UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-07642

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

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniAssets Fund, Inc., 55 East 52nd Street, New York, NY 10055

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

Date of fiscal year end: 04/30/2020

Date of reporting period: 10/31/2019


Item 1 – Report to Stockholders


 

LOGO   OCTOBER 31, 2019

 

  

2019 Semi-Annual Report

(Unaudited)

 

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,

Investment performance in the 12 months ended October 31, 2019 was a tale of two markets. The first half of the reporting period was characterized by restrictive monetary policy, deteriorating economic growth, equity market volatility, and rising fear of an imminent recession. During the second half of the reporting period, stocks and bonds rebounded sharply, as influential central banks shifted toward accommodative monetary policy, which led to broad-based optimism that a near-term recession could be averted.

After the dust settled, equity and bond markets posted mixed returns while weathering significant volatility. U.S. large cap equities and U.S. bonds advanced, while equities at the high end of the risk spectrum — emerging markets and U.S. small cap — posted modest negative returns.

Fixed-income securities played an important role in diversified portfolios by delivering strong returns amid economic uncertainty, as interest rates declined (and bond prices rose). Long-term bonds, particularly long-term Treasuries, proved to be an effective ballast for diversified investors. Investment-grade and high-yield corporate bonds posted positive returns, as the credit fundamentals in corporate markets remained relatively solid.

In the U.S. equity market, volatility spiked in late 2018, as a wide variety of risks were brought to bear on markets, including rising interest rates, slowing global growth, and heightened trade tensions. Volatility also rose in emerging markets, as the appreciating U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. Despite an economic slowdown in Europe and ongoing uncertainty about Brexit, European equities posted a modest positive return.

As equity performance faltered and global economic growth slowed, the U.S. Federal Reserve (the “Fed”) shifted away from policies designed to decrease inflation in favor of renewed efforts to stimulate economic activity. The Fed left interest rates unchanged in January 2019, then reduced interest rates three times thereafter, starting in July 2019. Similarly, the Fed took measures to support liquidity in short-term lending markets. Following in the Fed’s footsteps, the European Central Bank announced aggressive economic stimulus measures, including lower interest rates and the return of its bond purchasing program. The Bank of Japan signaled a continuation of accommodative monetary policy, while China committed to looser credit conditions and an increase in fiscal spending.

The outpouring of global economic stimulus led to a sharp rally in risk assets throughout the world despite the headwind of rising geopolitical and trade tensions. Hopes continued to remain high as the current economic expansion became the longest in U.S. history.

We continue to expect a slowing expansion with additional room to run. Despite a sharp slowdown in trade and manufacturing across the globe, U.S. consumers continued to spend at a relatively healthy pace, benefiting from the lowest unemployment rate in 50 years and rising wages. However, trade disputes and the resulting disruptions in global supply chains, as well as geopolitical tensions, particularly in the Middle East, continued to have a negative impact on global growth.

Overall, we favor reducing investment risk due to rising economic uncertainty. We believe U.S. equities remain relatively attractive, but we are shifting to a more cautious stance by emphasizing factors that seek lower-volatility and higher-quality stocks. In fixed income, government bonds continue to be important portfolio stabilizers, while emerging market bonds offer relatively attractive income opportunities.

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of October 31, 2019
     6-month   12-month

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

  4.16%   14.33%

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

  (1.09)   4.90

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

  3.35   11.04

Emerging market equities
(MSCI Emerging Markets Index)

  (1.67)   11.86

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

  1.21   2.40

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

  8.17   15.85

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

  5.71   11.51

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

  3.52   9.07

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

  2.69   8.38
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT


Table of Contents

 

      Page  

The Markets in Review

     2  

Semi-Annual Report:

  

Municipal Market Overview

     4  

The Benefits and Risks of Leveraging

     5  

Derivative Financial Instruments

     5  

Fund Summaries

     6  

Financial Statements:

  

Schedules of Investments

     20  

Statements of Assets and Liabilities

     73  

Statements of Operations

     75  

Statements of Changes in Net Assets

     77  

Statements of Cash Flows

     81  

Financial Highlights

     83  

Notes to Financial Statements

     90  

Disclosure of Investment Advisory Agreements

     99  

Director and Officer Information

     103  

Additional Information

     104  

Glossary of Terms Used in this Report

     107  

 

 

          3  


Municipal Market Overview  For the Reporting Period Ended October 31, 2019

 

Municipal Market Conditions

Municipal bonds posted strong total returns during the period, buoyed by rallying interest rates as the Fed turned more dovish late in 2018 on the back of slowing global growth and trade uncertainties, indicated a commitment to sustain the current economic expansion, and executed a mid-cycle adjustment consisting of three 0.25% rate cuts.

 

 
Outside of the favorable rate backdrop, municipal technicals remained supportive with strong demand outpacing modest supply. 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 October 31, 2019, municipal bond funds experienced net inflows of approximately $70 billion (based on data from the Investment Company Institute), with 2019 on track to be the best year for municipal fund flows on record. For   S&P Municipal Bond Index
  Total Returns as of October 31, 2019
    6 months: 3.52%
  12 months: 9.07%

the same 12-month period, total new issuance was moderate from a historical perspective at $364 billion. Notably, taxable municipal issuance picked up late in 2019, as issuers advance refunded tax-exempt debt using taxable municipal bonds for cost savings, given the inability to do so in the tax-exempt market post-tax reform. However, the market ultimately remained in a favorable net negative supply environment in which reinvestment income (coupons, calls, and maturities) outstripped gross issuance and provided a technical tailwind.

A Closer Look at Yields

 

LOGO

From October 31, 2018 to October 31, 2019, yields on AAA-rated 30-year municipal bonds decreased by 132 basis points (“bps”) from 3.38% to 2.06%, while ten-year rates decreased by 124 bps from 2.73% to 1.49% and five-year rates decreased by 115 bps from 2.30% to 1.15% (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 36 bps, led by 28 bps of flattening between two- and ten-year maturities.

During the same time period, tax-exempt municipal bonds underperformed duration matched U.S. Treasuries, most notably in the front and intermediate part of the curve. However, relative valuations remained stretched versus history. Given that the corporate tax rate was lowered much more than the individual rate, institutions now have less incentive to own tax-exempt municipal bonds, while individuals are more incentivized. In a more retail-driven market, lower municipal-to-Treasury ratios are likely sustainable as individuals are focused more on generating tax-free income and less concerned with relative valuations. 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

Most states and locals are on solid footing as tax receipts are increasing steadily and spending levels are rebounding from post-recession lows. Rising healthcare expenditures and legacy pension costs are plaguing a handful of high-profile credits. Essential service revenue bonds continue to benefit from deleveraging. Several private-public partnerships and off-balance sheet projects have made headlines for cost-overruns that are calling into question their value-add. More caution is warranted in the non-profit sectors, especially less-selective private education credits that are dealing with competitive pressures and are burdened with outsized debt. Merger and acquisition activity remained elevated in the hospital sector, providing opportunities to generate performance. Additionally, high yield remains an important driver of performance. BlackRock maintains the view that municipal bond defaults will remain minimal and the overall market is fundamentally sound. However, we continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of October 31, 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 S&P 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 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


The Benefits and Risks of Leveraging

 

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

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Funds (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Funds’ shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage (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 value of the Funds’ obligations under their respective leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that the Funds’ intended leveraging strategy will be successful.

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

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

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

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

Derivative Financial Instruments

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

 

 

THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS      5  


Fund Summary  as of October 31, 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 October 31, 2019 ($15.49)(a)

  4.07%

Tax Equivalent Yield(b)

  6.88%

Current Monthly Distribution per Common Share(c)

  $0.0525

Current Annualized Distribution per Common Share(c)

  $0.6300

Leverage as of October 31, 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 six months ended October 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUA(a)(b)

    5.65      3.91

Lipper High Yield Municipal Debt Funds(c)

    6.01        5.00  

 

  (a) 

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

 
  (b) 

The Fund’s premium 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:

The Fund performed well for the period, with price appreciation augmenting the contribution from income. The Fund’s holdings in longer-dated securities with maturities of 20 years and above generated the strongest returns. Allocations to unrated securities and bonds rated below investment grade added value at a time in which lower-quality bonds outperformed. At the sector level, the Fund’s positions in tobacco, tax-backed and health care issues made the largest contributions 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 detracted from the Fund’s results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

6    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2019 (continued)    BlackRock MuniAssets Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/19      04/30/19      Change      High      Low  

Market Price

  $ 15.49      $ 14.98        3.40    $ 16.05      $ 14.82  

Net Asset Value

    14.38        14.14        1.70        14.51        14.14  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/19     04/30/19  

County/City/Special District/School District

    18     18

Transportation

    18       18  

Tobacco

    14       15  

Utilities

    14       13  

Health

    14       17  

Education

    9       8  

State

    6       3  

Corporate

    4       4  

Housing

    3       4  

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

    13

2020

    8  

2021

    20  

2022

    7  

2023

    12  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/19     04/30/19  

AA/Aa

    18     19

A

    9       10  

BBB/Baa

    16       19  

BB/Ba

    11       8  

B/B

    10        

B

          11  

CCC

    1        

CC

    3       3  

N/R(b)

    32       30  

 

  (a) 

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

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2019 and April 30, 2019, 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.

 
 

 

 

FUND SUMMARY      7  


Fund Summary  as of October 31, 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. Effective July 31, 2019, the Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on NYSE

  MEN

Initial Offering Date

  March 2, 1989

Yield on Closing Market Price as of October 31, 2019 ($11.16)(a)

  4.19%

Tax Equivalent Yield(b)

  7.08%

Current Monthly Distribution per Common Share(c)

  $0.0390

Current Annualized Distribution per Common Share(c)

  $0.4680

Leverage as of October 31, 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 six months ended October 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MEN(a)(b)

    6.49      5.32

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

    6.79        5.04  

 

  (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:

The Fund performed well for the period, with price appreciation augmenting the contribution from income. The Fund’s use of leverage aided results by amplifying the effect of both income and rising bond prices.

The positive market conditions contributed to robust, steady inflows into the municipal bond market and prompted investors to reach for yield. In this environment, the Fund benefited from its allocations to the long end of the yield curve, lower-rated issues, and low-coupon structures. At the sector level, the Fund’s positions in transportation and health care issues — both of which benefited from investors’ search for yield — made the largest contributions.

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 detracted from the Fund’s results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

8    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2019 (continued)    BlackRock MuniEnhanced Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/19      04/30/19      Change      High      Low  

Market Price

  $ 11.16      $ 10.71        4.20    $ 11.55      $ 10.70  

Net Asset Value

    12.12        11.76        3.06        12.35        11.76  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/19     04/30/19  

Transportation

    26     24

Health

    16       16  

State

    16       15  

County/City/Special District/School District

    15       15  

Utilities

    10       11  

Housing

    7       6  

Education

    6       7  

Tobacco

    3       2  

Corporate

    1       4  

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

    1

2020

    3  

2021

    12  

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   10/31/19     04/30/19  

AAA/Aaa

    6     6

AA/Aa

    45       46  

A

    28       28  

BBB/Baa

    11       14  

BB/Ba

    1       2  

B/B

    1        

N/R(b)

    8       4  

 

  (a) 

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

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2019 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1%, of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      9  


Fund Summary  as of October 31, 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 October 31, 2019 ($16.26)(a)

  4.69%

Tax Equivalent Yield(b)

  7.92%

Current Monthly Distribution per Common Share(c)

  $0.0635

Current Annualized Distribution per Common Share(c)

  $0.7620

Leverage as of October 31, 2019(d)

  35%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

The monthly distribution per Common Share, declared on December 6, 2019, was decreased to $0.0605 per share. The yield on closing market price, tax equivalent yield, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. A portion of the distribution may be deemed a return of capital or net realized gain.

 
  (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 six months ended October 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MHD(a)(b)

    4.54      4.65

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

    6.79        5.04  

 

  (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:

The Fund performed well for the period, with price appreciation augmenting the contribution from income. The Fund’s holdings in longer-dated securities with maturities of 20 years and above generated the strongest returns. Allocations to bonds rated at the lower end of the investment grade spectrum (A and BBB) added value at a time in which lower-quality bonds outperformed. At the sector level, the Fund’s positions in tax-backed, transportation and health care issues made the largest contributions 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 detracted from the Fund’s results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

10    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2019 (continued)    BlackRock MuniHoldings Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      10/31/19      04/30/19      Change      High      Low  

Market Price

   $ 16.26      $ 15.92        2.14    $ 17.82      $ 15.80  

Net Asset Value

     16.93        16.56        2.23        17.22        16.56  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/19     04/30/19  

Transportation

    26     25

Utilities

    18       14  

Health

    14       16  

County/City/Special District/School District

    13       13  

State

    10       10  

Tobacco

    8       7  

Education

    7       8  

Corporate

    4       6  

Housing

          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

    9

2020

    11  

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   10/31/19     04/30/19  

AAA/Aaa

    4     4

AA/Aa

    36       39  

A

    22       22  

BBB/Baa

    16       15  

BB/Ba

    6       3  

B/B

    4       5  

CC

    1        

N/R(b)

    11       12  

 

  (a) 

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

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2019 and April 30, 2019, 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.

 
 

 

 

FUND SUMMARY      11  


Fund Summary  as of October 31, 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 October 31, 2019 ($14.72)(a)

  4.61%

Tax Equivalent Yield(b)

  7.79%

Current Monthly Distribution per Common Share(c)

  $0.0565

Current Annualized Distribution per Common Share(c)

  $0.6780

Leverage as of October 31, 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 six months ended October 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUH(a)(b)

    0.09      5.20

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

    6.79        5.04  

 

  (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:

The Fund performed well for the period, with price appreciation augmenting the contribution from income. The Fund’s use of leverage aided results by amplifying the effect of both income and rising bond prices.

The positive market conditions contributed to robust, steady inflows into the municipal bond market and prompted investors to reach for yield. In this environment, the Fund benefited from its allocations to the long end of the yield curve, lower-rated issues, and low-coupon structures. At the sector level, the Fund’s positions in tobacco and health care issues — both of which benefited from investors’ search for yield — made the largest contributions 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 detracted from the Fund’s results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

12    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2019 (continued)    BlackRock MuniHoldings Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      10/31/19      04/30/19      Change      High      Low  

Market Price

   $ 14.72      $ 15.05        (2.19 )%     $ 15.64      $ 14.44  

Net Asset Value

     15.75        15.32        2.81        16.06        15.32  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/19     04/30/19  

Transportation

    24     22

Health

    15       17  

County/City/Special District/School District

    15       16  

Utilities

    12       12  

State

    11       11  

Housing

    7       7  

Tobacco

    6       6  

Corporate

    5       5  

Education

    5       4  

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

    6

2020

    10  

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   10/31/19     04/30/19  

AAA/Aaa

    3     4

AA/Aa

    40       41  

A

    21       22  

BBB/Baa

    15       15  

BB/Ba

    5       2  

B/B

    3       4  

CC

    1       1  

N/R(b)

    12       11  

 

  (a) 

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

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2019 and 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.

 
 

 

 

FUND SUMMARY      13  


Fund Summary  as of October 31, 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. Effective July 31, 2019, the Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on NYSE

  MUS

Initial Offering Date

  May 1, 1998

Yield on Closing Market Price as of October 31, 2019 ($12.55)(a)

  4.25%

Tax Equivalent Yield(b)

  7.18%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Leverage as of October 31, 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 six months ended October 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUS(a)(b)

    6.73      4.79

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

    6.79        5.04  

 

  (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:

The Fund performed well for the period, with price appreciation augmenting the contribution from income. The Fund’s holdings in longer-dated securities, which outperformed both short- and intermediate-term issues, generated the strongest returns.

The Fund’s investment guidelines were recently updated to allow for a weighting of up to 20% in high yield bonds to align it more closely with its peer offerings. The investment adviser therefore added positions in high yield issues over the course of the period, which enhanced both income and total return.

All sectors of the Fund generated positive returns, but the transportation and tax-backed sectors made the largest contributions to absolute performance given their higher weightings in the portfolio.

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 detracted from the Fund’s results.

Reinvestment risk continued to be a headwind for the Fund, as the proceeds from bonds that matured or were called needed to be reinvested at lower prevailing yields compared to bonds that were issued when yields were higher.

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 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2019 (continued)    BlackRock MuniHoldings Quality Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      10/31/19      04/30/19      Change      High      Low  

Market Price

   $ 12.55      $ 12.01        4.50    $ 12.93      $ 11.99  

Net Asset Value

     13.86        13.51        2.59        14.12        13.51  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/19     04/30/19  

Transportation

    35     34

County/City/Special District/School District

    16       20  

State

    16       13  

Health

    11       8  

Utilities

    10       11  

Education

    8       9  

Tobacco

    2       2  

Housing

    2       2  

Corporate

          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

    1

2020

    4  

2021

    17  

2022

    2  

2023

    17  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   10/31/19     04/30/19  

AAA/Aaa

    3     3

AA/Aa

    44       48  

A

    33       32  

BBB/Baa

    13       11  

N/R(b)

    7       6  

 

  (a) 

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

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2019 and 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.

 
 

 

 

FUND SUMMARY      15  


Fund Summary  as of October 31, 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 October 31, 2019 ($14.19)(a)

  3.76%

Tax Equivalent Yield(b)

  6.35%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Leverage as of October 31, 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 six months ended October 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUI(a)(b)

    4.39      4.67

Lipper Intermediate Municipal Debt Funds(c)

    4.89        3.12  

 

  (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:

The Fund performed well for the period, with price appreciation augmenting the contribution from income. The Fund’s use of leverage, which enhanced portfolio income and amplified the impact of rising prices, aided results. The Fund’s holdings on the longer end of the intermediate range also contributed given the outperformance for longer-term debt relative to shorter maturities. Allocations to bonds rated at the lower end of the investment grade spectrum (AA, A and BBB) added value, as well. At the sector level, the Fund’s positions in state tax-backed and transportation issues made the largest contributions.

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 detracted from the Fund’s results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

16    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2019 (continued)    BlackRock Muni Intermediate Duration Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      10/31/19      04/30/19      Change      High      Low  

Market Price

   $ 14.19      $ 13.85        2.45    $ 14.78      $ 13.80  

Net Asset Value

     15.82        15.40        2.73        16.10        15.40  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/19     04/30/19  

Transportation

    28     30

County/City/Special District/School District

    16       15  

Education

    13       12  

State

    13       12  

Health

    11       13  

Utilities

    11       10  

Tobacco

    4       4  

Corporate

    2       2  

Housing

    2       2  

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2019

    3

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   10/31/19     04/30/19  

AAA/Aaa

    4     5

AA/Aa

    31       33  

A

    35       35  

BBB/Baa

    14       17  

BB/Ba

    5       2  

B/B

    1        

B

          2  

N/R(b)

    10       6  

 

  (a) 

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

 
  (b) 

The investment adviser evaluates the credit quality of unrated Investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2019 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      17  


Fund Summary  as of October 31, 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 October 31, 2019 ($14.45)(a)

  4.61%

Tax Equivalent Yield(b)

  7.79%

Current Monthly Distribution per Common Share(c)

  $0.0555

Current Annualized Distribution per Common Share(c)

  $0.6660

Leverage as of October 31, 2019(d)

  36%

 

  (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 six months ended October 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MVT(a)(b)

    3.46      4.72

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

    6.79        5.04  

 

  (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:

The Fund performed well for the period, with price appreciation augmenting the contribution from income. The Fund’s holdings in longer-dated securities with maturities of 20 years and above generated the strongest returns. Allocations to bonds rated at the lower end of the investment grade spectrum (A and BBB) added value at a time in which lower-quality bonds outperformed. At the sector level, the Fund’s positions in tax-backed, transportation and health care issues made the largest contributions 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 detracted from the Fund’s results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

18    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of October 31, 2019 (continued)    BlackRock MuniVest Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      10/31/19      04/30/19      Change      High      Low  

Market Price

   $ 14.45      $ 14.29        1.12    $ 15.71      $ 14.23  

Net Asset Value

     15.22        14.87        2.35        15.48        14.87  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector Allocation   10/31/19     04/30/19  

Transportation

    24     24

Utilities

    17       14  

Health

    17       18  

County/City/Special District/School District

    13       13  

State

    8       9  

Tobacco

    8       7  

Education

    7       8  

Corporate

    6       6  

Housing

          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

    7

2020

    10  

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   10/31/19     04/30/19  

AAA/Aaa

    5     4

AA/Aa

    31       34  

A

    24       25  

BBB/Baa

    17       19  

BB/Ba

    7       3  

B/B

    4        

B

          4  

C

          1  

N/R(b)

    12       10  

 

  (a) 

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

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2019 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      19  


Schedule of Investments  (unaudited)

October 31, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 89.3%

 

Alabama — 1.1%  

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

  $ 3,745     $ 4,411,460  

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

   

4.50%, 05/01/32

    380       416,666  

5.25%, 05/01/44

    485       552,789  

Hoover Industrial Development Board, RB, U.S. Steel Corporation Project, AMT, 5.75%, 10/01/49

    515       543,464  
   

 

 

 
      5,924,379  
Alaska — 1.2%  

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

   

4.63%, 06/01/23

    180       180,218  

5.00%, 06/01/32

    1,500       1,500,390  

5.00%, 06/01/46

    4,290       4,300,725  
   

 

 

 
      5,981,333  
Arizona — 2.9%  

Arizona IDA, RB, Series A(a):

   

Doral Academy of Neveda — Fire Mesa & Red Rock Campus Projects, 5.00%, 07/15/39

    520       579,509  

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

    250       277,692  

Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.13%, 07/01/37(a)

    960       1,057,450  

Arizona Industrial Development Authority, Refunding RB, Odyssey Preparatory Academy Project, Series A, 5.50%, 07/01/52(a)

    1,775       1,906,918  

City of Phoenix Arizona IDA, RB:

   

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

    500       541,995  

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

    425       461,393  

Legacy Traditional Schools Projects, Series A, 6.50%, 07/01/34(a)

    570       645,491  

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

    1,000       1,121,840  

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

   

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

    305       331,840  

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

    260       282,880  

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

    855       909,660  

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

    290       306,820  

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

    320       341,622  

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

    255       268,015  

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

    875       927,360  

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

    1,650       2,212,980  

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

    665       704,614  

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

    1,765       1,929,445  
   

 

 

 
      14,807,524  
California — 5.8%  

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

   

5.50%, 08/01/34

    315       335,566  

6.00%, 08/01/44

    665       716,238  

6.13%, 08/01/49

    580       626,232  

California School Finance Authority, RB:

   

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

    1,570       1,779,234  

Value Schools, 6.65%, 07/01/33

    435       496,352  

Value Schools, 6.90%, 07/01/43

    975       1,103,934  
Security   Par
(000)
    Value  
California (continued)  

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

   

5.25%, 12/01/38

  $ 580     $ 690,444  

Series A, 5.00%, 12/01/46

    725       810,224  

Series A, 5.25%, 12/01/56

    620       705,355  

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

    1,650       1,651,287  

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

   

0.00%, 08/01/26

    1,250       939,263  

0.00%, 08/01/43

    1,500       470,610  

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

   

6.50%, 05/01/36

    900       965,934  

6.50%, 05/01/42

    2,220       2,376,199  

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

    375       435,424  

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

   

5.70%, 06/01/46

    3,600       3,639,528  

5.60%, 06/01/36

    1,285       1,298,608  

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

    2,885       3,241,038  

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

   

5.00%, 06/01/47

    790       813,187  

5.25%, 06/01/47

    610       631,344  

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

   

4.75%, 06/01/25

    535       535,594  

5.00%, 06/01/37

    5,580       5,582,399  
   

 

 

 
      29,843,994  
Colorado — 1.6%  

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

    910       971,407  

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

    1,240       1,335,802  

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

    575       607,752  

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

    720       754,884  

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

    500       519,740  

Palisade Metropolitan District No. 2, GO, Subordinate, 7.25%, 12/15/49

    1,211       1,196,577  

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

    760       805,106  

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

    1,500       1,526,280  

Southlands Metropolitan District No. 1, GO, Refunding, Series A-1, 5.00%, 12/01/47

    410       458,495  
   

 

 

 
      8,176,043  
Connecticut — 0.9%  

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

    1,400       1,436,890  

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

    970       1,049,579  

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

    1,835       2,070,504  
   

 

 

 
      4,556,973  
 

 

 

20    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Delaware — 0.8%  

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

  $ 1,000     $ 1,041,570  

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

    3,180       3,270,725  
   

 

 

 
      4,312,295  
Florida — 8.8%  

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

    1,420       1,469,643  

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

    1,495       1,608,396  

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

   

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

    515       298,700  

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

    1,105       640,900  

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

    940       984,941  

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

    655       641,900  

County of Charlotte Florida IDA, RB, Town & Country Utilities Project, AMT(a):

   

5.00%, 10/01/34

    245       271,367  

5.00%, 10/01/49

    1,170       1,268,385  

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

    630       633,377  

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

    915       1,007,067  

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

    500       560,975  

Florida Development Finance Corp., RB:

   

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

    690       758,110  

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

    835       914,467  

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

    3,180       3,439,933  

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

    1,550       1,608,838  

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

    1,115       1,227,258  

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

    1,750       1,819,388  

Lakewood Ranch Stewardship District, Special Assessment Bonds:

   

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

    395       435,191  

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

    400       452,780  

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

    665       744,973  

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

    645       719,923  

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

    565       615,076  

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

    1,150       1,270,371  

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

    1,485       1,618,368  

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

   

4.00%, 05/01/21

    100       101,210  

4.25%, 05/01/26

    135       141,596  

5.13%, 05/01/46

    820       872,037  

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

    4,550       5,062,467  
Security   Par
(000)
    Value  
Florida (continued)  

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

   

Series A, 5.00%, 05/01/37

  $ 845     $ 889,337  

Series B, 5.00%, 05/01/37

    495       520,973  

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

    3,650       2,904,842  

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

   

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

    305       268,464  

Series 2015-2, 6.61%, 05/01/40

    805       583,561  

Tolomato Community Development District(e)(f):

   

Series 1, 6.61%, 05/01/40(d)

    1,305       1,156,334  

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       468,593  

5.50%, 05/01/49

    1,105       1,183,720  

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

   

6.75%, 05/01/31

    1,435       1,527,715  

7.00%, 05/01/41

    2,360       2,506,745  

5.50%, 05/01/42

    1,135       1,209,388  

West Villages Improvement District, Special Assessment Bonds:

   

4.75%, 05/01/39

    455       479,520  

5.00%, 05/01/50

    940       986,229  
   

 

 

 
      45,873,074  
Georgia — 1.5%  

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

    3,365       3,495,394  

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

   

5.00%, 05/15/35

    560       725,435  

5.00%, 05/15/36

    560       730,363  

5.00%, 05/15/37

    615       807,218  

5.00%, 05/15/38

    340       446,889  

5.00%, 05/15/49

    1,130       1,523,150  
   

 

 

 
      7,728,449  
Guam — 0.0%  

Territory of Guam, GO, Series A, 6.00%, 11/15/19

    140       140,200  
   

 

 

 
Illinois — 5.9%  

Chicago Board of Education, GO, Series C:

   

Dedicated Revenues, Series H, 5.00%, 12/01/46

    720       811,814  

Project, 5.25%, 12/01/35

    1,655       1,825,515  

Chicago Board of Education, GO, Refunding:

   

Dedicated Revenues, Series D, 5.00%, 12/01/27

    900       1,044,477  

Dedicated Revenues, Series D, 5.00%, 12/01/31

    1,000       1,148,660  

Dedicated Revenues, Series G, 5.00%, 12/01/44

    2,150       2,428,253  

Series B, 4.00%, 12/01/35

    745       756,607  

5.00%, 12/01/25

    725       823,745  

Chicago Board of Education, GO:

   

Series A, 5.00%, 12/01/42

    1,020       1,074,131  

Series D, 5.00%, 12/01/46

    600       684,696  

Series D, 5.00%, 12/01/46

    1,555       1,661,766  

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

    1,260       1,494,688  

Illinois Finance Authority, Refunding RB:

   

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

    670       672,097  

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

    365       404,584  

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

    860       941,623  
 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

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

   

Bonds, 0.00%, 12/15/56(c)

  $ 5,005     $ 1,187,086  

5.50%, 06/15/53

    2,370       2,652,931  

Metropolitan Pier & Exposition Authority, Refunding RB, Series B(c):

   

McCormick Place Expansion Project Bonds, 0.00%, 12/15/54

    6,980       1,792,325  

Mccormick Place Expansion Project, 0.00%, 12/15/51

    12,685       3,697,043  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    180       191,878  

6.00%, 06/01/21

    710       762,199  

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

    1,975       2,270,776  

State of Illinois, GO, Series A, 5.00%, 01/01/33

    740       773,803  

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

    1,583       1,585,850  
   

 

 

 
      30,686,547  
Indiana — 2.6%  

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

   

6.75%, 01/01/34

    825       956,728  

7.00%, 01/01/44

    2,000       2,273,820  

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

    2,175       2,235,922  

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

   

6.63%, 01/15/34

    290       321,926  

6.75%, 01/15/43

    525       577,290  

6.88%, 01/15/52

    2,450       2,692,354  

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

   

5.00%, 07/01/44

    470       509,743  

5.00%, 07/01/48

    1,555       1,680,846  

Indiana Housing & Community Development Authority, RB, Lake Meadows Assisted Living Project, Series A, 5.00%, 01/01/39(a)

    900       920,574  

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

    1,190       1,281,654  
   

 

 

 
      13,450,857  
Iowa — 2.0%  

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

   

Series B, 5.25%, 12/01/50(g)

    2,085       2,254,469  

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

    2,190       2,348,096  

Iowa Tobacco Settlement Authority, Refunding RB:

   

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

    795       795,994  

Series C, 5.38%, 06/01/38

    4,900       4,900,147  
   

 

 

 
      10,298,706  
Kansas — 0.2%  

City of Wichita Kansas, Refunding RB, Presbyterian Manors, Inc.:

   

5.00%, 05/15/34

    280       312,121  

5.00%, 05/15/50

    485       520,832  
   

 

 

 
      832,953  
Kentucky — 0.9%  

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

    4,000       4,458,120  
   

 

 

 
Louisiana — 2.2%  

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

    2,430       2,457,921  
Security   Par
(000)
    Value  
Louisiana (continued)  

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, S/F Housing, University of Louisiana Monroe Project, 5.00%, 07/01/54(a)

  $ 930     $ 1,007,423  

Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.75%, 05/01/21(b)

    1,745       1,861,409  

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

    5,570       6,126,554  
   

 

 

 
      11,453,307  
Maine — 0.6%  

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

    2,955       3,149,882  
   

 

 

 
Maryland — 1.2%  

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

    2,825       2,895,540  

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

    3,085       3,159,225  
   

 

 

 
      6,054,765  
Massachusetts — 0.1%  

Massachusetts Development Finance Agency, Refunding RB, Tufts Medical Center, Series I, 6.75%, 01/01/21(b)

    595       633,259  
   

 

 

 
Michigan — 1.4%  

City of Detroit Michigan, GO:

   

5.00%, 04/01/34

    285       317,219  

5.00%, 04/01/35

    285       316,031  

5.00%, 04/01/36

    200       220,956  

5.00%, 04/01/37

    320       352,147  

5.00%, 04/01/38

    145       158,901  

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

    2,785       3,036,931  

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

    415       445,494  

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

    920       993,803  

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

    1,200       1,411,728  
   

 

 

 
      7,253,210  
Minnesota — 0.1%  

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

   

5.75%, 09/01/46

    195       214,246  

6.00%, 09/01/51

    290       321,796  
   

 

 

 
      536,042  
Missouri — 0.8%  

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

   

4.38%, 11/15/35

    685       747,171  

4.75%, 11/15/47

    760       825,139  

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

    2,315       2,401,720  
   

 

 

 
      3,974,030  
New Hampshire — 0.5%  

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

   

Series B, 4.63%, 11/01/42

    1,015       1,048,089  

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

    485       501,921  
 

 

 

22    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Hampshire (continued)  

New Hampshire Business Finance Authority, RB, The Vista Project, Series A(a):

   

5.25%, 07/01/39

  $ 400     $ 435,080  

5.63%, 07/01/46

    270       295,777  

5.75%, 07/01/54

    535       585,408  
   

 

 

 
      2,866,275  
New Jersey — 6.1%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,065       1,151,148  

5.25%, 11/01/44

    770       831,153  

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

    1,150       1,164,766  

New Jersey Economic Development Authority, RB, Friends of Vineland Public Charter School Projects, Series A, 5.25%, 11/01/54(a)(h)

    1,675       1,681,231  

New Jersey EDA, RB:

   

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

    2,155       2,423,190  

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

    2,160       2,550,636  

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

    165       190,397  

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

    260       294,830  

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

    2,245       2,559,884  

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

    1,530       1,724,570  

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

    500       519,625  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program Bonds, Series S, 5.25%, 06/15/43

    2,345       2,734,762  

Series BB, 4.00%, 06/15/50

    1,725       1,792,827  

Series BB, 5.00%, 06/15/50

    3,695       4,208,272  

Transportation Program, Series AA, 5.25%, 06/15/41

    1,140       1,275,717  

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

    5,970       6,595,656  
   

 

 

 
      31,698,664  
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       3,207,808  
   

 

 

 
New York — 5.6%  

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

   

6.25%, 06/01/41(a)

    5,300       5,380,666  

5.00%, 06/01/42

    3,155       3,155,000  

5.00%, 06/01/45

    1,185       1,184,964  

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

   

5.00%, 06/01/45

    2,655       2,815,335  

5.00%, 06/01/51

    1,900       2,035,622  

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

    1,261       1,369,549  

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

    2,890       2,891,272  

New York Liberty Development Corp., Refunding RB, 3 World Trade Center Project(a):

   

Class 1, 5.00%, 11/15/44

    4,705       5,172,301  

Class 2, 5.15%, 11/15/34

    455       502,939  

Class 2, 5.38%, 11/15/40

    1,080       1,213,866  

Class 3, 7.25%, 11/15/44

    1,565       1,884,855  
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     $ 1,398,947  
   

