BLACKROCK MUNI INTERMEDIATE DURATION FUND, INC.

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: 04/30/2018

Date of reporting period: 10/31/2017


Item 1 – Report to Stockholders

 


OCTOBER 31, 2017

 

SEMI-ANNUAL REPORT (UNAUDITED)

  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


The Markets in Review

Dear Shareholder,

In the 12 months ended October 31, 2017, risk assets, such as stocks and high-yield bonds, continued to deliver strong performance. These markets showed great resilience during a period with big political surprises, including the aftermath of the U.K.’s vote to leave the European Union and the outcome of the U.S. presidential election, which brought only brief spikes in equity market volatility. In contrast, closely watched elections in France, the Netherlands, and Australia countered the isolationist and nationalist political developments in the U.K. and the United States.

Interest rates rose, which worked against high-quality assets with more interest rate sensitivity. Consequently, longer-term U.S. Treasuries posted negative returns, as rising energy prices, modest wage increases, and steady job growth led to expectations of higher inflation and further interest rate increases by the U.S. Federal Reserve (the “Fed”).

The market’s performance reflected reflationary expectations early in the reporting period, as investors began to sense that a global recovery was afoot. Thereafter, many countries throughout the world experienced sustained and synchronized growth for the first time since the financial crisis. Growth rates and inflation are still relatively low, but they are finally rising together.

The Fed responded to these positive developments by increasing short-term interest rates three times and setting expectations for additional interest rate increases. The Fed also began reducing the vast balance sheet reserves that had accumulated in the wake of the financial crisis. In October 2017, the Fed reduced its $4.5 trillion balance sheet by only $10 billion, while setting expectations for additional modest reductions and rate hikes in 2018.

By contrast, the European Central Bank (“ECB”) and the Bank of Japan (“BoJ”) both continued to expand their balance sheets despite nascent signs of sustained economic growth. The Eurozone and Japan are both approaching the limits of central banks’ ownership share of debt issued by their respective governments, which is a structural pressure point that limits their capacity to deliver additional monetary stimulus. In October 2017, the ECB announced plans to cut the amount of its bond purchases in half for 2018, while the BoJ reiterated its commitment to economic stimulus until the inflation rate rises to its target of 2.0%.

Emerging market growth also stabilized, as accelerating growth in China, the second largest economy in the world and the most influential of all developing economies, improved the outlook for corporate profits and economic growth across most developing nations. Chinese demand for commodities and other raw materials allayed concerns about the country’s banking system, leading to rising equity prices and foreign investment flows.

While escalating tensions between the United States and North Korea and our nation’s divided politics are significant concerns, benign credit conditions, modest inflation, solid corporate earnings, and the positive outlook for growth in the world’s largest economies have kept markets relatively tranquil.

High valuations across most assets have laid the groundwork for muted returns going forward. At current valuation levels, potential equity gains will likely be closely tied to the pace of earnings growth, which has remained solid thus far in 2017, particularly in emerging markets. In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of October 31, 2017
     6-month   12-month

U.S. large cap equities
(S&P 500® Index)

  9.10%   23.63%

U.S. small cap equities
(Russell 2000® Index)

  8.01   27.85

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

  10.74   23.44

Emerging market equities
(MSCI Emerging Markets Index)

  16.14   26.45

3-month Treasury bills
(BofA Merrill Lynch 3-Month
U.S. Treasury Bill Index)

  0.49   0.72

U.S. Treasury securities
(BofA Merrill Lynch
10-Year U.S. Treasury
Index)

  0.15   (2.98)

U.S. investment grade bonds
(Bloomberg Barclays U.S.
Aggregate Bond Index)

  1.58   0.90

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

  2.22   1.80

U.S. high yield bonds
(Bloomberg Barclays U.S. Corporate High Yield 2% Issuer
Capped Index)

  3.44   8.92
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT


Table of Contents

 

      Page  

The Markets in Review

     2  

Semi-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

     69  

Statements of Operations

     71  

Statements of Changes in Net Assets

     73  

Statements of Cash Flows

     77  

Financial Highlights

     79  

Notes to Financial Statements

     86  

Disclosure of Investment Advisory Agreements

     95  

Director and Officer Information

     99  

Additional Information

     100  

Glossary of Terms Used in this Report

     103  

 

 

     3  


Municipal Market Overview  For the Reporting Period Ended October 31, 2017

 

Municipal Market Conditions

Municipal bonds experienced modestly positive performance for the period as a result of rising interest rates spurring from generally stronger economic data, signs of inflation pressures, Fed monetary policy normalization, and market expectations for pro-growth fiscal policy. However, ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in continued demand for fixed income investments. More specifically, investors favored the income, attractive relative yield, and stability of municipal bonds amid bouts of interest rate volatility (bond prices rise as rates fall) resulting from geopolitical tensions, the contentious U.S. election, and evolving global central bank policies. During the 12 months ended October 31, 2017, municipal bond funds experienced net outflows of approximately $3 billion (based on data from the Investment Company Institute). The asset class came under pressure post the November U.S. election as a result of uncertainty surrounding potential tax-reform, though expectation that tax reform was likely to be delayed or watered down quickly eased investor concerns.

 

For the same 12-month period, total new issuance remained healthy from a historical perspective at $376 billion (though well below the robust $441 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 51%) as issuers continued to take advantage of low interest rates and a flat yield curve to reduce their borrowing costs.   S&P Municipal Bond Index
  Total Returns as of October 31, 2017
    6 months:   2.22%
  12 months:   1.80%

 

A Closer Look at Yields

 

 

LOGO

From October 31, 2016 to October 31, 2017, yields on AAA-rated 30-year municipal bonds increased by 27 basis points (“bps”) from 2.56% to 2.83%, while 10-year rates rose by 28 bps from 1.73% to 2.01% and 5-year rates increased 29 bps from 1.13% to 1.42% (as measured by Thomson Municipal Market Data). The municipal yield curve steepened modestly over the 12-month period with the spread between 2- and 30-year maturities steepening by just 2 bps.

During the same time period, on a relative basis, tax-exempt municipal bonds strongly outperformed U.S. Treasuries with the greatest outperformance experienced in the front and intermediate portions of the yield curve. The relative positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities became increasingly scarce. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

The majority of municipal credits remain strong, despite well-publicized distress among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — have exhibited markedly improved credit fundamentals during the slow national recovery. However, several states with the largest unfunded pension liabilities have seen their bond prices decline noticeably and remain vulnerable to additional price deterioration. On the local level, Chicago’s credit quality downgrade is an outlier relative to other cities due to its larger pension liability and inadequate funding remedies. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of October 31, 2017, and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (“AMT”). Capital gains distributions, if any, are taxable.

The Standard & Poor’s Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

 

4    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


The Benefits and Risks of Leveraging

 

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

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Funds (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Funds’ shareholders 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.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Fund’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Fund’s financing cost of leverage is significantly lower than the income earned on a Fund’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Funds’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds had not used leverage. 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 value of the Funds’ obligations under their respective leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that the Funds’ intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Fund’s Common Shares than if the Fund were not leveraged. In addition, 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 the Fund to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of the Funds’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Funds’ investment adviser will be higher than if the Funds did not use leverage.

To obtain leverage, each Fund has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) and Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Fund is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Fund may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Fund segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Fund’s obligations under the TOB Trust (including accrued interest), then the TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements imposed by the 1940 Act.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other asset without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and 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 instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS      5  


Fund Summary  as of October 31, 2017    BlackRock MuniAssets Fund, Inc.

 

Investment Objective

BlackRock MuniAssets Fund, Inc.’s (MUA) (the “Fund”) investment objective is to provide high current income exempt from U.S. 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 U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests at least 65% of its assets in municipal bonds that are rated in the medium to lower rating categories by nationally recognized rating services (for example, Baa or lower by Moody’s Investors Service, Inc. (“Moody’s”) or BBB or lower by Standard & Poor’s Corporation (“S&P”), or securities that are unrated but are deemed by the investment adviser to be of comparable quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on New York Stock Exchange (“NYSE”)

  MUA

Initial Offering Date

  June 25, 1993

Yield on Closing Market Price as of October 31, 2017 ($14.94)(a)

  4.62%

Tax Equivalent Yield(b)

  8.16%

Current Monthly Distribution per Common Share(c)

  $0.0575

Current Annualized Distribution per Common Share(c)

  $0.6900

Economic Leverage as of October 31, 2017(d)

  12%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c)  The monthly distribution per Common Share, declared on December 1, 2017, was decreased to $0.0545 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.  
  (d)  Represents TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUA(a)(b)

    3.26%        3.01%  

Lipper Closed-End High Yield Municipal Debt Funds(c)

    3.73%        3.64%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Fund’s premium to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Fund’s positions in longer-dated securities made the largest contribution to performance, as bonds in the 20- to 40-year maturity range outpaced the broader market.

 

  Investments in lower-rated investment-grade, below investment-grade and non-rated securities benefited performance at a time of robust investor risk appetites. Credit spreads narrowed considerably amid strong fund flows and investors’ ongoing search for yield.

 

  At the sector level, the largest contributions came from health care, transportation and tobacco issues. The Fund gained an additional benefit from investments in development districts and single-site project financings.

 

  Investments in high-quality, pre-refunded securities in the one- to five-year range declined in value amid the upward pressure on short-term interest rates fostered by the ongoing normalization of monetary policy. These positions, which the Fund acquired in a higher-rate environment, were retained due to their above average income.

 

  The Fund’s modest exposure to general obligation bonds issued by Puerto Rico, which suffered large price declines in the wake of hurricane damage on the island, also detracted.

 

 

6    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniAssets Fund, Inc.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on returns.

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.

Market Price and Net Asset Value Per Share Summary

 

     10/31/17     4/30/17      Change      High      Low  

Market Price

  $ 14.94     $ 14.82        0.81%      $ 15.84      $ 14.44  

Net Asset Value

  $ 14.15     $ 14.07        0.57%      $ 14.29      $ 14.05  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Health

    20     22

County/City/Special District/School District

    18       13  

Tobacco

    17       16  

Transportation

    17       19  

Education

    9       10  

Utilities

    8       8  

Corporate

    7       7  

State

    3       3  

Housing

    1       2  

 

    For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.  

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    14

2018

    8  

2019

    5  

2020

    13  

2021

    20  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AA/Aa

    20     19

A

    6       8  

BBB/Baa

    21       21  

BB/Ba

    9       9  

B/B

    12       11  

CCC/Caa

          1  

N/R(b)

    32       31  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (b)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 5%, respectively, of the Fund’s total investments.  
 

 

 

FUND SUMMARY      7  


Fund Summary  as of October 31, 2017    BlackRock MuniEnhanced Fund, Inc.

 

Investment Objective

BlackRock MuniEnhanced Fund, Inc.’s (MEN) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests primarily in long-term municipal bonds rated investment grade quality or, if unrated, are deemed to be of comparable quality by the investment adviser 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.

