UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-08349
Name of Fund: BlackRock MuniHoldings Florida Insured Fund
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 MuniHoldings Florida Insured Fund, 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: 08/31/07
Date of reporting period: 09/01/06 - 08/31/07
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
Annual Reports BLACKROCK
AUGUST 31, 2007
BlackRock MuniHoldings Florida Insured Fund (MFL)
BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
BlackRock MuniHoldings Florida Insured Fund
BlackRock MuniHoldings New York Insured Fund, Inc.
Swap Agreements
The Funds may invest in swap agreements, which are over-the-counter contracts in
which one party agrees to make periodic payments based on the change in market
value of a specified bond, basket of bonds, or index in return for periodic
payments based on a fixed or variable interest rate or the change in market
value of a different bond, basket of bonds or index. Swap agreements may be used
to obtain or reduce exposure to a bond or market without owning or taking
physical custody of securities. Swap agreements involve the risk that the party
with whom each Fund has entered into a 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.
Important Tax Information
All of the net investment income distributions paid by BlackRock MuniHoldings
Florida Insured Fund and BlackRock MuniHoldings New York Insured Fund, Inc.
during the taxable year ended August 31, 2007 qualify as tax-exempt interest
dividends for federal income tax purposes.
2 ANNUAL REPORTS AUGUST 31, 2007
A Letter to Shareholders
Dear Shareholder
Financial markets embarked on a wild ride during the August reporting period.
Subprime mortgage troubles intensified in the final months of the period,
spawning a widespread credit and liquidity crisis that crept into other areas of
the market. The U.S. Federal Reserve Board (the Fed) and other countries'
central banks stepped in to inject liquidity into the markets and bolster
investor confidence. In August, the Fed cut the discount rate, the rate charged
to banks to borrow money directly from the Fed, from 6.25% to 5.75%. Another
..50% cut in the discount rate came on September 18, along with a .50% cut in the
more widely followed federal funds rate. This brought the target short-term
interest rate, which had remained unchanged at 5.25% for over a year, to 4.75%.
Although heightened volatility has been a recurring theme throughout the past
year, the global economy (excluding the U.S. housing market) remained quite
healthy. In general, equity market fundamentals also held firm -- second-quarter
corporate earnings exceeded expectations (although future earnings could be at
risk if the economy weakens), dividend payouts and share buybacks continued to
grow, and valuations remained attractive. These tailwinds generally prevailed
over such headwinds as a slowing U.S. economy and troubled housing market,
although the more recent credit crunch dampened corporate merger-and-acquisition
activity, a key source of strength for equity markets. Stocks recorded their
second-worst day of the year in August, yet remained comfortably in the black
year-to-date.
Meanwhile, mixed economic signals and the credit market debacle made for a
volatile backdrop for fixed income, with investors fleeing from bonds associated
with the housing and credit markets in favor of higher-quality Treasury issues.
As a result, the 10-year Treasury yield, which touched 5.30% in June (its
highest level in five years), fell to 4.54% by period-end, while prices
correspondingly rose.
Against this backdrop, financial markets posted mixed results for the six- and
12-month periods ended August 31, 2007:
Total Returns as of August 31, 2007 6-month 12-month
======================================================================================================
U.S. equities (S&P 500 Index) +5.70% +15.13%
------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) +0.54 +11.36
------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +5.83 +18.71
------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +1.54 + 5.26
------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) -0.57 + 2.30
------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -1.71 + 6.46
------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
As you navigate market volatility, we encourage you to review your investment
goals with your financial professional and to make portfolio changes, as needed.
For more market insight, we invite you to visit 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 Trustee/Director
AUGUST 31, 2007 ANNUAL REPORTS 3
Fund Summary as of August 31, 2007 BlackRock MuniHoldings Florida Insured Fund
Fund Information
Symbol on New York Stock Exchange ........................ MFL
Initial Offering Date .................................... September 26, 1997
Yield on Closing Market Price as of 8/31/07 ($12.86)* .... 5.41%
Current Monthly Distribution per Common Share** .......... $ .058
Current Annualized Distribution per Common Share** ....... $ .696
Leverage as of 8/31/07*** ................................ 40.63%
--------------------------------------------------------------------------------
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past
performance does not guarantee future results.
** The distribution is not constant and is subject to change.
*** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Shares that
may be outstanding) minus the sum of accrued liabilities (other than debt
representing financial leverage).
The table below summarizes the changes in the Fund's market price and net asset
value per share:
--------------------------------------------------------------------------------
8/31/07 8/31/06 Change High Low
--------------------------------------------------------------------------------
Market Price ............... $12.86 $14.37 (10.51%) $14.66 $12.15
Net Asset Value ............ $14.09 $14.75 (4.47%) $14.95 $13.85
--------------------------------------------------------------------------------
The following charts show the Fund's portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 8/31/07 8/31/06
--------------------------------------------------------------------------------
Transportation ............................................. 20% 18%
Water & Sewer .............................................. 17 21
Education .................................................. 14 13
Lease Revenue .............................................. 14 14
City, County & State ....................................... 14 16
Hospital ................................................... 6 5
Housing .................................................... 6 3
Tax Revenue ................................................ 5 8
Industrial & Pollution Control ............................. 2 1
Power ...................................................... 2 1
--------------------------------------------------------------------------------
Credit Quality Allocations*
Credit Rating 8/31/07 8/31/06
--------------------------------------------------------------------------------
AAA/Aaa .................................................... 95% 95%
AA/Aa ...................................................... 1 1
A/A ........................................................ 3 3
BBB/Baa .................................................... 1 1
--------------------------------------------------------------------------------
* Using the higher of S&P's or Moody's ratings.
4 ANNUAL REPORTS AUGUST 31, 2007
Fund Summary as of August 31, 2007
BlackRock MuniHoldings New York Insured Fund, Inc.
Fund Information
Symbol on New York Stock Exchange ......................... MHN
Initial Offering Date ..................................... September 19, 1997
Yield on Closing Market Price as of 8/31/07 ($13.53)* ..... 5.06%
Current Monthly Distribution per share of Common Stock** .. $ .057
Current Annualized Distribution per share of Common Stock** $ .684
Leverage as of 8/31/07*** ................................. 41.39%
--------------------------------------------------------------------------------
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past
performance does not guarantee future results.
** The distribution is not constant and is subject to change.
*** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Stock that
may be outstanding) minus the sum of accrued liabilities (other than debt
representing financial leverage).
The table below summarizes the changes in the Fund's market price and net asset
value per share:
--------------------------------------------------------------------------------
8/31/07 8/31/06 Change High Low
--------------------------------------------------------------------------------
Market Price ............... $13.53 $14.62 (7.46%) $14.85 $12.65
Net Asset Value ............ $14.40 $14.96 (3.74%) $15.26 $14.12
--------------------------------------------------------------------------------
The following charts show the Fund's portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 8/31/07 8/31/06
--------------------------------------------------------------------------------
Transportation ............................................. 35% 35%
City, County & State ....................................... 16 12
Education .................................................. 8 9
Water & Sewer .............................................. 8 10
Power ...................................................... 7 7
Tax Revenue ................................................ 7 7
Housing .................................................... 6 5
Hospital ................................................... 5 6
Industrial & Pollution Control ............................. 3 4
Tobacco .................................................... 3 3
Lease Revenue .............................................. 2 2
--------------------------------------------------------------------------------
Credit Quality Allocations*
Credit Rating 8/31/07 8/31/06
--------------------------------------------------------------------------------
AAA/Aaa .................................................... 91% 90%
AA/Aa ...................................................... 6 6
A/A ........................................................ 2 3
BBB/Baa .................................................... 1 1
--------------------------------------------------------------------------------
* Using the higher of S&P's or Moody's ratings.
