund Summary as of October 31, 2011

BlackRock MuniEnhanced Fund, Inc.


 

Fund Overview

BlackRock MuniEnhanced Fund, Inc.’s (MEN) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests primarily in long-term municipal bonds that are investment grade quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

 

Performance

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.

 

 

Fund Information

 

 

 

Symbol on NYSE

MEN

Initial Offering Date

March 2, 1989

Yield on Closing Market Price as of October 31, 2011 ($10.81)1

6.33%

Tax Equivalent Yield2

9.74%

Current Monthly Distribution per Common Share3

$0.0570

Current Annualized Distribution per Common Share3

$0.6840

Leverage as of October 31, 20114

39%


 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

3

The distribution rate is not constant and is subject to change.

 

 

4

Represents Variable Rate Demand Preferred Shares (“VRDP Shares”) and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/31/11

 

4/30/11

 

Change

 

High

 

Low

 

Market Price

 

$

10.81

 

$

9.99

 

 

8.21

%

$

11.20

 

$

9.65

 

Net Asset Value

 

$

11.18

 

$

10.30

 

 

8.54

%

$

11.38

 

$

10.30

 

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

 

 

29

%

 

29

%

Transportation

 

 

23

 

 

23

 

State

 

 

18

 

 

19

 

Utilities

 

 

14

 

 

14

 

Health

 

 

8

 

 

6

 

Education

 

 

5

 

 

5

 

Corporate

 

 

2

 

 

2

 

Housing

 

 

1

 

 

2

 

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 


10/31/11

 

4/30/11

 

AAA/Aaa

 

 

12

%

 

12

%

AA/Aa

 

 

58

 

 

59

 

A

 

 

25

 

 

25

 

BBB/Baa

 

 

4

 

 

4

 

B

 

 

1

 

 

 


 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 

 

 

6

SEMI-ANNUAL REPORT

OCTOBER 31, 2011




 

 

 

 

Fund Summary as of October 31, 2011

BlackRock MuniHoldings Fund, Inc.


 

Fund Overview

BlackRock MuniHoldings Fund, Inc.’s (MHD) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

 

Performance

For the 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.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

Fund Information


 

 

Symbol on NYSE

MHD

Initial Offering Date

May 2, 1997

Yield on Closing Market Price as of 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.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution rate is not constant and is subject to change.

 

 

 

 

4

Represents Auction Market Preferred Shares (“AMPS”) and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to AMPS and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

Sector Allocations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

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.


 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

OCTOBER 31, 2011

7




 

 

 

 

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.

 

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.


 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

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.


 

 

 

 

 

 

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 Benefits and Risks of Leveraging

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

To leverage, 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
Leverage

 

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




 

 

 

Schedule of Investments October 31, 2011 (Unaudited)

BlackRock MuniAssets Fund, Inc. (MUA)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 0.7%

 

 

 

 

 

 

 

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

 

$

2,165

 

$

2,323,954

 

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

 

 

895

 

 

884,269

 

 

 

 

 

 

 

3,208,223

 

Alaska — 1.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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
Schools Project, Series A, 6.63%, 7/01/20

 

 

2,120

 

 

1,655,444

 

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

 

 

7,750

 

 

6,622,375

 

Pima County IDA, RB, Arizona Charter Schools Project,
Series E, 7.25%, 7/01/31

 

 

2,255

 

 

2,256,330

 

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

 

 

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
Bonds, District No. 5, 6.38%, 1/01/15

 

 

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,
Georgia-Pacific Corp. Project, AMT, 5.60%, 10/01/26

 

 

1,740

 

 

1,726,028

 

California — 3.6%

 

 

 

 

 

 

 

California Statewide Communities Development Authority,
Refunding RB:

 

 

 

 

 

 

 

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

 

 

2,175

 

 

2,178,893

 

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

 

 

1,000

 

 

1,082,200

 

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

 

 

3,500

 

 

3,771,075

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

2,320

 

$

2,255,226

 

City of San Buenaventura California, RB, Community
Memorial Health System, 7.50%, 12/01/41

 

 

3,665

 

 

3,729,394

 

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

 

 

 

 

 

 

 

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,
CAB, 7.44%, 9/01/35 (a)

 

 

3,695

 

 

715,241

 

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

 

 

 

 

 

 

 

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
Cargo BDL LLC Project, AMT, 8.00%, 4/01/30

 

 

3,450

 

 

2,304,497

 

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

 

 

 

 

 

 

 

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
River Project, 6.00%, 10/01/40

 

 

1,000

 

 

1,005,850

 

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

 

 

4,225

 

 

3,874,663

 

 

 

 

 

 

 

4,880,513

 

District of Columbia — 2.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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.,
Refunding RB, Asset-Backed, 6.50%, 5/15/33

 

 

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
(000)

 

Value

 

District of Columbia (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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
International Airport, Series A-1, 5.38%, 10/01/41

 

 

1,065

 

 

1,094,948

 

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

 

 

1,180

 

 

1,121,484

 

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

 

 

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,
Gerdau Ameristeel US Inc., AMT, 5.30%, 5/01/37

 

 

2,200

 

 

1,943,876

 

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

 

 

1,365

 

 

1,432,513

 

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

 

 

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,
Special Assessment Bonds, Series A:

 

 

 

 

 

 

 

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
Retirement Life Community, 5.50%, 11/15/33

 

 

3,500

 

 

3,378,655

 

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

 

 

5,180

 

 

1,812,948

 

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

 

 

 

 

 

 

 

5.50%, 1/01/27

 

 

955

 

 

940,455

 

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

 

 

615

 

 

626,248

 

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

 

 

3,885

 

 

3,137,565

 

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

 

 

1,715

 

 

1,715,497

 

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

 

 

4,525

 

 

2,809,527

 

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

 

 

 

 

 

 

 

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
Lakes Project, 5.50%, 1/01/31

 

 

1,035

 

 

963,078

 

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

 

 

3,365

 

 

3,890,378

 

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

 

 

2,765

 

 

2,684,096

 

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

 

 

2,005

 

 

2,032,769

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Georgia (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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,
Water, 6.00%, 7/01/25

 

 

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
Airlines Inc. Project, 5.50%, 12/01/30

 

 

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,
Series A, 7.25%, 11/01/30

 

 

2,000

 

 

2,246,740

 

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

 

 

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%,
7/01/24

 

 

1,175

 

 

1,048,593

 

Metropolitan Pier & Exposition Authority, Refunding RB,
CAB, McCormick Place Expansion Project, Series B,
(AGM), 6.27%, 6/15/46 (a)

 

 

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,
Sedgebrook Project, 6.25%, 3/01/34

 

 

1,825

 

 

1,611,566

 

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

 

 

1,465

 

 

1,366,347

 

 

 

 

 

 

 

24,256,529

 

Indiana — 0.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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,
Owensboro Medical Health System:

 

 

 

 

 

 

 

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,
Refunding RB, Owensboro Medical Health System,
Series B, 6.38%, 3/01/40

 

 

1,135

 

 

1,185,587

 

 

 

 

 

 

 

4,939,148

 

Louisiana — 1.6%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,217,550

 

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

 

 

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
(000)

 

Value

 

Maine — 0.7%

 

 

 

 

 

 

 

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

 

$

2,955

 

$

3,041,227

 

Maryland — 2.6%

 

 

 

 

 

 

 

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

 

 

3,615

 

 

3,576,609

 

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

 

 

4,785

 

 

4,803,948

 

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

 

 

1,000

 

 

437,500

 

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

 

 

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%,
7/01/42

 

 

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,
RB, Jordan Hospital, Series E, 6.75%, 10/01/33

 

 

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,
Series A, 6.75%, 11/01/39

 

 

900

 

 

962,874

 

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

 

 

3,000

 

 

2,727,570

 

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

 

 

6,310

 

 

7,484,038

 

 

 

 

 

 

 

12,485,723

 

Minnesota — 0.4%

 

 

 

 

 

 

 

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

 

 

1,785

 

 

1,976,191

 

Missouri — 0.5%

 

 

 

 

 

 

 

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

 

 

2,315

 

 

2,403,734

 

Nevada — 0.2%

 

 

 

 

 

 

 

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

 

 

960

 

 

982,925

 

New Hampshire — 0.4%

 

 

 

 

 

 

 

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

 

 

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%,
9/15/12

 

 

4,050

 

 

4,089,487

 

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

 

 

2,000

 

 

1,959,040

 

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

 

 

2,000

 

 

1,952,800

 

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

 

 

4,330

 

 

4,093,885

 

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

 

 

1,250

 

 

1,282,975

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New Jersey (concluded)

 

 

 

 

 

 

 

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

 

$

4,000

 

$

4,016,560

 

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

 

 

 

 

 

 

 

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

 

 

3,870

 

 

39

 

New Jersey Health Care Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

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,
Transportation System, Series C (AMBAC), 6.06%,
12/15/35 (a)

 

 

6,210

 

 

1,439,851

 

 

 

 

 

 

 

33,597,592

 

New York — 6.8%

 

 

 

 

 

 

 

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

 

 

3,695

 

 

3,644,785

 

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

 

 

1,000

 

 

989,350

 

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

 

 

1,400

 

 

1,385,090

 

Hudson New York Yards Infrastructure Corp., RB, Series A,
5.75%, 2/15/47

 

 

4,515

 

 

4,780,978

 

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

 

 

5,685

 

 

6,655,714

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

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,
6.50%, 7/01/24

 

 

610

 

 

579,872

 

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

 

 

1,100

 

 

1,010,383

 

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

 

 

1,270

 

 

1,317,841

 

Port Authority of New York & New Jersey, RB, JFK
International Air Terminal, 6.00%, 12/01/36

 

 

1,340

 

 

1,387,329

 

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

 

 

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,
Asset-Backed, Senior Series A-2, 5.13%, 6/01/24

 

 

3,350

 

 

2,572,398

 

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

 

 

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
(000)

 

Value

 

Pennsylvania — 7.2%

 

 

 

 

 

 

 

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

 

$

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
Lutheran, 6.38%, 1/01/39

 

 

6,165

 

 

6,340,764

 

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

 

 

 

 

 

 

 

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
Continuing Care, 6.13%, 2/01/28

 

 

2,330

 

 

2,033,601

 

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

 

 

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
Sub-Series C, 6.48%, 8/01/38 (a)

 

 

4,445

 

 

828,459

 

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

 

 

2,650

 

 

2,984,086

 

 

 

 

 

 

 

3,812,545

 

Rhode Island — 0.7%

 

 

 

 

 

 

 

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

 

 

4,245

 

 

3,314,623

 

Tennessee — 0.4%

 

 

 

 

 

 

 

Knox County Health Educational & Housing Facilities
Board Tennessee, Refunding RB, Covenant, Series A
(AGM), 5.82%, 1/01/40 (a)

 

 

5,820

 

 

1,140,778

 

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

 

 

600

 

 

513,864

 

 

 

 

 

 

 

1,654,642

 

Texas — 12.6%

 

 

 

 

 

 

 

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

 

 

5,040

 

 

5,137,524

 

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

 

 

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
Airlines, Series E, AMT, 6.75%, 7/01/21

 

 

4,550

 

 

4,467,372

 

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

 

 

1,000

 

 

1,154,020

 

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

 

 

 

 

 

 

 

7.13%, 12/01/31

 

 

1,500

 

 

1,685,235

 

7.25%, 12/01/35

 

 

1,110

 

 

1,245,420

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Houston Higher Education Finance Corp., RB, Cosmos
Foundation, Inc. Series A, 6.88%, 5/15/41

 

$

595

 

$

637,287

 

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

 

 

860

 

 

911,531

 

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

 

 

2,975

 

 

2,822,472

 

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

 

 

2,090

 

 

2,246,311

 

North Texas Tollway Authority, RB:

 

 

 

 

 

 

 

CAB, Special Projects System, Series B, 5.88%,
9/01/37 (a)

 

 

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
Electric Co. Project, Series A, Mandatory Put Bonds,
5.50%, 5/01/22 (e)

 

 

3,230

 

 

3,228,902

 

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

 

 

 

 

 

 

 

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
Corp., RB, Senior Lien:

 

 

 

 

 

 

 

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

 

 

4,455

 

 

4,789,526

 

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

 

 

3,500

 

 

3,734,605

 

Texas Public Finance Authority, RB, Charter School
Finance Corporation, Series A, 5.38%, 2/15/37

 

 

1,000

 

 

931,370

 

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

 

 

 

 

 

 

 

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
Secured, Hovensa Coker Project, AMT, 6.50%,
7/01/21

 

 

5,100

 

 

4,869,123

 

Utah — 0.4%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,024,980

 

Vermont — 0.3%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,485,008

 

Virginia — 1.4%

 

 

 

 

 

 

 

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

 

 

3,635

 

 

3,635,291

 

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

 

 

40

 

 

36,116

 

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

 

 

 

 

 

 

 

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,
Refunding, GO, Snoqualmie Valley Hospital, 7.00%,
12/01/40

 

 

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
(000)

 

Value

 

Wisconsin (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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
Tender Option Bond Trusts (g)

 

 

 

 

 

 

 

District of Columbia — 1.7%

 

 

 

 

 

 

 

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

 

 

6,681

 

 

7,877,347

 

Florida — 3.3%

 

 

 

 

 

 

 

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

 

 

15,000

 

 

15,042,450

 

Illinois — 1.7%

 

 

 

 

 

 

 

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

 

 

7,180

 

 

7,520,188

 

New York — 4.9%

 

 

 

 

 

 

 

New York City Municipal Water & Sewer Finance
Authority, RB:

 

 

 

 

 

 

 

Second General Resolution, Series EE, 5.50%,
6/15/43

 

 

7,605

 

 

8,463,224

 

Second General Resolution, Series HH, 5.00%,
6/15/31

 

 

8,609

 

 

9,319,134

 

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

 

 

4,004

 

 

4,144,736

 

 

 

 

 

 

 

21,927,094

 

Washington — 1.9%

 

 

 

 

 

 

 

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

 

 

7,966

 

 

8,484,575

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 13.5%

 

 

 

 

 

60,851,654

 

Total Long-Term Investments
(Cost — $474,710,339) — 104.4%

 

 

 

 

 

472,726,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.01% (h)(i)

 

 

3,791,874

 

 

3,791,874

 

 

 

 

 

 

 

 

 

 

 

Par
(000
)

 

 

 

 

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

 

$

3,400

 

 

3,400,000

 

Total Short-Term Securities
(Cost — $7,191,874) — 1.6%

 

 

 

 

 

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
Interest Expense and Fees Payable — (7.0)%

 

 

 

 

 

(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
Appreciation

 

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
Held at
April 30,
2011

 

Net
Activity

 

Shares
Held at
October 31,
2011

 

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
Value

 

Unrealized
Appreciation

 

57

 

 

10-Year US
Treasury Note

 

 

Chicago Board
of Trade

 

 

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
Investments1

 

