UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES

Investment Company Act file number 811-07642

Name of Fund: BlackRock MuniAssets Fund, Inc. (MUA)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock MuniAssets 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: 10/31/2009

Item 1 – Report to Stockholders




EQUITIES  FIXED INCOME  REAL ESTATE  LIQUIDITY  ALTERNATIVES  BLACKROCK SOLUTIONS

 

 

Semi-Annual Report

(BLACKROCK LOGO)

 

 

OCTOBER 31, 2009 | (UNAUDITED)

 


 

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

 

Semi-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

 

49

 

Statements of Operations

 

51

 

Statements of Changes in Net Assets

 

52

 

Statements of Cash Flows

 

56

 

Financial Highlights

 

57

 

Notes to Financial Statements

 

65

 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

 

72

 

Officers and Directors

 

76

 

Additional Information

 

77

 

 

 

 

 




2

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Dear Shareholder

Over the past 12 months, we have witnessed a seismic shift in market sentiment — from fear and pessimism during the worst economic decline and crisis of confidence in financial markets since The Great Depression to increasing optimism amid emerging signs of recovery. The period began in the midst of an intense deterioration in global economic activity and financial markets in the final months of 2008 and the early months of 2009. The collapse of confidence resulted in massive government policy intervention on a global scale in the financial system and the economy. The tide turned dramatically in March 2009, however, on the back of new US government initiatives, as well as better-than-expected economic data and upside surprises in corporate earnings.

Not surprisingly, global equity markets endured extreme volatility over the past 12 months, starting with steep declines and heightened risk aversion in the early part of the reporting period, which eventually gave way to an impressive rally that began in March. Although there have been fits and starts along the way and a few modest corrections, the new bull market has pushed all major US indices well into positive territory for 2009. The experience in international markets was similar to that in the United States. In particular, emerging markets (which were less affected by the global credit crunch and are experiencing faster economic growth rates when compared to the developed world) have posted impressive gains since the rally began.

In fixed income markets, the flight-to-safety premium in Treasury securities prevailed during the equity market downturn, which drove yields sharply lower, but concerns about deficit spending, debt issuance, inflation and dollar weakness have kept Treasury yields range bound in recent months. As economic and market conditions began to improve in early 2009, near-zero interest rates on risk-free assets prompted many investors to reallocate money from cash investments into higher-yielding and riskier non-Treasury assets. The high yield sector was the greatest beneficiary of this move, having decisively outpaced all other taxable asset classes since the start of 2009. Similarly, the municipal bond market is on pace for its best performance year ever in 2009, following one of its worst years in 2008. Investor demand remains strong for munis, helping to create a highly favorable technical backdrop. Municipal bond mutual funds are seeing record inflows, reflecting the renewed investor interest in the asset class.

As a result of the rebound in sentiment and global market conditions, most major benchmark indexes are now in positive territory for both the 6- and 12-month periods.

 

 

 

 

 

 

 

 

Total Returns as of October 31, 2009

 

6-month

 

12-month

 









US equities (S&P 500 Index)

 

20.04

%

 

9.80

%

 









Small cap US equities (Russell 2000 Index)

 

16.21

 

 

6.46

 

 









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

 

31.18

 

 

27.71

 

 









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

 

(0.79

)

 

8.12

 

 









Taxable fixed income (Barclays Capital US Aggregate Bond Index)

 

5.61

 

 

13.79

 

 









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

 

4.99

 

 

13.60

 

 









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

 

27.72

 

 

48.65

 

 









 

 

 

*

Formerly a Merrill Lynch index.

 

 

 

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

The market environment has visibly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and investment insight, visit the most recent issue of our award-winning Shareholder® magazine at www.blackrock.com/shareholdermagazine. As always, we thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

-s- Rob Kapito

Rob Kapito
President, BlackRock Advisors, LLC

 


Announcement to Shareholders


On December 1, 2009, BlackRock, Inc. and Barclays Global Investors, N.A. combined to form one of the world’s preeminent investment management firms. The new company, operating under the BlackRock name, manages $3.19 trillion in assets** and offers clients worldwide a full complement of active management, enhanced and index investment strategies and products, including individual and institutional separate accounts, mutual funds and other pooled investment vehicles, and the industry-leading iShares platform of exchange traded funds.

 

 

**

Data is as of September 30, 2009, is subject to change, and is based on a pro forma estimate of assets under management and other data at BlackRock, Inc. and Barclays Global Investors.

 

 

 

 




 

THIS PAGE NOT PART OF YOUR FUND REPORT

3




 

 



 

 

Fund Summary as of October 31, 2009

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 six months ended October 31, 2009, the Fund returned 12.25% based on market price and 18.38% 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 19.61% on a market price basis and 22.12% on a NAV basis. All returns reflect reinvestment of dividends. The Fund moved from a premium to a discount to NAV by period end, which accounts for the difference between performance based on price and performance based on NAV. Negative performance factors included a relatively short duration stance, yield curve positioning and an above-average credit profile. Low exposure to the tobacco, long-term care and development district sectors also proved detrimental. The Fund’s lower degree of leverage versus many of its Lipper peers further hindered relative performance. Positive factors included concentrations in transportation and corporate-related debt.

 

 

 

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 October 31, 2009 ($8.38)1

 

6.66%

Tax Equivalent Yield2

 

10.25%

Current Monthly Distribution per Common Share3

 

$0.0465

Current Annualized Distribution per Common Share3

 

$0.5580

Leverage as of October 31, 20094

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

10/31/09

 

4/30/09

 

Change

 

High

 

Low

 














Market Price

 

$8.38

 

$7.72

 

8.55

%

 

$8.90

 

$7.46

 

Net Asset Value

 

$8.78

 

$7.67

 

14.47

%

 

$9.06

 

$7.67

 














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

 


Sector Allocations


 

 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 







Corporate

 

25

%

 

24

%

 

Health

 

24

 

 

22

 

 

County/City/Special District/School District

 

19

 

 

20

 

 

Transportation

 

9

 

 

11

 

 

Education

 

5

 

 

6

 

 

State

 

5

 

 

2

 

 

Utilities

 

5

 

 

6

 

 

Housing

 

4

 

 

6

 

 

Tobacco

 

4

 

 

3

 

 









 

 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 







AAA/Aaa

 

7

%

 

7

%

 

AA/Aa

 

3

 

 

5

 

 

A/A

 

13

 

 

12

 

 

BBB/Baa

 

28

 

 

23

 

 

BB/Ba

 

8

 

 

10

 

 

B/B

 

7

 

 

5

 

 

CCC/Caa

 

4

 

 

3

 

 

Not Rated6

 

30

 

 

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 October 31, 2009 and April 30, 2009, the market value of these securities was $6,443,683 representing 4% and $8,923,111 representing 5%, respectively, of the Fund’s long-term investments.

 

 

 

 




4

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

 

Fund Summary as of October 31, 2009

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 six months ended October 31, 2009, the Fund returned 9.95% based on market price and 18.35% based on NAV. For the same period, the closed-end Lipper High Yield Municipal Debt Funds category posted an average return of 19.61% on a market price basis and 22.12% on a NAV basis. All returns reflect reinvestment of dividends. The Fund moved from a premium to a discount to NAV by period end, which accounts for the difference between performance based on price and performance based on NAV. Negative performance factors included a relatively short duration stance, yield curve positioning and an above-average credit profile. Low exposure to the tobacco, long-term care and development district sectors also proved detrimental. The Fund’s lower degree of leverage versus many of its Lipper peers further hindered relative performance. Positive factors included concentrations in transportation, health and corporate-related debt.

 

 

 

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 October 31, 2009 ($11.58)1

 

6.99%

Tax Equivalent Yield2

 

10.75%

Current Monthly Distribution per Common Share3

 

$0.0675

Current Annualized Distribution per Common Share3

 

$0.8100

Leverage as of October 31, 20094

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

10/31/09

 

4/30/09

 

Change

 

High

 

Low

 














Market Price

 

$11.58

 

$10.91

 

6.14

%

 

$12.71

 

$10.64

 

Net Asset Value

 

$12.10

 

$10.59

 

14.26

%

 

$12.52

 

$10.59

 














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

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 







Corporate

 

28

%

 

26

%

 

Health

 

25

 

 

25

 

 

County/City/Special District/School District

 

16

 

 

18

 

 

Transportation

 

9

 

 

12

 

 

Utilities

 

6

 

 

7

 

 

Education

 

5

 

 

4

 

 

State

 

4

 

 

2

 

 

Housing

 

4

 

 

4

 

 

Tobacco

 

3

 

 

2

 

 









 

 

 

 

 

 

 

 







Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 







AAA/Aaa

 

8

%

 

9

%

 

AA/Aa

 

3

 

 

3

 

 

A/A

 

17

 

 

19

 

 

BBB/Baa

 

25

 

 

19

 

 

BB/Ba

 

8

 

 

9

 

 

B/B

 

7

 

 

5

 

 

CCC/Caa

 

4

 

 

3

 

 

CC/Ca

 

 

 

1

 

 

Not Rated6

 

28

 

 

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 October 31, 2009 and April 30, 2009, the market value of these securities was $11,551,977 representing 4% and $12,884,659 representing 5%, respectively, of the Fund’s long-term investments.

 

 

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

5




 

 


 

 

Fund Summary as of October 31, 2009

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 six months ended October 31, 2009, the Fund returned 13.82% based on market price and 11.79% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.62% on a market price basis and 9.56% 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 positively contributed to Fund performance during the reporting period were: exposure to the long end of the curve during a period of yield-curve flattening and 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, low exposure to the utilities and education sectors detracted from Fund performance as both segments performed well.

 

 

 

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 October 31, 2009 ($9.80)1

6.49%

Tax Equivalent Yield2

9.98%

Current Monthly Distribution per Common Share3

$0.053

Current Annualized Distribution per Common Share3

$0.636

Leverage as of October 31, 20094

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

10/31/09

 

4/30/09

 

Change

 

High

 

Low

 


Market Price

 

$

9.80

 

$

8.88

 

10.36

%

 

$

10.80

 

$

8.59

 

Net Asset Value

 

$

10.59

 

$

9.77

 

8.39

%

 

$

11.16

 

$

9.62

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


County/City/Special District/School District

 

29

%

 

29

%

 

Transportation

 

23

 

 

23

 

 

State

 

18

 

 

21

 

 

Utilities

 

13

 

 

12

 

 

Health

 

5

 

 

4

 

 

Housing

 

5

 

 

4

 

 

Corporate

 

4

 

 

4

 

 

Education

 

3

 

 

2

 

 

Tobacco

 

 

 

1

 

 


 

 

 

 

 

 

 

 


Credit Quality Allocations5

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


AAA/Aaa

 

42

%

 

45

%

 

AA/Aa

 

23

 

 

33

 

 

A/A

 

28

 

 

19

 

 

BBB/Baa

 

5

 

 

3

 

 

Not Rated

 

2

 

 

 

 



 

 

5

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


 

 

 


6

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

Fund Summary as of October 31, 2009

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 six months ended October 31, 2009, the Fund returned 26.84% based on market price and 17.38% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 16.28% on a market price basis and 14.93% 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. Positive performance factors included concentrations in health, housing and corporate-related debt. Renewed risk appetite was also beneficial, given the Fund’s focus on lower-rated credits. In addition, the Fund’s long duration stance and emphasis on longer-dated bonds were additive as yields on the long end of the curve fell substantially. Negative factors included less exposure to the tax-backed, essential services and tobacco sectors.

 

 

 

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 October 31, 2009 ($14.66)1

6.83%

Tax Equivalent Yield2

10.51%

Current Monthly Distribution per Common Share3

$0.0835

Current Annualized Distribution per Common Share3

$1.0020

Leverage as of October 31, 20094

37%



 

 

1

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

 

 

2

Tax equivalent yield assumes the maximum 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

10/31/09

 

4/30/09

 

Change

 

High

 

Low

 


Market Price

 

$

14.66

 

$

11.97

 

22.47

%

 

$

15.15

 

$

11.88

 

Net Asset Value

 

$

15.04

 

$

13.27

 

13.34

%

 

$

15.84

 

$

13.27

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


Health

 

25

%

 

19

%

 

Corporate

 

13

 

15

 

County/City/Special District/School District

 

13

 

 

13

 

 

Utilities

 

11

 

 

10

 

 

State

 

10

 

 

10

 

 

Education

 

9

 

 

9

 

 

Transportation

 

9

 

 

11

 

 

Housing

 

8

 

 

9

 

 

Tobacco

 

2

 

 

4

 

 


 

 

 

 

 

 

 

 


Credit Quality Allocations5

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


AAA/Aaa

 

21

%

 

29

%

 

AA/Aa

 

28

 

 

21

 

 

A/A

 

26

 

 

24

 

 

BBB/Baa

 

10

 

 

10

 

 

BB/Ba

 

2

 

 

2

 

 

B/B

 

2

 

 

1

 

 

CCC/Caa

 

2

 

 

2

 

 

Not Rated2

 

9

 

 

11

 

 



 

 

5

Using the higher of S&P’s of Moody’s Ratings.

 

 

6

The investments advisor has deemed certain of these securities to be of investments grade quality. As of October 31, 2009 and April 30, 2009, the market value of these securities was $6,553,517 representing 2% and $6,532,075 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

7




 

 


 

 

Fund Summary as of October 31, 2009

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 six months ended October 31, 2009, the Fund returned 21.15% based on market price and 16.22% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 16.28% on a market price basis and 14.93% 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. Positive performance factors included concentrations in health, housing and corporate-related debt. Renewed risk appetite was also beneficial, given the Fund’s focus on lower-rated credits. In addition, the Fund’s long duration stance and emphasis on longer-dated bonds were additive as yields on the long end of the curve fell substantially. Negative factors included less exposure to the tax-backed, essential services and tobacco sectors. During the period, cash reserves were at low levels, as returns on cash are minimal.

 

 

 

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 October 31, 2009 ($13.26)1

6.83%

Tax Equivalent Yield2

10.51%

Current Monthly Distribution per Common Share3

$0.0755

Current Annualized Distribution per Common Share3

$0.9060

Leverage as of October 31, 20094

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

10/31/09

 

4/30/09

 

Change

 

High

 

Low

 


Market Price

 

$

13.26

 

$

11.33

 

17.03

%

 

$

14.20

 

$

11.25

 

Net Asset Value

 

$

14.00

 

$

12.47

 

12.27

%

 

$

14.72

 

$

12.46

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


Health

 

24

%

 

18

%

 

County/City/Special District/ School District

 

17

 

 

16

 

 

Corporate

 

13

 

 

11

 

 

State

 

11

 

 

10

 

 

Education

 

9

 

 

11

 

 

Utilities

 

9

 

 

9

 

 

Transportation

 

8

 

 

13

 

 

Housing

 

8

 

 

8

 

 

Tobacco

 

1

 

 

4

 

 


 

 

 

 

 

 

 

 


Credit Quality Allocations5

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


AAA/Aaa

 

18

%

 

26

%

 

AA/Aa

 

34

 

 

26

 

 

A/A

 

25

 

 

25

 

 

BBB/Baa

 

10

 

 

10

 

 

BB/Ba

 

1

 

 

1

 

 

B/B

 

2

 

 

2

 

 

CCC/Caa

 

2

 

 

1

 

 

Not Rated6

 

8

 

 

9

 

 



 

 

5

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

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2009 and April 30, 2009, the market value of these securities was $6,984,569 representing 3% and $4,974,331 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 


8

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

Fund Summary as of October 31, 2009

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 six months ended October 31, 2009, the Fund returned 17.26%, based on market price and 9.60% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.62% on a market price basis and 9.56% 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’s overweight in housing and health bonds contributed positively to results. In both sectors, the maturity range of the bonds held in the portfolio was 20 years and longer, which benefited performance as the municipal yield curve flattened. The performance of both sectors was also enhanced by the tightening in credit spreads. Conversely, the Fund’s overweight in pre-refunded holdings detracted from performance as lower-quality, longer-maturity assets outperformed the higher-quality, shorter-maturity issues in which the Fund was invested.

 

 

 

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 October 31, 2009 ($12.34)1

6.81%

Tax Equivalent Yield2

10.48%

Current Monthly Distribution per Common Share3

$0.07

Current Annualized Distribution per Common Share3

$0.84

Leverage as of October 31, 20094

42%



 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

10/31/09

 

4/30/09

 

Change

 

High

 

Low

 


Market Price

 

$

12.34

 

$

10.87

 

13.52

%

 

$

13.06

 

$

10.73

 

Net Asset Value

 

$

13.02

 

$

12.27

 

6.11

%

 

$

13.81

 

$

11.98

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


County/City/Special District/ School District

 

36

%

 

39

%

 

Utilities

 

19

 

 

9

 

 

Transportation

 

16

 

 

17

 

 

State

 

13

 

 

17

 

 

Health

 

9

 

 

6

 

 

Housing

 

5

 

 

9

 

 

Corporate

 

2

 

 

2

 

 

Education

 

 

 

1

 

 


 

 

 

 

 

 

 

 


Credit Quality Allocations5

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


AAA/Aaa

 

53

%

 

83

%

 

AA/Aa

 

16

 

 

8

 

 

A/A

 

26

 

 

8

 

 

BBB/Baa

 

3

 

 

1

 

 

Not Rated6

 

2

 

 

 

 



 

 

5

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

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of October 31, 2009 and April 30, 2009, the market value of these securities was $5,883,162 representing 2% and $3,333,138 representing 1%, respectively, of the Fund’s long-term investments.


 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

9




 

 


 

 

Fund Summary as of October 31, 2009

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 six months ended October 31, 2009, the Fund returned 13.36% based on market price and 12.11% based on NAV. For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 10.23% on a market price basis and 9.33% 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. Exposure to lower-rated and corporate-backed holdings contributed positively to Fund performance; these issues rebounded sharply as the municipal market rallied and credit spreads compressed. In addition, management was able to capitalize on opportunities in the new-issue market, adding discounted coupon bonds in higher-tax states, which tend to outperform as rates fall and secondary demand by the retail sector increases. The Fund also benefited from maintaining an above-average dividend to the shareholder. Despite adding both duration and positive convexity through the new-issue market, overall performance was hampered by the Fund’s neutral to slightly short duration bias relative to its Lipper peers. Lack of exposure to the utilities and transportation sectors, which outperformed during the period, also had a negative impact on results.

 

 

 

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 October 31, 2009 ($12.95)1

6.07%

Tax Equivalent Yield2

9.34%

Current Monthly Distribution per Common Share3

$0.0655

Current Annualized Distribution per Common Share3

$0.7860

Leverage as of October 31, 20094

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 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

10/31/09

 

4/30/09

 

Change

 

High

 

Low

 


Market Price

 

$

12.95

 

$

11.77

 

10.03

%

 

$

13.98

 

$

11.51

 

Net Asset Value

 

$

14.20

 

$

13.05

 

8.81

%

 

$

14.79

 

$

13.01

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


City/County/Special District/ School District

 

24

%

 

25

%

 

State

 

22

 

 

23

 

 

Transportation

 

8

 

 

13

 

 

Corporate

 

14

 

 

11

 

 

Health

 

10

 

 

10

 

 

Utilities

 

9

 

 

7

 

 

Tobacco

 

6

 

 

6

 

 

Housing

 

3

 

 

3

 

 

Education

 

4

 

 

2

 

 


 

 

 

 

 

 

 

 


Credit Quality Allocations5

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


AAA/Aaa

 

30

%

 

36

%

 

AA/Aa

 

23

 

 

30

 

 

A/A

 

22

 

 

11

 

 

BBB/Baa

 

14

 

 

12

 

 

BB/Ba

 

1

 

 

 

 

B/B

 

1

 

 

1

 

 

CCC/Caa

 

2

 

 

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 October 31, 2009 and April 30, 2009, the market value of these securities was $18,183,479 representing 2% and $16,548,864 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 


10

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

Fund Summary as of October 31, 2009

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 six months ended October 31, 2009, the Fund returned 24.21%, based on market price and 19.70% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 16.28% on a market price basis and 14.93% on a NAV basis. All returns reflect reinvestment of dividends. The Fund moved from a discount to a premium to NAV by period end, which accounts for the difference between performance based on price and performance based on NAV. Positive performance factors included concentrations in health, transportation and corporate-related debt. Renewed risk appetite was also beneficial, given the Fund’s focus on lower-rated credits. In addition, the Fund’s long duration stance and emphasis on longer-dated bonds were significant positive contributors as yields on the long end of the curve fell substantially. Negative factors included less exposure to the tax-backed and essential services sectors.

 

 

 

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 October 31, 2009 ($13.94)1

7.19%

Tax Equivalent Yield2

11.06%

Current Monthly Distribution per Common Share3

$0.0835

Current Annualized Distribution per Common Share3

$1.0020

Leverage as of October 31, 20094

42%



 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

10/31/09

 

4/30/09

 

Change

 

High

 

Low

 


Market Price

 

$

13.94

 

$

11.65

 

19.66

%

 

$

14.81

 

$

11.54

 

Net Asset Value

 

$

13.78

 

$

11.95

 

15.31

%

 

$

14.55

 

$

11.94

 


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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


Health

 

21

%

 

18

%

 

Corporate

 

17

 

 

16

 

 

State

 

13

 

 

14

 

 

Transportation

 

13

 

 

13

 

 

County/City/Special District/ School District

 

12

 

 

13

 

 

Utilities

 

11

 

 

11

 

 

Education

 

6

 

 

6

 

 

Housing

 

5

 

 

5

 

 

Tobacco

 

2

 

 

4

 

 


 

 

 

 

 

 

 

 


Credit Quality Allocations5

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

10/31/09

 

4/30/09

 


AAA/Aaa

 

20

%

 

26

%

 

AA/Aa

 

34

 

 

28

 

 

A/A

 

19

 

 

18

 

 

BBB/Baa

 

13

 

 

12

 

 

BB/Ba

 

1

 

 

1

 

 

B/B

 

3

 

 

2

 

 

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 October 31, 2009 and April 30, 2009, the market value of these securities was $9,091,136 representing 2% and $10,825,769 representing 3%, respectively, of the Fund’s long-term investments.


 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

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 October 31, 2009, the Funds had economic leverage from Preferred Shares and TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 





 

 

Percent of
Leverage

 





APX

 

4

%

 

MUA

 

4

%

 

MEN

 

39

%

 

MHD

 

37

%

 

MUH

 

36

%

 

MUS

 

42

%

 

MUI

 

39

%

 

MVT

 

42

%

 







 


 

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 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 and 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

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

Schedule of Investments October 31, 2009 (Unaudited)

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







Alabama — 0.6%

 

 

 

 

 

 

 

County of Jefferson, Alabama, RB, Series A,
5.00%, 1/01/10

 

$

475

 

$

466,531

 

Tuscaloosa Special Care Facilities Financing Authority,
RB, Capstone Village, Series A, 5.88%, 8/01/36 (a)(b)

 

 

1,255

 

 

502,000

 

 

 

 

 

 




 

 

 

 

 

 

968,531

 









Alaska — 1.0%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,731,560

 









Arizona — 4.5%

 

 

 

 

 

 

 

Maricopa County IDA, Arizona, RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project 1, Series A,
6.63%, 7/01/20

 

 

1,100

 

 

836,451

 

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

 

 

10

 

 

9,881

 

Sun King Apartments Project, Series A,
6.75%, 5/01/31

 

 

1,020

 

 

745,600

 

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

 

 

2,950

 

 

1,949,124

 

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

 

 

960

 

 

896,064

 

Pima County IDA, Refunding RB, Tucson Electric Power Co.,
San Juan, Series A, 4.95%, 10/01/20

 

 

705

 

 

706,509

 

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

 

 

1,950

 

 

1,743,690

 

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

 

 

540

 

 

570,839

 

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

 

 

500

 

 

496,190

 

 

 

 

 

 




 

 

 

 

 

 

7,954,348

 









California — 2.9%

 

 

 

 

 

 

 

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

 

 

765

 

 

711,312

 

California State, GO, Refunding, 4.50%, 10/01/36

 

 

1,755

 

 

1,475,306

 

California Statewide Communities Development
Authority, RB, Senior Living Southern California
Presbyterian Homes:

 

 

 

 

 

 

 

7.00%, 11/15/29

 

 

400

 

 

429,828

 

7.25%, 11/15/41

 

 

1,440

 

 

1,543,925

 

City of Fontana, California, Special Tax, Community
Facilities District No. 22 — Sierra, 6.00%, 9/01/34

 

 

1,000

 

 

855,860

 

 

 

 

 

 




 

 

 

 

 

 

5,016,231

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Colorado — 3.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Christian Living
Community Project, Series A, 5.75%, 1/01/26

 

$

450

 

$

388,197

 

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

 

 

2,800

 

 

2,685,564

 

Plaza Metropolitan District No. 1, Colorado, TAN,
Tax Increment:

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,952,200

 

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

 

 

500

 

 

464,315

 

 

 

 

 

 




 

 

 

 

 

 

5,490,276

 









Connecticut — 2.0%

 

 

 

 

 

 

 

Mashantucket Western Pequot Tribe, RB, 2006
Sub-Series A, 5.50%, 9/01/36 (c)

 

 

615

 

 

327,752

 

Mashantucket Western Pequot Tribe, Refunding RB,
Sub-Series B, 5.75%, 9/01/27 (c)

 

 

1,400

 

 

740,796

 

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

 

 

 

 

 

 

 

6.25%, 1/01/31

 

 

1,785

 

 

1,383,304

 

5.25%, 1/01/33 (c)

 

 

1,500

 

 

1,001,865

 

 

 

 

 

 




 

 

 

 

 

 

3,453,717

 









District of Columbia — 1.2%

 

 

 

 

 

 

 

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

 

 

730

 

 

688,149

 

Metropolitan Washington Airports Authority, RB, CAB,
Second Senior Lien, Series B (AGC), 6.74%,
10/01/39 (d)

 

 

9,770

 

 

1,496,569

 

 

 

 

 

 




 

 

 

 

 

 

2,184,718

 









Florida — 9.1%

 

 

 

 

 

 

 

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

 

 

645

 

 

591,974

 

Hillsborough County IDA, RB, National Gypsum, AMT:

 

 

 

 

 

 

 

Series A, 7.13%, 4/01/30

 

 

2,500

 

 

1,723,925

 

Series B, 7.13%, 4/01/30

 

 

1,560

 

 

1,075,729

 

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

 

 

900

 

 

626,292

 

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

 

 

840

 

 

849,324

 

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

 

 

1,810

 

 

1,288,521

 

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

 

 

345

 

 

299,888

 

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

 

 

 

 

 

 

 

6.00%, 5/01/24

 

 

1,430

 

 

1,196,796

 

6.25%, 5/01/37

 

 

1,350

 

 

1,086,318

 

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

 

 

2,140

 

 

1,155,258

 


 


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 list on the right.

 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty 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

CIFG

CDC IXIS Financial Guaranty

COP

Certificates of Participation

EDA

Economic Development Authority

FGIC

Financial Guaranty Insurance Co.

FHA

Federal Housing Administration

FSA

Financial Security Assurance Inc.

GO

General Obligation Bonds

GNMA

Government National Mortgage Association

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

IDRB

Industrial Development Revenue Bonds

M/F

Multi-Family

MBIA

Municipal Bond Investors Assurance (National Public Finance Guaranty Corp.)

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

S/F

Single-Family

TAN

Tax Anticipation Notes

VRDN

Variable Rate Demand Note


 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

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)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.50%, 1/01/27

 

$

590

 

$

494,025

 

5.50%, 1/01/32

 

 

550

 

 

405,994

 

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

 

 

470

 

 

476,787

 

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

 

 

1,615

 

 

1,163,882

 

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

 

 

2,075

 

 

2,053,254

 

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

 

 

1,850

 

 

1,408,997

 

 

 

 

 

 




 

 

 

 

 

 

15,896,964

 









Georgia — 2.2%

 

 

 

 

 

 

 

City of Atlanta, Georgia, TAN, Princeton Lakes Project,
5.50%, 1/01/31

 

 

395

 

 

330,042

 

County of Clayton, Georgia, TAN, Ellenwood Project,
7.50%, 7/01/33

 

 

1,640

 

 

1,581,846

 

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

 

 

645

 

 

676,540

 

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

 

 

1,680

 

 

1,348,166

 

 

 

 

 

 




 

 

 

 

 

 

3,936,594

 









Guam — 3.3%

 

 

 

 

 

 

 

Guam Government Waterworks Authority, RB, Water:

 

 

 

 

 

 

 

6.00%, 7/01/25

 

 

515

 

 

515,927

 

5.88%, 7/01/35

 

 

1,600

 

 

1,521,664

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

250

 

 

260,322

 

6.75%, 11/15/29

 

 

440

 

 

470,774

 

7.00%, 11/15/39

 

 

455

 

 

491,782

 

Territory of Guam, RB, Section 30, Series A:

 

 

 

 

 

 

 

5.63%, 12/01/29

 

 

1,000

 

 

1,006,450

 

5.75%, 12/01/34

 

 

1,540

 

 

1,568,228

 

 

 

 

 

 




 

 

 

 

 

 

5,835,147

 









Illinois — 4.1%

 

 

 

 

 

 

 

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

 

 

2,860

 

 

1,857,713

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Clare at Water Tower Project, Series A,
6.13%, 5/15/38

 

 

2,050

 

 

1,031,088

 

Monarch Landing Inc. Facilities, Series A,
7.00%, 12/01/37

 

 

575

 

 

287,500

 

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

 

 

490

 

 

426,893

 

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

 

 

2,000

 

 

2,259,560

 

Lincolnshire Special Service Area No. 1, Illinois, Special
Tax, Sedgebrook Project, 6.25%, 3/01/34

 

 

755

 

 

585,827

 

Village of Wheeling, Illinois, TAN, North Milwaukee,
Lake-Cook Increment Financing Redevelopment
Project, 6.00%, 1/01/25

 

 

760

 

 

664,506

 

 

 

 

 

 




 

 

 

 

 

 

7,113,087

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Indiana — 2.6%

 

 

 

 

 

 

 

Indiana Finance Authority, Refunding RB, Duke Energy,
Series C, 4.95%, 10/01/40

 

$

1,390

 

$

1,325,282

 

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

 

 

1,770

 

 

1,676,615

 

Vanderburgh County Redevelopment Commission,
Indiana, TAN, 5.25%, 2/01/31

 

 

820

 

 

771,907

 

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

 

 

 

 

 

 

 

5.70%, 9/01/37

 

 

440

 

 

343,323

 

5.75%, 9/01/42

 

 

545

 

 

420,555

 

 

 

 

 

 




 

 

 

 

 

 

4,537,682

 









Louisiana — 1.1%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,916,840

 









Maryland — 1.0%

 

 

 

 

 

 

 

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

 

 

410

 

 

207,915

 

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

 

 

1,500

 

 

1,500,315

 

 

 

 

 

 




 

 

 

 

 

 

1,708,230

 









Massachusetts — 2.6%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB:

 

 

 

 

 

 

 

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

 

 

1,245

 

 

1,115,595

 

First Mortgage, Overlook Community, Series A,
6.25%, 7/01/34

 

 

1,845

 

 

1,534,505

 

Massachusetts Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

Jordan Hospital, Series E, 6.75%, 10/01/33

 

 

850

 

 

758,463

 

Milton Hospital, Series C, 5.50%, 7/01/16

 

 

500

 

 

432,325

 

Massachusetts Industrial Finance Agency, RB, Sewer
Facility, Resource Control Composting, AMT,
9.25%, 6/01/10

 

 

200

 

 

201,362

 

Massachusetts State Port Authority Special Facilities, RB,
Delta Airline Inc. Project, Series B (AMBAC),
5.50%, 1/01/13

 

 

650

 

 

588,464

 

 

 

 

 

 




 

 

 

 

 

 

4,630,714

 









Michigan — 2.6%

 

 

 

 

 

 

 

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

 

 

625

 

 

512,794

 

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

 

 

1,260

 

 

966,836

 

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

 

 

2,575

 

 

2,990,579

 

 

 

 

 

 




 

 

 

 

 

 

4,470,209

 









Missouri — 0.5%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

840,270

 









Multi-State — 0.4%

 

 

 

 

 

 

 

MuniMae Tax-Exempt Bond Subsidiary LLC, 7.50%,
6/30/49 (c)(e)(f)

 

 

700

 

 

649,236

 










 

 

 

See Notes to Financial Statements.

 




14

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

Schedule of Investments (continued)

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Nevada — 0.7%

 

 

 

 

 

 

 

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

 

$

390

 

$

367,333

 

County of Clark, Nevada, RB, Nevada Power Co. Project,
Series A, AMT, 5.60%, 10/01/30

 

 

955

 

 

900,011

 

 

 

 

 

 




 

 

 

 

 

 

1,267,344

 









New Hampshire — 0.4%

 

 

 

 

 

 

 

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

 

 

835

 

 

695,572

 









New Jersey — 9.4%

 

 

 

 

 

 

 

Camden County Pollution Control Financing Authority, RB,
Series A, AMT, 7.50%, 12/01/10

 

 

4,885

 

 

4,885,782

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.50%, 6/15/24

 

 

2,170

 

 

2,071,265

 

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

 

 

3,050

 

 

2,987,505

 

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

 

 

1,000

 

 

854,430

 

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

 

 

1,500

 

 

1,476,285

 

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

 

 

 

 

 

 

 

7.13%, 12/01/23

 

 

670

 

 

754,494

 

7.50%, 12/01/32

 

 

1,065

 

 

1,199,137

 

New Jersey Health Care Facilities Financing Authority, RB:

 

 

 

 

 

 

 

Pascack Valley Hospital Association, 6.63%,
7/01/36 (a)(b)

 

 

1,870

 

 

187

 

Saint Josephs Healthcare System, 6.63%, 7/01/38

 

 

1,680

 

 

1,700,210

 

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

 

 

2,760

 

 

538,531

 

 

 

 

 

 




 

 

 

 

 

 

16,467,826

 









New Mexico — 2.9%

 

 

 

 

 

 

 

Farmington, New Mexico, RB, Tucson Electric Power Co.
San Juan, Series A, 6.95%, 10/01/20

 

 

5,000

 

 

5,003,750

 









New York — 4.4%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

972,080

 

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

 

 

2,000

 

 

2,267,380

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

720

 

 

721,786

 

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

 

 

1,730

 

 

1,617,342

 

Series C, 6.80%, 6/01/28

 

 

350

 

 

364,077

 

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

 

 

830

 

 

762,322

 

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

 

 

630

 

 

63

 

New York State Dormitory Authority, RB, North Shore L I
Jewish, Series A, 5.50%, 5/01/37

 

 

1,000

 

 

1,010,320

 

 

 

 

 

 




 

 

 

 

 

 

7,715,370

 









North Carolina — 1.8%

 

 

 

 

 

 

 

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

 

 

3,230

 

 

3,134,230

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Ohio — 3.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.13%, 6/01/24

 

$

3,490

 

$

3,096,188

 

6.50%, 6/01/47

 

 

2,685

 

 

2,162,982

 

Ohio Air Quality Development Authority, RB, Ohio Valley
Electric Corp., 5.63%, 10/01/19

 

 

1,215

 

 

1,211,379

 

 

 

 

 

 




 

 

 

 

 

 

6,470,549

 









Pennsylvania — 7.6%

 

 

 

 

 

 

 

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

 

 

1,160

 

 

1,031,205

 

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

 

 

 

 

 

 

 

6.25%, 7/01/26

 

 

475

 

 

445,084

 

6.50%, 7/01/40

 

 

410

 

 

365,900

 

Lycoming County Authority, Refunding RB, Susquehanna
Health System Project, Series A, 5.75%, 7/01/39

 

 

1,590

 

 

1,511,867

 

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

 

 

1,700

 

 

1,193,366

 

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

 

 

4,035

 

 

3,230,461

 

Philadelphia Authority for Industrial Development, RB:

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,412,784

 

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

 

 

4,460

 

 

4,143,028

 

 

 

 

 

 




 

 

 

 

 

 

13,333,695

 









Puerto Rico — 1.9%

 

 

 

 

 

 

 

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

 

 

2,355

 

 

2,277,356

 

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

 

 

1,000

 

 

1,081,500

 

 

 

 

 

 




 

 

 

 

 

 

3,358,856

 









Rhode Island — 0.8%

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,485,032

 









South Carolina — 0.7%

 

 

 

 

 

 

 

Connector 2000 Association Inc., RB, CAB, Senior,
Series B, 9.02%, 1/01/14 (d)

 

 

1,075

 

 

321,049

 

South Carolina Jobs Economic Development Authority,
Refunding RB, Palmetto Health:

 

 

 

 

 

 

 

5.50%, 8/01/26

 

 

670

 

 

662,000

 

5.75%, 8/01/39

 

 

270

 

 

262,848

 

 

 

 

 

 




 

 

 

 

 

 

1,245,897

 









South Dakota — 0.5%

 

 

 

 

 

 

 

South Dakota Health & Educational Facilities Authority,
South Dakota, RB, Sanford Health, 5.50%, 11/01/40

 

 

810

 

 

823,081

 









Tennessee — 0.1%

 

 

 

 

 

 

 

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

 

 

245

 

 

202,395

 









Texas — 7.3%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, AMT:

 

 

 

 

 

 

 

TXU Electric Co. Project, Series C,
5.75%, 5/01/36

 

 

1,475

 

 

1,328,459

 

Texas Utility Co., Series A, 7.70%, 4/01/33

 

 

2,530

 

 

1,470,183

 

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

 

 

1,865

 

 

1,731,261

 

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

 

 

1,000

 

 

787,470

 

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

 

 

1,110

 

 

1,240,647

 


 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

15




 

 



 

 

Schedule of Investments (continued)

BlackRock Apex Municipal Fund, Inc. (APX)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







Texas (concluded)

 

 

 

 

 

 

 

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

 

$

850

 

$

909,959

 

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

 

 

1,650

 

 

1,713,657

 

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

 

 

1,710

 

 

1,653,074

 

Texas State Public Finance Authority, RB, Kipp Inc.
Education, Series A (ACA), 5.00%, 2/15/28

 

 

2,250

 

 

1,928,250

 

 

 

 

 

 




 

 

 

 

 

 

12,762,960

 









U.S. Virgin Islands — 1.4%

 

 

 

 

 

 

 

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

 

 

2,100

 

 

2,130,891

 

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

 

 

340

 

 

322,810

 

 

 

 

 

 




 

 

 

 

 

 

2,453,701

 









Utah — 1.3%

 

 

 

 

 

 

 

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

 

 

2,240

 

 

2,242,957

 









Virginia — 1.7%

 

 

 

 

 

 

 

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

 

 

2,385

 

 

2,212,231

 

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

 

 

1,250

 

 

851,538

 

 

 

 

 

 




 

 

 

 

 

 

3,063,769

 









Wisconsin — 1.0%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, RB:
New Castle Place Project, Series A,
7.00%, 12/01/31

 

 

1,320

 

 

1,234,134

 

Saint Johns Communities, Inc., 7.25%, 9/15/29

 

 

175

 

 

175,775

 

Saint Johns Communities, Inc., 7.63%, 9/15/39

 

 

350

 

 

355,208

 

 

 

 

 

 




 

 

 

 

 

 

1,765,117

 









Wyoming — 1.9%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,331,500

 

Wyoming Municipal Power Agency, Wyoming, RB, Series A,
5.38%, 1/01/42

 

 

1,000

 

 

1,008,800

 

 

 

 

 

 




 

 

 

 

 

 

3,340,300

 









Total Municipal Bonds — 94.3%

 

 

 

 

 

165,166,755

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

 

 

 

 

 

 









District of Columbia — 1.7%

 

 

 

 

 

 

 

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

 

 

2,730

 

 

3,051,849

 









Florida — 3.4%

 

 

 

 

 

 

 

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

 

 

6,130

 

 

5,974,911

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

Par 
(000)

 

Value

 









Virginia — 3.3%

 

 

 

 

 

 

 

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

 

$

5,710

 

$

5,756,194

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 8.4%

 

 

 

 

 

14,782,954

 









Total Long-Term Investments
(Cost — $190,994,855) — 102.7%

 

 

 

 

 

179,949,709

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 









Mississippi — 0.6%

 

 

 

 

 

 

 

Mississippi Business Finance Corp., RB, VRDN, Waste
Management Inc. Project, AMT, 6.88%, 3/01/10 (i)

 

 

1,000

 

 

1,010,570

 









 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 








Money Market Fund — 0.0%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.23% (j)(k)

 

 

100,308

 

 

100,308

 









Total Short-Term Securities
(Cost — $1,100,308) — 0.6%

 

 

 

 

 

1,110,878

 









Total Investments (Cost — $192,095,163*) — 103.3%

 

 

 

 

 

181,060,587

 

Other Assets Less Liabilities — 0.9%

 

 

 

 

 

1,456,528

 

Liability for Trust Certificates, Including

 

 

 

 

 

 

 

Interest Expense and Fees Payable — (4.2)%

 

 

 

 

 

(7,291,471

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

175,225,644

 

 

 

 

 

 




 









 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

184,247,406

 

 

 




Gross unrealized appreciation

 

$

7,403,691

 

Gross unrealized depreciation

 

 

(17,875,956

)

 

 




Net unrealized depreciation

 

$

(10,472,265

)

 

 





 

 

(a)

Non-income producing security.

