UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act File Number 811-9191
Name of Fund: MuniHoldings Insured Fund II, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, MuniHoldings Insured Fund II, 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: (609) 282-2800
Date of fiscal year end: 09/30/05
Date of reporting period: 04/01/05 - 06/30/05
Item 1 - Schedule of Investments
MuniHoldings Insured Fund II, Inc.
Schedule of Investments as of June 30, 2005 (in Thousands)
Face
State Amount Municipal Bonds Value
Alaska - 1.3% $ 2,000 Anchorage, Alaska, Water Revenue Refunding Bonds, 6% due 9/01/2024 (a) $ 2,230
1,700 Matanuska-Susitna Boro, Alaska, GO, Series A, 6% due 3/01/2010 (d)(e) 1,918
Arkansas - 2.1% 6,105 Arkansas State Development Finance Authority, M/F Mortgage Revenue
Refunding Bonds, DRIVERS, Series 964Z, 7.568% due 6/01/2010 (d)(f)(i) 6,805
California - 38.4% 5,355 California Pollution Control Financing Authority, PCR, Refunding,
DRIVERS, AMT, Series 878Z, 7.566% due 12/01/2009 (d)(i) 6,395
California State, Department of Water Resources, Power Supply Revenue
Bonds, Series A:
6,865 5.375% due 5/01/2017 (j) 7,611
5,400 5.25% due 5/01/2020 5,872
5,790 5.375% due 5/01/2022 6,324
4,675 California State, GO, Refunding, RIB, AMT, Series 777X, 8.15% due
12/01/2021 (d)(i) 4,917
3,000 California State Public Works Board, Lease Revenue Bonds (Department of
General Services - Capitol East End Complex), Series A, 5% due 12/01/2027 (a) 3,165
2,100 California State, Various Purpose, GO, 5.50% due 4/01/2028 2,349
Cerritos, California, Community College District, GO (Election of 2004),
Series A (d):
1,550 5% due 8/01/2025 1,740
1,215 5% due 8/01/2026 1,364
2,800 Compton, California, Unified School District, GO (Election of 2002),
Series B, 5.50% due 6/01/2025 (d) 3,146
2,405 Dixon, California, Unified School District, GO (Election of 2002), 5.20%
due 8/01/2044 (c) 2,561
East Side Union High School District, California, Santa Clara County, GO
(Election of 2002), Series D (j):
2,185 5% due 8/01/2020 2,372
8,460 5% due 8/01/2029 9,026
Golden State Tobacco Securitization Corporation of California, Tobacco
Settlement Revenue Bonds, Series B:
4,410 5.75% due 6/01/2022 4,752
2,700 5.375% due 6/01/2028 (b) 2,894
1,010 5.60% due 6/01/2028 1,093
Portfolio Abbreviations
To simplify the listings of MuniHoldings Insured Fund II, Inc.'s portfolio
holdings in the Schedule of Investments, we have abbreviated the names of
many of the securities according to the list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
FHA Federal Housing Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
S/F Single-Family
VRDN Variable Rate Demand Notes
MuniHoldings Insured Fund II, Inc.
