UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-05739

 

Name of Fund: BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock MuniEnhanced Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

 

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

 

Date of fiscal year end: 04/30/2009

 

Date of reporting period: 04/30/2009

 

Item 1 – Report to Stockholders


 

 

EQUITIES  FIXED  INCOME  REAL  ESTATE  LIQUIDITY  ALTERNATIVES  BLACKROCK  SOLUTIONS

 

 

 

 

Annual Report

(BLACKROCK LOGO)

 

 

APRIL 30, 2009

 

 

 

BlackRock Apex Municipal Fund, Inc. (APX)

 

 

 

BlackRock MuniAssets Fund, Inc. (MUA)

 

 

 

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

 

 

BlackRock MuniHoldings Fund, Inc. (MHD)

 

 

 

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

 

 

BlackRock MuniHoldings Insured Fund, Inc. (MUS)

 

 

 

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

 

 

BlackRock MuniVest Fund II, Inc. (MVT)

 

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE


 


 

Table of Contents


 

 

 

 





 

 

Page

 





Dear Shareholder

 

3

 

Annual Report:

 

 

 

Fund Summaries

 

4

 

The Benefits and Risks of Leveraging

 

12

 

Derivative Instruments

 

12

 

Financial Statements:

 

 

 

Schedules of Investments

 

13

 

Statements of Assets and Liabilities

 

51

 

Statements of Operations

 

53

 

Statements of Changes in Net Assets

 

55

 

Statements of Cash Flows

 

59

 

Financial Highlights

 

60

 

Notes to Financial Statements

 

68

 

Report of Independent Registered Public Accounting Firm

 

77

 

Important Tax Information

 

79

 

Automatic Dividend Reinvestment Plans

 

80

 

Officers and Directors

 

81

 

Additional Information

 

84

 


 

 

 




2

ANNUAL REPORT

APRIL 30, 2009



 


 

Dear Shareholder

The past 12 months reveal a tale of two markets — one of investor pessimism and decided weakness, and another of optimism and some early signs of recovery. The majority of the past year was characterized by the former as the global financial crisis erupted into the worst recession in decades. Economic data were uniformly poor and daily headlines recounted the downfalls of storied financial firms, volatile swings in global financial markets, and monumental government actions that included widespread (and globally coordinated) monetary and quantitative easing by central banks and large-scale fiscal stimuli. Sentiment improved noticeably in March 2009, however, on the back of new program announcements by the Treasury and Federal Reserve Board, as well as signs of improved economic performance, such as in retail sales, consumer confidence and select areas of the housing market.

Against this backdrop, US equities contended with unprecedented levels of volatility, posting steep declines early, and then pared some of those losses in March and April. The experience in international markets was similar to that in the United States, though there was a marked divergence in regional performance. Notably, emerging economies, which lagged most developed regions through the downturn, were among the market leaders during the late-period rally.

In fixed income markets, while risk aversion remained a dominant theme overall, relatively attractive yields and distressed valuations, alongside a more favorable macro environment, eventually captured investor attention, leading to a modest recovery in non-Treasury assets. A notable example from the opposite end of the credit spectrum was the high yield sector, which generally outperformed in the first four months of 2009 after extraordinary challenges and severe underperformance last year. At the same time, the new year ushered in a return to normalcy for the tax-exempt market, which had registered one of its worst years on record in 2008.

All told, the major benchmark indexes posted mixed results for the current reporting period, reflective of a bifurcated market.

 

 

 

 

 

 

 

 

Total Returns as of April 30, 2009

 

6-month

 

12-month

 









US equities (S&P 500 Index)

 

(8.53

)%

 

(35.31

)%

 









Small cap US equities (Russell 2000 Index)

 

(8.40

)

 

(30.74

)

 









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

 

(2.64

)

 

(42.76

)

 









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

 

8.98

 

 

9.30

 

 









Taxable fixed income (Barclays Capital US Aggregate Bond Index)

 

7.74

 

 

3.84

 

 









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

 

8.20

 

 

3.11

 

 









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

 

16.39

 

 

(12.55

)

 









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

On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). Barclays also notified BlackRock that its Board will recommend the transaction to Barclays’ shareholders for approval at a special meeting to be held in early August 2009. The combination of BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is expected to close in the fourth quarter 2009 following approval by Barclays’ shareholders, the receipt of client consents and regulatory approvals, and satisfaction of customary closing conditions.

Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. We thank you for entrusting BlackRock with your investments and look forward to continuing to serve you in the months and years ahead.

Sincerely,

-s- Rob Kapito

Rob Kapito
President, BlackRock Advisors, LLC

 

 

 




 

THIS PAGE NOT PART OF YOUR FUND REPORT

3



 

 


 

Fund Summary as of April 30, 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 is exempt from federal income taxes in the opinion of bond counsel to the issuer. No assurance can be given that the Fund’s investment objective will be achieved.

The Fund’s year end was changed to April 30.

 


Performance


For the 10 months ended April 30, 2009, the Fund returned (11.58)% based on market price and (10.81)% 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 (17.67)% on a market price basis and (16.21)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Factors that contributed to the Fund’s outperformance included an up-in-quality bias and a below-market duration stance, offset somewhat by a moderately below-average distribution yield. Recent efforts to lengthen duration and increase credit risk exposure have proven to be beneficial, given the sharp recovery in credit spreads and overall improved market tone.

 

 

 

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

 

 

APX

 

Initial Offering Date

 

 

July 25, 1989

 

Yield on Closing Market Price as of April 30, 2009 ($7.72)1

 

 

7.23%

 

Tax Equivalent Yield2

 

 

11.12%

 

Current Monthly Distribution per Common Share3

 

 

$0.0465

 

Current Annualized Distribution per Common Share3

 

 

$0.5580

 

Leverage as of April 30, 20094

 

 

5%

 







 

 

 

 

1

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

 

 

 

 

2

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

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

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

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

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/09

 

6/30/08

 

Change

 

High

 

Low

 













Market Price

 

$

7.72

 

$

9.28

 

 

(16.81

)%

$

9.70

 

$

5.55

 

Net Asset Value

 

$

7.67

 

$

9.14

 

 

(16.08

)%

$

9.21

 

$

6.91

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/09

 

6/30/08

 







Corporate

 

24

%

 

21

%

 

Health

 

22

 

 

26

 

 

County/City/Special District/School District

 

20

 

 

23

 

 

Transportation

 

11

 

 

9

 

 

Education

 

6

 

 

5

 

 

Housing

 

6

 

 

7

 

 

Utilities

 

6

 

 

4

 

 

Tobacco

 

3

 

 

2

 

 

State

 

2

 

 

3

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/09

 

6/30/08

 







AAA/Aaa

 

7

%

 

7

%

 

AA/Aa

 

5

 

 

7

 

 

A/A

 

12

 

 

4

 

 

BBB/Baa

 

23

 

 

18

 

 

BB/Ba

 

10

 

 

11

 

 

B/B

 

5

 

 

5

 

 

CCC/Caa

 

3

 

 

4

 

 

CC/Ca

 

 

 

1

 

 

Not Rated6

 

35

 

 

43

 

 










 

 

 

 

5

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

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2009 and June 30, 2008, the market value of these securities was $8,923,111 representing 6% and $8,940,500, representing 5%, respectively, of the Fund’s long-term investments.


 

 

 


4

ANNUAL REPORT

APRIL 30, 2009



 

 


 

Fund Summary as of April 30, 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.

The Fund’s year end was changed to April 30.

 


Performance


For the 11 months ended April 30, 2009, the Fund returned (12.45)% based on market price and (11.29)% based on NAV. For the same period, the closed-end Lipper High Yield Municipal Debt Funds category posted an average return of (18.93)% on a market price basis and (17.73)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Factors contributing to the Fund’s outperformance include an up-in-quality bias and a below-market duration stance, offset somewhat by a moderately below-average distribution yield. Recent efforts to lengthen duration and increase credit risk exposure have proven to be beneficial, given the sharp recovery in credit spreads and overall improved market tone.

 

 

 

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

 

 

MUA

 

Initial Offering Date

 

 

June 25, 1993

 

Yield on Closing Market Price as of April 30, 2009 ($10.91)1

 

 

7.42%

 

Tax Equivalent Yield2

 

 

11.42%

 

Current Monthly Distribution per Common Share3

 

 

$0.0675

 

Current Annualized Distribution per Common Share3

 

 

$0.8100

 

Leverage as of April 30, 20094

 

 

5%

 







 

 

 

 

1

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

 

 

 

 

2

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

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

4/30/09

 

5/31/08

 

Change

 

High

 

Low

 


















Market Price

 

$

10.91

 

$

13.35

 

 

(18.28

)%

$

13.55

 

$

7.28

 

Net Asset Value

 

$

10.59

 

$

12.79

 

 

(17.20

)%

$

12.84

 

$

9.54

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/09

 

5/31/08

 







Corporate

 

26

%

 

27

%

 

Health

 

25

 

 

26

 

 

County/City/Special District/School District

 

18

 

 

19

 

 

Transportation

 

12

 

 

6

 

 

Utilities

 

7

 

 

7

 

 

Education

 

4

 

 

9

 

 

Housing

 

4

 

 

1

 

 

State

 

2

 

 

3

 

 

Tobacco

 

2

 

 

2

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/09

 

5/31/08

 









AAA/Aaa

 

9

%

 

12

%

 

AA/Aa

 

3

 

 

4

 

 

A/A

 

19

 

 

7

 

 

BBB/Baa

 

19

 

 

15

 

 

BB/Ba

 

9

 

 

10

 

 

B/B

 

5

 

 

5

 

 

CCC/Caa

 

3

 

 

4

 

 

CC/Ca

 

1

 

 

 

 

Not Rated6

 

32

 

 

43

 

 










 

 

 

 

5

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

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2009 and May 31, 2008 the market value of these securities was $12,884,659 representing 6% and $12,388,252 representing 5%, respectively, of the Fund’s long-term investments.


 

 

 


ANNUAL REPORT

APRIL 30, 2009

5



 

 


 

Fund Summary as of April 30, 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 is exempt from federal income taxes in the opinion of the bond counsel to the issuer. No assurance can be given that the Fund’s investment objective will be achieved.

The Fund’s year end was changed to April 30.

 


Performance


For the three months ended April 30, 2009, the Fund returned 8.48% based on market price and 8.40% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 6.96% on a market price basis and 5.92% 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. During the period, the Fund benefited from its above-average yield. Performance also was aided by our constructive market positioning during a period of declining yields, a higher-than-average exposure to the longer end of the yield curve (as it flattened) and, finally, the stabilization of credit spreads, which began to tighten toward the end of the period. The Fund is more sensitive to credit spreads, in general, since the downgrades of the monoline insurers and, in particular, because of greater-than-average exposure to weaker underlying insured bonds. The municipal market generally returned to more typical functioning after an extended period of volatility, which allowed us to continue upgrading the Fund’s overall credit quality.

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

 

 

MEN

 

Initial Offering Date

 

 

March 2, 1989

 

Yield on Closing Market Price as of April 30, 2009 ($8.88)1

 

 

5.81%

 

Tax Equivalent Yield2

 

 

8.94%

 

Current Monthly Distribution per Common Share3

 

 

$0.043

 

Current Annualized Distribution per Common Share3

 

 

$0.516

 

Leverage as of April 30, 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 Monthly Distribution per Share, declared on June 1, 2009, was increased to $0.0505. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

4

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/09

 

1/31/09

 

Change

 

High

 

Low

 


















Market Price

 

$

8.88

 

$

8.31

 

6.86

%

$

8.99

 

$

7.59

 

Net Asset Value

 

$

9.77

 

$

9.15

 

6.78

%

$

9.94

 

$

9.14

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

4/30/09

 

1/31/09

 







County/City/Special District/School District

 

29

%

 

26

%

 

Transportation

 

23

 

 

24

 

 

State

 

21

 

 

22

 

 

Utilities

 

12

 

 

14

 

 

Corporate

 

4

 

 

4

 

 

Health

 

4

 

 

5

 

 

Housing

 

4

 

 

3

 

 

Education

 

2

 

 

1

 

 

Tobacco

 

1

 

 

1

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

4/30/09

 

1/31/09

 







AAA/Aaa

 

45

%

47

%

AA/Aa

 

33

 

30

 

A/A

 

19

 

20

 

BBB/Baa

 

3

 

3

 








 

 

 

 

5

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


 

 

 


6

ANNUAL REPORT

APRIL 30, 2009



 

 


 

 

Fund Summary as of April 30, 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 12 months ended April 30, 2009, the Fund returned (12.97)%, based on market price and (6.24)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (9.85)% on a market price basis and (9.02)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Portfolio positioning, with respect to duration, was generally neutral, while a bias toward limiting exposure to longer-dated bonds proved to be beneficial, given a steepening yield curve environment. In general, the Fund’s credit profile consistently reflected a high level of exposure to the lower end of the ratings spectrum. While this strategy generates an above-average dividend yield, it also subjects the Fund to additional volatility during periods when credit spreads are fluctuating. Consequently, performance tended to suffer late in 2008 when spreads widened, but more recently, the strong rebound in lower-rated bonds allowed the Fund to generate a strong competitive return, while maintaining the historically attractive dividend.

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

 

MHD

Initial Offering Date

 

May 2, 1997

Yield on Closing Market Price as of April 30, 2009 ($11.97)1

 

7.12%

Tax Equivalent Yield2

 

10.95%

Current Monthly Distribution per Common Share3

 

$0.071

Current Annualized Distribution per Common Share3

 

$0.852

Leverage as of April 30, 20094

 

40%





 

 

 

 

1

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

 

 

 

 

2

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

 

 

 

 

3

The Monthly Distribution per Share, declared on June 1, 2009, was increased to $0.0835. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

4

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/09

 

4/30/08

 

Change

 

High

 

Low

 













Market Price

 

$

11.97

 

$

14.77

 

(18.96

)%

$

15.20

 

$

7.53

 

Net Asset Value

 

$

13.27

 

$

15.20

 

(12.70

)%

$

15.36

 

$

11.11

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/09

 

4/30/08

 







Health

 

19

%

 

19

%

 

Corporate

 

15

 

 

20

 

 

County/City/Special District/School District

 

13

 

 

25

 

 

Transportation

 

11

 

 

7

 

 

State

 

10

 

 

8

 

 

Utilities

 

10

 

 

7

 

 

Education

 

9

 

 

4

 

 

Housing

 

9

 

 

5

 

 

Tobacco

 

4

 

 

5

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/09

 

4/30/08

 







AAA/Aaa

 

29

%

 

40

%

 

AA/Aa

 

21

 

 

12

 

 

A/A

 

24

 

 

18

 

 

BBB/Baa

 

10

 

 

8

 

 

BB/Ba

 

2

 

 

1

 

 

B/B

 

1

 

 

2

 

 

CCC/Caa

 

2

 

 

2

 

 

Not Rated6

 

11

 

 

17

 

 










 

 

 

 

5

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

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2009 and 2008, the market value of these securities was $6,532,075 representing 2% and $10,735,995 representing 3%, respectively, of the Fund’s long-term investments.


