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 811-08081

 

Name of Fund: BlackRock MuniHoldings Fund, Inc. (MHD)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock MuniHoldings 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: 04/30/2010

 

Date of reporting period: 04/30/2010

 

Item 1 – Report to Stockholders

 


 

 

Annual Report

(BLACKROCK LOGO)

 

 

APRIL 30, 2010

 

BlackRock Apex Municipal Fund, Inc. (APX)

BlackRock MuniAssets Fund, Inc. (MUA)

BlackRock MuniEnhanced Fund, Inc. (MEN)

BlackRock MuniHoldings Fund, Inc. (MHD)

BlackRock MuniHoldings Fund II, Inc. (MUH)

BlackRock MuniHoldings Insured Fund, Inc. (MUS)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

BlackRock MuniVest Fund II, Inc. (MVT)

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE



 


 

Table of Contents


 

 

 




 

 

Page




 

 

 

Dear Shareholder

 

3

Annual Report:

 

 

Fund Summaries

 

4

The Benefits and Risks of Leveraging

 

12

Derivative Financial Instruments

 

12

Financial Statements:

 

 

Schedules of Investments

 

13

Statements of Assets and Liabilities

 

51

Statements of Operations

 

53

Statements of Changes in Net Assets

 

54

Statements of Cash Flows

 

58

Financial Highlights

 

59

Notes to Financial Statements

 

67

Report of Independent Registered Public Accounting Firm

 

76

Important Tax Information

 

78

Automatic Dividend Reinvestment Plans

 

79

Officers and Directors

 

80

Additional Information

 

83


 

 

 


2

ANNUAL REPORT

APRIL 30, 2010




 


 

Dear Shareholder

Although overall global economic and financial conditions have generally improved over the past year, the period ended with high levels of market volatility and diminishing investor confidence sparked by the sovereign debt crisis in Europe, concerns over the strength of the economic recovery and uncertainty surrounding the future of interest rate policies. Additionally, as the period drew to a close, the increasing likelihood of more stringent financial market regulations added to the overall sense of investment uncertainty. Despite the uneven nature of recent market conditions, we continue to believe that the “Great Recession” likely ended at some point last summer, thanks primarily to massive fiscal and monetary stimulus, and that the global economy remains in recovery mode.

Global equity markets bottomed in early 2009 and since that time have moved unevenly higher as investors were lured back into the markets by depressed valuations, desire for higher yields and improvements in corporate earnings prospects. There have been several corrections along the way and volatility levels have remained elevated — reflections of mixed economic data, lingering deflation issues (especially in Europe) and uncertainty surrounding financial regulations. On balance, however, improving corporate revenues and profits and a positive macro backdrop helped push stock prices higher over the last twelve and six months. From a geographic perspective, US equities have outpaced their international counterparts in recent months, as the domestic economic recovery has been more pronounced and as credit-related issues have held European markets down.

Within fixed income markets, yields have been moving unevenly as improving economic conditions have been acting to push Treasury yields higher (and prices correspondingly lower), while concerns over ongoing deflation threats have acted as a counterweight. As the period drew to a close, Treasury yields were falling as investors flocked to the “safe haven” asset class in the face of escalating uncertainty. Over the course of the last twelve and six months, however, Treasuries underperformed other areas of the bond market, particularly the high yield sector, which has been benefiting from increased investor demand. Meanwhile, municipal bonds slightly outperformed taxable sectors over both the six- and twelve-month periods thanks to continued high demand levels, but have continued to face the headwinds of ongoing state and local budget problems. As in the taxable arena, high yield municipals have been outperforming the rest of the market.

Regarding cash investments, yields on money market securities remain near all-time lows (producing returns only marginally above zero percent), with the Federal Open Market Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an “extended period.”

Against this backdrop, the major market averages posted the following returns:

 

 

 

 

 

 

 

 

Total Returns as of April 30, 2010

 

6-month

 

12-month

 









US equities (S&P 500 Index)

 

 

15.66

%

 

38.84

%









Small cap US equities (Russell 2000 Index)

 

 

28.17

 

 

48.95

 









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

 

 

2.48

 

 

34.43

 









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

 

 

0.04

 

 

0.15

 









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

 

 

(0.54

)

 

(1.32

)









Taxable fixed income (Barclays Capital US Aggregate Bond Index)

 

 

2.54

 

 

8.30

 









Tax-exempt fixed income (Barclays Capital Municipal Bond Index)

 

 

3.68

 

 

8.85

 









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

 

 

11.60

 

 

42.53

 










 

 

 

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

Global financial markets continue to show signs of improvement, but questions about the strength and sustainability of the recovery abound. Through periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.

 

Sincerely,

-s- Rob Kapito

Rob Kapito

President, BlackRock Advisors, LLC


 

 

 




 

THIS PAGE NOT PART OF YOUR FUND REPORT

3




 

 



 

 

Fund Summary as of April 30, 2010

BlackRock Apex Municipal Fund, Inc.


 


Investment Objective


BlackRock Apex Municipal Fund, Inc. (APX) (the “Fund”) seeks to provide shareholders with high current income exempt from federal income taxes by investing primarily in a portfolio of medium- to lower-grade or unrated municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes.

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

 


Performance


For the 12 months ended April 30, 2010, the Fund returned 22.73% based on market price and 27.99% based on net asset value (“NAV”). For the same period, the closed-end Lipper High Yield Municipal Debt Funds category posted an average return of 34.42% on a market price basis and 31.62% on a NAV basis. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. Positive performance was derived primarily from sector allocation decisions and included concentrations in transportation, health care and corporate-related debt, which continue to benefit from the relative outperformance of these sectors. In light of positive returns in the municipal market, portfolio duration positioning has also proven beneficial, reflecting recent moves to modestly increase the portfolio’s sensitivity to interest rate fluctuations. Negative factors included underweight positioning in the tax-backed, public utility and the county/city/special district/school district sectors, which staged a modest rebound late in the reporting period. In addition, the ongoing compression in credit spreads remains pronounced with respect to non-rated bonds, in which the Fund maintains below market weight exposure. More significantly, a majority of peers within the Lipper category employ a higher degree of leverage, which can enhance both returns and distribution yields.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results


 


Fund Information



 

 

 

 

 

Symbol on New York Stock Exchange (“NYSE”)

 

 

APX

 

Initial Offering Date

 

 

July 25, 1989

 

Yield on Closing Market Price as of April 30, 2010 ($8.87)1

 

 

5.95%

 

Tax Equivalent Yield2

 

 

9.15%

 

Current Monthly Distribution per Common Share3

 

 

$0.044

 

Current Annualized Distribution per Common Share3

 

 

$0.528

 

Leverage as of April 30, 20104

 

 

4%

 







 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 12.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

4/30/10

 

4/30/09

 

Change

 

High

 

Low

 













Market Price

 

$

8.87

 

$

7.72

 

 

14.90

%

$

9.29

 

$

7.46

 

Net Asset Value

 

$

9.19

 

$

7.67

 

 

19.82

%

$

9.19

 

$

7.67

 


















The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







Health

 

29

%

 

22

%

 

Corporate

 

20

 

 

24

 

 

County/City/Special District/School District

 

16

 

 

20

 

 

Transportation

 

11

 

 

11

 

 

Education

 

7

 

 

6

 

 

Tobacco

 

5

 

 

3

 

 

State

 

4

 

 

2

 

 

Utilities

 

4

 

 

6

 

 

Housing

 

4

 

 

6

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







AAA/Aaa

 

7

%

 

7

%

 

AA/Aa

 

2

 

 

5

 

 

A

 

11

 

 

12

 

 

BBB/Baa

 

26

 

 

23

 

 

BB/Ba

 

8

 

 

10

 

 

B

 

7

 

 

5

 

 

CCC/Caa

 

4

 

 

3

 

 

Not Rated6

 

35

 

 

35

 

 










 

 

 

 

5

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

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2010 and April 30, 2009, the market value of these securities was $14,523,630 representing 8% and $8,923,111 representing 6%, respectively, of the Fund’s long-term investments.


 

 

 




4

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Fund Summary as of April 30, 2010

BlackRock MuniAssets Fund, Inc.


 


Investment Objective


BlackRock MuniAssets Fund, Inc. (MUA) (the “Fund”) seeks to provide shareholders with current income exempt from federal income taxes by investing primarily in a portfolio of medium- to lower-grade or unrated municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes.

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

 


Performance


For the 12 months ended April 30, 2010, the Fund returned 24.17% based on market price and 27.72% based on NAV. For the same period, the closed-end Lipper High Yield Municipal Debt Funds category posted an average return of 34.42% on a market price basis and 31.62% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Positive performance was derived primarily from sector allocation decisions and included concentrations in transportation, health care and corporate-related debt, which continue to benefit from the relative outperformance of these sectors. In light of positive returns in the municipal market, portfolio duration positioning has also proven beneficial, reflecting recent moves to modestly increase the portfolio’s sensitivity to interest rate fluctuations. Negative factors included underweight positioning in the tax-backed, public utility and the county/city/special district/school district sectors, which staged a modest rebound late in the reporting period. In addition, the ongoing compression in credit spreads remains pronounced with respect to non-rated bonds, in which the Fund maintains below market weight exposure. More significantly, a majority of peers within the Lipper category employ a higher degree of leverage, which can enhance both returns and distribution yields.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information



 

 

 

 

 

Symbol on NYSE

 

 

MUA

 

Initial Offering Date

 

 

June 25, 1993

 

Yield on Closing Market Price as of April 30, 2010 ($12.65)1

 

 

5.93%

 

Tax Equivalent Yield2

 

 

9.12%

 

Current Monthly Distribution per Common Share3

 

 

$0.0625

 

Current Annualized Distribution per Common Share3

 

 

$0.7500

 

Leverage as of April 30, 20104

 

 

4%

 







 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

4/30/10

 

4/30/09

 

Change

 

High

 

Low

 













Market Price

 

$

12.65

 

$

10.91

 

 

15.95

%

$

12.78

 

$

10.64

 

Net Asset Value

 

$

12.63

 

$

10.59

 

 

19.26

%

$

12.63

 

$

10.59

 


















The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







Health

 

29

%

 

25

%

 

Corporate

 

24

 

 

26

 

 

County/City/Special District/School District

 

13

 

 

18

 

 

Transportation

 

11

 

 

12

 

 

Education

 

6

 

 

4

 

 

Tobacco

 

5

 

 

2

 

 

State

 

4

 

 

2

 

 

Utilities

 

4

 

 

7

 

 

Housing

 

4

 

 

4

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







AAA/Aaa

 

6

%

 

9

%

 

AA/Aa

 

3

 

 

3

 

 

A

 

14

 

 

19

 

 

BBB/Baa

 

26

 

 

19

 

 

BB/Ba

 

8

 

 

9

 

 

B

 

7

 

 

5

 

 

CCC/Caa

 

4

 

 

3

 

 

CC/Ca

 

 

 

1

 

 

Not Rated6

 

32

 

 

32

 

 










 

 

 

 

5

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

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2010 and April 30, 2009, the market value of these securities was $15,867,930 representing 6% and $12,884,659 representing 6%, respectively, of the Fund’s long-term investments.


 

 

 




ANNUAL REPORT

APRIL 30, 2010

5




 

 



 

 

Fund Summary as of April 30, 2010

BlackRock MuniEnhanced Fund, Inc.


 


Investment Objective


BlackRock MuniEnhanced Fund, Inc. (MEN) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies by investing primarily in a portfolio of long-term, investment grade municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes.

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

 


Performance


For the 12 months ended April 30, 2010, the Fund returned 29.59% based on market price and 18.76% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 24.79% on a market price basis and 15.40% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Among the factors that contributed to Fund performance during the reporting period were the Fund’s constructive position toward the market during a period of declining yields; exposure to the long end of the yield curve during a period of curve flattening; a general tightening of credit spreads, which drove performance in the Fund’s holdings of insured bonds with weaker underlying credits; and the Fund’s concentration in the transportation and housing sectors, which outperformed during the period. Conversely, lower relative exposure to the public utility and education sectors detracted from Fund performance as both segments performed well. The Fund’s holdings of zero-coupon bonds also detracted from performance as spreads in this sector generally underperformed relative to spreads on coupon bonds.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information



 

 

 

 

 

Symbol on NYSE

 

 

MEN

 

Initial Offering Date

 

 

March 2, 1989

 

Yield on Closing Market Price as of April 30, 2010 ($10.81)1

 

 

6.33%

 

Tax Equivalent Yield2

 

 

9.74%

 

Current Monthly Distribution per Common Share3

 

 

$0.057

 

Current Annualized Distribution per Common Share3

 

 

$0.684

 

Leverage as of April 30, 20104

 

 

39%

 







 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Auction Market Preferred Shares (“Preferred Shares”) and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

4/30/10

 

4/30/09

 

Change

 

High

 

Low

 













Market Price

 

$

10.81

 

$

8.88

 

 

21.73

%

$

10.85

 

$

8.59

 

Net Asset Value

 

$

10.90

 

$

9.77

 

 

11.57

%

$

11.16

 

$

9.62

 


















The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







County/City/Special District/School District

 

28

%

 

29

%

 

Transportation

 

24

 

 

23

 

 

State

 

19

 

 

21

 

 

Utilities

 

14

 

 

12

 

 

Health

 

7

 

 

4

 

 

Housing

 

3

 

 

4

 

 

Education

 

3

 

 

2

 

 

Corporate

 

2

 

 

4

 

 

Tobacco

 

 

 

1

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







AAA/Aaa

 

46

%

 

45

%

 

AA/Aa

 

23

 

 

33

 

 

A

 

26

 

 

19

 

 

BBB/Baa

 

5

 

 

3

 

 










 

 

 

 

5

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


 

 

 




6

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Fund Summary as of April 30, 2010

BlackRock MuniHoldings Fund, Inc.


 


Investment Objective


BlackRock MuniHoldings Fund, Inc. (MHD) (the “Fund”) seeks to provide shareholders with current income exempt from federal income taxes by investing primarily in a portfolio of long-term, investment grade municipal obligations the interest on which, in the opinion of bond counsel to the issuers, is exempt from federal income taxes.

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

 


Performance


For the 12 months ended April 30, 2010, the Fund returned 40.68% based on market price and 27.31% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 28.13% on a market price basis and 22.67% on a NAV basis. All returns reflect reinvestment of dividends and distributions. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Positive performance was attributable in part to sector allocation decisions and included concentrations in health care, housing, county/city/special district/school district and corporate-related debt, which all performed well. Increasing risk appetite has also proven beneficial given the portfolio’s focus on lower-rated credits. Additionally, portfolio positioning with respect to a modestly long duration stance and an emphasis on longer-dated bonds was additive in an environment where yields on the long end of the curve fell substantially. Negative factors included underweight positioning in the tax-backed, public utilities and tobacco sectors, portions of which have performed well on a relative basis.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information



 

 

 

Symbol on NYSE

 

MHD

Initial Offering Date

 

May 2, 1997

Yield on Closing Market Price as of April 30, 2010 ($15.70)1

 

6.57%

Tax Equivalent Yield2

 

10.11%

Current Monthly Distribution per Common Share3

 

$0.086

Current Annualized Distribution per Common Share3

 

$1.032

Leverage as of April 30, 20104

 

36%





 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

3

The distribution is not constant and is subject to change.

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/10

 

4/30/09

 

Change

 

High

 

Low

 













Market Price

 

 

$

15.70

 

 

 

$

11.97

 

 

 

 

31.16

%

 

 

$

15.90

 

 

 

$

11.88

 

 

Net Asset Value

 

 

$

15.75

 

 

 

$

13.27

 

 

 

 

18.69

%

 

 

$

15.84

 

 

 

$

13.27

 

 




























The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







Health

 

23

%

 

19

%

 

Corporate

 

14

 

 

15

 

 

State

 

12

 

 

10

 

 

County/City/Special District/School District

 

11

 

 

13

 

 

Transportation

 

11

 

 

11

 

 

Utilities

 

11

 

 

10

 

 

Education

 

9

 

 

9

 

 

Housing

 

7

 

 

9

 

 

Tobacco

 

2

 

 

4

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







AAA/Aaa

 

19

%

 

29

%

 

AA/Aa

 

32

 

 

21

 

 

A

 

23

 

 

24

 

 

BBB/Baa

 

11

 

 

10

 

 

BB/Ba

 

2

 

 

2

 

 

B

 

2

 

 

1

 

 

CCC/Caa

 

2

 

 

2

 

 

Not Rated6

 

9

 

 

11

 

 










 

 

5

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

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of April 30, 2010 and April 30, 2009, the market value of these securities was $2,973,600 representing 1% and $6,532,075 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 




ANNUAL REPORT

APRIL 30, 2010

7




 

 


 

 

Fund Summary as of April 30, 2010

BlackRock MuniHoldings Fund II, Inc.


 


Investment Objective


BlackRock MuniHoldings Fund II, Inc. (MUH) (the “Fund”) seeks to provide shareholders with current income exempt from federal income taxes by investing primarily in a portfolio of long-term, investment grade municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes.

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

 


Performance


For the 12 months ended April 30, 2010, the Fund returned 38.64% based on market price and 25.71% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 28.13% on a market price basis and 22.67% on a NAV basis. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. Positive performance was attributable in part to sector allocation decisions and included concentrations in health care, housing, county/city/special district/school district and corporate-related debt, which all performed well. Increasing risk appetite has also proven beneficial given the portfolio’s focus on lower-rated credits. Additionally, portfolio positioning with respect to a modestly long duration stance and an emphasis on longer-dated bonds was additive in an environment where yields on the long end of the curve fell substantially. Negative factors included underweight positioning in the tax-backed, public utilities and tobacco sectors, portions of which have performed well on a relative basis.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information


 

 

 

Symbol on NYSE

 

MUH

Initial Offering Date

 

February 27, 1998

Yield on Closing Market Price as of April 30, 2010 ($14.68)1

 

6.58%

Tax Equivalent Yield2

 

10.12%

Current Monthly Distribution per Common Share3

 

$0.0805

Current Annualized Distribution per Common Share3

 

$0.9660

Leverage as of April 30, 20104

 

35%





 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

3

The distribution is not constant and is subject to change.

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/10

 

4/30/09

 

Change

 

High

 

Low

 













Market Price

 

 

$

14.68

 

 

 

$

11.33

 

 

29.57

%

 

 

$

14.69

 

 

 

$

11.27

 

 

Net Asset Value

 

 

$

14.65

 

 

 

$

12.47

 

 

17.48

%

 

 

$

14.72

 

 

 

$

12.46

 

 


























The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







Health

 

21

%

 

18

%

 

County/City/Special District/School District

 

15

 

 

16

 

 

Corporate

 

15

 

 

11

 

 

State

 

12

 

 

10

 

 

Education

 

10

 

 

11

 

 

Transportation

 

10

 

 

13

 

 

Utilities

 

8

 

 

9

 

 

Housing

 

7

 

 

8

 

 

Tobacco

 

2

 

 

4

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







AAA/Aaa

 

18

%

 

26

%

 

AA/Aa

 

37

 

 

26

 

 

A

 

20

 

 

25

 

 

BBB/Baa

 

12

 

 

10

 

 

BB/Ba

 

2

 

 

1

 

 

B

 

1

 

 

2

 

 

CCC/Caa

 

2

 

 

1

 

 

Not Rated6

 

8

 

 

9

 

 










 

 

5

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

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2010 and April 30, 2009, the market value of these securities was $4,406,945 representing 2% and $4,974,331 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 




8

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Fund Summary as of April 30, 2010

BlackRock MuniHoldings Insured Fund, Inc.


 


Investment Objective


BlackRock MuniHoldings Insured Fund, Inc. (MUS) (the “Fund”) seeks to provide shareholders with current income exempt from federal income taxes by investing primarily in a portfolio of long-term, investment grade municipal obligations the interest on which, in the opinion of bond counsel to the issuers, is exempt from federal income taxes. Under normal circumstances, the Fund invests at least 80% of its total assets in municipal bonds that are covered by insurance.

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

 


Performance


For the 12 months ended April 30, 2010, the Fund returned 31.59% based on market price and 16.05% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 24.79% on a market price basis and 15.40% on a NAV basis. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. Notable positions in health care and housing bonds enhanced the Fund’s performance for the period. In both sectors, the maturity range of the Fund’s holdings was 20 years and longer, and they subsequently benefited from the flattening of the yield curve during the past 12 months. Conversely, the Fund’s insured holdings, with weak underlying credits, detracted from performance for the period.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information



 

 

 

Symbol on NYSE

 

MUS

Initial Offering Date

 

May 1, 1998

Yield on Closing Market Price as of April 30, 2010 ($13.40)1

 

6.63%

Tax Equivalent Yield2

 

10.20%

Current Monthly Distribution per Common Share3

 

$0.074

Current Annualized Distribution per Common Share3

 

$0.888

Leverage as of April 30, 20104

 

41%





 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

3

The distribution is not constant and is subject to change.

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/10

 

4/30/09

 

Change

 

High

 

Low

 













Market Price

 

 

$

13.40

 

 

 

$

10.87

 

 

23.28

%

 

 

$

13.80

 

 

 

$

10.73

 

 

Net Asset Value

 

 

$

13.34

 

 

 

$

12.27

 

 

8.72

%

 

 

$

13.81

 

 

 

$

11.98

 

 


























The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







County/City/Special District/School District

 

33

%

 

42

%

 

Utilities

 

22

 

 

14

 

 

Transportation

 

16

 

 

17

 

 

State

 

13

 

 

12

 

 

Health

 

9

 

 

7

 

 

Housing

 

5

 

 

6

 

 

Corporate

 

2

 

 

2

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







AAA/Aaa

 

58

%

 

50

%

 

AA/Aa

 

16

 

 

39

 

 

A

 

24

 

 

6

 

 

BBB/Baa

 

1

 

 

4

 

 

Not Rated6

 

1

 

 

1

 

 










 

 

5

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

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2010 and April 30, 2009, the market value of these securities was $2,342,435 representing 1% and $3,333,138 representing 1%, respectively, of the Fund’s long-term investments.


 

 

 




ANNUAL REPORT

APRIL 30, 2010

9




 

 


 

 

Fund Summary as of April 30, 2010

BlackRock Muni Intermediate Duration Fund, Inc.


 


Investment Objective


BlackRock Muni Intermediate Duration Fund, Inc. (MUI) (the “Fund”) seeks to provide shareholders with high current income exempt from federal income taxes by investing primarily in a portfolio of municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes.

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

 


Performance


For the 12 months ended April 30, 2010, the Fund returned 27.29% based on market price and 19.85% based on NAV. For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 22.05% on a market price basis and 15.50% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The Fund benefited from a tightening of credit spreads, specifically within the corporate high yield sector, which helped the Fund’s lower-quality holdings outperform. In addition, we actively structured new-issue deals with discounted coupons at the longer end of the Fund’s duration range. These holdings benefited from the outperformance of the new-issue market, the flattening of the yield curve and the reduced supply of tax-exempt issuance due to Build America Bonds (BAB) issuance. We also diversified the Fund’s holdings to increase exposure to specialty-state paper, which outperformed as a result of increased demand by retail buyers. Finally, the Fund benefited from an above-average yield relative to its Lipper group peers. Conversely, the Funds’ shorter maturity holdings, as well as its bonds with greater negative convexity, underperformed the market.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information



 

 

 

 

 

Symbol on NYSE

 

 

MUI

 

Initial Offering Date

 

 

August 1, 2003

 

Yield on Closing Market Price as of April 30, 2010 ($14.13)1

 

 

5.56%

 

Tax Equivalent Yield2

 

 

8.55%

 

Current Monthly Distribution per Common Share3

 

 

$0.0655

 

Current Annualized Distribution per Common Share3

 

 

$0.7860

 

Leverage as of April 30, 20104

 

 

38%

 







 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

3

The Monthly Distribution per Common Share, declared on June 1, 2010, was increased to $0.0680. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


























 

 

4/30/10

 

4/30/09

 

Change

 

High

 

Low

 













Market Price

 

 

$

14.13

 

 

 

$

11.77

 

 

20.05

%

 

 

$

14.27

 

 

 

$

11.51

 

 

Net Asset Value

 

 

$

14.75

 

 

 

$

13.05

 

 

13.03

%

 

 

$

14.79

 

 

 

$

13.01

 

 


























The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







State

 

23

%

 

23

%

 

City/County/Special District/School District

 

21

 

 

25

 

 

Corporate

 

12

 

 

11

 

 

Health

 

12

 

 

10

 

 

Transportation

 

8

 

 

13

 

 

Utilities

 

8

 

 

7

 

 

Education

 

6

 

 

2

 

 

Tobacco

 

6

 

 

6

 

 

Housing

 

4

 

 

3

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/10

 

4/30/09

 







AAA/Aaa

 

28

%

 

36

%

 

AA/Aa

 

25

 

 

30

 

 

A

 

23

 

 

11

 

 

BBB/Baa

 

11

 

 

12

 

 

BB/Ba

 

1

 

 

 

 

B

 

2

 

 

1

 

 

CCC/Caa

 

3

 

 

1

 

 

Not Rated6

 

7

 

 

9

 

 










 

 

5

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

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2010 and April 30, 2009, the market value of these securities was $11,900,188 representing 1% and $16,548,864 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 




10

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Fund Summary as of April 30, 2010

BlackRock MuniVest Fund II, Inc.


 


Investment Objective


BlackRock MuniVest Fund II, Inc. (MVT) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term, investment grade municipal obligations, the interest on which, in the opinion of bond counsel to the issuers, is exempt from federal income taxes.

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

 


Performance


For the 12 months ended April 30, 2010, the Fund returned 37.99% based on market price and 29.75% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 28.13% on a market price basis and 22.67% on a NAV basis. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. Positive performance was attributable in part to sector allocation decisions and included concentrations in health care, housing, development districts and corporate-related debt, which all performed well. Increasing risk appetite has also proven beneficial given the portfolio’s focus on lower-rated credits. Additionally, portfolio positioning with respect to a modestly long duration stance and an emphasis on longer-dated bonds was additive in an environment where yields on the long end of the curve fell substantially. Negative factors included underweight positioning in the tax-backed, public utilities and education sectors, all of which have performed well on a relative basis.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 


Fund Information



 

 

 

 

 

Symbol on NYSE

 

 

MVT

 

Initial Offering Date

 

 

March 29, 1993

 

Yield on Closing Market Price as of April 30, 2010 ($14.94)1

 

 

6.91%

 

Tax Equivalent Yield2

 

 

10.63%

 

Current Monthly Distribution per Common Share3

 

 

$0.086

 

Current Annualized Distribution per Common Share3

 

 

$1.032

 

Leverage as of April 30, 20104

 

 

40%

 







 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

3

The distribution is not constant and is subject to change.

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 12.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/10

 

4/30/09

 

Change

 

High

 

Low

 













Market Price

 

 

$

14.94

 

 

 

$

11.65

 

 

28.24

%

 

 

$

14.94

 

 

 

$

11.54

 

 

Net Asset Value

 

 

$

14.41

 

 

 

$

11.95

 

 

20.59

%

 

 

$

14.55

 

 

 

$

11.94

 

 


























The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 







 

 

4/30/10

 

4/30/09

 







Health

 

22

%

 

18

%

 

Corporate

 

18

 

 

16

 

 

State

 

14

 

 

14

 

 

Transportation

 

12

 

 

13

 

 

County/City/Special District/School District

 

10

 

 

13

 

 

Utilities

 

10

 

 

11

 

 

Education

 

6

 

 

6

 

 

Housing

 

5

 

 

5

 

 

Tobacco

 

3

 

 

4

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 









 

 

4/30/10

 

4/30/09

 







AAA/Aaa

 

18

%

 

26

%

 

AA/Aa

 

39

 

 

28

 

 

A

 

18

 

 

18

 

 

BBB/Baa

 

11

 

 

12

 

 

BB/Ba

 

 

 

1

 

 

B

 

3

 

 

2

 

 

CCC/Caa

 

1

 

 

 

 

Not Rated6

 

10

 

 

13

 

 










 

 

5

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

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2010 and April 30, 2009, the market value of these securities was $5,505,082 representing 1% and $10,825,769 representing 3%, respectively, of the Fund’s long-term investments.


 

 

 




ANNUAL REPORT

APRIL 30, 2010

11




 


 

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, all of the Funds, except APX and MUA, issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the cost of assets to be obtained from leverage will be based on short-term interest rates, which normally will be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s Common Shareholders will benefit from the incremental net income.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Fund with assets received from the Preferred Shares issuance earn the income based on long-term interest rates. In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the Fund’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup on the Common Shares will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Fund pays dividends on the higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of a Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Funds’ Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAV positively or negatively in addition to the impact on Fund performance from leverage from Preferred Shares discussed above.

The Funds may also leverage their assets through the use of tender option bond (“TOB”) programs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Funds, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Fund’s NAV per share.

The use of leverage may enhance opportunities for increased income to the Funds and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Funds’ NAV, market price and dividend rate than a comparable portfolio without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Fund’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. The Funds may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Fund to incur losses. The use of leverage may limit each Fund’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by ratings agencies that rate preferred shares issued by the Funds. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, the Funds are permitted to issue Preferred Shares in an amount up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Fund anticipates that the total economic leverage from Preferred Shares and/or TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of April 30, 2010, the Funds had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 

 





 

 

Percent of
Leverage

 





APX

 

 

4

%

 

MUA

 

 

4

%

 

MEN

 

 

39

%

 

MHD

 

 

36

%

 

MUH

 

 

35

%

 

MUS

 

 

41

%

 

MUI

 

 

38

%

 

MVT

 

 

40

%

 








 


 

Derivative Financial Instruments

The Funds may invest in various derivative instruments, including financial futures contracts, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Such derivative instruments involve risks, including the imperfect correlation between the value of a derivative instrument and the underlying asset to the transaction or illiquidity of the derivative instrument. Each Fund’s ability to successfully use a derivative instrument depends on the investment advisor’s ability to accurately predict pertinent market movements, which cannot be assured. The use of derivative instruments may result in losses greater than if they had not been used, may require a Fund to sell or purchase portfolio securities at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment or may cause a Fund to hold a security that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

 

 

 




12

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Schedule of Investments April 30, 2010

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 0.4%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series A:

 

 

 

 

 

 

 

5.25%, 1/01/13

 

$

435

 

$

412,328

 

5.25%, 1/01/17

 

 

365

 

 

330,931

 

 

 

 

 

 




 

 

 

 

 

 

743,259

 









Alaska — 1.1%

 

 

 

 

 

 

 

Alaska Industrial Development & Export Authority, RB,
Williams Lynxs Alaska Cargoport, AMT, 8.00%,
5/01/23

 

 

2,000

 

 

1,925,240

 









Arizona — 4.1%

 

 

 

 

 

 

 

Maricopa County IDA Arizona, RB, Series A:

 

 

 

 

 

 

 

Arizona Charter Schools Project, 6.63%, 7/01/20

 

 

1,100

 

 

847,495

 

Sun King Apartments Project, 6.00%, 11/01/10

 

 

5

 

 

4,969

 

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

 

 

2,950

 

 

2,306,988

 

Pima County IDA, RB, Arizona Charter Schools Project,
Series E, 7.25%, 7/01/31

 

 

960

 

 

963,571

 

Pima County IDA, Refunding IDRB, Tucson Electric Power,
5.75%, 9/01/29

 

 

460

 

 

468,087

 

Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/32

 

 

1,950

 

 

1,768,533

 

University Medical Center Corp. Arizona, RB, 6.25%,
7/01/29

 

 

540

 

 

574,814

 

Yavapai County IDA Arizona, RB, Yavapai Regional
Medical Center, Series A, 6.00%, 8/01/33

 

 

500

 

 

502,870

 

 

 

 

 

 




 

 

 

 

 

 

7,437,327

 









California — 4.2%

 

 

 

 

 

 

 

California Statewide Communities Development Authority,
Refunding RB:

 

 

 

 

 

 

 

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

 

 

885

 

 

879,053

 

Senior Living, Southern California, 7.00%,
11/15/29

 

 

400

 

 

429,628

 

Senior Living, Southern California, 7.25%,
11/15/41

 

 

1,440

 

 

1,561,651

 

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

 

 

1,000

 

 

955,630

 

State of California, GO:

 

 

 

 

 

 

 

4.50%, 10/01/36

 

 

1,755

 

 

1,572,585

 

Various Purpose, 6.00%, 3/01/33

 

 

2,120

 

 

2,333,505

 

 

 

 

 

 




 

 

 

 

 

 

7,732,052

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Colorado — 2.8%

 

 

 

 

 

 

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee, Series A, 7.30%, 9/01/22

 

$

2,800

 

$

2,737,896

 

Plaza Metropolitan District No. 1 Colorado, Tax Allocation
Bonds, Tax Increment:

 

 

 

 

 

 

 

Public Improvement Fee, 8.00%, 12/01/25

 

 

2,000

 

 

2,002,240

 

Subordinate Public Improvement Fee, 8.13%,
12/01/25

 

 

500

 

 

476,880

 

 

 

 

 

 




 

 

 

 

 

 

5,217,016

 









Connecticut — 2.3%

 

 

 

 

 

 

 

Harbor Point Infrastructure Improvement District, Tax
Allocation Bonds, Harbor Point Project, Series A,
7.88%, 4/01/39

 

 

1,610

 

 

1,686,298

 

Mohegan Tribe of Indians of Connecticut, RB, Public
Improvement, Priority Distribution:

 

 

 

 

 

 

 

6.25%, 1/01/31

 

 

1,785

 

 

1,434,890

 

5.25%, 1/01/33 (a)

 

 

1,500

 

 

1,072,530

 

 

 

 

 

 




 

 

 

 

 

 

4,193,718

 









District of Columbia — 2.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

7.38%, 1/01/30

 

 

680

 

 

689,377

 

7.50%, 1/01/39

 

 

1,110

 

 

1,126,351

 

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

 

 

730

 

 

716,305

 

Metropolitan Washington Airports Authority, RB, CAB,
2nd Senior Lien, Series B (AGC), 6.75%, 10/01/39 (b)

 

 

9,770

 

 

1,691,871

 

 

 

 

 

 




 

 

 

 

 

 

4,223,904

 









Florida — 9.4%

 

 

 

 

 

 

 

Capital Region Community Development District Florida,
Special Assessment Bonds, Capital Improvement,
Series A, 7.00%, 5/01/39

 

 

630

 

 

590,852

 

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

 

 

360

 

 

364,136

 

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

 

 

 

 

 

 

 

Series A, 7.13%, 4/01/30

 

 

2,500

 

 

2,177,525

 

Series B, 7.13%, 4/01/30

 

 

1,560

 

 

1,358,776

 

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

 

 

900

 

 

695,916

 

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

 

 

840

 

 

856,876

 

Lee County IDA Florida, RB, Series A, Lee Charter
Foundation, 5.38%, 6/15/37

 

 

1,810

 

 

1,385,247

 


 


Portfolio Abbreviations


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

 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

EDC

Economic Development Corp.

ERB

Education Revenue Bonds

FGIC

Financial Guaranty Insurance Co.

FHA

Federal Housing Administration

GNMA

Government National Mortgage Association

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

HRB

Housing Revenue Bonds

HUD

US Department of Housing and

 

Urban Development

IDA

Industrial Development Authority

IDB

Industrial Development Board

IDRB

Industrial Development Revenue Bonds

ISD

Independent School District

M/F

Multi-Family

MRB

Mortgage Revenue Bonds

NPFGC

National Public Finance Guarantee Corp.

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

S/F

Single-Family

TE

Tax-Exempt


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

13




 

 


 

 

Schedule of Investments (continued)

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Florida (concluded)

 

 

 

 

 

 

 

Main Street Community Development District, Special
Assessment Bonds, Series B, 6.90%, 5/01/17

 

$

345

 

$

323,724

 

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

 

 

 

 

 

 

 

6.00%, 5/01/24

 

 

1,370

 

 

1,313,707

 

6.25%, 5/01/37

 

 

1,350

 

 

1,266,651

 

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

 

 

2,140

 

 

1,165,337

 

Sarasota County Health Facilities Authority, Refunding RB,
Village On The Isle Project:

 

 

 

 

 

 

 

5.50%, 1/01/27

 

 

590

 

 

536,003

 

5.50%, 1/01/32

 

 

550

 

 

487,652

 

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

 

 

1,615

 

 

1,264,222

 

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

 

 

1,905

 

 

1,905,152

 

Tolomato Community Development District, Special
Assessment Bonds, Special Assessment, 6.65%,
5/01/40

 

 

1,850

 

 

1,472,230

 

 

 

 

 

 




 

 

 

 

 

 

17,164,006

 









Georgia — 4.1%

 

 

 

 

 

 

 

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

 

 

395

 

 

346,731

 

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

 

 

1,375

 

 

1,466,877

 

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

 

 

1,640

 

 

1,558,836

 

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

 

 

1,805

 

 

1,805,505

 

Gainesville & Hall County Development Authority,
Refunding RB, Acts Retirement Life Community,
Series A-2, 6.63%, 11/15/39

 

 

645

 

 

670,142

 

Rockdale County Development Authority, RB, Visy Paper
Project, Series A, AMT, 6.13%, 1/01/34

 

 

1,680

 

 

1,549,330

 

Thomasville Hospital Authority, RB, Anticipation
Certificates, John D. Archbold, 5.38%, 11/01/40 (c)

 

 

210

 

 

208,289

 

 

 

 

 

 




 

 

 

 

 

 

7,605,710

 









Guam — 1.9%

 

 

 

 

 

 

 

Guam Government Waterworks Authority,
Refunding RB, Water:

 

 

 

 

 

 

 

6.00%, 7/01/25

 

 

515

 

 

526,170

 

5.88%, 7/01/35

 

 

800

 

 

784,776

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

250

 

 

258,803

 

6.75%, 11/15/29

 

 

440

 

 

467,966

 

7.00%, 11/15/39

 

 

455

 

 

485,867

 

Territory of Guam, RB, Section 30, Series A, 5.63%,
12/01/29

 

 

1,000

 

 

1,018,860

 

 

 

 

 

 




 

 

 

 

 

 

3,542,442

 









Illinois — 5.6%

 

 

 

 

 

 

 

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

 

 

2,860

 

 

2,124,694

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Clare at Water Tower Project, Series A, 6.13%,
5/15/38 (d)(e)

 

 

2,050

 

 

817,806

 

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

 

 

1,700

 

 

1,782,807

 

Rush University Medical Center Obligation Group,
Series A, 7.25%, 11/01/30

 

 

2,000

 

 

2,277,400

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Illinois (concluded)

 

 

 

 

 

 

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

$

1,630

 

$

1,617,465

 

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

 

 

490

 

 

435,968

 

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

 

 

755

 

 

609,783

 

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

 

 

750

 

 

684,383

 

 

 

 

 

 




 

 

 

 

 

 

10,350,306

 









Indiana — 1.7%

 

 

 

 

 

 

 

Indiana Finance Authority, Refunding RB, Improvement,
U.S. Steel Corp., 6.00%, 12/01/26 (c)

 

 

620

 

 

624,625

 

Indiana Health & Educational Facilities Financing
Authority, Refunding RB, Community Foundation
Northwest Indiana, 5.50%, 3/01/37

 

 

1,770

 

 

1,723,856

 

Vigo County Hospital Authority Indiana, RB, Union
Hospital Inc. (a):

 

 

 

 

 

 

 

5.70%, 9/01/37

 

 

440

 

 

382,167

 

5.75%, 9/01/42

 

 

545

 

 

466,716

 

 

 

 

 

 




 

 

 

 

 

 

3,197,364

 









Kentucky — 0.7%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System:

 

 

 

 

 

 

 

Series A, 6.38%, 6/01/40

 

 

645

 

 

663,060

 

Series B, 6.38%, 3/01/40

 

 

615

 

 

632,220

 

 

 

 

 

 




 

 

 

 

 

 

1,295,280

 









Louisiana — 1.1%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,056,640

 









Maryland — 1.2%

 

 

 

 

 

 

 

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

 

 

420

 

 

429,001

 

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

 

 

410

 

 

176,308

 

Maryland State Energy Financing Administration, RB,
Cogeneration, AES Warrior Run, AMT, 7.40%, 9/01/19

 

 

1,500

 

 

1,500,435

 

 

 

 

 

 




 

 

 

 

 

 

2,105,744

 









Massachusetts — 2.1%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB,
First Mortgage, Overlook Communities, Series A,
6.25%, 7/01/34

 

 

1,845

 

 

1,584,597

 

Massachusetts Development Finance Agency, Refunding
RB, Eastern Nazarene College, 5.63%, 4/01/19

 

 

1,070

 

 

975,519

 

Massachusetts Health & Educational Facilities Authority,
RB, Jordan Hospital, Series E, 6.75%, 10/01/33

 

 

850

 

 

832,813

 

Massachusetts Health & Educational Facilities Authority,
Refunding RB, Milton Hospital, Series C, 5.50%,
7/01/16

 

 

500

 

 

444,240

 

 

 

 

 

 




 

 

 

 

 

 

3,837,169

 









Michigan — 2.7%

 

 

 

 

 

 

 

Advanced Technology Academy, RB, 6.00%, 11/01/37

 

 

625

 

 

558,200

 

County of Wayne Michigan, GO, Building Improvement,
Series A, 6.75%, 11/01/39

 

 

375

 

 

395,531

 

Monroe County Hospital Finance Authority, Refunding RB,
Mercy Memorial Hospital Corp. Obligation, 5.50%,
6/01/35

 

 

1,260

 

 

1,037,975

 

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

 

 

2,575

 

 

3,039,350

 

 

 

 

 

 




 

 

 

 

 

 

5,031,056

 










 

 

 

See Notes to Financial Statements.