 

 

 
      29,005,316  
North Carolina — 0.5%  

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

   

7.75%, 03/01/21

    1,000       1,086,460  

7.75%, 03/01/21

    1,420       1,542,773  
   

 

 

 
      2,629,233  
Ohio — 3.3%  

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

   

6.00%, 06/01/42

    3,040       3,062,831  

Senior Turbo Term, 5.75%, 06/01/34

    6,745       6,744,730  

Senior Turbo Term, 5.88%, 06/01/47

    5,570       5,611,831  

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

    875       966,236  

Ohio Air Quality Development Authority, RB, AMG Vanadium Project, AMT, 5.00%, 07/01/49(a)

    840       927,696  
   

 

 

 
      17,313,324  
Oklahoma — 1.5%  

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

    750       857,640  

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

   

5.00%, 08/15/38

    2,990       3,525,060  

5.25%, 08/15/43

    2,690       3,193,568  
   

 

 

 
      7,576,268  
Oregon — 0.5%  

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

    1,765       1,938,270  

Oregon State Facilities Authority, RB, Howard Street Charter School Project, Series A(a):

   

5.00%, 06/15/29

    120       127,987  

5.00%, 06/15/39

    565       591,420  
   

 

 

 
      2,657,677  
Pennsylvania — 2.4%  

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

    2,140       2,239,895  

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

    2,000       2,178,080  

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

    1,800       1,890,360  

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

    1,135       1,179,197  

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

    1,855       2,120,896  

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

    2,710       2,850,947  
   

 

 

 
      12,459,375  
Puerto Rico — 9.6%  

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

    850       863,277  
 

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Puerto Rico (continued)  

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

   

Public Improvement, Series A, 5.25%, 07/01/22

  $ 145     $ 112,224  

Public Improvement, Series A, 5.13%, 07/01/31

    515       398,587  

Public Improvements, Series A, 5.25%, 07/01/26

    50       38,698  

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

   

Public Improvement, 5.00%, 07/01/18

    90       69,656  

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

    1,265       842,519  

Public Improvements, Series B, 6.00%, 07/01/39

    110       85,135  

Public Improvements, Series A, 6.50%, 07/01/40

    1,110       807,537  

Public Improvement, Series A, 5.00%, 07/01/41

    735       489,527  

Public Improvements, Series A, 5.75%, 07/01/41

    165       120,039  

Series A, 8.00%, 07/01/35

    2,205       1,329,666  

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

   

5.38%, 07/01/33

    500       386,978  

6.00%, 07/01/38

    750       580,467  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB:

   

5.00%, 07/01/33

    170       178,146  

5.13%, 07/01/37

    200       210,030  

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

   

6.00%, 07/01/38

    4,290       4,334,273  

6.00%, 07/01/44

    1,445       1,459,840  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB:

   

5.75%, 07/01/37

    3,355       3,573,041  

5.25%, 07/01/42

    920       961,520  

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

   

Series 2013-A, 7.00%, 07/01/33

    3,110       2,397,617  

Series 2013-A, 6.75%, 07/01/36

    1,140       878,869  

Series 2013-A, 7.00%, 07/01/43

    190       146,478  

Series A, 5.00%, 07/01/29

    660       496,261  

Series A, 5.00%, 07/01/42

    1,315       988,762  

Series A-3, 10.00%, 07/01/19

    323       273,347  

Series B-3, 10.00%, 07/01/19

    323       273,347  

Series C-1, 5.40%, 01/01/18

    887       725,493  

Series C-2, 5.40%, 07/01/18

    888       725,611  

Series C-3, 5.40%, 01/01/20

    90       73,347  

Series C-4, 5.40%, 07/01/20

    90       73,347  

Series CCC, 5.25%, 07/01/26

    260       195,497  

Series CCC, 5.25%, 07/01/28

    145       109,027  

Series TT, 5.00%, 07/01/25

    100       75,191  

Series TT, 5.00%, 07/01/26

    225       169,180  

Series TT, 5.00%, 07/01/32

    190       142,863  

Series WW, 5.50%, 07/01/19

    200       150,382  

Series WW, 5.50%, 07/01/38

    205       154,142  

Series WW, 5.50%, 07/01/49

    1,175       866,562  

Series WW, 5.50%, 07/01/49

    145       109,027  

Series XX, 5.25%, 07/01/27

    110       82,710  

Series XX, 5.25%, 07/01/35

    60       45,115  

Series XX, 5.75%, 07/01/36

    85       63,912  

Series XX, 5.25%, 07/01/40

    480       360,917  

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

   

Series AAA, 5.25%, 07/01/22

    2,545       1,913,611  

Series AAA, 5.25%, 07/01/29

    95       71,431  

Series UU, 1.00%, 07/01/19

    55       36,575  

Series UU, 1.16%, 07/01/19

    60       39,900  

Series UU, 1.00%, 07/01/20

    495       351,038  

Series UU, 2.11%, 07/01/31

    580       411,317  

Series ZZ, 5.00%, 07/01/19

    145       106,212  

Series ZZ, 5.25%, 07/01/19

    455       342,119  

Series ZZ, 5.25%, 07/01/21

    50       37,596  

Series ZZ, 5.25%, 07/01/24

    345       259,409  

Series ZZ, 5.25%, 07/01/26

    40       30,076  
Security   Par
(000)
    Value  
Puerto Rico (continued)  

Puerto Rico Public Buildings Authority, Refunding RB:

   

Government Facilities, Series F (GTD),(e)(f) 5.25%, 07/01/24

  $ 235     $ 201,719  

Series M, 10.00%, 07/01/34

    155       143,087  

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

   

CAB, Series A-1, 0.00%, 07/01/24(c)

    70       61,518  

CAB, Series A-1, 0.00%, 07/01/27(c)

    134       106,927  

CAB, Series A-1, 0.00%, 07/01/29(c)

    200       149,562  

CAB, Series A-1, 0.00%, 07/01/31(c)

    239       167,061  

CAB, Series A-1, 0.00%, 07/01/33(c)

    337       214,848  

CAB, Series A-1, 0.00%, 07/01/46(c)

    7,976       2,094,019  

CAB, Series A-1, 0.00%, 07/01/51(c)

    5,294       1,029,048  

Series A-1, 4.75%, 07/01/53

    3,822       3,941,934  

Series A-1, 5.00%, 07/01/58

    4,761       4,982,672  

Series A-2, 4.33%, 07/01/40

    1,729       1,751,857  

Series A-2, 4.78%, 07/01/58

    2,080       2,140,798  

Series A-2, 4.54%, 07/01/53

    21       21,270  

Series B-1, 4.55%, 07/01/40

    2,402       2,478,312  

Series B-1, 0.00%, 07/01/46(c)

    883       232,600  
   

 

 

 
      49,734,680  
Rhode Island — 2.0%  

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

    4,190       642,465  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/40

    980       1,089,221  

Series B, 4.50%, 06/01/45

    5,055       5,268,372  

Series B, 5.00%, 06/01/50

    3,330       3,547,449  
   

 

 

 
      10,547,507  
South Carolina — 0.7%  

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

    3,275       3,696,034  
   

 

 

 
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       1,034,798  

5.63%, 01/01/46

    1,085       1,201,887  
   

 

 

 
      2,236,685  
Texas — 7.3%  

Central Texas Regional Mobility Authority, Refunding RB, CAB(c):

   

0.00%, 01/01/28

    1,000       832,270  

0.00%, 01/01/29

    2,000       1,613,180  

0.00%, 01/01/30

    1,170       911,804  

0.00%, 01/01/33

    3,690       2,577,428  

0.00%, 01/01/34

    4,000       2,684,400  

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

   

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

    2,890       3,074,180  

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

    910       1,015,423  

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)

    475       558,871  

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

    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       945,168  
 

 

 

24    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

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

  $ 890     $ 964,404  

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

   

5.88%, 04/01/36

    1,210       1,342,108  

6.00%, 04/01/45

    1,845       2,037,157  

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

    1,085       1,109,261  

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

   

5.50%, 08/15/35

    290       328,480  

5.75%, 08/15/45

    580       657,186  

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

   

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

    2,895       1,851,633  

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

    900       931,635  

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

   

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

    3,775       3,917,582  

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

    3,000       3,023,880  

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

   

0.00%, 08/01/46

    1,420       438,439  

0.00%, 08/01/47

    2,120       621,860  

0.00%, 08/01/48

    2,235       622,336  

0.00%, 08/01/49

    2,100       560,679  

0.00%, 08/01/50

    3,015       750,102  

0.00%, 08/01/51

    1,770       415,313  

0.00%, 08/01/52

    1,770       392,090  

0.00%, 08/01/53

    160       33,451  
   

 

 

 
      37,990,320  
Utah — 0.6%  

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

    2,950       2,956,991  
   

 

 

 
Virginia — 2.8%  

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

   

5.00%, 03/01/35

    495       524,903  

5.00%, 03/01/45

    505       525,786  

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

   

6.63%, 03/01/26

    1,485       1,572,867  

6.88%, 03/01/36

    1,300       1,372,579  

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

   

4.00%, 01/01/29

    300       324,645  

5.00%, 01/01/34

    485       536,895  

4.38%, 01/01/39

    725       783,116  

5.00%, 01/01/49

    955       1,032,517  

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

    2,370       2,370,000  

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

    535       574,922  

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

    4,440       4,914,858  
   

 

 

 
      14,533,088  
Security   Par
(000)
    Value  
Washington — 0.8%  

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

  $ 1,455     $ 1,526,310  

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

    1,495       1,555,084  

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

   

5.75%, 01/01/35

    315       334,347  

6.00%, 01/01/45

    850       895,628  
   

 

 

 
      4,311,369  
Wisconsin — 1.5%  

Public Finance Authority, RB:

   

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

    605       681,369  

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

    605       678,405  

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

    900       1,010,421  

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

    570       644,966  

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

    655       661,720  

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

    175       203,957  

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

    530       609,367  

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

    355       405,964  

Traders Point Christian Schools, Series A, 5.38%, 06/01/44(a)

    555       580,769  

Traders Point Christian Schools, Series A, 5.50%, 06/01/54(a)

    680       709,315  

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

    1,065       1,205,665  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Benevolent Corporation Cedar Community, 5.00%, 06/01/41

    225       245,543  
   

 

 

 
      7,637,461  
   

 

 

 

Total Municipal Bonds — 89.3%
(Cost — $431,982,220)

 

    463,184,017  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(j)

 

Colorado — 2.2%  

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

    11,468       11,536,969  
   

 

 

 
Illinois — 2.9%  

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

    7,180       7,733,075  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C:

   

4.00%, 02/15/27(b)

    4       4,083  

4.00%, 02/15/41

    1,495       1,627,560  

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

    5,056       5,806,412  
   

 

 

 
      15,171,130  
Massachusetts — 0.5%  

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

    2,268       2,446,544  
   

 

 

 
New York — 14.4%  

City of New York Housing Development Corp., RB, M/F, Series C-1A:

   

4.15%, 11/01/39

    1,893       1,974,956  

4.20%, 11/01/44

    3,470       3,620,026  

4.30%, 11/01/47

    2,840       2,962,391  
 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

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     $ 9,461,196  

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

   

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

    14,181       15,967,240  

Series HH, 5.00%, 06/15/31(k)

    8,610       9,137,535  

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

   

5.75%, 02/15/21(b)

    2,798       2,955,290  

5.75%, 02/15/47

    1,721       1,818,004  

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

    18,104       19,588,518  

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

    6,600       7,156,241  
   

 

 

 
      74,641,397  
Pennsylvania — 0.6%  

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

    2,505       3,011,561  
   

 

 

 
Rhode Island — 0.3%  

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

    1,710       1,787,361  
   

 

 

 
Texas — 0.5%  

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

    2,271       2,362,628  
   

 

 

 
Washington — 1.6%  

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

    7,966       8,417,101  
   

 

 

 
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       1,230,458  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.2%
(Cost — $114,766,625)

 

    120,605,149  
 

 

 

 

Total Long-Term Investments — 112.5%
(Cost — $546,748,845)

 

    583,789,166  
 

 

 

 

Security

  Shares     Value  

Short-Term Securities — 0.3%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 2.03%(l)(m)

    1,305,711     $ 1,305,841  
   

 

 

 

Total Short-Term Securities — 0.3%
(Cost — $1,305,841)

 

    1,305,841  
 

 

 

 

Total Investments — 112.8%
(Cost — $548,054,686)

 

    585,095,007  

Other Assets Less Liabilities — 1.1%

 

    5,695,891  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (13.9)%

 

    (72,055,459
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 518,735,439  
 

 

 

 

 

(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) 

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.

(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) 

When-issued security.

(i) 

Variable rate security. Rate shown is the rate in effect as of period end.

(j) 

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.

(k) 

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 November 15, 2019 to December, 15, 2020, is $11,849,809. See Note 4 of the Notes to Financial Statements for details.

(l) 

Annualized 7-day yield as of period end.

 
(m) 

During the six months ended October 31, 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
04/30/19
     Net
Activity
     Shares
Held at
10/31/19
     Value at
10/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     767,387        538,324        1,305,711      $ 1,305,841      $ 6,751      $ 438      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     14          12/19/19        $ 1,824        $ 7,622  

Long U.S. Treasury Bond

     64          12/19/19          10,328          110,496  

5-Year U.S. Treasury Note

     16          12/31/19          1,907          7,855  
                 

 

 

 
                  $ 125,973  
                 

 

 

 

 

 

26    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
    

Interest

Rate
Contracts

     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 125,973      $      $ 125,973  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements 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 six months ended October 31, 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

   $      $      $      $      $ (1,890,370    $      $ (1,890,370
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 227,816      $      $ 227,816  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 18,043,777  

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

Fair Value Hierarchy as of Period End

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

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments(a)

   $      $ 583,789,166        $         —        $ 583,789,166  

Short-Term Securities

     1,305,841                            1,305,841  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,305,841        $ 583,789,166        $        $ 585,095,007  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 125,973        $      $        $ 125,973  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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, TOB Trust Certificates of $71,659,281 are categorized as Level 2 within the disclosure hierarchy.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (unaudited)

October 31, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 118.0%

 

Alabama — 0.3%  

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

  $ 1,010     $ 1,169,721  
   

 

 

 
Alaska — 0.3%  

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

    990       1,058,152  
   

 

 

 
Arizona — 1.2%  

Arizona IDA, RB(a):

   

Leman Academy of Excellence-East Tucson And Central Tucson Projects, Series A, 5.00%, 07/01/39

    540       560,974  

Leman Academy of Excellence-East Tucson And Central Tucson Projects, Series A, 5.00%, 07/01/49

    610       633,363  

Leman Academy of Excellence-East Tucson And Central Tucson Projects, Series A, 5.00%, 07/01/54

    470       483,879  

Odyssey Preparatory Academy Project, 5.00%, 07/01/54

    615       641,549  

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

   

HonorHealth, 5.00%, 09/01/36

    645       784,301  

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

    745       818,218  

County of Pima IDA, Refunding RB, Ameican Leadership Academy Project,
5.00%, 06/15/49(a)

    525       554,101  
   

 

 

 
      4,476,385  
California — 14.2%  

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

    5,000       5,725,100  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 08/15/20(b)

    1,200       1,245,180  

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

    1,090       1,223,133  

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

    1,480       1,605,163  

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

    975       1,036,230  

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

    795       953,428  

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

   

Series A, 5.00%, 03/01/36

    410       486,830  

Series A, 5.00%, 03/01/37

    455       539,557  

Series A-1, 5.75%, 03/01/34

    850       896,121  

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

    2,175       2,317,332  

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

    12,740       10,223,085  

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

    1,480       1,509,600  

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

    2,500       2,456,625  

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

    3,750       2,488,200  

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

    5,000       2,996,650  
Security   Par
(000)
    Value  
California (continued)  

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

   

0.00%, 08/01/31

  $ 2,145     $ 1,296,567  

0.00%, 08/01/32

    2,680       1,516,800  

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

   

Series C, 0.00%, 07/01/38

    1,600       999,552  

Series G, 0.00%, 07/01/34

    650       345,078  

Series G, 0.00%, 07/01/35

    690       344,655  

Series G, 0.00%, 07/01/36

    1,035       486,409  

Series G, 0.00%, 07/01/37

    690       305,297  

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

   

0.00%, 07/01/30

    5,000       4,040,150  

0.00%, 07/01/31

    1,280       1,001,626  

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

   

5.00%, 08/01/21

    700       747,887  

5.00%, 08/01/21

    600       641,046  

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

    5,500       3,531,110  
   

 

 

 
      50,958,411  
Colorado — 1.8%  

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

    1,310       1,421,874  

Colorado Health Facilities Authority, RB, Series A:

   

Adventist Health System/Sunbelt Obligated Group, 4.00%, 11/15/46

    1,070       1,142,610  

Commonspirit Health, 4.00%, 08/01/49

    1,200       1,283,196  

Denver Health & Hospital Authority, Refunding RB, Series A:

   

4.00%, 12/01/39

    305       336,638  

4.00%, 12/01/40

    230       253,156  

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

    2,000       2,046,820  
   

 

 

 
      6,484,294  
Connecticut — 1.1%  

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

   

Sub-Series A-1, 3.85%, 11/15/43

    360       385,369  

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

    770       843,990  

Series A-1, 3.80%, 11/15/39

    470       501,462  

Sub-Series B-1, 4.00%, 05/15/45

    1,445       1,528,593  

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

    615       755,017  
   

 

 

 
      4,014,431  
District of Columbia — 0.3%  

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

    1,215       1,218,341  
   

 

 

 
Florida — 11.1%  

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

    1,600       1,776,512  

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

   

6.00%, 11/15/19(b)

    5       5,007  

6.00%, 11/15/37

    1,445       1,447,081  

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

   

5.63%, 10/01/26

    960       1,030,896  

5.38%, 10/01/32

    3,160       3,368,686  
 

 

 

28    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

County of Miami-Dade Florida, RB, Seaport Department:

   

Series A, 6.00%, 10/01/38

  $ 2,025     $ 2,343,897  

Series B, AMT, 6.00%, 10/01/30

    640       739,706  

Series B, AMT, 6.25%, 10/01/38

    415       480,192  

Series B, AMT, 6.00%, 10/01/42

    660       760,822  

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

    480       551,717  

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

    190       215,745  

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

    2,995       3,427,658  

County of Miami-Dade Florida Water & Sewer System Revenue, Refunding RB, Series B, 4.00%, 10/01/49(e)

    3,090       3,422,484  

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

   

5.00%, 08/01/41

    560       616,347  

5.00%, 08/01/47

    1,620       1,776,119  

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

    495       523,378  

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

   

5.00%, 10/01/21(b)

    30       32,158  

5.00%, 10/01/31

    1,970       2,105,024  

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

    1,750       2,098,512  

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

   

5.13%, 06/01/27

    2,000       2,113,740  

5.38%, 10/01/29

    1,050       1,126,282  

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

   

Series A, 5.00%, 10/01/47

    3,970       4,656,135  

Sub-Series A, 5.00%, 10/01/52

    1,490       1,739,515  

Lakewood Ranch Stewardship District, Special Assessment Bonds, NorthEast Sector
Project(a)(e):

   

3.85%, 05/01/39

    450       449,159  

4.00%, 05/01/49

    675       666,428  

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

    2,065       2,340,492  
   

 

 

 
      39,813,692  
Georgia — 3.9%  

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

    500       588,805  

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

    1,250       1,331,812  

Georgia Housing & Finance Authority, RB, S/F Housing, Series B, 3.20%, 12/01/44

    915       926,099  

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

   

5.00%, 05/15/43

    685       799,046  

4.00%, 04/01/48(f)

    265       287,220  

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

    7,475       9,404,447  

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

   

5.00%, 04/01/33

    140       159,089  

5.00%, 04/01/44

    380       426,858  
   

 

 

 
      13,923,376  
Security   Par
(000)
    Value  
Illinois — 13.2%  

Chicago Board of Education, GO, Refunding, Series A:

   

CAB, 0.00%, 12/01/25(c)

  $ 250     $ 210,655  

5.00%, 12/01/29

    660       782,509  

5.00%, 12/01/30

    790       933,353  

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

    1,005       1,109,781  

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

   

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

    4,290       4,510,892  

3rd Lien, Series A, 5.75%, 01/01/39

    820       857,761  

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

    2,900       3,469,299  

City of Chicago Illinois Transit Authority, RB:

   

5.25%, 12/01/49

    900       1,019,952  

Sales Tax Receipts, 5.25%, 12/01/36

    595       635,353  

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

    45       47,753  

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

   

5.75%, 08/15/34

    650       696,865  

6.00%, 08/15/41

    1,000       1,071,980  

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

   

4.13%, 08/15/37

    740       781,211  

5.00%, 08/15/44

    350       388,465  

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

    1,365       1,489,352  

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

    1,785       2,076,758  

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

    9,145       10,131,197  

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

   

0.00%, 12/15/26

    5,000       4,183,600  

0.00%, 12/15/33

    9,950       6,397,750  

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

    3,450       1,451,139  

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

    675       724,626  

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

    1,275       1,345,036  

State of Illinois, GO:

   

5.25%, 02/01/33

    830       900,998  

5.50%, 07/01/33

    820       897,105  

5.25%, 02/01/34

    830       899,454  

5.50%, 07/01/38

    445       484,997  
   

 

 

 
      47,497,841  
Indiana — 0.8%  

Indiana Finance Authority, RB, Series A:

   

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

    1,100       1,173,777  

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

    515       558,548  

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

    890       969,353  
   

 

 

 
      2,701,678  
Iowa — 0.2%  

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

   

5.60%, 12/01/26

    265       270,931  

5.70%, 12/01/27

    120       122,688  

5.80%, 12/01/29

    80       81,794  

5.85%, 12/01/30

    85       86,907  
   

 

 

 
      562,320  
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Louisiana — 1.7%  

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

  $ 2,820     $ 3,167,593  

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

    2,700       3,111,102  
   

 

 

 
      6,278,695  
Maine — 0.3%  

State of Maine Housing Authority, RB:

   

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

    710       775,618  

S/F Housing, Mortgage Purchase Bonds, Series B, 3.35%, 11/15/44

    200       205,328  
   

 

 

 
      980,946  
Maryland — 0.5%  

City of Baltimore Maryland, Refunding, Tax Allocation Bonds, Senior Lien, Harbor Point Project, Series A, 3.63%, 06/01/46(a)

    740       722,136  

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

    1,150       1,248,567  
   

 

 

 
      1,970,703  
Massachusetts — 2.6%  

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

    2,090       2,382,495  

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

    3,235       3,636,011  

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

    55       57,355  

Massachusetts HFA, Refunding RB, AMT:

   

Series A, 4.45%, 12/01/42

    795       830,846  

Series C, 5.35%, 12/01/42

    315       318,824  

Massachusetts School Building Authority, RB:

   

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

    1,280       1,428,467  

Sub-Series B, 4.00%, 02/15/43

    755       805,895  
   

 

 

 
      9,459,893  
Michigan — 5.3%  

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

    1,700       1,806,964  

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

    615       671,826  

Michigan Finance Authority, Refunding RB:

   

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

    1,175       1,261,339  

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

    20       21,542  

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

    2,945       3,249,159  

Michigan State Housing Development Authority, RB, M/F Housing, Series A-1, 3.35%, 10/01/49

    435       443,335  

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

    640       780,589  

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

    1,640       1,936,217  

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

    1,065       1,192,054  

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

   

Series I-A, 5.38%, 10/15/36

    145       155,698  

Series I-A, 5.38%, 10/15/41

    700       749,203  

Series II-A (AGM), 5.25%, 10/15/36

    900       961,119  

State of Michigan Housing Development Authority, RB:

   

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

    1,885       2,007,374  

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

    1,855       1,983,663  

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

    1,465       1,598,051  
Security   Par
(000)
    Value  
Michigan (continued)  

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

  $ 380     $ 427,086  
   

 

 

 
      19,245,219  
Missouri — 0.3%  

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

    1,015       1,057,549  
   

 

 

 
Nebraska — 1.7%  

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

   

5.00%, 09/01/32

    5,010       5,432,443  

5.25%, 09/01/37

    750       817,373  
   

 

 

 
      6,249,816  
Nevada — 1.2%  

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

   

5.25%, 07/01/42

    500       502,705  

(AGM), 5.25%, 07/01/39

    3,800       3,821,926  
   

 

 

 
      4,324,631  
New Jersey — 9.6%  

New Jersey EDA, RB:

   

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

    895       1,006,383  

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

    685       767,714  

Series WW, 5.25%, 06/15/33

    155       175,348  

Series WW, 5.00%, 06/15/34

    205       228,569  

Series WW, 5.00%, 06/15/36

    925       1,028,184  

Series WW, 5.25%, 06/15/40

    265       298,806  

New Jersey EDA, Refunding RB:

   

Series B, 5.50%, 06/15/30

    5,360       6,346,454  

Sub-Series A, 4.00%, 07/01/32

    1,040       1,109,503  

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

   

Series 1, 5.50%, 12/01/26

    255       274,082  

Series 1, 5.75%, 12/01/27

    1,625       1,754,317  

Series B, 3.25%, 12/01/39

    2,695       2,750,113  

Sub-Series C, 3.63%, 12/01/49

    725       737,941  

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

    970       1,015,648  

New Jersey Transportation Trust Fund Authority, RB:

   

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

    1,490       1,652,619  

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

    1,885       2,061,832  

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

    3,150       3,296,569  

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

    1,150       1,272,912  

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

    1,000       1,055,090  

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

    520       539,708  

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

    735       817,452  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB:

   

Series A, 5.00%, 06/01/34

    920       1,107,616  

Series A, 5.00%, 06/01/36

    1,365       1,632,404  

Series A, 4.00%, 06/01/37

    870       946,821  

Sub-Series B, 5.00%, 06/01/46

    2,255       2,491,324  
   

 

 

 
      34,367,409  
New Mexico — 0.1%  

City of Santa Fe, RB, EL Castillo Retirement Residences Project, Series A, 5.00%, 05/15/44(e)

    200       221,244  
   

 

 

 
 

 

 

30    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York — 3.1%  

City of New York New York Municipal Water Finance Authority, Refunding RB, Second General Resolution, Fiscal 2012, Series BB, 5.25%, 12/15/21(b)

  $ 1,425     $ 1,550,143  

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

    1,130       1,255,893  

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

    1,480       1,636,214  

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

   

5.75%, 02/15/21(b)

    430       455,624  

5.75%, 02/15/47

    270       283,638  

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

    2,715       3,029,180  

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

   

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

    625       713,806  

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

    1,250       1,417,300  

Series 207, 4.00%, 09/15/43

    460       505,356  

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

    170       178,043  
   

 

 

 
      11,025,197  
Ohio — 2.9%  

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

    2,945       2,967,117  

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

    460       505,439  

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

    530       586,699  

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

    320       340,000  

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

    10,000       6,152,500  
   

 

 

 
      10,551,755  
Oklahoma — 0.2%  

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

    555       612,165  
   

 

 

 
Oregon — 0.8%  

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

    440       509,168  

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

    995       507,898  

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

    1,150       1,340,566  

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

    420       449,854  
   

 

 

 
      2,807,486  
Pennsylvania — 11.2%  

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

   

5.00%, 07/01/35

    755       899,031  

5.00%, 07/01/47

    1,610       1,874,861  

Commonwealth Financing Authority, RB:

   

Series B, 5.00%, 06/01/42

    1,600       1,719,696  

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

    1,050       1,169,773  

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

    950       1,021,982  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 06/30/42

  $ 1,035     $ 1,170,813  

Pennsylvania Bridge Finco LP, AMT, 5.00%, 12/31/34

    7,290       8,409,161  

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

    1,305       1,484,986  

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

    940       1,027,580  

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

    2,330       2,650,258  

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

   

Series 127-B, 3.88%, 10/01/38

    885       949,463  

Series 128B, 3.85%, 04/01/38

    1,970       2,119,582  

Pennsylvania Turnpike Commission, RB:

   

Series A, 5.00%, 12/01/38

    620       708,573  

Series A-1, 5.00%, 12/01/41

    2,385       2,792,382  

Series B, 5.00%, 12/01/40

    935       1,089,425  

Series C, 5.50%, 12/01/23(b)

    555       650,860  

Series C, 5.00%, 12/01/39

    3,275       3,742,637  

Sub-Series A-1, 5.00%, 12/01/41

    2,430       2,793,309  

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

    575       604,567  

Pennsylvania Turnpike Commission, Refunding RB:

   

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

    2,070       2,281,057  

Series A-1, 5.00%, 12/01/40

    765       883,912  

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

    305       356,023  
   

 

 

 
      40,399,931  
Puerto Rico — 3.4%  

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

   

Series A-1, 4.75%, 07/01/53

    1,428       1,472,811  

Series A-1, 5.00%, 07/01/58

    2,493       2,609,074  

Series A-2, 4.33%, 07/01/40

    6,434       6,519,057  

Series A-2, 4.78%, 07/01/58

    548       564,018  

Series B-1, 4.75%, 07/01/53

    476       490,547  

Series B-2, 4.78%, 07/01/58

    462       474,146  
   

 

 

 
      12,129,653  
Rhode Island — 1.2%  

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

    465       546,580  

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

   

4.50%, 06/01/45

    1,055       1,099,531  

5.00%, 06/01/50

    2,630       2,801,739  
   

 

 

 
      4,447,850  
South Carolina — 4.6%  

South Carolina Jobs EDA, Refunding RB, Series A:

   

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

    115       125,518  

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

    2,490       2,966,885  

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

    530       620,434  

State of South Carolina Ports Authority, RB, AMT, 5.25%, 07/01/25(b)

    2,330       2,806,066  

State of South Carolina Public Service Authority, RB:

   

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

    6,225       7,053,236  

Series E, 5.50%, 12/01/53

    745       840,777  
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
South Carolina (continued)  

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

  $ 2,080     $ 2,315,830  
   

 

 

 
      16,728,746  
South Dakota — 1.3%  

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

   

4.00%, 07/01/37

    1,225       1,330,583  

4.00%, 07/01/42

    3,000       3,257,820  
   

 

 

 
      4,588,403  
Tennessee — 0.7%  

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

    845       898,750  

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

    1,245       1,436,867  
   

 

 

 
      2,335,617  
Texas — 12.6%  

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

    1,395       1,553,151  

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

    3,080       3,343,525  

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

    575       636,128  

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

    2,130       1,090,794  

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

    1,880       2,299,879  

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

    750       852,165  

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

    3,160       3,688,131  

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

   

Series D, 5.00%, 11/01/38

    1,975       2,095,139  

Series D, 5.00%, 11/01/42

    1,500       1,587,315  

Series H, 5.00%, 11/01/32

    3,000       3,196,830  

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

    975       1,113,645  

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

    3,420       1,592,831  

North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49

    1,225       1,358,157  

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

   

0.00%, 09/15/35

    4,990       2,500,189  

0.00%, 09/15/36

    11,525       5,451,671  

0.00%, 09/15/37

    8,245       3,657,070  

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

    1,355       1,633,656  

Texas Department of Housing & Community Affairs, RB, Series A (Ginnie Mae), S/F Housing:

   

Mortgage, 4.25%, 09/01/43

    390       420,904  

3.75%, 09/01/49

    860       912,254  

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

   

5.00%, 12/15/31

    1,190       1,295,589  

5.00%, 12/15/32

    3,440       3,740,587  
Security   Par
(000)
    Value  
Texas (continued)  

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

  $ 1,275     $ 1,428,510  
   

 

 

 
      45,448,120  
Utah — 0.6%  

City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/48

    445       524,588  

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

    1,240       1,456,864  

Utah Charter School Finance Authority, RB, Wallace Stegner Academy Project, Series A, 5.00%, 06/15/49(a)

    200       210,226  
   

 

 

 
      2,191,678  
Virginia — 0.2%  

Virginia Small Business Financing Authority, RB, 95 Express Lanes LLC Project, AMT, 5.00%, 07/01/49

    750       795,653  
   

 

 

 
Washington — 1.8%  

County of Snohomish Housing Authority, Refunding RB, 4.00%, 04/01/44

    485       519,920  

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

    1,955       2,282,169  

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

    1,015       1,142,616  

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

   

4.00%, 10/01/45

    705       754,428  

Series A, 5.00%, 04/01/20(b)

    525       533,111  

Series A, 5.25%, 04/01/20(b)

    625       635,313  

Washington State Housing Finance Commission, RB, Transforming Age Project, Series A, 5.00%, 01/01/55(a)

    555       603,440  
   

 

 

 
      6,470,997  
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       720,739  
   

 

 

 
Wisconsin — 1.5%  

Public Finance Authority, Refunding RB, Penick Village Obligation Group, 5.00%, 09/01/49(a)(e)

    335       361,666  

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

    1,375       1,376,595  

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

   

4.15%, 11/01/48

    2,150       2,318,883  

4.45%, 05/01/57

    1,160       1,248,218  
   

 

 

 
      5,305,362  
   

 

 

 

Total Municipal Bonds — 118.0%
(Cost — $380,371,154)

 

    424,594,099  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(g)

 

Arizona — 0.5%  

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

    1,710       1,878,059  
   

 

 

 
California — 1.7%  

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

    3,827       4,219,208  

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

    1,571       1,946,081  
   

 

 

 
    6,165,289  
 

 

 

32    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Colorado — 2.8%  

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

  $ 2,324     $ 2,802,029  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.00%, 02/01/21(b)

    7,000       7,322,630  
   

 

 

 
    10,124,659  
Connecticut — 0.4%  

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

    1,381       1,613,592  
   

 

 

 
District of Columbia — 0.6%  

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

    1,005       1,007,868  

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

    1,031       1,110,745  
   

 

 

 
    2,118,613  
Florida — 4.9%  

County of Broward Florida Airport Facilities Revenue, ARB, Senior Bond, Series B, AMT, 4.00%, 09/01/49

