BLACKROCK MUNIASSETS FUND, INC

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: John M. Perlowski, Chief Executive Officer, BlackRock MuniAssets Fund, Inc., 55 East 52nd Street, New York, NY 10055

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

Date of fiscal year end: 04/30/2019

Date of reporting period: 10/31/2018


Item 1 – Report to Stockholders


OCTOBER 31, 2018

 

SEMI-ANNUAL REPORT (UNAUDITED)

  LOGO

 

BlackRock MuniAssets Fund, Inc. (MUA)

BlackRock MuniEnhanced Fund, Inc. (MEN)

BlackRock MuniHoldings Fund, Inc. (MHD)

BlackRock MuniHoldings Fund II, Inc. (MUH)

BlackRock MuniHoldings Quality 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


The Markets in Review

Dear Shareholder,

In the 12 months ended October 31, 2018, ongoing strength in corporate profits drove the equity market higher, while rising interest rates constrained bond returns. Though the market’s appetite for risk remained healthy, risk-taking was tempered somewhat, as shorter-term, higher-quality securities led the bond market, and U.S. equities outperformed most international stock markets.

In international markets, the rising value of the U.S. dollar limited U.S. investors’ returns for the reporting period. When the U.S. dollar appreciates relative to foreign currencies, the value of international investments declines in U.S. dollar terms. Volatility rose in emerging market stocks, which are relatively sensitive to changes in the U.S. dollar. U.S.-China trade relations and debt concerns adversely affected the Chinese stock market, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe led to negative performance for European equities.

In fixed income markets, short-term U.S. Treasury interest rates rose the fastest, while longer-term rates slightly increased. This led to a negative return for long-term U.S. Treasuries and a substantial flattening of the yield curve. Many investors are concerned with the flattening yield curve as a harbinger of recession. However, given the extraordinary monetary measures in the last decade, we believe a more accurate barometer for the economy is the returns along the risk spectrums in stock and bond markets. Although the fundamentals in credit markets remained relatively solid, investment-grade bonds declined slightly, and high-yield bonds posted modest returns.

In response to rising growth and inflation, the U.S. Federal Reserve (the “Fed”) increased short-term interest rates four times during the reporting period. The Fed also continued to reduce its balance sheet during the reporting period, gradually reversing the unprecedented stimulus measures it enacted after the financial crisis. We believe the Fed is likely to continue to raise interest rates in the coming year. By our estimation, the Fed’s neutral interest rate, or the theoretical rate that is neither stimulative nor restrictive to the economy, is approximately 3.0%. With that perspective, the Fed’s current policy is still mildly stimulative to the U.S. economy, which leaves room for further Fed rate hikes to arrive at monetary policy that is a neutral factor for economic growth.

The U.S. economy continued to gain momentum despite the Fed’s modest reduction of economic stimulus; unemployment declined to 3.7%, the lowest rate of unemployment in almost 50 years. The number of job openings reached a record high of more than 7 million, which exceeded the total number of unemployed workers. Strong economic performance has justified the Fed’s somewhat faster pace of rate hikes, as several inflation measures and investors’ expectations for inflation have already surpassed the Fed’s target of 2.0% per year.

While markets have recently focused on the risk of rising long-term interest rates, we continue to believe the primary risk to economic expansion is trade protectionism that could lead to slower global trade and unintended consequences for the globalized supply chain. So far, U.S. tariffs have only had a modest negative impact on economic growth, but the fear of an escalating trade war has stifled market optimism somewhat, leading to higher volatility in risk assets. The outcome of trade negotiations between the United States and China is likely to influence the global growth trajectory and set the tone for free trade in many other nations. Easing of tensions could lead to greater upside for markets, while additional tariffs could adversely affect investor sentiment.

In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of October 31, 2018
     6-month   12-month

U.S. large cap equities
(S&P 500® Index)

  3.40%   7.35%

U.S. small cap equities
(Russell 2000® Index)

  (1.37)   1.85

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

  (9.92)   (6.85)

Emerging market equities
(MSCI Emerging Markets Index)

  (16.53)   (12.52)

3-month Treasury bills
(ICE BofAML 3-Month U.S. Treasury Bill Index)

  0.99   1.68

U.S. Treasury securities
(ICE BofAML 10-Year U.S. Treasury Index)

  (0.60)   (4.37)

U.S. investment grade bonds
(Bloomberg Barclays U.S. Aggregate Bond Index)

  (0.19)   (2.05)

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

  0.45   (0.31)

U.S. high yield bonds
(Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)

  1.14   0.98
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT


Table of Contents

 

      Page  

The Markets in Review

     2  

Semi-Annual Report:

  

Municipal Market Overview

     4  

The Benefits and Risks of Leveraging

     5  

Derivative Financial Instruments

     5  

Fund Summaries

     6  

Financial Statements:

  

Schedules of Investments

     20  

Statements of Assets and Liabilities

     72  

Statements of Operations

     74  

Statements of Changes in Net Assets

     76  

Statements of Cash Flows

     80  

Financial Highlights

     82  

Notes to Financial Statements

     89  

Disclosure of Investment Advisory Agreements

     99  

Director and Officer Information

     103  

Additional Information

     104  

Glossary of Terms Used in this Report

     107  

 

 

          3  


Municipal Market Overview  For the Reporting Period Ended October 31, 2018

 

Municipal Market Conditions

Municipal bonds experienced negative total returns during the period alongside fixed income broadly, as interest rates moved higher on the back of continued Fed policy normalization, fiscal stimulus, strong economic growth, and increased U.S. Treasury issuance. At the same time, demand for the asset class remained firm. Investors favored the tax-exempt income, diversification, quality, and value of municipal bonds, particularly given that tax reform ultimately lowered the top individual tax rate just 2.6% while eliminating deductions. During the 12 months ended October 31, 2018, municipal bond funds experienced net inflows of approximately $12.8 billion (based on data from the Investment Company Institute).

 

For the same 12-month period, total new issuance was moderate from a historical perspective at $366 billion (slightly above the $363 billion issued in the prior 12-month period), but displayed significant month-to-month volatility. Notably, issuance in December posted the highest monthly total on record at $56 billion, as issuers rushed deals to market ahead of the expected elimination of the tax-exemption for advanced refunding bonds and possibly private activity bonds (PABs). Ultimately, the final version of the Tax Cuts and Jobs Act left PABs unchanged, though the elimination of advanced refundings has suppressed supply in 2018, providing a powerful technical tailwind.

  S&P Municipal Bond Index

Total Returns as of October 31, 2018

  6 months: 0.45%

12 months: (0.31)%

 

A Closer Look at Yields

 

LOGO

From October 31, 2017 to October 31, 2018, yields on AAA-rated 30-year municipal bonds increased by 55 basis points (“bps”) from 2.83% to 3.38%, while 10-year rates increased by 72 bps from 2.01% to 2.73% and 5-year rates increased by 88 bps from 1.42% to 2.30% (as measured by Thomson Municipal Market Data). The municipal yield curve bear flattened over the 12-month period with the spread between 2- and 30-year maturities flattening by 43 bps, however remained a significant 78 bps steeper than the corresponding U.S. Treasury curve.

During the same time period, on a relative basis, tax-exempt municipal bonds strongly outperformed U.S. Treasuries with the greatest outperformance experienced in the front and intermediate portions of the yield curve. The relative positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income, incremental yield, and tax shelter in an environment where opportunities became increasingly scarce. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

The majority of municipal credits remain strong, despite well-publicized problems among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — continue to exhibit improved credit fundamentals. However, several states with the largest unfunded pension liabilities are faced with elevated borrowing costs and difficult budgetary decisions. Across the country on the local level, property values support credit stability. Standard & Poor’s recent decision to remove its “negative” outlook on New Mexico underscores the improvement in state finances as it was the only remaining state with the designation. Revenue bonds continue to drive performance as investors continue to seek higher yield bonds in the tobacco sector. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of October 31, 2018, and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (“AMT”). Capital gains distributions, if any, are taxable.

The Standard & Poor’s Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

 

4    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


The Benefits and Risks of Leveraging

 

The Funds may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Funds (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Funds’ shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Fund’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Fund’s financing cost of leverage is significantly lower than the income earned on a Fund’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Funds’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds had not used leverage. Furthermore, the value of the Funds’ 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 value of the Funds’ obligations under their respective leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that the Funds’ intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Fund’s Common Shares than if the Fund were not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Fund to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of the Funds’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Funds’ investment adviser will be higher than if the Funds did not use leverage.

To obtain leverage, each Fund has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Fund is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Fund may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Fund segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Fund’s obligations under the TOB Trust (including accrued interest), then the TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements imposed by the 1940 Act.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS      5  


Fund Summary  as of October 31, 2018    BlackRock MuniAssets Fund, Inc.

 

Investment Objective

BlackRock MuniAssets Fund, Inc.’s (MUA) (the “Fund”) investment objective is to provide high current income exempt from U.S. 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 U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests at least 65% of its assets in municipal bonds that are rated in the medium to lower rating categories by nationally recognized rating services (for example, Baa or lower by Moody’s Investors Service, Inc. (“Moody’s”) or BBB or lower by Standard & Poor’s Corporation (“S&P”), or securities that are unrated but are deemed by the investment adviser to be of comparable quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on New York Stock Exchange (“NYSE”)

  MUA

Initial Offering Date

  June 25, 1993

Yield on Closing Market Price as of October 31, 2018 ($12.65)(a)

  5.17%

Tax Equivalent Yield(b)

  8.73%

Current Monthly Distribution per Common Share(c)

  $0.0545

Current Annualized Distribution per Common Share(c)

  $0.6540

Economic Leverage as of October 31, 2018(d)

  13%

 

  (a) 

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.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change.

 
  (d) 

Represents TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance

Returns for the six months ended October 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUA(a)(b)

    (1.84 )%       1.19

Lipper High Yield Municipal Debt Funds(c)

    (1.78      0.27  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer months, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time that a wave of new issuance was hitting the market.

The Fund’s yield curve positioning made the largest contribution to performance. Positions in high-quality, short-dated, pre-refunded bonds performed relatively well and held their value better than long-dated holdings. The latter experienced larger price declines amid a steepening yield curve in which rates on intermediate- and long-term issues rose at a faster pace than those of short-term securities. (Prices and yields move in opposite directions.)

Positions in lower-quality issues continued to benefit results, as investor risk appetites remained robust for much of the reporting period. Holdings in non- investment-grade and unrated categories outperformed due to the combination of their higher income and stronger price performance. However, these bonds lagged late in the period once investor sentiment began to deteriorate.

At the sector level, positions in tobacco, health care and transportation issues all contributed to results. Investments in project finance and development-district bonds added value, as well.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns by offsetting the weakness in prices.

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.

 

 

6    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2018 (continued)    BlackRock MuniAssets Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 12.65      $ 13.21        (4.24 )%     $ 13.48      $ 12.51  

Net Asset Value

    13.83        14.01        (1.28      14.13        13.83  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector  

10/31/18

    04/30/18  

Health

    20     22

County/City/Special District/School District

    18       17  

Tobacco

    14       16  

Transportation

    12       15  

Education

    10       10  

Utilities

    10       9  

Corporate

    7       6  

State

    5       3  

Housing

    4       2  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    13

2019

    5  

2020

    12  

2021

    19  

2022

    8  

 

  (c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating  

10/31/18

   

04/30/18

 

AAA/Aaa

    1     1

AA/Aa

    19       18  

A

    10       7  

BBB/Baa

    19       21  

BB/Ba

    12       12  

B/B

    18       19  

CCC/Caa

    1       1  

N/R(b)

    20       21  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 1%, respectively, of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      7  


Fund Summary  as of October 31, 2018    BlackRock MuniEnhanced Fund, Inc.

 

Investment Objective

BlackRock MuniEnhanced Fund, Inc.’s (MEN) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests primarily in long-term municipal bonds that are rated investment grade quality or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment and invests primarily in long-term municipal bonds with maturities of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on NYSE

  MEN

Initial Offering Date

  March 2, 1989

Yield on Closing Market Price as of October 31, 2018 ($9.69)(a)

  5.94%

Tax Equivalent Yield(b)

  10.03%

Current Monthly Distribution per Common Share(c)

  $0.0480

Current Annualized Distribution per Common Share(c)

  $0.5760

Economic Leverage as of October 31, 2018(d)

  41%

 

 

  (a) 

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.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change.

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance

Returns for the six months ended October 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MEN(a)(b)

    (4.92 )%       (0.30 )% 

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    (3.47      (0.13

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time that a wave of new issuance was hitting the market.

The Fund’s quality focus detracted from performance given the underperformance of higher-rated debt.

Holdings in longer-term bonds detracted as their weak price performance outweighed the benefit of added income. An allocation to low-coupon and zero-coupon bonds, which have a higher sensitivity to interest rates, also hurt performance.

Although yields rose during the period, reinvestment had an adverse effect on the Fund’s income since the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.

The use of leverage, while providing additional income, was a net detractor since it amplified the impact of falling prices.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns by offsetting the weakness in prices.

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.

 

 

8    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2018 (continued)    BlackRock MuniEnhanced Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18     

04/30/18

     Change      High      Low  

Market Price

  $ 9.69      $ 10.48        (7.54 )%     $ 10.63      $ 9.63  

Net Asset Value

    11.11        11.46        (3.05      11.63        11.10  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18    

04/30/18

 

Transportation

    25     24

County/City/Special District/School District

    15       17  

Health

    14       14  

State

    13       16  

Utilities

    12       13  

Education

    9       9  

Finance

    7        

Housing

    2       2  

Corporate

    2       3  

Tobacco

    1       2  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    5

2019

    13  

2020

    3  

2021

    11  

2022

    8  

 

  (c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/18     04/30/18  

AAA/Aaa

    6     7

AA/Aa

    48       51  

A

    24       23  

BBB/Baa

    13       13  

BB/Ba

    2       2  

N/R(b)

    7       4  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and less than 1%, respectively, of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      9  


Fund Summary  as of October 31, 2018    BlackRock MuniHoldings Fund, Inc.

 

Investment Objective

BlackRock MuniHoldings Fund, Inc.’s (MHD) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds that are rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on NYSE

  MHD

Initial Offering Date

  May 2, 1997

Yield on Closing Market Price as of October 31, 2018 ($14.03)(a)

  5.99%

Tax Equivalent Yield(b)

  10.12%

Current Monthly Distribution per Common Share(c)

  $0.0700

Current Annualized Distribution per Common Share(c)

  $0.8400

Economic Leverage as of October 31, 2018(d)

  39%

 

  (a) 

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.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The monthly distribution per Common Share, declared on December 3, 2018, was decreased to $0.0675 per share. 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 change in the future.

 
  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance

Returns for the six months ended October 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MHD(a)(b)

    (3.73 )%       0.28

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    (3.47      (0.13

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer months, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time that a wave of new issuance was hitting the market.

The Fund’s yield curve positioning made the largest contribution to performance. Positions in high-quality, short-dated, pre-refunded bonds performed relatively well and held their value better than longer-dated holdings. The latter experienced larger price declines amid a steepening yield curve in which rates on intermediate- and long-term issues rose at a faster pace than those of short-term securities. (Prices and yields move in opposite directions.)

Positions in lower-quality issues continued to benefit results, as investor risk appetites remained robust for much of the reporting period. Holdings in lower-rated investment-grade bonds and high-yield issues outperformed due to the combination of their higher income and stronger price performance. However, these bonds lagged late in the period once investor sentiment began to deteriorate.

At the sector level, positions in tobacco and state tax-backed issues contributed to results. Investments in transportation and corporate-related debt added value, as well.

The use of leverage, while providing additional income, was a net detractor since it amplified the impact of falling prices.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns by offsetting the weakness in prices.

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.

 

 

10    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2018 (continued)    BlackRock MuniHoldings Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 14.03      $ 14.98        (6.34 )%     $ 16.21      $ 14.02  

Net Asset Value

    16.01        16.41        (2.44      16.58        16.01  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Transportation

    22     24

Health

    19       18  

Utilities

    14       14  

County/City/Special District/School District

    12       12  

State

    11       11  

Education

    9       9  

Tobacco

    6       6  

Corporate

    6       5  

Housing

    1       1  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    4

2019

    22  

2020

    11  

2021

    12  

2022

    10  

 

  (c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/18     04/30/18  

AAA/Aaa

    4     3

AA/Aa

    42       44  

A

    21       20  

BBB/Baa

    15       15  

BB/Ba

    4       4  

B

    4       4  

N/R(b)

    10       10  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 1%, respectively, of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      11  


Fund Summary  as of October 31, 2018    BlackRock MuniHoldings Fund II, Inc.

 

Investment Objective

BlackRock MuniHoldings Fund II, Inc.’s (MUH) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds that are rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on NYSE

  MUH

Initial Offering Date

  February 27, 1998

Yield on Closing Market Price as of October 31, 2018 ($12.67)(a)

  5.82%

Tax Equivalent Yield(b)

  9.83%

Current Monthly Distribution per Common Share(c)

  $0.0615

Current Annualized Distribution per Common Share(c)

  $0.7380

Economic Leverage as of October 31, 2018(d)

  41%

 

  (a) 

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.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change.

 
  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance

Returns for the six months ended October 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUH(a)(b)

    (5.24 )%       0.05

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    (3.47      (0.13

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time that a wave of new issuance was hitting the market.

The Fund generated a small gain at net asset value. Its return was primarily derived from income given that bond prices fell.

Positions in lower-rated bonds performed well amid investors’ ongoing preference for higher-yielding issues. Conversely, holdings in investment-grade issues produced weaker returns.

The Fund’s high concentration in short-maturity, pre-refunded securities aided results due to the strong relative performance of short-term securities. On the other end of the spectrum, holdings in longer-term bonds detracted as their weak price performance outweighed the benefit of added income.

The use of leverage, while providing additional income, was a net detractor since it amplified the impact of falling prices.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns by offsetting the weakness in prices.

An allocation to low-coupon and zero-coupon bonds, which have a higher sensitivity to interest rates, also hurt performance.

Although yields rose during the period, reinvestment had an adverse effect on the Fund’s income since the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.

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.

 

 

12    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2018 (continued)    BlackRock MuniHoldings Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 12.67      $ 13.75        (7.85 )%     $ 14.46      $ 12.65  

Net Asset Value

    14.70        15.11        (2.71      15.27        14.70  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Health

    20     20

Transportation

    18       20  

State

    16       15  

County/City/Special District/School District

    12       13  

Utilities

    10       10  

Education

    7       9  

Tobacco

    5       6  

Financing

    5        

Corporate

    5       5  

Housing

    2       2  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    3

2019

    24  

2020

    11  

2021

    11  

2022

    6  

 

  (c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/18     04/30/18  

AAA/Aaa

    4     4

AA/Aa

    48       46  

A

    17       20  

BBB/Baa

    15       14  

BB/Ba

    4       4  

B

    4       4  

N/R(b)

    8       8  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade each less than 1% and 2%, respectively, of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      13  


Fund Summary  as of October 31, 2018    BlackRock MuniHoldings Quality Fund, Inc.

 

Investment Objective

BlackRock MuniHoldings Quality Fund, Inc.’s (MUS) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests at least 80% of its assets in investment grade municipal obligations, and obligations deemed to be of comparable quality by the investment adviser at the time of investment, with remaining maturities of one year or more at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on NYSE

  MUS

Initial Offering Date

  May 1, 1998

Yield on Closing Market Price as of October 31, 2018 ($11.17)(a)

  5.43%

Tax Equivalent Yield(b)

  9.17%

Current Monthly Distribution per Common Share(c)

  $0.0505

Current Annualized Distribution per Common Share(c)

  $0.6060

Economic Leverage as of October 31, 2018(d)

  39%

 

  (a) 

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.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change.

 
  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance

Returns for the six months ended October 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUS(a)(b)

    (7.40 )%       (0.21 )% 

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    (3.47      (0.13

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c)

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time that a wave of new issuance was hitting the market.

The Fund’s emphasis on higher-quality bonds, which lagged the overall market, was the primary factor in its underperformance. However, positions in lower-rated investment-grade securities, to the extent that they were held in the portfolio, aided results. The improving domestic economy helped support the underlying fundamentals of lower-quality issues. In addition, this market segment benefited from the combination of limited supply and strong investor demand.

Consistent with the broader market environment, the Fund’s positions in longer-term bonds detracted from returns.

The Fund’s performance was helped by positions in the transportation, pre-refunded, and utilities sectors. Pre-refunded bonds outperformed due to their attractive yields and below-average sensitivity to interest rate movements.

Reinvestment had an adverse impact on the Fund’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.

Holdings in Illinois and New Jersey bonds were additional contributors of note. Economic tailwinds helped improve the credit fundamentals of both states by boosting income and sales tax revenues. This trend, coupled with a limited supply of high-yielding, tax-exempt bonds, led to outperformance for these issuers.

The use of leverage, while providing additional income, was a net detractor since it amplified the impact of falling prices.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns by offsetting the weakness in prices.

Positions in standard-structure 5% coupon issues, which outperformed discount coupon bonds, were also additive.

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.

 

 

14    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2018 (continued)    BlackRock MuniHoldings Quality Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 11.17      $ 12.40        (9.92 )%     $ 12.57      $ 11.10  

Net Asset Value

    12.96        13.35        (2.92      13.48        12.96  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Transportation

    32     31

County/City/Special District/School District

    20       26  

Utilities

    14       14  

Education

    10       7  

State

    9       8  

Health

    8       8  

Housing

    4       3  

Tobacco

    2       2  

Corporate

    1       1  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

CALL/MATURITY SCHEDULE (b)

 

Calendar Year Ended December 31,

       

2018

    5

2019

    12  

2020

    4  

2021

    18  

2022

    2  

 

  (b) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/18     04/30/18  

AAA/Aaa

    4     6

AA/Aa

    53       52  

A

    28       28  

BBB/Baa

    11       10  

N/R

    4       4  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
 

 

 

FUND SUMMARY      15  


Fund Summary  as of October 31, 2018    BlackRock Muni Intermediate Duration Fund, Inc.

 

Investment Objective

BlackRock Muni Intermediate Duration Fund, Inc.’s (MUI) (the “Fund”) investment objective is to provide common shareholders with high current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests at least 75% of its assets in municipal bonds that are rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment and invests at least 80% of its assets in municipal bonds with a duration of three to ten years at the time of investment. The Fund expects to maintain a dollar-weighted average portfolio duration, as calculated by the investment adviser, of three to ten years. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on NYSE

  MUI

Initial Offering Date

  August 1, 2003

Yield on Closing Market Price as of October 31, 2018 ($12.66)(a)

  4.22%

Tax Equivalent Yield(b)

  7.13%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Economic Leverage as of October 31, 2018(d)

  40%

 

  (a) 

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.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change.

 
  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance

Returns for the six months ended October 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUI(a)(b)

    (0.68 )%       0.22

Lipper Intermediate Municipal Debt Funds(c)

    (1.05      0.37  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time that a wave of new issuance was hitting the market.

The Fund’s positions in lower-duration bonds, including pre-refunded securities, were strong performers due do their defensive nature and lower sensitivity to interest-rate movements.

Positions in BBB and A rated issues, which outperformed higher quality securities, aided results. Holdings in the transportation sector, as well as in Illinois and New Jersey issues, were particularly strong performers. Economic tailwinds helped improve the credit fundamentals of both states by boosting income and sales tax revenues. This trend, coupled with a limited supply of high-yielding, tax-exempt bonds, led to outperformance for these issuers.

The Fund’s yield curve positioning, which featured concentrations in the 10- to 15-year maturity range, also helped performance.

The use of leverage, while providing additional income, was a net detractor since it amplified the impact of falling prices.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns by offsetting the weakness in prices.

At the sector level, an allocation to tobacco issues was a key detractor.

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.

 

 

16    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2018 (continued)    BlackRock Muni Intermediate Duration Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 12.66      $ 13.01        (2.69 )%     $ 13.33      $ 12.30  

Net Asset Value

    14.66        14.93        (1.81      15.15        14.66  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Transportation

    30     27

County/City/Special District/School District

    16       17  

State

    14       16  

Health

    12       10  

Education

    11       12  

Utilities

    8       9  

Corporate

    3       5  

Tobacco

    3       3  

Housing

    3       1  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    1

2019

    8  

2020

    7  

2021

    15  

2022

    5  

 

  (c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/18     04/30/18  

AAA/Aaa

    6     5

AA/Aa

    33       37  

A

    34       32  

BBB/Baa

    18       18  

BB/Ba

    2       2  

B

    3       1  

N/R(b)

    4       5  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (b) 

The investment adviser evaluates the credit quality of unrated Investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      17  


Fund Summary  as of October 31, 2018    BlackRock MuniVest Fund II, Inc.

 

Investment Objective

BlackRock MuniVest Fund II, Inc.’s (MVT) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds that are rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on NYSE

  MVT

Initial Offering Date

  March 29, 1993

Yield on Closing Market Price as of October 31, 2018 ($12.80)(a)

  5.95%

Tax Equivalent Yield(b)

  10.05%

Current Monthly Distribution per Common Share(c)

  $0.0635

Current Annualized Distribution per Common Share(c)

  $0.7620

Economic Leverage as of October 31, 2018(d)

  40%

 

  (a) 

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.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change.

 
  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance

Returns for the six months ended October 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MVT(a)(b)

    (6.34 )%       0.09

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    (3.47      (0.13

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b)

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds experienced lackluster returns in the past six months, with price weakness outweighing the contribution from income. After trading sideways through the summer months, tax-exempt issues fell sharply in September and October. During this time, investors reacted to commentary from Fed Chairman Jerome Powell indicating that future monetary policy tightening could be more aggressive than the markets had anticipated. Supply and demand factors also had an adverse effect on returns in the latter part of the period, with mutual fund outflows occurring at the same time that a wave of new issuance was hitting the market.

The Fund’s yield curve positioning made the largest contribution to performance. Positions in high-quality, short-dated, pre-refunded bonds performed relatively well and held their value better than long-dated holdings. The latter experienced larger price declines amid a steepening yield curve in which rates on intermediate- and long-term issues rose at a faster pace than those of short-term securities. (Prices and yields move in opposite directions.)

Positions in lower-quality issues continued to benefit results, as investor risk appetites remained robust for much of the reporting period. Holdings in lower-rated investment-grade bonds and high-yield issues outperformed due to the combination of their higher income and stronger price performance. However, these bonds lagged late in the period once investor sentiment began to deteriorate.

At the sector level, positions in tobacco, tax-backed and corporate-related issues all contributed to results. Investments in project finance and development-district debt added value, as well. An allocation to the health care sector was a slight detractor.

The use of leverage, while providing additional income, was a net detractor since it amplified the impact of falling prices.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns by offsetting the weakness in prices.

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.

 

 

18    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2018 (continued)    BlackRock MuniVest Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18      04/30/18      Change      High      Low  

Market Price

  $ 12.80      $ 14.05        (8.90 )%     $ 14.25      $ 12.77  

Net Asset Value

    14.36        14.75        (2.64      14.88        14.36  

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector Allocation   10/31/18     04/30/18  

Transportation

    24     29

Health

    14       18  

Utilities

    14       13  

County/City/Special District/School District

    14       9  

State

    11       12  

Education

    9       6  

Corporate

    7       6  

Tobacco

    6       6  

Housing

    1       1  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    6

2019

    16  

2020

    10  

2021

    11  

2022

    8  

 

  (c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/18     04/30/18  

AAA/Aaa

    3     4

AA/Aa

    40       42  

A

    22       20  

BBB/Baa

    16       18  

BB/Ba

    4       5  

B

    4       5  

N/R(b)

    11       6  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2018 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 1%, respectively, of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      19  


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 88.6%

 

Alabama — 1.3%

 

County of Jefferson Alabama Sewer Revenue, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42

  $ 3,745     $ 4,228,330  

State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/20(a)

    2,165       2,322,114  
   

 

 

 
    6,550,444  
Alaska — 1.2%            

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A:

   

4.63%, 06/01/23

    225       225,043  

5.00%, 06/01/32

    1,500       1,492,635  

5.00%, 06/01/46

    4,290       4,169,022  
   

 

 

 
    5,886,700  
Arizona — 2.6%            

Arizona IDA, Refunding RB, Series A(b):

   

Basis Schools, Inc. Projects, 5.13%, 07/01/37

    960       972,989  

Odyssey Preparatory Academy Project, 5.50%, 07/01/52

    1,500       1,408,395  

City of Phoenix Arizona IDA, RB:

   

Great Hearts Academies — Veritas Project, 6.40%, 07/01/21(a)

    425       470,339  

Great Hearts Academies — Veritas Projects, 6.30%, 07/01/21(a)

    500       552,055  

Legacy Traditional Schools Project, Series A, 6.50%, 07/01/34(b)

    570       618,689  

Legacy Traditional Schools Projects, Series A, 6.75%, 07/01/44(b)

    1,000       1,085,310  

City of Phoenix Arizona IDA, Refunding RB(b):

   

Basis Schools, Inc. Projects, 5.00%, 07/01/35

    305       307,559  

Basis Schools, Inc. Projects, 5.00%, 07/01/45

    855       852,444  

Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/35

    260       262,181  

Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/46

    290       288,689  

Legacy Traditional School Projects, 5.00%, 07/01/35

    320       323,411  

Legacy Traditional School Projects, 5.00%, 07/01/45

    255       255,125  

County of La Paz IDA, RB, Imagine Schools Desert West Middle Project, 5.88%, 06/15/48(b)

    875       841,733  

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

    1,650       1,871,067  

State of Arizona IDA, RB, Academies of Math & Science Project, Series B, 5.13%, 07/01/47(b)

    665       612,139  

State of Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.25%, 07/01/47(b)

    1,765       1,788,192  

University Medical Center Corp., RB, 6.50%, 07/01/19(a)

    500       514,580  
   

 

 

 
    13,024,897  
California — 6.8%            

California Municipal Finance Authority, ARB, Senior Lien-Linxs APM Project, AMT, 4.00%, 12/31/47

    1,650       1,565,471  

California Municipal Finance Authority, RB, Urban Discovery Academy Project(b):

   

5.50%, 08/01/34

    315       309,932  

6.00%, 08/01/44

    665       666,523  

6.13%, 08/01/49

    580       583,416  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A:

   

5.00%, 02/01/36

    345       375,074  

5.00%, 02/01/37

    255       276,287  

California School Finance Authority, RB:

   

Alliance for College Ready Public School — 2023 Union LLC Project, Series A, 6.40%, 07/01/48

    1,570       1,728,068  

Value Schools, 6.65%, 07/01/33

    435       479,879  

Value Schools, 6.90%, 07/01/43

    975       1,071,515  
Security   Par
(000)
    Value  
California (continued)            

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center(b):

   

5.25%, 12/01/38

  $ 580     $ 609,841  

Series A, 5.00%, 12/01/46

    725       737,318  

Series A, 5.25%, 12/01/56

    620       639,914  

California Statewide Communities Development Authority, Refunding RB, American Baptist Homes of the West, 6.25%, 10/01/39

    2,175       2,252,996  

California Statewide Financing Authority, RB, Asset-Backed, Tobacco Settlement, Series B, 6.00%, 05/01/43

    1,650       1,649,951  

City & County of San Francisco California Redevelopment Agency, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Series D(b)(c):

   

0.00%, 08/01/26

    1,250       864,950  

0.00%, 08/01/43

    1,500       418,035  

City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:

   

6.50%, 05/01/36

    900       989,613  

6.50%, 05/01/42

    2,220       2,441,045  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40

    375       433,624  

County of Los Angeles California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.:

   

5.60%, 06/01/36

    1,285       1,286,709  

5.70%, 06/01/46

    3,600       3,602,700  

County of Riverside California Transportation Commission, RB, Senior Lien, Series A, 5.75%, 06/01/48

    2,885       3,137,062  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.25%, 06/01/47

    1,120       1,126,115  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1:

   

4.75%, 06/01/25

    880       882,182  

5.00%, 06/01/37

    5,580       5,593,838  
   

 

 

 
    33,722,058  
Colorado — 1.4%            

Arista Metropolitan District, GO, Refunding, Series A:

   

5.00%, 12/01/38

    1,240       1,241,587  

5.13%, 12/01/48

    880       880,827  

Castle Oaks Metropolitan District No. 3, GO, 6.25%, 12/01/20(a)

    500       555,065  

Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47(b)

    575       573,212  

Colorado Health Facilities Authority, Refunding RB, Sunny Vista Living Center Project, Series A, 6.13%, 12/01/45(b)

    335       346,330  

Copperleaf Metropolitan District No. 2, GO, Refunding, 5.75%, 12/01/45

    720       747,525  

North Holly Metropolitan District, GOL, Series A, 5.50%, 12/01/48

    500       476,015  

Prairie Farm Metropolitan District, GO, Series A, 5.25%, 12/01/48

    760       732,169  

Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project, 6.00%, 01/15/34

    1,500       1,551,810  
   

 

 

 
    7,104,540  
Connecticut — 0.9%            

Mohegan Tribal Finance Authority, RB, 7.00%, 02/01/45(b)

    1,400       1,417,668  

Mohegan Tribe of Indians of Connecticut, RB, Series A, 6.75%, 02/01/45(b)

    971       1,032,777  

Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 02/01/30(b)

    1,835       1,990,241  
   

 

 

 
    4,440,686  
 

 

 

20    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Delaware — 0.9%            

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

  $ 1,000     $ 1,057,580  

State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45

    3,180       3,298,932  
   

 

 

 
    4,356,512  
Florida — 8.8%            

Boggy Creek Improvement District, Refunding RB, Special Assessment Bonds, 5.13%, 05/01/43

    1,460       1,442,232  

Capital Region Community Development District, Refunding, Special Assessment, Capital Improvement Revenue Bond, Series A-1, 5.13%, 05/01/39

    1,500       1,451,940  

Capital Trust Agency, Inc., RB, Silver Creek St. Augustine Project Series A(d)(e):

   

1st Mortgage, 8.25%, 01/01/44

    515       360,500  

1st Mortgage, 8.25%, 01/01/49

    1,105       773,500  

5.75%, 01/01/50

    655       622,250  

University Bridge, LLC Student Housing Project, 5.25%, 12/01/58(b)

    1,910       1,847,448  

County of Collier Florida IDA, Refunding RB, Arlington of Naples Project, Series A, 8.13%, 05/15/44(b)

    630       607,975  

County of Miami-Dade Florida IDA, RB, Doral Academy Project, 5.00%, 01/15/48

    915       940,766  

County of Palm Beach Florida Health Facilities Authority, RB, Acts Retirement Life Community, 5.50%, 11/15/20(a)

    3,500       3,727,990  

County of Palm Beach Florida Health Facilities Authority, Refunding RB, Series A, 7.25%, 06/01/34

    500       561,115  

Florida Development Finance Corp., RB:

   

Renaissance Charter School, Series A, 5.75%, 06/15/29

    690       721,913  

Renaissance Charter School, Series A, 6.00%, 06/15/34

    835       872,492  

Renaissance Charter School, Series A, 6.13%, 06/15/44

    3,180       3,298,042  

Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 08/01/29(b)(f)

    1,550       1,588,161  

Florida Higher Educational Facilities Financial Authority, RB, Jacksonville University Project, Series A-1, 5.00%, 06/01/48(b)

    1,115       1,142,239  

Greeneway Improvement District, RB, Special Assessment Bonds, 5.13%, 05/01/43

    1,820       1,801,218  

Harbor Bay Community Development District Florida, Special Assessment Bonds, Series A, 7.00%, 05/01/33

    380       381,273  

Lakewood Ranch Stewardship District Special Assessment Bonds, Village of Lakewood Ranch Sector Projects, 4.00%, 05/01/21

    105       105,664  

Lakewood Ranch Stewardship District Special Assessment Bonds, Refunding, Lakewood Center & New Sector Projects, 8.00%, 05/01/40

    1,485       1,666,942  

Lakewood Ranch Stewardship District Special Assessment Bonds, Village of Lakewood Ranch Sector Projects:

   

4.25%, 05/01/26

    145       144,356  

5.13%, 05/01/46

    860       845,672  

Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(a)

    4,550       5,163,203  

Midtown Miami Community Development District, Refunding, Special Assessment Bonds:

   

Series A, 5.00%, 05/01/37

    845       871,043  

Series B, 5.00%, 05/01/37

    495       510,256  

Santa Rosa Bay Bridge Authority, RB, 6.25%, 07/01/28(d)(e)

    3,845       2,845,589  

Tolomato Community Development District, Refunding, Special Assessment Bonds(g):

   

Convertible CAB, Series A3, 6.61%, 05/01/40

    580       563,853  

Convertible CAB, Series A4, 6.61%, 05/01/40

    305       247,950  

Series 2015-2, 6.61%, 05/01/40

    805       527,492  

Tolomato Community Development District:

   

Series 1, 6.61%, 05/01/40(d)(e)(g)

    1,305       1,039,354  
Security   Par
(000)
    Value  
Florida (continued)            

Tolomato Community Development District (continued):

   

Series 1, 6.65%, 05/01/40(d)(e)

  $ 50     $ 47,644  

Series 3, 6.61%, 05/01/40(d)(e)

    875       9  

Series 3, 6.65%, 05/01/40(d)(e)

    710       7  

Trout Creek Community Development District, Special Assessment Bonds:

   

5.38%, 05/01/38

    430       420,854  

5.50%, 05/01/49

    1,105       1,090,513  

Village Community Development District No. 9, Special Assessment Bonds:

   

6.75%, 05/01/31

    1,480       1,613,688  

7.00%, 05/01/41

    2,430       2,706,898  

5.50%, 05/01/42

    1,160       1,220,517  
   

 

 

 
    43,772,558  
Georgia — 1.1%            

County of Clayton Georgia Development Authority, Refunding RB, Delta Air Lines, Inc. Project, Series A, 8.75%, 06/01/29

    3,365       3,663,543  

County of Gainesville & Hall Georgia Development Authority, Refunding RB, Acts Retirement Life Community, Series A-2(a):

   

6.38%, 11/15/19

    700       730,429  

6.63%, 11/15/19

    880       920,409  
   

 

 

 
    5,314,381  
Guam — 0.3%            

Territory of Guam, GO, Series A:

   

6.00%, 11/15/19

    140       141,749  

7.00%, 11/15/19(a)

    1,115       1,171,753  
   

 

 

 
    1,313,502  
Illinois — 6.6%            

Chicago Board of Education, GO:

   

Series H, 5.00%, 12/01/46

    720       719,957  

Project, Series C, 5.25%, 12/01/35

    1,655       1,685,071  

Chicago Board of Education, GO, Refunding, Series B, 4.00%, 12/01/35

    745       669,591  

Chicago Board of Education, GO, Dedicated Revenues:

   

Series A, 5.00%, 12/01/42

    1,020       1,003,129  

Refunding, 5.00%, 12/01/27

    900       930,492  

Refunding, 5.00%, 12/01/31

    1,000       1,020,450  

Refunding Series F, 5.00%, 12/01/22

    675       700,157  

Refunding Series G, 5.00%, 12/01/44

    2,150       2,153,032  

City of Chicago Illinois, GO, Refunding, Series A, 6.00%, 01/01/38

    1,260       1,397,844  

Illinois Finance Authority, Refunding RB:

