UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-09191
Name of Fund: BlackRock MuniHoldings Insured Fund II, Inc. (MUE)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock MuniHoldings Insured Fund II, Inc., 800 Scudders Mill
Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton,
NJ 08543-9011
Registrant's telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2009
Date of reporting period: 08/01/2008 - 10/31/2008
Item 1 - Schedule of Investments
BlackRock MuniHoldings Insured Fund II, Inc.
Schedule of Investments October 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Alabama - 1.2% Jefferson County, Alabama, Limited Obligation School Warrants, Series A,
5.50%, 1/01/22 $ 3,580 $ 3,004,730
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Alaska - 1.4% Anchorage, Alaska, Water Revenue Refunding Bonds, 6%, 9/01/24 (a) 1,630 1,672,266
Matanuska-Susitna Boro, Alaska, GO, Series A, 6%, 3/01/10 (b)(c) 1,700 1,783,147
--------------
3,455,413
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Arkansas - 4.4% Arkansas State Development Finance Authority, M/F Mortgage Revenue
Refunding Bonds, Series C, 5.35%, 12/01/35 (c)(d) 12,215 10,644,517
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California - 19.3% California State Various Purpose, GO, 5.25%, 12/01/22 (e) 2,935 2,940,635
California State Veterans, GO, Refunding, AMT, Series BZ, 5.35%,
12/01/21 (c) 9,350 8,506,724
Dixon, California, Unified School District, GO (Election of 2002),
5.20%, 8/01/44 (e) 2,405 2,196,943
Eastern Municipal Water District, California, Water and Sewer, COP,
Series H, 5%, 7/01/35 1,175 1,030,839
Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Refunding Bonds, Proposition C, VRDN, Second Senior
Series A, 8%, 7/01/20 (c)(f)(g) 5,000 5,000,000
Modesto, California, Schools Infrastructure Financing Agency,
Special Tax Bonds, 5.50%, 9/01/36 (a) 4,240 3,731,666
Port of Oakland, California, Revenue Bonds, AMT, Series K, 5.75%,
11/01/21 (c)(h) 3,000 2,703,900
Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L,
5.375%, 11/01/27 (c)(h) 5,000 4,146,450
Roseville, California, Joint Union High School District,
GO (Election of 2004), Series A, 5%, 8/01/29 (c)(h) 2,985 2,773,513
Sacramento, California, City Financing Authority, Capital Improvement
Revenue Bonds, 5%, 12/01/27 (a) 150 139,357
Sacramento County, California, Airport System Revenue Bonds, AMT,
Senior Series B, 5.25%, 7/01/39 (e) 5,350 4,052,892
San Diego, California, Community College District, GO (Election of 2002),
5%, 5/01/30 (e) 1,485 1,390,272
San Francisco, California, City and County Airport Commission,
International Airport, Special Facilities Lease Revenue Bonds (SFO Fuel
Company LLC), AMT, Series A, 6.10%, 1/01/20 (e) 1,250 1,189,663
Stockton, California, Public Financing Revenue Bonds (Redevelopment
Projects), Series A, 5.25%, 9/01/31 (i) 495 408,613
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedule of Investments,
the names and descriptions of many of the securities have been abbreviated
according to the list below.
AMT Alternative Minimum Tax (subject to)
CABS Capital Appreciation Bonds
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
M/F Multi-Family
PCR Pollution Control Revenue Bonds
S/F Single-Family
VRDN Variable Rate Demand Notes
BlackRock MuniHoldings Insured Fund II, Inc.