    2,296       2,481,130  

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

    4,480       4,853,811  

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

    4,621       4,780,029  

Greater Orlando Aviation Authority, ARB, Series A, AMT, 4.00%, 10/01/49

    2,370       2,602,236  

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

    2,640       3,088,985  
   

 

 

 
      17,806,191  
Georgia — 0.6%  

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

    2,041       2,119,535  
   

 

 

 
Illinois — 1.9%  

State of Illinois Toll Highway Authority, RB:

   

Series A, 5.00%, 01/01/38

    2,138       2,344,467  

Series A, 5.00%, 01/01/40

    2,730       3,135,807  

Series B, 5.00%, 01/01/40

    1,050       1,212,012  
   

 

 

 
      6,692,286  
Kansas — 1.6%  

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

    4,723       5,741,152  
   

 

 

 
Louisiana — 0.5%  

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

    1,515       1,638,291  
   

 

 

 
Maine — 0.3%  

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

    957       1,053,473  
   

 

 

 
Maryland — 2.4%  

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

    1,061       1,255,747  

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

    2,808       3,320,494  

County of Montgomery Housing Opportunites Commission, RB, S/F Housing, Series C, AMT, 3.30%, 07/01/39

    4,023       4,067,604  
   

 

 

 
      8,643,845  
Massachusetts — 0.5%  

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

    1,461       1,657,147  
   

 

 

 
Security   Par
(000)
    Value  
Michigan — 4.6%  

Michigan Finance Authority, RB:

   

Beaumont Health Credit Group, Series A, 5.00%, 11/01/44

  $ 1,970     $ 2,248,922  

Multi Model- McLaren Health Care, 4.00%, 02/15/47

    3,553       3,897,103  

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

    7,530       8,020,655  

Michigan St Bldg Auth Revenue, Refunding RB, Facilities Program, Series I, 4.00%, 04/15/54

    1,242       1,351,721  

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

    870       1,017,361  
   

 

 

 
      16,535,762  
Nebraska — 0.7%  

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

    2,456       2,596,615  
   

 

 

 
Nevada — 2.2%  

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

    3,061       3,718,372  

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

    3,460       4,067,057  
   

 

 

 
      7,785,429  
New Jersey — 2.2%  

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

    800       949,952  

New Jersey State Turnpike Authority, Refunding RB:

   

Series B, 4.00%, 01/01/37

    2,308       2,585,742  

Series G, 4.00%, 01/01/43

    2,146       2,377,611  

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

    1,840       1,928,268  
   

 

 

 
      7,841,573  
New York — 6.8%  

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

    2,180       2,380,713  

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

    1,680       1,750,594  

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

    3,058       3,688,178  

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

   

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

    5,680       6,395,904  

Series DD, 5.00%, 06/15/35

    1,665       1,922,925  

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

    3,470       3,989,875  

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

    1,498       1,784,267  

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

    2,241       2,718,465  
   

 

 

 
      24,630,921  
Ohio — 1.5%  

Northeast Ohio Regional Sewer District, Refunding RB:

   

4.00%, 11/15/49(h)

    2,115       2,263,790  

4.00%, 11/15/43

    2,912       3,233,315  
   

 

 

 
      5,497,105  
Pennsylvania — 1.1%  

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

    900       1,041,768  

Pennsylvania Housing Finance Agency, RB, S/F Housing, Series 129, 3.40%, 10/01/49

    1,542       1,586,446  
 

 

 

SCHEDULES OF INVESTMENTS      33  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Pennsylvania (continued)  

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

  $ 1,229     $ 1,306,727  
   

 

 

 
      3,934,941  
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       1,561,114  
   

 

 

 
South Carolina — 0.6%  

South Carolina Ports Authority, ARB, Series B, AMT, 4.00%, 07/01/49(h)

    1,980       2,143,568  
   

 

 

 
Texas — 2.9%  

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

    1,470       1,539,428  

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

    1,229       1,485,446  

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

    3,440       4,046,747  

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

    1,874       1,968,349  

Texas Department of Housing & Community Affairs, RB, S/F Housing, Series A (Ginnie Mae):

   

3.63%, 09/01/44

    816       863,723  

3.75%, 09/01/49

    579       612,884  
   

 

 

 
      10,516,577  
Virginia — 1.7%  

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

    2,234       2,782,264  

Virginia Housing Development Authority, RB, S/F Housing, Series C (Ginnie Mae), 3.70%, 08/01/48

    3,045       3,197,984  
   

 

 

 
      5,980,248  
Washington — 1.8%  

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

    2,530       2,772,197  

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

    2,880       3,612,096  
   

 

 

 
    6,384,293  
Security   Par
(000)
    Value  
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     $ 2,154,280  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 45.8%
(Cost — $156,651,836)

 

    164,814,558  
 

 

 

 

Total Long-Term Investments — 163.8%
(Cost — $537,022,990)

 

    589,408,657  
 

 

 

 
     Shares         
Short-Term Securities — 1.6%            

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.04%(i)(j)

    5,711,485       5,712,056  
   

 

 

 

Total Short-Term Securities — 1.6%
(Cost — $5,712,044)

 

    5,712,056  
 

 

 

 

Total Investments — 165.4%
(Cost — $542,735,034)

 

    595,120,713  

Other Assets Less Liabilities — 0.7%

 

    2,361,786  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (26.5)%

 

    (95,275,678

VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (39.6)%

 

    (142,332,149
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 359,874,672  
 

 

 

 

 

(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) 

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.

(e) 

When-issued security.

(f) 

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

(g) 

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 expires between July 15, 2021 to December 01, 2030, is $12,119,420. See Note 4 of the Notes to Financial Statements for details.

(i) 

Annualized 7-day yield as of period end.

 
(j) 

During the six months ended October 31, 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
04/30/19
     Net
Activity
     Shares
Held at
10/31/19
     Value at
10/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     580,450        5,131,035        5,711,485      $ 5,712,056      $ 22,161      $ 656      $ 12  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

 

 

34    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

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

     62          12/19/19        $ 8,078        $ 5,122  

Long U.S. Treasury Bond

     118          12/19/19          19,042          21,201  

5-Year U.S. Treasury Note

     23          12/31/19          2,742          1,688  
                 

 

 

 
                  $ 28,011  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 28,011      $      $ 28,011  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 six months ended October 31, 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

   $      $      $      $      $ (2,932,765    $      $ (2,932,765
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 244,255      $      $ 244,255  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 29,440,605  

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)

   $      $ 589,408,657        $        $ 589,408,657  

Short-Term Securities

     5,712,056                            5,712,056  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 5,712,056        $ 589,408,657        $        $ 595,120,713  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 28,011        $      $        $ 28,011  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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.

 

 

 

SCHEDULES OF INVESTMENTS      35  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount (Add if fund holds reverse repos: or face value, including accrued interest,) 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

   $        $ (94,889,804      $        $ (94,889,804

VRDP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (237,389,804      $             —        $ (237,389,804
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

36    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited)

October 31, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 119.2%

 

Alabama — 2.1%  

County of Jefferson Alabama Sewer, Refunding RB:

   

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

  $ 570     $ 643,426  

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

    1,090       1,241,412  

Sub-Lien, Series D, 6.00%, 10/01/42

    1,000       1,177,960  

Sub-Lien, Series D, 7.00%, 10/01/51

    1,545       1,867,318  
   

 

 

 
      4,930,116  
Arizona — 2.9%  

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

    1,230       1,305,547  

Salt Verde Financial Corp., RB, Senior:

   

5.00%, 12/01/32

    2,000       2,586,020  

5.00%, 12/01/37

    2,360       3,165,232  
   

 

 

 
      7,056,799  
Arkansas — 0.8%  

Arkansas Development Finance Authority, RB, Big River Steel Project, AMT, 4.50%, 09/01/49(a)

    1,810       1,916,374  
   

 

 

 
California — 7.2%  

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

    1,545       2,365,519  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20(b)

    2,200       2,285,030  

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

    875       987,630  

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

   

5.25%, 08/15/39

    105       117,724  

5.25%, 08/15/49

    265       294,343  

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

    165       194,352  

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

    1,025       1,092,650  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A, 5.00%, 12/01/46(a)

    330       368,792  

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

    255       296,751  

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

    1,950       2,007,232  

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

    2,405       2,302,258  

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

    3,475       2,899,227  

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

   

Series I, 5.00%, 11/01/38

    550       620,692  

Sub-Series I-1, 6.38%, 11/01/19(b)

    820       820,000  

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

    540       540,599  
   

 

 

 
      17,192,799  
Colorado — 2.8%  

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

    1,260       1,615,622  

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

    1,455       1,488,232  

Colorado Health Facilities Authority, Refunding RB, Commonspirit Health:

   

Series A, 4.00%, 08/01/44

    220       237,123  

Series A-2, 4.00%, 08/01/49

    1,065       1,138,837  
Security   Par
(000)
    Value  
Colorado (continued)  

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

  $ 710     $ 726,621  

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

    1,425       1,449,966  
   

 

 

 
      6,656,401  
Delaware — 1.8%  

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

    790       822,840  

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

    840       957,827  

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

    2,430       2,499,328  
   

 

 

 
      4,279,995  
District of Columbia — 5.9%  

District of Columbia, Refunding RB:

   

Georgetown University, 5.00%, 04/01/35

    315       378,857  

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

    260       307,525  

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

    1,695       1,997,642  

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

    1,520       1,599,542  

Metropolitan Washington Airports Authority, Refunding ARB:

   

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

    1,475       1,575,757  

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

    13,485       8,298,399  
   

 

 

 
      14,157,722  
Florida — 4.2%  

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

    2,375       2,382,244  

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

    960       1,092,989  

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

    2,620       2,719,953  

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

    2,095       2,330,960  

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

    1,380       1,479,484  
   

 

 

 
      10,005,630  
Georgia — 3.7%  

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

    2,615       2,836,438  

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

    370       435,716  

DeKalb Georgia Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/19(b)

    585       585,720  

Georgia Housing & Finance Authority, Refunding RB, S/F Housing, Mortgage Bonds, Series A, 3.60%, 12/01/44

    1,045       1,081,251  

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

   

5.00%, 05/15/35

    360       466,351  

5.00%, 05/15/36

    360       469,519  

5.00%, 05/15/37

    400       525,020  

5.00%, 05/15/38

    220       289,164  

5.00%, 05/15/49

    725       977,242  

Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project, 4.00%, 01/01/49

    1,135       1,198,049  
   

 

 

 
      8,864,470  
Hawaii — 0.4%  

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

    945       969,938  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      37  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Idaho — 0.3%  

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

  $ 540     $ 643,837  
   

 

 

 
Illinois — 15.4%  

Chicago Board of Education, GO, Series H, Series C, Series D:

   

Dedicated Revenues, 5.00%, 12/01/36

    350       399,774  

Project, 5.25%, 12/01/35

    1,075       1,185,757  

Chicago Board of Education, GO, Refunding:

   

Dedicated Revenues, 5.00%, 12/01/30

    605       695,938  

Dedicated Revenues, Series F, 5.00%, 12/01/22

    455       492,269  

Dedicated Revenues, Series G, 5.00%, 12/01/34

    315       360,911  

5.00%, 12/01/27

    500       580,265  

Chicago Board of Education, GO:

   

5.00%, 12/01/46

    390       445,052  

5.00%, 12/01/46

    1,015       1,084,690  

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

    876       877,813  

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

   

Series A, 5.75%, 01/01/21(b)

    1,680       1,766,503  

Series A, 5.75%, 01/01/39

    320       334,736  

Series C, 6.50%, 01/01/21(b)

    4,055       4,298,746  

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

    730       777,435  

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

    1,000       1,069,390  

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

    560       601,737  

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

    1,115       1,115,000  

Metropolitan Pier & Exposition Authority, Refunding RB:

   

McCormick Place Expansion Project, CAB, Series B (AGM), 0.00%, 06/15/47(c)

    13,220       4,995,177  

McCormick Place Expansion Project, Series B (AGM), 0.00%, 06/15/43(c)

    3,765       1,662,850  

McCormick Place Expansion Project, Series B (AGM), 5.00%, 06/15/50

    3,070       3,134,439  

McCormick Place Expansion Project, Series B-2, 5.00%, 06/15/50

    1,850       1,868,722  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    315       335,787  

6.00%, 06/01/21

    800       858,816  

State of Illinois, GO, 5.00%, 02/01/39

    1,100       1,172,974  

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

    930       1,069,277  

State of Illinois, GO, Series A, 5.00%, 04/01/38

    2,625       2,776,988  

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

    2,000       2,285,960  

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

    705       782,536  
   

 

 

 
      37,029,542  
Indiana — 3.3%  

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

   

6.75%, 01/01/34

    560       649,415  

7.00%, 01/01/44

    1,355       1,540,513  

Indiana Finance Authority, RB, Series A:

   

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

    2,275       2,427,584  

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

    310       336,214  

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

    1,030       1,113,358  

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

    290       315,944  

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

    585       585,000  
Security   Par
(000)
    Value  
Indiana (continued)  

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

  $ 880     $ 968,475  
   

 

 

 
      7,936,503  
Iowa — 1.6%  

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

   

Series B, 5.25%, 12/01/50(d)

    1,955       2,113,902  

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

    320       343,101  

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

    285       297,150  

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

    95       97,088  

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

    980       980,029  
   

 

 

 
      3,831,270  
Kansas — 0.6%  

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

   

5.75%, 11/15/19

    35       35,048  

5.75%, 11/15/19

    1,485       1,487,079  
   

 

 

 
      1,522,127  
Kentucky — 0.7%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(b)

    705       793,555  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43(e)

    865       937,556  
   

 

 

 
      1,731,111  
Louisiana — 1.9%  

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

    430       432,490  

Parish of St. John the Baptist Louisiana, Refunding RB, Marathon Oil Corporation Project(d):

   

2.10%, 06/01/37

    330       331,604  

2.20%, 06/01/37

    345       346,559  

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

   

5.50%, 05/15/30

    700       715,785  

5.25%, 05/15/31

    600       628,020  

5.25%, 05/15/32

    765       822,199  

5.25%, 05/15/33

    830       891,486  

5.25%, 05/15/35

    350       384,972  
   

 

 

 
      4,553,115  
Maryland — 1.0%  

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

    530       542,752  

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

    305       363,041  

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

    1,520       1,608,783  
   

 

 

 
      2,514,576  
Massachusetts — 0.6%  

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

    1,165       1,524,542  
   

 

 

 
Michigan — 3.7%  

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

    3,085       3,364,069  
 

 

 

38    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Michigan (continued)  

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

   

5.50%, 05/15/20(b)

  $ 530     $ 541,936  

5.50%, 05/15/36

    425       434,367  

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

    630       680,539  

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

    2,105       2,107,736  

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

    730       890,359  

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

    785       923,505  
   

 

 

 
      8,942,511  
Minnesota — 1.1%  

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

   

4.25%, 02/15/48

    750       828,375  

5.25%, 02/15/53

    1,500       1,781,100  
   

 

 

 
      2,609,475  
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       191,032  

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

    175       189,054  
   

 

 

 
      380,086  
Nebraska — 0.3%  

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

    575       626,652  
   

 

 

 
New Hampshire — 0.7%  

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

   

Series B, 4.63%, 11/01/42

    1,105       1,141,023  

Series C, AMT, 4.88%, 11/01/42

    575       595,062  
   

 

 

 
      1,736,085  
New Jersey — 12.1%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    735       794,454  

5.25%, 11/01/44

    1,095       1,181,965  

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

    775       784,951  

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

    1,410       1,520,332  

New Jersey EDA, RB:

   

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

    1,365       1,489,079  

Series EEE, 5.00%, 06/15/48

    2,705       3,079,453  

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

    1,060       1,212,078  

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

    1,550       1,817,607  

New Jersey State Turnpike Authority, RB:

   

Series A, 5.00%, 01/01/43

    715       774,674  

Series E, 5.00%, 01/01/45

    1,875       2,148,525  

New Jersey Transportation Trust Fund Authority, RB:

   

Series BB, 4.00%, 06/15/50

    1,085       1,127,662  

Series BB, 5.00%, 06/15/50

    2,325       2,647,966  

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

    315       342,103  

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

    580       623,181  
Security   Par
(000)
    Value  
New Jersey (continued)  

New Jersey Transportation Trust Fund Authority, RB (continued):

   

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

  $ 1,575     $ 1,648,285  

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

    1,705       1,786,380  

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

    390       453,340  

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

    5,150       5,689,720  
   

 

 

 
      29,121,755  
New York — 7.8%  

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

    310       332,785  

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

    1,300       1,319,786  

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

    265       264,981  

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

    225       244,030  

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

    1,405       1,405,618  

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

    1,715       1,965,459  

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

    1,740       1,742,071  

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

    1,415       1,415,113  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 01/15/20(b)

    850       858,747  

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

    2,275       2,500,953  

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

    245       270,813  

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

    605       679,990  

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

   

6.00%, 12/01/36

    900       939,591  

6.00%, 12/01/42

    875       911,444  

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

    1,305       1,586,723  

State of New York Thruway Authority, Refunding RB, Series B, 4.00%, 01/01/50

    2,090       2,314,988  
   

 

 

 
      18,753,092  
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       450,881  
   

 

 

 
North Dakota — 0.3%  

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

    695       820,559  
   

 

 

 
Ohio — 1.9%  

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

    2,570       2,589,301  

County of Franklin Ohio, RB:

   

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

    470       514,518  

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

    290       340,994  
 

 

 

SCHEDULES OF INVESTMENTS      39  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Ohio (continued)  

Ohio Air Quality Development Authority, RB, AMG Vanadium Project, AMT, 5.00%, 07/01/49(a)

  $ 535     $ 590,854  

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

    580       644,200  
   

 

 

 
      4,679,867  
Oklahoma — 1.8%  

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

    1,500       1,654,500  

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

    855       1,010,080  

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

    1,420       1,583,584  
   

 

 

 
      4,248,164  
Oregon — 0.3%  

Warm Springs Reservation Confederated Tribe, Refunding RB, Green Bond, Pelton Round Butte Project, Series B, 5.00%, 11/01/39(a)

    650       756,717  
   

 

 

 
Pennsylvania — 3.1%  

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

    460       498,130  

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

   

4.00%, 09/01/49

    415       446,445  

5.00%, 09/01/43

    905       1,069,411  

Lancaster IDA, RB, Willow Valley Communities Project, 5.00%, 12/01/49

    950       1,096,205  

Pennsylvania Economic Development Financing Authority, RB, AMT, 5.00%, 06/30/42

    2,015       2,279,408  

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

    1,105       1,162,471  

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

    795       904,376  
   

 

 

 
      7,456,446  
Puerto Rico — 5.5%  

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

   

5.50%, 05/15/39

    475       482,410  

5.63%, 05/15/43

    500       507,810  

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

   

5.00%, 07/01/33

    1,845       1,933,412  

5.13%, 07/01/37

    510       535,577  

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

   

6.00%, 07/01/38

    530       535,470  

6.00%, 07/01/44

    960       969,859  

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

   

Series A-1, 4.75%, 07/01/53

    1,146       1,181,961  

Series A-1, 5.00%, 07/01/58

    4,631       4,846,619  

Series A-2, 4.33%, 07/01/40

    62       62,820  

Series A-2, 4.78%, 07/01/58

    2,162       2,225,195  
   

 

 

 
      13,281,133  
Rhode Island — 2.3%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    580       652,169  

Series B, 4.50%, 06/01/45

    1,900       1,980,199  

Series B, 5.00%, 06/01/50

    2,605       2,775,107  
   

 

 

 
      5,407,475  
Security   Par
(000)
    Value  
South Carolina — 4.7%  

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

  $ 2,245     $ 2,617,558  

State of South Carolina Ports Authority, ARB:

   

5.25%, 07/01/20(b)

    2,285       2,345,895  

AMT, 5.25%, 07/01/25(b)

    160       192,691  

AMT, 5.25%, 07/01/55

    765       883,743  

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

    2,410       2,730,651  

State of South Carolina Public Service Authority, Refunding RB:

   

Series A, 5.00%, 12/01/50

    1,035       1,181,235  

Series E, 5.25%, 12/01/55

    1,225       1,421,159  
   

 

 

 
      11,372,932  
Tennessee — 1.1%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(b)

    980       1,100,158  

City of Chattanooga Health Educational & Housing Facility Board, Refunding RB, Commonspirit Health, Series A, 4.00%, 08/01/44

    115       123,862  

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

    495       574,680  

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

    705       855,024  
   

 

 

 
      2,653,724  
Texas — 9.4%  

Central Texas Regional Mobility Authority, Refunding RB:

   

Senior Lien, 6.25%, 01/01/21(b)

    1,480       1,564,330  

Sub-Lien, 5.00%, 01/01/33

    250       272,453  

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

    440       501,987  

City of Austin Texas Electric Utility Revenue, Refunding RB, Series A, 5.00%, 11/15/37

    1,500       1,652,160  

City of San Antonio Texas Electric & Gas Systems Revenue, Refunding RB, Series A, 5.00%, 02/01/48

    850       1,038,573  

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

    325       382,385  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/48

    3,330       3,971,258  

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 09/01/31(b)(c)

    1,400       698,852  

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

    1,825       2,200,311  

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

   

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

    2,000       2,075,540  

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

    1,700       1,713,532  

Texas Transportation Commission, RB, First Tier Toll Revenue, 5.00%, 08/01/57

    845       993,796  

Texas Water Development Board, RB, Series A, 4.00%, 10/15/49

    5,020       5,627,320  
   

 

 

 
      22,692,497  
Utah — 0.6%  

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

   

5.00%, 07/01/48

    640       754,464  

5.00%, 07/01/47

    665       774,126  
   

 

 

 
      1,528,590  
 

 

 

40    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Virginia — 1.8%  

County of Hanover Virginia EDA, Refunding RB, Covenant Woods, Series A:

   

5.00%, 07/01/42

  $ 625     $ 648,706  

Residential Care Facility, 5.00%, 07/01/47

    970       1,003,552  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 01/01/32

    550       600,424  

6.00%, 01/01/37

    1,830       2,025,719  
   

 

 

 
      4,278,401  
Washington — 2.4%  

Grant County Public Utility District No. 2, Refunding RB, Series A, 5.00%, 01/01/43

    1,555       1,820,407  

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

    1,085       1,266,575  

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

    540       607,894  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45

    1,625       1,821,528  

Washington Health Care Facilities Authority, Refunding RB, Commonspirit Health, Series A, 4.00%, 08/01/44

    250       269,265  
   

 

 

 
      5,785,669  
Wisconsin — 0.7%  

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

    1,710       1,711,985  
   

 

 

 

Total Municipal Bonds — 119.2%
(Cost — $259,807,824)

 

    286,611,563  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(f)

 

California — 6.7%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, 4.00%, 04/01/42(g)

    2,257       2,511,805  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19(b)

    6,600       6,600,000  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.00%, 05/15/40

    4,121       4,200,189  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    2,250       2,682,160  
   

 

 

 
      15,994,154  
Colorado — 2.0%  

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

    1,664       2,006,614  

County of Adams Colorado, COP, Refunding, 4.00%, 12/01/45

    2,700       2,910,438  
   

 

 

 
      4,917,052  
Florida — 1.7%  

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

    3,939       4,075,370  
   

 

 

 
Illinois — 0.5%  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C:

   

4.00%, 02/15/27(b)

    3       2,817  

4.00%, 02/15/41

    1,031       1,123,016  
   

 

 

 
      1,125,833  
Security   Par
(000)
    Value  
Massachusetts — 4.3%  

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

  $ 1,502     $ 1,620,228  

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 5.00%, 07/01/47

    3,359       4,006,997  

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

    4,502       4,801,428  
   

 

 

 
      10,428,653  
New York — 9.0%  

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

   

5.75%, 02/15/21(b)

    687       725,746  

5.75%, 02/15/47

    423       446,457  

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

    7,440       8,049,631  

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

    4,460       4,835,884  

Port Authority of New York & New Jersey, Refunding ARB, Series194th, 5.25%, 10/15/55

    1,860       2,211,893  

State of New York Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/46

    4,846       5,462,552  
   

 

 

 
      21,732,163  
North Carolina — 0.9%  

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55

    1,830       2,143,717  
   

 

 

 
Pennsylvania — 0.9%  

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

    1,695       2,037,763  
   

 

 

 
Rhode Island — 0.5%  

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

    1,140       1,191,574  
   

 

 

 
Texas — 5.2%  

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

    1,720       1,893,324  

County of Harris Texas, RB, Toll Road, Senior Lien, Series A(g):

   

5.00%, 08/15/19(b)

    1,138       1,140,363  

5.00%, 08/15/38

    871       872,279  

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

    2,350       2,504,324  

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

    1,504       1,564,655  

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

    2,295       2,410,599  

University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43

    2,041       2,226,253  
   

 

 

 
    12,611,797  
Virginia — 0.9%  

Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40

    2,095       2,128,506  
   

 

 

 
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       2,218,063  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 33.5%
(Cost — $76,346,463)

 

    80,604,645  
 

 

 

 

Total Long-Term Investments — 152.7%
(Cost — $336,154,287)

 

    367,216,208  
 

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      41  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Short-Term Securities — 0.1%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 2.03%(h)(i)

    129,967     $ 129,980  
   

 

 

 

Total Short-Term Securities — 0.1%
(Cost — $129,967)

 

    129,980  
 

 

 

 

Total Investments — 152.8%
(Cost — $336,284,254)

 

    367,346,188  

Other Assets Less Liabilities — 1.7%

 

    3,979,554  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (19.7)%

 

    (47,253,698

VMTP Shares at Liquidation Value — (34.8)%

 

    (83,700,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 240,372,044  
 

 

 

 

 

(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 February 15, 2031, is $7,405,104. See Note 4 of the Notes to Financial Statements for details.

(h) 

Annualized 7-day yield as of period end.

 
(i) 

During the six months ended October 31, 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
04/30/19
     Net
Activity
     Shares
Held at
10/31/19
     Value at
10/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     6,880,499        (6,750,532      129,967      $ 129,980      $ 69,292      $ (861    $ 698  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     16          12/19/19        $ 2,085        $ 8,798  

Long U.S. Treasury Bond

     64          12/19/19          10,328          92,459  

5-Year U.S. Treasury Note

     9          12/31/19          1,073          4,390  
                 

 

 

 
                  $ 105,647  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 105,647      $      $ 105,647  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, are reported in the Schedule of Investments. In the Statements 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).

 

 

 

42    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund, Inc. (MHD)

 

For the six months ended October 31, 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:

                    

Future contracts

   $      $      $      $      $ (1,660,447    $      $ (1,660,447
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Future contracts

   $      $      $      $      $ 184,918      $      $ 184,918  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 15,578,684  

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)

   $        $ 367,216,208        $        $ 367,216,208  

Short-Term Securities

     129,980                            129,980  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 129,980        $ 367,216,208        $        $ 367,346,188  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 105,647        $        $         —        $ 105,647  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

   $        $ (47,050,972      $        $ (47,050,972

VRDP Shares at Liquidation Value

              (83,700,000                 (83,700,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $         —        $ (130,750,972      $         —        $ (130,750,972
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      43  


Schedule of Investments  (unaudited)

October 31, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 105.7%

 

Alabama — 1.2%  

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

  $ 1,875     $ 2,208,675  
   

 

 

 
Arizona — 1.4%  

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

    890       944,664  

County of Maricopa IDA, Refunding RB, Honorhealth, Series A, 4.13%, 09/01/38

    475       541,429  

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

    810       1,086,372  
   

 

 

 
      2,572,465  
Arkansas — 0.8%  

Arkansas Development Finance Authority, RB, Big River Steel Project, AMT, 4.50%, 09/01/49(a)

    1,370       1,450,515  
   

 

 

 
California — 6.5%  

Benicia Unified School District, GO, CAB, Series A (NPFGC), 0.00%, 08/01/20(b)

    2,000       1,983,480  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20(c)

    1,585       1,646,260  

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

    445       502,280  

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

   

5.25%, 08/15/39

    80       89,694  

5.25%, 08/15/49

    195       216,592  

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

    120       141,347  

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

    730       778,180  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A, 5.00%, 12/01/46(a)

    235       262,624  

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

    185       215,290  

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

    1,425       1,466,824  

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

    2,525       2,106,633  

State of California, GO, Various Purposes, 6.00%, 03/01/33

    1,265       1,285,139  

State of California Public Works Board, LRB, Various Capital Projects, Series I, 5.00%, 11/01/38

    405       457,055  

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

    405       405,450  
   

 

 

 
      11,556,848  
Colorado — 1.9%  

City & County of Denver Colorado, RB, Capital Appreciation Bonds, Series A-2, 0.00%, 08/01/37(b)

    1,490       802,886  

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

    1,055       1,079,096  

Colorado Health Facilities Authority, Refunding RB, Commonspirit Health, Series A-2, 3.25%, 08/01/49

    1,105       1,045,032  

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

    510       521,939  
   

 

 

 
      3,448,953  
Connecticut — 1.0%  

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

   

Sub-Series A-1, 3.85%, 11/15/43

    1,370       1,466,544  

Sub-Series B-1, 4.00%, 05/15/45

    265       280,330  
   

 

 

 
      1,746,874  
Security   Par
(000)
    Value  
Delaware — 2.4%  

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

  $ 570     $ 593,695  

Delaware State Health Facilities Authority, RB, Beebe Medical Center Project, 5.00%, 06/01/48

    1,395       1,631,327  

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

    2,050       2,108,486  
   

 

 

 
      4,333,508  
District of Columbia — 3.7%  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/34(b)

    10,170       6,542,666  
   

 

 

 
Florida — 2.0%  

Florida Housing Finance Corp., RB, S/F Housing, Series 1 (Ginnie Mae, Fannie Mae & Freddie Mac), 3.75%, 07/01/42

    595       637,614  

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

    1,525       1,696,761  

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

    1,100       1,179,299  
   

 

 

 
      3,513,674  
Georgia — 4.6%  

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

    270       317,955  

County of Griffin-Spalding Hospital Authority, RB, Revenue Anticipation Certificates, 4.00%, 04/01/42

    2,310       2,481,333  

DeKalb Georgia Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/19(c)

    420       420,517  

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

   

5.00%, 05/15/36

    1,500       1,956,330  

5.00%, 05/15/38

    790       1,038,360  

5.00%, 05/15/49

    935       1,260,305  

Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project:

   

4.00%, 01/01/49

    260       278,499  

5.00%, 01/01/56

    350       404,239  
   

 

 

 
      8,157,538  
Hawaii — 1.0%  

State of Hawaii Department of Budget & Finance, Refunding RB, 3.20%, 07/01/39

    1,125       1,141,920  

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

    680       697,945  
   

 

 

 
      1,839,865  
Idaho — 1.1%  

County of Power Idaho Industrial Development Corp., RB, FMC Corp. Project, AMT, 6.45%, 08/01/32

    2,000       2,006,800  
   

 

 

 
Illinois — 13.5%  

Chicago Board of Education, GO:

   

Dedicated Revenues, Series H, 5.00%, 12/01/46

    240       270,605  

Project, Series C, 5.25%, 12/01/35

    805       887,939  

Chicago Board of Education, GO, Refunding:

   

Dedicated Revenues, Series C, 5.00%, 12/01/34

    240       274,238  

Series D, 5.00%, 12/01/25

    435       494,247  

Series F, 5.00%, 12/01/24

    340       381,174  

Series C, 5.00%, 12/01/25

    360       409,032  

Chicago Board of Education, GO:

   

, 5.00%,12/01/46

    300       342,348  

, 5.00%,12/01/46

    770       822,868  

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

    584       585,209  
 

 

 

44    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

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

   

Series A, 5.75%, 01/01/21(c)

  $ 2,100     $ 2,208,129  

Series A, 5.75%, 01/01/39

    400       418,420  

Series C, 6.50%, 01/01/21(c)

    2,935       3,111,423  

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

    530       564,439  

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

    410       440,557  

Illinois Finance Authority, Refunding RB, Southern Illinois Healthcare Enterprises, Inc., 4.00%, 03/01/35

    1,290       1,409,441  

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

   

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

    9,555       3,610,357  

Series B (AGM), 5.00%, 06/15/50

    2,230       2,276,808  

Series B-2, 5.00%, 06/15/50

    1,260       1,272,751  

Railsplitter Tobacco Settlement Authority, RB(c):

   

5.50%, 06/01/21

    230       245,178  

6.00%, 06/01/21

    500       536,760  

State of Illinois, GO:

   

5.00%, 02/01/39

    810       863,735  

Series A, 5.00%, 04/01/38

    1,920       2,031,168  

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

    520       577,190  
   

 

 

 
      24,034,016  
Indiana — 3.0%  

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

   

6.75%, 01/01/34

    415       481,263  

7.00%, 01/01/44

    1,000       1,136,910  

Indiana Finance Authority, RB, Series A:

   

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

    1,660       1,771,336  

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

    225       244,026  

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

    740       799,888  

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

    210       228,787  

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

    640       704,346  
   

 

 

 
      5,366,556  
Iowa — 0.9%  

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

   

Series B, 5.25%, 12/01/50(d)

    240       259,507  

Midwestern Disaster Area,

5.25%, 12/01/25

    940       1,007,859  

5.88%, 12/01/26(a)

    210       218,952  

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

    80       81,758  
   

 

 

 
      1,568,076  
Kansas — 0.0%  

Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C, 5.75%, 11/15/19(c)

    25       25,034  
   

 

 

 
Kentucky — 0.7%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(c)

    525       590,945  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43(e)

    635       688,264  
   

 

 

 
      1,279,209  
Security   Par
(000)
    Value  
Louisiana — 2.6%  

Louisiana Public Facilities Authority, Refunding RB, Ochsner Clinic Foundation Project, 5.00%, 05/15/47

  $ 1,635     $ 1,863,344  

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

    310       311,795  

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

   

5.50%, 05/15/30

    510       521,500  

5.25%, 05/15/31

    435       455,315  

5.25%, 05/15/32

    555       596,497  

5.25%, 05/15/33

    600       644,448  

5.25%, 05/15/35

    255       280,480  
   

 

 