Schedule of Investments as of June 30, 2005 (concluded) (in Thousands)
Face
State Amount Municipal Bonds Value
California Los Angeles, California, Unified School District, GO:
(concluded) $ 3,400 (Election of 1997), Series F, 5% due 1/01/2028 (b) $ 3,631
10,110 Series A, 5% due 1/01/2028 (d) 10,797
4,240 Modesto, California, Schools Infrastructure Financing Agency, Special
Tax Bonds, 5.50% due 9/01/2036 (a) 4,744
5,000 Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L,
5.375% due 11/01/2027 (b) 5,361
1,500 Port of Oakland, California, Trust Receipts, Revenue Bonds, AMT, Class R,
Series K, 8.582% due 11/01/2021 (b)(i) 1,751
2,985 Roseville, California, Joint Union High School District, GO (Election of
2004), Series A, 5% due 8/01/2029 (b) 3,196
2,130 Sacramento, California, City Financing Authority, Capital Improvement
Revenue Bonds (911 Call Center and Other Municipal Projects), 5% due
12/01/2027 (a) 2,267
4,500 Sacramento County, California, Sanitation District Financing Authority,
Revenue Refunding Bonds, Series A, 5.875% due 12/01/2027 4,602
1,250 San Francisco, California, City and County Airport Commission, International
Airport, Special Facilities Lease Revenue Bonds (SFO Fuel Company LLC), AMT,
Series A, 6.10% due 1/01/2020 (c) 1,351
3,800 San Jose, California, GO (Libraries, Parks and Public Safety Projects), 5%
due 9/01/2030 (d) 4,046
4,620 Tustin, California, Unified School District, Senior Lien Special Tax Bonds
(Community Facilities District No. 97-1), Series A, 5% due 9/01/2038 (c) 4,835
University of California Revenue Bonds (Multiple Purpose Projects),
Series Q (c):
3,000 5% due 9/01/2022 3,193
6,710 5% due 9/01/2031 7,099
5,060 William S. Hart Union High School District, California, Capital Appreciation,
GO (Election of 2001), Series B, 4.70% due 9/01/2023 (c) 2,216
Colorado - 3.7% Aurora, Colorado, COP (a):
3,055 5.75% due 12/01/2019 3,414
3,230 5.75% due 12/01/2020 3,596
395 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series A-2,
7.50% due 4/01/2031 414
4,000 Colorado Health Facilities Authority, Hospital Revenue Refunding Bonds
(Poudre Valley Health Care), Series A, 5.75% due 12/01/2009 (c)(e) 4,473
Connecticut - 2.7% 8,500 Connecticut State HFA Revenue Bonds (Housing Mortgage Finance Program),
AMT, Series D-2, 5.15% due 11/15/2022 (d) 8,775
Florida - 2.0% 5,500 Dade County, Florida, Water and Sewer System Revenue Bonds, 5.25% due
10/01/2021 (b) 5,787
3,670 Miami-Dade County, Florida, Special Obligation Revenue Bonds, Sub-Series A,
5.24% due 10/01/2037 (d) 701
Georgia - 1.0% 3,000 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2034 (c) 3,287
Idaho - 0.3% 905 Idaho Housing and Finance Association, S/F Mortgage Revenue Bonds, AMT,
Series E, 6% due 1/01/2032 914
Illinois - 11.5% Chicago, Illinois, GO, Series A (b)(e):
18,130 6% due 7/01/2010 20,723
2,185 (Neighborhoods Alive 21 Program), 6% due 7/01/2010 2,497
3,650 Chicago, Illinois, O'Hare International Airport Revenue Bonds, DRIVERS,
AMT, Series 845-Z, 9.108% due 1/01/2012 (d)(i)(j) 4,677
Lake, Cook, Kane and McHenry Counties, Illinois, Community Unit School
District No. 220, GO (b):
8,035 6% due 12/01/2010 (e) 9,188
125 6% due 12/01/2020 141
Indiana - 3.2% 9,280 Shelbyville, Indiana, Elementary School Building Corporation Revenue Bonds,
First Mortgage, 5.75% due 1/15/2009 (c)(e) 10,234
Kansas - 2.1% 3,510 Kansas State Development Finance Authority, Health Facilities Revenue Bonds
(Sisters of Charity Leavenworth), Series J, 6.125% due 12/01/2020 3,912
2,805 Sedgwick and Shawnee Counties, Kansas, S/F Mortgage Revenue Bonds, AMT,
Series A-2, 6.20% due 12/01/2033 (g)(k) 2,881
