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: 07/31/2012

 

Date of reporting period: 10/31/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments October 31, 2011 (Unaudited)

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


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 3.0%

 

 

 

 

 

 

 

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

 

$

5,225

 

$

5,725,712

 

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

 

 

3,580

 

 

3,392,730

 

 

 

 

 

 

 

9,118,442

 

California — 17.2%

 

 

 

 

 

 

 

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

 

 

5,050

 

 

5,456,474

 

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

 

 

2,865

 

 

3,123,939

 

City of San Jose California Airport, RB,
Series A-1, AMT, 5.50%, 3/01/30

 

 

4,045

 

 

4,106,605

 

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

 

 

2,800

 

 

3,029,236

 

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

 

 

2,770

 

 

2,699,864

 

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

 

 

3,500

 

 

3,660,475

 

Emery Unified School District, GO,
Election of 2010, Series A (AGM),
5.50%, 8/01/35

 

 

1,875

 

 

1,995,637

 

Los Angeles Community College District
California, GO:

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,246,400

 

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

 

 

2,500

 

 

2,734,450

 

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

 

 

3,175

 

 

3,349,879

 

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

 

 

2,220

 

 

2,229,102

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Redondo Beach Unified School District,
GO, Election of 2008, Series E,
5.50%, 8/01/34

 

$

2,670

 

$

2,945,170

 

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

 

 

2,985

 

 

3,048,551

 

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

 

 

2,165

 

 

2,480,809

 

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

 

 

1,250

 

 

1,252,512

 

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

 

 

10

 

 

10,010

 

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

 

 

2,430

 

 

1,755,578

 

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

 

 

3,175

 

 

3,471,767

 

 

 

 

 

 

 

52,596,458

 

Colorado — 1.5%

 

 

 

 

 

 

 

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

 

 

3,300

 

 

3,707,583

 

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

 

 

120

 

 

122,739

 

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

 

 

765

 

 

810,961

 

 

 

 

 

 

 

4,641,283

 

Florida — 11.9%

 

 

 

 

 

 

 

City of Jacksonville Florida, RB, Series A,
5.25%, 10/01/26

 

 

2,000

 

 

2,237,680

 

 

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.

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.

Q-SBLF

Qualified School Bond Loan Fund

RB

Revenue Bonds

S/F

Single-Family

Syncora

Syncora Guarantee

VRDN

Variable Rate Demand Notes

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 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

 

Florida (concluded)

 

 

 

 

 

 

 

County of Lee Florida, Refunding RB,
Series A, AMT, 5.38%, 10/01/32

 

$

2,500

 

$

2,485,900

 

County of Miami-Dade Florida, RB,
Miami International Airport, Series A,
AMT (AGM):

 

 

 

 

 

 

 

5.25%, 10/01/41

 

 

4,895

 

 

4,872,826

 

5.50%, 10/01/41

 

 

4,715

 

 

4,774,220

 

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

 

 

3,625

 

 

3,671,581

 

Orange County Health Facilities
Authority, RB, The Nemours
Foundation Project, Series A, 5.00%,
1/01/29

 

 

2,540

 

 

2,602,840

 

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

 

 

7,600

 

 

8,056,380

 

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

 

 

6,965

 

 

7,500,191

 

 

 

 

 

 

 

36,201,618

 

Idaho — 0.1%

 

 

 

 

 

 

 

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

 

 

235

 

 

238,459

 

Illinois — 13.3%

 

 

 

 

 

 

 

Chicago Board of Education, GO,
Series A (a):

 

 

 

 

 

 

 

5.50%, 12/01/39

 

 

3,130

 

 

3,316,235

 

5.00%, 12/01/41

 

 

5,370

 

 

5,353,192

 

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

 

 

2,080

 

 

2,232,817

 

Chicago Illinois O’Hare International
Airport, RB:

 

 

 

 

 

 

 

General, Third Lien, Series C (AGM),
5.25%, 1/01/35

 

 

2,030

 

 

2,132,962

 

Series A, 5.75%, 1/01/39

 

 

2,000

 

 

2,182,820

 

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

 

 

3,400

 

 

3,835,812

 

Chicago Transit Authority, RB, Sales Tax
Receipts, 5.25%, 12/01/36 (a)

