UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05611
Name of Fund: BlackRock MuniVest Fund, Inc. (MVF)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock MuniVest Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 08/31/2008
Date of reporting period: 09/01/2007 - 02/29/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock MuniVest Fund, Inc. BLACKROCK
(MVF)
SEMI-ANNUAL REPORT
FEBRUARY 29, 2008 | (UNAUDITED)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
================================================================================
Page
--------------------------------------------------------------------------------
A Letter to Shareholders ................................................. 3
Semi-Annual Report:
Fund Summary ............................................................. 4
The Benefits and Risks of Leveraging ..................................... 5
Swap Agreements .......................................................... 5
Financial Statements:
Schedule of Investments ................................................ 6
Statement of Assets and Liabilities .................................... 12
Statement of Operations ................................................ 12
Statements of Changes in Net Assets .................................... 13
Financial Highlights ..................................................... 14
Notes to Financial Statements ............................................ 15
Officers and Directors ................................................... 19
Additional Information ................................................... 20
2 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
A Letter to Shareholders
Dear Shareholder
Financial markets weathered intense bouts of volatility in 2007, only to enter
2008 with no relief. January and February proved to be trying months for
equities, but strong ones for some areas of the bond market, as fears of an
economic recession swelled. The Federal Reserve Board (the "Fed"), after cutting
the target federal funds rate 100 basis points (1%) between September 2007 and
year-end, more than matched those cuts in January alone. Responding to a slowing
economy and continued fallout from chaos in the credit markets, the Fed cut
interest rates 75 basis points in a rare unscheduled session on January 22, and
followed with a 50-basis-point cut at its regular meeting on January 30. Another
75-basis-point cut on March 18 brought the target rate to 2.25%.
Reverberations from the U.S. subprime mortgage collapse, and the associated
liquidity and credit crisis, continue to permeate global financial markets. The
S&P 500 Index of U.S. stocks was down in February, marking the fourth
consecutive month of negative returns. International markets, while not
unscathed, generally have outperformed their U.S. counterparts so far in 2008.
Emerging markets, benefiting from stronger economic growth rates, have done
particularly well. In fixed income markets, fears related to the economic
slowdown and related credit crisis have led to a prolonged flight to quality.
Investors have largely shunned bonds associated with the housing and credit
markets in favor of higher-quality government issues. The yield on 10-year
Treasury issues, which touched 5.30% in June 2007 (its highest level in five
years), fell to 4.04% by year-end and to 3.53% by the end of February, while
prices correspondingly rose.
After setting a new-issuance record in 2007, supply in the municipal bond market
has been on the decline for four consecutive months (measured year over year).
The market has struggled with concerns around the creditworthiness of monoline
bond insurers and the failure of auctions for auction rate securities, driving
yields higher and prices lower across the curve. By period-end, municipal bonds
were trading at higher yields than their Treasury counterparts, a very unusual
occurrence by historical standards.
Against this backdrop, the major benchmark indexes posted mixed results for the
current reporting period, generally reflecting heightened investor risk
aversion:
Total Returns as of February 29, 2008 6-month 12-month
================================================================================================================
U.S. equities (S&P 500 Index) - 8.79% - 3.60%
----------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) -12.91 -12.44
----------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) - 4.71 + 0.84
----------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) + 5.67 + 7.30
----------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) - 0.60 - 1.17
----------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) - 1.39 - 3.08
----------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
As you navigate today's volatile markets, we encourage you to review your
investment goals with your financial professional and to make portfolio changes,
as needed. For more up-to-date commentary on the economy and financial markets,
we invite you to visit www.blackrock.com/funds. As always, we thank you for
entrusting BlackRock with your investment assets, and we look forward to
continuing to serve you in the months and years ahead.
Sincerely,
/s/ Rob Kapito
Rob Kapito
President, BlackRock Advisors, LLC
3
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary as of February 29, 2008 (Unaudited)
Investment Objective
BlackRock MuniVest Fund, Inc. (MVF) seeks to provide shareholders with as high a
level of current income exempt from federal income taxes, as is consistent with
its investment policies and prudent investment management, by investing
primarily in a portfolio of long-term, investment grade municipal obligations,
the interest on which is exempt from federal income taxes in the opinion of bond
counsel to the issuer.
Performance
For the six months ended February 29, 2008, the Fund returned -3.87% based on
market price, with dividends reinvested. The Fund's return based on net asset
value ("NAV") was -4.61%, with dividends reinvested. For the same period, the
Lipper General Municipal Debt Funds (Leveraged) category posted an average
return of -6.37% on a NAV basis. The Fund's recent NAV performance reflected our
neutral duration position, above-average yield relative to our Lipper peers, and
underweighting in insured municipal bonds, a segment of the market that has
suffered as pressure on municipal bond insurers affected the entire insured
municipal marketplace.
Fund Information
Symbol on American Stock Exchange ................................. MVF
Initial Offering Date ............................................. September 29, 1988
Yield on Closing Market Price as of February 29, 2008 ($8.74)* .... 5.90%
Tax Equivalent Yield** ............................................ 9.08%
Current Monthly Distribution per share of Common Stock*** ......... $.043
Current Annualized Distribution per share of Common Stock*** ...... $.516
Leverage as of February 29, 2008**** .............................. 38%
------------------------------------------------------------------------------------------
* 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.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Stock
("Preferred Stock") that may be outstanding) minus the sum of accrued
liabilities (other than debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net asset
value per share:
--------------------------------------------------------------------------------
2/29/08 8/31/07 Change High Low
--------------------------------------------------------------------------------
Market Price ............ $8.74 $9.35 (6.52%) $10.02 $8.54
Net Asset Value ......... $8.71 $9.39 (7.24%) $ 9.63 $8.71
--------------------------------------------------------------------------------
The following charts show the Fund's portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 2/29/08 8/31/07
--------------------------------------------------------------------------------
Hospital ............................................... 24% 29%
Industrial & Pollution Control ......................... 15 16
Education .............................................. 9 9
Power .................................................. 9 8
City, County & State ................................... 8 8
Transportation ......................................... 8 6
Tax Revenue ............................................ 7 6
Tobacco ................................................ 7 6
Water & Sewer .......................................... 5 5
Housing ................................................ 4 3
Lease Revenue .......................................... 4 4
Credit Quality Allocations*
Credit Rating 2/29/08 8/31/07
--------------------------------------------------------------------------------
AAA/Aaa ................................................ 37% 33%
AA/Aa .................................................. 16 17
A/A .................................................... 25 28
BBB/Baa ................................................ 17 18
BB/Ba .................................................. 2 2
B/B .................................................... 1 1
Not Rated** ............................................ 2 1
--------------------------------------------------------------------------------
* Using the higher of Standard & Poor's or Moody's Investors Service
ratings.
** The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality. As of February 29, 2008, and August 31,
2007, the market value of these securities was $5,570,946 representing 1%
and $6,544,144 representing 1%, respectively, of the Fund's long-term
investments.
4 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
The Benefits and Risks of Leveraging
BlackRock MuniVest Fund, Inc. utilizes leveraging to seek to enhance the yield
and net asset value of its common stock ("Common Stock"). However, these
objectives cannot be achieved in all interest rate environments. To leverage,
the Fund issues preferred stock ("Preferred Stock"), which pays dividends at
prevailing short-term interest rates, and invests the proceeds in long-term
municipal bonds. The interest earned on these investments, net of dividends to
Preferred Stock, is paid to Common Stock shareholders in the form of dividends,
and the value of these portfolio holdings is reflected in the per share net
asset value of the Fund's Common Stock. However, in order to benefit Common
Stock shareholders, the yield curve must be positively sloped; that is,
short-term interest rates must be lower than long-term interest rates. At the
same time, a period of generally declining interest rates will benefit Common
Stock shareholders. If either of these conditions change, then the risks of
leveraging will begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Stock capitalization of
$100 million and the issuance of Preferred Stock for an additional $50 million,
creating a total value of $150 million available for investment in long-term
municipal bonds. If prevailing short-term interest rates are approximately 3%
and long-term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million of Preferred
Stock based on the lower short-term interest rates. At the same time, the fund's
total portfolio of $150 million earns the income based on long-term interest
rates. Of course, increases in short-term interest rates would reduce (and
possibly eliminate) the dividends on the Common Stock.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term investments,
and therefore the Common Stock shareholders are the beneficiaries of the
incremental yield. However, if short-term interest rates rise, narrowing the
differential between short-term and long-term interest rates, the incremental
yield pickup on the Common Stock will be reduced or eliminated completely. At
the same time, the market value of the fund's Common Stock (that is, its price
as listed on the American Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the Common Stock's net asset
value will reflect the full decline in the price of the portfolio's investments,
since the value of the fund's Preferred Stock does not fluctuate. In addition to
the decline in net asset value, the market value of the fund's Common Stock may
also decline.