 




14

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Missouri — 1.0%

 

 

 

 

 

 

 

Kansas City IDA Missouri, RB, First Mortgage, Bishop
Spencer, Series A, 6.50%, 1/01/35

 

$

1,000

 

$

887,200

 

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

 

 

945

 

 

940,814

 

 

 

 

 

 




 

 

 

 

 

 

1,828,014

 









Multi-State — 0.3%

 

 

 

 

 

 

 

MuniMae TE Bond Subsidiary LLC, 7.50%,
6/30/49 (a)(f)(g)

 

 

672

 

 

623,477

 









Nevada — 0.2%

 

 

 

 

 

 

 

County of Clark Nevada, Special Assessment Bonds,
Special Improvement District No. 142, Local
Improvement, 6.38%, 8/01/23

 

 

380

 

 

359,339

 









New Hampshire — 0.4%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
RB, Catholic Medical Center, 5.00%, 7/01/36

 

 

835

 

 

709,825

 









New Jersey — 6.8%

 

 

 

 

 

 

 

New Jersey EDA, RB, Continental Airlines Inc. Project, AMT:

 

 

 

 

 

 

 

6.63%, 9/15/12

 

 

3,050

 

 

3,081,537

 

6.25%, 9/15/29

 

 

1,000

 

 

938,100

 

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

 

 

1,500

 

 

1,501,920

 

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

 

 

 

 

 

 

 

7.13%, 12/01/23

 

 

670

 

 

774,078

 

7.50%, 12/01/32

 

 

1,065

 

 

1,219,755

 

New Jersey Health Care Facilities Financing Authority, RB,
Pascack Valley Hospital Association, 6.63%,
7/01/36 (d)(e)

 

 

1,870

 

 

19

 

New Jersey Health Care Facilities Financing Authority,
Refunding RB, St. Joseph’s Healthcare System,
6.63%, 7/01/38

 

 

1,680

 

 

1,722,873

 

New Jersey Transportation Trust Fund Authority, RB, CAB,
Transportation System, Series C (AMBAC), 5.05%,
12/15/35 (b)

 

 

2,760

 

 

591,827

 

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

 

 

 

 

 

 

 

4.50%, 6/01/23

 

 

2,050

 

 

1,958,037

 

5.00%, 6/01/41

 

 

860

 

 

594,681

 

 

 

 

 

 




 

 

 

 

 

 

12,382,827

 









New York — 6.1%

 

 

 

 

 

 

 

Brooklyn Arena Local Development Corp., RB, Barclays
Center Project, 6.38%, 7/15/43

 

 

685

 

 

701,591

 

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

 

 

1,710

 

 

1,738,506

 

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

 

 

1,000

 

 

993,870

 

Metropolitan Transportation Authority, RB, Series 2008-C,
6.50%, 11/15/28

 

 

2,000

 

 

2,322,580

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

American Airlines Inc., JFK International Airport,
AMT, 8.00%, 8/01/28

 

 

720

 

 

750,146

 

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

 

 

1,730

 

 

1,710,555

 

Series C, 6.80%, 6/01/28

 

 

350

 

 

367,993

 

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

 

 

830

 

 

771,178

 

New York Liberty Development Corp., RB, National Sports
Museum Project, Series A, 6.13%, 2/15/19 (d)(e)

 

 

630

 

 

6

 

New York State Dormitory Authority, RB, North Shore-Long
Island Jewish Health System, Series A, 5.50%, 5/01/37

 

 

1,000

 

 

1,024,960

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 




 


 

New York (concluded)

 

 

 

 

 

 

 

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

 

$

850

 

$

886,193

 

 

 

 

 

 




 

 

 

 

 

 

11,267,578

 









North Carolina — 1.8%

 

 

 

 

 

 

 

North Carolina Medical Care Commission, Refunding RB,
First Mortgage, Deerfield, Series A, 6.13%, 11/01/38

 

 

3,230

 

 

3,206,324

 









Ohio — 1.8%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.13%, 6/01/24

 

 

1,120

 

 

1,030,635

 

6.50%, 6/01/47

 

 

2,685

 

 

2,203,419

 

 

 

 

 

 




 

 

 

 

 

 

3,234,054

 









Pennsylvania — 6.9%

 

 

 

 

 

 

 

Allegheny County Hospital Development Authority,
Refunding RB, Health System, West Penn, Series A,
5.38%, 11/15/40

 

 

2,385

 

 

1,914,034

 

Bucks County IDA, RB, Ann’s Choice Inc. Facility,
Series A, 6.13%, 1/01/25

 

 

1,160

 

 

1,098,184

 

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

 

 

2,510

 

 

2,528,800

 

Lancaster County Hospital Authority, RB, Brethren
Village Project, Series A:

 

 

 

 

 

 

 

6.25%, 7/01/26

 

 

475

 

 

474,468

 

6.50%, 7/01/40

 

 

410

 

 

397,839

 

Montgomery County IDA Pennsylvania, MRB, Whitemarsh
Continuing Care, 6.25%, 2/01/35

 

 

1,700

 

 

1,260,176

 

Pennsylvania Higher Educational Facilities Authority,
Refunding RB, Allegheny Delaware Valley Obligation,
Series A (NPFGC), 5.88%, 11/15/21

 

 

470

 

 

453,400

 

Philadelphia Authority for Industrial Development,
RB, AMT:

 

 

 

 

 

 

 

Commercial Development, 7.75%, 12/01/17

 

 

3,000

 

 

3,003,270

 

Subordinate, Air Cargo, Series A, 7.50%, 1/01/25

 

 

1,600

 

 

1,524,768

 

 

 

 

 

 




 

 

 

 

 

 

12,654,939

 









Puerto Rico — 1.2%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority, Refunding RB,
Series Q, 5.63%, 7/01/39

 

 

985

 

 

1,005,784

 

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

 

 

1,000

 

 

1,129,710

 

 

 

 

 

 




 

 

 

 

 

 

2,135,494

 









Rhode Island — 0.8%

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,501,518

 









South Carolina — 0.5%

 

 

 

 

 

 

 

Connector 2000 Association Inc., RB, CAB, Senior
Series B, 9.86%, 1/01/14 (b)(d)(e)

 

 

1,075

 

 

177,375

 

South Carolina Jobs, EDA, Refunding RB, Palmetto
Health, 5.50%, 8/01/26

 

 

670

 

 

664,821

 

 

 

 

 

 




 

 

 

 

 

 

842,196

 









Tennessee — 0.1%

 

 

 

 

 

 

 

Shelby County Health Educational & Housing Facilities
Board, RB, Village at Germantown, 6.25%, 12/01/34

 

 

245

 

 

209,012

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

15




 

 


 

 

Schedule of Investments (continued)

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Texas — 10.1%

 

 

 

 

 

 

 

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

 

$

2,055

 

$

2,074,831

 

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

 

 

2,530

 

 

1,506,615

 

Central Texas Regional Mobility Authority, RB:

 

 

 

 

 

 

 

CAB, 7.48%, 1/01/28 (b)

 

 

1,000

 

 

282,670

 

CAB, 7.78%, 1/01/33 (b)

 

 

2,150

 

 

410,435

 

CAB, 7.79%, 1/01/34 (b)

 

 

4,000

 

 

708,200

 

Senior Lien, 5.75%, 1/01/25

 

 

450

 

 

454,612

 

City of Houston Texas, RB, Special Facilities, Continental
Airlines, Series E, AMT, 6.75%, 7/01/21

 

 

1,865

 

 

1,858,566

 

Danbury Higher Education Authority Inc., RB, A.W. Brown
Fellowship Charter, Series A (ACA), 5.13%, 8/15/36

 

 

1,000

 

 

1,133,290

 

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

 

 

1,110

 

 

1,251,159

 

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

 

 

850

 

 

920,142

 

North Texas Tollway Authority, RB, Toll, 2nd Tier, Series F,
6.13%, 1/01/31

 

 

1,650

 

 

1,759,791

 

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

 

 

 

 

 

 

 

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

 

 

710

 

 

702,218

 

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

 

 

1,710

 

 

1,692,541

 

Texas Private Activity Bond Surface Transportation Corp.,
RB, Senior Lien, Note Mobility, 6.88%, 12/31/39

 

 

1,605

 

 

1,676,776

 

Texas State Public Finance Authority, Refunding ERB,
KIPP Inc., Series A (ACA), 5.00%, 2/15/28

 

 

2,250

 

 

2,068,065

 

 

 

 

 

 




 

 

 

 

 

 

18,499,911

 









U.S. Virgin Islands — 1.3%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21

 

 

2,100

 

 

2,127,384

 

Virgin Islands Public Finance Authority, RB, Senior Lien,
Capital Projects, Series A-1, 5.00%, 10/01/39

 

 

340

 

 

321,966

 

 

 

 

 

 




 

 

 

 

 

 

2,449,350

 









Utah — 1.2%

 

 

 

 

 

 

 

County of Carbon Utah, Refunding RB, Laidlaw
Environmental, Series A, AMT, 7.45%, 7/01/17

 

 

2,240

 

 

2,244,368

 









Virginia — 2.7%

 

 

 

 

 

 

 

Dulles Town Center Community Development Authority,
Special Assessment Bonds, Dulles Town Center Project,
6.25%, 3/01/26

 

 

2,330

 

 

2,206,627

 

Tobacco Settlement Financing Corp. Virginia, Refunding
RB, Senior Series B1, 5.00%, 6/01/47

 

 

4,040

 

 

2,780,853

 

 

 

 

 

 




 

 

 

 

 

 

4,987,480

 









Wisconsin — 2.2%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

New Castle Place Project, Series A, 7.00%,
12/01/31

 

 

1,320

 

 

1,270,262

 

Wheaton Franciscan Healthcare, 5.25%, 8/15/34

 

 

2,540

 

 

2,303,805

 

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

 

 

 

 

 

 

 

7.25%, 9/15/29

 

 

175

 

 

178,980

 

7.63%, 9/15/39

 

 

350

 

 

363,157

 

 

 

 

 

 




 

 

 

 

 

 

4,116,204

 









Wyoming — 1.3%

 

 

 

 

 

 

 

County of Sweetwater Wyoming, Refunding RB, FMC Corp.
Project, AMT, 5.60%, 12/01/35

 

 

2,500

 

 

2,401,450

 









Total Municipal Bonds — 94.4%

 

 

 

 

 

173,311,593

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

Par
(000)

 

Value

 









District of Columbia — 1.7%

 

 

 

 

 

 

 

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

 

$

2,730

 

$

3,075,819

 









Florida — 3.3%

 

 

 

 

 

 

 

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

 

 

6,130

 

 

6,113,326

 









Virginia — 3.1%

 

 

 

 

 

 

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.38%,
7/01/36

 

 

5,710

 

 

5,753,624

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 8.1%

 

 

 

 

 

14,942,769

 









Total Long-Term Investments
(Cost — $191,036,266) — 102.5%

 

 

 

 

 

188,254,362

 









 

 

 

 

 

 

 

 


 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.25% (i)(j)

 

 

648,958

 

 

648,958

 









Total Short-Term Securities
(Cost — $648,958) — 0.4%

 

 

 

 

 

648,958

 









Total Investments (Cost — $191,685,224*) — 102.9%

 

 

 

 

 

188,903,320

 

Other Assets Less Liabilities — 1.1%

 

 

 

 

 

2,009,210

 

Liability for Trust Certificates, Including

 

 

 

 

 

 

 

Interest Expense and Fees Payable — (4.0)%

 

 

 

 

 

(7,290,410

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

183,622,120

 

 

 

 

 

 





 

 


*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

183,704,275

 

 

 




Gross unrealized appreciation

 

$

9,676,376

 

Gross unrealized depreciation

 

 

(11,762,777

)

 

 




Net unrealized depreciation

 

$

(2,086,401

)

 

 





 

 

(a)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(b)

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

 

 

(c)

When-issued security. Net unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 







Counterparty

 

Value

Unrealized
Appreciation







BB&T Capital Markets

 

$

208,289

 

$

313

 

Morgan Stanley Capital Services, Inc.

 

$

624,625

 

$

4,625

 

Raymond C. Forbes

 

$

1,805,505

 

$

31,226

 










 

 

(d)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(e)

Non-income producing security.

 

 

(f)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

 

(g)

Variable rate security. Rate shown is as of report date.


 

 

 

See Notes to Financial Statements.

 




16

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Schedule of Investments (concluded)

BlackRock Apex Municipal Fund, Inc. (APX)


 

 

(h)

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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(i)

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Affiliate

 

Shares
Held at
April 30,
2009

 

Net
Activity

 

Shares
Held at
April 30,
2010

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

100,006

 

 

548,952

 

 

648,958

 

$

2,997

 












 

 

 

(j)

Represents the current yield as of report date.

 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including,but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

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

 

 

 

 

The inputs or methodologies 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 Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of April 30, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 





 

 

Investments in Securities

 





Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

188,254,362

 

 

 

$

188,254,362

 

Short-Term Securities

 

$

648,958

 

 

 

 

 

 

648,958

 

 

 













Total

 

$

648,958

 

$

188,254,362

 

 

 

$

188,903,320

 

 

 














 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2010

17




 

 


 

 

Schedule of Investments April 30, 2010

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 0.4%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series A:

 

 

 

 

 

 

 

5.25%, 1/01/13

 

$

635

 

$

601,904

 

5.25%, 1/01/17

 

 

530

 

 

480,530

 

 

 

 

 

 




 

 

 

 

 

 

1,082,434

 









Alaska — 0.1%

 

 

 

 

 

 

 

Alaska Industrial Development & Export Authority, RB,
Williams Lynxs Alaska Cargoport, AMT, 7.80%, 5/01/14

 

 

395

 

 

389,462

 









Arizona — 6.3%

 

 

 

 

 

 

 

Coconino County Pollution Control Corp. Arizona,
Refunding RB, Tucson Electric Power-Navajo, Series A,
AMT, 7.13%, 10/01/32

 

 

3,000

 

 

3,001,380

 

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

 

 

1,625

 

 

1,251,981

 

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

 

 

4,800

 

 

3,753,744

 

Pima County IDA, RB, Arizona Charter Schools Project,
Series E, 7.25%, 7/01/31

 

 

1,375

 

 

1,380,115

 

Pima County IDA, Refunding IDRB, Tucson Electric Power,
5.75%, 9/01/29

 

 

670

 

 

681,779

 

Pima County IDA, Refunding RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project, Series O, 5.25%,
7/01/31

 

 

500

 

 

398,950

 

Charter Schools II, Series A, 6.75%, 7/01/31

 

 

670

 

 

646,195

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

2,840

 

 

2,575,709

 

5.00%, 12/01/37

 

 

1,850

 

 

1,640,487

 

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

 

 

745

 

 

745,477

 

University Medical Center Corp. Arizona, RB:

 

 

 

 

 

 

 

6.25%, 7/01/29

 

 

280

 

 

298,052

 

6.50%, 7/01/39

 

 

500

 

 

532,990

 

 

 

 

 

 




 

 

 

 

 

 

16,906,859

 









California — 4.4%

 

 

 

 

 

 

 

California Health Facilities Financing Authority, RB,
Cedars-Sinai Medical Center, 5.00%, 8/15/39

 

 

640

 

 

618,938

 

California Statewide Communities Development Authority,
Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,290

 

 

1,281,331

 

Senior Living, Southern California, 7.00%,
11/15/29

 

 

600

 

 

644,442

 

Senior Living, Southern California, 7.25%,
11/15/41

 

 

2,060

 

 

2,234,029

 

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

 

 

1,320

 

 

1,261,432

 

State of California, GO:

 

 

 

 

 

 

 

4.50%, 10/01/36

 

 

2,555

 

 

2,289,433

 

Various Purpose, 6.00%, 3/01/33

 

 

3,075

 

 

3,384,683

 

 

 

 

 

 




 

 

 

 

 

 

11,714,288

 









Colorado — 2.6%

 

 

 

 

 

 

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee:

 

 

 

 

 

 

 

Series A, 7.10%, 9/01/14

 

 

1,395

 

 

1,424,532

 

Series A, 7.30%, 9/01/22

 

 

2,095

 

 

2,048,533

 

Series B, 7.45%, 9/01/31

 

 

200

 

 

186,542

 

Plaza Metropolitan District No. 1 Colorado,
Tax Allocation Bonds, Tax Increment:

 

 

 

 

 

 

 

Public Improvement Fee, 8.00%,
12/01/25

 

 

2,850

 

 

2,853,192

 

Subordinate Public Improvement Fee,
8.13%, 12/01/25

 

 

525

 

 

500,724

 

 

 

 

 

 




 

 

 

 

 

 

7,013,523

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Connecticut — 2.9%

 

 

 

 

 

 

 

Connecticut State Development Authority, RB, AFCO
Cargo BDL LLC Project, AMT, 8.00%, 4/01/30

 

$

3,490

 

$

3,297,945

 

Harbor Point Infrastructure Improvement District,
Tax Allocation Bonds, Harbor Point Project, Series A,
7.88%, 4/01/39

 

 

2,340

 

 

2,450,893

 

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

 

 

2,610

 

 

2,098,075

 

 

 

 

 

 




 

 

 

 

 

 

7,846,913

 









District of Columbia — 2.2%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

7.38%, 1/01/30

 

 

985

 

 

998,583

 

7.50%, 1/01/39

 

 

1,615

 

 

1,638,789

 

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

 

 

1,055

 

 

1,035,208

 

Metropolitan Washington Airports Authority, RB, CAB,
2nd Senior Lien, Series B (AGC), 6.54%, 10/01/30 (a)

 

 

7,000

 

 

2,126,810

 

 

 

 

 

 




 

 

 

 

 

 

5,799,390

 









Florida — 9.0%

 

 

 

 

 

 

 

Capital Region Community Development District Florida,
Special Assessment Bonds, Capital Improvement,
Series A, 7.00%, 5/01/39

 

 

945

 

 

886,278

 

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

 

 

705

 

 

713,100

 

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

 

 

1,180

 

 

1,102,887

 

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

 

 

455

 

 

455,332

 

Hillsborough County IDA, RB:

 

 

 

 

 

 

 

National Gypsum Co., Series A, AMT, 7.13%,
4/01/30

 

 

2,000

 

 

1,742,020

 

National Gypsum Co., Series B, AMT, 7.13%,
4/01/30

 

 

1,540

 

 

1,341,355

 

Tampa General Hospital Project, 5.00%, 10/01/36

 

 

2,670

 

 

2,492,071

 

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

 

 

1,300

 

 

1,005,212

 

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

 

 

850

 

 

867,077

 

Lee County IDA Florida, RB, Series A, Lee Charter
Foundation, 5.38%, 6/15/37

 

 

2,620

 

 

2,005,165

 

Main Street Community Development District, Special
Assessment Bonds, Series B, 6.90%, 5/01/17

 

 

500

 

 

469,165

 

Midtown Miami Community Development District,
Special Assessment Bonds, Series A, 6.25%, 5/01/37

 

 

3,255

 

 

3,054,036

 

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

 

 

3,040

 

 

1,655,432

 

Sarasota County Health Facilities Authority, Refunding RB,
Village On The Isle Project:

 

 

 

 

 

 

 

5.50%, 1/01/27

 

 

860

 

 

781,293

 

5.50%, 1/01/32

 

 

795

 

 

704,879

 

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

 

 

695

 

 

720,374

 

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

 

 

2,380

 

 

1,863,064

 

Tolomato Community Development District, Special
Assessment Bonds, Special Assessment, 6.65%,
5/01/40

 

 

2,680

 

 

2,132,744

 

 

 

 

 

 




 

 

 

 

 

 

23,991,484

 










 

 

 

See Notes to Financial Statements.

 




18

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Georgia — 4.2%

 

 

 

 

 

 

 

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

 

$

640

 

$

561,792

 

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

 

 

1,990

 

 

2,122,972

 

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

 

 

2,375

 

 

2,257,461

 

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

 

 

2,625

 

 

2,625,735

 

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

 

 

 

 

 

 

 

6.38%, 11/15/29

 

 

700

 

 

727,076

 

6.63%, 11/15/39

 

 

235

 

 

244,160

 

Rockdale County Development Authority, RB, Visy Paper
Project, Series A, AMT, 6.13%, 1/01/34

 

 

2,435

 

 

2,245,606

 

Thomasville Hospital Authority, RB, Anticipation
Certificates, John D. Archbold, 5.38%, 11/01/40 (b)

 

 

300

 

 

297,555

 

 

 

 

 

 




 

 

 

 

 

 

11,082,357

 









Guam — 1.9%

 

 

 

 

 

 

 

Guam Government Waterworks Authority,
Refunding RB, Water:

 

 

 

 

 

 

 

6.00%, 7/01/25

 

 

750

 

 

766,267

 

5.88%, 7/01/35

 

 

1,150

 

 

1,128,115

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

365

 

 

377,852

 

6.75%, 11/15/29

 

 

635

 

 

675,361

 

7.00%, 11/15/39

 

 

660

 

 

704,774

 

Territory of Guam, RB, Section 30, Series A, 5.63%,
12/01/29

 

 

1,460

 

 

1,487,536

 

 

 

 

 

 




 

 

 

 

 

 

5,139,905

 









Illinois — 4.8%

 

 

 

 

 

 

 

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

 

 

4,140

 

 

3,075,606

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Clare at Water Tower Project, Series A, 6.13%,
5/15/38 (c)(d)

 

 

2,950

 

 

1,176,843

 

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

 

 

2,470

 

 

2,590,314

 

Rush University Medical Center Obligation Group,
Series B, 7.25%, 11/01/30

 

 

1,170

 

 

1,332,279

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

2,370

 

 

2,351,775

 

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

 

 

685

 

 

609,465

 

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

 

 

1,070

 

 

864,196

 

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

 

 

825

 

 

752,821

 

 

 

 

 

 




 

 

 

 

 

 

12,753,299

 









Indiana — 0.8%

 

 

 

 

 

 

 

Indiana Finance Authority, Refunding RB, Improvement,
U.S. Steel Corp., 6.00%, 12/01/26 (b)

 

 

900

 

 

906,714

 

Vigo County Hospital Authority Indiana, RB,
Union Hospital Inc.:

 

 

 

 

 

 

 

5.70%, 9/01/37

 

 

615

 

 

534,164

 

5.75%, 9/01/42

 

 

765

 

 

655,116

 

 

 

 

 

 




 

 

 

 

 

 

2,095,994

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Kentucky — 0.7%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System:

 

 

 

 

 

 

 

Series A, 6.38%, 6/01/40

 

$

935

 

$

961,180

 

Series B, 6.38%, 3/01/40

 

 

885

 

 

909,780

 

 

 

 

 

 




 

 

 

 

 

 

1,870,960

 









Louisiana — 1.2%

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,084,960

 









Maryland — 1.3%

 

 

 

 

 

 

 

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

 

 

615

 

 

628,179

 

Maryland EDC, Refunding RB, Health & Mental Hygiene
Program, Series A, 7.75%, 3/01/25

 

 

1,480

 

 

1,495,570

 

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

 

 

590

 

 

253,712

 

Maryland State Energy Financing Administration, RB,
Cogeneration, AES Warrior Run, AMT, 7.40%, 9/01/19

 

 

1,080

 

 

1,080,313

 

 

 

 

 

 




 

 

 

 

 

 

3,457,774

 









Massachusetts — 0.6%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, Refunding
RB, Eastern Nazarene College, 5.63%, 4/01/29

 

 

500

 

 

402,565

 

Massachusetts Health & Educational Facilities Authority,
RB, Jordan Hospital, Series E, 6.75%, 10/01/33

 

 

1,150

 

 

1,126,747

 

 

 

 

 

 




 

 

 

 

 

 

1,529,312

 









Michigan — 2.7%

 

 

 

 

 

 

 

Advanced Technology Academy, RB, 6.00%, 11/01/37

 

 

900

 

 

803,808

 

County of Wayne Michigan, GO, Building Improvement,
Series A, 6.75%, 11/01/39

 

 

545

 

 

574,839

 

Monroe County Hospital Finance Authority, Refunding RB,
Mercy Memorial Hospital Corp. Obligation, 5.50%,
6/01/35

 

 

1,740

 

 

1,433,395

 

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

 

 

3,735

 

 

4,408,532

 

 

 

 

 

 




 

 

 

 

 

 

7,220,574

 









Minnesota — 0.8%

 

 

 

 

 

 

 

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

 

 

1,785

 

 

1,992,078

 









Missouri — 0.8%

 

 

 

 

 

 

 

Kansas City IDA Missouri, RB, First Mortgage, Bishop
Spencer, Series A, 6.50%, 1/01/35

 

 

1,000

 

 

887,200

 

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

 

 

1,370

 

 

1,363,931

 

 

 

 

 

 




 

 

 

 

 

 

2,251,131

 









Multi-State — 0.3%

 

 

 

 

 

 

 

MuniMae TE Bond Subsidiary LLC, 7.50%,
6/30/49 (e)(f)(g)

 

 

960

 

 

890,681

 









Nevada — 0.2%

 

 

 

 

 

 

 

County of Clark Nevada, Special Assessment Bonds,
Special Improvement District No. 142, Local
Improvement, 6.38%, 8/01/23

 

 

610

 

 

576,834

 









New Hampshire — 0.4%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
RB, Catholic Medical Center, 5.00%, 7/01/36

 

 

1,165

 

 

990,355

 










 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2010

19




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New Jersey — 7.3%

 

 

 

 

 

 

 

New Jersey EDA, RB, Continental Airlines Inc.
Project, AMT:

 

 

 

 

 

 

 

6.25%, 9/15/19

 

$

2,000

 

$

1,921,780

 

6.40%, 9/15/23

 

 

1,000

 

 

959,630

 

6.25%, 9/15/29

 

 

3,330

 

 

3,123,873

 

9.00%, 6/01/33

 

 

1,250

 

 

1,315,862

 

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

 

 

2,500

 

 

2,503,200

 

New Jersey Educational Facilities Authority, Refunding RB,
University of Medicine & Dentistry, Series B, 7.50%,
12/01/32

 

 

2,510

 

 

2,874,728

 

New Jersey Health Care Facilities Financing Authority,
RB, Pascack Valley Hospital Association, 6.63%,
7/01/36 (c)(d)

 

 

2,000

 

 

20

 

New Jersey Health Care Facilities Financing Authority,
Refunding RB, St. Joseph’s Healthcare System, 6.63%,
7/01/38

 

 

2,410

 

 

2,471,503

 

New Jersey Transportation Trust Fund Authority, RB, CAB,
Transportation System, Series C (AMBAC), 5.05%,
12/15/35 (a)

 

 

3,450

 

 

739,784

 

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

 

 

 

 

 

 

 

4.50%, 6/01/23

 

 

2,950

 

 

2,817,663

 

5.00%, 6/01/41

 

 

1,250

 

 

864,363

 

 

 

 

 

 




 

 

 

 

 

 

19,592,406

 









New York — 6.0%

 

 

 

 

 

 

 

Brooklyn Arena Local Development Corp., RB, Barclays
Center Project, 6.38%, 7/15/43

 

 

1,000

 

 

1,024,220

 

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

 

 

2,485

 

 

2,526,425

 

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

 

 

1,400

 

 

1,391,418

 

Metropolitan Transportation Authority, RB, Series 2008-C,
6.50%, 11/15/28

 

 

3,685

 

 

4,279,354

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

American Airlines Inc., JFK International Airport, AMT,
8.00%, 8/01/28

 

 

1,045

 

 

1,088,754

 

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

 

 

2,400

 

 

2,373,024

 

Series C, 6.80%, 6/01/28

 

 

510

 

 

536,219

 

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

 

 

1,515

 

 

1,358,546

 

New York Liberty Development Corp., RB, National Sports
Museum Project, Series A, 6.13%, 2/15/19 (c)(d)

 

 

870

 

 

9

 

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

 

 

1,240

 

 

1,292,799

 

 

 

 

 

 




 

 

 

 

 

 

15,870,768

 









North Carolina — 0.9%

 

 

 

 

 

 

 

North Carolina Medical Care Commission, Refunding RB,
First Mortgage, Deerfield, Series A, 6.13%, 11/01/38

 

 

2,335

 

 

2,317,884

 









Ohio — 2.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.13%, 6/01/24

 

 

2,265

 

 

2,084,276

 

6.50%, 6/01/47

 

 

3,935

 

 

3,229,218

 

 

 

 

 

 




 

 

 

 

 

 

5,313,494

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Pennsylvania — 9.4%

 

 

 

 

 

 

 

Allegheny County Hospital Development Authority,
Refunding RB, Health System, West Penn, Series A,
5.38%, 11/15/40

 

$

3,960

 

$

3,178,019

 

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

 

 

 

 

 

 

 

6.13%, 1/01/25

 

 

200

 

 

189,342

 

6.25%, 1/01/35

 

 

1,550

 

 

1,410,794

 

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

 

 

3,655

 

 

3,682,376

 

Lancaster County Hospital Authority, RB, Brethren Village
Project, Series A:

 

 

 

 

 

 

 

6.25%, 7/01/26

 

 

685

 

 

684,233

 

6.50%, 7/01/40

 

 

590

 

 

572,501

 

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

 

 

2,330

 

 

1,870,524

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

National Gypsum Co., Series A, 6.25%, 11/01/27

 

 

3,250

 

 

2,594,572

 

Reliant Energy, Series B, 6.75%, 12/01/36

 

 

2,040

 

 

2,104,770

 

Pennsylvania Higher Educational Facilities Authority,
Refunding RB, Allegheny Delaware Valley Obligation,
Series A (NPFGC), 5.88%, 11/15/21

 

 

1,645

 

 

1,586,899

 

Philadelphia Authority for Industrial Development,
RB, AMT:

 

 

 

 

 

 

 

Commercial Development, 7.75%, 12/01/17

 

 

5,000

 

 

5,005,450

 

Subordinate, Air Cargo, Series A, 7.50%, 1/01/25

 

 

2,270

 

 

2,163,264

 

 

 

 

 

 




 

 

 

 

 

 

25,042,744

 









Puerto Rico — 1.3%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority, Refunding RB,
Series Q, 5.63%, 7/01/39

 

 

1,650

 

 

1,684,815

 

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

 

 

1,650

 

 

1,864,022

 

 

 

 

 

 




 

 

 

 

 

 

3,548,837

 









Rhode Island — 0.8%

 

 

 

 

 

 

 

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

 

 

2,495

 

 

2,140,735

 









South Carolina — 0.5%

 

 

 

 

 

 

 

Connector 2000 Association Inc., RB, CAB, Senior
Series B, 0.00%, 1/01/14 (a)(c)(d)

 

 

1,485

 

 

245,025

 

South Carolina Jobs, EDA, Refunding RB, Palmetto
Health, 5.50%, 8/01/26

 

 

975

 

 

967,463

 

 

 

 

 

 




 

 

 

 

 

 

1,212,488

 









Tennessee — 0.6%

 

 

 

 

 

 

 

Knox County Health Educational & Housing Facilities
Board Tennessee, Refunding RB, Covenant, Series A
(AGM), 4.68%, 1/01/40 (a)

 

 

6,480

 

 

1,263,794

 

Shelby County Health Educational & Housing Facilities
Board, RB, Village at Germantown, 6.25%, 12/01/34

 

 

355

 

 

302,854

 

 

 

 

 

 




 

 

 

 

 

 

1,566,648

 










 

 

 

See Notes to Financial Statements.

 




20

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Texas — 8.9%

 

 

 

 

 

 

 

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

 

$

2,985

 

$

3,013,805

 

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

 

 

2,550

 

 

1,518,525

 

Central Texas Regional Mobility Authority, RB:

 

 

 

 

 

 

 

CAB, 7.56%, 1/01/29 (a)

 

 

2,000

 

 

525,380

 

CAB, 7.65%, 1/01/30 (a)

 

 

1,170

 

 

283,409

 

CAB, 7.71%, 1/01/31 (a)

 

 

2,000

 

 

447,180

 

CAB, 7.77%, 1/01/32 (a)

 

 

3,500

 

 

723,310

 

CAB, 7.78%, 1/01/33 (a)

 

 

1,540

 

 

293,986

 

Senior Lien, 5.75%, 1/01/25

 

 

650

 

 

656,663

 

City of Houston Texas, RB, Special Facilities, Continental
Airlines, Series E, AMT, 6.75%, 7/01/21

 

 

2,685

 

 

2,675,737

 

Harris County Health Facilities Development Corp.,
Refunding RB, Memorial Hermann Healthcare
System B, 7.13%, 12/01/31

 

 

1,500

 

 

1,686,780

 

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

 

 

860

 

 

887,253

 

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

 

 

1,240

 

 

1,342,325

 

North Texas Tollway Authority, RB, Toll, 2nd Tier, Series F,
6.13%, 1/01/31

 

 

2,775

 

 

2,959,648

 

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

 

 

 

 

 

 

 

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

 

 

1,035

 

 

1,023,656

 

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

 

 

2,490

 

 

2,464,577

 

Texas Private Activity Bond Surface Transportation Corp.,
RB, Senior Lien, Note Mobility, 6.88%, 12/31/39

 

 

2,330

 

 

2,434,198

 

Texas State Public Finance Authority, Refunding ERB,
KIPP Inc., Series A (ACA), 5.00%, 2/15/28

 

 

1,000

 

 

919,140

 

 

 

 

 

 




 

 

 

 

 

 

23,855,572

 









U.S. Virgin Islands — 1.3%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21

 

 

3,000

 

 

3,039,120

 

Virgin Islands Public Finance Authority, RB, Senior Lien,
Capital Projects, Series A-1, 5.00%, 10/01/39

 

 

500

 

 

473,480

 

 

 

 

 

 




 

 

 

 

 

 

3,512,600

 









Utah — 0.6%

 

 

 

 

 

 

 

County of Carbon Utah, Refunding RB, Laidlaw
Environmental, Series A, AMT, 7.45%, 7/01/17

 

 

1,660

 

 

1,663,237

 









Virginia — 2.6%

 

 

 

 

 

 

 

Dulles Town Center Community Development Authority,
Special Assessment Bonds, Dulles Town Center Project,
6.25%, 3/01/26

 

 

1,410

 

 

1,335,340

 

Fairfax County EDA, Refunding RB, Goodwin House Inc.:

 

 

 

 

 

 

 

5.13%, 10/01/37

 

 

750

 

 

724,792

 

5.13%, 10/01/42

 

 

450

 

 

430,475

 

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

 

 

540

 

 

453,298

 

Tobacco Settlement Financing Corp. Virginia,
Refunding RB, Senior Series B1, 5.00%, 6/01/47

 

 

5,875

 

 

4,043,939

 

 

 

 

 

 




 

 

 

 

 

 

6,987,844

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Wisconsin — 2.2%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

New Castle Place Project, Series A, 7.00%,
12/01/31

 

$

1,855

 

$

1,785,104

 

Wheaton Franciscan Healthcare, 5.25%, 8/15/34

 

 

3,695

 

 

3,351,402

 

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

 

 

 

 

 

 

 

7.25%, 9/15/29

 

 

250

 

 

255,685

 

7.63%, 9/15/39

 

 

505

 

 

523,983

 

 

 

 

 

 




 

 

 

 

 

 

5,916,174

 









Wyoming — 1.3%

 

 

 

 

 

 

 

County of Sweetwater Wyoming, Refunding RB, FMC Corp.
Project, AMT, 5.60%, 12/01/35

 

 

3,600

 

 

3,458,088

 









Total Municipal Bonds — 94.3%

 

 

 

 

 

251,680,086

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

 

 

 

 

 

 









District of Columbia — 1.6%

 

 

 

 

 

 

 

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

 

 

3,951

 

 

4,450,360

 









Florida — 3.3%

 

 

 

 

 

 

 

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

 

 

8,870

 

 

8,845,874

 









Virginia — 3.3%

 

 

 

 

 

 

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.38%,
7/01/36

 

 

8,690

 

 

8,756,392

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 8.2%

 

 

 

 

 

22,052,626

 









Total Long-Term Investments
(Cost — $278,348,530) — 102.5%

 

 

 

 

 

273,732,712

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








FFI Institutional Tax-Exempt Fund, 0.25% (i)(j)

 

 

149,925

 

 

149,925

 









Total Short-Term Securities
(Cost — $149,925) — 0.1%

 

 

 

 

 

149,925

 









Total Investments (Cost — $278,498,455*) — 102.6%

 

 

 

 

 

273,882,637

 

Other Assets Less Liabilities — 1.4%

 

 

 

 

 

3,711,696

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (4.0)%

 

 

 

 

 

(10,763,093

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

266,831,240

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

21




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

267,163,993

 

 

 

 




 

Gross unrealized appreciation

 

$

12,828,567

 

 

Gross unrealized depreciation

 

 

(16,865,569

)

 

 

 




 

Net unrealized depreciation

 

$

(4,037,002

)

 

 

 





 

 

(a)

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

 

 

(b)

When-issued security. Net unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 

 

 







 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 







 

Raymond C. Forbes

 

$

2,625,735

 

$

45,412

 

 

Morgan Stanley Capital Services, Inc.

 

$

906,714

 

$

6,714

 

 

BB&T Capital Markets

 

$

297,555

 

$

447

 

 










 

 

(c)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(d)

Non-income producing security.

 

 

(e)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(f)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

 

(g)

Variable rate security. Rate shown is as of report date.

 

 

(h)

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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(i)

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


 

 

 

 

 

 

 

 

 

 

 

 

 












 

Affiliate

 

Shares
Held at
April 30,
2009

 

Net
Activity

 

Shares
Held at
April 30,
2010

 

Income

 

 












 

FFI Institutional Tax-Exempt Fund

 

2,001,534

 

(1,851,609)

 

149,925

 

$

4,762

 

 













 

 

(j)

Represents the current yield as of report date.


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

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

The inputs or methodologies 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 Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of April 30, 2010 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Investments in Securities

 





Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

273,732,712

 

 

 

$

273,732,712

 

Short-Term Securities

 

$

149,925

 

 

 

 

 

 

149,925

 

 

 













Total

 

$

149,925

 

$

273,732,712

 

 

 

$

273,882,637

 

 

 














 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.

