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: 04/30/2018


Item 1 – Report to Stockholders


APRIL 30, 2018

 

ANNUAL REPORT

  LOGO

 

BlackRock MuniAssets Fund, Inc. (MUA)

BlackRock MuniEnhanced Fund, Inc. (MEN)

BlackRock MuniHoldings Fund, Inc. (MHD)

BlackRock MuniHoldings Fund II, Inc. (MUH)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

BlackRock MuniVest Fund II, Inc. (MVT)

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

In the 12 months ended April 30, 2018, the strongest corporate profits in seven years drove the equity market higher, while rising interest rates constrained bond returns. While the market’s appetite for risk remained healthy, risk taking varied by asset class, as bond investors cautiously shifted to higher-quality securities, and stock investors continued to embrace risk by investing abroad.

The largest global economies experienced sustained, synchronized growth for the first time since the financial crisis, leading to strong equity performance worldwide. Emerging markets stocks posted the highest return, as accelerating growth in China, the second-largest economy in the world, improved the outlook for corporate profits in most developing nations.

Short-term U.S. Treasury interest rates rose the fastest, while longer-term rates slightly increased, leading to a substantial flattening of the yield curve. The annual return for the three-month Treasury bill surpassed 1.0%, but remained well below the annual headline inflation rate of 2.5%. In contrast, the ten-year U.S. Treasury — a bellwether of the bond market — posted a negative return, as rising inflation expectations drove yields higher. In credit markets, the investment-grade and high-yield bond markets posted modest returns in a relatively benign credit environment.

Even though it faced rising pressure to boost interest rates in 2017, the U.S. Federal Reserve (the “Fed”) increased short-term interest rates just three times during the reporting period. The Fed also announced plans to reduce its $4.4 trillion balance sheet by $420 billion in 2018, which began the process of gradually reversing its unprecedented stimulus measures after the financial crisis. The economy continued to gain momentum despite the Fed’s modest reduction of economic stimulus, as unemployment dipped below 4.0%, wages increased, and job openings reached a record high. Strong economic performance may justify a more rapid pace of rate hikes in 2018, as the headline inflation rate and investors’ expectations for inflation surpassed the Fed’s target of 2.0%.

By contrast, the European Central Bank (“ECB”) and the Bank of Japan (“BoJ”) continued to expand their balance sheets despite nascent signs of sustained economic growth. Rising global growth, as well as limited bond supply, pressured other central banks to follow in the Fed’s footsteps. In October 2017, the ECB pledged to cut its bond purchases in half for 2018, while the BoJ reiterated its commitment to economic stimulus, even though the size of its balance sheet almost matched the total output of the Japanese economy.

The Fed’s measured pace of stimulus reduction could lead to moderately higher inflation, steadily rising interest rates, and improving real growth in 2018. We continue to believe the primary risks to economic expansion are trade protectionism, rapidly rising interest rates, and geopolitical tension. In particular, we are closely monitoring trade protectionism and the rise of populism in Western nations.

In December 2017, Congress passed a sweeping tax reform bill. The U.S. tax overhaul is likely to accentuate the existing reflationary themes, including corporate spending on stock buybacks, mergers & acquisitions and capital investment, which could extend the economic cycle if inflation and interest rates rise at a relatively modest pace.

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 April 30, 2018
     6-month   12-month

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

  3.82%   13.27%

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

  3.27   11.54

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

  3.41   14.51

Emerging market equities
(MSCI Emerging Markets Index)

  4.80   21.71

3-month Treasury bills
(ICE BofAML 3-Month U.S. Treasury Bill Index)

  0.68   1.17

U.S. Treasury securities
(ICE BofAML 10-Year U.S. Treasury Index)

  (3.79)   (3.64)

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

  (1.87)   (0.32)

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

  (0.76)   1.44

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

  (0.17)   3.27
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  

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

     80  

Financial Highlights

     82  

Notes to Financial Statements

     89  

Report of Independent Registered Public Accounting Firm

     100  

Automatic Dividend Reinvestment Plan

     101  

Director and Officer Information

     102  

Additional Information

     105  

Glossary of Terms Used in this Report

     107  

 

 

     3  


Municipal Market Overview  For the Reporting Period Ended April 30, 2018

 

Municipal Market Conditions

Municipal bonds experienced positive performance during the period despite rising interest rates resulting from continued Fed monetary policy normalization, firmer economic data, and the anticipated impacts of fiscal stimulus. 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 tax-exempt income, diversification, quality, and value of municipal bonds amid fiscal policy uncertainty, which saw tax reform ultimately lower the top individual tax rate just 2.6% while eliminating deductions and increasing demand for tax shelter. During the 12 months ended April 30, 2018, municipal bond funds experienced net inflows of approximately $26 billion (based on data from the Investment Company Institute).

 

For the same 12-month period, total new issuance was moderate from a historical perspective at $385 billion (well below the robust $424 billion issued in the prior 12-month period), but displayed significant month to month volatility. Notably, issuance in December posted the highest monthly total on record at $56 billion, as issuers rushed deals to market ahead of the expected elimination of the tax-exemption for advanced refunding bonds and possibly private activity bonds (PABs). Ultimately, the final version of the Tax Cuts and Jobs Act left PABs unchanged, though the elimination of advanced refundings has suppressed supply in 2018, providing a powerful technical tailwind.   S&P Municipal Bond Index

 

Total Returns as of April 30, 2018

 

  6 months: (0.76)%

 

12 months: 1.44%

 

A Closer Look at Yields

 

LOGO

From April 30, 2017 to April 30, 2018, yields on AAA-rated 30-year municipal bonds increased by 7 basis points (“bps”) from 3.02% to 3.09%, while 10-year rates increased by 35 bps from 2.14% to 2.49% and 5-year rates increased by 78 bps from 1.41% to 2.19% (as measured by Thomson Municipal Market Data). The municipal yield curve bear flattened significantly over the 12-month period with the spread between 2- and 30-year maturities flattening by 82 bps, led by 54 bps of flattening between 2- and 10-year maturities.

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 April 30, 2018, 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    2018 BLACKROCK 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, there is no guarantee that these objectives can 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 assets 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 April 30, 2018    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 April 30, 2018 ($13.21)(a)

  4.95%

Tax Equivalent Yield(b)

  8.36%

Current Monthly Distribution per Common Share(c)

  $0.0545

Current Annualized Distribution per Common Share(c)

  $0.6540

Economic Leverage as of April 30, 2018(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 40.8%, 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 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 12 months ended April 30, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUA(a)(b)

    (6.48 )%       4.47

Lipper High Yield Municipal Debt Funds(c)

    (0.77      4.04  

 

  (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 date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  Municipal bonds generated positive returns, with income offsetting a modest downturn in prices. The reporting period began on a strong note, with a favorable balance of supply and demand driving prices higher in the summer of 2017. By autumn, however, accelerating economic growth and emerging inflation pressures sparked concerns that the Fed would need to tighten monetary policy more aggressively than expected. In addition, the prospect of tax reform led to a pick-up in new-issue supply prior to year-end. These factors drove municipal bond prices lower in late 2017, and the selloff picked up speed in late January/early February due to a spike in U.S. Treasury yields. (Prices and yields move in opposite directions.) The tax-exempt market subsequently stabilized at these lower levels, and it traded largely flat with low volatility through the end of the period.

 

  The Fund’s positions in the tobacco and health care sectors, as well as in select development district and single-site project-financing issues, contributed to performance. Holdings in unrated securities and bonds in the B, BB and BBB rating categories, which performed well amid investors’ hearty appetite for higher-yielding securities, also aided results. Portfolio holdings with the longest maturity dates (typically 20 years and longer) added value given that longer-term bonds outperformed.

 

  Conversely, the Fund’s performance was hurt by positions in shorter-dated holdings — including higher-quality, pre-refunded bonds — that were most affected by the prospect of tighter Fed policy. Intermediate-term holdings, specifically those in the five- to 10-year range, also lagged somewhat.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a 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.

 

 

6    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2018 (continued)    BlackRock MuniAssets Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     04/30/18      04/30/17      Change      High      Low  

Market Price

  $ 13.21      $ 14.82        (10.86 )%     $ 15.84      $ 13.14  

Net Asset Value

    14.01        14.07        (0.43      14.29        13.98  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector  

04/30/18

    04/30/17  

Health

    22     22

County/City/Special District/School District

    17       13  

Tobacco

    16       16  

Transportation

    15       19  

Education

    10       10  

Utilities

    9       8  

Corporate

    6       7  

State

    3       3  

Housing

    2       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,

       

2018

    18

2019

    5  

2020

    12  

2021

    18  

2022

   
6
 

 

  (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  

04/30/18

    04/30/17  

AAA/Aaa

    1    

AA/Aa

    18       19  

A

    7       8  

BBB/Baa

    21       21  

BB/Ba

    12       9  

B/B

    19       11  

CCC/Caa

    1       1  

N/R(b)

    21       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 April 30, 2018 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 5%, respectively, of the Fund’s total investments.  
 

 

 

FUND SUMMARY      7  


Fund Summary  as of April 30, 2018    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 that are 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 April 30, 2018 ($10.48)(a)

  5.50%

Tax Equivalent Yield(b)

  9.29%

Current Monthly Distribution per Common Share(c)

  $0.0480

Current Annualized Distribution per Common Share(c)

  $0.5760

Economic Leverage as of April 30, 2018(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 40.8%, 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 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 12 months ended April 30, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MEN(a)(b)

    (5.23 )%       2.93

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

    (2.37      2.65  

 

  (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 date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  Municipal bonds generated positive returns, with income offsetting a modest downturn in prices. The reporting period began on a strong note, with a favorable balance of supply and demand driving prices higher in the summer of 2017. By autumn, however, accelerating economic growth and emerging inflation pressures sparked concerns that the Fed would need to tighten monetary policy more aggressively than expected. In addition, the prospect of tax reform led to a pick-up in new-issue supply prior to year-end. These factors drove municipal bond prices lower in late 2017, and the selloff picked up speed in late January/early February due to a spike in U.S. Treasury yields. (Prices and yields move in opposite directions.) The tax-exempt market subsequently stabilized at these lower levels, and it traded largely flat with low volatility through the end of the period.

 

  During the reporting period, the Fund produced a gain at net asset value. Its return was primarily derived from income given that bond prices fell slightly.