 

 

$

472,726,156

 

 

 

$

472,726,156

 

Short-Term
Securities

 

$

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
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

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
(000)

 

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,
Series B (NPFGC), 5.25%, 12/01/30

 

 

400

 

 

408,616

 

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

 

 

1,200

 

 

1,383,492

 

 

 

 

 

 

 

1,792,108

 

Arizona — 1.2%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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,
CAB, Subordinate Lien, Series A (AMBAC) (a):

 

 

 

 

 

 

 

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,
Senior, Public Improvements Project, Series A (AGM),
6.00%, 9/01/24

 

 

5,000

 

 

5,776,300

 

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

 

 

2,400

 

 

470,976

 

California Health Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

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
(NPFGC), 5.00%, 11/01/35

 

 

1,405

 

 

1,420,975

 

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

 

 

2,000

 

 

2,043,360

 

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

 

 

850

 

 

885,700

 

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

 

 

1,420

 

 

1,484,695

 

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

 

 

850

 

 

887,349

 

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

 

 

1,300

 

 

1,364,064

 

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

 

 

5,160

 

 

5,292,973

 

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

 

 

 

 

 

 

 

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
Bonds, Refunding, Project Area No. 1 (NPFGC), 5.13%,
3/01/30

 

 

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
Bonds, Refunding, Paguay Redevelopment Project
(AMBAC), 5.13%, 6/15/33

 

 

1,750

 

 

1,577,485

 

Poway Unified School District, GO, CAB, School Facilities
Improvement, Election of 2007, 6.26%, 8/01/36 (b)

 

 

3,750

 

 

817,537

 

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

 

 

1,075

 

 

1,104,616

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

San Diego Unified School District California, GO, CAB,
Election of 2008, Series C, 6.84%, 7/01/38 (b)

 

$

1,600

 

$

318,960

 

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

 

 

2,175

 

 

2,483,611

 

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

 

 

 

 

 

 

 

5.00%, 8/01/34

 

 

700

 

 

728,455

 

5.00%, 8/01/38

 

 

600

 

 

621,984

 

San Mateo County Community College District, GO,
CAB, Election of 2001, Series C (NPFGC), 5.54%,
9/01/30 (b)

 

 

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,
Parking & Capital Projects (NPFGC), 5.13%, 9/01/30

 

 

6,145

 

 

6,211,489

 

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

 

 

2,325

 

 

2,414,931

 

Walnut Valley Unified School District, GO, CAB,
Election of 2007, Series B, 6.89%, 8/01/36 (b)

 

 

5,500

 

 

1,228,205

 

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

 

 

5,035

 

 

5,227,287

 

 

 

 

 

 

 

73,814,956

 

Colorado — 1.9%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

1,200

 

 

1,125,636

 

5.50%, 12/01/33

 

 

675

 

 

625,408

 

Colorado Health Facilities Authority, Refunding RB,
Series D (Adventist Health System/Sunbelt
Obligated Group), 5.25%, 11/15/35 (c)

 

 

2,130

 

 

2,156,241

 

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

 

 

295

 

 

301,732

 

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

 

 

2,000

 

 

2,120,460

 

 

 

 

 

 

 

6,329,477

 

Connecticut — 0.2%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facilities
Authority, RB, Hartford Healthcare, Series A, 5.00%,
7/01/32

 

 

675

 

 

678,551

 

District of Columbia — 1.6%

 

 

 

 

 

 

 

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

 

 

5,530

 

 

5,356,800

 

Florida — 14.9%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,651,600

 

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

 

 

3,000

 

 

3,215,910

 

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

 

 

850

 

 

912,560

 

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

 

 

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
Communities Program, Series B-1, 5.75%, 7/01/33

 

 

1,400

 

 

1,518,174

 

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

 

 

4,625

 

 

4,806,901

 

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

 

 

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
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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
Health System/Sunbelt, Series B, 6.00%, 11/15/37

 

 

1,450

 

 

1,565,884

 

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

 

 

4,050

 

 

4,147,200

 

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

 

 

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
Memorial Hospital Project, Series A, 5.63%, 7/01/39

 

 

275

 

 

280,030

 

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

 

 

2,000

 

 

2,131,860

 

 

 

 

 

 

 

49,022,600

 

Georgia — 3.6%

 

 

 

 

 

 

 

Burke County Development Authority, RB, Oglethorpe
Power — Vogtle Project, Series C, 5.70%, 1/01/43

 

 

1,150

 

 

1,190,457

 

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

 

 

825

 

 

860,005

 

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

 

 

7,475

 

 

9,806,676

 

 

 

 

 

 

 

11,857,138

 

Illinois — 20.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

(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,
Refunding, Series A:

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,248,340

 

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

 

 

1,000

 

 

1,073,470

 

City of Chicago Illinois, Board of Education, GO, Series A,
5.50%, 12/01/39 (d)

 

 

2,375

 

 

2,516,312

 

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

 

 

550

 

 

577,297

 

City of Chicago Illinois, Transit Authority, RB, Sales Tax
Revenue, 5.25%, 12/01/36 (d)

 

 

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,
Series A, AMT (NPFGC), 5.75%, 1/01/21

 

 

4,500

 

 

4,526,145

 

County of Cook Illinois, GO, Capital Improvement,
Series C (AMBAC), 5.50%, 11/15/26 (e)

 

 

2,460

 

 

2,591,536

 

Illinois Finance Authority, RB, Carle Foundation, Series A,
5.75%, 8/15/34

 

 

650

 

 

654,771

 

Illinois Finance Authority, Refunding RB, Carle Foundation,
Series A, 6.00%, 8/15/41

 

 

1,000

 

 

1,023,670

 

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

 

 

1,000

 

 

1,034,650

 

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

 

 

17,620

 

 

18,546,812

 

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

 

 

9,950

 

 

2,690,579

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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%,
6/01/28

 

 

675

 

 

701,879

 

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

 

 

8,800

 

 

10,485,288

 

 

 

 

 

 

 

67,462,666

 

Indiana — 1.3%

 

 

 

 

 

 

 

Indiana Finance Authority, Wastewater Utility, RB,
First Lien, CWA Authority Project, Series A, 5.25%,
10/01/38

 

 

1,100

 

 

1,173,535

 

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

 

 

400

 

 

410,848

 

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

 

 

 

 

 

 

 

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%,
8/15/37

 

 

5,725

 

 

6,013,311

 

Louisiana — 0.6%

 

 

 

 

 

 

 

Jefferson Parish Hospital Service District No. 1,
Refunding RB, Jefferson Medical Center, Series A,
6.00%, 1/01/39

 

 

420

 

 

439,849

 

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

 

 

1,250

 

 

1,401,600

 

 

 

 

 

 

 

1,841,449

 

Massachusetts — 1.9%

 

 

 

 

 

 

 

Massachusetts HFA, RB, AMT (AGM), Rental Mortgage,
Series F, 5.25%, 1/01/46

 

 

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,
General, Series A (NPFGC), 5.00%, 8/01/34

 

 

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%,
7/01/36

 

 

2,600

 

 

2,570,750

 

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

 

 

2,500

 

 

2,679,575

 

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

 

 

425

 

 

434,673

 

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

 

 

1,700

 

 

1,871,156

 

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

 

 

1,500

 

 

1,509,330

 

Michigan State Building Authority, Refunding RB,
Facilities Program:

 

 

 

 

 

 

 

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)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

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

 

$

4,300

 

$

4,274,114

 

Michigan State Housing Development Authority, RB,
Series C, AMT, 5.50%, 12/01/28

 

 

1,100

 

 

1,120,273

 

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

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,803,550

 

Nevada — 3.7%

 

 

 

 

 

 

 

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

 

 

2,750

 

 

2,583,625

 

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

 

 

850

 

 

947,750

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

3,800

 

 

3,961,082

 

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

 

 

75

 

 

66,913

 

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

 

 

1,500

 

 

1,515,555

 

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

 

 

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%,
7/01/31

 

 

5,025

 

 

5,277,607

 

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

 

 

7,800

 

 

8,076,666

 

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

 

 

2,000

 

 

2,202,720

 

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

 

 

4,800

 

 

5,422,416

 

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

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,159,560

 

 

 

 

 

 

 

28,596,366

 

New York — 4.0%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,643,955

 

Hudson New York Yards Infrastructure Corp., RB, Series A,
5.75%, 2/15/47

 

 

700

 

 

741,237

 

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

 

 

4,000

 

 

4,683,000

 

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

 

 

 

 

 

 

 

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,
5.75%, 3/15/36

 

 

1,200

 

 

1,356,576

 

 

 

 

 

 

 

13,145,571

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

North Carolina — 0.7%

 

 

 

 

 

 

 

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

 

$

2,550

 

$

2,342,328

 

Ohio — 0.5%

 

 

 

 

 

 

 

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

 

 

530

 

 

603,363

 

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

 

 

1,025

 

 

1,034,881

 

 

 

 

 

 

 

1,638,244

 

Pennsylvania — 0.8%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,518,705

 

Pennsylvania Turnpike Commission, RB, Subordinate,
Special Motor License Fund, 6.00%, 12/01/36

 

 

575

 

 

663,263

 

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

 

 

400

 

 

434,688

 

 

 

 

 

 

 

2,616,656

 

Puerto Rico — 2.6%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A:

 

 

 

 

 

 

 

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.,
Refunding RB, Public Schools Financing Program,
Series E (AGC), 6.00%, 5/15/29

 

 

2,375

 

 

2,630,978

 

South Carolina — 1.3%

 

 

 

 

 

 

 

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

 

 

115

 

 

125,849

 

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

 

 

1,000

 

 

1,087,410

 

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

 

 

3,000

 

 

3,156,510

 

 

 

 

 

 

 

4,369,769

 

Tennessee — 2.1%

 

 

 

 

 

 

 

Memphis Center City Revenue Finance Corp., RB,
Subordinate, Pyramid & Pinch District, Series B,
5.25%, 11/01/30

 

 

1,130

 

 

1,200,455

 

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

 

 

5,000

 

 

5,715,800

 

 

 

 

 

 

 

6,916,255

 

Texas — 10.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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
Improvement Corp., RB, Series A (NPFGC), 5.50%,
11/01/33

 

 

13,000

 

 

13,073,190

 

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

 

 

1,725

 

 

1,840,265

 

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

 

 

 

 

 

 

 

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)
(Percentages shown are based on Net Assets)

 

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

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
(AMBAC), 5.50%, 8/15/39

 

 

3,150

 

 

3,140,802

 

 

 

 

 

 

 

35,166,542

 

Washington — 1.9%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit Authority, RB,
Series A, 5.00%, 11/01/36

 

 

1,600

 

 

1,681,120

 

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

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

900

 

 

904,257

 

5.25%, 10/01/39

 

 

625

 

 

640,781

 

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

 

 

2,800

 

 

2,921,772

 

 

 

 

 

 

 

6,147,930

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

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

 

 

1,375

 

 

1,420,925

 

Total Municipal Bonds — 120.0%

 

 

 

 

 

395,268,825

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

 

 

 

 

 

 

Arizona — 0.9%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,284,216

 

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

 

 

1,500

 

 

1,572,825

 

 

 

 

 

 

 

2,857,041

 

California — 4.9%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,623,200

 

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

 

 

7,458

 

 

7,583,955

 

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

 

 

404

 

 

439,952

 

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

 

 

2,810

 

 

2,946,482

 

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

 

 

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,
Catholic Health, Series A, 5.50%, 7/01/34

 

 

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,
Series A, 6.00%, 10/01/35

 

 

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
Tender Option Bond Trusts (f)

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

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

 

$

1,349

 

$

1,424,419

 

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

 

 

10,000

 

 

10,279,100

 

 

 

 

 

 

 

23,594,874

 

Georgia — 5.5%

 

 

 

 

 

 

 

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

 

 

17,356

 

 

17,963,711

 

Illinois — 2.0%

 

 

 

 

 

 

 

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

 

 

1,880

 

 

1,982,923

 

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

 

 

4,399

 

 

4,603,562

 

 

 

 

 

 

 

6,586,485

 

Louisiana — 1.7%

 

 

 

 

 

 

 

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

 

 

5,400

 

 

5,571,018

 

Massachusetts — 3.4%

 

 

 

 

 

 

 

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

 

 

10,600

 

 

11,308,035

 

Nevada — 3.4%

 

 

 

 

 

 

 

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

 

 

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
Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40

 

 

1,260

 

 

1,419,565

 

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

 

 

1,300

 

 

1,424,683

 

 

 

 

 

 

 

2,844,248

 

Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

580

 

 

608,275

 

South Carolina — 2.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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,
Santee Cooper, Series A, 5.50%, 1/01/38

 

 

1,275

 

 

1,386,448

 

 

 

 

 

 

 

8,677,357

 

Texas — 1.2%

 

 

 

 

 

 

 

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

 

 

2,200

 

 

2,420,506

 

North East ISD Texas, GO, School Building, Series A
(PSF-GTD), 5.00%, 8/01/37

 

 

1,600

 

 

1,694,000

 

 

 

 

 

 

 

4,114,506

 

Utah — 1.6%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,276,250

 

Virginia — 0.1%

 

 

 

 

 

 

 

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

 

 

350

 

 

373,758

 


 

 

 

See Notes to Financial Statements.