   

Friendship Village of Schaumburg, 7.25%, 02/15/20(a)

    4,000       4,246,680  

Lutheran Home & Services Obligated Group, 5.63%, 05/15/42

    2,395       2,471,856  

Primary Health Care Centers Program, 6.60%, 07/01/24

    780       770,515  

Rogers Park Montessori School Project, Series 2014, 6.00%, 02/01/34

    365       376,366  

Rogers Park Montessori School Project, Series 2014, 6.13%, 02/01/45

    860       883,728  

Roosevelt University Project, 6.50%, 10/01/19(a)

    2000       2,079,760  

Metropolitan Pier & Exposition Authority, RB, Series A, McCormick Place Expansion Project:

   

Bonds, 0.00%, 12/15/56(c)

    5,005       639,739  

5.50%, 06/15/53

    2,370       2,501,061  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project Bonds, Series B, 0.00%, 12/15/54(c)

    6,980       993,882  

Railsplitter Tobacco Settlement Authority, RB(a):

   

5.50%, 06/01/21

    180       194,348  

6.00%, 06/01/21

    710       775,441  
 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)            

State of Illinois, GO:

   

Series A, 5.00%, 01/01/33

  $ 740     $ 750,752  

Series D, 5.00%, 11/01/28

    1,365       1,405,868  

5.25%, 02/01/29

    1,000       1,041,750  

State of Illinois, GO, Refunding, Series B, 5.00%, 10/01/29

    1,975       2,026,172  

Village of Lincolnshire Illinois, Special Tax Bonds, Sedgebrook Project, 6.25%, 03/01/34

    1,659       1,662,102  
   

 

 

 
    33,099,743  
Indiana — 2.5%            

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

   

6.75%, 01/01/34

    825       942,241  

7.00%, 01/01/44

    2,000       2,295,360  

City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village Project, 6.25%, 01/01/29(b)

    2,315       2,354,540  

County of Allen Indiana, RB, StoryPoint Fort Wayne Project, Series A-1(b):

   

6.63%, 01/15/34

    290       303,868  

6.75%, 01/15/43

    525       549,118  

6.88%, 01/15/52

    2,450       2,567,600  

Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges East End Crossing Project, Series A, AMT:

   

5.00%, 07/01/44

    470       492,034  

5.00%, 07/01/48

    1,555       1,623,840  

Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 01/15/51(b)

    1,190       1,209,968  
   

 

 

 
    12,338,569  
Iowa — 2.3%            

Iowa Finance Authority, Refunding RB:

   

Iowa Fertilizer Co. Project, Series B, 5.25%, 12/01/50(f)

    2,085       2,214,103  

Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.50%, 12/01/22

    5       5,010  

Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.25%, 12/01/25

    2,190       2,313,625  

Sunrise Retirement Community Project, 5.50%, 09/01/37

    1,355       1,363,713  

Iowa Tobacco Settlement Authority, Refunding RB:

   

Asset-Backed, CAB, Series B, 5.60%, 06/01/34

    795       797,250  

Series C, 5.38%, 06/01/38

    4,900       4,912,789  
   

 

 

 
    11,606,490  
Kentucky — 0.9%            

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing, First Tier, Series A, 5.75%, 07/01/49

    4,000       4,289,640  
   

 

 

 
Louisiana — 2.0%            

Juban Crossing Economic Development District, Refunding RB, General Infrastructure Project, Series C, 7.00%, 09/15/44(b)

    2,460       2,526,174  

Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.75%, 05/01/41

    1,745       1,822,932  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.25%, 05/15/35

    5,570       5,894,731  
   

 

 

 
    10,243,837  
Maine — 0.6%            

Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 07/01/41

    2,955       3,134,398  
   

 

 

 
Maryland — 2.5%            

County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 07/01/43(b)

    2,835       3,002,860  

Maryland EDC, RB:

   

Purple Line Light Rail Project, AMT, 5.00%, 03/31/51

    2,185       2,291,060  
Security   Par
(000)
    Value  
Maryland (continued)            

Maryland EDC, RB (continued):

   

Transportation Facilities Project, Series A, 5.75%, 06/01/20(a)

  $ 3,615     $ 3,820,151  

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25

    3,085       3,185,263  
   

 

 

 
    12,299,334  
Massachusetts — 1.0%            

Massachusetts Development Finance Agency, RB, Series A(a):

   

Foxborough Regional Charter School, 7.00%, 07/01/20

    1,025       1,105,965  

North Hill Communities Issue, 6.50%, 11/15/23(b)

    2,020       2,396,932  

Massachusetts Development Finance Agency, Refunding RB, Tufts Medical Center, Series I:

   

6.75%, 01/01/21(a)

    895       979,962  

6.75%, 01/01/36

    595       647,390  
   

 

 

 
    5,130,249  
Michigan — 0.9%            

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39

    2,785       2,948,145  

Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 07/01/44

    415       434,904  

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44

    920       972,541  
   

 

 

 
    4,355,590  
Minnesota — 0.1%            

St. Paul Housing & Redevelopment Authority, Refunding RB, Hmong College Prep Academy Project, Series A:

   

5.75%, 09/01/46

    195       201,304  

6.00%, 09/01/51

    290       302,093  
   

 

 

 
    503,397  
Missouri — 0.9%            

City of St. Louis Missouri IDA, Refunding RB, BallPark Village Development Project, Series A:

   

4.38%, 11/15/35

    685       687,528  

4.75%, 11/15/47

    760       764,530  

Kirkwood Missouri IDA, RB, Aberdeen Heights, Series A, 8.25%, 05/15/20(a)

    2,315       2,520,595  

Lees Summit Missouri IDA, RB, John Knox Obligated Group, 5.25%, 08/15/39

    450       456,457  
   

 

 

 
    4,429,110  
New Hampshire — 0.3%            

New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project(b):

   

Series B, 4.63%, 11/01/42

    1,015       982,824  

Series C, AMT, 4.88%, 11/01/42

    485       473,273  
   

 

 

 
    1,456,097  
New Jersey — 3.7%            

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,065       1,123,170  

5.25%, 11/01/44

    770       809,971  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(b)

    1,150       1,153,542  

New Jersey EDA, RB:

   

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 01/01/43

    2,155       2,305,376  

Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 04/01/31

    2,250       2,496,443  

Provident Group-Kean Properties, Series A, 5.00%, 07/01/32

    165       176,624  
 

 

 

22    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Jersey (continued)            

New Jersey EDA, RB (continued):

   

Provident Group-Kean Properties, Series A, 5.00%, 07/01/37

  $ 260     $ 274,235  

State Housing Project, Series B, 5.00%, 06/15/43

    2,245       2,326,089  

Team Academy Charter School Project, 6.00%, 10/01/43

    1,530       1,644,046  

New Jersey EDA, Refunding RB, Greater Brunswick Charter School, Inc. Project, Series A, 6.00%, 08/01/49(b)

    500       495,785  

New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Barnabas Health Care System, Series A, 5.63%, 07/01/21(a)

    2,650       2,880,630  

New Jersey Transportation Trust Fund Authority, RB, Transportation Program, Series AA, 5.25%, 06/15/41

    1,140       1,193,067  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.25%, 06/01/46

    590       623,636  

Sub-Series B, 5.00%, 06/01/46

    830       840,690  
   

 

 

 
    18,343,304  
New Mexico — 0.6%            

New Mexico Hospital Equipment Loan Council, Refunding RB, Gerald Champion Regional Medical Center Project, 5.50%, 07/01/42

    2,970       3,143,092  
   

 

 

 
New York — 6.7%            

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A:

   

6.25%, 06/01/41(b)

    5,300       5,453,594  

5.00%, 06/01/42

    3,155       3,036,530  

5.00%, 06/01/45

    1,185       1,131,319  

Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through:

   

Series A-2B, 5.00%, 06/01/51

    1,900       1,940,793  

Series B, 5.00%, 06/01/45

    2,655       2,765,342  

County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 08/01/46

    970       911,800  

County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44

    1,286       1,339,794  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45

    2,890       2,779,746  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(a)

    1,490       1,492,593  

6.50%, 11/15/18(a)

    125       125,218  

6.50%, 11/15/28

    385       385,662  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

    1,270       1,319,581  

3 World Trade Center Project, Class 1,
5.00%, 11/15/44(b)

    4,705       4,818,061  

3 World Trade Center Project, Class 2,
5.15%, 11/15/34(b)

    455       469,019  

3 World Trade Center Project, Class 2,
5.38%, 11/15/40(b)

    1,080       1,112,184  

3 World Trade Center Project, Class 3, 7.25%, 11/15/44(b)

    1,565       1,800,063  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/36

    1,340       1,436,453  

State of New York Dormitory Authority, Refunding RB, Orange Regional Medical Center, 5.00%, 12/01/33(b)

    955       1,031,677  
   

 

 

 
    33,349,429  
North Carolina — 0.8%            

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Series A(a):

   

Deerfield Project, 6.13%, 11/01/18

    1,230       1,230,000  
Security   Par
(000)
    Value  
North Carolina (continued)            

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Series A(a) (continued):

   

Retirement Facilities Whitestone Project, 7.75%, 03/01/21

  $ 1,000     $ 1,121,240  

Retirement Facilities Whitestone Project, 7.75%, 03/01/21

    1,420       1,592,161  
   

 

 

 
    3,943,401  
Ohio — 3.2%            

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

   

Senior Turbo Term, 5.75%, 06/01/34

    6,745       6,494,828  

Senior Turbo Term, 5.88%, 06/01/47

    5,570       5,408,414  

6.00%, 06/01/42

    3,040       2,990,874  

County of Hamilton Ohio, Refunding RB, Improvement-Life Enriching Communities, 5.00%, 01/01/46

    875       889,157  
   

 

 

 
    15,783,273  
Oklahoma — 1.4%            

County of Tulsa Oklahoma Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/37

    750       810,638  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B:

   

5.00%, 08/15/38

    2,990       3,136,061  

5.25%, 08/15/43

    2,690       2,856,861  
   

 

 

 
    6,803,560  
Oregon — 0.8%            

County of Multnomah Oregon Hospital Facilities Authority, Refunding RB, Mirabella at South Waterfront, 5.50%, 10/01/49

    1,765       1,849,155  

Polk County Hospital Facility Authority, RB, Dallas Retirement Village Project, Series A:

   

5.13%, 07/01/35

    620       631,334  

5.38%, 07/01/45

    1,435       1,473,257  
   

 

 

 
    3,953,746  
Pennsylvania — 4.2%            

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 05/01/42

    2,140       2,181,195  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/36

    2,000       2,111,720  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

   

5.00%, 06/01/33

    115       126,283  

5.00%, 06/01/34

    150       164,211  

County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran:

   

6.38%, 01/01/19(a)

    5,550       5,588,794  

6.38%, 01/01/39

    615       619,452  

County of Lehigh Pennsylvania General Purpose Authority, Refunding RB, Bible Fellowship Church Homes, 5.13%, 07/01/32

    1,800       1,804,932  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A:

   

4.00%, 09/01/49

    620       590,401  

5.00%, 09/01/43

    1,365       1,474,978  

County of Montgomery Pennsylvania IDA, Refunding RB, Whitemarsh Continuing Care Retirement Community Project, 5.38%, 01/01/50

    1,135       1,115,535  

County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bonds, 7.00%, 07/01/32

    1,945       2,173,343  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

    2,710       2,800,704  
   

 

 

 
    20,751,548  
 

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Puerto Rico — 2.5%            

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 05/15/39

  $ 635     $ 644,017  

5.63%, 05/15/43

    2,145       2,174,193  

Commonwealth of Puerto Rico, GO, Refunding, Series A(d)(e):

   

Public Improvement, 5.50%, 07/01/39

    665       389,025  

8.00%, 07/01/35

    1,765       1,041,350  

Commonwealth of Puerto Rico, GO, , 6.00%, 07/01/38(d)(e)

    750       450,000  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 6.00%, 07/01/44

    1,445       1,372,750  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 07/01/38

    2,215       2,104,250  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 5.75%, 07/01/37

    3,355       3,145,312  

Puerto Rico Electric Power Authority, RB(d)(e):

   

Series A, 5.00%, 07/01/29

    660       419,100  

Series A, 7.00%, 07/01/33

    210       135,450  

Series A, 5.00%, 07/01/42

    640       406,400  

Series TT, 5.00%, 07/01/25

    100       63,500  

Series XX, 5.25%, 07/01/40

    445       283,688  

Puerto Rico Electric Power Authority, Refunding RB, Series ZZ, 5.25%, 07/01/21

    50       31,875  
   

 

 

 
    12,660,910  
Rhode Island — 2.2%            

Central Falls Detention Facility Corp., Refunding RB, 7.25%, 07/15/35(d)(e)

    4,190       754,200  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    1,000       1,052,000  

Series A, 5.00%, 06/01/40

    980       1,019,494  

Series B, 4.50%, 06/01/45

    5,055       4,985,393  

Series B, 5.00%, 06/01/50

    3,330       3,414,282  
   

 

 

 
    11,225,369  
South Carolina — 0.7%            

State of South Carolina Public Service Authority, RB, Series E, 5.50%, 12/01/53

    3,275       3,454,044  
   

 

 

 
Tennessee — 0.4%            

County of Memphis-Shelby Tennessee Industrial Development Board, Refunding, Tax Allocation Bonds, Senior Tax Increment, Graceland Project, Series A:

   

5.50%, 07/01/37

    925       972,397  

5.63%, 01/01/46

    1,085       1,129,810  
   

 

 

 
    2,102,207  
Texas — 10.2%            

Central Texas Regional Mobility Authority, Refunding RB:

   

CAB, 0.00%, 01/01/28(c)

    1,000       711,440  

CAB, 0.00%, 01/01/29(c)

    2,000       1,357,380  

CAB, 0.00%, 01/01/30(c)

    1,170       757,692  

CAB, 0.00%, 01/01/33(c)

    3,690       2,045,256  

CAB, 0.00%, 01/01/34(c)

    4,000       2,101,480  

Senior Lien, 6.25%, 01/01/21(a)

    2,210       2,392,192  

City of Houston Texas Airport System, Refunding ARB, AMT:

   

Special Facilities, Continental Airlines, Inc., Series A, 6.63%, 07/15/38

    2,890       3,107,646  

United Airlines, Inc. Terminal E Project, 5.00%, 07/01/29

    910       967,039  

Clifton Higher Education Finance Corp., ERB, Idea Public Schools(a):

   

5.50%, 08/15/21

    955       1,034,017  

5.75%, 08/15/21

    720       784,397  

County of Bexar Texas Health Facilities Development Corp., RB, Army Retirement Residence Project,
6.20%, 07/01/20(a)

    5,040       5,359,738  
Security   Par
(000)
    Value  
Texas (continued)            

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 01/01/23(a)

  $ 475     $ 559,009  

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

    2,090       2,185,429  

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

    4,200       4,066,440  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project, 5.00%, 10/01/49

    865       899,038  

County of Travis Texas Health Facilities Development Corp., Refunding RB, 7.13%, 01/01/21(a)

    3,080       3,390,433  

Mesquite Health Facility Development Corp., Refunding RB, 5.13%, 02/15/42

    810       818,335  

Mission Economic Development Corp., Refunding RB, Senior Lien, Natural Gasoline Project, AMT, 4.63%, 10/01/31(b)(h)

    890       886,965  

Mission Texas Economic Development Corp., RB, Senior Lien, Natural Gasoline Project, Series B, AMT,
5.75%, 10/01/31(b)

    1,325       1,365,081  

New Hope Cultural Education Facilities Corp., RB, Stephenville LLC Tarleton State University Project:

   

5.88%, 04/01/36

    1,210       1,311,616  

6.00%, 04/01/45

    1,845       1,996,751  

New Hope Cultural Education Facilities Finance Corp., RB, Legacy Midtown Park Project, Series A, 5.50%, 07/01/54

    260       249,790  

Newark Higher Education Finance Corp., RB, Series A(b):

   

5.50%, 08/15/35

    290       300,768  

5.75%, 08/15/45

    580       603,032  

North Texas Education Finance Corp., ERB, Uplift Education, Series A, 5.25%, 12/01/47

    1,600       1,660,640  

Red River Health Facilities Development Corp., First MRB, Project:

   

Eden Home, Inc., 7.25%, 12/15/42(d)(e)

    2,895       1,802,137  

Wichita Falls Retirement Foundation, 5.13%, 01/01/41

    900       913,446  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:

   

LBJ Infrastructure Group LLC, 7.00%, 06/30/40

    3,775       4,018,978  

NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39

    3,000       3,136,050  
   

 

 

 
    50,782,215  
Utah — 0.6%            

State of Utah Charter School Finance Authority, Refunding RB, 6.75%, 10/15/43

    2,950       2,952,360  
   

 

 

 
Vermont — 0.2%            

Vermont EDA, Refunding, MRB, Wake Robin Corp. Project, 5.40%, 05/01/33

    770       803,072  
   

 

 

 
Virginia — 2.3%            

Lower Magnolia Green Community Development Authority, Special Assessment Bonds(b):

   

5.00%, 03/01/35

    495       492,233  

5.00%, 03/01/45

    505       492,688  

Mosaic District Community Development Authority, Special Assessment, Series A:

   

6.63%, 03/01/26

    1,485       1,581,718  

6.88%, 03/01/36

    1,300       1,388,569  

Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 06/01/47

    2,355       2,307,170  

Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 07/01/45(b)

    535       544,058  
 

 

 

24    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Virginia (continued)  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 01/01/37

  $ 4,440     $ 4,831,075  
   

 

 

 
      11,637,511  
Washington — 0.8%  

County of King Washington Public Hospital District No. 4, GO, Refunding, Snoqualmie Valley Hospital, 7.00%, 12/01/40

    1,455       1,480,986  

Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A, 5.50%, 09/01/42

    1,495       1,509,247  

Washington State Housing Finance Commission, Refunding RB(b):

   

5.75%, 01/01/35

    315       310,414  

6.00%, 01/01/45

    850       842,163  
   

 

 

 
      4,142,810  
Wisconsin — 1.4%  

Public Finance Authority, RB:

   

Alabama Proton Therapy Center, Series A, 6.25%, 10/01/31(b)

    605       575,658  

Alabama Proton Therapy Center, Series A, 7.00%, 10/01/47(b)

    605       576,934  

Delray Beach Radiation Therapy, 6.85%, 11/01/46(b)

    900       904,941  

Delray Beach Radiation Therapy, 7.00%, 11/01/46(b)

    570       578,345  

Series A, 5.00%, 12/01/45

    1,505       1,526,431  

Series A, 5.15%, 12/01/50

    1,170       1,190,077  

Wisconsin Health & Educational Facilities Authority, Refunding RB:

   

Benevolent Corporation Cedar Community, 5.00%, 06/01/41

    225       227,898  

St. Johns Communities, Inc., Series A,
7.25%, 09/15/19(a)

    425       443,819  

St. Johns Communities, Inc., Series A,
7.63%, 09/15/19(a)

    855       895,604  
   

 

 

 
      6,919,707  
   

 

 

 

Total Municipal Bonds — 88.6%
(Cost — $425,243,040)

 

    441,124,290  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(i)

 

Colorado — 2.4%

   

Colorado Health Facilities Authority, Refunding RB, Sisters of Leavenworth Health System, Series A, 5.00%, 01/01/40

    11,468       11,766,090  
   

 

 

 
Illinois — 2.9%            

Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 08/15/41

    7,180       7,762,119  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 4.00%, 02/15/41

    1,499       1,440,865  

State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 01/01/40

    5,056       5,491,295  
   

 

 

 
      14,694,279  
Massachusetts — 0.5%            

Commonwealth of Massachusetts Transportation Fund Revenue, RB, Rail Enhancement Program, Series A, 4.00%, 06/01/45

    2,268       2,272,966  
   

 

 

 
New York — 14.8%            

City of New York Housing Development Corp., RB, M/F:

   

Housing, Series D-1, Class B, 4.25%, 11/01/45

    8,996       9,034,050  

Series C-1A, 4.15%, 11/01/39

    1,893       1,913,680  

Series C-1A, 4.20%, 11/01/44

    3,470       3,507,709  

Series C-1A, 4.30%, 11/01/47

    2,840       2,870,479  
Security   Par
(000)
    Value  
New York (continued)            

City of New York Water & Sewer System, Refunding RB, 2nd General Resolution:

   

Series HH, 5.00%, 06/15/31(j)

  $ 8,610     $ 9,141,093  

Fiscal 2013, Series CC, 5.00%, 06/15/47

    14,181       15,523,310  

Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(j):

   

5.75%, 02/15/21(a)

    2,798       3,009,925  

5.75%, 02/15/47

    1,721       1,851,615  

New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

    18,104       19,515,114  

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(j)

    6,600       7,183,998  
   

 

 

 
    73,550,973  
Pennsylvania — 0.6%            

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    2,505       2,804,172  
   

 

 

 
Rhode Island — 0.3%            

Narragansett Bay Commission, Refunding RB, Wastewater System, Series A, 4.00%, 09/01/43

    1,710       1,712,331  
   

 

 

 
Texas — 0.4%            

Lower Colorado River Authority, Refunding RB, LCRA Transmission Services Corporation Project, 4.00%, 05/15/43

    2,271       2,249,573  
   

 

 

 
Washington — 1.7%            

City of Bellingham Washington Water & Sewer Revenue, RB, Water & Sewer, 5.00%, 08/01/40

    7,966       8,455,086  
   

 

 

 
Wisconsin — 0.2%            

Wisconsin Health & Educational Facilities Authority, Refunding RB, The Medical College of Wisconsin, Inc., 4.00%, 12/01/46

    1,142       1,095,697  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.8%
(Cost — $115,524,078)

 

    118,601,167  
   

 

 

 

Total Long-Term Investments — 112.4%
(Cost — $540,767,118)

 

    559,725,457  
   

 

 

 
     Shares         
Short-Term Securities — 0.7%            

BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.45%(k)(l)

    3,111,236       3,111,547  
   

 

 

 

Total Short-Term Securities — 0.7%
(Cost — $3,111,547)

 

    3,111,547  
   

 

 

 

Total Investments — 113.1%
(Cost — $543,878,665)

 

    562,837,004  

Other Assets Less Liabilities — 1.4%

 

    6,996,828  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.5)%

 

    (72,026,607
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 497,807,225  
   

 

 

 

 

(a) 

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

(b) 

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

(c) 

Zero-coupon bond.

(d) 

Issuer filed for bankruptcy and/or is in default.

(e) 

Non-income producing security.

 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

(f) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(g) 

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(h) 

When-issued security.

(i) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(j) 

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between February 15, 2019 to November 15, 2019 is $11,849,809. See Note 4 of the Notes to Financial Statements for details.

(k) 

Annualized 7-day yield as of period end.

(l) 

During the six months ended October 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/18
     Net
Activity
     Shares
Held at
10/31/18
     Value at
10/31/18
     Income      Net
Realized
Gain (Loss) 
(a)
    

Change in
Unrealized
Appreciation

(Depreciation)

 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     2,226,571        884,665        3,111,236      $ 3,111,547      $ 21,981      $ 267      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts:

                 

10-Year U.S. Treasury Note

     13          12/19/18        $ 1,540        $ 12,014  

Long U.S. Treasury Bond

     58          12/19/18          8,011          178,306  

5-Year U.S. Treasury Note

     23          12/31/18          2,585          11,353  
                 

 

 

 
          $ 201,673  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

 

                 

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 201,673      $      $ 201,673  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative appreciation (depreciation) on futures contracts if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

 

For the six months ended October 31, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 242,334      $      $ 242,334  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 162,091      $      $ 162,091  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 16,385,605  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

26    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 559,725,457        $        $ 559,725,457  

Short-Term Securities

     3,111,547                            3,111,547  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,111,547        $ 559,725,457        $        $ 562,837,004  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 201,673        $        $             —        $ 201,673  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 
  (b) 

Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $71,659,281 are categorized as Level 2 within the disclosure hierarchy.

During the six months ended October 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Municipal Bonds — 124.8%  

Alabama — 0.3%

 

Homewood Educational Building Authority, Refunding RB, Educational Facilities, Samford University, Series A, 5.00%, 12/01/47

  $ 1,010     $ 1,077,418  
   

 

 

 
Alaska — 0.7%  

Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41

    990       1,057,964  

Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC)(a):

   

6.00%, 09/01/19

    765       790,184  

6.00%, 09/01/19

    435       449,320  
   

 

 

 
      2,297,468  
Arizona — 1.6%  

County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group, Series A, 4.00%, 01/01/41

    2,240       2,207,498  

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

   

5.00%, 10/01/27

    2,700       2,768,472  

5.00%, 10/01/29

    400       409,924  
   

 

 

 
      5,385,894  
California — 13.8%  

Anaheim California Public Financing Authority, RB, Senior, Public Improvements Project, Series A (AGM), 6.00%, 09/01/24

    5,000       5,693,300  

California Health Facilities Financing Authority, RB:

   

St. Joseph Health System, Series A, 5.75%, 07/01/39

    550       563,849  

Sutter Health, Series A, 5.00%, 11/15/41

    945       1,029,029  

Sutter Health, Series B, 5.88%, 08/15/20(a)

    1,200       1,284,216  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/37

    1,090       1,183,685  

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 04/01/42

    1,480       1,566,447  

California Statewide Communities Development Authority, Refunding RB, John Muir Health, Series A, 4.00%, 12/01/53

    975       948,070  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT:

   

Series A, 5.00%, 03/01/36

    410       450,668  

Series A, 5.00%, 03/01/37

    455       499,103  

Series A-1, 5.75%, 03/01/34

    850       909,339  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 03/01/21(a)

    2,175       2,376,231  

County of San Mateo California Community College District, GO, CAB, Election of 2001, Series C (NPFGC), 0.00%, 09/01/30(b)

    12,740       8,589,563  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 3.50%, 06/01/36

    1,700       1,665,864  

Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 6.25%, 08/01/43(c)

    2,500       1,981,725  

Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2008, Series B, 0.00%, 08/01/36(b)

    3,750       1,818,487  

Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C, 0.00%, 08/01/38(b)

    5,000       2,196,150  

San Diego California Community College District, GO, CAB, Election of 2006(b):

   

0.00%, 08/01/31

    2,145       1,207,935  

0.00%, 08/01/32

    2,680       1,416,675  
Security   Par
(000)
    Value  
California (continued)  

San Diego California Unified School District, GO, CAB, Election of 2008(b):

   

Series C, 0.00%, 07/01/38

  $ 1,600     $ 716,160  

Series G, 0.00%, 07/01/34

    650       315,153  

Series G, 0.00%, 07/01/35

    690       314,744  

Series G, 0.00%, 07/01/36

    1,035       444,191  

Series G, 0.00%, 07/01/37

    690       278,705  

San Diego California Unified School District, GO, Refunding, Series R-1(b):

   

0.00%, 07/01/30

    5,000       3,309,200  

0.00%, 07/01/31

    1,280       803,584  

San Marcos Unified School District, GO, Election of 2010, Series A(a):

   

5.00%, 08/01/21

    700       757,603  

5.00%, 08/01/21

    600       649,374  

Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B, 0.00%, 08/01/36(b)

    5,500       2,584,670  
   

 

 

 
      45,553,720  
Colorado — 1.1%  

City & County of Denver Colorado, COP, Colorado Convention Center Expansion Project, Series A, 4.00%, 06/01/48

    1,375       1,363,175  

Regional Transportation District, COP, Refunding, Series A, 5.38%, 06/01/31

    2,000       2,089,160  
   

 

 

 
      3,452,335  
Connecticut — 1.0%  

Connecticut HFA, Refunding RB:

   

M/F Housing, Sub-Series E-1 (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 05/15/36(d)

    770       765,195  

S/F Housing, Sub-Series A-1, 3.85%, 11/15/43

    445       429,033  

S/F Housing, Sub-Series B-1, 4.00%, 05/15/45

    1,445       1,408,037  

State of Connecticut, GO, Series C, 5.00%, 06/15/32

    615       671,900  
   

 

 

 
      3,274,165  
District of Columbia — 1.9%  

District of Columbia Ballpark Revenue, RB, Series B-1 (NPFGC), 5.00%, 02/01/31

    5,360       5,369,112  

District of Columbia HFA, RB, M/F Housing, Series B-2 (FHA), 4.10%, 09/01/39

    1,030       1,010,131  
   

 

 

 
      6,379,243  
Florida — 10.1%  

County of Brevard Florida Health Facilities Authority, Refunding RB, Health First, Inc. Project, 5.00%, 04/01/39

    1,600       1,693,904  

County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt Obligated Group:

   

6.00%, 11/15/19(a)

    5       5,204  

6.00%, 11/15/37

    1,445       1,501,991  

County of Lee Florida, Refunding ARB, Series A, AMT:

   

5.63%, 10/01/26

    960       1,030,550  

5.38%, 10/01/32

    3,160       3,363,378  

County of Miami-Dade Florida, RB, Seaport:

   

Department, Series A, 6.00%, 10/01/38

    2,025       2,274,986  

Department, Series B, AMT, 6.25%, 10/01/38

    415       467,896  

Department, Series B, AMT, 6.00%, 10/01/42

    660       738,296  

Series B, AMT, 6.00%, 10/01/30

    640       721,178  

County of Miami-Dade Florida, Refunding RB, 4.00%, 10/01/40

    885       885,566  

County of Miami-Dade Florida Aviation, Refunding ARB, AMT, 5.00%, 10/01/34

    190       205,310  

County of Miami-Dade Florida Educational Facilities Authority, RB, University of Miami, Series A, 5.00%, 04/01/40

    2,995       3,231,365  
 

 

 

28    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

County of Orange Florida Health Facilities Authority, Refunding RB, Presbyterian Retirement Communities Project:

   

5.00%, 08/01/41

  $ 560     $ 593,891  

5.00%, 08/01/47

    1,620       1,711,433  

County of Orange HFA, RB, S/F Housing, Multi-County Program, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 3.75%, 09/01/47

    560       517,194  

County of Palm Beach Florida Solid Waste Authority, Refunding RB, Series B:

   

5.00%, 10/01/21(a)

    30       32,287  

5.00%, 10/01/31

    1,970       2,110,973  

County of Putnam Florida Development Authority, Refunding RB, Seminole Project, Series A, 5.00%, 03/15/42

    520       563,316  

County of Sarasota Florida Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A, 5.63%, 07/01/19(a)

    275       281,553  

Florida Ports Financing Commission, Refunding RB, State Transportation Trust Fund, Series B, AMT:

   

5.13%, 06/01/27

    2,000       2,132,440  

5.38%, 10/01/29

    1,050       1,133,380  

Greater Orlando Aviation Authority, RB, Priority Subordinated, Series A, AMT:

   

5.00%, 10/01/47

    3,970       4,255,840  

5.00%, 10/01/52

    1,490       1,591,529  

State of Florida, GO, Department of Transportation, Right-of-Way Acquisition and Bridge Construction Bonds, 4.00%, 07/01/39

    2,065       2,099,733  
   

 

 

 
      33,143,193  
Georgia — 3.5%  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54

    500       558,050  

County of LaGrange-Troup Hospital Authority, Refunding RB, Revenue Anticipation Certificates, 4.00%, 04/01/47

    1,250       1,182,900  

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

    7,475       9,197,838  

Private Colleges & Universities Authority, RB, Savannah College of Art & Design:

   

5.00%, 04/01/33

    140       149,772  

5.00%, 04/01/44

    380       400,212  
   

 

 

 
      11,488,772  
Illinois — 16.0%  

City of Chicago Illinois O’Hare International Airport, GARB:

   

3rd Lien, Series A, 5.75%, 01/01/21(a)

    4,290       4,612,780  

3rd Lien, Series A, 5.75%, 01/01/39

    820       868,995  

Senior Lien, Series D, 5.25%, 01/01/42

    2,900       3,181,967  

City of Chicago Illinois Transit Authority, RB:

   

5.25%, 12/01/49

    900       978,372  

Sales Tax Receipts, 5.25%, 12/01/36

    595       625,494  

County of Cook Illinois Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37

    45       46,454  

Illinois Finance Authority, RB, Carle Foundation, Series A:

   

5.75%, 08/15/34

    650       698,126  

6.00%, 08/15/41

    1,000       1,082,070  

Illinois Finance Authority, Refunding RB, Silver Cross Hospital & Medical Centers, Series C:

   

4.13%, 08/15/37

    740       711,377  

5.00%, 08/15/44

    350       365,943  

Illinois Housing Development Authority, RB, S/F Housing, 4.13%, 10/01/38

    1,365       1,371,839  
Security   Par
(000)
    Value  
Illinois (continued)  

Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.50%, 06/15/30

  $ 10,490     $ 10,514,861  

Illinois State Toll Highway Authority, RB, Series B, 5.00%, 01/01/37

    1,785       1,926,283  

Kane McHenry Cook & De Kalb Counties Unit School District No. 300, GO, Refunding, 5.25%, 01/01/33

    9,145       10,019,445  

Metropolitan Pier & Exposition Authority, RB, CAB, McCormick Place Expansion Project, Series A (NPFGC)(b):

   

0.00%, 12/15/26

    5,000       3,536,750  

0.00%, 12/15/33

    9,950       4,750,627  

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 06/15/44(b)

    3,450       983,284  

Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21(a)

    675       737,215  

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

    2,460       2,581,819  

State of Illinois, GO:

   

5.25%, 02/01/33

    830       854,834  

5.50%, 07/01/33

    820       864,674  

5.25%, 02/01/34

    830       853,281  

5.50%, 07/01/38

    445       465,216  
   

 

 

 
      52,631,706  
Indiana — 1.0%  

Indiana Finance Authority, RB, Series A:

   

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

    1,100       1,175,834  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44

    515       539,143  

Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC):

   

5.25%, 01/01/19(a)

    115       115,643  

5.25%, 01/01/29

    485       487,585  

State of Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 07/01/40

    890       934,429  
   

 

 

 
      3,252,634  
Iowa — 2.6%  

Iowa Finance Authority, RB, Iowa Health Care Facilities, Series A (AGC), 5.63%, 08/15/19(a)

    5,725       5,885,415  

Iowa Student Loan Liquidity Corp., RB, Senior Series A-2, AMT:

   

5.60%, 12/01/26

    1,330       1,368,809  

5.70%, 12/01/27

    600       617,184  

5.80%, 12/01/29

    405       415,886  

5.85%, 12/01/30

    425       436,314  
   

 

 

 
      8,723,608  
Louisiana — 1.3%  

City of New Orleans Louisiana Aviation Board, ARB, Series B, AMT, 5.00%, 01/01/40

    2,795       2,960,296  

Louisiana Public Facilities Authority, Refunding RB, Christus Health, Series B (AGC), 6.50%, 07/01/30

    1,250       1,259,450  
   

 

 

 
      4,219,746  
Maine — 1.0%  

Maine State Housing Authority, RB:

   

M/F Housing, Series E, 4.15%, 11/15/38(d)

    1,405       1,410,241  

M/F Housing, Series E, 4.25%, 11/15/43(d)

    1,260       1,262,797  

Series D-1, 3.65%, 11/15/42

    645       594,387  
   

 

 

 
      3,267,425  
Maryland — 0.3%  

Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38(d)

    1,150       1,142,226  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts — 2.7%  

Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A, 5.00%, 01/01/47

  $ 2,090     $ 2,189,714  

Massachusetts Development Finance Agency, Refunding RB, Partners Health Care System, 4.00%, 07/01/41

    3,235       3,187,413  

Massachusetts HFA, Refunding RB, Series A, AMT, 4.45%, 12/01/42

    795       806,750  

Massachusetts Housing Finance Agency, RB, M/F Housing, Series A:

   

3.80%, 12/01/43

    255       241,544  

3.85%, 06/01/46

    75       70,384  

Massachusetts Housing Finance Agency, Refunding RB, Series C, AMT, 5.35%, 12/01/42

    375       376,609  

Massachusetts School Building Authority, RB:

   

Dedicated Sales Tax, Senior Series A, 5.00%, 05/15/43

    1,280       1,388,928  

Sub-Series B, 4.00%, 02/15/43

    755       748,009  
   

 

 

 
      9,009,351  
Michigan — 3.1%  

City of Detroit Michigan Water Supply System Revenue, RB, 2nd Lien, Series B (AGM), 6.25%, 07/01/19(a)

    400       411,304  

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 07/01/41

    1,700       1,829,217  

Eastern Michigan University, RB, Series A (AGM), 4.00%, 03/01/44

    615       595,904  

Michigan Finance Authority, Refunding RB:

   

Henry Ford Health System, 3.25%, 11/15/42

    325       266,529  

Trinity Health Credit Group, 5.00%, 12/01/21(a)

    20       21,609  

Trinity Health Credit Group, Series A, 4.00%, 12/01/40

    2,180       2,148,477  

Royal Oak Hospital Finance Authority Michigan, Refunding RB, Beaumont Health Credit Group, Series D, 5.00%, 09/01/39

    1,040       1,108,963  

State of Michigan Building Authority, Refunding RB, Facilities Program:

   

Series I-A, 5.38%, 10/15/36

    145       156,278  

Series I-A, 5.38%, 10/15/41

    700       752,171  

Series II-A (AGM), 5.25%, 10/15/36

    900       970,551  

State of Michigan Housing Development Authority, RB, S/F Housing, Series C, 4.13%, 12/01/38(d)

    1,465       1,466,612  

Western Michigan University, Refunding RB, General, University and College Improvements (AGM), 5.00%, 11/15/39

    380       416,016  
   

 

 

 
      10,143,631  
Minnesota — 0.8%  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

   

6.50%, 11/15/18(a)

    385       385,647  

6.50%, 11/15/38

    2,115       2,118,553  
   

 

 

 
      2,504,200  
Mississippi — 0.1%  

Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Faciliities Refinancing, Series A, 4.00%, 08/01/43

    400       399,980  
   

 

 

 
Missouri — 0.3%  

State of Missouri Health & Educational Facilities Authority, RB, Mercy Health, 4.00%, 11/15/42

    1,015       1,013,427  
   

 

 

 
Nebraska — 1.9%  

Central Plains Nebraska Energy Project, RB, Gas Project No. 3:

   

5.00%, 09/01/32

    5,010       5,382,994  

5.25%, 09/01/37

    750       812,580  
   

 

 

 
      6,195,574  
Security   Par
(000)
    Value  
Nevada — 1.6%  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 04/01/19(a)

  $ 850     $ 864,314  

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A:

   

5.25%, 07/01/42

    500       515,890  

(AGM), 5.25%, 07/01/39

    3,800       3,922,094  
   

 

 

 
      5,302,298  
New Jersey — 8.7%  

New Jersey EDA, RB:

   

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 01/01/43

    895       957,453  

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.13%, 01/01/34

    685       728,813  

School Facilities Construction (AGC), 6.00%, 12/15/18(a)

    1,975       1,984,756  

School Facilities Construction (AGC), 6.00%, 12/15/18(a)

    25       25,125  

Series WW, 5.25%, 06/15/33

    155       164,773  

Series WW, 5.00%, 06/15/34

    205       214,504  

Series WW, 5.00%, 06/15/36

    925       962,453  

Series WW, 5.25%, 06/15/40

    265       279,045  

New Jersey EDA, Refunding RB:

   

