BLACKROCK MUNI INTERMEDIATE DURATION FUND, INC.
Table of Contents

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: 04/30/2013

Date of reporting period: 04/30/2013


Table of Contents
Item 1 –   Report to Stockholders


Table of Contents

APRIL 30, 2013

 

 

 

 

 

ANNUAL REPORT

 

    LOGO

 

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 • May Lose Value • No Bank Guarantee


Table of Contents
Table of Contents     

 

     Page  

Dear Shareholder

    3   

Annual Report:

 

Municipal Market Overview

    4   

The Benefits and Risks of Leveraging

    5   

Derivative Financial Instruments

    5   

Fund Summaries

    6   
Financial Statements:  

Schedules of Investments

    20   

Statements of Assets and Liabilities

    63   

Statements of Operations

    64   

Statements of Changes in Net Assets

    65   

Statements of Cash Flows

    67   

Financial Highlights

    68   

Notes to Financial Statements

    75   

Report of Independent Registered Public Accounting Firm

    86   

Automatic Dividend Reinvestment Plan

    87   

Officers and Directors

    88   

Additional Information

    91   

 

                
2    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Dear Shareholder

 

About this time one year ago, financial market activity was dominated by concerns about Europe’s debt crisis. Investors were also discouraged by gloomy economic reports from various parts of the world, particularly in China. As the outlook for the global economy worsened, however, investors grew increasingly optimistic that the world’s largest central banks would intervene to stimulate growth. This theme, along with the European Central Bank’s (“ECB’s”) firm commitment to preserve the euro currency bloc, drove most asset classes higher through the summer of 2012. In early September, the ECB announced its sovereign bond-buying program designed to support the region’s debt-laden countries. Days later, the US Federal Reserve announced its own much-anticipated stimulus package.

Although financial markets world-wide were buoyed by these aggressive policy actions, risk assets weakened in the fall of 2012. Global trade slowed as many European countries fell into recession and growth continued to decelerate in China. In the United States, stocks slid on lackluster corporate earnings and volatility rose in advance of the US Presidential election. In the post-election environment, investors became more concerned about the “fiscal cliff,” the automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013. High levels of global market volatility persisted through year-end due to fears that bipartisan gridlock would preclude a timely resolution, putting the US economy at high risk for recession. Ultimately, the worst of the fiscal cliff was averted with a last-minute tax deal, although decisions relating to spending cuts and the debt ceiling were postponed, leaving lingering uncertainty.

Investors shook off the nerve-wracking finale to 2012 and the New Year began with a powerful relief rally. Money that had been pulled to the sidelines amid year-end tax-rate uncertainty poured back into the markets in January. Key indicators signaling modest but broad-based improvements in the world’s major economies underpinned the rally. Underlying this aura of comfort was the absence of negative headlines out of Europe. Against this backdrop, global equities surged through January while rising US Treasury yields pressured high quality fixed income assets (as prices move in the opposite direction of yields).

However, bond markets regained strength in February (as yields once again dropped) when global economic momentum slowed and investors toned down their risk appetite. International stock markets weakened amid a resurgence of macro risk out of Europe. A stalemate presidential election in Italy was a reminder that political instability continued to plague the eurozone and a severe banking crisis in Cyprus underscored the fragility of the broader European banking system. In the United States, stocks continued to rise, but at a more moderate pace. Investors grew more cautious given uncertainty as to how long the central bank would continue its stimulus programs. How government spending cuts would impact the already slow economic recovery was another concern. But improving labor market data and rising home prices boosted sentiment in March, pushing major US stock indices to all-time highs. Investors scaled back their enthusiasm in April due to a series of disappointing economic reports. On the whole, US stocks have performed well thus far in 2013 as the US economy demonstrated enough resilience to allay fears of recession, but growth has remained slow enough to dissuade the US Federal Reserve from changing its stance.

Despite continued headwinds for global growth, risk assets have rallied, driven largely by investors seeking meaningful yields in the ongoing low-interest-rate environment. For the 6- and 12-month periods ended April 30, 2013, US and international stocks and high yield bonds posted strong gains. Emerging market equities lagged the rally as the uneven pace of global growth raised doubts that developing economies could thrive in the near term. US Treasury yields were highly volatile over the past 12 months, although they continue to remain low from a historical perspective. US Treasury and investment-grade bonds generated modest returns in this environment, while tax-exempt municipal bonds benefited from favorable supply-and-demand dynamics. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.

Market conditions have improved over the past couple of years, but investors still remain highly uncertain and many of the old ways of investing no longer work. That’s why the new world of investing calls for a new approach. One that seeks out more opportunities in more places across a broader array of investments in a portfolio designed to move freely as the markets move up and down. Visit www.blackrockplan.com to learn more about how to take action.

 

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

LOGO

“Despite continued headwinds for global growth, risk assets have rallied, driven largely by investors seeking meaningful yields in the ongoing low-interest-rate environment.”

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of April 30, 2013  
    6-month     12-month  

US large cap equities
(S&P 500® Index)

    14.42     16.89

US small cap equities
(Russell 2000® Index)

    16.58        17.69   

International equities
(MSCI Europe, Australasia, Far East Index)

    16.90        19.39   

Emerging market equities
(MSCI Emerging Markets Index)

    5.29        3.97   

3-month Treasury bill
(BofA Merrill Lynch
3-Month US Treasury
Bill Index)

    0.06        0.12   

US Treasury securities
(BofA Merrill Lynch 10-Year US Treasury Index)

    1.52        5.07   

US investment grade
bonds (Barclays US Aggregate Bond Index)

    0.90        3.68   

Tax-exempt municipal
bonds (S&P Municipal Bond Index)

    2.01        5.74   

US high yield bonds

(Barclays US Corporate High Yield 2% Issuer Capped Index)

    7.26        13.95   
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


Table of Contents
Municipal Market Overview     

 

For the Reporting Period Ended April 30, 2013      

Municipal Bonds Performed Well

Market conditions remained favorable even though supply picked up considerably in the past year. Total new issuance for the 12 months ended April 30, 2013 was $383 billion as compared to $337 billion in the prior 12-month period. However, it is important to note that a significant portion (roughly 60%) of the new supply during the most recent 12-month period was attributable to refinancing activity as issuers took advantage of lower interest rates to reduce their borrowing costs. More recently, municipal issuers have favored the taxable market, where issuance is up 139% year-over-year.

Increased supply was met with strong demand during the period as investors were starved for yield in the low-rate, low-return environment. Investors poured into municipal bond mutual funds, favoring long-duration and high-yield funds as they tend to provide higher levels of income. For the 12 months ended April 30, 2013, municipal bond fund inflows exceeded $39.7 billion (according to the Investment Company Institute).

S&P Municipal Bond Index

Total Returns as of April 30, 2013

  6 months:   2.01%

12 months:   5.74%

A Closer Look at Yields

LOGO

From April 30, 2012 to April 30, 2013, muni yields declined by 41 basis points (“bps”) from 3.25% to 2.84% on AAA-rated 30-year municipal bonds, while falling 18 bps from 1.87% to 1.69% on 10-year bonds and dropping a modest 8 bps from 0.82% to 0.74% on 5-year issues (as measured by Thomson Municipal Market Data). (Bond prices rise as yields fall.) Overall, the municipal yield curve remained relatively steep, but flattened considerably over the 12-month period as the spread between 2- and 30-year maturities tightened by 39 bps and the spread between 2- and 10-year maturities tightened by 16 bps.

During the same time period, US Treasury rates fell by 23 bps on 30-year and 25 bps on 10-year bonds, while moving down 13 bps on 5-year issues. Accordingly, tax-exempt municipal bonds moderately underperformed Treasuries in the 5- and 10-year space, but significantly outperformed Treasury bonds on the long end of the curve. This outperformance was driven largely by a supply/demand imbalance within the municipal market while evidence of a recovering domestic economy coupled with the removal of certain political and tax policy uncertainties pushed interest rates higher. Additionally, as higher US tax rates began to appear imminent late in 2012, municipal bonds benefited from the increased appeal of tax-exempt investing. The municipal market has become an attractive avenue for investors seeking yield in the low-rate, low-return environment as the asset class is known for its lower volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers Continue to Improve

Austerity and de-leveraging have been the general themes across the country as states seek to balance their budgets, although a small number of states continue to rely on a “kick-the-can” approach to close their budget gaps. Broadly speaking, state governments have demonstrated better fiscal health as their revenues have steadily improved in recent years while they cut more than 700,000 jobs. Many local municipalities, however, continue to face increased health care and pension costs passed down from the state level. BlackRock maintains the view that municipal bond defaults will be minimal and remain in the periphery, and that the overall market is fundamentally sound. We continue to recognize that careful credit research, appropriate structure and security selection remain imperative amid uncertainty in this fragile 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    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
The Benefits and Risks of Leveraging     

 

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

To obtain leverage, the Funds, except MUA, issue Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”). Preferred Shares pay dividends at prevailing short-term interest rates, and the Funds 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.

The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV. However, in order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be lower than if the Funds had not used leverage.

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 holders of Common Shares (“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 and/or debt securities 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 tender option bond trusts (“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, as amended (the “1940 Act”), the Funds are permitted to issue senior securities in the form of equity securities (e.g., Preferred Shares) up to 50% of their total managed assets (each Fund’s total assets less the sum of its accrued liabilities). In addition, each Fund voluntarily limits its economic leverage to 50% of its total managed assets, while each Fund with VRDP Shares or VMTP Shares outstanding limits its economic leverage to 45% of its total managed assets. As of April 30, 2013, the Funds had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

 

      Percent of
Economic
Leverage
 

MUA

     13

MEN

     37

MHD

     37

MUH

     37

MUS

     41

MUI

     38

MVT

     41

 

Derivative Financial Instruments     

 

The Funds may invest in various derivative financial instruments, including financial futures contracts and options, 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, interest rate and/or other 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.

 

                
   ANNUAL REPORT    APRIL 30, 2013    5


Table of Contents
Fund Summary as of April 30, 2013    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 to the issuer, 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      
Ÿ  

For the 12-month period ended April 30, 2013, the Fund returned 12.22% based on market price and 12.70% based on NAV. For the same period, the closed-end Lipper High Yield Municipal Debt Funds category posted an average return of 10.40% based on market price and 12.70% based on NAV. 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.

 

Ÿ  

The Fund’s holdings of lower-quality investment grade, non-investment grade and non-rated bonds had a positive impact on performance as these segments benefited from the ongoing contraction in credit spreads. The Fund’s use of leverage enhanced results in the municipal market rally. A preference for securities with longer maturities proved beneficial as the yield curve flattened during the period (long-term rates fell more than short- and intermediate-term rates). Also contributing positively were the Fund’s concentrations in the strong-performing transportation, health and corporate sectors.

 

Ÿ  

The Fund’s below-average distribution yield represented an opportunity cost versus its more highly leveraged Lipper category peers. Additionally, the Fund held low exposure to the tobacco sector, which was the strongest-performing sector for the period. A greater commitment to this sector would have benefited the Fund’s 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 New York Stock Exchange (“NYSE”)

   MUA

Initial Offering Date

   June 25, 1993

Yield on Closing Market Price as of April 30, 2013 ($13.96)1

   5.37%

Tax Equivalent Yield2

   9.49%

Current Monthly Distribution per Common Share3

   $0.0625

Current Annualized Distribution per Common Share3

   $0.7500

Economic Leverage as of April 30, 20134

   13%

 

  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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

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

 

  4   

Represents 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 5.

 

                
6    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
     BlackRock MuniAssets Fund, Inc.

 

Market Price and Net Asset Value      

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

 

        4/30/13        4/30/12        Change      High        Low  

Market Price

     $ 13.96         $ 13.15           6.16    $ 14.60         $ 13.01   

Net Asset Value

     $ 14.36         $ 13.47           6.61    $ 14.44         $ 13.47   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Fund’s long-term investments:

 

Sector Allocation         
      4/30/13     4/30/12  

Health

     25     27

Transportation

     21        21   

County/City/Special District/School District

     15        13   

Corporate

     14        16   

Utilities

     12        10   

Education

     5        6   

Tobacco

     4        4   

State

     4        3   

 

Credit Quality Allocation1  
     

4/30/13

    4/30/12  

 

  

 

 

   

 

 

 

AAA/Aaa

     1     1

AA/Aa

     20        18   

A

     11        11   

BBB/Baa

     28        27   

BB/Ba

     4        6   

B

     7        7   

CCC/Caa

     1        2   

CC/Ca

            1   

Not Rated2

     28        27   

 

  1   

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

 

  2   

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012, the market value of these securities was $22,305,427, representing 4%, and $25,540,846, representing 5%, respectively, of the Fund’s long-term investments.

Call/Maturity Schedule3        

Calendar Year Ended December 31,

  

2013

     12

2014

     6   

2015

     4   

2016

     3   

2017

     5   
  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

                
   ANNUAL REPORT    APRIL 30, 2013    7


Table of Contents
Fund Summary as of April 30, 2013    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 rated investment grade quality at the time of investment and invests primarily in long-term municipal bonds with maturities 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      
Ÿ  

For the 12-month period ended April 30, 2013, the Fund returned 14.69% based on market price and 10.16% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 8.05% based on market price and 10.61% based on NAV. 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.

 

Ÿ  

The Fund benefited from the accrual of income generated from coupon payments on its fully invested portfolio of tax-exempt municipal bonds. The Fund’s positive performance was also driven by the flattening of the municipal yield curve during the period (long-term municipal rates fell more than short- and intermediate-term rates) as well as the overall decline in tax-exempt interest rates (bond prices rise when interest rates fall) and the tightening of municipal credit spreads. Exposure to zero-coupon municipal bonds boosted results as these types of bonds perform particularly well amid declining interest rates and tightening spreads.

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 April 30, 2013 ($12.65)1

   5.50%

Tax Equivalent Yield2

   9.72%

Current Monthly Distribution per Common Share3

   $0.058

Current Annualized Distribution per Common Share3

   $0.696

Economic Leverage as of April 30, 20134

   37%

 

  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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

The Monthly Distribution per Common Share, declared on June 3, 2013, was increased to $0.0605 per share. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

 

  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 5.

 

                
8    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
     BlackRock MuniEnhanced Fund, Inc.

 

 

Market Price and Net Asset Value      

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

 

        4/30/13        4/30/12        Change      High        Low  

Market Price

     $ 12.65         $ 11.66           8.49    $ 13.65         $ 11.62   

Net Asset Value

     $ 12.63         $ 12.12           4.21    $ 12.98         $ 12.12   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Fund’s long-term investments:

 

Sector Allocation         
      4/30/13     4/30/12  

Transportation

     24     24

County/City/Special District/School District

     22        25   

State

     20        19   

Utilities

     14        13   

Health

     9        7   

Education

     7        7   

Corporate

     2        3   

Housing

     2        2   
Credit Quality Allocation1  
      4/30/13     4/30/12  

AAA/Aaa

     14     15

AA/Aa

     57        58   

A

     25        20   

BBB/Baa

     3        6   

B

     1        1   

 

  1   

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

 

Call/Maturity Schedule2        

Calendar Year Ended December 31,

  

2013

     5

2014

     9   

2015

     7   

2016

     4   

2017

     13   

 

  2   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

                
   ANNUAL REPORT    APRIL 30, 2013    9


Table of Contents
Fund Summary as of April 30, 2013    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      
Ÿ  

For the 12-month period ended April 30, 2013, the Fund returned 8.21% based on market price and 12.20% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 8.05% based on market price and 10.61% based on NAV. All returns reflect reinvestment of dividends. The Fund’s premium 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.

 

Ÿ  

During the period, the Fund benefited from its overall long duration bias (greater sensitivity to interest rates) and preference for longer-dated bonds as interest rates declined (bond prices rise when interest rates fall) and the yield curve flattened (long-term rates fell more than short- and intermediate-term rates). The Fund’s allocations to lower-quality investment grade, non-investment grade and non-rated bonds had a positive impact as these segments benefited from the ongoing contraction in credit spreads. Also contributing positively to results were the Fund’s concentrations in the strong-performing health, transportation and corporate sectors. Finally, the Fund’s holdings generated an above-average distribution yield, which in the aggregate, had a meaningful impact on returns.

 

Ÿ  

Conversely, the Fund held low exposure to the tobacco sector, which was the strongest-performing sector for the period. A greater commitment to this segment would have benefited the Fund’s 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 April 30, 2013 ($18.20)1

   6.03%

Tax Equivalent Yield2

   10.65%

Current Monthly Distribution per Common Share3

   $0.0915

Current Annualized Distribution per Common Share3

   $1.0980

Economic Leverage as of April 30, 20134

   37%

 

  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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

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

 

  4   

Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP 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 5.

 

                
10    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
     BlackRock MuniHoldings Fund, Inc.

 

Market Price and Net Asset Value      

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

 

        4/30/13        4/30/12        Change      High        Low  

Market Price

     $ 18.20         $ 18.08           0.66    $ 19.99         $ 17.17   

Net Asset Value

     $ 18.12         $ 17.36           4.38    $ 18.88         $ 17.36   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Fund’s long-term investments:

Sector Allocation         
      4/30/13     4/30/12  

Transportation

     22     18

Health

     21        21   

State

     13        13   

County/City/Special District/School District

     13        12   

Utilities

     12        13   

Education

     9        10   

Corporate

     7        8   

Housing

     2        2   

Tobacco

     1        3   

 

Credit Quality Allocation1  
      4/30/13     4/30/12  

AAA/Aaa

     9     8

AA/Aa

     42        37   

A

     29        23   

BBB/Baa

     9        15   

BB/Ba

     1        1   

B

     3        5   

CCC/Caa

            1   

Not Rated2

     7        10   

 

  1   

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

 

  2   

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012, the market value of these securities was $7,320,539, representing 2%, and $24,953,999, representing 7%, respectively, of the Fund’s long-term investments.

 

Call/Maturity Schedule3      

Calendar Year Ended December 31,

  

2013

     7

2014

     4   

2015

     3   

2016

     3   

2017

     5   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

                
   ANNUAL REPORT    APRIL 30, 2013    11


Table of Contents
Fund Summary as of April 30, 2013    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      
Ÿ  

For the 12-month period ended April 30, 2013, the Fund returned 9.25% based on market price and 11.99% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 8.05% based on market price and 10.61% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount 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.

 

Ÿ  

During the period, the Fund benefited from its overall long duration bias (greater sensitivity to interest rates) and preference for longer-dated bonds as interest rates declined (bond prices rise when interest rates fall) and the yield curve flattened (long-term rates fell more than short- and intermediate-term rates). The Fund’s allocations to lower-quality investment grade, non-investment grade and non-rated bonds had a positive impact as these segments benefited from the ongoing contraction in credit spreads. Also contributing positively to results were the Fund’s concentrations in the strong-performing health, transportation and corporate sectors. Finally, the Fund’s holdings generated an above-average distribution yield, which in the aggregate, had a meaningful impact on returns.

 

Ÿ  

Conversely, the Fund held low exposure to the tobacco sector, which was the strongest-performing sector for the period. A greater commitment to this segment would have benefited the Fund’s 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 April 30, 2013 ($16.75)1

   5.95%

Tax Equivalent Yield2

   10.51%

Current Monthly Distribution per Common Share3

   $0.083

Current Annualized Distribution per Common Share3

   $0.996

Economic Leverage as of April 30, 20134

   37%

 

  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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

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

 

  4   

Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP 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 5.

 

                
12    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
     BlackRock MuniHoldings Fund II, Inc.

 

 

Market Price and Net Asset Value      

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

 

        4/30/13        4/30/12        Change      High        Low  

Market Price

     $ 16.75         $ 16.46           1.76    $ 18.52         $ 16.14   

Net Asset Value

     $ 16.93         $ 16.23           4.31    $ 17.60         $ 16.23   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Fund’s long-term investments:

 

Sector Allocation         
      4/30/13     4/30/12  

Transportation

     21     18

Health

     20        21   

County/City/Special District/School District

     17        16   

State

     15        14   

Utilities

     10        11   

Education

     8        10   

Corporate

     7        7   

Housing

     1        1   

Tobacco

     1        2   

 

Credit Quality Allocation1  
      4/30/13     4/30/12  

AAA/Aaa

     9     12

AA/Aa

     48        45   

A

     26        24   

BBB/Baa

     8        9   

B

     2        2   

CCC/Caa

     1        1   

Not Rated2

     6        7   

 

  1   

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

 

  2   

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012, the market value of these securities was $7,446,854, representing 2%, and $7,289,016, representing 3%, respectively, of the Fund’s long-term investments.

 

Call/Maturity Schedule3      

Calendar Year Ended December 31,

  

2013

     7

2014

     4   

2015

     3   

2016

     4   

2017

     6   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

                
   ANNUAL REPORT    APRIL 30, 2013    13


Table of Contents
Fund Summary as of April 30, 2013    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 long-term, investment grade 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      
Ÿ  

For the 12-month period ended April 30, 2013, the Fund returned 8.90% based on market price and 11.06% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 8.05% based on market price and 10.61% based on NAV. 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.

 

Ÿ  

The Fund’s longer-dated holdings contributed positively to performance as the municipal yield curve flattened (i.e., longer-term interest rates fell more than shorter rates) and bond prices moved higher on the long end of the curve. The Fund’s holdings in the health, education and transportation sectors enhanced results. Particularly strong returns came from the Fund’s lower-quality holdings in those sectors, which benefited from strong demand as investors sought higher-yielding assets in the low interest rate environment.

 

Ÿ  

The Fund’s lack of zero-coupon holdings was a disadvantage as zeros were the strongest-performing coupon segment during 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 April 30, 2013 ($14.92)1

   5.95%

Tax Equivalent Yield2

   10.51%

Current Monthly Distribution per Common Share3

   $0.074

Current Annualized Distribution per Common Share3

   $0.888

Economic Leverage as of April 30, 20134

   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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

The Monthly Distribution per Common Share, declared on June 3, 2013, was decreased to $0.0675 per share. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

 

  4   

Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP 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 5.

 

                
14    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
     BlackRock MuniHoldings Quality Fund, Inc.

 

Market Price and Net Asset Value      

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

 

        4/30/13        4/30/12        Change      High        Low  

Market Price

     $ 14.92         $ 14.52           2.75    $ 17.12         $ 14.14   

Net Asset Value

     $ 15.31         $ 14.61           4.79    $ 15.93         $ 14.61   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Fund’s long-term investments:

 

Sector Allocation         
     

4/30/13

    4/30/12  

County/City/Special District/School District

     27     28

Transportation

     26        22   

Utilities

     17        18   

State

     13        13   

Health

     9        9   

Education

     6        7   

Housing

     1        2   

Tobacco

     1        1   

 

Credit Quality Allocation1  
     

4/30/13

    4/30/12  

AAA/Aaa

     11     12

AA/Aa

     55        65   

A

     32        21   

BBB/Baa

     2        1   

B

            1   

 

  1   

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

 

Call/Maturity Schedule2      

Calendar Year Ended December 31,

  

2013

       

2014

     4

2015

     4   

2016

     3   

2017

       

 

  2   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

                
   ANNUAL REPORT    APRIL 30, 2013    15


Table of Contents
Fund Summary as of April 30, 2013    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      
Ÿ  

For the 12-month period ended April 30, 3013, the Fund returned 4.09% based on market price and 8.78% based on NAV. For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 3.82% based on market price and 7.33% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount 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.

 

Ÿ  

The Fund benefited from its overall long duration bias (greater sensitivity to interest rates) and positioning in longer-dated maturities within the Fund’s intermediate duration mandate, with its heaviest concentrations in the 10- and 7-year duration buckets. These factors accounted for the majority of the Fund’s positive return as the municipal market rallied over the period and the yield curve flattened (long-term rates fell more than short and intermediate rates). Also contributing positively to results were the Fund’s large allocations to the strong—performing corporate and health sectors, as well as its heavy exposures to California, Florida and Illinois credits, which were among the top-performing states. Additionally, the tightening of credit spreads during the period bode particularly well for the Fund as it maintained a preference for lower-quality investment grade holdings.

 

Ÿ  

Although the Fund held only a small allocation to Puerto Rico and pre-refunded credits, these exposures represent an opportunity cost as these issues underperformed the broader market and the Fund would have been better served with the assets deployed elsewhere. Conversely, the Fund held low exposure to the tobacco sector, which was the strongest-performing sector for the period. A greater commitment to that sector would have benefited the Fund’s 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

   MUI

Initial Offering Date

   August 1, 2003

Yield on Closing Market Price as of April 30, 2013 ($16.12)1

   5.32%

Tax Equivalent Yield2

   9.40%

Current Monthly Distribution per Common Share3

   $0.0715

Current Annualized Distribution per Common Share3

   $0.8580

Economic Leverage as of April 30, 20134

   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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  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 5.

 

                
16    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
     BlackRock Muni Intermediate Duration Fund, Inc.

 

Market Price and Net Asset Value      

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

 

       

4/30/13

       4/30/12        Change      High        Low  

Market Price

     $ 16.12         $ 16.45           (2.01 )%     $ 17.88         $ 15.14   

Net Asset Value

     $ 16.60         $ 16.21           2.41    $ 17.19         $ 16.18   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Fund’s long-term investments:

 

Sector Allocation               
     

4/30/13

    4/30/12  

County/City/Special District/School District

     26     23

State

     18        20   

Transportation

     13        9   

Health

     12        15   

Education

     10        10   

Utilities

     8        9   

Corporate

     8        8   

Tobacco

     3        3   

Housing

     2        3   

 

Credit Quality Allocation1               
     

4/30/13

    4/30/12  

AAA/Aaa

     4     11

AA/Aa

     53        49   

A

     29        25   

BBB/Baa

     6        6   

BB/Ba

     1        1   

B

     2        2   

Not Rated2

     5        6   

 

1   

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

 

2   

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012, the market value of these securities was $8,944,363 and $12,831,333, each representing 1%, respectively, of the Fund’s long-term investment.

 

Call/Maturity Schedule3      

Calendar Year Ended December 31,

  

2013

     5

2014

     5   

2015

     6   

2016

     6   

2017

     7   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

                
   ANNUAL REPORT    APRIL 30, 2013    17


Table of Contents
Fund Summary as of April 30, 2013    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      
Ÿ  

For the 12-month period ended April 30, 2013, the Fund returned 10.28% based on market price and 11.95% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 8.05% based on market price and 10.61% based on NAV. All returns reflect reinvestment of dividends. The Fund’s premium 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.

 

Ÿ  

During the period, the Fund benefited from its overall long duration bias (greater sensitivity to interest rates) and preference for longer-dated bonds as interest rates declined (bond prices rise when interest rates fall) and the yield curve flattened (long-term rates fell more than short- and intermediate-term rates). The Fund’s allocations to lower-quality investment grade, non-investment grade and non-rated bonds had a positive impact as these segments benefited from the ongoing contraction in credit spreads. Also contributing positively to results were the Fund’s concentrations in the strong-performing health, transportation and corporate sectors. Finally, the Fund’s holdings generated an above-average distribution yield, which in the aggregate, had a meaningful impact on returns.

 

Ÿ  

Conversely, the Fund held low exposure to the tobacco sector, which was the strongest-performing sector for the period. A greater commitment to this segment would have benefited the Fund’s 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 April 30, 2013 ($17.31)1

   6.31%

Tax Equivalent Yield2

   11.15%

Current Monthly Distribution per Common Share3

   $0.091

Current Annualized Distribution per Common Share3

   $1.092

Economic Leverage as of April 30, 20134

   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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

  3   

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

 

  4   

Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP 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 5.

 

                
18    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
     BlackRock MuniVest Fund II, Inc.

 

Market Price and Net Asset Value      

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

 

        4/30/13        4/30/12        Change      High        Low  

Market Price

     $ 17.31         $ 16.75           3.34    $ 18.49         $ 16.48   

Net Asset Value

     $ 16.69         $ 15.91           4.90    $ 17.19         $ 15.91   

The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Fund’s long-term investments:

 

Sector Allocation               
      4/30/13     4/30/12  

Transportation

     22     19

Health

     20        21   

State

     15        15   

Utilities

     11        11   

County/City/Special District/School District

     11        10   

Corporate

     10        11   

Education

     7        7   

Tobacco

     2        3   

Housing

     2        3   

 

Credit Quality Allocation1               
      4/30/13     4/30/12  

AAA/Aaa

     9     9

AA/Aa

     46        47   

A

     25        24   

BBB/Baa

     10        9   

BB/Ba

     1        1   

B

     2        3   

Not Rated2

     7        7   

 

  1   

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

 

  2   

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2013 and April 30, 2012 the market value of these securities was $6,940,695 and $4,822,745, each representing 1%, respectively, of the Fund’s long-term investments.

Call/Maturity Schedule3      

Calendar Year Ended December 31,

  

2013

     7

2014

     2   

2015

     3   

2016

     3   

2017

     7   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

                
   ANNUAL REPORT    APRIL 30, 2013    19


Table of Contents

Schedule of Investments April 30, 2013

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 1.3%

    

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

   $ 2,165      $ 2,581,394   

County of Jefferson Alabama, RB, Series A:

    

5.25%, 1/01/17

     895        895,072   

5.25%, 1/01/19

     2,000        1,999,360   

5.50%, 1/01/21

     1,215        1,216,677   
    

 

 

 
               6,692,503   

Alaska — 1.3%

    

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

    

4.63%, 6/01/23

     1,720        1,725,900   

5.00%, 6/01/32

     1,500        1,396,890   

5.00%, 6/01/46

     4,000        3,563,400   
    

 

 

 
               6,686,190   

Arizona — 2.6%

    

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

       1,320        1,087,918   

Phoenix IDA Arizona, ERB, Great Hearts Academies—Veritas Project:

    

6.30%, 7/01/42

     500        534,335   

6.40%, 7/01/47

     425        455,868   

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

     5,750        5,770,987   

Pima County IDA Arizona, ERB, Arizona Charter School Project:

    

Series A, 6.75%, 7/01/31

     490        490,706   

Series E, 7.25%, 7/01/31

     2,255        2,259,983   

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

     235        235,994   

Tempe IDA Arizona, Refunding RB, Friendship Village of Tempe, Series A, 6.25%, 12/01/42

     720        785,052   

University Medical Center Corp. Arizona, RB:

    

6.25%, 7/01/29

     820        950,511   

6.50%, 7/01/39

     500        579,550   
    

 

 

 
               13,150,904   

California — 4.7%

    

California Pollution Control Financing Authority, RB:

    

Poseidon Resources (Channel Side) LP Desalination, AMT, 5.00%, 7/01/37

     1,065        1,099,730   

San Diego County Water Anthority Desalination Project, 5.00%, 11/21/45

     1,270        1,312,837   

California (concluded)

    

California Statewide Communities Development Authority, Refunding RB:

    

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

   $ 2,175      $ 2,469,321   

Eskaton Properties, Inc., 5.25%, 11/15/34

     1,595        1,708,676   

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

     2,320        2,369,903   

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

    

6.50%, 5/01/36

     900        1,102,527   

6.50%, 5/01/42

     2,220        2,703,871   

Foothill Eastern Transportation Corridor Agency California, Refunding RB, CAB, 6.05%, 1/15/33 (a)

     12,450        3,844,311   

San Marcos County Unified School District, GO, CAB, Series B (a):

    

4.78%, 8/01/40

     5,000        1,380,000   

5.03%, 8/01/51

     12,050        1,803,644   

Tobacco Securitization Authority of Southern California, Refunding RB, Senior Series A1, 5.00%, 6/01/37

     4,860        4,476,740   
    

 

 

 
               24,271,560   

Colorado — 1.2%

    

Plaza Metropolitan District No. 1 Colorado Tax Allocation Bonds, Public Improvement Fee, Tax Increment, 8.00%, 6/01/14 (b)

     4,850        5,293,193   

Plaza Metropolitan District No. 1 Colorado Tax Allocation Bonds, Refunding, Public Improvement Fee, Tax Increment, 5.00%, 12/01/40

     575        599,346   
    

 

 

 
               5,892,539   

Connecticut — 0.3%

    

Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, 6.25%, 1/01/31

     1,370        1,371,110   

Delaware — 1.0%

    

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40

     1,000        1,130,420   

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

     3,625        3,888,973   
    

 

 

 
               5,019,393   

District of Columbia — 0.9%

    

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

    

7.38%, 1/01/30

     1,665        1,689,359   

7.50%, 1/01/39

     1,615        1,636,673   
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.    HRB    Housing Revenue Bonds
     AGC    Assured Guaranty Corp.    IDA    Industrial Development Authority
     AGM    Assured Guaranty Municipal Corp.    IDB    Industrial Development Board
     AMBAC    American Municipal Bond Assurance Corp.    ISD    Independent School District
     AMT    Alternative Minimum Tax (subject to)    LRB    Lease Revenue Bonds
     ARB    Airport Revenue Bonds    M/F    Multi-Family
     BHAC    Berkshire Hathaway Assurance Corp.    MRB    Mortgage Revenue Bonds
     CAB    Capital Appreciation Bonds    NPFGC    National Public Finance Guarantee Corp.
     COP    Certificates of Participation    PSF-GTD    Permanent School Fund Guaranteed
     EDA    Economic Development Authority    Q-SBLF    Qualified School Bond Loan Fund
     EDC    Economic Development Corp.    Radian    Radian Financial Guaranty
     ERB    Education Revenue Bonds    RB    Revenue Bonds
     FSA    Financial Security Assurance, Inc.    SBPA    Stand-by Bond Purchase Agreements
     GARB    General Airport Revenue Bonds    S/F    Single-Family
     GO    General Obligation Bonds    Syncora    Syncora Guarantee
     HDA    Housing Development Authority    VRDN    Variable Rate Demand Notes
     HFA    Housing Finance Agency      

 

See Notes to Financial Statements.

