UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-09191

 

Name of Fund: BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniHoldings Quality Fund II, 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: 07/31/2011

 

Date of reporting period: 04/30/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments April 30, 2011 (Unaudited)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
 (Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 3.1%

 

 

 

 

 

 

 

Birmingham Special Care Facilities
Financing Authority, RB, Children’s
Hospital (AGC), 6.00%, 6/01/39

 

$

5,225

 

$

5,464,880

 

County of Jefferson Alabama, RB,
Series A, 5.50%, 1/01/22

 

 

3,580

 

 

3,143,813

 

 

 

 

 

 

 

 

 

 

 

 

8,608,693

 

Arizona — 0.4%

 

 

 

 

 

 

 

State of Arizona, COP, Department of
Administration, Series A (AGM),
5.25%, 10/01/28

 

 

1,175

 

 

1,206,314

 

Arkansas — 4.0%

 

 

 

 

 

 

 

Arkansas Development Finance
Authority, Refunding RB, Series C
(NPFGC), 5.35%, 12/01/35

 

 

11,115

 

 

11,137,897

 

California — 17.0%

 

 

 

 

 

 

 

California Educational Facilities
Authority, RB, University of Southern
California, Series A, 5.25%, 10/01/38

 

 

5,050

 

 

5,183,926

 

California Health Facilities Financing
Authority, Refunding RB, Sutter
Health, Series B, 6.00%, 8/15/42

 

 

2,865

 

 

2,905,425

 

City of Sunnyvale California, Refunding
RB, 5.25%, 4/01/40

 

 

2,800

 

 

2,831,696

 

City of Vista California, COP, Refunding,
Community Projects (NPFGC), 5.00%,
5/01/37

 

 

3,375

 

 

2,941,380

 

County of Sacramento California, RB,
Senior Series A (AGC), 5.50%,
7/01/41

 

 

3,500

 

 

3,479,280

 

Los Angeles Community College District
California, GO:

 

 

 

 

 

 

 

Election of 2001, Series A (NPFGC),
5.00%, 8/01/32

 

 

5,000

 

 

4,948,000

 

Election of 2008, Series C, 5.25%,
8/01/39

 

 

2,500

 

 

2,525,350

 

Oceanside Unified School District
California, GO, Series A (AGC), 5.25%,
8/01/33

 

 

3,175

 

 

3,176,619

 

Oxnard Union High School District, GO,
Refunding, Election of 2004, Series A
(AGM), 5.00%, 8/01/40

 

 

3,250

 

 

2,953,373

 

Port of Oakland, RB, Series K, AMT
(NPFGC), 5.75%, 11/01/21

 

 

2,975

 

 

2,976,398

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Port of Oakland, Refunding RB,
Series M, AMT (NPFGC), 5.38%,
11/01/27

 

$

2,220

 

$

2,098,100

 

Roseville Joint Union High School
District California, GO, Election of
2004, Series A (NPFGC), 5.00%,
8/01/29

 

 

2,985

 

 

2,993,656

 

San Bernardino Community College
District, GO, Election of 2002,
Series A, 6.25%, 8/01/33

 

 

2,165

 

 

2,370,502

 

San Francisco City & County Airports
Commission, RB, Special Facility
Lease, SFO Fuel, Series A, AMT (AGM),
6.10%, 1/01/20

 

 

1,250

 

 

1,251,800

 

Schools Infrastructure Financing
Agency, Special Tax Bonds (AGM),
5.50%, 9/01/36

 

 

230

 

 

219,703

 

State of California, GO, Refunding,
Veterans, Series BZ, AMT (NPFGC),
5.35%, 12/01/21

 

 

10

 

 

10,005

 

Stockton Public Financing Authority
California, RB, Redevelopment
Projects, Series A (Radian), 5.25%,
9/01/34

 

 

2,430

 

 

1,702,920

 

Ventura County Community College
District, GO, Election of 2002,
Series C, 5.50%, 8/01/33

 

 

3,175

 

 

3,295,777

 

 

 

 

 

 

 

 

 

 

 

 

47,863,910

 

Colorado — 1.6%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Hospital, NCMC Inc. Project, Series B
(AGM), 6.00%, 5/15/26

 

 

3,300

 

 

3,559,314

 

Colorado Housing & Finance Authority,
Refunding RB, S/F Program, Senior
Series A-2, AMT, 7.50%, 4/01/31

 

 

125

 

 

129,805

 

Regional Transportation District, COP,
Series A, 5.00%, 6/01/25

 

 

765

 

 

778,387

 

 

 

 

 

 

 

 

 

 

 

 

4,467,506

 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

GO

General Obligation Bonds

HFA

Housing Finance Agency

ISD

Independent School District

LOC

Letter of Credit

MRB

Mortgage Revenue Bonds

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

S/F

Single-Family

VRDN

Variable Rate Demand Notes

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2011

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
 (Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

District of Columbia — 0.9%

 

 

 

 

 

 

 

District of Columbia, RB, Deed Tax,
Housing Production Trust Fund,
Series A (NPFGC), 5.00%, 6/01/32

 

$

2,500

 

$

2,390,650

 

Florida — 15.4%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.00%,
10/01/37 (a)

 

 

350

 

 

52,612

 

Miami International Airport,
Series A, AMT (AGM), 5.25%,
10/01/41

 

 

12,420

 

 

11,235,877

 

Miami International Airport,
Series A, AMT (AGM), 5.50%,
10/01/41

 

 

6,700

 

 

6,295,923

 

Series A, AMT (AGM), 5.00%,
10/01/33

 

 

6,430

 

 

5,909,685

 

Water & Sewer System (AGM),
5.00%, 10/01/39

 

 

1,485

 

 

1,441,103

 

Jacksonville Port Authority, RB, AMT
(AGC), 6.00%, 11/01/38

 

 

3,625

 

 

3,647,729

 

Orange County School Board, COP,
Series A (AGC), 5.50%, 8/01/34

 

 

7,600

 

 

7,659,432

 

Tohopekaliga Water Authority,
Refunding RB, Series A, 5.25%,
10/01/36

 

 

6,965

 

 

7,014,730

 

 

 

 

 

 

 

 

 

 

 

 

43,257,091

 

Georgia — 3.8%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB
(AGM), 5.25%, 10/01/39

 

 

2,500

 

 

2,513,875

 

Gwinnett County Hospital Authority,
Refunding RB, Gwinnett Hospital
System, Series D (AGM), 5.50%,
7/01/41

 

 

3,425

 

 

3,293,240

 

Metropolitan Atlanta Rapid Transit
Authority, RB, Third Indenture,
Series B (AGM), 5.00%, 7/01/34

 

 

4,830

 

 

4,847,485

 

 

 

 

 

 

 

 

 

 

 

 

10,654,600

 

Idaho — 0.1%

 

 

 

 

 

 

 

Idaho Housing & Finance Association,
RB, S/F Mortgage, Series E, AMT,
6.00%, 1/01/32

 

 

245

 

 

250,966

 

Illinois — 7.8%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Refunding, Chicago School Reform
Board, Series A (NPFGC), 5.50%,
12/01/26

 

 

2,080

 

 

2,096,931

 

Chicago Transit Authority, RB, Federal
Transit Administration Section 5309,
Series A (AGC), 6.00%, 6/01/26

 

 

3,400

 

 

3,713,242

 

City of Chicago Illinois, GO, Refunding,
Projects, Series A (AGM), 5.00%,
1/01/29

 

 

2,380

 

 

2,311,837

 

City of Chicago Illinois, RB, General,
Third Lien, Series C (AGM), 5.25%,
1/01/35

 

 

2,085

 

 

2,059,793

 

City of Chicago Illinois, Refunding RB:

 

 

 

 

 

 

 

General, Third Lien, Series C,
6.50%, 1/01/41 (b)

 

 

2,230

 

 

2,376,377

 

Second Lien (NPFGC), 5.50%,
1/01/30

 

 

2,270

 

 

2,327,181

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

Railsplitter Tobacco Settlement
Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

$

2,350

 

$

2,267,468

 

6.00%, 6/01/28

 

 

670

 

 

644,366

 

State of Illinois, RB, Build Illinois,
Series B, 5.25%, 6/15/28

 

 

4,000

 

 

4,076,560

 

 

 

 

 

 

 

 

 

 

 

 

21,873,755

 

Indiana — 3.5%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB,
Series A (NPFGC), 5.00%, 1/01/42

 

 

8,000

 

 

7,409,840

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB,
Waterworks Project, Series A (AGC),
5.50%, 1/01/38

 

 

2,370

 

 

2,408,323

 

 

 

 

 

 

 

 

 

 

 

 

9,818,163

 

Iowa — 0.6%

 

 

 

 

 

 

 

Iowa Finance Authority, Refunding RB,
Iowa Health System (AGC), 5.25%,
2/15/29

 

 

1,710

 

 

1,721,816

 

Kansas — 0.5%

 

 

 

 

 

 

 

Sedgwick & Shawnee Counties Kansas,
MRB, Series A-2, AMT (Ginnie Mae),
6.20%, 12/01/33

 

 

1,480

 

 

1,502,200

 

Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky Economic Development
Finance Authority, RB, Louisville
Arena, Sub-Series A-1 (AGC), 6.00%,
12/01/38

 

 

1,000

 

 

1,011,430

 

Kentucky State Property & Buildings
Commission, Refunding RB, Project
No. 93 (AGC), 5.25%, 2/01/29

 

 

1,525

 

 

1,575,874

 

 

 

 

 

 

 

 

 

 

 

 

2,587,304

 

Louisiana — 1.4%

 

 

 

 

 

 

 

Louisiana State Citizens Property
Insurance Corp., RB, Series C-3 (AGC),
6.13%, 6/01/25

 

 

3,550

 

 

3,928,181

 

Michigan — 10.4%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series B (NPFGC),
5.50%, 7/01/29

 

 

4,170

 

 

4,088,018

 

Senior Lien, Series B (AGM), 7.50%,
7/01/33

 

 

2,500

 

 

2,916,675

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series C (BHAC),
5.75%, 7/01/27

 

 

2,600

 

 

2,692,352

 

Second Lien, Series E (BHAC),
5.75%, 7/01/31

 

 

5,060

 

 

5,172,787

 

Senior Lien, Series C-1 (AGM),
7.00%, 7/01/27

 

 

4,180

 

 

4,853,523

 

Senior Lien, Series C-2 (BHAC),
5.25%, 7/01/29

 

 

1,860

 

 

1,855,536

 

Kalamazoo Hospital Finance Authority,
RB, Bronson Methodist Hospital
(AGM), 5.25%, 5/15/36

 

 

1,255

 

 

1,169,070

 

Michigan State Building Authority,
Refunding RB, Facilities Program,
Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

1,440

 

 

1,505,578

 

5.25%, 10/15/25

 

 

750

 

 

773,857

 

 

 

 

2

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2011


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
 (Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

Michigan Strategic Fund, Refunding RB,
Detroit Edison Co. Project, Series A,
AMT (Syncora), 5.50%, 6/01/30

 

$

750

 

$

718,350

 

Royal Oak Hospital Finance Authority
Michigan, Refunding RB, William
Beaumont Hospital, 8.25%, 9/01/39

 

 

3,115

 

 

3,531,694

 

 

 

 

 

 

 

 

 

 

 

 

29,277,440

 

Minnesota — 0.7%

 

 

 

 

 

 

 

City of Minneapolis Minnesota,
Refunding RB, Fairview Health
Services, Series B (AGC), 6.50%,
11/15/38

 

 

1,975

 

 

2,104,323

 

Nevada — 5.2%

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO, Series A, 5.25%,
7/01/34

 

 

3,210

 

 

3,276,030

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Las Vegas-McCarran International
Airport, Series A (AGC), 5.25%,
7/01/39

 

 

5,765

 

 

5,410,510

 

Subordinate Lien, Series A-2
(NPFGC), 5.00%, 7/01/36

 

 

6,595

 

 

5,973,223

 

Nevada Housing Division, Refunding RB,
S/F Mortgage, Mezzanine, Series A-2,
AMT (NPFGC), 6.30%, 4/01/22

 

 

95

 

 

96,450

 

 

 

 

 

 

 

 

 

 

 

 

14,756,213

 

New Jersey — 6.2%

 

 

 

 

 

 

 

New Jersey EDA, RB, Motor Vehicle
Surcharge, Series A (NPFGC), 5.25%,
7/01/33

 

 

11,000

 

 

10,927,950

 

New Jersey Health Care Facilities
Financing Authority, RB, Virtua Health
(AGC), 5.50%, 7/01/38

 

 

3,400

 

 

3,417,476

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System,
Series A (AGC), 5.63%, 12/15/28

 

 

2,930

 

 

3,154,379

 

 

 

 

 

 

 

 

 

 

 

 

17,499,805

 

New York — 4.7%

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series EE, 5.25%,
6/15/40

 

 

6,930

 

 

7,067,283

 

Second General Resolution,
Series EE, 5.38%, 6/15/43

 

 

3,720

 

 

3,836,808

 

New York City Transitional Finance
Authority, RB, Fiscal 2009, Series S-3,
5.25%, 1/15/39

 

 

2,300

 

 

2,324,495

 

 

 

 

 

 

 

 

 

 

 

 

13,228,586

 

North Carolina — 0.4%

 

 

 

 

 

 

 

North Carolina HFA, RB, Home
Ownership, Series 14A, AMT (AMBAC),
5.35%, 1/01/22

 

 

1,020

 

 

1,021,306

 

Pennsylvania — 1.0%

 

 

 

 

 

 

 

Delaware River Port Authority, RB,
Series D (AGC), 5.00%, 1/01/40

 

 

3,000

 

 

2,950,410

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Puerto Rico — 1.3%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 6.38%,
8/01/39

 

$

3,500

 

$

3,627,820

 

South Carolina — 5.6%

 

 

 

 

 

 

 

South Carolina State Housing Finance &
Development Authority, Refunding RB,
Series A-2, AMT (AGM), 6.35%,
7/01/19

 

 

765

 

 

775,588

 

South Carolina State Public Service
Authority, RB, Series A (AMBAC),
5.00%, 1/01/42

 

 

15,000

 

 

15,028,350

 

 

 

 

 

 

 

 

 

 

 

 

15,803,938

 

Texas — 19.2%

 

 

 

 

 

 

 

City of Austin Texas, Refunding RB,
Series A (AGM):

 

 

 

 

 

 

 

5.00%, 11/15/28

 

 

1,795

 

 

1,849,927

 

5.00%, 11/15/29

 

 

2,270

 

 

2,320,076

 

City of Houston Texas, Refunding RB,
Combined, First Lien, Series A (AGC),
6.00%, 11/15/35

 

 

6,700

 

 

7,338,711

 

Clifton Higher Education Finance Corp.,
Refunding RB, Baylor University,
5.25%, 3/01/32

 

 

3,120

 

 

3,214,068

 

Dallas Area Rapid Transit, Refunding
RB, Senior Lien, 5.25%, 12/01/38

 

 

5,965

 

 

6,126,115

 

Harris County Health Facilities
Development Corp., Refunding RB,
Memorial Hermann Healthcare
System, Series B, 7.25%, 12/01/35

 

 

1,000

 

 

1,084,740

 

Lubbock Cooper ISD Texas, GO, School
Building (AGC), 5.75%, 2/15/42

 

 

1,250

 

 

1,288,638

 

North Texas Tollway Authority, RB,
System, First Tier, Series K-2 (AGC),
6.00%, 1/01/38

 

 

1,000

 

 

1,023,950

 

North Texas Tollway Authority,
Refunding RB (NPFGC), System,
First Tier:

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

11,575

 

 

11,241,756

 

Series A, 5.13%, 1/01/28

 

 

3,425

 

 

3,427,637

 

Series A, 5.63%, 1/01/33

 

 

10,975

 

 

10,899,272

 

Series B, 5.75%, 1/01/40

 

 

1,000

 

 

971,210

 

Tarrant County Cultural Education
Facilities Finance Corp., Refunding
RB, Christus Health, Series A (AGC),
6.50%, 7/01/37

 

 

3,000

 

 

3,107,610

 

 

 

 

 

 

 

 

 

 

 

 

53,893,710

 

Utah — 1.3%

 

 

 

 

 

 

 

City of Riverton Utah, RB, IHC Health
Services Inc., 5.00%, 8/15/41

 

 

4,085

 

 

3,785,079

 

Virginia — 0.9%

 

 

 

 

 

 

 

Virginia Public School Authority, RB,
School Financing, 6.50%, 12/01/35

 

 

2,195

 

 

2,421,085

 

Washington — 1.9%

 

 

 

 

 

 

 

City of Seattle Washington, Refunding
RB, Series A, 5.25%, 2/01/36

 

 

2,400

 

 

2,477,496

 

State of Washington, GO, Various
Purpose, Series B, 5.25%, 2/01/36

 

 

1,865

 

 

1,932,569

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2011

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Washington — (concluded)

 

 

 

 

 

 

 

Washington Health Care Facilities
Authority, Refunding RB, Providence
Health, Series C (AGM), 5.25%,
10/01/33

 

$

1,020

 

$

1,014,635

 

 

 

 

 

 

 

 

 

 

 

 

5,424,700

 

Total Municipal Bonds – 119.8%

 

 

 

 

 

337,063,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (c)

 

 

 

 

 

 

 

Alabama — 1.3%

 

 

 

 

 

 

 

Mobile Board of Water & Sewer
Commissioners, RB (NPFGC), 5.00%,
1/01/31

 

 

3,750

 

 

3,768,337

 

California — 3.8%

 

 

 

 

 

 

 

City of San Jose California, GO, Libraries,
Parks, and Public Safety Project
(NPFGC), 5.00%, 9/01/30

 

 

3,805

 

 

3,849,497

 

San Diego Community College District
California, GO, Election of 2002
(AGM), 5.00%, 5/01/30

 

 

1,486

 

 

1,490,321

 

Sequoia Union High School District
California, GO, Refunding, Election of
2004, Series B (AGM), 5.50%,
7/01/35

 

 

5,189

 

 

5,279,581

 

 

 

 

 

 

 

 

 

 

 

 

10,619,399

 

Colorado — 3.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Catholic Health, Series C-3 (AGM),
5.10%, 10/01/41

 

 

9,410

 

 

8,817,076

 

District of Columbia — 0.7%

 

 

 

 

 

 

 

District of Columbia Water & Sewer
Authority, RB, Series A, 6.00%,
10/01/35

 

 

1,700

 

 

1,860,724

 

Florida — 7.8%

 

 

 

 

 

 

 

City of St. Petersburg Florida, Refunding
RB (NPFGC), 5.00%, 10/01/35

 

 

6,493

 

 

6,349,511

 

County of Miami-Dade Florida, GO,
Building Better Communities Program,
Series B-1, 6.00%, 7/01/38

 

 

12,500

 

 

13,275,500

 

Lee County Housing Finance Authority,
RB, Multi-County Program, Series A-2,
AMT (Ginnie Mae), 6.00%, 9/01/40

 

 

2,235

 

 

2,375,894

 

 

 

 

 

 

 

 

 

 

 

 

22,000,905

 

Georgia — 2.3%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB
(AGM), 5.25%, 10/01/34

 

 

6,290

 

 

6,362,272

 

Illinois — 6.5%

 

 

 

 

 

 

 

Chicago Illinois O Hare International
Airport Rev Ser A, 5.00%, 1/01/38

 

 

7,500

 

 

7,098,187

 

City of Chicago Illinois, RB, Series A
(AGM), 5.00%, 1/01/33

 

 

7,500

 

 

7,098,188

 

City of Chicago Illinois, Refunding RB,
Second Lien (AGM), 5.25%, 11/01/33

 

 

3,969

 

 

3,983,377

 

 

 

 

 

 

 

 

 

 

 

 

18,179,752

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (c)

 

Par
(000)

 

Value

 

Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky State Property & Building
Commission, Refunding RB, Project
No. 93 (AGC), 5.25%, 2/01/27

 

$

2,304

 

$

2,411,815

 

Massachusetts — 1.8%

 

 

 

 

 

 

 

Massachusetts School Building
Authority, RB, Series A (AGM), 5.00%,
8/15/30

 

 

4,994

 

 

5,115,671

 

Nevada — 6.9%

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

10,000

 

 

10,808,300

 

Series B, 5.50%, 7/01/29

 

 

8,247

 

 

8,747,841

 

 

 

 

 

 

 

 

 

 

 

 

19,556,141

 

New Jersey — 1.4%

 

 

 

 

 

 

 

New Jersey State Housing & Mortgage
Finance Agency, RB, S/F Housing,
Series CC, 5.25%, 10/01/29

 

 

3,941

 

 

3,968,845

 

New York — 2.6%

 

 

 

 

 

 

 

Sales Tax Asset Receivable Corp., RB,
Series A (AMBAC), 5.25%, 10/15/27

 

 

6,751

 

 

7,225,882

 

Washington — 2.6%

 

 

 

 

 

 

 

City of Bellevue Washington, GO,
Refunding (NPFGC), 5.50%,
12/01/39

 

 

6,883

 

 

7,414,160

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 41.7%

 

 

 

 

 

117,300,979

 

Total Long-Term Investments
(Cost – $458,200,365) – 161.5%

 

 

 

 

 

454,364,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 

Florida — 0.4%

 

 

 

 

 

 

 

Jacksonville Health Facilities
Authority, Refunding RB, VRDN,
Baptist Series C (Bank of America
NA LOC), 0.27%, 8/15/27(d)

 

 

1,015

 

 

1,015,000

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

Money Market Fund – 5.5%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.23% (e)(f)

 

 

15,439,072

 

 

15,439,072

 

Total Short-Term Securities
(Cost – $16,454,072) – 5.9%

 

 

 

 

 

16,454,072

 

Total Investments

 

 

 

 

 

 

 

(Cost – $474,654,437*) – 167.4%

 

 

 

 

 

470,818,512

 

Other Assets Less Liabilities – 1.3%

 

 

 

 

 

3,685,855

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (22.1)%

 

 

 

 

 

(62,231,247

)

Preferred Shares, at Redemption Value – (46.6)%

 

 

 

 

 

(131,006,109

)

 

 

 

 

 

Net Assets Applicable to Common Shares–100.0%

 

 

 

 

$

281,267,011

 

 

 

 

 

 

 

 

 

4

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2011


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2011, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

412,645,977

 

 

 

Gross unrealized appreciation

 

$

6,896,769

 

Gross unrealized depreciation

 

 

(10,907,168

)

 

 

Net unrealized depreciation

 

$

(4,010,399

)

 

 

 

 

(a)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(b)

When-issued security. Unsettled when-issued transactions were as follows:

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

Citigroup Global Markets

 

$

2,376,377

 

$

23,995

 

 

 

(c)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(d)

Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

 

 

(e)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
July 31, 2010

 

Net
Activity

 

Shares
Held at
April 30, 2011

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

17,366,850

 

 

(1,927,778

)

 

15,439,072

 

$

15,477

 

 

 

(f)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of April 30, 2011 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

104

 

10-Year U.S. Treasury Note

 

Chicago Board of Trade

 

June 2011

 

$

12,325,427

 

$

(273,198

)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad levels for financial reporting purposes as follows:

 

 

 

 

•

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2011

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

The following tables summarize the inputs used as of April 30, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

454,364,440

 

 

—

 

$

454,364,440

 

Short-Term
Securities

 

$

15,439,072

 

 

1,015,000

 

 

—

 

 

16,454,072

 

Total

 

$

15,439,072

 

$

455,379,440

 

 

—

 

$

470,818,512

 

 

 

 

 

1

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(273,198

)

 

—

 

 

—

 

$

(273,198

)

 

 

 

 

2

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

 

 

 

6

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

APRIL 30, 2011

Item 2 –

Controls and Procedures

 

 

2(a) –

The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

2(b) –

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

BlackRock MuniHoldings Quality Fund II, Inc.

 

 
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer of
    BlackRock MuniHoldings Quality Fund II, Inc.
   
  Date: June 24, 2011
   
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Quality Fund II, Inc.
   
  Date: June 24, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniHoldings Quality Fund II, Inc.
     
  Date: June 24, 2011