Fund Information

 

Symbol on NYSE

  MEN

Initial Offering Date

  March 2, 1989

Yield on Closing Market Price as of October 31, 2017 ($11.75)(a)

  5.77%

Tax Equivalent Yield(b)

  10.19%

Current Monthly Distribution per Common Share(c)

  $0.0565

Current Annualized Distribution per Common Share(c)

  $0.6780

Economic Leverage as of October 31, 2017(d)

  38%

 

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c)  The monthly distribution per Common Share, declared on December 1, 2017, was decreased to $0.048 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.  
  (d)  Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MEN(a)(b)

    3.40%        4.27%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  Portfolio income, enhanced by leverage, produced the largest positive contribution to performance in a period characterized by a mild decline in municipal bond yields. (Prices and yields move in opposite directions.)

 

  The Fund’s exposure to the long end of the yield curve aided results at a time of outperformance for longer-term bonds. Positions in lower-coupon bonds, including zero-coupon issues, contributed to performance due to their above-average interest rate sensitivity.

 

  The Fund’s position in New Jersey state-appropriated debt benefited from a meaningful tightening of yield spreads. At the sector level, transportation issues made a strong contribution to performance. Municipal bonds subject to the AMT, which outperformed in anticipation of possible tax law changes, also performed well.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on returns.

 

  Exposure to pre-refunded issues slightly hurt Fund results given the underperformance of short-term bonds.

 

  Reinvestment was a further detractor, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at materially lower prevailing rates.

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.

 

 

8    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniEnhanced Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      10/31/17      4/30/17      Change      High      Low  

Market Price

   $ 11.75      $ 11.69        0.51    $ 12.45      $ 11.61  

Net Asset Value

   $ 11.93      $ 11.77        1.36    $ 12.11      $ 11.75  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Transportation

    26     24

State

    17       15  

County/City/Special District/School District

    15       18  

Health

    15       12  

Utilities

    12       15  

Education

    9       11  

Corporate

    3       3  

Housing

    2       1  

Tobacco

    1       1  

 

    For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.  

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    3

2018

    9  

2019

    15  

2020

    3  

2021

    12  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    8     11

AA/Aa

    50       57  

A

    24       17  

BBB/Baa

    10       12  

BB/Ba

    2        

N/R(b)

    6       3  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (b)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.  
 

 

 

FUND SUMMARY      9  


Fund Summary  as of October 31, 2017    BlackRock MuniHoldings Fund, Inc.

 

Investment Objective

BlackRock MuniHoldings Fund, Inc.’s (MHD) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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.

Fund Information

 

Symbol on NYSE

  MHD

Initial Offering Date

  May 2, 1997

Yield on Closing Market Price as of October 31, 2017 ($16.59)(a)

  5.39%

Tax Equivalent Yield(b)

  9.52%

Current Monthly Distribution per Common Share(c)

  $0.0745

Current Annualized Distribution per Common Share(c)

  $0.8940

Economic Leverage as of October 31, 2017(d)

  38%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MHD(a)(b)

    2.48%        3.95%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Fund’s positions in longer-dated securities made the largest contribution to performance, as bonds in the 20- to 40-year maturity range outpaced the broader market.

 

  Investments in lower-rated securities within the investment-grade market benefited performance at a time of robust investor risk appetites. Credit spreads narrowed considerably amid strong fund flows and investors’ ongoing search for yield.

 

  At the sector level, the largest contributions came from state and local tax-backed, transportation and health care issues.

 

  Investments in high-quality, pre-refunded securities in the one- to five-year range declined in value amid the upward pressure on short-term interest rates fostered by the ongoing normalization of monetary policy. These positions, which the Fund acquired in a higher-rate environment, were retained due to their above average income.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on returns.

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.

 

 

10    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniHoldings Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17     4/30/17      Change      High      Low  

Market Price

  $ 16.59     $ 16.65        (0.36)%      $ 18.25      $ 16.48  

Net Asset Value

  $ 17.03     $ 16.85        1.07%       $ 17.24      $ 16.82  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Transportation

    23     24

Health

    20       19  

County/City/Special District/School District

    16       12  

State

    12       12  

Utilities

    9       11  

Education

    8       11  

Corporate

    6       6  

Tobacco

    6       5  

Housing(a)

           

 

  (a)  Representing less than 1% of the Fund’s total investments.  
    For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.  

CALL/MATURITY SCHEDULE (d)

 

Calendar Year Ended December 31,

       

2017

    5

2018

    5  

2019

    24  

2020

    11  

2021

    12  

 

  (d)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (b)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    3     5

AA/Aa

    47       47  

A

    19       19  

BBB/Baa

    16       16  

BB/Ba

    4       4  

B

    3       2  

N/R(c)

    8       7  

 

  (b)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (c)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 1% of the Fund’s total investments.  
 

 

 

FUND SUMMARY      11  


Fund Summary  as of October 31, 2017    BlackRock MuniHoldings Fund II, Inc.

 

Investment Objective

BlackRock MuniHoldings Fund II, Inc.’s (MUH) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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.

Fund Information

 

Symbol on NYSE

  MUH

Initial Offering Date

  February 27, 1998

Yield on Closing Market Price as of October 31, 2017 ($14.93)(a)

  5.43%

Tax Equivalent Yield(b)

  9.59%

Current Monthly Distribution per Common Share(c)

  $0.0675

Current Annualized Distribution per Common Share(c)

  $0.8100

Economic Leverage as of October 31, 2017(d)

  37%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUH(a)(b)

    (1.50)%        3.72%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Fund moved from a premium to NAV to a discount during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Fund’s positions in longer-dated securities made the largest contribution to performance, as bonds in the 20- to 40-year maturity range outpaced the broader market.

 

  Investments in lower-rated securities within the investment-grade market benefited performance at a time of robust investor risk appetites. Credit spreads narrowed considerably amid strong fund flows and investors’ ongoing search for yield.

 

  At the sector level, the largest contributions came from state and local tax-backed, transportation and utilities issues.

 

  Investments in high-quality, pre-refunded securities in the one- to five-year range declined in value amid the upward pressure on short-term interest rates fostered by the ongoing normalization of monetary policy. These positions, which the Fund acquired in a higher-rate environment, were retained due to their above average income.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on returns.

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.

 

 

12    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniHoldings Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17      4/30/17      Change      High      Low  

Market Price

  $ 14.93      $ 15.59        (4.23)%      $ 16.63      $ 14.91  

Net Asset Value

  $ 15.65      $ 15.52        0.84%       $ 15.85      $ 15.49  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Transportation

    22     23

Health

    19       19  

County/City/Special District/School District

    16       12  

State

    14       14  

Utilities

    9       11  

Education

    8       10  

Corporate

    6       6  

Tobacco

    5       4  

Housing

    1       1  

 

 

    For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.  

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    6

2018

    5  

2019

    26  

2020

    11  

2021

    12  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    4     6

AA/Aa

    49       50  

A

    18       18  

BBB/Baa

    15       15  

BB/Ba

    4       3  

B

    2       1  

N/R(b)

    8       7  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (b)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 1% of the Fund’s total investments.  
 

 

 

FUND SUMMARY      13  


Fund Summary  as of October 31, 2017    BlackRock MuniHoldings Quality Fund, Inc.

 

Investment Objective

BlackRock MuniHoldings Quality Fund, Inc.’s (MUS) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests at least 80% of its assets in investment grade municipal obligations, and obligations deemed to be of comparable quality by the investment adviser at the time of investment, 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.

Fund Information

 

Symbol on NYSE

  MUS

Initial Offering Date

  May 1, 1998

Yield on Closing Market Price as of October 31, 2017 ($13.34)(a)

  5.71%

Tax Equivalent Yield(b)

  10.09%

Current Monthly Distribution per Common Share(c)

  $0.0635

Current Annualized Distribution per Common Share(c)

  $0.7620

Economic Leverage as of October 31, 2017(d)

  39%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUS(a)(b)

    2.50%        2.88%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Fund posted a gain in the period, with positive performance coming from both income and rising bond prices.

 

  Geographically, positive returns were driven by exposure to Illinois and New Jersey bonds. Illinois passed its budget and moved closer to achieving fiscal balance and saw a stabilization of its credit rating. In New Jersey, legislation that redirected roughly $1 billion annually in lottery proceeds to the state’s pension funds helped stabilize its credit rating and contributed to positive returns for the New Jersey credits held in the Fund.

 

  Positions in the tax-backed (state), tax-backed (local) and transportation sectors were positive contributors to performance. Holdings in longer-term bonds also added value in the period.

 

  The Fund utilized a mix of U.S. Treasury futures contracts to help manage the risk of rising interest rates. This strategy was tactically adjusted throughout the period, resulting in a modestly positive contribution to performance.

 

  The Fund’s emphasis on higher-quality bonds was a headwind at a time of outperformance for issues rated below investment grade. Reinvestment was a further drag on results, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at materially lower prevailing rates.

 

  The Fund’s holdings in short-term, pre-refunded bonds, while producing positive returns, lagged somewhat due to the premium amortization that occurred as the bonds approached their call and maturity dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A premium occurs when the price of the bond has increased due to a decline in interest rates.)

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.

 

 

14    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniHoldings Quality Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17     4/30/17     Change     High     Low  

Market Price

    $13.34       $13.38       (0.30)%       $14.21       $13.34  

Net Asset Value

    $13.96       $13.95       0.07%        $14.17       $13.93  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Transportation

    35     38

County/City/Special District/School District

    24       25  

Utilities

    14       13  

Health

    10       11  

State

    6       5  

Education

    6       4  

Housing

    3       2  

Tobacco

    1       1  

Corporate

    1       1  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

CALL/MATURITY SCHEDULE (b)

 

Calendar Year Ended December 31,

       

2017

    % (c) 

2018

    24  

2019

    12  

2020

    4  

2021

    18  

 

  (b)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  (c)  Representing less than 1% of the Fund’s total investments.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    5     6

AA/Aa

    50       56  

A

    34       29  

BBB/Baa

    8       7  

N/R

    3       2  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
 

 

 

FUND SUMMARY      15  


Fund Summary  as of October 31, 2017    BlackRock Muni Intermediate Duration Fund, Inc.

 

Investment Objective

BlackRock Muni Intermediate Duration Fund, Inc.’s (MUI) (the “Fund”) investment objective is to provide common shareholders with high current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests at least 75% of its assets in municipal bonds rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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 expects to maintain a dollar-weighted average portfolio duration, as calculated by the investment adviser, of three to ten years. 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.