 

 

(b)

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

 

 

(c)

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.

 

 

(d)

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

 

 

(e)

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 and is subject to mandatory redemption.

 

 

(f)

Security is perpetual in nature and has no stated maturity date.

 

 

(g)

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


 

 

 

 

 

 

 

 









Counterparty

 

Value

 

Unrealized
Depreciation

 







B.C. Ziegler

 

$

1,653,074

 

$

(9,320

)










 

 

(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)

Security may have a maturity of more than one year at time of issuance but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date and maturity shown is the date the principal owed can be covered through demand.


 

 

 

See Notes to Financial Statements.

 




16

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

 

Schedule of Investments (concluded)

BlackRock Apex Municipal Fund, Inc. (APX)


 

 

(j)

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


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







FFI Institutional Tax-Exempt Fund

 

$

302

 

$

1,451

 










 

 

 

(k)

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 methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of October 31, 2009 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 


Level 1 — Short-Term Securities

 

$

100,308

 

Level 2 — Long-Term Investments1

 

 

180,960,279

 

Level 3

 

 

 

 

 




Total

 

$

181,060,587

 

 

 




 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

17




 

 



 

 

Schedule of Investments October 31, 2009 (Unaudited)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Alabama — 0.5%

 

 

 

 

 

 

 

County of Jefferson, Alabama, RB, Series A,
5.00%, 1/01/10

 

$

685

 

$

672,786

 

Tuscaloosa Special Care Facilities Financing Authority,
RB, Capstone Village, Series A, 5.88%, 8/01/36 (a)(b)

 

 

1,820

 

 

728,000

 

 

 

 

 

 




 

 

 

 

 

 

1,400,786

 









Alaska — 0.2%

 

 

 

 

 

 

 

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

 

 

590

 

 

570,241

 









Arizona — 8.1%

 

 

 

 

 

 

 

Coconino County Pollution Control Corp., Arizona, RB,
Tucson Electric Power Navajo:

 

 

 

 

 

 

 

Series A, AMT, 7.13%, 10/01/32

 

 

3,000

 

 

3,000,990

 

Series B, 7.00%, 10/01/32

 

 

2,500

 

 

2,502,075

 

Maricopa County IDA, Arizona, RB, Series A:

 

 

 

 

 

 

 

Arizona Charter Schools Project 1, 6.63%, 7/01/20

 

 

1,625

 

 

1,235,666

 

Sun King Apartments Project, 6.75%, 5/01/31

 

 

1,615

 

 

1,180,533

 

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

 

 

4,800

 

 

3,171,456

 

Pima County IDA, RB:

 

 

 

 

 

 

 

Arizona Charter School Project, Series E,
7.25%, 7/01/31

 

 

1,375

 

 

1,283,425

 

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

 

 

500

 

 

361,485

 

Charter Schools, II, Series A, 6.75%, 7/01/11 (c)

 

 

415

 

 

455,716

 

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

 

 

675

 

 

597,193

 

Pima County IDA, Refunding RB, Tucson Electric Power
Co., San Juan, Series A, 4.95%, 10/01/20

 

 

1,025

 

 

1,027,194

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

2,840

 

 

2,539,528

 

5.00%, 12/01/37

 

 

1,850

 

 

1,573,610

 

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

 

 

865

 

 

854,265

 

University Medical Center Corp., Arizona, RB:

 

 

 

 

 

 

 

6.25%, 7/01/29

 

 

280

 

 

295,991

 

6.50%, 7/01/39

 

 

500

 

 

527,470

 

 

 

 

 

 




 

 

 

 

 

 

20,606,597

 









California — 2.8%

 

 

 

 

 

 

 

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

 

 

1,115

 

 

1,036,749

 

California State, GO, Refunding, 4.50%, 10/01/36

 

 

2,555

 

 

2,147,810

 

California Statewide Communities Development
Authority, RB, Senior Living Southern California
Presbyterian Homes:

 

 

 

 

 

 

 

7.00%, 11/15/29

 

 

600

 

 

644,742

 

7.25%, 11/15/41

 

 

2,060

 

 

2,208,670

 

City of Fontana, California, Special Tax, Community
Facilities District No. 22 — Sierra, 6.00%, 9/01/34

 

 

1,320

 

 

1,129,735

 

 

 

 

 

 




 

 

 

 

 

 

7,167,706

 









Colorado — 3.6%

 

 

 

 

 

 

 

City & County of Denver, Colorado, RB, AMT (AMBAC),
7.75%, 11/15/13

 

 

1,540

 

 

1,692,121

 

Colorado Health Facilities Authority, RB, Christian Living
Community Project, Series A, 5.75%, 1/01/26

 

 

650

 

 

560,729

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Colorado (concluded)

 

 

 

 

 

 

 

Elk Valley Public Improvement, RB, Public
Improvement Fee:

 

 

 

 

 

 

 

Series A, 7.10%, 9/01/14

 

$

1,395

 

$

1,424,267

 

Series A, 7.30%, 9/01/22

 

 

2,095

 

 

2,009,377

 

Series B, 7.45%, 9/01/31

 

 

200

 

 

182,450

 

Plaza Metropolitan District No. 1, Colorado, TAN:

 

 

 

 

 

 

 

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

 

 

2,850

 

 

2,781,885

 

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

 

 

525

 

 

487,531

 

 

 

 

 

 




 

 

 

 

 

 

9,138,360

 









Connecticut — 2.6%

 

 

 

 

 

 

 

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

 

 

3,490

 

 

3,184,136

 

Mashantucket Western Pequot Tribe, RB, 2006
Sub-Series A, 5.50%, 9/01/36 (d)

 

 

885

 

 

471,643

 

Mashantucket Western Pequot Tribe, Refunding RB,
Sub-Series B, 5.75%, 9/01/27 (d)

 

 

1,600

 

 

846,624

 

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

 

 

2,610

 

 

2,022,646

 

 

 

 

 

 




 

 

 

 

 

 

6,525,049

 









District of Columbia — 1.2%

 

 

 

 

 

 

 

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

 

 

1,055

 

 

994,517

 

Metropolitan Washington Airports Authority, RB, CAB,
Second Senior Lien, Series B (AGC), 6.53%,
10/01/30 (e)

 

 

7,000

 

 

1,957,830

 

 

 

 

 

 




 

 

 

 

 

 

2,952,347

 









Florida — 9.0%

 

 

 

 

 

 

 

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

 

 

945

 

 

867,311

 

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

 

 

1,180

 

 

1,003,413

 

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

 

 

455

 

 

457,370

 

Hillsborough County IDA, RB:

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,379,140

 

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

 

 

1,540

 

 

1,061,938

 

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

 

 

4,170

 

 

3,775,810

 

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

 

 

1,300

 

 

904,644

 

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

 

 

850

 

 

859,435

 

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

 

 

2,620

 

 

1,865,152

 

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

 

 

500

 

 

434,620

 

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

 

 

3,255

 

 

2,619,233

 

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

 

 

3,040

 

 

1,641,114

 

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

 

 

 

 

 

 

 

5.50%, 1/01/27

 

 

860

 

 

720,104

 

5.50%, 1/01/32

 

 

795

 

 

586,845

 


 

 

 

See Notes to Financial Statements.

 




18

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Florida (concluded)

 

 

 

 

 

 

 

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

 

$

1,025

 

$

1,039,801

 

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

 

 

2,380

 

 

1,715,195

 

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

 

 

2,680

 

 

2,041,142

 

 

 

 

 

 




 

 

 

 

 

 

22,972,267

 









Georgia — 2.3%

 

 

 

 

 

 

 

City of Atlanta, Georgia, TAN, Princeton Lakes Project,
5.50%, 1/01/31

 

 

640

 

 

534,752

 

County of Clayton, Georgia, TAN, Ellenwood Project,
7.50%, 7/01/33

 

 

2,375

 

 

2,290,782

 

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

 

 

 

 

 

 

 

6.38%, 11/15/29

 

 

700

 

 

736,274

 

6.63%, 11/15/39

 

 

235

 

 

246,491

 

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

 

 

2,435

 

 

1,954,039

 

 

 

 

 

 




 

 

 

 

 

 

5,762,338

 









Guam — 3.3%

 

 

 

 

 

 

 

Guam Government Waterworks Authority, RB, Water:

 

 

 

 

 

 

 

6.00%, 7/01/25

 

 

750

 

 

751,350

 

5.88%, 7/01/35

 

 

2,305

 

 

2,192,147

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

365

 

 

380,071

 

6.75%, 11/15/29

 

 

635

 

 

679,412

 

7.00%, 11/15/39

 

 

660

 

 

713,354

 

Territory of Guam, RB, Section 30, Series A:

 

 

 

 

 

 

 

5.63%, 12/01/29

 

 

1,460

 

 

1,469,417

 

5.75%, 12/01/34

 

 

2,250

 

 

2,291,242

 

 

 

 

 

 




 

 

 

 

 

 

8,476,993

 









Illinois — 3.2%

 

 

 

 

 

 

 

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

 

 

4,140

 

 

2,689,137

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Clare at Water Tower Project, Series A,
6.13%, 5/15/38

 

 

2,950

 

 

1,483,761

 

Monarch Landing Inc. Facilities, Series A,
7.00%, 12/01/37

 

 

820

 

 

410,000

 

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

 

 

685

 

 

596,779

 

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

 

 

1,170

 

 

1,321,843

 

Lincolnshire Special Service Area No. 1, Illinois, Special
Tax Sedgebrook Project, 6.25%, 3/01/34

 

 

1,070

 

 

830,245

 

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

 

 

825

 

 

721,339

 

 

 

 

 

 




 

 

 

 

 

 

8,053,104

 









Indiana — 1.6%

 

 

 

 

 

 

 

Indiana Finance Authority, RB, Refunding Duke Energy,
Series C, 4.95%, 10/01/40

 

 

2,025

 

 

1,930,716

 

Vanderburgh County Redevelopment Commission,
Indiana, TAN, 5.25%, 2/01/31

 

 

1,200

 

 

1,129,620

 

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

 

 

 

 

 

 

 

5.70%, 9/01/37

 

 

615

 

 

479,872

 

5.75%, 9/01/42

 

 

765

 

 

590,320

 

 

 

 

 

 




 

 

 

 

 

 

4,130,528

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Louisiana — 1.1%

 

 

 

 

 

 

 

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

 

$

3,000

 

$

2,875,260

 









Maryland — 1.2%

 

 

 

 

 

 

 

Maryland Economic Development Corp., RB, Health &
Mental Hygiene Program, Series A, 7.75%, 3/01/25

 

 

1,765

 

 

1,780,002

 

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

 

 

590

 

 

299,195

 

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

 

 

1,080

 

 

1,080,227

 

 

 

 

 

 




 

 

 

 

 

 

3,159,424

 









Massachusetts — 1.8%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, Refunding
RB, Dominion Energy Brayton 1, 5.75%, 12/01/42

 

 

1,200

 

 

1,261,584

 

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

 

 

1,150

 

 

1,026,157

 

Massachusetts Port Authority, RB, Delta Air Lines Inc.
Project, Series A, AMT (AMBAC), 5.50%, 1/01/19

 

 

2,400

 

 

1,937,568

 

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

 

 

500

 

 

393,345

 

 

 

 

 

 




 

 

 

 

 

 

4,618,654

 









Michigan — 2.5%

 

 

 

 

 

 

 

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

 

 

900

 

 

738,423

 

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

 

 

1,740

 

 

1,335,154

 

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

 

 

3,735

 

 

4,337,792

 

 

 

 

 

 




 

 

 

 

 

 

6,411,369

 









Minnesota — 0.8%

 

 

 

 

 

 

 

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

 

 

1,785

 

 

1,993,434

 









Missouri — 0.3%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

840,270

 









Multi-State — 0.4%

 

 

 

 

 

 

 

MuniMae Tax-Exempt Bond Subsidiary LLC, 7.50%,
6/30/49 (d)(f)

 

 

1,000

 

 

927,480

 









Nevada — 0.7%

 

 

 

 

 

 

 

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

 

 

615

 

 

579,256

 

County of Clark, Nevada, RB, Nevada Power Co. Project,
Series A, AMT, 5.60%, 10/01/30

 

 

1,380

 

 

1,300,540

 

 

 

 

 

 




 

 

 

 

 

 

1,879,796

 









New Hampshire — 0.4%

 

 

 

 

 

 

 

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

 

 

1,165

 

 

970,468

 









New Jersey — 9.7%

 

 

 

 

 

 

 

Camden County Pollution Control Financing Authority,
RB, AMT:

 

 

 

 

 

 

 

Series A, 7.50%, 12/01/10

 

 

7,250

 

 

7,251,160

 

Series B, 7.50%, 12/01/09

 

 

125

 

 

124,969

 

New Jersey EDA, RB, AMT:

 

 

 

 

 

 

 

Cigarette Tax, 5.50%, 6/15/24

 

 

3,065

 

 

2,925,543

 

Continental Airlines Inc. Project, 6.25%, 9/15/19

 

 

2,000

 

 

1,803,040

 

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

 

 

3,330

 

 

2,845,252

 

Continental Airlines Inc. Project, 9.00%, 6/01/33

 

 

1,250

 

 

1,304,700

 


 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

19




 

 


 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

 

Value

 









New Jersey (concluded)

 

 

 

 

 

 

 

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

 

$

2,500

 

$

2,460,475

 

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

 

 

2,510

 

 

2,826,135

 

New Jersey Health Care Facilities Financing Authority, RB:

 

 

 

 

 

 

 

Pascack Valley Hospital Association,
6.63%, 7/01/36 (a)(b)

 

 

2,000

 

 

200

 

Saint Josephs Healthcare System, 6.63%, 7/01/38

 

 

2,410

 

 

2,438,992

 

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

 

 

3,450

 

 

673,164

 

 

 

 

 

 




 

 

 

 

 

 

24,653,630

 









New Mexico — 1.0%

 

 

 

 

 

 

 

Farmington, New Mexico, RB, Tucson Electric Power Co.
San Juan, Series A, 6.95%, 10/01/20

 

 

2,500

 

 

2,501,875

 









New York — 4.2%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,360,912

 

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

 

 

3,685

 

 

4,177,648

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

1,045

 

 

1,047,592

 

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

 

 

2,400

 

 

2,243,712

 

Series C, 6.80%, 6/01/28

 

 

510

 

 

530,512

 

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

 

 

1,515

 

 

1,341,381

 

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

 

 

870

 

 

87

 

 

 

 

 

 




 

 

 

 

 

 

10,701,844

 









North Carolina — 1.5%

 

 

 

 

 

 

 

North Carolina Medical Care Commission, North Carolina,
RB, First Mortgage, Givens Estates Project, Series A,
6.50%, 7/01/13 (c)

 

 

1,250

 

 

1,477,225

 

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

 

 

2,335

 

 

2,265,767

 

 

 

 

 

 




 

 

 

 

 

 

3,742,992

 









Ohio — 2.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Turbo, Series A-2, 5.13%, 6/01/24

 

 

2,270

 

 

2,013,853

 

Turbo, Series A-2, 6.50%, 6/01/47

 

 

3,935

 

 

3,169,957

 

Ohio Air Quality Development Authority, RB, Ohio Valley
Electric Corp., 5.63%, 10/01/19

 

 

1,765

 

 

1,759,740

 

 

 

 

 

 




 

 

 

 

 

 

6,943,550

 









Pennsylvania — 10.0%

 

 

 

 

 

 

 

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

 

 

3,015

 

 

2,317,630

 

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

 

 

 

 

 

 

 

6.13%, 1/01/25

 

 

200

 

 

177,794

 

6.25%, 1/01/35

 

 

1,550

 

 

1,286,670

 

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

 

 

 

 

 

 

 

6.25%, 7/01/26

 

 

685

 

 

641,859

 

6.50%, 7/01/40

 

 

590

 

 

526,540

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Pennsylvania (concluded)

 

 

 

 

 

 

 

Lycoming County Authority, Refunding RB, Susquehanna
Health System Project, Series A, 5.75%, 7/01/39

 

$

2,310

 

$

2,196,487

 

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

 

 

2,330

 

 

1,677,530

 

Pennsylvania Economic Development Financing
Authority, RB, AMT:

 

 

 

 

 

 

 

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

 

 

3,250

 

 

2,057,900

 

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

 

 

2,040

 

 

2,082,575

 

Pennsylvania Higher Educational Facilities Authority, RB,
Allegheny Delaware Valley Obligation, Series A (MBIA),
5.88%, 11/15/16

 

 

2,410

 

 

2,133,212

 

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

 

 

3,035

 

 

2,429,851

 

Philadelphia Authority for Industrial Development,
RB, AMT:

 

 

 

 

 

 

 

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

 

 

2,270

 

 

2,004,387

 

Commercial Development, 7.75%, 12/01/17

 

 

6,440

 

 

5,982,309

 

 

 

 

 

 




 

 

 

 

 

 

25,514,744

 









Puerto Rico — 2.0%

 

 

 

 

 

 

 

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

 

 

3,425

 

 

3,312,078

 

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

 

 

1,650

 

 

1,784,475

 

 

 

 

 

 




 

 

 

 

 

 

5,096,553

 









Rhode Island — 0.8%

 

 

 

 

 

 

 

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

 

 

2,495

 

 

2,117,232

 









South Carolina — 0.7%

 

 

 

 

 

 

 

Connector 2000 Association Inc., RB, CAB, Senior,
Series B, 9.02%, 1/01/14 (e)

 

 

1,485

 

 

443,495

 

South Carolina Jobs Economic Development Authority,
Refunding RB, Palmetto Health:

 

 

 

 

 

 

 

5.50%, 8/01/26

 

 

975

 

 

963,359

 

5.75%, 8/01/39

 

 

390

 

 

379,669

 

 

 

 

 

 




 

 

 

 

 

 

1,786,523

 









South Dakota — 0.5%

 

 

 

 

 

 

 

South Dakota Health & Educational Facilities Authority,
South Dakota, RB, Sanford Health, 5.50%, 11/01/40

 

 

1,175

 

 

1,193,976

 









Tennessee — 0.5%

 

 

 

 

 

 

 

Knox County Health Educational & Housing Facilities
Board, Tennessee, RB, Refunding & Improvement,
Covenant Health, Series A, 5.06%, 1/01/40 (e)

 

 

6,785

 

 

928,866

 

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

 

 

355

 

 

293,266

 

 

 

 

 

 




 

 

 

 

 

 

1,222,132

 









Texas — 6.5%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, AMT:

 

 

 

 

 

 

 

TXU Electric Co. Project, Series C, 5.75%, 5/01/36

 

 

2,885

 

 

2,598,375

 

Texas Utility Co., Series A, 7.70%, 4/01/33

 

 

2,550

 

 

1,481,805

 

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

 

 

2,685

 

 

2,492,459

 

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

 

 

1,500

 

 

1,678,080

 


 

 

 

See Notes to Financial Statements.

 




20

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

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

 

$

860

 

$

852,174

 

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

 

 

1,240

 

 

1,327,470

 

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

 

 

2,775

 

 

2,882,060

 

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

 

 

2,490

 

 

2,407,108

 

Texas State Public Finance Authority, RB, Kipp Inc.
Education, Series A (ACA), 5.00%, 2/15/28

 

 

1,000

 

 

857,000

 

 

 

 

 

 




 

 

 

 

 

 

16,576,531

 









U.S. Virgin Islands — 1.4%

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,044,130

 

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

 

 

500

 

 

474,720

 

 

 

 

 

 




 

 

 

 

 

 

3,518,850

 









Utah — 0.7%

 

 

 

 

 

 

 

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

 

 

1,660

 

 

1,662,191

 









Virginia — 1.4%

 

 

 

 

 

 

 

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

 

 

1,435

 

 

1,331,049

 

Fairfax County EDA, RB, Goodwin House Inc.:

 

 

 

 

 

 

 

5.13%, 10/01/37

 

 

750

 

 

646,222

 

5.13%, 10/01/42

 

 

450

 

 

380,205

 

Lexington IDA, RB, Mortgage, Kendal at Lexington,
Series A, 5.38%, 1/01/28

 

 

540

 

 

431,725

 

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

 

 

1,320

 

 

899,224

 

 

 

 

 

 




 

 

 

 

 

 

3,688,425

 









Wisconsin — 1.0%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority,
RB, Series A:

 

 

 

 

 

 

 

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

 

 

1,855

 

 

1,734,332

 

Saint Johns Communities, Inc., 7.25%, 9/15/29

 

 

250

 

 

251,107

 

Saint Johns Communities, Inc., 7.63%, 9/15/39

 

 

505

 

 

512,514

 

 

 

 

 

 




 

 

 

 

 

 

2,497,953

 









Wyoming — 2.5%

 

 

 

 

 

 

 

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

 

 

3,600

 

 

3,357,360

 

Wyoming Municipal Power Agency, Wyoming, RB,
Series A, 5.38%, 1/01/42

 

 

3,030

 

 

3,056,664

 

 

 

 

 

 




 

 

 

 

 

 

6,414,024

 









Total Municipal Bonds — 94.7%

 

 

 

 

 

241,265,496

 










 

 

 

 

 

 

 

 

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

 

$

3,951

 

$

4,415,680

 









Florida — 3.4%

 

 

 

 

 

 

 

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

 

 

8,870

 

 

8,645,589

 









Virginia — 3.5%

 

 

 

 

 

 

 

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

 

 

8,690

 

 

8,760,302

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 8.6%

 

 

 

 

 

21,821,571

 









Total Long-Term Investments
(Cost — $278,874,869) — 103.3%

 

 

 

 

 

263,087,067

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.23% (i)(j)

 

 

1,000,079

 

 

1,000,079

 









Total Short-Term Securities
(Cost — $1,000,079) — 0.4%

 

 

 

 

 

1,000,079

 









Total Investments (Cost — $279,874,948*) — 103.7%

 

 

 

 

 

264,087,146

 

Other Assets Less Liabilities — 0.5%

 

 

 

 

 

1,393,402

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (4.2)%

 

 

 

 

 

(10,764,690

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

254,715,858

 

 

 

 

 

 




 

 

 

 

 

 

 

 










 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

268,655,317

 

 

 




Gross unrealized appreciation

 

$

10,759,278

 

Gross unrealized depreciation

 

 

(26,083,095

)

 

 




Net unrealized depreciation

 

$

(15,323,817

)

 

 





 

 

(a)

Non-income producing security.

 

 

(b)

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

 

 

(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)

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.

 

 

(e)

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

 

 

(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 and is subject to mandatory redemption.


 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

21




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

(g)

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


 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Depreciation

 









B.G. Ziegler

 

$

2,456,653

 

$

(13,846

)

First Southwest

 

$

99,090

 

$

(550

)

RBC Capital

 

$

703,539

 

$

(3,905

)










 

 

(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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 









FFI Institutional Tax-Exempt Fund

 

$

(1,001,455

)

$

2,096

 










 

 

 

(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 methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of October 31, 2009 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 





Valuation Inputs

 

Investments in
Securities





 

 

Assets

 

 




Level 1 — Short-Term Securities

 

$

1,000,079

 

Level 2 — Long-Term Investments1

 

 

263,087,067

 

Level 3

 

 

 

 

 




Total

 

$

264,087,146

 

 

 





 

 

 

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


 

 

 

See Notes to Financial Statements.

 




22

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

Schedule of Investments October 31, 2009 (Unaudited)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







Alabama — 1.6%

 

 

 

 

 

 

 

Alabama Public School & College Authority,
Refunding RB, Series A, 5.00%, 5/01/29

 

$

900

 

$

923,274

 

County of Jefferson, Alabama, RB, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/22

 

 

2,750

 

 

2,289,650

 

4.75%, 1/01/25

 

 

2,200

 

 

1,650,286

 

 

 

 

 

 




 

 

 

 

 

 

4,863,210

 









Alaska — 0.5%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,379,808

 









California — 23.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.55%, 10/01/24

 

 

10,185

 

 

7,774,618

 

5.49%, 10/01/25

 

 

6,000

 

 

4,541,820

 

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

 

 

5,000

 

 

5,570,100

 

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

 

 

600

 

 

618,828

 

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

 

 

1,600

 

 

246,032

 

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

 

 

2,400

 

 

413,832

 

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

 

 

550

 

 

570,180

 

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

 

 

2,600

 

 

2,494,128

 

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

 

 

850

 

 

857,905

 

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

 

 

1,720

 

 

1,746,316

 

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

 

 

900

 

 

910,215

 

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

 

 

5,160

 

 

5,289,103

 

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

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

2,965

 

 

3,047,634

 

5.00%, 10/01/36

 

 

1,655

 

 

1,678,435

 

Norco Redevelopment Agency, California, TAN,
Refunding, Project Area No. 1 (MBIA),
5.13%, 3/01/30

 

 

5,000

 

 

4,696,150

 

Orange County Sanitation District, COP:

 

 

 

 

 

 

 

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

 

 

7,455

 

 

7,548,486

 

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

 

 

1,500

 

 

1,553,385

 

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

 

 

900

 

 

927,522

 

Poway Redevelopment Agency, California, TAN, Paguay
Redevelopment Project (AMBAC), 5.13%, 6/15/33

 

 

1,750

 

 

1,524,005

 

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

 

 

4,150

 

 

4,168,011

 

San Mateo County Community College District, GO,
CAB, Election of 2001, Series C (MBIA),
5.54%, 9/01/30 (b)

 

 

12,740

 

 

4,008,004

 

State of California, GO:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

20

 

 

19,988

 

5.13%, 6/01/31

 

 

60

 

 

57,983

 

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

 

 

6,145

 

 

6,040,289

 

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

 

 

2,325

 

 

2,386,752

 

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

 

 

5,035

 

 

5,113,093

 

 

 

 

 

 




 

 

 

 

 

 

73,802,814

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







Colorado — 1.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.50%, 12/01/27

 

$

1,200

 

$

1,102,020

 

5.50%, 12/01/33

 

 

675

 

 

592,616

 

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

 

 

900

 

 

916,821

 

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

 

 

415

 

 

443,955

 

 

 

 

 

 




 

 

 

 

 

 

3,055,412

 









District of Columbia — 2.8%

 

 

 

 

 

 

 

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

 

 

9,600

 

 

8,711,424

 









Florida — 10.2%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,634,528

 

City of Miami, Florida, RB, Miami Revenues (MBIA),
5.00%, 1/01/37

 

 

320

 

 

311,628

 

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

 

 

3,000

 

 

3,065,520

 

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

 

 

850

 

 

877,455

 

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

 

 

3,000

 

 

2,999,790

 

County of Miami-Dade, Florida:

 

 

 

 

 

 

 

GO, Building Better Community Program,
Series B-1, 5.75%, 7/01/33

 

 

1,400

 

 

1,492,288

 

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

 

 

9,900

 

 

9,259,569

 

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

 

 

4,200

 

 

4,227,132

 

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

 

 

1,750

 

 

1,755,443

 

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

 

 

 

 

 

 

 

5.25%, 5/01/31

 

 

1,800

 

 

1,848,420

 

5.00%, 5/01/33

 

 

2,000

 

 

2,004,120

 

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

 

 

275

 

 

278,971

 

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

 

 

2,000

 

 

2,111,740

 

 

 

 

 

 




 

 

 

 

 

 

31,866,604

 









Georgia — 3.7%

 

 

 

 

 

 

 

City of Augusta, Georgia, RB (FSA), 5.25%, 10/01/39

 

 

2,300

 

 

2,372,197

 

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

 

 

7,475

 

 

9,195,297

 

 

 

 

 

 




 

 

 

 

 

 

11,567,494

 









Illinois — 18.6%

 

 

 

 

 

 

 

Chicago Board of Education, Illinois, GO, Chicago
School Reform Board, Series A (MBIA),
5.50%, 12/01/26

 

 

1,000

 

 

1,094,440

 

City of Chicago, Illinois:

 

 

 

 

 

 

 

GO, Refunding, Series A (FSA), 5.00%, 1/01/25

 

 

1,500

 

 

1,565,370

 

RB, General Airport, Third Lien, Series B-2, AMT
(FSA), 5.75%, 1/01/23

 

 

5,670

 

 

5,823,544

 

RB, General Airport, Third Lien, Series B-2, AMT
(Syncora), 6.00%, 1/01/29

 

 

2,300

 

 

2,355,016

 

RB, Project, Series A (AGC), 5.00%, 1/01/38

 

 

2,000

 

 

2,038,820

 

Refunding RB, General Airport, Third Lien, Series A,
AMT (MBIA), 5.75%, 1/01/21

 

 

9,000

 

 

9,125,370

 

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

 

 

2,460

 

 

2,775,790

 


 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

23




 

 



 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







Illinois (concluded)

 

 

 

 

 

 

 

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

 

$

1,000

 

$

1,018,020

 

Illinois Sports Facilities Authority, RB, State Tax
Supported (AMBAC), 5.48%, 6/15/30 (a)

 

20,120

 

 

19,648,588

 

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

 

10,115

 

 

12,361,541

 

 

 

 

 




 

 

 

 

 

 

57,806,499

 









Indiana — 0.1%

 

 

 

 

 

 

 

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

 

400

 

 

410,680

 








Iowa — 1.3%

 

 

 

 

 

 

 

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

 

3,850

 

 

3,962,073

 








Louisiana — 1.8%

 

 

 

 

 

 

 

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

 

1,250

 

 

1,387,425

 

Louisiana State Gas and Fuels Tax Revenue Bonds,
Series A, 5.00%, 5/01/35

 

1,740

 

 

1,735,024

 

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

 

1,235

 

 

471,955

 

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

 

2,450

 

 

2,061,136

 

 

 

 

 




 

 

 

 

 

 

5,655,540

 









Maryland — 1.5%

 

 

 

 

 

 

 

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

 

4,430

 

 

4,551,781

 








Massachusetts — 7.4%

 

 

 

 

 

 

 

Massachusetts HFA, Massachusetts, AMT, RB:

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,026,700

 

Rental Mortgage, Series F (FSA), 5.25%, 1/01/46

 

 

5,300

 

 

5,116,673

 

Massachusetts Housing Finance Agency,
Massachusetts, RB, S/F Housing, Series 128, AMT
(FSA), 4.80%, 12/01/27

 

1,600

 

 

1,545,504

 

Massachusetts Port Authority, RB, Delta Air Lines Inc.
Project, Series A, AMT (AMBAC):

 

 

 

 

 

 

5.50%, 1/01/16

 

 

3,100

 

 

2,667,395

 

5.50%, 1/01/18

 

 

4,000

 

 

3,288,520

 

5.50%, 1/01/19

 

 

2,775

 

 

2,240,313

 

Massachusetts State Water Resource Authority,
Refunding RB, General, Series A (MBIA),
5.00%, 8/01/34

 

2,700

 

 

2,776,653

 

Massachusetts Water Resources Authority, Refunding
RB, General, Series B (FSA), 5.25%, 8/01/28

 

2,000

 

 

2,273,340

 

 

 

 

 




 

 

 

 

 

 

22,935,098

 









Michigan — 5.0%

 

 

 

 

 

 

 

City of Detroit, Michigan, RB, Second Lien:

 

 

 

 

 

 

 

Series B (FSA), 7.50%, 7/01/33

 

 

700

 

 

864,360

 

Series B (FSA), 6.25%, 7/01/36

 

 

400

 

 

430,308

 

Series B (FSA), 7.00%, 7/01/36

 

 

200

 

 

234,718

 

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

 

 

2,500

 

 

2,686,825

 

City of Detroit, Michigan, RB, System, Second Lien,
Series B (MBIA), 5.00%, 7/01/36

 

3,600

 

 

3,260,916

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







Michigan (concluded)

 

 

 

 

 

 

 

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

 

$

1,500

 

$

1,500,285

 

Michigan Strategic Fund, Refunding, AMT (Syncora), RB:

 

 

 

 

 

 

 

Detroit Edison Co. Project, Series A,
5.50%, 6/01/30

 

1,300

 

 

1,217,840

 

Detroit Edison Co. Project, Series C,
5.45%, 12/15/32

 

4,300

 

 

3,980,682

 

Detroit Edison Poll, Series C, 5.65%, 9/01/29

 

 

1,410

 

 

1,378,642

 

 

 

 

 

 




 

 

 

 

 

 

15,554,576

 









Minnesota — 0.9%

 

 

 

 

 

 

 

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

 

2,500

 

 

2,814,575

 

Dakota County Community Development Agency, RB,
Mortgage Backed Securities Program, Series B, AMT
(GNMA), 5.15%, 12/01/38

 

123

 

 

124,299

 

 

 

 

 




 

 

 

 

 

 

2,938,874

 









Nebraska — 0.5%

 

 

 

 

 

 

 

County of Washington, Nebraska, RB, Cargill Inc.
Project, AMT, 5.90%, 11/01/27

 

1,600

 

 

1,617,856

 








Nevada — 4.1%

 

 

 

 

 

 

 

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

 

3,100

 

 

2,795,797

 

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

 

850

 

 

927,197

 

County of Clark, Nevada, RB, Southwest Gas
Corp. Project, AMT:

 

 

 

 

 

 

Series A (FGIC), 4.75%, 9/01/36

 

 

75

 

 

61,790

 

Series D (MBIA), 5.25%, 3/01/38

 

 

1,300

 

 

1,153,334

 

County of Clark, Nevada, RB, Subordinate Lien,
Series A-2 (MBIA):

 

 

 

 

 

 

5.00%, 7/01/30

 

 

1,500

 

 

1,508,580

 

5.00%, 7/01/36

 

 

3,200

 

 

3,135,136

 

County of Clark, Nevada, RB, System Subordinate Lien,
Series C (FSA), 5.00%, 7/01/26

 

1,475

 

 

1,508,969

 

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

 

1,600

 

 

1,655,040

 

 

 

 

 




 

 

 

 

 

 

12,745,843

 









New Jersey — 8.2%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax (Radian):

 

 

 

 

 

 

 

5.50%, 6/15/31

 

 

600

 

 

556,350

 

5.75%, 6/15/34

 

 

305

 

 

289,973

 

New Jersey EDA, RB, Motor Vehicle Surcharge,
Series A (MBIA):

 

 

 

 

 

 

5.25%, 7/01/31

 

 

9,325

 

 

9,439,697

 

5.25%, 7/01/33

 

 

7,800

 

 

7,870,044

 

New Jersey EDA, RB, School Facilities Construction:

 

 

 

 

 

 

 

Series O, 5.13%, 3/01/28

 

 

3,960

 

 

4,089,294

 

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

 

 

2,000

 

 

2,234,260

 

New Jersey EDA, Refunding RB, School Facilities
Construction, Series N-1 (MBIA), 5.50%, 9/01/28

 

815

 

 

899,083

 

 

 

 

 




 

 

 

 

 

 

25,378,701

 










 

 

 

See Notes to Financial Statements.

