N-CSR 1 d833629dncsr.htm BLACKROCK MUNI INTERMEDIATE DURATION FUND, INC. BLACKROCK MUNI INTERMEDIATE DURATION FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-21348

Name of Fund: BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Muni

Intermediate Duration 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: 04/30/2020


Item 1 – Report to Stockholders


 

LOGO   APRIL 30, 2020

 

   2020 Annual Report

 

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,

The last 12 months have been a time of sudden change in global financial markets, as a long period of growth and positive returns was interrupted in early 2020 by the emergence and spread of the coronavirus. For much of the reporting period, U.S. equities and bonds both delivered impressive returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus became more apparent throughout February and March 2020, leading countries around the world took economically disruptive countermeasures, causing equity prices to fall sharply. While markets have since recovered some of these losses as countries around the world begin reopening, there is still significant uncertainty surrounding the long-term impact of the pandemic on the global economy.

Returns for most securities were robust for the first three quarters of the reporting period, as investors began to realize that the U.S. economy was maintaining the modest yet steady growth that had characterized this economic cycle. However, once stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off and unemployment claims spiked. With large portions of the global economy on hold, all types of international equities ended the reporting period with negative performance, while in the U.S. only large-capitalization stocks delivered a slightly positive return.

The performance of different types of fixed-income securities diverged substantially due to a reduced investor appetite for risk. Treasuries benefited from the risk-off environment, and posted healthy returns, as the 10-year yield (which is inversely related to bond prices) fell to an all-time low. Investment-grade corporate bonds also delivered a positive return, while high-yield corporates were down due to credit concerns.

The U.S. Federal Reserve (the “Fed”) reduced interest rates three times in 2019, to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also announced a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruption is certain to hurt worldwide economic growth, the global expansion is likely to continue once the impact of the outbreak subsides. Nonetheless, there are promising signs that a strong coordinated monetary and fiscal response is underway, both in the United States and abroad. With measures being taken to contain the virus and provide support to impacted businesses and individuals, we anticipate a sharp increase in economic activity as life returns to normal.

Overall, we favor a neutral stance toward risk, given the uncertainty surrounding the economic impact of coronavirus countermeasures. Among equities, we see an advantage in U.S. stocks compared to other developed markets, given the diversity of the U.S. economy and the impressive scope of monetary and fiscal stimulus. In bonds, the swift action taken by the world’s central banks means there are attractive opportunities in credit, and we expect credit spreads to narrow as markets stabilize. Both U.S. Treasuries and sustainable investments can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of April 30, 2020
     6-month   12-month

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

  (3.16)%   0.86%

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

  (15.47)   (16.39)

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

  (14.21)   (11.34)

Emerging market equities
(MSCI Emerging Markets Index)

  (10.50)   (12.00)

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

  0.85   2.07

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

  10.73   19.78

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

  4.86   10.84

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

  (1.26)   2.21

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

  (6.60)   (4.08)
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  

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

     71  

Statements of Operations

     73  

Statements of Changes in Net Assets

     75  

Statements of Cash Flows

     79  

Financial Highlights

     81  

Notes to Financial Statements

     88  

Report of Independent Registered Public Accounting Firm

     99  

Automatic Dividend Reinvestment Plan

     100  

Director and Officer Information

     101  

Additional Information

     104  

Glossary of Terms Used in this Report

     106  

 

 

          3  


Municipal Market Overview  For the Reporting Period Ended April 30, 2020

 

Municipal Market Conditions

Municipal bonds posted modestly positive total returns amid a bifurcated market narrative in which rallying interest rates and favorable technicals drove strong performance early in the period before sentiment changed as implications of the coronavirus pandemic materialized. During the month of March, municipal bonds experienced volatility that was worse than during the height of the global financial crisis, as performance plummeted -10.87% during a two-week period before rebounding on aggressive valuation-based buying (For comparison, the -11.86% correction in 2008 spanned more than a month.) Performance continued to be hindered in April by the negative fundamental impacts of the prolonged economic shutdown, despite numerous stimulus efforts by the Fed.

 

 
Technical support waned during the period as a streak of 60-consecutive weeks of inflows turned to record outflows. During the 12 months ended April 30, 2020, municipal bond funds experienced net inflows totaling $38 billion, drawn down by nearly $46 billion in outflows during the months of March and April (based on data from the Investment Company Institute). For the same 12-month period, new issuance was elevated from a historical perspective at $417 billion but slowed materially as market liquidity became constrained amid a flight to quality spurred by the pandemic.   S&P Municipal Bond Index
  Total Returns as of April 30, 2020
    6 months: (1.26)%
  12 months: 2.21%
 

A Closer Look at Yields

 

LOGO

From April 30, 2019 to April 30, 2020, yields on AAA-rated 30-year municipal bonds decreased by 27 basis points (“bps”) from 2.55% to 2.28%, while ten-year rates decreased by 40 bps from 1.86% to 1.46% and five-year rates decreased by 54 bps from 1.63% to 1.09% (as measured by Thomson Municipal Market Data). As a result, the municipal yield curve steepened over the 12-month period with the spread between two- and 30-year maturities steepening by 39 bps, on par with the 41 bps of steepening in the comparable U.S. Treasury curve.

During the same time period, tax-exempt municipal bonds significantly underperformed U.S. Treasuries across the yield curve. Relative valuations, which had been broadly stretched since the passage of tax reform, reset to levels not seen since 2008. This has resulted in increased participation from crossover investors in a market that has mainly been driven by retail over the past few years.

Financial Conditions of Municipal Issuers

The coronavirus pandemic is an unprecedented shock to the system impacting nearly every sector in the municipal market. Luckily, most states and municipalities were in excellent fiscal health before the crisis and the federal government has provided an incredible amount of support. Ongoing stability is expected in high-quality states as well as school districts and local governments given that property taxes have proven resilient in past economic downturns. Essential public services such as power, water, and sewer are protected segments. State housing authority bonds, flagship universities, and strong national and regional health systems are well positioned to absorb the impact of the economic shock. However, some segments are facing daunting financial challenges and federal support may be insufficient, requiring issuers to draw down reserves and/or borrow to meet financial obligations. Critical providers (such as safety net hospitals, mass transit and airports) with limited resources will require funding from the states and broader municipalities they serve. We anticipate that a small subset of the market, mainly non-rated stand-alone projects, will experience significant credit deterioration. Assuming the worst case, a prolonged recession would likely mean a spate of defaults, primarily in non-rated credits, and the migration of the municipal market’s overall credit quality from double-A to a still-strong single-A rating. As a result, we advocate careful credit selection and anticipate increased credit dispersion as the market navigates near-term uncertainty.

The opinions expressed are those of BlackRock as of April 30, 2020 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    2020 BLACKROCK 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 each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s 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 a Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Fund 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 each Fund’s obligations under its respective leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence each Fund’s NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Fund’s 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 each Fund’s 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 April 30, 2020    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 Ratings, or securities that are unrated but are deemed by the investment adviser to be of comparable quality at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on New York Stock Exchange (“NYSE”)

  MUA

Initial Offering Date

  June 25, 1993

Yield on Closing Market Price as of April 30, 2020 ($12.48)(a)

  5.05%

Tax Equivalent Yield(b)

  8.53%

Current Monthly Distribution per Common Share(c)

  $0.0525

Current Annualized Distribution per Common Share(c)

  $0.6300

Leverage as of April 30, 2020(d)

  13%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 
  (d) 

Represents TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2020 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUA(a)(b)

    (12.80 )%       (5.03 )% 

Lipper High Yield Municipal Debt Funds(c)

    (7.86      (3.91

 

  (a) 

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

 
  (b) 

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

Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures and stay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain. High-yield municipal bonds lagged the investment-grade space by a considerable margin, as investors gravitated to areas with the lowest credit risk.

Prior to the March downturn, the Fund benefited from its investments in longer-dated securities with maturities of 20 years and above. Holdings in below investment grade and unrated securities also aided performance in this time, as did positions in the tobacco, tax-backed and health care sectors. Once the market turned lower, these same factors detracted from results and were the primary reason for the Fund’s negative return for the full period.

The Fund’s use of U.S. Treasury futures to manage interest rate risk also proved detrimental to the Fund’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the coronavirus pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined amid investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Fund’s use of leverage also weighed on the Fund’s results at a time of falling bond prices.

The Fund was positioned somewhat defensively at the end of April, albeit less so than earlier in the reporting period.