AUGUST 31, 2007 ANNUAL REPORTS 5
The Benefits and Risks of Leveraging
The Funds utilize leveraging to seek to enhance the yield and net asset value of
their Common Shares or Common Stock. However, these objectives cannot be
achieved in all interest rate environments. To leverage, the Funds issue
Preferred Shares or Stock, which pay dividends at prevailing short-term interest
rates, and invest the proceeds in long-term municipal bonds. The interest earned
on these investments, net of dividends to Preferred Shares or Stock, is paid to
Common Shareholders or 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 Shares or Stock. However, in order to benefit Common
Shareholders or 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 Shareholders or 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 Shares or Stock
capitalization of $100 million and the issuance of Preferred Shares or 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 Shares or Stock based on the lower short-term interest
rates. At the same time, the fund's total portfolio of $150 million earns the
income based on long-term interest rates.
In this case, the dividends paid to Preferred Shareholders or Preferred Stock
shareholders are significantly lower than the income earned on the fund's
long-term investments, and therefore the Common Shareholders or 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 Shares
or Stock will be reduced or eliminated completely. At the same time, the market
value on the fund's Common Shares or 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 Shares' or 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 Shares or Stock does not fluctuate. In addition to the
decline in net asset value, the market value of the fund's Common Shares or
Stock may also decline.
As of August 31, 2007, BlackRock MuniHoldings Florida Insured Fund and BlackRock
MuniHoldings New York Insured Fund, Inc. had leverage amounts, due to Auction
Market Preferred Shares or Stock of 40.63% and 41.39% of total net assets,
respectively, before the deduction of Preferred Shares or Stock.
As a part of their investment strategy, the Funds 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 Funds 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 Funds invest
in inverse floaters, the market value of each Fund's portfolio and the net asset
value of each Fund's shares may also be more volatile than if the Funds did not
invest in these securities. (See Note 1(c) to Financial Statements for details
of municipal bonds held in trust.)
6 ANNUAL REPORTS AUGUST 31, 2007
Schedule of Investments as of August 31, 2007
BlackRock MuniHoldings Florida Insured Fund (in Thousands)
Face
Amount Municipal Bonds Value
============================================================================================
District of Columbia -- 0.4%
--------------------------------------------------------------------------------------------
$ 2,050 Metropolitan Washington Airports Authority, D.C., Airport System
Revenue Bonds, AMT, Series A, 5.25%
due 10/01/2032 (h) $ 2,068
============================================================================================
Florida -- 153.2%
--------------------------------------------------------------------------------------------
6,600 Alachua County, Florida, School Board, COP, 5.25%
due 7/01/2029 (b) 6,805
--------------------------------------------------------------------------------------------
Bay County, Florida, Sales Tax Revenue Bonds (b):
3,490 5% due 9/01/2025 3,602
3,665 5% due 9/01/2026 3,775
--------------------------------------------------------------------------------------------
4,190 Beacon Tradeport Community Development District,
Florida, Special Assessment Revenue Refunding
Bonds (Commercial Project), Series A, 5.625%
due 5/01/2032 (k) 4,268
--------------------------------------------------------------------------------------------
4,500 Brevard County, Florida, School Board, COP, Series A,
5% due 7/01/2030 (h) 4,552
--------------------------------------------------------------------------------------------
8,000 Broward County, Florida, Educational Facilities Authority
Revenue Bonds (Nova Southeastern University), 5%
due 4/01/2031 (n) 8,111
--------------------------------------------------------------------------------------------
Cape Coral, Florida, Special Obligation Revenue Bonds (a):
3,000 5% due 10/01/2030 3,061
4,190 5% due 10/01/2033 4,266
--------------------------------------------------------------------------------------------
380 Clay County, Florida, HFA, S/F Mortgage Revenue Bonds,
AMT, 6.55% due 3/01/2028 (d)(i) 388
--------------------------------------------------------------------------------------------
1,320 Clay County, Florida, School Board, COP (Master Lease
Program), 5.75% due 7/01/2010 (a)(j) 1,403
--------------------------------------------------------------------------------------------
900 Collier County, Florida, IDA, IDR, Refunding (Southern
States Utilities), AMT, 6.50% due 10/01/2025 902
--------------------------------------------------------------------------------------------
6,400 Collier County, Florida, School Board, COP, 5%
due 2/15/2027 (c) 6,545
--------------------------------------------------------------------------------------------
Dade County, Florida, Water and Sewer System
Revenue Bonds (h):
20,575 5.25% due 10/01/2021 20,804
21,640 5.25% due 10/01/2026 21,875
--------------------------------------------------------------------------------------------
2,000 Deltona, Florida, Transportation Capital Improvement
Revenue Bonds, 5.125% due 10/01/2026 (a) 2,071
--------------------------------------------------------------------------------------------
Emerald Coast, Florida, Utilities Authority, System
Revenue Bonds (h):
1,130 5.25% due 1/01/2026 1,178
1,560 5.25% due 1/01/2036 1,618
--------------------------------------------------------------------------------------------
Escambia County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds (Multi-County Program), AMT, Series A (a)(i):
80 6.30% due 10/01/2020 81
305 6.375% due 10/01/2026 308
--------------------------------------------------------------------------------------------
1,835 Flagler County, Florida, Capital Improvement Revenue
Bonds, 5% due 10/01/2035 (a) 1,867
--------------------------------------------------------------------------------------------
Florida HFA, Homeowner Mortgage Revenue Refunding
Bonds, AMT, Series 2 (a):
1,350 5.75% due 7/01/2014 1,361
10,025 5.90% due 7/01/2029 10,174
--------------------------------------------------------------------------------------------
12,000 Florida Higher Educational Facilities Financing Authority
Revenue Bonds (Flagler College, Inc. Project), 5.25%
due 11/01/2036 (p) 12,423
--------------------------------------------------------------------------------------------
Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Bonds, AMT:
5,375 Series 3, 5.15% due 7/01/2038 (e)(g) 5,213
5,925 Series 11, 5.95% due 1/01/2032 (c) 6,022
--------------------------------------------------------------------------------------------
755 Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25% due 7/01/2022 (c) 782
--------------------------------------------------------------------------------------------
2,055 Florida Housing Finance Corporation, Housing Revenue
Bonds (Waverly Apartments), AMT, Series C-1, 6.30%
due 7/01/2030 (c) 2,148
--------------------------------------------------------------------------------------------
Florida Municipal Loan Council Revenue Bonds,
Series B (a):
1,285 5.375% due 11/01/2025 1,340
4,150 5.375% due 11/01/2030 4,321
--------------------------------------------------------------------------------------------
3,750 Florida State Board of Education, Capital Outlay, GO,
Public Education, Refunding, Series D, 5.75%
due 6/01/2022 (c) 3,968
--------------------------------------------------------------------------------------------
1,000 Florida State Board of Education, Capital Outlay, GO,
Public Education, Series C, 5.75% due 6/01/2010 (h)(j) 1,062
--------------------------------------------------------------------------------------------
2,200 Florida State Board of Regents, Housing Revenue
Bonds (University of Central Florida), 5.25%
due 10/01/2026 (h) 2,282
--------------------------------------------------------------------------------------------
3,505 Florida State Department of Management Services,
Division Facilities Management Revenue Bonds (Florida
Facilities Pool), Series A, 6% due 9/01/2010 (b)(j) 3,764
--------------------------------------------------------------------------------------------
2,900 Florida State Governmental Utility Authority, Utility
Revenue Bonds (Lehigh Utility System), 5.125%
due 10/01/2033 (b) 2,960
--------------------------------------------------------------------------------------------