 




24

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









New York — 3.8%

 

 

 

 

 

 

 

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

 

$

1,500

 

$

1,598,610

 

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

 

4,000

 

 

4,534,760

 

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

 

2,750

 

 

2,938,155

 

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

 

1,200

 

 

1,325,232

 

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

 

1,300

 

 

1,373,723

 

 

 

 

 




 

 

 

 

 

 

11,770,480

 









Ohio — 0.5%

 

 

 

 

 

 

 

County of Montgomery, Ohio, Refunding RB, Catholic
Healthcare, Series A, 5.00%, 5/01/39 (c)

 

1,550

 

 

1,465,572

 








Oregon — 0.5%

 

 

 

 

 

 

 

Oregon State Housing & Community Services
Department, RB, S/F Mortgage Program, Series G,
AMT, 5.50%, 1/01/38

 

1,595

 

 

1,624,061

 








Pennsylvania — 1.2%

 

 

 

 

 

 

 

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

 

1,500

 

 

1,501,650

 

Pennsylvania Turnpike Commission, RB, CAB,
Sub-Series E, 6.37%, 12/01/38 (a)

 

3,000

 

 

1,865,970

 

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

 

400

 

 

432,112

 

 

 

 

 




 

 

 

 

 

 

3,799,732

 









Puerto Rico — 1.5%

 

 

 

 

 

 

 

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

 

3,200

 

 

3,451,456

 

Puerto Rico Sales Tax Financing Corp., RB, CAB,
Series A (MBIA), 5.72%, 8/01/41 (b)

 

8,500

 

 

1,302,285

 

 

 

 

 




 

 

 

 

 

 

4,753,741

 









Rhode Island — 2.6%

 

 

 

 

 

 

 

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

 

4,345

 

 

4,672,830

 

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

 

3,355

 

 

3,520,905

 

 

 

 

 




 

 

 

 

 

 

8,193,735

 









South Carolina — 1.2%

 

 

 

 

 

 

 

Berkeley County School District, RB, Securing Assets
For Education, 5.13%, 12/01/30

 

3,800

 

 

3,859,584

 








Tennessee — 1.9%

 

 

 

 

 

 

 

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

 

1,100

 

 

171,523

 

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

 

5,000

 

 

5,613,300

 

 

 

 

 




 

 

 

 

 

 

5,784,823

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Texas — 14.7%

 

 

 

 

 

 

 

City of Houston, Texas, Refunding RB:

 

 

 

 

 

 

 

Combined, First Lien, Series A (AGC),
6.00%, 11/15/35

 

$

2,100

 

$

2,387,196

 

First Lien, Series A (AGC), 5.38%, 11/15/38

 

 

1,350

 

 

1,426,842

 

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

 

13,000

 

 

12,965,680

 

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

 

4,475

 

 

2,139,050

 

Mansfield ISD, Texas, GO, School Building,
5.00%, 2/15/33

 

1,725

 

 

1,791,033

 

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

 

2,400

 

 

2,255,976

 

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

 

2,895

 

 

2,926,642

 

North Texas Tollway Authority, Refunding RB, First Tier:

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,614,384

 

K-2 (AGC), 6.00%, 1/01/38

 

 

4,015

 

 

4,350,092

 

Series A, 6.00%, 1/01/28

 

 

2,795

 

 

2,941,626

 

Series K-1 (AGC), 5.75%, 1/01/38

 

 

3,800

 

 

4,024,466

 

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

 

7,150

 

 

7,040,176

 

 

 

 

 




 

 

 

 

 

 

45,863,163

 









Utah — 1.7%

 

 

 

 

 

 

 

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

 

5,000

 

 

5,155,200

 








Vermont — 0.9%

 

 

 

 

 

 

 

Vermont HFA, Vermont, RB, Series 27, AMT (FSA),
4.85%, 11/01/32

 

3,000

 

 

2,848,500

 








Washington — 0.0%

 

 

 

 

 

 

 

Port of Tacoma, Washington, GO, Series B, AMT (AGC),
4.88%, 12/01/38

 

130

 

 

123,882

 








Wisconsin — 1.1%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, RB,
Ascension Health Senior Credit (FSA),
5.00%, 11/15/31

 

1,300

 

 

1,318,447

 

Wisconsin Housing & Economic Development Authority,
Wisconsin, RB, Series E, AMT, 5.50%, 9/01/38

 

2,000

 

 

2,017,980

 

 

 

 

 




 

 

 

 

 

 

3,336,427

 









Total Municipal Bonds — 124.5%

 

 

 

 

 

387,383,187

 









 

 

 

 

 

 

 

 









 

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

 

 

1,237,056

 








California — 3.0%

 

 

 

 

 

 

 

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

 

959

 

 

969,061

 

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

 

2,500

 

 

2,566,050

 

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

 

404

 

 

423,955

 


 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

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

 









California (concluded)

 

 

 

 

 

 

 

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

 

$

2,810

 

$

2,815,789

 

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

 

1,605

 

 

1,645,302

 

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

 

 

840

 

 

928,948

 

 

 

 

 

 




 

 

 

 

 

 

9,349,105

 









District of Columbia — 1.0%

 

 

 

 

 

 

 

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

 

 

1,005

 

 

1,106,274

 

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

 

1,770

 

 

1,978,671

 

 

 

 

 




 

 

 

 

 

 

3,084,945

 









Florida — 6.1%

 

 

 

 

 

 

 

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

 

7,500

 

 

7,558,200

 

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

 

1,349

 

 

1,382,474

 

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

 

10,000

 

 

10,020,600

 

 

 

 

 




 

 

 

 

 

 

18,961,274

 









Georgia — 5.7%

 

 

 

 

 

 

 

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

 

17,356

 

 

17,685,430

 








Illinois — 1.3%

 

 

 

 

 

 

 

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

 

1,880

 

 

2,009,526

 

Metropolitan Pier & Exposition Authority, Illinois,
Refunding RB, McCormick Place Expansion, Series B
(MBIA), 5.75%, 6/15/23

 

1,999

 

 

2,159,787

 

 

 

 

 




 

 

 

 

 

 

4,169,313

 









Louisiana — 1.8%

 

 

 

 

 

 

 

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

 

 

5,400

 

 

5,450,706

 









Massachusetts — 3.5%

 

 

 

 

 

 

 

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

 

10,600

 

 

10,948,377

 








Nevada — 3.5%

 

 

 

 

 

 

 

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

 

3,778

 

 

4,093,574

 

Clark County Water Reclamation District, GO, Series B:

 

 

 

 

 

 

 

5.50%, 7/01/29

 

 

4,499

 

 

4,888,415

 

5.75%, 7/01/34

 

 

1,829

 

 

1,989,024

 

 

 

 

 

 




 

 

 

 

 

 

10,971,013

 









New Hampshire — 2.4%

 

 

 

 

 

 

 

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

 

7,390

 

 

7,525,163

 








New Jersey — 1.3%

 

 

 

 

 

 

 

New Jersey Economic Development Authority, RB,
Cigarette Tax (AGC), 5.50%, 6/15/24

 

3,850

 

 

3,990,409

 








New York — 0.4%

 

 

 

 

 

 

 

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

 

1,260

 

 

1,389,261

 








Ohio — 0.2%

 

 

 

 

 

 

 

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

 

580

 

 

601,077

 









 

 

 

 

 

 

 

 

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

 

$

3,229,824

 

5.25%, 12/01/29

 

 

2,765

 

 

2,850,466

 

5.25%, 12/01/30

 

 

1,010

 

 

1,035,300

 

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

 

 

1,275

 

 

1,361,942

 

 

 

 

 

 




 

 

 

 

 

 

8,477,532

 









Texas — 0.8%

 

 

 

 

 

 

 

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

 

2,200

 

 

2,326,324

 








Virginia — 0.9%

 

 

 

 

 

 

 

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

 

350

 

 

367,231

 

Virginia Housing Development Authority, RB, Sub-Series
H-1 (MBIA), 5.35%, 7/01/31

 

2,310

 

 

2,334,047

 

 

 

 

 




 

 

 

 

 

 

2,701,278

 









Washington — 1.3%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation Authority,
Washington, RB, Series A (FSA), 5.00%, 11/01/32

 

4,004

 

 

4,132,074

 








Wisconsin — 0.5%

 

 

 

 

 

 

 

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

 

1,430

 

 

1,404,524

 








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

 

 

 

 

 

114,404,861

 









Total Long-Term Investments
(Cost — $501,806,524) — 161.3%

 

 

 

 

 

501,788,048

 









 

 

 

 

 

 

 

 









 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.23% (f)(g)

 

 

6,901,879

 

 

6,901,879

 









Total Short-Term Securities
(Cost — $6,901,879) — 2.2%

 

 

 

 

 

6,901,879

 









Total Investments (Cost — $508,708,403*) — 163.5%

 

 

 

 

 

508,689,927

 

Other Assets Less Liabilities — 1.7%

 

 

 

 

 

5,222,550

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (19.4)%

 

 

 

 

 

(60,258,646

)

Preferred Shares, at Redemption Value — (45.8)%

 

 

 

 

 

(142,603,549

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

311,050,282

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.

 




26

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniEnhanced Fund, Inc. (MEN)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

448,707,922

 

 

 




Gross unrealized appreciation

 

$

17,444,918

 

Gross unrealized depreciation

 

 

(17,632,205

)

 

 




Net unrealized depreciation

 

$

(187,287

)

 

 




 

 

 

(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)

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

 

 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Depreciation

 







Citigroup NA

 

$

945,530

 

$

(6,577

)

Morgan Stanley Capital Services, Inc.

 

$

1,436,863

 

$

(10,430

)









 

 

 

(d)

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

 

 

(e)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired the 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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







FFI Institutional Tax-Exempt Fund

 

$

3,599,386

 

$

14,453

 









 

 

 

 

(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 methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of October 31, 2009 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

6,901,879

 

Level 2 — Long-Term Investments1

 

 

501,788,048

 

Level 3

 

 

 

 

 




Total

 

$

508,689,927

 

 

 




 

 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

27




 

 



 

 

Schedule of Investments October 31, 2009 (Unaudited)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







Alabama — 2.7%

 

 

 

 

 

 

 

Camden Industrial Development Board, Alabama,
Refunding RB, Weyerhaeuser, Series A, 6.13%,
12/01/13 (a)

 

$

1,750

 

$

2,034,533

 

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

 

 

4,550

 

 

3,672,350

 

 

 

 

 

 




 

 

 

 

 

 

5,706,883

 









Arizona — 4.6%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

963,140

 

Maricopa County IDA, Arizona, RB, Arizona Charter
Schools Project 1, Series A:

 

 

 

 

 

 

 

6.50%, 7/01/12

 

 

200

 

 

182,684

 

6.75%, 7/01/29

 

 

2,200

 

 

1,499,938

 

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

 

 

2,215

 

 

1,463,495

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

3,505

 

 

3,134,171

 

5.00%, 12/01/37

 

 

2,360

 

 

2,007,416

 

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

 

 

365

 

 

360,470

 

 

 

 

 

 




 

 

 

 

 

 

9,611,314

 









California — 17.3%

 

 

 

 

 

 

 

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

 

 

680

 

 

651,630

 

California Health Facilities Financing Authority, RB:

 

 

 

 

 

 

 

Cedars-Sinai Medical Center, 5.00%, 8/15/39

 

 

1,290

 

 

1,199,468

 

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

 

 

1,530

 

 

1,586,136

 

California State Public Works Board, RB, Department
Corrections, Series C, 5.25%, 6/01/28

 

 

3,145

 

 

2,973,566

 

California Statewide Communities Development
Authority, RB:

 

 

 

 

 

 

 

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

 

 

3,870

 

 

4,010,984

 

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

 

 

1,510

 

 

1,450,974

 

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

 

 

 

 

 

 

 

5.62%, 8/01/22

 

 

2,405

 

 

1,200,528

 

5.61%, 8/01/23

 

 

2,455

 

 

1,138,359

 

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

 

 

3,475

 

 

1,120,027

 

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

 

 

6,600

 

 

6,698,670

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

5.00%, 6/01/32

 

 

2,455

 

 

2,312,365

 

6.50%, 4/01/33

 

 

8,370

 

 

9,250,608

 

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

 

 

2,615

 

 

2,611,287

 

 

 

 

 

 




 

 

 

 

 

 

36,204,602

 









Colorado — 4.4%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Refunding RB,
Catholic Healthcare, Series A (c):

 

 

 

 

 

 

 

5.50%, 7/01/34

 

 

1,485

 

 

1,512,755

 

5.00%, 7/01/39

 

 

1,755

 

 

1,651,613

 

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

 

 

2,645

 

 

2,387,959

 

Platte River Power Authority, Colorado, RB, Series HH:

 

 

 

 

 

 

 

5.00%, 6/01/27

 

 

870

 

 

931,518

 

5.00%, 6/01/28

 

 

395

 

 

420,675

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Colorado (concluded)

 

 

 

 

 

 

 

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

 

$

1,000

 

$

928,630

 

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

 

 

1,250

 

 

1,315,450

 

 

 

 

 

 




 

 

 

 

 

 

9,148,600

 









Connecticut — 1.2%

 

 

 

 

 

 

 

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

 

 

2,735

 

 

2,495,304

 









District of Columbia — 1.9%

 

 

 

 

 

 

 

Metropolitan Washington DC Airports Authority Dulles
Toll Road Revenue, RB:

 

 

 

 

 

 

 

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

 

 

505

 

 

504,434

 

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

 

 

790

 

 

809,924

 

Series 2nd Senior Lien-B (AGC), 7.10%,
10/01/35 (b)

 

 

13,485

 

 

2,674,615

 

 

 

 

 

 




 

 

 

 

 

 

3,988,973

 









Florida — 8.3%

 

 

 

 

 

 

 

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

 

 

1,195

 

 

1,221,326

 

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

 

 

750

 

 

774,225

 

County of Miami-Dade, Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (MBIA), 5.65%, 10/01/37 (b)

 

 

2,340

 

 

343,395

 

Miami International Airport, Series A, AMT (AGC),
5.25%, 10/01/38

 

 

1,795

 

 

1,750,610

 

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

 

 

2,095

 

 

1,694,729

 

Hillsborough County IDA, RB:

 

 

 

 

 

 

 

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

 

 

3,190

 

 

2,920,764

 

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

 

 

1,900

 

 

1,310,183

 

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

 

 

2,495

 

 

2,076,514

 

Orange County Health Facilities Authority, RB, Hospital,
Orlando Regional Healthcare, 6.00%, 12/01/12 (a)

 

 

3,225

 

 

3,684,433

 

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

 

 

695

 

 

403,809

 

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

 

 

1,560

 

 

1,230,793

 

 

 

 

 

 




 

 

 

 

 

 

17,410,781

 









Georgia — 3.2%

 

 

 

 

 

 

 

City of Atlanta, Georgia, TAN, Refunding, Atlantic Station
Project (AGC):

 

 

 

 

 

 

 

5.25%, 12/01/20

 

 

1,000

 

 

1,080,290

 

5.25%, 12/01/21

 

 

1,950

 

 

2,094,066

 

5.25%, 12/01/22

 

 

950

 

 

1,010,059

 

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

 

 

2,410

 

 

2,461,743

 

 

 

 

 

 




 

 

 

 

 

 

6,646,158

 









Guam — 1.0%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

440

 

 

458,168

 

6.75%, 11/15/29

 

 

770

 

 

823,854

 

7.00%, 11/15/39

 

 

800

 

 

864,672

 

 

 

 

 

 




 

 

 

 

 

 

2,146,694

 









 

 

 

 

See Notes to Financial Statements.

 




28

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Illinois — 2.5%

 

 

 

 

 

 

 

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

 

$

1,200

 

$

1,082,472

 

Illinois Finance Authority, RB, Monarch Landing Inc.
Facilities, Series A, 7.00%, 12/01/37

 

 

1,010

 

 

505,000

 

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

 

 

3,690

 

 

3,712,435

 

 

 

 

 

 




 

 

 

 

 

 

5,299,907

 









Indiana — 3.5%

 

 

 

 

 

 

 

County of Saint Joseph, RB, Notre Dame Du Lac Project,
5.00%, 3/01/36

 

 

1,570

 

 

1,638,389

 

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

 

 

2,300

 

 

2,342,113

 

Indiana Finance Authority, RB:

 

 

 

 

 

 

 

Refunding Duke Energy, Series C,
4.95%, 10/01/40

 

 

2,070

 

 

1,973,621

 

Sisters of Saint Francis Health, 5.25%,
11/01/39 (c)

 

 

585

 

 

566,970

 

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

 

 

775

 

 

831,381

 

 

 

 

 

 




 

 

 

 

 

 

7,352,474

 









Kansas — 1.2%

 

 

 

 

 

 

 

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

 

 

2,465

 

 

2,533,059

 









Kentucky — 1.0%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,095,540

 









Louisiana — 3.4%

 

 

 

 

 

 

 

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

 

 

3,500

 

 

3,354,470

 

Louisiana Public Facilities Authority, RB, Black & Gold
Facilities Project, Series A (CIFG), 5.00%, 7/01/39

 

 

3,815

 

 

3,203,684

 

Parish of East Baton Rouge, Louisiana, RB, Series A,
5.25%, 2/01/39

 

 

570

 

 

585,036

 

 

 

 

 

 




 

 

 

 

 

 

7,143,190

 









Maryland — 0.9%

 

 

 

 

 

 

 

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

 

 

1,970

 

 

1,970,414

 









Massachusetts — 1.9%

 

 

 

 

 

 

 

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

 

 

1,165

 

 

1,182,067

 

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

 

 

2,900

 

 

2,797,833

 

 

 

 

 

 




 

 

 

 

 

 

3,979,900

 









Michigan — 3.3%

 

 

 

 

 

 

 

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

 

 

635

 

 

784,098

 

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

 

 

1,310

 

 

1,205,134

 

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

 

 

2,105

 

 

2,017,958

 

Michigan Strategic Fund, Refunding RB, Detroit Edison
Poll Control, Series B, AMT, 5.65%, 9/01/29

 

 

3,000

 

 

2,964,510

 

 

 

 

 

 




 

 

 

 

 

 

6,971,700

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

 

Value

 









Minnesota — 1.2%

 

 

 

 

 

 

 

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

 

$

2,135

 

$

2,384,304

 









Mississippi — 2.5%

 

 

 

 

 

 

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project,
5.90%, 5/01/22

 

 

2,500

 

 

2,502,575

 

Mississippi Development Bank, Refunding RB,
Gulfport Water & Sewer System Project (FSA):

 

 

 

 

 

 

 

5.25%, 7/01/17

 

 

1,000

 

 

1,114,990

 

5.25%, 7/01/19

 

 

810

 

 

887,671

 

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

 

 

675

 

 

712,145

 

 

 

 

 

 




 

 

 

 

 

 

5,217,381

 









Missouri — 0.5%

 

 

 

 

 

 

 

Missouri Development Finance Board, Missouri, RB,
Branson, Series A, 5.50%, 12/01/32

 

 

1,000

 

 

964,500

 









New Hampshire — 1.5%

 

 

 

 

 

 

 

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

 

 

3,035

 

 

3,164,352

 









New Jersey — 7.2%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax, 5.75%, 6/15/29

 

 

5,385

 

 

5,182,524

 

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

 

 

 

 

 

 

 

6.63%, 9/15/12

 

 

1,000

 

 

979,510

 

6.25%, 9/15/29

 

 

2,950

 

 

2,520,568

 

New Jersey EDA, RB, Seabrook Village Inc., Series A,
8.25%, 11/15/10 (a)

 

 

2,600

 

 

2,831,634

 

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

 

 

3,500

 

 

3,618,825

 

 

 

 

 

 




 

 

 

 

 

 

15,133,061

 









New York — 5.2%

 

 

 

 

 

 

 

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

 

 

1,100

 

 

1,069,288

 

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

 

 

1,450

 

 

1,554,240

 

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

 

 

1,740

 

 

1,785,571

 

New York City Industrial Development Agency, RB,
Continental Airlines Inc., AMT:

 

 

 

 

 

 

 

8.00%, 11/01/12

 

 

420

 

 

355,824

 

8.38%, 11/01/16

 

 

725

 

 

534,600

 

New York City Industrial Development Agency, RB,
Series C, 6.80%, 6/01/28

 

 

535

 

 

556,518

 

Tobacco Settlement Financing Corp., New York, RB,
Series B-1C:

 

 

 

 

 

 

 

5.50%, 6/01/17

 

 

3,500

 

 

3,614,205

 

5.50%, 6/01/22

 

 

1,400

 

 

1,468,264

 

 

 

 

 

 




 

 

 

 

 

 

10,938,510

 









North Carolina — 1.8%

 

 

 

 

 

 

 

North Carolina Eastern Municipal Power Agency, North
Carolina, RB, Series B, 5.00%, 1/01/26

 

 

1,545

 

 

1,573,335

 

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

 

 

 

 

 

 

 

5.00%, 6/01/39

 

 

440

 

 

435,288

 

5.00%, 6/01/42

 

 

970

 

 

951,599

 

North Carolina Municipal Power Agency, RB, Number 1
Catawba, North Carolina, Series A, 5.00%, 1/01/30

 

 

740

 

 

746,453

 

 

 

 

 

 




 

 

 

 

 

 

3,706,675

 









 

 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

29




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Ohio — 1.6%

 

 

 

 

 

 

 

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

 

$

2,160

 

$

1,740,053

 

County of Montgomery, Ohio, Refunding RB, Catholic
Healthcare, Series A, 5.00%, 5/01/39 (c)

 

 

1,755

 

 

1,659,405

 

 

 

 

 

 




 

 

 

 

 

 

3,399,458

 









Pennsylvania — 9.6%

 

 

 

 

 

 

 

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

 

 

1,700

 

 

1,411,187

 

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

 

 

820

 

 

800,771

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,315

 

 

1,305,940

 

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

 

 

3,500

 

 

2,182,110

 

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

 

 

2,520

 

 

2,686,345

 

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

 

 

4,775

 

 

4,750,600

 

Philadelphia Authority for Industrial Development, RB:

 

 

 

 

 

 

 

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

 

 

1,105

 

 

1,002,478

 

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

 

 

725

 

 

673,474

 

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

 

 

1,245

 

 

1,129,489

 

Sayre Health Care Facilities Authority, RB, Guthrie
Health Issue, Series B, 7.13%, 12/01/11 (a)

 

 

3,500

 

 

4,209,205

 

 

 

 

 

 




 

 

 

 

 

 

20,151,599

 









Puerto Rico — 2.7%

 

 

 

 

 

 

 

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

 

 

2,060

 

 

1,538,841

 

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

 

 

3,860

 

 

4,174,590

 

 

 

 

 

 




 

 

 

 

 

 

5,713,431

 









South Dakota — 0.8%

 

 

 

 

 

 

 

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

 

 

1,825

 

 

1,744,773

 









Tennessee — 3.8%

 

 

 

 

 

 

 

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

 

 

2,685

 

 

2,686,423

 

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

 

 

3,410

 

 

3,183,064

 

Shelby County Health Educational & Housing Facilities
Board, RB, Methodist Healthcare, 6.50%, 9/01/12 (a)

 

 

1,845

 

 

2,116,990

 

 

 

 

 

 




 

 

 

 

 

 

7,986,477

 









Texas — 13.0%

 

 

 

 

 

 

 

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

 

 

2,660

 

 

2,395,729

 

Brazos River Harbor Navigation District, RB, Dow
Chemical Co. Project, Series A-7, AMT,
6.63%, 5/15/33

 

 

3,655

 

 

3,674,262

 

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

 

 

1,910

 

 

2,134,807

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

Houston, Texas, Airport Systems Revenue, Refunding
ARB, Senior Lien, Series A, 5.50%, 7/01/39

 

$

1,070

 

$

1,109,847

 

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

 

 

820

 

 

812,538

 

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

 

 

4,500

 

 

4,386,195

 

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

 

 

4,190

 

 

4,351,650

 

SA Energy Acquisition Public Facility Corp., RB, Gas
Supply Revenue:

 

 

 

 

 

 

 

5.50%, 8/01/23

 

 

2,425

 

 

2,471,730

 

5.50%, 8/01/24

 

 

1,100

 

 

1,110,989

 

5.50%, 8/01/25

 

 

1,120

 

 

1,119,899

 

Texas State Department of Housing & Community
Affairs, RB, Series A, AMT (GNMA):

 

 

 

 

 

 

 

5.25%, 7/01/22

 

 

2,555

 

 

2,447,077

 

5.70%, 1/01/33

 

 

1,130

 

 

1,158,600

 

 

 

 

 

 




 

 

 

 

 

 

27,173,323

 









U.S. Virgin Islands — 1.7%

 

 

 

 

 

 

 

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

 

 

3,460

 

 

3,510,897

 









Utah — 0.9%

 

 

 

 

 

 

 

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

 

 

1,935

 

 

1,874,976

 









Vermont — 1.2%

 

 

 

 

 

 

 

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

 

 

2,370

 

 

2,375,546

 









Virginia — 0.6%

 

 

 

 

 

 

 

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

 

 

1,150

 

 

1,185,604

 









Washington — 0.6%

 

 

 

 

 

 

 

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

 

 

1,305

 

 

1,158,801

 









Wisconsin — 3.9%

 

 

 

 

 

 

 

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

 

 

4,980

 

 

5,467,592

 

Wisconsin Health & Educational Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

825

 

 

771,334

 

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

 

 

1,755

 

 

1,794,891

 

 

 

 

 

 




 

 

 

 

 

 

8,033,817

 









Wyoming — 0.1%

 

 

 

 

 

 

 

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

 

 

210

 

 

201,558

 









Total Municipal Bonds — 122.7%

 

 

 

 

 

256,724,536

 









 

 

 

 

 

 

 

 









 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

 

 

 

 

 

 









California — 5.0%

 

 

 

 

 

 

 

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

 

 

2,270

 

 

2,445,103

 

California Educational Facilities Authority, RB, University
of Southern California, Series A, 5.25%, 10/01/39

 

 

1,845

 

 

1,944,279

 

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

 

 

1,620

 

 

1,662,800

 

 

 

 

 

See Notes to Financial Statements.

 




30

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par 
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 

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

 

$

748

 

$

785,101

 

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

 

 

3,494

 

 

3,664,823

 

 

 

 

 

 




 

 

 

 

 

 

10,502,106

 









Colorado — 2.0%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB (FSA):

 

 

 

 

 

 

 

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

 

 

2,580

 

 

2,606,574

 

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

 

 

1,650

 

 

1,663,645

 

 

 

 

 

 




 

 

 

 

 

 

4,270,219

 









Connecticut — 3.2%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

3,180

 

 

3,351,402

 

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

 

 

3,270

 

 

3,403,612

 

 

 

 

 

 




 

 

 

 

 

 

6,755,014

 









Georgia — 1.1%

 

 

 

 

 

 

 

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

 

 

2,259

 

 

2,349,102

 









Massachusetts — 2.5%

 

 

 

 

 

 

 

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

 

 

4,994

 

 

5,158,328

 









New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

1,409

 

 

1,507,854

 









New York — 2.8%

 

 

 

 

 

 

 

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

 

 

1,110

 

 

1,202,877

 

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

 

 

4,240

 

 

4,640,176

 

 

 

 

 

 




 

 

 

 

 

 

5,843,053

 









North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

 

1,080

 

 

1,124,258

 









Ohio — 4.8%

 

 

 

 

 

 

 

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

 

 

9,650

 

 

9,957,739

 









Tennessee — 1.1%

 

 

 

 

 

 

 

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

 

 

2,250

 

 

2,284,245

 









Texas — 2.3%

 

 

 

 

 

 

 

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

 

 

4,620

 

 

4,753,056

 









Virginia — 8.3%

 

 

 

 

 

 

 

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

 

 

3,750

 

 

3,955,950

 

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

 

 

10,940

 

 

11,028,505

 

Virginia Housing Development Authority, RB,
Sub-Series H-1 (MBIA), 5.35%, 7/01/31

 

 

2,370

 

 

2,394,672

 

 

 

 

 

 




 

 

 

 

 

 

17,379,127

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par 
(000)

 

Value

 









Washington — 0.9%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation Authority,
Washington, RB, Series A (FSA), 5.00%, 11/01/32

 

$

1,860

 

$

1,919,016

 









Wisconsin — 1.9%

 

 

 

 

 

 

 

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

 

 

3,960

 

 

3,889,451

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 37.1%

 

 

 

 

 

77,692,568

 









Total Long-Term Investments
(Cost — $336,359,598) — 159.8%

 

 

 

 

 

334,417,104

 









 

 

 

 

 

 

 

 









 

Short-Term Securities

 

Shares

 

 

 

 








FFI Institutional Tax-Exempt Fund, 0.23% (f)(g)

 

 

7,810,077

 

 

7,810,077

 








Total Short-Term Securities
(Cost — $7,810,077) — 3.7%

 

 

 

 

 

7,810,077

 









Total Investments (Cost — $344,169,675*) — 163.5%

 

 

 

 

 

342,227,181

 

Liabilities in Excess of Other Assets — (4.1)%

 

 

 

 

 

(8,690,101

)

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (19.4)%

 

 

 

 

 

(40,580,276

)

Preferred Shares, at Redemption Value — (40.0)%

 

 

 

 

 

(83,705,855

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

209,250,949

 

 

 

 

 

 





 

 



*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

302,809,429

 

 

 



Gross unrealized appreciation

 

$

11,182,985

 

Gross unrealized depreciation

 

 

(12,309,509

)

 

 



Net unrealized depreciation

 

$

(1,126,524

)

 

 




 

 

(a)

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

 

 

(b)

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

 

 

(c)

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


 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Depreciation

 







Morgan Stanley Capital Services, Inc.

 

$

4,823,773

 

$

(79,054

)

Merrill Lynch

 

$

566,970

 

$

(837

)

RBC Capital

 

$

812,538

 

$

(4,510

)

Citigroup NA

 

$

3,404,845

 

$

(22,872

)

Goldman Sachs Bank USA

 

$

800,771

 

$

(3,247

)

Jefferies & Co.

 

$

1,305,940

 

$

(21,934

)

JPMorgan Chase Bank

 

$

1,874,976

 

$

(29,586

)










 

 

(d)

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

 

 

(e)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired the 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.


See Notes to Financial Statements.

 

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

31




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund, Inc. (MHD)


 

 

(f)

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


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







FFI Institutional Tax-Exempt Fund

 

$

5,899,740

 

$

10,028

 








 

 

(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 methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of October 31, 2009 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

7,810,077

 

Level 2 — Long-Term Investments1

 

 

334,417,104

 

Level 3

 

 

 

 

 



Total

 

$

342,227,181

 

 

 




 

 

 

 

1

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


See Notes to Financial Statements.

 

 

 




32

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

 

Schedule of Investments October 31, 2009 (Unaudited)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Alabama — 1.8%

 

 

 

 

 

 

 

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

 

$

3,450

 

$

2,784,530

 









Arizona — 5.5%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,047,140

 

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

 

 

1,000

 

 

963,140

 

Maricopa County IDA, Arizona, RB, Arizona Charter
Schools Project 1, Series A, 6.50%, 7/01/12

 

 

165

 

 

150,714

 

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

 

 

2,060

 

 

1,361,083

 

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

 

 

955

 

 

844,917

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

2,535

 

 

2,266,797

 

5.00%, 12/01/37

 

 

1,385

 

 

1,178,081

 

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

 

 

755

 

 

745,630

 

 

 

 

 

 




 

 

 

 

 

 

8,557,502

 









California — 19.7%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,162,880

 

California Health Facilities Financing Authority, RB:

 

 

 

 

 

 

 

Cedars-Sinai Medical Center, 5.00%, 8/15/39

 

 

930

 

 

864,732

 

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

 

 

1,110

 

 

1,150,726

 

California State Public Works Board, RB, Department
Corrections, Series C, 5.25%, 6/01/28

 

 

2,605

 

 

2,463,001

 

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

 

 

1,090

 

 

1,047,392

 

Poway Unified School District, Special Tax, Community
Facilities District No. 6, Series Area, Series A, 6.13%,
9/01/33

 

 

1,750

 

 

1,654,660

 

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

 

 

2,525

 

 

813,833

 

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

 

 

4,770

 

 

4,841,311

 

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

 

 

 

 

 

 

 

5.50%, 7/01/17

 

 

1,820

 

 

1,319,737

 

5.55%, 7/01/18

 

 

1,945

 

 

1,302,956

 

5.60%, 7/01/19

 

 

2,070

 

 

1,301,119

 

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

 

 

7,325

 

 

8,095,663

 

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

 

 

925

 

 

923,687

 

University of California, RB, Limited Project, Series B,
4.75%, 5/15/38

 

 

4,095

 

 

3,898,358

 

 

 

 

 

 




 

 

 

 

 

 

30,840,055

 









Colorado — 4.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Refunding RB,
Catholic Healthcare, Series A (b):

 

 

 

 

 

 

 

5.50%, 7/01/34

 

 

1,075

 

 

1,095,092

 

5.00%, 7/01/39

 

 

1,270

 

 

1,195,184

 

Elk Valley Public Improvement, RB, Public Improvement
Fee, Series A, 7.10%, 9/01/14

 

 

1,100

 

 

1,123,078

 

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

 

 

1,105

 

 

1,176,825

 

Plaza Metropolitan District No. 1, Colorado, TAN, Sub
Public Improvement Fee, Tax Increment, 8.13%,
12/01/25

 

 

860

 

 

798,622

 

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

 

 

920

 

 

968,171

 

 

 

 

 

 




 

 

 

 

 

 

6,356,972

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









District of Columbia — 1.8%

 

 

 

 

 

 

 

Metropolitan Washington DC Airports Authority Dulles
Toll Road Revenue, RB First Senior Lien, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

$

255

 

$

254,714

 

5.25%, 10/01/44

 

 

400

 

 

410,088

 

Metropolitan Washington DC Airports Authority Dulles
Toll Road Revenue, RB, Series 2nd Senior Lien-B
(AGC), 7.08%, 10/01/34 (a)

 

 

10,170

 

 

2,141,802

 

 

 

 

 

 




 

 

 

 

 

 

2,806,604

 









Florida — 7.3%

 

 

 

 

 

 

 

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

 

 

1,595

 

 

1,446,792

 

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

 

 

870

 

 

889,166

 

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

 

 

545

 

 

562,604

 

County of Miami-Dade, Florida, RB, CAB, Sub-Series A
(MBIA), 5.24%, 10/01/37 (a)

 

 

1,765

 

 

259,014

 

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

 

 

1,515

 

 

1,225,544

 

Hillsborough County IDA, RB:

 

 

 

 

 

 

 

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

 

 

2,310

 

 

2,115,036

 

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

 

 

1,380

 

 

951,607

 

Orange County Health Facilities Authority, RB, Hospital,
Orlando Regional Healthcare, 6.00%, 12/01/12 (c)

 

 

2,400

 

 

2,741,904

 

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

 

 

510

 

 

296,320

 

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

 

 

1,215

 

 

958,598

 

 

 

 

 

 




 

 

 

 

 

 

11,446,585

 









Georgia — 2.0%

 

 

 

 

 

 

 

City of Atlanta, Georgia, TAN, Refunding, Atlantic Station
Project (AGC):

 

 

 

 

 

 

 

5.00%, 12/01/23

 

 

975

 

 

1,017,783

 

4.75%, 12/01/24

 

 

280

 

 

286,023

 

Metropolitan Atlanta Rapid Transit Authority, RB,
3rd Series, 5.00%, 7/01/39

 

 

1,740

 

 

1,777,358

 

 

 

 

 

 




 

 

 

 

 

 

3,081,164

 









Guam — 1.0%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

320

 

 

333,213

 

6.75%, 11/15/29

 

 

560

 

 

599,166

 

7.00%, 11/15/39

 

 

575

 

 

621,483

 

 

 

 

 

 




 

 

 

 

 

 

1,553,862

 









Idaho — 1.3%

 

 

 

 

 

 

 

Power County Industrial Development Corp., RB,
FMC Corp. Project, AMT, 6.45%, 8/01/32

 

 

2,000

 

 

2,003,680

 









Illinois — 2.1%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

902,060

 

Illinois Finance Authority, RB, Monarch Landing Inc.
Facilities, Series A, 7.00%, 12/01/37

 

 

720

 

 

360,000

 

Illinois HDA, RB, Homeowner Mortgage, Sub-Series C-2,
AMT, 5.25%, 8/01/22

 

 

2,000

 

 

2,028,980

 

 

 

 

 

 




 

 

 

 

 

 

3,291,040

 










See Notes to Financial Statements.

