UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-08707

 

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

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

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

 

Date of fiscal year end: 04/30/2012

 

Date of reporting period: 01/31/2012

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments January 31, 2012 (Unaudited)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)
 (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%, 6/01/39

 

$

2,330

 

$

2,672,277

 

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

 

 

2,170

 

 

1,988,089

 

Selma Industrial Development Board, RB,
International Paper Company Project,
Series A, 5.38%, 12/01/35

 

 

565

 

 

590,640

 

 

 

 

 

 

 

5,251,006

 

California — 15.9%

 

 

 

 

 

 

 

California Health Facilities Financing
Authority, RB, Scripps Health, Series A,
5.00%, 11/15/40 (a)

 

 

240

 

 

257,858

 

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

 

 

1,730

 

 

1,993,029

 

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

 

 

2,895

 

 

3,256,036

 

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

 

 

1,325

 

 

1,514,952

 

City of San Jose California, ARB,
Series A-1, AMT:

 

 

 

 

 

 

 

5.50%, 3/01/30

 

 

2,400

 

 

2,608,944

 

5.75%, 3/01/34

 

 

2,180

 

 

2,408,638

 

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

 

 

1,605

 

 

1,818,786

 

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

 

 

2,100

 

 

2,285,325

 

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

 

 

1,500

 

 

1,718,850

 

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

 

 

1,575

 

 

1,746,455

 

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

 

 

1,825

 

 

2,031,663

 

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

 

 

1,335

 

 

1,560,975

 

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

 

 

1,250

 

 

1,495,638

 

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

 

 

 

 

 

 

 

5.66%, 12/01/24

 

 

2,635

 

 

1,319,002

 

5.66%, 12/01/25

 

 

2,355

 

 

1,108,781

 

5.66%, 12/01/26

 

 

2,355

 

 

1,041,428

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

1,850

 

$

2,116,585

 

 

 

 

 

 

 

30,282,945

 

Colorado — 1.4%

 

 

 

 

 

 

 

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

 

 

1,900

 

 

2,246,845

 

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

 

 

455

 

 

514,332

 

 

 

 

 

 

 

2,761,177

 

District of Columbia — 1.2%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,266,400

 

Florida — 9.5%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,838,500

 

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

 

 

1,500

 

 

1,620,180

 

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

 

 

2,215

 

 

2,248,402

 

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

 

 

1,465

 

 

1,609,302

 

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

 

 

4,645

 

 

5,172,161

 

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

 

 

3,995

 

 

4,528,932

 

 

 

 

 

 

 

18,017,477

 

Illinois — 18.6%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Series A:

 

 

 

 

 

 

 

5.50%, 12/01/39

 

 

2,000

 

 

2,266,160

 

5.00%, 12/01/41

 

 

4,330

 

 

4,635,655

 

City of Chicago Illinois, RB, Series A,
5.25%, 1/01/38

 

 

795

 

 

896,490

 

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

 

 

 

 

 

 

 

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

 

 

1,145

 

 

1,306,903

 

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

 

 

5,225

 

 

6,314,099

 

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

 

 

1,255

 

 

1,380,174

 

Series A (AGM), 5.00%, 1/01/33

 

 

8,000

 

 

8,543,440

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JANUARY 31, 2012

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)
 (Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

City of Chicago Illinois, Transit Authority,
RB:

 

 

 

 

 

 

 

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

 

$

2,000

 

$

2,372,060

 

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

 

 

635

 

 

709,930

 

Sales Tax Receipts, 5.25%,
12/01/40

 

 

1,810

 

 

2,018,856

 

Railsplitter Tobacco Settlement Authority,
RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

1,405

 

 

1,602,992

 

6.00%, 6/01/28

 

 

400

 

 

448,528

 

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

 

 

2,500

 

 

2,844,650

 

 

 

 

 

 

 

35,339,937

 

Indiana — 8.4%

 

 

 

 

 

 

 

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

 

 

2,720

 

 

3,138,771

 

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

 

 

5,000

 

 

5,271,200

 

Indianapolis Local Public Improvement
Bond Bank, RB:

 

 

 

 

 

 

 

Series 2011F, 5.25%, 2/01/36

 

 

3,055

 

 

3,469,747

 

Series 2011K, 5.00%, 6/01/25

 

 

2,140

 

 

2,464,638

 

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

 

 

1,430

 

 

1,603,373

 

 

 

 

 

 

 

15,947,729

 

Iowa — 0.6%

 

 

 

 

 

 

 

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

 

 

1,080

 

 

1,194,156

 

Massachusetts — 1.3%

 

 

 

 

 

 

 

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

 

 

2,440

 

 

2,444,441

 

Michigan — 8.2%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

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

 

 

2,410

 

 

2,709,611

 

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

 

 

750

 

 

946,688

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

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

 

 

4,810

 

 

5,957,906

 

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

 

 

1,910

 

 

2,127,243

 

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

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

875

 

 

1,017,415

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 10/15/25

 

$

455

 

$

526,672

 

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

 

 

1,910

 

 

2,361,944

 

 

 

 

 

 

 

15,647,479

 

Minnesota — 0.8%

 

 

 

 

 

 

 

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

 

 

1,325

 

 

1,564,136

 

Nevada — 6.0%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,246,280

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

2,510

 

 

2,737,030

 

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

 

 

1,750

 

 

1,878,450

 

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

 

 

4,440

 

 

4,556,594

 

 

 

 

 

 

 

11,418,354

 

New Jersey — 8.8%

 

 

 

 

 

 

 

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

 

 

6,700

 

 

7,188,095

 

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

 

 

2,100

 

 

2,298,954

 

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

 

 

 

 

 

 

 

Series A, 5.50%, 6/15/41

 

 

1,780

 

 

2,042,354

 

Series A (AGC), 5.63%, 12/15/28

 

 

3,500

 

 

4,040,750

 

Series B 5.25%, 6/15/36

 

 

1,000

 

 

1,125,150

 

 

 

 

 

 

 

16,695,303

 

New York — 7.7%

 

 

 

 

 

 

 

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

 

 

2,510

 

 

2,836,325

 

New York City Municipal Water and Sewer
Finance Authority, RB, Second General
Resolution:

 

 

 

 

 

 

 

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

 

 

3,410

 

 

3,801,706

 

Fiscal 2012, Series BB, 5.00%,
6/15/44

 

 

1,500

 

 

1,670,490

 

Series EE, 5.38%, 6/15/43

 

 

1,305

 

 

1,492,320

 

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

 

 

1,400

 

 

1,548,246

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JANUARY 31, 2012

2


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York (concluded)

 

 

 

 

 

 

 

New York State Dormitory Authority, RB,
General Purpose, Series C, 5.00%,
3/15/41

 

$

3,025

 

$

3,396,712

 

 

 

 

 

 

 

14,745,799

 

Pennsylvania — 1.7%

 

 

 

 

 

 

 

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

 

 

1,720

 

 

1,858,701

 

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

 

 

1,215

 

 

1,345,710

 

 

 

 

 

 

 

3,204,411

 

Puerto Rico — 1.3%

 

 

 

 

 

 

 

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

 

 

2,115

 

 

2,469,030

 

Texas — 22.9%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,747,800

 

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

 

 

 

 

 

 

 

5.00%, 11/15/28

 

 

1,080

 

 

1,242,140

 

5.00%, 11/15/29

 

 

1,365

 

 

1,554,121

 

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

 

 

4,000

 

 

4,820,880

 

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

 

 

1,840

 

 

2,121,134

 

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

 

 

3,175

 

 

3,534,410

 

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

 

 

1,200

 

 

1,372,164

 

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

 

 

600

 

 

713,964

 

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

 

 

775

 

 

875,727

 

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

 

 

4,550

 

 

5,261,256

 

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

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

4,885

 

 

5,299,150

 

Series A, 5.63%, 1/01/33

 

 

6,585

 

 

7,241,854

 

Series B, 5.75%, 1/01/40

 

 

6,275

 

 

6,806,994

 

 

 

 

 

 

 

43,591,594

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Utah — 0.6%

 

 

 

 

 

 

 

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

 

$

1,000

 

$

1,076,650

 

Virginia — 0.9%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,774,305

 

Washington — 1.5%

 

 

 

 

 

 

 

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

 

 

1,375

 

 

1,581,154

 

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

 

 

1,075

 

 

1,243,420

 

 

 

 

 

 

 

2,824,574

 

Total Municipal Bonds – 120.1%

 

 

 

 

 

228,516,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Alabama — 1.2%

 

 

 

 

 

 

 

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

 

 

2,120

 

 

2,248,938

 

California — 2.5%

 

 

 

 

 

 

 

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

 

 

1,258

 

 

1,323,790

 

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

 

 

3,149

 

 

3,431,957

 

 

 

 

 

 

 

4,755,747

 

Colorado — 3.1%

 

 

 

 

 

 

 

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

 

 

5,610

 

 

5,903,347

 

District of Columbia — 0.7%

 

 

 

 

 

 

 

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

 

 

1,040

 

 

1,299,245

 

Florida — 7.4%

 

 

 

 

 

 

 

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

 

 

4,302

 

 

4,506,843

 

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

 

 

7,500

 

 

8,615,475

 

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

 

 

960

 

 

1,026,115

 

 

 

 

 

 

 

14,148,433

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JANUARY 31, 2012

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

Georgia — 2.3%

 

 

 

 

 

 

 

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

 

$

4,000

 

$

4,342,360

 

Illinois — 1.4%

 

 

 

 

 

 

 

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

 

 

2,509

 

 

2,725,507

 

Kentucky — 0.8%

 

 

 

 

 

 

 

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

 

 

1,406

 

 

1,621,692

 

Massachusetts — 6.5%

 

 

 

 

 

 

 

Massachusetts School Building Authority,
Sales Tax Revenue RB:

 

 

 

 

 

 

 

Senior, Series B, 5.00%,
10/15/41

 

 

3,060

 

 

3,469,826

 

Series A (AGM), 5.00%, 8/15/30

 

 

8,008

 

 

8,941,710

 

 

 

 

 

 

 

12,411,536

 

Nevada — 5.4%

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

5,000

 

 

5,850,400

 

Series B, 5.50%, 7/01/29

 

 

3,749

 

 

4,408,854

 

 

 

 

 

 

 

10,259,254

 

New Jersey — 1.4%

 

 

 

 

 

 

 

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

 

 

2,401

 

 

2,575,058

 

New York — 4.3%

 

 

 

 

 

 

 

New York Liberty Development Corp., RB:

 

 

 

 

 

 

 

1 World Trade Center Port
Authority Construction, 5.25%,
12/15/43

 

 

4,530

 

 

5,146,216

 

4 World Trade Center Project,
5.75%, 11/15/51

 

 

2,660

 

 

3,026,894

 

 

 

 

 

 

 

8,173,110

 

Puerto Rico — 1.1%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, Series C, 5.25%, 8/01/40

 

 

1,820

 

 

2,021,128

 

Washington — 2.3%

 

 

 

 

 

 

 

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

 

 

4,002

 

 

4,462,878

 

Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts – 40.4%

 

 

 

 

 

76,948,233

 

Total Long-Term Investments
(Cost – $279,505,187) – 160.5%

 

 

 

 

 

305,465,136

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 

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

 

 

6,534,429

 

$

6,534,429

 

Total Short-Term Securities
(Cost – $6,534,429) – 3.4%

 

 

 

 

 

6,534,429

 

Total Investments (Cost - $286,039,616*) 163.9%

 

 

 

 

 

311,999,565

 

Other Assets Less Liabilities – 2.0%

 

 

 

 

 

3,779,472

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (20.2)%

 

 

 

 

 

(38,401,214

)

Preferred Shares, at Redemption Value – (45.7)%

 

 

 

 

 

(87,000,000

)

Net Assets – 100.0%

 

 

 

 

$

190,377,823

 

 

 

 

*

As of January 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

 

 

 

 

Tax Cost

 

$

247,698,173

 

Gross unrealized appreciation

 

$

26,196,474

 

Gross unrealized depreciation

 

 

(280,496

)

Net unrealized appreciation

 

$

25,915,978

 

 

 

(a)

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

 

 

 

 

 

 

 

 

 Counterparty

 

Value

 

Unrealized
Appreciation

 

 JPMorgan Securities

 

$

257,858

 

$

2,594

 

 

 

(b)

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

 

 

(c)

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

 

 

(d)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
April 30,
2011

 

Net
Activity

 

Shares
Held at
January 31,
2012

 

Income

 

FFI Institutional Tax-Exempt Fund

 

 

6,952,084

 

 

(417,655

)

 

6,534,429

 

$

1,885

 

 

 

(e)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of January 31, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

64

 

10-Year
US
Treasury
Note

 

Chicago
Board
of Trade

 

March
2012

 

$

8,464,000

 

$

(112,122

)

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JANUARY 31, 2012

4


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

Portfolio Abbreviations

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

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

FGIC

Financial Guaranty Insurance Co.

Ginnie Mae

Government National Mortgage Association

GO

General Obligation Bonds

HFA

Housing Finance Agency

ISD

Independent School District

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

S/F

Single-Family

 

 

•

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 the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the inputs used as of January 31, 2012 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

 

 

 

 

$

305,465,136

 

 

—

 

$

305,465,136

 

Short-Term Securities

 

$

6,534,429

 

 

—

 

 

—

 

 

6,534,429

 

Total

 

$

6,534,429

 

$

305,465,136

 

 

—

 

$

311,999,565

 

 

 

1

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(112,122

)

 

—

 

 

—

 

$

(112,122

)

 

 

2

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

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND, INC.

JANUARY 31, 2012

5

Item 2 –

Controls and Procedures

 

 

2(a) –

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

 

 

2(b) –

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

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

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

 

 

 

BlackRock MuniHoldings Quality Fund, Inc.
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Quality Fund, Inc.
   
  Date: March 23, 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 MuniHoldings Quality Fund, Inc.
   
  Date: March 23, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniHoldings Quality Fund, Inc.
     
  Date: March 23, 2012