Series B, 5.50%, 06/15/30

    5,360       5,908,542  

Sub-Series A, 4.00%, 07/01/32

    1,270       1,227,049  

New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT:

   

5.50%, 12/01/26

    300       314,505  

5.75%, 12/01/27

    1,950       2,055,436  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT, 4.35%, 11/01/33

    970       986,015  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.25%, 06/15/33

    1,490       1,580,681  

Transportation Program, Series AA, 5.00%, 06/15/38

    1,885       1,949,203  

Transportation System, Series A, 5.50%, 06/15/41

    3,150       3,287,781  

Transportation System, Series AA, 5.50%, 06/15/39

    1,150       1,220,058  

Transportation System, Series B, 5.50%, 06/15/31

    1,000       1,052,160  

Transportation System, Series B, 5.00%, 06/15/42

    520       534,222  

Transportation System, Series D, 5.00%, 06/15/32

    735       774,514  

Tobacco Settlement Financing Corp., Refunding RB, Series A:

   

5.00%, 06/01/46

    1,845       1,904,483  

5.25%, 06/01/46

    405       428,089  
   

 

 

 
      28,539,660  
New York — 6.9%  

City of New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-4, 5.50%, 01/15/33

    1,600       1,611,968  

City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 11/01/38(d)

    2,175       2,146,029  

City of New York New York Municipal Water Finance Authority, Refunding RB, Second General Resolution, Fiscal 2012, Series BB, 5.25%, 06/15/44

    1,425       1,540,069  

City of New York New York Transitional Finance Authority, RB, Series S-3, 4.00%, 07/15/46

    1,130       1,111,333  

City of New York Transitional Finance Authority, RB, Fiscal 2009, Series S-4, 5.50%, 01/15/34

    2,750       2,770,570  

City of New York Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/32

    1,480       1,605,830  

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:

   

5.75%, 02/15/21(a)

    430       465,041  

5.75%, 02/15/47

    270       288,932  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(a)

    2,985       2,990,194  

6.50%, 11/15/18(a)

    245       245,426  

6.50%, 11/15/28

    770       771,324  
 

 

 

30    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 01/01/50

  $ 2,715     $ 2,857,212  

Port Authority of New York & New Jersey, Refunding ARB, Series 207, AMT, 4.00%, 09/15/43

    460       450,740  

State of New York Dormitory Authority, RB, Series B, 5.75%, 03/15/19(a)

    1,200       1,217,376  

State of New York HFA, RB, M/F Housing, Series B:

   

Affordable Housing, AMT, 5.30%, 11/01/37

    2,500       2,502,125  

Green Bond (SONYMA), 3.88%, 11/01/48

    170       166,015  
   

 

 

 
      22,740,184  
Ohio — 1.8%  

County of Butler Ohio, Refunding RB, UC Health, 4.00%, 11/15/37

    460       443,918  

County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/21(a)

    530       595,079  

Ohio HFA, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 09/01/48

    325       316,687  

State of Ohio Turnpike Commission, RB, CAB, Junior Lien, Infrastructure Projects, Series A-2, 0.00%, 02/15/37(b)

    10,000       4,618,100  
   

 

 

 
      5,973,784  
Oklahoma — 0.2%  

Oklahoma Turnpike Authority, RB, Series A, 4.00%, 01/01/48

    555       546,514  
   

 

 

 
Oregon — 1.3%  

County of Clackamas Oregon Community College District, GO, Convertible Deferred Interest Bonds, Series A, 5.00%, 06/15/40(c)

    440       445,262  

County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38(b)

    995       432,855  

State of Oregon, GO, Refunding, Veteran’s Welfare Series 100th, 3.65%, 06/01/42

    550       524,821  

State of Oregon Housing & Community Services Department, RB:

   

S/F Housing, Mortgage Program, Series C, 3.95%, 07/01/43

    425       416,441  

Series D, 3.45%, 01/01/38

    2,760       2,532,162  
   

 

 

 
      4,351,541  
Pennsylvania — 9.3%  

City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB, Series B, AMT, 5.00%, 07/01/47

    1,610       1,718,321  

Commonwealth Financing Authority, RB:

   

Series B, 5.00%, 06/01/42

    1,600       1,693,888  

Tobacco Master Settlement Payment (AGM), 4.00%, 06/01/39

    1,050       1,029,745  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49

    950       904,647  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 06/30/42

    1,035       1,081,120  

PA Bridges Finco LP, 5.00%, 12/31/38

    1,305       1,369,232  

PA Bridges Finco LP, AMT, 5.00%, 12/31/34

    7,290       7,746,791  

Pennsylvania Economic Development Financing Authority, Refunding RB, Series A, 4.00%, 11/15/42

    570       553,687  

Pennsylvania Higher Educational Facilities Authority, Refunding RB, Thomas Jefferson University, Series A, 5.25%, 09/01/50

    2,330       2,538,908  

Pennsylvania Housing Finance Agency, RB, S/F Housing, Series 127-B, 3.88%, 10/01/38

    885       862,760  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

Pennsylvania Turnpike Commission, RB:

   

Series A, 5.00%, 12/01/38

  $ 620     $ 667,709  

Series A-1, 5.00%, 12/01/41

    2,385       2,575,156  

Series B, 5.00%, 12/01/40

    935       1,008,874  

Series C, 5.50%, 12/01/23(a)

    555       637,678  

Sub-Series A-1, 5.00%, 12/01/41

    2,430       2,563,140  

Subordinate, Special Motor License Fund, 6.00%, 12/01/20(a)

    575       619,551  

Pennsylvania Turnpike Commission, Refunding RB:

   

Motor Licenced Fund Enhancement, Third Series, 4.00%, 12/01/38

    2,070       2,030,691  

Series A-1, 5.00%, 12/01/40

    765       821,671  

Philadelphia School District, GO, Refunding, Series F, 5.00%, 09/01/38

    305       326,161  
   

 

 

 
      30,749,730  
Rhode Island — 1.5%  

Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 09/15/42

    805       784,408  

Rhode Island Turnpike & Bridge Authority, Refunding RB, Series A, 5.00%, 10/01/40

    465       502,930  

Tobacco Settlement Financing Corp., Refunding RB, Series B:

   

4.50%, 06/01/45

    1,055       1,040,473  

5.00%, 06/01/50

    2,630       2,696,565  
   

 

 

 
      5,024,376  
South Carolina — 5.1%  

South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM), 6.50%, 08/01/21(a)

    115       128,042  

South Carolina Ports Authority, ARB, AMT, 5.00%, 07/01/48

    530       568,590  

South Carolina Transportation Infrastructure Bank, RB, Series A, 5.25%, 10/01/19(a)

    3,000       3,086,130  

State of South Carolina Ports Authority, RB, AMT, 5.25%, 07/01/50

    2,330       2,517,169  

State of South Carolina Public Service Authority, RB:

   

Santee Cooper, Series A, 5.50%, 12/01/54

    6,225       6,595,076  

Series E, 5.50%, 12/01/53

    745       785,729  

State of South Carolina Public Service Authority, Refunding RB:

   

Santee Cooper, Series B, 5.00%, 12/01/38

    2,080       2,163,075  

Series A, 5.50%, 01/01/19(a)

    80       80,473  

Series A, 5.50%, 01/01/19(a)

    920       925,437  
   

 

 

 
      16,849,721  
South Dakota — 1.2%  

South Dakota Health & Educational Facilities Authority, Refunding RB, Avera Health Issue:

   

4.00%, 07/01/37

    1,225       1,204,371  

4.00%, 07/01/42

    3,000       2,901,690  
   

 

 

 
      4,106,061  
Tennessee — 2.1%  

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, Refunding RB, Vanderbilt University, Series B, 5.50%, 10/01/19(a)

    5,000       5,159,450  

Tennessee Housing Development Agency, RB:

   

3.60%, 07/01/42

    550       507,006  

3.65%, 07/01/47

    1,465       1,326,836  
   

 

 

 
      6,993,292  
Texas — 15.7%  

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC)(a):

   

5.38%, 05/15/19

    1,280       1,303,462  

5.38%, 05/15/19

    70       71,302  
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC)(a) (continued):

   

6.00%, 05/15/19

  $ 1,990     $ 2,033,083  

6.00%, 05/15/19

    110       112,411  

City of San Antonio Texas Electric & Gas Revenue, RB, Junior Lien, 5.00%, 02/01/38

    575       618,850  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 09/15/36(b)

    2,130       993,517  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Cook Children’s Medical Center, 5.25%, 12/01/39

    750       819,338  

Dallas Texas Area Rapid Transit, Refunding RB, Series A, 5.00%, 12/01/48

    3,160       3,465,288  

Dallas-Fort Worth International Airport, ARB, Joint Improvement, AMT:

   

Series D, 5.00%, 11/01/38

    1,975       2,060,320  

Series D, 5.00%, 11/01/42

    1,500       1,562,190  

Series H, 5.00%, 11/01/32

    3,000       3,151,410  

Dallas-Fort Worth International Airport, Refunding ARB, Series F, 5.25%, 11/01/33

    975       1,072,305  

Grand Parkway Transportation Corp., RB, Subordinate Tier Toll Revenue Bonds, TELA Supported, Series A, 5.00%, 10/01/48

    1,810       1,991,018  

Leander ISD, GO, Refunding, CAB, Series D (PSF-GTD), 0.00%, 08/15/38(b)

    3,420       1,447,789  

North Texas Tollway Authority, Refunding RB:

   

4.25%, 01/01/49(d)

    1,225       1,202,460  

1st Tier System, Series A, 6.00%, 01/01/19(a)

    2,270       2,284,800  

1st Tier System, Series A, 6.00%, 01/01/28

    525       528,176  

1st Tier System, Series K-2 (AGC), 6.00%, 01/01/19(a)

    4,015       4,041,178  

1st Tier, Series K-1 (AGC), 5.75%, 01/01/19(a)

    3,800       3,823,218  

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing & Expansion Project, CAB(b):

   

0.00%, 09/15/35

    4,990       2,304,182  

0.00%, 09/15/36

    11,525       5,011,416  

0.00%, 09/15/37

    8,245       3,371,545  

San Antonio Water System, Refunding RB, Junior Lien, Series A, 5.00%, 05/15/48

    1,355       1,496,584  

Texas Department of Housing & Community Affairs, RB, S/F Housing Mortgage, Series A (Ginnie Mae), 4.25%, 09/01/43

    390       391,693  

Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements:

   

5.00%, 12/15/31

    1,190       1,264,446  

5.00%, 12/15/32

    705       747,991  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, AMT, Blueridge Transportation Group, 5.00%, 12/31/45

    1,275       1,332,656  

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 08/15/41

    3,080       3,249,061  
   

 

 

 
      51,751,689  
Utah — 0.6%  

City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT:

   

5.00%, 07/01/48

    445       480,725  

5.00%, 07/01/42

    1,240       1,333,731  
   

 

 

 
      1,814,456  
Virginia — 0.1%  

County of Fairfax Virginia IDA, Refunding RB, Health Care-Inova Health(a):

   

5.50%, 05/15/19

    225       229,311  

5.50%, 05/15/19

    125       127,395  
   

 

 

 
      356,706  
Security   Par
(000)
    Value  
Washington — 2.3%  

Port of Seattle Washington, RB, AMT:

   

Intermediate Lien, Series C, 5.00%, 04/01/40

  $ 1,015     $ 1,086,710  

Series A, 5.00%, 05/01/43

    1,955       2,096,112  

State of Washington Convention Center Public Facilities District, RB, 5.00%, 07/01/43

    615       671,592  

Washington Health Care Facilities Authority, RB, Providence Health & Services:

   

4.00%, 10/01/45

    705       686,818  

Series A, 5.00%, 10/01/39

    525       540,078  

Series A, 5.25%, 10/01/39

    625       647,125  

Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.00%, 08/15/41

    1,835       1,794,593  
   

 

 

 
      7,523,028  
West Virginia — 0.8%  

West Virginia Hospital Finance Authority, RB, Improvement West Virginia University Health System Obligated Group, Series A, 4.00%, 06/01/51

    2,945       2,675,768  
   

 

 

 
Wisconsin — 0.5%  

State of Wisconsin Health & Educational Facilities Authority, RB:

   

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

    1,375       1,409,925  

Marshfield Clinic Health System, Inc. Series C, 4.00%, 02/15/42

    315       300,274  
   

 

 

 
      1,710,199  
   

 

 

 

Total Municipal Bonds — 124.8%
(Cost — $393,588,393)

 

    411,564,723  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(e)

 

Arizona — 0.9%

 

City of Phoenix Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 07/01/19(a)

    1,200       1,224,024  

County of Maricopa Industrial Development Authority, RB, Banner Health, Series A, 4.00%, 01/01/41

    1,710       1,685,182  
   

 

 

 
      2,909,206  
California — 2.1%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge Subordinate, 4.00%, 04/01/47(f)

    3,827       3,837,291  

Los Angeles California Unified School District, GO, Election of 2008, Series B-1, 5.25%, 07/01/42(f)

    1,571       1,803,211  

San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(a)

    404       414,288  

University of California, RB, Series O, 5.75%, 05/15/19(a)

    840       858,163  
   

 

 

 
      6,912,953  
Colorado — 3.2%  

City & County of Denver Colorado Airport System Revenue, Refunding ARB, Subordinate System, Series A, AMT, 5.25%, 12/01/48(f)

    2,324       2,581,262  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A:

   

5.50%, 07/01/34(f)

    900       919,598  

5.00%, 02/01/41

    7,000       7,165,235  
   

 

 

 
      10,666,095  
Connecticut — 0.4%  

State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45

    1,381       1,496,333  
   

 

 

 
 

 

 

32    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
District of Columbia — 0.3%  

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

  $ 1,005     $ 1,039,665  
   

 

 

 
Florida — 4.9%  

County of Miami-Dade Florida Transit System, Refunding RB, Sales Tax, 5.00%, 07/01/42

    4,480       4,781,191  

County of Miami-Dade Florida Water & Sewer System, RB, (AGM), 5.00%, 10/01/20(a)

    4,621       4,869,728  

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 08/01/19(a)

    3,544       3,636,702  

South Miami Health Facilities Authority, Refunding RB, Baptist Health South Florida, 5.00%, 08/15/47

    2,640       2,874,617  
   

 

 

 
      16,162,238  
Illinois — 3.3%  

State of Illinois, RB, Build Illinois, Series B, 5.25%, 06/15/19(a)(f)

    4,399       4,486,037  

State of Illinois Toll Highway Authority, RB:

   

Series A, 5.00%, 01/01/38

    2,138       2,284,292  

Series A, 5.00%, 01/01/40

    2,730       2,965,625  

Series B, 5.00%, 01/01/40

    1,050       1,131,332  
   

 

 

 
      10,867,286  
Kansas — 1.6%  

County of Wyandotte Kansas Unified School District, GO, Series A, 5.50%, 09/01/47

    4,723       5,426,798  
   

 

 

 
Louisiana — 0.5%  

County of St. Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, First Lien, Series A, 4.00%, 05/01/41

    1,515       1,521,030  
   

 

 

 
Maryland — 1.3%  

City of Baltimore Maryland, RB, Wastewater Project, Series A, 5.00%, 07/01/46

    1,061       1,162,425  

City of Baltimore Maryland Water Utility Fund, RB, Sub-Water Projects, Series A, 5.00%, 07/01/41

    2,808       3,084,285  
   

 

 

 
      4,246,710  
Massachusetts — 0.5%  

Commonwealth of Massachusetts, GO, Series A, 5.00%, 03/01/46

    1,461       1,586,166  
   

 

 

 
Michigan — 3.3%  

Michigan Finance Authority, RB, Beaumont Health Credit Group, Series A, 5.00%, 11/01/44

    1,970       2,098,298  

Michigan Finance Authority, Refunding RB, Hospital, Trinity Health Credit Group, 5.00%, 12/01/39

    7,530       7,935,039  

State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45

    870       952,541  
   

 

 

 
      10,985,878  
Nevada — 5.3%  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 04/01/19(a)(f)

    3,778       3,840,087  

County of Clark Nevada, GOL, Stadium Improvement, Series A, 5.00%, 06/01/38

    3,061       3,429,547  

County of Clark Nevada Water Reclamation District, GO, Series B(a):

   

5.50%, 07/01/19

    4,499       4,605,094  

5.75%, 07/01/19

    1,829       1,875,674  

Las Vegas Valley Water District Nevada, GO, Refunding, Water Improvement, Series A, 5.00%, 06/01/46

    3,460       3,771,582  
   

 

 

 
      17,521,984  
New Jersey — 2.2%  

County of Hudson New Jersey Improvement Authority, RB, Hudson County Vocational-Technical Schools Project, 5.25%, 05/01/51

    800       879,440  
Security   Par
(000)
    Value  
New Jersey (continued)  

New Jersey State Turnpike Authority, Refunding RB:

   

Series B, 4.00%, 01/01/37

  $ 2,308     $ 2,333,119  

Series G, 4.00%, 01/01/43

    2,146       2,129,708  

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36(f)

    1,840       1,916,081  
   

 

 

 
      7,258,348  
New York — 6.8%  

City of New York Water & Sewer System, Refunding RB, Series DD, 5.00%, 06/15/35

    1,665       1,834,214  

City of New York New York Transitional Finance Authority, RB, Future Tax, Sub-Series A-3, 5.00%, 08/01/40(f)

    3,058       3,382,004  

City of New York Transitional Finance Authority, BARB, Series S-1, 4.00%, 07/15/42(f)

    1,680       1,662,142  

City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 06/15/47

    5,680       6,218,082  

Metropolitan Transportation Authority, RB, Transportation, Sub-Series D-1, 5.25%, 11/15/44

    3,470       3,833,084  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    1,498       1,636,506  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 198th Series, 5.25%, 11/15/56

    2,241       2,480,178  

Triborough Bridge & Tunnel Authority, RB, General, Series A-2(f):

   

5.25%, 11/15/18(a)

    486       487,083  

5.25%, 11/15/34

    814       814,581  
   

 

 

 
      22,347,874  
Ohio — 1.7%  

Northeast Ohio Regional Sewer District, Refunding RB:

   

4.00%, 11/15/49(f)

    2,115       2,081,675  

4.00%, 11/15/43

    2,912       2,918,370  

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

    580       583,329  
   

 

 

 
      5,583,374  
Pennsylvania — 0.7%  

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/42

    900       967,921  

Philadelphia Authority for Industrial Development, RB, Childrens Hospital of Philadelphia Project, Series A, 4.00%, 07/01/44

    1,229       1,229,315  
   

 

 

 
      2,197,236  
Rhode Island — 0.4%  

Rhode Island Housing & Mortgage Finance Corp., Refunding RB, S/F Housing, Home Ownership Opportunity Bonds, Series 69-B (Ginnie Mae, Fannie Mae & Freddie Mac), 3.95%, 10/01/43

    1,450       1,431,824  
   

 

 

 
South Carolina — 0.4%  

South Carolina Public Service Authority, Refunding RB, Series A(a)(f):

   

5.50%, 01/01/19

    102       102,206  

5.50%, 01/01/19

    1,175       1,181,789  
   

 

 

 
      1,283,995  
Texas — 2.5%  

City of Houston Texas Community College, GO, Limited Tax, 4.00%, 02/15/43

    1,470       1,458,632  

County of Harris Texas Toll Road Authority, Refunding RB, Senior Lien, Series A, 5.00%, 08/15/43

    1,229       1,360,606  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Texas Health Resources System, Series A, 5.00%, 02/15/41

    3,440       3,730,259  
 

 

 

SCHEDULES OF INVESTMENTS      33  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing And Expansion Project, 4.00%, 09/15/42

  $ 1,874     $ 1,878,552  
   

 

 

 
      8,428,049  
Virginia — 0.8%  

Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A, 5.50%, 07/01/57

    2,234       2,573,803  
   

 

 

 
Washington — 1.8%  

Metropolitan Washington Airports Authority, Refunding ARB, Series A, AMT, 5.00%, 10/01/30

    2,530       2,713,577  

Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, Series B, 5.00%, 10/01/38

    2,880       3,225,907  
   

 

 

 
      5,939,484  
Wisconsin — 1.1%  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group:

   

Series A, 5.00%, 04/01/42

    1,980       2,085,663  

Series C, 5.25%, 04/01/19(a)(f)

    1,430       1,448,987  
   

 

 

 
      3,534,650  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 46.0%
(Cost — $152,482,326)

 

    151,920,979  
 

 

 

 

Total Long-Term Investments — 170.8%
(Cost — $546,070,719)

 

    563,485,702  
   

 

 

 
Security       
Shares
    Value  
Short-Term Securities — 0.9%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.45%(g)(h)

    2,882,896     $ 2,883,184  
   

 

 

 

Total Short-Term Securities — 0.9%
(Cost — $2,883,184)

 

    2,883,184  
   

 

 

 

Total Investments — 171.7%
(Cost — $548,953,903)

 

    566,368,886  

Liabilities in Excess of Other Assets — (0.7)%

 

    (2,290,871

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (27.9)%

 

    (91,986,593

VRDP Shares at Liquidation Value, Net of Deferred Offering
Costs — (43.1)%

 

    (142,274,618
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 329,816,804  
   

 

 

 

 

(a) 

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

(b) 

Zero-coupon bond.

(c) 

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(d) 

When-issued security.

(e) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(f) 

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between December 1, 2018 to April 1, 2039, is $19,944,102. See Note 4 of the Notes to Financial Statements for details.

(g) 

Annualized 7-day yield as of period end.

 
(h) 

During the six months ended October 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended,were as follows:

 

Affiliate    Shares
Held at
04/30/18
     Net
Activity
     Shares
Held at
10/31/18
     Value at
10/31/18
     Income      Net
Realized

Gain (Loss) (a)
     Change in
Unrealized

Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

            2,882,896        2,882,896      $ 2,883,184      $ 9,066      $ 277      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Includes net capital gain distributions, if applicable.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount
(000)
       Value /
Unrealized
Appreciation
(Depreciation)
 

Short Contracts:

                 

10-Year U.S. Treasury Note

     18          12/19/18        $ 2,132        $ 12,803  

Long U.S. Treasury Bond

     98          12/19/18          13,536          308,178  

5-Year U.S. Treasury Note

     24          12/31/18          2,697          8,876  
                 

 

 

 
                  $ 329,857  
                 

 

 

 

 

 

34    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 329,857      $      $ 329,857  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative appreciation (depreciation) on futures contracts if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

 

For the six months ended October 31, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 464,110      $      $ 464,110  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ 277,230      $      $ 277,230  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 23,577,555  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments(a)

   $        $ 563,485,702        $        $ 563,485,702  

Short-Term Securities

     2,883,184                            2,883,184  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,883,184        $ 563,485,702        $        $ 566,368,886  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 329,857        $        $         —        $ 329,857  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 
  (b) 

Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

 

TOB Trust Certificates

   $        $ (91,588,127      $        $ (91,588,127

VRDP Shares at Liquidation Value

              (142,500,000                 (142,500,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $         —        $ (234,088,127      $         —        $ (234,088,127
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      35  


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Municipal Bonds — 116.6%  

Alabama — 2.1%

 

County of Jefferson Alabama Sewer, Refunding RB:

   

Senior Lien, Series A (AGM), 5.00%, 10/01/44

  $ 570     $ 609,324  

Senior Lien, Series A (AGM), 5.25%, 10/01/48

    1,090       1,175,761  

Sub-Lien, Series D, 6.00%, 10/01/42

    1,000       1,129,060  

Sub-Lien, Series D, 7.00%, 10/01/51

    1,545       1,824,213  
   

 

 

 
    4,738,358  
Arizona — 2.7%  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46(a)

    1,230       1,232,238  

Salt Verde Financial Corp., RB, Senior:

   

5.00%, 12/01/32

    2,000       2,266,800  

5.00%, 12/01/37

    2,360       2,676,193  
   

 

 

 
    6,175,231  
California — 11.7%  

California Health Facilities Financing Authority, RB:

   

St. Joseph Health System, Series A, 5.75%, 07/01/39

    1,530       1,568,525  

Sutter Health, Series B, 6.00%, 08/15/20(b)

    2,200       2,359,214  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33

    875       954,984  

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

   

5.25%, 08/15/39

    105       113,005  

5.25%, 08/15/49

    265       283,780  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 02/01/42

    165       177,444  

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45(a)

    2,200       2,265,098  

California Statewide Communities Development Authority, RB, Series A:

   

John Muir Health, 5.13%, 07/01/19(b)

    1,510       1,544,066  

Loma Linda University Medical Center,
5.00%, 12/01/46(a)

    330       335,607  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 05/15/39

    555       563,819  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38

    255       295,372  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.25%, 06/01/47

    730       733,986  

Montebello Unified School District, GO, CAB (NPFGC), 0.00%, 08/01/22(c)

    2,405       2,163,033  

San Diego Unified School District California, GO, CAB, Election of 2008, Series A, 0.00%, 07/01/29(c)

    3,475       2,420,511  

State of California, GO, Various Purposes:

   

6.50%, 04/01/19(b)

    4,535       4,626,199  

6.50%, 04/01/33

    3,835       3,905,679  

State of California Public Works Board, LRB, Various Capital Projects:

   

Series I, 5.00%, 11/01/38

    550       599,626  

Sub-Series I-1, 6.38%, 11/01/19(b)

    820       857,663  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 06/01/25

    890       892,207  
   

 

 

 
    26,659,818  
Colorado — 2.2%  

Colorado Educational & Cultural Facilities Authority, RB, Charter School, Colorado Springs, 5.50%, 07/01/40

    1,455       1,487,112  

Regional Transportation District, COP, Refunding, Series A, 5.38%, 06/01/31

    710       741,652  
Security   Par
(000)
    Value  
Colorado (continued)  

Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project, 6.00%, 01/15/34

  $ 1,425     $ 1,474,219  

University of Colorado, RB, Series A, 5.38%, 06/01/19(b)

    1,250       1,274,788  
   

 

 

 
    4,977,771  
Delaware — 1.9%  

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

    790       835,488  

Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 06/01/55

    840       902,227  

State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45

    2,430       2,520,882  
   

 

 

 
    4,258,597  
District of Columbia — 4.8%  

District of Columbia, Refunding RB, Georgetown University:

   

5.00%, 04/01/35

    315       348,204  

Issue, 5.00%, 04/01/42

    365       397,375  

District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 06/01/41

    1,520       1,603,858  

Metropolitan Washington Airports Authority, Refunding ARB, Dulles Toll Road, CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/35(c)

    13,485       6,458,776  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:

   

5.00%, 10/01/39

    505       515,863  

5.25%, 10/01/44

    1,470       1,504,516  
   

 

 

 
    10,828,592  
Florida — 4.5%  

City of Clearwater Florida Water & Sewer Revenue, RB, Series A, 5.25%, 12/01/19(b)

    2,375       2,457,840  

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45

    960       1,005,494  

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A-1, 5.38%, 10/01/20(b)

    2,620       2,777,043  

Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(b)

    2,095       2,377,343  

Village Community Development District No.10, Special Assessment Bonds, 5.13%, 05/01/43

    1,400       1,509,172  
   

 

 

 
    10,126,892  
Georgia — 1.6%  

County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation,
4.00%, 08/15/48

    2,645       2,586,254  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54

    370       412,957  

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

    585       601,591  
   

 

 

 
    3,600,802  
Hawaii — 0.4%  

State of Hawaii Harbor System, RB, Series A,
5.25%, 07/01/30

    945       988,479  
   

 

 

 
Idaho — 0.2%  

Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series A, 5.00%, 12/01/46

    540       579,285  
   

 

 

 
Illinois — 16.2%  

Chicago Board of Education, GO:

   

Dedicated Revenues, Series H, 5.00%, 12/01/36

    350       352,783  

Project, Series C, 5.25%, 12/01/35

    1,075       1,094,533  

Chicago Board of Education, GO, Refunding Dedicated Revenues, Series C, 5.00%, 12/01/30

    605       619,163  
 

 

 

36    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

Chicago Board of Education, GO (continued):

   

Series F, 5.00%, 12/01/22

  $ 455     $ 471,958  

Series G, 5.00%, 12/01/34

    315       318,654  

City of Chicago Illinois, GO, Project, Series A,
5.00%, 01/01/34

    1,220       1,242,777  

City of Chicago Illinois, GO, Refunding, Project, Series A, 5.25%, 01/01/32

    2,195       2,289,473  

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

    881       885,634  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien:

   

Series A, 5.75%, 01/01/21(b)

    1,680       1,806,403  

Series A, 5.75%, 01/01/39

    320       339,120  

Series C, 6.50%, 01/01/21(b)

    4,055       4,423,153  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

    730       766,544  

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42

    1,000       1,041,850  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

    560       582,064  

Illinois Finance Authority, Refunding RB, Central Dupage Health, Series B, 5.50%, 11/01/19(b)

    1,115       1,152,665  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:

   

CAB, Series B (AGM), 0.00%, 06/15/47(c)

    13,220       3,225,680  

Series B (AGM), 5.00%, 06/15/50

    3,070       3,148,592  

Series B-2, 5.00%, 06/15/50

    1,740       1,740,713  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    315       340,109  

6.00%, 06/01/21

    800       873,736  

State of Illinois, GO:

   

5.00%, 02/01/39

    1,100       1,106,468  

Series A, 5.00%, 04/01/38

    2,625       2,658,049  

State of Illinois, RB, Build Illinois, Series B,
5.25%, 06/15/19(b)

    440       448,831  

State of Illinois, GO, Refunding Series B, 5.00%, 10/01/29

    930       954,096  

State of Illinois Toll Highway Authority, RB, Series C:

   

Senior, 5.00%, 01/01/36

    1,870       2,031,792  

5.00%, 01/01/37

    2,000       2,167,260  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44

    705       750,282  
   

 

 

 
    36,832,382  
Indiana — 4.4%  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

   

6.75%, 01/01/34

    560       639,582  

7.00%, 01/01/44

    1,355       1,555,106  

Indiana Finance Authority, RB, Series A:

   

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

    2,275       2,431,839  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44

    310       324,533  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48

    1,030       1,075,598  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51

    290       305,393  

Sisters of St. Francis Health Services, 5.25%, 11/01/19(b)

    585       603,328  

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A:

   

5.75%, 05/01/19(b)

    1,075       1,095,113  

5.75%, 05/01/31

    225       229,266  

Indiana Municipal Power Agency, RB, Series B,
6.00%, 01/01/19(b)

    775       780,270  
Security   Par
(000)
    Value  
Indiana (continued)  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40

  $ 880     $ 956,226  
   

 

 

 
    9,996,254  
Iowa — 1.8%  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

Series B, 5.25%, 12/01/50(d)

    1,955       2,076,054  

Midwestern Disaster Area, 5.50%, 12/01/22

    5       5,009  

Midwestern Disaster Area, 5.25%, 12/01/25

    320       338,064  

Midwestern Disaster Area, 5.88%, 12/01/26(a)

    285       299,489  

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

    470       483,691  

Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 06/01/46

    980       981,245  
   

 

 

 
    4,183,552  
Kansas — 0.7%  

Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C(b):

   

5.75%, 11/15/19

    35       36,262  

5.75%, 11/15/19

    1,485       1,541,653  
   

 

 

 
    1,577,915  
Kentucky — 0.7%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45

    705       741,216  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 07/01/43(e)

    865       791,648  
   

 

 

 
    1,532,864  
Louisiana — 2.0%  

East Baton Rouge Sewerage Commission, RB, Series A, 5.25%, 02/01/19(b)

    570       574,794  

New Orleans Aviation Board, RB, Passenger Facility Charge, Series A, 5.25%, 01/01/41

    430       442,762  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

   

5.50%, 05/15/30

    700       727,139  

5.25%, 05/15/31

    600       631,974  

5.25%, 05/15/32

    765       815,444  

5.25%, 05/15/33

    830       878,754  

5.25%, 05/15/35

    350       370,405  
   

 

 

 
    4,441,272  
Maine — 0.1%  

Maine Health & Higher Educational Facilities Authority, RB, Series A:

   

5.00%, 07/01/19(b)

    65       66,282  

5.00%, 07/01/39

    145       147,310  
   

 

 

 
    213,592  
Maryland — 1.2%  

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 06/01/20(b)

    300       317,025  

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25

    530       547,225  

Maryland Health & Higher Educational Facilities Authority, RB, Trinity Health Credit Group, Series 2017,
5.00%, 12/01/46

    305       334,618  

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project,
6.25%, 01/01/21(b)

    1,520       1,645,309  
   

 

 

 
    2,844,177  
 

 

 

SCHEDULES OF INVESTMENTS      37  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts — 0.7%  

Massachusetts Development Finance Agency, Refunding RB, Boston University, Series P, 5.45%, 05/15/59

  $ 1,165     $ 1,330,966  

Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare System, Series J1, 5.00%, 07/01/19(b)

    255       260,202  
   

 

 

 
    1,591,168  
Michigan — 3.1%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39

    3,085       3,265,719  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:

   

5.50%, 05/15/20(b)

    530       556,023  

5.50%, 05/15/36

    425       441,805  

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44

    630       665,979  

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.75%, 11/15/19(b)

    2,105       2,184,211  
   

 

 

 
    7,113,737  
Minnesota — 2.0%  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A, 6.75%, 11/15/18(b)

    2,135       2,138,779  

Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A(f):

   

4.25%, 02/15/48

    750       716,085  

5.25%, 02/15/53

    1,500       1,599,765  
   

 

 

 
    4,454,629  
Mississippi — 0.3%  

University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 09/01/19(b)

    675       694,049  
   

 

 

 
Missouri — 0.2%  

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

    175       189,647  

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43

    175       183,943  
   

 

 

 
    373,590  
Nebraska — 0.3%  

Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.25%, 09/01/37

    575       622,978  
   

 

 

 
New Hampshire — 2.1%  

New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project(a):

   

Series B, 4.63%, 11/01/42

    1,105       1,069,971  

Series C, AMT, 4.88%, 11/01/42

    575       561,097  

New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 08/01/19(b)

    3,035       3,124,259  
   

 

 

 
    4,755,327  
New Jersey — 7.3%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    735       775,146  

5.25%, 11/01/44

    1,095       1,151,841  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(a)

    775       777,387  

New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23

    1,410       1,503,116  

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29

    1,365       1,462,707  
Security   Par
(000)
    Value  
New Jersey (continued)  

New Jersey EDA, Refunding ARB, Port Network Container Terminal LLC Project, AMT, 5.00%, 10/01/47

  $ 1,060     $ 1,098,520  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31

    1,550       1,675,132  

New Jersey State Turnpike Authority, RB:

   

Series A, 5.00%, 01/01/43

    715       765,007  

Series E, 5.00%, 01/01/45

    1,875       2,017,781  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.00%, 06/15/44

    315       324,144  

Transportation Program, Series AA, 5.00%, 06/15/44

    580       595,353  

Transportation System, Series A, 5.50%, 06/15/41

    1,575       1,643,891  

Transportation System, Series B, 5.25%, 06/15/36

    1,705       1,775,093  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.25%, 06/01/46

    390       412,234  

Sub-Series B, 5.00%, 06/01/46

    550       557,084  
   

 

 

 
    16,534,436  
New York — 8.4%  

City of New York Transitional Finance Authority Future Tax Secured, RB, Fiscal 2012, Sub-Series E-1,
5.00%, 02/01/42

    310       328,048  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A,
6.25%, 06/01/41(a)

    1,300       1,337,674  

County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 08/01/46

    715       672,100  

County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44

    229       238,728  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45

    1,405       1,351,399  

Long Island Power Authority, Refunding RB, Electric System, Series A, 5.75%, 04/01/19(b)

    1,450       1,473,418  

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38

    1,715       1,886,569  

Metropolitan Transportation Authority, Refunding RB:

   

Dedicated Tax Fund, Series B, 5.00%, 11/15/19(b)

    1,740       1,795,436  

Series C-1, 5.25%, 11/15/56

    2,415       2,638,025  

New York Counties Tobacco Trust IV, Refunding RB, Tobacco Settlement Pass-Through Bonds, Series A, 5.00%, 06/01/38

    1,415       1,377,050  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

    850       883,184  

3 World Trade Center Project, Class 1,
5.00%, 11/15/44(a)

    2,275       2,329,668  

3 World Trade Center Project, Class 2,
5.15%, 11/15/34(a)

    245       252,548  

3 World Trade Center Project, Class 2,
5.38%, 11/15/40(a)

    605       623,029  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:

   

6.00%, 12/01/36

    900       964,782  

6.00%, 12/01/42

    875       936,871  
   

 

 

 
    19,088,529  
North Carolina — 0.6%  

North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 06/01/19(b)

    970       987,489  
 

 

 

38    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
North Carolina (continued)  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21(b)

  $ 415     $ 465,315  
   

 

 

 
    1,452,804  
North Dakota — 0.3%  

County of Cass North Dakota, Refunding RB, Essentia Health Obligated Group, Series B, 5.25%, 02/15/58(f)

    695       731,467  
   

 

 

 
Ohio — 1.7%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2,
5.88%, 06/01/47

    2,570       2,495,444  

County of Franklin Ohio, RB:

   

Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40

    470       503,032  

Trinity Health Credit Group, Series 2017,
5.00%, 12/01/46

    290       311,098  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53

    580       606,001  
   

 

 

 
    3,915,575  
Oklahoma — 1.7%  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48

    855       905,249  

Oklahoma Turnpike Authority, RB:

   

2nd Series C, 4.00%, 01/01/42

    1,420       1,415,683  

Series A, 4.00%, 01/01/48

    1,500       1,477,065  
   

 

 

 
    3,797,997  
Pennsylvania — 4.0%  

City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB, Series B, AMT, 5.00%, 07/01/47

    330       352,202  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42

    460       483,294  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

   

5.00%, 06/01/33

    75       82,358  

5.00%, 06/01/34

    100       109,474  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A:

   

4.00%, 09/01/49

    415       395,188  

5.00%, 09/01/43

    905       977,916  

Pennsylvania Economic Development Financing Authority, RB:

   

American Water Co. Project, 6.20%, 04/01/39

    2,520       2,559,539  

AMT, 5.00%, 06/30/42

    2,015       2,104,789  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT,
5.50%, 11/01/44

    1,105       1,141,984  

Pennsylvania Turnpike Commission, RB, Series A,
5.00%, 12/01/44

    795       851,684  
   

 

 

 
    9,058,428  
Puerto Rico — 1.2%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 05/15/39

    1,345       1,364,099  

5.63%, 05/15/43

    1,280       1,297,421  
   

 

 

 
    2,661,520  
Rhode Island — 2.3%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    580       610,160  

Series B, 4.50%, 06/01/45

    1,900       1,873,837  

Series B, 5.00%, 06/01/50

    2,605       2,670,933  
   

 

 

 
    5,154,930  
Security   Par
(000)
    Value  
South Carolina — 3.7%  

State of South Carolina Ports Authority, ARB:

   

5.25%, 07/01/20(b)

  $ 2,285     $ 2,400,484  

AMT, 5.25%, 07/01/55

    925       997,613  

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

    2,410       2,553,274  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

    2,260       2,391,193  
   

 

 

 
    8,342,564  
Tennessee — 0.7%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A,
5.25%, 01/01/45

    980       1,030,342  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40

    495       528,378  
   

 

 