 

 

 




ANNUAL REPORT

APRIL 30, 2009

7



 

 


 

Fund Summary as of April 30, 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.

The Fund’s year end was changed to April 30.

 


Performance


For the nine months ended April 30, 2009, the Fund returned (7.99)% based on market price and (3.55)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (6.02)% on a market price basis and (7.10)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Portfolio positioning, with respect to duration, was generally neutral, while a bias toward limiting exposure to longer-dated bonds proved to be beneficial, given a steepening yield curve environment. In general, the Fund’s credit profile consistently reflected a high level of exposure to the lower end of the ratings spectrum. While this strategy generates an above-average dividend yield, it also subjects the Fund to additional volatility during periods when credit spreads are fluctuating. Consequently, performance tended to suffer late in 2008 when spreads widened, but more recently, the strong rebound in lower-rated bonds allowed the Fund to generate a strong competitive return, while maintaining the historically attractive dividend.

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

 

MUH

Initial Offering Date

 

February 27, 1998

Yield on Closing Market Price as of April 30, 2009 ($11.33)1

 

6.67%

Tax Equivalent Yield2

 

10.26%

Current Monthly Distribution per Common Share3

 

$0.063

Current Annualized Distribution per Common Share3

 

$0.756

Leverage as of April 30, 20094

 

38%





 

 

 

 

1

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

 

 

 

 

2

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

 

 

 

 

3

The Monthly Distribution per Share, declared on June 1, 2009, was increased to $0.0755. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

4

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/09

 

7/31/08

 

Change

 

High

 

Low

 













Market Price

 

$

11.33

 

$

13.01

 

(12.91

)%

$

13.15

 

$

7.08

 

Net Asset Value

 

$

12.47

 

$

13.66

 

(8.71

)%

$

13.95

 

$

10.46

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/09

 

7/31/08

 







Health

 

18

%

 

20

%

 

County/City/Special District/School District

 

16

 

 

25

 

 

Transportation

 

13

 

 

9

 

 

Corporate

 

11

 

 

14

 

 

Education

 

11

 

 

5

 

 

State

 

10

 

 

7

 

 

Utilities

 

9

 

 

9

 

 

Housing

 

8

 

 

7

 

 

Tobacco

 

4

 

 

4

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/09

 

7/31/08

 







AAA/Aaa

 

26

%

 

37

%

 

AA/Aa

 

26

 

 

20

 

 

A/A

 

25

 

 

18

 

 

BBB/Baa

 

10

 

 

8

 

 

BB/Ba

 

1

 

 

1

 

 

B/B

 

2

 

 

1

 

 

CCC/Caa

 

1

 

 

2

 

 

Not Rated6

 

9

 

 

13

 

 










 

 

 

 

5

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

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2009 and July 31, 2008, the market value of these securities was $4,974,331 representing 2% and $4,249,701 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 


8

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Fund Summary as of April 30, 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 12 months ended April 30, 2009, the Fund returned (3.97)%, based on market price and (2.52)% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (2.77)% on a market price basis and (3.22)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Sector allocation continued to play a significant role in determining how the Fund performed during the past year. The Fund was significantly overweight in pre-refunded securities within the one- to five-year maturity range, which benefited comparative performance. Notably, according to the S&P/Investor Tools Main Municipal Bond Index, the pre-refunded sector was the best-performing sector for the past twelve months. Conversely, exposure to healthcare and housing issues detracted from results for the period. At period end, the Fund’s cash position remains elevated and will be deployed opportunistically.

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

 

 

MUS

 

Initial Offering Date

 

 

May 1, 1998

 

Yield on Closing Market Price as of April 30, 2009 ($10.87)1

 

 

5.35%

 

Tax Equivalent Yield2

 

 

8.23%

 

Current Monthly Distribution per Common Share3

 

 

$0.0485

 

Current Annualized Distribution per Common Share3

 

 

$0.5820

 

Leverage as of April 30, 20094

 

 

43%

 







 

 

 

 

1

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

 

 

 

 

2

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

 

 

 

 

3

The Monthly Distribution per Share, declared on June 1, 2009, was increased to $0.066. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

4

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/09

 

4/30/08

 

Change

 

High

 

Low

 













Market Price

 

$

10.87

 

$

11.97

 

(9.19

)%

 

$

12.23

 

$

6.84

 

Net Asset Value

 

$

12.27

 

$

13.31

 

(7.81

)%

 

$

13.51

 

$

9.70

 


















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

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

4/30/09

 

4/30/08

 









County/City/Special District/School District

 

 

   42%

 

 

    39%

 

Transportation

 

 

17

 

 

17

 

Utilities

 

 

14

 

 

  9

 

State

 

 

12

 

 

17

 

Health

 

 

  7

 

 

  6

 

Housing

 

 

  6

 

 

  9

 

Corporate

 

 

  2

 

 

  2

 

Education

 

 

—  

 

 

  1

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

4/30/09

 

4/30/08

 









AAA/Aaa

 

 

   50%

 

 

  83%

 

AA/Aa

 

 

39

 

 

8

 

A/A

 

 

 6

 

 

8

 

BBB/Baa

 

 

 4

 

 

1

 

Not Rated

 

 

   16

 

 

—  

 










 

 

 

 

5

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

 

 

 

 

6

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


 

 

 




ANNUAL REPORT

APRIL 30, 2009

9



 

 



 

 

Fund Summary as of April 30, 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.

The Fund’s year end was changed to April 30.

 


Performance


For the 11 months ended April 30, 2009, the Fund returned (9.21)% based on market price and (4.56)% based on NAV. For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of (2.86)% on a market price basis and (3.27)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Negatively affecting the Fund’s performance were its lower-rated holdings, which underperformed the market as credit spreads widened and liquidity became scarcer. The Fund’s underweight in tax-backed and utility credits, which were some of the better-performing sectors, also hindered results. Adding to returns were the Fund’s overweight in pre-refunded bonds, a greater-than-average distribution rate and its largely neutral duration positioning during a period of extreme volatility and historical municipal underperformance versus Treasuries. Many of the trends in place at the close of the calendar year showed signs of reversing as liquidity returned to the municipal market and credit spreads began to narrow. We seek to capitalize on opportunities in the new-issue market as anxious issuers, prohibited from issuing debt due to recent market forces, have provided many attractive values in their rush to tap the loosening credit markets. The Fund maintains a neutral to slightly long duration bias.

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

 

 

MUI

 

Initial Offering Date

 

 

August 1, 2003

 

Yield on Closing Market Price as of April 30, 2009 ($11.77)1

 

 

5.91%

 

Tax Equivalent Yield2

 

 

9.09%

 

Current Monthly Distribution per Common Share3

 

 

$0.058

 

Current Annualized Distribution per Common Share3

 

 

$0.696

 

Leverage as of April 30, 20094

 

 

41%

 



 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

Past performance does not guarantee future results.

 

 

 

 

2

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

 

 

 

 

3

The Monthly Distribution per Share, declared on June 1, 2009, was increased to $0.0655. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

4

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

4/30/09

 

5/31/08

 

Change

 

High

 

Low

 


















Market Price

 

$

11.77

 

$

13.70

 

(14.09

)%

 

$

13.78

 

$

7.82

 

Net Asset Value

 

$

13.05

 

$

14.45

 

(9.69

)%

 

$

14.51

 

$

11.49

 


















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

 

 

 




Sector Allocations

 

 




 

 

 

 

4/30/09

5/31/08




City/County/Special/District/School District

   25%

   21%

Industrial & Pollution Control

23

22

Transportation

13

11

Corporate

11

13

Health

10

14

Utilities

  7

  7

Tobacco

  6

  6

Housing

  3

  3

Education

  2

  3





 

 

 




Credit Quality Allocations5

 

 





 

 

 

 

4/30/09

5/31/08




AAA/Aaa

   36%

   47%

AA/Aa

30

11

A/A

11

11

BBB/Baa

12

14

BB/Ba

  1

B/B

  1

  1

CCC/Caa

  1

  3

Not Rated6

  9

12





 

 

 

 

5

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

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2009 and May 31, 2008, the market value of these securities was $16,548,864 representing 2% and $20,190,323 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 


10

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Fund Summary as of April 30, 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.

The Fund’s year end was changed to April 30.

 


Performance


For the six months ended April 30, 2009, the Fund returned 24.49%, based on market price and 13.71% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 16.50% on a market price basis and 9.58% 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. Portfolio positioning, with respect to duration and yield curve, was generally neutral relative to the Fund’s peer group. In general, the Fund’s credit profile consistently reflected a high level of exposure to the lower end of the ratings spectrum. While this strategy generates an above-average dividend yield, it also subjects the Fund to additional volatility during periods when credit spreads are fluctuating. Consequently, performance tended to suffer late in 2008 when spreads widened, but more recently, the strong rebound in lower-rated bonds has allowed the Fund to generate a strong competitive return, while maintaining the historically attractive dividend.

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

MVT

Initial Offering Date

March 29, 1993

Yield on Closing Market Price as of April 30, 2009 ($11.65)1

7.31%

Tax Equivalent Yield2

11.25%

Current Monthly Distribution per Common Share3

$0.071

Current Annualized Distribution per Common Share3

$0.852

Leverage as of April 30, 20094

45%




 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

Past performance does not guarantee future results.

 

 

 

 

2

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

 

 

 

 

3

The Monthly Distribution per Share, declared on June 1, 2009, was increased to $0.0835. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

4

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

4/30/09

 

10/31/08

 

Change

 

High

 

Low

 













Market Price

 

$

11.65

 

$

9.75

 

19.49

%

 

$

12.00

 

$

7.51

 

Net Asset Value

 

$

11.95

 

$

10.95

 

9.13

%

 

$

11.95

 

$

9.76

 


















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

 

 

 




Sector Allocations

 

 




 

 

 

 

4/30/09

10/31/08




Health

   18%

   18%

Corporate

16

19

State

14

14

County/City/Special District/School District

13

14

Transportation

13

11

Utilities

11

11

Education

  6

  4

Housing

  5

  4

Tobacco

  4

  5





 

 

 




Credit Quality Allocations5

 

 





 

 

 

 

4/30/09

10/31/08




AAA/Aaa

  26%

  29%

AA/Aa

28

22

A/A

18

16

BBB/Baa

12

14

BB/Ba

  1

  2

B/B

  2

  1

Not Rated6

13

16





 

 

 

 

5

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

 

 

 

 

6

The investment advisor has deemed certain of these securities to be of investment grade quality. As of April 30, 2009 and October 31, 2008, the market value of these securities was $10,825,769 representing 3% and $9,997,993 representing 2%, respectively, of the Fund’s long-term investments.


 

 

 




ANNUAL REPORT

APRIL 30, 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 BlackRock Apex Municipal Fund, Inc. and BlackRock MuniAssets Fund, Inc., 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 yield.

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 Fund’s total portfolio of $150 million earns 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 yield.

Conversely, 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. If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental yield pickup on the Common Shares will be reduced or eliminated completely.

Furthermore, the value of the 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 Fund’s Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Fund’s NAV positively or negatively in addition to the impact on Fund performance from leverage from Preferred Shares discussed above.

The Funds may also, from time to time, 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 returns 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, the Funds’ net income will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders will be reduced. The Funds may be required to sell portfolio securities at inopportune times or below fair market values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Funds to incur losses. The use of leverage may limit the Funds’ 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 a Fund. The Funds will incur expenses in connection with the use of leverage, all of which are borne by the holders of the Common Shares and may reduce returns on the Common Shares.

Under the Investment Company Act of 1940, the Funds are permitted to issue Preferred Shares in an amount up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Fund anticipates that the total economic leverage from Preferred Shares and/or TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of April 30, 2009, the Funds had economic leverage from Preferred Shares and TOBs as a percentage of their total managed assets as follows:

 

 



 

Percent of
Leverage



BlackRock Apex Municipal Fund, Inc.

5%

BlackRock MuniAssets Fund, Inc.

5%

BlackRock MuniEnhanced Fund, Inc.

42%

BlackRock MuniHoldings Fund, Inc.

40%

BlackRock MuniHoldings Fund II, Inc.

38%

BlackRock MuniHoldings Insured Fund, Inc.

43%

BlackRock Muni Intermediate Duration Fund, Inc.

41%

BlackRock MuniVest Fund II, Inc.