 

 

 

22

SEMI-ANNUAL REPORT

OCTOBER 31, 2011




 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniEnhanced Fund, Inc. (MEN)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

Par
(000)

 

Value

 

Washington — 1.3%

 

 

 

 

 

 

 

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

 

$

4,004

 

$

4,224,709

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

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

 

 

1,430

 

 

1,446,243

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 38.6%

 

 

 

 

 

127,047,770

 

Total Long-Term Investments
(Cost — $503,142,365) — 158.6%

 

 

 

 

 

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
(Cost — $8,274,103) — 2.5%

 

 

 

 

 

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
Interest Expense and Fees Payable — (19.4)%

 

 

 

 

 

(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
Appreciation

 

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
Held at
April 30,
2011

 

Net
Activity

 

Shares
Held at
October 31,
2011

 

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
Investments1

 

 

 

$

522,316,595

 

 

 

$

522,316,595

 

Short-Term
Securities

 

$

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
(000)

 

Value

 

Alabama — 1.9%

 

 

 

 

 

 

 

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

 

$

4,550

 

$

4,192,461

 

Alaska — 0.5%

 

 

 

 

 

 

 

Northern Tobacco Securitization Corp., RB, Asset-Backed,
Series A, 5.00%, 6/01/46

 

 

1,660

 

 

1,047,161

 

Arizona — 4.2%

 

 

 

 

 

 

 

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

 

 

2,200

 

 

1,476,486

 

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

 

 

2,215

 

 

1,892,717

 

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

 

 

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
Bonds, District No. 5, 6.38%, 1/01/15

 

 

260

 

 

260,585

 

 

 

 

 

 

 

9,379,587

 

Arkansas — 0.5%

 

 

 

 

 

 

 

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

 

 

1,155

 

 

1,145,725

 

California — 14.1%

 

 

 

 

 

 

 

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

 

 

255

 

 

250,344

 

California Health Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

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
Projects, Sub-Series I-1, 6.38%, 11/01/34

 

 

820

 

 

901,254

 

California Statewide Communities Development
Authority, RB:

 

 

 

 

 

 

 

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

 

 

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,
5.25%, 5/15/39

 

 

555

 

 

592,312

 

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

 

 

4,115

 

 

4,330,996

 

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

 

 

 

 

 

 

 

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,
Election of 2008, Series A, 6.06%, 7/01/29 (b)

 

 

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,
4.75%, 5/15/38

 

 

1,665

 

 

1,674,457

 

 

 

 

 

 

 

31,551,086

 

Colorado — 2.0%

 

 

 

 

 

 

 

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

 

 

1,455

 

 

1,363,422

 

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

 

 

1,000

 

 

934,480

 

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

 

 

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
(000)

 

Value

 

Connecticut — 2.5%

 

 

 

 

 

 

 

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

 

$

2,700

 

$

1,803,519

 

Connecticut State Health & Educational Facility
Authority, RB:

 

 

 

 

 

 

 

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.,
Indian River Project, 6.00%, 10/01/40

 

 

790

 

 

794,622

 

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

 

 

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),
7.10%, 10/01/35 (b)

 

 

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%,
12/01/39

 

 

2,375

 

 

2,556,141

 

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

 

 

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
International Airport, Series A-1, 5.38%, 10/01/41

 

 

2,620

 

 

2,693,674

 

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

 

 

2,095

 

 

1,969,656

 

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

 

 

1,900

 

 

1,693,280

 

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

 

 

1,570

 

 

1,643,288

 

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

 

 

2,400

 

 

2,407,656

 

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

 

 

665

 

 

406,475

 

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

 

 

1,495

 

 

1,339,505

 

 

 

 

 

 

 

20,037,613

 

Georgia — 1.4%

 

 

 

 

 

 

 

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

 

 

585

 

 

601,199

 

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

 

 

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%,
7/01/30

 

 

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
(000)

 

Value

 

Illinois — 9.9%

 

 

 

 

 

 

 

City of Chicago Illinois, Board of Education, GO,
Series A (c):

 

 

 

 

 

 

 

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,
General, Third Lien, Series A, 5.75%, 1/01/39

 

 

2,000

 

 

2,182,820

 

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

 

 

4,055

 

 

4,664,953

 

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

 

 

1,200

 

 

1,228,968

 

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

 

 

730

 

 

751,864

 

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

 

 

1,115

 

 

1,154,360

 

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

 

 

2,580

 

 

2,589,185

 

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

 

 

 

 

 

 

 

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%,
6/15/34

 

 

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,
Series A, 5.25%, 10/01/38

 

 

1,090

 

 

1,162,866

 

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

 

 

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,
Refunding RB, Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

 

700

 

 

731,199

 

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

 

 

700

 

 

708,442

 

 

 

 

 

 

 

1,439,641

 

Louisiana — 2.1%

 

 

 

 

 

 

 

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

 

 

570

 

 

603,385

 

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

 

 

3,500

 

 

3,652,285

 

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

 

 

430

 

 

438,260

 

 

 

 

 

 

 

4,693,930

 

Maine — 0.1%

 

 

 

 

 

 

 

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

 

 

210

 

 

213,326

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Maryland — 1.1%

 

 

 

 

 

 

 

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

 

$

300

 

$

296,814

 

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

 

 

580

 

 

582,297

 

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

 

 

1,520

 

 

1,579,994

 

 

 

 

 

 

 

2,459,105

 

Massachusetts — 3.9%

 

 

 

 

 

 

 

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

 

 

1,165

 

 

1,222,749

 

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

 

 

1,255

 

 

1,280,539

 

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

 

 

2,900

 

 

2,742,414

 

Massachusetts State School Building Authority, RB,
Sales Tax Revenue, Senior, Series B, 5.00%,
10/15/41 (c)

 

 

3,150

 

 

3,363,822

 

 

 

 

 

 

 

8,609,524

 

Michigan — 2.2%

 

 

 

 

 

 

 

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

 

 

635

 

 

752,786

 

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

 

 

1,150

 

 

1,150,069

 

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

 

 

955

 

 

960,787

 

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

 

 

2,105

 

 

2,151,100

 

 

 

 

 

 

 

5,014,742

 

Minnesota — 1.1%

 

 

 

 

 

 

 

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

 

 

2,135

 

 

2,363,680

 

Mississippi — 0.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 7/01/17

 

 

350

 

 

393,327

 

5.25%, 7/01/19

 

 

435

 

 

478,365

 

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

 

 

675

 

 

726,502

 

 

 

 

 

 

 

1,598,194

 

New Hampshire — 1.5%

 

 

 

 

 

 

 

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

 

 

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%,
9/15/12

 

 

1,000

 

 

1,009,750

 

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

 

 

2,950

 

 

2,789,136

 

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

 

 

3,500

 

 

3,648,925

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series A, 5.50%, 6/15/41

 

 

1,575

 

 

1,700,654

 

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

 

 

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
(000)

 

Value

 

New York — 5.8%

 

 

 

 

 

 

 

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

 

$

1,000

 

$

989,350

 

Hudson New York Yards Infrastructure Corp., RB,
Series A, 5.75%, 2/15/47

 

 

1,115

 

 

1,180,685

 

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

 

 

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
Bonds, AMT, 8.38%, 11/01/16

 

 

725

 

 

734,396

 

Series C, 6.80%, 6/01/28

 

 

535

 

 

551,788

 

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

 

 

850

 

 

882,020

 

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

 

 

 

 

 

 

 

6.00%, 12/01/36

 

 

900

 

 

931,788

 

6.00%, 12/01/42

 

 

875

 

 

915,005

 

State of New York Dormitory Authority, RB, North
Shore-Long Island Jewish Obligated Group, Series A,
5.00%, 5/01/41

 

 

870

 

 

860,735

 

 

 

 

 

 

 

12,863,212

 

North Carolina — 0.4%

 

 

 

 

 

 

 

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

 

 

970

 

 

986,490

 

Pennsylvania — 5.2%

 

 

 

 

 

 

 

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

 

 

1,510

 

 

1,238,910

 

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

 

 

1,700

 

 

1,558,288

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

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

 

 

2,520

 

 

2,794,201

 

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

 

 

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%,
7/01/33

 

 

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

 

 

3,860

 

 

4,346,630

 

 

 

 

 

 

 

5,815,791

 

South Carolina — 1.6%

 

 

 

 

 

 

 

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

 

 

2,285

 

 

2,410,081

 

South Carolina State Public Service Authority,
Refunding RB, Santee Cooper Project, Series C,
5.00%, 12/01/36

 

 

1,065

 

 

1,144,385

 

 

 

 

 

 

 

3,554,466

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Tennessee — 2.4%

 

 

 

 

 

 

 

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

 

$

2,685

 

$

2,688,920

 

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

 

 

2,685

 

 

2,683,523

 

 

 

 

 

 

 

5,372,443

 

Texas — 15.0%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,000,000

 

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

 

 

3,655

 

 

3,697,325

 

Central Texas Regional Mobility Authority, RB, Senior
Lien, 6.25%, 1/01/46

 

 

1,480

 

 

1,505,130

 

City of Dallas Texas, Refunding RB, Waterworks & Sewer
System, 5.00%, 10/01/35

 

 

1,050

 

 

1,139,544

 

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

 

 

1,070

 

 

1,136,030

 

City of Houston Texas, Refunding RB, Sub-Lien,
Series A, AMT:

 

 

 

 

 

 

 

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.,
Refunding RB, Memorial Hermann Healthcare
System, Series B, 7.25%, 12/01/35

 

 

1,910

 

 

2,143,020

 

Harris County Texas Metropolitan Transit Authority,
Sales & Use Tax Bonds, Series 2011 A, 5.00%,
11/01/41

 

 

2,355

 

 

2,515,493

 

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

 

 

450

 

 

476,964

 

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

 

 

1,675

 

 

1,687,345

 

North Texas Tollway Authority, RB:

 

 

 

 

 

 

 

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

 

 

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
Electric Co. Project, Series B, Mandatory Put Bonds,
AMT, 5.75%, 5/01/30 (d)

 

 

250

 

 

250,000

 

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

 

 

 

 

 

 

 

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.,
RB, Senior Lien:

 

 

 

 

 

 

 

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

 

 

2,990

 

 

3,214,519

 

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

 

 

2,000

 

 

2,134,060

 

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

 

 

875

 

 

829,010

 

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

 

 

2,660

 

 

2,652,233

 

 

 

 

 

 

 

33,579,839

 

US Virgin Islands — 1.5%

 

 

 

 

 

 

 

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

 

 

3,460

 

 

3,303,366

 

Utah — 1.1%

 

 

 

 

 

 

 

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

 

 

2,525

 

 

2,558,961

 

Vermont — 1.1%

 

 

 

 

 

 

 

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

 

 

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
(000)

 

Value

 

Washington — 1.2%

 

 

 

 

 

 

 

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

 

$

1,255

 

$

1,198,537

 

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

 

 

1,375

 

 

1,515,154

 

 

 

 

 

 

 

2,713,691

 

Wisconsin — 4.4%

 

 

 

 

 

 

 

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

 

 

4,980

 

 

5,571,973

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,710

 

 

1,767,114

 

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

 

 

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,
5.00%, 1/01/42

 

 

210

 

 

214,681

 

Total Municipal Bonds — 117.4%

 

 

 

 

 

261,879,516

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 

California — 7.9%

 

 

 

 

 

 

 

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

 

 

2,270

 

 

2,458,837

 

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

 

 

1,845

 

 

1,993,504

 

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

 

 

1,620

 

 

1,699,833

 

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

 

 

748

 

 

814,726

 

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

 

 

6,600

 

 

6,891,786

 

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

 

 

3,494

 

 

3,692,434

 

 

 

 

 

 

 

17,551,120

 

Colorado — 2.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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,
Catholic Health, Series A, 5.50%, 7/01/34

 

 

1,490

 

 

1,560,603

 

 

 

 

 

 

 

5,846,648

 

Connecticut — 3.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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,
Emory University, Series C, 5.00%, 9/01/38

 

 

2,259

 

 

2,373,781

 

Massachusetts — 2.4%

 

 

 

 

 

 

 

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

 

 

4,994

 

 

5,327,809

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 

New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

$

1,409

 

$

1,558,501

 

New York — 4.5%

 

 

 

 

 

 

 

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

 

 

1,110

 

 

1,222,701

 

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

 

 

4,034

 

 

4,175,783

 

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

 

 

4,240

 

 

4,600,828

 

 

 

 

 

 

 

9,999,312

 

North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

 

1,080

 

 

1,141,830

 

Ohio — 4.5%

 

 

 

 

 

 

 

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

 

 

9,650

 

 

10,042,948

 

Tennessee — 1.0%

 

 

 

 

 

 

 

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

 

 

2,250

 

 

2,334,127

 

Texas — 2.1%

 

 

 

 

 

 

 

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

 

 

4,620

 

 

4,819,399

 

Virginia — 2.8%

 

 

 

 

 

 

 

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

 

 

3,750

 

 

4,038,748

 

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

 

 

2,094

 

 

2,163,222

 

 

 

 

 

 

 

6,201,970

 

Washington — 0.9%

 

 

 

 

 

 

 

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

 

 

1,860

 

 

1,962,037

 

Wisconsin — 1.8%

 

 

 

 

 

 

 

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

 

 

3,959

 

 

4,004,980

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 35.8%

 

 

 

 

 

79,992,030

 

Total Long-Term Investments
(Cost — $331,707,465) — 153.2%

 

 

 

 

 

341,871,546

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.01% (f)(g)

 

 

6,651,301

 

 

6,651,301

 


 

 

 

 

 

 

 

 

 

 

Par
(000)

 

 

 

 

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

 

$

2,255

 

 

2,255,000

 

Total Short-Term Securities
(Cost — 8,906,301) — 4.0%

 

 

 

 

 

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
Interest Expense and Fees Payable — (19.3)%

 

 

 

 

 

(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
Appreciation

 

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
Held at
April 30,
2011

 

Net
Activity

 

Shares
Held at
October 31,
2011

 

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
Value

Unrealized
Appreciation

45

10-year US
Treasury Note

Chicago Board
of Trade

December
2011

$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
Investments1

 

 

 

$

341,871,546

 

 

 

$

341,871,546

 

Short-Term
Securities

 

$

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
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

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
(000)

 

Value

 

Alabama — 1.9%

 

 

 

 

 

 

 

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

 

$

3,450

 

$

3,178,899

 

Alaska — 0.6%

 

 

 

 

 

 

 

Northern Tobacco Securitization Corp., RB, Asset-Backed,
Series A, 5.00%, 6/01/46

 

 

1,660

 

 

1,047,161

 

Arizona — 2.6%

 

 

 

 

 

 

 

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

 

 

2,060

 

 

1,760,270

 

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

 

 

925

 

 

885,660

 

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

 

 

1,220

 

 

1,279,231

 

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

 

 

470

 

 

471,057

 

 

 

 

 

 

 

4,396,218

 

Arkansas — 0.4%

 

 

 

 

 

 

 

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

 

 

830

 

 

823,335

 

California — 19.6%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,331,500

 

California Health Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

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
Capital Projects, Sub-Series l-1, 6.38%, 11/01/34

 

 

600

 

 

659,454

 

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

 

 

1,090

 

 

1,070,151

 

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

 

 

400

 

 

426,892

 

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

 

 

2,975

 

 

3,131,158

 

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

 

 

1,750

 

 

1,751,803

 

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

 

 

2,525

 

 

929,099

 

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

 

 

 

 

 

 

 

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,
4.75%, 5/15/38

 

 

4,605

 

 

4,631,156

 

 

 

 

 

 

 

32,881,806

 

Colorado — 2.0%

 

 

 

 

 

 

 

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

 

 

1,055

 

 

988,599

 

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

 

 

860

 

 

803,653

 

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

 

 

510

 

 

540,717

 

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

 

 

920

 

 

987,077

 

 

 

 

 

 

 

3,320,046

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Connecticut — 1.6%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB:

 

 

 

 

 

 

 

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

 

$

685

 

$

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.,
Indian River Project, 6.00%, 10/01/40

 

 

570

 

 

573,335

 

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

 

 

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),
7.08%, 10/01/34 (a)

 

 

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
Assessment Bonds, 6.00%, 5/01/35

 

 

1,535

 

 

1,464,467

 

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

 

 

1,725

 

 

1,856,566

 

County of Broward Florida, Water & Sewer Utility, RB,
Series A, 5.25%, 10/01/34

 

 

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
International Airport, Series A-1, 5.38%, 10/01/41

 

 