 

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

33




 

 



 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Indiana — 3.4%

 

 

 

 

 

 

 

County of Saint Joseph, RB, Notre Dame Du Lac Project,
5.00%, 3/01/36

 

$

1,135

 

$

1,184,441

 

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

 

 

1,660

 

 

1,690,395

 

Indiana Finance Authority, RB:

 

 

 

 

 

 

 

Refunding Duke Energy, Series C, 4.95%, 10/01/40

 

 

1,520

 

 

1,449,229

 

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

 

 

420

 

 

407,056

 

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

 

 

565

 

 

606,104

 

 

 

 

 

 




 

 

 

 

 

 

5,337,225

 









Kansas — 1.2%

 

 

 

 

 

 

 

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

 

 

1,785

 

 

1,834,284

 









Louisiana — 1.8%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,396,050

 

Parish of East Baton Rouge, Louisiana, RB, Series A,
5.25%, 2/01/39

 

 

420

 

 

431,080

 

 

 

 

 

 




 

 

 

 

 

 

2,827,130

 









Maryland — 0.5%

 

 

 

 

 

 

 

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

 

 

750

 

 

750,157

 









Massachusetts — 4.0%

 

 

 

 

 

 

 

Massachusetts Development Finance Agency, RB:

 

 

 

 

 

 

 

Boston University, Series P, 5.45%, 5/15/59

 

 

845

 

 

857,379

 

Neville Community, Series A (GNMA), 5.75%,
6/20/22

 

 

600

 

 

646,686

 

Neville Community, Series A (GNMA), 6.00%,
6/20/44

 

 

1,500

 

 

1,574,640

 

Massachusetts HFA, Massachusetts, RB, Housing,
Series F, AMT, 5.70%, 6/01/40

 

 

1,140

 

 

1,142,337

 

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

 

 

2,100

 

 

2,026,017

 

 

 

 

 

 




 

 

 

 

 

 

6,247,059

 









Michigan — 3.7%

 

 

 

 

 

 

 

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

 

 

460

 

 

568,008

 

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

 

 

1,030

 

 

947,548

 

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

 

 

1,520

 

 

1,457,148

 

Michigan Strategic Fund, Refunding RB, Detroit Edison
Poll, Series C, AMT (Syncora), 5.65%, 9/01/29

 

 

2,935

 

 

2,869,726

 

 

 

 

 

 




 

 

 

 

 

 

5,842,430

 









Minnesota — 1.1%

 

 

 

 

 

 

 

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

 

 

1,540

 

 

1,719,826

 









Mississippi — 1.6%

 

 

 

 

 

 

 

Mississippi Business Finance Corp., RB, System Energy
Resource Inc. Project, 5.88%, 4/01/22

 

 

2,000

 

 

2,002,060

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project, 5.90%, 5/01/22

 

 

500

 

 

500,515

 

 

 

 

 

 




 

 

 

 

 

 

2,502,575

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

 

Value

 









Missouri — 1.1%

 

 

 

 

 

 

 

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

 

$

1,000

 

$

840,270

 

Missouri Development Finance Board, Missouri, RB,
Branson, Series A, 5.50%, 12/01/32

 

 

1,000

 

 

964,500

 

 

 

 

 

 




 

 

 

 

 

 

1,804,770

 









New Hampshire — 1.0%

 

 

 

 

 

 

 

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

 

 

1,530

 

 

1,595,209

 









New Jersey — 6.5%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.75%, 6/15/29

 

 

4,050

 

 

3,897,720

 

Cigarette Tax, 5.50%, 6/15/31

 

 

1,890

 

 

1,746,114

 

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

 

 

2,000

 

 

1,959,020

 

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

 

 

2,500

 

 

2,584,875

 

 

 

 

 

 




 

 

 

 

 

 

10,187,729

 









New York — 6.6%

 

 

 

 

 

 

 

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

 

 

885

 

 

860,291

 

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

 

 

1,050

 

 

1,125,484

 

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

 

 

1,270

 

 

1,303,261

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

525

 

 

444,780

 

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

 

 

525

 

 

387,125

 

Series C, 6.80%, 6/01/28

 

 

415

 

 

431,691

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

3,300

 

 

3,426,654

 

Tobacco Settlement Financing Corp., New York, RB:

 

 

 

 

 

 

 

Asset-Backed, Series A-1, 5.50%, 6/01/15

 

 

1,100

 

 

1,116,566

 

Series B-1C, 5.50%, 6/01/22

 

 

1,100

 

 

1,153,636

 

 

 

 

 

 




 

 

 

 

 

 

10,249,488

 









North Carolina — 2.7%

 

 

 

 

 

 

 

North Carolina Eastern Municipal Power Agency, North
Carolina, RB:

 

 

 

 

 

 

 

Series B, 5.00%, 1/01/26

 

 

1,115

 

 

1,135,449

 

Series D, 6.75%, 1/01/10 (c)

 

 

2,000

 

 

2,041,640

 

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

 

 

 

 

 

 

 

5.00%, 6/01/39

 

 

315

 

 

311,626

 

5.00%, 6/01/42

 

 

705

 

 

691,626

 

 

 

 

 

 




 

 

 

 

 

 

4,180,341

 









Ohio — 1.6%

 

 

 

 

 

 

 

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

 

 

1,565

 

 

1,260,733

 

County of Montgomery, Ohio, Refunding RB, Catholic
Healthcare, Series A, 5.00%, 5/01/39 (b)

 

 

1,270

 

 

1,200,823

 

 

 

 

 

 




 

 

 

 

 

 

2,461,556

 










See Notes to Financial Statements.

 

 

 




34

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Pennsylvania — 7.9%

 

 

 

 

 

 

 

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

 

$

590

 

$

576,164

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

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

 

 

950

 

 

943,455

 

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

 

 

2,750

 

 

1,741,300

 

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

 

 

1,830

 

 

1,950,798

 

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

 

 

3,455

 

 

3,437,345

 

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

 

 

540

 

 

501,622

 

Sayre Health Care Facilities Authority, RB, Guthrie
Health Issue, Series B, 7.13%, 12/01/11 (c)

 

 

2,630

 

 

3,162,917

 

 

 

 

 

 




 

 

 

 

 

 

12,313,601

 









Puerto Rico — 2.7%

 

 

 

 

 

 

 

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

 

 

1,550

 

 

1,157,865

 

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

 

 

2,790

 

 

3,017,385

 

 

 

 

 

 




 

 

 

 

 

 

4,175,250

 









South Dakota — 0.8%

 

 

 

 

 

 

 

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

 

 

1,350

 

 

1,290,654

 









Tennessee — 2.2%

 

 

 

 

 

 

 

Hardeman County Correctional Facilities Corp.,
Tennessee, RB, Series B, 7.38%, 8/01/17

 

 

2,200

 

 

2,050,510

 

Shelby County Health Educational & Housing Facilities
Board, RB, Methodist Healthcare, 6.50%, 9/01/12 (c)

 

 

1,280

 

 

1,468,698

 

 

 

 

 

 




 

 

 

 

 

 

3,519,208

 









Texas — 10.0%

 

 

 

 

 

 

 

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

 

 

1,930

 

 

1,738,254

 

Brazos River Harbor Navigation District, RB, Dow
Chemical Co. Project, Series A-7, AMT, 6.63%,
5/15/33

 

 

2,500

 

 

2,513,175

 

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

 

 

1,380

 

 

1,542,426

 

Houston, Texas, Airport Systems Revenue, Refunding ARB,
Senior Lien, Series A, 5.50%, 7/01/39

 

 

775

 

 

803,861

 

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

 

 

590

 

 

584,631

 

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

 

 

3,265

 

 

3,182,428

 

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

 

 

3,020

 

 

3,136,512

 

SA Energy Acquisition Public Facility Corp., RB, Gas
Supply Revenue:

 

 

 

 

 

 

 

5.50%, 8/01/23

 

 

1,130

 

 

1,151,775

 

5.50%, 8/01/24

 

 

1,035

 

 

1,045,340

 

 

 

 

 

 




 

 

 

 

 

 

15,698,402

 









U.S. Virgin Islands — 1.7%

 

 

 

 

 

 

 

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

 

 

2,680

 

 

2,719,423

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Utah — 0.9%

 

 

 

 

 

 

 

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

 

$

1,400

 

$

1,356,572

 









Vermont — 0.6%

 

 

 

 

 

 

 

Vermont Educational & Health Buildings Financing
Agency, RB, Developmental & Mental Health,
Series A, 6.50%, 6/15/32

 

 

1,000

 

 

919,170

 









Virginia — 2.3%

 

 

 

 

 

 

 

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

 

 

425

 

 

438,158

 

Virginia HDA, RB, Series D, AMT, 6.00%, 4/01/24

 

 

3,200

 

 

3,226,592

 

 

 

 

 

 




 

 

 

 

 

 

3,664,750

 









Washington — 0.5%

 

 

 

 

 

 

 

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

 

 

945

 

 

839,132

 









Wisconsin — 4.3%

 

 

 

 

 

 

 

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

 

 

3,620

 

 

3,974,434

 

Wisconsin Health & Educational Facilities Authority, RB,
SynergyHealth Inc., 6.00%, 11/15/32

 

 

1,360

 

 

1,390,913

 

Wisconsin Housing & EDA, Refunding RB, Series C,
AMT, 4.88%, 3/01/36 (b)

 

 

1,455

 

 

1,336,738

 

 

 

 

 

 




 

 

 

 

 

 

6,702,085

 









Total Municipal Bonds — 117.3%

 

 

 

 

 

183,460,020

 









 

 

 

 

 

 

 

 


 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

 

 

 

 

 

 









California — 6.9%

 

 

 

 

 

 

 

Bay Area Toll Authority, Refunding RB, San Francisco
Bay Area, Series F1, 5.63%, 4/01/44 (e)

 

 

1,640

 

 

1,766,506

 

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

 

 

1,335

 

 

1,406,836

 

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

 

 

1,170

 

 

1,200,911

 

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

 

 

553

 

 

580,975

 

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

 

 

5,519

 

 

5,788,219

 

 

 

 

 

 




 

 

 

 

 

 

10,743,447

 









Colorado — 2.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series C3, 5.10%, 10/01/41

 

 

1,870

 

 

1,889,261

 

Series C7, 5.00%, 9/01/36

 

 

1,200

 

 

1,209,924

 

 

 

 

 

 




 

 

 

 

 

 

3,099,185

 









Connecticut — 3.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series T1, 4.70%, 7/01/29

 

 

2,300

 

 

2,423,970

 

Series X3, 4.85%, 7/01/37

 

 

2,370

 

 

2,466,838

 

 

 

 

 

 




 

 

 

 

 

 

4,890,808

 









Georgia — 1.1%

 

 

 

 

 

 

 

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

 

 

1,649

 

 

1,715,052

 









Massachusetts — 2.0%

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,098,095

 









New Hampshire — 0.7%

 

 

 

 

 

 

 

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

 

 

1,019

 

 

1,090,788

 










 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

35




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par 
(000)

 

Value

 







New York — 2.8%

 

 

 

 

 

 

 

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

 

$

810

 

$

877,775

 

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

 

 

3,200

 

 

3,502,019

 

 

 

 

 

 




 

 

 

 

 

 

4,379,794

 









North Carolina — 0.5%

 

 

 

 

 

 

 

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

 

 

800

 

 

832,784

 









Ohio — 4.6%

 

 

 

 

 

 

 

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

 

 

6,980

 

 

7,202,592

 









Tennessee — 1.6%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,538,050

 









Texas — 2.2%

 

 

 

 

 

 

 

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

 

 

3,360

 

 

3,456,768

 









Virginia — 8.0%

 

 

 

 

 

 

 

University of Virginia, Refunding RB, 5.00%, 6/01/40 (e)

 

 

2,730

 

 

2,879,932

 

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

 

 

 

 

 

 

 

5.35%, 7/01/31

 

 

1,725

 

 

1,742,957

 

5.38%, 7/01/36 (e)

 

 

7,900

 

 

7,963,911

 

 

 

 

 

 




 

 

 

 

 

 

12,586,800

 









Washington — 0.9%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation Authority,
Washington, RB, Series A (FSA), 5.00%, 11/01/32

 

 

1,365

 

 

1,408,309

 









Wisconsin — 1.8%

 

 

 

 

 

 

 

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

 

 

2,860

 

 

2,809,048

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 38.2%

 

 

 

 

 

59,851,520

 









Total Long-Term Investments
(Cost — $242,901,316) — 155.5%

 

 

 

 

 

243,311,540

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.23% (f)(g)

 

 

7,912,795

 

 

7,912,795

 









Total Short-Term Securities
(Cost — $7,912,795) — 5.1%

 

 

 

 

 

7,912,795

 









Total Investments (Cost — $250,814,111*) — 160.6%

 

 

 

 

 

251,224,335

 

Liabilities in Excess of Other Assets — (5.3)%

 

 

 

 

 

(8,201,960

)

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (20.1)%

 

 

 

 

 

(31,509,694

)

Preferred Shares, at Redemption Value — (35.2)%

 

 

 

 

 

(55,053,855

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

156,458,826

 

 

 

 

 

 




 









 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

218,736,473

 

 

 




Gross unrealized appreciation

 

$

8,761,596

 

Gross unrealized depreciation

 

 

(7,754,113

)

 

 




Net unrealized appreciation

 

$

1,007,483

 

 

 





 

 

(a)

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

 

 

(b)

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


 

 

 

 

 

 

 

 









Counterparty

 

Value

 

Unrealized
Depreciation

 







CitiGroup Global Markets

 

$

2,460,400

 

$

(16,527

)

Goldman Sachs

 

$

576,165

 

$

(2,336

)

Jeffries & Co.

 

$

943,455

 

$

(15,846

)

JPMorgan Chase Bank NA

 

$

2,693,310

 

$

(13,840

)

Merrill Lynch & Co.

 

$

407,056

 

$

(601

)

Morgan Stanley Capital Services, Inc.

 

$

3,491,100

 

$

(57,211

)

RBC Capital

 

$

584,631

 

$

(3,245

)










 

 

(c)

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

 

 

(d)

Securities represent bonds transferred to a tender option bond trust established in exchange for which the Fund acquired the 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.

 

 

(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)

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


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







FFI Institutional Tax-Exempt Fund

 

$

7,799,969

 

$

7,305

 










 

 

 

(g)

Represents 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 methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of October 31, 2009 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

7,912,795

 

Level 2 — Long-Term Investments1

 

 

243,311,540

 

Level 3

 

 

 

 

 




Total

 

$

251,224,335

 

 

 





 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.

 




36

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

 

Schedule of Investments October 31, 2009 (Unaudited)

BlackRock MuniHoldings Insured Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Alabama — 2.6%

 

 

 

 

 

 

 

Birmingham, Alabama, Special Care Facilities Financing
Authority, RB, Health Care Facilities, Children’s
Hospital (AGC), 6.00%, 6/01/39

 

$

2,330

 

$

2,472,083

 

County of Jefferson, Alabama, RB, Series A, 5.50%,
1/01/22

 

 

2,170

 

 

1,806,742

 

 

 

 

 

 




 

 

 

 

 

 

4,278,825

 









Arkansas — 3.7%

 

 

 

 

 

 

 

Arkansas Development Finance Authority, Refunding RB,
Mortgage Loan, Series C (FHA), 5.35%, 12/01/35

 

 

6,220

 

 

6,263,602

 









California — 15.1%

 

 

 

 

 

 

 

California State Public Works Board, RB, Department
General Services, Capitol East End, Series A (AMBAC),
5.00%, 12/01/27

 

 

2,000

 

 

1,855,940

 

Central Unified School District, GO, Election of 2008,
Series A (AGC), 5.63%, 8/01/33

 

 

1,325

 

 

1,423,116

 

City of Vista California, COP, Community Projects (MBIA),
5.00%, 5/01/37

 

 

3,600

 

 

3,327,156

 

County of Sacramento, California, RB, Senior, Series A
(AGC), 5.50%, 7/01/41

 

 

2,100

 

 

2,202,039

 

East Side Union High School District-Santa Clara
County, California, GO, 2002 Election Series B
(MBIA), 5.00%, 8/01/27

 

 

1,800

 

 

1,808,424

 

Modesto Schools Infrastructure Financing Agency,
Special Tax (AMBAC), 5.50%, 9/01/36

 

 

2,565

 

 

2,267,588

 

Oceanside Unified School District, California, GO,
Series A (AGC), 5.25%, 8/01/33

 

 

1,825

 

 

1,858,178

 

San Pablo Joint Powers Financing Authority, California,
TAN, CAB (MBIA) (a):

 

 

 

 

 

 

 

5.66%, 12/01/24

 

 

2,635

 

 

1,120,534

 

5.66%, 12/01/25

 

 

2,355

 

 

935,853

 

5.66%, 12/01/26

 

 

2,355

 

 

874,906

 

Santa Ana Unified School District, GO (MBIA), 5.00%,
8/01/32

 

 

4,265

 

 

4,162,768

 

West Contra Costa Unified School District, California,
GO, Election of 2000, Series C (MBIA), 5.00%,
8/01/21

 

 

3,480

 

 

3,532,339

 

 

 

 

 

 




 

 

 

 

 

 

25,368,841

 









Colorado — 1.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Hospital,
NCMC Inc. Project, Series B (FSA), 6.00%, 5/15/26

 

 

1,900

 

 

2,083,521

 









District of Columbia — 0.2%

 

 

 

 

 

 

 

District of Columbia, RB, Deed Tax, Housing Prod Trust
Fund, Series A (MBIA), 5.00%, 6/01/32

 

 

400

 

 

392,548

 









Florida — 14.4%

 

 

 

 

 

 

 

City of Orlando, Florida, RB, Senior, 6th Cent Contract
Payments, Series A (AGC), 5.25%, 11/01/38

 

 

2,000

 

 

2,007,780

 

County of Miami-Dade, Florida, RB, CAB, Sub-Series A
(MBIA), 5.24%, 10/01/37 (a)

 

 

2,225

 

 

326,519

 

County of Miami-Dade, Florida, RB, Miami International
Airport, Series A, AMT (FSA), 5.50%, 10/01/41

 

 

3,900

 

 

3,916,458

 

County of Pasco, Florida, RB, Half-Cent (AMBAC),
5.13%, 12/01/28

 

 

3,850

 

 

3,615,574

 

Jacksonville Health Facilities Authority, RB, Baptist
Medical Center (FSA), 5.00%, 8/15/37

 

 

4,515

 

 

4,382,710

 

Jacksonville Port Authority, RB, AMT (AGC), 6.00%,
11/01/38

 

 

2,215

 

 

2,250,152

 

Orange County School Board, COP, Series A (AGC),
5.50%, 8/01/34

 

 

7,395

 

 

7,698,491

 

 

 

 

 

 




 

 

 

 

 

 

24,197,684

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







Georgia — 4.0%

 

 

 

 

 

 

 

City of Augusta, Georgia, RB (FSA), 5.25%, 10/01/39

 

$

3,495

 

$

3,604,708

 

Metropolitan Atlanta Rapid Transit Authority, Refunding
RB, Third Indenture, Series B (FSA), 5.00%, 7/01/34

 

 

2,940

 

 

3,051,661

 

 

 

 

 

 




 

 

 

 

 

 

6,656,369

 









Illinois — 11.6%

 

 

 

 

 

 

 

Chicago Board of Education, Illinois, GO, Chicago
School Reform Board, Series A (MBIA), 5.50%,
12/01/26

 

 

1,200

 

 

1,313,328

 

Chicago Transit Authority, RB, Federal Transit
Administration Section 5309, Series A (AGC),
6.00%, 6/01/26

 

 

2,000

 

 

2,269,520

 

City of Chicago, Illinois, RB, Series A (FSA), 5.00%,
1/01/33

 

 

8,000

 

 

8,047,440

 

City of Chicago, Illinois, Refunding RB (MBIA):

 

 

 

 

 

 

 

General Airport Third Lien, Series A, AMT,
5.75%, 1/01/19

 

 

1,875

 

 

1,912,687

 

Second Lien, 5.50%, 1/01/30

 

 

1,310

 

 

1,413,398

 

Lake Cook-Dane & McHenry Counties Community Unit
School District 220, Illinois, GO (MBIA), 5.75%,
12/01/19

 

 

45

 

 

46,897

 

State of Illinois, GO, First Series (MBIA), 6.00%,
1/01/18

 

 

4,500

 

 

4,536,405

 

 

 

 

 

 




 

 

 

 

 

 

19,539,675

 









Indiana — 4.4%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, Indiana, RB, Series A
(MBIA), 5.00%, 1/01/42

 

 

6,000

 

 

5,923,920

 

Indianapolis Local Public Improvement Bond Bank, RB,
Waterworks Project, Series A (AGC), 5.50%, 1/01/38

 

 

1,430

 

 

1,529,714

 

 

 

 

 

 




 

 

 

 

 

 

7,453,634

 









Iowa — 1.1%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Iowa Health System (AGC),
5.25%, 2/15/29

 

 

1,770

 

 

1,799,789

 









Kentucky — 1.1%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,
Kentucky, RB, Louisville Arena, Sub-Series A-1 (AGC),
6.00%, 12/01/38

 

 

650

 

 

688,844

 

Kentucky State Property & Buildings Commission,
Kentucky, Refunding RB, Project No. 93 (AGC),
5.25%, 2/01/29

 

 

1,000

 

 

1,073,400

 

 

 

 

 

 




 

 

 

 

 

 

1,762,244

 









Louisiana — 1.4%

 

 

 

 

 

 

 

Louisiana State Citizens Property Insurance Corp., RB,
Series C-3 (AGC), 6.13%, 6/01/25

 

 

2,055

 

 

2,284,215

 









Massachusetts — 1.7%

 

 

 

 

 

 

 

Massachusetts HFA, Massachusetts, RB, AMT:

 

 

 

 

 

 

 

Housing Development, Series A, (MBIA), 5.15%,
6/01/11

 

 

315

 

 

316,925

 

Rental, Mortgage, Series C (FSA), 5.50%, 7/01/32

 

 

2,440

 

 

2,456,031

 

 

 

 

 

 




 

 

 

 

 

 

2,772,956

 









Michigan — 15.1%

 

 

 

 

 

 

 

City of Detroit, Michigan, RB:

 

 

 

 

 

 

 

Second Lien Series B (MBIA), 5.50%, 7/01/29

 

 

2,410

 

 

2,417,784

 

Second Lien Series E (FGIC), 5.75%, 7/01/31

 

 

3,240

 

 

3,482,125

 

Senior Lien, Series B (FSA), 7.50%, 7/01/33

 

 

700

 

 

864,360

 

City of Detroit, Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series C (FGIC), 5.75%, 7/01/27

 

 

1,580

 

 

1,714,474

 

Senior Lien, Series C-1 (FSA), 7.00%, 7/01/27

 

 

4,810

 

 

5,866,613

 

Senior Lien, Series C-2 (FGIC), 5.25%, 7/01/29

 

 

1,910

 

 

1,988,100

 

Michigan State Building Authority Revenue, RB,
Facilities Program, Refunding, Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

875

 

 

923,160

 

5.25%, 10/15/25

 

 

455

 

 

476,999

 


 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

37




 

 


 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 


Michigan (concluded)

 

 

 

 

 

 

 

Michigan Strategic Fund, Refunding RB (Syncora), AMT:

 

 

 

 

 

 

 

Detroit Edison Co. Project, Series A, 5.50%,
6/01/30

 

$

2,000

 

$

1,873,600

 

Detroit Edison Poll, Series B, 5.65%, 9/01/29

 

 

1,500

 

 

1,466,640

 

Detroit Edison Poll, Series C, 5.65%, 9/01/29

 

 

2,050

 

 

2,004,408

 

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

 

 

1,910

 

 

2,218,255

 

 

 

 

 

 




 

 

 

 

 

 

25,296,518

 









Minnesota — 3.4%

 

 

 

 

 

 

 

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

 

 

1,325

 

 

1,491,725

 

Sauk Rapids ISD No. 47, Minnesota, GO, Series A
(MBIA), 5.65%, 2/01/19

 

 

4,015

 

 

4,233,978

 

 

 

 

 

 




 

 

 

 

 

 

5,725,703

 









Missouri — 5.5%

 

 

 

 

 

 

 

Cape Girardeau School District No. 63, Missouri, GO,
Missouri Direct Deposit Program (FGIC), 5.50%,
3/01/18

 

 

2,000

 

 

2,030,000

 

Mehlville School District No. R-9, Missouri, COP,
Series A (FSA):

 

 

 

 

 

 

 

5.50%, 3/01/11 (b)

 

 

5,510

 

 

5,872,062

 

5.50%, 3/01/14

 

 

360

 

 

379,390

 

5.50%, 3/01/15

 

 

405

 

 

426,813

 

5.50%, 3/01/16

 

 

215

 

 

226,580

 

5.50%, 3/01/17

 

 

280

 

 

295,081

 

 

 

 

 

 




 

 

 

 

 

 

9,229,926

 









Nevada — 1.6%

 

 

 

 

 

 

 

County of Clark, Nevada, RB, AMT (AMBAC):

 

 

 

 

 

 

 

Jet Aviation Fuel Tax, Series C, 5.38%, 7/01/20

 

 

1,000

 

 

958,780

 

Las Vegas, McCarran, Series A-1, 5.00%,
7/01/23

 

 

1,750

 

 

1,746,448

 

 

 

 

 

 




 

 

 

 

 

 

2,705,228

 









New Jersey — 9.1%

 

 

 

 

 

 

 

New Jersey EDA, RB, Motor Vehicle Surcharge, Series A
(MBIA), 5.25%, 7/01/33

 

 

6,700

 

 

6,760,166

 

New Jersey Health Care Facilities Financing Authority,
RB, Virtua Health (AGC), 5.50%, 7/01/38

 

 

2,100

 

 

2,168,187

 

New Jersey State Housing & Mortgage Finance Agency,
RB, Single Family Housing, Series CC, 5.25%,
10/01/29 (c)

 

 

2,400

 

 

2,468,136

 

New Jersey Transportation Trust Fund Authority, New
Jersey, RB, Transportation System, Series A (AGC),
5.63%, 12/15/28

 

 

3,500

 

 

3,919,720

 

 

 

 

 

 




 

 

 

 

 

 

15,316,209

 









New York — 6.1%

 

 

 

 

 

 

 

City of New York, New York, GO, Series E (FSA), 5.00%,
11/01/17

 

 

4,000

 

 

4,301,680

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

1,400

 

 

1,453,732

 

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

 

 

4,095

 

 

4,481,118

 

 

 

 

 

 




 

 

 

 

 

 

10,236,530

 









Oregon — 0.9%

 

 

 

 

 

 

 

City of Portland, Oregon, TAN, Oregon Convention Center,
Series A (AMBAC), 5.75%, 6/15/15

 

 

1,400

 

 

1,448,538

 









Puerto Rico — 1.4%

 

 

 

 

 

 

 

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

 

 

2,115

 

 

2,281,197

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Rhode Island — 3.1%

 

 

 

 

 

 

 

Providence Redevelopment Agency, Rhode Island, RB,
Public Safety & Municipal Buildings, Series A
(AMBAC), 5.75%, 4/01/10 (b)

 

$

5,000

 

$

5,156,250

 









Texas — 17.8%

 

 

 

 

 

 

 

City of Dallas, Texas, Refunding RB & Improvement
(AGC), 5.25%, 8/15/38

 

 

1,250

 

 

1,275,813

 

City of Houston, Texas, Refunding RB, Combined,
First Lien, Series A (AGC), 6.00%, 11/15/35

 

 

4,000

 

 

4,547,040

 

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

 

 

600

 

 

670,620

 

Lower Colorado River Authority, Refunding RB (AGC),
5.50%, 5/15/36

 

 

2,610

 

 

2,722,100

 

Lubbock Copper Texas Independent School District,
GO, School Building (AGC), 5.75%, 2/15/42

 

 

775

 

 

820,609

 

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

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

6,710

 

 

6,770,323

 

Series A, 5.63%, 1/01/33

 

 

6,585

 

 

6,716,107

 

Series B, 5.75%, 1/01/40

 

 

6,275

 

 

6,331,412

 

 

 

 

 

 




 

 

 

 

 

 

29,854,024

 









Utah — 1.4%

 

 

 

 

 

 

 

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

 

 

2,485

 

 

2,407,915

 









Virginia — 1.0%

 

 

 

 

 

 

 

Virginia Public School Authority, Virginia, RB, School
Financing, 6.50%, 12/01/35

 

 

1,500

 

 

1,724,055

 









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

 

 

2,217,484

 

Snohomish County Public Utility District No. 1,
Washington, RB (FSA), 5.50%, 12/01/22

 

 

1,810

 

 

1,946,257

 

 

 

 

 

 




 

 

 

 

 

 

4,163,741

 









Total Municipal Bonds — 131.4%

 

 

 

 

 

220,399,737

 









 

 

 

 

 

 

 

 


Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

 

 

 

 

 

 


California — 2.7%

 

 

 

 

 

 

 

City of San Jose, California, GO, Libraries, Parks, Public
Safety Project (MBIA), 5.00%, 9/01/30

 

 

1,259

 

 

1,283,911

 

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

 

 

3,149

 

 

3,303,060

 

 

 

 

 

 




 

 

 

 

 

 

4,586,971

 









Colorado — 3.4%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic
Health, Series C3 (FSA), 5.10%, 10/01/41

 

 

5,610

 

 

5,667,783

 









District of Columbia — 0.7%

 

 

 

 

 

 

 

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

 

 

1,040

 

 

1,162,609

 









Florida — 8.8%

 

 

 

 

 

 

 

City of Saint Petersburg, Florida, Refunding RB (MBIA),
5.00%, 10/01/35

 

 

4,302

 

 

4,180,129

 

County of Miami-Dade, Florida, GO, Building Better
Communities Program, Series B-1, 6.00%,
7/01/38 (e)

 

 

7,500

 

 

8,215,125

 

Lee County HFA, RB, Multi-County Program, Series A-2,
AMT (GNMA), 6.00%, 9/01/40

 

 

2,145

 

 

2,301,242

 

 

 

 

 

 




 

 

 

 

 

 

14,696,496

 



 

 

 

See Notes to Financial Statements.


38

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

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 (d)

 

Par 
(000)

 

Value

 


Georgia — 2.5%

 

 

 

 

 

 

 

City of Augusta, Georgia, RB (FSA), 5.25%, 10/01/34

 

$

4,000

 

$

4,139,840

 









Illinois — 1.6%

 

 

 

 

 

 

 

City of Chicago, Illinois, Refunding RB, Second Lien
(FSA), 5.25%, 11/01/33

 

 

2,509

 

 

2,626,463

 









Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky State Property & Buildings Commission,
Kentucky, Refunding RB, Project No. 93 (AGC),
5.25%, 2/01/27 (e)

 

 

1,407

 

 

1,506,635

 









Massachusetts — 6.9%

 

 

 

 

 

 

 

Massachusetts Bay Transportation Authority, Refunding
RB, Senior, Series A, 5.00%, 7/01/35

 

 

3,375

 

 

3,382,054

 

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

 

 

8,008

 

 

8,271,914

 

 

 

 

 

 




 

 

 

 

 

 

11,653,968

 









Nevada — 5.7%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO (e):

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

5,000

 

 

5,487,950

 

Series B, 5.50%, 7/01/29

 

 

3,749

 

 

4,073,679

 

 

 

 

 

 




 

 

 

 

 

 

9,561,629

 









Virginia — 0.9%

 

 

 

 

 

 

 

Virginia Housing Development Authority, RB,
Sub-Series H-1 (MBIA), 5.35%, 7/01/31

 

 

1,500

 

 

1,515,615

 









Washington — 2.5%

 

 

 

 

 

 

 

City of Bellevue, Washington, GO, Refunding (MBIA),
5.50%, 12/01/39

 

 

4,002

 

 

4,241,318

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 36.6%

 

 

 

 

 

61,359,327

 









Total Long-Term Investments
(Cost $277,645,116) — 168.0%

 

 

 

 

 

281,759,064

 









 

 

 

 

 

 

 

 


 

Short-Term Securities

 

Shares

 

 

 

 


FFI Institutional Tax-Exempt Fund, 0.23% (f)(g)

 

 

8,022,503

 

 

8,022,503

 









Total Short-Term Securities
(Cost — $8,022,503) — 4.7%

 

 

 

 

 

8,022,503

 









Total Investments (Cost — $285,667,619*) — 172.7%

 

 

 

 

 

289,781,567

 

Liabilities in Excess of Other Assets — (0.9)%

 

 

 

 

 

(1,572,020

)

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (19.9)%

 

 

 

 

 

(33,409,681

)

Preferred Shares, at Redemption Value — (51.9)%

 

 

 

 

 

(87,004,520

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

167,795,346

 

 

 

 

 

 





 

 


*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

251,898,376

 

 

 




Gross unrealized appreciation

 

$

10,633,424

 

Gross unrealized depreciation

 

 

(6,125,274

)

 

 




Net unrealized appreciation

 

$

4,508,150

 

 

 





 

 

(a)

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

 

 

(b)

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

 

 

(c)

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


 

 

 

 

 

 

 

 


Counterparty

 

Value

 

Unrealized
Appreciation
(Depreciation)

 


JPMorgan Chase Bank NA

 

$

2,407,915

 

$

(37,996

)

Merrill Lynch & Co.

 

$

2,468,136

 

$

1,272

 



 

 

(d)

Securities represent underlying 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.

 

 

(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)

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


 

 

 

 

 

 

 

 


Affiliate

 

Net
Activity

 

Income

 


FFI Institutional Tax-Exempt Fund

 

$

(7,304,200

)

$

21,985

 



 

 

 

(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 methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of October 31, 2009 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 


Valuation Inputs

 

Investments in
Securities

 


 

 

Assets

 

 

 


Level 1 — Short-Term Securities

 

$

8,022,503

 

Level 2 — Long-Term Investments1

 

 

281,759,064

 

Level 3

 

 

 

 

 




Total

 

$

289,781,567

 

 

 




 

 

 

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


 

 

 

See Notes to Financial Statements.