 
    1,558,720  
Texas — 8.6%  

Central Texas Regional Mobility Authority, Refunding RB:

   

Senior Lien, 6.25%, 01/01/21(b)

    1,480       1,602,011  

Sub-Lien, 5.00%, 01/01/33

    250       264,700  

City of Austin Texas Airport System, ARB, AMT,
5.00%, 11/15/39

    440       473,145  

City of Austin Texas Electric Utility Revenue, Refunding RB, Series A, 5.00%, 11/15/37

    1,500       1,622,115  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 01/01/23(b)

    325       382,480  

County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18(b)

    1,910       1,918,213  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/48

    3,330       3,542,687  

La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 08/15/19(b)

    450       464,616  

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 09/01/31(b)(c)

    1,400       585,998  

Permanent University Fund — University of Texas System, Refunding RB, Series B, 4.00%, 07/01/41

    2,725       2,751,787  

San Antonio Water System, Refunding RB, Junior Lien, Series A, 5.00%, 05/15/48

    1,825       2,015,694  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:

   

LBJ Infrastructure Group LLC, 7.00%, 06/30/40

    2,000       2,129,260  

NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39

    1,700       1,777,095  
   

 

 

 
    19,529,801  
Utah — 0.6%  

City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/48

    640       691,379  

Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/47

    665       712,747  
   

 

 

 
    1,404,126  
Virginia — 2.2%  

County of Hanover Virginia EDA, Refunding RB, Covenant Woods, Series A:

   

5.00%, 07/01/42

    625       630,994  

Residential Care Facility, 5.00%, 07/01/47

    970       977,682  

Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A,
5.50%, 07/01/57

    810       933,282  
 

 

 

SCHEDULES OF INVESTMENTS      39  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Virginia (continued)  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 01/01/32

  $ 550     $ 583,578  

6.00%, 01/01/37

    1,830       1,991,186  
   

 

 

 
    5,116,722  
Washington — 2.3%  

Grant County Public Utility District No. 2, Refunding RB, Series A, 5.00%, 01/01/43

    1,555       1,686,211  

Port of Seattle Washington, ARB, Intermediate Lien, Series C, AMT, 5.00%, 05/01/42

    1,085       1,167,362  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40

    540       578,151  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45

    1,625       1,757,584  
   

 

 

 
    5,189,308  
Wisconsin — 3.0%  

State of Wisconsin, Refunding RB, Series A,
6.00%, 05/01/19(b)

    4,980       5,081,841  

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

    1,710       1,753,434  
   

 

 

 
    6,835,275  
Wyoming — 0.1%  

Wyoming Municipal Power Agency, Inc., RB, Series A, 5.00%, 01/01/19(b)

    210       211,052  
   

 

 

 

Total Municipal Bonds — 116.6%
(Cost — $251,893,028)

 

    264,744,565  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(g)

 

California — 8.3%

 

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area:

   

Toll Bridge, 4.00%, 04/01/42(h)

    2,257       2,275,088  

Series F-1, 5.63%, 04/01/19(b)

    2,271       2,307,756  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B,
5.00%, 11/01/19(b)

    6,600       6,810,034  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.00%, 05/15/40

    4,121       4,267,944  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    2,250       2,474,246  

San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(b)

    748       767,201  
   

 

 

 
    18,902,269  
Colorado — 2.7%  

City & County of Denver Colorado Airport System Revenue, Refunding ARB, Subordinate System, Series A, AMT, 5.25%, 12/01/48(h)

    1,664       1,848,517  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 07/01/34(h)

    1,490       1,522,445  

County of Adams Colorado, COP, Refunding,
4.00%, 12/01/45

    2,700       2,669,085  
   

 

 

 
    6,040,047  
Florida — 1.8%  

County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/20(b)

    3,939       4,151,806  
   

 

 

 
Security   Par
(000)
    Value  
Illinois — 0.4%  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 4.00%, 02/15/41

  $ 1,034     $ 994,197  
   

 

 

 
Massachusetts — 4.4%  

Commonwealth of Massachusetts Transportation Fund Revenue, RB, Rail Enhancement Program, Series A, 4.00%, 06/01/45

    1,502       1,505,276  

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 5.00%, 07/01/47

    3,359       3,604,124  

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

    4,502       4,771,926  
   

 

 

 
    9,881,326  
New Hampshire — 0.6%  

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 06/01/19(b)(h)

    1,410       1,436,467  
   

 

 

 
New York — 7.6%  

City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40

    1,110       1,131,345  

Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(h):

   

5.75%, 02/15/21(b)

    687       739,163  

5.75%, 02/15/47

    423       454,711  

New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds,
5.25%, 12/15/43

    7,440       8,019,467  

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(h)

    4,460       4,854,641  

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

    1,860       2,054,320  
   

 

 

 
    17,253,647  
North Carolina — 1.4%  

North Carolina Capital Facilities Finance Agency, Refunding RB:

   

Duke University Project, Series B, 5.00%, 10/01/55

    1,830       2,013,448  

Wake Forest University, 5.00%, 01/01/19(b)

    1,080       1,085,541  
   

 

 

 
    3,098,989  
Ohio — 4.3%  

State of Ohio, Refunding RB, Cleveland Clinic Health System Obligated Group, Series A, 5.50%, 01/01/19(b)

    9,644       9,698,877  
   

 

 

 
Pennsylvania — 0.8%  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    1,695       1,897,434  
   

 

 

 
Rhode Island — 0.5%  

Narragansett Bay Commission, Refunding RB, Wastewater System, Series A, 4.00%, 09/01/43

    1,140       1,141,554  
   

 

 

 
Texas — 6.6%  

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

    1,720       1,843,853  

County of Harris Texas, RB, Toll Road, Senior Lien, Series A(h):

 

 

5.00%, 08/15/19(b)

    2,620       2,671,693  

5.00%, 08/15/38

    2,004       2,043,614  

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

    2,350       2,492,328  

Lower Colorado River Authority, Refunding RB, LCRA Transmission Services Corporation Project,
4.00%, 05/15/43

    1,504       1,489,783  

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing And Expansion Project,
4.00%, 09/15/42

    2,295       2,300,630  

University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43

    2,041       2,201,554  
   

 

 

 
    15,043,455  
 

 

 

40    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Utah — 1.1%  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19(b)

  $ 2,519     $ 2,579,285  
   

 

 

 
Virginia — 1.0%  

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

    2,095       2,174,511  
   

 

 

 
Wisconsin — 2.6%  

Wisconsin Health & Educational Facilities Authority, Refunding RB:

   

Froedtert & Community Health, Inc., Obligated Group, Series C, 5.25%, 04/01/19(b)(h)

    3,959       4,012,581  

The Medical College of Wisconsin, Inc., 4.00%, 12/01/46

    2,059       1,975,137  
   

 

 

 
    5,987,718  

Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 44.1%
(Cost — $98,532,977)

 

    100,281,582  
 

 

 

 

Total Long-Term Investments — 160.7%
(Cost — $350,426,005)

 

    365,026,147  
 

 

 

 
     Shares         
Short-Term Securities — 1.4%  

BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.45%(i)(j)

    3,203,888       3,204,209  
   

 

 

 

Total Short-Term Securities — 1.4%
(Cost — $3,204,209)

 

    3,204,209  
 

 

 

 

Total Investments — 162.1%
(Cost — $353,630,214)

 

    368,230,356  

Other Assets Less Liabilities — 1.4%

 

    3,326,429  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (26.7)%

 

    (60,716,940

VMTP Shares at Liquidation Value — (36.8)%

 

    (83,700,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 227,139,845  
 

 

 

 
(a) 

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

(b) 

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

(c) 

Zero-coupon bond.

(d) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(e) 

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(f) 

When-issued security.

(g) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(h) 

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expire between December 1, 2018 to April 1, 2039, is $13,285,379. See Note 4 of the Notes to Financial Statements for details.

(i) 

Annualized 7-day yield as of period end.

 
(j) 

During the six months ended October 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/18
     Net
Activity
     Shares
Held at
10/31/18
     Value at
10/31/18
     Income      Net
Realized
Gain (Loss) (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     733,990        2,469,898        3,203,888      $ 3,204,209      $ 22,334      $ 24      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount
(000)
       Value /
Unrealized
Appreciation
(Depreciation)
 

Short Contracts:

                 

10-Year U.S. Treasury Note

     5          12/19/18        $ 592        $ 541  

Long U.S. Treasury Bond

     46          12/19/18          6,354          140,831  

5-Year U.S. Treasury Note

     15          12/31/18          1,686          6,535  
                 

 

 

 
                  $ 147,907  
                 

 

 

 

 

 

SCHEDULES OF INVESTMENTS      41  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund, Inc. (MHD)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 147,907      $      $ 147,907  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative appreciation (depreciation) on futures contracts if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

 

For the six months ended October 31, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 221,664      $      $ 221,664  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ 135,314      $      $ 135,314  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 12,202,168  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments(a)

   $        $ 365,026,147        $         —        $ 365,026,147  

Short-Term Securities

     3,204,209                            3,204,209  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,204,209        $ 365,026,147        $        $ 368,230,356  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 147,907        $        $        $ 147,907  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 
  (b) 

Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

 

TOB Trust Certificates

   $         —        $ (60,465,002      $         —        $ (60,465,002

VMTP Shares at Liquidation Value

              (83,700,000                 (83,700,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (144,165,002      $        $ (144,165,002
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

42    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Municipal Bonds — 110.3%  

Alabama — 1.3%

 

County of Jefferson Alabama Sewer Revenue, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42

  $ 1,875     $ 2,116,987  
   

 

 

 
Arizona — 1.1%  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46(a)

    890       891,620  

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

    810       918,524  
   

 

 

 
      1,810,144  
California — 14.0%  

Benicia Unified School District, GO, CAB, Series A (NPFGC), 0.00%, 08/01/20(b)

    2,000       1,924,660  

California Health Facilities Financing Authority, RB:

   

St. Joseph Health System, Series A, 5.75%, 07/01/39

    1,110       1,137,950  

Sutter Health, Series B, 6.00%, 08/15/20(c)

    1,585       1,699,707  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33

    445       485,677  

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

   

5.25%, 08/15/39

    80       86,099  

5.25%, 08/15/49

    195       208,820  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 02/01/42

    120       129,050  

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45(a)

    730       751,601  

California Statewide Communities Development Authority, RB, Series A:

   

John Muir Health, 5.13%, 07/01/19(c)

    1,090       1,114,590  

Loma Linda University Medical Center,
5.00%, 12/01/46(a)

    235       238,993  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 05/15/39

    400       406,356  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38

    185       214,289  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.25%, 06/01/47

    540       542,948  

San Diego Unified School District California, GO, CAB, Election of 2008, Series A, 0.00%, 07/01/29(b)

    2,525       1,758,789  

San Marino Unified School District, GO, Series A (NPFGC), 0.00%, 07/01/19(b)

    2,070       2,044,166  

State of California, GO, Various Purposes:

   

6.50%, 04/01/19(c)

    3,965       4,044,736  

6.00%, 03/01/33

    1,265       1,332,956  

6.50%, 04/01/33

    3,360       3,421,925  

State of California Public Works Board, LRB, Various Capital Projects:

   

Series I, 5.00%, 11/01/38

    405       441,543  

Sub-Series I-1, 6.38%, 11/01/19(c)

    600       627,558  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 06/01/25

    670       671,662  
   

 

 

 
      23,284,075  
Colorado — 2.3%  

City & County of Denver Colorado, COP, Colorado Convention Center Expansion Project, Series A, 4.00%, 06/01/48

    680       674,152  

City & County of Denver Colorado, RB,Series A-2, 0.00%, 08/01/37(b)

    1,490       676,058  

Colorado Educational & Cultural Facilities Authority, RB, Charter School, Colorado Springs, 5.50%, 07/01/40

    1,055       1,078,284  
Security   Par
(000)
    Value  
Colorado (continued)  

Regional Transportation District, COP, Refunding, Series A, 5.38%, 06/01/31

  $ 510     $ 532,736  

University of Colorado, RB, Series A, 5.38%, 06/01/19(c)

    920       938,243  
   

 

 

 
      3,899,473  
Connecticut — 0.2%  

Connecticut HFA, Refunding RB, S/F Housing,
Sub-Series B-1, 4.00%, 05/15/45

    265       258,221  
   

 

 

 
Delaware — 1.6%  

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

    570       602,821  

State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45

    2,050       2,126,670  
   

 

 

 
      2,729,491  
District of Columbia — 4.1%  

District of Columbia HFA, RB, M/F Housing, Series B-2 (FHA), 4.10%, 09/01/39

    510       500,162  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road:

   

1st Senior Lien, Series A, 5.00%, 10/01/39

    255       260,485  

1st Senior Lien, Series A, 5.25%, 10/01/44

    1,000       1,023,480  

CAB, 2nd Senior Lien, Series B (AGC),
0.00%, 10/01/34(b)

    10,170       5,127,409  
   

 

 

 
      6,911,536  
Florida — 3.6%  

City of Clearwater Florida Water & Sewer Revenue, RB, Series A, 5.25%, 12/01/19(c)

    1,725       1,785,168  

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45

    700       733,173  

Florida Housing Finance Corp., RB, S/F Housing, Series 1 (Ginnie Mae, Fannie Mae & Freddie Mac),
3.75%, 07/01/42

    640       609,050  

Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(c)

    1,525       1,730,524  

Village Community Development District No.10, Special Assessment Bonds, 5.13%, 05/01/43

    1,120       1,207,337  
   

 

 

 
      6,065,252  
Georgia — 1.8%  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54

    270       301,347  

County of Griffin-Spalding Hospital Authority, RB, Revenue Anticipation Certificates, 4.00%, 04/01/42

    2,310       2,218,178  

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

    420       431,911  
   

 

 

 
      2,951,436  
Hawaii — 0.4%  

State of Hawaii Harbor System, RB, Series A,
5.25%, 07/01/30

    680       711,287  
   

 

 

 
Idaho — 1.2%  

County of Power Idaho Industrial Development Corp., RB, FMC Corp. Project, AMT, 6.45%, 08/01/32

    2,000       2,007,540  
   

 

 

 
Illinois — 15.1%  

Chicago Board of Education, GO, Series C:

   

Series H, 5.00%, 12/01/46

    240       239,986  

Project, 5.25%, 12/01/35

    805       819,627  

Chicago Board of Education, GO, Refunding, Dedicated Revenues:

   

5.00%, 12/01/34

    240       242,784  

Series D, 5.00%, 12/01/25

    435       450,447  
 

 

 

SCHEDULES OF INVESTMENTS      43  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

Chicago Board of Education, GO, Refunding Series F, 5.00%, 12/01/24

  $ 340     $ 352,971  

City of Chicago Illinois, GO, Project, Series A,
5.00%, 01/01/34

    885       901,523  

City of Chicago Illinois, GO, Refunding, Project, Series A, 5.25%, 01/01/32

    2,290       2,388,561  

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

    587       590,088  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien:

   

Series A, 5.75%, 01/01/21(c)

    2,100       2,258,004  

Series A, 5.75%, 01/01/39

    400       423,900  

Series C, 6.50%, 01/01/21(c)

    2,935       3,201,469  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

    530       556,532  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

    410       426,154  

Illinois Finance Authority, Refunding RB:

   

Central Dupage Health, Series B, 5.50%, 11/01/19(c)

    800       827,024  

Southern Illinois Healthcare Enterprises, Inc.,
4.00%, 03/01/35

    1,290       1,255,209  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:

   

CAB, Series B (AGM), 0.00%, 06/15/47(b)

    9,555       2,331,420  

Series B (AGM), 5.00%, 06/15/50

    2,230       2,287,088  

Series B-2, 5.00%, 06/15/50

    1,260       1,260,516  

Railsplitter Tobacco Settlement Authority, RB(c):

   

5.50%, 06/01/21

    230       248,333  

6.00%, 06/01/21

    500       546,085  

State of Illinois, GO:

   

5.00%, 02/01/39

    810       814,763  

Series A, 5.00%, 04/01/38

    1,920       1,944,173  

State of Illinois, RB, Build Illinois, Series B, 5.25%, 06/15/19(c)

    315       321,322  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44

    520       553,399  
   

 

 

 
      25,241,378  
Indiana — 4.8%  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

   

6.75%, 01/01/34

    415       473,976  

7.00%, 01/01/44

    1,000       1,147,680  

Indiana Finance Authority, RB, Series A:

   

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

    1,660       1,774,440  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44

    225       235,548  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48

    740       772,760  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51

    210       221,147  

Sisters of St. Francis Health Services,
5.25%, 11/01/19(c)

    420       433,158  

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A:

   

5.75%, 05/01/19(c)

    1,370       1,395,633  

5.75%, 05/01/31

    290       295,498  

Indiana Municipal Power Agency, RB, Series B,
6.00%, 01/01/19(c)

    565       568,842  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40

    640       695,437  
   

 

 

 
      8,014,119  
Security   Par
(000)
    Value  
Iowa — 1.3%  

Iowa Finance Authority, RB, Lifespace Communities, Series A, 5.00%, 05/15/43

  $ 250     $ 256,280  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

Series B, 5.25%, 12/01/50(d)

    240       254,861  

Midwestern Disaster Area, 5.25%, 12/01/25

    940       993,063  

Midwestern Disaster Area, 5.88%, 12/01/26(a)

    210       220,676  

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

    415       427,089  
   

 

 

 
      2,151,969  
Kansas — 0.7%  

Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C(c):

   

5.75%, 11/15/19

    25       25,901  

5.75%, 11/15/19

    1,080       1,121,202  
   

 

 

 
      1,147,103  
Kentucky — 0.7%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45

    525       551,969  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 07/01/43(e)

    635       581,152  
   

 

 

 
      1,133,121  
Louisiana — 3.0%  

East Baton Rouge Sewerage Commission, RB, Series A, 5.25%, 02/01/19(c)

    420       423,532  

Louisiana Public Facilities Authority, Refunding RB, Ochsner Clinic Foundation Project, 5.00%, 05/15/47

    1,635       1,714,412  

New Orleans Aviation Board, RB, Passenger Facility Charge, Series A, 5.25%, 01/01/41

    310       319,201  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

   

5.50%, 05/15/30

    510       529,773  

5.25%, 05/15/31

    435       458,181  

5.25%, 05/15/32

    555       591,597  

5.25%, 05/15/33

    600       635,244  

5.25%, 05/15/35

    255       269,866  
   

 

 

 
      4,941,806  
Maine — 1.1%  

Maine Health & Higher Educational Facilities Authority, RB, Series A:

   

5.00%, 07/01/19(c)

    45       45,888  

5.00%, 07/01/39

    105       106,673  

Maine State Housing Authority, RB:

   

M/F Housing, Series E, 4.15%, 11/15/38(f)

    700       702,611  

M/F Housing, Series E, 4.25%, 11/15/43(f)

    625       626,387  

S/F Housing, Series C, 3.95%, 11/15/43

    335       323,104  
   

 

 

 
      1,804,663  
Maryland — 1.1%  

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 06/01/20(c)

    220       232,485  

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25

    390       402,675  

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project,
6.25%, 01/01/21(c)

    1,095       1,185,272  
   

 

 

 
      1,820,432  
 

 

 

44    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts — 1.9%  

Massachusetts Development Finance Agency, Refunding RB:

   

Boston University, Series P, 5.45%, 05/15/59

  $ 845     $ 965,379  

Suffolk University, 4.00%, 07/01/39

    1,140       1,074,039  

Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare System, Series J1, 5.00%, 07/01/19(c)

    360       367,344  

Massachusetts HFA, Refunding RB, Series F, AMT, 5.70%, 06/01/40

    805       806,296  
   

 

 

 
      3,213,058  
Michigan — 5.6%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39

    2,235       2,365,926  

Eastern Michigan University, RB, Series A,
4.00%, 03/01/47

    1,820       1,699,880  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:

   

5.50%, 05/15/20(c)

    380       398,658  

5.50%, 05/15/36

    310       322,257  

Michigan Finance Authority, Refunding RB:

   

Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44

    455       480,985  

Trinity Health Credit Group, Series A, 4.00%, 12/01/40

    1,835       1,808,466  

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.75%, 11/15/19(c)

    1,520       1,577,198  

State of Michigan Housing Development Authority, RB, S/F Housing, Series C, 4.13%, 12/01/38(f)

    730       730,803  
   

 

 

 
      9,384,173  
Missouri — 0.2%  

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

    125       135,462  

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43

    130       136,643  
   

 

 

 
      272,105  
New Hampshire — 2.1%  

New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project(a):

   

Series B, 4.63%, 11/01/42

    735       711,701  

Series C, AMT, 4.88%, 11/01/42

    420       409,844  

New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 08/01/19(c)

    1,530       1,574,997  

New Hampshire Housing Finance Authority, RB, Cimarron, Whittier Falls & Marshall (FHA), 4.00%, 07/01/52

    800       756,120  
   

 

 

 
      3,452,662  
New Jersey — 7.7%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    530       558,949  

5.25%, 11/01/44

    790       831,009  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(a)

    560       561,725  

New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23

    1,040       1,108,681  

New Jersey EDA, RB:

   

Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29

    990       1,060,864  

S/F Housing, Series B, 4.50%, 06/15/40

    1,270       1,247,534  

Series WW, 5.00%, 06/15/36

    210       218,503  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31

    1,125       1,215,821  
Security   Par
(000)
    Value  
New Jersey (continued)  

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/45

  $ 715     $ 769,447  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.00%, 06/15/44

    330       339,580  

Transportation Program, Series AA, 5.00%, 06/15/44

    610       626,147  

Transportation System, Series A, 5.50%, 06/15/41

    1,025       1,069,833  

Transportation System, Series B, 5.25%, 06/15/36

    1,235       1,285,771  

New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/36

    155       162,393  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/46

    770       794,825  

Series A, 5.25%, 06/01/46

    200       211,402  

Sub-Series B, 5.00%, 06/01/46

    775       784,982  
   

 

 

 
      12,847,466  
New Mexico — 1.0%  

New Mexico Mortgage Finance Authority, RB, S/F Housing, Mortgage Program, Class I, Fannie Mae & Freddie Mac):

   

Series B (Ginnie Mae, 3.90%, 07/01/48

    705       677,385  

Series C (Ginnie Mae, 3.88%, 07/01/43

    1,085       1,047,296  
   

 

 

 
      1,724,681  
New York — 7.6%  

City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 11/01/38(f)

    1,080       1,065,614  

City of New York Transitional Finance Authority Future Tax Secured, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 02/01/42

    740       783,083  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41(a)

    1,000       1,028,980  

County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 08/01/46

    555       521,700  

County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44

    257       267,958  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45

    1,020       981,087  

Long Island Power Authority, Refunding RB, Electric System, Series A, 5.75%, 04/01/19(c)

    1,050       1,066,958  

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38

    1,255       1,380,550  

Metropolitan Transportation Authority, Refunding RB, Dedicated Tax Fund, Series B, 5.00%, 11/15/19(c)

    1,270       1,310,462  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

    615       639,010  

3 World Trade Center Project, Class 1, 5.00%, 11/15/44(a)

    1,495       1,530,925  

3 World Trade Center Project, Class 2, 5.15%, 11/15/34(a)

    175       180,392  

3 World Trade Center Project, Class 2, 5.38%, 11/15/40(a)

    440       453,112  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:

   

6.00%, 12/01/36

    650       696,787  

6.00%, 12/01/42

    630       674,547  
   

 

 

 
      12,581,165  
North Carolina — 0.2%  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21(c)

    305       341,978  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      45  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Ohio — 1.7%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.88%, 06/01/47

  $ 1,855     $ 1,801,186  

County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40

    350       374,598  

Ohio HFA, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 09/01/48

    150       146,163  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53

    420       438,829  
   

 

 

 
      2,760,776  
Oklahoma — 0.6%  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.50%, 08/15/57

    625       668,875  

Oklahoma Turnpike Authority, RB, Series A, 4.00%, 01/01/48

    280       275,719  
   

 

 

 
      944,594  
Oregon — 0.1%  

State of Oregon Housing & Community Services Department, RB, S/F Housing, Mortgage Program, Series C, 3.95%, 07/01/43

    210       205,771  
   

 

 

 
Pennsylvania — 3.1%  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42

    335       351,964  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49

    470       447,562  

Pennsylvania Economic Development Financing Authority, RB:

   

American Water Co. Project, 6.20%, 04/01/39

    1,830       1,858,713  

AMT, 5.00%, 06/30/42

    440       459,606  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT,
5.50%, 11/01/44

    800       826,776  

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

    585       626,711  

State Public School Building Authority, Refunding RB, The School District of Philadelphia Project, Series A, 5.00%, 06/01/34

    550       594,341  
   

 

 

 
      5,165,673  
Puerto Rico — 1.2%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 05/15/39

    975       988,845  

5.63%, 05/15/43

    925       937,589  
   

 

 

 
      1,926,434  
Rhode Island — 2.2%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    420       441,840  

Series B, 4.50%, 06/01/45

    1,375       1,356,066  

Series B, 5.00%, 06/01/50

    1,895       1,942,963  
   

 

 

 
      3,740,869  
South Carolina — 4.3%  

South Carolina Ports Authority, ARB, AMT, 5.00%, 07/01/55

    710       755,859  

State of South Carolina Ports Authority, ARB:

   

5.25%, 07/01/20(c)

    1,650       1,733,391  

AMT, 5.25%, 07/01/55

    670       722,595  

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

    2,040       2,161,278  
Security   Par
(000)
    Value  
South Carolina (continued)  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

  $ 1,635     $ 1,729,912  
   

 

 

 
      7,103,035  
Tennessee — 0.7%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45

    720       756,986  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40

    360       384,275  
   

 

 

 
      1,141,261  
Texas — 4.4%  

Central Texas Regional Mobility Authority, Refunding RB:

   

Senior Lien, 6.25%, 01/01/21(c)

    1,070       1,158,211  

Sub-Lien, 5.00%, 01/01/33

    180       190,584  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 01/01/23(c)

    240       282,446  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A(b):

   

0.00%, 09/15/40

    2,525       946,749  

0.00%, 09/15/41

    1,395       495,253  

La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 08/15/19(c)

    320       330,394  

New Hope Cultural Education Facilities Corp., RB, Collegiate Housing Tarleton State University Project, 5.00%, 04/01/35

    145       151,458  

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 09/01/31(b)(c)

    1,015       424,849  

North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49(f)

    610       598,776  

Texas Department of Housing & Community Affairs, RB, S/F Housing Mortgage, Series A (Ginnie Mae), 4.25%, 09/01/43

    195       195,846  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:

   

LBJ Infrastructure Group LLC, 7.00%, 06/30/40

    1,165       1,240,294  

NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39

    1,300       1,358,955  
   

 

 

 
      7,373,815  
Virginia — 1.1%  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 01/01/32

    400       424,420  

6.00%, 01/01/37

    1,345       1,463,468  
   

 

 

 
      1,887,888  
Washington — 1.0%  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40

    390       417,554  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45

    1,195       1,292,500  
   

 

 

 
      1,710,054  
West Virginia — 1.2%  

West Virginia Hospital Finance Authority, RB, Improvement West Virginia University Health System Obligated Group, Series A, 4.00%, 06/01/51

    2,260       2,053,391  
   

 

 

 
Wisconsin — 3.0%  

State of Wisconsin, Refunding RB, Series A, 6.00%, 05/01/19(c)

    3,620       3,694,029  
 

 

 

46    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Wisconsin (continued)  

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

  $ 1,235     $ 1,266,369  
   

 

 

 
      4,960,398  
   

 

 

 

Total Municipal Bonds — 110.3%
(Cost — $175,018,089)

 

    183,791,280  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(g)

 

Arizona — 0.5%

 

County of Maricopa Industrial Development Authority, RB, Banner Health, Series A, 4.00%, 01/01/41

    915       901,720  
   

 

 

 
California — 8.2%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area:

   

Toll Bridge, 4.00%, 04/01/42(h)

    1,638       1,650,949  

Series F-1, 5.63%, 04/01/19(c)

    1,640       1,667,277  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19(c)

    4,770       4,921,797  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.00%, 05/15/40

    2,967       3,072,920  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    1,635       1,797,952  

San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(c)

    553       567,729  
   

 

 

 
      13,678,624  
Colorado — 1.8%  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 07/01/34(h)

    1,080       1,103,517  

County of Adams Colorado, COP, Refunding, 4.00%, 12/01/45

    1,950       1,927,673  
   

 

 

 
      3,031,190  
Florida — 3.8%  

City of Tampa Florida, RB, Baycare Health System, Series A, 4.00%, 11/15/46

    1,932       1,881,567  

County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/20(c)

    2,840       2,992,673  

South Miami Health Facilities Authority, Refunding RB, Baptist Health South Florida, 5.00%, 08/15/47

    1,290       1,404,642  
   

 

 

 
      6,278,882  
Illinois — 0.6%  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 4.00%, 02/15/41

    1,004       965,380  
   

 

 

 
Louisiana — 0.7%  

County of St. Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, First Lien, Series A, 4.00%, 05/01/41

    1,245       1,249,955  
   

 

 

 
Maryland — 2.1%  

City of Baltimore Maryland, RB, Wastewater Project, Series A, 5.00%, 07/01/46

    1,515       1,660,606  

State of Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/42

    1,740       1,921,221  
   

 

 

 
      3,581,827  
Massachusetts — 3.4%  

Commonwealth of Massachusetts, GO, Series A, 5.00%, 01/01/46

    1,982       2,190,331  
Security   Par
(000)
    Value  
Massachusetts (continued)  

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

  $ 3,211     $ 3,403,974  
   

 

 

 
      5,594,305  
Michigan — 0.8%  

State of Michigan Housing Development Authority, RB, M/F Housing, Series A, 4.05%, 10/01/48

    1,409       1,377,511  
   

 

 

 
Nevada — 1.5%  

County of Clark Nevada, GO, Stadium Improvement, Series A, 5.00%, 05/01/48

    2,260       2,505,264  
   

 

 

 
New Hampshire — 0.6%  

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 06/01/19(c)(h)

    1,020       1,039,147  
   

 

 

 
New York — 11.9%  

City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40

    810       825,576  

City of New York Transitional Finance Authority, BARB:

   

Fiscal 2009, Series S-3, 5.25%, 01/15/39

    3,299       3,322,332  

Series S-1, 4.00%, 07/15/42(h)

    1,395       1,380,171  

Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(h):

   

5.75%, 02/15/21(c)

    501       539,389  

5.75%, 02/15/47

    309       331,816  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    2,337       2,552,950  

New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

    5,400       5,820,581  

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(h)

    3,250       3,537,575  

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

    1,350       1,491,039  
   

 

 

 
      19,801,429  
North Carolina — 1.4%  

North Carolina Capital Facilities Finance Agency, Refunding RB:

   

Duke University Project, Series B, 5.00%, 10/01/55

    1,320       1,452,323  

Wake Forest University, 5.00%, 01/01/19(c)

    800       804,104  
   

 

 

 
      2,256,427  
Ohio — 4.2%  

State of Ohio, Refunding RB, Cleveland Clinic Health System Obligated Group, Series A, 5.50%, 01/01/19(c)

    6,974       7,013,962  
   

 

 

 
Pennsylvania — 1.8%  

Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/36(h)

    1,559       1,555,284  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    1,229       1,376,080  
   

 

 

 
      2,931,364  
Rhode Island — 0.4%  

Rhode Island Housing & Mortgage Finance Corp., Refunding RB, S/F Housing, Home Ownership Opportunity Bonds, Series 69-B (Ginnie Mae, Fannie Mae & Freddie Mac), 3.95%, 10/01/43

    750       740,599  
   

 

 

 
Texas — 10.1%  

City of Houston Texas Community College, GO, Limited Tax, 4.00%, 02/15/43

    1,395       1,384,212  

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

    1,260       1,350,729  
 

 

 

SCHEDULES OF INVESTMENTS      47  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

County of Harris Texas, RB, Toll Road, Senior Lien, Series A(h):

 

 

5.00%, 08/15/19(c)

  $ 1,905     $ 1,943,050  

5.00%, 08/15/38

    1,457       1,486,265  

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

    1,710       1,813,566  

County of Harris Texas Toll Road Authority, Refunding RB, Senior Lien, Series A, 5.00%, 08/15/43

    1,859       2,057,502  

County of Hidalgo Texas, GO, Series A, 4.00%, 08/15/43

    2,297       2,254,626  

Howe Texas Independent School District, GO, School Building (PSF-GTD), 4.00%, 08/15/43

    1,095       1,079,685  

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing And Expansion Project, 4.00%, 09/15/42

    1,499       1,502,842  

University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43

    1,801       1,942,547  
   

 

 

 
    16,815,024  
Utah — 0.9%  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19(c)

    1,395       1,427,818  
   

 

 

 
Virginia — 1.0%  

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

    1,553       1,611,951  
   

 

 

 
Washington — 0.9%  

Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.13%, 08/15/43

    1,445       1,435,389  
   

 

 

 
Wisconsin — 1.7%  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group, Series C, 5.25%, 04/01/19(c)(h)

    2,859       2,897,975  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 58.3%
(Cost — $96,547,949)

 

    97,135,743  
 

 

 

 

Total Long-Term Investments — 168.6%
(Cost — $271,566,038)

 

    280,927,023  
 

 

 

 
Security       
Shares
    Value  
Short-Term Securities — 0.9%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.45%(i)(j)

    1,461,701     $ 1,461,847  
   

 

 

 

Total Short-Term Securities — 0.9%
(Cost — $1,461,847)

 

    1,461,847  
 

 

 

 

Total Investments — 169.5%
(Cost — $273,027,885)

 

    282,388,870  

Liabilities in Excess of Other Assets — (0.4)%

 

    (655,429

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (36.1)%

 

    (60,120,939

VMTP Shares at Liquidation Value — (33.0)%

 

    (55,000,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 166,612,502  
 

 

 

 

 

(a) 

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

(b) 

Zero-coupon bond.

(c) 

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

(d) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(e) 

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(f) 

When-issued security.

(g) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(h) 

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between December 1, 2018 to April 1, 2039, is $10,825,937. See Note 4 of the Notes to Financial Statements for details.

(i) 

Annualized 7-day yield as of period end.