 




22

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Schedule of Investments April 30, 2010

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 1.3%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/22

 

$

2,750

 

$

2,368,218

 

4.75%, 1/01/25

 

 

2,200

 

 

1,739,760

 

 

 

 

 

 




 

 

 

 

 

 

4,107,978

 









Alaska — 0.4%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,379,328

 









Arizona — 1.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

3,250

 

 

3,330,860

 

5.25%, 10/01/28

 

 

1,000

 

 

1,037,580

 

5.00%, 10/01/29

 

 

400

 

 

405,384

 

 

 

 

 

 




 

 

 

 

 

 

4,773,824

 









California — 23.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.64%, 10/01/24

 

 

10,185

 

 

8,227,443

 

5.57%, 10/01/25

 

 

6,000

 

 

4,810,980

 

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

 

 

5,000

 

 

5,697,300

 

Antelope Valley Community College District, GO,
Election 2004, Series B (NPFGC), 5.25%, 8/01/39

 

 

600

 

 

617,436

 

Arcadia Unified School District California, GO, CAB,
Election of 2006, Series A (AGM), 4.96%, 8/01/39 (b)

 

 

1,600

 

 

262,224

 

Cabrillo Community College District California, GO, CAB,
Election of 2004, Series B (NPFGC), 5.18%,
8/01/37 (b)

 

 

2,400

 

 

419,208

 

California Health Facilities Financing Authority,
Refunding RB, St. Joseph Health System, Series A,
5.75%, 7/01/39

 

 

550

 

 

571,797

 

California State University, RB, Systemwide, Series A
(NPFGC), 5.00%, 11/01/35

 

 

1,600

 

 

1,609,296

 

Chino Valley Unified School District, GO, Election of 2002,
Series C (NPFGC), 5.25%, 8/01/30

 

 

850

 

 

864,348

 

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

 

 

1,420

 

 

1,448,329

 

Fresno Unified School District California, GO,
Election 2001, Series E (AGM), 5.00%, 8/01/30

 

 

900

 

 

918,324

 

Los Angeles Department of Water & Power, RB, Series C
(NPFGC), 5.00%, 7/01/29

 

 

5,160

 

 

5,316,090

 

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

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

2,965

 

 

3,057,834

 

5.00%, 10/01/36

 

 

1,655

 

 

1,690,367

 

Norco Redevelopment Agency California, Tax Allocation
Bonds, Refunding, Project Area No. 1 (NPFGC), 5.13%,
3/01/30

 

 

5,000

 

 

4,740,250

 

Orange County Sanitation District, COP:

 

 

 

 

 

 

 

(NPFGC), 5.00%, 2/01/33

 

 

7,455

 

 

7,579,648

 

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

 

 

1,500

 

 

1,576,125

 

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

 

 

900

 

 

943,515

 

Poway Redevelopment Agency California, Tax Allocation
Bonds, Refunding, Paguay Redevelopment Project
(AMBAC), 5.13%, 6/15/33

 

 

1,750

 

 

1,573,810

 

Sacramento Unified School District California, GO,
Election of 2002 (NPFGC), 5.00%, 7/01/30

 

 

4,150

 

 

4,221,504

 

San Mateo County Community College District, GO, CAB,
Election of 2001, Series C (NPFGC), 5.53%,
9/01/30 (b)

 

 

12,740

 

 

4,072,214

 

State of California, GO:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

20

 

 

20,067

 

5.13%, 6/01/31

 

 

60

 

 

60,094

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 

Stockton Public Financing Authority California, RB,
Parking & Capital Projects (NPFGC), 5.13%, 9/01/30

 

$

6,145

 

$

6,159,932

 

Ventura County Community College District, GO,
Election of 2002, Series B (NPFGC), 5.00%, 8/01/30

 

 

2,325

 

 

2,381,963

 

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

 

 

5,035

 

 

5,140,433

 

 

 

 

 

 




 

 

 

 

 

 

73,980,531

 









Colorado — 0.7%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Covenant
Retirement Communities, Series A (Radian):

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

1,200

 

 

1,104,720

 

5.50%, 12/01/33

 

 

675

 

 

605,286

 

Colorado Housing & Finance Authority, Refunding RB,
S/F Program, Senior Series A-2, AMT, 7.50%, 4/01/31

 

 

375

 

 

398,291

 

 

 

 

 

 




 

 

 

 

 

 

2,108,297

 









District of Columbia — 2.8%

 

 

 

 

 

 

 

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

 

 

9,400

 

 

8,810,808

 









Florida — 12.8%

 

 

 

 

 

 

 

Broward County School Board Florida, COP, Series A
(AGM), 5.25%, 7/01/33

 

 

1,600

 

 

1,651,344

 

City of Tallahassee Florida, RB (NPFGC), 5.00%,
10/01/32

 

 

4,000

 

 

4,079,320

 

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

 

 

3,000

 

 

3,095,280

 

County of Broward Florida, RB, Series A, 5.25%,
10/01/34

 

 

850

 

 

886,967

 

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

 

 

3,000

 

 

3,008,760

 

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

 

 

1,400

 

 

1,510,488

 

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

 

 

4,950

 

 

5,071,027

 

County of Miami-Dade Florida, Refunding RB, Miami
International Airport, AMT (AGC), 5.00%, 10/01/40

 

 

9,900

 

 

9,424,602

 

County of Orange Florida, Refunding RB, Series B
(NPFGC), 5.13%, 1/01/32

 

 

4,200

 

 

4,240,866

 

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

 

 

1,750

 

 

1,762,285

 

Miami-Dade County School Board, COP, Refunding,
Series B (AGC):

 

 

 

 

 

 

 

5.25%, 5/01/31

 

 

1,800

 

 

1,859,328

 

5.00%, 5/01/33

 

 

2,000

 

 

1,997,280

 

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

 

 

275

 

 

285,040

 

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

 

 

2,000

 

 

2,136,340

 

 

 

 

 

 




 

 

 

 

 

 

41,008,927

 









Georgia — 4.0%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB (AGM), 5.25%,
10/01/39

 

 

2,300

 

 

2,391,701

 

Gwinnett County Hospital Authority, Refunding RB,
Gwinnett Hospital System, Series D (AGM), 5.50%,
7/01/41

 

 

825

 

 

838,596

 

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

 

 

7,475

 

 

9,437,486

 

 

 

 

 

 




 

 

 

 

 

 

12,667,783

 










 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2010

23




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Illinois — 19.6%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO, Refunding,
Series A:

 

 

 

 

 

 

 

(AGM), 5.50%, 12/01/31

 

$

3,000

 

$

3,344,940

 

Chicago School Reform Board (NPFGC), 5.50%,
12/01/26

 

 

1,000

 

 

1,120,870

 

City of Chicago Illinois, ARB, General, 3rd Lien,
Series B-2, AMT:

 

 

 

 

 

 

 

(AGM), 5.75%, 1/01/23

 

 

5,670

 

 

5,887,445

 

(Syncora), 6.00%, 1/01/29

 

 

2,500

 

 

2,599,650

 

City of Chicago Illinois, GO, Refunding, Series A (AGM),
5.00%, 1/01/25

 

 

500

 

 

529,010

 

City of Chicago Illinois, RB, Series A (AGC), 5.00%,
1/01/38

 

 

2,000

 

 

2,042,000

 

City of Chicago Illinois, Refunding RB, General Airport,
Third Lien, Series A, AMT (NPFGC), 5.75%, 1/01/21

 

 

9,000

 

 

9,241,110

 

County of Cook Illinois, GO, Capital Improvement,
Series C (AMBAC), 5.50%, 11/15/12 (c)

 

 

2,460

 

 

2,741,399

 

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

 

 

1,000

 

 

1,020,410

 

Illinois Sports Facilities Authority, RB, State Tax
Supported (AMBAC), 5.58%, 6/15/30 (a)

 

 

20,120

 

 

20,327,437

 

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

 

 

10,115

 

 

12,394,213

 

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

 

 

1,275

 

 

1,328,397

 

 

 

 

 

 




 

 

 

 

 

 

62,576,881

 









Indiana — 0.1%

 

 

 

 

 

 

 

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

 

 

400

 

 

422,412

 









Iowa — 1.9%

 

 

 

 

 

 

 

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

 

 

5,725

 

 

6,110,636

 









Louisiana — 1.7%

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,404,813

 

Louisiana State Transportation Authority, RB, CAB,
Senior Lien, Louisiana 1 Project, Series B (AMBAC),
5.31%, 12/01/27 (b)

 

 

1,085

 

 

432,242

 

Rapides Finance Authority Louisiana, RB, Cleco
Power LLC Project, AMT (AMBAC), 4.70%, 11/01/36

 

 

2,250

 

 

1,947,015

 

State of Louisiana, RB, Series A (NPFGC), 5.00%,
5/01/35

 

 

1,740

 

 

1,761,489

 

 

 

 

 

 




 

 

 

 

 

 

5,545,559

 









Maryland — 0.4%

 

 

 

 

 

 

 

Maryland Community Development Administration,
Refunding RB, Residential, Series A, AMT, 5.75%,
9/01/39

 

 

1,225

 

 

1,273,853

 









Massachusetts — 4.0%

 

 

 

 

 

 

 

Massachusetts HFA, RB, AMT (AGM):

 

 

 

 

 

 

 

Rental Mortgage, Series F, 5.25%, 1/01/46

 

 

5,300

 

 

5,291,096

 

S/F Housing, Series 128, 4.80%, 12/01/27

 

 

1,600

 

 

1,564,624

 

Massachusetts HFA, Refunding RB, Rental Housing,
Series A, AMT (AGM), 5.15%, 7/01/26

 

 

3,000

 

 

3,044,430

 

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

 

 

2,700

 

 

2,806,272

 

 

 

 

 

 




 

 

 

 

 

 

12,706,422

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Michigan — 5.0%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Second Lien, Series B:

 

 

 

 

 

 

 

(AGM), 7.50%, 7/01/33

 

$

700

 

$

840,532

 

(AGM), 6.25%, 7/01/36

 

 

400

 

 

436,692

 

(AGM), 7.00%, 7/01/36

 

 

200

 

 

230,386

 

System (NPFGC), 5.00%, 7/01/36

 

 

3,600

 

 

3,502,440

 

City of Detroit Michigan, Refunding RB, Second Lien,
Series E (BHAC), 5.75%, 7/01/31

 

 

2,500

 

 

2,650,100

 

Michigan Higher Education Student Loan Authority,
Refunding RB, Student Loan, Series XVII-G, AMT
(AMBAC), 5.20%, 9/01/20

 

 

1,500

 

 

1,508,070

 

Michigan Strategic Fund, RB, Detroit Edison Co. Project,
Series C, AMT (Syncora), 5.45%, 12/15/32

 

 

4,300

 

 

4,090,590

 

Michigan Strategic Fund, Refunding RB, AMT (Syncora),
Detroit Edison Co.:

 

 

 

 

 

 

 

Pollution, Series C, 5.65%, 9/01/29

 

 

1,410

 

 

1,408,237

 

Project, Series A, 5.50%, 6/01/30

 

 

1,300

 

 

1,248,052

 

 

 

 

 

 




 

 

 

 

 

 

15,915,099

 









Minnesota — 0.9%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,804,200

 









Nevada — 5.2%

 

 

 

 

 

 

 

City of Carson City Nevada, RB, Carson-Tahoe Hospital
Project, Series A (Radian), 5.50%, 9/01/33

 

 

3,100

 

 

2,858,975

 

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

 

 

850

 

 

938,842

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

3,800

 

 

3,868,932

 

Southwest Gas Corp. Project, Series A, AMT (FGIC),
4.75%, 9/01/36

 

 

75

 

 

62,146

 

Southwest Gas Corp. Project, Series D, AMT
(NPFGC), 5.25%, 3/01/38

 

 

1,300

 

 

1,176,526

 

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

 

 

1,500

 

 

1,503,255

 

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

 

 

3,200

 

 

3,181,280

 

System, Subordinate Lien, Series C (AGM), 5.00%,
7/01/26

 

 

1,475

 

 

1,523,100

 

Las Vegas Valley Water District, GO, Refunding, Series A
(NPFGC), 5.00%, 6/01/24

 

 

1,600

 

 

1,672,928

 

 

 

 

 

 




 

 

 

 

 

 

16,785,984

 









New Jersey — 9.2%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax (Radian), 5.50%, 6/15/31

 

 

600

 

 

568,416

 

Cigarette Tax (Radian), 5.75%, 6/15/34

 

 

305

 

 

295,319

 

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

 

 

9,325

 

 

9,442,588

 

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

 

 

7,800

 

 

7,939,542

 

School Facilities Construction, Series O, 5.13%,
3/01/28

 

 

2,250

 

 

2,336,828

 

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

 

 

2,000

 

 

2,263,220

 

New Jersey EDA, Refunding RB, School Facilities
Construction, Series N-1:

 

 

 

 

 

 

 

(AGM), 5.50%, 9/01/25

 

 

5,000

 

 

5,741,450

 

(NPFGC), 5.50%, 9/01/28

 

 

815

 

 

899,793

 

 

 

 

 

 




 

 

 

 

 

 

29,487,156

 










 

 

 

See Notes to Financial Statements.

 




24

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York — 3.3%

 

 

 

 

 

 

 

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

 

$

1,500

 

$

1,633,155

 

Metropolitan Transportation Authority, RB, Series 2008-C,
6.50%, 11/15/28

 

 

4,000

 

 

4,645,160

 

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

 

 

2,750

 

 

3,008,308

 

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

 

 

1,200

 

 

1,360,320

 

 

 

 

 

 




 

 

 

 

 

 

10,646,943

 









Ohio — 0.4%

 

 

 

 

 

 

 

Ohio Higher Educational Facility Commission,
Refunding RB, Summa Health System, 2010 Project
(AGC), 5.25%, 11/15/40 (d)

 

 

1,250

 

 

1,224,075

 









Pennsylvania — 1.2%

 

 

 

 

 

 

 

Pennsylvania HFA, Refunding RB, Series 99A, AMT,
5.25%, 10/01/32

 

 

1,500

 

 

1,514,565

 

Pennsylvania Turnpike Commission, RB, CAB,
Sub-Series E, 6.47%, 12/01/38 (a)

 

 

3,000

 

 

2,013,270

 

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

 

 

400

 

 

429,220

 

 

 

 

 

 




 

 

 

 

 

 

3,957,055

 









Puerto Rico — 1.5%

 

 

 

 

 

 

 

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

 

 

3,200

 

 

3,593,056

 

Puerto Rico Sales Tax Financing Corp., Refunding RB,
CAB, Series A (NPFGC), 5.71%, 8/01/41 (b)

 

 

8,500

 

 

1,342,575

 

 

 

 

 

 




 

 

 

 

 

 

4,935,631

 









Rhode Island — 3.3%

 

 

 

 

 

 

 

Providence Public Building Authority Rhode Island, RB,
Series A (AGM), 6.25%, 12/15/10 (c)

 

 

4,345

 

 

4,550,519

 

Rhode Island EDC, RB, Series B (FGIC), 6.50%,
7/01/10 (c)

 

 

3,355

 

 

3,422,905

 

Rhode Island Health & Educational Building Corp.,
Refunding RB, Public Schools Financing Program,
Series E (AGC), 6.00%, 5/15/29

 

 

2,375

 

 

2,614,946

 

 

 

 

 

 




 

 

 

 

 

 

10,588,370

 









Tennessee — 1.8%

 

 

 

 

 

 

 

Knox County Health Educational & Housing Facilities
Board Tennessee, Refunding RB, Covenant Health,
Series A, 5.04%, 1/01/38 (b)

 

 

600

 

 

112,752

 

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

 

 

5,000

 

 

5,650,700

 

 

 

 

 

 




 

 

 

 

 

 

5,763,452

 









Texas — 14.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.00%, 11/15/35

 

 

2,100

 

 

2,409,120

 

5.38%, 11/15/38

 

 

1,350

 

 

1,463,009

 

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

 

 

13,000

 

 

13,082,160

 

Lewisville ISD Texas, GO, Refunding, CAB, School
Building (NPFGC), 4.67%, 8/15/24 (b)

 

 

4,475

 

 

2,213,066

 

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

 

 

1,725

 

 

1,817,167

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Texas (concluded)

 

 

 

 

 

 

 

Matagorda County Navigation District No. 1 Texas,
Refunding RB, Central Power & Light Co. Project,
AMT (NPFGC), 5.20%, 5/01/30

 

$

2,400

 

$

2,330,304

 

North Harris County Regional Water Authority, RB,
Senior Lien (NPFGC), 5.13%, 12/15/35

 

 

2,895

 

 

2,950,266

 

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

 

 

 

 

 

 

 

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

 

 

3,800

 

 

4,112,094

 

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

 

 

4,015

 

 

4,455,245

 

North Texas Tollway Authority, Refunding RB, First Tier:

 

 

 

 

 

 

 

Series A, 6.00%, 1/01/28

 

 

2,795

 

 

3,046,913

 

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

 

 

1,600

 

 

1,674,512

 

Texas State Turnpike Authority, RB, First Tier, Series A
(AMBAC), 5.50%, 8/15/39

 

 

5,150

 

 

5,196,916

 

 

 

 

 

 




 

 

 

 

 

 

44,750,772

 









Utah — 1.6%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,258,650

 









Washington — 0.9%

 

 

 

 

 

 

 

Washington Health Care Facilities Authority,
Refunding RB, Providence Health, Series D (AGM),
5.25%, 10/01/33

 

 

2,800

 

 

2,902,900

 









Wisconsin — 1.1%

 

 

 

 

 

 

 

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

 

 

1,375

 

 

1,401,097

 

Wisconsin Housing & EDA, Refunding RB, Series E,
AMT, 5.50%, 9/01/38

 

 

1,910

 

 

2,028,974

 

 

 

 

 

 




 

 

 

 

 

 

3,430,071

 









Total Municipal Bonds — 123.7%

 

 

 

 

 

395,923,597

 










 

 

 

 

 

 

 

 









 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 









Arizona — 0.4%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,255,620

 









California — 2.9%

 

 

 

 

 

 

 

Anaheim Public Financing Authority California, RB,
Electric System Distribution Facilities, Series A (AGM),
5.00%, 10/01/31

 

 

959

 

 

964,885

 

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

 

 

2,500

 

 

2,559,350

 

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

 

 

404

 

 

424,060

 

San Diego County Water Authority, COP, Refunding,
Series 2008-A (AGM), 5.00%, 5/01/33

 

 

2,810

 

 

2,897,840

 

Tamalpais Union High School District California, GO,
Election of 2001 (AGM), 5.00%, 8/01/28

 

 

1,605

 

 

1,651,079

 

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

 

 

840

 

 

943,144

 

 

 

 

 

 




 

 

 

 

 

 

9,440,358

 









Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

900

 

 

954,211

 









District of Columbia — 1.0%
District of Columbia, RB, Series A, 5.50%, 12/01/30

 

 

1,005

 

 

1,128,273

 

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

 

 

1,770

 

 

1,994,212

 

 

 

 

 

 




 

 

 

 

 

 

3,122,485

 










 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2010

25




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 







Florida — 5.9%

 

 

 

 

 

 

 

City of Tallahassee Florida, RB (NPFGC), 5.00%,
10/01/37

 

$

7,500

 

$

7,587,750

 

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

 

 

1,349

 

 

1,407,692

 

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

 

 

10,000

 

 

9,986,400

 

 

 

 

 

 




 

 

 

 

 

 

18,981,842

 









Georgia — 5.6%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB, General, Series B (AGM),
5.25%, 1/01/33

 

 

17,356

 

 

17,778,654

 









Illinois — 0.6%

 

 

 

 

 

 

 

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

 

 

1,880

 

 

2,042,238

 









Louisiana — 1.7%

 

 

 

 

 

 

 

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

 

 

5,400

 

 

5,540,670

 









Massachusetts — 3.5%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

10,600

 

 

11,100,063

 









Nevada — 3.5%

 

 

 

 

 

 

 

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

 

 

3,778

 

 

4,140,824

 

Clark County Water Reclamation District, GO, Series B:

 

 

 

 

 

 

 

5.50%, 7/01/29

 

 

4,499

 

 

4,936,114

 

5.75%, 7/01/34

 

 

1,829

 

 

2,028,571

 

 

 

 

 

 




 

 

 

 

 

 

11,105,509

 









New Hampshire — 2.3%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority,
RB, Dartmouth-Hitchcock Obligation (AGM), 5.50%,
8/01/27

 

 

7,390

 

 

7,535,583

 









New York — 1.9%

 

 

 

 

 

 

 

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

 

 

1,260

 

 

1,425,298

 

New York State Thruway Authority, RB, Series G (AGM),
5.00%, 1/01/32

 

 

3,100

 

 

3,182,088

 

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

 

 

1,300

 

 

1,398,072

 

 

 

 

 

 




 

 

 

 

 

 

6,005,458

 









Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

580

 

 

611,419

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 









South Carolina — 2.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 12/01/28

 

$

3,120

 

$

3,240,557

 

5.25%, 12/01/29

 

 

2,765

 

 

2,859,425

 

5.25%, 12/01/30

 

 

1,010

 

 

1,041,471

 

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

 

 

1,275

 

 

1,388,526

 

 

 

 

 

 




 

 

 

 

 

 

8,529,979

 









Texas — 0.7%

 

 

 

 

 

 

 

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

 

 

2,200

 

 

2,376,319

 









Virginia — 0.8%

 

 

 

 

 

 

 

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

 

 

350

 

 

370,440

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC), 5.35%,
7/01/31

 

 

2,310

 

 

2,331,183

 

 

 

 

 

 




 

 

 

 

 

 

2,701,623

 









Washington — 1.3%

 

 

 

 

 

 

 

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

 

 

4,004

 

 

4,213,815

 









Wisconsin — 0.5%

 

 

 

 

 

 

 

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

 

 

1,430

 

 

1,464,392

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 35.8%

 

 

 

 

 

114,760,238

 









Total Long-Term Investments
(Cost — $501,696,145) — 159.5%

 

 

 

 

 

510,683,835

 










 

 

 

 

 

 

 

 








 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.25% (f)(g)

 

 

7,207,423

 

 

7,207,423

 









Total Short-Term Securities
(Cost — $7,207,423) — 2.3%

 

 

 

 

 

7,207,423

 









Total Investments (Cost — $508,903,568*) — 161.8%

 

 

 

 

 

517,891,258

 

Other Assets Less Liabilities — 1.3%

 

 

 

 

 

4,247,936

 

Liability for Trust Certificates, Including

 

 

 

 

 

 

 

Interest Expense and Fees Payable — (18.6)%

 

 

 

 

 

(59,464,524

)

Preferred Shares, at Redemption Value — (44.5)%

 

 

 

 

 

(142,591,476

)

 

 

 

 

 




Net Assets Applicable to Common Shares– 100.0%

 

 

 

 

$

320,083,194

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.

 




26

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniEnhanced Fund, Inc. (MEN)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

450,047,098

 

 

 

 




 

Gross unrealized appreciation

 

$

15,836,883

 

 

Gross unrealized depreciation

 

 

(7,387,319

)

 

 

 




 

Net unrealized appreciation

 

$

8,449,564

 

 

 

 





 

 

(a)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(b)

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

 

 

(c)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(d)

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


 

 

 

 

 

 

 

 

 

 







 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 







 

JPMorgan Chase & Co.

 

$

1,224,075

 

$

5,625

 

 










 

 

(e)

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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(f)

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


 

 

 

 

 

 

 

 

 

 

 

 











 

Affiliate

 

Shares
Held at
April 30,
2009

 

Net
Activity

 

Shares
Held at
April 30,
2010

 

Income

 

 











 

FFI Institutional Tax-Exempt Fund

 

3,302,493

 

3,904,930

 

7,207,423

 

$20,949

 

 












 

 

(g)

Represents the current yield as of report date.


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

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

 

 

 

 

The inputs or methodologies 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 Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of April 30, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





 

 

 

Investments in Securities

 

 





 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 











 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

510,683,835

 

 

 

$

510,683,835

 

 

Short-Term Securities

 

$

7,207,423

 

 

 

 

 

 

7,207,423

 

 

 

 













 

Total

 

$

7,207,423

 

$

510,683,835

 

 

 

$

517,891,258

 

 

 

 














 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2010

27




 

 


 

 

Schedule of Investments April 30, 2010

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 2.6%

 

 

 

 

 

 

 

Camden IDB Alabama, RB, Weyerhaeuser Co. Project,
Series A, 6.13%, 12/01/13 (a)

 

$

1,750

 

$

2,042,880

 

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

 

 

4,550

 

 

3,715,075

 

 

 

 

 

 




 

 

 

 

 

 

5,757,955

 









Arizona — 4.7%

 

 

 

 

 

 

 

County of Pinal Arizona, COP, 5.00%, 12/01/29

 

 

730

 

 

720,101

 

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

 

 

2,200

 

 

1,512,192

 

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

 

 

2,215

 

 

1,732,197

 

Pima County IDA, Refunding IDRB, Tucson Electric
Power, 5.75%, 9/01/29

 

 

770

 

 

783,537

 

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

 

 

1,370

 

 

1,432,006

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

2,000

 

 

1,813,880

 

5.00%, 12/01/37

 

 

2,360

 

 

2,092,730

 

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

 

 

305

 

 

305,195

 

 

 

 

 

 




 

 

 

 

 

 

10,391,838

 









California — 17.8%

 

 

 

 

 

 

 

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

 

 

455

 

 

448,362

 

California Health Facilities Financing Authority, RB,
Cedars-Sinai Medical Center, 5.00%, 8/15/39

 

 

1,020

 

 

986,432

 

California Health Facilities Financing Authority,
Refunding RB, St. Joseph Health System, Series A,
5.75%, 7/01/39

 

 

1,530

 

 

1,590,634

 

California State Public Works Board, RB:

 

 

 

 

 

 

 

Department of Corrections, Series C,
5.25%, 6/01/28

 

 

2,420

 

 

2,403,133

 

Various Capital Projects, Sub-Series I-1,
6.38%, 11/01/34

 

 

820

 

 

878,507

 

California Statewide Communities Development
Authority, RB:

 

 

 

 

 

 

 

Health Facility, Memorial Health Services, Series A,
6.00%, 10/01/23

 

 

3,870

 

 

4,037,764

 

John Muir Health, 5.13%, 7/01/39

 

 

1,510

 

 

1,464,322

 

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

 

 

555

 

 

575,191

 

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

 

 

4,115

 

 

4,193,020

 

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

 

 

 

 

 

 

 

5.62%, 8/01/22

 

 

2,405

 

 

1,203,342

 

5.61%, 8/01/23

 

 

2,455

 

 

1,147,467

 

San Diego Unified School District California, GO, CAB,
Election of 2008, Series A, 6.06%, 7/01/29 (c)

 

 

3,475

 

 

1,260,661

 

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

 

 

6,600

 

 

6,837,402

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

5.00%, 6/01/32

 

 

1,755

 

 

1,755,965

 

6.50%, 4/01/33

 

 

8,370

 

 

9,489,655

 

Tustin Unified School District California, Special Tax
Bonds, Senior Lien, Community Facilities District 97-1,
Series A (AGM), 5.00%, 9/01/32

 

 

680

 

 

679,048

 

 

 

 

 

 




 

 

 

 

 

 

38,950,905

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Colorado — 2.9%

 

 

 

 

 

 

 

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

 

$

1,455

 

$

1,435,896

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee, Series A, 7.35%, 9/01/31

 

 

2,645

 

 

2,441,917

 

Platte River Power Authority Colorado, RB, Series HH,
5.00%, 6/01/28

 

 

245

 

 

265,056

 

Plaza Metropolitan District No. 1 Colorado, Tax
Allocation Bonds, Subordinate Public Improvement
Fee, Tax Increment, 8.13%, 12/01/25

 

 

1,000

 

 

953,760

 

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

 

 

1,250

 

 

1,332,700

 

 

 

 

 

 




 

 

 

 

 

 

6,429,329

 









Connecticut — 2.8%

 

 

 

 

 

 

 

Connecticut State Development Authority, RB, AFCO
Cargo BDL LLC Project, AMT, 8.00%, 4/01/30

 

 

2,735

 

 

2,584,493

 

Connecticut State Health & Educational Facility
Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit, 5.00%, 11/15/40

 

 

955

 

 

981,243

 

Wesleyan University, 5.00%, 7/01/35 (d)

 

 

2,515

 

 

2,673,571

 

 

 

 

 

 




 

 

 

 

 

 

6,239,307

 









District of Columbia — 2.3%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, RB:

 

 

 

 

 

 

 

CAB, Second Senior Lien, Series B (AGC), 7.10%,
10/01/35 (c)

 

 

13,485

 

 

3,008,099

 

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

 

 

505

 

 

524,195

 

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

 

 

1,470

 

 

1,536,826

 

 

 

 

 

 




 

 

 

 

 

 

5,069,120

 









Florida — 9.0%

 

 

 

 

 

 

 

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

 

 

1,195

 

 

1,240,529

 

County of Broward Florida, RB, Series A,
5.25%, 10/01/34

 

 

750

 

 

782,618

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.24%, 10/01/37 (c)

 

 

2,340

 

 

375,734

 

Water & Sewer System, 5.00%, 10/01/34

 

 

3,935

 

 

4,008,466

 

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

 

 

2,620

 

 

2,650,104

 

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

 

 

2,095

 

 

1,937,938

 

Hillsborough County IDA, RB:

 

 

 

 

 

 

 

H. Lee Moffitt Cancer Center Project, Series A,
5.25%, 7/01/37

 

 

3,190

 

 

2,992,603

 

National Gypsum Co., Series B, AMT,
7.13%, 4/01/30

 

 

1,900

 

 

1,654,919

 

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

 

 

2,450

 

 

2,374,368

 

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

 

 

675

 

 

401,092

 

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

 

 

1,535

 

 

1,312,763

 

 

 

 

 

 




 

 

 

 

 

 

19,731,134

 









Georgia — 2.5%

 

 

 

 

 

 

 

City of Atlanta Georgia, Tax Allocation Bonds, Refunding,
Atlantic Station Project (AGC):

 

 

 

 

 

 

 

5.25%, 12/01/20

 

 

90

 

 

96,347

 

5.25%, 12/01/21

 

 

1,780

 

 

1,892,425

 

5.25%, 12/01/22

 

 

345

 

 

363,544

 


 

 

 

See Notes to Financial Statements.

 




28

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Georgia (concluded)

 

 

 

 

 

 

 

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

 

$

585

 

$

607,218

 

Metropolitan Atlanta Rapid Transit Authority, RB,
Third Series, 5.00%, 7/01/39

 

 

2,410

 

 

2,536,573

 

 

 

 

 

 




 

 

 

 

 

 

5,496,107

 









Guam — 0.7%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

440

 

 

455,492

 

6.75%, 11/15/29

 

 

630

 

 

670,043

 

7.00%, 11/15/39

 

 

430

 

 

459,171

 

 

 

 

 

 




 

 

 

 

 

 

1,584,706

 









Illinois — 2.9%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,140,072

 

Illinois Finance Authority, Refunding RB, Central DuPage
Health, Series B, 5.50%, 11/01/39

 

 

1,115

 

 

1,158,474

 

Illinois HDA, RB, Homeowner Mortgage, Sub-Series C2,
AMT, 5.35%, 2/01/27

 

 

3,555

 

 

3,589,199

 

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

 

 

440

 

 

458,427

 

 

 

 

 

 




 

 

 

 

 

 

6,346,172

 









Indiana — 2.5%

 

 

 

 

 

 

 

County of St. Joseph Indiana, Refunding RB,
Notre Dame du Lac Project, 5.00%, 3/01/36

 

 

1,570

 

 

1,662,724

 

Indiana Finance Authority, RB, Sisters of St. Francis
Health, 5.25%, 11/01/39

 

 

585

 

 

595,512

 

Indiana Finance Authority, Refunding RB, Parkview
Health System, Series A, 5.75%, 5/01/31

 

 

2,300

 

 

2,365,044

 

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

 

 

775

 

 

837,411

 

 

 

 

 

 




 

 

 

 

 

 

5,460,691

 









Kansas — 1.2%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB,
Adventist Health, 5.75%, 11/15/38

 

 

2,465

 

 

2,634,740

 









Kentucky — 1.3%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

 

700

 

 

719,600

 

Louisville & Jefferson County Metropolitan Sewer
District Kentucky, RB, Series A (NPFGC),
5.50%, 5/15/34

 

 

2,000

 

 

2,100,060

 

 

 

 

 

 




 

 

 

 

 

 

2,819,660

 









Louisiana — 1.9%

 

 

 

 

 

 

 

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

 

 

570

 

 

597,246

 

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

 

 

3,500

 

 

3,599,120

 

 

 

 

 

 




 

 

 

 

 

 

4,196,366

 









Maine — 0.1%

 

 

 

 

 

 

 

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

 

 

210

 

 

214,322

 









Maryland — 1.0%

 

 

 

 

 

 

 

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

 

 

300

 

 

306,429

 

Maryland State Energy Financing Administration, RB,
Cogeneration, AES Warrior Run, AMT, 7.40%, 9/01/19

 

 

1,970

 

 

1,970,571

 

 

 

 

 

 




 

 

 

 

 

 

2,277,000

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Massachusetts — 2.4%

 

 

 

 

 

 

 

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

 

$

1,165

 

$

1,214,163

 

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

 

 

2,900

 

 

2,857,834

 

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

 

 

1,255

 

 

1,272,432

 

 

 

 

 

 




 

 

 

 

 

 

5,344,429

 









Michigan — 3.3%

 

 

 

 

 

 

 

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

 

 

635

 

 

762,483

 

Flint Hospital Building Authority Michigan, Refunding
RB, Hurley Medical Center (ACA), 6.00%, 7/01/20

 

 

1,310

 

 

1,284,520

 

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

 

 

2,105

 

 

2,075,509

 

Michigan Strategic Fund, Refunding RB, Detroit Edison
Co., Pollution, Series B, AMT, 5.65%, 9/01/29

 

 

3,000

 

 

3,002,400

 

 

 

 

 

 




 

 

 

 

 

 

7,124,912

 









Minnesota — 1.1%

 

 

 

 

 

 

 

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

 

 

2,135

 

 

2,382,681

 









Mississippi — 1.2%

 

 

 

 

 

 

 

Mississippi Development Bank Special Obligation,
Refunding RB, Gulfport Water & Sewer System
Project (AGM):

 

 

 

 

 

 

 

5.25%, 7/01/17

 

 

1,000

 

 

1,121,030

 

5.25%, 7/01/19

 

 

785

 

 

866,075

 

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

 

 

675

 

 

721,703

 

 

 

 

 

 




 

 

 

 

 

 

2,708,808

 









New Hampshire — 1.5%

 

 

 

 

 

 

 

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

 

 

3,035

 

 

3,218,132

 









New Jersey — 7.4%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

 

5,385

 

 

5,286,670

 

Continental Airlines Inc. Project, AMT,
6.63%, 9/15/12

 

 

1,000

 

 

1,010,340

 

Continental Airlines Inc. Project, AMT,
6.25%, 9/15/29

 

 

2,950

 

 

2,767,395

 

New Jersey State Turnpike Authority, RB, Series C (AGM),
5.00%, 1/01/30

 

 

3,500

 

 

3,641,505

 

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

 

 

 

 

 

 

 

4.50%, 6/01/23

 

 

2,730

 

 

2,607,532

 

5.00%, 6/01/41

 

 

1,450

 

 

1,002,661

 

 

 

 

 

 




 

 

 

 

 

 

16,316,103

 









New York — 5.2%

 

 

 

 

 

 

 

City of Troy New York, Refunding RB, Rensselaer
Polytechnic, Series A, 5.13%, 9/01/40

 

 

950

 

 

970,206

 

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

 

 

1,100

 

 

1,093,257

 

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

 

 

1,450

 

 

1,586,358

 

Metropolitan Transportation Authority, Refunding RB,
Series B, 5.00%, 11/15/34

 

 

1,740

 

 

1,821,989

 


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

29




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

Continental Airlines Inc. Project, AMT,
8.00%, 11/01/12

 

$

420

 

$

417,064

 

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

 

 

725

 

 

711,588

 

Series C, 6.80%, 6/01/28

 

 

535

 

 

562,504

 

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

 

 

4,030

 

 

4,161,620

 

 

 

 

 

 




 

 

 

 

 

 

11,324,586

 









North Carolina — 1.3%

 

 

 

 

 

 

 

City of Charlotte North Carolina, RB, Series B,
5.00%, 7/01/38

 

 

660

 

 

711,229

 

North Carolina Medical Care Commission, RB, Duke
University Health System, Series A:

 

 

 

 

 

 

 

5.00%, 6/01/39

 

 

440

 

 

448,672

 

5.00%, 6/01/42

 

 

970

 

 

984,822

 

North Carolina Municipal Power Agency No. 1 Catawba,
Refunding RB, Series A, 5.00%, 1/01/30

 

 

740

 

 

757,198

 

 

 

 

 

 




 

 

 

 

 

 

2,901,921

 









Ohio — 0.8%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB,
Asset-Backed, Senior Series A-2, 6.50%, 6/01/47

 

 

2,160

 

 

1,772,582

 









Pennsylvania — 8.4%

 

 

 

 

 

 

 

Allegheny County Hospital Development Authority,
Refunding RB, Health System, West Penn, Series A,
5.38%, 11/15/40

 

 

1,510

 

 

1,211,820

 

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

 

 

1,700

 

 

1,547,323

 

Montgomery County Higher Education & Health
Authority, Refunding RB, Abington Memorial Hospital,
Series A, 5.13%, 6/01/33

 

 

820

 

 

820,845

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

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

 

 

2,520

 

 

2,724,044

 

Aqua Pennsylvania Inc. Project, 5.00%, 11/15/40

 

 

1,315

 

 

1,354,200

 

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

 

 

3,500

 

 

2,754,885

 

Pennsylvania Turnpike Commission, RB, Sub-Series B,
5.25%, 6/01/39

 

 

4,775

 

 

4,935,058

 

Philadelphia Authority for Industrial Development, RB:

 

 

 

 

 

 

 

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

 

 

1,105

 

 

1,051,065

 

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

 

 

725

 

 

725,790

 

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

 

 

1,245

 

 

1,184,232

 

 

 

 

 

 




 

 

 

 

 

 

18,309,262

 









Puerto Rico — 3.8%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Public
Improvement, Series C, 6.00%, 7/01/39

 

 

2,070

 

 

2,180,124

 

Puerto Rico Industrial Medical & Environmental
Pollution Control Facilities Financing Authority, RB,
Special Facilities, American Airlines, Series A,
6.45%, 12/01/25

 

 

2,060

 

 

1,700,262

 

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

 

 

3,860

 

 

4,360,681

 

 

 

 

 

 




 

 

 

 

 

 

8,241,067

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









South Dakota — 0.6%

 

 

 

 

 

 

 

South Dakota Health & Educational Facilities Authority,
RB, Sanford Health, 5.00%, 11/01/40

 

$

1,245

 

$

1,233,446

 









Tennessee — 3.0%

 

 

 

 

 

 

 

Educational Funding of the South Inc., RB, Senior,
Sub-Series B, AMT, 6.20%, 12/01/21

 

 

2,685

 

 

2,687,041

 

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

 

 

3,410

 

 

3,267,632

 

Rutherford County Health & Educational Facilities
Board, RB, Ascension Health Senior Credit Group,
5.00%, 11/15/40

 

 

710

 

 

722,929

 

 

 

 

 

 




 

 

 

 

 

 

6,677,602

 









Texas — 12.4%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, TXU Electric Co.
Project, Series C, AMT, 5.75%, 5/01/36

 

 

2,660

 

 

2,585,786

 

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

 

 

3,655

 

 

3,713,151

 

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

 

 

1,070

 

 

1,140,138

 

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

 

 

1,910

 

 

2,152,895

 

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

 

 

820

 

 

845,986

 

Matagorda County Hospital District Texas, RB (FHA),
5.00%, 2/15/35

 

 

4,500

 

 

4,381,155

 

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

 

 

4,190

 

 

4,468,803

 

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

 

 

 

 

 

 

 

5.50%, 8/01/23

 

 

2,425

 

 

2,470,541

 

5.50%, 8/01/24

 

 

1,100

 

 

1,116,214

 

5.50%, 8/01/25

 

 

1,120

 

 

1,131,435

 

Texas Department of Housing & Community Affairs, RB,
Series A, AMT (GNMA), 5.70%, 1/01/33

 

 

250

 

 

250,623

 

Texas Private Activity Bond Surface Transportation Corp.,
RB, Senior Lien, Note Mobility, 6.88%, 12/31/39

 

 

2,695

 

 

2,815,520

 

 

 

 

 

 




 

 

 

 

 

 

27,072,247

 









U.S. Virgin Islands — 1.6%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT,
6.50%, 7/01/21

 

 

3,460

 

 

3,505,118

 









Utah — 1.2%

 

 

 

 

 

 

 

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

 

 

2,525

 

 

2,568,001

 









Vermont — 1.1%

 

 

 

 

 

 

 

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

 

 

2,370

 

 

2,402,990

 









Virginia — 2.4%

 

 

 

 

 

 

 

Chesterfield County IDA, Refunding RB, Virginia Electric
& Power Co., Series A, 5.88%, 6/01/17

 

 

1,150

 

 

1,186,674

 

Tobacco Settlement Financing Corp. Virginia, Refunding
RB, Senior Series B1, 5.00%, 6/01/47

 

 

4,785

 

 

3,293,659

 

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

 

 

670

 

 

683,748

 

 

 

 

 

 




 

 

 

 

 

 

5,164,081

 










 

 

 

See Notes to Financial Statements.

 




30

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Washington — 0.6%

 

 

 

 

 

 

 

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

 

$

1,305

 

$

1,212,476

 









Wisconsin — 4.5%

 

 

 

 

 

 

 

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

 

 

4,980

 

 

5,535,768

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,710

 

 

1,742,456

 

New Castle Place Project, Series A,
7.00%, 12/01/31

 

 

825

 

 

793,914

 

SynergyHealth Inc., 6.00%, 11/15/32

 

 

1,755

 

 

1,805,860

 

 

 

 

 

 




 

 

 

 

 

 

9,877,998

 









Wyoming — 0.1%

 

 

 

 

 

 

 

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

 

 

210

 

 

208,335

 









Total Municipal Bonds — 120.1%

 

 

 

 

 

263,166,129

 









 

 

 

 

 

 

 

 


 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 









California — 4.8%

 

 

 

 

 

 

 

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

 

 

2,270

 

 

2,471,889

 

California Educational Facilities Authority, RB, University
of Southern California, Series A, 5.25%, 10/01/18

 

 

1,845

 

 

1,978,430

 

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

 

 

1,620

 

 

1,658,459

 

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

 

 

748

 

 

785,296

 

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

 

 

3,494

 

 

3,653,744

 

 

 

 

 

 




 

 

 

 

 

 

10,547,818

 









Colorado — 2.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series C-3, 5.10%, 10/01/41

 

 

2,580

 

 

2,596,822

 

Series C-7, 5.00%, 9/01/36

 

 

1,650

 

 

1,658,646

 

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

 

 

1,490

 

 

1,579,749

 

 

 

 

 

 




 

 

 

 

 

 

5,835,217

 









Connecticut — 3.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series T-1, 4.70%, 7/01/29

 

 

3,180

 

 

3,336,011

 

Series X-3, 4.85%, 7/01/37

 

 

3,270

 

 

3,408,026

 

 

 

 

 

 




 

 

 

 

 

 

6,744,037

 









Georgia — 1.1%

 

 

 

 

 

 

 

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

 

 

2,259

 

 

2,370,572

 









Massachusetts — 2.4%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

4,994

 

 

5,229,807

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 









New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

$

1,409

 

$

1,530,104

 









New York — 2.7%

 

 

 

 

 

 

 

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

 

 

1,110

 

 

1,234,090

 

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

 

 

4,240

 

 

4,725,781

 

 

 

 

 

 




 

 

 

 

 

 

5,959,871

 









North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

 

1,080

 

 

1,142,176

 









Ohio — 4.6%

 

 

 

 

 

 

 

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

 

 

9,650

 

 

10,082,030

 









Tennessee — 1.1%

 

 

 

 

 

 

 

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

 

 

2,250

 

 

2,327,017

 









Texas — 2.2%

 

 

 

 

 

 

 

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

 

 

4,620

 

 

4,779,344

 









Virginia — 7.9%

 

 

 

 

 

 

 

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

 

 

3,750

 

 

3,969,562

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC):

 

 

 

 

 

 

 

5.35%, 7/01/31

 

 

2,370

 

 

2,391,733

 

5.38%, 7/01/36

 

 

10,940

 

 

11,023,582

 

 

 

 

 

 




 

 

 

 

 

 

17,384,877

 









Washington — 0.9%

 

 

 

 

 

 

 

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

 

 

1,860

 

 

1,956,978

 









Wisconsin — 1.8%

 

 

 

 

 

 

 

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

 

 

3,959

 

 

4,055,238

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 36.5%

 

 

 

 

 

79,945,086

 









Total Long-Term Investments
(Cost — $336,165,825) — 156.6%

 

 

 

 

 

343,111,215

 









 

 

 

 

 

 

 

 


 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.25% (f)(g)

 

 

3,354,654

 

 

3,354,654

 









Total Short-Term Securities
(Cost — $3,354,654) — 1.5%

 

 

 

 

 

3,354,654

 









Total Investments (Cost — $339,520,479*) — 158.1%

 

 

 

 

 

346,465,869

 

Liabilities in Excess of Other Assets — (1.1)%

 

 

 

 

 

(2,305,509

)

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (18.8)%

 

 

 

 

 

(41,320,592

)

Preferred Shares, at Redemption Value — (38.2)%

 

 

 

 

 

(83,706,366

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

219,133,402

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

31




 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund, Inc. (MHD)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

297,394,222

 

 

 




Gross unrealized appreciation

 

$

13,244,578

 

Gross unrealized depreciation

 

 

(5,461,397

)

 

 




Net unrealized appreciation

 

$

7,783,181

 

 

 





 

 

(a)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(b)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(c)

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

 

 

(d)

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


 

 

 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Appreciation

 







Goldman Sachs Bank USA

 

$

2,673,571

 

 

$

15,467

 

 












 

 

(e)

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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(f)

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 















Affiliate

 

Shares
Held at
April 30,
2009

 

Net
Activity

 

Shares
Held at
April 30,
2010

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

1,910,337

 

 

1,444,317

 

 

3,354,654

 

$

13,016

 
















 

 

 

(g)

Represents the current yield as of report date.

 

 

 

  •

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

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

 

 

 

 

The inputs or methodologies 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 Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of April 30, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 





 

 

Investments in Securities

 





Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

343,111,215

 

 

 

$

343,111,215

 

Short-Term Securities

 

$

3,354,654

 

 

 

 

 

 

3,354,654

 

 

 













Total

 

$

3,354,654

 

$

343,111,215

 

 

 

$

346,465,869

 

 

 














 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.