As of February 29, 2008, the Fund's leverage amount, due to Preferred Stock, was
38% of managed assets before the deduction of Preferred Stock.
As a part of its investment strategy, the Fund may invest in certain securities
whose potential income return is inversely related to changes in a floating
interest rate ("inverse floaters"). In general, income on inverse floaters will
decrease when short-term interest rates increase and increase when short-term
interest rates decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of reduced or
eliminated interest payments and losses of invested principal. In addition,
inverse floaters have the effect of providing investment leverage and, as a
result, the market value of such securities will generally be more volatile than
that of fixed rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the net asset
value of the Fund's shares may also be more volatile than if the Fund did not
invest in these securities. See Note 1 of the Notes to Financial Statements for
details of municipal bonds transferred to tender option bond trusts.
Swap Agreements
The Fund may invest in swap agreements, which are over-the-counter contracts in
which one party agrees to make periodic payments based on the change in market
value of a specified bond, basket of bonds or index in return for periodic
payments based on a fixed or variable interest rate or the change in market
value of a different bond, basket of bonds or index. Swap agreements may be used
to obtain or reduce exposure to a bond or market without owning or taking
physical custody of securities. Swap agreements involve the risk that the party
with whom the Fund has entered into the swap will default on its obligation to
pay the Fund and the risk that the Fund will not be able to meet its obligations
to pay the other party to the agreement.
BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008 5
Schedule of Investments as of February 29, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
===============================================================================================
Alabama -- 3.0%
Camden, Alabama, IDB, Exempt Facilities Revenue
Bonds (Weyerhaeuser Company), Series A,
6.125% due 12/01/2024 $ 2,550 $ 2,554,105
Huntsville, Alabama, Health Care Authority Revenue
Bonds, Series A, 5.75% due 6/01/2011 (a) 3,500 3,791,305
Prattville, Alabama, IDB, Environmental Improvement
Revenue Bonds (International Paper Company
Projects), AMT, Series A, 4.75% due 12/01/2030 6,500 4,858,555
Selma, Alabama, IDB, Environmental Improvement
Revenue Refunding Bonds (International
Paper Company Project), Series B, 5.50%
due 5/01/2020 5,000 4,798,250
-------------
16,002,215
===============================================================================================
Arizona -- 2.2%
Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1),
Series A, 6.75% due 7/01/2029 4,100 3,606,893
Pima County, Arizona, IDA, Education Revenue Bonds
(Arizona Charter Schools Project):
Series E, 7.25% due 7/01/2031 2,055 2,098,998
Series I, 6.10% due 7/01/2024 500 476,570
Series I, 6.30% due 7/01/2031 1,000 947,380
Pima County, Arizona, IDA, Education Revenue
Refunding Bonds (Arizona Charter
Schools Project II), Series A:
6.75% due 7/01/2011 (a) 560 620,015
6.75% due 7/01/2021 940 951,609
Pima County, Arizona, IDA, Education Revenue
Refunding Bonds (Arizona Charter Schools
Project), Series O, 5% due 7/01/2026 1,545 1,269,913
Salt Verde Financial Corporation, Arizona, Senior
Gas Revenue Bonds, 5% due 12/01/2037 2,000 1,622,660
-------------
11,594,038
===============================================================================================
California -- 14.4%
California Health Facilities Financing Authority
Revenue Bonds (Kaiser Permanente), Series A,
5.25% due 4/01/2039 11,100 10,106,328
California State Public Works Board, Lease Revenue
Bonds (Department of Corrections), Series C:
5.50% due 6/01/2022 5,000 5,098,250
5.50% due 6/01/2023 6,000 6,093,960
California State Public Works Board, Lease Revenue
Bonds (Department of Mental Health -- Coalinga
State Hospital), Series A, 5.125% due 6/01/2029 11,075 10,307,945
California State, GO:
5.50% due 4/01/2014 (a) 550 606,034
5.50% due 4/01/2030 10 9,949
California State, Various Purpose, GO, 5.50%
due 11/01/2033 11,250 11,276,212
California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6% due 10/01/2023 5,240 5,366,284
Chula Vista, California, IDR (San Diego Gas and
Electric Company), AMT, Series B, 5%
due 12/01/2027 1,250 1,126,400
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds (a):
Series A-3, 7.875% due 6/01/2013 10,725 12,732,184
Series A-4, 7.80% due 6/01/2013 3,750 4,439,175
Series A-5, 7.875% due 6/01/2013 1,425 1,691,689
Series B, 5.375% due 6/01/2010 8,000 8,390,640
-------------
77,245,050
===============================================================================================
Colorado -- 0.6%
Colorado HFA, Revenue Refunding Bonds
(S/F Program), AMT, Senior Series A-2:
6.60% due 5/01/2028 540 557,842
7.50% due 4/01/2031 180 186,291
Colorado Health Facilities Authority Revenue Bonds
(Lutheran Medical Center), Series A, 5.25%
due 6/01/2034 3,000 2,682,360
-------------
3,426,493
===============================================================================================
Connecticut -- 0.5%
Mohegan Tribe Indians Gaming Authority, Connecticut,
Public Improvement Revenue Refunding Bonds
(Priority Distribution), 6.25% due 1/01/2031 2,810 2,627,434
===============================================================================================
Florida -- 7.6%
Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System):
ARS, VRDN, Series F, 8% due 11/15/2035 (b)(c) 3,000 3,000,000
Series C, 5.25% due 11/15/2036 18,300 16,875,162
Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (H. Lee Moffitt Cancer Center Project),
Series A, 5.25% due 7/01/2037 6,500 5,773,300
Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
5.625% due 11/15/2012 (a) 10,320 11,343,847
Sunshine State Governmental Finance Commission,
CP, 8% due 3/10/2008 4,000 4,000,000
-------------
40,992,309
===============================================================================================
Portfolio Abbreviations
To simplify the listings of BlackRock MuniVest Fund, Inc.'s portfolio holdings
in the Schedule of Investments, the names of many of the securities have been
abbreviated according to the list on the right.
AMT Alternative Minimum Tax (subject to)
ARS Auction Rate Security
CP Commercial Paper
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
S/F Single-Family
VRDN Variable Rate Demand Notes
See Notes to Financial Statements.