Fund Information

 

Symbol on NYSE

  MUI

Initial Offering Date

  August 1, 2003

Yield on Closing Market Price as of October 31, 2017 ($14.02)(a)

  4.24%

Tax Equivalent Yield(b)

  7.49%

Current Monthly Distribution per Common Share(c)

  $0.0495

Current Annualized Distribution per Common Share(c)

  $0.5940

Economic Leverage as of October 31, 2017(d)

  38%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUI(a)(b)

    2.64%        4.43%  

Lipper Intermediate Municipal Debt Funds(c)

    1.06%        3.01%  

 

  (a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b) The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  Concentrations in intermediate securities maturing in the 12- to 16-year range contributed to performance. The Fund’s use of leverage also boosted returns by enhancing income and amplifying the effect of rising bond prices.

 

  The Fund’s allocation to A and BBB rated investment-grade debt aided results, as lower-quality bonds outperformed. Positions in the transportation and tax-backed (state) sectors further helped performance, highlighted by the strong showing of New Jersey and Illinois issues.

 

  The Fund utilized a mix of U.S. Treasury futures contracts to help manage the risk of rising interest rates. This strategy was tactically adjusted throughout the period, resulting in a modestly positive contribution to performance.

 

  Positions in shorter-dated bonds, including high-quality pre-refunded securities, hurt results at a time in which shorter-term bonds lagged. The Fund’s more-seasoned holdings also detracted due to the premium amortization that occurred as the bonds approached their call and maturity dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A premium occurs when the price of the bond has increased due to a decline in interest rates.) Additionally, positions in higher-quality securities underperformed relative to lower-quality issues.

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.

 

 

16    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock Muni Intermediate Duration Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17      4/30/17      Change      High      Low  

Market Price

  $ 14.02      $ 13.96        0.43%      $ 14.41      $ 13.79  

Net Asset Value

  $ 15.50      $ 15.17        2.18%      $ 15.67      $ 15.14  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/17     4/30/17  

Transportation

    29     28

State

    16       12  

County/City/Special District/School District

    13       17  

Education

    13       14  

Health

    11       10  

Utilities

    10       11  

Corporate

    5       4  

Tobacco

    2       2  

Housing

    1       2  

 

    For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.  

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    2

2018

    4  

2019

    8  

2020

    8  

2021

    16  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    4     5

AA/Aa

    40       43  

A

    33       31  

BBB/Baa

    17       16  

BB/Ba

    1       1  

B

    1       1  

N/R(b)

    4       3  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (b)  The investment adviser evaluates the credit quality of unrated Investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 1%, respectively, of the Fund’s total investments.  
 

 

 

FUND SUMMARY      17  


Fund Summary  as of October 31, 2017    BlackRock MuniVest Fund II, Inc.

 

Investment Objective

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 U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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.

Fund Information

 

Symbol on NYSE

   MVT

Initial Offering Date

   March 29, 1993

Yield on Closing Market Price as of October 31, 2017 ($15.21)(a)

   5.76%

Tax Equivalent Yield(b)

   10.18%

Current Monthly Distribution per Common Share(c)

   $0.0730

Current Annualized Distribution per Common Share(c)

   $0.8760

Economic Leverage as of October 31, 2017(d)

   38%

 

  (a)  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.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. 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.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended October 31, 2017 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MVT(a)(b)

    1.29%        3.36%  

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.34%        3.81%  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Fund moved from a premium to NAV to a discount during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.  

Past performance is not indicative of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

The following discussion relates to the Fund’s absolute performance based on NAV:

 

  U.S. municipal bonds rallied in the six-month period due to the combination of fading prospects for tax reform during the early spring and summer, a positive balance of supply and demand in the market, and budget agreements in Illinois and Connecticut. Longer-term bonds outpaced shorter-term issues, reflecting the backdrop of muted inflation data and expectations for continued monetary policy tightening by the Fed.

 

  The Fund’s positions in longer-dated securities made the largest contribution to performance, as bonds in the 20- to 40-year maturity range outpaced the broader market.

 

  Investments in lower-rated securities within the investment-grade market benefited performance at a time of robust investor risk appetites. Credit spreads narrowed considerably amid strong fund flows and investors’ ongoing search for yield.

 

  At the sector level, the largest contributions came from state and local tax-backed, transportation and utilities issues.

 

  Investments in high-quality, pre-refunded securities in the one- to five-year range declined in value amid the upward pressure on short-term interest rates fostered by the ongoing normalization of monetary policy. These positions, which the Fund acquired in a higher-rate environment, were retained due to their above average income.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures, which had a small, positive effect on returns.

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.

 

 

18    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2017 (continued)    BlackRock MuniVest Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/17     4/30/17      Change      High      Low  

Market Price

  $ 15.21     $ 15.45        (1.55)%      $ 16.18      $ 15.10  

Net Asset Value

  $ 15.26     $ 15.19        0.46%       $ 15.46      $ 15.16  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector Allocation   10/31/17     4/30/17  

Transportation

    29     26

Health

    18       18  

County/City/Special District/School District

    14       12  

State

    12       14  

Utilities

    9       11  

Corporate

    6       6  

Tobacco

    6       5  

Education

    5       7  

Housing

    1       1  

 

    For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.  

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2017

    6

2018

    11  

2019

    22  

2020

    12  

2021

    11  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/17     4/30/17  

AAA/Aaa

    4     5

AA/Aa

    46       50  

A

    16       13  

BBB/Baa

    17       16  

BB/Ba

    4       4  

B

    3       2  

N/R(b)

    10       10  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.  
  (b)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2017 and April 30, 2017 the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 3%, respectively, of the Fund’s total investments.  
 

 

 

FUND SUMMARY      19  


Schedule of Investments

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   
Alabama — 1.3%  

County of Jefferson Alabama Sewer, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42

  $ 3,745     $ 4,369,216  

State of Alabama Docks Department, Refunding RB,
6.00%, 10/01/20(a)

    2,165       2,455,002  
   

 

 

 
      6,824,218  
Alaska — 1.3%  

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

   

4.63%, 6/01/23

    875       899,990  

5.00%, 6/01/32

    1,500       1,465,050  

5.00%, 6/01/46

    4,540       4,332,749  
   

 

 

 
      6,697,789  
Arizona — 2.2%  

Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.13%, 7/01/37(b)

    960       1,010,342  

City of Phoenix Arizona IDA, RB:

   

Great Hearts Academies — Veritas Project,
6.40%, 7/01/21(a)

    425       500,960  

Great Hearts Academies — Veritas Projects,
6.30%, 7/01/21(a)

    500       587,585  

Legacy Traditional Schools Project, Series A,
6.50%, 7/01/34(b)

    570       646,893  

Legacy Traditional Schools Projects, Series A,
6.75%, 7/01/44(b)

    1,000       1,119,070  

City of Phoenix Arizona IDA, Refunding RB(b):

   

Basis Schools, Inc. Projects, 5.00%, 7/01/35

    305       318,393  

Basis Schools, Inc. Projects, 5.00%, 7/01/45

    855       881,838  

Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/35

    260       271,417  

Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/46

    290       298,915  

Legacy Traditional School Projects, 5.00%, 7/01/35

    320       326,304  

Legacy Traditional School Projects, 5.00%, 7/01/45

    255       253,875  

Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37

    1,650       2,010,162  

State of Arizona IDA, RB, Academies of Math & Science Project, Series B, 5.13%, 7/01/47(b)

    665       659,441  

State of Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.25%, 7/01/47(b)

    1,765       1,855,121  

University Medical Center Corp., RB, 6.50%, 7/01/19(a)

    500       543,080  
   

 

 

 
      11,283,396  
California — 7.9%  

California Municipal Finance Authority, RB, Urban Discovery Academy Project(b):

   

5.50%, 8/01/34

    315       324,264  

6.00%, 8/01/44

    665       680,834  

6.13%, 8/01/49

    580       592,934  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A:

   

5.00%, 2/01/36

    345       391,102  

5.00%, 2/01/37

    255       288,425  

California School Finance Authority, RB:

   

Alliance for College Ready Public School — 2023 Union LLC Project, Series A, 6.40%, 7/01/48

    1,570       1,789,879  

Value Schools, 6.65%, 7/01/33

    435       497,588  

Value Schools, 6.90%, 7/01/43

    975       1,086,452  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A(b):

   

5.00%, 12/01/46

    725       778,070  

5.25%, 12/01/56

    620       673,921  
Security   Par
(000)
    Value  
California (continued)  

California Statewide Communities Development Authority, Refunding RB:

   

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

  $ 2,175     $ 2,326,032  

California Baptist University, Series A, 5.00%, 11/01/32(b)

    630       700,151  

California Statewide Financing Authority, RB, Asset-Backed, Tobacco Settlement, Series B, 6.00%, 5/01/43

    1,650       1,650,297  

City & County of San Francisco California Redevelopment Agency, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Series D(b)(c):

   

0.00%, 8/01/26

    1,250       814,300  

0.00%, 8/01/43

    1,500       376,635  

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

   

6.50%, 5/01/36

    900       1,053,099  

6.50%, 5/01/42

    2,220       2,597,644  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40

    375       457,384  

County of Los Angeles California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.:

   

5.70%, 6/01/46

    3,600       3,612,492  

5.60%, 6/01/36

    1,285       1,309,351  

County of Riverside California Transportation Commission, RB, Senior Lien, Series A, 5.75%, 6/01/48

    2,885       3,230,017  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior Series A-1:

   

5.13%, 6/01/47

    4,455       4,381,626  

5.75%, 6/01/47

    3,745       3,744,888  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1:

   

4.75%, 6/01/25

    1,230       1,230,750  

5.00%, 6/01/37

    5,580       5,597,633  
   

 

 

 
      40,185,768  
Colorado — 1.3%  

Castle Oaks Metropolitan District No. 3, GO,
6.25%, 12/01/44

    500       531,685  

Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47

    575       589,962  

City & County of Denver Colorado, Refunding RB, United Airlines, Inc. Project, AMT, 5.00%, 10/01/32

    1,620       1,755,027  

Colorado Health Facilities Authority, Refunding RB, Sunny Vista Living Center Project, Series A(b):

   

6.13%, 12/01/45

    335       352,507  

6.25%, 12/01/50

    1,115       1,174,853  

Copperleaf Metropolitan District No. 2, GO, Refunding,
5.75%, 12/01/45

    720       759,161  

Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project, 6.00%, 1/15/34

    1,500       1,649,550  
   

 

 

 
      6,812,745  
Connecticut — 1.0%  

Mohegan Tribal Finance Authority, RB, 7.00%, 2/01/45(b)

    1,400       1,483,328  

Mohegan Tribe of Indians of Connecticut, RB, Series A,
6.75%, 2/01/45(b)

    1,271       1,366,570  

Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 2/01/30(b)

    1,835       1,951,321  
   

 

 

 
      4,801,219  
 

 

 

20    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Delaware — 0.9%  

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

  $ 1,000     $ 1,059,020  

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

    3,180       3,284,876  
   

 

 

 
      4,343,896  
Florida — 8.3%  

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

    1,500       1,515,375  

Capital Trust Agency, Inc., RB, Silver Creek St. Augustine Project, Series A(d):

   