 

  The lower end of the investment-grade segment outperformed higher-quality securities in the period. As a result, the Fund’s holdings in bonds rated A and BBB aided returns. Consistent with this trend, allocations to sectors with lower average credit ratings — including transportation and health care — were additive to results.

 

  The Fund benefited from its allocation to longer-term bonds, which outpaced short-term issues. Conversely, holdings in pre-refunded securities experienced poor relative performance due to their shorter maturities.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

 

  The Fund’s position in New Jersey appropriated debt, which benefited from meaningful yield spread tightening, further contributed to results.

 

  Investments in bonds subject to the AMT helped performance. Yield spreads tightened due to legislation in the Tax Cuts and Jobs Act — which was passed in December 2017 — that eliminated the corporate AMT and significantly limited the reach of the individual AMT.

 

 

8    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2018 (continued)    BlackRock MuniEnhanced Fund, Inc.

 

  The Fund’s use of leverage, while amplifying the impact of weak price performance, was a net contributor since it provided additional income. However, the cost of leverage increased due to rising short-term interest rates.

 

  Although yields rose during the period, reinvestment had an adverse effect on the Fund’s income as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at 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.

Market Price and Net Asset Value Per Share Summary

 

    

04/30/18

     04/30/17      Change      High      Low  

Market Price

  $ 10.48      $ 11.69        (10.35 )%     $ 12.45      $ 10.34  

Net Asset Value

    11.46        11.77        (2.63      12.11        11.42  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/18     04/30/17  

Transportation

    24     24

County/City/Special District/School District

    17       18  

State

    16       15  

Health

    14       12  

Utilities

    13       15  

Education

    9       11  

Corporate

    3       3  

Housing

    2       1  

Tobacco

    2       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,

       

2018

    9

2019

    14  

2020

    3  

2021

    11  

2022

    7  

 

  (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   04/30/18     04/30/17  

AAA/Aaa

    7     11

AA/Aa

    51       57  

A

    23       17  

BBB/Baa

    13       12  

BB/Ba

    2        

N/R(b)

    4       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 April 30, 2018 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 April 30, 2018    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 that are 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 April 30, 2018 ($14.98)(a)

  5.61%

Tax Equivalent Yield(b)

  9.48%

Current Monthly Distribution per Common Share(c)

  $0.0700

Current Annualized Distribution per Common Share(c)

  $0.8400

Economic Leverage as of April 30, 2018(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 40.8%, 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 12 months ended April 30, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MHD(a)(b)

    (4.79 )%       3.07

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

    (2.37      2.65  

 

  (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 date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  Municipal bonds generated positive returns, with income offsetting a modest downturn in prices. The reporting period began on a strong note, with a favorable balance of supply and demand driving prices higher in the summer of 2017. By autumn, however, accelerating economic growth and emerging inflation pressures sparked concerns that the Fed would need to tighten monetary policy more aggressively than expected. In addition, the prospect of tax reform led to a pick-up in new-issue supply prior to year-end. These factors drove municipal bond prices lower in late 2017, and the selloff picked up speed in late January/early February due to a spike in U.S. Treasury yields. (Prices and yields move in opposite directions.) The tax-exempt market subsequently stabilized at these lower levels, and it traded largely flat with low volatility through the end of the period.

 

  The Fund’s positions in the transportation, tax-backed (state), tobacco and health care sectors contributed to performance. Holdings in lower-rated investment-grade bonds in the A and BBB rating categories, which performed well amid investors’ hearty appetite for higher-yielding securities, also aided results. Portfolio holdings with the longest maturity dates (typically 20 years and longer) added value given that longer-term bonds outperformed.

 

  Conversely, the Fund’s performance was hurt by positions in shorter-dated holdings — including higher-quality, pre-refunded bonds — that were most affected by the prospect of tighter Fed policy. Intermediate-term holdings, specifically those in the 5- to 10-year range, also lagged somewhat.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a 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    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2018 (continued)    BlackRock MuniHoldings Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     04/30/18      04/30/17      Change      High      Low  

Market Price

  $ 14.98      $ 16.65        (10.03 )%     $ 18.25      $ 14.90  

Net Asset Value

    16.41        16.85        (2.61      17.24        16.36  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/18     04/30/17  

Transportation

    24     24

Health

    18       19  

Utilities

    14       11  

County/City/Special District/School District

    12       12  

State

    11       12  

Education

    9       11  

Tobacco

    6       5  

Corporate

    5       6  

Housing

    1       (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,

       

2018

    8

2019

    23  

2020

    12  

2021

    11  

2022

   
10
 

 

  (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   04/30/18     04/30/17  

AAA/Aaa

    3     5

AA/Aa

    44       47  

A

    20       19  

BBB/Baa

    15       16  

BB/Ba

    4       4  

B

    4       2  

N/R(c)

    10       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 April 30, 2018 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 April 30, 2018    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 that are 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 April 30, 2018 ($13.75)(a)

  5.89%

Tax Equivalent Yield(b)

  9.95%

Current Monthly Distribution per Common Share(c)

  $0.0675

Current Annualized Distribution per Common Share(c)

  $0.8100

Economic Leverage as of April 30, 2018(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 40.8%, 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 12 months ended April 30, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUH(a)(b)

    (6.61 )%       3.09

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

    (2.37      2.65  

 

  (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 date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  Municipal bonds generated positive returns, with income offsetting a modest downturn in prices. The reporting period began on a strong note, with a favorable balance of supply and demand driving prices higher in the summer of 2017. By autumn, however, accelerating economic growth and emerging inflation pressures sparked concerns that the Fed would need to tighten monetary policy more aggressively than expected. In addition, the prospect of tax reform led to a pick-up in new-issue supply prior to year-end. These factors drove municipal bond prices lower in late 2017, and the selloff picked up speed in late January/early February due to a spike in U.S. Treasury yields. (Prices and yields move in opposite directions.) The tax-exempt market subsequently stabilized at these lower levels, and it traded largely flat with low volatility through the end of the period.

 

  During the reporting period, the Fund produced a gain at net asset value. Its return was primarily derived from income given that bond prices fell slightly.

 

  Bonds rated below investment grade outpaced investment-grade issues during the period, while the lower end of the investment-grade segment outperformed the highest-quality securities. As a result, the Fund’s holdings in BBB rated and high yield bonds aided returns. Consistent with this trend, allocations to sectors with lower average credit ratings — including tobacco and health care — contributed to results.

 

  Yield curve positioning was largely additive, as the Fund held a significant amount of longer-term issues relative to short-term bonds. Yields of long-maturity bonds, which have lower sensitivity to Fed policy, rose less than those on short-term bonds. Conversely, holdings in pre-refunded securities experienced poor relative performance due to their shorter maturities.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

 

 

12    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2018 (continued)    BlackRock MuniHoldings Fund II, Inc.

 

  The Fund’s use of leverage, while amplifying the impact of weak price performance, was a net contributor since it provided additional income. However, the cost of leverage increased due to rising short-term interest rates.

 

  Although yields rose during the period, reinvestment had an adverse effect on the Fund’s income as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at 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.

Market Price and Net Asset Value Per Share Summary

 

     04/30/18      04/30/17      Change      High      Low  

Market Price

  $ 13.75      $ 15.59        (11.80 )%     $ 16.63      $ 13.58  

Net Asset Value

    15.11        15.52        (2.64      15.85        15.06  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/18     04/30/17  

Transportation

    20     23

Health

    20       19  

State

    15       14  

County/City/Special District/School District

    13       12  

Utilities

    10       11  

Education

    9       10  

Tobacco

    6       4  

Corporate

    5       6  

Housing

    2       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,

       

2018

    9

2019

    24  

2020

    11  

2021

    11  

2022

   
6
 

 

  (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   04/30/18     04/30/17  

AAA/Aaa

    4     6

AA/Aa

    46       50  

A

    20       18  

BBB/Baa

    14       15  

BB/Ba

    4       3  

B

    4       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 April 30, 2018 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 2% and 1%, respectively, of the Fund’s total investments.  
 

 

 

FUND SUMMARY      13  


Fund Summary  as of April 30, 2018    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 April 30, 2018 ($12.40)(a)

  6.15%

Tax Equivalent Yield(b)

  10.39%

Current Monthly Distribution per Common Share(c)

  $0.0635

Current Annualized Distribution per Common Share(c)

  $0.7620

Economic Leverage as of April 30, 2018(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 40.8%, 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 12 months ended April 30, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUS(a)(b)

    (1.88 )%       1.33

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

    (2.37      2.65  

 

  (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 date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  Municipal bonds generated positive returns, with income offsetting a modest downturn in prices. The reporting period began on a strong note, with a favorable balance of supply and demand driving prices higher in the summer of 2017. By autumn, however, accelerating economic growth and emerging inflation pressures sparked concerns that the Fed would need to tighten monetary policy more aggressively than expected. In addition, the prospect of tax reform led to a pick-up in new-issue supply prior to year-end. These factors drove municipal bond prices lower in late 2017, and the selloff picked up speed in late January/early February due to a spike in U.S. Treasury yields. (Prices and yields move in opposite directions.) The tax-exempt market subsequently stabilized at these lower levels, and it traded largely flat with low volatility through the end of the period.

 

  During the reporting period, the Fund produced a small gain at net asset value. Its return was primarily derived from income given that bond prices fell slightly.

 

  The Fund’s positions in longer-dated bonds were beneficial. Longer-term issues, in addition to providing incremental yield, outpaced shorter maturities due to their lower sensitivity to the direction of Fed policy. Conversely, positions in short-dated securities detracted.

 

  Positions in BBB rated bonds added value, as lower-quality issues outperformed higher-quality securities. At the sector level, transportation and tax-backed (local) issues made the most significant contributions to performance due to their large weightings in the portfolio. The Fund’s position in tobacco bonds — the best performing sector in the index for the period — also contributed positively.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. At a time in which Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

 

  Reinvestment had an adverse effect on the Fund’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at 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.