11,390 Hernando County, Florida, School Board, COP, 5%
due 7/01/2030 (a) 11,529
--------------------------------------------------------------------------------------------
7,285 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25% due 11/15/2036 7,263
--------------------------------------------------------------------------------------------
6,340 Hillsborough County, Florida, HFA, S/F Mortgage
Revenue Bonds, AMT, Series 1, 5.375%
due 10/01/2049 (e)(g) 6,663
--------------------------------------------------------------------------------------------
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of Investments,
we have abbreviated the names of many of the Revenue Bonds securities according
to the list at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
PILOT Payment in Lieu of Taxes
S/F Single-Family
VRDN Variable Rate Demand Notes
AUGUST 31, 2007 ANNUAL REPORTS 7
Schedule of Investments (continued)
BlackRock MuniHoldings Florida Insured Fund (in Thousands)
Face
Amount Municipal Bonds Value
============================================================================================
Florida (continued)
--------------------------------------------------------------------------------------------
$ 3,425 Hillsborough County, Florida, Port District Revenue
Bonds (Tampa Port Authority Project), AMT, 5%
due 6/01/2036 (a) $ 3,420
--------------------------------------------------------------------------------------------
Hillsborough County, Florida, School Board, COP (a)(j):
6,600 5.375% due 7/01/2009 6,795
33,400 6% due 7/01/2009 35,066
--------------------------------------------------------------------------------------------
1,300 Indian River County, Florida, Water and Sewer Revenue
Refunding Bonds, Series A, 5.25% due 9/01/2018 (h) 1,343
--------------------------------------------------------------------------------------------
1,800 Jacksonville, Florida, Economic Development Commission,
Health Care Facilities Revenue Bonds (Mayo Clinic --
Jacksonville), Series A, 5.50% due 11/15/2036 (a) 1,881
--------------------------------------------------------------------------------------------
4,000 Jacksonville, Florida, Economic Development Commission,
Revenue Refunding Bonds (Anheuser Busch Company
Project), AMT, Series B, 4.75% due 3/01/2047 3,488
--------------------------------------------------------------------------------------------
7,305 Jacksonville, Florida, Guaranteed Entitlement Revenue
Refunding and Improvement Bonds, 5.25%
due 10/01/2032 (h) 7,522
--------------------------------------------------------------------------------------------
14,100 Jacksonville, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Baptist Medical Center Project), 5%
due 8/15/2037 (c) 14,199
--------------------------------------------------------------------------------------------
1,870 Jacksonville, Florida, Port Authority, Seaport Revenue
Bonds, AMT, 5.625% due 11/01/2026 (a) 1,943
--------------------------------------------------------------------------------------------
Jacksonville, Florida, Sales Tax Revenue Bonds:
2,000 5.50% due 10/01/2016 (b) 2,127
3,800 5.50% due 10/01/2018 (b) 4,024
11,400 5% due 10/01/2027 (a) 11,621
--------------------------------------------------------------------------------------------
1,500 Jacksonville, Florida, Water and Sewer Revenue Bonds
(United Water Florida Project), AMT, 6.35%
due 8/01/2025 (b) 1,503
--------------------------------------------------------------------------------------------
4,225 Lee County, Florida, Capital Revenue Bonds, 5.25%
due 10/01/2023 (b) 4,431
--------------------------------------------------------------------------------------------
Lee County, Florida, HFA, S/F Mortgage Revenue Bonds
(Multi-County Program), AMT (g):
80 Series A-1, 7.20% due 3/01/2033 81
8,300 Series A-2, 6% due 9/01/2040 (e) 8,903
--------------------------------------------------------------------------------------------
325 Lee County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds, AMT, Series A-2, 6.30%
due 3/01/2029 (e)(g) 328
--------------------------------------------------------------------------------------------
7,375 Lee County, Florida, School Board, COP, Series A, 5%
due 8/01/2025 (c) 7,556
--------------------------------------------------------------------------------------------
Lee Memorial Health System, Florida, Hospital Revenue
Bonds, Series A:
3,170 5% due 4/01/2032 3,095
9,000 5% due 4/01/2032 (b) 9,082
--------------------------------------------------------------------------------------------
Leesburg, Florida, Capital Improvement Revenue Bonds (h):
1,605 5.25% due 10/01/2027 1,669
3,425 5.25% due 10/01/2034 3,546
--------------------------------------------------------------------------------------------
345 Manatee County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds, AMT, Sub-Series 1, 6.25%
due 11/01/2028 (d) 348
--------------------------------------------------------------------------------------------
3,675 Marco Island, Florida, Utility System Revenue Bonds, 5%
due 10/01/2033 (a) 3,735
--------------------------------------------------------------------------------------------
5,990 Martin County, Florida, Utilities System Revenue Bonds,
5.125% due 10/01/2033 (b) 6,114
--------------------------------------------------------------------------------------------
Miami Beach, Florida, Stormwater Revenue Bonds (h):
1,630 5.75% due 9/01/2016 1,734
1,000 5.25% due 9/01/2020 1,046
4,400 5.25% due 9/01/2025 4,560
1,910 5.375% due 9/01/2030 1,986
--------------------------------------------------------------------------------------------
Miami Beach, Florida, Water and Sewer
Revenue Bonds (b):
2,690 5.625% due 9/01/2018 2,850
10,600 5.75% due 9/01/2025 11,183
--------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Aviation Revenue Bonds,
AMT, Series A:
8,010 5% due 10/01/2033 (c) 7,940
9,005 5.125% due 10/01/2035 (c) 9,027
6,000 (Miami International Airport) 6% due 10/01/2024 (h) 6,355
10,000 (Miami International Airport) 6% due 10/01/2029 (h) 10,573
--------------------------------------------------------------------------------------------
4,700 Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
Series A, 5% due 10/01/2040 (p) 4,637
--------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Educational Facilities
Authority Revenue Bonds (University of Miami),
Series A (b)(j):
5,000 5.75% due 4/01/2010 5,297
19,425 6% due 4/01/2010 20,697
--------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Bonds, Series B (h):
8,995 5.25% due 7/01/2027 9,334
12,640 5% due 7/01/2033 12,836
--------------------------------------------------------------------------------------------
12,250 Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Refunding Bonds, 5.125%
due 7/01/2025 (h) 12,552
--------------------------------------------------------------------------------------------
6,705 Miami-Dade County, Florida, GO (Parks Program), 6%
due 11/01/2024 (h) 7,047
--------------------------------------------------------------------------------------------
5,500 Miami-Dade County, Florida, HFA, Home Ownership
Mortgage Revenue Bonds, AMT, Series A, 5.55%
due 10/01/2049 (e)(g) 5,754
--------------------------------------------------------------------------------------------
2,185 Miami-Dade County, Florida, HFA, M/F Mortgage
Revenue Bonds (Marbrisa Apartments Project), AMT,
Series 2A, 6% due 8/01/2026 (c) 2,268
--------------------------------------------------------------------------------------------
Miami-Dade County, Florida, IDA, IDR (b):
5,100 (Airis Miami II LLC Project), AMT, 6%
due 10/15/2019 5,332
3,280 (BAC Funding Corporation Project), Series A, 5.25%
due 10/01/2020 3,461
--------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Solid Waste System
Revenue Bonds:
2,945 5.50% due 10/01/2015 (c) 3,131
3,105 5.50% due 10/01/2016 (c) 3,302
8,800 5.25% due 10/01/2030 (a) 9,158
--------------------------------------------------------------------------------------------
5,175 Nassau County, Florida, Water and Sewer System
Revenue Bonds, 5.125% due 9/01/2033 (a) 5,281
--------------------------------------------------------------------------------------------
525 Orange County, Florida, HFA, S/F Mortgage Revenue
Bonds, AMT, 6.85% due 10/01/2027 (g) 525
--------------------------------------------------------------------------------------------
Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional Healthcare):
9,220 6% due 12/01/2012 (j) 10,186
5,000 Series A, 6.25% due 10/01/2018 (a) 5,809
--------------------------------------------------------------------------------------------
8 AUGUST 31, 2007 ANNUAL REPORTS
Schedule of Investments (continued)
BlackRock MuniHoldings Florida Insured Fund (in Thousands)
Face
Amount Municipal Bonds Value