1st Mortgage, 8.25%, 1/01/44

    515       420,863  

1st Mortgage, 8.25%, 1/01/49

    1,105       902,785  

5.75%, 1/01/50

    655       586,395  

County of Collier Florida IDA, Refunding RB, Arlington of Naples Project, Series A, 8.13%, 5/15/44(b)

    2,510       2,789,087  

County of Palm Beach Florida Health Facilities Authority, RB, Acts Retirement Life Community, 5.50%, 11/15/20(a)

    3,500       3,936,205  

County of Palm Beach Florida Health Facilities Authority, Refunding RB, Series A, 7.25%, 6/01/34

    500       603,335  

Florida Development Finance Corp., RB:

   

Renaissance Charter School, Series A, 5.75%, 6/15/29

    690       741,508  

Renaissance Charter School, Series A, 6.00%, 6/15/34

    835       889,684  

Renaissance Charter School, Series A, 6.13%, 6/15/44

    3,180       3,344,120  

Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 8/01/29(b)(e)

    1,550       1,587,339  

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

    1,855       1,878,466  

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

    380       381,376  

Lakewood Ranch Stewardship District Special Assessment Bonds, Village of Lakewood Ranch Sector Projects, 4.00%, 5/01/21

    150       152,033  

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

    1,485       1,752,508  

Lakewood Ranch Stewardship District Special Assessment Bonds, Village of Lakewood Ranch Sector Projects:

   

4.25%, 5/01/26

    150       153,368  

5.13%, 5/01/46

    880       913,449  

Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(a)

    4,550       5,538,851  

Midtown Miami Community Development District, Refunding, Special Assessment Bonds:

   

Series A, 5.00%, 5/01/37

    845       891,450  

Series B, 5.00%, 5/01/37

    495       522,210  

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

    4,052       2,917,743  

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

    295       296,516  

Tolomato Community Development District, Refunding, Special Assessment Bonds:

   

Convertible CAB, Series A2, 6.61%, 5/01/39

    250       249,978  

Convertible CAB, Series A3, 6.61%, 5/01/40(f)

    585       539,042  

Convertible CAB, Series A4, 6.61%, 5/01/40(f)

    305       235,951  

Series 2015-2, 6.61%, 5/01/40(f)

    805       532,821  

Series A1, 6.65%, 5/01/40

    865       865,199  

Tolomato Community Development District:

   

Series 1, 6.61%, 5/01/40(f)

    1,305       1,048,528  

Series 1, 6.65%, 5/01/40(d)(g)

    50       48,805  

Series 3, 6.61%, 5/01/40(d)(g)

    875       9  

Series 3, 6.65%, 5/01/40(d)(g)

    710       7  
Security   Par
(000)
    Value  
Florida (continued)  

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

   

6.75%, 5/01/31

  $ 1,525     $ 1,732,522  

7.00%, 5/01/41

    2,500       2,921,100  

5.50%, 5/01/42

    1,180       1,285,103  
   

 

 

 
      42,173,731  
Georgia — 1.6%  

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

    2,520       2,522,949  

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

    3,365       3,875,437  

County of Gainesville & Hall Georgia Development Authority, Refunding RB, Acts Retirement Life Community, Series A-2(a):

   

6.38%, 11/15/19

    700       773,094  

6.63%, 11/15/19

    880       976,298  
   

 

 

 
      8,147,778  
Guam — 0.3%  

Territory of Guam, GO, Series A:

   

6.00%, 11/15/19

    270       280,200  

7.00%, 11/15/19(a)

    1,115       1,243,727  
   

 

 

 
      1,523,927  
Illinois — 4.1%  

City of Chicago Illinois, GO, Refunding, Series A, 6.00%, 1/01/38

    1,260       1,442,309  

Illinois Finance Authority, Refunding RB:

   

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

    4,000       4,179,440  

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

    2,395       2,524,474  

Presence Health Network, Series C, 4.00%, 2/15/41

    1,500       1,520,850  

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

    890       888,478  

Rogers Park Montessori School Project, Series 2014, 6.00%, 2/01/34

    365       382,155  

Rogers Park Montessori School Project, Series 2014, 6.13%, 2/01/45

    860       886,178  

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

    2,000       2,125,560  

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.50%, 6/15/53

    2,370       2,603,943  

Railsplitter Tobacco Settlement Authority, RB:

   

5.50%, 6/01/23

    180       203,593  

6.00%, 6/01/28

    710       800,042  

State of Illinois, GO:

   

5.25%, 2/01/29

    1,000       1,085,690  

5.00%, 3/01/35

    740       765,249  

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

    1,661       1,664,405  
   

 

 

 
      21,072,366  
Indiana — 2.1%  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

   

6.75%, 1/01/34

    825       976,973  

7.00%, 1/01/44

    2,000       2,380,080  

City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village Project, 6.25%, 1/01/29(b)

    2,450       2,378,975  

County of Allen Indiana, RB, StoryPoint Fort Wayne Project, Series A-1(b):

   

6.63%, 1/15/34

    290       305,155  

6.75%, 1/15/43

    525       550,205  

6.88%, 1/15/52

    860       903,215  
 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Indiana (continued)  

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

   

5.00%, 7/01/44

  $ 470     $ 505,917  

5.00%, 7/01/48

    1,555       1,668,873  

Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 1/15/51(b)

    1,190       1,238,136  
   

 

 

 
      10,907,529  
Iowa — 2.7%  

Iowa Finance Authority, Refunding RB:

   

Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.50%, 12/01/22

    2,090       2,140,139  

Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.25%, 12/01/25

    2,190       2,333,949  

Sunrise Retirement Community Project, 5.50%, 9/01/37

    1,355       1,377,263  

Sunrise Retirement Community Project, 5.75%, 9/01/43

    2,115       2,167,304  

Iowa Tobacco Settlement Authority, Refunding RB:

   

Asset-Backed, CAB, Series B, 5.60%, 6/01/34

    795       800,318  

Series C, 5.38%, 6/01/38

    4,900       4,899,559  
   

 

 

 
      13,718,532  
Kentucky — 0.9%  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing, First Tier, Series A, 5.75%, 7/01/49

    4,000       4,460,720  
   

 

 

 
Louisiana — 3.1%  

Juban Crossing Economic Development District, Refunding RB, General Infrastructure Project, Series C, 7.00%, 9/15/44(b)

    2,460       2,565,903  

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

    5,000       5,000,000  

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

    1,745       1,885,979  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.25%, 5/15/35

    5,570       6,059,547  
   

 

 

 
      15,511,429  
Maine — 0.6%  

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

    2,955       3,207,150  
   

 

 

 
Maryland — 2.6%  

City of Baltimore Maryland, Refunding RB, Convention Center Hotel, 5.00%, 9/01/33

    470       543,861  

County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 7/01/43

    2,840       3,083,246  

Maryland EDC, RB:

   

Purple Line Light Rail Project, AMT, 5.00%, 3/31/51

    2,185       2,423,383  

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

    3,615       3,852,578  

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

    3,085       3,258,408  
   

 

 

 
      13,161,476  
Massachusetts — 1.4%  

Massachusetts Development Finance Agency, RB:

   

Boston Medical Center, Series D, 5.00%, 7/01/44

    1,905       2,090,166  

Foxborough Regional Charter School, Series A, 7.00%, 7/01/42

    1,025       1,101,117  

North Hill Communities Issue, Series A,
6.50%, 11/15/43(b)

    2,020       2,271,126  

Massachusetts Development Finance Agency, Refunding RB:

   

6.75%, 1/01/21(a)

    895       1,045,092  

Series I, 6.75%, 1/01/36

    595       680,424  
   

 

 

 
      7,187,925  
Security   Par
(000)
    Value  
Michigan — 0.9%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39

  $ 2,785     $ 3,087,702  

Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 7/01/44

    415       444,320  

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44

    920       1,000,748  
   

 

 

 
      4,532,770  
Minnesota — 0.1%  

St. Paul Housing & Redevelopment Authority, Refunding RB, Hmong College Prep Academy Project, Series A:

   

5.75%, 9/01/46

    195       202,593  

6.00%, 9/01/51

    290       304,561  
   

 

 

 
      507,154  
Mississippi — 0.1%  

Mississippi Business Finance Corp., RB, Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 2/01/36(b)(e)

    620       634,936  
   

 

 

 
Missouri — 1.3%  

City of St. Louis Missouri IDA, Refunding RB:

   

4.38%, 11/15/35

    685       699,618  

4.75%, 11/15/47

    760       777,936  

Kirkwood Missouri IDA, RB, Aberdeen Heights, Series A, 8.25%, 5/15/20(a)

    2,315       2,714,453  

Lees Summit Missouri IDA, RB, John Knox Obligated Group, 5.25%, 8/15/39

    2,235       2,373,526  
   

 

 

 
      6,565,533  
New Jersey — 5.2%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,065       1,116,397  

5.25%, 11/01/44

    770       803,395  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45(b)

    1,150       1,155,577  

New Jersey EDA, RB:

   

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 1/01/43

    2,155       2,398,644  

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

    2,250       2,594,767  

Provident Group-Kean Properties, Series A, 5.00%, 7/01/32

    165       180,997  

Provident Group-Kean Properties, Series A, 5.00%, 7/01/37

    260       280,184  

Team Academy Charter School Project, 6.00%, 10/01/43

    1,530       1,714,457  

New Jersey EDA, Refunding RB, Greater Brunswick Charter School, Inc. Project, Series A, 6.00%, 8/01/49(b)

    500       512,470  

New Jersey Health Care Facilities Financing Authority, Refunding RB(a):

   

St. Barnabas Health Care System, Series A, 5.63%, 7/01/21

    2,650       3,055,635  

St. Joseph’s Healthcare System, 6.63%, 7/01/18

    2,590       2,685,053  

New Jersey Transportation Trust Fund Authority, RB, Transportation Program, Series AA, 5.25%, 6/15/41

    1,140       1,242,908  

Tobacco Settlement Financing Corp., Refunding RB, Series 1A, 5.00%, 6/01/41

    5,210       4,994,306  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 5.00%, 6/01/29

    3,735       3,743,180  
   

 

 

 
      26,477,970  
 

 

 

22    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
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     $ 3,211,313  
   

 

 

 
New York — 7.9%  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A:

   

6.25%, 6/01/41(b)

    5,300       5,484,175  

5.00%, 6/01/42

    3,155       3,025,645  

5.00%, 6/01/45

    1,185       1,122,231  

Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through:

   

Series A-2B, 5.00%, 6/01/51

    900       928,476  

Series B, 5.00%, 6/01/45

    1,415       1,487,448  

County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 8/01/46

    3,315       2,730,499  

County of Nassau New York Tobacco Settlement Corp., Refunding RB, Asset-Backed, Series A-3, 5.13%, 6/01/46

    275       268,736  

County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44

    1,310       1,409,895  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45

    2,890       2,834,743  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(a)

    1,490       1,573,455  

6.50%, 11/15/18(a)

