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 811-07478
Name of Fund: BlackRock MuniVest 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, BlackRock MuniVest 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: (800) 882-0052
Date of fiscal year end: 10/31/07
Date of reporting period: 11/01/06 - 04/30/07
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES
FIXED INCOME LIQUIDITY REAL ESTATE
BlackRock BLACKROCK
MuniVest Fund II, Inc.
SEMI-ANNUAL REPORT
APRIL 30, 2007 | (UNAUDITED)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
BlackRock MuniVest Fund II, Inc.
Portfolio Information as of April 30, 2007
Percent of
Quality Ratings by Total
S&P/Moody's Investments
- --------------------------------------------------------------------------------
AAA/Aaa ......................................................... 24.4%
AA/Aa ........................................................... 14.5
A/A ............................................................. 23.1
BBB/Baa ......................................................... 16.9
BB/Ba ........................................................... 1.9
B/B ............................................................. 2.1
CCC/Caa ......................................................... 1.1
NR (Not Rated) .................................................. 15.4
Other* .......................................................... 0.6
- --------------------------------------------------------------------------------
* Includes portfolio holdings in variable rate demand notes.
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 Net Assets, which
comprises part of the financial information included in this report.
2 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007
A Letter to Shareholders
Dear Shareholder
In its first four months, 2007 could already be termed an eventful year for
investors. For most financial markets, 2007 opened just as 2006 ended -- on a
positive trajectory. Then, at the end of February and into March, global equity
markets registered their first significant decline since last summer. The market
jitters were triggered by a significant setback in the Chinese market and were
exacerbated by worries of a weakening economy, escalating geopolitical concerns
and rising delinquencies in the subprime mortgage market. Still, underlying
stock market fundamentals appeared quite sound, supported by a generally
favorable global economic backdrop, tame inflation, slowing but still positive
earnings growth, relatively low interest rates and attractive valuations. These
conditions prevailed later, and the Dow Jones Industrial Average crossed the
13,000 mark for the first time in its history in late April.
Not unlike the equity market, the bond market also experienced volatility as
observers attempted to interpret mixed economic signals. A bond market rally
(falling yields and rising prices) late last year reversed itself early in 2007
amid some transitory signs of economic strength. Overall, yields have fluctuated
month to month but ended April little changed from the beginning of the year.
However, compared to one year ago, yields on 30-year Treasury bonds fell 36
basis points (.36%) and 10-year yields fell 44 basis points, while prices
correspondingly rose.
For its part, the Federal Reserve Board (the Fed) has left the target short-term
interest rate on hold at 5.25% since first pausing in its interest rate-hiking
campaign on August 8, 2006. The central bankers continue to express concern
about potential inflationary pressures, but also acknowledge signs of economic
weakness. Given this relatively "balanced" assessment, most observers believe
the Fed will keep interest rates on hold for now.
Against this backdrop, most major market indexes posted positive returns for the
annual and semi-annual reporting periods ended April 30, 2007:
Total Returns as of April 30, 2007 6-month 12-month
========================================================================================================================
U.S. equities (Standard & Poor's 500 Index) + 8.60% +15.24%
- ------------------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) + 6.86 + 7.83
- ------------------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +15.46 +19.81
- ------------------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers Aggregate Bond Index) + 2.64 + 7.36
- ------------------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.59 + 5.78
- ------------------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) + 6.96 +11.72
- ------------------------------------------------------------------------------------------------------------------------
If the first four months are any guide, 2007 could be a year of enhanced market
volatility. As you navigate the uncertainties, we encourage you to review your
investment goals with your financial professional and to make portfolio changes,
as needed. For more insight, we invite you to view "What's Ahead in 2007: An
Investment Perspective" and "Are You Prepared for Volatility?" at
www.blackrock.com/funds. 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/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
Fund President and Director
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007 3
A Discussion With Your Fund's Portfolio Manager
The Fund continued to benefit from its exposure to lower-rated,
higher-yielding issues and outperformed its comparable Lipper category average
for the semi-annual period.
Describe the recent market environment relative to municipal bonds.
Long-term bond yields traded in a fairly broad and volatile range over the past
six months, only to end the period little changed. Overall, financial conditions
have remained relatively balanced, with moderate economic activity and
well-contained inflationary pressures. Recent commentary from the Federal
Reserve Board (the Fed) has supported this trading range. The Fed is expected to
maintain its "balanced" economic assessment at least into mid-year.
During the six-month reporting period, 30-year U.S. Treasury bond yields rose
nine basis points (.09%) to 4.81%, while 10-year Treasury note yields rose two
basis points to 4.63%. Similarly, movements were fairly muted in the tax-exempt
market. As measured by Municipal Market Data, yields on AAA-rated municipal
bonds maturing in 30 years declined three basis points to 4.10%, and yields on
AAA-rated municipal bonds maturing in 10 years rose 12 basis points to 3.76%.
Investor demand for municipal product continued to strengthen throughout the
six-month period. The Investment Company Institute reports that long-term
municipal bond funds received over $8.7 billion in net new cash flows during the
first three months of 2007, a 42% increase compared to the first three months of
2006. Weekly fund flows, as reported by AMG Data, also have risen. Weekly
inflows during the April 2007 quarter averaged over $489 million, up from a
weekly average of $400 million in fourth quarter 2006. The improving demand
among retail investors reflects, in large part, increased acceptance of lower
nominal yields and bond coupon structure. Throughout ion, slowing but still
positive earnings growth, relatively low interest rates and attractive
valuations. These conditions prevailed later, and the Dow Jones Industrial
Average crossed the 13,000 mark for the first time in its history in late April.
much of last year, retail-oriented municipal bond broker/dealers noted
significant individual investor resistance to purchasing tax-exempt issues with
yields below 4.50% and/or issues bearing nominal coupons below 5%. As tax-exempt
bond yields have stabilized in recent months, it appears retail investors have
become increasingly comfortable purchasing tax-exempt bonds with those
characteristics, which has served to support the market's performance.
In terms of supply, issuance of long-term municipal bonds has increased over the
past six months. More than $225 billion in new bonds was issued during the April
reporting period, an increase of over 30% compared to the same six months one
year ago. Over the past three months, municipalities issued more than $106
billion in new long-term tax-exempt bonds, an increase of more than 32% compared
to the same period a year ago. So far this year, greater than $135 billion in
long-term municipal bonds have been underwritten, putting 2007 annual issuance
some 4% ahead of 2005's record pace. Issuers have continued to take advantage of
historically low interest rates to refinance outstanding issues. In the first
four months of 2007, we have seen 10 underwritings exceeding $1 billion in size.
These "mega-deals" have continued to be relatively easily absorbed by market
participants, especially non-traditional and foreign buyers who find the
liquidity afforded by these deals to be particularly attractive.
Looking ahead, we believe investor demand will be critical in maintaining the
tax-exempt market's strong technical position. The increase in new bond supply
seen this year is unlikely to abate significantly, leading to record or
near-record annual issuance. Relatively stable yield ratios compared to taxable
bonds, coupled with a comparatively steep municipal yield curve, should help to
sustain traditional and non-traditional investor interest in tax-exempt bonds
and support the market's performance into mid-2007.
How did the Fund perform during the period in light of the existing market
conditions?