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

39




 

 


 

 

Schedule of Investments October 31, 2009 (Unaudited)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 


Alabama — 3.2%

 

 

 

 

 

 

 

Birmingham Special Care Facilities Financing Authority,
RB, Children’s Hospital (AGC), 6.00%, 6/01/34

 

$

4,615

 

$

4,915,806

 

County of Jefferson Alabama, RB, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/21

 

 

5,500

 

 

4,580,840

 

5.25%, 1/01/23

 

 

6,500

 

 

5,409,560

 

Tuscaloosa Special Care Facilities Financing Authority,
RB, Capstone Village, Series A, 5.63%, 8/01/25 (a)(b)

 

 

6,600

 

 

2,640,000

 

 

 

 

 

 




 

 

 

 

 

 

17,546,206

 









Arizona — 4.4%

 

 

 

 

 

 

 

City of Tucson, Arizona, COP (AGC):

 

 

 

 

 

 

 

4.00%, 7/01/20

 

 

1,745

 

 

1,756,761

 

4.25%, 7/01/21

 

 

1,870

 

 

1,903,342

 

4.25%, 7/01/22

 

 

1,895

 

 

1,912,889

 

4.50%, 7/01/24

 

 

2,120

 

 

2,141,433

 

City of Tucson, Arizona, COP, Refunding (AGC), 4.00%,
7/01/20

 

 

2,325

 

 

2,340,671

 

Maricopa County IDA, Arizona, RB, Arizona Charter
Schools Project 1, Series A, 6.63%, 7/01/20

 

 

2,820

 

 

2,144,356

 

Pima County IDA, RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project, Series C, 6.70%,
7/01/21

 

 

975

 

 

903,776

 

Charter Schools, Series K, 6.38%, 7/01/13 (c)

 

 

820

 

 

958,022

 

Charter Schools, Series K, 6.38%, 7/01/31

 

 

930

 

 

785,106

 

Pima County IDA, Refunding RB, Tucson Electric
Power Co., San Juan, Series A, 4.95%, 10/01/20

 

 

1,325

 

 

1,327,836

 

Salt River Project Agricultural Improvement & Power
District, RB, Series A, 5.00%, 1/01/25

 

 

4,000

 

 

4,293,520

 

Vistancia Community Facilities District, Arizona, GO,
5.00%, 7/15/14

 

 

3,135

 

 

3,182,025

 

 

 

 

 

 




 

 

 

 

 

 

23,649,737

 









California — 16.2%

 

 

 

 

 

 

 

Antelope Valley Healthcare District, California, RB,
Series A, 5.25%, 9/01/17

 

 

8,000

 

 

7,754,240

 

California Housing Finance Agency, RB, Home Mortgage,
Series M, AMT, 4.55%, 8/01/21

 

 

3,500

 

 

3,220,385

 

California Pollution Control Financing Authority, RB, AMT:

 

 

 

 

 

 

 

Republic Services Inc. Project, Series B, 5.25%,
6/01/23

 

 

605

 

 

605,363

 

Waste Management Inc. Project, Series A-2, 5.40%,
4/01/25

 

 

1,240

 

 

1,227,154

 

California Pollution Control Financing Authority,
Refunding RB, Pacific Gas & Electric, Series A, AMT
(MBIA), 5.35%, 12/01/16

 

 

17,730

 

 

18,259,240

 

California State Department of Water Resources, RB,
Series A, 5.38%, 5/01/12 (c)

 

 

5,000

 

 

5,586,400

 

California State Public Works Board, RB, Department
Corrections, Series C, 5.50%, 6/01/20

 

 

10,000

 

 

10,122,600

 

California Statewide Communities Development
Authority, RB, Health Facilities, Memorial Health
Services, Series A, 6.00%, 10/01/23

 

 

2,500

 

 

2,591,075

 

City of Sacramento, California, Special Tax, North
Natomas Community Facilities, Series 4-C:

 

 

 

 

 

 

 

5.60%, 9/01/20

 

 

585

 

 

539,651

 

5.75%, 9/01/22

 

 

1,715

 

 

1,567,733

 

5.90%, 9/01/23

 

 

500

 

 

458,745

 

6.00%, 9/01/28

 

 

2,990

 

 

2,699,611

 

Golden State Tobacco Securitization Corp., California,
RB, Asset Backed, Senior, Series A-1, 5.00%, 6/01/15

 

 

5,000

 

 

5,060,500

 

Los Angeles Regional Airports Improvement Corp.,
California, Refunding RB, Facilities, LAXFUEL Corp.,
LA International Airport, AMT (AMBAC), 5.50%,
1/01/32

 

 

1,435

 

 

1,391,993

 

Rowland Unified School District, California, GO,
2000 Election, Series B (FSA), 5.25%, 8/01/27

 

 

1,515

 

 

1,566,934

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 


California (concluded)

 

 

 

 

 

 

 

State of California, GO:

 

 

 

 

 

 

 

5.50%, 4/01/28

 

$

15

 

$

15,270

 

Election of 2006, 5.50%, 4/01/14 (c)

 

 

14,795

 

 

17,151,252

 

(MBIA), 5.25%, 2/01/27

 

 

5,000

 

 

5,014,400

 

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

 

 

2,610

 

 

2,606,294

 

 

 

 

 

 




 

 

 

 

 

 

87,438,840

 









Colorado — 2.1%

 

 

 

 

 

 

 

Elk Valley Public Improvement, RB, Public Improvement
Fee, Series A, 7.10%, 9/01/14

 

 

700

 

 

714,686

 

Montrose Memorial Hospital, RB, 6.38%, 12/01/23

 

 

2,250

 

 

2,265,030

 

Plaza Metropolitan District No. 1, Colorado, TAN, Public
Improvement Fee, Tax Increment, 7.50%, 12/01/15

 

 

7,500

 

 

7,303,725

 

Southlands Metropolitan District No. 1, GO, 6.75%,
12/01/14 (c)

 

 

930

 

 

1,079,274

 

 

 

 

 

 




 

 

 

 

 

 

11,362,715

 









Connecticut — 0.2%

 

 

 

 

 

 

 

Connecticut State Development Authority, RB,
Learjet Inc. Project, AMT, 7.95%, 4/01/26

 

 

1,160

 

 

1,228,208

 









Florida — 5.4%

 

 

 

 

 

 

 

County of Miami-Dade, Florida, RB, Miami International
Airport, AMT (MBIA), 5.75%, 10/01/19

 

 

5,500

 

 

5,679,795

 

County of Miami-Dade, Florida, Refunding RB, Series C,
5.00%, 10/01/23

 

 

8,000

 

 

8,557,760

 

Harbor Bay Community Development District, Florida,
Special Assessment, 6.75%, 5/01/34

 

 

2,820

 

 

1,930,995

 

Highlands County Health Facilities Authority, RB,
Adventist Health, Series G, 5.13%, 11/15/16 (c)

 

 

35

 

 

40,368

 

Midtown Miami Community Development District,
Special Assessment:

 

 

 

 

 

 

 

Series A, 6.00%, 5/01/24

 

 

3,330

 

 

2,786,944

 

Series B, 6.50%, 5/01/37

 

 

1,950

 

 

1,622,926

 

Panther Trace II Community Development District,
Special Assessment Bonds, 5.13%, 11/01/13

 

 

2,135

 

 

1,437,688

 

Portofino Shores Community Development District,
Special Assessment, Series A, 6.40%, 5/01/34

 

 

1,085

 

 

1,004,460

 

South Lake County Hospital District, RB, South Lake
Hospital Inc, 6.63%, 10/01/23

 

 

2,390

 

 

2,453,885

 

Sterling Hill Community Development District, Special
Assessment, Series B, 5.50%, 11/01/10

 

 

165

 

 

151,937

 

University of Florida Research Foundation Inc., RB
(AMBAC), 5.13%, 9/01/33

 

 

4,000

 

 

3,494,840

 

 

 

 

 

 




 

 

 

 

 

 

29,161,598

 









Georgia — 0.8%

 

 

 

 

 

 

 

Fulton County Development Authority, Refunding RB,
Robert Woodruff, Series B, 5.25%, 3/15/24

 

 

4,000

 

 

4,165,040

 









Guam — 0.8%

 

 

 

 

 

 

 

Territory of Guam, Series A:

 

 

 

 

 

 

 

GO, 6.00%, 11/15/19

 

 

1,530

 

 

1,593,174

 

RB, Section 30, 5.38%, 12/01/24

 

 

2,620

 

 

2,633,048

 

 

 

 

 

 




 

 

 

 

 

 

4,226,222

 









Idaho — 0.8%

 

 

 

 

 

 

 

City of Boise City, Idaho, COP, AMT (MBIA), 5.50%,
9/01/25

 

 

4,000

 

 

4,000,320

 

Idaho Housing & Finance Association, RB, S/F Mortgage,
Series F-2 (FHA), AMT, 5.85%, 7/01/15

 

 

240

 

 

247,834

 

 

 

 

 

 




 

 

 

 

 

 

4,248,154

 










 

 

 

See Notes to Financial Statements.


40

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 


Illinois — 6.9%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

$

8,130

 

$

8,350,160

 

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

 

 

2,510

 

 

2,570,039

 

City of Chicago, Illinois, Refunding RB, General,
Series Airport, 3rd Lien, Series A-2, AMT (FSA),
5.75%, 1/01/19

 

 

2,550

 

 

2,649,144

 

Du Page & Will Counties Community School District
No. 204 Indian, GO, School Building, Series A (MBIA),
5.25%, 12/30/22

 

 

8,650

 

 

9,399,003

 

Illinois Finance Authority, RB, Community Rehabilitation
Providers Facilities, Series A, 6.63%, 7/01/32

 

 

6,930

 

 

6,938,801

 

Village of Hodgkins, Illinois, RB, MBM Project, AMT,
5.90%, 11/01/17

 

 

6,000

 

 

6,002,460

 

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

 

 

1,580

 

 

1,381,473

 

 

 

 

 

 




 

 

 

 

 

 

37,291,080

 









Indiana — 0.4%

 

 

 

 

 

 

 

County of Jasper, Indiana, Refunding RB,
Northern, Series C (MBIA), 5.85%, 4/01/19

 

 

2,000

 

 

2,154,400

 









Kansas — 0.9%

 

 

 

 

 

 

 

City of Dodge City, Kansas, RB (AGC), 4.00%, 6/01/24

 

 

2,245

 

 

2,196,822

 

Kansas Development Finance Authority, RB:

 

 

 

 

 

 

 

Adventist Health, 5.00%, 11/15/23

 

 

1,500

 

 

1,518,870

 

Adventist Sunbelt, Series D, 5.00%, 11/15/24

 

 

1,000

 

 

1,006,560

 

 

 

 

 

 




 

 

 

 

 

 

4,722,252

 









Kentucky — 1.6%

 

 

 

 

 

 

 

Kentucky State Property & Buildings Commission,
Kentucky, Refunding RB, Project No. 93 (AGC),
5.25%, 2/01/24

 

 

8,000

 

 

8,655,840

 









Louisiana — 3.0%

 

 

 

 

 

 

 

Louisiana Local Government Environmental Facilities &
Community Development Authority, RB, Facilities
Corporation Project, Series B (AGC), 4.25%,
10/01/28

 

 

1,300

 

 

1,213,251

 

Louisiana Public Facilities Authority, RB (MBIA):

 

 

 

 

 

 

 

Nineteenth Judicial District Court, 5.50%, 6/01/41

 

 

2,000

 

 

2,040,000

 

University New Orleans Research and Technology,
5.25%, 3/01/26

 

 

6,965

 

 

7,080,410

 

New Orleans Aviation Board, Louisiana, Refunding RB,
Restructuring Garbs, Series A-2 (AGC), 6.00%,
1/01/23

 

 

850

 

 

949,612

 

Port Lake Charles, Louisiana, Refunding RB, Continental
Grain Co. Project, 6.50%, 1/01/17

 

 

5,000

 

 

4,904,600

 

 

 

 

 

 




 

 

 

 

 

 

16,187,873

 









Maine — 0.3%

 

 

 

 

 

 

 

Portland Housing Development Corp., RB, Senior Living,
Series A, 6.00%, 2/01/34

 

 

1,965

 

 

1,762,133

 









Maryland — 0.1%

 

 

 

 

 

 

 

Maryland Industrial Development Financing Authority,
RB, Our Lady of Good Counsel School, Series A,
6.00%, 5/01/35

 

 

500

 

 

437,720

 









Massachusetts — 1.5%

 

 

 

 

 

 

 

Massachusetts Bay Transportation Authority, RB, Senior,
Series A, 5.00%, 7/01/12 (c)

 

 

4,560

 

 

5,039,210

 

Massachusetts Development Finance Agency, RB,
Ogden Haverhill Project, Series B, AMT:

 

 

 

 

 

 

 

5.35%, 12/01/15

 

 

1,210

 

 

1,111,216

 

5.50%, 12/01/19

 

 

2,000

 

 

1,776,120

 

 

 

 

 

 




 

 

 

 

 

 

7,926,546

 









 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 


Michigan — 3.9%

 

 

 

 

 

 

 

City of Detroit, MI, Refunding RB, Second Lien, Series C
(BHAC), 5.75%, 7/01/26

 

$

4,235

 

$

4,598,575

 

Michigan State Hospital Finance Authority, Michigan,
RB, Hospital, Oakwood Obligation Group, Series A,
6.00%, 4/01/22

 

 

4,795

 

 

4,852,204

 

Michigan State Hospital Finance Authority, Refunding
RB, Hospital, Henry Ford Health, 5.25%, 11/15/24 (d)

 

 

4,400

 

 

4,244,680

 

Wayne County Airport Authority, RB, Detroit Metropolitan
Wayne County Airport, AMT (AGC), 4.75%, 12/01/18

 

 

7,665

 

 

7,592,796

 

 

 

 

 

 




 

 

 

 

 

 

21,288,255

 









Minnesota — 1.0%

 

 

 

 

 

 

 

Minneapolis & Saint Paul Housing & Redevelopment
Authority, RB, Healthpartners Obligation Group Project:

 

 

 

 

 

 

 

6.00%, 12/01/19

 

 

1,000

 

 

1,022,780

 

6.00%, 12/01/21

 

 

2,545

 

 

2,589,919

 

Minnesota State Municipal Power Agency, RB, Series A,
5.25%, 10/01/24

 

 

2,000

 

 

2,068,140

 

 

 

 

 

 




 

 

 

 

 

 

5,680,839

 









Mississippi — 2.7%

 

 

 

 

 

 

 

Mississippi Business Finance Corp., RB, System Energy
Resource Inc. Project, 5.88%, 4/01/22

 

 

5,000

 

 

5,005,150

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project, 5.90%,
5/01/22

 

 

2,910

 

 

2,912,997

 

Mississippi Hospital Equipment & Facilities Authority,
RB, Baptist Memorial Healthcare, Series B2, 4.50%,
9/01/23 (d)

 

 

6,750

 

 

6,428,362

 

 

 

 

 

 




 

 

 

 

 

 

14,346,509

 









Nevada — 1.2%

 

 

 

 

 

 

 

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

 

 

2,155

 

 

2,029,751

 

County of Humboldt, Nevada, Refunding RB, Idaho
Power Company Project, 5.15%, 12/01/24

 

 

4,300

 

 

4,399,416

 

 

 

 

 

 




 

 

 

 

 

 

6,429,167

 









New Jersey — 12.8%

 

 

 

 

 

 

 

Garden State Preservation Trust, RB, 2005 Series A (FSA):

 

 

 

 

 

 

 

5.80%, 11/01/21

 

 

3,635

 

 

4,204,968

 

5.80%, 11/01/23

 

 

5,050

 

 

5,840,678

 

New Jersey EDA, RB, Cigarette Tax, 5.75%, 6/15/29

 

 

9,810

 

 

9,441,144

 

New Jersey EDA, RB, Continental Airlines Inc. Project,
AMT, 6.63%, 9/15/12

 

 

5,540

 

 

5,426,485

 

New Jersey EDA, RB, Motor Vehicle Surcharge, Series A
(MBIA), 5.25%, 7/01/33

 

 

17,900

 

 

18,060,742

 

New Jersey EDA, RB, Series B, New Jersey, American
Water, AMT (AMBAC), 5.13%, 4/01/22

 

 

5,000

 

 

4,956,750

 

New Jersey EDA, Refunding RB, School Facilities
Construction, Series AA, 4.25%, 12/15/24

 

 

5,000

 

 

4,972,200

 

New Jersey State Housing & Mortgage Finance Agency,
RB, S/F Housing, Series X, AMT, 5.10%, 10/01/23

 

 

4,500

 

 

4,581,945

 

New Jersey Transportation Trust Fund Authority,
New Jersey, RB, Transportation System (AMBAC):

 

 

 

 

 

 

 

CAB, Series C, 5.70%, 12/15/25 (e)

 

 

9,450

 

 

3,755,713

 

Series D, 5.00%, 6/15/18

 

 

4,215

 

 

4,493,232

 

South Jersey Port Corp., RB, Marine Terminal, Series O-1
(AGC), 4.63%, 1/01/23

 

 

1,375

 

 

1,425,380

 

University of Medicine & Dentistry of New Jersey, RB,
Series A (AMBAC):

 

 

 

 

 

 

 

5.50%, 12/01/23

 

 

1,000

 

 

1,011,240

 

5.50%, 12/01/27

 

 

1,000

 

 

1,003,600

 

 

 

 

 

 




 

 

 

 

 

 

69,174,077

 










 

 

 

See Notes to Financial Statements.

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

41




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 


New Mexico — 1.9%

 

 

 

 

 

 

 

New Mexico Finance Authority, RB, Senior Lien, Series A
(MBIA), 5.13%, 6/15/18

 

$

9,520

 

$

10,506,177

 









New York — 27.1%

 

 

 

 

 

 

 

City of New York, New York, GO:

 

 

 

 

 

 

 

Series D1, 5.13%, 12/01/26

 

 

4,615

 

 

4,853,226

 

Sub-Series I-1, 5.50%, 4/01/21

 

 

5,000

 

 

5,562,900

 

Dutchess County Industrial Development Agency,
New York, RB, Saint Francis Hospital, Series B,
7.25%, 3/01/19

 

 

965

 

 

966,071

 

Long Island Power Authority, RB, Series A, 5.50%,
4/01/24

 

 

1,475

 

 

1,590,699

 

Metropolitan Transportation Authority, RB:

 

 

 

 

 

 

 

Series A, 5.00%, 11/15/25

 

 

1,980

 

 

2,043,974

 

Series B, 5.25%, 11/15/25

 

 

4,000

 

 

4,317,320

 

New York City Industrial Development Agency, RB,
Continental Airlines Inc., AMT, 8.38%, 11/01/16

 

 

3,500

 

 

2,580,830

 

New York City Industrial Development Agency, RB,
Special Needs Facilities Pooled Program, C-1,
6.80%, 7/01/19

 

 

2,055

 

 

2,002,330

 

New York City Industrial Development Agency,
Refunding RB, NY Stock Exchange Project, Series A,
4.25%, 5/01/24

 

 

2,740

 

 

2,670,459

 

New York City Transitional Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2007, Series S-1 (MBIA), 5.00%, 7/15/24

 

 

500

 

 

523,325

 

Fiscal 2009, Series S-3, 5.00%, 1/15/23

 

 

3,560

 

 

3,786,345

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Mental Health Services Facilities Improvement,
Series A (FSA), 5.00%, 2/15/22

 

 

4,000

 

 

4,204,120

 

Mount Sinai Health, Series A, 6.63%, 7/01/19

 

 

1,330

 

 

1,362,479

 

Mount Sinai Medical School, Series A (MBIA),
5.15%, 7/01/24

 

 

1,000

 

 

1,031,120

 

Municipal Health Facilities, Lease,
Sub-Series 2-4, 5.00%, 1/15/27

 

 

6,900

 

 

7,172,550

 

North Shore L I Jewish Group, 5.00%, 5/01/12

 

 

1,000

 

 

1,075,600

 

North Shore L I Jewish, Series E, 5.00%, 5/01/22

 

 

650

 

 

664,807

 

North Shore L I Jewish, Series E, 5.00%, 5/01/23

 

 

2,160

 

 

2,190,996

 

North Shore, Series A, 5.50%, 5/01/30

 

 

1,495

 

 

1,537,323

 

School District Financing Program, Series D (MBIA),
5.25%, 10/01/23

 

 

9,540

 

 

9,717,635

 

University Rochester, Series A, 4.00%, 7/01/24

 

 

1,640

 

 

1,593,768

 

University Rochester, Series C, 4.00%, 7/01/24

 

 

625

 

 

607,381

 

Yeshiva University, 4.00%, 9/01/23

 

 

2,860

 

 

2,771,083

 

Yeshiva University, 4.25%, 9/01/24

 

 

2,750

 

 

2,719,145

 

New York State Dormitory Authority, Refunding RB,
Construction Service Project, Series A, 4.00%,
7/01/25

 

 

2,345

 

 

2,241,539

 

New York State Energy Research & Development
Authority, RB, Lilco Project, Series A (MBIA), 5.15%,
3/01/16

 

 

2,310

 

 

2,317,946

 

New York State Environmental Facilities Corp., New York,
RB, Environment, Series A (FGIC), 5.25%,
12/15/14 (c)

 

 

7,380

 

 

8,622,571

 

New York State Thruway Authority, RB, Local Highway &
Bridge, 5.50%, 4/01/17

 

 

60

 

 

64,912

 

New York State Urban Development Corp., Refunding
RB, Service Contract, Series B, 5.00%, 1/01/21

 

 

8,000

 

 

8,532,480

 

Port Authority of New York & New Jersey, RB, Consolidated:

 

 

 

 

 

 

 

131 Senior Series (CIFG), AMT, 5.00%, 12/15/17

 

 

5,000

 

 

5,178,350

 

153rd, 5.00%, 7/15/24

 

 

2,010

 

 

2,165,494

 

Sales Tax Asset Receivable Corp., RB, Series A (MBIA),
5.00%, 10/15/20

 

 

9,070

 

 

9,986,705

 

Tobacco Settlement Financing Corp., New York, RB,
Asset Backed, Series A-4 (AMBAC), 5.25%, 6/01/22

 

 

6,510

 

 

6,775,803

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 

Tobacco Settlement Financing Corp., New York, RB:

 

 

 

 

 

 

 

Series B-1C, 5.50%, 6/01/21

 

$

7,000

 

$

7,357,070

 

Series B-1C, 5.50%, 6/01/22

 

 

10,000

 

 

10,487,600

 

Series C-1 (FGIC), 5.50%, 6/01/20

 

 

9,750

 

 

10,277,378

 

United Nations Development Corp. New York, Refunding
RB, Series A, 4.25%, 7/01/24

 

 

4,985

 

 

4,867,653

 

 

 

 

 

 




 

 

 

 

 

 

146,420,987

 









North Carolina — 1.2%

 

 

 

 

 

 

 

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

 

 

1,834,807

 

North Carolina Eastern Municipal Power Agency,
North Carolina, RB, Series B, 5.00%, 1/01/26

 

 

1,925

 

 

1,960,305

 

North Carolina Municipal Power Agency No. 1 Catawba,
North Carolina, RB, Series A (MBIA), 5.25%, 1/01/20

 

 

2,700

 

 

2,793,690

 

 

 

 

 

 




 

 

 

 

 

 

6,588,802

 









Northern Mariana Island — 0.9%

 

 

 

 

 

 

 

Commonwealth of the Northern Mariana Islands, GO,
Series A:

 

 

 

 

 

 

 

6.75%, 10/01/13 (c)

 

 

3,900

 

 

4,575,831

 

6.75%, 10/01/33

 

 

250

 

 

227,963

 

 

 

 

 

 




 

 

 

 

 

 

4,803,794

 









Ohio — 0.8%

 

 

 

 

 

 

 

Ohio Air Quality Development Authority, RB, Ohio Valley
Electric Corp., 5.63%, 10/01/19

 

 

4,300

 

 

4,287,186

 









Pennsylvania — 7.6%

 

 

 

 

 

 

 

City of Philadelphia, Pennsylvania, RB (FSA):

 

 

 

 

 

 

 

1975 General Ordinance, 17th Series, 5.38%,
7/01/22

 

 

7,490

 

 

7,753,723

 

Series A, AMT, 5.00%, 6/15/20

 

 

2,895

 

 

2,931,622

 

City of Philadelphia, Pennsylvania, Refunding RB,
Series B, AMT (FSA), 5.00%, 6/15/19

 

 

3,905

 

 

3,984,662

 

City of Pittsburgh, Pennsylvania, GO, Refunding, Series B
(FSA), 5.25%, 9/01/17

 

 

9,630

 

 

10,264,328

 

City of Pittsburgh, Pennsylvania, GO, Series C (FSA),
5.25%, 9/01/18

 

 

6,430

 

 

6,781,464

 

Montgomery County IDA, Pennsylvania, RB, Mortgage,
Whitemarsh Continuing Care, 6.00%, 2/01/21

 

 

3,500

 

 

2,717,085

 

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

 

 

7,710

 

 

4,881,972

 

Sayre, Pennsylvania, Health Care Facilities Authority, RB
(Guthrie Health), Series A:

 

 

 

 

 

 

 

6.25%, 12/01/15

 

 

455

 

 

474,934

 

6.25%, 12/01/16

 

 

785

 

 

816,761

 

6.25%, 12/01/18

 

 

385

 

 

398,648

 

 

 

 

 

 




 

 

 

 

 

 

41,005,199

 









Puerto Rico — 14.4%

 

 

 

 

 

 

 

Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien,
Series A (AGC), 5.00%, 7/01/25

 

 

3,215

 

 

3,280,522

 

Puerto Rico Electric Power Authority, RB:

 

 

 

 

 

 

 

Series NN, 5.50%, 7/01/13 (c)

 

 

17,935

 

 

20,535,037

 

Series TT, 5.00%, 7/01/27

 

 

8,500

 

 

8,381,680

 

Series WW, 5.50%, 7/01/38

 

 

3,000

 

 

3,010,020

 

Puerto Rico HFA, RB, Capital Fund Modernization,
5.13%, 12/01/27

 

 

13,900

 

 

13,874,980

 

Puerto Rico Highway & Transportation Authority, RB:

 

 

 

 

 

 

 

(FGIC), 5.75%, 7/01/21

 

 

4,375

 

 

4,429,338

 

Series Y (FSA), 6.25%, 7/01/21

 

 

3,000

 

 

3,291,300

 


 

 

 

See Notes to Financial Statements.

 




42

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Puerto Rico (concluded)

 

 

 

 

 

 

 

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

 

$

5,390

 

$

4,026,384

 

Puerto Rico Public Buildings Authority, RB,
Government Facilities:

 

 

 

 

 

 

 

Series D, 5.25%, 7/01/27

 

 

3,930

 

 

3,797,991

 

Series I, 5.50%, 7/01/14 (c)

 

 

8,000

 

 

9,142,240

 

Puerto Rico Public Buildings Authority, Refunding RB,
Government Facilities, M-3 (MBIA), 6.00%, 7/01/28

 

 

1,900

 

 

1,959,356

 

Puerto Rico Public Finance Corp., RB, Commonwealth,
Series E, 5.50%, 2/01/12 (c)

 

 

2,000

 

 

2,191,000

 

 

 

 

 

 




 

 

 

 

 

 

77,919,848

 









Rhode Island — 0.5%

 

 

 

 

 

 

 

Rhode Island Health & Educational Building Corp.,
RB, University Rhode Island, Series A (AGC), 4.75%,
9/15/24

 

 

2,500

 

 

2,555,275

 









South Carolina — 2.3%

 

 

 

 

 

 

 

County of Georgetown, South Carolina, Refunding RB,
International Paper Co. Project, Series A, 5.13%,
2/01/12

 

 

8,000

 

 

8,078,960

 

Medical University Hospital Authority, Refunding RB,
Mortgage, Series A (FHA), 5.25%, 8/15/23

 

 

4,250

 

 

4,363,602

 

 

 

 

 

 




 

 

 

 

 

 

12,442,562

 









South Dakota — 0.4%

 

 

 

 

 

 

 

Educational Enhancement Funding Corp., RB, Series B,
6.50%, 6/01/32

 

 

2,200

 

 

2,124,210

 









Tennessee — 2.2%

 

 

 

 

 

 

 

Johnson City Health & Educational Facilities Board, RB,
Appalachian Christian Village Project, Series A, 6.00%,
2/15/19

 

 

1,800

 

 

1,770,930

 

Memphis-Shelby County Sports Authority Inc.,
Refunding RB, Memphis Arena Project:

 

 

 

 

 

 

 

Series A, 5.00%, 11/01/23

 

 

2,695

 

 

2,726,747

 

Series A, 5.25%, 11/01/26

 

 

2,055

 

 

2,061,350

 

Series B, 5.00%, 11/01/22

 

 

1,000

 

 

1,014,950

 

Shelby County Health Educational & Housing Facilities
Board, RB, Germantown Village, Series A:

 

 

 

 

 

 

 

6.75%, 12/01/18

 

 

3,550

 

 

3,305,867

 

7.00%, 12/01/23

 

 

1,450

 

 

1,317,296

 

 

 

 

 

 




 

 

 

 

 

 

12,197,140

 









Texas — 7.2%

 

 

 

 

 

 

 

Bexar County Health Facilities Development Corp.,
Texas, RB, Army Retirement Residence Project,
6.30%, 7/01/12 (c)

 

 

1,500

 

 

1,701,660

 

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

 

 

7,000

 

 

6,304,550

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., RB, Series 2001-A-1, AMT,
6.15%, 1/01/16

 

 

4,000

 

 

3,903,600

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., Refunding RB, AMT:

 

 

 

 

 

 

 

Joint, Sub-Series A-2, (MBIA), 6.10%, 11/01/24

 

 

1,500

 

 

1,500,210

 

Series A, Sub-Series 2, 9.00%, 5/01/29

 

 

3,000

 

 

2,779,560

 

Gulf Coast IDA, RB, Citgo Petroleum Corp. Project, AMT,
7.50%, 5/01/25

 

 

2,440

 

 

2,475,356

 

Gulf Coast Waste Disposal Authority, Refunding RB,
Series A, AMT, 6.10%, 8/01/24

 

 

2,000

 

 

2,002,280

 

Houston Health Facilities Development Corp., RB,
Buckingham Senior Living Community, Series A,
7.00%, 2/15/14 (c)

 

 

1,500

 

 

1,796,655

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

Lower Colorado River Authority, RB, Samsung Austin
Semiconductor, AMT, 6.95%, 4/01/30

 

$

7,420

 

$

7,440,553

 

Sabine River Authority, Texas, Refunding RB, TXU
Electric Co. Project, Series B, AMT, 5.75%, 5/01/30

 

 

5,000

 

 

4,503,250

 

Texas State Affordable Housing Corp., Texas, RB,
Professional Educators Program, Series B, AMT
(GNMA), 5.95%, 12/01/39

 

 

4,315

 

 

4,451,095

 

 

 

 

 

 




 

 

 

 

 

 

38,858,769

 









U.S. Virgin Islands — 1.6%

 

 

 

 

 

 

 

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

 

 

1,860

 

 

1,887,361

 

Virgin Islands Public Finance Authority, RB, Senior
Secured, Hovensa Refinery, AMT, 6.13%, 7/01/22

 

 

6,750

 

 

6,856,988

 

 

 

 

 

 




 

 

 

 

 

 

8,744,349

 









Vermont — 0.6%

 

 

 

 

 

 

 

Vermont Educational & Health Buildings Financing
Agency, RB, Hospital, Fletcher Allen Health, Series A
(AMBAC), 6.00%, 12/01/23

 

 

3,000

 

 

3,008,520

 









Virginia — 3.0%

 

 

 

 

 

 

 

James City County IDA, Virginia, Refunding RB,
First Mortgage, Williamsburg, Series A:

 

 

 

 

 

 

 

5.75%, 3/01/17

 

 

3,285

 

 

3,177,022

 

6.00%, 3/01/23

 

 

1,150

 

 

1,027,387

 

Tobacco Settlement Financing Corp., Virginia, RB,
Asset-Backed, 5.63%, 6/01/15 (c)

 

 

7,800

 

 

9,051,354

 

Virginia Public School Authority, Refunding RB, School
Financing, Series C, 3.50%, 8/01/25

 

 

3,000

 

 

2,791,830

 

 

 

 

 

 




 

 

 

 

 

 

16,047,593

 









West Virginia — 0.7%

 

 

 

 

 

 

 

West Virginia Hospital Finance Authority, West Virginia,
Refunding RB, Series A, 5.13%, 9/01/23

 

 

4,000

 

 

3,962,600

 









Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Housing & EDA, RB, Series C, AMT, 4.85%,
9/01/26

 

 

2,000

 

 

1,951,320

 









Total Municipal Bonds — 143.0%

 

 

 

 

 

772,507,742

 









 

 

 

 

 

 

 

 









 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

 

 

 

 

 

 









California — 5.2%

 

 

 

 

 

 

 

City of San Jose, California, GO, Libraries, Parks, Public
Safety Project (MBIA), 5.00%, 9/01/30

 

 

3,101

 

 

3,163,923

 

Peralta Community College District, California, GO,
Election 2000, Series D (FSA), 5.00%, 8/01/30

 

 

10,140

 

 

10,409,318

 

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

 

 

9,028

 

 

9,468,770

 

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

 

 

4,875

 

 

4,997,411

 

 

 

 

 

 




 

 

 

 

 

 

28,039,422

 









Illinois — 2.5%

 

 

 

 

 

 

 

McHenry County Conservation District, Illinois, GO
(FSA), 5.13%, 2/01/27

 

 

12,695

 

 

13,471,400

 









Massachusetts — 1.6%

 

 

 

 

 

 

 

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

 

 

8,338

 

 

8,612,704

 









New Jersey — 2.2%

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund Authority,
New Jersey, RB, Transportation System, Series D
(FSA), 5.00%, 6/15/19

 

 

11,120

 

 

11,725,706

 










 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

43




 

 


 

 

Schedule of Investments (concluded)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

Par 
(000)

 

Value

 









New York — 5.8%

 

 

 

 

 

 

 

City of New York, New York, GO, Sub-Series B-1, 5.25%,
9/01/22

 

$

8,250

 

$

8,972,370

 

New York State Urban Development Corp., RB, State
Personal Income Tax, Series A-1 (MBIA), 5.25%,
3/15/34

 

 

10,000

 

 

10,262,400

 

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

 

 

11,101

 

 

12,147,629

 

 

 

 

 

 




 

 

 

 

 

 

31,382,399

 









Washington — 2.0%

 

 

 

 

 

 

 

Snohomish County School District No. 15 Edmonds,
Washington, GO (MBIA), 5.00%, 12/01/19

 

 

10,000

 

 

10,855,000

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 19.3%

 

 

 

 

 

104,086,631

 









Total Long-Term Investments
(Cost — $877,724,310) — 162.3%

 

 

 

 

 

876,594,373

 









 

 

 

 

 

 

 

 


 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.23% (g)(h)

 

 

8,201,224

 

 

8,201,224

 









Total Short-Term Securities
(Cost — $8,201,224) — 1.5%

 

 

 

 

 

8,201,224

 









Total Investments (Cost — $885,925,534*) — 163.8%

 

 

 

 

 

884,795,597

 

Other Assets Less Liabilities — 0.0%

 

 

 

 

 

65,799

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (10.6)%

 

 

 

 

 

(57,405,762

)

Preferred Shares, at Redemption Value — (53.2)%

 

 

 

 

 

(287,238,597

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

540,217,037

 

 

 

 

 

 




 









 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

828,079,283

 

 

 




Gross unrealized appreciation

 

$

23,794,888

 

Gross unrealized depreciation

 

 

(24,427,388

)

 

 




Net unrealized depreciation

 

$

(632,500

)

 

 





 

 

(a)

Non-income producing security.

 

 

(b)

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

 

 

(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 security transactions were as follows:


 

 

 

 

 

 

 

 







Counterparty

 

Value

 

Unrealized
Depreciation

 







Citigroup Global Markets, Inc.

 

$

4,244,680

 

$

(6,476

)

Merrill Lynch & Co.

 

$

6,428,363

 

$

(52,380

)










 

 

(e)

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

 

 

(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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 









Affiliate

 

Net
Activity

 

Income

 









FFI Institutional Tax-Exempt Fund

 

$

7,797,368

 

$

19,025

 










 

 

 

(h)

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 methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of October 31, 2009 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 






 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

8,201,224

 

Level 2 — Long-Term Investments1

 

 

876,594,373

 

Level 3

 

 

 

 

 




Total

 

$

884,795,597

 

 

 





 

 

1

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


 

 

 

See Notes to Financial Statements.