 

                
20    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

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)

    

District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.50%, 5/15/33

   $ 1,055      $ 1,257,128   
    

 

 

 
               4,583,160   

Florida — 11.4%

    

Boggy Creek Improvement District, Refunding RB, Special Assessment Bonds, 5.13%, 5/01/43 (c)

     4,165        4,099,151   

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

     4,500        4,533,435   

Greeneway Improvement District, RB, Special Assessment Bonds, 5.13%, 5/01/43 (c)

     4,165        4,099,151   

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

     455        456,520   

Hillsborough County IDA, RB, National Gypsum Co., AMT:

    

Series A, 7.13%, 4/01/30

     3,000        3,009,480   

Series B, 7.13%, 4/01/30

     1,560        1,560,811   

Jacksonville Economic Development Commission, RB, Gerdau Ameristeel US, Inc., AMT, 5.30%, 5/01/37

     4,500        4,509,270   

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

     1,095        1,242,365   

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

     1,485        1,716,497   

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

     4,550        5,803,889   

Midtown Miami Community Development District, Special Assessment Bonds, Series A:

    

6.00%, 5/01/24

     1,165        1,180,238   

6.25%, 5/01/37

     4,605        4,676,377   

Palm Beach County Health Facilities Authority, RB, Acts Retirement Life Community, 5.50%, 11/15/33

     3,500        3,841,215   

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

     4,917        1,966,610   

Sarasota County Health Facilities Authority, Refunding RB, Village On The Isle Project, 5.50%, 1/01/27

     955        1,026,348   

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

     3,825        3,604,909   

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

     1,305        1,306,710   

Tolomato Community Development District, Refunding, Special Assessment Bonds:

    

CAB, 6.67%, 5/01/17 (f)

     250        190,938   

CAB, 7.08%, 5/01/19 (f)

     585        365,625   

CAB, 7.56%, 5/01/22 (f)

     305        141,825   

Series A-1, 6.65%, 5/01/40

     910        933,906   

Tolomato Community Development District, Special Assessment Bonds (d)(e):

    

Series 1, 6.65%, 5/01/40

     70        37,813   

Series 2, 6.65%, 5/01/40

     2,110        845,329   

Series 3, 6.65%, 5/01/40

     710        7   

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

    

6.75%, 5/01/31

     1,880        2,176,683   

7.00%, 5/01/41

     3,025        3,521,886   

5.50%, 5/01/42

     1,365        1,475,524   
    

 

 

 
               58,322,512   

Georgia — 2.4%

    

City of Atlanta Georgia, Tax Allocation Bonds, Princeton Lakes Project, 5.50%, 1/01/31

   $ 1,035      $ 1,053,133   

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

     3,365        4,264,094   

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

     2,765        2,880,107   

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

     1,000        1,172,020   

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

    

6.38%, 11/15/29

     700        805,266   

6.63%, 11/15/39

     880        1,010,698   

Private Colleges & Universities Authority, Refunding RB, Mercer University Project, Series A, 5.00%, 10/01/32

     855        937,995   
    

 

 

 
               12,123,313   

Guam — 0.6%

    

Guam Government Waterworks Authority, Refunding RB, Water & Wastewater Systems, 6.00%, 7/01/25

     1,265        1,318,332   

Territory of Guam, GO, Series A:

    

6.00%, 11/15/19

     615        680,325   

7.00%, 11/15/39

     1,115        1,266,016   
    

 

 

 
               3,264,673   

Illinois — 5.5%

    

City of Chicago Illinois, Refunding RB, American Airlines, Inc. Project, 5.50%, 12/01/30 (d)(e)

     7,000        7,717,500   

Illinois Finance Authority, Refunding RB:

    

CAB, Clare Water Tower, Series B,
0.00%, 5/15/50 (a)(d)(e)

     1,214        12   

Clare Water Tower, Series A-7, 6.13%, 5/15/41 (d)(e)

     3,129        31   

Friendship Village Of Schaumburg, 7.25%, 2/15/45

     4,000        4,479,520   

Lutheran Home & Services Obligated Group, 5.63%, 5/15/42

     2,395        2,510,750   

Primary Health Care Centers Program, 6.60%, 7/01/24

     1,175        1,191,368   

Roosevelt University Project, 6.50%, 4/01/44

     4,170        4,752,382   

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 4.97%, 6/15/46 (a)

     9,860        1,939,265   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     1,400        1,711,108   

6.00%, 6/01/28

     710        867,045   

Village of Lincolnshire Illinois, Special Tax Bonds, Sedgebrook Project, 6.25%, 3/01/34

     1,800        1,855,044   

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

     1,465        1,474,083   
    

 

 

 
               28,498,108   

Indiana — 0.4%

    

Indiana Finance Authority, RB, Private Activity Bonds, Ohio River Bridges East End Crossing Project, Series A:

    

5.00%, 7/01/44

     470        498,835   

5.00%, 7/01/48

     1,555        1,630,744   
    

 

 

 
               2,129,579   

Iowa — 0.7%

    

Iowa Finance Authority, Refunding RB, Sunrise Retirement Community Project:

    

5.50%, 9/01/37

     1,355        1,355,867   

5.75%, 9/01/43

     2,115        2,137,631   
    

 

 

 
               3,493,498   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    21


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Louisiana — 1.5%

    

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

   $ 5,000      $ 5,714,050   

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

     1,855        2,191,664   
    

 

 

 
               7,905,714   

Maine — 0.7%

    

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

     2,955        3,575,964   

Maryland — 2.6%

    

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

     3,615        4,122,654   

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

     4,785        5,343,170   

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

     1,000        350,020   

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

     3,110        3,491,442   
    

 

 

 
               13,307,286   

Massachusetts — 0.6%

    

Massachusetts Development Finance Agency, RB, Foxborough Regional Charter School, Series A, 7.00%, 7/01/42

     1,025        1,212,852   

Massachusetts Development Finance Agency, Refunding RB:

    

Eastern Nazarene College, 5.63%, 4/01/19

     30        30,091   

Eastern Nazarene College, 5.63%, 4/01/29

     80        80,249   

Tufts Medical Center, Series I, 6.75%, 1/01/36

     1,490        1,810,931   
    

 

 

 
               3,134,123   

Michigan — 2.3%

    

City of Detroit Michigan, GO, Limited Tax:

    

Series A-1, 5.00%, 4/01/16

     650        595,198   

Series A-2, 8.00%, 4/01/14

     3,185        3,062,282   

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

     6,310        8,084,183   
    

 

 

 
               11,741,663   

Minnesota — 0.4%

    

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

     1,785        2,170,399   

Missouri — 0.5%

    

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

     2,315        2,772,861   

New Jersey — 5.1%

    

New Jersey EDA, RB:

    

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

     1,250        1,287,475   

Kapkowski Road Landfill Project, Series 1998B-MB, AMT, 6.50%, 4/01/31

     2,250        2,668,815   

Patterson Charter School for Science and Technology, Inc. Project, Series A, 6.10%, 7/01/44

     1,085        1,193,619   

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

     4,000        4,019,760   

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

    

7.13%, 12/01/23

     670        857,969   

7.50%, 12/01/32

     3,575        4,447,943   

New Jersey (concluded)

    

New Jersey Health Care Facilities Financing Authority, Refunding RB:

    

Barnabas Health, Series A, 5.63%, 7/01/37

   $ 2,650      $ 2,988,750   

St. Joseph’s Healthcare System, 6.63%, 7/01/38

     4,090        4,716,506   

New Jersey Transportation Trust Fund Authority, RB, CAB, Transportation System, Series C (AMBAC), 4.63%, 12/15/35 (a)

     6,210        2,204,612   

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1-A, 4.63%, 6/01/26

     2,000        1,939,920   
    

 

 

 
               26,325,369   

New Mexico — 0.6%

    

New Mexico Hospital Equipment Loan Council, Refunding RB, Gerald Champion Regional Medical Center Project, 5.50%, 7/01/42

     2,970        3,065,812   

New York — 4.9%

    

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

     3,695        4,135,961   

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

     1,000        1,023,140   

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

     1,400        1,432,396   

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

     2,000        2,506,400   

New York City Industrial Development Agency, RB:

    

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

     1,765        2,041,117   

British Airways Plc Project, AMT, 7.63%, 12/01/32

     4,130        4,212,518   

Series C, 6.80%, 6/01/28

     860        871,171   

Special Needs Facilities Pooled Program, Series C-1, 6.50%, 7/01/24

     610        615,179   

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

     1,100        1,104,015   

New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

     1,270        1,518,399   

Niagara Area Development Corp., Refunding RB, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42

     1,835        1,906,822   

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

     1,340        1,573,160   

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

     2,090        2,364,333   
    

 

 

 
               25,304,611   

North Carolina — 1.5%

    

North Carolina Medical Care Commission, Refunding RB, First Mortgage, Series A:

    

Deerfield, 6.13%, 11/01/38

     4,565        5,011,548   

Whitestone, 7.75%, 3/01/31

     1,000        1,156,380   

Whitestone, 7.75%, 3/01/41

     1,420        1,626,866   
    

 

 

 
               7,794,794   

Ohio — 2.9%

    

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Series A-2:

    

5.13%, 6/01/24

     1,350        1,249,087   

5.75%, 6/01/34

     6,745        5,889,262   

6.00%, 6/01/42

     3,040        2,743,874   

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

     4,880        5,064,464   
    

 

 

 
               14,946,687   

 

See Notes to Financial Statements.

 

                
22    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Oklahoma — 0.3%

    

Oklahoma Development Finance Authority, Refunding RB, Inverness Village Community, 6.00%, 1/01/32

   $ 1,305      $ 1,426,509   

Pennsylvania — 6.2%

    

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:

    

5.00%, 5/01/35

     1,815        1,955,354   

5.00%, 5/01/42

     4,170        4,453,393   

Bucks County IDA, RB, Ann’s Choice, Inc. Facility, Series A:

    

6.13%, 1/01/25

     1,360        1,377,109   

6.25%, 1/01/35

     1,550        1,569,483   

Cumberland County Municipal Authority, Refunding RB, Diakon Lutheran, 6.38%, 1/01/39

     6,165        6,917,377   

Lancaster County Hospital Authority, Refunding RB, Brethren Village Project, Series A, 6.25%, 7/01/26

     1,160        1,243,590   

Lehigh County General Purpose Authority, Refunding RB, Bible Fellowship Church Homes, 5.13%, 7/01/32

     2,905        2,905,319   

Montgomery County IDA Pennsylvania, MRB, Whitemarsh Continuing Care, 6.13%, 2/01/28

     2,330        2,372,662   

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

     1,250        1,249,925   

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

     8,000        8,012,320   
    

 

 

 
               32,056,532   

Puerto Rico — 1.5%

    

Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series U, 5.25%, 7/01/42

     3,790        3,706,658   

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

     2,650        3,005,259   

Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, First Sub-Series C, 5.84%, 8/01/38 (a)

     4,445        1,038,885   
    

 

 

 
               7,750,802   

Rhode Island — 0.7%

    

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

     4,245        3,678,675   

Tennessee — 0.1%

    

Shelby County Health Educational & Housing Facilities Board Tennessee, RB, Village at Germantown, 6.25%, 12/01/16 (b)

     575        657,265   

Texas — 13.6%

    

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

     5,040        5,721,509   

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

     5,080        431,800   

Central Texas Regional Mobility Authority, Refunding RB:

    

Senior Lien, 5.75%, 1/01/25

     675        800,766   

Senior Lien, 6.25%, 1/01/46

     2,210        2,610,673   

Senior Lien, Series A, 5.00%, 1/01/33 (c)

     105        115,736   

Senior Lien, Series A, 5.00%, 1/01/43 (c)

     195        210,499   

Subordinate Lien, Sub-Lien, 5.00%, 1/01/33 (c)

     375        397,699   

Subordinate Lien, Sub-Lien, 5.00%, 1/01/42 (c)

     330        343,325   

Central Texas Regional Mobility Authority, Refunding RB, CAB (a):

    

4.71%, 1/01/28

     1,000        505,140   

4.77%, 1/01/29

     2,000        954,860   

4.89%, 1/01/30

     1,170        522,627   

4.99%, 1/01/31

     2,000        837,760   

5.09%, 1/01/32

     3,500        1,368,850   

5.21%, 1/01/33

     3,690        1,341,758   

5.25%, 1/01/34

     4,000        1,370,480   

Texas (concluded)

    

City of Houston Texas, RB, Special Facilities, Continental Airlines, Inc., AMT:

    

Series E, 6.75%, 7/01/21

   $ 4,550      $ 4,566,926   

Terminal Improvement Projects, 6.63%, 7/15/38

     2,890        3,265,006   

Clifton Higher Education Finance Corp., ERB, Idea Public Schools:

    

5.50%, 8/01/31

     955        1,078,185   

5.75%, 8/01/41

     720        817,913   

Clifton Higher Education Finance Corp., Refunding RB, Uplift Education, Series A, 4.40%, 12/01/47

     810        813,119   

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

    

7.13%, 12/01/18

     1,500        1,991,265   

7.25%, 12/01/18

     1,110        1,484,603   

Harris County-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series A (NPFGC), 5.46%, 11/15/38 (a)

     10,000        2,528,400   

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

     595        753,776   

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

     860        1,005,366   

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

     1,500        1,634,085   

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

     2,090        2,465,009   

North Texas Education Finance Corp., ERB, Uplift Education, Series A:

    

5.13%, 12/01/42

     745        800,659   

5.25%, 12/01/47

     1,600        1,728,256   

North Texas Tollway Authority, RB, CAB, Special Projects System, Series B, 5.06%, 9/01/37 (a)

     2,110        625,678   

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

     4,425        4,886,085   

Red River Health Facilities Development Corp., First MRB:

    

Eden Home, Inc. Project, 7.25%, 12/15/42

     2,895        3,077,993   

Wichita Falls Retirement Foundation Project, 5.13%, 1/01/41

     900        905,724   

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

    

CC Young Memorial Home, 8.00%, 2/15/38

     1,745        2,003,085   

Senior Living Center Project, 8.25%, 11/15/44

     4,200        4,800,012   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, Gas Supply, 5.00%, 12/15/29

     1,945        2,107,310   

Texas 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        5,451,316   

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

     3,000        3,607,080   
    

 

 

 
               69,930,333   

Vermont — 0.2%

    

Vermont EDA, Refunding MRB, Wake Robin Corp. Project, Series A, 5.40%, 5/01/33

     770        816,970   

Virginia — 3.5%

    

Fairfax County EDA, Refunding RB:

    

Goodwin House, Inc., 5.13%, 10/01/42

     2,500        2,644,975   

Vinson Hall LLC, Series A, 5.00%, 12/01/42

     1,330        1,358,475   

Vinson Hall LLC, Series A, 5.00%, 12/01/47

     1,735        1,764,911   

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

     40        41,020   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    23


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Virginia (concluded)

    

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

    

6.63%, 3/01/26

   $ 1,485      $ 1,725,392   

6.88%, 3/01/36

     1,300        1,507,467   

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossing Project, AMT:

    

5.25%, 1/01/32

     810        890,951   

6.00%, 1/01/37

     5,705        6,568,052   

5.50%, 1/01/42

     1,175        1,278,988   
    

 

 

 
               17,780,231   

Washington — 0.6%

    

Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A, 5.50%, 9/01/42

     1,495        1,597,856   

King County, Washington Public Hospital District No. 4, GO, Refunding, Snoqualmie Valley Hospital, 7.00%, 12/01/40

     1,455        1,596,411   
    

 

 

 
               3,194,267   

Wisconsin — 0.3%

    

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

    

7.25%, 9/15/29

     425        487,615   

7.63%, 9/15/39

     855        989,030   
    

 

 

 
               1,476,645   
Total Municipal Bonds – 84.9%              436,312,554   
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (h)
                

Colorado — 2.4%

    

Colorado Health Facilities Authority, Refunding RB, Sisters of Leavenworth, Series A, 5.00%, 1/01/40

     11,475        12,526,110   

District of Columbia — 1.6%

    

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

     6,679        8,064,991   

Florida — 3.3%

    

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

     15,000        16,967,250   

Illinois — 3.0%

    

City of Chicago Illinois, RB, General Airport, Third Lien, Series A (NPFGC), 5.00%, 1/01/33

     6,510        7,004,435   

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

     7,180        8,473,046   
    

 

 

 
               15,477,481   

Michigan — 0.9%

    

Detroit Water and Sewerage Department, Refunding RB, Senior Lien, Series A:

    

5.00%, 7/01/32

     $  1,613      $ 1,761,057   

5.25%, 7/01/39

     2,786        3,040,123   
    

 

 

 
               4,801,180   

New York — 14.3%

    

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

     4,520        5,365,898   

New York City Municipal Water Finance Authority, Refunding RB, Water & Sewer System, Second General Resolution:

    

Series CC, 5.00%, 6/15/47

     14,180        16,211,710   

Series EE, 5.50%, 6/15/43

     7,605        9,050,787   

Series HH, 5.00%, 6/15/31 (i)

     8,609        9,996,827   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43

     18,105        20,793,671   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51

     6,600        7,827,336   

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

     4,004        4,287,207   
    

 

 

 
               73,533,436   

Washington — 1.8%

    

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

     7,966        9,060,686   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 27.3%
        140,431,134   

Total Long-Term Investments

(Cost — $529,804,768) — 112.2%

  

  

    576,743,688   
    
   
Short-Term Securities    Shares         

Money Market Funds — 1.8%

    

FFI Institutional Tax-Exempt Fund, 0.03% (j)(k)

     9,209,652        9,209,652   

Total Short-Term Securities

(Cost — $9,209,652) — 1.8%

             9,209,652   
Total Investments (Cost — $539,014,420) — 114.0%        585,953,340   
Other Assets Less Liabilities — 0.9%        4,462,556   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (14.9)%

   

    (76,492,942
    

 

 

 
Net Assets — 100.0%      $ 513,922,954   
    

 

 

 

 

Notes to Schedule of Investments

 

(a)   Represents a zero-coupon bond. Rate shown reflects the current yield 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)   When-issued security. Unsettled when-issued transactions were as follows:

 

Counterparty   Value       

Unrealized

Appreciation

 

Citigroup, Inc.

  $ 8,198,302         $ 24,740   

JPMorgan Chase & Co.

  $ 1,067,259         $ 17,223   

 

(d)   Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.

 

See Notes to Financial Statements.

 

                
24    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

 

(e)   Non-income producing security.

 

(f)   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 reflects the current yield as of report date.

 

(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)   All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from October 1, 2016 to June 15, 2019, is $11,174,587.

 

(j)   Investments in issuers considered to be an affiliate of the Fund during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliate   Shares Held
at April 30,
2012
       Net
Activity
       Shares Held
at April 30,
2013
       Income  

FFI Institutional Tax-Exempt Fund

    3,404,970           5,804,682           9,209,652         $ 460   

 

(k)   Represents the current yield as of report date.

 

Ÿ  

Financial futures contracts as of April 30, 2013 were as follows:

 

Contracts Sold     Issue   Exchange   Expiration   Notional
Value
    Unrealized
Depreciation
 
  (184   10-Year US Treasury Note   Chicago Board of Trade   June 2013   $ 24,538,125      $ (430,054

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access

 

Ÿ  

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)

 

Ÿ  

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. 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 is not necessarily an indication of the risks associated with 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 Note 1 of the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 576,743,688              $ 576,743,688   

Short-Term Securities

  $ 9,209,652                          9,209,652   
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 9,209,652         $ 576,743,688              $ 585,953,340   
 

 

 

      

 

 

      

 

    

 

 

 

 

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

     

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments2             

Liabilities:

                

Interest rate contracts

  $ (430,054                     $ (430,054

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

      

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    25


Table of Contents

Schedule of Investments (concluded)

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                

Cash pledged for financial futures contracts

  $ 242,000                             $ 242,000   

Liabilities:

                

TOB trust certificates

            $ (76,451,238                  (76,451,238
 

 

 

      

 

 

      

 

 

      

 

 

 

Total

  $   242,000         $ (76,451,238                $ (76,209,238
 

 

 

      

 

 

      

 

 

      

 

 

 

There were no transfers between levels during the year ended April 30, 2013.

 

See Notes to Financial Statements.

 

                
26    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments April 30, 2013

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Alabama — 1.5%

    

City of Birmingham Alabama, GO, Convertible CAB, Series A, 3.99%, 3/01/17 (a)

   $ 710      $ 644,474   

County of Jefferson Alabama, RB, Series A:

    

5.50%, 1/01/22

     2,750        2,753,795   

4.75%, 1/01/25

     2,200        2,100,142   
    

 

 

 
               5,498,411   

Alaska — 1.2%

    

Alaska Housing Finance Corp., RB, General Housing, Series B (NPFGC), 5.25%, 12/01/30

     400        415,668   

Alaska Housing Finance Corp., Refunding RB, Series A, 4.13%, 12/01/37

     1,265        1,308,503   

Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41

     990        1,156,865   

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

     1,200        1,488,312   
    

 

 

 
               4,369,348   

Arizona — 1.5%

    

Greater Arizona Development Authority, RB, Series B (NPFGC), 5.00%, 8/01/35

     1,300        1,390,311   

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

    

5.00%, 10/01/27

     3,250        3,699,085   

5.00%, 10/01/29

     400        452,372   
    

 

 

 
               5,541,768   

California — 22.4%

    

Alameda Corridor Transportation Authority, Refunding RB, CAB, Subordinate Lien, Series A (AMBAC):

    

5.40%, 10/01/24

     10,185        11,414,431   

5.45%, 10/01/25

     3,700        4,134,195   

Anaheim Public Financing Authority California, RB, Senior, Public Improvements Project, Series A (AGM), 6.00%, 9/01/24

     5,000        6,213,050   

Cabrillo Community College District, GO, CAB, Election of 2004, Series B (NPFGC), 4.89%, 8/01/37 (b)

     2,400        742,992   

California Health Facilities Financing Authority, RB:

    

St. Joseph Health System, Series A, 5.75%, 7/01/39

     550        648,489   

Sutter Health, Series A, 5.00%, 8/15/52

     1,420        1,548,766   

Sutter Health, Series B, 5.88%, 8/15/31

     1,200        1,465,152   

California State Public Works Board, LRB, Various Judicial Council Projects, Series A, 5.00%, 3/01/38

     710        782,406   

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

     2,000        2,229,460   

California Statewide Communities Development Authority, RB, Series A, 5.00%, 4/01/42

     1,480        1,642,800   

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

     1,420        1,603,634   

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

     850        981,300   

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

     1,300        1,464,528   

Los Angeles Department of Water & Power, RB,
Series C (NPFGC), 5.00%, 7/01/14

     5,160        5,411,395   

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

    

5.00%, 10/01/29

     2,570        2,621,683   

5.00%, 10/01/36

     1,480        1,509,763   

Orange County Sanitation District, COP:

    

(NPFGC), 5.00%, 8/01/13 (c)

     6,455        6,530,846   

Series B (AGM), 5.00%, 2/01/30

     1,500        1,671,165   

Series B (AGM), 5.00%, 2/01/31

     900        1,000,971   
Municipal Bonds    Par  
(000)
    Value  

California (concluded)

    

Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement Election of 2007, 4.69%, 8/01/36 (b)

   $ 3,750      $ 1,276,087   

Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C, 4.62%, 8/01/38 (b)

     5,000        1,577,200   

San Diego Unified School District California, GO, CAB, Election of 2008, Series C, 4.54%, 7/01/38 (b)

     1,600        516,800   

San Diego Unified School District California, GO, Refunding, CAB, Series R-1 (b):

    

4.22%, 7/01/30

     5,000        2,441,050   

4.35%, 7/01/31

     1,280        585,651   

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

     2,175        2,687,430   

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

    

5.00%, 8/01/34

     700        793,982   

5.00%, 8/01/38

     600        675,444   

San Mateo County Community College District, GO, CAB, Election of 2001, Series C (NPFGC), 3.70%, 9/01/30 (b)

     12,740        6,747,486   

State of California, GO, Various Purpose, 5.00%, 4/01/42

     1,000        1,117,290   

State of California, GO, Refunding:

    

5.00%, 2/01/38

     2,500        2,800,500   

Various Purpose, 5.00%, 10/01/41

     1,000        1,112,400   

Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B, 4.67%, 8/01/36 (b)

     5,500        1,881,385   

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

     5,035        5,701,634   
    

 

 

 
               83,531,365   

Colorado — 0.6%

    

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

     2,000        2,274,460   

District of Columbia — 1.5%

    

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

     5,480        5,667,416   

Florida — 9.8%

    

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

     850        978,699   

City of Jacksonville Transportation, Refunding RB, Series A, 5.00%, 10/01/30

     280        326,399   

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

     3,000        3,317,190   

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

     2,625        2,922,885   

County of Lee Florida, Refunding ARB, Series A, AMT:

    

5.63%, 10/01/26

     960        1,124,314   

5.38%, 10/01/32

     3,160        3,524,064   

County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 5.75%, 7/01/33

     1,400        1,631,882   

County of Miami-Dade Florida, Refunding RB:

    

Miami International Airport, AMT (AGC), 5.00%, 10/01/40

     9,900        10,691,307   

Series B, 5.00%, 10/01/37

     710        792,999   

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

    

5.13%, 6/01/27

     2,000        2,332,780   

5.38%, 10/01/29

     1,050        1,235,125   

Highlands County Health Facilities Authority, RB, Adventist Health System/Sunbelt, Series B, 6.00%, 11/15/37

     1,450        1,733,228   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    27


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Florida (concluded)

    

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

   $ 4,050      $ 4,598,167   

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

     275        304,425   

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

     1,000        1,133,570   
    

 

 

 
               36,647,034   

Georgia — 8.1%

    

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

     1,150        1,272,671   

City of Atlanta Georgia Department of Aviation, Refunding ARB, General, Series B (AGM), 5.25%, 1/01/33

     17,355        18,179,015   

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

     7,475        10,870,519   
    

 

 

 
               30,322,205   

Illinois — 18.5%

    

Chicago Illinois Board of Education, GO, Unlimited Tax, 5.50%, 12/01/39

     2,375        2,711,324   

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

     725        905,032   

Chicago Illinois Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/36

     595        682,554   

City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien:

    

Series A, 5.75%, 1/01/39

     5,110        6,004,914   

Series B-2, AMT (AGM), 5.75%, 1/01/23

     5,670        5,857,337   

Series B-2, AMT (Syncora), 6.00%, 1/01/29

     2,500        2,576,650   

City of Chicago Illinois, Board of Education, GO, Refunding, Series A (AGM), 5.50%, 12/01/31

     2,875        3,706,335   

City of Chicago Illinois, GO, Unlimited Tax, Harbor Facilities Revenues, Series C, 5.25%, 1/01/40

     550        627,319   

Cook County Forest Preserve District, GO, Series C, 5.00%, 12/15/37

     330        377,233   

Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37

     285        324,584   

Illinois Finance Authority, RB, Carle Foundation, Series A:

    

5.75%, 8/15/34

     650        771,927   

6.00%, 8/15/41

     1,000        1,199,230   

Illinois HDA, RB, Liberty Arms Senior Apartments, Series D, AMT (AMBAC), 4.88%, 7/01/47

     2,180        2,209,626   

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

     1,000        1,109,690   

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

     17,620        19,184,832   

Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38 (d)

     2,140        2,420,062   

Metropolitan Pier & Exposition Authority, RB, CAB, McCormick Place Expansion Project,
Series A (NPFGC) (b):

    

3.76%, 12/15/26

     5,000        3,010,050   

4.46%, 12/15/33

     9,950        4,006,069   

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project,
Series B (AGM), 4.95%, 6/15/44 (b)

     3,450        753,100   

Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28

     675        824,303   

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

     8,070        9,691,021   
    

 

 

 
               68,953,192   
Municipal Bonds    Par  
(000)
    Value  

Indiana — 1.6%

    

Indiana Finance Authority, RB:

    

First Lien, CWA Authority Project, Series A, 5.25%, 10/01/38

   $ 1,100      $ 1,282,028   

Private Activity, Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/40

     890        948,384   

Private Activity Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/44

     515        546,595   

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

     400        412,640   

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

    

5.25%, 1/01/29

     600        674,868   

5.50%, 1/01/38

     1,825        2,063,199   
    

 

 

 
               5,927,714   

Iowa — 4.1%

    

Iowa Finance Authority, RB, Series A (AGC), 5.63%, 8/15/37

     5,725        6,485,795   

Iowa Student Loan Liquidity Corp., RB, Series A-2, AMT:

    

5.60%, 12/01/26

     3,670        4,208,572   

5.70%, 12/01/27

     1,670        1,918,429   

5.80%, 12/01/29

     1,125        1,287,439   

5.85%, 12/01/30

     1,170        1,337,135   
    

 

 

 
               15,237,370   

Louisiana — 1.3%

    

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

     1,250        1,471,475   

Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A, 5.13%, 6/01/37

     3,150        3,340,764   
    

 

 

 
               4,812,239   

Maine — 0.1%

    

Maine State Housing Authority, Refunding RB, Series B-1, AMT, 4.00%, 11/15/27

     335        351,067   

Massachusetts — 1.3%

    

Massachusetts HFA, RB, S/F Housing, Series 128, AMT (AGM), 4.88%, 12/01/38 (e)

     475        489,701   

Massachusetts HFA, Refunding RB, AMT:

    

Rental Housing, Series A (AGM), 5.15%, 7/01/26

     185        185,581   

Series C, 5.35%, 12/01/42

     1,150        1,242,483   

Massachusetts Water Resources Authority, Refunding RB, General, Series A (NPFGC), 5.00%, 8/01/34

     2,700        3,080,889   
    

 

 

 
               4,998,654   

Michigan — 2.9%

    

City of Detroit Michigan, RB, Second Lien, Water Supply System (AGM), 6.25%, 7/01/36

     400        464,632   

City of Detroit Michigan, Refunding RB:

    

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

     500        619,475   

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

     2,500        2,865,525   

City of Detroit Michigan Water Supply System, RB, Water Supply System, Second Lien (AGM), 7.00%, 7/01/36

     200        240,990   

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

     1,700        2,011,236   

Michigan State Building Authority, Refunding RB, Facilities Program:

    

Series I-A, 5.38%, 10/15/36

     145        167,626   

Series I-A, 5.38%, 10/15/41

     700        805,875   

Series II-A (AGM), 5.25%, 10/15/36

     900        1,036,485   

Michigan State HDA, RB, Series C, AMT, 5.50%, 12/01/28

     1,040        1,128,712   

 

See Notes to Financial Statements.

 

                
28    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Michigan (concluded)

    

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

   $ 1,300      $ 1,310,686   
    

 

 

 
               10,651,242   

Minnesota — 0.8%

    

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

     2,500        3,061,250   

Mississippi — 0.2%

    

Medical Center Educational Building Corp., RB, University of Mississippi Medical Center Facilities, Expansion & Renovation Project, Series A, 5.00%, 6/01/41

     740        841,780   

Missouri — 0.3%

    

Missouri State Health & Educational Facilities Authority, Refunding, RB, Cox Health, Series A, 5.00%, 11/15/44

     1,000        1,093,410   

Nebraska — 0.2%

    

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37

     750        838,455   

Nevada — 3.0%

    

City of Carson City Nevada, RB, Carson-Tahoe Hospital Project, Series A (Radian), 5.50%, 9/01/13 (c)

     1,250        1,271,613   

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

     850        992,358   

County of Clark Nevada, ARB:

    

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

     3,800        4,286,248   

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

     1,000        1,040,880   

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

     3,200        3,331,200   

County of Clark Nevada, RB, Southwest Gas Corp. Project, Series A, AMT (NPFGC), 4.75%, 9/01/36

     75        78,056   
    

 

 

 
               11,000,355   

New Jersey — 6.3%

    

New Jersey EDA, RB:

    

Cigarette Tax (Radian), 5.50%, 6/15/14 (c)

     600        635,100   

Cigarette Tax (Radian), 5.75%, 6/15/14 (c)

     305        323,700   

Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/31

     3,125        3,275,625   

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

     7,800        8,175,960   

School Facilities Construction, Series Z (AGC), 6.00%, 12/15/18 (c)

     655        841,786   

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

     1,345        1,601,774   

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

    

5.50%, 12/01/26

     600        680,808   

5.75%, 12/01/27

     3,870        4,437,148   

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT, 4.35%, 11/01/33

     1,230        1,260,320   

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

     2,000        2,343,920   
    

 

 

 
               23,576,141   

New York — 5.1%

    

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

     1,500        1,740,030   

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

     700        831,075   
Municipal Bonds    Par  
(000)
    Value  

New York (concluded)

    

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

   $ 4,000      $ 5,012,800   

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

    

5.50%, 1/15/33

     1,600        1,869,600   

5.50%, 1/15/34

     2,750        3,213,375   

New York HFA, RB, Affordable Housing, Series B, 5.30%, 11/01/37

     2,500        2,643,425   

New York State Dormitory Authority, ERB, Series B, 5.75%, 3/15/36

     1,200        1,443,072   

New York State Thruway Authority, Refunding RB, Series I, 5.00%, 1/01/37

     2,095        2,363,223   
    

 

 

 
               19,116,600   

North Carolina — 0.2%

    

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

     750        805,245   

Ohio — 0.4%

    

County of Allen Ohio, Refunding RB, Hospital Facilities, Catholic Health Partners, Series A, 5.00%, 5/01/42

     750        832,568   

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

     530        667,487   
    

 

 

 
               1,500,055   

Pennsylvania — 0.7%

    

Pennsylvania Turnpike Commission, RB:

    

Sub-Series A, 5.00%, 12/01/43

     1,420        1,543,881   

Subordinate, Special Motor License Fund, 6.00%, 12/01/36

     575        704,357   

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

     400        468,060   
    

 

 

 
               2,716,298   

Puerto Rico — 3.1%

    

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

    

6.38%, 8/01/39

     3,200        3,607,104   

6.00%, 8/01/42

     2,275        2,490,124   

Puerto Rico Sales Tax Financing Corp., Refunding RB:

    

CAB, Series A (NPFGC), 5.64%, 8/01/41 (b)

     11,000        2,286,570   

CAB, Series C, 5.50%, 8/01/38 (b)

     8,000        2,032,560   

First Sub-Series C, 6.00%, 8/01/39

     1,180        1,299,133   
    

 

 

 
               11,715,491   

South Carolina — 1.3%

    

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

     115        140,273   

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

     1,000        1,151,920   

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

     3,000        3,476,790   
    

 

 

 
               4,768,983   

Tennessee — 2.4%

    

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

     2,455        2,866,851   

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

     5,000        6,009,200   
    

 

 

 
               8,876,051   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    29


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Texas — 11.9%

    

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

    

6.00%, 11/15/35

   $ 2,100      $ 2,539,866   

5.38%, 11/15/38

     1,350        1,568,835   

Dallas-Fort Worth International Airport Facilities Improvement Corp., RB, Series A (NPFGC), 5.50%, 11/01/33

     13,000        13,277,290   

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

     1,725        1,942,453   

Midland County Fresh Water Supply District No. 1, RB, City of Midland Project, Series A, 4.46%, 9/15/36 (b)

     2,130        760,218   

North Texas Tollway Authority, Refunding RB, First Tier:

    

(NPFGC), 5.75%, 1/01/40

     1,600        1,827,776   

Series A, 6.00%, 1/01/28

     2,795        3,294,439   

Series K-1 System, 5.75%, 1/01/38

     3,800        4,370,836   

Series K-2 System, 6.00%, 1/01/38

     4,015        4,674,865   

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project, CAB (b):

    

4.58%, 9/15/35

     6,765        2,457,792   

4.65%, 9/15/36

     11,525        3,940,167   

4.72%, 9/15/37

     8,245        2,647,717   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/29

     1,190        1,289,306   
    

 

 

 
               44,591,560   

Washington — 1.9%

    

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

     1,600        1,812,080   

Washington Health Care Facilities Authority, RB, Series A:

    

MultiCare Health System, 5.00%, 8/15/44

     270        298,042   

Providence Health & Services, 5.00%, 10/01/39

     900        980,568   

Providence Health & Services, 5.25%, 10/01/39

     625        695,744   

Washington Health Care Facilities Authority,
Providence Health & Services, Refunding RB:

    

Series A, 5.00%, 10/01/42

     200        225,088   

Series D (AGM), 5.25%, 10/01/33

     2,800        3,082,996   
    

 

 

 
               7,094,518   

Wisconsin — 0.6%

    

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

     1,375        1,560,102   

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, 5.00%, 4/01/42

     480        535,704   
    

 

 

 
               2,095,806   
Total Municipal Bonds – 114.8%              428,475,483   
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (f)

              

Arizona — 0.8%

    

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

     1,200        1,389,816   

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

     1,500        1,693,905   
    

 

 

 
               3,083,721   
Municipal Bonds Transferred to
Tender Option Bond Trusts (f)
   Par  
(000)
    Value  

California — 1.9%

    

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

   $ 2,500      $ 2,816,400   

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

     404        483,481   

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

     2,810        3,178,953   

University of California, RB, Series O, 5.75%, 5/15/34

     840        1,012,085   
    

 

 

 
               7,490,919   

Colorado — 2.4%

    

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A:

    

5.50%, 7/01/34 (g)

     900        1,049,845   

5.00%, 2/01/41

     7,001        7,728,803   
    

 

 

 
               8,778,648   

District of Columbia — 1.7%

    

District of Columbia, RB, Series A, 5.50%, 12/01/30 (g)

     1,005        1,225,785   

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

     1,780        2,149,055   

Metropolitan Washington Airports Authority, Refunding ARB, Series A, AMT, 5.00%, 10/01/30

     2,530        2,913,320   
    

 

 

 
               6,288,160   

Florida — 11.2%

    

City of Tallahassee Florida, RB (NPFGC):

    

5.00%, 10/01/32 (g)

     4,000        4,475,400   

5.00%, 10/01/37

     7,500        8,300,700   

County of Miami-Dade Florida, RB, 5.00%, 10/01/39

     4,621        5,204,848   

County of Miami-Dade Florida, Refunding RB, 5.00%, 7/01/42

     4,480        5,047,930   

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

     1,349        1,531,865   

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

     10,000        11,003,800   

Orange County School Board, COP, Series A:

    

(AGC), 5.50%, 8/01/34

     3,544        4,069,432   

(NPFGC), 5.00%, 8/01/31

     2,000        2,194,660   
    

 

 

 
               41,828,635   

Illinois — 4.7%

    

City of Chicago Illinois, RB, Motor Fuel Tax Revenue (AGC), 5.00%, 1/01/38

     2,000        2,125,460   

City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A, 5.00%, 1/01/41

     3,430        3,828,017   

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

     1,880        2,131,143   

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.00%, 6/15/42

     270        301,479   

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project, Series B, 4.25%, 6/15/42 (g)

     4,000        4,190,040   

State of Illinois, RB, Build Illinois Bonds, Series B, 5.25%, 6/15/34 (g)

     4,399        5,062,680   
    

 

 

 
               17,638,819   

Louisiana — 1.6%

    

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

     5,400        5,955,174   

Massachusetts — 3.1%

    

Massachusetts School Building Authority, RB, Series A (AGM):

    

5.00%, 8/15/13 (c)

     1,366        1,488,280   

5.00%, 8/15/30

     9,234        10,060,725   
    

 

 

 
               11,549,005   

 

See Notes to Financial Statements.