    125       132,001  

6.50%, 11/15/28

    385       406,976  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

    1,270       1,365,428  

3 World Trade Center Project, Class 1,
5.00%, 11/15/44(b)

    4,705       5,114,194  

3 World Trade Center Project, Class 2,
5.15%, 11/15/34(b)

    455       502,952  

3 World Trade Center Project, Class 2,
5.38%, 11/15/40(b)

    1,080       1,201,748  

3 World Trade Center Project, Class 3,
7.25%, 11/15/44(b)

    1,565       1,884,870  

New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 8/01/31

    1,195       1,275,113  

Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42(b)

    1,335       1,335,895  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/36

    1,340       1,492,304  

State of New York Dormitory Authority, Refunding RB, Orange Regional Medical Center, 5.00%, 12/01/33(b)

    955       1,048,857  

Town of Oyster Bay New York, GO, BAN, Series A, 3.50%, 6/01/18

    3,035       3,060,160  

Town of Oyster Bay New York, GO, Refunding, BAN, Series B, 3.50%, 2/02/18

    505       507,242  
   

 

 

 
      40,193,043  
North Carolina — 1.5%  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Series A:

   

Deerfield Project, 6.13%, 11/01/18(a)

    4,565       4,795,167  

Retirement Facilities Whitestone Project, 7.75%, 3/01/31

    1,000       1,113,460  

Retirement Facilities Whitestone Project, 7.75%, 3/01/41

    1,420       1,566,686  
   

 

 

 
      7,475,313  
Security   Par
(000)
    Value  
Ohio — 3.0%  

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

   

Senior Turbo Term, 5.88%, 6/01/47

  $ 5,570     $ 5,214,690  

5.75%, 6/01/34

    6,745       6,326,742  

6.00%, 6/01/42

    3,040       2,888,030  

County of Hamilton Ohio, Refunding RB, Improvement-Life Enriching Communities, 5.00%, 1/01/46

    875       934,754  
   

 

 

 
      15,364,216  
Oklahoma — 0.2%  

Tulsa Oklahoma Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/37

    750       840,780  
   

 

 

 
Oregon — 0.8%  

County of Multnomah Oregon Hospital Facilities Authority, Refunding RB, Mirabella at South Waterfront, 5.50%, 10/01/49

    1,765       1,898,099  

Polk County Hospital Facility Authority, RB, Dallas Retirement Village Project, Series A:

   

5.13%, 7/01/35

    620       647,298  

5.38%, 7/01/45

    1,435       1,508,888  
   

 

 

 
      4,054,285  
Pennsylvania — 3.5%  

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 5/01/42

    2,140       2,231,763  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/36

    2,000       2,213,960  

County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran:

   

6.38%, 1/01/19(a)

    5,550       5,883,555  

6.38%, 1/01/39

    615       642,072  

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

    1,800       1,832,346  

County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bonds, 7.00%, 7/01/32

    2,030       2,352,486  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

    2,710       2,871,137  
   

 

 

 
      18,027,319  
Puerto Rico — 1.2%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement, Asset-Backed Bonds:

   

5.50%, 5/15/39

    635       623,202  

5.63%, 5/15/43

    2,145       2,101,585  

5.38%, 5/15/33

    960       948,538  

Commonwealth of Puerto Rico, GO, Refunding, Series A(d):

   

Public Improvement, 5.50%, 7/01/39

    665       194,513  

8.00%, 7/01/35

    1,765       525,087  

Commonwealth of Puerto Rico, GO, , 6.00%, 7/01/38(d)

    750       219,375  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 6.00%, 7/01/44

    1,060       677,075  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 7/01/38

    1,150       734,562  
   

 

 

 
      6,023,937  
Rhode Island — 2.3%  

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

    4,190       1,047,500  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 6/01/35

    1,000       1,077,680  

Series A, 5.00%, 6/01/40

    980       1,041,534  

Series B, 4.50%, 6/01/45

    5,055       5,064,504  
 

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Rhode Island (continued)  

Tobacco Settlement Financing Corp., Refunding RB (continued):

   

Series B, 5.00%, 6/01/50

  $ 3,330     $ 3,435,827  
   

 

 

 
      11,667,045  
Texas — 10.1%  

Central Texas Regional Mobility Authority, Refunding RB:

   

CAB, 0.00%, 1/01/28(c)

    1,000       711,290  

CAB, 0.00%, 1/01/29(c)

    2,000       1,360,680  

CAB, 0.00%, 1/01/30(c)

    1,170       758,956  

CAB, 5.00%, 1/01/33(c)

    3,690       2,075,809  

CAB, 0.00%, 1/01/34(c)

    4,000       2,145,880  

Senior Lien, 6.25%, 1/01/21(a)

    2,210       2,550,207  

City of Houston Texas Airport System, Refunding ARB, AMT:

   

Special Facilities, Continental Airlines, Inc., Series A, 6.63%, 7/15/38

    2,890       3,190,329  

United Airlines, Inc. Terminal E Project, 5.00%, 7/01/29

    910       997,260  

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

   

5.50%, 8/15/21

    955       1,099,253  

5.75%, 8/15/21

    720       835,373  

County of Bexar Texas Health Facilities Development Corp., RB, Army Retirement Residence Project,
6.20%, 7/01/20(a)

    5,040       5,687,287  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/23(a)

    475       600,552  

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

    2,090       2,272,729  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Senior Living Center Project, Series A, 8.25%, 11/15/44

    4,200       4,469,388  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project, 5.00%, 10/01/49

    865       924,313  

County of Travis Texas Health Facilities Development Corp., Refunding RB, 7.13%, 1/01/46

    3,080       3,340,260  

Mesquite Health Facility Development Corp., Refunding RB, 5.13%, 2/15/42

    810       839,638  

Mission Economic Development Corp., RB, Senior Lien, Natgasoline Project, Series B, AMT, 5.75%, 10/01/31(b)

    1,325       1,391,899  

New Hope Cultural Education Facilities Corp., RB, Stephenville LLC Tarleton State University Project:

   

5.88%, 4/01/36

    1,210       1,364,553  

6.00%, 4/01/45

    1,845       2,040,921  

Newark Higher Education Finance Corp., RB, Series A(b):

   

5.50%, 8/15/35

    290       297,917  

5.75%, 8/15/45

    580       595,677  

North Texas Education Finance Corp., ERB, Uplift Education, Series A, 5.25%, 12/01/47

    1,600       1,735,840  

Red River Health Facilities Development Corp., First MRB, Project:

   

Eden Home, Inc., 7.25%, 12/15/42(d)

    2,895       1,679,100  

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

    900       928,674  

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

   

LBJ Infrastructure Group LLC, 7.00%, 6/30/40

    3,775       4,260,578  

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

    3,000       3,327,000  
   

 

 

 
      51,481,363  
Security   Par
(000)
    Value  
Utah — 0.6%  

State of Utah Charter School Finance Authority, Refunding RB, 6.75%, 10/15/43

  $ 2,950     $ 2,995,165  
   

 

 

 
Vermont — 0.2%  

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

    770       816,246  
   

 

 

 
Virginia — 2.4%  

Lower Magnolia Green Community Development Authority, Special Assessment Bonds(b):

   

5.00%, 3/01/35

    495       505,934  

5.00%, 3/01/45

    505       511,459  

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

   

6.63%, 3/01/26

    1,485       1,618,858  

6.88%, 3/01/36

    1,300       1,420,029  

Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 6/01/47

    2,280       2,191,468  

Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 7/01/45(b)

    535       558,133  

Virginia College Building Authority, Refunding RB, Marymount University Project, Series A, 5.00%, 7/01/45(b)

    375       391,215  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37

    4,440       5,019,642  
   

 

 

 
      12,216,738  
Washington — 0.8%  

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

    1,455       1,512,196  

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

    1,495       1,533,062  

Washington State Housing Finance Commission, Refunding RB(b):

   

5.75%, 1/01/35

    315       319,026  

6.00%, 1/01/45

    850       862,750  
   

 

 

 
      4,227,034  
Wisconsin — 1.1%  

Public Finance Authority, RB:

   

Delray Beach Radiation Therapy, 6.85%, 11/01/46(b)

    900       924,282  

Delray Beach Radiation Therapy, 7.00%, 11/01/46(b)

    570       591,147  

Series A, 5.00%, 12/01/45

    1,505       1,579,964  

Series A, 5.15%, 12/01/50

    1,170       1,226,804  

Wisconsin Health & Educational Facilities Authority, Refunding RB, St. Johns Communities, Inc., Series A(a):

   

7.25%, 9/15/19

    425       472,298  

7.63%, 9/15/19

    855       956,061  
   

 

 

 
      5,750,556  
   

 

 

 

Total Municipal Bonds — 87.4%

 

    445,084,310  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(h)

 

Colorado — 2.4%  

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

    11,468       12,150,656  
   

 

 

 
Florida — 4.9%  

City of New York New York Housing Development Corp., RB, M/F Housing, Series D-1, Class B, 4.25%, 11/01/45

    8,996       9,257,760  

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A, AMT(a):

   

5.25%, 10/01/18

    11,655       12,071,899  
 

 

 

24    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A, AMT(a) (continued):

   

5.25%, 10/01/18

  $ 3,345     $ 3,464,651  
   

 

 

 
      24,794,310  
Illinois — 2.7%  

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

    7,180       8,110,097  

State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 1/01/40

    5,056       5,743,843  
   

 

 

 
      13,853,940  
New York — 11.6%  

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution:

   

Fiscal 2013, Series CC, 5.00%, 6/15/47

    14,181       16,138,758  

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

    8,610       9,648,337  

Hudson Yards Infrastructure Corp., RB, Series A,
5.75%, 2/15/47(i)

    4,520       5,135,746  

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

    18,105       20,409,561  

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

    6,600       7,590,096  
   

 

 

 
      58,922,498  
Pennsylvania — 0.6%  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    2,505       2,944,502  
   

 

 

 
Washington — 1.7%  

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

    7,966       8,838,204  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 23.9%

 

    121,504,110  
   

 

 

 

Total Long-Term Investments — 111.3%
(Cost — $530,889,788)

 

    566,588,420  
   

 

 

 
Security       
Shares
    Value  

Short-Term Securities

   

BlackRock Liquidity Funds, MuniCash, Institutional Class,
0.74%(j)(k)

    3,874,985     $ 3,876,148  
   

 

 

 

Total Short-Term Securities — 0.8%
(Cost — $3,876,148)

 

    3,876,148  
   

 

 

 

Total Investments — 112.1%
(Cost — $534,765,936)

 

    570,464,568  

Other Assets Less Liabilities — 1.3%

 

    6,475,614  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (13.4)%

 

    (67,961,320
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 508,978,862  
   

 

 

 

 

(a)  U.S. 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)  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.
(c)  Zero-coupon bond.
(d)  Issuer filed for bankruptcy and/or is in default.
(e)  Variable rate security. Rate shown is the rate in effect as of period end.
(f)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.
(g)  Non-income producing security.
(h)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(i)  All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between February 15, 2019 to November 15, 2019 is $11,849,809. See Note 4 of the Notes to Financial Statements for details.
(j)  Annualized 7-day yield as of period end.
 