 




44

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

Schedule of Investments October 31, 2009 (Unaudited)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Alabama — 2.8%

 

 

 

 

 

 

 

Prattville Industrial Development Board, Alabama, RB,
International Paper Co. Projects, Series A, AMT,
4.75%, 12/01/30

 

$

3,500

 

$

2,758,210

 

Selma Industrial Development Board, Alabama, RB,
International Paper Co. Projects, Series A, AMT,
4.75%, 12/01/30

 

 

5,000

 

 

3,940,300

 

Tuscaloosa Special Care Facilities Financing Authority,
RB, Capstone Village, Series A, 5.88%, 8/01/36 (a)(b)

 

 

2,900

 

 

1,160,000

 

 

 

 

 

 




 

 

 

 

 

 

7,858,510

 









Arizona — 1.5%

 

 

 

 

 

 

 

Maricopa County Elementary School District
No. 3-Tempe Elementary, Arizona, GO, Refunding
(MBIA), 7.50%, 7/01/10

 

 

1,250

 

 

1,302,625

 

Maricopa County IDA, Arizona, RB, Arizona Charter
Schools Project 1, Series A, 6.75%, 7/01/29

 

 

1,000

 

 

681,790

 

Pima County IDA, RB:

 

 

 

 

 

 

 

Arizona Charter Schools Project, Series C, 6.75%,
7/01/31

 

 

1,940

 

 

1,716,376

 

Charter Schools, II, Series A, 6.75%, 7/01/21

 

 

495

 

 

460,766

 

 

 

 

 

 




 

 

 

 

 

 

4,161,557

 









California — 10.9%

 

 

 

 

 

 

 

California Health Facilities Financing Authority, RB,
Saint Joseph Health Sys, Series A, 5.75%, 7/01/39

 

 

2,200

 

 

2,280,718

 

City of Chula Vista, California, RB, San Diego Gas,
Series B, AMT, 5.00%, 12/01/27

 

 

2,500

 

 

2,327,975

 

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

 

 

9,475

 

 

9,616,651

 

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

 

 

14,925

 

 

16,495,259

 

 

 

 

 

 




 

 

 

 

 

 

30,720,603

 









Colorado — 4.9%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic Health
Initiatives, D, 6.25%, 10/01/33

 

 

1,060

 

 

1,144,853

 

Colorado Health Facilities Authority, Refunding RB,
Catholic Healthcare, Series A (c):

 

 

 

 

 

 

 

5.50%, 7/01/34

 

 

2,135

 

 

2,174,903

 

5.00%, 7/01/39

 

 

2,520

 

 

2,371,547

 

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

 

 

120

 

 

128,372

 

Elk Valley Public Improvement, RB, Public
Improvement Fee:

 

 

 

 

 

 

 

Series A, 7.35%, 9/01/31

 

 

3,025

 

 

2,731,030

 

Series B, 7.45%, 9/01/31

 

 

400

 

 

364,900

 

Plaza Metropolitan District No. 1, Colorado, TAN, Public
Improvement Fee, Tax Increment:

 

 

 

 

 

 

 

8.00%, 12/01/25

 

 

3,300

 

 

3,221,130

 

8.13%, 12/01/25

 

 

820

 

 

761,477

 

University of Colorado, RB, Series A, 5.75%, 6/01/28

 

 

750

 

 

847,883

 

 

 

 

 

 




 

 

 

 

 

 

13,746,095

 









Connecticut — 0.5%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,549,920

 









District of Columbia — 2.2%

 

 

 

 

 

 

 

Metropolitan Washington DC Airports Authority Dulles
Toll Road Revenue, RB, First Senior Lien, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

1,020

 

 

1,018,858

 

5.25%, 10/01/44

 

 

1,500

 

 

1,537,830

 

Metropolitan Washington DC Airports Authority Dulles Toll
Road Revenue, RB, Series 2nd Senior Lien-B (AGC) (d):

 

 

 

 

 

 

 

7.05%, 10/01/33

 

 

6,590

 

 

1,477,412

 

7.08%, 10/01/34

 

 

4,830

 

 

1,017,198

 

7.10%, 10/01/35

 

 

6,515

 

 

1,292,185

 

 

 

 

 

 




 

 

 

 

 

 

6,343,483

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Florida — 6.6%

 

 

 

 

 

 

 

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

 

$

9,820

 

$

9,184,744

 

Fiddlers Creek Community Development District No. 2,
Special Assessment:

 

 

 

 

 

 

 

Series A, 6.38%, 5/01/35

 

 

2,350

 

 

1,533,962

 

Series B, 5.75%, 5/01/13

 

 

400

 

 

361,560

 

Hillsborough County IDA, RB:

 

 

 

 

 

 

 

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

 

 

3,500

 

 

3,204,600

 

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

 

 

2,720

 

 

1,875,630

 

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

 

 

915

 

 

736,282

 

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

 

 

1,230

 

 

714,655

 

Preserve at Wilderness Lake Community Development
District, RB, Series A, 7.10%, 5/01/33

 

 

890

 

 

838,816

 

 

 

 

 

 




 

 

 

 

 

 

18,450,249

 









Georgia — 5.0%

 

 

 

 

 

 

 

Fulton County Residential Care Facilities for the Elderly
Authority, RB, Canterbury Court Project, Series A,
6.13%, 2/15/26

 

 

2,000

 

 

1,773,060

 

Gainesville Redevelopment Authority, Refunding RB,
Riverside Military Academy, 5.13%, 3/01/37

 

 

600

 

 

371,892

 

Metropolitan Atlanta Rapid Transit Authority, RB, 3rd
Series, 5.00%, 7/01/39

 

 

3,465

 

 

3,539,394

 

Municipal Electric Authority of Georgia, RB:

 

 

 

 

 

 

 

Series W, 6.60%, 1/01/18

 

 

5,590

 

 

6,460,251

 

Series W, 6.60%, 1/01/18 (e)

 

 

380

 

 

437,194

 

Series X, 6.50%, 1/01/20

 

 

1,250

 

 

1,460,250

 

 

 

 

 

 




 

 

 

 

 

 

14,042,041

 









Guam — 1.1%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

6.00%, 11/15/19

 

 

630

 

 

656,013

 

6.75%, 11/15/29

 

 

1,100

 

 

1,176,934

 

7.00%, 11/15/39

 

 

1,140

 

 

1,232,158

 

 

 

 

 

 




 

 

 

 

 

 

3,065,105

 









Idaho — 0.0%

 

 

 

 

 

 

 

Idaho Housing & Finance Association, RB, S/F Mortgage,
Senior, Series E-2, AMT, 6.90%, 1/01/27

 

 

50

 

 

50,079

 









Illinois — 9.5%

 

 

 

 

 

 

 

City of Chicago, Illinois, RB, Series C, AMT (GNMA),
7.00%, 3/01/32

 

 

145

 

 

148,770

 

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

 

 

800

 

 

721,648

 

City of Chicago, Illinois, TAN, Kingsbury Redevelopment
Project, Series A, 6.57%, 2/15/13

 

 

1,000

 

 

995,540

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Advocate Health Care Network, Series D,
6.50%, 11/01/38

 

 

5,000

 

 

5,496,550

 

Community Rehabilitation Providers Facilities,
Series A, 6.50%, 7/01/22

 

 

1,000

 

 

1,015,930

 

Friendship Village Schaumburg, Series A,
5.63%, 2/15/37

 

 

250

 

 

197,770

 

Illinois Finance Authority, Refunding RB, Community
Rehabilitation Providers, Series A, 6.00%, 7/01/15

 

 

550

 

 

550,379

 

Regional Transportation Authority, RB:

 

 

 

 

 

 

 

Series A (AMBAC), 7.20%, 11/01/20

 

 

1,500

 

 

1,833,150

 

Series A (MBIA), 6.70%, 11/01/21

 

 

7,000

 

 

8,360,730

 

Series C (MBIA), 7.75%, 6/01/20

 

 

2,500

 

 

3,171,125

 

Village of Hodgkins, Illinois, RB, MBM Project, AMT,
6.00%, 11/01/23

 

 

2,800

 

 

2,801,120

 

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

 

 

1,580

 

 

1,381,473

 

 

 

 

 

 




 

 

 

 

 

 

26,674,185

 










 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

45




 

 



 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Indiana — 7.7%

 

 

 

 

 

 

 

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

 

$

3,295

 

$

3,355,331

 

Indiana Finance Authority, RB, Refunding Duke Energy,
Series C, 4.95%, 10/01/40

 

 

2,910

 

 

2,774,510

 

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

 

 

840

 

 

814,111

 

Indiana Health & Educational Facilities Financing
Authority, RB, Clarian Health Obligation, Series A,
5.25%, 2/15/40

 

 

500

 

 

466,995

 

Indiana Transportation Finance Authority, Indiana,
RB, Series A:

 

 

 

 

 

 

 

7.25%, 6/01/15

 

 

320

 

 

341,037

 

6.80%, 12/01/16

 

 

3,775

 

 

4,327,358

 

Indianapolis Local Public Improvement Bond Bank, RB,
Series D, 6.75%, 2/01/14

 

 

8,750

 

 

9,676,888

 

 

 

 

 

 




 

 

 

 

 

 

21,756,230

 









Louisiana — 4.3%

 

 

 

 

 

 

 

Port Lake Charles, Louisiana, Refunding RB, Continental
Grain Co. Project, 6.50%, 1/01/17

 

 

8,500

 

 

8,337,820

 

Sabine River Authority, Louisiana, Refunding RB,
International Paper Co, 6.20%, 2/01/25

 

 

3,600

 

 

3,638,556

 

 

 

 

 

 




 

 

 

 

 

 

11,976,376

 









Maryland — 1.7%

 

 

 

 

 

 

 

County of Montgomery, Maryland, GO, West Germantown
Development District, Senior, Series A (Radian),
6.70%, 7/01/27

 

 

1,190

 

 

1,214,931

 

Maryland Community Development Administration, RB,
Residential, Series D, AMT, 4.90%, 9/01/42

 

 

1,500

 

 

1,400,400

 

Maryland Health & Higher Educational Facilities
Authority, RB, Series B:

 

 

 

 

 

 

 

King Farm Presbyterian Community, 5.00%,
1/01/17

 

 

1,055

 

 

952,992

 

University of Maryland Medical System (MBIA),
7.00%, 7/01/22

 

 

1,000

 

 

1,144,120

 

 

 

 

 

 




 

 

 

 

 

 

4,712,443

 









Massachusetts — 6.3%

 

 

 

 

 

 

 

Massachusetts HFA, Massachusetts, RB, Housing, AMT:

 

 

 

 

 

 

 

Series A, 5.20%, 12/01/37

 

 

3,000

 

 

2,939,100

 

Series D, 4.85%, 6/01/40

 

 

2,770

 

 

2,527,625

 

Series F, 5.70%, 6/01/40

 

 

2,235

 

 

2,239,582

 

Massachusetts Housing Finance Agency, Massachusetts,
RB, S/F, Series 130, AMT, 5.00%, 12/01/32

 

 

2,720

 

 

2,636,578

 

Massachusetts Water Resources Authority, RB, Series A,
6.50%, 7/15/19 (e)

 

 

6,000

 

 

7,299,300

 

 

 

 

 

 




 

 

 

 

 

 

17,642,185

 









Michigan — 6.6%

 

 

 

 

 

 

 

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

 

 

910

 

 

1,123,668

 

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

 

 

2,890

 

 

2,658,655

 

Michigan State Hospital Finance Authority, Michigan,
RB, McLaren Health Care, 5.75%, 5/15/38

 

 

8,560

 

 

8,617,095

 

Michigan State Hospital Finance Authority, Michigan,
Refunding RB, Henry Ford Health System, Series A,
5.25%, 11/15/46

 

 

7,050

 

 

6,114,747

 

 

 

 

 

 




 

 

 

 

 

 

18,514,165

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Mississippi — 6.6%

 

 

 

 

 

 

 

County of Lowndes, MS, Refunding RB, Weyerhaeuser Co.
Project, Series A, 6.80%, 4/01/22

 

$

5,850

 

$

6,317,123

 

Mississippi Business Finance Corp., RB, System Energy
Resource Inc. Project, 5.88%, 4/01/22

 

 

5,900

 

 

5,906,077

 

Mississippi Business Finance Corp., Refunding RB,
System Energy Resource Inc. Project, 5.90%,
5/01/22

 

 

5,215

 

 

5,220,371

 

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

 

 

1,065

 

 

1,123,607

 

 

 

 

 

 




 

 

 

 

 

 

18,567,178

 









Missouri — 0.0%

 

 

 

 

 

 

 

Missouri Housing Development Commission, RB, S/F,
Homeownership Loan, Series A-1, AMT (GNMA),
7.50%, 3/01/31

 

 

55

 

 

58,837

 









Nevada — 0.2%

 

 

 

 

 

 

 

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

 

 

595

 

 

560,419

 









New Jersey — 2.9%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax, 5.50%, 6/15/24

 

 

4,250

 

 

4,056,625

 

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

 

 

3,000

 

 

2,563,290

 

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

 

 

1,680

 

 

168

 

New Jersey State Housing & Mortgage Finance Agency,
RB, Series AA, 6.38%, 10/01/28

 

 

1,285

 

 

1,418,126

 

 

 

 

 

 




 

 

 

 

 

 

8,038,209

 









New Mexico — 1.1%

 

 

 

 

 

 

 

Farmington, New Mexico, RB, Tucson Electric Power Co.
San Juan, Series A, 6.95%, 10/01/20

 

 

3,160

 

 

3,162,370

 









New York — 8.3%

 

 

 

 

 

 

 

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

 

 

9,405

 

 

10,662,354

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

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

 

 

1,920

 

 

1,794,970

 

Series C, 6.80%, 6/01/28

 

 

690

 

 

717,752

 

Special Needs Facilities Pooled Program,
Series C-1, 6.50%, 7/01/17

 

 

890

 

 

860,247

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

6,700

 

 

6,957,146

 

New York Liberty Development Corp., RB, Goldman
Sachs Headquarters, 5.25%, 10/01/35

 

 

1,440

 

 

1,408,810

 

Westchester County Industrial Development Agency,
New York, RB, Special Needs Facilities Pooled
Program, Series E-1, 6.50%, 7/01/17

 

 

1,000

 

 

966,570

 

 

 

 

 

 




 

 

 

 

 

 

23,367,849

 









North Carolina — 2.4%

 

 

 

 

 

 

 

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

 

 

989,791

 

North Carolina Eastern Municipal Power Agency,
North Carolina, RB, Series B, 5.00%, 1/01/26

 

 

2,225

 

 

2,265,807

 

North Carolina Medical Care Commission,
North Carolina, RB, Carolina Village Project, 6.00%,
4/01/38

 

 

2,000

 

 

1,542,780

 

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

 

 

 

 

 

 

 

5.00%, 6/01/39

 

 

630

 

 

623,253

 

5.00%, 6/01/42

 

 

1,400

 

 

1,373,442

 

 

 

 

 

 




 

 

 

 

 

 

6,795,073

 










 

 

 

See Notes to Financial Statements.

 




46

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Ohio — 4.4%

 

 

 

 

 

 

 

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

 

$

12,500

 

$

10,069,750

 

County of Montgomery, Ohio, Refunding RB, Catholic
Healthcare, Series A, 5.00%, 5/01/39 (c)

 

 

2,520

 

 

2,382,736

 

 

 

 

 

 




 

 

 

 

 

 

12,452,486

 









Pennsylvania — 4.4%

 

 

 

 

 

 

 

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

 

 

880

 

 

782,294

 

Lancaster County Hospital Authority, RB, Brethren Village
Project, Series A, 6.50%, 7/01/40

 

 

2,000

 

 

1,784,880

 

Montgomery County IDA, Pennsylvania, RB, Mortgage,
Whitemarsh Continuing Care:

 

 

 

 

 

 

 

6.13%, 2/01/28

 

 

470

 

 

338,386

 

6.25%, 2/01/35

 

 

1,090

 

 

765,158

 

Pennsylvania Economic Development Financing
Authority, RB:

 

 

 

 

 

 

 

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

 

 

1,890

 

 

1,876,978

 

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

 

 

2,000

 

 

1,246,920

 

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

 

 

4,415

 

 

4,392,439

 

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

 

 

1,265

 

 

1,175,096

 

 

 

 

 

 




 

 

 

 

 

 

12,362,151

 









Puerto Rico — 1.6%

 

 

 

 

 

 

 

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

 

 

4,255

 

 

4,601,783

 









Tennessee — 0.3%

 

 

 

 

 

 

 

Johnson City Health & Educational Facilities Board,
RB, Appalachian Christian Village Project, Series A,
6.00%, 2/15/24

 

 

1,000

 

 

944,030

 









Texas — 10.2%

 

 

 

 

 

 

 

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

 

 

2,740

 

 

2,467,781

 

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

 

 

1,500

 

 

871,650

 

Brazos River Harbor Navigation District, RB, Dow
Chemical Co. Project, Series A-7, AMT, 6.63%,
5/15/33

 

 

5,800

 

 

5,830,566

 

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

 

 

4,820

 

 

4,474,358

 

Guadalupe-Blanco River Authority, RB, E.I. du Pont de
Nemours & Co. Project, AMT, 6.40%, 4/01/26

 

 

2,250

 

 

2,251,237

 

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

 

 

2,000

 

 

2,235,400

 

North Texas Toll Highway Authority, RB, First Tier,
Series A, 6.25%, 1/01/39

 

 

7,000

 

 

7,322,210

 

Port of Corpus Christi Authority of Nueces County, Texas,
RB, Celanese Project:

 

 

 

 

 

 

 

Series A, 6.45%, 11/01/30

 

 

800

 

 

799,088

 

Series B, AMT, 6.70%, 11/01/30

 

 

2,500

 

 

2,502,575

 

 

 

 

 

 




 

 

 

 

 

 

28,754,865

 









U.S. Virgin Islands — 2.2%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

6,088,260

 









Utah — 1.0%

 

 

 

 

 

 

 

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

 

 

2,780

 

 

2,693,764

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Virginia — 1.3%

 

 

 

 

 

 

 

Fairfax County EDA, RB, Goodwin House Inc.:

 

 

 

 

 

 

 

5.13%, 10/01/37

 

$

1,000

 

$

861,630

 

5.13%, 10/01/42

 

 

3,440

 

 

2,906,456

 

 

 

 

 

 




 

 

 

 

 

 

3,768,086

 









Washington — 3.6%

 

 

 

 

 

 

 

Energy Northwest, Refunding RB, Series B, 7.13%,
7/01/16

 

 

5,000

 

 

6,227,750

 

Washington Health Care Facilities Authority, Washington,
RB, Catholic Health Initiatives, D, 6.38%, 10/01/36

 

 

3,700

 

 

3,993,262

 

 

 

 

 

 




 

 

 

 

 

 

10,221,012

 









Wisconsin — 5.5%

 

 

 

 

 

 

 

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

 

 

7,100

 

 

7,795,161

 

Wisconsin Health & Educational Facilities Authority, RB,
SynergyHealth Inc., 6.00%, 11/15/32

 

 

2,215

 

 

2,265,347

 

Wisconsin Housing & EDA, Refunding RB, Series C,
AMT, 4.88%, 3/01/36

 

 

2,885

 

 

2,650,507

 

Wisconsin Housing & EDA, Wisconsin, RB, Series A,
AMT, 5.63%, 3/01/31

 

 

2,650

 

 

2,721,524

 

 

 

 

 

 




 

 

 

 

 

 

15,432,539

 









Total Municipal Bonds — 127.6%

 

 

 

 

 

359,132,137

 









 

 

 

 

 

 

 

 









 

Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

 

 

 

 

 

 









California — 3.5%

 

 

 

 

 

 

 

Bay Area Toll Authority, Refunding RB, San Francisco
Bay Area, Series F1, 5.63%, 4/01/44

 

 

3,271

 

 

3,522,241

 

California Educational Facilities Authority, RB, University
of Southern California, Series A, 5.25%, 10/01/39

 

 

2,610

 

 

2,750,444

 

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

 

 

2,290

 

 

2,350,502

 

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

 

 

1,077

 

 

1,130,545

 

 

 

 

 

 




 

 

 

 

 

 

9,753,732

 









Connecticut — 2.2%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB, Yale University, Series Z3, 5.05%,
7/01/42

 

 

6,000

 

 

6,304,200

 









Illinois — 6.2%

 

 

 

 

 

 

 

City of Chicago, Illinois, Refunding RB, Second Lien
(FSA), 5.25%, 11/01/33

 

 

1,320

 

 

1,381,247

 

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

 

 

2,999

 

 

3,206,690

 

Kane & De Kalb Counties Community Unit School
District No. 302, Illinois, GO, School (FGIC), 5.75%,
2/01/14

 

 

5,200

 

 

6,035,536

 

Metropolitan Pier & Exposition Authority, Illinois,
Refunding RB, McCormick Place Expansion, Series B
(MBIA), 5.75%, 6/15/23

 

 

6,400

 

 

6,913,536

 

 

 

 

 

 




 

 

 

 

 

 

17,537,009

 









Maryland — 0.8%

 

 

 

 

 

 

 

Maryland State Transportation Authority, RB,
Transportation Facilities Project (FSA), 5.00%,
7/01/41

 

 

2,290

 

 

2,374,638

 









Massachusetts — 3.7%

 

 

 

 

 

 

 

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

 

 

10,000

 

 

10,329,000

 










 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

47




 

 



 

Schedule of Investments (concluded)

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

 









New Hampshire — 0.8%

 

 

 

 

 

 

 

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

 

$

2,009

 

$

2,149,494

 









New York — 2.9%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Series DD, 5.00%, 6/15/37

 

 

6,299

 

 

6,449,408

 

Series FF-2, 5.50%, 6/15/40

 

 

1,575

 

 

1,706,784

 

 

 

 

 

 




 

 

 

 

 

 

8,156,192

 









North Carolina — 2.3%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency,
Refunding RB, Duke University Project, Series A,
5.00%, 10/01/41

 

 

6,239

 

 

6,418,947

 









Ohio — 5.9%

 

 

 

 

 

 

 

Ohio State Higher Educational Facility Commission,
Refunding RB, Hospital Cleveland Clinic Health,
Series A, 5.25%, 1/01/33

 

 

2,400

 

 

2,468,856

 

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

 

 

13,840

 

 

14,281,358

 

 

 

 

 

 




 

 

 

 

 

 

16,750,214

 









South Carolina — 1.9%

 

 

 

 

 

 

 

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

 

 

4,995

 

 

5,335,609

 









Texas — 7.0%

 

 

 

 

 

 

 

Harris County Health Facilities Development
Corporation, Refunding RB, School Health Care
System, Series B, 5.75%, 7/01/27

 

 

10,000

 

 

12,086,900

 

Texas Department of Housing & Community Affairs, RB,
Series B, AMT (GNMA), 5.25%, 9/01/32

 

 

4,822

 

 

4,827,235

 

Texas State University Systems, Texas, Refunding RB
(FSA), 5.00%, 3/15/30

 

 

2,743

 

 

2,823,166

 

 

 

 

 

 




 

 

 

 

 

 

19,737,301

 









Washington — 7.5%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation Authority,
Washington, RB, Series A:

 

 

 

 

 

 

 

5.00%, 11/01/36

 

 

9,000

 

 

9,223,650

 

(FSA), 5.00%, 11/01/32

 

 

7,693

 

 

7,939,152

 

Energy Northwest, Refunding RB, Columbia Generating,
Series A (MBIA), 5.75%, 7/01/18

 

 

3,500

 

 

3,817,450

 

 

 

 

 

 




 

 

 

 

 

 

20,980,252

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 44.7%

 

 

 

 

 

125,826,588

 









Total Long-Term Investments
(Cost — $479,442,323) — 172.3%

 

 

 

 

 

484,958,725

 









 

 

 

 

 

 

 

 









 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.23% (g)(h)

 

 

9,700,906

 

 

9,700,906

 









Total Short-Term Securities
(Cost — $9,700,906) — 3.4%

 

 

 

 

 

9,700,906

 









Total Investments (Cost — $489,143,229*) — 175.7%

 

 

 

 

 

494,659,631

 

Liabilities in Excess of Other Assets — (3.2)%

 

 

 

 

 

(8,924,191

)

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (22.8)%

 

 

 

 

 

(64,132,000

)

Preferred Shares, at Redemption Value — (49.7)%

 

 

 

 

 

(140,016,147

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

281,587,293

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

424,705,583

 

 

 

 




 

Gross unrealized appreciation

 

$

23,773,596

 

 

Gross unrealized depreciation

 

 

(17,886,379

)

 

 

 




 

Net unrealized appreciation

 

$

5,887,217

 

 

 

 





 

 

(a)

Non-income producing security.

 

 

(b)

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

 

 

(c)

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


 

 

 

 

 

 

 

 

 

 







 

Counterparty

 

Value

 

Unrealized
Depreciation

 

 







 

Merrill Lynch & Co.

 

$

814,111

 

$

(1,201

)

 

JPMorgan Securities

 

$

2,693,764

 

$

(42,506

)

 

Morgan Stanley Capital Services, Inc.

 

$

6,929,186

 

$

(113,534

)

 

Citigroup Global Markets, Inc.

 

$

1,996,695

 

$

(12,594

)

 

Jeffries & Co.

 

$

1,876,978

 

$

(31,525

)

 










 

 

(d)

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

 

 

(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, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







FFI Institutional Tax-Exempt Fund

 

$

9,700,906

 

$

4,695

 










 

 

(h)

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 methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of October 31, 2009 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities





 

 

Assets

 

 



Level 1 — Short-Term Securities

 

$

9,700,906

 

Level 2 — Long-Term Investments1

 

 

484,958,725

 

Level 3

 

 

 

 

 




Total

 

$

494,659,631

 

 

 





 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.

 




48

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 31, 2009 (Unaudited)

 

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

 

$

180,960,279

 

$

263,087,067

 

$

501,788,048

 

$

334,417,104

 

$

243,311,540

 

$

281,759,064

 

$

876,594,373

 

$

484,958,725

 

Investments at value — affiliated2

 

 

100,308

 

 

1,000,079

 

 

6,901,879

 

 

7,810,077

 

 

7,912,795

 

 

8,022,503

 

 

8,201,224

 

 

9,700,906

 

Cash

 

 

11,297

 

 

170,939

 

 

28,477

 

 

56,310

 

 

24,372

 

 

66,492

 

 

48,706

 

 

37,358

 

Cash held as collateral for financial futures contracts

 

 

 

 

 

 

 

 

157,680

 

 

118,800

 

 

 

 

 

 

216,000

 

Interest receivable

 

 

3,764,558

 

 

5,371,222

 

 

7,665,740

 

 

5,492,911

 

 

3,778,380

 

 

4,306,059

 

 

13,386,276

 

 

8,412,840

 

Investments sold receivable

 

 

1,120,000

 

 

1,750,000

 

 

3,849,707

 

 

695,824

 

 

115,284

 

 

 

 

2,204,400

 

 

1,507,677

 

Prepaid expenses

 

 

17,072

 

 

20,833

 

 

32,805

 

 

18,335

 

 

19,553

 

 

15,372

 

 

67,611

 

 

34,684

 

Other assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62,104

 

 

 

 

 

























Total assets

 

 

185,973,514

 

 

271,400,140

 

 

520,266,656

 

 

348,648,241

 

 

255,280,724

 

 

294,169,490

 

 

900,564,694

 

 

504,868,190

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Accrued Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Investments purchased payable

 

 

2,388,841

 

 

4,327,447

 

 

4,516,257

 

 

13,751,854

 

 

11,277,740

 

 

4,912,775

 

 

12,675,699

 

 

17,171,432

 

Income dividends payable — Common Shares

 

 

928,470

 

 

1,420,566

 

 

1,556,603

 

 

1,161,736

 

 

843,583

 

 

902,034

 

 

2,491,288

 

 

1,706,316

 

Investment advisory fees payable

 

 

105,270

 

 

129,758

 

 

227,735

 

 

162,196

 

 

118,078

 

 

118,394

 

 

389,490

 

 

215,555

 

Interest expense and fees payable

 

 

6,025

 

 

9,044

 

 

89,354

 

 

36,000

 

 

29,315

 

 

34,940

 

 

56,948

 

 

65,169

 

Other affiliates payable

 

 

1,120

 

 

1,544

 

 

3,376

 

 

2,128

 

 

1,317

 

 

1,676

 

 

5,720

 

 

3,048

 

Officer’s and Directors’ fees payable

 

 

561

 

 

816

 

 

648

 

 

674

 

 

507

 

 

554

 

 

68,437

 

 

904

 

Other accrued expenses payable

 

 

32,137

 

 

39,461

 

 

49,560

 

 

32,573

 

 

17,124

 

 

24,510

 

 

72,664

 

 

35,495

 

 

 

























Total accrued liabilities

 

 

3,462,424

 

 

5,928,636

 

 

6,443,533

 

 

15,147,161

 

 

12,287,664

 

 

5,994,883

 

 

15,760,246

 

 

19,197,919

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Trust certificates3

 

 

7,285,446

 

 

10,755,646

 

 

60,169,292

 

 

40,544,276

 

 

31,480,379

 

 

33,374,741

 

 

57,348,814

 

 

64,066,831

 

 

 

























Total Liabilities

 

 

10,747,870

 

 

16,684,282

 

 

66,612,825

 

 

55,691,437

 

 

43,768,043

 

 

39,369,624

 

 

73,109,060

 

 

83,264,750

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























$25,000 per share liquidation preference, plus unpaid dividends4,5

 

 

 

 

 

 

142,603,549

 

 

83,705,855

 

 

55,053,855

 

 

87,004,520

 

 

287,238,597

 

 

140,016,147

 

 

 

























Net Assets Applicable to Common Shareholders

 

$

175,225,644

 

$

254,715,858

 

$

311,050,282

 

$

209,250,949

 

$

156,458,826

 

$

167,795,346

 

$

540,217,037

 

$

281,587,293

 

 

 


























 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

49




 


 

Statements of Assets and Liabilities (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 31, 2009 (Unaudited)

 

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 capital6,7

 

$

196,411,985

 

$

296,664,822

 

$

316,511,557

 

$

207,184,538

 

$

154,187,843

 

$

173,564,169

 

$

540,501,506

 

$

279,239,492

 

Undistributed net investment income

 

 

1,489,667

 

 

1,177,494

 

 

4,847,328

 

 

3,276,340

 

 

3,015,178

 

 

3,306,168

 

 

6,920,662

 

 

4,058,947

 

Accumulated net realized gain (loss)

 

 

(11,641,432

)

 

(27,338,656

)

 

(10,290,127

)

 

732,565

 

 

(1,154,419

)

 

(13,188,939

)

 

(6,075,194

)

 

(7,227,548

)

Net unrealized appreciation/depreciation

 

 

(11,034,576

)

 

(15,787,802

)

 

(18,476

)

 

(1,942,494

)

 

410,224

 

 

4,113,948

 

 

(1,129,937

)

 

5,516,402

 

 

 

























Net Assets Applicable to Common Shareholders

 

$

175,225,644

 

$

254,715,858

 

$

311,050,282

 

$

209,250,949

 

$

156,458,826

 

$

167,795,346

 

$

540,217,037

 

$

281,587,293

 

 

 

























Net asset value per Common Share

 

$

8.78

 

$

12.10

 

$

10.59

 

$

15.04

 

$

14.00

 

$

13.02

 

$

14.20

 

$

13.78

 

 

 

























1 Investments at cost — unaffiliated

 

$

191,994,855

 

$

278,874,869

 

$

501,806,524

 

$

336,359,598

 

$

242,901,316

 

$

277,645,116

 

$

877,724,310

 

$

479,442,323

 

 

 

























2 Investments at cost — affiliated

 

$

100,308

 

$

1,000,079

 

$

6,901,879

 

$

7,810,077

 

$

7,912,795

 

$

8,022,503

 

$

8,201,224

 

$

9,700,906

 

 

 

























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

 

 

 

























6 Common Shares outstanding, $0.10 par value

 

 

19,967,092

 

 

21,045,429

 

 

29,369,874

 

 

13,913,010

 

 

11,173,277

 

 

12,886,200

 

 

38,034,934

 

 

20,434,917

 

 

 

























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.

 




50

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
October 31, 2009 (Unaudited)

 

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

 

$

6,464,704

 

$

9,344,780

 

$

13,100,320

 

$

9,256,053

 

$

6,726,641

 

$

7,187,203

 

$

22,535,298

 

$

13,899,090

 

Income — affiliated

 

 

1,451

 

 

2,096

 

 

14,453

 

 

10,028

 

 

7,305

 

 

21,985

 

 

21,728

 

 

4,695

 

 

 

























Total income

 

 

6,466,155

 

 

9,346,876

 

 

13,114,773

 

 

9,266,081

 

 

6,733,946

 

 

7,209,188

 

 

22,557,026

 

 

13,903,785

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Investment advisory

 

 

566,825

 

 

697,679

 

 

1,277,150

 

 

892,118

 

 

651,664

 

 

790,786

 

 

2,403,045

 

 

1,172,933

 

Accounting services

 

 

23,745

 

 

37,120

 

 

64,825

 

 

42,932

 

 

34,468

 

 

37,655

 

 

107,900

 

 

66,899

 

Transfer agent

 

 

21,468

 

 

19,995

 

 

30,698

 

 

24,057

 

 

21,097

 

 

25,586

 

 

46,770

 

 

30,245

 

Professional

 

 

19,431

 

 

21,558

 

 

28,445

 

 

33,381

 

 

31,149

 

 

33,267

 

 

49,599

 

 

33,632

 

Officer and Directors

 

 

10,602

 

 

15,420

 

 

18,723

 

 

13,107

 

 

9,891

 

 

10,545

 

 

41,458

 

 

16,190

 

Printing

 

 

5,415

 

 

7,451

 

 

14,570

 

 

17,535

 

 

10,046

 

 

8,341

 

 

21,906

 

 

12,896

 

Custodian

 

 

5,243

 

 

6,728

 

 

12,898

 

 

8,588

 

 

6,836

 

 

7,831

 

 

20,493

 

 

11,210

 

Registration

 

 

4,767

 

 

4,529

 

 

4,895

 

 

4,585

 

 

4,603

 

 

4,510

 

 

6,550

 

 

4,660

 

Commissions for Preferred Shares

 

 

 

 

 

 

107,900

 

 

64,971

 

 

42,704

 

 

66,337

 

 

221,126

 

 

105,024

 

Miscellaneous

 

 

20,314

 

 

15,309

 

 

42,335

 

 

34,420

 

 

30,399

 

 

31,274

 

 

59,655

 

 

44,967

 

 

 

























Total expenses excluding interest expense and fees

 

 

677,810

 

 

825,789

 

 

1,602,439

 

 

1,135,694

 

 

842,857

 

 

1,016,132

 

 

2,978,502

 

 

1,498,656

 

Interest expense and fees1

 

 

29,004

 

 

42,825

 

 

231,337

 

 

118,961

 

 

94,324

 

 

110,280

 

 

214,866

 

 

174,355

 

 

 

























Total expenses

 

 

706,814

 

 

868,614

 

 

1,833,776

 

 

1,254,655

 

 

937,181

 

 

1,126,412

 

 

3,193,368

 

 

1,673,011

 

Less fees waived by advisor

 

 

(746

)

 

(1,008

)

 

(8,205

)

 

(5,391

)

 

(3,900

)

 

(148,637

)

 

(334,414

)

 

(2,710

)

 

 

























Total expenses after fees waived

 

 

706,068

 

 

867,606

 

 

1,825,571

 

 

1,249,264

 

 

933,281

 

 

977,775

 

 

2,858,954

 

 

1,670,301

 

 

 

























Net investment income

 

 

5,760,087

 

 

8,479,270

 

 

11,289,202

 

 

8,016,817

 

 

5,800,665

 

 

6,231,413

 

 

19,698,072

 

 

12,233,484

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(530,857

)

 

(554,892

)

 

(2,036,094

)

 

314,346

 

 

384,438

 

 

(582,430

)

 

2,432,570

 

 

2,095,819

 

Financial futures contracts

 

 

(167,615

)

 

(247,779

)

 

88,907

 

 

(96,172

)

 

(64,854

)

 

 

 

 

 

146,716

 

 

 

























 

 

 

(698,472

)

 

(802,671

)

 

(1,947,187

)

 

218,174

 

 

319,584

 

 

(582,430

)

 

2,432,570

 

 

2,242,535

 

 

 

























Net change in unrealized appreciation/depreciation on investments

 

 

22,484,872

 

 

32,713,419

 

 

24,002,195

 

 

23,406,343

 

 

16,031,593

 

 

9,295,430

 

 

38,776,823

 

 

33,421,966

 

 

 

























Total realized and unrealized gain

 

 

21,786,400

 

 

31,910,748

 

 

22,055,008

 

 

23,624,517

 

 

16,351,177

 

 

8,713,000

 

 

41,209,393

 

 

35,664,501

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Dividends to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



























Net investment income

 

 

 

 

 

 

(546,763

)

 

(278,857

)

 

(148,193

)

 

(229,572

)

 

(2,274,471

)

 

(551,882

)

 

 

























Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

27,546,487

 

$

40,390,018

 

$

32,797,447

 

$

31,362,477

 

$

22,003,649

 

$

14,714,841

 

$

58,632,994

 

$

47,346,103

 

 

 

























     1     Related to tender option bond trusts.

 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

51




 


 

Statements of Changes in Net Assets


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Apex
Municipal Fund, Inc. (APX)

 

BlackRock MuniAssets
Fund, Inc. (MUA)

 

 

 


 


 

Increase (Decrease) in Net Assets:

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
July 1,
2008 to
April 30,
2009

 

Year Ended
June 30,
2008

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
June 1,
2008 to
April 30,
2009

 

Year Ended
May 31,
2008

 















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

5,760,087

 

$

9,485,633

 

$

10,673,792

 

$

8,479,270

 

$

15,102,071

 

$

16,146,294

 

Net realized gain (loss)

 

 

(698,472

)

 

(1,901,804

)

 

116,440

 

 

(802,671

)

 

(1,025,903

)

 

(1,507,632

)

Net change in unrealized appreciation/depreciation

 

 

22,484,872

 

 

(27,472,314

)

 

(15,493,679

)

 

32,713,419

 

 

(44,649,301

)

 

(19,985,195

)

 

 









 










Net increase (decrease) in net assets resulting from operations

 

 

27,546,487

 

 

(19,888,485

)

 

(4,703,447

)

 

40,390,018

 

 

(30,573,133

)

 

(5,346,533

)

 

 









 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Dividends and Distributions to
Shareholders From





















Net investment income

 

 

(5,566,999

)

 

(9,259,509

)

 

(11,460,645

)

 

(8,512,091

)

 

(15,527,663

)

 

(17,002,831

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(65,858

)

 

 









 










Decrease in net assets resulting from dividends and distributions to shareholders

 

 

(5,566,999

)

 

(9,259,509

)

 

(11,460,645

)

 

(8,512,091

)

 

(15,527,663

)

 

(17,068,689

)

 

 









 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital Share Transactions





















Reinvestment of common dividends

 

 

285,610

 

 

452,841

 

 

993,437

 

 

938,476

 

 

1,086,978

 

 

1,961,372

 

 

 









 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total increase (decrease) in net assets

 

 

22,265,098

 

 

(28,695,153

)

 

(15,170,655

)

 

32,816,403

 

 

(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

 

$

175,225,644

 

$

152,960,546

 

$

181,655,699

 

$

254,715,858

 

$

221,899,455

 

$

266,913,273

 

 

 









 










Undistributed net investment income

 

$

1,489,667

 

$

1,296,579

 

$

1,093,688

 

$

1,177,494

 

$

1,210,315

 

$

1,666,151

 

 

 









 











See Notes to Financial Statements.