6 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
===============================================================================================
Georgia -- 5.1%
Gainesville, Georgia, Redevelopment Authority,
Educational Facilities Revenue Refunding Bonds
(Riverside Military Academy), 5.125%
due 3/01/2037 $ 1,100 $ 896,379
Georgia Municipal Electric Authority, Power
Revenue Refunding Bonds:
Series W, 6.60% due 1/01/2018 (g) 250 283,203
Series W, 6.60% due 1/01/2018 4,595 5,208,708
Series Y, 10% due 1/01/2010 (g) 250 280,968
Georgia State, GO, Series E, 5% due 8/01/2016 2,500 2,700,750
Houston County, Georgia, Hospital Authority
Revenue Bonds (Houston Heart Institute Project),
5.25% due 10/01/2035 5,000 4,572,300
Milledgeville-Baldwin County, Georgia, Development
Authority Revenue Bonds (Georgia College and
State University Foundation) (a):
5.50% due 9/01/2014 4,390 4,888,528
5.625% due 9/01/2014 3,000 3,362,220
Monroe County, Georgia, Development Authority,
PCR, Refunding (Oglethorpe Power Corporation --
Scherer), Series A, 6.80% due 1/01/2011 4,785 5,156,555
-------------
27,349,611
===============================================================================================
Idaho -- 0.5%
Idaho Housing Agency, S/F Mortgage Revenue
Refunding Bonds, AMT, Series E-2, 6.90%
due 1/01/2027 295 304,030
Idaho Housing and Financing Association,
S/F Mortgage Revenue Bonds, AMT, Series J-1,
Class III, 5% due 1/01/2028 2,380 2,266,188
-------------
2,570,218
===============================================================================================
Illinois -- 12.8%
Chicago, Illinois, O'Hare International Airport,
General Airport Revenue Refunding Bonds,
Third Lien, AMT, Series A, 5.75%
due 1/01/2019 (h) 5,000 5,080,300
Chicago, Illinois, O'Hare International Airport
Revenue Bonds, Third Lien, AMT, Series B-2, 6%
due 1/01/2029 (f) 11,200 11,308,528
Chicago, Illinois, S/F Mortgage Revenue Bonds,
AMT, Series C, 7% due 3/01/2032 (i)(j) 75 77,258
Hodgkins, Illinois, Environmental Improvement
Revenue Bonds (Metro Biosolids Management LLC
Project), AMT, 6% due 11/01/2023 10,000 9,889,000
Illinois Development Finance Authority Revenue
Bonds (Community Rehabilitation Providers
Facilities), Series A, 6.50% due 7/01/2022 2,140 2,211,562
Illinois Development Finance Authority, Revenue
Refunding Bonds (Community Rehabilitation
Providers Facilities), Series A, 6% due 7/01/2015 465 468,618
Illinois State Finance Authority, Revenue Bonds
(Community Rehabilitation Providers Facilities),
4.625% due 7/01/2027 2,695 2,211,167
Illinois State Finance Authority, Revenue Refunding
Bonds (Advocate Health and Hospital Corporation),
VRDN, Series B-3, 7.19% due 11/01/2038 (c)(k) 6,000 6,000,000
Kane and De Kalb Counties, Illinois, Community
Unit School District Number 302, GO, DRIVERS,
Series 283, 7.807% due 2/01/2018 (e)(l) 13 15,325
McLean and Woodford Counties, Illinois, Community
Unit School District Number 005, GO, Refunding (b):
6.25% due 12/01/2014 1,005 1,105,982
6.375% due 12/01/2016 845 934,224
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds
(McCormick Place Expansion Project), Series B,
5.75% due 6/15/2023 (h) 18,550 19,218,357
Regional Transportation Authority, Illinois,
Revenue Bonds:
Series A, 7.20% due 11/01/2020 (k) 3,500 4,115,090
Series C, 7.75% due 6/01/2020 (l) 4,000 4,966,640
Will County, Illinois, School District Number 122
(New Lenox Elementary), GO, Series A (b):
6.50% due 11/01/2010 (a) 395 426,948
6.50% due 11/01/2013 505 545,844
-------------
68,574,843
===============================================================================================
Indiana -- 6.8%
Indiana Health and Educational Facilities Financing
Authority, Hospital Revenue Bonds (Clarian Health
Obligation), Series A, 5.25% due 2/15/2040 11,300 10,027,846
Indiana Transportation Finance Authority, Highway
Bonds, Series A, 6.80% due 12/01/2016 8,195 9,392,371
Indianapolis, Indiana, Local Public Improvement
Bond Bank, Revenue Refunding Bonds, Series D,
6.75% due 2/01/2014 15,335 17,083,650
-------------
36,503,867
===============================================================================================
Iowa -- 1.1%
Iowa Financing Authority, S/F Mortgage Revenue
Refunding Bonds, AMT, Series E, 5.15%
due 7/01/2032 (j) 6,510 5,906,263
===============================================================================================
Kansas -- 0.7%
Sedgwick and Shawnee Counties, Kansas,
S/F Mortgage Revenue Bonds (Mortgage-Backed
Securities Program), AMT, Series A-4, 5.95%
due 12/01/2033 (j) 3,805 3,853,171
===============================================================================================
Kentucky -- 2.6%
Louisville and Jefferson County, Kentucky,
Metropolitan Government Health System,
Revenue Refunding Bonds (Norton Healthcare,
Inc.), 5.25% due 10/01/2036 (m) 15,900 14,120,154
===============================================================================================
Louisiana -- 4.4%
Louisiana Public Facilities Authority, Hospital
Revenue Bonds (Franciscan Missionaries of
Our Lady Health System, Inc.), Series A, 5%
due 8/15/2033 8,720 7,734,117
Louisiana Public Facilities Authority, Hospital
Revenue Bonds (Franciscan Missionaries of
Our Lady Health System, Inc.), Series A, 5.25%
due 8/15/2036 11,660 10,635,552
Louisiana HFA, S/F Mortgage Revenue Bonds
(Home Ownership Program), AMT, Series C-2,
5.20% due 6/01/2039 (i)(j) 6,000 5,426,880
-------------
23,796,549
===============================================================================================
See Notes to Financial Statements.
BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008 7
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
===============================================================================================
Maine -- 0.3%
Portland, Maine, Housing Development Corporation,
Senior Living Revenue Bonds (Avesta Housing
Development Corporation Project), Series A:
5.70% due 8/01/2021 $ 775 $ 739,319
6% due 2/01/2034 1,190 1,113,007
-------------
1,852,326
===============================================================================================
Maryland -- 1.0%
Maryland State Community Development
Administration, Department of Housing and
Community Development, Residential Revenue
Refunding Bonds, AMT, Series D, 4.90%
due 9/01/2042 3,250 2,773,225
Maryland State, GO (State and Local Facilities
Loan of 2003), First Series, 5.25% due 3/01/2016 2,500 2,740,425
-------------
5,513,650
===============================================================================================
Massachusetts -- 9.6%
Boston, Massachusetts, Water and Sewer
Commission Revenue Bonds, 9.25%
due 1/01/2011 (g) 2,035 2,310,600
Massachusetts Bay Transportation Authority,
Revenue Refunding Bonds (General Transportation
System), Series A, 7% due 3/01/2019 (s) 3,010 3,566,459
Massachusetts State, HFA, Housing Revenue Bonds,
AMT, Series A, 5.20% due 12/01/2037 3,000 2,749,950
Massachusetts State, HFA, Housing Revenue
Refunding Bonds, AMT, Series D, 4.85%
due 6/01/2040 3,000 2,536,320
Massachusetts State, HFA, S/F Housing Revenue
Bonds, AMT, Series 130, 5% due 12/01/2032 2,500 2,229,675
Massachusetts State Water Resource Authority
Revenue Bonds, Series A, 6.50%
due 7/15/2019 (g) 30,000 34,714,800
Massachusetts State Water Resource Authority,
Revenue Refunding Bonds, Series A, 6%
due 8/01/2010 (a)(l): 3,480 3,753,006
-------------
51,860,810
===============================================================================================
Michigan -- 5.4%
Delta County, Michigan, Economic Development
Corporation, Environmental Improvement Revenue
Refunding Bonds (Mead Westvaco-Escanaba),
Series A, 6.25% due 4/15/2012 (a) 2,500 2,758,750
Macomb County, Michigan, Hospital Finance
Authority, Hospital Revenue Bonds (Mount
Clemens General Hospital), Series B:
5.75% due 11/15/2025 3,715 3,387,597
5.875% due 11/15/2034 4,250 3,837,070
Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds:
(Crittenton Hospital), Series A, 5.625%
due 3/01/2027 1,900 1,887,935
(Oakwood Obligated Group), Series A, 5%
due 7/15/2025 2,000 1,857,160
Michigan State Hospital Finance Authority, Revenue
Refunding Bonds:
(Henry Ford Health System), Series A, 5.25%
due 11/15/2032 6,705 6,157,537
(Henry Ford Health System), Series A, 5.25%
due 11/15/2046 9,200 8,163,252
(Sinai Hospital), 6.70% due 1/01/2026 1,000 984,560
-------------
29,033,861
===============================================================================================
Minnesota -- 1.8%
Minneapolis, Minnesota, Health Care System
Revenue Bonds (Allina Health System), Series A,
5.75% due 11/15/2012 (a) 7,235 7,930,356
Saint Cloud, Minnesota, Health Care Revenue
Refunding Bonds (Saint Cloud Hospital Obligation
Group), Series A, 6.25% due 5/01/2017 (b) 1,405 1,502,367
-------------
9,432,723
===============================================================================================
Mississippi -- 6.5%
Lowndes County, Mississippi, Solid Waste
Disposal and PCR, Refunding (Weyerhaeuser
Company Project):
Series A, 6.80% due 4/01/2022 9,160 9,600,413
Series B, 6.70% due 4/01/2022 4,500 4,674,690
Mississippi Business Finance Corporation,
Mississippi, PCR, Refunding (System Energy
Resources Inc. Project), 5.875% due 4/01/2022 20,705 20,762,767
-------------
35,037,870
===============================================================================================
Missouri -- 0.5%
Missouri State Development Finance Board,
Infrastructure Facilities Revenue Refunding Bonds
(Branson), Series A, 5.50% due 12/01/2032 2,600 2,346,656
Missouri State Housing Development Commission,
S/F Mortgage Revenue Bonds (Homeowner Loan),
AMT, Series A, 7.50% due 3/01/2031 (j) 195 204,666
-------------
2,551,322
===============================================================================================
Montana -- 1.1%
Forsyth, Montana, PCR, Refunding (Portland General
Electric Company), Series A, 5.20%
due 5/01/2033 6,000 6,083,400
===============================================================================================
Nebraska -- 0.0%
Nebraska Investment Finance Authority, S/F Housing
Revenue Bonds, AMT, Series C, 6.30%
due 9/01/2028 (i)(j) 10 10,119
===============================================================================================
New Hampshire -- 0.5%
New Hampshire Health and Education Facilities
Authority, Revenue Refunding Bonds (Elliot Hospital),
Series B, 5.60% due 10/01/2022 2,675 2,682,463
===============================================================================================
See Notes to Financial Statements.