============================================================================================
Florida (continued)
--------------------------------------------------------------------------------------------
Orange County, Florida, School Board, COP:
$ 1,300 5.50% due 8/01/2025 (b) $ 1,356
4,500 Series A, 5% due 8/01/2032 (h) 4,568
--------------------------------------------------------------------------------------------
31,745 Orange County, Florida, Tourist Development, Tax
Revenue Bonds, 5.75% due 10/01/2009 (b)(j) 33,044
--------------------------------------------------------------------------------------------
5,335 Orange County, Florida, Tourist Development, Tax
Revenue Refunding Bonds, 5% due 10/01/2029 (b) 5,449
--------------------------------------------------------------------------------------------
Orlando and Orange County, Florida, Expressway
Authority Revenue Bonds, Series B (b):
3,250 5% due 7/01/2030 3,296
37,550 5% due 7/01/2035 37,926
--------------------------------------------------------------------------------------------
3,155 Osceola County, Florida, Infrastructure Sales Surplus
Tax Revenue Bonds, 5.375% due 10/01/2012 (b)(j) 3,399
--------------------------------------------------------------------------------------------
5,560 Osceola County, Florida, Tourist Development Tax
Revenue Bonds, Series A, 5.50% due 10/01/2027 (h) 5,856
--------------------------------------------------------------------------------------------
6,115 Palm Beach County, Florida, School Board, COP,
Refunding, Series B, 5.375% due 8/01/2017 (b) 6,484
--------------------------------------------------------------------------------------------
Palm Beach County, Florida, School Board, COP, Series A:
5,070 6% due 8/01/2010 (h)(j) 5,429
13,205 6.25% due 8/01/2010 (h)(j) 14,231
13,500 5% due 8/01/2031 (c) 13,693
--------------------------------------------------------------------------------------------
4,000 Palm Coast, Florida, Utility System Revenue Bonds, 5%
due 10/01/2027 (a) 4,054
--------------------------------------------------------------------------------------------
3,000 Panama City, Florida, Water and Sewer Revenue Bonds,
Series B, 5.25% due 10/01/2022 (a) 3,150
--------------------------------------------------------------------------------------------
2,070 Pembroke Pines, Florida, Public Improvement Revenue
Bonds, Series A, 5% due 10/01/2034 (b) 2,105
--------------------------------------------------------------------------------------------
4,940 Polk County, Florida, Public Facilities Revenue Bonds, 5%
due 12/01/2033 (a) 5,020
--------------------------------------------------------------------------------------------
9,885 Polk County, Florida, School Board COP, Master Lease,
Series A, 5.50% due 1/01/2025 (c) 10,333
--------------------------------------------------------------------------------------------
Port St. Lucie, Florida, Utility Revenue Bonds (a):
1,280 5.25% due 9/01/2026 1,331
1,345 5.25% due 9/01/2027 1,397
--------------------------------------------------------------------------------------------
5,000 Port St. Lucie, Florida, Utility System Revenue Refunding
Bonds, Series A, 5% due 9/01/2028 (a) 5,128
--------------------------------------------------------------------------------------------
Saint Johns County, Florida, IDA, IDR, Refunding
(Professional Golf Project) (a):
1,275 5.50% due 9/01/2015 1,365
1,345 5.50% due 9/01/2016 1,440
1,420 5.50% due 9/01/2017 1,512
1,500 5.50% due 9/01/2018 1,594
--------------------------------------------------------------------------------------------
Saint Johns County, Florida, Ponte Vedra Utility System
Revenue Bonds (c):
2,945 5% due 10/01/2030 3,004
4,980 5% due 10/01/2035 5,066
--------------------------------------------------------------------------------------------
Saint Johns County, Florida, Sales Tax Revenue Bonds, (b):
1,375 Series A, 5.25% due 10/01/2028 1,427
1,355 Series A, 5.25% due 10/01/2031 1,401
2,000 Series A, 5.25% due 10/01/2034 2,066
1,430 Series B, 5.25% due 10/01/2027 1,484
840 Series B, 5.25% due 10/01/2032 868
--------------------------------------------------------------------------------------------
3,500 Saint Johns County, Florida, Transportation Improvement
Revenue Bonds, 5.125% due 10/01/2032 (b) 3,576
--------------------------------------------------------------------------------------------
4,055 Saint Lucie County, Florida, School Board, COP, 6.25%
due 7/01/2010 (c)(j) 4,368
--------------------------------------------------------------------------------------------
Saint Lucie County, Florida, School Board, COP,
Refunding (c):
1,495 Series A, 5.50% due 7/01/2018 1,589
1,170 Series C, 5.50% due 7/01/2018 1,243
--------------------------------------------------------------------------------------------
Saint Lucie, Florida, West Services District, Utility
Revenue Bonds (a):
1,720 5.25% due 10/01/2034 1,785
4,750 5% due 10/01/2038 4,822
--------------------------------------------------------------------------------------------
3,250 Saint Lucie, Florida, West Services District, Utility
Revenue Refunding Bonds, Senior Lien, 6%
due 10/01/2022 (a) 3,496
--------------------------------------------------------------------------------------------
South Florida Water Management District, COP (b):
4,610 5% due 10/01/2031 4,677
6,615 5% due 10/01/2036 6,697
--------------------------------------------------------------------------------------------
1,750 South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital Inc.), 5.80%
due 10/01/2034 1,783
--------------------------------------------------------------------------------------------
2,250 Sunrise, Florida, Utility System Revenue Refunding
Bonds, 5.20% due 10/01/2022 (b) 2,398
--------------------------------------------------------------------------------------------
2,430 Sunrise Lakes, Florida, Phase 4 Recreation District,
Refunding Bonds, GO, 5.25% due 8/01/2024 (b) 2,457
--------------------------------------------------------------------------------------------
Tallahassee, Florida, Lease Revenue Bonds (Florida
State University Project), Series A (a):
2,800 5.25% due 8/01/2023 2,882
1,000 5.375% due 8/01/2026 1,039
--------------------------------------------------------------------------------------------
30,335 Tampa Bay, Florida, Water Utility System Revenue Bonds,
6% due 10/01/2011 (h)(j) 32,967
--------------------------------------------------------------------------------------------
3,835 Taylor County, Florida, Sales Tax Revenue Bonds, 6%
due 10/01/2010 (h)(j) 4,091
--------------------------------------------------------------------------------------------
8,935 University of Central Florida (UCF) Athletics Association
Inc., COP, Series A, 5.25% due 10/01/2034 (h) 9,196
--------------------------------------------------------------------------------------------
1,500 University of North Florida, Capital Improvement
Revenue Bonds (Housing Project), 5% due 11/01/2032 (h) 1,529
--------------------------------------------------------------------------------------------
AUGUST 31, 2007 ANNUAL REPORTS 9
Schedule of Investments (concluded)
BlackRock MuniHoldings Florida Insured Fund (in Thousands)
Face
Amount Municipal Bonds Value
============================================================================================
Florida (concluded)
--------------------------------------------------------------------------------------------
$ 5,800 University of North Florida Financing Corporation,
Capital Improvement Revenue Bonds (Housing Project),
5% due 11/01/2037 (h) $ 5,887
--------------------------------------------------------------------------------------------
Village Center Community Development District,
Florida, Recreational Revenue Bonds, Series A (a):
10,775 5.375% due 11/01/2034 11,279
1,750 5.125% due 11/01/2036 1,793
--------------------------------------------------------------------------------------------
3,000 Village Center Community Development District, Florida,
Utility Revenue Bonds, 5.25% due 10/01/2023 (a) 3,126
--------------------------------------------------------------------------------------------
Volusia County, Florida, IDA, Student Housing Revenue
Bonds (Stetson University Project), Series A (l):
2,075 5% due 6/01/2025 2,134
1,740 5% due 6/01/2035 1,771
============================================================================================
Georgia -- 1.9%
--------------------------------------------------------------------------------------------
9,700 Atlanta, Georgia, Airport Passenger Facility Charge and
Subordinate Lien General Revenue Refunding Bonds,
Series C, 5% due 1/01/2033 (c) 9,828
============================================================================================
Puerto Rico -- 1.5%
--------------------------------------------------------------------------------------------
