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 811-07642

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

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock MuniAssets 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:


 

 

 

 

 

Aggregate cost

 

$

464,697,651

 

 

 




Gross unrealized appreciation

 

$

13,670,400

 

Gross unrealized depreciation

 

 

(38,020,225

)

 

 




Net unrealized depreciation

 

$

(24,349,825

)

 

 





 

 

(a)

AMBAC Insured.

 

 

(b)

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

 

 

(c)

FSA Insured.

 

 

(d)

NPFGC Insured.

 

 

(e)

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

 

 

(f)

FGIC Insured.

 

 

(g)

When-issued security.

 

 

(h)

Assured Guaranty Insured.

 

 

(i)

Radian Insured.

 

 

(j)

XL Capital Insured.

 

 

(k)

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.

 

 

(l)

BHAC Insured.

 

 

(m)

GNMA Collateralized.

 

 

(n)

FNMA Collateralized.

 

 

(o)

FHLMC Collateralized.

 

 

(p)

CIFG Insured.

 

 

(q)

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.

 

 

(r)

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

 

 

(s)

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

 

 

(16,508,607

)

$

196,216

 










 

 

(t)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.

 


26

ANNUAL REPORT

APRIL 30, 2009



 

 


 

Schedule of Investments (concluded)

BlackRock MuniEnhanced Fund, Inc. (MEN)


 

 

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements,” 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

 

$

3,302,493

 

Level 2

 

 

482,896,870

 

Level 3

 

 

 






Total

 

$

486,199,363

 

 

 





 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

27



 

 


 

Schedule of Investments April 30, 2009

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 2.6%

 

 

 

 

 

 

 

Camden, Alabama, IDB, Exempt Facilities Revenue
Bonds (Weyerhaeuser Company), Series A,
6.125%, 12/01/13 (a)

 

$

1,750

 

$

2,058,070

 

Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 5%, 1/01/24

 

 

4,550

 

 

2,733,367

 

 

 

 

 

 




 

 

 

 

 

 

4,791,437

 









Arizona — 5.5%

 

 

 

 

 

 

 

Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A:

 

 

 

 

 

 

 

6.50%, 7/01/12

 

 

400

 

 

358,476

 

6.75%, 7/01/29

 

 

2,200

 

 

1,468,214

 

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

 

 

2,215

 

 

1,362,203

 

Pinal County, Arizona, COP, 5%, 12/01/29

 

 

1,000

 

 

883,710

 

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

 

 

 

 

 

 

 

5%, 12/01/32

 

 

3,505

 

 

2,433,837

 

5%, 12/01/37

 

 

4,905

 

 

3,304,695

 

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

 

 

365

 

 

343,545

 

 

 

 

 

 




 

 

 

 

 

 

10,154,680

 









California — 23.1%

 

 

 

 

 

 

 

Agua Caliente Band of Cahuilla Indians, California,
Casino Revenue Bonds, 5.60%, 7/01/13

 

 

875

 

 

787,062

 

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

 

 

1,840

 

 

1,913,398

 

California Pollution Control Financing Authority, PCR,
Refunding (Pacific Gas & Electric), AMT, Series A,
5.35%, 12/01/16 (b)

 

 

6,810

 

 

6,692,800

 

California State, GO, 6.50%, 4/01/33

 

 

8,370

 

 

9,143,472

 

California State, GO, Refunding, 5%, 6/01/32

 

 

2,455

 

 

2,277,331

 

California State Public Works Board, Lease Revenue
Bonds (Department of Corrections), Series C,
5.25%, 6/01/28

 

 

3,145

 

 

2,932,995

 

California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6%, 10/01/23

 

 

3,870

 

 

3,927,663

 

East Side Union High School District, California,
Santa Clara County, GO (Election of 2002), Series D,
5%, 8/01/21 (c)

 

 

2,000

 

 

2,056,360

 

Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series A-3, 7.875%, 6/01/13 (a)

 

 

1,165

 

 

1,410,337

 

Montebello, California, Unified School District,
GO (b)(d)(e):

 

 

 

 

 

 

 

5.616%, 8/01/22

 

 

2,405

 

 

1,197,425

 

5.607%, 8/01/23

 

 

2,455

 

 

1,122,450

 

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

 

 

750

 

 

757,042

 

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

 

 

3,475

 

 

1,040,311

 

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

 

 

5,210

 

 

4,761,263

 

Tustin, California, Unified School District, Senior Lien
Special Tax Bonds (Community Facilities District
Number 97-1), Series A, 5%, 9/01/32 (h)

 

 

2,815

 

 

2,658,204

 

 

 

 

 

 




 

 

 

 

 

 

42,678,113

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Colorado — 4.4%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Revenue Refunding
Bonds (Poudre Valley Health Care) (h):

 

 

 

 

 

 

 

Series B, 5.25%, 3/01/36

 

$

1,000

 

$

943,680

 

Series C, 5.25%, 3/01/40

 

 

1,750

 

 

1,637,318

 

Elk Valley, Colorado, Public Improvement Revenue
Bonds (Public Improvement Fee), Series A,
7.35%, 9/01/31

 

 

2,645

 

 

2,103,145

 

Platte River Power Authority, Colorado, Power Revenue
Bonds, Series HH:

 

 

 

 

 

 

 

5%, 6/01/27

 

 

870

 

 

906,357

 

5%, 6/01/28

 

 

395

 

 

408,588

 

Plaza Metropolitan District Number 1, Colorado, Tax
Allocation Revenue Bonds (Public Improvement
Fees), 8.125%, 12/01/25

 

 

1,000

 

 

768,500

 

University of Colorado, Enterprise System Revenue
Bonds, Series A, 5.375%, 6/01/38

 

 

1,250

 

 

1,292,725

 

 

 

 

 

 




 

 

 

 

 

 

8,060,313

 









Connecticut — 2.3%

 

 

 

 

 

 

 

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

 

 

2,165

 

 

1,913,622

 

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

 

 

2,735

 

 

2,359,293

 

 

 

 

 

 




 

 

 

 

 

 

4,272,915

 









Florida — 8.7%

 

 

 

 

 

 

 

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

 

 

750

 

 

749,445

 

Greater Orlando Aviation Authority, Florida, Airport
Facilities Revenue Bonds (JetBlue Airways Corp.),
AMT, 6.50%, 11/15/36

 

 

2,095

 

 

1,242,440

 

Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT,
Series B, 7.125%, 4/01/30

 

 

1,900

 

 

975,973

 

Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (H. Lee Moffitt Cancer Center Project), Series A,
5.25%, 7/01/37

 

 

3,190

 

 

2,649,008

 

Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
Series A, 5.25%, 10/01/38 (i)

 

 

1,795

 

 

1,619,072

 

Miami-Dade County, Florida, Special Obligation Revenue
Bonds, Sub-Series A, 5.24%, 10/01/37 (b)(e)

 

 

2,340

 

 

256,534

 

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

 

 

 

 

 

 

 

Series A, 6.25%, 5/01/37

 

 

1,530

 

 

977,884

 

Series B, 6.50%, 5/01/37

 

 

2,495

 

 

1,650,617

 

Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional
Healthcare), 6%, 12/01/12 (a)

 

 

3,225

 

 

3,743,290

 

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

 

 

800

 

 

883,200

 

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

 

 

695

 

 

374,709

 

Preserve at Wilderness Lake, Florida, Community
Development District, Capital Improvement Bonds,
Series A, 5.90%, 5/01/34

 

 

1,560

 

 

1,029,023

 

 

 

 

 

 




 

 

 

 

 

 

16,151,195

 










 

 

 

See Notes to Financial Statements.

 


28

ANNUAL REPORT

APRIL 30, 2009



 

 


 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Georgia — 3.7%

 

 

 

 

 

 

 

Atlanta, Georgia, Tax Allocation Refunding Bonds
(Atlantic Station Project) (i):

 

 

 

 

 

 

 

5.25%, 12/01/20

 

$

1,000

 

$

1,034,800

 

5.25%, 12/01/21

 

 

2,000

 

 

2,048,220

 

5.25%, 12/01/22

 

 

1,000

 

 

1,020,030

 

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

 

 

1,185

 

 

441,424

 

Private Colleges and Universities Authority, Georgia,
Revenue Refunding Bonds (Emory University Project),
Series C, 5%, 9/01/38

 

 

2,260

 

 

2,295,256

 

 

 

 

 

 




 

 

 

 

 

 

6,839,730

 









Illinois — 3.2%

 

 

 

 

 

 

 

Chicago, Illinois, Special Assessment Bonds (Lake Shore
East), 6.75%, 12/01/32

 

 

1,200

 

 

823,416

 

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

 

 

4,000

 

 

3,908,720

 

Illinois State Finance Authority Revenue Bonds:

 

 

 

 

 

 

 

(Landing At Plymouth Place Project), Series A,
6%, 5/15/25

 

 

700

 

 

516,817

 

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

 

 

1,010

 

 

611,868

 

 

 

 

 

 




 

 

 

 

 

 

5,860,821

 









Indiana — 0.4%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, Power Supply System
Revenue Bonds, Series B, 6%, 1/01/39

 

 

775

 

 

798,413

 









Kentucky — 1.1%

 

 

 

 

 

 

 

Louisville and Jefferson Counties, Kentucky, Metropolitan
Sewer District, Sewer and Drain System Revenue
Bonds, Series A, 5.50%, 5/15/34 (b)

 

 

2,000

 

 

2,034,440

 









Louisiana — 6.1%

 

 

 

 

 

 

 

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

 

 

570

 

 

553,829

 

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

 

 

3,500

 

 

2,436,175

 

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

 

 

4,115

 

 

3,502,976

 

Louisiana Public Facilities Authority Revenue Bonds
(Black & Gold Facilities Project), Series A, 5%,
7/01/39 (l)

 

 

3,815

 

 

2,853,811

 

New Orleans, Louisiana, Financing Authority Revenue
Bonds (Xavier University of Louisiana Project),
5.30%, 6/01/12 (a)(b)

 

 

1,750

 

 

1,950,358

 

 

 

 

 

 




 

 

 

 

 

 

11,297,149

 









Maryland — 2.7%

 

 

 

 

 

 

 

Anne Arundel County, Maryland, Special Obligation
Revenue Bonds (Arundel Mills Project), 7.10%,
7/01/09 (a)

 

 

1,870

 

 

1,924,473

 

Maryland State Economic Development Corporation,
Student Housing Revenue Bonds (University of
Maryland College Park Project), 6%, 6/01/13 (a)

 

 

760

 

 

894,284

 

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

 

 

2,750

 

 

2,087,827

 

 

 

 

 

 




 

 

 

 

 

 

4,906,584

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Massachusetts — 1.4%

 

 

 

 

 

 

 

Massachusetts State, HFA, Housing Revenue Bonds,
AMT, Series A, 5.25%, 12/01/48

 

$

2,900

 

$

2,645,148

 









Michigan — 2.1%

 

 

 

 

 

 

 

Flint, Michigan, Hospital Building Authority, Revenue
Refunding Bonds (Hurley Medical Center), Series A,
6%, 7/01/20 (m)

 

 

1,400

 

 

1,121,176

 

Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds (Detroit Edison Company
Pollution Control Project), AMT, Series B,
5.65%, 9/01/29

 

 

3,000

 

 

2,683,170

 

 

 

 

 

 




 

 

 

 

 

 

3,804,346

 









Minnesota — 1.2%

 

 

 

 

 

 

 

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

 

 

2,135

 

 

2,221,660

 









Mississippi — 2.9%

 

 

 

 

 

 

 

Mississippi Business Finance Corporation, Mississippi,
PCR, Refunding (System Energy Resources Inc. Project),
5.90%, 5/01/22

 

 

2,500

 

 

2,287,650

 

Mississippi Development Bank, Special Obligation
Revenue Refunding Bonds (Gulfport Water and Sewer
System Project) (h):

 

 

 

 

 

 

 

5.25%, 7/01/17

 

 

1,000

 

 

1,111,560

 

5.25%, 7/01/19

 

 

810

 

 

878,672

 

University of Southern Mississippi Education Building
Corporation Revenue Bonds (Campus Facilities
Improvements Project), 5.375%, 9/01/36

 

 

975

 

 

994,695

 

 

 

 

 

 




 

 

 

 

 

 

5,272,577

 









Missouri — 0.4%

 

 

 

 

 

 

 

Missouri State Development Finance Board,
Infrastructure Facilities Revenue Refunding Bonds
(Branson), Series A, 5.50%, 12/01/32

 

 

1,000

 

 

821,980

 









New Jersey — 8.0%

 

 

 

 

 

 

 

New Jersey EDA, Cigarette Tax Revenue Bonds:

 

 

 

 

 

 

 

5.75%, 6/15/29

 

 

5,385

 

 

3,976,661

 

5.75%, 6/15/34

 

 

2,280

 

 

1,622,402

 

New Jersey EDA, Retirement Community Revenue
Bonds (Seabrook Village Inc.), Series A, 8.25%,
11/15/10 (a)

 

 

2,600

 

 

2,907,008

 

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

 

 

 

 

 

 

 

6.625%, 9/15/12

 

 

1,000

 

 

872,510

 

6.25%, 9/15/29

 

 

2,950

 

 

1,886,525

 

New Jersey State Turnpike Authority, Turnpike Revenue
Bonds, Series C, 5%, 1/01/30 (h)

 

 

3,500

 

 

3,558,485

 

 

 

 

 

 




 

 

 

 

 

 

14,823,591

 









New York — 10.5%

 

 

 

 

 

 

 

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

 

 

1,100

 

 

986,546

 

Long Island Power Authority, New York, Electric System
Revenue Refunding Bonds, Series A, 5.75%, 4/01/39

 

 

1,450

 

 

1,508,044

 

Metropolitan Transportation Authority, New York,
Dedicated Tax Fund Revenue Bonds, Series B,
5%, 11/15/34

 

 

1,740

 

 

1,688,670

 

New York City, New York, City IDA, Civic Facility Revenue
Bonds, Series C, 6.80%, 6/01/28

 

 

535

 

 

524,883

 

New York City, New York, City IDA, Special Facility
Revenue Bonds (Continental Airlines Inc. Project), AMT:

 

 

 

 

 

 

 

8%, 11/01/12

 

 

725

 

 

609,022

 

8.375%, 11/01/16

 

 

725

 

 

499,866

 


 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

29



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 

New York City, New York, City Municipal Water Finance
Authority, Second General Resolution, Water and
Sewer System Revenue Bonds, Series FF-2,
5.50%, 6/15/40

 

$

1,110

 

$

1,167,576

 

New York City, New York, City Transitional Finance
Authority, Building Aid Revenue Refunding Bonds,
Series S-1, 4.50%, 1/15/38

 

 

700

 

 

604,898

 

New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5%,
10/15/20 (b)

 

 

1,000

 

 

1,096,000

 

Tobacco Settlement Financing Corporation of New York
Revenue Bonds:

 

 

 

 

 

 

 

Series A-1, 5.50%, 6/01/18

 

 

3,150

 

 

3,254,265

 

Series C-1, 5.50%, 6/01/17

 

 

3,500

 

 

3,594,780

 

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

 

 

1,400

 

 

1,427,118

 

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

 

 

2,080

 

 

2,424,760

 

 

 

 

 

 




 

 

 

 

 

 

19,386,428

 









Ohio — 1.7%

 

 

 

 

 

 

 

American Municipal Power, Inc., Ohio, Revenue
Refunding Bonds (Prairie State Energy Campus
Project), Series A, 5%, 2/15/38

 

 

1,855

 

 

1,799,777

 

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

 

 

2,160

 

 

1,334,232

 

 

 

 

 

 




 

 

 

 

 

 

3,134,009

 









Pennsylvania — 6.6%

 

 

 

 

 

 

 

Bucks County, Pennsylvania, IDA, Retirement Community
Revenue Bonds (Ann’s Choice Inc.), Series A,
6.25%, 1/01/35

 

 

1,700

 

 

1,148,231

 

Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds
(National Gypsum Company), AMT, Series B,
6.125%, 11/01/27

 

 

3,500

 

 

1,816,850

 

Pennsylvania Economic Development Financing
Authority, Water Facility Revenue Bonds (Pennsylvania —
American Water Company Project), 6.20%, 4/01/39

 

 

2,520

 

 

2,602,757

 

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

 

 

725

 

 

618,613

 

Philadelphia, Pennsylvania, Authority for Industrial
Development, Senior Living Revenue Bonds:

 

 

 

 

 

 

 

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

 

 

1,105

 

 

820,286

 

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

 

 

1,245

 

 

924,213

 

Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Bonds (Guthrie Healthcare System),
Series B, 7.125%, 12/01/11 (a)

 

 

3,500

 

 

4,261,845

 

 

 

 

 

 




 

 

 

 

 

 

12,192,795

 









Puerto Rico — 0.5%

 

 

 

 

 

 

 

Puerto Rico Industrial, Medical and Environmental
Pollution Control Facilities Financing Authority, Special
Facilities Revenue Bonds (American Airlines Inc.),
Series A, 6.45%, 12/01/25

 

 

2,060

 

 

824,021

 









Rhode Island — 1.8%

 

 

 

 

 

 

 

Rhode Island State Health and Educational Building
Corporation, Hospital Financing Revenue Bonds
(Lifespan Obligation Group), 6.50%, 8/15/12 (a)

 

 

2,820

 

 

3,245,566

 









South Carolina — 1.9%

 

 

 

 

 

 

 

Medical University Hospital Authority, South Carolina,
Hospital Facilities Revenue Refunding Bonds, Series A,
6.375%, 8/15/12 (a)

 

 

3,020

 

 

3,506,915

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









South Dakota — 0.9%

 

 

 

 

 

 

 

South Dakota State Health and Educational Facilities
Authority Revenue Bonds (Sanford Health),
5%, 11/01/40

 

$

1,825

 

$

1,595,871

 









Tennessee — 4.7%

 

 

 

 

 

 

 

Hardeman County, Tennessee, Correctional Facilities
Corporation Revenue Bonds, 7.75%, 8/01/17

 

 

3,750

 

 

3,416,325

 

Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Methodist Healthcare), 6.50%, 9/01/12 (a)

 

 

1,845

 

 

2,146,012

 

Tennessee Educational Loan Revenue Bonds
(Educational Funding South Inc.), AMT, Senior
Series B, 6.20%, 12/01/21

 

 

3,160

 

 

3,152,700

 

 

 

 

 

 




 

 

 

 

 

 

8,715,037

 









Texas — 16.5%

 

 

 

 

 

 

 

Brazos River Authority, Texas, PCR, Refunding (TXU
Energy Company Project), AMT, Series C,
5.75%, 5/01/36 (t)

 

 

2,660

 

 

1,569,400

 

Brazos River, Texas, Harbor Navigation District, Brazoria
County Environmental Revenue Refunding Bonds
(Dow Chemical Company Project), AMT, Series A-7,
6.625%, 5/15/33

 

 

3,655

 

 

2,887,377

 

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

 

 

1,910

 

 

2,024,848

 

Harris County, Texas, Toll Road Revenue Bonds, Senior
Lien, Series A, 5%, 8/15/38

 

 

4,625

 

 

4,568,575

 

Lower Colorado River Authority, Texas, PCR (Samsung
Austin Semiconductor), AMT, 6.375%, 4/01/27

 

 

3,000

 

 

3,007,470

 

Matagorda, Texas, Hospital District Revenue Bonds,
5%, 2/15/35 (n)

 

 

4,500

 

 

4,071,060

 

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

 

 

4,190

 

 

4,199,763

 

San Antonio Energy Acquisition Public Facilities
Corporation, Texas, Gas Supply Revenue Bonds:

 

 

 

 

 

 

 

5.50%, 8/01/23

 

 

2,425

 

 

2,074,175

 

5.50%, 8/01/24

 

 

1,100

 

 

940,060

 

5.50%, 8/01/25

 

 

1,120

 

 

944,776

 

Texas State Department of Housing and Community
Affairs, Residential Mortgage Revenue Bonds, AMT,
Series A, 5.70%, 1/01/33 (o)(p)

 

 

1,745

 

 

1,773,269

 

Texas State Department of Housing and Community
Affairs, Residential Mortgage Revenue Refunding
Bonds, AMT, Series B, 5.25%, 7/01/22 (o)(p)

 

 

2,565

 

 

2,487,383

 

 

 

 

 

 




 

 

 

 

 

 

30,548,156

 









U.S. Virgin Islands — 1.5%

 

 

 

 

 

 

 

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

 

 

3,460

 

 

2,713,645

 









Vermont — 1.2%

 

 

 

 

 

 

 

Vermont Educational and Health Buildings Financing
Agency, Revenue Bonds (Developmental and
Mental Health), Series A, 6%, 6/15/17

 

 

2,370

 

 

2,219,221

 









Virginia — 3.1%

 

 

 

 

 

 

 

Chesterfield County, Virginia, IDA, PCR (Virginia Electric
and Power Company), Series A, 5.875%, 6/01/17

 

 

1,150

 

 

1,189,663

 

Fairfax County, Virginia, EDA, Resource Recovery
Revenue Refunding Bonds, AMT, Series A,
6.10%, 2/01/11 (g)

 

 

3,000

 

 

3,109,980

 

Tobacco Settlement Financing Corporation of Virginia,
Asset-Backed Revenue Bonds, 5.625%, 6/01/15 (a)

 

 

1,290

 

 

1,489,241

 

 

 

 

 

 




 

 

 

 

 

 

5,788,884

 










 

 

 

See Notes to Financial Statements.

 




30

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund, Inc. (MHD)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Washington — 0.6%

 

 

 

 

 

 

 

Seattle, Washington, Housing Authority Revenue Bonds
(Replacement Housing Project), 6.125%, 12/01/32

 

$

1,325

 

$

1,039,966

 









Wisconsin — 4.1%

 

 

 

 

 

 

 

Wisconsin State Health and Educational Facilities
Authority Revenue Bonds:

 

 

 

 

 

 

 

(New Castle Place Project), Series A, 7%, 12/01/31

 

 

825

 

 

622,297

 

(SynergyHealth Inc.), 6%, 11/15/32

 

 

1,755

 

 

1,767,882

 

Wisconsin State, General Fund Annual Appropriation
Bonds, Series A, 6%, 5/01/36

 

 

4,980

 

 

5,247,974

 

 

 

 

 

 




 

 

 

 

 

 

7,638,153

 









Total Municipal Bonds — 135.4%

 

 

 

 

 

249,983,759

 










 

 

 

 

 

 

 

 









Municipal Bonds Transferred to
Tender Option Bond Trusts (q)

 

 

 

 

 

 

 









California — 1.9%

 

 

 

 

 

 

 

Sequoia, California, Unified High School District, GO,
Refunding, Series B, 5.50%, 7/01/35 (h)

 

 

3,494

 

 

3,543,616

 









Colorado — 2.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority Revenue Bonds
(Catholic Health) (h):

 

 

 

 

 

 

 

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

 

 

2,580

 

 

2,473,446

 

Series C-7, 5%, 9/01/36

 

 

1,650

 

 

1,583,439

 

 

 

 

 

 




 

 

 

 

 

 

4,056,885

 









Connecticut — 3.6%

 

 

 

 

 

 

 

Connecticut State Health and Educational Facilities
Authority Revenue Bonds (Yale University):

 

 

 

 

 

 

 

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

 

 

3,180

 

 

3,268,881

 

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

 

 

3,270

 

 

3,338,343

 

 

 

 

 

 




 

 

 

 

 

 

6,607,224

 









Massachusetts — 2.8%

 

 

 

 

 

 

 

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

 

 

4,994

 

 

5,088,049

 









New York — 2.4%

 

 

 

 

 

 

 

New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5.25%,
10/15/27 (g)

 

 

4,240

 

 

4,421,472

 









Tennessee — 1.2%

 

 

 

 

 

 

 

Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Saint Jude Children’s Research Hospital),
5%, 7/01/31

 

 

2,250

 

 

2,249,843

 









Texas — 6.7%

 

 

 

 

 

 

 

Harris County, Texas, Toll Road Revenue Refunding
Bonds, Senior Lien, Series A, 5.25%, 8/15/35 (h)

 

 

11,760

 

 

12,457,133

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Virginia — 9.3%

 

 

 

 

 

 

 

University of Virginia, Revenue Refunding Bonds,
5%, 6/01/40

 

$

3,750

 

$

3,871,463

 

Virginia State, HDA, Commonwealth Mortgage Revenue
Bonds, Series H, Sub-Series H-1 (b):

 

 

 

 

 

 

 

5.35%, 7/01/31

 

 

2,370

 

 

2,382,324

 

5.375%, 7/01/36

 

 

10,940

 

 

10,969,100

 

 

 

 

 

 




 

 

 

 

 

 

17,222,887

 









Washington — 1.0%

 

 

 

 

 

 

 

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

 

 

1,860

 

 

1,876,291

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 31.1%

 

 

 

 

 

57,523,400

 









Total Long-Term Investments
(Cost — $332,855,996) — 166.5%

 

 

 

 

 

307,507,159

 










 

 

 

 

 

 

 

 









Short-Term Securities

 

Shares

 

 

 

 









Money Market Fund — 1.0%

 

 

 

 

 

 

 

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

 

 

1,910,337

 

 

1,910,337

 









Total Short-Term Securities
(Cost — $1,910,337) — 1.0%

 

 

 

 

 

1,910,337

 









Total Investments (Cost — $334,766,333*) — 167.5%

 

 

 

 

 

309,417,496

 

Liabilities in Excess of Other Assets — (1.3)%

 

 

 

 

 

(2,386,292

)

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (16.4)%

 

 

 

 

 

(30,411,678

)

Preferred Shares, at Redemption Value — (49.8)%

 

 

 

 

 

(91,934,549

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

184,684,977

 

 

 

 

 

 




 

 



*

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

 

 

 

 

$

304,312,228

 

 

 

 

 

 




Gross unrealized appreciation

 

 

 

 

$

8,333,653

 

Gross unrealized depreciation

 

 

 

 

 

(33,516,341

)

 

 

 

 

 




Net unrealized depreciation

 

 

 

 

$

(25,182,688

)

 

 

 

 

 





 

 

(a)

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

 

 

(b)

NPFGC Insured.

 

 

(c)

XL Capital Insured.

 

 

(d)

FGIC Insured.

 

 

(e)

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

 

 

(f)

When-issued security.

 

 

(g)

AMBAC Insured.

 

 

(h)

FSA Insured.

 

 

(i)

Assured Guaranty Insured.

 

 

(j)

Non-income producing security.

 

 

(k)

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

 

 

(l)

CIFG Insured.

 

 

(m)

ACA Insured.

 

 

(n)

FHA Insured.


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2009

31



 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund, Inc. (MHD)


 

 

(o)

FNMA Collateralized.

 

 

(p)

GNMA Collateralized.

 

 

(q)

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.

 

 

(r)

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


 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







FFI Institutional Tax-Exempt Fund

 

1,901,366

 

$

35,142

 








 

 

 

(s)

Represents the current yield as of report date.

 

 

(t)

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

 

 

Effective May 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

 

$

1,910,337

 

Level 2

 

 

307,507,159

 

Level 3

 

 

 





 

Total

 

$

309,417,496

 

 

 



 


 

 

 

See Notes to Financial Statements.




32

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments April 30, 2009

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 1.5%

 

 

 

 

 

 

 

Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 5%, 1/01/24

 

$

3,450

 

$

2,072,553

 









Arizona — 6.5%

 

 

 

 

 

 

 

Arizona Health Facilities Authority Revenue Bonds
(Catholic Healthcare West), Series A, 6.625%, 7/01/20

 

 

1,000

 

 

1,069,720

 

Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.50%, 7/01/12

 

 

1,325

 

 

1,187,452

 

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

 

 

2,060

 

 

1,266,879

 

Pima County, Arizona, IDA, Education Revenue Bonds
(Arizona Charter Schools Project), Series C,
6.75%, 7/01/31

 

 

960

 

 

674,371

 

Pinal County, Arizona, COP, 5%, 12/01/29

 

 

1,000

 

 

883,710

 

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

 

 

 

 

 

 

 

5%, 12/01/32

 

 

2,535

 

 

1,760,279

 

5%, 12/01/37

 

 

2,175

 

 

1,465,385

 

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

 

 

755

 

 

710,621

 

 

 

 

 

 




 

 

 

 

 

 

9,018,417

 









California — 25.2%

 

 

 

 

 

 

 

Benicia, California, Unified School District, GO,
Refunding, Series A, 5.62%, 8/01/20 (a)(b)(c)

 

 

2,000

 

 

1,144,420

 

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

 

 

1,335

 

 

1,388,253

 

California State, GO, 6.50%, 4/01/33

 

 

7,325

 

 

8,001,903

 

California State Public Works Board, Lease Revenue
Bonds (Department of Corrections), Series C,
5.25%, 6/01/28

 

 

2,605

 

 

2,429,397

 

East Side Union High School District, California, Santa
Clara County, GO (Election of 2002), Series D, 5%,
8/01/20 (d)

 

 

1,000

 

 

1,035,900

 

Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series A-3, 7.875%, 6/01/13 (e)

 

 

870

 

 

1,053,213

 

Poway, California, Unified School District, Special Tax
Bonds (Community Facilities District Number 6),
Series A, 6.125%, 9/01/33

 

 

1,750

 

 

1,542,485

 

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

 

 

550

 

 

555,164

 

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

 

 

2,525

 

 

755,909

 

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

 

 

3,780

 

 

3,454,429

 

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

 

 

 

 

 

 

 

5.50%, 7/01/17

 

 

1,820

 

 

1,282,063

 

5.55%, 7/01/18

 

 

1,945

 

 

1,288,679

 

5.60%, 7/01/19

 

 

2,070

 

 

1,279,115

 

Tracy, California, Area Public Facilities Financing Agency,
Special Tax Refunding Bonds (Community Facilities
District Number 87-1), Series H, 5.875%,
10/01/19 (a)

 

 

4,925

 

 

4,933,619

 

Tustin, California, Unified School District, Senior Lien
Special Tax Bonds (Community Facilities District
Number 97-1), Series A, 5%, 9/01/32 (h)

 

 

1,250

 

 

1,180,375

 

University of California Revenue Bonds, Series B,
4.75%, 5/15/38

 

 

4,095

 

 

3,762,977

 

 

 

 

 

 




 

 

 

 

 

 

35,087,901

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Colorado — 3.4%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, Revenue Refunding
Bonds (Poudre Valley Health Care), Series B,
5.25%, 3/01/36 (h)

 

$

735

 

$

693,605

 

Elk Valley, Colorado, Public Improvement Revenue
Bonds (Public Improvement Fee), Series A,
7.10%, 9/01/14

 

 

1,315

 

 

1,296,209

 

Platte River Power Authority, Colorado, Power Revenue
Bonds, Series HH, 5%, 6/01/28

 

 

1,105

 

 

1,143,012

 

Plaza Metropolitan District Number 1, Colorado, Tax
Allocation Revenue Bonds (Public Improvement
Fees), 8.125%, 12/01/25

 

 

860

 

 

660,910

 

University of Colorado, Enterprise System Revenue
Bonds, Series A, 5.375%, 6/01/38

 

 

920

 

 

951,446

 

 

 

 

 

 




 

 

 

 

 

 

4,745,182

 









Florida — 7.5%

 

 

 

 

 

 

 

Ballantrae, Florida, Community Development District,
Capital Improvement Revenue Bonds, 6%, 5/01/35

 

 

1,595

 

 

1,271,343

 

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

 

 

545

 

 

544,597

 

Greater Orlando Aviation Authority, Florida, Airport
Facilities Revenue Bonds (JetBlue Airways Corp.),
AMT, 6.50%, 11/15/36

 

 

1,515

 

 

898,471

 

Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT,
Series B, 7.125%, 4/01/30

 

 

1,380

 

 

708,865

 

Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (H. Lee Moffitt Cancer Center Project), Series A,
5.25%, 7/01/37

 

 

2,310

 

 

1,918,247

 

Miami-Dade County, Florida, Special Obligation Revenue
Bonds, Sub-Series A, 5.24%, 10/01/37 (a)(c)

 

 

1,765

 

 

193,497

 

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

 

 

1,665

 

 

1,064,168

 

Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional
Healthcare), 6%, 12/01/12 (e)

 

 

2,400

 

 

2,785,704

 

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

 

 

510

 

 

274,967

 

Preserve at Wilderness Lake, Florida, Community
Development District, Capital Improvement Bonds,
Series A, 5.90%, 5/01/34

 

 

1,215

 

 

801,450

 

 

 

 

 

 




 

 

 

 

 

 

10,461,309

 









Georgia — 3.5%

 

 

 

 

 

 

 

Atlanta, Georgia, Tax Allocation Refunding Bonds
(Atlantic Station Project) (i):

 

 

 

 

 

 

 

5%, 12/01/23

 

 

1,000

 

 

998,010

 

4.75%, 12/01/24

 

 

2,000

 

 

1,924,020

 

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

 

 

865

 

 

322,221

 

Private Colleges and Universities Authority, Georgia,
Revenue Refunding Bonds (Emory University Project),
Series C, 5%, 9/01/38

 

 

1,650

 

 

1,675,740

 

 

 

 

 

 




 

 

 

 

 

 

4,919,991

 









Idaho — 1.2%

 

 

 

 

 

 

 

Power County, Idaho, Industrial Development
Corporation, Solid Waste Disposal Revenue Bonds
(FMC Corporation Project), AMT, 6.45%, 8/01/32

 

 

2,000

 

 

1,725,300

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2009

33



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Illinois — 2.5%

 

 

 

 

 

 

 

Chicago, Illinois, Special Assessment Bonds (Lake
Shore East), 6.75%, 12/01/32

 

$

1,000

 

$

686,180

 

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

 

 

2,000

 

 

2,010,500

 

Illinois State Finance Authority Revenue Bonds, Series A:

 

 

 

 