 

 

1,060

 

 

1,096,019

 

City of Chicago Illinois, Refunding RB:

 

 

 

 

 

 

 

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

 

 

9,085

 

 

10,451,566

 

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

 

 

2,270

 

 

2,495,093

 

Railsplitter Tobacco Settlement
Authority, RB:

 

 

 

 

 

 

 

5.50%, 6/01/23

 

 

2,350

 

 

2,480,613

 

6.00%, 6/01/28

 

 

670

 

 

696,679

 

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

 

 

4,000

 

 

4,282,120

 

 

 

 

 

 

 

40,555,928

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Indiana — 5.9%

 

 

 

 

 

 

 

Indiana Finance Authority WasteWater
Utility, RB, Series A, 5.25%, 10/01/31

 

$

4,725

 

$

5,107,914

 

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

 

 

6,300

 

 

6,431,733

 

Indianapolis Local Public Improvement
Bond Bank, RB, Series K, 5.00%,
6/01/25

 

 

3,720

 

 

3,958,712

 

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

 

 

2,370

 

 

2,551,234

 

 

 

 

 

 

 

18,049,593

 

Iowa — 0.6%

 

 

 

 

 

 

 

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

 

 

1,710

 

 

1,795,329

 

Kansas — 0.5%

 

 

 

 

 

 

 

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

 

 

1,415

 

 

1,436,678

 

Kentucky — 0.9%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,057,180

 

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

 

 

1,525

 

 

1,625,071

 

 

 

 

 

 

 

2,682,251

 

Massachusetts — 1.8%

 

 

 

 

 

 

 

Massachusetts School Building
Authority, RB, Series B, 5.00%,
10/15/41 (a)

 

 

5,085

 

 

5,430,170

 

Michigan — 11.2%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

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

 

 

4,170

 

 

4,371,786

 

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

 

 

3,500

 

 

4,149,215

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

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

 

 

2,600

 

 

2,788,318

 

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

 

 

5,060

 

 

5,423,460

 

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

 

 

4,180

 

 

4,892,272

 

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

 

 

1,860

 

 

1,943,812

 

Hudsonville Public Schools, GO, School
Building & Site (Q-SBLF), 5.25%,
5/01/41

 

 

3,420

 

 

3,616,513

 

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

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

1,440

 

 

1,588,723

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 2011

2


 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 10/15/25

 

$

750

 

$

822,862

 

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

 

 

750

 

 

751,418

 

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

 

 

3,115

 

 

3,694,577

 

 

 

 

 

 

 

34,042,956

 

Minnesota — 0.7%

 

 

 

 

 

 

 

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

 

 

1,975

 

 

2,214,805

 

Nevada — 4.8%

 

 

 

 

 

 

 

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

 

 

3,210

 

 

3,430,976

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

4,565

 

 

4,758,510

 

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

 

 

6,520

 

 

6,564,793

 

 

 

 

 

 

 

14,754,279

 

New Jersey — 5.9%

 

 

 

 

 

 

 

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

 

 

11,000

 

 

11,390,170

 

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

 

 

3,400

 

 

3,562,010

 

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

 

 

2,930

 

 

3,211,016

 

 

 

 

 

 

 

18,163,196

 

New York — 5.8%

 

 

 

 

 

 

 

Hudson Yards Infrastructure Corp., RB,
Series A, 5.75%, 2/15/47

 

 

940

 

 

995,375

 

New York City Municipal Water Finance
Authority, RB:

 

 

 

 

 

 

 

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

 

 

6,930

 

 

7,475,114

 

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

 

 

2,220

 

 

2,440,602

 

New York City Transitional Finance
Authority, RB:

 

 

 

 

 

 

 

Sub-Series S-2A, 5.00%,
7/15/30

 

 

4,045

 

 

4,370,865

 

Fiscal 2009, Series S-3,
5.25%, 1/15/39

 

 

2,300

 

 

2,454,560

 

 

 

 

 

 

 

17,736,516

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

North Carolina — 0.3%

 

 

 

 

 

 

 

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

 

$

970

 

$

970,795

 

Pennsylvania — 2.3%

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,099,300

 