45%




 


Derivative Instruments


The Funds may invest in various derivative instruments, including swap agreements and futures, and other instruments specified in 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, possible default of the other party to the transaction and illiquidity of the derivative instrument. The Funds’ ability to successfully use a derivative instrument depends on the 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 prices other than current market values, may limit the amount of appreciation a Fund can realize on an investment or may cause a Fund to hold a security that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

 

 

 


12

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments April 30, 2009

BlackRock Apex Municipal Fund, Inc. (APX)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 0.6%

 

 

 

 

 

 

 

Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 5%, 1/01/10

 

$

475

 

$

435,618

 

Tuscaloosa, Alabama, Special Care Facilities Financing
Authority, Residential Care Facility Revenue Bonds
(Capstone Village, Inc. Project), Series A, 5.875%,
8/01/36 (a)(b)

 

 

1,255

 

 

535,119

 

 

 

 

 

 




 

 

 

 

 

 

970,737

 









Alaska — 1.1%

 

 

 

 

 

 

 

Alaska Industrial Development and Expert Authority
Revenue Bonds (Williams Lynxs Alaska Cargoport),
AMT, 8%, 5/01/23

 

 

2,000

 

 

1,650,040

 









Arizona — 3.9%

 

 

 

 

 

 

 

Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.625%, 7/01/20

 

 

1,100

 

 

826,221

 

Maricopa County, Arizona, IDA, M/F Housing Revenue
Bonds (Sun King Apartments Project), Series A:

 

 

 

 

 

 

 

6%, 11/01/10

 

 

15

 

 

14,750

 

6.75%, 5/01/31

 

 

1,020

 

 

717,335

 

Phoenix, Arizona, IDA, Airport Facility, Revenue Refunding
Bonds (America West Airlines Inc. Project), AMT,
6.30%, 4/01/23

 

 

2,950

 

 

1,814,221

 

Pima County, Arizona, IDA, Education Revenue Bonds
(Arizona Charter Schools Project), Series E,
7.25%, 7/01/31

 

 

960

 

 

714,403

 

Salt Verde Financial Corp., Arizona, Senior Gas
Revenue Bonds:

 

 

 

 

 

 

 

5%, 12/01/32

 

 

1,950

 

 

1,354,061

 

5%, 12/01/37

 

 

230

 

 

154,960

 

Yavapai County, Arizona, IDA, Hospital Facility Revenue
Bonds (Yavapai Regional Medical Center), Series A,
6%, 8/01/33

 

 

500

 

 

394,465

 

 

 

 

 

 




 

 

 

 

 

 

5,990,416

 









California — 2.6%

 

 

 

 

 

 

 

Fontana, California, Special Tax, Refunding (Community
Facilities District Number 22 — Sierra), 6%, 9/01/34

 

 

1,000

 

 

748,840

 

San Jose, California, Airport Revenue Refunding Bonds,
AMT, Series A, 5.50%, 3/01/32 (c)

 

 

2,220

 

 

2,028,791

 

Southern California Public Power Authority, Natural Gas
Project Number 1 Revenue Bonds, Series A,
5%, 11/01/29

 

 

1,435

 

 

1,147,526

 

 

 

 

 

 




 

 

 

 

 

 

3,925,157

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Colorado — 4.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Revenue Refunding
Bonds (Christian Living Communities Project), Series A,
5.75%, 1/01/26

 

$

450

 

$

346,657

 

Elk Valley, Colorado, Public Improvement Revenue Bonds
(Public Improvement Fee), Series A, 7.30%, 9/01/22

 

 

2,800

 

 

2,457,308

 

North Range Metropolitan District Number 1, Colorado,
GO, 7.25%, 12/15/11 (d)

 

 

1,235

 

 

1,403,429

 

Plaza Metropolitan District Number 1, Colorado, Tax
Allocation Revenue Bonds (Public Improvement Fees):

 

 

 

 

 

 

 

8%, 12/01/25

 

 

2,000

 

 

1,696,020

 

8.125%, 12/01/25

 

 

500

 

 

384,250

 

 

 

 

 

 




 

 

 

 

 

 

6,287,664

 









Connecticut — 0.9%

 

 

 

 

 

 

 

Connecticut State Development Authority, Airport Facility
Revenue Bonds (Learjet Inc. Project), AMT,
7.95%, 4/01/26

 

 

490

 

 

433,106

 

Mashantucket Western Pequot Tribe, Connecticut, Revenue
Refunding Bonds, Sub-Series A, 5.50%, 9/01/36

 

 

615

 

 

292,746

 

Mohegan Tribe Indians Gaming Authority, Connecticut,
Public Improvement Revenue Refunding Bonds
(Priority Distribution), 5.25%, 1/01/33

 

 

1,500

 

 

712,530

 

 

 

 

 

 




 

 

 

 

 

 

1,438,382

 









Florida — 10.2%

 

 

 

 

 

 

 

Capital Region Community Development District, Florida,
Special Assessment Revenue Bonds, Series A,
7%, 5/01/39

 

 

645

 

 

455,086

 

Halifax Hospital Medical Center, Florida, Hospital
Revenue Refunding Bonds, Series A, 5%, 6/01/38

 

 

840

 

 

599,659

 

Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT:

 

 

 

 

 

 

 

Series A, 7.125%, 4/01/30

 

 

2,500

 

 

1,284,175

 

Series B, 7.125%, 4/01/30

 

 

1,060

 

 

544,490

 

Jacksonville, Florida, Economic Development
Commission, Health Care Facilities, Revenue
Refunding Bonds (Florida Proton Therapy Institute),
Series A, 6%, 9/01/17

 

 

915

 

 

784,127

 

Jacksonville, Florida, Economic Development
Commission, IDR (Gerdau Ameristeel US, Inc.), AMT,
5.30%, 5/01/37

 

 

900

 

 

459,603

 

Lakewood Ranch, Florida, Community Development
District Number 5, Special Assessment Revenue
Refunding Bonds, Series A, 6.70%, 5/01/11 (d)

 

 

725

 

 

796,702

 

Lee County, Florida, IDA, IDR (Lee Charter Foundation),
Series A, 5.375%, 6/15/37

 

 

1,810

 

 

1,024,351

 

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

 

 

 

 

 

 

 

6%, 5/01/24

 

 

1,430

 

 

1,019,762

 

6.25%, 5/01/37

 

 

1,350

 

 

862,839

 


 


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.

 

 

AMT

Alternative Minimum Tax (subject to)

CABS

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

EDR

Economic Development Revenue Bonds

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

IDB

Industrial Development Bonds

IDR

Industrial Development Revenue Bonds

M/F

Multi-Family

PCR

Pollution Control Revenue Bonds

S/F

Single-Family

VRDN

Variable Rate Demand Notes


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 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)

 

 

 

 

 

 

 

Orlando, Florida, Urban Community Development District,
Capital Improvement Special Assessment Bonds,
Series A, 6.95%, 5/01/11 (d)

 

$

1,405

 

$

1,551,120

 

Santa Rosa Bay Bridge Authority, Florida, Revenue
Bonds, 6.25%, 7/01/28

 

 

2,140

 

 

1,223,973

 

Sarasota County, Florida, Health Facilities Authority,
Retirement Facility Revenue Refunding Bonds
(Village on the Isle Project):

 

 

 

 

 

 

 

5.50%, 1/01/27

 

 

590

 

 

406,528

 

5.50%, 1/01/32

 

 

550

 

 

353,447

 

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

 

 

1,645

 

 

1,021,068

 

Tampa Palms, Florida, Open Space and Transportation
Community Development District Revenue Bonds,
Capital Improvement (Richmond Place Project),
7.50%, 5/01/18

 

 

2,075

 

 

1,954,920

 

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

 

 

1,850

 

 

1,244,144

 

 

 

 

 

 




 

 

 

 

 

 

15,585,994

 









Georgia — 2.0%

 

 

 

 

 

 

 

Atlanta, Georgia, Tax Allocation Bonds (Princeton Lakes
Project), 5.50%, 1/01/31

 

 

395

 

 

263,311

 

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

 

 

1,640

 

 

1,386,292

 

Main Street Natural Gas, Inc., Georgia, Gas Project
Revenue Bonds, Series A, 6.375%, 7/15/38 (a)(b)

 

 

650

 

 

242,131

 

Rockdale County, Georgia, Development Authority
Revenue Bonds (Visy Paper Project), AMT,
Series A, 6.125%, 1/01/34

 

 

1,680

 

 

1,115,335

 

 

 

 

 

 




 

 

 

 

 

 

3,007,069

 









Illinois — 5.1%

 

 

 

 

 

 

 

Chicago, Illinois, O’Hare International Airport, Special
Facility Revenue Refunding Bonds (American
Airlines Inc. Project), 5.50%, 12/01/30

 

 

2,860

 

 

1,086,800

 

Illinois State Finance Authority Revenue Bonds:

 

 

 

 

 

 

 

(Clare At Water Tower Project), Series A,
6.125%, 5/15/38

 

 

2,050

 

 

1,019,998

 

(Landing At Plymouth Place Project), Series A,
6%, 5/15/37

 

 

430

 

 

273,243

 

(Monarch Landing, Inc. Project), Series A,
7%, 12/01/37

 

 

575

 

 

348,341

 

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

 

 

490

 

 

367,206

 

(Rush University Medical Center Obligated Group
Project), Series A, 7.25%, 11/01/30

 

 

2,000

 

 

2,105,100

 

Lincolnshire, Illinois, Special Service Area Number 1,
Special Tax Bonds (Sedgebrook Project),
6.25%, 3/01/34

 

 

755

 

 

481,109

 

Lombard, Illinois, Public Facilities Corporation, First Tier
Revenue Bonds (Conference Center and Hotel),
Series A-1, 7.125%, 1/01/36

 

 

2,400

 

 

1,597,728

 

Village of Wheeling, Illinois, Revenue Bonds (North
Milwaukee/Lake-Cook Tax Increment Financing
Redevelopment Project), 6%, 1/01/25

 

 

760

 

 

583,460

 

 

 

 

 

 




 

 

 

 

 

 

7,862,985

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Indiana — 1.7%

 

 

 

 

 

 

 

Indiana Health and Educational Facilities Financing
Authority, Hospital Revenue Bonds (Community
Foundation of Northwest Indiana), 5.50%, 3/01/37

 

$

1,770

 

$

1,372,069

 

Vanderburgh County, Indiana, Redevelopment
Commission, Redevelopment District Tax
Allocation Bonds, 5.25%, 2/01/31

 

 

820

 

 

656,927

 

Vigo County, Indiana, Hospital Authority Revenue Bonds
(Union Hospital, Inc.):

 

 

 

 

 

 

 

5.70%, 9/01/37

 

 

440

 

 

289,379

 

5.75%, 9/01/42

 

 

545

 

 

353,449

 

 

 

 

 

 




 

 

 

 

 

 

2,671,824

 









Louisiana — 2.7%

 

 

 

 

 

 

 

Louisiana Local Government Environmental Facilities
and Community Development Authority Revenue
Bonds (Westlake Chemical Corporation),
6.75%, 11/01/32

 

 

2,000

 

 

1,392,100

 

Louisiana Public Facilities Authority, Hospital Revenue
Bonds (Franciscan Missionaries of Our Lady Health
System, Inc.), Series A, 5.25%, 8/15/36

 

 

1,300

 

 

1,106,651

 

Saint John Baptist Parish, Louisiana, Revenue Bonds
(Marathon Oil Corporation), Series A, 5.125%, 6/01/37

 

 

2,050

 

 

1,568,045

 

 

 

 

 

 




 

 

 

 

 

 

4,066,796

 









Maryland — 1.0%

 

 

 

 

 

 

 

Baltimore, Maryland, Convention Center Hotel Revenue
Bonds, Sub-Series B, 5.875%, 9/01/39

 

 

385

 

 

230,992

 

Maryland State Energy Financing Administration,
Limited Obligation Revenue Bonds (Cogeneration — AES
Warrior Run), AMT, 7.40%, 9/01/19

 

 

1,500

 

 

1,138,815

 

Maryland State Health and Higher Educational Facilities
Authority Revenue Bonds (Washington Christian
Academy), 5.50%, 7/01/38

 

 

410

 

 

209,957

 

 

 

 

 

 




 

 

 

 

 

 

1,579,764

 









Massachusetts — 2.8%

 

 

 

 

 

 

 

Massachusetts State Development Finance Agency,
First Mortgage Revenue Bonds (Overlook
Communities Inc.), Series A, 6.25%, 7/01/34

 

 

1,845

 

 

1,231,556

 

Massachusetts State Development Finance Agency,
Revenue Refunding Bonds (Eastern Nazarene College),
5.625%, 4/01/19

 

 

1,245

 

 

1,030,860

 

Massachusetts State Health and Educational Facilities
Authority Revenue Bonds (Jordan Hospital), Series E,
6.75%, 10/01/33

 

 

850

 

 

616,981

 

Massachusetts State Health and Educational Facilities
Authority, Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Bay Cove Human Services Issue), Series A,
5.90%, 4/01/28

 

 

820

 

 

578,535

 

(Milton Hospital), Series, 5.50%, 7/01/16

 

 

500

 

 

369,775

 

Massachusetts State Industrial Finance Agency
Revenue Bonds, Sewer Facility (Resource Control
Composting), AMT, 9.25%, 6/01/10

 

 

500

 

 

501,250

 

 

 

 

 

 




 

 

 

 

 

 

4,328,957

 









Michigan — 2.6%

 

 

 

 

 

 

 

Advanced Technology Academy, Michigan, Revenue
Bonds, 6%, 11/01/37

 

 

625

 

 

438,369

 

Monroe County, Michigan, Hospital Financing Authority,
Hospital Revenue Refunding Bonds (Mercy Memorial
Hospital Corporation), 5.50%, 6/01/35

 

 

1,260

 

 

734,366

 

Royal Oak, Michigan, Hospital Finance Authority, Hospital
Revenue Refunding Bonds (William Beaumont
Hospital), 8.25%, 9/01/39

 

 

2,575

 

 

2,865,357

 

 

 

 

 

 




 

 

 

 

 

 

4,038,092

 










 

 

 

See Notes to Financial Statements.