 

 

 

(Landing At Plymouth Place Project), 6%, 5/15/25

 

 

500

 

 

369,155

 

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

 

 

720

 

 

436,183

 

 

 

 

 

 




 

 

 

 

 

 

3,502,018

 









Indiana — 0.4%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, Power Supply System
Revenue Bonds, Series B, 6%, 1/01/39

 

 

565

 

 

582,069

 









Louisiana — 4.0%

 

 

 

 

 

 

 

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

 

 

420

 

 

408,085

 

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

 

 

2,500

 

 

1,740,125

 

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

 

 

2,500

 

 

2,128,175

 

New Orleans, Louisiana, Financing Authority Revenue
Bonds (Xavier University of Louisiana Project),
5.30%, 6/01/12 (a)(e)

 

 

1,275

 

 

1,420,975

 

 

 

 

 

 




 

 

 

 

 

 

5,697,360

 









Maryland — 0.6%

 

 

 

 

 

 

 

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

 

 

1,050

 

 

797,170

 









Massachusetts — 3.7%

 

 

 

 

 

 

 

Massachusetts State Development Finance Agency
Revenue Bonds (Neville Communities Home),
Series A (l):

 

 

 

 

 

 

 

5.75%, 6/20/22

 

 

600

 

 

639,312

 

6%, 6/20/44

 

 

1,500

 

 

1,530,030

 

Massachusetts State, HFA, Housing Revenue Bonds,
AMT, Series A, 5.25%, 12/01/48

 

 

2,100

 

 

1,915,452

 

Massachusetts State, HFA, Housing Revenue Refunding
Bonds, AMT, Series F, 5.70%, 6/01/40

 

 

1,140

 

 

1,087,640

 

 

 

 

 

 




 

 

 

 

 

 

5,172,434

 









Michigan — 3.9%

 

 

 

 

 

 

 

Flint, Michigan, Hospital Building Authority, Revenue
Refunding Bonds (Hurley Medical Center), Series A,
6%, 7/01/20 (m)

 

 

1,100

 

 

880,924

 

Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds (Detroit Edison Company
Pollution Control Project), AMT, Series C, 5.65%,
9/01/29 (d)

 

 

5,000

 

 

4,492,550

 

 

 

 

 

 




 

 

 

 

 

 

5,373,474

 









Minnesota — 5.6%

 

 

 

 

 

 

 

Minneapolis, Minnesota, Community Development
Agency, Supported Development Revenue Refunding
Bonds (Common Bond), Series G-3, 5.35%,
12/01/11 (e)

 

 

1,680

 

 

1,856,988

 

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

 

 

1,540

 

 

1,602,509

 

Minnesota State Municipal Power Agency, Electric
Revenue Bonds, 5.25%, 10/01/21

 

 

4,220

 

 

4,389,855

 

 

 

 

 

 




 

 

 

 

 

 

7,849,352

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Mississippi — 2.2%

 

 

 

 

 

 

 

Mississippi Business Finance Corporation,
Mississippi, PCR, Refunding (System Energy
Resources Inc. Project):

 

 

 

 

 

 

 

5.875%, 4/01/22

 

$

2,000

 

$

1,826,440

 

5.90%, 5/01/22

 

 

500

 

 

457,530

 

University of Southern Mississippi Education Building
Corporation Revenue Bonds (Campus Facilities
Improvements Project), 5.375%, 9/01/36

 

 

700

 

 

714,140

 

 

 

 

 

 




 

 

 

 

 

 

2,998,110

 









Missouri — 1.1%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

694,750

 

Missouri State Development Finance Board,
Infrastructure Facilities Revenue Refunding Bonds
(Branson), Series A, 5.50%, 12/01/32

 

 

1,000

 

 

821,980

 

 

 

 

 

 




 

 

 

 

 

 

1,516,730

 









New Jersey — 7.7%

 

 

 

 

 

 

 

New Jersey EDA, Cigarette Tax Revenue Bonds:

 

 

 

 

 

 

 

5.75%, 6/15/29

 

 

4,050

 

 

2,990,803

 

5.50%, 6/15/31

 

 

1,890

 

 

1,322,773

 

New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT,
6.625%, 9/15/12

 

 

2,000

 

 

1,745,020

 

New Jersey State Turnpike Authority, Turnpike
Revenue Bonds:

 

 

 

 

 

 

 

Series C, 5%, 1/01/30 (h)

 

 

2,500

 

 

2,541,775

 

Series E, 5.25%, 1/01/40

 

 

2,130

 

 

2,141,076

 

 

 

 

 

 




 

 

 

 

 

 

10,741,447

 









New York — 11.0%

 

 

 

 

 

 

 

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

 

 

885

 

 

793,721

 

Long Island Power Authority, New York, Electric System
Revenue Refunding Bonds, Series A, 5.75%, 4/01/39

 

 

1,050

 

 

1,092,031

 

Metropolitan Transportation Authority, New York,
Dedicated Tax Fund Revenue Bonds, Series B,
5%, 11/15/34

 

 

1,270

 

 

1,232,535

 

New York City, New York, City IDA, Civic Facility Revenue
Bonds, Series C, 6.80%, 6/01/28

 

 

415

 

 

407,152

 

New York City, New York, City IDA, Special Facility
Revenue Bonds (Continental Airlines Inc. Project), AMT:

 

 

 

 

 

 

 

8%, 11/01/12

 

 

525

 

 

441,016

 

8.375%, 11/01/16

 

 

525

 

 

361,972

 

New York City, New York, City Municipal Water Finance
Authority, Second General Resolution, Water and
Sewer System Revenue Bonds, Series FF-2,
5.50%, 6/15/40

 

 

800

 

 

841,496

 

New York City, New York, City Transitional Finance
Authority, Building Aid Revenue Bonds, Series S-3,
5.25%, 1/15/39

 

 

3,300

 

 

3,231,657

 

New York City, New York, City Transitional Finance
Authority, Building Aid Revenue Refunding Bonds,
Series S-1, 4.50%, 1/15/38

 

 

500

 

 

432,070

 

Tobacco Settlement Financing Corporation of
New York Revenue Bonds:

 

 

 

 

 

 

 

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

 

 

1,100

 

 

1,123,089

 

Series A-1, 5.50%, 6/01/18

 

 

2,400

 

 

2,479,440

 

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

 

 

1,100

 

 

1,121,307

 

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

 

 

1,575

 

 

1,836,056

 

 

 

 

 

 




 

 

 

 

 

 

15,393,542

 










 

 

 

See Notes to Financial Statements.




34

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









North Carolina — 1.5%

 

 

 

 

 

 

 

North Carolina Eastern Municipal Power Agency, Power
System Revenue Bonds, Series D, 6.75%, 1/01/26

 

$

2,000

 

$

2,020,740

 









Ohio — 0.7%

 

 

 

 

 

 

 

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

 

 

1,565

 

 

966,700

 









Pennsylvania — 5.0%

 

 

 

 

 

 

 

Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds (National
Gypsum Company), AMT, Series A, 6.25%, 11/01/27

 

 

2,750

 

 

1,427,415

 

Pennsylvania Economic Development Financing
Authority, Water Facility Revenue Bonds (Pennsylvania —
American Water Company Project), 6.20%, 4/01/39

 

 

1,830

 

 

1,890,097

 

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

 

 

540

 

 

460,760

 

Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Bonds (Guthrie Healthcare System), Series B,
7.125%, 12/01/11 (e)

 

 

2,630

 

 

3,202,472

 

 

 

 

 

 




 

 

 

 

 

 

6,980,744

 









Puerto Rico — 1.8%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds,
Series N, 5.25%, 7/01/36 (i)

 

 

1,945

 

 

1,922,652

 

Puerto Rico Industrial, Medical and Environmental
Pollution Control Facilities Financing Authority, Special
Facilities Revenue Bonds (American Airlines Inc.),
Series A, 6.45%, 12/01/25

 

 

1,550

 

 

620,015

 

 

 

 

 

 




 

 

 

 

 

 

2,542,667

 









Rhode Island — 1.8%

 

 

 

 

 

 

 

Rhode Island State Health and Educational Building
Corporation, Hospital Financing Revenue Bonds
(Lifespan Obligation Group), 6.50%, 8/15/12 (e)

 

 

2,190

 

 

2,520,493

 









South Carolina — 1.7%

 

 

 

 

 

 

 

Medical University Hospital Authority, South Carolina,
Hospital Facilities Revenue Refunding Bonds, Series A,
6.375%, 8/15/12 (e)

 

 

2,080

 

 

2,415,358

 









South Dakota — 0.9%

 

 

 

 

 

 

 

South Dakota State Health and Educational Facilities
Revenue Bonds (Sanford Health), 5%, 11/01/40

 

 

1,350

 

 

1,180,508

 









Tennessee — 2.4%

 

 

 

 

 

 

 

Hardeman County, Tennessee, Correctional Facilities
Corporation Revenue Bonds, Series B,
7.375%, 8/01/17

 

 

2,200

 

 

1,877,590

 

Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Methodist Healthcare), 6.50%, 9/01/12 (e)

 

 

1,280

 

 

1,488,832

 

 

 

 

 

 




 

 

 

 

 

 

3,366,422

 









Texas — 11.3%

 

 

 

 

 

 

 

Brazos River Authority, Texas, PCR, Refunding (TXU
Energy Company Project), AMT, Series C,
5.75%, 5/01/36 (r)

 

 

1,930

 

 

1,138,700

 

Brazos River, Texas, Harbor Navigation District, Brazoria
County Environmental Revenue Refunding Bonds
(Dow Chemical Company Project), AMT, Series A-7,
6.625%, 5/15/33

 

 

2,500

 

 

1,974,950

 

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

 

 

1,380

 

 

1,462,979

 

Harris County, Texas, Toll Road Revenue Bonds, Senior
Lien, Series A, 5%, 8/15/38 (f)

 

 

3,360

 

 

3,319,008

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

Matagorda, Texas, Hospital District Revenue Bonds,
5%, 2/15/35 (n)

 

$

3,265

 

$

2,953,780

 

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

 

 

3,020

 

 

3,027,037

 

San Antonio Energy Acquisition Public Facilities
Corporation, Texas, Gas Supply Revenue Bonds:

 

 

 

 

 

 

 

5.50%, 8/01/23

 

 

1,130

 

 

966,523

 

5.50%, 8/01/24

 

 

1,035

 

 

884,511

 

 

 

 

 

 




 

 

 

 

 

 

15,727,488

 









U.S. Virgin Islands — 1.5%

 

 

 

 

 

 

 

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

 

 

2,680

 

 

2,101,897

 









Vermont — 0.6%

 

 

 

 

 

 

 

Vermont Educational and Health Buildings Financing
Agency, Revenue Bonds (Developmental and Mental
Health), Series A, 6.50%, 6/15/32

 

 

1,000

 

 

770,970

 









Virginia — 5.1%

 

 

 

 

 

 

 

Chesterfield County, Virginia, IDA, PCR (Virginia Electric
and Power Company), Series A, 5.875%, 6/01/17

 

 

425

 

 

439,658

 

Fairfax County, Virginia, EDA, Resource Recovery
Revenue Refunding Bonds, AMT, Series A,
6.10%, 2/01/11 (g)

 

 

2,250

 

 

2,332,485

 

Tobacco Settlement Financing Corporation of Virginia,
Asset-Backed Revenue Bonds, 5.625%, 6/01/15 (e)

 

 

930

 

 

1,073,639

 

Virginia State, HDA, Revenue Bonds, AMT, Series D,
6%, 4/01/24

 

 

3,200

 

 

3,231,136

 

 

 

 

 

 




 

 

 

 

 

 

7,076,918

 









Washington — 0.6%

 

 

 

 

 

 

 

Seattle, Washington, Housing Authority Revenue Bonds
(Replacement Housing Project), 6.125%, 12/01/32

 

 

975

 

 

765,258

 









Wisconsin — 3.7%

 

 

 

 

 

 

 

Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (SynergyHealth Inc.),
6%, 11/15/32

 

 

1,360

 

 

1,369,982

 

Wisconsin State, General Fund Annual Appropriation
Bonds, Series A, 6%, 5/01/36

 

 

3,620

 

 

3,814,792

 

 

 

 

 

 




 

 

 

 

 

 

5,184,774

 









Total Municipal Bonds — 130.1%

 

 

 

 

 

181,275,296

 









 

 

 

 

 

 

 

 









Municipal Bonds Transferred to
Tender Option Bond Trusts (m)

 

 

 

 

 

 

 









California — 4.0%

 

 

 

 

 

 

 

Sequoia, California, Unified High School District, GO,
Refunding, Series B, 5.50%, 7/01/35 (h)

 

 

5,519

 

 

5,596,785

 









Colorado — 2.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority Revenue Bonds
(Catholic Health) (h):

 

 

 

 

 

 

 

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

 

 

1,870

 

 

1,792,769

 

Series C-7, 5%, 9/01/36

 

 

1,200

 

 

1,151,592

 

 

 

 

 

 




 

 

 

 

 

 

2,944,361

 









Connecticut — 3.4%

 

 

 

 

 

 

 

Connecticut State Health and Educational Facilities
Authority Revenue Bonds (Yale University):

 

 

 

 

 

 

 

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

 

 

2,300

 

 

2,364,285

 

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

 

 

2,370

 

 

2,419,533

 

 

 

 

 

 




 

 

 

 

 

 

4,783,818

 










 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2009

35



 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (o)

 

Par
(000)

 

Value

 









Massachusetts — 2.2%

 

 

 

 

 

 

 

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

 

$

2,999

 

$

3,055,885

 









New York — 2.4%

 

 

 

 

 

 

 

New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5.25%,
10/15/27 (g)

 

 

3,200

 

 

3,336,960

 









Tennessee — 1.8%

 

 

 

 

 

 

 

Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Saint Jude Children’s Research Hospital),
5%, 7/01/31

 

 

2,500

 

 

2,499,825

 









Texas — 6.6%

 

 

 

 

 

 

 

Harris County, Texas, Toll Road Revenue Refunding
Bonds, Senior Lien, Series A, 5.25%, 8/15/35 (h)

 

 

8,730

 

 

9,247,514

 









Virginia — 9.0%

 

 

 

 

 

 

 

University of Virginia, Revenue Refunding Bonds,
5%, 6/01/40

 

 

2,730

 

 

2,818,425

 

Virginia State, HDA, Commonwealth Mortgage Revenue
Bonds, Series H, Sub-Series H-1 (a):

 

 

 

 

 

 

 

5.35%, 7/01/31

 

 

1,725

 

 

1,733,970

 

5.375%, 7/01/36

 

 

7,900

 

 

7,921,014

 

 

 

 

 

 




 

 

 

 

 

 

12,473,409

 









Washington — 1.0%

 

 

 

 

 

 

 

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

 

 

1,365

 

 

1,376,956

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 32.5%

 

 

 

 

 

45,315,513

 









Total Long-Term Investments
(Cost — $242,212,178) — 162.6%

 

 

 

 

 

226,590,809

 









 

 

 

 

 

 

 

 









Short-Term Securities

 

Shares

 

 

 

 









Money Market Fund — 0.1%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.72% (p)(q)

 

 

112,826

 

 

112,826

 









Total Short-Term Securities
(Cost — $112,826) — 0.1%

 

 

 

 

 

112,826

 









Total Investments
(Cost — $242,325,004*) — 162.7%

 

 

 

 

 

226,703,635

 

Liabilities in Excess of Other Assets — (1.5)%

 

 

 

 

 

(2,083,121

)

Liability for Trust Certificates, Including

 

 

 

 

 

 

 

Interest Expense and Fees Payable — (17.4)%

 

 

 

 

 

(24,239,538

)

Preferred Shares, at Redemption Value — (43.8)%

 

 

 

 

 

(61,003,971

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

139,377,005

 

 

 

 

 

 




 


 

 

*

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

 

$

217,779,303

 

 

 




Gross unrealized appreciation

 

$

6,276,188

 

Gross unrealized depreciation

 

 

(21,489,929

)

 

 




Net unrealized depreciation

 

$

(15,213,741

)

 

 





 

 

(a)

NPFGC Insured.

 

 

(b)

FGIC Insured.

 

 

(c)

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

 

 

(d)

XL Capital Insured.

 

 

(e)

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.

 

 

(f)

When-issued security.

 

 

(g)

AMBAC Insured.

 

 

(h)

FSA Insured.

 

 

(i)

Assured Guaranty Insured.

 

 

(j)

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

 

 

(k)

Non-income producing security.

 

 

(l)

GNMA Collateralized.

 

 

(m)

ACA Insured.

 

 

(n)

FHA Insured.

 

 

(o)

Securities represent bonds transferred to a tender option bond trust established in exchange for which the Fund acquired the residual interest certificates. These securities serve as a 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.

 

 

(p)

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

 

 

101,105

 

$

27,300

 










 

 

 

(q)

Represents the current yield as of report date.

 

 

 

(r)

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

 

 

 

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

 

 

 

 

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

 

$

112,826

 

Level 2

 

 

226,590,809

 

Level 3

 

 

 





Total

 

$

226,703,635

 

 

 




 

 

 

See Notes to Financial Statements.




36

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments April 30, 2009

BlackRock MuniHoldings Insured Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Alabama — 0.9%

 

 

 

 

 

 

 

Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 5.50%, 1/01/22

 

$

2,170

 

$

1,347,310

 









Arkansas — 3.9%

 

 

 

 

 

 

 

Arkansas State Development Finance Authority, M/F
Mortgage Revenue Refunding Bonds, Series C,
5.35%, 12/01/35 (a)(b)

 

 

6,220

 

 

6,233,746

 









California — 17.3%

 

 

 

 

 

 

 

California State Public Works Board, Lease Revenue
Bonds (Department of General Services — Capitol
East End Complex), Series A, 5%, 12/01/27 (c)

 

 

2,000

 

 

1,823,600

 

East Side Union High School District, California, Santa
Clara County, GO (Election of 2002), Series B,
5%, 8/01/27 (a)(d)

 

 

1,800

 

 

1,782,864

 

Eastern Municipal Water District, California, Water and
Sewer, COP, Series H, 5%, 7/01/35

 

 

900

 

 

858,276

 

Modesto, California, Schools Infrastructure Financing
Agency, Special Tax Bonds, 5.50%, 9/01/36 (c)

 

 

2,565

 

 

2,104,223

 

Oceanside, California, Unified School District, GO,
Series A, 5.25%, 8/01/33

 

 

1,825

 

 

1,830,146

 

San Pablo, California, Joint Powers Financing Authority,
Tax Allocation Revenue Refunding Bonds (a)(e):

 

 

 

 

 

 

 

5.66%, 12/01/24

 

 

2,635

 

 

1,008,335

 

5.66%, 12/01/25

 

 

2,355

 

 

829,667

 

5.66%, 12/01/26

 

 

2,355

 

 

769,850

 

Santa Ana, California, Unified School District, GO,
5%, 8/01/32 (a)

 

 

4,265

 

 

4,072,819

 

Stockton, California, Public Financing Revenue Bonds
(Redevelopment Projects), Series A, 5.25%,
9/01/31 (f)

 

 

2,140

 

 

1,617,990

 

Tustin, California, Unified School District, Senior Lien
Special Tax Bonds (Community Facilities District
Number 97-1), Series A (g):

 

 

 

 

 

 

 

5%, 9/01/32

 

 

1,390

 

 

1,312,577

 

5%, 9/01/38

 

 

2,800

 

 

2,581,796

 

Vista, California, COP (Community Projects), 5%,
5/01/37 (a)

 

 

3,600

 

 

3,114,612

 

West Contra Costa, California, Unified School District,
GO, Series C, 5%, 8/01/21 (a)(d)

 

 

3,480

 

 

3,556,177

 

 

 

 

 

 




 

 

 

 

 

 

27,262,932

 









Colorado — 7.2%

 

 

 

 

 

 

 

Aurora, Colorado, COP, 5.75%, 12/01/10 (c)(h)

 

 

10,620

 

 

11,450,803

 









District of Columbia — 0.2%

 

 

 

 

 

 

 

District of Columbia, Deed Tax Revenue Bonds (Housing
Production Trust Fund — New Communities Project),
Series A, 5%, 6/01/32 (a)

 

 

400

 

 

375,000

 









Florida — 22.4%

 

 

 

 

 

 

 

Broward County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds, AMT, Series E, 5.90%,
10/01/39 (i)(j)(k)

 

 

1,470

 

 

1,499,812

 

Jacksonville, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Baptist Medical Center Project),
5%, 8/15/37 (g)

 

 

4,515

 

 

4,174,388

 

Jacksonville, Florida, Port Authority Revenue Bonds, AMT,
6%, 11/01/38 (l)

 

 

3,750

 

 

3,754,687

 

Lee Memorial Health System, Florida, Hospital Revenue
Bonds, Series A, 5%, 4/01/32 (c)

 

 

1,925

 

 

1,605,200

 

Miami-Dade County, Florida, Aviation Revenue Refunding
Bonds (Miami International Airport), AMT, Series A,
5.50%, 10/01/41 (g)

 

 

3,900

 

 

3,631,524

 

Miami-Dade County, Florida, GO (Building Better
Communities Program), Series B-1, 6%, 7/01/38

 

 

7,500

 

 

7,772,025

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Florida (concluded)

 

 

 

 

 

 

 

Miami-Dade County, Florida, Special Obligation Revenue
Bonds, Sub-Series A, 5.24%, 10/01/37 (a)(e)

 

$

2,225

 

$

243,927

 

Orange County, Florida, School Board, COP, Series A,
5.50%, 8/01/34 (l)

 

 

7,395

 

 

7,439,222

 

Orlando, Florida, Senior Tourist Development Tax
Revenue Bonds (6th Cent Contract Payments),
Series A, 5.25%, 11/01/38 (l)

 

 

2,000

 

 

2,015,000

 

Pasco County, Florida, Half-Cent Sales Tax Revenue
Bonds, 5.125%, 12/01/28 (c)

 

 

3,850

 

 

3,333,138

 

 

 

 

 

 




 

 

 

 

 

 

35,468,923

 









Illinois — 10.4%

 

 

 

 

 

 

 

Chicago, Illinois, O’Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT,
Series A, 5.75%, 1/01/19 (a)

 

 

1,875

 

 

1,883,100

 

Chicago, Illinois, O’Hare International Airport, Revenue
Refunding Bonds, Series A, 5%, 1/01/33 (g)

 

 

8,000

 

 

7,709,200

 

Chicago, Illinois, Transit Authority, Capital Grant Receipts
Revenue Bonds (Federal Transit Administration
Section 5309 Formula Funds), Series A, 6%,
6/01/26 (l)

 

 

2,000

 

 

2,233,060

 

Illinois State, GO, First Series, 6%, 1/01/18 (a)(d)

 

 

4,500

 

 

4,636,125

 

Lake, Cook, Kane and McHenry Counties, Illinois,
Community Unit School District Number 220, GO,
5.75%, 12/01/19 (a)(d)

 

 

45

 

 

47,258

 

 

 

 

 

 




 

 

 

 

 

 

16,508,743

 









Indiana — 4.0%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, Power Supply System
Revenue Bonds, Series A (a):

 

 

 

 

 

 

 

5%, 1/01/37

 

 

835

 

 

783,831

 

5%, 1/01/42

 

 

6,000

 

 

5,563,860

 

 

 

 

 

 




 

 

 

 

 

 

6,347,691

 









Kentucky — 2.0%

 

 

 

 

 

 

 

Kentucky Economic Development Financing Authority,
Louisville Arena Project Revenue Bonds (Louisville
Arena Authority, Inc.), Sub-Series A-1, 6%,
12/01/38 (l)

 

 

650

 

 

669,682

 

Kentucky State Property and Buildings Commission,
Revenue Refunding Bonds (Project Number 93) (l):

 

 

 

 

 

 

 

5.25%, 2/01/27

 

 

1,400

 

 

1,459,584

 

5.25%, 2/01/29

 

 

1,000

 

 

1,030,710

 

 

 

 

 

 




 

 

 

 

 

 

3,159,976

 









Louisiana — 1.4%

 

 

 

 

 

 

 

Louisiana State Citizens Property Insurance Corporation,
Assessment Revenue Bonds, Series C-3, 6.125%,
6/01/25 (l)

 

 

2,055

 

 

2,127,644

 









Massachusetts — 1.7%

 

 

 

 

 

 

 

Massachusetts State, HFA, Housing Development
Revenue Refunding Bonds, AMT, Series A, 5.15%,
6/01/11 (a)

 

 

315

 

 

318,408

 

Massachusetts State, HFA, Rental Housing Mortgage
Revenue Bonds, AMT, Series C, 5.50%, 7/01/32 (g)

 

 

2,440

 

 

2,374,388

 

 

 

 

 

 




 

 

 

 

 

 

2,692,796

 









Michigan — 10.4%

 

 

 

 

 

 

 

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

 

 

3,240

 

 

3,320,903

 

Detroit, Michigan, Sewage Disposal System, Senior Lien
Revenue Refunding Bonds, Series C-2, 5.25%,
7/01/29 (d)(m)

 

 

2,910

 

 

2,930,836

 

Detroit, Michigan, Water Supply System, Revenue
Refunding Bonds, Second Lien, Series C, 5.75%,
7/01/27 (d)(m)

 

 

1,580

 

 

1,692,591

 


 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2009

37



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series A, 5.50%, 6/01/30

 

$

2,000

 

$

1,741,060

 

Series B, 5.65%, 9/01/29

 

 

1,500

 

 

1,430,205

 

Series C, 5.65%, 9/01/29

 

 

3,500

 

 

3,144,785

 

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

 

 

1,910

 

 

2,125,372

 

 

 

 

 

 




 

 

 

 

 

 

16,385,752

 









Minnesota — 3.6%

 

 

 

 

 

 

 

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

 

 

1,325

 

 

1,436,644

 

Sauk Rapids, Minnesota, Independent School District
Number 47, GO, Series A, 5.65%, 2/01/19 (a)

 

 

4,015

 

 

4,290,268

 

 

 

 

 

 




 

 

 

 

 

 

5,726,912

 









Missouri — 1.3%

 

 

 

 

 

 

 

Cape Girardeau, Missouri, School District Number 063,
GO (Missouri Direct Deposit Program), 5.50%,
3/01/18 (d)

 

 

2,000

 

 

2,069,660

 









Montana — 4.6%

 

 

 

 

 

 

 

Mehlville, Montana, School District Number R-9, COP,
Series A (g):

 

 

 

 

 

 

 

5.50%, 3/01/11 (h)

 

 

5,510

 

 

5,962,150

 

5.50%, 3/01/14

 

 

360

 

 

381,388

 

5.50%, 3/01/15

 

 

405

 

 

429,061

 

5.50%, 3/01/16

 

 

215

 

 

227,773

 

5.50%, 3/01/17

 

 

280

 

 

296,635

 

 

 

 

 

 




 

 

 

 

 

 

7,297,007

 









Nevada — 4.2%

 

 

 

 

 

 

 

Clark County, Nevada, Airport Revenue Bonds (Jet
Aviation Fuel Tax), AMT, Series C, 5.375%, 7/01/20 (c)

 

 

1,000

 

 

974,540

 

Clark County, Nevada, Passenger Facility Charge
Revenue Bonds (Las Vegas McCarran International),
AMT, Series A-1, 5%, 7/01/23 (c)(g)

 

 

1,750

 

 

1,686,195

 

Clark County, Nevada, Water Reclamation District, GO,
Series B, 5.50%, 7/01/29

 

 

3,750

 

 

3,919,088

 

 

 

 

 

 




 

 

 

 

 

 

6,579,823

 









New Jersey — 7.9%

 

 

 

 

 

 

 

New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5.25%, 7/01/33 (a)

 

 

6,700

 

 

6,681,307

 

New Jersey Health Care Facilities Financing Authority
Revenue Bonds (Virtua Health), 5.50%, 7/01/38

 

 

2,100

 

 

2,060,940

 

New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds, Series A,
5.625%, 12/15/28 (l)

 

 

3,500

 

 

3,695,405

 

 

 

 

 

 




 

 

 

 

 

 

12,437,652

 









New York — 6.3%

 

 

 

 

 

 

 

New York City, New York, City Transitional Finance
Authority, Building Aid Revenue Bonds, Series S-3,
5.25%, 1/15/39

 

 

1,400

 

 

1,371,006

 

New York City, New York, GO, Series E, 5%, 11/01/17 (g)

 

 

4,000

 

 

4,266,000

 

New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5.25%,
10/15/27 (c)

 

 

4,095

 

 

4,270,266

 

 

 

 

 

 




 

 

 

 

 

 

9,907,272

 









Oregon — 0.9%

 

 

 

 

 

 

 

Portland, Oregon, Urban Renewal and Redevelopment
Tax Allocation Bonds (Oregon Convention Center),
Series A, 5.75%, 6/15/15 (c)

 

 

1,400

 

 

1,453,788

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 


Rhode Island — 3.6%

 

 

 

 

 

 

 

Providence, Rhode Island, Redevelopment Agency
Revenue Refunding Bonds (Public Safety and
Municipal Buildings), Series A, 5.75%,
4/01/10 (c)(h)

 

$

5,000

 

$

5,286,400

 

Rhode Island State Health and Educational Building
Corporation Revenue Bonds (Rhode Island School
of Design), Series D, 5.50%, 8/15/31 (n)

 

 

380

 

 

380,312

 

 

 

 

 

 




 

 

 

 

 

 

5,666,712

 









Texas — 16.3%

 

 

 

 

 

 

 

Dallas, Texas, Civic Center Revenue Refunding and
Improvement Bonds, 5.25%, 8/15/38 (l)

 

 

1,250

 

 

1,254,825

 

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

 

 

600

 

 

636,078

 

Houston, Texas, Combined Utility System, First Lien
Revenue Refunding Bonds, Series A, 6%,
11/15/35 (l)

 

 

4,000

 

 

4,257,400

 

North Texas Tollway Authority, System Revenue
Refunding Bonds (a):

 

 

 

 

 

 

 

First Tier, 5.75%, 1/01/40

 

 

6,710

 

 

6,732,076

 

First Tier, Series B, 5.75%, 1/01/40

 

 

6,275

 

 

6,295,645

 

Series A, 5.625%, 1/01/33

 

 

6,585

 

 

6,591,124

 

 

 

 

 

 




 

 

 

 

 

 

25,767,148

 









Virginia — 1.1%

 

 

 

 

 

 

 

Virginia State Public School Authority, Special Obligation
School Financing Bonds (Fluvanna County),
6.50%, 12/01/35

 

 

1,500

 

 

1,690,335

 









Washington — 2.5%

 

 

 

 

 

 

 

Chelan County, Washington, Public Utility District
Number 001, Consolidated Revenue Bonds (Chelan
Hydro System), AMT, Series A, 5.45%, 7/01/37 (c)

 

 

2,310

 

 

2,063,546

 

Snohomish County, Washington, Public Utility District
Number 001, Electric Revenue Bonds, 5.50%,
12/01/22 (g)

 

 

1,810

 

 

1,907,215

 

 

 

 

 

 




 

 

 

 

 

 

3,970,761

 









Total Municipal Bonds — 134.1%

 

 

 

 

 

211,928,386

 









 

 

 

 

 

 

 

 









Municipal Bonds Transferred to
Tender Option Bond Trusts (o)

 

 

 

 

 

 

 


California — 2.8%

 

 

 

 

 

 

 

San Jose, California, GO (Libraries, Parks and Public
Safety Projects), 5%, 9/01/30 (a)

 

 

1,258

 

 

1,262,264

 

Sequoia, California, Unified High School District, GO,
Refunding, Series B, 5.50%, 7/01/35 (g)

 

 

3,149

 

 

3,193,818

 

 

 

 

 

 




 

 

 

 

 

 

4,456,082

 









Colorado — 3.4%

 

 

 

 

 

 

 

Colorado Health Facilities Authority Revenue Bonds
(Catholic Health), Series C-3, 5.10%, 10/01/41 (g)

 

 

5,610

 

 

5,378,307

 









District of Columbia — 0.7%

 

 

 

 

 

 

 

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

 

 

1,040

 

 

1,122,351

 









Florida — 4.3%

 

 

 

 

 

 

 

Saint Petersburg, Florida, Public Utilities Revenue
Refunding Bonds, 5%, 10/01/35 (a)

 

 

4,302

 

 

4,125,433

 

Lee County, Florida, HFA, S/F Mortgage Revenue Bonds
(Multi-County Program), AMT, Series A-2, 6%,
9/01/40 (i)(j)(k)

 

 

2,445

 

 

2,633,192

 

 

 

 

 

 




 

 

 

 

 

 

6,758,625

 










 

 

 

See Notes to Financial Statements.