330

 

 

339,279

 

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

 

 

1,515

 

 

1,424,357

 

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

 

 

1,380

 

 

1,229,856

 

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

 

 

1,135

 

 

1,187,982

 

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

 

 

490

 

 

299,508

 

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

 

 

1,185

 

 

1,061,748

 

 

 

 

 

 

 

12,731,705

 

Georgia — 1.3%

 

 

 

 

 

 

 

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

 

 

420

 

 

431,630

 

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

 

 

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,
5.25%, 7/01/30

 

 

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
(000)

 

Value

 

Idaho — 1.2%

 

 

 

 

 

 

 

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

 

$

2,000

 

$

2,001,620

 

Illinois — 9.2%

 

 

 

 

 

 

 

City of Chicago Illinois, Board of Education, GO,
Series A (b):

 

 

 

 

 

 

 

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,
General, Third Lien, Series A, 5.75%, 1/01/39

 

 

2,500

 

 

2,728,525

 

City of Chicago Illinois, Refunding RB, O’Hare
International Airport, General, Third Lien, Series C,
6.50%, 1/01/41

 

 

2,935

 

 

3,376,483

 

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

 

 

1,000

 

 

1,024,140

 

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

 

 

530

 

 

545,873

 

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

 

 

800

 

 

828,240

 

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

 

 

 

 

 

 

 

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%,
6/15/34

 

 

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,
Series A, 5.25%, 10/01/38

 

 

790

 

 

842,812

 

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

 

 

1,660

 

 

1,738,136

 

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

 

 

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,
Refunding RB, Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

 

510

 

 

532,731

 

Louisiana — 2.0%

 

 

 

 

 

 

 

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

 

 

420

 

 

444,600

 

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

 

 

2,500

 

 

2,608,775

 

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

 

 

310

 

 

315,955

 

 

 

 

 

 

 

3,369,330

 

Maine — 0.1%

 

 

 

 

 

 

 

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

 

 

150

 

 

152,376

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Maryland — 1.1%

 

 

 

 

 

 

 

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

 

$

220

 

$

217,664

 

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

 

 

415

 

 

416,643

 

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

 

 

1,095

 

 

1,138,220

 

 

 

 

 

 

 

1,772,527

 

Massachusetts — 5.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.75%, 6/20/22

 

 

600

 

 

648,294

 

6.00%, 6/20/44

 

 

1,500

 

 

1,604,415

 

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

 

 

845

 

 

886,887

 

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

 

 

910

 

 

928,519

 

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

 

 

2,100

 

 

1,985,886

 

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

 

 

1,080

 

 

1,107,745

 

Massachusetts School Building Authority, RB, Sales
Tax Revenue, Senior, Series B, 5.00%, 10/15/41 (b)

 

 

2,280

 

 

2,434,766

 

 

 

 

 

 

 

9,596,512

 

Michigan — 2.2%

 

 

 

 

 

 

 

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

 

 

460

 

 

545,325

 

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

 

 

905

 

 

905,054

 

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

 

 

690

 

 

694,182

 

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

 

 

1,520

 

 

1,553,288

 

 

 

 

 

 

 

3,697,849

 

Minnesota — 1.0%

 

 

 

 

 

 

 

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

 

 

1,540

 

 

1,704,949

 

New Hampshire — 1.0%

 

 

 

 

 

 

 

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

 

 

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%,
9/15/12

 

 

2,000

 

 

2,019,500

 

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

 

 

2,500

 

 

2,606,375

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series A, 5.50%, 6/15/41

 

 

1,025

 

 

1,106,775

 

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

 

 

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
(000)

 

Value

 

New York — 7.3%

 

 

 

 

 

 

 

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

 

$

875

 

$

865,681

 

Hudson New York Yards Infrastructure Corp., RB,
Series A, 5.75%, 2/15/47

 

 

810

 

 

857,717

 

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

 

 

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%,
11/01/12

 

 

340

 

 

344,991

 

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

 

 

525

 

 

531,804

 

Series C, 6.80%, 6/01/28

 

 

415

 

 

428,023

 

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

 

 

3,300

 

 

3,521,760

 

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

 

 

615

 

 

638,167

 

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

 

 

 

 

 

 

 

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
Long Island Jewish Obligated Group, Series A,
5.00%, 5/01/41

 

 

630

 

 

623,290

 

 

 

 

 

 

 

12,277,647

 

North Carolina — 0.4%

 

 

 

 

 

 

 

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

 

 

705

 

 

716,985

 

Pennsylvania — 3.5%

 

 

 

 

 

 

 

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

 

 

1,095

 

 

898,415

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,830

 

 

2,029,122

 

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

 

 

2,750

 

 

2,338,572

 

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

 

 

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,
CAB, First Sub-Series C, 6.53%, 8/01/38 (a)

 

 

2,145

 

 

399,785

 

 

 

 

 

 

 

5,828,221

 

South Carolina — 1.5%

 

 

 

 

 

 

 

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

 

 

1,650

 

 

1,740,321

 

South Carolina State Public Service Authority,
Refunding RB, Santee Cooper Project, Series C,
5.00%, 12/01/36

 

 

770

 

 

827,396

 

 

 

 

 

 

 

2,567,717

 

Tennessee — 1.3%

 

 

 

 

 

 

 

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

 

 

2,200

 

 

2,158,728

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas — 12.5%

 

 

 

 

 

 

 

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

 

$

500

 

$

500,000

 

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

 

 

2,500

 

 

2,528,950

 

Central Texas Regional Mobility Authority, RB, Senior
Lien, 6.25%, 1/01/46

 

 

1,070

 

 

1,088,169

 

City of Dallas Texas, Refunding RB, Waterworks &
Sewer System, 5.00%, 10/01/35

 

 

760

 

 

824,813

 

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

 

 

535

 

 

568,015

 

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

 

 

1,380

 

 

1,548,360

 

Harris County Texas Metropolitan Transit Authority, RB,
Series A, 5.00%, 11/01/41

 

 

1,710

 

 

1,826,536

 

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

 

 

320

 

 

339,174

 

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

 

 

1,325

 

 

1,334,765

 

North Texas Tollway Authority, RB, CAB, Special
Projects System, Series B, 7.55%, 9/01/37 (a)

 

 

1,015

 

 

200,280

 

North Texas Tollway Authority, Refunding RB, Toll,
Second Tier, Series F, 6.13%, 1/01/31

 

 

3,020

 

 

3,163,450

 

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

 

 

500

 

 

500,000

 

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

 

 

 

 

 

 

 

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

 

 

2,165

 

 

2,327,570

 

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

 

 

1,500

 

 

1,600,545

 

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

 

 

625

 

 

592,150

 

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

 

 

1,990

 

 

1,984,189

 

 

 

 

 

 

 

20,926,966

 

US Virgin Islands — 1.5%

 

 

 

 

 

 

 

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

 

 

2,680

 

 

2,558,676

 

Utah — 0.9%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,418,830

 

Vermont — 0.6%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

930,340

 

Washington — 1.2%

 

 

 

 

 

 

 

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

 

 

930

 

 

888,159

 

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

 

 

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
(000)

 

Value

 

Wisconsin — 4.0%

 

 

 

 

 

 

 

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

 

$

3,620

 

$

4,050,309

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

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
Tender Option Bond Trusts (d)

 

 

 

 

 

 

 

California — 9.5%

 

 

 

 

 

 

 

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

 

 

1,640

 

 

1,776,428

 

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

 

 

1,335

 

 

1,442,454

 

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

 

 

1,170

 

 

1,227,657

 

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

 

 

553

 

 

602,897

 

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

 

 

4,770

 

 

4,980,882

 

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

 

 

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,
Catholic Health, Series A, 5.50%, 7/01/34

 

 

1,080

 

 

1,131,175

 

 

 

 

 

 

 

4,241,851

 

Connecticut — 3.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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,
Emory University, Series C, 5.00%, 9/01/38

 

 

1,649

 

 

1,733,070

 

Massachusetts — 1.9%

 

 

 

 

 

 

 

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

 

 

2,999

 

 

3,199,885

 

New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

1,019

 

 

1,127,426

 

New York — 4.4%

 

 

 

 

 

 

 

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

 

 

810

 

 

892,242

 

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

 

 

2,910

 

 

3,011,531

 

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

 

 

3,200

 

 

3,472,323

 

 

 

 

 

 

 

7,376,096

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par
(000)

 

Value

 

North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

$

800

 

$

845,800

 

Ohio — 4.3%

 

 

 

 

 

 

 

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

 

 

6,980

 

 

7,264,226

 

Tennessee — 1.6%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,593,475

 

Texas — 2.1%

 

 

 

 

 

 

 

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

 

 

3,360

 

 

3,505,018

 

Virginia — 2.7%

 

 

 

 

 

 

 

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

 

 

2,730

 

 

2,940,208

 

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

 

 

1,553

 

 

1,603,583

 

 

 

 

 

 

 

4,543,791

 

Washington — 0.9%

 

 

 

 

 

 

 

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

 

 

1,365

 

 

1,439,882

 

Wisconsin — 1.7%

 

 

 

 

 

 

 

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

 

 

2,859

 

 

2,892,485

 

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

 

 

 

 

 

61,568,484

 

Total Long-Term Investments
(Cost — $241,575,351) — 150.3%

 

 

 

 

 

251,657,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

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

 

 

3,626,155

 

 

3,626,155

 

 

 

 

 

 

 

 

 

 

 

Par
(000)

 

 

 

 

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

 

$

1,630

 

 

1,630,000

 

Total Short-Term Securities
(Cost — $5,256,155) — 3.2%

 

 

 

 

 

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
Interest Expense and Fees Payable — (19.9)%

 

 

 

 

 

(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.


32


SEMI-ANNUAL REPORT


OCTOBER 31, 2011




 

 

 

 

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
Appreciation

 

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
Held at
April 30,
2011

 

Net
Activity

 

Shares
Held at
October 31,
2011

 

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
Value

 

Unrealized
Appreciation

 

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
Investments1

 

 

 

$

251,657,158

 

 

 

$

251,657,158

 

Short-Term
Securities

 

$

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
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

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
(000)

 

Value

 

Alabama — 2.6%

 

 

 

 

 

 

 

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

 

$

2,330

 

$

2,553,284

 

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

 

 

2,170

 

 

2,056,487

 

 

 

 

 

 

 

4,609,771

 

California — 20.7%

 

 

 

 

 

 

 

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

 

 

5,500

 

 

5,956,555

 

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

 

 

2,895

 

 

3,128,019

 

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

 

 

1,730

 

 

1,886,357

 

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

 

 

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%,
4/01/40

 

 

1,605

 

 

1,736,401

 

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

 

 

1,665

 

 

1,622,842

 

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

 

 

2,100

 

 

2,196,285

 

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

 

 

1,500

 

 

1,640,670

 

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

 

 

1,575

 

 

1,682,478

 

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

 

 

1,825

 

 

1,925,521

 

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

 

 

1,335

 

 

1,472,585

 

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

 

 

1,250

 

 

1,432,338

 

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

 

 

 

 

 

 

 

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%,
8/01/32

 

 

470

 

 

471,852

 

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

 

 

1,850

 

 

2,022,919

 

 

 

 

 

 

 

36,334,412

 

Colorado — 1.5%

 

 

 

 

 

 

 

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

 

 

1,900

 

 

2,134,669

 

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

 

 

455

 

 

482,336

 

 

 

 

 

 

 

2,617,005

 

District of Columbia — 1.2%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,184,680

 

Florida — 9.8%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,693,475

 

County of Lee Florida, Airport Refunding RB, Series A,
AMT, 5.38%, 10/01/32

 

 

1,500

 

 

1,491,540

 

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

 

 

2,215

 

 

2,243,463

 

Orange County Health Facilities Authority, RB, The
Nemours Foundation Project, Series 2009A, 5.00%,
1/01/29

 

 

1,465

 

 

1,501,244

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

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

 

$

4,645

 

$

4,923,932

 

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

 

 

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),
5.50%, 12/01/26

 

 

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%,
1/01/35

 

 

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

 

 

5,225

 

 

6,010,944

 

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

 

 

1,310

 

 

1,439,900

 

City of Chicago Illinois, Transit Authority, RB:

 

 

 

 

 

 

 

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

 

 

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%,
6/15/28

 

 

2,500

 

 

2,676,325

 

 

 

 

 

 

 

32,108,800

 

Indiana — 8.6%

 

 

 

 

 

 

 

Indiana Finance Authority, Wastewater Utility, RB,
First Lien, CWA Authority Project, Series A, 5.25%,
10/01/31

 

 

2,720

 

 

2,940,429

 

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

 

 

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,
Refunding RB, Waterworks Project, Series A (AGC),
5.50%, 1/01/38

 

 

1,430

 

 

1,539,352

 

 

 

 

 

 

 

15,167,531

 

Iowa — 0.6%

 

 

 

 

 

 

 

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

 

 

1,080

 

 

1,133,892

 

Kentucky — 0.8%

 

 

 

 

 

 

 

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

 

 

320

 

 

338,298

 

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

 

 

1,000

 

 

1,065,620

 

 

 

 

 

 

 

1,403,918

 

Massachusetts — 3.3%

 

 

 

 

 

 

 

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

 

 

2,440

 

 

2,440,439

 

Massachusetts School Building Authority, RB, Sales Tax
Revenue, Senior, Series B, 5.00%, 10/15/41

 

 

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
(000)

 

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,
Facilities Program, Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

875

 

 

965,370

 

5.25%, 10/15/25

 

 

455

 

 

499,203

 

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

 

 

750

 

 

751,417

 

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

 

 

1,910

 

 

2,265,375

 

 

 

 

 

 

 

22,171,822

 

Minnesota — 0.8%

 

 

 

 

 

 

 

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

 

 

1,325

 

 

1,485,882

 

Nevada — 6.5%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,137,680

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

2,510

 

 

2,616,399

 

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

 

 

1,750

 

 

1,810,043

 

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

 

 

4,750

 

 

4,782,632

 

 

 

 

 

 

 

11,346,754

 

New Jersey — 7.4%

 

 

 

 

 

 

 

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

 

 

6,700

 

 

6,937,649

 

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

 

 

2,100

 

 

2,200,065

 

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

 

 

3,500

 

 

3,835,685

 

 

 

 

 

 

 

12,973,399

 

New York — 4.1%

 

 

 

 

 

 

 

Hudson New York Yards Infrastructure Corp., Senior RB,
Fiscal 2012, Series A, 5.75%, 2/15/47

 

 

565

 

 

598,284

 

New York City Municipal Water & Sewer Finance
Authority, RB, Series EE:

 

 

 

 

 

 

 

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,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

1,400

 

 

1,494,080

 

 

 

 

 

 

 

7,205,273

 

Pennsylvania — 2.3%

 

 

 

 

 

 

 

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

 

 

1,720

 

 

1,776,932

 