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    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2020 (continued)    BlackRock MuniAssets Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     04/30/20      04/30/19      Change      High      Low  

Market Price

  $ 12.48      $ 14.98        (16.69 )%     $ 16.32      $ 9.63  

Net Asset Value

    12.83        14.14        (9.26      14.81        12.34  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/20     04/30/19  

County/City/Special District/School District

    19     18

Transportation

    17       18  

Utilities

    15       13  

Tobacco

    14       15  

Health

    11       17  

Education

    10       8  

State

    6       3  

Corporate

    5       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,

       

2020

    15

2021

    18  

2022

    7  

2023

    12  

2024

    9  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   04/30/20     04/30/19  

AA/Aa

    20     19

A

    8       10  

BBB/Baa

    15       19  

BB/Ba

    11       8  

B

    7       11  

CC/Ca

    3       3  

N/R(b)

    36       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 April 30, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 2% of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      7  


Fund Summary  as of April 30, 2020    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 April 30, 2020 ($10.17)(a)

  4.60%

Tax Equivalent Yield(b)

  7.77%

Current Monthly Distribution per Common Share(c)

  $0.0390

Current Annualized Distribution per Common Share(c)

  $0.4680

Leverage as of April 30, 2020(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 monthly distribution per Common Share, declared on June 1, 2020, was increased to $0.0430 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.

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2020 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MEN(a)(b)

    (0.88 )%       (1.65 )% 

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

    (3.22      (2.24

 

  (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:

Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures and stay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain.

The Fund’s use of U.S. Treasury futures to manage interest rate risk proved detrimental to the Fund’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the coronavirus pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined amid investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Fund’s use of leverage also weighed on the Fund’s results at a time of falling bond prices.

Positions in lower-rated securities also detracted, as this market segment underperformed by a wide margin at a time of heightened uncertainty. Lower-quality states such as Illinois and New Jersey were especially notable laggards. Both are facing a likely reduction in tax revenues due to the stay-at-home orders and business closures that resulted from the coronavirus pandemic.

Portfolio income contributed to performance. Positions in higher-rated securities and issuers that focus on essential services also helped Fund returns, particularly during the market turmoil in March.

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    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2020 (continued)    BlackRock MuniEnhanced Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     04/30/20      04/30/19      Change      High      Low  

Market Price

  $ 10.17      $ 10.71        (5.04 )%     $ 12.20      $ 7.82  

Net Asset Value

    11.08        11.76        (5.78      12.80        9.97  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/20     04/30/19  

Transportation

    25     24

State

    16       15  

County/City/Special District/School District

    16       15  

Health

    16       16  

Utilities

    9       11  

Education

    7       7  

Housing

    6       6  

Tobacco

    3       2  

Corporate

    2       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 (d)

 

Calendar Year Ended December 31,

       

2020

    1

2021

    10  

2022

    9  

2023

    7  

2024

    10  

 

  (d) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   04/30/20     04/30/19  

AAA/Aaa

    6     6

AA/Aa

    44       46  

A

    29       28  

BBB/Baa

    13       14  

BB/Ba

    1       2  

B

    (b)       

N/R(c)

    7       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) 

Rounds to less than 1%.

 
  (c) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      9  


Fund Summary  as of April 30, 2020    BlackRock MuniHoldings Fund, Inc.

 

Investment Objective

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

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

Fund Information

 

Symbol on NYSE

  MHD

Initial Offering Date

  May 2, 1997

Yield on Closing Market Price as of April 30, 2020 ($13.91)(a)

  5.22%

Tax Equivalent Yield(b)

  8.82%

Current Monthly Distribution per Common Share(c)

  $0.0605

Current Annualized Distribution per Common Share(c)

  $0.7260

Leverage as of April 30, 2020(d)

  39%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 
  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2020 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MHD(a)(b)

    (8.52 )%       (4.02 )% 

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

    (3.22      (2.24

 

  (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:

Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures and stay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain.

Prior to the March downturn, the Fund benefited from its investments in longer-dated securities with maturities of 20 years and above. Holdings in bonds on the lower end of the investment-grade spectrum (A and BBB) also aided performance in this time, as did positions in the tax-backed, transportation and health care sectors. Once the market turned lower, these same factors detracted from results and were the primary reason for the Fund’s negative return for the full period.

The Fund’s use of U.S. Treasury futures to manage interest rate risk also proved detrimental to the Fund’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the coronavirus pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined amid investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Fund’s use of leverage also weighed on the Fund’s results at a time of falling bond prices.

On the positive side, the Fund’s holdings in AAA and AA rated debt performed better in the sell-off compared to other areas of the market.

The investment adviser increased the Fund’s duration, thereby moving away from the more defensive posture it held for the majority of the period. This change reflected the investment adviser’s belief that yields had fallen to low levels that indicated little additional upside potential from rate movements.

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    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2020 (continued)    BlackRock MuniHoldings Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/20      04/30/19      Change      High      Low  

Market Price

   $ 13.91      $ 15.92        (12.63 )%     $ 17.82      $ 11.87  

Net Asset Value

     15.18        16.56        (8.33      17.81        13.86  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/20     04/30/19  

Transportation

    26     25

Utilities

    17       14  

Health

    15       16  

County/City/Special District/School District

    13       13  

State

    10       10  

Tobacco

    7       7  

Education

    7       8  

Corporate

    4       6  

Housing

    1       1  

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2020

    11

2021

    12  

2022

    10  

2023

    6  

2024

    5  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   04/30/20     04/30/19  

AAA/Aaa

    5     4

AA/Aa

    34       39  

A

    26       22  

BBB/Baa

    16       15  

BB/Ba

    6       3  

B/B

    3       5  

N/R(b)

    10       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 April 30, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and less than 2%, respectively, of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      11  


Fund Summary  as of April 30, 2020    BlackRock MuniHoldings Fund II, Inc.

 

Investment Objective

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

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

Fund Information

 

Symbol on NYSE

  MUH

Initial Offering Date

  February 27, 1998

Yield on Closing Market Price as of April 30, 2020 ($13.31)(a)

  5.09%

Tax Equivalent Yield(b)

  8.60%

Current Monthly Distribution per Common Share(c)

  $0.0565

Current Annualized Distribution per Common Share(c)

  $0.6780

Leverage as of April 30, 2020(d)

  39%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

The monthly distribution per Common Share, declared on June 1, 2020, was increased to $0.0585 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.

 
  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2020 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUH(a)(b)

    (7.38 )%       (2.93 )% 

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

    (3.22      (2.24

 

  (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:

Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures and stay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain.

The Fund’s use of U.S. Treasury futures to manage interest rate risk proved detrimental to the Fund’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the coronavirus pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined amid investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Fund’s use of leverage also weighed on the Fund’s results at a time of falling bond prices.

Positions in lower-rated securities also detracted, as this market segment underperformed by a wide margin at a time of heightened uncertainty. Lower-quality states such as Illinois and New Jersey were especially notable laggards. Both are facing a likely reduction in tax revenues due to the stay-at-home orders and business closures that resulted from the coronavirus pandemic.

Portfolio income contributed to performance. Positions in higher-rated securities and issuers that focus on essential services also helped Fund returns, particularly during the market turmoil in March.

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    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2020 (continued)    BlackRock MuniHoldings Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/20      04/30/19      Change      High      Low  

Market Price

   $ 13.31      $ 15.05        (11.56 )%     $ 16.65      $ 9.92  

Net Asset Value

     14.20        15.32        (7.31      16.61        12.89  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/20     04/30/19  

Transportation

    23     22

Health

    17       17  

County/City/Special District/School District

    14       16  

State

    11       11  

Utilities

    11       12  

Housing

    8       7  

Tobacco

    6       6  

Corporate

    6       4  

Education

    4       5  

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,

       

2020

    9

2021

    11  

2022

    7  

2023

    6  

2024

    5  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   04/30/20     04/30/19  

AAA/Aaa

    5     4

AA/Aa

    39       41  

A

    21       22  

BBB/Baa

    15       15  

BB/Ba

    5       2  

B/B

    2       4  

CC

          1  

N/R(b)

    13       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 April 30, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and less than 2%, respectively, of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      13  


Fund Summary  as of April 30, 2020    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 April 30, 2020 ($11.44)(a)

  4.67%

Tax Equivalent Yield(b)

  7.89%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Leverage as of April 30, 2020(d)

  41%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

The monthly distribution per Common Share, declared on June 1, 2020, was increased to $0.0505 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.

 
  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2020 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUS(a)(b)

    (0.59 )%       (1.97 )% 

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

    (3.22      (2.24

 

  (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:

Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures and stay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain.

The Fund’s use of U.S. Treasury futures to manage interest rate risk proved detrimental to the Fund’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the coronavirus pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined as a result of investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Fund’s use of leverage, while augmenting income, also weighed on the Fund’s results at a time of falling bond prices.

Allocations to the health care and education sectors, which were disproportionately hurt by uncertainty surrounding the potential impact of the coronavirus pandemic, detracted. Positions in the tax-backed state sector also detracted as lower-rated issuers such as Illinois, New Jersey and Puerto Rico underperformed.

On the positive side, higher-quality investments performed well late in the period as investors sought relative safety amid volatile market conditions. In this environment, pre-refunded bonds generated the best returns. The transportation and utilities sectors also had a positive impact on Fund performance for the full period.