38

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Insured Fund, Inc. (MUS)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (o)

 

Par
(000)

 

Value

 









Georgia — 2.6%

 

 

 

 

 

 

 

Augusta, Georgia, Water and Sewer Revenue Bonds,
5.25%, 10/01/34 (g)

 

$

4,000

 

$

4,063,840

 









Illinois — 1.6%

 

 

 

 

 

 

 

Chicago, Illinois, Water Revenue Refunding Bonds,
Second Lien, 5.25%, 11/01/33 (g)

 

 

2,509

 

 

2,537,258

 









Massachusetts — 7.3%

 

 

 

 

 

 

 

Massachusetts Bay Transportation Authority, Sales Tax
Revenue Refunding Bonds, Senior Series A,
5%, 7/01/35

 

 

3,375

 

 

3,378,172

 

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

 

 

8,008

 

 

8,159,213

 

 

 

 

 

 




 

 

 

 

 

 

11,537,385

 









Nevada — 3.4%

 

 

 

 

 

 

 

Clark County, Nevada, Water Reclamation District,
Limited Tax, 6%, 7/01/38

 

 

5,000

 

 

5,344,800

 









Virginia — 0.9.%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,507,800

 









Washington — 2.6%

 

 

 

 

 

 

 

Bellevue, Washington, GO, Refunding, 5.50%,
12/01/39 (a)

 

 

4,002

 

 

4,123,998

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 29.6%

 

 

 

 

 

46,830,446

 









Total Long-Term Investments
(Cost — $263,940,314) — 163.7%

 

 

 

 

 

258,758,832

 









 

 

 

 

 

 

 

 









Short-Term Securities

 

 

 

 

 

 

 









California — 3.2%

 

 

 

 

 

 

 

Los Angeles County, California, Metropolitan
Transportation Authority, Sales Tax Revenue Refunding
Bonds, Proposition C, VRDN, Second Senior Series A,
6%, 5/07/09 (a)(p)

 

 

5,000

 

 

5,000,000

 









 

 

 

 

 

 

 

 

 

Shares

 

 

 

 









Money Market Fund — 9.7%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.72% (q)(r)

 

 

15,326,703

 

 

15,326,703

 









Total Short-Term Securities
(Cost — $20,326,703) — 12.9%

 

 

 

 

 

20,326,703

 









Total Investments (Cost — $284,267,017*) — 176.6%

 

 

 

 

 

279,085,535

 

Liabilities in Excess of Other Assets — (0.2)%

 

 

 

 

 

(321,958

)

Liability for Trust Certificates, Including

 

 

 

 

 

 

 

Interest Expense Payable and Fees Payable — (16.8)%

 

 

 

 

 

(26,492,336

)

Preferred Shares, at Redemption Value — (59.6)%

 

 

 

 

 

(94,210,220

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

158,061,021

 

 

 

 

 

 




 










 

 

*

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

 

$

257,689,046

 

 

 




Gross unrealized appreciation

 

$

7,114,132

 

Gross unrealized depreciation

 

 

(12,107,085

)

 

 




Net unrealized depreciation

 

$

(4,992,953

)

 

 





 

 

(a)

NPFGC Insured.

 

 

(b)

FHA Insured.

 

 

(c)

AMBAC Insured.

 

 

(d)

FGIC Insured.

 

 

(e)

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

 

 

(f)

Radian Insured.

 

 

(g)

FSA Insured.

 

 

(h)

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.

 

 

(i)

FHLMC Collateralized.

 

 

(j)

FNMA Collateralized.

 

 

(k)

GNMA Collateralized.

 

 

(l)

Assured Guaranty Insured.

 

 

(m)

BHAC Insured.

 

 

(n)

XL Capital Insured.

 

 

(o)

Securities represent bonds transferred to a tender option bond trust established in exchange for which the Fund acquired the residual interest certificates. These securities serve as a 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.

 

 

(p)

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.

 

 

(q)

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

 

 

15,305,882

 

$

99,242

 










 

 

 

(r)

Represents the current yield as of report date.

 

 

 

Effective May 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

 





Level 1

 

$

15,326,703

 

Level 2

 

 

263,758,832

 

Level 3

 

 

 






Total

 

$

279,085,535

 

 

 





 

 

 

See Notes to Financial Statements.

 

 




ANNUAL REPORT

APRIL 30, 2009

39



 

 


 

Schedule of Investments April 30, 2009

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 2.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.50%, 1/01/21

 

$

5,500

 

$

3,415,335

 

5.25%, 1/01/23

 

 

6,500

 

 

4,035,200

 

Tuscaloosa, Alabama, Special Care Facilities Financing
Authority, Residential Care Facility Revenue Bonds
(Capstone Village, Inc. Project), Series A, 5.625%,
8/01/25 (a)(b)

 

 

6,600

 

 

3,148,464

 

 

 

 

 

 




 

 

 

 

 

 

10,598,999

 









Arizona — 2.5%

 

 

 

 

 

 

 

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

 

 

2,820

 

 

2,118,130

 

Navajo County, Arizona, IDA, IDR (Stone Container
Corporation Project), AMT, 7.20%, 6/01/27 (a)(b)

 

 

1,500

 

 

285,000

 

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

 

 

 

 

 

 

 

Series C, 6.70%, 7/01/21

 

 

980

 

 

764,488

 

Series K, 6.375%, 7/01/13 (c)

 

 

820

 

 

972,561

 

Series K, 6.375%, 7/01/31

 

 

930

 

 

621,575

 

Salt River Project, Arizona, Agriculture Improvement and
Power District, Electric System Revenue Bonds,
Series A, 5%, 1/01/25

 

 

4,000

 

 

4,245,240

 

Vistancia Community Facilities District, Arizona, GO, 5%,
7/15/14

 

 

3,630

 

 

3,406,029

 

 

 

 

 

 




 

 

 

 

 

 

12,413,023

 









California — 16.4%

 

 

 

 

 

 

 

Antelope Valley, California, Health Care District Revenue
Bonds, Series A, 5.25%, 9/01/17

 

 

8,000

 

 

6,809,600

 

California Pollution Control Financing Authority, PCR,
Refunding (Pacific Gas & Electric), AMT, Series A,
5.35%, 12/01/16 (d)

 

 

17,730

 

 

17,424,867

 

California Pollution Control Financing Authority, Solid
Waste Disposal Revenue Bonds, AMT:

 

 

 

 

 

 

 

(Republic Services, Inc. Project), Series B,
5.25%, 6/01/23

 

 

750

 

 

673,020

 

(Waste Management, Inc. Project),
Series A-2, 5.40%, 4/01/25

 

 

1,240

 

 

1,096,892

 

California State Department of Water Resources, Power
Supply Revenue Bonds, Series A, 5.375%, 5/01/12 (c)

 

 

5,000

 

 

5,650,950

 

California State, GO:

 

 

 

 

 

 

 

5.50%, 4/01/14 (c)

 

 

14,795

 

 

17,296,243

 

5.50%, 4/01/28

 

 

15

 

 

15,115

 

California State, GO, Refunding, 5.25%, 2/01/27 (d)

 

 

5,000

 

 

4,993,850

 

California State Public Works Board, Lease Revenue
Bonds (Department of Corrections), Series C,
5.50%, 6/01/20

 

 

10,000

 

 

10,199,300

 

California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6%, 10/01/23

 

 

2,500

 

 

2,537,250

 

Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Refunding
    Bonds, Senior Series A-1, 5%, 6/01/15

 

 

5,000

 

 

4,608,700

 

Los Angeles, California, Regional Airports Improvement
Corporation, Facilities Lease Revenue Refunding
Bonds (LAXFUEL Corporation — Los Angeles
International Airport), AMT, 5.50%, 1/01/32 (e)

 

 

1,435

 

 

1,321,621

 

Rowland, California, Unified School District, GO (Election
of 2000), Series B, 5.25%, 8/01/27 (f)

 

 

1,515

 

 

1,538,498

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 

Sacramento, California, Special Tax (North Natomas
Community Facilities), Series 4-C:

 

 

 

 

 

 

 

5.60%, 9/01/20

 

$

585

 

$

500,976

 

5.75%, 9/01/22

 

 

1,715

 

 

1,437,787

 

5.90%, 9/01/23

 

 

500

 

 

421,855

 

6%, 9/01/28

 

 

2,990

 

 

2,426,206

 

Tustin, California, Unified School District, Senior Lien
Special Tax Bonds (Community Facilities District
Number 97-1), Series A, 5%, 9/01/32 (f)

 

 

2,610

 

 

2,464,623

 

 

 

 

 

 




 

 

 

 

 

 

81,417,353

 









Colorado — 2.7%

 

 

 

 

 

 

 

Adams County, Colorado, COP, 4.50%, 12/01/22

 

 

2,555

 

 

2,543,605

 

Elk Valley, Colorado, Public Improvement Revenue Bonds
(Public Improvement Fee), Series A, 7.10%, 9/01/14

 

 

700

 

 

689,997

 

Montrose, Colorado, Memorial Hospital, Revenue Bonds,
6.375%, 12/01/23

 

 

2,250

 

 

2,051,753

 

Plaza Metropolitan District Number 1, Colorado, Tax
Allocation Revenue Bonds (Public Improvement Fees),
7.50%, 12/01/15

 

 

7,500

 

 

6,991,275

 

Southlands Metropolitan District Number 1, Colorado,
GO, 6.75%, 12/01/14 (c)

 

 

1,000

 

 

1,178,300

 

 

 

 

 

 




 

 

 

 

 

 

13,454,930

 









Connecticut — 0.2%

 

 

 

 

 

 

 

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

 

 

1,160

 

 

1,025,312

 









Florida — 5.9%

 

 

 

 

 

 

 

Harbor Bay, Florida, Community Development District,
Capital Improvement Special Assessment Bonds,
6.75%, 5/01/34

 

 

2,820

 

 

1,880,545

 

Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Refunding Bonds (Adventist Health
System), Series G, 5.125%, 11/15/16 (c)

 

 

35

 

 

40,964

 

Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
5.75%, 10/01/19 (d)(g)

 

 

5,500

 

 

5,520,845

 

Miami-Dade County, Florida, Water and Sewer Revenue
Refunding Bonds, Series C, 5%, 10/01/23 (h)

 

 

9,000

 

 

9,433,620

 

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

 

 

 

 

 

 

 

Series A, 6%, 5/01/24

 

 

3,330

 

 

2,374,690

 

Series B, 6.50%, 5/01/37

 

 

1,950

 

 

1,290,061

 

Orlando, Florida, Urban Community Development
District, Capital Improvement Special Assessment
Bonds, 6%, 5/01/20

 

 

755

 

 

590,878

 

Panther Trace Community Development District II,
Florida, Special Assessment Revenue Bonds,
5.125%, 11/01/13

 

 

2,235

 

 

1,404,161

 

Portofino Shores, Florida, Community Development
District, Special Assessment Bonds, Series A,
6.40%, 5/01/34

 

 

1,085

 

 

881,682

 

South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital Inc.), 6.625%,
10/01/23

 

 

2,390

 

 

2,189,718

 

Sterling Hill Community Development District, Florida,
Capital Improvement Revenue Refunding Bonds,
Series B, 5.50%, 11/01/10

 

 

170

 

 

149,190

 

University of Florida Research Foundation Inc., Capital
Improvement Revenue Bonds, 5.125%, 9/01/33 (e)

 

 

4,000

 

 

3,669,440

 

 

 

 

 

 




 

 

 

 

 

 

29,425,794

 










 

 

 

See Notes to Financial Statements.




40

ANNUAL REPORT

APRIL 30, 2009




 

 


 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Guam — 1.0%

 

 

 

 

 

 

 

Commonwealth of the Northern Mariana Islands, Guam,
GO, Series A:

 

 

 

 

 

 

 

6.75%, 10/01/13 (c)

 

$

4,000

 

$

4,755,880

 

6.75%, 10/01/33

 

 

250

 

 

197,730

 

 

 

 

 

 




 

 

 

 

 

 

4,953,610

 









Idaho — 0.8%

 

 

 

 

 

 

 

Boise City, Idaho, COP, AMT, 5.50%, 9/01/25(d)(g)

 

 

4,000

 

 

3,829,320

 

Idaho Housing and Finance Association, S/F Mortgage
Revenue Bonds, AMT, Series F-2, 5.85%, 7/01/15 (i)

 

 

255

 

 

262,956

 

 

 

 

 

 




 

 

 

 

 

 

4,092,276

 









Illinois — 7.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.75%, 1/01/23 (f)

 

 

8,130

 

 

8,248,698

 

6%, 1/01/29 (j)

 

 

2,510

 

 

2,458,721

 

Chicago, Illinois, O’Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT,
Series A-2, 5.75%, 1/01/19 (f)

 

 

2,550

 

 

2,591,437

 

Du Page and Will Counties, Illinois, Community School
District Number 204 (Indian Prairie), GO, 5.25%,
12/30/22 (d)(g)

 

 

8,650

 

 

9,358,954

 

Hodgkins, Illinois, Environmental Improvement Revenue
Bonds (Metro Biosolids Management LLC Project),
AMT, 5.90%, 11/01/17

 

 

6,000

 

 

5,925,180

 

Illinois, Development Finance Authority Revenue Bonds
(Community Rehabilitation Providers Facilities),
Series A, 6.625%, 7/01/32

 

 

6,930

 

 

5,963,750

 

Illinois State Finance Authority Revenue Bonds
(Landing At Plymouth Place Project), Series A,
6%, 5/15/25

 

 

1,800

 

 

1,328,958

 

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

 

 

1,580

 

 

1,212,982

 

 

 

 

 

 




 

 

 

 

 

 

37,088,680

 









Indiana — 0.4%

 

 

 

 

 

 

 

Jasper County, Indiana, PCR, Refunding (Northern
Indiana Public Service), Series C, 5.85%, 4/01/19 (d)

 

 

2,000

 

 

1,955,240

 









Kansas — 0.6%

 

 

 

 

 

 

 

Dodge City, Kansas, Sales Tax Revenue Bonds (k):

 

 

 

 

 

 

 

4%, 6/01/22

 

 

1,000

 

 

969,700

 

4%, 6/01/24

 

 

2,245

 

 

2,116,361

 

 

 

 

 

 




 

 

 

 

 

 

3,086,061

 









Kentucky — 1.7%

 

 

 

 

 

 

 

Kentucky State Property and Buildings Commission,
Revenue Refunding Bonds (Project Number 93),
5.25%, 2/01/24 (l)

 

 

8,000

 

 

8,493,520

 









Louisiana — 2.8%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority Revenue Bonds
(Nineteenth Judicial District Court Building Project),
5.50%, 6/01/41 (d)(g)

 

 

2,000

 

 

2,031,580

 

Louisiana Public Facilities Authority Revenue Bonds
(University of New Orleans Research and Technology
Foundation, Inc. — Student Housing Project), 5.25%,
3/01/26 (d)

 

 

6,965

 

 

6,759,950

 

New Orleans, Louisiana, Aviation Board Revenue
Refunding Bonds, Series A-2, 6%, 1/01/23 (l)

 

 

850

 

 

874,403

 

Port New Orleans, Louisiana, IDR, Refunding
(Continental Grain Company Project), 6.50%,
1/01/17

 

 

5,000

 

 

4,250,550

 

 

 

 

 

 




 

 

 

 

 

 

13,916,483

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Maine — 0.3%

 

 

 

 

 

 

 

Portland, Maine, Housing Development Corporation,
Senior Living Revenue Bonds (Avesta Housing
Development Corporation Project), Series A, 6%,
2/01/34

 

$

1,965

 

$

1,435,138

 









Maryland — 0.1%

 

 

 

 

 

 

 

Maryland State Industrial Development Financing
Authority, EDR (Our Lady of Good Counsel School),
Series A, 6%, 5/01/35

 

 

500

 

 

345,775

 









Massachusetts — 1.6%

 

 

 

 

 

 

 

Massachusetts Bay Transportation Authority, Sales Tax
Revenue Refunding Bonds, Senior Series A, 5%,
7/01/12 (c)

 

 

4,560

 

 

5,074,596

 

Massachusetts State Development Finance Agency,
Resource Recovery Revenue Bonds (Ogden Haverhill
Associates), AMT, Series B:

 

 

 

 

 

 

 

5.35%, 12/01/15

 

 

1,210

 

 

1,035,421

 

5.50%, 12/01/19

 

 

2,000

 

 

1,623,920

 

 

 

 

 

 




 

 

 

 

 

 

7,733,937

 









Michigan — 2.9%

 

 

 

 

 

 

 

Macomb County, Michigan, Hospital Finance Authority,
Hospital Revenue Bonds (Mount Clemens General
Hospital), Series B, 5.875%, 11/15/13 (c)

 

 

2,325

 

 

2,732,038

 

Michigan State Hospital Finance Authority, Revenue
Refunding Bonds (Oakwood Obligated Group),
Series A, 6%, 4/01/22

 

 

4,795

 

 

4,539,187

 

Wayne County, Michigan, Airport Authority Revenue
Bonds (Detroit Metropolitan Wayne County Airport),
AMT, 4.75%, 12/01/18 (d)(l)

 

 

7,665

 

 

6,997,838

 

 

 

 

 

 




 

 

 

 

 

 

14,269,063

 









Minnesota — 1.1%

 

 

 

 

 

 

 

Minneapolis and Saint Paul, Minnesota, Housing and
Redevelopment Authority, Health Care System
Revenue Bonds (Group Health Plan Inc. Project):

 

 

 

 

 

 

 

6%, 12/01/19

 

 

1,000

 

 

994,530

 

6%, 12/01/21

 

 

2,545

 

 

2,472,696

 

Minnesota State Municipal Power Agency, Electric
Revenue Bonds, Series A, 5.25%, 10/01/24

 

 

2,000

 

 

2,039,560

 

 

 

 

 

 




 

 

 

 

 

 

5,506,786

 









Mississippi — 1.4%

 

 

 

 

 

 

 

Mississippi Business Finance Corporation, Mississippi,
PCR, Refunding (System Energy Resources Inc. Project):

 

 

 

 

 

 

 

5.875%, 4/01/22

 

 

5,000

 

 

4,566,100

 

5.90%, 5/01/22

 

 

2,910

 

 

2,662,825

 

 

 

 

 

 




 

 

 

 

 

 

7,228,925

 









Nevada — 0.3%

 

 

 

 

 

 

 

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

 

 

2,190

 

 

1,597,890

 









New Jersey — 13.3%

 

 

 

 

 

 

 

Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (f):

 

 

 

 

 

 

 

5.80%, 11/01/21

 

 

3,635

 

 

4,131,650

 

5.80%, 11/01/23

 

 

5,050

 

 

5,669,079

 

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

 

 

9,810

 

 

7,244,391

 

New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5.25%, 7/01/33 (d)

 

 

17,900

 

 

17,850,059

 

New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT, 6.625%,
9/15/12

 

 

5,540

 

 

4,833,705

 

New Jersey EDA, Water Facilities Revenue Refunding
Bonds (American Water), AMT, Series B, 5.125%,
4/01/22 (e)

 

 

5,000

 

 

4,412,900

 


 

 

 

See Notes to Financial Statements.

 

 


ANNUAL REPORT

APRIL 30, 2009

41



 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New Jersey (concluded)

 

 

 

 

 

 

 

New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Bonds, AMT, Series X,
5.10%, 10/01/23

 

$

4,500

 

$

4,496,175

 

New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds, Series D:

 

 

 

 

 

 

 

5%, 6/15/18 (e)

 

 

4,215

 

 

4,452,347

 

5%, 6/15/19 (f)

 

 

11,120

 

 

11,783,419

 

South Jersey Port Corporation of New Jersey, Marine
Terminal Revenue Bonds, Series O-1, 4.625%,
1/01/23 (l)

 

 

1,375

 

 

1,399,076

 

 

 

 

 

 




 

 

 

 

 

 

66,272,801

 









New Mexico — 2.1%

 

 

 

 

 

 

 

New Mexico Finance Authority, Senior Lien State
Transportation Revenue Bonds, Series A, 5.125%,
6/15/18 (d)

 

 

9,520

 

 

10,276,745

 









New York — 32.1%

 

 

 

 

 

 

 

Dutchess County, New York, IDA, Civic Facility Revenue
Bonds (Saint Francis Hospital), Series B, 7.25%,
3/01/19

 

 

965

 

 

890,627

 

Long Island Power Authority, New York, Electric System
Revenue Refunding Bonds, Series A, 5.50%, 4/01/24

 

 

1,475

 

 

1,568,839

 

Metropolitan Transportation Authority, New York,
Dedicated Tax Fund Revenue Bonds, Series B,
5.25%, 11/15/25

 

 

4,000

 

 

4,160,880

 

Metropolitan Transportation Authority, New York,
Revenue Bonds, Series A, 5%, 11/15/25

 

 

1,980

 

 

1,987,366

 

Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds, Series A, 5%, 11/15/25 (d)(g)

 

 

3,600

 

 

3,621,960

 

New York City, New York, City IDA, Special Facility Revenue
Bonds (Continental Airlines Inc. Project), AMT,
8.375%, 11/01/16

 

 

3,500

 

 

2,413,145

 

New York City, New York, City Transitional Finance
Authority, Building Aid Revenue Bonds, Series S-1:

 

 

 

 

 

 

 

5%, 1/15/23

 

 

3,560

 

 

3,622,514

 

5%, 7/15/24 (d)(g)

 

 

2,500

 

 

2,509,175

 

New York City, New York, GO, Refunding, Series B,
5.75%, 8/01/15

 

 

5,000

 

 

5,369,500

 

New York City, New York, GO, Series D1, 5.125%,
12/01/26

 

 

4,615

 

 

4,686,855

 

New York City, New York, GO, Sub-Series I-1, 5.50%,
4/01/21

 

 

5,000

 

 

5,410,050

 

New York City, New York, IDA, Civic Facility Revenue
Bonds (Special Needs Facilities Pooled Program),
Series C-1, 6.80%, 7/01/19

 

 

2,055

 

 

1,743,441

 

New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5%,
10/15/20 (d)

 

 

9,070

 

 

9,940,720

 

New York State Dormitory Authority, Lease Revenue
Refunding Bonds (Court Facilities), Series A, 5.25%,
5/15/12

 

 

5,580

 

 

6,043,419

 

New York State Dormitory Authority, Non-State
Supported Debt, Lease Revenue Bonds (Municipal
Health Facilities Improvement Program),
Sub-Series 2-4, 5%, 1/15/27

 

 

6,900

 

 

6,891,444

 

New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds (Mount
Sinai-NYU Medical Center Health System), Series A:

 

 

 

 

 

 

 

6.625%, 7/01/18

 

 

2,385

 

 

2,447,225

 

6.625%,7/01/19

 

 

1,330

 

 

1,362,878

 

New York State Dormitory Authority Revenue Bonds:

 

 

 

 

 

 

 

(North Shore — Long Island Jewish Health System),
5%, 5/01/12

 

 

1,000

 

 

1,055,840

 

(School Districts Financing Program), Series D,
5.25%, 10/01/23 (d)

 

 

9,540

 

 

9,581,022

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 

New York State Dormitory Authority, State Supported
Debt Revenue Bonds (Mental Health Services
Facilities), Series A, 5%, 2/15/22 (f)

 

$

4,000

 

$

4,136,120

 

New York State Environmental Facilities Corporation,
State Personal Income Tax Revenue Bonds, Series A,
5.25%, 12/15/14 (c)(g)

 

 

7,380

 

 

8,680,356

 

New York State Thruway Authority, Local Highway and
Bridge Service Contract, Revenue Refunding Bonds,
5.50%, 4/01/17

 

 

60

 

 

65,310

 

New York State Urban Development Corporation,
Correctional and Youth Facilities Services, Revenue
Refunding Bonds, Series A, 5.50%, 1/01/17

 

 

10,825

 

 

11,281,815

 

New York State Urban Development Corporation,
Personal Income Tax Revenue Bonds (State Facilities),
Series A-1, 5.25%, 3/15/34 (d)(g)

 

 

10,000

 

 

10,106,400

 

New York State Urban Development Corporation,
Service Contract Revenue Refunding Bonds, Series B,
5%, 1/01/21

 

 

8,000

 

 

8,407,840

 

Port Authority of New York and New Jersey, Consolidated
Revenue Refunding Bonds, 153rd Series, 5%, 7/15/24

 

 

2,010

 

 

2,103,324

 

Port Authority of New York and New Jersey, Senior
Consolidated Revenue Bonds, AMT, 131st Series,
5%, 12/15/17 (m)

 

 

5,000

 

 

5,161,800

 

Tobacco Settlement Financing Corporation of New York
Revenue Bonds:

 

 

 

 

 

 

 

Series A-1, 5.25%, 6/01/22 (e)

 

 

6,510

 

 

6,574,189

 

Series C-1, 5.50%, 6/01/20 (g)

 

 

9,750

 

 

10,024,463

 

Series C-1, 5.50%, 6/01/21

 

 

7,000

 

 

7,160,510

 

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

 

 

10,000

 

 

10,193,700

 

 

 

 

 

 




 

 

 

 

 

 

159,202,727

 









North Carolina — 0.9%

 

 

 

 

 

 

 

Gaston County, North Carolina, Industrial Facilities and
Pollution Control Financing Authority, Revenue Bonds
(National Gypsum Company Project), AMT, 5.75%,
8/01/35

 

 

3,105

 

 

1,487,295

 

North Carolina Municipal Power Agency Number 1,
Catawba Electric Revenue Bonds, Series A, 5.25%,
1/01/20 (d)

 

 

2,700

 

 

2,765,772

 

 

 

 

 

 




 

 

 

 

 

 

4,253,067

 









Ohio — 0.8%

 

 

 

 

 

 

 

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

 

 

4,820

 

 

2,977,314

 

Port of Greater Cincinnati Development Authority, Ohio,
Special Assessment Revenue Bonds (Cooperative
Public Parking Infrastructure Project), 6.30%, 2/15/24

 

 

1,280

 

 

1,003,354

 

 

 

 

 

 




 

 

 

 

 

 

3,980,668

 









Pennsylvania — 9.1%

 

 

 

 

 

 

 

Montgomery County, Pennsylvania, IDA, Revenue Bonds
(Whitemarsh Continuing Care Project), 6%, 2/01/21

 

 

3,500

 

 

2,581,110

 

Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds (National
Gypsum Company), AMT, Series A, 6.25%, 11/01/27

 

 

7,710

 

 

4,001,953

 

Philadelphia, Pennsylvania, Airport Revenue Bonds
(Philadelphia Airport System), AMT, Series A, 5%,
6/15/20 (f)

 

 

2,895

 

 

2,816,835

 

Philadelphia, Pennsylvania, Airport Revenue Refunding
Bonds (Philadelphia Airport System), AMT, Series B,
5%, 6/15/19 (f)

 

 

3,905

 

 

3,824,362

 

Philadelphia, Pennsylvania, Gas Works Revenue
Refunding Bonds, 1975 General Ordinance,
17th Series, 5.375%, 7/01/22 (f)

 

 

7,490

 

 

7,696,050

 


 

 

 

See Notes to Financial Statements.




42

ANNUAL REPORT

APRIL 30, 2009



 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Pennsylvania (concluded)

 

 

 

 

 

 

 

Pittsburgh, Pennsylvania, GO, Refunding, Series B,
5.25%, 9/01/17 (f)

 

$

9,630

 

$

10,407,334

 

Pittsburgh, Pennsylvania, GO, Series C, 5.25%,
9/01/18 (f)

 

 

6,430

 

 

6,861,710

 

Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare
System), Series A:

 

 

 

 

 

 

 

6.25%, 12/01/11 (c)

 

 

4,615

 

 

5,231,056

 

6.25%, 12/01/15

 

 

455

 

 

472,517

 

6.25%, 12/01/16

 

 

785

 

 

812,938

 

6.25%, 12/01/18

 

 

385

 

 

395,896

 

 

 

 

 

 




 

 

 

 

 

 

45,101,761

 









Puerto Rico — 13.3%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Aqueduct and Sewer
Authority, Senior Lien Revenue Bonds, Series A, 5%,
7/01/25 (l)

 

 

3,215

 

 

3,243,035

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Highway Revenue Bonds, Series Y, 6.25%,
7/01/21 (f)

 

 

3,000

 

 

3,217,260

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Subordinate Transportation Revenue Bonds,
5.75%, 7/01/21 (g)

 

 

4,375

 

 

4,295,856

 

Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series NN, 5.50%, 7/01/13 (c)

 

 

17,935

 

 

20,729,273

 

Puerto Rico Housing Financing Authority, Capital
Funding Program, Subordinate Revenue Refunding
Bonds, 5.125%, 12/01/27

 

 

13,900

 

 

14,009,393

 

Puerto Rico Industrial, Medical and Environmental
Pollution Control Facilities Financing Authority,
Special Facilities Revenue Bonds (American
Airlines Inc.), Series A, 6.45%, 12/01/25

 

 

5,390

 

 

2,156,054

 

Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds:

 

 

 

 

 

 

 

Series D, 5.25%, 7/01/27

 

 

3,930

 

 

3,339,596

 

Series I, 5.50%, 7/01/14 (c)(n)

 

 

8,000

 

 

9,169,280

 

Series M-3, 6%, 7/01/28 (d)(n)

 

 

1,900

 

 

1,861,696

 

Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.50%, 2/01/12 (c)

 

 

3,535

 

 

3,896,666

 

 

 

 

 

 




 

 

 

 

 

 

65,918,109

 









South Carolina — 2.4%

 

 

 

 

 

 

 

Georgetown County, South Carolina, Pollution Control
Facilities, Revenue Refunding Bonds (International
Paper Company Project), Series A, 5.125%, 2/01/12

 

 

8,000

 

 

7,620,800

 

Medical University Hospital Authority, South Carolina,
Hospital Facilities Revenue Refunding Bonds,
Series A, 5.25%, 8/15/23 (d)(i)

 

 

4,250

 

 

4,298,747

 

 

 

 

 

 




 

 

 

 

 

 

11,919,547

 









South Dakota — 0.3%

 

 

 

 

 

 

 

Educational Enhancement Funding Corporation, South
Dakota, Series B, 6.50%, 6/01/32

 

 

2,200

 

 

1,685,992

 









Tennessee — 5.3%

 

 

 

 

 

 

 

Jackson, Tennessee, GO, Refunding (l):

 

 

 

 

 

 

 

4.50%, 3/01/20

 

 

2,000

 

 

2,111,720

 

4.50%, 3/01/21

 

 

3,995

 

 

4,162,191

 

4.375%, 3/01/24

 

 

1,620

 

 

1,602,828

 

Johnson City, Tennessee, Health and Educational
Facilities Board, Retirement Facility Revenue Bonds
(Appalachian Christian Village Project), Series A,
6%, 2/15/19

 

 

1,800

 

 

1,505,682

 

Memphis-Shelby County, Tennessee, Airport Authority,
Airport Revenue Bonds, AMT, Series A, 5.50%,
3/01/17 (f)

 

 

2,005

 

 

2,020,519

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Tennessee (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.75%, 12/01/18

 

$

3,550

 

$

3,056,018

 

7%, 12/01/23

 

 

1,450

 

 

1,187,463

 

Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Methodist Healthcare) (c):

 

 

 

 

 

 

 

6%, 9/01/12

 

 

6,000

 

 

6,803,880

 

6.25%, 9/01/12

 

 

3,500

 

 

3,997,105

 

 

 

 

 

 




 

 

 

 

 

 

26,447,406

 









Texas — 9.0%

 

 

 

 

 

 

 

Austin, Texas, Convention Center Revenue Bonds
(Convention Enterprises Inc.), First Tier, Series A,
6.375%, 1/01/11 (c)

 

 

5,575

 

 

6,011,522

 

Bexar County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds (Army
Retirement Residence Project), 6.30%, 7/01/12 (c)

 

 

1,500

 

 

1,721,670

 

Brazos River Authority, Texas, PCR, Refunding (TXU
Energy Company Project), AMT, Series C, 5.75%,
5/01/36 (v)

 

 

7,000

 

 

4,130,000

 

Dallas-Fort Worth, Texas, International Airport Facility
Improvement Corporation, Revenue Bonds
(Learjet Inc.), AMT, Series A-1, 6.15%, 1/01/16

 

 

4,000

 

 

3,417,520

 

Dallas-Fort Worth, Texas, International Airport Facility
Improvement Corporation, Revenue Refunding Bonds,
AMT, Series A-2, 9%, 5/01/29

 

 

3,000

 

 

1,597,530

 

Dallas-Fort Worth, Texas, International Airport, Joint
Revenue Refunding Bonds, AMT, Sub-Series A-2,
6.10%, 11/01/24 (d)

 

 

1,500

 

 

1,501,740

 

Gulf Coast, Texas, IDA, Solid Waste Disposal Revenue
Bonds (Citgo Petroleum Corporation Project), AMT,
7.50%, 5/01/25

 

 

2,440

 

 

2,368,630

 

Gulf Coast Waste Disposal Authority, Texas, Revenue
Refunding Bonds (International Paper Company),
AMT, Series A, 6.10%, 8/01/24

 

 

2,000

 

 

1,523,500

 

Houston, Texas, Airport System Revenue Refunding
Bonds, Sub-Lien, AMT, Series A, 5.50%, 7/01/23 (e)

 

 

5,790

 

 

5,794,690

 

Houston, Texas, Health Facilities Development
Corporation, Retirement Facility Revenue Bonds
(Buckingham Senior Living Community), Series A,
7%, 2/15/14 (c)

 

 

1,500

 

 

1,790,205

 

Lower Colorado River Authority, Texas, PCR (Samsung
Austin Semiconductor), AMT, 6.95%, 4/01/30

 

 

7,420

 

 

6,874,333

 

Sabine River Authority, Texas, PCR, Refunding (TXU
Electric Company Project/TXU Energy Company LLC),
AMT, Series B, 5.75%, 5/01/30

 

 

5,000

 

 

2,950,000

 

Texas State Affordable Housing Corporation, S/F
Mortgage Revenue Bonds (Professional Educators
Home Loan Program), AMT, Series B, 5.95%,
12/01/39 (o)(p)(q)

 

 

4,702

 

 

4,792,890

 

 

 

 

 

 




 

 

 

 

 

 

44,474,230

 









U.S. Virgin Islands — 1.3%

 

 

 

 

 

 

 

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

 

 

1,860

 

 

1,458,779

 

Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
6.125%, 7/01/22

 

 

6,750

 

 

5,053,118

 

 

 

 

 

 




 

 

 

 

 

 

6,511,897

 









Vermont — 0.6%

 

 

 

 

 

 

 

Vermont Educational and Health Buildings Financing
Agency, Hospital Revenue Bonds (Fletcher Allen
Health Care), Series A, 6%, 12/01/23 (e)

 

 

3,000

 

 

2,830,170

 










 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

APRIL 30, 2009

43



 

 


 

 

Schedule of Investments (continued)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Virginia — 2.6%

 

 

 

 

 

 

 

James City County, Virginia, IDA, Residential Care Facility
Revenue Refunding Bonds, Series A:

 

 

 

 

 

 

 

5.75%, 3/01/17

 

$

3,285

 

$

2,845,664

 

6%, 3/01/23

 

 

1,150

 

 

879,888

 

Tobacco Settlement Financing Corporation of Virginia,
Asset-Backed Revenue Bonds, 5.625%, 6/01/15 (c)

 

 

7,800

 

 

9,004,710

 

 

 

 

 

 




 

 

 

 

 

 

12,730,262

 









Washington — 2.2%

 

 

 

 

 

 

 

Snohomish County, Washington, School District
Number 015 (Edmonds), GO, 5%, 12/01/19 (d)(g)

 

 

10,000

 

 

10,853,500

 









Total Municipal Bonds — 147.6%

 

 

 

 

 

732,497,677

 









 

 

 

 

 

 

 

 


Municipal Bonds Transferred to
Tender Option Bond Trusts (r)

 

 

 

 

 

 

 









California — 5.5%

 

 

 

 

 

 

 

Peralta, California, Community College District, GO
(Election of 2000), Series D, 5%, 8/01/30 (f)

 

 

10,140

 

 

10,047,523

 

San Jose, California, GO (Libraries, Parks and Public
Safety Projects), 5%, 9/01/30 (d)

 

 

3,101

 

 

3,110,579

 

Sequoia, California, Unified High School District, GO,
Refunding, Series B, 5.50%, 7/01/35 (f)

 

 

9,028

 

 

9,155,610

 

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

 

 

4,875

 

 

4,763,216

 

 

 

 

 

 




 

 

 

 

 

 

27,076,928

 









Illinois — 2.6%

 

 

 

 

 

 

 

McHenry County, Illinois, Conservation District, GO,
5.125%, 2/01/27 (f)

 

 

12,695

 

 

13,141,705

 









Massachusetts — 1.7%

 

 

 

 

 

 

 

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

 

 

8,338

 

 

8,495,360

 









New York — 2.3%

 

 

 

 

 

 

 

New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5.25%,
10/15/27 (e)

 

 

11,100

 

 

11,575,080

 









Texas — 6.7%

 

 

 

 

 

 

 

Harris County, Texas, Toll Road Revenue Refunding
Bonds, Senior Lien, Series A, 5.25%, 8/15/35 (f)

 

 

31,240

 

 

33,091,907

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 18.8%

 

 

 

 

 

93,380,980

 









Total Long-Term Investments
(Cost — $865,785,417) — 166.4%

 

 

 

 

 

825,878,657

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 









Texas — 0.1%

 

 

 

 

 

 

 

Austin, Texas, Hotel Occupancy Tax, Subordinate Lien
Revenue Refunding Bonds, VRDN, Series A, 3%,
5/07/09 (s)

 

$

260

 

$

260,000

 









 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 









Money Market Funds — 0.1%

 

 

 

 

 

 

 

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

 

 

403,856

 

 

403,856

 









Total Short-Term Securities (Cost — $663,856) — 0.2%

 

 

 

 

 

663,856

 









Total Investments (Cost — $866,449,273*) — 166.6%

 

 

 

 

 

826,542,513

 

Other Assets Less Liabilities — 2.1%

 

 

 

 

 

10,450,524

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (10.8)%

 

 

 

 

 

(53,499,322

)

Preferred Shares, at Redemption Value — (57.9)%

 

 

 

 

 

(287,247,205

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

496,246,510

 

 

 

 

 

 





 

 


*

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

 

$

813,142,577

 

 

 




Gross unrealized appreciation

 

$

21,412,877

 

Gross unrealized depreciation

 

 

(61,295,745

)

 

 




Net unrealized depreciation

 

$

(39,882,868

)

 

 





 

 

(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)

NPFGC Insured.