Schedule of Investments October 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Stockton, California, Public Financing Revenue Bonds (Redevelopment
Projects), Series A, 5.25%, 9/01/34 (i) $ 2,930 $ 2,365,448
Vista, California, COP (Community Projects), 5%, 5/01/37 (c) 5,400 4,538,268
--------------
47,115,183
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Colorado - 4.6% Aurora, Colorado, COP, 5.75%, 12/01/10 (a)(b) 6,285 6,705,718
Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT,
Senior Series A-2, 7.50%, 4/01/31 190 200,095
Colorado Health Facilities Authority, Hospital Revenue Refunding Bonds
(Poudre Valley Health Care), Series A, 5.75%, 12/01/09 (b)(e) 4,000 4,212,520
--------------
11,118,333
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Connecticut - 0.6% Connecticut State, GO, Refunding, Series D, 5%, 12/01/24 (c) 1,520 1,525,472
-----------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.9% District of Columbia, Deed Tax Revenue Bonds (Housing Production Trust
Fund - New Communities Project), Series A, 5%, 6/01/32 (c) 2,500 2,161,125
-----------------------------------------------------------------------------------------------------------------------------------
Florida - 33.2% Brevard County, Florida, Health Facilities Authority, Healthcare
Facilities Revenue Bonds (Health First, Inc. Project), 5%, 4/01/34 2,600 1,726,842
Broward County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT,
Series E, 5.90%, 10/01/39 (j)(k)(l) 2,310 2,144,050
Broward County, Florida, School Board, COP, Series A, 5.25%, 7/01/33 (e) 5,600 5,095,832
Hillsborough County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT,
Series 1, 5.375%, 10/01/49 (j)(k)(l) 3,385 2,873,323
Hillsborough County, Florida, IDA, Hospital Revenue Bonds (H. Lee Moffitt
Cancer Center Project), Series A, 5.25%, 7/01/37 4,700 3,404,774
Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company
Project), Series B, 5.15%, 9/01/25 1,200 1,188,300
Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Baptist Medical Center Project), 5%, 8/15/37 (e) 7,740 6,770,333
Jacksonville, Florida, Port Authority Revenue Bonds, AMT, 6%, 11/01/38 (m) 6,250 5,562,812
Lee Memorial Health System, Florida, Hospital Revenue Bonds, Series A,
5%, 4/01/32 (a) 5,000 4,392,250
Miami, Florida, Special Obligation Revenue Bonds (Street and Sidewalk
Improvement Program), 5%, 1/01/37 (c) 2,900 2,442,351
Miami-Dade County, Florida, Aviation Revenue Bonds, AMT, Series A, 5%,
10/01/33 (e) 6,730 5,063,719
Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami
International Airport), AMT, Series A, 5.25%, 10/01/41 (e) 13,800 10,343,790
Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami
International Airport), AMT, Series A, 5.50%, 10/01/41 (e) 6,700 5,251,125
Miami-Dade County, Florida, School Board, COP, Refunding, Series B,
5.25%, 5/01/28 (m) 5,000 4,788,250
Miami-Dade County, Florida, School Board, COP, Refunding, Series B,
5.25%, 5/01/31 (m) 3,600 3,404,772
Miami-Dade County, Florida, Special Obligation Revenue Bonds,
Sub-Series A, 5.24%, 10/01/37 (c)(n) 3,670 518,865
Orlando, Florida, Senior Tourist Development Tax Revenue Bonds (6th Cent
Contract Payments), Series A, 5.25%, 11/01/38 (m) 4,000 3,625,960
Pasco County, Florida, Half-Cent Sales Tax Revenue Bonds, 5.125%,
12/01/28 (a) 6,300 5,560,758
BlackRock MuniHoldings Insured Fund II, Inc.