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    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2020 (continued)    BlackRock MuniHoldings Quality Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     

04/30/20

     04/30/19      Change      High      Low  

Market Price

   $ 11.44      $ 12.01        (4.75 )%     $ 13.29      $ 9.21  

Net Asset Value

     12.69        13.51        (6.07      14.45        11.69  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector  

04/30/20

    04/30/19  

Transportation

    33     34

County/City/Special District/School District

    18       20  

State

    16       13  

Health

    10       8  

Utilities

    10       11  

Education

    8       9  

Tobacco

    2       2  

Housing

    2       2  

Corporate

    1       1  

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2020

    2

2021

    17  

2022

    2  

2023

    18  

2024

    4  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating  

04/30/20

    04/30/19  

AAA/Aaa

    4     3

AA/Aa

    41       48  

A

    34       32  

BBB/Baa

    11       11  

BB//Ba

    1        

N/R(b)

    9       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 April 30, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents 3% and less than 2%, respectively, of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      15  


Fund Summary  as of April 30, 2020    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. The Fund expects to maintain a dollar-weighted average portfolio duration, as calculated by the investment adviser, of three to ten years. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Fund Information

 

Symbol on NYSE

  MUI

Initial Offering Date

  August 1, 2003

Yield on Closing Market Price as of April 30, 2020 ($13.13)(a)

  4.07%

Tax Equivalent Yield(b)

  6.88%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Leverage as of April 30, 2020(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 monthly distribution per Common Share, declared on June 1, 2020, was increased to $0.0525 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.

 
  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2020 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MUI(a)(b)

    (1.56 )%       (1.41 )% 

Lipper Intermediate Municipal Debt Funds(c)

    0.98        (0.59

 

  (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:

Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures and stay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain.

The Fund’s use of U.S. Treasury futures to manage interest rate risk proved detrimental to the Fund’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the coronavirus pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined as a result of investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Fund’s use of leverage, while augmenting income, also weighed on the Fund’s results at a time of falling bond prices.

The portfolio’s allocation to BBB issues and lower-rated securities detracted from Fund performance. Yield spreads on lower-quality issues widened (significantly in some cases) as the market began to price in the uncertainties around the fundamental impact of the coronavirus pandemic.

Positions in the state tax-backed sector further detracted as lower-rated issuers such as Illinois, New Jersey and Puerto Rico underperformed.

Portfolio income contributed to performance. Positions in higher-rated securities (those rated A and above) also helped Fund returns. This segment included more seasoned portfolio positions, highlighted by pre-refunded securities and holdings in the transportation and local tax-backed sectors.

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    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2020 (continued)    BlackRock Muni Intermediate Duration Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/20      04/30/19      Change      High      Low  

Market Price

   $ 13.13      $ 13.85        (5.20 )%     $ 14.93      $ 10.46  

Net Asset Value

     14.62        15.40        (5.06      16.40        13.68  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   04/30/20     04/30/19  

Transportation

    29     30

County/City/Special District/School District

    14       15  

State

    14       12  

Education

    13       12  

Utilities

    11       10  

Health

    10       13  

Tobacco

    5       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 (d)

 

Calendar Year Ended December 31,

       

2020

    5

2021

    15  

2022

    5  

2023

    16  

2024

    12  

 

  (d) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   04/30/20     04/30/19  

AAA/Aaa

    4     5

AA/Aa

    31       33  

A

    36       35  

BBB/Baa

    15       17  

BB/Ba

    5       2  

B

    (b)      2  

N/R(c)

    9       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) 

Rounds to less than 1%.

 
  (c) 

The investment adviser evaluates the credit quality of unrated Investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      17  


Fund Summary  as of April 30, 2020    BlackRock MuniVest Fund II, Inc.

 

Investment Objective

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

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

Fund Information

 

Symbol on NYSE

  MVT

Initial Offering Date

  March 29, 1993

Yield on Closing Market Price as of April 30, 2020 ($12.55)(a)

  5.31%

Tax Equivalent Yield(b)

  8.97%

Current Monthly Distribution per Common Share(c)

  $0.0555

Current Annualized Distribution per Common Share(c)

  $0.6660

Leverage as of April 30, 2020(d)

  40%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 
  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended April 30, 2020 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MVT(a)(b)

    (8.02 )%       (4.21 )% 

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

    (3.22      (2.24

 

  (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:

Municipal bonds performed well for most of the period due to the accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of the coronavirus pandemic led to travel restrictions, business closures and stay-at-home orders. The prospect of a sharp economic downturn led to significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and a lack of market liquidity inhibited efficient pricing. Municipal bonds subsequently recovered in April following aggressive stimulus from the Fed and U.S. Congress, allowing the category to close the period with a narrow gain.

Prior to the March downturn, the Fund benefited from its investments in longer-dated securities with maturities of 20 years and above. Holdings in bonds on the lower end of the investment-grade spectrum (A and BBB) also aided performance in this time, as did positions in the tax-backed, transportation and health care sectors. Once the market turned lower, these same factors detracted from results and were the primary reason for the Fund’s negative return for the full period.

The Fund’s use of U.S. Treasury futures to manage interest rate risk also proved detrimental to the Fund’s performance given the breakdown in correlation between the Treasury and municipal markets arising from the coronavirus pandemic. While municipal bond yields rose due to a substantial increase in yield spreads, Treasury yields declined amid investors’ “flight to quality.” (Prices and yields move in opposite directions.) The Fund’s use of leverage also weighed on the Fund’s results at a time of falling bond prices.

On the positive side, the Fund’s holdings in AAA and AA rated debt performed better in the sell-off compared to other areas of the market.

The investment adviser increased the Fund’s duration, thereby moving away from the more defensive posture it held for the majority of the period. This change reflected the investment adviser’s belief that yields had fallen to low levels that indicated little additional upside potential from rate movements.

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    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of April 30, 2020 (continued)    BlackRock MuniVest Fund II, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

      04/30/20      04/30/19      Change      High      Low  

Market Price

   $ 12.55      $ 14.29        (12.18 )%     $ 15.71      $ 9.69  

Net Asset Value

     13.60        14.87        (8.54      15.98        12.49  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector Allocation   04/30/20     04/30/19  

Transportation

    23     24

Health

    16       18  

Utilities

    16       14  

County/City/Special District/School District

    14       13  

Tobacco

    9       7  

State

    9       9  

Education

    7       8  

Corporate

    5       6  

Housing

    1       1  

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2020

    10

2021

    11  

2022

    9  

2023

    7  

2024

    5  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   04/30/20     04/30/19  

AAA/Aaa

    4     4

AA/Aa

    32       34  

A

    24       25  

BBB/Baa

    18       19  

BB/Ba

    7       3  

B

    2       4  

CC/Ca

    1        

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 April 30, 2020 and April 30, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      19  


Schedule of Investments

April 30, 2020

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 88.4%

   
Alabama — 1.1%  

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

  $ 3,745     $ 4,220,390  

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

   

4.50%, 05/01/32

    380       349,475  

5.25%, 05/01/44

    485       465,217  
   

 

 

 
      5,035,082  
Alaska — 0.6%  

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

   

4.63%, 06/01/23

    180       180,178  

5.00%, 06/01/46

    2,790       2,732,973  
   

 

 

 
      2,913,151  
Arizona — 2.9%  

Arizona IDA, RB(a):

   

Arizona Charter Schools Project, 7.10%, 01/01/55

    1,790       1,517,723  

Christian University Project, Series A, 5.63%, 10/01/49

    290       226,470  

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

    520       479,034  

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

    250       226,030  

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

   

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

    960       899,712  

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

    1,775       1,570,325  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A(a):

   

6.50%, 07/01/34

    570       596,306  

6.75%, 07/01/44

    1,000       1,042,370  

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

   

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

    305       287,112  

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

    1,170       1,024,744  

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

    260       244,751  

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

    320       303,258  

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

    255       231,420  

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

    875       751,354  

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

    1,650       2,036,083  

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

    665       589,755  

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

    1,765       1,594,007  
   

 

 

 
      13,620,454  
Arkansas — 0.5%  

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

    2,815       2,403,869  
   

 

 

 
California — 4.6%  

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

   

5.50%, 08/01/34

    315       281,260  

6.00%, 08/01/44

    665       589,675  

6.13%, 08/01/49

    580       513,787  

California School Finance Authority, RB:

   

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

    1,570       1,648,265  

Value Schools, 6.65%, 07/01/33

    435       456,089  

Value Schools, 6.90%, 07/01/43

    975       1,016,681  

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

   

5.25%, 12/01/38

    580       595,956  

Series A, 5.00%, 12/01/46

    725       709,318  
Security   Par
(000)
    Value  
California (continued)  

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

  $ 1,650     $ 1,650,066  

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

   

0.00%, 08/01/26

    1,250       933,525  

0.00%, 08/01/43

    1,500       368,220  

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

   

6.50%, 05/01/36

    900       940,563  

6.50%, 05/01/42

    2,220       2,315,105  

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

   