Philadelphia Hospitals and Higher
Education Facilities Authority, RB,
Children’s Hospital, Series D, 5.00%,
7/01/32

 

 

3,705

 

 

3,834,008

 

 

 

 

 

 

 

6,933,308

 

Puerto Rico — 1.3%

 

 

 

 

 

 

 

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

 

 

3,500

 

 

3,879,190

 

South Carolina — 6.2%

 

 

 

 

 

 

 

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

 

 

535

 

 

542,511

 

South Carolina State Public Service
Authority, RB:

 

 

 

 

 

 

 

Santee Cooper, Series A,
5.50%, 1/01/38

 

 

2,500

 

 

2,718,525

 

Series A (AMBAC), 5.00%, 1/01/42

 

 

15,000

 

 

15,558,300

 

 

 

 

 

 

 

18,819,336

 

Texas — 20.4%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 11/15/28

 

 

1,795

 

 

1,939,910

 

5.00%, 11/15/29

 

 

2,270

 

 

2,431,828

 

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

 

 

6,700

 

 

7,648,854

 

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

 

 

3,120

 

 

3,380,645

 

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

 

 

5,655

 

 

6,061,877

 

Harris County Cultural Education
Facilities Finance Corp., RB, Children’s
Hospital Project, 5.25%, 10/01/29

 

 

2,080

 

 

2,208,461

 

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

 

 

1,000

 

 

1,122,000

 

Harris County Metropolitan Transit
Authority, RB, Series A, 5.00%,
11/01/36

 

 

1,265

 

 

1,356,561

 

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

 

 

1,250

 

 

1,354,163

 

North Texas Tollway Authority, RB:

 

 

 

 

 

 

 

First Tier, Series K-2 (AGC), 6.00%,
1/01/38

 

 

1,000

 

 

1,094,150

 

Special Projects System,
Series A, 5.50%, 9/01/41

 

 

5,480

 

 

5,956,650

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 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

 

Texas (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series A, 5.63%, 1/01/33

 

$

10,975

 

$

11,476,448

 

Series A, 5.75%, 1/01/40

 

 

11,575

 

 

12,061,034

 

Series B, 5.75%, 1/01/40

 

 

1,000

 

 

1,041,990

 

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

 

 

3,000

 

 

3,228,720

 

 

 

 

 

 

 

62,363,291

 

Utah — 1.2%

 

 

 

 

 

 

 

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

 

 

3,500

 

 

3,547,075

 

Virginia — 0.8%

 

 

 

 

 

 

 

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

 

 

2,195

 

 

2,508,687

 

Washington — 1.8%

 

 

 

 

 

 

 

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

 

 

2,400

 

 

2,631,840

 

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

 

 

1,865

 

 

2,052,731

 

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

 

 

670

 

 

698,609

 

 

 

 

 

 

 

5,383,180

 

West Virginia — 0.6%

 

 

 

 

 

 

 

West Virginia University, RB, Series B,
5.00%, 10/01/36

 

 

1,700

 

 

1,819,289

 

Total Municipal Bonds – 120.0%

 

 

 

 

 

365,882,112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (b)

 

 

 

 

 

 

 

Alabama — 1.3%

 

 

 

 

 

 

 

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

 

 

3,750

 

 

3,860,475

 

California — 3.6%

 

 

 

 

 

 

 

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

 

 

3,805

 

 

3,878,605

 

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

 

 

1,486

 

 

1,576,703

 

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

 

 

5,189

 

 

5,483,185

 

 

 

 

 

 

 

10,938,493

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts

 

Par
(000)

 

Value

 

Colorado — 3.1%

 

 

 

 

 

 

 

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

 

$

9,410

 

$

9,534,494

 

District of Columbia — 0.7%

 

 

 

 

 

 

 

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

 

 

1,700

 

 

2,004,714

 

Florida — 7.4%

 

 

 

 

 

 

 

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

 

 

6,493

 

 

6,650,258

 

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

 

 

12,500

 

 

13,857,000

 

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

 

 

2,115

 

 

2,227,433

 

 

 

 

 

 

 

22,734,691

 

Georgia — 2.2%

 

 

 

 

 

 

 

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

 

 

6,290

 

 

6,662,494

 

Illinois — 6.4%

 

 

 

 

 

 