 


14

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments (continued)

BlackRock Apex Municipal Fund, Inc. (APX)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Missouri — 0.5%

 

 

 

 

 

 

 

Kansas City, Missouri, IDA, First Mortgage Health
Facilities Revenue Bonds (Bishop Spencer Place),
Series A, 6.50%, 1/01/35

 

$

1,000

 

$

694,750

 









Nevada — 0.7%

 

 

 

 

 

 

 

Clark County, Nevada, IDR (Nevada Power Company
Project), AMT, Series A, 5.60%, 10/01/30

 

 

955

 

 

729,782

 

Clark County, Nevada, Improvement District Number 142,
Special Assessment Bonds, 6.375%, 8/01/23

 

 

400

 

 

291,852

 

 

 

 

 

 




 

 

 

 

 

 

1,021,634

 









New Hampshire — 0.4%

 

 

 

 

 

 

 

New Hampshire Health and Education Facilities Authority,
Hospital Revenue Bonds (Catholic Medical Center),
5%, 7/01/36

 

 

835

 

 

574,756

 









New Jersey — 10.4%

 

 

 

 

 

 

 

Camden County, New Jersey, Pollution Control Financing
Authority, Solid Waste Resource Recovery, Revenue
Refunding Bonds, AMT, Series A, 7.50%, 12/01/10

 

 

6,000

 

 

5,973,000

 

New Jersey EDA, Cigarette Tax Revenue Bonds,
5.50%, 6/15/24

 

 

2,170

 

 

1,690,734

 

New Jersey EDA, IDR, Refunding (Newark Airport
Marriott Hotel), 7%, 10/01/14

 

 

1,500

 

 

1,350,240

 

New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT:

 

 

 

 

 

 

 

6.625%, 9/15/12

 

 

3,050

 

 

2,661,155

 

6.25%, 9/15/29

 

 

1,000

 

 

639,500

 

New Jersey Health Care Facilities Financing Authority
Revenue Bonds (Pascack Valley Hospital Association),
6.625%, 7/01/36 (a)(b)

 

 

1,870

 

 

48,433

 

New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds (Saint Joseph’s Healthcare
System), 6.625%, 7/01/38

 

 

1,680

 

 

1,302,437

 

New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds, CABS, Series C,
5.05%, 12/15/35 (c)(e)

 

 

2,760

 

 

529,258

 

New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds (University of Medicine
and Dentistry), Series B:

 

 

 

 

 

 

 

7.125%, 12/01/23

 

 

670

 

 

696,056

 

7.50%, 12/01/32

 

 

1,065

 

 

1,085,246

 

 

 

 

 

 




 

 

 

 

 

 

15,976,059

 









New Mexico — 3.3%

 

 

 

 

 

 

 

Farmington, New Mexico, PCR, Refunding (Tucson
Electric Power Company — San Juan Project), Series A,
6.95%, 10/01/20

 

 

5,000

 

 

5,001,050

 









New York — 4.9%

 

 

 

 

 

 

 

Dutchess County, New York, IDA, Civic Facility Revenue
Bonds (Saint Francis Hospital), Series B,
7.50%, 3/01/29

 

 

1,000

 

 

896,860

 

Metropolitan Transportation Authority, New York, Revenue
Bonds, Series C, 6.50%, 11/15/28

 

 

2,000

 

 

2,207,020

 

New York City, New York, City IDA, Civic Facility
Revenue Bonds:

 

 

 

 

 

 

 

Series C, 6.80%, 6/01/28

 

 

350

 

 

343,381

 

(Special Needs Facility Pooled Program),
Series C-1, 6.50%, 7/01/24

 

 

830

 

 

652,778

 

New York City, New York, City IDA, Special Facility
Revenue Bonds:

 

 

 

 

 

 

 

(American Airlines, Inc. — JFK International Airport),
AMT, 8%, 8/01/28

 

 

720

 

 

560,160

 

(British Airways Plc Project), AMT, 7.625%, 12/01/32

 

 

1,730

 

 

1,163,494

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 

New York Liberty Development Corporation Revenue
Bonds (National Sports Museum Project), Series A,
6.125%, 2/15/19 (a)(b)

 

$

630

 

$

630

 

New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds (New York
University Hospital Center), Series A, 5%, 7/01/20

 

 

2,040

 

 

1,734,286

 

 

 

 

 

 




 

 

 

 

 

 

7,558,609

 









North Carolina — 1.7%

 

 

 

 

 

 

 

North Carolina Medical Care Commission, Health
Care Facilities, First Mortgage Revenue Refunding
Bonds (Deerfield Episcopal Project), Series A,
6.125%, 11/01/38

 

 

3,230

 

 

2,596,500

 









Ohio — 3.2%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.125%, 6/01/24

 

 

4,025

 

 

3,159,786

 

6.50%, 6/01/47

 

 

2,685

 

 

1,658,524

 

 

 

 

 

 




 

 

 

 

 

 

4,818,310

 









Pennsylvania — 7.9%

 

 

 

 

 

 

 

Bucks County, Pennsylvania, IDA, Retirement Community
Revenue Bonds (Ann’s Choice Inc.), Series A,
6.125%, 1/01/25

 

 

1,160

 

 

846,208

 

Chester County, Pennsylvania, Health and Education
Facilities Authority, Senior Living Revenue
Refunding Bonds (Jenners Pond Inc. Project),
7.625%, 7/01/12 (d)

 

 

1,750

 

 

2,107,490

 

Harrisburg, Pennsylvania, Authority, University Revenue
Bonds (Harrisburg University of Science), Series B,
6%, 9/01/36

 

 

600

 

 

445,566

 

Lancaster County, Pennsylvania, Hospital Authority
Revenue Bonds (Brethren Village Project), Series A:

 

 

 

 

 

 

 

6.25%, 7/01/26

 

 

475

 

 

402,748

 

6.50%, 7/01/40

 

 

410

 

 

323,966

 

Montgomery County, Pennsylvania, IDA, Revenue Bonds
(Whitemarsh Continuing Care Project), 6.25%, 2/01/35

 

 

1,700

 

 

1,039,924

 

Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds
(Reliant Energy), AMT, Series B, 6.75%, 12/01/36

 

 

1,940

 

 

1,784,742

 

Philadelphia, Pennsylvania, Authority for IDR:

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,333,024

 

Commercial Development, 7.75%, 12/01/17

 

 

4,460

 

 

3,805,540

 

 

 

 

 

 




 

 

 

 

 

 

12,089,208

 









Rhode Island — 0.8%

 

 

 

 

 

 

 

Central Falls, Rhode Island, Detention Facility
Corporation, Revenue Refunding Bonds,
7.25%, 7/15/35

 

 

1,750

 

 

1,198,785

 









South Carolina — 2.8%

 

 

 

 

 

 

 

Connector 2000 Association, Inc., South Carolina,
Toll Road and Capital Appreciation Revenue Bonds,
Senior-Series B, 8.755%, 1/01/14 (e)

 

 

1,075

 

 

587,681

 

South Carolina Housing Finance and Development
Authority, Mortgage Revenue Refunding Bonds, AMT,
Series A-2, 5.15%, 7/01/37 (c)

 

 

4,000

 

 

3,661,600

 

 

 

 

 

 




 

 

 

 

 

 

4,249,281

 









Tennessee — 1.0%

 

 

 

 

 

 

 

Shelby County, Tennessee, Health, Educational and
Housing Facilities Board Revenue Bonds
(Germantown Village):

 

 

 

 

 

 

 

6.25%, 12/01/34

 

 

245

 

 

160,032

 

Series A, 7.25%, 12/01/34

 

 

1,800

 

 

1,341,018

 

 

 

 

 

 




 

 

 

 

 

 

1,501,050

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 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 — 5.7%

 

 

 

 

 

 

 

Brazos River Authority, Texas, PCR, Refunding (TXU
Energy Company LLC Project), AMT:

 

 

 

 

 

 

 

Series A, 7.70%, 4/01/33

 

$

2,530

 

$

1,037,730

 

Series C, 5.75%, 5/01/36 (m)

 

 

1,475

 

 

870,250

 

Danbury, Texas, Higher Education Authority Revenue
Bonds (A.W. Brown-Fellowship Charter School),
Series A, 5.125%, 8/15/36 (f)

 

 

1,000

 

 

698,570

 

Harris County, Texas, Health Facilities Development
Corporation, Hospital Revenue Refunding Bonds
(Memorial Hermann Healthcare System), Series B,
7.25%, 12/01/35

 

 

1,110

 

 

1,176,744

 

Houston, Texas, Airport System, Special Facilities
Revenue Bonds (Continental Airlines), AMT,
Series E, 6.75%, 7/01/21

 

 

1,865

 

 

1,379,988

 

North Texas Tollway Authority, System Revenue Refunding
Bonds, Second Tier, Series F, 6.125%, 1/01/31

 

 

2,250

 

 

2,255,243

 

Texas State Public Financing Authority, Charter School
Financing Corporation, Revenue Refunding Bonds
(KIPP, Inc.), Series A, 5%, 2/15/28 (f)

 

 

2,250

 

 

1,377,045

 

 

 

 

 

 




 

 

 

 

 

 

8,795,570

 









Utah — 1.5%

 

 

 

 

 

 

 

Carbon County, Utah, Solid Waste Disposal, Revenue
Refunding Bonds (Laidlaw Environmental), AMT,
Series A, 7.45%, 7/01/17

 

 

2,240

 

 

2,241,232

 









Virginia — 1.9%

 

 

 

 

 

 

 

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

 

 

2,385

 

 

1,716,222

 

King George County, Virginia, IDA, Solid Waste Disposal
Facility Revenue Bonds (Waste Management, Inc.),
AMT, Series A, 6%, 6/01/23

 

 

500

 

 

500,000

 

Tobacco Settlement Financing Corporation of Virginia,
Revenue Refunding Bonds, Senior Series B-1,
5%, 6/01/47

 

 

1,250

 

 

667,775

 

 

 

 

 

 




 

 

 

 

 

 

2,883,997

 









West Virginia — 0.5%

 

 

 

 

 

 

 

Princeton, West Virginia, Hospital Revenue Refunding
Bonds (Community Hospital Association Inc. Project),
6.20%, 5/01/13

 

 

795

 

 

740,105

 









Wisconsin — 0.7%

 

 

 

 

 

 

 

Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (New Castle Place Project),
Series A, 7%, 12/01/31

 

 

1,320

 

 

995,676

 









Wyoming — 1.8%

 

 

 

 

 

 

 

Sweetwater County, Wyoming, Solid Waste Disposal,
Revenue Refunding Bonds (FMC Corporation Project),
AMT, 5.60%, 12/01/35

 

 

2,500

 

 

1,849,900

 

Wyoming Municipal Power Agency, Power Supply
Revenue Bonds, Series A, 5.375%, 1/01/42

 

 

1,000

 

 

957,690

 

 

 

 

 

 




 

 

 

 

 

 

2,807,590

 









Guam — 0.8%

 

 

 

 

 

 

 

Guam Government Waterworks Authority, Water and
Wastewater System, Revenue Refunding Bonds,
5.875%, 7/01/35

 

 

1,600

 

 

1,268,000

 









U.S. Virgin Islands — 1.1%

 

 

 

 

 

 

 

Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT,
6.50%, 7/01/21

 

 

2,100

 

 

1,647,009

 









Total Municipal Bonds — 92.9%

 

 

 

 

 

142,063,048

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

Par
(000)

 

Value

 









District of Columbia — 1.9%

 

 

 

 

 

 

 

District of Columbia, Water and Sewer Authority, Public
Utility Revenue Refunding Bonds, 6%, 10/01/35

 

$

2,730

 

$

2,946,171

 









Florida — 3.7%

 

 

 

 

 

 

 

Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, Series A, 5.25%, 10/01/33 (h)

 

 

6,130

 

 

5,617,593

 









Virginia — 3.7%

 

 

 

 

 

 

 

Virginia State, HDA, Commonwealth Mortgage Revenue
Bonds, Series H, Sub-Series H-1, 5.375%, 7/01/36 (i)

 

 

5,710

 

 

5,725,189

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 9.3%

 

 

 

 

 

14,288,953

 









Total Long-Term Investments
(Cost — $189,876,429) — 102.2%

 

 

 

 

 

156,352,001

 










 

 

 

 

 

 

 

 


Short-Term Securities

 

 

 

 

 

 

 









Mississippi — 0.7%

 

 

 

 

 

 

 

Mississippi Business Finance Corporation, Solid Waste
Disposal Revenue Bonds (Waste Management, Inc.
Project), VRDN, AMT, 6.875%, 3/01/10 (j)

 

 

1,000

 

 

1,004,980

 










 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 









Money Market Fund — 0.0%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.72% (k)(l)

 

 

100,006

 

 

100,006

 









Total Short-Term Securities
(Cost — $1,100,006) — 0.7%

 

 

 

 

 

1,104,986

 









Total Investments
(Cost — $190,976,435*) — 102.9%

 

 

 

 

 

157,456,987

 

Other Assets Less Liabilities — 1.8%

 

 

 

 

 

2,797,170

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (4.7)%

 

 

 

 

 

(7,293,611

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

152,960,546

 

 

 

 

 

 





 

 


*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

183,184,165

 

 

 




Gross unrealized appreciation

 

$

2,951,969

 

Gross unrealized depreciation

 

 

(35,964,593

)

 

 




Net unrealized depreciation

 

$

(33,012,624

)

 

 





 

 

(a)

Non-income producing security.

 

 

(b)

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

 

 

(c)

AMBAC Insured.

 

 

(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)

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

 

 

(f)

ACA Insured.

 

 

(g)

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.

 

 

(h)

Assured Guaranty Insured.

 

 

(i)

NPFGC Insured.


 

 

 

See Notes to Financial Statements.

 


16

ANNUAL REPORT

APRIL 30, 2009



 

 


 

Schedule of Investments (concluded)

BlackRock Apex Municipal Fund, Inc. (APX)


 

 

(j)

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 recovered through demand.

 

 

(k)

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

 

$

(4,405,068

)

$

31,470

 










 

 

 

(l)

Represents the current yield as of report date.