8 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
===============================================================================================
New Jersey -- 5.3%
New Jersey EDA, Cigarette Tax Revenue Bonds:
5.50% due 6/15/2024 $ 9,080 $ 8,477,088
5.75% due 6/15/2029 2,885 2,696,840
5.50% due 6/15/2031 2,855 2,558,451
5.75% due 6/15/2034 8,695 7,979,488
Tobacco Settlement Financing Corporation of
New Jersey, Asset-Backed Revenue Bonds, 7%
due 6/01/2013 (a) 5,980 6,970,766
-------------
28,682,633
===============================================================================================
New York -- 0.8%
New York City, New York, City Transitional Finance
Authority Revenue Bonds, RIB, Series 283, 9.08%
due 11/15/2015 (e) 1,125 1,305,045
New York City, New York, GO, Refunding, Series A,
6.375% due 5/15/2014 (l) 965 1,033,370
New York City, New York, GO, Series F, 5.25%
due 1/15/2033 1,980 1,942,142
New York State Local Government Assistance
Corporation, Revenue Refunding Bonds, Sub-Lien,
VRDN, Series 4V, 3.10% due 4/01/2022 (b)(c) 400 400,000
-------------
4,680,557
===============================================================================================
North Carolina -- 1.2%
Gaston County, North Carolina, Industrial Facilities
and Pollution Control Financing Authority, Revenue
Bonds (National Gypsum Company Project), AMT,
5.75% due 8/01/2035 4,105 3,529,027
Mecklenburg County, North Carolina, GO, Series B,
5% due 2/01/2016 2,500 2,696,925
-------------
6,225,952
===============================================================================================
Ohio -- 5.5%
Buckeye Tobacco Settlement Financing Authority,
Ohio, Tobacco Settlement Asset-Backed Bonds,
Series A-2, 6.50% due 6/01/2047 27,500 27,074,300
Ohio State, Higher Education, GO, Series B, 5%
due 11/01/2014 2,500 2,701,225
-------------
29,775,525
===============================================================================================
Pennsylvania -- 4.5%
Pennsylvania State Higher Education Assistance
Agency Revenue Bonds, Capital Acquisition,
6.125% due 12/15/2010 (a)(h) 2,440 2,644,984
Pennsylvania State Higher Educational Facilities
Authority Revenue Bonds (University of
Pennsylvania Medical Center Health System),
Series A, 6% due 1/15/2031 6,250 6,544,938
Philadelphia, Pennsylvania, Authority for Industrial
Development, Senior Living Revenue Bonds:
(Arbor House Inc. Project), Series E, 6.10%
due 7/01/2033 1,000 950,290
(Rieder House Project), Series A, 6.10%
due 7/01/2033 1,355 1,287,643
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Bonds (Guthrie Healthcare System),
Series B, 7.125% due 12/01/2011 (a) 9,280 11,110,944
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare
System), Series A:
6.25% due 12/01/2011 (a) 1,340 1,487,802
6.25% due 12/01/2018 410 428,143
-------------
24,454,744
===============================================================================================
South Carolina -- 1.1%
Georgetown County, South Carolina, Environmental
Improvement Revenue Refunding Bonds
(International Paper Company Project), AMT,
Series A, 5.55% due 12/01/2029 1,000 873,910
Richland County, South Carolina, Environmental
Improvement Revenue Refunding Bonds
(International Paper), AMT, 6.10% due 4/01/2023 5,000 4,887,000
-------------
5,760,910
===============================================================================================
South Dakota -- 0.4%
South Dakota State Health and Educational
Facilities Authority Revenue Bonds (Sanford Health),
5% due 11/01/2040 2,605 2,254,445
===============================================================================================
Tennessee -- 1.2%
Shelby County, Tennessee, Health, Educational and
Facility Board, Hospital Revenue Refunding Bonds
(Methodist Healthcare), 6.50% due 9/01/2012 (a) 4,120 4,656,177
Tennessee Energy Acquisition Corporation, Gas
Revenue Bonds, Series A, 5.25% due 9/01/2026 1,750 1,572,025
-------------
6,228,202
===============================================================================================
Texas -- 16.3%
Austin, Texas, Convention Center Revenue Bonds
(Convention Enterprises Inc.), First Tier, Series A,
6.70% due 1/01/2011 (a) 6,290 6,864,654
Brazos River, Texas, Harbor Navigation District,
Brazoria County Environmental Revenue Refunding
Bonds (Dow Chemical Company Project), AMT,
Series A-7, 6.625% due 5/15/2033 11,460 11,670,635
Brazos River Authority, Texas, PCR, Refunding
(TXU Energy Company LLC Project), AMT, Series A,
7.70% due 4/01/2033 3,055 3,061,996
Gregg County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Good
Shepherd Medical Center Project), 6.875%
due 10/01/2010 (a)(n) 3,000 3,315,570
Guadalupe-Blanco River Authority, Texas, Sewage
and Solid Waste Disposal Facility Revenue Bonds
(E. I. du Pont de Nemours and Company Project),
AMT, 6.40% due 4/01/2026 10,250 10,263,633
Gulf Coast Waste Disposal Authority, Texas, Revenue
Refunding Bonds (International Paper Company),
AMT, Series A, 6.10% due 8/01/2024 6,000 5,771,220
Harris County-Houston Sports Authority, Texas,
Revenue Refunding Bonds, Senior Lien, Series G,
5.75% due 11/15/2020 (h) 5,500 5,602,850
Houston, Texas, Industrial Development Corporation
Revenue Bonds (Air Cargo), AMT, 6.375%
due 1/01/2023 1,790 1,754,540
Mansfield, Texas, Independent School District, GO,
Refunding, 6.625% due 2/15/2015 155 164,949
Matagorda County, Texas, Navigation District
Number 1, Revenue Refunding Bonds (Centerpoint
Energy Project), 5.60% due 3/01/2027 9,355 8,723,444
Midway, Texas, Independent School District, GO,
Refunding, 6.125% due 8/15/2014 5,225 5,571,104
See Notes to Financial Statements.
BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008 9
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
===============================================================================================
Texas (concluded)
Port Corpus Christi, Texas, Revenue Refunding
Bonds (Celanese Project), Series A, 6.45%
due 11/01/2030 $ 2,700 $ 2,440,233
Red River Authority, Texas, PCR, Refunding
(Celanese Project), AMT, Series B, 6.70%
due 11/01/2030 5,000 4,579,100
San Antonio, Texas, Electric and Gas Revenue Bonds,
Series A, 5.75% due 2/01/2010 (a): 12,500 13,164,125
Texas State Department of Housing and Community
Affairs, S/F Mortgage Revenue Bonds, AMT,
Series B, 5.25% due 9/01/2032 (i)(j) 5,000 4,575,600
-------------
87,523,653
===============================================================================================
Vermont -- 0.2%
Vermont Educational and Health Buildings Financing
Agency, Developmental and Mental Health
Revenue Bonds (Howard Center for Human
Services), Series A, 6.375% due 6/15/2022 1,000 1,017,480
===============================================================================================
Virginia -- 1.3%
Chesterfield County, Virginia, IDA, PCR (Virginia
Electric and Power Company), Series A, 5.875%
due 6/01/2017 1,425 1,484,195
Fairfax County, Virginia, EDA, Residential Care
Facilities, Mortgage Revenue Refunding Bonds
(Goodwin House, Inc.), 5.125% due 10/01/2037 2,000 1,693,440
Virginia State, GO, Series B, 5% due 6/01/2017 3,525 3,786,485
-------------
6,964,120
===============================================================================================
Washington -- 6.6%
Central Puget Sound Regional Transportation
Authority, Washington, Sales and Use Tax Revenue
Bonds, Series A, 5% due 11/01/2036 6,000 5,668,260
Energy Northwest, Washington, Electric Revenue
Refunding Bonds, DRIVERS, Series 255, 7.68%
due 7/01/2018 (e)(k) 3 2,892
Seattle, Washington, Housing Authority Revenue
Bonds (Replacement Housing Project), 6.125%
due 12/01/2032 2,355 2,221,919
Washington State Public Power Supply System,
Revenue Refunding Bonds (Nuclear Project
Number 1), Series B, 7.125% due 7/01/2016 14,320 17,307,295
Washington State, GO, Series B, 6%
due 1/01/2010 (a)(b) 9,690 10,225,469
-------------
35,425,835
===============================================================================================
Wisconsin -- 1.8%
Milwaukee, Wisconsin, Revenue Bonds (Air Cargo),
AMT, 6.50% due 1/01/2025 1,755 1,739,749
Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (SynergyHealth Inc.),
6% due 11/15/2032 3,040 2,829,267
Wisconsin State Health and Educational Facilities
Authority, Mortgage Revenue Bonds (Hudson
Memorial Hospital), 5.70% due 1/15/2029 (o) 5,000 5,046,200
-------------
9,615,216
===============================================================================================
U.S. Virgin Islands -- 1.5%
Virgin Islands Government Refinery Facilities,
Revenue Refunding Bonds (Hovensa Coker Project),
AMT, 6.50% due 7/01/2021 8,000 8,061,680
===============================================================================================
Total Municipal Bonds (Cost -- $738,272,671) -- 136.7% 735,291,711
===============================================================================================
===============================================================================================
Municipal Bonds Transferred to
Tender Option Bond Trusts (p)
===============================================================================================
Florida -- 1.6%
Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds, AMT, Series 2586Z, 6.552%
due 10/01/2015 (d)(e)(f) 10,000 8,693,819
===============================================================================================
Illinois -- 8.0%
Chicago, Illinois, O'Hare International Airport,
General Airport Revenue Refunding Bonds,
Third Lien, AMT, Series A, 5.75% due 1/01/2020 (h) 14,000 14,152,180
Chicago, Illinois, O'Hare International Airport
Revenue Bonds, Third Lien, AMT, Series B-2, 6%
due 1/01/2027 (h) 17,080 17,270,784
Kane and De Kalb Counties, Illinois, Community
Unit School District Number 302, GO (l)
5.75% due 2/01/2018 2,975 3,311,145
5.75% due 2/01/2019 2,710 3,016,203
5.75% due 2/01/2021 4,780 5,320,092
-------------
43,070,404
===============================================================================================
Massachusetts -- 3.6%
Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A,
5% due 8/15/2030 (b) 20,000 19,242,400
===============================================================================================
New York -- 8.1%
New York City, New York, City Transitional Finance
Authority Revenue Bonds, Future Tax Secured,
Series B, 6.25% due 11/15/2018 13,500 14,580,270
New York State Dormitory Authority, State University
Educational Facilities, Revenue Refunding Bonds,
Series 1989, 6% due 5/15/2010 (a)(h) 26,750 28,748,225
-------------
43,328,495
===============================================================================================
Oregon -- 1.3%
Portland, Oregon, Sewer System Revenue Bonds,
Series A, 5.75% due 8/01/2010 (a)(l) 6,610 7,041,501
===============================================================================================
Texas -- 4.2%
Harris County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds (School
Health Care System), Series B, 5.75%
due 7/01/2027 (g) 20,970 22,652,842
===============================================================================================
See Notes to Financial Statements.