 

 

14    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2018 (continued)    BlackRock MuniHoldings Quality Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     04/30/18      04/30/17      Change      High      Low  

Market Price

  $ 12.40      $ 13.38        (7.32 )%     $ 14.21      $ 12.30  

Net Asset Value

    13.35        13.95        (4.30      14.17        13.33  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/18     04/30/17  

Transportation

    31     38

County/City/Special District/School District

    26       25  

Utilities

    14       13  

Health

    8       11  

State

    8       5  

Education

    7       4  

Housing

    3       2  

Tobacco

    2       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,

       

2018

    17

2019

    12  

2020

    4  

2021

    18  

2022

    2  

 

  (b)  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   04/30/18     04/30/17  

AAA/Aaa

    6     6

AA/Aa

    52       56  

A

    28       29  

BBB/Baa

    10       7  

N/R

    4       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 April 30, 2018    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 that are 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 April 30, 2018 ($13.01)(a)

  4.10%

Tax Equivalent Yield(b)

  6.93%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Economic Leverage as of April 30, 2018(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 40.8%, 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 12 months ended April 30, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUI(a)(b)

    (2.69 )%       2.76

Lipper Intermediate Municipal Debt Funds(c)

    (3.26      1.52  

 

  (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 date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  Municipal bonds generated positive returns, with income offsetting a modest downturn in prices. The reporting period began on a strong note, with a favorable balance of supply and demand driving prices higher in the summer of 2017. By autumn, however, accelerating economic growth and emerging inflation pressures sparked concerns that the Fed would need to tighten monetary policy more aggressively than expected. In addition, the prospect of tax reform led to a pick-up in new-issue supply prior to year-end. These factors drove municipal bond prices lower in late 2017, and the selloff picked up speed in late January/early February due to a spike in U.S. Treasury yields. (Prices and yields move in opposite directions.) The tax-exempt market subsequently stabilized at these lower levels, and it traded largely flat with low volatility through the end of the period.

 

  Portfolio income was a key contributor to performance at a time of falling prices. The Fund’s use of leverage, while amplifying the impact of weak price performance, was a net contributor as it provided additional income. However, the cost of leverage increased due to rising short-term interest rates.

 

  The Fund’s yield curve positioning, highlighted by concentrations in longer-dated maturities, was beneficial. Longer-term bonds, in addition to providing incremental yield, outpaced shorter maturities due to their lower sensitivity to the direction of Fed policy. Conversely, positions in short-dated securities detracted.

 

  Positions in lower-rated investment-grade bonds added value, as higher-yielding, lower-quality securities generally outperformed. At the sector level, positions in tax-backed (state) issues — particularly New Jersey and Illinois and transportation bonds — contributed.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a 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.

 

 

16    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2018 (continued)    BlackRock Muni Intermediate Duration Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     04/30/18      04/30/17      Change      High      Low  

Market Price

  $ 13.01      $ 13.96        (6.81 )%     $ 14.41      $ 12.96  

Net Asset Value

    14.93        15.17        (1.58      15.67        14.90  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/18     04/30/17  

Transportation

    27     28

County/City/Special District/School District

    17       17  

State

    16       12  

Education

    12       14  

Health

    10       10  

Utilities

    9       11  

Corporate

    5       4  

Tobacco

    3       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,

       

2018

    3

2019

    8  

2020

    8  

2021

    15  

2022

    5  

 

  (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   04/30/18     04/30/17  

AAA/Aaa

    5     5

AA/Aa

    37       43  

A

    32       31  

BBB/Baa

    18       16  

BB/Ba

    2       1  

B

    1       1  

N/R(b)

    5       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 April 30, 2018 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 April 30, 2018    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 that are 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 April 30, 2018 ($14.05)(a)

   5.42%

Tax Equivalent Yield(b)

   9.16%

Current Monthly Distribution per Common Share(c)

   $0.0635

Current Annualized Distribution per Common Share(c)

   $0.7620

Economic Leverage as of April 30, 2018(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 40.8%, 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 12 months ended April 30, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MVT(a)(b)

    (3.74 )%       2.79

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

    (2.37      2.65  

 

  (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 date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  Municipal bonds generated positive returns, with income offsetting a modest downturn in prices. The reporting period began on a strong note, with a favorable balance of supply and demand driving prices higher in the summer of 2017. By autumn, however, accelerating economic growth and emerging inflation pressures sparked concerns that the Fed would need to tighten monetary policy more aggressively than expected. In addition, the prospect of tax reform led to a pick-up in new-issue supply prior to year-end. These factors drove municipal bond prices lower in late 2017, and the selloff picked up speed in late January/early February due to a spike in U.S. Treasury yields. (Prices and yields move in opposite directions.) The tax-exempt market subsequently stabilized at these lower levels, and it traded largely flat with low volatility through the end of the period.

 

  The Fund’s positions in the transportation, tax-backed (state), single-site project finance and tobacco sectors contributed to performance. Holdings in lower-rated investment-grade bonds in the A and BBB rating categories, which performed well amid investors’ hearty appetite for higher-yielding securities, also aided results. Portfolio holdings with the longest maturity dates (typically 20 years and longer) added value given that longer-term bonds outperformed.

 

  Conversely, the Fund’s performance was hurt by positions in shorter-dated holdings — including higher-quality, pre-refunded bonds — that were most affected by the prospect of tighter Fed policy. Intermediate-term holdings, specifically those in the 5- to 10-year range, also lagged somewhat.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a 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    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2018 (continued)    BlackRock MuniVest Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     04/30/18      04/30/17      Change      High      Low  

Market Price

  $ 14.05      $ 15.45        (9.06 )%     $ 16.18      $ 13.91  

Net Asset Value

    14.75        15.19        (2.90      15.46        14.72  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector Allocation   04/30/18     04/30/17  

Transportation

    29     26

Health

    18       18  

Utilities

    13       11  

State

    12       14  

County/City/Special District/School District

    9       12  

Corporate

    6       6  

Tobacco

    6       5  

Education

    6       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,

       

2018

    13

2019

    21  

2020

    12  

2021

    10  

2022

    9  

 

  (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   04/30/18     04/30/17  

AAA/Aaa

    4     5

AA/Aa

    42       50  

A

    20       13  

BBB/Baa

    18       16  

BB/Ba

    5       4  

B

    5       2  

N/R(b)

    6       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 April 30, 2018 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  

April 30, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Municipal Bonds — 87.8%

 

Alabama — 1.8%  

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

  $ 3,745     $ 4,305,365  

Lower Alabama Gas District, RB, Series A, 5.00%, 09/01/46

    1,910       2,257,276  

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

    2,165       2,365,349  
   

 

 

 
      8,927,990  
Alaska — 1.3%  

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

   

4.63%, 06/01/23

    640       658,285  

5.00%, 06/01/32

    1,500       1,500,030  

5.00%, 06/01/46

    4,290       4,279,532  
   

 

 

 
      6,437,847  
Arizona — 2.6%  

Arizona IDA, Refunding RB, Series A(b):

   

Basis Schools, Inc. Projects, 5.13%, 07/01/37

    960       991,939  

Odyssey Preparatory Academy Project, 5.50%, 07/01/52

    1,500       1,465,980  

City of Phoenix Arizona IDA, RB:

   

Great Hearts Academies — Veritas Project, 6.40%, 07/01/21(a)

    425       480,224  

Great Hearts Academies — Veritas Projects, 6.30%, 07/01/21(a)

    500       563,450  

Legacy Traditional Schools Project, Series A, 6.50%, 07/01/34(b)

    570       628,471  

Legacy Traditional Schools Projects, Series A, 6.75%, 07/01/44(b)

    1,000       1,104,140  

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

   

Basis Schools, Inc. Projects, 5.00%, 07/01/35

    305       312,729  

Basis Schools, Inc. Projects, 5.00%, 07/01/45

    855       869,877  

Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/35

    260       266,588  

Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/46

    290       294,869  

Legacy Traditional School Projects, 5.00%, 07/01/35

    320       328,109  

Legacy Traditional School Projects, 5.00%, 07/01/45

    255       259,279  

County of La Paz IDA, RB, Imagine Schools Desert West Middle Project, 5.88%, 06/15/48(b)

    875       873,705  

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

    1,650       1,926,688  

State of Arizona IDA, RB, Academies of Math & Science Project, Series B, 5.13%, 07/01/47(b)

    665       636,365  

State of Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.25%, 07/01/47(b)

    1,765       1,826,440  

University Medical Center Corp., RB, 6.50%, 07/01/19(a)

    500       525,920  
   

 

 

 
      13,354,773  
California — 7.5%  

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

   

5.50%, 08/01/34

    315       319,791  

6.00%, 08/01/44

    665       671,470  

6.13%, 08/01/49

    580       584,866  

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

   

5.00%, 02/01/36

    345       379,862  

5.00%, 02/01/37

    255       280,166  

California School Finance Authority, RB:

   

Alliance for College Ready Public School - 2023 Union LLC Project, Series A, 6.40%, 07/01/48

    1,570       1,753,423  

Value Schools, 6.65%, 07/01/33

    435       487,605  

Value Schools, 6.90%, 07/01/43

    975       1,066,475  
Security  

Par

(000)

    Value  
California (continued)  

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

   

5.00%, 12/01/46

  $ 725     $ 763,353  

5.25%, 12/01/56

    620       658,955  

California Statewide Communities Development Authority, Refunding RB, American Baptist Homes of the West, 6.25%, 10/01/39

    2,175       2,290,362  

California Statewide Financing Authority, RB, Asset-Backed, Tobacco Settlement, Series B, 6.00%, 05/01/43

    1,650       1,650,330  

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

   

0.00%, 08/01/26

    1,250       846,000  

0.00%, 08/01/43

    1,500       409,395  

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

   

6.50%, 05/01/36

    900       1,010,817  

6.50%, 05/01/42

    2,220       2,493,349  

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

    375       436,898  

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

   

5.70%, 06/01/46

    3,600       3,609,972  

5.60%, 06/01/36

    1,285       1,299,443  

County of Riverside California Transportation Commission, RB, Senior Lien, Series A, 5.75%, 06/01/48

    2,885       3,190,291  

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

   

5.13%, 06/01/47

    3,125       3,124,906  

5.75%, 06/01/47

    3,745       3,852,556  

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

   

4.75%, 06/01/25

    1,230       1,232,632  

5.00%, 06/01/37

    5,580       5,596,070  
   

 

 

 
      38,008,987  
Colorado — 1.3%  

Castle Oaks Metropolitan District No. 3, GO, 6.25%, 12/01/20(a)

    500       566,330  

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

    575       582,205  

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

   