 

 

 

(m)

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

 

 

 

Effective July 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

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 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 circumstance, 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 April 30, 2009 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1

 

$

100,006

 

Level 2

 

 

157,356,981

 

Level 3

 

 

 






Total

 

$

157,456,987

 

 

 





 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

17



 

 



 

 

Schedule of Investments April 30, 2009

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 0.6%

 

 

 

 

 

 

 

Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 5%, 1/01/10

 

$

685

 

$

628,207

 

Tuscaloosa, Alabama, Special Care Facilities Financing
Authority, Residential Care Facility Revenue Bonds
(Capstone Village, Inc. Project), Series A, 5.875%,
8/01/36 (a)(b)

 

 

1,820

 

 

776,030

 

 

 

 

 

 




 

 

 

 

 

 

1,404,237

 









Alaska — 0.3%

 

 

 

 

 

 

 

Alaska Industrial Development and Export Authority
Revenue Bonds (Williams Lynxs Alaska Cargoport),
AMT, 7.80%, 5/01/14

 

 

590

 

 

555,225

 









Arizona — 7.5%

 

 

 

 

 

 

 

Coconino County, Arizona, Pollution Control
Corporation Revenue Refunding Bonds
(Tucson Electric Power — Navajo):

 

 

 

 

 

 

 

AMT, Series A, 7.125%, 10/01/32

 

 

3,000

 

 

2,780,340

 

Series B, 7%, 10/01/32

 

 

2,500

 

 

2,343,275

 

Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.625%, 7/01/20

 

 

1,625

 

 

1,220,554

 

Maricopa County, Arizona, IDA, M/F Housing Revenue
Bonds (Sun King Apartments Project), Series A,
6.75%, 5/01/31

 

 

1,615

 

 

1,135,781

 

Phoenix, Arizona, IDA, Airport Facility, Revenue
Refunding Bonds (America West Airlines Inc.
Project), AMT, 6.30%, 4/01/23

 

 

4,800

 

 

2,951,952

 

Pima County, Arizona, IDA, Education Revenue Bonds
(Arizona Charter Schools Project), Series E,
7.25%, 7/01/31

 

 

1,375

 

 

1,023,234

 

Pima County, Arizona, IDA, Education Revenue
Refunding Bonds (Arizona Charter Schools Project II):

 

 

 

 

 

 

 

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

 

 

415

 

 

463,787

 

Series A, 6.75%, 7/01/31

 

 

675

 

 

474,167

 

Series O, 5.25%, 7/01/31

 

 

500

 

 

284,580

 

Salt Verde Financial Corporation, Arizona, Senior Gas
Revenue Bonds:

 

 

 

 

 

 

 

5%, 12/01/32

 

 

2,840

 

 

1,972,068

 

5%, 12/01/37

 

 

1,850

 

 

1,246,419

 

Show Low, Arizona, Improvement District Number 5,
Special Assessment Bonds, 6.375%, 1/01/15

 

 

865

 

 

814,155

 

 

 

 

 

 




 

 

 

 

 

 

16,710,312

 









California — 3.8%

 

 

 

 

 

 

 

California State, Various Purpose, GO, 5.25%, 11/01/25

 

 

1,900

 

 

1,906,194

 

Fontana, California, Special Tax, Refunding (Community
Facilities District Number 22 — Sierra), 6%, 9/01/34

 

 

1,320

 

 

988,469

 

San Jose, California, Airport Revenue Refunding Bonds,
AMT, Series A, 5.50%, 3/01/32 (d)

 

 

4,290

 

 

3,920,502

 

Southern California Public Power Authority, Natural Gas
Project Number 1 Revenue Bonds, Series A,
5%, 11/01/29

 

 

2,085

 

 

1,667,312

 

 

 

 

 

 




 

 

 

 

 

 

8,482,477

 









Colorado — 4.7%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Revenue Refunding
Bonds (Christian Living Communities Project), Series A,
5.75%, 1/01/26

 

 

650

 

 

500,728

 

Denver, Colorado, City and County Airport Revenue
Bonds, AMT, Series D, 7.75%, 11/15/13 (d)

 

 

1,540

 

 

1,657,302

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Colorado (concluded)

 

 

 

 

 

 

 

Elk Valley, Colorado, Public Improvement Revenue Bonds
(Public Improvement Fee):

 

 

 

 

 

 

 

Series A, 7.10%, 9/01/14

 

$

1,410

 

$

1,389,851

 

Series A, 7.30%, 9/01/22

 

 

2,095

 

 

1,838,593

 

Series B, 7.45%, 9/01/31

 

 

260

 

 

208,832

 

North Range Metropolitan District Number 1, Colorado,
GO, 7.25%, 12/15/11 (c)

 

 

1,760

 

 

2,000,029

 

Plaza Metropolitan District Number 1, Colorado, Tax
Allocation Revenue Bonds (Public Improvement Fees):

 

 

 

 

 

 

 

8%, 12/01/25

 

 

2,850

 

 

2,416,829

 

8.125%, 12/01/25

 

 

525

 

 

403,463

 

 

 

 

 

 




 

 

 

 

 

 

10,415,627

 









Connecticut — 1.8%

 

 

 

 

 

 

 

Connecticut State Development Authority, Airport
Facility Revenue Bonds (Learjet Inc. Project), AMT,
7.95%, 4/01/26

 

 

680

 

 

601,045

 

Connecticut State Development Authority, IDR (AFCO
Cargo BDL-LLC Project), AMT, 8%, 4/01/30

 

 

3,490

 

 

3,010,579

 

Mashantucket Western Pequot Tribe, Connecticut,
Revenue Refunding Bonds, Sub-Series A,
5.50%, 9/01/36

 

 

885

 

 

421,269

 

 

 

 

 

 




 

 

 

 

 

 

4,032,893

 









Florida — 10.0%

 

 

 

 

 

 

 

Capital Region Community Development District,
Florida, Special Assessment Revenue Bonds, Series A,
7%, 5/01/39

 

 

945

 

 

666,754

 

Greater Orlando Aviation Authority, Florida, Airport
Facilities Revenue Bonds (JetBlue Airways Corp.),
AMT, 6.375%, 11/15/26

 

 

1,180

 

 

743,553

 

Halifax Hospital Medical Center, Florida, Hospital
Revenue Refunding Bonds, Series A, 5%, 6/01/38

 

 

1,160

 

 

828,101

 

Harbor Bay, Florida, Community Development District,
Capital Improvement Special Assessment Revenue
Bonds, Series A, 7%, 5/01/33

 

 

455

 

 

419,451

 

Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT:

 

 

 

 

 

 

 

Series A, 7.125%, 4/01/30

 

 

2,000

 

 

1,027,340

 

Series B, 7.125%, 4/01/30

 

 

1,540

 

 

791,052

 

Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (Tampa General Hospital Project),
5%, 10/01/36

 

 

4,170

 

 

3,078,794

 

Jacksonville, Florida, Economic Development
Commission, Health Care Facilities, Revenue
Refunding Bonds (Florida Proton Therapy Institute),
Series A, 6%, 9/01/17

 

 

920

 

 

788,412

 

Jacksonville, Florida, Economic Development
Commission, IDR (Gerdau Ameristeel US, Inc.),
AMT, 5.30%, 5/01/37

 

 

1,300

 

 

663,871

 

Lee County, Florida, IDA, IDR (Lee Charter Foundation),
Series A, 5.375%, 6/15/37

 

 

2,620

 

 

1,482,763

 

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

 

 

3,255

 

 

2,080,401

 

Orlando, Florida, Urban Community Development District,
Capital Improvement Special Assessment Bonds,
Series A, 6.95%, 5/01/11 (c)

 

 

2,245

 

 

2,478,480

 

Santa Rosa Bay Bridge Authority, Florida, Revenue
Bonds, 6.25%, 7/01/28

 

 

3,040

 

 

1,738,728

 

Sarasota County, Florida, Health Facilities Authority,
Retirement Facility Revenue Refunding Bonds
(Village on the Isle Project):

 

 

 

 

 

 

 

5.50%, 1/01/27

 

 

860

 

 

592,566

 

5.50%, 1/01/32

 

 

795

 

 

510,891

 


 

 

 

See Notes to Financial Statements.

 




18

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Florida (concluded)

 

 

 

 

 

 

 

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

 

$

2,405

 

$

1,492,808

 

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

 

 

2,680

 

 

1,802,327

 

Waterchase, Florida, Community Development District,
Capital Improvement Revenue Bonds, Series A, 6.70%,
5/01/11 (c)

 

 

870

 

 

956,156

 

 

 

 

 

 




 

 

 

 

 

 

22,142,448

 









Georgia — 2.0%

 

 

 

 

 

 

 

Atlanta, Georgia, Tax Allocation Bonds (Princeton Lakes
Project), 5.50%, 1/01/31

 

 

640

 

 

426,630

 

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

 

 

2,375

 

 

2,007,588

 

Main Street Natural Gas, Inc., Georgia, Gas Project
Revenue Bonds, Series A, 6.375%, 7/15/38 (a)(b)

 

 

940

 

 

350,159

 

Rockdale County, Georgia, Development Authority
Revenue Bonds (Visy Paper Project), AMT, Series A,
6.125%, 1/01/34

 

 

2,435

 

 

1,616,572

 

 

 

 

 

 




 

 

 

 

 

 

4,400,949

 









Guam — 0.8%

 

 

 

 

 

 

 

Guam Government Waterworks Authority, Water and
Wastewater System, Revenue Refunding Bonds,
5.875%, 7/01/35

 

 

2,305

 

 

1,826,712

 









Illinois — 3.9%

 

 

 

 

 

 

 

Chicago, Illinois, O’Hare International Airport, Special
Facility Revenue Refunding Bonds (American
Airlines Inc. Project), 5.50%, 12/01/30

 

 

4,140

 

 

1,573,200

 

Illinois State Finance Authority Revenue Bonds:

 

 

 

 

 

 

 

(Clare At Water Tower Project), Series A,
6.125%, 5/15/38

 

 

2,950

 

 

1,467,802

 

(Landing At Plymouth Place Project), Series A,
6%, 5/15/37

 

 

600

 

 

381,270

 

(Monarch Landing, Inc. Project), Series A,
7%, 12/01/37

 

 

820

 

 

496,764

 

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

 

 

685

 

 

513,339

 

(Rush University Medical Center Obligated Group
Project), Series B, 7.25%, 11/01/30

 

 

1,170

 

 

1,231,483

 

Lincolnshire, Illinois, Special Service Area Number 1,
Special Tax Bonds (Sedgebrook Project),
6.25%, 3/01/34

 

 

1,070

 

 

681,836

 

Lombard, Illinois, Public Facilities Corporation, First Tier
Revenue Bonds (Conference Center and Hotel),
Series A-1, 7.125%, 1/01/36

 

 

2,600

 

 

1,730,872

 

Village of Wheeling, Illinois, Revenue Bonds (North
Milwaukee/Lake-Cook Tax Increment Financing
Redevelopment Project), 6%, 1/01/25

 

 

825

 

 

633,361

 

 

 

 

 

 




 

 

 

 

 

 

8,709,927

 









Indiana — 0.8%

 

 

 

 

 

 

 

Vanderburgh County, Indiana, Redevelopment
Commission, Redevelopment District Tax Allocation
Bonds, 5.25%, 2/01/31

 

 

1,200

 

 

961,356

 

Vigo County, Indiana, Hospital Authority Revenue Bonds
(Union Hospital, Inc.):

 

 

 

 

 

 

 

5.70%, 9/01/37

 

 

615

 

 

404,473

 

5.75%, 9/01/42

 

 

765

 

 

496,125

 

 

 

 

 

 




 

 

 

 

 

 

1,861,954

 









Iowa — 1.1%

 

 

 

 

 

 

 

Iowa Finance Authority, Health Care Facilities, Revenue
Refunding Bonds (Care Initiatives Project),
9.25%, 7/01/11 (c)

 

 

2,165

 

 

2,544,914

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Louisiana — 2.7%

 

 

 

 

 

 

 

Louisiana Local Government Environmental Facilities
and Community Development Authority Revenue
Bonds (Westlake Chemical Corporation),
6.75%, 11/01/32

 

$

3,000

 

$

2,088,150

 

Louisiana Public Facilities Authority, Hospital Revenue
Bonds (Franciscan Missionaries of Our Lady Health
System, Inc.), Series A, 5.25%, 8/15/36

 

 

1,870

 

 

1,591,875

 

Saint John Baptist Parish, Louisiana, Revenue
Bonds (Marathon Oil Corporation), Series A,
5.125%, 6/01/37

 

 

2,950

 

 

2,256,455

 

 

 

 

 

 




 

 

 

 

 

 

5,936,480

 









Maryland — 1.4%

 

 

 

 

 

 

 

Maryland State Economic Development Corporation
Revenue Refunding Bonds (Baltimore Association for
Retarded Citizens — Health and Mental Hygiene
Program), Series A, 7.75%, 3/01/25

 

 

1,765

 

 

1,646,286

 

Maryland State Energy Financing Administration,
Limited Obligation Revenue Bonds (Cogeneration — AES
Warrior Run), AMT, 7.40%, 9/01/19

 

 

1,500

 

 

1,138,815

 

Maryland State Health and Higher Educational Facilities
Authority Revenue Bonds (Washington Christian
Academy), 5.50%, 7/01/38

 

 

590

 

 

302,133

 

 

 

 

 

 




 

 

 

 

 

 

3,087,234

 









Massachusetts — 1.7%

 

 

 

 

 

 

 

Massachusetts State Health and Educational Facilities
Authority Revenue Bonds (Jordan Hospital), Series E,
6.75%, 10/01/33

 

 

1,150

 

 

834,739

 

Massachusetts State Health and Educational Facilities
Authority, Revenue Refunding Bonds (Bay Cove
Human Services Issue), Series A, 5.90%, 4/01/28

 

 

1,930

 

 

1,361,673

 

Massachusetts State Port Authority, Special Facilities
Revenue Bonds (Delta Air Lines Inc. Project), AMT,
Series A, 5.50%, 1/01/19 (d)

 

 

2,400

 

 

1,510,632

 

 

 

 

 

 




 

 

 

 

 

 

3,707,044

 









Michigan — 2.6%

 

 

 

 

 

 

 

Advanced Technology Academy, Michigan, Revenue
Bonds, 6%, 11/01/37

 

 

900

 

 

631,251

 

Monroe County, Michigan, Hospital Financing Authority,
Hospital Revenue Refunding Bonds (Mercy Memorial
Hospital Corporation), 5.50%, 6/01/35

 

 

1,740

 

 

1,014,124

 

Royal Oak, Michigan, Hospital Finance Authority,
Hospital Revenue Refunding Bonds (William
Beaumont Hospital), 8.25%, 9/01/39

 

 

3,735

 

 

4,156,159

 

 

 

 

 

 




 

 

 

 

 

 

5,801,534

 









Minnesota — 0.8%

 

 

 

 

 

 

 

Minneapolis, Minnesota, Health Care System Revenue
Refunding Bonds (Fairview Health Services), Series A,
6.75%, 11/15/32

 

 

1,785

 

 

1,857,453

 









Missouri — 0.3%

 

 

 

 

 

 

 

Kansas City, Missouri, IDA, First Mortgage Health
Facilities Revenue Bonds (Bishop Spencer Place),
Series A, 6.50%, 1/01/35