 
      4,673,379  
Maine — 0.4%  

State of Maine Housing Authority, RB:

   

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

    355       387,809  

S/F Housing, Series C, 3.95%, 11/15/43

    335       358,631  
   

 

 

 
      746,440  
Maryland — 2.2%  

Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 06/01/20(c)

    220       225,773  

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

    390       399,383  

Maryland Health & Higher Educational Facilities Authority, RB, Medstar Health Issue, Series A, 5.00%, 05/15/42

    1,760       2,079,810  

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

    1,095       1,158,959  
   

 

 

 
      3,863,925  
Massachusetts — 2.5%  

Massachusetts Development Finance Agency, Refunding RB:

   

Atrius Health Issue, Series A, 4.00%, 06/01/49

    150       159,550  

Boston University, Series P, 5.45%, 05/15/59

    845       1,105,784  

Suffolk University, 4.00%, 07/01/39

    1,140       1,229,068  

Massachusetts Educational Financing Authority, RB, Subordinate Education Loan Revenue Bonds, AMT, 3.75%, 07/01/47

    1,865       1,890,812  
   

 

 

 
      4,385,214  
Michigan — 5.4%  

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

    2,235       2,437,178  

Eastern Michigan University, RB, Series A, 4.00%, 03/01/47

    1,170       1,271,895  

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

   

5.50%, 05/15/20(c)

    380       388,558  

5.50%, 05/15/36

    310       316,832  

Michigan Finance Authority, Refunding RB:

   

Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44

    455       491,500  

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

    570       611,884  

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

    1,520       1,521,976  

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

    490       576,456  

State of Michigan Housing Development Authority, RB:

   

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

    940       1,001,025  

S/F Housing,

Series A, 4.00%, 06/01/49

    265       286,438  

Series C, 4.13%, 12/01/38

    730       796,299  
   

 

 

 
      9,700,041  
 

 

 

SCHEDULES OF INVESTMENTS      45  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
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     $ 136,451  

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

    130       140,441  
   

 

 

 
      276,892  
New Hampshire — 1.1%  

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

   

Series B, 4.63%, 11/01/42

    735       758,961  

Series C, AMT, 4.88%, 11/01/42

    420       434,654  

New Hampshire Housing Finance Authority, RB, M/F Housing, Cimarron, Whittier Falls & Marshall (FHA), 4.00%, 07/01/52

    800       847,368  
   

 

 

 
      2,040,983  
New Jersey — 9.4%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    530       572,872  

5.25%, 11/01/44

    790       852,742  

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

    560       567,190  

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

    1,040       1,121,380  

New Jersey EDA, RB:

   

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

    990       1,079,991  

S/F Housing, State House Project, Series B, 4.50%, 06/15/40

    1,270       1,396,327  

Series WW, 5.00%, 06/15/36

    210       233,426  

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

    1,125       1,319,231  

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/45

    715       819,304  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program Bonds, Series AA, 4.13%, 06/15/39

    1,040       1,106,477  

Transportation Program,

Series AA, 5.00%, 06/15/44

    330       358,393  

Series AA, 5.00%, 06/15/44

    610       655,414  

Series A, 5.50%, 06/15/41

    1,025       1,072,693  

Series B, 5.25%, 06/15/36

    1,235       1,293,947  

New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/36

    380       440,614  

Tobacco Settlement Financing Corp. New Jersey, Refunding RB:

   

Series A, 4.00%, 06/01/37

    500       544,150  

Sub-Series B, 5.00%, 06/01/46

    3,105       3,430,404  
   

 

 

 
      16,864,555  
New York — 5.1%  

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

    740       794,390  

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

    1,000       1,015,220  

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

    220       219,985  

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

    252       273,909  

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

    1,020       1,020,449  
Security   Par
(000)
    Value  
New York (continued)  

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

  $ 1,255     $ 1,438,280  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 01/15/20(c)

    615       621,328  

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

    1,495       1,643,483  

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

    175       193,438  

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

    440       494,538  

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

   

6.00%, 12/01/36

    650       678,594  

6.00%, 12/01/42

    630       656,240  
   

 

 

 
      9,049,854  
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       331,370  
   

 

 

 
Ohio — 1.9%  

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

    1,855       1,868,931  

County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40

    350       383,152  

Ohio Air Quality Development Authority, RB, AMG Vanadium Project, AMT, 5.00%, 07/01/49(a)

    405       447,282  

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

    150       159,375  

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

    420       466,490  
   

 

 

 
      3,325,230  
Oklahoma — 0.6%  

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

    280       308,840  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.50%, 08/15/57

    625       744,731  
   

 

 

 
      1,053,571  
Oregon — 0.1%  

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

    210       224,927  
   

 

 

 
Pennsylvania — 4.4%  

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

    335       362,768  

County of Berks IDA, Refunding RB, Tower Health Projects, 5.00%, 11/01/50

    795       901,769  

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

    470       505,612  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 06/30/42

    440       497,737  

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

    390       443,789  

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

    800       841,608  

Pennsylvania Housing Finance Agency, RB, S/F Housing, Series 128B, 3.85%, 04/01/38

    965       1,038,272  

Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing Mortgage, Series 119, 3.50%, 10/01/36

    1,285       1,343,545  
 

 

 

46    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Pennsylvania (continued)  

Pennsylvania Turnpike Commission, RB, Series A:

   

5.00%, 12/01/44

  $ 585     $ 665,484  

Subordinate, 4.00%, 12/01/49

    1,075       1,183,510  
   

 

 

 
      7,784,094  
Puerto Rico — 5.3%  

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

   

5.50%, 05/15/39

    325       330,070  

5.63%, 05/15/43

    355       360,545  

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

   

5.00%, 07/01/33

    1,355       1,419,931  

5.13%, 07/01/37

    385       404,308  

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

   

6.00%, 07/01/38

    400       404,128  

6.00%, 07/01/44

    725       732,446  

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

   

Series A-1, 4.75%, 07/01/53

    865       892,144  

Series A-1, 5.00%, 07/01/58

    3,415       3,574,002  

Series A-2, 4.33%, 07/01/40

    459       465,068  

Series A-2, 4.78%, 07/01/58

    886       911,898  
   

 

 

 
      9,494,540  
Rhode Island — 2.2%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    420       472,261  

Series B, 4.50%, 06/01/45

    1,375       1,433,039  

Series B, 5.00%, 06/01/50

    1,895       2,018,743  
   

 

 

 
      3,924,043  
South Carolina — 5.1%  

South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 4.25%, 05/01/48

    1,445       1,574,891  

State of South Carolina Ports Authority, ARB:

   

5.25%, 07/01/20(c)

    1,650       1,693,972  

AMT, 5.25%, 07/01/25(c)

    115       138,497  

AMT, 5.00%, 07/01/55

    710       827,363  

AMT, 5.25%, 07/01/55

    555       641,147  

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

    2,040       2,311,422  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

    1,635       1,896,813  
   

 

 

 
      9,084,105  
Tennessee — 0.9%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(c)

    720       808,279  

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

    360       417,949  

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

    375       398,854  
   

 

 

 
      1,625,082  
Texas — 5.1%  

Central Texas Regional Mobility Authority, Refunding RB:

   

Senior Lien, 6.25%, 01/01/21(c)

    1,070       1,130,968  

Sub-Lien, 5.00%, 01/01/33

    180       196,166  

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

    240       282,377  
Security   Par
(000)
    Value  
Texas (continued)  

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     $ 1,038,810  

0.00%, 09/15/41

    1,395       543,590  

New Hope Cultural Education Facilities Corp., RB, Collegiate Housing Tarleton State University Project, 5.00%, 04/01/35

    145       159,616  

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 09/01/31(b)(c)

    1,015       506,668  

North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49

    610       676,307  

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

    195       210,452  

Texas Private Activity Bond Surface Transportation Corp., RB:

   

Segment 3C Project, AMT, 5.00%, 06/30/58

    710       827,832  

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

    1,165       1,209,002  

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

    1,300       1,310,348  

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

   

0.00%, 08/01/35

    270       153,762  

0.00%, 08/01/36

    145       78,313  

0.00%, 08/01/37

    195       99,391  

0.00%, 08/01/38

    200       96,280  

0.00%, 08/01/44

    870       298,375  

0.00%, 08/01/45

    1,135       371,542  
   

 

 

 
      9,189,799  
Virginia — 1.1%  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 01/01/32

    400       436,672  

6.00%, 01/01/37

    1,345       1,488,848  
   

 

 

 
      1,925,520  
Washington — 1.0%  

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

    390       439,035  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45

    1,195       1,339,523  
   

 

 

 
      1,778,558  
West Virginia — 1.0%  

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

    1,605       1,726,547  
   

 

 

 
Wisconsin — 2.2%  

Public Finance Authority, RB, Wakemed Hospital, Series A, 4.00%, 10/01/49

    2,000       2,130,300  

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

    1,235       1,236,432  

Wisconsin Housing & Economic Development Authority, RB, M/F Housing, Series A, 4.45%, 05/01/57

    575       618,729  
   

 

 

 
      3,985,461  
   

 

 

 

Total Municipal Bonds — 105.7%
(Cost — $170,027,463)

 

    188,705,402  
 

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      47  


Schedule of Investments  (unaudited) (continued)

October 31, 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)

 

Arizona — 0.6%  

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

  $ 915     $ 1,004,926  
   

 

 

 
California — 6.5%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, 4.00%, 04/01/42(g)

    1,638       1,822,726  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19(c)

    4,770       4,770,000  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.00%, 05/15/40

    2,967       3,024,136  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    1,635       1,949,036  
   

 

 

 
    11,565,898  
Colorado — 1.2%  

County of Adams Colorado, COP, Refunding, 4.00%, 12/01/45

    1,950       2,101,983  
   

 

 

 
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       549,489  
   

 

 

 
Florida — 7.3%  

City of Tampa Florida, RB, Baycare Health System, Series A, 4.00%, 11/15/46

    1,932       2,076,113  

County of Broward Florida Airport Facilities Revenue, ARB, Senior Bond, Series B, AMT, 4.00%, 09/01/49

    2,356       2,545,996  

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

    2,840       2,937,577  

Greater Orlando Aviation Authority, ARB, Series A, AMT, 4.00%, 10/01/49(g)

    3,543       3,889,936  

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

    1,290       1,509,390  
   

 

 

 
      12,959,012  
Georgia — 0.6%  

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

    1,071       1,111,717  
   

 

 

 
Illinois — 0.6%  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C:

   

4.00%, 02/15/27(c)

    3       2,735  

4.00%, 02/15/41

    1,002       1,090,465  
   

 

 

 
      1,093,200  
Iowa — 0.9%  

Iowa Student Loan Liquidity Corp., Refunding RB, Senior Series B, AMT, 3.00%, 12/01/39

    1,710       1,690,489  
   

 

 

 
Louisiana — 0.7%  

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

    1,245       1,346,318  
   

 

 

 
Maine — 0.3%  

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

    475       523,000  
   

 

 

 
Maryland — 2.2%  

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

    1,515       1,793,924  

State of Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/42

    1,740       2,107,819  
   

 

 

 
      3,901,743  
Security   Par
(000)
    Value  
Massachusetts — 3.3%  

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

  $ 1,982     $ 2,397,782  

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

    3,211       3,425,019  
   

 

 

 
      5,822,801  
Michigan — 2.5%  

Michigan Finance Authority, RB, Multi Model- McLaren Health Care, 4.00%, 02/15/47

    1,724       1,891,000  

State of Michigan Housing Development Authority, RB, M/F Housing, Series A, 4.05%, 10/01/48

    2,337       2,498,848  
   

 

 

 
      4,389,848  
Nebraska — 0.8%  

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

    1,287       1,360,986  
   

 

 

 
Nevada — 1.5%  

County of Clark Nevada, GO, Stadium Improvement, Series A, 5.00%, 05/01/48

    2,260       2,708,754  
   

 

 

 
New York — 9.6%  

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

    1,080       1,179,436  

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

    1,395       1,453,618  

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

   

5.75%, 02/15/21(c)

    501       529,598  

5.75%, 02/15/47

    308       325,793  

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

    2,337       2,783,456  

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

    5,400       5,842,474  

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

    3,250       3,523,907  

Port Authority of New York & New Jersey, Refunding ARB, Series194th, 5.25%, 10/15/55

    1,350       1,605,407  
   

 

 

 
      17,243,689  
North Carolina — 0.9%  

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55

    1,320       1,546,288  
   

 

 

 
Pennsylvania — 1.8%  

Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/36(g)

    1,559       1,749,648  

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

    1,229       1,477,850  
   

 

 

 
      3,227,498  
Rhode Island — 1.2%  

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

   

3.55%, 10/01/33

    1,280       1,377,024  

3.95%, 10/01/43

    750       807,473  
   

 

 

 
      2,184,497  
South Carolina — 1.0%  

South Carolina Ports Authority, ARB, Series B, AMT, 4.00%, 07/01/49(g)

    1,665       1,802,546  
   

 

 

 
Texas — 9.2%  

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

    1,395       1,460,886  
 

 

 

48    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

  $ 1,260     $ 1,386,970  

County of Harris Texas, RB, Toll Road, Senior Lien, Series A(g):

   

5.00%, 08/15/19(c)

    828       829,354  

5.00%, 08/15/38

    633       634,384  

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

    1,710       1,822,296  

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

    1,858       2,246,284  

County of Hidalgo Texas, GOL, Certificates of Obligation, Series A, 4.00%, 08/15/43

    2,297       2,558,064  

Howe Independent School District, GO, School Building (PSF-GTD), 4.00%, 08/15/43

    1,095       1,197,985  

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

    1,499       1,574,679  

Texas Department of Housing & Community Affairs, RB, S/F Housing, Series A (Ginnie Mae):

   

3.63%, 09/01/44

    437       462,278  

3.75%, 09/01/49

    239       253,446  

University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43

    1,801       1,964,341  
   

 

 

 
    16,390,967  
Virginia — 0.9%  

Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40

    1,553       1,577,847  
   

 

 

 
Washington — 0.9%  

Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.13%, 08/15/43

    1,445       1,553,661  
   

 

 

 
Wisconsin — 0.8%  

Wisconsin Housing & Economic Development Authority, RB, M/F Housing, Series A, 4.30%, 11/01/53

    1,395       1,497,016  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 55.6%
(Cost — $94,546,295)

 

    99,154,173  
 

 

 

 

Total Long-Term Investments — 161.3%
(Cost — $264,573,758)

 

    287,859,575  
 

 

 

 
Security  

Shares

    Value  

Short-Term Securities — 0.2%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.04%(h)(i)

    383,544     $ 383,582  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost — $383,582)

 

    383,582  
 

 

 

 

Total Investments — 161.5%
(Cost — $264,957,340)

 

    288,243,157  

Other Assets Less Liabilities — 2.0%

 

    3,639,575  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (32.7)%

 

    (58,350,215

VMTP Shares, at Liquidation Value — (30.8)%

 

    (55,000,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 178,532,517  
 

 

 

 

 

(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 February 15, 2031, is $10,165,637. See Note 4 of the Notes to Financial Statements for details.

(h) 

Annualized 7-day yield as of period end.

 
(i) 

During the six months ended October 31, 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
04/30/19
     Net
Activity
     Shares
Held at
10/31/19
     Value at
10/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     53,945        329,599        383,544      $ 383,582      $ 3,815      $ 170      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

 

 

SCHEDULES OF INVESTMENTS      49  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

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

     14          12/19/19        $ 1,824        $ 4,014  

Long U.S. Treasury Bond

     62          12/19/19          10,005          11,623  

5-Year U.S. Treasury Note

     4          12/31/19          477          (23
                 

 

 

 
                  $ 15,614  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 15,637      $      $ 15,637  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Liabilities — Derivative Financial Instruments                                                 

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $      $      $ (23    $      $ (23
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements 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 six months ended October 31, 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

   $      $      $      $      $ (1,391,766    $      $ (1,391,766
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 107,201      $      $ 107,201  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 13,000,172  

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

 

 

50    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Fund II, Inc. (MUH)

 

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)

   $        $ 287,859,575        $        $ 287,859,575  

Short-Term Securities

     383,582                            383,582  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 383,582        $ 287,859,575        $        $ 288,243,157  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 15,637        $        $        $ 15,637  
  

 

 

      

 

 

      

 

 

      

 

 

 

Liabilities:

 

Interest rate contracts

     (23                          (23
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 15,614        $        $               —        $ 15,614  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

   $        $ (58,118,713      $        $ (58,118,713

VMTP Shares at Liquidation Value

              (55,000,000                 (55,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $               —        $ (113,118,713      $               —        $ (113,118,713
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      51  


Schedule of Investments  (unaudited)

October 31, 2019

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 134.6%

 

Alabama — 0.3%  

City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35

  $ 565     $ 603,369  
   

 

 

 
Arizona — 2.1%  

Arizona IDA, RB:

   

Leman Academy of Excellence-East Tucson And Central Tucson Projects, Series A 5.00%, 07/01/39(a)

    270       280,487  

5.00%, 07/01/49(a)

    310       321,873  

5.00%, 07/01/54(a)

    240       247,087  

Odyssey Preparatory Academy Project, 4.38%, 07/01/39(a)

    325       324,357  

S/F Housing, NCCU Properties LLC-North Carolina Central University Project, Series A (BAM), 4.00%, 06/01/44

    425       459,098  

County of Pima Arizona IDA, Refunding RB, American Leadership Academy Project, 5.00%, 06/15/52(a)

    260       273,595  

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

    1,410       1,891,092  
   

 

 

 
      3,797,589  
California — 16.9%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20(b)

    1,730       1,796,864  

California Municipal Finance Authority, ARB, Senior Lien, Linxs APM Project, AMT, 5.00%, 12/31/43

    800       937,088  

City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT:

   

5.50%, 05/01/28

    1,085       1,233,146  

5.25%, 05/01/33

    850       954,473  

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       2,526,336  

5.75%, 03/01/34

    2,180       2,298,287  

City of Sunnyvale California, Refunding RB, 5.25%, 04/01/20(b)

    1,605       1,632,654  

County of Riverside Public Financing Authority, RB, Capital Facilities Project, 5.25%, 11/01/40

    2,500       2,977,150  

Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/23(b)

    1,420       1,668,230  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 08/01/20(b)

    1,000       1,031,230  

Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 08/01/21(b)

    1,335       1,437,822  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series J:

   

5.25%, 05/15/23(b)

    3,170       3,633,993  

5.25%, 05/15/38

    900       1,016,307  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB, Series A, AMT, 5.00%, 05/01/44

    1,090       1,218,446  

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

   

5.50%, 11/01/30

    1,500       1,740,705  

5.50%, 11/01/31

    2,465       2,856,713  

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33

    725       826,638  

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/40

    540       633,188  
   

 

 

 
      30,419,270  
Colorado — 1.5%  

City & County of Denver Colorado Airport System, ARB, Series A, AMT:

   

5.50%, 11/15/28

    1,000       1,148,850  

5.50%, 11/15/30

    340       389,524  

5.50%, 11/15/31

    405       463,336  
Security   Par
(000)
    Value  
Colorado (continued)  

Colorado Health Facilities Authority, Refunding RB, AdventHealth Obligated Group, 4.00%, 11/15/43

  $ 705     $ 785,032  
   

 

 

 
      2,786,742  
Connecticut — 1.0%  

State of Connecticut, GO, Series A, 5.00%, 04/15/38

    985       1,187,802  

State of Connecticut Health & Educational Facility Authority, Refunding RB, Sacred Heart University Issue, Series I-1, 5.00%, 07/01/42

    590       699,881  
   

 

 

 
      1,887,683  
Delaware — 0.5%  

State of Delaware Health Facilities Authority, RB, Beebe Medical Center Project, 5.00%, 06/01/43

    820       965,509  
   

 

 

 
Florida — 14.8%  

Central Florida Expressway Authority, Refunding RB, Senior Lien, 5.00%, 07/01/48

    2,760       3,316,858  

County of Broward Florida Airport System, ARB, Series A, AMT, 5.00%, 10/01/45

    2,845       3,254,111  

County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT, 5.50%, 10/01/29

    1,735       1,990,565  

County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32

    1,500       1,599,060  

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

    65       66,524  

County of Miami-Dade Florida, RB, Seaport Department:

   

Series A, 5.38%, 10/01/33

    1,015       1,156,613  

Series A, 6.00%, 10/01/38

    1,000       1,157,480  

Series B, AMT, 6.25%, 10/01/38

    460       532,261  

Series B, AMT, 6.00%, 10/01/42

    615       708,947  

County of Miami-Dade Florida Aviation, Refunding ARB, Series A, AMT, 5.00%, 10/01/22(b)

    2,900       3,191,421  

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

    3,465       3,965,554  

Reedy Creek Florida Improvement District, GO, Series A, 5.25%, 06/01/32

    1,040       1,176,188  

Southern Groves Community Development District No. 5, Refunding, Special Assessment Bonds, 4.00%, 05/01/43(c)

    220       221,976  

Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/21(b)

    3,995       4,294,785  
   

 

 

 
      26,632,343  
Georgia — 1.2%  

County of Fulton Development Authority, RB, Georgia Institute of Technology, 4.00%, 06/15/49

    470       525,051  

Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49

    555       748,096  

Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project, 5.00%, 01/01/48

    835       965,076  
   

 

 

 
      2,238,223  
Hawaii — 1.5%  

State of Hawaii Airports System, ARB, Series A, AMT, 5.00%, 07/01/45

    1,500       1,710,210  

State of Hawaii Airports System, COP, AMT:

   

5.25%, 08/01/25

    425       480,203  

5.25%, 08/01/26

    460       519,368  
   

 

 

 
      2,709,781  
Illinois — 13.3%  

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

    1,000       1,104,260  

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

   

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

    960       1,009,430  
 

 

 

52    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

3rd Lien, Series A, 5.75%, 01/01/39

  $ 185     $ 193,519  

3rd Lien, Series C, 6.50%, 01/01/21(b)

    5,225       5,539,075  

Senior Lien, Series D, AMT, 5.00%, 01/01/42

    430       498,198  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts:

   

5.25%, 12/01/36

    1,000       1,067,820  

5.25%, 12/01/40

    1,790       1,906,314  

City of Chicago Illinois Wastewater Transmission, RB, 2nd Lien, 5.00%, 01/01/42

    2,050       2,154,591  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago:

   

5.50%, 12/01/38

    1,250       1,343,163  

5.25%, 12/01/43

    1,505       1,591,056  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 5.00%, 02/15/41

    555       655,721  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    1,405       1,497,716  

6.00%, 06/01/21

    400       429,408  

State of Illinois, GO:

   

5.25%, 02/01/31

    875       954,179  

5.25%, 02/01/32

    1,355       1,473,861  

5.50%, 07/01/33

    2,000       2,188,060  

5.50%, 07/01/38

    425       463,199  
   

 

 

 
      24,069,570  
Indiana — 2.1%  

Indianapolis Local Public Improvement Bond Bank, RB, Series F, 5.25%, 02/01/36

    3,055       3,190,398  

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

    565       615,375  
   

 

 

 
      3,805,773  
Iowa — 0.7%  

State of Iowa Finance Authority, RB, Lifespace Communities, Series A, 5.00%, 05/15/48

    1,100       1,219,944  
   

 

 

 
Kentucky — 0.8%  

Kentucky Economic Development Finance Authority, Refunding RB, Commonspirit Health, Series A, 5.00%, 08/01/49

    1,165       1,372,603  
   

 

 

 
Louisiana — 1.5%  

Lake Charles Louisiana Harbor & Terminal District, RB, Series B, AMT (AGM), 5.50%, 01/01/29

    1,500       1,726,920  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 05/15/29

    980       981,803  
   

 

 

 
      2,708,723  
Maryland — 2.8%  

County of Howard Maryland Housing Commission, RB, M/F Housing, Woodfield Oxford Square Apartments, 5.00%, 12/01/42

    1,430       1,663,548  

Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/34

    2,700       3,319,326  
   

 

 

 
      4,982,874  
Massachusetts — 1.9%  

Massachusetts Development Finance Agency, RB Emerson College Issue, Series A:

   

5.25%, 01/01/42

    545       638,413  

5.00%, 01/01/47

    245       279,288  

UMass Dartmouth Student Housing Project, 5.00%, 10/01/43

    1,325       1,536,285  

Massachusetts Development Finance Agency, Refunding RB, Emerson College, Series A, 5.00%, 01/01/40

    435       509,141  
Security   Par
(000)
    Value  
Massachusetts (continued)  

Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42

  $ 410     $ 414,977  
   

 

 

 
      3,378,104  
Michigan — 0.3%  

Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.10%, 06/30/48

    520       611,749  
   

 

 

 
Minnesota — 0.4%  

County of St. Paul Minnesota Housing & Redevelopment Authority, Refunding RB, Fairview Health Services, Series A, 4.00%, 11/15/43

    575       632,103  
   

 

 

 
Mississippi — 3.6%  

Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40

    2,595       3,099,442  

Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 08/01/23(b)

    1,000       1,149,210  

State of Mississippi, RB, Series A:

   

5.00%, 10/15/37

    330       405,629  

4.00%, 10/15/38

    1,650       1,852,208  
   

 

 

 
      6,506,489  
Montana — 0.1%  

Montana State Board of Housing, RB, S/F Housing, Series B-2:

   

3.50%, 12/01/42

    100       104,907  

3.60%, 12/01/47

    155       160,737  
   

 

 

 
      265,644  
Nevada — 5.7%  

City of Carson City Nevada, Refunding RB, Carson Tahoe Regional Healthcare Project, 5.00%, 09/01/42

    650       753,376  

City of Reno Nevada, Refunding RB, Series A-1 (AGM):

   

4.00%, 06/01/43

    1,570       1,687,326  

4.00%, 06/01/46

    1,250       1,338,612  

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 07/01/39

    1,410       1,418,136  

County of Clark Nevada, GO, Stadium Improvement, Series A:

   

5.00%, 06/01/36

    1,205       1,478,945  

5.00%, 06/01/37

    3,000       3,671,970  
   

 

 

 
      10,348,365  
New Jersey — 10.4%  

New Jersey EDA, RB:

   

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

    3,000       3,373,350  

Private Activity Bond, Goethals Bridge Replacement Project, AMT (AGM), 5.00%, 01/01/31

    790       885,574  

State Government Buildings Project, Series A, 5.00%, 06/15/47

    2,500       2,812,425  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing, Series BB, AMT, 3.80%, 10/01/32

    1,375       1,451,299  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program Bonds, Series S, 5.25%, 06/15/43

    1,740       2,029,206  

Series BB, 4.00%, 06/15/50

    1,245       1,293,953  

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

    1,000       1,047,730  

Series AA, 5.50%, 06/15/39

    1,890       2,092,003  

New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/32

    1,600       1,878,480  

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

    1,390       1,615,750  

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

    305       336,964  
   

 

 

 
      18,816,734  
 

 

 

SCHEDULES OF INVESTMENTS      53  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Mexico — 0.1%  

City of Santa Fe, RB, EL Castillo Retirement Residences Project, Series A, 5.00%, 05/15/44

  $ 100     $ 110,622  
   

 

 

 
New York — 3.7%  

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

   

5.75%, 02/15/21(b)

    1,555       1,647,662  

5.75%, 02/15/47

    955       1,003,237  

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

   

5.38%, 12/15/20(b)

    865       905,889  

5.38%, 06/15/43

    440       458,634  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 166th Series, 5.25%, 07/15/36

    2,000       2,090,680  

TSASC, Inc., Refunding RB, Series A, 5.00%, 06/01/41

    535       600,077  
   

 

 

 
      6,706,179  
Ohio — 2.1%  

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

    1,445       1,455,852  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 02/15/31

    2,000       2,246,260  
   

 

 

 
      3,702,112  
Oregon — 0.4%  

State of Oregon Health & Science University, RB, Series A, 5.00%, 07/01/42

    600       720,684  
   

 

 

 
Pennsylvania — 10.5%  

Altoona Area School District, GO, (BAM), 5.00%, 12/01/36

    110       128,274  

County of Delaware Springfield School District, GO:

   

5.00%, 03/01/40

    865       1,049,894  

5.00%, 03/01/43

    590       710,106  

County of Lehigh Pennsylvania, Refunding RB, Lehigh Valley Health Network, 4.00%, 07/01/49(c)

    3,000       3,232,920  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 5.00%, 09/01/48

    980       1,147,129  

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/36

    1,290       1,560,061  

Pennsylvania Economic Development Financing Authority, RB, VRDN, Waste Management, Inc. Project, AMT, 2.15%, 07/01/41(d)

    195       197,748  

Pennsylvania Housing Finance Agency, RB, S/F Housing, Series 125B, 3.65%, 10/01/42

    1,000       1,048,940  

Pennsylvania Turnpike Commission, Refunding RB, 2nd Series, Subordinate, Special Motor License Fund, 5.00%, 12/01/41

    1,250       1,488,963  

Pennsylvania Turnpike Commission, RB:

   

Sub-Series B-1, 5.25%, 06/01/47

    1,170       1,384,555  

Subordinate, Series A, 5.00%, 12/01/44

    2,975       3,592,669  

Swarthmore Borough Authority, RB, Swarthmore College, 5.00%, 09/15/48

    1,900       2,317,126  

Township of Bristol Pennsylvania School District, GO, 5.25%, 06/01/37

    1,000       1,113,750  
   

 

 

 
      18,972,135  
Puerto Rico — 3.4%  

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

   

Series A-1, 4.75%, 07/01/53

    715       737,437  

Series A-1, 5.00%, 07/01/58

    1,249       1,307,153  

Series A-2, 4.78%, 07/01/58

    3,437       3,537,464  

Series B-1, 4.75%, 07/01/53

    238       245,273  

Series B-2, 4.78%, 07/01/58

    231       237,073  
   

 

 

 
      6,064,400  
Security   Par
(000)
    Value  
South Carolina — 5.6%  

County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38

  $ 2,180     $ 2,486,574  

County of Charleston South Carolina Airport District, ARB, Series A, AMT:

   

5.50%, 07/01/38

    1,000       1,125,600  

6.00%, 07/01/38

    1,695       1,937,690  

5.50%, 07/01/41

    1,000       1,121,970  

State of South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/43

    800       942,056  

State of South Carolina Ports Authority, RB, AMT, 5.25%, 07/01/25(b)

    1,095       1,318,730  

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

    1,000       1,128,560  
   

 

 

 
      10,061,180  
Tennessee — 1.6%  

Metropolitan Nashville Airport Authority, ARB, Series B, AMT, 5.00%, 07/01/40

    2,500       2,869,525  
   

 

 

 
Texas — 10.1%  

City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 03/01/37

    1,360       1,514,754  

City of Houston Texas Airport System Revenue, Refunding RB, Sub-Series D, 5.00%, 07/01/37

    1,175       1,443,382  

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

    1,500       1,835,010  

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

   

Series A, 5.00%, 11/01/20(b)

    2,965       3,069,042  

Series H, 5.00%, 11/01/37

    2,200       2,329,294  

Lower Colorado River Authority, Refunding RB, 5.50%, 05/15/33

    1,240       1,406,693  

North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 09/01/21(b)

    3,150       3,388,833  

North Texas Tollway Authority, Refunding RB, 1st Tier, Series A, 5.00%, 01/01/48

    1,060       1,257,022  

Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38

    620       691,337  

Texas Private Activity Bond Surface Transportation Corp., RB, Segment 3C Project, AMT, 5.00%, 06/30/58

    1,085       1,265,067  
   

 

 

 
      18,200,434  
Utah — 0.1%  

Utah Charter School Finance Authority, RB, Wallace Stegner Academy Project, Series A, 5.00%, 06/15/39(a)

    100       106,530  
   

 

 

 
Vermont — 1.0%  

University of Vermont & State Agricultural College, Refunding RB, 5.00%, 10/01/43

    1,470       1,760,325  
   

 

 

 
Virginia — 1.8%  

City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 01/01/43

    570       610,390  

Virginia Small Business Financing Authority, RB, Transform 66 P3 Project, AMT, 5.00%, 12/31/49

    2,330       2,662,514  
   

 

 

 
      3,272,904  
Washington — 9.5%  

City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 02/01/21(b)

    1,375       1,443,489  

Port of Seattle Washington, ARB, AMT:

   

Intermediate Lien, Series C, 5.00%, 05/01/37

    1,450       1,710,405  

Series A, 5.00%, 05/01/43

    385       449,430  

State of Washington, COP, Series B:

   

5.00%, 07/01/36

    1,000       1,226,760  

5.00%, 07/01/37

    3,910       4,785,371  

5.00%, 07/01/38

    650       794,040  
 

 

 

54    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Washington (continued)  

State of Washington, GO:

   

Series C, 5.00%, 02/01/36

  $ 4,300     $ 5,282,937  

Various Purposes, Series B, 5.25%, 02/01/21(b)

    1,075       1,128,546  

Washington State Housing Finance Commission, RB, Transforming Age Project, Series A, 5.00%, 01/01/55(a)

    280       304,438  
   

 

 

 
      17,125,416  
Wisconsin — 1.1%  

Public Finance Authority, Refunding RB:

   

Penick Village Obligation Group, 5.00%, 09/01/49(a)

    165       178,134  

The Evergreens Obligated Group, 5.00%, 11/15/49

    335       381,458  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Milwaukee Regional Medical Center Thermal Service, 5.00%, 04/01/44

    1,205       1,450,916  
   

 

 

 
      2,010,508  
Wyoming — 0.2%  

State of Wyoming Municipal Power Agency, Inc., Refunding RB, Series A (BAM), 5.00%, 01/01/42

    330       385,711  
   

 

 

 

Total Municipal Bonds — 134.6%
(Cost — $225,674,048)

 

    242,827,849  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(e)

 

California — 3.0%  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    4,500       5,364,319  
   

 

 

 
Colorado — 1.9%  

City & County of Denver Colorado Airport System Revenue, Refunding ARB, Sub-System, Series A, AMT, 5.25%, 12/01/43(f)

    1,901       2,310,161  

Colorado Health Facilities Authority, Refunding RB, Common spirit Health, Series A, 4.00%, 08/01/49(f)

    1,005       1,074,677  
   

 

 

 
      3,384,838  
Connecticut — 1.1%  

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

    1,771       2,069,607  
   

 

 

 
Illinois — 0.3%  

City of Chicago Illionis Waterworks, Refunding RB, 2017 2nd Lien, Water Revenue Project (AGM), 5.25%, 11/01/33

    480       480,229  
   

 

 

 
Louisiana — 3.8%  

City of Shreveport Louisiana Water & Sewer Revenue, RB, Junior Lien, Series B (AGM):

   

4.00%, 12/01/44

    2,043       2,257,536  

4.00%, 12/01/49

    4,105       4,535,305  
   

 

 

 
      6,792,841  
Maryland — 4.3%  

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

    1,499       1,775,111  

Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/47

    4,894       5,893,057  
   

 

 

 
      7,668,168  
Michigan — 4.4%  

Michigan Finance Authority, RB:

   

Mclaren Health Care, Series A, 4.00%, 02/15/44

    1,912       2,099,837  

Multi Model- McLaren Health Care, 4.00%, 02/15/47

    2,138       2,348,851  

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

    3,020       3,531,528  
   

 

 

 
      7,980,216  
Security   Par
(000)
    Value  
New York — 4.3%  

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

  $ 4,530     $ 4,901,187  

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

    2,660       2,884,182  
   

 

 

 
      7,785,369  
Pennsylvania — 4.6%  

Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/38(f)

    3,650       4,069,385  

County of Northampton General Purpose Authority, Refunding RB, Lafayette College, 4.00%, 11/01/38(f)

    2,596       2,919,108  

County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/38

    1,184       1,377,596  
   

 

 

 
    8,366,089  
Virginia — 1.5%  

County of Fairfax Virginia EDA, RB, Metrorail Parking System Project, 5.00%, 04/01/47(f)

    2,320       2,762,772  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 29.2%
(Cost — $49,353,442)

 

    52,654,448  
 

 

 

 

Total Long-Term Investments — 163.8%
(Cost — $275,027,490)

 

    295,482,297  
 

 

 

 
     Shares         
Short-Term Securities — 0.0%  

BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.40%(g)(h)

    59,843       59,849  
   

 

 

 

Total Short-Term Securities — 0.0%
(Cost — $59,849)

 

    59,849  
 

 

 

 

Total Investments — 163.8%
(Cost — $275,087,339)

 

    295,542,146  

Liabilities in Excess of Other Assets — (0.3)%

 

    (486,549

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (15.3)%

 

    (27,670,836

VMTP Shares at Liquidation Value — (48.2)%

 

    (87,000,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 180,384,761  
 

 

 

 

 

(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) 

When-issued security.