Schedule of Investments October 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Saint Johns County, Florida, Water and Sewer Revenue Bonds, CABS, 5.352%,
6/01/31 (a)(n) $ 5,065 $ 1,189,362
Seminole County, Florida, Water and Sewer Revenue Bonds, 5%, 10/01/31 6,250 5,731,250
--------------
81,078,718
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Idaho - 0.2% Idaho Housing and Finance Association, S/F Mortgage Revenue Bonds, AMT,
Series E, 6%, 1/01/32 360 360,108
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Illinois - 3.2% Chicago, Illinois, O'Hare International Airport, General Airport Revenue
Refunding Bonds, Third Lien, AMT, Series A, 5.75%, 1/01/19 (c) 3,125 2,928,000
Chicago, Illinois, O'Hare International Airport, General Airport Revenue
Refunding Bonds, Third Lien, Series A, 5%, 1/01/31 (c) 1,430 1,236,964
Illinois State Finance Authority, Revenue Refunding Bonds (Central DuPage
Health System), VRDN, Series B, 1.25%, 11/01/38 (f)(g) 3,500 3,500,000
Lake, Cook, Kane and McHenry Counties, Illinois, Community Unit School
District Number 220, GO, 6%, 12/01/20 (h) 125 130,429
--------------
7,795,393
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Indiana - 5.4% Indiana Municipal Power Agency, Power Supply System Revenue Bonds,
Series A, 5%, 1/01/37 (c) 8,000 6,672,800
Indiana Municipal Power Agency, Power Supply System Revenue Bonds,
Series A, 5%, 1/01/42 (c) 8,000 6,489,120
--------------
13,161,920
-----------------------------------------------------------------------------------------------------------------------------------
Kansas - 2.5% Kansas State Development Finance Authority, Health Facilities Revenue
Bonds (Sisters of Charity Leavenworth), Series J, 6.125%, 12/01/20 3,510 3,527,620
Sedgwick and Shawnee Counties, Kansas, S/F Mortgage Revenue Bonds, AMT,
Series A-2, 6.20%, 12/01/33 (j)(l) 2,615 2,635,005
--------------
6,162,625
-----------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.4% Kentucky Economic Development Financing Authority, Louisville Arena
Project Revenue Bonds (Louisville Arena Authority, Inc.), Sub-Series A-1,
6%, 12/01/38 (m) 1,150 1,085,933
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Louisiana - 3.1% Louisiana Public Facilities Authority Revenue Bonds (CHRISTUS Health
Project), VRDN, Series C, 9.90%, 7/01/47 (c)(f)(g) 6,250 6,250,000
Louisiana State Gas and Fuels Tax Revenue Bonds, Series A, 5%,
5/01/41 (c)(h) 1,600 1,386,640
--------------
7,636,640
-----------------------------------------------------------------------------------------------------------------------------------
Michigan - 4.1% Michigan State Hospital Finance Authority, Revenue Refunding Bonds
(Mercy-Mount Clemens), Series A, 6%, 5/15/09 (b)(c) 1,000 1,029,510
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series A, 5.50%,
6/01/30 (o) 2,000 1,639,640
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series C, 5.65%,
9/01/29 (o) 5,000 4,250,650
Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit
Edison Co. Project), Series AA, 6.40%, 8/01/24 (a) 3,000 3,065,520
--------------
9,985,320
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BlackRock MuniHoldings Insured Fund II, Inc.