 




32

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Schedule of Investments April 30, 2010

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 1.7%

 

 

 

 

 

 

 

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

 

$

3,450

 

$

2,816,925

 









Arizona — 4.6%

 

 

 

 

 

 

 

Arizona Health Facilities Authority, RB, Catholic
Healthcare West, Series A, 6.63%, 7/01/20

 

 

1,000

 

 

1,019,370

 

County of Pinal Arizona, COP, 5.00%, 12/01/29

 

 

430

 

 

424,169

 

Maricopa County IDA Arizona, RB, Arizona Charter
Schools Project, Series A, 6.50%, 7/01/12

 

 

65

 

 

60,395

 

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

 

 

2,060

 

 

1,610,982

 

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

 

 

955

 

 

921,069

 

Pima County IDA, Refunding IDRB, Tucson Electric
Power, 5.75%, 9/01/29

 

 

560

 

 

569,845

 

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

 

 

990

 

 

1,034,807

 

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

 

 

1,385

 

 

1,228,149

 

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

 

 

605

 

 

605,387

 

 

 

 

 

 




 

 

 

 

 

 

7,474,173

 









California — 21.8%

 

 

 

 

 

 

 

Benicia Unified School District, GO, CAB, Series A
(NPFGC), 5.62%, 8/01/20 (a)

 

 

2,000

 

 

1,157,120

 

California Health Facilities Financing Authority, RB,
Cedars-Sinai Medical Center, 5.00%, 8/15/39

 

 

730

 

 

705,976

 

California Health Facilities Financing Authority,
Refunding RB, St. Joseph Health System, Series A,
5.75%, 7/01/39

 

 

1,110

 

 

1,153,989

 

California State Public Works Board, RB:

 

 

 

 

 

 

 

Department of Corrections, Series C,
5.25%, 6/01/28

 

 

1,890

 

 

1,876,827

 

Various Capital Projects, Sub-Series I-1,
6.38%, 11/01/34

 

 

600

 

 

642,810

 

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

 

 

1,090

 

 

1,057,028

 

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

 

 

400

 

 

414,552

 

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

 

 

2,975

 

 

3,031,406

 

Poway Unified School District, Special Tax Bonds,
Community Facilities District No. 6 Area, Series A,
6.13%, 9/01/33

 

 

1,750

 

 

1,673,560

 

San Diego Unified School District California, GO, CAB,
Election of 2008, Series A, 6.06%, 7/01/29 (a)

 

 

2,525

 

 

916,020

 

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

 

 

4,770

 

 

4,941,577

 

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

 

 

 

 

 

 

 

5.51%, 7/01/17

 

 

1,820

 

 

1,384,146

 

5.55%, 7/01/18

 

 

1,945

 

 

1,380,580

 

5.60%, 7/01/19

 

 

2,070

 

 

1,384,478

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

1,265

 

 

1,392,398

 

6.50%, 4/01/33

 

 

7,325

 

 

8,304,865

 

Tustin Unified School District California, Special Tax
Bonds, Senior Lien, Community Facilities District 97-1,
Series A (AGM), 5.00%, 9/01/32

 

 

180

 

 

179,748

 

University of California, RB, Limited Project, Series B,
4.75%, 5/15/38

 

 

4,095

 

 

4,057,285

 

 

 

 

 

 




 

 

 

 

 

 

35,654,365

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Colorado — 2.9%

 

 

 

 

 

 

 

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

 

$

1,055

 

$

1,041,148

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee, Series A, 7.10%, 9/01/14

 

 

1,100

 

 

1,123,287

 

Platte River Power Authority Colorado, RB, Series HH,
5.00%, 6/01/28

 

 

755

 

 

816,804

 

Plaza Metropolitan District No. 1 Colorado, Tax
Allocation Bonds, Subordinate Public Improvement
Fee, Tax Increment, 8.13%, 12/01/25

 

 

860

 

 

820,234

 

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

 

 

920

 

 

980,867

 

 

 

 

 

 




 

 

 

 

 

 

4,782,340

 









Connecticut — 1.6%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit, 5.00%, 11/15/40

 

 

685

 

 

703,824

 

Wesleyan University, 5.00%, 7/01/35 (b)

 

 

1,875

 

 

1,993,219

 

 

 

 

 

 




 

 

 

 

 

 

2,697,043

 









District of Columbia — 2.1%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, RB:

 

 

 

 

 

 

 

CAB, 2nd Senior Lien, Series B (AGC),
7.08%, 10/01/34 (a)

 

 

10,170

 

 

2,429,511

 

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

 

 

255

 

 

264,693

 

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

 

 

745

 

 

778,868

 

 

 

 

 

 




 

 

 

 

 

 

3,473,072

 









Florida — 7.7%

 

 

 

 

 

 

 

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

 

 

1,575

 

 

1,487,588

 

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

 

 

870

 

 

903,147

 

County of Broward Florida, RB, Series A,
5.25%, 10/01/34

 

 

545

 

 

568,702

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.24%, 10/01/37 (a)

 

 

1,765

 

 

283,406

 

Water & Sewer System, 5.00%, 10/01/34

 

 

2,845

 

 

2,898,116

 

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

 

 

330

 

 

333,792

 

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

 

 

1,515

 

 

1,401,420

 

Hillsborough County IDA, RB:

 

 

 

 

 

 

 

H. Lee Moffitt Cancer Center Project, Series A,
5.25%, 7/01/37

 

 

2,310

 

 

2,167,057

 

National Gypsum Co., Series B, AMT,
7.13%, 4/01/30

 

 

1,380

 

 

1,201,994

 

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

 

 

495

 

 

294,134

 

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

 

 

1,195

 

 

1,021,988

 

 

 

 

 

 




 

 

 

 

 

 

12,561,344

 









Georgia — 1.8%

 

 

 

 

 

 

 

City of Atlanta Georgia, Tax Allocation Bonds, Refunding,
Atlantic Station Project (AGC), 5.00%, 12/01/23

 

 

695

 

 

718,540

 

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

 

 

420

 

 

435,951

 

Metropolitan Atlanta Rapid Transit Authority, RB,
Third Series, 5.00%, 7/01/39

 

 

1,740

 

 

1,831,385

 

 

 

 

 

 




 

 

 

 

 

 

2,985,876

 










 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2010

33




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Guam — 0.7%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

$

320

 

$

331,267

 

6.75%, 11/15/29

 

 

455

 

 

483,920

 

7.00%, 11/15/39

 

 

275

 

 

293,656

 

 

 

 

 

 




 

 

 

 

 

 

1,108,843

 









Idaho — 1.2%

 

 

 

 

 

 

 

Power County Industrial Development Corp., RB, FMC
Corp. Project, AMT, 6.45%, 8/01/32

 

 

2,000

 

 

2,011,660

 









Illinois — 1.3%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

950,060

 

Illinois Finance Authority, Refunding RB, Central DuPage
Health, Series B, 5.50%, 11/01/39

 

 

800

 

 

831,192

 

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

 

 

315

 

 

328,192

 

 

 

 

 

 




 

 

 

 

 

 

2,109,444

 









Indiana — 2.4%

 

 

 

 

 

 

 

County of St. Joseph Indiana, Refunding RB, Notre
Dame du Lac Project, 5.00%, 3/01/36

 

 

1,135

 

 

1,202,033

 

Indiana Finance Authority, RB, Sisters of St. Francis
Health, 5.25%, 11/01/39

 

 

420

 

 

427,547

 

Indiana Finance Authority, Refunding RB, Parkview
Health System, Series A, 5.75%, 5/01/31

 

 

1,660

 

 

1,706,945

 

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

 

 

565

 

 

610,500

 

 

 

 

 

 




 

 

 

 

 

 

3,947,025

 









Kansas — 1.2%

 

 

 

 

 

 

 

Kansas Development Finance Authority, Refunding RB,
Adventist Health, 5.75%, 11/15/38

 

 

1,785

 

 

1,907,915

 









Kentucky — 0.3%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

 

510

 

 

524,280

 









Louisiana — 1.8%

 

 

 

 

 

 

 

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

 

 

420

 

 

440,076

 

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

 

 

2,500

 

 

2,570,800

 

 

 

 

 

 




 

 

 

 

 

 

3,010,876

 









Maine — 0.1%

 

 

 

 

 

 

 

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

 

 

150

 

 

153,087

 









Maryland — 0.6%

 

 

 

 

 

 

 

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

 

 

220

 

 

224,715

 

Maryland State Energy Financing Administration, RB,
Cogeneration, AES Warrior Run, AMT, 7.40%, 9/01/19

 

 

750

 

 

750,217

 

 

 

 

 

 




 

 

 

 

 

 

974,932

 









Massachusetts — 4.4%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB,
Neville Communities, Series A (GNMA):

 

 

 

 

 

 

 

5.75%, 6/20/22

 

 

600

 

 

649,866

 

6.00%, 6/20/44

 

 

1,500

 

 

1,587,330

 

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

 

 

845

 

 

880,659

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Massachusetts (concluded)

 

 

 

 

 

 

 

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

 

$

2,100

 

$

2,069,466

 

Massachusetts HFA, Refunding HRB, Series F, AMT,
5.70%, 6/01/40

 

 

1,115

 

 

1,132,327

 

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

 

 

910

 

 

922,640

 

 

 

 

 

 




 

 

 

 

 

 

7,242,288

 









Michigan — 3.7%

 

 

 

 

 

 

 

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

 

 

460

 

 

552,350

 

Flint Hospital Building Authority Michigan, Refunding
RB, Hurley Medical Center (ACA), 6.00%, 7/01/20

 

 

1,030

 

 

1,009,966

 

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

 

 

1,520

 

 

1,498,705

 

Michigan Strategic Fund, Refunding RB, Detroit Edison
Co., Pollution, Series C, AMT (Syncora),
5.65%, 9/01/29

 

 

2,935

 

 

2,931,331

 

 

 

 

 

 




 

 

 

 

 

 

5,992,352

 









Minnesota — 1.0%

 

 

 

 

 

 

 

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

 

 

1,540

 

 

1,718,655

 









Mississippi — 0.9%

 

 

 

 

 

 

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project,
5.88%, 4/01/22

 

 

1,500

 

 

1,493,310

 









Missouri — 0.5%

 

 

 

 

 

 

 

Kansas City IDA Missouri, RB, First Mortgage, Bishop
Spencer, Series A, 6.50%, 1/01/35

 

 

1,000

 

 

887,200

 









New Hampshire — 1.0%

 

 

 

 

 

 

 

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

 

 

1,530

 

 

1,622,320

 









New Jersey — 6.7%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

 

3,050

 

 

2,994,307

 

Cigarette Tax, 5.50%, 6/15/31

 

 

1,890

 

 

1,790,510

 

Continental Airlines Inc. Project, AMT,
6.63%, 9/15/12

 

 

2,000

 

 

2,020,680

 

New Jersey State Turnpike Authority, RB, Series C (AGM),
5.00%, 1/01/30

 

 

2,500

 

 

2,601,075

 

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

 

 

 

 

 

 

 

4.50%, 6/01/23

 

 

950

 

 

907,383

 

5.00%, 6/01/41

 

 

1,050

 

 

726,065

 

 

 

 

 

 




 

 

 

 

 

 

11,040,020

 









New York — 7.4%

 

 

 

 

 

 

 

City of Troy New York, Refunding RB, Rensselaer
Polytechnic, Series A, 5.13%, 9/01/40

 

 

685

 

 

699,570

 

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

 

 

885

 

 

879,575

 

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

 

 

1,050

 

 

1,148,742

 

Metropolitan Transportation Authority, Refunding RB,
Series B, 5.00%, 11/15/34

 

 

1,270

 

 

1,329,842

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

Continental Airlines Inc. Project, AMT,
8.00%, 11/01/12

 

 

525

 

 

521,330

 

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

 

 

525

 

 

515,288

 

Series C, 6.80%, 6/01/28

 

 

415

 

 

436,335

 


 

 

 

See Notes to Financial Statements.

 




34

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (concluded)

 

 

 

 

 

 

 

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

 

$

3,300

 

$

3,503,346

 

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

 

 

2,910

 

 

3,005,041

 

 

 

 

 

 




 

 

 

 

 

 

12,039,069

 









North Carolina — 0.9%

 

 

 

 

 

 

 

City of Charlotte North Carolina, RB, Series B,
5.00%, 7/01/38

 

 

475

 

 

511,870

 

North Carolina Medical Care Commission, RB, Duke
University Health System, Series A:

 

 

 

 

 

 

 

5.00%, 6/01/39

 

 

315

 

 

321,209

 

5.00%, 6/01/42

 

 

705

 

 

715,772

 

 

 

 

 

 




 

 

 

 

 

 

1,548,851

 









Ohio — 0.8%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB,
Asset-Backed, Senior Series A-2, 6.50%, 6/01/47

 

 

1,565

 

 

1,284,302

 









Pennsylvania — 6.6%

 

 

 

 

 

 

 

Allegheny County Hospital Development Authority,
Refunding RB, Health System, West Penn, Series A,
5.38%, 11/15/40

 

 

1,095

 

 

878,770

 

Montgomery County Higher Education & Health
Authority, Refunding RB, Abington Memorial Hospital,
Series A, 5.13%, 6/01/33

 

 

590

 

 

590,608

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,830

 

 

1,978,175

 

Aqua Pennsylvania Inc. Project, 5.00%, 11/15/40

 

 

950

 

 

978,319

 

National Gypsum Co., Series A, AMT,
6.25%, 11/01/27

 

 

2,750

 

 

2,195,407

 

Pennsylvania Turnpike Commission, RB, Sub-Series B,
5.25%, 6/01/39

 

 

3,455

 

 

3,570,812

 

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

 

 

540

 

 

540,589

 

 

 

 

 

 




 

 

 

 

 

 

10,732,680

 









Puerto Rico — 5.0%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Public
Improvement, Series C, 6.00%, 7/01/39

 

 

1,490

 

 

1,569,268

 

Puerto Rico Industrial Medical & Environmental
Pollution Control Facilities Financing Authority, RB,
Special Facilities, American Airlines, Series A,
6.45%, 12/01/25

 

 

1,550

 

 

1,279,323

 

Puerto Rico Sales Tax Financing Corp., RB:

 

 

 

 

 

 

 

CAB, Series A, 6.40%, 8/01/35 (a)

 

 

10,000

 

 

2,124,100

 

First Sub-Series A, 6.50%, 8/01/44

 

 

2,790

 

 

3,151,891

 

 

 

 

 

 




 

 

 

 

 

 

8,124,582

 









Tennessee — 1.6%

 

 

 

 

 

 

 

Hardeman County Correctional Facilities Corp.
Tennessee, RB, Series B, 7.38%, 8/01/17

 

 

2,200

 

 

2,091,826

 

Rutherford County Health & Educational Facilities
Board, RB, Ascension Health Senior Credit Group,
5.00%, 11/15/40

 

 

510

 

 

519,287

 

 

 

 

 

 




 

 

 

 

 

 

2,611,113

 









Texas — 9.5%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, TXU Electric Co.
Project, Series C, AMT, 5.75%, 5/01/36

 

 

1,680

 

 

1,633,128

 

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

 

 

2,500

 

 

2,539,775

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Texas (concluded)

 

 

 

 

 

 

 

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

 

$

775

 

$

825,801

 

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

 

 

1,380

 

 

1,555,495

 

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

 

 

590

 

 

608,697

 

Matagorda County Hospital District Texas, RB (FHA),
5.00%, 2/15/35

 

 

3,265

 

 

3,178,771

 

North Texas Tollway Authority, RB, Toll, 2nd Tier, Series F,
6.13%, 1/01/31

 

 

3,020

 

 

3,220,951

 

Texas Private Activity Bond Surface Transportation Corp.,
RB, Senior Lien, Note Mobility, 6.88%, 12/31/39

 

 

1,940

 

 

2,026,757

 

 

 

 

 

 




 

 

 

 

 

 

15,589,375

 









U.S. Virgin Islands — 1.7%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT,
6.50%, 7/01/21

 

 

2,680

 

 

2,714,947

 









Utah — 0.9%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,423,842

 









Vermont — 0.6%

 

 

 

 

 

 

 

Vermont Educational & Health Buildings Financing
Agency, RB, Developmental & Mental Health, Series A,
6.50%, 6/15/32

 

 

1,000

 

 

947,270

 









Virginia — 4.0%

 

 

 

 

 

 

 

Chesterfield County IDA, Refunding RB, Virginia Electric
& Power Co., Series A, 5.88%, 6/01/17

 

 

425

 

 

438,554

 

Tobacco Settlement Financing Corp. Virginia, Refunding
RB, Senior Series B1, 5.00%, 6/01/47

 

 

3,570

 

 

2,457,338

 

Virginia HDA, RB, Series D, AMT, 6.00%, 4/01/24

 

 

3,200

 

 

3,209,664

 

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

 

 

485

 

 

494,952

 

 

 

 

 

 




 

 

 

 

 

 

6,600,508

 









Washington — 0.5%

 

 

 

 

 

 

 

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

 

 

945

 

 

877,999

 









Wisconsin — 4.9%

 

 

 

 

 

 

 

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

 

 

3,620

 

 

4,023,992

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,235

 

 

1,258,440

 

SynergyHealth Inc., 6.00%, 11/15/32

 

 

1,360

 

 

1,399,413

 

Wisconsin Housing & EDA, Refunding RB, Series C, AMT,
4.88%, 3/01/36

 

 

1,370

 

 

1,295,842

 

 

 

 

 

 




 

 

 

 

 

 

7,977,687

 









Total Municipal Bonds — 116.4%

 

 

 

 

 

190,661,570

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

 

 

 

 

 









California — 6.6%

 

 

 

 

 

 

 

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

 

 

1,640

 

 

1,785,858

 

California Educational Facilities Authority, RB, University
of Southern California, Series A, 5.25%, 10/01/18

 

 

1,335

 

 

1,431,547

 

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

 

 

1,170

 

 

1,197,776

 


 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2010

35




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

Par
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 

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

 

$

553

 

$

581,119

 

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

 

 

5,519

 

 

5,770,720

 

 

 

 

 

 




 

 

 

 

 

 

10,767,020

 









Colorado — 2.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series C-3, 5.10%, 10/01/41

 

 

1,870

 

 

1,882,193

 

Series C-7, 5.00%, 9/01/36

 

 

1,200

 

 

1,206,288

 

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

 

 

1,080

 

 

1,145,053

 

 

 

 

 

 




 

 

 

 

 

 

4,233,534

 









Connecticut — 3.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series T-1, 4.70%, 7/01/29

 

 

2,300

 

 

2,412,838

 

Series X-3, 4.85%, 7/01/37

 

 

2,370

 

 

2,470,038

 

 

 

 

 

 




 

 

 

 

 

 

4,882,876

 









Georgia — 1.1%

 

 

 

 

 

 

 

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

 

 

1,649

 

 

1,730,727

 









Massachusetts — 1.9%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

2,999

 

 

3,141,025

 









New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

1,019

 

 

1,106,884

 









New York — 2.7%

 

 

 

 

 

 

 

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

 

 

810

 

 

900,552

 

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

 

 

3,200

 

 

3,566,627

 

 

 

 

 

 




 

 

 

 

 

 

4,467,179

 









North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

 

800

 

 

846,056

 









Ohio — 4.4%

 

 

 

 

 

 

 

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

 

 

6,980

 

 

7,292,495

 









Tennessee — 1.6%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,585,575

 









Texas — 2.1%

 

 

 

 

 

 

 

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

 

 

3,360

 

 

3,475,886

 









Virginia — 7.7%

 

 

 

 

 

 

 

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

 

 

2,730

 

 

2,889,842

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC):

 

 

 

 

 

 

 

5.35%, 7/01/31

 

 

1,725

 

 

1,740,818

 

5.38%, 7/01/36

 

 

7,900

 

 

7,960,356

 

 

 

 

 

 




 

 

 

 

 

 

12,591,016

 









Washington — 0.9%

 

 

 

 

 

 

 

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

 

 

1,365

 

 

1,436,169

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

Par
(000)

 

Value

 







Wisconsin — 1.8%

 

 

 

 

 

 

 

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

 

$

2,859

 

$

2,928,783

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 37.6%

 

 

 

 

 

61,485,225

 









Total Long-Term Investments
(Cost — $245,353,975) — 154.0%

 

 

 

 

 

252,146,795

 










 

 

 

 

 

 

 

 









 

Short-Term Securities

 

Shares

 

 

 

 








FFI Institutional Tax-Exempt Fund, 0.25% (d)(e)

 

 

607,735

 

 

607,735

 








Total Short-Term Securities
(Cost — $607,735) — 0.4%

 

 

 

 

 

607,735

 









Total Investments (Cost — $245,961,710*) — 154.4%

 

 

 

 

 

252,754,530

 

Liabilities in Excess of Other Assets — (1.2)%

 

 

 

 

 

(1,932,789

)

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (19.6)%

 

 

 

 

 

(32,045,568

)

Preferred Shares, at Redemption Value — (33.6)%

 

 

 

 

 

(55,054,350

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

163,721,823

 

 

 

 

 

 




 

 



*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

213,239,936

 

 

 

 




 

Gross unrealized appreciation

 

$

10,905,972

 

 

Gross unrealized depreciation

 

 

(3,411,172

)

 

 

 




 

Net unrealized appreciation

 

$

7,494,800

 

 

 

 





 

 

(a)

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

 

 

(b)

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


 

 

 

 

 

 

 

 

 

 









 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 







 

Goldman Sachs Bank USA

 

$

1,993,219

 

$

11,531

 

 










 

 

(c)

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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(d)

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 











 

Affiliate

 

Shares
Held at
April 30,
2009

 

Net
Activity

 

Shares
Held at
April 30,
2010

 

Income

 

 











 

FFI Institutional Tax-Exempt Fund

 

 

112,826

 

 

494,909

 

 

607,735

 

$

8,405

 

 
















 

 

(e)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.

 




36

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund II, Inc. (MUH)


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

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

 

 

 

 

The inputs or methodologies 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 Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of April 30, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

 

Investments in Securities

 

 





 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 











 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

252,146,795

 

 

 

$

252,146,795

 

 

Short-Term Securities

 

$

607,735

 

 

 

 

 

 

607,735

 

 

 

 













 

Total

 

$

607,735

 

$

252,146,795

 

 

 

$

252,754,530

 

 

 

 














 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2010

37




 

 


 

 

Schedule of Investments April 30, 2010

BlackRock MuniHoldings Insured Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 2.6%

 

 

 

 

 

 

 

Birmingham Special Care Facilities Financing Authority,
RB, Children’s Hospital (AGC), 6.00%, 6/01/39

 

$

2,330

 

$

2,529,541

 

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

 

 

2,170

 

 

1,868,739

 

 

 

 

 

 




 

 

 

 

 

 

4,398,280

 









Arizona — 0.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 10/01/28

 

 

715

 

 

741,870

 

5.00%, 10/01/29

 

 

185

 

 

187,490

 

 

 

 

 

 




 

 

 

 

 

 

929,360

 









Arkansas — 3.7%

 

 

 

 

 

 

 

Arkansas Development Finance Authority, Refunding RB,
FHA Insured Mortgage Loan, Series C (NPFGC),
5.35%, 12/01/35

 

 

6,220

 

 

6,280,894

 









California — 14.1%

 

 

 

 

 

 

 

California State Public Works Board, RB, Department of
General Services, Capital East End Complex, Series A
(AMBAC), 5.00%, 12/01/27

 

 

2,000

 

 

1,942,960

 

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

 

 

1,325

 

 

1,420,109

 

City of Vista California, COP, Refunding, Community
Projects (NPFGC), 5.00%, 5/01/37

 

 

3,600

 

 

3,367,512

 

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

 

 

2,100

 

 

2,202,564

 

East Side Union High School District-Santa Clara
County California, GO, Election of 2002, Series B
(NPFGC), 5.00%, 8/01/27

 

 

1,800

 

 

1,817,604

 

Modesto Schools Infrastructure Financing Agency,
Special Tax Bonds (AMBAC), 5.50%, 9/01/36

 

 

2,565

 

 

2,342,435

 

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

 

 

1,825

 

 

1,879,020

 

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

 

 

 

 

 

 

 

5.66%, 12/01/24

 

 

2,635

 

 

1,097,003

 

5.66%, 12/01/25

 

 

2,355

 

 

917,555

 

5.66%, 12/01/26

 

 

2,355

 

 

852,651

 

Santa Ana Unified School District, GO (NPFGC),
5.00%, 8/01/32

 

 

2,875

 

 

2,877,817

 

West Contra Costa Unified School District California,
GO, Election of 2000, Series C (NPFGC),
5.00%, 8/01/21

 

 

3,480

 

 

3,540,378

 

 

 

 

 

 




 

 

 

 

 

 

24,257,608

 









Colorado — 1.2%

 

 

 

 

 

 

 

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

 

 

1,900

 

 

2,109,760

 









District of Columbia — 0.2%

 

 

 

 

 

 

 

District of Columbia, RB, Deed Tax, Housing Production
Trust Fund, Series A (NPFGC), 5.00%, 6/01/32

 

 

400

 

 

401,404

 









Florida — 14.4%

 

 

 

 

 

 

 

City of Orlando Florida, RB, Senior, 6th Cent Contract
Payments, Series A (AGC), 5.25%, 11/01/38

 

 

2,000

 

 

2,009,840

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.24%, 10/01/37 (a)

 

 

1,625

 

 

260,926

 

Miami International Airport, Series A, AMT (AGM),
5.50%, 10/01/41

 

 

3,900

 

 

3,944,304

 

Water & Sewer System, (AGM), 5.00%, 10/01/39

 

 

6,640

 

 

6,802,348

 

County of Miami-Dade Florida, Refunding RB, Water &
Sewer System (AGM), 5.00%, 10/01/29

 

 

1,565

 

 

1,611,074

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Florida (concluded)

 

 

 

 

 

 

 

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

 

$

2,215

 

$

2,270,685

 

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

 

 

7,395

 

 

7,879,890

 

 

 

 

 

 




 

 

 

 

 

 

24,779,067

 









Georgia — 5.1%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB (AGM),
5.25%, 10/01/39

 

 

3,495

 

 

3,634,345

 

Gwinnett County Hospital Authority, Refunding RB,
Gwinnett Hospital System, Series D (AGM),
5.50%, 7/01/41

 

 

2,075

 

 

2,109,196

 

Metropolitan Atlanta Rapid Transit Authority, RB, Third
Indenture, Series B (AGM), 5.00%, 7/01/34

 

 

2,940

 

 

3,080,444

 

 

 

 

 

 




 

 

 

 

 

 

8,823,985

 









Illinois — 12.7%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,345,044

 

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

 

 

2,000

 

 

2,294,440

 

City of Chicago Illinois, GO, Refunding, Projects,
Series A (AGM):

 

 

 

 

 

 

 

5.00%, 1/01/28

 

 

1,405

 

 

1,480,912

 

5.00%, 1/01/29

 

 

2,180

 

 

2,281,980

 

5.00%, 1/01/30

 

 

870

 

 

905,827

 

City of Chicago Illinois, RB (AGM):

 

 

 

 

 

 

 

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

 

 

1,255

 

 

1,299,176

 

Series A, 5.00%, 1/01/33

 

 

8,000

 

 

8,162,880

 

City of Chicago Illinois, Refunding RB, Second Lien
(NPFGC), 5.50%, 1/01/30

 

 

1,310

 

 

1,445,258

 

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

 

 

2,500

 

 

2,656,225

 

 

 

 

 

 




 

 

 

 

 

 

21,871,742

 









Indiana — 4.4%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

6,016,440

 

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

 

 

1,430

 

 

1,543,342

 

 

 

 

 

 




 

 

 

 

 

 

7,559,782

 









Iowa — 1.1%

 

 

 

 

 

 

 

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

 

 

1,770

 

 

1,825,171

 









Kentucky — 0.8%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority, RB,
Louisville Arena, Sub-Series A-1 (AGC),
6.00%, 12/01/38

 

 

320

 

 

347,030

 

Kentucky State Property & Buildings Commission,
Refunding RB, Project No. 93 (AGC),
5.25%, 2/01/29

 

 

1,000

 

 

1,079,980

 

 

 

 

 

 




 

 

 

 

 

 

1,427,010

 









Louisiana — 1.3%

 

 

 

 

 

 

 

Louisiana State Citizens Property Insurance Corp., RB,
Series C-3 (AGC), 6.13%, 6/01/25

 

 

2,055

 

 

2,280,495

 









Maine — 1.0%

 

 

 

 

 

 

 

City of Portland Maine, RB, General (AGM),
5.25%, 1/01/35

 

 

1,680

 

 

1,722,134

 










 

 

 

See Notes to Financial Statements.

 




38

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Massachusetts — 3.6%

 

 

 

 

 

 

 

Massachusetts Bay Transportation Authority, Refunding
RB, Senior Series A, 5.00%, 7/01/10 (b)

 

$

3,375

 

$

3,401,831

 

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

 

 

2,440

 

 

2,461,106

 

Massachusetts HFA, Refunding RB, Housing
Development, Series A, AMT (NPFGC),
5.15%, 6/01/11

 

 

315

 

 

315,523

 

 

 

 

 

 




 

 

 

 

 

 

6,178,460

 









Michigan — 14.8%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Second Lien, Series B:

 

 

 

 

 

 

 

(AGM), 7.50%, 7/01/33

 

 

1,000

 

 

1,200,760

 

(NPFGC), 5.50%, 7/01/29

 

 

2,410

 

 

2,425,520

 

City of Detroit Michigan, Refunding RB, Second Lien:

 

 

 

 

 

 

 

Series C (BHAC), 5.75%, 7/01/27

 

 

1,580

 

 

1,708,043

 

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

 

 

4,810

 

 

5,602,640

 

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

 

 

1,910

 

 

1,945,411

 

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

 

 

3,240

 

 

3,434,530

 

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

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

875

 

 

933,695

 

5.25%, 10/15/25

 

 

455

 

 

482,123

 

Michigan Strategic Fund, Refunding RB, AMT, Detroit
Edison Co. (Syncora):

 

 

 

 

 

 

 

Pollution, Series B, 5.65%, 9/01/29

 

 

1,500

 

 

1,498,125

 

Pollution, Series C, 5.65%, 9/01/29

 

 

2,050

 

 

2,047,438

 

Project, Series A, 5.50%, 6/01/30

 

 

2,000

 

 

1,920,080

 

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

 

 

1,910

 

 

2,254,430

 

 

 

 

 

 




 

 

 

 

 

 

25,452,795

 









Minnesota — 0.9%

 

 

 

 

 

 

 

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

 

 

1,325

 

 

1,486,226

 









Missouri — 3.3%

 

 

 

 

 

 

 

Mehlville School District No. R-9 Missouri, COP, Series A
(AGM) (b):

 

 

 

 

 

 

 

5.50%, 3/01/11

 

 

1,565

 

 

1,632,279

 

5.50%, 3/01/11

 

 

1,770

 

 

1,846,092

 

5.50%, 3/01/11

 

 

955

 

 

996,056

 

5.50%, 3/01/11

 

 

1,220

 

 

1,272,448

 

 

 

 

 

 




 

 

 

 

 

 

5,746,875

 









Nevada — 3.1%

 

 

 

 

 

 

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

3,510

 

 

3,573,671

 

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

 

 

1,750

 

 

1,720,075

 

 

 

 

 

 




 

 

 

 

 

 

5,293,746

 









New Jersey — 7.5%

 

 

 

 

 

 

 

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

 

 

6,700

 

 

6,819,863

 

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

 

 

2,100

 

 

2,227,050

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series A (AGC),
5.63%, 12/15/28

 

 

3,500

 

 

3,903,130

 

 

 

 

 

 




 

 

 

 

 

 

12,950,043

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York — 6.1%

 

 

 

 

 

 

 

City of New York New York, GO, Series E (AGM),
5.00%, 11/01/17

 

$

4,000

 

$

4,366,840

 

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

 

 

1,400

 

 

1,486,268

 

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

 

 

4,095

 

 

4,563,796

 

 

 

 

 

 




 

 

 

 

 

 

10,416,904

 









Oregon — 0.4%

 

 

 

 

 

 

 

Medford Hospital Facilities Authority, RB, Asante Health
System, Series A (AGC), 5.00%, 8/15/40

 

 

710

 

 

712,102

 









Puerto Rico — 1.4%

 

 

 

 

 

 

 

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

 

 

2,115

 

 

2,374,785

 









Texas — 17.8%

 

 

 

 

 

 

 

City of Dallas Texas, Refunding RB (AGC),
5.25%, 8/15/38

 

 

1,250

 

 

1,288,837

 

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

 

 

4,000

 

 

4,588,800

 

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

 

 

600

 

 

676,302

 

Lower Colorado River Authority, Refunding RB, LCRA
Transmission Services Project (AGC),
5.50%, 5/15/36

 

 

2,610

 

 

2,764,277

 

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

 

 

775

 

 

830,684

 

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

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

6,710

 

 

7,022,485

 

Series A, 5.63%, 1/01/33

 

 

6,585

 

 

6,890,939

 

Series B, 5.75%, 1/01/40

 

 

6,275

 

 

6,567,227

 

 

 

 

 

 




 

 

 

 

 

 

30,629,551

 









Utah — 1.5%

 

 

 

 

 

 

 

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

 

 

2,485

 

 

2,527,320

 









Virginia — 1.0%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,733,595

 









Washington — 2.5%

 

 

 

 

 

 

 

Chelan County Public Utility District No. 1, RB, Chelan
Hydro System, Series A, AMT (AMBAC),
5.45%, 7/01/37

 

 

2,310

 

 

2,283,989

 

Snohomish County Public Utility District No. 1
Washington, RB (AGM), 5.50%, 12/01/22

 

 

1,810

 

 

1,945,497

 

 

 

 

 

 




 

 

 

 

 

 

4,229,486

 









Total Municipal Bonds — 127.0%

 

 

 

 

 

218,398,580

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

 

 

 

 

 









California — 2.7%

 

 

 

 

 

 

 

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

 

 

1,258

 

 

1,299,371

 

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

 

 

3,149

 

 

3,293,074

 

 

 

 

 

 




 

 

 

 

 

 

4,592,445

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

39




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Insured Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

Par
(000)

 

Value

 







Colorado — 3.3%

 

 

 

 

 

 

 

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

 

$

5,610

 

$

5,646,577

 









District of Columbia — 0.7%

 

 

 

 

 

 

 

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

 

 

1,040

 

 

1,171,740

 









Florida — 8.4%

 

 

 

 

 

 

 

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

 

 

4,302

 

 

4,324,093

 

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

 

 

7,500

 

 

8,326,350

 

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

 

 

1,590

 

 

1,721,716

 

 

 

 

 

 




 

 

 

 

 

 

14,372,159

 









Georgia — 2.4%

 

 

 

 

 

 

 

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

 

 

4,000

 

 

4,172,560

 









Illinois — 1.5%

 

 

 

 

 

 

 

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

 

 

2,509

 

 

2,655,529

 









Kentucky — 0.9%

 

 

 

 

 

 

 

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

 

 

1,406

 

 

1,519,255

 









Massachusetts — 4.9%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

8,008

 

 

8,386,537

 









Nevada — 5.7%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

5,000

 

 

5,598,250

 

Series B, 5.50%, 7/01/29

 

 

3,749

 

 

4,113,429

 

 

 

 

 

 




 

 

 

 

 

 

9,711,679

 









New Jersey — 1.4%

 

 

 

 

 

 

 

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

 

 

2,401

 

 

2,474,690

 









Virginia — 0.9%

 

 

 

 

 

 

 

Virginia HDA, RB, Sub-Series H-1 (NPFGC),
5.35%, 7/01/31

 

 

1,500

 

 

1,513,755

 









Washington — 2.5%

 

 

 

 

 

 

 

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

 

 

4,002

 

 

4,374,478

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 35.3%

 

 

 

 

 

60,591,404

 









Total Long-Term Investments
(Cost — $271,246,767) — 162.3%

 

 

 

 

 

278,989,984

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








FFI Institutional Tax-Exempt Fund, 0.25% (d)(e)

 

 

8,653,666

 

 

8,653,666

 









Total Short-Term Securities
(Cost — $8,653,666) — 5.0%

 

 

 

 

 

8,653,666

 









Total Investments (Cost — $279,900,433*) — 167.3%

 

 

 

 

 

287,643,650

 

Other Assets Less Liabilities — 1.9%

 

 

 

 

 

3,320,477

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (18.6)%

 

 

 

 

 

(31,981,744

)

Preferred Shares, at Redemption Value — (50.6)%

 

 

 

 

 

(87,005,179

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

171,977,204

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

247,898,349

 

 

 

 




 

Gross unrealized appreciation

 

$

9,673,939

 

 

Gross unrealized depreciation

 

 

(1,884,052

)

 

 

 




 

Net unrealized appreciation

 

$

7,789,887

 

 

 

 





 

 

(a)

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

 

 

(b)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(c)

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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(d)

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


 

 

 

 

 

 

 

 

 

 

 

 

 












 

Affiliate

 

Shares
Held at
April 30,
2009

 

Net
Activity

 

Shares
Held at
April 30,
2010

 

Income

 

 












 

FFI Institutional Tax-Exempt Fund

 

15,326,703

 

(6,673,037)

 

8,653,666

 

$

28,477

 

 













 

 

(e)

Represents the current yield as of report date.


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

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

The inputs or methodologies 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 Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of April 30, 2010 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Investments in Securities

 





Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

278,989,984

 

 

 

$

278,989,984

 

Short-Term Securities

 

$

8,653,666

 

 

 

 

 

 

8,653,666

 

 

 













Total

 

$

8,653,666

 

$

278,989,984

 

 

 

$

287,643,650

 

 

 














 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.