Louisiana - 0.7% 2,000 Louisiana Local Government, Environmental Facilities, Community Development
Authority Revenue Bonds (Capital Projects and Equipment Acquisition),
Series A, 6.30% due 7/01/2030 (a) 2,191
Massachusetts - 7.1% 5,865 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A, 5% due 7/01/2035 6,094
15,000 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25%
due 1/01/2014 (b)(e) 16,811
Michigan - 2.8% 2,000 Detroit, Michigan, City School District, GO, Series A, 5.50% due 5/01/2021 (c) 2,218
1,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds
(Mercy-Mount Clemens), Series A, 6% due 5/15/2014 (d) 1,107
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds,
DRIVERS, AMT (i)(j):
2,500 Series 857Z, 8.166% due 3/01/2010 2,898
1,000 Series 858Z, 7.867% due 12/01/2011 1,175
1,500 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit
Edison Company), RIB, Series 282, 10.21% due 8/01/2024 (a)(i) 1,846
Minnesota - 4.4% Prior Lake, Minnesota, Independent School District Number 719, GO (c):
2,555 5.50% due 2/01/2016 2,793
1,830 5.50% due 2/01/2017 1,998
3,570 5.50% due 2/01/2018 3,898
2,840 5.50% due 2/01/2019 3,101
2,185 Sauk Rapids, Minnesota, Independent School District Number 47, GO, Series A,
5.625% due 2/01/2018 (d) 2,423
Mississippi - 0.4% 1,000 Walnut Grove, Mississippi, Correctional Authority, COP, 6% due 11/01/2009 (a)(e) 1,139
Nebraska - 1.8% Omaha Convention Hotel Corporation, Nebraska, Convention Center Revenue
Bonds, First Tier, Series A (a):
1,410 5.50% due 4/01/2020 1,559
3,985 5.50% due 4/01/2022 4,405
Nevada - 3.8% 1,750 Clark County, Nevada, IDR (Power Company Project), AMT, Series A, 6.70%
due 6/01/2022 (b) 1,779
240 Nevada Housing Division, S/F Mortgage Revenue Bonds, AMT, Series A-2, 6.30%
due 4/01/2022 (d) 242
Truckee Meadows, Nevada, Water Authority, Water Revenue Bonds, Series A (c):
5,000 5.50% due 7/01/2018 5,540
4,445 5.50% due 7/01/2019 4,925
New Jersey - 9.4% New Jersey EDA, Cigarette Tax Revenue Bonds:
8,590 5.75% due 6/15/2029 9,295
6,200 5.75% due 6/15/2034 6,965
11,000 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due
7/01/2033 (d) 12,022
2,135 New Jersey EDA, School Facility Construction, Revenue Refunding Bonds, Series
K, 5.25% due 12/15/2017 (b) 2,414
New Mexico - 1.6% 5,000 Farmington, New Mexico, PCR, Refunding (Public Service Company of San Juan),
Series C, 5.70% due 12/01/2016 (a) 5,289
New York - 16.3% 1,940 Metropolitan Transportation Authority, New York, Revenue Bonds, Series B, 5%
due 11/15/2030 (a) 2,091
14,000 Nassau Health Care Corporation, New York, Health System Revenue Bonds,
5.75% due 8/01/2009 (c)(e) 15,766
5,000 New York City, New York, GO, Refunding, Series G, 5.75% due 2/01/2006 (c) 5,160
5,570 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds,
Series A, 5.25% due 10/15/2027 (a) 6,160
4,345 New York State Dormitory Authority Revenue Bonds (School Districts Financing
Program), Series D, 5.25% due 10/01/2023 (d) 4,767
1,280 New York State Dormitory Authority, Revenue Refunding Bonds (School Districts
Bond Financing Program), Series A, 5% due 4/01/2016 (d) 1,412
200 New York State Local Government Assistance Corporation, Revenue Refunding
Bonds, Sub-Lien, VRDN, Series A-5V, 2.10% due 4/01/2020 (c)(h) 200
Tobacco Settlement Financing Corporation of New York Revenue Bonds:
2,000 Series A-1, 5.25% due 6/01/2021 (a) 2,191
7,850 Series C-1, 5.50% due 6/01/2017 8,678
3,000 Series C-1, 5.50% due 6/01/2021 3,324
3,000 West Islip, New York, Union Free School District, GO, Refunding, 5% due
10/01/2018 (c) 3,314
North Carolina - 0.5% 1,445 North Carolina, HFA, Home Ownership Revenue Bonds, AMT, Series 14-A, 5.35%
due 1/01/2022 (a) 1,509
