BLACKROCK MUNIENHANCED 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: 811-05739

Name of Fund: BlackRock MuniEnhanced Fund, Inc. (MEN)

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 04/30/2019

Date of reporting period: 10/31/2018

 


Item 1 – Report to Stockholders

 


OCTOBER 31, 2018

 

SEMI-ANNUAL REPORT (UNAUDITED)

  LOGO

 

BlackRock MuniAssets Fund, Inc. (MUA)

BlackRock MuniEnhanced Fund, Inc. (MEN)

BlackRock MuniHoldings Fund, Inc. (MHD)

BlackRock MuniHoldings Fund II, Inc. (MUH)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

BlackRock MuniVest Fund II, Inc. (MVT)

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

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

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

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

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

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

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

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

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

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

  3.40%   7.35%

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

  (1.37)   1.85

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

  (9.92)   (6.85)

Emerging market equities
(MSCI Emerging Markets Index)

  (16.53)   (12.52)

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

  0.99   1.68

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

  (0.60)   (4.37)

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

  (0.19)   (2.05)

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

  0.45   (0.31)

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

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

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT


Table of Contents

 

      Page  

The Markets in Review

     2  

Semi-Annual Report:

  

Municipal Market Overview

     4  

The Benefits and Risks of Leveraging

     5  

Derivative Financial Instruments

     5  

Fund Summaries

     6  

Financial Statements:

  

Schedules of Investments

     20  

Statements of Assets and Liabilities

     72  

Statements of Operations

     74  

Statements of Changes in Net Assets

     76  

Statements of Cash Flows

     80  

Financial Highlights

     82  

Notes to Financial Statements

     89  

Disclosure of Investment Advisory Agreements

     99  

Director and Officer Information

     103  

Additional Information

     104  

Glossary of Terms Used in this Report

     107  

 

 

          3  


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

 

Municipal Market Conditions

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

 

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

  S&P Municipal Bond Index

Total Returns as of October 31, 2018

  6 months: 0.45%

12 months: (0.31)%

 

A Closer Look at Yields

 

LOGO

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

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

Financial Conditions of Municipal Issuers

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

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

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

 

 

4    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


The Benefits and Risks of Leveraging

 

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

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

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

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

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

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

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

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

Derivative Financial Instruments

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

 

 

THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS      5  


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

 

Investment Objective

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

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

Fund Information

 

Symbol on New York Stock Exchange (“NYSE”)

  MUA

Initial Offering Date

  June 25, 1993

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

  5.17%

Tax Equivalent Yield(b)

  8.73%

Current Monthly Distribution per Common Share(c)

  $0.0545

Current Annualized Distribution per Common Share(c)

  $0.6540

Economic Leverage as of October 31, 2018(d)

  13%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 
  (d) 

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

 

Performance

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

 

    Returns Based On  
     Market Price      NAV  

MUA(a)(b)

    (1.84 )%       1.19

Lipper High Yield Municipal Debt Funds(c)

    (1.78      0.27  

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

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

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

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

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

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

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

 

 

6    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

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

Net Asset Value

    13.83        14.01        (1.28      14.13        13.83  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector  

10/31/18

    04/30/18  

Health

    20     22

County/City/Special District/School District

    18       17  

Tobacco

    14       16  

Transportation

    12       15  

Education

    10       10  

Utilities

    10       9  

Corporate

    7       6  

State

    5       3  

Housing

    4       2  

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    13

2019

    5  

2020

    12  

2021

    19  

2022

    8  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating  

10/31/18

   

04/30/18

 

AAA/Aaa

    1     1

AA/Aa

    19       18  

A

    10       7  

BBB/Baa

    19       21  

BB/Ba

    12       12  

B/B

    18       19  

CCC/Caa

    1       1  

N/R(b)

    20       21  

 

  (a) 

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

 
  (b) 

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

 
 

 

 

FUND SUMMARY      7  


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

 

Investment Objective

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

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

Fund Information

 

Symbol on NYSE

  MEN

Initial Offering Date

  March 2, 1989

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

  5.94%

Tax Equivalent Yield(b)

  10.03%

Current Monthly Distribution per Common Share(c)

  $0.0480

Current Annualized Distribution per Common Share(c)

  $0.5760

Economic Leverage as of October 31, 2018(d)

  41%

 

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 
  (d) 

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

 

Performance

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

 

    Returns Based On  
     Market Price      NAV  

MEN(a)(b)

    (4.92 )%       (0.30 )% 

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

    (3.47      (0.13

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

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

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

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

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

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

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

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

 

 

8    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

     10/31/18     

04/30/18

     Change      High      Low  

Market Price

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

Net Asset Value

    11.11        11.46        (3.05      11.63        11.10  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18    

04/30/18

 

Transportation

    25     24

County/City/Special District/School District

    15       17  

Health

    14       14  

State

    13       16  

Utilities

    12       13  

Education

    9       9  

Finance

    7        

Housing

    2       2  

Corporate

    2       3  

Tobacco

    1       2  

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    5

2019

    13  

2020

    3  

2021

    11  

2022

    8  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

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

AAA/Aaa

    6     7

AA/Aa

    48       51  

A

    24       23  

BBB/Baa

    13       13  

BB/Ba

    2       2  

N/R(b)

    7       4  

 

  (a) 

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

 
  (b) 

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

 
 

 

 

FUND SUMMARY      9  


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

 

Investment Objective

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

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

Fund Information

 

Symbol on NYSE

  MHD

Initial Offering Date

  May 2, 1997

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

  5.99%

Tax Equivalent Yield(b)

  10.12%

Current Monthly Distribution per Common Share(c)

  $0.0700

Current Annualized Distribution per Common Share(c)

  $0.8400

Economic Leverage as of October 31, 2018(d)

  39%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

The monthly distribution per Common Share, declared on December 3, 2018, was decreased to $0.0675 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

 
  (d) 

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

 

Performance

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

 

    Returns Based On  
     Market Price      NAV  

MHD(a)(b)

    (3.73 )%       0.28

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

    (3.47      (0.13

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

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

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

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

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

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

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

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

 

 

10    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

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

Net Asset Value

    16.01        16.41        (2.44      16.58        16.01  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Transportation

    22     24

Health

    19       18  

Utilities

    14       14  

County/City/Special District/School District

    12       12  

State

    11       11  

Education

    9       9  

Tobacco

    6       6  

Corporate

    6       5  

Housing

    1       1  

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    4

2019

    22  

2020

    11  

2021

    12  

2022

    10  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

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

AAA/Aaa

    4     3

AA/Aa

    42       44  

A

    21       20  

BBB/Baa

    15       15  

BB/Ba

    4       4  

B

    4       4  

N/R(b)

    10       10  

 

  (a) 

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

 
  (b) 

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

 
 

 

 

FUND SUMMARY      11  


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

 

Investment Objective

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

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

Fund Information

 

Symbol on NYSE

  MUH

Initial Offering Date

  February 27, 1998

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

  5.82%

Tax Equivalent Yield(b)

  9.83%

Current Monthly Distribution per Common Share(c)

  $0.0615

Current Annualized Distribution per Common Share(c)

  $0.7380

Economic Leverage as of October 31, 2018(d)

  41%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 
  (d) 

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

 

Performance

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

 

    Returns Based On  
     Market Price      NAV  

MUH(a)(b)

    (5.24 )%       0.05

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

    (3.47      (0.13

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

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

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

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

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

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

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

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

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

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

 

 

12    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

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

Net Asset Value

    14.70        15.11        (2.71      15.27        14.70  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Health

    20     20

Transportation

    18       20  

State

    16       15  

County/City/Special District/School District

    12       13  

Utilities

    10       10  

Education

    7       9  

Tobacco

    5       6  

Financing

    5        

Corporate

    5       5  

Housing

    2       2  

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    3

2019

    24  

2020

    11  

2021

    11  

2022

    6  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

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

AAA/Aaa

    4     4

AA/Aa

    48       46  

A

    17       20  

BBB/Baa

    15       14  

BB/Ba

    4       4  

B

    4       4  

N/R(b)

    8       8  

 

  (a) 

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

 
  (b) 

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

 
 

 

 

FUND SUMMARY      13  


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

 

Investment Objective

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

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

Fund Information

 

Symbol on NYSE

  MUS

Initial Offering Date

  May 1, 1998

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

  5.43%

Tax Equivalent Yield(b)

  9.17%

Current Monthly Distribution per Common Share(c)

  $0.0505

Current Annualized Distribution per Common Share(c)

  $0.6060

Economic Leverage as of October 31, 2018(d)

  39%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 
  (d) 

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

 

Performance

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

 

    Returns Based On  
     Market Price      NAV  

MUS(a)(b)

    (7.40 )%       (0.21 )% 

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

    (3.47      (0.13

 

  (a) 

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

 
  (b) 

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

 
  (c)

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

 

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

Past performance is not indicative of future results.

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

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

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

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

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

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

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

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

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

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

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

 

 

14    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

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

Net Asset Value

    12.96        13.35        (2.92      13.48        12.96  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Transportation

    32     31

County/City/Special District/School District

    20       26  

Utilities

    14       14  

Education

    10       7  

State

    9       8  

Health

    8       8  

Housing

    4       3  

Tobacco

    2       2  

Corporate

    1       1  

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

CALL/MATURITY SCHEDULE (b)

 

Calendar Year Ended December 31,

       

2018

    5

2019

    12  

2020

    4  

2021

    18  

2022

    2  

 

  (b) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

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

AAA/Aaa

    4     6

AA/Aa

    53       52  

A

    28       28  

BBB/Baa

    11       10  

N/R

    4       4  

 

  (a) 

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

 
 

 

 

FUND SUMMARY      15  


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

 

Investment Objective

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

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

Fund Information

 

Symbol on NYSE

  MUI

Initial Offering Date

  August 1, 2003

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

  4.22%

Tax Equivalent Yield(b)

  7.13%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Economic Leverage as of October 31, 2018(d)

  40%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 
  (d) 

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

 

Performance

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

 

    Returns Based On  
     Market Price      NAV  

MUI(a)(b)

    (0.68 )%       0.22

Lipper Intermediate Municipal Debt Funds(c)

    (1.05      0.37  

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

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

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

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

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

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

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

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

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

 

 

16    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

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

Net Asset Value

    14.66        14.93        (1.81      15.15        14.66  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

Sector   10/31/18     04/30/18  

Transportation

    30     27

County/City/Special District/School District

    16       17  

State

    14       16  

Health

    12       10  

Education

    11       12  

Utilities

    8       9  

Corporate

    3       5  

Tobacco

    3       3  

Housing

    3       1  

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    1

2019

    8  

2020

    7  

2021

    15  

2022

    5  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

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

AAA/Aaa

    6     5

AA/Aa

    33       37  

A

    34       32  

BBB/Baa

    18       18  

BB/Ba

    2       2  

B

    3       1  

N/R(b)

    4       5  

 

  (a) 

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

 
  (b) 

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

 
 

 

 

FUND SUMMARY      17  


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

 

Investment Objective

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

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

Fund Information

 

Symbol on NYSE

  MVT

Initial Offering Date

  March 29, 1993

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

  5.95%

Tax Equivalent Yield(b)

  10.05%

Current Monthly Distribution per Common Share(c)

  $0.0635

Current Annualized Distribution per Common Share(c)

  $0.7620

Economic Leverage as of October 31, 2018(d)

  40%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 
  (d) 

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

 

Performance

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

 

    Returns Based On  
     Market Price      NAV  

MVT(a)(b)

    (6.34 )%       0.09

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

    (3.47      (0.13

 

  (a) 

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

 
  (b)

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

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

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

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

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

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

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

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

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

 

 

18    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

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

Net Asset Value

    14.36        14.75        (2.64      14.88        14.36  

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

 

LOGO

Overview of the Fund’s Total Investments*

 

SECTOR ALLOCATION

 

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

Transportation

    24     29

Health

    14       18  

Utilities

    14       13  

County/City/Special District/School District

    14       9  

State

    11       12  

Education

    9       6  

Corporate

    7       6  

Tobacco

    6       6  

Housing

    1       1  

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

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    6

2019

    16  

2020

    10  

2021

    11  

2022

    8  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

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

AAA/Aaa

    3     4

AA/Aa

    40       42  

A

    22       20  

BBB/Baa

    16       18  

BB/Ba

    4       5  

B

    4       5  

N/R(b)

    11       6  

 

  (a) 

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

 
  (b) 

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

 
 

 

 

FUND SUMMARY      19  


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 88.6%

 

Alabama — 1.3%

 

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

  $ 3,745     $ 4,228,330  

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

    2,165       2,322,114  
   

 

 

 
    6,550,444  
Alaska — 1.2%            

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

   

4.63%, 06/01/23

    225       225,043  

5.00%, 06/01/32

    1,500       1,492,635  

5.00%, 06/01/46

    4,290       4,169,022  
   

 

 

 
    5,886,700  
Arizona — 2.6%            

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

   

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

    960       972,989  

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

    1,500       1,408,395  

City of Phoenix Arizona IDA, RB:

   

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

    425       470,339  

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

    500       552,055  

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

    570       618,689  

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

    1,000       1,085,310  

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

   

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

    305       307,559  

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

    855       852,444  

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

    260       262,181  

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

    290       288,689  

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

    320       323,411  

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

    255       255,125  

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

    875       841,733  

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

    1,650       1,871,067  

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

    665       612,139  

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

    1,765       1,788,192  

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

    500       514,580  
   

 

 

 
    13,024,897  
California — 6.8%            

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

    1,650       1,565,471  

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

   

5.50%, 08/01/34

    315       309,932  

6.00%, 08/01/44

    665       666,523  

6.13%, 08/01/49

    580       583,416  

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

   

5.00%, 02/01/36

    345       375,074  

5.00%, 02/01/37

    255       276,287  

California School Finance Authority, RB:

   

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

    1,570       1,728,068  

Value Schools, 6.65%, 07/01/33

    435       479,879  

Value Schools, 6.90%, 07/01/43

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

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

   

5.25%, 12/01/38

  $ 580     $ 609,841  

Series A, 5.00%, 12/01/46

    725       737,318  

Series A, 5.25%, 12/01/56

    620       639,914  

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

    2,175       2,252,996  

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

    1,650       1,649,951  

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

   

0.00%, 08/01/26

    1,250       864,950  

0.00%, 08/01/43

    1,500       418,035  

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

   

6.50%, 05/01/36

    900       989,613  

6.50%, 05/01/42

    2,220       2,441,045  

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

    375       433,624  

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

   

5.60%, 06/01/36

    1,285       1,286,709  

5.70%, 06/01/46

    3,600       3,602,700  

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

    2,885       3,137,062  

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

    1,120       1,126,115  

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

   

4.75%, 06/01/25

    880       882,182  

5.00%, 06/01/37

    5,580       5,593,838  
   

 

 

 
    33,722,058  
Colorado — 1.4%            

Arista Metropolitan District, GO, Refunding, Series A:

   

5.00%, 12/01/38

    1,240       1,241,587  

5.13%, 12/01/48

    880       880,827  

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

    500       555,065  

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

    575       573,212  

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

    335       346,330  

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

    720       747,525  

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

    500       476,015  

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

    760       732,169  

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

    1,500       1,551,810  
   

 

 

 
    7,104,540  
Connecticut — 0.9%            

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

    1,400       1,417,668  

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

    971       1,032,777  

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

    1,835       1,990,241  
   

 

 

 
    4,440,686  
 

 

 

20    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Delaware — 0.9%            

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

  $ 1,000     $ 1,057,580  

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

    3,180       3,298,932  
   

 

 

 
    4,356,512  
Florida — 8.8%            

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

    1,460       1,442,232  

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

    1,500       1,451,940  

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

   

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

    515       360,500  

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

    1,105       773,500  

5.75%, 01/01/50

    655       622,250  

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

    1,910       1,847,448  

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

    630       607,975  

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

    915       940,766  

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

    3,500       3,727,990  

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

    500       561,115  

Florida Development Finance Corp., RB:

   

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

    690       721,913  

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

    835       872,492  

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

    3,180       3,298,042  

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

    1,550       1,588,161  

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

    1,115       1,142,239  

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

    1,820       1,801,218  

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

    380       381,273  

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

    105       105,664  

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

    1,485       1,666,942  

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

   

4.25%, 05/01/26

    145       144,356  

5.13%, 05/01/46

    860       845,672  

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

    4,550       5,163,203  

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

   

Series A, 5.00%, 05/01/37

    845       871,043  

Series B, 5.00%, 05/01/37

    495       510,256  

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

    3,845       2,845,589  

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

   

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

    580       563,853  

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

    305       247,950  

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

    805       527,492  

Tolomato Community Development District:

   

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

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

Tolomato Community Development District (continued):

   

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

  $ 50     $ 47,644  

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

    875       9  

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

    710       7  

Trout Creek Community Development District, Special Assessment Bonds:

   

5.38%, 05/01/38

    430       420,854  

5.50%, 05/01/49

    1,105       1,090,513  

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

   

6.75%, 05/01/31

    1,480       1,613,688  

7.00%, 05/01/41

    2,430       2,706,898  

5.50%, 05/01/42

    1,160       1,220,517  
   

 

 

 
    43,772,558  
Georgia — 1.1%            

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

    3,365       3,663,543  

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

   

6.38%, 11/15/19

    700       730,429  

6.63%, 11/15/19

    880       920,409  
   

 

 

 
    5,314,381  
Guam — 0.3%            

Territory of Guam, GO, Series A:

   

6.00%, 11/15/19

    140       141,749  

7.00%, 11/15/19(a)

    1,115       1,171,753  
   

 

 

 
    1,313,502  
Illinois — 6.6%            

Chicago Board of Education, GO:

   

Series H, 5.00%, 12/01/46

    720       719,957  

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

    1,655       1,685,071  

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

    745       669,591  

Chicago Board of Education, GO, Dedicated Revenues:

   

Series A, 5.00%, 12/01/42

    1,020       1,003,129  

Refunding, 5.00%, 12/01/27

    900       930,492  

Refunding, 5.00%, 12/01/31

    1,000       1,020,450  

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

    675       700,157  

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

    2,150       2,153,032  

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

    1,260       1,397,844  

Illinois Finance Authority, Refunding RB:

   

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

    4,000       4,246,680  

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

    2,395       2,471,856  

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

    780       770,515  

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

    365       376,366  

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

    860       883,728  

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

    2000       2,079,760  

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

   

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

    5,005       639,739  

5.50%, 06/15/53

    2,370       2,501,061  

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

    6,980       993,882  

Railsplitter Tobacco Settlement Authority, RB(a):

   

5.50%, 06/01/21

    180       194,348  

6.00%, 06/01/21

    710       775,441  
 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)            

State of Illinois, GO:

   

Series A, 5.00%, 01/01/33

  $ 740     $ 750,752  

Series D, 5.00%, 11/01/28

    1,365       1,405,868  

5.25%, 02/01/29

    1,000       1,041,750  

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

    1,975       2,026,172  

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

    1,659       1,662,102  
   

 

 

 
    33,099,743  
Indiana — 2.5%            

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

   

6.75%, 01/01/34

    825       942,241  

7.00%, 01/01/44

    2,000       2,295,360  

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

    2,315       2,354,540  

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

   

6.63%, 01/15/34

    290       303,868  

6.75%, 01/15/43

    525       549,118  

6.88%, 01/15/52

    2,450       2,567,600  

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

   

5.00%, 07/01/44

    470       492,034  

5.00%, 07/01/48

    1,555       1,623,840  

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

    1,190       1,209,968  
   

 

 

 
    12,338,569  
Iowa — 2.3%            

Iowa Finance Authority, Refunding RB:

   

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

    2,085       2,214,103  

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

    5       5,010  

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

    2,190       2,313,625  

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

    1,355       1,363,713  

Iowa Tobacco Settlement Authority, Refunding RB:

   

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

    795       797,250  

Series C, 5.38%, 06/01/38

    4,900       4,912,789  
   

 

 

 
    11,606,490  
Kentucky — 0.9%            

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

    4,000       4,289,640  
   

 

 

 
Louisiana — 2.0%            

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

    2,460       2,526,174  

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

    1,745       1,822,932  

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

    5,570       5,894,731  
   

 

 

 
    10,243,837  
Maine — 0.6%            

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

    2,955       3,134,398  
   

 

 

 
Maryland — 2.5%            

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

    2,835       3,002,860  

Maryland EDC, RB:

   

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

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

Maryland EDC, RB (continued):

   

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

  $ 3,615     $ 3,820,151  

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

    3,085       3,185,263  
   

 

 

 
    12,299,334  
Massachusetts — 1.0%            

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

   

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

    1,025       1,105,965  

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

    2,020       2,396,932  

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

   

6.75%, 01/01/21(a)

    895       979,962  

6.75%, 01/01/36

    595       647,390  
   

 

 

 
    5,130,249  
Michigan — 0.9%            

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

    2,785       2,948,145  

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

    415       434,904  

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

    920       972,541  
   

 

 

 
    4,355,590  
Minnesota — 0.1%            

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

   

5.75%, 09/01/46

    195       201,304  

6.00%, 09/01/51

    290       302,093  
   

 

 

 
    503,397  
Missouri — 0.9%            

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

   

4.38%, 11/15/35

    685       687,528  

4.75%, 11/15/47

    760       764,530  

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

    2,315       2,520,595  

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

    450       456,457  
   

 

 

 
    4,429,110  
New Hampshire — 0.3%            

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

   

Series B, 4.63%, 11/01/42

    1,015       982,824  

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

    485       473,273  
   

 

 

 
    1,456,097  
New Jersey — 3.7%            

Casino Reinvestment Development Authority, Refunding RB:

   

5.25%, 11/01/39

    1,065       1,123,170  

5.25%, 11/01/44

    770       809,971  

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

    1,150       1,153,542  

New Jersey EDA, RB:

   

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

    2,155       2,305,376  

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

    2,250       2,496,443  

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

    165       176,624  
 

 

 

22    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Jersey (continued)            

New Jersey EDA, RB (continued):

   

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

  $ 260     $ 274,235  

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

    2,245       2,326,089  

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

    1,530       1,644,046  

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

    500       495,785  

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

    2,650       2,880,630  

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

    1,140       1,193,067  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.25%, 06/01/46

    590       623,636  

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

    830       840,690  
   

 

 

 
    18,343,304  
New Mexico — 0.6%            

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

    2,970       3,143,092  
   

 

 

 
New York — 6.7%            

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

   

6.25%, 06/01/41(b)

    5,300       5,453,594  

5.00%, 06/01/42

    3,155       3,036,530  

5.00%, 06/01/45

    1,185       1,131,319  

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

   

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

    1,900       1,940,793  

Series B, 5.00%, 06/01/45

    2,655       2,765,342  

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

    970       911,800  

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

    1,286       1,339,794  

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

    2,890       2,779,746  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(a)

    1,490       1,492,593  

6.50%, 11/15/18(a)

    125       125,218  

6.50%, 11/15/28

    385       385,662  

New York Liberty Development Corp., Refunding RB:

   

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

    1,270       1,319,581  

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

    4,705       4,818,061  

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

    455       469,019  

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

    1,080       1,112,184  

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

    1,565       1,800,063  

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

    1,340       1,436,453  

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

    955       1,031,677  
   

 

 

 
    33,349,429  
North Carolina — 0.8%            

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

   

Deerfield Project, 6.13%, 11/01/18

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

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

   

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

  $ 1,000     $ 1,121,240  

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

    1,420       1,592,161  
   

 

 

 
    3,943,401  
Ohio — 3.2%            

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

   

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

    6,745       6,494,828  

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

    5,570       5,408,414  

6.00%, 06/01/42

    3,040       2,990,874  

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

    875       889,157  
   

 

 

 
    15,783,273  
Oklahoma — 1.4%            

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

    750       810,638  

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

   

5.00%, 08/15/38

    2,990       3,136,061  

5.25%, 08/15/43

    2,690       2,856,861  
   

 

 

 
    6,803,560  
Oregon — 0.8%            

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

    1,765       1,849,155  

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

   

5.13%, 07/01/35

    620       631,334  

5.38%, 07/01/45

    1,435       1,473,257  
   

 

 

 
    3,953,746  
Pennsylvania — 4.2%            

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

    2,140       2,181,195  

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

    2,000       2,111,720  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

   

5.00%, 06/01/33

    115       126,283  

5.00%, 06/01/34

    150       164,211  

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

   

6.38%, 01/01/19(a)

    5,550       5,588,794  

6.38%, 01/01/39

    615       619,452  

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

    1,800       1,804,932  

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

   

4.00%, 09/01/49

    620       590,401  

5.00%, 09/01/43

    1,365       1,474,978  

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

    1,135       1,115,535  

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

    1,945       2,173,343  

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

    2,710       2,800,704  
   

 

 

 
    20,751,548  
 

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Puerto Rico — 2.5%            

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

   

5.50%, 05/15/39

  $ 635     $ 644,017  

5.63%, 05/15/43

    2,145       2,174,193  

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

   

Public Improvement, 5.50%, 07/01/39

    665       389,025  

8.00%, 07/01/35

    1,765       1,041,350  

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

    750       450,000  

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

    1,445       1,372,750  

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

    2,215       2,104,250  

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

    3,355       3,145,312  

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

   

Series A, 5.00%, 07/01/29

    660       419,100  

Series A, 7.00%, 07/01/33

    210       135,450  

Series A, 5.00%, 07/01/42

    640       406,400  

Series TT, 5.00%, 07/01/25

    100       63,500  

Series XX, 5.25%, 07/01/40

    445       283,688  

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

    50       31,875  
   

 

 

 
    12,660,910  
Rhode Island — 2.2%            

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

    4,190       754,200  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    1,000       1,052,000  

Series A, 5.00%, 06/01/40

    980       1,019,494  

Series B, 4.50%, 06/01/45

    5,055       4,985,393  

Series B, 5.00%, 06/01/50

    3,330       3,414,282  
   

 

 

 
    11,225,369  
South Carolina — 0.7%            

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

    3,275       3,454,044  
   

 

 

 
Tennessee — 0.4%            

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

   

5.50%, 07/01/37

    925       972,397  

5.63%, 01/01/46

    1,085       1,129,810  
   

 

 

 
    2,102,207  
Texas — 10.2%            

Central Texas Regional Mobility Authority, Refunding RB:

   

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

    1,000       711,440  

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

    2,000       1,357,380  

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

    1,170       757,692  

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

    3,690       2,045,256  

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

    4,000       2,101,480  

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

    2,210       2,392,192  

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

   

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

    2,890       3,107,646  

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

    910       967,039  

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

   

5.50%, 08/15/21

    955       1,034,017  

5.75%, 08/15/21

    720       784,397  

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

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

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

  $ 475     $ 559,009  

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

    2,090       2,185,429  

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

    4,200       4,066,440  

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

    865       899,038  

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

    3,080       3,390,433  

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

    810       818,335  

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

    890       886,965  

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

    1,325       1,365,081  

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

   

5.88%, 04/01/36

    1,210       1,311,616  

6.00%, 04/01/45

    1,845       1,996,751  

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

    260       249,790  

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

   

5.50%, 08/15/35

    290       300,768  

5.75%, 08/15/45

    580       603,032  

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

    1,600       1,660,640  

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

   

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

    2,895       1,802,137  

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

    900       913,446  

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

   

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

    3,775       4,018,978  

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

    3,000       3,136,050  
   

 

 

 
    50,782,215  
Utah — 0.6%            

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

    2,950       2,952,360  
   

 

 

 
Vermont — 0.2%            

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

    770       803,072  
   

 

 

 
Virginia — 2.3%            

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

   

5.00%, 03/01/35

    495       492,233  

5.00%, 03/01/45

    505       492,688  

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

   

6.63%, 03/01/26

    1,485       1,581,718  

6.88%, 03/01/36

    1,300       1,388,569  

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

    2,355       2,307,170  

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

    535       544,058  
 

 

 

24    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Virginia (continued)  

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

  $ 4,440     $ 4,831,075  
   

 

 

 
      11,637,511  
Washington — 0.8%  

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

    1,455       1,480,986  

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

    1,495       1,509,247  

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

   

5.75%, 01/01/35

    315       310,414  

6.00%, 01/01/45

    850       842,163  
   

 

 

 
      4,142,810  
Wisconsin — 1.4%  

Public Finance Authority, RB:

   

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

    605       575,658  

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

    605       576,934  

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

    900       904,941  

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

    570       578,345  

Series A, 5.00%, 12/01/45

    1,505       1,526,431  

Series A, 5.15%, 12/01/50

    1,170       1,190,077  

Wisconsin Health & Educational Facilities Authority, Refunding RB:

   

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

    225       227,898  

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

    425       443,819  

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

    855       895,604  
   

 

 

 
      6,919,707  
   

 

 

 

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

 

    441,124,290  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(i)

 

Colorado — 2.4%

   

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

    11,468       11,766,090  
   

 

 

 
Illinois — 2.9%            

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

    7,180       7,762,119  

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

    1,499       1,440,865  

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

    5,056       5,491,295  
   

 

 

 
      14,694,279  
Massachusetts — 0.5%            

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

    2,268       2,272,966  
   

 

 

 
New York — 14.8%            

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

   

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

    8,996       9,034,050  

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

    1,893       1,913,680  

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

    3,470       3,507,709  

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

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

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

   

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

  $ 8,610     $ 9,141,093  

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

    14,181       15,523,310  

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

   

5.75%, 02/15/21(a)

    2,798       3,009,925  

5.75%, 02/15/47

    1,721       1,851,615  

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

    18,104       19,515,114  

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

    6,600       7,183,998  
   

 

 

 
    73,550,973  
Pennsylvania — 0.6%            

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

    2,505       2,804,172  
   

 

 

 
Rhode Island — 0.3%            

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

    1,710       1,712,331  
   

 

 

 
Texas — 0.4%            

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

    2,271       2,249,573  
   

 

 

 
Washington — 1.7%            

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

    7,966       8,455,086  
   

 

 

 
Wisconsin — 0.2%            

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

    1,142       1,095,697  
   

 

 

 

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

 

    118,601,167  
   

 

 

 

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

 

    559,725,457  
   

 

 

 
     Shares         
Short-Term Securities — 0.7%            

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

    3,111,236       3,111,547  
   

 

 

 

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

 

    3,111,547  
   

 

 

 

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

 

    562,837,004  

Other Assets Less Liabilities — 1.4%

 

    6,996,828  

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

 

    (72,026,607
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 497,807,225  
   

 

 

 

 

(a) 

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

(b) 

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

(c) 

Zero-coupon bond.

(d) 

Issuer filed for bankruptcy and/or is in default.

(e) 

Non-income producing security.

 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

(f) 

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

(g) 

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

(h) 

When-issued security.

(i) 

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

(j) 

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

(k) 

Annualized 7-day yield as of period end.

(l) 

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

 

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

Change in
Unrealized
Appreciation

(Depreciation)

 

BlackRock Liquidity Funds, MuniCash, Institutional Class

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

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Short Contracts:

                 

10-Year U.S. Treasury Note

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

Long U.S. Treasury Bond

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

5-Year U.S. Treasury Note

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

 

 

 
          $ 201,673  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Assets — Derivative Financial Instruments

 

                 

Futures contracts

                    

Net unrealized appreciation(a)

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

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

 

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

 

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

Net Realized Gain (Loss) from:

                    

Futures contracts

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 16,385,605  

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

 

 

26    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniAssets Fund, Inc. (MUA)

 

Fair Value Hierarchy as of Period End

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

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

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

Short-Term Securities

     3,111,547                            3,111,547  
  

 

 

      

 

 

      

 

 

      

 

 

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

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 201,673        $        $             —        $ 201,673  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 
  (b) 

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

 

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

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

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (unaudited)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Municipal Bonds — 124.8%  

Alabama — 0.3%

 

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

  $ 1,010     $ 1,077,418  
   

 

 

 
Alaska — 0.7%  

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

    990       1,057,964  

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

   

6.00%, 09/01/19

    765       790,184  

6.00%, 09/01/19

    435       449,320  
   

 

 

 
      2,297,468  
Arizona — 1.6%  

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

    2,240       2,207,498  

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

   

5.00%, 10/01/27

    2,700       2,768,472  

5.00%, 10/01/29

    400       409,924  
   

 

 

 
      5,385,894  
California — 13.8%  

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

    5,000       5,693,300  

California Health Facilities Financing Authority, RB:

   

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

    550       563,849  

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

    945       1,029,029  

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

    1,200       1,284,216  

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

    1,090       1,183,685  

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

    1,480       1,566,447  

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

    975       948,070  

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

   

Series A, 5.00%, 03/01/36

    410       450,668  

Series A, 5.00%, 03/01/37

    455       499,103  

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

    850       909,339  

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

    2,175       2,376,231  

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

    12,740       8,589,563  

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

    1,700       1,665,864  

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

    2,500       1,981,725  

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

    3,750       1,818,487  

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

    5,000       2,196,150  

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

   

0.00%, 08/01/31

    2,145       1,207,935  

0.00%, 08/01/32

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

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

   

Series C, 0.00%, 07/01/38

  $ 1,600     $ 716,160  

Series G, 0.00%, 07/01/34

    650       315,153  

Series G, 0.00%, 07/01/35

    690       314,744  

Series G, 0.00%, 07/01/36

    1,035       444,191  

Series G, 0.00%, 07/01/37

    690       278,705  

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

   

0.00%, 07/01/30

    5,000       3,309,200  

0.00%, 07/01/31

    1,280       803,584  

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

   

5.00%, 08/01/21

    700       757,603  

5.00%, 08/01/21

    600       649,374  

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

    5,500       2,584,670  
   

 

 

 
      45,553,720  
Colorado — 1.1%  

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

    1,375       1,363,175  

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

    2,000       2,089,160  
   

 

 

 
      3,452,335  
Connecticut — 1.0%  

Connecticut HFA, Refunding RB:

   

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

    770       765,195  

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

    445       429,033  

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

    1,445       1,408,037  

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

    615       671,900  
   

 

 

 
      3,274,165  
District of Columbia — 1.9%  

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

    5,360       5,369,112  

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

    1,030       1,010,131  
   

 

 

 
      6,379,243  
Florida — 10.1%  

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

    1,600       1,693,904  

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

   

6.00%, 11/15/19(a)

    5       5,204  

6.00%, 11/15/37

    1,445       1,501,991  

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

   

5.63%, 10/01/26

    960       1,030,550  

5.38%, 10/01/32

    3,160       3,363,378  

County of Miami-Dade Florida, RB, Seaport:

   

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

    2,025       2,274,986  

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

    415       467,896  

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

    660       738,296  

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

    640       721,178  

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

    885       885,566  

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

    190       205,310  

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

    2,995       3,231,365  
 

 

 

28    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Florida (continued)  

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

   

5.00%, 08/01/41

  $ 560     $ 593,891  

5.00%, 08/01/47

    1,620       1,711,433  

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

    560       517,194  

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

   

5.00%, 10/01/21(a)

    30       32,287  

5.00%, 10/01/31

    1,970       2,110,973  

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

    520       563,316  

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

    275       281,553  

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

   

5.13%, 06/01/27

    2,000       2,132,440  

5.38%, 10/01/29

    1,050       1,133,380  

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

   

5.00%, 10/01/47

    3,970       4,255,840  

5.00%, 10/01/52

    1,490       1,591,529  

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

    2,065       2,099,733  
   

 

 

 
      33,143,193  
Georgia — 3.5%  

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

    500       558,050  

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

    1,250       1,182,900  

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

    7,475       9,197,838  

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

   

5.00%, 04/01/33

    140       149,772  

5.00%, 04/01/44

    380       400,212  
   

 

 

 
      11,488,772  
Illinois — 16.0%  

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

   

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

    4,290       4,612,780  

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

    820       868,995  

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

    2,900       3,181,967  

City of Chicago Illinois Transit Authority, RB:

   

5.25%, 12/01/49

    900       978,372  

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

    595       625,494  

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

    45       46,454  

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

   

5.75%, 08/15/34

    650       698,126  

6.00%, 08/15/41

    1,000       1,082,070  

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

   

4.13%, 08/15/37

    740       711,377  

5.00%, 08/15/44

    350       365,943  

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

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

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

  $ 10,490     $ 10,514,861  

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

    1,785       1,926,283  

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

    9,145       10,019,445  

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

   

0.00%, 12/15/26

    5,000       3,536,750  

0.00%, 12/15/33

    9,950       4,750,627  

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

    3,450       983,284  

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

    675       737,215  

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

    2,460       2,581,819  

State of Illinois, GO:

   

5.25%, 02/01/33

    830       854,834  

5.50%, 07/01/33

    820       864,674  

5.25%, 02/01/34

    830       853,281  

5.50%, 07/01/38

    445       465,216  
   

 

 

 
      52,631,706  
Indiana — 1.0%  

Indiana Finance Authority, RB, Series A:

   

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

    1,100       1,175,834  

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

    515       539,143  

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

   

5.25%, 01/01/19(a)

    115       115,643  

5.25%, 01/01/29

    485       487,585  

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

    890       934,429  
   

 

 

 
      3,252,634  
Iowa — 2.6%  

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

    5,725       5,885,415  

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

   

5.60%, 12/01/26

    1,330       1,368,809  

5.70%, 12/01/27

    600       617,184  

5.80%, 12/01/29

    405       415,886  

5.85%, 12/01/30

    425       436,314  
   

 

 

 
      8,723,608  
Louisiana — 1.3%  

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

    2,795       2,960,296  

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

    1,250       1,259,450  
   

 

 

 
      4,219,746  
Maine — 1.0%  

Maine State Housing Authority, RB:

   

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

    1,405       1,410,241  

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

    1,260       1,262,797  

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

    645       594,387  
   

 

 

 
      3,267,425  
Maryland — 0.3%  

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

    1,150       1,142,226  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Massachusetts — 2.7%  

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

  $ 2,090     $ 2,189,714  

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

    3,235       3,187,413  

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

    795       806,750  

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

   

3.80%, 12/01/43

    255       241,544  

3.85%, 06/01/46

    75       70,384  

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

    375       376,609  

Massachusetts School Building Authority, RB:

   

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

    1,280       1,388,928  

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

    755       748,009  
   

 

 

 
      9,009,351  
Michigan — 3.1%  

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

    400       411,304  

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

    1,700       1,829,217  

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

    615       595,904  

Michigan Finance Authority, Refunding RB:

   

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

    325       266,529  

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

    20       21,609  

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

    2,180       2,148,477  

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

    1,040       1,108,963  

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

   

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

    145       156,278  

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

    700       752,171  

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

    900       970,551  

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

    1,465       1,466,612  

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

    380       416,016  
   

 

 

 
      10,143,631  
Minnesota — 0.8%  

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

   

6.50%, 11/15/18(a)

    385       385,647  

6.50%, 11/15/38

    2,115       2,118,553  
   

 

 

 
      2,504,200  
Mississippi — 0.1%  

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

    400       399,980  
   

 

 

 
Missouri — 0.3%  

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

    1,015       1,013,427  
   

 

 

 
Nebraska — 1.9%  

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

   

5.00%, 09/01/32

    5,010       5,382,994  

5.25%, 09/01/37

    750       812,580  
   

 

 

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

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

  $ 850     $ 864,314  

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

   

5.25%, 07/01/42

    500       515,890  

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

    3,800       3,922,094  
   

 

 

 
      5,302,298  
New Jersey — 8.7%  

New Jersey EDA, RB:

   

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

    895       957,453  

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

    685       728,813  

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

    1,975       1,984,756  

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

    25       25,125  

Series WW, 5.25%, 06/15/33

    155       164,773  

Series WW, 5.00%, 06/15/34

    205       214,504  

Series WW, 5.00%, 06/15/36

    925       962,453  

Series WW, 5.25%, 06/15/40

    265       279,045  

New Jersey EDA, Refunding RB:

   

Series B, 5.50%, 06/15/30

    5,360       5,908,542  

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

    1,270       1,227,049  

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

   

5.50%, 12/01/26

    300       314,505  

5.75%, 12/01/27

    1,950       2,055,436  

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

    970       986,015  

New Jersey Transportation Trust Fund Authority, RB:

   

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

    1,490       1,580,681  

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

    1,885       1,949,203  

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

    3,150       3,287,781  

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

    1,150       1,220,058  

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

    1,000       1,052,160  

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

    520       534,222  

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

    735       774,514  

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

   

5.00%, 06/01/46

    1,845       1,904,483  

5.25%, 06/01/46

    405       428,089  
   

 

 

 
      28,539,660  
New York — 6.9%  

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

    1,600       1,611,968  

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

    2,175       2,146,029  

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

    1,425       1,540,069  

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

    1,130       1,111,333  

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

    2,750       2,770,570  

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

    1,480       1,605,830  

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

   

5.75%, 02/15/21(a)

    430       465,041  

5.75%, 02/15/47

    270       288,932  

Metropolitan Transportation Authority, RB, Series C:

   

6.50%, 11/15/18(a)

    2,985       2,990,194  

6.50%, 11/15/18(a)

    245       245,426  

6.50%, 11/15/28

    770       771,324  
 

 

 

30    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

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

  $ 2,715     $ 2,857,212  

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

    460       450,740  

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

    1,200       1,217,376  

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

   

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

    2,500       2,502,125  

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

    170       166,015  
   

 

 

 
      22,740,184  
Ohio — 1.8%  

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

    460       443,918  

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

    530       595,079  

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

    325       316,687  

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

    10,000       4,618,100  
   

 

 

 
      5,973,784  
Oklahoma — 0.2%  

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

    555       546,514  
   

 

 

 
Oregon — 1.3%  

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

    440       445,262  

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

    995       432,855  

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

    550       524,821  

State of Oregon Housing & Community Services Department, RB:

   

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

    425       416,441  

Series D, 3.45%, 01/01/38

    2,760       2,532,162  
   

 

 

 
      4,351,541  
Pennsylvania — 9.3%  

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

    1,610       1,718,321  

Commonwealth Financing Authority, RB:

   

Series B, 5.00%, 06/01/42

    1,600       1,693,888  

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

    1,050       1,029,745  

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

    950       904,647  

Pennsylvania Economic Development Financing Authority, RB:

   

AMT, 5.00%, 06/30/42

    1,035       1,081,120  

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

    1,305       1,369,232  

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

    7,290       7,746,791  

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

    570       553,687  

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

    2,330       2,538,908  

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

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

Pennsylvania Turnpike Commission, RB:

   

Series A, 5.00%, 12/01/38

  $ 620     $ 667,709  

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

    2,385       2,575,156  

Series B, 5.00%, 12/01/40

    935       1,008,874  

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

    555       637,678  

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

    2,430       2,563,140  

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

    575       619,551  

Pennsylvania Turnpike Commission, Refunding RB:

   

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

    2,070       2,030,691  

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

    765       821,671  

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

    305       326,161  
   

 

 

 
      30,749,730  
Rhode Island — 1.5%  

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

    805       784,408  

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

    465       502,930  

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

   

4.50%, 06/01/45

    1,055       1,040,473  

5.00%, 06/01/50

    2,630       2,696,565  
   

 

 

 
      5,024,376  
South Carolina — 5.1%  

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

    115       128,042  

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

    530       568,590  

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

    3,000       3,086,130  

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

    2,330       2,517,169  

State of South Carolina Public Service Authority, RB:

   

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

    6,225       6,595,076  

Series E, 5.50%, 12/01/53

    745       785,729  

State of South Carolina Public Service Authority, Refunding RB:

   

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

    2,080       2,163,075  

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

    80       80,473  

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

    920       925,437  
   

 

 

 
      16,849,721  
South Dakota — 1.2%  

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

   

4.00%, 07/01/37

    1,225       1,204,371  

4.00%, 07/01/42

    3,000       2,901,690  
   

 

 

 
      4,106,061  
Tennessee — 2.1%  

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

    5,000       5,159,450  

Tennessee Housing Development Agency, RB:

   

3.60%, 07/01/42

    550       507,006  

3.65%, 07/01/47

    1,465       1,326,836  
   

 

 

 
      6,993,292  
Texas — 15.7%  

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

   

5.38%, 05/15/19

    1,280       1,303,462  

5.38%, 05/15/19

    70       71,302  
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

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

   

6.00%, 05/15/19

  $ 1,990     $ 2,033,083  

6.00%, 05/15/19

    110       112,411  

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

    575       618,850  

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

    2,130       993,517  

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

    750       819,338  

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

    3,160       3,465,288  

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

   

Series D, 5.00%, 11/01/38

    1,975       2,060,320  

Series D, 5.00%, 11/01/42

    1,500       1,562,190  

Series H, 5.00%, 11/01/32

    3,000       3,151,410  

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

    975       1,072,305  

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

    1,810       1,991,018  

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

    3,420       1,447,789  

North Texas Tollway Authority, Refunding RB:

   

4.25%, 01/01/49(d)

    1,225       1,202,460  

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

    2,270       2,284,800  

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

    525       528,176  

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

    4,015       4,041,178  

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

    3,800       3,823,218  

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

   

0.00%, 09/15/35

    4,990       2,304,182  

0.00%, 09/15/36

    11,525       5,011,416  

0.00%, 09/15/37

    8,245       3,371,545  

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

    1,355       1,496,584  

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

    390       391,693  

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

   

5.00%, 12/15/31

    1,190       1,264,446  

5.00%, 12/15/32

    705       747,991  

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

    1,275       1,332,656  

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

    3,080       3,249,061  
   

 

 

 
      51,751,689  
Utah — 0.6%  

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

   

5.00%, 07/01/48

    445       480,725  

5.00%, 07/01/42

    1,240       1,333,731  
   

 

 

 
      1,814,456  
Virginia — 0.1%  

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

   

5.50%, 05/15/19

    225       229,311  

5.50%, 05/15/19

    125       127,395  
   

 

 

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

Port of Seattle Washington, RB, AMT:

   

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

  $ 1,015     $ 1,086,710  

Series A, 5.00%, 05/01/43

    1,955       2,096,112  

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

    615       671,592  

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

   

4.00%, 10/01/45

    705       686,818  

Series A, 5.00%, 10/01/39

    525       540,078  

Series A, 5.25%, 10/01/39

    625       647,125  

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

    1,835       1,794,593  
   

 

 

 
      7,523,028  
West Virginia — 0.8%  

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

    2,945       2,675,768  
   

 

 

 
Wisconsin — 0.5%  

State of Wisconsin Health & Educational Facilities Authority, RB:

   

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

    1,375       1,409,925  

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

    315       300,274  
   

 

 

 
      1,710,199  
   

 

 

 

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

 

    411,564,723  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(e)

 

Arizona — 0.9%

 

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

    1,200       1,224,024  

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

    1,710       1,685,182  
   

 

 

 
      2,909,206  
California — 2.1%  

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

    3,827       3,837,291  

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

    1,571       1,803,211  

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

    404       414,288  

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

    840       858,163  
   

 

 

 
      6,912,953  
Colorado — 3.2%  

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

    2,324       2,581,262  

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

   

5.50%, 07/01/34(f)

    900       919,598  

5.00%, 02/01/41

    7,000       7,165,235  
   

 

 

 
      10,666,095  
Connecticut — 0.4%  

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

    1,381       1,496,333  
   

 

 

 
 

 

 

32    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

October 31, 2018

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

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

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

  $ 1,005     $ 1,039,665  
   

 

 

 
Florida — 4.9%  

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

    4,480       4,781,191  

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

    4,621       4,869,728  

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

    3,544       3,636,702  

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

    2,640       2,874,617  
   

 

 

 
      16,162,238  
Illinois — 3.3%  

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

    4,399       4,486,037  

State of Illinois Toll Highway Authority, RB:

   

Series A, 5.00%, 01/01/38

    2,138       2,284,292  

Series A, 5.00%, 01/01/40

    2,730       2,965,625  

Series B, 5.00%, 01/01/40

    1,050       1,131,332  
   

 

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