10 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
Schedule of Investments (concluded) (Percentages shown are based on Net Assets)
Municipal Bonds Transferred to Par
Tender Option Bond Trusts (p) (000) Value
===============================================================================================
Washington -- 6.7%
Energy Northwest, Washington, Electric Revenue
Refunding Bonds:
(Columbia Generating Station), Series A,
5.75% due 7/01/2018 (h) $ 11,660 $ 12,412,187
(Columbia Generating Station), Series B,
6% due 7/01/2018 (k) 7,015 7,565,467
(Project Number 1), Series B, 6%
due 7/01/2017 (h) 14,700 15,972,285
-------------
35,949,939
-----------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to Tender Option
Bond Trusts (Cost -- $181,618,318) -- 33.5 % 179,979,400
===============================================================================================
===============================================================================================
Shares
Short-Term Securities (000) Value
===============================================================================================
Merrill Lynch Institutional Tax-Exempt Fund,
3.03% (q)(r) 36,741 36,740,624
-----------------------------------------------------------------------------------------------
Total Short-Term Securities (Cost -- $36,740,624) -- 6.8% 36,740,624
===============================================================================================
Total Investments (Cost -- $956,631,613*) -- 177.0% 952,011,735
Other Assets Less Liabilities -- 1.7% 9,289,308
Liability for Trust Certificates, Including Interest
Expense Payable -- (16.5%) (89,013,594)
Preferred Stock, at Redemption Value -- (62.2%) (334,381,099)
-------------
Net Assets Applicable to Common Stock -- 100.0% $ 537,906,350
=============
* The cost and unrealized appreciation (depreciation) of investments as of
February 29, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 870,800,009
=============
Gross unrealized appreciation $ 27,231,794
Gross unrealized depreciation (34,526,751)
-------------
Net unrealized depreciation $ (7,294,957)
=============
(a) U.S. government securities, held in escrow, are used to pay interest on
this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.
(b) FSA Insured.
(c) Variable rate security. Rate shown is the interest rate as of report date.
(d) Assured Guaranty Insured.
(e) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(f) XL Capital Insured.
(g) Security is collateralized by Municipal or U.S. Treasury obligations.
(h) MBIA Insured.
(i) FHLMC Collateralized.
(j) FNMA/GNMA Collateralized.
(k) AMBAC Insured.
(l) FGIC Insured.
(m) Represents a pay-in-kind security which may pay interest/dividends in
additional face/shares.
(n) Radian Insured.
(o) FHA Insured.
(p) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of
the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(q) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net
Activity Dividend
Affiliate (000) Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund 28,818 $158,536
--------------------------------------------------------------------------
(r) Represents the current yield as of report date.
(s) Commonwealth guaranteed.
o Forward interest rate swaps outstanding as of February 29, 2008 were as
follows:
--------------------------------------------------------------------------
Notional
Amount Unrealized
(000) Depreciation
--------------------------------------------------------------------------
Pay a fixed rate of 4.955% and receive
a floating rate based on 3-month USD LIBOR
Broker, JPMorgan Chase
Expires June 2028 $12,000 $(272,964)
--------------------------------------------------------------------------
See Notes to Financial Statements.
BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008 11
Statement of Assets and Liabilities
As of February 29, 2008 (Unaudited)
===============================================================================
Assets
-------------------------------------------------------------------------------
Investments at value -- unaffiliated
(identified cost -- $919,890,989) ............................ $915,271,111
Investments at value -- affiliated
(identified cost -- $36,740,624) ............................. 36,740,624
Cash ........................................................... 18,380
Interest receivable ............................................ 13,215,911
Investments sold receivable .................................... 6,995,281
Swaps receivable ............................................... 29,678
Prepaid expenses and other assets .............................. 18,806
------------
Total assets ................................................... 972,289,791
------------
===============================================================================
Liabilities
-------------------------------------------------------------------------------
Trust certificates 1 ........................................... 88,513,610
Unrealized depreciation on forward interest rate swaps ......... 272,964
Investments purchased payable .................................. 7,516,259
Income dividends payable ....................................... 2,656,862
Interest expense and fees payable .............................. 499,984
Investment advisory fees payable ............................... 382,163
Directors' fees payable ........................................ 7,317
Other affiliates payable ....................................... 6,707
Other accrued expenses payable ................................. 146,476
------------
Total liabilities .............................................. 100,002,342
------------
===============================================================================
Preferred Stock
-------------------------------------------------------------------------------
Preferred Stock, at redemption value, par value $.025 per share;
10,000,000 shares authorized (2,000 Series A Shares, 2,000
Series B Shares, 2,000 Series C Shares, 2,000 Series D Shares,
3,000 Series E Shares) and $.10 per share (2,360 Series F
Shares), issued and outstanding at $25,000 per share
liquidation preference ....................................... 334,381,099
------------
===============================================================================
Net Assets Applicable to Common Stock
-------------------------------------------------------------------------------
Net assets applicable to Common Stock .......................... $537,906,350
------------
===============================================================================
Net Assets Applicable to Common Stock Shareholders Consist of
-------------------------------------------------------------------------------
Common Stock, par value $.10 per share; 150,000,000 shares
authorized (61,787,499 shares issued and outstanding) ........ $ 6,178,750
Paid-in capital in excess of par ............................... 568,736,460
Undistributed net investment income ............................ 3,769,032
Accumulated net realized loss .................................. (35,885,050)
Net unrealized depreciation .................................... (4,892,842)
------------
Net Assets, $8.71 net asset value per share of Common Stock .... $537,906,350
============
1 Represents short-term floating rate certificates issued by tender option
bond trusts.