 

 

(e)

AMBAC Insured.

 

 

(f)

FSA Insured.

 

 

(g)

FGIC Insured.

 

 

(h)

BHAC Insured.

 

 

(i)

FHA Insured.

 

 

(j)

XL Capital Insured.

 

 

(k)

When-issued security.

 

 

(l)

Assured Guaranty Insured.

 

 

(m)

CIFG Insured.

 

 

(n)

Commonwealth Guaranteed.

 

 

(o)

GNMA Collateralized.

 

 

(p)

FHLMC Collateralized.

 

 

(q)

FNMA Collateralized.

 

 

(r)

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.

 

 

(s)

Security may have a maturity of more than one year at time of issuance but has variable rate and demand features that quality 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.

 

 

(t)

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

 

 

403,856

 

$

223,002

 










 

 

(u)

Represents the current yield as of report date.

 

 

(v)

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


 

 

 

See Notes to Financial Statements.


44

ANNUAL REPORT

APRIL 30, 2009



 

 


 

 

Schedule of Investments (concluded)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)


 

 

 

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

 

$

403,856

 

Level 2

 

 

826,138,657

 

Level 3

 

 

 






Total

 

$

826,542,513

 

 

 





 

 

 

See Notes to Financial Statements.

 

 


ANNUAL REPORT

APRIL 30, 2009

45



 

 



 

Schedule of Investments April 30, 2009

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 2.6%

 

 

 

 

 

 

 

Prattville, Alabama, IDB, Environmental Improvement
Revenue Bonds (International Paper Company
Projects), AMT, Series A, 4.75%, 12/01/30

 

$

3,500

 

$

2,060,660

 

Selma, Alabama, IDB, Environmental Improvement
Revenue Bonds (International Paper Company
Project), AMT, Series A, 4.75%, 12/01/30

 

 

5,000

 

 

2,943,800

 

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)

 

 

2,900

 

 

1,236,531

 

 

 

 

 

 




 

 

 

 

 

 

6,240,991

 









Arizona — 2.0%

 

 

 

 

 

 

 

Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.75%, 7/01/29

 

 

1,000

 

 

667,370

 

Maricopa County, Arizona, School District Number 3,
GO, Refunding (Tempe Elementary), 7.50%,
7/01/10 (c)(d)

 

 

2,315

 

 

2,469,688

 

Pima County, Arizona, IDA, Education Revenue Bonds
(Arizona Charter Schools Project), Series C, 6.75%,
7/01/31

 

 

1,960

 

 

1,376,841

 

Pima County, Arizona, IDA, Education Revenue
Refunding Bonds (Arizona Charter Schools Project II),
Series A, 6.75%, 7/01/21

 

 

495

 

 

387,912

 

 

 

 

 

 




 

 

 

 

 

 

4,901,811

 









California — 11.7%

 

 

 

 

 

 

 

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

 

 

2,615

 

 

2,719,312

 

California State, GO:

 

 

 

 

 

 

 

5.50%, 4/01/30

 

 

5

 

 

5,010

 

6.50%, 4/01/33

 

 

14,925

 

 

16,304,219

 

Chula Vista, California, IDR (San Diego Gas and Electric
Company), AMT, Series B, 5%, 12/01/27

 

 

2,500

 

 

2,222,075

 

Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series A-3, 7.875%, 6/01/13 (e)

 

 

5,010

 

 

6,065,056

 

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

 

 

1,070

 

 

1,080,047

 

 

 

 

 

 




 

 

 

 

 

 

28,395,719

 









Colorado — 4.9%

 

 

 

 

 

 

 

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

 

 

120

 

 

128,953

 

Colorado Health Facilities Authority Revenue Bonds
(Catholic Health Initiatives), Series D, 6.25%,
10/01/33

 

 

1,060

 

 

1,112,216

 

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

 

 

 

 

 

 

 

Series A, 7.35%, 9/01/31

 

 

3,025

 

 

2,405,298

 

Series B, 7.45%, 9/01/31

 

 

440

 

 

353,408

 

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

 

 

1,310

 

 

1,488,658

 

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

 

 

 

 

 

 

 

8%, 12/01/25

 

 

3,300

 

 

2,798,433

 

8.125%, 12/01/25

 

 

820

 

 

630,170

 

Southlands Metropolitan District Number 1, Colorado,
GO, 7%, 12/01/14 (e)

 

 

1,000

 

 

1,248,660

 

University of Colorado, Enterprise System Revenue
Bonds, Series A:

 

 

 

 

 

 

 

5.75%, 6/01/28

 

 

750

 

 

811,395

 

5.125%, 6/01/29

 

 

1,000

 

 

1,030,540

 

 

 

 

 

 




 

 

 

 

 

 

12,007,731

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Connecticut — 0.8%

 

 

 

 

 

 

 

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

 

$

1,165

 

$

1,029,732

 

Mohegan Tribe Indians Gaming Authority, Connecticut,
Public Improvement Revenue Refunding Bonds
(Priority Distribution), 6.25%, 1/01/31

 

 

2,000

 

 

1,000,060

 

 

 

 

 

 




 

 

 

 

 

 

2,029,792

 









Florida — 8.5%

 

 

 

 

 

 

 

Fiddlers Creek, Florida, Community Development
District Number 2, Special Assessment
Revenue Bonds:

 

 

 

 

 

 

 

Series A, 6.375%, 5/01/35

 

 

2,350

 

 

1,568,578

 

Series B, 5.75%, 5/01/13

 

 

400

 

 

359,824

 

Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT,
Series B, 7.125%, 4/01/30

 

 

2,720

 

 

1,397,182

 

Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (H. Lee Moffitt Cancer Center Project), Series A,
5.25%, 7/01/37

 

 

3,500

 

 

2,906,435

 

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

 

 

10,000

 

 

8,623,100

 

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

 

 

2,720

 

 

1,738,461

 

Orlando, Florida, Urban Community Development District,
Capital Improvement Special Assessment Bonds:

 

 

 

 

 

 

 

6.25%, 5/01/34

 

 

1,135

 

 

766,795

 

Series A, 6.95%, 5/01/11 (e)

 

 

1,000

 

 

1,104,000

 

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

 

 

1,230

 

 

663,154

 

Park Place Community Development District, Florida,
Special Assessment Revenue Bonds, 6.75%,
5/01/10 (e)

 

 

875

 

 

935,839

 

Preserve at Wilderness Lake, Florida, Community
Development District, Capital Improvement Bonds,
Series A, 7.10%, 5/01/33

 

 

890

 

 

726,293

 

 

 

 

 

 




 

 

 

 

 

 

20,789,661

 









Georgia — 4.5%

 

 

 

 

 

 

 

Fulton County, Georgia, Residential Care Facilities,
Revenue Refunding Bonds (Canterbury Court Project),
Series A, 6.125%, 2/15/26

 

 

2,000

 

 

1,466,600

 

Gainesville, Georgia, Redevelopment Authority,
Educational Facilities Revenue Refunding Bonds
(Riverside Military Academy), 5.125%, 3/01/37

 

 

600

 

 

298,878

 

Georgia Municipal Electric Authority, Power Revenue
Refunding Bonds:

 

 

 

 

 

 

 

Series W, 6.60%, 1/01/18

 

 

5,590

 

 

6,436,382

 

Series W, 6.60%, 1/01/18 (i)

 

 

380

 

 

443,684

 

Series X, 6.50%, 1/01/20

 

 

1,250

 

 

1,450,775

 

Main Street Natural Gas, Inc., Georgia, Gas Project
Revenue Bonds, Series A, 6.25%, 7/15/33 (a)(b)

 

 

2,200

 

 

819,522

 

 

 

 

 

 




 

 

 

 

 

 

10,915,841

 









Idaho — 0.0%

 

 

 

 

 

 

 

Idaho Housing Agency, S/F Mortgage Revenue
Refunding Bonds, AMT, Series E-2, 6.90%, 1/01/27

 

 

50

 

 

50,063

 










 

 

 

See Notes to Financial Statements.

 




46

ANNUAL REPORT

APRIL 30, 2009



 

 



 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Illinois — 12.4%

 

 

 

 

 

 

 

Chicago, Illinois, S/F Mortgage Revenue Bonds, AMT,
Series C, 7%, 3/01/32 (j)(k)(l)

 

$

165

 

$

170,032

 

Chicago, Illinois, Special Assessment Bonds (Lake
Shore East), 6.75%, 12/01/32

 

 

800

 

 

548,944

 

Chicago, Illinois, Tax Allocation Bonds (Kingsbury
Redevelopment Project), Series A, 6.57%, 2/15/13

 

 

1,000

 

 

936,750

 

Hodgkins, Illinois, Environmental Improvement Revenue
Bonds (Metro Biosolids Management LLC Project),
AMT, 6%, 11/01/23

 

 

2,800

 

 

2,749,544

 

Illinois Development Finance Authority Revenue Bonds
(Community Rehabilitation Providers Facilities),
Series A, 6.50%, 7/01/22

 

 

1,000

 

 

941,760

 

Illinois Development Finance Authority, Revenue
Refunding Bonds (Community Rehabilitation
Providers Facilities), Series A, 6%, 7/01/15

 

 

635

 

 

625,958

 

Illinois State Finance Authority Revenue Bonds:

 

 

 

 

 

 

 

(Advocate Health Care Network), Series D, 6.50%,
11/01/38

 

 

5,000

 

 

5,234,350

 

(Friendship Village of Schaumburg), Series A,
5.625%, 2/15/37

 

 

500

 

 

282,110

 

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

 

 

1,035

 

 

657,691

 

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

 

 

3,000

 

 

3,108,540

 

Regional Transportation Authority, Illinois, Revenue Bonds:

 

 

 

 

 

 

 

Series A, 7.20%, 11/01/20 (m)

 

 

1,500

 

 

1,858,680

 

Series A, 6.70%, 11/01/21 (c)(d)

 

 

7,000

 

 

8,541,750

 

Series C, 7.75%, 6/01/20 (c)(d)

 

 

2,500

 

 

3,205,225

 

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

 

 

1,580

 

 

1,212,982

 

 

 

 

 

 




 

 

 

 

 

 

30,074,316

 









Indiana — 7.4%

 

 

 

 

 

 

 

Indiana Health and Educational Facilities Financing
Authority, Hospital Revenue Bonds (Clarian Health
Obligation), Series A, 5.25%, 2/15/40

 

 

2,200

 

 

1,762,266

 

Indiana Transportation Finance Authority, Highway
Revenue Bonds:

 

 

 

 

 

 

 

Series A, 7.25%, 6/01/15

 

 

1,900

 

 

2,146,150

 

Series A, 6.80%, 12/01/16

 

 

3,775

 

 

4,349,668

 

Indianapolis, Indiana, Local Public Improvement Bond
Bank, Revenue Refunding Bonds, Series D, 6.75%,
2/01/14

 

 

8,750

 

 

9,731,662

 

 

 

 

 

 




 

 

 

 

 

 

17,989,746

 









Louisiana — 7.6%

 

 

 

 

 

 

 

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

 

 

8,260

 

 

7,031,490

 

Port New Orleans, Louisiana, IDR, Refunding
(Continental Grain Company Project), 6.50%,
1/01/17

 

 

10,000

 

 

8,501,100

 

Sabine River Authority, Louisiana, Water Facilities
Revenue Refunding Bonds (International Paper
Company), 6.20%, 2/01/25

 

 

3,600

 

 

2,877,192

 

 

 

 

 

 




 

 

 

 

 

 

18,409,782

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Maryland — 1.8%

 

 

 

 

 

 

 

Maryland State Community Development
Administration, Department of Housing and
Community Development, Residential Revenue
Refunding Bonds, AMT, Series D, 4.90%, 9/01/42

 

$

1,500

 

$

1,317,060

 

Maryland State Health and Higher Educational
Facilities Authority Revenue Bonds, Series B:

 

 

 

 

 

 

 

(King Farm Presbyterian Community), 5%, 1/01/17

 

 

1,100

 

 

850,113

 

(University of Maryland Medical System),
7%, 7/01/22 (c)(d)

 

 

1,000

 

 

1,148,280

 

Montgomery County, Maryland, Special Obligation, GO
(West Germantown Development District), Series A,
6.70%, 7/01/27 (n)

 

 

1,205

 

 

1,107,793

 

 

 

 

 

 




 

 

 

 

 

 

4,423,246

 









Massachusetts — 8.0%

 

 

 

 

 

 

 

Massachusetts State College Building Authority, Project
Revenue Refunding Bonds, Senior-Series A, 7.50%,
5/01/11 (o)

 

 

500

 

 

561,535

 

Massachusetts State, HFA, Housing Revenue Bonds,
AMT, Series A:

 

 

 

 

 

 

 

5.10%, 12/01/27

 

 

2,000

 

 

1,891,920

 

5.20%, 12/01/37

 

 

3,000

 

 

2,773,590

 

Massachusetts State, HFA, Housing Revenue Refunding
Bonds, AMT:

 

 

 

 

 

 

 

Series D, 4.85%, 6/01/40

 

 

2,770

 

 

2,371,702

 

Series F, 5.70%, 6/01/40

 

 

2,235

 

 

2,132,346

 

Massachusetts State, HFA, S/F Housing Revenue
Bonds, AMT, Series 130, 5%, 12/01/32

 

 

2,720

 

 

2,471,283

 

Massachusetts State Water Resource Authority Revenue
Bonds, Series A, 6.50%, 7/15/19 (i)

 

 

6,000

 

 

7,370,580

 

 

 

 

 

 




 

 

 

 

 

 

19,572,956

 









Michigan — 8.7%

 

 

 

 

 

 

 

Flint, Michigan, Hospital Building Authority, Revenue
Refunding Bonds (Hurley Medical Center), Series A,
6%, 7/01/20 (p)

 

 

3,100

 

 

2,482,604

 

Michigan State Hospital Finance Authority, Revenue
Refunding Bonds:

 

 

 

 

 

 

 

(Henry Ford Health System), Series A, 5.25%,
11/15/46

 

 

7,050

 

 

5,275,233

 

(McLaren Health Care Corporation), 5.75%,
5/15/38

 

 

8,560

 

 

7,808,946

 

(Trinity Health Credit Group), Series A, 6%,
12/01/20

 

 

2,200

 

 

2,261,182

 

Pontiac, Michigan, Tax Increment Finance Authority,
Revenue Refunding Bonds (Development Area
Number 3), 6.375%, 6/01/12 (e)

 

 

3,000

 

 

3,462,120

 

 

 

 

 

 




 

 

 

 

 

 

21,290,085

 









Mississippi — 7.0%

 

 

 

 

 

 

 

Lowndes County, Mississippi, Solid Waste Disposal and
PCR, Refunding (Weyerhaeuser Company Project),
Series A, 6.80%, 4/01/22

 

 

5,850

 

 

4,687,956

 

Mississippi Business Finance Corporation, Mississippi,
PCR, Refunding (System Energy Resources Inc. Project):

 

 

 

 

 

 

 

5.875%, 4/01/22

 

 

7,200

 

 

6,575,184

 

5.90%, 5/01/22

 

 

5,215

 

 

4,772,038

 

University of Southern Mississippi Education Building
Corporation Revenue Bonds (Campus Facilities
Improvements Project), 5.375%, 9/01/36

 

 

1,065

 

 

1,086,513

 

 

 

 

 

 




 

 

 

 

 

 

17,121,691

 










 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2009

47



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Missouri — 0.0%

 

 

 

 

 

 

 

Missouri State Housing Development Commission,
S/F Mortgage Revenue Bonds (Homeowner Loan),
AMT, Series A, 7.50%, 3/01/31 (k)(l)

 

$

70

 

$

75,223

 









Nevada — 0.2%

 

 

 

 

 

 

 

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

 

 

605

 

 

441,426

 









New Jersey — 6.1%

 

 

 

 

 

 

 

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

 

 

4,250

 

 

3,311,345

 

New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT, 6.25%,
9/15/29

 

 

3,000

 

 

1,918,500

 

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

 

 

1,680

 

 

43,512

 

New Jersey State Housing and Mortgage Finance Agency
Revenue Bonds, Series AA, 6.375%, 10/01/28

 

 

1,300

 

 

1,402,011

 

New Jersey State Turnpike Authority, Turnpike Revenue
Bonds, Series E, 5.25%, 1/01/40

 

 

4,170

 

 

4,191,684

 

Tobacco Settlement Financing Corporation of New Jersey,
Asset-Backed Revenue Bonds, 7%, 6/01/13 (e)

 

 

3,285

 

 

3,977,642

 

 

 

 

 

 




 

 

 

 

 

 

14,844,694

 









New Mexico — 1.3%

 

 

 

 

 

 

 

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

 

 

3,160

 

 

3,160,664

 









New York — 10.4%

 

 

 

 

 

 

 

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

 

 

9,405

 

 

10,378,512

 

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

 

 

 

 

 

 

 

Series C, 6.80%, 6/01/28

 

 

690

 

 

676,952

 

(Special Needs Facility Pooled Program),
Series C-1, 6.50%, 7/01/17

 

 

890

 

 

759,393

 

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

 

 

1,920

 

 

1,291,277

 

New York City, New York, City Municipal Water Finance
Authority, Second General Resolution, Water and
Sewer System Revenue Bonds, Series FF-2, 5.50%,
6/15/40

 

 

1,575

 

 

1,656,695

 

New York City, New York, City Transitional Finance
Authority, Building Aid Revenue Bonds, Series S-3,
5.25%, 1/15/39

 

 

6,700

 

 

6,561,243

 

New York City, New York, GO, Refunding, Series A,
6.375%, 5/15/15 (c)(d)

 

 

40

 

 

42,352

 

Westchester County, New York, IDA, Civic Facility
Revenue Bonds (Special Needs Facilities Pooled
Program), Series E-1, 6.50%, 7/01/17

 

 

1,000

 

 

853,250

 

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

 

 

2,690

 

 

3,135,868

 

 

 

 

 

 




 

 

 

 

 

 

25,355,542

 









North Carolina — 0.9%

 

 

 

 

 

 

 

Gaston County, North Carolina, Industrial Facilities and
Pollution Control Financing Authority, Revenue Bonds
(National Gypsum Company Project), AMT, 5.75%,
8/01/35

 

 

1,675

 

 

802,325

 

North Carolina Medical Care Commission, Retirement
Facilities Revenue Refunding Bonds (Carolina Village
Project), 6%, 4/01/38

 

 

2,000

 

 

1,306,420

 

 

 

 

 

 




 

 

 

 

 

 

2,108,745

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Ohio — 3.2%

 

 

 

 

 

 

 

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

 

$

12,500

 

$

7,721,250

 









Pennsylvania — 2.2%

 

 

 

 

 

 

 

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

 

 

880

 

 

641,951

 

Lancaster County, Pennsylvania, Hospital Authority
Revenue Bonds (Brethren Village Project), Series A,
6.50%, 7/01/40

 

 

2,000

 

 

1,580,320

 

Montgomery County, Pennsylvania, IDA, Revenue Bonds
(Whitemarsh Continuing Care Project):

 

 

 

 

 

 

 

6.125%, 2/01/28

 

 

470

 

 

308,090

 

6.25%, 2/01/35

 

 

1,090

 

 

666,775

 

Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds (National
Gypsum Company), AMT, Series B, 6.125%, 11/01/27

 

 

2,000

 

 

1,038,200

 

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

 

 

1,265

 

 

1,079,374

 

 

 

 

 

 




 

 

 

 

 

 

5,314,710

 









Rhode Island — 0.5%

 

 

 

 

 

 

 

Rhode Island State Health and Educational Building
Corporation, Hospital Financing Revenue Bonds
(Lifespan Obligation Group), 6.50%, 8/15/12 (e)

 

 

1,140

 

 

1,312,037

 









South Carolina — 2.2%

 

 

 

 

 

 

 

South Carolina Housing Finance and Development
Authority, Mortgage Revenue Bonds, AMT, Series A,
6.70%, 7/01/27

 

 

125

 

 

125,104

 

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

 

 

5,000

 

 

5,248,150

 

 

 

 

 

 




 

 

 

 

 

 

5,373,254

 









Tennessee — 0.5%

 

 

 

 

 

 

 

Johnson City, Tennessee, Health and Educational
Facilities Board, Retirement Facility Revenue Bonds
(Appalachian Christian Village Project), Series A, 6%,
2/15/24

 

 

1,000

 

 

763,870

 

Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Methodist Healthcare), 6.50%, 9/01/12 (e)

 

 

425

 

 

494,339

 

 

 

 

 

 




 

 

 

 

 

 

1,258,209

 









Texas — 10.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series A, 7.70%, 4/01/33

 

 

1,500

 

 

615,255

 

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

 

 

2,740

 

 

1,616,600

 

Brazos River, Texas, Harbor Navigation District, Brazoria
County Environmental Revenue Refunding Bonds
(Dow Chemical Company Project), AMT, Series A-7,
6.625%, 5/15/33

 

 

5,800

 

 

4,581,884

 

Dallas-Fort Worth, Texas, International Airport, Joint
Revenue Bonds, AMT (c):

 

 

 

 

 

 

 

Series B, 6.25%, 11/01/28

 

 

4,500

 

 

4,509,990

 

Series C, 6.25%, 11/01/28

 

 

3,450

 

 

3,457,659

 

Dallas-Fort Worth, Texas, International Airport, Joint
Revenue Refunding Bonds, AMT, Sub-Series A-2,
6.10%, 11/01/24 (c)

 

 

1,500

 

 

1,501,740

 

Guadalupe-Blanco River Authority, Texas, Sewage and
Solid Waste Disposal Facility Revenue Bonds
(E. I. du Pont de Nemours and Company Project),
AMT, 6.40%, 4/01/26

 

 

2,250

 

 

2,138,535

 


 

 

 

See Notes to Financial Statements.

 


48

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniVest Fund II, Inc. (MVT)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

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

 

$

2,000

 

$

2,120,260

 

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

 

 

4,820

 

 

3,566,511

 

Port Corpus Christi, Texas, Revenue Refunding Bonds
(Celanese Project):

 

 

 

 

 

 

 

AMT, Series B, 6.70%, 11/01/30

 

 

2,500

 

 

1,556,150

 

Series A, 6.45%, 11/01/30

 

 

800

 

 

486,784

 

 

 

 

 

 




 

 

 

 

 

 

26,151,368

 









U.S. Virgin Islands — 1.9%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

4,705,740

 









Virginia — 1.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.125%, 10/01/37

 

 

1,000

 

 

697,670

 

5.125%, 10/01/42

 

 

3,440

 

 

2,336,723

 

 

 

 

 

 




 

 

 

 

 

 

3,034,393

 









Washington — 6.6%

 

 

 

 

 

 

 

Energy Northwest, Washington, Electric Revenue
Refunding Bonds (Columbia Generating):

 

 

 

 

 

 

 

Series A, 5.75%, 7/01/18 (c)

 

 

1,000

 

 

1,072,480

 

Series B, 6%, 7/01/18 (m)

 

 

2,250

 

 

2,424,938

 

Washington State Health Care Facilities Authority,
Revenue Refunding Bonds (Catholic Health
Initiatives), Series D, 6.375%, 10/01/36

 

 

3,700

 

 

3,863,429

 

Washington State Public Power Supply System,
Revenue Refunding Bonds, Series B:

 

 

 

 

 

 

 

(Nuclear Project Number 1), 7.125%, 7/01/16

 

 

5,000

 

 

6,328,700

 

(Nuclear Project Number 3), 7.125%, 7/01/16 (c)

 

 

1,900

 

 

2,397,914

 

 

 

 

 

 




 

 

 

 

 

 

16,087,461

 









Wisconsin — 5.2%

 

 

 

 

 

 

 

Wisconsin Housing and EDA, Home Ownership Revenue
Refunding Bonds, AMT, Series A, 5.625%, 3/01/31

 

 

2,830

 

 

2,817,435

 

Wisconsin State, General Fund Annual Appropriation
Bonds, Series A, 6%, 5/01/36

 

 

7,100

 

 

7,482,051

 

Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (SynergyHealth Inc.), 6%,
11/15/32

 

 

2,215

 

 

2,231,258

 

 

 

 

 

 




 

 

 

 

 

 

12,530,744

 









Total Municipal Bonds — 141.1%

 

 

 

 

 

343,688,891

 









 

 

 

 

 

 

 

 









Municipal Bonds Transferred to
Tender Option Bond Trust (q)

 

 

 

 

 

 

 









Connecticut — 2.5%

 

 

 

 

 

 

 

Connecticut State Health and Educational Facilities
Authority Revenue Bonds (Yale University), Series Z-3,
5.05%, 7/01/42

 

 

6,000

 

 

6,190,020

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trust (q)

 

Par
(000)

 

Value

 









Illinois — 5.8%

 

 

 

 

 

 

 

Chicago, Illinois, Water Revenue Refunding Bonds,
Second Lien, 5.25%, 11/01/33 (r)

 

$

1,320

 

$

1,334,335

 

Kane and De Kalb Counties, Illinois, Community Unit
School District Number 302, GO (d):

 

 

 

 

 

 

 

5.75%, 2/01/19

 

 

1,000

 

 

1,176,530

 

5.75%, 2/01/20

 

 

4,200

 

 

4,941,426

 

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

 

 

6,400

 

 

6,738,944

 

 

 

 

 

 




 

 

 

 

 

 

14,191,235

 









Maryland — 1.0%

 

 

 

 

 

 

 

Maryland State Transportation Authority, Transportation
Facilities Projects Revenue Bonds, 5%, 7/01/41 (r)

 

 

2,290

 

 

2,342,258

 









Massachusetts — 4.2%

 

 

 

 

 

 

 

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

 

 

10,000

 

 

10,188,300

 









New York — 2.6%

 

 

 

 

 

 

 

New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Revenue
Refunding Bonds, Series DD, 5%, 6/15/37

 

 

6,299

 

 

6,195,833

 









North Carolina — 2.6%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency,
Revenue Refunding Bonds (Duke University Project),
Series A, 5%, 10/01/41

 

 

6,239

 

 

6,355,050

 









Ohio — 1.0%

 

 

 

 

 

 

 

Ohio State Higher Educational Facilities Commission,
Hospital Revenue Bonds (University Hospitals Health
System), Series A, 5.25%, 01/01/33

 

 

2,400

 

 

2,345,760

 









Texas — 7.7%

 

 

 

 

 

 

 

Harris County, Texas, Health Facilities Development
Corporation Revenue Refunding Bonds (School
Health Care System), Series B, 5.75%, 7/01/27 (i)

 

 

10,000

 

 

11,352,000

 

Texas State Department of Housing and Community
Affairs, S/F Mortgage Revenue Bonds, AMT, Series B,
5.25%, 9/01/32 (j)(k)(l)

 

 

4,972

 

 

4,666,487

 

Texas State University, System Financing Revenue
Refunding Bonds, 5%, 3/15/30 (r)

 

 

2,743

 

 

2,776,638

 

 

 

 

 

 




 

 

 

 

 

 

18,795,125

 









Washington — 8.4%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation Authority,
Washington, Sales and Use Tax Revenue Bonds,
Series A:

 

 

 

 

 

 

 

5%, 11/01/32 (r)

 

 

7,693

 

 

7,762,398

 

5%, 11/01/34

 

 

5,000

 

 

5,027,500

 

5%, 11/01/36

 

 

4,000

 

 

4,022,000

 

Energy Northwest, Washington, Electric Revenue
Refunding Bonds (Columbia Generating), Series A,
5.75%, 7/01/18 (c)

 

 

3,500

 

 

3,753,680

 

 

 

 

 

 




 

 

 

 

 

 

20,565,578

 









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

 

 

 

 

 

87,169,159

 









Total Investments (Cost — $458,763,614*) — 176.9%

 

 

 

 

 

430,858,050

 

Other Assets Less Liabilities — 3.4%

 

 

 

 

 

8,462,062

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (18.4)%

 

 

 

 

 

(44,902,432

)

Preferred Shares, at Redemption Value (61.9)%

 

 

 

 

 

(150,834,619

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

243,583,061

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

49



 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniVest Fund II, Inc. (MVT)


 

 

*

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

 

$

413,912,072

 

 

 




Gross unrealized appreciation

 

$

20,733,066

 

Gross unrealized depreciation

 

 

(48,553,529

)

 

 




Net unrealized depreciation

 

$

(27,820,463

)

 

 





 

 

 

(a)

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

 

 

 

(b)

Non-income producing security.

 

 

 

(c)

NPFGC Insured.

 

 

 

(d)

FGIC Insured.

 

 

 

(e)

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.

 

 

 

(f)

When-issued security.

 

 

 

(g)

XL Capital Insured.

 

 

 

(h)

Assured Guaranty Insured.

 

 

 

(i)

Security is collateralized by Municipal or US Treasury Obligations.

 

 

 

(j)

FHLMC Collateralized.

 

 

 

(k)

FNMA Collateralized.

 

 

 

(l)

GNMA Collateralized.

 

 

 

(m)

AMBAC Insured.

 

 

 

(n)

Radian Insured.

 

 

 

(o)

Commonwealth Guaranteed.

 

 

 

(p)

ACA Insured.

 

 

 

(q)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

(r)

FSA Insured.

 

 

 

(s)

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

 

 

 

Effective November 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

 

 

 

Level 2

 

$

430,858,050

 

Level 3

 

 

 






Total

 

$

430,858,050

 

 

 





 

 

 

See Notes to Financial Statements.