Philadelphia Hospitals and Higher Education Facilities
Authority, RB, The Children’s Hospital of Philadelphia
Project, Series D, 5.00%, 7/01/32

 

 

2,230

 

 

2,307,649

 

 

 

 

 

 

 

4,084,581

 

Puerto Rico — 1.3%

 

 

 

 

 

 

 

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

 

 

2,115

 

 

2,344,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas — 23.2%

 

 

 

 

 

 

 

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

 

$

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
Lien, Series A (AGC), 6.00%, 11/15/35

 

 

4,000

 

 

4,566,480

 

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

 

 

1,840

 

 

1,993,714

 

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

 

 

3,175

 

 

3,403,441

 

Harris County Cultural Education Facilities Finance Corp.,
RB, Texas Children’s Hospital Project, Series 2009,
5.25%, 10/01/29

 

 

1,200

 

 

1,274,112

 

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

 

 

600

 

 

673,200

 

Harris County Metropolitan Transit Authority, Transit
Authority Sales and Use Tax Bonds, Series 2011B,
5.00%, 11/01/36

 

 

760

 

 

815,009

 

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

 

 

775

 

 

839,581

 

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

 

 

3,150

 

 

3,423,987

 

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

 

 

 

 

 

 

 

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.,
5.00%, 8/15/41

 

 

2,000

 

 

2,026,900

 

Virginia — 1.0%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,714,365

 

Washington — 1.5%

 

 

 

 

 

 

 

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

 

 

1,375

 

 

1,507,825

 

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

 

 

1,075

 

 

1,183,210

 

 

 

 

 

 

 

2,691,035

 

West Virginia — 0.6%

 

 

 

 

 

 

 

West Virginia University Board of Governors, RB,
University Improvement (West Virginia University
Projects), Series B, 5.00%, 10/01/36

 

 

1,025

 

 

1,096,924

 

Total Municipal Bonds — 129.9%

 

 

 

 

 

228,347,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (b)

 

 

 

 

 

 

 

Alabama — 1.2%

 

 

 

 

 

 

 

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

 

 

2,120

 

 

2,182,455

 

California — 2.6%

 

 

 

 

 

 

 

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

 

 

1,258

 

 

1,282,688

 

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

 

 

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
Tender Option Bond Trusts (b)

 

Par
(000)

 

Value

 

Colorado — 3.2%

 

 

 

 

 

 

 

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

 

$

5,610

 

$

5,684,220

 

District of Columbia — 0.7%

 

 

 

 

 

 

 

District of Columbia Water & Sewer Authority, Public
Utility, RB, Series 2979, 6.00%, 10/01/35

 

 

1,040

 

 

1,226,413

 

Florida — 7.8%

 

 

 

 

 

 

 

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

 

 

4,302

 

 

4,406,180

 

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

 

 

7,500

 

 

8,314,200

 

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

 

 

960

 

 

1,011,034

 

 

 

 

 

 

 

13,731,414

 

Georgia — 2.4%

 

 

 

 

 

 

 

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

 

 

4,000

 

 

4,236,880

 

Illinois — 1.5%

 

 

 

 

 

 

 

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

 

 

2,509

 

 

2,618,104

 

Kentucky — 0.9%

 

 

 

 

 

 

 

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

 

 

1,406

 

 

1,520,976

 

Massachusetts — 4.9%

 

 

 

 

 

 

 

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

 

 

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,
RB, S/F Housing, Series CC, 5.25%, 10/01/29

 

 

2,401

 

 

2,497,682

 

Washington — 2.5%

 

 

 

 

 

 

 

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

 

 

4,002

 

 

4,381,918

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 34.7%

 

 

 

 

 

61,004,892

 

Total Long-Term Investments
(Cost — $276,626,540) — 164.6%

 

 

 

 

 

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
(Cost — $11,022,378) — 6.3%

 

 

 

 

 

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
Interest Expense and Fees Payable — (18.0)%

 

 

 

 

 

(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
Held at
April 30,
2011

 

Net
Activity

 

Shares
Held at
October 31,
2011

 

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
Investments1

 

 

 

$

289,352,296

 

 

 

$

289,352,296

 

Short-Term
Securities

 

$

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
(000)

 

Value

 

Alabama — 2.8%

 

 

 

 

 

 

 

Birmingham Special Care Facilities Financing Authority,
RB, Children’s Hospital (AGC), 6.00%, 6/01/34

 

$

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),
4.00%, 7/01/20

 

 

2,325

 

 

2,473,777

 

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

 

 

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
Power Co., San Juan, Series A, 4.95%, 10/01/20

 

 

2,325

 

 

2,352,481

 

Salt River Project Agricultural Improvement & Power
District, RB, Series A, 5.00%, 1/01/25

 

 

4,000

 

 

4,414,000

 

Scottsdale IDA, RB, Scottsdale Healthcare, Series C
(AGM), 5.00%, 9/01/35

 

 

3,650

 

 

3,599,739

 

State of Arizona, COP, Department of Administration,
Series A (AGM), 4.25%, 10/01/23

 

 

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,
Refunding RB, Sutter Health, Series B, 5.00%,
8/15/22

 

 

2,135

 

 

2,330,288

 

California HFA, RB, Home Mortgage, Series K, AMT,
4.55%, 8/01/21

 

 

1,000

 

 

943,540

 

California HFA, Refunding RB, Home Mortgage, Series M,
AMT, 4.55%, 8/01/21

 

 

5,490

 

 

5,100,814

 

California Pollution Control Financing Authority, RB, AMT:

 

 

 

 

 

 

 

Republic Services Inc. Project, Series B, Mandatory
Put Bonds, 5.25%, 6/01/23 (a)

 

 

605

 

 

651,549

 

Waste Management Inc. Project, Series A-2, 5.40%,
4/01/25

 

 

1,240

 

 

1,267,503

 

California Pollution Control Financing Authority,
Refunding RB, Pacific Gas, Series C, AMT (FGIC),
4.75%, 12/01/23

 

 

5,000

 

 

5,179,500

 

City of Sacramento California, Special Tax Bonds,
North Natomas Community Facilities, Series 4-C,
6.00%, 9/01/28

 

 

2,990

 

 

3,023,010

 

City of San Jose California, RB, Series A-1, AMT,
5.00%, 3/01/25

 

 

3,000

 

 

3,002,010

 

Golden State Tobacco Securitization Corp., Refunding
RB, Asset-Backed, Senior Series A-1, 5.00%, 6/01/15

 

 

5,000

 

 

5,236,650

 

Los Angeles Regional Airports Improvement Corp.,
Refunding RB, Facilities, LAXFUEL Corp., LA
International, AMT (AMBAC), 5.50%, 1/01/32

 

 

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,
Senior Lien, Community Facilities District 97-1,

 

 

 

 

 

 

 

Series A (AGM), 5.00%, 9/01/32

 

 

2,610

 

 

2,615,089

 

 

 

 

 

 

 

45,985,452

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Colorado — 1.1%

 

 

 

 

 

 

 

Plaza Metropolitan District No. 1, Tax Allocation Bonds,
Public Improvement Fee, Tax Increment, 7.50%,
12/01/15

 

$

6,000

 

$

6,051,840

 

Connecticut — 0.5%

 

 

 

 

 

 

 

Connecticut State Development Authority, RB,
Learjet Inc. Project, AMT, 7.95%, 4/01/26

 

 

1,160

 

 

1,214,381

 

Connecticut State Health & Educational Facility
Authority, RB, Lawrence & Memorial Hospital,
Series F, 5.00%, 7/01/31

 

 

1,780

 

 

1,807,163

 

 

 

 

 

 

 

3,021,544

 

Florida — 7.0%

 

 

 

 

 

 

 

Broward County School Board Florida, COP, Series A
(AGM), 5.00%, 7/01/24

 

 

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,
Refunding RB, Series C (BHAC), 5.00%, 10/01/23

 

 

8,000

 

 

8,808,720

 

Greater Orlando Aviation Authority Airport Facilities,
Refunding RB, Series B, AMT:

 

 

 

 

 

 

 

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
RB, Adventist Health, Series G, 5.13%, 11/15/16 (b)

 

 

35

 

 

41,393

 

Midtown Miami Community Development District,
Special Assessment Bonds:

 

 

 

 

 

 

 

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,
Special Assessment Bonds, 5.13%, 11/01/13

 

 

1,510

 

 

1,378,026

 

Portofino Shores Community Development District,
Special Assessment Bonds, Series A, 6.40%,
5/01/34

 

 

1,085

 

 

1,071,003

 

South Lake County Hospital District, RB, South Lake
Hospital Inc., 6.63%, 10/01/23

 

 

2,390

 

 

2,454,530

 

Sterling Hill Community Development District, Special
Assessment Bonds, Refunding, Series B, 5.50%,
11/01/10 (c)(d)

 

 

160

 

 

112,050

 

University of Florida Research Foundation Inc., RB
(AMBAC), 5.13%, 9/01/33

 

 

4,000

 

 

3,663,120

 

 

 

 

 

 

 

40,373,403

 

Georgia — 1.2%

 

 

 

 

 

 

 

Fulton County Development Authority, Refunding RB,
Robert Woodruff, Series B, 5.25%, 3/15/24

 

 

3,000

 

 

3,137,370

 

Medical Center Hospital Authority, Refunding RB,
Columbus Regional Healthcare (AGM):

 

 

 

 

 

 

 

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%,
12/01/24

 

 

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
(000)

 

Value

 

Idaho — 0.6%

 

 

 

 

 

 

 

Idaho Health Facilities Authority, RB, St. Luke’s Regional
Medical Center (AGM), 4.63%, 7/01/30

 

$

3,700

 

$

3,734,780

 

Illinois — 8.2%

 

 

 

 

 

 

 

City of Chicago Illinois, ARB, General, Third Lien,
Series B-2, AMT (AGM), 5.75%, 1/01/23

 

 

8,130

 

 

8,518,451

 

City of Chicago Illinois, Transit Authority, RB, 5.25%,
12/01/31 (e)

 

 

2,000

 

 

2,084,180

 

Du Page & Will Counties Community School District
No. 204 Indian Prairie, GO, School Building, Series A
(NPFGC), 5.25%, 12/30/22

 

 

8,650

 

 

9,524,256

 

Du Page County Forest Preservation District, GO,
Refunding, Series A, 3.50%, 11/01/24

 

 

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,
5.90%, 11/01/17

 

 

6,000

 

 

6,003,180

 

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

 

 

1,525

 

 

1,422,307

 

 

 

 

 

 

 

47,681,391

 

Indiana — 3.2%

 

 

 

 

 

 

 

City of Whiting Indiana, RB, BP Products North America,
5.25%, 1/01/21

 

 

4,800

 

 

5,485,968

 

County of Jasper Indiana, Refunding RB, Northern
Indiana Public Service Co., Series C (NPFGC), 5.85%,
4/01/19

 

 

2,000

 

 

2,271,200

 

Indiana Finance Authority, Wastewater Utility, RB, 5.25%,
10/01/31

 

 

10,000

 

 

10,810,400

 

 

 

 

 

 

 

18,567,568

 

Iowa — 1.0%

 

 

 

 

 

 

 

Iowa Higher Education Loan Authority, RB, Private
College Facility, Buena Vista University:

 

 

 

 

 

 

 

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,
Private College Facility:

 

 

 

 

 

 

 

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
System, Series H, RB:

 

 

 

 

 

 

 

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,
Refunding RB, Owensboro Medical Health System,
Series A, 5.25%, 6/01/23

 

 

8,650

 

 

8,844,452

 

Kentucky State Property & Buildings Commission,
Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/24

 

 

8,000

 

 

8,827,200

 

 

 

 

 

 

 

17,671,652

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Louisiana — 3.5%

 

 

 

 

 

 

 

Jefferson Parish Hospital Service District No. 1,
Refunding RB, West Jefferson Medical Center,
Series A (AGM), 5.50%, 1/01/26

 

$

3,000

 

$

3,064,740

 

Louisiana Public Facilities Authority, RB:

 

 

 

 

 

 

 

Nineteenth Judicial District Court (FGIC), 5.50%,
6/01/41

 

 

2,000

 

 

2,088,660

 

University of New Orleans Research & Technology
(NPFGC), 5.25%, 3/01/26

 

 

5,000

 

 

5,231,650

 

Louisiana Public Facilities Authority, Refunding RB,
Entergy Gulf States Louisiana, LLC Project, Series A,
5.00%, 9/01/28

 

 

5,000

 

 

5,115,100

 

New Orleans Aviation Board, Refunding GARB,
Restructuring, Series A-2 (AGC), 6.00%, 1/01/23

 

 

850

 

 

979,548

 

Port of New Orleans Louisiana, Refunding RB,
Continental Grain Co. Project, 6.50%, 1/01/17

 

 

3,500

 

 

3,501,050

 

 

 

 

 

 

 

19,980,748

 

Maine — 0.3%

 

 

 

 

 

 

 

Portland Housing Development Corp., Refunding RB,
Senior Living, Avesta Housing Development Corp.
Project, Series A, 6.00%, 2/01/34

 

 

1,965

 

 

1,929,296

 

Maryland — 0.5%

 

 

 

 

 

 

 

Maryland EDC, RB, Transportation Facilities Project,
Series A, 5.13%, 6/01/20

 

 

1,750

 

 

1,762,723

 

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

 

 

790

 

 

793,128

 

Maryland Industrial Development Financing Authority,
RB, Our Lady of Good Counsel School, Series A,
6.00%, 5/01/35

 

 

500

 

 

502,030

 

 

 

 

 

 

 

3,057,881

 

Massachusetts — 0.7%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB,
Ogden Haverhill Project, Series B, AMT:

 

 

 

 

 

 

 

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,
RB, Winchester Hospital, 5.00%, 7/01/25

 

 

1,060

 

 

1,031,794

 

 

 

 

 

 

 

4,244,406

 

Michigan — 4.0%

 

 

 

 

 

 

 

City of Detroit Michigan, Water Supply System,
Refunding RB, Second Lien, Series C (BHAC), 5.75%,
7/01/26

 

 

4,235

 

 

4,564,483

 

Kalamazoo Hospital Finance Authority, Refunding RB,
Bronson Methodist Hospital, 4.25%, 5/15/25

 

 

2,120

 

 

1,977,175

 

Manistee Area Public Schools, GO, Refunding (Q-SBLF),
5.00%, 5/01/25

 

 

1,000

 

 

1,059,730

 

Michigan State Building Authority, Refunding RB,
Facilities Program, Series A, 5.00%, 10/15/24

 

 

2,500

 

 

2,730,000

 

Michigan State Hospital Finance Authority, Refunding
RB, Hospital, Henry Ford Health, 5.25%, 11/15/24

 

 

4,900

 

 

5,097,225

 

Wayne County Airport Authority, RB, Detroit Metropolitan
Wayne County Airport, AMT (AGC), 4.75%, 12/01/18

 

 

7,665

 

 