 

 

1,000

 

 

694,750

 









Nevada — 0.7%

 

 

 

 

 

 

 

Clark County, Nevada, IDR (Nevada Power Company
Project), AMT, Series A, 5.60%, 10/01/30

 

 

1,380

 

 

1,054,555

 

Clark County, Nevada, Improvement District Number 142,
Special Assessment Bonds, 6.375%, 8/01/23

 

 

630

 

 

459,667

 

 

 

 

 

 




 

 

 

 

 

 

1,514,222

 










 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2009

19



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New Hampshire — 0.4%

 

 

 

 

 

 

 

New Hampshire Health and Education Facilities
Authority, Hospital Revenue Bonds (Catholic Medical
Center), 5%, 7/01/36

 

$

1,165

 

$

801,904

 









New Jersey — 11.4%

 

 

 

 

 

 

 

Camden County, New Jersey, Pollution Control Financing
Authority, Solid Waste Resource Recovery, Revenue
Refunding Bonds, AMT:

 

 

 

 

 

 

 

Series A, 7.50%, 12/01/10

 

 

9,000

 

 

8,959,500

 

Series B, 7.50%, 12/01/09

 

 

125

 

 

125,255

 

New Jersey EDA, Cigarette Tax Revenue Bonds,
5.50%, 6/15/24

 

 

3,065

 

 

2,388,064

 

New Jersey EDA, IDR, Refunding (Newark Airport
Marriott Hotel), 7%, 10/01/14

 

 

2,500

 

 

2,250,400

 

New Jersey EDA, Retirement Community Revenue Bonds
(Cedar Crest Village Inc. Facility), Series A, 7.25%,
11/15/11 (c)

 

 

1,665

 

 

1,891,024

 

New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT:

 

 

 

 

 

 

 

6.25%, 9/15/19

 

 

2,000

 

 

1,460,020

 

6.25%, 9/15/29

 

 

3,330

 

 

2,129,535

 

9%, 6/01/33

 

 

1,250

 

 

1,057,987

 

New Jersey Health Care Facilities Financing Authority
Revenue Bonds (Pascack Valley Hospital Association),
6.625%, 7/01/36 (a)(b)

 

 

2,000

 

 

51,800

 

New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds (Saint Joseph’s Healthcare
System), 6.625%, 7/01/38

 

 

2,410

 

 

1,868,377

 

New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds (University of Medicine
and Dentistry), Series B, 7.50%, 12/01/32

 

 

2,510

 

 

2,557,715

 

New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds, CABS,
Series C, 5.05%, 12/15/35 (d)(e)

 

 

3,450

 

 

661,572

 

 

 

 

 

 




 

 

 

 

 

 

25,401,249

 









New Mexico — 1.1%

 

 

 

 

 

 

 

Farmington, New Mexico, PCR, Refunding (Tucson
Electric Power Company — San Juan Project), Series A,
6.95%, 10/01/20

 

 

2,500

 

 

2,500,525

 









New York — 6.1%

 

 

 

 

 

 

 

Dutchess County, New York, IDA, Civic Facility Revenue
Refunding Bonds (Saint Francis Hospital), Series A,
7.50%, 3/01/29

 

 

1,400

 

 

1,255,604

 

Metropolitan Transportation Authority, New York,
Revenue Bonds, Series C, 6.50%, 11/15/28

 

 

3,685

 

 

4,066,434

 

New York City, New York, City IDA, Civic Facility
Revenue Bonds:

 

 

 

 

 

 

 

Series C, 6.80%, 6/01/28

 

 

510

 

 

500,356

 

(Special Needs Facilities Pooled Program),
Series C-1, 6.625%, 7/01/29

 

 

1,515

 

 

1,166,611

 

New York City, New York, City IDA, Special Facility
Revenue Bonds (American Airlines, Inc. — JFK
   International Airport), AMT, 8%, 8/01/28

 

 

1,045

 

 

813,010

 

New York City, New York, City IDA, Special Facility
Revenue Bonds (British Airways Plc Project), AMT,
7.625%, 12/01/32

 

 

2,400

 

 

1,614,096

 

New York Liberty Development Corp. Revenue Bonds
(National Sports Museum Project), Series A, 6.125%,
2/15/19 (a)(b)

 

 

870

 

 

870

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (concluded)

 

 

 

 

 

 

 

New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Mount Sinai-NYU Medical Center Health System),
Series C, 5.50%, 7/01/26

 

$

1,470

 

$

1,400,836

 

(New York University Hospital Center), Series A,
5%, 7/01/20

 

 

2,960

 

 

2,516,414

 

Westchester County, New York, IDA, Continuing Care
Retirement, Mortgage Revenue Bonds (Kendal on
Hudson Project), Series A, 6.50%, 1/01/13 (c)

 

 

100

 

 

116,575

 

 

 

 

 

 




 

 

 

 

 

 

13,450,806

 









North Carolina — 1.5%

 

 

 

 

 

 

 

North Carolina Medical Care Commission, Health Care
Facilities, First Mortgage Revenue Refunding
Bonds (Deerfield Episcopal Project), Series A,
6.125%, 11/01/38

 

 

2,335

 

 

1,877,036

 

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

 

 

1,250

 

 

1,499,887

 

 

 

 

 

 




 

 

 

 

 

 

3,376,923

 









Ohio — 2.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.125%, 6/01/24

 

 

2,390

 

 

1,876,246

 

6.50%, 6/01/47

 

 

3,935

 

 

2,430,649

 

 

 

 

 

 




 

 

 

 

 

 

4,306,895

 









Pennsylvania — 8.9%

 

 

 

 

 

 

 

Allegheny County, Pennsylvania, Hospital
Development Authority, Revenue Refunding Bonds
(WestPenn Allegheny Health System), Series A,
5.375%, 11/15/40

 

 

3,015

 

 

1,596,654

 

Bucks County, Pennsylvania, IDA, Retirement Community
Revenue Bonds (Ann’s Choice Inc.), Series A:

 

 

 

 

 

 

 

6.125%, 1/01/25

 

 

200

 

 

145,898

 

6.25%, 1/01/35

 

 

1,550

 

 

1,046,916

 

Harrisburg, Pennsylvania, Authority, University Revenue
Bonds (Harrisburg University of Science), Series B,
6%, 9/01/36

 

 

900

 

 

668,349

 

Lancaster County, Pennsylvania, Hospital Authority
Revenue Bonds (Brethren Village Project), Series A:

 

 

 

 

 

 

 

6.25%, 7/01/26

 

 

685

 

 

580,805

 

6.50%, 7/01/40

 

 

590

 

 

466,194

 

Montgomery County, Pennsylvania, IDA, Revenue
Bonds (Whitemarsh Continuing Care Project),
6.125%, 2/01/28

 

 

2,330

 

 

1,527,338

 

Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds:

 

 

 

 

 

 

 

(National Gypsum Company), AMT, Series A,
6.25%, 11/01/27

 

 

3,250

 

 

1,686,945

 

(Reliant Energy), AMT, Series B, 6.75%, 12/01/36

 

 

2,810

 

 

2,585,116

 

Pennsylvania State Higher Educational Facilities
Authority, Health Services Revenue Refunding
(Allegheny Delaware Valley), Series A,
5.875%, 11/15/16

 

 

2,410

 

 

1,998,107

 

Philadelphia, Pennsylvania, Authority for IDR (Air Cargo),
AMT, Series A, 7.50%, 1/01/25

 

 

2,270

 

 

1,891,228

 

Philadelphia, Pennsylvania, Authority for IDR,
Commercial Development, 7.75%, 12/01/17

 

 

6,440

 

 

5,494,994

 

 

 

 

 

 




 

 

 

 

 

 

19,688,544

 










 

 

 

See Notes to Financial Statements.

 




20

ANNUAL REPORT

APRIL 30, 2009



 

 


 

Schedule of Investments (continued)

BlackRock MuniAssets Fund, Inc. (MUA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Rhode Island — 0.8%

 

 

 

 

 

 

 

Central Falls, Rhode Island, Detention Facility
Corporation, Revenue Refunding Bonds,
7.25%, 7/15/35

 

$

2,495

 

$

1,709,125

 









South Carolina — 0.4%

 

 

 

 

 

 

 

Connector 2000 Association, Inc., South Carolina,
Toll Road and Capital Appreciation Revenue Bonds,
Senior-Series B, 8.755%, 1/01/14 (e)

 

 

1,485

 

 

811,820

 









Tennessee — 1.3%

 

 

 

 

 

 

 

Knox County, Tennessee, Health, Educational and
Housing Facilities Board, Hospital Facilities Revenue
Refunding Bonds (Covenant Health), Series A, 5.06%,
1/01/40 (e)

 

 

6,785

 

 

693,563

 

Shelby County, Tennessee, Health, Educational and
Housing Facilities Board Revenue Bonds
(Germantown Village):

 

 

 

 

 

 

 

6.25%, 12/01/34

 

 

355

 

 

231,882

 

Series A, 7.25%, 12/01/34

 

 

2,500

 

 

1,862,525

 

 

 

 

 

 




 

 

 

 

 

 

2,787,970

 









Texas — 4.5%

 

 

 

 

 

 

 

Brazos River Authority, Texas, PCR, Refunding:

 

 

 

 

 

 

 

(TXU Energy Company LLC Project), AMT, Series A,
7.70%, 4/01/33

 

 

2,550

 

 

1,045,933

 

(TXU Energy Company Project), AMT, Series C,
5.75%, 5/01/36 (k)

 

 

2,885

 

 

1,702,150

 

Harris County, Texas, Health Facilities Development
Corporation, Hospital Revenue Refunding Bonds
(Memorial Hermann Healthcare System), Series B,
7.125%, 12/01/31

 

 

1,500

 

 

1,586,820

 

Houston, Texas, Airport System, Special Facilities
Revenue Bonds (Continental Airlines), AMT, Series E,
6.75%, 7/01/21

 

 

2,685

 

 

1,986,739

 

North Texas Tollway Authority, System Revenue
Refunding Bonds, Second Tier, Series F,
6.125%, 1/01/31

 

 

3,675

 

 

3,683,563

 

 

 

 

 

 




 

 

 

 

 

 

10,005,205

 









U.S. Virgin Islands — 1.1%

 

 

 

 

 

 

 

Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT,
6.50%, 7/01/21

 

 

3,000

 

 

2,352,870

 









Utah — 0.7%

 

 

 

 

 

 

 

Carbon County, Utah, Solid Waste Disposal, Revenue
Refunding Bonds (Laidlaw Environmental), AMT,
Series A, 7.45%, 7/01/17

 

 

1,660

 

 

1,660,913

 









Virginia — 1.3%

 

 

 

 

 

 

 

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

 

 

1,435

 

 

1,032,612

 

Fairfax County, Virginia, EDA, Residential Care Facilities,
Mortgage Revenue Refunding Bonds
(Goodwin House, Inc.):

 

 

 

 

 

 

 

5.125%, 10/01/37

 

 

750

 

 

523,253

 

5.125%, 10/01/42

 

 

450

 

 

305,676

 

Lexington, Virginia, IDA, Residential Care Facility,
Mortgage Revenue Refunding Bonds (Kendal at
Lexington), Series A, 5.375%, 1/01/28

 

 

540

 

 

366,557

 

Tobacco Settlement Financing Corporation of Virginia,
Revenue Refunding Bonds, Senior Series B-1,
5%, 6/01/47

 

 

1,320

 

 

705,170

 

 

 

 

 

 




 

 

 

 

 

 

2,933,268

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Washington — 0.5%

 

 

 

 

 

 

 

Washington State Housing Financing Commission,
Nonprofit Revenue Bonds (Skyline at First Hill Project),
Series A, 5.625%, 1/01/38

 

$

1,750

 

$

1,005,358

 









Wisconsin — 0.6%

 

 

 

 

 

 

 

Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (New Castle Place Project),
Series A, 7%, 12/01/31

 

 

1,855

 

 

1,399,227

 









Wyoming — 2.5%

 

 

 

 

 

 

 

Sweetwater County, Wyoming, Solid Waste Disposal,
Revenue Refunding Bonds (FMC Corporation Project),
AMT, 5.60%, 12/01/35

 

 

3,600

 

 

2,663,856

 

Wyoming Municipal Power Agency, Power Supply
Revenue Bonds, Series A, 5.375%, 1/01/42

 

 

3,030

 

 

2,901,801

 

 

 

 

 

 




 

 

 

 

 

 

5,565,657

 









Total Municipal Bonds — 92.6%

 

 

 

 

 

205,444,651

 










 

 

 

 

 

 

 

 


Municipal Bonds Transferred to
Tender Option Bond Trusts (f)

 

 

 

 

 

 

 









District of Columbia — 1.9%

 

 

 

 

 

 

 

District of Columbia, Water and Sewer Authority, Public
Utility Revenue Refunding Bonds, 6%, 10/01/35

 

 

3,951

 

 

4,262,775

 









Florida — 3.7%

 

 

 

 

 

 

 

Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, Series A, 5.25%, 10/01/33 (g)

 

 

8,870

 

 

8,128,557

 









Virginia — 3.9%

 

 

 

 

 

 

 

Virginia State, HDA, Commonwealth Mortgage Revenue
Bonds, Series H, Sub-Series H-1, 5.375%, 7/01/36 (h)

 

 

8,690

 

 

8,713,115

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 9.5%

 

 

 

 

 

21,104,447

 









Total Long-Term Investments
(Cost — $275,050,319) — 102.1%

 

 

 

 

 

226,549,098

 










 

 

 

 

 

 

 

 


Short-Term Securities

 

 

Shares

 

 

 

 









Money Market Fund — 0.9%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.72% (i)(j)

 

 

2,001,534

 

 

2,001,534

 









Total Short-Term Securities
(Cost — $2,001,534) — 0.9%

 

 

 

 

 

2,001,534

 









Total Investments
(Cost — $277,051,853*) — 103.0%

 

 

 

 

 

228,550,632

 

Other Assets Less Liabilities — 1.9%

 

 

 

 

 

4,118,934

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (4.9)%

 

 

 

 

 

(10,770,111

)

 

 

 

 

 




Net Assets — 100.0%

 

 

 

 

$

221,899,455

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

21



 

 


 

Schedule of Investments (concluded)

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

265,956,396

 

 

 




Gross unrealized appreciation

 

$

4,346,799

 

Gross unrealized depreciation

 

 

(52,508,209

)

 

 




Net unrealized depreciation

 

$

(48,161,410

)

 

 





 

 

(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)

AMBAC Insured.