 

 

 




52

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
MuniEnhanced Fund, Inc. (MEN)

 

BlackRock
MuniHoldings Fund, Inc. (MHD)

 

 

 


 


 

Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
February 1,
2009 to
April 30,
2009

 

Year Ended
January 31,
2009

 

Six Months
Ended
October 31,

2009,
(Unaudited)

 

Year Ended
April 30,
2009

 













Operations


















Net investment income

 

$

11,289,202

 

$

5,158,666

 

$

21,647,889

 

$

8,016,817

 

$

14,953,226

 

Net realized gain (loss)

 

 

(1,947,187

)

 

(964,506

)

 

(5,890,560

)

 

218,174

 

 

796,686

 

Net change in unrealized appreciation/depreciation

 

 

24,002,195

 

 

18,357,213

 

 

(54,032,922

)

 

23,406,343

 

 

(27,850,295

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(546,763

)

 

(373,520

)

 

(5,591,529

)

 

(278,857

)

 

(2,473,001

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(75,129

)

 

 









 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

32,797,447

 

 

22,177,853

 

 

(43,867,122

)

 

31,362,477

 

 

(14,648,513

)

 

 









 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends and Distributions to
Common Shareholders From


















Net investment income

 

 

(8,825,647

)

 

(3,788,714

)

 

(15,154,855

)

 

(6,796,505

)

 

(11,874,169

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(221,635

)

 

 









 







Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(8,825,647

)

 

(3,788,714

)

 

(15,154,855

)

 

(6,796,505

)

 

(12,095,804

)

 

 









 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net Assets Applicable to
Common Shareholders


















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

23,971,800

 

 

18,389,139

 

 

(59,021,977

)

 

24,565,972

 

 

(26,744,317

)

Beginning of period

 

 

287,078,482

 

 

268,689,343

 

 

327,711,320

 

 

184,684,977

 

 

211,429,294

 

 

 









 







End of period

 

$

311,050,282

 

$

287,078,482

 

$

268,689,343

 

$

209,250,949

 

$

184,684,977

 

 

 









 







Undistributed net investment income

 

$

4,847,328

 

$

2,930,536

 

$

2,372,225

 

$

3,276,340

 

$

2,334,885

 

 

 









 








See Notes to Financial Statements.

 

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

53




 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
MuniHoldings Fund II, Inc. (MUH)

 

BlackRock MuniHoldings
Insured Fund, Inc. (MUS)

 

 

 


 


 

Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
August 1,
2008 to
April 30,
2009

 

Year Ended
July 31,
2008

 

Six Months
Ended
October 31,
2009,
(Unaudited)

 

Year Ended
April 30,
2009

 













Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

$

5,800,665

 

$

7,995,205

 

$

11,633,362

 

$

6,231,413

 

$

11,945,370

 

Net realized gain (loss)

 

 

319,584

 

 

(653,515

)

 

1,066,947

 

 

(582,430

)

 

(8,311,813

)

Change in net unrealized appreciation/depreciation

 

 

16,031,593

 

 

(12,946,433

)

 

(13,811,243

)

 

9,295,430

 

 

(7,075,567

)

Dividends to Preferred Shareholders from net investment income

 

 

(148,193

)

 

(1,093,524

)

 

(2,964,352

)

 

(229,572

)

 

(2,507,663

)

 

 









 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

22,003,649

 

 

(6,698,267

)

 

(4,075,286

)

 

14,714,841

 

 

(5,949,673

)

 

 









 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends to Common Shareholders
From


















Net investment income

 

 

(4,921,828

)

 

(6,557,719

)

 

(8,477,052

)

 

(4,980,516

)

 

(7,499,768

)

 

 









 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net Assets Applicable to Common
Shareholders


















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

17,081,821

 

 

(13,255,986

)

 

(12,552,338

)

 

9,734,325

 

 

(13,449,441

)

Beginning of period

 

 

139,377,005

 

 

152,632,991

 

 

165,185,329

 

 

158,061,021

 

 

171,510,462

 

 

 









 







End of period

 

$

156,458,826

 

$

139,377,005

 

$

152,632,991

 

$

167,795,346

 

$

158,061,021

 

 

 









 







Undistributed net investment income

 

$

3,015,178

 

$

2,284,534

 

$

1,985,174

 

$

3,306,168

 

$

2,284,843

 

 

 









 








See Notes to Financial Statements.

 

 

 




54

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

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:

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
June 1,
2008 to
April 30,
2009

 

Year Ended
May 31,
2008

 

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
November 1,
2008 to
April 30,
2009

 

Year Ended
October 31,
2008

 
















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






















Net investment income

 

$

19,698,072

 

$

33,913,505

 

$

39,370,266

 

 

$

12,233,484

 

$

10,876,904

 

$

22,771,036

 

Net realized gain (loss)

 

 

2,432,570

 

 

(6,621,611

)

 

(994,843

)

 

 

2,242,535

 

 

700,399

 

 

(5,886,789

)

Change in net unrealized appreciation/depreciation

 

 

38,776,823

 

 

(47,262,844

)

 

(22,744,454

)

 

 

33,421,966

 

 

18,630,931

 

 

(65,016,525

)

Dividends to Preferred Shareholders from net investment income

 

 

(2,274,471

)

 

(8,817,093

)

 

(12,598,505

)

 

 

(551,882

)

 

(1,057,535

)

 

(6,547,531

)

 

 









 

 










Net increase (decrease) in net assets to Common Shareholders resulting from operations

 

 

58,632,994

 

 

(28,788,043

)

 

3,032,464

 

 

 

47,346,103

 

 

29,150,699

 

 

(54,679,809

)

 

 









 

 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






















Net investment income

 

 

(14,662,467

)

 

(24,380,887

)

 

(27,841,571

)

 

 

(9,970,676

)

 

(8,777,352

)

 

(17,375,256

)

 

 









 

 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






















Reinvestment of common dividends

 

 

 

 

 

 

 

 

 

628,805

 

 

 

 

1,428,596

 

 

 









 

 










 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

43,970,527

 

 

(53,168,930

)

 

(24,809,107

)

 

 

38,004,232

 

 

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

 

$

540,217,037

 

$

496,246,510

 

$

549,415,440

 

 

$

281,587,293

 

$

243,583,061

 

$

223,209,714

 

 

 









 

 










Undistributed net investment income

 

$

6,920,662

 

$

4,159,528

 

$

3,452,820

 

 

$

4,058,947

 

$

2,348,021

 

$

1,127,498

 

 

 









 

 











 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

55




 


 

Statements of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended October 31, 2009 (Unaudited)

 

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 to Preferred Shareholders

 

$

33,344,210

 

$

31,641,334

 

$

22,151,842

 

$

14,944,413

 

$

47,897,985

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in interest receivable

 

 

139,835

 

 

93,669

 

 

(59,639

)

 

(485,275

)

 

235,372

 

Decrease in other assets

 

 

 

 

 

 

 

 

1,310

 

 

 

Increase in investment advisory fees payable

 

 

28,723

 

 

25,991

 

 

18,242

 

 

18,167

 

 

37,771

 

Decrease in interest expense payable

 

 

(64,852

)

 

(87,722

)

 

(72,150

)

 

(67,954

)

 

(70,822

)

Increase (decrease) in other affiliates payable

 

 

1,342

 

 

424

 

 

81

 

 

(64

)

 

556

 

Decrease in accrued expenses payable

 

 

(79,262

)

 

(29,896

)

 

(49,726

)

 

(33,931

)

 

(58,491

)

Cash held as collateral for financial futures contracts

 

 

 

 

(157,680

)

 

(118,800

)

 

 

 

(216,000

)

Increase in Officer’s and Directors’ fees payable

 

 

72

 

 

315

 

 

246

 

 

222

 

 

257

 

Net realized and unrealized gain

 

 

(21,966,101

)

 

(23,720,689

)

 

(16,416,031

)

 

(8,713,000

)

 

(35,232,696

)

Amortization of premium and discount on investments

 

 

(800,616

)

 

24,873

 

 

(188,088

)

 

14,321

 

 

3,961

 

Proceeds from sales of long-term investments

 

 

66,121,742

 

 

79,548,058

 

 

59,953,417

 

 

27,556,589

 

 

80,573,334

 

Purchases of long-term investments

 

 

(72,113,554

)

 

(78,266,865

)

 

(55,225,366

)

 

(40,323,484

)

 

(83,274,537

)

Net proceeds from sales of short-term securities

 

 

6,412,166

 

 

(5,899,740

)

 

(7,799,969

)

 

12,304,199

 

 

(9,700,906

)

 

 
















Cash provided by operating activities

 

 

11,023,705

 

 

3,172,072

 

 

2,194,059

 

 

5,215,513

 

 

195,784

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















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

 

 

21,017,755

 

 

16,137,679

 

 

11,708,310

 

 

7,185,299

 

 

19,375,446

 

Cash payments for trust certificates

 

 

(6,700,000

)

 

(5,881,359

)

 

(4,366,004

)

 

(200,000

)

 

(75,056

)

Cash dividends paid to Common Shareholders

 

 

(8,531,949

)

 

(6,622,592

)

 

(4,782,161

)

 

(4,703,463

)

 

(9,082,910

)

Cash dividends paid to Preferred Shareholders

 

 

(543,219

)

 

(282,551

)

 

(148,309

)

 

(235,272

)

 

(570,354

)

Increase (decrease) in bank overdraft

 

 

 

 

 

 

 

 

4,415

 

 

 

 

 
















Cash used for financing activities

 

 

(11,032,413

)

 

(4,873,823

)

 

(3,538,164

)

 

(5,149,021

)

 

(1,152,874

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net increase (decrease) in cash

 

 

(8,708

)

 

(1,701,751

)

 

(1,344,105

)

 

66,492

 

 

(957,090

)

Cash at beginning of period

 

 

37,185

 

 

1,758,061

 

 

1,368,477

 

 

 

 

994,448

 

 

 
















Cash at end of period

 

$

28,477

 

$

56,310

 

$

24,372

 

$

66,492

 

$

37,358

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash paid during the period for interest

 

$

296,189

 

$

206,683

 

$

166,474

 

$

178,234

 

$

70,822

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Noncash Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Capital shares issued in reinvestment of dividends paid to shareholders

 

 

 

 

 

 

 

 

 

$

628,805

 

 

 

















 

 

 

A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average total assets.


 

 

 

See Notes to Financial Statements.

 




56

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 



 

 

Financial Highlights

BlackRock Apex Municipal Fund, Inc. (APX)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
July 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30,

 

 

 

 

 



 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

7.67

 

$

9.14

 

$

9.95

 

$

9.90

 

$

9.82

 

$

9.13

 

$

8.99

 

 

 






















Net investment income1

 

 

0.29

 

 

0.48

 

 

0.54

 

 

0.58

 

 

0.58

 

 

0.58

 

 

0.60

 

Net realized and unrealized gain (loss)

 

 

1.10

 

 

(1.48

)

 

(0.77

)

 

0.06

 

 

0.08

 

 

0.69

 

 

0.11

 

 

 






















Net increase (decrease) from investment operations

 

 

1.39

 

 

(1.00

)

 

(0.23

)

 

0.64

 

 

0.66

 

 

1.27

 

 

0.71

 

 

 






















Dividends and distributions from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.28

)

 

(0.47

)

 

(0.58

)

 

(0.59

)

 

(0.58

)

 

(0.58

)

 

(0.57

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.00

)2

 

 






















Total dividends and distributions

 

 

(0.28

)

 

(0.47

)

 

(0.58

)

 

(0.59

)

 

(0.58

)

 

(0.58

)

 

(0.57

)

 

 






















Net asset value, end of period

 

$

8.78

 

$

7.67

 

$

9.14

 

$

9.95

 

$

9.90

 

$

9.82

 

$

9.13

 

 

 






















Market price, end of period

 

$

8.38

 

$

7.72

 

$

9.28

 

$

10.23

 

$

10.25

 

$

9.48

 

$

8.26

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

18.38

%4

 

(10.81

)%4

 

(2.40

)%

 

6.48

%

 

7.00

%

 

14.67

%

 

8.64

%

 

 






















Based on market price

 

 

12.25

%4

 

(11.58

)%4

 

(3.61

)%

 

5.73

%

 

14.76

%

 

22.36

%

 

4.20

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

0.85

%6

 

0.91

%6

 

0.85

%

 

0.80

%

 

0.81

%

 

0.80

%

 

0.79

%

 

 






















Total expenses after fees waived5

 

 

0.85

%6

 

0.91

%6

 

0.84

%

 

0.80

%

 

0.80

%

 

0.80

%

 

0.79

%

 

 






















Total expenses after fees waived and excluding interest expense and fees5

 

 

0.81

%6

 

0.84

%6

 

0.80

%

 

0.80

%

 

0.80

%

 

0.80

%

 

0.79

%

 

 






















Net investment income5

 

 

6.90

%6

 

7.16

%6

 

5.64

%

 

5.75

%

 

5.83

%

 

6.11

%

 

6.52

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets, end of period (000)

 

$

175,226

 

$

152,961

 

$

181,656

 

$

196,826

 

$

194,646

 

$

192,475

 

$

178,983

 

 

 






















Portfolio turnover

 

 

15

%

 

20

%

 

25

%

 

22

 

19

%

 

22

%

 

19

%

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market value, 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.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

57




 

 


 

Financial Highlights

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
June 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended May 31,

 

 

 

 

 



 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

10.59

 

$

12.79

 

$

13.87

 

$

13.65

 

$

13.40

 

$

12.36

 

$

11.94

 

 

 






















Net investment income1

 

 

0.40

 

 

0.72

 

 

0.78

 

 

0.82

 

 

0.81

 

 

0.81

 

 

0.83

 

Net realized and unrealized gain (loss)

 

 

1.52

 

 

(2.18

)

 

(1.04

)

 

0.24

 

 

0.27

 

 

1.04

 

 

0.38

 

 

 






















Net increase (decrease) from investment operations

 

 

1.92

 

 

(1.46

)

 

(0.26

)

 

1.06

 

 

1.08

 

 

1.85

 

 

1.21

 

 

 






















Dividends and distributions from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.41

)

 

(0.74

)

 

(0.82

)

 

(0.84

)

 

(0.83

)

 

(0.81

)

 

(0.78

)

Net realized gain

 

 

 

 

 

 

(0.00

)2

 

 

 

 

 

 

 

(0.01

)

 

 






















Total dividends and distributions

 

 

(0.41

)

 

(0.74

)

 

(0.82

)

 

(0.84

)

 

(0.83

)

 

(0.81

)

 

(0.79

)

 

 






















Net asset value, end of period

 

$

12.10

 

$

10.59

 

$

12.79

 

$

13.87

 

$

13.65

 

$

13.40

 

$

12.36

 

 

 






















Market price, end of period

 

$

11.58

 

$

10.91

 

$

13.35

 

$

15.29

 

$

14.13

 

$

13.27

 

$

11.38

 

 

 






















 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

18.35

%4

 

(11.29

)%4

 

(1.90

)%

 

7.72

%

 

8.31

%

 

15.65

%

 

10.74

%

 

 






















Based on market price

 

 

9.95

%4

 

(12.45

)%4

 

(7.12

)%

 

14.71

%

 

13.22

%

 

24.39

%

 

2.22

%

 

 






















 
























Ratios to Average Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

0.72

%6

 

0.77

%6

 

0.70

%

 

0.68

%

 

0.68

%

 

0.67

%

 

0.67

%

 

 






















Total expenses after fees waived and paid indirectly5

 

 

0.71

%6

 

0.76

%6

 

0.69

%

 

0.68

%

 

0.68

%

 

0.67

%

 

0.67

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5

 

 

0.68

%6

 

0.70

%6

 

0.66

%

 

0.68

%

 

0.68

%

 

0.67

%

 

0.67

%

 

 






















Net investment income

 

 

6.98

%6

 

7.13

%6

 

5.81

%

 

5.91

%

 

5.97

%

 

6.30

%

 

6.71

%

 

 






















 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets, end of period (000)

 

$

254,716

 

$

221,899

 

$

266,913

 

$

287,367

 

$

280,793

 

$

273,382

 

$

252,203

 

 

 






















Portfolio turnover

 

 

13

%

 

23

%

 

23

%

 

25

%

 

17

%

 

20

%

 

19

%

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market value, 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.

 




58

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

Financial Highlights

BlackRock MuniEnhanced Fund, Inc. (MEN)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
February 1,
2009 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended January 31,

 

 

 

 

 



 

 

 

 

2009

 

2008

 

2007

 

2006

 

2005

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

9.77

 

$

9.15

 

$

11.16

 

$

11.55

 

$

11.52

 

$

11.85

 

$

11.83

 

 

 






















Net investment income1

 

 

0.38

 

 

0.18

 

 

0.72

 

 

0.78

 

 

0.76

 

 

0.77

 

 

0.79

 

Net realized and unrealized gain (loss)

 

 

0.76

 

 

0.58

 

 

(2.02

)

 

(0.41

)

 

0.06

 

 

(0.22

)

 

0.05

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.01

)

 

(0.19

)

 

(0.24

)

 

(0.22

)

 

(0.16

)

 

(0.07

)

 

 






















Net increase (decrease) from investment operations

 

 

1.12

 

 

0.75

 

 

(1.49

)

 

0.13

 

 

0.60

 

 

0.39

 

 

0.77

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.30

)

 

(0.13

)

 

(0.52

)

 

(0.52

)

 

(0.57

)

 

(0.72

)

 

(0.73

)

 

 






















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.02

)

 

 






















Net asset value, end of period

 

$

10.59

 

$

9.77

 

$

9.15

 

$

11.16

 

$

11.55

 

$

11.52

 

$

11.85

 

 

 

 





















Market price, end of period

 

$

9.80

 

$

8.88

 

$

8.31

 

$

10.66

 

$

10.77

 

$

11.03

 

$

10.93

 

 

 






















 
























Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

11.79

%3

 

8.40

%3

 

(13.19

)%

 

1.44

%

 

5.66

%

 

3.63

%

 

7.20

%

 

 






















Based on market price

 

 

13.82

%3

 

8.48

%3

 

(17.46

)%

 

3.92

%

 

2.90

%

 

7.58

%

 

4.25

%

 

 






















 
























Ratios to Average Net Assets
Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses4

 

 

1.21

%6

 

1.46

%6

 

1.77

%

 

1.72

%

 

1.69

%

 

1.51

%

 

1.32

%

 

 






















Total expenses after fees waived and paid indirectly4

 

 

1.21

%6

 

1.45

%6

 

1.76

%

 

1.72

%

 

1.69

%

 

1.51

%

 

1.32

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,5

 

 

1.05

%6

 

1.22

%6

 

1.18

%

 

1.08

%

 

1.08

%

 

1.07

%

 

1.01

%

 

 






















Net investment income4

 

 

7.46

%6

 

7.72

%6

 

7.43

%

 

6.85

%

 

6.57

%

 

6.63

%

 

6.80

%

 

 






















Dividends to Preferred Shareholders

 

 

0.36

%6

 

0.56

%6

 

1.92

%

 

2.08

%

 

1.88

%

 

1.34

%

 

0.59

%

 

 






















Net investment income to Common Shareholders

 

 

7.10

%6

 

7.16

%6

 

5.51

%

 

4.77

%

 

4.69

%

 

5.29

%

 

6.21

%

 

 






















 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

311,050

 

$

287,078

 

$

268,689

 

$

327,711

 

$

339,237

 

$

338,450

 

$

348,027

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

142,575

 

$

158,850

 

$

158,850

 

$

187,000

 

$

187,000

 

$

187,000

 

$

187,000

 

 

 






















Portfolio turnover

 

 

23

%

 

6

%

 

24

%

 

18

%

 

31

%

 

22

%

 

33

%

 

 






















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

79,547

 

$

70,185

 

$

67,294

 

$

68,834

 

$

70,373

 

$

70,262

 

$

71,538

 

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, 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.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

59




 

 


 

Financial Highlights

BlackRock MuniHoldings Fund, Inc. (MHD)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 

 



 

 

 

2009

 

2008

 

2007

 

2006

 

2005

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

13.27

 

$

15.20

 

$

16.51

 

$

16.14

 

$

16.31

 

$

15.54

 

 

 



















Net investment income1

 

 

0.58

 

 

1.07

 

 

1.16

 

 

1.17

 

 

1.16

 

 

1.20

 

Net realized and unrealized gain (loss)

 

 

1.70

 

 

(1.94

)

 

(1.20

)

 

0.42

 

 

(0.00

)2

 

0.84

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.02

)

 

(0.18

)

 

(0.31

)

 

(0.32

)

 

(0.23

)

 

(0.12

)

Net realized gain

 

 

 

 

(0.01

)

 

(0.03

)

 

 

 

 

 

 

 

 



















Net increase (decrease) from investment operations

 

 

2.26

 

 

(1.06

)

 

(0.38

)

 

1.27

 

 

0.93

 

 

1.92

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.49

)

 

(0.85

)

 

(0.85

)

 

(0.90

)

 

(1.08

)

 

(1.15

)

Net realized gain

 

 

 

 

(0.02

)

 

(0.08

)

 

 

 

 

 

 

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.49

)

 

(0.87

)

 

(0.93

)

 

(0.90

)

 

(1.08

)

 

(1.15

)

 

 



















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

(0.02

)

 

 

 

 



















Net asset value, end of period

 

$

15.04

 

$

13.27

 

$

15.20

 

$

16.51

 

$

16.14

 

$

16.31

 

 

 



















Market price, end of period

 

$

14.66

 

$

11.97

 

$

14.77

 

$

16.49

 

$

16.20

 

$

16.12

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

17.38

%4

 

(6.24

)%

 

(2.08

)%

 

8.06

%

 

5.69

%

 

12.95

%

 

 



















Based on market price

 

 

26.84

%4

 

(12.97

)%

 

(4.74

)%

 

7.52

%

 

7.34

%

 

20.22

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses5

 

 

1.25

%6

 

1.65

%

 

1.56

%

 

1.54

%

 

1.30

%

 

1.15

%

 

 



















Total expenses after fees waived and paid indirectly5

 

 

1.25

%6

 

1.64

%

 

1.56

%

 

1.54

%

 

1.30

%

 

1.15

%

 

 



















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,7

 

 

1.13

%6

 

1.25

%

 

1.20

%

 

1.17

%

 

1.15

%

 

1.13

%

 

 



















Net investment income5

 

 

8.00

%6

 

7.98

%

 

7.27

%

 

7.14

%

 

7.15

%

 

7.61

%

 

 



















Dividends to Preferred Shareholders

 

 

0.28

%6

 

1.32

%

 

1.96

%

 

1.93

%

 

1.45

%

 

0.74

%

 

 



















Net investment income to Common Shareholders

 

 

7.72

%6

 

6.66

%

 

5.31

%

 

5.20

%

 

5.70

%

 

6.87

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

209,251

 

$

184,685

 

$

211,429

 

$

229,376

 

$

223,658

 

$

225,218

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

83,700

 

$

91,925

 

$

125,000

 

$

125,000

 

$

125,000

 

$

110,000

 

 

 



















Portfolio turnover

 

 

29

%

 

19

%

 

30

%

 

20

%

 

45

%

 

34

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

87,502

 

$

75,230

 

$

67,294

 

$

70,889

 

$

69,742

 

$

76,186

 

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market value, 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

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

7

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.

 




60

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

Financial Highlights

BlackRock MuniHoldings Fund II, Inc. (MUH)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
August 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended July 31,

 

 

 

 

 



 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

12.47

 

$

13.66

 

$

14.78

 

$

14.82

 

$

15.03

 

$

13.98

 

$

13.46

 

 

 






















Net investment income1

 

 

0.52

 

 

0.72

 

 

1.04

 

 

1.05

 

 

1.04

 

 

1.08

 

 

1.15

 

Net realized and unrealized gain (loss)

 

 

1.46

 

 

(1.22

)

 

(1.14

)

 

(0.05

)

 

(0.11

)

 

1.15

 

 

0.50

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.01

)

 

(0.10

)

 

(0.26

)

 

(0.27

)

 

(0.23

)

 

(0.14

)

 

(0.10

)

 

 






















Net increase (decrease) from investment operations

 

 

1.97

 

 

(0.60

)

 

(0.36

)

 

0.73

 

 

0.70

 

 

2.09

 

 

1.55

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.44

)

 

(0.59

)

 

(0.76

)

 

(0.77

)

 

(0.91

)

 

(1.04

)

 

(1.03

)

 

 






















Net asset value, end of period

 

$

14.00

 

$

12.47

 

$

13.66

 

$

14.78

 

$

14.82

 

$

15.03

 

$

13.98

 

 

 






















Market price, end of period

 

$

13.26

 

$

11.33

 

$

13.01

 

$

13.99

 

$

14.12

 

$

15.25

 

$

13.53

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

16.22

%3

 

(3.55

)%3

 

(2.30

)%

 

5.08

%

 

4.89

%

 

15.46

%

 

11.88

%

 

 






















Based on market price

 

 

21.15

%3

 

(7.99

)%3

 

(1.69

)%

 

4.39

%

 

(1.50

)%

 

21.04

%

 

10.75

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses4

 

 

1.24

%5

 

1.60

%5

 

1.55

%

 

1.63

%

 

1.44

%

 

1.27

%

 

1.31

%

 

 






















Total expenses after fees waived4

 

 

1.24

%5

 

1.60

%5

 

1.55

%

 

1.63

%

 

1.44

%

 

1.27

%

 

1.30

%

 

 






















Total expenses after fees waived and excluding interest expense and fees4,6

 

 

1.11

%5

 

1.22

%5

 

1.18

%

 

1.19

%

 

1.18

%

 

1.19

%

 

1.21

%

 

 






















Net investment income4

 

 

7.71

%5

 

7.84

%5

 

7.07

%

 

6.97

%

 

7.04

%

 

7.38

%

 

8.13

%

 

 






















Dividends to Preferred Shareholders

 

 

0.20

%5

 

1.07

%5

 

1.79

%

 

1.82

%

 

1.55

%

 

0.98

%

 

0.69

%

 

 






















Net investment income to Common Shareholders

 

 

7.51

%5

 

6.77

%5

 

5.28

%

 

5.15

%

 

5.49

%

 

6.41

%

 

7.44

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

156,459

 

$

139,377

 

$

152,633

 

$

165,185

 

$

165,565

 

$

167,588

 

$

155,583

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

55,050

 

$

61,000

 

$

61,000

 

$

87,000

 

$

87,000

 

$

87,000

 

$

87,000

 

 

 






















Portfolio turnover

 

 

26

%

 

19

%

 

28

%

 

15

%

 

49

%

 

38

%

 

29

%

 

 






















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

96,055

 

$

81,123

 

$

87,562

 

$

72,478

 

$

72,555

 

$

73,163

 

$

69,725

 

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

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.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

61




 

 


 

 

Financial Highlights

BlackRock MuniHoldings Insured Fund, Inc. (MUS)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 

 



 

 

 

2009

 

2008

 

2007

 

2006

 

2005

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.27

 

$

13.31

 

$

14.10

 

$

13.80

 

$

14.44

 

$

14.12

 

 

 



















Net investment income1

 

 

0.48

 

 

0.93

 

 

1.05

 

 

0.93

 

 

0.97

 

 

1.01

 

Net realized and unrealized gain (loss)

 

 

0.68

 

 

(1.20

)

 

(0.87

)

 

0.36

 

 

(0.50

)

 

0.38

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.19

)

 

(0.38

)

 

(0.36

)

 

(0.28

)

 

(0.16

)

 

 



















Net increase (decrease) from investment operations

 

 

1.14

 

 

(0.46

)

 

(0.20

)

 

0.93

 

 

0.19

 

 

1.23

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.39

)

 

(0.58

)

 

(0.59

)

 

(0.63

)

 

(0.83

)

 

(0.91

)

 

 



















Net asset value, end of period

 

$

13.02

 

$

12.27

 

$

13.31

 

$

14.10

 

$

13.80

 

$

14.44

 

 

 



















Market price, end of period

 

$

12.34

 

$

10.87

 

$

11.97

 

$

13.13

 

$

13.10

 

$

13.70

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

9.60

%3

 

(2.52

)%

 

(0.95

)%

 

7.29

%

 

1.46

%

 

9.35

%

 

 



















Based on market price

 

 

17.26

%3

 

(3.97

)%

 

(4.34

)%

 

5.25

%

 

1.51

%

 

15.90

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses4

 

 

1.36

%5

 

1.88

%

 

1.64

%

 

1.67

%

 

1.65

%

 

1.70

%

 

 



















Total expenses after fees waived4

 

 

1.18

%5

 

1.65

%

 

1.51

%

 

1.56

%

 

1.54

%

 

1.60

%

 

 



















Total expenses after fees waived and excluding interest expense and fees4,6

 

 

1.05

%5

 

1.17

%

 

1.27

%

 

1.23

%

 

1.24

%

 

1.24

%

 

 



















Net investment income4

 

 

7.55

%5

 

7.69

%

 

7.72

%

 

6.62

%

 

6.87

%

 

7.09

%

 

 



















Dividends to Preferred Shareholders

 

 

0.28

%5

 

1.61

%

 

2.80

%

 

2.59

%

 

2.00

%

 

1.09

%

 

 



















Net investment income to Common Shareholders

 

 

7.27

%5

 

6.08

%

 

4.92

%

 

4.03

%

 

4.87

%

 

6.00

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

167,795

 

$

158,061

 

$

171,510

 

$

181,640

 

$

177,790

 

$

185,821

 

 

 



















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

87,000

 

$

94,200

 

$

134,000

 

$

134,000

 

$

134,000

 

$

134,000

 

 

 



















Portfolio turnover

 

 

10

%

 

35

%

 

57

%

 

29

%

 

59

%

 

43

%

 

 



















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

73,218

 

$

66,951

 

$

57,008

 

$

58,903

 

$

58,181

 

$

59,674

 

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Annualized.

 

 

 

 

6

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

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 

 


 

 

Financial Highlights

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
June 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

Period
August 1,
20031 to
May 31,
2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

14.33

 

 

 






















Net investment income

 

 

0.52

2

 

0.89

2

 

1.04

2

 

1.03

2

 

1.04

2

 

1.02

2

 

0.79

 

Net realized and unrealized gain (loss)

 

 

1.08

 

 

(1.42

)

 

(0.63

)

 

0.18

 

 

(0.15

)

 

1.15

 

 

0.21

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.06

)

 

(0.23

)

 

(0.33

)

 

(0.28

)

 

(0.21

)

 

(0.11

)

 

(0.06

)

Net realized gain

 

 

 

 

 

 

 

 

(0.04

)

 

(0.04

)

 

(0.02

)

 

 

 

 






















Net increase (decrease) from investment operations

 

 

1.54

 

 

(0.76

)

 

0.08

 

 

0.89

 

 

0.64

 

 

2.04

 

 

0.94

 

 

 






















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.39

)

 

(0.64

)

 

(0.73

)

 

(0.74

)

 

(0.84

)

 

(0.86

)

 

(0.65

)

Net realized gain

 

 

 

 

 

 

 

 

(0.12

)

 

(0.23

)

 

(0.19

)

 

 

 

 






















Total dividends and distributions to Common Shareholders

 

 

(0.39

)

 

(0.64

)

 

(0.73

)

 

(0.86

)

 

(1.07

)

 

(1.05

)

 

(0.65

)

 

 






















Capital charges with respect to issuance of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.02

)

Preferred Shares

 

 

 

 

 

 

 

 

 

 

(0.01

)

 

 

 

(0.08

)

 

 






















Total capital charges with respect to issuance of shares

 

 

 

 

 

 

 

 

 

 

(0.01

)

 

 

 

(0.10

)

 

 






















Net asset value, end of period

 

$

14.20

 

$

13.05

 

$

14.45

 

$

15.10

 

$

15.07

 

$

15.51

 

$

14.52

 

 

 






















Market price, end of period

 

$

12.95

 

$

11.77

 

$

13.70

 

$

14.85

 

$

14.52

 

$

13.94

 

$

13.10

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

12.11

%4

 

(4.56

)%4

 

0.86

%

 

6.14

%

 

4.71

%

 

15.36

%

 

6.09

%4

 

 






















Based on market price

 

 

13.36

%4

 

(9.21

)%4

 

(2.76

)%

 

8.34

%

 

12.25

%

 

14.93

%

 

(8.59

)%4

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

1.21

%6

 

1.44

%6

 

1.30

%

 

1.31

%

 

1.24

%

 

1.07

%

 

1.03

%6

 

 






















Total expenses after fees waived and paid indirectly5

 

 

1.08

%6

 

1.25

%6

 

1.07

%

 

1.07

%

 

1.00

%

 

0.85

%

 

0.75

%6

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,7

 

 

1.00

%6

 

1.02

%6

 

0.90

%

 

0.87

%

 

0.87

%

 

0.84

%

 

0.75

%6

 

 






















Net investment income5

 

 

7.47

%6

 

7.46

%6

 

6.97

%

 

6.71

%

 

6.82

%

 

6.77

%

 

6.51

%6

 

 






















Dividends to Preferred Shareholders

 

 

0.86

%6

 

1.94

%6

 

2.23

%

 

1.80

%

 

1.36

%

 

0.74

%

 

0.48

%6

 

 






















Net investment income to Common Shareholders

 

 

6.61

%6

 

5.52

%6

 

4.74

%

 

4.91

%

 

5.46

%

 

6.03

%

 

6.03

%6

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

540,217

 

$

496,247

 

$

549,415

 

$

574,225

 

$

573,034

 

$

589,802

 

$

552,179

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

287,175

 

$

287,175

 

$

320,000

 

$

320,000

 

$

320,000

 

$

285,000

 

$

285,000

 

 

 






















Portfolio turnover

 

 

17

%

 

13

%

 

14

%

 

12

%

 

49

%

 

54

%

 

70

%

 

 






















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

72,034

 

$

68,207

 

$

67,941

8

$

69,875

8

$

69,781

8

$

73,743

8

$

73,441

8

 

 























 

 

 

 

1

Commencement of operations.

 

 

 

 

2

Based on average shares outstanding.

 

 

 

 

3

Total investment returns based on market value, 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

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

7

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.

 

 

 

 

8

Amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

63




 

 


 

 

Financial Highlights

BlackRock MuniVest Fund II, Inc. (MVT)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
October 31,
2009
(Unaudited)

 

Period
November 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 

 



 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

11.95

 

$

10.95

 

$

14.49

 

$

15.35

 

$

15.13

 

$

15.21

 

$

14.76

 

 

 






















Net investment income1

 

 

0.60

 

 

0.53

 

 

1.12

 

 

1.16

 

 

1.16

 

 

1.19

 

 

1.17

 

Net realized and unrealized gain (loss)

 

 

1.75

 

 

0.95

 

 

(3.49

)

 

(0.84

)

 

0.35

 

 

0.04

 

 

0.44

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.03

)

 

(0.05

)

 

(0.32

)

 

(0.32

)

 

(0.29

)

 

(0.18

)

 

(0.07

)

 

 






















Net increase (decrease) from investment operations

 

 

2.32

 

 

1.43

 

 

(2.69

)

 

 

 

1.22

 

 

1.05

 

 

1.54

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.49

)

 

(0.43

)

 

(0.85

)

 

(0.86

)

 

(1.00

)

 

(1.10

)

 

(1.09

)

 

 






















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.03

)

 

 

 

 






















Net asset value, end of period

 

$

13.78

 

$

11.95

 

$

10.95

 

$

14.49

 

$

15.35

 

$

15.13

 

$

15.21

 

 

 






















Market price, end of period

 

$

13.94

 

$

11.65

 

$

9.75

 

$

13.91

 

$

16.29

 

$

15.40

 

$

15.15

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

19.70

%3

 

13.71

%3

 

(19.33

)%

 

(0.02

)%

 

8.36

%

 

6.88

%

 

10.94

%

 

 






















Based on market price

 

 

24.21

%3

 

24.49

%3

 

(25.18

)%

 

(9.56

)%

 

12.98

%

 

9.21

%

 

14.38

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses4

 

 

1.25

%5

 

1.51

%5

 

1.67

%

 

1.67

%

 

1.61

%

 

1.35

%

 

1.16

%

 

 






















Total expenses after fees waived

 

 

1.25

%5

 

1.51

%5

 

1.67

%

 

1.67

%

 

1.61

%

 

1.35

%

 

1.16

%

 

 






















Total expenses after fees waived and excluding interest expense and fees4,6

 

 

1.12

%5

 

1.26

%5

 

1.16

%

 

1.12

%

 

1.11

%

 

1.07

%

 

0.99

%

 

 






















Net investment income4

 

 

9.16

%5

 

9.77

%5

 

8.03

%

 

7.74

%

 

7.70

%

 

7.76

%

 

7.86

%

 

 






















Dividends to Preferred Shareholders

 

 

0.41

%5

 

0.95

%5

 

2.31

%

 

2.11

%

 

1.90

%

 

1.14

%

 

0.46

%

 

 






















Net investment income to Common Shareholders

 

 

8.75

%5

 

8.82

%5

 

5.72

%

 

5.63

%

 

5.80

%

 

6.62

%

 

7.40

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

281,587

 

$

243,583

 

$

223,210

 

$

293,836

 

$

309,975

 

$

303,701

 

$

303,448

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

140,000

 

$

150,800

 

$

150,800

 

$

175,000

 

$

175,000

 

$

175,000

 

$

135,000

 

 

 






















Portfolio turnover

 

 

18

%

 

9

%

 

49

%

 

43

%

 

60

%

 

64

%

 

20

%

 

 






















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

75,286

 

$

65,388

 

$

62,019

 

$

67,004

 

$

69,307

 

$

68,389

 

$

81,194

 

 

 























 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, 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

Annualized.