 


50

ANNUAL REPORT

APRIL 30, 2009



 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 



Assets

 



Investments at value — unaffiliated1

 

$

157,356,981

 

$

226,549,098

 

$

482,896,870

 

$

307,507,159

 

$

226,590,809

 

$

263,758,832

 

$

826,138,657

 

$

430,858,050

 

Investments at value — affiliated2

 

 

100,006

 

 

2,001,534

 

 

3,302,493

 

 

1,910,337

 

 

112,826

 

 

15,326,703

 

 

403,856

 

 

 

Cash

 

 

43,120

 

 

1,781

 

 

37,185

 

 

1,758,061

 

 

1,368,477

 

 

 

 

80,441

 

 

994,448

 

Investments sold receivable

 

 

500,000

 

 

240,000

 

 

126,445

 

 

167,424

 

 

40,000

 

 

777,498

 

 

2,297,300

 

 

1,589,543

 

Interest receivable

 

 

3,798,159

 

 

5,432,679

 

 

7,805,575

 

 

5,586,580

 

 

3,718,742

 

 

3,820,784

 

 

13,808,406

 

 

8,648,212

 

Prepaid expenses

 

 

17,072

 

 

20,833

 

 

32,805

 

 

18,335

 

 

19,554

 

 

15,372

 

 

67,611

 

 

34,684

 

Other assets

 

 

 

 

 

 

 

 

 

 

 

 

1,310

 

 

36,842

 

 

 

 

 

























Total assets

 

 

161,815,338

 

 

234,245,925

 

 

494,201,373

 

 

316,947,896

 

 

231,850,408

 

 

283,700,499

 

 

842,833,113

 

 

442,124,937

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Accrued Liabilities

 



























Bank overdraft

 

 

 

 

 

 

 

 

 

 

 

 

4,415

 

 

 

 

 

Investments purchased payable

 

 

500,000

 

 

 

 

648,794

 

 

8,728,132

 

 

6,357,795

 

 

4,146,786

 

 

3,145,687

 

 

1,082,561

 

Income dividends payable — Common Shares

 

 

926,825

 

 

1,414,839

 

 

1,262,905

 

 

987,823

 

 

703,916

 

 

624,981

 

 

2,206,026

 

 

1,447,355

 

Investment advisory fees payable

 

 

83,791

 

 

102,558

 

 

199,012

 

 

136,205

 

 

99,836

 

 

100,227

 

 

305,577

 

 

177,784

 

Interest expense and fees payable

 

 

8,165

 

 

14,465

 

 

154,206

 

 

123,722

 

 

101,465

 

 

102,894

 

 

216,518

 

 

135,991

 

Other affiliates payable

 

 

1,024

 

 

1,352

 

 

2,034

 

 

1,704

 

 

1,236

 

 

1,740

 

 

5,392

 

 

2,492

 

Officer’s and Directors’ fees payable

 

 

181

 

 

263

 

 

576

 

 

359

 

 

261

 

 

332

 

 

38,378

 

 

647

 

Other accrued expenses payable

 

 

49,360

 

 

57,347

 

 

128,822

 

 

62,469

 

 

66,850

 

 

58,441

 

 

139,016

 

 

93,986

 

 

 

























Total accrued liabilities

 

 

1,569,346

 

 

1,590,824

 

 

2,396,349

 

 

10,040,414

 

 

7,331,359

 

 

5,039,816

 

 

6,056,594

 

 

2,940,816

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Other Liabilities

 



Trust certificates3

 

 

7,285,446

 

 

10,755,646

 

 

45,851,537

 

 

30,287,956

 

 

24,138,073

 

 

26,389,442

 

 

53,282,804

 

 

44,766,441

 

 

 

























Total Liabilities

 

 

8,854,792

 

 

12,346,470

 

 

48,247,886

 

 

40,328,370

 

 

31,469,432

 

 

31,429,258

 

 

59,339,398

 

 

47,707,257

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Preferred Shares at Redemption Value


$25,000 per share at liquidation preference, plus unpaid dividends4

 

 

 

 

 

 

158,875,005

 

 

91,934,549

 

 

61,003,971

 

 

94,210,220

 

 

287,247,205

 

 

150,834,619

 

 

 

























Net Assets Applicable to Common Shareholders

 

$

152,960,546

 

$

221,899,455

 

$

287,078,482

 

$

184,684,977

 

$

139,377,005

 

$

158,061,021

 

$

496,246,510

 

$

243,583,061

 

 

 


























 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

51



 


 

Statements of Assets and Liabilities (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 



Net Assets Applicable to Common Shareholders Consist of

 



Paid-in capital

 

$

196,126,375

 

$

295,726,346

 

$

316,511,557

 

$

207,184,538

 

$

154,187,843

 

$

173,564,169

 

$

540,501,506

 

$

278,610,687

 

Undistributed net investment income

 

 

1,296,579

 

 

1,210,315

 

 

2,930,536

 

 

2,334,885

 

 

2,284,534

 

 

2,284,843

 

 

4,159,528

 

 

2,348,021

 

Accumulated net realized gain (loss)

 

 

(10,942,960

)

 

(26,535,985

)

 

(8,342,940

)

 

514,391

 

 

(1,474,003

)

 

(12,606,509

)

 

(8,507,764

)

 

(9,470,083

)

Net unrealized appreciation/depreciation

 

 

(33,519,448

)

 

(48,501,221

)

 

(24,020,671

)

 

(25,348,837

)

 

(15,621,369

)

 

(5,181,482

)

 

(39,906,760

)

 

(27,905,564

)

 

 

























Net Assets Applicable to Common Shareholders

 

$

152,960,546

 

$

221,899,455

 

$

287,078,482

 

$

184,684,977

 

$

139,377,005

 

$

158,061,021

 

$

496,246,510

 

$

243,583,061

 

 

 

























Net asset value per common share5,6

 

$

7.67

 

$

10.59

 

$

9.77

 

$

13.27

 

$

12.47

 

$

12.27

 

$

13.05

 

$

11.95

 

 

 

























1  Investments at cost — unaffiliated

 

$

190,876,429

 

$

275,050,319

 

$

506,917,541

 

$

332,855,996

 

$

242,212,178

 

$

268,940,314

 

$

866,045,417

 

$

458,763,614

 

 

 

























2  Investments at cost — affiliated

 

$

100,006

 

$

2,001,534

 

$

3,302,493

 

$

1,910,337

 

$

112,826

 

$

15,326,703

 

$

403,856

 

 

 

 

 

























3  Represents short-term floating rate certificates issued by tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4  Preferred Shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Par value $0.025 per share

 

 

 

 

 

 

5,097

 

 

 

 

 

 

 

 

 

 

 

 

 

























Par value $0.05 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,653

 

 

 

























Par value $0.10 per share

 

 

 

 

 

 

1,257

 

 

3,677

 

 

2,440

 

 

3,768

 

 

11,487

 

 

1,379

 

 

 

























5  Common Shares outstanding, $0.10 par value

 

 

19,931,713

 

 

20,960,583

 

 

29,369,874

 

 

13,913,010

 

 

11,173,277

 

 

12,886,200

 

 

38,034,934

 

 

20,385,281

 

 

 

























6  Common Shares authorized

 

 

150 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

200 Million

 

 

 


























 

 

 

See Notes to Financial Statements.

 


52

ANNUAL REPORT

APRIL 30, 2009



 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
Apex Municipal
Fund, Inc.
(APX)

 

BlackRock
MuniAssets
Fund, Inc.
(MUA)

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

 

 


 


 


 

 

 

Period
July 1,
2008 to
April 30,
2009

 

Year
Ended
June 30,
2008

 

Period
June 1,
2008 to
April 30,
2009

 

Year
Ended
May 31,
2008

 

Period
February 1,
2009 to
April 30,
2009

 

Year
Ended
January 31,
2009

 



Investment Income

 



Interest

 

$

10,653,508

 

$

12,228,923

 

$

16,610,670

 

$

17,963,762

 

$

5,932,024

 

$

26,490,337

 

Income — affiliated

 

 

31,470

 

 

43,703

 

 

106,721

 

 

107,637

 

 

196,216

 

 

276,519

 

 

 



















Total income

 

 

10,684,978

 

 

12,272,626

 

 

16,717,391

 

 

18,071,399

 

 

6,128,240

 

 

26,766,856

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Expenses

 





















Investment advisory

 

 

891,184

 

 

1,229,902

 

 

1,214,568

 

 

1,523,956

 

 

582,438

 

$

2,511,591

 

Professional

 

 

56,370

 

 

61,732

 

 

39,829

 

 

51,074

 

 

61,979

 

 

161,347

 

Commissions for Preferred Shares

 

 

 

 

 

 

 

 

 

 

61,862

 

 

410,987

 

Accounting services

 

 

44,259

 

 

79,184

 

 

76,575

 

 

99,443

 

 

31,855

 

 

127,598

 

Printing

 

 

36,062

 

 

41,323

 

 

49,099

 

 

43,250

 

 

22,063

 

 

51,643

 

Transfer agent

 

 

21,630

 

 

15,112

 

 

28,725

 

 

5,881

 

 

18,261

 

 

53,722

 

Officer and Directors

 

 

16,076

 

 

17,547

 

 

26,417

 

 

21,971

 

 

10,468

 

 

32,017

 

Custodian

 

 

9,944

 

 

12,232

 

 

12,377

 

 

16,758

 

 

6,036

 

 

28,196

 

Registration

 

 

3,169

 

 

9,238

 

 

3,055

 

 

8,868

 

 

3,338

 

 

7,127

 

Miscellaneous

 

 

39,252

 

 

50,513

 

 

44,832

 

 

53,838

 

 

23,896

 

 

76,388

 

 

 



















Total expenses excluding interest expense and fees

 

 

1,117,946

 

 

1,516,783

 

 

1,495,477

 

 

1,825,039

 

 

822,196

 

 

3,460,616

 

Interest expense and fees1

 

 

85,062

 

 

85,497

 

 

129,170

 

 

107,312

 

 

153,610

 

 

1,686,006

 

 

 



















Total expenses

 

 

1,203,008

 

 

1,602,280

 

 

1,624,647

 

 

1,932,351

 

 

975,806

 

 

5,146,622

 

Less fees waived by advisor

 

 

(3,663

)

 

(3,446

)

 

(9,317

)

 

(7,246

)

 

(6,232

)

 

(27,586

)

Less fees paid indirectly

 

 

 

 

 

 

(10

)

 

 

 

 

 

(69

)

 

 



















Total expenses after fees waived and paid indirectly

 

 

1,199,345

 

 

1,598,834

 

 

1,615,320

 

 

1,925,105

 

 

969,574

 

 

5,118,967

 

 

 



















Net investment income

 

 

9,485,633

 

 

10,673,792

 

 

15,102,071

 

 

16,146,294

 

 

5,158,666

 

 

21,647,889

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Realized and Unrealized Gain (Loss)

 





















Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(1,901,804

)

 

(111,429

)

 

(1,285,245

)

 

(1,634,734

)

 

(964,506

)

 

(3,413,933

)

Futures and forward interest rate swaps

 

 

 

 

227,869

 

 

259,342

 

 

127,102

 

 

 

 

(2,476,627

)

 

 



















 

 

 

(1,901,804

)

 

116,440

 

 

(1,025,903

)

 

(1,507,632

)

 

(964,506

)

 

(5,890,560

)

 

 



















Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(27,472,314

)

 

(15,672,274

)

 

(44,534,083

)

 

(20,157,187

)

 

18,357,213

 

 

(54,838,454

)

Futures and forward interest rate swaps

 

 

 

 

178,595

 

 

(115,218

)

 

171,992

 

 

 

 

805,532

 

 

 



















 

 

 

(27,472,314

)

 

(15,493,679

)

 

(44,649,301

)

 

(19,985,195

)

 

18,357,213

 

 

(54,032,922

)

 

 



















Total realized and unrealized gain (loss)

 

 

(29,374,118

)

 

(15,377,239

)

 

(45,675,204

)

 

(21,492,827

)

 

17,392,707

 

 

(59,923,482

)

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Dividends to Preferred Shareholders From

 





















Net investment income

 

 

 

 

 

 

 

 

 

 

(373,520

)

 

(5,591,529

)

 

 



















Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

(19,888,485

)

$

(4,703,447

)

$

(30,573,133

)

$

(5,346,533

)

$

22,177,853

 

$

(43,867,122

)

 

 




















 

 

Related to tender option bond trusts.


 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

53



 


 

Statements of Operations (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

 


 


 


 


 



 

 

Year
Ended
April 30,
2009

 

Period
August 1,
2008 to
April 30,
2009

 

Year
Ended
July 31,
2008

 

Year
Ended
April 30,
2009

 

Period
June 1,
2008 to
April 30,
2009

 

Year
Ended
May 31,
2008

 

Period
November 1,
2008 to
April 30,
2009

 

Year
Ended
October 31,
2008

 



Investment Income

 



Interest

 

$

17,994,259

 

$

9,595,636

 

$

14,179,423

 

$

14,406,319

 

$

39,351,496

 

$

45,410,403

 

$

12,561,027

 

$

27,492,399

 

Income — affiliated

 

 

35,142

 

 

27,300

 

 

315

 

 

99,242

 

 

225,843

 

 

269

 

 

 

 

 

 

 

























Total income

 

 

18,029,401

 

 

9,622,936

 

 

14,179,738

 

 

14,505,561

 

 

39,577,339

 

 

45,410,672

 

 

12,561,027

 

 

27,492,399

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Expenses

 



Investment advisory

 

 

1,742,847

 

 

921,261

 

 

1,374,513

 

 

1,575,653

 

 

4,214,114

 

 

4,863,950

 

 

1,039,681

 

 

2,340,694

 

Commissions for Preferred Shares

 

 

210,037

 

 

93,952

 

 

215,176

 

 

219,414

 

 

571,370

 

 

814,748

 

 

128,944

 

 

431,016

 

Professional

 

 

124,769

 

 

71,436

 

 

100,169

 

 

124,401

 

 

212,167

 

 

165,596

 

 

69,388

 

 

144,766

 

Accounting services

 

 

85,960

 

 

48,925

 

 

94,583

 

 

81,992

 

 

180,910

 

 

226,158

 

 

48,022

 

 

145,530

 

Transfer agent

 

 

42,648

 

 

24,611

 

 

24,584

 

 

38,246

 

 

64,462

 

 

44,553

 

 

26,290

 

 

19,812

 

Printing

 

 

30,701

 

 

21,583

 

 

19,771

 

 

27,485

 

 

66,204

 

 

56,577

 

 

23,075

 

 

38,329

 

Officer and Directors

 

 

22,753

 

 

13,538

 

 

19,375

 

 

18,953

 

 

52,575

 

 

42,165

 

 

16,676

 

 

29,230

 

Custodian

 

 

17,327

 

 

9,931

 

 

15,781

 

 

16,841

 

 

35,114

 

 

44,603

 

 

9,780

 

 

28,609

 

Registration

 

 

9,191

 

 

3,055

 

 

8,884

 

 

9,166

 

 

12,467

 

 

13,270

 

 

3,177

 

 

9,083

 

Miscellaneous

 

 

70,761

 

 

39,473

 

 

64,352

 

 

68,092

 

 

95,629

 

 

119,268

 

 

34,789

 

 

99,925

 

 

 

























Total expenses excluding interest expense and fees

 

 

2,356,994

 

 

1,247,765

 

 

1,937,188

 

 

2,180,243

 

 

5,505,012

 

 

6,390,888

 

 

1,399,822

 

 

3,286,994

 

Interest expense and fees1

 

 

726,765

 

 

384,908

 

 

609,210

 

 

740,357

 

 

1,033,073

 

 

976,191

 

 

284,301

 

 

1,434,369

 

 

 

























Total expenses

 

 

3,083,759

 

 

1,632,673

 

 

2,546,398

 

 

2,920,600

 

 

6,538,085

 

 

7,367,079

 

 

1,684,123

 

 

4,721,363

 

Less fees waived by advisor

 

 

(7,584

)

 

(4,942

)

 

(22

)

 

(360,409

)

 

(874,243

)

 

(1,326,562

)

 

 

 

 

Less fees paid indirectly

 

 

 

 

 

 

 

 

 

 

(8

)

 

(111

)

 

 

 

 

 

 

























Total expenses after fees waived and paid indirectly

 

 

3,076,175

 

 

1,627,731

 

 

2,546,376

 

 

2,560,191

 

 

5,663,834

 

 

6,040,406

 

 

1,684,123

 

 

4,721,363

 

 

 

























Net investment income

 

 

14,953,226

 

 

7,995,205

 

 

11,633,362

 

 

11,945,370

 

 

33,913,505

 

 

39,370,266

 

 

10,876,904

 

 

22,771,036

 

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Realized and Unrealized Gain (Loss)

 



























Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

934,450

 

 

(653,515

)

 

1,098,534

 

 

(8,311,813

)

 

(6,621,611

)

 

(594,822

)

 

700,399

 

 

(4,694,610

)

Futures and forward interest rate swaps

 

 

(137,764

)

 

 

 

(31,587

)

 

 

 

 

 

(400,021

)

 

 

 

(1,192,179

)

 

 

























 

 

 

796,686

 

 

(653,515

)

 

1,066,947

 

 

(8,311,813

)

 

(6,621,611

)

 

(994,843

)

 

700,399

 

 

(5,886,789

)

 

 

























Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(27,850,295

)

 

(12,946,433

)

 

(13,877,342

)

 

(7,075,567

)

 

(47,262,844

)

 

(22,841,249

)

 

18,630,931

 

 

(65,443,827

)

Futures and forward interest rate swaps

 

 

 

 

 

 

66,099

 

 

 

 

 

 

96,795

 

 

 

 

427,302

 

 

 

























 

 

 

(27,850,295

)

 

(12,946,433

)

 

(13,811,243

)

 

(7,075,567

)

 

(47,262,844

)

 

(22,744,454

)

 

18,630,931

 

 

(65,016,525

)

 

 

























Total realized and unrealized gain (loss)

 

 

(27,053,609

)

 

(13,599,948

)

 

(12,744,296

)

 

(15,387,380

)

 

(53,884,455

)

 

(23,739,297

)

 

19,331,330

 

 

(70,903,314

)

 

 

























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Dividends and Distributions to Preferred Shareholders From

 



Net investment income

 

 

(2,473,001

)

 

(1,093,524

)

 

(2,964,352

)

 

(2,507,663

)

 

(8,817,093

)

 

(12,598,505

)

 

(1,057,535

)

 

(6,547,531

)

Net realized gain

 

 

(75,129

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

























Total dividends and distributions to Preferred Shareholders

 

 

(2,548,130

)

 

(1,093,524

)

 

(2,964,352

)

 

(2,507,663

)

 

(8,817,093

)

 

(12,598,505

)

 

(1,057,535

)

 

(6,547,531

)

 

 

























Net Increase (Decrease) in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

(14,648,513

)

$

(6,698,267

)

$

(4,075,286

)

$

(5,949,673

)

$

(28,788,043

)

$

3,032,464

 

$

29,150,699

 

$

(54,679,809

)

 

 


























 

 

Related to tender option bond trusts.


 

 

 

See Notes to Financial Statements.

 


54

ANNUAL REPORT

APRIL 30, 2009



 


 

Statements of Changes in Net Assets


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Apex
Municipal Fund, Inc. (APX)

 

BlackRock MuniAssets
Fund, Inc. (MUA)

 

 

 


 


 

 

 

Period
July 1,
2008 to
April 30,
2009

 

Year Ended
June 30,

 

Period
June 1,
2008 to
April 30,
2009

 

Year Ended
May 31,

 

 

 

 

 

 

 

 

 


 

 


 

Increase (Decrease) in Net Assets:

 

 

2008

 

2007

 

 

2008

 

2007

 





















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

9,485,633

 

$

10,673,792

 

$

11,385,891

 

$

15,102,071

 

$

16,146,294

 

$

16,973,304

 

Net realized gain (loss)

 

 

(1,901,804

)

 

116,440

 

 

(3,091,653

)

 

(1,025,903

)

 

(1,507,632

)

 

(5,079,543

)

Net change in unrealized appreciation/depreciation

 

 

(27,472,314

)

 

(15,493,679

)

 

4,418,732

 

 

(44,649,301

)

 

(19,985,195

)

 

9,799,343

 

 

 



















Net increase (decrease) in net assets resulting from operations

 

 

(19,888,485

)

 

(4,703,447

)

 

12,712,970

 

 

(30,573,133

)

 

(5,346,533

)

 

21,693,104

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Dividends and Distributions to Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

 

(9,259,509

)

 

(11,460,645

)

 

(11,596,069

)

 

(15,527,663

)

 

(17,002,831

)

 

(17,339,322

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(65,858

)

 

 

 

 



















Decrease in net assets resulting from dividends and distributions to shareholders

 

 

(9,259,509

)

 

(11,460,645

)

 

(11,596,069

)

 

(15,527,663

)

 

(17,068,689

)

 

(17,339,322

)

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Reinvestment of dividends

 

 

452,841

 

 

993,437

 

 

1,063,048

 

 

1,086,978

 

 

1,961,372

 

 

2,220,383

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total increase (decrease) in net assets

 

 

(28,695,153

)

 

(15,170,655

)

 

2,179,949

 

 

(45,013,818

)

 

(20,453,850

)

 

6,574,165

 

Beginning of period

 

 

181,655,699

 

 

196,826,354

 

 

194,646,405

 

 

266,913,273

 

 

287,367,123

 

 

280,792,958

 

 

 



















End of period

 

$

152,960,546

 

$

181,655,699

 

$

196,826,354

 

$

221,899,455

 

$

266,913,273

 

$

287,367,123

 

 

 



















End of period undistributed net investment income

 

$

1,296,579

 

$

1,093,688

 

$

1,880,620

 

$

1,210,315

 

$

1,666,151

 

$

2,522,745

 

 

 




















 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

55



 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
MuniEnhanced Fund, Inc. (MEN)

 

BlackRock
MuniHoldings Fund, Inc. (MHD)

 

 

 


 


 

Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 

Period
February 1,
2009 to
April 30,
2009

 

Year Ended
January 31,

 

Year Ended
April 30,

 

 


 


 

 

2009

 

2008

 

2009

 

2008

 


















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

$

5,158,666

 

$

21,647,889

 

$

22,814,801

 

$

14,953,226

 

$

16,092,295

 

Net realized gain (loss)

 

 

(964,506

)

 

(5,890,560

)

 

3,625,564

 

 

796,686

 

 

618,266

 

Net change in unrealized appreciation/depreciation

 

 

18,357,213

 

 

(54,032,922

)

 

(15,876,207

)

 

(27,850,295

)

 

(17,097,855

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(373,520

)

 

(5,591,529

)

 

(6,935,161

)

 

(2,473,001

)

 

(4,329,651

)

Net realized gain

 

 

 

 

 

 

 

 

(75,129

)

 

(478,218

)

 

 
















Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

22,177,853

 

 

(43,867,122

)

 

3,628,997

 

 

(14,648,513

)

 

(5,195,163

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

 

(3,788,714

)

 

(15,154,855

)

 

(15,154,855

)

 

(11,874,169

)

 

(11,848,523

)

Net realized gain

 

 

 

 

 

 

 

 

(221,635

)

 

(1,156,764

)

 

 
















Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(3,788,714

)

 

(15,154,855

)

 

(15,154,855

)

 

(12,095,804

)

 

(13,005,287

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Reinvestment of common dividends

 

 

 

 

 

 

 

 

 

 

253,398

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

18,389,139

 

 

(59,021,977

)

 

(11,525,858

)

 

(26,744,317

)

 

(17,947,052

)

Beginning of period

 

 

268,689,343

 

 

327,711,320

 

 

339,237,178

 

 

211,429,294

 

 

229,376,346

 

 

 
















End of period

 

$

287,078,482

 

$

268,689,343

 

$

327,711,320

 

$

184,684,977

 

$

211,429,294

 

 

 
















End of period undistributed net investment income

 

$

2,930,536

 

$

2,372,225

 

$

2,111,950

 

$

2,334,885

 

$

1,608,417

 

 

 

















 

 

 

See Notes to Financial Statements.

 




56

ANNUAL REPORT

APRIL 30, 2009



 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
MuniHoldings Fund II, Inc. (MUH)

 

BlackRock MuniHoldings
Insured Fund, Inc. (MUS)

 

 

 


 


 

Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 

Period
August 1,
2008 to
April 30,
2009

 

Year Ended
January 31,

 

Year Ended
April 30,

 

 

 

 

 

 

 


 


 

 

 

2009

 

2008

 

2009

 

2008

 













Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

$

7,995,205

 

$

11,633,362

 

$

11,705,163

 

$

11,945,370

 

$

13,564,913

 

Net realized gain (loss)

 

 

(653,515

)

 

1,066,947

 

 

1,636,714

 

 

(8,311,813

)

 

(2,120,717

)

Change in net unrealized appreciation/depreciation

 

 

(12,946,433

)

 

(13,811,243

)

 

(2,106,859

)

 

(7,075,567

)

 

(9,018,484

)

Dividends to Preferred Shareholders from net investment income

 

 

(1,093,524

)

 

(2,964,352

)

 

(3,062,036

)

 

(2,507,663

)

 

(4,926,956

)

 

 
















Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(6,698,267

)

 

(4,075,286

)

 

8,172,982

 

 

(5,949,673

)

 

(2,501,244

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

 

(6,557,719

)

 

(8,477,052

)

 

(8,623,062

)

 

(7,499,768

)

 

(7,628,630

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Reinvestment of common dividends

 

 

 

 

 

 

70,232

 

 

 

 

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total decrease in net assets applicable to Common Shareholders

 

 

(13,255,986

)

 

(12,552,338

)

 

(379,848

)

 

(13,449,441

)

 

(10,129,874

)

Beginning of period

 

 

152,632,991

 

 

165,185,329

 

 

165,565,177

 

 

171,510,462

 

 

181,640,336

 

 

 
















End of period

 

$

139,377,005

 

$

152,632,991

 

$

165,185,329

 

$

158,061,021

 

$

171,510,462

 

 

 
















End of period undistributed net investment income

 

$

2,284,534

 

$

1,985,174

 

$

1,645,606

 

$

2,284,843

 

$

1,070,407

 

 

 

















 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

57



 


 

Statements of Changes in Net Assets (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Muni Intermediate
Duration Fund, Inc. (MUI)

 

BlackRock MuniVest
Fund II, Inc. (MVT)

 

Increase (Decrease) in Net Assets
Applicable to Common Shareholders:

 


 


 

 

Period
June 1,
2008 to
April 30,
2009

 

Year Ended
May 31,

 

Period
November 1,
2008 to
April 30,
2009

 

Year Ended
October 31,

 

 

 

 

 

 


 

 


 

 

2008

 

2007

 

 

2008

 

2007

 





















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

33,913,505

 

$

39,370,266

 

$

38,972,329

 

$

10,876,904

 

$

22,771,036

 

$

23,451,287

 

Net realized gain (loss)

 

 

(6,621,611

)

 

(994,843

)

 

(139,587

)

 

700,399

 

 

(5,886,789

)

 

2,851,750

 

Change in net unrealized appreciation/depreciation

 

 

(47,262,844

)

 

(22,744,454

)

 

7,090,554

 

 

18,630,931

 

 

(65,016,525

)

 

(19,973,083

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(8,817,093

)

 

(12,598,505

)

 

(10,462,698

)

 

(1,057,535

)

 

(6,547,531

)

 

(6,403,711

)

Net realized gains

 

 

 

 

 

 

(1,446,608

)

 

 

 

 

 

 

 

 



















Net increase (decrease) in net assets to Common Shareholders resulting from operations

 

 

(28,788,043

)

 

3,032,464

 

 

34,013,990

 

 

29,150,699

 

 

(54,679,809

)

 

(73,757

)

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

 

(24,380,887

)

 

(27,841,571

)

 

(28,297,991

)

 

(8,777,352

)

 

(17,375,256

)

 

(17,386,821

)

Net realized gain

 

 

 

 

 

 

(4,525,473

)

 

 

 

 

 

 

 

 



















Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(24,380,887

)

 

(27,841,571

)

 

(32,823,464

)

 

(8,777,352

)

 

(17,375,256

)

 

(17,386,821

)

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Reinvestment of common dividends

 

 

 

 

 

 

 

 

 

 

1,428,596

 

 

1,322,155

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

(53,168,930

)

 

(24,809,107

)

 

1,190,526

 

 

20,373,347

 

 

(70,626,469

)

 

(16,138,423

)

Beginning of period

 

 

549,415,440

 

 

574,224,547

 

 

573,034,021

 

 

223,209,714

 

 

293,836,183

 

 

309,974,606

 

 

 



















End of period

 

$

496,246,510

 

$

549,415,440

 

$

574,224,547

 

$

243,583,061

 

$

223,209,714

 

$

293,836,183

 

 

 



















End of period undistributed net investment income

 

$

4,159,528

 

$

3,452,820

 

$

4,522,630

 

$

2,348,021

 

$

1,127,498

 

$

2,310,698

 

 

 




















 

 

 

See Notes to Financial Statements.

 




58

ANNUAL REPORT

APRIL 30, 2009



 


 

Statements of Cash Flows


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
MuniEnhanced
Fund, Inc.
(MEN)

 

BlackRock
MuniHoldings
Fund, Inc.
(MHD)

 

BlackRock
MuniHoldings
Fund II, Inc.
(MUH)

 

BlackRock
MuniHoldings
Insured
Fund, Inc.
(MUS)

 

BlackRock
MuniVest
Fund II, Inc.
(MVT)

 

 

 


 


 


 


 



 

 

Year
Ended
January 31,
2009

 

Year
Ended
April 30,
2009

 

Period
August 1,
2008 to
April 30,
2009

 

Year
Ended
April 30,
2009

 

Period
November 1,
2008 to
April 30,
2009

 













Cash Provided by Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net increase (decrease) in net assets resulting from operations, excluding dividends and distributions to Preferred Shareholders

 

$

(38,275,593

)

(12,100,383

)

$

(5,604,743

)

$

(3,442,010

)

$

30,208,234

 

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in receivables

 

 

676,229

 

 

(67,794

)

 

(280,364

)

 

260,850

 

 

(733,675

)

(Increase) decrease in prepaid expenses and other assets

 

 

(13,444

)

 

(2,892

)

 

(10,326

)

 

(3,156

)

 

4,130

 

Increase (decrease) in liabilities

 

 

(204,272

)

 

(39,746

)

 

(110,287

)

 

32,230

 

 

(275,087

)

Net realized and unrealized gain (loss)

 

 

57,446,855

 

 

26,915,845

 

 

13,599,948

 

 

15,387,380

 

 

(19,331,330

)

Amortization of premium and discount on investments

 

 

(886,036

)

 

602,226

 

 

186,160

 

 

491,777

 

 

527,944

 

Proceeds from sales of long-term investments

 

 

188,640,839

 

 

82,799,352

 

 

51,540,260

 

 

126,750,712

 

 

46,629,432

 

Net proceeds from sales (net purchases) of short-term investments

 

 

(24,602,002

)

 

(201,366

)

 

298,896

 

 

(15,565,882

)

 

38,330,000

 

Purchases of long-term investments

 

 

(121,956,804

)

 

(61,249,020

)

 

(36,372,029

)

 

(94,040,772

)

 

(79,941,661

)

 

 
















Net cash provided by operating activities

 

 

60,825,772

 

 

36,656,222

 

 

23,247,515

 

 

29,871,129

 

 

15,417,987

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash Used for Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Payments on redemption of Preferred Shares

 

 

(28,150,000

)

 

(33,075,000

)

 

 

 

(39,800,000

)

 

 

Cash receipts from trust certificates

 

 

51,158,202

 

 

40,944,256

 

 

5,770,000

 

 

42,798,667

 

 

 

Cash payments for trust certificates

 

 

(62,999,454

)

 

(28,186,300

)

 

(20,043,275

)

 

(22,899,225

)

 

(4,851,111

)

Cash dividends and distributions paid to Common Shareholders

 

 

(15,154,855

)

 

(12,095,805

)

 

(6,557,719

)

 

(7,499,768

)

 

(8,777,352

)

Cash dividends and distributions paid to Preferred Shareholders

 

 

(5,711,648

)

 

(2,580,354

)

 

(1,107,370

)

 

(2,550,221

)

 

(1,112,333

)

Increase in bank overdraft

 

 

 

 

 

 

 

 

4,415

 

 

 

 

 
















Net cash used for financing activities

 

 

(60,857,755

)

 

(34,993,203

)

 

(21,938,364

)

 

(29,946,132

)

 

(14,740,796

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net increase (decrease) in cash

 

 

(31,983

)

 

1,663,019

 

 

1,309,151

 

 

(75,003

)

 

677,191

 

Cash at beginning of period

 

 

83,648

 

 

95,042

 

 

59,326

 

 

75,003

 

 

317,257

 

 

 
















Net cash at end of period

 

$

51,665

 

$

1,758,061

 

$

1,368,477

 

 

 

$

994,448

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Cash paid during the period for interest

 

$

1,836,345

 

$

715,497

 

$

453,934

 

$

659,765

 

$

495,658

 

 

 

















 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

59



 

 



 

 

Financial Highlights

BlackRock Apex Municipal Fund, Inc. (APX)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
July 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30,

 

 

 

 



 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

9.14

 

$

9.95

 

$

9.90

 

$

9.82

 

$

9.13

 

$

8.99

 

 

 



















Net investment income1

 

 

0.48

 

 

0.54

 

 

0.58

 

 

0.58

 

 

0.58

 

 

0.60

 

Net realized and unrealized gain (loss)

 

 

(1.48

)

 

(0.77

)

 

0.06

 

 

0.08

 

 

0.69

 

 

0.11

 

 

 



















Net increase (decrease) from investment operations

 

 

(1.00

)

 

(0.23

)

 

0.64

 

 

0.66

 

 

1.27

 

 

0.71

 

 

 



















Dividends and distributions from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.47

)

 

(0.58

)

 

(0.59

)

 

(0.58

)

 

(0.58

)

 

(0.57

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(0.00

)2

 

 



















Total dividends and distributions

 

 

(0.47

)

 

(0.58

)

 

(0.59

)

 

(0.58

)

 

(0.58

)

 

(0.57

)

 

 



















Net asset value, end of period

 

$

7.67

 

$

9.14

 

$

9.95

 

$

9.90

 

$

9.82

 

$

9.13

 

 

 



















Market price, end of period

 

$

7.72

 

$

9.28

 

$

10.23

 

$

10.25

 

$

9.48

 

$

8.26

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(10.81

)%4

 

(2.40

)%

 

6.48

%

 

7.00

%

 

14.67

%

 

8.64

%

 

 



















Based on market price

 

 

(11.58

)%4

 

(3.61

)%

 

5.73

%

 

14.76

%

 

22.36

%

 

4.20

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses after fees waived and excluding interest expense and fees5

 

 

0.84

%6

 

0.80

%

 

0.80

%

 

0.80

%

 

0.80

%

 

0.79

%

 

 



















Total expenses after fees waived

 

 

0.91

%6

 

0.84

%

 

0.80

%

 

0.80

%

 

0.80

%

 

0.79

%

 

 



















Total expenses

 

 

0.91

%6

 

0.85

%

 

0.80

%

 

0.81

%

 

0.80

%

 

0.79

%

 

 



















Net investment income

 

 

7.16

%6

 

5.64

%

 

5.75

%

 

5.83

%

 

6.11

%

 

6.52

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets, end of period (000)

 

$

152,961

 

$

181,656

 

$

196,826

 

$

194,646

 

$

192,475

 

$

178,983

 

 

 



















Portfolio turnover

 

 

20

%

 

25

%

 

22

%

 

19

%

 

22

%

 

19

%

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Interest expense and fees related to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

6

Annualized.