(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 Statements 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 November 15, 2019 to August 1,2027, is $8,008,551.See Note 4 of the Notes to Financial Statements for details.

(g) 

Annualized 7-day yield as of period end.

 

 

 

SCHEDULES OF INVESTMENTS      55  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

 

(h) 

During the six months ended October 31, 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
04/30/19
     Net
Activity
     Shares
Held at
10/31/19
     Value at
10/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     2,454,984        (2,395,141      59,843      $ 59,849      $ 25,641      $ 663      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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          12/19/19        $ 4,170        $ 7,025  

Long U.S. Treasury Bond

     48          12/19/19          7,746          27,915  

5-Year U.S. Treasury Note

     12          12/31/19          1,430          2,357  
                 

 

 

 
                  $ 37,297  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on future contracts(a)

   $      $      $      $      $ 37,297      $      $ 37,297  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

For the six months ended October 31, 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

   $      $      $      $      $ (1,422,241    $      $ (1,422,241
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures Contracts

   $      $      $      $      $ 98,215      $      $ 98,215  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 12,940,785  

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

 

 

56    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

 

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)

   $        $ 295,482,297        $             —        $ 295,482,297  

Short-Term Securities

     59,849                            59,849  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 59,849        $ 295,482,297        $        $ 295,542,146  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 37,297        $        $        $ 37,297  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

   $        $ (27,542,144      $        $ (27,542,144

VMTP Shares at Liquidation Value

              (87,000,000                 (87,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $                 —        $ (114,542,144      $                 —        $ (114,542,144
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      57  


Schedule of Investments  (unaudited)

October 31, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 134.5%

 

Arizona — 3.9%  

Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 02/01/30

  $ 2,685     $ 2,878,535  

Arizona Industrial Development Authority, RB(a):

   

Academies of Math & Science Projects, Series B, 4.25%, 07/01/27

    495       519,611  

Doral Academy of Nevada-Fire Mesa and Red Rock Campus Projects, Series A, 3.55%, 07/15/29

    1,360       1,428,190  

City of Phoenix Arizona IDA, RB, Facility, Legacy Traditional Schools Project, Series A, 5.75%, 07/01/24(a)

    750       815,805  

City of Phoenix Arizona IDA, Refunding RB, Downtown Phoenix Student Housing, Series A:

   

5.00%, 07/01/25

    300       345,159  

5.00%, 07/01/29

    175       210,660  

City of Tucson Arizona, COP, Refunding, (AGC), 4.00%, 07/01/20

    2,325       2,366,478  

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

   

5.00%, 09/01/32

    1,000       1,235,750  

5.00%, 09/01/33

    800       984,032  

5.00%, 09/01/34

    1,000       1,224,350  

County of Pinal Arizona Electric District No. 3, Refunding RB, 5.00%, 07/01/21(b)

    1,600       1,700,336  

Glendale Union School District No. 205, GO, Series C (BAM):

   

5.00%, 07/01/24

    1,945       2,201,973  

5.00%, 07/01/27

    500       565,785  

Phoenix-Mesa Gateway Airport Authority, RB, Mesa Project, AMT:

   

5.00%, 07/01/27

    700       764,106  

5.00%, 07/01/32

    1,925       2,092,725  

Scottsdale IDA, Refunding RB, Scottsdale Healthcare, Series C (AGM), 5.00%, 09/01/35

    2,050       2,106,027  

University of Arizona, RB, 5.00%, 08/01/28

    2,000       2,120,220  
   

 

 

 
      23,559,742  
Arkansas — 0.7%  

City of Benton Arkansas, RB, 5.00%, 06/01/29

    1,055       1,214,579  

University of Arkansas, Refunding RB, 5.00%, 03/01/31

    2,315       2,720,056  
   

 

 

 
      3,934,635  
California — 5.3%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.00%, 08/15/20(b)

    2,135       2,200,972  

City of San Jose California, Refunding ARB, Series A-1, AMT, 5.00%, 03/01/25

    2,000       2,095,720  

County of Santa Barbara California, COP, Series B, AMT, 5.25%, 12/01/33

    10,330       12,969,831  

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

   

5.00%, 06/01/33

    6,715       7,955,261  

5.00%, 06/01/35

    5,785       6,821,556  

State of California, GO, 5.50%, 04/01/28

    15       15,051  
   

 

 

 
      32,058,391  
Colorado — 1.9%  

City & County of Denver Colorado Airport System Revenue, Refunding ARB, AMT, Sub-System, Series A, 5.00%, 12/01/32

    5,000       6,108,750  

Colorado Health Facilities Authority, Refunding RB:

   

Catholic Health Initiatiives, Series B-1,
5.00%, 11/09/22(b)

    270       299,908  

Commonspirit Health, Series A-2, 5.00%, 08/01/34

    1,500       1,819,110  

Park Creek Metropolitan District, Refunding, Tax Allocation Bonds, 5.00%, 12/01/34

    500       578,365  
Security   Par
(000)
    Value  
Colorado (continued)  

Thompson Crossing Metropolitan District No. 4, GO, Refunding, 3.50%, 12/01/29

  $ 515     $ 516,993  

University of Northern Colorado, Refunding RB, Series A, 5.00%, 06/01/31

    2,000       2,315,980  
   

 

 

 
      11,639,106  
Connecticut — 2.9%  

Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F, 5.00%, 07/01/21(b)

    4,530       4,814,892  

State of Connecticut, GO, Series A:

   

5.00%, 04/15/30

    5,000       6,169,650  

5.00%, 04/15/31

    4,000       4,916,480  

5.00%, 04/15/34

    1,185       1,466,899  
   

 

 

 
      17,367,921  
Delaware — 0.8%  

County of Kent Delaware, RB, CHF-Dover, LLC-Delaware State University Project, Series A:

   

5.00%, 07/01/29

    880       1,021,988  

5.00%, 07/01/30

    1,030       1,191,730  

5.00%, 07/01/31

    750       864,720  

5.00%, 07/01/32

    375       430,834  

5.00%, 07/01/33

    1,190       1,362,586  
   

 

 

 
      4,871,858  
Florida — 7.5%  

Capital Region Community Development District, Refunding, Special Assessment Bonds, Series A-1:

   

4.13%, 05/01/23

    400       406,816  

4.63%, 05/01/28

    500       529,195  

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

   

Advantage Academy of Hillsborough Projects, 5.00%, 12/15/29

    400       448,212  

Renaissance Charter School, Inc., 4.00%, 06/15/29(a)

    625       645,844  

County of Alachua Health Facilities Authority, Refunding RB, Shands Teaching Hospital and Clinics, 5.00%, 12/01/34

    1,400       1,722,728  

County of Broward Florida School Board, COP, Refunding, Series A (AGM), 5.00%, 07/01/21(b)

    10,000       10,626,200  

County of Charlotte Florida IDA, RB, Town & Country Utilities Project, 5.00%, 10/01/29(a)

    1,000       1,111,510  

County of Lee Florida, Refunding ARB, Series A, AMT (AGM), 5.00%, 10/01/27

    1,635       1,735,291  

County of Lee Florida, Refunding RB, Series A, AMT, 5.50%, 10/01/23

    1,000       1,072,770  

County of Miami-Dade Florida, RB, AMT, Series B:

   

6.00%, 10/01/28

    3,470       4,015,519  

6.00%, 10/01/29

    3,480       4,024,898  

County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, Series A, 5.00%, 04/01/32

    5,020       5,821,794  

County of Miami-Dade Florida Transit System Sales Surtax Revenue, Refunding RB, 5.00%, 07/01/32

    1,500       1,639,350  

County of Pinellas Florida IDA, RB, 2017 Foundation for Global Understanding, Inc. Project, 5.00%, 07/01/29

    2,200       2,618,088  

Florida Development Finance Corp., RB, Waste Pro USA, Inc., AMT, 5.00%, 05/01/29(a)

    700       767,284  

Harbor Bay Community Development District, Refunding, Special Assessment Bonds, Series A-2:

   

3.30%, 05/01/29

    260       256,149  

3.30%, 05/01/29

    700       689,997  

Harbor Bay Community Development District, Series A-1, 3.30%, 05/01/29

    600       591,426  
 

 

 

58    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

Lakewood Ranch Stewardship District, Special Assessment Bonds:

   

Cresswind Project, 3.60%, 05/01/24

  $ 235     $ 238,064  

Cresswind Project, 3.80%, 05/01/29

    280       287,174  

Del Webb Project, 3.65%, 05/01/22(a)

    405       409,439  

Del Webb Project, 4.30%, 05/01/27(a)

    520       547,352  

Lake Club Phase 4 project, 3.60%, 05/01/24

    430       435,599  

Lake Club Phase 4 project, 3.80%, 05/01/29

    510       523,051  

Lakewood National and Polo Run Projects, 4.00%, 05/01/22

    945       960,252  

Midtown Miami Community Development District, Refunding, Special Assessment Bonds, Series A, 4.25%, 05/01/24

    1,105       1,145,587  

Sarasota County Health Facilities Authority, RB, Sunnyside Village Project, 5.00%, 05/15/33

    600       691,170  

Southern Groves Community Development District No. 5, Refunding, Special Assessment Bonds, 3.25%, 05/01/29(c)

    300       299,289  

Sterling Hill Community Development District, Refunding, Special Assessment Bonds, Series B, 5.50%, 11/01/10(d)(e)

    143       90,783  

Talavera Community Development District, Special Assessment Bonds:

   

3.50%, 05/01/25

    365       367,807  

3.85%, 05/01/30

    540       550,141  

Tolomato Community Development District, Refunding, Special Assessment Bonds, Series A-2, 3.85%, 05/01/29

    180       183,301  
   

 

 

 
      45,452,080  
Georgia — 4.8%  

City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/32

    8,315       9,772,703  

County of Cobb Kennestone Hospital Authority, Refunding RB, Revenue Anticipation Certificates, 5.00%, 04/01/32

    1,250       1,496,400  

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

   

5.50%, 09/15/28

    2,500       3,160,750  

5.00%, 05/15/33

    5,000       6,033,750  

5.00%, 05/15/34

    5,250       6,304,147  

Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project:

   

5.00%, 01/01/34

    700       819,658  

5.00%, 01/01/35

    1,225       1,428,448  
   

 

 

 
      29,015,856  
Hawaii — 0.8%  

State of Hawaii Airports System, Refunding ARB, Series A, 5.25%, 07/01/29

    5,000       5,133,500  
   

 

 

 
Illinois — 15.5%  

Chicago Board of Education, GO, Refunding:

   

CAB, Series A, 0.00%, 12/01/25(f)

    420       353,900  

Series A, 5.00%, 12/01/29

    1,110       1,316,038  

Series A, 5.00%, 12/01/30

    1,325       1,565,434  

Series C, 5.00%, 12/01/26

    4,730       5,432,027  

Chicago Board of Education, GO, Refunding Dedicated Revenues, Series D, 5.00%, 12/01/26

    4,185       4,806,138  

City of Chicago Illinois Midway International Airport, Refunding ARB, 2nd Lien, Series A, AMT:

   

5.00%, 01/01/32

    5,000       5,618,750  

5.50%, 01/01/32

    1,500       1,668,450  

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

   

5.25%, 01/01/28

    1,350       1,497,461  

5.25%, 01/01/29

    3,020       3,346,673  

City of Chicago Illinois O’Hare International Airport, RB, Refunding GARB, 5.00%, 01/01/32

    3,745       4,329,932  
Security   Par
(000)
    Value  
Illinois (continued)  

City of Chicago Illinois O’Hare International Airport, Refunding GARB, Senior Lien, Series A, AMT, 5.00%, 01/01/23

  $ 13,000     $ 14,370,330  

City of Chicago Illinois Transit Authority, RB, 5.25%, 12/01/31

    3,700       3,964,143  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.13%, 12/01/38

    1,000       1,058,460  

Illinois Finance Authority, Refunding RB, CHF-Chicago, LLC-University Of Illinois at Chicago:

   

5.00%, 02/15/28

    810       964,038  

5.00%, 02/15/29

    400       475,756  

5.00%, 02/15/30

    500       588,765  

5.00%, 02/15/31

    500       586,030  

5.00%, 02/15/32

    500       583,740  

Madison-Macoupin Etc. Counties Community College District No. 536, GO, Refunding, Lewis & Clark Community College:

   

5.00%, 05/01/30

    475       481,018  

5.00%, 05/01/31

    500       506,275  

5.00%, 05/01/32

    500       506,220  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project, 5.00%, 12/15/28

    1,200       1,387,812  

Railsplitter Tobacco Settlement Authority, RB,
5.50%, 06/01/21(b)

    3,500       3,730,965  

State of Illinois, GO:

   

5.25%, 02/01/30

    5,000       5,469,850  

5.00%, 04/01/31

    1,000       1,080,240  

5.00%, 05/01/31

    10,010       10,821,911  

State of Illinois, GO, Refunding, Series B, 5.00%, 10/01/27

    470       536,735  

State of Illinois Finance Authority, Refunding RB, Southern Illinois Healthcare Enterprises, Inc.:

   

5.00%, 03/01/30

    550       659,813  

5.00%, 03/01/32

    920       1,096,944  

State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 01/01/34

    9,140       10,072,554  

State of Illinois Toll Highway Authority, Refunding RB, Senior Series A, 5.00%, 12/01/31

    4,220       4,954,575  
   

 

 

 
      93,830,977  
Indiana — 3.4%  

City of Whiting Indiana, RB, BP Products North America, Inc. Project, 5.25%, 01/01/21

    4,800       5,007,792  

Indiana Finance Authority, RB, Wastewater, 1st Lien, Series A, 5.25%, 10/01/31

    10,000       10,707,100  

Indiana Finance Authority, Refunding RB, US Steel Corp. Project, 6.00%, 12/01/19

    5,000       5,016,300  
   

 

 

 
      20,731,192  
Iowa — 1.0%  

Iowa Higher Education Loan Authority, RB, Private College Facility:

   

5.25%, 04/01/23

    695       732,954  

5.25%, 04/01/24

    730       769,741  

5.25%, 04/01/25

    520       548,215  

5.25%, 04/01/26

    360       379,422  

Iowa Higher Education Loan Authority, Refunding RB, Private College Facility:

   

5.00%, 09/01/20(b)

    2,315       2,386,950  

Upper Iowa University Project, 5.00%, 09/01/20(g)

    465       477,420  

Iowa Student Loan Liquidity Corp., Refunding RB, AMT, Series A, 5.00%, 12/01/26

    775       902,984  
   

 

 

 
      6,197,686  
Kansas — 1.3%  

County of Seward Unified School District No. 480 Liberal, GO, Refunding:

   

5.00%, 09/01/22(b)

    3,990       4,405,558  

5.00%, 09/01/33

    1,005       1,107,409  

5.00%, 09/01/33

    1,005       1,107,420  
 

 

 

SCHEDULES OF INVESTMENTS      59  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Kansas (continued)  

Kansas Development Finance Authority, Refunding RB, Health Hospital Nursing Home Improvements:

   

5.00%, 11/15/19(b)

  $ 35     $ 35,040  

5.00%, 11/15/23

    1,465       1,466,685  
   

 

 

 
      8,122,112  
Kentucky — 0.5%  

Countyof Louisville/Jefferson Metropolitan Government, Refunding RB, Catholic Health Initiatives(b):

   

5.00%, 06/01/22

    120       130,984  

Series A, 5.00%, 06/01/22

    2,750       3,001,707  
   

 

 

 
      3,132,691  
Louisiana — 3.1%  

Calcasieu Parish Memorial Hospital Service District, Refunding RB, Lake Charles Memorial Hospital Project, 5.00%, 12/01/34

    200       239,766  

City of Bossier City Louisiana Utilities, Refunding RB, 5.00%, 10/01/32

    2,000       2,298,500  

Louisiana Local Government Environmental Facilities & Community Development Authority, Refunding RB, BRCC Facilities Corp. Project:

   

5.00%, 12/01/27

    3,445       3,695,451  

5.00%, 12/01/28

    3,715       3,983,297  

New Orleans Aviation Board, RB, Series A, 5.00%, 01/01/33

    1,000       1,149,980  

State of Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, 4.00%, 05/01/34

    3,000       3,170,130  

Terrebonne Levee & Conservation District, RB, Sales Tax, 5.00%, 07/01/28

    3,660       4,121,929  
   

 

 

 
      18,659,053  
Maine — 0.6%  

Finance Authority of Maine, Refunding RB, Series A-1, AMT:

   

5.00%, 12/01/28

    1,000       1,220,170  

3.00%, 12/01/29

    2,300       2,369,437  
   

 

 

 
      3,589,607  
Maryland — 1.7%  

City of Baltimore Maryland, Refunding, Tax Allocation Bonds, Harbor Point Project, Senior Lien, Series A(a):

   

2.95%, 06/01/27

    175       174,179  

3.05%, 06/01/28

    190       189,308  

3.15%, 06/01/29

    200       199,584  

City of Baltimore Maryland, Series B, 3.38%, 06/01/29(a)

    285       280,865  

City of Rockville Maryland, RB, Ingleside King Farm Project, 3.50%, 11/01/26

    1,825       1,835,567  

Maryland Economic Development Corp., RB, Transportation Facilities Project, Series A, 5.13%, 06/01/20(g)

    555       567,365  

Maryland Economic Development Corp., Refunding RB, Transportation Facilities Project, Series A:

   

5.00%, 06/01/29

    1,835       2,264,592  

5.00%, 06/01/30

    1,015       1,243,426  

5.00%, 06/01/31

    1,000       1,220,300  

5.00%, 06/01/32

    1,000       1,215,420  

Maryland Health & Higher Educational Facilities Authority, RB, Johns Hopkins Health System, Series B, 5.00%, 07/01/33

    1,140       1,248,175  
   

 

 

 
      10,438,781  
Massachusetts — 1.7%  

Massachusetts Development Finance Agency, Refunding RB:

   

Emerson College Issue, Series A, 5.00%, 01/01/31

    1,730       1,978,203  

Suffolk University, 5.00%, 07/01/29

    2,700       3,255,822  

Suffolk University, 5.00%, 07/01/30

    3,125       3,751,031  

Massachusetts Health & Educational Facilities Authority, Refunding RB, Winchester Hospital, 5.00%, 07/01/20(b)

    1,060       1,086,712  
   

 

 

 
      10,071,768  
Security   Par
(000)
    Value  
Michigan — 3.3%  

City of Detroit Michigan, GO:

   

5.00%, 04/01/26

  $ 265     $ 296,628  

5.00%, 04/01/27

    210       237,437  

5.00%, 04/01/28

    235       268,086  

5.00%, 04/01/29

    235       266,878  

5.00%, 04/01/30

    180       207,545  

5.00%, 04/01/31

    265       298,438  

5.00%, 04/01/32

    225       252,396  

5.00%, 04/01/33

    295       329,603  

Manistee Area Public Schools, GO, Refunding, (Q-SBLF), 5.00%, 05/01/25

    1,000       1,054,490  

Michigan Finance Authority, Refunding RB, Senior Lien, Detroit Water and Sewer, Series C-3 (AGM), 5.00%, 07/01/31

    4,000       4,618,120  

Michigan State Building Authority, Refunding RB, Facilities Program, Series II-A, 5.00%, 10/15/24

    2,500       2,681,450  

Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.25%, 11/15/19(b)

    3,300       3,304,653  

Michigan Strategic Fund, RB, I -75 Improvement Projects, AMT:

   

5.00%, 06/30/33

    2,415       2,933,959  

5.00%, 12/31/33

    2,000       2,422,340  

Michigan Strategic Fund, Refunding RB, Holland Home Obligated Group:

   

5.00%, 11/15/29

    440       514,747  

5.00%, 11/15/34

    490       564,068  
   

 

 

 
      20,250,838  
Minnesota — 2.0%  

City of Minneapolis, RB, YMCA of the Greater Twin Cities Project:

   

4.00%, 06/01/30

    150       164,850  

4.00%, 06/01/31

    50       54,766  

City of Minneapolis, Refunding RB, Fairview Health Services, Series A, 5.00%, 11/15/33

    2,370       2,940,909  

County of St. Paul Minnesota Housing & Redevelopment Authority, RB, Great River School Project, Series A, 4.75%, 07/01/29(a)

    250       269,213  

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

   

5.00%, 02/15/33

    1,000       1,203,580  

5.00%, 02/15/34

    1,185       1,419,677  

University of Minnesota, RB, Biomedical Science Research Facilities Funding Program:

   

Series B, 5.00%, 08/01/36

    1,000       1,061,230  

Series C, 5.00%, 08/01/27

    1,390       1,571,381  

Series C, 5.00%, 08/01/28

    740       835,778  

Series C, 5.00%, 08/01/29

    1,555       1,754,538  

Series C, 5.00%, 08/01/30

    835       940,937  
   

 

 

 
      12,216,859  
Missouri — 0.3%  

City of St. Louis Missouri IDA, Refunding RB, Ballpark Village Development Project, Series A, 3.88%, 11/15/29

    350       379,355  

St. Louis County Industrial Development Authority, Refunding RB, Friendship Village St. Louis Obligated Group:

   

5.00%, 09/01/27

    360       414,871  

5.00%, 09/01/32

    1,015       1,187,763  
   

 

 

 
      1,981,989  
Montana — 0.1%  

County of Yellowstone Montana School District No. 2 Billings, GO, 5.00%, 06/15/30

    500       577,490  
   

 

 

 
Nebraska — 0.9%  

County of Douglas Nebraska Hospital Authority No. 3, Refunding RB, 5.00%, 11/01/30

    800       935,240  
 

 

 

60    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Nebraska (continued)  

County of Lancaster Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, 5.50%, 01/01/30

  $ 1,000     $ 1,006,610  

Nebraska Public Power District, Refunding RB, Series A:

   

5.00%, 01/01/30

    1,000       1,077,320  

5.00%, 01/01/32

    2,000       2,152,080  
   

 

 

 
      5,171,250  
Nevada — 1.1%  

City of Reno Nevada, Refunding RB, Series A-1 (AGM), 5.00%, 06/01/31

    1,000       1,194,920  

County of Clark Nevada Department of Aviation, Refunding RB, 5.00%, 07/01/33

    5,000       5,703,000  
   

 

 

 
      6,897,920  
New Hampshire — 0.3%  

New Hampshire Business Finance Authority, RB, VRDN, Casella Waste Systems, Inc. Project, AMT, 2.95%, 04/01/29(a)

    1,000       1,002,940  

New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project, Series A, AMT, 4.00%, 11/01/27(a)

    795       839,949  
   

 

 

 
      1,842,889  
New Jersey — 23.8%  

County of Essex New Jersey Improvement Authority, LRB, Newark Project, Series A (AGM), 5.00%, 11/01/20(g)

    698       723,777  

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

    6,040       6,512,630  

New Jersey EDA, RB, Goethals Bridge Replacement Project, Private Activity Bond AMT:

   

5.50%, 01/01/26

    1,500       1,731,600  

5.50%, 01/01/27

    1,000       1,152,740  

New Jersey EDA, Refunding ARB, Port Newark Container Terminal LLC Project, AMT:

   

5.00%, 10/01/26

    2,135       2,551,047  

5.00%, 10/01/27

    1,680       2,040,041  

New Jersey EDA, Refunding RB:

   

New Jersey American Water Co., Series E, AMT, 4.70%, 12/01/25

    3,000       3,103,350  

School Facilities Construction, Series EE, 5.00%, 09/01/23

    3,465       3,620,925  

New Jersey Educational Facilities Authority, RB, Higher Education Facilities Trust Fund, 5.00%, 06/15/28

    10,000       11,247,000  

New Jersey Educational Facilities Authority, Refunding RB, 5.00%, 07/01/30

    5,000       5,879,200  

New Jersey Higher Education Student Assistance Authority, Refunding RB:

   

AMT, Series B, 5.00%, 12/01/27

    1,000       1,224,230  

AMT, Series B, 5.00%, 12/01/28

    1,000       1,230,820  

Series 1, AMT, 5.50%, 12/01/26

    700       752,381  

Series 1B, AMT, 2.95%, 12/01/28

    770       785,300  

Student Loan, Series 1A, 4.75%, 12/01/21

    1,060       1,062,290  

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/32

    12,000       13,970,160  

New Jersey State Turnpike Authority, Refunding RB, Series B, 5.00%, 01/01/29

    6,000       6,670,980  

New Jersey Transportation Trust Fund Authority, RB:

   

Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/30

    2,000       2,332,240  

Series B, 5.25%, 06/15/26

    3,500       3,693,305  

Transportation Program, Series AA, 5.25%, 06/15/31

    12,000       13,359,120  

Transportation Program, Series AA, 5.25%, 06/15/32

    2,250       2,551,433  

Transportation System, Series A, 5.25%, 06/15/24

    3,185       3,365,175  

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

    11,780       12,428,960  

Transportation System, Series C, 5.25%, 06/15/32

    10,000       11,265,100  
Security   Par
(000)
    Value  
New Jersey (continued)  

New Jersey Transportation Trust Fund Authority, Refunding RB, Series A:

   

Federal Highway Reimbursement Revenue Notes, 5.00%, 06/15/30

  $ 1,695     $ 1,976,573  

Transportation System, 5.00%, 12/15/33

    2,285       2,676,009  

Newark Housing Authority, RB, Series A:

   

5.00%, 12/01/23

    1,230       1,362,225  

5.00%, 12/01/25

    1,345       1,503,831  

South Jersey Port Corp., ARB, Sobordinated Marine Terminal, Series B, AMT:

   

5.00%, 01/01/29

    250       301,640  

5.00%, 01/01/30

    200       239,668  

5.00%, 01/01/31

    350       417,771  

5.00%, 01/01/32

    425       505,627  

State of New Jersey, GO, Various Purposes, 5.00%, 06/01/28

    5,000       5,828,250  

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

   

5.00%, 06/01/30

    850       1,041,488  

5.00%, 06/01/32

    11,980       14,555,700  

Tobacco Settlement Bonds, 5.00%, 06/01/33

    220       266,026  
   

 

 

 
      143,928,612  
New Mexico — 1.2%  

Albuquerque Municipal School District No. 12, GO, Series 2017, 5.00%, 08/01/30

    1,250       1,525,738  

City of Santa Fe New Mexico, RB, EL Castillo Retirement Residences Project, Series A, 5.00%, 05/15/34(c)

    170       193,004  

County of Albuquerque Bernalillo New Mexico Water Utility Authority, Refunding RB, 4.00%, 07/01/33

    2,510       2,806,858  

New Mexico Hospital Equipment Loan Council, Refunding RB, 5.00%, 08/01/31

    2,500       2,935,200  
   

 

 

 
      7,460,800  
New York — 7.9%  

Build NYC Resource Corp., RB, Inwood Academy for Leadership Charter School Project, Series A, 4.88%, 05/01/31(a)

    450       488,200  

Build NYC Resource Corp., Refunding RB, Manhattan College Project, 5.00%, 08/01/35

    665       804,284  

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       831,040  

4.50%, 06/01/27

    1,710       1,897,399  

5.00%, 06/01/35

    415       462,169  

County of Monroe New York Industrial Development Corp., Refunding RB, Series A, 5.00%, 07/01/23(b)

    5,695       6,495,546  

County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien, Remarketing, Series A:

   

5.00%, 11/01/24

    5,470       5,835,232  

5.00%, 11/01/30

    655       696,311  

Metropolitan Transportation Authority, RB(b):

   

Sub-Series B-1, 5.00%, 11/15/21

    2,300       2,481,148  

Sub-Series B-4, 5.00%, 11/15/21

    1,500       1,618,140  

New York City Trust for Cultural Resources, Refunding RB, Carnegie Hall, Series A, 5.00%, 12/01/29

    2,750       2,756,215  

Niagara Area Development Corp., Refunding RB, Covanta Project, Series B, 3.50%, 11/01/24(a)

    1,000       1,043,750  

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, Series 8, 5.00%, 12/01/20

    865       882,326  

State of New York Dormitory Authority, RB, Series A:

   

Fordham University, 5.25%, 07/01/21(b)

    900       962,019  

Icahn School of Medicine at Mount Sinai, 5.00%, 07/01/32

    9,000       10,542,240  

New York University Hospitals Center, 5.00%, 07/01/20(b)

    1,725       1,769,298  

New York University Hospitals Center, 5.13%, 07/01/20(b)

    1,670       1,714,255  
 

 

 

SCHEDULES OF INVESTMENTS      61  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

State of New York Dormitory Authority, Refunding RB:

   

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/32

  $ 3,060     $ 3,541,338  

Orange Regional Medical Center, 5.00%, 12/01/27(a)

    900       1,088,622  

Orange Regional Medical Center, 5.00%, 12/01/28(a)

    1,800       2,175,300  
   

 

 

 
      48,084,832  
North Carolina — 0.3%  

North Carolina Medical Care Commission, Refunding RB, WakeMed, Series A, 5.00%, 10/01/31

    1,500       1,641,915  
   

 

 

 
Ohio — 1.4%  

Ohio Air Quality Development Authority, Refunding RB, Ohio Valley Electric Corp., 3.25%, 09/01/29

    1,550       1,595,648  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 02/15/31

    6,000       6,738,780  
   

 

 

 
      8,334,428  
Oklahoma — 1.3%  

Oklahoma City Public Property Authority, Refunding RB:

   

5.00%, 10/01/27

    1,190       1,413,934  

5.00%, 10/01/28

    1,265       1,498,987  

5.00%, 10/01/29

    1,400       1,655,710  

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

   

5.00%, 08/15/29

    1,200       1,474,728  

5.00%, 08/15/33

    1,305       1,562,490  
   

 

 

 
      7,605,849  
Oregon — 1.4%  

County of Klamath Oregon School District, GO:

   

5.00%, 06/15/30

    1,000       1,129,610  

5.00%, 06/15/31

    1,000       1,128,430  

County of Umatilla Oregon School District No. 16R Pendleton, GO, Series A, 5.00%, 06/15/32

    2,000       2,319,320  

Oregon State Facilities Authority, Refunding RB, Reed College Project, Series A, 5.00%, 07/01/20(b)

    1,835       1,881,077  

State of Oregon, GO, Series H, 5.00%, 05/01/22(b)

    2,000       2,188,080  
   

 

 

 
      8,646,517  
Pennsylvania — 7.0%  

Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project(a):

   

5.00%, 05/01/22

    1,545       1,617,414  

5.00%, 05/01/23

    640       679,610  

5.00%, 05/01/28

    835       976,332  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

   

5.00%, 06/01/33

    2,000       2,441,260  

5.00%, 06/01/34

    3,750       4,561,612  

County of Allegheny Pennsylvania, GO, Refunding, Series C-68, 5.00%, 11/01/25

    2,515       2,698,520  

County of Allegheny Pennsylvania, GO, Series C-67:

   

5.00%, 11/01/25

    2,700       2,897,046  

5.00%, 11/01/26

    2,375       2,547,449  

Pennsylvania Economic Development Financing Authority, RB, PA Bridges Finco LP, AMT, 5.00%, 12/31/28

    115       136,125  

Pennsylvania Turnpike Commission, RB, Sub-Series B, 5.25%, 12/01/21(b)

    4,000       4,333,320  

Pennsylvania Turnpike Commission, Refunding RB:

   

Second Series, 5.00%, 12/01/30

    2,620       3,188,619  

Sub-Series B, 5.00%, 06/01/32

    5,000       5,991,600  

School District of Philadelphia, GOL, Series A:

   

5.00%, 09/01/30

    1,200       1,476,408  

5.00%, 09/01/31

    1,000       1,225,430  

5.00%, 09/01/32

    1,200       1,464,696  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

South Fork Municipal Authority, Refunding RB, Conemaugh Valley Memorial Hospital, Series A (AGC),
6.00%, 07/01/20(b)

  $ 6,225     $ 6,416,232  
   

 

 

 
      42,651,673  
Puerto Rico — 3.2%  

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

   

CAB, Series A-1, 0.00%, 07/01/27(f)

    11,551       9,217,236  

Series A-1, 4.50%, 07/01/34

    4,365       4,660,423  

Series B-1, 0.00%, 07/01/27(f)

    2,521       2,015,641  

Series B-1, 0.00%, 07/01/29(f)

    4,466       3,351,465  
   

 

 

 
      19,244,765  
Rhode Island — 1.7%  

Providence Redevelopment Agency, Refunding RB, Series A, 5.00%, 04/01/29

    1,000       1,174,580  

Rhode Island Health & Educational Building Corp., RB, City of Newport Issue Financing Program, Series C, 5.00%, 05/15/30

    2,305       2,518,904  

Rhode Island Health & Educational Building Corp., Refunding RB, 5.00%, 09/01/32

    2,000       2,267,220  

Rhode Island Student Loan Authority, RB, AMT, Senior Program, Series A:

   

5.00%, 12/01/27

    1,000       1,215,090  

5.00%, 12/01/28

    1,000       1,232,410  

Rhode Island Student Loan Authority, Refunding RB, Senior Series A, AMT:

   

5.00%, 12/01/24

    750       863,543  

5.00%, 12/01/25

    850       999,404  
   

 

 

 
      10,271,151  
South Carolina — 2.5%  

South Carolina Jobs-Economic Development Authority, Refunding RB, The Woodlands at Furman, 4.00%, 11/15/27

    825       853,405  

South Carolina Public Service Authority, Refunding RB, Series A:

   

5.00%, 12/01/30

    5,500       6,494,565  

5.00%, 12/01/31

    5,660       6,669,008  

5.00%, 12/01/32

    200       235,378  

5.00%, 12/01/33

    800       939,888  
   

 

 

 
      15,192,244  
South Dakota — 0.2%  

South Dakota Health & Educational Facilities Authority, Refunding RB, Regional Health, 5.00%, 09/01/20(b)

    1,000       1,031,150  
   

 

 

 
Tennessee — 1.9%  

County of Memphis-Shelby Industrial Development Board, Refunding, Tax Allocation Bonds, Graceland Project, Series A, 4.75%, 07/01/27

    205       219,735  

County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A, 5.00%, 11/01/23

    2,695       2,695,000  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, Refunding RB, Trevecca Nazarene University Project:

   

5.00%, 10/01/29

    350       415,037  

5.00%, 10/01/34

    450       531,027  

Knox County Health Educational & Housing Facility Board Tennessee, Refunding RB, Eastowne Village Project, 4.00%, 06/01/31(h)

    2,800       2,832,200  

Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/35

    4,000       4,685,560  
   

 

 

 
      11,378,559  
 

 

 

62    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas — 10.4%  

City of Grapevine Texas, GO, 5.00%, 02/15/33

  $ 5,685     $ 6,320,810  

City of Houston Texas, Refunding ARB, Subordinate Lien, Series A, AMT:

   

5.00%, 07/01/25

    1,500       1,587,630  

5.00%, 07/01/32

    1,010       1,091,951  

City of Houston Texas Airport System Revenue, Refunding ARB, Sub-Series A, AMT:

   

5.00%, 07/01/31

    1,430       1,759,672  

5.00%, 07/01/32

    1,515       1,856,557  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/33

    8,485       10,466,757  

Dallas-Fort Worth International Airport, ARB, Joint Improvement, Series D, AMT, 5.00%, 11/01/38

    8,290       8,794,281  

Dallas-Fort Worth International Airport, Refunding RB, AMT(b):

   

Series E, 5.00%, 11/01/20

    2,185       2,262,305  

Series E, 5.00%, 11/01/20

    4,960       5,136,477  

Series F, 5.00%, 11/01/20

    6,345       6,570,755  

Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, AMT, 5.00%, 11/01/28

    1,000       1,083,730  

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

    1,475       1,598,310  

New Hope Cultural Education Facilities Finance Corp., RB, Jubilee Academic Center Project, Series A(a):

   

3.63%, 08/15/22

    100       101,790  

4.25%, 08/15/27

    160       163,166  

Red River Education Financing Corp., RB, 5.00%, 03/15/33

    1,340       1,490,978  

San Jacinto River Authority, RB, Special Project (AGM), 5.25%, 10/01/25

    2,910       2,918,381  

Socorro Independent School District, GO, Refunding(PSF-GTD):

   

5.00%, 08/15/20(b)

    2,410       2,479,456  

5.00%, 08/15/32

    90       92,530  

Via Metropolitan Transit Authority, Refunding RB:

   

5.25%, 08/01/28

    1,585       1,805,252  

5.25%, 08/01/29

    1,720       1,956,964  

5.25%, 08/01/33

    3,000       3,395,700  
   

 

 

 
      62,933,452  
U.S. Virgin Islands — 0.8%  

Virgin Islands Public Finance Authority, Refunding RB, Series A (AGM), 5.25%, 10/01/24

    4,300       4,663,651  
   

 

 

 
Utah — 1.0%  

Salt Lake City Corp. Airport Revenue, ARB, AMT, Series A, 5.00%, 07/01/33

    3,500       4,263,035  

Utah Charter School Finance Authority, RB, Wallace Stegner Academy Project, Series A, 3.63%, 06/15/29(a)

    480       483,970  

Utah Charter School Finance Authority, Refunding RB, Freedom Academy Foundation Project, 4.50%, 06/15/27(a)

    1,500       1,570,275  
   

 

 

 
      6,317,280  
Vermont — 1.0%  

University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/30

    5,565       6,152,497  
   

 

 

 
Washington — 0.4%  

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

   

Horizon House Project, 5.00%, 01/01/28

    750       881,198  

Horizone House Project, 5.00%, 01/01/27

    1,560       1,836,853  
   

 

 

 
      2,718,051  
West Virginia — 0.3%  

West Virginia University, RB, West Virginia University Project, Series B, 5.00%, 10/01/30

    1,500       1,600,125  
   

 

 

 
Security   Par
(000)
    Value  
Wisconsin — 1.4%  

Public Finance Authority, RB, Piedmont Community Charter School, 5.00%, 06/15/34

  $ 430     $ 507,258  

Public Finance Authority, Refunding RB:

   

AMT, National Gypsum Co., 5.25%, 04/01/30

    2,410       2,650,856  

Penick Village Obligation Group, 4.00%, 09/01/29(a)(c)

    155       161,054  

Wisconsin Airport Facilities, Senior Obligated Group, Series B, AMT, 5.25%, 07/01/28

    4,765       5,182,795  
   

 

 

 
      8,501,963  
   

 

 

 

Total Municipal Bonds — 134.5%
(Cost — $761,391,589)

 

    815,105,705  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(i)

 

California — 4.0%

 

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Subordinate, 4.00%, 04/01/31(j)

    8,080       9,383,627  

State of California, GO, Refunding Water Utility Authority, 5.00%, 10/01/35

    12,500       14,972,996  
   

 

 

 
      24,356,623  
Iowa — 1.3%  

Iowa Finance Authority, Refunding RB, UnityPoint Health, Series C, 4.13%, 02/15/35

    7,500       8,079,750  
   

 

 

 
Massachusetts — 3.3%  

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System:

   

5.00%, 07/01/32

    7,500       9,384,825  

Series L, 5.00%, 07/01/21(b)

    5,225       5,548,357  

Series L, 5.00%, 07/01/31

    4,950       5,256,339  
   

 

 

 
      20,189,521  
Minnesota — 1.8%  

State of Minnesota, GO, State Various Purposes, Series A, 4.00%, 08/01/20(b)

    10,525       10,737,710  
   

 

 

 
New Jersey — 1.5%  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F, AMT, Series BB:

   

3.65%, 04/01/28

    4,781       5,163,111  

3.70%, 10/01/28

    3,705       4,001,091  
   

 

 

 
      9,164,202  
New York — 10.0%  

City of New York, GO:

   

Sub-Series 1-I, 5.00%, 03/01/32

    7,009       8,051,675  

Refunding Series E, 5.00%, 08/01/19(b)

    722       723,872  

Refunding Series E, 5.00%, 08/01/27

    1,766       1,771,033  

City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Future Tax Secured Subordinate Bonds, Sub-Series B-1, 5.00%, 08/01/36

    9,444       11,296,761  

Metropolitan Transportation Authority, RB, Sub-Series D-1, 5.00%, 11/15/39

    4,980       5,676,403  

Metropolitan Transportation Authority, Refunding RB, Series B, 5.25%, 11/15/19(b)

    4,001       4,005,869  

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

   

178th Series, AMT, 5.00%, 12/01/32

    4,009       4,522,603  

Consolidated, Series 169th, 5.00%, 10/15/26

    5,530       5,909,303  

Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 5.00%, 10/15/31

    5,010       5,865,107  

State of New York Dormitory Authority, Refunding RB, Series A, 5.00%, 03/15/36(j)

    5,505       6,595,100  

State of New York Urban Development Corp., RB, Personal Income Tax, Series A-1, 5.00%, 03/15/32

    5,501       6,156,853  
   

 

 

 
      60,574,579  
 

 

 

SCHEDULES OF INVESTMENTS      63  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas — 1.4%  

Pflugerville Independent School District, GO, (PSF-GTD), 5.00%, 02/15/24(b)

  $ 7,500     $ 8,664,825  
   

 

 

 
Washington — 3.0%  

Port of Seattle Washington, ARB, AMT, Series A, 5.00%, 05/01/34

    15,000       17,812,050  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 26.3%
(Cost — $149,985,027)

 

    159,579,260  
 

 

 

 

Total Long-Term Investments — 160.8%
(Cost — $911,376,616)

 

    974,684,965  
 

 

 

 

Total Investments — 160.8%
(Cost — $911,376,616)

 

    974,684,965  

Other Assets Less Liabilities — 1.9%

 

    11,343,536  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (15.3)%

 

    (92,933,047

VMTP Shares at Liquidation Value — (47.4)%

 

    (287,100,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 605,995,454  
 

 

 

 
(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) 

When-issued security.

(d) 

Issuer filed for bankruptcy and/or is in default.

(e) 

Non-income producing security.

(f) 

Zero-coupon bond.

(g) 

Security is collateralized by municipal bonds or U.S. Treasury obligations.

(h) 

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.

(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 agreements, which expire between September 15, 2024 to April 1, 2025, is $10,032,537. See Note 4 of the Notes to Financial Statements for details.

 

During the six months ended October 31, 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
04/30/19
     Net
Activity
     Shares
Held at
10/31/19
     Value at
10/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class(b)

     3,435,688        (3,435,688           $      $ 9,275      $ 506      $ 343  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

As of period end, the entity is no longer held by the Fund.

 

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

     132          12/19/19        $ 17,199        $ 21,287  

Long U.S. Treasury Bond

     22          12/19/19          3,550          20,572  

5-Year U.S. Treasury Note

     62          12/31/19          7,391          12,352  
                 

 

 

 
                  $ 54,211  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
    

Interest

Rate
Contracts

     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

 

     

Futures contracts

                    

Unrealized appreciation on futures contract(a)

   $      $      $      $      $ 54,211      $      $ 54,211  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements 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).

 

 

 

64    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

 

For the six months ended October 31, 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

   $      $      $      $      $ (2,523,638    $      $ (2,523,638
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

 

     

Futures contracts

   $      $      $      $      $ 301,292      $      $ 301,292  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 32,866,106  

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)

   $        $ 974,684,965        $        $ 974,684,965  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 54,211        $        $             —        $ 54,211  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

   $        $ (92,611,847      $        $ (92,611,847

VMTP Shares at Liquidation Value

              (287,100,000                 (287,100,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $                 —        $ (379,711,847      $                 —        $ (379,711,847
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      65  


Schedule of Investments  (unaudited)

October 31, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 130.7%

 

Alabama — 1.6%  

County of Jefferson Alabama Sewer, Refunding RB:

   

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

  $ 805     $ 908,700  

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

    3,575       4,211,207  
   

 

 

 
      5,119,907  
Alaska — 0.1%  

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 4.63%, 06/01/23

    175       175,212  
   

 

 

 
Arizona — 0.5%  

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

    1,685       1,788,493  
   

 

 

 
Arkansas — 0.8%  

Arkansas Development Finance Authority, RB, Big River Steel Project, AMT, 4.50%, 09/01/49(a)

    2,455       2,599,280  
   

 

 

 
California — 8.5%  

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

    2,095       3,207,613  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20(b)

    3,170       3,292,520  

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

    890       1,004,561  

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

    1,475       1,584,238  

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

   

5.25%, 08/15/39

    145       162,571  

5.25%, 08/15/49

    370       410,970  

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

    225       265,025  

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

    1,495       1,593,670  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A(a):

   

5.00%, 12/01/41

    290       326,044  

5.00%, 12/01/46

    455       508,485  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior, Series A, 5.00%, 05/15/40

    5,930       6,043,915  

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

    360       418,007  

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

    2,745       2,825,566  

San Marcos Unified School District, GO, CAB, Election of 2010, Series B, 0.00%, 08/01/42(c)

    2,000       1,048,080  

State of California, GO, Various Purposes, 6.00%, 03/01/33

    2,525       2,565,198  

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

   

Series I, 5.00%, 11/01/38

    775       874,611  

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

    1,185       1,185,000  

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

    260       260,289  
   

 

 

 
      27,576,363  
Colorado — 1.3%  

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

    1,705       2,186,219  
Security   Par
(000)
    Value  
Colorado (continued)  

Colorado Health Facilities Authority, Refunding RB, Commonspirit Health:

   

Series A, 4.00%, 08/01/44

  $ 305     $ 328,738  

Series A-2, 4.00%, 08/01/49

    1,460       1,561,222  
   

 

 

 
      4,076,179  
Connecticut — 0.4%  

State of Connecticut Health & Educational Facility Authority, RB, Ascension Health Senior Credit, Series A, 5.00%, 11/15/40

    1,375       1,376,581  
   

 

 

 
Delaware — 2.1%  

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

    1,125       1,171,766  

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

    1,165       1,328,415  

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

    4,065       4,180,974  
   

 

 

 
      6,681,155  
District of Columbia — 5.4%  

District of Columbia, Refunding RB:

   

Georgetown University, 5.00%, 04/01/35

    435       523,183  

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

    355       419,890  

Kipp Charter School, Series A, 6.00%, 07/01/23(b)

    240       280,697  

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

    2,315       2,728,343  

Metropolitan Washington Airports Authority, Refunding ARB:

   

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

    2,010       2,147,303  

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

    6,515       4,009,201  

Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, CAB, 2nd Senior Lien, Series B (AGC)(c):

   

0.00%, 10/01/33

    6,590       4,423,867  

0.00%, 10/01/34

    4,830       3,107,284  
   

 

 

 
      17,639,768  
Florida — 5.1%  

Celebration Pointe Community Development District, Special Assessment Bonds, County of Alachua Florida(a):

   

5.00%, 05/01/32

    470       508,888  

5.00%, 05/01/48

    1,175       1,241,540  

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

    1,340       1,525,630  

County of Collier Health Facilities Authority, RB, Moorings, Inc., Series A, 5.00%, 05/01/48

    1,190       1,399,226  

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

    1,165       1,209,445  

County of Palm Beach Health Facilities Authority, RB, Acts Retirement-Life Communities, Inc., 5.00%, 11/15/45

    4,500       5,128,920  

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

    3,015       3,354,580  

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

    2,170       2,326,435  
   

 

 

 
      16,694,664  
Georgia — 5.4%  

Country of Fulton Development Authority, Refunding RB, Robert W. Woodruff Arts Center, Inc. Project, 4.00%, 03/15/44

    5,000       5,297,250  

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

    1,825       1,979,541  

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

    515       606,469  

DeKalb Georgia Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/19(b)

    130       130,160  
 

 

 

66    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Georgia (continued)  

Georgia Housing & Finance Authority, Refunding RB, S/F Housing, Mortgage Bonds, Series A, 3.60%, 12/01/44

  $ 1,435     $ 1,484,780  

Glynn-Brunswick Memorial Hospital Authority, RB, Southeast Georgia Health System Project, 5.00%, 08/01/47

    2,500       2,783,575  

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

   

5.00%, 05/15/35

    490       634,756  

5.00%, 05/15/36

    490       639,068  

5.00%, 05/15/37

    540       708,777  

5.00%, 05/15/38

    295       387,742  

5.00%, 05/15/49

    985       1,327,701  

Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project, 4.00%, 01/01/49

    1,560       1,646,658  
   

 

 

 
      17,626,477  
Hawaii — 0.4%  

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

    1,355       1,390,758  
   

 

 

 
Idaho — 0.3%  

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

    745       888,256  
   

 

 

 
Illinois — 14.6%  

Chicago Board of Education, GO, Series D:

   

Dedicated Revenues, Series H, 5.00%, 12/01/36

    450       513,995  

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

    1,465       1,615,939  

Chicago Board of Education, GO, Refunding:

   

Dedicated Revenues, Series C, 5.00%, 12/01/25

    815       926,003  

Dedicated Revenues, Series F, 5.00%, 12/01/24

    615       689,476  

Dedicated Revenues, Series G, 5.00%, 12/01/34

    450       515,587  

Series C, 5.00%, 12/01/25

    645       732,849  

Chicago Board of Education, GO:

   

5.00%, 12/01/46

    535       610,521  

5.00%, 12/01/46

    1,380       1,474,751  

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

    778       779,610  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series C, 6.50%, 01/01/21(b)

    5,865       6,217,545  

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

    1,050       1,118,229  

City of Chicago Illinois Waterworks, Refunding RB:

   

2nd Lien (AGM), 5.25%, 11/01/33

    260       260,645  

2nd Lien Project, 5.00%, 11/01/42

    915       978,492  

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

    805       864,997  

Illinois Finance Authority, RB, Chicago LLC, University of Illinois at Chicago Project, Series A:

   

5.00%, 02/15/47

    200       223,526  

5.00%, 02/15/50

    100       111,586  

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

    1,610       1,610,000  

Metropolitan Pier & Exposition Authority, Refunding RB:

   

McCormick Place Expansion Project, Series B (AGM), 0.00%, 06/15/43(c)

    5,175       2,285,590  

McCormick Place Expansion Project, Series B (AGM), 5.00%, 06/15/50

    4,315       4,405,572  

McCormick Place Expansion Project, Series B-2, 5.00%, 06/15/50

    2,500       2,525,300  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    440       469,036  

6.00%, 06/01/21

    1,140       1,223,813  

Regional Transportation Authority, RB:

   

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

    180       189,887  

Series A (NPFGC), 6.70%, 11/01/21

    1,765       1,900,764  

Series C (NPFGC), 7.75%, 06/01/20

    505       522,963  
Security   Par
(000)
    Value  
Illinois (continued)  

State of Illinois, GO:

   

5.00%, 02/01/39

  $ 1,540     $ 1,642,164  

Series A, 5.00%, 04/01/35

    3,000       3,179,010  

Series A, 5.00%, 04/01/38

    3,490       3,692,071  

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

    2,800       3,200,344  

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

    985       1,093,330  

Village of Hodgkins Illinois, RB, Metropolitan Biosolids Management LLC Project, AMT, 6.00%, 11/01/23

    1,975       1,981,636  
   

 

 

 
      47,555,231  
Indiana — 3.5%  

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

   

6.75%, 01/01/34

    790       916,139  

7.00%, 01/01/44

    1,905       2,165,814  

Indiana Finance Authority, RB, Series A:

   

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

    3,280       3,499,990  

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

    450       488,052  

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

    1,430       1,545,730  

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

    405       441,231  

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

    840       840,000  

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

    1,270       1,397,686  
   

 

 

 
      11,294,642  
Iowa — 1.3%  

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

   

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

    2,810       3,038,397  

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

    460       493,208  

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

    410       427,478  

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

    140       143,077  
   

 

 

 
      4,102,160  
Kentucky — 1.2%  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(b)

    995       1,119,982  

Kentucky Economic Development Finance Authority, Refunding RB, Louisville Arena Authority, Inc. (AGM), 5.00%, 12/01/45

    1,235       1,437,911  

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 6.75%, 07/01/43(e)

    1,200       1,300,656  
   

 

 

 
      3,858,549  
Louisiana — 3.6%  

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

    3,320       3,466,711  

Louisiana Public Facilities Authority, Refunding RB, Tulane University of Lousiana Project, 4.00%, 12/15/50

    2,000       2,181,320  

Parish of St. John the Baptist Louisiana, Refunding RB, Marathon Oil Corporation Project(d):

   

2.10%, 06/01/37

    450       452,187  

2.20%, 06/01/37

    470       472,124  

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

   

5.50%, 05/15/30

    1,020       1,043,001  

5.25%, 05/15/31

    870       910,629  
 

 

 

SCHEDULES OF INVESTMENTS      67  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Louisiana (continued)  

5.25%, 05/15/32

  $ 1,110     $ 1,192,995  

5.25%, 05/15/33

    1,205       1,294,266  

5.25%, 05/15/35

    505       555,460  
   

 

 

 
      11,568,693  
Maryland — 0.6%  

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

    750       768,045  

Maryland Health & Higher Educational Facilities Authority, RB:

   

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

    420       499,926  

University of Maryland Medical System, Series B (NPFGC), 7.00%, 07/01/22(f)

    525       590,457  
   

 

 

 
      1,858,428  
Massachusetts — 0.3%  

Massachusetts Development Finance Agency, Refunding RB, New Bridge Charles, Inc.(a):

   

4.00%, 10/01/32

    215       232,353  

4.13%, 10/01/42

    470       492,433  

5.00%, 10/01/57

    340       371,593  
   

 

 

 
      1,096,379  
Michigan — 3.7%  

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

    4,425       4,825,285  

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

   

5.50%, 05/15/20(b)

    760       777,115  

5.50%, 05/15/36

    620       633,665  

Michigan Finance Authority, Refunding RB:

   

Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44

    880       950,594  

Trinity Health Credit Group, 5.00%, 12/01/48

    2,000       2,405,300  

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

    990       1,207,473  

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

    1,070       1,258,791  
   

 

 

 
      12,058,223  
Minnesota — 1.4%  

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

   

4.25%, 02/15/48

    2,020       2,231,090  

5.25%, 02/15/53

    2,045       2,428,233  
   

 

 

 
      4,659,323  
Mississippi — 3.1%  

County of Lowndes Mississippi, Refunding RB, Solid Waste Disposal & Pollution Control, Weyerhaeuser Co. Project, Series A, 6.80%, 04/01/22

    3,000       3,315,960  

State of Mississippi, RB, Series A:

   

5.00%, 10/15/37

    1,000       1,229,180  

4.00%, 10/15/38

    5,000       5,612,750  
   

 

 

 
      10,157,890  
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       278,361  

State of Missouri Health & Educational Facilities Authority, RB, Kansas City Art Institute, 5.00%, 09/01/48

    2,610       3,080,165  

State of Missouri Health & Educational Facilities Authority, Refunding RB:

   

Mercy Health, Series C, 5.00%, 11/15/47

    2,570       3,035,067  

St. Louis College of Pharmacy Project, 5.50%, 05/01/43

    245       264,676  
   

 

 

 
      6,658,269  
Security   Par
(000)
    Value  
Nebraska — 0.8%  

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

   

5.25%, 09/01/37

  $ 825     $ 899,110  

5.00%, 09/01/42

    1,445       1,566,842  
   

 

 

 
      2,465,952  
New Hampshire — 0.7%  

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

   

Series B, 4.63%, 11/01/42

    1,545       1,595,367  

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

    805       833,086  
   

 

 

 
      2,428,453  
New Jersey — 13.9%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,675       1,810,491  

5.25%, 11/01/44

    1,525       1,646,116  

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

    1,085       1,098,931  

New Jersey EDA, RB:

   

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

    1,955       2,132,709  

Series EEE, 5.00%, 06/15/48

    3,690       4,200,807  

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

    1,425       1,629,445  

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

    2,240       2,626,736  

New Jersey State Turnpike Authority, RB:

   

Series A, 5.00%, 01/01/43

    740       801,760  

Series E, 5.00%, 01/01/45

    2,615       2,996,476  

New Jersey Transportation Trust Fund Authority, RB:

   

Series BB, 4.00%, 06/15/50

    1,490       1,548,587  

Series BB, 5.00%, 06/15/50

    3,200       3,644,512  

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

    445       483,288  

5.00%, 06/15/44

    825       886,421  

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

    1,635       1,711,077  

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

    2,460       2,577,416  

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

    525       610,265  

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

    13,345       14,743,556  
   

 

 

 
      45,148,593  
New York — 10.2%  

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       2,104,060  

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

    1,800       1,827,396  

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45

    1,960       1,960,862  

New York Counties Tobacco Trust IV, Refunding RB, Tobacco Settlement Pass-Through Bonds, Series A, 5.00%, 06/01/38

    1,910       1,910,153  

New York Liberty Development Corp., RB, World Trade Center Port Authority Consolidated, 5.25%, 12/15/43

    10,735       11,614,948  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 01/15/20(b)

    1,220       1,232,554  

3 World Trade Center Project, Class 1, 5.00%, 11/15/44(a)

    2,860       3,144,055  

3 World Trade Center Project, Class 2, 5.15%, 11/15/34(a)

    340       375,822  

3 World Trade Center Project, Class 2, 5.38%, 11/15/40(a)

    850       955,358  

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       1,216,248  

6.00%, 12/01/42

    1,250       1,302,063  
 

 

 

68    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

State of New York Environmental Facilities Corp., RB, Subordinated SRF Bonds, Series B, 5.00%, 06/15/48

  $ 1,780     $ 2,164,266  

State of New York Thruway Authority, Refunding RB, Series B, 4.00%, 01/01/50

    2,875       3,184,494  
   

 

 

 
      32,992,279  
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       646,444  
   

 

 

 
North Dakota — 0.3%  

County of Cass North Dakota, Refunding RB, Essentia Health Obligated Group, Series B, 5.25%, 02/15/58

    950       1,121,627  
   

 

 

 
Ohio — 1.7%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.88%, 06/01/47

    3,230       3,254,257  

County of Franklin Ohio, RB:

   

Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40

    660       722,515  

Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    400       470,336  

Ohio Air Quality Development Authority, RB, AMG Vanadium Project, AMT, 5.00%, 07/01/49(a)

    730       806,212  

State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53

    275       305,440  
   

 

 

 
      5,558,760  
Oklahoma — 1.8%  

City of Oklahoma Turnpike Authority, RB, Series A, 4.00%, 01/01/48

    2,050       2,261,150  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.50%, 08/15/57

    1,155       1,376,263  

Oklahoma Turnpike Authority, RB, 2nd Series C, 4.00%, 01/01/42

    1,950       2,174,640  
   

 

 

 
      5,812,053  
Pennsylvania — 3.2%  

Allentown Neighborhood Improvement Zone Development Authority, RB, Subordinate, City Center Project(a):

   

5.00%, 05/01/28

    225       239,333  

5.13%, 05/01/32

    230       253,501  

5.38%, 05/01/42

    435       481,754  

City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42

    635       687,635  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A:

   

4.00%, 09/01/49

    555       597,052  

5.00%, 09/01/43

    1,220       1,441,638  

Lancaster IDA, RB, Willow Valley Communities Project, 5.00%, 12/01/49

    1,300       1,500,070  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 06/30/42

    850       961,537  

Aqua Pennsylvania, Inc. Project, Series B, 5.00%, 11/15/40

    1,890       1,894,952  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

    1,035       1,088,830  

Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44

    1,105       1,257,026  
   

 

 

 
      10,403,328  
Puerto Rico — 5.5%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 05/15/39

    675       685,530  

5.63%, 05/15/43

    690       700,778  
Security   Par
(000)
    Value  
Puerto Rico (continued)  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A:

   

5.00%, 07/01/33

  $ 2,430     $ 2,546,446  

5.13%, 07/01/37

    695       729,854  

Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A:

   

6.00%, 07/01/38

    720       727,430  

6.00%, 07/01/44

    1,305       1,318,402  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured:

   

Series A-1, 4.75%, 07/01/53

    1,554       1,602,765  

Series A-1, 5.00%, 07/01/58

    6,289       6,581,816  

Series A-2, 4.33%, 07/01/40

    85       86,124  

Series A-2, 4.78%, 07/01/58

    2,941       3,026,965  
   

 

 

 
      18,006,110  
Rhode Island — 2.1%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    820       922,033  

Series B, 4.50%, 06/01/45

    2,645       2,756,645  

Series B, 5.00%, 06/01/50

    2,945       3,137,309  
   

 

 

 
      6,815,987  
South Carolina — 6.8%  

South Carolina Jobs EDA, Refunding RB:

   

Anmed Health Project, 5.00%, 02/01/36

    2,505       2,885,585  

Prisma Health Obligated Group, Series A, 5.00%, 05/01/48

    3,060       3,567,807  

State of South Carolina Ports Authority, ARB:

   

5.25%, 07/01/20(b)

    3,280       3,367,412  

AMT, 5.25%, 07/01/25(b)

    225       270,972  

AMT, 5.25%, 07/01/55

    1,070       1,236,085  

State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54

    6,180       7,002,249  

State of South Carolina Public Service Authority, Refunding RB:

   

Series A, 5.00%, 12/01/50

    1,430       1,632,045  

Series E, 5.25%, 12/01/55

    1,735       2,012,825  
   

 

 

 
      21,974,980  
Tennessee — 1.0%  

City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/23(b)

    995       1,116,997  

City of Chattanooga Health Educational & Housing Facility Board, Refunding RB, Commonspirit Health, Series A, 4.00%, 08/01/44

    160       172,330  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40

    690       801,069  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A, 5.25%, 10/01/58

    955       1,158,224  
   

 

 

 
      3,248,620  
Texas — 10.3%  

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.25%, 01/01/21(b)

    2,140       2,261,937  

City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 07/01/29

    965       1,076,795  

City of San Antonio Texas Electric & Gas Systems Revenue, Refunding RB, Series A, 5.00%, 02/01/48

    1,155       1,411,237  

Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 08/15/43

    745       854,023  

County of Fort Bend Texas Industrial Development Corp., RB, NRG Energy Inc. Project, Series B, 4.75%, 11/01/42

    670       717,208  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 01/01/23(b)

    455       535,339  
 

 

 

SCHEDULES OF INVESTMENTS      69  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Christus Health, Series B, 5.00%, 07/01/48

  $ 4,545     $ 5,420,231  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project, 5.00%, 10/01/49

    1,000       1,092,680  

New Hope Cultural Education Facilities Finance Corp., Refunding RB, Jubilee Academic Center, Series A, 5.00%, 08/15/46(a)

    1,980       2,014,729  

North Texas Tollway Authority, Refunding RB, Series A, 5.00%, 01/01/38

    925       1,066,793  

San Antonio Water System, Refunding RB, Junior Lien, Series A, 5.00%, 05/15/48

    2,470       2,977,956  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:

   

LBJ Infrastructure Group LLC, 7.00%, 06/30/40

    2,000       2,075,540  

NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39

    2,775       2,797,089  

Texas Transportation Commission, RB, First Tier Toll Revenue, 5.00%, 08/01/57

    1,140       1,340,743  

Texas Water Development Board, RB, Series A, 4.00%, 10/15/49

    6,900       7,734,762  
   

 

 

 
      33,377,062  
Utah — 0.6%  

City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT:

   

5.00%, 07/01/48

    875       1,031,494  

5.00%, 07/01/47

    915       1,065,151  
   

 

 

 
      2,096,645  
Virginia — 1.9%  

County of Front Royal & Warren IDA, RB, Valley Health System Obligated Group, 4.00%, 01/01/50

    1,160       1,248,577  

Lexington Industrial Development Authority, RB, Kendal st Lexington, Series A, 5.00%, 01/01/48

    820       893,948  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:

   

5.25%, 01/01/32

    1,615       1,763,063  

6.00%, 01/01/37

    1,940       2,147,483  
   

 

 

 
      6,053,071  
Washington — 1.7%  

Port of Seattle Washington, ARB, Series A, AMT, 5.00%, 05/01/43

    1,465       1,710,168  

Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40

    755       849,926  

Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45

    2,290       2,566,953  

Washington Health Care Facilities Authority, Refunding RB, Commonspirit Health, Series A, 4.00%, 08/01/44

    340       366,200  
   

 

 

 
      5,493,247  
Wisconsin — 0.8%  

State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33

    2,465       2,467,859  
   

 

 

 

Total Municipal Bonds — 130.7%
(Cost — $391,717,239)

 

    424,611,950  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(g)

 

California — 5.1%

 

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, 4.00%, 04/01/42(h)

    3,057       3,400,939  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19(b)

    9,480       9,480,000  
Security   Par
(000)
    Value  
California (continued)  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

  $ 3,075     $ 3,665,618  
   

 

 

 
      16,546,557  
Colorado — 0.8%  

City & County of Denver Colorado Airport System Revenue, Refunding ARB, Subordinate System, Series A, AMT, 5.25%, 12/01/48(h)

    2,252       2,715,787  
   

 

 

 
Florida — 1.8%  

County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/20(b)

    5,679       5,875,153  
   

 

 

 
Illinois — 1.1%  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C:

   

4.00%, 02/15/27(b)

    6       6,777  

4.00%, 02/15/41

    3,219       3,504,004  
   

 

 

 
      3,510,781  
Massachusetts — 3.1%  

Commonwealth of Massachusetts Transportation Fund Revenue, RB, Rail Enhancement Program, Series A, 4.00%, 06/01/45

    2,043       2,203,509  

Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 5.00%, 07/01/47

    4,574       5,455,956  

Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41

    2,266       2,416,719  
   

 

 

 
      10,076,184  
New York — 5.9%  

Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(h):

   

5.75%, 02/15/21(b)

    997       1,052,658  

5.75%, 02/15/47

    613       647,564  

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(h)

    6,440       6,982,757  

Port Authority of New York & New Jersey, Refunding ARB, Series194th, 5.25%, 10/15/55

    2,595       3,085,948  

State of New York Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/46

    6,617       7,458,159  
   

 

 

 
      19,227,086  
North Carolina — 0.9%  

North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55

    2,550       2,987,147  
   

 

 

 
Pennsylvania — 0.9%  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    2,340       2,813,195  
   

 

 

 
Rhode Island — 0.5%  

Narragansett Bay Commission, Refunding RB, Wastewater System, Series A, 4.00%, 09/01/43

    1,530       1,599,217  
   

 

 

 
Texas — 3.2%  

City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43

    2,520       2,773,940  

County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41

    3,400       3,623,278  

Lower Colorado River Authority, Refunding RB, LCRA Transmission Services Corporation Project, 4.00%, 05/15/43

    2,030       2,112,284  

University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43

    1,831       1,997,080  
   

 

 

 
    10,506,582  
 

 

 

70    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2019

  

BlackRock MuniVest Fund II, Inc. (MVT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Wisconsin — 1.0%        

State of Wisconsin Health & Educational Facilities Authority, Refunding RB, The Medical College of Wisconsin, Inc.,
4.00%, 12/01/46

  $ 2,833     $ 3,051,179  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 24.3%
(Cost — $74,199,095)

 

    78,908,868  
   

 

 

 

Total Investments — 155.0%
(Cost — $465,916,334)

 

    503,520,818  

Other Assets Less Liabilities — 2.1%

 

    6,704,042  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.0)%

 

    (45,337,292

VMTP Shares at Liquidation Value — (43.1)%

 

    (140,000,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 324,887,568  
   

 

 

 
(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 June 1, 2026, is $8,181,471. See Note 4 of the Notes to Financial Statements for details.