5.70%, 06/01/46

    3,600       3,599,964  

5.60%, 06/01/36

    1,285       1,284,987  

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

    2,885       3,039,348  

Golden State Tobacco Securitization Corp., Refunding RB:

   

Series A-1, 5.25%, 06/01/47

    610       610,799  

Series A-2, 5.00%, 06/01/47

    790       770,708  
   

 

 

 
      21,324,316  
Colorado — 1.6%  

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

    910       791,554  

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

    1,240       1,157,156  

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

    575       479,067  

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

    720       681,984  

Copperleaf Metropolitan District No. 2, GO, Subordinate, 5.00%, 12/15/49

    510       462,687  

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

    500       414,640  

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

    1,211       972,070  

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

    760       716,976  

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

    1,500       1,504,560  

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

    410       410,021  
   

 

 

 
      7,590,715  
Connecticut — 0.9%  

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

    1,395       1,214,110  

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

    967       999,637  

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

    1,835       1,897,372  
   

 

 

 
      4,111,119  
Delaware — 1.2%  

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

    1,000       1,011,490  

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

    4,495       4,495,944  
   

 

 

 
      5,507,434  
District of Columbia — 0.3%  

District of Columbia Tobacco Settlement Financing Corp., RB, Asset-Backed, 0.00%, 06/15/46(b)

    7,810       1,314,189  
   

 

 

 
 

 

 

20    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida — 9.7%  

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

  $ 1,380     $ 1,365,565  

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

    1,495       1,338,787  

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

   

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

    515       298,700  

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

    1,105       640,900  

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

    940       779,138  

Silver Creek St. Augustine Project, 5.75%, 01/01/50(c)(d)

    655       641,900  

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

   

5.00%, 10/01/34

    245       233,872  

5.00%, 10/01/49

    1,170       1,009,722  

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

    630       453,747  

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

    915       947,711  

County of Osceola Florida Transportation Revenue, Refunding RB, Series A-2(b):

   

0.00%, 10/01/50

    730       205,524  

0.00%, 10/01/51

    875       235,112  

0.00%, 10/01/52

    875       223,965  

0.00%, 10/01/53

    2,325       566,626  

0.00%, 10/01/54

    875       203,052  

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

    500       522,945  

County of Seminole Industrial Development Authority, Refunding RB, Legacy Pointe at UCF Project:

   

5.50%, 11/15/49

    1,235       909,553  

5.75%, 11/15/54

    985       735,618  

Florida Development Finance Corp., RB:

   

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

    690       695,299  

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

    835       839,267  

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

    3,180       3,120,248  

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

    1,550       1,549,287  

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

    1,115       865,430  

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

    1,715       1,579,807  

Lakewood Ranch Stewardship District, Special Assessment Bonds:

   

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

    395       395,083  

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

    400       423,100  

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

    665       702,154  

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

    565       558,435  

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

    645       672,883  

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

    1,150       1,197,667  

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

    1,485       1,544,014  

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

   

4.00%, 05/01/21

    54       53,929  

4.25%, 05/01/26

    135       136,472  

5.13%, 05/01/46

    820       736,171  
Security   Par
(000)
    Value  
Florida (continued)  

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

  $ 4,550     $ 4,951,173  

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

   

Series A, 5.00%, 05/01/37

    845       819,963  

Series B, 5.00%, 05/01/37

    495       480,333  

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

    3,545       2,836,366  

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

   

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

    305       250,524  

Series 2015-2, 6.61%, 05/01/40

    805       459,832  

Tolomato Community Development District(c)(d):

   

Series 1, 6.61%, 05/01/40(g)

    1,305       976,975  

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       438,544  

5.50%, 05/01/49

    1,105       1,120,105  

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

   

6.75%, 05/01/31

    1,395       1,424,086  

7.00%, 05/01/41

    2,290       2,334,174  

5.50%, 05/01/42

    1,125       1,135,586  

West Villages Improvement District, Special Assessment Bonds:

   

4.75%, 05/01/39

    455       416,284  

5.00%, 05/01/50

    940       825,555  
   

 

 

 
      44,851,199  
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       3,387,243  

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

   

5.00%, 05/15/35

    560       638,042  

5.00%, 05/15/36

    560       635,863  

5.00%, 05/15/37

    615       701,039  

5.00%, 05/15/38

    340       385,002  

5.00%, 05/15/49

    1,130       1,312,099  
   

 

 

 
      7,059,288  
Idaho — 0.1%  

Idaho Housing & Finance Association, RB, Hayden Canyon Charter School Project, 6.95%, 06/15/55(a)

    580       510,800  
   

 

 

 
Illinois — 4.8%  

Chicago Board of Education, GO, Series C:

   

Series H, 5.00%, 12/01/46

    720       622,742  

Project, 5.25%, 12/01/35

    1,655       1,639,393  

Chicago Board of Education, GO, Refunding:

   

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

    1,000       994,220  

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

    2,150       1,881,551  

Series B, 4.00%, 12/01/35

    745       652,642  

5.00%, 12/01/25

    725       739,971  

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

   

Series A, 5.00%, 12/01/42

    1,020       905,536  

5.00%, 12/01/46

    600       540,066  

5.00%, 12/01/46

    1,555       1,344,951  

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

    1,260       1,290,744  

Illinois Finance Authority, Refunding RB:

   

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

    670       670,114  
 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

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

  $ 365     $ 375,238  

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

    860       872,281  

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

   

Bonds, 0.00%, 12/15/52(b)

    1,880       258,594  

Bonds, 0.00%, 12/15/56(b)

    5,005       541,791  

Bonds, 5.00%, 06/15/57

    1,020       908,331  

5.50%, 06/15/53

    2,370       2,304,280  

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

   

4.00%, 06/15/50

    1,570       1,307,355  

Bonds, Series B, 0.00%, 12/15/54(b)

    19,665       2,412,109  

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

    740       688,037  

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

    1,517       1,517,349  
   

 

 

 
      22,467,295  
Indiana — 2.4%  

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

   

6.75%, 01/01/34

    825       863,247  

7.00%, 01/01/44

    2,000       2,095,800  

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

    2,035       2,036,384  

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

   

6.63%, 01/15/34

    290       286,688  

6.75%, 01/15/43

    525       502,572  

6.88%, 01/15/52

    2,450       2,317,920  

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

   

5.00%, 07/01/44

    470       481,012  

5.00%, 07/01/48

    1,555       1,596,052  

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

    1,190       1,056,161  
   

 

 

 
      11,235,836  
Iowa — 1.7%  

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

   

Series B, 5.25%, 12/01/50(e)

    2,085       1,987,964  

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

    150       149,261  

Iowa Tobacco Settlement Authority, Refunding RB:

   

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

    795       795,127  

Series C, 5.38%, 06/01/38

    4,900       4,905,292  
   

 

 

 
      7,837,644  
Kentucky — 0.9%  

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

    4,000       4,114,800  
   

 

 

 
Louisiana — 2.3%  

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

    2,415       1,993,003  

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

    930       799,270  

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

    1,745       1,847,013  

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

    5,570       5,905,481  
   

 

 

 
      10,544,767  
Security   Par
(000)
    Value  
Maine — 0.7%  

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

  $ 2,955     $ 3,026,481  
   

 

 

 
Maryland — 1.7%  

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

    2,825       2,349,807  

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

    3,085       3,102,800  

Maryland Health & Higher Educational Facilities Authority, RB, Legends Charter School Project, 7.00%, 03/01/55(a)

    3,010       2,349,787  
   

 

 

 
      7,802,394  
Michigan — 1.5%  

Advanced Technology Academy, Refunding RB, 5.00%, 11/01/44

    415       343,168  

City of Detroit Michigan, GO:

   

5.00%, 04/01/34

    285       284,202  

5.00%, 04/01/35

    285       283,860  

5.00%, 04/01/36

    200       198,748  

5.00%, 04/01/37

    320       317,424  

5.00%, 04/01/38

    145       143,480  

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

    2,785       2,957,308  

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

    415       425,861  

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

    920       955,558  

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

    1,200       1,208,412  
   

 

 

 
      7,118,021  
Minnesota — 0.4%  

City of Minneapolis Minnesota, RB, Kipp North Star Project, Series A, 5.75%, 07/01/55

    1,480       1,381,121  

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

   

5.75%, 09/01/46

    195       190,525  

6.00%, 09/01/51

    290       288,016  
   

 

 

 
      1,859,662  
Missouri — 0.3%  

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

   

4.38%, 11/15/35

    685       644,455  

4.75%, 11/15/47

    760       687,724  
   

 

 

 
      1,332,179  
New Hampshire — 0.4%  

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

   

Series B, 4.63%, 11/01/42

    1,015       909,937  

Series C, AMT, 4.88%, 11/01/42

    485       438,426  

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

   

5.25%, 07/01/39

    400       329,508  

5.63%, 07/01/46

    270       217,717  
   

 

 