2,600 Puerto Rico Commonwealth, Public Improvement, GO,
Series A, 5.25% due 7/01/2026 2,674
--------------------------------------------------------------------------------------------
2,500 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series TT, 5% due 7/01/2037 2,492
--------------------------------------------------------------------------------------------
2,725 Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Revenue Bonds
(University Plaza Project), Series A, 5.625%
due 7/01/2019 (a) 2,863
--------------------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $815,325) -- 157.0% 833,422
============================================================================================
Face
Amount Municipal Bonds Held in Trust (f) Value
============================================================================================
Florida -- 20.0%
--------------------------------------------------------------------------------------------
$28,210 Florida State Board of Education, Lottery Revenue
Bonds, Series B, 6.25% due 7/01/2010 (h)(j) $ 30,388
--------------------------------------------------------------------------------------------
28,650 Florida State Turnpike Authority, Turnpike Revenue
Bonds (Department of Transportation), Series A, 6.25%
due 7/01/2010 (h)(j) 30,863
--------------------------------------------------------------------------------------------
19,925 Lee County, Florida, Airport Revenue Bonds, AMT,
Series A, 6% due 10/01/2029 (c) 21,091
--------------------------------------------------------------------------------------------
15,000 Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
Series A, 5% due 10/01/2040 (p) 14,799
--------------------------------------------------------------------------------------------
8,790 Santa Rosa County, Florida, School Board, COP, Revenue
Refunding Bonds, Series 2, 5.25% due 2/01/2031 (h) 9,120
--------------------------------------------------------------------------------------------
Total Municipal Bonds Held in Trust
(Cost -- $104,996) -- 20.0% 106,261
============================================================================================
Shares
Held Short-Term Securities
============================================================================================
3,370 CMA Florida Municipal Money Fund, 3.47% (m)(o) 3,370
--------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $3,370) -- 0.6% 3,370
============================================================================================
Total Investments (Cost -- $923,691*) -- 177.6% 943,053
Other Assets Less Liabilities -- 0.7% 3,679
Liability for Trust Certificates, Including Interest
Expense Payable -- (9.8%) (52,338)
Preferred Shares, at Redemption Value -- (68.5%) (363,491)
------------
Net Assets Applicable to Common Shares -- 100.0% $ 530,903
============
* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost .............................................. $877,173
========
Gross unrealized appreciation ............................... $ 20,119
Gross unrealized depreciation ............................... (6,120)
--------
Net unrealized appreciation ................................. $ 13,999
========
(a) MBIA Insured.
(b) AMBAC Insured.
(c) FSA Insured.
(d) GNMA Collateralized.
(e) FHLMC Collateralized.
(f) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1(c)
to Financial Statements for details of municipal bonds held in trust.
(g) FNMA/GNMA Collateralized.
(h) FGIC Insured.
(i) FHA Insured.
(j) Prerefunded.
(k) Radian Insured.
(l) CIFG Insured.
(m) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
CMA Florida Municipal Money Fund (12,300) $397
--------------------------------------------------------------------------
(n) Assured Guaranty Insured.
(o) Represents the current yield as of August 31, 2007.
(p) XL Capital Insured.
See Notes to Financial Statements.
10 AUGUST 31, 2007 ANNUAL REPORTS
Schedule of Investments as of August 31, 2007
BlackRock MuniHoldings New York Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
============================================================================================
New York -- 141.4%
--------------------------------------------------------------------------------------------
Albany County, New York, Airport Authority, Airport
Revenue Bonds, AMT (g):
$ 1,500 5.375% due 12/15/2017 $ 1,534
1,500 5.50% due 12/15/2019 1,535
5,200 6% due 12/15/2023 (q) 5,330
--------------------------------------------------------------------------------------------
3,375 Albany, New York, IDA, Civic Facility Revenue Bonds
(The University Heights Association -- Albany Law
School), Series A, 6.75% due 12/01/2009 (j)(k) 3,573
--------------------------------------------------------------------------------------------
2,000 Buffalo, New York, GO, Series D, 6%
due 12/01/2009 (g)(j) 2,120
--------------------------------------------------------------------------------------------
1,025 Erie County, New York, GO, Public Improvement,
Series A, 5.75% due 10/01/2013 (e) 1,076
--------------------------------------------------------------------------------------------
Erie County, New York, IDA, School Facility
Revenue Bonds (City of Buffalo Project) (g):
2,500 5.75% due 5/01/2019 2,697
4,150 5.75% due 5/01/2024 4,343
--------------------------------------------------------------------------------------------
10,000 Hudson Yards Infrastructure Corporation, New York,
Revenue Bonds, Series A, 4.50% due 2/15/2047 (i) 9,215
--------------------------------------------------------------------------------------------
Long Island Power Authority, New York, Electric System
Revenue Bonds, Series A (a):
3,000 5% due 9/01/2029 3,069
5,950 5% due 9/01/2034 6,058
--------------------------------------------------------------------------------------------
Long Island Power Authority, New York, Electric System
Revenue Refunding Bonds:
3,500 Series B, 5% due 12/01/2035 (g) 3,574
6,250 Series F, 4.25% due 5/01/2033 (i) 5,606
--------------------------------------------------------------------------------------------
3,750 Madison County, New York, IDA, Civic Facility Revenue
Bonds (Colgate University Project), Series A, 5%
due 7/01/2035 (a) 3,835
--------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York,
Dedicated Tax Fund Revenue Bonds, Series A:
5,000 5% due 11/15/2011 (e)(j) 5,273
2,000 5% due 11/15/2035 (i) 2,049
--------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York,
Revenue Refunding Bonds:
12,390 Series A, 5% due 11/15/2030 (g) 12,548
2,500 Series A, 5.25% due 11/15/2031 (e) 2,576
29,000 Series A, 5.75% due 11/15/2032 (g) 31,024
1,500 Series B, 5% due 11/15/2028 (i) 1,525
--------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York,
Service Contract Revenue Refunding Bonds, Series A (e):
3,500 5% due 7/01/2021 3,620
2,000 5% due 7/01/2025 2,039
--------------------------------------------------------------------------------------------
2,535 Metropolitan Transportation Authority, New York,
Transit Facilities Revenue Bonds, Series C, 4.75%
due 7/01/2012 (g)(j) 2,660
--------------------------------------------------------------------------------------------
2,500 Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Series A, 5%
due 11/15/2032 (e) 2,532
--------------------------------------------------------------------------------------------
6,300 Metropolitan Transportation Authority, New York,
Transportation Revenue Refunding Bonds, Series F,
5.25% due 11/15/2012 (i)(j) 6,765
--------------------------------------------------------------------------------------------
4,210 Nassau Health Care Corporation, New York, Health
System Revenue Bonds, 5.75% due 8/01/2009 (g)(j) 4,452
--------------------------------------------------------------------------------------------
2,000 New York City, New York, City Health and Hospital
Corporation, Health System Revenue Refunding Bonds,
Series A, 5.25% due 2/15/2017 (i) 2,060
--------------------------------------------------------------------------------------------
New York City, New York, City Housing Development
Corporation, M/F Housing Revenue Bonds, AMT:
1,250 Series C, 5% due 11/01/2026 1,226
2,000 Series C, 5.05% due 11/01/2036 2,005
1,000 Series H-1, 4.70% due 11/01/2040 916
2,340 Series H-2, 5.125% due 11/01/2034 2,304
2,180 Series J-2-A, 4.85% due 11/01/2040 2,034
--------------------------------------------------------------------------------------------
1,200 New York City, New York, City IDA, Civic Facility
Revenue Refunding Bonds (Nightingale-Bamford
School), 5.25% due 1/15/2017 (a) 1,278
--------------------------------------------------------------------------------------------
11,805 New York City, New York, City IDA, IDR (Japan Airlines
Company), AMT, 6% due 11/01/2015 (g) 11,839
--------------------------------------------------------------------------------------------