 

During the six months ended October 31, 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
04/30/19
     Net
Activity
     Shares
Held at
10/31/19
     Value at
10/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class(b)

     10,503,939        (10,503,939           $      $ 95,214      $ (879    $ 1,045  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

As of period end, the entity is no longer held by the Fund.

 

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

     25          12/19/19        $ 3,257        $ 19,299  

Long U.S. Treasury Bond

     90          12/19/19          14,524          131,522  

5-Year U.S. Treasury Note

     13          12/31/19          1,550          7,297  
                 

 

 

 
                  $ 158,118  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 158,118      $      $ 158,118  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statements 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).

 

 

 

SCHEDULES OF INVESTMENTS      71  


Schedule of Investments  (unaudited) (continued)

October 31, 2019

   BlackRock MuniVest Fund II, Inc. (MVT)

 

For the six months ended October 31, 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

   $      $      $      $      $ (2,419,675    $      $ (2,419,675
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 277,841      $      $ 277,841  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 22,811,672  

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)

   $        $ 503,520,818        $        $ 503,520,818  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 158,118        $        $             —        $ 158,118  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

   $        $ (45,150,516      $        $ (45,150,516

VMTP Shares at Liquidation Value

              (140,000,000                 (140,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $                 —        $ (185,150,516      $                 —        $ (185,150,516
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

72    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Assets and Liabilities  (unaudited)

October 31, 2019

 

     MUA      MEN      MHD      MUH  

ASSETS

 

Investments at value — unaffiliated(a)

  $ 583,789,166      $ 589,408,657      $ 367,216,208      $ 287,859,575  

Investments at value — affiliated(b)

    1,305,841        5,712,056        129,980        383,582  

Cash

                          

Cash pledged for futures contracts

    139,950        282,900        139,550        128,200  

Receivables:

 

Investments sold

    215,217        1,977,879        14,493        1,119,189  

Dividends — affiliated

    685        4,402        4,787        312  

Interest — unaffiliated

    9,435,664        6,851,279        5,082,276        3,764,605  

Prepaid expenses

    2,613        66,035        18,057        18,022  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

    594,889,136        604,303,208        372,605,351        293,273,485  
 

 

 

    

 

 

    

 

 

    

 

 

 

ACCRUED LIABILITIES

 

Bank overdraft

                         431,025  

Payables:

 

Investments purchased

    1,675,000        5,098,714                

Income dividend distributions — Common Shares

    1,893,948        1,157,578        901,611        640,500  

Interest expense and fees

    396,178        385,874        202,726        231,502  

Investment advisory fees

    275,358        252,432        172,799        135,428  

Directors’ and Officer’s fees

    5,029        3,364        2,357        1,757  

Other accrued expenses

    158,123        124,083        112,841        99,153  

Variation margin on futures contracts

    90,780        184,538        90,001        82,890  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total accrued liabilities

    4,494,416        7,206,583        1,482,335        1,622,255  
 

 

 

    

 

 

    

 

 

    

 

 

 

OTHER LIABILITIES

 

TOB Trust Certificates

    71,659,281        94,889,804        47,050,972        58,118,713  

VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)

           142,332,149                

VMTP Shares, at liquidation value of $100,000 per share(c)(d)

                  83,700,000        55,000,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total other liabilities

    71,659,281        237,221,953        130,750,972        113,118,713  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

    76,153,697        244,428,536        132,233,307        114,740,968  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 518,735,439      $ 359,874,672      $ 240,372,044      $ 178,532,517  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

 

Paid-in capital(e)(f)(g)

  $ 479,606,333      $ 311,656,850      $ 211,785,069      $ 155,975,320  

Accumulated earnings

    39,129,106        48,217,822        28,586,975        22,557,197  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 518,735,439      $ 359,874,672      $ 240,372,044      $ 178,532,517  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, offering and redemption price per share

  $ 14.38      $ 12.12      $ 16.93      $ 15.75  
 

 

 

    

 

 

    

 

 

    

 

 

 

(a) Investments at cost — unaffiliated

  $ 546,748,845      $ 537,022,990      $ 336,154,287      $ 264,573,758  

(b) Investments at cost — affiliated

  $ 1,305,841      $ 5,712,044      $ 129,967      $ 383,582  

(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

    36,075,208        29,681,476        14,198,606        11,336,282  

(g) Common Shares authorized

    200,000,000        199,991,095        199,994,163        199,995,970  

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      73  


 

Statements of Assets and Liabilities  (unaudited) (continued)

October 31, 2019

 

     MUS      MUI      MVT  

ASSETS

 

Investments at value — unaffiliated(a)

  $ 295,482,297      $ 974,684,965      $ 503,520,818  

Investments at value — affiliated(b)

    59,849                

Cash

    106,374                

Cash pledged for futures contracts

    114,150        171,900        200,050  

Receivables:

 

Investments sold

           1,571,000        1,430,000  

Dividends — affiliated

    385        192        6,031  

Interest — unaffiliated

    3,988,946        13,284,529        7,141,229  

Prepaid expenses

    18,031        19,197        18,119  
 

 

 

    

 

 

    

 

 

 

Total assets

    299,770,032        989,731,783        512,316,247  
 

 

 

    

 

 

    

 

 

 

ACCRUED LIABILITIES

 

Bank overdraft

           185,660        423,346  

Payables:

 

Investments purchased

    3,828,919        651,905         

Income dividend distributions — Common Shares

    579,313        1,704,184        1,184,363  

Interest expense and fees

    128,692        321,200        186,776  

Investment advisory fees

    129,674        459,662        215,849  

Directors’ and Officer’s fees

    1,778        347,076        3,136  

Other accrued expenses

    98,885        234,194        135,866  

Variation margin on futures contracts

    75,866        120,601        128,827  
 

 

 

    

 

 

    

 

 

 

Total accrued liabilities

    4,843,127        4,024,482        2,278,163  
 

 

 

    

 

 

    

 

 

 

OTHER LIABILITIES

 

TOB Trust Certificates

    27,542,144        92,611,847        45,150,516  

VMTP Shares, at liquidation value of $100,000 per share(c)(d)

    87,000,000        287,100,000        140,000,000  
 

 

 

    

 

 

    

 

 

 

Total other liabilities

    114,542,144        379,711,847        185,150,516  
 

 

 

    

 

 

    

 

 

 

Total liabilities

    119,385,271        383,736,329        187,428,679  
 

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 180,384,761      $ 605,995,454      $ 324,887,568  
 

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

 

Paid-in capital(e)(f)(g)

  $ 168,134,858      $ 543,452,920      $ 289,962,085  

Accumulated earnings

    12,249,903        62,542,534        34,925,483  
 

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 180,384,761      $ 605,995,454      $ 324,887,568  
 

 

 

    

 

 

    

 

 

 

Net asset value, offering and redemption price per share

  $ 13.86      $ 15.82      $ 15.22  
 

 

 

    

 

 

    

 

 

 

(a) Investments at cost — unaffiliated

  $ 275,027,490      $ 911,376,616      $ 465,916,334  

(b) Investments at cost — affiliated

  $ 59,849      $      $  

(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        21,339,875  

(g) Common Shares authorized

    199,993,770        199,984,329        199,991,600  

See notes to financial statements.

 

 

74    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Operations  (unaudited)

Six Months Ended October 31, 2019

 

     MUA     MEN     MHD     MUH  

INVESTMENT INCOME

 

Interest — unaffiliated

  $ 14,221,973     $ 11,654,477     $ 7,947,798     $ 6,130,586  

Dividends — affiliated

    6,751       22,161       69,292       3,815  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    14,228,724       11,676,638       8,017,090       6,134,401  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory

    1,627,622       1,482,965       1,032,308       792,595  

Professional

    48,452       58,653       42,717       36,963  

Accounting services

    47,145       47,319       33,293       27,848  

Transfer agent

    27,106       19,140       13,429       11,338  

Directors and Officer

    19,468       13,684       9,409       7,174  

Registration

    6,708       5,516       4,534       4,536  

Printing

    6,128       4,251       4,181       3,918  

Custodian

    4,729       5,206       3,434       3,714  

Rating agency

          23,235       23,226       23,221  

Miscellaneous

    20,774       14,324       10,337       10,660  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    1,808,132       1,674,293       1,176,868       921,967  

Interest expense, fees and amortization of offering costs(a)

    752,655       2,553,595       1,555,397       1,235,655  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    2,560,787       4,227,888       2,732,265       2,157,622  

Less fees waived and/or reimbursed by the Manager

    (530     (974     (4,908     (271
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

    2,560,257       4,226,914       2,727,357       2,157,351  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    11,668,467       7,449,724       5,289,733       3,977,050  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

       

Investments — unaffiliated

    2,535,812       500,327       301,503       276,369  

Investments — affiliated

    438       656       (861     170  

Futures contracts

    (1,890,370     (2,932,765     (1,660,447     (1,391,766
 

 

 

   

 

 

   

 

 

   

 

 

 
    645,880       (2,431,782     (1,359,805     (1,115,227
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated

    7,420,879       12,660,333       6,625,052       5,892,297  

Investments — affiliated

          12       698        

Futures contracts

    227,816       244,255       184,918       107,201  
 

 

 

   

 

 

   

 

 

   

 

 

 
    7,648,695       12,904,600       6,810,668       5,999,498  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    8,294,575       10,472,818       5,450,863       4,884,271  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $ 19,963,042     $ 17,922,542     $ 10,740,596     $ 8,861,321  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Related to TOB Trusts, VRDP Shares and/or VMTP Shares.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      75  


 

Statements of Operations  (unaudited) (continued)

Six Months Ended October 31, 2019

 

     MUS     MUI     MVT  

INVESTMENT INCOME

 

Interest — unaffiliated

  $ 5,701,474     $ 18,013,889     $ 10,802,190  

Dividends — affiliated

    25,641       9,275       95,214  
 

 

 

   

 

 

   

 

 

 

Total investment income

    5,727,115       18,023,164       10,897,404  
 

 

 

   

 

 

   

 

 

 

EXPENSES

 

Investment advisory

    813,077       2,722,872       1,283,214  

Professional

    37,834       63,874       46,155  

Accounting services

    28,345       66,904       43,363  

Transfer agent

    11,549       22,666       15,882  

Directors and Officer

    7,232       36,643       12,463  

Registration

    4,544       7,134       4,513  

Printing

    3,835       5,200       4,446  

Custodian

    2,245       7,903       3,631  

Rating agency

    23,226       23,260       23,236  

Miscellaneous

    9,506       34,468       12,262  
 

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    941,393       2,990,924       1,449,165  

Interest expense, fees and amortization of offering costs(a)

    1,357,101       4,530,775       2,220,220  
 

 

 

   

 

 

   

 

 

 

Total expenses

    2,298,494       7,521,699       3,669,385  

Less fees waived and/or reimbursed by the Manager

    (49,029     (678     (6,689
 

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

    2,249,465       7,521,021       3,662,696  
 

 

 

   

 

 

   

 

 

 

Net investment income

    3,477,650       10,502,143       7,234,708  
 

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

     

Investments — unaffiliated

    443,345       1,571,327       328,266  

Investments — affiliated

    663       506       (879

Futures contracts

    (1,422,241     (2,523,638     (2,419,675
 

 

 

   

 

 

   

 

 

 
    (978,233     (951,805     (2,092,288
 

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

     

Investments — unaffiliated

    5,352,714       16,481,901       9,330,752  

Investments — affiliated

          343       1,045  

Futures contracts

    98,215       301,292       277,841  
 

 

 

   

 

 

   

 

 

 
    5,450,929       16,783,536       9,609,638  
 

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    4,472,696       15,831,731       7,517,350  
 

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $ 7,950,346     $ 26,333,874     $ 14,752,058  
 

 

 

   

 

 

   

 

 

 

 

(a) 

Related to TOB Trusts, VRDP Shares and/or VMTP Shares.

See notes to financial statements.

 

 

76    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Changes in Net Assets

 

    MUA            MEN  
     Six Months Ended
10/31/19
(unaudited)
    Year Ended
04/30/19
            Six Months Ended
10/31/19
(unaudited)
    Year Ended
04/30/19
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

          

OPERATIONS

 

      

Net investment income

  $ 11,668,467     $ 24,002,582        $ 7,449,724     $ 15,890,070  

Net realized gain (loss)

    645,880       3,236,828          (2,431,782     (1,651,220

Net change in unrealized appreciation (depreciation)

    7,648,695       1,300,114          12,904,600       11,680,425  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    19,963,042       28,539,524          17,922,542       25,919,275  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)

 

      

Decrease in net assets resulting from distributions to Common Shareholders

    (11,502,734     (23,709,465        (7,242,280     (17,010,899
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

 

      

Reinvestment of common distributions

    630,506       344,118                 
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

 

      

Total increase in net assets applicable to Common Shareholders

    9,090,814       5,174,177          10,680,262       8,908,376  

Beginning of period

    509,644,625       504,470,448          349,194,410       340,286,034  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 518,735,439     $ 509,644,625        $ 359,874,672     $ 349,194,410  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      77  


 

Statements of Changes in Net Assets  (continued)

 

    MHD            MUH  
     Six Months Ended
10/31/19
(unaudited)
    Year Ended
04/30/19
            Six Months Ended
10/31/19
(unaudited)
    Year Ended
04/30/19
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

 

      

OPERATIONS

 

      

Net investment income

  $ 5,289,733     $ 11,524,910        $ 3,977,050     $ 8,585,611  

Net realized gain (loss)

    (1,359,805     (431,757        (1,115,227     32,922  

Net change in unrealized appreciation (depreciation)

    6,810,668       3,512,439          5,999,498       2,777,864  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    10,740,596       14,605,592          8,861,321       11,396,397  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)

 

      

Decrease in net assets resulting from distributions to Common Shareholders

    (5,522,046 )(b)      (12,498,142        (3,956,362     (9,114,553
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

 

      

Reinvestment of common distributions

    124,684                       
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

 

      

Total increase in net assets applicable to Common Shareholders

    5,343,234       2,107,450          4,904,959       2,281,844  

Beginning of period

    235,028,810       232,921,360          173,627,558       171,345,714  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 240,372,044     $ 235,028,810        $ 178,532,517     $ 173,627,558  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(b) 

A portion of the distributions may be deemed a return of capital or net realized gain at fiscal year end.

See notes to financial statements.

 

 

78    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Changes in Net Assets  (continued)

 

    MUS            MUI  
     Six Months Ended
10/31/19
(unaudited)
    Year Ended
04/30/19
            Six Months Ended
10/31/19
(unaudited)
    Year Ended
04/30/19
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

          

OPERATIONS

 

      

Net investment income

  $ 3,477,650     $ 7,636,299        $ 10,502,143     $ 21,439,587  

Net realized loss

    (978,233     (587,442        (951,805     (1,254,891

Net change in unrealized appreciation (depreciation)

    5,450,929       3,114,599          16,783,536       19,684,274  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

    7,950,346       10,163,456          26,333,874       39,868,970  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)

 

      

Decrease in net assets resulting from distributions to Common Shareholders

    (3,475,880     (8,071,331        (10,225,103     (21,750,977
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

 

      

Total increase in net assets applicable to Common Shareholders

    4,474,466       2,092,125          16,108,771       18,117,993  

Beginning of period

    175,910,295       173,818,170          589,886,683       571,768,690  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 180,384,761     $ 175,910,295        $ 605,995,454     $ 589,886,683  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      79  


Statements of Changes in Net Assets  (continued)

 

    MVT  
     Six Months Ended
10/31/19
(unaudited)
    Year Ended
04/30/19
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

 

OPERATIONS

 

Net investment income

  $ 7,234,708     $ 15,853,019  

Net realized gain (loss)

    (2,092,288     653,550  

Net change in unrealized appreciation (depreciation)

    9,609,638       3,413,824  
 

 

 

   

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    14,752,058       19,920,393  
 

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)

 

Decrease in net assets resulting from distributions to Common Shareholders

    (7,274,653     (17,281,902
 

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

 

Reinvestment of common distributions

    235,604       274,917  
 

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

 

Total increase in net assets applicable to Common Shareholders

    7,713,009       2,913,408  

Beginning of period

    317,174,559       314,261,151  
 

 

 

   

 

 

 

End of period

  $ 324,887,568     $ 317,174,559  
 

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

80    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Cash Flows  (unaudited)

Six Months Ended October 31, 2019

 

     MUA     MEN     MHD     MUH  

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES

       

Net increase in net assets resulting from operations

  $ 19,963,042     $ 17,922,542     $ 10,740,596     $ 8,861,321  

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 and principal paydowns

    49,603,262       70,738,104       31,017,346       27,339,374  

Purchases of long-term investments

    (48,623,625     (67,189,945     (31,030,066     (31,041,769

Net proceeds from sales (purchases) of short-term securities

    (537,939     (5,130,880     6,751,045       (329,462

Amortization of premium and accretion of discount on investments and other fees

    31,900       17,013       122,110       3,903  

Net realized gain on investments

    (2,536,250     (500,983     (300,642     (276,539

Net unrealized appreciation on investments

    (7,420,879     (12,660,345     (6,625,750     (5,892,297

(Increase) Decrease in Assets:

       

Receivables:

       

Dividends — affiliated

    680       (2,959     4,859       1,009  

Interest — unaffiliated

    199,470       214,836       212,994       8,586  

Prepaid expenses

    10,131       5,043       3,335       2,906  

Increase (Decrease) in Liabilities:

       

Payables:

       

Investment advisory fees

    13,226       14,736       5,754       8,876  

Interest expense and fees

    (45,860     (67,631     (50,460     (22,151

Directors’ and Officer’s fees

    833       503       341       250  

Variation margin on futures contracts

    20,311       61,146       31,274       29,202  

Other accrued expenses

    (40,698     (71,463     (39,830     (35,457
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) operating activities

    10,637,604       3,349,717       10,842,906       (1,342,248
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

       

Cash dividends paid to Common Shareholders

    (10,942,042     (7,390,687     (5,453,658     (4,013,043

Repayments of Loan for TOB Trust Certificates

          (83,699            

Repayments of TOB Trust Certificates

          (11,192,807     (5,622,993     (4,033,616

Proceeds from TOB Trust Certificates

          14,733,983             8,743,828  

Proceeds from Loan for TOB Trust Certificates

          83,699              

Increase in bank overdraft

                      431,025  

Amortization of deferred offering costs

          5,028              
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) financing activities

    (10,942,042     (3,844,483     (11,076,651     1,128,194  
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH

       

Net decrease in restricted and unrestricted cash

    (304,438     (494,766     (233,745     (214,054

Restricted and unrestricted cash at beginning of period

    444,388       777,666       373,295       342,254  
 

 

 

   

 

 

   

 

 

   

 

 

 

Restricted and unrestricted cash at end of period

  $ 139,950     $ 282,900     $ 139,550     $ 128,200  
 

 

 

   

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

       

Cash paid during the period for interest expense

  $ 798,515     $ 2,616,198     $ 1,605,857     $ 1,257,806  
 

 

 

   

 

 

   

 

 

   

 

 

 

NON-CASH FINANCING ACTIVITIES

 

Capital shares issued in reinvestment of distributions paid to Common Shareholders

  $ 630,506     $     $ 124,684     $  
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE
STATEMENTS OF ASSETS AND LIABILITIES

 

Cash

  $     $     $     $  

Cash pledged:

       

Futures contracts

    139,950       282,900       139,550       128,200  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 139,950     $ 282,900     $ 139,550     $ 128,200  
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD 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  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      81  


Statements of Cash Flows  (unaudited) (continued)

Six Months Ended October 31, 2019

 

     MUS     MUI     MVT  

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES

     

Net increase in net assets resulting from operations

  $ 7,950,346     $ 26,333,874     $ 14,752,058  

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 and principal paydowns

    37,491,122       103,913,446       34,261,532  

Purchases of long-term investments

    (43,234,593     (108,799,208     (41,432,604

Net proceeds from sales (purchases) of short-term securities

    2,396,043       3,436,881       10,505,156  

Amortization of premium and accretion of discount on investments and other fees

    834,210       3,382,519       537,355  

Net realized gain on investments

    (444,008     (1,571,833     (327,387

Net unrealized appreciation on investments

    (5,352,714     (16,482,244     (9,331,797
(Increase) Decrease in Assets:                  

Receivables:

     

Dividends — affiliated

    3,082       9,638       8,117  

Interest — unaffiliated

    103,742       139,393       240,679  

Prepaid expenses

    2,932       8,307       3,856  
Increase (Decrease) in Liabilities:                  

Payables:

     

Investment advisory fees

    8,180       22,516       9,568  

Interest expense and fees

    32,537       (51,955     (40,435

Directors’ and Officer’s fees

    240       21,094       479  

Variation margin on futures contracts

    30,022       3,369       42,701  

Other accrued expenses

    (37,260     (56,154     (43,613
 

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) operating activities

    (216,119     10,309,643       9,185,665  
 

 

 

   

 

 

   

 

 

 

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

     

Cash dividends paid to Common Shareholders

    (3,475,880     (10,225,103     (7,123,483

Repayments of Loan for TOB Trust Certificates

                 

Repayments of TOB Trust Certificates

    (3,168,547     (808,904     (2,831,497

Proceeds from TOB Trust Certificates

    6,793,071              

Proceeds from Loan for TOB Trust Certificates

                 

Increase in bank overdraft

          185,660       423,346  

Amortization of deferred offering costs

                 
 

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) financing activities

    148,644       (10,848,347     (9,531,634
 

 

 

   

 

 

   

 

 

 

CASH

     

Net decrease in restricted and unrestricted cash

    (67,475     (538,704     (345,969

Restricted and unrestricted cash at beginning of period

    287,999       710,604       546,019  
 

 

 

   

 

 

   

 

 

 

Restricted and unrestricted cash at end of period

  $ 220,524     $ 171,900     $ 200,050  
 

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

 

Cash paid during the period for interest expense

  $ 1,324,564     $ 4,582,730     $ 2,260,655  
 

 

 

   

 

 

   

 

 

 

NON-CASH FINANCING ACTIVITIES

     

Capital shares issued in reinvestment of distributions paid to Common Shareholders

  $     $     $ 235,604  
 

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES

     

Cash

  $ 106,374     $     $  

Cash pledged:

 

Futures contracts

    114,150       171,900       200,050  
 

 

 

   

 

 

   

 

 

 
  $ 220,524     $ 171,900     $ 200,050  
 

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD 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  
 

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

82    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights

(For a share outstanding throughout each period)

 

    MUA  
    Six Months Ended
10/31/19
(unaudited)
     

 

    Year Ended April 30,  
    2019      2018      2017      2016      2015  
               

Net asset value, beginning of period

  $ 14.14       $ 14.01      $ 14.07      $ 14.45      $ 14.12      $ 13.56  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.32         0.67        0.68        0.70        0.72        0.73  

Net realized and unrealized gain (loss)

    0.24         0.12        (0.06      (0.38      0.35        0.59  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase from investment operations

    0.56         0.79        0.62        0.32        1.07        1.32  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.32       (0.66      (0.68      (0.70      (0.74      (0.76
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 14.38       $ 14.14      $ 14.01      $ 14.07      $ 14.45      $ 14.12  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 15.49       $ 14.98      $ 13.21      $ 14.82      $ 14.74      $ 14.22  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

 

               

Based on net asset value

    3.91 %(d)        5.97      4.47      2.23      7.90      10.11
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    5.65 %(d)        19.07      (6.48 )%       5.56      9.30      17.02
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    0.99 %(e)        1.01      0.93      0.87      0.81      0.82
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    0.99 %(e)        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(f)

    0.70 %(e)        0.70      0.69      0.69      0.70      0.71
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.49 %(e)        4.77      4.83      4.93      5.09      5.24
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets, end of period (000)

  $ 518,735       $ 509,645      $ 504,470      $ 505,306      $ 517,697      $ 505,341  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 71,659       $ 71,659      $ 71,925      $ 67,507      $ 66,087      $ 61,066  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    8       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) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      83  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MEN  
    Six Months Ended
10/31/19
(unaudited)
     

 

    Year Ended April 30,  
    2019      2018      2017      2016      2015  
               

Net asset value, beginning of period

  $ 11.76       $ 11.46      $ 11.77      $ 12.52      $ 12.27      $ 11.94  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.25         0.54        0.59        0.65        0.70        0.71  

Net realized and unrealized gain (loss)

    0.35         0.33        (0.26      (0.72      0.28        0.35  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.60         0.87        0.33        (0.07      0.98        1.06  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders(b)

                 

From net investment income

    (0.24       (0.57      (0.64      (0.68      (0.73      (0.73

From net realized gain

            (0.00 )(c)                             
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.24       (0.57      (0.64      (0.68      (0.73      (0.73
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 12.12       $ 11.76      $ 11.46      $ 11.77      $ 12.52      $ 12.27  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 11.16       $ 10.71      $ 10.48      $ 11.69      $ 12.55      $ 11.67  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(d)

 

               

Based on net asset value

    5.32 %(e)        8.43      2.93      (0.51 )%       8.50      9.49
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    6.49 %(e)        7.98      (5.23 )%       (1.42 )%       14.35      10.33
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.35 %(f)        2.52      2.06      1.73      1.44      1.44
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.35 %(f)        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(g)

    0.93 %(f)        0.94      0.92      0.89      0.90      0.91
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.14 %(f)        4.68      4.97      5.29      5.71      5.76
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 359,875       $ 349,194      $ 340,286      $ 349,037      $ 370,342      $ 362,703  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 142,500       $ 142,500      $ 142,500      $ 142,500      $ 142,500      $ 142,500  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $ 352,544       $ 345,049      $ 338,797      $ 344,938      $ 359,889      $ 354,528  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 94,890       $ 91,349      $ 87,395      $ 70,823      $ 67,160      $ 76,094  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    12       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) 

Aggregate total return.

(f) 

Annualized.

(g) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

84    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MHD  
    Six Months Ended
10/31/19
(unaudited)
     

 

    Year Ended April 30,  
    2019      2018      2017      2016      2015  
               

Net asset value, beginning of period

  $ 16.56       $ 16.41      $ 16.85      $ 17.95      $ 17.59      $ 16.85  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.37         0.81        0.88        0.95        1.00        1.03  

Net realized and unrealized gain (loss)

    0.39         0.22        (0.39      (1.07      0.42        0.77  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.76         1.03        0.49        (0.12      1.42        1.80  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders(b)

                 

From net investment income

    (0.39 )(c)        (0.83      (0.92      (0.98      (1.06      (1.06

From net realized gain

            (0.05      (0.01                     
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.39       (0.88      (0.93      (0.98      (1.06      (1.06
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 16.93       $ 16.56      $ 16.41      $ 16.85      $ 17.95      $ 17.59  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 16.26       $ 15.92      $ 14.98      $ 16.65      $ 18.14      $ 17.25  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(d)

 

               

Based on net asset value

    4.65 %(e)        6.84      3.07      (0.67 )%       8.65      11.22
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    4.54 %(e)        12.51      (4.79 )%       (2.87 )%       11.91      14.80
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.26 %(f)        2.47      2.16      1.87      1.53      1.50
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    2.26 %(f)        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(g)

    0.97 %(f)        1.00      1.01      0.99      0.99      0.99
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.38 %(f)        4.98      5.19      5.42      5.75      5.86
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 240,372       $ 235,029      $ 232,921      $ 238,684      $ 253,864      $ 248,646  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 83,700       $ 83,700      $ 83,700      $ 83,700      $ 83,700      $ 83,700  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 387,183       $ 380,799      $ 378,281      $ 385,166      $ 403,302      $ 397,068  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 47,051       $ 52,674      $ 63,166      $ 62,233      $ 60,289      $ 56,784  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    9       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) 

A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year end.

(d) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(e) 

Aggregate total return.

(f) 

Annualized.

(g) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      85  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MUH  
    Six Months Ended
10/31/19
(unaudited)
     

 

    Year Ended April 30,  
    2019      2018      2017      2016      2015  
               

Net asset value, beginning of period

  $ 15.32       $ 15.11      $ 15.52      $ 16.51      $ 16.21      $ 15.61  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.35         0.76        0.80        0.86        0.91        0.93  

Net realized and unrealized gain (loss)

    0.43         0.25        (0.35      (0.95      0.33        0.64  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.78         1.01        0.45        (0.09      1.24        1.57  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders(b)

                 

From net investment income

    (0.35       (0.75      (0.85      (0.90      (0.94      (0.97

From net realized gain

            (0.05      (0.01                     
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.35       (0.80      (0.86      (0.90      (0.94      (0.97
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 15.75       $ 15.32      $ 15.11      $ 15.52      $ 16.51      $ 16.21  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 14.72       $ 15.05      $ 13.75      $ 15.59      $ 16.23      $ 15.28  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

 

               

Based on net asset value

    5.20 %(d)        7.46      3.09      (0.52 )%       8.25      10.64
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    0.09 %(d)        16.00      (6.61 )%       1.65      12.90      9.71
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.41 %(e)        2.58      2.12      1.83      1.50      1.48
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    2.41 %(e)        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(f)

    1.03 %(e)        1.05      1.02      1.00      1.00      1.00
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.44 %(e)        5.05      5.16      5.37      5.66      5.76
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 178,533       $ 173,628      $ 171,346      $ 175,637      $ 186,553      $ 183,214  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 55,000       $ 55,000      $ 55,000      $ 55,000      $ 55,000      $ 55,000  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 424,605       $ 415,686      $ 411,538      $ 419,340      $ 439,188      $ 433,117  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 58,119       $ 53,409      $ 54,100      $ 47,507      $ 46,103      $ 43,568  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    10       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)

Aggregate total return.

(e)

Annualized.

(f)

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

86    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MUS  
   

Six Months Ended
10/31/19

(unaudited)

     

 

    Year Ended April 30,  
    2019      2018      2017      2016      2015  
               

Net asset value, beginning of period

  $ 13.51       $ 13.35      $ 13.95      $ 14.84      $ 14.57      $ 14.18  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.27         0.59        0.70        0.75        0.80        0.80  

Net realized and unrealized gain (loss)

    0.35         0.19        (0.54      (0.84      0.28        0.40  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.62         0.78        0.16        (0.09      1.08        1.20  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.27       (0.62      (0.76      (0.80      (0.81      (0.81
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 13.86       $ 13.51      $ 13.35      $ 13.95      $ 14.84      $ 14.57  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 12.55       $ 12.01      $ 12.40      $ 13.38      $ 14.31      $ 13.32  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

 

               

Based on net asset value

    4.79 %(d)        6.59      1.33      (0.47 )%       8.24      9.20
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    6.73 %(d)        2.02      (1.88 )%       (1.00 )%       14.09      9.91
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.54 %(e)        2.60      2.30      1.95      1.60      1.59
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.49 %(e)        2.54      2.24      1.91      1.58      1.57
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    0.99 %(e)        0.98      0.99      0.98      0.99      0.99
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.84 %(e)        4.43      5.08      5.22      5.49      5.49
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 180,385       $ 175,910      $ 173,818      $ 181,614      $ 193,110      $ 189,594  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 87,000       $ 87,000      $ 87,000      $ 87,000      $ 87,000      $ 87,000  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 307,339       $ 302,196      $ 299,791      $ 308,751      $ 321,966      $ 317,924  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 27,542       $ 23,918      $ 26,238      $ 29,150      $ 24,429      $ 21,937  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    13       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) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      87  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MUI  
    Six Months Ended
10/31/19
(unaudited)
     

 

    Year Ended April 30,  
    2019      2018      2017      2016      2015  
               

Net asset value, beginning of period

  $ 15.40       $ 14.93      $ 15.17      $ 16.16      $ 15.86      $ 15.64  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.27         0.56        0.59        0.65        0.73        0.77  

Net realized and unrealized gain (loss)

    0.42         0.47        (0.23      (0.83      0.53        0.27  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.69         1.03        0.36        (0.18      1.26        1.04  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders(b)

                 

From net investment income

    (0.27       (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

    (0.27       (0.56      (0.60      (0.81      (0.96      (0.82
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 15.82       $ 15.40      $ 14.93      $ 15.17      $ 16.16      $ 15.86  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 14.19       $ 13.85      $ 13.01      $ 13.96      $ 15.19      $ 14.47  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(d)

 

               

Based on net asset value

    4.67 %(e)        7.68      2.76      (0.69 )%       9.04      7.27
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    4.39 %(e)        11.13      (2.69 )%       (2.77 )%       12.27      5.20
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.47 %(f)        2.63      2.17      1.90      1.57      1.52
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.47 %(f)        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(g)

    0.98 %(f)        1.01      0.97      0.96      0.94      0.96
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.45 %(f)        3.73      3.87      4.12      4.61      4.82
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 605,995       $ 589,887      $ 571,769      $ 580,945      $ 618,971      $ 607,440  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 287,100       $ 287,100      $ 287,100      $ 287,100      $ 287,100      $ 287,100  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 311,075       $ 305,464      $ 299,153      $ 302,349      $ 315,594      $ 311,578  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 92,612       $ 93,421      $ 79,136      $ 58,337      $ 63,102      $ 52,932  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    11       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) 

Aggregate total return.