North Dakota - 0.7% 2,200 Oliver County, North Dakota, PCR, Refunding (Square Butte Electric Cooperative),
Series A, 5.30% due 1/01/2027 (a) 2,350
Ohio - 0.9% 1,745 Aurora, Ohio, City School District, COP, 6.10% due 12/01/2009 (d)(e) 1,983
1,000 Kent State University, Ohio, University Revenue Bonds, 6% due 5/01/2024 (a) 1,124
Oklahoma - 1.7% 3,385 Claremore, Oklahoma, Public Works Authority, Capital Improvement Revenue
Refunding Bonds, Series A, 5.25% due 6/01/2027 (c) 3,732
1,700 Oklahoma State Industries Authority, Revenue Refunding Bonds (Integris
Baptist), VRDN, Series B, 2.50% due 8/15/2029 (d)(h) 1,700
Pennsylvania - 9.8% 5,525 Lehigh County, Pennsylvania, IDA, PCR, Refunding (Pennsylvania Power and
Light Utilities Corporation Project), 4.75% due 2/15/2027 (b) 5,710
5,600 Lycoming County, Pennsylvania, College Authority Revenue Bonds (Pennsylvania
College of Technology), 5.25% due 7/01/2007 (d)(e) 5,907
6,435 Pennsylvania State Higher Educational Facilities Authority, State System of
Higher Education Revenue Bonds, Series O, 5.125% due 6/15/2024 (a) 6,661
10,565 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series A,
5% due 7/01/2027 (c) 11,348
2,090 Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds
(Capital Projects and Equipment Program), 6.15% due 12/01/2029 (a) 2,231
Rhode Island - 3.5% 5,555 Providence, Rhode Island, Redevelopment Agency Revenue Refunding Bonds
(Public Safety and Municipal Buildings), Series A, 5.75% due 4/01/2010 (a)(e) 6,264
4,685 Rhode Island State Health and Educational Building Corporation Revenue Bonds
(Rhode Island School of Design), Series D, 5.50% due 8/15/2031 (j) 5,221
South Carolina - 0.8% 2,490 South Carolina Housing Finance and Development Authority, Mortgage Revenue
Refunding Bonds, AMT, Series A-2, 6.35% due 7/01/2019 (c) 2,546
Tennessee - 2.0% 3,500 Metropolitan Government of Nashville and Davidson County, Tennessee, Health
and Education Facilities Board, Revenue Refunding Bonds (Ascension Health
Credit), Series A, 5.875% due 11/15/2009 (a)(e) 3,933
1,080 Tennessee HDA, Revenue Bonds (Homeownership Program), AMT, Series 2C, 6%
due 7/01/2011 1,110
1,515 Tennessee HDA, Revenue Refunding Bonds (Homeownership Program), AMT, Series
1, 6.05% due 7/01/2014 (d) 1,545
Texas - 9.6% 3,750 Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.),
Trust Certificates, Second Tier, Series B, 6% due 1/01/2023 4,055
8,000 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT,
Series 778-Z, 8.108% due 11/01/2011 (d)(i) 9,332
Dallas-Fort Worth, Texas, International Airport Revenue Refunding and
Improvement Bonds, AMT, Series A (b):
1,835 5.875% due 11/01/2017 2,046
2,150 5.875% due 11/01/2018 2,398
2,390 5.875% due 11/01/2019 2,665
El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds,
Series A (c):
115 6% due 3/01/2015 133
170 6% due 3/01/2016 196
180 6% due 3/01/2017 208
4,873 Houston, Texas, Community College System, Participation Interests, COP (Alief
Center Project), 5.75% due 8/15/2022 (d) 5,282
1,850 Midland, Texas, Certificates of Obligation, GO, 6.10% due 3/01/2027 (b) 2,055
2,650 Waskom, Texas, Independent School District, GO (School Building), 5.25% due
2/15/2035 (c) 2,888
Utah - 2.5% 100 Emery County, Utah, PCR, Refunding (PacifiCorp Projects), VRDN, 2.50% due
11/01/2024 (a)(h) 100
2,400 Salt Lake City, Utah, Municipal Building Authority, Lease Revenue Refunding
Bonds (Municipal Improvements and Refunding Project), Series A, 5.40% due
10/15/2009 (a)(e) 2,652
Weber County, Utah, Municipal Building Authority, Lease Revenue Refunding
Bonds (d):
610 5.75% due 12/15/2007 (e) 659
4,390 5.75% due 12/15/2019 4,716