 

 

 

 

6

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

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Notes to Financial Statements (Unaudited)

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, 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: 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 selected under the supervision of each Fund’s Board of Directors (the “Board”). 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 maturities less than 60 days 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 each Fund’s 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 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 Funds. 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 security 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 expenses of the Funds. The 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 October 31, 2009, the aggregate value of the underlying municipal bonds

 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

65




 


 

Notes to Financial Statements (continued)

transferred to TOBs, the related liability for trust 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

 

$

14,782,954

 

$

7,285,446

 

 

0.30% – 0.51

%

MUA

 

$

21,821,571

 

$

10,755,646

 

 

0.30% – 0.51

%

MEN

 

$

114,404,861

 

$

60,169,292

 

 

0.21% – 0.85

%

MHD

 

$

77,692,568

 

$

40,544,276

 

 

0.20% – 0.49

%

MUH

 

$

59,851,520

 

$

31,480,379

 

 

0.20% – 0.49

%

MUS

 

$

61,359,327

 

$

33,374,741

 

 

0.26% – 0.58

%

MUI

 

$

104,086,631

 

$

57,348,814

 

 

0.20% – 0.75

%

MVT

 

$

125,826,588

 

$

64,066,831

 

 

0.22% – 0.51

%












For the six months ended October 31, 2009, the Funds’ average trust certificates outstanding and the daily weighted average interest rate, including fees, were as follows:

 

 

 

 

 

 

 

 









 

 

Average Trust
Certificates
Outstanding

 

Daily Weighted
Average
Interest Rate

 









APX

 

$

7,285,446

 

0.79

%

 

MUA

 

$

10,755,646

 

0.79

%

 

MEN

 

$

56,467,231

 

0.81

%

 

MHD

 

$

35,624,271

 

0.66

%

 

MUH

 

$

28,000,622

 

0.66

%

 

MUS

 

$

31,174,455

 

0.70

%

 

MUI

 

$

54,592,194

 

0.78

%

 

MVT

 

$

55,106,766

 

0.62

%

 









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 value per share.

Zero-Coupon Bonds: Each Fund may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide 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. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual method. Each Fund amortizes all premiums and discounts on debt securities.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 6.

Income Taxes: It is each Fund’s policy to comply with the requirements of the Internal Revenue Code 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 statutes of limitations on the Funds’ US federal tax returns remain open for the four periods ended as follows:

 

 

 

 

 

 

 

 

 










 

 

Period

 

Year Ended

 

Year Ended

 

Year Ended










APX

 

July 1, 2008 to
April 30, 2009

 

June 30, 2008

 

June 30, 2007

 

June 30, 2006










MUA

 

June 1, 2008 to
April 30, 2009

 

May 31, 2008

 

May 31, 2007

 

May 31, 2006










MEN

 

February 1, 2009
to April 30, 2009

 

January 31,
2009

 

January 31,
2007

 

January 31,
2006










MHD

 

April 30, 2009

 

April 30, 2008

 

April 30, 2007

 

April 30, 2006










MUH

 

August 1, 2008 to
April 30, 2009

 

July 31, 2008

 

July 31, 2007

 

July 31, 2006










MUS

 

April 30, 2009

 

April 30, 2008

 

April 30, 2007

 

April 30, 2006










MUI

 

June 1, 2008 to
April 30, 2009

 

May 31, 2008

 

May 31, 2007

 

May 31, 2006










MVT

 

November 1, 2008
to April 30, 2009

 

October 31,
2008

 

October 31,
2007

 

October 31,
2006










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.

Recent Accounting Standards: In June 2009, amended guidance was issued by the Financial Accounting Standards Board for transfers of financial assets. This guidance is intended to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor’s continuing involvement, if any, in transferred financial assets. The amended guidance is effective for financial statements for fiscal years and interim periods beginning after November 15, 2009. Earlier application is prohibited. The recognition and measurement provisions of this guidance must be applied to transfers occurring on or after the effective date. Additionally, the enhanced disclosure provisions of the amended guidance should be applied to transfers that occurred both before and after the effective date of this guidance. The impact of this guidance on the Funds’ financial statements and disclosures, if any, is currently being assessed.

 

 

 


66

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Notes to Financial Statements (continued)

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 there under 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.

2. Derivative Financial Instruments:

The Funds may engage in various portfolio investment strategies both to increase the return of the Fund and to hedge, or protect, its exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security 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. Counterparty risk related to exchange-traded financial futures contracts is minimal because of the protection against defaults provided by the exchange on which they trade.

Financial Futures Contracts: The Funds may purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Derivatives Categorized by Risk Exposure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















 

The Effect of Derivative Instruments on the Statements of Operations
Six Months Ended October 31, 2009*

 





















 

 

Net Realized Gain (Loss) From

 

 

 



















 

 

APX

 

MUA

 

MEN

 

MHD

 

MUH

 

MVT

 





















Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

$

(167,615

)

$

(247,779

)

$

88,907

 

$

(96,172

)

$

(64,854

)

$

146,716

 






















 

 

*

As of October 31, 2009, there were no financial futures contracts outstanding. During the six months ended October 31, 2009, the Funds had limited activity in these transactions.

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Bank of America Corporation (“BAC”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC is 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 voluntarily 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: 0.15% for the first five years of MUI’s operations, 0.10% in year six, 0.05% in year seven and 0.00% in year eight and thereafter. MUI waived $324,958, which is included in fees waived by advisor in the Statements of Operations for MUI.

 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

67




 


 

Notes to Financial Statements (continued)

The Manager has voluntarily agreed to waive its advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds. These amounts are included in fees waived by advisor in the Statements of Operations. For the six months ended October 31,2009, the amounts waived were as follows:

 

 

 

 

 

 






 

 

Fees Waived
by Manager

 






APX

 

$

746

 

 

MUA

 

$

1,008

 

 

MEN

 

$

8,205

 

 

MHD

 

$

5,391

 

 

MUH

 

$

3,900

 

 

MUS

 

$

11,461

 

 

MUI

 

$

9,456

 

 

MVT

 

$

2,710

 

 






The Manager, for MUS, has voluntarily agreed to waive its advisory fee on the proceeds of the Preferred Shares and TOBs that exceed 35% of the Fund’s average daily net assets. This amount is included in fees waived by advisor in the Statements of Operations. For the six months ended October 31, 2009, the waiver was $137,176.

The Manager has entered into a separate sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager, under which 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 six months ended October 31, 2009, 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:

 

 

 

 

 

 






 

 

Reimbursement

 





APX

 

$

1,714

 

 

MUA

 

$

2,419

 

 

MEN

 

$

5,254

 

 

MHD

 

$

3,373

 

 

MUH

 

$

2,179

 

 

MUS

 

$

2,604

 

 

MUI

 

$

8,834

 

 

MVT

 

$

4,714

 

 






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 six months ended October 31, 2009 were as follows:

 

 

 

 

 

 

 

 









 

 

Purchases

 

Sales

 









APX

 

$

24,932,296

 

$

27,463,328

 

MUA

 

$

39,040,568

 

$

30,935,906

 

MEN

 

$

75,981,017

 

$

69,845,004

 

MHD

 

$

83,290,587

 

$

80,076,458

 

MUH

 

$

60,145,311

 

$

60,028,701

 

MUS

 

$

41,089,473

 

$

26,779,091

 

MUI

 

$

156,028,400

 

$

145,807,568

 

MVT

 

$

96,611,456

 

$

80,491,468

 









5. Market and Credit Risk:

Many municipalities insure repayment of their bonds, which reduces the risk of loss due to issuer default. 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 currency 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. 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 approximated by their value recorded in the Funds’ Statements of Assets and Liabilities, less any collateral held by the Funds.

6. 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. In this regard the Boards have reclassified 7,480 shares of MEN, 5,000 shares of MHD, 3,480 shares of MUH, 5,360 shares of MUS, 12,800 shares of MUI and 7,000 shares of MVT of unissued Common Shares as Preferred Shares.

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

 

 

 

 

 

 

 

 

 

 












 

 

October 31, 2009

 

April 30, 2009

 

Two Years Prior*

 












APX

 

35,379

 

 

53,658

 

 

103,837

 

 

MUA

 

84,846

 

 

95,859

 

 

146,172

 

 

MVT

 

49,636

 

 

 

 

104,666

 

 













 

 

*

June 30, 2008 for APX, May 31, 2008 for MUA and October 31, 2008 for MVT.

Shares issued and outstanding remained constant for MEN, MHD, MUH, MUS and MUI for the six months ended October 31, 2009, 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

 

 

 


68

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Notes to Financial Statements (continued)

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 that has issued Preferred Shares 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 such 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 October 31, 2009:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

 

Series

 

Preferred
Shares

 

Effective
Yield

 

Reset
Frequency
Days

 















MEN

 

 

A1

 

1,525

 

 

0.50

%

 

28

 

 

 

 

 

B1

 

1,525

 

 

0.40

%

 

28

 

 

 

 

 

C1

 

1,525

 

 

0.43

%

 

7

 

 

 

 

 

D2

 

1,128

 

 

1.47

%

 

7

 

 















MHD

 

 

A1

 

1,473

 

 

0.43

%

 

7

 

 

 

 

 

B1

 

1,473

 

 

0.41

%

 

7

 

 

 

 

 

C2

 

402

 

 

1.49

%

 

7

 

 















MUH

 

 

A1

 

1,101

 

 

0.43

%

 

7

 

 

 

 

 

B1

 

1,101

 

 

0.43

%

 

7

 

 















MUS

 

 

A1

 

1,740

 

 

0.41

%

 

7

 

 

 

 

 

B1

 

1,740

 

 

0.43

%

 

7

 

 















MUI

 

 

M72

 

1,795

 

 

1.49

%

 

7

 

 

 

 

 

T72

 

2,423

 

 

1.49

%

 

7

 

 

 

 

 

W72

 

1,795

 

 

1.49

%

 

7

 

 

 

 

 

TH72

 

2,423

 

 

1.47

%

 

7

 

 

 

 

 

F72

 

1,795

 

 

1.49

%

 

7

 

 

 

 

 

TH282

 

1,256

 

 

1.48

%

 

28

 

 















MVT

 

 

A1

 

1,440

 

 

0.46

%

 

28

 

 

 

 

 

B1

 

1,440

 

 

0.43

%

 

28

 

 

 

 

 

C1

 

1,440

 

 

0.43

%

 

7

 

 

 

 

 

D2

 

1,280

 

 

1.49

%

 

7

 

 
















 

 

1

The maximum applicable rate 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 is the higher of 110% plus or times the Telerate/BBA LIBOR or 110% or 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

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 period were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

 

Series

 

Low

 

High

 

Average

 











MEN

 

 

A28

 

0.43

%

 

1.94

%

 

1.94

%

 

 

 

 

B28

 

0.35

%

 

0.79

%

 

1.70

%

 

 

 

 

C7

 

0.40

%

 

0.79

%

 

2.03

%

 

 

 

 

D7

 

1.42

%

 

1.68

%

 

0.65

%

 















MHD

 

 

A

 

0.40

%

 

0.67

%

 

1.98

%

 

 

 

 

B

 

0.35

%

 

0.64

%

 

2.06

%

 

 

 

 

C

 

1.46

%

 

1.82

%

 

0.65

%

 















MUH

 

 

A

 

0.40

%

 

0.79

%

 

0.51

%

 

 

 

 

B

 

0.35

%

 

0.76

%

 

0.50

%

 















MUS

 

 

A

 

0.35

%

 

0.76

%

 

0.50

%

 

 

 

 

B

 

0.40

%

 

0.79

%

 

0.51

%

 















MUI

 

 

M7

 

1.46

%

 

1.79

%

 

1.56

%

 

 

 

 

T7

 

1.46

%

 

1.71

%

 

1.56

%

 

 

 

 

W7

 

1.45

%

 

1.70

%

 

1.55

%

 

 

 

 

TH7

 

1.42

%

 

1.68

%

 

1.54

%

 

 

 

 

F7

 

1.42

%

 

1.79

%

 

1.55

%

 

 

 

 

TH28

 

1.49

%

 

1.68

%

 

1.56

%

 















MVT

 

 

A

 

0.43

%

 

0.66

%

 

0.52

%

 

 

 

 

B

 

0.38

%

 

0.61

%

 

0.48

%

 

 

 

 

C

 

0.38

%

 

0.66

%

 

0.05

%

 

 

 

 

D

 

1.46

%

 

1.79

%

 

1.56

%

 















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 0.35% to 1.94% for the six months ended October 31, 2009. 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. It is impossible to predict how long this imbalance will last. A successful auction for the Funds’ Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, Preferred Shareholders 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.

 

 

 


SEMI-ANNUAL REPORT

OCTOBER 31, 2009

69




 


 

Notes to Financial Statements (continued)

During the six months ended October 31, 2009, 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 for MUI remained constant during the six months ended October 31, 2009.

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.

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.

7. Capital Loss Carryforwards:

As of April 30, 2009, 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

 
























2010

 

$

2,075,987

 

$

2,260,830

 

$

1,955,204

 

$

689,205

 

 

 

 

 

 

 

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

 

$

7,239,097

 

2017

 

 

373,543

 

 

1,575,568

 

 

3,540,378

 

 

 

 

5,373,343

 

 

321,623

 

 

 

 

 






















Total

 

$

9,380,544

 

$

26,130,920

 

$

8,368,605

 

$

878,613

 

$

5,997,063

 

$

1,267,419

 

$

7,239,097

 

 

 























 

 

 


70

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Notes to Financial Statements (concluded)

8. Restatement Information:

Subsequent to the initial issuance of the April 30, 2006 financial statements for MHD and MUS, May 31, 2006 for MUI and July 31, 2006 for MUH, the Funds determined that the criteria for sale accounting in FAS 140 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 April 30, 2005 for MHD and MUS, May 31, 2005 for MUI and July 31, 2005 and 2004 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.

 

 

 

 

 

 

 

 







MHD Financial Highlights
For the Year Ended April 30, 2005

 

Previously
Reported

 

Restated

 







Total expenses, net of reimbursement*

 

1.13

%

 

1.15

%

 

Total expenses*

 

1.13

%

 

1.15

%

 

Portfolio turnover

 

36.23

%

 

34

%

 










 

 

 

 

 

 

 

 

 

 

 

 

 

 











MUH Financial Highlights
For the Year Ended
July 31, 2005 and 2004

 

2005
Previously
Reported

 

Restated

 

2004
Previously
Reported

 

Restated

 











Total expenses, net of reimbursement*

 

1.19

%

 

1.27

%

 

1.21

%

 

1.30

%

 

Total expenses*

 

1.19

%

 

1.27

%

 

1.22

%

 

1.31

%

 

Portfolio turnover

 

45.11

%

 

38

%

 

31.03

%

 

29

%

 
















 

 

 

 

 

 

 

 







MUS Financial Highlights
For the Year Ended
April 30, 2005

 

Previously
Reported

 

Restated

 







Total expenses, net of reimbursement*

 

1.24

%

 

1.60

%

 

Total expenses*

 

1.35

%

 

1.70

%

 

Portfolio turnover

 

51.81

%

 

43

%

 










 

 

 

 

 

 

 

 









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:

Managements evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through December 23, 2009, the date the financial statements were issued and the following items were noted:

The Funds paid a net investment income dividend in the following amounts per share on December 1, 2009 to shareholders of record on November 13, 2009:

 

 

 

 





 

 

Common Dividend
Per Share

 





APX

 

$ 0.0465

 

MUA

 

$ 0.0675

 

MEN

 

$ 0.0530

 

MHD

 

$ 0.0835

 

MUH

 

$ 0.0755

 

MUS

 

$ 0.0700

 

MUI

 

$ 0.0655

 

MVT

 

$ 0.0835

 





The dividends declared on Preferred Shares for the period November 1, 2009 to November 30, 2009 for the Funds were as follows:

 

 

 

 

 

 

 

 







 

 

Series

 

Dividends
Declared

 







MEN

 

 

A

 

$

117,465

 

 

 

 

B

 

$

118,963

 

 

 

 

C

 

$

114,675

 

 

 

 

D

 

$

264,584

 









MHD

 

 

A

 

$

111,893

 

 

 

 

B

 

$

105,745

 

 

 

 

C

 

$

94,196

 









MUH

 

 

A

 

$

9,281

 

 

 

 

B

 

$

8,931

 









MUS

 

 

A

 

$

128,034

 

 

 

 

B

 

$

129,856

 









MUI

 

 

M7

 

$

52,447

 

 

 

 

T7

 

$

71,479

 

 

 

 

W7

 

$

52,788

 

 

 

 

TH7

 

$

70,950

 

 

 

 

TH28

 

$

37,382

 

 

 

 

F7

 

$

52,465

 









MVT

 

 

A

 

$

13,065

 

 

 

 

B

 

$

12,246

 

 

 

 

C

 

$

11,958

 

 

 

 

D

 

$

37,400

 










 

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

71




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors (each, a “Board” and, collectively, the “Boards,” and the members of which are referred to as “Board Members”) of each of BlackRock Apex Municipal Fund, Inc. (“APX”), BlackRock Muni Intermediate Duration Fund, Inc. (“MUI”), BlackRock MuniAssets Fund, Inc. (“MUA”), BlackRock MuniEnhanced Fund, Inc. (“MEN”), BlackRock MuniHoldings Fund, Inc. (“MHD”), BlackRock MuniHoldings Fund II, Inc. (“MUH”), BlackRock Muni-Holdings Insured Fund, Inc. (“MUS”) and BlackRock MuniVest Fund II, Inc. (“MVT,” and together with APX, MUI, MUA, MEN, MHD, MUH, and MUS, each a “Fund” and, collectively, the “Funds”) met on April 14, 2009 and May 28 – 29, 2009 to consider the approval of its respective Fund’s investment advisory agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. Each Board also considered the approval of a sub-advisory agreement (each, a “Sub-Advisory Agreement”) between its respective Fund, the Manager and BlackRock Investment Management, LLC (the “Sub-Advisor”). The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements are referred to herein as the “Agreements.” Unless otherwise indicated, references to actions taken by the “Board” or the “Boards” shall mean each Board acting independently with respect to its Fund.

Activities and Composition of the Boards

Each Board consists of twelve individuals, ten of whom are not “interested persons” of the Funds as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members of each Fund are responsible for the oversight of the operations of such Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chairman of each Board is an Independent Board Member. Each Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is composed of Independent Board Members (except for the Executive Committee, which has one interested Board Member) and is chaired by an Independent Board Member. In addition, each Board has established an Ad Hoc Committee on Auction Market Preferred Shares.

The Agreements

Pursuant to the 1940 Act, each Board is required to consider the continuation of the Agreements on an annual basis. In connection with this process, each Board assessed, among other things, the nature, scope and quality of the services provided to its respective Fund by the personnel of BlackRock and its affiliates, including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services and assistance in meeting applicable legal and regulatory requirements.

Throughout the year, the Boards, acting directly and through their committees, consider at each of their meetings factors that are relevant to their annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Funds and their shareholders. Among the matters the Boards considered were: (a) investment performance for one-, three- and five-year periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management and portfolio managers’ analysis of the reasons for any out performance or underperformance against each Fund’s peers; (b) fees, including advisory and other amounts paid to BlackRock and its affiliates by the Funds for services such as call center and fund accounting; (c) the Funds’ operating expenses; (d) the resources devoted to, and compliance reports relating to, the Funds’ investment objectives, policies and restrictions; (e) the Funds’ compliance with their Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of the Funds’ valuation and liquidity procedures; and (k) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 14, 2009 meeting, each Board requested and received materials specifically relating to the Agreements. Each Board is engaged in an ongoing process with BlackRock to continuously review the nature and scope of the information provided to better assist their deliberations. The materials provided in connection with the April meeting included: (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on Fund fees and expenses, and the investment performance of each Fund as compared with a peer group of funds as determined by Lipper and, where applicable, a customized peer group selected by BlackRock (collectively, “Peers”); (b) information on the profitability of the Agreements to BlackRock and a discussion of fall-out benefits to BlackRock and its affiliates and significant shareholders; (c) a general analysis provided by BlackRock concerning investment advisory fees charged to other clients, such as institutional clients and open-end funds, under similar investment mandates, as well as the performance of such other clients; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by each Fund to BlackRock; and (f) an internal comparison of management fees classified by Lipper, if applicable.

At an in-person meeting held on April 14, 2009, each Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the April 14, 2009 meeting, the Boards presented BlackRock with questions and requests for additional information and BlackRock responded to these requests with additional written information in advance of the May 28 – 29, 2009 Board meeting.

At an in-person meeting held on May 28 – 29, 2009, each Fund’s Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and such Fund and the Sub-Advisory Agreement between such Fund, the Manager and the Sub-Advisor(s), each for a one-year term ending June 30, 2010. The Boards considered all factors they believed relevant with respect to the Funds, including, among other factors: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Fund and BlackRock portfolio management; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and certain affiliates from their relationship with the Fund; (d) economies of scale; and (e) other factors.

 

 

 




72

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

Each Board also considered other matters it deemed important to the approval process, such as services related to the valuation and pricing of its respective Fund’s portfolio holdings, direct and indirect benefits to BlackRock and its affiliates and significant shareholders from their relationship with such Fund and advice from independent legal counsel with respect to the review process and materials submitted for the Board’s review. The Boards noted the willingness of BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as controlling, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services: Each Board, including its Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of its respective Fund. Throughout the year, each Board compared its respective Fund’s performance to the performance of a comparable group of closed-end funds, and the performance of a relevant benchmark, if any. The Boards met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. Each Board also reviewed the materials provided by its respective Fund’s portfolio management team discussing such Fund’s performance and such Fund’s investment objective, strategies and outlook.

Each Board considered, among other factors, the number, education and experience of BlackRock’s investment personnel generally and its respective Fund’s portfolio management team, investments by portfolio managers in the funds they manage, BlackRock’s portfolio trading capabilities, BlackRock’s use of technology, BlackRock’s commitment to compliance and BlackRock’s approach to training and retaining portfolio managers and other research, advisory and management personnel. Each Board also reviewed a general description of BlackRock’s compensation structure with respect to its respective Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent.

In addition to advisory services, each Board considered the quality of the administrative and non-investment advisory services provided to its respective Fund. BlackRock and its affiliates and significant shareholders provide the Funds with certain administrative and other services (in addition to any such services provided to the Funds by third parties) and officers and other personnel as are necessary for the operations of the Funds. In addition to investment advisory services, BlackRock and its affiliates provide the Funds with other services, including: (i) preparing disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of the Funds; (iii) assisting with daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; and (viii) performing other administrative functions necessary for the operation of the Funds, such as tax reporting, fulfilling regulatory filing requirements, and call center services. The Boards reviewed the structure and duties of BlackRock’s fund administration, accounting, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: Each Board, including its Independent Board Members, also reviewed and considered the performance history of its respective Fund. In preparation for the April 14, 2009 meeting, the Boards were provided with reports, independently prepared by Lipper, which included a comprehensive analysis of each Fund’s performance. The Boards also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In connection with its review, each Board received and reviewed information regarding the investment performance of its respective Fund as compared to a representative group of similar funds as determined by Lipper and to all funds in such Fund’s applicable Lipper category and, where applicable, a customized peer group selected by BlackRock. Each Board was provided with a description of the methodology used by Lipper to select peer funds. Each Board regularly reviews the performance of its respective Fund throughout the year.

The Board of MUI noted that, in general, MUI performed better than its Peers in that MUI’s performance was at or above the median of its customized Lipper peer group composite in two of the one-, three- and five-year periods reported.

The Board of each of APX and MUA noted that, in general, APX and MUA performed better than their respective Peers in that the performance of each of APX and MUA was at or above the median of its respective Lipper Performance Universe composite in each of the one-, three- and five-year periods reported.

The Board of each of MHD, MUH and MVT noted that, in general, MHD, MUH, and MVT performed better than their respective Peers in that the performance of each of MHD, MUH, and MVT was at or above the median of its respective customized Lipper peer group composite in each of the one-, three- and five-year periods reported.

The Board of MEN noted that MEN performed below the median of its customized Lipper peer group composite in the one-, three- and five-year periods reported. The Board and BlackRock reviewed the reasons for MEN’s underperformance during these periods compared with its Peers. The Board was informed that, among other things, over-exposure to the long-end of the municipal curve, an overweight on insured bonds with weaker underlying credits and the underperformance of municipal cash relative to MEN’s Bond Market Association hedges all negatively impacted MEN’s performance.

The Board of MUS noted that MUS performed below the median of its customized Lipper peer group composite in the one-, three- and five-year periods reported. The Board and BlackRock reviewed the reasons for MUS’s underperformance during these periods compared with its Peers. The Board was informed that, among other things, overweight positions in the hospital and housing sectors and poor performance of some insured and AMT bonds held by MUS negatively impacted MUS’s performance.

 

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

73




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

For MEN and MUS the Board of each Fund and BlackRock discussed BlackRock’s commitment to providing the resources necessary to assist the portfolio managers and to improve each such Fund’s performance.

C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds: Each Board, including its Independent Board Members, reviewed its respective Fund’s contractual advisory fee rates compared with the other funds in its respective Lipper category. Each Board also compared its respective Fund’s total expenses, as well as actual management fees, to those of other comparable funds. Each Board considered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including separately managed institutional accounts.

The Boards received and reviewed statements relating to BlackRock’s financial condition and profitability with respect to the services it provided the Funds. The Boards were also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Funds. The Boards reviewed BlackRock’s profitability with respect to the Funds and other funds the Boards currently oversee for the year ended December 31, 2008 compared to available aggregate profitability data provided for the year ended December 31, 2007. The Boards reviewed BlackRock’s profitability with respect to other fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Manager, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited.

The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available. Nevertheless, to the extent such information is available, the Boards considered BlackRock’s overall operating margin, in general, compared to the operating margin for leading investment management firms whose operations include advising closed-end funds, among other product types. The comparison indicated that operating margins for BlackRock with respect to its registered funds are generally consistent with margins earned by similarly situated publicly traded competitors. In addition, the Boards considered, among other things, certain third-party data comparing BlackRock’s operating margin with that of other publicly-traded asset management firms, which concluded that larger asset bases do not, in themselves, translate to higher profit margins.

In addition, the Boards considered the cost of the services provided to the Funds by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management and distribution of the Funds and the other funds advised by BlackRock and its affiliates. As part of their analysis, the Boards reviewed BlackRock’s methodology in allocating its costs to the management of the Funds. The Boards also considered whether BlackRock has the financial resources necessary to attract and retain high-quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Boards.

Each Board noted that its respective Fund paid contractual management fees, which do not take into account any expense reimbursement or fee waivers, lower than or equal to the median contractual management fees paid by such Fund’s Peers.

D. Economies of Scale: Each Board, including its Independent Board Members, considered the extent to which economies of scale might be realized as the assets of its respective Fund increase and whether there should be changes in the advisory fee rate or structure in order to enable such Fund to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the assets of such Fund. The Boards considered that the funds in the BlackRock fund complex share some common resources and, as a result, an increase in the overall size of the complex could permit each fund to incur lower expenses than it would otherwise as a stand-alone entity. The Boards also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations.

The Boards noted that most closed-end fund complexes do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering and each fund is managed independently, consistent with its own investment objectives. The Boards noted that only one closed-end fund in the Fund Complex has breakpoints in its fee structure. Information provided by Lipper also revealed that only one closed-end fund complex used a complex-level breakpoint structure.

E. Other Factors: The Boards also took into account other ancillary or “fallout” benefits that BlackRock or its affiliates and significant shareholders may derive from their relationship with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates and significant shareholders as service providers to the Funds, including for administrative and distribution services. The Boards also noted that BlackRock may use third-party research obtained by soft dollars generated by certain mutual fund transactions to assist itself in managing all or a number of its other client accounts.

In connection with their consideration of the Agreements, the Boards also received information regarding BlackRock’s brokerage and soft dollar practices. The Boards received reports from BlackRock, which included information on brokerage commissions and trade execution practices throughout the year.

 

 

 




74

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

Conclusion

Each Board, including its Independent Board Members, unanimously approved the continuation of the Advisory Agreement between its respective Fund and the Manager for a one-year term ending June 30, 2010 and the Sub-Advisory Agreement between such Fund, the Manager and such Fund’s Sub-Advisor for a one-year term ending June 30, 2010. Based upon its evaluation of all these factors in their totality, each Board, including its Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of its respective Fund and its shareholders. In arriving at a decision to approve the Agreements, each Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination. The contractual fee arrangements for each Fund reflects the results of several years of review by such Fund’s Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. Certain aspects of the arrangements may be the subject of more attention in some years than in others, and the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.

 

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

75




 


 

Officers and Directors

 

Richard E. Cavanagh, Chairman of the Board and Director

Karen P. Robards, Vice Chair of the Board, Chair of the Audit Committee and Director

G. Nicholas Beckwith, III, Director

Richard S. Davis, Director

Kent Dixon, Director and Member of the Audit Committee

Frank J. Fabozzi, Director and Member of the Audit Committee

Kathleen F. Feldstein, Director

James T. Flynn, Director and Member of the Audit Committee

Henry Gabbay, Director

Jerold B. Harris, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director and Member of the Audit Committee

Anne F. Ackerley, President and Chief Executive Officer

Brendan Kyne, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Brian P. Kindelan, Chief Compliance Officer

Howard B. Surloff, Secretary

 

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

 

Sub-Advisor

BlackRock Investment Management, LLC

Plainsboro, NJ 08536

 

Custodians

State Street Bank and Trust Company1

Boston, MA 02101

 

The Bank of New York Mellon2

New York, NY 10286

 

Transfer Agent

Common Shares:

Computershare Trust Companies, N.A.1

Providence, RI 02940

 

BNY Mellon Shareowner Services2

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


 

 

1

For MEN and MUI.

 

2

For APX, MUA, MHD, MUH, MUS and MVT.


 

 

 


 

 

 

 

Effective July 31, 2009, Donald C. Burke, President and Chief Executive Officer of the Funds retired. The Funds’ Board wishes Mr. Burke well in his retirement.

 

 

 

 

 

Effective August 1, 2009, Anne F. Ackerley became President and Chief Executive Officer of the Funds, and Brendan Kyne became Vice President of the Funds.

 

 

 

 



 

 

 




76

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

Additional Information

 


Proxy Results


The Annual Meeting of Shareholders was held on August 26, 2009 for shareholders of record on June 29, 2009 to elect director or trustee nominees of each Fund/Trust:

Approved the Class II Directors/Trustees as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



















 

 

Richard S. Davis

 

Frank J. Fabozzi

 

James T. Flynn

 

Karen P. Robards

 

 

 


 


 


 


 

 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 



















APX

 

17,327,327

 

660,298

 

17,327,327

 

660,298

 

17,275,753

 

711,872

 

17,243,745

 

743,880

 

MUA

 

18,694,027

 

803,094

 

18,694,027

 

803,094

 

18,735,146

 

761,975

 

18,748,138

 

748,983

 



















 

Approved the Directors as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

G. Nicholas Beckwith, III

 

Richard E. Cavanagh

 

Richard S. Davis

 

 

 


 


 


 

 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















MEN

 

25,824,182

 

1,194,086

 

25,797,168

 

1,221,100

 

25,721,162

 

1,297,106

 

MHD

 

12,176,125

 

634,278

 

12,204,329

 

606,074

 

12,126,599

 

683,804

 

MUH

 

9,598,904

 

413,769

 

9,595,244

 

417,429

 

9,506,287

 

506,386

 

MUS

 

10,894,261

 

898,833

 

10,848,014

 

945,080

 

10,851,219

 

941,875

 

MUI

 

33,801,462

 

1,901,852

 

33,792,030

 

1,911,284

 

33,789,362

 

1,913,952

 

MVT

 

17,862,425

 

724,815

 

17,812,708

 

774,532

 

17,871,610

 

715,630

 















 

 

Kent Dixon

 

Frank J. Fabozzi

 

Kathleen F. Feldstein

 

 

 


 


 


 

 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















MEN

 

25,719,934

 

1,298,334

 

4,295

1

116

1

25,785,461

 

1,232,807

 

MHD

 

12,153,322

 

657,081

 

1,788

1

1

1

12,169,245

 

641,158

 

MUH

 

9,580,309

 

432,364

 

1,086

1

17

1

9,600,617

 

412,056

 

MUS

 

10,795,869

 

997,225

 

2,620

1

1

1

10,834,677

 

958,417

 

MUI

 

33,641,737

 

2,061,577

 

6,322

1

14

1

33,770,645

 

1,932,669

 

MVT

 

17,840,821

 

746,419

 

4,314

1

85

1

17,746,355

 

840,885

 















 

 

James T. Flynn

 

Henry Gabbay

 

Jerrold B. Harris

 

 

 


 


 


 

 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















MEN

 

25,815,081

 

1,203,187

 

25,708,966

 

1,309,302

 

25,795,266

 

1,223,002

 

MHD

 

12,183,455

 

626,948

 

12,129,120

 

681,283

 

12,194,406

 

615,997

 

MUH

 

9,592,227

 

420,446

 

9,506,287

 

506,386

 

9,598,904

 

413,769

 

MUS

 

10,824,058

 

969,036

 

10,851,219

 

941,875

 

10,881,015

 

912,079

 

MUI

 

33,678,808

 

2,024,506

 

33,772,100

 

1,931,214

 

33,743,334

 

1,959,980

 

MVT

 

17,842,221

 

745,019

 

17,834,055

 

753,185

 

17,851,118

 

736,122

 















 

 

R. Glenn Hubbard

 

W. Carl Kester

 

Karen P. Robards

 

 

 


 


 


 

 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















MEN

 

25,807,542

 

1,210,726

 

4,274

1

137

1

25,837,049

 

1,181,219

 

MHD

 

12,204,978

 

605,425

 

1,788

1

1

1

12,213,546

 

596,857

 

MUH

 

9,594,404

 

418,269

 

1,086

1

17

1

9,604,467

 

408,206

 

MUS

 

10,843,190

 

949,904

 

2,620

1

1

1

10,839,511

 

953,583

 

MUI

 

33,760,864

 

1,942,450

 

6,322

1

14

1

33,797,096

 

1,906,218

 

MVT

 

17,807,533

 

779,707

 

4,314

1

85

1

17,767,856

 

819,384

 















 

1     Voted on by holders of Preferred Shares only.

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

77




 


 

Additional Information (continued)

 


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.

 


General Information


Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it 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 contact the Funds at (800) 441-7762.

Availability of Quarterly 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 (202) 551-8090. 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 toll-free (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.


 

 

 

 

 

 

 

 




78

SEMI-ANNUAL REPORT

OCTOBER 31, 2009




 


 

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.

 

 

 




SEMI-ANNUAL REPORT

OCTOBER 31, 2009

79



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)

 

 



 

#CEMUN18-10/09




 

 

Item 2 –

Code of Ethics – Not Applicable to this semi-annual report

 

 

Item 3 –

Audit Committee Financial Expert – Not Applicable to this semi-annual report

 

 

Item 4 –

Principal Accountant Fees and Services – Not Applicable to this semi-annual report

 

 

Item 5 –

Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

 

 

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 – Not Applicable to this semi-annual report

 

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies – Not Applicable to this semi-annual report

 

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

 

 

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 – Not Applicable to this semi-annual report

 

 

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 MuniAssets Fund, Inc.

 

 

By:

/s/ Anne F. Ackerley

 

 


 

 

Anne F. Ackerley

 

 

Chief Executive Officer of

 

 

BlackRock MuniAssets Fund, Inc.

 

 

 

Date: December 21, 2009

 

 

 

 

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 MuniAssets Fund, Inc.

 

 

 

Date: December 21, 2009

 

 

 

 

By:

/s/ Neal J. Andrews

 

 


 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

BlackRock MuniAssets Fund, Inc.

 

 

 

Date: December 21, 2009