 

                
30    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)
   Par  
(000)
    Value  

Michigan — 1.3%

    

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

   $ 4,300      $ 4,781,385   

Nevada — 3.3%

    

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

     3,778        4,392,874   

Clark County Water Reclamation District, GO, Series B:

    

5.50%, 7/01/29

     4,499        5,496,004   

5.75%, 7/01/34

     1,829        2,234,062   
    

 

 

 
               12,122,940   

New Jersey — 0.6%

    

New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 6/15/36 (g)

     1,840        2,102,274   

New York — 3.3%

    

New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40

     1,260        1,492,418   

New York City Municipal Water Finance Authority, Refunding RB, Water and Sewer System, Second General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47

     5,680        6,493,830   

Port Authority of New York & New Jersey, Refunding RB, Construction One Hundred Forty-Third, AMT, 5.00%, 10/01/30

     2,500        2,715,900   

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

     1,300        1,519,284   
    

 

 

 
               12,221,432   

Ohio — 0.2%

    

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

     580        663,508   

Puerto Rico — 0.7%

    

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

     2,380        2,578,563   

South Carolina — 2.5%

    

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

    

5.25%, 12/01/15

     6,895        7,744,947   

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

     1,275        1,468,698   
    

 

 

 
               9,213,645   

South Dakota — 0.1%

    

South Dakota HDA, Refunding RB, Homeownership Mortgage Series K, 5.05%, 5/01/36

     483        493,402   
Municipal Bonds Transferred to
Tender Option Bond Trusts (f)
   Par  
(000)
    Value  

Texas — 1.2%

    

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

     $  2,200      $ 2,472,998   

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

     1,600        1,822,176   
    

 

 

 
               4,295,174   

Utah — 1.5%

    

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

     5,000        5,694,300   

Virginia — 0.1%

    

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

     350        402,968   

Washington — 1.2%

    

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

     4,004        4,520,278   

Wisconsin — 0.4%

    

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

     1,430        1,586,547   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 43.8%
             163,289,497   

Total Long-Term Investments

(Cost — $531,164,881) — 158.6%

  

  

    591,764,980   
    
                  
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.03%, (h)(i)

     545,905        545,905   

Total Short-Term Securities

(Cost — $545,905) — 0.1%

  

  

    545,905   
Total Investments (Cost — $531,710,786) — 158.7%        592,310,885   
Other Assets Less Liabilities — 1.3%        4,732,872   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (21.8)%

   

    (81,285,073
VRDP Shares, at Liquidation Value — (38.2)%        (142,500,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 373,258,684   
    

 

 

 

 

Notes to Schedule of Investments

 

(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 reflects the current yield as of report date.

 

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

 

(c)   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.

 

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

 

Counterparty   Value        Unrealized
Appreciation
 

JPMorgan Chase & Co.

  $ 2,420,062         $ 25,338   

 

(e)   Variable rate security. Rate shown is as of report date.

 

(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)   All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from February 1, 2016 to December 1, 2029, is $17,008,920.

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    31


Table of Contents

Schedule of Investments (concluded)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

 

(h)   Investments in issuers considered to be an affiliate of the Fund during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliate      Shares Held
at April 30,
2012
       Net
Activity
       Shares Held
at April 30,
2013
       Income  

FFI Institutional Tax-Exempt Fund

       9,127,957           (8,582,052        545,905         $ 1,336   

 

(i)   Represents the current yield as of report date.

 

Ÿ  

Financial futures contracts as of April 30, 2013 were as follows:

 

Contracts Sold     Issue   Exchange   Expiration   Notional
Value
    Unrealized
Depreciation
 
  (160   10-Year US Treasury Note   Chicago Board of Trade   June 2013   $ 21,337,500      $ (230,522

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access

 

Ÿ  

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)

 

Ÿ  

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. 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 is not necessarily an indication of the risks associated with 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 Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 591,764,980                   $ 591,764,980   

Short-Term Securities

  $ 545,905                               545,905   
 

 

 

      

 

 

      

 

 

      

 

 

 

Total

  $ 545,905         $ 591,764,980                   $ 592,310,885   
 

 

 

      

 

 

      

 

 

      

 

 

 

 

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

      

     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments2             

Liabilities:

                

Interest rate contracts

  $ (230,522                          $ (230,522

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

 

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

      

   

     Level 1        Level 2        Level 3        Total  

Assets:

                

Cash pledged for financial futures contracts

  $ 213,000                             $ 213,000   

Liabilities:

                

TOB trust certificates

            $ (81,244,091                  (81,244,091

VRDP Shares

              (142,500,000                  (142,500,000
 

 

 

      

 

 

      

 

 

      

 

 

 

Total

  $ 213,000         $ (223,744,091                $ (223,531,091
 

 

 

      

 

 

      

 

 

      

 

 

 

There were no transfers between levels during the year ended April 30, 2013.

 

See Notes to Financial Statements.

 

                
32    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments April 30, 2013

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Alabama — 1.7%

    

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

   $ 4,550      $ 4,448,581   

Alaska — 0.6%

    

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

     1,660        1,478,811   

Arizona — 3.4%

    

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

     2,200        1,554,850   

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

     2,215        2,223,085   

Salt Verde Financial Corp., RB, Senior:

    

5.00%, 12/01/32

     2,000        2,269,900   

5.00%, 12/01/37

     2,360        2,647,802   

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

     85        85,359   
    

 

 

 
               8,780,996   

California — 11.2%

    

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

     125        124,848   

California Health Facilities Financing Authority, RB:

    

St. Joseph Health System, Series A, 5.75%, 7/01/39

     1,530        1,803,977   

Stanford Hospital and Clinics, Series A, 5.00%, 8/15/51

     825        922,400   

Sutter Health, Series B, 6.00%, 8/15/42

     2,200        2,721,510   

California Pollution Control Financing Authority, RB:

    

Poseidon Resources (Channel Side) LP Desalination, AMT, 5.00%, 7/01/37

     710        733,153   

Poseidon Resources (Channel Side) LP Desalination, AMT, 5.00%, 11/21/45

     1,790        1,836,361   

San Diego County Water Authority Desalination Project, 5.00%, 11/21/45

     865        894,176   

California State Public Works Board, RB, Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34

     820        1,017,866   

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

     1,510        1,651,155   

California Statewide Communities Development Authority, Refunding RB, Episcopal Communities and Services:

    

5.00%, 5/15/42

     325        354,084   

5.00%, 5/15/47

     250        271,773   

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

     555        644,261   

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

    

3.52%, 8/01/22

     2,405        1,741,412   

3.83%, 8/01/23

     2,455        1,663,483   

San Diego Unified School District California, GO, CAB, Election of 2008, Series A, 4.15%, 7/01/29 (b)

     3,475        1,788,583   

State of California, GO, Various Purpose, 6.50%, 4/01/33

     8,370        10,467,940   
    

 

 

 
               28,636,982   

Colorado — 2.4%

    

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

     1,455        1,538,663   

Colorado Health Facilities Authority, Refunding RB, Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42

     1,230        1,318,043   

Colorado State Board of Governors, Refunding RB, Series A, 5.00%, 3/01/43

     820        1,048,378   

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

     710        807,433   

Colorado (concluded)

    

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

   $ 1,250      $ 1,471,775   
    

 

 

 
               6,184,292   

Connecticut — 1.5%

    

Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit Group, 5.00%, 11/15/40

     955        1,078,988   

Connecticut State Health & Educational Facility Authority, Refunding RB, Wesleyan University, 5.00%, 7/01/35

     2,515        2,845,873   
    

 

 

 
               3,924,861   

Delaware — 1.4%

    

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40

     790        893,032   

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

     2,430        2,606,952   
    

 

 

 
               3,499,984   

District of Columbia — 3.3%

    

District of Columbia, Tax Allocation Bonds, City Market O Street Project, 5.13%, 6/01/41

     1,520        1,652,422   

Metropolitan Washington Airports Authority, Refunding RB:

    

CAB, Second Senior Lien, Series B (AGC), 4.91%, 10/01/35 (b)

     13,485        4,549,165   

First Senior Lien, Series A, 5.00%, 10/01/39

     505        558,904   

First Senior Lien, Series A, 5.25%, 10/01/44

     1,470        1,641,784   
    

 

 

 
               8,402,275   

Florida — 8.7%

    

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

     750        863,557   

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

     2,375        2,702,797   

County of Miami-Dade Florida, RB, CAB,
Sub-Series A (NPFGC), 5.20%, 10/01/37 (b)

     2,340        668,117   

County of Miami-Dade Florida, Refunding RB, Miami International Airport, Series A-1, 5.38%, 10/01/41

     2,620        2,983,446   

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

     2,095        2,110,670   

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

     1,900        1,900,988   

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

     1,570        2,002,661   

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

     2,300        2,341,216   

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

     640        447,405   

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

     1,390        1,397,534   

Tampa-Hillsborough County Expressway Authority, Refunding RB:

    

Series A, 5.00%, 7/01/42

     960        1,076,074   

Series B, 5.00%, 7/01/42

     1,755        1,955,509   

Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43

     1,740        1,785,936   
    

 

 

 
               22,235,910   

Georgia — 1.4%

    

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

     585        666,391   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    33


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Georgia (concluded)

    

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

   $ 2,410      $ 2,777,212   
    

 

 

 
               3,443,603   

Hawaii — 0.4%

    

State of Hawaii, RB, Harbor System, Series A, 5.25%, 7/01/30

     945        1,097,740   

Illinois — 11.6%

    

Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39

     1,460        1,666,751   

Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40

     730        835,069   

City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien:

    

Series A, 5.75%, 1/01/39

     2,000        2,350,260   

Series C, 6.50%, 1/01/41

     4,055        5,252,644   

City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/34

     3,160        3,509,180   

City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A, 5.25%, 1/01/38

     570        655,500   

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

     900        922,050   

Illinois Finance Authority, Refunding RB:

    

Ascension Health, Series A, 5.00%, 11/15/37

     675        760,867   

Ascension Health, Series A, 5.00%, 11/15/42

     1,230        1,376,751   

Central DuPage Health, Series B, 5.50%, 11/01/39

     1,115        1,286,598   

Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38 (c)

     1,610        1,820,701   

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

    

CAB, Series B-1 (AGM), 4.98%, 6/15/47 (b)

     13,220        2,467,249   

Series B-1 (AGM), 5.00%, 6/15/50

     2,190        2,364,587   

Series B-2, 5.00%, 6/15/50

     1,740        1,878,208   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     930        1,136,665   

6.00%, 6/01/28

     800        976,952   

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

     440        506,422   
    

 

 

 
               29,766,454   

Indiana — 4.2%

    

Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A:

    

4.00%, 8/01/35

     790        829,247   

4.00%, 8/01/38

     1,265        1,322,722   

Indiana Finance Authority, RB:

    

Private Activity Bonds, Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/44

     310        329,019   

Private Activity Bonds, Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/48

     1,030        1,080,171   

Sisters of St. Francis Health, 5.25%, 11/01/39

     585        663,343   

Wastewater Utility, CWA Authority Project, First Lien, 5.25%, 10/01/38

     1,090        1,270,373   

Indiana Finance Authority, Refunding RB:

    

Community Health Network Project, Series A, 5.00%, 5/01/42

     1,315        1,454,521   

Parkview Health System, Series A, 5.75%, 5/01/31

     1,300        1,501,227   

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

     775        920,677   

Indianapolis Local Public Improvement Bond Bank, RB, Series A (c):

    

5.00%, 1/15/36

     275        312,815   

5.00%, 1/15/40

     880        990,898   
    

 

 

 
               10,675,013   

Iowa — 0.7%

    

Iowa Student Loan Liquidity Corp., Refunding RB, Senior Series A-1, AMT, 5.15%, 12/01/22

   $ 1,435      $ 1,661,343   

Kansas — 1.2%

    

Kansas Development Finance Authority, Refunding RB:

    

Adventist Health, 5.75%, 11/15/38

     1,520        1,798,282   

Sisters of Leavenworth, Series A, 5.00%, 1/01/40

     1,155        1,260,070   
    

 

 

 
               3,058,352   

Louisiana — 3.0%

    

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

     570        652,496   

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

     3,500        3,999,835   

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

     430        474,393   

State of Louisiana Gasoline & Fuels Tax Revenue, RB, Second Lien, Series B, 5.00%, 5/01/45

     2,270        2,605,620   
    

 

 

 
               7,732,344   

Maine — 0.4%

    

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

     210        228,671   

Maine State Turnpike Authority, RB, Series A, 5.00%, 7/01/42

     615        707,090   
    

 

 

 
               935,761   

Maryland — 1.1%

    

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

     300        342,129   

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

     580        647,657   

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

     1,520        1,738,470   
    

 

 

 
               2,728,256   

Massachusetts — 2.8%

    

Massachusetts Development Finance Agency, RB, Wellesley College, Series J, 5.00%, 7/01/42

     1,260        1,462,847   

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

     1,165        1,407,658   

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

     1,255        1,396,351   

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

     2,900        2,946,226   
    

 

 

 
               7,213,082   

Michigan — 2.6%

    

City of Detroit Michigan, RB, Water Supply System, Senior Lien, Series A, 5.25%, 7/01/41

     2,145        2,325,502   

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

     635        786,733   

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

     955        1,063,192   

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

     2,105        2,396,879   
    

 

 

 
               6,572,306   

Minnesota — 1.0%

    

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

     2,135        2,595,968   

 

See Notes to Financial Statements.

 

                
34    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Mississippi — 0.3%

    

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

   $ 675      $ 767,266   

Nebraska — 0.7%

    

Central Plains Energy Project Nebraska, RB, Project No. 3:

    

5.25%, 9/01/37

     575        642,815   

5.00%, 9/01/42

     1,005        1,086,928   
    

 

 

 
               1,729,743   

New Hampshire — 1.4%

    

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

     3,035        3,541,026   

New Jersey — 3.6%

    

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 6.25%, 9/15/29

     1,365        1,434,042   

New Jersey EDA, Refunding RB, Cigarette Tax, 5.00%, 6/15/25

     680        785,597   

New Jersey State Turnpike Authority, RB, Series A:

    

5.00%, 1/01/38

     895        1,003,214   

5.00%, 1/01/43

     1,375        1,530,953   

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

     1,575        1,845,837   

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A:

    

4.50%, 6/01/23

     1,725        1,722,171   

4.63%, 6/01/26

     1,000        969,960   
    

 

 

 
               9,291,774   

New York — 6.7%

    

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

     790        808,281   

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

     1,450        1,717,626   

Metropolitan Transportation Authority, Refunding RB:

    

Series B, 5.00%, 11/15/34

     1,740        1,958,492   

Series D, 5.25%, 11/15/40

     840        950,359   

New York City Industrial Development Agency, RB:

    

British Airways Plc Project, AMT, 7.63%, 12/01/32

     1,500        1,529,970   

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

     725        729,053   

Series C, 6.80%, 6/01/28

     535        541,950   

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

     850        1,016,251   

New York State Thruway Authority, Refunding RB, Series I, 5.00%, 1/01/42

     1,235        1,379,285   

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

    

6.00%, 12/01/36

     900        1,056,600   

6.00%, 12/01/42

     875        1,024,502   

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

     4,240        4,517,805   
    

 

 

 
               17,230,174   

North Carolina — 0.4%

    

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

     970        1,082,054   

Oklahoma — 0.4%

    

Oklahoma County Finance Authority, Refunding RB, Epworth Villa Project, Series A, 5.13%, 4/01/42

     975        999,687   

Oregon — 0.1%

    

City of Tigard Washington County Oregon, Refunding RB, Water System, 5.00%, 8/01/37

     175        202,475   

Pennsylvania — 4.0%

    

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

   $ 1,700      $ 1,721,369   

Pennsylvania Economic Development Financing Authority, RB:

    

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

     2,520        2,930,558   

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

     2,500        2,490,500   

Philadelphia Authority for Industrial Development, RB:

    

Arbor House, Inc. Project, Series E, 6.10%, 7/01/33

     1,105        1,128,890   

Commercial Development, AMT, 7.75%, 12/01/17

     725        726,117   

Saligman House Project, Series C, 6.10%, 7/01/33

     1,245        1,271,917   
    

 

 

 
               10,269,351   

Puerto Rico — 3.3%

    

Puerto Rico Sales Tax Financing Corp., RB:

    

CAB, Series A, 5.72%, 8/01/35 (b)

     4,000        1,140,520   

First Sub-Series A, 6.50%, 8/01/44

     3,860        4,377,472   

Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB (b):

    

First Sub-Series C, 5.84%, 8/01/38

     2,975        695,317   

Senior Series C, 5.54%, 8/01/39

     9,665        2,302,203   
    

 

 

 
               8,515,512   

South Carolina — 1.0%

    

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

     2,285        2,575,081   

South Dakota — 0.3%

    

South Dakota Health and Educational Facilities Authority, RB, Series E, 5.00%, 11/01/42

     745        825,147   

Tennessee — 1.0%

    

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

     2,320        2,320,650   

Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47

     150        169,918   
    

 

 

 
               2,490,568   

Texas — 11.9%

    

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

     3,655        3,672,288   

Central Texas Regional Mobility Authority, Refunding RB:

    

Senior Lien, 6.25%, 1/01/46

     1,480        1,748,324   

Senior Lien, Series A, 5.00%, 1/01/33 (c)

     70        77,158   

Senior Lien, Series A, 5.00%, 1/01/43 (c)

     130        140,332   

Sub-Lien, 5.00%, 1/01/33 (c)

     250        265,132   

Sub-Lien, 5.00%, 1/01/42 (c)

     220        228,884   

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

     1,050        1,203,006   

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

     1,070        1,233,710   

Dallas/Fort Worth International Airport, Refunding RB, Series E, AMT, 5.00%, 11/01/35

     1,255        1,339,700   

Fort Bend County Industrial Development Corp., RB, NRG Energy, Inc., Series B, 4.75%, 11/01/42

     295        297,021   

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18 (d)

     1,910        2,554,587   

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

     450        526,063   

North Texas Tollway Authority, RB, CAB, Special Projects System, Series B, 5.06%, 9/01/37 (b)

     1,400        415,142   

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

     4,190        4,626,598   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    35


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Texas (concluded)

    

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

    

5.50%, 8/01/24

   $ 1,100      $ 1,320,143   

5.50%, 8/01/25

     1,120        1,347,786   

Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare Project, Series A, 5.00%, 8/15/43

     250        278,272   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, Gas Supply, 5.00%, 12/15/29

     1,320        1,430,154   

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

    

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

     2,000        2,447,280   

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

     1,700        2,044,012   

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

     875        889,245   

University of Texas System, Refunding RB, Financing System, Series B, 5.00%, 8/15/43

     2,045        2,388,887   
    

 

 

 
               30,473,724   

Utah — 0.6%

    

County of Utah, RB, IHC Heath Services, Inc., 5.00%, 5/15/43

     1,405        1,584,109   

Vermont — 0.4%

    

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

     890        901,214   

Virginia — 2.2%

    

Fairfax County EDA, Refunding RB, Goodwin House, Inc., 5.13%, 10/01/42

     1,000        1,057,990   

Hanover County EDA, Refunding RB, Covenant Woods, Series A:

    

5.00%, 7/01/42

     730        735,825   

5.00%, 7/01/47

     970        974,181   

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OPCO, LLC Project, AMT:

    

5.25%, 1/01/32

     550        604,967   

6.00%, 1/01/37

     1,275        1,467,882   

5.50%, 1/01/42

     805        876,243   
    

 

 

 
               5,717,088   

Washington — 1.5%

    

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

     1,200        1,200,816   

Washington Health Care Facilities Authority, RB, Swedish Health Services, Series A, 6.75%, 5/15/21 (d)

     1,375        1,925,729   

Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series A, 5.00%, 10/01/42

     705        793,435   
    

 

 

 
               3,919,980   

Wisconsin — 4.1%

    

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

     4,980        6,016,936   

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

     1,710        1,940,200   

WPPI Energy, Refunding RB, Series A:

    

5.00%, 7/01/29

     260        303,043   

5.00%, 7/01/30

     330        382,757   

5.00%, 7/01/31

     720        833,069   

5.00%, 7/01/37

     870        984,796   
    

 

 

 
               10,460,801   

Wyoming — 0.1%

    

Wyoming Municipal Power Agency, RB, Series A, 5.00%, 1/01/42

   $ 210      $ 227,634   
Total Municipal Bonds — 108.6%              277,877,322   
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
 

Arizona — 0.7%

    

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

     1,690        1,908,317   

California — 9.2%

    

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

     2,270        2,623,275   

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

     1,845        2,143,761   

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

     4,120        4,653,396   

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

     1,620        1,825,027   

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

     748        895,336   

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

     6,600        7,485,126   

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

     3,494        3,898,359   
    

 

 

 
               23,524,280   

Colorado — 2.5%

    

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

    

Series C-3, 5.10%, 10/01/41

     2,580        2,843,547   

Series C-7, 5.00%, 9/01/36

     1,650        1,795,942   

Colorado Health Facilities Authority, Refunding RB, Catholic Health, Series A, 5.50%, 7/01/34 (f)

     1,490        1,738,077   
    

 

 

 
               6,377,566   

Connecticut — 2.8%

    

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

    

Series T-1, 4.70%, 7/01/29

     3,179        3,578,336   

Series X-3, 4.85%, 7/01/37

     3,262        3,653,855   
    

 

 

 
               7,232,191   

Florida — 1.7%

    

County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34

     3,939        4,448,776   

Georgia — 1.0%

    

Private Colleges & Universities Authority, Refunding RB, Emory University, Series C, 5.00%, 9/01/38

     2,259        2,569,203   

Illinois — 0.9%

    

City of Chicago Illinois, Refunding RB, Second Lien Project, 5.00%, 11/01/42

     2,079        2,354,531   

Maryland — 1.3%

    

Maryland Health & Higher Educational Facilities Authority, RB, Ascension Health, Series B, 5.00%, 11/15/51

     2,920        3,266,020   

 

See Notes to Financial Statements.

 

                
36    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
   Par  
(000)
    Value  

Massachusetts — 3.5%

    

Massachusetts School Building Authority, Sales Tax RB:

    

Senior Series B, 5.00%, 10/15/41

   $ 3,150      $ 3,635,320   

Series A (AGM), 5.00%, 8/15/15 (d)

     644        701,203   

Series A (AGM), 5.00%, 8/15/30

     4,350        4,740,109   
    

 

 

 
               9,076,632   

Michigan — 0.9%

    

Detroit Water and Sewerage Department, Refunding RB, Senior Lien, Series A:

    

5.00%, 7/01/32

     1,088        1,187,689   

5.25%, 7/01/39

     937        1,022,463   
    

 

 

 
               2,210,152   

New Hampshire — 0.6%

    

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

     1,409        1,649,413   

New Jersey — 0.8%

    

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36

     1,720        1,965,169   

New York — 8.9%

    

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

     1,110        1,317,732   

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

     1,110        1,309,736   

New York City Transitional Finance Authority, RB, Future Tax Secured, Sub-Series E-1, 5.00%, 2/01/42

     1,720        1,959,868   

New York Liberty Development Corp., RB, 1 World Trade Center, Port Authority Construction, 5.25%, 12/15/43

     7,440        8,544,872   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center, Project, 5.75%, 11/15/51

     4,460        5,289,382   

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

     4,034        4,319,321   
    

 

 

 
               22,740,911   

North Carolina — 0.5%

    

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

     1,080        1,214,568   

Ohio — 4.4%

    

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

     9,644        11,152,507   

Tennessee — 1.0%

    

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

     2,250        2,455,875   

Texas — 3.1%

    

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

   $ 4,620      $ 5,276,826   

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

     2,350        2,670,211   
    

 

 

 
               7,947,037   

Utah — 1.1%

    

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

     2,519        2,833,018   

Virginia — 2.6%

    

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

     3,749        4,288,217   

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

     2,094        2,323,721   
    

 

 

 
               6,611,938   

Washington — 0.8%

    

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

     1,860        2,099,305   

Wisconsin — 1.7%

    

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

     3,959        4,393,515   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 50.0%
        128,030,924   

Total Long-Term Investments

(Cost — $363,617,396) — 158.6%

  

  

    405,908,246   
    
   
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.03% (g)(h)

     1,244,129        1,244,129   

Total Short-Term Securities

(Cost — $1,244,129) — 0.5%

             1,244,129   
Total Investments (Cost — $364,861,525) — 159.1%        407,152,375   
Other Assets Less Liabilities — 0.9%        2,249,769   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (27.3)%

   

    (69,790,955
VMTP Shares, at Redemption Value — (32.7)%        (83,700,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 255,911,189   
    

 

 

 
Notes to Schedule of Investments

 

(a)   Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. 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

 

Citigroup, Inc

  $ 1,303,713         $ 10,409   

JPMorgan Chase & Co

  $ 2,532,207         $ 30,544   

 

(d)   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.

 

(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.

 

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    37


Table of Contents

Schedule of Investments (concluded)

  

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(f)   All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from October 1, 2016 to February 15, 2031, is $8,894,869.

 

(g)   Investments in issuers considered to be an affiliate of the Fund during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliate      Shares Held
at April 30,
2012
       Net
Activity
       Shares Held
at April 30,
2013
       Income  

FFI Institutional Tax-Exempt Fund

       22,614           1,221,515           1,244,129         $  65   

 

(h)   Represents the current yield as of report date.

 

Ÿ  

Financial futures contracts as of April 30, 2013 were as follows:

 

Contracts Sold   Issue   Exchange   Expiration   Notional
Value
    Unrealized
Depreciation
 
(181)   10-Year US Treasury Note   Chicago Board of Trade   June 2013   $ 24,138,047      $ (356,659

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access

 

Ÿ  

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)

 

Ÿ  

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. 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 is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instrumentsand other significant accounting policies, please refer to the Note 1 of the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 405,908,246              $ 405,908,246   

Short-Term Securities

  $ 1,244,129                          1,244,129   
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 1,244,129         $ 405,908,246              $ 407,152,375   
 

 

 

      

 

 

      

 

    

 

 

 

 

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

      

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments2             

Liabilities:

                

Interest rate contracts

  $ (356,659                     $ (356,659

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

 

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

      

   

     Level 1        Level 2        Level 3      Total  

Assets:

                

Cash

  $ 1,293,337                        $ 1,293,337   

Cash pledged for financial futures contracts

    200,000                          200,000   

Liabilities:

                

TOB trust certificates

            $ (69,752,555             (69,752,555

VMTP Shares

              (83,700,000             (83,700,000
 

 

 

      

 

 

      

 

    

 

 

 

Total

    $1,493,337         $ (153,452,555           $ (151,959,218
 

 

 

      

 

 

      

 

    

 

 

 

There were no transfers between levels during the year ended April 30, 2013.

 

See Notes to Financial Statements.

 

                
38    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments April 30, 2013

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Alabama — 1.8%

    

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

   $ 3,450      $ 3,373,100   

Alaska — 0.8%

    

Northern Tobacco Securitization Corp., Refunding RB, Asset Backed, 5.00%, 6/01/46

     1,660        1,478,811   

Arizona — 1.7%

    

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

     2,060        2,067,519   

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

     900        901,296   

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

     210        210,888   
    

 

 

 
               3,179,703   

California — 14.8%

    

Benicia Unified School District, GO, CAB, Refunding, Series A (NPFGC), 2.21%, 8/01/20 (a)

     2,000        1,704,580   

California Health Facilities Financing Authority, RB:

    

St. Joseph Health System, Series A, 5.75%, 7/01/39

     1,110        1,308,768   

Stanford Hospital and Clinics, Series A, 5.00%, 8/15/51

     595        665,246   

Sutter Health, Series B, 6.00%, 8/15/42

     1,585        1,960,724   

California Pollution Control Financing Authority, RB:

    

5.00%, 11/21/45

     620        640,913   

Poseidon Resources (Channel Side) LP Desalination, AMT, 5.00%, 7/01/37

     515        531,794   

Poseidon Resources (Channel Side) LP Desalination, AMT, 5.00%, 11/21/45

     1,295        1,328,540   

California State Public Works Board, RB, Various Capital Projects, Sub-Series l-1, 6.38%, 11/01/34

     600        744,780   

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

     1,090        1,191,893   

California Statewide Communities Development Authority, Refunding RB, Episcopal Communities and Services:

    

5.00%, 5/15/42

     250        272,373   

5.00%, 5/15/47

     185        201,112   

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

     400        464,332   

San Diego Unified School District California, GO, CAB, Election of 2008, Series A, 4.15%, 7/01/29 (a)

     2,525        1,299,618   

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

    

1.36%, 7/01/17

     1,820        1,719,682   

1.59%, 7/01/18

     1,945        1,792,609   

1.72%, 7/01/19

     2,070        1,862,482   

State of California, GO, Various Purpose:

    

6.00%, 3/01/33

     1,265        1,556,772   

6.50%, 4/01/33

     7,325        9,161,011   
    

 

 

 
               28,407,229   

Colorado — 1.8%

    

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

     1,055        1,115,663   

Colorado State Board of Governors, Refunding RB, Series A, 5.00%, 3/01/43

     595        760,714   

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

     510        579,987   

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

     920        1,083,226   
    

 

 

 
               3,539,590   

Connecticut — 1.5%

    

Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, 5.00%, 11/15/40

     685        773,934   

Connecticut (concluded)

    

Connecticut State Health & Educational Facility Authority, Refunding RB, Wesleyan University, 5.00%, 7/01/35

   $ 1,875      $ 2,121,675   
    

 

 

 
               2,895,609   

Delaware — 1.5%

    

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40

     570        644,339   

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

     2,050        2,199,281   
    

 

 

 
               2,843,620   

District of Columbia — 2.6%

    

Metropolitan Washington Airports Authority, Refunding RB:

    

CAB, Second Senior Lien, Series B (AGC), 4.84%, 10/01/34 (a)

     10,170        3,653,165   

First Senior Lien, Series A, 5.00%, 10/01/39

     255        282,219   

First Senior Lien, Series A, 5.25%, 10/01/44

     1,000        1,116,860   
    

 

 

 
               5,052,244   

Florida — 7.3%

    

Ballantrae Community Development District, Special Assessment Bonds, 6.00%, 5/01/35

     1,465        1,487,576   

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

     545        627,518   

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

     1,725        1,963,085   

County of Miami-Dade Florida, RB, CAB, Sub-Series A (NPFGC), 5.20%, 10/01/37 (a)

     1,765        503,943   

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

     1,515        1,526,332   

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

     1,380        1,380,718   

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

     1,135        1,447,783   

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

     475        332,058   

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

     1,165        1,171,314   

Tampa-Hillsborough County Expressway Authority, Refunding RB:

    

Series A, 5.00%, 7/01/42

     695        779,032   

Series B, 5.00%, 7/01/42

     1,275        1,420,669   

Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43

     1,260        1,293,264   
    

 

 

 
               13,933,292   

Georgia — 1.3%

    

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

     420        478,434   

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

     1,740        2,005,124   
    

 

 

 
               2,483,558   

Hawaii — 0.4%

    

State of Hawaii Harbor System, RB, Series A, 5.25%, 7/01/30

     680        789,908   

Idaho — 1.0%

    

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

     2,000        2,003,500   

Illinois — 12.0%

    

Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39

     1,060        1,210,107   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    39


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Illinois (concluded)

    

Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40

   $ 530      $ 606,283   

City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien:

    

Series A, 5.75%, 1/01/39

     2,500        2,937,825   

Series C, 6.50%, 1/01/41

     2,935        3,801,852   

City of Chicago Illinois, GO, Series A, 5.00%, 1/01/34

     2,290        2,543,045   

City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A, 5.25%, 1/01/38

     410        471,500   

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

     900        922,050   

Illinois Finance Authority, Refunding RB:

    

Ascension Health Alliance, Series A, 5.00%, 11/15/37

     490        552,333   

Ascension Health Alliance, Series A, 5.00%, 11/15/42

     890        996,186   

Central DuPage Health, Series B, 5.50%, 11/01/39

     800        923,120   

Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38 (b)

     1,165        1,317,464   

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

    

CAB, Series B-1 (AGM), 4.98%, 6/15/47 (a)

     9,555        1,783,250   

Series B-1 (AGM), 5.00%, 6/15/50

     1,585        1,711,356   

Series B-2, 5.00%, 6/15/50

     1,260        1,360,082   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     675        824,998   

6.00%, 6/01/28

     500        610,595   

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

     315        362,552   
    

 

 

 
               22,934,598   

Indiana — 4.5%

    

Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A:

    

4.00%, 8/01/35

     575        603,566   

4.00%, 8/01/38

     920        961,980   

Indiana Finance Authority, RB:

    

Private Activity (Ohio River Bridges East End Crossing Project), Series A, 5.00%, 7/01/44

     225        238,804   

Private Activity (Ohio River Bridges East End Crossing Project), Series A, 5.00%, 7/01/48

     740        776,045   

CWA Authority Project, First Lien, Series A, 5.25%, 10/01/38

     790        920,729   

Sisters of St. Francis Health, 5.25%, 11/01/39

     420        476,246   

Indiana Finance Authority, Refunding RB, Series A:

    

Community Health Network Project, 5.00%, 5/01/42

     955        1,056,326   

Parkview Health System, 5.75%, 5/01/31

     1,660        1,916,951   

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

     565        671,203   

Indianapolis Local Public Improvement Bond Bank, RB, Series A (b):

    

5.00%, 1/15/36

     200        227,502   

5.00%, 1/15/40

     640        720,653   
    

 

 

 
               8,570,005   

Iowa — 0.6%

    

Iowa Student Loan Liquidity Corp., Refunding RB,
Series A-1, AMT, 5.15%, 12/01/22

     1,080        1,250,348   

Kansas — 1.1%

    

Kansas Development Finance Authority, Refunding RB:

    

Adventist Health, 5.75%, 11/15/38

     1,105        1,307,303   

Sisters of Leavenworth, Series A, 5.00%, 1/01/40

     785        856,412   
    

 

 

 
               2,163,715   

Kentucky — 0.3%

    

Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40

   $ 510      $ 610,133   

Louisiana — 2.9%

    

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

     420        480,787   

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

     2,500        2,857,025   

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

     310        342,004   

State of Louisiana Gasoline & Fuels Tax Revenue, RB, Second Lien, Series B, 5.00%, 5/01/45

     1,640        1,882,474   
    

 

 

 
               5,562,290   

Maine — 0.4%

    

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

     150        163,337   

Maine State Turnpike Authority, RB, Series A, 5.00%, 7/01/42

     450        517,383   
    

 

 

 
               680,720   

Maryland — 1.0%

    

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

     220        250,895   

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

     415        463,410   

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

     1,095        1,252,384   
    

 

 

 
               1,966,689   

Massachusetts — 4.5%

    

Massachusetts Development Finance Agency, RB:

    

Neville Communities, Series A (Ginnie Mae), 5.75%, 6/20/22

     600        632,712   

Neville Communities, Series A (Ginnie Mae), 6.00%, 6/20/44

     1,500        1,581,225   

Wellesley College, Series J, 5.00%, 7/01/42

     915        1,062,306   

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

     845        1,021,005   

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

     910        1,012,493   

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

     2,100        2,133,474   

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

     1,040        1,121,214   
    

 

 

 
               8,564,429   

Michigan — 2.5%

    

City of Detroit Michigan, RB, Senior Lien, Series A, 5.25%, 7/01/41

     1,555        1,685,854   

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

     460        569,917   

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

     690        768,170   

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

     1,520        1,730,763   
    

 

 

 
               4,754,704   

Minnesota — 1.0%

    

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

     1,540        1,872,501   

 

See Notes to Financial Statements.