Schedule of Investments October 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Minnesota - 5.5% Prior Lake, Minnesota, Independent School District Number 719, GO, 5.50%,
2/01/16 (e) $ 2,555 $ 2,646,188
Prior Lake, Minnesota, Independent School District Number 719, GO, 5.50%,
2/01/17 (e) 1,830 1,895,313
Prior Lake, Minnesota, Independent School District Number 719, GO, 5.50%,
2/01/18 (e) 3,570 3,697,413
Prior Lake, Minnesota, Independent School District Number 719, GO, 5.50%,
2/01/19 (e) 2,840 2,941,360
Sauk Rapids, Minnesota, Independent School District Number 47, GO,
Series A, 5.625%, 2/01/18 (c) 2,185 2,306,683
--------------
13,486,957
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Nevada - 4.7% Clark County, Nevada, Airport Revenue Bonds (Jet Aviation Fuel Tax), AMT,
Series C, 5.375%, 7/01/20 (a) 1,200 1,069,896
Clark County, Nevada, Water Reclamation District, Limited Tax, GO, 6%,
7/01/38 10,000 10,182,500
Nevada Housing Division, S/F Mortgage Revenue Bonds, AMT, Series A-2,
6.30%, 4/01/22 (c) 95 95,753
--------------
11,348,149
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New Jersey - 5.4% New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%,
7/01/33 (c) 11,000 10,306,340
New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series C, 5%,
1/01/30 (e) 3,000 2,860,410
--------------
13,166,750
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New York - 6.1% Nassau Health Care Corporation, New York, Health System Revenue Bonds,
5.75%, 8/01/09 (b)(e) 12,300 12,871,212
Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series
A-1, 5.25%, 6/01/21 (a) 2,000 1,919,840
--------------
14,791,052
-----------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.4% North Carolina HFA, Home Ownership Revenue Bonds, AMT, Series 14-A, 5.35%,
1/01/22 (a) 1,235 1,096,668
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Ohio - 1.2% Aurora, Ohio, City School District, COP, 6.10%, 12/01/09 (b)(c) 1,745 1,844,238
Kent State University, Ohio, University Revenue Bonds, 6%, 5/01/24 (a) 1,000 1,016,170
--------------
2,860,408
-----------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.1% Claremore, Oklahoma, Public Works Authority, Capital Improvement Revenue
Refunding Bonds, Series A, 5.25%, 6/01/14 (b)(e) 2,385 2,611,170
-----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 0.1% Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds
(Capital Projects and Equipment Program), 6.15%, 12/01/29 (a) 305 260,275
-----------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 4.1% Providence, Rhode Island, Redevelopment Agency Revenue Refunding Bonds
(Public Safety and Municipal Buildings), Series A, 5.75%, 4/01/10 (a)(b) 5,555 5,876,690
Rhode Island State Health and Educational Building Corporation Revenue
Bonds (Rhode Island School of Design), Series D, 5.50%, 8/15/31 (o) 4,685 4,213,455
--------------
10,090,145
-----------------------------------------------------------------------------------------------------------------------------------
South Carolina - 6.0% South Carolina Housing Finance and Development Authority, Mortgage Revenue
Refunding Bonds, AMT, Series A-2, 6.35%, 7/01/19 (e) 1,335 1,345,373
South Carolina State Public Service Authority, Revenue Refunding Bonds,
Series A, 5%, 1/01/42 (a) 15,000 13,161,000
--------------
14,506,373
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniHoldings Insured Fund II, Inc.
Schedule of Investments October 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.5% Metropolitan Government of Nashville and Davidson County, Tennessee,
Health and Education Facilities Board, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 5.875%, 11/15/09 (a)(b) $ 3,500 $ 3,681,965
-----------------------------------------------------------------------------------------------------------------------------------
Texas - 15.8% Dallas-Fort Worth, Texas, International Airport, Joint Revenue Bonds,
AMT, Series B, 6%, 11/01/23 (c) 1,300 1,181,570
Dallas-Fort Worth, Texas, International Airport Revenue Refunding and
Improvement Bonds, AMT, Series A, 5.875%, 11/01/17 (c)(h) 1,835 1,756,334
Dallas-Fort Worth, Texas, International Airport Revenue Refunding and
Improvement Bonds, AMT, Series A, 5.875%, 11/01/18 (c)(h) 2,150 2,029,407
Dallas-Fort Worth, Texas, International Airport Revenue Refunding and
Improvement Bonds, AMT, Series A, 5.875%, 11/01/19 (c)(h) 2,390 2,227,169
El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds,
Series A, 6%, 3/01/15 (e) 115 123,049
El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds,
Series A, 6%, 3/01/16 (e) 170 181,898