 
      1,895,588  
New Jersey — 4.9%  

Casino Reinvestment Development Authority, Inc., Refunding RB:

   

5.25%, 11/01/39

    1,065       1,024,850  

5.25%, 11/01/44

    770       715,807  
 

 

 

22    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Jersey (continued)  

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

  $ 1,150     $ 1,152,737  

New Jersey EDA, RB:

   

Friends of Vineland Public Charter School Projects, Series A, 5.25%, 11/01/54(a)

    1,675       1,251,192  

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

    2,155       2,191,010  

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

    2,065       2,119,371  

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

    165       167,787  

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

    260       259,485  

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

    2,245       2,177,874  

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

    1,530       1,605,368  

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

    500       439,695  

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

   

Bonds, Series S, 5.25%, 06/15/43

    2,345       2,350,136  

Series AA, 5.25%, 06/15/41

    1,140       1,142,588  

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

    5,970       6,001,760  
   

 

 

 
      22,599,660  
New Mexico — 0.7%  

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

    2,970       3,094,443  
   

 

 

 
New York — 5.7%  

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

   

6.25%, 06/01/41(a)

    5,300       5,286,750  

5.00%, 06/01/42

    3,155       3,053,283  

5.00%, 06/01/45

    1,185       1,114,990  

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

   

5.00%, 06/01/45

    2,655       2,440,449  

5.00%, 06/01/51

    1,900       1,660,087  

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

    1,261       1,326,003  

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

    2,890       2,641,720  

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

   

Class 1, 5.00%, 11/15/44

    4,705       4,336,552  

Class 2, 5.15%, 11/15/34

    455       436,136  

Class 2, 5.38%, 11/15/40

    1,080       1,061,780  

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       1,364,040  

State of New York Power Authority, Refunding RB, Series A, 4.00%, 11/15/60(h)

    1,435       1,513,078  
   

 

 

 
      26,234,868  
North Carolina — 0.6%  

North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Retirement Facilities Whitestone Project, Series A,7.75%, 03/01/21(f):

    2,420       2,557,248  
   

 

 

 
Ohio — 2.7%  

Buckeye Tobacco Settlement Financing Authority, Refunding RB, Senior, Class 2, Series B-2, 5.00%, 06/01/55

    12,485       11,045,230  
Security   Par
(000)
    Value  
Ohio (continued)  

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

  $ 875     $ 784,595  

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

    840       763,173  
   

 

 

 
      12,592,998  
Oklahoma — 1.4%  

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

    750       738,367  

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

   

5.00%, 08/15/38

    2,990       3,040,770  

5.25%, 08/15/43

    2,690       2,767,284  
   

 

 

 
      6,546,421  
Oregon — 0.5%  

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

    1,765       1,663,424  

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

   

5.00%, 06/15/29

    120       115,758  

5.00%, 06/15/39

    565       480,838  
   

 

 

 
      2,260,020  
Pennsylvania — 1.9%  

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

    2,140       2,195,255  

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

    1,800       1,589,184  

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

    1,135       986,860  

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

    1,855       1,762,472  

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

    2,710       2,325,505  
   

 

 

 
      8,859,276  
Puerto Rico — 10.2%  

Children's Trust Fund, RB, Asset-Backed Bonds(b):

   

Series A, 0.00%, 05/15/57

    23,995       1,117,927  

Series B, 0.00%, 05/15/57

    24,385       610,357  

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

    850       837,335  

Commonwealth of Puerto Rico, GO(c)(d):

   

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

    145       96,052  

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

    515       341,150  

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

    50       33,121  

Commonwealth of Puerto Rico, GO, Refunding(c)(d):

   

Public Improvement, 5.00%, 07/01/18

    90       57,917  

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

    1,265       791,890  

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

    735       430,794  

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

    1,110       757,335  

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

    165       92,888  

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

    110       75,051  

Series A, 8.00%, 07/01/35

    3,355       1,916,544  

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

   

5.38%, 07/01/33

    500       331,214  

6.00%, 07/01/38

    750       511,713  

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

   

5.00%, 07/01/33

    170       161,474  

5.13%, 07/01/37

    200       188,838  
 

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Puerto Rico (continued)  

5.75%, 07/01/37

  $ 3,355     $ 3,338,728  

5.25%, 07/01/42

    670       629,787  

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

    4,290       4,254,479  

Puerto Rico Electric Power Authority, 1.00%, 01/01/21(c)(d)(i)

    90       58,319  

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

   

Series A, 7.00%, 07/01/33

    3,295       2,182,344  

Series A, 7.00%, 07/01/43

    375       248,370  

Series A, 5.00%, 07/01/29

    660       394,079  

Series A, 6.75%, 07/01/36

    1,140       755,045  

Series A, 5.00%, 07/01/42

    1,315       785,172  

Series A-3, 10.00%, 07/01/19

    323       274,978  

Series B-3, 10.00%, 07/01/19

    323       274,978  

Series C-1, 5.40%, 01/01/18

    887       576,844  

Series C-2, 5.40%, 07/01/18

    888       576,938  

Series C-4, 5.40%, 07/01/20

    90       58,319  

Series CCC, 5.25%, 07/01/26

    260       155,243  

Series CCC, 5.25%, 07/01/28

    145       86,578  

Series TT, 5.00%, 07/01/25

    100       59,709  

Series TT, 5.00%, 07/01/26

    225       134,345  

Series TT, 5.00%, 07/01/32

    190       113,447  

Series WW, 5.50%, 07/01/19

    200       119,967  

Series WW, 5.25%, 07/01/33

    120       71,651  

Series WW, 5.50%, 07/01/38

    205       122,403  

Series WW, 5.50%, 07/01/49

    1,320       791,781  

Series XX, 5.25%, 07/01/27

    110       65,680  

Series XX, 5.25%, 07/01/35

    60       35,825  

Series XX, 5.75%, 07/01/36

    85       50,753  

Series XX, 5.25%, 07/01/40

    1,020       609,031  

Puerto Rico Electric Power Authority, Refunding RB(c)(d):

   

Series AAA, 5.25%, 07/01/22

    2,545       1,519,592  

Series AAA, 5.25%, 07/01/29

    95       56,723  

Series UU, 1.00%, 07/01/19(e)

    115       74,750  

Series UU, 1.00%, 07/01/20(e)

    495       287,016  

Series UU, 1.66%, 07/01/31(i)

    580       336,301  

Series ZZ, 5.25%, 07/01/19

    455       272,924  

Series ZZ, 5.25%, 07/01/21

    50       29,854  

Series ZZ, 5.25%, 07/01/24

    345       205,996  

Series ZZ, 5.25%, 07/01/26

    40       23,884  

Series ZZ, 5.00%, 07/01/49

    145       86,976  

Puerto Rico Public Buildings Authority, Refunding RB(c)(d):

   

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

    235       193,875  

Series M, 10.00%, 07/01/34

    155       141,717  

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

   

CAB, Series A-1, 0.00%, 07/01/24(b)

    1,570       1,345,882  

CAB, Series A-1, 0.00%, 07/01/29(b)

    200       136,754  

CAB, Series A-1, 0.00%, 07/01/31(b)

    239       148,751  

CAB, Series A-1, 0.00%, 07/01/33(b)

    337       188,969  

CAB, Series A-1, 0.00%, 07/01/46(b)

    12,738       2,929,230  

CAB, Series A-1, 0.00%, 07/01/51(b)

    6,509       1,133,477  

Series A-1, 4.75%, 07/01/53

    2,453       2,209,736  

Series A-1, 5.00%, 07/01/58

    5,234       4,888,661  

Series A-2, 4.33%, 07/01/40

    1,729       1,544,170  

Series A-2, 4.78%, 07/01/58

    2,080       1,872,395  

Series A-2, 4.54%, 07/01/53

    21       18,213  

Series B-1, 4.55%, 07/01/40

    2,402       2,205,516  

Series B-1, 0.00%, 07/01/46(b)

    883       204,909  
   

 

 

 
      47,232,664  
Rhode Island — 2.2%  

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

    4,190       642,465  
Security   Par
(000)
    Value  
Rhode Island (continued)  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/40

  $ 980     $ 1,010,988  

Series B, 4.50%, 06/01/45

    5,055       5,152,814  

Series B, 5.00%, 06/01/50

    3,330       3,480,050  
   

 

 

 
      10,286,317  
South Carolina — 0.8%  

South Carolina Jobs-Economic Development Authority, RB, The Woodlands at Furman Project, Series A, 5.00%, 11/15/54

    345       288,403  

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

    3,275       3,442,221  
   

 

 

 
      3,730,624  
Tennessee — 0.6%  

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       860,703  

5.63%, 01/01/46

    1,085       980,341  

County of Shelby Health Educational & Housing Facilities Board, RB, The Farms at Bailey Station Project, 5.75%, 10/01/49

    1,045       885,544  
   

 

 

 
      2,726,588  
Texas — 7.3%  

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

   