6.13%, 12/01/45

    335       351,606  

6.25%, 12/01/50

    1,115       1,171,140  

Colorado International Center Metropolitan District No. 14, GOL, 5.88%, 12/01/46

    1,490       1,546,292  

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

    720       752,746  

Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project, 6.00%, 01/15/34

    1,500       1,605,435  
   

 

 

 
      6,575,754  
Connecticut — 0.9%  

Mohegan Tribal Finance Authority, RB, 7.00%, 02/01/45(b)

    1,400       1,474,004  

Mohegan Tribe of Indians of Connecticut, RB, Series A, 6.75%, 02/01/45(b)

    971       1,037,981  

Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 02/01/30(b)

    1,835       1,980,882  
   

 

 

 
      4,492,867  
 

 

 

20    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2018

  

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     $ 1,055,310  

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

    3,180       3,297,692  
   

 

 

 
      4,353,002  
Florida — 8.4%  

Boggy Creek Improvement District, Refunding RB, Special Assessment Bonds, 5.13%, 05/01/43

    1,460       1,468,614  

Capital Region Community Development District, Refunding, Special Assessment, Capital Improvement Revenue Bond, Series A-1, 5.13%, 05/01/39

    1,500       1,492,365  

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

   

1st Mortgage, 8.25%, 01/01/44

    515       386,250  

1st Mortgage, 8.25%, 01/01/49

    1,105       828,750  

5.75%, 01/01/50

    655       583,539  

County of Collier Florida IDA, Refunding RB, Arlington of Naples Project, Series A, 8.13%, 05/15/44(b)

    2,510       2,807,611  

County of Miami-Dade Florida IDA, RB, Doral Academy Project, 5.00%, 01/15/48

    915       954,244  

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

    3,500       3,791,480  

County of Palm Beach Florida Health Facilities Authority, Refunding RB, Series A, 7.25%, 06/01/34

    500       575,040  

Florida Development Finance Corp., RB:

   

Renaissance Charter School, Series A, 5.75%, 06/15/29

    690       728,661  

Renaissance Charter School, Series A, 6.00%, 06/15/34

    835       875,765  

Renaissance Charter School, Series A, 6.13%, 06/15/44

    3,180       3,293,113  

Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 08/01/29(b)(f)

    1,550       1,605,614  

Greeneway Improvement District, RB, Special Assessment Bonds, 5.13%, 05/01/43

    1,820       1,834,742  

Harbor Bay Community Development District Florida, Special Assessment Bonds, Series A, 7.00%, 05/01/33

    380       381,349  

Lakewood Ranch Stewardship District Special Assessment Bonds, Village of Lakewood Ranch Sector Projects, 4.00%, 05/01/21

    105       105,972  

Lakewood Ranch Stewardship District Special Assessment Bonds, Refunding, Lakewood Center & New Sector Projects, 8.00%, 05/01/40

    1,485       1,711,997  

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

   

4.25%, 05/01/26

    145       147,014  

5.13%, 05/01/46

    860       886,445  

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

    4,550       5,282,049  

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

   

Series A, 5.00%, 05/01/37

    845       884,960  

Series B, 5.00%, 05/01/37

    495       518,409  

Santa Rosa Bay Bridge Authority, RB, 6.25%, 07/01/28(d)(e)

    3,947       2,921,085  

Tampa Palms Open Space and Transportation Community Development District, RB, Capital Improvement, Richmond Place Project, 7.50%, 05/01/18

    295       295,000  

Tolomato Community Development District, Refunding, Special Assessment Bonds(g):

   

Convertible CAB, Series A3, 6.61%, 05/01/40

    585       553,492  

Convertible CAB, Series A4, 6.61%, 05/01/40

    305       241,935  

Series 2015-2, 6.61%, 05/01/40

    805       527,492  

Tolomato Community Development District:

   

Series 1, 6.61%, 05/01/40(g)

    1,305       1,039,354  

Series 1, 6.65%, 05/01/40(d)(e)

    50       48,322  

Series 3, 6.61%, 05/01/40(d)(e)

    875       9  

Series 3, 6.65%, 05/01/40(d)(e)

    710       7  
Security  

Par

(000)

    Value  
Florida (continued)  

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

   

6.75%, 05/01/31

  $ 1,500     $ 1,672,410  

7.00%, 05/01/41

    2,460       2,810,698  

5.50%, 05/01/42

    1,165       1,254,367  
   

 

 

 
      42,508,154  
Georgia — 1.1%  

County of Clayton Georgia Development Authority, Refunding RB, Delta Air Lines, Inc. Project, Series A, 8.75%, 06/01/29

    3,365       3,773,343  

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

   

6.38%, 11/15/19

    700       746,536  

6.63%, 11/15/19

    880       941,116  
   

 

 

 
      5,460,995  
Guam — 0.3%  

Territory of Guam, GO, Series A:

   

6.00%, 11/15/19

    270       277,149  

7.00%, 11/15/19(a)

    1,115       1,198,380  
   

 

 

 
      1,475,529  
Illinois — 5.8%  

Chicago Board of Education, GO, Dedicated Revenues:

   

Series H, 5.00%, 12/01/46

    720       706,010  

Refunding Series D, 5.00%, 12/01/27

    900       929,718  

Refunding Series D, 5.00%, 12/01/31

    1,000       1,007,530  

Refunding Series F, 5.00%, 12/01/22

    675       711,936  

Refunding Series G, 5.00%, 12/01/44

    2,150       2,118,803  

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

    1,260       1,392,376  

Illinois Finance Authority, Refunding RB:

   

Friendship Village of Schaumburg, 7.25%, 02/15/20(a)

    4,000       4,362,800  

Lutheran Home & Services Obligated Group, 5.63%, 05/15/42

    2,395       2,505,074  

Presence Health Network, Series C, 4.00%, 02/15/41

    1,500       1,484,430  

Primary Health Care Centers Program, 6.60%, 07/01/24

    890       884,571  

Rogers Park Montessori School Project, Series 2014, 6.00%, 02/01/34

    365       381,524  

Rogers Park Montessori School Project, Series 2014, 6.13%, 02/01/45

    860       897,264  

Roosevelt University Project, 6.50%, 04/01/44

    2,000       2,089,320  

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

   

Bonds, 0.00%, 12/15/56(c)

    5,005       639,339  

5.50%, 06/15/53

    2,370       2,513,480  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project Bonds, Series B, 0.00%, 12/15/54(c)

    6,980       998,978  

Railsplitter Tobacco Settlement Authority, RB(a):

   

5.50%, 06/01/21

    180       197,991  

6.00%, 06/01/21

    710       791,494  

State of Illinois, GO:

   

5.25%, 02/01/29

    1,000       1,032,430  

Series A, 5.00%, 01/01/33

    740       748,088  

Series D, 5.00%, 11/01/28

    1,365       1,415,136  

Village of Lincolnshire Illinois, Special Tax Bonds, Sedgebrook Project, 6.25%, 03/01/34

    1,659       1,662,268  
   

 

 

 
      29,470,560  
Indiana — 2.5%  

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

   

6.75%, 01/01/34

    825       963,014  

7.00%, 01/01/44

    2,000       2,346,600  
 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (continued)

April 30, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Indiana (continued)  

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

  $ 2,315     $ 2,302,314  

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

   

6.63%, 01/15/34

    290       308,580  

6.75%, 01/15/43

    525       557,912  

6.88%, 01/15/52

    2,450       2,608,785  

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

   

5.00%, 07/01/44

    470       500,503  

5.00%, 07/01/48

    1,555       1,651,410  

Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 01/15/51(b)

    1,190       1,227,092  
   

 

 

 
      12,466,210  
Iowa — 2.7%  

Iowa Finance Authority, Refunding RB:

   

Iowa Fertilizer Co. Project, Series B, 5.25%, 12/01/50(f)

    2,085       2,189,896  

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

    5       5,073  

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

    2,190       2,330,138  

Sunrise Retirement Community Project, 5.50%, 09/01/37

    1,355       1,371,518  

Sunrise Retirement Community Project, 5.75%, 09/01/43

    2,115       2,156,137  

Iowa Tobacco Settlement Authority, Refunding RB:

   

Asset-Backed, CAB, Series B, 5.60%, 06/01/34

    795       803,196  

Series C, 5.38%, 06/01/38

    4,900       4,911,907  
   

 

 

 
      13,767,865  
Kentucky — 0.9%  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing, First Tier, Series A, 5.75%, 07/01/49

    4,000       4,376,120  
   

 

 

 
Louisiana — 2.1%  

Juban Crossing Economic Development District, Refunding RB, General Infrastructure Project, Series C, 7.00%, 09/15/44(b)

    2,460       2,548,240  

Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.75%, 05/01/41

    1,745       1,854,953  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.25%, 05/15/35

    5,570       6,024,456  
   

 

 

 
      10,427,649  
Maine — 0.6%  

Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 07/01/41

    2,955       3,193,143  
   

 

 

 
Maryland — 2.6%  

County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 07/01/43(b)

    2,840       3,052,631  

Maryland EDC, RB:

   

Purple Line Light Rail Project, AMT, 5.00%, 03/31/51

    2,185       2,370,550  

Transportation Facilities Project, Series A, 5.75%, 06/01/20(a)

    3,615       3,887,535  

Maryland EDC, Refunding RB:

   

CNX Marine Terminals, Inc., 5.75%, 09/01/25

    3,085       3,218,488  

Transportation Facilities Project, Series A, 5.00%, 06/01/35

    415       462,256  
   

 

 

 
      12,991,460  
Massachusetts — 1.0%  

Massachusetts Development Finance Agency, RB, Series A(a):

   

Foxborough Regional Charter School, 7.00%, 07/01/20

    1,025       1,131,128  

North Hill Communities Issue, 6.50%, 11/15/23(b)

    2,020       2,442,261  
Security  

Par

(000)

    Value  
Massachusetts (continued)  

Massachusetts Development Finance Agency, Refunding RB, Tufts Medical Center, Series I:

   

6.75%, 01/01/21(a)

  $ 895     $ 998,041  

6.75%, 01/01/36

    595       663,342  
   

 

 

 
      5,234,772  
Michigan — 0.9%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39

    2,785       2,977,750  

Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 07/01/44

    415       442,386  

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44

    920       994,851  
   

 

 

 
      4,414,987  
Minnesota — 0.1%  

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

   

5.75%, 09/01/46

    195       205,257  

6.00%, 09/01/51

    290       308,116  
   

 