 




40

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Schedule of Investments April 30, 2010

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 2.7%

 

 

 

 

 

 

 

Birmingham Special Care Facilities Financing Authority,
RB, Children’s Hospital (AGC), 6.00%, 6/01/34

 

$

4,615

 

$

5,015,167

 

County of Jefferson Alabama, RB, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/21

 

 

5,500

 

 

4,791,655

 

5.25%, 1/01/23

 

 

6,500

 

 

5,434,975

 

 

 

 

 

 




 

 

 

 

 

 

15,241,797

 









Arizona — 4.6%

 

 

 

 

 

 

 

City of Tucson Arizona, COP (AGC):

 

 

 

 

 

 

 

4.25%, 7/01/21

 

 

1,870

 

 

1,904,071

 

4.25%, 7/01/22

 

 

1,895

 

 

1,911,392

 

4.50%, 7/01/24

 

 

2,120

 

 

2,143,723

 

City of Tucson Arizona, COP, Refunding (AGC), 4.00%,
7/01/20

 

 

2,325

 

 

2,345,367

 

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

 

 

2,820

 

 

2,172,669

 

Pima County IDA, RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project, Series C, 6.70%,
7/01/21

 

 

975

 

 

975,029

 

Charter Schools, Series K, 6.38%, 7/01/13 (a)

 

 

820

 

 

949,068

 

Charter Schools, Series K, 6.38%, 7/01/31

 

 

930

 

 

857,079

 

Pima County IDA, Refunding RB, Tucson Electric
Power Co., San Juan, Series A, 4.95%, 10/01/20

 

 

2,325

 

 

2,349,436

 

Salt River Project Agricultural Improvement & Power
District, RB, Series A, 5.00%, 1/01/25

 

 

4,000

 

 

4,366,600

 

State of Arizona, COP, Department of Administration,
Series A (AGM), 4.25%, 10/01/23

 

 

2,750

 

 

2,707,072

 

Vistancia Community Facilities District Arizona, GO,
5.00%, 7/15/14

 

 

3,135

 

 

3,247,766

 

 

 

 

 

 




 

 

 

 

 

 

25,929,272

 









California — 16.8%

 

 

 

 

 

 

 

Antelope Valley Healthcare District California, RB,
Series A, 5.25%, 9/01/17 (b)

 

 

8,000

 

 

7,894,160

 

California HFA, RB, Home Mortgage, Series K, AMT,
4.55%, 8/01/21

 

 

4,200

 

 

3,816,834

 

California HFA, Refunding RB, Home Mortgage, Series M,
AMT, 4.55%, 8/01/21

 

 

7,210

 

 

6,552,232

 

California Pollution Control Financing Authority, RB, AMT:

 

 

 

 

 

 

 

Republic Services Inc. Project, Series B, 5.25%,
6/01/23

 

 

605

 

 

612,520

 

Waste Management Inc. Project, Series A-2,
5.40%, 4/01/25

 

 

1,240

 

 

1,254,954

 

California Pollution Control Financing Authority,
Refunding RB, Pacific Gas, Series C, AMT (FGIC),
4.75%, 12/01/23

 

 

9,035

 

 

8,824,304

 

California State Public Works Board, RB, Department of
Corrections, Series C, 5.50%, 6/01/20

 

 

10,000

 

 

10,301,600

 

California Statewide Communities Development
Authority, RB, Health Facility, Memorial Health
Services, Series A, 6.00%, 10/01/23

 

 

2,500

 

 

2,608,375

 

City of Sacramento California, Special Tax Bonds, North
Natomas Community Facilities, Series 4-C:

 

 

 

 

 

 

 

5.60%, 9/01/20

 

 

585

 

 

578,986

 

5.75%, 9/01/22

 

 

1,715

 

 

1,696,958

 

5.90%, 9/01/23

 

 

500

 

 

499,495

 

6.00%, 9/01/28

 

 

2,990

 

 

2,969,997

 

Golden State Tobacco Securitization Corp. California,
Refunding RB, Asset-Backed, Senior Series A-1,
5.00%, 6/01/15

 

 

5,000

 

 

5,126,050

 

Los Angeles Regional Airports Improvement Corp.,
California, Refunding RB, Facilities, LAXFUEL Corp.,
LA International, AMT (AMBAC), 5.50%, 1/01/32

 

 

1,435

 

 

1,390,745

 

Rowland Unified School District California, GO,
Election of 2000, Series B (AGM), 5.25%, 8/01/27

 

 

1,515

 

 

1,561,859

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 

State of California, GO:

 

 

 

 

 

 

 

5.50%, 4/01/14 (a)

 

$

14,795

 

$

17,146,517

 

5.50%, 4/01/28

 

 

15

 

 

15,430

 

(NPFGC), 5.25%, 2/01/27

 

 

5,000

 

 

5,058,250

 

Various Purpose, 5.25%, 10/01/21

 

 

2,550

 

 

2,761,191

 

Various Purpose, 6.00%, 11/01/39

 

 

10,000

 

 

10,931,000

 

Tustin Unified School District California, Special Tax
Bonds, Senior Lien, Community Facilities
District 97-1, Series A (AGM), 5.00%, 9/01/32

 

 

2,610

 

 

2,606,346

 

 

 

 

 

 




 

 

 

 

 

 

94,207,803

 









Colorado — 2.0%

 

 

 

 

 

 

 

Elk Valley Public Improvement Corp., RB, Public
Improvement Fee, Series A, 7.10%, 9/01/14

 

 

700

 

 

714,819

 

Montrose Memorial Hospital, RB, 6.38%, 12/01/23

 

 

2,250

 

 

2,291,535

 

Plaza Metropolitan District No. 1 Colorado, Tax
Allocation Bonds, Public Improvement Fee, Tax
Increment, 7.50%, 12/01/15

 

 

7,500

 

 

7,418,850

 

Southlands Metropolitan District No. 1, GO, 6.75%,
12/01/14 (a)

 

 

930

 

 

1,082,362

 

 

 

 

 

 




 

 

 

 

 

 

11,507,566

 









Connecticut — 0.2%

 

 

 

 

 

 

 

Connecticut State Development Authority, RB,
Learjet Inc. Project, AMT, 7.95%, 4/01/26 (b)

 

 

1,160

 

 

1,252,719

 









Florida — 5.4%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB, Miami International
Airport, AMT (NPFGC), 5.75%, 10/01/19

 

 

5,500

 

 

5,644,925

 

County of Miami-Dade Florida, Refunding RB, Series C
(BHAC), 5.00%, 10/01/23

 

 

8,000

 

 

8,684,160

 

Harbor Bay Community Development District Florida,
Special Assessment Bonds, 6.75%, 5/01/34

 

 

2,770

 

 

1,915,455

 

Highlands County Health Facilities Authority, Refunding
RB, Adventist Health, Series G, 5.13%, 11/15/16 (a)

 

 

35

 

 

40,673

 

Midtown Miami Community Development District,
Special Assessment Bonds:

 

 

 

 

 

 

 

Series A, 6.00%, 5/01/24

 

 

3,190

 

 

3,058,923

 

Series B, 6.50%, 5/01/37

 

 

1,925

 

 

1,865,575

 

Panther Trace II Community Development District,
Special Assessment Bonds, Special Assessment,
5.13%, 11/01/13

 

 

2,005

 

 

1,634,336

 

Portofino Shores Community Development District,
Special Assessment Bonds, Series A, 6.40%,
5/01/34

 

 

1,085

 

 

1,056,497

 

South Lake County Hospital District, RB, South Lake
Hospital Inc., 6.63%, 10/01/23

 

 

2,390

 

 

2,466,623

 

Sterling Hill Community Development District, Special
Assessment Bonds, Refunding, Series B, 5.50%,
11/01/10

 

 

160

 

 

139,200

 

University of Florida Research Foundation Inc., RB
(AMBAC), 5.13%, 9/01/33

 

 

4,000

 

 

3,600,160

 

 

 

 

 

 




 

 

 

 

 

 

30,106,527

 









Georgia — 0.8%

 

 

 

 

 

 

 

Fulton County Development Authority, Refunding RB,
Robert Woodruff, Series B, 5.25%, 3/15/24

 

 

4,000

 

 

4,268,560

 









Guam — 0.8%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A, 6.00%, 11/15/19

 

 

1,530

 

 

1,583,871

 

Territory of Guam, RB, Section 30, Series A, 5.38%,
12/01/24

 

 

2,620

 

 

2,654,139

 

 

 

 

 

 




 

 

 

 

 

 

4,238,010

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

41




 

 



 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Idaho — 0.1%

 

 

 

 

 

 

 

University of Idaho, RB, General, Series B, 5.00%,
4/01/32

 

$

400

 

$

415,196

 









Illinois — 8.1%

 

 

 

 

 

 

 

City of Chicago Illinois, ARB, General, 3rd Lien,
Series B-2, AMT:

 

 

 

 

 

 

 

(AGM), 5.75%, 1/01/23

 

 

8,130

 

 

8,441,785

 

(Syncora), 6.00%, 1/01/29

 

 

7,510

 

 

7,809,349

 

City of Chicago Illinois, Refunding ARB, General,
3rd Lien, Series A-2, AMT (AGM), 5.75%, 1/01/19

 

 

2,550

 

 

2,690,939

 

Du Page & Will Counties Community School District
No. 204 Indian, GO, School Building, Series A
(NPFGC), 5.25%, 12/30/22

 

 

8,650

 

 

9,521,141

 

Du Page County Forest Preservation District Illinois,
GO, Refunding, Series A, 3.50%, 11/01/24

 

 

3,000

 

 

2,891,580

 

Illinois Finance Authority, RB, Community Rehabilitation
Providers Facilities, Series A, 6.63%, 7/01/12 (a)

 

 

6,930

 

 

6,964,165

 

Village of Hodgkins Illinois, RB, MBM Project, AMT,
5.90%, 11/01/17

 

 

6,000

 

 

6,003,180

 

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

 

 

1,560

 

 

1,423,516

 

 

 

 

 

 




 

 

 

 

 

 

45,745,655

 









Indiana — 0.4%

 

 

 

 

 

 

 

County of Jasper Indiana, Refunding RB, Northern
Indiana Public Service Co., Series C (NPFGC),
5.85%, 4/01/19 (b)

 

 

2,000

 

 

2,173,660

 









Kansas — 0.9%

 

 

 

 

 

 

 

City of Dodge City Kansas, RB (AGC), 4.00%, 6/01/24

 

 

2,245

 

 

2,248,682

 

Kansas Development Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Adventist Health, 5.00%, 11/15/23

 

 

1,500

 

 

1,577,850

 

Adventist/Sunbelt, Series D, 5.00%, 11/15/24

 

 

1,000

 

 

1,031,660

 

 

 

 

 

 




 

 

 

 

 

 

4,858,192

 









Kentucky — 3.1%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 5.25%, 6/01/23

 

 

8,650

 

 

8,433,923

 

Kentucky State Property & Buildings Commission,
Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/24

 

 

8,000

 

 

8,792,640

 

 

 

 

 

 




 

 

 

 

 

 

17,226,563

 









Louisiana — 2.7%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority, RB (NPFGC):

 

 

 

 

 

 

 

Nineteenth Judicial District Court, 5.50%, 6/01/41

 

 

2,000

 

 

2,062,560

 

University of New Orleans Research & Technology,
5.25%, 3/01/26

 

 

6,965

 

 

7,176,179

 

New Orleans Aviation Board Louisiana, Refunding RB,
Restructuring GARB, Series A-2 (AGC), 6.00%,
1/01/23

 

 

850

 

 

966,118

 

Port of New Orleans Louisiana, Refunding RB,
Continental Grain Co. Project, 6.50%, 1/01/17

 

 

5,000

 

 

4,986,100

 

 

 

 

 

 




 

 

 

 

 

 

15,190,957

 









Maine — 0.3%

 

 

 

 

 

 

 

Portland New Public Housing Authority Maine,
Refunding RB, Senior Living, Series A, 6.00%, 2/01/34

 

 

1,965

 

 

1,883,315

 









Maryland — 0.4%

 

 

 

 

 

 

 

Maryland EDC, RB, Transportation Facilities Project,
Series A, 5.13%, 6/01/20

 

 

1,750

 

 

1,764,332

 

Maryland Industrial Development Financing Authority,
RB, Our Lady of Good Counsel School, Series A,
6.00%, 5/01/35

 

 

500

 

 

474,025

 

 

 

 

 

 




 

 

 

 

 

 

2,238,357

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Massachusetts — 0.5%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB,
Ogden Haverhill Project, Series B, AMT:

 

 

 

 

 

 

 

5.35%, 12/01/15

 

$

1,210

 

$

1,125,772

 

5.50%, 12/01/19

 

 

2,000

 

 

1,865,720

 

 

 

 

 

 




 

 

 

 

 

 

2,991,492

 









Michigan — 3.9%

 

 

 

 

 

 

 

City of Detroit Michigan, Refunding RB, Second Lien,
Series C (BHAC), 5.75%, 7/01/26

 

 

4,235

 

 

4,587,225

 

Michigan State Hospital Finance Authority,
Refunding RB:

 

 

 

 

 

 

 

Hospital, Henry Ford Health, 5.25%, 11/15/24

 

 

4,900

 

 

4,811,947

 

Hospital, Oakwood Obligation Group, Series A,
6.00%, 4/01/22

 

 

4,795

 

 

4,913,053

 

Wayne County Airport Authority, RB, Detroit Metropolitan
Wayne County Airport, AMT (AGC), 4.75%, 12/01/18

 

 

7,665

 

 

7,485,179

 

 

 

 

 

 




 

 

 

 

 

 

21,797,404

 









Minnesota — 1.4%

 

 

 

 

 

 

 

City of St. Cloud Minnesota, RB, CentraCare Health
System, Series A, 4.25%, 5/01/21

 

 

2,300

 

 

2,229,160

 

Minneapolis & St. Paul Housing & Redevelopment
Authority, RB, HealthPartners Obligation
Group Project:

 

 

 

 

 

 

 

6.00%, 12/01/19

 

 

1,000

 

 

1,031,450

 

6.00%, 12/01/21

 

 

2,545

 

 

2,605,673

 

Minnesota State Municipal Power Agency, RB, Series A,
5.25%, 10/01/24

 

 

2,000

 

 

2,080,560

 

 

 

 

 

 




 

 

 

 

 

 

7,946,843

 









Mississippi — 1.7%

 

 

 

 

 

 

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project:

 

 

 

 

 

 

 

5.88%, 4/01/22

 

 

5,000

 

 

4,977,700

 

5.90%, 5/01/22

 

 

2,910

 

 

2,905,053

 

Mississippi Hospital Equipment & Facilities Authority,
Refunding RB, Baptist Memorial Healthcare,
Series B2, 4.50%, 9/01/23

 

 

1,500

 

 

1,522,785

 

 

 

 

 

 




 

 

 

 

 

 

9,405,538

 









Missouri — 1.6%

 

 

 

 

 

 

 

Missouri State Health & Educational Facilities Authority,
RB, SSM Health Care, Series B, 4.25%, 6/01/25 (c)

 

 

9,125

 

 

8,847,600

 









Nebraska — 1.5%

 

 

 

 

 

 

 

Douglas County Hospital Authority No. 2, RB, Health
Facilities, Immanuel Obligation Group, 5.50%,
1/01/30

 

 

500

 

 

498,175

 

Douglas County School District No. 17 Nebraska,
GO, Refunding (c):

 

 

 

 

 

 

 

2.00%, 6/15/24

 

 

4,390

 

 

3,381,134

 

2.00%, 6/15/25

 

 

4,480

 

 

3,338,630

 

Lancaster County Hospital Authority No. 1, RB,
Immanuel Obligation Group, 5.50%, 1/01/30

 

 

1,000

 

 

999,920

 

 

 

 

 

 




 

 

 

 

 

 

8,217,859

 









Nevada — 1.2%

 

 

 

 

 

 

 

County of Clark Nevada, Special Assessment Bonds,
Special Improvement District No. 142, Local
Improvement, 6.38%, 8/01/23

 

 

2,130

 

 

2,014,192

 

County of Humboldt Nevada, Refunding RB, Idaho
Power Co. Project, 5.15%, 12/01/24

 

 

4,300

 

 

4,473,806

 

 

 

 

 

 




 

 

 

 

 

 

6,487,998

 










 

 

 

See Notes to Financial Statements.

 

 




42

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New Jersey — 12.1%

 

 

 

 

 

 

 

Garden State Preservation Trust, RB, Election 2005,
Series A (AGM):

 

 

 

 

 

 

 

5.80%, 11/01/21

 

$

3,635

 

$

4,233,539

 

5.80%, 11/01/23

 

 

5,050

 

 

5,893,350

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

 

9,810

 

 

9,630,869

 

Continental Airlines Inc. Project, AMT, 6.63%,
9/15/12

 

 

5,540

 

 

5,597,284

 

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

 

 

17,900

 

 

18,220,231

 

New Jersey EDA, Refunding RB:

 

 

 

 

 

 

 

School Facilities Construction, Series AA,
4.25%, 12/15/24

 

 

5,000

 

 

4,951,450

 

Series B, American Water, AMT (AMBAC),
5.13%, 4/01/22

 

 

5,000

 

 

5,000,550

 

New Jersey Higher Education Assistance Authority,
Refunding RB, Series 1A, 4.75%, 12/01/21

 

 

2,400

 

 

2,490,528

 

New Jersey State Housing & Mortgage Finance Agency,
RB, S/F Housing, Series X, AMT, 5.10%, 10/01/23

 

 

4,500

 

 

4,619,970

 

New Jersey Transportation Trust Fund Authority, RB, CAB,
Transportation System, Series C (AMBAC), 5.70%,
12/15/25 (d)

 

 

9,450

 

 

3,999,712

 

South Jersey Port Corp., RB, Marine Terminal,
Series O-1 (AGC), 4.63%, 1/01/23

 

 

1,375

 

 

1,439,928

 

University of Medicine & Dentistry of New Jersey, RB,
Series A (AMBAC):

 

 

 

 

 

 

 

5.50%, 12/01/23

 

 

1,000

 

 

1,012,910

 

5.50%, 12/01/27

 

 

1,000

 

 

1,009,050

 

 

 

 

 

 




 

 

 

 

 

 

68,099,371

 









New Mexico — 1.9%

 

 

 

 

 

 

 

New Mexico Finance Authority, RB, Senior Lien, Series A
(NPFGC), 5.13%, 6/15/18

 

 

9,520

 

 

10,594,998

 









New York — 25.9%

 

 

 

 

 

 

 

City of New York New York, GO:

 

 

 

 

 

 

 

Series D1, 5.13%, 12/01/26

 

 

4,615

 

 

4,948,572

 

Sub-Series I-1, 5.50%, 4/01/21

 

 

5,000

 

 

5,733,500

 

Dutchess County Industrial Development Agency
New York, RB, St. Francis Hospital, Series B, 7.25%,
3/01/19

 

 

895

 

 

905,239

 

Long Island Power Authority, Refunding RB, Series A,
5.50%, 4/01/24

 

 

1,475

 

 

1,618,665

 

Metropolitan Transportation Authority, RB, Transportation,
Series A, 5.00%, 11/15/25

 

 

1,980

 

 

2,084,782

 

Metropolitan Transportation Authority, Refunding RB:

 

 

 

 

 

 

 

Series A, 5.13%, 1/01/29

 

 

8,000

 

 

8,173,120

 

Series B, 5.25%, 11/15/25

 

 

4,000

 

 

4,386,640

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

3,500

 

 

3,435,250

 

Special Needs Facilities Pooled Program,
Series C-1, 6.80%, 7/01/19

 

 

2,055

 

 

2,019,099

 

New York City Industrial Development Agency,
Refunding RB, New York Stock Exchange Project,
Series A, 4.25%, 5/01/24

 

 

2,740

 

 

2,722,848

 

New York City Transitional Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2007, Series S-1, (NPFGC), 5.00%,
7/15/24

 

 

500

 

 

534,565

 

Fiscal 2009, Series S-3, 5.00%, 1/15/23

 

 

3,560

 

 

3,843,590

 

New York State Dormitory Authority, LRB, Municipal
Health Facilities, Sub-Series 2-4, 5.00%, 1/15/27

 

 

6,900

 

 

7,181,451

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (concluded)

 

 

 

 

 

 

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Mental Health Services Facilities Improvement,
Series A, (AGM), 5.00%, 2/15/22

 

$

4,000

 

$

4,293,680

 

Mount Sinai School of Medicine, Series A, (NPFGC),
5.15%, 7/01/24

 

 

1,000

 

 

1,029,810

 

North Shore-Long Island Jewish Health System,
Series A, 5.50%, 5/01/30

 

 

1,495

 

 

1,546,458

 

University of Rochester, Series A, 4.00%, 7/01/24

 

 

1,515

 

 

1,532,347

 

University of Rochester, Series C, 4.00%, 7/01/24

 

 

625

 

 

632,644

 

New York State Dormitory Authority, Refunding RB:

 

 

 

 

 

 

 

Consolidated Service Contract, Series A, 4.00%,
7/01/25

 

 

2,345

 

 

2,282,388

 

North Shore-Long Island Jewish Health System,
Series E, 5.00%, 5/01/22

 

 

650

 

 

671,411

 

North Shore-Long Island Jewish Health System,
Series E, 5.00%, 5/01/23

 

 

2,160

 

 

2,218,298

 

Yeshiva University, 4.00%, 9/01/23

 

 

2,860

 

 

2,897,066

 

Yeshiva University, 4.25%, 9/01/24

 

 

2,750

 

 

2,806,650

 

New York State Energy Research & Development
Authority, RB, Lilco Project, Series A (NPFGC),
5.15%, 3/01/16

 

 

2,310

 

 

2,318,200

 

New York State Environmental Facilities Corp., RB,
Environment, Series A (FGIC), 5.25%, 12/15/14 (a)

 

 

7,380

 

 

8,640,799

 

New York State Thruway Authority, Refunding RB,
Local Highway & Bridge, 5.50%, 4/01/17

 

 

60

 

 

64,435

 

New York State Urban Development Corp., Refunding
RB, Service Contract, Series B, 5.00%, 1/01/21

 

 

8,000

 

 

8,650,880

 

Port Authority of New York & New Jersey, Refunding RB:

 

 

 

 

 

 

 

Consolidated, 152nd Series, AMT, 5.00%,
11/01/23

 

 

2,500

 

 

2,566,325

 

Consolidated, 153rd Series, 5.00%, 7/15/24

 

 

2,010

 

 

2,209,693

 

Sales Tax Asset Receivable Corp., RB, Series A (NPFGC),
5.00%, 10/15/20

 

 

9,070

 

 

10,101,440

 

Tobacco Settlement Financing Corp. New York, RB:

 

 

 

 

 

 

 

Asset-Backed, Series A-1, (AMBAC), 5.25%,
6/01/22

 

 

6,510

 

 

6,923,580

 

Asset-Backed, Series B-1C, 5.50%, 6/01/21

 

 

7,000

 

 

7,523,110

 

Asset-Backed, Series B-1C, 5.50%, 6/01/22

 

 

10,000

 

 

10,778,700

 

Series C-1, (FGIC), 5.50%, 6/01/20

 

 

9,750

 

 

10,574,265

 

Trust for Cultural Resources, RB, Carnegie Hall, Series A,
5.00%, 12/01/29

 

 

4,250

 

 

4,444,140

 

United Nations Development Corp. New York, Refunding
RB, Series A, 4.25%, 7/01/24

 

 

2,985

 

 

2,991,597

 

 

 

 

 

 




 

 

 

 

 

 

145,285,237

 









North Carolina — 0.8%

 

 

 

 

 

 

 

Gaston County Industrial Facilities & Pollution Control
Financing Authority North Carolina, RB, Exempt
Facilities, National Gypsum Co. Project, AMT, 5.75%,
8/01/35

 

 

3,105

 

 

2,230,415

 

North Carolina Eastern Municipal Power Agency,
Refunding RB, Series B, 5.00%, 1/01/26

 

 

1,925

 

 

1,997,553

 

 

 

 

 

 




 

 

 

 

 

 

4,227,968

 









Northern Mariana Islands — 0.8%

 

 

 

 

 

 

 

Commonwealth of the Northern Mariana Islands,
GO, Series A:

 

 

 

 

 

 

 

6.75%, 10/01/33

 

 

250

 

 

229,410

 

6.75%, 10/01/33 (a)

 

 

3,900

 

 

4,542,486

 

 

 

 

 

 




 

 

 

 

 

 

4,771,896

 









Ohio — 0.5%

 

 

 

 

 

 

 

Ohio Air Quality Development Authority, RB, Ohio Valley
Electric Corp., 5.63%, 10/01/19

 

 

2,635

 

 

2,793,969

 









Oregon — 0.4%

 

 

 

 

 

 

 

Oregon State Facilities Authority, RB, Willamette
University Project, Series A, 4.00%, 10/01/24 (c)

 

 

2,325

 

 

2,279,965

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

43




 

 



 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Pennsylvania — 8.6%

 

 

 

 

 

 

 

City of Philadelphia Pennsylvania, RB, Series A, AMT
(AGM), 5.00%, 6/15/20

 

$

2,895

 

$

2,974,612

 

City of Philadelphia Pennsylvania, Refunding RB (AGM):

 

 

 

 

 

 

 

1975 General Ordinance, 17th Series, 5.38%,
7/01/22

 

 

7,490

 

 

7,939,700

 

Series B, AMT, 5.00%, 6/15/19

 

 

3,905

 

 

4,045,580

 

City of Pittsburgh Pennsylvania, GO, Refunding,
Series B (AGM), 5.25%, 9/01/17

 

 

9,630

 

 

10,477,055

 

City of Pittsburgh Pennsylvania, GO, Series C (AGM),
5.25%, 9/01/18

 

 

6,430

 

 

6,924,017

 

Montgomery County IDA Pennsylvania, MRB,
Whitemarsh Continuing Care, 6.00%, 2/01/21

 

 

3,500

 

 

3,032,785

 

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

 

 

7,710

 

 

6,155,124

 

South Fork Municipal Authority, RB, Conemaugh Valley
Memorial, Series A (AGC), 6.00%, 7/01/26 (c)

 

 

6,225

 

 

6,762,591

 

 

 

 

 

 




 

 

 

 

 

 

48,311,464

 









Puerto Rico — 14.7%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Public
Improvement, Series A (NPFGC), 5.50%, 7/01/21

 

 

3,290

 

 

3,503,192

 

Puerto Rico Aqueduct & Sewer Authority, RB, Senior
Lien, Series A (AGC), 5.00%, 7/01/25

 

 

3,215

 

 

3,343,761

 

Puerto Rico Electric Power Authority, RB:

 

 

 

 

 

 

 

Series NN, 5.50%, 7/01/13 (a)

 

 

17,935

 

 

20,416,307

 

Series TT, 5.00%, 7/01/27

 

 

8,500

 

 

8,616,960

 

Series WW, 5.50%, 7/01/38

 

 

3,000

 

 

3,081,150

 

Puerto Rico Highway & Transportation Authority, RB:

 

 

 

 

 

 

 

Series Y (AGM), 6.25%, 7/01/21

 

 

3,000

 

 

3,346,800

 

Subordinate (FGIC), 5.75%, 7/01/21

 

 

4,375

 

 

4,500,038

 

Puerto Rico Housing Finance Authority, Refunding RB,
Subordinate, Capital Fund Modernization, 5.13%,
12/01/27

 

 

13,900

 

 

13,875,397

 

Puerto Rico Industrial Medical & Environmental
Pollution Control Facilities Financing Authority, RB,
Special Facilities, American Airlines, Series A, 6.45%,
12/01/25

 

 

5,390

 

 

4,448,744

 

Puerto Rico Public Buildings Authority, RB, Government
Facilities, Series I, 5.50%, 7/01/14 (a)

 

 

8,000

 

 

9,228,880

 

Puerto Rico Public Buildings Authority, Refunding RB,
Government Facilities:

 

 

 

 

 

 

 

Series D, 5.25%, 7/01/27

 

 

3,930

 

 

3,938,489

 

Series M-3 (NPFGC), 6.00%, 7/01/28

 

 

1,900

 

 

1,998,667

 

Puerto Rico Sales Tax Financing Corp., RB, First
Sub-Series A, 5.75%, 8/01/37

 

 

2,000

 

 

2,120,500

 

 

 

 

 

 




 

 

 

 

 

 

82,418,885

 









Rhode Island — 0.5%

 

 

 

 

 

 

 

Rhode Island Health & Educational Building Corp.,
RB, University of Rhode Island, Series A (AGC),
4.75%, 9/15/24

 

 

2,500

 

 

2,593,750

 









South Dakota — 0.4%

 

 

 

 

 

 

 

Educational Enhancement Funding Corp., RB, Series B,
6.50%, 6/01/32

 

 

2,200

 

 

2,201,650

 









Tennessee — 2.5%

 

 

 

 

 

 

 

Chattanooga-Hamilton County Hospital Authority
Tennessee, Refunding RB, Erlanger Health (AGM),
5.00%, 10/01/22

 

 

1,620

 

 

1,667,142

 

Johnson City Health & Educational Facilities Board,
RB, Appalachian Christian Village Project, Series A,
6.00%, 2/15/19

 

 

1,660

 

 

1,651,999

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Tennessee (concluded)

 

 

 

 

 

 

 

Memphis-Shelby County Sports Authority Inc.,
Refunding RB, Memphis Arena Project:

 

 

 

 

 

 

 

Series A, 5.00%, 11/01/23

 

$

2,695

 

$

2,784,151

 

Series A, 5.25%, 11/01/26

 

 

2,055

 

 

2,116,999

 

Series B, 5.00%, 11/01/22

 

 

1,000

 

 

1,037,920

 

Shelby County Health Educational & Housing Facilities
Board, RB, Germantown Village, Series A:

 

 

 

 

 

 

 

6.75%, 12/01/18

 

 

3,550

 

 

3,361,885

 

7.00%, 12/01/23

 

 

1,450

 

 

1,344,600

 

 

 

 

 

 




 

 

 

 

 

 

13,964,696

 









Texas — 5.6%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, TXU Electric Co.
Project, Series C, AMT, 5.75%, 5/01/36 (b)

 

 

7,000

 

 

6,804,700

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., RB, Series 2001-A-1, AMT,
6.15%, 1/01/16

 

 

4,000

 

 

4,000,760

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., Refunding RB, Series A,
Sub-Series 2, AMT, 9.00%, 5/01/29

 

 

3,000

 

 

3,023,850

 

Gulf Coast IDA, RB, Citgo Petroleum Corp. Project, AMT,
7.50%, 5/01/25

 

 

2,440

 

 

2,508,417

 

Gulf Coast Waste Disposal Authority, Refunding RB,
Series A, AMT, 6.10%, 8/01/24

 

 

2,000

 

 

2,000,940

 

Houston Health Facilities Development Corp., RB,
Buckingham Senior Living Community, Series A,
7.00%, 2/15/14 (a)

 

 

1,500

 

 

1,800,015

 

Red River Education Financing Corp., Refunding RB,
Higher Education, Texas Christian University, 4.25%,
3/15/26

 

 

2,500

 

 

2,507,900

 

Sabine River Authority Texas, Refunding RB, TXU
Electric Co. Project, Series B, AMT, 5.75%,
5/01/30 (b)

 

 

5,000

 

 

4,866,200

 

Texas State Affordable Housing Corp., RB, Professional
Educators Program, Series B, AMT (GNMA), 5.95%,
12/01/39

 

 

3,963

 

 

4,140,067

 

 

 

 

 

 




 

 

 

 

 

 

31,652,849

 









U.S. Virgin Islands — 1.5%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB, Senior
Secured, Hovensa Coker Project, AMT, 6.50%,
7/01/21

 

 

1,860

 

 

1,884,254

 

Virgin Islands Public Finance Authority, RB, Senior
Secured, Hovensa Refinery, AMT, 6.13%, 7/01/22

 

 

6,750

 

 

6,798,803

 

 

 

 

 

 




 

 

 

 

 

 

8,683,057

 









Vermont — 0.5%

 

 

 

 

 

 

 

Vermont Educational & Health Buildings Financing
Agency, RB, Hospital, Fletcher Allen Health, Series
A (AMBAC), 6.00%, 12/01/23

 

 

3,000

 

 

3,029,550

 









Virginia — 2.7%

 

 

 

 

 

 

 

James City County EDA, Refunding RB, First Mortgage,
Williamsburg Lodge, Series A:

 

 

 

 

 

 

 

5.75%, 3/01/17

 

 

3,285

 

 

3,342,192

 

6.00%, 3/01/23

 

 

1,150

 

 

1,159,407

 

Tobacco Settlement Financing Corp. Virginia, RB,
Asset-Backed, 5.63%, 6/01/15 (a)

 

 

7,800

 

 

9,093,786

 

Virginia Public School Authority, Refunding RB, School
Financing, Series C, 3.50%, 8/01/25

 

 

1,750

 

 

1,703,030

 

 

 

 

 

 




 

 

 

 

 

 

15,298,415

 










 

 

 

See Notes to Financial Statements.

 

 




44

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Schedule of Investments (concluded)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







West Virginia — 0.7%

 

 

 

 

 

 

 

West Virginia Hospital Finance Authority, Refunding RB,
Charleston, Series A, 5.13%, 9/01/23

 

$

4,000

 

$

4,133,120

 









Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Housing & EDA, RB, Series C, AMT, 4.85%,
9/01/26

 

 

2,000

 

 

2,000,800

 









Total Municipal Bonds — 141.6%

 

 

 

 

 

794,520,523

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to

 

 

 

 

 

 

 

Tender Option Bond Trusts (e)

 

 

 

 

 

 

 









California — 5.0%

 

 

 

 

 

 

 

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

 

 

3,101

 

 

3,202,021

 

Peralta Community College District, GO, Election of 2000,
Series D (AGM), 5.00%, 8/01/30

 

 

10,140

 

 

10,388,430

 

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

 

 

9,028

 

 

9,440,146

 

Tamalpais Union High School District California, GO,
Election of 2001 (AGM), 5.00%, 8/01/28

 

 

4,875

 

 

5,014,961

 

 

 

 

 

 




 

 

 

 

 

 

28,045,558

 









Illinois — 2.4%

 

 

 

 

 

 

 

McHenry County Conservation District Illinois, GO
(AGM), 5.13%, 2/01/27

 

 

12,695

 

 

13,517,264

 









Massachusetts — 1.6%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

8,338

 

 

8,732,049

 









New Jersey — 2.1%

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund Authority, RB,
Transportation System, Series D (AGM), 5.00%,
6/15/19

 

 

11,120

 

 

11,910,521

 









New York — 5.7%

 

 

 

 

 

 

 

City of New York New York, GO, Sub-Series B-1,
5.25%, 9/01/22

 

 

8,250

 

 

9,167,813

 

New York State Urban Development Corp., RB, State
Personal Income Tax, State Facilities, Series A-1
(NPFGC), 5.25%, 3/15/34

 

 

10,000

 

 

10,415,000

 

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

 

 

11,101

 

 

12,371,738

 

 

 

 

 

 




 

 

 

 

 

 

31,954,551

 









Washington — 1.9%

 

 

 

 

 

 

 

Snohomish County School District No. 15-Edmonds
Washington, GO (NPFGC), 5.00%, 12/01/19

 

 

10,000

 

 

10,939,400

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 18.7%

 

 

 

 

 

105,099,343

 









Total Long-Term Investments
(Cost — $880,296,838) — 160.3%

 

 

 

 

 

899,619,866

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








FFI Institutional Tax-Exempt Fund, 0.25% (f)(g)

 

 

17,541,876

 

 

17,541,876

 









Total Short-Term Securities
(Cost — $17,541,876) — 3.1%

 

 

 

 

 

17,541,876

 









Total Investments (Cost — $897,838,714*) — 163.4%

 

 

 

 

 

917,161,742

 

Liabilities in Excess of Other Assets — (2.0)%

 

 

 

 

 

(11,359,735

)

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (10.2)%

 

 

 

 

 

(57,405,111

)

Preferred Shares, at Redemption Value –(51.2)%

 

 

 

 

 

(287,257,042

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

561,139,854

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

839,914,913

 

 

 




Gross unrealized appreciation

 

$

30,910,275

 

Gross unrealized depreciation

 

 

(11,012,260

)

 

 




Net unrealized appreciation

 

$

19,898,015

 

 

 





 

 

(a)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(b)

Variable rate security. Rate shown is as of report date.

 

 

(c)

When-issued security. Net unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Appreciation

 









Citigroup Global Markets, Inc.

 

$

8,847,600

 

$

18,798

 

Merrill Lynch & Co.

 

$

9,042,556

 

$

102,686

 

Prager Sealy Co.

 

$

6,719,764

 

$

115,300

 










 

 

(d)

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

 

 

(e)

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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(f)

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 











Affiliate

 

Shares
Held at
April 30,
2009

 

Net
Activity

 

Shares
Held at
April 30,
2010

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

403,856

 

 

17,138,020

 

 

17,541,876

 

$

24,613

 
















 

 

 

(g)

Represents the current yield as of report date.

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities.

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

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

 

 

 

 

The inputs or methodologies 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 Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of April 30, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 





 

 

Investments in Securities

 





Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

899,619,866

 

 

 

$

899,619,866

 

Short-Term Securities

 

$

17,541,876

 

 

 

 

 

 

17,541,876

 

 

 













Total

 

$

17,541,876

 

$

899,619,866

 

 

 

$

917,161,742

 

 

 














 

 

 

 

1

See above schedule of investments for values in each state or political subdivision.


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

45




 

 


 

Schedule of Investments April 30, 2010

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 1.0%

 

 

 

 

 

 

 

Prattville IDB Alabama, RB, International Paper Co.
Project, Series A, AMT, 4.75%, 12/01/30

 

$

3,500

 

$

2,960,965

 









Arizona — 2.1%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

687,360

 

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

 

 

1,940

 

 

1,871,072

 

Pima County IDA, Refunding IDRB, Tucson Electric Power,
5.75%, 9/01/29

 

 

1,110

 

 

1,129,514

 

Pima County IDA, Refunding RB, Charter Schools II,
Series A, 6.75%, 7/01/21

 

 

485

 

 

485,291

 

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

 

 

1,980

 

 

2,069,614

 

 

 

 

 

 




 

 

 

 

 

 

6,242,851

 









California — 14.3%

 

 

 

 

 

 

 

California Health Facilities Financing Authority,
Refunding RB, St. Joseph Health System, Series A,
5.75%, 7/01/39

 

 

2,200

 

 

2,287,186

 

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

 

 

1,185

 

 

1,269,550

 

City of Chula Vista California, RB, San Diego Gas &
Electric, Series B, AMT, 5.00%, 12/01/27

 

 

2,500

 

 

2,448,350

 

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

 

 

800

 

 

829,104

 

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

 

 

5,930

 

 

6,042,433

 

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

 

 

9,475

 

 

9,815,815

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

2,525

 

 

2,779,293

 

6.50%, 4/01/33

 

 

14,925

 

 

16,921,517

 

 

 

 

 

 




 

 

 

 

 

 

42,393,248

 









Colorado — 3.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic Health
Initiatives, Series D, 6.25%, 10/01/33

 

 

1,060

 

 

1,173,113

 

Colorado Housing & Finance Authority, Refunding RB,
S/F Program, Senior Series A-2, AMT, 7.50%, 4/01/31

 

 

105

 

 

111,522

 

Elk Valley Public Improvement Corp., RB,
Public Improvement Fee:

 

 

 

 

 

 

 

Series A, 7.35%, 9/01/31

 

 

3,025

 

 

2,792,740

 

Series B, 7.45%, 9/01/31

 

 

400

 

 

373,084

 

Plaza Metropolitan District No. 1 Colorado,
Tax Allocation Bonds:

 

 

 

 

 

 

 

Public Improvement Fee, Tax Increment,
8.00%, 12/01/25

 

 

3,300

 

 

3,303,696

 

Subordinate Public Improvement Fee, Tax Increment,
8.13%, 12/01/25

 

 

820

 

 

782,083

 

University of Colorado, RB, Series A, 5.75%, 6/01/28

 

 

750

 

 

847,920

 

 

 

 

 

 




 

 

 

 

 

 

9,384,158

 









Connecticut — 3.1%

 

 

 

 

 

 

 

Connecticut Housing Finance Authority, RB,
Sub-Series C-1, 4.85%, 11/15/34

 

 

2,430

 

 

2,447,642

 

Connecticut State Health & Educational Facility
Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit, 5.00%, 11/15/40

 

 

1,375

 

 

1,412,785

 

Wesleyan University, 5.00%, 7/01/35 (a)

 

 

3,385

 

 

3,598,424

 

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

 

 

2,000

 

 

1,607,720

 

 

 

 

 

 




 

 

 

 

 

 

9,066,571

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







District of Columbia — 2.0%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, RB:

 

 

 

 

 

 

 

CAB, Second Senior Lien, Series B (AGC),
7.05%, 10/01/33 (b)

 

$

6,590

 

$

1,684,602

 

CAB, Second Senior Lien, Series B (AGC),
7.08%, 10/01/34 (b)

 

 

4,830

 

 

1,153,839

 

CAB, Second Senior Lien, Series B (AGC),
7.10%, 10/01/35 (b)

 

 

6,515

 

 

1,453,301

 

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

 

 

1,500

 

 

1,568,190

 

 

 

 

 

 




 

 

 

 

 

 

5,859,932

 









Florida — 8.5%

 

 

 

 

 

 

 

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

 

 

5,680

 

 

5,786,046

 

County of Miami-Dade Florida, Refunding RB,
Miami International Airport:

 

 

 

 

 

 

 

AMT (AGC), 5.00%, 10/01/40

 

 

9,235

 

 

8,791,535

 

Series A-1, 5.38%, 10/01/41

 

 

1,165

 

 

1,178,386

 

Fiddlers Creek Community Development District No. 2,
Special Assessment Bonds (c)(d):

 

 

 

 

 

 

 

Series A, 6.38%, 5/01/35

 

 

2,350

 

 

987,000

 

Series B, 5.75%, 5/01/13

 

 

400

 

 

168,000

 

Hillsborough County IDA, RB:

 

 

 

 

 

 

 

H. Lee Moffitt Cancer Center Project, Series A,
5.25%, 7/01/37

 

 

3,500

 

 

3,283,420

 

National Gypsum Co., Series B, AMT,
7.13%, 4/01/30

 

 

2,720

 

 

2,369,147

 

Midtown Miami Community Development District,
Special Assessment Bonds, Series A, 6.25%, 5/01/37

 

 

915

 

 

858,508

 

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

 

 

1,225

 

 

727,907

 

Preserve at Wilderness Lake Community Development
District, RB, Series A, 7.10%, 5/01/33

 

 

875

 

 

877,100

 

 

 

 

 

 




 

 

 

 

 

 

25,027,049

 









Georgia — 5.1%

 

 

 

 

 

 

 

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

 

 

845

 

 

877,093

 

Fulton County Residential Care Facilities for the Elderly
Authority, Refunding RB, Canterbury Court Project,
Series A, 6.13%, 2/15/26

 

 

2,000

 

 

1,852,420

 

Gainesville Redevelopment Authority, Refunding RB,
Riverside Military Academy, 5.13%, 3/01/37

 

 

600

 

 

370,854

 

Metropolitan Atlanta Rapid Transit Authority, RB,
Third Series, 5.00%, 7/01/39

 

 

3,465

 

 

3,646,982

 

Municipal Electric Authority of Georgia, RB, Series W:

 

 

 

 

 

 

 

6.60%, 1/01/18

 

 

5,560

 

 

6,427,249

 

6.60%, 1/01/18 (e)

 

 

380

 

 

435,016

 

Municipal Electric Authority of Georgia, Refunding RB,
Series X, 6.50%, 1/01/20

 

 

1,250

 

 

1,477,800

 

 

 

 

 

 




 

 

 

 

 

 

15,087,414

 









Guam — 0.8%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

630

 

 

652,182

 

6.75%, 11/15/29

 

 

895

 

 

951,886

 

7.00%, 11/15/39

 

 

615

 

 

656,722

 

 

 

 

 

 




 

 

 

 

 

 

2,260,790

 









Idaho — 0.0%

 

 

 

 

 

 

 

Idaho Housing & Finance Association, Refunding
RB, S/F Mortgage, Senior Series E-2, AMT,
6.90%, 1/01/27

 

 

45

 

 

45,079

 










See Notes to Financial Statements.

 

 

 




46

ANNUAL REPORT

APRIL 30, 2010




 

 


 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Illinois — 9.7%

 

 

 

 

 

 

 

City of Chicago Illinois, RB, Series C, AMT (GNMA),
7.00%, 3/01/32

 

$

145

 

$

149,008

 

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

 

 

800

 

 

760,048

 

City of Chicago Illinois, Tax Allocation Bonds, Kingsbury
Redevelopment Project, Series A, 6.57%, 2/15/13

 

 

900

 

 

899,811

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Advocate Health Care Network, Series D,
6.50%, 11/01/38

 

 

5,000

 

 

5,558,200

 

Community Rehabilitation Providers Facilities,
Series A, 6.50%, 7/01/22

 

 

1,000

 

 

1,004,940

 

Illinois Finance Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,610

 

 

1,672,774

 

Friendship Village Schaumburg, Series A,
5.63%, 2/15/37

 

 

250

 

 

199,218

 

Regional Transportation Authority, RB:

 

 

 

 

 

 

 

Series A (AMBAC), 7.20%, 11/01/20

 

 

1,500

 

 

1,837,995

 

Series A (NPFGC), 6.70%, 11/01/21

 

 

7,000

 

 

8,481,270

 

Series C (NPFGC), 7.75%, 6/01/20

 

 

2,500

 

 

3,208,450

 

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

 

 

630

 

 

656,384

 

Village of Hodgkins Illinois, RB, MBM Project, AMT,
6.00%, 11/01/23

 

 

2,800

 

 

2,801,484

 

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

 

 

1,550

 

 

1,414,390

 

 

 

 

 

 




 

 

 

 

 

 

28,643,972

 









Indiana — 6.9%

 

 

 

 

 

 

 

Indiana Finance Authority, RB, Sisters of St. Francis
Health, 5.25%, 11/01/39

 

 

840

 

 

855,095

 

Indiana Finance Authority, Refunding RB:

 

 

 

 

 

 

 

Duke Energy Indiana Inc., Series C,
4.95%, 10/01/40

 

 

2,780

 

 

2,748,002

 

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

 

 

3,295

 

 

3,388,182

 

Indiana Health & Educational Facilities Financing
Authority, RB, Clarian Health Obligation, Series A,
5.25%, 2/15/40

 

 

500

 

 

480,330

 

Indiana Transportation Finance Authority, RB, Series A:

 

 

 

 

 

 

 

7.25%, 6/01/15

 

 

320

 

 

331,725

 

6.80%, 12/01/16

 

 

3,775

 

 

4,316,524

 

Indianapolis Local Public Improvement Bond Bank,
Refunding RB, Series D, 6.75%, 2/01/14

 

 

7,450

 

 

8,163,859

 

 

 

 

 

 




 

 

 

 

 

 

20,283,717

 









Kentucky — 0.3%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Refunding RB, Owensboro Medical Health System,
Series A, 6.38%, 6/01/40

 

 

1,010

 

 

1,038,280

 









Louisiana — 4.1%

 

 

 

 

 

 

 

Port of New Orleans Louisiana, Refunding RB,
Continental Grain Co. Project, 6.50%, 1/01/17

 

 

8,500

 

 

8,476,370

 

Sabine River Authority Louisiana, Refunding RB,
International Paper Co. Project, 6.20%, 2/01/25

 

 

3,600

 

 

3,642,120

 

 

 

 

 

 




 

 

 

 

 

 

12,118,490

 









Maryland — 1.7%

 

 

 

 

 

 

 

County of Montgomery Maryland, GO, West Germantown
Development District, Senior Series A (Radian),
6.70%, 7/01/27

 

 

1,190

 

 

1,222,059

 

Maryland Community Development Administration,
Refunding RB, Residential, Series D, AMT,
4.90%, 9/01/42

 

 

1,500

 

 

1,441,140

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Maryland (concluded)

 

 

 

 

 

 

 

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

 

$

435

 

$

444,322

 

Maryland Health & Higher Educational Facilities
Authority, RB:

 

 

 

 

 

 

 

King Farm Presbyterian Community, Series B,
5.00%, 1/01/17

 

 

875

 

 

802,130

 

University of Maryland Medical System, Series B
(NPFGC), 7.00%, 7/01/22

 

 

1,000

 

 

1,168,330

 

 

 

 

 

 




 

 

 

 

 

 

5,077,981

 









Massachusetts — 4.2%

 

 

 

 

 

 

 

Massachusetts HFA, HRB, Series A, AMT,
5.20%, 12/01/37

 

 

3,000

 

 

3,010,440

 

Massachusetts HFA, RB, S/F, Series 130, AMT,
5.00%, 12/01/32

 

 

2,720

 

 

2,694,432

 

Massachusetts HFA, Refunding HRB, AMT:

 

 

 

 

 

 

 

Series D, 4.85%, 6/01/40

 

 

2,770

 

 

2,603,218

 

Series F, 5.70%, 6/01/40

 

 

2,230

 

 

2,264,654

 

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

 

 

1,805

 

 

1,830,072

 

 

 

 

 

 




 

 

 

 

 

 

12,402,816

 









Michigan — 6.5%

 

 

 

 

 

 

 

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

 

 

910

 

 

1,092,692

 

Flint Hospital Building Authority Michigan, Refunding RB,
Hurley Medical Center (ACA), 6.00%, 7/01/20

 

 

2,890

 

 

2,833,790

 

Michigan State Hospital Finance Authority,
Refunding RB:

 

 

 

 

 

 

 

Henry Ford Health System, Series A,
5.25%, 11/15/46

 

 

7,050

 

 

6,430,375

 

McLaren Health Care, 5.75%, 5/15/38

 

 

8,560

 

 

8,764,327

 

 

 

 

 

 




 

 

 

 

 

 

19,121,184

 









Mississippi — 4.0%

 

 

 

 

 

 

 

County of Lowndes Mississippi, Refunding RB,
Weyerhaeuser Co. Project, Series A, 6.80%, 4/01/22

 

 

3,000

 

 

3,202,080

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project:

 

 

 

 

 

 

 

5.88%, 4/01/22

 

 

2,500

 

 

2,488,850

 

5.90%, 5/01/22

 

 

5,000

 

 

4,991,500

 

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

 

 

1,065

 

 

1,138,687

 

 

 

 

 

 




 

 

 

 

 

 

11,821,117

 









Nevada — 0.2%

 

 

 

 

 

 

 

County of Clark Nevada, Special Assessment Bonds,
Special Improvement District No. 142, Local
Improvement, 6.38%, 8/01/23

 

 

580

 

 

548,465

 









New Jersey — 3.3%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.50%, 6/15/24

 

 

3,335

 

 

3,302,517

 

Continental Airlines Inc. Project, AMT,
6.25%, 9/15/29

 

 

3,000

 

 

2,814,300

 

New Jersey Health Care Facilities Financing Authority,
RB, Pascack Valley Hospital Association,
6.63%, 7/01/36 (c)(d)

 

 

1,680

 

 

17

 

New Jersey State Housing & Mortgage Finance Agency,
RB, Series AA, 6.38%, 10/01/28

 

 

1,245

 

 

1,374,455

 

Tobacco Settlement Financing Corp. New Jersey,
Refunding RB, Series 1A, 4.50%, 6/01/23

 

 

2,500

 

 

2,387,850

 

 

 

 

 

 




 

 

 

 

 

 

9,879,139

 










See Notes to Financial Statements.