0.00%, 01/01/28

    1,000       760,060  

0.00%, 01/01/29

    2,000       1,451,220  

0.00%, 01/01/30

    1,170       808,107  

0.00%, 01/01/33

    3,690       2,156,731  

0.00%, 01/01/34

    4,000       2,205,120  

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

   

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

    2,890       2,921,039  

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

    730       722,510  

County of Brazoria Industrial Development Corp., RB, Gladieux Metals Recycling, AMT, 7.00%, 03/01/39

    675       669,829  

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

    475       550,511  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Stayton at Museum Way, Series A, 5.75%, 12/01/54

    4,458       3,418,354  

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

    865       827,874  

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

    890       874,612  

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

   

5.88%, 04/01/36

    1,210       1,275,703  

6.00%, 04/01/45

    1,845       1,927,896  

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

    1,085       981,306  

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

   

5.50%, 08/15/35

    290       308,667  

5.75%, 08/15/45

    580       611,703  

Port Beaumont Navigation District, Refunding RB, Jefferson Gulf Coast, AMT(a):

   

3.63%, 01/01/35

    650       519,805  

4.00%, 01/01/50

    1,400       945,238  
 

 

 

24    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

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

   

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

  $ 2,895     $ 1,915,234  

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

    900       826,542  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, 7.00%, 06/30/40

    3,775       3,784,135  

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

   

0.00%, 08/01/46

    1,420       400,625  

0.00%, 08/01/47

    2,120       568,754  

0.00%, 08/01/48

    2,235       569,657  

0.00%, 08/01/49

    2,100       506,289  

0.00%, 08/01/50

    3,015       677,470  

0.00%, 08/01/51

    1,770       363,222  

0.00%, 08/01/52

    1,770       326,406  

0.00%, 08/01/53

    160       26,533  
   

 

 

 
      33,901,152  
Utah — 0.6%  

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

    2,950       2,951,593  
   

 

 

 
Virginia — 2.7%  

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

   

5.00%, 03/01/35

    495       478,388  

5.00%, 03/01/45

    505       448,784  

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

   

6.63%, 03/01/26

    1,485       1,492,009  

6.88%, 03/01/36

    1,300       1,304,251  

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

   

4.00%, 01/01/29

    300       280,215  

5.00%, 01/01/34

    485       476,988  

5.00%, 01/01/49

    955       862,661  

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

    2,370       2,245,575  

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

    535       464,214  

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

    4,440       4,576,885  
   

 

 

 
      12,629,970  
Washington — 0.9%  

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

    1,455       1,498,825  

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

    1,495       1,354,530  

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

   

5.75%, 01/01/35

    315       308,089  

6.00%, 01/01/45

    850       807,814  
   

 

 

 
      3,969,258  
Wisconsin — 2.6%  

Public Finance Authority, RB:

   

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

    605       598,702  

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

    605       583,855  
Security   Par
(000)
    Value  
Wisconsin (continued)  

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

  $ 900     $ 912,096  

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

    570       582,118  

Gray Collegiate Academy Project, 5.63%, 06/15/49(a)

    2,500       1,994,750  

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

    20       14,803  

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

    175       186,566  

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

    530       554,836  

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

    355       365,739  

Roseman University of Health Science Project, 5.00%, 04/01/50(a)

    115       102,039  

Series A, 5.63%, 06/15/49(a)

    2,950       2,353,805  

Traders Point Christian Schools, Series A(a):

    555       471,023  

5.38%, 06/01/44

   

5.50%, 06/01/54

    680       557,906  

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

    1,065       1,139,837  

Wisconsin Health & Educational Facilities Authority, RB, ST. Camillus Health System:

   

5.00%, 11/01/39

    440       383,152  

5.00%, 11/01/46

    470       388,812  

5.00%, 11/01/54

    785       626,603  

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

    225       188,091  
   

 

 

 
      12,004,733  

Total Municipal Bonds — 88.4%
(Cost — $430,377,081)

 

    409,654,116  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts — 24.6%(j)

 

Illinois — 3.2%  

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

    7,180       7,554,437  

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

   

4.00%, 02/15/27(f)

    4       3,957  

4.00%, 02/15/41

    1,495       1,577,282  

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

    5,056       5,545,783  
   

 

 

 
      14,681,459  
Massachusetts — 0.5%  

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

    2,268       2,416,268  
   

 

 

 
New York — 17.4%  

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

   

4.15%, 11/01/39

    1,893       1,960,186  

4.20%, 11/01/44

    3,470       3,592,952  

4.30%, 11/01/47

    2,840       2,940,236  

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       9,403,446  

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

   

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

    14,181       15,674,363  

Series HH, 5.00%, 06/15/31(k)

    8,610       8,955,003  

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

   

5.75%, 02/15/21(f)

    2,798       2,896,852  

5.75%, 02/15/47

    1,721       1,782,055  
 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

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

  $ 18,104     $ 18,985,277  

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

    6,600       6,883,978  

New York State Dormitory Authority, Refunding RB, Series D, 4.00%, 02/15/47

    6,956       7,471,584  
   

 

 

 
      80,545,932  
Pennsylvania — 0.6%  

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

    2,505       2,816,547  
   

 

 

 
Rhode Island — 0.4%  

Narragansett Bay Commission, Refunding RB, Wastewater System, Series A, 4.00%, 09/01/22(f)

    1,710       1,839,498  
   

 

 

 
Texas — 0.5%  

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

    2,271       2,329,363  
   

 

 

 
Washington — 1.8%  

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

    7,966       8,288,366  
   

 

 

 
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       1,217,950  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 24.6%
(Cost — $110,691,420)

 

    114,135,383  
   

 

 

 

Total Long-Term Investments — 113.0%
(Cost — $541,068,501)

 

    523,789,499  
   

 

 

 
Security   Shares         
Value
 
Short-Term Securities — 0.6%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.15%(l)(m)

    2,763,655     $ 2,764,208  
   

 

 

 

Total Short-Term Securities — 0.6%
(Cost — $2,764,208)

 

    2,764,208  
   

 

 

 

Total Investments — 113.6%
(Cost — $543,832,709)

 

    526,553,707  

Other Assets Less Liabilities — 1.4%

 

    6,486,224  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (15.0)%

 

    (69,609,380
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 463,430,551  
   

 

 

 

 

(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) 

Issuer filed for bankruptcy and/or is in default.

(d) 

Non-income producing security.

(e) 

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.

(f) 

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.

(g) 

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

(h) 

When-issued security.

(i) 

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 agreements, which expire between August 15, 2020 to May 15, 2021, is $11,849,806. See Note 4 of the Notes to Financial Statements for details.

(l) 

Annualized 7-day yield as of period end.

 
(m) 

Investments in issuers considered to be an affiliate/affiliates of the Fund during the year ended April 30, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Shares
Held at
04/30/19
     Shares
Purchased
     Shares
Sold
     Shares
Held at
04/30/20
     Value at
04/30/20
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     767,387        1,996,268 (b)              2,763,655      $ 2,764,208      $ 17,152      $ (41    $  
              

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

Represents net shares purchased (sold).

 

Derivative Financial Instruments Categorized by Risk Exposure

For the year ended April 30, 2020, 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

   $      $      $      $      $ (3,830,042    $      $ (3,830,042
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

 

                 

Futures contracts

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

26    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments:

 

Futures contracts:

        

Average notional value of contracts — long

   $ (a) 

Average notional value of contracts — short

     12,992,857  

 

  (a) 

Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period.

 

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. For information about the Fund's policy regarding valuation of investments, refer to the Notes to

Financial Statements.

The following table summarizes the Fund's investments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 523,789,499        $        $ 523,789,499  

Short-Term Securities

     2,764,208                            2,764,208  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,764,208        $ 523,789,499        $        $ 526,553,707  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

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 $69,231,546 are categorized as Level 2 within the disclosure hierarchy.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments

April 30, 2020

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 123.2%

   
Alabama — 0.3%  

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

  $ 1,010     $ 1,075,175  
   

 

 

 
Alaska — 0.3%  

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

    990       1,034,055  
   

 

 

 
Arizona — 1.6%  

Arizona IDA, RB(a):

   

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

    540       470,021  

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

    610       489,903  

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

    470       367,897  

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

    615       497,566  

County of Maricopa Arizona IDA, Refunding RB:

   

HonorHealth, Series A, 5.00%, 09/01/36

    645       724,045  

Legacy Traditional Schools Project, 5.00%, 07/01/39(a)

    230       216,269  

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

    745       790,237  

Legacy Traditional Schools Project, 5.00%, 07/01/54(a)

    530       478,283  

County of Pima IDA, RB, American Leadership Academy Project, 5.00%, 06/15/47(a)

    940       736,922  

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

    525       408,434  
   

 

 

 
      5,179,577  
Arkansas — 0.4%  

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

    1,540       1,315,083  
   

 

 

 
California — 14.4%  

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

    5,000       5,628,800  

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

    1,090       1,170,322  

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

    1,480       1,559,269  

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

    975       996,762  

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

    795       889,899  

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

   

Series A, 5.00%, 03/01/36

    410       459,315  

Series A, 5.00%, 03/01/37

    455       510,023  

Series A-1, 5.75%, 03/01/34

    850       874,522  

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

    675       704,362  

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

    12,740       10,247,164  

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

    1,475       1,441,193  

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

    2,500       2,516,350  
Security   Par
(000)
    Value  
California (continued)  

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

  $ 3,750     $ 2,361,862  

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

    5,000       2,970,450  

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

   

0.00%, 08/01/31

    2,145       1,306,498  

0.00%, 08/01/32

    2,680       1,533,014  

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

   

Series C, 0.00%, 07/01/38

    1,600       965,248  

Series G, 0.00%, 01/01/24(b)

    650       355,661  

Series G, 0.00%, 01/01/24(b)

    690       355,564  

Series G, 0.00%, 01/01/24(b)

    1,035       502,306  

Series G, 0.00%, 01/01/24(b)

    690       315,496  

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

   

0.00%, 07/01/30

    5,000       4,033,400  

0.00%, 07/01/31

    1,280       995,277  

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

   

5.00%, 08/01/21

    700       737,653  

5.00%, 08/01/21

    600       632,574  

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

    5,500       3,237,630  
   

 

 

 
      47,300,614  
Colorado — 1.7%  

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

    1,310       1,314,166  

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

    1,070       1,090,673  

Colorado Health Facilities Authority, Refunding RB, Commonspirit Health, Series A, 4.00%, 08/01/44

    1,060       1,029,779  

Regional Transportation District, COP, Refunding, Series A, 5.38%, 06/01/20(b)

    2,000       2,006,520  
   

 

 

 
      5,441,138  
Connecticut — 1.0%  

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

   

Sub-Series A-1, 3.85%, 11/15/43

    360       368,370  

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

    770       837,167  

Series A-1, 3.80%, 11/15/39

    465       479,587  

Connecticut State Health & Educational Facilities Authority, Refunding RB, University of Hartford Issue:

   

4.00%, 07/01/39

    295       292,012  

4.00%, 07/01/49

    540       514,668  

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

    615       713,443  
   

 

 

 
      3,205,247  
District of Columbia — 0.4%  

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

    435       436,183  

Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Refunding RB, Subordinate, Dulles Metrorail and Capital Improvement Projects, 4.00%, 10/01/49

    995       941,867  
   

 

 

 
      1,378,050  
Florida — 11.3%  

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

    1,600       1,674,752  
 

 

 

28    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

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

  $ 1,930     $ 1,925,889  

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

   

5.63%, 10/01/26

    960       1,001,366  

5.38%, 10/01/32

    3,160       3,276,004  

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

   

Series A, 6.00%, 10/01/38

    2,025       2,259,373  

Series B, AMT, 6.00%, 10/01/30

    640       713,491  

Series B, AMT, 6.25%, 10/01/38

    415       462,804  

Series B, AMT, 6.00%, 10/01/42

    660       731,201  

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

    480       519,725  

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

    190       204,934  

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

    2,995       3,180,390  

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

   

5.00%, 08/01/41

    560       561,400  

5.00%, 08/01/47

    1,620       1,586,677  

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

    475       499,040  

County of Osceola FL Transportation Revenue, Refunding RB, Series A-2(c):

   

0.00%, 10/01/41

    570       237,331  

0.00%, 10/01/42

    765       305,357  

0.00%, 10/01/43

    695       265,629  

0.00%, 10/01/44

    710       260,080  

0.00%, 10/01/45

    600       210,492  

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

   

5.00%, 10/01/21(b)

    30       31,725  

5.00%, 10/01/31

    1,970       2,070,155  

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

    1,750       2,048,025  

Florida Development Finance Corp., RB, AMT, Waste Pro USA, Inc.(a):

   

Solid Waste Disposal Facility, Project, 5.00%, 08/01/29(e)

    210       209,903  

5.00%, 05/01/29

    535       526,237  

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

   

5.13%, 06/01/27

    2,000       2,072,840  

5.38%, 10/01/29

    1,050       1,107,488  

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

   

Series A, 5.00%, 10/01/47

    3,970       4,294,944  

Sub-Series A, 5.00%, 10/01/52

    1,490       1,597,295  

Lakewood Ranch Stewardship District, Special Assessment Bonds, NorthEast Sector Project:

   

3.85%, 05/01/39

    450       382,302  

4.00%, 05/01/49

    675       600,723  

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

    2,065       2,311,974  
   

 

 

 
      37,129,546  
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       546,495  

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

    1,250       1,254,025  
Security   Par
(000)
    Value  
Georgia (continued)  

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

   

5.00%, 05/15/43

  $ 685     $ 733,025  

4.00%, 04/01/48(e)

    265       279,779  

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

    7,475       9,327,604  

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

   

5.00%, 04/01/33

    140       151,976  

5.00%, 04/01/44

    380       393,517  
   

 

 

 
      12,686,421  
Illinois — 12.6%  

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

   

CAB, 0.00%, 12/01/25(c)

    250       199,428  

5.00%, 12/01/29

    660       663,386  

5.00%, 12/01/30

    790       789,960  

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

    1,020       1,064,574  

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

   

3rd Lien, Series A, 5.75%, 01/01/39

    820       836,671  

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

    2,900       3,236,864  

City of Chicago Illinois Transit Authority, RB:

   

5.25%, 12/01/49

    900       964,098  

Sales Tax Receipts, 5.25%, 12/01/36

    595       627,035  

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

    45       48,137  

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

   

5.75%, 08/15/34

    650       680,310  

6.00%, 08/15/41

    1,000       1,047,250  

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

   

4.13%, 08/15/37

    740       740,999  

5.00%, 08/15/44

    350       361,557  

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

    1,365       1,489,351  

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

    1,785       1,981,796  

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

    9,145       10,066,633  

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

   

CAB (NPFGC), 0.00%, 12/15/26(c)

    5,000       3,992,650  

CAB (NPFGC), 0.00%, 12/15/33(c)

    9,950       5,674,087  

Bonds, 5.00%, 06/15/57

    760       676,795  

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

   

CAB, Series B (AGM), 0.00%, 06/15/44(c)

    3,450       1,167,169  

4.00%, 06/15/50

    585       487,135  

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

    675       712,321  

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

    1,275       1,312,115  

State of Illinois, GO:

   

5.25%, 02/01/33

    830       790,874  

5.50%, 07/01/33

    820       797,671  

5.25%, 02/01/34

    830       781,760  

5.50%, 07/01/38

    445       420,334  
   

 

 

 
      41,610,960  
Indiana — 0.8%  

Indiana Finance Authority, RB, Series A:

   

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

    1,100       1,158,091  

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

    515       527,066  
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Indiana (continued)  

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

  $ 890     $ 913,327  
   

 

 

 
      2,598,484  
Louisiana — 1.9%  

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

    2,820       3,022,617  

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-2, 6.50%, 11/01/35

    410       415,154  

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

    2,700       2,864,457  
   

 

 

 
      6,302,228  
Maine — 0.3%  

State of Maine Housing Authority, RB:

   

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

    710       764,386  

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

    200       198,828  
   

 

 

 
      963,214  
Maryland — 1.8%  

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

    740       542,442  

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

    4,015       4,047,200  

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

    1,150       1,224,394  
   

 

 

 
      5,814,036  
Massachusetts — 2.9%  

Collegiate Charter School of Lowell, RB, 5.00%, 06/15/54

    790       638,115  

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

    2,090       2,179,118  

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

    3,235       3,395,488  

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

    55       56,891  

Massachusetts HFA, Refunding RB, AMT:

   

Series A, 4.45%, 12/01/42

    765       789,526  

Series C, 5.35%, 12/01/42

    315       315,378  

Massachusetts School Building Authority, RB:

   

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

    1,280       1,409,907  

Sub-Series B, 4.00%, 02/15/43

    755       793,943  
   

 

 

 
      9,578,366  
Michigan — 5.2%  

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

    615       672,601  

Michigan Finance Authority, Refunding RB:

   

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

    1,175       1,129,022  

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

    20       21,288  

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

    2,945       3,067,424  

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

    640       757,869  

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

    1,640       1,652,956  

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

    1,065       1,140,327  

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

   

Series I-A, 5.38%, 10/15/36

    145       153,189  

Series I-A, 5.38%, 10/15/41

    700       737,772  

Series II-A (AGM), 5.25%, 10/15/36

    900       946,998  
Security   Par
(000)
    Value  
Michigan (continued)  

State of Michigan Housing Development Authority, RB:

   

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

  $ 1,885     $ 1,991,804  

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

    1,855       1,963,295  

M/F Housing, Series A-1, 3.35%, 10/01/49

    745       749,798  

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

    1,465       1,573,923  

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

    380       417,544  
   

 

 

 
      16,975,810  
Missouri — 0.3%  

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

    1,015       1,029,332  
   

 

 

 
Nebraska — 1.9%  

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

   

5.00%, 09/01/32

    5,010       5,302,985  

5.25%, 09/01/37

    750       798,420  
   

 

 

 
      6,101,405  
New Jersey — 9.9%  

New Jersey EDA, RB:

   

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

    895       909,955  

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

    685       707,557  

Series WW, 5.25%, 06/15/25(b)

    15       18,183  

Series WW, 5.25%, 06/15/33

    155       157,331  

Series WW, 5.00%, 06/15/34

    205       205,240  

Series WW, 5.00%, 06/15/36

    925       916,795  

Series WW, 5.25%, 06/15/40

    250       250,625  

New Jersey EDA, Refunding RB:

   

Series B, 5.50%, 06/15/30

    5,360       5,610,955  

Sub-Series A, 4.00%, 07/01/32

    1,040       1,000,345  

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

   

Series 1, 5.50%, 12/01/26

    235       246,033  

Series 1, 5.75%, 12/01/27

    1,475       1,549,311  

Series B, 3.25%, 12/01/39

    2,695       2,656,030  

Sub-Series C, 3.63%, 12/01/49

    725       658,866  

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

    970       1,000,070  

New Jersey Transportation Trust Fund Authority, RB:

   

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

    1,490       1,506,405  

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

    1,885       1,848,393  

Transportation System, Series A, 5.50%, 06/15/21(b)

    3,150       3,322,967  

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

    1,150       1,163,996  

Transportation System, Series B, 5.00%, 06/15/21(b)

    520       544,929  

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

    1,000       1,007,640  

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

    735       739,344  

New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System Bond, 4.00%, 12/15/39

    1,060       935,545  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/34

    920       1,035,846  

Series A, 5.00%, 06/01/36

    1,365       1,518,808  

Series A, 4.00%, 06/01/37

    870       894,830  

Sub-Series B, 5.00%, 06/01/46

    2,255       2,266,997  
   

 

 

 
      32,672,996  
New Mexico — 0.1%  

City of Santa Fe New Mexico, RB, EL Castillo Retirement Residences Project, Series A, 5.00%, 05/15/44

    200       170,464  
   

 

 

 
New York — 4.1%  

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       1,527,913  
 

 

 

30    2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

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

  $ 1,130     $ 1,222,174  

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

    1,480       1,601,434  

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

   

5.75%, 02/15/21(b)

    430       446,744  

5.75%, 02/15/47

    270       277,908  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.00%, 11/15/56

    1,490       1,523,197  

New York Liberty Development Corp., Refunding RB, 3 World Trade Center Project, Class 1, 5.00%, 11/15/44(a)

    1,150       1,059,944  

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

    2,715       2,767,942  

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

   

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

    625       678,425  

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

    1,250       1,334,300  

Series 207, 4.00%, 09/15/43

    460       472,089  

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

    170       177,783  

State of New York Power Authority, Refunding RB, Series A, 4.00%, 11/15/60(f)

    450       474,485  
   

 

 

 
      13,564,338  
North Carolina — 0.1%  

North Carolina Turnpike Authority, RB, Senior Lien, Triangle Express Way System:

   

4.00%, 01/01/55

    195       174,541  

(AGM), 4.00%, 01/01/55

    155       158,281  
   

 

 

 
      332,822  
Ohio — 3.4%  

Buckeye Tobacco Settlement Financing Authority, Refunding RB, Senior, Class 2, Series B-2, 5.00%, 06/01/55

    4,230       3,742,196  

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

    460       466,721  

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

    530       575,697  

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

    305       315,821  

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

    10,040       6,047,494  
   

 

 

 
      11,147,929  
Oklahoma — 0.2%  

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

    555       600,277  
   

 

 

 
Oregon — 0.8%  

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

    440       510,985  

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

    995       503,152  

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

    1,150       1,254,455  

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

    420       438,824  
   

 

 

 
      2,707,416  
Pennsylvania — 11.6%  

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

   

5.00%, 07/01/35

    755       809,670  

5.00%, 07/01/47

    1,610       1,692,851  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

Commonwealth Financing Authority, RB:

   

Series B, 5.00%, 06/01/22(b)

  $ 1,600     $ 1,736,112  

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

    1,050       1,104,747  

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

    950       955,748  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 06/30/42

    1,035       1,042,514  

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

    7,290       7,402,776  

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

    1,305       1,320,034  

Series A-1, 4.00%, 04/15/50

    995       1,008,502  

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

    940       955,143  

Pennsylvania Higher Education Assistance Agency, RB, AMT, Series B, 3.00%, 06/01/47

    200       167,312  

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

    2,330       2,482,708  

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

   

Series 127-B, 3.88%, 10/01/38

    885       937,525  

Series 128B, 3.85%, 04/01/38

    1,970       2,098,818  

Pennsylvania Turnpike Commission, RB:

   

Series A, 5.00%, 12/01/38

    620       671,720  

Series A-1, 5.00%, 12/01/41

    2,385       2,647,779  

Series B, 5.00%, 12/01/40

    935       1,025,826  

Series C, 5.50%, 12/01/23(b)

    555       643,195  

Series C, 5.00%, 12/01/39

    3,275       3,525,046  

Sub-Series A-1, 5.00%, 12/01/41

    2,430       2,625,421  

Pennsylvania Turnpike Commission, Refunding RB:

   

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

    2,070       2,193,289  

Series A-1, 5.00%, 12/01/40

    765       833,146  

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

    305       346,163  
   

 

 

 
      38,226,045  
Puerto Rico — 3.5%  

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

   

CAB, Series A-1, 0.00%, 07/01/46(c)

    2,121       487,745  

Series A-1, 5.00%, 07/01/58

    3,698       3,454,006  

Series A-2, 4.33%, 07/01/40

    7,263       6,486,585  

Series A-2, 4.78%, 07/01/58

    310       279,059  

Series B-1, 4.75%, 07/01/53

    476       429,009  

Series B-2, 4.78%, 07/01/58

    462       411,864  
   

 

 

 
      11,548,268  
Rhode Island — 1.5%  

Rhode Island Housing & Mortgage Finance Corp., RB, M/F Housing, Multi Family Development Bond, Series 1B, 3.90%, 10/01/37

    420       428,665  

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

    465       524,999  

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

   

4.50%, 06/01/45

    1,055       1,075,414  

5.00%, 06/01/50

    2,630       2,748,508  
   

 

 

 
      4,777,586  
South Carolina — 5.0%  

South Carolina Jobs EDA, Refunding RB, Series A:

   

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

    115       123,016  

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

    2,490       2,717,038  

South Carolina Jobs-Economic Development Authority, RB, Hilton Head Christian Academy, 5.00%, 01/01/55(a)

    975       757,867  
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (continued)

April 30, 2020

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
South Carolina (continued)  

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

  $ 530     $ 586,037  

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

    2,330       2,777,174  

State of South Carolina Public Service Authority, RB:

   

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

    6,225       6,570,114  

Series E, 5.50%, 12/01/53

    745       783,040  

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

    2,080       2,184,478  
   

 

 

 
      16,498,764  
South Dakota — 1.3%  

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

   

4.00%, 07/01/37

    1,225       1,287,695  

4.00%, 07/01/42

    3,000       3,138,000  
   

 

 

 
      4,425,695  
Tennessee — 0.7%  

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

    845       813,887  

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

    1,245       1,339,782  
   

 

 

 
      2,153,669  
Texas — 14.2%  

Brazos Higher Education Authority, Inc., RB, Subordinate, Student Loan Program, Series 1B (AMT), 3.00%, 04/01/40

    135       114,234  

Central Texas Turnpike System, RB, Series C, 5.00%, 08/15/37

    1,395       1,426,764  

Central Texas Turnpike System, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 08/15/22(b)

    3,080       3,364,592  

City of Houston Texas Airport System, Refunding ARB, Special Facilities, Continental Airlines, Inc., Series A, AMT, 6.63%, 07/15/38

    455       459,887  

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

    575       627,636  

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       1,131,690  

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

    1,880       2,145,682  

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

    750       828,292  

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

    3,160       3,538,505  

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

   

Series D, 5.00%, 11/01/38

    1,975       2,030,952  

Series D, 5.00%, 11/01/42

    1,500       1,521,330  

Series H, 5.00%, 11/01/32

    3,000       3,104,160  

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

    975       1,058,167  

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

    3,420       1,601,039  

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

    1,225       1,324,690  

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

   

0.00%, 09/15/35

    4,990       2,531,926  

0.00%, 09/15/36

    11,525       5,538,915  

0.00%, 09/15/37

    8,245       3,705,303  

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

    1,355       1,600,174  
Security   Par
(000)
    Value  
Texas (continued)  

Texas City Industrial Development Corp., RB, NRG Energy Project, 4.13%, 12/01/45

  $ 290     $ 291,749  

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

    390       416,797  

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