 
(j) 

During the six months ended October 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/18
     Net
Activity
     Shares
Held at
10/31/18
     Value at
10/31/18
     Income      Net
Realized

Gain (Loss) (a)
     Change in
Unrealized

Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     978,065        483,636        1,461,701      $ 1,461,847      $ 4,221      $ 218      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts:

                 

10-Year U.S. Treasury Note

     1          12/19/18        $ 118        $ (813

Long U.S. Treasury Bond

     43          12/19/18          5,939          136,367  

5-Year U.S. Treasury Note

     9          12/31/18          1,011          12  
                 

 

 

 
                  $ 135,566  
                 

 

 

 

 

 

48    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 136,379      $      $ 136,379  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized depreciation(a)

   $      $      $      $      $ 813      $      $ 813  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

 

For the six months ended October 31, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 181,181      $      $ 181,181  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ 128,614      $      $ 128,614  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 8,667,496  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments(a)

   $        $ 280,927,023        $        $ 280,927,023  

Short-Term Securities

     1,461,847                            1,461,847  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,461,847        $ 280,927,023        $          $ 282,388,870  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 136,379        $        $        $ 136,379  

Liabilities:

 

Interest rate contracts

     (813                             —          (813
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 135,566        $          $          $ 135,566  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 
  (b) 

Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

 

 

 

SCHEDULES OF INVESTMENTS      49  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

 

TOB Trust Certificates

   $        $ (59,871,076      $        $ (59,871,076

VMTP Shares at Liquidation Value

              (55,000,000                 (55,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (114,871,076      $             —        $ (114,871,076
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

50    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Municipal Bonds — 139.8%  

Alabama — 3.0%

 

City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 06/01/19(a)

  $ 2,330     $ 2,383,893  

City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35

    565       610,765  

Lower Alabama Gas District, RB, Series A, 5.00%, 09/01/46

    1,800       2,015,820  
   

 

 

 
    5,010,478  
California — 18.6%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20(a)

    1,730       1,855,200  

California Municipal Finance Authority, ARB, Senior Lien-Linxs APM Project, AMT, 5.00%, 12/31/43

    800       854,944  

Central Unified School District, GO, Election of 2008, Series A (AGC), 5.63%, 08/01/19(a)

    1,325       1,363,306  

City & County of San Francisco California Airports Commission, Refunding ARB, AMT, Series A:

   

2nd, 5.50%, 05/01/28

    1,085       1,210,415  

2nd, 5.25%, 05/01/33

    850       925,794  

5.00%, 05/01/44

    1,090       1,173,374  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT:

   

5.50%, 03/01/30

    2,400       2,555,184  

5.75%, 03/01/34

    2,180       2,332,186  

City of Sunnyvale California, Refunding RB, 5.25%, 04/01/20(a)

    1,605       1,681,013  

County of Riverside Public Financing Authority, RB, Capital Facilities Project, 5.25%, 11/01/40

    2,500       2,834,100  

Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33

    1,420       1,614,668  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 08/01/20(a)

    1,000       1,057,980  

Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 08/01/21(a)

    1,335       1,462,639  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series J:

   

5.25%, 05/15/23(a)

    3,170       3,601,342  

5.25%, 05/15/38

    900       993,312  

State of California Public Works Board, LRB, Various Capital Projects, Series I:

   

5.50%, 11/01/30

    1,500       1,692,120  

5.50%, 11/01/31

    2,465       2,777,044  

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33

    725       804,011  

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/40

    540       614,115  
   

 

 

 
    31,402,747  
Colorado — 2.3%  

City & County of Denver Colorado Airport System, ARB, Series A, AMT:

   

5.50%, 11/15/28

    1,000       1,120,000  

5.50%, 11/15/30

    340       379,790  

5.50%, 11/15/31

    405       451,794  

Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 05/15/19(a)

    1,900       1,941,344  
   

 

 

 
    3,892,928  
Connecticut — 1.0%  

State of Connecticut, GO, Series A, 5.00%, 04/15/38

    985       1,051,487  

State of Connecticut Health & Educational Facility Authority, Refunding RB, Sacred Heart University Issue, Series I-1, 5.00%, 07/01/42

    590       633,259  
   

 

 

 
    1,684,746  
Security   Par
(000)
    Value  
Florida — 16.1%  

County of Broward Florida Airport System, ARB, Series A, AMT, 5.00%, 10/01/45

  $ 2,845     $ 3,048,986  

County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT, 5.50%, 10/01/29

    1,735       1,929,251  

County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32

    1,500       1,596,540  

County of Lee Florida HFA, RB, S/F Housing, Multi-County Program, Series A-2, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 6.00%, 09/01/40

    90       90,859  

County of Miami-Dade Florida, RB, Seaport Department:

   

Series A, 5.38%, 10/01/33

    1,015       1,113,648  

Series A, 6.00%, 10/01/38

    1,000       1,123,450  

Series B, AMT, 6.25%, 10/01/38

    460       518,632  

Series B, AMT, 6.00%, 10/01/42

    615       687,957  

County of Miami-Dade Florida Aviation, Refunding ARB, Series A, AMT, 5.00%, 10/01/31

    2,900       3,098,244  

County of Miami-Dade Florida Educational Facilities Authority, RB, University of Miami, Series A, 5.00%, 04/01/40

    3,465       3,738,458  

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 08/01/19(a)

    4,645       4,768,000  

Reedy Creek Florida Improvement District, GO, Series A, 5.25%, 06/01/32

    1,040       1,156,366  

Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/21(a)

    3,995       4,333,456  
   

 

 

 
    27,203,847  
Hawaii — 1.5%  

State of Hawaii Airports System, ARB, Series A, AMT, 5.00%, 07/01/45

    1,500       1,624,290  

State of Hawaii Airports System, COP, AMT:

   

5.25%, 08/01/25

    425       466,208  

5.25%, 08/01/26

    460       502,265  
   

 

 

 
    2,592,763  
Illinois — 15.3%  

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%, 01/01/41

    1,000       1,059,580  

City of Chicago Illinois O’Hare International Airport, GARB:

   

3rd Lien, Series A, 5.75%, 01/01/21(a)

    960       1,032,230  

3rd Lien, Series A, 5.75%, 01/01/39

    185       196,054  

3rd Lien, Series C, 6.50%, 01/01/21(a)

    5,225       5,699,378  

Senior Lien, Series D, AMT, 5.00%, 01/01/42

    430       455,680  

City of Chicago Illinois Transit Authority, RB:

   

Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 12/01/18(a)

    2,000       2,006,700  

Sales Tax Receipts, 5.25%, 12/01/36

    1,000       1,051,250  

Sales Tax Receipts, 5.25%, 12/01/40

    1,790       1,879,607  

City of Chicago Illinois Wastewater Transmission, RB, 2nd Lien, 5.00%, 01/01/42

    2,050       2,127,531  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago:

   

5.50%, 12/01/38

    1,250       1,299,250  

5.25%, 12/01/43

    1,505       1,542,655  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 5.00%, 02/15/41

    555       602,342  

Railsplitter Tobacco Settlement Authority, RB(a):

   

5.50%, 06/01/21

    1,405       1,516,993  

6.00%, 06/01/21

    400       436,868  

State of Illinois, GO:

   

5.25%, 02/01/31

    875       906,132  

5.25%, 02/01/32

    1,355       1,398,739  

5.50%, 07/01/33

    2,000       2,108,960  

5.50%, 07/01/38

    425       444,308  
   

 

 

 
    25,764,257  
 

 

 

SCHEDULES OF INVESTMENTS      51  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Indiana — 3.9%  

Indianapolis Local Public Improvement Bond Bank, RB, Series F, 5.25%, 02/01/36

  $ 3,055     $ 3,225,683  

Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC):

   

5.50%, 01/01/19(a)

    545       548,264  

5.50%, 01/01/38

    2,235       2,247,829  

State of Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 07/01/40

    565       593,205  
   

 

 

 
    6,614,981  
Iowa — 0.7%  

Iowa Finance Authority, RB, Lifespace Communities, Series A, 5.00%, 05/15/48

    1,100       1,123,738  
   

 

 

 
Louisiana — 1.7%  

Lake Charles Louisiana Harbor & Terminal District, RB, Series B, AMT (AGM), 5.50%, 01/01/29

    1,500       1,656,180  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 05/15/29

    1,215       1,234,015  
   

 

 

 
    2,890,195  
Maryland — 2.7%  

County of Howard Maryland Housing Commission, RB, M/F Housing, Woodfield Oxford Square Apartments, 5.00%, 12/01/42

    1,430       1,532,316  

Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/34

    2,700       3,045,789  
   

 

 

 
    4,578,105  
Massachusetts — 1.2%  

Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A:

   

5.00%, 01/01/47

    245       256,689  

5.25%, 01/01/42

    545       582,229  

Massachusetts Development Finance Agency, Refunding RB, Emerson College, Series A, 5.00%, 01/01/40

    595       629,474  

Massachusetts Housing Finance Agency, Refunding RB, Series C, AMT, 5.35%, 12/01/42

    485       487,081  
   

 

 

 
    1,955,473  
Minnesota — 1.1%  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

   

6.50%, 11/15/18(a)

    205       205,344  

6.50%, 11/15/38

    1,120       1,121,882  

County of St. Paul Minnesota Housing & Redevelopment Authority, Refunding RB, Fairview Health Services, Series A, 4.00%, 11/15/43

    575       558,153  
   

 

 

 
    1,885,379  
Mississippi — 2.5%  

Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40

    2,595       3,045,466  

Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 08/01/23(a)

    1,000       1,129,990  
   

 

 

 
    4,175,456  
Montana — 0.3%  

Montana State Board of Housing, RB, S/F, Series B-2:

   

3.38%, 12/01/37

    245       229,369  

3.50%, 12/01/42

    105       96,242  

3.60%, 12/01/47

    165       149,234  
   

 

 

 
    474,845  
Security   Par
(000)
    Value  
Nevada — 4.8%  

City of Carson City Nevada, Refunding RB, Carson Tahoe Regional Healthcare Project, 5.00%, 09/01/42

  $ 340     $ 359,877  

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 07/01/39

    1,410       1,455,303  

County of Clark Nevada, GO, Stadium Improvement, Series A:

   

5.00%, 06/01/36

    1,205       1,357,288  

5.00%, 06/01/37

    3,000       3,371,340  

County of Clark Nevada Water Reclamation District, GO, Series A, 5.25%, 07/01/19(a)

    1,500       1,533,060  
   

 

 

 
    8,076,868  
New Jersey — 11.8%  

New Jersey EDA, RB:

   

Goethals Bridge Replacement Project, AMT (AGM), Private Activity Bond, 5.00%, 01/01/31

    790       853,247  

Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 01/01/43

    3,000       3,209,340  

State Government Buildings Project, Series A, 5.00%, 06/15/47

    2,500       2,571,800  

New Jersey Health Care Facilities Financing Authority, RB, Virtua Health, Series A (AGC), 5.50%, 07/01/38

    2,100       2,147,040  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing, Series BB, AMT, 3.80%, 10/01/32

    1,435       1,376,122  

New Jersey Transportation Trust Fund Authority, RB, Transportation System:

   

Series A (AGC), 5.63%, 12/15/28

    3,170       3,184,265  

Series AA, 5.50%, 06/15/39

    1,890       2,005,139  

Series B, 5.25%, 06/15/36

    1,000       1,041,110  

New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/32

    1,600       1,705,920  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.25%, 06/01/46

    1,390       1,469,244  

Sub-Series B, 5.00%, 06/01/46

    305       308,928  
   

 

 

 
    19,872,155  
New York — 7.4%  

City of New York New York, GO, Sub-Series F-1, 5.00%, 04/01/36

    2,090       2,343,099  

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series EE, 5.38%, 06/15/43

    1,305       1,384,997  

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2009, Series EE, 5.25%, 06/15/40

    3,410       3,469,504  

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:

   

5.75%, 02/15/21(a)

    1,555       1,681,717  

5.75%, 02/15/47

    955       1,021,965  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 166th Series, 5.25%, 07/15/36

    2,000       2,121,960  

TSASC, Inc., Refunding RB, Series A, 5.00%, 06/01/41

    535       547,722  
   

 

 

 
    12,570,964  
Ohio — 1.3%  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 02/15/31

    2,000       2,199,080  
   

 

 

 
Oklahoma — 0.5%  

Oklahoma Development Finance Authority, RB, Provident Oklahoma Education Resources, Inc., Cross Village Student Housing Project, Series A, 5.25%, 08/01/57

    955       878,753  
   

 

 

 
Pennsylvania — 7.2%  

Altoona Area School District, GO, 5.00%, 12/01/36

    110       120,121  

County of Delaware Springfield School District, GO:

   

5.00%, 03/01/40

    865       961,664  

5.00%, 03/01/43

    590       654,446  
 

 

 

52    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Pennsylvania (continued)  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jeferson University, Series A, 5.00%, 09/01/48

  $ 980     $ 1,053,186  

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/36

    1,290       1,420,844  

Northampton County General Purpose Authority, Refunding RB, Lafayette College, 4.00%, 11/01/38

    2,595       2,573,825  

Pennsylvania Housing Finance Agency, RB, S/F, Series 125B, 3.65%, 10/01/42

    1,000       928,910  

Pennsylvania Turnpike Commission, RB, Sub-Series B-1, 5.25%, 06/01/47

    1,170       1,256,826  

Swarthmore Borough Authority, RB, Swarthmore College, 5.00%, 09/15/48

    1,900       2,139,419  

Township of Bristol Pennsylvania School District, GO, 5.25%, 06/01/37

    1,000       1,080,470  
   

 

 

 
    12,189,711  
South Carolina — 6.8%  

County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38

    2,180       2,444,412  

County of Charleston South Carolina Airport District, ARB, Series A, AMT:

   

5.50%, 07/01/38

    1,000       1,097,510  

6.00%, 07/01/38

    1,695       1,896,688  

5.50%, 07/01/41

    1,000       1,096,140  

State of South Carolina Ports Authority, RB, AMT, 5.25%, 07/01/50

    1,095       1,182,962  

State of South Carolina Public Service Authority, RB, Series E, 5.50%, 12/01/53

    1,000       1,054,670  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

    2,500       2,645,125  
   

 

 

 
    11,417,507  
Tennessee — 1.6%  

Metropolitan Nashville Airport Authority, ARB, Series B, AMT, 5.00%, 07/01/40

    2,500       2,679,575  
   

 

 

 
Texas — 12.7%  

City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 03/01/37

    1,360       1,487,976  

City of Houston Texas Airport System Revenue, Refunding RB, Sub-Series D, 5.00%, 07/01/37

    1,175       1,308,210  

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC)(a):

   

6.00%, 05/15/19

    4,000       4,086,656  

Dallas Texas Area Rapid Transit, Refunding RB, Senior Lien(a):

   

5.25%, 12/01/18

    2,600       2,607,143  

Dallas-Fort Worth Texas International Airport, ARB, Joint Improvement, AMT:

   

Series A, 5.00%, 11/01/38

    2,965       3,067,470  

Series H, 5.00%, 11/01/37

    2,200       2,298,230  

Lower Colorado River Authority, Refunding RB, 5.50%, 05/15/33

    1,240       1,383,356  

North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 09/01/21(a)

    3,150       3,422,790  

North Texas Tollway Authority, Refunding RB, 1st Tier-Series A, 5.00%, 01/01/48

    1,060       1,149,061  

Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38

    620       679,105  
   

 

 

 
    21,489,997  
Vermont — 1.0%  

University of Vermont & State Agricultural College, Refunding RB, 5.00%, 10/01/43

    1,470       1,622,160  
   

 

 

 
Security   Par
(000)
    Value  
Virginia — 2.6%  

City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 01/01/43

  $ 570     $ 609,478  

State of Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18(a)

    1,300       1,304,719  

Virginia Small Business Financing Authority, RB, Transform 66 P3 Project, AMT, 5.00%, 12/31/49

    2,330       2,441,607  
   

 

 

 
    4,355,804  
Washington — 9.2%  

City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 02/01/21(a)

    1,375       1,468,912  

Port of Seattle Washington, ARB, Intermediate Lien, Series C, AMT:

   

5.00%, 05/01/37

    1,450       1,578,644  

5.00%, 05/01/42

    385       414,225  

State of Washington, COP, Series B:

   

5.00%, 07/01/36

    1,000       1,114,230  

5.00%, 07/01/37

    3,910       4,329,699  

5.00%, 07/01/38

    650       714,773  

State of Washington, GO:

   

Series C, 5.00%, 02/01/36

    4,300       4,838,145  

Various Purposes, Series B, 5.25%, 02/01/21(a)

    1,075       1,148,423  
   

 

 

 
    15,607,051  
Wisconsin — 0.8%  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Milwaukee Regional Medical Center Thermal Service, 5.00%, 04/01/44(b)

    1,205       1,318,101  
   

 

 

 
Wyoming — 0.2%  

State of Wyoming Municipal Power Agency, Inc., Refunding RB, Series A (BAM), 5.00%, 01/01/42

    330       357,796  
   

 

 

 

Total Municipal Bonds — 139.8%
(Cost — $229,404,336)

 

    235,885,460  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(c)

 

California — 2.9%

 

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    4,500       4,948,492  
   

 

 

 
Colorado — 1.3%  

City & County of Denver Colorado Airport System Revenue, Refunding ARB, Sub-System, Series A, AMT, 5.25%, 12/01/43(d)

    1,901       2,119,966  
   

 

 

 
Connecticut — 1.1%  

State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45

    1,771       1,919,209  
   

 

 

 
Illinois — 1.5%  

City of Chicago Illionis Waterworks, Refunding RB, Water Revenue Project (AGM), 2nd Lien:

   

2017, 5.25%, 11/01/18(a)

    1,662       1,662,432  

2017, 5.25%, 11/01/33

    482       482,458  

5.25%, 11/01/18(a)

    364       364,252  
   

 

 

 
    2,509,142  
Maryland — 1.0%  

City of Baltimore Maryland, RB, Wastewater Project, Series A, 5.00%, 07/01/46

    1,499       1,643,187  
   

 

 

 
Michigan — 2.0%  

State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45

    3,020       3,306,523  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      53  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Nevada — 2.3%  

County of Clark Nevada Water Reclamation District, GO, Series B, 5.50%, 07/01/19(a)

  $ 3,749     $ 3,837,579  
   

 

 

 
New Jersey — 1.1%  

New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29

    1,801       1,812,575  
   

 

 

 
New York — 5.4%  

City of New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 01/15/39

    1,400       1,409,474  

New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

    4,530       4,882,820  

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(d)

    2,660       2,895,369  
   

 

 

 
    9,187,663  
Pennsylvania — 2.9%  

Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/38(d)

    3,650       3,606,237  

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/38

    1,184       1,279,914  
   

 

 

 
    4,886,151  
Utah — 0.6%  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19(a)

    1,005       1,028,643  
   

 

 

 
Security   Par
(000)
    Value  
Virginia — 1.5%  

County of Fairfax Virginia EDA, RB, Metrorail Parking System Project, 5.00%, 04/01/47(d)

  $ 2,320     $ 2,559,215  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 23.6%.
(Cost — $39,426,088)

 

    39,758,345  
   

 

 

 

Total Investments — 163.4%
(Cost — $268,830,424)

 

    275,643,805  

Other Assets Less Liabilities — 1.2%

 

    1,996,566  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (13.0)%

 

    (21,969,820

VMTP Shares at Liquidation Value — (51.6)%

 

    (87,000,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 168,670,551  
   

 

 

 

 

(a) 

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

(b) 

When-issued security.

(c) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(d) 

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between November 15, 2019 to June 1, 2026, is $5,539,532. See Note 4 of the Notes to Financial Statements for details.

 

During the six months ended October 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/18
     Net
Activity
     Shares
Held at
10/31/18
     Value at
10/31/18
     Income      Net
Realized

Gain (Loss) (a)
     Change in
Unrealized

Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     2,822,221        (2,822,221           $      $ 14,894      $ 1,368      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount (000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts:

           

10-Year U.S. Treasury Note

     11        12/19/18      $ 1,303      $ 8,000  

Long U.S. Treasury Bond

     31        12/19/18        4,282        102,392  

5-Year U.S. Treasury Note

     15        12/31/18        1,686        7,309  
           

 

 

 
            $ 117,701  
           

 

 

 

 

 

54    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 117,701      $      $ 117,701  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

 

For the six months ended October 31, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 158,324      $      $ 158,324  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 68,524      $      $ 68,524  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 8,260,777  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments(a)

   $        $ 275,643,805        $        $ 275,643,805  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 117,701        $        $             —        $ 117,701  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 
  (b) 

Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

 

TOB Trust Certificates

   $        $ (21,886,518      $        $ (21,886,518

VMTP Shares at Liquidation Value

              (87,000,000                 (87,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (108,886,518      $             —        $ (108,886,518
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      55  


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Municipal Bonds — 138.4%  

Alabama — 0.8%

 

City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 06/01/19(a)

  $ 4,615     $ 4,721,745  
   

 

 

 
Arizona — 3.5%  

Arizona Board of Regents, RB, University of Arizona, 5.00%, 08/01/28

    2,000       2,128,580  

Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 02/01/30

    2,685       2,845,590  

Arizona Industrial Development Authority, RB, Academies of Math & Science Projects, Series B, 4.25%, 07/01/27(b)

    545       520,061  

City of Phoenix Arizona IDA, RB, Facility, Legacy Traditional Schools Project, Series A, 5.75%, 07/01/24(b)

    750       796,327  

City of Phoenix Arizona IDA, Refunding RB, Downtown Phoenix Student Housing, Series A:

   

5.00%, 07/01/25

    300       330,837  

5.00%, 07/01/29

    175       193,785  

5.00%, 07/01/31

    175       191,695  

City of Tucson Arizona, COP, Refunding, (AGC), 4.00%, 07/01/20

    2,325       2,392,192  

County of Pinal Arizona Electric District No. 3, Refunding RB, 5.00%, 07/01/21(a)

    1,600       1,715,248  

Glendale Union School District No. 205, GO, Series C (BAM):

   

5.00%, 07/01/24

    1,945       2,147,825  

5.00%, 07/01/27

    500       547,765  

Phoenix-Mesa Gateway Airport Authority, RB, Mesa Project, AMT:

   

5.00%, 07/01/27

    700       746,704  

5.00%, 07/01/32

    1,925       2,042,444  

Scottsdale IDA, Refunding RB, Scottsdale Healthcare,
Series C (AGM), 5.00%, 09/01/35

    2,050       2,137,699  

State of Arizona, COP, Department of Administration,
Series A (AGM), 4.25%, 10/01/23

    1,000       1,017,150  
   

 

 

 
      19,753,902  
Arkansas — 0.7%  

City of Benton Arkansas, RB, 5.00%, 06/01/29

    1,055       1,167,221  

University of Arkansas, Refunding RB, 5.00%, 03/01/31

    2,315       2,587,128  
   

 

 

 
      3,754,349  
California — 4.7%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.00%, 08/15/20(a)

    2,135       2,252,169  

California Infrastructure & Economic Development Bank, Refunding RB, 4.00%, 11/01/31

    1,335       1,391,484  

City of San Jose California, Refunding ARB, Series A-1, AMT, 5.00%, 03/01/25

    2,000       2,109,660  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1:

   

5.00%, 06/01/32

    6,715       7,351,179  

5.00%, 06/01/34

    5,785       6,284,650  

State of California, GO:

   

5.50%, 04/01/28

    15       15,046  

Various Purposes, 5.75%, 04/01/31

    7,000       7,108,640  
   

 

 

 
      26,512,828  
Colorado — 1.5%  

City & County of Denver Colorado Airport System Revenue, Refunding ARB, AMT, Sub-System, Series A, 5.00%, 12/01/32

    5,000       5,591,750  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series B-1, 5.00%, 07/01/38

    270       281,351  
Security  

Par

(000)

    Value  
Colorado (continued)  

Park Creek Metropolitan District, Refunding, Tax Allocation Bonds, 5.00%, 12/01/34

  $ 500     $ 543,720  

University of Northern Colorado, Refunding RB, Series A, 5.00%, 06/01/31

    2,000       2,205,160  
   

 

 

 
      8,621,981  
Connecticut — 2.6%  

Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F,
5.00%, 07/01/21(a)

    4,530       4,844,155  

State of Connecticut, GO, Series A:

   

5.00%, 04/15/30

    5,000       5,506,050  

5.00%, 04/15/31

    4,000       4,384,800  
   

 

 

 
      14,735,005  
Delaware — 0.8%  

County of Kent Delaware, RB, CHF-Dover, LLC-Delaware State University Project, Series A:

   

5.00%, 07/01/29

    880       951,826  

5.00%, 07/01/30

    1,030       1,108,321  

5.00%, 07/01/31

    750       804,052  

5.00%, 07/01/32

    375       400,545  

5.00%, 07/01/33

    1,190       1,266,386  
   

 

 

 
      4,531,130  
Florida — 6.0%  

Capital Region Community Development District, Refunding, Special Assessment Bonds, Series A-1:

   

4.13%, 05/01/23

    500       495,145  

4.63%, 05/01/28

    500       489,845  

County of Broward Florida School Board, COP, Refunding, Series A (AGM), 5.00%, 07/01/21(a)

    10,000       10,733,800  

County of Lee Florida, Refunding ARB, Series A, AMT (AGM), 5.00%, 10/01/27

    1,635       1,739,280  

County of Lee Florida, Refunding RB, Series A, AMT, 5.50%, 10/01/23

    1,000       1,079,090  

County of Miami-Dade Florida, RB, AMT, Series B:

   

6.00%, 10/01/28

    3,470       3,916,866  

6.00%, 10/01/29

    3,480       3,924,779  

County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, Series A, 5.00%, 04/01/32

    5,020       5,521,749  

County of Miami-Dade Florida Transit System Sales Surtax Revenue, Refunding RB, 5.00%, 07/01/32

    1,500       1,620,075  

Lakewood Ranch Stewardship District, Special Assessment Bonds:

   

Del Webb Project, 3.65%, 05/01/22(b)

    525       523,462  

Del Webb Project, 4.30%, 05/01/27(b)

    520       514,166  

Lakewood National and Polo Run Projects,
4.00%, 05/01/22

    1,230       1,235,990  

Midtown Miami Community Development District, Refunding, Special Assessment Bonds, Series A, 4.25%, 05/01/24

    1,300       1,329,367  

Sarasota County Health Facilities Authority, RB, Sunnyside Village Project, 5.00%, 05/15/33

    600       650,142  

Sterling Hill Community Development District, Refunding, Special Assessment Bonds, Series B, 5.50%, 11/01/10(c)(d)

    143       91,229  
   

 

 

 
      33,864,985  
Georgia — 2.8%  

City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/32

    10,315       11,498,853  

County of Cobb Kennestone Hospital Authority, Refunding RB, Revenue Anticipation Certificates, 5.00%, 04/01/32

    1,250       1,379,850  

Main Street Natural Gas Inc, RB, Series A,
5.50%, 09/15/28

    2,500       2,900,525  
   

 

 

 
      15,779,228  
 

 

 

56    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Hawaii — 0.9%  

State of Hawaii Airports System, Refunding ARB, Series A, 5.25%, 07/01/29

  $ 5,000     $ 5,249,350  
   

 

 

 
Idaho — 1.3%  

Idaho Health Facilities Authority, Refunding RB, St. Lukes Health Syatem, Series A:

   

5.00%, 03/01/32

    4,100       4,525,047  

5.00%, 03/01/33

    2,410       2,649,434  
   

 

 

 
      7,174,481  
Illinois — 15.1%  

Chicago Board of Education, GO, Refunding Dedicated Revenues, Series D, 5.00%, 12/01/26

    4,185       4,322,435  

City of Chicago Illinois Midway International Airport, Refunding ARB, 2nd Lien, Series A, AMT:

   

5.00%, 01/01/32

    5,000       5,336,650  

5.50%, 01/01/32

    1,500       1,638,315  

City of Chicago Illinois O’Hare International Airport, Refunding GARB, AMT, Series C:

   

5.25%, 01/01/28

    1,350       1,467,464  

5.25%, 01/01/29

    3,020       3,276,609  

City of Chicago Illinois O’Hare International Airport, RB, Refunding GARB, 5.00%, 01/01/32

    3,745       4,079,878  

City of Chicago Illinois O’Hare International Airport, Refunding GARB, Senior Lien, Series A, AMT, 5.00%, 01/01/23

    13,000       14,084,330  

City of Chicago Illinois Transit Authority, RB,
5.25%, 12/01/31

    3,700       3,916,265  

Cook County Community College District No. 508, GO, City College of Chicago, 5.13%, 12/01/38

    1,000       1,022,600  

Illinois Finance Authority, Refunding RB, CHF-Chicago, LLC-University Of Illinois at Chicago:

   

5.00%, 02/15/28

    810       887,695  

5.00%, 02/15/29

    400       436,172  

5.00%, 02/15/30

    500       542,490  

5.00%, 02/15/31

    500       540,170  

5.00%, 02/15/32

    500       537,855  

Madison-Macoupin Etc. Counties Community College District No. 536, GO, Refunding, Lewis & Clark Community College:

   

5.00%, 05/01/30

    475       490,571  

5.00%, 05/01/31

    500       516,315  

5.00%, 05/01/32

    500       515,720  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project, 5.00%, 12/15/28

    1,200       1,300,428  

Railsplitter Tobacco Settlement Authority, RB,
5.50%, 06/01/21(a)

    3,500       3,778,985  

State of Illinois, GO:

   

5.25%, 02/01/30

    5,000       5,192,100  

5.00%, 04/01/31

    1,000       1,017,980  

5.00%, 05/01/31

    10,010       10,187,978  

State of Illinois, GO, Refunding, Series B, 5.00%, 10/01/27

    470       487,780  

State of Illinois, GO, Series D, 5.00%, 11/01/28

    1,645       1,694,251  

State of Illinois Finance Authority, Refunding RB, Southern Illinois Healthcare Enterprises, Inc.:

   

5.00%, 03/01/30

    550       605,385  

5.00%, 03/01/32

    920       1,003,645  

State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 01/01/34

    9,140       9,872,480  

State of Illinois Toll Highway Authority, Refunding RB, Senior Series A, 5.00%, 12/01/31

    5,220       5,774,834  
   

 

 

 
      84,527,380  
Indiana — 4.1%  

City of Whiting Indiana, RB, BP Products North America, Inc. Project, 5.25%, 01/01/21

    4,800       5,078,256  
Security  

Par

(000)

    Value  
Indiana (continued)  

County of Jasper Indiana, Refunding RB, Northern Indiana Public Service Co., Series C (NPFGC), 5.85%, 04/01/19

  $ 2,000     $ 2,029,020  

Indiana Finance Authority, RB, Wastewater, 1st Lien, Series A, 5.25%, 10/01/31

    10,000       10,773,800  

Indiana Finance Authority, Refunding RB, US Steel Corp. Project, 6.00%, 12/01/19

    5,000       5,115,200  
   

 

 

 
      22,996,276  
Iowa — 1.2%  

Iowa Higher Education Loan Authority, RB, Private College Facility:

   

5.25%, 04/01/23

    695       741,002  

5.25%, 04/01/24

    730       778,319  

5.25%, 04/01/25

    520       554,419  

5.25%, 04/01/26

    360       383,652  

Iowa Higher Education Loan Authority, Refunding RB, Private College Facility:

   

5.00%, 09/01/20(a)

    2,315       2,430,171  

Upper Iowa University Project, 5.00%, 09/01/20(e)

    800       828,392  

Iowa Student Loan Liquidity Corp., Refunding RB, AMT, Series A, 5.00%, 12/01/26

    775       850,469  
   

 

 

 
      6,566,424  
Kansas — 1.4%  

County of Seward Unified School District No. 480 Liberal, GO, Refunding:

   

5.00%, 09/01/22(a)

    1,005       1,092,365  

5.00%, 09/01/22(a)

    3,990       4,382,736  

5.00%, 09/01/33

    1,005       1,092,365  

Kansas Development Finance Authority, Refunding RB, Health Hospital Nursing Home Improvements:

   

5.00%, 11/15/19(a)

    35       35,994  

5.00%, 11/15/23

    1,465       1,502,064  
   

 

 

 
      8,105,524  
Kentucky — 0.5%  

Countyof Louisville/Jefferson Metropolitan Government, Refunding RB, Catholic Health Initiatives:

   

5.00%, 12/01/35

    120       124,816  

Series A, 5.00%, 12/01/31

    2,750       2,877,242  
   

 

 

 
      3,002,058  
Louisiana — 3.4%  

City of Bossier City Louisiana Utilities, Refunding RB, 5.00%, 10/01/32

    2,000       2,242,860  

City of New Orleans Louisiana Aviation Board, Refunding GARB, Restructuring, Series A-2 (AGC),
6.00%, 01/01/19(a)

    850       855,500  

Louisiana Local Government Environmental Facilities & Community Development Authority, Refunding RB, BRCC Facilities Corp. Project:

   

5.00%, 12/01/27

    3,445       3,685,013  

5.00%, 12/01/28

    3,715       3,973,824  

New Orleans Aviation Board, RB, Series A, 5.00%, 01/01/33

    1,000       1,079,590  

State of Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, 4.00%, 05/01/34

    3,000       3,079,800  

Terrebonne Levee & Conservation District, RB, Sales Tax, 5.00%, 07/01/28

    3,660       4,007,956  
   

 

 

 
      18,924,543  
Maine — 0.4%  

Portland Housing Development Corp., Refunding RB, Senior Living, Retirement Facilities, Series A, 6.00%, 02/01/34

    1,965       1,967,240  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      57  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Maryland — 1.7%  

City of Rockville Maryland, RB, Ingleside King Farm Project, 3.50%, 11/01/26

  $ 1,825     $ 1,780,160  

Maryland Economic Development Corp., RB, Transportation Facilities Project, Series A, 5.13%, 06/01/20(e)

    1,020       1,056,394  

Maryland Economic Development Corp., Refunding RB, Transportation Facilities Project, Series A:

   

5.00%, 06/01/29

    1,835       2,046,282  

5.00%, 06/01/30

    1,015       1,124,914  

5.00%, 06/01/31

    1,000       1,103,190  

5.00%, 06/01/32

    1,000       1,095,580  

Maryland Health & Higher Educational Facilities Authority, RB, Johns Hopkins Health System, Series B,
5.00%, 07/01/33

    1,140       1,238,735  
   

 

 

 
      9,445,255  
Massachusetts — 1.7%  

Massachusetts Development Finance Agency, Refunding RB:

   

Emerson College Issue, Series A, 5.00%, 01/01/31

    1,730       1,842,069  

Suffolk University, 5.00%, 07/01/29

    2,700       2,981,178  

Suffolk University, 5.00%, 07/01/30

    3,125       3,430,938  

Massachusetts Health & Educational Facilities Authority, Refunding RB, Winchester Hospital, 5.00%, 07/01/25

    1,060       1,101,658  
   

 

 

 
      9,355,843  
Michigan — 2.3%  

Manistee Area Public Schools, GO, Refunding, (Q-SBLF), 5.00%, 05/01/25

    1,000       1,066,170  

Michigan Finance Authority, Refunding RB, Senior Lien, Detroit Water and Sewer, Series C-3 (AGM),
5.00%, 07/01/31

    4,000       4,370,120  

Michigan State Building Authority, Refunding RB, Facilities Program, Series II-A, 5.00%, 10/15/24

    2,500       2,681,225  

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.25%, 11/15/19(a)

    4,900       5,059,397  
   

 

 

 
      13,176,912  
Minnesota — 2.1%  

City of Minneapolis, RB, YMCA of the Greater Twin Cities Project:

   

4.00%, 06/01/30

    150       154,146  

4.00%, 06/01/31

    50       51,082  

City of Minneapolis, Refunding RB, Fairview Health Services, Series A, 5.00%, 11/15/33

    2,370       2,632,596  

County of St. Paul Minnesota Housing & Redevelopment Authority, RB, Great River School Project, Series A,
4.75%, 07/01/29(b)

    250       247,102  

Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A(f):

   

5.00%, 02/15/33

    1,000       1,093,920  

5.00%, 02/15/34

    1,185       1,286,626  

University of Minnesota, RB, Biomedical Science Research Facilities Funding Program:

   

Series B, 5.00%, 08/01/36

    1,000       1,065,660  

Series C, 5.00%, 08/01/27

    1,390       1,538,021  

Series C, 5.00%, 08/01/28

    740       818,107  

Series C, 5.00%, 08/01/29

    1,555       1,716,938  

Series C, 5.00%, 08/01/30

    835       920,779  
   

 

 

 
      11,524,977  
Missouri — 0.3%  

City of St. Louis Missouri IDA, Refunding RB, Ballpark Village Development Project, Series A, 3.88%, 11/15/29

    370       368,187  

St. Louis County Industrial Development Authority, Refunding RB, Friendship Village St. Louis Obligated Group:

   

5.00%, 09/01/27

    360       375,912  

5.00%, 09/01/32

    1,015       1,039,685  
   

 

 

 
      1,783,784  
Security  

Par

(000)

    Value  
Montana — 0.1%  

County of Yellowstone Montana School District No. 2 Billings, GO, 5.00%, 06/15/30

  $ 500     $ 552,160  
   

 

 

 
Nebraska — 0.9%  

County of Douglas Nebraska Hospital Authority No. 3, Refunding RB, 5.00%, 11/01/30

    800       879,632  

County of Lancaster Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group,
5.50%, 01/01/30

    1,000       1,032,060  

Nebraska Public Power District, Refunding RB, Series A:

   

5.00%, 01/01/30

    1,000       1,071,150  

5.00%, 01/01/32

    2,000       2,136,020  
   

 

 

 
      5,118,862  
Nevada — 1.7%  

County of Clark Nevada Department of Aviation, Refunding RB, 5.00%, 07/01/33

    5,000       5,457,200  

County of Humboldt Nevada, Refunding RB, Idaho Power Co. Project, 5.15%, 12/01/24

    3,800       3,887,058  
   

 

 

 
      9,344,258  
New Hampshire — 0.3%  

New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project, Series A, AMT, 4.00%, 11/01/27(b)

    795       784,943  

New Hampshire Health & Education Facilities Authority Act, Refunding RB, Dartmouth-Hitchcock Obligated Group, Series A:

   

5.00%, 08/01/31

    640       714,176  

5.00%, 08/01/32

    365       405,176  
   

 

 

 
      1,904,295  
New Jersey — 26.6%  

County of Essex New Jersey Improvement Authority, LRB, Newark Project, Series A (AGM), 5.00%, 11/01/20

    1,364       1,399,873  

New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23

    6,040       6,438,882  

New Jersey EDA, RB, Goethals Bridge Replacement Project, Private Activity Bond AMT:

   

5.50%, 01/01/26

    1,500       1,667,475  

5.50%, 01/01/27

    1,000       1,107,120  

New Jersey EDA, Refunding ARB, Port Newark Container Terminal LLC Project, AMT:

   

5.00%, 10/01/26

    2,135       2,322,325  

5.00%, 10/01/27

    1,680       1,827,202  

New Jersey EDA, Refunding RB:

   

New Jersey American Water Co., Series E, AMT, 4.70%, 12/01/25

    3,000       3,100,830  

School Facilities Construction, Series AA, 4.25%, 12/15/24

    3,850       3,872,830  

School Facilities Construction, Series EE, 5.00%, 09/01/23

    3,465       3,618,153  

New Jersey Educational Facilities Authority, RB, Higher Education Facilities Trust Fund, 5.00%, 06/15/28

    10,000       10,622,500  

New Jersey Educational Facilities Authority, Refunding RB, 5.00%, 07/01/30

    5,000       5,495,100  

New Jersey Higher Education Student Assistance Authority, Refunding RB:

   

AMT, Series B, 5.00%, 12/01/27

    1,000       1,114,150  

AMT, Series B, 5.00%, 12/01/28

    1,000       1,110,000  

Series 1, AMT, 5.50%, 12/01/26

    835       875,372  

Student Loan, Series 1A, 4.75%, 12/01/21

    1,160       1,184,256  

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/32

    12,000       13,227,360  
 

 

 

58    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
New Jersey (continued)  

New Jersey State Turnpike Authority, Refunding RB,
Series B, 5.00%, 01/01/29

  $ 10,000     $ 10,858,600  

New Jersey Transportation Trust Fund Authority, RB:

   

Federal Highway Reimbursement Revenue Notes,
Series A, 5.00%, 06/15/30

    2,000       2,173,940  

Series B, 5.25%, 06/15/26

    3,500       3,685,990  

Transportation Program, Series AA, 5.25%, 06/15/31

    12,000       12,766,920  

Transportation Program, Series AA, 5.25%, 06/15/32

    2,250       2,412,045  

Transportation System, Series A, 5.25%, 06/15/24

    3,185       3,366,609  

Transportation System, Series B, 5.50%, 06/15/31

    13,970       14,698,675  

Transportation System, Series C, 5.25%, 06/15/32

    10,000       10,672,100  

New Jersey Transportation Trust Fund Authority, Refunding RB, Series A:

   

Federal Highway Reimbursement Revenue Notes, 5.00%, 06/15/30

    1,695       1,842,414  

Transportation System, 5.00%, 12/15/33

    2,285       2,426,579  

Newark Housing Authority, RB, Series A:

   

5.00%, 12/01/23

    1,230       1,359,839  

5.00%, 12/01/25

    1,345       1,488,901  

South Jersey Port Corp., ARB, Sobordinated Marine Terminal, Series B, AMT:

   

5.00%, 01/01/29

    250       272,010  

5.00%, 01/01/30

    200       216,804  

5.00%, 01/01/31

    350       378,007  

5.00%, 01/01/32

    425       456,977  

South Jersey Port Corp., RB, Marine Terminal, Series O-1 (AGC), 4.63%, 01/01/19(a)

    1,375       1,381,284  

State of New Jersey, GO, Various Purposes,
5.00%, 06/01/28

    5,000       5,586,700  

Tobacco Settlement Financing Corp., Refunding RB, Series A:

   

5.00%, 06/01/30

    850       936,266  

5.00%, 06/01/32

    11,980       13,074,732  

Tobacco Settlement Bonds, 5.00%, 06/01/33

    220       239,184  
   

 

 

 
      149,278,004  
New Mexico — 1.2%  

Albuquerque Municipal School District No. 12, GO,
Series 2017, 5.00%, 08/01/30

    1,250       1,426,262  

County of Albuquerque Bernalillo New Mexico Water Utility Authority, Refunding RB, 4.00%, 07/01/33

    2,510       2,591,475  

New Mexico Hospital Equipment Loan Council, Refunding RB, 5.00%, 08/01/31

    2,500       2,767,825  
   

 

 

 
      6,785,562  
New York — 12.3%  

Build NYC Resource Corp., RB, Inwood Academy for Leadership Charter School Project, Series A,
4.88%, 05/01/31(b)

    450       448,956  

City of New York, GO, Refunding, Series A,
5.00%, 08/01/29

    6,125       6,891,850  

City of New York, GO, Sub-Series I-1, 5.50%, 04/01/19(a)

    5,000       5,076,650  

City of New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.00%, 01/15/23

    3,560       3,583,033  

Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, The Charter School for Applied Technologies Project, Series A:

   

4.00%, 06/01/22

    800       822,568  

4.50%, 06/01/27

    1,710       1,816,208  

5.00%, 06/01/35

    415       439,805  

County of Monroe New York Industrial Development Corp., Refunding RB, Series A, 5.00%, 07/01/23(a)

    5,695       6,392,637  
Security  

Par

(000)

    Value  
New York (continued)  

County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien, Remarketing, Series A:

   

5.00%, 11/01/24

  $ 5,470     $ 5,776,539  

5.00%, 11/01/30

    655       686,912  

Long Island Power Authority, Refunding RB, Electric System, Series A, 5.50%, 04/01/19(a)

    1,000       1,015,120  

Metropolitan Transportation Authority, RB(a):

   

Sub-Series B-1, 5.00%, 11/15/21

    2,300       2,495,891  

Sub-Series B-4, 5.00%, 11/15/21

    1,500       1,627,755  

New York City Trust for Cultural Resources, Refunding RB, Carnegie Hall, Series A, 5.00%, 12/01/29

    2,750       2,830,245  

New York State Dormitory Authority, RB, Series A:

   

North Shore-Long Island Jewish Health System, 5.50%, 05/01/19(a)