 

 

 

See Notes to Financial Statements.

 




60

ANNUAL REPORT

APRIL 30, 2009



 

 



 

 

Financial Highlights

BlackRock MuniAssets Fund, Inc. (MUA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
June 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended May 31,

 

 

 


 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

12.79

 

$

13.87

 

$

13.65

 

$

13.40

 

$

12.36

 

$

11.94

 

 

 



















Net investment income1

 

 

0.72

 

 

0.78

 

 

0.82

 

 

0.81

 

 

0.81

 

 

0.83

 

Net realized and unrealized gain (loss)

 

 

(2.18

)

 

(1.04

)

 

0.24

 

 

0.27

 

 

1.04

 

 

0.38

 

 

 



















Net increase (decrease) from investment operations

 

 

(1.46

)

 

(0.26

)

 

1.06

 

 

1.08

 

 

1.85

 

 

1.21

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.74

)

 

(0.82

)

 

(0.84

)

 

(0.83

)

 

(0.81

)

 

(0.78

)

Net realized gain

 

 

 

 

(0.00

)2

 

 

 

 

 

 

 

(0.01

)

 

 



















Total dividends and distributions

 

 

(0.74

)

 

(0.82

)

 

(0.84

)

 

(0.83

)

 

(0.81

)

 

(0.79

)

 

 



















Net asset value, end of period

 

$

10.59

 

$

12.79

 

$

13.87

 

$

13.65

 

$

13.40

 

$

12.36

 

 

 



















Market price, end of period

 

$

10.91

 

$

13.35

 

$

15.29

 

$

14.13

 

$

13.27

 

$

11.38

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(11.29

)%4

 

(1.90

)%

 

7.72

%

 

8.31

%

 

15.65

%

 

10.74

%

 

 



















Based on market price

 

 

(12.45

)%4

 

(7.12

)%

 

14.71

%

 

13.22

%

 

24.39

%

 

2.22

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses after waiver and fees paid indirectly and excluding interest expense and fees5

 

 

0.70

%6

 

0.66

%

 

0.68

%

 

0.68

%

 

0.67

%

 

0.67

%

 

 



















Total expenses after waiver and fees paid indirectly

 

 

0.76

%6

 

0.69

%

 

0.68

%

 

0.68

%

 

0.67

%

 

0.67

%

 

 



















Total expenses

 

 

0.77

%6

 

0.70

%

 

0.68

%

 

0.68

%

 

0.67

%

 

0.67

%

 

 



















Net investment income

 

 

7.13

%6

 

5.81

%

 

5.91

%

 

5.97

%

 

6.30

%

 

6.71

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets, end of period (000)

 

$

221,899

 

$

266,913

 

$

287,367

 

$

280,793

 

$

273,382

 

$

252,203

 

 

 



















Portfolio turnover

 

 

23

%

 

23

%

 

25

%

 

17

%

 

20

%

 

19

%

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Interest expense and fees related to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

6

Annualized.


 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

61



 

 


 

Financial Highlights

BlackRock MuniEnhanced Fund, Inc. (MEN)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
February 1,
2009 to
April 30,
2009

 

 

 

 

 

Year Ended January 31,

 



2009

 

2008

 

2007

 

2006

 

2005

 















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

9.15

 

$

11.16

 

$

11.55

 

$

11.52

 

$

11.85

 

$

11.83

 

 

 



















Net investment income1

 

 

0.18

 

 

0.72

 

 

0.78

 

 

0.76

 

 

0.77

 

 

0.79

 

Net realized and unrealized gain (loss)

 

 

0.58

 

 

(2.02

)

 

(0.41

)

 

0.06

 

 

(0.22

)

 

0.05

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.01

)

 

(0.19

)

 

(0.24

)

 

(0.22

)

 

(0.16

)

 

(0.07

)

 

 



















Net increase (decrease) from investment operations

 

 

0.75

 

 

(1.49

)

 

0.13

 

 

0.60

 

 

0.39

 

 

0.77

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.13

)

 

(0.52

)

 

(0.52

)

 

(0.57

)

 

(0.72

)

 

(0.73

)

 

 



















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.02

)

 

 



















Net asset value, end of period

 

$

9.77

 

$

9.15

 

$

11.16

 

$

11.55

 

$

11.52

 

$

11.85

 

 

 



















Market price, end of period

 

$

8.88

 

$

8.31

 

$

10.66

 

$

10.77

 

$

11.03

 

$

10.93

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

8.40

%3

 

(13.19

)%

 

1.44

%

 

5.66

%

 

3.63

%

 

7.20

%

 

 



















Based on market price

 

 

8.48

%3

 

(17.46

)%

 

3.92

%

 

2.90

%

 

7.58

%

 

4.25

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses after fees waived and paid indirectly and excluding interest expense and fees4,5

 

 

1.22

%6

 

1.18

%

 

1.08

%

 

1.08

%

 

1.07

%

 

1.01

%

 

 



















Total expenses after fees waived and paid indirectly5

 

 

1.45

%6

 

1.76

%

 

1.72

%

 

1.69

%

 

1.51

%

 

1.32

%

 

 



















Total expenses5

 

 

1.46

%6

 

1.77

%

 

1.72

%

 

1.69

%

 

1.51

%

 

1.32

%

 

 



















Net investment income5

 

 

7.72

%6

 

7.43

%

 

6.85

%

 

6.57

%

 

6.63

%

 

6.80

%

 

 



















Dividends to Preferred Shareholders

 

 

0.56

%6

 

1.92

%

 

2.08

%

 

1.88

%

 

1.34

%

 

0.59

%

 

 



















Net investment income to Common Shareholders

 

 

7.16

%6

 

5.51

%

 

4.77

%

 

4.69

%

 

5.29

%

 

6.21

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

287,078

 

$

268,689

 

$

327,711

 

$

339,237

 

$

338,450

 

$

348,027

 

 

 



















Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

158,850

 

$

158,850

 

$

187,000

 

$

187,000

 

$

187,000

 

$

187,000

 

 

 



















Portfolio turnover

 

 

6

%

 

24

%

 

18

%

 

31

%

 

22

%

 

33

%

 

 



















Asset coverage per Preferred Share, end of period

 

$

70,185

 

$

67,294

 

$

68,834

7

$

70,373

7

$

70,262

7

$

71,538

7

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Interest expense and fees related to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

7

Amounts have been recalculated to conform with current presentation.


 

 

 

See Notes to Financial Statements.

 




62

ANNUAL REPORT

APRIL 30, 2009



 

 


 

Financial Highlights

BlackRock MuniHoldings Fund, Inc. (MHD)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 


 

 

2009

 

2008

 

2007

 

2006

 

2005

 













Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net asset value, beginning of year

 

$

15.20

 

$

16.51

 

$

16.14

 

$

16.31

 

$

15.54

 

 

 
















Net investment income1

 

 

1.07

 

 

1.16

 

 

1.17

 

 

1.16

 

 

1.20

 

Net realized and unrealized gain (loss)

 

 

(1.94

)

 

(1.20

)

 

0.42

 

 

(0.00

)2

 

0.84

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.18

)

 

(0.31

)

 

(0.32

)

 

(0.23

)

 

(0.12

)

Net realized gain

 

 

(0.01

)

 

(0.03

)

 

 

 

 

 

 

 

 
















Net increase (decrease) from investment operations

 

 

(1.06

)

 

(0.38

)

 

1.27

 

 

0.93

 

 

1.92

 

 

 
















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.85

)

 

(0.85

)

 

(0.90

)

 

(1.08

)

 

(1.15

)

Net realized gain

 

 

(0.02

)

 

(0.08

)

 

 

 

 

 

 

 

 
















Total dividends and distributions to Common Shareholders

 

 

(0.87

)

 

(0.93

)

 

(0.90

)

 

(1.08

)

 

(1.15

)

 

 
















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

(0.02

)

 

 

 

 
















Net asset value, end of year

 

$

13.27

 

$

15.20

 

$

16.51

 

$

16.14

 

$

16.31

 

 

 
















Market price, end of year

 

$

11.97

 

$

14.77

 

$

16.49

 

$

16.20

 

$

16.12

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Based on net asset value

 

 

(6.24

)%

 

(2.08

)%

 

8.06

%

 

5.69

%

 

12.95

%

 

 
















Based on market price

 

 

(12.97

)%

 

(4.74

)%

 

7.52

%

 

7.34

%

 

20.22

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total expenses after fees waived excluding interest expense and fees4,5

 

 

1.25

%

 

1.20

%

 

1.17

%

 

1.15

%

 

1.13

%

 

 
















Total expenses after fees waived5

 

 

1.64

%

 

1.56

%

 

1.54

%

 

1.30

%

 

1.15

%

 

 
















Total expenses5

 

 

1.65

%

 

1.56

%

 

1.54

%

 

1.30

%

 

1.15

%

 

 
















Net investment income5

 

 

7.98

%

 

7.27

%

 

7.14

%

 

7.15

%

 

7.61

%

 

 
















Dividends to Preferred Shareholders

 

 

1.32

%

 

1.96

%

 

1.93

%

 

1.45

%

 

0.74

%

 

 
















Net investment income to Common Shareholders

 

 

6.66

%

 

5.31

%

 

5.20

%

 

5.70

%

 

6.87

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net assets applicable to Common Shareholders, end of year (000)

 

$

184,685

 

$

211,429

 

$

229,376

 

$

223,658

 

$

225,218

 

 

 
















Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

91,925

 

$

125,000

 

$

125,000

 

$

125,000

 

$

110,000

 

 

 
















Portfolio turnover

 

 

19

%

 

30

%

 

20

%

 

45

%

 

34

%

 

 
















Asset coverage per Preferred Share, end of year

 

$

75,230

 

$

67,294

6

$

70,889

6

$

69,742

6

$

76,186

6

 

 

















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Amount is less than $(0.01) per share.

 

 

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

 

 

4

Interest expense and fees related to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Amounts have been recalculated to conform with current year presentation.


 

 

 

See Notes to Financial Statements.

 




ANNUAL REPORT

APRIL 30, 2009

63



 

 


 

Financial Highlights

BlackRock MuniHoldings Fund II, Inc. (MUH)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
August 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

Year Ended July 31,

 

 


 

2008

 

2007

 

2006

 

2005

 

2004

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

13.66

 

$

14.78

 

$

14.82

 

$

15.03

 

$

13.98

 

$

13.46

 

 

 



















Net investment income1

 

 

0.72

 

 

1.04

 

 

1.05

 

 

1.04

 

 

1.08

 

 

1.15

 

Net realized and unrealized gain (loss)

 

 

(1.22

)

 

(1.14

)

 

(0.05

)

 

(0.11

)

 

1.15

 

 

0.50

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.10

)

 

(0.26

)

 

(0.27

)

 

(0.23

)

 

(0.14

)

 

(0.10

)

 

 



















Net increase (decrease) from investment operations

 

 

(0.60

)

 

(0.36

)

 

0.73

 

 

0.70

 

 

2.09

 

 

1.55

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.59

)

 

(0.76

)

 

(0.77

)

 

(0.91

)

 

(1.04

)

 

(1.03

)

 

 



















Net asset value, end of period

 

$

12.47

 

$

13.66

 

$

14.78

 

$

14.82

 

$

15.03

 

$

13.98

 

 

 



















Market price, end of period

 

$

11.33

 

$

13.01

 

$

13.99

 

$

14.12

 

$

15.25

 

$

13.53

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(3.55

)%3

 

(2.30

)%

 

5.08

%

 

4.89

%

 

15.46

%

 

11.88

%

 

 



















Based on market price

 

 

(7.99

) %3

 

(1.69

)%

 

4.39

%

 

(1.50

)%

 

21.04

%

 

10.75

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Ratios to Average Net Assets of Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses after fees waived excluding interest expense and fees4,5

 

 

1.22

%6

 

1.18

%

 

1.19

%

 

1.18

%

 

1.19

%

 

1.21

%

 

 



















Total expenses after fees waived5

 

 

1.60

%6

 

1.55

%

 

1.63

%

 

1.44

%

 

1.27

%

 

1.30

%

 

 



















Total expenses5

 

 

1.60

%6

 

1.55

%

 

1.63

%

 

1.44

%

 

1.27

%

 

1.31

%

 

 



















Net investment income5

 

 

7.84

%6

 

7.07

%

 

6.97

%

 

7.04

%

 

7.38

%

 

8.13

%

 

 



















Dividends to Preferred Shareholders

 

 

1.07

%6

 

1.79

%

 

1.82

%

 

1.55

%

 

0.98

%

 

0.69

%

 

 



















Net investment income to Common Shareholders

 

 

6.77

%6

 

5.28

%

 

5.15

%

 

5.49

%

 

6.41

%

 

7.44

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

139,377

 

$

152,633

 

$

165,185

 

$

165,565

 

$

167,588

 

$

155,583

 

 

 



















Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

61,000

 

$

61,000

 

$

87,000

 

$

87,000

 

$

87,000

 

$

87,000

 

 

 



















Portfolio turnover

 

 

19

%

 

28

%

 

15

%

 

49

%

 

38

%

 

29

%

 

 



















Asset coverage per Preferred Share, end of period

 

$

81,123

 

$

87,562

7

$

72,478

7

$

72,555

7

$

73,163

7

$

69,725

7

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Interest expense and fees related to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

6

Annualized.

 

 

 

 

7

Amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.

 




64

ANNUAL REPORT

APRIL 30, 2009




 

 



 

 

Financial Highlights

BlackRock MuniHoldings Insured Fund, Inc. (MUS)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 


 

 

 

2009

 

2008

 

2007

 

2006

 

2005

 


















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net asset value, beginning of year

 

$

13.31

 

$

14.10

 

$

13.80

 

$

14.44

 

$

14.12

 

 

 
















Net investment income1

 

 

0.93

 

 

1.05

 

 

0.93

 

 

0.97

 

 

1.01

 

Net realized and unrealized gain (loss)

 

 

(1.20

)

 

(0.87

)

 

0.36

 

 

(0.50

)

 

0.38

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.19

)

 

(0.38

)

 

(0.36

)

 

(0.28

)

 

(0.16

)

 

 
















Net increase (decrease) from investment operations

 

 

(0.46

)

 

(0.20

)

 

0.93

 

 

0.19

 

 

1.23

 

 

 
















Dividends to Common Shareholders from net investment income

 

 

(0.58

)

 

(0.59

)

 

(0.63

)

 

(0.83

)

 

(0.91

)

 

 
















Net asset value, end of year

 

$

12.27

 

$

13.31

 

$

14.10

 

$

13.80

 

$

14.44

 

 

 
















Market price, end of year

 

$

10.87

 

$

11.97

 

$

13.13

 

$

13.10

 

$

13.70

 

 

 
















 


















Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Based on net asset value

 

 

(2.52

)%

 

(0.95

)%

 

7.29

%

 

1.46

%

 

9.35

%

 

 
















 

Based on market price

 

 

(3.97

)%

 

(4.34

)%

 

5.25

%

 

1.51

%

 

15.90

%

 

 
















 


















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Total expenses after fees waived and excluding interest expense and fees3,4

 

 

1.17

%

 

1.27

%

 

1.23

%

 

1.24

%

 

1.24

%

 

 
















Total expenses after fees waived4

 

 

1.65

%

 

1.51

%

 

1.56

%

 

1.54

%

 

1.60

%

 

 
















Total expenses4

 

 

1.88

%

 

1.64

%

 

1.67

%

 

1.65

%

 

1.70

%

 

 
















Net investment income4

 

 

7.69

%

 

7.72

%

 

6.62

%

 

6.87

%

 

7.09

%

 

 
















Dividends to Preferred Shareholders

 

 

1.61

%

 

2.80

%

 

2.59

%

 

2.00

%

 

1.09

%

 

 
















Net investment income to Common Shareholders

 

 

6.08

%

 

4.92

%

 

4.03

%

 

4.87

%

 

6.00

%

 

 
















 


















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net assets applicable to Common Shareholders, end of year (000)

 

$

158,061

 

$

171,510

 

$

181,640

 

$

177,790

 

$

185,821

 

 

 
















Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

94,200

 

$

134,000

 

$

134,000

 

$

134,000

 

$

134,000

 

 

 
















Portfolio turnover

 

 

35

%

 

57

%

 

29

%

 

59

%

 

43

%

 

 
















Asset coverage per Preferred Share, end of year

 

$

66,951

 

$

57,008

5

$

58,903

5

$

58,181

5

$

59,674

5

 

 

















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

 

 

3

Interest expense and fees related to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

4

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

5

Amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.

 


ANNUAL REPORT

APRIL 30, 2009

65



 

 



 

 

Financial Highlights

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
June 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
August 1,
20031 to
May 31,
2004

 

 

 

 

Year Ended May 31,

 

 

 

 

 


 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

 





















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net asset value, beginning of period

 

$

14.45

 

$

15.10

 

$

15.07

 

$

15.51

 

$

14.52

 

$

14.33

 

 

 



















Net investment income

 

 

0.89

2

 

1.04

2

 

1.03

2

 

1.04

2

 

1.02

2

 

0.79

 

Net realized and unrealized gain (loss)

 

 

(1.42

)

 

(0.63

)

 

0.18

 

 

(0.15

)

 

1.15

 

 

0.21

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.23

)

 

(0.33

)

 

(0.28

)

 

(0.21

)

 

(0.11

)

 

(0.06

)

Net realized gain

 

 

 

 

 

 

(0.04

)

 

(0.04

)

 

(0.02

)

 

 

 

 



















Net increase (decrease) from investment operations

 

 

(0.76

)

 

0.08

 

 

0.89

 

 

0.64

 

 

2.04

 

 

0.94

 

 

 



















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.64

)

 

(0.73

)

 

(0.74

)

 

(0.84

)

 

(0.86

)

 

(0.65

)

Net realized gain

 

 

 

 

 

 

(0.12

)

 

(0.23

)

 

(0.19

)

 

 

 

 



















Total dividends and distributions to Common Shareholders

 

 

(0.64

)

 

(0.73

)

 

(0.86

)

 

(1.07

)

 

(1.05

)

 

(0.65

)

 

 



















Capital charges with respect to issuance of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.02

)

Preferred Shares

 

 

 

 

 

 

 

 

(0.01

)

 

 

 

(0.08

)

 

 



















Total capital charges with respect to issuance of shares

 

 

 

 

 

 

 

 

(0.01

)

 

 

 

(0.10

)

 

 



















Net asset value, end of period

 

$

13.05

 

$

14.45

 

$

15.10

 

$

15.07

 

$

15.51

 

$

14.52

 

 

 



















Market price, end of period

 

$

11.77

 

$

13.70

 

$

14.85

 

$

14.52

 

$

13.94

 

$

13.10

 

 

 



















 





















Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Based on net asset value

 

 

(4.56

)%4

 

0.86

%

 

6.14

%

 

4.71

%

 

15.36

%

 

6.09

%4

 

 



















Based on market price

 

 

(9.21

)%4

 

(2.76

)%

 

8.34

%

 

12.25

%

 

14.93

%

 

(8.59

)%4

 

 



















 





















Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,6

 

 

1.02

%7

 

0.90

%

 

0.87

%

 

0.87

%

 

0.84

%

 

0.75

%7

 

 



















Total expenses after fees waived and paid indirectly5

 

 

1.25

%7

 

1.07

%

 

1.07

%

 

1.00

%

 

0.85

%

 

0.75

%7

 

 



















Total expenses5

 

 

1.44

%7

 

1.30

%

 

1.31

%

 

1.24

%

 

1.07

%

 

1.03

%7

 

 



















Net investment income5

 

 

7.46

%7

 

6.97

%

 

6.71

%

 

6.82

%

 

6.77

%

 

6.51

%7

 

 



















Dividends to Preferred Shareholders

 

 

1.94

%7

 

2.23

%

 

1.80

%

 

1.36

%

 

0.74

%

 

0.48

%7

 

 



















Net investment income to Common Shareholders

 

 

5.52

%7

 

4.74

%

 

4.91

%

 

5.46

%

 

6.03

%

 

6.03

%7

 

 



















 





















Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net assets applicable to Common Shareholders, end of period (000)

 

$

496,247

 

$

549,415

 

$

574,225

 

$

573,034

 

$

589,802

 

$

552,179

 

 

 



















Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

287,175

 

$

320,000

 

$

320,000

 

$

320,000

 

$

285,000

 

$

285,000

 

 

 



















Portfolio turnover

 

 

13

%

 

14

%

 

12

%

 

49

%

 

54

%

 

70

%

 

 



















Asset coverage per Preferred Share, end of period

 

$

68,207

 

$

67,941

8

$

69,875

8

$

69,781

8

$

73,743

8

$

73,441

8

 

 




















 

 

 

 

1

Commencement of operations.

 

 

 

 

2

Based on average shares outstanding.

 

 

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Interest expense and fees related to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

7

Annualized.

 

 

 

 

8

Amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.

 




66

ANNUAL REPORT

APRIL 30, 2009




 

 


 

 

Financial Highlights

BlackRock MuniVest Fund II, Inc. (MVT)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period
November 1,
2008 to
April 30,
2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 



 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 


Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Net asset value, beginning of period

 

$

10.95

 

$

14.49

 

$

15.35

 

$

15.13

 

$

15.21

 

$

14.76

 

 

 



















Net investment income1

 

 

0.53

 

 

1.12

 

 

1.16

 

 

1.16

 

 

1.19

 

 

1.17

 

Net realized and unrealized gain (loss)

 

 

0.95

 

 

(3.49

)

 

(0.84

)

 

0.35

 

 

0.04

 

 

0.44

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.05

)

 

(0.32

)

 

(0.32

)

 

(0.29

)

 

(0.18

)

 

(0.07

)

 

 



















Net increase (decrease) from investment operations

 

 

1.43

 

 

(2.69

)

 

 

 

1.22

 

 

1.05

 

 

1.54

 

 

 



















Dividends to Common Shareholders from net investment income

 

 

(0.43

)

 

(0.85

)

 

(0.86

)

 

(1.00

)

 

(1.10

)

 

(1.09

)

 

 



















Capital charge with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

(0.03

)

 

 

 

 



















Net asset value, end of period

 

$

11.95

 

$

10.95

 

$

14.49

 

$

15.35

 

$

15.13

 

$

15.21

 

 

 



















Market price, end of period

 

$

11.65

 

$

9.75

 

$

13.91

 

$

16.29

 

$

15.40

 

$

15.15

 

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Based on net asset value

 

 

13.71

%3

 

(19.33

)%

 

(0.02

)%

 

8.36

%

 

6.88

%

 

10.94

%

 

 



















Based on market price

 

 

24.49

%3

 

(25.18

)%

 

(9.56

)%

 

12.98

%

 

9.21

%

 

14.38

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total expenses excluding interest expense and fees4,5

 

 

1.26

%6

 

1.16

%

 

1.12

%

 

1.11

%

 

1.07

%

 

0.99

%

 

 



















Total expenses5

 

 

1.51

%6

 

1.67

%

 

1.67

%

 

1.61

%

 

1.35

%

 

1.16

%

 

 



















Net investment income5

 

 

9.77

%6

 

8.03

%

 

7.74

%

 

7.70

%

 

7.76

%

 

7.86

%

 

 



















Dividends to Preferred Shareholders

 

 

0.95

%6

 

2.31

%

 

2.11

%

 

1.90

%

 

1.14

%

 

0.46

%

 

 



















Net investment income to Common Shareholders

 

 

8.82

%6

 

5.72

%

 

5.63

%

 

5.80

%

 

6.62

%

 

7.40

%

 

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Net assets applicable to Common Shareholders, end of period (000)

 

$

243,583

 

$

223,210

 

$

293,836

 

$

309,975

 

$

303,701

 

$

303,448

 

 

 



















Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

150,800

 

$

150,800

 

$

175,000

 

$

175,000

 

$

175,000

 

$

135,000

 

 

 



















Portfolio turnover

 

 

9

%

 

49

%

 

43

%

 

60

%

 

64

%

 

20

%

 

 



















Asset coverage per Preferred Share, end of period

 

$

65,388

 

$

62,019

 

$

67,004

7

$

69,307

7

$

68,389

7

$

81,194

7

 

 




















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effect of sales charges.

 

 

 

 

3

Aggregate total investment return.

 

 

 

 

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

5

Do not reflect the effects of dividends to Preferred Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

7

Amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

APRIL 30, 2009

67



 


 

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock Apex Municipal Fund, Inc. (“Apex”), BlackRock MuniAssets Fund, Inc. (“MuniAssets”), BlackRock MuniEnhanced Fund, Inc. (“MuniEnhanced”), BlackRock MuniHoldings Fund, Inc. (“MuniHoldings Fund”), BlackRock Muni-Holdings Fund II, Inc. (“MuniHoldings Fund II”), BlackRock MuniHoldings Insured Fund, Inc. (“MuniHoldings Insured”), BlackRock Muni Intermediate Duration Fund, Inc. (“Muni Intermediate”) and BlackRock MuniVest Fund II, Inc. (“MuniVest Fund II”) (all, collectively the “Funds” or individually as the “Fund”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as non-diversified, closed-end management investment companies. All Funds are organized as Maryland corporations. The Funds’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. All Funds’ year ends were changed to April 30, except MuniHoldings Fund and MuniHoldings Insured as follows:

 

 

 

 

 

 


 

 

Current Period

 

Prior Year End

 


Apex

 

July 1, 2008 to April 30, 2009

 

June 30, 2008

 

MuniAssets

 

June 1, 2008 to April 30, 2009

 

May 31, 2008

 

MuniEnhanced

 

February 1, 2009 to April 30, 2009

 

January 31, 2009

 

MuniHoldings Fund II

 

August 1, 2008 to April 30, 2009

 

July 31, 2008

 

Muni Intermediate

 

June 1, 2008 to April 30, 2009

 

May 31, 2008

 

MuniVest Fund II

 

November 1, 2008 to April 30, 2009

 

October 31, 2008

 


Each Fund determines, and makes available for publication the net asset value of its Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Funds:

Valuation of Investments: Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Fund’s Board of Directors (the “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from bond dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Swap agreements are valued by utilizing quotes received daily by the Funds’ pricing service or through brokers, which are derived using daily swap curves and trades of underlying securities. Short-term securities with maturities less than 60 days may be valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by each Fund’s Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or sub-advisor seeks to determine the price that each Fund might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Derivative Financial Instruments: Each Fund may engage in various portfolio investment strategies both to increase the return of the Fund and to hedge, or protect, its exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security or if the counterparty does not perform under the contract.

 

 

Financial futures contracts — Each Fund may purchase or sell financial futures contracts and options on such futures contracts for investment purposes or to manage its interest rate risk. Futures are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Pursuant to the contract, the Fund agrees to receive from, or pay to, the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of futures transactions involves the risk of an imperfect correlation in the movements in the price of futures contracts, interest rates and the underlying assets, and the possible inability of counterparties to meet the terms of their contracts.

 

 

Forward interest rate swaps — Each Fund may enter into forward interest rate swaps for investment purposes. The Funds may enter into swap agreements, in which the Fund and the counterparty agree to make periodic net payments on a specific notional amount. In a forward interest rate swap, a Fund and the counterparty agreed to make periodic net payments on a specified notional contract amount, commencing on a specified future effective date, unless terminated earlier. These periodic payments received or made by the Funds are recorded in the accompanying Statements of Operations as realized gains or losses, respectively. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). When the swap is terminated, the Funds will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds’ basis in the contract, if any. The Funds generally intend to close each forward interest rate swap before the effective date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward interest rate swap. Swap transactions involve, to varying degrees, elements of credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Forward Commitments and When-Issued Delayed Delivery Securities: Each Fund may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such

 

 

 




68

ANNUAL REPORT

APRIL 30, 2009



 


 

Notes to Financial Statements (continued)

transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed-delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations.

Municipal Bonds Transferred to Tender Option Bond Trusts: Each Fund leverages its assets through the use of tender option bond trusts (“TOBs”). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Fund has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Fund include the right of the Fund (1) to cause the holders of a proportional share of the floating rate certificates to tender their certificates at par, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to the Fund. The TOB may also be terminated without the consent of the Fund upon the occurrence of certain events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond or the inability to remarket the short-term floating rate certificates to third party investors.

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to the Fund, which typically invests the cash in additional municipal bonds. Each Fund’s transfer of the municipal bonds to a TOB is accounted for as a secured borrowing, therefore the municipal bonds deposited into a TOB are presented in the Funds’ Schedules of Investments and the proceeds from the issuance of the short term floating rate certificates are shown on the Statements of Assets and Liabilities as trust certificates.

Interest income from the underlying security is recorded by the Funds on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expenses of the Funds. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At April 30, 2009, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for trust certificates and the range of interest rates for trust certificates were as follows:

 

 

 

 

 

 

 

 

 

 

 


 

 

Underlying
Municipal
Bonds
Transferred to
TOBs

 

Liability
for Trust
Certificates

 

Range of
Interest
Rates
for Trust
Certificates

 


Apex

 

$

14,288,953

 

$

7,285,446

 

0.578% – 1.717%

 

MuniAssets

 

$

21,104,447

 

$

10,755,646

 

0.578% – 1.717%

 

MuniEnhanced

 

$

87,187,189

 

$

45,851,537

 

0.513% – 1.636%

 

MuniHoldings Fund

 

$

57,523,400

 

$

30,287,956

 

0.713% – 1.974%

 

MuniHoldings Fund II

 

$

45,315,513

 

$

24,138,073

 

0.713% – 1.927%

 

MuniHoldings Insured

 

$

46,830,446

 

$

26,389,442

 

0.477% – 2.312%

 

Muni Intermediate

 

$

93,380,980

 

$

53,282,804

 

1.736% – 2.317%

 

MuniVest Fund II

 

$

87,169,159

 

$

44,766,441

 

0.615% – 1.265%

 


Financial transactions executed through TOBs generally will underperform the market for fixed rate municipal bonds when short-term interest rates rise, but tend to outperform the market for fixed rate bonds when short term interest rates decline or remain relatively stable. Should short-term interest rates rise, the Funds’ investments in TOBs may adversely affect the Funds’ investment income and distributions to shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect the Funds’ net asset value per share.

Zero-Coupon Bonds: Each Fund may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide regular interest payments.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Fund segregates assets in connection with certain investments (e.g., when-issued, delayed delivery securities, futures and swaps), each Fund will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, the Funds may also be required to deliver or deposit securities as collateral for certain investments (e.g., futures and swaps).

Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual method. Each Fund amortizes all premiums and discounts on debt securities.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 5.

Income Taxes: It is each Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

 

 

 




ANNUAL REPORT

APRIL 30, 2009

69



 


 

Notes to Financial Statements (continued)

Each Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ US federal tax returns remains open for the year or period ended April 30, 2009 and the preceding three fiscal years of the respective Fund. The statutes of limitations on the Funds’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133” (“FAS 161”), was issued. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for and how derivative instruments affect an entity’s results of operations and financial position. FAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. MuniEnhanced adopted FAS 161, effective February 1, 2009. Adoption of FAS 161 had no impact on the Fund’s financial statement disclosures. For all other Funds, the impact on the Funds’ financial statement disclosures, if any, is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Fund’s Board, non-interested Directors (“Independent Directors”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Directors. This has approximately the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund. Each Fund may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Directors in order to match their deferred compensation obligations.

Bank Overdraft: MuniHoldings Insured recorded a bank overdraft which resulted from estimates of available cash.

Other: Expenses directly related to each Fund are charged to that Fund. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appropriate methods. Custodian fees may be reduced by amounts calculated on uninvested cash balances, which are shown on the Statements of Operations as fees paid indirectly.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administration services. The PNC Financial Services Group, Inc. (“PNC”) and Bank of America Corporation (“BAC”) are the largest stockholders of BlackRock. BAC became a stockholder of BlackRock following its acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date, both PNC and Merrill Lynch were considered affiliates of the Funds under the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but due to the restructuring of Merrill Lynch’s ownership interest of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.

The Advisor is responsible for the management of each Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Advisor a monthly fee at an annual rate of 0.50% for MuniEnhanced and MuniVest II, 0.55% for MuniAssets, MuniHoldings Fund, MuniHoldings Fund II, MuniHoldings Insured and Muni Intermediate, and 0.65% for Apex of each Fund’s average daily net assets. Average daily net assets is the average daily value of the respective Fund’s total assets minus the sum of its accrued liabilities.