El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds,
Series A, 6%, 3/01/17 (e) 180 192,598
Katy, Texas, Independent School District, GO, Series C, 5%, 2/15/38 6,300 5,792,283
North Texas Tollway Authority, System Revenue Refunding Bonds, First Tier,
5.75%, 1/01/40 (c) 14,750 13,684,902
North Texas Tollway Authority, System Revenue Refunding Bonds, First Tier,
Series B, 5.75%, 1/01/40 (c) 1,000 927,790
North Texas Tollway Authority, System Revenue Refunding Bonds, Series A,
5.625%, 1/01/33 (c) 10,975 10,345,803
--------------
38,442,803
-----------------------------------------------------------------------------------------------------------------------------------
Washington - 2.7% Chelan County, Washington, Public Utility District Number 001, Consolidated
Revenue Bonds (Chelan Hydro System), AMT, Series A, 5.45%, 7/01/37 (a) 3,840 2,992,550
Lewis County, Washington, GO, Refunding, 5.75%, 12/01/09 (a)(b) 1,805 1,883,716
Lewis County, Washington, GO, Refunding, 5.75%, 12/01/24 (a) 1,640 1,672,866
--------------
6,549,132
-----------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 0.4% Wisconsin State Health and Educational Facilities Authority Revenue Bonds
(Blood Center of Southeastern Wisconsin Project), 5.75%, 6/01/34 1,250 1,053,413
-----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 2.1% Puerto Rico Commonwealth, Public Improvement, GO, 5.125%, 7/01/30 (e) 5,725 5,140,707
-----------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds - 141.6% 345,377,397
-----------------------------------------------------------------------------------------------------------------------------------
Municipal Bonds Transferred to
Tender Option Bond Trusts (p)
-----------------------------------------------------------------------------------------------------------------------------------
California - 9.1% Palomar Pomerado Health Care District, California, GO (Election of 2004),
Series A, 5.125%, 8/01/37 (c) 7,360 6,862,611
San Jose, California, GO (Libraries, Parks and Public Safety Projects), 5%,
9/01/30 (c) 3,805 3,560,051
Sequoia, California, Unified High School District, GO, Refunding, Series B,
5.50%, 7/01/35 (e) 5,189 5,138,414
Tustin, California, Unified School District, Senior Lien Special Tax Bonds
(Community Facilities District Number 97-1), Series A, 5%, 9/01/32 (e) 2,920 2,609,721
Tustin, California, Unified School District, Senior Lien Special Tax Bonds
(Community Facilities District Number 97-1), Series A, 5%, 9/01/38 (e) 4,620 4,039,220
--------------
22,210,017
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniHoldings Insured Fund II, Inc.
Schedule of Investments October 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to Par
State Tender Option Bond Trusts (p) (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.4% Colorado Health Facilities Authority Revenue Bonds (Catholic Health),
Series C-3, 5.10%, 10/01/41 (e) $ 9,410 $ 8,309,406
-----------------------------------------------------------------------------------------------------------------------------------
Florida - 4.1% Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County
Program), AMT, Series A-2, 6%, 9/01/40 (j)(k)(l) 4,500 4,348,575
Saint Petersburg, Florida, Public Utilities Revenue Refunding Bonds, 5%,
10/01/35 (c) 6,493 5,822,069
--------------
10,170,644
-----------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.5% Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25%, 10/01/34 (e) 6,290 6,167,471
-----------------------------------------------------------------------------------------------------------------------------------
Illinois - 6.9% Chicago, Illinois, O'Hare International Airport, General Airport Revenue
Refunding Bonds, Third Lien, AMT, Series A, 5%, 1/01/38 (e) 15,000 13,155,225
Chicago, Illinois, Water Revenue Refunding Bonds, Second Lien, 5.25%,
11/01/33 (e) 3,969 3,652,994
--------------
16,808,219
-----------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 4.0% Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding
Bonds, Senior Series A, 5%, 7/01/35 5,535 4,999,710
Massachusetts State School Building Authority, Dedicated Sales Tax Revenue
Bonds, Series A, 5%, 8/15/30 (e) 4,994 4,733,354
--------------
9,733,064
-----------------------------------------------------------------------------------------------------------------------------------
New York - 2.8% New York City, New York, Sales Tax Asset Receivable Corporation Revenue
Bonds, Series A, 5.25%, 10/15/27 (a) 6,750 6,770,317
-----------------------------------------------------------------------------------------------------------------------------------