 

                
40    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Nebraska — 0.4%

    

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42

   $ 730      $ 789,510   

New Hampshire — 0.9%

    

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

     1,530        1,785,097   

New Jersey — 2.9%

    

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 6.25%, 9/15/29

     990        1,040,074   

New Jersey EDA, Refunding RB, Cigarette Tax, 5.00%, 6/15/25

     490        566,092   

New Jersey State Turnpike Authority, RB, Series A:

    

5.00%, 1/01/38

     650        728,592   

5.00%, 1/01/43

     1,000        1,113,420   

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

     1,025        1,201,259   

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1-A, 4.63%, 6/01/26

     1,000        969,960   
    

 

 

 
               5,619,397   

New York — 6.1%

    

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

     800        818,512   

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

     1,050        1,243,798   

Metropolitan Transportation Authority, Refunding RB:

    

Series B, 5.00%, 11/15/34

     1,270        1,429,474   

Series D, 5.25%, 11/15/40

     610        690,142   

New York City Industrial Development Agency, RB:

    

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

     525        527,935   

Series C, 6.80%, 6/01/28

     415        420,391   

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

     615        735,288   

New York State Thruway Authority, Refunding RB, Series I, 5.00%, 1/01/42

     890        993,978   

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

    

6.00%, 12/01/36

     650        763,100   

6.00%, 12/01/42

     630        737,642   

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

     3,200        3,409,664   
    

 

 

 
               11,769,924   

North Carolina — 0.4%

    

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

     705        786,442   

Oregon — 0.1%

    

City of Tigard Washington County Oregon, Refunding RB, Water System, 5.00%, 8/01/37

     125        144,625   

Pennsylvania — 2.2%

    

Pennsylvania Economic Development Financing Authority, RB:

    

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

     1,830        2,128,143   

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

     1,500        1,499,910   

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

     540        540,832   
    

 

 

 
               4,168,885   

Puerto Rico — 3.8%

    

Puerto Rico Sales Tax Financing Corp., RB:

    

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

     2,790        3,164,028   

Series A, 5.72%, 8/01/35 (a)

     10,000        2,851,300   

Puerto Rico (concluded)

    

Puerto Rico Sales Tax Financing Corp., Refunding RB, Series C, 5.54%, 8/01/39 (a)

   $ 2,800      $ 666,960   

Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, First Sub-Series C, 5.84%, 8/01/38 (a)

     2,145        501,329   
    

 

 

 
               7,183,617   

South Carolina — 1.0%

    

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

     1,650        1,859,468   

South Dakota — 0.3%

    

South Dakota Health and Educational Facilities Authority, RB, Series E, 5.00%, 11/01/42

     540        598,093   

Tennessee — 1.1%

    

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

     1,900        1,905,320   

Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47

     105        118,943   
    

 

 

 
               2,024,263   

Texas — 9.3%

    

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

     2,500        2,511,825   

Central Texas Regional Mobility Authority, Refunding RB:

    

Senior Lien, 6.25%, 1/01/46

     1,070        1,263,991   

Senior Lien, Series A, 5.00%, 1/01/33 (b)

     50        55,112   

Senior Lien, Series A, 5.00%, 1/01/43 (b)

     95        102,551   

Sub Lien, 5.00%, 1/01/33 (b)

     180        190,895   

Sub Lien, 5.00%, 1/01/42 (b)

     160        166,461   

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

     760        870,747   

City of Houston Texas Airport System, Refunding RB, Series A, 5.50%, 7/01/39

     535        616,855   

Dallas/Fort Worth International Airport, Refunding RB, Series E, AMT, 5.00%, 11/01/35

     910        971,416   

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18 (c)

     1,380        1,845,722   

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

     320        374,090   

Midland County Fresh Water Supply District No 1, RB, City of Midland Project, Series A, CAB (a):

    

4.71%, 9/15/40

     2,525        706,798   

4.78%, 9/15/41

     1,395        365,406   

North Texas Tollway Authority, RB, CAB, Special Projects System, Series B, 5.06%, 9/01/37 (a)

     1,015        300,978   

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

     3,020        3,334,684   

Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare Project, 5.00%, 8/15/43

     180        200,356   

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

    

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

     1,165        1,425,541   

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

     1,300        1,563,068   

University of Texas System, Refunding RB, Series B, 5.00%, 8/15/43

     805        940,369   
    

 

 

 
               17,806,865   

Utah — 0.6%

    

County of Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43

     1,020        1,150,030   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    41


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Vermont — 0.0%

    

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

   $ 80      $ 80,922   

Virginia — 2.5%

    

Fairfax County EDA, Refunding RB, Goodwin House Inc., 5.13%, 10/01/42

     2,500        2,644,975   

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings Project, AMT:

    

5.25%, 1/01/32

     400        439,976   

6.00%, 1/01/37

     925        1,064,934   

5.50%, 1/01/42

     585        636,772   
    

 

 

 
               4,786,657   

Washington — 0.5%

    

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

     890        890,605   

Wisconsin — 4.0%

    

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

     3,620        4,373,756   

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

     1,235        1,401,256   

WPPI Energy, Refunding RB, Series A:

    

5.00%, 7/01/29

     190        221,454   

5.00%, 7/01/30

     240        278,369   

5.00%, 7/01/31

     520        601,661   

5.00%, 7/01/37

     635        718,788   
    

 

 

 
       7,595,284   

 

  

 

 

   

 

 

 
Total Municipal Bonds — 103.4%              197,949,980   
    
   

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

 

Arizona — 0.7%

    

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

     1,220        1,377,601   

California — 10.7%

    

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

     1,640        1,895,230   

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

     1,335        1,551,176   

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

     2,980        3,365,806   

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

     1,170        1,318,075   

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

     553        662,548   

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

     4,770        5,409,705   

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

     5,519        6,157,065   
    

 

 

 
               20,359,605   

Colorado — 2.4%

    

Colorado Health Facilities Authority (AGM):

    

Catholic Health, Series C-3,
5.10%, 10/01/41

     1,870        2,061,021   

Catholic Health, Series C-7,
5.00%, 9/01/36

     1,200        1,306,140   

Colorado Health Facilities Authority, Refunding RB, Catholic Health, Series A, 5.50%, 7/01/34 (e)

     1,080        1,259,814   
    

 

 

 
               4,626,975   

Connecticut — 2.7%

    

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

    

Series T-1, 4.70%, 7/01/29

   $ 2,299      $ 2,588,105   

Series X-3, 4.85%, 7/01/37

     2,362        2,645,121   
    

 

 

 
               5,233,226   

Florida — 1.7%

    

County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34

     2,840        3,206,732   

Georgia — 1.0%

    

Private Colleges & Universities Authority, Refunding RB, Emory University, Series C, 5.00%, 9/01/38

     1,649        1,875,746   

Illinois — 2.2%

    

City of Chicago Illinois Waterworks, Refunding RB, 5.00%, 11/01/42

     3,638        4,120,430   

Maryland — 1.2%

    

Maryland Health & Higher Educational Facilities Authority, RB, Series B, 5.00%, 11/15/51

     2,100        2,348,850   

Massachusetts — 3.1%

    

Massachusetts School Building Authority, RB:

    

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

     2,280        2,631,280   

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

     387        421,143   

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

     2,613        2,846,912   
    

 

 

 
               5,899,335   

Michigan — 0.8%

    

Detroit Water and Sewerage Department,
Refunding RB, Series A:

    

5.00%, 7/01/32

     788        860,051   

5.25%, 7/01/39

     675        736,173   
    

 

 

 
               1,596,224   

New Hampshire — 0.6%

    

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

     1,019        1,193,193   

New Jersey — 0.8%

    

New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 6/15/36 (e)

     1,240        1,416,750   

New York — 10.6%

    

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

     810        961,588   

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

     810        955,754   

New York City Transitional Finance Authority, RB:

    

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

     3,299        3,809,519   

Future Tax Secured Revenue, Sub-Series E-1, 5.00%, 2/01/42

     1,240        1,412,928   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43

     5,400        6,201,923   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51

     3,250        3,854,370   

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

     2,910        3,115,049   
    

 

 

 
               20,311,131   

North Carolina — 0.5%

    

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

     800        899,680   

Ohio — 4.2%

    

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

     6,974        8,065,188   

 

See Notes to Financial Statements.

 

                
42    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

   Par  
(000)
    Value  

Tennessee — 1.4%

    

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

   $ 2,500      $ 2,728,750   

Texas — 3.0%

    

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

     3,360        3,837,691   

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

     1,710        1,943,005   
    

 

 

 
               5,780,696   

Utah — 0.8%

    

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

     1,395        1,568,278   

Virginia — 2.5%

    

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

     2,729        3,121,822   

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

     1,553        1,722,559   
    

 

 

 
               4,844,381   

Washington — 0.8%

    

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

     1,365        1,540,619   

Wisconsin — 1.7%

    

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

     $  2,859      $ 3,173,094   

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 53.4%

             102,166,484   
Total Long-Term Investments
(Cost — $267,792,680) — 156.8%
             300,116,464   
    
                  
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.03% (f)(g)

     1,169,756        1,169,756   
Total Short-Term Securities
(Cost — $1,169,756) — 0.6%
             1,169,756   
Total Investments (Cost—$268,962,436) — 157.4%        301,286,220   
Other Assets Less Liabilities — 0.7%        1,465,396   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (29.4)%

   

    (56,385,972
VMTP Shares, at Liquidation Value — (28.7)%        (55,000,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 191,365,644   
    

 

 

 
Notes to Schedule of Investments

 

(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

 

City Securities

     $ 948,155         $ 7,570   

JPMorgan Chase & Co

     $ 1,832,483         $ 22,103   

 

(c)   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.

 

(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)   All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from October 1, 2016 to February 15, 2031, is $6,439,554.

 

(f)   Investments in issuers considered to be an affiliate of the Fund during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliate      Shares Held
at April 30,
2012
       Net
Activity
       Shares Held
at April 30,
2013
       Income  

FFI Institutional Tax-Exempt Fund

       27,550           1,142,206           1,169,756         $ 76   

 

(g)   Represents the current yield as of report date.

 

Ÿ  

Financial futures contracts as of April 30, 2013 were as follows:

 

Contracts Sold     Issue   Exchange   Expiration   Notional
Value
    Unrealized
Depreciation
 
  (90   10-Year US Treasury Note   Chicago Board of Trade   June 2013   $ 12,002,344      $ (159,993

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access

 

Ÿ  

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)

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    43


Table of Contents

Schedule of Investments (concluded)

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

 

Ÿ  

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. 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 is not necessarily an indication of the risks associated with 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 Note 1 of the Notes to Financial Statement.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 300,116,464                   $ 300,116,464   

Short-Term Securities

  $ 1,169,756                               1,169,756   
 

 

 

      

 

 

      

 

 

      

 

 

 

Total

  $ 1,169,756         $ 300,116,464                   $ 301,286,220   
 

 

 

      

 

 

      

 

 

      

 

 

 

 

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

      

     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments2             

Liabilities:

                

Interest rate contracts

  $ (159,993                          $ (159,993

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

 

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

      

   

     Level 1        Level 2        Level 3        Total  

Assets:

                

Cash

  $ 940,609                             $ 940,609   

Cash pledged for financial futures contracts

    119,000                               119,000   

Liabilities:

                

TOB trust certificates

            $ (56,354,474                  (56,354,474

VMTP Shares

              (55,000,000                  (55,000,000
 

 

 

      

 

 

      

 

 

      

 

 

 

Total

  $ 1,059,609         $ (111,354,474                $ (110,294,865
 

 

 

      

 

 

      

 

 

      

 

 

 

There were no transfers between levels during the year ended April 30, 2013.

 

See Notes to Financial Statements.

 

                
44    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments April 30, 2013

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Alabama — 3.2%

    

Alabama Incentives Financing Authority, RB, Series A, 5.00%, 9/01/42

   $ 990      $ 1,108,196   

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

     2,330        2,773,213   

Birmingham Water Works Board, RB, Series B:

    

5.00%, 1/01/38

     530        596,102   

5.00%, 1/01/43

     1,095        1,224,889   

Selma IDB, RB, International Paper Company Project, Series A, 5.38%, 12/01/35

     565        625,076   
    

 

 

 
               6,327,476   

California — 18.4%

    

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

     2,895        3,386,455   

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

     1,730        2,140,097   

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

     1,325        1,521,074   

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

    

5.50%, 3/01/30

     2,400        2,745,816   

5.75%, 3/01/34

     2,180        2,516,745   

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

     1,605        1,849,666   

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

     2,100        2,433,501   

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

     1,000        1,203,670   

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

     1,575        1,801,863   

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

     1,825        2,032,484   

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

     1,335        1,590,225   

San Bernardino Community College District, GO, Election of 2002, Series A, 6.25%, 8/01/18 (a)

     1,250        1,595,600   

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

    

5.50%, 12/01/24

     2,635        1,404,455   

5.57%, 12/01/25

     2,355        1,179,360   

5.63%, 12/01/26

     2,355        1,107,439   

State of California, GO, Various Purpose, 5.00%, 4/01/37

     2,500        2,843,375   

State of California, GO, Refunding, Various Purpose, 5.00%, 9/01/41

     2,765        3,073,076   

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

     1,850        2,175,489   
    

 

 

 
               36,600,390   

Colorado — 1.6%

    

City & County of Denver Colorado, Refunding ARB, Aviation Airport System Revenue, Series B, 5.00%, 11/15/37

     910        1,034,142   

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

     1,900        2,249,980   
    

 

 

 
               3,284,122   

District of Columbia — 1.2%

    

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

     2,000        2,337,080   

Florida — 11.8%

    

City of Jacksonville Florida, Refunding RB, Better Jacksonville, Series A, 5.00%, 10/01/30

     2,135        2,467,889   

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

     1,500        1,672,815   

Florida (concluded)

    

Jacksonville Florida Port Authority, Refunding RB, AMT, 5.00%, 11/01/38

   $ 1,265      $ 1,375,662   

JEA Electric System Revenue, Refunding RB, Sub-Series C, 5.00%, 10/01/37 (c)

     3,415        3,881,660   

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

     4,645        5,333,761   

Orlando-Orange County Expressway Authority, Refunding RB, 5.00%, 7/01/35

     1,750        1,987,335   

Tampa-Hillsborough County Expressway Authority, Refunding RB, Series B, 5.00%, 7/01/42

     2,020        2,250,785   

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

     3,995        4,633,521   
    

 

 

 
               23,603,428   

Georgia — 1.9%

    

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

     3,500        3,709,615   

Illinois — 12.9%

    

Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39

     2,000        2,283,220   

Chicago Transit Authority, RB:

    

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

     2,000        2,321,760   

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

     635        728,440   

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

     1,810        2,070,513   

City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien:

    

Series A, 5.75%, 1/01/39

     1,145        1,345,524   

Series C, 6.50%, 1/01/41

     5,225        6,768,204   

City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A, 5.25%, 1/01/38

     1,795        2,064,250   

City of Chicago Illinois Waterworks Revenue, Refunding RB, Second Lien, 5.00%, 11/01/42

     1,425        1,613,770   

Cook County Forest Preserve District, GO, Series C, 5.00%, 12/15/32

     580        664,007   

Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/32

     270        309,107   

Illinois Finance Authority, Refunding RB, Northwestern Memorial Healthcare, 5.00%, 8/15/37

     455        519,965   

Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38 (c)

     1,490        1,684,996   

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Project, Series B, 5.00%, 12/15/28

     1,045        1,215,252   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     1,405        1,717,219   

6.00%, 6/01/28

     400        488,476   
    

 

 

 
               25,794,703   

Indiana — 3.9%

    

Indiana Finance Authority, RB, Private Activity, Ohio River Bridges, 5.00%, 7/01/40

     565        602,064   

Indiana Finance Authority Waste Water Utility, RB, CWA Authority, First Lien, Series A, 5.00%, 10/01/41

     1,855        2,118,799   

Indianapolis Local Public Improvement Bond Bank, RB, Series F, 5.25%, 2/01/36

     3,055        3,531,763   

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

     1,430        1,616,644   
    

 

 

 
               7,869,270   

Kansas — 1.2%

    

Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, 5.00%, 11/15/32

     2,130        2,456,018   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    45


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Louisiana — 0.3%

    

Louisiana State University & Agricultural & Mechanical College, RB, 5.00%, 7/01/37

   $ 450      $ 513,522   

Massachusetts — 0.4%

    

Massachusetts Development Finance Agency, RB, Wellesley College, Series J, 5.00%, 7/01/42

     675        783,668   

Michigan — 4.7%

    

City of Detroit Michigan, Refunding RB, Sewage Disposal System, Senior Lien (AGM):

    

Series B, 7.50%, 7/01/33

     750        929,212   

Series C-1, 7.00%, 7/01/27

     4,810        5,901,245   

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

     1,910        2,447,035   
    

 

 

 
               9,277,492   

Minnesota — 0.8%

    

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

     1,325        1,622,463   

Mississippi — 2.6%

    

Mississippi Development Bank, Refunding RB:

    

Jackson Mississippi Water and Sewer,
Series A (AGM), 5.00%, 9/01/30

     2,940        3,415,574   

Jackson Public School District Project, 5.00%, 4/01/28

     1,500        1,711,455   
    

 

 

 
               5,127,029   

Nevada — 2.4%

    

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

     1,500        1,787,340   

County of Clark Nevada, ARB:

    

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

     1,410        1,590,424   

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

     1,360        1,415,760   
    

 

 

 
               4,793,524   

New Jersey — 9.7%

    

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

     3,575        3,747,315   

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

     2,100        2,333,583   

New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/38

     1,000        1,120,910   

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

    

Series A, 5.50%, 6/15/41

     1,780        2,086,089   

Series A, 5.00%, 6/15/42

     1,500        1,665,735   

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

     3,170        3,782,539   

Series B, 5.25%, 6/15/36

     1,000        1,142,540   

South Jersey Transportation Authority, Refunding RB, Transportation System, Series A:

    

5.00%, 11/01/27

     2,000        2,325,600   

5.00%, 11/01/28

     1,000        1,157,140   
    

 

 

 
               19,361,451   

New York — 7.0%

    

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

     2,510        2,979,997   

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

    

Fiscal 2009, 5.25%, 6/15/40

     3,410        3,952,940   

Water & Sewer System, Second General Resolution, 5.38%, 6/15/43

     1,305        1,540,618   

New York (concluded)

    

New York State Dormitory Authority, RB, Series B:

    

5.00%, 3/15/37

   $ 1,740      $ 1,996,180   

5.00%, 3/15/42

     2,000        2,282,800   

New York State Thruway Authority, Refunding RB, Series I, 5.00%, 1/01/37

     1,050        1,184,432   
    

 

 

 
               13,936,967   

North Carolina — 1.2%

    

North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/32

     2,045        2,392,936   

Ohio — 1.2%

    

Ohio State University, RB, Special Purpose General Receipts, Series A, 5.00%, 6/01/38

     2,095        2,429,592   

Pennsylvania — 1.5%

    

Pennsylvania Turnpike Commission, RB, Motor License Fund-Enhanced:

    

5.00%, 12/01/33

     1,670        1,898,690   

5.00%, 12/01/36

     565        640,885   

5.00%, 12/01/38

     480        539,438   
    

 

 

 
               3,079,013   

Puerto Rico — 1.2%

    

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

     2,115        2,384,070   

South Carolina — 2.0%

    

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

    

5.00%, 12/01/29

     1,575        1,871,431   

5.00%, 12/01/30

     1,810        2,139,818   
    

 

 

 
               4,011,249   

Texas — 22.9%

    

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

     2,500        2,847,150   

City of Brownsville Texas Utilities System Revenue, Refunding RB, Series A, 5.00%, 9/01/29

     1,240        1,450,602   

City of Houston, GO, Refunding, Public Improvement, Series A, 5.00%, 3/01/38 (c)

     795        919,266   

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

     4,000        4,837,840   

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

     2,600        2,993,718   

Dallas/Fort Worth International Airport, ARB, Series H, AMT, 5.00%, 11/01/42

     3,365        3,578,072   

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18 (a)

     600        802,488   

Houston Community College System, GO, 5.00%, 2/15/36

     795        924,887   

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

     4,250        5,052,485   

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

    

5.75%, 1/01/40

     4,885        5,580,429   

Series A, 5.63%, 1/01/33

     6,585        7,501,961   

Series B, 5.75%, 1/01/40

     6,275        7,201,127   

Series B, 5.00%, 1/01/42

     1,020        1,133,516   

Texas Transportation Commission, Refunding RB, First Tier, Series A, 5.00%, 8/15/41

     670        730,220   
    

 

 

 
               45,553,761   

 

See Notes to Financial Statements.

 

                
46    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Utah — 2.0%

    

Utah Transit Authority, Refunding RB, Sales Tax Revenue, Series 2012, 5.00%, 6/15/42

   $ 3,500      $ 3,959,515   

Virginia — 1.5%

    

Fairfax County IDA, RB, Series A, 5.00%, 5/15/40

     1,045        1,192,533   

Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/18 (a)

     1,300        1,701,583   
    

 

 

 
               2,894,116   

Washington — 4.2%

    

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

     1,375        1,598,878   

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

     1,075        1,263,082   

Washington Higher Education Facilities Authority, Refunding RB, The University of Puget Sound Project, Series A, 5.00%, 10/01/42

     5,000        5,525,400   
    

 

 

 
               8,387,360   

Wisconsin — 1.3%

    

Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Alliance, Series D, 5.00%, 11/15/41

     1,880        2,117,669   

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc. Obligated Group, Series A, 5.00%, 4/01/42

     475        530,124   
    

 

 

 
               2,647,793   
Total Municipal Bonds – 123.0%              245,137,623   
    
   

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

 

Alabama — 1.2%

    

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

     2,120        2,290,787   

California — 2.3%

    

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

     3,149        3,513,543   

University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37

     1,000        1,148,845   
    

 

 

 
               4,662,388   

Colorado — 3.1%

    

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

     5,610        6,183,061   

District of Columbia — 0.6%

    

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

     1,040        1,255,627   

Florida — 7.7%

    

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

     4,302        4,633,693   

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

     7,500        8,849,100   

County of Miami-Dade Florida, Refunding RB, Transit System, Sales Surtax Revenue, 5.00%, 7/01/42

     1,000        1,126,770   

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

     600        632,910   
    

 

 

 
               15,242,473   

Illinois — 1.4%

    

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

   $ 2,509      $ 2,885,168   

Kentucky — 0.8%

    

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

     1,406        1,645,930   

Massachusetts — 6.2%

    

Massachusetts School Building Authority, RB:

    

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

     3,060        3,531,454   

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

     1,032        1,124,451   

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

     6,976        7,601,256   
    

 

 

 
               12,257,161   

Nevada — 5.3%

    

Clark County Water Reclamation District, GO:

    

Limited Tax, 6.00%, 7/01/38

     5,000        6,010,200   

Series B, 5.50%, 7/01/29

     3,749        4,580,004   
    

 

 

 
               10,590,204   

New Jersey — 1.3%

    

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

     2,291        2,539,315   

New York — 10.4%

    

New York City Municipal Water Finance Authority, Refunding RB, Series FF, 5.00%, 6/15/45

     2,379        2,693,623   

New York City Transitional Finance Authority, RB:

    

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

     1,400        1,616,160   

Future Tax Secured, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42

     1,760        2,005,446   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43

     4,530        5,202,725   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51

     2,660        3,154,654   

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

     5,325        6,034,929   
    

 

 

 
               20,707,537   

Puerto Rico — 1.0%

    

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

     1,820        1,971,843   

Texas — 1.8%

    

Waco Educational Finance Corp., Refunding RB, Baylor University, 5.00%, 3/01/43

     3,255        3,665,358   

Utah — 0.6%

    

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

     1,005        1,129,834   

Washington — 3.8%

    

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

     4,002        4,331,598   

University of Washington, Refunding RB, Series A, 5.00%, 7/01/41

     2,819        3,268,427   
    

 

 

 
               7,600,025   

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 47.5%

  

  

    94,626,711   

Total Long-Term Investments

(Cost — $310,834,521) — 170.5%

  

  

    339,764,334   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    47


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Short-Term Securities    Shares     Value  

Money Market Funds — 1.7%

    

FFI Institutional Tax-Exempt Fund, 0.03% (f)(g)

     3,309,474      $ 3,309,474   

Total Short-Term Securities

(Cost — $3,309,474) — 1.7%

             3,309,474   
Total Investments (Cost — $314,143,995) — 172.2%        343,073,808   
Liabilities in Excess of Other Assets — (3.9)%        (7,880,213

Liability for TOB Trust Certificates, Including
Interest Expense and Fees Payable — (24.6)%

   

    (48,957,771
VMTP Shares, at Liquidation Value — (43.7)%        (87,000,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 199,235,824   
    

 

 

 

 

Notes to Schedule of investments

 

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

 

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

 

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

 

Counterparty      Value       

Unrealized

Appreciation

 

Apex Pryor Securities

     $ 919,266         $ 9,143   

JPMorgan Chase & Co

     $ 1,684,996         $ 17,642   

Wells Fargo & Co

     $ 7,892,909         $ 74,892   

 

(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)   All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire on October 1, 2016, is $811,832.

 

(f)   Investments in issuers considered to be an affiliate of the Fund during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 act, were as follows:

 

Affiliate      Shares Held
at April 30,
2012
       Net
Activity
       Shares Held
at April 30,
2013
       Income  

FFI Institutional Tax-Exempt Fund

       22,670           3,286,804           3,309,474         $ 143   

 

(g)   Represents the current yield as of report date.

 

Ÿ  

Financial futures contracts as of April 30, 2013 were as follows:

 

Contracts Sold     Issue   Exchange   Expiration   Notional
Value
    Unrealized
Depreciation
 
  (186   10-Year US Treasury Note   Chicago Board of Trade   June 2013   $ 24,804,844      $ (251,787

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access

 

Ÿ  

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)

 

Ÿ  

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. 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 is not necessarily an indication of the risks associated with 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 Note 1 of the Notes to Financial Statements.

 

See Notes to Financial Statements.

 

                
48    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (concluded)

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 339,764,334              $ 339,764,334   

Short-Term Securities

  $ 3,309,474                          3,309,474   
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 3,309,474         $ 339,764,334              $ 343,073,808   
 

 

 

      

 

 

      

 

    

 

 

 

 

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

      

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments2             

Liabilities:

                

Interest rate contracts

  $ (251,787                     $ (251,787

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

 

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

      

   

     Level 1        Level 2        Level 3      Total  

Assets:

                

Cash pledged for financial futures contracts

  $ 246,000                        $ 246,000   

Liabilities:

                

TOB trust certificates

            $ (48,934,200             (48,934,200

VMTP Shares

              (87,000,000             (87,000,000
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 246,000         $ (135,934,200           $ (135,688,200
 

 

 

      

 

 

      

 

    

 

 

 

There were no transfers between levels during the year ended April 30, 2013.

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    49


Table of Contents

Schedule of Investments April 30, 2013

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 2.7%

    

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

   $ 5,024      $ 5,492,865   

County of Jefferson Alabama, RB, Limited Obligation School, Series A:

    

5.50%, 1/01/21

     5,500        5,507,590   

5.25%, 1/01/23

     6,500        6,487,325   
    

 

 

 
               17,487,780   

Arizona — 5.0%

    

Arizona Board of Regents, University of Arizona, RB, 5.00%, 8/01/28

     2,000        2,351,120   

Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 2/01/30

     2,685        2,935,403   

City of Tucson Arizona, COP (AGC):

    

4.25%, 7/01/21

     1,870        2,072,932   

4.25%, 7/01/22

     1,895        2,094,335   

City of Tucson Arizona, COP, Refunding (AGC), 4.00%, 7/01/20

     2,325        2,624,181   

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

     1,700        1,401,106   

Northern Arizona University, RB, 5.00%, 6/01/41

     1,250        1,382,875   

Phoenix Mesa Gateway Airport Authority, RB, Mesa Project, AMT:

    

5.00%, 7/01/27

     700        774,774   

5.00%, 7/01/32

     1,925        2,082,196   

Pima County IDA, RB, Charter Schools Project:

    

Series C, 6.70%, 7/01/21

     950        951,967   

Series K, 6.38%, 7/01/31

     895        895,707   

Pima County IDA, Refunding RB, Tucson Electric Power Co., San Juan, Series A, 4.95%, 10/01/20

     2,325        2,641,060   

Pinal County Electric District No. 3, Refunding RB, 5.00%, 7/01/25

     1,600        1,844,048   

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

     4,000        4,636,840   

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

     2,050        2,266,890   

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

     1,000        1,117,010   
    

 

 

 
               32,072,444   

Arkansas — 0.2%

    

University of Arkansas, Refunding RB, Various Facility, Series A, 5.00%, 11/01/31

     1,000        1,198,700   

California — 4.3%

    

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.00%, 8/15/22

     2,135        2,569,558   

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

     460        466,849   

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

     540        548,041   

California Pollution Control Financing Authority, RB:

    

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

     1,240        1,323,130   

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

     605        681,684   

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

     5,000        5,584,600   

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

     2,990        3,038,856   

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

     2,000        2,264,500   

California (concluded)

    

State of California, GO, Various Purpose:

    

5.50%, 4/01/28

   $ 15      $ 15,646   

5.75%, 4/01/31

     7,000        8,295,140   

5.00%, 11/01/32

     2,000        2,247,640   
    

 

 

 
               27,035,644   

Colorado — 0.8%

    

Plaza Metropolitan District No. 1 Colorado, Tax Allocation Bonds, Public Improvement Fee, Tax Increment, 7.50%, 6/01/14 (b)

     4,500        4,887,405   

Connecticut — 2.2%

    

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

     1,160        1,240,110   

Connecticut State Health & Educational Facility Authority, Refunding RB:

    

Connecticut College, Series I, 5.00%, 7/01/29

     1,075        1,256,524   

Connecticut College, Series I, 5.00%, 7/01/31

     620        719,814   

Connecticut College, Series I, 5.00%, 7/01/32

     500        577,025   

Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/31

     1,780        1,992,354   

State of Connecticut, GO, Series B, 5.00%, 4/15/31

     6,990        8,225,133   
    

 

 

 
               14,010,960   

Delaware — 0.9%

    

Delaware State Municipal Electric Corp., Refunding RB, 5.00%, 7/01/37

     5,000        5,585,150   

Florida — 9.0%

    

Broward County Florida Airport System, RB, Series Q-2, AMT, 5.00%, 10/01/32

     1,250        1,385,550   

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

     10,000        11,792,200   

County of Lee Florida, Refunding ARB, Series A, AMT:

    

5.50%, 10/01/23

     1,000        1,193,200   

(AGM), 5.00%, 10/01/27

     1,635        1,825,690   

County of Miami-Dade Florida, Refunding RB,
Series C (BHAC), 5.00%, 10/01/23

     8,000        9,436,720   

County of Miami-Dade Florida Transit System, Refunding RB, Sales Tax:

    

5.00%, 7/01/32

     1,500        1,718,160   

5.00%, 7/01/33

     3,000        3,420,930   

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

    

5.00%, 10/01/25

     1,000        1,152,030   

5.00%, 10/01/26

     2,935        3,351,799   

Highlands County Health Facilities Authority, Refunding RB, Adventist Health, Series G, 5.13%, 11/15/16 (b)

     35        40,502   

JEA Electric System, Refunding RB, Sub-Series B, 5.00%, 10/01/34

     4,615        5,209,227   

Miami-Dade County Expressway Authority, Refunding RB, Series A, 5.00%, 7/01/26

     4,000        4,693,040   

Midtown Miami Community Development District, Special Assessment Bonds:

    

Series A, 6.00%, 5/01/24

     2,710        2,745,447   

Series B, 6.50%, 5/01/37

     1,840        1,872,973   

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

     985        995,017   

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

     2,390        2,440,955   

Sterling Hill Community Development District, Refunding RB, Special Assessment Bonds, Series B, 5.50%, 11/01/2010 (c)

     155        100,761   

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

     4,000        4,002,480   
    

 

 

 
               57,376,681   

 

See Notes to Financial Statements.