7,945,156

 

 

 

 

 

 

 

23,373,769

 

Minnesota — 1.2%

 

 

 

 

 

 

 

City of St. Cloud Minnesota, RB, Centracare Health
System, Series A, 4.25%, 5/01/21

 

 

2,300

 

 

2,401,775

 

Minnesota State Municipal Power Agency, RB, Series A,
5.25%, 10/01/24

 

 

2,000

 

 

2,095,640

 

University of Minnesota, RB, Biomed Science Research
Facilities Funding Program, Series B, 5.00%, 8/01/36

 

 

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
(000)

 

 

Value

 

Mississippi — 1.6%

 

 

 

 

 

 

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project:

 

 

 

 

 

 

 

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,
RB, SSM Health Care, Series B, 4.25%, 6/01/25

 

 

8,125

 

 

8,182,931

 

Montana — 0.5%

 

 

 

 

 

 

 

Montana Facility Finance Authority, Refunding RB,
Series B, 5.00%, 1/01/24

 

 

2,625

 

 

2,813,764

 

Nebraska — 1.3%

 

 

 

 

 

 

 

Douglas County School District No. 17 Nebraska,
GO, Refunding:

 

 

 

 

 

 

 

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,
Immanuel Obligation Group, 5.50%, 1/01/30

 

 

1,000

 

 

1,024,360

 

 

 

 

 

 

 

7,742,106

 

Nevada — 1.1%

 

 

 

 

 

 

 

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

 

 

2,080

 

 

2,129,670

 

County of Humboldt Nevada, Refunding RB, Idaho
Power Co. Project, 5.15%, 12/01/24

 

 

3,800

 

 

4,058,666

 

 

 

 

 

 

 

6,188,336

 

New Jersey — 14.9%

 

 

 

 

 

 

 

Essex County Improvement Authority, RB, Newark
Project, Series A (AGM), 5.00%, 11/01/20

 

 

2,000

 

 

2,107,080

 

Garden State Preservation Trust, RB, Election of 2005,
Series A (AGM):

 

 

 

 

 

 

 

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%,
9/15/12

 

 

5,540

 

 

5,594,015

 

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

 

 

17,900

 

 

18,534,913

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

New Jersey American Water Co., Series E, AMT,
4.70%, 12/01/25

 

 

3,000

 

 

3,082,080

 

School Facilities Construction, Series AA, 4.25%,
12/15/24

 

 

3,850

 

 

3,883,071

 

School Facilities Construction, Series EE, 5.00%,
9/01/23

 

 

3,465

 

 

3,782,429

 

New Jersey Health Care Facilities Financing Authority,
Refunding RB, Hackensack University Medical,
Series B (AGM), 4.00%, 1/01/24

 

 

635

 

 

638,937

 

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

 

 

 

 

 

 

 

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
Authority, Refunding RB, Series 1A, 4.75%, 12/01/21

 

 

2,400

 

 

2,533,056

 

New Jersey State Housing & Mortgage Finance Agency,
RB, S/F Housing, Series X, AMT, 5.10%, 10/01/23

 

 

4,500

 

 

4,596,525

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System:

 

 

 

 

 

 

 

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
(000)

 

Value

 

New Jersey (concluded)

 

 

 

 

 

 

 

South Jersey Port Corp., RB, Marine Terminal, Series O-1
(AGC), 4.63%, 1/01/23

 

$

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
RB, International Paper, Series A, AMT, 5.20%,
12/01/23

 

 

6,300

 

 

6,304,977

 

Hudson New York Yards Infrastructure Corp., RB,
Series A, 5.75%, 2/15/47

 

 

2,250

 

 

2,382,547

 

Long Island Power Authority, Refunding RB, Series A,
5.50%, 4/01/24

 

 

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,
Series B, 5.25%, 11/15/25

 

 

4,000

 

 

4,451,200

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

3,500

 

 

3,545,360

 

Special Needs Facilities Pooled Program, Series C-1,
6.80%, 7/01/19

 

 

1,770

 

 

1,773,682

 

New York City Industrial Development Agency,
Refunding RB, New York Stock Exchange Project,
Series A, 4.25%, 5/01/24

 

 

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
Hall, Series A, 5.00%, 12/01/29

 

 

3,750

 

 

3,948,450

 

New York Liberty Development Corp., Refunding RB,
Second Priority, Bank of America Tower at One Bryant
Park Project, 5.63%, 7/15/47

 

 

3,000

 

 

3,016,350

 

New York State Dormitory Authority, LRB, Municipal
Health Facilities, Sub-Series 2-4, 5.00%, 1/15/27

 

 

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,
Series A (AGM), 5.00%, 2/15/22

 

 

4,000

 

 

4,435,800

 

Mount Sinai School of Medicine, Series A (NPFGC),
5.15%, 7/01/24

 

 

1,000

 

 

1,059,400

 

North Shore-Long Island Jewish Health System,
Series A, 5.50%, 5/01/30

 

 

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,
Series E, 5.00%, 5/01/22

 

 

650

 

 

700,492

 

North Shore-Long Island Jewish Health System,
Series E, 5.00%, 5/01/23

 

 

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,
Service Contract, Series B, 5.00%, 1/01/21

 

 

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
(000)

 

 

Value

 

New York (concluded)

 

 

 

 

 

 

 

Port Authority of New York & New Jersey, RB, JFK
International Air Terminal, 5.00%, 12/01/20

 

$

2,475

 

$

2,527,445

 

Port Authority of New York & New Jersey,
Refunding RB, Consolidated:

 

 

 

 

 

 

 

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),
5.00%, 10/15/20

 

 

7,070

 

 

7,823,662

 

Tobacco Settlement Financing Corp. New York, RB,
Asset-Backed, Series B-1C, 5.50%, 6/01/22

 

 

5,000

 

 

5,332,050

 

United Nations Development Corp., Refunding RB,
Series A, 4.25%, 7/01/24

 

 

2,985

 

 

3,104,728

 

 

 

 

 

 

 

126,832,860

 

North Carolina — 1.5%

 

 

 

 

 

 

 

City of Charlotte North Carolina, RB, Charlotte Douglas
Airport, Series A, 5.00%, 7/01/33 (e)

 

 

4,000

 

 

4,203,160

 

Gaston County Industrial Facilities & Pollution Control
Financing Authority, RB, Exempt Facilities, National
Gypsum Co. Project, AMT, 5.75%, 8/01/35

 

 

3,105

 

 

2,411,467

 

North Carolina Eastern Municipal Power Agency,
Refunding RB, Series B, 5.00%, 1/01/26

 

 

1,925

 

 

2,043,811

 

 

 

 

 

 

 

8,658,438

 

Northern Mariana Islands — 0.0%

 

 

 

 

 

 

 

Commonwealth of the Northern Mariana Islands, GO,
Series A, 6.75%, 10/01/33

 

 

150

 

 

139,599

 

Ohio — 0.5%

 

 

 

 

 

 

 

Cincinnati City School District, GO, Refunding, School
Improvement, 5.25%, 6/01/24

 

 

1,825

 

 

2,072,288

 

City of Cincinnati Ohio, Various Purpose, GO, Series A,
4.38%, 12/01/30

 

 

900

 

 

902,097

 

 

 

 

 

 

 

2,974,385

 

Oregon — 1.1%

 

 

 

 

 

 

 

Oregon State Facilities Authority, RB:

 

 

 

 

 

 

 

Lewis & Clark College Project, Series A, 5.00%,
10/01/27

 

 

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
(AGM), 5.00%, 6/15/20

 

 

2,895

 

 

3,058,741

 

City of Philadelphia Pennsylvania, Refunding RB,
Series B, AMT (AGM), 5.00%, 6/15/19

 

 

3,905

 

 

4,172,258

 

City of Pittsburgh Pennsylvania, GO, Refunding RB,
Series B (AGM), 5.25%, 9/01/17

 

 

9,630

 

 

10,713,664

 

City of Pittsburgh Pennsylvania, GO, Series C (AGM),
5.25%, 9/01/18

 

 

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,
Whitemarsh Continuing Care, 6.00%, 2/01/21

 

 

3,500

 

 

3,221,645

 

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

 

 

7,710

 

 

6,556,507

 

Pennsylvania Turnpike Commission, RB, Sub-Series B,
5.25%, 12/01/31

 

 

4,000

 

 

4,194,560

 

South Fork Municipal Authority, Refunding RB,
Conemaugh Valley Memorial, Series A (AGC), 6.00%,
7/01/26

 

 

6,225

 

 

6,912,116

 

 

 

 

 

 

 

53,986,128

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

Puerto Rico — 5.6%

 

 

 

 

 

 

 

Puerto Rico Aqueduct & Sewer Authority, RB, Senior
Lien, Series A (AGC), 5.00%, 7/01/25

 

$

3,215

 

$

3,334,630

 

Puerto Rico Electric Power Authority, RB, Series TT,
5.00%, 7/01/27

 

 

6,500

 

 

6,566,625

 

Puerto Rico Highway & Transportation Authority, RB
(AGM), Series Y, 6.25%, 7/01/21

 

 

3,000

 

 

3,441,750

 

Puerto Rico Highway & Transportation Authority,
Refunding RB (AGM), Series AA-1, 4.95%,
7/01/26 (b)

 

 

1,500

 

 

1,536,767

 

Puerto Rico Housing Finance Authority, Refunding RB,
Subordinate, Capital Fund Modernization, 5.13%,
12/01/27

 

 

11,450

 

 

11,865,406

 

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

 

 

5,390

 

 

3,773,054

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 5.63%, 8/01/30

 

 

1,925

 

 

2,017,708

 

 

 

 

 

 

 

32,535,940

 

Rhode Island — 0.5%

 

 

 

 

 

 

 

Rhode Island Health & Educational Building Corp., RB,
University of Rhode Island, Series A (AGC), 4.75%,
9/15/24

 

 

2,500

 

 

2,676,175

 

South Carolina — 0.2%

 

 

 

 

 

 

 

County of Florence South Carolina, RB, McLeod
Regional Medical Center, Series A, 4.50%, 11/01/25

 

 

1,000

 

 

1,007,960

 

Tennessee — 2.8%

 

 

 

 

 

 

 

Chattanooga-Hamilton County Hospital Authority,
Refunding RB, Erlanger Health (AGM), 5.00%,
10/01/22

 

 

1,620

 

 

1,749,487

 

Johnson City Health & Educational Facilities Board,
RB, Appalachian Christian Village Project, Series A,
6.00%, 2/15/19

 

 

1,515

 

 

1,506,910

 

Knox County Health Educational & Housing Facilities
Board Tennessee, Refunding RB, Eastowne Village
Project, 4.00%, 6/01/31 (a)

 

 

3,925

 

 

4,028,267

 

Memphis-Shelby County Sports Authority Inc.,
Refunding RB, Memphis Arena Project:

 

 

 

 

 

 

 

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
Board Tennessee, RB, Germantown Village, Series A:

 

 

 

 

 

 

 

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,
Series A, AMT, 5.00%, 7/01/25

 

 

1,500

 

 

1,531,035

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., RB, Series 2001-A-1, AMT,
6.15%, 1/01/16

 

 

4,000

 

 

4,000,320

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., Refunding RB, Series A,
Sub-Series 2, Mandatory Put Bonds, AMT, 9.00%,
5/01/29 (a)

 

 

3,000

 

 

1,680,000

 

Frisco ISD, GO, Refunding (PSF-GTD), 4.25%,
8/15/28 (e)

 

 

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,
Mandatory Put Bonds, AMT, 7.50%, 5/01/25 (a)

 

 

2,440

 

 

2,459,764

 

Gulf Coast Waste Disposal Authority, Refunding RB,
Series A, AMT, 6.10%, 8/01/24

 

 

650

 

 

668,122

 

San Jacinto River Authority, RB, Special Project, 5.25%,
10/01/25

 

 

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
(000)

 

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
Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21

 

 

1,860

 

 

1,775,798

 

Virgin Islands Public Finance Authority, RB, Senior
Secured, Hovensa Refinery, AMT, 6.13%, 7/01/22

 

 

6,750

 

 

6,189,412

 

 

 

 

 

 

 

7,965,210

 

Virginia — 2.9%

 

 

 

 

 

 

 

James City County EDA, Refunding RB, First Mortgage,
Williamsburg Lodge, Series A:

 

 

 

 

 

 

 

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,
Series B (AGM), 5.00%, 7/01/38

 

 

3,205

 

 

3,272,593

 

Tobacco Settlement Financing Corp. Virginia, RB,
Asset-Backed, 5.63%, 6/01/37 (b)

 

 

7,800

 

 

9,048,702

 

 

 

 

 

 

 

16,743,896

 

West Virginia — 2.8%

 

 

 

 

 

 

 

West Virginia Hospital Finance Authority, Refunding RB,
Charleston, Series A, 5.13%, 9/01/23

 

 

4,000

 

 

4,144,560

 

West Virginia University, Board of Governors University
Improvement, RB, Series B:

 

 

 

 

 

 

 

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%,
9/01/26

 

 

2,000

 

 

2,009,600

 

Total Municipal Bonds — 132.0%

 

 

 

 

 

763,813,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

 

 

 

 

 

 

California — 4.9%

 

 

 

 

 

 

 

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

 

 

3,101

 

 

3,160,911

 

Peralta Community College District, GO, Election of
2000, Series D (AGM), 5.00%, 8/01/30

 

 

10,140

 

 

10,393,297

 

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

 

 

9,028

 

 

9,540,108

 

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

 

 

4,875

 

 

5,079,945

 

 

 

 

 

 

 

28,174,261

 

Illinois — 2.3%

 

 

 

 

 

 

 

McHenry County Conservation District, GO (AGM),
5.13%, 2/01/27

 

 

12,695

 

 

13,482,453

 

Massachusetts — 1.5%

 

 

 

 

 

 

 

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

 

 

8,338

 

 

8,895,680

 

Minnesota — 1.9%

 

 

 

 

 

 

 

State of Minnesota, GO, State Various Purpose, Series A,
4.00%, 8/01/29

 

 

10,525

 

 

11,007,114

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

Par
(000)

 

Value

 

New Jersey — 2.1%

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series D (AGM), 5.00%,
6/15/19

 

$

11,120

 

$

12,057,416

 

New York — 6.9%

 

 

 

 

 

 

 

City of New York, New York, GO, Sub-Series B-1, 5.25%,
9/01/22

 

 

8,250

 

 

9,427,193

 

New York City Municipal Water & Sewer Finance
Authority, Refunding RB, Series A, 4.75%, 6/15/30

 

 

8,000

 

 

8,331,760

 

New York State Urban Development Corp., RB, State
Personal Income Tax, State Facilities, Series A-1
(NPFGC), 5.25%, 3/15/34

 

 

10,000

 

 

10,337,000

 

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

 

 

11,101

 

 

12,044,621

 

 

 

 

 

 

 

40,140,574

 

Washington — 2.0%

 