 

 

 




ANNUAL REPORT

APRIL 30, 2010

47




 

 


 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York — 9.6%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, RB, Series 2008C,
6.50%, 11/15/28

 

$

9,405

 

$

10,921,933

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

1,920

 

 

1,898,419

 

Series C, 6.80%, 6/01/28

 

 

690

 

 

725,473

 

Special Needs Facilities Pooled Program,
Series C-1, 6.50%, 7/01/17

 

 

890

 

 

867,083

 

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

 

 

6,700

 

 

7,112,854

 

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

 

 

5,790

 

 

5,979,101

 

Westchester County Industrial Development Agency
New York, RB, Special Needs Facilities Pooled Program,
Series E-1, 6.50%, 7/01/17

 

 

1,000

 

 

974,250

 

 

 

 

 

 




 

 

 

 

 

 

28,479,113

 









North Carolina — 2.0%

 

 

 

 

 

 

 

City of Charlotte North Carolina, RB, Series B,
5.00%, 7/01/38

 

 

950

 

 

1,023,739

 

Gaston County Industrial Facilities & Pollution Control
Financing Authority North Carolina, RB, Exempt
Facilities, National Gypsum Co. Project, AMT,
5.75%, 8/01/35

 

 

1,675

 

 

1,203,203

 

North Carolina Medical Care Commission, RB, Duke
University Health System, Series A:

 

 

 

 

 

 

 

5.00%, 6/01/39

 

 

630

 

 

642,417

 

5.00%, 6/01/42

 

 

1,400

 

 

1,421,392

 

North Carolina Medical Care Commission, Refunding RB,
Carolina Village Project, 6.00%, 4/01/38

 

 

2,000

 

 

1,691,800

 

 

 

 

 

 




 

 

 

 

 

 

5,982,551

 









Ohio — 3.5%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB,
Asset-Backed, Senior Series A-2, 6.50%, 6/01/47

 

 

12,500

 

 

10,258,000

 









Pennsylvania — 4.5%

 

 

 

 

 

 

 

Bucks County IDA, RB, Ann’s Choice Inc. Facility,
Series A, 6.13%, 1/01/25

 

 

880

 

 

833,105

 

Lancaster County Hospital Authority, RB, Brethren Village
Project, Series A, 6.50%, 7/01/40

 

 

2,000

 

 

1,940,680

 

Montgomery County IDA Pennsylvania, MRB,
Whitemarsh Continuing Care:

 

 

 

 

 

 

 

6.13%, 2/01/28

 

 

470

 

 

377,316

 

6.25%, 2/01/35

 

 

1,090

 

 

807,995

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

Aqua Pennsylvania Inc. Project, 5.00%, 11/15/40

 

 

1,890

 

 

1,946,341

 

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

 

 

2,000

 

 

1,574,220

 

Pennsylvania Turnpike Commission, RB, Sub-Series B,
5.25%, 6/01/39

 

 

4,415

 

 

4,562,991

 

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

 

 

1,265

 

 

1,266,379

 

 

 

 

 

 




 

 

 

 

 

 

13,309,027

 









Puerto Rico — 2.7%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding, Public
Improvement, Series C, 6.00%, 7/01/39

 

 

2,990

 

 

3,149,068

 

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

 

 

4,255

 

 

4,806,916

 

 

 

 

 

 




 

 

 

 

 

 

7,955,984

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Tennessee — 0.7%

 

 

 

 

 

 

 

Johnson City Health & Educational Facilities Board, RB,
Appalachian Christian Village Project, Series A,
6.00%, 2/15/24

 

$

1,000

 

$

964,490

 

Rutherford County Health & Educational Facilities
Board, RB, Ascension Health Senior Credit Group,
5.00%, 11/15/40

 

 

1,025

 

 

1,043,665

 

 

 

 

 

 




 

 

 

 

 

 

2,008,155

 









Texas — 10.3%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, AMT:

 

 

 

 

 

 

 

TXU Electric Co. Project, Series C, 5.75%, 5/01/36

 

 

2,740

 

 

2,663,554

 

Texas Utility Co., Series, 7.70%, 4/01/33

 

 

1,500

 

 

893,250

 

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

 

 

5,800

 

 

5,892,278

 

City of Houston Texas, RB, Special Facilities, Continental
Airlines, Series E, AMT, 6.75%, 7/01/21

 

 

4,820

 

 

4,803,371

 

Guadalupe-Blanco River Authority, RB, E.I. du Pont de
Nemours & Co. Project, AMT, 6.40%, 4/01/26

 

 

2,250

 

 

2,251,688

 

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

 

 

2,000

 

 

2,254,340

 

North Texas Tollway Authority, Refunding RB, First Tier,
Series A, 6.25%, 1/01/39

 

 

7,000

 

 

7,733,250

 

Texas Private Activity Bond Surface Transportation Corp.,
RB, Senior Lien, Note Mobility, 6.88%, 12/31/39

 

 

3,875

 

 

4,048,290

 

 

 

 

 

 




 

 

 

 

 

 

30,540,021

 









U.S. Virgin Islands — 2.1%

 

 

 

 

 

 

 

United States Virgin Islands, Refunding RB,
Senior Secured, Hovensa Coker Project, AMT,
6.50%, 7/01/21

 

 

6,000

 

 

6,078,240

 









Utah — 1.0%

 

 

 

 

 

 

 

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

 

 

2,780

 

 

2,827,343

 









Virginia — 2.1%

 

 

 

 

 

 

 

Fairfax County EDA, Refunding RB, Goodwin House Inc.:

 

 

 

 

 

 

 

5.13%, 10/01/37

 

 

1,000

 

 

966,390

 

5.13%, 10/01/42

 

 

3,440

 

 

3,290,738

 

Tobacco Settlement Financing Corp. Virginia,
Refunding RB, Senior Series B1, 5.00%, 6/01/47

 

 

2,905

 

 

1,999,599

 

 

 

 

 

 




 

 

 

 

 

 

6,256,727

 









Washington — 3.5%

 

 

 

 

 

 

 

Energy Northwest, Refunding RB, Series B,
7.13%, 7/01/16

 

 

5,000

 

 

6,255,800

 

Washington Health Care Facilities Authority,
Refunding RB, Catholic Health Initiatives, Series D,
6.38%, 10/01/36

 

 

3,700

 

 

4,077,992

 

 

 

 

 

 




 

 

 

 

 

 

10,333,792

 









Wisconsin — 6.0%

 

 

 

 

 

 

 

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

 

 

7,100

 

 

7,892,360

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

2,465

 

 

2,511,786

 

SynergyHealth Inc., 6.00%, 11/15/32

 

 

2,215

 

 

2,279,191

 

Wisconsin Housing & EDA, Refunding RB, AMT:

 

 

 

 

 

 

 

Series A, 5.63%, 3/01/31

 

 

2,505

 

 

2,593,752

 

Series C, 4.88%, 3/01/36

 

 

2,720

 

 

2,572,766

 

 

 

 

 

 




 

 

 

 

 

 

17,849,855

 









Total Municipal Bonds — 129.0%

 

 

 

 

 

381,142,026

 










See Notes to Financial Statements.

 

 

 




48

ANNUAL REPORT

APRIL 30, 2010




 

 


 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

Par
(000)

 

Value

 









California — 3.3%

 

 

 

 

 

 

 

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

 

$

3,271

 

$

3,560,827

 

California Educational Facilities Authority, RB,
University of Southern California, Series A,
5.25%, 10/01/18

 

 

2,610

 

 

2,798,755

 

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

 

 

2,290

 

 

2,344,365

 

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

 

 

1,077

 

 

1,130,826

 

 

 

 

 

 




 

 

 

 

 

 

9,834,773

 









Colorado — 0.8%

 

 

 

 

 

 

 

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

 

 

2,129

 

 

2,258,299

 









Connecticut — 2.2%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility Authority,
RB, Yale University, Series Z-3, 5.05%, 7/01/42

 

 

6,000

 

 

6,343,020

 









Illinois — 1.6%

 

 

 

 

 

 

 

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

 

 

1,320

 

 

1,396,533

 

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

 

 

2,999

 

 

3,258,889

 

 

 

 

 

 




 

 

 

 

 

 

4,655,422

 









Maryland — 0.8%

 

 

 

 

 

 

 

Maryland State Transportation Authority, RB,
Transportation Facility Project (AGM), 5.00%, 7/01/41

 

 

2,290

 

 

2,418,698

 









Massachusetts — 3.6%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A
(AGM), 5.00%, 8/15/30

 

 

10,000

 

 

10,472,100

 









New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

2,009

 

 

2,181,212

 









New York — 2.8%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Series DD, 5.00%, 6/15/37

 

 

6,299

 

 

6,589,646

 

Series FF-2, 5.50%, 6/15/40

 

 

1,575

 

 

1,751,073

 

 

 

 

 

 




 

 

 

 

 

 

8,340,719

 









North Carolina — 2.2%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Duke University Project, Series A,
5.00%, 10/01/41

 

 

6,239

 

 

6,488,836

 









Ohio — 5.7%

 

 

 

 

 

 

 

Ohio Higher Educational Facility Commission,
Refunding RB, Hospital, Cleveland Clinic Health,
Series A, 5.25%, 1/01/33

 

 

2,400

 

 

2,485,584

 

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

 

 

13,840

 

 

14,459,617

 

 

 

 

 

 




 

 

 

 

 

 

16,945,201

 









South Carolina — 1.8%

 

 

 

 

 

 

 

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

 

 

4,995

 

 

5,439,755

 









Texas — 6.6%

 

 

 

 

 

 

 

Harris County Health Facilities Development Corp.,
Refunding RB, School Health Care System, Series B,
5.75%, 7/01/27 (e)

 

 

10,000

 

 

12,253,000

 

Texas Department of Housing & Community Affairs,
MRB, Series B, AMT (GNMA), 5.25%, 9/01/32

 

 

4,352

 

 

4,396,071

 

Texas State University Systems, Refunding RB (AGM),
5.00%, 3/15/30

 

 

2,743

 

 

2,840,624

 

 

 

 

 

 




 

 

 

 

 

 

19,489,695

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

Par
(000)

 

Value

 







Washington — 5.9%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit Authority,
RB, Series A:

 

 

 

 

 

 

 

5.00%, 11/01/34

 

$

5,000

 

$

5,228,950

 

5.00%, 11/01/36

 

 

4,000

 

 

4,183,160

 

(AGM), 5.00%, 11/01/32

 

 

7,693

 

 

8,096,207

 

 

 

 

 

 




 

 

 

 

 

 

17,508,317

 









Wisconsin — 0.9%

 

 

 

 

 

 

 

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

 

 

2,499

 

 

2,560,125

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 38.9%

 

 

 

 

 

114,936,172

 









Total Long-Term Investments
(Cost — $478,121,505) — 167.9%

 

 

 

 

 

496,078,198

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








FFI Institutional Tax-Exempt Fund, 0.25% (g)(h)

 

 

552,231

 

 

552,231

 









Total Short-Term Securities
(Cost — $552,231) — 0.2%

 

 

 

 

 

552,231

 









Total Investments (Cost — $478,673,736*) — 168.1%

 

 

 

 

 

496,630,429

 

Liabilities in Excess of Other Assets — (0.8)%

 

 

 

 

 

(2,491,867

)

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (19.9)%

 

 

 

 

 

(58,645,469

)

Preferred Shares, at Redemption Value — (47.4)%

 

 

 

 

 

(140,027,753

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

295,465,340

 

 

 

 

 

 





 

 


*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

419,909,388

 

 

 

 

 

 




Gross unrealized appreciation

 

 

 

 

$

29,509,255

 

Gross unrealized depreciation

 

 

 

 

 

(11,383,729

)

 

 

 

 

 




Net unrealized appreciation

 

 

 

 

$

18,125,526

 

 

 

 

 

 





 

 

(a)

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


 

 

 

 

 

 

 

 









Counterparty

 

Value

 

Unrealized
Appreciation

 







Goldman Sachs Bank USA

 

$

3,598,424

 

$

20,818

 










 

 

(b)

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

 

 

(c)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(d)

Non-income producing security.

 

 

(e)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(f)

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. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(g)

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


 

 

 

 

 

 

 

 

 

 

 












Affiliate

 

Shares
Held at
April 30,
2009

 

Net
Activity

 

Shares
Held at
April 30,
2010

 

Income

 











FFI Institutional Tax-Exempt Fund

 

 

552,231

 

552,231

 

$

8,720

 













 

 

(h)

Represents the current yield as of report date.


See Notes to Financial Statements.

 

 

 




ANNUAL REPORT

APRIL 30, 2010

49




 

 


 

Schedule of Investments (concluded)

BlackRock MuniVest Fund II, Inc. (MVT)


 

 

 

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

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

 

 

 

 

The inputs or methodologies 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 Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of April 30, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 

 

 

 

 

 

 

 





 

 

Investments in Securities

 





Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

 

$

496,078,198

 

 

 

$

496,078,198

 

Short-Term Securities

 

$

552,231

 

 

 

 

 

 

552,231

 

 

 













Total

 

$

552,231

 

$

496,078,198

 

 

 

$

496,630,429

 

 

 














 

 

1

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


See Notes to Financial Statements.

 

 

 




50

ANNUAL REPORT

APRIL 30, 2010




 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2010

 

BlackRock
Apex Municipal
Fund, Inc.
(APX)

 

BlackRock
MuniAssets
Fund, Inc.
(MUA)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Insured
Fund, Inc.
(MUS)

 

BlackRock
Muni Intermediate
Duration
Fund, Inc.
(MUI)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 



















Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Investments at value — unaffiliated1

 

$

188,254,362

 

$

273,732,712

 

$

510,683,835

 

$

343,111,215

 

$

252,146,795

 

$

278,989,984

 

$

899,619,866

 

$

496,078,198

 

Investments at value — affiliated2

 

 

648,958

 

 

149,925

 

 

7,207,423

 

 

3,354,654

 

 

607,735

 

 

8,653,666

 

 

17,541,876

 

 

552,231

 

Cash

 

 

115,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest receivable

 

 

3,816,134

 

 

5,361,012

 

 

7,396,043

 

 

5,853,910

 

 

4,065,705

 

 

4,225,986

 

 

13,964,064

 

 

8,785,740

 

Investments sold receivable

 

 

1,684,909

 

 

3,590,647

 

 

 

 

90,000

 

 

55,000

 

 

200,056

 

 

2,014,613

 

 

346,927

 

Paydown receivable

 

 

9,408

 

 

13,440

 

 

 

 

 

 

 

 

 

 

 

 

 

Income receivable — affiliated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

327

 

 

 

Prepaid expenses

 

 

16,684

 

 

21,259

 

 

41,393

 

 

22,162

 

 

24,559

 

 

20,167

 

 

74,081

 

 

39,047

 

Other assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

86,366

 

 

 

 

 

























Total assets

 

 

194,545,951

 

 

282,868,995

 

 

525,328,694

 

 

352,431,941

 

 

256,899,794

 

 

292,089,859

 

 

933,301,193

 

 

505,802,143

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Accrued Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Bank overdraft

 

 

 

 

 

 

 

 

 

 

 

 

 

 

56,017

 

 

 

Investments purchased payable

 

 

2,602,255

 

 

3,777,431

 

 

1,218,450

 

 

6,851,260

 

 

5,009,501

 

 

 

 

24,373,136

 

 

9,602,018

 

Income dividends payable — Common Shares

 

 

879,176

 

 

1,320,236

 

 

1,674,083

 

 

1,196,794

 

 

899,449

 

 

954,104

 

 

2,491,288

 

 

1,763,557

 

Investment advisory fees payable

 

 

107,797

 

 

132,566

 

 

227,243

 

 

164,372

 

 

119,837

 

 

117,500

 

 

393,921

 

 

214,741

 

Interest expense and fees payable

 

 

4,964

 

 

7,447

 

 

69,928

 

 

32,126

 

 

25,774

 

 

26,330

 

 

56,297

 

 

49,954

 

Other affiliates payable

 

 

1,163

 

 

1,689

 

 

3,231

 

 

2,106

 

 

1,533

 

 

1,795

 

 

5,588

 

 

3,043

 

Officer’s and Directors’ fees payable

 

 

499

 

 

433

 

 

733

 

 

479

 

 

352

 

 

595

 

 

88,087

 

 

1,007

 

Other accrued expenses payable

 

 

42,531

 

 

42,307

 

 

65,760

 

 

56,570

 

 

47,381

 

 

51,738

 

 

91,149

 

 

79,215

 

 

 

























Total accrued liabilities

 

 

3,638,385

 

 

5,282,109

 

 

3,259,428

 

 

8,303,707

 

 

6,103,827

 

 

1,152,062

 

 

27,555,483

 

 

11,713,535

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Trust certificates3

 

 

7,285,446

 

 

10,755,646

 

 

59,394,596

 

 

41,288,466

 

 

32,019,794

 

 

31,955,414

 

 

57,348,814

 

 

58,595,515

 

 

 

























Total Liabilities

 

 

10,923,831

 

 

16,037,755

 

 

62,654,024

 

 

49,592,173

 

 

38,123,621

 

 

33,107,476

 

 

84,904,297

 

 

70,309,050

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























$25,000 per share liquidation preference, plus unpaid dividends4,5

 

 

 

 

 

 

142,591,476

 

 

83,706,366

 

 

55,054,350

 

 

87,005,179

 

 

287,257,042

 

 

140,027,753

 

 

 

























Net Assets Applicable to Common Shareholders

 

$

183,622,120

 

$

266,831,240

 

$

320,083,194

 

$

219,133,402

 

$

163,721,823

 

$

171,977,204

 

$

561,139,854

 

$

295,465,340

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Investments at cost — unaffiliated

 

$

191,036,266

 

$

278,348,530

 

$

501,696,145

 

$

336,165,825

 

$

245,353,975

 

$

271,246,767

 

$

880,296,838

 

$

478,121,505

 

 

 

 

























 

2Investments at cost — affiliated

 

$

648,958

 

$

149,925

 

$

7,207,423

 

$

3,354,654

 

$

607,735

 

$

8,653,666

 

$

17,541,876

 

$

552,231

 

 

 

 

























3 Represents short-term floating rate certificates issued by tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Preferred Shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Par value $0.025 per share

 

 

 

 

 

 

4,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

























 

Par value $0.05 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,320

 

 

 

 

























 

Par value $0.10 per share

 

 

 

 

 

 

1,128

 

 

3,348

 

 

2,202

 

 

3,480

 

 

11,487

 

 

1,280

 

 

 

 

























5

Preferred Shares authorized

 

 

 

 

 

 

7,480

 

 

5,000

 

 

3,480

 

 

5,360

 

 

12,800

 

 

7,000

 

 

 

 


























See Notes to Financial Statements.

 

 

 




ANNUAL REPORT

APRIL 30, 2010

51




 


 

Statements of Assets and Liabilities (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30, 2010

 

BlackRock
Apex Municipal
Fund, Inc.
(APX)

 

BlackRock
MuniAssets
Fund, Inc.
(MUA)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Insured
Fund, Inc.
(MUS)

 

BlackRock
Muni Intermediate
Duration
Fund, Inc.
(MUI)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 



















Net Assets Applicable to Common Shareholders Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Paid-in capital 6,7

 

$

194,462,599

 

$

295,792,977

 

$

314,556,353

 

$

207,234,061

 

$

153,564,327

 

$

173,657,513

 

$

540,501,506

 

$

280,239,101

 

Undistributed net investment income

 

 

1,404,894

 

 

825,801

 

 

5,467,206

 

 

3,774,667

 

 

3,333,318

 

 

3,457,495

 

 

9,085,845

 

 

5,098,804

 

Accumulated net realized gain (loss)

 

 

(9,463,469

)

 

(25,171,720

)

 

(8,928,055

)

 

1,179,284

 

 

31,358

 

 

(12,881,021

)

 

(7,770,525

)

 

(7,829,258

)

Net unrealized appreciation/depreciation

 

 

(2,781,904

)

 

(4,615,818

)

 

8,987,690

 

 

6,945,390

 

 

6,792,820

 

 

7,743,217

 

 

19,323,028

 

 

17,956,693

 

 

 

























Net Assets Applicable to Common Shareholders

 

$

183,622,120

 

$

266,831,240

 

$

320,083,194

 

$

219,133,402

 

$

163,721,823

 

$

171,977,204

 

$

561,139,854

 

$

295,465,340

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Net Asset Value Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Net asset value per share

 

$

9.19

 

$

12.63

 

$

10.90

 

$

15.75

 

$

14.65

 

$

13.34

 

$

14.75

 

$

14.41

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   6 Common shares outstanding, $0.10 par value

 

 

19,981,270

 

 

21,123,770

 

 

29,369,874

 

 

13,916,205

 

 

11,173,277

 

 

12,893,293

 

 

38,034,934

 

 

20,506,477

 

 

 

























   7 Common Shares authorized

 

 

150 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

 


























See Notes to Financial Statements.

 

 

 




52

ANNUAL REPORT

APRIL 30, 2010




 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30, 2010

 

BlackRock
Apex Municipal
Fund, Inc.
(APX)

 

BlackRock
MuniAssets
Fund, Inc.
(MUA)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Insured
Fund, Inc.
(MUS)

 

BlackRock
Muni Intermediate
Duration
Fund, Inc.
(MUI)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 



















Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Interest

 

$

12,891,160

 

$

18,606,658

 

$

25,783,574

 

$

18,343,903

 

$

13,344,126

 

$

14,025,306

 

$

44,770,058

 

$

27,524,162

 

Income — affiliated

 

 

2,997

 

 

4,762

 

 

20,949

 

 

13,016

 

 

8,405

 

 

28,477

 

 

30,641

 

 

8,720

 

 

 

























Total income

 

 

12,894,157

 

 

18,611,420

 

 

25,804,523

 

 

18,356,919

 

 

13,352,531

 

 

14,053,783

 

 

44,800,699

 

 

27,532,882

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Investment advisory

 

 

1,167,661

 

 

1,436,373

 

 

2,569,625

 

 

1,816,643

 

 

1,325,091

 

 

1,583,094

 

 

4,857,791

 

 

2,389,853

 

Accounting services

 

 

47,367

 

 

75,115

 

 

131,590

 

 

87,643

 

 

69,845

 

 

76,855

 

 

216,437

 

 

142,216

 

Transfer agent

 

 

37,125

 

 

37,795

 

 

62,125

 

 

47,235

 

 

37,073

 

 

37,179

 

 

90,358

 

 

58,528

 

Professional

 

 

35,212

 

 

35,920

 

 

54,812

 

 

63,418

 

 

57,081

 

 

63,836

 

 

90,339

 

 

64,451

 

Officer and Directors

 

 

20,754

 

 

29,863

 

 

37,290

 

 

24,728

 

 

18,564

 

 

20,299

 

 

89,673

 

 

33,372

 

Custodian

 

 

11,876

 

 

15,202

 

 

26,774

 

 

18,104

 

 

14,253

 

 

14,977

 

 

42,521

 

 

24,295

 

Printing

 

 

10,636

 

 

15,144

 

 

27,219

 

 

17,692

 

 

19,047

 

 

15,301

 

 

39,503

 

 

24,944

 

Registration

 

 

9,504

 

 

9,221

 

 

10,074

 

 

9,330

 

 

9,178

 

 

9,330

 

 

12,969

 

 

9,558

 

Commissions for Preferred Shares

 

 

 

 

 

 

219,185

 

 

129,948

 

 

84,752

 

 

133,156

 

 

437,803

 

 

212,798

 

Miscellaneous

 

 

42,767

 

 

34,024

 

 

89,038

 

 

70,582

 

 

64,107

 

 

66,591

 

 

124,411

 

 

91,094

 

 

 

























Total expenses excluding interest expense and fees

 

 

1,382,902

 

 

1,688,657

 

 

3,227,732

 

 

2,285,323

 

 

1,698,991

 

 

2,020,618

 

 

6,001,805

 

 

3,051,109

 

Interest expense and fees1

 

 

71,622

 

 

105,788

 

 

482,899

 

 

292,976

 

 

227,314

 

 

254,595

 

 

474,692

 

 

410,606

 

 

 

























Total expenses

 

 

1,454,524

 

 

1,794,445

 

 

3,710,631

 

 

2,578,299

 

 

1,926,305

 

 

2,275,213

 

 

6,476,497

 

 

3,461,715

 

Less fees waived by advisor

 

 

(1,115

)

 

(1,650

)

 

(9,932

)

 

(6,077

)

 

(4,160

)

 

(278,115

)

 

(558,934

)

 

(3,780

)

 

 

























Total expenses after fees waived

 

 

1,453,409

 

 

1,792,795

 

 

3,700,699

 

 

2,572,222

 

 

1,922,145

 

 

1,997,098

 

 

5,917,563

 

 

3,457,935

 

 

 

























Net investment income

 

 

11,440,748

 

 

16,818,625

 

 

22,103,824

 

 

15,784,697

 

 

11,430,386

 

 

12,056,685

 

 

38,883,136

 

 

24,074,947

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(502,612

)

 

(319,985

)

 

(2,621,626

)

 

1,021,229

 

 

842,124

 

 

(277,980

)

 

702,083

 

 

1,415,843

 

Financial futures contracts

 

 

(116,233

)

 

(185,318

)

 

106,827

 

 

(37,628

)

 

6,150

 

 

10,952

 

 

33,850

 

 

224,015

 

 

 

























 

 

 

(618,845

)

 

(505,303

)

 

(2,514,799

)

 

983,601

 

 

848,274

 

 

(267,028

)

 

735,933

 

 

1,639,858

 

 

 

























Net change in unrealized appreciation/depreciation on investments

 

 

30,737,544

 

 

43,885,403

 

 

33,008,361

 

 

32,294,227

 

 

22,414,189

 

 

12,924,699

 

 

59,229,788

 

 

45,862,257

 

 

 

























Total realized and unrealized gain

 

 

30,118,699

 

 

43,380,100

 

 

30,493,562

 

 

33,277,828

 

 

23,262,463

 

 

12,657,671

 

 

59,965,721

 

 

47,502,115

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Dividends and Distributions to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Net investment income

 

 

 

 

 

 

(972,174

)

 

(478,200

)

 

(252,975

)

 

(395,183

)

 

(4,345,317

)

 

(992,540

)

Net realized gain

 

 

 

 

 

 

 

 

(21,023

)

 

 

 

 

 

 

 

 

 

 

























Total Dividends and Distributions to Preferred Shareholders

 

 

 

 

 

 

(972,174

)

 

(499,223

)

 

(252,975

)

 

(395,183

)

 

(4,345,317

)

 

(992,540

)

 

 

























Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

41,559,447

 

$

60,198,725

 

$

51,625,212

 

$

48,563,302

 

$

34,439,874

 

$

24,319,173

 

$

94,503,540

 

$

70,584,522

 

 

 


























 

 

 

 

1

Related to tender option bond trusts.


See Notes to Financial Statements.

 

 

 




ANNUAL REPORT

APRIL 30, 2010

53




 


 

Statements of Changes in Net Assets


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Apex
Municipal Fund, Inc. (APX)

 

BlackRock MuniAssets
Fund, Inc. (MUA)

 

 

 


 


 

Increase (Decrease) in Net Assets:

 

Year Ended
April 30,
2010

 

Period
July 1,
2008 to
April 30,
2009

 

Year Ended
June 30,
2008

 

Year Ended
April 30,
2010

 

Period
June 1,
2008 to
April 30,
2009

 

Year Ended
May 31,
2008

 















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

11,440,748

 

$

9,485,633

 

$

10,673,792

 

$

16,818,625

 

$

15,102,071

 

$

16,146,294

 

Net realized gain (loss)

 

 

(618,845

)

 

(1,901,804

)

 

116,440

 

 

(505,303

)

 

(1,025,903

)

 

(1,507,632

)

Net change in unrealized appreciation/depreciation

 

 

30,737,544

 

 

(27,472,314

)

 

(15,493,679

)

 

43,885,403

 

 

(44,649,301

)

 

(19,985,195

)

 

 









 










Net increase (decrease) in net assets resulting from operations

 

 

41, 559,447

 

 

(19,888,485

)

 

(4,703,447

)

 

60,198,725

 

 

(30,573,133

)

 

(5,346,533

)

 

 









 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Dividends and Distributions to Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

 

(11,310,084

)

 

(9,259,509

)

 

(11,460,645

)

 

(17,164,842

)

 

(15,527,663

)

 

(17,002,831

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(65,858

)

 

 









 










Decrease in net assets resulting from dividends and distributions to shareholders

 

 

(11,310,084

)

 

(9,259,509

)

 

(11,460,645

)

 

(17,164,842

)

 

(15,527,663

)

 

(17,068,689

)

 

 









 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Reinvestment of dividends and distributions

 

 

412,211

 

 

452,841

 

 

993,437

 

 

1,897,902

 

 

1,086,978

 

 

1,961,372

 

 

 









 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total increase (decrease) in net assets

 

 

30,661,574

 

 

(28,695,153

)

 

(15,170,655

)

 

44,931,785

 

 

(45,013,818

)

 

(20,453,850

)

Beginning of period

 

 

152,960,546

 

 

181,655,699

 

 

196,826,354

 

 

221,899,455

 

 

266,913,273

 

 

287,367,123

 

 

 









 










End of period

 

$

183,622,120

 

$

152,960,546

 

$

181,655,699

 

$

266,831,240

 

$

221,899,455

 

$

266,913,273

 

 

 









 










Undistributed net investment income

 

$

1,404,894

 

$

1,296,579

 

$

1,093,688

 

$

825,801

 

$

1,210,315

 

$

1,666,151

 

 

 









 











See Notes to Financial Statements.

 

 

 




54

ANNUAL REPORT

APRIL 30, 2010




 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
MuniEnhanced Fund, Inc. (MEN)

 

BlackRock
MuniHoldings Fund, Inc. (MHD)

 

 

 


 



 

 

 

 

Period
February 1,
2009 to
April 30,
2009

 

 

 

 

 

 

 

Year Ended
April 30,
2010

 

 

Year Ended
January 31,
2009

 

Year Ended
April 30,

 

Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 

 

 

 



 

 

 

 

2010

 

2009

 


















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

$

22,103,824

 

$

5,158,666

 

$

21,647,889

 

$

15,784,697

 

$

14,953,226

 

Net realized gain (loss)

 

 

(2,514,799

)

 

(964,506

)

 

(5,890,560

)

 

983,601

 

 

796,686

 

Net change in unrealized appreciation/depreciation

 

 

33,008,361

 

 

18,357,213

 

 

(54,032,922

)

 

32,294,227

 

 

(27,850,295

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(972,174

)

 

(373,520

)

 

(5,591,529

)

 

(478,200

)

 

(2,473,001

)

Net realized gain

 

 

 

 

 

 

 

 

(21,023

)

 

(75,129

)

 

 









 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

51,625,212

 

 

22,177,853

 

 

(43,867,122

)

 

48,563,302

 

 

(14,648,513

)

 

 









 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

 

(18,620,500

)

 

(3,788,714

)

 

(15,154,855

)

 

(13,840,853

)

 

(11,874,169

)

Net realized gain

 

 

 

 

 

 

 

 

(323,547

)

 

(221,635

)

 

 









 







Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(18,620,500

)

 

(3,788,714

)

 

(15,154,855

)

 

(14,164,400

)

 

(12,095,804

)

 

 









 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Reinvestment of dividends and distributions

 

 

 

 

 

 

 

 

49,523

 

 

 

 

 









 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

33,004,712

 

 

18,389,139

 

 

(59,021,977

)

 

34,448,425

 

 

(26,744,317

)

Beginning of period

 

 

287,078,482

 

 

268,689,343

 

 

327,711,320

 

 

184,684,977

 

 

211,429,294

 

 

 









 







End of period

 

$

320,083,194

 

$

287,078,482

 

$

268,689,343

 

$

219,133,402

 

$

184,684,977

 

 

 









 







Undistributed net investment income

 

$

5,467,206

 

$

2,930,536

 

$

2,372,225

 

$

3,774,667

 

$

2,334,885

 

 

 









 








See Notes to Financial Statements.

 

 

 




ANNUAL REPORT

APRIL 30, 2010

55




 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
MuniHoldings Fund II, Inc. (MUH)

 

BlackRock MuniHoldings
Insured Fund, Inc. (MUS)

 

 

 


 


 

 

 

 

Period
August 1,
2008 to

April 30,
2009

 

 

 

Year Ended
April 30,

 

 

 

Year Ended
April 30,
2010

 

 

Year Ended
July 31,
2008

 

 

Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 

 

 

 


 

 

 

 

2010

 

2009

 


















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

$

11,430,386

 

$

7,995,205

 

$

11,633,362

 

$

12,056,685

 

$

11,945,370

 

Net realized gain (loss)

 

 

848,274

 

 

(653,515

)

 

1,066,947

 

 

(267,028

)

 

(8,311,813

)

Net change in unrealized appreciation/depreciation

 

 

22,414,189

 

 

(12,946,433

)

 

(13,811,243

)

 

12,924,699

 

 

(7,075,567

)

Dividends to Preferred Shareholders from net investment income

 

 

(252,975

)

 

(1,093,524

)

 

(2,964,352

)

 

(395,183

)

 

(2,507,663

)

 

 









 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

34,439,874

 

 

(6,698,267

)

 

(4,075,286

)

 

24,319,173

 

 

(5,949,673

)

 

 









 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

 

(10,095,056

)

 

(6,557,719

)

 

(8,477,052

)

 

(10,496,334

)

 

(7,499,768

)

 

 









 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Reinvestment of dividends

 

 

 

 

 

 

 

 

93,344

 

 

 

 

 









 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

24,344,818

 

 

(13,255,986

)

 

(12,552,338

)

 

13,916,183

 

 

(13,449,441

)

Beginning of period

 

 

139,377,005

 

 

152,632,991

 

 

165,185,329

 

 

158,061,021

 

 

171,510,462

 

 

 









 







End of period

 

$

163,721,823

 

$

139,377,005

 

$

152,632,991

 

$

171,977,204

 

$

158,061,021

 

 

 









 







Undistributed net investment income

 

$

3,333,318

 

$

2,284,534

 

$

1,985,174

 

$

3,457,495

 

$

2,284,843

 

 

 









 








 

 

 

See Notes to Financial Statements.


56

ANNUAL REPORT

APRIL 30, 2010




 


 

Statements of Changes in Net Assets (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Muni Intermediate
Duration Fund, Inc. (MUI)

 

BlackRock MuniVest
Fund II, Inc. (MVT)

 

 

 


 


Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 

Year Ended
April 30,
2010

 

Period
June 1,
2008 to
April 30,
2009

 

Year Ended
May 31,
2008

 

Year Ended
April 30,
2010

 

Period
November 1,
2008 to
April 30,
2009

 

Year Ended
October 31,
2008

 















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

38,883,136

 

$

33,913,505

 

$

39,370,266

 

$

24,074,947

 

$

10,876,904

 

$

22,771,036

 

Net realized gain (loss)

 

 

735,933

 

 

(6,621,611

)

 

(994,843

)

 

1,639,858

 

 

700,399

 

 

(5,886,789

)

Net change in unrealized appreciation/depreciation

 

 

59,229,788

 

 

(47,262,844

)

 

(22,744,454

)

 

45,862,257

 

 

18,630,931

 

 

(65,016,525

)

Dividends to Preferred Shareholders from net investment income

 

 

(4,345,317

)

 

(8,817,093

)

 

(12,598,505

)

 

(992,540

)

 

(1,057,535

)

 

(6,547,531

)

 

 









 










Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

94,503,540

 

 

(28,788,043

)

 

3,032,464

 

 

70,584,522

 

 

29,150,699

 

 

(54,679,809

)

 

 









 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

 

(29,610,196

)

 

(24,380,887

)

 

(27,841,571

)

 

(20,330,657

)

 

(8,777,352

)

 

(17,375,256

)

 

 









 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Reinvestment of dividends

 

 

 

 

 

 

 

 

1,628,414

 

 

 

 

1,428,596

 

 

 









 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

64,893,344

 

 

(53,168,930

)

 

(24,809,107

)

 

51,882,279

 

 

20,373,347

 

 

(70,626,469

)

Beginning of period

 

 

496,246,510

 

 

549,415,440

 

 

574,224,547

 

 

243,583,061

 

 

223,209,714

 

 

293,836,183

 

 

 









 










End of period

 

$

561,139,854

 

$

496,246,510

 

$

549,415,440

 

$

295,465,340

 

$

243,583,061

 

$

223,209,714

 

 

 









 










Undistributed net investment income

 

$

9,085,845

 

$

4,159,528

 

$

3,452,820

 

$

5,098,804

 

$

2,348,021

 

$

1,127,498

 

 

 









 











 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

57




 


 

Statements of Cash Flows


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30, 2010

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Insured
Fund, Inc.
(MUS)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 













Cash Provided by Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net increase in net assets resulting from operations, excluding dividends and distributions to Preferred Shareholders

 

$

52,597,386

 

$

49,062,525

 

$

34,692,849

 

$

24,714,356

 

$

71,577,062

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in interest receivable

 

 

409,532

 

 

(267,330

)

 

(346,963

)

 

(405,202

)

 

(137,528

)

Increase in prepaid expenses

 

 

(8,588

)

 

(3,827

)

 

(5,005

)

 

(4,795

)

 

(4,363

)

Decrease in other assets

 

 

 

 

 

 

 

 

1,310

 

 

 

Increase in investment advisory fees payable

 

 

28,231

 

 

28,167

 

 

20,001

 

 

17,273

 

 

36,957

 

Decrease in interest expense and fees payable

 

 

(84,278

)

 

(91,596

)

 

(75,691

)

 

(76,564

)

 

(86,037

)

Increase in other affiliates payable

 

 

1,197

 

 

402

 

 

297

 

 

55

 

 

551

 

Decrease in other accrued expenses payable

 

 

(63,062

)

 

(5,899

)

 

(19,469

)

 

(6,703

)

 

(14,771

)

Increase in Officer’s and Directors’ fees payable

 

 

157

 

 

120

 

 

91

 

 

263

 

 

360

 

Net realized and unrealized gain

 

 

(30,386,735

)

 

(33,315,841

)

 

(23,256,604

)

 

(12,646,721

)

 

(47,278,080

)

Amortization of premium and discount on investments

 

 

(1,268,256

)

 

232,104

 

 

(222,156

)

 

521,328

 

 

91,070

 

Proceeds from sales of long-term investments

 

 

115,521,029

 

 

131,637,075

 

 

95,357,817

 

 

59,976,050

 

 

140,845,699

 

Purchases of long-term investments

 

 

(120,956,902

)

 

(135,956,842

)

 

(98,798,337

)

 

(71,659,983

)

 

(149,116,764

)

Net proceeds from sales (purchases) of short-term securities

 

 

6,095,070

 

 

(1,444,317

)

 

(494,909

)

 

11,673,037

 

 

(552,231

)

 

 
















Cash provided by operating activities

 

$

21,884,781

 

$

9,874,741

 

$

6,851,921

 

$

12,103,704

 

$

15,361,925

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash Used for Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Payments on redemption of Preferred Shares

 

 

(16,275,000

)

 

(8,225,000

)

 

(5,950,000

)

 

(7,200,000

)

 

(10,800,000

)

Cash receipts from trust certificates

 

 

23,667,366

 

 

16,880,510

 

 

12,246,721

 

 

8,385,972

 

 

21,689,285

 

Cash payments for trust certificates

 

 

(10,124,307

)

 

(5,880,000

)

 

(4,365,000

)

 

(2,820,000

)

 

(7,860,211

)

Cash dividends and distributions paid to Common Shareholders

 

 

(18,209,322

)

 

(13,905,906

)

 

(9,899,523

)

 

(10,073,867

)

 

(18,386,041

)

Cash dividends and distributions paid to Preferred Shareholders

 

 

(980,703

)

 

(502,406

)

 

(252,596

)

 

(400,224

)

 

(999,406

)

Decrease in bank overdraft

 

 

 

 

 

 

 

 

4,415

 

 

 

 

 
















Cash used for financing activities

 

 

(21,921,966

)

 

(11,632,802

)

 

(8,220,398

)

 

(12,103,704

)

 

(16,356,373

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net decrease in cash

 

 

(37,185

)

 

(1,758,061

)

 

(1,368,477

)

 

 

 

(994,448

)

Cash at beginning of year

 

 

37,185

 

 

1,758,061

 

 

1,368,477

 

 

 

 

994,448

 

 

 
















Cash at end of year

 

 

 

 

 

 

 

 

 

 

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash paid during the year for interest

 

$

567,177

 

$

384,572

 

$

303,005

 

$

331,159

 

$

496,643

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Noncash Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Capital shares issued in reinvestment of dividends and distributions paid to shareholders

 

 

 

$

49,523

 

 

 

$

93,344

 

$

1,628,414

 

 

 

















 

 

 

See Notes to Financial Statements.