Virginia - 0.4% 1,185 Virginia State, HDA, Commonwealth Mortgage Revenue Bonds, Series J, Sub-Series
J-1, 5.20% due 7/01/2019 (d) 1,195
Washington - 6.9% 6,885 Bellevue, Washington, GO, Refunding, 5.50% due 12/01/2039 (d) 7,732
3,840 Chelan County, Washington, Public Utility District Number 001, Consolidated
Revenue Bonds (Chelan Hydro System), AMT, Series A, 5.45% due 7/01/2037 (a) 4,106
3,445 Lewis County, Washington, GO, Refunding, 5.75% due 12/01/2024 (a) 3,786
2,500 Seattle, Washington, Municipal Light and Power Revenue Bonds, 6% due
10/01/2009 (d)(e) 2,817
3,500 Seattle, Washington, Water System Revenue Bonds, Series B, 6% due 7/01/2029 (b) 3,865
West Virginia - 2.0% 6,210 West Virginia State Housing Development Fund, Housing Finance Revenue Refunding
Bonds, Series D, 5.20% due 11/01/2021 (d) 6,472
Wisconsin - 0.2% 750 Wisconsin State Health and Educational Facilities Authority Revenue Bonds
(Blood Center of Southeastern Wisconsin Project), 5.75% due 6/01/2034 808
Puerto Rico - 2.0% 6,225 Puerto Rico Commonwealth, Public Improvement, GO, 5.125% due 7/01/2030 (c) 6,657
Total Municipal Bonds (Cost - $489,495) - 160.1% 520,124
Shares
Held Short-Term Securities
1,489 Merrill Lynch Institutional Tax-Exempt Fund (l) 1,489
Total Short-Term Securities (Cost - $1,489) - 0.5% 1,489
Total Investments (Cost - $490,984*) - 160.6% 521,613
Other Assets Less Liabilities - 2.4% 7,699
Preferred Stock, at Redemption Value - (63.0%) (204,547)
-----------
Net Assets Applicable to Common Stock - 100.0% $ 324,765
===========
* The cost and unrealized appreciation (depreciation) of investments as of June 30, 2005,
as computed for federal income tax purposes, were as follows:
Aggregate cost $ 491,090
===============
Gross unrealized appreciation $ 30,756
Gross unrealized depreciation (233)
---------------
Net unrealized appreciation $ 30,523
===============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) Prerefunded.
(f) FHA Insured.
(g) FNMA Collateralized.
(h) Security may have a maturity of more than one year at time of issuance, but has variable rate
and demand features that qualify it as a short-term security. The rate disclosed is that currently
in effect. This rate changes periodically based upon prevailing market rates.
(i) The rate disclosed is that currently in effect. This rate changes periodically and inversely based
upon prevailing market rates.
(j) XL Capital Insured.
(k) GNMA Collateralized.
(l) Investments in companies considered to be an affiliate of the Fund (such companies are defined as
"Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
Merrill Lynch Institutional Tax-Exempt Fund (14,700) $ 63
Financial futures contracts sold as of June 30, 2005 were as follows:
(in Thousands)
Number of Face Unrealized
Contracts Issue Expiration Date Value Depreciation
500 10-Year U.S. Treasury Bond September 2005 $56,170 $(564)
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our
evaluation of these controls and procedures as of a date within 90
days prior to the filing date of this report.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter of
the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
MuniHoldings Insured Fund II, Inc.
By: /s/ Robert C. Doll, Jr.
----------------------------
Robert C. Doll, Jr.,
Chief Executive Officer
MuniHoldings Insured Fund II, Inc.
Date: August 19, 2005
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/ Robert C. Doll, Jr.
----------------------------
Robert C. Doll, Jr.
Chief Executive Officer
MuniHoldings Insured Fund II, Inc.
Date: August 19, 2005
By: /s/ Donald C. Burke
----------------------------
Donald C. Burke
Chief Financial Officer
MuniHoldings Insured Fund II, Inc.
Date: August 19, 2005