 

                
50    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Georgia — 1.1%

    

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

   $ 3,000      $ 3,418,500   

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

    

4.00%, 8/01/23

     1,500        1,646,625   

4.13%, 8/01/24

     2,000        2,188,580   
    

 

 

 
               7,253,705   

Guam — 0.4%

    

Territory of Guam, RB, Section 30, Series A, 5.38%, 12/01/24

     2,100        2,334,213   

Hawaii — 0.9%

    

State of Hawaii, Refunding ARB, Series A, 5.25%, 7/01/29

     5,000        5,825,850   

Idaho — 0.6%

    

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

     3,700        4,015,499   

Illinois — 8.6%

    

Chicago Transit Authority, RB, 5.25%, 12/01/31

     3,700        4,307,688   

City of Chicago Illinois, GARB, Third Lien, O’Hare International Airport, Series B-2, AMT (AGM), 5.75%, 1/01/23

     8,130        8,398,615   

Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/34 (d)

     9,140        10,400,772   

Madison, Macoupin, Etc. Counties Community College District No. 536, GO, Refunding, Lewis & Clark Community College:

    

5.00%, 5/01/29

     350        393,446   

5.00%, 5/01/30

     475        531,102   

5.00%, 5/01/31

     500        556,725   

5.00%, 5/01/32

     500        553,420   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     3,500        4,277,770   

6.25%, 6/01/24

     12,750        14,338,777   

State of Illinois, GO, Refunding, 5.00%, 8/01/21

     3,000        3,525,690   

Village of Hodgkins Illinois, RB, MBM Project, AMT, 5.90%, 11/01/17

     6,000        6,009,540   

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

     1,425        1,433,835   
    

 

 

 
               54,727,380   

Indiana — 4.0%

    

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

     4,800        5,957,904   

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

     2,000        2,363,440   

Indiana Finance Authority, Refunding RB, Environmental Improvement, United Steel Corp. Project, 6.00%, 12/01/19

     5,000        5,505,400   

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

     10,000        11,834,300   
    

 

 

 
               25,661,044   

Iowa — 1.0%

    

Iowa Higher Education Loan Authority, RB, Private College Facility:

    

5.25%, 4/01/23

     695        828,245   

5.25%, 4/01/24

     730        861,772   

5.25%, 4/01/25

     520        609,518   

5.25%, 4/01/26

     360        419,123   

Iowa (concluded)

    

Iowa Higher Education Loan Authority, Refunding RB, Private College Facility:

    

5.00%, 9/01/20

   $ 1,000      $ 1,161,970   

5.00%, 9/01/22

     2,315        2,621,020   
    

 

 

 
               6,501,648   

Kansas — 2.1%

    

Kansas Development Finance Authority, RB, KU Health System, Series H:

    

5.00%, 3/01/26

     3,220        3,569,789   

5.00%, 3/01/27

     3,905        4,312,330   

Kansas Development Finance Authority, Refunding RB:

    

Adventist Health, 5.00%, 11/15/23

     1,500        1,772,190   

Sisters of Leavenworth, Series A, 4.00%, 1/01/22

     3,425        3,800,928   
    

 

 

 
               13,455,237   

Kentucky — 3.1%

    

Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 5.25%, 6/01/23

     8,650        9,935,996   

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

     8,000        9,515,600   
    

 

 

 
               19,451,596   

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        3,430,740   

Louisiana Local Government Environmental Facilities & Community Development Authority, Refunding RB, BRCC Facilities Corp. Project:

    

5.00%, 12/01/27

     3,445        4,037,471   

5.00%, 12/01/28

     3,715        4,334,848   

Louisiana Public Facilities Authority, RB, Nineteenth Judicial District Court (NPFGC), 5.50%, 6/01/41

     2,000        2,157,000   

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

     2,000        2,154,940   

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

     850        1,015,240   

Parish of St. Charles Louisiana Gulf Opportunity Zone, RB, Valero Energy Corp. Project, 4.00%, 12/01/40 (a)

     1,760        1,943,233   

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

     3,500        3,508,680   
    

 

 

 
               22,582,152   

Maine — 0.3%

    

Portland New Public Housing Authority Maine, Refunding RB, Senior Living, Series A, 6.00%, 2/01/34

     1,965        2,021,160   

Maryland — 0.7%

    

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

     1,750        2,033,622   

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

     790        882,154   

Maryland Health & Higher Educational Facilities Authority, RB, Johns Hopkins Health System, Series B, 5.00%, 7/01/33

     1,140        1,322,537   

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

     500        520,630   
    

 

 

 
               4,758,943   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    51


Table of Contents

Schedule of Investments (continued)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Massachusetts — 0.2%

    

Massachusetts Health & Educational Facilities Authority, Refunding RB, Winchester Hospital, 5.00%, 7/01/25

   $ 1,060      $ 1,179,897   

Michigan — 3.4%

    

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

     4,235        4,877,322   

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

     1,000        1,181,380   

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

     2,500        2,982,325   

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

     4,900        5,646,613   

State of Michigan Trunk Line, RB, 5.00%, 11/15/31

     2,000        2,350,460   

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

     4,000        4,354,760   
    

 

 

 
               21,392,860   

Minnesota — 0.6%

    

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

     2,300        2,642,585   

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

     1,000        1,164,270   
    

 

 

 
               3,806,855   

Mississippi — 0.8%

    

Mississippi Business Finance Corp., Refunding RB, System Energy Resource, Inc. Project, 5.88%, 4/01/22

     5,000        5,015,450   

Missouri — 2.6%

    

Missouri Development Finance Board, RB, St. Joseph Sewage System Improvements, Series E, 4.75%, 5/01/26

     750        791,085   

Missouri Joint Municipal Electric Utility Commission Power, RB, Prairie State Project, Series A (BHAC), 5.00%, 1/01/32

     5,000        5,575,000   

Missouri State Environmental Improvement & Energy Resources Authority, Refunding RB, Revolving Funds Program, Series A, 5.00%, 1/01/25

     3,150        3,918,505   

Missouri State Health & Educational Facilities Authority, Refunding RB, SSM Health Care, Series B, 4.25%, 6/01/25

     5,975        6,567,541   
    

 

 

 
               16,852,131   

Montana — 0.5%

    

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

     2,625        3,025,759   

Nebraska — 0.9%

    

Douglas County School District No. 17 Nebraska, GO, Refunding, 2.00%, 6/15/25

     4,380        4,320,257   

Lancaster County Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, 5.50%, 1/01/30

     1,000        1,127,500   
    

 

 

 
               5,447,757   

Nevada — 0.7%

    

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

     3,800        4,242,168   

New Hampshire — 0.6%

    

New Hampshire State Turnpike System, RB, Series C, 4.00%, 8/01/30

     3,765        4,029,378   

New Jersey — 15.5%

    

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

     2,000        2,336,840   

Garden State Preservation Trust, RB, Election of 2005, Series A (AGM), 5.80%, 11/01/15 (b)

     5,050        5,719,378   

New Jersey (concluded)

    

New Jersey EDA, RB:

    

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

   $ 6,040      $ 6,344,778   

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

     5,000        5,241,000   

New Jersey EDA, Refunding RB:

    

5.00%, 3/01/29

     6,500        7,569,835   

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

     3,000        3,281,430   

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

     3,850        4,240,044   

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

     3,465        4,142,269   

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

     635        693,572   

New Jersey Higher Education Student Assistance Authority, Refunding RB:

    

Series 1, AMT, 5.50%, 12/01/26

     1,665        1,889,242   

Series 1, AMT, 5.00%, 12/01/27

     12,000        12,981,840   

Series 1A, 4.75%, 12/01/21

     2,370        2,683,172   

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

     2,215        2,357,956   

New Jersey State Turnpike Authority, Refunding RB, Series B, 5.00%, 1/01/29

     10,000        11,658,400   

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

    

CAB, Series C (AMBAC), 3.91%, 12/15/25 (e)

     9,450        5,796,819   

Series A, 5.25%, 6/15/24

     3,185        3,869,011   

Series B, 5.50%, 6/15/31

     12,190        14,459,412   

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

     1,375        1,552,169   

State of New Jersey, GO, Refunding, Series O, 5.25%, 8/01/21

     1,355        1,718,438   
    

 

 

 
               98,535,605   

New Mexico — 0.2%

    

New Mexico State University, Refunding RB, Series B, 5.00%, 4/01/25

     850        1,039,839   

New York — 18.7%

    

City of New York, New York, GO, Series D1, 5.13%, 12/01/26

     4,615        5,409,611   

City of New York, New York, GO, Refunding:

    

Series B, 5.00%, 8/01/30

     2,210        2,611,712   

Series E, 5.00%, 8/01/27

     3,500        4,209,940   

Essex County Industrial Development Agency, Refunding RB, International Paper, Series A, AMT, 5.20%, 12/01/23

     5,000        5,418,350   

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

     4,250        5,045,812   

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

     1,000        1,195,540   

Metropolitan Transportation Authority, RB:

    

Sub-Series B-1, 5.00%, 11/15/24

     2,300        2,810,255   

Sub-Series B-4, 5.00%, 11/15/24

     1,500        1,832,775   

Transportation, Series A, 5.00%, 11/15/25

     1,980        2,227,916   

Metropolitan Transportation Authority, Refunding RB:

    

Series B, 5.25%, 11/15/25

     4,000        4,844,080   

Series F, 5.00%, 11/15/30

     1,460        1,690,213   

New York City Industrial Development Agency, RB, Continental Airlines, Inc. Project, Mandatory Put Bonds, AMT, 8.38%, 11/01/16 (a)

     3,500        3,519,565   

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

     1,740        1,910,120   

 

See Notes to Financial Statements.

 

                
52    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

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)

    

New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-3, 5.00%, 1/15/23

   $ 3,560      $ 4,244,517   

New York City Trust for Cultural Resources, Refunding RB, Carnegie Hall, Series A, 5.00%, 12/01/29

     2,750        3,227,592   

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        3,465,300   

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

     6,900        7,828,188   

New York State Dormitory Authority, RB:

    

Education, Series D, 5.00%, 9/15/16 (b)

     5        5,756   

Education, Series D, 5.00%, 3/15/31

     4,495        5,022,533   

Fordham University, Series A, 5.25%, 7/01/25

     900        1,081,836   

Mental Health Services (AGM), 5.00%, 8/15/18 (b)

     10        12,129   

Mental Health Services (AGM), 5.00%, 2/15/22

     3,990        4,706,484   

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

     1,000        1,163,590   

New York University Hospital Center, Series A, 5.00%, 7/01/22

     1,725        2,027,444   

New York University Hospital Center, Series A, 5.13%, 7/01/23

     1,670        1,947,120   

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

     1,495        1,698,918   

North Shore-Long Island Jewish Health System, Series D, 5.00%, 5/01/39

     1,600        1,790,528   

School Districts Financing Program, Series C, 5.00%, 10/01/24

     3,165        3,831,992   

New York State Dormitory Authority, Refunding RB:

    

Mount Sinai Hospital, Series A, 4.25%, 7/01/23

     2,225        2,449,903   

North Shore-Long Island Jewish Health System, Series E, 5.00%, 5/01/22

     650        747,097   

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

     2,160        2,450,261   

Yeshiva University, 4.00%, 9/01/23

     2,860        3,146,229   

Yeshiva University, 4.25%, 9/01/24

     2,750        3,045,020   

New York State Thruway Authority, RB, General, Series I, 5.00%, 1/01/24

     3,000        3,672,870   

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

     2,475        2,846,596   

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

    

Consolidated, 152nd Series, AMT, 5.00%, 11/01/23

     1,000        1,145,100   

Consolidated, 153rd Series, 5.00%, 7/15/24

     2,010        2,352,082   

Triborough Bridge & Tunnel Authority, Refunding RB, Sub-Series A, 5.00%, 11/15/24

     2,000        2,459,300   

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

     2,985        3,289,948   

Westchester County Healthcare Corp. New York, Refunding RB, Senior-Lien, Series A, 5.00%, 11/01/24

     5,470        6,280,490   
    

 

 

 
               118,664,712   

North Carolina — 1.6%

    

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

     4,000        4,557,000   

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

     2,105        1,963,649   

North Carolina Medical Care Commission, Refunding RB:

    

Vidant Health, Series A, 5.00%, 6/01/36

     1,500        1,649,265   

WakeMed, Series A, 5.00%, 10/01/31

     1,500        1,723,305   
    

 

 

 
               9,893,219   

Ohio — 0.5%

    

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

   $ 900      $ 966,753   

Kent State University, RB, General Receipts, Series A, 5.00%, 5/01/37

     1,000        1,133,980   

Miami University, RB, General Receipts, 4.00%, 9/01/33

     1,000        1,054,990   
    

 

 

 
               3,155,723   

Oregon — 1.8%

    

City of Tigard Washington County Oregon, Refunding RB, Water System, 5.00%, 8/01/37

     2,000        2,314,000   

Oregon Health & Science University, Refunding RB:

    

Series A, 5.00%, 7/01/26

     1,500        1,787,925   

Series E, 5.00%, 7/01/32

     1,250        1,441,475   

Oregon State Facilities Authority, Refunding RB, Reed College Project, Series A, 5.00%, 7/01/29

     1,835        2,123,902   

State of Oregon, GO:

    

Odot Project, Tax-Exempt, Series I, 5.00%, 5/01/37

     1,000        1,175,740   

Series H, 5.00%, 5/01/36

     2,000        2,351,480   
    

 

 

 
               11,194,522   

Pennsylvania — 8.4%

    

City of Philadelphia Pennsylvania, RB, Series A, AMT (AGM), 5.00%, 6/15/20

     2,895        3,272,190   

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

     6,430        7,134,664   

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

     9,630        10,738,317   

County of Allegheny Pennsylvania, GO, Series C-67:

    

5.00%, 11/01/25

     2,700        3,148,146   

5.00%, 11/01/26

     2,375        2,716,691   

County of Allegheny Pennsylvania, GO, Refunding, Series C-68, 5.00%, 11/01/25

     2,515        2,932,440   

Montgomery County IDA Pennsylvania, MRB, Whitemarsh Continuing Care, 6.00%, 2/01/21

     3,500        3,574,515   

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

     7,710        7,709,537   

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

     4,000        4,534,160   

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

     6,225        7,412,543   
    

 

 

 
               53,173,203   

Puerto Rico — 4.1%

    

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

     3,215        3,285,248   

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

     6,500        6,512,870   

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

     3,000        3,608,430   

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

     9,450        10,085,134   

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.00%, 8/01/42

     650        711,464   

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

     2,000        2,166,820   
    

 

 

 
               26,369,966   

Rhode Island — 0.3%

    

Rhode Island Health & Educational Building Corp., RB, Providence College, 5.00%, 11/01/34

     1,750        1,978,708   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    53


Table of Contents

Schedule of Investments (continued)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

South Carolina — 0.2%

    

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

   $ 1,000      $ 1,112,890   

South Dakota — 0.2%

    

South Dakota Health & Educational Facilities Authority, Refunding RB, Regional Health, 5.00%, 9/01/25

     1,000        1,128,440   

Tennessee — 1.6%

    

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

     1,620        1,883,039   

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

     3,750        4,111,838   

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

    

Series A, 5.00%, 11/01/23

     2,695        3,119,813   

Series B, 5.00%, 11/01/22

     1,000        1,166,140   
    

 

 

 
               10,280,830   

Texas — 5.6%

    

City of Houston Texas, Refunding ARB, Subordinate Lien, Series A, AMT:

    

5.00%, 7/01/25

     1,500        1,731,150   

5.00%, 7/01/32

     1,010        1,130,433   

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

     4,000        4,007,440   

Dallas/Fort Worth International Airport, Refunding RB, AMT:

    

Series E, 5.00%, 11/01/26

     2,185        2,436,996   

Series E, 5.00%, 11/01/27

     4,960        5,489,728   

Series F, 5.00%, 11/01/31

     6,345        6,872,460   

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

     4,000        4,502,000   

Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, AMT, 5.00%, 11/01/28

     2,000        2,186,600   

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

     2,910        3,353,862   

Socorro ISD, GO, Refunding (PSF-GTD), School Building:

    

5.00%, 8/15/30

     1,000        1,187,400   

5.00%, 8/15/32

     2,500        2,960,500   
    

 

 

 
               35,858,569   

Vermont — 0.3%

    

Vermont Educational & Health Buildings Financing Agency, Refunding RB, Middlebury College Project, 5.00%, 11/01/32

     1,680        1,989,590   

Virginia — 1.7%

    

Roanoke EDA, Refunding RB, Carilion Health System, Series B (AGM), 5.00%, 7/01/38

     3,155        3,463,117   

Tobacco Settlement Financing Corp. Virginia, RB, Asset-Backed, 5.63%, 6/01/15 (b)

     5,000        5,540,500   

Virginia Small Business Financing Authority, RB, Senior Lien, Express Lanes LLC, AMT, 5.00%, 7/01/34

     1,560        1,627,907   
    

 

 

 
               10,631,524   

Washington — 1.3%

    

State of Washington, GO, Motor Vehicle Fuel Tax, Series E, 4.00%, 2/01/34

     8,000        8,559,920   

West Virginia — 2.7%

    

West Virginia Hospital Finance Authority, Refunding RB, Charleston, Series A, 5.13%, 9/01/23

     4,000        4,491,920   

West Virginia (concluded)

    

West Virginia University, RB, Board of Governors University Improvement, Series B:

    

5.00%, 10/01/29

   $ 7,520      $ 8,777,645   

5.00%, 10/01/30

     3,500        4,068,225   
    

 

 

 
               17,337,790   

Wisconsin — 3.3%

    

Public Finance Authority, Refunding RB, Senior Obligation Group, Series B, AMT, 5.25%, 7/01/28

     4,765        5,237,354   

State of Wisconsin, GO, Series C, 4.50%, 5/01/30

     6,120        6,922,210   

WPPI Energy, Refunding RB, Supply System, Series A:

    

5.00%, 7/01/32

     4,010        4,613,385   

5.00%, 7/01/33

     3,500        4,013,590   
    

 

 

 
               20,786,539   
Total Municipal Bonds – 129.7%              824,927,035   
    
   
Municipal Bonds Transferred to
Tender Option Bond Trusts (f)
 

California — 4.4%

    

Peralta Community College District, GO, Election of 2000, Series D (AGM), 5.00%, 8/01/30

     10,140        10,450,081   

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

     9,028        10,072,156   

University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37

     6,440        7,398,565   
    

 

 

 
               27,920,802   

Illinois — 3.8%

    

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

     8,650        10,139,350   

McHenry County Conservation District Illinois, GO (AGM), 5.13%, 2/01/27

     12,695        14,281,597   
    

 

 

 
               24,420,947   

Louisiana — 4.1%

    

State of Louisiana, GO, Series A, 5.00%, 8/01/24

     12,000        15,166,680   

State of Louisiana Gas & Fuels, Refunding RB, Series A-1, 4.00%, 5/01/34

     10,000        10,702,300   
    

 

 

 
               25,868,980   

Massachusetts — 3.3%

    

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare, Series L, 5.00%, 7/01/31

     10,175        11,734,905   

Massachusetts School Building Authority, RB, Series A (AGM):

    

5.00%, 8/15/15 (b)

     1,075        1,170,777   

5.00%, 8/15/30

     7,264        7,914,416   
    

 

 

 
               20,820,098   

Minnesota — 1.9%

    

State of Minnesota, GO, State Various Purpose, Series A, 4.00%, 8/01/29

     10,525        12,263,712   

New Jersey — 1.9%

    

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series D (AGM), 5.00%, 6/15/15 (b)

     11,120        12,191,968   

New York — 9.8%

    

City of New York, New York, GO:

    

Sub-Series B-1, 5.25%, 9/01/22

     8,250        9,931,432   

Sub-Series I-1, 5.50%, 4/01/21

     4,992        6,143,677   

 

See Notes to Financial Statements.

 

                
54    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)
  

Par  

(000)

    Value  

New York (concluded)

    

City of New York, New York, GO, Refunding, Series E, 5.00%, 8/01/24

   $ 3,990      $ 4,781,935   

New York City Municipal Water Finance Authority, Refunding RB, Water & Sewer System, Series A, 4.75%, 6/15/30

     8,000        8,925,440   

New York State Dormitory Authority, Refunding LRB, State University Dormitory Facilities, Series A, 5.00%, 7/01/42

     2,240        2,583,123   

New York State Urban Development Corp., RB, State Personal Income Tax, State Facilities,
Series A-1 (NPFGC), 5.25%, 3/15/14 (b)

     10,000        10,424,400   

New York State Urban Development Corp., Refunding RB, Service Contract, Series B, 5.00%, 1/01/21

     8,003        9,413,077   

Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/26

     5,530        6,524,571   

Suffolk County Water Authority, Refunding RB, New York Water System, 3.00%, 6/01/25

     3,242        3,387,908   
    

 

 

 
               62,115,563   

Washington — 1.8%

    

Snohomish County School District No. 15—Edmonds Washington, GO (NPFGC), 5.00%, 6/01/16 (b)

     10,000        11,375,800   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 31.0%
        196,977,870   
Total Long-Term Investments
(Cost — $937,482,986) — 160.7%
        1,021,904,905   

 

Short-Term Securities

  

Par  

(000)

    Value  

Connecticut — 0.3%

    

Connecticut Housing Finance Authority, Refunding RB, VRDN, Housing Mortgage Finance Program, Sub-Series A-2 (JPMorgan Chase NA SBPA), 0.18%, 5/03/13 (i)

     $         1,800      $ 1,800,000   
     

Shares

        

Money Market Funds — 0.6%

    

FFI Institutional Tax-Exempt Fund, 0.03% (g)(h)

     3,667,115        3,667,115   
Total Short-Term Securities
(Cost — $5,467,115) — 0.9%
        5,467,115   
Total Investments (Cost — $942,950,101) — 161.6%        1,027,372,020   
Other Assets Less Liabilities — 0.3%        1,377,179   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (16.7)%

   

    (105,996,800
VMTP Shares, at Liquidation Value — (45.2)%        (287,100,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 635,652,399   
    

 

 

 
Notes to Schedule of Investments

 

(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)   Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.

 

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

 

Counterparty      Value        Unrealized
Appreciation
 

JPMorgan Chase & Co

     $ 10,400,772         $ 61,238   

 

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

 

(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 issuers considered to be an affiliate of the Fund during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliate      Shares Held
at April 30,
2012
       Net
Activity
       Shares Held
at April 30,
2013
       Income  

FFI Institutional Tax-Exempt Fund

       3,601,217           65,898           3,667,115         $ 393   

 

(h)   Represents the current yield as of report date.

 

(i)   Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

 

Ÿ  

Financial futures contracts as of April 30, 2013 were as follows:

 

Contracts Sold     Issue   Exchange   Expiration   Notional
Value
    Unrealized
Depreciation
 
  (313   10-Year US Treasury Note   Chicago Board of Trade   June 2013   $ 41,741,484        $(498,996)   

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    55


Table of Contents

Schedule of Investments (concluded)

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

 

Ÿ  

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)

 

Ÿ  

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. 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 is not necessarily an indication of the risks associated with 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 Note 1 of the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 1,021,904,905              $ 1,021,904,905   

Short-Term Securities

  $ 3,667,115           1,800,000                5,467,115   
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 3,667,115         $ 1,023,704,905              $ 1,027,372,020   
 

 

 

      

 

 

      

 

    

 

 

 

 

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

      

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments2             

Liabilities:

                

Interest rate contracts

  $ (498,996                     $ (498,996

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

      

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                

Cash pledged for financial futures contracts

  $    413,000                        $ 413,000   

Liabilities:

                

TOB trust certificates

            $  (105,938,708)                 (105,938,708)   

VMTP Shares

              (287,100,000             (287,100,000
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 413,000         $ (393,038,708           $ (392,625,708
 

 

 

      

 

 

      

 

    

 

 

 

There were no transfers between levels during the year ended April 30, 2013.

 

See Notes to Financial Statements.

 

                
56    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments April 30, 2013

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Alabama — 0.4%

  

County of Jefferson Alabama, RB,
Series A, 5.25%, 1/01/19

   $ 1,490      $ 1,489,523   

Alaska — 1.1%

  

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

    

4.63%, 6/01/23

     1,715        1,720,882   

5.00%, 6/01/46

     2,250        2,004,413   
    

 

 

 
               3,725,295   

Arizona — 0.8%

  

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

     1,000        706,750   

Pima County IDA, RB, Arizona Charter Schools Project:

    

6.75%, 7/01/21

     305        305,686   

Series C, 6.75%, 7/01/31

     1,875        1,877,700   
    

 

 

 
               2,890,136   

California — 11.1%

  

California Health Facilities Financing Authority, RB:

    

St. Joseph Health System, Series A, 5.75%, 7/01/39

     2,200        2,593,954   

Stanford Hospital and Clinics, Series A, 5.00%, 8/15/51

     1,180        1,319,311   

Sutter Health, Series B, 6.00%, 8/15/42

     3,170        3,921,448   

California Pollution Control Financing Authority, RB:

    

Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 7/01/37

     1,025        1,058,425   

Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45

     2,560        2,626,304   

San Diego County Water Authority Desalination Project Pipeline, 5.00%, 11/21/45

     1,230        1,271,488   

California State Public Works Board, RB, Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34

     1,185        1,470,941   

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

     800        928,664   

San Marcos Unified School District, CAB, GO, Election of 2010, Series B (a):

    

4.80%, 8/01/41

     5,000        1,309,100   

4.82%, 8/01/42

     2,000        496,520   

State of California, GO, Various Purpose:

    

6.00%, 3/01/33

     2,525        3,107,391   

6.50%, 4/01/33

     14,925        18,665,951   
    

 

 

 
               38,769,497   

Colorado — 2.4%

  

Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33

     1,060        1,274,268   

Colorado Health Facilities Authority, Refunding RB, Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42

     1,000        1,071,580   

Colorado State Board of Governors, Refunding RB, Series A, 5.00%, 3/01/43

     1,180        1,508,642   

Plaza Metropolitan District No. 1 Colorado, Tax Allocation Bonds, 8.00%, 6/01/14 (b)

     3,300        3,601,554   

University of Colorado, RB, Series A, 5.75%, 6/01/28

     750        921,495   
    

 

 

 
               8,377,539   

Connecticut — 1.8%

  

Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, 5.00%, 11/15/40

     1,375        1,553,516   

Connecticut State Health & Educational Facility Authority, Refunding RB, Wesleyan University, 5.00%, 7/01/35

     3,385        3,830,331   
Municipal Bonds    Par  
(000)
    Value  

Connecticut (concluded)

  

Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, 6.25%, 1/01/31

   $ 950      $ 950,769   
    

 

 

 
               6,334,616   

Delaware — 1.6%

  

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40

     1,125        1,271,723   

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

     4,065        4,361,013   
    

 

 

 
               5,632,736   

District of Columbia — 2.3%

  

Metropolitan Washington Airports Authority, Refunding RB:

    

CAB, Second Senior Lien, Series B (AGC), 4.83%, 10/01/33 (a)

     6,590        2,487,330   

CAB, Second Senior Lien, Series B (AGC), 4.84%, 10/01/34 (a)

     4,830        1,734,984   

CAB, Second Senior Lien, Series B (AGC), 4.91%, 10/01/35 (a)

     6,515        2,197,835   

First Senior Lien, Series A, 5.25%, 10/01/44

     1,500        1,675,290   
    

 

 

 
               8,095,439   

Florida — 4.8%

  

County of Miami-Dade Florida, Refunding RB, Miami International Airport, Series A-1, 5.38%, 10/01/41

     1,165        1,326,609   

Fiddlers Creek Community Development District No. 2, Special Assessment Bonds, Series A, 6.38%, 5/01/35 (c)(d)

     2,350        1,235,724   

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

     2,720        2,721,414   

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

     2,265        2,889,189   

Midtown Miami Community Development District, Special Assessment Bonds, Series A, 6.25%, 5/01/37

     915        929,182   

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

     1,155        807,426   

Tampa-Hillsborough County Expressway Authority, Refunding RB:

    

Series A, 5.00%, 7/01/37

     1,370        1,535,647   

Series B, 5.00%, 7/01/42

     2,510        2,796,767   

Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43

     2,480        2,545,472   
    

 

 

 
               16,787,430   

Georgia — 3.6%

  

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

     130        148,087   

Fulton County Residential Care Facilities for the Elderly Authority, Refunding RB, Canterbury Court Project, Series A, 6.13%, 2/15/26

     2,000        2,042,640   

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

     3,465        3,992,962   

Municipal Electric Authority of Georgia, RB, Series W:

    

6.60%, 1/01/18 (e)

     205        213,216   

6.60%, 1/01/18

     4,370        4,851,225   

Municipal Electric Authority of Georgia, Refunding RB, Series X, 6.50%, 1/01/20

     990        1,160,092   
    

 

 

 
               12,408,222   

Hawaii — 0.5%

  

State of Hawaii Harbor System, RB, Harbor System, Series A, 5.25%, 7/01/30

     1,355        1,574,009   

Illinois — 17.0%

  

Chicago Illinois Board of Education, GO, Refunding, Series A, 5.50%, 12/01/39

     2,110        2,408,797   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    57


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Illinois (concluded)

  

Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40

   $ 1,050      $ 1,201,126   

City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien, Series C (AGM), 6.50%, 1/01/41

     5,865        7,597,228   

City of Chicago Illinois, GO, Public Improvement Project, Series A, 5.00%, 1/01/34

     4,535        5,036,117   

City of Chicago Illinois, Refunding RB:

    

Sales Tax Revenue, Series A, 5.25%, 1/01/38

     820        943,000   

Waterworks Revenue, 5.00%, 11/01/42

     2,865        3,244,527   

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

     800        819,600   

Illinois Finance Authority, RB:

    

Advocate Health Care Network, Series D, 6.50%, 11/01/38

     5,000        6,032,650   

Community Rehabilitation Providers Facilities, Series A, 6.50%, 7/01/22

     305        306,595   

Illinois Finance Authority, Refunding RB:

    

Ascension Health, Series A, 5.00%, 11/15/37

     970        1,093,394   

Central DuPage Health, Series B, 5.50%, 11/01/39

     1,610        1,857,779   

Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38 (f)

     2,315        2,617,964   

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

    

Series B, 5.00%, 6/15/50

     3,150        3,401,118   

Series B-2, 5.00%, 6/15/50

     2,500        2,698,575   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     1,335        1,631,664   

6.00%, 6/01/28

     1,140        1,392,157   

Regional Transportation Authority, RB:

    

Series A (AMBAC), 7.20%, 11/01/20

     1,175        1,411,022   

Series A (NPFGC), 6.70%, 11/01/21

     6,450        7,710,910   

Series C (NPFGC), 7.75%, 6/01/20

     2,500        3,122,250   

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

     630        725,105   

Village of Hodgkins Illinois, RB, MBM Project, AMT, 6.00%, 11/01/23

     2,800        2,804,340   

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

     1,350        1,358,370   
    

 

 

 
               59,414,288   

Indiana — 4.3%

  

Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A:

    

4.00%, 8/01/35

     1,130        1,186,138   

4.00%, 2/01/38

     1,810        1,892,590   

Indiana Finance Authority, RB:

    

Ohio River Bridges East End Crossing Project, Series A, Private Activity, Ohio River Bridge, AMT, 5.00%, 7/01/44

     450        477,608   

Ohio River Bridges East End Crossing Project, Series A, Private Activity, Ohio River Bridge, AMT, 5.00%, 7/01/48

     1,430        1,499,655   

Sisters of St. Francis Health, 5.25%, 11/01/39

     840        952,493   

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

     1,580        1,841,458   

Indiana Finance Authority, Refunding RB:

    

Community Health Network Project, Series A, 5.00%, 5/01/42

     1,885        2,084,999   

Parkview Health System, Series A, 5.75%, 5/01/31

     2,795        3,227,638   

Indianapolis Local Public Improvement Bond Bank, RB, Series A:

    

5.00%, 1/15/40

     1,270        1,430,045   

5.00%, 1/15/36

     395        449,317   
    

 

 

 
               15,041,941   
Municipal Bonds    Par  
(000)
    Value  

Iowa — 0.6%

  

Iowa Student Loan Liquidity Corp., Refunding RB, Senior Series A-1, AMT, 5.15%, 12/01/22

   $ 1,950      $ 2,257,574   

Kansas — 0.5%

  

Kansas Development Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 5.00%, 1/01/40

     1,660        1,811,010   

Kentucky — 0.3%

  

Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40

     1,010        1,208,303   

Louisiana — 4.3%

  

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35

     3,320        3,981,942   

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

     7,500        7,518,600   

Sabine River Authority Louisiana, Refunding RB, International Paper Co. Project, 6.20%, 2/01/25

     3,600        3,615,120   
    

 

 

 
               15,115,662   

Maine — 0.3%

  

Maine State Turnpike Authority, RB, Series A, 5.00%, 7/01/42

     885        1,017,520   

Maryland — 1.5%

  

County of Montgomery Maryland, GO, West Germantown Development District, Senior Series A (Radian), 6.70%, 7/01/27

     1,130        1,144,645   

Maryland Community Development Administration, Refunding RB, Residential, Series D, AMT, 4.90%, 9/01/42

     1,500        1,549,110   

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

     435        496,087   

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

     830        926,819   

Maryland Health & Higher Educational Facilities Authority, RB, University Of Maryland Medical System, Series B (NPFGC), 7.00%, 7/01/22

     955        1,169,388   
    

 

 

 
               5,286,049   

Massachusetts — 2.9%

  

Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare, Series J-1, 5.00%, 7/01/39

     1,805        2,008,297   

Massachusetts HFA, RB, AMT:

    

S/F, Series 130, 5.00%, 12/01/32

     2,720        2,831,166   

Series A, 5.20%, 12/01/37

     2,830        2,943,851   

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

     2,075        2,237,037   
    

 

 

 
               10,020,351   

Michigan — 6.6%

  

City of Detroit Michigan, RB, Senior Lien, Series A, 5.25%, 7/01/41

     3,075        3,333,761   

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

     910        1,127,445   

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

     1,380        1,536,340   

Michigan State Hospital Finance Authority, Refunding RB, Series A:

    

Henry Ford Health System, 5.25%, 11/15/46

     5,080        5,359,400   

McLaren Health Care, 5.75%, 5/15/38

     8,560        9,888,940   

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

     1,400        1,793,638   
    

 

 

 
               23,039,524   

 

See Notes to Financial Statements.