 

 
      513,373  
Missouri — 1.0%  

City of St. Louis Missouri IDA, Refunding RB, BallPark Village Development Project, Series A:

   

4.38%, 11/15/35

    685       695,480  

4.75%, 11/15/47

    760       772,791  

Kirkwood Missouri IDA, RB, Aberdeen Heights, Series A, 8.25%, 05/15/20(a)

    2,315       2,594,328  

Lees Summit Missouri IDA, RB, John Knox Obligated Group, 5.25%, 08/15/39

    1,000       1,040,600  
   

 

 

 
      5,103,199  
New Jersey — 3.5%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,065       1,128,399  

5.25%, 11/01/44

    770       816,008  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(b)

    1,150       1,160,672  

New Jersey EDA, RB:

   

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

    2,155       2,348,153  

Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 04/01/31

    2,250       2,557,778  

Provident Group-Kean Properties, Series A, 5.00%, 07/01/32

    165       178,985  

Provident Group-Kean Properties, Series A, 5.00%, 07/01/37

    260       278,080  

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

    1,530       1,681,470  

New Jersey EDA, Refunding RB, Greater Brunswick Charter School, Inc. Project, Series A, 6.00%, 08/01/49(b)

    500       505,385  

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

   

St. Barnabas Health Care System, Series A, 5.63%, 07/01/21

    2,650       2,923,268  

St. Joseph’s Healthcare System, 6.63%, 07/01/18

    1,590       1,602,211  

New Jersey Transportation Trust Fund Authority, RB, Transportation Program, Series AA, 5.25%, 06/15/41

    1,140       1,214,396  

Tobacco Settlement Financing Corp., Refunding RB, Sub-Series B, 5.00%, 06/01/46

    830       870,853  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series A, 5.25%, 06/01/46

    590       655,272  
   

 

 

 
      17,920,930  
 

 

 

22    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2018

  

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%, 07/01/42

  $ 2,970     $ 3,161,417  
   

 

 

 
New York — 7.5%  

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

   

6.25%, 06/01/41(b)

    5,300       5,519,420  

5.00%, 06/01/42

    3,155       3,107,107  

5.00%, 06/01/45

    1,185       1,154,083  

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

   

Series A-2B, 5.00%, 06/01/51

    1,900       1,972,827  

Series B, 5.00%, 06/01/45

    2,655       2,817,858  

County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 08/01/46

    3,315       3,137,449  

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

    1,310       1,389,460  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45

    2,890       2,826,940  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(a)

    125       128,146  

6.50%, 11/15/18(a)

    1,490       1,527,503  

6.50%, 11/15/28

    385       394,837  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

    1,270       1,343,393  

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

    4,705       4,942,791  

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

    455       495,063  

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

    1,080       1,176,314  

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

    1,565       1,856,951  

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

    1,335       1,335,801  

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       1,467,394  

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

    955       1,035,411  
   

 

 

 
      37,628,748  
North Carolina — 1.5%  

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

   

Deerfield Project, 6.13%, 11/01/18

    4,565       4,662,965  

Retirement Facilities Whitestone Project, 7.75%, 03/01/21

    1,000       1,149,370  

Retirement Facilities Whitestone Project, 7.75%, 03/01/21

    1,420       1,632,105  
   

 

 

 
      7,444,440  
Ohio — 3.2%  

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

   

Senior Turbo Term, 5.75%, 06/01/34

    6,745       6,684,632  

Senior Turbo Term, 5.88%, 06/01/47

    5,570       5,569,944  

6.00%, 06/01/42

    3,040       3,032,522  

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

    875       927,474  
   

 

 

 
      16,214,572  
Security  

Par

(000)

    Value  
Oklahoma — 1.4%  

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

  $ 750     $ 826,763  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B:

   

5.00%, 08/15/38

    2,990       3,253,090  

5.25%, 08/15/43

    2,690       2,961,582  
   

 

 

 
      7,041,435  
Oregon — 0.8%  

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

    1,765       1,881,543  

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

   

5.13%, 07/01/35

    620       642,698  

5.38%, 07/01/45

    1,435       1,498,571  
   

 

 

 
      4,022,812  
Pennsylvania — 4.0%  

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 05/01/42

    2,140       2,215,135  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/36

    2,000       2,172,940  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

   

5.00%, 06/01/33

    115       128,610  

5.00%, 06/01/34

    150       166,679  

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

   

6.38%, 01/01/19(a)

    5,550       5,715,168  

6.38%, 01/01/39

    615       629,084  

County of Lehigh Pennsylvania General Purpose Authority, Refunding RB, Bible Fellowship Church Homes, 5.13%, 07/01/32

    1,800       1,822,392  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 5.00%, 09/01/43

    1,365       1,516,105  

County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bonds, 7.00%, 07/01/32

    2,030       2,317,549  

Montgomery County Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49

    620       610,167  

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

    2,710       2,848,752  
   

 

 

 
      20,142,581  
Puerto Rico — 1.1%  

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

   

5.50%, 05/15/39

    635       619,531  

5.63%, 05/15/43

    2,145       2,051,285  

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

   

Public Improvement, 5.50%, 07/01/39

    665       286,781  

8.00%, 07/01/35

    1,765       745,713  

Commonwealth of Puerto Rico, GO, , 6.00%, 07/01/38(d)(e)

    750       338,438  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 6.00%, 07/01/44

    850       692,750  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 07/01/38

    990       806,850  
   

 

 

 
      5,541,348  
Rhode Island — 2.3%  

Central Falls Detention Facility Corp., Refunding RB, 7.25%, 07/15/35(d)(e)

    4,190       754,200  
 

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (continued)

April 30, 2018

  

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:

   

Series A, 5.00%, 06/01/35

  $ 1,000     $ 1,075,140  

Series A, 5.00%, 06/01/40

    980       1,039,878  

Series B, 4.50%, 06/01/45

    5,055       5,106,763  

Series B, 5.00%, 06/01/50

    3,330       3,411,619  
   

 

 

 
      11,387,600  
Tennessee — 0.4%  

County of Memphis-Shelby Tennessee Industrial Development Board, Refunding, Tax Allocation Bonds, Senior Tax Increment, Graceland Project, Series A:

   

5.50%, 07/01/37

    925       982,350  

5.63%, 01/01/46

    1,085       1,148,190  
   

 

 

 
      2,130,540  
Texas — 9.9%  

Central Texas Regional Mobility Authority, Refunding RB:

   

CAB, 0.00%, 01/01/28(c)

    1,000       699,010  

CAB, 0.00%, 01/01/29(c)

    2,000       1,333,140  

CAB, 0.00%, 01/01/30(c)

    1,170       743,090  

CAB, 0.00%, 01/01/33(c)

    3,690       2,017,544  

CAB, 0.00%, 01/01/34(c)

    4,000       2,079,560  

Senior Lien, 6.25%, 01/01/21(a)

    2,210       2,439,067  

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

   

Special Facilities, Continental Airlines, Inc., Series A, 6.63%, 07/15/38

    2,890       3,172,237  

United Airlines, Inc. Terminal E Project, 5.00%, 07/01/29

    910       984,420  

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

   

5.50%, 08/15/31

    955       1,053,069  

5.75%, 08/15/41

    720       799,603  

County of Bexar Texas Health Facilities Development Corp., RB, Army Retirement Residence Project, 6.20%, 07/01/20(a)

    5,040       5,471,374  

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

    475       570,613  

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

    2,090       2,232,392  

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

    4,200       3,685,836  

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

    865       907,991  

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

    3,080       3,472,823  

Mesquite Health Facility Development Corp., Refunding RB, 5.13%, 02/15/42

    810       833,401  

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

    1,325       1,375,403  

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

   

5.88%, 04/01/36

    1,210       1,340,970  

6.00%, 04/01/45

    1,845       2,008,928  

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

   

5.50%, 08/15/35

    290       299,634  

5.75%, 08/15/45

    580       602,295  

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

    1,600       1,672,112  
Security  

Par

(000)

    Value  
Texas (continued)  

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

   

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

  $ 2,895     $ 1,679,100  

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

    900       923,337  

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

   

LBJ Infrastructure Group LLC, 7.00%, 06/30/40

    3,775       4,142,609  

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

    3,000       3,225,240  
   

 

 

 
      49,764,798  
Utah — 0.6%  

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

    2,950       2,968,438  
   

 

 

 
Vermont — 0.2%  

Vermont EDA, Refunding, MRB, Wake Robin Corp. Project, 5.40%, 05/01/33

    770       815,877  
   

 

 

 
Virginia — 2.3%  

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

   

5.00%, 03/01/35

    495       502,692  

5.00%, 03/01/45

    505       508,449  

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

   

6.63%, 03/01/26

    1,485       1,610,602  

6.88%, 03/01/36

    1,300       1,414,985  

Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 06/01/47

    2,280       2,246,963  

Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 07/01/45(b)

    535       559,867  

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

    4,440       4,940,965  
   

 

 

 
      11,784,523  
Washington — 0.8%  

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

    1,455       1,501,167  

Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A, 5.50%, 09/01/42

    1,495       1,523,674  

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

   

5.75%, 01/01/35

    315       317,397  

6.00%, 01/01/45

    850       858,738  
   

 

 

 
      4,200,976  
Wisconsin — 1.4%  

Public Finance Authority, RB:

   

Alabama Proton Therapy Center, Series A, 6.25%, 10/01/31(b)

    605       588,393  

Alabama Proton Therapy Center, Series A, 7.00%, 10/01/47(b)

    605       609,919  

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

    900       922,680  

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

    570       589,887  

Series A, 5.00%, 12/01/45

    1,505       1,571,491  

Series A, 5.15%, 12/01/50

    1,170       1,225,236  

Wisconsin Health & Educational Facilities Authority, Refunding RB:

   

Benevolent Corporation Cedar Community, 5.00%, 06/01/41

    225       232,738  

St. Johns Communities, Inc., Series A, 7.25%, 09/15/19(a)

    425       455,039  
 

 

 

24    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Wisconsin (continued)  

St. Johns Communities, Inc., Series A, 7.63%, 09/15/19(a)

  $ 855     $ 919,740  
   

 

 

 
      7,115,123  
   

 

 

 

Total Municipal Bonds — 87.8%
(Cost — $419,424,533)

 

    442,841,394  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(h)