Statement of Operations
For the Six Months Ended February 29, 2008 (Unaudited)
===============================================================================
Investment Income
-------------------------------------------------------------------------------
Interest (including $158,536 from affiliates) .................. $ 25,539,042
Dividends from affiliates ...................................... 158,536
------------
Total income ................................................... 25,697,578
------------
===============================================================================
Expenses
-------------------------------------------------------------------------------
Investment advisory ............................................ $ 2,268,103
Interest expense and fees 1 .................................... 1,697,694
Commissions for Preferred Stock ................................ 432,545
Accounting services ............................................ 133,897
Transfer agent ................................................. 84,425
Professional fees .............................................. 31,276
Printing ....................................................... 28,995
Custodian ...................................................... 23,585
Directors ...................................................... 13,051
Registration ................................................... 7,524
Miscellaneous .................................................. 61,197
------------
Total expenses before waiver ................................... 4,782,292
Less fees waived by advisor .................................... (10,199)
------------
Total expenses after reimbursement ............................. 4,772,093
------------
Net investment income .......................................... 20,925,485
------------
===============================================================================
Realized and Unrealized Gain (Loss)
-------------------------------------------------------------------------------
Net realized loss from:
Investments .................................................. (3,700,268)
Forward interest rate swaps .................................. (2,912,351)
------------
(6,612,619)
------------
Net change in unrealized appreciation/depreciation on:
Investments .................................................. (35,278,337)
Forward interest rate swaps .................................. 1,052,198
------------
(34,226,139)
------------
Total realized and unrealized loss ............................. (40,838,758)
------------
===============================================================================
Dividends to Preferred Stock Shareholders from
-------------------------------------------------------------------------------
Net investment income .......................................... (6,302,003)
------------
Net Decrease in Net Assets to Common Stock Shareholders
Resulting from Operations .................................... $(26,215,276)
============
1 Related to tender option bond trusts.
See Notes to Financial Statements.
12 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
Statements of Changes in Net Assets
For the Six
Months Ended For the
February 29, Year Ended
2008 August 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
===================================================================================================================================
Operations
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income .......................................................................... $ 20,925,485 $ 44,776,577
Net realized gain (loss) ....................................................................... (6,612,619) 2,026,324
Net change in unrealized depreciation .......................................................... (34,226,139) (35,772,119)
Dividends to Preferred Stock shareholders from net investment income ........................... (6,302,003) (12,083,580)
-------------------------------
Net decrease in net assets applicable to Common Stock shareholders resulting from operations ... (26,215,276) (1,052,798)
-------------------------------
===================================================================================================================================
Dividends to Common Stock Shareholders from
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income .......................................................................... (15,930,643) (32,123,465)
-------------------------------
===================================================================================================================================
Capital Stock Transactions
-----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets resulting from reinvestment of common dividends ......................... 973,681 2,642,853
-------------------------------
===================================================================================================================================
Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets applicable to Common Stock ........................................ (41,172,238) (30,533,410)
Beginning of period ............................................................................ 579,078,588 609,611,998
-------------------------------
End of period .................................................................................. $ 537,906,350 $ 579,078,588
===============================
End of period undistributed net investment income .............................................. $ 3,769,032 $ 5,076,193
===============================
See Notes to Financial Statements.
BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008 13
Financial Highlights
For the Six
Months Ended
February 29, For the Year Ended August 31,
2008 --------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ........................ $ 9.39 $ 9.93 $ 10.23 $ 9.91 $ 9.54 $ 9.76
--------------------------------------------------------------------
Net investment income 1 ..................................... .34 .73 .70 .74 .72 .72
Net realized and unrealized gain (loss) ..................... (.66) (.55) (.23) .35 .36 (.26)
Dividends to Preferred Stock shareholders
from net investment income ................................ (.10) (.20) (.17) (.10) (.04) (.05)
--------------------------------------------------------------------
Net increase (decrease) from investment operations .......... (.42) (.02) .30 .99 1.04 .41
--------------------------------------------------------------------
Dividends to Common Stock shareholders from
net investment income ..................................... (.26) (.52) (.60) (.67) (.66) (.63)
--------------------------------------------------------------------
Capital charges with respect to issuance of
Preferred Stock ........................................... -- -- -- -- 2 (.01) --
--------------------------------------------------------------------
Net asset value, end of period .............................. $ 8.71 $ 9.39 $ 9.93 $ 10.23 $ 9.91 $ 9.54
--------------------------------------------------------------------
Market price, end of period ................................. $ 8.74 $ 9.35 $ 9.66 $ 10.15 $ 9.30 $ 8.80
====================================================================
===================================================================================================================================
Total Investment Return 3
-----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .................................... (4.61%) 4 (.30%) 3.27% 10.64% 11.60% 4.79%
====================================================================
Based on market price ....................................... (3.87%) 4 2.05% 1.26% 16.97% 13.53% 3.56%
====================================================================
===================================================================================================================================
Ratios Based on Average Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of reimbursement and excluding
interest expense and fees 5,6 ............................. 1.06 7 1.02% 1.04% 1.02% .94% .95%
====================================================================
Total expenses, net of reimbursement 5 ...................... 1.65 7 1.66% 1.60% 1.45% 1.23% 1.24%
====================================================================
Total expenses5 ............................................. 1.65 7 1.66% 1.60% 1.45% 1.23% 1.24%
====================================================================
Net investment income 5 ..................................... 7.23 7 7.33% 7.11% 7.38% 7.37% 7.33%
====================================================================
Dividends to Preferred Stock shareholders ................... 2.18 7 1.98% 1.72% 1.02% .43% .50%
====================================================================
Net investment income to Common Stock shareholders .......... 5.05 7 5.35% 5.39% 6.36% 6.94% 6.83%
====================================================================
===================================================================================================================================
Supplemental Data
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end of
period (in thousands) ..................................... $537,906 $579,079 $609,612 $627,562 $607,842 $585,022
====================================================================
Preferred Stock outstanding at liquidation preference,
end of period (in thousands) .............................. $334,000 $334,000 $334,000 $334,000 $334,000 $275,000
====================================================================
Portfolio turnover .......................................... 23% 39% 56% 49% 40% 38%
====================================================================
Asset coverage per $1,000 ................................... $ 2,610 $ 2,734 $ 2,825 $ 2,879 $ 2,820 $ 3,127
====================================================================
1 Based on average shares outstanding.
2 Amount is less than $(.01) per share.
3 Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
4 Aggregate total investment return.
5 Does not reflect the effect of dividends to Preferred Stock shareholders.
6 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
7 Annualized.
See Notes to Financial Statements.
14 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock MuniVest Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a non-diversified,
closed-end management investment company. The Fund's financial statements are
prepared in conformity with accounting principles generally accepted in the
United States of America, which may require the use of management accruals and
estimates. The Fund determines and makes available for publication the net asset
value of its Common Stock on a daily basis.
The following is a summary of significant accounting policies followed by the
Fund:
Valuation of Investments: Municipal investments (including commitments to
purchase such investments on a "when-issued" basis) are valued on the basis of
prices provided by dealers or pricing services selected under the supervision of
the Fund's Board of Directors (the "Board"). In determining the value of a
particular investment, pricing services may use certain information with respect
to transactions in such investments, quotations from bond dealers, market
transactions in comparable investments and various relationships between
investments. Swap agreements are valued by quoted fair values received daily by
the Fund's pricing service. Short-term securities may be valued at amortized
cost. Investments in open-end investment companies are valued at net asset value
each business day.
In the event that application of these methods of valuation results in a price
for an investment which is deemed not to be representative of the market value
of such investment, the investment will be valued by, under the direction of, or
in accordance with, a method approved by the Board as reflecting fair value
("Fair Value Assets"). When determining the price for Fair Value Assets,
BlackRock Advisors, LLC (the "Advisor"), an indirect, wholly owned subsidiary of
BlackRock, Inc. and/or the sub-advisor seeks to determine the price that the
Fund might reasonably expect to receive from the current sale of that asset in
an arm's-length transaction. Fair value determinations shall be based upon all
available factors that the Advisor and/or sub-advisor deems relevant. The
pricing of all Fair Value Assets is subsequently reported to the Board or a
committee thereof.
Derivative Financial Instruments: The Fund may engage in various portfolio
investment strategies to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise if the value of the contract decreases due to an
unfavorable change in the price of the underlying security, or if the
counterparty does not perform under the contract.
o Forward interest rate swaps -- The Fund may enter into forward interest
rate swaps, which are over-the-counter ("OTC") contracts. In a forward
interest rate swap, the Fund and the counter-party agree to make periodic
net payments on a specified notional contract amount, commencing on a
specified future effective date, unless terminated earlier. These periodic
payments received or made by the Fund are recorded in the accompanying
Statement of Operations as realized gains or losses, respectively. Gains
or losses are also realized upon termination of the swap agreements. Swaps
are marked-to-market daily and changes in value are recorded as unrealized
appreciation (depreciation). Risks include changes in the returns of the
underlying instruments, failure of the counterparties to perform under the
contracts' terms and the possible lack of liquidity with respect to the
swap agreements. The Fund generally intends to close each forward interest
rate swap before the accrual date specified in the agreement and therefore
avoid entering into the interest rate swap underlying each forward
interest rate swap.