 

 

 

 

 

 

Snohomish County School District No. 15-Edmonds
Washington, GO (NPFGC), 5.00%, 12/01/19

 

 

10,000

 

 

11,354,400

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 21.6%

 

 

 

 

 

125,111,898

 

Total Long-Term Investments
(Cost — $859,249,157) — 153.6%

 

 

 

 

 

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
(Cost — $44,991,356) — 7.8%

 

 

 

 

 

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
Interest Expense and Fees Payable — (11.5)%

 

 

 

 

 

(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
Appreciation

 

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
Held at
April 30,
2011

 

Net
Activity

 

Shares
Held at
October 31,
2011

 

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
Investments1

 

 

 

$

888,925,271

 

 

 

$

888,925,271

 

Short-Term
Securities

 

$

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
(000)

 

Value

 

Alabama — 0.9%

 

 

 

 

 

 

 

Prattville IDB Alabama, RB, International Paper Co.
Project, Series A, AMT, 4.75%, 12/01/30

 

$

3,025

 

$

2,718,205

 

Alaska — 1.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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
Project, Series A, 6.75%, 7/01/29

 

 

1,000

 

 

671,130

 

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

 

 

1,900

 

 

1,819,193

 

Pima County IDA, Refunding RB, Charter Schools II,
Series A, 6.75%, 7/01/21

 

 

465

 

 

465,083

 

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

 

 

2,445

 

 

2,563,705

 

 

 

 

 

 

 

5,519,111

 

Arkansas — 0.5%

 

 

 

 

 

 

 

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

 

 

1,660

 

 

1,646,670

 

California — 12.4%

 

 

 

 

 

 

 

California Health Facilities Financing Authority,
Refunding RB:

 

 

 

 

 

 

 

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
Projects, Sub-Series I-1, 6.38%, 11/01/34

 

 

1,185

 

 

1,302,422

 

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

 

 

800

 

 

853,784

 

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

 

 

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
Initiatives, Series D, 6.25%, 10/01/33

 

 

1,060

 

 

1,168,501

 

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

 

 

80

 

 

81,826

 

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

 

 

 

 

 

 

 

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
Authority, RB:

 

 

 

 

 

 

 

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
Improvement, Priority Distribution, 6.25%, 1/01/31

 

 

2,000

 

 

1,590,360

 

 

 

 

 

 

 

6,623,297

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Delaware — 1.6%

 

 

 

 

 

 

 

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

 

$

1,125

 

$

1,131,581

 

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

 

 

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%,
10/01/33 (a)

 

 

6,590

 

 

1,796,104

 

CAB, Second Senior Lien, Series B (AGC), 6.24%,
10/01/34 (a)

 

 

4,830

 

 

1,235,128

 

CAB, Second Senior Lien, Series B (AGC), 6.26%,
10/01/35 (a)

 

 

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
System, 5.00%, 10/01/34

 

 

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%,
10/01/40

 

 

4,940

 

 

4,735,830

 

Fiddlers Creek Community Development District No. 2,
Special Assessment Bonds (b)(c):

 

 

 

 

 

 

 

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,
5.25%, 7/01/37

 

 

1,050

 

 

1,001,563

 

National Gypsum Co., Series B, AMT, 7.13%,
4/01/30

 

 

2,720

 

 

2,424,064

 

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

 

 

2,265

 

 

2,370,730

 

Midtown Miami Community Development District,
Special Assessment Bonds, Series A, 6.25%,
5/01/37

 

 

915

 

 

902,382

 

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

 

 

1,200

 

 

733,488

 

Preserve at Wilderness Lake Community Development
District, RB, Series A, 7.10%, 5/01/33

 

 

855

 

 

858,420

 

 

 

 

 

 

 

21,149,073

 

Georgia — 4.8%

 

 

 

 

 

 

 

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

 

 

845

 

 

868,398

 

Fulton County Residential Care Facilities for the Elderly
Authority, Refunding RB, Canterbury Court Project,
Series A, 6.13%, 2/15/26

 

 

2,000

 

 

1,881,400

 

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

 

 

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,
Series X, 6.50%, 1/01/20

 

 

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
(000)

 

Value

 

Hawaii — 0.5%

 

 

 

 

 

 

 

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

 

$

1,355

 

$

1,424,200

 

Illinois — 15.9%

 

 

 

 

 

 

 

City of Chicago Illinois, Board of Education, GO,
Series A (e):

 

 

 

 

 

 

 

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

 

 

5,865

 

 

6,747,213

 

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

 

 

800

 

 

819,312

 

City of Chicago Illinois, Tax Allocation Bonds, Kingsbury
Redevelopment Project, Series A, 6.57%, 2/15/13

 

 

700

 

 

700,098

 

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

 

 

1,050

 

 

1,081,447

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Advocate Health Care Network, Series D, 6.50%,
11/01/38

 

 

5,000

 

 

5,522,200

 

Community Rehabilitation Providers Facilities,
Series A, 6.50%, 7/01/22 (f)

 

 

530

 

 

557,268

 

Community Rehabilitation Providers Facilities,
Series A, 6.50%, 7/01/22

 

 

470

 

 

426,549

 

Navistar International, Recovery Zone, 6.50%,
10/15/40

 

 

1,540

 

 

1,588,710

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,610

 

 

1,666,833

 

Friendship Village of Schaumburg, Series A, 5.63%,
2/15/37

 

 

250

 

 

203,558

 

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

 

 

 

 

 

 

 

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%,
6/15/34

 

 

630

 

 

659,345

 

Village of Hodgkins Illinois, RB, MBM Project, AMT,
6.00%, 11/01/23

 

 

2,800

 

 

2,801,372

 

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

 

 

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,
Series A, 5.25%, 10/01/38

 

 

1,580

 

 

1,685,623

 

Indiana Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit, Series B-5,
5.00%, 11/15/36

 

 

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
Authority, RB, Clarian Health Obligation, Series A,
5.25%, 2/15/40

 

 

375

 

 

375,968

 

 

 

 

 

 

 

7,891,598

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Kansas — 0.6%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB,
Sisters of Leavenworth, Series A, 5.00%, 1/01/40

 

$

1,660

 

$

1,677,629

 

Kentucky — 0.4%

 

 

 

 

 

 

 

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

 

 

1,010

 

 

1,055,016

 

Louisiana — 4.8%

 

 

 

 

 

 

 

Louisiana Local Government Environmental Facilities &
Community Development Authority, RB, Westlake
Chemical Corp., Series A-1, 6.50%, 11/01/35

 

 

3,320

 

 

3,460,635

 

Port of New Orleans Louisiana, Refunding RB,
Continental Grain Co. Project, 6.50%, 1/01/17

 

 

7,500

 

 

7,502,250

 

Sabine River Authority Louisiana, Refunding RB,
International Paper Co. Project, 6.20%, 2/01/25

 

 

3,600

 

 

3,639,276

 

 

 

 

 

 

 

14,602,161

 

Maryland — 1.7%

 

 

 

 

 

 

 

County of Montgomery Maryland, GO, West Germantown
Development District, Senior Series A (Radian),
6.70%, 7/01/27

 

 

1,155

 

 

1,182,524

 

Maryland Community Development Administration,
Refunding RB, Residential, Series D, AMT, 4.90%,
9/01/42

 

 

1,500

 

 

1,449,000

 

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

 

 

435

 

 

430,380

 

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

 

 

830

 

 

833,287

 

Maryland Health & Higher Educational Facilities
Authority, RB, University of Maryland Medical System,
Series B (NPFGC), 7.00%, 7/01/22

 

 

1,000

 

 

1,179,690

 

 

 

 

 

 

 

5,074,881

 

Massachusetts — 5.4%

 

 

 

 

 

 

 

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

 

 

1,805

 

 

1,841,732

 

Massachusetts HFA, HRB, Series A, AMT, 5.20%,
12/01/37

 

 

3,000

 

 

3,014,280

 

Massachusetts HFA, RB, S/F, Series 130, AMT, 5.00%,
12/01/32

 

 

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
Revenue, Senior, Series B, 5.00%, 10/15/41

 

 

4,535

 

 

4,842,836

 

 

 

 

 

 

 

16,347,456

 

Michigan — 7.3%

 

 

 

 

 

 

 

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

 

 

910

 

 

1,078,796

 

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

 

 

2,465

 

 

2,465,148

 

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

 

 

1,380

 

 

1,388,363

 

Michigan State Hospital Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Henry Ford Health System, Series A, 5.25%,
11/15/46

 

 

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,
Refunding RB, William Beaumont Hospital, 8.25%,
9/01/39

 

 

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
(000)

 

Value

 

Mississippi — 1.4%

 

 

 

 

 

 

 

County of Lowndes Mississippi, Refunding RB,
Weyerhauser Co. Project, Series A, 6.80%, 4/01/22

 

$

3,000

 

$

3,190,410

 

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

 

 

1,065

 

 

1,146,259

 

 

 

 

 

 

 

4,336,669

 

Nevada — 0.2%

 

 

 

 

 

 

 

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

 

 

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%,
9/15/29

 

 

3,000

 

 

2,836,410

 

New Jersey Health Care Facilities Financing Authority,
RB, Pascack Valley Hospital Association, 6.63%,
7/01/36 (b)(c)

 

 

1,680

 

 

17

 

New Jersey State Housing & Mortgage Finance Agency,
RB, Series AA, 6.38%, 10/01/28

 

 

1,200

 

 

1,331,976

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series A, 5.50%, 6/15/41

 

 

1,635

 

 

1,765,440

 

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

 

 

1,860

 

 

1,688,731

 

 

 

 

 

 

 

10,003,540

 

New York — 10.1%

 

 

 

 

 

 

 

Hudson New York Yards Infrastructure Corp., Senior RB,
Series A, 5.75%, 2/15/47

 

 

1,605

 

 

1,699,551

 

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

 

 

9,405

 

 

11,010,904

 

Metropolitan Transportation Authority, Refunding RB,
Transportation, Series D, 5.25%, 11/15/40

 

 

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,
Series C-1, 6.50%, 7/01/17

 

 

890

 

 

879,186

 

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

 

 

6,700

 

 

7,150,240

 

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

 

 

1,220

 

 

1,265,957

 

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

 

 

 

 

 

 

 

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
Island Jewish, Series A, 5.00%, 5/01/41

 

 

1,255

 

 

1,241,634

 

Westchester County Industrial Development Agency
New York, RB, Special Needs Facilities Pooled
Program, Series E-1, 6.50%, 7/01/17

 

 

1,000

 

 

987,850

 

 

 

 

 

 

 

30,651,188

 

North Carolina — 1.5%

 

 

 

 

 

 

 

Gaston County Industrial Facilities & Pollution Control
Financing Authority North Carolina, RB, Exempt
Facilities National Gypsum Co. Project, AMT, 5.75%,
8/01/35

 

 

1,675

 

 

1,300,872

 

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

 

 

1,400

 

 

1,423,800

 

North Carolina Medical Care Commission, Refunding
RB, Carolina Village Project, 6.00%, 4/01/38

 

 

2,000

 

 

1,804,780

 

 

 

 

 

 

 

4,529,452

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Pennsylvania — 3.9%

 

 

 

 

 

 

 

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

 

$

4,250

 

$

3,486,998

 

Bucks County IDA, RB, Ann’s Choice Inc. Facility,
Series A, 6.13%, 1/01/25

 

 

880

 

 

848,742

 

Lancaster County Hospital Authority, RB, Brethren
Village Project, Series A, 6.50%, 7/01/40

 

 

2,000

 

 

2,000,700

 

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

 

 

470

 

 

410,211

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

Aqua Pennsylvania Inc. Project, 5.00%, 11/15/40

 

 

1,890

 

 

1,985,634

 

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

 

 

2,000

 

 

1,678,320

 

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

 

 

1,265

 

 

1,266,063

 

 

 

 

 

 

 

11,676,668

 

Puerto Rico — 1.6%

 

 

 

 

 

 

 

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

 

 

4,255

 

 

4,791,428

 

South Carolina — 1.7%

 

 

 

 

 

 

 

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

 

 

3,280

 

 

3,459,547

 

South Carolina State Public Service Authority,
Refunding RB, Santee Cooper Project, Series C,
5.00%, 12/01/36

 

 

1,540

 

 

1,654,792

 

 

 

 

 

 

 

5,114,339

 

Tennessee — 0.3%

 

 

 

 

 

 

 

Johnson City Health & Educational Facilities Board,
RB, Appalachian Christian Village Project, Series A,
6.00%, 2/15/24

 

 

1,000

 

 

951,520

 

Texas — 11.6%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

389,955

 

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

 

 

3,000

 

 

3,034,740

 

Central Texas Regional Mobility Authority, RB, Senior Lien,
6.25%, 1/01/46

 

 

2,140

 

 

2,176,337

 

City of Dallas Texas, Refunding RB, Waterworks & Sewer
System, 5.00%, 10/01/35

 

 

1,510

 

 

1,638,773

 

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

 

 

4,820

 

 

4,732,469

 

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

 

 

2,000

 

 

2,244,000

 

Harris County Texas Metropolitan Transit Authority, RB,
Sales & Use Tax, Series A, 5.00%, 11/01/41

 

 

3,400

 

 

3,631,710

 

North Texas Tollway Authority, Refunding RB, First Tier,
Series A, 6.25%, 1/01/39

 

 

7,000

 

 

7,564,760

 

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

 

 

2,250

 

 

2,250,000

 

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

 

 

 

 

 

 

 

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

 

 

3,950

 

 

4,246,605

 

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

 

 

3,000

 

 

3,201,090

 

 

 

 

 

 

 

35,110,439

 

US Virgin Islands — 1.9%

 

 

 

 

 

 

 

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

 

 

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
(000)

 

Value

 

Utah — 0.9%

 

 

 

 

 

 

 

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

 

$

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
Health Services, Series A, 6.75%, 11/15/41

 

 

1,980

 

 

2,181,821

 

Washington Health Care Facilities Authority, Refunding
RB, Catholic Health Initiatives, Series D, 6.38%,
10/01/36

 

 

3,700

 

 

4,157,320

 

 

 

 

 

 

 

6,339,141

 

Wisconsin — 4.2%

 

 

 

 

 

 

 

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

 

 

7,100

 

 

7,943,977

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

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
Tender Option Bond Trusts (h)

 

 

 

 

 

 

 

California — 6.6%

 

 

 

 

 

 

 

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

 

 

3,271

 

 

3,542,025

 

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

 

 

2,610

 

 

2,820,079

 

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

 

 

2,290

 

 

2,402,851

 

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

 

 

1,077

 

 

1,173,205

 

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

 

 

9,480

 

 

9,899,111

 

 

 

 

 

 

 

19,837,271

 

Colorado — 0.8%

 

 

 

 

 

 

 

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

 

 

2,129

 

 

2,230,929

 

Connecticut — 2.1%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility Authority,
RB, Yale University, Series Z-3, 5.05%, 7/01/42