 

Colorado — 2.4%  

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

    11,468       11,932,401  
   

 

 

 
Florida — 3.0%  

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

   

5.25%, 10/01/18

    11,655       11,810,303  

5.25%, 10/01/18

    3,345       3,389,572  
   

 

 

 
      15,199,875  
Illinois — 2.7%  

Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 08/15/41

    7,180       7,925,069  

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

    5,056       5,569,395  
   

 

 

 
      13,494,464  
Massachusetts — 0.5%  

Commonwealth of Massachusetts Transportation Fund Revenue, RB, Rail Enhancement Program, Series A, 4.00%, 06/01/45

    2,268       2,315,284  
   

 

 

 
New York — 13.1%  

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       9,177,600  

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

   

Fiscal 2013, Series CC, 5.00%, 06/15/47

    14,181       15,562,518  

Series HH, 5.00%, 06/15/31(i)

    8,610       9,309,763  

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 02/15/47(i)

    4,520       4,933,363  

New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

    18,104       19,724,529  

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

    6,600       7,303,260  
   

 

 

 
      66,011,033  
Pennsylvania — 0.6%  

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

    2,505       2,852,627  
   

 

 

 
Rhode Island — 0.3%  

Narragansett Bay Commission, Refunding RB, Wastewater System, Series A, 4.00%, 09/01/43

    1,710       1,727,373  
   

 

 

 
Security  

Par

(000)

    Value  
Texas — 0.4%  

Lower Colorado River Authority, Refunding RB, LCRA Transmission Services Corporation Project, 4.00%, 05/15/43

  $ 2,271     $ 2,283,246  
   

 

 

 
Washington — 1.7%  

City of Bellingham Washington Water & Sewer Revenue, RB, Water & Sewer, 5.00%, 08/01/40

    7,966       8,573,401  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 24.7%
(Cost — $119,626,522)

 

    124,389,704  
   

 

 

 

Total Long-Term Investments — 112.5%
(Cost — $539,051,055)

 

    567,231,098  
   

 

 

 
     Shares         
Short-Term Securities — 0.4%  

BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.48%(j)(k)

    2,226,571       2,226,571  
   

 

 

 

Total Short-Term Securities — 0.4%
(Cost — $2,226,571)

 

    2,226,571  
   

 

 

 

Total Investments — 112.9%
(Cost — $541,277,626)

 

    569,457,669  

Other Assets Less Liabilities — 1.4%

 

    7,245,844  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.3)%

 

    (72,233,065
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 504,470,448  
   

 

 

 

 

(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)  Non-income producing security.
(e)  Issuer filed for bankruptcy and/or is in default.
(f)  Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.
(g)  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.
(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 year ended April 30, 2018, 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
04/30/18

     Value at
04/30/18
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     1,057,065        1,169,506        2,226,571      $ 2,226,571      $ 24,826      $ 260      $ (96
           

 

 

    

 

 

    

 

 

    

 

 

 

 

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

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (continued)

April 30, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

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

     29          06/20/18        $ 3,469        $ 18,732  

Long U.S. Treasury Bond

     53          06/20/18          7,624          8,839  

5-Year U.S. Treasury Note

     23          06/29/18          2,611          12,011  
                 

 

 

 
        $ 39,582  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of year 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)

   $      $      $      $      $ 39,582      $      $ 39,582  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 year ended April 30, 2018, 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

   $      $      $      $      $ 613,477      $      $ 613,477  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ 279,076      $      $ 279,076  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 20,009,572  

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)

   $        $ 567,231,098        $        $ 567,231,098  

Short-Term Securities

     2,226,571                            2,226,571  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,226,571        $ 567,231,098        $               —        $ 569,457,669  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

 

26    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

      Level 1        Level 2        Level 3        Total  

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 39,582        $        $        $ 39,582  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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 $71,924,984 are categorized as Level 2 within the disclosure hierarchy.

During the year ended April 30, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  

April 30, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 124.9%

 

Alabama — 0.6%  

County of Tuscaloosa Board of Education, RB, Special Tax School Warrants, 5.00%, 02/01/43

  $ 885     $ 989,899  

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

    1,010       1,104,748  
   

 

 

 
      2,094,647  
Alaska — 0.7%  

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

    990       1,071,051  

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

   

6.00%, 09/01/19

    765       806,096  

6.00%, 09/01/19

    435       458,368  
   

 

 

 
      2,335,515  
Arizona — 2.1%  

County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group, Series A, 4.00%, 01/01/41

    3,940       4,019,076  

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

   

5.00%, 10/01/27

    2,700       2,807,703  

5.00%, 10/01/29

    400       415,900  
   

 

 

 
      7,242,679  
California — 14.3%  

Anaheim California Public Financing Authority, RB, Senior, Public Improvements Project, Series A (AGM), 6.00%, 09/01/24

    5,000       5,766,950  

California Health Facilities Financing Authority, RB:

   

St. Joseph Health System, Series A, 5.75%, 07/01/39

    550       574,376  

Sutter Health, Series A, 4.00%, 11/15/42

    230       233,464  

Sutter Health, Series B, 5.88%, 08/15/20(a)

    1,200       1,307,028  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/37

    1,090       1,208,941  

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 04/01/42

    1,480       1,604,453  

City & County of San Francisco California Airports Commission, Refunding ARB, Series A, AMT, 5.00%, 05/01/42

    155       173,447  

City of Redding California Electric System Revenue, COP, Refunding Series A (AGM), 5.00%, 06/01/30

    600       601,590  

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

   

Series A, 5.00%, 03/01/36

    410       459,991  

Series A, 5.00%, 03/01/37

    455       509,741  

Series A-1, 5.75%, 03/01/34

    850       924,035  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 03/01/21(a)

    2,175       2,417,012  

County of San Mateo California Community College District, GO, CAB, Election of 2001, Series C (NPFGC), 0.00%, 09/01/30(b)

    12,740       8,686,642  

Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 0.00%, 08/01/43(c)

    2,500       1,997,525  

Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2008, Series B, 0.00%, 08/01/36(b)

    3,750       1,856,625  

Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C, 0.00%, 08/01/38(b)

    5,000       2,278,300  

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

   

0.00%, 08/01/31

    2,145       1,199,741  

0.00%, 08/01/32

    2,680       1,407,000  
Security   Par
(000)
    Value  
California (continued)  

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

   

Series C, 0.00%, 07/01/38

  $ 1,600     $ 734,320  

Series G, 0.00%, 07/01/34

    650       306,390  

Series G, 0.00%, 07/01/35

    690       305,794  

Series G, 0.00%, 07/01/36

    1,035       431,284  

Series G, 0.00%, 07/01/37

    690       270,432  

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

   

0.00%, 07/01/30

    5,000       3,313,950  

0.00%, 07/01/31

    1,280       811,725  

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

   

5.00%, 08/01/21

    700       767,767  

5.00%, 08/01/21

    600       658,086  

Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B, 0.00%, 08/01/36(b)

    5,500       2,604,910  

West Basin Municipal Water District California, COP, Refunding, Series B (AGC), 5.00%, 08/01/18(a)

    5,035       5,076,539  
   

 

 

 
      48,488,058  
Colorado — 0.6%  

Regional Transportation District, COP, Refunding, Series A, 5.38%, 06/01/31

    2,000       2,122,940  
   

 

 

 
Connecticut — 0.3%  

Connecticut Housing Finance Authority, Refunding RB:

   

S/F Housing, Sub-Series A-1, 3.85%, 11/15/43

    580       572,558  

Sub-Series B-1, 4.00%, 05/15/45(d)

    530       531,993  
   

 

 

 
      1,104,551  
District of Columbia — 1.6%  

District of Columbia Ballpark Revenue, RB, Series B-1 (NPFGC), 5.00%, 02/01/31

    5,360       5,370,130  
   

 

 

 
Florida — 13.9%  

Country of Broward Florida Airport System, ARB, AMT, 5.00%, 10/01/47

    3,150       3,504,721  

County of Brevard Florida Health Facilities Authority, Refunding RB, Health First, Inc. Project, 5.00%, 04/01/39

    1,600       1,721,840  

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

    850       862,342  

County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt Obligated Group:

   

6.00%, 11/15/19(a)

    5       5,308  

6.00%, 11/15/37

    1,445       1,539,720  

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

    4,050       4,104,958  

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

   

5.63%, 10/01/26

    960       1,047,053  

5.38%, 10/01/32

    3,160       3,412,579  

County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 5.75%, 07/01/18(a)

    1,400       1,409,240  

County of Miami-Dade Florida, RB, Seaport:

   

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

    2,025       2,317,734  

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

    415       480,126  

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

    660       754,697  

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

    640       728,410  

County of Miami-Dade Florida, Refunding RB, 4.00%, 10/01/40

    885       905,311  

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

    190       210,032  

County of Miami-Dade Florida Aviation, Refunding RB, Series B, AMT, 5.00%, 10/01/40

    2,490       2,770,399  
 

 

 

28    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

County of Miami-Dade Florida Educational Facilities Authority, RB, University of Miami, Series A, 5.00%, 04/01/40

  $ 2,995     $ 3,287,971  

County of Miami-Dade Florida Health Facilities Authority, Refunding RB, Nicklaus Children’s Hospital Project, 5.00%, 08/01/42

    605       668,579  

County of Miami-Dade Florida School Board Foundation, Inc., COP, Series B (AGC), 5.00%, 05/01/18(a)

    9,000       9,000,000  

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

   

5.00%, 08/01/41

    560       608,826  

5.00%, 08/01/47

    1,620       1,756,355  

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

   

5.00%, 10/01/21(a)

    30       32,779  

5.00%, 10/01/31

    1,970       2,143,636  

County of Putnam Florida Development Authority, Refunding RB, Seminole Project, Series A, 5.00%, 03/15/42

    520       577,902  

County of Sarasota Florida Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A, 5.63%, 07/01/39

    275       285,013  

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

   

5.13%, 06/01/27

    2,000       2,165,200  

5.38%, 10/01/29

    1,050       1,151,776  
   

 

 

 
      47,452,507  
Georgia — 3.5%  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 08/15/54

    500       570,935  

County of LaGrange-Troup Hospital Authority, Refunding RB, Revenue Anticipation Certificates, 4.00%, 04/01/47

    1,250       1,210,375  

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

    7,475       9,381,424  

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

   