The Fund may utilize forward starting swaps for the purpose of reducing
the interest rate sensitivity of the portfolio and decreasing the Fund's
exposure to interest rate risk.
Municipal Bonds Transferred to Tender Option Bond Trusts: The Fund invests in
leveraged residual certificates ("TOB Residuals") issued by tender option bond
trusts ("TOBs"). A TOB is a special purpose entity established by a third party
sponsor into which the Fund, or an agent on behalf of the Fund, transfers
municipal securities. A TOB typically issues two classes of beneficial
interests: short-term floating rate certificates, which are sold to third party
investors, and residual certificates, which are generally issued to the Fund
which made the transfer or to affiliates of the Fund. The Fund's transfer of the
municipal securities to a TOB is accounted for as a financing transaction,
therefore the municipal securities deposited into a TOB are presented in the
Fund's Schedule of Investments and the proceeds from the transaction are
reported as a liability for trust certificates of the Fund. Similarly, proceeds
from residual certificates issued to affiliates, if any, from the transaction
are included in the liability for trust certificates. Interest income from the
underlying security is recorded by the Fund on an accrual basis. Interest
expense incurred on the secured borrowing and other expenses related to
remarketing, administration and trustee services to a TOB are reported as
expenses of the Fund. The floating rate certificates have interest rates that
generally reset weekly and their holders have the option to tender certificates
to the TOB for redemption at par at each reset date. The residual interest held
by the Fund include the right of the Fund (1) to cause the holders of a
proportional share of the floating rate certificates to tender their
certificates at par, and (2) to transfer a corresponding share of the municipal
securities from the TOB to the Fund. At February 29, 2008, the aggregate value
of the underlying municipal securities transferred to TOBs was $179,979,400, the
related liability for trust certificates was $88,513,610 and the range of
interest rates on the liability for trust certificates was 2.94% to 3.435%.
Financial transactions executed through TOBs generally will underperform the
market for fixed rate municipal bonds in a rising interest rate environment, but
tend to outperform the market for fixed rate bonds when interest rates decline
or remain relatively stable. Should short-term interest rates rise, the Fund's
investment in TOB Residuals likely will adversely affect the
BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008 15
Notes to Financial Statements (continued)
Fund's net investment income and dividends to shareholders. Fluctuations in the
market value of municipal securities deposited into the TOB may adversely affect
the Fund's net asset value per share.
While the Fund's investment policies and restrictions expressly permit
investments in inverse floating rate securities such as TOB Residuals, they
generally do not allow the Fund to borrow money for purposes of making
investments. The Fund's Advisor believes that the Fund's restrictions on
borrowings do not apply to the liability for trust certificates reflected as a
result of the Fund's investment in TOB Residuals.
Income Taxes: It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no provision for federal income tax is required.
Effective February 29, 2008, the Fund implemented Financial Accounting Standards
Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income
Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48
prescribes the minimum recognition threshold a tax position must meet in
connection with accounting for uncertainties in income tax positions taken or
expected to be taken by an entity, including investment companies, before being
measured and recognized in the financial statements. The Advisor has evaluated
the application of FIN 48 to the Fund, and has determined that the adoption of
FIN 48 does not have a material impact on the Fund's financial statements. The
Fund files U.S. federal and various state and local tax returns. No income tax
returns are currently under examination. The statute of limitations on the
Fund's U.S. federal tax returns remains open for the years ended August 31, 2004
through August 31, 2006. The statutes of limitations on the Fund's state and
local tax returns may remain open for an additional year depending upon the
jurisdiction.
Investment Transactions and Investment Income: Investment transactions are
recorded on the dates the transactions are entered into (i.e., the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis. The Fund amortizes all
premiums and discounts on debt securities.
Dividends and Distributions: Dividends to Common Stock shareholders from net
investment income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates. Dividends and distributions to Preferred
Stock shareholders are accrued and determined as described in Note 4.
Recent Accounting Pronouncements: In September 2006, Statement of Financial
Accounting Standards No.157, "Fair Value Measurements" ("FAS 157"), was issued
and is effective for fiscal years beginning after November 15, 2007. FAS 157
defines fair value, establishes a framework for measuring fair value and expands
disclosures about fair value measurements. The impact on the Fund's financial
statement disclosures, if any, is currently being assessed.
In addition, in February 2007, Statement of Financial Accounting Standards
No.159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. The impact on the Fund's financial
statement disclosures, if any, is currently being assessed.
Segregation: In cases in which the 1940 Act and the interpretive positions of
the Securities and Exchange Commission ("SEC") require that the Fund segregate
assets in connection with certain investments (e.g., swaps and when-issued
securities), the Fund will, consistent with certain interpretive letters issued
by the SEC, designate on its books and records cash or other liquid debt
securities having a market value at least equal to the amount that would
otherwise be required to be physically segregated.
Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan:
Under the deferred compensation plan approved by the Fund's Board,
non-interested Directors ("Independent Directors") defer a portion of their
annual complex-wide compensation. Deferred amounts earn an approximate return as
though equivalent dollar amounts had been invested in common shares of the other
BlackRock Closed-End Funds selected by the Independent Directors. This has
approximately the same economic effect for the Independent Directors as if the
Independent Directors had invested the deferred amounts directly in other
certain BlackRock Closed-End Funds. The deferred compensation, if any, is
included in other assets in the Statement of Assets and Liabilities.
The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Fund. The
Fund may, however, elect to invest in common shares of other certain BlackRock
Closed-End Funds selected by the Independent Directors in order to match its
deferred compensation obligations.
Other: Expenses that are directly related to one of the funds are charged to
that fund. Other operating expenses are pro-rated to certain funds on the basis
of relative net assets of all of the Closed-End Funds.
16 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
Notes to Financial Statements (continued)
2. Investment Advisory Agreement and Other Transactions with Affiliates:
The Fund entered into an Investment Advisory Agreement with the Advisor, to
provide investment advisory and administration services. Merrill Lynch & Co.,
Inc. ("Merrill Lynch") and The PNC Financial Services Group, Inc. are principal
owners of BlackRock, Inc.
The Advisor is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Fund. For such services, the Fund
pays the Advisor a monthly fee at an annual rate of 0.50% of the average daily
value of the Fund's net assets, including proceeds from the issuance of
Preferred Stock.
The Advisor has agreed to waive its advisory fees by the amount of investment
advisory fees the Fund pays to the Advisor indirectly through its investment in
affiliated money market funds. This amount is shown on the Statement of
Operations as fees waived by advisor.
In addition, the Advisor has entered into a separate sub-advisory agreement with
BlackRock Investment Management, LLC ("BIM"), an affiliate of the Advisor, under
which the Advisor pays BIM for services it provides, a monthly fee at an annual
rate that is a percentage of the investment advisory fee paid by the Fund to the
Advisor. For the six months ended February 29, 2008, the Fund reimbursed the
Advisor $8,458 for certain accounting services, which are included in accounting
services expenses in the Statement of Operations.
Certain officers and/or directors of the Fund are officers and/or directors of
BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended February 29, 2008 were $226,341,309 and $266,667,219, respectively.
4. Capital Stock Transactions:
Common Stock
The Fund is authorized to issue 150,000,000 shares of capital stock, par value
$0.10 per share all of which were initially classified as Common Stock. The
Board is authorized, however, to classify and reclassify any unissued shares of
capital stock without approval of the holders of Common Stock.
Shares issued and outstanding for the six months ended February 29, 2008 and
year ended August 31, 2007 increased by 101,978 and 267,589, respectively, as a
result of dividend reinvestments.
Preferred Stock
Preferred Stock of the Fund has a par value of $0.025 per share for Series A, B,
C, D and E and a par value of $0.10 per share for Series F and a liquidation
preference of $25,000 per share, plus accrued and unpaid dividends. Preferred
Stock shareholders receive cash dividends at an annual rate that may vary for
the successive dividend periods for each series. The Fund is authorized to issue
10,000,000 shares of Preferred Stock. The yields in effect at February 29, 2008
were as follows: Series A, 3.20%; Series B, 3.205%; Series C, 3.217%; Series D,
3.00%; Series E, 3.172%; and Series F, 4.922%.
The Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate ranging from 0.25% to 0.375% calculated on the proceeds of
each auction. For the six months ended February 29, 2008, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, earned
$187,853 as commissions.