For the six-month period ended April 30, 2007, the Common Stock of BlackRock
MuniVest Fund II, Inc. had net annualized yields of 5.66% and 5.39%, based on a
period-end per share net asset value of $15.19 and a per share market price of
$15.93, respectively, and $.426 per share income dividends. Over the same
period, the total investment return on the Fund's Common Stock was +1.79%, based
on a change in per share net asset value from $15.35 to $15.19, and assuming
reinvestment of all distributions.
The Fund's total return, based on net asset value, outpaced the +1.66% average
return of its comparable Lipper category of General Municipal Debt Funds
(Leveraged) for the six-month period. (Funds in this Lipper category invest
primarily in municipal debt issues rated in the top four credit-rating
categories. These funds can be leveraged via use of debt, preferred equity
and/or reverse repurchase agreements.) The Fund also provided an above-average
dividend yield relative to its peers.
4 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007
The Fund's strong performance has been generated, in part, by the continued
solid price appreciation of its lower-rated holdings. Demand for higher yield
from both retail and institutional investors has remained very strong, leading
to consistent price appreciation for many of the Fund's holdings rated BBB or
lower. Performance during the period also was aided by the prerefunding of a
number of the Fund's tobacco settlement revenue bonds in early 2007. The
refunding of these lower-rated issues, along with a continued emphasis on
purchasing higher-rated issues given relatively narrow credit spreads, resulted
in an improvement in the portfolio's overall credit quality profile during the
period.
For a description of the Fund's total investment return based on a change in the
per share market value of the Fund's Common Stock (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and assuming
reinvestment of distributions, please refer to the Financial Highlights section
of this report. As a closed-end fund, the Fund's shares may trade in the
secondary market at a premium or discount to the Fund's net asset value. As a
result, total investment returns based on changes in the market value of the
Fund's Common Stock can vary significantly from total investment returns based
on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
Overall, portfolio activity was limited during the period given the low absolute
level of yields available in the municipal marketplace. For the most part,
today's yields are well below the yields at which the vast majority of the
Fund's holdings were originally purchased. As such, we found little incentive to
restructure the portfolio.
Having said that, when opportunities did present themselves, we favored
higher-rated bonds for the portfolio. Because municipal credit spreads are very
tight, meaning there is little additional yield to be had by investing in
lower-rated issues, we favored bonds with higher ratings. This resulted in an
improvement in the Fund's overall credit quality profile. At the end of April
2007, approximately 60% of the portfolio's holdings were rated A or better.
For the six-month period ended April 30, 2007, the Fund's Auction Market
Preferred Stock had average yields of 3.57% for Series A, 3.64% for Series B,
3.53% for Series C and 3.54% for Series D. The Fed kept its target interest rate
unchanged during the six-month period at 5.25%. As such, the Fund's borrowing
costs remained relatively stable. Importantly, the municipal yield curve
maintained its positive slope, particularly compared to the Treasury curve, and
continued to generate an income benefit to the Common Stock shareholder from the
leveraging of Preferred Stock. As always, should the spread between short-term
and long-term interest rates narrow, the benefits of leveraging will decline
and, as a result, reduce the yield available to the Common Stock shareholder.
(For a more complete explanation of the benefits and risks of leveraging, see
page 6 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
Looking ahead, we expect little change in tax-exempt bond yields through
mid-year. The current financial environment remains fairly well balanced,
characterized by modest economic activity and moderate inflation pressures. We
believe such an environment should allow the Fed to remain on the sidelines
awaiting further developments before adjusting monetary policy. At its May 9,
2007 meeting, the Fed kept its target interest rate on hold for the seventh
consecutive time.
Against this backdrop, we expect to maintain the Fund's current neutral
positioning. Should economic activity soften, triggered perhaps by a correction
in equity markets or further decline in housing, we would look to adopt a more
constructive posture for the portfolio. Meanwhile, we would expect portfolio
activity to remain limited given current market levels. We intend to remain
fully invested in order to maintain the Fund's already attractive dividend
yield.
Fred K. Stuebe
Vice President and Portfolio Manager
May 10, 2007
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007 5
The Benefits and Risks of Leveraging
BlackRock MuniVest Fund II, Inc. utilizes leveraging to seek to enhance the
yield and net asset value of its Common Stock. However, these objectives cannot
be achieved in all interest rate environments. To leverage, the Fund issues
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 income based on long-term interest rates.
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 New York 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 April 30, 2007, the Fund's leverage amount, due to Auction Market
Preferred Stock, was 36.27% of total net 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 such securities.
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 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.
6 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007
Schedule of Investments as of April 30, 2007 (Unaudited) (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Alabama -- 7.3%
$ 5,300 Birmingham, Alabama, Special Care Facilities Financing
Authority, Revenue Refunding Bonds (Ascension
Health Credit), Series C-2, 5% due 11/15/2036 $ 5,495
5,000 Huntsville, Alabama, Health Care Authority Revenue
Bonds, Series B, 5.75% due 6/01/2012 (j) 5,496
3,500 Prattville, Alabama, IDB, Environmental Improvement
Revenue Bonds (International Paper Company
Projects), AMT, Series A, 4.75% due 12/01/2030 3,513
5,000 Selma, Alabama, IDB, Environmental Improvement
Revenue Bonds (International Paper Company
Project), AMT, Series A, 4.75% due 12/01/2030 4,868
2,900 Tuscaloosa, Alabama, Special Care Facilities Financing
Authority, Residential Care Facility Revenue Bonds
(Capstone Village, Inc. Project), Series A, 5.875%
due 8/01/2036 2,956
================================================================================
Arizona -- 2.6%
1,100 Coconino County, Arizona, Pollution Control
Corporation Revenue Bonds (Arizona Public Service
Co. -- Navajo Project), VRDN, AMT, Series A, 4.05%
due 10/01/2029 (l) 1,100
1,000 Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.75% due 7/01/2029 1,021
2,315 Maricopa County, Arizona, Tempe Elementary Unified
School District Number 3, GO, Refunding, 7.50%
due 7/01/2010 (d) 2,572
1,995 Pima County, Arizona, IDA, Education Revenue Bonds
(Arizona Charter Schools Project), Series C, 6.75%
due 7/01/2031 2,139
Pima County, Arizona, IDA, Education Revenue
Refunding Bonds (Arizona Charter Schools
Project II), Series A:
435 6.75% due 7/01/2011 (j) 483
525 6.75% due 7/01/2021 565
================================================================================
California -- 11.0%
7,950 California Health Facilities Financing Authority
Revenue Bonds (Kaiser Permanente), Series A,
5.25% due 4/01/2039 8,342
California State, GO:
3,140 5.50% due 4/01/2014 (j) 3,486
160 5.50% due 4/01/2028 175
210 5.50% due 4/01/2030 230
2,500 Chula Vista, California, IDR (San Diego Gas and Electric
Company), AMT, Series B, 5% due 12/01/2027 2,613
5,010 Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series A-3, 7.875% due 6/01/2013 (j) 6,110
13,000 Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Refunding
Bonds, Senior Series A-1, 5.125% due 6/01/2047 13,025
================================================================================
Colorado -- 3.7%
175 Colorado HFA, Revenue Refunding Bonds (S/F Program),
AMT, Senior Series A-2, 7.50% due 4/01/2031 176
Elk Valley, Colorado, Public Improvement Revenue
Bonds (Public Improvement Fee):
3,025 Series A, 7.35% due 9/01/2031 3,209
830 Series B, 7.45% due 9/01/2031 883
1,310 North Range Metropolitan District Number 1, Colorado,
GO, 7.25% due 12/15/2011 (j) 1,480
Plaza Metropolitan District Number 1, Colorado, Tax
Allocation Revenue Bonds (Public Improvement Fees)
3,300 8% due 12/01/2025 3,666
820 8.125% due 12/01/2025 827
1,000 Southlands, Colorado, Medical District, GO
(Metropolitan District Number 1), 7% due 12/01/2024 1,109
================================================================================
Connecticut -- 1.1%
1,165 Connecticut State Development Authority, Airport
Facility Revenue Bonds (Learjet Inc. Project), AMT,
7.95% due 4/01/2026 1,401
2,000 Mohegan Tribe Indians Gaming Authority, Connecticut,
Public Improvement Revenue Refunding Bonds
(Priority Distribution), 6.25% due 1/01/2031 2,125
================================================================================
Delaware -- 0.3%
1,000 New Castle County, Delaware, PCR (General Motors
Corporation Project), VRDN, 7% due 10/01/2008 (l) 1,000
================================================================================
Florida -- 9.2%
Fiddlers Creek, Florida, Community Development
District Number 2, Special Assessment Revenue Bonds:
2,350 Series A, 6.375% due 5/01/2035 2,517
820 Series B, 5.75% due 5/01/2013 846
6,500 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25% due 11/15/2036 6,803
6,520 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Refunding Bonds (Adventist Health
System), Series G, 5.125% due 11/15/2032 6,746
4,000 Midtown Miami, Florida, Community Development
District, Special Assessment Revenue Bonds, Series A,
6.25% due 5/01/2037 4,349
1,280 Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
5.625% due 11/15/2012 (j) 1,408
Portfolio Abbreviations
To simplify the listings of BlackRock MuniVest 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 at right.
AMT Alternative Minimum Tax (subject to)
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
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
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007 7
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Florida (concluded)
Orlando, Florida, Urban Community Development
District, Capital Improvement Special
Assessment Bonds:
$ 1,135 6.25% due 5/01/2034 $ 1,220
1,000 Series A, 6.95% due 5/01/2033 1,080
1,250 Palm Coast Park Community Development District,
Florida, Special Assessment Revenue Bonds,
5.70% due 5/01/2037 1,283
900 Park Place Community Development District, Florida,
Special Assessment Revenue Bonds, 6.75%
due 5/01/2032 964
920 Preserve at Wilderness Lake, Florida, Community
Development District, Capital Improvement Bonds,
Series A, 7.10% due 5/01/2033 1,015
================================================================================
Georgia -- 5.8%
2,000 Atlanta, Georgia, Tax Allocation Bonds (Atlantic Station
Project), 7.90% due 12/01/2024 2,213
1,225 Brunswick and Glynn County, Georgia, Development
Authority, First Mortgage Revenue Bonds (Coastal
Community Retirement Corporation Project),
Series A, 7.125% due 1/01/2025 986
1,075 Fulton County, Georgia, Development Authority, PCR
(General Motors Corporation), Refunding, VRDN,
7.50% due 4/01/2010 (l) 1,075
2,000 Fulton County, Georgia, Residential Care Facilities,
Revenue Refunding Bonds (Canterbury Court Project),
Series A, 6.125% due 2/15/2026 2,119
600 Gainesville, Georgia, Redevelopment Authority,
Educational Facilities Revenue Refunding Bonds
(Riverside Military Academy), 5.125% due 3/01/2037 613
Georgia Municipal Electric Authority, Power Revenue
Refunding Bonds:
5,620 Series W, 6.60% due 1/01/2018 6,490
380 Series W, 6.60% due 1/01/2018 (c) 437
1,250 Series X, 6.50% due 1/01/2020 1,470
Milledgeville-Baldwin County, Georgia, Development
Authority Revenue Bonds (Georgia College and
State University Foundation):
1,350 5.50% due 9/01/2024 1,449
1,000 5.625% due 9/01/2030 1,079
================================================================================
Idaho -- 0.0%
145 Idaho Housing Agency, S/F Mortgage Revenue
Refunding Bonds, AMT, Series E-2, 6.90%
due 1/01/2027 149
================================================================================
Illinois -- 10.0%
4,000 Chicago, Illinois, O'Hare International Airport, Special
Facility Revenue Refunding Bonds (American
Airlines Inc. Project), 8.20% due 12/01/2024 4,052
230 Chicago, Illinois, S/F Mortgage Revenue Bonds, AMT,
Series C, 7% due 3/01/2032 (f)(g) 236
800 Chicago, Illinois, Special Assessment Bonds (Lake
Shore East), 6.75% due 12/01/2032 867
1,000 Chicago, Illinois, Tax Allocation Bonds (Kingsbury
Redevelopment Project), Series A, 6.57%
due 2/15/2013 1,031
2,800 Hodgkins, Illinois, Environmental Improvement
Revenue Bonds (Metro Biosolids Management
LLC Project), AMT, 6% due 11/01/2023 2,896
1,000 Illinois Development Finance Authority Revenue Bonds
(Community Rehabilitation Providers Facilities),
Series A, 6.50% due 7/01/2022 1,081
2,500 Illinois Development Finance Authority, Revenue
Refunding Bonds (Community Rehabilitation
Providers Facilities), Series A, 6% due 7/01/2015 2,531
415 Illinois HDA, Revenue Refunding Bonds (M/F Program),
Series 5, 6.75% due 9/01/2023 420
Illinois State Finance Authority Revenue Bonds,
Series A:
500 (Friendship Village of Schaumburg),
5.625% due 2/15/2037 516
1,035 (Landing At Plymouth Place Project),
6% due 5/15/2037 1,103
365 McLean and Woodford Counties, Illinois, Community
Unit School District Number 005, GO, Refunding,
6.375% due 12/01/2016 (h) 405
Regional Transportation Authority, Illinois,
Revenue Bonds:
1,500 Series A, 7.20% due 11/01/2020 (b) 1,849
7,000 Series A, 6.70% due 11/01/2021 (d) 8,632
2,500 Series C, 7.75% due 6/01/2020 (d) 3,405
1,580 Village of Wheeling, Illinois, Revenue Bonds (North
Milwaukee/Lake-Cook Tax Increment Financing (TIF)
Redevelopment Project), 6% due 1/01/2025 1,611
================================================================================
Indiana -- 13.9%
Indiana Health and Educational Facilities Financing
Authority, Hospital Revenue Bonds, Series A:
8,245 (Clarian Health Obligation), 5.25%
due 2/15/2040 8,634
2,000 (Schneck Memorial Hospital Project),
5.25% due 2/15/2030 2,103
3,500 Indiana Health and Educational Facilities Financing
Authority, Hospital Revenue Refunding Bonds
(Clarian Health Obligation), Series B, 5% due 2/15/2033 3,600
5,850 Indiana Health and Educational Facilities Financing
Authority, Revenue Refunding Bonds (Ascension
Health Credit), Series B-5, 5% due 11/15/2036 6,066
5,545 Indiana State, HFA, S/F Mortgage Revenue Refunding
Bonds, Series A, 6.80% due 1/01/2017 (e) 5,678
Indiana Transportation Finance Authority, Highway
Revenue Bonds, Series A:
2,000 7.25% due 6/01/2015 2,319
3,775 6.80% due 12/01/2016 4,427
8,750 Indianapolis, Indiana, Local Public Improvement Bond
Bank, Revenue Refunding Bonds, Series D, 6.75%
due 2/01/2014 9,866
================================================================================
Kentucky -- 4.0%
11,650 Louisville and Jefferson County, Kentucky, Metropolitan
Government Health System, Revenue Refunding
Bonds (Norton Healthcare, Inc.), 5.25%
due 10/01/2036 12,169
================================================================================
Louisiana -- 7.4%
8,260 Louisiana Public Facilities Authority, Hospital Revenue
Bonds (Franciscan Missionaries of Our Lady Health
System, Inc.), Series A, 5.25% due 8/15/2036 8,632
10,000 Port New Orleans, Louisiana, IDR, Refunding
(Continental Grain Company Project), 6.50%
due 1/01/2017 10,175
3,600 Sabine River Authority, Louisiana, Water Facilities
Revenue Refunding Bonds (International Paper
Company), 6.20% due 2/01/2025 3,837
================================================================================
8 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Maryland -- 1.9%
$ 2,000 Maryland State Energy Financing Administration,
Solid Waste Disposal Revenue Bonds, Limited
Obligation (Wheelabrator Water Projects), AMT,
6.45% due 12/01/2016 $ 2,043
Maryland State Health and Higher Educational Facilities
Authority Revenue Bonds, Series B:
1,100 (King Farm Presbyterian Community),
5% due 1/01/2017 1,105
1,000 (University of Maryland Medical System),
7% due 7/01/2022 (d) 1,297
1,230 Montgomery County, Maryland, Special Obligation, GO
(West Germantown Development District), Series A,
6.70% due 7/01/2027 (k) 1,384
================================================================================
Massachusetts -- 2.7%
1,000 Massachusetts State College Building Authority,
Project Revenue Refunding Bonds, Senior Series A,
7.50% due 5/01/2011 1,138
6,000 Massachusetts State Water Resource Authority
Revenue Bonds, Series A, 6.50% due 7/15/2019 (c) 7,146
================================================================================
Michigan -- 8.0%
3,100 Flint, Michigan, Hospital Building Authority, Revenue
Refunding Bonds (Hurley Medical Center), Series A,
6% due 7/01/2020 (a) 3,377
4,320 Macomb County, Michigan, Hospital Finance Authority,
Hospital Revenue Bonds (Mount Clemens General
Hospital), Series B, 5.875% due 11/15/2034 4,580
Michigan State Hospital Finance Authority
Revenue Bonds, Series A:
5,000 (Mid-Michigan Obligor Group),
5% due 4/15/2036 5,142
3,500 (Trinity Health Credit Group),
5% due 12/01/2031 3,652
Michigan State Hospital Finance Authority,
Revenue Refunding Bonds:
1,500 (Oakwood Obligated Group), Series A, 5%
due 7/15/2025 1,550
3,000 (Sparrow Obligated Group), 5% due 11/15/2031 3,099
3,000 Pontiac, Michigan, Tax Increment Finance Authority,
Revenue Refunding Bonds (Development Area
Number 3), 6.375% due 6/01/2031 3,211
================================================================================
Mississippi -- 5.8%
5,850 Lowndes County, Mississippi, Solid Waste Disposal and
PCR, Refunding (Weyerhaeuser Company Project),
Series A, 6.80% due 4/01/2022 7,140
Mississippi Business Finance Corporation, Mississippi,
PCR, Refunding (System Energy Resources
Inc. Project):
7,200 5.875% due 4/01/2022 7,277
3,465 5.90% due 5/01/2022 3,502
================================================================================
Missouri -- 0.0%
110 Missouri State Housing Development Commission,
S/F Mortgage Revenue Bonds (Homeowner Loan),
AMT, Series A, 7.50% due 3/01/2031 (g) 115
================================================================================
Nebraska -- 0.2%
Nebraska Investment Finance Authority, S/F Housing
Revenue Bonds, AMT (g):
325 Series C, 6.30% due 9/01/2028 (f) 328
255 Series D, 6.45% due 3/01/2028 259
================================================================================
Nevada -- 0.2%
620 Clark County, Nevada, Improvement District
Number 142, Special Assessment Bonds, 6.375%
due 8/01/2023 641
================================================================================
New Jersey -- 5.2%
4,250 New Jersey EDA, Cigarette Tax Revenue Bonds,
5.50% due 6/15/2024 4,472
2,435 New Jersey EDA, Retirement Community Revenue
Bonds (Cedar Crest Village Inc. Facility), Series A,
7.25% due 11/15/2011 (j) 2,795
3,000 New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT, 6.25%
due 9/15/2029 3,100
1,680 New Jersey Health Care Facilities Financing Authority
Revenue Bonds (Pascack Valley Hospital Association),
6.625% due 7/01/2036 1,740
3,285 Tobacco Settlement Financing Corporation of
New Jersey, Asset-Backed Revenue Bonds, 7%
due 6/01/2013 (j) 3,859
================================================================================
New Mexico -- 1.1%
3,160 Farmington, New Mexico, PCR, Refunding (Tucson
Electric Power Company -- San Juan Project),
Series A, 6.95% due 10/01/2020 3,245
================================================================================
New York -- 4.2%
New York City, New York, City IDA, Civic Facility
Revenue Bonds:
690 Series C, 6.80% due 6/01/2028 758
890 Special Needs Facility Pooled Program), Series C-1,
6.50% due 7/01/2017 937
1,920 New York City, New York, City IDA, Special Facility
Revenue Bonds (British Airways Plc Project), AMT,
7.625% due 12/01/2032 2,132
40 New York City, New York, GO, Refunding, Series A,
6.375% due 5/15/2015 (d) 43
3,160 New York City, New York, GO, Series F, 5.25%
due 1/15/2033 3,338
1,500 New York State Dormitory Authority, Revenue
Refunding Bonds, RIB, Series 305, 7.76%
due 5/15/2015 (i)(m)(o) 1,730
1,000 Westchester County, New York, IDA, Civic Facility
Revenue Bonds (Special Needs Facilities Pooled
Program), Series E-1, 6.50% due 7/01/2017 1,053
2,690 Westchester County, New York, IDA, Continuing Care
Retirement, Mortgage Revenue Bonds (Kendal on
Hudson Project), Series A, 6.50% due 1/01/2034 2,886
================================================================================
North Carolina -- 1.1%
1,675 Gaston County, North Carolina, Industrial Facilities and
Pollution Control Financing Authority, Revenue Bonds
(National Gypsum Company Project), AMT, 5.75%
due 8/01/2035 1,765
1,500 North Carolina Medical Care Commission, Retirement
Facilities, First Mortgage Revenue Bonds (Givens
Estates Project), Series A, 6.375% due 7/01/2013 (j) 1,718
================================================================================
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007 9
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Pennsylvania -- 5.0%
$ 1,235 Allegheny County, Pennsylvania, IDA, Environmental
Improvement Revenue Refunding Bonds, 5.50%
due 11/01/2016 $ 1,310
880 Bucks County, Pennsylvania, IDA, Retirement Community
Revenue Bonds (Ann's Choice Inc.), Series A,
6.125% due 1/01/2025 936
Montgomery County, Pennsylvania, IDA, Revenue Bonds
(Whitemarsh Continuing Care Project):
470 6.125% due 2/01/2028 496
1,090 6.25% due 2/01/2035 1,154
2,000 Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds (National
Gypsum Company), AMT, Series B, 6.125%
due 11/01/2027 2,080
1,250 Pennsylvania State Higher Educational Facilities
Authority Revenue Bonds (University of Pennsylvania
Medical Center Health System), Series A, 6%
due 1/15/2031 1,349
1,265 Philadelphia, Pennsylvania, Authority for IDR,
Commercial Development, 7.75% due 12/01/2017 1,268
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Bonds (Guthrie Healthcare System),
Series B (j):
2,425 5.85% due 12/01/2011 2,656
3,350 7.125% due 12/01/2011 4,027
================================================================================
Rhode Island -- 0.4%
1,140 Rhode Island State Health and Educational Building
Corporation, Hospital Financing Revenue Bonds
(Lifespan Obligation Group), 6.50% due 8/15/2012 (j) 1,288
================================================================================
South Carolina -- 1.4%
1,200 Lexington County, South Carolina, Health Services
District Inc., Hospital Revenue Bonds (Lexington
Medical Center), 5.50% due 5/01/2032 1,271
1,500 Lexington County, South Carolina, Health Services
District Inc., Hospital Revenue Refunding and
Improvement Bonds, 5.50% due 11/01/2032 1,584
1,230 Medical University Hospital Authority, South Carolina,
Hospital Facilities Revenue Refunding Bonds,
6.50% due 8/15/2012 (j) 1,394
180 South Carolina Housing Finance and Development
Authority, Mortgage Revenue Bonds, AMT, Series A,
6.70% due 7/01/2027 180
================================================================================
Tennessee -- 3.5%
1,000 Johnson City, Tennessee, Health and Educational
Facilities Board, Retirement Facility Revenue Bonds
(Appalachian Christian Village Project), Series A,
6% due 2/15/2024 1,012
4,000 McMinn County, Tennessee, IDB, Solid Waste Revenue
Bonds (Recycling Facility -- Calhoun Newsprint),
AMT, 7.40% due 12/01/2022 4,054
5,000 Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Methodist Healthcare) 6.50%
due 9/01/2012 (j) 5,672
================================================================================
Texas -- 10.3%
6,110 Austin, Texas, Convention Center Revenue Bonds
(Convention Enterprises Inc.), First Tier, Series A,
6.70% due 1/01/2011 (j) 6,720
1,500 Brazos River Authority, Texas, PCR, Refunding (TXU
Energy Company LLC Project), AMT, Series A,
7.70% due 4/01/2033 1,696
1,810 Brazos River Authority, Texas, Revenue Refunding
Bonds (Reliant Energy, Inc. Project), Series B,
7.75% due 12/01/2018 1,899
5,800 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 6,365
2,500 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 2,529
3,440 Matagorda County, Texas, Navigation District
Number 1, Revenue Refunding Bonds (Reliant
Energy, Inc.), Series C, 8% due 5/01/2029 3,608
3,060 Port Corpus Christi, Texas, Individual Development
Corporation, Environmental Facilities Revenue
Bonds (Citgo Petroleum Corporation Project), AMT,
8.25% due 11/01/2031 3,129
Port Corpus Christi, Texas, Revenue Refunding Bonds
(Celanese Project):
2,500 AMT, Series B, 6.70% due 11/01/2030 2,728
800 Series A, 6.45% due 11/01/2030 858
2,020 Sabine River Authority, Texas, PCR, Refunding (TXU
Electric Company Project/TXU Energy Company
LLC), Series C, 5.20% due 5/01/2028 2,048
================================================================================
Virginia -- 0.3%
1,000 Chesterfield County, Virginia, IDA, PCR, Refunding
(Virginia Electric and Power Company), Series B,
5.875% due 6/01/2017 1,076
================================================================================
Washington -- 5.1%
2,425 Chelan County, Washington, Public Utility District
Number 001, Consolidated Revenue Refunding
Bonds (Chelan Hydro System), AMT, Series D,
6.35% due 7/01/2028 (i) 2,483
500 Energy Northwest, Washington, Electric Revenue
Refunding Bonds, DRIVERS, Series 248, 7.222%
due 7/01/2018 (i)(m)(o) 591
4,020 Washington State Housing Financing Commission,
S/F Program Revenue Bonds, AMT, Series 2A,
4.70% due 12/01/2038 (f)(g) 3,955
Washington State Public Power Supply System,
Revenue Refunding Bonds, Series B:
5,000 (Nuclear Project Number 1), 7.125%
due 7/01/2016 6,207
1,900 (Nuclear Project Number 3), 7.125%
due 7/01/2016 (i) 2,362
================================================================================
10 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007
Schedule of Investments (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Wisconsin -- 0.8%
$ 2,215 Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (SynergyHealth Inc.),
6% due 11/15/2032 $ 2,407
================================================================================
U.S. Virgin Islands -- 2.2%
6,000 Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT,
6.50% due 7/01/2021 6,752
================================================================================
Total Municipal Bonds
(Cost -- $390,272) -- 135.7% 417,218
================================================================================
================================================================================
Municipal Bonds Held in Trust (n)
================================================================================
Illinois -- 6.3%
6,000 Chicago, Illinois, O'Hare International Airport,
General Airport Revenue Refunding Bonds,
Third Lien, AMT, Series A, 5.75% due 1/1/2020 (i) 6,422
Kane and De Kalb Counties, Illinois, Community Unity
School District Number 302, GO (d):
4,200 5.75% due 2/01/2014 (j) 4,694
1,000 5.75% due 2/01/2019 1,118
6,400 Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds
(McCormick Place Expansion Project), Series B,
5.75% due 6/15/2023 (i) 6,991
================================================================================
Massachusetts -- 3.4%
10,000 Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A,
5% due 8/15/2030 (h) 10,576
================================================================================
New York -- 6.2%
6,750 New York City, New York, City Transitional Finance
Authority Revenue Bonds, Future Tax Secured,
Series B, 6.25% due 11/15/2018 7,313
11,000 New York State Dormitory Authority, State University
Educational Facilities Revenue Refunding Bonds,
Series 1989, 6% due 5/15/2010 (i)(j) 11,843
===============================================================================
Pennsylvania -- 1.4%
4,000 Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds, 6% due 1/01/2018 (h) 4,229
===============================================================================
Texas -- 6.5%
10,000 Harris County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds (School Health
Care System), Series B, 5.75% due 7/01/2027 (c) 11,997
7,500 San Antonio, Texas, Electric and Gas Revenue Bonds,
Series A, 5.75% due 2/01/2010 (j) 7,901
===============================================================================
Washington -- 5.5%
Energy Northwest, Washington, Electric Revenue
Refunding Bonds (Columbia Generating Station):
3,500 Series A, 5.75% due 7/01/2018 (i) 3,817
2,250 Series B, 6% due 7/01/2018 (b) 2,480
10,000 Washington State, Various Purpose, GO, Series B, 6%
due 1/01/2010 (h)(j) 10,579
- -------------------------------------------------------------------------------
Total Municipal Bonds Held in Trust
(Cost -- $86,198) -- 29.3% 89,960
===============================================================================
Total Investments (Cost -- $476,470*) -- 165.0% 507,178
Other Assets Less Liabilities -- 5.6% 17,301
Liability for Trust Certificates, Including Interest
Expense Payable -- (13.6%) (41,804)
Preferred Stock, at Redemption Value -- (57.0%) (175,192)
----------
Net Assets Applicable to Common Stock -- 100.0% $ 307,483
==========
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ............................................ $ 436,825
=========
Gross unrealized appreciation ............................. $ 29,902
Gross unrealized depreciation ............................. (849)
---------
Net unrealized appreciation ............................... $ 29,053
=========
(a) ACA Insured.
(b) AMBAC Insured.
(c) Escrowed to maturity.
(d) FGIC Insured.
(e) FHA Insured.
(f) FHLMC Collateralized.
(g) FNMA/GNMA Collateralized.
(h) FSA Insured.
(i) MBIA Insured.
(j) Prerefunded.
(k) Radian Insured.
(l) 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.
(m) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(n) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1(c)
to Financial Statements for details of Municipal Bonds Held in Trust.
(o) These securities are short-term floating rate certificates issued by
tender option bond trusts and are secured by the underlying municipal bond
securities.
o Forward interest rate swaps outstanding as of April 30, 2007 were as
follows:
--------------------------------------------------------------------------
Unrealized
Notional Appreciation
Amount (Depreciation)
--------------------------------------------------------------------------
Pay a fixed rate of 3.595% and receive
a floating rate based on 1-week Bond
Market Association rate
Broker, JPMorgan Chase
Expires June 2017 $ 6,000 $ 27
Pay a fixed rate of 3.7575% and receive
a floating rate based on 1-week Bond
Market Association rate
Broker JPMorgan Chase
Expires July 2017 $11,500 (89)
--------------------------------------------------------------------------
Total $(62)
====
See Notes to Financial Statements.
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007 11
Statement of Net Assets
As of April 30, 2007 (Unaudited)
================================================================================================================================
Assets
- --------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value (identified
cost -- $476,470,283) ........................................................ $507,178,247
Cash ........................................................................... 85,622
Unrealized appreciation on forward interest rate swaps ......................... 27,342
Receivables:
Securities sold ............................................................ $ 11,919,989
Interest ................................................................... 9,187,163 21,107,152
------------
Prepaid expenses ............................................................... 12,930
------------
Total assets ................................................................... 528,411,293
------------
================================================================================================================================
Liabilities
- --------------------------------------------------------------------------------------------------------------------------------
Trust certificates ............................................................. 41,300,000
Unrealized depreciation on forward interest rate swaps ......................... 89,447
Payables:
Securities purchased ....................................................... 2,055,185
Dividends to Common Stock shareholders ..................................... 1,436,988
Interest expense payable ................................................... 504,350
Investment adviser ......................................................... 198,125
Other affiliates ........................................................... 5,453 4,200,101
------------
Accrued expenses ............................................................... 146,873
------------
Total liabilities .............................................................. 45,736,421
------------
================================================================================================================================
Preferred Stock
- --------------------------------------------------------------------------------------------------------------------------------
Preferred Stock, at redemption value, par value $.05 per share (1,800 Series A
Shares, 1,800 Series B Shares, 1,800 Series C Shares) and $.10 per share
(1,600 Series D Shares) of AMPS* authorized, issued and outstanding at $25,000
per share liquidation preference ............................................. 175,191,586
------------
================================================================================================================================
Net Assets Applicable to Common Stock
- --------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock .......................................... $307,483,286
============
================================================================================================================================
Analysis of Net Assets Applicable to Common Stock
- --------------------------------------------------------------------------------------------------------------------------------
Common Stock, par value $.10 per share (20,239,262 shares issued and outstanding) $ 2,023,926
Paid-in capital in excess of par ............................................... 282,044,156
Undistributed investment income -- net ......................................... $ 2,560,225
Accumulated realized capital losses -- net ..................................... (9,790,880)
Unrealized appreciation -- net ................................................. 30,645,859
------------
Total accumulated earnings -- net .............................................. 23,415,204
------------
Total -- Equivalent to $15.19 net asset value per share of Common Stock (market
price -- $15.93) ............................................................. $307,483,286
============
* Auction Market Preferred Stock
See Notes to Financial Statements.
12 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007
Statement of Operations
For the Six Months Ended April 30, 2007 (Unaudited)
================================================================================================================================
Investment Income
- --------------------------------------------------------------------------------------------------------------------------------
Interest ............................................................ $ 14,183,651
------------
================================================================================================================================
Expenses
- --------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ............................................ $ 1,200,546
Interest expense and fees ........................................... 816,257
Commission fees ..................................................... 216,450
Accounting services ................................................. 80,705
Transfer agent fees ................................................. 52,585
Printing and shareholder reports .................................... 29,919
Professional fees ................................................... 26,300
Directors' fees and expenses ........................................ 14,205
Custodian fees ...................................................... 13,438
Pricing fees ........................................................ 12,750
Listing fees ........................................................ 4,789
Other ............................................................... 30,777
------------
Total expenses ...................................................... 2,498,721
------------
Investment income -- net ............................................ 11,684,930
------------
================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
- --------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on:
Investments -- net .............................................. 5,099,227
Forward interest rate swaps -- net .............................. (325,209) 4,774,018
------------
Change in unrealized appreciation/depreciation on:
Investments -- net .............................................. (8,161,394)
Forward interest rate swaps -- net .............................. 354,140 (7,807,254)
-----------------------------
Total realized and unrealized loss -- net ........................... (3,033,236)
------------
================================================================================================================================
Dividends to Preferred Stock Shareholders
- --------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ............................................ (3,098,413)
------------
Net Increase in Net Assets Resulting from Operations ................ $ 5,553,281
============
See Notes to Financial Statements.
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007 13
Statements of Changes in Net Assets
For the Six
Months Ended For the
April 30, Year Ended
2007 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
================================================================================================================================
Operations
- --------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ....................................................... $ 11,684,930 $ 23,398,673
Realized gain -- net ........................................................... 4,774,018 3,479,533
Change in unrealized appreciation/depreciation -- net .......................... (7,807,254) 3,531,506
Dividends to Preferred Stock shareholders ...................................... (3,098,413) (5,777,483)
-----------------------------
Net increase in net assets resulting from operations ........................... 5,553,281 24,632,229
-----------------------------
================================================================================================================================
Dividends to Common Stock Shareholders
- --------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ....................................................... (8,753,591) (20,208,309)
-----------------------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (8,753,591) (20,208,309)
-----------------------------
================================================================================================================================
Stock Transactions
- --------------------------------------------------------------------------------------------------------------------------------
Value of shares issued to Common Stock shareholders in reinvestment of dividends 708,990 1,849,222
-----------------------------
Net increase in net assets resulting from stock transactions ................... 708,990 1,849,222
-----------------------------
================================================================================================================================
Net Assets Applicable to Common Stock
- --------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets applicable to Common Stock ............. (2,491,320) 6,273,142
Beginning of period ............................................................ 309,974,606 303,701,464
-----------------------------
End of period* ................................................................. $307,483,286 $309,974,606
=============================
* Undistributed investment income -- net .................................... $ 2,560,225 $ 2,727,299
=============================
See Notes to Financial Statements.
14 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007
Financial Highlights
For the Six
The following per share data and Months Ended For the Year Ended October 31,
ratios have been derived from information April 30, 2007 ----------------------------------------------------------------
provided in the financial statements. (Unaudited) 2006 2005 2004 2003 2002
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period . $ 15.35 $ 15.13 $ 15.21 $ 14.76 $ 14.16 $ 14.29
-------------------------------------------------------------------------------
Investment income -- net ............. .57+ 1.16+ 1.19+ 1.17+ 1.17+ 1.11
Realized and unrealized gain
(loss) -- net ...................... (.15) .35 .04 .44 .49 (.25)
Dividends to Preferred Stock
shareholders from investment
income -- net ...................... (.15) (.29) (.18) (.07) (.07) (.09)
-------------------------------------------------------------------------------
Total from investment operations ..... .27 1.22 1.05 1.54 1.59 .77
-------------------------------------------------------------------------------
Less dividends to Common Stock
shareholders from investment
income -- net ...................... (.43) (1.00) (1.10) (1.09) (.99) (.90)
-------------------------------------------------------------------------------
Offering and underwriting costs
resulting from the issuance
of Preferred Stock ................. -- -- (.03) -- -- --
-------------------------------------------------------------------------------
Net asset value, end of period ....... $ 15.19 $ 15.35 $ 15.13 $ 15.21 $ 14.76 $ 14.16
===============================================================================
Market price per share, end of period $ 15.93 $ 16.29 $ 15.40 $ 15.15 $ 14.26 $ 13.36
===============================================================================
================================================================================================================================
Total Investment Return***
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ... 1.79%@ 8.36% 6.88% 10.94% 11.88% 5.86%
===============================================================================
Based on market price per share ...... .59%@ 12.98% 9.21% 14.38% 14.56% 4.25%
===============================================================================
================================================================================================================================
Ratios Based on Average Net Assets Applicable to Common Stock
- --------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of reimbursement
and excluding interest expense and
fees** ............................. 1.10%* 1.11% 1.07% .99% 1.01% 1.05%
===============================================================================
Total expenses, net of reimbursement** 1.63%* 1.61% 1.35% 1.16% 1.19% 1.29%
===============================================================================
Total expenses** ..................... 1.63%* 1.61% 1.35% 1.16% 1.19% 1.29%
===============================================================================
Total investment income -- net** ..... 7.62%* 7.70% 7.76% 7.86% 8.01% 7.79%
===============================================================================
Amount of dividends to Preferred Stock
shareholders ....................... 2.02%* 1.90% 1.14% .46% .46% .66%
===============================================================================
Investment income to Common Stock
shareholders -- net ................ 5.60%* 5.80% 6.62% 7.40% 7.55% 7.13%
===============================================================================
================================================================================================================================
Ratios Based on Average Net Assets Applicable to Preferred Stock
- --------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Stock shareholders 3.57%* 3.30% 2.09% 1.02% .98% 1.38%
===============================================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock,
end of period (in thousands) ....... $307,483 $309,975 $303,701 $303,448 $293,753 $281,830
===============================================================================
Preferred Stock outstanding at
liquidation preference, end of
period (in thousands) .............. $175,000 $175,000 $175,000 $135,000 $135,000 $135,000
===============================================================================
Portfolio turnover ................... 17% 60% 64% 20% 29% 56%
===============================================================================
================================================================================================================================
Leverage
- --------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ............ $ 2,757 $ 2,771 $ 2,735 $ 3,248 $ 3,176 $ 3,088
===============================================================================
================================================================================================================================
Dividends Per Share on Preferred Stock Outstanding
- --------------------------------------------------------------------------------------------------------------------------------
Series A -- Investment income -- net . $ 442 $ 820 $ 527 $ 262 $ 251 $ 338
===============================================================================
Series B -- Investment income -- net . $ 451 $ 869 $ 503 $ 234 $ 248 $ 319
===============================================================================
Series C -- Investment income -- net . $ 438 $ 800 $ 512 $ 268 $ 240 $ 375
===============================================================================
Series D@@ -- Investment income -- net $ 439 $ 812 $ 450 -- -- --
===============================================================================
* Annualized.
** Do not reflect the effect of dividends to Preferred Stock shareholders.
*** 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 effect of sales
charges.
+ Based on average shares outstanding.
@ Aggregate total investment return.
@@ Series D was issued on January 14, 2005.
See Notes to Financial Statements.
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007 15
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock MuniVest Fund II, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as a non-diversified, closed-end management
investment company. The Fund's financial statements are prepared in conformity
with U.S. generally accepted accounting principles, which may require the use of
management accruals and estimates. Actual results may differ from these
estimates. These unaudited financial statements reflect all adjustments, which
are, in the opinion of management, necessary to present a fair statement of the
results for the interim period. All such adjustments are of a normal, recurring
nature. The Fund determines and makes available for publication the net asset
value of its Common Stock on a daily basis. The Fund's Common Stock shares are
listed on the New York Stock Exchange under the symbol MVT. The following is a
summary of significant accounting policies followed by the Fund.
(a) Valuation of investments -- Municipal bonds are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid price
in the OTC market or on the basis of values as obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of the Fund under the general direction
of the Board of Directors. Such valuations and procedures are reviewed
periodically by the Board of Directors of the Fund. Financial futures contracts
and options thereon, which are traded on exchanges, are valued at their closing
prices as of the close of such exchanges. Options written or purchased are
valued at the last sale price in the case of exchange-traded options. Options
traded in the OTC market are valued at the last asked price (options written) or
the last bid price (options purchased). Swap agreements are valued by quoted
fair values received daily by the Fund's pricing service. Short-term investments
with a remaining maturity of 60 days or less are valued at amortized cost, which
approximates market value, under which method the investment is valued at cost
and any premium or discount is amortized on a straight line basis to maturity.
Effective April 2, 2007, short-term securities purchased with a maturity of
greater than 60 days may be valued at amortized cost. Investments in open-end
investment companies are valued at their net asset value each business day.
Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Directors of the Fund.
(b) Derivative financial instruments -- The Fund may engage in various portfolio
investment strategies both 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 due to changes in the value of the contract or if the
counterparty does not perform under the contract.
o Financial futures contracts -- Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts.
Financial futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield.
Upon entering into a contract, the Fund deposits, and maintains, as
collateral such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known
as variation margin and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
o Options -- The Fund may write covered call options and purchase put
options. When the Fund writes an option, an amount equal to the premium
received by the Fund is reflected as an asset and an equivalent liability.
The amount of the liability is subsequently marked-to-market to reflect
the current market value of the option written. When a security is
purchased or sold through an exercise of an option, the related premium
paid (or received) is added to (or deducted from) the basis of the
security acquired or deducted from (or added to) the proceeds of the
security sold. When an option expires (or the Fund enters into a closing
transaction), the Fund realizes a gain or loss on the option to the extent
of the premiums received or paid (or gain or loss to the extent the cost
of the closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
16 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007
Notes to Financial Statements (continued)
o Forward interest rate swaps -- The Fund may enter into forward interest
rate swaps. In a forward interest rate swap, the Fund and the counterparty
agree to make periodic net payments on a specified notional contract
amount, commencing on a specified future effective date, unless terminated
earlier. When the agreement is closed, the Fund records a realized gain or
loss in an amount equal to the value of the agreement.
o Swaps -- The Fund may enter into swap agreements, which are OTC contracts
in which the Fund and a counterparty agree to make periodic net payments
on a specified notional amount. The net payments can be made for a set
period of time or may be triggered by a predetermined credit event. The
net periodic payments may be based on a fixed or variable interest rate;
the change in market value of a specified security, basket of securities,
or index; or the return generated by a security. 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.
(c) Municipal bonds held in trust -- The Fund invests in leveraged residual
certificates ("TOB Residuals") issued by tender option bond trusts ("TOBs"). A
TOB is established by a third party sponsor forming a special purpose entity,
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 transfer of the municipal securities
to a TOB does not qualify for sale treatment under Statement of Financial
Accounting Standards No. 140, "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities," 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 interests 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 April 30, 2007, the aggregate value of the underlying municipal
securities transferred to TOBs was $89,960,036, the related liability for trust
certificates was $41,300,000 and the range of interest rates was 3.94% to 4.02%.
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
investments in TOB Residuals likely will adversely affect the Fund's investment
income -- net and distributions 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 management believes that the Fund's restrictions on
borrowings do not apply to the secured borrowings deemed to have occurred for
accounting purposes.
(d) 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 federal income tax provision is required.
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007 17
Notes to Financial Statements (continued)
(e) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (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.
(f) Dividends and distributions -- Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
(g) Recent accounting pronouncements -- In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109."
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 mutual funds, before being measured
and recognized in the financial statements. Adoption of FIN 48 is required for
fiscal years beginning after December 15, 2006. The impact on the Fund's
financial statements, if any, is currently being assessed.
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. At this time, management is evaluating the implications of FAS 157
and its impact on the Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, FASB issued "Statement of Financial Accounting
Standards No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which 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. At this time, management is evaluating
the implications of FAS 159 and its impact on the Fund's financial statements,
if any, has not been determined.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Investment Advisory Agreement between the Fund and BlackRock Advisors, LLC
(the "Manager"), an indirect, wholly owned subsidiary of BlackRock, Inc., became
effective on September 29, 2006. Prior to September 29, 2006, Fund Asset
Management, L.P. ("FAM") was the Fund's manager. The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect, wholly owned subsidiary of
Merrill Lynch & Co., Inc. ("Merrill Lynch"), which is the limited partner.
Merrill Lynch and The PNC Financial Services Group, Inc. are the principal
owners of BlackRock, Inc.
The Manager 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 a monthly fee at an annual rate of .50% of the Fund's average daily net
assets, including proceeds from the issuance of Preferred Stock.
In addition, the Manager has entered into a sub-advisory agreement with
BlackRock Investment Management, LLC ("BIM"), an affiliate of the Manager, under
which the Manager pays BIM for services it provides a fee that is a percentage
of the management fee paid by the Fund to the Manager.
For the six months ended April 30, 2007, the Fund reimbursed the Manager $4,572
for certain accounting services.
Certain officers and/or directors of the Fund are officers and/or directors of
BlackRock, Inc. or its affiliates.
18 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007
Notes to Financial Statements (concluded)
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended April 30, 2007 were $88,310,679 and $88,829,330, respectively.
4. Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of stock, including Preferred
Stock, par value $.10 per share, all of which were initially classified as
Common Stock. The Board of Directors is authorized, however, to reclassify any
unissued shares of stock without approval of holders of Common Stock.
Common Stock
Shares issued and outstanding during the six months ended April 30, 2007 and the
year ended October 31, 2006 increased by 46,176 and 121,589, respectively, as a
result of dividend reinvestment.
Preferred Stock
Auction Market Preferred Stock are shares of Preferred Stock of the Fund, with a
par value of $.05 per share (Series A, Series B and Series C Shares), and $.10
per share (Series D Shares). In addition, there is a liquidation preference of
$25,000 per share, plus accrued and unpaid dividends, that entitles Preferred
Stock shareholders to receive cash dividends at an annual rate that may vary for
the successive dividend periods. The yields in effect at April 30, 2007 were as
follows: Series A, 3.68%; Series B, 3.70%; Series C, 3.86%; and Series D, 3.80%.
Shares issued and outstanding during the six months ended April 30, 2007 and the
year ended October 31, 2006 remained constant.
The Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate ranging from .25% to .375%, calculated on the proceeds of each
auction. For the six months ended April 30, 2007, Merrill Lynch, Pierce, Fenner
& Smith Incorporated earned $109,778 as commissions.
5. Capital Loss Carryforward:
On October 31, 2006, the Fund had a net capital loss carryforward of $9,067,047,
of which $308,613 expires in 2007 and $8,758,434 expires in 2008. This amount
will be available to offset like amounts of any future taxable gains.
6. Subsequent Event:
On June 1, 2007, the Fund paid a tax-exempt income dividend to holders of Common
Stock in the amount of $.071000 per share to shareholders of record on May 15,
2007.
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007 19
Officers and Directors
Robert C. Doll, Jr., Fund President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Jean Margo Reid, Director
Roscoe S. Suddarth, Director
Richard R. West, Director
Donald C. Burke, Vice President and Treasurer
John M. Loffredo, Senior Vice President
Fred K. Stuebe, Vice President
Karen Clark, Fund Chief Compliance Officer
Alice A. Pellegrino, Secretary
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street -- 11 East
New York, NY 10286
Preferred Stock:
The Bank of New York
101 Barclay Street -- 7 West
New York, NY 10286
NYSE Symbol
MVT
- --------------------------------------------------------------------------------
Effective January 1, 2007, Edward D. Zinbarg retired as a Director of BlackRock
MuniVest Fund II, Inc. The Fund's Board of Directors wishes Mr. Zinbarg well in
his retirement.
- --------------------------------------------------------------------------------
20 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007
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 Web site at
http://www.sec.gov. The Fund's Forms N-Q 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 1-800-SEC-0330.
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available on
the Fund's Web site. Shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Fund's electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisers, banks or brokerages may offer this service.
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2007 21
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 Web sites.
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 II, INC. APRIL 30, 2007
BlackRock MuniVest Fund II, Inc. 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, in the opinion of bond counsel to the issuer, is exempt from federal
income taxes.
This report, including the financial information herein, is transmitted to
shareholders of BlackRock MuniVest Fund II, Inc. for their information. 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 and intends to remain leveraged by issuing Preferred Stock to
provide the Common Stock shareholders with a potentially higher rate of return.
Leverage 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 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 1-800-441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's Web site
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 (1) at www.blackrock.com and (2) on the Securities
and Exchange Commission's Web site at http://www.sec.gov.
BlackRock MuniVest Fund II, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
BLACKROCK
#16807-4/07
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 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 and 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 Act (17 CFR
270.30a-3(d)) 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 II, Inc.
By: /s/ Robert C. Doll, Jr.
--------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock MuniVest Fund II, Inc.
Date: June 19, 2007
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 of
BlackRock MuniVest Fund II, Inc.
Date: June 19, 2007
By: /s/ Donald C. Burke
--------------------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock MuniVest Fund II, Inc.
Date: June 19, 2007