58

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Financial Highlights

BlackRock Apex Municipal Fund, Inc. (APX)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
April 30,
2010

 

Period
July 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30,

 

 

 

 

 



 

 

 

 

2008

 

2007

 

2006

 

2005

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

7.67

 

$

9.14

 

$

9.95

 

$

9.90

 

$

9.82

 

$

9.13

 

 

 



















Net investment income1

 

 

0.57

 

 

0.48

 

 

0.54

 

 

0.58

 

 

0.58

 

 

0.58

 

Net realized and unrealized gain (loss)

 

 

1.51

 

 

(1.48

)

 

(0.77

)

 

0.06

 

 

0.08

 

 

0.69

 

 

 



















Net increase (decrease) from investment operations

 

 

2.08

 

 

(1.00

)

 

(0.23

)

 

0.64

 

 

0.66

 

 

1.27

 

 

 



















Dividends from net investment income

 

 

(0.56

)

 

(0.47

)

 

(0.58

)

 

(0.59

)

 

(0.58

)

 

(0.58

)

 

 



















Net asset value, end of period

 

$

9.19

 

$

7.67

 

$

9.14

 

$

9.95

 

$

9.90

 

$

9.82

 

 

 



















Market price, end of period

 

$

8.87

 

$

7.72

 

$

9.28

 

$

10.23

 

$

10.25

 

$

9.48

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

27.99

%

 

(10.81

)%3

 

(2.40

)%

 

6.48

%

 

7.00

%

 

14.67

%

 

 



















Based on market price

 

 

22.73

%

 

(11.58

)%3

 

(3.61

)%

 

5.73

%

 

14.76

%

 

22.36

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses

 

 

0.84

%

 

0.91

%5

 

0.85

%

 

0.80

%

 

0.81

%

 

0.80

%

 

 



















Total expenses after fees waived

 

 

0.84

%

 

0.91

%5

 

0.84

%

 

0.80

%

 

0.80

%

 

0.80

%

 

 



















Total expenses after fees waived and excluding interest expense and fees4

 

 

0.80

%

 

0.84

%5

 

0.80

%

 

0.80

%

 

0.80

%

 

0.80

%

 

 



















Net investment income

 

 

6.64

%

 

7.16

%5

 

5.64

%

 

5.75

%

 

5.83

%

 

6.11

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets, end of period (000)

 

$

183,622

 

$

152,961

 

$

181,656

 

$

196,826

 

$

194,646

 

$

192,475

 

 

 



















Portfolio turnover

 

 

46

%

 

20

%

 

25

%

 

22

%

 

19

%

 

22

%

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

5

Annualized.


 

 

 

 

See Notes to Financial Statements.


 

ANNUAL REPORT

APRIL 30, 2010

59




 

 


 

 

Financial Highlights

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
April 30,
2010

 

Period
June 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended May 31,

 

 

 

 

 



 

 

 

 

2008

 

2007

 

2006

 

2005

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

10.59

 

$

12.79

 

$

13.87

 

$

13.65

 

$

13.40

 

$

12.36

 

 

 



















Net investment income1

 

 

0.80

 

 

0.72

 

 

0.78

 

 

0.82

 

 

0.81

 

 

0.81

 

Net realized and unrealized gain (loss)

 

 

2.06

 

 

(2.18

)

 

(1.04

)

 

0.24

 

 

0.27

 

 

1.04

 

 

 



















Net increase (decrease) from investment operations

 

 

2.86

 

 

(1.46

)

 

(0.26

)

 

1.06

 

 

1.08

 

 

1.85

 

 

 



















Dividends and distributions from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.82

)

 

(0.74

)

 

(0.82

)

 

(0.84

)

 

(0.83

)

 

(0.81

)

Net realized gain

 

 

 

 

 

 

(0.00

)2

 

 

 

 

 

 

 

 



















Total dividends and distributions

 

 

(0.82

)

 

(0.74

)

 

(0.82

)

 

(0.84

)

 

(0.83

)

 

(0.81

)

 

 



















Net asset value, end of period

 

$

12.63

 

$

10.59

 

$

12.79

 

$

13.87

 

$

13.65

 

$

13.40

 

 

 



















Market price, end of period

 

$

12.65

 

$

10.91

 

$

13.35

 

$

15.29

 

$

14.13

 

$

13.27

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

27.72

%

 

(11.29

)%4

 

(1.90

)%

 

7.72

%

 

8.31

%

 

15.65

%

 

 



















Based on market price

 

 

24.17

%

 

(12.45

)%4

 

(7.12

)%

 

14.71

%

 

13.22

%

 

24.39

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses

 

 

0.72

%

 

0.77

%6

 

0.70

%

 

0.68

%

 

0.68

%

 

0.67

%

 

 



















Total expenses after fees waived and paid indirectly

 

 

0.72

%

 

0.76

%6

 

0.69

%

 

0.68

%

 

0.68

%

 

0.67

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5

 

 

0.67

%

 

0.70

%6

 

0.66

%

 

0.68

%

 

0.68

%

 

0.67

%

 

 



















Net investment income

 

 

6.72

%

 

7.13

%6

 

5.81

%

 

5.91

%

 

5.97

%

 

6.30

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets, end of period (000)

 

$

266,831

 

$

221,899

 

$

266,913

 

$

287,367

 

$

280,793

 

$

273,382

 

 

 



















Portfolio turnover

 

 

44

%

 

23

%

 

23

%

 

25

%

 

17

%

 

20

%

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

6

Annualized.


 

 

 

See Notes to Financial Statements.


60

ANNUAL REPORT

APRIL 30, 2010




 

 


 

 

Financial Highlights

BlackRock MuniEnhanced Fund, Inc. (MEN)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
April 30,
2010

 

Period
February 1,
2009 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended January 31,

 

 

 

 

 



 

 

 

 

2009

 

2008

 

2007

 

2006

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

9.77

 

$

9.15

 

$

11.16

 

$

11.55

 

$

11.52

 

$

11.85

 

 

 



















Net investment income1

 

 

0.75

 

 

0.18

 

 

0.72

 

 

0.78

 

 

0.76

 

 

0.77

 

Net realized and unrealized gain (loss)

 

 

1.04

 

 

0.58

 

 

(2.02

)

 

(0.41

)

 

0.06

 

 

(0.22

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.03

)

 

(0.01

)

 

(0.19

)

 

(0.24

)

 

(0.22

)

 

(0.16

)

 

 



















Net increase (decrease) from investment operations

 

 

1.76

 

 

0.75

 

 

(1.49

)

 

0.13

 

 

0.60

 

 

0.39

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.63

)

 

(0.13

)

 

(0.52

)

 

(0.52

)

 

(0.57

)

 

(0.72

)

 

 



















Net asset value, end of period

 

$

10.90

 

$

9.77

 

$

9.15

 

$

11.16

 

$

11.55

 

$

11.52

 

 

 



















Market price, end of period

 

$

10.81

 

$

8.88

 

$

8.31

 

$

10.66

 

$

10.77

 

$

11.03

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

18.76

%

 

8.40

%3

 

(13.19

)%

 

1.44

%

 

5.66

%

 

3.63

%

 

 



















Based on market price

 

 

29.59

%

 

8.48

%3

 

(17.46

)%

 

3.92

%

 

2.90

%

 

7.58

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.20

%

 

1.46

%6

 

1.77

%

 

1.72

%

 

1.69

%

 

1.51

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.20

%

 

1.45

%6

 

1.76

%

 

1.72

%

 

1.69

%

 

1.51

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,5

 

 

1.04

%

 

1.22

%6

 

1.18

%

 

1.08

%

 

1.08

%

 

1.07

%

 

 



















Net investment income4

 

 

7.17

%

 

7.72

%6

 

7.43

%

 

6.85

%

 

6.57

%

 

6.63

%

 

 



















Dividends to Preferred Shareholders

 

 

0.32

%

 

0.56

%6

 

1.92

%

 

2.08

%

 

1.88

%

 

1.34

%

 

 



















Net investment income to Common Shareholders

 

 

6.85

%

 

7.16

%6

 

5.51

%

 

4.77

%

 

4.69

%

 

5.29

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

320,083

 

$

287,078

 

$

268,689

 

$

327,711

 

$

339,237

 

$

338,450

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

142,575

 

$

158,850

 

$

158,850

 

$

187,000

 

$

187,000

 

$

187,000

 

 

 



















Portfolio turnover

 

 

23

%

 

6

%

 

24

%

 

18

%

 

31

%

 

22

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

81,128

 

$

70,185

 

$

67,294

 

$

68,834

 

$

70,373

 

$

70,262

 

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

6

Annualized.


 

 

 

 

See Notes to Financial Statements.


 

ANNUAL REPORT

APRIL 30, 2010

61




 

 


 

 

Financial Highlights

BlackRock MuniHoldings Fund, Inc. (MHD)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 



 

 

2010

 

2009

 

2008

 

2007

 

2006

 













Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net asset value, beginning of year

 

$

13.27

 

$

15.20

 

$

16.51

 

$

16.14

 

$

16.31

 

 

 
















Net investment income1

 

 

1.13

 

 

1.07

 

 

1.16

 

 

1.17

 

 

1.16

 

Net realized and unrealized gain (loss)

 

 

2.39

 

 

(1.94

)

 

(1.20

)

 

0.42

 

 

(0.00

)2

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.03

)

 

(0.18

)

 

(0.31

)

 

(0.32

)

 

(0.23

)

Net realized gain

 

 

(0.00

)2

 

(0.01

)

 

(0.03

)

 

 

 

 

 

 
















Net increase (decrease) from investment operations

 

 

3.49

 

 

(1.06

)

 

(0.38

)

 

1.27

 

 

0.93

 

 

 
















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.99

)

 

(0.85

)

 

(0.85

)

 

(0.90

)

 

(1.08

)

Net realized gain

 

 

(0.02

)

 

(0.02

)

 

(0.08

)

 

 

 

 

 

 
















Total dividends and distributions to Common Shareholders

 

 

(1.01

)

 

(0.87

)

 

(0.93

)

 

(0.90

)

 

(1.08

)

 

 
















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

(0.02

)

 

 
















Net asset value, end of year

 

$

15.75

 

$

13.27

 

$

15.20

 

$

16.51

 

$

16.14

 

 

 
















Market price, end of year

 

$

15.70

 

$

11.97

 

$

14.77

 

$

16.49

 

$

16.20

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Based on net asset value

 

 

27.31

%

 

(6.24

)%

 

(2.08

)%

 

8.06

%

 

5.69

%

 

 
















Based on market price

 

 

40.68

%

 

(12.97

)%

 

(4.74

)%

 

7.52

%

 

7.34

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total expenses4

 

 

1.25

%

 

1.65

%

 

1.56

%

 

1.54

%

 

1.30

%

 

 
















Total expenses after fees waived and paid indirectly4

 

 

1.25

%

 

1.64

%

 

1.56

%

 

1.54

%

 

1.30

%

 

 
















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,5

 

 

1.11

%

 

1.25

%

 

1.20

%

 

1.17

%

 

1.15

%

 

 
















Net investment income4

 

 

7.67

%

 

7.98

%

 

7.27

%

 

7.14

%

 

7.15

%

 

 
















Dividends to Preferred Shareholders

 

 

0.24

%

 

1.32

%

 

1.96

%

 

1.93

%

 

1.45

%

 

 
















Net investment income to Common Shareholders

 

 

7.43

%

 

6.66

%

 

5.31

%

 

5.20

%

 

5.70

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net assets applicable to Common Shareholders, end of year (000)

 

$

219,133

 

$

184,685

 

$

211,429

 

$

229,376

 

$

223,658

 

 

 
















Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)

 

$

83,700

 

$

91,925

 

$

125,000

 

$

125,000

 

$

125,000

 

 

 
















Portfolio turnover

 

 

41

%

 

19

%

 

30

%

 

20

%

 

45

%

 

 
















Asset coverage per Preferred Share at $25,000 liquidation preference, end of year

 

$

90,454

 

$

75,230

 

$

67,294

 

$

70,889

 

$

69,742

 

 

 

















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.


62

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Financial Highlights

BlackRock MuniHoldings Fund II, Inc. (MUH)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
August 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
April 30,
2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

 

 

 



 

 

 

 

2008

 

2007

 

2006

 

2005

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.47

 

$

13.66

 

$

14.78

 

$

14.82

 

$

15.03

 

$

13.98

 

 

 



















Net investment income1

 

 

1.02

 

 

0.72

 

 

1.04

 

 

1.05

 

 

1.04

 

 

1.08

 

Net realized and unrealized gain (loss)

 

 

2.08

 

 

(1.22

)

 

(1.14

)

 

(0.05

)

 

(0.11

)

 

1.15

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.10

)

 

(0.26

)

 

(0.27

)

 

(0.23

)

 

(0.14

)

 

 



















Net increase (decrease) from investment operations

 

 

3.08

 

 

(0.60

)

 

(0.36

)

 

0.73

 

 

0.70

 

 

2.09

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.90

)

 

(0.59

)

 

(0.76

)

 

(0.77

)

 

(0.91

)

 

(1.04

)

 

 



















Net asset value, end of period

 

$

14.65

 

$

12.47

 

$

13.66

 

$

14.78

 

$

14.82

 

$

15.03

 

 

 



















Market price, end of period

 

$

14.68

 

$

11.33

 

$

13.01

 

$

13.99

 

$

14.12

 

$

15.25

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

25.71

%

 

(3.55

)%3 

 

(2.30

)%

 

5.08

%

 

4.89

%

 

15.46

%

 

 



















Based on market price

 

 

38.64

%

 

(7.99

)%3

 

(1.69

)%

 

4.39

%

 

(1.50

)%

 

21.04

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.25

%

 

1.60

%6

 

1.55

%

 

1.63

%

 

1.44

%

 

1.27

%

 

 



















Total expenses after fees waived4

 

 

1.25

%

 

1.60

%6

 

1.55

%

 

1.63

%

 

1.44

%

 

1.27

%

 

 



















Total expenses after fees waived and excluding interest expense and fees4,5

 

 

1.10

%

 

1.22

%6

 

1.18

%

 

1.19

%

 

1.18

%

 

1.19

%

 

 



















Net investment income4

 

 

7.41

%

 

7.84

%6

 

7.07

%

 

6.97

%

 

7.04

%

 

7.38

%

 

 



















Dividends to Preferred Shareholders

 

 

0.16

%

 

1.07

%6

 

1.79

%

 

1.82

%

 

1.55

%

 

0.98

%

 

 



















Net investment income to Common Shareholders

 

 

7.25

%

 

6.77

%6

 

5.28

%

 

5.15

%

 

5.49

%

 

6.41

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

163,722

 

$

139,377

 

$

152,633

 

$

165,185

 

$

165,565

 

$

167,588

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

55,050

 

$

61,000

 

$

61,000

 

$

87,000

 

$

87,000

 

$

87,000

 

 

 



















Portfolio turnover

 

 

41

%

 

19

%

 

28

%

 

15

%

 

49

%

 

38

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

99,353

 

$

81,123

 

$

87,562

 

$

72,478

 

$

72,555

 

$

73,163

 

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

6

Annualized.


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

63




 

 



 

 

Financial Highlights

BlackRock MuniHoldings Insured Fund, Inc. (MUS)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 


 

 

2010

 

2009

 

2008

 

2007

 

2006

 













Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net asset value, beginning of year

 

$

12.27

 

$

13.31

 

$

14.10

 

$

13.80

 

$

14.44

 

 

 
















Net investment income1

 

 

0.94

 

 

0.93

 

 

1.05

 

 

0.93

 

 

0.97

 

Net realized and unrealized gain (loss)

 

 

0.97

 

 

(1.20

)

 

(0.87

)

 

0.36

 

 

(0.50

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.03

)

 

(0.19

)

 

(0.38

)

 

(0.36

)

 

(0.28

)

 

 
















Net increase (decrease) from investment operations

 

 

1.88

 

 

(0.46

)

 

(0.20

)

 

0.93

 

 

0.19

 

 

 
















Dividends to Common Shareholders from net investment income

 

 

(0.81

)

 

(0.58

)

 

(0.59

)

 

(0.63

)

 

(0.83

)

 

 
















Net asset value, end of year

 

$

13.34

 

$

12.27

 

$

13.31

 

$

14.10

 

$

13.80

 

 

 
















Market price, end of year

 

$

13.40

 

$

10.87

 

$

11.97

 

$

13.13

 

$

13.10

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Based on net asset value

 

 

16.05

%

 

(2.52

)%

 

(0.95

)%

 

7.29

%

 

1.46

%

 

 
















Based on market price

 

 

31.59

%

 

(3.97

) %

 

(4.34

)%

 

5.25

%

 

1.51

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total expenses3

 

 

1.36

%

 

1.88

%

 

1.64

%

 

1.67

%

 

1.65

%

 

 
















Total expenses after fees waived3

 

 

1.20

%

 

1.65

%

 

1.51

%

 

1.56

%

 

1.54

%

 

 
















Total expenses after fees waived and excluding interest expense and fees3,4

 

 

1.04

%

 

1.17

%

 

1.27

%

 

1.23

%

 

1.24

%

 

 
















Net investment income3

 

 

7.23

%

 

7.69

%

 

7.72

%

 

6.62

%

 

6.87

%

 

 
















Dividends to Preferred Shareholders

 

 

0.24

%

 

1.61

%

 

2.80

%

 

2.59

%

 

2.00

%

 

 
















Net investment income to Common Shareholders

 

 

6.99

%

 

6.08

%

 

4.92

%

 

4.03

%

 

4.87

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net assets applicable to Common Shareholders, end of year (000)

 

$

171,977

 

$

158,061

 

$

171,510

 

$

181,640

 

$

177,790

 

 

 
















Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)

 

$

87,000

 

$

94,200

 

$

134,000

 

$

134,000

 

$

134,000

 

 

 
















Portfolio turnover

 

 

22

%

 

35

%

 

57

%

 

29

%

 

59

%

 

 
















Asset coverage per Preferred Share at $25,000 liquidation preference, end of year

 

$

74,420

 

$

66,951

 

$

57,008

 

$

58,903

 

$

58,181

 

 

 

















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.

 




64

ANNUAL REPORT

APRIL 30, 2010




 

 



 

 

Financial Highlights

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
April 30,
2010

 

Period
June 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended May 31,

 

 

 

 


 

 

 

 

2008

 

2007

 

2006

 

2005

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

13.05

 

$

14.45

 

$

15.10

 

$

15.07

 

$

15.51

 

$

14.52

 

 

 



















Net investment income1

 

 

1.02

 

 

0.89

 

 

1.04

 

 

1.03

 

 

1.04

 

 

1.02

 

Net realized and unrealized gain (loss)

 

 

1.57

 

 

(1.42

)

 

(0.63

)

 

0.18

 

 

(0.15

)

 

1.15

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.11

)

 

(0.23

)

 

(0.33

)

 

(0.28

)

 

(0.21

)

 

(0.11

)

Net realized gain

 

 

 

 

 

 

 

 

(0.04

)

 

(0.04

)

 

(0.02

)

 

 



















Net increase (decrease) from investment operations

 

 

2.48

 

 

(0.76

)

 

0.08

 

 

0.89

 

 

0.64

 

 

2.04

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.78

)

 

(0.64

)

 

(0.73

)

 

(0.74

)

 

(0.84

)

 

(0.86

)

Net realized gain

 

 

 

 

 

 

 

 

(0.12

)

 

(0.23

)

 

(0.19

)

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.78

)

 

(0.64

)

 

(0.73

)

 

(0.86

)

 

(1.07

)

 

(1.05

)

 

 



















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

(0.01

)

 

 

 

 



















Net asset value, end of period

 

$

14.75

 

$

13.05

 

$

14.45

 

$

15.10

 

$

15.07

 

$

15.51

 

 

 



















Market price, end of period

 

$

14.13

 

$

11.77

 

$

13.70

 

$

14.85

 

$

14.52

 

$

13.94

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

19.85

%

 

(4.56

)%3 

 

0.86

%

 

6.14

%

 

4.71

%

 

15.36

%

 

 



















Based on market price

 

 

27.29

%

 

(9.21

)%3

 

(2.76

)%

 

8.34

%

 

12.25

%

 

14.93

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.20

%

 

1.44

%6

 

1.30

%

 

1.31

%

 

1.24

%

 

1.07

%

 

 



















Total expenses after fees waived and paid indirectly4

 

 

1.10

%

 

1.25

%6

 

1.07

%

 

1.07

%

 

1.00

%

 

0.85

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,5

 

 

1.01

%

 

1.02

%6

 

0.90

%

 

0.87

%

 

0.87

%

 

0.84

%

 

 



















Net investment income4

 

 

7.22

%

 

7.46

%6

 

6.97

%

 

6.71

%

 

6.82

%

 

6.77

%

 

 



















Dividends to Preferred Shareholders

 

 

0.81

%

 

1.94

%6

 

2.23

%

 

1.80

%

 

1.36

%

 

0.74

%

 

 



















Net investment income to Common Shareholders

 

 

6.41

%

 

5.52

%6

 

4.74

%

 

4.91

%

 

5.46

%

 

6.03

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

561,140

 

$

496,247

 

$

549,415

 

$

574,225

 

$

573,034

 

$

589,802

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

287,175

 

$

287,175

 

$

320,000

 

$

320,000

 

$

320,000

 

$

285,000

 

 

 



















Portfolio turnover

 

 

29

%

 

13

%

 

14

%

 

12

%

 

49

%

 

54

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

73,857

 

$

68,207

 

$

67,941

7

$

69,875

 

$

69,781

 

$

73,743

 

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

6

Annualized.


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2010

65




 

 



 

 

Financial Highlights

BlackRock MuniVest Fund II, Inc. (MVT)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year
Ended
April 30,
2010

 

Period
November 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 


 

 

 

 

2008

 

2007

 

2006

 

2005

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

11.95

 

$

10.95

 

$

14.49

 

$

15.35

 

$

15.13

 

$

15.21

 

 

 



















Net investment income1

 

 

1.18

 

 

0.53

 

 

1.12

 

 

1.16

 

 

1.16

 

 

1.19

 

Net realized and unrealized gain (loss)

 

 

2.32

 

 

0.95

 

 

(3.49

)

 

(0.84

)

 

0.35

 

 

0.04

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.05

)

 

(0.05

)

 

(0.32

)

 

(0.32

)

 

(0.29

)

 

(0.18

)

 

 



















Net increase (decrease) from investment operations

 

 

3.45

 

 

1.43

 

 

(2.69

)

 

 

 

1.22

 

 

1.05

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.99

)

 

(0.43

)

 

(0.85

)

 

(0.86

)

 

(1.00

)

 

(1.10

)

 

 



















Capital charge with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.03

)

 

 



















Net asset value, end of period

 

$

14.41

 

$

11.95

 

$

10.95

 

$

14.49

 

$

15.35

 

$

15.13

 

 

 



















Market price, end of period

 

$

14.94

 

$

11.65

 

$

9.75

 

$

13.91

 

$

16.29

 

$

15.40

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

29.75

%

 

13.71

%3

 

(19.33

)%

 

(0.02

)%

 

8.36

%

 

6.88

%

 

 



















Based on market price

 

 

37.99

%

 

24.49

%3

 

(25.18

)%

 

(9.56

)%

 

12.98

%

 

9.21

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.25

%

 

1.51

%6

 

1.67

%

 

1.67

%

 

1.61

%

 

1.35

%

 

 



















Total expenses after fees waived and excluding interest expense and fees4,5

 

 

1.10

%

 

1.26

%6

 

1.16

%

 

1.12

%

 

1.11

%

 

1.07

%

 

 



















Net investment income4

 

 

8.72

%

 

9.77

%6

 

8.03

%

 

7.74

%

 

7.70

%

 

7.76

%

 

 



















Dividends to Preferred Shareholders

 

 

0.36

%

 

0.95

%6

 

2.31

%

 

2.11

%

 

1.90

%

 

1.14

%

 

 



















Net investment income to Common Shareholders

 

 

8.36

%

 

8.82

%6

 

5.72

%

 

5.63

%

 

5.80

%

 

6.62

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

295,465

 

$

243,583

 

$

223,210

 

$

293,836

 

$

309,975

 

$

303,701

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

140,000

 

$

150,800

 

$

150,800

 

$

175,000

 

$

175,000

 

$

175,000

 

 

 



















Portfolio turnover

 

 

30

%

 

9

%

 

49

%

 

43

%

 

60

%

 

64

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

77,767

 

$

65,388

 

$

62,019

 

$

67,004

 

$

69,307

 

$

68,389

 

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effects of dividends to Preferred Shareholders.

 

 

 

 

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

6

Annualized.


 

 

 

See Notes to Financial Statements.

 




66

ANNUAL REPORT

APRIL 30, 2010




 


 

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock Apex Municipal Fund, Inc. (“APX”), BlackRock MuniAssets Fund, Inc. (“MUA”), BlackRock MuniEnhanced Fund, Inc. (“MEN”), BlackRock MuniHoldings Fund, Inc. (“MHD”), BlackRock MuniHoldings Fund II, Inc. (“MUH”), BlackRock MuniHoldings Insured Fund, Inc. (“MUS”), BlackRock Muni Intermediate Duration Fund, Inc. (“MUI”) and BlackRock MuniVest Fund II, Inc. (“MVT”) (collectively, the “Funds”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as non-diversified, closed-end management investment companies. The Funds are organized as Maryland corporations. The Funds’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require the use of management accruals and estimates. Actual results may differ from these estimates. The Funds determine and make available for publication the net asset value of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Funds:

Valuation: The Funds’ policy is to fair value their financial instruments at market value, using independent dealers or pricing services selected under the supervision of the Board of Directors (the “Board”). Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or is not available, the investment will be valued by a method approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that each Fund might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Forward Commitments and When-Issued Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized gain of the commitment, which is shown on the Schedules of Investments, if any.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds leverage their assets through the use of tender option bond trusts (“TOBs”). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Fund has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Fund include the right of the Fund (1) to cause the holders of a proportional share of the short-term floating rate certificates to tender their certificates at par, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to the Fund. The TOB may also be terminated without the consent of the Fund upon the occurrence of certain events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond or the inability to remarket the short-term floating rate certificates to third party investors.

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to the Fund, which typically invests the cash in additional municipal bonds. Each Fund’s transfer of the municipal bonds to a TOB is accounted for as a secured borrowing, therefore the municipal bonds deposited into a TOB are presented in the Funds’ Schedules of Investments and the proceeds from the issuance of the short-term floating rate certificates are shown as trust certificates in the Statements of Assets and Liabilities.

Interest income from the underlying municipal bonds is recorded by the Funds on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expense and fees of the Funds. The short-term floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At April 30, 2010, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for trust

 

 

 


ANNUAL REPORT

APRIL 30, 2010

67




 


 

Notes to Financial Statements (continued)

certificates and the range of interest rates on the liability for trust certificates were as follows:

 

 

 

 

 

 

 

 

 










 

 

Underlying
Municipal
Bonds
Transferred to
TOBs

 

Liability
for Trust
Certificates

 

Range of
Interest
Rates








APX

 

$

14,942,769

 

$

7,285,446

 

0.27% – 0.44%

MUA

 

$

22,052,626

 

$

10,755,646

 

0.27% – 0.44%

MEN

 

$

114,760,238

 

$

59,394,596

 

0.23% – 0.70%

MHD

 

$

79,945,086

 

$

41,288,466

 

0.21% – 0.40%

MUH

 

$

61,485,225

 

$

32,019,794

 

0.21% – 0.40%

MUS

 

$

60,591,404

 

$

31,955,414

 

0.24% – 0.49%

MUI

 

$

105,099,343

 

$

57,348,814

 

0.22% – 0.55%

MVT

 

$

114,936,172

 

$

58,595,515

 

0.21% – 0.43%










For the year ended April 30, 2010, the Funds’ average trust certificates outstanding and the daily weighted average interest rates, including fees, were as follows:

 

 

 

 

 

 

 








 

 

Average Trust
Certificates
Outstanding

 

Daily Weighted
Average
Interest Rates






APX

 

$

7,285,446

 

0.98

%

MUA

 

$

10,755,646

 

0.98

%

MEN

 

$

58,638,432

 

0.82

%

MHD

 

$

38,497,328

 

0.76

%

MUH

 

$

30,039,695

 

0.75

%

MUS

 

$

32,075,306

 

0.79

%

MUI

 

$

55,981,395

 

0.84

%

MVT

 

$

58,606,188

 

0.70

%








Should short-term interest rates rise, the Funds’ investments in TOBs may adversely affect the Funds’ investment income and distributions to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect the Funds’ net asset values per share.

Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Funds either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts), each Fund will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income, including amortization of premium and accretion of discount on debt securities, is recognized on the accrual basis.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 7.

Income Taxes: It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

Each Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ US federal tax returns remains open for each of the four periods ended as follows:

 

 

 

 

 

 

 

 

 










 

 

Year Ended

 

Period

 

Year Ended

 

Year Ended










APX

 

April 30, 2010

 

July 1, 2008 to
April 30, 2009

 

June 30, 2008

 

June 30, 2007










MUA

 

April 30, 2010

 

June 1, 2008 to
April 30, 2009

 

May 31, 2008

 

May 31, 2007










MEN

 

April 30, 2010

 

February 1, 2009
to April 30, 2009

 

January 31,
2009

 

January 31,
2008










MHD

 

April 30, 2010

 

April 30, 2009

 

April 30, 2008

 

April 30, 2007










MUH

 

April 30, 2010

 

August 1, 2008 to
April 30, 2009

 

July 31, 2008

 

July 31, 2007










MUS

 

April 30, 2010

 

April 30, 2009

 

April 30, 2008

 

April 30, 2007










MUI

 

April 30, 2010

 

June 1, 2008 to
April 30, 2009

 

May 31, 2008

 

May 31, 2007










MVT

 

April 30, 2010

 

November 1, 2008
to April 30, 2009

 

October 31,
2008

 

October 31,
2007










The statutes of limitations on each of the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. There are no uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standard: In January 2010, the Financial Accounting Standards Board issued amended guidance to improve disclosure about fair value measurements which will require additional disclosures about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances and settlements in the reconciliation for fair value measurements using significant unobservable inputs (Level 3). It also clarifies existing disclosure requirements relating to the levels of disaggregation for fair value measurement and inputs and valuation techniques used to measure fair value. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2009, and interim periods within those fiscal years, except for disclosures about purchases, sales, issuances and settlements in the rollforward of activity in Level 3 fair

 

 

 




68

ANNUAL REPORT

APRIL 30, 2010




 


 

Notes to Financial Statements (continued)

value measurements, which are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. The impact of this guidance on the Funds’ financial statements and disclosures is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Fund’s Board, non-interested Directors (“Independent Directors”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Directors. This has approximately the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund. Each Fund may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Directors in order to match its deferred compensation obligations. Investments to cover each Fund’s deferred compensation liability, if any, are included in other assets in the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. The Funds have an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which if applicable are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Funds may engage in various portfolio investment strategies both to increase the returns of the Funds and to economically hedge, or protect, their exposure to certain risks such as credit risk, equity risk, interest rate risk and foreign currency exchange rate risk. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying instrument or if the counterparty does not perform under the contract. To the extent amounts due to the Funds from their counterparties are not fully collateralized contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. In addition, each Fund manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Counterparty risk related to exchange-traded financial futures contracts is minimal because of the protection against defaults provided by the exchanges on which they trade.

Financial Futures Contracts: The Funds may purchase or sell financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Funds as unrealized gains or losses. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures transactions involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

 


Derivative Instruments Categorized by Risk Exposure:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Effect of Derivative Instruments on the Statements of Operations
Year Ended April 30, 2010*


 

 

Net Realized Gain (Loss) From

 

 


 

 

APX

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MUI

 

MVT


















Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

$

(116,233

)

$

(185,318

)

$

106,827

 

$

(37,628

)

$

6,150

 

$

10,952

 

$

33,850

 

$

224,015


























For the year ended April 30, 2010, the average quarterly balance of outstanding derivative financial instruments was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


























 

 

APX

 

MUA

 

MEN

 

MHD

 

MUH

 

MUS

 

MUI

 

MVT


















Financial futures contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of contracts purchased

 

 

57

 

 

76

 

 

5

 

 

66

 

 

65

 

 

3

 

 

9

 

 

41

Average number of contracts sold

 

 

 

 

 

 

28

 

 

18

 

 

14

 

 

 

 

 

 

25

Average notional value of contracts purchased

 

$

6,655,465

 

$

8,897,385

 

$

517,510

 

$

7,774,177

 

$

7,567,635

 

$

316,256

 

$

977,519

 

$

4,708,160

Average notional value of contracts sold

 

 

 

 

 

$

3,295,217

 

$

2,172,472

 

$

1,636,472

 

 

 

 

 

$

2,975,992



























 

 

 

 

*

As of April 30, 2010, there were no financial futures contracts outstanding.


 

 

 


ANNUAL REPORT

APRIL 30, 2010

69




 


 

Notes to Financial Statements (continued)

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate of the Funds for 1940 Act purposes, but BAC and Barclays are not.

Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee at the following annual rates of each Fund’s average daily net assets (including any assets attributable to the proceeds from the issuance of Preferred Shares) minus the sum of accrued liabilities as follows:

 

 

 

 





APX

 

0.65

%

MUA

 

0.55

%

MEN

 

0.50

%

MHD

 

0.55

%

MUH

 

0.55

%

MUS

 

0.55

%

MUI

 

0.55

%

MVT

 

0.50

%





The Manager has contractually agreed to waive a portion of the investment advisory fees or other expenses on MUI as a percentage of its average daily net assets as follows: 0.10% through July 31, 2009, 0.05% through July 31, 2010 and 0.00% thereafter. For the year ended April 30, 2010, the waiver was $548,132, which is included in fees waived by advisor in the Statements of Operations for MUI.

The Manager has voluntarily agreed to waive its advisory fee on the proceeds of the Preferred Shares and TOBs that exceed 35% of MUS’ average daily net assets. For the year ended April 30, 2010 the waiver was $265,045, which is included in fees waived by advisor in the Statements of Operations.

The Manager has voluntarily agreed to waive its advisory fees by the amount of investment advisory fees the Funds pay to the Manager indirectly through their investment in affiliated money market funds, however the Manager does not waive its advisory fees by the amount of investment advisory fees paid through their investments in other affiliated investment companies, if any. This amount is included in fees waived by advisor in the Statements of Operations. For the year ended April 30, 2010, the amounts waived were as follows:

 

 

 

 





APX

 

$

1,115

MUA

 

$

1,650

MEN

 

$

9,932

MHD

 

$

6,077

MUH

 

$

4,160

MUS

 

$

13,070

MUI

 

$

10,802

MVT

 

$

3,780





The Manager has entered into a separate sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Fund to the Manager.

For the year ended April 30, 2010, the Funds reimbursed the Manager for certain accounting services, which are included in accounting services in the Statements of Operations. The reimbursements were as follows:

 

 

 

 





APX

 

$

3,513

MUA

 

$

5,240

MEN

 

$

10,500

MHD

 

$

6,742

MUH

 

$

4,929

MUS

 

$

5,678

MUI

 

$

17,276

MVT

 

$

9,712





Certain officers and/or directors of the Funds are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager for compensation paid to the Funds’ Chief Compliance Officer.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the year ended April 30, 2010, were as follows:

 

 

 

 

 

 

 

 









 

 

Purchases

 

Sales

 







APX

 

$

81,692,636

 

$

81,411,034

 

MUA

 

$

116,375,763

 

$

113,445,135

 

MEN

 

$

121,526,558

 

$

115,394,584

 

MHD

 

$

134,079,969

 

$

131,559,651

 

MUH

 

$

97,450,043

 

$

95,372,817

 

MUS

 

$

67,513,197

 

$

59,398,608

 

MUI

 

$

269,874,942

 

$

252,543,731

 

MVT

 

$

157,636,220

 

$

139,603,083

 










 

 

 




70

ANNUAL REPORT

APRIL 30, 2010




 


 

Notes to Financial Statements (continued)

5. Income Tax Information:

Reclassifications: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of April 30, 2010 attributable to amortization methods on fixed income securities, the expiration of capital loss carryforwards and securities in default were reclassified to the following accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











 

 

APX

 

MUA

 

MEN

 

MHD

 











Paid-in capital

 

$

(2,075,987

)

$

(1,831,271

)

$

(1,955,204

)

 

 

Undistributed net investment income

 

$

(22,349

)

$

(38,297

)

$

25,520

 

$

(25,862

)

Accumulated net realized gain (loss)

 

$

2,098,336

 

$

1,869,568

 

$

1,929,684

 

$

25,862

 















 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

MUH

 

MUS

 

MUI

 

MVT

 











Paid-in capital

 

$

(623,516

)

 

 

 

 

 

 

Undistributed net investment income

 

$

(33,571

)

$

7,484

 

$

(1,306

)

$

(967

)

Accumulated net realized gain (loss)

 

$

657,087

 

$

(7,484

)

$

1,306

 

$

967

 















 

 

 

 

 

 

 

 

 

 

 

 

 

 

The tax character of distributions paid during the periods shown were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

APX

 

MUA

 

MEN

 

MHD

 











Tax-exempt income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

$

11,040,029

 

$

16,841,125

 

$

19,592,674

 

$

14,314,693

 

Prior Period

 

 

9,259,509

 

 

15,527,663

 

 

4,162,234

 

 

14,319,988

 

Two Periods Prior

 

 

11,460,645

 

 

17,002,831

 

 

20,746,384

 

 

16,178,174

 

Ordinary income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

 

270,055

 

 

323,717

 

 

 

 

4,360

 

Prior Period

 

 

 

 

 

 

 

 

27,182

 

Two Periods Prior

 

 

 

 

65,858

 

 

 

 

100,708

 

Long-term capital gains:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

 

 

 

 

 

 

 

344,570

 

Prior Period

 

 

 

 

 

 

 

 

296,764

 

Two Periods Prior

 

 

 

 

 

 

 

 

1,534,274

 















Total distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

$

11,310,084

 

$

17,164,842

 

$

19,592,674

 

$

14,663,623

 

 

 













Prior Period

 

$

9,259,509

 

$

15,527,663

 

$

4,162,234

 

$

14,643,934

 

 

 













Two Periods Prior

 

$

11,460,645

 

$

17,068,689

 

$

20,746,384

 

$

17,813,156

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

MUH

 

MUS

 

MUI

 

MVT

 











Tax-exempt income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

$

10,348,031

 

$

10,891,517

 

$

33,955,513

 

$

21,323,197

 

Prior Period

 

 

7,352,534

 

 

10,007,431

 

 

33,025,061

 

 

9,682,717

 

Two Periods Prior

 

 

11,399,342

 

 

12,555,586

 

 

40,440,076

 

 

23,845,376

 

Ordinary income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

 

 

 

 

 

 

 

 

Prior Period

 

 

298,709

 

 

 

 

172,919

 

 

152,170

 

Two Periods Prior

 

 

42,062

 

 

 

 

 

 

77,411

 















Total distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

$

10,348,031

 

$

10,891,517

 

$

33,955,513

 

$

21,323,197

 

 

 













Prior Period

 

$

7,651,243

 

$

10,007,431

 

$

33,197,980

 

$

9,834,887

 

 

 













Two Periods Prior

 

$

11,441,404

 

$

12,555,586

 

$

40,440,076

 

$

23,922,787

 

 

 














 

 

 


ANNUAL REPORT

APRIL 30, 2010

71




 


 

Notes to Financial Statements (continued)

As of April 30, 2010, the tax components of accumulated net earnings (losses) were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

APX

 

MUA

 

MEN

 

MHD

 











Undistributed tax-exempt income

 

$

551,049

 

 

 

$

5,554,850

 

$

3,339,850

 

Undistributed ordinary income

 

 

114,372

 

$

217,062

 

 

3,858

 

 

295,887

 

Undistributed long-term net capital gains

 

 

 

 

 

 

 

 

480,423

 

Capital loss carryforwards

 

 

(9,374,607

)

 

(23,870,090

)

 

(7,638,699

)

 

 

Net unrealized gains/losses*

 

 

(2,131,293

)

 

(5,308,709

)

 

7,606,832

 

 

7,783,181

 

 

 













Total

 

$

(10,840,479

)

$

(28,961,737

)

$

5,526,841

 

$

11,899,341

 















 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

MUH

 

MUS

 

MUI

 

MVT

 















Undistributed tax-exempt income

 

$

2,851,161

 

$

3,470,637

 

$

8,395,143

 

$

4,645,246

 

Undistributed ordinary income

 

 

945

 

 

1,290

 

 

9,150

 

 

71

 

Undistributed long-term net capital gains

 

 

 

 

 

 

 

 

 

Capital loss carryforwards

 

 

(189,408

)

 

(12,611,861

)

 

(4,998,123

)

 

(4,929,816

)

Net unrealized gains/losses*

 

 

7,494,798

 

 

7,459,625

 

 

17,232,178

 

 

15,510,738

 

 

 













Total

 

$

10,157,496

 

$

(1,680,309

)

$

20,638,348

 

$

15,226,239

 
















 

 

*

The differences between book-basis and tax-basis net unrealized gains/losses were attributable primarily to the tax deferral of losses on wash sales and straddles, amortization methods for premiums and discounts on fixed income securities, the accrual of income on securities in default, the deferral of post-October capital losses for tax purposes, the timing and recognition of partnership income, the treatment of residual interests in tender option bond trusts, and the deferral of compensation to directors.