Dividends on seven-day Preferred Stock are cumulative at a rate that is reset
every seven days based on the results of an auction. Dividends on 28-day
Preferred Stock are cumulative at a rate that resets every 28 days based on the
results of an auction. If the Preferred Stock fails to clear the auction on an
auction date, the Fund is required to pay the maximum applicable rate on the
Preferred Stock to holders of such stock for successive dividend periods until
such time as the stock is successfully auctioned. The maximum applicable rate on
the Preferred Stock for Series A, B, C, D and E is 110% of the interest
equivalent of the 30-day commercial paper rate and for Series F is the higher of
110% plus or times (i) the Telerate/BBA LIBOR or (ii) 90% of the Kenny S&P
30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. During
the six months ended February 29, 2008, the Preferred Stock of the Fund was
successfully auctioned at each auction date until February 13, 2008. The low,
high and average dividend ranges on the Preferred Stock for the Fund for the six
months ended February 29, 2008 were as follows:
--------------------------------------------------------------------------------
Low High Average
--------------------------------------------------------------------------------
Series A 3.200% 3.800% 3.550%
Series B 3.205 4.600 3.921
Series C 3.200 4.800 3.955
Series D 3.000 4.400 3.791
Series E 3.000 4.600 3.594
Series F 3.040 4.922 3.675
--------------------------------------------------------------------------------
BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008 17
Notes to Financial Statements (concluded)
A Fund may not declare dividends or make other distributions on Common Stock or
purchase any such shares if, at the time of the declaration, distribution or
purchase, asset coverage with respect to the outstanding Preferred Stock would
be less than 200%.
The Preferred Stock is redeemable at the option of the Fund, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared, if certain requirements relating to the
composition of the assets and liabilities of the Fund, as set forth in the
Fund's Article of Incorporation/Articles Supplementary, are not satisfied.
The holders of Preferred Stock have voting rights equal to the holders of Common
Stock (one vote per share) and will vote together with holders of Common Stock
as a single class. However, holders of Preferred Stock, voting as a separate
class, are also entitled to elect two Directors for the Fund. In addition, the
1940 Act requires that, along with approval by shareholders that might otherwise
be required, the approval of the holders of a majority of any outstanding
preferred shares, voting separately as a class, would be required to (a) adopt
any plan of reorganization that would adversely affect the preferred shares (b)
change the Fund's subclassification as a closed-end investment company or change
its fundamental investment restrictions or (c) change its business so as to
cease to be an investment company.
Since February 13, 2008, the Preferred Stock of the Fund failed to clear any of
its auctions. As a result, the Preferred Stock dividend rates were reset to the
maximum applicable rate, which ranged from 3.17% to 4.92%. A failed auction is
not an event of default for the Fund but it is a liquidity event for the holders
of the Preferred Stock. A failed auction occurs when there are more sellers of a
fund's auction rate preferred stock than buyers. It is impossible to predict how
long this imbalance will last. A successful auction for the Fund's Preferred
Stock may not occur for a long time, if ever, and even if liquidity does resume,
holders of the Preferred Stock may not have the amount of liquidity they desire
or the ability to sell the Preferred Stock at par.
5. Capital Loss Carryforward:
As of August 31, 2007, the Fund had capital loss carryforwards available to
offset future realized capital gains of $13,312,422, all of which expires in
2009.
6. Concentration Risk:
The Fund concentrates its investments in securities issued by state agencies,
other governmental entities and U.S. Territories. The Fund is more susceptible
to adverse financial, social, environmental, economic, regulatory and political
factors that may affect these state agencies, other governmental entities and
U.S. Territories, which could seriously affect the ability of these states and
their municipal subdivisions to meet continuing obligations for principal and
interest payments and therefore could impact the value of the Fund's investments
and net asset value per share, than if the Fund was not concentrated in
securities issued by state agencies, other governmental entities and U.S.
Territories.
Many municipalities insure repayment of their obligations. Although bond
insurance reduces the risk of loss due to default by an issuer, such bonds
remain subject to the risk that market value may fluctuate for other reasons and
there is no assurance that the insurance company will meet its obligations.
These securities have been identified in the Schedule of Investments.
7. Subsequent Event:
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $0.043000 per share on April 1, 2008 to shareholders of record on
March 14, 2008.
The dividends declared on Preferred Stock for the period March 1, 2008 to March
31, 2008 were as follows: Series A, $122,940; Series B, $116,140; Series C,
$102,100; Series D, $111,460; Series E, $169,740 and Series F, $207,562.
18 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
Officers and Directors
G. Nicholas Beckwith, III, Director
Richard E. Cavanagh, Director
Richard S. Davis, Director
Kent Dixon, Director
Frank J. Fabozzi, Director
Kathleen F. Feldstein, Director
James T. Flynn, Director
Henry Gabbay, Director
Jerrold B. Harris, Director
R. Glenn Hubbard, Director
W. Carl Kester, Director
Karen P. Robards, Director
Robert S. Salomon, Jr., Director
Donald C. Burke, Fund President and Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance Officer
Howard Surloff, Secretary
Custodian
The Bank of New York Mellon
New York, NY 10286
Transfer Agent
Common Stock and Preferred Stock
The Bank of New York Mellon
New York, NY 10286
Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036
BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008 19
Additional Information
Dividend Policy
The Fund's dividend policy is to distribute all or a portion of its net
investment income to its shareholders on a monthly basis. In order to provide
shareholders with a more stable level of dividend distributions, the Fund may at
times pay out less than the entire amount of net investment income earned in any
particular month and may at times in any particular month pay out such
accumulated but undistributed income in addition to net investment income earned
in that month. As a result, the dividends paid by the Fund for any particular
month may be more or less than the amount of net investment income earned by the
Fund during such month. The Fund's current accumulated but undistributed net
investment income, if any, is disclosed in the Statement of Assets and
Liabilities, which comprises part of the financial information included in this
report.
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at
http://www.sec.gov and may also be reviewed and copied at the SEC's Public
Reference Room in Washington, DC. Information on the operation of the Public
Reference Room may be obtained by calling (800) SEC-0330. The Fund's Forms N-Q
may also be obtained upon request and without charge by calling (800) 441-7762.
Electronic Delivery
Electronic copies of most financial reports are available on the Fund's website
or shareholders can sign up for e-mail notifications of quarterly statements,
annual and semi-annual reports by enrolling in the Fund's electronic delivery
program.
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.
20 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
General Information
The Fund will mail only one copy of shareholder documents, including annual and
semi-annual reports and proxy statements, to shareholders with multiple accounts
at the same address. This practice is commonly called "householding" and it is
intended to reduce expenses and eliminate duplicate mailings of shareholder
documents. Mailings of your shareholder documents may be householded
indefinitely unless you instruct us otherwise. If you do not want the mailing of
these documents to be combined with those for other members of your household,
please contact the Fund at (800) 441-7762.
Quarterly performance, semi-annual and annual reports and other information
regarding the Fund may be found on BlackRock's website, which can be accessed at
http://www.blackrock.com. This reference to BlackRock's website is intended to
allow investors public access to information regarding the Fund and does not,
and is not intended to, incorporate BlackRock's website into this report.
BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008 21
Additional Information (concluded)
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund
investors and individual clients (collectively, "Clients") and to safeguarding
their non-public personal information. The following information is provided to
help you understand what personal information BlackRock collects, how we protect
that information and why in certain cases we share such information with select
parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you
from different sources, including the following: (i) information we receive from
you or, if applicable, your financial intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that may
be of interest to you. In addition, BlackRock restricts access to non-public
personal information about its Clients to those BlackRock employees with a
legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public
personal information of its Clients, including procedures relating to the proper
storage and disposal of such information.
22 BLACKROCK MUNIVEST FUND, INC. FEBRUARY 29, 2008
This report is transmitted to shareholders only. It is not a prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. The Fund has leveraged its Common Stock,
which creates risks for Common Stock shareholders, including the likelihood of
greater volatility of net asset value and market price of shares of the Common
Stock, and the risk that fluctuations in the short-term dividend rates of the
Preferred Stock, currently set at the maximum reset rate as a result of failed
auctions, may affect the yield to Common Stock shareholders. Statements and
other information herein are as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free (800) 441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's website
at http://www.sec.gov. Information about how the Fund voted proxies relating to
securities held in the Fund's portfolio during the most recent 12-month period
ended June 30 is available upon request and without charge (1) at
www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and
Exchange Commission's website at http://www.sec.gov.
BlackRock MuniVest Fund, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
BLACKROCK
#10787-2/08
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this
semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this
semi-annual report
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-annual
report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the Board recommended by shareholders when a vacancy
becomes available. Shareholders who wish to recommend a nominee
should send nominations which include biographical information and
set forth the qualifications of the proposed nominee to the
registrant's Secretary. There have been no material changes to these
procedures.
Item 11 - Controls and Procedures
11(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.
11(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 second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - 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 MuniVest Fund, Inc.
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock MuniVest Fund, Inc.
Date: April 23, 2008
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/ Donald C. Burke
-----------------------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock MuniVest Fund, Inc.
Date: April 23, 2008
By: /s/ Neal J. Andrews
-----------------------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniVest Fund, Inc.
Date: April 23, 2008