(f) 

Annualized.

(g) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

88    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MVT  
    Six Months Ended
10/31/19
(unaudited)
     

 

    Year Ended April 30,  
    2019      2018      2017      2016      2015  
               

Net asset value, beginning of period

  $ 14.87       $ 14.75      $ 15.19      $ 16.17      $ 16.01      $ 15.45  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.34         0.74        0.83        0.91        0.98        0.99  

Net realized and unrealized gain (loss)

    0.35         0.20        (0.41      (0.95      0.18        0.61  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.69         0.94        0.42        (0.04      1.16        1.60  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders(b)

                 

From net investment income

    (0.34       (0.76      (0.86      (0.94      (1.00      (1.04

From net realized gain

            (0.06                            
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.34       (0.82      (0.86      (0.94      (1.00      (1.04
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 15.22       $ 14.87      $ 14.75      $ 15.19      $ 16.17      $ 16.01  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 14.45       $ 14.29      $ 14.05      $ 15.45      $ 17.38      $ 16.26  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

 

               

Based on net asset value

    4.72 %(d)        6.83      2.79      (0.34 )%       7.61      10.65
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    3.46 %(d)        7.78      (3.74 )%       (5.68 )%       13.88      14.52
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.25 %(e)        2.45      2.11      1.88      1.52      1.50
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.25 %(e)        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(f)

    0.88 %(e)        0.91      0.91      0.92      0.92      0.92
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.44 %(e)        5.09      5.44      5.78      6.15      6.17
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 324,888       $ 317,175      $ 314,261      $ 321,939      $ 340,753      $ 336,320  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 140,000       $ 140,000      $ 140,000      $ 140,000      $ 140,000      $ 140,000  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 332,063       $ 326,553      $ 324,472      $ 329,956      $ 343,395      $ 340,229  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 45,151       $ 47,982      $ 61,343      $ 60,575      $ 69,195      $ 66,439  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    7       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) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      89  


Notes to Financial Statements  (unaudited)

 

1.

ORGANIZATION

The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to herein collectively as the “Funds”, or individually as a “Fund”:

 

Fund Name   Herein Referred To As    Organized    Diversification
Classification

BlackRock MuniAssets Fund, Inc.

  MUA    Maryland    Diversified

BlackRock MuniEnhanced Fund, Inc.

  MEN    Maryland    Diversified

BlackRock MuniHoldings Fund, Inc.

  MHD    Maryland    Diversified

BlackRock MuniHoldings Fund II, Inc.

  MUH    Maryland    Diversified

BlackRock MuniHoldings Quality Fund, Inc.

  MUS    Maryland    Diversified

BlackRock Muni Intermediate Duration Fund, Inc.

  MUI    Maryland    Diversified

BlackRock MuniVest Fund II, Inc.

  MVT    Maryland    Diversified

The Boards of Directors of the Funds are collectively referred to throughout this report as the “Board of Directors” or the “Board”, and the directors thereof are collectively referred to throughout this report as “Directors”. The Funds determine and make available for publication the net asset values (“NAVs”) of their Common Shares on a daily basis.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of open-end 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. 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 borrowings to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions from net investment income are declared monthly and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Distributions to Preferred Shareholders are accrued and determined as described in Note 10.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by the Board of Directors of the Funds (the “Board”), the directors who are not “interested persons” of the Funds, as defined in the 1940 Act (“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: The Funds have adopted Financial Accounting Standards Board Accounting Standards Update 2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Funds have changed the amortization period for the premium on certain purchased callable debt securities with non-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Funds applied the amendments on a modified retrospective basis beginning with the fiscal period ended October 31, 2019. The adjusted cost basis of securities at April 30, 2019 are as follows:

 

MUA

  $ 545,683,936  

MEN

    538,145,340  

MHD

    342,848,540  

MUH

    261,762,036  

MUS

    269,356,424  

MUI

    911,482,516  

MVT

    470,370,386  

 

 

90    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the net asset value of 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.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Funds’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

   

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

 

   

Investments in open-end U.S. mutual funds are valued at NAV each business day.

 

   

Futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

 

   

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access

 

   

Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

   

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Global Valuation Committee’s 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, When-Issued and 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

 

 

NOTES TO FINANCIAL STATEMENTS      91  


Notes to Financial Statements  (unaudited) (continued)

 

may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a fund may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

Municipal Bonds Transferred to TOB Trusts: Certain funds leverage their assets through the use of “TOB Trust” transactions. The funds transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a fund provide the fund with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a fund has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds ratably in proportion to their participation in the TOB Trust.

TOB Trusts are supported by a liquidity facility provided by a third party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

The TOB Trust may be collapsed without the consent of a fund, upon the occurrence of a termination event as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Funds) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.

While a fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a fund to borrow money for purposes of making investments. The funds’ 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, a fund 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 Expense      Total  

MUA

  $ 548,330      $ 148,959      $ 55,366      $ 752,655  

MEN

    685,434        191,973        61,497        938,904  

MHD

    375,824        105,374        35,689        516,887  

MUH

    402,842        113,096        37,304        553,242  

MUS

    202,547        54,696        20,403        277,646  

MUI

    700,401        213,807        54,364        968,572  

MVT

    351,670        97,446        34,049        483,165  

For the six months ended October 31, 2019, the following table is a summary of each fund’s TOB Trusts:

 

     Underlying
Municipal Bonds
Transferred to
TOB Trusts
     Liability for
TOB Trust
Certificates
     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

  $ 120,605,149      $ 71,659,281        1.14% — 1.32%      $ 71,659,281        2.09

MEN

    164,814,558        94,889,804        1.12% — 1.44%        89,382,672        2.09  

MHD

    80,604,645        47,050,972        1.10% — 1.30%        49,713,554        2.07  

 

 

92    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

     Underlying
Municipal Bonds
Transferred to
TOB Trusts
     Liability for
TOB Trust
Certificates
     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
 

MUH

  $ 99,154,172      $ 58,118,713        1.10% — 1.30%      $ 53,793,730        2.05 %  

MUS

    52,654,448        27,542,144        1.12% — 1.30%        27,133,702        2.04  

MUI

    159,579,260        92,611,847        1.12% — 1.22%        92,906,744        2.07  

MVT

    78,908,868        45,150,516        1.12% — 1.30%        46,466,331        2.07  

 

  (a) 

The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the funds, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the funds, 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, the fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a fund at October 31, 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 October 31, 2019.

 

For the six months ended October 31, 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
 

MEN

  $           $ 455        0.71

 

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, are 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

 

 

NOTES TO FINANCIAL STATEMENTS      93  


Notes to Financial Statements  (unaudited) (continued)

 

For such services, MUI pays the Manager a monthly fee of 0.55% of (i) the average daily value of MUI’s net assets and (ii) the proceeds of any outstanding debt securities and borrowings used for leverage.

For purposes of calculating these fees, “net assets” mean the total assets of the Fund minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is understood that the liquidation preference of any outstanding preferred shares (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Fund’s NAV.

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 six months ended October 31, 2019 the waiver was $47,222.

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 six months ended October 31, 2019, the amounts waived were as follows:

 

     MUA      MEN      MHD      MUH      MUS      MUI      MVT  

Amounts waived

  $ 530      $ 974      $ 4,908      $ 271      $ 1,807      $ 678      $ 6,689  

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, 2020. The agreement can be renewed for annual periods thereafter, and may be terminated on 90 days’ notice, each subject to approval by a majority of the Funds’ Independent Directors. For the six months ended October 31, 2019, there were no fees waived by the Manager pursuant to this arrangement.

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.

 

7.

PURCHASES AND SALES

For the six months ended October 31, 2019, purchases and sales of investments, excluding short-term securities, were as follows:

 

     MUA      MEN      MHD      MUH      MUS      MUI      MVT  

Purchases

  $ 48,364,024      $ 71,690,827      $ 31,030,066      $ 31,041,769      $ 45,327,200      $ 109,451,113      $ 41,432,604  

Sales

    49,035,564        72,715,983        31,021,839        28,448,563        36,810,040        104,309,446        35,171,532  

 

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 October 31, 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’ financial statements.

As of April 30, 2019, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

MUS   MUI  
$7,833,477   $ 1,809,176  

As of October 31, 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

  $ 475,484,756     $ 448,373,351     $ 289,253,631     $ 205,914,168     $ 247,493,231     $ 818,868,800     $ 420,839,953  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross unrealized appreciation

  $ 45,744,085     $ 52,608,711     $ 31,514,809     $ 24,374,484     $ 20,546,211     $ 63,504,772     $ 37,969,260  

Gross unrealized depreciation

    (7,667,142     (723,142     (367,578     (148,594     (2,143     (246,242     (280,793
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net unrealized appreciation

  $ 38,076,943     $ 51,885,569     $ 31,147,231     $ 24,225,890     $ 20,544,068     $ 63,258,530     $ 37,688,467  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

94    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

 

9.

PRINCIPAL RISKS

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Fund’s ability to buy or sell bonds. As a result, a Fund may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Fund needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations.

Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolio’s current earnings rate.

The Funds may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Funds reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Fund.

A Fund structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

Should short-term interest rates rise, the Funds’ investments in the TOB Trusts may adversely affect the Funds’ net investment income and dividends to shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds’ NAVs per share.

The U.S. Securities and Exchange Commission (“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.

Each Fund may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. A Fund may not be able to readily dispose of such investments at prices that approximate those at which the Fund could sell such investments if they were more widely traded and, as a result of such illiquidity, the Fund may have to sell other investments or engage in borrowing transactions if necessary to raise funds to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting a Fund’s net asset value and ability to make dividend distributions. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in below investment grade public debt securities.

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: As of period end, MEN, MHD, MUS and MUI invested a significant portion of their assets in securities in the transportation sector. Changes in economic conditions affecting such sector would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

 

 

NOTES TO FINANCIAL STATEMENTS      95  


Notes to Financial Statements  (unaudited) (continued)

 

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 periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

     MUA      MHD      MVT  

Six Months Ended October 31, 2019

    42,870        7,396        15,552  

Year Ended April 30, 2019

    24,627               18,940  

For the six months ended October 31, 2019 and the year ended April 30, 2019, shares issued and outstanding remained constant for MEN, MUH, MUS and MUI.

On November 15, 2018, the Board authorized the Funds 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 six months ended October 31, 2019, the Funds did not repurchase any shares.

On September 5, 2019, each Fund announced a continuation of its Repurchase Program. Commencing on December 1, 2019, each Fund may repurchase through November 30, 2020, up to 5% of its common shares outstanding as of the close of business on November 30, 2019, subject to certain conditions. There is no assurance that the Funds will purchase shares in any particular amounts.

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 (for purposes of this section, a “VRDP Fund”) 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      $ 142,500,0000        06/01/41  

Redemption Terms: A VRDP Fund is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, a VRDP Fund is required to begin to segregate liquid assets with the Fund’s custodian to fund the redemption. In addition, a VRDP Fund 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 a VRDP Fund. 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 the VRDP Fund 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 the VRDP Fund and the liquidity provider is scheduled to expire on July 2, 2020 unless renewed or terminated in advance.

 

 

96    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

The VRDP Shares are also subject to a purchase agreement in connection with the liquidity feature. In the event a purchase agreement is not renewed or is terminated in advance, and the VRDP Shares do not become subject to a purchase 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 purchase agreement. In the event of such mandatory purchase, a VRDP Fund is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, the VRDP Fund is required to begin to segregate liquid assets with its custodian to fund the redemption. There is no assurance that a VRDP Fund will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Remarketing: A VRDP Fund 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), a VRDP Fund may incur nominal or no remarketing fees.

Ratings: As of period end, the VRDP Shares were assigned the following assigned ratings:

 

    

Moody’s
Long-Term

Rating

    

Fitch
Long-Term

Rating

 

MEN

    Aa1        AAA  

Any short-term ratings on VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s and Fitch. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories.

Special Rate Period: A VRDP Fund 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’s special rate period has commenced on June 21, 2012 and has a current expiration day of July 2, 2020.

Prior to the expiration date, the VRDP Fund 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 the VRDP Fund on the maturity date, (iii) VRDP Shares will not be remarketed or subject to optional or mandatory tender events, (iv) the VRDP Fund 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) the VRDP Fund will pay dividends monthly based on the sum of an agreed upon reference rate and a percentage per annum based on the long-term ratings assigned to the VRDP Shares and (vi) the VRDP Fund will pay nominal or no fees to the liquidity provider and remarketing agent.

If a VRDP Fund 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 six months ended October 31, 2019, the annualized dividend rate for the VRDP Shares was 2.24%.

For the six months ended October 31, 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        Aa2        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. 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

 

 

NOTES TO FINANCIAL STATEMENTS      97  


Notes to Financial Statements  (unaudited) (continued)

 

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 Securities Industry and Financial Markets Association (“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 six months ended October 31, 2019, the average annualized dividend rates for the VMTP Shares were as follows:

 

     MHD      MUH      MUS      MUI      MVT  

Rate

    2.46      2.46      2.46      2.46      2.46

For the six months ended October 31, 2019, VMTP Shares issued and outstanding of each Fund remained constant.

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.

On December 7, 2012, MUI issued VMTP Shares, the proceeds of which were used to redeem all of MUI’s then-outstanding VRDP Shares on December 21, 2012. MUI’s offering costs that were recorded as a deferred charge and amortized over the 30-year life of MUI’s VRDP Shares were accelerated and charged to expense immediately upon redemption of MUI’s VRDP Shares. Costs incurred in connection with the issuance of MUI’s VMTP Shares were recorded as a deferred charge and will be amortized over the life of the VMTP Shares.

Financial Reporting: The VRDP and VMTP Shares are considered debt of the issuer; therefore, the liquidation preference, which approximates fair value of the VRDP and VMTP Shares, is recorded as a liability in the Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP and VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP and VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP and VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes. Dividends and amortization of deferred offering costs on VRDP and VMTP Shares are included in interest expense, fees and amortization of offering costs in the Statements of Operations:

 

    

Dividends

Accrued

     Deferred
Offering
Costs
Amortization
 

MEN

  $ 1,609,663      $ 5,028  

MHD

    1,038,510         

MUH

    682,413         

MUS

    1,079,455         

MUI

    3,562,203         

MVT

    1,737,055         

 

11.

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 (e)  
     Paid  (a)      Declared  (b)                    Declared (c)            Declared (d)            Shares     Series      Declared  

MUA

  $ 0.0525      $ 0.0525          $ 0.000300       $ 0.021287                    $  

MEN

    0.0390        0.0390                            VRDP       W-7        223,823  

MHD

    0.0635        0.0605                            VMTP       W-7        144,799  

MUH

    0.0565        0.0565            0.001690                 VMTP       W-7        95,149  

MUS

    0.0445        0.0445                            VMTP       W-7        150,508  

MUI

    0.0445        0.0445                            VMTP       W-7        496,676  

MVT

    0.0555        0.0555                        0.001286                             VMTP       W-7        242,197  

 

  (a) 

Net investment income dividend paid on December 2, 2019 to Common Shareholders of record on November 15, 2019.

 
  (b)

Net investment income dividend declared on December 6, 2019, payable to Common Shareholders of record on December 16, 2019.

 
  (c) 

Net investment income special dividend declared amounts per share on December 6, 2019, payable to Common Shareholders of record on December 16, 2019.

 
  (d) 

Special long-term capital gain distribution declared amounts per share on December 6, 2019, payable to Common Shareholders of record on December 16, 2019.

 
  (e) 

Dividends declared for period November 1, 2019 to November 30, 2019.

 

 

 

98    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Disclosure of Investment Advisory Agreements

 

The Board of Directors (each, a “Board,” collectively, the “Boards,” and the members of which are referred to as “Board Members”) of BlackRock MuniAssets Fund, Inc. (“MUA”), BlackRock MuniEnhanced Fund, Inc. (“MEN”), BlackRock MuniHoldings Fund, Inc. (“MHD”), BlackRock MuniHoldings Fund II, Inc. (“MUH”), BlackRock MuniHoldings Quality Fund, Inc. (“MUS”), BlackRock Muni Intermediate Duration Fund, Inc. (“MUI”) and BlackRock MuniVest Fund II, Inc. (“MVT,” and together with MUA, MEN, MHD, MUH, MUS and MUI, the “Funds” and each, a “Fund”) met in person on May 1, 2019 (the “May Meeting”) and June 5-6, 2019 (the “June Meeting”) to consider the approval of each Fund’s investment advisory agreement (the “Advisory Agreements” or the “Agreements”) with BlackRock Advisors, LLC (the “Manager” or “BlackRock”), each Fund’s investment advisor.

Activities and Composition of each Board

On the date of the June Meeting, each Board consisted of eleven individuals, nine of whom were not “interested persons” of each Fund as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of each Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Co-Chairs of each Board are Independent Board Members. Each Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member).

The Agreements

Consistent with the requirements of the 1940 Act, each Board considers the continuation of the Agreements on an annual basis. Each Board has four quarterly meetings per year, each typically extending for two days, and additional in-person and telephonic meetings throughout the year, as needed. While each Board also has a fifth one-day meeting to consider specific information surrounding the renewal of the Agreements, each Board’s consideration entails a year-long deliberative process whereby each Board and its committees assess BlackRock’s services to each Fund. In particular, each Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management; accounting, administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of management.

During the year, each Board, acting directly and through its committees, considers information that is relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to each Fund and its shareholders. BlackRock also furnished additional information to each Board in response to specific questions from each Board. This additional information is discussed further below in the section titled “Board Considerations in Approving the Agreements.” Among the matters each Board considered were: (a) investment performance for one-year, three-year, five-year, ten-year, and/or since inception periods, as applicable, against peer funds, applicable benchmarks, and performance metrics, as applicable, as well as senior management’s and portfolio managers’ analyses of the reasons for any over-performance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) leverage management, as applicable; (c) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by each Fund for services; (d) Fund operating expenses and how BlackRock allocates expenses to each Fund; (e) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of each Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (f) BlackRock and each Fund’s adherence to applicable compliance policies and procedures; (g) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services; (h) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (i) BlackRock’s implementation of the proxy voting policies approved by each Board; (j) execution quality of portfolio transactions; (k) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; (l) an analysis of management fees for products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to each Fund; (m) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; (n) periodic updates on BlackRock’s business; and (o) each Fund’s market discount/premium compared to peer funds.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the May Meeting, each Board requested and received materials specifically relating to the Agreements. The Independent Board Members are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to better assist its deliberations. The materials provided in connection with the May Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on Lipper classifications, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”), the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”) and other metrics, as applicable; (b) information on the composition of the Expense Peers and Performance Peers, and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, closed-end funds, and open-end funds, under similar investment mandates, as applicable; (e) review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with each Fund; (g) a summary of aggregate amounts paid by each Fund to BlackRock; and (h) various additional information requested by each Board as appropriate regarding BlackRock’s and each Fund’s operations.

At the May Meeting, each Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the May Meeting, and as a culmination of each Board’s year-long deliberative process, each Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the June Meeting. Topics covered included: (a) the methodology for measuring estimated fund profitability; (b) fund expenses and potential fee waivers; (c) differences in services provided and management fees between closed-end funds and other product channels; and (d) BlackRock’s option overwrite strategy.

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENTS      99  


Disclosure of Investment Advisory Agreements  (continued)

 

At the June Meeting, each Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared with Performance Peers and other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with each Fund; (d) each Fund’s fees and expenses compared to Expense Peers; (e) the sharing of potential economies of scale; (f) fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with each Fund; and (g) other factors deemed relevant by the Board Members.

Each Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. Each Board noted the willingness of BlackRock personnel to engage in open, candid discussions with each Board. Each Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: Each Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of each Fund. Throughout the year, each Board compared Fund performance to the performance of a comparable group of closed-end funds, relevant benchmarks, and performance metrics, as applicable. Each Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. Each Board also reviewed the materials provided by each Fund’s portfolio management team discussing each Fund’s performance and each Fund’s investment objective, strategies and outlook.

Each Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and each Fund’s portfolio management team; BlackRock’s research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. Each Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. Each Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, each Board considered the nature and quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide each Fund with certain administrative, shareholder and other services (in addition to any such services provided to each Fund by third parties) and officers and other personnel as are necessary for the operations of each Fund. In particular, BlackRock and its affiliates provide each Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of each Fund; (iii) oversight of daily accounting and pricing; (iv) responsibility for periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers including, among others, each Fund’s custodian, fund accountant, transfer agent, and auditor; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; (viii) furnishing analytical and other support to assist each Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain closed-end funds; and (ix) performing or managing administrative functions necessary for the operation of each Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, and shareholder call center and other services. Each Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of each Fund and BlackRock: Each Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the May Meeting, each Board was provided with reports independently prepared by Broadridge, which included a comprehensive analysis of each Fund’s performance as of December 31, 2018. The performance information is based on net asset value (NAV), and utilizes Lipper data. Lipper’s methodology calculates a fund’s total return assuming distributions are reinvested on the ex-date at a fund’s ex-date NAV. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, each Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers, a custom peer group of funds as defined by BlackRock (“Customized Peer Group”), and a composite measuring a blend of total return and yield (“Composite”). Each Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of each Fund throughout the year.

In evaluating performance, each Board focused particular attention on funds with less favorable performance records. Each Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and the Performance Peer funds (for example, the investment objective(s) and investment strategies). Further, each Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. Each Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to affect long-term performance disproportionately.

The Board noted that for the one-, three- and five-year periods reported, MUA ranked first out of three funds, first out of three funds, and second out of three funds, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MUA, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed MUA’s underperformance during the applicable periods.

The Board noted that for each of the one-, three- and five-year periods reported, MEN ranked first out of two funds against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MEN, and that BlackRock has explained its rationale for this belief to the Board.

 

 

100    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Disclosure of Investment Advisory Agreements  (continued)

 

The Board noted that for the one-, three- and five-year periods reported, MHD ranked in the first, second and first quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MHD, and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one-, three- and five-year periods reported, MUH ranked in the first, second and first quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MUH, and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for each of the one-, three- and five-year periods reported, MUS ranked first out of two funds against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MUS, and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for each of the one-, three- and five-year periods reported, MUI ranked first out of two funds against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MUI, and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for each of the one-, three- and five-year periods reported, MVT ranked in the first quartile against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MVT, and that BlackRock has explained its rationale for this belief to the Board.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with each Fund: Each Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. Each Board also compared each Fund’s total expense ratio, as well as its actual management fee rate as a percentage of total assets, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, excluding any investment related expenses. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. Each Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

Each Board received and reviewed statements relating to BlackRock’s financial condition. Each Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. Each Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds each Board currently oversees for the year ended December 31, 2018 compared to available aggregate estimated profitability data provided for the prior two years. Each Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. Each Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. Each Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. Each Board thus recognized that calculating and comparing profitability at individual fund levels is difficult.

Each Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. Each Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly-traded asset management firms. Each Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

In addition, each Board considered the estimated cost of the services provided to each Fund by BlackRock, and BlackRock’s and its affiliates’ estimated profits relating to the management of each Fund and the other funds advised by BlackRock and its affiliates. As part of its analysis, each Board reviewed BlackRock’s methodology in allocating its costs of managing the Funds, to each Fund. Each Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by each Board. Each Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing each Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that MUA’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Expense Peers.

The Board noted that MEN’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Expense Peers.

The Board noted that MHD’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Expense Peers.

The Board noted that MUH’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Expense Peers.

The Board noted that MUS’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Expense Peers.

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENTS      101  


Disclosure of Investment Advisory Agreements  (continued)

 

The Board noted that MUI’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio ranked in the third and fourth quartiles, respectively, relative to the Expense Peers.

The Board noted that MVT’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Expense Peers.

D. Economies of Scale: Each Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Fund increase. Each Board also considered the extent to which each Fund benefits from such economies in a variety of ways, and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable each Fund to more fully participate in these economies of scale. Each Board considered each Fund’s asset levels and whether the current fee was appropriate.

Based on each Board’s review and consideration of the issue, each Board concluded that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering. They are typically priced at scale at a fund’s inception.

E. Other Factors Deemed Relevant by the Board Members: Each Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with each Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to each Fund, including for administrative, securities lending and cash management services. Each Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. Each Board also noted that, subject to applicable law, BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, each Board also received information regarding BlackRock’s brokerage and soft dollar practices. Each Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

Each Board noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their Fund shares in the secondary market if they believe that each Fund’s fees and expenses are too high or if they are dissatisfied with the performance of each Fund.

Each Board also considered the various notable initiatives and projects BlackRock performed in connection with its closed-end fund product line. These initiatives included developing equity shelf programs; efforts to eliminate product overlap with fund mergers; ongoing services to manage leverage that has become increasingly complex; periodic evaluation of share repurchases and other support initiatives for certain BlackRock funds; and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted BlackRock’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. BlackRock’s support services included, among other things: sponsoring and participating in conferences; communicating with closed-end fund analysts covering the BlackRock funds throughout the year; providing marketing and product updates for the closed-end funds; and maintaining and enhancing its closed-end fund website.

Conclusion

Each Board, including the Independent Board Members, approved the continuation of the Advisory Agreements between the Manager and each Fund for a one-year term ending June 30, 2020. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, each Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreements, each Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

 

 

102    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Director and Officer Information

 

Richard E. Cavanagh, Co-Chair of the Board and Director

Karen P. Robards, Co-Chair of the Board and Director

Michael J. Castellano, Director

Cynthia L. Egan, Director

Frank J. Fabozzi, Director

Henry Gabbay, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director

Catherine A. Lynch, Director

Robert Fairbairn, Director

John M. Perlowski, Director, President and Chief Executive Officer

Jonathan Diorio, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

Janey Ahn, Secretary

 

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

Wells Fargo Securities, LLC(a)

Charlotte, NC 28202

 

VRDP Liquidity Provider

Wells Fargo Bank, N.A.(a)

New York, NY 10152

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.

 

 

DIRECTOR AND OFFICER INFORMATION      103  


Additional Information

 

Proxy Results

The Annual Meeting of Shareholders was held on July 29, 2019 for shareholders of record on May 30, 2019 to elect director nominees for each Fund. There were no broker non-votes with regard to any of the Funds.

Shareholders elected the Class III Directors as follows:

 

  

 

  Richard E. Cavanagh     Cynthia L. Egan     Robert Fairbairn     Henry Gabbay  
     Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld  

MUA

    33,502,782       1,228,633       33,799,270       932,145       33,810,053       921,362       33,705,232       1,026,183  

For the Fund listed above, Directors whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are Michael J. Castellano, R. Glenn Hubbard, Catherine A. Lynch, John M. Perlowski, Karen P. Robards, Frank J. Fabozzi and W. Carl Kester.

Shareholders elected the Directors as follows:

 

  

 

  Michael J. Castellano     Richard E. Cavanagh     Cynthia L. Egan  
  Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld  

MEN

    27,426,148       1,122,756       27,503,660       1,045,244       27,581,567       967,337  

MHD

    13,460,849       360,470       13,330,627       490,692       13,453,760       367,559  

MUH

    10,648,647       366,887       10,568,197       447,337       10,666,518       349,016  

MUS

    11,235,233       1,376,412       11,303,461       1,308,184       11,453,958       1,157,687  

MUI

    29,887,801       6,702,714       34,786,519       1,803,996       35,474,815       1,115,700  

MVT

    20,220,629       543,046       20,251,229       512,446       20,243,204       520,471  
           
  

 

  Robert Fairbairn     Henry Gabbay     R. Glenn Hubbard  
  Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld  

MEN

    27,642,450       906,454       27,516,292       1,032,612       27,493,906       1,054,998  

MHD

    13,462,968       358,351       13,460,849       360,470       13,334,759       486,560  

MUH

    10,689,554       325,980       10,652,244       363,290       10,592,336       423,198  

MUS

    11,448,225       1,163,420       11,343,575       1,268,070       11,395,369       1,216,276  

MUI

    35,653,504       937,011       35,634,238       956,277       34,779,811       1,810,704  

MVT

    20,294,902       468,773       20,260,339       503,336       20,173,202       590,473  
           
  

 

  Catherine A. Lynch     John M. Perlowski     Karen P. Robards  
  Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld  

MEN

    27,597,533       951,371       27,637,681       911,223       27,564,084       984,820  

MHD

    13,453,710       367,609       13,469,517       351,802       13,451,463       369,856  

MUH

    10,673,902       341,632       10,694,405       321,129       10,664,198       351,336  

MUS

    11,347,136       1,264,509       11,451,654       1,159,991       11,350,058       1,261,587  

MUI

    29,897,369       6,693,146       35,648,355       942,160       29,889,286       6,701,229  

MVT

    20,276,396       487,279       20,296,357       467,318       20,271,113       492,562  
           
  

 

         Frank J. Fabozzi (a)     W. Carl Kester (a)  
                Votes For     Votes Withheld     Votes For     Votes Withheld  

MEN

 

    1,425       0       1,425       0  

MHD

 

    837       0       837       0  

MUH

 

    550       0       550       0  

MUS

 

    870       0       870       0  

MUI

 

    2,871       0       2,871       0  

MVT

 

    1,400       0       1,400       0  

 

  (a) 

Voted on by holders of preferred shares only.

 

 

 

104    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Additional Information  (continued)

 

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

 

October 31, 2019                                                                      
     Total Fiscal Year to Date Cumulative Distributions
by Character
    Percentage of Fiscal Year to Date Cumulative
Distributions by Character
 
     Net
Investment
Income
    Net Realized
Capital Gains
Short Term
    Net Realized
Capital Gains
Long Term
    Return of
Capital
    Total Per
Common
Share
    Net
Investment
Income
    Net Realized
Capital Gains
Short Term
    Net Realized
Capital Gains
Long Term
    Return of
Capital
    Total Per
Common
Share
 

MHD*

  $ 0.376419     $     $     $ 0.012581     $ 0.389000       97     0     0     3     100

MVT

    0.341000                         0.341000       100     0     0     0     100

 

  *

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.” When distributions exceed total return performance, the difference will reduce the Fund’s net asset value per share.

 

Section 19(a) notices for the Funds, as applicable, are available on the BlackRock website at blackrock.com.

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.

Except as described below, 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.

Effective July 31, 2019, each of MEN and MUS may invest up to 20% of their managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase, subject to each Fund’s other investment policies. The adoption of the new policy will have no effect on MEN’s existing investment policy to invest primarily in investment grade municipal bonds and MUS’s existing investment policy to invest at least 80% of its assets in investment grade municipal bonds.

On July 29, 2019, the Board approved the elimination of MUH’s, MUS’s and MUA’s non-fundamental policy limiting investments in illiquid investments to 15% of net assets. As a result, MUH, MUS and MUA may invest without limit in illiquid investments.

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 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.

 

 

ADDITIONAL INFORMATION      105  


Additional Information  (continued)

 

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 as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at 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 blackrock.com; and (3) on the SEC’s website at 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 blackrock.com; or by calling (800) 882-0052; and (2) on the SEC’s website at sec.gov.

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of 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.

 

 

106    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Glossary of Terms Used in this Report

 

Portfolio Abbreviations
AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BAM    Build America Mutual Assurance Co.
BARB    Building Aid Revenue Bonds
CAB    Capital Appreciation Bonds
COP    Certificates of Participation
EDA    Economic Development Authority
EDC    Economic Development Corp.
ERB    Education Revenue Bonds
FHA    Federal Housing Administration
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
GTD    Guaranteed
HFA    Housing Finance Agency
IDA    Industrial Development Authority
IDB    Industrial Development Board
ISD    Independent School District
LRB    Lease Revenue Bonds
M/F    Multi-Family
MRB    Mortgage Revenue Bonds
NPFGC    National Public Finance Guarantee Corp.
PSF    Permanent School Fund
Q-SBLF    Qualified School Bond Loan Fund
RB    Revenue Bonds
S/F    Single-Family
SONYMA    State of New York Mortgage Agency
 

 

 

GLOSSARY OF TERMS USED IN THIS REPORT      107  


Want to know more?

blackrock.com    |    877-275-1255 (1-877-ASK-1BLK)

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.

CEMUNI7-10/19-SAR

 

 

LOGO    LOGO


Item 2 –

Code of Ethics – Not Applicable to this semi-annual report

 

Item 3 –

Audit Committee Financial Expert – Not Applicable to this semi-annual report

 

Item 4 –

Principal Accountant Fees and Services – Not Applicable to this semi-annual report

 

Item 5 –

Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

 

Item 6 –

Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies

 

  (a)

Not Applicable to this semi-annual report

 

  (b)

As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.

 

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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12 –

 Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

 

Item 13 –

 Exhibits attached hereto

(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(a)(4) – Not Applicable

(b) – Certifications – Attached hereto

 

2


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock MuniAssets Fund, Inc.

 

By:       /s/ John M. Perlowski                             
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniAssets Fund, Inc.

Date: January 3, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:       /s/ John M. Perlowski                             
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniAssets Fund, Inc.

Date: January 3, 2020

 

By:       /s/ Neal J. Andrews                                
    Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
    BlackRock MuniAssets Fund, Inc.

Date: January 3, 2020

 

3

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 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: January 3, 2020

/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 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: January 3, 2020

/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 October 31, 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: January 3, 2020
/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 October 31, 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: January 3, 2020
/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.