 

 

6,000

 

 

6,458,040

 

Illinois — 1.5%

 

 

 

 

 

 

 

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

 

 

1,320

 

 

1,376,852

 

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

 

 

2,999

 

 

3,164,239

 

 

 

 

 

 

 

4,541,091

 

Maryland — 0.8%

 

 

 

 

 

 

 

Maryland State Transportation Authority, RB,
Transportation Facility Project (AGM), 5.00%, 7/01/41

 

 

2,290

 

 

2,425,476

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

Par
(000)

 

Value

 

Massachusetts — 3.5%

 

 

 

 

 

 

 

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

 

$

10,000

 

$

10,668,300

 

New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

2,009

 

 

2,221,693

 

New York — 4.8%

 

 

 

 

 

 

 

New York City Municipal Water & Sewer Finance
Authority, RB:

 

 

 

 

 

 

 

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,
5.00%, 3/15/35

 

 

5,789

 

 

5,992,015

 

 

 

 

 

 

 

14,359,037

 

North Carolina — 2.2%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Duke University Project, Series A,
5.00%, 10/01/41

 

 

6,239

 

 

6,517,789

 

Ohio — 5.6%

 

 

 

 

 

 

 

Ohio Higher Educational Facility Commission,
Refunding RB, Hospital, Cleveland Clinic Health,
Series A, 5.25%, 1/01/33

 

 

2,400

 

 

2,474,976

 

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

 

 

13,840

 

 

14,403,565

 

 

 

 

 

 

 

16,878,541

 

South Carolina — 1.8%

 

 

 

 

 

 

 

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

 

 

4,995

 

 

5,431,613

 

Texas — 6.2%

 

 

 

 

 

 

 

Harris County Health Facilities Development Corp.,
Refunding RB, School Health Care System, Series B,
5.75%, 7/01/27 (d)(f)

 

 

10,000

 

 

12,479,100

 

Texas Department of Housing & Community Affairs,
MRB, Series B, AMT (Ginnie Mae), 5.25%, 9/01/32

 

 

3,451

 

 

3,497,407

 

Texas State University Systems, Refunding RB (AGM),
5.00%, 3/15/30

 

 

2,743

 

 

2,852,345

 

 

 

 

 

 

 

18,828,852

 

Washington — 5.8%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit Authority, RB,
Series A:

 

 

 

 

 

 

 

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,
Refunding RB, Froedtert & Community Health Inc.,
5.25%, 4/01/39

 

 

2,499

 

 

2,528,396

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 43.2%

 

 

 

 

 

130,515,180

 

Total Long-Term Investments
(Cost — $477,086,406) — 165.3%

 

 

 

 

 

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
(000)

 

 

 

 

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

 

$

3,255

 

 

3,255,000

 

Total Short-Term Securities
(Cost — $12,630,178) — 4.2%

 

 

 

 

 

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
Interest Expense and Fees Payable — (22.6)%

 

 

 

 

 

(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
Appreciation

 

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
Held at
April 30,
2011

 

Net
Activity

 

Shares
Held at
October 31,
2011

 

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
Value

 

 

Unrealized
Appreciation

 

72

 

10-Year US
Treasury Note

 

Chicago Board
of Trade

 

December
2011

 

$

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.

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
Investments1

 

 

 

$

499,963,970

 

 

 

$

499,963,970

 

Short-Term
Securities

 

$

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
Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

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




 

 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 31, 2011 (Unaudited)

 

BlackRock
MuniAssets
Fund, Inc.
(MUA)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Quality
Fund, Inc.
(MUS)

 

BlackRock
Muni Intermediate
Duration
Fund, Inc.
(MUI)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at value — unaffiliated1

 

$

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




 

 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
October 31, 2011 (Unaudited)

 

BlackRock
MuniAssets
Fund, Inc.
(MUA)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Quality
Fund, Inc.
(MUS)

 

BlackRock
Muni Intermediate
Duration
Fund, Inc.
(MUI)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 

Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

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




 

 

Statements of Changes in Net Assets


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock MuniAssets
Fund, Inc. (MUA)

 

BlackRock
MuniEnhanced Fund, Inc. (MEN)

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months Ended
October 31,
2011
(Unaudited)

 

Year Ended
April 30,
2011

 

Six Months Ended
October 31,
2011
(Unaudited)

 

Year Ended
April 30,
2011

 

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
MuniHoldings Fund, Inc. (MHD)

 

BlackRock
MuniHoldings Fund II, Inc. (MUH)

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months Ended
October 31,
2011
(Unaudited)

 

Year Ended
April 30,
2011

 

Six Months Ended
October 31,
2011
(Unaudited)

 

Year Ended
April 30,
2011

 

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
Quality Fund, Inc. (MUS)

 

BlackRock Muni Intermediate
Duration Fund, Inc. (MUI)

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months Ended
October 31,
2011
(Unaudited)

 

Year Ended
April 30,
2011

 

Six Months Ended
October 31,
2011
(Unaudited)

 

Year Ended
April 30,
2011

 

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
Fund II, Inc. (MVT)

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months Ended
October 31,
2011
(Unaudited)

 

Year Ended
April 30,
2011

 

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




 

 

Statements of Cash Flows


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended October 31, 2011 (Unaudited)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings Fund, Inc. (MHD)

 

BlackRock MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Quality
Fund, Inc.
(MUS)

 

BlackRock
MuniIntermediate
Duration
Fund, Inc.
(MUI)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 

Cash Provided by Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in net assets resulting from operations, excluding dividends to AMPS Shareholders

 

$

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




 

 

 

 

Financial Highlights

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2011
(Unaudited)

 

Year Ended
April 30,

 

Period
June 1,
2008 to
April 30,

 

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
Ended
October 31,
2011
(Unaudited)

 

 

 

Period
February 1,
2009 to
April 30,
2009

 

 

 

 

 

 

Year Ended
April 30,

 

 

 

 

 

 

 

 

 

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
Ended
October 31,
2011
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

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
Ended
October 31,
2011
(Unaudited)

 

 

 

 

 

 

 

Period
August 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended
April 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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
Ended
October 31,
2011
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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
Ended
October 31,
2011

 

Year Ended April 30,

 

Period
June 1,
2008 to
April 30,

 

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
Applicable to Common
Shareholders2

 

 

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
Assets Applicable to
Common Shareholders

 

 

 

 

 

 

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
Ended
October 31,
2011

 

Year Ended
April 30,

 

Period
November 1,

2008 to
April 30,

 

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
Applicable to Common
Shareholders2

 

 

 

 

 

 

 

 

 

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
Assets Applicable to
Common Shareholders

 

 

 

 

 

 

 

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




 

 

Notes to Financial Statements (Unaudited)

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
Reorganization


Conversion
Ratio


Shares of
MUA


APX



19,990,638



0.72861057



14,565,391


APX’s net assets and composition of net assets on February 25, 2011, the date of the merger, were as follows:

 

 

 

 

 

 

 

 

 

 

 

Target Fund

 

Net Assets
Applicable to
Common
Shareholders

 

Paid-in
Capital

 

Undistributed
Net Investment
Income

 

APX

 

$

176,471,885

 

$

192,252,646

 

$

670,780

 


 

 

 

 

 

 

 

 

Target Fund

 

Accumulated
Net
Realized Loss

 

Net Unrealized
Depreciation

 

APX

 

$

(8,314,694

)

$

(8,136,847

)

For financial reporting purposes, assets received and shares issued by MUA were recorded at fair value; however, the cost basis of the investments received from APX was carried forward to align ongoing reporting of MUA’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The aggregate net assets of MUA immediately after the acquisition amounted to $433,042,831. APX’s fair value and cost of investments prior to the reorganization 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
Municipal
Bonds
Transferred to
TOBs

 

Liability for
TOB Trust
Certificates

 

Range of
Interest
Rates

 

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
Certificates
Outstanding

 

Daily Weighted
Average
Interest Rate

 

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

 

 


Asset Derivatives

 

 

 

 

 

MHD

 

MUH

 

MVT

 

 

 

Statement of Assets
and Liabilities Location

 

 

 

 

Value

 

 

 

 

Interest rate contracts

 

Net unrealized appreciation/depreciation*

 

$

50,602

 

$

35,363

 

$

92,019

 

 

 


Liability Derivatives

 

 

 

 

 

 

 

 

 

 

 

MUA

 

 

 

Statement of Assets
and Liabilities Location

 

 

 

 

 

 

 

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
Six Months Ended October 31, 2011

 

 

 


Net Realized Loss From

 

 

 

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
October 31, 2011

 

Year Ended
April 30, 2011

 

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
Yield

 

 

Reset
Frequency
Days

 

 

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
Date

 

Shares
Redeemed

 

Aggregate
Principal

 

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
Date

 

Shares
Redeemed

 

Aggregate
Principal

 

MUI

 

M7

 

4/05/11

 

 

1,795

 

$

44,875,000

 

 

 

T7

 

4/06/11

 

 

2,423

 

$

60,575,000

 

 

 

W7

 

4/07/11

 

 

1,795

 

$

44,875,000

 

 

 

TH7

 

4/08/11

 

 

2,423

 

$

60,575,000

 

 

 

F7

 

4/04/11

 

 

1,795

 

$

44,875,000

 

 

 

TH28

 

4/08/11

 

 

1,256

 

$

31,400,000

 

MUI financed the AMPS redemptions with the proceeds received from the issuance of VRDP Shares of $287,100,000.

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
Issued

 

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
Issued

 

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
Per Share

 

MUA

 

$

0.0625

 

MEN

 

$

0.0570

 

MHD

 

$

0.0905

 

MUH

 

$

0.0815

 

MUS

 

$

0.0740

 

MUI

 

$

0.0715

 

MVT

 

$

0.0885

 

The dividends declared on AMPS or VRDP Shares for the period November 1, 2011 to November 30, 2011 were as follows:

 

 

 

 

 

 

 

 

 

 

 

Series

 

Dividends
Declared

 

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
Issued

 

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
Date

 

Redemption
Date

 

Shares
Redeemed

 

Liquidation
Preference
Per Share

 

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

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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.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

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69




 

 

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.

 

 

 

 

 

 

70

SEMI-ANNUAL REPORT

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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.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

OCTOBER 31, 2011

71




 

 

Officers and Directors


 

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

James T. Flynn, Director and Member of the Audit Committee

Henry Gabbay, Director

Jerold B. Harris, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director and Member of the Audit Committee

John M. Perlowski, President and Chief Executive Officer

Anne Ackerley, Vice President

Brendan Kyne, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Brian Kindelan, Chief Compliance Officer and

Anti-Money Laundering Officer

Ira P. Shapiro, Secretary


 

Effective July 28, 2011, Richard S. Davis resigned as Director of
the Funds, and Paul L. Audet became Director of the Funds.


 

Investment Advisor

 

BlackRock Advisors, LLC

Wilmington, DE 19809

 

 

Sub-Advisor

 

BlackRock Investment Management, LLC

Princeton, NJ 08540

 

Custodians

 

The Bank of New York Mellon1

New York, NY 10286

 

State Street Bank and Trust Company2

Boston, MA 02110

 

Transfer Agents

 

Common Shares:

BNY Mellon Shareowner Services1

Jersey City, NJ 07310

 

Computershare Trust Company, N.A.2

Providence, RI 02940

 

AMPS Auction Agent

 

BNY Mellon Shareowner Services3

Jersey City, NJ 07310

 

VRDP Tender and Paying Agent

 

The Bank of New York Mellon4

New York, NY 10289

 

VRDP Remarketing Agents

 

Citigroup Global Markets Inc.5

New York, NY 10179

 

J.P. Morgan Securities LLC6

New York, NY 10179

 

Accounting Agent

 

State Street Bank and Trust Company

Boston, MA 02110

 

Independent Registered Public Accounting Firm

 

Deloitte & Touche LLP

Boston, MA 02116

 

Legal Counsel

 

Skadden, Arps, Slate, Meagher & Flom LLP

New York, NY 10036

 

Address of the Funds

 

100 Bellevue Parkway

Wilmington, DE 19809


 

 

 

 

1

For MUA, MHD, MUH, MUS and MVT.

 

 

2

For MEN and MUI.

 

 

3

For MUH, MUS and MVT.

 

 

4

For MEN, MHD and MUI.

 

 

5

For MEN.

 

 

6

For MUI.


 

 

 

 

 

 

72

SEMI-ANNUAL REPORT

OCTOBER 31, 2011




 

 

Additional Information

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paul L. Audet

 

Michael J. Castellano

 

R. Glenn Hubbard

 

 

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 

MUA

 

32,119,362

 

1,290,980

 

0

 

32,105,120

 

1,305,222

 

0

 

32,133,705

 

1,276,637

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

W. Carl Kester

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes
Withheld

 

Abstain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MUA

 

32,136,303

 

1,274,039

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paul L. Audet

 

Michael J. Castellano

 

Richard E. Cavanagh

 

 

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Frank J. Fabozzi1

 

Kathleen F. Feldstein

 

James T. Flynn

 

 

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

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
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

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
Withheld

 

Abstain

 

Votes For

 

Votes
Withheld

 

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.


 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

OCTOBER 31, 2011

73




 

 

Additional Information (continued)

 

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.

 

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.

 

 

 

 

 

 

74

SEMI-ANNUAL REPORT

OCTOBER 31, 2011




 

 

Additional Information (concluded)

 

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.

 

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.

 

 

 

 

 

 

 

 

 

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.

(GO PAPERLESS LOGO)

 

 

#CEMUNI7-10/11-SAR

(BLACKROCK LOGO)


Item 2 –

Code of Ethics – Not Applicable to this semi-annual report

 

 

Item 3 –

Audit Committee Financial Expert – Not Applicable to this semi-annual report

 

 

Item 4 –

Principal Accountant Fees and Services – Not Applicable to this semi-annual report

 

 

Item 5 –

Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

 

 

Item 6 –

Investments

 

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

 

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report

 

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies

 

(a) Not Applicable to this semi-annual report

 

(b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

 

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

 

 

Item 10 –

Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

 

 

Item 11 –

Controls and Procedures

 

 

 

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

 

 

 

(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 12 –

Exhibits attached hereto

 

 

 

(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

 

 

 

(a)(2) – Certifications – Attached hereto

 

 

 

(a)(3) – Not Applicable

 

 

 

(b) – Certifications – Attached hereto

 


 

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

 

 

 

BlackRock Muni Intermediate Duration Fund, Inc.

 

 

 

By: /s/ John M. Perlowski

 

 

 

John M. Perlowski

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock Muni Intermediate Duration Fund, Inc.

 

 

 

Date: January 03, 2012

 

 

 

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 Muni Intermediate Duration Fund, Inc.

 

 

 

Date: January 03, 2012

 

 

 

By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

 

BlackRock Muni Intermediate Duration Fund, Inc.

 

 

 

 

Date: January 03, 2012