(k)  During the six months ended October 31, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated    Shares
Held at
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     1,057,065        2,817,920        3,874,985      $ 3,876,148      $ 15,053      $ 515      $ (96
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes capital gain distribution, if applicable.  

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     (43        12/19/17        $ 5,372        $ 78,743  

Long U.S. Treasury Bond

     (55        12/19/17          8,386          161,430  

Ultra Long U.S. Treasury Bond

     (20        12/19/17          3,296          70,048  

5-Year U.S. Treasury Note

     (61        12/29/17          7,148          67,216  
                 

 

 

 
     $ 377,437  
                 

 

 

 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 377,437      $      $ 377,437  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.  

For the six months ended October 31, 2017, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ (570,618    $      $ (570,618
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                            

Futures contracts

   $      $      $      $      $ 616,931      $      $ 616,931  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 21,801,574  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments(a)

   $        $ 566,588,420        $        $ 566,588,420  

Short-Term Securities

     3,876,148                        3,876,148  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,876,148        $ 566,588,420        $        $ 570,464,568  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 377,437        $        $        $ 377,437  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each state or political subdivision.  
  (b)  Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.  

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $67,756,523 are categorized as Level 2 within the disclosure hierarchy.

During the six months ended October 31, 2017, there were no transfers between levels.

See notes to financial statements.

 

 

26    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

 

Alabama — 0.6%  

County of Tuscaloosa Board of Education, RB, Special Tax School Warrants, 5.00%, 2/01/43

  $ 885     $ 1,013,121  

Homewood Educational Building Authority, Refunding RB, Educational Facilities, Samford University, Series A, 5.00%, 12/01/47

    1,010       1,129,766  
   

 

 

 
      2,142,887  
Alaska — 0.7%  

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

    990       1,093,029  

Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC):

   

6.00%, 9/01/19

    765       831,853  

6.00%, 9/01/19

    435       473,015  
   

 

 

 
      2,397,897  
Arizona — 1.9%  

County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group, Series A:

   

5.00%, 1/01/38

    280       324,383  

4.00%, 1/01/41

    3,100       3,212,685  

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

   

5.00%, 10/01/27

    2,700       2,886,597  

5.00%, 10/01/29

    400       427,488  
   

 

 

 
      6,851,153  
California — 14.2%  

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

    5,000       6,018,850  

California Health Facilities Financing Authority, RB:

   

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

    550       590,194  

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

    1,200       1,349,748  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/37

    1,090       1,236,125  

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

    1,480       1,665,903  

City & County of San Francisco California Airports Commission, Refunding ARB, Series A, AMT, 5.00%, 5/01/42

    185       212,741  

City of Redding California Electric System Revenue, COP, Refunding Series A, (AGM):

   

5.00%, 6/01/18(a)

    620       634,427  

5.00%, 6/01/30

    600       612,720  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT:

   

Series A, 5.00%, 3/01/36

    410       475,563  

Series A, 5.00%, 3/01/37

    455       526,558  

Series A-1, 5.75%, 3/01/34

    850       959,811  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/21(a)

    2,175       2,514,039  

County of San Mateo California Community College District, GO, CAB, Election of 2001, Series C (NPFGC),
0.00%, 9/01/30(b)

    12,740       8,880,035  

Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 6.25%, 8/01/43(c)

    2,500       2,003,725  

Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2008, Series B, 0.00%, 8/01/36(b)

    3,750       1,921,012  
Security   Par
(000)
    Value  
California (continued)  

Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C, 0.00%, 8/01/38(b)

  $ 5,000     $ 2,355,950  

San Diego California Community College District, GO, CAB, Election of 2006(b):

   

0.00%, 8/01/31

    2,145       1,216,108  

0.00%, 8/01/32

    2,680       1,422,866  

San Diego California Unified School District, GO, CAB, Election of 2008(b):

   

Series C, 0.00%, 7/01/38

    1,600       774,832  

Series G, 0.00%, 7/01/34

    650       307,879  

Series G, 0.00%, 7/01/35

    690       306,857  

Series G, 0.00%, 7/01/36

    1,035       432,185  

Series G, 0.00%, 7/01/37

    690       270,632  

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

   

0.00%, 7/01/30

    5,000       3,433,550  

0.00%, 7/01/31

    1,280       845,274  

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

   

5.00%, 8/01/34

    700       783,230  

5.00%, 8/01/38

    600       670,644  

Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B, 0.00%, 8/01/36(b)

    5,500       2,669,920  

West Basin Municipal Water District California, COP, Refunding, Series B (AGC), 5.00%, 8/01/18(a)

    5,035       5,182,928  
   

 

 

 
      50,274,306  
Colorado — 0.6%  

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

    2,000       2,175,760  
   

 

 

 
District of Columbia — 1.5%  

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

    5,360       5,458,892  
   

 

 

 
Florida — 12.7%  

City of Gainesville Florida Utilities System Revenue, RB, Series A, 5.00%, 10/01/37(d)

    355       419,418  

County of Brevard Florida Health Facilities Authority, Refunding RB, Health First, Inc. Project, 5.00%, 4/01/39

    1,600       1,759,264  

County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/18(a)

    850       882,139  

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

    1,450       1,576,121  

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

    4,050       4,185,837  

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

   

5.63%, 10/01/26

    960       1,086,624  

5.38%, 10/01/32

    3,160       3,509,085  

County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 5.75%,
7/01/18(a)

    1,400       1,443,778  

County of Miami-Dade Florida, RB, Seaport:

   

Department, Series A, 6.00%, 10/01/38

    2,025       2,416,027  

Department, Series B, AMT, 6.25%, 10/01/38

    415       492,771  

Department, Series B, AMT, 6.00%, 10/01/42

    660       765,382  

Series B, AMT, 6.00%, 10/01/30

    640       754,707  

County of Miami-Dade Florida Aviation, Refunding ARB, AMT, 5.00%, 10/01/34

    190       215,211  

County of Miami-Dade Florida Educational Facilities Authority, RB, University of Miami, Series A, 5.00%, 4/01/40

    2,995       3,371,382  

County of Miami-Dade Florida Health Facilities Authority, Refunding RB, Nicklaus Children’s Hospital Project, 5.00%, 8/01/42

    605       685,889  
 

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

County of Miami-Dade Florida School Board Foundation, Inc., COP, Series B (AGC), 5.00%, 5/01/18(a)

  $ 10,000     $ 10,193,400  

County of Orange Florida Health Facilities Authority, Refunding RB, Presbyterian Retirement Communities Project:

   

5.00%, 8/01/41

    560       617,742  

5.00%, 8/01/47

    1,620       1,779,878  

County of Palm Beach Florida Solid Waste Authority, Refunding RB, Series B:

   

5.00%, 10/01/21(a)

    30       34,087  

5.00%, 10/01/31

    1,970       2,210,360  

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

    275       290,048  

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

   

5.13%, 6/01/27

    2,000       2,244,360  

5.38%, 10/01/29

    1,050       1,196,779  

Greater Orlando Aviation Authority, ARB, Priority Sub-Series A, AMT, 4.00%, 10/01/47

    2,880       2,958,307  
   

 

 

 
      45,088,596  
Georgia — 3.1%  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

    500       585,995  

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

    7,475       9,875,671  

Private Colleges & Universities Authority, RB, Savannah College of Art & Design:

   

5.00%, 4/01/33

    140       156,197  

5.00%, 4/01/44

    380       413,618  
   

 

 

 
      11,031,481  
Illinois — 16.3%  

City of Chicago Illinois O’Hare International Airport, ARB, Senior Lien, Series D, 5.25%, 1/01/42

    2,900       3,404,049  

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

   

3rd Lien, Series A, 5.75%, 1/01/21(a)

    4,290       4,876,915  

3rd Lien, Series A, 5.75%, 1/01/39

    820       922,123  

Senior Lien, Series D, AMT, 5.00%, 1/01/42

    230       258,757  

City of Chicago Illinois Transit Authority, RB:

   

5.25%, 12/01/49

    900       995,616  

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

    595       642,005  

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

    45       47,795  

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

   

5.75%, 8/15/34

    650       732,648  

6.00%, 8/15/41

    1,000       1,131,140  

Illinois Finance Authority, Refunding RB, Silver Cross Hospital & Medical Centers, Series C:

   

4.13%, 8/15/37

    740       753,039  

5.00%, 8/15/44

    350       374,647  

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

    10,490       10,513,078  

Illinois State Toll Highway Authority, RB, Series B, 5.00%, 1/01/37

    2,785       3,179,077  

Kane McHenry Cook & De Kalb Counties Unit School District No. 300, GO, Refunding, 5.25%, 1/01/33

    9,145       10,389,177  

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

   

0.00%, 12/15/26

    5,000       3,643,750  

0.00%, 12/15/33

    9,950       5,188,925  
Security   Par
(000)
    Value  
Illinois (continued)  

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 6/15/44(b)

  $ 3,450     $ 1,114,591  

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

    675       760,604  

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

    3,565       3,880,502  

State of Illinois, GO:

   

5.25%, 2/01/33

    830       888,689  

5.50%, 7/01/33

    820       889,954  

5.25%, 2/01/34

    830       886,324  

5.50%, 7/01/38

    445       476,644  

State of Illinois Toll Highway Authority, Refunding RB, Series B, 5.50%, 1/01/18(a)

    1,875       1,888,744  
   

 

 

 
      57,838,793  
Indiana — 1.2%  

Indiana Finance Authority, RB, Series A:

   

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

    1,100       1,245,453  

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

    515       554,356  

Indiana Health & Educational Facilities Financing Authority, Refunding RB, Ascension Senior Credit Group, 5.00%, 11/15/46

    700       790,104  

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

   

5.25%, 1/01/19(a)

    115       120,557  

5.25%, 1/01/29

    485       508,668  

State of Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 7/01/40

    890       961,334  
   

 

 

 
      4,180,472  
Iowa — 2.9%  

Iowa Finance Authority, RB, Iowa Health Care Facilities, Series A (AGC), 5.63%, 8/15/19(a)

    5,725       6,176,531  
   

 

 

 

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

   

5.60%, 12/01/26

    1,855       1,989,728  

5.70%, 12/01/27

    835       890,494  

5.80%, 12/01/29

    570       606,486  

5.85%, 12/01/30

    595       633,443  
   

 

 

 
      10,296,682  
Louisiana — 1.5%  

City of New Orleans Louisiana Aviation Board, ARB, Series B, AMT, 5.00%, 1/01/40

    2,795       3,118,493  

City of Shreveport Louisiana Water & Sewer Revenue, RB, Series A (AGM), 5.00%, 12/01/41