As of April 30, 2010, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















Expires April 30,

 

APX

 

MUA

 

MEN

 

MUH

 

MUS

 

MUI

 

MVT

 

















2011

 

$

2,163,492

 

$

7,452,325

 

 

 

$

189,408

 

 

 

 

 

 

 

2012

 

 

1,659,281

 

 

5,486,273

 

$

364,714

 

 

 

 

 

 

 

 

 

2013

 

 

35,292

 

 

3,762,613

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

3,072,949

 

 

5,065,527

 

 

 

 

 

 

 

$

334,473

 

 

 

2016

 

 

 

 

527,784

 

 

2,508,309

 

 

 

$

623,720

 

 

611,323

 

$

4,929,816

 

2017

 

 

373,543

 

 

1,575,568

 

 

3,540,378

 

 

 

 

5,373,343

 

 

321,623

 

 

 

2018

 

 

2,070,050

 

 

 

 

1,225,298

 

 

 

 

6,614,798

 

 

3,730,704

 

 

 

 

 






















Total

 

$

9,374,607

 

$

23,870,090

 

$

7,638,699

 

$

189,408

 

$

12,611,861

 

$

4,998,123

 

$

4,929,816

 

 

 






















6. Market and Credit Risk:

MEN and MUH invest a substantial amount of their assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentration in specific states.

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and interest rate and price fluctuations. Similar to credit risk, the Funds may be exposed to counterparty risk, or the risk that an entity with which the Funds have unsettled or open transactions may default. The Funds manage counterparty risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to credit and counterparty risks, consist principally of investments and cash due from counterparties. The extent of the Funds’ exposure to credit and counterparty risks with respect to these financial assets is generally approximated by their value recorded in the Funds’ Statements of Assets and Liabilities, less any collateral held by the Funds.

 

 

 




72

ANNUAL REPORT

APRIL 30, 2010




 


 

Notes to Financial Statements (continued)

7. Capital Share Transactions:

Each Fund, except APX, is authorized to issue 200 million shares (150 million for APX), all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10. The par value for each Fund’s Preferred Shares is $0.10 except MEN, Series A, B and C, which is $0.025 and MVT Series A, B and C, which is $0.05. Each Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders.

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend and distribution reinvestment:

 

 

 

 

 

 

 

 

 

 

 









 

 

Year Ended
April 30, 2010

 

Year Ended
April 30, 2009

 

Prior Year Ended*

 









APX

 

49,557

 

 

53,658

 

 

103,837

 

 

MUA

 

163,187

 

 

95,859

 

 

146,172

 

 

MHD

 

3,195

 

 

 

 

 

 

MUS

 

7,093

 

 

 

 

 

 

MVT

 

121,196

 

 

 

 

104,666

 

 













 

 

*

The prior year ended for APX is June 30, 2008, for MUA is May 31, 2008 and for MVT is October 31, 2008.

Shares issued and outstanding remained constant for MEN, MUH and MUI for the year ended April 30, 2010, the period ended April 30, 2009, the year ended January 31, 2009 for MEN, the year ended July 31, 2008 for MUH and the year ended May 31, 2008 for MUI.

Preferred Shares

The Preferred Shares are redeemable at the option of each Fund, in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Fund, as set forth in each Fund’s Articles Supplementary (the “Governing Instrument”) are not satisfied.

From time to time in the future, each Fund may effect repurchases of its Preferred Shares at prices below their liquidation preference as agreed upon by the Fund and seller. Each Fund also may redeem its Preferred Shares from time to time as provided in the applicable Governing Instrument. Each Fund intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors for each Fund. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

MEN, MHD, MUH, MUS, MUI and MVT had the following series of Preferred Shares outstanding, effective yields and reset frequency as of April 30, 2010:

 

 

 

 

 

 

 

 

 

 

 











 

 

Series

 

Preferred
Shares

 

Effective
Yield

 

Reset
Frequency
Days

 











MEN

 

A1

 

1,525

 

0.50%

 

28

 

 

 

 

B1

 

1,525

 

0.49%

 

28

 

 

 

 

C1

 

1,525

 

0.49%

 

7

 

 

 

 

D2

 

1,128

 

1.53%

 

7

 

 












MHD

 

A1

 

1,473

 

0.47%

 

7

 

 

 

 

B1

 

1,473

 

0.47%

 

7

 

 

 

 

C2

 

402

 

1.54%

 

7

 

 












MUH

 

A1

 

1,101

 

0.47%

 

7

 

 

 

 

B1

 

1,101

 

0.49%

 

7

 

 












MUS

 

A1

 

1,740

 

0.47%

 

7

 

 

 

 

B1

 

1,740

 

0.49%

 

7

 

 












MUI

 

M72

 

1,795

 

1.54%

 

7

 

 

 

 

T72

 

2,423

 

1.53%

 

7

 

 

 

 

W72

 

1,795

 

1.53%

 

7

 

 

 

 

TH72

 

2,423

 

1.53%

 

7

 

 

 

 

F72

 

1,795

 

1.53%

 

7

 

 

 

 

TH282

 

1,256

 

1.43%

 

28

 

 












MVT

 

A1

 

1,440

 

0.38%

 

28

 

 

 

 

B1

 

1,440

 

0.47%

 

28

 

 

 

 

C1

 

1,440

 

0.47%

 

7

 

 

 

 

D2

 

1,280

 

1.54%

 

7

 

 













 

 

1

The maximum applicable rate on this series of Preferred Shares is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

 

 

2

The maximum applicable rate on this series of Preferred Shares is the higher of 110% plus or times (i) the Telerate/BAA LIBOR or (ii) 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.


 

 

 


ANNUAL REPORT

APRIL 30, 2010

73




 


 

Notes to Financial Statements (continued)

Dividends on seven-day and 28-day Preferred Shares are cumulative at a rate which is reset every seven or 28 days, respectively, based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, each Fund is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on the Preferred Shares is as footnoted in the preceding table above. The low, high and average dividend rates on the Preferred Shares for each Fund for the year ended April 30, 2010 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











 

 

Series

 

Low

 

High

 

Average

 















MEN

 

 

A

 

0.34

%

 

0.73

%

 

0.52

%

 

 

 

 

B

 

0.31

%

 

0.79

%

 

0.45

%

 

 

 

 

C

 

0.24

%

 

0.79

%

 

0.45

%

 

 

 

 

D

 

1.32

%

 

1.79

%

 

1.50

%

 















MHD

 

 

A

 

0.26

%

 

0.79

%

 

0.45

%

 

 

 

 

B

 

0.24

%

 

0.76

%

 

0.44

%

 

 

 

 

C

 

1.32

%

 

1.82

%

 

1.51

%

 















MUH

 

 

A

 

0.26

%

 

0.79

%

 

0.45

%

 

 

 

 

B

 

0.24

%

 

0.76

%

 

0.44

%

 















MUS

 

 

A

 

0.24

%

 

0.76

%

 

0.44

%

 

 

 

 

B

 

0.24

%

 

0.79

%

 

0.45

%

 















MUI

 

 

M7

 

1.32

%

 

1.82

%

 

1.50

%

 

 

 

 

T7

 

1.34

%

 

1.82

%

 

1.51

%

 

 

 

 

W7

 

1.34

%

 

1.82

%

 

1.51

%

 

 

 

 

TH7

 

1.32

%

 

1.79

%

 

1.50

%

 

 

 

 

F7

 

1.32

%

 

1.79

%

 

1.50

%

 

 

 

 

TH28

 

1.34

%

 

1.75

%

 

1.51

%

 















MVT

 

 

A

 

0.26

%

 

0.72

%

 

0.45

%

 

 

 

 

B

 

0.32

%

 

0.75

%

 

0.46

%

 

 

 

 

C

 

0.26

%

 

0.79

%

 

0.45

%

 

 

 

 

D

 

1.32

%

 

1.82

%

 

1.51

%

 















Since February 13, 2008, the Preferred Shares of the Funds failed to clear any of their auctions. As a result, the Preferred Shares dividend rates were reset to the maximum applicable rate, which ranged from 0.24% to 1.82% for the year ended April 30, 2010. A failed auction is not an event of default for the Funds but it has a negative impact on the liquidity of Preferred Shares. A failed auction occurs when there are more sellers of a fund’s auction rate preferred shares than buyers. A successful auction for the Funds’ Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, holders of the Preferred Shares may not have the ability to sell the Preferred Shares at their liquidation preference.

The Funds may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%.

The Funds pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions and 0.15% on the aggregate principal amount of all shares that fail to clear their auctions. Certain broker dealers have individually agreed to reduce commissions for failed auctions.

During the year ended April 30, 2010, MEN, MHD, MUH, MUS and MVT announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:

 

 

 

 

 

 

 

 

 

 

 

 

 











 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 














MEN

 

 

A

 

7/14/09

 

174

 

 

$

4,350,000

 

 

 

 

B

 

7/21/09

 

174

 

 

$

4,350,000

 

 

 

 

C

 

6/30/09

 

174

 

 

$

4,350,000

 

 

 

 

D

 

7/06/09

 

129

 

 

$

3,225,000

 














MHD

 

 

A

 

7/08/09

 

145

 

 

$

3,625,000

 

 

 

 

B

 

7/06/09

 

145

 

 

$

3,625,000

 

 

 

 

C

 

7/07/09

 

39

 

 

$

975,000

 














MUH

 

 

A

 

7/08/09

 

119

 

 

$

2,975,000

 

 

 

 

B

 

7/06/09

 

119

 

 

$

2,975,000

 














MUS

 

 

A

 

7/06/09

 

144

 

 

$

3,600,000

 

 

 

 

B

 

7/07/09

 

144

 

 

$

3,600,000

 














MVT

 

 

A

 

7/30/09

 

111

 

 

$

2,775,000

 

 

 

 

B

 

7/09/09

 

111

 

 

$

2,775,000

 

 

 

 

C

 

7/09/09

 

111

 

 

$

2,775,000

 

 

 

 

D

 

7/07/09

 

99

 

 

$

2,475,000

 














Preferred Shares issued and outstanding remained constant for the year ended April 30, 2010 for MUI.

During the year ended April 30, 2009, MEN, MHD, MUH, MUS, MUI and MVT announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:

 

 

 

 

 

 

 

 

 

 

 

 











 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 













MEN

 

 

A

 

6/17/08

 

301

 

$

7,525,000

 

 

 

 

B

 

6/24/08

 

301

 

$

7,525,000

 

 

 

 

C

 

6/17/08

 

301

 

$

7,525,000

 

 

 

 

D

 

6/27/08

 

223

 

$

5,575,000

 













MHD

 

 

A

 

6/25/08

 

582

 

$

14,550,000

 

 

 

 

B

 

6/27/08

 

582

 

$

14,550,000

 

 

 

 

C

 

6/24/08

 

159

 

$

3,975,000

 













MUH

 

 

A

 

6/25/08

 

520

 

$

13,000,000

 

 

 

 

B

 

6/23/08

 

520

 

$

13,000,000

 













MUS

 

 

A

 

6/27/08

 

796

 

$

19,900,000

 

 

 

 

B

 

6/24/08

 

796

 

$

19,900,000

 













MUI

 

 

M7

 

6/24/08

 

205

 

$

5,125,000

 

 

 

 

T7

 

6/25/08

 

277

 

$

6,925,000

 

 

 

 

W7

 

6/26/08

 

205

 

$

5,125,000

 

 

 

 

TH7

 

6/27/08

 

277

 

$

6,925,000

 

 

 

 

F7

 

6/23/08

 

205

 

$

5,125,000

 

 

 

 

TH28

 

7/07/08

 

144

 

$

3,600,000

 













MVT

 

 

A

 

7/03/08

 

249

 

$

6,225,000

 

 

 

 

B

 

7/10/08

 

249

 

$

6,225,000

 

 

 

 

C

 

6/26/08

 

249

 

$

6,225,000

 

 

 

 

D

 

6/24/08

 

221

 

$

5,525,000

 













The Funds financed the Preferred Share redemptions with cash received from TOB transactions.

 

 

 




74

ANNUAL REPORT

APRIL 30, 2010




 


 

Notes to Financial Statements (concluded)

Preferred Shares issued and outstanding remained constant for the year ended January 31, 2009 for MEN, the year ended July 31, 2008 for MUH, the year ended May 31, 2008 for MUI and the year ended October 31, 2008 for MVT.

8. Restatement Information:

Subsequent to the initial issuance of the May 31, 2006 financial statements for MUI and July 31, 2006 for MUH, the Funds determined that the criteria for sale accounting under US GAAP had not been met for certain transfers of municipal bonds related to investments in TOB Residuals, and that these transfers should have been accounted for as secured borrowings rather than as sales. As a result, certain financial highlights for the year ended May 31, 2005 for MUI and July 31, 2005 for MUH have been restated to give effect to recording the transfers of the municipal bonds as secured borrowings, including recording interest on the bonds as interest income and interest on the secured borrowings as interest expense.

 

 

 

 

 

 

 

 







MUH Financial Highlights
For the Year Ended July 31, 2005

 

Previously
Reported

 

Restated

 









Total expenses, net of reimbursement*

 

1.19

%

 

1.27

%

 

Total expenses*

 

1.19

%

 

1.27

%

 

Portfolio turnover

 

45.11

%

 

38

%

 









 

 

 

 

 

 

 

 









MUI Financial Highlights
For the Year Ended May 31, 2005

 

Previously
Reported

 

Restated

 









Total expenses, net of waiver*

 

0.84

%

 

0.85

%

 

Portfolio turnover

 

54.55

%

 

54

%

 










 

 

 

 

*

Do not reflect the effect of dividends to Preferred Shareholders.

9. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

Each Fund paid a net investment income dividend on June 1, 2010 to Common Shareholders of record on May 14, 2010 as follows:

 

 

 

 





 

 

Common Dividend
Per Share

 





APX

 

$0.0440

 

MUA

 

$0.0625

 

MEN

 

$0.0570

 

MHD

 

$0.0860

 

MUH

 

$0.0805

 

MUS

 

$0.0740

 

MUI

 

$0.0655

 

MVT

 

$0.0860

 





The dividends declared on Preferred Shares for the period May 1, 2010 to May 31, 2010 were as follows:

 

 

 

 

 

 

 

 

 

 







 

 

Series

 

Dividends
Declared

 









MEN

 

 

A

 

 

$

14,569

 

 

 

 

 

B

 

 

$

14,533

 

 

 

 

 

C

 

 

$

13,526

 

 

 

 

 

D

 

 

$

33,604

 

 











MHD

 

 

A

 

 

$

13,171

 

 

 

 

 

B

 

 

$

12,864

 

 

 

 

 

C

 

 

$

12,025

 

 











MUH

 

 

A

 

 

$

9,845

 

 

 

 

 

B

 

 

$

9,743

 

 











MUS

 

 

A

 

 

$

15,196

 

 

 

 

 

B

 

 

$

15,433

 

 











MUI

 

 

M7

 

 

$

53,693

 

 

 

 

 

T7

 

 

$

72,641

 

 

 

 

 

W7

 

 

$

53,751

 

 

 

 

 

TH7

 

 

$

72,183

 

 

 

 

 

TH28

 

 

$

36,324

 

 

 

 

 

F7

 

 

$

53,659

 

 











MVT

 

 

A

 

 

$

11,671

 

 

 

 

 

B

 

 

$

13,217

 

 

 

 

 

C

 

 

$

12,817

 

 

 

 

 

D

 

 

$

38,288

 

 











On June 1, 2010, MUI declared a dividend to Common Shareholders of record on June 15, 2010 of $0.0680 per share.

 

 

 


ANNUAL REPORT

APRIL 30, 2010

75




 


 

Report of Independent Registered Public Accounting Firm

To the Shareholders and Boards of Directors of:
BlackRock Apex Municipal Fund, Inc.
BlackRock MuniAssets Fund, Inc.
BlackRock MuniEnhanced Fund, Inc.
BlackRock MuniHoldings Fund, Inc.
BlackRock MuniHoldings Fund II, Inc.
BlackRock MuniHoldings Insured Fund, Inc.
BlackRock Muni Intermediate Duration Fund, Inc.
BlackRock MuniVest Fund II, Inc.
(collectively, the “Funds”)

We have audited the accompanying statement of assets and liabilities of BlackRock Apex Municipal Fund, Inc., including the schedule of investments, as of April 30, 2010, and the related statement of operations for the year then ended, the statements of changes in net assets for the year then ended, the period July 1, 2008 to April 30, 2009 and the year ended June 30, 2008, and the financial highlights for each of the periods presented. We have also audited the accompanying statement of assets and liabilities of BlackRock MuniAssets Fund, Inc., including the schedule of investments, as of April 30, 2010, and the related statement of operations for the year then ended, the statements of changes in net assets for the year then ended, the period June 1, 2008 to April 30, 2009 and the year ended May 31, 2008, and the financial highlights for each of the periods presented. We have also audited the accompanying statement of assets and liabilities of BlackRock MuniEnhanced Fund, Inc., including the schedule of investments, as of April 30, 2010, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for the year then ended, the period February 1, 2009 to April 30, 2009 and the year ended January 31, 2009, and the financial highlights for each of the periods presented. We have also audited the accompanying statements of assets and liabilities of BlackRock MuniHoldings Fund, Inc. and BlackRock MuniHoldings Insured Fund, Inc., including the schedules of investments, as of April 30, 2010, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. We have also audited the accompanying statement of assets and liabilities of BlackRock MuniHoldings Fund II, Inc., including the schedule of investments, as of April 30, 2010, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for the year then ended, the period August 1, 2008 to April 30, 2009 and the year ended July 31, 2008, and the financial highlights for the year then ended, the period August 1, 2008 to April 30, 2009 and for each of the three years in the period ended July 31, 2008. We have also audited the accompanying statement of assets and liabilities of BlackRock Muni Intermediate Duration Fund, Inc., including the schedule of investments, as of April 30, 2010, and the related statement of operations for the year then ended, the statements of changes in net assets for the year then ended, the period June 1, 2008 to April 30, 2009 and the year ended May 31, 2008, and the financial highlights for the year then ended, the period June 1, 2008 to April 30, 2009 and for each of the three years in the period ended May 31, 2008. We have also audited the accompanying statement of assets and liabilities of BlackRock MuniVest Fund II, Inc., including the schedule of investments, as of April 30, 2010, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for the year then ended, the period November 1, 2008 to April 30, 2009 and the year ended October 31, 2008, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for BlackRock MuniHoldings Fund II, Inc. for the year ended July 31, 2005 (before the restatement described in Note 8) were audited by other auditors whose report, dated September 12, 2005, expressed a qualified opinion on those financial highlights because of the errors described in Note 8. The financial highlights for BlackRock Muni Intermediate Duration Fund, Inc. for the year ended May 31, 2005 (before the restatement described in Note 8) were audited by other auditors whose report, dated July 13, 2005, expressed a qualified opinion on the financial highlights because of the errors described in Note 8.

We conducted our audits in accordance with the standards of the Public Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2010, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Apex Municipal Fund, Inc. as of April 30, 2010, the results of its operations for the year then ended, the changes in its net assets for the year then ended, the period July 1, 2008 to April 30, 2009 and the year ended June 30, 2008, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock MuniAssets Fund, Inc. as of April 30, 2010, the results of its operations for the year then ended, the changes in its net assets for the year then ended, the period June 1, 2008 to April 30, 2009 and the year ended May 31, 2008, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock MuniEnhanced Fund, Inc. as of April 30, 2010, the results of its operations and its cash flows for the year then ended, the changes in its net assets for

 

 

 




76

ANNUAL REPORT

APRIL 30, 2010




 


 

Report of Independent Registered Public Accounting Firm (concluded)

the year then ended, the period February 1, 2009 to April 30, 2009 and the year ended January 31, 2009, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of BlackRock MuniHoldings Fund, Inc. and BlackRock MuniHoldings Insured Fund, Inc. as of April 30, 2010, the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock MuniHoldings Fund II, Inc. as of April 30, 2010, the results of its operations and its cash flows for the year then ended, the changes in its net assets for the year then ended, the period August 1, 2008 to April 30, 2009 and the year ended July 31, 2008, and the financial highlights for the year then ended, the period August 1, 2008 to April 30, 2009 and for each of the three years in the period ended July 31, 2008, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Muni Intermediate Duration Fund, Inc. as of April 30, 2010, the results of its operations for the year then ended, the changes in its net assets for the year then ended, the period June 1, 2008 to April 30, 2009 and for the year ended May 31, 2008, and the financial highlights for the year then ended, the period June 1, 2008 to April 30, 2009 and for each of the three years in the period ended May 31, 2008, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock MuniVest Fund II, Inc. as of April 30, 2010, the results of its operations and its cash flows for the year then ended, the changes in its net assets for the year then ended, the period November 1, 2008 to April 30, 2009 and the year ended October 31, 2008, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

We also have audited the adjustments, applied by management, to restate certain financial highlights for the year ended July 31, 2005 for BlackRock MuniHoldings Fund II, Inc. and for the year ended May 31, 2005 for BlackRock Muni Intermediate Duration Fund, Inc. to correct the errors described in Note 8. These adjustments are the responsibility of the Funds’ management. The audit procedures that we performed with respect to the adjustments included such tests as we considered necessary in the circumstances and were designed to obtain reasonable assurance about whether the adjustments are appropriate and have been properly applied, in all material respects, to the restated financial highlights for the year ended July 31, 2005 for BlackRock MuniHoldings Fund II, Inc. and for the year ended May 31, 2005 for BlackRock Muni Intermediate Duration Fund, Inc. We did not perform any audit procedures designed to assess whether any additional adjustments to such financial highlights might be necessary in order for such financial highlights to be presented in conformity with generally accepted accounting principles. In our opinion, the adjustments to the financial highlights for the year ended July 31, 2005 for BlackRock MuniHoldings Fund II, Inc. and for the year ended May 31, 2005 for BlackRock Muni Intermediate Duration Fund, Inc. described in Note 8 are appropriate and have been properly applied, in all material respects. However, we were not engaged to audit, review, or apply any procedures to such financial highlights other than with respect to the adjustments described in Note 8 and, accordingly, we do not express an opinion or any other form of assurance on such financial highlights.

Deloitte & Touche LLP
Princeton, New Jersey

June 28, 2010

 

 

 


ANNUAL REPORT

APRIL 30, 2010

77




 

 


 

Important Tax Information


All of the net investment income distributions paid by APX, MUA, MEN, MHD, MUH, MUS, MUI and MVT during the taxable year ended April 30, 2010 qualify as tax-exempt interest dividends for Federal income tax purposes.

The following table summarizes the taxable per share distributions paid by the following Funds during the taxable year ended April 30, 2010.

 

 

 

 

 

 

 

 

 

 











 

 

Payable
Date

 

Ordinary
Income

 

Long-Term
Capital
Gains

 









Common Shareholders:

 

 

 

 

 

 

 

 

 

APX

 

12/31/09

 

$

0.013525

 

 

 

MUA

 

12/31/09

 

$

0.015370

 

 

 

MHD

 

12/31/09

 

$

0.000294

 

$

0.023255

 









Preferred Shareholders:

 

 

 

 

 

 

 

 

 

MHD Series A:

 

12/2/09

 

$

0.05

 

$

3.32

 

 

 

12/9/09

 

$

0.02

 

$

2.04

 

MHD Series B:

 

11/27/09

 

$

0.05

 

$

3.32

 

 

 

12/4/09

 

$

0.02

 

$

2.23

 

MHD Series C:

 

12/1/09

 

$

0.14

 

$

11.03

 

 

 

12/8/09

 

$

0.02

 

$

1.29

 










 

 

 




78

ANNUAL REPORT

APRIL 30, 2010




 

 


 

Automatic Dividend Reinvestment Plans


Pursuant to each Fund’s Dividend Reinvestment Plan (the “Plan”), common shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by BNY Mellon Shareowner Services for APX, MUA, MHD, MUH, MUS and MVT and Computershare Trust Company, N.A. for MEN and MUI (individually, the “Plan Agent” or together, the “Plan Agents”) in the respective Fund’s shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

After the Funds declare a dividend or determine to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Fund (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market, on the Fund’s primary exchange or elsewhere (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market premium”), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Plan Agents are unable to invest the full dividend amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Plan Agents will invest any un-invested portion in newly issued shares.

Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Fund. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable on such dividends or distributions.

Each Fund reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Fund reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through Computershare Trust Company, N.A. are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. Participants that request a sale of shares through BNY Mellon Shareowner Services are subject to a $0.02 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the respective Plan Agent: BNY Mellon Shareowner Services, P.0. Box 358035, Pittsburgh, PA 15252-8035, Telephone: (866) 216-0242 for shareholders of APX, MUA, MHD, MUH, MUS and MVT or Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078, Telephone: (800) 699-1BFM or overnight correspondence should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021 for shareholders of MEN and MUI.

 

 

 




ANNUAL REPORT

APRIL 30, 2010

79




 

 


 

Officers and Directors


 

 

 

 

 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Funds

 

Length
of Time
Served as
a Director2

 

Principal Occupation(s) During Past Five Years

 

Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen

 

Public
Directorships












Non-Interested Directors1

 

 

 

 

 

 








Richard E. Cavanagh
55 East 52nd Street
New York, NY 10055
1946

 

Chairman of the Board and Director

 

Since 2007

 

Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life Insurance Company of America since 1998; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor since 2008 and Director since 1996, The Fremont Group since 2008 and Director thereof since 1996; Adjunct Lecturer, Harvard University since 2007; Formerly President and Chief Executive Officer of The Conference Board, Inc. (global business research organization) from 1995 to 2007.

 

99 RICs consisting of 97 Portfolios

 

Arch Chemical (chemical and allied products)












Karen P. Robards
55 East 52nd Street
New York, NY 10055
1950

 

Vice Chair of the Board, Chair of the Audit Committee and Director

 

Since 2007

 

Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Formerly Director of Enable Medical Corp. from 1996 to 2005; Formerly an investment banker at Morgan Stanley from 1976 to 1987.

 

99 RICs consisting of 97 Portfolios

 

AtriCure, Inc. (medical devices); Care Investment Trust, Inc. (health care real estate investment trust)












Frank J. Fabozzi
55 East 52nd Street
New York, NY 10055
1948

 

Director and Member of the Audit Committee

 

Since 2007

 

Consultant/Editor of The Journal of Portfolio Management since 2006; Professor in the Practice of Finance and Becton Fellow, Yale University, School of Management, since 2006; Formerly Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006.

 

99 RICs consisting of 97 Portfolios

 

None












Kathleen F. Feldstein
55 East 52nd Street
New York, NY 10055
1941

 

Director

 

Since 2007

 

President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003; Director, Catholic Charities of Boston since 2009.

 

99 RICs consisting of 97 Portfolios

 

The McClatchy Company (publishing); Bell South (telecommunications); Knight Ridder (publishing)












James T. Flynn
55 East 52nd Street
New York, NY 10055
1939

 

Director and Member of the Audit Committee

 

Since 2007

 

Formerly Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.

 

99 RICs consisting of 97 Portfolios

 

None












Jerrold B. Harris
55 East 52nd Street
New York, NY 10055
1942

 

Director

 

Since 2007

 

Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000. Director of Delta Waterfowl Foundation since 2001; President and Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999.

 

99 RICs consisting of 97 Portfolios

 

BlackRock Kelso Capital Corp. (business develop- ment company)













 

 

 




80

ANNUAL REPORT

APRIL 30, 2010




 

 


 

Officers and Directors (continued)


 

 

 

 

 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Funds

 

Length
of Time
Served as
a Director2

 

Principal Occupation(s) During Past Five Years

 

Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen

 

Public
Directorships












Non-Interested Directors1 (concluded)

 

 

 

 

 

 












R. Glenn Hubbard
55 East 52nd Street
New York, NY 10055
1958

 

Director

 

Since 2007

 

Dean of Columbia Business School since 2004; Columbia faculty member since 1988; Formerly Co-Director of Columbia Business School’s Entrepreneurship Program from 1997 to 2004; Formerly Chairman of the U.S. Council of Economic Advisers under the President of the United States from 2001 to 2003; Chairman, Economic Policy Committee of the OECD from 2001 to 2003.

 

99 RICs consisting of 97 Portfolios

 

ADP (data and information services); KKR Financial Corporation (finance); Metropolitan Life Insurance Company (insurance)












W. Carl Kester
55 East 52nd Street
New York, NY 10055
1951

 

Director and Member of the Audit Committee

 

Since 2007

 

George Fisher Baker Jr. Professor of Business Administration, Harvard Business School; Deputy Dean for Academic Affairs since 2006; Unit Head, Finance, Harvard Business School from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program of Harvard Business School from 1999 to 2005; Member of the faculty of Harvard Business School since 1981; Independent Consultant since 1978.

 

99 RICs consisting of 97 Portfolios

 

None

 

 

 

 



 

1

Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

 

2

Date shown is the earliest date a person has served for the Funds covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows directors as joining the Funds’ board in 2007, each director first became a member of the board of directors of other legacy MLIM or legacy BlackRock Funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998.


 

 

 

 

 

 

 

 

 

 

 












Interested Directors3

 

 

 

 

 

 

 

 










Richard S. Davis
55 East 52nd Street
New York, NY 10055
1945

 

Director

 

Since 2007

 

Managing Director, BlackRock, Inc. since 2005; Formerly Chief Executive Officer, State Street Research & Management Company from 2000 to 2005; Formerly Chairman of the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005.

 

169 RICs consisting of 298 Portfolios

 

None












Henry Gabbay
55 East 52nd Street
New York, NY 10055
1947

 

Director

 

Since 2007

 

Formerly Consultant, BlackRock, Inc. from 2007 to 2008; Formerly Managing Director, BlackRock, Inc. from 1989 to 2007; Formerly Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; Formerly President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Formerly Treasurer of certain closed-end Funds in the BlackRock fund complex from 1989 to 2006.

 

169 RICs consisting of 298 Portfolios.

 

None

 

 

 

 



 

3

Mr. Davis is an “interested person,” as defined in the Investment Company Act of 1940, of the Funds based on his position with BlackRock, Inc. and its affiliates. Mr. Gabbay is an “interested person” of the Funds based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership of BlackRock, Inc. and The PNC Financial Services Group, Inc. securities. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.


 

 

 




ANNUAL REPORT

APRIL 30, 2010

81




 

 


 

Officers and Directors (concluded)


 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Funds

 

Length
of Time
Served

 

Principal Occupation(s) During Past Five Years








Funds Officers1

 

 

 

 

 

 








Anne Ackerley
55 East 52nd Street
New York, NY 10055
1962

 

President and Chief Executive Officer

 

Since 20092

 

Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised Funds from 2007 to 2009; Chief Operating Officer of BlackRock’s Global Client Group (GCG) since 2009; Chief Operating Officer of BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006.








Brendan Kyne
55 East 52nd Street
New York, NY 10055
1977

 

Vice President

 

Since 2009

 

Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009, Co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008.








Neal Andrews
55 East 52nd Street
New York, NY 10055
1966

 

Chief Financial Officer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.








Jay Fife
55 East 52nd Street
New York, NY 10055
1970

 

Treasurer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P.-advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.








Brian P. Kindelan
55 East 52nd Street
New York, NY 10055
1959

 

Chief Compliance Officer

 

Since 2007

 

Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005.








Howard Surloff
55 East 52nd Street
New York, NY 10055
1965

 

Secretary

 

Since 2007

 

Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General Counsel (U.S.) of Goldman Sachs Asset Management, L.P. from 1993 to 2006.

 

 

 

 



 

1

Officers of the Funds serve at the pleasure of the Board of Directors.

 

2

Ms. Ackerley has been President and Chief Executive Officer since 2009 and was Vice President from 2007 to 2009.





 

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

 

Sub-Advisor

BlackRock Investment

Management, LLC

Plainsboro, NJ 08536

 

Custodians

State Street Bank and

Trust Company3

Boston, MA 02101

 

The Bank of New York Mellon4

New York, NY 10286

 

Transfer Agent
Common Shares:

Computershare Trust Company, N.A.3

Providence, RI 02940

 

BNY Mellon Shareowner Services4

Jersey City, NJ 07310

 

Auction Agent
Preferred Shares:

The Bank of New York Mellon

New York, NY 10289

 

Accounting Agent

State Street Bank and

Trust Company

Princeton, NJ 08540

 

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Princeton, NJ 08540

 

Legal Counsel

Skadden, Arps, Slate,

Meagher & Flom LLP

New York, NY 10036

 

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809


 

 

3

For MEN and MUI.

 

 

4

For APX, MUA, MHD, MUH, MUS and MVT.


 

 

 

   

Effective January 1, 2010, Kent Dixon, a Director of the Funds, retired.

Effective March 31, 2010, G. Nicholas Beckwith, III, a Director of the Funds, resigned.

The Funds’ Board extends its best wishes to both Mr. Dixon and Mr. Beckwith.

   

 

 

 


 

 

 




82

ANNUAL REPORT

APRIL 30, 2010



 


 

Additional Information

 


Fund Certification


The Funds are listed for trading on the New York Stock Exchange (“NYSE”) and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. Each Fund filed with the Securities and Exchange Commission (“SEC”) the certification of their chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

 


Dividend Policy


The Funds’ dividend policy is to distribute all or a portion of their net investment income to their shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Funds may at times pay out less than the entire amount of net investment income earned in any particular month and may at times, in any particular month, pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

 

 

 


ANNUAL REPORT

APRIL 30, 2010

83




 


 

Additional Information (continued)

 


General Information


The Funds do not make available copies of their Statements of Additional Information because the Funds’ shares are not continuously offered, which means that the Statement of Additional Information of each Fund has not been updated after completion of the respective Fund’s offerings and the information contained in each Fund’s Statement of Additional Information may have become outdated.

During the period, there were no material changes in the Funds’ investment objectives or policies or to the Funds’ charters or by-laws that were not approved by the shareholders or in the principal risk factors associated with investment in the Funds. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolio.

Quarterly performance, semi-annual and annual reports and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website into this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ web-sites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 441-7762.

Availability of Quarterly Portfolio Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

 

 

 




84

ANNUAL REPORT

APRIL 30, 2010




 


 

Additional Information (continued)

 


Section 19(a) Notices


The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Each Fund will send you a Form 1099-DIV each calendar year that will tell you how to report these distributions for federal income tax purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 







 

 

Total Fiscal Year-to-Date
Cumulative Distributions by Character

 

% of Fiscal Year-to-Date
Cumulative Distributions by Character

 

 

 


 



April 30, 2010

 

Net
Investment
Income

 

Net
Realized
Capital
Gains

 

Return
of
Capital

 

Total Per
Common
Share

 

Net
Investment
Income

 

Net
Realized
Capital
Gains

 

Return
of
Capital

 

Total Per
Common
Share

 



















APX

 

$

0.566525

 

 

 

 

 

$

0.566525

 

 

100

%

 

0

%

 

0

%

 

100

%

MUA*

 

$

0.791796

 

 

 

$

0.023574

 

$

0.815370

 

 

97

%

 

0

%

 

3

%

 

100

%

MHD

 

$

0.994794

 

$

0.023255

 

 

 

$

1.018049

 

 

98

%

 

2

%

 

0

%

 

100

%



 

 

*

The Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in a Fund is returned to the shareholder. A return of capital does not necessarily reflect a Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’


 

 

 


ANNUAL REPORT

APRIL 30, 2010

85




 


 

Additional Information (concluded)

 


BlackRock Privacy Principles


BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

 

 

 




86

ANNUAL REPORT

APRIL 30, 2010



This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Certain of the Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

 

 

(GO PAPERLESS LOGO)

(BLACKROCK LOGO)



 

#CEMUN18-4/10


Item 2 –

Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.

 

 

Item 3 –

Audit Committee Financial Expert – The registrant’s board of directors or trustees, as applicable (the “board of directors”) has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

 

Kent Dixon (retired effective December 31, 2009)

 

Frank J. Fabozzi

 

James T. Flynn

 

W. Carl Kester

 

Karen P. Robards

 

 

 

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

 

 

 

Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements.

 

 

 

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

 

 

 

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.

 


 

 

Item 4 –

Principal Accountant Fees and Services

 

 

(a) Audit Fees

(b) Audit-Related Fees1

(c) Tax Fees2

(d) All Other Fees3

Entity Name

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

 

 

 

 

 

 

 

 

 

BlackRock MuniHoldings Fund, Inc.

$34,300

$34,300

$3,500

$3,500

$6,100

$6,100

$0

$1,028

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The nature of the services include tax compliance, tax advice and tax planning.

3 The nature of the services include a review of compliance procedures and attestation thereto.

 

    

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

 

 

 

The registrant’s audit committee (the “Committee”) has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the registrant’s affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operation or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 for all of the registrants the Committee oversees. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

 

 

 

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to one or more of its members the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

 

 

 

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

 

 

(f) Not Applicable

 

 

 

(g) Affiliates’ Aggregate Non-Audit Fees:

 

Entity Name

Current Fiscal Year End

Previous Fiscal Year End

 

 

 

BlackRock MuniHoldings Fund, Inc.

$20,377

$418,128

 

 

 

 

(h) The registrant’s audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant’s investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

 

 

Regulation S-X Rule 2-01(c)(7)(ii) – $10,777, 0%

 

 

Item 5 –

Audit Committee of Listed Registrants – The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

 

 

 

Kent Dixon (retired effective December 31, 2009)

 

Frank J. Fabozzi

 

James T. Flynn

 

W. Carl Kester

 

Karen P. Robards

 

 

Item 6 –

Investments

 

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

 

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of directors has delegated the voting of proxies for the Fund securities to the Fund’s investment adviser (“Investment Adviser”) pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the

 


 

Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at http://www.sec.gov.

 

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies – as of April 30, 2010.

 

 

(a)(1)

The registrant is managed by a team of investment professionals comprised of Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock and Walter O’Connor, Managing Director at BlackRock. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and/or selection of its investments. Messrs. Jaeckel and O’Connor have been members of the registrant’s portfolio management team since 2006 and 2006, respectively.

 

Portfolio Manager

Biography

Theodore R. Jaeckel, Jr.

Managing Director at BlackRock, Inc. since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2005 to 2006; Director of MLIM from 1997 to 2005.

Walter O’Connor

Managing Director of BlackRock, Inc. since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.

 

 

(a)(2)

As of April 30, 2010:

     

 

(ii) Number of Other Accounts Managed

and Assets by Account Type

(iii) Number of Other Accounts and

Assets for Which Advisory Fee is

Performance-Based

(i) Name of

Portfolio Manager

Other

Registered

Investment

Companies

Other Pooled

Investment

Vehicles

Other

Accounts

Other

Registered

Investment

Companies

Other Pooled

Investment

Vehicles

Other

Accounts 

Theodore R. Jaeckel, Jr.

72

0

0

0

0

0

 

$19.66 Billion

$0

$0

$0

$0

$0

Walter O’Connor

72

0

0

0

0

0

 

$19.66 Billion

$0

$0

$0

$0

$0

 

 

(iv)

Potential Material Conflicts of Interest

 

     

BlackRock and its affiliates (collectively, herein “BlackRock”) has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such

 


    

fees), which may be the same as or different from those made to the Fund.  In addition, BlackRock, its affiliates and significant shareholders and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund.  BlackRock, or any of its affiliates or significant shareholders, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities.  Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information.  Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund.  In this connection, it should be noted that a portfolio manager may currently manage certain accounts that are subject to performance fees.  In addition, a portfolio manager may assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred.  Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees.

 

 

 

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly.  When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties.  BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment.  To this end, BlackRock has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time.  This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base.

 

 

(a)(3)

As of April 30, 2010:

 

     

Portfolio Manager Compensation Overview

 

 

 

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock such as its Long-Term Retention and Incentive Plan.

 

 

 

Base compensation. Generally, portfolio managers receive base compensation based on their seniority and/or their position with the firm. Senior portfolio managers who perform additional management functions within the portfolio management group or within BlackRock may receive additional compensation for serving in these other capacities.

 

 

   

    

Discretionary Incentive Compensation

 

Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s seniority, role within the portfolio management team, teamwork and contribution to the overall performance of these portfolios and BlackRock.  In most cases, including for the portfolio managers of the Fund, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment Officers determine the benchmarks against which the performance of funds and other accounts managed by each portfolio manager is compared and the period of time over which performance is evaluated.  With respect to the portfolio managers, such benchmarks for the Fund include a combination of market-based indices (e.g. Barclays Capital Municipal Bond Index), certain customized indices and certain fund industry peer groups.

 

 

 

BlackRock’s Chief Investment Officers make a subjective determination with respect to the portfolio managers’ compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks noted above.  Performance is measured on both a pre-tax and after-tax basis over various time periods including 1, 3, 5 and 10-year periods, as applicable. 

 

 

 

Distribution of Discretionary Incentive Compensation

 

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods.

 

 

 

Long-Term Retention and Incentive Plan (“LTIP”) — From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align their interests with long-term shareholder interests and motivate performance.  Equity awards are generally granted in the form of BlackRock, Inc. restricted stock units that, once vested, settle in BlackRock, Inc. common stock. Messrs. Jaeckel and O’Connor have each received awards under the LTIP.

 

 

 

Deferred Compensation Program — A portion of the compensation paid to eligible BlackRock employees may be voluntarily deferred into an account that tracks the performance of certain of the firm’s investment products. Each participant in the deferred compensation program is permitted to allocate his deferred amounts among the various investment options. Messrs. Jaeckel and O’Connor have each participated in the deferred compensation program.

     

 

 

Other compensation benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

 

 

 

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the

 

 

 


     

BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation.  The RSP offers a range of investment options, including registered investment companies managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent employee investment direction, are invested into a balanced portfolio.  The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.  Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000.  Each portfolio manager is eligible to participate in these plans.

 

 

(a)(4)

Beneficial Ownership of Securities – April 30, 2010.

 

Portfolio Manager

Dollar Range of Equity Securities Beneficially Owned

Theodore R. Jaeckel, Jr.

$1 - $10,000

Walter O’Connor

None

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.

 

 

Item 10 –

Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.

 

 

Item 11 –

Controls and Procedures

 

 

11(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 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

11(b) –

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

 

 

   

Item 12 –

Exhibits attached hereto

 

 

12(a)(1) –

Code of Ethics – See Item 2

 

 

12(a)(2) –

Certifications – Attached hereto

 

 

12(a)(3) –

Not Applicable

 

 

12(b) –

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 Fund, Inc.

   
  By: /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock MuniHoldings Fund, Inc.
   
  Date: June 28, 2010
   
  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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Fund, Inc.
   
  Date: June 28, 2010
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniHoldings Fund, Inc.
     
  Date: June 28, 2010