 

 

(e)

Represents a zero-coupon bond. Rate shown 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 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.

 

 

(g)

Assured Guaranty Insured.

 

 

(h)

NPFGC Insured.

 

 

(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

 

 

(1,198,907

)

$

106,721

 










 

 

 

(j)

Represents the current yield as of report date.

 

 

(k)

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

 

 

Effective June 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

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 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 circumstance, 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 April 30, 2009 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1

 

$

2,001,534

 

Level 2

 

 

226,549,098

 

Level 3

 

 

 






Total

 

$

228,550,632

 

 

 





 

 

 

See Notes to Financial Statements.

 


22

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments April 30, 2009

BlackRock MuniEnhanced Fund, Inc. (MEN)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 1.1%

 

 

 

 

 

 

 

Jefferson County, Alabama, Limited Obligation School
Warrants, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/22

 

$

2,750

 

$

1,707,420

 

4.75%, 1/01/25

 

 

2,200

 

 

1,323,740

 

 

 

 

 

 




 

 

 

 

 

 

3,031,160

 









Arizona — 0.6%

 

 

 

 

 

 

 

Salt Verde Financial Corporation, Arizona, Senior Gas
Revenue Bonds, 5%, 12/01/37

 

 

2,640

 

 

1,778,674

 









California — 23.9%

 

 

 

 

 

 

 

Alameda Corridor Transportation Authority, California,
Capital Appreciation Revenue Refunding Bonds,
Subordinate Lien, Series A (a)(b):

 

 

 

 

 

 

 

5.543%, 10/01/24

 

 

10,285

 

 

7,643,915

 

5.496%, 10/01/25

 

 

6,000

 

 

4,385,100

 

Anaheim, California, Public Financing Authority, Lease
Revenue Bonds (Public Improvements Project),
Senior Series A, 6%, 9/01/24 (c)

 

 

5,000

 

 

5,684,900

 

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

 

 

600

 

 

596,346

 

Arcadia, California, Unified School District, GO (Election
of 2006), CABS, Series A, 4.961%, 8/01/39 (c)(e)

 

 

1,600

 

 

224,832

 

Cabrillo, California, Community College District, GO
(Election of 2004), Series B, 5.188%, 8/01/37 (d)(e)

 

 

2,400

 

 

389,040

 

California State, GO, Refunding:

 

 

 

 

 

 

 

5.125%, 6/01/27

 

 

20

 

 

19,709

 

5.125%, 6/01/31

 

 

60

 

 

56,993

 

California State University, Systemwide Revenue Bonds,
Series A, 5%, 11/01/35 (d)(f)

 

 

2,600

 

 

2,493,192

 

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

 

 

850

 

 

845,622

 

Fresno, California, Unified School District, GO (Election
of 2001), Series E, 5%, 8/01/30 (c)

 

 

900

 

 

891,792

 

Los Angeles, California, Department of Water and Power,
Waterworks Revenue Bonds, Series C, 5%, 7/01/29 (d)

 

 

5,160

 

 

5,185,284

 

Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series B-1 (d)(f):

 

 

 

 

 

 

 

5%, 10/01/29

 

 

2,965

 

 

3,002,359

 

5%, 10/01/36

 

 

1,655

 

 

1,658,840

 

Norco, California, Redevelopment Agency, Tax Allocation
Refunding Bonds (Norco Redevelopment Project —
Area Number 1), 5.125%, 3/01/30 (d)

 

 

5,000

 

 

4,617,200

 

Orange County, California, Sanitation District, COP:

 

 

 

 

 

 

 

5%, 2/01/30 (c)

 

 

1,500

 

 

1,507,545

 

5%, 2/01/31 (c)

 

 

900

 

 

901,080

 

5%, 2/01/33 (d)(f)

 

 

7,455

 

 

7,382,836

 

Poway, California, Redevelopment Agency, Tax Allocation
Refunding Bonds (Paguay Redevelopment Project),
5.125%, 6/15/33 (a)

 

 

1,750

 

 

1,442,228

 

Redding, California, Electric System, COP, Series A, 5%,
6/01/30 (c)

 

 

1,720

 

 

1,684,809

 

Sacramento, California, Unified School District, GO
(Election of 2002), 5%, 7/01/30 (d)

 

 

4,150

 

 

4,096,341

 

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

 

 

400

 

 

403,756

 

Stockton, California, Public Financing Authority, Lease
Revenue Bonds (Parking & Capital Projects), 5.125%,
9/01/30 (d)(f)

 

 

6,145

 

 

5,475,134

 

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

 

 

850

 

 

890,936

 

Ventura County, California, Community College District,
GO (Election of 2002), Series B, 5%, 8/01/30 (d)

 

 

2,325

 

 

2,303,796

 

West Basin, California, Municipal Water District, COP,
Refunding, Series B, 5%, 8/01/30 (h)

 

 

5,035

 

 

4,931,329

 

 

 

 

 

 




 

 

 

 

 

 

68,714,914

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Colorado — 1.3%

 

 

 

 

 

 

 

Colorado HFA, Revenue Refunding Bonds (S/F Program),
AMT, Senior Series A-2, 7.50%, 4/01/31

 

$

420

 

$

451,336

 

Colorado Health Facilities Authority Revenue Bonds
(Covenant Retirement Communities Inc.), Series A (i):

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

1,200

 

 

906,516

 

5.50%, 12/01/33

 

 

675

 

 

470,617

 

Denver, Colorado, City and County Airport, Revenue
Refunding Bonds, AMT, Series A, 6%, 11/15/18 (a)

 

 

2,000

 

 

2,019,780

 

 

 

 

 

 




 

 

 

 

 

 

3,848,249

 









District of Columbia — 2.9%

 

 

 

 

 

 

 

District of Columbia, Ballpark Revenue Bonds, Series B-1,
5%, 2/01/31 (d)(f)

 

 

9,600

 

 

7,373,280

 

District of Columbia, Income Tax Revenue Bonds, Series A,
5.50%, 12/01/30

 

 

1,000

 

 

1,059,230

 

 

 

 

 

 




 

 

 

 

 

 

8,432,510

 









Florida — 7.9%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,565,584

 

Broward County, Florida, Water and Sewer Utility
Revenue Bonds, Series A, 5.25%, 10/01/34

 

 

850

 

 

849,371

 

Duval County, Florida, School Board, COP (Master Lease
Program), 5%, 7/01/33 (c)

 

 

2,300

 

 

2,173,500

 

Hillsborough County, Florida, Aviation Authority Revenue
Bonds, AMT, Series A, 5.375%, 10/01/33 (h)

 

 

1,750

 

 

1,631,822

 

Miami, Florida, Special Obligation Revenue Bonds
(Street and Sidewalk Improvement Program),
5%, 1/01/37 (d)

 

 

820

 

 

753,293

 

Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, 5%, 10/01/40 (h)(i)

 

 

9,900

 

 

8,536,869

 

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

 

 

1,400

 

 

1,423,814

 

Miami-Dade County, Florida, School Board, COP,
Refunding, Series B, 5.25%, 5/01/31 (h)

 

 

1,800

 

 

1,797,660

 

Orange County, Florida, Sales Tax Revenue Refunding
Bonds, Series B, 5.125%, 1/01/32 (d)(f)

 

 

4,200

 

 

4,044,390

 

 

 

 

 

 




 

 

 

 

 

 

22,776,303

 









Georgia — 6.2%

 

 

 

 

 

 

 

Atlanta, Georgia, Water and Wastewater Revenue Bonds:

 

 

 

 

 

 

 

5%, 11/01/34 (c)

 

 

1,800

 

 

1,779,534

 

Series A, 5%, 11/01/33 (d)

 

 

1,000

 

 

886,510

 

Series A, 5%, 11/01/39 (d)

 

 

4,250

 

 

3,690,232

 

Augusta, Georgia, Water and Sewer Revenue Bonds,
5.25%, 10/01/39 (c)

 

 

2,300

 

 

2,331,257

 

Georgia Municipal Electric Authority, Power Revenue
Refunding Bonds, Series EE, 7%, 1/01/25 (a)

 

 

7,475

 

 

9,131,161

 

 

 

 

 

 




 

 

 

 

 

 

17,818,694

 









Illinois — 18.4%

 

 

 

 

 

 

 

Chicago, Illinois, O’Hare International Airport, General
Airport Revenue Bonds, Third Lien, AMT, Series B-2:

 

 

 

 

 

 

 

5.75%, 1/01/23 (c)

 

 

5,670

 

 

5,752,782

 

6%, 1/01/29 (j)

 

 

2,300

 

 

2,253,011

 

Chicago, Illinois, O’Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT,
Series A, 5.75%, 1/01/21 (d)

 

 

9,100

 

 

9,076,249

 

Cook County, Illinois, Capital Improvement, GO, Series C,
5.50%, 11/15/12 (a)(k)

 

 

2,460

 

 

2,808,680

 

Illinois Sports Facilities Authority, State Tax Supported
Revenue Bonds, 5.473%, 6/15/30 (a)(b)

 

 

20,120

 

 

18,320,266

 

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

 

 

1,875

 

 

1,942,837

 

Regional Transportation Authority, Illinois, Revenue
Bonds, Series A, 7.20%, 11/01/20 (a)

 

 

10,115

 

 

12,533,699

 

 

 

 

 

 




 

 

 

 

 

 

52,687,524

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2009

23



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Indiana — 0.1%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, Power Supply System
Revenue Bonds, Series B, 5.75%, 1/01/34

 

$

400

 

$

402,076

 









Louisiana — 6.3%

 

 

 

 

 

 

 

East Baton Rouge, Louisiana, Sewerage Commission,
Revenue Refunding Bonds, Series A,
5.25%, 2/01/39

 

 

250

 

 

242,908

 

Louisiana Local Government Environmental Facilities
and Community Development Authority, Revenue
Bonds (Capital Projects and Equipment Acquisition
Program), Series A, 6.30%, 7/01/30 (a)

 

 

3,600

 

 

3,250,224

 

Louisiana Public Facilities Authority, Revenue
Refunding Bonds (Christus Health), Series B,
6.50%, 7/01/30 (h)

 

 

1,500

 

 

1,619,355

 

Louisiana State Gas and Fuels Tax Revenue Bonds,
Series A (c):

 

 

 

 

 

 

 

4.75%, 5/01/39

 

 

4,075

 

 

3,899,245

 

5%, 5/01/36

 

 

5,400

 

 

5,412,636

 

Louisiana State Transportation Authority, Senior Lien Toll
Revenue Capital Appreciation Bonds, Series B,
5.310%, 12/01/27 (a)(e)

 

 

3,735

 

 

1,172,902

 

Rapides Financing Authority, Louisiana, Revenue Bonds
(Cleco Power LLC Project), AMT, 4.70%, 11/01/36 (a)

 

 

3,650

 

 

2,457,837

 

 

 

 

 

 




 

 

 

 

 

 

18,055,107

 









Maryland — 1.6%

 

 

 

 

 

 

 

Maryland State Community Development Administration,
Department of Housing and Community Development,
Residential Revenue Refunding Bonds, AMT, Series A,
5.75%, 9/01/39

 

 

4,645

 

 

4,676,679

 









Massachusetts — 4.7%

 

 

 

 

 

 

 

Massachusetts State Port Authority, Special Facilities
Revenue Bonds (Delta Air Lines Inc. Project), AMT,
Series A (a):

 

 

 

 

 

 

 

5.50%, 1/01/16

 

 

3,100

 

 

2,418,558

 

5.50%, 1/01/18

 

 

4,000

 

 

2,680,720

 

5.50%, 1/01/19

 

 

2,775

 

 

1,746,668

 

Massachusetts State, HFA, Rental Housing Mortgage
Revenue Bonds, AMT, Series F, 5.25%, 1/01/46 (c)

 

 

5,600

 

 

5,094,488

 

Massachusetts State, HFA, S/F Housing Revenue
Bonds, AMT, Series 128, 4.80%, 12/01/27 (c)

 

 

1,600

 

 

1,457,024

 

 

 

 

 

 




 

 

 

 

 

 

13,397,458

 









Michigan — 5.0%

 

 

 

 

 

 

 

Detroit, Michigan, Sewage Disposal System, Second
Lien Revenue Bonds, Series B, 5%, 7/01/36 (d)(f)

 

 

3,600

 

 

3,010,860

 

Detroit, Michigan, Sewage Disposal System, Second
Lien Revenue Refunding Bonds, Series E, 5.75%,
7/01/31 (f)(l)

 

 

2,500

 

 

2,562,425

 

Detroit, Michigan, Water Supply System Revenue Bonds,
Second Lien, Series B (c):

 

 

 

 

 

 

 

6.25%, 7/01/36

 

 

400

 

 

417,392

 

7%, 7/01/36

 

 

200

 

 

220,974

 

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

 

 

1,500

 

 

1,282,545

 

Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds (Detroit Edison Company
Pollution Control Project), AMT (j):

 

 

 

 

 

 

 

Series A, 5.50%, 6/01/30

 

 

1,300

 

 

1,131,689

 

Series C, 5.65%, 9/01/29

 

 

2,400

 

 

2,156,424

 

Series C, 5.45%, 12/15/32

 

 

4,300

 

 

3,648,550

 

 

 

 

 

 




 

 

 

 

 

 

14,430,859

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Minnesota — 1.2%

 

 

 

 

 

 

 

Dakota County, Minnesota, Community Development
Agency, S/F Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), Series B,
5.15%, 12/01/38 (m)(n)(o)

 

$

128

 

$

127,036

 

Minneapolis, Minnesota, Health Care System, Revenue
Refunding Bonds (Fairview Health Services), Series B,
6.50%, 11/15/38 (h)

 

 

2,950

 

 

3,198,567

 

 

 

 

 

 




 

 

 

 

 

 

3,325,603

 









Nebraska — 0.6%

 