    855       986,687  

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

    1,250       1,317,125  
   

 

 

 
      5,422,305  
Maine — 0.2%  

Maine State Housing Authority, RB, Series D-1, 3.65%, 11/15/42

    645       634,828  
   

 

 

 
Massachusetts — 2.6%  

Commonwealth of Massachusetts, GOL, Consolidated Loan, Series D, 4.00%, 2/01/47

    10       10,392  

Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A, 5.00%, 1/01/47

    2,090       2,337,351  

Massachusetts HFA, Refunding RB, AMT:

   

Series A, 4.45%, 12/01/42

    795       829,583  

Series C, 5.35%, 12/01/42

    640       678,797  

Massachusetts Port Authority, Refunding ARB, Series B, AMT, 4.00%, 7/01/46

    3,620       3,732,256  
 

 

 

28    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts (continued)  

Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series A, 5.00%, 5/15/43

  $ 1,280     $ 1,455,104  
   

 

 

 
      9,043,483  
Michigan — 2.7%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, 2nd Lien, Series E (BHAC), 5.75%, 7/01/18(a)

    2,500       2,577,325  

City of Detroit Michigan Water Supply System Revenue, RB, 2nd Lien, Series B (AGM), 6.25%, 7/01/19(a)

    400       433,516  

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

    1,700       1,923,312  

Michigan Finance Authority, Refunding RB:

   

Henry Ford Health System, 3.25%, 11/15/42

    480       439,037  

Trinity Health Credit Group, 5.00%, 12/01/21(a)

    20       22,812  

Michigan State Hospital Finance Authority, Refunding RB, Ascension Senior Credit Group, 4.00%, 11/15/47

    600       616,032  

Royal Oak Hospital Finance Authority, Refunding RB, Beaumont Health Credit Group, Series D, 5.00%, 9/01/39

    1,040       1,147,931  

State of Michigan Building Authority, Refunding RB, Facilities Program:

   

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

    145       164,929  

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

    700       794,773  

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

    900       1,019,421  

Western Michigan University, Refunding RB, General, University and College Improvements (AGM), 5.00%, 11/15/39

    380       430,186  
   

 

 

 
      9,569,274  
Minnesota — 0.7%  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

   

6.50%, 11/15/18(a)

    385       406,441  

6.50%, 11/15/38

    2,115       2,222,632  
   

 

 

 
      2,629,073  
Nebraska — 1.8%  

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

   

5.00%, 9/01/32

    5,010       5,523,625  

5.25%, 9/01/37

    750       828,525  
   

 

 

 
      6,352,150  
Nevada — 1.6%  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/19(a)

    850       907,894  

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A:

   

5.25%, 7/01/42

    500       538,540  

(AGM), 5.25%, 7/01/39

    3,800       4,102,214  
   

 

 

 
      5,548,648  
New Jersey — 8.6%  

New Jersey EDA, RB:

   

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 1/01/43

    895       996,189  

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.13%, 1/01/34

    685       759,014  

School Facilities Construction (AGC), 6.00%, 12/15/18(a)

    1,975       2,083,941  

School Facilities Construction (AGC), 6.00%, 12/15/18(a)

    25       26,379  

Series WW, 5.25%, 6/15/33

    155       171,469  

Series WW, 5.00%, 6/15/34

    205       222,122  

Series WW, 5.00%, 6/15/36

    925       994,634  

Series WW, 5.25%, 6/15/40

    265       287,464  

New Jersey EDA, Refunding RB:

   

Series B, 5.50%, 6/15/30

    5,360       6,258,926  

Sub Series A, 4.00%, 7/01/32

    1,270       1,278,052  
Security   Par
(000)
    Value  
New Jersey (continued)  

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

   

5.50%, 12/01/26

  $ 375     $ 409,991  

5.75%, 12/01/27

    2,415       2,653,602  

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

    970       1,024,960  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.25%, 6/15/33

    1,490       1,619,541  

Transportation Program, Series AA, 5.00%, 6/15/38

    1,885       2,017,346  

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

    3,150       3,387,825  

Transportation System, Series AA, 5.50%, 6/15/39

    1,150       1,249,854  

Transportation System, Series B, 5.50%, 6/15/31

    1,000       1,095,900  

Transportation System, Series B, 5.00%, 6/15/42

    520       541,070  

Transportation System, Series D, 5.00%, 6/15/32

    735       793,337  

New Jersey Turnpike Authority, Refunding RB, Series B, 4.00%, 1/01/37

    2,310       2,471,261  
   

 

 

 
      30,342,877  
New York — 8.0%  

City of New York, GO, Series B-1, 4.00%, 10/01/41

    2,710       2,873,928  

City of New York New York Municipal Water Finance Authority, Refunding RB, Second General Resolution, Fiscal 2012, Series BB, 5.25%, 6/15/44

    1,425       1,618,116  

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-4, 5.50%, 1/15/33

    1,600       1,683,664  

City of New York New York Transitional Finance Authority, RB, Fiscal 2009, Series S-4, 5.50%, 1/15/34

    2,750       2,893,797  

City of New York New York Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/32

    1,480       1,713,041  

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:

   

5.75%, 2/15/21(a)

    420       480,656  

5.75%, 2/15/47

    280       318,979  

Hudson Yards Infrastructure Corp., Refunding RB, 2nd Indenture, Series A, 5.00%, 2/15/39

    625       730,044  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(a)

    2,985       3,152,190  

6.50%, 11/15/18(a)

    245       258,722  

6.50%, 11/15/28

    770       813,952  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Sub-Series B-1, 4.00%, 8/01/42

    2,600       2,763,930  

New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 1/01/50

    2,715       3,009,550  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 206th Series, AMT, 5.00%, 11/15/37

    600       699,924  

State of New York Dormitory Authority, RB:

   

Sales Tax, Group C, Series A, 4.00%, 3/15/47

    1,530       1,614,395  

Series B, 5.75%, 3/15/19(a)

    1,200       1,275,792  

State of New York HFA, RB, Affordable Housing, M/F Housing, Series B, AMT, 5.30%, 11/01/37

    2,500       2,503,075  
   

 

 

 
      28,403,755  
Ohio — 1.6%  

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

    530       631,108  

State of Ohio Turnpike Commission, RB, CAB, Junior Lien, Infrastructure Projects, Series A-2, 0.00%, 2/15/37(b)

    10,000       5,082,600  
   

 

 

 
      5,713,708  
Oregon — 1.3%  

Counties of Washington & Multnomah Oregon School District No. 48J Beaverton, GO, Convertible CAB, Series D, 5.00%, 6/15/36(c)

    835       946,698  
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Oregon (continued)  

County of Clackamas Oregon Community College District, GO, Convertible Deferred Interest Bonds, Series A, 5.00%, 6/15/40(c)

  $ 440     $ 450,274  

County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 6/15/38(b)

    995       433,561  

State of Oregon Housing & Community Services Department, RB, Series D, 3.45%, 1/01/38

    2,840       2,828,470  
   

 

 

 
      4,659,003  
Pennsylvania — 7.4%  

Commonwealth Financing Authority, RB, Series B, 5.00%, 6/01/42

    1,600       1,746,704  

County of Berks Industrial Development Authority, Refunding RB, Tower Health Project, 4.00%, 11/01/47

    1,855       1,862,606  

Pennsylvania Economic Development Financing Authority, RB:

   

Pennsylvania Bridge Finco LP, 5.00%, 12/31/38

    1,305       1,461,496  

Pennsylvania Bridge Finco LP, AMT, 5.00%, 12/31/34

    7,290       8,251,915  

Pennsylvania Rapid Bridge Replacement Project, AMT, 5.00%, 6/30/42

    1,035       1,147,639  

Pennsylvania Higher Educational Facilities Authority, Refunding RB, Thomas Jefferson University, Series A, 5.25%, 9/01/50

    2,330       2,634,927  

Pennsylvania Turnpike Commission, RB:

   

Series A, 5.00%, 12/01/38

    620       707,897  

Series A-1, 5.00%, 12/01/41

    2,385       2,701,012  

Series B, 5.00%, 12/01/40

    935       1,065,404  

Series C, 5.50%, 12/01/33

    555       651,792  

Sub-Series B-1, 5.00%, 6/01/42

    1,750       1,974,210  

Subordinate, Special Motor License Fund,
6.00%, 12/01/20(a)

    575       657,093  

Pennsylvania Turnpike Commission, Refunding RB, Series A-1, 5.00%, 12/01/40

    765       868,589  

Philadelphia School District, GO, Series E(a):

   

6.00%, 9/01/18

    5       5,201  

6.00%, 9/01/18

    395       411,017  
   

 

 

 
      26,147,502  
Rhode Island — 1.2%  

Rhode Island Commerce Corp., RB, Airport Corp., Series D, 5.00%, 7/01/41

    355       398,008  

Tobacco Settlement Financing Corp., Refunding RB, Series B:

   

4.50%, 6/01/45

    1,055       1,056,983  

5.00%, 6/01/50

    2,630       2,713,582  
   

 

 

 
      4,168,573  
South Carolina — 4.9%  

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

    115       132,662  

South Carolina Public Service Authority, Refunding RB, Series A(a):

   

5.50%, 1/01/19

    80       84,097  

5.50%, 1/01/19

    920       967,113  

South Carolina Transportation Infrastructure Bank, RB, Series A, 5.25%, 10/01/19(a)

    3,000       3,228,570  

State of South Carolina Ports Authority, RB, AMT, 5.25%, 7/01/50

    2,330       2,601,911  

State of South Carolina Public Service Authority, RB, Santee Cooper:

   

Series A, 5.50%, 12/01/54

    6,225       7,025,037  

Series E, 5.50%, 12/01/53

    745       837,231  

State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series B, 5.00%, 12/01/38

    2,080       2,292,576  
   

 

 

 
      17,169,197  
Security   Par
(000)
    Value  
South Dakota — 0.9%  

South Dakota Health & Educational Facilities Authority, Refunding RB, Avera Health Issue, 4.00%, 7/01/42

  $ 3,000     $ 3,048,030  
   

 

 

 
Tennessee — 2.1%  

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, Refunding RB, Vanderbilt University, Series B, 5.50%, 10/01/19(a)

    5,000       5,409,500  

Tennessee Housing Development Agency, RB:

   

3.60%, 7/01/42

    550       549,626  

3.65%, 7/01/47

    1,470       1,466,781  
   

 

 

 
      7,425,907  
Texas — 14.4%  

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC):

   

5.38%, 5/15/19(a)

    1,280       1,361,498  

6.00%, 5/15/19(a)

    1,990       2,135,568  

6.00%, 11/15/35

    110       118,450  

5.38%, 11/15/38

    70       74,115  

City of San Antonio Texas Electric & Gas Revenue, RB, Junior Lien, 5.00%, 2/01/38

    575       652,522  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/36(b)

    2,130       982,399  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Cook Children’s Medical Center, 5.25%, 12/01/39

    750       847,342  

Dallas-Fort Worth International Airport, ARB, Joint Improvement, AMT:

   

Series D, 5.00%, 11/01/38

    1,975       2,189,485  

Series D, 5.00%, 11/01/42

    1,500       1,656,240  

Series H, 5.00%, 11/01/32

    3,000       3,347,760  

Dallas-Fort Worth International Airport, Refunding ARB, Series F, 5.25%, 11/01/33

    975       1,145,410  

Grand Parkway Transportation Corp., RB, Convertible CAB, Series B, 5.80%, 10/01/46(c)

    2,095       1,953,399  

Leander ISD, GO, Refunding, CAB, Series D (PSF-GTD), 0.00%, 8/15/38(b)

    3,420       1,411,605  

North Texas Tollway Authority, Refunding RB:

   

1st Tier System (NPFGC), 5.75%, 1/01/18(a)

    600       604,644  

1st Tier System (NPFGC), 5.75%, 1/01/40

    195       196,509  

1st Tier System, Series A, 6.00%, 1/01/19(a)

    2,270       2,396,598  

1st Tier System, Series A, 6.00%, 1/01/28

    525       554,594  

1st Tier System, Series K-2 (AGC), 6.00%, 1/01/19(a)

    4,015       4,241,326  

1st Tier System, Series S (NPFGC), 5.75%, 1/01/18(a)

    805       811,231  

1st Tier, Series K-1 (AGC), 5.75%, 1/01/19(a)

    3,800       4,003,262  

1st Tier-Series A, 5.00%, 1/01/43(d)

    2,490       2,876,174  

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

   

0.00%, 9/15/35

    4,990       2,242,905  

0.00%, 9/15/36

    11,525       4,876,227  

0.00%, 9/15/37

    8,245       3,279,284  

Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements:

   

5.00%, 12/15/31

    1,190       1,330,884  

5.00%, 12/15/32

    705       785,955  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, AMT, Blueridge Transportation Group, 5.00%, 12/31/45

    1,275       1,399,287  

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 8/15/41

    3,080       3,416,398  
   

 

 

 
      50,891,071  
 

 

 

30    2017 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Utah — 1.9%  

Salt Lake City Corp. Airport Revenue, RB, Series A, AMT, 5.00%, 7/01/42

  $ 1,240     $ 1,427,562  

Utah Transit Authority, RB, Series A (AGM),
5.00%, 6/15/18(a)

    5,000       5,121,550  
   

 

 

 
      6,549,112  
Virginia — 0.1%  

County of Fairfax Virginia IDA, Refunding RB, Health Care-Inova Health:

   

5.50%, 5/15/19(a)

    125       133,196  

5.50%, 5/15/35

    225       238,935  
   

 

 

 
      372,131  
Washington — 1.4%  

Port of Seattle Washington, ARB, Intermediate Lien, Series C, AMT, 5.00%, 5/01/42

    715       824,116  

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40

    1,015       1,130,822  

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

   

5.00%, 10/01/39

    525       555,980  

5.25%, 10/01/39

    625       666,756  

Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.00%, 8/15/41(d)

    1,835       1,879,958  
   

 

 

 
      5,057,632  
Wisconsin — 2.0%  

Public Finance Authority, RB, KU Campus Development Corp., Central District Development Project, 5.00%, 3/01/46

    645       724,271  

State of Wisconsin Health & Educational Facilities Authority, RB:

   

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

    1,375       1,471,841  

Marshfield Clinic Health System, Inc. Series C, 4.00%, 2/15/42

    2,810       2,827,225  

State of Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc. Obligated Group, 4.00%, 4/01/39

    1,900       1,955,651  
   

 

 

 
      6,978,988  
   

 

 

 

Total Municipal Bonds — 122.6%

 

    433,864,166  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(e)

 

Arizona — 0.4%  

Phoenix Civic Improvement Corp., Refunding RB, Junior Lien, Series A, 5.00%, 7/01/19(a)

    1,200       1,275,822  
   

 

 

 
California — 2.3%  

Bay Area California Toll Authority, Refunding RB, San Francisco Bay Area, Series D-1, 4.00%, 4/01/47(f)

    3,827       4,031,129  

County of San Diego Water Authority Financing Corp., COP, Refunding, Series A (AGM)(a):

   

5.00%, 5/01/18

    466       475,391  

5.00%, 5/01/18

    2,344       2,390,135  

San Diego Community College District, GO, Election of 2002, 5.25%, 8/01/19(a)

    404       432,670  

University of California, RB, Series O, 5.75%, 5/15/19(a)

    840       899,068  
   

 

 

 
      8,228,393  
Colorado — 2.3%  

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

   

5.50%, 7/01/34(f)

    900       946,044  

5.00%, 2/01/41

    7,000       7,299,600  
   

 

 

 
      8,245,644  
Security   Par
(000)
    Value  
Connecticut — 0.4%  

State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45

  $ 1,381     $ 1,560,319  
   

 

 

 
District of Columbia — 1.7%  

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

    1,004       1,090,314  

District of Columbia Water & Sewer Authority, Refunding RB, Series A, 6.00%, 10/01/18(a)(f)

    1,779       1,856,871  

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

    2,530       2,870,740  
   

 

 

 
      5,817,925  
Florida — 3.9%  

County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42

    4,480       5,054,829  

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

    4,620       5,036,926  

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 02/01/18(a)

    3,544       3,806,492  
   

 

 

 
      13,898,247  
Illinois — 3.2%  

State of Illinois, RB, Build Illinois, Series B,
5.25%, 6/15/19(a)(f)

    4,399       4,684,742  

State of Illinois Toll Highway Authority, RB:

   

Series A, 5.00%, 1/01/38

    2,138       2,381,389  

Series A, 5.00%, 1/01/40

    2,730       3,102,016  

Series B, 5.00%, 1/01/40

    1,050       1,189,439  
   

 

 

 
      11,357,586  
Kansas — 1.6%  

County of Wyandotte Unified School District No. 500 Kansas City, GO, Improvement, Series A, 5.50%, 9/01/47

    4,723       5,723,768  
   

 

 

 
Maryland — 0.9%  

City of Baltimore Maryland, RB, Water Projects, Series A, 5.00%, 7/01/41

    2,808       3,245,956  
   

 

 

 
Massachusetts — 0.5%  

Commonwealth of Massachusetts, GO, Series A, 5.00%, 3/01/46

    1,461       1,671,956  
   

 

 

 
Michigan — 3.2%  

State of Michigan Finance Authority, RB, Beumont Health Credit Group, Series A, 5.00%, 11/01/44

    1,970       2,195,370  

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

    7,530       8,292,940  

State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45

    870       989,768  
   

 

 

 
      11,478,078  
Nevada — 4.2%  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/19(a)(f)

    3,778       4,029,956  

County of Clark Nevada Water Reclamation District, GO, Series B(a):

   

5.50%, 7/01/19

    4,499       4,817,449  

5.75%, 7/01/19

    1,829       1,966,455  

Las Vegas Valley Water District, GO, Refunding Water Improvement, Series A, 5.00%, 6/01/46

    3,460       4,009,396  
   

 

 

 
      14,823,256  
New Jersey — 0.8%  

County of Hudson New Jersey Improvement Authority, RB, Hudson County Vocational-Techical Schools Project, 5.25%, 5/01/51

    800       922,458  

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

    1,840       1,956,432  
   

 

 

 
      2,878,890  
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (continued)

October 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York — 6.5%  

City of New York New York Water & Sewer System, RB, Fiscal 2009, Series A:

   

5.75%, 6/15/18(a)

  $ 290     $ 298,094  

5.75%, 6/15/40

    969       996,840  

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47

    5,680       6,464,608  

Metropolitan Transportation Authority, RB, Sub-Series D-1, 5.25%, 11/15/44

    3,470       4,059,883  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    1,500       1,753,613  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Future Tax, Sub-Series A-3, 5.00%, 8/01/40(f)

    3,059       3,586,106  

New York City Water & Sewer System, RB, 2nd General Resolution, Series DD, 5.00%, 6/15/35

    1,665       1,939,053  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 198th Series, 5.25%, 11/15/56

    2,241       2,631,132  

Triborough Bridge & Tunnel Authority, GRB, Series A-2, 5.25%, 11/15/34(f)

    1,300       1,356,647  
   

 

 

 
      23,085,976  
Ohio — 1.1%  

Northeast Ohio Regional Sewer District, Refunding RB, 4.00%, 11/15/43

    2,912       3,107,685  

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

    580       609,006  
   

 

 

 
      3,716,691  
Pennsylvania — 0.3%  

County of Westmoreland Municipal Authority, Refunding RB (BAM), 5.00%, 8/15/42

    900       1,026,803  
   

 

 

 
South Carolina — 1.5%  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Texas Health Resources System , Series A, 5.00%, 2/15/41

    3,440       3,942,025  

South Carolina Public Service Authority, Refunding RB, Series A(a)(f):

   

5.50%, 1/01/19

    102       106,718  

5.50%, 1/01/19

    1,175       1,233,956  
   

 

 

 
      5,282,699  
Washington — 1.0%  

Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, Series B, 5.00%, 10/01/38

    2,880       3,430,627  
   

 

 

 
Security   Shares/Par
(000)
    Value  
Wisconsin — 1.0%  

Wisconsin Health & Educational Facilities Authority, Refunding RB:

   

Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/19(a)(f)

  $ 1,430     $ 1,510,921  

Froedtert Health, Inc., Series A, 5.00%, 4/01/42

    1,980       2,140,221  
   

 

 

 
      3,651,142  
   

 

 

 

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

 

    130,399,778  
   

 

 

 

Total Long-Term Investments — 159.4%
(Cost — $521,863,363)

 

    564,263,944  
   

 

 

 

Short-Term Securities — 1.5%

   

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.74%(g)(h)

    5,203,622       5,205,183  
   

 

 

 

Total Short-Term Securities — 1.5%
(Cost — $5,205,183)

 

    5,205,183  
   

 

 

 

Total Investments — 160.9%
(Cost — $527,068,546)

 

    569,469,127  

Other Assets Less Liabilities — 0.3%

 

    1,195,869  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (21.0)%

 

    (74,518,577

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (40.2)%

 

    (142,264,647
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 353,881,772  
   

 

 

 

 

(a)  U.S. 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)  Zero-coupon bond.
(c)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.
(d)  When-issued security.
(e)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(f)  All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between May 7, 2018 to August 1, 2025 is $15,995,433. See Note 4 of the Notes to Financial Statements for details.
(g)  Annualized 7-day yield as of period end.
 
(h)  During the six months ended October 31, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/17
     Net
Activity
     Shares
Held at
10/31/17
     Value at
10/31/17
     Income      Net
Realized
Gain
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     1,790,782        3,412,840        5,203,622      $ 5,205,183      $ 11,110      $ 785      $ (217
           

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)  Includes net capital gain distributions, if applicable.