The Advisor has contractually agreed to waive a portion of its fee during the first seven years of Muni Intermediate’s operations ending July 31, 2010, as follows:

 

 

 

 

 


 

 

Fee Waiver
(As a Percentage
of Average Daily
Net Assets)

 


Years 1 through 5

 

0.15

%

 

Year 6

 

0.10

%

 

Year 7

 

0.05

%

 

Year 8 and thereafter

 

0.00

%

 


This amount is included in fees waived by advisor on the Statements of Operations for Muni Intermediate. For the two periods shown, the waiver was as follows:

 

 

 

 

 

 

 

 


 

 

Current Year

 

Prior Year

 


Muni Intermediate

 

$

836,120

 

$

1,319,995

 


The Advisor has agreed to waive its advisory fees by the amount of investment advisory fees each Fund pays to the Advisor indirectly through its investment in affiliated money market funds. These amounts are included in fees waived by advisor on the Statements of Operations. For the two periods shown, the amounts were as follows:

 

 

 

 

 

 

 

 


 

 

Current Period

 

Prior Year

 


Apex

 

$

3,663

 

$

3,446

 

MuniAssets

 

$

9,317

 

$

7,246

 

MuniEnhanced

 

$

6,232

 

$

27,586

 

MuniHoldings Fund

 

$

7,584

 

$

18

 

MuniHoldings Fund II

 

$

4,942

 

$

22

 

MuniHoldings Insured

 

$

15,206

 

$

331

 

Muni Intermediate

 

$

38,123

 

$

6,567

 


The Advisor for MuniHoldings Insured has voluntarily agreed to waive its investment advisory fee on the proceeds of Preferred Shares and TOBs that exceed 35% of the Fund’s average daily net assets. This amount is included

 

 

 




70

ANNUAL REPORT

APRIL 30, 2009




 


 

Notes to Financial Statements (continued)

in fees waived by advisor on the Statements of Operations. For the current year ended April 30, 2009, the waiver was as follows:

 

 

 

 

 






MuniHoldings Insured

 

$

345,203

 






The Advisor has entered into a separate sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Advisor, under which the Advisor pays BIM for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by each Fund to the Advisor.

Each Fund reimbursed the Advisor for certain accounting services, which are included in accounting services on the Statements of Operations. The amounts for the current period and the prior year are as follows:

 

 

 

 

 

 

 

 







 

 

Current Period

 

Prior Year

 







Apex

 

$

2,398

 

$

3,435

 

MuniAssets

 

$

3,832

 

$

4,953

 

MuniEnhanced

 

$

2,364

 

$

7,895

 

MuniHoldings Fund

 

$

5,151

 

$

6,207

 

MuniHoldings Fund II

 

$

2,882

 

$

4,203

 

MuniHoldings Insured

 

$

4,831

 

$

5,542

 

Muni Intermediate

 

$

13,544

 

$

15,942

 

MuniVest Fund II

 

$

3,909

 

$

7,622

 









Certain officers and/or directors of the Funds are officers and/or directors of BlackRock or its affiliates. Each Fund reimburses the Advisor for compensation paid to each Fund’s Chief Compliance Officer.

3. Investments:

Purchases and sales of investments, excluding short-term securities, for the current period, were as follows:

 

 

 

 

 

 

 

 







 

 

Purchases

 

Sales

 







Apex

 

$

37,404,240

 

$

32,778,548

 

MuniAssets

 

$

65,459,726

 

$

53,501,275

 

MuniEnhanced

 

$

41,022,657

 

$

26,855,574

 

MuniHoldings Fund

 

$

57,374,846

 

$

57,734,679

 

MuniHoldings Fund II

 

$

42,729,824

 

$

51,580,260

 

MuniHoldings Insured

 

$

95,113,347

 

$

127,528,210

 

Muni Intermediate

 

$

127,937,159

 

$

103,036,763

 

MuniVest Fund II

 

$

76,270,115

 

$

37,211,399

 









4. Concentration, Market and Credit Risk:

Each Fund invests a substantial amount of its assets in issuers located in a single state or limited number of states. Please see the Schedule of Investments for concentrations in specific states.

Many municipalities insure repayment of their bonds, which reduces the risk of loss due to issuer default. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to credit risk, the Funds may be exposed to counterparty risk, or the risk that an entity with which the Funds have unsettled or open transactions may default. Financial assets, which potentially expose the Funds to credit and counterparty risks, consist principally of investments and cash due from counterparties. The extent of the Funds’ exposure to credit and counterparty risks with respect to these financial assets is approximated by their value recorded in the Funds’ Statements of Assets and Liabilities.

5. Capital Share Transactions:

Each Fund, except Apex, is authorized to issue 200 million shares (150 million for Apex), all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10. The par value for each Fund’s Preferred Shares is $0.10 except MuniEnhanced Series A, B and C which is $0.025, and MuniVest II Series A, B and C which is $0.05. Each Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders.

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

 

 

 

 

 

 

 

 

 

 









 

 

Current Period

 

Prior Year

 

Two Years Prior

 









Apex

 

53,658

 

 

103,837

 

 

104,307

 

 

MuniAssets

 

95,859

 

 

146,172

 

 

154,369

 

 

MuniHoldings Fund II

 

 

 

 

 

4,645

 

 

MuniVest Fund II

 

 

 

104,666

 

 

87,529

 

 












Shares issued and outstanding remained constant for MuniEnhanced, MuniHoldings Fund, MuniHoldings Insured and Muni Intermediate for the period ended April 30, 2009 and the prior two years.

Preferred Shares

The Preferred Shares are redeemable at the option of each respective Fund, in whole or in part, on any dividend payment date at its liquidation preference per share plus any accumulated or unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of the Funds, as set forth in the Funds’ Articles Supplementary, are not satisfied.

From time to time in the future, the Funds that have issued Preferred Shares may effect repurchases of such shares at prices below their liquidation preferences as agreed upon by the Funds and seller. The Funds also may redeem their respective Preferred Shares from time to time as provided in the applicable Governing Instrument. The Funds intend to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

 

 

 


ANNUAL REPORT

APRIL 30, 2009

71



 


 

Notes to Financial Statements (continued)

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with the holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors for each Fund. In addition, the 1940 Act requires that along with the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class, would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares (b) change the Fund’s sub classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

The Funds had the following series of Preferred Shares outstanding, effective yields and reset frequency at April 30, 2009:

 

 

 

 

 

 

 

 

 

 

 

 

 














 

 

Series

 

Preferred
Shares

 

Effective
Yield

 

Reset
Frequency
Days

 











MuniEnhanced

 

A1

 

1,699

 

 

0.731

%

 

28

 

 

 

 

B1

 

1,699

 

 

0.792

%

 

28

 

 

 

 

C1

 

1,699

 

 

0.792

%

 

7

 

 

 

 

D2

 

1,257

 

 

1.792

%

 

7

 

 














MuniHoldings Fund

 

A1

 

1,618

 

 

0.792

%

 

7

 

 

 

 

B1

 

1,618

 

 

0.762

%

 

7

 

 

 

 

C2

 

441

 

 

1.820

%

 

7

 

 














MuniHoldings Fund II

 

A1

 

1,220

 

 

0.792

%

 

7

 

 

 

 

B1

 

1,220

 

 

0.792

%

 

7

 

 














MuniHoldings Insured

 

A1

 

1,884

 

 

0.762

%

 

7

 

 

 

 

B1

 

1,884

 

 

0.792

%

 

7

 

 














Muni Intermediate

 

M72

 

1,795

 

 

1.820

%

 

7

 

 

 

 

T72

 

2,423

 

 

1.820

%

 

7

 

 

 

 

W72

 

1,795

 

 

1.820

%

 

7

 

 

 

 

TH72

 

2,423

 

 

1.792

%

 

7

 

 

 

 

F72

 

1,795

 

 

1.820

%

 

7

 

 

 

 

TH282

 

1,256

 

 

1.751

%

 

28

 

 














MuniVest Fund II

 

A1

 

1,551

 

 

0.716

%

 

28

 

 

 

 

B1

 

1,551

 

 

0.746

%

 

28

 

 

 

 

C1

 

1,551

 

 

0.792

%

 

7

 

 

 

 

D2

 

1,379

 

 

1.820

%

 

7

 

 















 

 

1

The maximum applicable rate is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

 

 

2

The maximum applicable rate is the higher of 110% plus or times the Telerate/BBA LIBOR or 110% or 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

Dividends on seven-day and 28-day Preferred Shares are cumulative at a rate, which is reset every seven or 28 days, respectively, based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, the Fund is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on the Preferred Shares is as footnoted in the table above. The low, high and average dividend rates on the Preferred Shares for each Fund for the period were as follows:

 

 

 

 

 

 

 

 

 

 











 

 

Series

 

Low

 

High

 

Average

 











MuniEnhanced

 

A

 

0.655

%

 

0.914

%

 

0.796

%

 

 

 

B

 

0.716

%

 

1.142

%

 

0.795

%

 

 

 

C

 

0.594

%

 

0.914

%

 

0.754

%

 

 

 

D

 

1.640

%

 

1.931

%

 

1.786

%

 














MuniHoldings Fund

 

A

 

0.594

%

 

11.347

%

 

2.419

%

 

 

 

B

 

0.594

%

 

12.261

%

 

2.467

%

 

 

 

C

 

1.640

%

 

10.377

%

 

3.330

%

 














MuniHoldings Fund II

 

A

 

0.594

%

 

11.347

%

 

2.282

%

 

 

 

B

 

0.594

%

 

11.728

%

 

2.320

%

 














MuniHoldings Insured

 

A

 

0.594

%

 

12.261

%

 

2.467

%

 

 

 

B

 

0.594

%

 

10.205

%

 

2.443

%

 














Muni Intermediate

 

M7

 

1.640

%

 

10.377

%

 

3.271

%

 

 

 

T7

 

1.640

%

 

11.415

%

 

3.259

%

 

 

 

W7

 

1.682

%

 

12.523

%

 

3.266

%

 

 

 

TH7

 

1.640

%

 

12.246

%

 

3.227

%

 

 

 

F7

 

1.640

%

 

11.762

%

 

3.154

%

 

 

 

TH28

 

1.640

%

 

12.246

%

 

3.613

%

 














MuniVest Fund II

 

A

 

0.640

%

 

3.488

%

 

0.972

%

 

 

 

B

 

0.655

%

 

1.752

%

 

1.000

%

 

 

 

C

 

0.640

%

 

1.904

%

 

1.040

%

 

 

 

D

 

1.640

%

 

4.105

%

 

2.050

%

 














Since February 13, 2008, the Preferred Shares of each Fund failed to clear any of their auctions. As a result, the Preferred Shares dividend rates were reset to the maximum applicable rate, which ranged from 0.594% to 12.523% for the period ended April 30, 2009. A failed auction is not an event of default for the Funds but it has a negative impact on the liquidity of Preferred Shares. A failed auction occurs when there are more sellers of a Fund’s auction rate preferred shares than buyers. It is impossible to predict how long this imbalance will last. A successful auction for each Fund’s Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, Preferred Shareholders may not have the ability to sell the Preferred Shares at their liquidation preference.

The Funds may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%.

 

 

 




72

ANNUAL REPORT

APRIL 30, 2009



 


 

Notes to Financial Statements (continued)

Prior to December 22, 2008, the Funds paid commissions to certain broker-dealers at the end of each auction at an annual rate of 0.25%, calculated on the aggregate principal amount. As of December 22, 2008, commissions paid to broker-dealers on Preferred Shares that experienced a failed auction were reduced to 0.15% on the aggregate principal amount. The Funds will pay commissions of 0.25% on the aggregate principal amount if all shares successfully clear their auctions. For the two periods shown Merrill Lynch, Pierce, Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commissions as follows for the current period through December 31, 2008 (after which Merrill Lynch was no longer considered an affiliate).

 

 

 

 

 

 

 

 







 

 

Current Period

 

Prior Year

 







MuniEnhanced

 

 

 

$

176,601

 

MuniHoldings Fund

 

$

76,091

 

$

137,897

 

MuniHoldings Fund II

 

$

23,846

 

$

80,144

 

MuniHoldings Insured

 

$

80,081

 

$

154,960

 

Muni Intermediate

 

$

286,179

 

$

524,140

 

MuniVest Fund II

 

$

29,708

 

$

221,296

 









On June 4, 2008 for MuniEnhanced, MuniHoldings Fund, MuniHoldings Fund II, MuniHoldings Insured and Muni Intermediate and June 17, 2008 for MuniVest Fund II, the Funds announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:

 

 

 

 

 

 

 

 

 

 

 











 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 











MuniEnhanced

 

A

 

6/17/08

 

301

 

$

7,525,000

 

 

 

B

 

6/24/08

 

301

 

$

7,525,000

 

 

 

C

 

6/17/08

 

301

 

$

7,525,000

 

 

 

D

 

6/27/08

 

223

 

$

5,575,000

 












MuniHoldings Fund

 

A

 

6/25/08

 

582

 

$

14,550,000

 

 

 

B

 

6/27/08

 

582

 

$

14,550,000

 

 

 

C

 

6/24/08

 

159

 

$

3,975,000

 












MuniHoldings Fund II

 

A

 

6/25/08

 

520

 

$

13,000,000

 

 

 

B

 

6/23/08

 

520

 

$

13,000,000

 












MuniHoldings Insured

 

A

 

6/27/08

 

796

 

$

19,900,000

 

 

 

B

 

6/24/08

 

796

 

$

19,900,000

 












Muni Intermediate

 

M7

 

6/24/08

 

205

 

$

5,125,000

 

 

 

T7

 

6/25/08

 

277

 

$

6,925,000

 

 

 

W7

 

6/26/08

 

205

 

$

5,125,000

 

 

 

TH7

 

6/27/08

 

277

 

$

6,925,000

 

 

 

F7

 

6/23/08

 

205

 

$

5,125,000

 

 

 

TH28

 

7/07/08

 

144

 

$

3,600,000

 












MuniVest Fund II

 

A

 

7/03/08

 

249

 

$

6,225,000

 

 

 

B

 

7/10/08

 

249

 

$

6,225,000

 

 

 

C

 

6/26/08

 

249

 

$

6,225,000

 

 

 

D

 

6/24/08

 

221

 

$

5,525,000

 












The Funds financed the Preferred Share redemptions with cash received from TOB transactions.

Preferred Shares issued and outstanding for the period ended April 30, 2009 and the years ended December 31, 2007 and October 31, 2007 remained constant.

6. Income Tax Information:

Reclassifications: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or on net asset values per share. The following permanent differences as of April 30, 2009 attributable to amortization methods on fixed income securities, securities in default, the reclassification of distributions and the expiration of capital loss carryforwards, were reclassified to the following accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











 

 

Apex

 

MuniAssets

 

MuniEnhanced

 

MuniHoldings
Fund

 











Paid-in capital

 

$

(5,341,699

)

$

(3,487,083

)

 

 

 

 

Undistributed net investment income

 

$

(23,233

)

$

(30,244

)

$

(438,121

)

$

120,412

 

Accumulated net realized gain (loss)

 

$

5,364,932

 

$

3,517,327

 

$

438,121

 

$

(120,412

)
















 

 

 

 

 

 

 

 

 

 

 

 

 

 











 

 

MuniHoldings
Fund II

 

MuniHoldings
Insured

 

Muni
Intermediate

 

MuniVest
Fund II

 











Paid-in capital

 

$

(11,767,756

)

$

(9,681,758

)

 

 

 

 

Undistributed net investment income

 

$

(44,602

)

$

(723,503

)

$

(8,817

)

$

178,506

 

Accumulated net realized gain (loss)

 

$

11,812,358

 

$

10,405,261

 

$

8,817

 

$

(178,506

)
















 

 

 


ANNUAL REPORT

APRIL 30, 2009

73





Notes to Financial Statements (continued)

The tax character of distributions paid during the periods shown were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











 

 

Apex

 

MuniAssets

 

MuniEnhanced

 

MuniHoldings
Fund

 















Tax-Exempt Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

$

9,259,509

 

$

15,527,663

 

$

4,162,234

 

$

14,319,988

 

Prior Period

 

 

11,460,645

 

 

17,002,831

 

 

20,746,384

 

 

16,178,174

 

Two Years Prior

 

 

11,596,069

 

 

17,339,322

 

 

22,090,016

 

 

16,870,018

 

Ordinary income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

 

 

 

 

 

 

 

27,182

 

Prior Period

 

 

 

 

65,858

 

 

 

 

100,708

 

Long-Term Capital Gains:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

 

 

 

 

 

 

 

296,764

 

Prior Period

 

 

 

 

 

 

 

 

1,534,274

 

Two Years Prior

 

 

 

 

 

 

 

 

 















Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

$

9,259,509

 

$

15,527,663

 

$

4,162,234

 

$

14,643,934

 

 

 













Prior Period

 

$

11,460,645

 

$

17,068,689

 

$

20,746,384

 

$

17,813,156

 

 

 













Two Years Prior

 

$

11,596,069

 

$

17,339,322

 

$

22,090,016

 

$

16,870,018

 

 

 














 

 

 

 

 

 

 

 

 

 

 

 

 

 











 

 

MuniHoldings
Fund II

 

MuniHoldings
Insured

 

Muni
Intermediate

 

MuniVest
Fund II

 















Tax-Exempt Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

$

7,352,534

 

$

10,007,431

 

$

33,025,061

 

$

9,682,717

 

Prior Period

 

 

11,399,342

 

 

12,555,586

 

 

40,440,076

 

 

23,845,376

 

Two Years Prior

 

 

11,685,098

 

 

12,849,769

 

 

38,760,689

 

 

23,790,532

 

Ordinary income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

 

298,709

 

 

 

 

172,919

 

 

152,170

 

Prior Period

 

 

42,062

 

 

 

 

 

 

77,411

 

Two Years Prior

 

 

 

 

 

 

4,118,763

 

 

 

Long-Term Capital Gains:

 

 

 

 

 

 

 

 

 

 

 

 

 

Two Years Prior

 

 

 

 

 

 

1,853,318

 

 

 















Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Period

 

$

7,651,243

 

$

10,007,431

 

$

33,197,980

 

$

9,834,887

 

 

 













Prior Period

 

$

11,441,404

 

$

12,555,586

 

$

40,440,076

 

$

23,922,787

 

 

 













Two Years Prior

 

$

11,685,098

 

$

12,849,769

 

$

44,732,770

 

$

23,790,532

 

 

 













 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of April 30, 2009, the components of accumulated losses on a tax basis were as follows:

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Apex

 

MuniAssets

 

MuniEnhanced

 

MuniHoldings
Fund

 















Undistributed tax-exempt income

 

$

436,106

 

$

336,114

 

$

3,369,898

 

$

1,937,149

 

Undistributed ordinary Income

 

 

173,691

 

 

243,650

 

 

 

 

906

 

Undistributed long-term gains

 

 

 

 

 

 

 

 

298,564

 

Capital loss carryforwards

 

 

(9,380,544

)

 

(26,130,920

)

 

(8,368,605

)

 

 

Net unrealized losses*

 

 

(34,395,082

)

 

(48,275,735

)

 

(24,434,368

)

 

(24,736,180

)

 

 













Total accumulated losses

 

$

(43,165,829

)

$

(73,826,891

)

$

(29,433,075

)

$

(22,499,561

)
















 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

MuniHoldings
Fund II

 

MuniHoldings
Insured

 

Muni
Intermediate

 

MuniVest
Fund II

 















Undistributed tax-exempt income

 

$

1,757,217

 

$

2,350,901

 

$

3,716,347

 

$

2,191,062

 

Undistributed ordinary income

 

 

2,818

 

 

 

 

 

 

 

Capital loss carryforwards

 

 

(878,613

)

 

(5,997,063

)

 

(1,267,419

)

 

(7,239,097

)

Net unrealized losses*

 

 

(15,692,260

)

 

(11,856,986

)

 

(46,703,924

)

 

(29,979,591

)

 

 













Total accumulated losses

 

$

(14,810,838

)

$

(15,503,148

)

$

(44,254,996

)

$

(35,027,626

)
















 

 

 

 

*

The difference between book-basis and tax-basis net unrealized losses is attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities, book/tax differences in the accrual of income on securities in default, the difference between the book and tax treatment of residual interests in tender option bond trusts, the deferral of post-October capital losses for tax purposes and the deferral of compensation to directors.


 

 

 




74

ANNUAL REPORT

APRIL 30, 2009




Notes to Financial Statements (continued)

As of April 30, 2009 the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Expires April 30,

 

Apex

 

MuniAssets

 

MuniEnhanced

 

MuniHoldings
Fund II

 

MuniHoldings
Insured

 

Muni
Intermediate

 

MuniVest
Fund II

 
























2010

 

$

2,075,987

 

$

2,260,830

 

$

1,955,204

 

$

689,205

 

 

 

 

 

 

 

2011

 

 

2,163,492

 

 

7,452,325

 

 

 

 

189,408

 

 

 

 

 

 

 

2012

 

 

1,659,281

 

 

5,486,273

 

 

364,714

 

 

 

 

 

 

 

 

 

2013

 

 

35,292

 

 

3,762,613

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

3,072,949

 

 

5,065,527

 

 

 

 

 

 

 

$

334,473

 

 

 

2016

 

 

 

 

527,784

 

 

2,508,309

 

 

 

$

623,720

 

 

611,323

 

$

7,239,097

 

2017

 

 

373,543

 

 

1,575,568

 

 

3,540,378

 

 

 

 

5,373,343

 

 

321,623

 

 

 

 

 






















Total

 

$

9,380,544

 

$

26,130,920

 

$

8,368,605

 

$

878,613

 

$

5,997,063

 

$

1,267,419

 

$

7,239,097

 

 

 






















7. Restatement Information:

Subsequent to the initial issuance of the April 30, 2006 financial statements for MuniHoldings Fund and MuniHoldings Insured, May 31, 2006 for Muni Intermediate and July 31, 2006 for MuniHoldings II, the Funds determined that the criteria for sale accounting in FAS 140 had not been met for certain transfers of municipal bonds related to investments in TOB Residuals, and that these transfers should have been accounted for as secured borrowings rather than as sales. As a result, certain financial highlights for the year ended April 30, 2005 for MuniHoldings Fund and MuniHoldings Insured, May 31, 2005 for Muni Intermediate and July 31, 2004 and 2005 for MuniHoldings II have been restated to give effect to recording the transfers of the municipal bonds as secured borrowings, including recording interest on the bonds as interest income and interest on the secured borrowings as interest expense.

 

 

 

 

 

 

 

 









MuniHoldings Fund Financial Highlights
For the Year Ended April 30, 2005

 

Previously
Reported

 

Restated

 









Total expenses, net of reimbursement*

 

 

1.13

%

 

1.15

%

Total expenses*

 

 

1.13

%

 

1.15

%

Portfolio turnover

 

 

36.23

%

 

34

%










 

 

 

 

 

 

 

 









MuniHoldings Insured Fund Financial Highlights
For the Year Ended April 30, 2005

 

Previously
Reported

 

Restated

 









Total expenses, net of reimbursement*

 

 

1.24

%

 

1.60

%

Total expenses*

 

 

1.35

%

 

1.70

%

Portfolio turnover

 

 

51.81

%

 

43

%










 

 

 

 

 

 

 

 









Muni Intermediate Fund Financial Highlights
For the Year Ended May 31, 2005

 

Previously
Reported

 

Restated

 









Total expenses, net of waiver*

 

 

0.84

%

 

0.85

%

Portfolio turnover

 

 

54.55

%

 

54

%










 

 

 

 

 

 

 

 

 

 

 

 

 

 















MuniHoldings Fund II
Financial Highlights
For the Year Ended
July 31, 2005 and 2004

 

2005

 

2004

 

 


 



 

Previously
Reported

 

Restated

 

Previously Reported

 

Restated

 















Total expenses, net of reimbursement*

 

 

1.19

%

 

1.27

%

 

1.21

%

 

1.30

%

Total expenses*

 

 

1.19

%

 

1.27

%

 

1.22

%

 

1.31

%

Portfolio turnover

 

 

45.11

%

 

38

%

 

31.03

%

 

29

%
















 

 

 

 

*

Do not reflect the effect of dividends to Preferred Shareholders.

8. Subsequent Events:

The Funds paid a net investment income dividend in the following amounts per share on June 1, 2009 to shareholders of record on May 15, 2009:

 

 

 

 

 






 

 

Common Dividend
Per Share

 






Apex

 

$

0.046500

 

MuniAssets

 

$

0.067500

 

MuniEnhanced

 

$

0.043000

 

MuniHoldings Fund

 

$

0.071000

 

MuniHoldings Fund II

 

$

0.063000

 

MuniHoldings Insured

 

$

0.048500

 

Muni Intermediate

 

$

0.058000

 

MuniVest Fund II

 

$

0.071000

 







 

 

 




ANNUAL REPORT

APRIL 30, 2009

75




Notes to Financial Statements (concluded)

The dividends declared on Preferred Shares for the period May 1, 2009 to May 31, 2009 for the Funds were as follows:

 

 

 

 

 

 

 

 









 

 

Series

 

Dividends
Declared

 







MuniEnhanced

 

 

A

 

$

24,300

 

 

 

 

B

 

$

24,086

 

 

 

 

C

 

$

23,993

 

 

 

 

D

 

$

44,671

 









MuniHoldings Fund

 

 

A

 

$

22,244

 

 

 

 

B

 

$

21,702

 

 

 

 

C

 

$

15,956

 









MuniHoldings Fund II

 

 

A

 

$

16,772

 

 

 

 

B

 

$

17,055

 









MuniHoldings Insured

 

 

A

 

$

25,270

 

 

 

 

B

 

$

26,606

 









Muni Intermediate

 

 

M-7

 

$

64,948

 

 

 

 

T-7

 

$

86,877

 

 

 

 

W-7

 

$

64,291

 

 

 

 

TH7

 

$

86,108

 

 

 

 

TH28

 

$

45,268

 

 

 

 

F7

 

$

64,738

 









MuniVest Fund II

 

 

A

 

$

21,957

 

 

 

 

B

 

$

21,953

 

 

 

 

C

 

$

21,270

 

 

 

 

D

 

$

49,896

 









The Funds’ distribution rates declared on June 1, 2009 were as follows:

 

 

 

 

 






 

 

Per Share
Amount

 





MuniEnhanced

 

$

0.0505

 

MuniHoldings Fund

 

$

0.0835

 

MuniHoldings Fund II

 

$

0.0755

 

MuniHoldings Insured

 

$

0.0660

 

Muni Intermediate

 

$

0.0655

 

MuniVest Fund II

 

$

0.0835

 






On June 15, 2009, the Funds’ Boards approved the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:

 

 

 

 

 

 

 

 

 

 

 

 













 

 

Series

 

Redemption
Date

 

Shares to be
Redeemed

 

Aggregate
Principal

 











MuniEnhanced

 

A

 

7/14/09

 

174

 

 

$

4,350,000

 

 

 

B

 

7/21/09

 

174

 

 

$

4,350,000

 

 

 

C

 

6/30/09

 

174

 

 

$

4,350,000

 

 

 

D

 

7/06/09

 

129

 

 

$

3,225,000

 













MuniHoldings Fund

 

A

 

7/08/09

 

145

 

 

$

3,625,000

 

 

 

B

 

7/06/09

 

145

 

 

$

3,625,000

 

 

 

C

 

7/07/09

 

39

 

 

$

975,000

 













MuniHoldings Fund II

 

A

 

7/08/09

 

119

 

 

$

2,975,000

 

 

 

B

 

7/06/09

 

119

 

 

$

2,975,000

 













MuniHoldings Insured

 

A

 

7/06/09

 

144

 

 

$

3,600,000

 

 

 

B

 

7/07/09

 

144

 

 

$

3,600,000

 













MuniVest Fund II

 

A

 

7/30/09

 

111

 

 

$

2,775,000

 

 

 

B

 

7/09/09

 

111

 

 

$

2,775,000

 

 

 

C

 

7/09/09

 

111

 

 

$

2,775,000

 

 

 

D

 

7/07/09

 

99

 

 

$

2,475,000

 













The Funds will finance the Preferred Share redemptions with cash received from tender option bond transactions (See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts).

 

 

 




76

ANNUAL REPORT

APRIL 30, 2009




 


 

Report of Independent Registered Public Accounting Firm

To the Shareholders and Boards of Directors of:
BlackRock Apex Municipal Fund, Inc.

BlackRock MuniAssets Fund, Inc.
BlackRock MuniEnhanced Fund, Inc.
BlackRock MuniHoldings Fund, Inc.
BlackRock MuniHoldings Fund II, Inc.
BlackRock MuniHoldings Insured Fund, Inc.
BlackRock Muni Intermediate Duration Fund, Inc.
BlackRock MuniVest Fund II, Inc.

(Collectively, the “Funds”)

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock Apex Municipal Fund, Inc. as of April 30, 2009, and the related statements of operations for the period July 1, 2008 to April 30, 2009 and for the year ended June 30, 2008, the statements of changes in net assets for the period July 1, 2008 to April 30, 2009 and for each of the two years in the period ended June 30, 2008, and the financial highlights for the period July 1, 2008 to April 30, 2009 and for each of the five years in the period ended June 30, 2008. We have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock MuniAssets Fund, Inc. as of April 30, 2009, and the related statements of operations for the period June 1, 2008 to April 30, 2009 and for the year ended May 31, 2008, the statements of changes in net assets for the period June 1, 2008 to April 30, 2009 and for each of the two years in the period ended May 31, 2008, and the financial highlights for the period June 1, 2008 to April 30, 2009 and for each of the five years in the period ended May 31, 2008. We have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock MuniEnhanced Fund, Inc. as of April 30, 2009, and the related statements of operations for the period February 1, 2009 to April 30, 2009 and for the year ended January 31, 2009, the statement of cash flows for the year ended January 31, 2009, the statements of changes in net assets for the period February 1, 2009 to April 30, 2009 and for each of the two years in the period ended January 31, 2009, and the financial highlights for the period February 1, 2009 to April 30, 2009 and for each of the five years in the period ended January 31, 2009. We have also audited the accompanying statements of assets and liabilities, including the schedules of investments, of BlackRock MuniHoldings Fund, Inc. and BlackRock MuniHoldings Insured Fund, Inc. as of April 30, 2009, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended. We have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock MuniHoldings Fund II, Inc. as of April 30, 2009, and the related statements of operations for the period August 1, 2008 to April 30, 2009 and for the year ended July 31, 2008, the related statement of cash flows for the period August 1, 2008 to April 30, 2009, the statements of changes in net assets for the period August 1, 2008 to April 30, 2009 and for each of the two years in the period ended July 31, 2008, and the financial highlights for the period August 1, 2008 to April 30, 2009 and for each of the three years in the period ended July 31, 2008. We have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock Muni Intermediate Duration Fund, Inc. as of April 30, 2009, and the related statements of operations for the period June 1, 2008 to April 30, 2009 and for the year ended May 31, 2008, the statements of changes in net assets for the period June 1, 2008 to April 30, 2009 and for each of the two years in the period ended May 31, 2008, and the financial highlights for the period June 1, 2008 to April 30, 2009 and for each of the three years in the period ended May 31, 2008. We have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock MuniVest Fund II, Inc. as of April 30, 2009, and the related statements of operations for the period November 1, 2008 to April 30, 2009 and for the year ended October 31, 2008, the statement of cash flows for the period November 1, 2008 to April 30, 2009, the statements of changes in net assets for the period November 1, 2008 to April 30, 2009 and for each of the two years in the period ended October 31, 2008, and the financial highlights for the period November 1, 2008 to April 30, 2009 and for each of the five years in the period ended October 31, 2008. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for BlackRock MuniHoldings Fund, Inc. and BlackRock MuniHoldings Insured Fund, Inc. for the year ended April 30, 2005 (before the restatement described in Note 7) were audited by other auditors whose report, dated June 10, 2005, expressed a qualified opinion on the financial highlights because of the errors described in Note 7. The financial highlights for BlackRock MuniHoldings Fund II, Inc. for each of the two years in the period ended July 31, 2005 (before the restatement described in Note 7) were audited by other auditors whose report, dated September 12, 2005, expressed a qualified opinion on those financial highlights because of the errors described in Note 7. The financial highlights for BlackRock Muni Intermediate Duration Fund, Inc. for the year ended May 31, 2005 (before the restatement described in Note 7) were audited by other auditors whose report, dated July 13, 2005, expressed a qualified opinion on the financial highlights because of the errors described in Note 7. The financial highlights for BlackRock Muni Intermediate Duration Fund, Inc. for the period August 1, 2003 (commencement of operations) to May 31, 2004 were audited by other auditors whose report, dated July 13, 2005, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2009, by correspondence with the custodians and brokers, where replies were not received from custodians and brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

 

 

 




ANNUAL REPORT

APRIL 30, 2009

77



 


 

Report of Independent Registered Public Accounting Firm (concluded)

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Apex Municipal Fund, Inc. as of April 30, 2009, the results of its operations for the period July 1, 2008 to April 30, 2009 and for the year ended June 30, 2008, the changes in net assets for the period July 1, 2008 to April 30, 2009 and for each of the two years in the period ended June 30, 2008, and the financial highlights for the period July 1, 2008 to April 30, 2009 and for each of the five years in the period ended June 30, 2008, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock MuniAssets Fund, Inc. as of April 30, 2009, the results of its operations for the period June 1, 2008 to April 30, 2009 and for the year ended May 31, 2008, the changes in net assets for the period June 1, 2008 to April 30, 2009 and for each of the two years in the period ended May 31, 2008, and the financial highlights for the period June 1, 2008 to April 30, 2009 and for each of the five years in the period ended May 31, 2008, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock MuniEnhanced Fund, Inc. as of April 30, 2009, the results of its operations for the period February 1, 2009 to April 30, 2009 and for the year ended January 31, 2009, the changes in net assets for the period February 1, 2009 to April 30, 2009 and for each of the two years in the period ended January 31, 2009, its cash flows for the year ended January 31, 2009, and the financial highlights for the period February 1, 2009 to April 30, 2009 and for each of the five years in the period ended January 31, 2009, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock MuniHoldings Fund, Inc. and BlackRock MuniHoldings Insured Fund, Inc. as of April 30, 2009, the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock MuniHoldings Fund II, Inc. as of April 30, 2009, the results of its operations for the period August 1, 2008 to April 30, 2009 and for the year ended July 31, 2008, the changes in net assets for the period August 1, 2008 to April 30, 2009 and for each of the two years in the period ended July 31, 2008, its cash flows for the period August 1, 2008 to April 30, 2009 and for the year ended July 31, 2008, and the financial highlights for the period August 1, 2008 to April 30, 2009 and for each of the three years in the period ended July 31, 2008, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Muni Intermediate Duration Fund, Inc. as of April 30, 2009, the results of its operations for the period June 1, 2008 to April 30, 2009 and for the year ended May 31, 2008, the changes in net assets for the period June 1, 2008 to April 30, 2009 and for each of the two years in the period ended May 31, 2008, and the financial highlights for the period June 1, 2008 to April 30, 2009 and for each of the three years in the period ended May 31, 2008, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock MuniVest Fund II, Inc. as of April 30, 2009, the results of its operations for the period November 1, 2008 to April 30, 2009 and for the year ended October 31, 2008, the changes in net assets for the period November 1, 2008 to April 30, 2009 and for each of the two years in the period ended October 31, 2008, its cash flows for the period November 1, 2008 to April 30, 2009, and the financial highlights for the period November 1, 2008 to April 30, 2009 and for each of the five years in the period ended October 31, 2008, in conformity with accounting principles generally accepted in the United States of America.