 

Chicago Illinois O’Hare International
Airport, RB, Series A, 5.00%, 1/01/38

 

 

15,000

 

 

15,308,550

 

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

 

 

3,969

 

 

4,140,986

 

 

 

 

 

 

 

19,449,536

 

Kentucky — 0.8%

 

 

 

 

 

 

 

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

 

 

2,304

 

 

2,491,811

 

Massachusetts — 1.7%

 

 

 

 

 

 

 

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

 

 

4,994

 

 

5,327,809

 

Nevada — 6.7%

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

10,000

 

 

11,234,200

 

Series B, 5.50%, 7/01/29

 

 

8,247

 

 

9,137,488

 

 

 

 

 

 

 

20,371,688

 

New Jersey — 1.3%

 

 

 

 

 

 

 

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

 

 

3,941

 

 

4,100,362

 

New York — 2.4%

 

 

 

 

 

 

 

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

 

 

6,751

 

 

7,324,432

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 2011

4


 

 

 

 

Schedule of Investments (continued)

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

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts

 

Par
(000)

 

Value

 

Washington — 2.5%

 

 

 

 

 

 

 

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

 

$

6,883

 

$

7,536,899

 

Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts –
40.1%

 

 

 

 

 

122,337,898

 

Total Long-Term Investments
(Cost – $467,469,218) – 160.1%

 

 

 

 

 

488,220,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short Term Securities

 

 

 

 

 

 

 

Florida – 0.3%

 

 

 

 

 

 

 

Jacksonville Health Facilities Authority,
Refunding RB, Baptist Series C, (Bank
of America NA LOC), VRDN, 0.20%,
11/07/11 (e)

 

 

970

 

 

970,000

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

Money Market - 5.9%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.01%, 11/07/11 (c)(d)

 

 

17,961,147

 

 

17,961,147

 

Total Short-Term Securities
(Cost - $18,931,147) – 6.2%

 

 

 

 

 

18,931,147

 

Total Investments (Cost — $486,400,365*) - 166.3%

 

 

 

 

 

507,151,157

 

Liabilities in Excess of Other Assets – (2.9)%

 

 

 

 

 

(8,959,977

)

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (20.4)%

 

 

 

 

 

(62,135,209

)

Preferred Shares, at Redemption Value – (43.0)%

 

 

 

 

 

(131,004,280

)

Net Assets Applicable to Common Shares– 100.0%

 

 

 

 

$

305,051,691

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate Cost

 

$

424,297,431

 

Gross unrealized appreciation

 

$

22,140,974

 

Gross unrealized depreciation

 

 

(1,390,182

)

Net unrealized appreciation

 

$

20,750,792

 

 

 

(a)

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


 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

Citigroup Global Markets

 

$

5,353,192

 

$

27,289

 

Pershing LLC

 

$

3,316,235

 

$

76,184

 

Wells Fargo Bank

 

$

1,096,019

 

$

4,293

 

Barclay’s Capital, Inc.

 

$

5,430,170

 

$

17,238

 

 

 

(b)

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

 

 

(c)

Represents the current yield as of report date.

 

 

(d)

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,
2011

 

Net
Activity

 

Shares
Held at
October 31,
2011

 

Income

 

FFI Institutional Tax-Exempt Fund

 

 

13,223,965

 

 

4,737,182

 

 

17,961,147

 

$

18,684

 

 

 

 

(e)

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

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

 

 

 

•

Level 1 — unadjusted 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)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Fund’s perceived risk of 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 annual report.

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 2011

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

The following table summarizes the inputs used as of October 31, 2011 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

—

 

$

488,220,010

 

 

—

 

$

488,220,010

 

Short-Term Securities

 

$

17,961,147

 

 

970,000

 

 

—

 

 

18,931,147

 

Total

 

$

17,961,147

 

$

489,190,010

 

 

—

 

$

507,151,157

 

 

 

1

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


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 2011

6

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 (principal executive officer) of

 

 

BlackRock MuniHoldings Quality Fund II, Inc.

 

 

 

Date: December 21, 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: December 21, 2011

 

 

 

 By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

 

BlackRock MuniHoldings Quality Fund II, Inc.

 

 

 

 

Date: December 21, 2011