Washington - 2.8% Bellevue, Washington, GO, Refunding, 5.50%, 12/01/39 (c) 6,883 6,753,198
-----------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts - 35.6% 86,922,336
-----------------------------------------------------------------------------------------------------------------------------------
Total Long-Term Investments (Cost - $478,500,290) - 177.2% 432,299,733
-----------------------------------------------------------------------------------------------------------------------------------
Short-Term Securities Shares
-----------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund, 1.63% (q)(r) 6,289,380 6,289,380
-----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost - $6,289,380) - 2.6% 6,289,380
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $484,789,670*) - 179.8% 438,589,113
Other Assets Less Liabilities - 0.8% 2,054,100
Liability for Trust Certificates, Including Interest Expense and
Fees Payable - (21.0)% (51,348,057)
Preferred Shares, at Redemption Value - (59.6)% (145,374,948)
--------------
Net Assets Applicable to Common Shares - 100.0% $ 243,920,208
==============
* The cost and unrealized appreciation (depreciation) of investments as of
October 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 428,354,697
=============
Gross unrealized appreciation $ 4,713,843
Gross unrealized depreciation (45,342,669)
-------------
Net unrealized depreciation $ (40,628,826)
=============
(a) AMBAC Insured.
(b) 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.
(c) MBIA Insured.
(d) FHA Insured.
BlackRock MuniHoldings Insured Fund II, Inc.
Schedule of Investments October 31, 2008 (Unaudited)
(e) FSA Insured.
(f) Variable rate security. Rate shown is as of report date. Maturity shown is
the final maturity date.
(g) Security may have a maturity of more than one year at the time of
issuance, but has variable rate and demand features that qualify it as a
short-term security.
(h) FGIC Insured.
(i) Radian Insured.
(j) GNMA Collateralized.
(k) FHLMC Collateralized.
(l) FNMA Collateralized.
(m) Assured Guaranty Insured.
(n) Represents a zero-coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(o) XL Capital Insured.
(p) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction.
(q) Represents the current yield as of report date.
(r) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Affiliate Net
Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund (18,529,084) $ 72,865
--------------------------------------------------------------------------
o Effective August 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are
used in determining the fair value of investments, which are as follows:
o Level 1 - price quotations in active markets/exchanges for
identical securities
o Level 2 - other observable inputs (including, but not limited
to: quoted prices for similar assets or liabilities in markets
that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss
severities, credit risks, and default rates) or other
market-corroborated inputs)
o Level 3 - unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs
are not available (including the Fund's own assumption used in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
For information about the Fund's policy regarding valuation of investments
and other significant accounting policies, please refer to the Fund's most
recent financial statements as contained in its annual report.
The following table summarizes the inputs used as of October 31, 2008 in
determining the fair valuation of the Fund's investments:
--------------------------------------------------------------------------
Valuation Investments in
Inputs Securities
--------------------------------------------------------------------------
Level 1 $ 6,289,380
Level 2 432,299,733
Level 3 --
--------------------------------------------------------------------------
Total $ 438,589,113
==============
Item 2 - Controls and Procedures
2(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the registrant's last fiscal quarter that have
materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock MuniHoldings Insured Fund II, Inc.
By: /s/ Donald C. Burke
--------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock MuniHoldings Insured Fund II, Inc.
Date: December 19, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Donald C. Burke
--------------------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock MuniHoldings Insured Fund II, Inc.
Date: December 19, 2008
By: /s/ Neal J. Andrews
--------------------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniHoldings Insured Fund II, Inc.
Date: December 19, 2008