We also have audited the adjustments, applied by management, to restate certain financial highlights for the year ended April 30, 2005 for BlackRock MuniHoldings Fund, Inc. and BlackRock MuniHoldings Insured Fund, Inc., for each of the two years in the period ended July 31, 2005 for BlackRock Muni-Holdings Fund II, Inc., and for the year ended May 31, 2005 for BlackRock Muni Intermediate Duration Fund, Inc. to correct the errors described in Note 7. These adjustments are the responsibility of the Funds’ management. The audit procedures that we performed with respect to the adjustments included such tests as we considered necessary in the circumstances and were designed to obtain reasonable assurance about whether the adjustments are appropriate and have been properly applied, in all material respects, to the restated financial highlights for the year ended April 30, 2005 for BlackRock MuniHoldings Fund, Inc. and BlackRock MuniHoldings Insured Fund, Inc., for each of the two years in the period ended July 31, 2005 for BlackRock MuniHoldings Fund II, Inc., and for the year ended May 31, 2005 for BlackRock Muni Intermediate Duration Fund, Inc. We did not perform any audit procedures designed to assess whether any additional adjustments to such financial highlights might be necessary in order for such financial highlights to be presented in conformity with generally accepted accounting principles. In our opinion, the adjustments to the financial highlights for the year ended April 30, 2005 for BlackRock MuniHoldings Fund, Inc. and BlackRock MuniHoldings Insured Fund, Inc., for each of the two years in the period ended July 31, 2005 for BlackRock MuniHoldings Fund II, Inc., and for the year ended May 31, 2005 for BlackRock Muni Intermediate Duration Fund, Inc. described in Note 7 are appropriate and have been properly applied, in all material respects. However, we were not engaged to audit, review, or apply any procedures to such financial highlights other than with respect to the adjustments described in Note 7 and, accordingly, we do not express an opinion or any other form of assurance on such financial highlights.

Deloitte & Touche LLP
Princeton, New Jersey

June 26, 2009

 

 

 




78

ANNUAL REPORT

APRIL 30, 2009



 


 

Important Tax Information

All of the net investment income distributions paid by BlackRock Apex Municipal Fund, Inc., BlackRock MuniAssets Fund, Inc., BlackRock MuniEnhanced Fund, Inc. and BlackRock MuniHoldings Insured Fund, Inc. during the taxable year ended April 30, 2009 qualify as tax-exempt interest dividends for federal income tax purposes.

The following table summarizes the taxable per share distributions paid by the following Funds during the taxable year ended April 30, 2009.

 

 

 

 

 

 

 

 

 

 











BlackRock MuniHoldings Fund, Inc.

 

Payable
Date

 

Ordinary
Income

 

Long-Term
Capital
Gains

 









Common Shareholders

 

12/31/2008

 

$

0.001458

 

$

0.015930

 











Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series A

 

12/10/2008

 

$

0.88

 

$

12.12

 

 

 

12/17/2008

 

$

0.91

 

$

7.52

 

 

 

12/24/2008

 

$

0.06

 

$

0.52

 

 

 

 

 

 

 

 

 

 

 

Series B

 

12/12/2008

 

$

0.83

 

$

9.15

 

 

 

12/19/2008

 

$

0.71

 

$

7.72

 

 

 

12/26/2008

 

$

0.30

 

$

3.17

 

 

 

 

 

 

 

 

 

 

 

Series C

 

12/09/2008

 

$

1.17

 

$

16.14

 

 

 

12/16/2008

 

$

0.93

 

$

6.73

 












 

 

 

 

 

 

 

 

 










BlackRock MuniHoldings Fund II, Inc.

 

 

 

Payable Date

 

Ordinary
Income

 









Common Shareholders

 

 

 

12/31/2008

 

$

0.019911

 










Preferred Shareholders:

 

 

 

 

 

 

 

 

Series A

 

 

 

12/03/2008

 

$

11.68

 

 

 

 

 

12/10/2008

 

$

13.00

 

 

 

 

 

12/17/2008

 

$

6.89

 

 

 

 

 

 

 

 

 

 

Series B

 

 

 

12/01/2008

 

$

11.57

 

 

 

 

 

12/08/2008

 

$

10.65

 

 

 

 

 

12/15/2008

 

$

8.70

 











 

 

 

 

 

 

 

 

 










BlackRock Muni Intermediate Duration Fund, Inc.

 

 

 

Payable Date

 

Ordinary
Income

 









Common Shareholders

 

 

 

12/31/2008

 

$

0.003013

 










Preferred Shareholders:

 

 

 

 

 

 

 

 

Series TH7

 

 

 

12/19/2008

 

$

4.84

 

Series TH28

 

 

 

12/19/2008

 

$

5.15

 

Series W7

 

 

 

12/18/2008

 

$

4.90

 

Series F7

 

 

 

12/15/2008

 

$

4.81

 

Series T7

 

 

 

12/10/2008

 

$

4.91

 

Series M7

 

 

 

12/09/2008

 

$

4.84

 











 

 

 

 

 

 

 

 

 










BlackRock MuniVest Fund II, Inc.

 

 

 

Payable Date

 

Ordinary
Income

 









Common Shareholders

 

 

 

12/31/2008

 

$

0.004573

 










Preferred Shareholders:

 

 

 

 

 

 

 

 

Series A

 

 

 

12/18/2008

 

$

6.13

 

Series B

 

 

 

12/26/2008

 

$

6.01

 

Series C

 

 

 

12/18/2008

 

$

5.67

 

Series D

 

 

 

12/23/2008

 

$

6.40

 










All of the other net investment income distributions paid by the Funds qualify as tax-exempt interest dividends for federal income tax purposes.

 

 

 




ANNUAL REPORT

APRIL 30, 2009

79




 


 

Automatic Dividend Reinvestment Plans

How the Plan Works — The Funds offer a Dividend Reinvestment Plan (the “Plan”) under which income and capital gains dividends paid by each Fund are automatically reinvested in additional Common Shares of each Fund. The Plan is administered on behalf of the shareholders by BNY Mellon Shareowner Services for BlackRock MuniYield Fund, Inc. and BlackRock MuniYield Quality Fund II, Inc. and Computershare Trust Company, N.A. for BlackRock MuniYield Quality Fund, Inc. (individually, the “Plan Agent” or together, the “Plan Agents”). Under the Plan, whenever the Funds declare a dividend, participants in the Plan will receive the equivalent in shares of Common Shares of the Fund. The Plan Agents will acquire the shares for the participant’s account either (i) through receipt of additional unissued but authorized shares of the Fund (“newly issued shares”) or (ii) by purchase of outstanding Common Shares on the open market on the New York Stock Exchange or elsewhere. If, on the dividend payment date, a Fund’s net asset value per share is equal to or less than the market price per share plus estimated brokerage commissions (a condition often referred to as a “market premium”), the Plan Agents will invest the dividend amount in newly issued shares. If a Fund’s net asset value per share is greater than the market price per share (a condition often referred to as a “market discount”), the Plan Agents will invest the dividend amount by purchasing on the open market additional shares. If the Plan Agents are unable to invest the full dividend amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Plan Agents will invest any uninvested portion in newly issued shares. The shares acquired are credited to each shareholder’s account. The amount credited is determined by dividing the dollar amount of the dividend by either (i) when the shares are newly issued, the net asset value per share on the date the shares are issued or (ii) when shares are purchased in the open market, the average purchase price per share.

Participation in the Plan — Participation in the Plan is automatic, that is, a shareholder is automatically enrolled in the Plan when he or she purchases Common Shares of a Fund unless the shareholder specifically elects not to participate in the Plan. Shareholders who elect not to participate will receive all dividend distributions in cash. Shareholders who do not wish to participate in the Plan, must advise their Plan Agent in writing (at the address set forth below) that they elect not to participate in the Plan. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by writing to the Plan Agent.

Benefits of the Plan — The Plan provides an easy, convenient way for shareholders to make additional, regular investments in a Fund. The Plan promotes a long-term strategy of investing at a lower cost. All shares acquired pursuant to the Plan receive voting rights. In addition, if the market price plus commissions of a Fund’s shares is above the net asset value, participants in the Plan will receive shares of the Fund for less than they could otherwise purchase them and with a cash value greater than the value of any cash distribution they would have received. However, there may not be enough shares available in the market to make distributions in shares at prices below the net asset value. Also, since the Funds do not redeem shares, the price on resale may be more or less than the net asset value.

Plan Fees — There are no enrollment fees or brokerage fees for participating in the Plan. The Plan Agents’ service fees for handling the reinvestment of distributions are paid for by each Fund. However, brokerage commissions may be incurred when a Fund purchase shares on the open market and shareholders will pay a pro rata share of any such commissions.

Tax Implications — The automatic reinvestment of dividends and distributions will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. Therefore, income and capital gains may still be realized even though shareholders do not receive cash. The value of shares acquired pursuant to the Plan will generally be excluded from gross income to the extent that the cash amount reinvested would be excluded from gross income. If, when a Fund’s shares are trading at a market premium, a Fund issues shares pursuant to the Plan that have a greater fair market value than the amount of cash reinvested, it is possible that all or a portion of the discount from the market value (which may not exceed 5% of the fair market value of a Fund’s shares) could be viewed as a taxable distribution. If the discount is viewed as a taxable distribution, it is also possible that the taxable character of this discount would be allocable to all the shareholders, including shareholders who do not participate in the Plan. Thus, shareholders who do not participate in the Plan might be required to report as ordinary income a portion of their distributions equal to their allocable share of the discount.

Contact Information — All correspondence concerning the Plan, including any questions about the Plan, should be directed to the Plan Agent at the following addresses: Shareholders of BlackRock Apex Municipal Fund, Inc., BlackRock MuniAssets Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Insured Fund, Inc., and BlackRock MuniVest Fund II, Inc. should contact BNY Mellon Shareowner Services, P.0. Box 358035, Pittsburgh, PA 15252-8035, Telephone: (866) 216-0242 and shareholders of BlackRock MuniEnhanced Fund, Inc. and BlackRock Muni Intermediate Duration Fund, Inc. should contact Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078, Telephone: (800) 699-1BFM or overnight correspondence should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021.

 

 

 




80

ANNUAL REPORT

APRIL 30, 2009



 


 

Officers and Directors


 

 

 

 

 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Funds

 

Length of
Time Served
as a Director2

 

Principal Occupation(s) During Past Five Years

 

Number of
BlackRock-
Advised Funds
and Portfolios
Overseen

 

Public Directorships












Non-Interested Directors1

 

 

 

 

 

 

 

 












Richard E. Cavanagh
40 East 52nd Street
New York, NY 10022
1946

 

Chairman of
the Board
and Director

 

Since 2007

 

Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life Insurance Company of America since 1998; Trustee, Educational Testing Service since 1997; Senior Advisor since 2008 and Director since 1996, The Fremont Group; Adjunct Lecturer, Harvard University since 2007; Formerly President and Chief Executive Officer of The Conference Board, Inc. (global business research organization) from 1995 to 2007.

 

106 Funds
103 Portfolios

 

Arch Chemical (chemical and allied products)












Karen P. Robards
40 East 52nd Street
New York, NY 10022
1950

 

Vice Chair
of the Board,
Chair of
the Audit
Committee
and Director

 

Since 2007

 

Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development, (a not-for-profit organization) since 1987; Formerly Director of Enable Medical Corp. from 1996 to 2005; Formerly an investment banker at Morgan Stanley from 1976 to 1987.

 

106 Funds
103 Portfolios

 

AtriCure, Inc. (medical devices); Care Investment Trust, Inc. (health care real estate investment trust)












G. Nicholas Beckwith, III
40 East 52nd Street
New York, NY 10022
1945

 

Director

 

Since 2007

 

Chairman and Chief Executive Officer, Arch Street Management, LLC (Beckwith Family Foundation) and various Beckwith property companies since 2005; Chairman of the Board of Directors, University of Pittsburgh Medical Center since 2002; Board of Directors, Shady Side Hospital Foundation since 1977; Board of Directors, Beckwith Institute for Innovation In Patient Care since 1991; Member, Advisory Council on Biology and Medicine, Brown University since 2002; Trustee, Claude Worthington Benedum Foundation (charitable foundation) since 1989; Board of Trustees, Chatham University since 1981; Board of Trustees, University of Pittsburgh since 2002; Emeritus Trustee, Shady Side Academy since 1977; Formerly Chairman and Manager, Penn West Industrial Trucks LLC (sales, rental and servicing of material handling equipment) from 2005 to 2007; Formerly Chairman, President and Chief Executive Officer, Beckwith Machinery Company (sales, rental and servicing of construction and equipment) from 1985 to 2005; Formerly Member of the Board of Directors, National Retail Properties (REIT) from 2006 to 2007.

 

106 Funds
103 Portfolios

 

None












Kent Dixon
40 East 52nd Street
New York, NY 10022
1937

 

Director and
Member of
the Audit
Committee

 

Since 2007

 

Consultant/Investor since 1988.

 

106 Funds
103 Portfolios

 

None












Frank J. Fabozzi
40 East 52nd Street
New York, NY 10022
1948

 

Director and
Member of
the Audit
Committee

 

Since 2007

 

Consultant/Editor of The Journal of Portfolio Management since 2006; Professor in the Practice of Finance and Becton Fellow, Yale University, School of Management, since 2006; Formerly Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006.

 

106 Funds
103 Portfolios

 

None












Kathleen F. Feldstein
40 East 52nd Street
New York, NY 10022
1941

 

Director

 

Since 2007

 

President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. since 2005; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003.

 

106 Funds
103 Portfolios

 

The McClatchy Company (publishing)












James T. Flynn
40 East 52nd Street
New York, NY 10022
1939

 

Director and
Member of
the Audit
Committee

 

Since 2007

 

Formerly Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.

 

106 Funds
103 Portfolios

 

None












Jerrold B. Harris
40 East 52nd Street
New York, NY 10022
1942

 

Director

 

Since 2007

 

Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000.

 

106 Funds
103 Portfolios

 

BlackRock Kelso Capital Corp.













 

 

 




ANNUAL REPORT

APRIL 30, 2009

81



 


 

Officers and Directors (continued)


 

 

 

 

 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Funds

 

Length of
Time Served
as a Director2

 

Principal Occupation(s) During Past Five Years

 

Number of
BlackRock-
Advised Funds
and Portfolios
Overseen

 

Public Directorships












Non-Interested Directors1 (concluded)

 

 

 

 

 

 












R. Glenn Hubbard
40 East 52nd Street
New York, NY 10022
1958

 

Director

 

Since 2007

 

Dean of Columbia Business School since 2004; Columbia faculty member since 1988; Formerly Co-Director of Columbia Business School’s Entrepre-neurship Program from 1997 to 2004; Visiting Professor at the John F. Kennedy School of Government at Harvard University and the Harvard Business School since 1985 and at the University of Chicago since 1994; Formerly Chairman of the U.S. Council of Economic Advisers under the President of the United States from 2001 to 2003.

 

106 Funds
103 Portfolios

 

ADP (data and information services); KKR Financial Corporation (finance); Metropolitan Life Insurance Company (insurance)












W. Carl Kester
40 East 52nd Street
New York, NY 10022
1951

 

Director and
Member of
the Audit
Committee

 

Since 2007

 

George Fisher Baker Jr. Professor of Business Administration, Harvard Business School; Deputy Dean for Academic Affairs since 2006; Unit Head, Finance, Harvard Business School from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program of Harvard Business School from 1999 to 2005; Member of the faculty of Harvard Business School since 1981; Independent Consultant since 1978.

 

106 Funds
103 Portfolios

 

None


 

 



1

Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

 

 

2

Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows directors as joining the Funds’ board in 2007, each director first became a member of the board of directors of other legacy MLIM or legacy BlackRock Funds as follows: G. Nicholas Beckwith, III, 1999; Richard E. Cavanagh, 1994; Kent Dixon, 1988; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1998 and Karen P. Robards, 1998.


 

 

 

 

 

 

 

 

 

 

 












Interested Directors3

 

 

 

 

 

 

 

 












Richard S. Davis
40 East 52nd Street
New York, NY 10022
1945

 

Director

 

Since 2007

 

Managing Director, BlackRock, Inc. since 2005; Formerly Chief Executive Officer, State Street Research & Management Company from 2000 to 2005; Formerly Chairman of the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005; Formerly Chairman, SSR Realty from 2000 to 2004.

 

175 Funds
285 Portfolios

 

None












Henry Gabbay
40 East 52nd Street
New York, NY 10022
1947

 

Director

 

Since 2007

 

Formerly Consultant, BlackRock, Inc. from 2007 to 2008; Formerly Managing Director, BlackRock, Inc. from 1989 to 2007; Formerly Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; Formerly President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Formerly Treasurer of certain closed-end Funds in the BlackRock fund complex from 1989 to 2006.

 

175 Funds
285 Portfolios.

 

None


 

 



3

Mr. Davis is an “interested person,” as defined in the Investment Company Act of 1940, of the Funds based on his position with BlackRock, Inc. and its affiliates. Mr. Gabbay is an “interested person” of the Funds based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership of BlackRock, Inc. and PNC securities. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.


 

 

 

 

 

 

 

Effective January 1, 2009, Robert S. Salomon, Jr. retired as Director of the Funds. The Board wishes Mr. Salomon well in his retirement.

 

 

 

 


 

 

 




82

ANNUAL REPORT

APRIL 30, 2009



 


 

Officers and Directors (concluded)


 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Funds

 

Length of
Time
Served

 

Principal Occupation(s) During Past Five Years








Funds Officers1

 

 

 

 

 

 








Donald C. Burke
40 East 52nd Street
New York, NY 10022
1960

 

President
and Chief
Executive
Officer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2006; Formerly Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. (“FAM”) in 2006, First Vice President thereof from 1997 to 2005, Treasurer thereof from 1999 to 2006 and Vice President thereof from 1990 to 1997.








Anne F. Ackerley
40 East 52nd Street
New York, NY 10022
1962

 

Vice
President

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2000; Chief Operating Officer of BlackRock’s U.S. Retail Group since 2006; Formerly Head of BlackRock’s Mutual Fund Group from 2000 to 2006.








Neal J. Andrews
40 East 52nd Street
New York, NY 10022
1966

 

Chief
Financial
Officer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. (formerly PFPC Inc.) from 1992 to 2006.








Jay M. Fife
40 East 52nd Street
New York, NY 10022
1970

 

Treasurer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Formerly Assistant Treasurer of the MLIM/FAM-advised Funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.








Brian P. Kindelan
40 East 52nd Street
New York, NY 10022
1959

 

Chief
Compliance
Officer

 

Since 2007

 

Chief Compliance Officer of the BlackRock-advised Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005; Formerly Director and Senior Counsel of BlackRock Advisors, Inc. from 2001 to 2004.








Howard B. Surloff
40 East 52nd Street
New York, NY 10022
1965

 

Secretary

 

Since 2007

 

Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; Formerly General Counsel (U.S.) of Goldman Sachs Asset Management, L.P. from 1993 to 2006.


 

 



1

Officers of the Funds serve at the pleasure of the Board of Directors.



Custodians
State Street Bank and Trust Company2
Boston, MA 02101

The Bank of New York Mellon3
New York, NY 10286

Transfer Agent
Common Shares:
Computershare Trust Companies, N.A.2
Providence, RI 02940

Auction Agent
Preferred Shares:
BNY Mellon Shareowner Services2
Jersey City, NJ 07310

Transfer Agent
Common Shares and Preferred Shares:
BNY Mellon Shareowner Services3
Jersey City, NJ 07310

Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540

Independent Registered Public
Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036

Funds Address
BlackRock Closed-End Funds
c/o BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809

 

 

2

For BlackRock MuniEnhanced Fund, Inc. and BlackRock Muni Intermediate Duration Fund, Inc.

 

 

3

For BlackRock Apex Municipal Fund, Inc., BlackRock MuniAssets Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Insured Fund, Inc. and BlackRock MuniVest Fund II, Inc.


 

 

 




ANNUAL REPORT

APRIL 30, 2009

83




 


 

Additional Information


 


Dividend Policy


The Funds’ dividend policy is to distribute all or a portion of their net investment income to their shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Funds may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

 


Fund Certification


The Funds are listed for trading on the New York Stock Exchange (“NYSE”) and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. Each Fund filed with the Securities and Exchange Commission (“SEC”) the certification of their chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

 


Board Approvals


On September 12, 2008, the Board of MuniHoldings Insured voted unanimously to change certain investment guidelines. Under normal market conditions, MuniHoldings Insured is required to invest at least 80% of its total assets in municipal bonds either (i) insured under an insurance policy purchased by the Fund or (ii) insured under an insurance policy obtained by the issuer of the municipal bond or any other party. Historically, MuniHoldings Insured has had an additional non-fundamental investment policy limiting its purchase of insured municipal bonds to those bonds insured by insurance providers with claims-paying abilities rated AAA or Aaa at the time of investment.

Following the onset of the credit and liquidity crises currently troubling the financial markets, the applicable rating agencies lowered the claims-paying ability rating of most of the municipal bond insurance providers below the highest rating category. As a result, the Advisor recommended, and the Board approved, an amended policy with respect to the purchase of insured municipal bonds that such bonds must be insured by insurance providers or other entities with claims-paying abilities rated at least investment grade. This investment grade restriction is measured at the time of investment, and MuniHoldings Insured will not be required to dispose of municipal bonds it holds in the event of subsequent downgrades. The approved changes do not alter MuniHoldings Insured’s investment objective.

The Advisor and the Board believe the amended policies will allow the Advisor to better manage MuniHoldings Insured’s portfolio in the best interests of shareholders and to better meet its investment objective.

Effective September 13, 2008, following approval by the Funds’ Board and the applicable rating agencies, the Board amended the terms of the Funds’ Articles Supplementary, as applicable, in order to allow the Funds that have issued Preferred Shares to enter into TOB transactions, the proceeds of which were used to redeem a portion of the Funds’ Preferred Shares. Accordingly, the definition of Inverse Floaters was amended to incorporate the Funds’ permissible ratio of floating rate instruments into inverse floating rate instruments. Additionally, conforming changes and certain formula modifications concerning inverse floaters were made to the definitions of Moody’s Discount Factor and S&P Discount Factor, as applicable, to integrate the Funds’ investments in TOBs into applicable calculations.

 


Section 19 Notices


The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Each Fund will send you a Form 1099-DIV each calendar year that will tell you how to report these distributions for federal income tax purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 







 

 

Total Fiscal Year-to-Date
Cumulative Distributions by Character

 

Percentage of Fiscal Year-to-Date
Cumulative Distributions by Character

 

 

 


 



 

 

Net
Investment
Income

 

Net
Realized
Capital
Gains

 

Return
of
Capital

 

Total Per
Common
Share

 

Net
Investment
Income

 

Net
Realized
Capital
Gains

 

Return
of
Capital

 

Total Per
Common
Share

 



















BlackRock MuniHoldings Fund, Inc.

 

$

0.85346

 

 

$

0.01593

 

 

 

$

0.86939

 

98

%

 

2%

 

0%

 

100%

 

BlackRock MuniHoldings Fund II, Inc.

 

$

0.58691

 

 

 

 

 

 

$

0.58691

 

100

%

 

0%

 

0%

 

100%

 

BlackRock Muni Intermediate Duration Fund, Inc.

 

$

0.64101

 

 

 

 

 

 

$

0.64101

 

100

%

 

0%

 

0%

 

100%

 

BlackRock MuniVest Fund II, Inc.

 

$

0.43057

 

 

 

 

 

 

$

0.43057

 

100

%

 

0%

 

0%

 

100%

 


























 

 

 




84

ANNUAL REPORT

APRIL 30, 2009



 


 

Additional Information (continued)


 


General Information


The Funds do not make available copies of their Statements of Additional Information because the Funds’ shares are not continuously offered, which means that the Statement of Additional Information of each Fund has not been updated after completion of the respective Fund’s offerings and the information contained in each Fund’s Statement of Additional Information may have become outdated.

During the period, there were no material changes in the Funds’ investment objectives or policies or to the Funds’ charters or by-laws that were not approved by the shareholders or in the principal risk factors associated with investment in the Funds. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolio.

Quarterly performance, semi-annual and annual reports and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website into this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Funds at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 441-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

 

 

 




ANNUAL REPORT

APRIL 30, 2009

85



 


 

Additional Information (concluded)


 


BlackRock Privacy Principles


BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

 

 

 




86

ANNUAL REPORT

APRIL 30, 2009



This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Certain of the Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

 

 

(GO PAPERLESS LOGO)

(BLACKROCK LOGO)



#CEMUN18-4/09

 

 

Item 2 –

Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.

 

 

Item 3 –

Audit Committee Financial Expert – The registrant’s board of directors or trustees, as applicable (the “board of directors”) has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

 

 

Kent Dixon

 

Frank J. Fabozzi

 

James T. Flynn

 

W. Carl Kester

 

Karen P. Robards

 

Robert S. Salomon, Jr. (retired effective December 31, 2008)

 

 

 

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

 

 

 

Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements.

 

 

 

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

 

 

 

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.



 

 

Item 4 –

Principal Accountant Fees and Services


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Audit Fees

 

(b) Audit-Related Fees1

 

(c) Tax Fees2

 

(d) All Other Fees3

 

 


 


 


 


Entity Name

 

Current
Fiscal Year
End

 

Previous
Fiscal Year
End

 

Current
Fiscal Year
End

 

Previous
Fiscal Year
End

 

Current
Fiscal Year
End

 

Previous
Fiscal Year
End

 

Current
Fiscal Year
End

 

Previous
Fiscal Year
End


 


 


 


 


 


 


 


 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock MuniAssets Fund, Inc.

 

$

27,900

 

$

26,400

 

$0

 

$0

 

$

6,100

 

$

6,100

 

$

1,028

 

$

1,049

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The nature of the services include tax compliance, tax advice and tax planning.

3 The nature of the services include a review of compliance procedures and attestation thereto.

 

 

 

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

 

 

 

          The registrant’s audit committee (the “Committee”) has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the registrant’s affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operation or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 for all of the registrants the Committee oversees. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

 

 

 

          Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to one or more of its members the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

 

 

 

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

 

 

(f) Not Applicable

 

 

 

(g) Affiliates’ Aggregate Non-Audit Fees:


 

 

 

 

 

Entity Name

 

Current Fiscal Year
End

 

Previous Fiscal Year
End


 


 


BlackRock MuniAssets Fund, Inc.

 

$414,628

 

$412,149



 

 

 

 

(h) The registrant’s audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant’s investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

 

 

Regulation S-X Rule 2-01(c)(7)(ii) – $407,500, 0%

 

 

Item 5 –

Audit Committee of Listed Registrants – The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

 

 

 

Kent Dixon

 

Frank J. Fabozzi

 

James T. Flynn

 

W. Carl Kester

 

Karen P. Robards

 

Robert S. Salomon, Jr. (retired effective December 31, 2008)

 

 

Item 6 –

Investments

 

 

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

 

 

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of directors has delegated the voting of proxies for the Fund securities to the Fund’s investment adviser (“Investment Adviser”) pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and



 

 

 

 

concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at http://www.sec.gov.

 

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies – as of April 30, 2009.

 

 

 

(a)(1)

The registrant (or “Fund”) is managed by a team of investment professionals comprised of Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock and Walter O’Connor, Managing Director at BlackRock. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and/or selection of its investments. Messrs. Jaeckel and O’Connor have been members of the registrant’s portfolio management team since 1997 and 2006, respectively.


 

 

 

 

 




 

Portfolio Manager

 

Biography

 




 

Theodore R. Jaeckel, Jr.

 

Managing Director at BlackRock, Inc. since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2005 to 2006; Director of MLIM from 1997 to 2005.

 




 

Walter O’Connor

 

Managing Director of BlackRock, Inc. since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.

 





 

 

 

 

(a)(2)

As of April 30, 2009:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(ii) Number of Other Accounts Managed
and Assets by Account Type

 

(iii) Number of Other Accounts and
Assets for Which Advisory Fee is
Performance-Based

 

 


 


(i) Name of
Portfolio Manager

 

Other
Registered
Investment
Companies

 

Other Pooled
Investment
Vehicles

 

Other
Accounts

 

Other
Registered
Investment
Companies

 

Other Pooled
Investment
Vehicles

 

Other
Accounts


 


 


 


 


 


 


Theodore R. Jaeckel, Jr.

 

76

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

$17.23 Billion

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

Walter O’Connor

 

76

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

$17.23 Billion

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 

 

 

$

0

 


 

 

 

 

(iv)

Potential Material Conflicts of Interest

 

 

 

 

BlackRock and its affiliates (collectively, herein “BlackRock”) has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees



 

 

 

 

paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, its affiliates and significant shareholders and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or any of its affiliates or significant shareholders, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. In this connection, it should be noted that a portfolio manager may currently manage certain accounts that are subject to performance fees. In addition, a portfolio manager may assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees.

 

 

 

 

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time. This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base.

 

 

 

(a)(3)

As of April 30, 2009:

 

 

 

 

Portfolio Manager Compensation Overview

 

 

 

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock such as its Long-Term Retention and Incentive Plan.

 

 

 

Base compensation. Generally, portfolio managers receive base compensation based on their seniority and/or their position with the firm. Senior portfolio managers who perform additional management functions within the portfolio management group or within BlackRock may receive additional compensation for serving in these other capacities.



 

 

 

 

Discretionary Incentive Compensation

 

 

 

Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s seniority, role within the portfolio management team, teamwork and contribution to the overall performance of these portfolios and BlackRock. In most cases, including for the portfolio managers of the Fund, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment Officers determine the benchmarks against which the performance of funds and other accounts managed by each portfolio manager is compared and the period of time over which performance is evaluated. With respect to the portfolio managers, such benchmarks for the Fund include a combination of market-based indices (e.g., Barclays Capital Municipal Bond Index), certain customized indices and certain fund industry peer groups.

 

 

 

BlackRock’s Chief Investment Officers make a subjective determination with respect to the portfolio managers’ compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks noted above. Performance is measured on both a pre-tax and after-tax basis over various time periods including 1, 3, 5 and 10-year periods, as applicable.

 

 

 

Distribution of Discretionary Incentive Compensation

 

 

 

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods.

 

 

 

          Long-Term Retention and Incentive Plan (“LTIP”) — The LTIP is a long-term incentive plan that seeks to reward certain key employees. Beginning in 2006, awards are granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the attainment of certain performance goals, will be settled in BlackRock, Inc. common stock. Messrs. Jaeckel and O’Connor have each received awards under the LTIP.

 

 

 

          Deferred Compensation Program — A portion of the compensation paid to eligible BlackRock employees may be voluntarily deferred into an account that tracks the performance of certain of the firm’s investment products. Each participant in the deferred compensation program is permitted to allocate his deferred amounts among the various investment options. Messrs. Jaeckel and O’Connor have each participated in the deferred compensation program.

 

 

 

Other compensation benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:



 

 

 

 

          Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation. The RSP offers a range of investment options, including registered investment companies managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent employee investment direction, are invested into a balanced portfolio. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000. Messrs. Jaeckel and O’Connor are eligible to participate in these plans.

 

 

 

(a)(4)

Beneficial Ownership of Securities – April 30, 2009.


 

 

 

Portfolio Manager

 

Dollar Range of Equity
Securities Beneficially Owned


 


Theodore R. Jaeckel, Jr.

 

None

Walter O’Connor

 

None


 

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.

 

 

Item 10 –

Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.

 

 

Item 11 –

Controls and Procedures

 

 

11(a) –

The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

11(b) –

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.



 

 

Item 12 –

Exhibits attached hereto

 

 

12(a)(1) –

Code of Ethics – See Item 2

 

 

12(a)(2) –

Certifications – Attached hereto

 

 

12(a)(3) –

Not Applicable

 

 

12(b) –

Certifications – Attached hereto



 

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

BlackRock MuniAssets Fund, Inc.

 

 

 

 

By:

/s/ Donald C. Burke

 

 


 

 

Donald C. Burke

 

 

Chief Executive Officer of

 

 

BlackRock MuniAssets Fund, Inc.

 

 

 

Date: June 19, 2009

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

 

 

By:

/s/ Donald C. Burke

 

 


 

 

Donald C. Burke

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniAssets Fund, Inc.

 

 

 

Date: June 19, 2009

 

 

 

 

By:

/s/ Neal J. Andrews

 

 


 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

 

BlackRock MuniAssets Fund, Inc.

 

 

 

Date: June 19, 2009