 

                
58    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

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, Weyerhaeuser Co. Project, Series A, 6.80%, 4/01/22

   $ 3,000      $ 3,621,090   

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

     1,065        1,210,575   
    

 

 

 
               4,831,665   

Nebraska — 0.7%

  

Central Plains Energy Project Nebraska, RB, Gas Project No. 3:

    

5.25%, 9/01/37

     825        922,301   

5.00%, 9/01/42

     1,445        1,562,796   
    

 

 

 
               2,485,097   

New Jersey — 3.4%

  

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 6.25%, 9/15/29

     1,955        2,053,884   

New Jersey State Housing & Mortgage Finance Agency, RB, Series AA, 6.38%, 10/01/28

     825        894,737   

New Jersey State Turnpike Authority, RB, Series A:

    

5.00%, 1/01/38

     1,295        1,451,578   

5.00%, 1/01/43

     1,985        2,210,139   

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

     1,635        1,916,155   

Port Authority of New York & New Jersey, RB, JFK International Air Terminal, 6.00%, 12/01/42

     1,250        1,463,575   

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

     1,845        1,841,974   
    

 

 

 
               11,832,042   

New York — 8.0%

  

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

     9,405        11,786,346   

Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.25%, 11/15/40

     1,205        1,363,313   

New York City Industrial Development Agency, RB:

    

British Airways Plc Project, AMT, 7.63%, 12/01/32

     1,920        1,958,361   

Series C, 6.80%, 6/01/28

     690        698,963   

Special Needs Facilities Pooled Program, Series C-1, 6.50%, 7/01/17

     685        690,706   

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

     6,700        7,736,088   

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        1,458,620   

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

     1,165        1,367,710   

Westchester County Industrial Development Agency New York, RB, Special Needs Facilities Pooled Program, Series E-1, 6.50%, 7/01/17

     1,000        1,006,030   
    

 

 

 
               28,066,137   

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        1,562,524   

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

     1,400        1,561,728   

North Carolina Medical Care Commission, Refunding RB, Carolina Village Project, 6.00%, 4/01/38

     2,000        2,111,580   
    

 

 

 
               5,235,832   

Oregon — 0.1%

  

City of Tigard Washington County Oregon, Refunding RB, Water System, 5.00%, 8/01/37

     250        289,250   
Municipal Bonds    Par  
(000)
    Value  

Pennsylvania — 1.3%

  

Bucks County IDA, RB, Ann’s Choice, Inc. Facility, Series A, 6.13%, 1/01/25

   $ 880      $ 891,071   

Montgomery County IDA Pennsylvania, MRB, Whitemarsh Continuing Care, 6.13%, 2/01/28

     420        427,690   

Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project, 5.00%, 11/15/40

     1,890        2,108,238   

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

     1,265        1,266,948   
    

 

 

 
               4,693,947   

Puerto Rico — 3.8%

  

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

     4,255        4,825,425   

Puerto Rico Sales Tax Financing Corp., Refunding RB CAB (a):

    

Series A (NPFGC), 5.64%, 8/01/41

     8,580        1,783,525   

Series A (NPFGC), 5.73%, 8/01/46

     13,400        2,046,314   

Series C, 5.54%, 8/01/39

     18,670        4,447,194   
    

 

 

 
               13,102,458   

South Carolina — 1.1%

  

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

     3,280        3,696,396   

South Dakota — 0.3%

  

South Dakota Health and Educational Facilities Authority, RB, Series E, 5.00%, 11/01/42

     1,070        1,185,111   

Tennessee — 0.1%

  

Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47

     210        237,886   

Texas — 11.0%

  

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

     1,500        127,500   

Brazos River Harbor Navigation District, Refunding RB, Dow Chemical Co. Project, Series A-7, AMT, 6.63%, 5/15/33

     3,000        3,014,190   

Central Texas Regional Mobility Authority, Refunding RB:

    

Senior Lien, 6.25%, 1/01/46

     2,140        2,527,982   

Senior Lien, Series A, 5.00%, 1/01/33 (f)

     100        110,225   

Senior Lien, Series A, 5.00%, 1/01/43 (f)

     190        205,101   

Subordinate, 5.00%, 1/01/33 (f)

     355        376,488   

Subordinate, 5.00%, 1/01/42 (f)

     315        327,720   

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

     1,510        1,730,037   

City of Houston Texas, RB, Special Facilities, Continental Airlines, Inc., Continental Airlines, Series E, AMT, 6.75%, 7/01/21

     4,820        4,837,931   

Dallas/Fort Worth International Airport, Refunding RB, AMT, 5.00%, 11/01/35

     1,800        1,921,482   

Fort Bend County Industrial Development Corp., RB, NRG Energy, Inc., Series B, 4.75%, 11/01/42

     1,475        1,485,104   

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18 (b)

     2,000        2,674,960   

North Texas Tollway Authority, Refunding RB, First Tier, Series A, 6.25%, 1/01/39

     7,000        8,147,860   

Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare, 5.00%, 8/15/43

     360        400,712   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/29

     1,000        1,083,450   

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

    

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

     3,000        3,670,920   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    59


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Texas (concluded)

  

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

    

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

   $ 3,000      $ 3,607,080   

University of Texas System, Refunding RB, Financing System, Series B, 5.00%, 8/15/43

     1,830        2,137,733   
    

 

 

 
               38,386,475   

Utah — 0.7%

  

County of Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43

     2,010        2,266,235   

Virginia — 3.1%

  

Fairfax County EDA, Refunding RB, Goodwin House, Inc.:

    

5.13%, 10/01/37

     500        528,160   

5.13%, 10/01/42

     3,440        3,639,486   

Route 460 Funding Corp. of Virginia Toll Road, RB, Senior Lien, Series A, 5.13%, 7/01/49

     1,230        1,332,053   

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River, AMT:

    

5.25%, 1/01/32

     1,615        1,776,403   

6.00%, 1/01/37

     1,830        2,106,842   

5.50%, 1/01/42

     1,155        1,257,218   
    

 

 

 
               10,640,162   

Washington — 2.4%

  

Washington Health Care Facilities Authority, RB, Swedish Health Services, Series A, 6.75%, 11/15/21 (b)

     1,980        2,773,049   

Washington Health Care Facilities Authority, Refunding RB:

    

Catholic Health Initiatives, Series D, 6.38%, 10/01/36

     3,700        4,471,376   

Providence Health & Services, Series A, 5.00%, 10/01/42

     1,015        1,142,322   
    

 

 

 
               8,386,747   

Wisconsin — 4.3%

  

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

     7,100        8,578,362   

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

     2,465        2,796,838   

WPPI Energy, Refunding RB, Series A:

    

5.00%, 7/01/29

     375        437,081   

5.00%, 7/01/30

     475        550,938   

5.00%, 7/01/31

     1,035        1,197,537   

5.00%, 7/01/37

     1,260        1,426,257   
    

 

 

 
               14,987,013   
Total Municipal Bonds — 111.9%        390,619,117   
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
        

Arizona — 0.8%

  

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

     2,450        2,766,495   

California — 8.1%

  

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

     3,271        3,778,904   

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

     2,610        3,032,637   
Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
  

Par  

(000)

    Value  

California (concluded)

  

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

   $ 5,940      $ 6,709,022   

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

     2,290        2,579,822   

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

     1,077        1,289,284   

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

     9,480        10,751,363   
    

 

 

 
               28,141,032   

Colorado — 0.7%

  

Colorado Health Facilities Authority, Refunding RB, Catholic Health, Series A, 5.50%, 7/01/34 (h)

     2,129        2,484,633   

Connecticut — 1.9%

  

Connecticut State Health & Educational Facility Authority, RB, Yale University, Series Z-3, 5.05%, 7/01/42

     6,000        6,779,820   

Florida — 1.8%

  

County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34

     5,679        6,413,464   

Illinois — 1.4%

  

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

     1,320        1,517,300   

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

     2,999        3,400,759   
    

 

 

 
               4,918,059   

Maryland — 2.1%

  

Maryland Health & Higher Educational Facilities Authority, RB, Ascension Health, Series B, 5.00%, 11/15/51

     4,160        4,652,960   

Maryland State Transportation Authority, RB, Transportation Facility Project (AGM), 5.00%, 7/01/41

     2,290        2,593,288   
    

 

 

 
               7,246,248   

Massachusetts — 4.6%

  

Massachusetts School Building Authority, RB:

    

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

     10,000        10,895,450   

Sales Tax Revenue, Senior, Series B, 5.00%, 10/15/41

     4,530        5,227,937   
    

 

 

 
               16,123,387   

Michigan — 0.9%

  

Detroit Water and Sewerage Department, Refunding RB, Sewage Disposal System, Senior Lien, Series A:

    

5.00%, 7/01/32

     1,563        1,706,450   

5.25%, 7/01/39

     1,349        1,472,347   
    

 

 

 
               3,178,797   

New Hampshire — 0.7%

  

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

     2,009        2,351,291   

New Jersey — 0.8%

  

New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 6/15/36

     2,460        2,810,648   

New York — 11.4%

  

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

     1,610        1,911,304   

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

    

Series DD, 5.00%, 6/15/37

     6,299        7,120,421   

Series FF-2, 5.50%, 6/15/40

     1,575        1,858,410   

 

See Notes to Financial Statements.

 

                
60    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents

Schedule of Investments (continued)

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
  

Par  

(000)

    Value  

New York (concluded)

  

New York City Transitional Finance Authority, RB, Future Tax Secured Revenue, Sub-Series E-1, 5.00%, 2/01/42

   $ 2,459      $ 2,803,067   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43

     10,740        12,334,937   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51

     6,440        7,637,582   

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

     5,789        6,197,985   
    

 

 

 
               39,863,706   

North Carolina — 2.0%

  

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series A, 5.00%, 10/01/41

     6,239        6,912,095   

Ohio — 5.4%

  

Ohio Higher Educational Facility Commission, Refunding RB, Hospital, Cleveland Clinic Health, Series A, 5.25%, 1/01/33

     2,400        2,664,480   

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

     13,843        16,008,964   
    

 

 

 
               18,673,444   

South Carolina — 1.7%

  

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

     4,995        5,753,840   

Texas — 2.8%

  

Harris County Texas Metropolitan Transit Authority, Refunding RB, Sales and Use Tax Bonds, Series A, 5.00%, 11/01/41

     3,400        3,863,284   

Texas Department of Housing & Community Affairs, MRB, Series B, AMT (Ginnie Mae), 5.25%, 9/01/32

     2,811        2,960,197   

Texas State University Systems, Refunding RB (AGM), 5.00%, 3/15/30

     2,743        3,029,837   
    

 

 

 
               9,853,318   
Municipal Bonds Transferred to
Tender Option Bond Trusts (g)
  

Par  

(000)

    Value  

Utah — 0.9%

  

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

     $  2,774      $ 3,119,692   

Washington — 5.4%

  

Central Puget Sound Regional Transit Authority, RB, Series A:

    

5.00%, 11/01/34

     5,000        5,658,150   

5.00%, 11/01/36

     4,000        4,526,520   

(AGM), 5.00%, 11/01/32

     7,693        8,685,028   
    

 

 

 
               18,869,698   

Wisconsin — 0.8%

  

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

     2,499        2,773,684   

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 54.2%

  

  

    189,033,351   

Total Long-Term Investments

(Cost — $517,549,750) — 166.1%

  

  

    579,652,468   
    
                  
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.03% (i)(j)

     5,336,715        5,335,715   

Total Short-Term Securities

(Cost — $5,335,715) — 1.5%

  

  

    5,335,715   
Total Investments (Cost—$522,885,465) — 167.6%        584,988,183   
Other Assets Less Liabilities — 1.0%        3,452,837   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (28.5)%

   

    (99,443,146
VMTP Shares, at Liquidation Value — (40.1)%        (140,000,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 348,997,874   
 

 

 

 

 

Notes to Schedule of Investments

 

(a)   Represents a zero-coupon bond. Rate shown reflects the current yield 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)   Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.

 

(d)   Non-income producing security.

 

(e)   Security is collateralized by Municipal or US Treasury obligations.

 

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

 

Counterparty      Value       

Unrealized

Appreciation

 

JPMorgan Chase & Co

     $ 3,637,498         $ 43,826   

 

(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)   All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from October 1, 2016 to June 15, 2019, is $11,027,671.

 

(i)   Investments in issuers considered to be an affiliate of the Fund during the year ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

 

Affiliate      Shares Held
at April 30,
2012
       Net
Activity
      

Shares Held
at April 30,

2013

       Income  

FFI Institutional Tax-Exempt Fund

       40,158           5,295,557           5,335,715         $ 83   

 

See Notes to Financial Statements.

 

                
   ANNUAL REPORT    APRIL 30, 2013    61


Table of Contents
Schedule of Investments (concluded)    BlackRock MuniVest Fund II, Inc. (MVT)

 

 

(j)   Represents the current yield as of report date.

 

Ÿ  

Financial futures contracts as of April 30, 2013 were as follows:

 

Contracts Sold     Issue   Exchange   Expiration   Notional
Value
    Unrealized
Depreciation
 
  (206   10-Year US Treasury Note   Chicago Board of Trade   June 2013   $ 27,472,031      $ (389,910

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

 

Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access

 

Ÿ  

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)

 

Ÿ  

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. 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 is not necessarily an indication of the risks associated with 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 Note 1 of the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 579,652,468              $ 579,652,468   

Short-Term Securities

  $ 5,335,715                          5,335,715   
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 5,335,715         $ 579,652,468              $ 584,988,183   
 

 

 

      

 

 

      

 

    

 

 

 

 

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

     

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments2             

Liabilities:

                

Interest rate contracts

  $ (389,910                     $ (389,910

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

      

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:    
     Level 1        Level 2        Level 3      Total  

Assets:

                

Cash

  $ 1,864,406                        $ 1,864,406   

Cash pledged for financial futures contracts

    272,000                          272,000   

Liabilities:

                

TOB trust certificates

            $ (99,386,335             (99,386,335

VMTP Shares

              (140,000,000             (140,000,000
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 2,136,406         $ (239,386,335           $ (237,249,929
 

 

 

      

 

 

      

 

    

 

 

 

There were no transfers between levels during the year ended April 30, 2013.

 

See Notes to Financial Statements.

 

                
62    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Statements of Assets and Liabilities     

 

April 30, 2013   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

  $ 576,743,688      $ 591,764,980      $ 405,908,246      $ 300,116,464      $ 339,764,334      $ 1,023,704,905      $ 579,652,468   

Investments at value — affiliated2

    9,209,652        545,905        1,244,129        1,169,756        3,309,474        3,667,115        5,335,715   

Cash

                  1,293,337        940,609                      1,864,406   

Cash pledged for financial futures contracts

    242,000        213,000        200,000        119,000        246,000        413,000        272,000   

Interest receivable

    9,282,683        7,700,811        5,882,935        4,158,395        4,200,573        13,791,832        8,842,092   

Investments sold receivable

    7,001,756        1,024,020        115,000        50,000        1,594,485        886,654        20,000   

Variation margin receivable

    17,250        15,000        16,969        8,438        17,438        29,344        19,313   

Deferred offering costs

           233,895        98,192        83,030        100,254        212,296        134,456   

Prepaid expenses

    8,895        10,097        7,005        5,162        5,861        17,686        9,892   
 

 

 

 

Total assets

    602,505,924        601,507,708        414,765,813        306,650,854        349,238,419        1,042,722,832        596,150,342   
 

 

 

 
             
Accrued Liabilities                                                        

Investments purchased payable

    9,230,715        2,394,724        3,795,000        2,750,990        12,865,780        10,339,534        5,458,078   

Income dividends payable — Common Shares

    2,236,480        1,713,600        1,292,295        937,918        962,719        2,738,183        1,902,773   

Investment advisory fees payable

    264,820        244,169        183,876        135,964        137,371        462,790        240,783   

Interest expense and fees payable

    41,704        40,981        38,400        31,498        23,571        58,092        56,811   

Officer’s and Directors’ fees payable

    176        477        355        265        296        177,972        480   

Other accrued expenses payable

    357,837        110,982        92,143        74,101        78,658        255,154        107,208   
 

 

 

 

Total accrued liabilities

    12,131,732        4,504,933        5,402,069        3,930,736        14,068,395        14,031,725        7,766,133   
 

 

 

 
             
Other Liabilities                                                        

TOB trust certificates

    76,451,238        81,244,091        69,752,555        56,354,474        48,934,200        105,938,708        99,386,335   

VRDP Shares, at liquidation value of $100,000 per share3,4

           142,500,000                                      

VMTP Shares, at liquidation value of $100,000 per share3,4

                  83,700,000        55,000,000        87,000,000        287,100,000        140,000,000   
 

 

 

 

Total other liabilities

    76,451,238        223,744,091        153,452,555        111,354,474        135,934,200        393,038,708        239,386,335   
 

 

 

 

Total liabilities

    88,582,970        228,249,024        158,854,624        115,285,210        150,002,595        407,070,433        247,152,468   
 

 

 

 

Net Assets Applicable to Common Shareholders

  $ 513,922,954      $ 373,258,684      $ 255,911,189      $ 191,365,644      $ 199,235,824      $ 635,652,399      $ 348,997,874   
 

 

 

 
             
Net Assets Applicable to Common Shareholders Consist of                                           

Paid-in capital5

  $ 479,994,397      $ 315,858,884      $ 210,572,865      $ 155,479,956      $ 175,219,629      $ 543,645,761      $ 286,179,389   

Undistributed net investment income

    1,922,594        6,723,045        3,703,153        3,482,744        2,656,770        8,304,209        5,323,706   

Undistributed net realized gain (accumulated net realized loss)

    (14,502,903     (9,692,822     (299,020     239,153        (7,318,601     (220,494     (4,218,029

Net unrealized appreciation/depreciation

    46,508,866        60,369,577        41,934,191        32,163,791        28,678,026        83,922,923        61,712,808   
 

 

 

 

Net Assets Applicable to Common Shareholders

  $ 513,922,954      $ 373,258,684      $ 255,911,189      $ 191,365,644      $ 199,235,824      $ 635,652,399      $ 348,997,874   
 

 

 

 

Net asset value, per Common Share

  $ 14.36      $ 12.63      $ 18.12      $ 16.93      $ 15.31      $ 16.60      $ 16.69   
 

 

 

 

1 Investments at cost — unaffiliated

  $ 529,804,768      $ 531,164,881      $ 363,617,396      $ 267,792,680      $ 310,834,521      $ 939,282,986      $ 517,549,750   

2 Investments at cost — affiliated

  $ 9,209,652      $ 545,905      $ 1,244,129      $ 1,169,756      $ 3,309,474      $ 3,667,115      $ 5,335,715   

3 VRDP/VMTP Shares outstanding, par value $0.10 per share

           1,425        837        550        870        2,871        1,400   

4 Preferred Shares authorized, including Auction Market Preferred Shares (“AMPS”)

           8,905        5,837        4,030        6,230        15,671        8,400   

5 Common Shares outstanding, 200 million shares authorized, $0.10 par value

    35,783,679        29,544,827        14,123,440        11,300,218        13,009,717        38,296,266        20,909,589   

 

See Notes to Financial Statements.      
                
   ANNUAL REPORT    APRIL 30, 2013    63


Table of Contents
Statements of Operations     

 

Year Ended April 30, 2013  

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

  $ 31,818,487      $ 26,342,695      $ 19,078,700      $ 14,041,145      $ 14,199,635      $ 43,280,421      $ 27,874,378   

Income — affiliated

    460        1,336        65        76        143        393        83   
 

 

 

 

Total income

    31,818,947        26,344,031        19,078,765        14,041,221        14,199,778        43,280,814        27,874,461   
 

 

 

 
             
Expenses                                                        

Investment advisory

    3,119,663        2,921,498        2,231,716        1,653,869        1,836,127        5,621,867        2,911,601   

Liquidity fees

           172,955                             2,319,797          

Professional

    125,285        151,336        116,656        90,333        100,387        166,388        125,089   

Accounting services

    105,098        107,796        82,389        68,623        65,090        154,932        102,937   

Transfer agent

    58,800        49,267        30,136        28,026        21,461        59,708        38,692   

Officer and Directors

    52,104        35,709        24,373        18,347        19,167        84,639        33,337   

Custodian

    26,686        30,062        20,623        15,647        18,831        46,741        26,255   

Printing

    22,486        16,398        13,376        15,066        16,306        22,451        14,401   

Registration

    20,292        10,232        9,374        9,255        9,250        13,650        9,516   

Miscellaneous

    19,599        51,922        58,474        54,201        50,991        36,915        42,579   
 

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    3,550,013        3,547,175        2,587,117        1,953,367        2,137,610        8,527,088        3,304,407   

Interest expense, fees and amortization of offering costs1

    597,312        1,937,176        1,475,044        1,069,513        1,418,035        3,535,934        2,413,923   
 

 

 

 

Total expenses

    4,147,325        5,484,351        4,062,161        3,022,880        3,555,645        12,063,022        5,718,330   

Less fees waived by Manager

    (1,153     (3,398     (245     (317     (166,446     (1,072     (297
 

 

 

 

Total expenses after fees waived

    4,146,172        5,480,953        4,061,916        3,022,563        3,389,199        12,061,950        5,718,033   
 

 

 

 

Net investment income

    27,672,775        20,863,078        15,016,849        11,018,658        10,810,579        31,218,864        22,156,428   
 

 

 

 
             
Realized and Unrealized Gain (Loss)                                                        
Net realized gain (loss) from:              

Investments

    5,021,190        1,544,451        1,791,103        2,536,072        5,995,002        9,290,220        3,453,732   

Financial futures contracts

    (839,471     (1,130,971     (850,913     (640,707     (736,213     (3,012,130     (1,154,575
 

 

 

 
    4,181,719        413,480        940,190        1,895,365        5,258,789        6,278,090        2,299,157   
 

 

 

 
Net change in unrealized appreciation/depreciation on:              

Investments

    27,595,809        14,414,694        13,349,885        8,527,477        4,542,461        14,541,480        14,648,795   

Financial futures contracts

    50,134        86,421        (10,541     101,182        33,578        894,560        80,569   
 

 

 

 
    27,645,943        14,501,115        13,339,344        8,628,659        4,576,039        15,436,040        14,729,364   
 

 

 

 

Total realized and unrealized gain

    31,827,662        14,914,595        14,279,534        10,524,024        9,834,828        21,714,130        17,028,521   
 

 

 

 

Distributions to VRDP Shareholders from net realized gain

                                       (104,404       

Distributions to VMTP Shareholders from net realized gain

                  (115,598     (66,164                     
 

 

 

 

Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations

  $ 59,500,437      $ 35,777,673      $ 29,180,785      $ 21,476,518      $ 20,645,407      $ 52,828,590      $ 39,184,949   
 

 

 

 

1 Related to TOBs, VRDP Shares and/or VMTP Shares.

  

           

 

 

See Notes to Financial Statements.      
                
64    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Statements of Changes in Net Assets     

 

    BlackRock MuniAssets
Fund, Inc. (MUA)
        BlackRock MuniEnhanced
Fund, Inc. (MEN)
 
    Year Ended April 30,    

 

  Year Ended April 30,  
Increase (Decrease) in Net Assets Applicable to Common Shareholders:   2013     2012         2013     2012  
         
Operations                                    

Net investment income

  $ 27,672,775      $ 27,317,491        $ 20,863,078      $ 20,340,510   

Net realized gain (loss)

    4,181,719        7,126,365          413,480        (675,114

Net change in unrealized appreciation/depreciation

    27,645,943        40,188,787          14,501,115        54,234,700   

Dividends to AMPS shareholders from net investment income

                           (86,943
 

 

 

     

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    59,500,437        74,632,643          35,777,673        73,813,153   
 

 

 

     

 

 

 
         
Dividends to Common Shareholders From1                                    

Net investment income

    (27,772,135     (26,925,856       (20,531,117     (20,207,814
 

 

 

     

 

 

 
         
Capital Share Transactions                                    

Reinvestment of common dividends

    597,054                 995,097        147,962   
 

 

 

     

 

 

 
         
Net Assets Applicable to Common Shareholders                                    

Total increase in net assets applicable to Common Shareholders

    32,325,356        47,706,787          16,241,653        53,753,301   

Beginning of year

    481,597,598        433,890,811          357,017,031        303,263,730   
 

 

 

     

 

 

 

End of year

  $ 513,922,954      $ 481,597,598        $ 373,258,684      $ 357,017,031   
 

 

 

     

 

 

 

Undistributed net investment income

  $ 1,922,594      $ 2,005,206        $ 6,723,045      $ 6,013,515   
 

 

 

     

 

 

 

 

1   

Dividends are determined in accordance with federal income tax regulations.

 

    BlackRock MuniHoldings
Fund, Inc. (MHD)
        BlackRock MuniHoldings
Fund II, Inc. (MUH)
 
    Year Ended April 30,    

 

  Year Ended April 30,  
Increase (Decrease) in Net Assets applicable to Common Shareholders:   2013     2012         2013     2012  
         
Operations                                    

Net investment income

  $ 15,016,849      $ 15,666,101        $ 11,018,658      $ 11,523,683   

Net realized gain

    940,190        1,157,061          1,895,365        482,184   

Net change in unrealized appreciation/depreciation

    13,339,344        36,408,737          8,628,659        27,132,279   

Dividends to AMPS shareholders from net investment income

           (208,121              (87,811

Distributions to VMTP Shareholders from net realized gain

    (115,598              (66,164       
 

 

 

     

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    29,180,785        53,023,778          21,476,518        39,050,335   
 

 

 

     

 

 

 
         
Dividends and Distributions to Common Shareholders From2                                    

Net investment income

    (15,802,003     (15,317,116       (11,743,669     (11,059,908

Net realized gain

    (2,694,641              (1,836,005       
 

 

 

     

 

 

 

Decrease in net assets resulting from dividends and distributions to Common Shareholders

    (18,496,644     (15,317,116       (13,579,674     (11,059,908
 

 

 

     

 

 

 
         
Capital Share Transactions                                    

Reinvestment of common dividends and distributions

    1,237,551        914,394          844,464        375,140   
 

 

 

   

 

 

   

 

 

 

 

   

 

 

 
         
Net Assets Applicable to Common Shareholders                                    

Total increase in net assets applicable to Common Shareholders

    11,921,692        38,621,056          8,741,308        28,365,567   

Beginning of year

    243,989,497        205,368,441          182,624,336        154,258,769   
 

 

 

     

 

 

 

End of year

  $ 255,911,189      $ 243,989,497        $ 191,365,644      $ 182,624,336   
 

 

 

     

 

 

 

Undistributed net investment income

  $ 3,703,153      $ 4,428,518        $ 3,469,290      $ 4,100,642   
 

 

 

     

 

 

 

 

2   

Dividends and distributions are determined in accordance with federal income tax regulations.

 

See Notes to Financial Statements.      
                
   ANNUAL REPORT    APRIL 30, 2013    65


Table of Contents
Statements of Changes in Net Assets     

 

    BlackRock MuniHoldings
Quality Fund, Inc. (MUS)
        BlackRock Muni Intermediate
Duration Fund, Inc. (MUI)
 
    Year Ended April 30,         Year Ended April 30,  
Increase (Decrease) in Net Assets Applicable to Common Shareholders:   2013     2012         2013     2012  
         
Operations                                    

Net investment income

  $ 10,810,579      $ 11,513,767        $ 31,218,864      $ 32,774,021   

Net realized gain

    5,258,789        1,695,833          6,278,090        3,176,086   

Net change in unrealized appreciation/depreciation

    4,576,039        26,035,352          15,436,040        63,908,723   

Dividends to AMPS shareholders from net investment income

           (137,099                

Distributions to VRDP Shareholders from net realized gain

                    (104,404       
 

 

 

     

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    20,645,407        39,107,853          52,828,590        99,858,830   
 

 

 

     

 

 

 
         
Dividends and Distributions to Common Shareholders From1                                    

Net investment income

    (11,540,016     (11,509,551       (33,231,587     (32,680,904

Net realized gain

                    (4,957,743       
 

 

 

   

 

 

 

 

 

Decrease in net assets resulting from dividends and distributions to Common Shareholders

    (11,540,016     (11,509,551       (38,189,330     (32,680,904
 

 

 

   

 

 

 

 

 
         
Capital Share Transactions                                    

Reinvestment of common dividends and distributions

    563,444        249,057          3,576,025        742,887   
 

 

 

   

 

 

 

 

 
         
Net Assets Applicable to Common Shareholders                                    

Total increase in net assets applicable to Common Shareholders

    9,668,835        27,847,359          18,215,285        67,920,813   

Beginning of year

    189,566,989        161,719,630          617,437,114        549,516,301   
 

 

 

     

 

 

 

End of year

  $ 199,235,824      $ 189,566,989        $ 635,652,399      $ 617,437,114   
 

 

 

     

 

 

 

Undistributed net investment income

  $ 2,656,770      $ 3,210,440        $ 8,304,209      $ 9,173,694   
 

 

 

     

 

 

 

 

1   

Dividends and distributions are determined in accordance with federal income tax regulations.

 

    BlackRock MuniVest
Fund II, Inc. (MVT)
 
    Year Ended April 30,  
Increase (Decrease) in Net Assets Applicable to Common Shareholders:   2013     2012  
   
Operations                

Net investment income

  $ 22,156,428      $ 23,162,488   

Net realized gain

    2,299,157        2,351,347   

Net change in unrealized appreciation/depreciation

    14,729,364        47,733,695   

Dividends to AMPS shareholders from net investment income

           (473,170
 

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    39,184,949        72,774,360   
 

 

 

 
   
Dividends to Common Shareholders From2                

Net investment income

    (22,892,921     (22,158,463
 

 

 

 
   
Capital Share Transactions                

Reinvestment of common dividends

    1,764,861        2,041,162   
 

 

 

 
   
Net Assets Applicable to Common Shareholders                

Total increase in net assets applicable to Common Shareholders

    18,056,889        52,657,059   

Beginning of year

    330,940,985        278,283,926   
 

 

 

 

End of year

  $ 348,997,874      $ 330,940,985   
 

 

 

 

Undistributed net investment income

  $ 5,323,706      $ 5,961,823   
 

 

 

 

 

2   

Dividends are determined in accordance with federal income tax regulations.

 

 

See Notes to Financial Statements.      
                
66    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Statements of Cash Flows     

 

Year Ended April 30, 2013   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)
 
             
Cash Provided by Operating Activities                                                        

Net increase in net assets resulting from operations, excluding distributions to VRDP/VMTP shareholders

  $ 59,500,437      $ 35,777,673      $ 29,296,383      $ 21,542,682      $ 20,645,407      $ 52,932,994      $ 39,184,949   

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

             

(Increase) decrease in interest receivable

    (334,445     97,934        (242,822     (169,225     5,204        (551,693     (207,023

Decrease in cash pledged as collateral for financial futures contracts

    128,000        51,000        78,000        90,000        8,000        538,000        105,000   

Decrease in prepaid expenses

    14,291        99,163        8,380        6,056        1,759        307,938        2,840   

Increase in variation margin receivable

    (17,250     (15,000     (16,969     (8,438     (17,438     (29,344     (19,313

Increase in investment advisory fees payable

    22,526        12,820        10,128        8,222        7,090        20,915        14,282   

Increase in interest expense and fees payable

    13,230        1,013        11,033        9,923        6,660        20,651        13,064   

Increase (decrease) in other accrued expenses payable

    220,169        (45,088     7,453        11,144        374        82,265        (15,637

Decrease in variation margin payable

    (35,000     (25,000     (26,250     (19,750     (24,000     (90,000     (35,625

Increase (decrease) in Officer’s and Directors’ fees payable

    (2,793     (4,570     (3,251     (2,317     (2,405     33,451        (4,273

Net realized and unrealized gain on investments

    (32,353,892     (15,959,145     (15,140,988     (11,063,549     (10,537,463     (23,831,700     (18,102,527

Amortization of premium and accretion of discount on investments

    (823,122     (627,997     (82,554     (274,794     1,113,067        2,780,637        201,703   

Amortization of deferred offering costs

           20,151        39,701        39,581        41,539        1,089,528        40,617   

Proceeds from sales of long-term investments

    111,040,664        67,727,799        69,128,489        50,935,498        112,066,566        156,672,400        86,148,513   

Purchases of long-term investments

    (119,336,473     (88,111,490     (73,128,127     (54,606,238     (119,506,638     (177,649,380     (95,094,591

Net proceeds from sales (purchases) of short-term securities

    (5,804,682     8,582,052        728,485        (842,206     (136,804     (1,865,898     (95,557
 

 

 

 

Cash provided by operating activities

    12,231,660        7,581,315        10,667,091        5,656,589        3,670,918        10,460,764        12,136,422   
 

 

 

 
             
Cash Used for Financing Activities                                                        

Cash receipts from TOB trust certificates

    19,952,914        26,700,594        15,789,897        15,485,790        10,303,298        30,060,026        11,166,932   

Cash payments for TOB trust certificates

    (5,012,103     (14,738,587     (7,795,237     (7,404,553     (3,000,370     (5,551,010     (320,470

Cash receipts from issuance of VMTP Shares

                                       287,100,000          

Cash payments on redemption of VRDP Shares

                                       (287,100,000       

Cash payments for offering costs

                                       (243,560       

Cash dividends paid to Common Shareholders

    (27,172,471     (19,531,447     (17,252,816     (12,731,053     (10,973,846     (34,597,892     (21,118,478

Cash distributions paid to VMTP Shareholders

                  (115,598     (66,164                     

Cash distributions paid to VRDP Shareholders

                                       (104,404       

Decrease in bank overdraft

           (11,875                          (23,924       
 

 

 

 

Cash used for financing activities

    (12,231,660     (7,581,315     (9,373,754     (4,715,980     (3,670,918     (10,460,764     (10,272,016
 

 

 

 
             
Cash                                                        

Net increase (decrease) in cash

                  1,293,337        940,609                      1,864,406   

Cash at beginning of year

                                                
 

 

 

 

Cash at end of year

                $ 1,293,337      $ 940,609                    $ 1,864,406   
 

 

 

 
             
Cash Flow Information                                                        

Cash paid during the year for interest and fees

  $ 584,082      $ 1,916,012      $ 1,424,310      $ 1,020,009      $ 1,369,836      $ 2,425,755      $ 2,360,242   
 

 

 

 
             
Non-cash Financing Activities                                                        

Capital shares issued in reinvestment of dividends paid to Common Shareholders

  $ 597,054      $ 995,097      $ 1,237,551      $ 844,464      $ 563,444      $ 3,576,025      $ 1,764,861   
 

 

 

 

 

See Notes to Financial Statements.      
                
   ANNUAL REPORT    APRIL 30, 2013    67


Table of Contents
Financial Highlights    BlackRock MuniAssets Fund, Inc. (MUA)

 

    Year Ended April 30,    

Period

June 1, 2008
to April 30,

2009

   

Year Ended
May 31,

2008

 
    2013     2012     2011     2010      
           
Per Share Operating Performance                                                

Net asset value, beginning of period

  $ 13.47      $ 12.14      $ 12.63      $ 10.59      $ 12.79      $ 13.87   
 

 

 

 

Net investment income1

    0.77        0.76        0.73        0.80        0.72        0.78   

Net realized and unrealized gain (loss)

    0.90        1.32        (0.46     2.06        (2.18     (1.04
 

 

 

 

Net increase (decrease) from investment operations

    1.67        2.08        0.27        2.86        (1.46     (0.26
 

 

 

 
Dividends and distributions from:2            

Net investment income

    (0.78     (0.75     (0.76     (0.82     (0.74     (0.82

Net realized gain

                                       (0.00 )3 
 

 

 

 

Total dividends and distributions

    (0.78     (0.75     (0.76     (0.82     (0.74     (0.82
 

 

 

 

Net asset value, end of period

  $ 14.36      $ 13.47      $ 12.14      $ 12.63      $ 10.59      $ 12.79   
 

 

 

 

Market price, end of period

  $ 13.96      $ 13.15      $ 11.27      $ 12.65      $ 10.91      $ 13.35   
 

 

 

 
           
Total Investment Return4                                                

Based on net asset value

    12.70%        17.90%        2.31%        27.72%        (11.29 )%5      (1.90)%   
 

 

 

 

Based on market price

    12.22%        23.99%        (5.17)%        24.17%        (12.45 )%5      (7.12)%   
 

 

 

 
           
Ratios to Average Net Assets                                                

Total expenses

    0.83%        0.77%        0.78%        0.72%        0.77% 6      0.70%   
 

 

 

 

Total expenses after fees waived and paid indirectly

    0.83%        0.77%        0.78%        0.72%        0.76% 6      0.69%   
 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense and fees7

    0.71%        0.70%        0.74%        0.67%        0.70% 6      0.66%   
 

 

 

 

Net investment income

    5.52%        6.00%        6.07%        6.72%        7.13% 6      5.81%   
 

 

 

 
           
Supplemental Data                                                

Net assets, end of period (000)

  $ 513,923      $ 481,598      $ 433,891      $ 266,831      $ 221,899      $ 266,913   
 

 

 

 

Portfolio turnover

    19%        28%        24%        44%        23%        23%   
 

 

 

 

 

1   

Based on average shares outstanding.

 

2   

Dividends and distributions are determined in accordance with federal income tax regulations.

 

3   

Amount is greater than $(0.01) per share.

 

4   

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.

 

5   

Aggregate total investment return.

 

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.      
                
68    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Financial Highlights    BlackRock MuniEnhanced Fund, Inc. (MEN)

 

    Year Ended April 30,    

Period
February 1, 2009
to April 30,

2009

   

Year Ended
January 31,

2009

 
    2013     2012     2011     2010      
           
Per Share Operating Performance                                                

Net asset value, beginning of period

  $ 12.12      $ 10.30      $ 10.90      $ 9.77      $ 9.15      $ 11.16   
 

 

 

 

Net investment income1

    0.71        0.69        0.73        0.75        0.18        0.72   

Net realized and unrealized gain (loss)

    0.50        1.82        (0.62     1.04        0.58        (2.02

Dividends to AMPS shareholders from net investment income

           (0.00 )2      (0.03     (0.03     (0.01     (0.19
 

 

 

 

Net increase (decrease) from investment operations

    1.21        2.51        0.08        1.76        0.75        (1.49
 

 

 

 

Dividends to Common shareholders from net investment income3

    (0.70     (0.69     (0.68     (0.63     (0.13     (0.52
 

 

 

 

Net asset value, end of period

  $ 12.63      $ 12.12      $ 10.30      $ 10.90      $ 9.77      $ 9.15   
 

 

 

 

Market price, end of period

  $ 12.65      $ 11.66      $ 9.99      $ 10.81      $ 8.88      $ 8.31   
 

 

 

 
           
Total Investment Return Applicable to Common Shareholders4                                                

Based on net asset value

    10.16%        25.12%        0.78%        18.76%        8.40% 5      (13.19)%   
 

 

 

 

Based on market price

    14.69%        24.11%        (1.44)%        29.59%        8.48% 5      (17.46)%   
 

 

 

 
           
Ratios to Average Net Assets Applicable to Common Shareholders                                                

Total expenses6

    1.49%        1.70%        1.24%        1.20%        1.46% 7      1.77%   
 

 

 

 

Total expenses after fees waived and paid indirectly6

    1.49%        1.70%        1.24%        1.20%        1.45% 7      1.76%   
 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs6,8

    0.96% 9      1.35% 9      1.09%        1.04%        1.22% 7      1.18%   
 

 

 

 

Net investment income6

    5.65%        6.12%        6.89%        7.17%        7.72% 7      7.43%   
 

 

 

 

Dividends to AMPS shareholders

           0.03%        0.29%        0.32%        0.56% 7      1.92%   
 

 

 

 

Net investment income to Common Shareholders

    5.65%        6.09%        6.60%        6.85%        7.16% 7      5.51%   
 

 

 

 
           
Supplemental Data                                                

Net assets applicable to Common Shareholder, end of period (000)

  $ 373,259      $ 357,017      $ 303,264      $ 320,083      $ 287,078      $ 368,689   
 

 

 

 

AMPS outstanding at $25,000 liquidation preference, end of period (000)

                $ 142,575      $ 142,575      $ 158,850      $ 158,850   
 

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 142,500      $ 142,500                               
 

 

 

 

Portfolio turnover

    12%        22%        9%        23%        6%        24%   
 

 

 

 

Asset coverage per AMPS at $25,000 liquidation preference, end of period (000)

                $ 78,179      $ 81,128      $ 70,185      $ 67,294   
 

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $ 361,936      $ 350,538                               
 

 

 

 

 

1   

Based on average shares outstanding.

 

2   

Amount is greater than $(0.01) per share.

 

3   

Dividends are determined in accordance with federal income tax regulations.

 

4   

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.

 

5   

Aggregate total investment return.

 

6   

Do not reflect the effect of dividends to AMPS shareholders.

 

7   

Annualized.

 

8   

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.

 

9   

For the years ended April 30, 2013 and April 30, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees were 0.91% and 0.98%, respectively.

 

See Notes to Financial Statements.      
                
   ANNUAL REPORT    APRIL 30, 2013    69


Table of Contents
Financial Highlights    BlackRock MuniHoldings Fund, Inc. (MHD)

 

    Year Ended April 30,  
    2013     2012     2011     2010     2009  
         
Per Share Operating Performance                                        

Net asset value, beginning of year

  $ 17.36      $ 14.67      $ 15.75      $ 13.27      $ 15.20   
 

 

 

 

Net investment income1

    1.07        1.12        1.14        1.13        1.07   

Net realized and unrealized gain (loss)

    1.01        2.67        (1.01     2.39        (1.94

Distributions to VMTP Shareholders from net realized gain

    (0.01                            
Dividends and distributions to AMPS shareholders from:          

Net investment income

           (0.01     (0.03     (0.03     (0.18

Net realized gain

                  (0.00 )2      (0.00 )2      (0.01
 

 

 

 

Net increase (decrease) from investment operations

    2.07        3.78        0.10        3.49        (1.06
 

 

 

 
Dividends and distributions to Common Shareholders from:3          

Net investment income

    (1.12     (1.09     (1.07     (0.99     (0.85

Net realized gain

    (0.19            (0.11     (0.02     (0.02
 

 

 

 

Total dividends and distributions to Common Shareholders

    (1.31     (1.09     (1.18     (1.01     (0.87
 

 

 

 

Net asset value, end of year

  $ 18.12      $ 17.36      $ 14.67      $ 15.75      $ 13.27   
 

 

 

 

Market price, end of year

  $ 18.20      $ 18.08      $ 14.51      $ 15.70      $ 11.97   
 

 

 

 
         
Total Investment Return Applicable to Common Shareholders4                                        

Based on net asset value

    12.20%        26.57%        0.57%        27.31%        (6.24)%   
 

 

 

 

Based on market price

    8.21%        33.28%        (0.21)%        40.68%        (12.97)%   
 

 

 

 
         
Ratio to Average Net Assets Applicable to Common Shareholders                                        

Total expenses5

    1.60%        1.41%        1.28%        1.25%        1.65%   
 

 

 

 

Total expenses after fees waived and paid indirectly5

    1.60%        1.41%        1.28%        1.25%        1.64%   
 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs5,6

    1.02%        1.09% 7      1.13%        1.11%        1.25%   
 

 

 

 

Net investment income5

    5.92%        6.95%        7.41%        7.67%        7.98%   
 

 

 

 

Dividends to AMPS shareholders

           0.09%        0.20%        0.24%        1.32%   
 

 

 

 

Net investment income to Common Shareholders

    5.92%        6.86%        7.21%        7.43%        6.66%   
 

 

 

 
         
Supplemental Data                                        

Net assets applicable to Common Shareholders, end of year (000)

  $ 255,911      $ 243,989      $ 205,368      $ 219,133      $ 184,685   
 

 

 

 

AMPS outstanding at $25,000 liquidation preference, end of year (000)

                $ 83,700      $ 83,700      $ 91,925   
 

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 83,700      $ 83,700                        
 

 

 

 

Portfolio turnover

    16%        19%        15%        41%        19%   
 

 

 

 

Asset coverage per AMPS at $25,000 liquidation preference, end of year

                $ 86,342      $ 90,454      $ 75,230   
 

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of year

  $ 405,748      $ 391,505                        
 

 

 

 

 

1   

Based on average Common Shares outstanding.

 

2   

Amount is greater than $(0.01) per share.

 

3   

Dividends and distributions are determined in accordance with federal income tax regulations.

 

4   

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.

 

5   

Do not reflect the effect of dividends to AMPS shareholders.

 

6   

Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively.

 

7   

For the year ended April 30, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.05%.

 

 

See Notes to Financial Statements.      
                
70    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Financial Highlights    BlackRock MuniHoldings Fund II, Inc. (MUH)

 

    Year Ended April 30,    

Period

August 1, 2008
to April 30,

2009

   

Year Ended

July 31,

2008

 
    2013     2012     2011     2010      
           
Per Share Operating Performance                                                

Net asset value, beginning of period

  $ 16.23      $ 13.74      $ 14.65      $ 12.47      $ 13.66      $ 14.78   
 

 

 

 

Net investment income1

    0.98        1.03        1.03        1.02        0.72        1.04   

Net realized and unrealized gain (loss)

    0.93        2.45        (0.88     2.08        (1.22     (1.14

Distributions to VMTP Shareholders from net realized gain

    (0.01                                   
Dividends and distributions to AMPS Shareholders from:            

Net investment income

           (0.01     (0.02     (0.02     (0.10     (0.26

Net realized gain

                  (0.00 )2                      
 

 

 

 

Net increase (decrease) from investment operations

    1.90        3.47        0.13        3.08        (0.60     (0.36
 

 

 

 
Dividends and distributions to Common Shareholders from:3            

Net investment income

    (1.04     (0.98     (0.97     (0.90     (0.59     (0.76

Net realized gain

    (0.16            (0.07                     
 

 

 

 

Total dividends and distributions to Common Shareholders

    (1.20     (0.98     (1.04     (0.90     (0.59     (0.76
 

 

 

 

Net asset value, end of period

  $ 16.93      $ 16.23      $ 13.74      $ 14.65      $ 12.47      $ 13.66   
 

 

 

 

Market price, end of period

  $ 16.75      $ 16.46      $ 13.35      $ 14.68      $ 11.33      $ 13.01   
 

 

 

 
           
Total Investment Return Applicable to Common Shareholders4                                                

Based on net asset value

    11.99%        26.08%        0.92%        25.71%        (3.55 )%5      (2.30)%   
 

 

 

 

Based on market price

    9.25%        31.60%        (2.14)%        38.64%        (7.99 )%5      (1.69)%   
 

 

 

 
           
Ratios to Average Net Assets Applicable to Common Shareholders                                                

Total expenses6

    1.59%        1.37%        1.23%        1.25%        1.60% 7      1.55%   
 

 

 

 

Total expenses after fees waived and paid indirectly6

    1.59%        1.37%        1.23%        1.25%        1.60% 7      1.55%   
 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs6,8

    1.03%        1.07% 9      1.07%        1.10%        1.22% 7      1.18%   
 

 

 

 

Net investment income6

    5.81%        6.81%        7.18%        7.41%        7.84% 7      7.07%   
 

 

 

 

Dividends to AMPS shareholders

           0.05%        0.14%        0.16%        1.07% 7      1.79%   
 

 

 

 

Net investment income to Common Shareholders

    5.81%        6.76%        7.04%        7.25%        6.77% 7      5.28%   
 

 

 

 
           
Supplemental Data                                                

Net assets applicable to Common Shareholders, end of period (000)

  $ 191,366      $ 182,624      $ 154,259      $ 163,722      $ 139,377      $ 152,633   
 

 

 

 

AMPS outstanding at $25,000 liquidation preference, end of period (000)

                $ 55,050      $ 55,050      $ 61,000      $ 61,000   
 

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 55,000      $ 55,000                               
 

 

 

 

Portfolio turnover

    16%        18%        15%        41%        19%        28%   
 

 

 

 

Asset coverage per AMPS at $25,000 liquidation preference, end of period

                $ 95,056      $ 99,353      $ 81,123      $ 87,562   
 

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 447,938      $ 432,044                               
 

 

 

 

 

1   

Based on average Common Shares outstanding.

 

2   

Amount is greater than $(0.01) per share.

 

3   

Dividends are determined in accordance with federal income tax regulations.

 

4   

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.

 

5   

Aggregate total investment return.

 

6   

Do not reflect the effect of dividends to AMPS shareholders.

 

7   

Annualized.

 

8   

Interest expense and fees relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively.

 

9   

For the year ended April 30, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.03%.

 

See Notes to Financial Statements.      
                
   ANNUAL REPORT    APRIL 30, 2013    71


Table of Contents
Financial Highlights    BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

    Year Ended April 30,  
    2013     2012     2011     2010     2009  
         
Per Share Operating Performance                                        

Net asset value, beginning of year

  $ 14.61      $ 12.48      $ 13.34      $ 12.27      $ 13.31   
 

 

 

 

Net investment income1

    0.83        0.89        0.91        0.94        0.93   

Net realized and unrealized gain (loss)

    0.76        2.14        (0.85     0.97        (1.20

Dividends to AMPS shareholders from net investment income

           (0.01     (0.03     (0.03     (0.19
 

 

 

 

Net increase (decrease) from investment operations

    1.59        3.02        0.03        1.88        (0.46
 

 

 

 

Dividends to Common Shareholders from net investment income2

    (0.89     (0.89     (0.89     (0.81     (0.58
 

 

 

 

Net asset value, end of year

  $ 15.31      $ 14.61      $ 12.48      $ 13.34      $ 12.27   
 

 

 

 

Market price, end of year

  $ 14.92      $ 14.52      $ 12.31      $ 13.40      $ 10.87   
 

 

 

 
         
Total Investment Return Applicable to Common Shareholders3                           

Based on net asset value

    11.06%        24.96%        0.21%        16.05%        (2.52)%   
 

 

 

 

Based on market price

    8.90%        25.90%        (1.60)%        31.59%        (3.97)%   
 

 

 

 
         
Ratios to Average Net Assets Applicable to Common Shareholders                           

Total expenses

    1.80%        1.49% 4      1.34% 4      1.36% 4      1.88% 4 
 

 

 

 

Total expenses after fees waived

    1.72%        1.41% 4      1.25% 4      1.20% 4      1.65% 4 
 

 

 

 

Total expenses after fees waived and excluding interest expense, fees and amortization of offering costs5

    1.00%        1.06% 4,6      1.10% 4      1.04% 4      1.17% 4 
 

 

 

 

Net investment income

    5.48%        6.50% 4      7.04% 4      7.23% 4      7.69% 4 
 

 

 

 

Dividends to AMPS shareholders

           0.08%        0.21%        0.24%        1.61%   
 

 

 

 

Net investment income to Common Shareholders

    5.48%        6.42%        6.83%        6.99%        6.08%   
 

 

 

 
         
Supplemental Data                           

Net assets applicable to Common Shareholders, end of year (000)

  $ 199,236      $ 189,567      $ 161,720      $ 171,977      $ 158,061   
 

 

 

 

AMPS outstanding at $25,000 liquidation preference, end of year (000)

                $ 87,000      $ 87,000      $ 94,200   
 

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 87,000      $ 87,000                        
 

 

 

 

Portfolio turnover

    34%        30%        28%        22%        35%   
 

 

 

 

Asset coverage per AMPS at $25,000 liquidation preference, end of year

                $ 71,472      $ 74,420      $ 66,951   
 

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of year

  $ 329,007      $ 317,893                        
 

 

 

 

 

1   

Based on average Common Shares outstanding.

 

2   

Dividends are determined in accordance with federal income tax regulations.

 

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  

Do not reflect the effect of dividends to AMPS shareholders.

 

5   

Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively.

 

6   

For the year ended April 30, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.01%.

 

 

See Notes to Financial Statements.      
                
72    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Financial Highlights   BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

    Year Ended April 30,     Period
June 1, 2008
to April 30,
2009
    Year Ended
May 31,
2008
 
    2013     2012     2011     2010      
           
Per Share Operating Performance                                   

Net asset value, beginning of period

  $ 16.21      $ 14.45      $ 14.75      $ 13.05      $ 14.45      $ 15.10   
 

 

 

 

Net investment income1

    0.82        0.86        0.95        1.02        0.89        1.04   

Net realized and unrealized gain (loss)

    0.58        1.76        (0.31     1.57        (1.42     (0.63

Distributions to VRDP Shareholders from net realized gain

    (0.01                                   
Dividends and distributions to AMPS shareholders from:            

Net investment income

                  (0.10     (0.11     (0.23     (0.33
 

 

 

 

Net increase (decrease) from investment operations

    1.39        2.62        0.54        2.48        (0.76     0.08   
 

 

 

 
Dividends and distributions to Common Shareholders from:2            

Net investment income

    (0.87     (0.86     (0.84     (0.78     (0.64     (0.73

Net realized gain

    (0.13                                   
 

 

 

 

Total dividends and distributions to Common Shareholders

    (1.00     (0.86     (0.84     (0.78     (0.64     (0.73
 

 

 

 

Net asset value, end of period

  $ 16.60      $ 16.21      $ 14.45      $ 14.75      $ 13.05      $ 14.45   
 

 

 

 

Market price, end of period

  $ 16.12      $ 16.45      $ 13.65      $ 14.13      $ 11.77      $ 13.70   
 

 

 

 
           
Total Investment Return Applicable to Common Shareholders3                                   

Based on net asset value

    8.78%        18.74%        3.86%        19.85%        (4.56 )%4      0.86%   
 

 

 

 

Based on market price

    4.09%        27.56%        2.41%        27.29%        (9.21 )%4      (2.76)%   
 

 

 

 
           
Ratios to Average Net Assets Applicable to Common Shareholders                                   

Total expenses5

    1.91%        1.88%        1.45%        1.20%        1.44% 6      1.30%   
 

 

 

 

Total expenses after fees waived and paid indirectly5

    1.91%        1.88%        1.43%        1.10%        1.25% 6      1.07%   
 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs5,7

    1.35% 8      1.65% 8      1.30%        1.01%        1.02% 6      0.90%   
 

 

 

 

Net investment income5

    4.93%        5.58%        6.48%        7.22%        7.46% 6      6.97%   
 

 

 

 

Dividend to AMPS shareholders

                  0.70%        0.81%        1.94%        2.23%   
 

 

 

 

Net investment income to Common Shareholders

    4.93%        5.58%        5.78%        6.41%        5.52%        4.74%   
 

 

 

 
           
Supplemental Data                                   

Net assets applicable to Common Shareholders, end of period (000)

  $ 635,652      $ 617,437      $ 549,516      $ 561,140      $ 496,247      $ 549,415   
 

 

 

 

AMPS outstanding at $25,000 liquidation preference, end of period (000)

                       $ 287,175      $ 287,175      $ 320,000   
 

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

         $ 287,100      $ 287,100                        
 

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 287,100                                      
 

 

 

 

Portfolio turnover

    16%        27%        21%        29%        13%        14%   
 

 

 

 

Asset coverage per AMPS at $25,000 liquidation preference, end of period

                       $ 73,857      $ 68,207      $ 67,941   
 

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

         $ 315,060      $ 291,402                        
 

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 321,405                                      
 

 

 

 

 

1   

Based on average shares outstanding.

 

2   

Dividends are determined in accordance with federal income tax regulations.

 

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/VMTP 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.

 

8   

For the years ended April 30, 2013 and April 30, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering cost, liquidity and remarketing fees was 0.98% and 0.99%, respectively.

 

See Notes to Financial Statements.      
                
   ANNUAL REPORT    APRIL 30, 2013    73


Table of Contents
Financial Highlights    BlackRock MuniVest Fund II, Inc. (MVT)

 

    Year Ended April 30,    

Period

November 1, 2008
to April 30,

2009

    Year Ended
October 31,
2008
 
    2013     2012     2011     2010      
           
Per Share Operating Performance                                   

Net asset value, beginning of period

  $ 15.91      $ 13.47      $ 14.41      $ 11.95      $ 10.95      $ 14.49   
 

 

 

 

Net investment income1

    1.06        1.12        1.14        1.18        0.53        1.12   

Net realized and unrealized gain (loss)

    0.82        2.41        (0.99     2.32        0.95        (3.49

Dividends to AMPS shareholders from net investment income

           (0.02     (0.04     (0.05     (0.05     (0.32
 

 

 

 

Net increase (decrease) from investment operations

    1.88        3.51        0.11        3.45        1.43        (2.69
 

 

 

 

Dividends to Common Shareholders from net investment income2

    (1.10     (1.07     (1.05     (0.99     (0.43     (0.85
 

 

 

 

Net asset value, end of period

  $ 16.69      $ 15.91      $ 13.47      $ 14.41      $ 11.95      $ 10.95   
 

 

 

 

Market price, end of period

  $ 17.31      $ 16.75      $ 13.72      $ 14.94      $ 11.65      $ 9.75   
 

 

 

 
           
Total Investment Return Applicable to Common Shareholders3                                   

Based on net asset value

    11.95%        26.86%        0.73%        29.75%        13.71% 4      (19.33)%   
 

 

 

 

Based on market price

    10.28%        31.13%        (1.04)%        37.99%        24.49% 4      (25.18)%   
 

 

 

 
           
Ratios to Average Net Assets Applicable to Common Shareholders                                   

Total expenses5

    1.66%        1.41%        1.23%        1.25%        1.51% 6      1.67%   
 

 

 

 

Total expenses after fees waived and excluding interest expense, fees and amortization of offering costs5,7

    0.96%        1.04% 8      1.07%        1.10%        1.26% 6      1.16%   
 

 

 

 

Net investment income5

    6.43%        7.57%        8.14%        8.72%        9.77% 6      8.03%   
 

 

 

 

Dividends to AMPS shareholders

           0.15%        0.32%        0.36%        0.95% 6      2.31%   
 

 

 

 

Net investment income to Common Shareholders

    6.43%        7.42%        7.82%        8.36%        8.82%        5.72%   
 

 

 

 
           
Supplemental Data                                   

Net assets applicable to Common Shareholders, end of period (000)

  $ 348,998      $ 330,941      $ 278,284      $ 295,465      $ 243,583      $ 223,210   
 

 

 

 

AMPS outstanding at $25,000 liquidation preference, end of period (000)

                $ 140,000      $ 140,000      $ 150,800      $ 150,800   
 

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 140,000      $ 140,000                               
 

 

 

 

Portfolio turnover

    15%        13%        16%        30%        9%        49%   
 

 

 

 

Asset coverage per AMPS at $25,000 liquidation preference, end of period

                $ 74,698      $ 77,767      $ 65,388      $ 62,019   
 

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 349,284      $ 336,386                               
 

 

 

 

 

1   

Based on average Common Shares outstanding.

 

2   

Dividends are determined in accordance with federal income tax regulations.

 

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 VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively.

 

8   

For the year ended April 30, 2012, the total expense ratios after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.99%.

 

 

See Notes to Financial Statements.      
                
74    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Notes to Financial Statements     

 

1. Organization and Significant Accounting Policies:

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”) and BlackRock MuniVest Fund II, Inc. (“MVT”) each, a “Fund”, and, collectively, the “Funds” are registered under 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 of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reported period. 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:

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 determine the fair value of their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Funds for all financial instruments.

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.

Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) options are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

In the event that application of these methods of valuation results in a price for an investment that 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 by the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deem relevant consistent with the principles of fair value measurement, which include the market approach, income approach and/or cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Funds’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

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

 

                
   ANNUAL REPORT    APRIL 30, 2013    75


Table of Contents
Notes to Financial Statements (continued)     

 

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 a special purpose entity established by a third party sponsor into which a fund, or an agent on behalf of a fund, transfers municipal bonds into a trust (“TOB Trust”). 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, (“TOB Trust Certificates”), which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. If multiple funds participate in the same TOB, the rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation.

The TOB Residuals held by a Fund include the right of a Fund (1) to cause the holders of a proportional share of the TOB Trust certificates to tender their certificates at par plus accrued interest upon the occurrence of certain mandatory tender events defined in the TOB agreements, and (2) to transfer, subject to a specified number of days’ prior notice, a corresponding share of the municipal bonds from the TOB to a Fund. The TOB may also be collapsed without the consent of a Fund, as the TOB Residual holder, 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 renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond and a judgment or ruling that interest on the municipal bond is subject to federal income taxation. Upon the occurrence of a Termination Event, the TOB would generally be liquidated in full with the proceeds typically applied first to any accrued fees owed to the trustee, remarketing agent and liquidity provider, and then to the holders of the TOB Trust Certificates up to par plus accrued interest owed on the TOB Trust Certificates, with the balance paid out to the TOB Residual holder. During the year ended April 30, 2013, no TOBs in which the Funds participated in were terminated without the consent of the Funds.

The cash received by the TOB from the sale of the TOB Trust Certificates, less transaction expenses, is paid to a Fund. The Funds typically invest 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 issued are shown in other liabilities in the Statements of Assets and Liabilities. The carrying amount of each Fund’s payable to the holders of the TOB Trust Certificates as reported in Statements of Assets and Liabilities as TOB Trust Certificates approximates its fair value.

The Funds may invest in TOBs on either a non-recourse or recourse basis. TOB Trusts are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider of par plus accrued interest on any business day prior to the occurrence of the termination events described above. When a Fund invests in TOBs on a non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event, the Liquidity Provider will typically liquidate all or a portion of the municipal securities held in the TOB Trust and then fund, on a net basis, the balance, if any, of the amount owed under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB on a recourse basis, the Fund will typically enter into a reimbursement agreement with the Liquidity Provider where the Fund is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a Fund investing in a recourse TOB will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB, these losses will be shared ratably in proportion to their participation. The recourse TOB Trusts, if any, are identified in the Schedules of Investments.

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 TOB Trust Certificates have interest rates that generally reset weekly and their holders have the option to tender such certificates to the TOB for redemption at par at each reset date. At April 30, 2013, 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

  $ 140,431,134      $ 76,451,238        0.22% - 0.55%   

MEN

  $ 163,289,497      $ 81,244,091        0.22% - 0.52%   

MHD

  $ 128,030,924      $ 69,752,555        0.18% - 0.47%   

MUH

  $ 102,166,484      $ 56,354,474        0.18% - 0.47%   

MUS

  $ 94,626,711      $ 48,934,200        0.22% - 0.48%   

MUI

  $ 196,977,870      $ 105,938,708        0.22% - 0.35%   

MVT

  $ 189,033,351      $ 99,386,335        0.18% - 0.47%   

For the year ended April 30, 2013, 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

    65,519,243        0.91

MEN

    72,835,990        0.69

MHD

    68,510,022        0.74

MUH

    56,107,973        0.73

MUS

    49,488,550        0.72

MUI

    102,030,703        0.72

MVT

    97,783,184        0.73

 

                
76    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Notes to Financial Statements (continued)     

 

Should short-term interest rates rise, the Funds’ investments in TOBs may adversely affect the Funds’ net investment income and dividends paid 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 each Fund either deliver collateral or segregate assets in connection with certain investments (e.g., TOBs and financial futures contracts), each Fund will, consistent with SEC rules and/or certain interpretive letters issued by the 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, a Fund engaging in such transactions may have requirements to deliver/deposit securities to/with an exchange or broker-dealer as collateral for certain investments.

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. 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 character 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 Preferred Shareholders are accrued and determined as described in Note 7.

Income Taxes: It is the Funds’ 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 their taxable income to their 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 the Fund’s US federal tax returns remains open for each of the four years ended April 30, 2013. The statutes of limitations on the 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 Standards: In December 2011, the Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or similar agreements, which are eligible for offset in the Statements of Assets and Liabilities and will require an entity to disclose both gross and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statement disclosures.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Fund’s Board, the 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 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 Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund. Deferred compensation liabilities are included in officer’s and directors’ fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan.

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/or to economically hedge their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange or OTC.

Financial Futures Contracts: The Funds purchase and/or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are agreements between the Funds and a 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, financial 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. Upon entering into a financial futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s

 

                
   ANNUAL REPORT    APRIL 30, 2013    77


Table of Contents
Notes to Financial Statements (continued)     

 

size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited is recorded on the Statements of Assets and Liabilities as cash pledged for financial futures contracts. 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 variation margin 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.

Options: The Funds purchase and write call and put options to increase or decrease their exposure to underlying instruments (including equity risk, interest rate risk and/or commodity price risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Funds purchase (write) an option, an amount equal to the premium paid (received) by the Funds is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Funds enter into a closing transaction), the Funds realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Funds write a call option, such option is “covered,” meaning that the Funds hold the underlying instrument subject to being called by the option counterparty. When the Funds write a put option, such option is covered by cash in an amount sufficient to cover the obligation.

In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the Funds may not be able to enter into a closing transaction due to an illiquid market. Exercise of an option written could result in the Funds purchasing or selling a security at a price different from the current market value.

A derivative contract may suffer a mark to market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract. A Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by such Fund. For OTC options purchased, each Fund bears the risk of loss of the amount of the premiums paid plus the positive change in market values net of any collateral held by such Fund should the counterparty fail to perform under the contracts. Options written by the Funds do not typically give rise to counterparty credit risk, as options written generally obligate the Funds, and not, the counterparty to perform. With exchange traded purchased options and futures and centrally cleared swaps, there is minimal counterparty credit risk to the Funds since the exchange’s clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. However, credit risk still exists in exchange traded futures with respect to initial and variation margin that is held in a broker’s customer accounts. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, US bankruptcy laws will typically allocate that shortfall on a pro rata basis across all the broker’s customers, potentially resulting in losses to the Funds.

Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearinghouse for exchange traded and centrally cleared derivatives (financial futures contracts). Brokers can ask for margining in excess of the minimum in certain circumstances. To the extent amounts due to the Funds from its counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

 

                
78    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Notes to Financial Statements (continued)     

 

 

Derivative Financial Instruments Categorized by Risk Exposure:  
Fair Values of Derivative Financial Instruments as of April 30, 2013  
    

Liability Derivatives

 
    

 

  MUA     MEN     MHD     MUH     MUS     MUI     MVT  
      Statements of Assets
and Liabilities Location
 

Value

 
Interest rate contracts:              

Financial futures contracts

   Net unrealized depreciation1   $ (430,054   $ (230,522   $ (356,659   $ (159,993   $ (251,787   $ (498,996   $ (389,910

1   Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

       

The Effect of Derivative Financial Instruments in the Statements of Operations Year Ended April 30, 2013  
         Net Realized Gain (Loss) From  
         MUA     MEN     MHD     MUH     MUS     MUI     MVT  
Interest rate contracts:                 

Financial futures contracts

  $ (839,471   $ (1,130,971   $ (850,913   $ (640,707   $ (736,213   $ (3,012,130   $ (1,154,575

Options2

                                       (207,604       
    

 

 

 

Total

     $ (839,471   $ (1,130,971   $ (850,913   $ (640,707   $ (736,213   $ (3,219,734   $ (1,154,575
    

 

 

 

2   Options purchased are included in the net realized gain(loss) from investments.

      

           Net Change in Unrealized Appreciation/Depreciation on  
         MUA     MEN     MHD     MUH     MUS     MUI     MVT  
Interest rate contracts:                 

Financial futures contracts

       $ 50,134      $ 86,421      $ (10,541   $ 101,182      $ 33,578      $ 894,560      $ 80,569   

 

For the year ended April 30, 2013, 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

    46        40        45        23        47        118        52   

Average notional value of contracts sold

  $ 6,134,531      $ 5,334,375      $ 6,034,512      $ 3,000,586      $ 6,201,211      $ 15,620,980      $ 6,868,008   
Options:              

Average number of option contracts purchased

                                       328 3        

Average notional value of option contracts purchased

                                     $ 51,289 3        
  3   

Actual contract amount shown due to limited activity.

 

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).

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 annual rates:

 

MUA

    0.55

MEN

    0.50

MHD

    0.55

MUH

    0.55

MUS

    0.55

MUI

    0.55

MVT

    0.50

Average daily net assets are the average daily value of each Fund’s total assets minus the sum of its accrued liabilities.

 

                
   ANNUAL REPORT    APRIL 30, 2013    79


Table of Contents
Notes to Financial Statements (continued)     

 

 

The Manager, for MUS, voluntarily agreed to waive its investment advisory fee on the proceeds of the Preferred Shares and TOBs that exceed 35% of total assets minus the sum of its accrued liabilities. This amount is included in fees waived by Manager in the Statements of Operations. For the year ended April 30, 2013, the waiver was $166,024.

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 in connection with each Fund’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by Manager in the Statements of Operations. For the year ended April 31, 2013, the amounts waived were as follows:

 

MUA

  $ 1,153   

MEN

  $ 3,398   

MHD

  $ 245   

MUH

  $ 317   

MUS

  $ 422   

MUI

  $ 1,072   

MVT

  $ 297   

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 a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in officer and directors in the Statements of Operations.

4. Investments:

Purchases and sales of investments, excluding short-term securities for the year ended April 30, 2013, were as follows:

 

     Purchases     Sales  

MUA

  $ 120,146,643      $ 107,811,996   

MEN

  $ 87,008,461      $ 66,761,002   

MHD

  $ 70,246,213      $ 63,029,571   

MUH

  $ 52,525,469      $ 47,498,840   

MUS

  $ 129,647,581      $ 112,947,861   

MUI

  $ 174,736,969      $ 157,571,658   

MVT

  $ 89,603,724      $ 83,642,985   

 

5. Income Tax Information:

US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of April 30, 2013 attributable to amortization methods on fixed income securities, expenses characterized as distributions, non-deductible expenses, distributions received from a regulated investment company and the reclassification of distributions were reclassified to the following accounts:

 

            MUA     MEN     MHD     MUH     MUS     MUI     MVT  

Paid-in capital

  

         $ (371,239   $ (73,224   $ (60,556   $ (73,778   $ (1,131,569   $ (98,376

Undistributed net investment income

  

  $ 16,748      $ 377,569      $ 59,789      $ 107,113      $ 175,767      $ 1,143,238      $ 98,376   

Undistributed net realized gain (accumulated net realized loss)

   

  $ (16,748   $ (6,330   $ 13,435      $ (46,557   $ (101,989   $ (11,669       

 

The tax character of distributions paid during the fiscal years ended April 30, 2013 and April 30, 2012 was as follows:

 

  

            MUA     MEN     MHD     MUH     MUS     MUI     MVT  

Tax-exempt income1

    04/30/13      $ 26,817,515      $ 21,934,599      $ 16,372,680      $ 11,783,319      $ 12,543,128      $ 34,575,076      $ 24,390,475   
    04/30/12        26,806,448        21,041,552        15,837,794        11,353,000        12,032,695        33,498,893        23,223,910   

Ordinary income2

    04/30/13        954,620        7,220        961,986        1,055,751               966,224        119,119   
    04/30/12        119,408               58,968        39,399               42,826        25,448   

Long-term capital gains3.

    04/30/13                      2,189,737        1,419,112               4,569,048          
    04/30/12                                                    
   

 

 

 

Total

    04/30/13      $ 27,772,135      $ 21,941,819      $ 19,524,403      $ 14,258,182      $ 12,543,128      $ 40,110,348      $ 24,509,594   
   

 

 

 
    04/30/12      $ 26,925,856      $ 21,041,552      $ 15,896,762      $ 11,392,399      $ 12,032,695      $ 33,541,719      $ 23,249,358   
   

 

 

 

 

1  The Funds designate these amounts paid during the fiscal year ended April 30, 2013, as exempt-interest dividends.

2  Ordinary income consists primarily of taxable income recognized from market discount and net short-term capital gains. Additionally, all ordinary income distributions are comprised of interest related dividends from non-US residents and are eligible for exemption from US withholding tax for nonresident aliens and foreign corporations.

3  The Funds designate these amounts paid during the fiscal year ended April 30, 2013, as capital gain dividends.

 

As of April 30, 2013, the tax components of accumulated net earnings were as follows:

 

     

      

     

  

            MUA     MEN     MHD     MUH     MUS     MUI     MVT  

Undistributed tax-exempt income

  

  $ 1,388,429      $ 6,447,958      $ 3,490,679      $ 3,353,409      $ 2,614,747      $ 7,522,585      $ 4,693,625   

Undistributed ordinary income

  

    95,302        24        241,822        574,381        10,387        422,747        13,096   

Undistributed long-term capital gains

  

                         571,417               1,878,099          

Capital loss carryforwards

  

    (13,776,128     (7,948,481                   (7,109,092            (2,741,816

Net unrealized gains4

  

    46,558,020        58,924,295        41,884,696        31,386,481        28,500,153        82,183,207        60,972,703   

Qualified late-year losses5

  

    (337,066     (23,996     (278,873                          (119,123
   

 

 

 

Total

    $ 33,928,557      $ 57,399,800      $ 45,338,324      $ 35,885,688      $ 24,016,195      $ 92,006,638      $ 62,818,485   
   

 

 

 

 

                
80    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Notes to Financial Statements (continued)     

 

  4  

The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales and straddles, amortization and accretion methods of premiums and discounts on fixed income securities, the accrual of income on securities in default, the realization for tax purposes of unrealized gains/losses on certain futures contracts, the deferral of compensation to Directors and the treatment of residual interests in tender option bond trusts.

  5   

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the year ending April 30, 2014.

As of April 30, 2013, 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     MVT  

2014

  $ 1,573,000                        

2015

    5,065,527                        

2016

    901,327      $ 2,450,150             $ 2,741,816   

2017

    3,645,754        3,540,378      $ 494,294          

2018

    396,366        1,225,298        6,614,798          

2019

    2,194,154        732,655                 
 

 

 

 

Total

  $   13,776,128      $     7,948,481      $     7,109,092      $     2,741,816   
 

 

 

 

During the year ended April 30, 2013, the Funds listed below utilized the following amounts of their respective capital loss carryforward:

 

MUA

  $ 4,878,817   

MEN

  $ 1,856,235   

MUS

  $ 5,700,017   

MUI

  $ 560,259   

MVT

  $ 2,256,360   

As of April 30, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

     MUA     MEN     MHD     MUH     MUS     MUI     MVT  

Tax cost

  $ 462,680,535      $ 452,065,472      $ 295,515,124      $ 213,545,265      $ 265,639,161      $ 839,066,161      $ 423,813,382   
 

 

 

 

Gross unrealized appreciation

  $ 62,415,412      $ 60,831,511      $ 43,510,034      $ 32,668,130      $ 29,260,727      $ 85,505,802      $ 65,969,091   

Gross unrealized depreciation

    (15,593,845     (1,830,189     (1,625,338     (1,281,649     (760,280     (3,138,651     (4,180,625
 

 

 

 

Net unrealized appreciation

  $ 46,821,567      $ 59,001,322      $ 41,884,696      $ 31,386,481      $ 28,500,447      $ 82,367,151      $ 61,788,466   
 

 

 

 

 

6. Concentration, Market and Credit Risk:

MEN, MHD, MUH, MUS, MUI and MVT 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 counterparty 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 counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

As of April 30, 2013, MUA, MHD, MUH and MVT invested a significant portion of their assets in securities in the health and transportation sectors. MEN invested a significant portion of its assets in securities in the county/city/special district/school district, transportation and state sectors. MUS invested a significant portion of its assets in securities in the county/city/special district/school district 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 state sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

The Funds may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Funds reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Fund.

 

                
   ANNUAL REPORT    APRIL 30, 2013    81


Table of Contents
Notes to Financial Statements (continued)     

 

7. Capital Share Transactions:

Each Fund is authorized to issue 200 million shares, all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares outstanding is $0.10. The par value for each Fund’s Preferred Shares outstanding is $0.10. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders.

Common Shares

For the years shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

    

Year Ended

April 30, 2013

   

Year Ended

April 30, 2012

 

MUA

    41,756          

MEN

    78,843        12,832   

MHD

    68,594        56,498   

MUH

    50,084        24,312   

MUS

    36,838        17,824   

MUI

    215,573        45,759   

MVT

    105,288        139,364   

Preferred Shares

Each Fund’s Preferred Shares rank prior to the Fund’s Common Shares as to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of the Funds. The 1940 Act prohibits the declaration of any dividend on the Funds’ Common Shares or the repurchase of the Funds’ Common Shares if the Funds 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 instrument, the Funds 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 the Funds fail to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares governing instrument 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.

VRDP Shares

MEN and MUI (collectively, the “VRDP Funds”), 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, as amended, (the “Securities Act”) and include a liquidity feature, pursuant to a liquidity agreement, that allows the holders of VRDP Shares to have their shares purchased by the liquidity provider in the event of a failed remarketing. The VRDP Funds are required to redeem the VRDP Shares owned by the liquidity provider after six months of continuous, unsuccessful remarketing. Upon the occurrence of the first unsuccessful remarketing, the VRDP Funds are required to segregate liquid assets to fund the redemption. The VRDP Shares are subject to certain restrictions on transfer. MUI redeemed all of its VRDP Shares on December 21, 2012.

The VRDP Shares outstanding as of the year ended April 30, 2013 were as follows:

 

     Issue
Date
    Shares
Issued
    Aggregate
Principal
    Maturity
Date
 

MEN

    5/19/11        1,425      $ 142,500,000        6/01/41   

The VRDP Funds entered into a fee agreement with the liquidity provider that may require a per annum liquidity fee payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations. The fee agreement between MEN and the liquidity provider is for a three-year term and is scheduled to expire on July 9, 2015 unless renewed or terminated in advance.

The fee agreement for MUI’s VRDP Shares with the liquidity provider, which was for a two-year term and was scheduled to expire on December 28, 2012, was terminated upon issuance of the VMTP Shares. Any such liquidity fees incurred by MUI through the date of issuance of the VMTP Shares are shown as liquidity fees in the Statements of Operations.

In the event the fee agreement is not renewed or is terminated in advance, and MEN does not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. MEN is required to redeem any VRDP Shares purchased by the liquidity provider six months after the purchase date. Immediately after the purchase of any VRDP Shares by the liquidity provider, MEN is required to begin to segregate liquid assets with MEN’s custodian to fund the redemption. There is no assurance MEN will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

MEN is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, MEN is required to begin to segregate liquid assets with the Fund’s custodian to fund the redemption. In addition, MEN is required to redeem certain of its outstanding VRDP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the VRDP Shares may be redeemed, in whole or in part, at any time at the option of MEN. 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 the VRDP Shares prior to the initial termination date of the fee agreement, MEN must pay the respective liquidity provider fees on such redeemed VRDP Shares for the remaining term of the fee agreement up to the initial termination date.

 

                
82    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Notes to Financial Statements (continued)     

 

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. 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. At the date of issuance, the VRDP Shares were assigned a long-term rating of Aaa from Moody’s and AAA from Fitch. In May 2012, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of April 30, 2013, the VRDP Shares were assigned a long-term rating of Aa1 from Moody’s under its new ratings methodology. The VRDP Shares continue to be assigned a long-term rating of AAA from Fitch.

For financial reporting purposes, the VRDP Shares are considered debt of the issuer; therefore, the liquidation value, which approximates fair value, of the 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 accrued and paid on the VRDP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP Shares are generally classified as tax-exempt income for tax-reporting purposes.

The VRDP Funds may incur remarketing fees of 0.10% on the aggregate principal amount of all the VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. All of MEN and MUI’s remarketable VRDP Shares that were tendered for remarketing during the year ended April 30, 2013 were successfully remarketed.

The annualized dividend rates for the VRDP Shares for the year ended April 30, 2013 were as follows:

 

      Rate  

MEN

     0.99%   

MUI

     0.27%   

On June 20, 2012, MEN announced a special rate period for a three-year term ending June 24, 2015 with respect to its VRDP Shares. The liquidity and fee agreements remain in effect for the duration of the special rate period and the VRDP shares are still subject to mandatory redemption by MEN on maturity date. The VRDP Shares will not be remarketed or subject to optional or mandatory tender events during such time. During the special rate period, MEN is required to maintain the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares. MEN will not pay any liquidity and remarketing fees during the special rate period and instead will pay dividends monthly based on the sum of the Securities Industry and Financial Markets Association Municipal Swap Index (SIFMA) and a percentage per annum based on the long-term ratings assigned to the VRDP Shares. The short-term ratings were withdrawn by Moody’s, Fitch and/or S&P. Short-term ratings may be re-assigned upon the termination of the special rate period when the VRDP Shares revert back to remarketable securities.

 

If MEN redeems the VRDP Shares on a date that is one year or more before the end of the special rate period and the VRDP Shares are rated above A1/A by Moody’s and Fitch respectively, then such redemption is subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. After June 24, 2015, the holder of the VRDP Shares and MEN may mutually agree to extend the special rate period. If the special rate period is not extended, the VRDP Shares will revert back to remarketable securities and will be remarketed and available for purchase by qualified institutional investors.

VRDP Shares issued and outstanding for MEN remained constant for the year ended April 30, 2013.

VMTP Shares

MHD, MUH, MUS, MUI and MVT (collectively, the “VMTP Funds”), have issued Series W-7 VMTP Shares, $100,000 liquidation value per share, in a privately negotiated offering and sale of VMTP Shares exempt from registration under the Securities Act.

The VMTP Shares outstanding for the year ended April 30, 2013 were as follows:

 

    

Issue

Date

    Shares
Issued
    Aggregate
Principal
    Term
Date
 

MHD

    12/16/11        837      $ 83,700,000        1/02/15   

MUH

    12/16/11        550      $ 55,000,000        1/02/15   

MUS

    12/16/11        870      $ 87,000,000        1/02/15   

MUI

    12/07/12        2,871      $ 287,100,000        1/04/16   

MVT

    12/16/11        1,400      $ 140,000,000        1/02/15   

Each VMTP Fund is required to redeem its VMTP Shares on the term date, unless earlier redeemed or repurchased or unless extended. There is no assurance that the term of a Fund’s VMTP Shares will be extended or that a Fund’s VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months prior to term date, each VMTP Fund is required to begin to segregate liquid assets with the Fund’s custodian to fund the redemption. In addition, each VMTP Fund is required to redeem certain of its outstanding VMTP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, a Fund’s VMTP Shares may be redeemed, in whole or in part, at any time at the option of the Fund. The redemption price per VMTP Share is equal to the liquidation value per share plus any outstanding unpaid dividends and applicable redemption premium. If the Funds redeem the VMTP Shares on a date that is one year or more prior to the term date and the VMTP Shares are rated above A1/A+ by Moody’s and Fitch, respectively, then such redemption is subject to a prescribed redemption premium (up to 103% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining to the term date, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. The VMTP Shares are subject to certain restrictions on transfer, and a Fund may also be required to register the VMTP Shares for sale under the Securities Act under certain circumstances. In addition, amendments to the VMTP governing document generally require the consent of the holders of VMTP Shares.

 

                
   ANNUAL REPORT    APRIL 30, 2013    83


Table of Contents
Notes to Financial Statements (continued)     

 

Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to SIFMA. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by Moody’s and Fitch. At the date of issuance, the VMTP Shares were assigned long-term ratings of Aaa from Moody’s and AAA from Fitch. In May 2012, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of April 30, 2013, the VMTP Shares were assigned a long-term rating of Aa1 from Moody’s under its new rating methodology. The VMTP shares continue to be assigned a long-term rating of AAA from Fitch. The dividend rate on the VMTP Shares is subject to a step-up spread if the Funds fail to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and maintaining certain asset coverage and leverage requirements.

The average annualized dividend rates for the VMTP Shares for the year ended April 30, 2013 were as follows:

 

      Rate  

MHD

     1.16%   

MUH

     1.16%   

MUS

     1.16%   

MUI

     1.12%   

MVT

     1.16%   

For financial reporting purposes, the VMTP Shares are considered debt of the issuer; therefore the liquidation value, which approximates fair value, of the VMTP 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 accrued and paid on the VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes.

VMTP Shares issued and outstanding for MHD, MUH, MUS and MVT remained constant for the year ended April 30, 2013.

Offering Costs: The Funds, with the exception of MUA, incurred costs in connection with the issuance of VRDP Shares and/or VMTP Shares. For VRDP Shares, these costs were recorded as a deferred charge and will be amortized over the 30-year life of the VRDP Shares with the exception of upfront fees paid to the liquidity provider, which were amortized over the life of the liquidity agreement. For VMTP Shares, these costs were recorded as a deferred charge and will be amortized over the 3-year life of the VMTP Shares. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

AMPS

The AMPS were redeemable at the option of each Fund, 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 were 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 a Fund, as set forth in each Fund’s Articles Supplementary (the “Governing Instrument”) were not satisfied.

From February 13, 2008 to the redemption dates listed below, the AMPS of the Funds failed to clear any of their auctions. A failed auction was not an event of default for the Funds, but it had negative impact on the liquidity of AMPS. A failed auction occurs when there are more sellers of a fund’s AMPS than buyers.

As of April 30, 2013, the Funds did not have any AMPS outstanding.

During the year ended April 30, 2012, MEN, MHD, MUH, MUS and MVT 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   

MHD

  A     1/11/12        1,473      $ 36,825,000   
  B     1/06/12        1,473      $ 36,825,000   
    C     1/10/12        402      $ 10,050,000   

MUH

  A     1/11/12        1,101      $ 27,525,000   
    B     1/09/12        1,101      $ 27,525,000   

MUS

  A     1/06/12        1,740      $ 43,500,000   
    B     1/10/12        1,740      $ 43,500,000   

MVT

  A     1/12/12        1,440      $ 36,000,000   
  B     1/19/12        1,440      $ 36,000,000   
  C     1/12/12        1,440      $ 36,000,000   
    D     1/10/12        1,280      $ 32,000,000   

The Funds financed the AMPS redemptions with the proceeds received from the issuance of VRDP Shares or VMTP Shares as follows:

 

MEN

  $ 142,500,000   

MHD

  $ 83,700,000   

MUH

  $ 55,000,000   

MUS

  $ 87,000,000   

MVT

  $ 140,000,000   

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:

Each Fund paid a net investment income dividend on June 3, 2013 to Common Shareholders of record on May 15, 2013 as follows:

 

     Common Dividend
Per Share
 

MUA

  $ 0.0625   

MEN

  $ 0.0580   

MHD

  $ 0.0915   

MUH

  $ 0.0830   

MUS

  $ 0.0740   

MUI

  $ 0.0715   

MVT

  $ 0.0910   

 

                
84    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Notes to Financial Statements (concluded)     

 

Additionally, the Funds declared a net investment income dividend in the following amounts per share on June 3, 2013 payable to Common Shareholders of record on June 14, 2013:

 

     Common Dividend
Per Share
 

MUA

  $ 0.0625   

MEN

  $ 0.0605   

MHD

  $ 0.0915   

MUH

  $ 0.0830   

MUS

  $ 0.0675   

MUI

  $ 0.0715   

MVT

  $ 0.0910   

The dividends declared on VRDP Shares or VMTP Shares for the period May 1, 2013 to May 31, 2013 were as follows:

 

     Series    

VRDP/VMTP

Dividends

Declared

 

MEN

    W7      $ 144,257   

MHD

    W7      $ 83,379   

MUH

    W7      $ 54,789   

MUS

    W7      $ 86,666   

MUI

    W7      $ 285,999   

MVT

    W7      $ 139,463   

 

                
   ANNUAL REPORT    APRIL 30, 2013    85


Table of Contents
Report of Independent Registered Public Accounting Firm      

 

To the Shareholders and Boards of Directors of

BlackRock MuniAssets Fund, Inc.,

BlackRock MuniEnhanced Fund, Inc.,

BlackRock MuniHoldings Fund, Inc.,

BlackRock MuniHoldings Fund II, Inc.,

BlackRock MuniHoldings Quality Fund, Inc.,

BlackRock Muni Intermediate Duration Fund, Inc., and

BlackRock MuniVest Fund II, Inc.:

We have audited the accompanying statements of assets and liabilities of BlackRock MuniAssets Fund, Inc., BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc., BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc. (collectively, the “Funds”), including the schedules of investments, as of April 30, 2013, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2013, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of BlackRock MuniAssets Fund, Inc., BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc., BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc., as of April 30, 2013, the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

June 24, 2013

 

                
86    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Automatic Dividend Reinvestment Plan     

 

Pursuant to each Fund’s Dividend Reinvestment Plan (the “Reinvestment Plan”), Common Shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the “Reinvestment Plan Agent”) in the respective Fund’s shares pursuant to the Reinvestment Plan. Shareholders who do not participate in the Reinvestment Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street name or other nominee name, then to the nominee) by the Reinvestment Plan Agent, which serves as agent for the shareholders in administering the Reinvestment Plan.

After the Funds declare a dividend or determine to make a capital gain distribution, the Reinvestment Plan Agent will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Funds (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market or on the Fund’s primary exchange (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market premium”), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares acquired on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the dividend payment date, the dollar amount of the dividend will be divided by 95% of the market price on the dividend payment date. If, on the dividend payment date, the NAV is greater than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend amount in open-market purchases, or if the market discount shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any un-invested portion in newly issued shares. Investments in newly issued shares made in this manner would be made pursuant to the same process described above and the date of issue for such newly issued shares will substitute for the dividend payment date.

Participation in the Reinvestment Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend record date. Additionally, the Reinvestment Plan Agent seeks to process notices received after the record date but prior to the payable date and such notices often will become effective by the payable date. Where late notices are not processed by the applicable payable date, such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Reinvestment Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Fund. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Reinvestment Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable on such dividends or distributions.

Each Fund reserves the right to amend or terminate the Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan. However, each Fund reserves the right to amend the Reinvestment Plan to include a service charge payable by the participants. Participants in MEN and MUI that request a sale of shares are subject to a $2.50 sales fee and a $0.15 per share fee. Per share fees include any applicable brokerage commissions the Reinvestment Plan Agent is required to pay. Participants in MUA, MHD, MUH, MUS and MVT that request a sale of shares are subject to a $0.02 per share sold brokerage commission. All correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at http://www.computershare.com/blackrock, or in writing to Computershare, P.O. Box 43078, Providence, RI 02940-3078, Telephone: (800) 699-1236. Overnight correspondence should be directed to the Reinvestment Plan Agent at 250 Royall Street, Canton, MA 02021.

 

                
   ANNUAL REPORT    APRIL 30, 2013    87


Table of Contents
Officers and Directors     

 

 

Name, Address
and Year of Birth
  Position(s)
Held with
Funds
 

Length

of Time

Served as
a Director2

  Principal Occupation(s) During Past Five Years   Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen
 

Public

Directorships

Independent Directors1                    

Richard E. Cavanagh

 

55 East 52nd Street

New York, NY 10055

 

1946

  Chairman of the Board and Director  

Since

2007

  Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life Insurance Company of America since 1998; Director, Arch Chemical (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor. The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007.  

94 RICs consisting of

90 Portfolios

  None

Karen P. Robards

 

55 East 52nd Street

New York, NY 10055

 

1950

  Vice Chairperson of the Board, Chairperson of the Audit Committee and Director   Since
2007
  Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Care Investment Trust, Inc. (health care real estate investment trust) from 2007 to 2010; Investment Banker at Morgan Stanley from 1976 to 1987.  

94 RICs consisting of

90 Portfolios

 

AtriCure, Inc.

(medical devices); Greenhill & Co., Inc.

Michael J. Castellano

 

55 East 52nd Street

New York, NY 10055

 

1946

  Director and Member of the Audit Committee   Since
2011
  Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) since 2009; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012.  

94 RICs consisting of

90 Portfolios

  None

Frank J. Fabozzi

 

55 East 52nd Street

New York, NY 10055

 

1948

  Director and Member of the Audit Committee   Since
2007
  Editor of and Consultant for The Journal of Portfolio Management since 2006; Professor of Finance, EDHEC Business School since 2011; Professor in the Practice of Finance and Becton Fellow, Yale University School of Management from 2006 to 2011; Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006.  

94 RICs consisting of

90 Portfolios

  None

Kathleen F. Feldstein

 

55 East 52nd Street

New York, NY 10055

 

1941

  Director   Since
2007
  President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003; Director, Catholic Charities of Boston since 2009.  

94 RICs consisting of

90 Portfolios

  The McClatchy Company (publishing)

James T. Flynn

 

55 East 52nd Street

New York, NY 10055

 

1939

  Director and Member of the Audit Committee   Since
2007
  Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.  

94 RICs consisting of

90 Portfolios

  None

Jerrold B. Harris

 

55 East 52nd Street

New York, NY 10055

 

1942

  Director   Since
2007
  Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000; Director of Delta Waterfowl Foundation from 2010 to 2012; President and Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999.  

94 RICs consisting of

90 Portfolios

 

BlackRock Kelso

Capital Corp. (business development company)

R. Glenn Hubbard

 

55 East 52nd Street

New York, NY 10055

 

1958

  Director   Since
2007
  Dean, Columbia Business School since 2004; Faculty member, Columbia Business School since 1988.  

94 RICs consisting of

90 Portfolios

  ADP (data and information services); KKR Financial Corporation (finance); Metropolitan Life Insurance Company (insurance)

 

                
88    ANNUAL REPORT    APRIL 30, 2013   


Table of Contents
Officers and Directors (continued)     

 

Name, Address
and Year of Birth
  Position(s)
Held with
Funds
 

Length

of Time

Served as
a Director2

  Principal Occupation(s) During Past Five Years   Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen
 

Public

Directorships

Independent Directors1 (concluded)                    

W.Carl Kester

 

55 East 52nd Street

New York, NY 10055

 

1951

  Director and Member of the Audit Committee   Since
2007
  George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981.  

94 RICs consisting of

90 Portfolios

  None
 

1  Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. In 2011, 2012, and 2013, the Board of Directors unanimously approved extending the mandatory retirement age for James T. Flynn and in 2013, the Board unanimously approved extending the mandatory retirement age for Kathleen F. Feldstein, in each case, by one additional year, which the Board believed would be in the best interest of shareholders. Mr. Flynn can serve until December 31 of the year in which he turns 75 and Ms. Feldstein can serve until December 31 of the year in which she turns 73. Mr. Flynn and Ms. Feldstein turn 75 and 73, respectively, in 2014.

 

2  Date shown is the earliest date a person has served for the Funds covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new fund boards in 2007. As a result, although the chart shows certain Directors as joining the Funds’ board in 2007, those Directors first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998.

Interested Directors3                         

Paul L. Audet

 

55 East 52nd Street

New York, NY 10055

 

1953

  Director   Since
2011
  Senior Managing Director of BlackRock and Head of U.S.Mutual Funds since 2011; Chair of the U.S. Mutual Funds Committee reporting to the Global Executive Committee since 2011; Head of BlackRock’s Real Estate business from 2008 to 2011; Member of BlackRock’s Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRock’s Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005.  

155 RICs consisting of

282 Portfolios

  None

Henry Gabbay

 

55 East 52nd Street

New York, NY 10055

 

1947

  Director   Since
2007
  Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Treasurer of certain closed- end funds in the BlackRock fund complex from 1989 to 2006.  

155 RICs consisting of

282 Portfolios.

  None
   

3   Mr. Audet is an “interested person,“as defined in the 1940 Act, of the Funds based on his position with BlackRock and its affiliates as well as his ownership of BlackRock securities. Mr. Gabbay is an “interested person” of the Funds based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of two complexes of BlackRock registered open-end funds, the BlackRock Equity-Liquidity Complex and the BlackRock Equity-Bond Complex. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The maximum age limitation may be waived as to any Director by action of a majority of the Directors upon finding good cause thereof.

 

                
   ANNUAL REPORT    APRIL 30, 2013    89


Table of Contents
Officers and Directors (concluded)     

 

 

Name, Address
and Year of Birth
  Position(s)
Held with
Funds
  Length of
Time Served
  Principal Occupation(s) During Past Five Years
Officers1               

John M. Perlowski

 

55 East 52nd Street
New York, NY 10055

 

1964

  President and Chief Executive Officer  

Since

2011

  Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Services since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.

Anne Ackerley

 

55 East 52nd Street
New York, NY 10055

 

1962

  Vice
President
 

Since

20072

  Managing Director of BlackRock since 2000; Chief Marketing Officer of BlackRock since 2012; President and Chief Executive Officer of the BlackRock-advised funds from 2009 to 2011; Vice President of the BlackRock-advised funds from 2007 to 2009; Chief Operating Officer of BlackRock’s Global Client Group from 2009 to 2012; Chief Operating Officer of BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006.

Brendan Kyne

 

55 East 52nd Street
New York, NY 10055

 

1977

  Vice
President
 

Since

2009

  Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009; Vice President of BlackRock from 2005 to 2008.

Robert W. Crothers

 

55 East 52nd Street

New York, NY 10055

 

1981

  Vice President  

Since

2012

  Director of BlackRock since 2011; Vice President of BlackRock from 2008 to 2010; Associate of BlackRock from 2006 to 2007.

Neal Andrews

 

55 East 52nd Street
New York, NY 10055

 

1966

  Chief
Financial
Officer
 

Since

2007

  Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.

Jay Fife

 

55 East 52nd Street
New York, NY 10055

 

1970

  Treasurer  

Since

2007

  Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.

Brian Kindelan

 

55 East 52nd Street
New York, NY 10055

 

1959

  Chief Compliance Officer and
Anti-Money Laundering Officer
 

Since

2007

  Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005.

Janey Ahn

 

55 East 52nd Street
New York, NY 10055

 

1975

  Secretary  

Since

2012

  Director of BlackRock since 2009; Vice President of BlackRock from 2008 to 2009; Assistant Secretary of the Funds from 2008 to 2012; Associate at Willkie Farr & Gallagher LLP from 2006 to 2008.
 

1  Officers of the Funds serve at the pleasure of the Board.

   

2  Ms. Ackerley was President and Chief Executive Officer from 2009 to 2011.

 

Investment Advisor

BlackRock Advisors, LLC Wilmington, DE 19809

 

Custodians

The Bank of New York Mellon3
New York, NY 10286

 

State Street Bank and
Trust Company
4
Boston, MA 02110

 

VRDP Tender and Paying Agent

and VMTP Redemption and Paying Agent

The Bank of New York Mellon New York, NY 10289

  

Accounting Agent

State Street Bank and
Trust Company
Boston, MA 02110

 

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom LLP New York, NY 10036

Sub-Advisor

BlackRock Investment Management, LLC

Princeton, NJ 08540

  Transfer Agent Computershare Trust Company, N.A.
Canton, MA 02021
 

VRDP Remarketing Agent Citigroup Global Markets Inc.5 New York, NY 10179

   Independent Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116   Address of the Funds 100 Bellevue Parkway Wilmington, DE 19809
    VRDP Liquidity Provider Citibank, N.A.5
New York, NY 10179
    
  3   

For MUA, MHD, MUH, MUS and MVT.

  4   

For MEN and MUI.

  5   

For MEN.

 

                
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Additional Information     

 

Regulation Regarding Derivatives

 

Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to registered investment companies to regulation by the CFTC if a fund invests more than a prescribed level of its net assets in CFTC-regulated futures, options and swaps (“CFTC Derivatives”), or if a fund markets itself as providing investment exposure to such instruments. To the extent a Fund uses CFTC-regulated futures, options and swaps, it intends to do so below such prescribed levels and will not market itself as a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock Advisors, LLC has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”) pursuant to Rule 4.5 under the CEA. BlackRock Advisors, LLC is not, therefore, subject to registration or regulation as a “commodity pool operator” under the CEA in respect to each Fund.

 

Fund Certification

 

The Funds are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Funds filed with the SEC the certification of their chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

 

Dividend Policy

 

Each Fund’s dividend policy is to distribute all or a portion of its net investment income to its 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.

 

                
   ANNUAL REPORT    APRIL 30, 2013    91


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Additional Information (continued)     

 

General Information

 

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 would delay or prevent a change in control of the Funds 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’ portfolios.

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 website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ websites 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.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. 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 the Funds at (800) 882-0052.

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) 882-0052.

 

                
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Additional Information (continued)     

 

General Information (concluded)

 

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) 882-0052; (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) 882-0052 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 as well as certain other material information as necessary from time to time. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to incorporate BlackRock’s website in this report.

 

 

                
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Additional Information (concluded)     

 

BlackRock Privacy Principles

 

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

 

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

 

                
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Table of Contents

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 may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

 

LOGO

 

CEMUNI7-4/13-AR    LOGO


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Item 2 –   Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.
Item 3 –   Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:
  Frank J. Fabozzi
  James T. Flynn
  W. Carl Kester
  Karen P. Robards
  The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.
  Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements.
  Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results.
Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.
  Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

 

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Item 4 –   Principal Accountant Fees and Services
  The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

 

      (a) Audit Fees    (b) Audit-Related Fees1    (c) Tax Fees2    (d) All Other Fees3
Entity Name   

Current

Fiscal Year
End

  

Previous

Fiscal Year
End

  

Current

Fiscal Year
End

   Previous
Fiscal Year
End
  

Current

Fiscal Year
End

   Previous
Fiscal Year
End
  

Current

Fiscal Year
End

   Previous
Fiscal Year
End
BlackRock Muni Intermediate Duration Fund, Inc.    $38,263    $38,000    $3,000    $0    $20,100    $19,600    $0    $0
  The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Fund Service Providers”):

 

      Current Fiscal Year End    Previous Fiscal Year End
(b) Audit-Related Fees1    $0    $0
(c) Tax Fees2    $0    $0
(d) All Other Fees3    $2,865,000    $2,970,000

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The nature of the services includes tax compliance, tax advice and tax planning.

3 Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by D&T with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

 

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Fund Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

 

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g.,

 

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unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

 

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

(f) Not Applicable

 

(g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Fund Service Providers were:

 

Entity Name   

Current Fiscal Year

End

  

Previous Fiscal Year

End

BlackRock Muni Intermediate Duration Fund, Inc.    $20,100    $19,600
 

Additionally, SSAE 16 Review (Formerly, SAS No. 70) fees for the current and previous fiscal years of $2,865,000 and $2,970,000, respectively, were billed by D&T to the Investment Adviser.

 

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of

Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5 –   Audit Committee of Listed Registrants
 

(a)   The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

 

       Michael Castellano

       Frank J. Fabozzi

       James T. Flynn

       W. Carl Kester

       Karen P. Robards

 

(b)  Not Applicable

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.

 

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  (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 –   Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of directors has delegated the voting of proxies for the Fund’s portfolio securities to the Investment Adviser pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at http://www.sec.gov.
Item 8 –   Portfolio Managers of Closed-End Management Investment Companies – as of April 30, 2013.
 

(a)(1)  The registrant is managed by a team of investment professionals comprised of Timothy Browse, Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock and Walter O’Connor, Managing Director at BlackRock. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and selection of its investments. Messrs. Browse, Jaeckel and O’Connor have been members of the registrant’s portfolio management team since 2008, 2006 and 2006, respectively.

 

Portfolio Manager    Biography
Timothy Browse    Director of BlackRock since 2008; Vice President of BlackRock from 2006 to 2007; Vice President of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2004 to 2006.
Theodore R. Jaeckel, Jr.    Managing Director of BlackRock since 2006; Managing Director of MLIM from 2005 to 2006; Director of MLIM from 1997 to 2005.
Walter O’Connor    Managing Director of BlackRock since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.

 

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(a)(2) As of April 30, 2013:

 

    

(ii) Number of Other Accounts Managed

and Assets by Account Type

  

(iii) Number of Other Accounts and

Assets for Which Advisory Fee is

Performance-Based

(i) Name of

Portfolio Manager

  

Other

Registered

Investment

Companies

  

Other Pooled

Investment

Vehicles

    

  

Other

Accounts

  

Other

Registered

Investment

Companies

  

Other Pooled

Investment

Vehicles

    

  

Other

Accounts

Timothy Browse    12    0    0    0    0    0
     $3.44 Billion    $0    $0    $0    $0    $0
Theodore R. Jaeckel, Jr.    63    0    0    0    0    0
     $27.03 Billion    $0    $0    $0    $0    $0
Walter O’Connor    63    0    0    0    0    0
     $27.03 Billion    $0    $0    $0    $0    $0

 

 

(iv)    Potential Material Conflicts of Interest

 

BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, Inc. its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, Inc. or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock, Inc.’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock, Inc. or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. It should also be noted that a portfolio manager may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts, subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts.

 

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Currently, the portfolio managers of the Fund are not entitled to receive a portion of incentive fees of other accounts.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock, Inc. has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.

(a)(3) As of April 30, 2013:

Portfolio Manager Compensation Overview

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.

Base Compensation.

Generally, portfolio managers receive base compensation based on their position with BlackRock, Inc.

Discretionary Incentive Compensation.

Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are:

 

Portfolio Manager    Benchmark

Theodore R. Jaeckel, Jr.

   A combination of peer based fund classifications or subsets thereof (e.g., Lipper Intermediate Debt Funds classification, Lipper NJ Municipal Debt Funds classification, Lipper Closed-End General Bond Fund classification, subset of Lipper Closed-End High Quality/Insured Muni Debt Leveraged Fund classification, subset of Lipper Closed-End Other Single State High Quality/Insured Muni Fund classification).

 

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Walter O’Connor

   A combination of market-based indices (e.g., Barclays Capital Muni Bond Index, Standard & Poor’s Municipal Bond Index), certain customized indices and certain fund industry peer groups.

Timothy Browse

   A combination of peer based fund classifications or subsets thereof (e.g., Lipper Intermediate Debt Funds classification, Lipper NJ Municipal Debt Funds classification).

Distribution of Discretionary Incentive Compensation

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. For some portfolio managers, discretionary incentive compensation is also distributed in deferred cash awards that notionally track the returns of select BlackRock investment products they manage and that vest ratably over a number of years. The BlackRock, Inc. restricted stock units, upon vesting, will be settled in BlackRock, Inc. common stock. Typically, the cash portion of the discretionary incentive compensation, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of discretionary incentive compensation in BlackRock stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. Providing a portion of discretionary incentive compensation in deferred cash awards that notionally track the BlackRock investment products they manage provides direct alignment with investment product results.

Long-Term Incentive Plan Awards — From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align their interests with long-term shareholder interests and motivate performance. Equity awards are generally granted in the form of BlackRock, Inc. restricted stock units that, once vested, settle in BlackRock, Inc. common stock. Messrs. Jaeckel and O’Connor have unvested long-term incentive awards.

Deferred Compensation Program — A portion of the compensation paid to eligible United States-based BlackRock employees may be voluntarily deferred at their election for defined periods of time into an account that tracks the performance of certain of the firm’s investment products. Any portfolio manager who is either a managing director or director at BlackRock is eligible to participate in the deferred compensation program.

Other Compensation Benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock, Inc. employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service

 

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  limit ($255,000 for 2013). The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock, Inc. contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the Purchase Date. All of the eligible portfolio managers are eligible to participate in these plans.
  (a)(4) Beneficial Ownership of Securities – As of April 30, 2013.

 

Portfolio Manager   

Dollar Range of Equity Securities

of the Fund Beneficially Owned

Timothy Browse    None
Theodore R. Jaeckel, Jr.    None
Walter O’Connor    None

 

  (b) Not Applicable
Item 9 –   Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.
Item 10 –  

Submissionof 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 – See Item 2

 

(a)(2) – Certifications – Attached hereto

 

(a)(3) – Not Applicable

 

(b) – Certifications – Attached hereto

 

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

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: July 2, 2013

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: July 2, 2013

 

By:    

  /s/ Neal J. Andrews                    
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Muni Intermediate Duration Fund, Inc.

Date: July 2, 2013

 

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