5.00%, 04/01/33

    140       152,453  

5.00%, 04/01/44

    380       408,306  
   

 

 

 
      11,723,493  
Illinois — 16.0%  

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

    2,900       3,280,944  

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

   

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

    4,290       4,691,115  

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

    820       888,896  

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

    230       250,201  

City of Chicago Illinois Transit Authority, RB:

   

5.25%, 12/01/49

    900       986,850  

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

    595       636,769  

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

    45       47,250  

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

   

5.75%, 08/15/34

    650       715,137  

6.00%, 08/15/41

    1,000       1,105,050  

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

   

4.13%, 08/15/37

    740       737,521  

5.00%, 08/15/44

    350       368,519  

Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.50%, 06/15/30

    10,490       10,507,938  

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

    2,785       3,109,174  

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

    9,145       10,138,970  
Security   Par
(000)
    Value  
Illinois (continued)  

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

   

0.00%, 12/15/26

  $ 5,000     $ 3,435,950  

0.00%, 12/15/33

    9,950       4,772,119  

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 06/15/44(b)

    3,450       1,004,571  

Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21(a)

    675       752,476  

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

    3,565       3,834,157  

State of Illinois, GO:

   

5.25%, 02/01/33

    830       849,339  

5.50%, 07/01/33

    820       848,192  

5.25%, 02/01/34

    830       848,501  

5.50%, 07/01/38

    445       458,043  
   

 

 

 
      54,267,682  
Indiana — 1.2%  

Indiana Finance Authority, RB, Series A:

   

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

    1,100       1,199,506  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44

    515       548,423  

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

    700       791,784  

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

   

5.25%, 01/01/19(a)

    115       117,650  

5.25%, 01/01/29

    485       495,752  

State of Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 07/01/40

    890       949,924  
   

 

 

 
      4,103,039  
Iowa — 2.8%  

Iowa Finance Authority, RB, Iowa Health Care Facilities, Series A (AGC), 5.63%, 08/15/19(a)

    5,725       5,992,243  

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

   

5.60%, 12/01/26

    1,630       1,704,083  

5.70%, 12/01/27

    735       764,834  

5.80%, 12/01/29

    500       519,855  

5.85%, 12/01/30

    520       540,972  
   

 

 

 
      9,521,987  
Louisiana — 1.7%  

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

    2,795       3,019,718  

Louisiana Public Facilities Authority, Refunding RB, Christus Health, Series B (AGC), 6.50%, 07/01/30

    1,250       1,285,600  

State of Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, First Lien, Series A, 4.00%, 05/01/41

    1,520       1,546,950  
   

 

 

 
      5,852,268  
Maine — 0.2%  

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

    645       625,631  
   

 

 

 
Maryland — 0.4%  

State of Maryland Stadium Authority Revenue, RB, Construction & Revitalization, 5.00%, 05/01/36

    1,235       1,410,284  
   

 

 

 
Massachusetts — 2.3%  

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

    2,090       2,252,769  

Massachusetts Development Finance Agency, Refunding RB, Partners Health Care System, 4.00%, 07/01/41

    920       930,267  
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (continued)

April 30, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts (continued)  

Massachusetts HFA, Refunding RB, AMT:

   

Series A, 4.45%, 12/01/42

  $ 795     $ 821,490  

Series C, 5.35%, 12/01/42

    460       468,317  

Massachusetts Port Authority, Refunding ARB, Series A, AMT, 5.00%, 07/01/47

    1,720       1,912,141  

Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series A, 5.00%, 05/15/43

    1,280       1,406,989  
   

 

 

 
      7,791,973  
Michigan — 2.7%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, 2nd Lien, Series E (BHAC), 5.75%, 07/01/18(a)

    2,500       2,516,075  

City of Detroit Michigan Water Supply System Revenue, RB, 2nd Lien, Series B (AGM), 6.25%, 07/01/19(a)

    400       419,828  

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 07/01/41

    1,700       1,860,667  

Michigan Finance Authority, Refunding RB:

   

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

    460       395,375  

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

    20       21,925  

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

    600       603,012  

Royal Oak Hospital Finance Authority Michigan, Refunding RB, Beaumont Health Credit Group, Series D, 5.00%, 09/01/39

    1,040       1,126,715  

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

   

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

    145       159,716  

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

    700       766,899  

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

    900       987,633  

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

    380       420,949  
   

 

 

 
      9,278,794  
Minnesota — 0.8%  

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

   

6.50%, 11/15/18(a)

    385       394,671  

6.50%, 11/15/38

    2,115       2,167,664  
   

 

 

 
      2,562,335  
Mississippi — 0.1%  

Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Facilities Refinancing, Series A, 4.00%, 08/01/43

    400       408,992  
   

 

 

 
Nebraska — 1.8%  

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

   

5.00%, 09/01/32

    5,010       5,454,237  

5.25%, 09/01/37

    750       824,100  
   

 

 

 
      6,278,337  
Nevada — 1.6%  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 04/01/19(a)

    850       881,883  

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

   

5.25%, 07/01/42

    500       525,020  

(AGM), 5.25%, 07/01/39

    3,800       3,992,052  
   

 

 

 
      5,398,955  
New Jersey — 8.8%  

New Jersey EDA, RB:

   

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

    895       975,219  

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

    685       745,383  

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

    1,975       2,025,955  
Security   Par
(000)
    Value  
New Jersey (continued)  

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

  $ 25     $ 25,653  

Series WW, 5.25%, 06/15/33

    155       166,794  

Series WW, 5.00%, 06/15/34

    205       216,154  

Series WW, 5.00%, 06/15/36

    925       974,164  

Series WW, 5.25%, 06/15/40

    265       282,628  

New Jersey EDA, Refunding RB:

   

Series B, 5.50%, 06/15/30

    5,360       6,078,937  

Sub-Series A, 4.00%, 07/01/32

    1,270       1,260,450  

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

   

5.50%, 12/01/26

    360       382,154  

5.75%, 12/01/27

    2,330       2,500,859  

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

    970       998,334  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.25%, 06/15/33

    1,490       1,579,623  

Transportation Program, Series AA, 5.00%, 06/15/38

    1,885       1,970,730  

Transportation System, Series A, 5.50%, 06/15/41

    3,150       3,286,174  

Transportation System, Series AA, 5.50%, 06/15/39

    1,150       1,228,533  

Transportation System, Series B, 5.50%, 06/15/31

    1,000       1,059,180  

Transportation System, Series B, 5.00%, 06/15/42

    520       534,778  

Transportation System, Series D, 5.00%, 06/15/32

    735       779,975  

South Jersey Port Corp., ARB, Marine Terminal, Series B, AMT, 5.00%, 01/01/42

    390       416,789  

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

   

5.00%, 06/01/46

    1,845       1,991,991  

5.25%, 06/01/46

    405       449,805  
   

 

 

 
      29,930,262  
New York — 6.2%  

City of New York New York Municipal Water Finance Authority, Refunding RB, Second General Resolution, Fiscal 2012, Series BB, 5.25%, 06/15/44

    1,425       1,568,583  

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-4, 5.50%, 01/15/33

    1,600       1,641,456  

City of New York New York Transitional Finance Authority, RB:

   

Fiscal 2009, Series S-4, 5.50%, 01/15/34

    2,750       2,821,060  

Series S-3, 4.00%, 07/15/46

    1,130       1,152,758  

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

    1,480       1,634,468  

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

   

5.75%, 02/15/21(a)

    430       473,348  

5.75%, 02/15/47

    270       291,946  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(a)

    2,985       3,060,132  

6.50%, 11/15/18(a)

    245       251,167  

6.50%, 11/15/28

    770       789,673  

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

    2,715       2,935,567  

State of New York Dormitory Authority, RB, Series B, 5.75%, 03/15/19(a)

    1,200       1,241,100  

State of New York HFA, RB, M/F Housing, Series B:

   

Affordable Housing, AMT, 5.30%, 11/01/37

    2,500       2,502,700  

Green Bond, 3.88%, 11/01/48

    590       587,380  
   

 

 

 
      20,951,338  
Ohio — 2.2%  

County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Series A, 4.00%, 08/01/38

    1,565       1,566,174  

County of Butler Ohio, Refunding RB, UC Health, 4.00%, 11/15/37

    460       462,898  

County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/21(a)

    530       606,537  
 

 

 

30    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Ohio (continued)  

State of Ohio Turnpike Commission, RB, CAB, Junior Lien, Infrastructure Projects, Series A-2, 0.00%, 02/15/37(b)

  $ 10,000     $ 4,804,800  
   

 

 

 
      7,440,409  
Oregon — 1.5%  

Counties of Washington & Multnomah Oregon School District No. 48J Beaverton, GO, Convertible CAB, Series D, 0.00%, 06/15/36(c)

    835       942,456  

County of Clackamas Oregon Community College District, GO, Convertible Deferred Interest Bonds, Series A, 0.00%, 06/15/40(c)

    440       448,021  

County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38(b)

    995       429,651  

State of Oregon, GO, Refunding, Veteran’s Welfare Series 100th, 3.65%, 06/01/42

    610       596,574  

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

    2,815       2,724,864  
   

 

 

 
      5,141,566  
Pennsylvania — 8.8%  

Commonwealth Financing Authority, RB:

   

Series B, 5.00%, 06/01/42

    1,600       1,708,672  

Tobacco Master Settlement Payment, 5.00%, 06/01/33

    220       246,037  

Tobacco Master Settlement Payment, 5.00%, 06/01/34

    390       433,364  

Tobacco Master Settlement Payment, 5.00%, 06/01/35

    740       820,312  

Tobacco Master Settlement Payment (AGM), 4.00%, 06/01/39

    1,050       1,053,434  

County of Berks IDA, Refunding RB, Tower Health Project, 4.00%, 11/01/39

    320       320,000  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49

    645       634,770  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 06/30/42

    1,035       1,107,895  

PA Bridges Finco LP, AMT, 5.00%, 12/31/34

    7,290       7,914,534  

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

    1,305       1,405,394  

Pennsylvania Economic Development Financing Authority, Refunding RB, Series A, 4.00%, 11/15/42

    570       575,404  

Pennsylvania Higher Educational Facilities Authority, Refunding RB, Thomas Jefferson University, Series A, 5.25%, 09/01/50

    2,330       2,572,739  

Pennsylvania Turnpike Commission, RB:

   

Series A, 5.00%, 12/01/38

    620       678,032  

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

    2,385       2,627,793  

Series B, 5.00%, 12/01/40

    935       1,030,267  

Series C, 5.50%, 12/01/23(a)

    555       644,350  

Sub-Series B-1, 5.00%, 06/01/42

    1,750       1,909,950  

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

    575       631,333  

Pennsylvania Turnpike Commission, Refunding RB:

   

Motor Licensed Fund Enhancement, Third Series, 4.00%, 12/01/38

    2,070       2,092,977  

Series A-1, 5.00%, 12/01/40

    765       840,926  

Philadelphia School District, GO, Refunding, Series F, 5.00%, 09/01/38

    305       335,021  

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

   

6.00%, 09/01/18

    5       5,069  

6.00%, 09/01/18

    395       400,494  
   

 

 

 
      29,988,767  
Rhode Island — 1.1%  

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

   

4.50%, 06/01/45

    1,055       1,065,803  

5.00%, 06/01/50

    2,630       2,694,461  
   

 

 

 
      3,760,264  
Security   Par
(000)
    Value  
South Carolina — 4.9%  

South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM), 6.50%, 08/01/21(a)

  $ 115     $ 130,063  

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

    3,000       3,137,340  

State of South Carolina Ports Authority, RB, AMT, 5.25%, 07/01/50

    2,330       2,573,858  

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

   

Series A, 5.50%, 12/01/54

    6,225       6,794,525  

Series E, 5.50%, 12/01/53

    745       812,422  

State of South Carolina Public Service Authority, Refunding RB:

   

Santee Cooper, Series B, 5.00%, 12/01/38

    2,080       2,216,240  

Series A, 5.50%, 01/01/19(a)

    80       81,948  

Series A, 5.50%, 01/01/19(a)

    920       941,786  
   

 

 

 
      16,688,182  
South Dakota — 1.3%  

South Dakota Health & Educational Facilities Authority, Refunding RB, Avera Health Issue:

   

4.00%, 07/01/37

    1,225       1,239,026  

4.00%, 07/01/42

    3,000       3,018,210  
   

 

 

 
      4,257,236  
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       5,253,450  

Tennessee Housing Development Agency, RB:

   

3.60%, 07/01/42

    550       533,538  

3.65%, 07/01/47

    1,465       1,416,362  
   

 

 

 
      7,203,350  
Texas — 14.9%  

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

   

5.38%, 05/15/19(a)

    1,280       1,325,414  

6.00%, 05/15/19(a)

    1,990       2,073,301  

6.00%, 11/15/35

    110       114,720  

5.38%, 11/15/38

    70       72,403  

City of San Antonio Texas Electric & Gas Revenue, RB, Junior Lien, 5.00%, 02/01/38

    575       624,444  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 09/15/36(b)

    2,130       990,045  

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

    750       827,985  

Dallas Texas Area Rapid Transit, Refunding RB, Series A, 5.00%, 12/01/48

    3,160       3,513,130  

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

   

Series D, 5.00%, 11/01/38

    1,975       2,108,609  

Series D, 5.00%, 11/01/42

    1,500       1,598,385  

Series H, 5.00%, 11/01/32

    3,000       3,223,590  

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

    975       1,098,045  

Grand Parkway Transportation Corp., RB, Convertible CAB, Series B, 0.00%, 10/01/46(c)

    2,095       1,914,222  

Leander ISD, GO, Refunding, CAB, Series D (PSF-GTD), 0.00%, 08/15/38(b)

    3,420       1,400,319  

North Texas Tollway Authority, Refunding RB, 1st Tier:

   

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

    2,270       2,331,948  

System, Series A, 6.00%, 01/01/28

    525       538,445  

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

    4,015       4,125,934  

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

    3,800       3,898,762  
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (continued)

April 30, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

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

   

0.00%, 09/15/35

  $ 4,990     $ 2,271,897  

0.00%, 09/15/36

    11,525       4,944,571  

0.00%, 09/15/37

    8,245       3,327,270  

San Antonio Water System, Refunding RB, Junior Lien, Series A, 5.00%, 05/15/48(d)

    1,355       1,540,500  

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

   

5.00%, 12/15/31

    1,190       1,288,711  

5.00%, 12/15/32

    705       761,901  

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

    1,275       1,376,720  

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 08/15/41

    3,080       3,311,770  
   

 

 

 
      50,603,041  
Utah — 1.1%  

Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/42

    1,240       1,381,596  

Utah Transit Authority, RB, Series A (AGM), 5.00%, 06/15/18(a)

    2,500       2,509,650  
   

 

 

 
      3,891,246  
Virginia — 0.1%  

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

   

5.50%, 05/15/19

    125       129,594  

5.50%, 05/15/19

    225       233,388  
   

 

 

 
      362,982  
Washington — 1.2%  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40

    1,015       1,094,505  

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

   

5.00%, 10/01/39

    525       548,163  

5.25%, 10/01/39

    625       657,031  

Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.00%, 08/15/41

    1,835       1,863,167  
   

 

 

 
      4,162,866  
Wisconsin — 1.5%  

State of Wisconsin Health & Educational Facilities Authority, RB:

   

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

    1,375       1,434,097  

Marshfield Clinic Health System, Inc. Series C, 4.00%, 02/15/42

    1,450       1,432,383  

State of Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc. Obligated Group, 4.00%, 04/01/39

    2,205       2,198,738  
   

 

 

 
      5,065,218  
   

 

 

 

Total Municipal Bonds — 124.9%
(Cost — $399,221,333)

 

    424,881,524  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(e)

 

Arizona — 0.4%  

City of Phoenix Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 07/01/19(a)

    1,200       1,243,026  
   

 

 

 
California — 2.9%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge Subordinate, 4.00%, 04/01/47(f)

    3,827       3,939,316  
Security   Par
(000)
    Value  
California (continued)  

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

   

5.00%, 05/01/18

  $ 466     $ 466,179  

5.00%, 05/01/18

    2,344       2,343,821  

Los Angeles California Unified School District, GO, Election of 2008, Series B-1, 5.25%, 07/01/42(f)

    1,571       1,863,581  

San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(a)

    404       420,986  

University of California, RB, Series O, 5.75%, 05/15/19(a)

    840       874,089  
   

 

 

 
      9,907,972  
Colorado — 2.4%  

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

   

5.50%, 07/01/34(f)

    900       928,251  

5.00%, 02/01/41

    7,000       7,281,505  
   

 

 

 
      8,209,756  
Connecticut — 0.4%  

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

    1,381       1,534,439  
   

 

 

 
District of Columbia — 1.6%  

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

    1,005       1,059,892  

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

    1,779       1,809,176  

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

    2,530       2,753,854  
   

 

 

 
      5,622,922  
Florida — 4.8%  

County of Miami-Dade Florida Transit System, Refunding RB, Sales Tax, 5.00%, 07/01/42

    4,480       4,834,167  

County of Miami-Dade Florida Water & Sewer System, RB, (AGM), 5.00%, 10/01/20(a)

    4,621       4,942,771  

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 08/01/19(a)

    3,544       3,701,767  

South Miami Health Facilities Authority, Refunding RB, Baptist Health South Florida, 5.00%, 08/15/47

    2,640       2,933,814  
   

 

 

 
      16,412,519  
Illinois — 3.2%  

State of Illinois, RB, Build Illinois, Series B, 5.25%, 06/15/19(a)(f)

    4,399       4,561,300  

State of Illinois Toll Highway Authority, RB:

   

Series A, 5.00%, 01/01/38

    2,138       2,328,734  

Series A, 5.00%, 01/01/40

    2,730       3,007,804  

Series B, 5.00%, 01/01/40

    1,050       1,164,141  
   

 

 

 
      11,061,979  
Kansas — 1.6%  

County of Wyandotte Kansas Unified School District, GO, Series A, 5.50%, 09/01/47

    4,723       5,575,843  
   

 

 

 
Maryland — 1.3%  

City of Baltimore Maryland Water Utility Fund, RB, Series A:

   

Sub-Water Projects, 5.00%, 07/01/41

    2,808       3,149,446  

Wastewater Project, 5.00%, 07/01/46

    1,061       1,186,984  
   

 

 

 
      4,336,430  
Massachusetts — 0.5%  

Commonwealth of Massachusetts, GO, Series A, 5.00%, 03/01/46

    1,461       1,610,701  
   

 

 

 
Michigan — 3.3%  

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

    1,970       2,150,257  
 

 

 

32    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Michigan (continued)  

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

  $ 7,530     $ 8,146,632  

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

    870       965,500  
   

 

 

 
      11,262,389  
Nevada — 5.3%  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 04/01/19(a)(f)

    3,778       3,916,695  

County of Clark Nevada, GOL, Stadium Improvement, Series A, 5.00%, 06/01/38

    3,061       3,502,738  

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

   

5.50%, 07/01/19

    4,499       4,681,940  

5.75%, 07/01/19

    1,829       1,909,096  

Las Vegas Valley Water District Nevada, GO, Refunding, Water Improvement, Series A, 5.00%, 06/01/46

    3,460       3,879,343  
   

 

 

 
      17,889,812  
New Jersey — 2.2%  

County of Hudson New Jersey Improvement Authority, RB, Hudson County Vocational-Technical Schools Project, 5.25%, 05/01/51

    800       901,678  

New Jersey State Turnpike Authority, Refunding RB:

   

Series B, 4.00%, 01/01/37

    2,308       2,396,567  

Series G, 4.00%, 01/01/43

    2,146       2,203,346  

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36(f)

    1,840       1,913,753  
   

 

 

 
      7,415,344  
New York — 6.6%  

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

   

5.75%, 06/15/18(a)

    290       290,756  

5.75%, 06/15/40

    969       972,300  

City of New York New York Transitional Finance Authority, RB, Future Tax, Sub-Series A-3, 5.00%, 08/01/40(f)

    3,058       3,482,861  

City of New York New York Water & Sewer System, Refunding RB:

   

2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 06/15/47

    5,680       6,233,787  

Series DD, 5.00%, 06/15/35

    1,665       1,857,585  

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

    3,470       3,911,506  

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

    1,500       1,689,762  

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

    2,241       2,552,670  

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

    1,300       1,324,356  
   

 

 

 
      22,315,583  
Ohio — 1.1%  

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