    1,495       1,522,478  

State University Dormitory Facilities, 5.00%, 07/01/33

    1,440       1,632,168  

New York State Dormitory Authority, Refunding RB:

   

4.25%, 09/01/19(a)

    480       489,038  

5.00%, 07/01/30

    1,555       1,753,527  

Niagara Area Development Corp., Refunding RB, Covanta Project, Series B, 3.50%, 11/01/24(b)

    1,000       990,920  

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, Series 8, 5.00%, 12/01/20

    1,690       1,740,987  

State of New York Dormitory Authority, RB:

   

Fordham University, Series A, 5.25%, 07/01/21(a)

    900       974,025  

Icahn School of Medicine at Mount Sinai, Series A,
5.00%, 07/01/32

    9,000       9,908,190  

Mental Health Services (AGM), 5.00%, 02/15/22

    325       325,504  

New York University Hospitals Center, Series A, 5.00%, 07/01/20(a)

    1,725       1,807,489  

New York University Hospitals Center, Series A, 5.13%, 07/01/20(a)

    1,670       1,753,250  

State of New York Dormitory Authority, Refunding RB:

   

North Shore-Long Island Jewish Obligated Group,
Series A, 5.00%, 05/01/32

    3,060       3,350,731  

Orange Regional Medical Center, 5.00%, 12/01/27(b)

    900       997,884  

Orange Regional Medical Center,
5.00%, 12/01/28(b)

    1,800       1,984,554  
   

 

 

 
      69,134,914  
North Carolina — 0.3%  

North Carolina Medical Care Commission, Refunding RB, WakeMed, Series A, 5.00%, 10/01/31

    1,500       1,620,915  
   

 

 

 
Ohio — 1.2%  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 02/15/31

    6,000       6,597,240  
   

 

 

 
Oklahoma — 1.6%  

Norman Regional Hospital Authority, Refunding RB, 5.00%, 09/01/28

    1,575       1,746,895  

Oklahoma City Public Property Authority, Refunding RB:

   

5.00%, 10/01/27

    1,190       1,344,712  

5.00%, 10/01/28

    1,265       1,426,933  

5.00%, 10/01/29

    1,400       1,573,628  

Oklahoma Development Finance Authority, RB, OU Medicene Project, Series B:

   

5.00%, 08/15/29

    1,200       1,328,076  

5.00%, 08/15/33

    1,305       1,408,643  
   

 

 

 
      8,828,887  
Oregon — 1.5%  

County of Klamath Oregon School District, GO:

   

5.00%, 06/15/30

    1,000       1,101,510  

5.00%, 06/15/31

    1,000       1,100,140  
 

 

 

SCHEDULES OF INVESTMENTS      59  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Oregon (continued)  

County of Umatilla Oregon School District No. 16R Pendleton, GO, Series A, 5.00%, 06/15/32

  $ 2,000     $ 2,218,480  

Oregon State Facilities Authority, Refunding RB, Reed College Project, Series A, 5.00%, 07/01/20(a)

    1,835       1,921,832  

State of Oregon, GO, Series H, 5.00%, 05/01/36

    2,000       2,155,300  
   

 

 

 
      8,497,262  
Pennsylvania — 7.3%  

Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project(b):

   

5.00%, 05/01/22

    2,000       2,094,580  

5.00%, 05/01/23

    640       674,720  

5.00%, 05/01/28

    835       897,709  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

   

5.00%, 06/01/33

    2,000       2,196,220  

5.00%, 06/01/34

    3,750       4,105,275  

County of Allegheny Pennsylvania, GO, Refunding, Series C-68, 5.00%, 11/01/25

    2,515       2,693,967  

County of Allegheny Pennsylvania, GO, Series C-67:

   

5.00%, 11/01/25

    2,700       2,892,132  

5.00%, 11/01/26

    2,375       2,541,868  

Pennsylvania Economic Development Financing Authority, RB, PA Bridges Finco LP, AMT, 5.00%, 12/31/28

    115       125,289  

Pennsylvania Turnpike Commission, RB, Sub-Series B, 5.25%, 12/01/21(a)

    4,000       4,363,880  

Pennsylvania Turnpike Commission, Refunding RB:

   

Second Series, 5.00%, 12/01/30

    2,620       2,870,000  

Sub-Series B, 5.00%, 06/01/32

    5,000       5,431,850  

School District of Philadelphia, GOL, Series A:

   

5.00%, 09/01/30

    1,200       1,327,524  

5.00%, 09/01/31

    1,000       1,101,940  

5.00%, 09/01/32

    1,200       1,318,176  

South Fork Municipal Authority, Refunding RB, Conemaugh Valley Memorial Hospital, Series A (AGC), 6.00%, 07/01/20(a)

    6,225       6,599,683  
   

 

 

 
      41,234,813  
Rhode Island — 1.3%  

Providence Redevelopment Agency, Refunding RB, Series A, 5.00%, 04/01/29

    1,000       1,063,610  

Rhode Island Health & Educational Building Corp., RB, City of Newport Issue Financing Program, Series C, 5.00%, 05/15/30

    2,305       2,490,714  

Rhode Island Health & Educational Building Corp., Refunding RB, 5.00%, 09/01/32

    2,000       2,197,440  

Rhode Island Student Loan Authority, Refunding RB, Senior Series A, AMT:

   

5.00%, 12/01/24

    750       816,690  

5.00%, 12/01/25

    850       930,996  
   

 

 

 
      7,499,450  
South Carolina — 2.5%  

South Carolina Jobs-Economic Development Authority, Refunding RB, The Woodlands at Furman, 4.00%, 11/15/27

    905       890,158  

South Carolina Public Service Authority, Refunding RB, Series A:

   

5.00%, 12/01/30

    5,500       5,961,175  

5.00%, 12/01/31

    5,660       6,099,669  

5.00%, 12/01/32

    200       214,584  

5.00%, 12/01/33

    800       855,080  
   

 

 

 
      14,020,666  
Security  

Par

(000)

    Value  
South Dakota — 0.2%  

South Dakota Health & Educational Facilities Authority, Refunding RB, Regional Health, 5.00%, 09/01/20(a)

  $ 1,000     $ 1,050,680  
   

 

 

 
Tennessee — 2.0%  

County of Memphis-Shelby Industrial Development Board, Refunding, Tax Allocation Bonds, Graceland Project, Series A, 4.75%, 07/01/27

    220       227,568  

County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project:

   

Series A, 5.00%, 11/01/23

    2,695       2,769,840  

Series B, 5.00%, 11/01/22

    1,000       1,027,670  

Knox County Health Educational & Housing Facility Board Tennessee, Refunding RB, Eastowne Village Project, 4.00%, 06/01/31(g)

    2,965       3,020,861  

Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/35

    4,000       4,341,280  
   

 

 

 
      11,387,219  
Texas — 12.0%  

City of Austin Texas Water & Wastewater System Revenue, Refunding RB, 5.00%, 11/15/30

    6,000       6,800,820  

City of Grapevine Texas, GO, 5.00%, 02/15/33

    5,685       6,198,583  

City of Houston Texas, Refunding ARB, Subordinate Lien, Series A, AMT:

   

5.00%, 07/01/25

    1,500       1,592,415  

5.00%, 07/01/32

    1,010       1,076,296  

City of Houston TX Airport System Revenue, Refunding ARB, Sub-Series A, AMT:

   

5.00%, 07/01/31

    1,430       1,583,496  

5.00%, 07/01/32

    1,115       1,229,912  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/33

    8,485       9,328,918  

Dallas-Fort Worth International Airport, ARB, Joint Improvement, Series D, AMT, 5.00%, 11/01/38

    8,290       8,648,128  

Dallas/Fort Worth Texas International Airport, Refunding RB, AMT:

   

Series E, 5.00%, 11/01/26

    2,185       2,279,480  

Series E, 5.00%, 11/01/27

    4,960       5,171,495  

Series F, 5.00%, 11/01/31

    6,345       6,587,950  

Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, AMT, 5.00%, 11/01/28

    1,000       1,064,330  

Mission Economic Development Corp., Refunding RB, Senior Lien, Natural Gasoline Project, AMT,
4.63%, 10/01/31(b)(f)

    1,475       1,469,970  

New Hope Cultural Education Facilities Finance Corp., RB, Jubilee Academic Center Project, Series A(b):

   

3.63%, 08/15/22

    105       103,806  

4.25%, 08/15/27

    160       156,546  

Red River Education Financing Corp., RB, 5.00%, 03/15/33

    1,340       1,451,796  

San Jacinto River Authority, RB, Special Project (AGM), 5.25%, 10/01/25

    2,910       2,993,284  

Socorro Independent School District, GO, Refunding(PSF-GTD):

   

5.00%, 08/15/20(a)

    2,410       2,531,826  

5.00%, 08/15/32

    90       94,290  

Via Metropolitan Transit Authority, Refunding RB:

   

5.25%, 08/01/28

    1,585       1,752,709  

5.25%, 08/01/29

    1,720       1,899,585  

5.25%, 08/01/33

    3,000       3,311,820  
   

 

 

 
      67,327,455  
 

 

 

60    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
U.S. Virgin Islands — 0.9%  

Virgin Islands Public Finance Authority, Refunding RB, Series A (AGM), 5.25%, 10/01/24

  $ 5,000     $ 5,265,150  
   

 

 

 
Utah — 1.0%  

Salt Lake City Corp. Airport Revenue, ARB, AMT, Series A, 5.00%, 07/01/33

    3,500       3,878,700  

Utah Charter School Finance Authority, Refunding RB, Freedom Academy Foundation Project,
4.50%, 06/15/27(b)

    1,500       1,460,205  
   

 

 

 
      5,338,905  
Vermont — 1.0%  

University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/30

    5,565       5,739,351  
   

 

 

 
Washington — 0.3%  

Washington State Housing Finance Commission, Refunding RB, Horizone House Project, 5.00%, 01/01/27(b)

    1,355       1,473,102  
   

 

 

 
West Virginia — 1.0%  

West Virginia Hospital Finance Authority, Refunding RB, Charleston Area Medical Center, Inc., Series A, 5.13%, 09/01/23

    4,000       4,076,320  

West Virginia University, RB, West Virginia University Project, Series B, 5.00%, 10/01/30

    1,500       1,598,625  
   

 

 

 
      5,674,945  
Wisconsin — 1.4%  

Public Finance Authority, Refunding RB, AMT:

   

National Gypsum Co., 5.25%, 04/01/30

    2,410       2,520,836  

Wisconsin Airport Facilities, Senior Obligated Group, Series B, 5.25%, 07/01/28

    4,765       5,060,954  
   

 

 

 
      7,581,790  

Total Municipal Bonds — 138.4%
(Cost — $761,890,099)

 

    777,331,085  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(h)

 

California — 4.0%

 

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Subordinate, 4.00%, 04/01/31(i)

    8,080       8,504,543  

State of California, GO, Refunding Water Utility Authority, 5.00%, 10/01/35

    12,500       14,000,482  
   

 

 

 
      22,505,025  
Iowa — 1.3%  

Iowa Finance Authority, Refunding RB, UnityPoint Health, Series C, 4.13%, 02/15/35

    7,500       7,519,050  
   

 

 

 
Massachusetts — 3.5%  

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System:

   

5.00%, 07/01/32

    7,500       8,494,525  

Series L, 5.00%, 07/01/31

    10,175       10,844,963  
   

 

 

 
      19,339,488  
Minnesota — 1.9%  

State of Minnesota, GO, State Various Purposes, Series A, 4.00%, 08/01/20(a)

    10,525       10,866,012  
   

 

 

 
New Jersey — 1.6%  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F, AMT, Series BB:

   

3.65%, 04/01/28

    5,000       4,902,348  

3.70%, 10/01/28

    3,875       3,799,016  
   

 

 

 
      8,701,364  
Security  

Par

(000)

    Value  
New York — 10.9%  

City of New York, GO:

   

Sub-Series 1-I, 5.00%, 03/01/32

  $ 7,009     $ 7,711,422  

Refunding Series E, 5.00%, 08/01/19(a)

    1,017       1,040,280  

Refunding Series E, 5.00%, 08/01/27

    2,489       2,545,162  

Metropolitan Transportation Authority, RB, Sub-Series D-1, 5.00%, 11/15/39

    4,980       5,366,365  

Metropolitan Transportation Authority, Refunding RB, Series B, 5.25%, 11/15/19(a)

    4,001       4,138,453  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Future Tax Secured Subordinate Bonds, SubSeries B-1, 5.00%, 08/01/36

    9,444       10,458,076  

Port Authority of New York & New Jersey, Refunding ARB:

   

178th Series, AMT, 5.00%, 12/01/32

    4,009       4,367,283  

Consolidated, Series 169th, 5.00%, 10/15/26

    5,530       5,895,533  

Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 5.00%, 10/15/31

    5,010       5,598,775  

State of New York Dormitory Authority, Refunding RB, Series E, 5.25%, 03/15/33

    7,000       7,919,870  

State of New York Urban Development Corp., RB, Personal Income Tax, Series A-1, 5.00%, 03/15/32

    5,501       6,001,896  
   

 

 

 
      61,043,115  
Texas — 1.5%  

Pflugerville Independent School District, GO, (PSF-GTD), 5.00%, 02/15/24(a)

    7,500       8,470,150  
   

 

 

 
Washington — 2.9%  

Port of Seattle Washington, ARB, AMT, Series A, 5.00%, 05/01/34

    15,000       16,479,500  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 27.6%
(Cost — $154,519,083)

 

    154,923,704  
 

 

 

 

Total Long-Term Investments — 166.0%
(Cost — $916,409,182)

 

    932,254,789  
 

 

 

 
     Shares         
Short-Term Securities — 0.3%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.45%(j)(k)

    1,637,362       1,637,526  
   

 

 

 

Total Short-Term Securities — 0.3%
(Cost — $1,637,526)

 

    1,637,526  
 

 

 

 

Total Investments — 166.3%
(Cost — $918,046,708)

 

    933,892,315  

Other Assets Less Liabilities — 1.5%

 

    8,353,827  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (16.7)%

 

    (93,696,888

VMTP Shares at Liquidation Value — (51.1)%

 

    (287,100,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 561,449,254  
 

 

 

 

 

(a) 

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

(b) 

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

(c)

Issuer filed for bankruptcy and/or is in default.

(d) 

Non-income producing security.

(e) 

Security is collateralized by municipal bonds or U.S. Treasury obligations.

(f) 

When-issued security.

(g) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

 

 

 

SCHEDULES OF INVESTMENTS      61  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

(h) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(i) 

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expires on April 1, 2025 is $6,226,089. See Note 4 of the Notes to Financial Statements for details.

(j) 

Annualized 7-day yield as of period end.

(k) 

During the six months ended October 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/18
     Net
Activity
     Shares
Held at
10/31/18
     Value at
10/31/18
     Income      Net
Realized
Gain (Loss) (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

            1,637,362        1,637,362      $ 1,637,526      $ 23,415      $ 35      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
      

Expiration

Date

       Notional
Amount
(000)
       Value
Unrealized
Appreciation
(Depreciation)
 

Short Contracts:

                 

10-Year U.S. Treasury Note

     95          12/19/18        $ 11,252        $ 70,285  

Long U.S. Treasury Bond

     45          12/19/18          6,216          115,436  

5-Year U.S. Treasury Note

     76          12/31/18          8,541          39,697  
                 

 

 

 
                  $ 225,418  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period-end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 225,418      $      $ 225,418  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Includes cumulative appreciation (depreciation) on futures contracts if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

 

For the six months ended October 31, 2018, the effect of derivative financial instruments in the Statements of Operations were as follows:

 

      Commodity
Contracts
       Credit
Contracts
       Equity
Contracts
       Foreign
Currency
Exchange
Contracts
       Interest
Rate
Contracts
       Other
Contracts
       Total  

Net Realized Gain (Loss) from:

                                

Futures contracts

   $        $        $        $        $ 506,457        $        $ 506,457  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                                

Futures contracts

   $        $        $        $        $ 36,938        $        $ 36,938  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 35,722,711  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

62    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 932,254,789        $        $ 932,254,789  

Short-Term Securities

     1,637,526                            1,637,526  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,637,526        $ 932,254,789        $        $ 933,892,315  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 225,418        $        $        $ 225,418  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

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

 
  (b)

Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $         —        $ (93,380,641      $         —        $ (93,380,641

VMTP Shares at Liquidation Value

              (287,100,000                 (287,100,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (380,480,641      $        $ (380,480,641
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      63  


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Municipal Bonds — 130.4%  

Alabama — 1.6%

 

County of Jefferson Alabama Sewer Revenue, Refunding RB:

   

Senior Lien, Series A (AGM), 5.00%, 10/01/44

  $ 805     $ 860,537  

Sub-Lien, Series D, 6.00%, 10/01/42

    3,575       4,036,389  
   

 

 

 
    4,896,926  
Alaska — 0.1%  

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A,
4.63%, 06/01/23

    220       220,042  
   

 

 

 
Arizona(a) — 0.5%  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46

    1,685       1,688,067  
   

 

 

 
Arkansas — 0.9%  

University of Arkansas, RB, Various Facilities, Fayetteville Campus, Series A, 5.00%, 11/01/48

    2,500       2,791,675  
   

 

 

 
California — 14.3%  

California Health Facilities Financing Authority, RB:

   

St. Joseph Health System, Series A, 5.75%, 07/01/39

    2,200       2,255,396  

Sutter Health, Series B, 6.00%, 08/15/20(b)

    3,170       3,399,413  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33

    890       971,355  

California Municipal Finance Authority, ARB, Senior Lien-Linxs APM Project, AMT, 4.00%, 12/31/47

    1,475       1,399,436  

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

   

5.25%, 08/15/39

    145       156,055  

5.25%, 08/15/49

    370       396,222  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 02/01/42

    225       241,969  

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45(a)

    4,425       4,555,936  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A(a):

   

5.00%, 12/01/41

    290       295,855  

5.00%, 12/01/46

    455       462,730  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:

   

Senior, 5.00%, 05/15/40

    5,930       6,145,615  

5.25%, 05/15/39

    800       812,712  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40

    360       416,279  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.25%, 06/01/47

    995       1,000,433  

San Marcos Unified School District, GO, CAB, Election of 2010, Series B, 0.00%, 08/01/42(c)

    2,000       731,600  

State of California, GO, Various Purposes:

   

6.50%, 04/01/19(b)

    8,085       8,247,589  

6.00%, 03/01/33

    2,525       2,660,643  

6.50%, 04/01/33

    6,840       6,966,061  

State of California Public Works Board, LRB, Various Capital Projects:

   

Series I, 5.00%, 11/01/38

    775       844,928  

Sub-Series I-1, 6.38%, 11/01/19(b)

    1,185       1,239,427  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 06/01/25

    425       426,054  
   

 

 

 
    43,625,708  
Security   Par
(000)
    Value  
Colorado — 0.3%  

Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33

  $ 1,060     $ 1,063,805  
   

 

 

 
Connecticut — 1.6%  

Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, Series A,
5.00%, 11/15/40

    1,375       1,407,505  

Connecticut State Health & Educational Facility Authority, Refunding RB, Wesleyan University, Series G,
5.00%, 07/01/20(b)

    3,385       3,545,178  
   

 

 

 
    4,952,683  
Delaware — 2.2%  

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

    1,125       1,189,778  

Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 06/01/55

    1,165       1,251,303  

State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45

    4,065       4,217,031  
   

 

 

 
    6,658,112  
District of Columbia — 3.9%  

District of Columbia, Refunding RB:

   

Georgetown University, 5.00%, 04/01/35

    435       480,853  

Georgetown University Issue, 5.00%, 04/01/42

    500       544,350  

Kipp Charter School, Series A, 6.00%, 07/01/23(b)

    240       278,129  

Metropolitan Washington Airports Authority, Refunding ARB, Dulles Toll Road, CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/35(c)

    6,515       3,120,424  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road:

   

1st Senior Lien, Series A, 5.25%, 10/01/44

    1,500       1,535,220  

CAB, 2nd Senior Lien, Series B (AGC),
0.00%, 10/01/33(c)

    6,590       3,488,944  

CAB, 2nd Senior Lien, Series B (AGC),
0.00%, 10/01/34(c)

    4,830       2,435,141  
   

 

 

 
    11,883,061  
Florida — 5.3%  

Celebration Pointe Community Development District, Special Assessment Bonds, County of Alachua Florida(a):

   

5.00%, 05/01/32

    470       485,623  

5.00%, 05/01/48

    1,175       1,175,799  

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45

    1,340       1,403,503  

County of Collier Health Facilities Authority, RB, Moorings, Inc., Series A, 5.00%, 05/01/48

    1,190       1,264,887  

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A-1, 5.38%, 10/01/20(b)

    1,165       1,234,830  

County of Palm Beach Health Facilities Authority, RB, Acts Retirement-Life Communities, Inc., 5.00%, 11/15/45

    4,500       4,765,815  

Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21(b)

    3,015       3,421,331  

Village Community Development District No.10, Special Assessment Bonds, 5.13%, 05/01/43

    2,210       2,382,336  
   

 

 

 
    16,134,124  
Georgia — 1.9%  

City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/40

    600       658,110  

County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation,
4.00%, 08/15/48

    1,825       1,784,467  

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54

    515       574,791  
 

 

 

64    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Georgia (continued)  

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

  $ 130     $ 133,687  

Glynn-Brunswick Memorial Hospital Authority, RB, Southeast Georgia Health System Project, 5.00%, 08/01/47

    2,500       2,645,000  
   

 

 

 
    5,796,055  
Hawaii — 0.5%  

State of Hawaii Harbor System, RB, Series A,
5.25%, 07/01/30

    1,355       1,417,344  
   

 

 

 
Idaho — 0.3%  

Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series A, 5.00%, 12/01/46

    745       799,199  
   

 

 

 
Illinois — 19.4%  

Chicago Board of Education, GO:

   

Dedicated Revenues, Series H, 5.00%, 12/01/36

    450       453,578  

Project, Series C, 5.25%, 12/01/35

    1,465       1,491,619  

Refunding Dedicated Revenues, Series C,
5.00%, 12/01/25

    815       843,941  

Refunding Dedicated Revenues, Series F,
5.00%, 12/01/24

    615       638,462  

Refunding Dedicated Revenues, Series G,
5.00%, 12/01/34

    450       455,220  

City of Chicago Illinois, GO, Project, Series A,
5.00%, 01/01/34

    1,750       1,782,673  

City of Chicago Illinois, GO, Refunding, Project, Series A, 5.25%, 01/01/32

    4,555       4,751,047  

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

    782       786,113  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series C, 6.50%, 01/01/21(b)

    5,865       6,397,483  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

    1,050       1,102,563  

City of Chicago Illinois Waterworks, Refunding RB:

   

2nd Lien (AGM), 5.25%, 11/01/18(b)

    875       875,000  

2nd Lien (AGM), 5.25%, 11/01/33

    260       260,582  

2nd Lien Project, 5.00%, 11/01/42

    915       953,293  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

    805       836,717  

Illinois Finance Authority, RB:

   

Advocate Health Care Network, Series D,
6.50%, 11/01/18(b)

    5,000       5,000,000  

Chicago LLC, University of Illinois at Chicago Project, Series A, 5.00%, 02/15/47

    200       209,992  

Chicago LLC, University of Illinois at Chicago Project, Series A, 5.00%, 02/15/50

    100       104,624  

Illinois Finance Authority, Refunding RB, Central Dupage Health, Series B, 5.50%, 11/01/19(b)

    1,610       1,664,386  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:

   

Series B (AGM), 5.00%, 06/15/50

    4,315       4,425,464  

Series B-2, 5.00%, 06/15/50

    2,500       2,501,025  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    440       475,072  

6.00%, 06/01/21

    1,140       1,245,074  

Regional Transportation Authority, RB:

   

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

    350       367,332  

Series A (NPFGC), 6.70%, 11/01/21

    2,570       2,739,491  

Series C (NPFGC), 7.75%, 06/01/20

    970       1,024,359  

State of Illinois, GO:

   

5.00%, 02/01/39

    1,540       1,549,055  

Series A, 5.00%, 04/01/35

    3,000       3,052,110  

Series A, 5.00%, 04/01/38

    3,490       3,533,939  
Security   Par
(000)
    Value  
Illinois (continued)  

State of Illinois, RB, Build Illinois, Series B,
5.25%, 06/15/19(b)

  $ 630     $ 642,644  

State of Illinois Toll Highway Authority, RB, Series C:

   

Senior, 5.00%, 01/01/36

    2,615       2,841,250  

5.00%, 01/01/37

    2,800       3,034,164  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44

    985       1,048,267  

Village of Hodgkins Illinois, RB, Metropolitan Biosolids Management LLC Project, AMT, 6.00%, 11/01/23

    2,400       2,402,544  
   

 

 

 
    59,489,083  
Indiana — 4.6%  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:

   

6.75%, 01/01/34

    790       902,267  

7.00%, 01/01/44

    1,905       2,186,331  

Indiana Finance Authority, RB, Series A:

   

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

    3,280       3,506,123  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44

    450       471,096  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48

    1,430       1,493,306  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51

    405       426,497  

Sisters of St. Francis Health Services, 5.25%, 11/01/19(b)

    840       866,317  

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A:

   

5.75%, 05/01/19(b)

    2,310       2,353,220  

5.75%, 05/01/31

    485       494,196  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40

    1,270       1,380,007  
   

 

 

 
    14,079,360  
Iowa — 1.5%  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

Series B, 5.25%, 12/01/50(d)

    2,810       2,983,995  

Midwestern Disaster Area, 5.50%, 12/01/22

    10       10,019  

Midwestern Disaster Area, 5.25%, 12/01/25

    460       485,967  

Midwestern Disaster Area, 5.88%, 12/01/26(a)

    410       430,845  

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

    695       715,245  
   

 

 

 
    4,626,071  
Kentucky — 1.1%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45

    995       1,046,113  

Kentucky Economic Development Finance Authority, Refunding RB, Louisville Arena Authority, Inc. (AGM), 5.00%, 12/01/45

    1,235       1,334,084  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 07/01/43(e)

    1,200       1,098,240  
   

 

 

 
    3,478,437  
Louisiana — 3.4%  

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

    3,320       3,559,671  

Louisiana Public Facilities Authority, Refunding RB, Tulane University of Lousiana Project, 4.00%, 12/15/50

    2,000       1,902,660  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

   

5.50%, 05/15/30

    1,020       1,059,545  

5.25%, 05/15/31

    870       916,362  
 

 

 

SCHEDULES OF INVESTMENTS      65  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Louisiana (continued)  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A (continued):

   

5.25%, 05/15/32

  $ 1,110     $ 1,183,193  

5.25%, 05/15/33

    1,205       1,275,782  

5.25%, 05/15/35

    505       534,442  
   

 

 

 
    10,431,655  
Maryland — 0.8%  

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 06/01/20(b)

    435       459,686  

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25

    750       774,375  

Maryland Health & Higher Educational Facilities Authority, RB:

   

Trinity Health Credit Group, Series 2017,
5.00%, 12/01/46

    420       460,786  

University of Maryland Medical System, Series B (NPFGC), 7.00%, 07/01/22(f)

    595       665,746  
   

 

 

 
    2,360,593  
Massachusetts — 1.1%  

Massachusetts Development Finance Agency, Refunding RB, New Bridge Charles, Inc.(a):

   

4.00%, 10/01/32

    215       203,751  

4.13%, 10/01/42

    135       120,004  

5.00%, 10/01/57

    340       345,362  

Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare System, Series J1, 5.00%, 07/01/19(b)

    990       1,010,196  

Massachusetts HFA, Refunding RB, Series F, AMT, 5.70%, 06/01/40

    1,660       1,662,673  
   

 

 

 
    3,341,986  
Michigan — 2.3%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39

    4,425       4,684,216  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:

   

5.50%, 05/15/20(b)

    760       797,316  

5.50%, 05/15/36

    620       644,515  

Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44

    880       930,257  
   

 

 

 
    7,056,304  
Minnesota — 1.0%  

Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A(g):

   

4.25%, 02/15/48

    1,020       973,876  

5.25%, 02/15/53

    2,045       2,181,013  
   

 

 

 
    3,154,889  
Mississippi — 1.5%  

County of Lowndes Mississippi, Refunding RB, Solid Waste Disposal & Pollution Control, Weyerhaeuser Co. Project, Series A, 6.80%, 04/01/22

    3,000       3,359,940  

University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 09/01/19(b)

    1,065       1,095,054  
   

 

 

 
    4,454,994  
Missouri — 2.0%  

Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44

    255       276,343  

State of Missouri Health & Educational Facilities Authority, RB, Kansas City Art Institute, 5.00%, 09/01/48

    2,610       2,776,596  

State of Missouri Health & Educational Facilities Authority, Refunding RB:

   

Mercy Health, Series C, 5.00%, 11/15/47

    2,570       2,785,546  
Security   Par
(000)
    Value  
Missouri (continued)  

State of Missouri Health & Educational Facilities Authority, Refunding RB (continued):

   

St. Louis College of Pharmacy Project,
5.50%, 05/01/43

  $ 245     $ 257,520  
   

 

 

 
    6,096,005  
Nebraska — 0.8%  

Central Plains Nebraska Energy Project, RB, Gas
Project No. 3:

   

5.25%, 09/01/37

    825       893,838  

5.00%, 09/01/42

    1,445       1,552,580  
   

 

 

 
    2,446,418  
New Hampshire(a) — 0.7%  

New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project:

   

Series B, 4.63%, 11/01/42

    1,545       1,496,024  

Series C, AMT, 4.88%, 11/01/42

    805       785,535  
   

 

 

 
    2,281,559  
New Jersey — 6.8%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,675       1,766,488  

5.25%, 11/01/44

    1,525       1,604,163  

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(a)

    1,085       1,088,342  

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29

    1,955       2,094,939  

New Jersey EDA, Refunding ARB, Port Network Container Terminal LLC Project, AMT, 5.00%, 10/01/47

    1,425       1,476,784  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31

    2,240       2,420,835  

New Jersey State Turnpike Authority, RB:

   

Series A, 5.00%, 01/01/43

    740       791,756  

Series E, 5.00%, 01/01/45

    2,615       2,814,132  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.00%, 06/15/44

    445       457,918  

Transportation Program, Series AA, 5.00%, 06/15/44

    825       846,838  

Transportation System, Series A, 5.50%, 06/15/41

    1,635       1,706,515  

Transportation System, Series B, 5.25%, 06/15/36

    2,460       2,561,131  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.25%, 06/01/46

    525       554,930  

Sub-Series B, 5.00%, 06/01/46

    745       754,596  
   

 

 

 
    20,939,367  
New York — 15.5%  

City of New York Transitional Finance Authority, RB, Fiscal 2009, Series S-3, 5.25%, 01/15/39

    6,700       6,746,766  

City of New York Transitional Finance Authority Future Tax Secured, RB, Fiscal 2012, Sub-Series E-1,
5.00%, 02/01/42

    1,960       2,074,111  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A,
6.25%, 06/01/41(a)

    1,800       1,852,164  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45

    1,960       1,885,226  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(b)

    7,595       7,608,215  

6.50%, 11/15/28

    1,810       1,813,113  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    3,585       3,916,075  

New York Counties Tobacco Trust IV, Refunding RB, Tobacco Settlement Pass-Through Bonds, Series A,
5.00%, 06/01/38

    1,910       1,858,774  

New York Liberty Development Corp., RB, World Trade Center Port Authority Consolidated, 5.25%, 12/15/43

    10,735       11,585,105  
 

 

 

66    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

  $ 1,220     $ 1,267,629  

3 World Trade Center Project, Class 1,
5.00%, 11/15/44(a)

    2,860       2,928,726  

3 World Trade Center Project, Class 2,
5.15%, 11/15/34(a)

    340       350,475  

3 World Trade Center Project, Class 2,
5.38%, 11/15/40(a)

    850       875,330  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:

   

6.00%, 12/01/36

    1,165       1,248,857  

6.00%, 12/01/42

    1,250       1,338,387  
   

 

 

 
    47,348,953  
North Carolina — 0.2%  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21(b)

    595       667,138  
   

 

 

 
North Dakota — 0.3%  

County of Cass North Dakota, Refunding RB, Essentia Health Obligated Group, Series B, 5.25%, 02/15/58(g)

    950       999,847  
   

 

 

 
Ohio — 1.5%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2,
5.88%, 06/01/47

    3,230       3,136,298  

County of Franklin Ohio, RB:

   

Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40

    660       706,385  

Trinity Health Credit Group, Series 2017,
5.00%, 12/01/46

    400       429,100  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53

    275       287,328  
   

 

 

 
    4,559,111  
Oklahoma — 1.7%  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.50%, 08/15/57

    1,155       1,236,081  

Oklahoma Turnpike Authority, RB:

   

2nd Series C, 4.00%, 01/01/42

    1,950       1,944,072  

Series A, 4.00%, 01/01/48

    2,050       2,018,655  
   

 

 

 
    5,198,808  
Pennsylvania — 2.7%  

City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB, Series B, AMT, 5.00%, 07/01/47

    445       474,940  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42

    635       667,156  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

   

5.00%, 06/01/33

    100       109,811  

5.00%, 06/01/34

    135       147,790  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A:

   

4.00%, 09/01/49

    555       528,504  

5.00%, 09/01/43

    1,220       1,318,295  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 06/30/42

    850       887,876  

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

    1,890       1,939,972  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT,
5.50%, 11/01/44

  $ 1,035     $ 1,069,641  

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

    1,105       1,183,787  
   

 

 

 
    8,327,772  
Puerto Rico — 1.2%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 05/15/39

    1,855       1,881,341  

5.63%, 05/15/43

    1,770       1,794,090  
   

 

 

 
    3,675,431  
Rhode Island — 2.1%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    820       862,640  

Series B, 4.50%, 06/01/45

    2,645       2,608,578  

Series B, 5.00%, 06/01/50

    2,945       3,019,538  
   

 

 

 
    6,490,756  
South Carolina — 4.8%  

State of South Carolina Ports Authority, ARB:

   

5.25%, 07/01/20(b)

    3,280       3,445,771  

AMT, 5.25%, 07/01/55

    1,295       1,396,658  

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

    6,180       6,547,401  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

    3,165       3,348,728  
   

 

 

 
    14,738,558  
Tennessee — 0.6%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A,
5.25%, 01/01/45

    995       1,046,113  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40

    690       736,527  
   

 

 

 
    1,782,640  
Texas — 9.5%  

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.25%, 01/01/21(b)

    2,140       2,316,422  

City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 07/01/29

    965       1,025,486  

Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 08/15/43

    745       811,633  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 01/01/23(b)

    455       535,471  

County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/18(b)

    2,000       2,008,600  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/48

    4,545       4,835,289  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project, 5.00%, 10/01/49

    1,000       1,039,350  

Fort Bend County Industrial Development Corp., RB, NRG Energy Inc. Project, Series B, 4.75%, 11/01/42

    670       679,983  

North Texas Tollway Authority, Refunding RB, Series A:

   

1st Tier System, 6.25%, 01/01/19(b)

    5,690       5,729,375  

1st Tier System, 6.25%, 01/01/39

    1,310       1,318,345  

5.00%, 01/01/38

    925       997,030  

San Antonio Water System, Refunding RB, Junior Lien, Series A, 5.00%, 05/15/48

    2,470       2,728,090  
 

 

 

SCHEDULES OF INVESTMENTS      67  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:

   

LBJ Infrastructure Group LLC, 7.00%, 06/30/40

  $ 2,000     $ 2,129,260  

NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39

    2,775       2,900,846  
   

 

 

 
    29,055,180  
Utah — 1.6%  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19(b)

    2,780       2,846,192  

City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/48

    875       945,245  

Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/47

    915       980,697  
   

 

 

 
    4,772,134  
Virginia — 2.3%  

Front Royal & Warren County Industrial Development Authority, RB, Valley Health System Obligated Group, 4.00%, 01/01/50

    1,160       1,094,808  

Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A,
5.50%, 07/01/57

    1,095       1,261,659  

Lexington Industrial Development Authority, RB, Kendal st Lexington, Series A, 5.00%, 01/01/48

    820       863,804  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 01/01/32

    1,615       1,713,596  

6.00%, 01/01/37

    1,940       2,110,875  
   

 

 

 
    7,044,742  
Washington — 2.8%  

Port of Seattle Washington, ARB, Intermediate Lien, Series C, AMT, 5.00%, 05/01/42

    1,465       1,576,208  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40

    755       808,341  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45

    2,290       2,476,841  

Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, 6.38%, 10/01/36

    3,700       3,711,211  
   

 

 

 
    8,572,601  
Wisconsin — 3.2%  

State of Wisconsin, Refunding RB, Series A,
6.00%, 05/01/19(b)

    7,100       7,245,195  

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

    2,465       2,527,611  
   

 

 

 
    9,772,806  
 

 

 

 

Total Municipal Bonds — 130.4%
(Cost — $385,210,404)

 

    399,169,999  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(h)

 

California — 6.8%

 

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area:

   

Toll Bridge, 4.00%, 04/01/42(i)

    3,057       3,080,430  

Series F-1, 5.63%, 04/01/19(b)

    3,271       3,324,388  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19(b)

    9,480       9,781,685  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    3,075       3,381,470  
Security   Par
(000)
    Value  
California (continued)  

San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(b)

  $ 1,077     $ 1,104,769  
   

 

 

 
    20,672,742  
Colorado — 1.5%  

City & County of Denver Colorado Airport System Revenue, Refunding ARB, Subordinate System, Series A, AMT, 5.25%, 12/01/48(i)

    2,252       2,501,809  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 07/01/34(i)

    2,129       2,176,381  
   

 

 

 
    4,678,190  
Florida — 2.0%  

County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/20(b)

    5,679       5,985,345  
   

 

 

 
Illinois — 1.0%  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 4.00%, 02/15/41

    3,225       3,100,440  
   

 

 

 
Massachusetts — 3.1%  

Commonwealth of Massachusetts Transportation Fund Revenue, RB, Rail Enhancement Program, Series A, 4.00%, 06/01/45

    2,043       2,047,175  

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 5.00%, 07/01/47

    4,574       4,907,401  

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

    2,266       2,401,869  
   

 

 

 
    9,356,445  
New Hampshire — 0.7%  

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 06/01/19(b)(i)

    2,009       2,047,730  
   

 

 

 
New York — 4.3%  

City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40

    1,575       1,605,287  

Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(i):

   

5.75%, 02/15/21(b)

    997       1,072,120  

5.75%, 02/15/47

    613       659,536  

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(i)

    6,440       7,009,840  

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

    2,595       2,866,108  
   

 

 

 
    13,212,891  
North Carolina — 0.9%  

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55

    2,550       2,805,625  
   

 

 

 
Ohio — 4.5%  

State of Ohio, Refunding RB, Cleveland Clinic Health System Obligated Group, Series A, 5.50%, 01/01/19(b)

    13,843       13,922,338  
   

 

 

 
Pennsylvania — 0.9%  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    2,340       2,619,466  
   

 

 

 
Rhode Island — 0.5%  

Narragansett Bay Commission, Refunding RB, Wastewater System, Series A, 4.00%, 09/01/43

    1,530       1,532,086  
   

 

 

 
South Carolina — 1.6%  

South Carolina Public Service Authority, Refunding RB,
Series A 5.50%, 01/01/19(b)(i)

    5,001       5,030,241  
   

 

 

 
 

 

 

68    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas — 3.4%  

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

  $ 2,520     $ 2,701,459  

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

    3,400       3,605,921  

Lower Colorado River Authority, Refunding RB, LCRA Transmission Services Corporation Project, 4.00%, 05/15/43

    2,030       2,011,207  

University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43

    1,831       1,974,923  
   

 

 

 
    10,293,510  
Wisconsin — 1.7%  

Wisconsin Health & Educational Facilities Authority, Refunding RB:

   

Froedtert & Community Health, Inc., Obligated Group, Series C, 5.25%, 04/01/19(b)(i)

    2,499       2,533,195  

The Medical College of Wisconsin, Inc., 4.00%, 12/01/46

    2,833       2,717,017  
   

 

 

 
    5,250,212  
 

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 32.9%
(Cost — $99,149,660)

 

    100,507,261  
 

 

 

 

Total Long-Term Investments — 163.3%
(Cost — $484,360,064)

 

    499,677,260  
 

 

 

 
     Shares         
Short-Term Securities — 1.1%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.45%(j)(k)

    3,341,276       3,341,610  
   

 

 

 

Total Short-Term Securities — 1.1%
(Cost — $3,341,590)

 

    3,341,610  
 

 

 

 

Total Investments — 164.4%
(Cost — $487,701,654)

 

    503,018,870  

Other Assets Less Liabilities — 1.1%

 

    3,605,534  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (19.8)%

 

    (60,610,996

VMTP Shares at Liquidation Value, Net of Deferred Offering
Costs — (45.7)%

 

    (140,000,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 306,013,408  
 

 

 

 
(a) 

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

(b) 

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

(c) 

Zero-coupon bond.

(d) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(e) 

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(f) 

Security is collateralized by municipal bonds or U.S. Treasury obligations.

(g) 

When-issued security.

(h) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(i) 

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement(s), which expire between December 1, 2018 to April 1, 2039, is $15,489,034. See Note 4 of the Notes to Financial Statements for details.

(j) 

Annualized 7-day yield as of period end.

 
(k) 

During the six months ended October 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
04/30/18
     Net
Activity
     Shares
Held at
10/31/18
     Value at
10/31/18
     Income      Net
Realized
Gain (Loss) 
(a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     986,303        2,354,973        3,341,276      $ 3,341,610      $ 39,652      $ 1,065      $ 20  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

 

 

SCHEDULES OF INVESTMENTS      69  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniVest Fund II, Inc. (MVT)

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts:

                 

10-Year U.S. Treasury Note

     6          12/19/18        $ 711        $ 5,757  

Long U.S. Treasury Bond

     58          12/19/18          8,011          176,116  

5-Year U.S. Treasury Note

     17          12/31/18          1,911          11,892  
                 

 

 

 
                  $ 193,765  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 193,765      $      $ 193,765  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative appreciation (depreciation) on futures contracts if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

 

For the six months ended October 31, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 261,633      $      $ 261,633  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ 171,276      $      $ 171,276  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 15,515,301  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 499,677,260        $                 —        $ 499,677,260  

Short-Term Securities

     3,341,610                            3,341,610  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,341,610        $ 499,677,260        $        $ 503,018,870  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 193,765        $        $        $ 193,765  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 
  (b) 

Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

 

 

 

70    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniVest Fund II, Inc. (MVT)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

 

TOB Trust Certificates

   $        $ (60,358,700      $        $ (60,358,700

VMTP Shares at Liquidation Value

              (140,000,000                 (140,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $         —        $ (200,358,700      $         —        $ (200,358,700
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended October 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      71  


Statements of Assets and Liabilities  (unaudited)

October 31, 2018

 

     MUA      MEN      MHD      MUH  

ASSETS

 

Investments at value — unaffiliated(a)

  $ 559,725,457      $ 563,485,702      $ 365,026,147      $ 280,927,023  

Investments at value — affiliated(b)

    3,111,547        2,883,184        3,204,209        1,461,847  

Cash

    29,946        48,407        22,508        19,899  

Cash pledged for futures contracts

    164,950        263,900        122,550        107,200  

Receivables:

 

Interest — unaffiliated

    9,822,608        7,269,007        5,376,120        3,899,195  

Investments sold

    228,773        1,831,163        2,100,817        1,705,169  

Variation margin on futures contracts

    54,813        88,000        40,929        35,906  

Dividends — affiliated

    4,956        2,555        7,577        700  

Dividends — unaffiliated

                          

Prepaid expenses

    3,448        17,991        17,404        17,266  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

    573,146,498        575,889,909        375,918,261        288,174,205  
 

 

 

    

 

 

    

 

 

    

 

 

 

ACCRUED LIABILITIES

 

Bank overdraft

                          

Payables:

 

Income dividend distributions — Common Shares

    1,962,421        1,424,711        993,385        697,181  

Investments purchased

    882,213        9,955,495        3,052,042        5,489,259  

Interest expense and fees

    367,326        398,466        251,938        249,863  

Investment advisory fees

    268,317        240,347        173,361        131,735  

Other accrued expenses

    195,335        188,135        140,563        121,028  

Directors’ and Officer’s fees

    4,380        3,206        2,125        1,561  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total accrued liabilities

    3,679,992        12,210,360        4,613,414        6,690,627  
 

 

 

    

 

 

    

 

 

    

 

 

 

OTHER LIABILITIES

 

TOB Trust Certificates

    71,659,281        91,588,127        60,465,002        59,871,076  

VMTP Shares, at liquidation value of $100,000 per share(c)(d)

                  83,700,000        55,000,000  

VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)

           142,274,618                
 

 

 

    

 

 

    

 

 

    

 

 

 

Total other liabilities

    71,659,281        233,862,745        144,165,002        114,871,076  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

    75,339,273        246,073,105        148,778,416        121,561,703  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 497,807,225      $ 329,816,804      $ 227,139,845      $ 166,612,502  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

 

Paid-in capital(e)(f)(g)

  $ 479,963,923      $ 311,666,822      $ 211,660,385      $ 155,975,320  

Accumulated earnings

    17,843,302        18,149,982        15,479,460        10,637,182  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 497,807,225      $ 329,816,804      $ 227,139,845      $ 166,612,502  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, offering and redemption price per share

  $ 13.83      $ 11.11      $ 16.01      $ 14.70  
 

 

 

    

 

 

    

 

 

    

 

 

 

(a) Investments at cost — unaffiliated

  $ 540,767,118      $ 546,070,719      $ 350,426,005      $ 271,566,038  

(b) Investments at cost — affiliated

  $ 3,111,547      $ 2,883,184      $ 3,204,209      $ 1,461,847  

(c) Preferred Shares outstanding, par value $0.10 per share

           1,425        837        550  

(d) Preferred Shares authorized.

           8,905        5,837        4,030  

(e) Par value per Common Share

  $ 0.10      $ 0.10      $ 0.10      $ 0.10  

(f)  Common Shares outstanding

    36,007,711        29,681,476        14,191,210        11,336,282  

(g) Common Shares authorized

    200,000,000        199,991,095        199,994,163        199,995,970  

See notes to financial statements.

 

 

72    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Assets and Liabilities  (unaudited) (continued)

October 31, 2018

 

     MUS      MUI      MVT  

ASSETS

 

Investments at value — unaffiliated(a)

  $ 275,643,805      $ 932,254,789      $ 499,677,260  

Investments at value — affiliated(b)

           1,637,526        3,341,610  

Cash

           129,792        28,133  

Cash pledged for futures contracts

    94,150        257,900        153,050  

Receivables:

 

Interest — unaffiliated

    4,175,038        12,889,894        7,905,313  

Investments sold

           3,209,279        1,345,000  

Variation margin on futures contracts

    31,281        84,436        51,094  

Dividends — affiliated

    2,935        9,265        7,356  

Prepaid expenses

    17,256        19,041        17,648  
 

 

 

    

 

 

    

 

 

 

Total assets

    279,964,465        950,491,922        512,526,464  
 

 

 

    

 

 

    

 

 

 

ACCRUED LIABILITIES

 

Bank overdraft

    99,152                

Payables:

 

Income dividend distributions — Common Shares

    657,423        1,704,184        1,352,892  

Investments purchased

    1,322,259        5,506,883        4,161,169  

Interest expense and fees

    83,302        316,247        252,296  

Investment advisory fees

    121,598        442,165        215,085  

Other accrued expenses

    122,035        284,949        170,053  

Directors’ and Officer’s fees

    1,627        307,599        2,861  
 

 

 

    

 

 

    

 

 

 

Total accrued liabilities

    2,407,396        8,562,027        6,154,356  
 

 

 

    

 

 

    

 

 

 

OTHER LIABILITIES

 

TOB Trust Certificates

    21,886,518        93,380,641        60,358,700  

VMTP Shares, at liquidation value of $100,000 per share(c)(d)

    87,000,000        287,100,000        140,000,000  
 

 

 

    

 

 

    

 

 

 

Total other liabilities

    108,886,518        380,480,641        200,358,700  
 

 

 

    

 

 

    

 

 

 

Total liabilities

    111,293,914        389,042,668        206,513,056  
 

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 168,670,551      $ 561,449,254      $ 306,013,408  
 

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

 

Paid-in capital(e)(f)(g)

  $ 168,134,858      $ 543,452,920      $ 289,451,564  

Accumulated earnings

    535,693        17,996,334        16,561,844  
 

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 168,670,551      $ 561,449,254      $ 306,013,408  
 

 

 

    

 

 

    

 

 

 

Net asset value, offering and redemption price per share

  $ 12.96      $ 14.66      $ 14.36  
 

 

 

    

 

 

    

 

 

 

(a) Investments at cost — unaffiliated

  $ 268,830,424      $ 916,409,182      $ 484,360,064  

(b) Investments at cost — affiliated

  $      $ 1,637,526      $ 3,341,590  

(c) Preferred Shares outstanding, par value $0.10 per share

    870        2,871        1,400  

(d) Preferred Shares authorized

    6,230        15,671        8,400  

(e) Par value per Common Share

  $ 0.10      $ 0.10      $ 0.10  

(f)  Common Shares outstanding

    13,018,276        38,296,266        21,305,383  

(g) Common Shares authorized

    199,993,770        199,984,329        199,991,600  

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      73  


Statements of Operations  (unaudited)

Six Months Ended October 31, 2018

 

     MUA     MEN     MHD     MUH  

INVESTMENT INCOME

 

Interest — unaffiliated

  $ 14,576,151     $ 12,369,820     $ 8,692,447     $ 6,570,042  

Dividends — affiliated

    21,981       9,066       22,334       4,221  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    14,598,132       12,378,886       8,714,781       6,574,263  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

 

Investment advisory

    1,607,255       1,442,458       1,045,098       782,615  

Professional

    43,028       45,662       38,408       33,206  

Accounting services

    41,810       41,593       30,020       24,304  

Transfer agent

    28,731       20,601       13,630       12,209  

Directors and Officer

    24,095       16,198       11,071       8,140  

Registration

    7,062       5,889       4,835       4,824  

Printing

    6,218       5,376       4,751       4,374  

Custodian

    4,798       6,879       3,514       3,332  

Rating agency

          21,608       21,599       21,595  

Miscellaneous

    17,342       10,311       4,325       3,691  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    1,780,339       1,616,575       1,177,251       898,290  

Interest expense, fees and amortization of offering costs(a)

    776,234       2,553,118       1,627,762       1,237,567  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    2,556,573       4,169,693       2,805,013       2,135,857  

Less fees waived and/or reimbursed by the Manager

    (1,660     (620     (1,570     (323
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

    2,554,913       4,169,073       2,803,443       2,135,534  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    12,043,219       8,209,813       5,911,338       4,438,729  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

 

Investments — unaffiliated

    1,885,092       (510,298     144,235       (6,099

Investments — affiliated

    267       277       24       218  

Futures contracts

    242,334       464,110       221,664       181,181  
 

 

 

   

 

 

   

 

 

   

 

 

 
    2,127,693       (45,911     365,923       175,300  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated

    (9,221,704     (10,362,097     (6,233,782     (5,156,732

Investments — affiliated

                       

Futures contracts

    162,091       277,230       135,314       128,614  
 

 

 

   

 

 

   

 

 

   

 

 

 
    (9,059,613     (10,084,867     (6,098,468     (5,028,118
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized loss

    (6,931,920     (10,130,778     (5,732,545     (4,852,818
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $ 5,111,299     $ (1,920,965   $ 178,793     $ (414,089
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Related to TOB Trusts, VRDP Shares and/or VMTP Shares.

See notes to financial statements.

 

 

74    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Operations  (unaudited) (continued)

Six Months Ended October 31, 2018

 

     MUS     MUI     MVT  

INVESTMENT INCOME

 

Interest — unaffiliated

  $ 6,130,387     $ 18,203,276     $ 11,945,158  

Dividends — affiliated

    14,894       23,415       39,652  
 

 

 

   

 

 

   

 

 

 

Total investment income

    6,145,281       18,226,691       11,984,810  
 

 

 

   

 

 

   

 

 

 

EXPENSES

 

Investment advisory

    788,235       2,645,376       1,294,020  

Professional

    35,660       55,912       41,720  

Accounting services

    24,216       61,015       38,453  

Transfer agent

    11,770       24,302       16,996  

Directors and Officer

    8,248       9,381       14,924  

Registration

    4,790       7,512       5,042  

Printing

    4,365       6,655       5,175  

Custodian

    4,174       19,746       4,481  

Rating agency

    21,600       21,630       21,607  

Miscellaneous

    6,155       44,275       7,071  
 

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    909,213       2,895,804       1,449,489  

Interest expense, fees and amortization of offering costs(a)

    1,293,424       4,395,427       2,303,311  
 

 

 

   

 

 

   

 

 

 

Total expenses

    2,202,637       7,291,231       3,752,800  

Less fees waived and/or reimbursed by the Manager

    (50,278     (1,538     (3,093
 

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

    2,152,359       7,289,693       3,749,707  
 

 

 

   

 

 

   

 

 

 

Net investment income

    3,992,922       10,936,998       8,235,103  
 

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

 

Investments — unaffiliated

    (21,534     (713,714     600,839  

Investments — affiliated

    1,368       35       1,065  

Futures contracts

    158,324       506,457       261,633  
 

 

 

   

 

 

   

 

 

 
    138,158       (207,222     863,537  
 

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

     

Investments — unaffiliated

    (5,064,210     (10,861,047     (9,400,328

Investments — affiliated

                20  

Futures contracts

    68,524       36,938       171,276  
 

 

 

   

 

 

   

 

 

 
    (4,995,686     (10,824,109     (9,229,032
 

 

 

   

 

 

   

 

 

 

Net realized and unrealized loss

    (4,857,528     (11,031,331     (8,365,495
 

 

 

   

 

 

   

 

 

 

NET DECREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $ (864,606   $ (94,333   $ (130,392
 

 

 

   

 

 

   

 

 

 

 

(a) 

Related to TOB Trusts and/or VMTP Shares.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      75  


Statements of Changes in Net Assets

 

    MUA           MEN  
     Six Months Ended
10/31/18
(unaudited)
    Year Ended
04/30/18
           Six Months Ended
10/31/18
(unaudited)
    Year Ended
04/30/18
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

OPERATIONS

         

Net investment income

  $ 12,043,219     $ 24,585,086       $ 8,209,813     $ 17,481,665  

Net realized gain (loss)

    2,127,693       3,861,385         (45,911     1,316,883  

Net change in unrealized appreciation (depreciation)

    (9,059,613     (6,115,970       (10,084,867     (8,990,694
 

 

 

   

 

 

     

 

 

   

 

 

 

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

    5,111,299       22,330,501         (1,920,965     9,807,854  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)(b)

         

Decrease in net assets resulting from distributions to Common Shareholders

    (11,774,522     (24,403,775       (8,548,265     (19,006,534
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Reinvestment of common distributions

          1,238,029               447,450  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS(b)

         

Total decrease in net assets applicable to Common Shareholders

    (6,663,223     (835,245       (10,469,230     (8,751,230

Beginning of period

    504,470,448       505,305,693         340,286,034       349,037,264  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 497,807,225     $ 504,470,448       $ 329,816,804     $ 340,286,034  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(b)

Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.

 

 

76    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Changes in Net Assets  (continued)

 

    MHD           MUH  
     Six Months Ended
10/31/18
(unaudited)
    Year Ended
04/30/18
           Six Months Ended
10/31/18
(unaudited)
    Year Ended
04/30/18
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

 

   

OPERATIONS

 

   

Net investment income

  $ 5,911,338     $ 12,456,818       $ 4,438,729     $ 9,097,811  

Net realized gain

    365,923       275,314         175,300       349,549  

Net change in unrealized appreciation (depreciation)

    (6,098,468     (5,682,277       (5,028,118     (4,335,638
 

 

 

   

 

 

     

 

 

   

 

 

 

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

    178,793       7,049,855         (414,089     5,111,722  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)(b)

 

   

Decrease in net assets resulting from distributions to Common Shareholders

    (5,960,308     (13,224,063       (4,319,123     (9,693,560
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

 

   

Reinvestment of common distributions

          411,605               290,507  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS(b)

 

   

Total decrease in net assets applicable to Common Shareholders

    (5,781,515     (5,762,603       (4,733,212     (4,291,331

Beginning of period

    232,921,360       238,683,963         171,345,714       175,637,045  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 227,139,845     $ 232,921,360       $ 166,612,502     $ 171,345,714  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(b)

Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      77  


Statements of Changes in Net Assets  (continued)

 

    MUS           MUI  
    

Six Months Ended
10/31/18

(unaudited)

   

Year Ended

04/30/18

           Six Months Ended
10/31/18
(unaudited)
    Year Ended
04/30/18
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

OPERATIONS

 

   

Net investment income

  $ 3,992,922     $ 9,174,345       $ 10,936,998     $ 22,724,306  

Net realized gain (loss)

    138,158       291,275         (207,222     2,650,231  

Net change in unrealized appreciation (depreciation)

    (4,995,686     (7,382,682       (10,824,109     (11,610,455
 

 

 

   

 

 

     

 

 

   

 

 

 

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

    (864,606     2,082,938         (94,333     13,764,082  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)(b)

 

   

Decrease in net assets resulting from distributions to Common Shareholders

    (4,283,013     (9,919,384       (10,225,103     (22,940,382
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

 

   

Reinvestment of common distributions

          40,885                
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS(b)

 

   

Total decrease in net assets applicable to Common Shareholders

    (5,147,619     (7,795,561       (10,319,436     (9,176,300

Beginning of period

    173,818,170       181,613,731         571,768,690       580,944,990  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 168,670,551     $ 173,818,170       $ 561,449,254     $ 571,768,690  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(b) 

Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.

 

 

78    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Changes in Net Assets  (continued)

 

    MVT  
     Six Months Ended
10/31/18
(unaudited)
    Year Ended
04/30/18
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

 

OPERATIONS

 

Net investment income

  $ 8,235,103     $ 17,559,402  

Net realized gain

    863,537       910,384  

Net change in unrealized appreciation (depreciation)

    (9,229,032     (9,581,981
 

 

 

   

 

 

 

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

    (130,392     8,887,805  
 

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)(b)

 

Decrease in net assets resulting from distributions to Common Shareholders

    (8,117,351     (18,273,763
 

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

 

Reinvestment of common distributions

          1,708,157  
 

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS(b)

 

Total decrease in net assets applicable to Common Shareholders

    (8,247,743     (7,677,801

Beginning of period

    314,261,151       321,938,952  
 

 

 

   

 

 

 

End of period

  $ 306,013,408     $ 314,261,151  
 

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(b) 

Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      79  


Statements of Cash Flows  (unaudited)

Six Months Ended October 31, 2018

 

     MUA     MEN     MHD     MUH  

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES

 

Net increase (decrease) in net assets resulting from operations

  $ 5,111,299     $ (1,920,965   $ 178,793     $ (414,089

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

       

Proceeds from sales of long-term investments

    50,281,529       68,322,776       27,257,485       36,444,129  

Purchases of long-term investments

    (51,340,502     (72,827,729     (23,218,732     (43,193,368

Net proceeds from sales (purchases) of short-term securities

    (884,709     (2,883,184     (2,470,195     (483,564

Amortization of premium and accretion of discount on investments and other fees

    196,946       (92,904     170,845       23,802  

Net realized (gain) loss on investments

    (1,885,359     510,021       (144,259     5,881  

Net unrealized appreciation on investments

    9,221,704       10,362,097       6,233,782       5,156,732  
(Increase) Decrease in Assets:                        

Receivables:

       

Interest — unaffiliated

    (132,715     61,617       233,984       85,813  

Dividends — affiliated

    (3,009     (1,573     (6,988     830  

Variation margin on futures contracts

    (54,813     (88,000     (40,929     (35,906

Prepaid expenses

    13,678       54,676       4,589       3,733  

Other assets

    374       2,408       617       657  
Increase (Decrease) in Liabilities:                        

Payables:

       

Investment advisory fees

    8,838       7,640       1,345       5,958  

Interest expense and fees

    59,245       73,835       17,103       60,975  

Directors’ and Officer’s

    157       83       49       36  

Variation margin on futures contracts

    (36,531     (75,719     (33,125     (25,875

Other accrued expenses

    9,038       4,958       (7,828     (7,536
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) operating activities

    10,565,170       1,510,037       8,176,536       (2,371,792
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

       

Proceeds from TOB Trust Certificates

    8,749,297       11,057,697       7,951,758       12,407,277  

Repayments of TOB Trust Certificates

    (7,500,000     (3,579,715     (10,166,247     (5,631,076

Cash dividends paid to Common Shareholders

    (11,774,521     (8,548,265     (5,960,308     (4,387,141

Increase (decrease) in bank overdraft

          (395,816            

Amortization of deferred offering costs

          (42,531            
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (provided by) used for financing activities

    (10,525,224     (1,508,630     (8,174,797     2,389,060  
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH

       

Net increase in restricted and unrestricted cash and foreign currency

    39,946       1,407       1,739       17,268  

Restricted and unrestricted cash and foreign currency at beginning of period

    154,950       310,900       143,319       109,831  
 

 

 

   

 

 

   

 

 

   

 

 

 

Restricted and unrestricted cash and foreign currency at end of period

  $ 194,896     $ 312,307     $ 145,058     $ 127,099  
 

 

 

   

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

       

Cash paid during the period for interest expense

  $ 716,989     $ 2,479,283     $ 1,610,659     $ 1,176,592  
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES

       

Cash

  $ 29,946     $ 48,407     $ 22,508     $ 19,899  

Cash pledged:

 

Futures contracts

    164,950       263,900       122,550       107,200  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 194,896     $ 312,307     $ 145,058     $ 127,099  
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES

       

Cash

  $     $     $ 7,769     $ 5,631  

Cash pledged:

 

Futures contracts

    154,950       310,900       135,550       104,200  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 154,950     $ 310,900     $ 143,319     $ 109,831  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

80    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Cash Flows  (unaudited) (continued)

Six Months Ended October 31, 2018

 

     MUS     MUI     MVT  

CASH PROVIDED BY OPERATING ACTIVITIES

     

Net decrease in net assets resulting from operations

  $ (864,606   $ (94,333   $ (130,392

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

     

Proceeds from sales of long-term investments

    45,476,874       150,273,905       42,083,514  

Purchases of long-term investments

    (44,467,680     (158,688,300     (41,524,970

Net proceeds from sales (purchases) of short-term securities

    2,823,589       (1,637,491     (2,354,221

Amortization of premium and accretion of discount on investments and other fees

    729,124       3,475,352       615,162  

Net realized (gain) loss on investments

    20,166       713,679       (601,904

Net unrealized appreciation on investments

    5,064,210       10,861,047       9,400,308  
(Increase) Decrease in Assets:                  

Receivables:

     

Interest — unaffiliated

    (22,693     (419,849     347,246  

Dividends — affiliated

    (1,091     486       (2,256

Variation margin on futures contracts

    (31,281     (84,436     (51,094

Prepaid expenses

    3,766       11,889       5,882  

Other assets

    398       2,879       2,609  
Increase (Decrease) in Liabilities:                  

Payables:

     

Investment advisory fees

    95       14,160       4,106  

Interest expense and fees

    (16,080     100,629       17,710  

Directors’ and Officer’s

    47       (9,168     75  

Variation margin on futures contracts

    (21,000     (56,625     (37,406

Other accrued expenses

    (6,775     53,209       (2,940
 

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    8,687,063       4,517,033       7,771,429  
 

 

 

   

 

 

   

 

 

 

CASH USED FOR FINANCING ACTIVITIES

     

Proceeds from TOB Trust Certificates

    2,777,274       27,999,998       9,943,814  

Repayments of TOB Trust Certificates

    (7,129,130     (21,066,337     (9,572,765

Cash dividends paid to Common Shareholders

    (4,452,251     (10,225,103     (8,117,345

Increase (decrease) in bank overdraft

    99,152       (1,152,799      
 

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

    (8,704,955     (4,444,241     (7,746,296
 

 

 

   

 

 

   

 

 

 

CASH

     

Net increase (decrease) in restricted and unrestricted cash and foreign currency

    (17,892     72,792       25,133  

Restricted and unrestricted cash and foreign currency at beginning of period

    112,042       314,900       156,050  
 

 

 

   

 

 

   

 

 

 

Restricted and unrestricted cash and foreign currency at end of period

  $ 94,150     $ 387,692     $ 181,183  
 

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

     

Cash paid during the period for interest expense

  $ 1,309,504     $ 4,294,798     $ 2,285,601  
 

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES

     

Cash

  $     $ 129,792     $ 28,133  

Cash pledged:

 

Futures contracts

    94,150       257,900       153,050  
 

 

 

   

 

 

   

 

 

 
  $ 94,150     $ 387,692     $ 181,183  
 

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES

     

Cash

  $ 16,892     $     $  

Cash pledged:

 

Futures contracts

    95,150       314,900       156,050  
 

 

 

   

 

 

   

 

 

 
  $ 112,042     $ 314,900     $ 156,050  
 

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      81  


Financial Highlights

(For a share outstanding throughout each period)

 

    MUA  
    Six Months Ended
10/31/18
(unaudited)
          Year Ended April 30,  
          2018      2017      2016      2015      2014  

Net asset value, beginning of period

  $ 14.01             $ 14.07      $ 14.45      $ 14.12      $ 13.56      $ 14.36  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.33         0.68        0.70        0.72        0.73        0.77  

Net realized and unrealized gain (loss)

    (0.18       (0.06      (0.38      0.35        0.59        (0.82
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.15         0.62        0.32        1.07        1.32        (0.05
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.33       (0.68      (0.70      (0.74      (0.76      (0.75
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 13.83       $ 14.01      $ 14.07      $ 14.45      $ 14.12      $ 13.56  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 12.65       $ 13.21      $ 14.82      $ 14.74      $ 14.22      $ 12.85  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    1.19 %(d)        4.47      2.23      7.90      10.11      0.47
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    (1.84 )%(d)        (6.48 )%       5.56      9.30      17.02      (2.06 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    1.00 %(e)        0.93      0.87      0.81      0.82      0.82
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    1.00 %(e)        0.93      0.87      0.81      0.82      0.82
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    0.70 %(e)        0.69      0.69      0.70      0.71      0.70
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.73 %(e)        4.83      4.93      5.09      5.24      5.84
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

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

  $ 497,807       $ 504,470      $ 505,306      $ 517,697      $ 505,341      $ 485,319  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 71,659       $ 71,925      $ 67,507      $ 66,087      $ 61,066      $ 71,145  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    9       15      11      18      22      19
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

82    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MEN  
    Six Months Ended
10/31/18
(unaudited)
          Year Ended April 30,  
          2018      2017      2016      2015      2014  

Net asset value, beginning of period

  $ 11.46             $ 11.77      $ 12.52      $ 12.27      $ 11.94      $ 12.63  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.28         0.59        0.65        0.70        0.71        0.73  

Net realized and unrealized gain (loss)

    (0.34       (0.26      (0.72      0.28        0.35        (0.70
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    (0.06       0.33        (0.07      0.98        1.06        0.03  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.29       (0.64      (0.68      (0.73      (0.73      (0.72
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 11.11       $ 11.46      $ 11.77      $ 12.52      $ 12.27      $ 11.94  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 9.69       $ 10.48      $ 11.69      $ 12.55      $ 11.67      $ 11.27  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    (0.30 )%(d)        2.93      (0.51 )%       8.50      9.49      1.06
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    (4.92 )%(d)        (5.23 )%       (1.42 )%       14.35      10.33      (4.76 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.43 %(e)        2.06      1.73      1.44      1.44      1.50
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.43 %(e)        2.06      1.73      1.44      1.43      1.50
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(f)

    0.94 %(e)        0.92      0.89      0.90      0.91      0.92
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.79 %(e)        4.97      5.29      5.71      5.76      6.37
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

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

  $ 329,817       $ 340,286      $ 349,037      $ 370,342      $ 362,703      $ 352,878  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 142,500       $ 142,500      $ 142,500      $ 142,500      $ 142,500      $ 142,500  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $ 331,450       $ 338,797      $ 344,938      $ 359,889      $ 354,528      $ 347,633  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 91,588       $ 87,395      $ 70,823      $ 67,160      $ 76,094      $ 73,379  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    12       21      12      10      12      16
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      83  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MHD  
    Six Months Ended
10/31/18
(unaudited)
          Year Ended April 30,  
          2018      2017      2016      2015      2014  

Net asset value, beginning of period

  $ 16.41             $ 16.85      $ 17.95      $ 17.59      $ 16.85      $ 18.12  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.42         0.88        0.95        1.00        1.03        1.04  

Net realized and unrealized gain (loss)

    (0.40       (0.39      (1.07      0.42        0.77        (1.22
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.02         0.49        (0.12      1.42        1.80        (0.18
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Distributions to Common Shareholders(b)                                              

From net investment income

    (0.42       (0.92      (0.98      (1.06      (1.06      (1.08

From net realized gain

            (0.01                           (0.01
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.42       (0.93      (0.98      (1.06      (1.06      (1.09
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 16.01       $ 16.41      $ 16.85      $ 17.95      $ 17.59      $ 16.85  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 14.03       $ 14.98      $ 16.65      $ 18.14      $ 17.25      $ 16.01  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    0.28 %(d)        3.07      (0.67 )%       8.65      11.22      (0.15 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    (3.73 )%(d)        (4.79 )%       (2.87 )%       11.91      14.80      (5.55 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.39 %(e)        2.16      1.87      1.53      1.50      1.64
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.39 %(e)        2.16      1.87      1.53      1.50      1.64
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    1.00 %(e)        1.01      0.99      0.99      0.99      1.04
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    5.04 %(e)        5.19      5.42      5.75      5.86      6.48
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

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

  $ 227,140       $ 232,921      $ 238,684      $ 253,864      $ 248,646      $ 238,113  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 83,700       $ 83,700      $ 83,700      $ 83,700      $ 83,700      $ 83,700  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 371,374       $ 378,281      $ 385,166      $ 403,302      $ 397,068      $ 384,484  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 60,465       $ 63,166      $ 62,233      $ 60,289      $ 56,784      $ 60,238  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    5       12      9      7      11      20
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

84    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MUH  
   

Six Months Ended

10/31/18
(unaudited)

          Year Ended April 30,  
          2018      2017      2016      2015      2014  

Net asset value, beginning of period

  $ 15.11             $ 15.52      $ 16.51      $ 16.21      $ 15.61      $ 16.93  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.39         0.80        0.86        0.91        0.93        0.95  

Net realized and unrealized gain (loss)

    (0.42       (0.35      (0.95      0.33        0.64        (1.17
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    (0.03       0.45        (0.09      1.24        1.57        (0.22
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Distributions to Common Shareholders(b)                                              

From net investment income

    (0.38       (0.85      (0.90      (0.94      (0.97      (1.00

From net realized gain

            (0.01                           (0.10
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.38       (0.86      (0.90      (0.94      (0.97      (1.10
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 14.70       $ 15.11      $ 15.52      $ 16.51      $ 16.21      $ 15.61  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 12.67       $ 13.75      $ 15.59      $ 16.23      $ 15.28      $ 14.84  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    0.05 %(d)        3.09      (0.52 )%       8.25      10.64      (0.40 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    (5.24 )%(d)        (6.61 )%       1.65      12.90      9.71      (4.30 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.48 %(e)        2.12      1.83      1.50      1.48      1.61
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.48 %(e)        2.12      1.83      1.50      1.48      1.61
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    1.04 %(e)        1.02      1.00      1.00      1.00      1.04
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    5.14 %(e)        5.16      5.37      5.66      5.76      6.36
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

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

  $ 166,613       $ 171,346      $ 175,637      $ 186,553      $ 183,214      $ 176,395  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 55,000       $ 55,000      $ 55,000      $ 55,000      $ 55,000      $ 55,000  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 402,932       $ 411,538      $ 419,340      $ 439,188      $ 433,117      $ 420,718  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 59,871       $ 54,100      $ 47,507      $ 46,103      $ 43,568      $ 48,497  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    13       16      10      7      11      18
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      85  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MUS  
    Six Months Ended
10/31/18
(unaudited)
          Year Ended April 30,  
          2018      2017      2016      2015      2014  

Net asset value, beginning of period

  $ 13.35             $ 13.95      $ 14.84      $ 14.57      $ 14.18      $ 15.31  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.31         0.70        0.75        0.80        0.80        0.82  

Net realized and unrealized gain (loss)

    (0.37       (0.54      (0.84      0.28        0.40        (1.13
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    (0.06       0.16        (0.09      1.08        1.20        (0.31
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.33       (0.76      (0.80      (0.81      (0.81      (0.82
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 12.96       $ 13.35      $ 13.95      $ 14.84      $ 14.57      $ 14.18  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 11.17       $ 12.40      $ 13.38      $ 14.31      $ 13.32      $ 12.88  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    (0.21 )%(d)        1.33      (0.47 )%       8.24      9.20      (1.07 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    (7.40 )%(d)        (1.88 )%       (1.00 )%       14.09      9.91      (7.78 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.52 %(e)        2.30      1.95      1.60      1.59      1.75
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.46 %(e)        2.24      1.91      1.58      1.57      1.67
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and/or paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    0.98 %(e)        0.99      0.98      0.99      0.99      0.99
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.57 %(e)        5.08      5.22      5.49      5.49      6.00
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

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

  $ 168,671       $ 173,818      $ 181,614      $ 193,110      $ 189,594      $ 184,479  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 87,000       $ 87,000      $ 87,000      $ 87,000      $ 87,000      $ 87,000  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 293,874       $ 299,791      $ 308,751      $ 321,966      $ 317,924      $ 312,045  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 21,887       $ 26,238      $ 29,150      $ 24,429      $ 21,937      $ 25,187  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    15       21      18      25      11      46
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

86    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MUI  
    Six Months Ended
10/31/18
(unaudited)
          Year Ended April 30,  
          2018      2017      2016      2015      2014  

Net asset value, beginning of period

  $ 14.93             $ 15.17      $ 16.16      $ 15.86      $ 15.64      $ 16.60  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.29         0.59        0.65        0.73        0.77        0.80  

Net realized and unrealized gain (loss)

    (0.29       (0.23      (0.83      0.53        0.27        (0.85
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

            0.36        (0.18      1.26        1.04        (0.05
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Distributions to Common Shareholders(b)                                              

From net investment income

    (0.27       (0.60      (0.67      (0.78      (0.82      (0.86

From net realized gain

            (0.00 )(c)       (0.14      (0.18             (0.05
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.27       (0.60      (0.81      (0.96      (0.82      (0.91
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 14.66       $ 14.93      $ 15.17      $ 16.16      $ 15.86      $ 15.64  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 12.66       $ 13.01      $ 13.96      $ 15.19      $ 14.47      $ 14.55  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(d)

                 

Based on net asset value

    0.22 %(e)        2.76      (0.69 )%       9.04      7.27      0.50
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    (0.68 )%(e)        (2.69 )%       (2.77 )%       12.27      5.20      (3.73 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.52 %(f)        2.17      1.90      1.57      1.52      1.65
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.52 %(f)        2.17      1.89      1.57      1.52      1.65
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(g)

    1.00 %(f)        0.97      0.96      0.94      0.96      1.00
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.78 %(f)        3.87      4.12      4.61      4.82      5.28
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

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

  $ 561,449       $ 571,769      $ 580,945      $ 618,971      $ 607,440      $ 599,066  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 287,100       $ 287,100      $ 287,100      $ 287,100      $ 287,100      $ 287,100  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 295,559       $ 299,153      $ 302,349      $ 315,594      $ 311,578      $ 308,661  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 93,381       $ 79,136      $ 58,337      $ 63,102      $ 52,932      $ 69,070  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    14       34      12      20      18      22
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Amount is greater than $(0.005) per share.

(d) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(e) 

Aggregate total return.

(f) 

Annualized.

(g) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      87  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MVT  
    Six Months Ended
10/31/18
(unaudited)
          Year Ended April 30,  
          2018      2017      2016      2015      2014  

Net asset value, beginning of period

  $ 14.75             $ 15.19      $ 16.17      $ 16.01      $ 15.45      $ 16.69  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.39         0.83        0.91        0.98        0.99        1.03  

Net realized and unrealized gain (loss)

    (0.40       (0.41      (0.95      0.18        0.61        (1.19
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    (0.01       0.42        (0.04      1.16        1.60        (0.16
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.38       (0.86      (0.94      (1.00      (1.04      (1.08
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 14.36       $ 14.75      $ 15.19      $ 16.17      $ 16.01      $ 15.45  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 12.80       $ 14.05      $ 15.45      $ 17.38      $ 16.26      $ 15.16  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    0.09 %(d)        2.79      (0.34 )%       7.61      10.65      (0.37 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    (6.34 )%(d)        (3.74 )%       (5.68 )%       13.88      14.52      (5.74 )% 
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.37 %(e)        2.11      1.88      1.52      1.50      1.63
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.37 %(e)        2.11      1.87      1.52      1.50      1.63
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    0.91 %(e)        0.91      0.92      0.92      0.92      0.96
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    5.21 %(e)        5.44      5.78      6.15      6.17      6.93
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

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

  $ 306,013       $ 314,261      $ 321,939      $ 340,753      $ 336,320      $ 324,146  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 140,000       $ 140,000      $ 140,000      $ 140,000      $ 140,000      $ 140,000  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 318,581       $ 324,472      $ 329,956      $ 343,395      $ 340,229      $ 331,533  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 60,359       $ 61,343      $ 60,575      $ 69,195      $ 66,439      $ 66,715  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    8       11      9      6      10      17
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

88    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (unaudited)

 

1.

ORGANIZATION

The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to herein collectively as the “Funds”, or individually as a “Fund”:

 

Fund Name   Herein Referred To As    Organized    Diversification
Classification

BlackRock MuniAssets Fund, Inc.

  MUA    Maryland    Diversified

BlackRock MuniEnhanced Fund, Inc.

  MEN    Maryland    Diversified

BlackRock MuniHoldings Fund, Inc.

  MHD    Maryland    Diversified

BlackRock MuniHoldings Fund II, Inc.

  MUH    Maryland    Diversified

BlackRock MuniHoldings Quality Fund, Inc.

  MUS    Maryland    Diversified

BlackRock Muni Intermediate Duration Fund, Inc.

  MUI    Maryland    Diversified

BlackRock MuniVest Fund II, Inc.

  MVT    Maryland    Diversified

The Boards of Directors of the Funds are collectively referred to throughout this report as the “Board of Directors” or the “Board,” and the directors thereof are collectively referred to throughout this report as “Directors”. The Funds determine and make available for publication the net asset values (“NAVs”) of their Common Shares on a daily basis.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of closed-end funds referred to as the Closed-End Complex.

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the “trade dates”). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) or certain borrowings (e.g., TOB Trust transactions) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowing to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions from net investment income are declared monthly and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Distributions to Preferred Shareholders are accrued and determined as described in Note 10.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Fund’s Board, the independent 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 certain other BlackRock Closed-End Funds selected by the Independent Directors. This has the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund, if applicable. Deferred compensation liabilities are included in the Directors’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan.

Recent Accounting Standards: In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently evaluating the impact of this guidance to the Funds.

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.

 

 

NOTES TO FINANCIAL STATEMENTS      89  


Notes to Financial Statements   (unaudited) (continued)

 

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Funds’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

   

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

 

   

Investments in open-end U.S. mutual funds are valued at NAV each business day.

 

   

Futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

 

   

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access

 

   

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

 

   

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

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

Forward Commitments and When-Issued Delayed Delivery Securities: Certain funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A fund

 

 

90    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements   (unaudited) (continued)

 

may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a fund may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

Municipal Bonds Transferred to TOB Trusts: Certain funds leverage their assets through the use of “TOB Trust” transactions. The funds transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a fund provide the fund with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a fund has contributed bonds. If multiple BlackRock advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds ratably in proportion to their participation in the TOB Trust.

TOB Trusts are supported by a liquidity facility provided by a third party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

The TOB Trust may be collapsed without the consent of a fund, upon the occurrence of a termination event, as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Funds) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.

While a fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a fund to borrow money for purposes of making investments. MUA, MEN and MVT management believes that a fund’s restrictions on borrowings do not apply to the Funds’ TOB Trust transactions. Each fund’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a fund. A fund typically invests the cash received in additional municipal bonds.

Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a fund’s Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a fund’s payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a fund on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, the funds incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of deferred offering costs in the Statements of Operations. Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:

 

     Interest Expense      Liquidity Fees      Other Expenses      Total  

MUA

  $ 541,271      $ 159,985      $ 74,978      $ 776,234  

MEN

    627,900        193,380        65,295        886,575  

MHD

    438,779        131,101        51,166        621,046  

MUH

    407,754        122,955        45,336        576,045  

MUS

    171,476        54,789        20,752        247,017  

MUI

    666,805        218,012        57,465        942,282  

MVT

    436,222        128,080        55,135        619,437  

 

 

NOTES TO FINANCIAL STATEMENTS      91  


Notes to Financial Statements   (unaudited) (continued)

 

For the six months ended October 31, 2018, the following table is a summary of each Fund’s TOB Trusts:

 

     Underlying
Municipal Bonds
Transferred to
TOB Trusts 
(a)
     Liability for
TOB Trust
Certificates 
(b)
     Range of
Interest Rates
on TOB Trust
Certificates at
Period End
     Average
TOB Trust
Certificates
Outstanding
     Daily Weighted
Average Rate
of Interest and
Other Expenses
on TOB  Trusts
 

MUA

  $ 118,601,167      $ 71,659,281        1.62% — 1.80    $ 73,912,944        2.08

MEN

    151,920,979        91,588,127        1.56 — 2.24        89,618,170        2.04  

MHD

    100,281,582        60,465,002        1.56 — 2.24        60,371,404        2.03  

MUH

    97,135,743        59,871,076        1.56 — 2.24        56,318,740        2.02  

MUS

    39,758,345        21,886,518        1.60 — 1.90        23,848,557        2.05  

MUI

    154,923,704        93,380,641        1.60 — 1.68        93,827,462        1.99  

MVT

    100,507,261        60,358,700        1.56 — 2.24        59,740,474        2.05  

 

  (a)

The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the funds, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the fund, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts.

 
  (b)

TOB Trusts may be structured on a non-recourse or recourse basis. When a fund invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a fund invests in a TOB Trust on a recourse basis, a fund enters into a reimbursement agreement with the Liquidity Provider where a fund is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a fund invests in a recourse TOB Trust, a fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a fund at October 31, 2018, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a fund at October 31, 2018.

 

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk), changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock, Inc. (“BlackRock”) for 1940 Act purposes.

Investment Advisory: Each Fund entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund, except MUI, pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net assets:

 

     MUA      MEN      MHD      MUH      MUS      MVT  

Investment advisory fees

    0.55      0.50      0.55      0.55      0.55      0.50

 

 

92    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements   (unaudited) (continued)

 

For such services, MUI pays the Manager a monthly fee of 0.55% of (i) the average daily value of MUI’s net assets and (ii) the proceeds of any outstanding debt securities and borrowings used for leverage.

For purposes of calculating these fees, “net assets” mean the total assets of a Fund minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is understood that the liquidation preference of any outstanding preferred shares (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Fund’s NAV.

Waivers: The Manager, for MUS, voluntarily agreed to waive its investment advisory fee on the proceeds of the Preferred Shares and TOB Trusts that exceed 35% of total assets minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). The voluntary waiver may be reduced or discontinued at any time without notice. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended October 31, 2018, the waiver was $49,117.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). These amounts are included in fees waived by the Manager in the Statements of Operations. For the six months ended October 31, 2018, the amounts waived were as follows:

 

     MUA      MEN      MHD      MUH      MUS      MUI      MVT  

Amounts waived

  $ 1,660      $ 620      $ 1,570      $ 323      $ 1,161      $ 1,538      $ 3,093  

The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2019. The agreement can be renewed for annual periods thereafter, and may be terminated on 90 days’ notice, each subject to approval by a majority of the Funds’ Independent Directors. For the six months ended October 31, 2018, there were no fees waived by the Manager.

Directors and Officers: Certain directors and/or officers of the Funds are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Directors and Officer in the Statements of Operations.

Other Transactions: The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the six months ended October 31, 2018, there were no transactions to report.

 

7.

PURCHASES AND SALES

For the six months ended October 31, 2018, purchases and sales of investments, excluding short-term securities, were as follows:

 

     MUA      MEN      MHD      MUH      MUS      MUI      MVT  

Purchases

  $ 50,083,178      $ 69,743,308      $ 20,253,507      $ 43,068,279      $ 43,298,240      $ 149,861,164      $ 40,988,870  

Sales

    50,055,261        68,830,595        29,142,517        37,952,332        45,476,874        128,719,580        42,753,514  

 

8.

INCOME TAX INFORMATION

It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for each of the four years ended April 30, 2018. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of April 30, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of April 30, 2018, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

Expires April 30,   MUA      MEN      MUS  

No expiration date(a)

  $ 2,348,073      $      $ 6,959,194  

2019

    2,194,154        76,432         
 

 

 

    

 

 

    

 

 

 
  $ 4,542,227      $ 76,432      $ 6,959,194  
 

 

 

    

 

 

    

 

 

 

 

  (a) 

Must be utilized prior to losses subject to expiration.

 

 

 

NOTES TO FINANCIAL STATEMENTS      93  


Notes to Financial Statements   (unaudited) (continued)

 

As of October 31, 2018, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

 

     MUA     MEN     MHD     MUH     MUS     MUI     MVT  

Tax cost

  $ 471,569,803     $ 458,026,247     $ 293,419,602     $ 212,775,313     $ 247,081,281     $ 824,959,979     $ 427,483,120  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross unrealized appreciation

  $ 28,389,908     $ 22,926,341     $ 16,556,625     $ 12,007,452     $ 9,380,968     $ 20,943,920     $ 18,451,829  

Gross unrealized depreciation

    (8,580,315     (5,841,972     (2,062,966     (2,129,405     (2,587,261     (5,166,807     (3,081,014
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net unrealized appreciation (depreciation)

  $ 19,809,593     $ 17,084,369     $ 14,493,659     $ 9,878,047     $ 6,793,707     $ 15,777,113     $ 15,370,815  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

9.

PRINCIPAL RISKS

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

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Fund’s ability to buy or sell bonds. As a result, a Fund may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Fund needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations.

Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolio’s current earnings rate.

The Funds may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Funds reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Fund.

A Fund structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

Should short-term interest rates rise, the Funds’ investments in the TOB Trusts may adversely affect the Funds’ net investment income and dividends to shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds’ NAVs per share.

The SEC and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Funds’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Funds, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

 

 

94    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements   (unaudited) (continued)

 

Concentration Risk: As of period end, MEN, MUS and MUI invested a significant portion of their assets in securities in the Transportation sector. Changes in economic conditions affecting such sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

The Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates. The Federal Reserve has begun to raise the Federal Funds rate, and each increase results in more pronounced interest rate risk in the current market environment.

 

10.

CAPITAL SHARE TRANSACTIONS

Each Fund is authorized to issue 200 million shares, 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 outstanding is $0.10. The Board is authorized, however, to reclassify any unissued shares to Preferred Shares without the 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:

 

     MUA      MEN      MHD      MUH      MUS      MVT  

Year Ended April 30, 2018

    86,656        37,435        24,051        18,533        2,901        111,960  

For the six months ended October 31, 2018, shares issued and outstanding remained constant for all Funds.

For the year ended April 30, 2018, shares issued and outstanding remained constant for MUI.

Preferred Shares

A Fund’s Preferred Shares rank prior to the Fund’s Common Shares as to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of a Fund. The 1940 Act prohibits the declaration of any dividend on Common Shares or the repurchase of Common Shares if the Fund fails to maintain asset coverage of at least 200% of the liquidation preference of its outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, a Fund is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with the Fund’s Preferred Shares or repurchasing such shares if a Fund fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares’ governing instruments or comply with the basic maintenance amount requirement of the ratings agencies rating the Preferred Shares.

The holders of Preferred Shares have voting rights equal to the voting rights of the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class on certain matters. However, the holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members to the Board, (ii) elect the full Board if dividends on the Preferred Shares are not paid for a period of two years and (iii) a separate class vote to amend the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred Shares, voting as a separate class, to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

VRDP Shares

MEN has issued Series W-7 VRDP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The VRDP Shares include a liquidity feature and may be subject to a special rate period. As of period end, the VRDP Shares outstanding were as follows:

 

     Issue
Date
     Shares
Issued
     Aggregate
Principal
     Maturity
Date
 

MEN

    05/19/11        1,425      $ 142,500,000        06/01/41  

Redemption Terms: MEN is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, MEN is required to begin to segregate liquid assets with the Fund’s custodian to fund the redemption. In addition, MEN is required to redeem certain of its outstanding VRDP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the VRDP Shares may also be redeemed, in whole or in part, at any time at the option MEN. The redemption price per VRDP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends.

Liquidity Feature: VRDP Shares are subject to a fee agreement between MEN and the liquidity provider that requires a per annum liquidity fee and, in some cases, an upfront or initial commitment fee, payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations. The fee agreement between MEN and the liquidity provider is scheduled to expire on July 4, 2019 unless renewed or terminated in advance.

 

 

NOTES TO FINANCIAL STATEMENTS      95  


Notes to Financial Statements   (unaudited) (continued)

 

In the event a fee agreement is not renewed or is terminated in advance, and MEN does not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. In the event of such mandatory purchase, MEN is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, MEN is required to begin to segregate liquid assets with its custodian to fund the redemption. There is no assurance that MEN will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Remarketing: MEN may incur remarketing fees of 0.10% on the aggregate principal amount of all its VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. During any special rate period (as described below), MEN may incur nominal or no remarketing fees.

Ratings: As of period end, the VRDP Shares were assigned the following long-term ratings:

 

     Moody’s      Fitch  

MEN

    Aa1        AAA  

Special Rate Period: MEN may commence a “special rate period” with respect to its VRDP Shares, during which the VRDP Shares will not be subject to any remarketing and the dividend rate will be based on a predetermined methodology. During a special rate period, short-term ratings on VRDP Shares are withdrawn. MEN has commenced or is set to commence a special rate period:

 

     Commencement
Date
     Expiration Date
as of period ended
10/31/18
 

MEN

    06/21/12        06/19/19  

Prior to the expiration date, MEN and the VRDP Shares holder may mutually agree to extend the special rate period. If a special rate period is not extended, the VRDP Shares will revert to remarketable securities upon the termination of the special rate period and will be remarketed and available for purchase by qualified institutional investors.

During the special rate period: (i) the liquidity and fee agreements remain in effect, (ii) VRDP Shares remain subject to mandatory redemption by MEN on the maturity date, (iii) VRDP Shares will not be remarketed or subject to optional or mandatory tender events, (iv) MEN is required to comply with the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares as is required when the VRDP Shares are not in a special rate period, (v) MEN will pay dividends monthly based on the sum of the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index rate and a percentage per annum based on the long-term ratings assigned to the VRDP Shares and (vi) MEN will pay nominal or no fees to the liquidity provider and remarketing agent.

If MEN redeems its VRDP Shares prior to end of the special rate period and the VRDP Shares have long-term ratings above A1/A+ and its equivalent by all ratings agencies then rating the VRDP Shares, then such redemption may be subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.

Dividends: Except during the Special Rate Period, dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly based upon either short-term rating. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed.

For the six months ended October 31, 2018, the annualized dividend rate for the VRDP Shares was 2.26%.

For the six months ended October 31, 2018, VRDP Shares issued and outstanding of MEN remained constant.

VMTP Shares

MHD, MUH, MUS, MUI and MVT (for purposes of this section, a “VMTP Fund”) have issued Series W-7 VMTP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act. The VMTP Shares are subject to certain restrictions on transfer, and a VMTP Fund may also be required to register the VMTP Shares for sale under the Securities Act under certain circumstances.

As of period end, the VMTP Shares outstanding were as follows:

 

     Issue
Date
     Shares
Issued
     Aggregate
Principal
     Term
Redemption
Date
 

MHD

    12/16/11        837      $ 83,700,000        07/02/19  

MUH

    12/16/11        550        55,000,000        07/02/19  

MUS

    12/16/11        870        87,000,000        07/02/19  

MUI

    12/07/12        2,871        287,100,000        07/02/19  

MVT

    12/16/11        1,400        140,000,000        07/02/19  

 

 

96    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements   (unaudited) (continued)

 

Redemption Terms: A VMTP Fund is required to redeem its VMTP Shares on the term redemption date, unless earlier redeemed or repurchased or unless extended. There is no assurance that the term will be extended further or that VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months prior to the term redemption date, a VMTP Fund is required to begin to segregate liquid assets with its custodian to fund the redemption. In addition, a VMTP Fund is required to redeem certain of its outstanding VMTP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, VMTP Shares may be redeemed, in whole or in part, at any time at the option of the VMTP Fund. The redemption price per VMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends and applicable redemption premium. If a VMTP Fund redeems the VMTP Shares prior to the term redemption date and the VMTP Shares have long-term ratings above A1/A+ or its equivalent by the ratings agencies then rating the VMTP Shares, then such redemption may be subject to a prescribed redemption premium (up to 3% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining until the term redemption date, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.

Dividends: Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to SIFMA Municipal Swap Index. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by the ratings agencies then rating the VMTP Shares. As of period end, the VMTP Shares were assigned the following long-term ratings:

 

     Moody’s      Fitch  

MHD

    Aa1        AAA  

MUH

    Aa1        AAA  

MUS

    Aa1        AAA  

MUI

    Aa1        AAA  

MVT

    Aa1        AAA  

The dividend rate on the VMTP Shares is subject to a step-up spread if the VMPT Funds fail to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and complying with certain asset coverage and leverage requirements.

For the six months ended October 31, 2018, the average annualized dividend rates for the VMTP Shares were as follows:

 

     MHD      MUH      MUS      MUI      MVT  

Rate

    2.39      2.39      2.39      2.39      2.39

For the six months ended October 31, 2018, VMTP Shares issued and outstanding of each Fund remained constant.

Offering Costs: The Funds incurred costs in connection with the issuance of VRDP and VMTP Shares, which were recorded as a direct deduction from the carrying value of the related debt liability and will be amortized over the life of the VRDP and VMTP Shares with the exception of any upfront fees paid by a VRDP Fund to the liquidity provider which, if any, were amortized over the life of the liquidity agreement. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

MUI’s offering costs that were recorded as a deferred charge and amortized over the 30-year life of MUI’s VMTP Shares were accelerated and charged to expense immediately upon redemption of MUI’s VMTP Shares. Costs incurred in connection with the issuance of MUI’s VMTP Shares were recorded as a deferred charge and will be amortized over the life of the VMTP Shares.

Financial Reporting: The VRDP and VMTP Shares are considered debt of the issuer; therefore, the liquidation preference, which approximates fair value of the VRDP and VMTP Shares, is recorded as a liability in the Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP and VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP and VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP and VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes. Dividends and amortization of deferred offering costs on VRDP and VMTP Shares are included in interest expense, fees and amortization of offering costs in the Statements of Operations:

 

    

Dividends

Accrued

     Deferred
Offering
Costs
Amortization
 

MUA

  $      $  

MEN

    1,624,012        42,531  

MHD

    1,006,716         

MUH

    661,522         

MUS

    1,046,407         

MUI

    3,453,145         

MVT

    1,683,874         

 

 

NOTES TO FINANCIAL STATEMENTS      97  


Notes to Financial Statements   (unaudited) (continued)

 

 

11.

REGULATION S-X AMENDMENTS

On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to Regulation S-X in this shareholder report. The amendments impacted certain disclosure presentation on the Statements of Assets and Liabilities, Statements of Changes in Net Assets and Notes to Financial Statements.

Prior year distribution information and undistributed net investment income in the Statements of Changes in Net Assets has been modified to conform to the current year presentation in accordance with the Regulation S-X changes.

Distributions for the year ended April 30, 2018 were classified as follows:

 

     Net Investment Income      Net Realized Gain  

MUA

  $ 24,403,775      $  

MEN

    19,006,534         

MHD

    13,034,780        189,283  

MUH

    9,599,378        94,182  

MUS

    9,919,384         

MUI

    22,880,908        59,474  

MVT

    18,273,763         

Undistributed net investment income as of April 30, 2018 is as follows:

 

     Undistributed
Net Investment Income
 

MUA

  $ 964,175  

MEN

    2,730,008  

MHD

    797,480  

MUH

    1,379,268  

MUS

    1,190,147  

MUI

    1,116,863  

MVT

    1,315,017  

 

12.

SUBSEQUENT EVENTS

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

 

     Common Dividend
Per Share
   

 

    Preferred Shares (c)  
     Paid (a)      Declared (b)            Shares      Series      Declared  

MUA

  $ 0.0545      $ 0.0545                     $  

MEN

    0.0480        0.0480         VRDP        W-7        314,905  

MHD

    0.0700        0.0675         VMTP        W-7        182,168  

MUH

    0.0615        0.0615         VMTP        W-7        119,704  

MUS

    0.0505        0.0505         VMTP        W-7        189,350  

MUI

    0.0445        0.0445         VMTP        W-7        624,855  

MVT

    0.0635        0.0635               VMTP        W-7        304,701  

 

  (a) 

Net investment income dividend paid on December 3, 2018 to Common Shareholders of record on November 15, 2018.

 
  (b) 

Net investment income dividend declared on December 3, 2018 payable to Common Shareholders of record on December 13, 2018.

 
  (c) 

Dividends declared for period November 1, 2018 to November 30, 2018.

 

 

     Common Dividends Per Share  
     Declared (a)      Declared (b)      Declared (c)  

MUA

  $ 0.004380      $      $  

MEN

    0.000160               0.004955  

MHD

    0.000669        0.016620        0.035907  

MUH

    0.001253        0.018947        0.033816  

MUS

                   

MUI

    0.000421               0.033545  

MVT

    0.001559        0.004690        0.050768  

 

  (a)

Net investment income special dividend declared amounts per share on December 3, 2018, payable to Common Shareholders of record on December 13, 2018.

 
  (b)

Special short-term capital gain distribution declared amounts per share on December 3, 2018, payable to Common Shareholders of record on December 13, 2018.

 
  (c)

Special long-term capital gain distribution declared amounts per share on December 3, 2018, payable to Common Shareholders of record on December 13, 2018.

 

On November 15, 2018, the Board authorized each Fund to participate in an open market share repurchase program. Under the program, each Fund may repurchase up to 5% of its outstanding common shares through November 30, 2019, based on common shares outstanding as of the close of business on November 30, 2018, subject to certain conditions. There is no assurance that the Funds will purchase shares in any particular amounts.

 

 

98    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Disclosure of Investment Advisory Agreements

 

The Board of Directors (each, a “Board,” collectively, the “Boards,” and the members of which are referred to as “Board Members”) of BlackRock MuniAssets Fund, Inc. (“MUA”), BlackRock MuniEnhanced Fund, Inc. (“MEN”), BlackRock MuniHoldings Fund, Inc. (“MHD”), BlackRock MuniHoldings Fund II, Inc. (“MUH”), BlackRock MuniHoldings Quality Fund, Inc. (“MUS”), BlackRock Muni Intermediate Duration Fund, Inc. (“MUI”) and BlackRock MuniVest Fund II, Inc. (“MVT,” and together with MUA, MEN, MHD, MUH, MUS and MUI, each, a “Fund,” and, collectively, the “Funds”) met in person on April 24, 2018 (the “April Meeting”) and June 6-7, 2018 (the “June Meeting”) to consider the approval of each Fund’s investment advisory agreement (each, an “Agreement,” and collectively, the “Agreements”) with BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. The Manager is referred to herein as “BlackRock”.

Activities and Composition of the Board

On the date of the June Meeting, the Board of each Fund consisted of ten individuals, eight of whom were not “interested persons” of the Fund as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of its Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chair of each Board is an Independent Board Member. Each Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee, and an Executive Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member).

The Agreements

Pursuant to the 1940 Act, each Board is required to consider the continuation of the Agreement for its Fund on an annual basis. Each Board has four quarterly meetings per year, each typically extending for two days, and additional in-person and telephonic meetings throughout the year, as needed. Each Board also has a fifth one-day meeting to consider specific information surrounding the consideration of renewing the Agreement for its Fund. Each Board’s consideration of the Agreement for its Fund is a year-long deliberative process, during which the Board assessed, among other things, the nature, extent and quality of the services provided to its Fund by BlackRock, BlackRock’s personnel and affiliates, including, as applicable; investment management, accounting, administrative, and shareholder services; oversight of the Fund’s service providers; marketing; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements.

Each Board, acting directly and through its committees, considers at each of its meetings, and from time to time as appropriate, factors that are relevant to its annual consideration of the renewal of the Agreement for its Fund, including the services and support provided by BlackRock to the Fund and its shareholders. BlackRock also furnished additional information to each Board in response to specific questions from the Board. This additional information is discussed further below in the section titled “Board Considerations in Approving the Agreements.” Among the matters each Board considered were: (a) investment performance for one-year, three-year, five-year, ten-year, and/or since inception periods, as applicable, against peer funds, applicable benchmarks, and performance metrics, as applicable, as well as senior management’s and portfolio managers’ analysis of the reasons for any over-performance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) leverage management, as applicable; (c) fees, including advisory, administration, if applicable, paid to BlackRock and its affiliates by the Fund for services; (d) Fund operating expenses and how BlackRock allocates expenses to the Fund; (e) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Fund’s investment objective(s), policies and restrictions, and meeting regulatory requirements; (f) the Fund’s adherence to its compliance policies and procedures; (g) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services; (h) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (i) BlackRock’s implementation of the proxy voting policies approved by the Board; (j) execution quality of portfolio transactions; (k) BlackRock’s implementation of the Fund’s valuation and liquidity procedures; (l) an analysis of management fees for products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Fund; (m) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (n) periodic updates on BlackRock’s business.

The Board of each of MEN, MHD, MUH, MUS, MUI and MVT considered BlackRock’s efforts during the past several years with regard to the redemption of outstanding auction rate preferred securities. Each of MEN, MHD, MUH, MUS, MUI and MVT has redeemed all of its outstanding auction rate preferred securities.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April Meeting, each Board requested and received materials specifically relating to the Agreement for its Fund. Each Board is continuously engaged in a process with its independent legal counsel and BlackRock to review the nature and scope of the information provided to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on Lipper classifications, regarding the Funds’ fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of the Funds’ as compared with a peer group of funds (“Performance Peers”) and other metrics, as applicable; (b) information on the composition of the Expense Peers and Performance Peers, and a description of the Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to each Fund’s Agreement and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, closed-end funds, and open-end funds, under similar investment mandates, as applicable; (e) review of non-management fees; (f) the existence and impact and sharing of potential economies of scale, if any, and the sharing of potential economies of scale with each Fund; (g) a summary of aggregate amounts paid by each Fund to BlackRock; and (h) various additional information requested by each Board as appropriate regarding BlackRock’s and the operations of its Fund.

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENTS      99  


Disclosure of Investment Advisory Agreements  (continued)

 

At the April Meeting, each Board reviewed materials relating to its consideration of the Agreement for its Fund. As a result of the discussions that occurred during the April Meeting, and as a culmination of each Board’s year-long deliberative process, each Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the June Meeting.

At the June Meeting, each Board considered, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Fund as compared with Performance Peers and other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Fund; (d) the Fund’s fees and expenses compared to Expense Peers; (e) the sharing of potential economies of scale; (f) fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Fund; and (g) other factors deemed relevant by the Board Members.

Each Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, services related to the valuation and pricing of Fund portfolio holdings, and advice from independent legal counsel with respect to the review process and materials submitted for the Board’s review. Each Board noted the willingness of BlackRock personnel to engage in open, candid discussions with the Board. Each Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: Each Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of its Fund. Throughout the year, each Board compared its Fund’s performance to the performance of a comparable group of closed-end funds, relevant benchmark, and performance metrics, as applicable. Each Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. Each Board also reviewed the materials provided by its Fund’s portfolio management team discussing the Fund’s performance and the Fund’s investment objective(s), strategies and outlook.

Each Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and its Fund’s portfolio management team; BlackRock’s research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. Each Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. Each Board engaged in a review of BlackRock’s compensation structure with respect to its Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, each Board considered the quality of the administrative and other non-investment advisory services provided to its Fund. BlackRock and its affiliates provide each Fund with certain administrative, shareholder, and other services (in addition to any such services provided to its Fund by third parties) and officers and other personnel as are necessary for the operations of the Fund. In particular, BlackRock and its affiliates provide each Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of the Fund; (iii) oversight of daily accounting and pricing; (iv) responsibility for periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers including, among others, the Fund’s custodian, fund accountant, transfer agent, and auditor; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; (viii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain closed-end funds; and (ix) performing administrative functions necessary for the operation of the Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: Each Board, including the Independent Board Members, also reviewed and considered the performance history of its Fund. In preparation for the April Meeting, each Board was provided with reports independently prepared by Broadridge, which included a comprehensive analysis of its Fund’s performance as of December 31, 2017. The performance information is based on net asset value (NAV), and utilizes Lipper data. Lipper’s methodology calculates a fund’s total return assuming distributions are reinvested on the ex-date at a fund’s ex-date NAV. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, each Board received and reviewed information regarding the investment performance of its Fund as compared to its Performance Peers and a custom peer group of funds as defined by BlackRock (“Customized Peer Group”). Each Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of the Fund throughout the year.

In evaluating performance, each Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. Further, each Board recognized that it is possible that long-term performance can be impacted by even one period of significant outperformance or underperformance, so that a single investment theme has the ability to affect long-term performance disproportionately.

The Board of MUA noted that for each of the one-, three- and five-year periods reported, MUA ranked second out of three funds against its Customized Peer Group Composite. BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MUA. The Composite measures a blend of total return and yield. The Board and BlackRock reviewed MUA’s underperformance during the applicable periods.

The Board of each of MEN and MUS noted that for each of the one-, three- and five-year periods reported, its Fund ranked first out of two funds against its Customized Peer Group Composite. BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MEN and MUS. The Composite measures a blend of total return and yield.

 

 

100    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Disclosure of Investment Advisory Agreements  (continued)

 

The Board of each of MHD and MVT noted that for the one-, three- and five-year periods reported, its Fund ranked in the second, second and first quartiles, respectively, against its Customized Peer Group Composite. BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MHD and MVT. The Composite measures a blend of total return and yield.

The Board of MUH noted that for the one-, three- and five-year periods reported, MUH ranked in the second, fourth and second quartiles, respectively, against its Customized Peer Group Composite. BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MUH. The Composite measures a blend of total return and yield. The Board and BlackRock reviewed the Fund’s underperformance during the applicable period. The Board was informed that, among other things, MUH’s short duration position was the primary detractor of performance over the three-year period.

The Board and BlackRock discussed BlackRock’s strategy for improving MUH’s investment performance. Discussions covered topics such as performance attribution, MUH’s investment personnel, and the resources appropriate to support the Fund’s investment processes.

The Board of MUI noted that for the one-, three- and five-year periods reported, MUI ranked in the third quartile, second quartile, and third out of four funds, respectively, against its Customized Peer Group Composite. BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MUI. The Composite measures a blend of total return and yield. The Board and BlackRock reviewed MUI’s underperformance during the applicable periods.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Funds: Each Board, including the Independent Board Members, reviewed its Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. Each Board also compared its Fund’s total expense ratio, as well as its actual management fee rate as a percentage of total assets, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, excluding any investment related expenses. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. Each Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

Each Board received and reviewed statements relating to BlackRock’s financial condition. Each Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to its Fund. Each Board reviewed BlackRock’s estimated profitability with respect to its Fund and other funds the Board currently oversees for the year ended December 31, 2017 compared to available aggregate estimated profitability data provided for the prior two years. Each Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. Each Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. Each Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. As a result, calculating and comparing profitability at individual fund levels is difficult.

Each Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. Each Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly-traded asset management firms. Each Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

In addition, each Board considered the estimated cost of the services provided to its Fund by BlackRock, and BlackRock’s and its affiliates’ estimated profits relating to the management of its Fund and the other funds advised by BlackRock and its affiliates. As part of its analysis, each Board reviewed BlackRock’s methodology in allocating its costs of managing its Fund, to the Fund. Each Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreement for its Fund and to continue to provide the high quality of services that is expected by the Board. Each Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing its Fund in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and institutional separate account product channels, as applicable.

The Board of each of MUA, MEN, MHD, MUH, MUS and MVT noted that its Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Expense Peers.

The Board of MUI noted that the Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the second and third quartiles, respectively, relative to the Expense Peers.

D. Economies of Scale: Each Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of its Fund increase. Each Board also considered the extent to which its Fund benefits from such economies in a variety of ways, and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable the Fund to more fully participate in these economies of scale. Each Board considered the Fund’s asset levels and whether the current fee was appropriate.

Based on each Board’s review and consideration of the issue, each Board concluded that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering. They are typically priced at scale at a fund’s inception.

E. Other Factors Deemed Relevant by the Board Members: Each Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with its Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Fund, including for administrative, securities lending and cash management services. Each Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. Each Board also noted that,

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENTS      101  


Disclosure of Investment Advisory Agreements  (continued)

 

subject to applicable law, BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreement for its Fund, each Board also received information regarding BlackRock’s brokerage and soft dollar practices. Each Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

Each Board noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their Fund shares in the secondary market if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Each Board also considered the various notable initiatives and projects BlackRock performed in connection with its closed-end fund product line. These initiatives included the completion of the redemption of auction rate preferred securities for all of the BlackRock closed-end funds; developing equity shelf programs; efforts to eliminate product overlap with fund mergers; ongoing services to manage leverage that has become increasingly complex; periodic evaluation of share repurchases and other support initiatives for certain BlackRock funds; and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members of each Fund noted BlackRock’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. BlackRock’s support services included, among other things: sponsoring and participating in conferences; communicating with closed-end fund analysts covering the BlackRock funds throughout the year; providing marketing and product updates for the closed-end funds; and maintaining and enhancing its closed-end fund website.

Conclusion

Each Board, including the Independent Board Members, unanimously approved the continuation of the Agreement between the Manager and its Fund for a one-year term ending June 30, 2019. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, each Board, including the Independent Board Members, was satisfied that the terms of the Agreement for its Fund were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Agreement for its Fund, each Board did not identify any single factor or group of factors as, all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members of each Fund were also assisted by the advice of independent legal counsel in making this determination.

 

 

102    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Director and Officer Information

 

Richard E. Cavanagh, Chair of the Board and Director

Karen P. Robards, Vice Chair of the Board and Director

Michael J. Castellano, Director

Cynthia L. Egan, Director

Frank J. Fabozzi, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director

Catherine A. Lynch, Director

Robert Fairbairn, Director

John M. Perlowski, Director, President and Chief Executive Officer

Jonathan Diorio, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

Janey Ahn, Secretary

 

Effective January 1, 2019, Henry Gabbay is appointed as an Independent Director of the Funds.

 

Investment Adviser

BlackRock Advisors, LLC

Wilmington, DE 19809

Transfer Agent

Computershare Trust Company, N.A.

Canton, MA 02021

VRDP Tender and Paying Agent and VMTP Redemption and Paying Agent

The Bank of New York Mellon

New York, NY 10289

VRDP Remarketing Agent

Citigroup Global Markets Inc.(a)

New York, NY 10179

 

VRDP Liquidity Provider

Citibank, N.A.(a)

New York, NY 10179

Accounting Agent and Custodian

State Street Bank and Trust Company

Boston, MA 02111

 

Independent Registered
Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

 

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom LLP

Boston, MA 02116

 

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

 

 

(a) 

For MEN.

 

 

DIRECTOR AND OFFICER INFORMATION      103  


Additional Information

 

Proxy Results

The Annual Meeting of Shareholders was held on July 30, 2018 for shareholders of record on May 31 2018, to elect director nominees for each Fund. There were no broker non-votes with regard to any of the Funds.

Shareholders elected the Class II Directors & Class III Director as follows:

 

  

 

  Frank J. Fabozzi (a)     Robert Fairbairn (b)     Catherine A. Lynch (a)     Karen P. Robards (a)  
     Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld  

MUA

    33,488,233       1,209,322       33,756,449       941,106       33,789,330       908,225       33,684,110       1,013,445  

For the Fund listed above, Directors whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are Michael J. Castellano, Richard E. Cavanagh, Cynthia L. Egan, R. Glenn Hubbard, John M. Perlowski and W. Carl Kester.

Shareholders elected the Directors as follows:

 

  

 

  Michael J. Castellano     Richard E. Cavanagh     Cynthia L. Egan  
     Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld  

MEN

    27,634,267       513,220       27,589,860       557,627       27,569,786       577,701  

MHD

    13,474,429       437,906       13,391,691       520,644       13,354,164       558,171  

MUH

    10,568,233       312,686       10,571,693       309,226       10,554,635       326,284  

MUS

    11,728,284       641,171       11,752,944       616,511       11,882,918       486,537  

MUI

    35,226,098       1,354,486       34,665,081       1,915,503       35,046,781       1,533,803  

MVT

    20,101,583       429,937       20,120,718       410,802       20,132,709       398,811  
           
  

 

  Robert Fairbairn     R. Glenn Hubbard     Catherine A. Lynch  
     Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld  

MEN

    27,613,423       534,064       27,427,438       720,049       27,620,062       527,425  

MHD

    13,521,103       391,232       13,299,291       613,044       13,354,164       558,171  

MUH

    10,681,032       199,887       10,579,982       300,937       10,559,027       321,892  

MUS

    11,903,256       466,199       11,850,559       518,896       11,802,381       567,074  

MUI

    35,449,820       1,130,764       34,520,591       2,059,993       35,114,369       1,466,215  

MVT

    20,181,036       350,484       20,109,953       421,567       20,138,622       392,898  
           
  

 

  John M. Perlowski     Karen P. Robards     Frank J. Fabozzi (c)     W. Carl Kester (c)  
     Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld  

MEN

    27,671,921       475,566       27,557,889       589,598       1,425       0       1,425       0  

MHD

    13,534,692       377,643       13,430,248       482,087       837       0       837       0  

MUH

    10,687,384       193,535       10,564,599       316,320       550       0       550       0  

MUS

    11,882,511       486,944       11,704,108       665,347       870       0       870       0  

MUI

    35,445,184       1,135,400       35,153,342       1,427,242       2,871       0       2,871       0  

MVT

    20,186,271       345,249       20,131,287       400,233       1,400       0       1,400       0  

 

  (a) 

Class II Director.

 
  (b) 

Class III Director.

 
  (C) 

Voted on by holders of Preferred Shares only.

 

Fund Certification

Certain Funds are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Funds filed with the SEC the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

Dividend Policy

Each Fund’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of 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 distributions 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.

 

 

104    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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 would delay or prevent a change of control of the Funds 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’ portfolios.

In accordance with Section 23(c) of the Investment Company Act of 1940, each Fund may from time to time purchase shares of its common stock in open market or in private transactions.

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisers, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with 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 SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

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 upon request and without charge (1) by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com; or by calling (800) 882-0052; and (2) on the SEC’s website at http://www.sec.gov.

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. 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 in this report.

 

 

ADDITIONAL INFORMATION      105  


Additional Information  (continued)

 

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.

 

 

106    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Glossary of Terms Used in this Report

 

Portfolio Abbreviations
AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BAM    Build America Mutual Assurance Co.
BARB    Building Aid Revenue Bonds
CAB    Capital Appreciation Bonds
COP    Certificates of Participation
EDA    Economic Development Authority
EDC    Economic Development Corp.
ERB    Education Revenue Bonds
FHA    Federal Housing Administration
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
GTD    Guaranteed
HFA    Housing Finance Agency
IDA    Industrial Development Authority
IDB    Industrial Development Board
ISD    Independent School District
LRB    Lease Revenue Bonds
M/F    Multi-Family
MRB    Mortgage Revenue Bonds
NPFGC    National Public Finance Guarantee Corp.
PSF    Permanent School Fund
Q-SBLF    Qualified School Bond Loan Fund
RB    Revenue Bonds
S/F    Single-Family
SONYMA    State of New York Mortgage Agency
 

 

 

GLOSSARY OF TERMS USED IN THIS REPORT      107  


This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. 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 short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

 

LOGO

 

CEMUNI7-10/18-SAR    LOGO


Item 2 –

Code of Ethics – Not Applicable to this semi-annual report

 

Item 3 –

Audit Committee Financial Expert – Not Applicable to this semi-annual report

 

Item 4 –

Principal Accountant Fees and Services – Not Applicable to this semi-annual report

 

Item 5 –

Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

 

Item 6 –

Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies

 

  (a)

Not Applicable to this semi-annual report

 

  (b)

As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

 

Item 10 –

Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

 

Item 11 –

Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

(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 –

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

 

Item 13 –

Exhibits attached hereto

(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(a)(4) – Not Applicable

(b) – Certifications – Attached hereto

 

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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/ John M. Perlowski                            
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniAssets Fund, Inc.

Date: January 4, 2019

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/ John M. Perlowski                            
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniAssets Fund, Inc.

Date: January 4, 2019

 

By:     /s/ Neal J. Andrews                                
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniAssets Fund, Inc.

Date: January 4, 2019

 

 

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