 

 

 

 

 

 

Washington County, Nebraska, Wastewater Facilities
Revenue Bonds (Cargill Inc. Project), AMT,
5.90%, 11/01/27

 

 

1,600

 

 

1,561,328

 









Nevada — 7.2%

 

 

 

 

 

 

 

Carson City, Nevada, Hospital Revenue Bonds
(Carson-Tahoe Hospital Project), Series A, 5.50%,
9/01/33 (i)

 

 

3,100

 

 

2,235,906

 

Clark County, Nevada, Airport System Subordinate Lien
Revenue Bonds, Series A-2 (d)(f):

 

 

 

 

 

 

 

5%, 7/01/30

 

 

1,500

 

 

1,417,515

 

5%, 7/01/36

 

 

3,200

 

 

2,950,080

 

Clark County, Nevada, IDR (Southwest Gas Corporation
Project), AMT (f):

 

 

 

 

 

 

 

Series A, 4.75%, 9/01/36

 

 

75

 

 

49,287

 

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

 

 

1,300

 

 

933,036

 

Clark County, Nevada, Water Reclamation District,
GO, Series B:

 

 

 

 

 

 

 

5.50%, 7/01/29

 

 

4,500

 

 

4,702,905

 

5.75%, 7/01/34

 

 

1,825

 

 

1,934,427

 

Las Vegas Valley Water District, Nevada, GO, Refunding,
Series A, 5%, 6/01/24 (d)(f)

 

 

1,600

 

 

1,616,656

 

Las Vegas, Nevada, Limited Tax, GO (Performing
Arts Center):

 

 

 

 

 

 

 

6%, 4/01/34

 

 

850

 

 

874,913

 

6%, 4/01/39

 

 

3,780

 

 

3,894,534

 

 

 

 

 

 




 

 

 

 

 

 

20,609,259

 









New Jersey — 8.3%

 

 

 

 

 

 

 

New Jersey EDA, Cigarette Tax Revenue Bonds (i):

 

 

 

 

 

 

 

5.50%, 6/15/31

 

 

600

 

 

419,928

 

5.75%, 6/15/34

 

 

305

 

 

217,032

 

New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A (d):

 

 

 

 

 

 

 

5.25%, 7/01/31

 

 

9,325

 

 

9,312,132

 

5.25%, 7/01/33

 

 

7,800

 

 

7,778,238

 

New Jersey EDA, School Facilities Construction
Revenue Bonds:

 

 

 

 

 

 

 

Series O, 5.125%, 3/01/28

 

 

3,960

 

 

4,016,509

 

Series Z, 6%, 12/15/34 (h)

 

 

2,000

 

 

2,206,000

 

 

 

 

 

 




 

 

 

 

 

 

23,949,839

 









New York — 5.5%

 

 

 

 

 

 

 

Erie County, New York, IDA, School Facility Revenue
Bonds (City of Buffalo Project), Series A, 5.75%,
5/01/28 (c)

 

 

1,500

 

 

1,543,560

 

Metropolitan Transportation Authority, New York,
Revenue Bonds, Series C, 6.50%, 11/15/28

 

 

4,000

 

 

4,414,040

 

Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Series A, 5%,
11/15/32 (d)(f)

 

 

2,050

 

 

1,981,141

 

New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Series A, 5.75%, 6/15/40

 

 

1,250

 

 

1,342,088

 


 

 

 

See Notes to Financial Statements.

 




24

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 

New York City, New York, City Transitional Finance
Authority, Building Aid Revenue Bonds, Series S-4,
5.50%, 1/15/34

 

$

2,750

 

$

2,791,085

 

New York State Dormitory Authority, State Personal
Income Tax Revenue Bonds (Education), Series B,
5.75%, 3/15/36

 

 

1,200

 

 

1,295,604

 

Tobacco Settlement Financing Corporation of New York
Revenue Bonds, Series A-1, 5.25%, 6/01/22 (a)

 

 

2,300

 

 

2,322,678

 

 

 

 

 

 




 

 

 

 

 

 

15,690,196

 









Oregon — 0.6%

 

 

 

 

 

 

 

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

 

 

1,850

 

 

1,839,585

 









Pennsylvania — 0.6%

 

 

 

 

 

 

 

Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series 99A, 5.25%, 10/01/32

 

 

1,500

 

 

1,411,410

 

Philadelphia, Pennsylvania, School District, GO, Series E,
6%, 9/01/38

 

 

400

 

 

422,792

 

 

 

 

 

 




 

 

 

 

 

 

1,834,202

 









Rhode Island — 2.9%

 

 

 

 

 

 

 

Providence, Rhode Island, Public Building Authority,
General Revenue Bonds, Series A, 6.25%,
12/15/10 (c)(k)

 

 

4,345

 

 

4,772,548

 

Rhode Island State Economic Development
Corporation, Airport Revenue Bonds, Series B,
6.50%, 7/01/10 (f)(k)

 

 

3,355

 

 

3,608,269

 

 

 

 

 

 




 

 

 

 

 

 

8,380,817

 









South Carolina — 5.7%

 

 

 

 

 

 

 

Berkeley County, South Carolina, School District,
Installment Lease Revenue Bonds (Securing Assets
for Education Project), 5.125%, 12/01/30

 

 

3,800

 

 

3,734,070

 

Kershaw County, South Carolina, Public Schools
Foundation, Installment Power Revenue Refunding
Bonds, 5%, 12/01/29 (p)

 

 

2,365

 

 

2,308,453

 

Scago Educational Facilities Corporation for Pickens
County School District, South Carolina, Revenue
Bonds, 5%, 12/01/31 (c)

 

 

9,200

 

 

8,885,544

 

South Carolina State Public Service Authority, Revenue
Refunding Bonds, Series A, 5.50%, 1/01/38

 

 

1,275

 

 

1,338,278

 

 

 

 

 

 




 

 

 

 

 

 

16,266,345

 









Tennessee — 2.8%

 

 

 

 

 

 

 

Knox County, Tennessee, Health, Educational and
Housing Facilities Board, Hospital Facilities Revenue
Refunding Bonds (Covenant Health), Series A, 5.04%,
1/01/38 (e)

 

 

4,100

 

 

490,237

 

Metropolitan Government of Nashville and Davidson
County, Tennessee, Health and Educational Facilities
Board, Revenue Refunding Bonds (Vanderbilt
University), Series B, 5.50%, 10/01/29

 

 

5,000

 

 

5,356,150

 

Tennessee Energy Acquisition Corporation, Gas
Revenue Bonds, Series A, 5.25%, 9/01/26

 

 

2,610

 

 

2,108,697

 

 

 

 

 

 




 

 

 

 

 

 

7,955,084

 









Texas — 15.2%

 

 

 

 

 

 

 

Dallas-Fort Worth, Texas, International Airport Revenue
Bonds, AMT, Series A, 5.50%, 11/01/33 (d)

 

 

13,000

 

 

12,330,630

 

Dallas-Fort Worth, Texas, International Airport, Joint
Revenue Bonds, AMT, Series B, 6%, 11/01/23 (d)

 

 

600

 

 

601,056

 

Houston, Texas, Combined Utility System, First
LienRevenue Refunding Bonds, Series A, 6%,
11/15/35 (h)

 

 

2,100

 

 

2,235,135

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

Lewisville, Texas, Independent School District, Capital
Appreciation and School Building, GO, Refunding,
4.671%, 8/15/24 (d)(e)(f)

 

$

4,475

 

$

1,966,226

 

Mansfield, Texas, Independent School District, GO,
5%, 2/15/33

 

 

1,725

 

 

1,758,310

 

Matagorda County, Texas, Navigation District Number 1,
PCR, Refunding (Central Power and Light Company
Project), AMT, 5.20%, 5/01/30 (d)

 

 

2,400

 

 

1,877,736

 

North Harris County, Texas, Regional Water Authority,
Senior Lien Revenue Bonds, 5.125%, 12/15/35 (d)

 

 

5,720

 

 

5,585,637

 

North Texas Tollway Authority, System Revenue
Refunding Bonds, First Tier:

 

 

 

 

 

 

 

5.75%, 1/01/40 (d)

 

 

1,600

 

 

1,605,264

 

Series A, 6%, 1/01/25

 

 

625

 

 

656,813

 

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

 

 

3,800

 

 

3,971,646

 

Series K-2, 6%, 1/01/38 (h)

 

 

4,015

 

 

4,287,819

 

Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, First Tier, Series A, 5.50%,
8/15/39 (a)

 

 

7,150

 

 

6,827,321

 

 

 

 

 

 




 

 

 

 

 

 

43,703,593

 









Utah — 1.8%

 

 

 

 

 

 

 

Utah Transit Authority, Sales Tax Revenue Bonds,
Series A, 5%, 6/15/36 (c)

 

 

5,000

 

 

5,080,300

 









Vermont — 0.9%

 

 

 

 

 

 

 

Vermont HFA, S/F Housing Revenue Bonds, AMT,
Series 27, 4.85%, 11/01/32 (c)

 

 

3,000

 

 

2,640,630

 









Virginia — 0.1%

 

 

 

 

 

 

 

Fairfax County, Virginia, IDA, Health Care Revenue
Refunding Bonds (Inova Health System Project),
Series A, 5.50%, 5/15/35

 

 

350

 

 

354,028

 









Washington — 0.2%

 

 

 

 

 

 

 

Port of Tacoma, Washington, GO, AMT, Series B, 4.875%,
12/01/38 (h)

 

 

515

 

 

435,082

 









Wisconsin — 0.7%

 

 

 

 

 

 

 

Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (Ascension Health), 5%,
11/15/31 (c)

 

 

2,125

 

 

2,033,583

 









Total Municipal Bonds — 134.3%

 

 

 

 

 

385,709,681

 










 

 

 

 

 

 

 

 









Municipal Bonds Transferred to
Tender Option Bond Trusts (q)

 

 

 

 

 

 

 









California — 1.8%

 

 

 

 

 

 

 

Anaheim, California, Public Financing Authority, Electric
System Distribution Facilities Revenue Bonds,
Series A, 5%, 10/01/31 (c)

 

 

959

 

 

944,206

 

San Diego County, California, Water Authority, Water
Revenue Refunding Bonds, COP, Series A, 5%,
5/01/33 (c)

 

 

2,810

 

 

2,763,719

 

Tamalpais, California, Union High School District, GO
(Election of 2001), 5%, 8/01/28 (c)

 

 

1,605

 

 

1,568,197

 

 

 

 

 

 




 

 

 

 

 

 

5,276,122

 









District of Columbia — 0.7%

 

 

 

 

 

 

 

District of Columbia, Water and Sewer Authority, Public
Utility Revenue Refunding Bonds, 6%, 10/01/35

 

 

1,770

 

 

1,910,154

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 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 (q)

 

Par
(000)

 

Value

 







Florida — 4.0%

 

 

 

 

 

 

 

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

 

$

12,000

 

$

11,561,520

 









Georgia — 6.1%

 

 

 

 

 

 

 

Atlanta, Georgia, Airport General Revenue Refunding
Bonds, Series B, 5.25%, 1/01/33 (c)

 

 

17,356

 

 

17,471,902

 









Illinois — 0.7%

 

 

 

 

 

 

 

Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds
(McCormick Place Expansion Project), Series B,
5.75%, 6/15/23 (d)

 

 

1,999

 

 

2,105,227

 









Massachusetts — 3.8%

 

 

 

 

 

 

 

Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A, 5%,
8/15/30 (c)

 

 

10,600

 

 

10,799,235

 









New Hampshire — 2.6%

 

 

 

 

 

 

 

New Hampshire Health and Education Facilities
Authority Revenue Bonds (Dartmouth-Hitchcock
Obligation Group), 5.5%, 8/01/27 (c)

 

 

7,390

 

 

7,450,524

 









New Jersey — 5.3%

 

 

 

 

 

 

 

New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%,
6/15/24 (h)

 

 

15,250

 

 

15,064,103

 









South Carolina — 2.4%

 

 

 

 

 

 

 

Charleston Educational Excellence Financing
Corporation, South Carolina, Revenue Bonds
(Charleston County School District) (h):

 

 

 

 

 

 

 

5.25%, 12/01/28

 

 

3,120

 

 

3,144,024

 

5.25%, 12/01/29

 

 

2,765

 

 

2,772,493

 

5.25%, 12/01/30

 

 

1,010

 

 

1,006,071

 

 

 

 

 

 




 

 

 

 

 

 

6,922,588

 









Texas — 0.8%

 

 

 

 

 

 

 

Clear Creek Texas Independent School District,
Refunding, 5%, 2/15/33

 

 

2,200

 

 

2,263,723

 









Virginia — 0.8%

 

 

 

 

 

 

 

Virginia State, HDA, Commonwealth Mortgage Revenue
Bonds, Series H, Sub-Series H-1, 5.35%, 7/01/31 (f)

 

 

2,310

 

 

2,322,012

 









Washington — 1.4%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation Authority,
Washington, Sales and Use Tax Revenue Bonds,
Series A, 5%, 11/01/32 (c)

 

 

4,004

 

 

4,040,079

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 30.4%

 

 

 

 

 

87,187,189

 









Total Long-Term Investments
(Cost — $496,917,541) — 164.7%

 

 

 

 

 

472,896,870

 










 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 









Pennsylvania — 3.5%

 

 

 

 

 

 

 

Philadelphia, Pennsylvania, GO, Refunding, Series B,
3.50%, 5/01/09 (c)(r)

 

$

10,000

 

$

10,000,000

 










 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 









Money Market — 1.1%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.72% (s)(t)

 

 

3,302,493

 

 

3,302,493

 









Total Short-Term Securities
(Cost — $13,302,493) — 4.6%

 

 

 

 

 

13,302,493

 









Total Investments (Cost — $510,220,034*) — 169.3%

 

 

 

 

 

486,199,363

 

Other Assets Less Liabilities — 2.0%

 

 

 

 

 

5,759,867

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (16.0)%

 

 

 

 

 

(46,005,743

)

Preferred Shares, at Redemption Value — (55.3)%

 

 

 

 

 

(158,875,005

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

287,078,482

 

 

 

 

 

 





 

 


*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2009, as computed for federal income tax purposes, were as follows: