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 52 nd 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: 04/30/2019


Item 1 – Report to Stockholders


APRIL 30, 2019

 

ANNUAL REPORT

  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)

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call Computershare at (800) 699-1236 to request that you continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC or its affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

In the 12 months ended April 30, 2019, the U.S. equity and bond markets posted positive returns while weathering significant volatility. Though the market’s appetite for risk remained healthy for most of the reporting period, risk taking declined sharply in late 2018. Thereafter, global equity markets rebounded strongly, as inflation diminished and the U.S. Federal Reserve (the “Fed”) announced a shift to less restrictive monetary policy.

Volatility rose in emerging market stocks, as the rising U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. 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 also led to negative performance for European equities. However, recent economic data indicates that Europe may emerge from its economic soft patch, reinvigorated by a manufacturing rebound and China’s economic stimulus.

In the U.S. equity market, volatility spiked in October, as a wide range of risks were brought to bear on markets, ranging from rising interest rates and slowing global growth to heightened trade tensions and political turmoil in several countries, including the United States. These risks manifested in a broad-based sell-off in December, leading to the worst December performance on record since 1931.

By comparison, fixed-income securities delivered modest positive returns with relatively low volatility. In fixed-income markets, short-term U.S. Treasury yields rose, while longer-term yields declined slightly. This led to positive returns for U.S. Treasuries and a substantial flattening of the yield curve. Investment-grade and high-yield corporate bonds also posted positive returns, as the credit fundamentals in corporate markets remained relatively solid.

The Fed shifted to a more patient perspective on the economy after increasing interest rates three times. In its last four meetings, the Fed left interest rates unchanged and signaled a slower pace of rate hikes in response to the global economic slowdown. Relatively low inflation and modest economic growth give the Fed room to maintain support for the economy until the economic data builds the case for changing interest rates. Similarly, the European Central Bank signaled a continuation of accommodative monetary policy, while China committed to looser credit conditions and an increase in fiscal spending. The shift toward more stimulative economic policy helped equity markets rebound in 2019.

We continue to believe the probability of recession in 2019 remains relatively low. Economic growth and global earnings are likely to slow somewhat in 2019 because the tax cut stimulus will be less pronounced, and the Fed’s rate hikes in 2018 will gain traction in 2019. We expect profit margins to continue to contract, which tends to happen late in the business cycle.

In this environment, U.S. and emerging market equities remain relatively attractive. Within U.S. equities, we believe that companies with high-quality earnings and strong balance sheets offer the most attractive risk/reward trade-off. For bonds, U.S. Treasuries are likely to help buffer against volatility in risk assets, while income from other types of bonds can continue to offer steady returns.

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 April 30, 2019
     6-month   12-month

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

  9.76%   13.49%

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

  6.06   4.61

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

  7.45   (3.22)

Emerging market equities
(MSCI Emerging Markets Index)

  13.76   (5.04)

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

  1.18   2.18

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

  7.09   6.44

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

  5.49   5.29

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

  5.36   5.84

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

  5.54   6.74
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    T HIS P AGE IS NOT P ART OF Y OUR F UND R EPORT


Table of Contents

 

      Page  

The Markets in Review

     2  

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

     70  

Statements of Operations

     72  

Statements of Changes in Net Assets

     74  

Statements of Cash Flows

     78  

Financial Highlights

     80  

Notes to Financial Statements

     87  

Report of Independent Registered Public Accounting Firm

     98  

Automatic Dividend Reinvestment Plan

     99  

Director and Officer Information

     100  

Additional Information

     103  

Glossary of Terms Used in this Report

     105  

 

 

          3  


Municipal Market Overview   For the Reporting Period Ended April 30, 2019

 

Municipal Market Conditions

Municipal bonds experienced solid performance during the period, despite challenged total returns during most of 2018 as interest rates moved higher on the back of continued Fed policy normalization, fiscal stimulus, strong economic growth, and increased U.S. Treasury issuance. Performance turned stronger late in the year, with interest rates rallying as the Fed tilted more dovish and indicated a pivot from forecast based to data driven policy and a wait-and-see approach on future rate hikes. During the period, demand for the asset class remained incredibly firm, although displayed some bouts of volatility. Broadly, investors favored the tax-exempt income, diversification, quality, and value of municipal bonds given that tax reform ultimately lowered the top individual tax rate just 2.6% while eliminating deductions. During the 12 months ended April 30, 2019, municipal bond funds experienced net inflows of approximately $27.8 billion (based on data from the Investment Company Institute).

 

 

For the same 12-month period, total new issuance underwhelmed from a historical perspective at just $321 billion (below the $385 billion issued in the prior 12-month period), a direct result of the elimination of advanced refundings through the 2017 Tax Cuts and Jobs Act. This transitioned the market to a favorable net negative supply environment in which reinvestment income (coupons, calls, and maturities) largely outstripped gross issuance and provided a powerful technical tailwind.

  S&P Municipal Bond Index

Total Returns as of April 30, 2019

  6 months: 5.36%

12 months: 5.84%

A Closer Look at Yields

 

LOGO

From April 30, 2018 to April 30, 2019, yields on AAA-rated 30-year municipal bonds decreased by 54 basis points (“bps”) from 3.09% to 2.55%, while ten-year rates decreased by 63 bps from 2.49% to 1.86% and five-year rates decreased by 56 bps from 2.19% to 1.63% (as measured by Thomson Municipal Market Data). As a result, the municipal yield curve flattened over the 12-month period with the spread between two- and 30-year maturities flattening by 24 bps, led by 33 bps of flattening between two- and ten-year maturities.

During the same time period, on a relative basis, tax-exempt municipal bonds strongly outperformed U.S. Treasuries, driven by the long end 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 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 April 30, 2019 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    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


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 (after paying the leverage costs) is paid to shareholders in the form of dividends, and the value of these portfolio holdings (less the leverage liability) 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 amount 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.

 

 

T HE B ENEFITS AND R ISKS OF L EVERAGING / D ERIVATIVE F INANCIAL I NSTRUMENTS      5  


Fund Summary   as of April 30, 2019    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 S&P Global (“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 April 30, 2019 ($14.98) (a)

  4.37%

Tax Equivalent Yield (b)

  7.38%

Current Monthly Distribution per Common Share (c)

  $0.0545

Current Annualized Distribution per Common Share (c)

  $0.6540

Leverage as of April 30, 2019 (d)

  12%

 

  (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUA (a)(b)

    19.07      5.97

Lipper High Yield Municipal Debt Funds (c)

    10.95        6.63  

 

  (a)  

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

 
  (b)  

The Fund moved from a discount to NAV to a premium 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 date 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:

After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full 12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.

Long-dated securities on the lower end of the investment grade spectrum (those rated BBB or unrated) were the largest contributors to performance. At the sector level, holdings in health care, transportation and tobacco issues were key contributors. The Fund’s holdings in Puerto Rico also aided results.

The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a small, negative effect on returns.

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    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Fund Summary   as of April 30, 2019 (continued)    BlackRock MuniAssets Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/19     

04/30/18

     Change      High      Low  

Market Price

   $ 14.98      $ 13.21        13.40    $ 15.34      $ 12.51  

Net Asset Value

     14.14        14.01        0.93        14.14        13.74  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/19    

04/30/18

 

Transportation

    18     15

County/City/Special District/School District

    18       17  

Health

    17       22  

Tobacco

    15       16  

Utilities

    13       9  

Education

    8       10  

Corporate

    4       6  

Housing

    4       2  

State

    3       3  

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,

       

2019

    15

2020

    11  

2021

    18  

2022

    8  

2023

    15  

 

  (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   04/30/19    

04/30/18

 

AAA/Aaa

        1

AA/Aa

    19       18  

A

    10       7  

BBB/Baa

    19       21  

BB/Ba

    8       12  

B

    11       19  

CCC/Caa

          1  

CC

    3        

N/R (b)

    30       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 April 30, 2019 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 2% and 1%, respectively, of the Fund’s total investments.

 
 

 

 

F UND S UMMARY      7  


Fund Summary   as of April 30, 2019    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 April 30, 2019 ($10.71) (a)

  4.93%

Tax Equivalent Yield (b)

  8.33%

Current Monthly Distribution per Common Share (c)

  $0.0440

Current Annualized Distribution per Common Share (c)

  $0.5280

Leverage as of April 30, 2019 (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 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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MEN (a)(b)

    7.98      8.43

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

    10.02        6.95  

 

  (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 date 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:

After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full 12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.

The rally in municipal bond prices provided a tailwind for the Fund. Portfolio income was also a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of both income and rising bond prices. However, the cost of leverage increased during the period due to the Fed’s three interest rate increases.

During the latter part of the period, municipal investors began to reach for yield amid a strong backdrop for both fundamentals and supply-and-demand factors. In this environment, the Fund benefited from allocations to the long end of the yield curve, lower-rated investment-grade bonds, and both low- and zero-coupon bonds.

At the sector level, positions in the state tax-backed, health care and transportation issues made the largest contribution to performance.

The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a small, negative effect on returns.

Reinvestment had an adverse effect 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.

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    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Fund Summary   as of April 30, 2019 (continued)    BlackRock MuniEnhanced Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/19     

04/30/18

     Change      High      Low  

Market Price

   $ 10.71      $ 10.48        2.19    $ 10.85      $ 9.63  

Net Asset Value

     11.76        11.46        2.62        11.77        11.06  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/19    

04/30/18

 

Transportation

    24     24

Health

    16       14  

County/City/Special District/School District

    15       17  

State

    15       16  

Utilities

    11       13  

Education

    7       9  

Housing

    6       2  

Corporate

    4       3  

Tobacco

    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,

       

2019

    10

2020

    3  

2021

    11  

2022

    8  

2023

    7  

 

  (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   04/30/19    

04/30/18

 

AAA/Aaa

    6     7

AA/Aa

    46       51  

A

    28       23  

BBB/Baa

    14       13  

BB/Ba

    2       2  

N/R

    4       4 (b)  

 

  (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 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.

 
 

 

 

F UND S UMMARY      9  


Fund Summary   as of April 30, 2019    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 April 30, 2019 ($15.92) (a)

  5.09%

Tax Equivalent Yield (b)

  8.60%

Current Monthly Distribution per Common Share (c)

  $0.0675

Current Annualized Distribution per Common Share (c)

  $0.8100

Leverage as of April 30, 2019 (d)

  37%

 

  (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MHD (a)(b)

    12.51      6.84

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

    10.02        6.95  

 

  (a)  

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

 
  (b)  

The Fund’s discount to NAV narrowed 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 date 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:

After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full 12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.

Long-dated securities on the lower end of the investment grade spectrum (those rated A and BBB) were the largest contributors to performance. At the sector level, holdings in tax-backed, transportation and health care issues were key contributors.

The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a small, negative effect on returns.

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    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Fund Summary   as of April 30, 2019 (continued)    BlackRock MuniHoldings Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/19     

04/30/18

     Change      High      Low  

Market Price

   $ 15.92      $ 14.98        6.28    $ 16.38      $ 13.89  

Net Asset Value

     16.56        16.41        0.91        16.58        15.92  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/19    

04/30/18

 

Transportation

    25     24

Health

    16       18  

Utilities

    14       14  

County/City/Special District/School District

    13       12  

State

    10       11  

Education

    8       9  

Tobacco

    7       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,

       

2019

    16

2020

    12  

2021

    12  

2022

    11  

2023

    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   04/30/19    

04/30/18

 

AAA/Aaa

    4     3

AA/Aa

    39       44  

A

    22       20  

BBB/Baa

    15       15  

BB/Ba

    3       4  

B/B

    5       4  

N/R (b)

    12       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 April 30, 2019 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 2% and 1%, respectively, of the Fund’s total investments.

 
 

 

 

F UND S UMMARY      11  


Fund Summary   as of April 30, 2019    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 April 30, 2019 ($15.05) (a)

  4.90%

Tax Equivalent Yield (b)

  8.28%

Current Monthly Distribution per Common Share (c)

  $0.0615

Current Annualized Distribution per Common Share (c)

  $0.7380

Leverage as of April 30, 2019 (d)

  38%

 

  (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUH (a)(b)

    16.00      7.46

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

    10.02        6.95  

 

  (a)  

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

 
  (b)  

The Fund’s discount to NAV narrowed 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 date 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:

After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full 12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.

The rally in municipal bond prices provided a tailwind for the Fund. Portfolio income was also a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of both income and rising bond prices. However, the cost of leverage increased during the period due to the Fed’s three interest rate increases.

During the latter part of the period, municipal investors began to reach for yield amid a strong backdrop for both fundamentals and supply-and-demand factors. In this environment, the Fund benefited from allocations to the long end of the yield curve, lower-rated investment-grade bonds, and both low- and zero-coupon bonds.

At the sector level, positions in the state tax-backed, health care and transportation issues made the largest contribution to performance.

The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a small, negative effect on returns.

The Fund’s allocation to pre-refunded bonds, while providing income and dampening risk, produced more muted returns than the overall market due to their lower sensitivity to yield movements.

Reinvestment had an adverse effect 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.

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    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Fund Summary   as of April 30, 2019 (continued)    BlackRock MuniHoldings Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/19     

04/30/18

     Change      High      Low  

Market Price

   $ 15.05      $ 13.75        9.45    $ 15.20      $ 12.62  

Net Asset Value

     15.32        15.11        1.39        15.32        14.63  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/19    

04/30/18

 

Transportation

    22     20

Health

    17       20  

County/City/Special District/School District

    16       13  

Utilities

    12       10  

State

    11       15  

Housing

    7       2  

Tobacco

    6       6  

Corporate

    5       5  

Education

    4       9  

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,

       

2019

    14

2020

    11  

2021

    11  

2022

    7  

2023

    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   04/30/19    

04/30/18

 

AAA/Aaa

    4     4

AA/Aa

    41       46  

A

    22       20  

BBB/Baa

    15       14  

BB/Ba

    2       4  

B/B

    4       4  

CC

    1        

N/R (b)

    11       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 April 30, 2019 and April 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 2% of the Fund’s total investments.

 
 

 

 

F UND S UMMARY      13  


Fund Summary   as of April 30, 2019    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 April 30, 2019 ($12.01) (a)

  4.45%

Tax Equivalent Yield (b)

  7.52%

Current Monthly Distribution per Common Share (c)

  $0.0445

Current Annualized Distribution per Common Share (c)

  $0.5340

Leverage as of April 30, 2019 (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUS (a)(b)

    2.02      6.59

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

    10.02        6.95  

 

  (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 date 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:

After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full 12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.

The rally in municipal bond prices provided a tailwind for the Fund. Portfolio income was also a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of both income and rising bond prices. However, the cost of leverage increased during the period due to the Fed’s three interest rate increases.

The Fund’s positions in the state tax-backed and transportation sectors contributed to performance. Holdings in longer-term bonds, which outperformed short- and intermediate-term issues, also added value.

The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a small, negative effect on returns.

Reinvestment had an adverse effect 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.

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    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Fund Summary   as of April 30, 2019 (continued)    BlackRock MuniHoldings Quality Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/19     

04/30/18

     Change      High      Low  

Market Price

   $ 12.01      $ 12.40        (3.15 )%     $ 12.57      $ 11.09  

Net Asset Value

     13.51        13.35        1.20        13.52        12.92  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/19    

04/30/18

 

Transportation

    34     31

County/City/Special District/School District

    20       26  

State

    13       8  

Utilities

    11       14  

Education

    9       7  

Health

    8       8  

Tobacco

    2       2  

Housing

    2       3  

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  (c)

 

Calendar Year Ended December 31,

       

2019

    10

2020

    4  

2021

    18  

2022

    2  

2023

    18  

 

  (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   04/30/19    

04/30/18

 

AAA/Aaa

    3     6

AA/Aa

    48       52  

A

    32       28  

BBB/Baa

    11       10  

N/R

    6 (b)       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 April 30, 2019 the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 2% of the Fund’s total investments.

 
 

 

 

F UND S UMMARY      15  


Fund Summary   as of April 30, 2019    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 April 30, 2019 ($13.85) (a)

  3.86%

Tax Equivalent Yield (b)

  6.52%

Current Monthly Distribution per Common Share (c)

  $0.0445

Current Annualized Distribution per Common Share (c)

  $0.5340

Leverage as of April 30, 2019 (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUI (a)(b)

    11.13      7.68

Lipper Intermediate Municipal Debt Funds (c)

    7.21        5.41  

 

  (a)  

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

 
  (b)  

The Fund’s discount to NAV narrowed 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 date 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:

After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full 12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.

The rally in municipal bond prices provided a tailwind for the Fund. Portfolio income was also a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of both income and rising bond prices. However, the cost of leverage increased during the period due to the Fed’s three interest rate increases.

The Fund’s positions in the transportation and state tax-backed sectors contributed to performance. Holdings in bonds with maturities of 10 to 18 years, which outperformed shorter-term issues, also added value.

Lower-quality bonds outpaced higher-quality issues during the period. As a result, positions in A and BBB rated securities were key contributors.

The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a small, negative effect on returns.

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.

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    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Fund Summary   as of April 30, 2019 (continued)    BlackRock Muni Intermediate Duration Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/19     

04/30/18

     Change      High      Low  

Market Price

   $ 13.85      $ 13.01        6.46    $ 13.92      $ 12.30  

Net Asset Value

     15.40        14.93        3.15        15.41        14.63  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/19    

04/30/18

 

Transportation

    30     27

County/City/Special District/School District

    15       17  

Health

    13       10  

State

    12       16  

Education

    12       12  

Utilities

    10       9  

Tobacco

    4       3  

Corporate

    2       5  

Housing

    2       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,

       

2019

    5

2020

    7  

2021

    14  

2022

    5  

2023

    13  

 

  (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   04/30/19    

04/30/18

 

AAA/Aaa

    5     5

AA/Aa

    33       37  

A

    35       32  

BBB/Baa

    17       18  

BB/Ba

    2       2  

B

    2       1  

N/R (b)

    6       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 April 30, 2019 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.

 
 

 

 

F UND  S UMMARY      17  


Fund Summary   as of April 30, 2019    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 April 30, 2019 ($14.29) (a)

  5.00%

Tax Equivalent Yield (b)

  8.45%

Current Monthly Distribution per Common Share (c)

  $0.0595

Current Annualized Distribution per Common Share (c)

  $0.7140

Leverage as of April 30, 2019 (d)

  37%

 

  (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MVT (a)(b)

    7.78      6.83

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

    10.02        6.95  

 

  (a)  

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

 
  (b)  

The Fund’s discount to NAV narrowed 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 date 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:

After performing poorly through the end of October, municipal bonds recovered to post a positive total return for the full 12-month period. The initial weakness was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of a more accommodative Fed policy, sparking a rally across the bond market from early November onward. Volatility in equities and uncertainty surrounding U.S. trade policy also helped fuel a “flight to quality” into the fixed-income markets.

Long-dated securities on the lower end of the investment grade spectrum (those rated A and BBB) were the largest contributors to performance. At the sector level, holdings in transportation, health care and tax-backed issues were key contributors.

The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as price rose, this strategy had a small, negative effect on returns.

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    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Fund Summary   as of April 30, 2019 (continued)    BlackRock MuniVest Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/19     

04/30/18

     Change      High      Low  

Market Price

   $ 14.29      $ 14.05        1.71    $ 14.95      $ 12.75  

Net Asset Value

     14.87        14.75        0.81        14.88        14.29  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector Allocation   04/30/19    

04/30/18

 

Transportation

    24     29

Health

    18       18  

Utilities

    14       13  

County/City/Special District/School District

    13       9  

State

    9       12  

Education

    8       6  

Tobacco

    7       6  

Corporate

    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,

       

2019

    12

2020

    11  

2021

    11  

2022

    10  

2023

    7  

 

  (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   04/30/19    

04/30/18

 

AAA/Aaa

    4     4

AA/Aa

    34       42  

A

    25       20  

BBB/Baa

    19       18  

BB/Ba

    3       5  

B

    4       5  

C

    1        

N/R (b)

    10       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 April 30, 2019 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.

 
 

 

 

F UND S UMMARY      19  


Schedule of Investments

April 30, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 89.1%

 

Alabama — 1.5%  

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

  $ 3,745     $ 4,359,708  

County of Tuscaloosa IDA, Refunding RB, Hunt Refining Project, Series A (a)(b) :

   

4.50%, 05/01/32

    380       400,417  

5.25%, 05/01/44

    485       519,561  

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

    2,165       2,298,862  
   

 

 

 
    7,578,548  
Alaska — 1.1%  

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

   

4.63%, 06/01/23

    190       190,051  

5.00%, 06/01/32

    1,500       1,499,940  

5.00%, 06/01/46

    4,290       4,186,611  
   

 

 

 
    5,876,602  
Arizona — 2.8%  

Arizona IDA, RB, Series A (b) :

   

Doral Academy of Nevada-Fire Mesa, 5.00%, 07/15/39

    520       556,031  

Lone Mountain Campus Project, 5.00%, 12/15/39

    250       265,815  

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

   

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

    960       1,024,790  

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

    1,500       1,509,690  

City of Phoenix Arizona IDA, RB:

   

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

    425       467,632  

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

    500       549,095  

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

    570       648,666  

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

    1,000       1,133,070  

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

   

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

    305       322,525  

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

    855       889,405  

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

    260       274,940  

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

    290       301,510  

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

    320       337,850  

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

    255       264,841  

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

    875       888,466  

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

    1,650       2,078,010  

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

    665       683,939  

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

    1,765       1,870,688  
   

 

 

 
    14,066,963  
California — 6.3%  

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

   

5.50%, 08/01/34

    315       319,486  

6.00%, 08/01/44

    665       682,037  

6.13%, 08/01/49

    580       596,803  

California School Finance Authority, RB:

   

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

    1,570       1,777,193  

Value Schools, 6.65%, 07/01/33

    435       485,316  

Value Schools, 6.90%, 07/01/43

    975       1,084,366  

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

   

5.25%, 12/01/38

    580       661,229  
Security   Par
(000)
    Value  
California (continued)  

Series A, 5.00%, 12/01/46

  $ 725     $ 787,887  

Series A, 5.25%, 12/01/56

    620       681,045  

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

    2,175       2,215,063  

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

    1,650       1,659,586  

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

   

0.00%, 08/01/26

    1,250       910,113  

0.00%, 08/01/43

    1,500       459,765  

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

   

6.50%, 05/01/36

    900       982,368  

6.50%, 05/01/42

    2,220       2,423,618  

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

    375       442,073  

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

   

5.70%, 06/01/46

    3,600       3,601,440  

5.60%, 06/01/36

    1,285       1,285,874  

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

    2,885       3,169,807  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1:

   

5.00%, 06/01/47

    790       773,165  

5.25%, 06/01/47

    610       613,758  

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

   

4.75%, 06/01/25

    880       885,130  

5.00%, 06/01/37

    5,580       5,612,531  
   

 

 

 
    32,109,653  
Colorado — 1.4%  

9th Avenue Metropolitan District No. 2, GOL, 5.00%, 12/01/48

    910       933,624  

Arista Metropolitan District, GO, Refunding, Series A, 5.00%, 12/01/38

    1,240       1,276,196  

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

    500       549,840  

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

    575       591,859  

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

    720       754,142  

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

    500       502,745  

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

    760       774,774  

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

    1,500       1,556,670  
   

 

 

 
    6,939,850  
Connecticut — 0.9%  

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

    1,400       1,448,076  

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

    971       1,034,321  

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

    1,835       2,025,546  
   

 

 

 
    4,507,943  
 

 

 

20    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

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     $ 1,054,230  

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

    3,180       3,296,261  
   

 

 

 
    4,350,491  
District of Columbia — 0.5%  

Metropolitan Washington Airports Authority, Refunding ARB, Dulles Metrorail And Capital Improvement Projects, Series A, 5.00%, 10/01/53

    2,260       2,396,301  
   

 

 

 
Florida — 9.3%  

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

    1,420       1,436,415  

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

    1,495       1,511,101  

Capital Trust Agency, Inc., RB, Series A:

   

1st Mortgage, Silver Creek St. Augustine Project, 8.25%, 01/01/44 (e)(f)

    515       360,500  

1st Mortgage, Silver Creek St. Augustine Project, 8.25%, 01/01/49 (e)(f)

    1,105       773,500  

Paragon Academy of Technology and Sunshine, 5.75%, 06/01/54 (b)

    940       942,087  

Silver Creek St. Augustine Project, 5.75%, 01/01/50 (e)(f)

    655       622,250  

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

    630       632,148  

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

    915       974,713  

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

    500       560,300  

Florida Development Finance Corp., RB:

   

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

    690       738,769  

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

    835       893,233  

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

    3,180       3,374,966  

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

    1,550       1,610,078  

Florida Development Finance Corp., Refunding RB, Virgin Trains USA Passenger Rail Project, Series A, AMT (b)(g) :

   

6.38%, 01/01/49

    815       836,402  

6.50%, 01/01/49

    1,570       1,608,575  

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

    1,115       1,188,668  

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

    1,785       1,806,509  

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

    370       371,373  

Lakewood Ranch Stewardship District, Special Assessment Bonds (b) :

   

Lakewood Centre & NW Sector Projects, 4.95%, 05/01/29

    425       439,582  

Lakewood Centre & NW Sector Projects, 5.50%, 05/01/39

    425       447,763  

Lakewood Centre & NW Sector Projects, 5.65%, 05/01/48

    665       700,511  

Northeast Sector Project — Phase 1B, 4.75%, 05/01/29

    565       586,114  

Northeast Sector Project — Phase 1B, 5.30%, 05/01/39

    645       672,451  

Northeast Sector Project — Phase 1B, 5.45%, 05/01/48

    1,150       1,211,134  

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

    100       100,709  

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

    1,485       1,644,073  
Security   Par
(000)
    Value  
Florida (continued)  

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

   

4.25%, 05/01/26

  $ 135     $ 137,280  

5.13%, 05/01/46

    825       845,444  

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

    4,550       5,137,723  

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

   

Series A, 5.00%, 05/01/37

    845       881,005  

Series B, 5.00%, 05/01/37

    495       516,092  

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

    3,743       2,788,860  

Tolomato Community Development District, Refunding, Special Assessment Bonds:

   

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

    580       580,267  

Convertible CAB, Series A4, 6.61%, 05/01/40 (h)

    305       254,437  

Series 2015-2, 6.61%, 05/01/40 (h)

    805       542,490  

Tolomato Community Development District (e)(f) :

   

Series 1, 6.61%, 05/01/40 (h)

    1,305       1,070,974  

Series 1, 6.65%, 05/01/40

    50       50,049  

Series 3, 6.61%, 05/01/40

    875       9  

Series 3, 6.65%, 05/01/40

    710       7  

Trout Creek Community Development District, Special Assessment Bonds:

   

5.38%, 05/01/38

    430       447,901  

5.50%, 05/01/49

    1,105       1,152,272  

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

   

6.75%, 05/01/31

    1,460       1,577,778  

7.00%, 05/01/41

    2,400       2,640,264  

5.50%, 05/01/42

    1,155       1,220,858  

West Villages Improvement District, Special Assessment Bonds:

   

4.75%, 05/01/39

    455       453,835  

5.00%, 05/01/50

    940       942,200  
   

 

 

 
    47,283,669  
Georgia — 1.8%  

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

    3,365       3,605,699  

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

   

6.38%, 11/15/19

    700       717,500  

6.63%, 11/15/19

    880       903,118  

Main Street Natural Gas, Inc., RB, Series A:

   

5.00%, 05/15/35

    560       677,617  

5.00%, 05/15/36

    560       678,675  

5.00%, 05/15/37

    615       746,321  

5.00%, 05/15/38

    340       413,511  

5.00%, 05/15/49

    1,130       1,413,720  
   

 

 

 
    9,156,161  
Guam — 0.2%  

Territory of Guam, GO, Series A:

   

6.00%, 11/15/19

    140       142,871  

7.00%, 11/15/19 (c)

    1,115       1,147,369  
   

 

 

 
    1,290,240  
Illinois — 6.5%  

Chicago Board of Education, GO:

   

Series A, 5.00%, 12/01/42

    1,020       1,046,051  

5.00%, 12/01/46

    600       628,830  

5.00%, 12/01/46

    1,555       1,599,768  

Chicago Board of Education, GO, Dedicated Revenues, Series D:

   

Refunding, 5.00%, 12/01/31

    1,000       1,086,090  
 

 

 

S CHEDULES   OF  I NVESTMENTS      21  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

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

  $ 2,150     $ 2,262,682  

Series H, 5.00%, 12/01/46

    720       756,490  

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

    1,655       1,755,806  

Chicago Board of Education, GO, Refunding:

   

5.00%, 12/01/27

    900       981,270  

Series B, 4.00%, 12/01/35

    745       700,650  

Series C, 5.00%, 12/01/25

    725       783,094  

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

    1,260       1,435,820  

Illinois Finance Authority, Refunding RB:

   

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

    4,000       4,173,120  

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

    780       768,557  

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

    365       396,087  

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

    860       925,154  

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

    785       800,684  

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

    1,215       1,239,276  

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

   

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

    5,005       902,402  

5.50%, 06/15/53

    2,370       2,578,939  

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

    6,980       1,383,855  

Railsplitter Tobacco Settlement Authority, RB (c) :

   

5.50%, 06/01/21

    180       194,076  

6.00%, 06/01/21

    710       772,750  

State of Illinois, GO:

   

Refunding, Series B, 5.00%, 10/01/29

    1,975       2,183,659  

Series A, 5.00%, 01/01/33

    740       763,162  

Series D, 5.00%, 11/01/28

    1,365       1,507,847  

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

    1,583       1,585,786  
   

 

 

 
    33,211,905  
Indiana — 2.4%  

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

   

6.75%, 01/01/34

    825       951,811  

7.00%, 01/01/44

    2,000       2,325,520  

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

    2,175       2,220,327  

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

   

6.63%, 01/15/34

    290       310,607  

6.75%, 01/15/43

    525       558,920  

6.88%, 01/15/52

    2,450       2,613,048  

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

   

5.00%, 07/01/44

    470       506,956  

5.00%, 07/01/48

    1,555       1,673,724  

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

    1,190       1,234,887  
   

 

 

 
    12,395,800  
Iowa — 2.0%  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

Series B, 5.25%, 12/01/50 (g)

    2,085       2,234,432  

Midwestern Disaster Area, 5.25%, 12/01/25

    2,190       2,359,484  

Iowa Tobacco Settlement Authority, Refunding RB:

   

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

    795       789,045  

Series C, 5.38%, 06/01/38

    4,900       4,840,073  
   

 

 

 
    10,223,034  
Security   Par
(000)
    Value  
Kentucky — 0.9%  

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

  $ 4,000     $ 4,361,880  
   

 

 

 
Louisiana — 2.0%  

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

    2,445       2,491,015  

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

    1,745       1,831,500  

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

    5,570       6,056,261  
   

 

 

 
    10,378,776  
Maine — 0.6%  

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

    2,955       3,192,346  
   

 

 

 
Maryland — 1.2%  

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

    2,835       2,854,335  

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

    3,085       3,173,478  
   

 

 

 
    6,027,813  
Massachusetts — 1.0%  

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

   

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

    1,025       1,088,417  

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

    2,020       2,417,132  

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

   

6.75%, 01/01/21

    895       968,506  

6.75%, 01/01/21

    595       643,867  
   

 

 

 
    5,117,922  
Michigan — 1.4%  

City of Detroit Michigan, GO:

   

5.00%, 04/01/34

    285       307,783  

5.00%, 04/01/35

    285       306,908  

5.00%, 04/01/36

    200       214,698  

5.00%, 04/01/37

    320       342,051  

5.00%, 04/01/38

    145       154,793  

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

    2,785       3,015,570  

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

    415       443,784  

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

    920       984,097  

Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.00%, 06/30/48

    1,200       1,368,300  
   

 

 

 
    7,137,984  
Minnesota — 0.1%  

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

   

5.75%, 09/01/46

    195       211,076  

6.00%, 09/01/51

    290       317,454  
   

 

 

 
    528,530  
Missouri — 0.8%  

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

   

4.38%, 11/15/35

    685       706,057  

4.75%, 11/15/47

    760       785,262  

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

    2,315       2,467,559  
   

 

 

 
    3,958,878  
 

 

 

22    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
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     $ 1,027,789  

Series C, AMT, 4.88%, 11/01/42

    485       494,758  
   

 

 

 
    1,522,547  
New Jersey — 4.6%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,065       1,146,430  

5.25%, 11/01/44

    770       827,688  

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

    1,150       1,157,659  

New Jersey EDA, RB:

   

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

    2,155       2,379,077  

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

    2,160       2,470,270  

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

    165       180,923  

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

    260       282,183  

State House Project, Series B, Remark 10, 5.00%, 06/15/43

    2,245       2,460,632  

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

    1,530       1,687,713  

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

    500       510,300  

New Jersey Transportation Trust Fund Authority, RB, Transportation Program:

   

Series AA, 5.25%, 06/15/41

    1,140       1,239,134  

Series S, 5.25%, 06/15/43

    2,345       2,637,234  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Sub-Series B, 5.00%, 06/01/46

    5,970       6,226,471  
   

 

 

 
    23,205,714  
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       3,180,929  
   

 

 

 
New York — 6.1%  

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

   

6.25%, 06/01/41 (b)

    5,300       5,429,214  

5.00%, 06/01/42

    3,155       3,083,066  

5.00%, 06/01/45

    1,185       1,150,007  

Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through, Series A-2B:

   

5.00%, 06/01/45

    2,655       2,782,174  

5.00%, 06/01/51

    1,900       1,936,214  

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

    970       970,039  

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

    1,286       1,397,470  

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

    2,890       2,851,447  

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       1,310,373  

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

    4,705       5,062,251  

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

    455       501,524  

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

    1,080       1,186,099  

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

    1,565       1,844,212  
Security   Par
(000)
    Value  
New York (continued)  

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     $ 1,418,779  
   

 

 

 
    30,922,869  
North Carolina — 0.5%  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A (c) :

   

7.75%, 03/01/21

    1,000       1,106,440  

7.75%, 03/01/21

    1,420       1,571,145  
   

 

 

 
    2,677,585  
Ohio — 3.1%  

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

   

6.00%, 06/01/42

    3,040       2,988,563  

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

    6,745       6,390,618  

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

    5,570       5,277,575  

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

    875       914,751  
   

 

 

 
    15,571,507  
Oklahoma — 1.4%  

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

    750       844,148  

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

   

5.00%, 08/15/38

    2,990       3,362,823  

5.25%, 08/15/43

    2,690       3,062,726  
   

 

 

 
    7,269,697  
Oregon — 0.6%  

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

    1,765       1,898,893  

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

   

5.13%, 07/01/35

    620       647,063  

5.38%, 07/01/45

    385       401,882  
   

 

 

 
    2,947,838  
Pennsylvania — 2.4%  

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

    2,140       2,221,448  

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

    2,000       2,158,340  

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

    1,800       1,823,706  

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

    1,135       1,150,107  

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

    1,945       2,183,282  

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

    2,710       2,847,424  
   

 

 

 
    12,384,307  
Puerto Rico — 4.5%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43

    850       859,324  

Commonwealth of Puerto Rico, GO, Refunding (e) (f) :

   

Public Improvement, 5.00%, 07/01/18

    90       65,025  
 

 

 

S CHEDULES   OF  I NVESTMENTS      23  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Puerto Rico (continued)  

Public Improvement, Series A, 5.50%, 07/01/32

  $ 250     $ 181,250  

Public Improvement, Series A, 5.50%, 07/01/39

    970       514,100  

Series A, 8.00%, 07/01/35

    1,515       757,500  

Commonwealth of Puerto Rico, GO, Series A, 6.00%, 07/01/38 (e)(f)

    750       543,750  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A:

   

5.00%, 07/01/33

    270       265,613  

5.13%, 07/01/37

    200       196,750  

5.75%, 07/01/37

    3,355       3,367,581  

6.00%, 07/01/38

    4,290       4,295,362  

5.25%, 07/01/42

    920       914,250  

6.00%, 07/01/44

    1,445       1,446,806  

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

   

Series A, 5.00%, 07/01/29

    660       532,950  

Series A, 7.00%, 07/01/33

    210       172,200  

Series A, 5.00%, 07/01/42

    1,315       1,061,862  

Series A, 7.00%, 07/01/43

    190       155,800  

Series TT, 5.00%, 07/01/25

    100       80,750  

Series TT, 5.00%, 07/01/26

    225       181,688  

Series TT, 5.00%, 07/01/32

    190       153,425  

Series WW, 5.50%, 07/01/38

    205       166,563  

Series XX, 5.25%, 07/01/27

    110       89,100  

Series XX, 5.25%, 07/01/40

    480       388,800  

Puerto Rico Electric Power Authority, Refunding RB (e)(f) :

   

Series AAA, 5.25%, 07/01/29

    95       76,950  

Series ZZ, 5.25%, 07/01/21

    50       40,500  

Series ZZ, 5.25%, 07/01/24

    345       279,450  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured:

   

CAB, Series A-1, 0.00%, 07/01/24 (d)

    79       66,377  

CAB, Series A-1, 0.00%, 07/01/27 (d)

    134       100,460  

CAB, Series A-1, 0.00%, 07/01/29 (d)

    131       87,686  

CAB, Series A-1, 0.00%, 07/01/31 (d)

    168       100,152  

CAB, Series A-1, 0.00%, 07/01/33 (d)

    190       101,485  

CAB, Series A-1, 0.00%, 07/01/46 (d)

    1,804       414,216  

CAB, Series A-1, 0.00%, 07/01/51 (d)

    1,469       251,743  

Series A-1, 4.50%, 07/01/34

    139       141,010  

Series A-1, 4.55%, 07/01/40

    70       68,606  

Series A-1, 4.75%, 07/01/53

    1,912       1,826,151  

Series A-1, 5.00%, 07/01/58

    2,372       2,337,748  

Series A-2, 4.55%, 07/01/40

    714       635,460  

Series A-2, 4.75%, 07/01/53

    21       18,199  

Series A-2, 5.00%, 07/01/58

    286       252,567  
   

 

 

 
    23,189,209  
Rhode Island — 2.0%  

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

    4,190       754,200  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/40

    980       1,038,966  

Series B, 4.50%, 06/01/45

    5,055       4,969,318  

Series B, 5.00%, 06/01/50

    3,330       3,415,814  
   

 

 

 
    10,178,298  
South Carolina — 0.7%  

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

    3,275       3,603,548  
   

 

 

 
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       994,098  

5.63%, 01/01/46

    1,085       1,156,870  
   

 

 

 
    2,150,968  
Security   Par
(000)
    Value  
Texas — 10.2%  

Central Texas Regional Mobility Authority, Refunding RB:

   

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

  $ 1,000     $ 786,450  

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

    2,000       1,519,180  

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

    1,170       855,633  

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

    3,690       2,352,338  

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

    4,000       2,437,440  

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

    2,210       2,371,949  

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

   

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

    2,890       3,105,247  

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

    910       1,004,713  

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

    5,040       5,296,536  

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)

    475       564,043  

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

    2,090       2,146,242  

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

    4,200       3,780,000  

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

    865       918,284  

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

    3,080       3,349,685  

Mission EDC, Refunding RB, Senior Lien, NatGasoline Project, AMT, 4.63%, 10/01/31 (b)

    890       927,674  

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

   

5.88%, 04/01/36

    1,210       1,323,946  

6.00%, 04/01/45

    1,845       2,015,810  

New Hope Cultural Education Facilities Finance Corp., Refunding RB, Jubilee Academic, Series A, 5.00%, 08/15/36 (b)

    1,085       1,104,378  

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

   

5.50%, 08/15/35

    290       307,986  

5.75%, 08/15/45

    580       618,286  

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

    1,600       1,679,136  

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

   

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

    2,895       1,802,137  

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

    900       920,268  

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

   

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

    3,775       3,989,533  

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

    3,000       3,095,670  

Texas Transportation Commission, RB, CAB, First Tier Toll Revenue (d) :

   

0.00%, 08/01/46

    1,420       406,248  

0.00%, 08/01/47

    2,120       575,665  

0.00%, 08/01/48

    2,235       575,982  

0.00%, 08/01/49

    2,100       514,038  

0.00%, 08/01/50

    3,015       693,359  

0.00%, 08/01/51

    1,770       383,754  

0.00%, 08/01/52

    1,770       362,000  

0.00%, 08/01/53

    160       30,918  
   

 

 

 
    51,814,528  
 

 

 

24    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Utah — 0.6%  

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

  $ 2,950     $ 2,955,045  
   

 

 

 
Virginia — 2.8%  

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

   

5.00%, 03/01/35

    495       504,232  

5.00%, 03/01/45

    505       511,590  

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

   

6.63%, 03/01/26

    1,485       1,572,199  

6.88%, 03/01/36

    1,300       1,380,158  

Norfolk Redevelopment & Housing Authority, RB, Fort Norfolk Retirement Community, Inc. — Harbor’s Edge Project, Series A:

   

4.00%, 01/01/29

    300       310,497  

5.00%, 01/01/34

    485       524,164  

4.38%, 01/01/39

    725       751,158  

5.00%, 01/01/49

    955       1,000,057  

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

    2,370       2,296,909  

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

    535       558,888  

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

    4,440       4,898,341  
   

 

 

 
    14,308,193  
Washington — 0.8%  

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

    1,455       1,505,707  

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

    1,495       1,526,290  

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

   

5.75%, 01/01/35

    315       318,610  

6.00%, 01/01/45

    850       862,937  
   

 

 

 
    4,213,544  
Wisconsin — 1.9%  

Public Finance Authority, RB:

   

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

    605       649,982  

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

    605       655,995  

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

    900       980,775  

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

    570       628,220  

Minnesota College of Osteopathic Medicine, Series A-1, 5.50%, 12/01/48 (b)

    655       696,579  

Piedmont Community Charter School, 5.00%, 06/15/39

    175       195,304  

Piedmont Community Charter School, 5.00%, 06/15/49

    530       583,228  

Piedmont Community Charter School, 5.00%, 06/15/53

    355       387,525  

Series A, 5.00%, 12/01/45

    1,505       1,569,158  

Series A, 5.15%, 12/01/50

    810       849,066  

Public Finance Authority, Refunding RB, Wingate University, Series A, 5.25%, 10/01/48

    1,065       1,189,211  

Wisconsin Health & Educational Facilities Authority, Refunding RB:

   

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

    225       234,837  

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

    425       433,683  
Security   Par
(000)
    Value  
Wisconsin (continued)  

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

  $ 855     $ 873,639  
   

 

 

 
    9,927,202  
 

 

 

 

Total Municipal Bonds — 89.1%
(Cost — $429,743,630)

 

    454,114,817  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts (i)

 

Colorado — 2.3%

 

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

    11,468       11,674,940  
   

 

 

 
Illinois — 2.9%  

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

    7,180       7,761,795  

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

    1,499       1,587,025  

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

    5,056       5,702,359  
   

 

 

 
    15,051,179  
Massachusetts — 0.5%  

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

    2,268       2,394,136  
   

 

 

 
New York — 14.6%  

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

   

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

    8,996       9,345,450  

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

    1,893       1,960,726  

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

    3,470       3,593,943  

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

    2,840       2,941,047  

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

   

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

    14,181       15,852,074  

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

    8,610       9,199,354  

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

   

5.75%, 02/15/21 (c)

    2,798       2,994,534  

5.75%, 02/15/47

    1,721       1,842,146  

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

    18,104       19,661,463  

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

    6,600       7,221,783  
   

 

 

 
    74,612,520  
Pennsylvania — 0.6%  

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

    2,505       2,941,037  
   

 

 

 
Rhode Island — 0.3%  

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

    1,710       1,758,222  
   

 

 

 
Texas — 0.5%  

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

    2,271       2,326,749  
   

 

 

 
Washington — 1.7%  

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

    7,966       8,470,588  
   

 

 

 
 

 

 

S CHEDULES   OF  I NVESTMENTS      25  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Wisconsin — 0.2%  

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

  $ 1,142     $ 1,191,726  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.6%
(Cost — $115,170,702)

 

    120,421,097  
 

 

 

 

Total Long-Term Investments — 112.7%
(Cost — $544,914,332)

 

    574,535,914  
 

 

 

 
     Shares         
Short-Term Securities — 0.2%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.94% (k)(l)

    767,387       767,464  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost — $767,464)

 

    767,464  
 

 

 

 

Total Investments — 112.9%
(Cost — $545,681,796)

 

    575,303,378  

Other Assets Less Liabilities — 1.2%

 

    6,442,566  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.1)%

 

    (72,101,319
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 509,644,625  
 

 

 

 

 

(a)  

When-issued security.

(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)  

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)  

Zero-coupon bond.

(e)  

Issuer filed for bankruptcy and/or is in default.

(f)  

Non-income producing 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.

(h)  

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.

(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 the 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 June 15, 2019 to August 15, 2020, 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 year ended April 30, 2019, investments in issuers considered to be an /affiliates 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
04/30/19
     Value at
04/30/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     2,226,571        (1,459,184      767,387      $ 767,464      $ 38,707      $ 1,044      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     30          06/19/19        $ 3,710        $ (17,614

Long U.S. Treasury Bond

     120          06/19/19          17,696          (74,235

5-Year U.S. Treasury Note

     22          06/28/19          2,544          (9,994
                 

 

 

 
                  $ (101,843
                 

 

 

 

 

 

26    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of year 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  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts (a)

   $      $      $      $      $ 101,843      $      $ 101,843  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the year ended April 30, 2019, 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

   $      $      $      $      $ (612,875    $      $ (612,875
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (141,425    $      $ (141,425
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 19,685,354  

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)

   $        $ 574,535,914        $        $ 574,535,914  

Short-Term Securities

     767,464                            767,464  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 767,464        $ 574,535,914        $        $ 575,303,378  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments (b)

                 

Liabilities:

                 

Interest rate contracts

   $ (101,843      $        $             —        $ (101,843
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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.

See notes to financial statements.

 

 

S CHEDULES   OF  I NVESTMENTS      27  


Schedule of Investments  

April 30, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 120.1%

 

Alabama — 0.3%  

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

  $ 1,010     $ 1,141,977  
   

 

 

 
Alaska — 0.6%  

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

    990       1,061,132  

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

   

6.00%, 09/01/19

    1200       1,217,294  
   

 

 

 
      2,278,426  
Arizona — 1.3%  

County of Maricopa Arizona IDA, Refunding RB, Series A:

   

HonorHealth, 5.00%, 09/01/36

    645       750,367  

Banner Health Obligation Group, 4.00%, 01/01/41

    745       789,112  

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

   

5.00%, 10/01/27

    2,700       2,738,016  

5.00%, 10/01/29

    400       405,632  
   

 

 

 
      4,683,127  
California — 14.1%  

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

    5,000       5,762,050  

California Health Facilities Financing Authority, RB:

   

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

    550       553,619  

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

    1,200       1,266,912  

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

    1,090       1,209,540  

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

    1,480       1,599,318  

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

    975       993,691  

City & County of San Francisco California Airports Commission, Refunding ARB, Series A, AMT, 5.00%, 05/01/49

    795       934,888  

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

   

Series A, 5.00%, 03/01/36

    410       475,293  

Series A, 5.00%, 03/01/37

    455       525,766  

Series A-1, 5.75%, 03/01/34

    850       902,403  

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

    2,175       2,353,502  

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

    12,740       9,661,889  

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

    1,700       1,691,415  

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

    2,500       2,268,450  

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

    3,750       2,218,462  

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

    5,000       2,683,600  

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

   

0.00%, 08/01/31

    2,145       1,239,574  

0.00%, 08/01/32

    2,680       1,452,640  
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     $ 884,592  

Series G, 0.00%, 07/01/34

    650       329,141  

Series G, 0.00%, 07/01/35

    690       328,288  

Series G, 0.00%, 07/01/36

    1,035       462,717  

Series G, 0.00%, 07/01/37

    690       289,959  

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

   

0.00%, 07/01/30

    5,000       3,713,900  

0.00%, 07/01/31

    1,280       915,814  

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

   

5.00%, 08/01/21

    1300       1,404,962  

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

    5,500       3,014,660  
   

 

 

 
      49,137,045  
Colorado — 1.3%  

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

    1,310       1,380,819  

Colorado Health Facilities Authority, RB, Adventist Health System/Sunbelt Obligated Group, Series A, 4.00%, 11/15/46

    1,070       1,128,368  

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

    2,000       2,072,160  
   

 

 

 
      4,581,347  
Connecticut — 1.1%  

Connecticut Housing Finance Authority, Refunding RB, S/F Housing:

   

Sub-Series A-1, 3.85%, 11/15/43

    360       369,713  

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

    770       818,217  

Series A-1, 3.80%, 11/15/39

    470       486,276  

Sub-Series B-1, 4.00%, 05/15/45

    1,445       1,504,014  

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

    615       731,438  
   

 

 

 
      3,909,658  
District of Columbia — 1.4%  

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

    4,855       4,866,846  
   

 

 

 
Florida — 10.4%  

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

    1,600       1,745,232  

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

   

6.00%, 11/15/19 (a)

    5       5,118  

6.00%, 11/15/37

    1,445       1,477,845  

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

   

5.63%, 10/01/26

    960       1,033,862  

5.38%, 10/01/32

    3,160       3,358,638  

County of Miami-Dade Florida, RB, Seaport:

   

Department, Series A, 6.00%, 10/01/38

    2,025       2,323,505  

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

    415       477,487  

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

    660       752,050  

Series B, AMT, 6.00%, 10/01/30

    640       732,384  

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

    1,035       1,095,837  

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

    190       212,756  

County of Miami-Dade Florida Aviation Revenue, Refunding ARB, Series A, AMT, 5.00%, 10/01/38

    480       539,414  

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

    2,995       3,321,395  
 

 

 

28    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

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     $ 609,146  

5.00%, 08/01/47

    1,620       1,756,291  

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

    515       526,876  

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

   

5.00%, 10/01/21 (a)

    30       32,361  

5.00%, 10/01/31

    1,970       2,119,346  

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

    1,750       2,008,510  

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

    275       276,787  

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

   

5.13%, 06/01/27

    2,000       2,130,760  

5.38%, 10/01/29

    1,050       1,134,451  

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

   

Series A, 5.00%, 10/01/47

    3,970       4,565,143  

Sub-Series A, 5.00%, 10/01/52

    1,490       1,703,040  

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

    2,065       2,262,187  
   

 

 

 
      36,200,421  
Georgia — 3.7%  

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

    500       576,740  

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

    1,250       1,288,875  

Main Street Natural Gas, Inc., RB, Series A:

   

5.00%, 05/15/43

    685       780,188  

4.00%, 04/01/48 (d)

    265       285,985  

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

    7,475       9,317,139  

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

   

5.00%, 04/01/33

    140       155,042  

5.00%, 04/01/44

    380       414,021  
   

 

 

 
      12,817,990  
Illinois — 16.1%  

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%, 01/01/41

    1,005       1,089,943  

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

   

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

    4,290       4,583,994  

3rd Lien, Series A, 5.75%, 01/01/39

    820       869,971  

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

    2,900       3,380,066  

City of Chicago Illinois Transit Authority, RB:

   

5.25%, 12/01/49

    900       994,293  

Sales Tax Receipts, 5.25%, 12/01/36

    595       627,332  

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

    45       47,280  

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

   

5.75%, 08/15/34

    650       698,341  

6.00%, 08/15/41

    1,000       1,081,060  
Security   Par
(000)
    Value  
Illinois (continued)  

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

   

4.13%, 08/15/37

  $ 740     $ 755,592  

5.00%, 08/15/44

    350       383,551  

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

    1,365       1,456,209  

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

    10,490       10,517,589  

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

    1,785       2,038,738  

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

    9,145       10,175,276  

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

   

0.00%, 12/15/26

    5,000       3,954,550  

0.00%, 12/15/33

    9,950       5,784,432  

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

    3,450       1,221,403  

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

    675       734,656  

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

    2,460       2,591,167  

State of Illinois, GO:

   

5.25%, 02/01/33

    830       879,709  

5.50%, 07/01/33

    820       874,013  

5.25%, 02/01/34

    830       878,065  

5.50%, 07/01/38

    445       470,579  
   

 

 

 
      56,087,809  
Indiana — 0.8%  

Indiana Finance Authority, RB, Series A:

   

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

    1,100       1,180,399  

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

    515       555,494  

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

    890       962,028  
   

 

 

 
      2,697,921  
Iowa — 2.0%  

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

    5,225       5,283,520  

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

   

5.60%, 12/01/26

    790       823,796  

5.70%, 12/01/27

    355       370,329  

5.80%, 12/01/29

    240       249,857  

5.85%, 12/01/30

    250       259,960  
   

 

 

 
      6,987,462  
Louisiana — 1.8%  

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

    2,820       3,107,104  

Louisiana Public Facilities Authority, Refunding RB, Ochsner Clinic Foundation Project, 5.00%, 05/15/46

    2,700       3,035,286  
   

 

 

 
      6,142,390  
Maine — 0.4%  

State of Maine Housing Authority, RB, M/F Housing, Series E, 4.25%, 11/15/43

    1,260       1,330,938  
   

 

 

 
Maryland — 0.3%  

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

    1,150       1,217,160  
   

 

 

 
 

 

 

S CHEDULES   OF  I NVESTMENTS      29  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts — 2.6%  

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

  $ 2,090     $ 2,337,498  

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

    3,235       3,426,480  

Massachusetts HFA, RB, M/F Housing, Series A, 3.85%, 06/01/46

    55       56,643  

Massachusetts HFA, Refunding RB, AMT:

   

Series A, 4.45%, 12/01/42

    795       825,599  

Series C, 5.35%, 12/01/42

    375       375,840  

Massachusetts School Building Authority, RB:

   

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

    1,280       1,406,605  

Sub-Series B, 4.00%, 02/15/43

    755       791,663  
   

 

 

 
      9,220,328  
Michigan — 5.4%  

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

    400       403,004  

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

    1,700       1,826,667  

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

    615       648,001  

Michigan Finance Authority, Refunding RB:

   

Henry Ford Health System, 4.00%, 11/15/46

    1,175       1,223,093  

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

    20       21,675  

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

    2,945       3,134,275  

Michigan State University, Refunding RB, Board of Trustees, Series B, 5.00%, 02/15/48

    640       755,085  

Michigan Strategic Fund, RB, I-75 Improvement Project, AMT, 5.00%, 12/31/43

    1,640       1,877,374  

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

    1,065       1,172,842  

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

   

Series I-A, 5.38%, 10/15/36

    145       156,556  

Series I-A, 5.38%, 10/15/41

    700       756,840  

Series II-A (AGM), 5.25%, 10/15/36

    900       972,198  

State of Michigan Housing Development Authority, RB:

   

M/F Housing, Series A, 4.05%, 10/01/48

    1,855       1,927,864  

M/F Housing, Series A, 4.15%, 10/01/53

    1,885       1,951,559  

S/F Housing, Series C, 4.13%, 12/01/38

    1,465       1,552,314  

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

    380       427,048  
   

 

 

 
      18,806,395  
Missouri — 0.3%  

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

    1,015       1,043,887  
   

 

 

 
Nebraska — 1.8%  

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

   

5.00%, 09/01/32

    5,010       5,421,070  

5.25%, 09/01/37

    750       818,003  
   

 

 

 
      6,239,073  
Nevada — 1.3%  

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

   

5.25%, 07/01/42

    500       509,915  

(AGM), 5.25%, 07/01/39

    3,800       3,877,634  
   

 

 

 
      4,387,549  
Security   Par
(000)
    Value  
New Jersey — 8.6%  

New Jersey EDA, RB:

   

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

  $ 895     $ 988,062  

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

    685       759,850  

Series WW, 5.25%, 06/15/33

    155       170,967  

Series WW, 5.00%, 06/15/34

    205       222,427  

Series WW, 5.00%, 06/15/36

    925       999,176  

Series WW, 5.25%, 06/15/40

    265       287,602  

New Jersey EDA, Refunding RB:

   

Series B, 5.50%, 06/15/30

    5,360       6,192,301  

Sub-Series A, 4.00%, 07/01/32

    1,040       1,074,310  

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

   

5.50%, 12/01/26

    270       287,051  

5.75%, 12/01/27

    1,745       1,869,663  

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

    970       1,011,235  

New Jersey Transportation Trust Fund Authority, RB:

   

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

    1,490       1,605,043  

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

    1,885       2,010,484  

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

    3,150       3,302,428  

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

    1,150       1,235,686  

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

    1,000       1,057,070  

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

    520       537,945  

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

    735       798,232  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB:

   

Series A, 5.00%, 06/01/34

    920       1,060,723  

Series A, 5.00%, 06/01/36

    1,365       1,558,243  

Series A, 4.00%, 06/01/37

    575       587,293  

Sub-Series B, 5.00%, 06/01/46

    2,255       2,351,875  
   

 

 

 
      29,967,666  
New York — 3.7%  

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       1,548,049  

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

    1,130       1,217,869  

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

    1,480       1,633,195  

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

   

5.75%, 02/15/21 (a)

    430       461,841  

5.75%, 02/15/47

    270       288,265  

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

    2,715       2,964,753  

Port Authority of New York & New Jersey, Refunding ARB, AMT:

   

Consolidated, 186th Series, 5.00%, 10/15/36

    625       703,256  

Consolidated,186th Series, 5.00%, 10/15/44

    1,250       1,394,212  

Series 207, 4.00%, 09/15/43

    460       489,293  

State of New York Dormitory Authority, Refunding RB, Bid Group 4, Series E, 5.00%, 03/15/48

    1,800       2,129,328  

State of New York HFA, RB, M/F Housing, Green Bond, Series B (SONYMA), 3.88%, 11/01/48

    170       175,522  
   

 

 

 
      13,005,583  
Ohio — 2.0%  

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

    460       479,117  

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

    530       593,303  
 

 

 

30    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Ohio (continued)  

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

  $ 320     $ 336,298  

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

    10,000       5,573,300  
   

 

 

 
      6,982,018  
Oklahoma — 0.2%  

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

    555       587,029  
   

 

 

 
Oregon — 0.8%  

County of Clackamas Oregon Community College District, GO, Convertible Deferred Interest Bonds, Series A, 0.00%, 06/15/40 (c)

    440       482,363  

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

    995       473,570  

Port of Portland Oregon Airport Revenue, ARB, Series 24B, AMT, 5.00%, 07/01/42

    1,150       1,313,197  

State of Oregon Housing & Community Services Department, RB, S/F Housing, Mortgage Program, Series C, 3.95%, 07/01/43

    425       442,497  
   

 

 

 
      2,711,627  
Pennsylvania — 11.2%  

City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB, Series B, AMT:

   

5.00%, 07/01/35

    755       874,970  

5.00%, 07/01/47

    1,610       1,830,425  

Commonwealth Financing Authority, RB:

   

Series B, 5.00%, 06/01/42

    1,600       1,718,912  

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

    1,050       1,116,770  

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

    950       989,758  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 06/30/42

    1,035       1,133,946  

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

    7,290       8,134,619  

Pennsylvania Rapid Bridge Replacement, 5.00%, 12/31/38

    1,305       1,438,971  

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

    940       996,287  

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

    2,330       2,607,899  

Pennsylvania Housing Finance Agency, RB, S/F Housing:

   

Series 127-B, 3.88%, 10/01/38

    885       914,860  

Series 128B, 3.85%, 04/01/38

    1,970       2,040,526  

Pennsylvania Turnpike Commission, RB:

   

Series A, 5.00%, 12/01/38

    620       694,400  

Series A-1, 5.00%, 12/01/41

    2,385       2,713,319  

Series B, 5.00%, 12/01/40

    935       1,058,457  

Series C, 5.50%, 12/01/23 (a)

    555       648,085  

Series C, 5.00%, 12/01/39

    3,275       3,662,039  

Sub-Series A-1, 5.00%, 12/01/41

    2,430       2,704,444  

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

    575       614,227  

Pennsylvania Turnpike Commission, Refunding RB:

   

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

    2,070       2,204,426  

Series A-1, 5.00%, 12/01/40

    765       860,327  

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

    305       342,893  
   

 

 

 
      39,300,560  
Security   Par
(000)
    Value  
Rhode Island — 1.2%  

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

  $ 465     $ 527,138  

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

   

4.50%, 06/01/45

    1,055       1,037,118  

5.00%, 06/01/50

    2,630       2,697,775  
   

 

 

 
      4,262,031  
South Carolina — 5.5%  

South Carolina Jobs EDA, Refunding RB, Series A:

   

Palmetto Health (AGM), 6.50%, 08/01/21 (a)

    115       127,331  

Prisma Health Obligated Group, 5.00%, 05/01/38

    2,490       2,869,352  

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

    530       608,265  

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

    3,000       3,044,670  

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

    2,330       2,613,678  

State of South Carolina Public Service Authority, RB:

   

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

    6,225       6,912,738  

Series E, 5.50%, 12/01/53

    745       819,738  

State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series B, 5.00%, 12/01/38

    2,080       2,267,845  
   

 

 

 
      19,263,617  
South Dakota — 1.3%  

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

   

4.00%, 07/01/37

    1,225       1,289,447  

4.00%, 07/01/42

    3,000       3,138,300  
   

 

 

 
      4,427,747  
Tennessee — 2.1%  

Greeneville Health & Educational Facilities Board, Refunding RB, Ballad Health Obligation Group, Series A, 4.00%, 07/01/40

    840       865,948  

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/46

    1,245       1,390,403  

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

    5,000       5,081,700  
   

 

 

 
      7,338,051  
Texas — 12.7%  

Central Texas Turnpike System, RB, Series C, 5.00%, 08/15/42

    1,395       1,533,928  

Central Texas Turnpike System, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A,

   

5.00%, 08/15/41

    3,080       3,299,820  

6.00%, 05/15/19 (a)

    110       110,175  

City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC), 5.38%, 05/15/19 (a)

    70       70,096  

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

    575       635,168  

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       1,079,228  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/35

    1,880       2,219,641  

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

    750       839,445  

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

    3,160       3,599,777  

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

   

Series D, 5.00%, 11/01/38

    1,975       2,093,934  
 

 

 

S CHEDULES   OF  I NVESTMENTS      31  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

Series D, 5.00%, 11/01/42

  $ 1,500     $ 1,586,955  

Series H, 5.00%, 11/01/32

    3,000       3,197,910  

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

    975       1,099,147  

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

    3,420       1,504,732  

North Texas Tollway Authority, Refunding RB:

   

4.25%, 01/01/49

    1,225       1,307,283  

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

    525       526,722  

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

   

0.00%, 09/15/35

    4,990       2,396,398  

0.00%, 09/15/36

    11,525       5,209,530  

0.00%, 09/15/37

    8,245       3,503,218  

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

    1,355       1,592,531  

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

    390       412,698  

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

   

5.00%, 12/15/31

    1,190       1,288,246  

5.00%, 12/15/32

    3,440       3,715,854  

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

    1,275       1,391,752  
   

 

 

 
      44,214,188  
Utah — 0.5%  

City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT:
5.00%, 07/01/42

    1,240       1,420,333  

5.00%, 07/01/48

    445       513,779  
   

 

 

 
      1,934,112  
Washington — 1.7%  

Port of Seattle Washington, ARB, Series A, AMT, 5.00%, 05/01/43

    1,955       2,224,164  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40

    1,015       1,121,352  

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

    615       712,970  

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

   

4.00%, 10/01/45

    705       735,900  

Series A, 5.00%, 10/01/39

    525       537,206  

Series A, 5.25%, 10/01/39

    625       642,944  
   

 

 

 
      5,974,536  
West Virginia — 0.2%  

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

    670       688,807  
   

 

 

 
Wisconsin — 1.4%  

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

    1,375       1,397,316  

Wisconsin Housing & Economic Development Authority, RB, M/F Housing, Series A:

   

4.15%, 11/01/48

    2,150       2,258,790  

4.45%, 05/01/57

    1,160       1,219,775  
   

 

 

 
      4,875,881  
   

 

 

 

Total Municipal Bonds — 120.1%
(Cost — $384,412,144)

 

    419,311,202  
   

 

 

 
Security   Par
(000)
    Value  

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     $ 1,206,552  

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

    1,710       1,809,813  
   

 

 

 
      3,016,365  
California — 2.1%  

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

    3,827       4,073,511  

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

    1,571       1,885,111  

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

    404       407,741  

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

    840       841,469  
   

 

 

 
      7,207,832  
Colorado — 3.1%  

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

    2,324       2,750,778  

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

   

5.50%, 07/01/34 (f)

    900       904,095  

5.00%, 02/01/41

    7,000       7,244,370  
   

 

 

 
      10,899,243  
Connecticut — 0.4%  

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

    1,381       1,571,621  
   

 

 

 
District of Columbia — 0.6%  

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

    1,005       1,026,630  

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

    1,031       1,075,139  
   

 

 

 
      2,101,769  
Florida — 4.7%  

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

    4,480       4,842,118  

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

    4,621       4,838,047  

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

    3,544       3,577,915  

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

    2,640       3,014,440  
   

 

 

 
      16,272,520  
Georgia — 0.6%  

Georgia Housing & Finance Authority, Refunding RB, S/F Mortgage Bonds, Series A, 3.70%, 06/01/49

    2,041       2,085,306  
   

 

 

 
Illinois — 3.1%  

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

    4,399       4,417,398  

State of Illinois Toll Highway Authority, RB:

   

Series A, 5.00%, 01/01/38

    2,138       2,326,391  

Series A, 5.00%, 01/01/40

    2,730       3,079,612  

Series B, 5.00%, 01/01/40

    1,050       1,188,329  
   

 

 

 
      11,011,730  
Kansas — 1.6%  

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

    4,723       5,688,297  
   

 

 

 
 

 

 

32    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
     Value  
Louisiana — 0.5%  

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

  $ 1,515      $ 1,596,810  
    

 

 

 
Maine — 0.4%  

State of Maine Housing Authority, RB, M/F Housing, Series E, 4.15%, 11/15/38

    1,411        1,493,573  
    

 

 

 
Maryland — 1.3%  

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

    1,061        1,219,334  

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

    2,808        3,228,631  
    

 

 

 
       4,447,965  
Massachusetts — 0.5%  

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

    1,461        1,634,550  
    

 

 

 
Michigan — 3.2%  

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

    1,970        2,191,499  

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

    7,530        8,045,729  

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

    870        997,629  
    

 

 

 
       11,234,857  
Nebraska — 0.8%  

Nebraska Investment Finance Authority, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 3.70%, 03/01/47

    2,901        2,936,605  
    

 

 

 
Nevada — 4.0%  

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

    3,061        3,646,868  

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

    

5.50%, 07/01/19

    4,499        4,527,649  

5.75%, 07/01/19

    1,829        1,841,917  

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

    3,460        3,966,129  
    

 

 

 
       13,982,563  
New Jersey — 2.2%  

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

    800        922,874  

New Jersey State Turnpike Authority, Refunding RB:

    

Series B, 4.00%, 01/01/37

    2,308        2,495,458  

Series G, 4.00%, 01/01/43

    2,146        2,291,941  

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

    1,840        1,919,789  
    

 

 

 
       7,630,062  
New York — 6.9%  

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

    2,180        2,304,685  

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

    3,058        3,587,921  

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

    1,680        1,736,022  

City of New York Water & Sewer System, Refunding RB:

    

2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 06/15/47

    5,680        6,349,773  

Series DD, 5.00%, 06/15/35

    1,665        1,892,656  
Security   Par
(000)
     Value  
New York (continued)  

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

  $ 3,470      $ 3,961,873  

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

    1,498        1,729,446  

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

    2,241        2,610,485  
    

 

 

 
       24,172,861  
Ohio — 1.5%  

Northeast Ohio Regional Sewer District, Refunding RB:

    

4.00%, 11/15/49 (f)

    2,115        2,218,036  

4.00%, 11/15/43

    2,912        3,138,793  
    

 

 

 
       5,356,829  
Pennsylvania — 0.7%  

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

    900        1,022,080  

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

    1,229        1,285,888  
    

 

 

 
       2,307,968  
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        1,504,288  
    

 

 

 
Texas — 2.5%  

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

    1,470        1,507,848  

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

    1,229        1,445,636  

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

    3,440        3,921,110  

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

    1,874        1,932,933  
    

 

 

 
     8,807,527  
Virginia — 0.8%  

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

    2,234        2,700,802  
    

 

 

 
Washington — 1.8%  

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

    2,530        2,766,391  

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

    2,880        3,433,238  
    

 

 

 
     6,199,629  
Wisconsin — 0.6%  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group, Series A, 5.00%, 04/01/42

    1,980        2,117,392  
    

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 45.2%
(Cost — $153,151,646)

 

     157,978,964  
    

 

 

 

Total Long-Term Investments — 165.3%
(Cost — $537,563,790)

 

     577,290,166  
    

 

 

 
 

 

 

S CHEDULES   OF  I NVESTMENTS      33  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  
Short-Term Securities — 0.2%  

BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.94% (g)(h)

    580,450      $ 580,508  
    

 

 

 

Total Short-Term Securities — 0.2%
(Cost — $580,508)

 

     580,508  
    

 

 

 

Total Investments — 165.5%
(Cost — $538,144,298)

 

     577,870,674  

Other Assets Less Liabilities — 1.5%

 

     5,452,990  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (26.2)%

 

     (91,802,133

VRDP Shares at Liquidation Value, Net of Deferred Offering
Costs — (40.8)%

 

     (142,327,121
    

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

   $ 349,194,410  
    

 

 

 

 

(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)  

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)  

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 Statement for details.

(f)  

All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expires between June 15, 2019 to July 01, 2034, is $14,971,848. See Note 4 of the Notes to Financial Statements for details.

(g)  

Annualized 7-day yield as of period end.

 
(h)  

During the year ended April 30, 2019, investments in issuers considered to be an affiliate/affiliates 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
04/30/19
     Value at
04/30/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

            580,450        580,450      $ 580,508      $ 21,238      $ 747      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     87          06/19/19        $ 10,759        $ (59,851

Long U.S. Treasury Bond

     201          06/19/19          29,641          (148,159

5-Year U.S. Treasury Note

     16          06/28/19          1,850          (8,234
                 

 

 

 
                  $ (216,244
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of year 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  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts (a)

   $      $      $      $      $ 216,244      $      $ 216,244  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

 

 

34    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

 

For the year ended April 30, 2019, 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

   $      $      $      $      $ (1,067,315    $      $ (1,067,315
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (268,871    $      $ (268,871
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 32,339,031  

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)

   $        $ 577,290,166        $        $ 577,290,166  

Short-Term Securities

     580,508                            580,508  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 580,508        $ 577,290,166        $        $ 577,870,674  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments (b)

 

Liabilities:

 

Interest rate contracts

   $ (216,244      $        $        $ (216,244
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

   $        $ (91,348,628      $        $ (91,348,628

VRDP Shares at Liquidation Value

              (142,500,000                 (142,500,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (233,848,628      $        $ (233,848,628
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

S CHEDULES   OF  I NVESTMENTS      35  


Schedule of Investments  

April 30, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 115.8%

 

Alabama — 2.1%  

County of Jefferson Alabama Sewer, Refunding RB:

   

Senior Lien, Series A (AGM), 5.00%, 10/01/44

  $ 570     $ 627,804  

Senior Lien, Series A (AGM), 5.25%, 10/01/48

    1,090       1,211,382  

Sub-Lien, Series D, 6.00%, 10/01/42

    1,000       1,164,140  

Sub-Lien, Series D, 7.00%, 10/01/51

    1,545       1,864,923  
   

 

 

 
    4,868,249  
Arizona — 2.9%            

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46 (a)

    1,230       1,283,308  

Salt Verde Financial Corp., RB, Senior:

   

5.00%, 12/01/32

    2,000       2,468,980  

5.00%, 12/01/37

    2,360       2,972,184  
   

 

 

 
    6,724,472  
California — 8.8%            

California Educational Facilities Authority, RB, Stanford University, Series V-1, 5.00%, 05/01/49

    1,545       2,163,232  

California Health Facilities Financing Authority, RB:

   

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

    1,530       1,540,067  

Sutter Health, Series B, 6.00%, 08/15/20 (b)

    2,200       2,326,170  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33

    875       979,843  

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

   

5.25%, 08/15/39

    105       117,335  

5.25%, 08/15/49

    265       292,433  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 02/01/42

    165       185,554  

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (a)

    1,025       1,080,371  

California Statewide Communities Development Authority, RB, Series A:

   

John Muir Health, 5.13%, 07/01/19 (b)

    1,510       1,518,909  

Loma Linda University Medical Center,
5.00%, 12/01/46 (a)

    330       358,624  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 05/15/39

    555       555,760  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38

    255       301,094  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.00%, 06/01/47

    1,950       1,908,446  

Montebello Unified School District, GO, CAB (NPFGC), 0.00%, 08/01/22 (c)

    2,405       2,240,450  

San Diego Unified School District California, GO, CAB, Election of 2008, Series A, 0.00%, 07/01/29 (c)

    3,475       2,688,920  

State of California Public Works Board, LRB, Various Capital Projects:

   

Series I, 5.00%, 11/01/38

    550       609,928  

Sub-Series I-1, 6.38%, 11/01/19 (b)

    820       840,188  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 06/01/25

    890       895,189  
   

 

 

 
    20,602,513  
Colorado — 2.8%            

Arapahoe County School District No. 6 Littleton, GO, Series A, 5.50%, 12/01/43

    1,260       1,570,262  

Colorado Educational & Cultural Facilities Authority, RB, Charter School, Colorado Springs, 5.50%, 07/01/40

    1,455       1,489,323  
Security   Par
(000)
    Value  
Colorado (continued)            

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

  $ 710     $ 735,617  

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

    1,425       1,478,837  

University of Colorado, RB, Series A, 5.38%, 06/01/19 (b)

    1,250       1,253,800  
   

 

 

 
    6,527,839  
Delaware — 1.8%            

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

    790       832,842  

Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 06/01/55

    840       937,683  

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

    2,430       2,518,841  
   

 

 

 
    4,289,366  
District of Columbia — 6.5%            

District of Columbia, Refunding RB:

   

Georgetown University, 5.00%, 04/01/35

    315       369,312  

Georgetown University Issue, 5.00%, 04/01/42

    260       300,019  

The Catholic University of America Issue, 5.00%, 10/01/48

    1,695       1,937,334  

District of Columbia, Tax Allocation Bonds, City Market at O Street Project, 5.13%, 06/01/41

    1,520       1,604,999  

Metropolitan Washington Airports Authority, Refunding ARB:

   

Dulles Metrorail And Capital Improvement Projects, Series A, 5.00%, 10/01/53

    1,475       1,563,957  

Dulles Toll Road, CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/35 (c)

    13,485       7,606,619  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:

   

5.00%, 10/01/39

    505       510,782  

5.25%, 10/01/44

    1,470       1,486,802  
   

 

 

 
    15,379,824  
Florida — 4.8%            

City of Clearwater Florida Water & Sewer Revenue, RB, Series A, 5.25%, 12/01/19 (b)

    2,375       2,425,968  

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45

    960       1,041,398  

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A-1, 5.38%, 10/01/20 (b)

    2,620       2,757,314  

Florida Development Finance Corp., Refunding RB, Virgin Trains USA Passenger Rail Project, Series A, AMT (a) (d):

   

6.38%, 01/01/49

    450       461,817  

6.50%, 01/01/49

    640       655,725  

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

    2,095       2,365,611  

Village Community Development District No.10, Special Assessment Bonds, 5.13%, 05/01/43

    1,390       1,500,588  
   

 

 

 
    11,208,421  
Georgia — 2.7%            

County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48

    2,615       2,770,985  

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

    370       426,788  

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

    585       594,892  

Main Street Natural Gas, Inc., RB, Series A:

   

5.00%, 05/15/35

    360       435,611  

5.00%, 05/15/36

    360       436,291  

5.00%, 05/15/37

    400       485,412  

5.00%, 05/15/38

    220       267,566  
 

 

 

36    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Georgia (continued)            

5.00%, 05/15/49

  $ 725     $ 907,033  
   

 

 

 
    6,324,578  
Hawaii — 0.4%            

State of Hawaii Harbor System, RB, Series A, 5.25%, 07/01/30

    945       982,318  
   

 

 

 
Idaho — 0.3%            

Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series A, 5.00%, 12/01/46

    540       619,871  
   

 

 

 
Illinois — 14.7%            

Chicago Board of Education, GO, Series D:

   

Series H, 5.00%, 12/01/36

    350       373,727  

Project, 5.25%, 12/01/35

    1,075       1,140,478  

Chicago Board of Education, GO, Refunding Dedicated Revenues:

   

Series F, 5.00%, 12/01/22

    455       482,168  

Series G, 5.00%, 12/01/34

    315       338,531  

Series H, 5.00%, 12/01/30

    605       660,097  

Chicago Board of Education, GO, Series C:

   

5.00%, 12/01/46

    1,405       1,452,962  

Refunding, 5.00%, 12/01/27

    500       545,150  

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

    876       880,906  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien:

   

Series A, 5.75%, 01/01/21 (b)

    1,680       1,795,130  

Series A, 5.75%, 01/01/39

    320       339,501  

Series C, 6.50%, 01/01/21 (b)

    4,055       4,381,955  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

    730       768,442  

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42

    1,000       1,062,430  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

    560       590,027  

Illinois Finance Authority, Refunding RB, Central Dupage Health, Series B, 5.50%, 11/01/19 (b)

    1,115       1,136,341  

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

   

CAB, Series B (AGM), 0.00%, 06/15/47 (c)

    13,220       4,087,095  

Series B (AGM), 5.00%, 06/15/50

    3,070       3,145,706  

Series B-2, 5.00%, 06/15/50

    1,850       1,870,886  

Railsplitter Tobacco Settlement Authority, RB (b) :

   

5.50%, 06/01/21

    315       339,633  

6.00%, 06/01/21

    800       870,704  

State of Illinois, GO:

   

5.00%, 02/01/39

    1,100       1,141,932  

Refunding, Series B, 5.00%, 10/01/29

    930       1,028,254  

Series A, 5.00%, 04/01/38

    2,625       2,716,481  

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

    440       441,892  

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

    2,000       2,253,720  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44

    705       771,016  
   

 

 

 
    34,615,164  
Indiana — 3.9%            

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

   

6.75%, 01/01/34

    560       646,078  

7.00%, 01/01/44

    1,355       1,575,540  

Indiana Finance Authority, RB, Series A:

   

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

    2,275       2,441,280  
Security   Par
(000)
    Value  
Indiana (continued)            

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

  $ 310     $ 334,375  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48

    1,030       1,108,640  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51

    290       314,807  

Sisters of St. Francis Health Services, 5.25%, 11/01/19 (b)

    585       595,471  

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A:

   

5.75%, 05/01/19 (b)

    1,075       1,075,000  

5.75%, 05/01/31

    225       225,000  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40

    880       973,148  
   

 

 

 
    9,289,339  
Iowa — 1.7%            

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

Series B, 5.25%, 12/01/50 (d)

    1,955       2,095,115  

Midwestern Disaster Area, 5.25%, 12/01/25

    320       344,765  

Midwestern Disaster Area, 5.88%, 12/01/26 (a)

    285       299,555  

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

    280       290,797  

Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 06/01/46

    980       967,152  
   

 

 

 
    3,997,384  
Kansas — 0.7%            

Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C (b) :

   

5.75%, 11/15/19

    35       35,739  

5.75%, 11/15/19

    1,485       1,517,596  
   

 

 

 
    1,553,335  
Kentucky — 0.7%            

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45

    705       757,811  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 07/01/43 (e)

    865       872,249  
   

 

 

 
    1,630,060  
Louisiana — 1.6%            

New Orleans Aviation Board, RB, Passenger Facility Charge, Series A, 5.25%, 01/01/41

    430       438,871  

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

   

5.50%, 05/15/30

    700       722,505  

5.25%, 05/15/31

    600       632,304  

5.25%, 05/15/32

    765       823,346  

5.25%, 05/15/33

    830       890,034  

5.25%, 05/15/35

    350       380,555  
   

 

 

 
    3,887,615  
Maine — 0.1%            

Maine Health & Higher Educational Facilities Authority, RB, Series A:

   

5.00%, 07/01/19 (b)

    65       65,356  

5.00%, 07/01/39

    145       145,643  
   

 

 

 
    210,999  
Maryland — 1.1%            

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

    530       545,200  
 

 

 

S CHEDULES   OF  I NVESTMENTS      37  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Maryland (continued)            

Maryland Health & Higher Educational Facilities Authority, RB, Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

  $ 305     $ 354,157  

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 01/01/21 (b)

    1,520       1,632,678  
   

 

 

 
    2,532,035  
Massachusetts — 0.6%            

Massachusetts Development Finance Agency, Refunding RB, Boston University, Series P, 5.45%, 05/15/59

    1,165       1,417,595  
   

 

 

 
Michigan — 3.8%            

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

    3,085       3,340,407  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:

   

5.50%, 05/15/20 (b)

    530       550,596  

5.50%, 05/15/36

    425       438,617  

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

    630       673,892  

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.75%, 11/15/19 (b)

    2,105       2,151,205  

Michigan State University, Refunding RB, Board of Trustees, Series B, 5.00%, 02/15/48

    730       861,269  

Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.00%, 06/30/48

    785       895,096  
   

 

 

 
    8,911,082  
Minnesota — 1.1%            

Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A:

   

4.25%, 02/15/48

    750       791,153  

5.25%, 02/15/53

    1,500       1,719,405  
   

 

 

 
    2,510,558  
Mississippi — 0.3%            

University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 09/01/19 (b)

    675       683,525  
   

 

 

 
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       191,960  

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43

    175       188,375  
   

 

 

 
    380,335  
Nebraska — 0.3%            

Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.25%, 09/01/37

    575       627,135  
   

 

 

 
New Hampshire — 2.0%            

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

   

Series B, 4.63%, 11/01/42

    1,105       1,118,923  

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

    575       586,569  

New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 08/01/19 (b)

    3,035       3,067,535  
   

 

 

 
    4,773,027  
New Jersey — 9.1%            

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    735       791,198  

5.25%, 11/01/44

    1,095       1,177,037  
Security   Par
(000)
    Value  
New Jersey (continued)            

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

  $ 775     $ 780,162  

New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23

    1,410       1,518,556  

New Jersey EDA, RB:

   

Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29

    1,365       1,488,956  

Series EEE, 5.00%, 06/15/48

    2,705       2,961,515  

New Jersey EDA, Refunding ARB, Port Network Container Terminal LLC Project, AMT, 5.00%, 10/01/47

    1,060       1,153,015  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31

    1,550       1,729,382  

New Jersey State Turnpike Authority, RB:

   

Series A, 5.00%, 01/01/43

    715       775,754  

Series E, 5.00%, 01/01/45

    1,875       2,103,037  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.00%, 06/15/44

    315       334,580  

Transportation Program, Series AA, 5.00%, 06/15/44

    580       608,391  

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

    1,575       1,651,214  

Transportation System, Series B, 5.25%, 06/15/36

    1,705       1,779,202  

Tobacco Settlement Financing Corp., Refunding RB, Series A, 5.25%, 06/01/46

    390       436,250  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Sub-Series B, 5.00%, 06/01/46

    2,100       2,190,216  
   

 

 

 
    21,478,465  
New York — 7.2%            

City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 02/01/42

    310       333,669  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41 (a)

    1,300       1,331,694  

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

    715       715,029  

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

    229       249,004  

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

    1,405       1,386,257  

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38

    1,715       1,944,724  

Metropolitan Transportation Authority, Refunding RB, Dedicated Tax Fund, Series B, 5.00%, 11/15/19 (b)

    1,740       1,772,677  

New York Counties Tobacco Trust IV, Refunding RB, Tobacco Settlement Pass-Through Bonds, Series A, 5.00%, 06/01/38

    1,415       1,406,340  

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       877,022  

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

    2,275       2,447,741  

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

    245       270,051  

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

    605       664,435  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:

   

6.00%, 12/01/36

    900       952,911  

6.00%, 12/01/42

    875       926,030  

State of New York Environmental Facilities Corp., RB, Subordinated SRF Bonds, Series B, 5.00%, 06/15/48

    1,305       1,553,981  
   

 

 

 
    16,831,565  
 

 

 

38    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
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)

  $ 415     $ 459,173  
   

 

 

 
North Dakota — 0.3%            

County of Cass North Dakota, Refunding RB, Essentia Health Obligated Group, Series B, 5.25%, 02/15/58

    695       779,463  
   

 

 

 
Ohio — 1.7%            

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.88%, 06/01/47

    2,570       2,435,075  

County of Franklin Ohio, RB:

   

Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40

    470       509,104  

Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    290       332,894  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53

    580       620,066  
   

 

 

 
    3,897,139  
Oklahoma — 1.7%            

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

    1,500       1,586,565  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48

    855       970,177  

Oklahoma Turnpike Authority, RB, 2nd Series C, 4.00%, 01/01/42

    1,420       1,516,390  
   

 

 

 
    4,073,132  
Pennsylvania — 3.7%            

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42

    460       494,735  

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

   

5.00%, 09/01/43

    905       1,034,686  

4.00%, 09/01/49

    415       432,368  

Pennsylvania Economic Development Financing Authority, RB:

   

American Water Co. Project, 6.20%, 04/01/39

    2,520       2,528,467  

AMT, 5.00%, 06/30/42

    2,015       2,207,634  

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

    1,105       1,161,035  

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

    795       885,606  
   

 

 

 
    8,744,531  
Puerto Rico — 3.1%            

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

   

5.50%, 05/15/39

    475       480,296  

5.63%, 05/15/43

    500       505,485  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A:

   

5.00%, 07/01/33

    1,845       1,815,019  

5.13%, 07/01/37

    510       501,713  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A:

   

6.00%, 07/01/38

    530       530,662  

6.00%, 07/01/44

    960       961,200  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:

   

4.50%, 07/01/34

    20       20,289  

4.75%, 07/01/53

    801       765,035  

5.00%, 07/01/58

    1,753       1,727,687  
   

 

 

 
    7,307,386  
Security   Par
(000)
    Value  
Rhode Island — 2.2%            

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

  $ 580     $ 622,009  

Series B, 4.50%, 06/01/45

    1,900       1,867,795  

Series B, 5.00%, 06/01/50

    2,605       2,672,131  
   

 

 

 
    5,161,935  
South Carolina — 4.7%            

South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/48

    2,245       2,547,312  

State of South Carolina Ports Authority, ARB:

   

5.25%, 07/01/20 (b)

    2,285       2,380,467  

AMT, 5.25%, 07/01/55

    925       1,032,393  

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

    2,410       2,676,257  

State of South Carolina Public Service Authority, Refunding RB:

   

Series A, 5.00%, 12/01/50

    1,035       1,144,741  

Series E, 5.25%, 12/01/55

    1,225       1,375,295  
   

 

 

 
    11,156,465  
Tennessee — 1.0%            

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45

    980       1,053,412  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40

    495       555,296  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A, 5.25%, 10/01/58

    705       810,940  
   

 

 

 
    2,419,648  
Texas — 7.4%            

Central Texas Regional Mobility Authority, Refunding RB:

   

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

    1,480       1,588,454  

Sub-Lien, 5.00%, 01/01/33

    250       271,540  

City of Austin Texas Airport System, ARB, AMT, 5.00%, 11/15/39

    440       489,174  

City of Austin Texas Electric Utility Revenue, Refunding RB, Series A, 5.00%, 11/15/37

    1,500       1,642,980  

City of San Antonio Texas Electric and Gas Systems Revenue, Refunding RB, Series A, 5.00%, 02/01/48

    850       1,011,917  

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       385,925  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/48

    3,330       3,823,772  

La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 08/15/19 (b)

    450       456,026  

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 09/01/31 (b) (c)

    1,400       652,652  

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

    1,825       2,144,923  

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

   

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

    2,000       2,113,660  

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

    1,700       1,754,213  

Texas Transportation Commission, RB, First Tier Toll Revenue, 5.00%, 08/01/57

    845       955,475  
   

 

 

 
    17,290,711  
 

 

 

S CHEDULES   OF  I NVESTMENTS      39  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Utah — 0.6%            

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

   

5.00%, 07/01/48

  $ 640     $ 738,919  

5.00%, 07/01/47

    665       758,625  
   

 

 

 
    1,497,544  
Virginia — 1.8%            

County of Hanover Virginia EDA, Refunding RB, Covenant Woods, Series A:

   

5.00%, 07/01/42

    625       642,806  

Residential Care Facility, 5.00%, 07/01/47

    970       995,899  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 01/01/32

    550       588,962  

6.00%, 01/01/37

    1,830       2,018,911  
   

 

 

 
    4,246,578  
Washington — 2.3%            

Grant County Public Utility District No. 2, Refunding RB, Series A, 5.00%, 01/01/43

    1,555       1,767,258  

Port of Seattle Washington, ARB, Series A, AMT, 5.00%, 05/01/43

    1,085       1,234,383  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40

    540       596,581  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45

    1,625       1,790,685  
   

 

 

 
    5,388,907  
Wisconsin — 2.9%            

State of Wisconsin, Refunding RB, Series A, 6.00%, 05/01/19 (b)

    4,980       4,980,000  

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

    1,710       1,737,753  
   

 

 

 
    6,717,753  
   

 

 

 

Total Municipal Bonds — 115.8%
(Cost — $251,000,377
)

 

    271,997,034  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts (f)

 

California — 7.1%

   

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, 4.00%, 04/01/42 (g)

    2,257       2,410,632  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19 (b)

    6,600       6,717,656  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.00%, 05/15/40

    4,121       4,261,798  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    2,250       2,601,086  

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

    748       755,076  
   

 

 

 
    16,746,248  
Colorado — 2.7%            

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

    1,664       1,969,912  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 07/01/34 (g)

    1,490       1,496,779  

County of Adams Colorado, COP, Refunding, 4.00%, 12/01/45

    2,700       2,831,045  
   

 

 

 
    6,297,736  
Security   Par
(000)
    Value  
Florida — 1.8%            

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

  $ 3,939     $ 4,125,093  
   

 

 

 
Illinois — 0.5%            

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

    1,034       1,095,047  
   

 

 

 
Massachusetts — 4.3%            

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

    1,502       1,585,520  

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 5.00%, 07/01/47

    3,359       3,813,206  

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

    4,502       4,801,371  
   

 

 

 
    10,200,097  
New York — 9.6%            

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       1,114,995  

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

   

5.75%, 02/15/21 (b)

    687       735,383  

5.75%, 02/15/47

    423       452,386  

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

    7,440       8,079,607  

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

    4,460       4,880,174  

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

    1,860       2,152,355  

State of New York Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/46

    4,846       5,241,132  
   

 

 

 
    22,656,032  
North Carolina — 0.9%            

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55

    1,830       2,079,365  
   

 

 

 
Pennsylvania — 0.8%            

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

    1,695       1,990,043  
   

 

 

 
Rhode Island — 0.5%            

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

    1,140       1,172,148  
   

 

 

 
Texas — 6.5%            

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

    1,720       1,888,190  

County of Harris Texas, RB, Toll Road, Senior Lien, Series A (g) :

   

5.00%, 08/15/19 (b)

    2,620       2,641,524  

5.00%, 08/15/38

    2,004       2,020,538  

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

    2,350       2,512,408  

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

    1,504       1,540,893  

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

    2,295       2,367,224  

University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43

    2,041       2,222,974  
   

 

 

 
    15,193,751  
 

 

 

40    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

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     $ 2,543,946  
   

 

 

 
Virginia — 0.9%            

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

    2,095       2,158,753  
   

 

 

 
Wisconsin — 0.9%            

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

    2,059       2,148,244  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 37.6%
(Cost — $84,964,248)

 

    88,406,503  
   

 

 

 

Total Long-Term Investments — 153.4%
(Cost — $335,964,625
)

 

    360,403,537  
   

 

 

 
     Shares         
Short-Term Securities — 2.9%            

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.94% (h) (i)

    6,880,499       6,881,187  
   

 

 

 

Total Short-Term Securities — 2.9%
(Cost — $6,881,872
)

 

    6,881,187  
   

 

 

 

Total Investments — 156.3%
(Cost — $342,846,497
)

 

    367,284,724  

Other Assets Less Liabilities 1.7%

 

    4,371,237  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (22.4)%

 

    (52,927,151

VMTP Shares at Liquidation Value (35.6)%

 

    (83,700,000
   

 

 

 

Net Assets Applicable to Common Shares 100.0%

 

  $ 235,028,810  
   

 

 

 

 

 

(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)  

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.

(g)  

All or a portion of the 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 July 01, 2034, is $10,216,702. See Note 4 of the Notes to Financial Statements for details.

(h)  

Annualized 7-day yield as of period end.

 
(i)  

During the year ended April 30, 2019, investments in issuers considered to be an affiliate/affiliates 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
04/30/19
     Value at
04/30/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     733,990        6,146,509        6,880,499      $ 6,881,187      $ 46,085      $ 411      $ (685
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     24          06/19/19        $ 2,968        $ (15,931

Long U.S. Treasury Bond

     104          06/19/19          15,337          (60,844

5-Year U.S. Treasury Note

     7          06/28/19          809          (2,496
                 

 

 

 
          $ (79,271
                 

 

 

 

 

 

S CHEDULES   OF  I NVESTMENTS      41  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of year 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  

Liabilities Derivative Financial Instruments

 

                 

Futures contracts

                    

Unrealized depreciation on futures contracts (a)

   $      $      $      $      $ 79,271      $      $ 79,271  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the year ended April 30, 2019, 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

   $      $      $      $      $ (411,161    $      $ (411,161
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (91,864    $      $ (91,864
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 14,636,115  

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)

   $        $ 360,403,537        $        $ 360,403,537  

Short-Term Securities

     6,881,187                            6,881,187  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 6,881,187        $ 360,403,537        $        $ 367,284,724  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments (b)

                 

Liabilities:

                 

Interest rate contracts

   $ (79,271      $        $             —        $ (79,271
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

   $        $ (52,673,965      $             —        $ (52,673,965

VMTP Shares at Liquidation Value

              (83,700,000                 (83,700,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (136,373,965      $        $ (136,373,965
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

42    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments  

April 30, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 108.8%

 

Alabama — 1.3%  

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

  $ 1,875     $ 2,182,763  
   

 

 

 
Arizona — 1.4%  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46 (a)

    890       928,573  

County of Maricopa IDA, Refunding RB, Honorhealth, Series A, 4.13%, 09/01/38

    475       511,285  

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

    810       1,020,114  
   

 

 

 
      2,459,972  
California — 9.8%  

Benicia Unified School District, GO, CAB, Series A (NPFGC), 0.00%, 08/01/20 (b)

    2,000       1,957,580  

California Health Facilities Financing Authority, RB:

   

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

    1,110       1,117,304  

Sutter Health, Series B, 6.00%, 08/15/20 (c)

    1,585       1,675,900  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33

    445       498,320  

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

   

5.25%, 08/15/39

    80       89,398  

5.25%, 08/15/49

    195       215,186  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 02/01/42

    120       134,948  

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (a)

    730       769,435  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A, 5.00%, 12/01/46 (a)

    235       255,384  

City & County of San Francisco California Airports Commission, Refunding ARB, Series A, AMT, 4.00%, 05/01/49

    1,210       1,284,342  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 05/15/39

    400       400,548  

City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38

    185       218,441  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.00%, 06/01/47

    1,425       1,394,633  

San Diego Unified School District California, GO, CAB, Election of 2008, Series A,
0.00%, 07/01/29 (b)

    2,525       1,953,820  

San Marino Unified School District, GO, Series A (NPFGC), 0.00%, 07/01/19 (b)

    2,070       2,064,825  

State of California, GO, Various Purposes, 6.00%, 03/01/33

    1,265       1,311,894  

State of California Public Works Board, LRB, Various Capital Projects:

   

Series I, 5.00%, 11/01/38

    405       449,129  

Sub-Series I-1, 6.38%, 11/01/19 (c)

    600       614,772  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 06/01/25

    670       673,906  
   

 

 

 
      17,079,765  
Colorado — 1.9%  

City & County of Denver Colorado, RB, Capital Appreciation Bonds, Series A-2, 0.00%, 08/01/37 (b)

    1,490       740,411  

Colorado Educational & Cultural Facilities Authority, RB, Charter School, Colorado Springs, 5.50%, 07/01/40

    1,055       1,079,887  

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

    510       528,401  

University of Colorado, RB, Series A, 5.38%, 06/01/19 (c)

    920       922,797  
   

 

 

 
      3,271,496  
Security   Par
(000)
    Value  
Connecticut — 1.0%  

Connecticut Housing Finance Authority, Refunding RB, S/F Housing:

   

Sub-Series A-1, 3.85%, 11/15/43

  $ 1,370     $ 1,406,962  

Sub-Series B-1, 4.00%, 05/15/45

    265       275,823  
   

 

 

 
      1,682,785  
Delaware — 2.5%  

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

    570       600,911  

Delaware State Health Facilities Authority, RB, Beebe Medical Center Project, 5.00%, 06/01/48

    1,395       1,561,382  

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

    2,050       2,124,948  
   

 

 

 
      4,287,241  
District of Columbia — 4.2%  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road:

   

1st Senior Lien, Series A, 5.00%, 10/01/39

    255       257,920  

1st Senior Lien, Series A, 5.25%, 10/01/44

    1,000       1,011,430  

CAB, 2nd Senior Lien, Series B (AGC),
0.00%, 10/01/34 (b)

    10,170       5,968,264  
   

 

 

 
      7,237,614  
Florida — 2.5%  

Florida Development Finance Corp., Refunding RB, Virgin Trains USA Passenger Rail Project, Series A, AMT (a)(d) :

   

6.38%, 01/01/49

    325       333,534  

6.50%, 01/01/49

    470       481,548  

Florida Housing Finance Corp., RB, S/F Housing, Series 1 (Ginnie Mae, Fannie Mae & Freddie Mac), 3.75%, 07/01/42

    620       634,533  

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

    1,525       1,721,984  

Village Community Development District No.10, Special Assessment Bonds, 5.13%, 05/01/43

    1,110       1,198,312  
   

 

 

 
      4,369,911  
Georgia — 4.1%  

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

    270       311,440  

County of Griffin-Spalding Hospital Authority, RB, Revenue Anticipation Certificates, 4.00%, 04/01/42

    2,310       2,378,491  

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

    420       427,102  

Main Street Natural Gas, Inc., RB, Series A:

   

5.00%, 05/15/36

    1,500       1,817,880  

5.00%, 05/15/38

    790       960,806  

5.00%, 05/15/49

    935       1,169,760  
   

 

 

 
      7,065,479  
Hawaii — 0.4%  

State of Hawaii Harbor System, RB, Series A, 5.25%, 07/01/30

    680       706,853  
   

 

 

 
Idaho — 1.1%  

County of Power Idaho Industrial Development Corp., RB, FMC Corp. Project, AMT, 6.45%, 08/01/32

    2,000       2,008,240  
   

 

 

 
Illinois — 14.0%  

Chicago Board of Education, GO:

   

Dedicated Revenues, Series H, 5.00%, 12/01/46

    240       252,163  

Project, Series C, 5.25%, 12/01/35

    805       854,033  

Chicago Board of Education, GO, Refunding:

   

Dedicated Revenues, Series C, 5.00%, 12/01/34

    240       257,928  

Dedicated Revenues, Series D, 5.00%, 12/01/25

    435       469,857  

Dedicated Revenues, Series F, 5.00%, 12/01/24

    340       365,976  

Series C, 5.00%, 12/01/25

    360       388,847  
 

 

 

S CHEDULES   OF  I NVESTMENTS      43  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

Chicago Board of Education, GO, Series D:

   

5.00%, 12/01/46

  $ 300     $ 314,415  

5.00%, 12/01/46

    770       792,168  

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

    584       587,270  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien:

   

Series A, 5.75%, 01/01/21 (c)

    2,100       2,243,913  

Series A, 5.75%, 01/01/39

    400       424,376  

Series C, 6.50%, 01/01/21 (c)

    2,935       3,171,649  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

    530       557,910  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

    410       431,984  

Illinois Finance Authority, Refunding RB:

   

Central Dupage Health, Series B, 5.50%, 11/01/19 (c)

    800       815,312  

Southern Illinois Healthcare Enterprises, Inc., 4.00%, 03/01/35

    1,290       1,346,012  

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

   

CAB, Series B (AGM), 0.00%, 06/15/47 (b)

    9,555       2,954,024  

Series B (AGM), 5.00%, 06/15/50

    2,230       2,284,992  

Series B-2, 5.00%, 06/15/50

    1,260       1,274,225  

Railsplitter Tobacco Settlement Authority, RB (c) :

   

5.50%, 06/01/21

    230       247,986  

6.00%, 06/01/21

    500       544,190  

State of Illinois, GO:

   

5.00%, 02/01/39

    810       840,877  

Series A, 5.00%, 04/01/38

    1,920       1,986,912  

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

    315       316,354  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44

    520       568,693  
   

 

 

 
      24,292,066  
Indiana — 3.5%  

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

   

6.75%, 01/01/34

    415       478,790  

7.00%, 01/01/44

    1,000       1,162,760  

Indiana Finance Authority, RB, Series A:

   

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

    1,660       1,781,329  

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

    225       242,692  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48

    740       796,499  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51

    210       227,963  

Sisters of St. Francis Health Services, 5.25%, 11/01/19 (c)

    420       427,518  

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A, 5.75%, 05/01/31

    290       290,000  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40

    640       707,744  
   

 

 

 
      6,115,295  
Iowa — 1.0%  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

Series B, 5.25%, 12/01/50 (d)

    240       257,201  

Midwestern Disaster Area, 5.25%, 12/01/25

    940       1,012,746  

Midwestern Disaster Area, 5.88%, 12/01/26 (a)

    210       220,725  

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

    245       254,447  
   

 

 

 
      1,745,119  
Security   Par
(000)
    Value  
Kansas — 0.6%  

Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C (c) :

   

5.75%, 11/15/19

  $ 25     $ 25,528  

5.75%, 11/15/19

    1,080       1,103,706  
   

 

 

 
      1,129,234  
Kentucky — 0.7%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45

    525       564,328  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43 (e)

    635       640,321  
   

 

 

 
      1,204,649  
Louisiana — 2.7%  

Louisiana Public Facilities Authority, Refunding RB, Ochsner Clinic Foundation Project, 5.00%, 05/15/47

    1,635       1,819,379  

New Orleans Aviation Board, RB, Passenger Facility Charge, Series A, 5.25%, 01/01/41

    310       316,395  

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

   

5.50%, 05/15/30

    510       526,397  

5.25%, 05/15/31

    435       458,420  

5.25%, 05/15/32

    555       597,330  

5.25%, 05/15/33

    600       643,398  

5.25%, 05/15/35

    255       277,262  
   

 

 

 
      4,638,581  
Maine — 0.7%  

Maine Health & Higher Educational Facilities Authority, RB, Series A:

   

5.00%, 07/01/19 (c)

    45       45,247  

5.00%, 07/01/39

    105       105,465  

Maine State Housing Authority, RB, S/F Housing, Series C, 3.95%, 11/15/43

    335       349,010  

State of Maine Housing Authority, RB, M/F Housing, Series E, 4.25%, 11/15/43

    625       660,187  
   

 

 

 
      1,159,909  
Maryland — 2.2%  

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 06/01/20 (c)

    220       229,715  

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

    390       401,185  

Maryland Health & Higher Educational Facilities Authority, RB, Medstar Health Issue, Series A, 5.00%, 05/15/42

    1,760       1,989,786  

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 01/01/21 (c)

    1,095       1,176,172  
   

 

 

 
      3,796,858  
Massachusetts — 1.3%  

Massachusetts Development Finance Agency, Refunding RB:

   

Boston University, Series P, 5.45%, 05/15/59

    845       1,028,213  

Suffolk University, 4.00%, 07/01/39

    1,140       1,176,822  
   

 

 

 
      2,205,035  
Michigan — 5.5%  

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

    2,235       2,420,036  

Eastern Michigan University, RB, Series A, 4.00%, 03/01/47

    1,170       1,229,108  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:

   

5.50%, 05/15/20 (c)

    380       394,767  

5.50%, 05/15/36

    310       319,932  
 

 

 

44    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Michigan (continued)  

Michigan Finance Authority, Refunding RB:

   

Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44

  $ 455     $ 486,700  

Henry Ford Health System, 4.00%, 11/15/46

    570       593,330  

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.75%, 11/15/19 (c)

    1,520       1,553,364  

Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.00%, 06/30/48

    490       558,723  

State of Michigan Housing Development Authority, RB:

   

M/F Housing, Series A, 4.15%, 10/01/53

    940       973,191  

S/F Housing, Series A, 4.00%, 06/01/49

    265       275,939  

S/F Housing, Series C, 4.13%, 12/01/38

    730       773,508  
   

 

 

 
      9,578,598  
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       137,114  

State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43

    130       139,936  
   

 

 

 
      277,050  
New Hampshire — 2.0%  

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

   

Series B, 4.63%, 11/01/42

    735       744,261  

Series C, AMT, 4.88%, 11/01/42

    420       428,450  

New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 08/01/19 (c)

    1,530       1,546,402  

New Hampshire Housing Finance Authority, RB, M/F Housing, Cimarron, Whittier Falls & Marshall (FHA), 4.00%, 07/01/52

    800       826,408  
   

 

 

 
      3,545,521  
New Jersey — 9.1%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    530       570,524  

5.25%, 11/01/44

    790       849,187  

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

    560       563,730  

New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23

    1,040       1,120,069  

New Jersey EDA, RB:

   

Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29

    990       1,079,902  

S/F Housing, State House Project, Series B, 4.50%, 06/15/40

    1,270       1,325,410  

Series WW, 5.00%, 06/15/36

    210       226,840  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31

    1,125       1,255,196  

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/45

    715       801,958  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program Bonds, Series AA, 4.13%, 06/15/39

    1,040       1,062,017  

Transportation Program, Series AA, 5.00%, 06/15/44

    330       350,513  

Transportation Program, Series AA, 5.00%, 06/15/44

    610       639,859  

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

    1,025       1,074,600  

Transportation System, Series B, 5.25%, 06/15/36

    1,235       1,288,747  

New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/36

    380       423,719  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Sub-Series B, 5.00%, 06/01/46

    3,105       3,238,391  
   

 

 

 
      15,870,662  
Security   Par
(000)
    Value  
New York — 5.4%  

City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 02/01/42

  $ 740     $ 796,499  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A,
6.25%, 06/01/41 (a)

    1,000       1,024,380  

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

    555       555,022  

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

    257       279,493  

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

    1,020       1,006,393  

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/38

    1,255       1,423,107  

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       634,551  

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

    1,495       1,608,515  

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

    175       192,894  

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

    440       483,226  

Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8:

   

6.00%, 12/01/36

    650       688,214  

6.00%, 12/01/42

    630       666,742  
   

 

 

 
      9,359,036  
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       337,464  
   

 

 

 
Ohio — 1.6%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.88%, 06/01/47

    1,855       1,757,612  

County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40

    350       379,120  

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

    150       157,640  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53

    420       449,014  
   

 

 

 
      2,743,386  
Oklahoma — 0.6%  

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

    280       296,159  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.50%, 08/15/57

    625       716,812  
   

 

 

 
      1,012,971  
Oregon — 0.1%  

State of Oregon Housing & Community Services Department, RB, S/F Housing, Mortgage Program, Series C, 3.95%, 07/01/43

    210       218,646  
   

 

 

 
Pennsylvania — 4.8%  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42

    335       360,296  

County of Berks IDA, Refunding RB, Tower Health Projects, 5.00%, 11/01/50

    795       893,628  

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

    470       489,669  

Pennsylvania Economic Development Financing Authority, RB:

   

American Water Co. Project, 6.20%, 04/01/39

    1,830       1,836,149  
 

 

 

S CHEDULES   OF  I NVESTMENTS      45  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Pennsylvania (continued)  

AMT, 5.00%, 06/30/42

  $ 440     $ 482,064  

Pennsylvania Rapid Bridge Replacement, 5.00%, 12/31/38

    390       430,037  

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

    800       840,568  

Pennsylvania Housing Finance Agency, RB, S/F Housing, Series 128B, 3.85%, 04/01/38

    965       999,547  

Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing Mortgage, Series 119, 3.50%, 10/01/36

    1,285       1,312,191  

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

    585       651,672  
   

 

 

 
      8,295,821  
Puerto Rico — 3.1%  

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

   

5.50%, 05/15/39

    325       328,624  

5.63%, 05/15/43

    355       358,894  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Senior Lien, Series A:

   

5.00%, 07/01/33

    1,355       1,332,981  

5.13%, 07/01/37

    385       378,744  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A:

   

6.00%, 07/01/38

    400       400,500  

6.00%, 07/01/44

    725       725,906  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:

   

4.50%, 07/01/34

    15       15,217  

4.75%, 07/01/53

    601       574,015  

5.00%, 07/01/58

    1,316       1,296,997  
   

 

 

 
      5,411,878  
Rhode Island — 2.2%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    420       450,421  

Series B, 4.50%, 06/01/45

    1,375       1,351,694  

Series B, 5.00%, 06/01/50

    1,895       1,943,834  
   

 

 

 
      3,745,949  
South Carolina — 5.1%  

South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 4.25%, 05/01/48

    1,385       1,450,303  

State of South Carolina Ports Authority, ARB:

   

5.25%, 07/01/20 (c)

    1,650       1,718,937  

AMT, 5.00%, 07/01/55

    710       804,068  

AMT, 5.25%, 07/01/55

    670       747,787  

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

    2,040       2,265,379  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

    1,635       1,835,598  
   

 

 

 
      8,822,072  
Tennessee — 0.9%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45

    720       773,935  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40

    360       403,852  

Greeneville Health & Educational Facilities Board, Refunding RB, Ballad Health Obligation Group, Series A, 4.00%, 07/01/40

    375       386,584  
   

 

 

 
      1,564,371  
Texas — 4.9%  

Central Texas Regional Mobility Authority, Refunding RB:

   

Senior Lien, 6.25%, 01/01/21 (c)

    1,070       1,148,409  
Security   Par
(000)
    Value  
Texas (continued)  

Sub-Lien, 5.00%, 01/01/33

  $ 180     $ 195,509  

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       284,990  

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       1,026,463  

0.00%, 09/15/41

    1,395       536,601  

La Vernia Higher Education Finance Corp., RB, Kipp, Inc., Series A, 6.38%, 08/15/19 (c)

    320       324,285  

New Hope Cultural Education Facilities Corp., RB, Collegiate Housing Tarleton State University Project, 5.00%, 04/01/35

    145       155,404  

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 09/01/31 (b) (c)

    1,015       473,173  

North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49

    610       650,974  

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

    195       206,349  

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

   

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

    1,165       1,231,207  

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

    1,300       1,341,457  

Texas Transportation Commission, RB, First Tier Toll Revenue (b) :

   

0.00%, 08/01/35

    270       141,901  

0.00%, 08/01/36

    145       72,134  

0.00%, 08/01/37

    195       91,303  

0.00%, 08/01/38

    200       88,466  

0.00%, 08/01/44

    870       276,129  

0.00%, 08/01/45

    1,135       341,851  
   

 

 

 
      8,586,605  
Virginia — 1.1%  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 01/01/32

    400       428,336  

6.00%, 01/01/37

    1,345       1,483,844  
   

 

 

 
      1,912,180  
Washington — 1.0%  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40

    390       430,864  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45

    1,195       1,316,842  
   

 

 

 
      1,747,706  
West Virginia — 0.9%  

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

    1,605       1,650,052  
   

 

 

 
Wisconsin — 3.2%  

Public Finance Authority, RB, Wakemed Hospital, Series A, 4.00%, 10/01/49

    2,000       2,079,320  

State of Wisconsin, Refunding RB, Series A,
6.00%, 05/01/19 (c)

    1,620       1,620,000  

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

    1,235       1,255,044  

Wisconsin Housing & Economic Development Authority, RB, M/F Housing, Series A, 4.45%, 05/01/57

    575       604,630  
   

 

 

 
    5,558,994  
   

 

 

 

Total Municipal Bonds — 108.8%
(Cost — $174,644,975)

 

    188,877,827  
   

 

 

 
 

 

 

46    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds Transferred to Tender Option Bond
Trusts (f) — 52.0%

 

Arizona — 0.6%  

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

  $ 915     $ 968,408  
   

 

 

 
California — 7.0%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, 4.00%, 04/01/42 (g)

    1,638       1,749,308  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B,
5.00%, 11/01/19 (c)

    4,770       4,855,033  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.00%, 05/15/40

    2,967       3,068,494  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    1,635       1,890,123  

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

    554       558,756  
   

 

 

 
    12,121,714  
Colorado — 1.8%  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 07/01/34 (g)

    1,080       1,084,914  

County of Adams Colorado, COP, Refunding, 4.00%, 12/01/45

    1,950       2,044,643  
   

 

 

 
    3,129,557  
District of Columbia — 0.3%  

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

    510       531,876  
   

 

 

 
Florida — 3.7%  

City of Tampa Florida, RB, Baycare Health System, Series A, 4.00%, 11/15/46

    1,932       2,025,047  

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

    2,840       2,973,418  

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

    1,290       1,472,965  
   

 

 

 
    6,471,430  
Georgia — 0.6%  

Georgia Housing & Finance Authority, Refunding RB, S/F Mortgage Bonds, Series A, 3.70%, 06/01/49

    1,071       1,093,764  
   

 

 

 
Illinois — 0.6%  

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

    1,004       1,063,307  
   

 

 

 
Louisiana — 0.8%  

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

    1,245       1,312,230  
   

 

 

 
Maine — 0.4%  

State of Maine Housing Authority, RB, M/F Housing, Series E, 4.15%, 11/15/38

    701       741,490  
   

 

 

 
Maryland — 2.2%  

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

    1,515       1,741,907  

State of Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/42

    1,740       2,029,443  
   

 

 

 
    3,771,350  
Massachusetts — 3.3%  

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

    1,982       2,322,760  

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

    3,211       3,424,978  
   

 

 

 
      5,747,738  
Security   Par
(000)
    Value  
Michigan — 1.4%  

State of Michigan Housing Development Authority, RB, M/F Housing, Series A, 4.05%, 10/01/48

  $ 2,337     $ 2,426,291  
   

 

 

 
Nebraska — 0.9%  

Nebraska Investment Finance Authority, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 3.70%, 03/01/47

    1,521       1,539,186  
   

 

 

 
Nevada — 1.5%  

County of Clark Nevada, GO, Stadium Improvement, Series A, 5.00%, 05/01/48

    2,260       2,643,913  
   

 

 

 
New York — 10.3%  

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

    1,080       1,141,771  

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       813,645  

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

    1,395       1,441,518  

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

   

5.75%, 02/15/21 (c)

    501       536,631  

5.75%, 02/15/47

    308       330,119  

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

    2,337       2,697,936  

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

    5,400       5,864,231  

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

    3,250       3,556,181  

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

    1,350       1,562,193  
   

 

 

 
      17,944,225  
North Carolina — 0.9%  

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55

    1,320       1,499,870  
   

 

 

 
Pennsylvania — 1.8%  

Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/36 (g)

    1,559       1,690,208  

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

    1,229       1,443,243  
   

 

 

 
      3,133,451  
Rhode Island — 0.5%  

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       778,080  
   

 

 

 
Texas — 10.0%  

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

    1,395       1,430,917  

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

    1,260       1,383,209  

County of Harris Texas, RB, Toll Road, Senior Lien, Series A:

   

5.00%, 08/15/19 (c) (g)

    1,905       1,921,108  

5.00%, 08/15/38 (g)

    1,457       1,469,482  

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

    1,710       1,828,178  

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

    1,858       2,186,084  

County of Hidalgo Texas, GOL, Certificates of Obligation, Series A, 4.00%, 08/15/43

    2,297       2,443,887  

Howe Independent School District, GO, School Building (PSF-GTD), 4.00%, 08/15/43

    1,095       1,139,282  
 

 

 

S CHEDULES   OF  I NVESTMENTS      47  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(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 (a)

  $ 1,499     $ 1,546,346  

University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43

    1,801       1,961,447  
   

 

 

 
    17,309,940  
Utah — 0.8%  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19 (c)

    1,395       1,408,256  
   

 

 

 
Virginia — 0.9%  

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

    1,553       1,600,270  
   

 

 

 
Washington — 0.9%  

Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.13%, 08/15/43

    1,445       1,517,526  
   

 

 

 
Wisconsin — 0.8%  

Wisconsin Housing & Economic Development Authority, RB, M/F Housing, Series A, 4.30%, 11/01/53

    1,395       1,469,907  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 52.0%
(Cost — $87,062,511)

 

    90,223,779  
   

 

 

 

Total Long-Term Investments — 160.8%
(Cost — $261,707,486)

 

    279,101,606  
   

 

 

 
    
Security
  Shares     Value  

Short-Term Securities — 0.0%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.94% (h)(i)

    53,945     $ 53,950  
   

 

 

 

Total Short-Term Securities — 0.0%
(Cost — $53,950)

 

    53,950  
   

 

 

 

Total Investments — 160.8%
(Cost — $261,761,436)

 

    279,155,556  

Other Assets Less Liabilities — 1.8%

 

    3,134,156  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (30.9)%

 

    (53,662,154

VMTP Shares, at Liquidation Value — (31.7)%

 

    (55,000,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 173,627,558  
   

 

 

 

 

(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)

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.

(g)

All or a portion of the 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 July 01, 2034 is $8,616,467. See Note 4 of the Notes to Financial Statements for details.

(h)

Annualized 7-day yield as of period end.

 
(i)

During the year ended April 30, 2019, investments in issuers considered to be an affiliate/affiliates 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
04/30/19
     Value at
04/30/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     978,065        (924,120      53,945      $ 53,950      $ 9,978      $ 254      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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          06/19/19        $ 2,226        $ (12,627

Long U.S. Treasury Bond

     98          06/19/19          14,452          (76,713

5-Year U.S. Treasury Note

     3          06/28/19          347          (2,247
                 

 

 

 
          $ (91,587
                 

 

 

 

 

 

48    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of year ended, 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  

Liabilities Derivative Financial Instruments

 

                 

Futures contracts

                    

Unrealized depreciation on futures contracts (a)

   $      $      $      $      $ 91,587      $      $ 91,587  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the year ended April 30, 2019, the effect of derivative financial instruments in the Statements of Operation 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

   $      $      $      $      $ (438,606    $      $ (438,606
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (98,539    $      $ (98,539
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 12,275,158  

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)

   $        $ 279,101,606        $        $ 279,101,606  

Short-Term Securities

     53,950                            53,950  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 53,950        $ 279,101,606        $        $ 279,155,556  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments (b)

 

Liabilities:

 

Interest rate contracts

   $ (91,587      $        $             —        $ (91,587
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

   $        $ (53,408,501      $        $ (53,408,501

VMTP Shares at Liquidation Value

              (55,000,000                 (55,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (108,408,501      $             —        $ (108,408,501
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

S CHEDULES   OF  I NVESTMENTS      49  


Schedule of Investments  

April 30, 2019

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds 135.2%

 

Alabama 1.7%

 

City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 06/01/19 (a)

  $ 2,330     $ 2,338,062  

City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35

    565       609,810  
   

 

 

 
      2,947,872  
Arizona 1.0%  

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

    1,410       1,775,754  
   

 

 

 
California 19.2%  

California Educational Facilities Authority, RB, Stanford University, Series V-1, 5.00%, 05/01/49

    1,450       2,030,217  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20 (a)

    1,730       1,829,215  

California Municipal Finance Authority, ARB, Senior Lien, Linxs APM Project, AMT, 5.00%, 12/31/43

    800       913,336  

Central Unified School District, GO, Election of 2008, Series A (AGC), 5.63%, 08/01/19 (a)

    1,325       1,338,594  

City & County of San Francisco California Airports Commission, Refunding ARB, AMT, Series A:

   

2nd, 5.50%, 05/01/28

    1,085       1,235,479  

2nd, 5.25%, 05/01/33

    850       947,929  

5.00%, 05/01/44

    1,090       1,206,924  

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       2,546,184  

5.75%, 03/01/34

    2,180       2,314,397  

City of Sunnyvale California, Refunding RB, 5.25%, 04/01/20 (a)

    1,605       1,661,352  

County of Riverside Public Financing Authority, RB, Capital Facilities Project, 5.25%, 11/01/40

    2,500       2,936,500  

Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33

    1,420       1,644,885  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 08/01/20 (a)

    1,000       1,047,030  

Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 08/01/21 (a)

    1,335       1,457,513  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series J:

   

5.25%, 05/15/23 (a)

    3,170       3,629,840  

5.25%, 05/15/38

    900       1,012,005  

State of California Public Works Board, LRB, Various Capital Projects, Series I:

   

5.50%, 11/01/30

    1,500       1,719,855  

5.50%, 11/01/31

    2,465       2,815,104  

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33

    725       815,154  

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/40

    540       630,094  
   

 

 

 
      33,731,607  
Colorado 2.2%  

City & County of Denver Colorado Airport System, ARB, Series A, AMT:

   

5.50%, 11/15/28

    1,000       1,136,720  

5.50%, 11/15/30

    340       384,448  

5.50%, 11/15/31

    405       457,018  

Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 05/15/19 (a)

    1,900       1,903,021  
   

 

 

 
      3,881,207  
Security   Par
(000)
    Value  
Connecticut 1.0%  

State of Connecticut, GO, Series A, 5.00%, 04/15/38

  $ 985     $ 1,148,806  

State of Connecticut Health & Educational Facility Authority, Refunding RB, Sacred Heart University Issue, Series I-1, 5.00%, 07/01/42

    590       670,765  
   

 

 

 
      1,819,571  
Delaware 0.5%  

State of Delaware Health Facilities Authority, RB, Beebe Medical Center Project, 5.00%, 06/01/43

    820       923,796  
   

 

 

 
Florida 17.5%  

Central Florida Expressway Authority, Refunding RB, Senior Lien, 5.00%, 07/01/48

    2,760       3,220,202  

County of Broward Florida Airport System, ARB, Series A, AMT, 5.00%, 10/01/45

    2,845       3,170,695  

County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT, 5.50%, 10/01/29

    1,735       1,985,222  

County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32

    1,500       1,594,290  

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

    70       70,170  

County of Miami-Dade Florida, RB, Seaport Department:

   

Series A, 5.38%, 10/01/33

    1,015       1,139,581  

Series A, 6.00%, 10/01/38

    1,000       1,147,410  

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

    460       529,262  

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

    615       700,774  

County of Miami-Dade Florida Aviation, Refunding ARB, Series A, AMT, 5.00%, 10/01/31

    2,900       3,141,106  

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

    3,465       3,842,616  

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

    4,645       4,690,289  

Reedy Creek Florida Improvement District, GO, Series A, 5.25%, 06/01/32

    1,040       1,171,165  

Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/21 (a)

    3,995       4,337,891  
   

 

 

 
      30,740,673  
Georgia — 0.7%  

County of Fulton Development Authority, RB, Georgia Institute of Technology, 4.00%, 06/15/49

    470       504,935  

Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49

    555       694,350  
   

 

 

 
      1,199,285  
Hawaii — 1.5%  

State of Hawaii Airports System, ARB, Series A, AMT, 5.00%, 07/01/45

    1,500       1,678,890  

State of Hawaii Airports System, COP, AMT:

   

5.25%, 08/01/25

    425       476,183  

5.25%, 08/01/26

    460       513,029  
   

 

 

 
      2,668,102  
Illinois — 13.6%  

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%, 01/01/41

    1,000       1,084,520  

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

   

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

    960       1,025,789  

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

    185       196,274  

3rd Lien, Series C, 6.50%, 01/01/21 (a)

    5,225       5,646,292  

Senior Lien, Series D, AMT, 5.00%, 01/01/42

    430       484,980  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts:

   

5.25%, 12/01/36

    1,000       1,054,340  

5.25%, 12/01/40

    1,790       1,884,261  
 

 

 

50    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

City of Chicago Illinois Wastewater Transmission, RB, 2nd Lien, 5.00%, 01/01/42

  $ 2,050     $ 2,149,240  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago:

   

5.50%, 12/01/38

    1,250       1,317,025  

5.25%, 12/01/43

    1,505       1,567,623  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 5.00%, 02/15/41

    555       633,033  

Railsplitter Tobacco Settlement Authority, RB (a) :

   

5.50%, 06/01/21

    1,405       1,514,871  

6.00%, 06/01/21

    400       435,352  

State of Illinois, GO:

   

5.25%, 02/01/31

    875       931,481  

5.25%, 02/01/32

    1,355       1,438,861  

5.50%, 07/01/33

    2,000       2,131,740  

5.50%, 07/01/38

    425       449,429  
   

 

 

 
      23,945,111  
Indiana — 2.2%  

Indianapolis Local Public Improvement Bond Bank, RB, Series F, 5.25%, 02/01/36

    3,055       3,226,294  

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

    565       610,725  
   

 

 

 
    3,837,019  
Iowa — 0.7%  

State of Iowa Finance Authority, RB, Lifespace Communities, Series A, 5.00%, 05/15/48

    1,100       1,167,067  
   

 

 

 
Louisiana — 1.7%  

Lake Charles Louisiana Harbor & Terminal District, RB, Series B, AMT (AGM), 5.50%, 01/01/29

    1,500       1,691,550  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 05/15/29

    1,215       1,217,065  
   

 

 

 
    2,908,615  
Maryland — 2.8%  

County of Howard Maryland Housing Commission, RB, M/F Housing, Woodfield Oxford Square Apartments, 5.00%, 12/01/42

    1,430       1,617,959  

Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/34

    2,700       3,216,456  
   

 

 

 
    4,834,415  
Massachusetts — 2.0%  

Massachusetts Development Finance Agency, RB:

   

Emerson College Issue, Series A, 5.00%, 01/01/47

    245       274,013  

Emerson College Issue, Series A, 5.25%, 01/01/42

    545       619,927  

UMass Dartmouth Student Housing Project, 5.00%, 10/01/43

    1,325       1,460,839  

Massachusetts Development Finance Agency, Refunding RB, Series A:

   

Emerson College, 5.00%, 01/01/40

    435       493,943  

4.00%, 07/01/44

    130       133,810  

Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42

    485       486,086  
   

 

 

 
    3,468,618  
Michigan — 0.3%  

Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.00%, 06/30/48

    520       592,930  
   

 

 

 
Minnesota — 0.3%  

County of St. Paul Minnesota Housing & Redevelopment Authority, Refunding RB, Fairview Health Services, Series A, 4.00%, 11/15/43

    575       608,603  
   

 

 

 
Security   Par
(000)
    Value  
Mississippi — 3.6%  

Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40

  $ 2,595     $ 3,073,648  

Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 08/01/23 (a)

    1,000       1,147,940  

State of Mississippi, RB, Series A:

   

5.00%, 10/15/37

    330       387,502  

4.00%, 10/15/38

    1,650       1,744,974  
   

 

 

 
    6,354,064  
Montana — 0.1%  

Montana State Board of Housing, RB, S/F, Series B-2:

   

3.50%, 12/01/42

    100       99,867  

3.60%, 12/01/47

    155       154,749  
   

 

 

 
    254,616  
Nevada — 4.9%  

City of Carson City Nevada, Refunding RB, Carson Tahoe Regional Healthcare Project, 5.00%, 09/01/42

    650       718,861  

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 07/01/39

    1,410       1,438,806  

County of Clark Nevada, GO, Stadium Improvement, Series A:

   

5.00%, 06/01/36

    1,205       1,446,338  

5.00%, 06/01/37

    3,000       3,587,730  

County of Clark Nevada Water Reclamation District, GO, Series A, 5.25%, 07/01/19 (a)

    1,500       1,509,075  
   

 

 

 
    8,700,810  
New Jersey — 10.9%  

New Jersey EDA, RB:

   

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

    3,000       3,311,940  

Private Activity Bond, Goethals Bridge Replacement Project, AMT (AGM), 5.00%, 01/01/31

    790       875,675  

State Government Buildings Project, Series A, 5.00%, 06/15/47

    2,500       2,711,275  

New Jersey Health Care Facilities Financing Authority, RB, Virtua Health, Series A (AGC), 5.50%, 07/01/38

    2,100       2,113,398  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing, Series BB, AMT, 3.80%, 10/01/32

    1,405       1,458,151  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program Bonds, Series S, 5.25%, 06/15/43

    1,740       1,956,839  

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

    1,890       2,030,824  

Transportation System, Series B, 5.25%, 06/15/36

    1,000       1,043,520  

New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/32

    1,600       1,819,680  

Tobacco Settlement Financing Corp., Refunding RB, Series A, 5.25%, 06/01/46

    1,390       1,554,840  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Sub-Series B, 5.00%, 06/01/46

    305       318,103  
   

 

 

 
    19,194,245  
New York — 5.8%  

City of New York New York Municipal Water Finance Authority, Refunding RB, 2nd General Resolution:

   

5.25%, 06/15/40

    3,410       3,424,764  

Water & Sewer System, Series EE, 5.38%, 06/15/43

    1,305       1,377,493  

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

   

5.75%, 02/15/21 (a)

    1,555       1,670,148  

5.75%, 02/15/47

    955       1,019,606  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 166th Series, 5.25%, 07/15/36

    2,000       2,113,940  

TSASC, Inc., Refunding RB, Series A, 5.00%, 06/01/41

    535       575,670  
   

 

 

 
    10,181,621  
 

 

 

S CHEDULES   OF  I NVESTMENTS      51  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Ohio — 1.9%  

State of Ohio, RB, Cleveland Clinic Health System Obligation, Series B, 4.00%, 01/01/46 (b)

  $ 1,010     $ 1,080,942  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 02/15/31

    2,000       2,234,280  
   

 

 

 
    3,315,222  
Oregon — 0.4%  

State of Oregon Health & Science University, RB, Series A, 5.00%, 07/01/42

    600       699,072  
   

 

 

 
Pennsylvania — 6.6%  

Altoona Area School District, GO, 5.00%, 12/01/36

    110       125,133  

County of Delaware Springfield School District, GO:

   

5.00%, 03/01/40

    865       1,007,647  

5.00%, 03/01/43

    590       685,615  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 5.00%, 09/01/48

    980       1,119,121  

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/36

    1,290       1,523,735  

Pennsylvania Housing Finance Agency, RB, S/F, Series 125B, 3.65%, 10/01/42

    1,000       1,025,460  

Pennsylvania Turnpike Commission, Refunding RB, 2nd Series, Subordinate, Special Motor License Fund, 5.00%, 12/01/41

    1,250       1,426,725  

Pennsylvania Turnpike Commission, RB, Sub-Series B-1, 5.25%, 06/01/47

    1,170       1,343,336  

Swarthmore Borough Authority, RB, Swarthmore College, 5.00%, 09/15/48

    1,900       2,284,674  

Township of Bristol Pennsylvania School District, GO, 5.25%, 06/01/37

    1,000       1,108,600  
   

 

 

 
    11,650,046  
South Carolina — 5.6%  

County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38

    2,180       2,478,464  

County of Charleston South Carolina Airport District, ARB, Series A, AMT:

   

5.50%, 07/01/38

    1,000       1,115,930  

6.00%, 07/01/38

    1,695       1,931,978  

5.50%, 07/01/41

    1,000       1,113,420  

State of South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/43

    800       911,336  

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

    1,095       1,228,316  

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

    1,000       1,100,320  
   

 

 

 
    9,879,764  
Tennessee — 1.6%  

Metropolitan Nashville Airport Authority, ARB, Series B, AMT, 5.00%, 07/01/40

    2,500       2,768,375  
   

 

 

 
Texas — 11.7%  

City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 03/01/37

    1,360       1,510,471  

City of Houston Texas Airport System Revenue, Refunding RB, Sub-Series D, 5.00%, 07/01/37

    1,175       1,403,561  

City of Houston Texas Combined Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 05/15/19 (a)

    3,790       3,795,988  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/35

    1,500       1,770,990  

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

   

Series A, 5.00%, 11/01/38

    2,965       3,074,082  

Series H, 5.00%, 11/01/37

    2,200       2,334,112  
Security   Par
(000)
    Value  
Texas (continued)  

Lower Colorado River Authority, Refunding RB, 5.50%, 05/15/33

  $ 1,240     $ 1,403,432  

North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 09/01/21 (a)

    3,150       3,421,530  

North Texas Tollway Authority, Refunding RB, 1st Tier, Series A, 5.00%, 01/01/48

    1,060       1,229,749  

Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38

    620       689,012  
   

 

 

 
    20,632,927  
Vermont — 1.0%  

University of Vermont & State Agricultural College, Refunding RB, 5.00%, 10/01/43

    1,470       1,702,466  
   

 

 

 
Virginia — 1.8%  

City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 01/01/43

    570       614,842  

Virginia Small Business Financing Authority, RB, Transform 66 P3 Project, AMT, 5.00%, 12/31/49

    2,330       2,553,610  
   

 

 

 
    3,168,452  
Washington — 9.4%  

City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 02/01/21 (a)

    1,375       1,462,079  

Port of Seattle Washington, ARB, AMT:

   

Intermediate Lien, Series C, 5.00%, 05/01/37

    1,450       1,672,198  

Series A, 5.00%, 05/01/43

    385       438,007  

State of Washington, COP, Series B:

   

5.00%, 07/01/36

    1,000       1,194,300  

5.00%, 07/01/37

    3,910       4,645,979  

5.00%, 07/01/38

    650       768,514  

State of Washington, GO:

   

Series C, 5.00%, 02/01/36

    4,300       5,153,421  

Various Purposes, Series B, 5.25%, 02/01/21 (a)

    1,075       1,143,080  
   

 

 

 
    16,477,578  
Wisconsin — 0.8%  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Milwaukee Regional Medical Center Thermal Service, 5.00%, 04/01/44

    1,205       1,405,114  
   

 

 

 
Wyoming — 0.2%  

State of Wyoming Municipal Power Agency, Inc., Refunding RB, Series A (BAM), 5.00%, 01/01/42

    330       375,326  
   

 

 

 

Total Municipal Bonds — 135.2%
(Cost — $224,648,417)

 

    237,809,943  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts (c)

 

California — 3.0%  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    4,500       5,202,172  
   

 

 

 
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       2,263,948  
   

 

 

 
Connecticut — 1.1%  

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

    1,771       2,015,775  
   

 

 

 
Illinois — 0.3%  

City of Chicago Illionis Waterworks, Refunding RB, 2017 2nd Lien, Water Revenue Project (AGM), 5.25%, 11/01/33

    480       480,235  
   

 

 

 
 

 

 

52    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Maryland — 4.2%  

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

  $ 1,499     $ 1,723,707  

Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/47

    4,894       5,691,026  
   

 

 

 
    7,414,733  
Michigan — 2.0%  

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

    3,020       3,463,034  
   

 

 

 
Nevada — 2.1%  

County of Clark Nevada Water Reclamation District, GO, Series B, 5.50%, 07/01/19 (a)

    3,749       3,773,041  
   

 

 

 
New York — 4.4%  

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

    4,530       4,919,438  

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

    2,660       2,910,597  
   

 

 

 
    7,830,035  
Pennsylvania — 4.6%  

Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/38 (d)

    3,650       3,932,547  

County of Northampton General Purpose Authority, Refunding RB, Lafayette College, 4.00%, 11/01/38 (d)

    2,596       2,764,793  

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/38

    1,184       1,339,591  
   

 

 

 
    8,036,931  
Utah — 0.6%  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19 (a)

    1,005       1,014,550  
   

 

 

 
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     $ 2,698,891  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 25.1%
(Cost — $42,252,586)

 

    44,193,345  
 

 

 

 

Total Long-Term Investments — 160.3%
(Cost — $266,901,003)

 

    282,003,288  
 

 

 

 
     Shares         
Short-Term Securities — 1.4%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.94% (e)(f)

    2,454,984       2,455,229  
   

 

 

 

Total Short-Term Securities — 1.4%
(Cost — $2,455,229)

 

    2,455,229  
 

 

 

 

Total Investments — 161.7%
(Cost — $269,356,232)

 

    284,458,517  

Other Assets Less Liabilities — 1.5%

 

    2,465,553  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (13.7)%

 

    (24,013,775

VMTP Shares at Liquidation Value — (49.5)%

 

    (87,000,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 175,910,295  
 

 

 

 

 

(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 the 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 November 01, 2026, is $7,322,892.

(e)  

Annualized 7-day yield as of period end.

 
(f)  

During the year ended April 30, 2019, investments in issuers considered to be an affiliate/affiliates 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
04/30/19
     Value at
04/30/19
     Income      Net Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     2,822,221        (367,237      2,454,984      $ 2,455,229      $ 40,640      $ 2,931      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     32          06/19/19        $3,958      $ (11,971

Long U.S. Treasury Bond

     72          06/19/19        10,618        (42,335

5-Year U.S. Treasury Note

     15          06/28/19        1,735        (6,612
                 

 

 

 
                  $ (60,918
                 

 

 

 

 

 

S CHEDULES   OF  I NVESTMENTS      53  


Schedule of Investments   (continued)

April 30, 2019

   BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of year 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  

Liabilities — Derivative Financial Instruments

             

Futures contracts

             

Unrealized depreciation on futures contracts (a)

  $     $     $     $     $ 60,918     $     $ 60,918  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a)  

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the year ended April 30, 2019, 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

   $      $      $      $      $ (434,638    $      $ (434,638
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures Contracts

   $      $      $      $      $ (110,095    $      $ (110,095
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 12,598,779  

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)

   $        $ 282,003,288        $        $ 282,003,288  

Short-Term Securities

     2,455,229                            2,455,229  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,455,229        $ 282,003,288        $        $ 284,458,517  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments (b)

 

Liabilities:

 

Interest rate contracts

   $ (60,918      $        $        $ (60,918
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  

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

 
  (b)  

Derivative financial instruments are futures contracts. Futures contracts 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

   $        $ (23,917,620      $        $ (23,917,620

VMTP Shares at Liquidation Value

              (87,000,000                 (87,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (110,917,620      $        $ (110,917,620
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

54    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments  

April 30, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 135.0%

 

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     $ 4,630,968  
   

 

 

 
Arizona — 4.1%  

Arizona Board of Regents, RB, University of Arizona, 5.00%, 08/01/28

    2,000       2,131,340  

Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 02/01/30

    2,685       2,889,946  

Arizona Industrial Development Authority, RB (b) :

   

Academies of Math & Science Projects, Series B, 4.25%, 07/01/27

    545       557,835  

Doral Academy of Nevada-Fire Mesa and Red Rock Campus Projects, Series A, 3.55%, 07/15/29

    1,360       1,364,760  

City of Phoenix Arizona IDA, RB, Facility, Legacy Traditional Schools Project, Series A, 5.75%, 07/01/24 (b)

    750       805,110  

City of Phoenix Arizona IDA, Refunding RB, Downtown Phoenix Student Housing, Series A:

   

5.00%, 07/01/25

    300       340,494  

5.00%, 07/01/29

    175       205,007  

City of Tucson Arizona, COP, Refunding, (AGC), 4.00%, 07/01/20

    2,325       2,385,241  

County of Maricopa Arizona IDA, Refunding RB, Honorhealth, Series A:

   

5.00%, 09/01/32

    1,000       1,181,500  

5.00%, 09/01/33

    800       942,776  

5.00%, 09/01/34

    1,000       1,172,820  

County of Pinal Arizona Electric District No. 3, Refunding RB, 5.00%, 07/01/21 (a)

    1,600       1,714,864  

Glendale Union School District No. 205, GO, Series C (BAM):

   

5.00%, 07/01/24

    1,945       2,183,010  

5.00%, 07/01/27

    500       557,365  

Phoenix-Mesa Gateway Airport Authority, RB, Mesa Project, AMT:

   

5.00%, 07/01/27

    700       756,812  

5.00%, 07/01/32

    1,925       2,070,241  

Scottsdale IDA, Refunding RB, Scottsdale Healthcare, Series C (AGM), 5.00%, 09/01/35

    2,050       2,130,913  

State of Arizona, COP, Department of Administration, Series A (AGM), 4.25%, 10/01/23

    1,000       1,011,000  
   

 

 

 
      24,401,034  
Arkansas — 0.7%  

City of Benton Arkansas, RB, 5.00%, 06/01/29

    1,055       1,201,613  

University of Arkansas, Refunding RB, 5.00%, 03/01/31

    2,315       2,661,810  
   

 

 

 
      3,863,423  
California — 5.3%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.00%, 08/15/20 (a)

    2,135       2,230,349  

City of San Jose California, Refunding ARB, Series A-1, AMT, 5.00%, 03/01/25

    2,000       2,109,880  

County of Santa Barbara California, COP, Series B, AMT, 5.25%, 12/01/33

    10,330       12,605,802  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1:

   

5.00%, 06/01/33

    6,715       7,655,100  

5.00%, 06/01/35

    5,785       6,531,728  

State of California, GO, 5.50%, 04/01/28

    15       15,048  
   

 

 

 
      31,147,907  
Security   Par
(000)
    Value  
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     $ 6,003,000  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatiives, Series B-1, 5.00%, 07/01/38

    270       288,765  

Park Creek Metropolitan District, Refunding, Tax Allocation Bonds, 5.00%, 12/01/34

    500       560,305  

University of Northern Colorado, Refunding RB, Series A, 5.00%, 06/01/31

    2,000       2,263,280  
   

 

 

 
      9,115,350  
Connecticut — 2.9%  

Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F, 5.00%, 07/01/21 (a)

    4,530       4,840,169  

State of Connecticut, GO, Series A:

   

5.00%, 04/15/30

    5,000       5,995,650  

5.00%, 04/15/31

    4,000       4,762,520  

5.00%, 04/15/34

    1,185       1,420,341  
   

 

 

 
      17,018,680  
Delaware — 0.8%  

County of Kent Delaware, RB, CHF-Dover, LLC-Delaware State University Project, Series A:

   

5.00%, 07/01/29

    880       1,005,488  

5.00%, 07/01/30

    1,030       1,169,987  

5.00%, 07/01/31

    750       847,088  

5.00%, 07/01/32

    375       421,755  

5.00%, 07/01/33

    1,190       1,333,300  
   

 

 

 
      4,777,618  
Florida — 6.2%  

Capital Region Community Development District, Refunding, Special Assessment Bonds, Series A-1:

   

4.13%, 05/01/23

    400       400,860  

4.63%, 05/01/28

    500       502,685  

County of Broward Florida School Board, COP, Refunding, Series A (AGM), 5.00%, 07/01/21 (a)

    10,000       10,728,900  

County of Lee Florida, Refunding ARB, Series A, AMT (AGM), 5.00%, 10/01/27

    1,635       1,732,495  

County of Lee Florida, Refunding RB, Series A, AMT, 5.50%, 10/01/23

    1,000       1,076,730  

County of Miami-Dade Florida, RB, AMT, Series B:

   

6.00%, 10/01/28

    3,470       3,978,390  

6.00%, 10/01/29

    3,480       3,985,540  

County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, Series A, 5.00%, 04/01/32

    5,020       5,659,899  

County of Miami-Dade Florida Transit System Sales Surtax Revenue, Refunding RB, 5.00%, 07/01/32

    1,500       1,634,670  

Florida Development Finance Corp., Refunding RB, Virgin Trains USA Passenger Rail Project, Series A, AMT (b)(c) :

   

6.38%, 01/01/49

    1,170       1,200,724  

6.50%, 01/01/49

    1,655       1,695,663  

Lakewood Ranch Stewardship District, Special Assessment Bonds:

   

Del Webb Project, 3.65%, 05/01/22 (b)

    405       406,851  

Del Webb Project, 4.30%, 05/01/27 (b)

    520       528,055  

Lakewood National and Polo Run Projects, 4.00%, 05/01/22

    945       953,618  

Midtown Miami Community Development District, Refunding, Special Assessment Bonds, Series A, 4.25%, 05/01/24

    1,105       1,142,338  

Sarasota County Health Facilities Authority, RB, Sunnyside Village Project, 5.00%, 05/15/33

    600       662,886  
 

 

 

S CHEDULES   OF  I NVESTMENTS      55  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

Sterling Hill Community Development District, Refunding, Special Assessment Bonds, Series B,
5.50%, 11/01/10 (d)(e)

  $ 143     $ 91,229  
   

 

 

 
      36,381,533  
Georgia — 4.4%  

City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/32

    8,315       9,644,236  

County of Cobb Kennestone Hospital Authority, Refunding RB, Revenue Anticipation Certificates, 5.00%, 04/01/32

    1,250       1,453,650  

Main Street Natural Gas, Inc., RB, Series A:

   

5.50%, 09/15/28

    2,500       3,124,975  

5.00%, 05/15/33

    5,000       5,852,350  

5.00%, 05/15/34

    5,250       6,122,760  
   

 

 

 
      26,197,971  
Hawaii — 0.9%  

State of Hawaii Airports System, Refunding ARB, Series A, 5.25%, 07/01/29

    5,000       5,190,350  
   

 

 

 
Illinois — 15.4%  

Chicago Board of Education, GO, Refunding, Series C, 5.00%, 12/01/26

    4,730       5,139,807  

Chicago Board of Education, GO, Refunding Dedicated Revenues, Series D, 5.00%, 12/01/26

    4,185       4,547,588  

City of Chicago Illinois Midway International Airport, Refunding ARB, 2nd Lien, Series A, AMT:

   

5.00%, 01/01/32

    5,000       5,497,950  

5.50%, 01/01/32

    1,500       1,658,310  

City of Chicago Illinois O’Hare International Airport, Refunding GARB, AMT, Series C:

   

5.25%, 01/01/28

    1,350       1,493,707  

5.25%, 01/01/29

    3,020       3,334,744  

City of Chicago Illinois O’Hare International Airport, RB, Refunding GARB, 5.00%, 01/01/32

    3,745       4,264,169  

City of Chicago Illinois O’Hare International Airport, Refunding GARB, Senior Lien, Series A, AMT, 5.00%, 01/01/23

    13,000       14,371,630  

City of Chicago Illinois Transit Authority, RB, 5.25%, 12/01/31

    3,700       3,924,775  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.13%, 12/01/38

    1,000       1,038,150  

Illinois Finance Authority, Refunding RB, CHF-Chicago, LLC-University Of Illinois at Chicago:

   

5.00%, 02/15/28

    810       932,529  

5.00%, 02/15/29

    400       456,712  

5.00%, 02/15/30

    500       568,540  

5.00%, 02/15/31

    500       565,805  

5.00%, 02/15/32

    500       563,090  

Madison-Macoupin Etc. Counties Community College District No. 536, GO, Refunding, Lewis & Clark Community College:

   

5.00%, 05/01/30

    475       488,110  

5.00%, 05/01/31

    500       513,770  

5.00%, 05/01/32

    500       513,415  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project, 5.00%, 12/15/28

    1,200       1,355,892  

Railsplitter Tobacco Settlement Authority, RB, 5.50%, 06/01/21 (a)

    3,500       3,773,700  

State of Illinois, GO:

   

5.25%, 02/01/30

    5,000       5,342,450  

5.00%, 04/01/31

    1,000       1,054,860  

5.00%, 05/01/31

    10,010       10,564,654  

State of Illinois, GO, Refunding, Series B, 5.00%, 10/01/27

    470       519,228  
Security   Par
(000)
    Value  
Illinois (continued)  

State of Illinois, GO, Series D, 5.00%, 11/01/28

  $ 1,645     $ 1,817,149  

State of Illinois Finance Authority, Refunding RB, Southern Illinois Healthcare Enterprises, Inc.:

   

5.00%, 03/01/30

    550       638,666  

5.00%, 03/01/32

    920       1,055,461  

State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 01/01/34

    9,140       10,016,709  

State of Illinois Toll Highway Authority, Refunding RB, Senior Series A, 5.00%, 12/01/31

    4,220       4,882,667  
   

 

 

 
      90,894,237  
Indiana — 3.5%  

City of Whiting Indiana, RB, BP Products North America, Inc. Project, 5.25%, 01/01/21

    4,800       5,058,768  

Indiana Finance Authority, RB, Wastewater, 1st Lien, Series A, 5.25%, 10/01/31

    10,000       10,775,000  

Indiana Finance Authority, Refunding RB, US Steel Corp. Project, 6.00%, 12/01/19

    5,000       5,082,350  
   

 

 

 
      20,916,118  
Iowa — 1.1%  

Iowa Higher Education Loan Authority, RB, Private College Facility:

   

5.25%, 04/01/23

    695       738,389  

5.25%, 04/01/24

    730       775,428  

5.25%, 04/01/25

    520       552,464  

5.25%, 04/01/26

    360       382,475  

Iowa Higher Education Loan Authority, Refunding RB, Private College Facility:

   

5.00%, 09/01/20 (a)

    2,315       2,416,281  

Upper Iowa University Project, 5.00%, 09/01/20 (f)

    800       821,832  

Iowa Student Loan Liquidity Corp., Refunding RB, AMT, Series A, 5.00%, 12/01/26

    775       901,061  
   

 

 

 
      6,587,930  
Kansas — 1.4%  

County of Seward Unified School District No. 480 Liberal, GO, Refunding:

   

5.00%, 09/01/22 (a)

    3,990       4,422,715  

5.00%, 09/01/22 (a)

    1,005       1,113,299  

5.00%, 09/01/33

    1,005       1,113,299  

Kansas Development Finance Authority, Refunding RB, Health Hospital Nursing Home Improvements:

   

5.00%, 11/15/19 (a)

    35       35,600  

5.00%, 11/15/23

    1,465       1,487,517  
   

 

 

 
      8,172,430  
Kentucky — 0.5%  

Countyof Louisville/Jefferson Metropolitan Government, Refunding RB, Catholic Health Initiatives:

   

5.00%, 12/01/35

    120       127,824  

Series A, 5.00%, 12/01/31

    2,750       2,954,875  
   

 

 

 
      3,082,699  
Louisiana — 3.1%  

City of Bossier City Louisiana Utilities, Refunding RB, 5.00%, 10/01/32

    2,000       2,310,540  

Louisiana Local Government Environmental Facilities & Community Development Authority, Refunding RB, BRCC Facilities Corp. Project:

   

5.00%, 12/01/27

    3,445       3,704,650  

5.00%, 12/01/28

    3,715       3,995,000  

New Orleans Aviation Board, RB, Series A, 5.00%, 01/01/33

    1,000       1,131,270  

State of Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, 4.00%, 05/01/34

    3,000       3,142,290  
 

 

 

56    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Louisiana (continued)  

Terrebonne Levee & Conservation District, RB, Sales Tax, 5.00%, 07/01/28

  $ 3,660     $ 4,089,647  
   

 

 

 
      18,373,397  
Maryland — 1.7%  

City of Rockville Maryland, RB, Ingleside King Farm Project, 3.50%, 11/01/26

    1,825       1,831,041  

Maryland Economic Development Corp., RB, Transportation Facilities Project, Series A, 5.13%, 06/01/20 (f)

    1,020       1,050,447  

Maryland Economic Development Corp., Refunding RB, Transportation Facilities Project, Series A:

   

5.00%, 06/01/29

    1,835       2,187,265  

5.00%, 06/01/30

    1,015       1,201,486  

5.00%, 06/01/31

    1,000       1,172,040  

5.00%, 06/01/32

    1,000       1,162,470  

Maryland Health & Higher Educational Facilities Authority, RB, Johns Hopkins Health System, Series B, 5.00%, 07/01/33

    1,140       1,249,702  
   

 

 

 
      9,854,451  
Massachusetts — 1.7%  

Massachusetts Development Finance Agency, Refunding RB:

   

Emerson College Issue, Series A, 5.00%, 01/01/31

    1,730       1,931,424  

Suffolk University, 5.00%, 07/01/29

    2,700       3,163,131  

Suffolk University, 5.00%, 07/01/30

    3,125       3,638,031  

Massachusetts Health & Educational Facilities Authority, Refunding RB, Winchester Hospital, 5.00%, 07/01/25

    1,060       1,096,825  
   

 

 

 
      9,829,411  
Michigan — 3.5%  

City of Detroit Michigan, GO:

   

5.00%, 04/01/26

    265       291,097  

5.00%, 04/01/27

    210       231,741  

5.00%, 04/01/28

    235       259,973  

5.00%, 04/01/29

    235       259,198  

5.00%, 04/01/30

    180       197,921  

5.00%, 04/01/31

    265       288,932  

5.00%, 04/01/32

    225       244,015  

5.00%, 04/01/33

    295       319,388  

Manistee Area Public Schools, GO, Refunding, (Q-SBLF), 5.00%, 05/01/25

    1,000       1,063,850  

Michigan Finance Authority, Refunding RB, Senior Lien, Detroit Water and Sewer, Series C-3 (AGM), 5.00%, 07/01/31

    4,000       4,516,360  

Michigan State Building Authority, Refunding RB, Facilities Program, Series II-A, 5.00%, 10/15/24

    2,500       2,691,250  

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.25%, 11/15/19 (a)

    4,900       4,994,521  

Michigan Strategic Fund, RB, I -75 Improvement Projects, AMT:

   

5.00%, 06/30/33

    2,415       2,836,538  

5.00%, 12/31/33

    2,000       2,344,940  
   

 

 

 
      20,539,724  
Minnesota — 2.0%  

City of Minneapolis, RB, YMCA of the Greater Twin Cities Project:

   

4.00%, 06/01/30

    150       163,861  

4.00%, 06/01/31

    50       54,273  

City of Minneapolis, Refunding RB, Fairview Health Services, Series A, 5.00%, 11/15/33

    2,370       2,836,369  

County of St. Paul Minnesota Housing & Redevelopment Authority, RB, Great River School Project, Series A, 4.75%, 07/01/29 (b)

    250       258,882  
Security   Par
(000)
    Value  
Minnesota (continued)  

Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A:

   

5.00%, 02/15/33

  $ 1,000     $ 1,162,000  

5.00%, 02/15/34

    1,185       1,373,510  

University of Minnesota, RB, Biomedical Science Research Facilities Funding Program:

   

Series B, 5.00%, 08/01/36

    1,000       1,064,990  

Series C, 5.00%, 08/01/27

    1,390       1,567,447  

Series C, 5.00%, 08/01/28

    740       833,181  

Series C, 5.00%, 08/01/29

    1,555       1,748,100  

Series C, 5.00%, 08/01/30

    835       937,605  
   

 

 

 
      12,000,218  
Missouri — 0.3%  

City of St. Louis Missouri IDA, Refunding RB, Ballpark Village Development Project, Series A, 3.88%, 11/15/29

    350       363,801  

St. Louis County Industrial Development Authority, Refunding RB, Friendship Village St. Louis Obligated Group:

   

5.00%, 09/01/27

    360       404,521  

5.00%, 09/01/32

    1,015       1,107,284  
   

 

 

 
      1,875,606  
Montana — 0.1%  

County of Yellowstone Montana School District No. 2 Billings, GO, 5.00%, 06/15/30

    500       567,995  
   

 

 

 
Nebraska — 0.9%  

County of Douglas Nebraska Hospital Authority No. 3, Refunding RB, 5.00%, 11/01/30

    800       912,280  

County of Lancaster Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, 5.50%, 01/01/30

    1,000       1,022,540  

Nebraska Public Power District, Refunding RB, Series A:

   

5.00%, 01/01/30

    1,000       1,078,610  

5.00%, 01/01/32

    2,000       2,153,400  
   

 

 

 
      5,166,830  
Nevada — 1.9%  

City of Reno Nevada, Refunding RB, Series A-1 (AGM):

   

5.00%, 06/01/30

    500       586,375  

5.00%, 06/01/31

    1,000       1,163,810  

County of Clark Nevada Department of Aviation, Refunding RB, 5.00%, 07/01/33

    5,000       5,636,500  

County of Humboldt Nevada, Refunding RB, Idaho Power Co. Project, 5.15%, 12/01/24

    3,800       3,838,342  
   

 

 

 
      11,225,027  
New Hampshire — 0.1%  

New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project, Series A, AMT, 4.00%, 11/01/27 (b)

    795       808,706  
   

 

 

 
New Jersey — 24.6%  

County of Essex New Jersey Improvement Authority, LRB, Newark Project, Series A (AGM), 5.00%, 11/01/20 (f)

    1,364       1,406,148  

New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23

    6,040       6,505,020  

New Jersey EDA, RB, Goethals Bridge Replacement Project, Private Activity Bond AMT:

   

5.50%, 01/01/26

    1,500       1,716,960  

5.50%, 01/01/27

    1,000       1,141,730  

New Jersey EDA, Refunding ARB, Port Newark Container Terminal LLC Project, AMT:

   

5.00%, 10/01/26

    2,135       2,438,362  

5.00%, 10/01/27

    1,680       1,931,042  
 

 

 

S CHEDULES   OF  I NVESTMENTS      57  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Jersey (continued)  

New Jersey EDA, Refunding RB:

   

New Jersey American Water Co., Series E, AMT, 4.70%, 12/01/25

  $ 3,000     $ 3,106,890  

School Facilities Construction, Series AA, 4.25%, 12/15/24

    3,850       3,858,624  

School Facilities Construction, Series EE, 5.00%, 09/01/23

    3,465       3,623,905  

New Jersey Educational Facilities Authority, RB, Higher Education Facilities Trust Fund, 5.00%, 06/15/28

    10,000       10,912,300  

New Jersey Educational Facilities Authority, Refunding RB, 5.00%, 07/01/30

    5,000       5,723,900  

New Jersey Higher Education Student Assistance Authority, Refunding RB:

   

AMT, Series B, 5.00%, 12/01/27

    1,000       1,189,620  

AMT, Series B, 5.00%, 12/01/28

    1,000       1,191,310  

Series 1, AMT, 5.50%, 12/01/26

    750       797,363  

Student Loan, Series 1A, 4.75%, 12/01/21

    1,060       1,078,221  

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/32

    12,000       13,768,200  

New Jersey State Turnpike Authority, Refunding RB, Series B, 5.00%, 01/01/29

    6,000       6,644,220  

New Jersey Transportation Trust Fund Authority, RB:

   

Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/30

    2,000       2,279,700  

Series B, 5.25%, 06/15/26

    3,500       3,704,785  

Transportation Program, Series AA, 5.25%, 06/15/31

    12,000       12,990,480  

Transportation Program, Series AA, 5.25%, 06/15/32

    2,250       2,490,052  

Transportation System, Series A, 5.25%, 06/15/24

    3,185       3,382,629  

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

    11,780       12,452,285  

Transportation System, Series C, 5.25%, 06/15/32

    10,000       11,030,600  

New Jersey Transportation Trust Fund Authority, Refunding RB, Series A:

   

Federal Highway Reimbursement Revenue Notes, 5.00%, 06/15/30

    1,695       1,932,046  

Transportation System, 5.00%, 12/15/33

    2,285       2,589,819  

Newark Housing Authority, RB, Series A:

   

5.00%, 12/01/23

    1,230       1,381,831  

5.00%, 12/01/25

    1,345       1,523,334  

South Jersey Port Corp., ARB, Sobordinated Marine Terminal, Series B, AMT:

   

5.00%, 01/01/29

    250       289,215  

5.00%, 01/01/30

    200       229,884  

5.00%, 01/01/31

    350       399,476  

5.00%, 01/01/32

    425       482,923  

State of New Jersey, GO, Various Purposes, 5.00%, 06/01/28

    5,000       5,781,250  

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

   

5.00%, 06/01/30

    850       1,000,050  

5.00%, 06/01/32

    11,980       13,941,246  

Tobacco Settlement Bonds, 5.00%, 06/01/33

    220       255,141  
   

 

 

 
      145,170,561  
New Mexico — 1.2%  

Albuquerque Municipal School District No. 12, GO, Series 2017, 5.00%, 08/01/30

    1,250       1,491,687  

County of Albuquerque Bernalillo New Mexico Water Utility Authority, Refunding RB, 4.00%, 07/01/33

    2,510       2,712,733  

New Mexico Hospital Equipment Loan Council, Refunding RB, 5.00%, 08/01/31

    2,500       2,884,800  
   

 

 

 
      7,089,220  
Security   Par
(000)
    Value  
New York — 9.3%  

Build NYC Resource Corp., RB, Inwood Academy for Leadership Charter School Project, Series A, 4.88%, 05/01/31 (b)

  $ 450     $ 464,391  

Build NYC Resource Corp., Refunding RB, Manhattan College Project, 5.00%, 08/01/35

    665       774,625  

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       827,888  

4.50%, 06/01/27

    1,710       1,860,480  

5.00%, 06/01/35

    415       450,628  

County of Monroe New York Industrial Development Corp., Refunding RB, Series A, 5.00%, 07/01/23 (a)

    5,695       6,486,662  

County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien, Remarketing, Series A:

   

5.00%, 11/01/24

    5,470       5,846,391  

5.00%, 11/01/30

    655       692,767  

Metropolitan Transportation Authority, RB (a) :

   

Sub-Series B-1, 5.00%, 11/15/21

    2,300       2,500,767  

Sub-Series B-4, 5.00%, 11/15/21

    1,500       1,630,935  

New York City Trust for Cultural Resources, Refunding RB, Carnegie Hall, Series A, 5.00%, 12/01/29

    2,750       2,801,370  

New York State Dormitory Authority, RB, North Shore-Long Island Jewish Health System, Series A, 5.50%, 05/01/19 (a)

    1,495       1,495,000  

New York State Dormitory Authority, Refunding RB:

   

4.25%, 09/01/19 (a)

    480       484,214  

5.00%, 07/01/30

    1,555       1,816,224  

Niagara Area Development Corp., Refunding RB, Covanta Project, Series B, 3.50%, 11/01/24 (b)

    1,000       1,022,160  

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, Series 8, 5.00%, 12/01/20

    1,690       1,749,370  

State of New York Dormitory Authority, RB, Series A:

   

Fordham University, 5.25%, 07/01/21 (a)

    900       971,973  

Icahn School of Medicine at Mount Sinai, 5.00%, 07/01/32

    9,000       10,332,540  

New York University Hospitals Center, 5.00%, 07/01/20 (a)

    1,725       1,793,551  

New York University Hospitals Center, 5.13%, 07/01/20 (a)

    1,670       1,738,771  

State of New York Dormitory Authority, Refunding RB:

   

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/32

    3,060       3,482,066  

Orange Regional Medical Center, 5.00%, 12/01/27 (b)

    900       1,059,534  

Orange Regional Medical Center, 5.00%, 12/01/28 (b)

    1,800       2,108,862  

Series E, 5.25%, 03/15/33

    2,000       2,374,880  
   

 

 

 
      54,766,049  
North Carolina — 0.3%  

North Carolina Medical Care Commission, Refunding RB, WakeMed, Series A, 5.00%, 10/01/31

    1,500       1,636,035  
   

 

 

 
Ohio — 1.1%  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 02/15/31

    6,000       6,702,840  
   

 

 

 
Oklahoma — 1.3%  

Oklahoma City Public Property Authority, Refunding RB:

   

5.00%, 10/01/27

    1,190       1,398,964  

5.00%, 10/01/28

    1,265       1,483,820  

5.00%, 10/01/29

    1,400       1,637,594  

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

   

5.00%, 08/15/29

    1,200       1,411,212  
 

 

 

58    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Oklahoma (continued)  

5.00%, 08/15/33

  $ 1,305     $ 1,493,520  
   

 

 

 
      7,425,110  
Oregon — 1.5%  

County of Klamath Oregon School District, GO:

   

5.00%, 06/15/30

    1,000       1,119,910  

5.00%, 06/15/31

    1,000       1,118,650  

County of Umatilla Oregon School District No. 16R Pendleton, GO, Series A, 5.00%, 06/15/32

    2,000       2,284,360  

Oregon State Facilities Authority, Refunding RB, Reed College Project, Series A, 5.00%, 07/01/20 (a)

    1,835       1,907,482  

State of Oregon, GO, Series H, 5.00%, 05/01/36

    2,000       2,167,520  
   

 

 

 
      8,597,922  
Pennsylvania — 7.1%  

Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project (b) :

   

5.00%, 05/01/22

    1,545       1,633,389  

5.00%, 05/01/23

    640       687,379  

5.00%, 05/01/28

    835       946,807  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

   

5.00%, 06/01/33

    2,000       2,355,820  

5.00%, 06/01/34

    3,750       4,402,462  

County of Allegheny Pennsylvania, GO, Refunding, Series C-68, 5.00%, 11/01/25

    2,515       2,706,970  

County of Allegheny Pennsylvania, GO, Series C-67:

   

5.00%, 11/01/25

    2,700       2,906,091  

5.00%, 11/01/26

    2,375       2,551,463  

Pennsylvania Economic Development Financing Authority, RB, PA Bridges Finco LP, AMT, 5.00%, 12/31/28

    115       131,745  

Pennsylvania Turnpike Commission, RB, Sub-Series B, 5.25%, 12/01/21 (a)

    4,000       4,370,800  

Pennsylvania Turnpike Commission, Refunding RB:

   

Second Series, 5.00%, 12/01/30

    2,620       3,074,963  

Sub-Series B, 5.00%, 06/01/32

    5,000       5,787,600  

School District of Philadelphia, GOL, Series A:

   

5.00%, 09/01/30

    1,200       1,421,292  

5.00%, 09/01/31

    1,000       1,175,930  

5.00%, 09/01/32

    1,200       1,402,740  

South Fork Municipal Authority, Refunding RB, Conemaugh Valley Memorial Hospital, Series A (AGC), 6.00%, 07/01/20 (a)

    6,225       6,527,597  
   

 

 

 
      42,083,048  
Puerto Rico — 1.1%  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:

   

CAB, 0.00%, 07/01/27 (g)

    4,974       3,729,008  

4.50%, 07/01/34

    2,943       2,985,556  
   

 

 

 
      6,714,564  
Rhode Island — 1.7%  

Providence Redevelopment Agency, Refunding RB, Series A, 5.00%, 04/01/29

    1,000       1,112,390  

Rhode Island Health & Educational Building Corp., RB, City of Newport Issue Financing Program, Series C, 5.00%, 05/15/30

    2,305       2,508,969  

Rhode Island Health & Educational Building Corp., Refunding RB, 5.00%, 09/01/32

    2,000       2,241,320  

Rhode Island Student Loan Authority, RB, AMT, Senior Program, Series A:

   

5.00%, 12/01/27

    1,000       1,189,620  

5.00%, 12/01/28

    1,000       1,198,710  
Security   Par
(000)
    Value  
Rhode Island (continued)  

Rhode Island Student Loan Authority, Refunding RB, Senior Series A, AMT:

   

5.00%, 12/01/24

  $ 750     $ 856,860  

5.00%, 12/01/25

    850       986,672  
   

 

 

 
      10,094,541  
South Carolina — 2.5%  

South Carolina Jobs-Economic Development Authority, Refunding RB, The Woodlands at Furman, 4.00%, 11/15/27

    905       914,421  

South Carolina Public Service Authority, Refunding RB, Series A:

   

5.00%, 12/01/30

    5,500       6,368,835  

5.00%, 12/01/31

    5,660       6,528,244  

5.00%, 12/01/32

    200       230,036  

5.00%, 12/01/33

    800       917,128  
   

 

 

 
      14,958,664  
South Dakota — 0.2%  

South Dakota Health & Educational Facilities Authority, Refunding RB, Regional Health, 5.00%, 09/01/20 (a)

    1,000       1,043,750  
   

 

 

 
Tennessee — 1.9%  

County of Memphis-Shelby Industrial Development Board, Refunding, Tax Allocation Bonds, Graceland Project, Series A, 4.75%, 07/01/27

    220       233,114  

County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project:

   

Series A, 5.00%, 11/01/23

    2,695       2,738,713  

Series B, 5.00%, 11/01/22

    1,000       1,016,220  

Knox County Health Educational & Housing Facility Board Tennessee, Refunding RB, Eastowne Village Project, 4.00%, 06/01/31 (c)

    2,885       2,919,447  

Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/35

    4,000       4,545,840  
   

 

 

 
      11,453,334  
Texas — 10.6%  

City of Grapevine Texas, GO, 5.00%, 02/15/33

    5,685       6,290,623  

City of Houston Texas, Refunding ARB, Subordinate Lien, Series A, AMT:

   

5.00%, 07/01/25

    1,500       1,596,285  

5.00%, 07/01/32

    1,010       1,091,325  

City of Houston Texas Airport System Revenue, Refunding ARB, Sub-Series A, AMT:

   

5.00%, 07/01/31

    1,430       1,714,456  

5.00%, 07/01/32

    1,515       1,808,258  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/33

    8,485       10,115,817  

Dallas-Fort Worth International Airport, ARB, Joint Improvement, Series D, AMT, 5.00%, 11/01/38

    8,290       8,789,224  

Dallas/Fort Worth Texas International Airport, Refunding RB, AMT:

   

Series E, 5.00%, 11/01/26

    2,185       2,283,478  

Series E, 5.00%, 11/01/27

    4,960       5,181,266  

Series F, 5.00%, 11/01/31

    6,345       6,606,985  

Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, AMT, 5.00%, 11/01/28

    1,000       1,088,060  

Mission EDC, Refunding RB, Senior Lien, NatGasoline Project, AMT, 4.63%, 10/01/31 (b)

    1,475       1,537,437  

New Hope Cultural Education Facilities Finance Corp., RB, Jubilee Academic Center Project, Series A (b) :

   

3.63%, 08/15/22

    105       105,488  

4.25%, 08/15/27

    160       162,080  
 

 

 

S CHEDULES   OF  I NVESTMENTS      59  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

Red River Education Financing Corp., RB, 5.00%, 03/15/33

  $ 1,340     $ 1,474,710  

San Jacinto River Authority, RB, Special Project (AGM), 5.25%, 10/01/25

    2,910       2,952,719  

Socorro Independent School District, GO, Refunding(PSF-GTD):

   

5.00%, 08/15/20 (a)

    2,410       2,513,534  

5.00%, 08/15/32

    90       93,635  

Via Metropolitan Transit Authority, Refunding RB:

   

5.25%, 08/01/28

    1,585       1,788,799  

5.25%, 08/01/29

    1,720       1,939,214  

5.25%, 08/01/33

    3,000       3,382,260  
   

 

 

 
      62,515,653  
U.S. Virgin Islands — 0.9%  

Virgin Islands Public Finance Authority, Refunding RB, Series A (AGM), 5.25%, 10/01/24

    5,000       5,419,950  
   

 

 

 
Utah — 1.0%  

Salt Lake City Corp. Airport Revenue, ARB, AMT, Series A, 5.00%, 07/01/33

    3,500       4,157,650  

Utah Charter School Finance Authority, Refunding RB, Freedom Academy Foundation Project,
4.50%, 06/15/27 (b)

    1,500       1,526,490  
   

 

 

 
      5,684,140  
Vermont — 1.0%  

University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/30

    5,565       5,993,060  
   

 

 

 
Washington — 0.5%  

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

   

Horizone House Project, 5.00%, 01/01/27

    1,560       1,785,451  

Horizon House Project, 5.00%, 01/01/28

    750       857,558  
   

 

 

 
      2,643,009  
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       4,035,760  

West Virginia University, RB, West Virginia University Project, Series B, 5.00%, 10/01/30

    1,500       1,601,220  
   

 

 

 
      5,636,980  
Wisconsin — 1.4%  

Public Finance Authority, RB, Piedmont Community Charter School, 5.00%, 06/15/34

    430       488,871  

Public Finance Authority, Refunding RB, AMT:

   

National Gypsum Co., 5.25%, 04/01/30

    2,410       2,624,273  

Wisconsin Airport Facilities, Senior Obligated Group, Series B, 5.25%, 07/01/28

    4,765       5,160,448  
   

 

 

 
      8,273,592  

Total Municipal Bonds — 135.0%
(Cost — $756,131,525)

 

    796,521,635  
   

 

 

 

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 (b)(i)

    8,080       9,161,407  

State of California, GO, Refunding Water Utility Authority, 5.00%, 10/01/35

    12,500       14,658,384  
   

 

 

 
      23,819,791  
Security   Par
(000)
    Value  
Iowa — 1.3%  

Iowa Finance Authority, Refunding RB, UnityPoint Health, Series C, 4.13%, 02/15/35 (b)

  $ 7,500     $ 7,807,575  
   

 

 

 
Massachusetts — 3.4%  

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System:

   

5.00%, 07/01/32

    7,500       8,970,225  

Series L, 5.00%, 07/01/31

    10,175       10,846,657  
   

 

 

 
      19,816,882  
Minnesota — 1.8%  

State of Minnesota, GO, State Various Purposes, Series A, 4.00%, 08/01/20 (a)

    10,525       10,827,525  
   

 

 

 
New Jersey — 1.6%  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F, AMT, Series BB (b) :

   

3.65%, 04/01/28

    4,890       5,120,953  

3.70%, 10/01/28

    3,790       3,968,421  
   

 

 

 
      9,089,374  
New York — 10.3%  

City of New York, GO:

   

Sub-Series 1-I, 5.00%, 03/01/32

    7,009       7,925,425  

Refunding Series E, 5.00%, 08/01/19 (a)

    1,017       1,026,026  

Refunding Series E, 5.00%, 08/01/27

    2,489       2,510,288  

City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Future Tax Secured Subordinate Bonds, SubSeries B-1, 5.00%, 08/01/36

    9,444       11,035,190  

Metropolitan Transportation Authority, RB, Sub-Series D-1, 5.00%, 11/15/39

    4,980       5,567,673  

Metropolitan Transportation Authority, Refunding RB, Series B, 5.25%, 11/15/19 (a)

    4,001       4,081,142  

Port Authority of New York & New Jersey, Refunding ARB:

   

178th Series, AMT, 5.00%, 12/01/32

    4,009       4,464,164  

Consolidated, Series 169th, 5.00%, 10/15/26

    5,530       5,932,335  

Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 5.00%, 10/15/31

    5,010       5,806,874  

State of New York Dormitory Authority, Refunding RB, Series A, 5.00%, 03/15/36 (i)

    5,505       6,455,824  

State of New York Urban Development Corp., RB, Personal Income Tax, Series A-1, 5.00%, 03/15/32

    5,501       6,119,666  
   

 

 

 
      60,924,607  
Texas — 1.5%  

Pflugerville Independent School District, GO, (PSF-GTD), 5.00%, 02/15/24 (a)

    7,500       8,627,250  
   

 

 

 
Washington — 3.0%  

Port of Seattle Washington, ARB, AMT, Series A, 5.00%, 05/01/34

    15,000       17,437,950  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 26.9%
(Cost — $151,914,232)

 

    158,350,954  
   

 

 

 

Total Long-Term Investments — 161.9%
(Cost — $908,045,757)

 

    954,872,589  
   

 

 

 
 

 

 

60    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Short-Term Securities — 0.6%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.94% (j)(k)

    3,435,688     $ 3,436,032  
   

 

 

 

Total Short-Term Securities — 0.6%
(Cost — $3,436,375)

 

    3,436,032  
   

 

 

 

Total Investments — 162.5%
(Cost — $911,482,132)

 

    958,308,621  
   

 

 

 

Other Assets Less Liabilities — 2.1%

 

    12,471,968  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (15.9)%

 

    (93,793,906

VMTP Shares, at Liquidation Value — (48.7)%

 

    (287,100,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 589,886,683  
   

 

 

 

 

(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)  

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.

(d)  

Issuer filed for bankruptcy and/or is in default.

(e)  

Non-income producing security.

(f)  

Security is collateralized by municipal bonds or U.S. Treasury obligations.

(g)  

Zero-coupon bond.

(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 the 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 September 15, 2024 to April 01, 2025, is 10,037,537. See Note 4 of the Notes to Financial Statements for details.

(j)  

Annualized 7-day yield as of period end.

 
(k)  

During the year ended April 30, 2019, investments in issuers considered to be an affiliate/affiliates 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
04/30/19
     Value at
04/30/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

            3,435,688        3,435,688      $ 3,436,032      $ 43,478      $ (1,081    $ (343
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     253          06/19/19        $ 31,289        $ (142,235

Long U.S. Treasury Bond

     94          06/19/19          13,862          (66,609

5-Year U.S. Treasury Note

     70          06/28/19          8,095          (38,237
                 

 

 

 
                  $ (247,081
                 

 

 

 

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  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts (a)

   $      $      $      $      $ 247,081      $      $ 247,081  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

 

 

S CHEDULES   OF  I NVESTMENTS      61  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

For the year ended April 30, 2019, 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

   $      $      $      $      $ (960,803    $      $ (960,803
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (435,561    $      $ (435,561
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 44,382,059  

For more information about the Trust’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)

   $        $ 954,872,589        $        $ 954,872,589  

Short-Term Securities

     3,436,032                            3,436,032  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,436,032        $ 954,872,589        $        $ 958,308,621  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments (b)

 

Liabilities:

 

Interest rate contracts

   $ (247,081      $        $        $ (247,081
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  

See above Schedule of Investments for values in each sector 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

   $        $ (93,420,751      $        $ (93,420,751

VMTP Shares at Liquidation Value

              (287,100,000                 (287,100,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (380,520,751      $        $ (380,520,751
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

62    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments

April 30, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 127.8%

 

Alabama — 1.6%  

County of Jefferson Alabama Sewer, Refunding RB:

   

Senior Lien, Series A (AGM), 5.00%, 10/01/44

  $ 805     $ 886,635  

Sub-Lien, Series D, 6.00%, 10/01/42

    3,575       4,161,801  
   

 

 

 
    5,048,436  
Alaska — 0.1%  

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 4.63%, 06/01/23

    185       185,050  
   

 

 

 
Arizona — 0.6%  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46 (a)

    1,685       1,758,028  
   

 

 

 
California — 9.6%  

California Educational Facilities Authority, RB, Stanford University, Series V-1, 5.00%, 05/01/49

    2,095       2,933,314  

California Health Facilities Financing Authority, RB:

   

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

    2,200       2,214,476  

Sutter Health, Series B, 6.00%, 08/15/20 (b)

    3,170       3,351,799  

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33

    890       996,640  

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

    1,475       1,532,761  

California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:

   

5.25%, 08/15/39

    145       162,035  

5.25%, 08/15/49

    370       408,302  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 02/01/42

    225       253,028  

California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (a)

    1,495       1,575,760  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A (a) :

   

5.00%, 12/01/41

    290       316,500  

5.00%, 12/01/46

    455       494,467  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:

   

Senior, 5.00%, 05/15/40

    5,930       6,133,162  

5.25%, 05/15/39

    800       801,096  

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

    360       424,389  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.00%, 06/01/47

    2,745       2,686,504  

San Marcos Unified School District, GO, CAB, Election of 2010, Series B, 0.00%, 08/01/42 (c)

    2,000       945,200  

State of California, GO, Various Purposes, 6.00%, 03/01/33

    2,525       2,618,602  

State of California Public Works Board, LRB, Various Capital Projects:

   

Series I, 5.00%, 11/01/38

    775       859,444  

Sub-Series I-1, 6.38%, 11/01/19 (b)

    1,185       1,214,175  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 06/01/25

    425       427,478  
   

 

 

 
    30,349,132  
Colorado — 1.0%  

Arapahoe County School District No. 6 Littleton, GO, Series A, 5.50%, 12/01/43

    1,705       2,124,839  
Security   Par
(000)
    Value  
Colorado (continued)  

Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33

  $ 1,060     $ 1,067,876  
   

 

 

 
    3,192,715  
Connecticut — 0.4%  

State of Connecticut Health & Educational Facility Authority, RB, Ascension Health Senior Credit, Series A, 5.00%, 11/15/40

    1,375       1,396,574  
   

 

 

 
Delaware — 2.1%  

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

    1,125       1,186,009  

Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 06/01/55

    1,165       1,300,478  

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

    4,065       4,213,616  
   

 

 

 
    6,700,103  
District of Columbia — 5.7%  

District of Columbia, Refunding RB:

   

Georgetown University, 5.00%, 04/01/35

    435       510,003  

Georgetown University Issue, 5.00%, 04/01/42

    355       409,642  

Kipp Charter School, Series A, 6.00%, 07/01/23 (b)

    240       281,520  

The Catholic University of America Issue, 5.00%, 10/01/48

    2,315       2,645,975  

Metropolitan Washington Airports Authority, Refunding ARB:

   

Dulles Metrorail And Capital Improvement Projects, Series A, 5.00%, 10/01/53

    2,010       2,131,223  

Dulles Toll Road, CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/35 (c)

    6,515       3,674,981  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road:

   

1st Senior Lien, Series A, 5.25%, 10/01/44

    1,500       1,517,145  

CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/33 (c)

    6,590       4,033,344  

CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/34 (c)

    4,830       2,834,485  
   

 

 

 
    18,038,318  
Florida — 5.7%  

Celebration Pointe Community Development District, Special Assessment Bonds, County of Alachua Florida (a) :

   

5.00%, 05/01/32

    470       497,462  

5.00%, 05/01/48

    1,175       1,203,776  

County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45

    1,340       1,453,619  

County of Collier Health Facilities Authority, RB, Moorings, Inc., Series A, 5.00%, 05/01/48

    1,190       1,334,466  

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A-1, 5.38%, 10/01/20 (b)

    1,165       1,226,058  

County of Palm Beach Health Facilities Authority, RB, Acts Retirement-Life Communities, Inc., 5.00%, 11/15/45

    4,500       5,030,325  

Florida Development Finance Corp., Refunding RB, Virgin Trains USA Passenger Rail Project, Series A, AMT (a)(d) :

   

6.38%, 01/01/49

    610       626,019  

6.50%, 01/01/49

    860       881,130  

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

    3,015       3,404,447  

Village Community Development District No.10, Special Assessment Bonds, 5.13%, 05/01/43

    2,190       2,364,236  
   

 

 

 
    18,021,538  
Georgia — 4.4%  

Country of Fulton Development Authority, Refunding RB, Robert W. Woodruff Arts Center, Inc. Project, 4.00%, 03/15/44

    5,000       5,168,450  
 

 

 

S CHEDULES   OF  I NVESTMENTS      63  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Georgia (continued)  

County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48

  $ 1,825     $ 1,933,861  

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

    515       594,042  

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

    130       132,198  

Glynn-Brunswick Memorial Hospital Authority, RB, Southeast Georgia Health System Project, 5.00%, 08/01/47

    2,500       2,785,375  

Main Street Natural Gas, Inc., RB, Series A:

   

5.00%, 05/15/35

    490       592,915  

5.00%, 05/15/36

    490       593,841  

5.00%, 05/15/37

    540       655,306  

5.00%, 05/15/38

    295       358,782  

5.00%, 05/15/49

    985       1,232,314  
   

 

 

 
    14,047,084  
Hawaii — 0.4%  

State of Hawaii Harbor System, RB, Series A, 5.25%, 07/01/30

    1,355       1,408,509  
   

 

 

 
Idaho — 0.3%  

Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series A, 5.00%, 12/01/46

    745       855,193  
   

 

 

 
Illinois — 14.8%  

Chicago Board of Education, GO:

   

Dedicated Revenues, Series H, 5.00%, 12/01/36

    450       480,506  

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

    1,465       1,554,233  

Chicago Board of Education, GO, Refunding:

   

Dedicated Revenues, Series C, 5.00%, 12/01/25

    815       880,306  

Dedicated Revenues, Series F, 5.00%, 12/01/24

    615       661,986  

Dedicated Revenues, Series G, 5.00%, 12/01/34

    450       483,615  

Series C, 5.00%, 12/01/25

    645       696,684  

Chicago Board of Education, GO, Series D:

   

5.00%, 12/01/46

    535       560,707  

5.00%, 12/01/46

    1,380       1,419,730  

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

    778       782,357  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series C, 6.50%, 01/01/21 (b)

    5,865       6,337,895  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

    1,050       1,105,293  

City of Chicago Illinois Waterworks, Refunding RB:

   

2nd Lien (AGM), 5.25%, 11/01/33

    260       260,663  

2nd Lien Project, 5.00%, 11/01/42

    915       972,124  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38

    805       848,164  

Illinois Finance Authority, RB, Chicago LLC, University of Illinois at Chicago Project, Series A:

   

5.00%, 02/15/47

    200       218,398  

5.00%, 02/15/50

    100       108,827  

Illinois Finance Authority, Refunding RB, Central Dupage Health, Series B, 5.50%, 11/01/19 (b)

    1,610       1,640,815  

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

   

Series B (AGM), 5.00%, 06/15/50

    4,315       4,421,408  

Series B-2, 5.00%, 06/15/50

    2,500       2,528,225  

Railsplitter Tobacco Settlement Authority, RB (b) :

   

5.50%, 06/01/21

    440       474,408  

6.00%, 06/01/21

    1,140       1,240,753  

Regional Transportation Authority, RB:

   

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

    350       368,662  

Series A (NPFGC), 6.70%, 11/01/21

    2,570       2,752,958  

Series C (NPFGC), 7.75%, 06/01/20

    505       522,619  
Security   Par
(000)
    Value  
Illinois (continued)  

State of Illinois, GO:

   

5.00%, 02/01/39

  $ 1,540     $ 1,598,705  

Series A, 5.00%, 04/01/35

    3,000       3,118,920  

Series A, 5.00%, 04/01/38

    3,490       3,611,627  

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

    630       632,709  

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

    2,800       3,155,208  

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44

    985       1,077,235  

Village of Hodgkins Illinois, RB, Metropolitan Biosolids Management LLC Project, AMT, 6.00%, 11/01/23

    2,400       2,403,288  
   

 

 

 
    46,919,028  
Indiana — 4.5%  

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

   

6.75%, 01/01/34

    790       911,431  

7.00%, 01/01/44

    1,905       2,215,058  

Indiana Finance Authority, RB, Series A:

   

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

    3,280       3,519,735  

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

    450       485,384  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48

    1,430       1,539,180  

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51

    405       439,644  

Sisters of St. Francis Health Services, 5.25%, 11/01/19 (b)

    840       855,036  

Indiana Finance Authority, Refunding RB, Parkview Health System, Series A:

   

5.75%, 05/01/19 (b)

    2,310       2,310,000  

5.75%, 05/01/31

    485       485,000  

Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40

    1,270       1,404,429  
   

 

 

 
    14,164,897  
Iowa — 1.4%  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

Series B, 5.25%, 12/01/50 (d)

    2,810       3,011,393  

Midwestern Disaster Area, 5.25%, 12/01/25

    460       495,599  

Midwestern Disaster Area, 5.88%, 12/01/26 (a)

    410       430,939  

Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22

    410       425,809  
   

 

 

 
    4,363,740  
Kentucky — 1.2%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45

    995       1,069,535  

Kentucky Economic Development Finance Authority, Refunding RB, Louisville Arena Authority, Inc. (AGM), 5.00%, 12/01/45

    1,235       1,395,797  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43 (e)

    1,200       1,210,056  
   

 

 

 
    3,675,388  
Louisiana — 3.3%  

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

    3,320       3,530,023  

Louisiana Public Facilities Authority, Refunding RB, Tulane University of Lousiana Project, 4.00%, 12/15/50

    2,000       2,077,540  
 

 

 

64    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

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:

   

5.50%, 05/15/30

  $ 1,020     $ 1,052,793  

5.25%, 05/15/31

    870       916,841  

5.25%, 05/15/32

    1,110       1,194,660  

5.25%, 05/15/33

    1,205       1,292,158  

5.25%, 05/15/35

    505       549,086  
   

 

 

 
    10,613,101  
Maryland — 0.6%  

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

    750       771,510  

Maryland Health & Higher Educational Facilities Authority, RB:

   

Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    420       487,691  

University of Maryland Medical System, Series B (NPFGC), 7.00%, 07/01/22 (f)

    595       664,681  
   

 

 

 
    1,923,882  
Massachusetts — 0.3%  

Massachusetts Development Finance Agency, Refunding RB, New Bridge Charles, Inc. (a) :

   

4.00%, 10/01/32

    215       214,772  

4.13%, 10/01/42

    470       453,879  

5.00%, 10/01/57

    340       357,378  
   

 

 

 
    1,026,029  
Michigan — 3.7%  

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

    4,425       4,791,346  

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:

   

5.50%, 05/15/20 (b)

    760       789,534  

5.50%, 05/15/36

    620       639,865  

Michigan Finance Authority, Refunding RB:

   

Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44

    880       941,309  

Trinity Health Credit Group, 5.00%, 12/01/48

    2,000       2,316,660  

Michigan State University, Refunding RB, Board of Trustees, Series B, 5.00%, 02/15/48

    990       1,168,022  

Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.00%, 06/30/48

    1,070       1,220,067  
   

 

 

 
    11,866,803  
Minnesota — 1.4%  

Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A:

   

4.25%, 02/15/48

    2,020       2,130,838  

5.25%, 02/15/53

    2,045       2,344,122  
   

 

 

 
    4,474,960  
Mississippi — 3.4%  

County of Lowndes Mississippi, Refunding RB, Solid Waste Disposal & Pollution Control, Weyerhaeuser Co. Project, Series A, 6.80%, 04/01/22

    3,000       3,325,350  

State of Mississippi, RB, Series A:

   

5.00%, 10/15/37

    1,000       1,174,250  

4.00%, 10/15/38

    5,000       5,287,800  

University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 09/01/19 (b)

    1,065       1,078,451  
   

 

 

 
    10,865,851  
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       279,712  
Security   Par
(000)
    Value  
Missouri (continued)  

State of Missouri Health & Educational Facilities Authority, RB, Kansas City Art Institute, 5.00%, 09/01/48

  $ 2,610     $ 2,969,241  

State of Missouri Health & Educational Facilities Authority, Refunding RB:

   

Mercy Health, Series C, 5.00%, 11/15/47

    2,570       2,961,951  

St. Louis College of Pharmacy Project, 5.50%, 05/01/43

    245       263,725  
   

 

 

 
    6,474,629  
Nebraska — 0.8%  

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

   

5.25%, 09/01/37

    825       899,803  

5.00%, 09/01/42

    1,445       1,565,007  
   

 

 

 
    2,464,810  
New Hampshire — 1.4%  

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

   

Series B, 4.63%, 11/01/42

    1,545       1,564,467  

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

    805       821,197  

New Hampshire Health and Education Facilities Authority Act, RB, Dartmouth College Issue, 5.25%, 06/01/19 (b)

    2,005       2,010,975  
   

 

 

 
    4,396,639  
New Jersey — 10.8%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,675       1,803,070  

5.25%, 11/01/44

    1,525       1,639,253  

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

    1,085       1,092,226  

New Jersey EDA, RB:

   

Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29

    1,955       2,132,533  

Series EEE, 5.00%, 06/15/48

    3,690       4,039,923  

New Jersey EDA, Refunding ARB, Port Network Container Terminal LLC Project, AMT, 5.00%, 10/01/47

    1,425       1,550,044  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31

    2,240       2,499,235  

New Jersey State Turnpike Authority, RB:

   

Series A, 5.00%, 01/01/43

    740       802,878  

Series E, 5.00%, 01/01/45

    2,615       2,933,036  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.00%, 06/15/44

    445       472,661  

Transportation Program, Series AA, 5.00%, 06/15/44

    825       865,384  

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

    1,635       1,714,118  

Transportation System, Series B, 5.25%, 06/15/36

    2,460       2,567,059  

Tobacco Settlement Financing Corp., Refunding RB, Series A, 5.25%, 06/01/46

    525       587,260  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Sub-Series B, 5.00%, 06/01/46

    9,200       9,595,232  
   

 

 

 
    34,293,912  
New York — 9.4%  

City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 02/01/42

    1,960       2,109,646  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41 (a)

    1,800       1,843,884  

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

    1,960       1,933,854  

New York Counties Tobacco Trust IV, Refunding RB, Tobacco Settlement Pass-Through Bonds, Series A, 5.00%, 06/01/38

    1,910       1,898,311  

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

    10,735       11,674,634  
 

 

 

S CHEDULES   OF  I NVESTMENTS      65  


Schedule of Investments   (continued)

April 30, 2019

  

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     $ 1,258,784  

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

    2,860       3,077,160  

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

    340       374,765  

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

    850       933,504  

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       1,233,490  

6.00%, 12/01/42

    1,250       1,322,900  

State of New York Environmental Facilities Corp., RB, Subordinated SRF Bonds, Series B, 5.00%, 06/15/48

    1,780       2,119,606  
   

 

 

 
    29,780,538  
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       658,332  
   

 

 

 
North Dakota — 0.3%  

County of Cass North Dakota, Refunding RB, Essentia Health Obligated Group, Series B, 5.25%, 02/15/58

    950       1,065,454  
   

 

 

 
Ohio — 1.4%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.88%, 06/01/47

    3,230       3,060,425  

County of Franklin Ohio, RB:

   

Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40

    660       714,912  

Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    400       459,164  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53

    275       293,997  
   

 

 

 
    4,528,498  
Oklahoma — 1.8%  

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

    2,050       2,168,305  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.50%, 08/15/57

    1,155       1,324,670  

Oklahoma Turnpike Authority, RB, 2nd Series C, 4.00%, 01/01/42

    1,950       2,082,366  
   

 

 

 
    5,575,341  
Pennsylvania — 2.8%  

Allentown Neighborhood Improvement Zone Development Authority, RB, Subordinate, City Center Project (a) :

   

5.00%, 05/01/28

    225       239,238  

5.13%, 05/01/32

    230       241,930  

5.38%, 05/01/42

    435       458,955  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42

    635       682,949  

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

   

4.00%, 09/01/49

    555       578,227  

5.00%, 09/01/43

    1,220       1,394,826  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 06/30/42

    850       931,260  

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

    1,890       1,919,578  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

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

  $ 1,035     $ 1,087,485  

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

    1,105       1,230,937  
   

 

 

 
    8,765,385  
Puerto Rico — 3.1%  

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

   

5.50%, 05/15/39

    675       682,526  

5.63%, 05/15/43

    690       697,569  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Senior Lien, Series A:

   

5.00%, 07/01/33

    2,430       2,390,513  

5.13%, 07/01/37

    695       683,706  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A:

   

6.00%, 07/01/38

    720       720,900  

6.00%, 07/01/44

    1,305       1,306,631  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:

   

4.50%, 07/01/34

    27       27,391  

4.75%, 07/01/53

    1,084       1,035,328  

5.00%, 07/01/58

    2,373       2,338,734  
   

 

 

 
    9,883,298  
Rhode Island — 2.0%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    820       879,392  

Series B, 4.50%, 06/01/45

    2,645       2,600,167  

Series B, 5.00%, 06/01/50

    2,945       3,020,893  
   

 

 

 
    6,500,452  
South Carolina — 6.8%  

South Carolina Jobs EDA, Refunding RB:

   

Anmed Health Project, 5.00%, 02/01/36

    2,505       2,777,619  

Prisma Health Obligated Group, Series A, 5.00%, 05/01/48

    3,060       3,472,060  

State of South Carolina Ports Authority, ARB:

   

5.25%, 07/01/20 (b)

    3,280       3,417,038  

AMT, 5.25%, 07/01/55

    1,295       1,445,350  

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

    6,180       6,862,766  

State of South Carolina Public Service Authority, Refunding RB:

   

Series A, 5.00%, 12/01/50

    1,430       1,581,623  

Series E, 5.25%, 12/01/55

    1,735       1,947,867  
   

 

 

 
    21,504,323  
Tennessee — 0.9%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45

    995       1,069,535  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40

    690       774,049  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A, 5.25%, 10/01/58

    955       1,098,508  
   

 

 

 
    2,942,092  
Texas — 8.4%  

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.25%, 01/01/21 (b)

    2,140       2,296,819  
 

 

 

66    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 07/01/29

  $ 965     $ 1,065,437  

City of San Antonio Texas Electric & Gas Systems Revenue, Refunding RB, Series A, 5.00%, 02/01/48

    1,155       1,375,016  

Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 08/15/43

    745       834,556  

County of Fort Bend Texas Industrial Development Corp., RB, NRG Energy Inc. Project, Series B, 4.75%, 11/01/42

    670       687,789  

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       540,294  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/48

    4,545       5,218,933  

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

    1,000       1,061,600  

New Hope Cultural Education Facilities Finance Corp., Refunding RB, Jubilee Academic Center, Series A, 5.00%, 08/15/46 (a)

    1,980       2,004,156  

North Texas Tollway Authority, Refunding RB, Series A:

   

1st Tier System, 6.25%, 01/01/39

    1,310       1,314,493  

5.00%, 01/01/38

    925       1,040,736  

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

    2,470       2,902,991  

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

   

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

    2,000       2,113,660  

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

    2,775       2,863,495  

Texas Transportation Commission, RB, First Tier Toll Revenue, 5.00%, 08/01/57

    1,140       1,289,044  
   

 

 

 
    26,609,019  
Utah — 1.5%  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19 (b)

    2,780       2,807,188  

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

   

5.00%, 07/01/48

    875       1,010,240  

5.00%, 07/01/47

    915       1,043,823  
   

 

 

 
    4,861,251  
Virginia — 1.9%  

County of Front Royal & Warren IDA, RB, Valley Health System Obligated Group, 4.00%, 01/01/50

    1,160       1,204,126  

Lexington Industrial Development Authority, RB, Kendal st Lexington, Series A, 5.00%, 01/01/48

    820       875,924  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 01/01/32

    1,615       1,729,407  

6.00%, 01/01/37

    1,940       2,140,266  
   

 

 

 
    5,949,723  
Washington — 2.8%  

Port of Seattle Washington, ARB, Series A, AMT, 5.00%, 05/01/43

    1,465       1,666,701  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40

    755       834,109  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45

    2,290       2,523,488  

Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, 6.38%, 10/01/36

    3,700       3,714,023  
   

 

 

 
    8,738,321  
Security   Par
(000)
    Value  
Wisconsin — 3.0%  

State of Wisconsin, Refunding RB, Series A, 6.00%, 05/01/19 (b)

  $ 7,100     $ 7,100,000  

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

    2,465       2,505,007  
   

 

 

 
    9,605,007  
   

 

 

 

Total Municipal Bonds — 127.8%
(Cost — $380,688,332)

 

    405,491,383  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts (g)

 

California — 5.5%

 

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, 4.00%, 04/01/42 (a)(d)(h)

    3,057       3,263,953  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19 (b)

    9,480       9,648,997  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    3,075       3,554,818  

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

    1,077       1,087,309  
   

 

 

 
    17,555,077  
Colorado — 1.5%  

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

    2,252       2,666,104  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 07/01/34 (h)

    2,129       2,139,691  
   

 

 

 
    4,805,795  
Florida — 1.9%  

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

    5,679       5,946,835  
   

 

 

 
Illinois — 1.1%  

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

    3,225       3,414,759  
   

 

 

 
Massachusetts — 3.1%  

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

    2,043       2,156,308  

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 5.00%, 07/01/47

    4,574       5,192,088  

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

    2,266       2,416,690  
   

 

 

 
    9,765,086  
New York — 6.5%  

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       1,582,088  

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

   

5.75%, 02/15/21 (b)

    997       1,066,637  

5.75%, 02/15/47

    613       656,163  

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

    6,440       7,046,709  

Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55

    2,595       3,002,882  

State of New York Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/46

    6,617       7,155,849  
   

 

 

 
    20,510,328  
 

 

 

S CHEDULES   OF  I NVESTMENTS      67  


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
North Carolina — 0.9%  

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55

  $ 2,550     $ 2,897,476  
   

 

 

 
Pennsylvania — 0.9%  

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

    2,340       2,747,316  
   

 

 

 
Rhode Island — 0.5%  

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

    1,530       1,573,146  
   

 

 

 
Texas — 3.3%  

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

    2,520       2,766,418  

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

    3,400       3,634,974  

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

    2,030       2,080,206  

University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43

    1,831       1,994,138  
   

 

 

 
    10,475,736  
Wisconsin — 0.9%  

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

    2,833       2,955,147  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 26.1%
(Cost — $79,175,147)

 

    82,646,701  
 

 

 

 

Total Long-Term Investments — 153.9%
(Cost — $459,863,479)

 

    488,138,084  
 

 

 

 
Security       
Shares
    Value  
Short-Term Securities — 3.3%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.94% (i)(j)

    10,503,939     $ 10,504,989  
   

 

 

 

Total Short-Term Securities — 3.3%
(Cost — $10,506,034)

 

    10,504,989  
 

 

 

 

Total Investments — 157.2%
(Cost — $470,369,513)

 

    498,643,073  

Other Assets Less Liabilities — 2.1%

 

    6,740,710  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (15.2)%

 

    (48,209,224

VMTP Shares at Liquidation Value — (44.1)%

 

    (140,000,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 317,174,559  
 

 

 

 

 

(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)  

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 the 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 July 1, 2034, is $9,306,038. See Note 4 of the Notes to Financial Statements for details

(i)  

Annualized 7-day yield as of period end.

 
(j)  

During the year ended April 30, 2019, investments in issuers considered to be affiliates/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
04/30/19

     Value at
04/30/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     986,303        9,517,636        10,503,939      $ 10,504,989      $ 96,235      $ 2,784      $ (1,045
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     38          06/19/19        $ 4,700        $ (22,996

Long U.S. Treasury Bond

     151          06/19/19          22,268          (88,632

5-Year U.S. Treasury Note

     11          06/28/19          1,272          (8,095
                 

 

 

 
                  $ (119,723
                 

 

 

 

 

 

68    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Schedule of Investments   (continued)

April 30, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of year 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  

Liabilities Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts (a)

   $      $      $      $      $ 119,723      $      $ 119,723  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the year ended April 30, 2019, 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

   $      $      $      $      $ (601,670    $      $ (601,670
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ (142,212    $      $ (142,212
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 20,090,104  

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)

   $        $ 488,138,084        $        $ 488,138,084  

Short-Term Securities

     10,504,989                            10,504,989  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 10,504,989        $ 488,138,084        $             —        $ 498,643,073  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments (b)

                 

Liabilities:

                 

Interest rate contracts

   $ (119,723      $        $        $ (119,723
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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 year 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

   $        $ (47,982,013      $        $ (47,982,013

VMTP Shares at Liquidation Value

              (140,000,000                 (140,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (187,982,013      $             —        $ (187,982,013
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

S CHEDULES   OF  I NVESTMENTS      69  


Statements of Assets and Liabilities

April 30, 2019

 

     MUA      MEN      MHD      MUH  

ASSETS

          

Investments at value — unaffiliated (a)

  $ 574,535,914      $ 577,290,166      $ 360,403,537      $ 279,101,606  

Investments at value — affiliated (b)

    767,464        580,508        6,881,187        53,950  

Cash

    84,438        147,766        71,745        66,054  

Cash pledged for futures contracts

    359,950        629,900        301,550        276,200  

Receivables:

          

Investments sold

    782,915               10,000        10,000  

Dividends — affiliated

    1,365        1,443        9,646        1,321  

Interest — unaffiliated

    9,635,134        7,066,115        5,295,270        3,773,191  

Prepaid expenses

    12,744        71,078        21,392        20,928  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

    586,179,924        585,786,976        372,994,327        283,303,250  
 

 

 

    

 

 

    

 

 

    

 

 

 

ACCRUED LIABILITIES

          

Payables:

          

Investments purchased

    1,934,600        597,832                

Income dividend distributions — Common Shares

    1,963,762        1,305,985        957,907        697,181  

Interest expense and fees

    442,038        453,505        253,186        253,653  

Investment advisory fees

    262,132        237,696        167,045        126,552  

Directors’ and Officer’s fees

    4,196        2,861        2,016        1,507  

Other accrued expenses

    198,821        195,546        152,671        134,610  

Variation margin on futures contracts

    70,469        123,392        58,727        53,688  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total accrued liabilities

    4,876,018        2,916,817        1,591,552        1,267,191  
 

 

 

    

 

 

    

 

 

    

 

 

 

OTHER LIABILITIES

          

TOB Trust Certificates

    71,659,281        91,348,628        52,673,965        53,408,501  

VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs (c)(d)

           142,327,121                

VMTP Shares, at liquidation value of $100,000 per share (c)(d)

                  83,700,000        55,000,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total other liabilities

    71,659,281        233,675,749        136,373,965        108,408,501  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

    76,535,299        236,592,566        137,965,517        109,675,692  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 509,644,625      $ 349,194,410      $ 235,028,810      $ 173,627,558  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

          

Paid-in capital (e)(f)(g)

  $ 478,975,827      $ 311,656,850      $ 211,660,385      $ 155,975,320  

Accumulated earnings

    30,668,798        37,537,560        23,368,425        17,652,238  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 509,644,625      $ 349,194,410      $ 235,028,810      $ 173,627,558  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, offering and redemption price per share

  $ 14.14      $ 11.76      $ 16.56      $ 15.32  
 

 

 

    

 

 

    

 

 

    

 

 

 

(a)  Investments at cost — unaffiliated

  $ 544,914,332      $ 537,563,790      $ 335,964,625      $ 261,707,486  

(b)  Investments at cost — affiliated

  $ 767,464      $ 580,508      $ 6,881,872      $ 53,950  

(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

    36,032,338        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.

 

 

70    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Statements of Assets and Liabilities   (continued)

April 30, 2019

 

     MUS      MUI      MVT  

ASSETS

       

Investments at value — unaffiliated (a)

  $ 282,003,288      $ 954,872,589      $ 488,138,084  

Investments at value — affiliated (b)

    2,455,229        3,436,032        10,504,989  

Cash

    54,849        125,704        104,969  

Cash pledged for futures contracts

    233,150        584,900        441,050  

Receivables:

       

Investments sold

    681,082        1,175,000        520,000  

Dividends — affiliated

    3,467        9,830        14,148  

Interest — unaffiliated

    4,092,688        13,423,922        7,381,908  

Prepaid expenses

    20,963        27,504        21,975  
 

 

 

    

 

 

    

 

 

 

Total assets

    289,544,716        973,655,481        507,127,123  
 

 

 

    

 

 

    

 

 

 

ACCRUED LIABILITIES

       

Payables:

       

Investments purchased

    1,736,312                

Income dividend distributions — Common Shares

    579,313        1,704,184        1,268,797  

Investment advisory fees

    121,494        437,146        206,281  

Interest expense and fees

    96,155        373,155        227,211  

Directors’ and Officer’s fees

    1,538        325,982        2,657  

Other accrued expenses

    136,145        290,348        179,479  

Variation margin on futures contracts

    45,844        117,232        86,126  
 

 

 

    

 

 

    

 

 

 

Total accrued liabilities

    2,716,801        3,248,047        1,970,551  
 

 

 

    

 

 

    

 

 

 

OTHER LIABILITIES

       

TOB Trust Certificates

    23,917,620        93,420,751        47,982,013  

VMTP Shares, at liquidation value of $100,000 per share (c)(d)

    87,000,000        287,100,000        140,000,000  
 

 

 

    

 

 

    

 

 

 

Total other liabilities

    110,917,620        380,520,751        187,982,013  
 

 

 

    

 

 

    

 

 

 

Total liabilities

    113,634,421        383,768,798        189,952,564  
 

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 175,910,295      $ 589,886,683      $ 317,174,559  
 

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

       

Paid-in capital (e)(f)(g)

  $ 168,134,858      $ 543,452,920      $ 289,726,481  

Accumulated earnings

    7,775,437        46,433,763        27,448,078  
 

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 175,910,295      $ 589,886,683      $ 317,174,559  
 

 

 

    

 

 

    

 

 

 

Net asset value, offering and redemption price per share

  $ 13.51      $ 15.40      $ 14.87  
 

 

 

    

 

 

    

 

 

 

(a)  Investments at cost — unaffiliated

  $ 266,901,003      $ 908,045,757      $ 459,863,479  

(b)  Investments at cost — affiliated

  $ 2,455,229      $ 3,436,375      $ 10,506,034  

(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        21,324,323  

(g)  Common Shares authorized

    199,993,770        199,984,329        199,991,600  

See notes to financial statements.

 

 

F INANCIAL S TATEMENTS      71  


Statements of Operations

Year Ended April 30, 2019

 

     MUA     MEN     MHD     MUH  

INVESTMENT INCOME

       

Interest — unaffiliated

  $ 29,051,690     $ 24,422,286     $ 17,187,773     $ 12,958,431  

Dividends — affiliated

    38,707       21,238       46,085       9,978  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    29,090,397       24,443,524       17,233,858       12,968,409  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory

    3,169,074       2,861,079       2,055,135       1,546,264  

Accounting services

    90,771       90,621       64,123       53,272  

Professional

    86,867       90,148       77,257       65,622  

Transfer agent

    53,363       37,834       26,196       23,559  

Directors and Officer

    45,041       30,366       21,062       15,713  

Registration

    13,877       11,549       9,483       9,466  

Printing

    10,450       11,519       9,335       8,481  

Custodian

    9,526       11,458       7,079       7,825  

Rating agency

          43,550       43,438       43,382  

Miscellaneous

    30,622       17,654       6,964       6,151  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    3,509,591       3,205,778       2,320,072       1,779,735  

Interest expense, fees and amortization of offering costs (a)

    1,580,939       5,349,177       3,391,975       2,603,777  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    5,090,530       8,554,955       5,712,047       4,383,512  

Less fees waived and/or reimbursed by the Manager

    (2,715     (1,501     (3,099     (714
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

    5,087,815       8,553,454       5,708,948       4,382,798  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    24,002,582       15,890,070       11,524,910       8,585,611  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

    3,848,659       (584,652     (21,007     471,274  

Investments — affiliated

    905       718       273       232  

Futures contracts

    (612,875     (1,067,315     (411,161     (438,606

Capital gain distributions from investment companies — affiliated

    139       29       138       22  
 

 

 

   

 

 

   

 

 

   

 

 

 
    3,236,828       (1,651,220     (431,757     32,922  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated

    1,441,539       11,949,296       3,604,988       2,876,403  

Investments — affiliated

                (685      

Futures contracts

    (141,425     (268,871     (91,864     (98,539
 

 

 

   

 

 

   

 

 

   

 

 

 
    1,300,114       11,680,425       3,512,439       2,777,864  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    4,536,942       10,029,205       3,080,682       2,810,786  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $ 28,539,524     $ 25,919,275     $ 14,605,592     $ 11,396,397  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  

Related to TOB Trusts, VRDP Shares and/or VMTP Shares.

See notes to financial statements.

 

 

72    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Statements of Operations   (continued)

Year Ended April 30, 2019

 

     MUS     MUI     MVT  

INVESTMENT INCOME

     

Interest — unaffiliated

  $ 11,977,222     $ 36,493,888     $ 23,397,199  

Dividends — affiliated

    40,640       43,478       96,235  
 

 

 

   

 

 

   

 

 

 

Total investment income

    12,017,862       36,537,366       23,493,434  
 

 

 

   

 

 

   

 

 

 

EXPENSES

     

Investment advisory

    1,554,248       5,253,912       2,541,668  

Accounting services

    52,951       128,987       83,545  

Professional

    66,821       117,728       79,606  

Rating agency

    43,444       43,824       43,541  

Transfer agent

    22,563       47,425       32,524  

Directors and Officer

    15,901       64,267       28,058  

Registration

    9,410       14,762       9,829  

Printing

    8,780       14,861       10,512  

Custodian

    6,840       19,593       9,014  

Miscellaneous

    10,849       83,038       11,511  
 

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    1,791,807       5,788,397       2,849,808  

Interest expense, fees and amortization of offering costs (a)

    2,686,690       9,312,157       4,797,406  
 

 

 

   

 

 

   

 

 

 

Total expenses

    4,478,497       15,100,554       7,647,214  

Less fees waived and/or reimbursed by the Manager

    (96,934     (2,775     (6,799
 

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

    4,381,563       15,097,779       7,640,415  
 

 

 

   

 

 

   

 

 

 

Net investment income

    7,636,299       21,439,587       15,853,019  
 

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

     

Net realized gain (loss) from:

     

Investments — unaffiliated

    (155,735     (293,007     1,252,436  

Investments — affiliated

    2,652       (1,262     2,364  

Futures contracts

    (434,638     (960,803     (601,670

Capital gain distributions from investment companies — affiliated

    279       181       420  
 

 

 

   

 

 

   

 

 

 
    (587,442     (1,254,891     653,550  
 

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

     

Investments — unaffiliated

    3,224,694       20,120,178       3,557,081  

Investments — affiliated

          (343     (1,045

Futures contracts

    (110,095     (435,561     (142,212
 

 

 

   

 

 

   

 

 

 
    3,114,599       19,684,274       3,413,824  
 

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    2,527,157       18,429,383       4,067,374  
 

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $ 10,163,456     $ 39,868,970     $ 19,920,393  
 

 

 

   

 

 

   

 

 

 

(a) Related to TOB Trusts, VRDP Shares and/or VMTP Shares.

See notes to financial statements.

 

 

F INANCIAL S TATEMENTS      73  


Statements of Changes in Net Assets

 

    MUA           MEN  
    Year Ended April 30,           Year Ended April 30,  
     04/30/19     04/30/18            2019     2018  

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

OPERATIONS

         

Net investment income

  $ 24,002,582     $ 24,585,086       $ 15,890,070     $ 17,481,665  

Net realized gain (loss)

    3,236,828       3,861,385         (1,651,220     1,316,883  

Net change in unrealized appreciation (depreciation)

    1,300,114       (6,115,970       11,680,425       (8,990,694
 

 

 

   

 

 

     

 

 

   

 

 

 

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

    28,539,524       22,330,501         25,919,275       9,807,854  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS (a)(b)

         

Decrease in net assets resulting from distributions to Common Shareholders

    (23,709,465     (24,403,775       (17,010,899     (19,006,534
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Reinvestment of common distributions

    344,118       1,238,029               447,450  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (b)

         

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

    5,174,177       (835,245       8,908,376       (8,751,230

Beginning of year

    504,470,448       505,305,693         340,286,034       349,037,264  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of year

  $ 509,644,625     $ 504,470,448       $ 349,194,410     $ 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.

 

 

74    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Statements of Changes in Net Assets   (continued)

 

    MHD           MUH  
    Year Ended April 30,           Year Ended April 30,  
     2019     2018            2019     2018  

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

OPERATIONS

         

Net investment income

  $ 11,524,910     $ 12,456,818       $ 8,585,611     $ 9,097,811  

Net realized gain (loss)

    (431,757     275,314         32,922       349,549  

Net change in unrealized appreciation (depreciation)

    3,512,439       (5,682,277       2,777,864       (4,335,638
 

 

 

   

 

 

     

 

 

   

 

 

 

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

    14,605,592       7,049,855         11,396,397       5,111,722  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS (a)(b)

         

Decrease in net assets resulting from distributions to Common Shareholders

    (12,498,142     (13,224,063       (9,114,553     (9,693,560
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Reinvestment of common distributions

          411,605               290,507  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (b)

         

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

    2,107,450       (5,762,603       2,281,844       (4,291,331

Beginning of year

    232,921,360       238,683,963         171,345,714       175,637,045  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of year

  $ 235,028,810     $ 232,921,360       $ 173,627,558     $ 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.

 

 

F INANCIAL S TATEMENTS      75  


Statements of Changes in Net Assets   (continued)

 

    MUS           MUI  
    Year Ended April 30,           Year Ended April 30,  
     2019     2018            04/30/19     04/30/18  

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

OPERATIONS

         

Net investment income

  $ 7,636,299     $ 9,174,345       $ 21,439,587     $ 22,724,306  

Net realized gain (loss)

    (587,442     291,275         (1,254,891     2,650,231  

Net change in unrealized appreciation (depreciation)

    3,114,599       (7,382,682       19,684,274       (11,610,455
 

 

 

   

 

 

     

 

 

   

 

 

 

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

    10,163,456       2,082,938         39,868,970       13,764,082  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS (a)(b)

         

Decrease in net assets resulting from distributions to Common Shareholders

    (8,071,331     (9,919,384       (21,750,977     (22,940,382
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Reinvestment of common distributions

          40,885                
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (b)

         

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

    2,092,125       (7,795,561       18,117,993       (9,176,300

Beginning of year

    173,818,170       181,613,731      

 

 

 

571,768,690

 

 

 

 

 

 

580,944,990

 

 

 

 

 

   

 

 

     

 

 

   

 

 

 

End of year

  $ 175,910,295     $ 173,818,170       $ 589,886,683     $ 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.

 

 

76    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Statements of Changes in Net Assets   (continued)

 

    MVT  
    Year Ended April 30,  
     2019     2018  

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

   

OPERATIONS

   

Net investment income

  $ 15,853,019     $ 17,559,402  

Net realized gain

    653,550       910,384  

Net change in unrealized appreciation (depreciation)

    3,413,824       (9,581,981
 

 

 

   

 

 

 

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

    19,920,393       8,887,805  
 

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS (a)(b)

   

Decrease in net assets resulting from distributions to Common Shareholders

    (17,281,902     (18,273,763
 

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

   

Reinvestment of common distributions

    274,917       1,708,157  
 

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (b)

   

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

    2,913,408       (7,677,801

Beginning of year

    314,261,151       321,938,952  
 

 

 

   

 

 

 

End of year

  $ 317,174,559     $ 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.

 

 

F INANCIAL S TATEMENTS      77  


Statements of Cash Flows

Year Ended April 30, 2019

 

     MUA     MEN     MHD     MUH  

CASH PROVIDED BY OPERATING ACTIVITIES

       

Net increase in net assets resulting from operations

  $ 28,539,524     $ 25,919,275     $ 14,605,592     $ 11,396,397  

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

       

Proceeds from sales of long-term investments

    106,607,161       136,603,910       84,857,081       88,853,461  

Purchases of long-term investments

    (109,391,354     (140,165,645     (67,643,846     (89,036,949

Net (purchases)/proceeds from sales of short-term securities

    1,460,013       (579,790     (6,147,609     924,347  

Amortization of premium and accretion of discount on investments and other fees

    236,763       (130,324     331,276       (114

Net realized (gain)/loss on investments

    (3,849,564     583,934       20,734       (471,506

Net unrealized (appreciation) on investments

    (1,441,539     (11,949,296     (3,604,303     (2,876,403

(Increase) Decrease in Assets:

       

Receivables:

       

Dividends — affiliated

    582       (461     (9,057     209  

Interest — unaffiliated

    54,759       264,509       314,834       211,817  

Prepaid expenses

    4,382       1,589       601       71  

Other assets

    374       2,408       617       657  

Increase (Decrease) in Liabilities:

       

Payables:

       

Interest expense and fees

    133,957       128,874       18,351       64,765  

Investment advisory fees

    2,653       4,989       (4,971     775  

Directors’ and Officer’s fees

    (27     (262     (60     (18

Variation margin on futures contracts

    33,938       47,673       25,602       27,813  

Other accrued expenses

    12,524       12,369       4,280       6,046  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    22,404,146       10,743,752       22,769,122       9,101,368  
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH (USED FOR) FINANCING ACTIVITIES

       

Proceeds from TOB Trust Certificates

    10,294,792       15,842,024       11,691,258       17,734,829  

Repayments of TOB Trust Certificates

    (9,045,495     (8,603,541     (21,696,784     (17,421,203

Proceeds from Loan for TOB Trust Certificates

    1,545,495             508,002       1,337,595  

Repayments of Loan for TOB Trust Certificates

    (1,545,495           (508,002     (1,337,595

Cash dividends paid to Common Shareholders

    (23,364,005     (17,129,625     (12,533,620     (9,182,571

Decrease in bank overdraft

          (395,816            

Amortization of deferred offering costs

          9,972              
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used for) financing activities

    (22,114,708     (10,276,986     (22,539,146     (8,868,945
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH

       

Net increase in restricted and unrestricted cash

    289,438       466,766       229,976       232,423  

Restricted and unrestricted cash at beginning of year

    154,950       310,900       143,319       109,831  
 

 

 

   

 

 

   

 

 

   

 

 

 

Restricted and unrestricted cash at end of year

  $ 444,388     $ 777,666     $ 373,295     $ 342,254  
 

 

 

   

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

       

Cash paid during the year for interest expense

  $ 1,446,982     $ 5,257,888     $ 3,373,624     $ 2,539,012  
 

 

 

   

 

 

   

 

 

   

 

 

 

NON-CASH FINANCING ACTIVITIES

       

Capital shares issued in reinvestment of distributions paid to Common Shareholders

  $ 344,118     $     $     $  
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF YEAR TO THE
STATEMENTS OF ASSETS AND LIABILITIES

 

Cash

  $ 84,438     $ 147,766     $ 71,745     $ 66,054  

Cash pledged:

 

Futures contracts

    359,950       629,900       301,550       276,200  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 444,388     $ 777,666     $ 373,295     $ 342,254  
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR 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  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

 

78    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Statements of Cash Flows   (continued)

Year Ended April 30, 2019

 

     MUS     MUI     MVT  

CASH PROVIDED BY OPERATING ACTIVITIES

     

Net increase in net assets resulting from operations

  $ 10,163,456     $ 39,868,970     $ 19,920,393  

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

     

Proceeds from sales of long-term investments

    78,568,179       252,653,557       149,887,098  

Purchases of long-term investments

    (76,813,218     (259,135,309     (128,076,784

Net (purchases)/proceeds from sales of short-term securities

    369,643       (3,437,637     (9,517,367

Amortization of premium and accretion of discount on investments and other fees

    1,511,549       6,854,237       1,175,406  

Net realized (gain)/loss on investments

    153,083       294,269       (1,254,800

Net unrealized (appreciation) on investments

    (3,224,694     (20,119,835     (3,556,036

(Increase) Decrease in Assets:

     

Receivables:

     

Dividends — affiliated

    (1,623     (79     (9,048

Interest — unaffiliated

    59,657       (953,877     870,651  

Prepaid expenses

    59       3,426       1,555  

Other assets

    398       2,879       2,609  

Increase (Decrease) in Liabilities:

     

Payables:

     

Investment advisory fees

    (9     9,141       (4,698

Interest expense and fees

    (3,227     157,537       (7,375

Directors’ and Officer’s fees

    (42     9,215       (129

Variation margin on futures contracts

    24,844       60,607       48,720  

Other accrued expenses

    7,335       58,608       6,486  
 

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    10,815,390       16,325,709       29,486,681  
 

 

 

   

 

 

   

 

 

 

CASH (USED FOR) FINANCING ACTIVITIES

     

Proceeds from TOB Trust Certificates

    7,770,609       31,540,108       15,100,155  

Repayments of TOB Trust Certificates

    (10,091,363     (24,566,337     (27,105,793

Proceeds from Loan for TOB Trust Certificates

                744,282  

Repayments of Loan for TOB Trust Certificates

                (744,282

Cash dividends paid to Common Shareholders

    (8,318,679     (21,750,977     (17,091,074

Decrease in bank overdraft

          (1,152,799      
 

 

 

   

 

 

   

 

 

 

Net cash (used for) financing activities

    (10,639,433     (15,930,005     (29,096,712
 

 

 

   

 

 

   

 

 

 

CASH

     

Net increase in restricted and unrestricted cash

    175,957       395,704       389,969  

Restricted and unrestricted cash at beginning of year

    112,042       314,900       156,050  
 

 

 

   

 

 

   

 

 

 

Restricted and unrestricted cash at end of year

  $ 287,999     $ 710,604     $ 546,019  
 

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

     

Cash paid during the year for interest expense

  $ 2,689,917     $ 9,154,620     $ 4,804,781  
 

 

 

   

 

 

   

 

 

 

NON-CASH FINANCING ACTIVITIES

     

Capital shares issued in reinvestment of distributions paid to Common Shareholders

  $     $     $ 274,917  
 

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF YEAR TO THE STATEMENTS OF
ASSETS AND LIABILITIES

 

Cash

  $ 54,849     $ 125,704     $ 104,969  

Cash pledged:

 

Futures contracts

    233,150       584,900       441,050  
 

 

 

   

 

 

   

 

 

 
  $ 287,999     $ 710,604     $ 546,019  
 

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR 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  
 

 

 

   

 

 

   

 

 

 

 

 

F INANCIAL S TATEMENTS      79  


Financial Highlights  

(For a share outstanding throughout each period)

 

    MUA  
    Year Ended April 30,  
     2019      2018      2017      2016      2015  

Net asset value, beginning of year

  $ 14.01      $ 14.07      $ 14.45      $ 14.12      $ 13.56  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (a)

    0.67        0.68        0.70        0.72        0.73  

Net realized and unrealized gain (loss)

    0.12        (0.06      (0.38      0.35        0.59  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.79        0.62        0.32        1.07        1.32  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income (b)

    (0.66      (0.68      (0.70      (0.74      (0.76
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 14.14      $ 14.01      $ 14.07      $ 14.45      $ 14.12  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of year

  $ 14.98      $ 13.21      $ 14.82      $ 14.74      $ 14.22  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders (c)

 

Based on net asset value

    5.97      4.47      2.23      7.90      10.11
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    19.07      (6.48 )%       5.56      9.30      17.02
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

 

Total expenses

    1.01      0.93      0.87      0.81      0.82
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    1.01      0.93      0.87      0.81      0.82
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees, and amortization of offering costs (d)

    0.70      0.69      0.69      0.70      0.71
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.77      4.83      4.93      5.09      5.24
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

 

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

  $ 509,645      $ 504,470      $ 505,306      $ 517,697      $ 505,341  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of year (000)

  $ 71,659      $ 71,925      $ 67,507      $ 66,087      $ 61,066  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    19      15      11      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)  

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)  

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

 

 

80    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Financial Highlights   (continued)

(For a share outstanding throughout each period)

 

    MEN  
    Year Ended April 30,  
     2019      2018      2017      2016      2015  

Net asset value, beginning of year

  $ 11.46      $ 11.77      $ 12.52      $ 12.27      $ 11.94  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (a)

    0.54        0.59        0.65        0.70        0.71  

Net realized and unrealized gain (loss)

    0.33        (0.26      (0.72      0.28        0.35  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.87        0.33        (0.07      0.98        1.06  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders (b)

             

From net investment income

    (0.57      (0.64      (0.68      (0.73      (0.73

From net realized gain

    (0.00 ) (c)                              
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders . . . . . . . . . . . . . . . . . .

    (0.57      (0.64      (0.68      (0.73      (0.73
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 11.76      $ 11.46      $ 11.77      $ 12.52      $ 12.27  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of year

  $ 10.71      $ 10.48      $ 11.69      $ 12.55      $ 11.67  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders (d)

 

Based on net asset value

    8.43      2.93      (0.51 )%       8.50      9.49
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    7.98      (5.23 )%       (1.42 )%       14.35      10.33
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

 

Total expenses

    2.52      2.06      1.73      1.44      1.44
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.52      2.06      1.73      1.44      1.43
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees, and amortization of offering costs (e)

    0.94      0.92      0.89      0.90      0.91
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.68      4.97      5.29      5.71      5.76
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

 

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

  $ 349,194      $ 340,286      $ 349,037      $ 370,342      $ 362,703  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 142,500      $ 142,500      $ 142,500      $ 142,500      $ 142,500  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of year

  $ 345,049      $ 338,797      $ 344,938      $ 359,889      $ 354,528  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of year (000)

  $ 91,349      $ 87,395      $ 70,823      $ 67,160      $ 76,094  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    22      21      12      10      12
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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)  

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.

 

 

F INANCIAL H IGHLIGHTS      81  


Financial Highlights   (continued)

(For a share outstanding throughout each period)

 

    MHD  
    Year Ended April 30,  
     2019      2018      2017      2016      2015  

Net asset value, beginning of year

  $ 16.41      $ 16.85      $ 17.95      $ 17.59      $ 16.85  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (a)

    0.81        0.88        0.95        1.00        1.03  

Net realized and unrealized gain (loss)

    0.22        (0.39      (1.07      0.42        0.77  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    1.03        0.49        (0.12      1.42        1.80  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders (b)

 

From net investment income

    (0.83      (0.92      (0.98      (1.06      (1.06

From net realized gain

    (0.05      (0.01                     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.88      (0.93      (0.98      (1.06      (1.06
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 16.56      $ 16.41      $ 16.85      $ 17.95      $ 17.59  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of year

  $ 15.92      $ 14.98      $ 16.65      $ 18.14      $ 17.25  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders (c)

 

Based on net asset value

    6.84      3.07      (0.67 )%       8.65      11.22
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    12.51      (4.79 )%       (2.87 )%       11.91      14.80
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

 

Total expenses

    2.47      2.16      1.87      1.53      1.50
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    2.47      2.16      1.87      1.53      1.50
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees, and amortization of offering costs (d)

    1.00      1.01      0.99      0.99      0.99
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.98      5.19      5.42      5.75      5.86
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

 

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

  $ 235,029      $ 232,921      $ 238,684      $ 253,864      $ 248,646  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 83,700      $ 83,700      $ 83,700      $ 83,700      $ 83,700  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of year

  $ 380,799      $ 378,281      $ 385,166      $ 403,302      $ 397,068  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of year (000)

  $ 52,674      $ 63,166      $ 62,233      $ 60,289      $ 56,784  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    17      12      9      7      11
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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)  

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.

 

 

82    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Financial Highlights   (continued)

(For a share outstanding throughout each period)

 

    MUH  
    Year Ended April 30,  
     2019      2018      2017      2016      2015  

Net asset value, beginning of year

  $ 15.11      $ 15.52      $ 16.51      $ 16.21      $ 15.61  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (a)

    0.76        0.80        0.86        0.91        0.93  

Net realized and unrealized gain (loss)

    0.25        (0.35      (0.95      0.33        0.64  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    1.01        0.45        (0.09      1.24        1.57  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders (b)

 

From net investment income

    (0.75      (0.85      (0.90      (0.94      (0.97

From net realized gain

    (0.05      (0.01                     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.80      (0.86      (0.90      (0.94      (0.97
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 15.32      $ 15.11      $ 15.52      $ 16.51      $ 16.21  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of year

  $ 15.05      $ 13.75      $ 15.59      $ 16.23      $ 15.28  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders (c)

 

Based on net asset value

    7.46      3.09      (0.52 )%       8.25      10.64
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    16.00      (6.61 )%       1.65      12.90      9.71
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

 

Total expenses

    2.58      2.12      1.83      1.50      1.48
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.58      2.12      1.83      1.50      1.48
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees, and amortization of offering costs (d)

    1.05      1.02      1.00      1.00      1.00
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    5.05      5.16      5.37      5.66      5.76
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

 

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

  $ 173,628      $ 171,346      $ 175,637      $ 186,553      $ 183,214  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 55,000      $ 55,000      $ 55,000      $ 55,000      $ 55,000  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of year

  $ 415,686      $ 411,538      $ 419,340      $ 439,188      $ 433,117  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of year (000)

  $ 53,409      $ 54,100      $ 47,507      $ 46,103      $ 43,568  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    30      16      10      7      11
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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)  

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.

 

 

F INANCIAL H IGHLIGHTS      83  


Financial Highlights   (continued)

(For a share outstanding throughout each period)

 

    MUS  
    Year Ended April 30,  
     2019      2018      2017      2016      2015  

Net asset value, beginning of year

  $ 13.35      $ 13.95      $ 14.84      $ 14.57      $ 14.18  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (a)

    0.59        0.70        0.75        0.80        0.80  

Net realized and unrealized gain (loss)

    0.19        (0.54      (0.84      0.28        0.40  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.78        0.16        (0.09      1.08        1.20  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income (b)

    (0.62      (0.76      (0.80      (0.81      (0.81
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 13.51      $ 13.35      $ 13.95      $ 14.84      $ 14.57  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of year

  $ 12.01      $ 12.40      $ 13.38      $ 14.31      $ 13.32  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders (c)

 

Based on net asset value

    6.59      1.33      (0.47 )%       8.24      9.20
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    2.02      (1.88 )%       (1.00 )%       14.09      9.91
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

 

Total expenses

    2.60      2.30      1.95      1.60      1.59
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.54      2.24      1.91      1.58      1.57
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and/or paid indirectly and excluding interest expense, fees and amortization of offering costs (d)

    0.98      0.99      0.98      0.99      0.99
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.43      5.08      5.22      5.49      5.49
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

 

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

  $ 175,910      $ 173,818      $ 181,614      $ 193,110      $ 189,594  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 87,000      $ 87,000      $ 87,000      $ 87,000      $ 87,000  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of year

  $ 302,196      $ 299,791      $ 308,751      $ 321,966      $ 317,924  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of year (000)

  $ 23,918      $ 26,238      $ 29,150      $ 24,429      $ 21,937  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    27      21      18      25      11
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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)  

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.

 

 

84    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Financial Highlights   (continued)

(For a share outstanding throughout each period)

 

    MUI  
    Year Ended April 30,  
     2019      2018      2017      2016      2015  

Net asset value, beginning of year

  $ 14.93      $ 15.17      $ 16.16      $ 15.86      $ 15.64  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (a)

    0.56        0.59        0.65        0.73        0.77  

Net realized and unrealized gain (loss)

    0.47        (0.23      (0.83      0.53        0.27  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    1.03        0.36        (0.18      1.26        1.04  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders (b)

 

From net investment income

    (0.53      (0.60      (0.67      (0.78      (0.82

From net realized gain

    (0.03      (0.00 ) (c)        (0.14      (0.18       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.56      (0.60      (0.81      (0.96      (0.82
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 15.40      $ 14.93      $ 15.17      $ 16.16      $ 15.86  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of year

  $ 13.85      $ 13.01      $ 13.96      $ 15.19      $ 14.47  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders (d)

 

Based on net asset value

    7.68      2.76      (0.69 )%       9.04      7.27
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    11.13      (2.69 )%       (2.77 )%       12.27      5.20
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

 

Total expenses

    2.63      2.17      1.90      1.57      1.52
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.63      2.17      1.89      1.57      1.52
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs (e)

    1.01      0.97      0.96      0.94      0.96
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.73      3.87      4.12      4.61      4.82
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

 

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

  $ 589,887      $ 571,769      $ 580,945      $ 618,971      $ 607,440  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 287,100      $ 287,100      $ 287,100      $ 287,100      $ 287,100  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of year

  $ 305,464      $ 299,153      $ 302,349      $ 315,594      $ 311,578  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of year (000)

  $ 93,421      $ 79,136      $ 58,337      $ 63,102      $ 52,932  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    24      34      12      20      18
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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)  

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.

 

 

F INANCIAL H IGHLIGHTS      85  


Financial Highlights   (continued)

(For a share outstanding throughout each period)

 

    MVT  
    Year Ended April 30,  
     2019      2018      2017      2016      2015  

Net asset value, beginning of year

  $ 14.75      $ 15.19      $ 16.17      $ 16.01      $ 15.45  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (a)

    0.74        0.83        0.91        0.98        0.99  

Net realized and unrealized gain (loss)

    0.20        (0.41      (0.95      0.18        0.61  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.94        0.42        (0.04      1.16        1.60  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders (b)

 

From net investment income

    (0.76      (0.86      (0.94      (1.00      (1.04

From net realized gain

    (0.06                            
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.82      (0.86      (0.94      (1.00      (1.04
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 14.87      $ 14.75      $ 15.19      $ 16.17      $ 16.01  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of year

  $ 14.29      $ 14.05      $ 15.45      $ 17.38      $ 16.26  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders (c)

 

Based on net asset value

    6.83      2.79      (0.34 )%       7.61      10.65
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    7.78      (3.74 )%       (5.68 )%       13.88      14.52
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

 

Total expenses

    2.45      2.11      1.88      1.52      1.50
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.45      2.11      1.87      1.52      1.50
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs (d)

    0.91      0.91      0.92      0.92      0.92
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    5.09      5.44      5.78      6.15      6.17
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

 

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

  $ 317,175      $ 314,261      $ 321,939      $ 340,753      $ 336,320  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 140,000      $ 140,000      $ 140,000      $ 140,000      $ 140,000  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of year

  $ 326,553      $ 324,472      $ 329,956      $ 343,395      $ 340,229  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of year (000)

  $ 47,982      $ 61,343      $ 60,575      $ 69,195      $ 66,439  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    25      11      9      6      10
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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)  

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.

 

 

86    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Notes to Financial Statements

 

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 non-index fixed-income mutual funds and all BlackRock-advised closed-end funds referred to as the BlackRock Fixed-Income 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 executed (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 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 funds in the BlackRock Fixed-Income Complex 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 funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund, as 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 continues to evaluate 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.

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.

 

 

N OTES TO F INANCIAL S TATEMENTS      87  


Notes to Financial Statements   (continued)

 

 

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 each 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.

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 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.

 

 

88    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Notes to Financial Statements   (continued)

 

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

  $ 1,137,048      $ 313,388      $ 130,503      $ 1,580,939  

MEN

    1,426,853        388,176        132,851        1,947,880  

MHD

    901,571        250,750        94,002        1,246,323  

MUH

    864,060        241,361        85,249        1,190,670  

MUS

    352,541        102,340        37,390        492,271  

MUI

    1,431,604        431,318        111,472        1,974,394  

MVT

    872,718        239,145        96,087        1,207,950  

For the year ended April 30, 2019, 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

  $ 120,421,097      $ 71,659,281        2.32% — 2.50    $ 72,745,522        2.17

MEN

    157,978,964        91,348,628        2.26 — 2.65        90,453,065        2.15  

MHD

    88,406,503        52,673,965        2.26 — 2.48        58,450,386        2.13  

MUH

    90,223,779        53,408,501        2.26 — 2.48        55,967,207        2.12  

MUS

    44,193,345        23,917,620        2.30 — 2.48        22,947,696        2.14  

MUI

    158,350,954        93,420,751        2.30 — 2.38        93,636,179        2.11  

MVT

    82,646,701        47,982,013        2.26 — 2.48        56,455,643        2.14  

 

  (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

 

 

 

N OTES TO F INANCIAL S TATEMENTS      89  


Notes to Financial Statements   (continued)

 

  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 April 30, 2019, 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 April 30, 2019.

 

For the year ended April 30, 2019, the following table is a summary of each Fund’s Loan for TOB Trust Certificates:

 

    

Loans

Outstanding
at Period End

    

Range of

Interest Rates
on Loans at

Period End

     Average
Loans
Outstanding
     Daily Weighted
Average Rate
of Interest and
Other Expenses
on Loans
 

MUA

  $           $ 49,851        0.78

MHD

                  1,392        0.78  

MUH

                  27,470        0.68  

MVT

                  2,039        0.78  

 

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) and 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

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, Inc. (“BlackRock”), to provide investment advisory and administrative 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

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 stock (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Fund’s NAV.

 

 

90    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Notes to Financial Statements   (continued)

 

Waiver: 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 year ended April 30, 2019 the waiver was $94,126.

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 and/or reimbursed by the Manager in the Statements of Operations. For the year ended April 30, 2019, the amounts waived were as follows:

 

     MUA      MEN      MHD      MUH      MUS      MUI      MVT  

Amounts waived

  $ 2,715      $ 1,501      $ 3,099      $ 714      $ 2,808      $ 2,775      $ 6,799  

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 year ended April 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this agreement.

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 directors. For the year ended April 30, 2019, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

 

     Purchases      Sales      Net Realized
Gain (Loss)
 

MHD

  $      $ 1,755,194      $ (130,082

MVT

           2,605,194        (193,504

 

7.

PURCHASES AND SALES

For the year ended April 30, 2019, purchases and sales of investments, excluding short-term securities, were as follows:

 

     MUA      MEN      MHD      MUH      MUS      MUI      MVT  

Purchases

  $ 109,186,417      $ 127,723,561      $ 61,626,579      $ 83,422,601      $ 76,057,831      $ 244,801,290      $ 123,379,515  

Sales

    106,935,035        135,280,566        84,651,296        88,666,495        79,249,261        229,064,953        149,732,098  

 

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, 2019. 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, 2019, 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’s financial statements.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of period end, the following permanent differences attributable to non-deductible expenses and the expiration of capital loss carryforwards were reclassified to the following accounts:

 

     MUA     MEN  

Paid-in capital

  $ (1,332,214   $ (9,972

Accumulated earning

    1,332,214       9,972  

 

 

N OTES TO F INANCIAL S TATEMENTS      91  


Notes to Financial Statements   (continued)

 

The tax character of distributions paid was as follows:

 

     MUA      MEN      MHD      MUH      MUS      MUI      MVT  

Tax-exempt income (a)

                   

04/30/2019

  $ 23,551,751      $ 20,223,865      $ 13,771,349      $ 9,829,684      $ 10,264,197      $ 27,386,865      $ 19,429,884  

04/30/2018

    24,283,507        21,572,138        14,704,730        10,689,353        11,690,466        28,655,443        21,067,211  

Ordinary income (b)

                   

04/30/2019

    157,714        5,562        283,540        261,013        1,553        21,651        157,896  

04/30/2018

    120,268        170,131        92,030        67,697               67,384        59,503  

Long-term capital gains (c)

                   

04/30/2019

           172,797        588,905        436,963               1,680,224        1,283,578  

04/30/2018

                  139,787        60,571               70,580         
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

                   

04/30/2019

  $ 23,709,465      $ 20,402,224      $ 14,643,794      $ 10,527,660      $ 10,265,750      $ 29,088,740      $ 20,871,358  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

04/30/2018

  $ 24,403,775      $ 21,742,269      $ 14,936,547      $ 10,817,621      $ 11,690,466      $ 28,793,407      $ 21,126,714  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  

The Funds designate these amounts paid during the fiscal year ended April 30, 2019, as exempt-interest dividends.

 
  (b)  

Ordinary income consists primarily of taxable income recognized from market discount and net short-term capital gains. Additionally, all ordinary income distributions are comprised of interest related dividends for non-U.S. residents and are eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.

 
  (c)  

The Funds designate these amounts paid during the fiscal year ended April 30, 2019 as 20% rate long-term capital gain dividends.

 

As of period end, the tax components of accumulated earnings were as follows:

 

     MUA     MEN     MHD     MUH     MUS     MUI     MVT  

Undistributed tax-exempt income

  $ 403,640     $ 547,612     $ 113,556     $ 31,316     $ 453,615     $ 1,840,148     $ 119,186  

Undistributed ordinary income

    3,834       4,051       1,617       15,595       2,724       3,124       30,463  

Non-expiring capital loss carryforwards (a)

                            (7,833,477     (1,809,176      

Net unrealized gains (b)

    30,364,714       39,116,923       24,410,057       18,314,445       15,152,575       46,399,667       28,105,430  

Qualified late-year losses (c)

    (103,390     (2,131,026     (1,156,805     (709,118                 (807,001
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 30,668,798     $ 37,537,560     $ 23,368,425     $ 17,652,238     $ 7,775,437     $ 46,433,763     $ 27,448,078  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a)  

Amounts available to offset future realized capital gains.

 
  (b)  

The differences between book-basis and tax-basis net unrealized gains were attributable primarily to the tax deferral of losses on wash sales and straddles, amortization and accretion methods of premiums and discounts on fixed income securities, the accrual of income on securities in default, the realization for tax purposes of unrealized gains/losses on certain futures contracts, the treatment of residual interests in tender option bond trusts and the deferral of compensation to Directors.

 
  (c)  

The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

 

During the year ended April 30, 2019, the Funds listed below utilized the following amounts of their respective capital loss carryforward:

 

MUA

  $ 3,210,013  

MEN

    76,432  

As of April 30, 2019, 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

  $ 473,221,821     $ 447,328,098     $ 290,200,702     $ 207,432,610     $ 245,388,324     $ 818,169,972     $ 422,468,153  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross unrealized appreciation

  $ 37,288,006     $ 39,800,479     $ 24,476,122     $ 18,455,194     $ 15,231,774     $ 46,884,691     $ 28,294,740  

Gross unrealized depreciation

    (6,865,730     (606,529     (66,065     (140,749     (79,199     (166,797     (101,832
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net unrealized appreciation

  $ 30,422,276     $ 39,193,950     $ 24,410,057     $ 18,314,445     $ 15,152,575     $ 46,717,894     $ 28,192,908  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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.

 

 

92    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Notes to Financial Statements   (continued)

 

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.

Concentration Risk: MUI invests a substantial amount of its assets in issuers located in a single state or limited number of states. This may subject the Fund to the risk that economic, political or social issues impacting a particular state or group of states could have an adverse and disproportionate impact on the income from, or the value or liquidity of, the Fund’s portfolio. Investment percentages in specific states or U.S. territories are presented in the Schedule of Investments.

As of period end, MHD, 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.

 

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 of MEN’s, MHD’s, MUH’s, MUS’s, MUI’s and MVT’s Preferred Shares outstanding is $0.10. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders.

Common Shares

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

 

Year ended April 30,   MUA      MEN      MHD      MUH      MUS      MVT  

2019

    24,627                                    18,940  

2018

    86,656        37,435        24,051        18,533        2,901        111,960  

For the year ended April 30, 2019 and for the year ended April 30, 2018, shares issued and outstanding remained constant for MUI.

 

 

N OTES TO F INANCIAL S TATEMENTS      93  


Notes to Financial Statements   (continued)

 

On November 15, 2018, the Board authorized each Fund to participate in an open market share repurchase program (the “Repurchase Program”). Under the Repurchase 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. For the year ended April 30, 2019, the Funds did not repurchase any shares.

Preferred Shares

A Fund’s Preferred Shares rank prior to its Common Shares as to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of the 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 the Fund’s 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 its Preferred Shares or repurchasing such shares if the 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.

Holders of Preferred Shares have voting rights equal to the voting rights of holders of Common Shares (one vote per share) and vote together with holders of Common Shares (one vote per share) as a single class on certain matters. Holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members of 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 of 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. As of period end, the fee agreement between MEN and the liquidity provider is scheduled to expire on July 4, 2019 unless renewed or terminated in advance.

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 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 assigned ratings:

 

    

Long-Term Moody’s

Rating

    

Long-Term Fitch

Rating

 

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
04/30/2019
 

MEN

    06/21/12        07/04/19  

 

 

94    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Notes to Financial Statements   (continued)

 

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 as described above, 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 year ended April 30, 2019, the annualized dividend rate for the VRDP Shares was 2.38%

During the year ended April 30, 2019, 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 its VMTP Shares for sale under the Securities Act under certain circumstances.

As of period end, the VMTP Shares outstanding and assigned long-term ratings were as follows:

 

     Issue
Date
     Shares
Issued
     Aggregate
Principal
     Term
Redemption
Date
     Moody’s      Fitch  

MHD

    12/16/11        837      $ 83,700,000        07/02/20        Aa1        AAA  

MUH

    12/16/11        550        55,000,000        07/02/20        Aa1        AAA  

MUS

    12/16/11        870        87,000,000        07/02/20        Aa1        AAA  

MUI

    12/07/12        2,871        287,100,000        07/02/20        Aa1        AAA  

MVT

    12/16/11        1,400        140,000,000        07/02/20        Aa1        AAA  

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. In April, 2019, the term redemption date for VMTP Shares was extended until July 2, 2020.There is no assurance that a term will be extended further or that any 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 its 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 the SIFMA Municipal Swap Index or to a percentage of the one-month LIBOR rate, as set forth in the VMTP Shares governing instrument. 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.

The dividend rate on VMTP Shares is subject to a step-up spread if the VMTP Fund fails 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 year ended April 30, 2019, the average annualized dividend rates for the VMTP Shares were as follows:

 

     MHD      MUH      MUS      MUI      MVT  

Rate

    2.56      2.57      2.52      2.56      2.56

For the year ended April 30, 2019, VMTP Shares issued and outstanding of each Fund remained constant.

 

 

N OTES TO F INANCIAL S TATEMENTS      95  


Notes to Financial Statements   (continued)

 

Offering Costs: MEN, MHD, MUH, MUS, MUI and MVT 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 MEN 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.

Financial Reporting: The VRDP and VRDP 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
 

MEN

  $ 3,391,325      $ 9,972  

MHD

    2,145,652         

MUH

    1,413,107         

MUS

    2,194,419         

MUI

    7,337,763         

MVT

    3,589,456         

 

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 the 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  

 

 

96    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Notes to Financial Statements   (continued)

 

 

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

  $ 0.054500      $ 0.054500                     $  

MEN

    0.044000        0.044000         VRDP        W-7        317,599  

MHD

    0.067500        0.067500         VMTP        W-7        186,884  

MUH

    0.061500        0.061500         VMTP        W-7        122,803  

MUS

    0.044500        0.044500         VMTP        W-7        194,252  

MUI

    0.044500        0.044500         VMTP        W-7        641,033  

MVT

    0.059500        0.059500               VMTP        W-7        312,590  

 

  (a)  

Net investment income dividend paid on June 3, 2019 to Common Shareholders of record on May 15, 2019.

 
  (b)  

Net investment income dividend declared on June 3, 2019, payable to Common Shareholders of record on June 14, 2019.

 
  (c)  

Dividends declared for period May 1, 2019 to May 31, 2019.

 

 

 

N OTES TO F INANCIAL S TATEMENTS      97  


Report of Independent Registered Public Accounting Firm

 

To the Shareholders and Board of Directors of BlackRock MuniAssets Fund, Inc., BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc., BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc.:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock MuniAssets Fund, Inc., BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc., BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc. (the “Funds”), including the schedules of investments, as of April 30, 2019, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of April 30, 2019, and the results of their operations and cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Boston, Massachusetts

June 21, 2019

We have served as the auditor of one or more BlackRock investment companies since 1992.

 

 

98    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Automatic Dividend Reinvestment Plan

 

Pursuant to each Fund’s Dividend Reinvestment Plan (the “Reinvestment Plan”), Common Shareholders are automatically enrolled to have all distributions of dividends and capital gains and other distributions reinvested by Computershare Trust Company, N.A. (the “Reinvestment Plan Agent”) in the respective Fund’s Common Shares pursuant to the Reinvestment Plan. Shareholders who do not participate in the Reinvestment Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street name or other nominee name, then to the nominee) by the Reinvestment Plan Agent, which serves as agent for the shareholders in administering the Reinvestment Plan.

After the Funds declare a dividend or determine to make a capital gain or other distribution, the Reinvestment Plan Agent will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Funds (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market or on the Fund’s primary exchange (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market premium”), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares acquired on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the dividend payment date, the dollar amount of the dividend will be divided by 95% of the market price on the dividend payment date. If, on the dividend payment date, the NAV is greater than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend amount in open-market purchases, or if the market discount shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any un-invested portion in newly issued shares. Investments in newly issued shares made in this manner would be made pursuant to the same process described above and the date of issue for such newly issued shares will substitute for the dividend payment date.

You may elect not to participate in the Reinvestment Plan and to receive all dividends in cash by contacting the Reinvestment Plan Agent, at the address set forth below.

Participation in the Reinvestment Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend record date. Additionally, the Reinvestment Plan Agent seeks to process notices received after the record date but prior to the payable date and such notices often will become effective by the payable date. Where late notices are not processed by the applicable payable date, such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Reinvestment Plan Agent’s fees for the handling of the reinvestment of distributions will be paid by each Fund. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Reinvestment Plan Agent’s open-market purchases in connection with the reinvestment of all distributions. The automatic reinvestment of all distributions will not relieve participants of any U.S. federal, state or local income tax that may be payable on such dividends or distributions.

Each Fund reserves the right to amend or terminate the Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan; however, each Fund reserves the right to amend the Reinvestment Plan to include a service charge payable by the participants. Participants in MEN and MUI that request a sale of shares are subject to a $2.50 sales fee and a $0.15 per share fee. Per share fees include any applicable brokerage commissions the Reinvestment Plan Agent is required to pay. Participants in MUA, MHD, MUH, MUS and MVT that request a sale of shares are subject to a $0.02 per share sold brokerage commission. All correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at http://www.computershare.com/blackrock, or in writing to Computershare, P.O. Box 505000, Louisville, KY 40233, Telephone: (800) 699-1236. Overnight correspondence should be directed to the Reinvestment Plan Agent at Computershare, 462 South 4 th Street, Suite 1600, Louisville, KY 40202.

 

 

A UTOMATIC D IVIDEND R EINVESTMENT P LAN      99  


Director and Officer Information

 

Independent Directors  (a)
         
Name
Year of Birth
 (b)
   Position(s) Held
(Length of Service)
 (c)
   Principal Occupation(s) During Past Five Years    Number of BlackRock-Advised
Registered Investment Companies
(“RICs”)  Consisting of
Investment Portfolios
(“Portfolios”) Overseen
 (d)
   Public Company and Other
Investment Company
Directorships Held During
Past Five Years

Richard E. Cavanagh

1946

   Co-Chair of the Board and Director
(Since 2007)
   Director, The Guardian Life Insurance Company of America since 1998; Board Chair, Volunteers of America (a not-for-profit organization) from 2015 to 2018 (board member since 2009); Director, Arch Chemicals (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007 and Executive Dean from 1987 to 1995; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007.    88 RICs consisting of 112 Portfolios    None

Karen P. Robards

1950

   Co-Chair of the Board and Director
(Since 2007)
   Principal of Robards & Company, LLC (consulting and private investing) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Enable Injections, LLC (medical devices) since 2019; Investment Banker at Morgan Stanley from 1976 to 1987.    88 RICs consisting of 112 Portfolios    Greenhill & Co., Inc.; AtriCure, Inc. (medical devices) from 2000 until 2017

Michael J. Castellano

1946

   Director
(Since 2011)
   Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) from 2009 to June 2015 and since 2017; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012; Director, CircleBlack Inc. (financial technology company) since 2015.    88 RICs consisting of 112 Portfolios    None

Cynthia L. Egan

1955

   Director
(Since 2016)
   Advisor, U.S. Department of the Treasury from 2014 to 2015; President, Retirement Plan Services, for T. Rowe Price Group, Inc. from 2007 to 2012; executive positions within Fidelity Investments from 1989 to 2007.    88 RICs consisting of 112 Portfolios    Unum (insurance); The Hanover Insurance Group (insurance); Envestnet (investment platform) from 2013 until 2016

Frank J. Fabozzi

1948

   Director
(Since 2007)
   Editor of The Journal of Portfolio Management since 1986; Professor of Finance, EDHEC Business School (France) since 2011; Visiting Professor, Princeton University for the 2013 to 2014 academic year and Spring 2017 semester; Professor in the Practice of Finance, Yale University School of Management from 1994 to 2011 and currently a Teaching Fellow in Yale’s Executive Programs; Board Member, BlackRock Equity-Liquidity Funds from 2014 to 2016; affiliated professor Karlsruhe Institute of Technology from 2008 to 2011.    88 RICs consisting of 112 Portfolios    None

Henry Gabbay

1947

   Director
(Since 2019)
   Board Member, BlackRock Equity-Bond Board from 2007 to 2018; Board Member, BlackRock Equity-Liquidity and BlackRock Closed-End Fund Boards from 2007 through 2014; Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Allocation Target Shares (formerly, BlackRock Bond Allocation Target Shares) from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.    88 RICs consisting of 112 Portfolios    None

 

 

100    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Director and Officer Information   (continued)

 

Independent Directors  (a) (continued)
         
Name
Year of Birth
 (b)
   Position(s) Held
(Length of Service)
 (c)
   Principal Occupation(s) During Past Five Years    Number of BlackRock-Advised
Registered Investment Companies
(“RICs”)  Consisting of
Investment Portfolios
(“Portfolios”) Overseen
 (d)
   Public Company and Other
Investment Company
Directorships Held During
Past Five Years

R. Glenn Hubbard

1958

   Director
(Since 2007)
   Dean, Columbia Business School since 2004; Faculty member, Columbia Business School since 1988.    88 RICs consisting of 112 Portfolios    ADP (data and information services); Metropolitan Life Insurance Company (insurance); KKR Financial Corporation (finance) from 2004 until 2014

W. Carl Kester

1951

   Director
(Since 2007)
   George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981.    88 RICs consisting of 112 Portfolios    None

Catherine A. Lynch

1961

   Director
(Since 2016)
   Chief Executive Officer, Chief Investment Officer and various other positions, National Railroad Retirement Investment Trust from 2003 to 2016; Associate Vice President for Treasury Management, The George Washington University from 1999 to 2003; Assistant Treasurer, Episcopal Church of America from 1995 to 1999.    88 RICs consisting of 112 Portfolios    None
Interested Directors  (a)(d)
         
Name
Year of Birth
 (b)
   Position(s) Held
(Length of Service)
 (c)
   Principal Occupation(s) During Past Five Years    Number of BlackRock-Advised
Registered Investment Companies
(“RICs”)  Consisting of
Investment Portfolios
(“Portfolios”) Overseen
 (d)
   Public Company and Other
Investment Company
Directorships Held During
Past Five Years

Robert Fairbairn

1965

   Director
(Since 2018)
   Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares ® businesses from 2012 to 2016.    126 RICs consisting of 295 Portfolios    None

John M. Perlowski

1964

   Director
(Since 2015); President and Chief Executive Officer
(Since 2010)
   Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.    126 RICs consisting of 295 Portfolios    None

(a)  The address of each Director is c/o BlackRock, Inc., 55 East 52 nd Street, New York, New York 10055.

(b)  Each Independent Director holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Funds’ by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Directors who are “interested persons,” as defined in the Investment Company Act serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Funds’ by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Directors on a case-by-case basis, as appropriate.

(c)  Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Certain Independent Directors first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998. Mr. Gabbay became a member of the boards of the open-end funds in the Fixed-Income Complex in 2007.

(d)  Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Funds based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex.

 

 

D IRECTOR AND O FFICER I NFORMATION      101  


Director and Officer Information   (continued)

 

Officers Who Are Not Directors  (a)
     
Name
Year of Birth
 (b)
   Position(s) Held
(Length of Service)
   Principal Occupation(s) During Past Five Years

Jonathan Diorio

1980

   Vice President
(Since 2015)
   Managing Director of BlackRock, Inc. since 2015; Director of BlackRock, Inc. from 2011 to 2015.

Neal J. Andrews

1966

   Chief Financial Officer
(Since 2007)
   Chief Financial Officer of the iShares ® exchange traded funds since 2019; Managing Director of BlackRock, Inc. since 2006.

Jay M. Fife

1970

   Treasurer
(Since 2007)
   Managing Director of BlackRock, Inc. since 2007.

Charles Park

1967

   Chief Compliance Officer
(Since 2014)
   Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares ® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares ® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.

Janey Ahn

1975

   Secretary
(Since 2012)
   Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.

(a)  The address of each Officer is c/o BlackRock, Inc., 55 East 52 nd Street, New York, New York 10055.

(b)  Officers of the Funds serve at the pleasure of the Board.

 

Effective January 1, 2019, Richard E. Cavanagh and Karen P. Robards were appointed as a Co-Chair of the Board. Prior to January 1, 2019, Mr. Cavanagh served as Chair of the Board and Ms. Robards served as Vice Chair of the Board.

 

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

Willkie Farr & Gallagher LLP

New York, NY 10019

 

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

 

 

(a)  

For MEN.

 

 

102    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


Additional Information

 

Fund Certification

The 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 as accumulated earnings (loss) in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

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 the 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.

 

 

A DDITIONAL I NFORMATION      103  


Additional Information   (continued)

 

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.

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.

 

 

104    2019 B LACK R OCK A NNUAL R EPORT TO S HAREHOLDERS


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
 

 

 

G LOSSARY OF T ERMS U SED IN THIS R EPORT      105  


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

 

CEMUNI7-4/19-AR    LOGO


Item 2 –

Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-882-0052, option 4.

 

Item 3 –

Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Michael Castellano

Frank J. Fabozzi

Henry Gabbay

Catherine A. Lynch

Karen P. Robards

The registrant’s board of directors has determined that Karen P. Robards qualifies as an audit committee financial expert pursuant to Item 3(c)(4) of Form N-CSR.

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

 

Item 4 –

Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

 

      (a) Audit Fees    (b) Audit-Related Fees 1    (c) Tax Fees 2    (d) All Other Fees
Entity Name    Current
Fiscal Year
End
   Previous
Fiscal Year
End
   Current
Fiscal Year
End
   Previous
Fiscal Year
End
   Current
Fiscal Year
End
   Previous
Fiscal Year
End
   Current
Fiscal Year
End
   Previous
Fiscal Year
End
BlackRock MuniAssets Fund, Inc.    $31,110    $31,110    $0    $0    $12,400    $12,400    $0    $0

 

2


The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

 

     Current Fiscal Year End    Previous Fiscal Year End

(b) Audit-Related Fees 1

   $0    $0

(c) Tax Fees 2

   $0    $0

(d) All Other Fees 3

   $2,050,500    $2,274,000

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3 Non-audit fees of $2,050,500 and $2,274000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

 

3


(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

 

    Entity Name    Current Fiscal
Year End
   Previous Fiscal
Year End
  BlackRock MuniAssets Fund, Inc.    $12,400    $12,400

Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored or advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

 

Current Fiscal

Year End

  

Previous Fiscal

Year End

$2,050,500    $2,274,000

These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

Item 5 –

Audit Committee of Listed Registrants

 

  (a)

The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

Michael Castellano

Frank J. Fabozzi

Henry Gabbay

Catherine A. Lynch

Karen P. Robards

 

  (b)

Not Applicable

 

4


Item 6 –

Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of directors has delegated the voting of proxies for the Fund’s portfolio securities to the Investment Adviser pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at http://www.sec.gov .

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies

 

  (a)(1)

As of the date of filing this Report:

The registrant is managed by a team of investment professionals comprised of Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock, and Walter O’Connor, Managing Director at BlackRock. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and the selection of its investments. Messrs. Jaeckel and O’Connor have both been members of the registrant’s portfolio management team since 2006.

 

    Portfolio Manager    Biography
 

Theodore R. Jaeckel, Jr.

   Managing Director of BlackRock since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2005 to 2006; Director of MLIM from 1997 to 2005.
 

Walter O’Connor

   Managing Director of BlackRock since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.

 

5


  (a)(2)

As of April 30, 2019:

 

     

(ii) Number of Other Accounts Managed

and Assets by Account Type

  

(iii) Number of Other Accounts and

Assets for Which Advisory Fee is

Performance-Based

(i) Name of

Portfolio Manager

  

Other

Registered

Investment

Companies

  

Other Pooled

Investment

Vehicles

  

Other

Accounts

  

Other

Registered

Investment

Companies

  

Other Pooled

Investment

Vehicles

  

Other

Accounts

Theodore R. Jaeckel, Jr.

  

33

  

0

  

0

  

0

  

0

  

0

    

$27.64 Billion

 

  

$0

  

$0

  

$0

  

$0

  

$0

Walter O’Connor

  

29

  

0

  

0

  

0

  

0

  

0

    

$24.87 Billion

 

  

$0

  

$0

  

$0

  

$0

  

$0

(iv) Potential Material Conflicts of Interest

BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, Inc., its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, Inc., or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock, Inc.’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock, Inc. or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. It should also be noted that a portfolio manager may be managing certain hedge fund and/or long only accounts, or may be part of a team managing certain hedge fund and/or long only accounts, subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. Currently, the portfolio managers of this fund are not entitled to receive a portion of incentive fees of other accounts.

 

6


As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock, Inc. has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.

(a)(3) As of April 30, 2019:

Portfolio Manager Compensation Overview

The discussion below describes the portfolio managers’ compensation as of April 30, 2019.

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.

Base Compensation. Generally, portfolio managers receive base compensation based on their position with the firm.

Discretionary Incentive Compensation

Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on the performance of the Fund and other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are: a combination of market-based indices (e.g., Standard & Poor’s Municipal Bond Index), certain customized indices and certain fund industry peer groups.

 

7


Distribution of Discretionary Incentive Compensation. Discretionary incentive compensation is distributed to portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards that notionally track the return of certain BlackRock investment products.

Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio managers of this Fund have deferred BlackRock, Inc. stock awards.

For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage, which provides direct alignment of portfolio manager discretionary incentive compensation with investment product results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only portfolio managers who manage specified products and whose total compensation is above a specified threshold are eligible to participate in the deferred cash award program.

Other Compensation Benefits. In addition to base salary and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock, Inc. employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit ($280,000 for 2019). The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock, Inc. contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to participate in these plans.

 

8


(a)(4) Beneficial Ownership of Securities – As of April 30, 2019:

 

Portfolio Manager    Dollar Range of Equity Securities
of the Fund Beneficially Owned

Theodore R. Jaeckel, Jr.

   $50,001-$100,000

Walter O’Connor

   None

(b) Not Applicable

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

 

Period                                 

 

(a) Total

Number of   

Shares
Purchased

 

(b) Average

Price Paid per   

Share

 

(c) Total Number of

Shares Purchased as Part   

of Publicly Announced
Plans or Programs

 

(d) Maximum Number of

Shares that May Yet Be

Purchased Under the Plans   

or Programs 1

November 1 – 30, 2018

  0   0   0   0

December 1 – 31, 2018

  0   0   0   1,800,385

November 1- 30, 2018

  0   0   0   1,800,385

December 1 – 31, 2018

  0   0   0   1,800,385

January 1 – 31, 2019

  0   0   0   1,800,385

February 1 – 28, 2019

  0   0   0   1,800,385

Total:

  0   0   0   1,800,385

1 The Fund announced an open market share repurchase program on November 15, 2018 pursuant to which the Fund was authorized to repurchase, through November 30, 2019, up to 5% of its common shares based on common shares outstanding on November 30, 2018, in open market transactions, subject to certain conditions.

 

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 last 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

 

9


Item 13 –

Exhibits attached hereto

(a)(1) – Code of Ethics – See Item 2

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(a)(4) – Not Applicable

(b) – Certifications – Attached hereto

 

10


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: July 8, 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: July 8, 2019

 

By:     /s/ Neal J. Andrews                                
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock MuniAssets Fund, Inc.

Date: July 8, 2019

 

11

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

 

 

I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock MuniAssets Fund, Inc., certify that:

1.          I have reviewed this report on Form N-CSR of BlackRock MuniAssets Fund, Inc.;

2.          Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.          Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.          The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)          designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)          designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)          evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)          disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.          The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)          all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)          any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 8, 2019

 

/s/ John M. Perlowski                

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock MuniAssets Fund, Inc.


EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

 

 

I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock MuniAssets Fund, Inc., certify that:

1.          I have reviewed this report on Form N-CSR of BlackRock MuniAssets Fund, Inc.;

2.          Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.          Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.          The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)          designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)          designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)          evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)          disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.          The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)          all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)          any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 8, 2019

 

/s/ Neal J. Andrews                

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock MuniAssets Fund, Inc.

Exhibit 99.906CERT

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and

Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock MuniAssets Fund, Inc. (the “Registrant”), hereby certifies, to the best of his knowledge, that the Registrant’s Report on Form N-CSR for the period ended April 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: July 8, 2019

 

/s/ John M. Perlowski          

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock MuniAssets Fund, Inc.

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock MuniAssets Fund, Inc. (the “Registrant”), hereby certifies, to the best of his knowledge, that the Registrant’s Report on Form N-CSR for the period ended April 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: July 8, 2019

 

/s/ Neal J. Andrews            

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock MuniAssets Fund, Inc.

This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission .

LOGO

Closed-End Fund Proxy Voting Policy September 21, 2015 BLACKROCK® U.S. Registered Funds Closed-End Fund Proxy Voting Policy Procedures Governing Delegation of Proxy Voting to Fund Adviser September 21, 2015


LOGO

 

 

The Boards of Trustees/Directors (“Directors”) of the closed-end funds advised by BlackRock Advisors, LLC (“BlackRock”) (the “Funds”) have the responsibility for the oversight of voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of the Funds and their shareholders to delegate that responsibility to BlackRock as part of BlackRock’s authority to manage, acquire and dispose of account assets, all as contemplated by the Funds’ respective investment management agreements.

BlackRock has adopted guidelines and procedures (together and as from time to time amended, the “BlackRock Proxy Voting Guidelines”) governing proxy voting by accounts managed by BlackRock.

BlackRock will cast votes on behalf of each of the Funds on specific proxy issues in respect of securities held by each such Fund in accordance with the BlackRock Proxy Voting Guidelines; provided that in the case securities held by the Funds of closed-end funds that have or propose to adopt classified boards, BlackRock will typically (a) vote in favor of proposals to adopt classification and against proposals to eliminate classification, and (b) not vote against directors as a result of their adoption of a classified board structure.

BlackRock will report on an annual basis to the Directors on (1) all proxy votes that BlackRock has made on behalf of the Funds in the preceding year together with a certification from the Funds’ Chief Compliance Officer that all votes were in accordance with the BlackRock Proxy Voting Guidelines, and (2) any changes to the BlackRock Proxy Voting Guidelines that have not previously been reported.

 

  Closed-End Fund Proxy Voting Policy     
  September 21, 2015    Page 1 of 1

LOGO

BLACKROCK Global corporate governance & engagement principles June 2014


LOGO

 

 

Contents

 

Introduction to BlackRock

   2

Philosophy on corporate governance

   2

Corporate governance, engagement and voting

   3

- Boards and directors

   4

- Auditors and audit-related issues

   5

- Capital structure, mergers, asset sales and other special transactions

   6

- Remuneration and benefits

   6

- Social, ethical, and environmental issues

   7

- General corporate governance matters

   7

BlackRock’s oversight of its corporate governance activities

   8

- Oversight

   8

- Vote execution

   8

- Conflicts management

   9

- Voting guidelines

   10

- Reporting

   11

 

1   2014 Global corporate governance and engagement principles    LOGO


LOGO

 

 

Introduction to BlackRock

BlackRock is the world’s preeminent asset management firm and a premier provider of global investment management, risk management and advisory services to institutional and individual clients around the world. BlackRock offers a wide range of investment strategies and product structures to meet clients’ needs, including individual and institutional separate accounts, mutual funds, closed-end funds, and other pooled investment vehicles and the industry-leading iShares exchange traded funds. Through BlackRock Solutions ® , we offer risk management, strategic advisory and enterprise investment system services to a broad base of clients.

Philosophy on corporate governance

BlackRock’s corporate governance program is focused on protecting and enhancing the economic value of the companies in which it invests on behalf of clients. We do this through engagement with boards and management of investee companies and, for those clients who have given us authority, through voting at shareholder meetings.

We believe that there are certain fundamental rights attached to share ownership. Companies and their boards should be accountable to shareholders and structured with appropriate checks and balances to ensure that they operate in shareholders’ interests. Effective voting rights are central to the rights of ownership and there should be one vote for one share. Shareholders should have the right to elect, remove and nominate directors, approve the appointment of the auditor and to amend the corporate charter or by-laws. Shareholders should be able to vote on matters that are material to the protection of their investment including but not limited to changes to the purpose of the business, dilution levels and pre-emptive rights, the distribution of income and the capital structure. In order to exercise these rights effectively, we believe shareholders have the right to sufficient and timely information to be able to take an informed view of the proposals, and of the performance of the company and management.

Our focus is on the board of directors, as the agent of shareholders, which should set the company’s strategic aims within a framework of prudent and effective controls which enables risk to be assessed and managed. The board should provide direction and leadership to the management and oversee management’s performance. Our starting position is to be supportive of boards in their oversight efforts on our behalf and we would generally expect to support the items of business they put to a vote at shareholder meetings. Votes cast against or withheld from resolutions proposed by the board are a signal that we are concerned that the directors or management have either not acted in the interests of shareholders or have not responded adequately to shareholder concerns regarding strategy or performance.

These principles set out our approach to engaging with companies, provide guidance on our position on corporate governance and outline how our views might be reflected in our voting decisions. Corporate governance practices vary internationally and our expectations in relation to individual companies are based on the legal and regulatory framework of each market. However, as noted above, we do believe that there are some overarching principles of corporate governance that apply globally. We assess voting matters on a case-by-case basis and in light of each company’s unique circumstances. We are interested to understand from the company’s reporting its approach to corporate governance, particularly where it is different from the usual market practice, and how it benefits shareholders.

 

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BlackRock also believes that shareholders have responsibilities in relation to monitoring and providing feedback to companies, sometimes known as stewardship. These ownership responsibilities include, in our view, engaging with management or board members on corporate governance matters, voting proxies in the best long-term economic interests of shareholders and engaging with regulatory bodies to ensure a sound policy framework consistent with promoting long-term shareholder value creation. Institutional shareholders also have responsibilities to their clients to have appropriate resources and oversight structures. Our own approach to oversight in relation to our corporate governance activities is set out in the section below titled “BlackRock’s oversight of its corporate governance activities”.

Corporate governance, engagement and voting

We recognize that accepted standards of corporate governance differ between markets but we believe that there are sufficient common threads globally to identify an overarching set of principles. The primary objective of our corporate governance activities is the protection and enhancement of the value of our clients’ investments in public corporations. Thus, these principles focus on practices and structures that we consider to be supportive of long-term value creation. We discuss below the principles under six key themes. In our regional and market-specific voting guidelines we explain how these principles inform our voting decisions in relation to specific resolutions that may appear on the agenda of a shareholder meeting in the relevant market.

The six key themes are:

 

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Boards and directors

 

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Auditors and audit-related issues

 

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Capital structure, mergers, asset sales and other special transactions

 

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Remuneration and benefits

 

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Social, ethical and environmental issues

 

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General corporate governance matters

At a minimum we would expect companies to observe the accepted corporate governance standard in their domestic market or to explain why doing so is not in the interests of shareholders. Where company reporting and disclosure is inadequate or the approach taken is inconsistent with our view of what is in the best interests of shareholders, we will engage with the company and/or use our vote to encourage a change in practice. In making voting decisions, we take into account research from proxy advisors, other internal and external research, information published by the company or provided through engagement and the views of our equity portfolio managers.

BlackRock views engagement as an important activity; engagement provides BlackRock with the opportunity to improve our understanding of investee companies and their governance structures, so that our voting decisions may be better informed. Engagement also allows us to share our philosophy and approach to investment and corporate governance with companies to enhance their understanding of our objectives. There are a range of approaches we may take in engaging companies depending on the nature of the issue under consideration, the company and the market.

 

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Boards and directors

The performance of the board is critical to the economic success of the company and to the protection of shareholders’ interests. Board members serve as agents of shareholders in overseeing the strategic direction and operation of the company. For this reason, BlackRock focuses on directors in many of its engagements and sees the election of directors as one of its most important responsibilities in the proxy voting context.

We expect the board of directors to promote and protect shareholder interests by:

 

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establishing an appropriate corporate governance structure;

 

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supporting and overseeing management in setting strategy;

 

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ensuring the integrity of financial statements;

 

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making decisions regarding mergers, acquisitions and disposals;

 

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establishing appropriate executive compensation structures; and

 

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addressing business issues including social, ethical and environmental issues when they have the potential to materially impact company reputation and performance.

There should be clear definitions of the role of the board, the sub-committees of the board and the senior management such that the responsibilities of each are well understood and accepted. Companies should report publicly the approach taken to governance (including in relation to board structure) and why this approach is in the interest of shareholders. We will engage with the appropriate directors where we have concerns about the performance of the board or the company, the broad strategy of the company or the performance of individual board members. Concerns about directors may include their role on the board of a different company where that board has performed poorly and failed to protect shareholder interests.

BlackRock believes that directors should stand for re-election on a regular basis. We assess directors nominated for election or re-election in the context of the composition of the board as a whole. There should be detailed disclosure of the relevant credentials of the individual directors in order that shareholders can assess the caliber of an individual nominee. We expect there to be a sufficient number of independent directors on the board to ensure the protection of the interests of all shareholders. Common impediments to independence may include but are not limited to:

 

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current employment at the company or a subsidiary;

 

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former employment within the past several years as an executive of the company;

 

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providing substantial professional services to the company and/or members of the company’s management;

 

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having had a substantial business relationship in the past three years;

 

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having, or representing a shareholder with, a substantial shareholding in the company;

 

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being an immediate family member of any of the aforementioned; and

 

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interlocking directorships.

 

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BlackRock believes that the operation of the board is enhanced when there is a clearly independent, senior non-executive director to lead it. Where the chairman is also the CEO or is otherwise not independent the company should have an independent lead director. The role of this director is to enhance the effectiveness of the independent members of the board through shaping the agenda, ensuring adequate information is provided to the board and encouraging independent participation in board deliberations. The lead independent board director should be available to shareholders if they have concerns that they wish to discuss.

To ensure that the board remains effective, regular reviews of board performance should be carried out and assessments made of gaps in skills or experience amongst the members. BlackRock believes it is beneficial for new directors to be brought onto the board periodically to refresh the group’s thinking and to ensure both continuity and adequate succession planning. In identifying potential candidates, boards should take into consideration the diversity of experience and expertise of the current directors and how that might be augmented by incoming directors. We believe that directors are in the best position to assess the optimal size for the board, but we would be concerned if a board seemed too small to have an appropriate balance of directors or too large to be effective.

There are matters for which the board has responsibility that may involve a conflict of interest for executives or for affiliated directors. BlackRock believes that shareholders’ interests are best served when the independent members of the board form a sub-committee to deal with such matters. In many markets, these sub-committees of the board specialize in audit, director nominations and compensation matters. An ad hoc committee might also be formed to decide on a special transaction, particularly one with a related party.

Auditors and audit-related issues

BlackRock recognizes the critical importance of financial statements which should provide a complete and accurate picture of a company’s financial condition. We will hold the members of the audit committee or equivalent responsible for overseeing the management of the audit function. We take particular note of cases involving significant financial restatements or ad hoc notifications of material financial weakness.

The integrity of financial statements depends on the auditor being free of any impediments to being an effective check on management. To that end, we believe it is important that auditors are, and are seen to be, independent. Where the audit firm provides services to the company in addition to the audit, the fees earned should be disclosed and explained. Audit committees should also have in place a procedure for assuring annually the independence of the auditor.

 

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Capital structure, mergers, asset sales and other special transactions

The capital structure of a company is critical to its owners, the shareholders, as it impacts the value of their investment and the priority of their interest in the company relative to that of other equity or debt investors. Pre-emption rights are a key protection for shareholders against the dilution of their interests.

In assessing mergers, asset sales or other special transactions, BlackRock’s primary consideration is the long-term economic interests of shareholders. Boards proposing a transaction need to clearly explain the economic and strategic rationale behind it. We will review a proposed transaction to determine the degree to which it enhances long-term shareholder value. We would prefer that proposed transactions have the unanimous support of the board and have been negotiated at arm’s length. We may seek reassurance from the board that executive and/or board members’ financial interests in a given transaction have not affected their ability to place shareholders’ interests before their own. Where the transaction involves related parties, we would expect the recommendation to support it to come from the independent directors and would prefer only non-conflicted shareholders to vote on the proposal.

BlackRock believes that shareholders have a right to dispose of company shares in the open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’ ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench interests other than those of the shareholders. We believe that shareholders are broadly capable of making decisions in their own best interests. We would expect any so-called ‘shareholder rights plans’ being proposed by a board to be subject to shareholder approval on introduction and periodically thereafter for continuation.

Remuneration and benefits

BlackRock expects a company’s board of directors to put in place a compensation structure that incentivizes and rewards executives appropriately and is aligned with shareholder interests, particularly long-term shareholder returns. We would expect the compensation committee to take into account the specific circumstances of the company and the key individuals the board is trying to incentivize. We encourage companies to ensure that their compensation packages incorporate appropriate and challenging performance conditions consistent with corporate strategy and market practice. We use third party research, in addition to our own analysis, to evaluate existing and proposed compensation structures. We hold members of the compensation committee or equivalent accountable for poor compensation practices or structures.

BlackRock believes that there should be a clear link between variable pay and company performance as reflected in returns to shareholders. We are not supportive of one-off or special bonuses unrelated to company or individual performance. We support incentive plans that pay out rewards earned over multiple and extended time periods. We believe consideration should be given to building claw back provisions into incentive plans such that executives would be required to repay rewards where they were not justified by actual performance. Compensation committees should guard against contractual arrangements that would entitle executives to material compensation for early termination of their contract. Finally, pension contributions should be reasonable in light of market practice.

 

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Outside directors should be compensated in a manner that does not risk compromising their independence or aligning their interests too closely with those of the management, whom they are charged with overseeing.

Social, ethical, and environmental issues

Our fiduciary duty to clients is to protect and enhance their economic interest in the companies in which we invest on their behalf. It is within this context that we undertake our corporate governance activities. We believe that well-managed companies will deal effectively with the social, ethical and environmental (“SEE”) aspects of their businesses.

BlackRock expects companies to identify and report on the material, business-specific SEE risks and opportunities and to explain how these are managed. This explanation should make clear how the approach taken by the company best serves the interests of shareholders and protects and enhances the long-term economic value of the company. The key performance indicators in relation to SEE matters should also be disclosed and performance against them discussed, along with any peer group benchmarking and verification processes in place. This helps shareholders assess how well management is dealing with the SEE aspects of the business. Any global standards adopted should also be disclosed and discussed in this context.

We may vote against the election of directors where we have concerns that a company might not be dealing with SEE issues appropriately. Sometimes we may reflect such concerns by supporting a shareholder proposal on the issue, where there seems to be either a significant potential threat or realized harm to shareholders’ interests caused by poor management of SEE matters. In deciding our course of action, we will assess whether the company has already taken sufficient steps to address the concern and whether there is a clear and material economic disadvantage to the company if the issue is not addressed.

More commonly, given that these are often not voting issues, we will engage directly with the board or management. The trigger for engagement on a particular SEE concern is our assessment that there is potential for material economic ramifications for shareholders.

We do not see it as our role to make social, ethical or political judgments on behalf of clients. We expect investee companies to comply, at a minimum, with the laws and regulations of the jurisdictions in which they operate. They should explain how they manage situations where such laws or regulations are contradictory or ambiguous.

General corporate governance matters

BlackRock believes that shareholders have a right to timely and detailed information on the financial performance and viability of the companies in which they invest. In addition, companies should also publish information on the governance structures in place and the rights of shareholders to influence these. The reporting and disclosure provided by companies helps shareholders assess whether the economic interests of shareholders have been protected and the quality of the board’s oversight of management. BlackRock believes shareholders should have the right to vote on key corporate governance matters, including on changes to governance mechanisms, to submit proposals to the shareholders’ meeting and to call special meetings of shareholders.

 

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BlackRock’s oversight of its corporate governance activities

Oversight

BlackRock holds itself to a very high standard in its corporate governance activities, including in relation to executing proxy votes. This function is executed by a team of dedicated BlackRock employees without sales responsibilities (the “Corporate Governance Group”), and which is considered an investment function. BlackRock maintains three regional oversight committees (“Corporate Governance Committees”) for the Americas, Europe, the Middle East and Africa (EMEA) and Asia-Pacific, consisting of senior BlackRock investment professionals. All of the regional Corporate Governance Committees report to a Global Corporate Governance Oversight Committee, which is a risk-focused committee composed of senior representatives of the active and index equity investment businesses, the Deputy General Counsel, the Global Executive Committee member to whom the Corporate Governance Group reports and the head of the Corporate Governance Group. The Corporate Governance Committees review and approve amendments to their respective proxy voting guidelines (“Guidelines”) and grant authority to the Global Head of Corporate Governance (“Global Head”), a dedicated BlackRock employee without sales responsibilities, to vote in accordance with the Guidelines. The Global Head leads the Corporate Governance Group to carry out engagement, voting and vote operations in a manner consistent with the relevant Corporate Governance Committee’s mandate. The Corporate Governance Group engages companies in conjunction with the portfolio managers in discussions of significant governance issues, conducts research on corporate governance issues and participates in industry discussions to keep abreast of the field of corporate governance. The Corporate Governance Group, or vendors overseen by the Corporate Governance Group, also monitor upcoming proxy votes, execute proxy votes and maintain records of votes cast. The Corporate Governance Group may refer complicated or particularly controversial matters or discussions to the appropriate investors and/or regional Corporate Governance Committees for their review, discussion and guidance prior to making a voting decision.

BlackRock’s Equity Policy Oversight Committee (EPOC) is informed of certain aspects of the work of the Global Corporate Governance Oversight Committee and the Corporate Governance Group.

Vote execution

BlackRock carefully considers proxies submitted to funds and other fiduciary accounts (“Funds”) for which it has voting authority. BlackRock votes (or refrains from voting) proxies for each Fund for which it has voting authority based on BlackRock’s evaluation of the best long-term economic interests of shareholders, in the exercise of its independent business judgment, and without regard to the relationship of the issuer of the proxy (or any dissident shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates.

When exercising voting rights, BlackRock will normally vote on specific proxy issues in accordance with its Guidelines for the relevant market. The Guidelines are reviewed regularly and are amended consistent with changes in the local market practice, as developments in corporate governance occur, or as otherwise deemed advisable by BlackRock’s Corporate Governance Committees. The Corporate Governance Committees may, in the exercise of their business judgment, conclude that the Guidelines do not cover the specific matter upon which a proxy vote is requested or that an exception to the Guidelines would be in the best long-term economic interests of BlackRock’s clients.

 

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In the uncommon circumstance of there being a vote with respect to fixed income securities or the securities of privately held issuers the decision generally will be made by a Fund’s portfolio managers and/or the Corporate Governance Group based on their assessment of the particular transactions or other matters at issue.

In certain markets, proxy voting involves logistical issues which can affect BlackRock’s ability to vote such proxies, as well as the desirability of voting such proxies. These issues include but are not limited to: (i) untimely notice of shareholder meetings; (ii) restrictions on a foreigner’s ability to exercise votes; (iii) requirements to vote proxies in person; (iv) “share- blocking” (requirements that investors who exercise their voting rights surrender the right to dispose of their holdings for some specified period in proximity to the shareholder meeting); (v) potential difficulties in translating the proxy; and (vi) requirements to provide local agents with unrestricted powers of attorney to facilitate voting instructions. We are not supportive of impediments to the exercise of voting rights such as shareblocking or overly burdensome administrative requirements.

As a consequence, BlackRock votes proxies in these markets only on a “best-efforts” basis. In addition, the Corporate Governance Committees may determine that it is generally in the best interests of BlackRock clients not to vote proxies of companies in certain countries if the committee determines that the costs (including but not limited to opportunity costs associated with shareblocking constraints) associated with exercising a vote are expected to outweigh the benefit the client would derive by voting on the issuer’s proposal.

While it is expected that BlackRock, as a fiduciary, will generally seek to vote proxies over which BlackRock exercises voting authority in a uniform manner for all BlackRock clients, the relevant Corporate Governance Committee, in conjunction with the portfolio manager of an account, may determine that the specific circumstances of such an account require that such account’s proxies be voted differently due to such account’s investment objective or other factors that differentiate it from other accounts. In addition, BlackRock believes portfolio managers may from time to time legitimately reach differing but equally valid views, as fiduciaries for their funds and the client assets in those Funds, on how best to maximize economic value in respect of a particular investment. Accordingly, portfolio managers retain full discretion to vote the shares in the Funds they manage based on their analysis of the economic impact of a particular ballot item.

Conflicts management

BlackRock maintains policies and procedures that are designed to prevent undue influence on BlackRock’s proxy voting activity that might stem from any relationship between the issuer of a proxy (or any dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates. Some of the steps BlackRock has taken to prevent conflicts include, but are not limited to:

 

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BlackRock has adopted a proxy voting oversight structure whereby the Corporate Governance Committees oversee the voting decisions and other activities of the Corporate Governance Group, and particularly its activities with respect to voting in the relevant region of each Corporate Governance Committee’s jurisdiction.

 

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The Corporate Governance Committees have adopted Guidelines for each region, which set forth the firm’s views with respect to certain corporate governance and other issues that typically arise in the proxy voting context. The Corporate Governance Committees receive periodic reports regarding the specific votes cast by the Corporate Governance Group and regular updates on material process issues, procedural changes and other matters of concern to the Corporate Governance Committees.

 

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BlackRock’s Global Corporate Governance Oversight Committee oversees the Global Head, the Corporate Governance Group and the Corporate Governance Committees. The Global Corporate Governance Oversight Committee conducts a review, at least annually, of the proxy voting process to ensure compliance with BlackRock’s risk policies and procedures.

 

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BlackRock maintains a reporting structure that separates the Global Head and Corporate Governance Group from employees with sales responsibilities. In addition, BlackRock maintains procedures intended to ensure that all engagements with corporate issuers or dissident shareholders are managed consistently and without regard to BlackRock’s relationship with the issuer of the proxy or dissident shareholder. Within the normal course of business, the Global Head or Corporate Governance Group may engage directly with BlackRock clients, and with employees with sales responsibilities, in discussions regarding general corporate governance policy matters, and to otherwise ensure that proxy-related client service levels are met. The Global Head or Corporate Governance Group does not discuss any specific voting matter with a client prior to the disclosure of the vote decision to all applicable clients after the shareholder meeting has taken place, except if the client is acting in the capacity as issuer of the proxy or dissident shareholder and is engaging through the established procedures independent of the client relationship.

 

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In certain instances, BlackRock may determine to engage an independent fiduciary to vote proxies as a further safeguard to avoid potential conflicts of interest or as otherwise required by applicable law. The independent fiduciary may either vote such proxies or provide BlackRock with instructions as to how to vote such proxies. In the latter case, BlackRock votes the proxy in accordance with the independent fiduciary’s determination. Use of an independent fiduciary has been adopted for voting the proxies related to any company that is affiliated with BlackRock or any company that includes BlackRock employees on its board of directors.

With regard to the relationship between securities lending and proxy voting, BlackRock’s approach is driven by our clients’ economic interests. The evaluation of the economic desirability of recalling loans involves balancing the revenue producing value of loans against the likely economic value of casting votes. Based on our evaluation of this relationship, we believe that generally the likely economic value of casting most votes is less than the securities lending income, either because the votes will not have significant economic consequences or because the outcome of the vote would not be affected by BlackRock recalling loaned securities in order to ensure they are voted. Periodically, BlackRock analyzes the process and benefits of voting proxies for securities on loan, and will consider whether any modification of its proxy voting policies or procedures is necessary in light of future conditions. In addition, BlackRock may in its discretion determine that the value of voting outweighs the cost of recalling shares, and thus recall shares to vote in that instance.

Voting guidelines

The issue-specific voting Guidelines published for each region/country in which we vote are intended to summarize BlackRock’s general philosophy and approach to issues that may commonly arise in the proxy voting context in each market where we invest. These Guidelines are not intended to be exhaustive. BlackRock applies the Guidelines on a case-by-case basis, in the context of the individual circumstances of each company and the specific issue under review.

 

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As such, these Guidelines do not provide a guide to how BlackRock will vote in every instance. Rather, they share our view about corporate governance issues generally, and provide insight into how we typically approach issues that commonly arise on corporate ballots.

Reporting

We report our proxy voting activity directly to clients and publically as required. In addition, we publish for clients a more detailed discussion of our corporate governance activities, including engagement with companies and with other relevant parties.

 

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