New York City, New York, City IDA, PILOT
Revenue Bonds:
4,000 (Queens Baseball Stadium Project), 5%
due 1/01/2031 (a) 4,108
14,640 (Queens Baseball Stadium Project), 5%
due 1/01/2036 (a) 14,957
4,500 (Queens Baseball Stadium Project), 5%
due 1/01/2039 (a) 4,597
2,800 (Queens Baseball Stadium Project), 5%
due 1/01/2046 (a) 2,831
20,750 (Yankee Stadium Project), 5% due 3/01/2036 (i) 21,187
--------------------------------------------------------------------------------------------
7,965 New York City, New York, City IDA, Parking Facility
Revenue Bonds (Royal Charter -- New York
Presbyterian), 5.75% due 12/15/2029 (g) 8,591
--------------------------------------------------------------------------------------------
1,500 New York City, New York, City IDA, Special Facility
Revenue Refunding Bonds (Terminal One Group
Association Project), AMT, 5.50% due 1/01/2024 1,569
--------------------------------------------------------------------------------------------
500 New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Crossover Revenue
Refunding Bonds, Series F, 5% due 6/15/2029 (g) 507
--------------------------------------------------------------------------------------------
New York City, New York, City Municipal Water Finance
Authority, Water and Sewer Systems Revenue Bonds:
6,720 5% due 6/15/2036 (i) 6,873
1,000 Series A, 4.25% due 6/15/2033 904
3,200 Series A, 4.25% due 6/15/2039 (g) 2,863
--------------------------------------------------------------------------------------------
New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Revenue
Refunding Bonds:
4,500 Series A, 5% due 6/15/2035 (a) 4,545
1,250 Series A, 5.125% due 6/15/2034 (i) 1,267
1,250 Series C, 5% due 6/15/2035 (i) 1,274
1,700 VRDN, Series A, 3.90% due 6/15/2025 (e)(l) 1,700
--------------------------------------------------------------------------------------------
New York City, New York, City Transitional Finance
Authority, Building Aid Revenue Bonds (e):
1,250 Series S-1, 5% due 7/15/2031 1,287
3,900 Series S-2, 4.25% due 1/15/2034 3,529
--------------------------------------------------------------------------------------------
New York City, New York, City Transitional Finance
Authority, Future Tax Secured Revenue Bonds:
1,145 Series B, 5.50% due 2/01/2012 (i) 1,218
805 Series B, 5.50% due 2/01/2013 (i) 856
6,405 Series B, 6.25% due 11/15/2018 (e) 6,890
16,200 Series C, 5% due 2/01/2033 (e) 16,511
2,500 Series E, 5.25% due 2/01/2022 (i) 2,627
AUGUST 31, 2007 ANNUAL REPORTS 11
Schedule of Investments (continued)
BlackRock MuniHoldings New York Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
============================================================================================
New York (continued)
--------------------------------------------------------------------------------------------
$ 1,000 New York City, New York, City Transitional Finance
Authority, Revenue Refunding Bonds, Series A,
5% due 11/15/2026 (e) $ 1,018
--------------------------------------------------------------------------------------------
New York City, New York, GO
2,685 Series A, 5% due 8/01/2030 2,718
2,220 Series B, 5.75% due 8/01/2010 (i)(j) 2,368
2,280 Series B, 5.75% due 8/01/2013 (i) 2,423
3,750 Series D, 5.25% due 10/15/2013 (j) 4,055
8,000 Series J, 5% due 5/15/2023 8,201
4,000 Series M, 5% due 4/01/2035 4,035
1,150 Sub-Series C-1, 5.25% due 8/15/2026 1,197
--------------------------------------------------------------------------------------------
New York City, New York, GO, Refunding, Series A:
880 6.375% due 5/15/2010 (e)(j) 949
3,700 6.25% due 5/15/2026 (g) 3,955
--------------------------------------------------------------------------------------------
2,700 New York City, New York, IDA, Civic Facility Revenue
Refunding Bonds (Polytechnic University), 5.25%
due 11/01/2037 (d) 2,582
--------------------------------------------------------------------------------------------
New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds:
1,250 DRIVERS, Series 1438Z, 5.909%
due 10/15/2012 (a)(m) 1,357
15,175 Series A, 5% due 10/15/2032 (a) 15,576
--------------------------------------------------------------------------------------------
3,950 New York City, New York, Trust for Cultural Resources,
Revenue Refunding Bonds (American Museum of
Natural History), Series A, 5% due 7/01/2036 (i) 4,023
--------------------------------------------------------------------------------------------
3,000 New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured),
5% due 11/15/2030 (a) 3,077
--------------------------------------------------------------------------------------------
New York State Dormitory Authority, Hospital Revenue
Refunding Bonds:
1,000 (New York Presbyterian Hospital), 5.50%
due 8/01/2011 (a)(f) 1,062
2,000 (North General Hospital), 5.75% due 2/15/2017 (n) 2,175
--------------------------------------------------------------------------------------------
New York State Dormitory Authority, Lease
Revenue Bonds:
1,535 (Municipal Health Facilities Improvement Program),
Series 1, 5.50% due 1/15/2014 (g) 1,623
645 (Office Facilities Audit and Control), 5.50%
due 4/01/2023 (i) 667
--------------------------------------------------------------------------------------------
700 New York State Dormitory Authority, Non-State
Supported Debt Revenue Bonds (School District
Financing Program), Series A, 5% due 10/01/2035 (g) 718
--------------------------------------------------------------------------------------------
New York State Dormitory Authority Revenue Bonds:
1,340 (853 Schools Program), Issue 2, Series E, 5.75%
due 7/01/2019 (a) 1,402
1,200 (Cooper Union of Advance Science), 6.25%
due 7/01/2009 (i)(j) 1,266
2,058 (Gustavus Adolphus Child & Family Services, Inc.),
Series B, 5.50% due 7/01/2018 (a) 2,143
6,750 (Interfaith Medical Center), Series D, 5.40%
due 2/15/2008 (i)(j) 6,903
1,585 (Long Island University), Series B, 5.50%
due 9/01/2020 (k) 1,636
1,250 (Long Island University), Series B, 5.25%
due 9/01/2028 (k) 1,256
1,180 (New York State Rehabilitation Association),
Series A, 5.25% due 7/01/2019 (c) 1,247
1,000 (New York State Rehabilitation Association),
Series A, 5.125% due 7/01/2023 (c) 1,029
5,345 (Pace University), 6% due 7/01/2010 (i)(j) 5,735
2,150 (Saint Barnabas Hospital), 5.45%
due 8/01/2035 (a)(f) 2,174
1,240 (School Districts Financing Program), Series D,
5% due 10/01/2030 (i) 1,255
6,900 (School Districts Financing Program), Series E,
5.75% due 10/01/2030 (i) 7,372
1,405 (Upstate Community Colleges), Series A, 6%
due 7/01/2010 (g)(j) 1,507
--------------------------------------------------------------------------------------------
New York State Dormitory Authority, Revenue
Refunding Bonds:
1,865 (City University System), Series 1, 5.25%
due 7/01/2014 (e) 1,911
3,400 (Saint Charles Hospital and Rehabilitation Center),
Series A, 5.625% due 7/01/2012 (i) 3,539
1,370 (School District Financing Program), Series I,
5.75% due 10/01/2018 (i) 1,486
565 Series B, 5.50% due 8/15/2017 (i) 577
--------------------------------------------------------------------------------------------
New York State Dormitory Authority, Supported Debt
Revenue Bonds:
1,550 (Mental Health Facilities), Series B, 5.25%
due 2/15/2014 (j) 1,677
285 (Mental Health Facilities), Series B, 5.25%
due 2/15/2023 297
1,060 (Mental Health Facilities), Series D, 5.875%
due 8/15/2010 (g)(j) 1,127
7,000 (State University Dormitory Facilities), Series A,
5% due 7/01/2031 (i) 7,196
--------------------------------------------------------------------------------------------
1,000 New York State Dormitory Authority, Supported Debt
Revenue Refunding Bonds (Department of Health),
Series A, 5% due 7/01/2025 (c) 1,026
--------------------------------------------------------------------------------------------
18,090 New York State Energy Research and Development
Authority, Gas Facilities Revenue Refunding Bonds
(Brooklyn Union Gas Company/Keyspan), AMT,
Series A, 4.70% due 2/01/2024 (e) 17,607
--------------------------------------------------------------------------------------------
12 AUGUST 31, 2007 ANNUAL REPORTS
Schedule of Investments (continued)
BlackRock MuniHoldings New York Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
============================================================================================
New York (continued)
--------------------------------------------------------------------------------------------
$ 6,000 New York State Energy Research and Development
Authority, PCR, Refunding (Central Hudson Gas and
Electric), Series A, 5.45% due 8/01/2027 (a) $ 6,212
--------------------------------------------------------------------------------------------
6,000 New York State Environmental Facilities Corporation,
Water Facilities Revenue Bonds (Long Island Water Corp.
Project), AMT, Series A, 4.90% due 10/01/2034 (i) 5,840
--------------------------------------------------------------------------------------------
4,400 New York State Environmental Facilities Corporation,
Water Facilities Revenue Refunding Bonds (Spring
Valley Water Company), Series B, 6.15%
due 8/01/2024 (a) 4,409
--------------------------------------------------------------------------------------------
2,000 New York State, GO, Series A, 4.125%
due 3/01/2037 (e) 1,745
--------------------------------------------------------------------------------------------
3,250 New York State, HFA, M/F Housing Revenue Bonds
(Saint Philips Housing), AMT, Series A, 4.65%
due 11/15/2038 (o) 3,096
--------------------------------------------------------------------------------------------
750 New York State, HFA, State Personal Income Tax
Revenue Bonds (Economic Development and Housing),
Series A, 5% due 9/15/2023 (i) 774
--------------------------------------------------------------------------------------------
6,800 New York State Medical Care Facilities Finance Agency,
Revenue Bonds (Montefiore Medical Center), Series A,
5.75% due 2/15/2025 (a)(f) 6,921
--------------------------------------------------------------------------------------------
New York State Mortgage Agency, Homeowner
Mortgage Revenue Bonds, AMT:
1,745 Series 130, 4.80% due 10/01/2037 1,622
1,000 Series 143, 4.90% due 10/01/2037 944
--------------------------------------------------------------------------------------------
New York State Mortgage Agency, Homeowner
Mortgage Revenue Refunding Bonds:
2,140 AMT, Series 67, 5.70% due 10/01/2017 (i) 2,173
1,500 AMT, Series 133, 4.95% due 10/01/2021 1,480
2,100 Series 83, 5.55% due 10/01/2027 (i) 2,130
--------------------------------------------------------------------------------------------
1,170 New York State Mortgage Agency Revenue Refunding
Bonds, AMT, Series 82, 5.65% due 4/01/2030 (i) 1,208
--------------------------------------------------------------------------------------------
5,000 New York State Thruway Authority, General Revenue
Bonds, Series F, 5% due 1/01/2030 (a) 5,126
--------------------------------------------------------------------------------------------
New York State Thruway Authority, General Revenue
Refunding Bonds, Series G (g):
2,000 4.75% due 1/01/2029 2,006
9,250 4.75% due 1/01/2030 9,261
--------------------------------------------------------------------------------------------
8,000 New York State Thruway Authority, Highway and
Bridge Trust Fund Revenue Bonds, Series B-1, 5.75%
due 4/01/2010 (e)(j) 8,493
--------------------------------------------------------------------------------------------
8,700 New York State Thruway Authority, Second General
Highway and Bridge Trust Fund Revenue Bonds,
Series A, 5% due 4/01/2026 (a) 8,994
--------------------------------------------------------------------------------------------
New York State Urban Development Corporation,
Personal Income Tax Revenue Bonds:
3,000 Series C-1, 5% due 3/15/2013 (i)(j) 3,186
2,000 (State Facilities), Series A-1, 5% due 3/15/2029 (e) 2,047
--------------------------------------------------------------------------------------------
1,000 Niagara Falls, New York, City School District, COP,
Refunding (High School Facility), 5% due 6/15/2028 (g) 1,022
--------------------------------------------------------------------------------------------
1,800 Oneida-Herkimer, New York, Solid Waste Management
Authority, Solid Waste Revenue Refunding Bonds,
5.50% due 4/01/2013 (g) 1,936
--------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, AMT:
2,500 137th Series, 5.125% due 7/15/2030 (g) 2,544
1,000 141st Series, 4.50% due 9/01/2035 (c) 907
--------------------------------------------------------------------------------------------
12,000 Port Authority of New York and New Jersey, Revenue
Refunding Bonds, AMT, 120th Series, 6%
due 10/15/2032 (i) 12,147
--------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds (JFK International Air Terminal
LLC), AMT, Series 6 (i):
3,000 6.25% due 12/01/2011 3,272
7,830 6.25% due 12/01/2015 8,928
7,000 5.90% due 12/01/2017 7,169
--------------------------------------------------------------------------------------------
2,500 Rensselaer, New York, City School District, COP, 5%
due 6/01/2036 (n) 2,551
--------------------------------------------------------------------------------------------
1,250 Rochester, New York, Housing Authority, Mortgage
Revenue Bonds (Andrews Terrace Apartments Project),
AMT, 4.70% due 12/20/2038 (r) 1,147
--------------------------------------------------------------------------------------------
5,000 Schenectady, New York, IDA, Civic Facility Revenue
Bonds (Union College Project), Series A, 5.45%
due 12/01/2009 (a)(j) 5,287
--------------------------------------------------------------------------------------------
3,000 Schenectady, New York, IDA, Civic Facility Revenue
Refunding Bonds (Union College Project), Series A,
5.625% due 7/01/2011 (a)(j) 3,269
--------------------------------------------------------------------------------------------
1,000 Suffolk County, New York, IDA, Civic Facility Revenue
Refunding Bonds (Dowling College), Series A, 5%
due 6/01/2036 (d) 919
--------------------------------------------------------------------------------------------
4,355 Suffolk County, New York, IDA, IDR (Keyspan -- Port
Jefferson), AMT, 5.25% due 6/01/2027 4,372
--------------------------------------------------------------------------------------------
Suffolk County, New York, IDA, Solid Waste Disposal
Facility, Revenue Refunding Bonds, AMT (a):
4,660 (Ogden Martin System Huntington Project),
6% due 10/01/2010 4,939
5,000 (Ogden Martin System Huntington Project),
6.15% due 10/01/2011 5,408
3,530 (Ogden Martin System Huntington Project),
6.25% due 10/01/2012 3,889
--------------------------------------------------------------------------------------------
1,300 Suffolk County, New York, Public Improvement, GO,
Series B, 4.50% due 11/01/2024 (i) 1,301
--------------------------------------------------------------------------------------------
10,000 Syracuse, New York, IDA, PILOT Revenue Bonds
(Carousel Center Project), AMT, Series A, 5%
due 1/01/2036 (n) 10,036
--------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of
New York Revenue Bonds:
5,000 Series A-1, 5.25% due 6/01/2020 (a) 5,255
13,275 Series A-1, 5.25% due 6/01/2021 (a) 13,924
2,000 Series A-1, 5.25% due 6/01/2022 (a) 2,095
3,700 Series C-1, 5.50% due 6/01/2021 3,914
--------------------------------------------------------------------------------------------
AUGUST 31, 2007 ANNUAL REPORTS 13
Schedule of Investments (continued)
BlackRock MuniHoldings New York Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
============================================================================================
New York (concluded)
--------------------------------------------------------------------------------------------
Triborough Bridge and Tunnel Authority, New York,
Revenue Refunding Bonds (i):
$12,000 5.25% due 11/15/2023 $ 12,561
8,315 5% due 11/15/2032 8,405
2,095 Series A, 5% due 1/01/2012 (j) 2,210
1,500 Series B, 5% due 11/15/2032 1,516
--------------------------------------------------------------------------------------------
Triborough Bridge and Tunnel Authority, New York,
Subordinate Revenue Bonds:
2,465 5% due 11/15/2028 (a) 2,507
6,000 Series A, 5.25% due 11/15/2030 (i) 6,228
--------------------------------------------------------------------------------------------
7,000 Westchester County, New York, IDA, Civic Facility
Revenue Bonds (Purchase College Foundation Housing
Project), Series A, 5.75% due 12/01/2031 (a) 7,546
--------------------------------------------------------------------------------------------
1,795 Yonkers, New York, GO, Series A, 5.75%
due 10/01/2010 (e) 1,922
============================================================================================
Guam -- 1.1%
--------------------------------------------------------------------------------------------
A.B. Won Guam International Airport Authority,
General Revenue Refunding Bonds, AMT, Series C (i):
3,700 5.25% due 10/01/2021 3,806
1,050 5.25% due 10/01/2022 1,080
============================================================================================
Puerto Rico -- 13.0%
--------------------------------------------------------------------------------------------
4,800 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Bonds, 5.25% due 7/01/2017 (e) 5,147
--------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds:
10,000 Series D, 5.75% due 7/01/2012 (j) 10,890
4,700 Series N, 5.25% due 7/01/2039 (e) 5,116
--------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series A (b):
10,280 4.62% due 7/01/2031 (e) 3,145
5,500 4.66% due 7/01/2033 (e) 1,514
9,300 4.66% due 7/01/2034 (a) 2,429
2,200 4.67% due 7/01/2037 (a) 488
--------------------------------------------------------------------------------------------
1,345 Puerto Rico Commonwealth, Public Improvement, GO,
Refunding, Series B, 5.25% due 7/01/2032 1,370
--------------------------------------------------------------------------------------------
500 Puerto Rico Commonwealth, Public Improvement, GO,
Series A, 5.25% due 7/01/2030 511
--------------------------------------------------------------------------------------------
3,570 Puerto Rico Convention Center District Authority, Hotel
Occupancy Tax Revenue Bonds, Series A, 5%
due 7/01/2031 (a) 3,672
--------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, Power
Revenue Bonds (j):
4,750 Series NN, 5.125% due 7/01/2013 5,086
4,850 Series RR, 5% due 7/01/2015 (c) 5,217
4,950 Series RR, 5% due 7/01/2015 (n) 5,325
7,110 Series RR, 5% due 7/01/2015 (e) 7,648
--------------------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $681,487) -- 155.5% 689,365
============================================================================================
============================================================================================
Municipal Bonds Held in Trust(s)
============================================================================================
18,000 Metropolitan Transportation Authority, New York,
Revenue Refunding Bonds, Series A, 5.75%,
due 11/15/2032 (g) 19,257
--------------------------------------------------------------------------------------------
23,000 New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Series A, 5.75%, due 6/15/2011 (i)(j) 24,687
--------------------------------------------------------------------------------------------
9,500 New York City, New York, GO, Series C, 5.75%,
due 3/15/2027 (g) 10,327
--------------------------------------------------------------------------------------------
7,000 New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5%,
due 10/15/2032 (a) 7,299
--------------------------------------------------------------------------------------------
21,000 New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured),
5%, due 11/15/2035 (a) 21,423
--------------------------------------------------------------------------------------------
26,730 Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds (JFK International Air
Terminal), AMT, Series 6, 5.75%, due 12/1/2022 (i) 27,366
--------------------------------------------------------------------------------------------
2,500 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Bonds, Series B, 5.875%, due 7/1/2035 (i) 2,674
--------------------------------------------------------------------------------------------
Total Municipal Bonds Held in Trust
(Cost -- $111,543) -- 25.5% 113,033
============================================================================================
============================================================================================
Shares
Held Short-Term Securities
============================================================================================
1,902 CMA New York Municipal Money Fund, 3.39% (h)(p) 1,902
--------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $1,902) -- 0.4% 1,902
============================================================================================
Total Investments (Cost -- $794,932*) -- 181.4% 804,300
Other Assets Less Liabilities -- 3.0% 13,390
Liability for Trust Certificates, Including Interest
Expense Payable -- (13.8%) (61,205)
Preferred Stock, at Redemption Value -- (70.6%) (313,189)
------------
Net Assets Applicable to Common Stocks -- 100.0% $ 443,296
============
14 AUGUST 31, 2007 ANNUAL REPORTS
Schedule of Investments (concluded)
BlackRock MuniHoldings New York Insured Fund, Inc. (in Thousands)
* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost .............................................. $735,563
========
Gross unrealized appreciation ............................... $ 15,774
Gross unrealized depreciation ............................... (7,740)
--------
Net unrealized appreciation ................................. $ 8,034
========
(a) AMBAC Insured.
(b) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(c) CIFG Insured.
(d) ACA Insured.
(e) FGIC Insured.
(f) FHA Insured.
(g) FSA Insured.
(h) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
CMA New York Municipal Money Fund 1,768 $68
--------------------------------------------------------------------------
(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) XL Capital Insured.
(o) FNMA Collateralized.
(p) Represents the current yield as of August 31, 2007.
(q) All or a portion of security held as collateral in connection with open
financial futures contracts.
(r) GNMA Collateralized.
(s) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bonds transaction in
which the Fund may have acquired the 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 Financial futures contracts sold as of August 31, 2007 were as follows:
--------------------------------------------------------------------------
Number of Expiration Face Unrealized
Contracts Issue Date Value Depreciation
--------------------------------------------------------------------------
395 30-Year U.S. September
Treasury Bonds 2007 $43,149 $(1,004)
--------------------------------------------------------------------------
See Notes to Financial Statements.
AUGUST 31, 2007 ANNUAL REPORTS 15
Statements of Net Assets
BlackRock BlackRock
MuniHoldings MuniHoldings
Florida New York
Insured Insured
As of August 31, 2007 Fund Fund, Inc.
===================================================================================================================================
Assets
-----------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value* .................................. $ 939,683,488 $ 802,397,395
Investments in affiliated securities, at value** ................................... 3,369,907 1,902,395
Interest receivable ................................................................ 14,979,206 10,673,287
Receivable for securities sold ..................................................... 312,359 7,716,050
Receivable for variable margin ..................................................... -- 123,438
Prepaid expenses ................................................................... 11,737 11,105
-------------------------------
Total assets ....................................................................... 958,356,697 822,823,670
-------------------------------
===================================================================================================================================
Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Trust certificates ................................................................. 51,880,627 60,702,600
Payable for securities purchased ................................................... 8,778,899 2,856,273
Interest expense payable ........................................................... 457,684 501,978
Payable to investment adviser ...................................................... 415,070 348,411
Payable for other affiliates ....................................................... 6,652 5,637
Dividends payable to Common Shareholders/Common Stock Shareholders ................. 2,184,724 1,755,323
Custodian bank payable ............................................................. 60,320 8,253
Accrued expenses ................................................................... 178,223 159,608
-------------------------------
Total liabilities .................................................................. 63,962,199 66,338,083
-------------------------------
===================================================================================================================================
Preferred Shares/Stock
-----------------------------------------------------------------------------------------------------------------------------------
Preferred Shares/Stock, at redemption value, par value $.10 per share of AMPS@ at
$25,000 per share liquidation preference*** ..................................... 363,491,099 313,189,453
-------------------------------
===================================================================================================================================
Net Assets Applicable to Common Shares/Stock
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Shares/Stock ....................................... $ 530,903,399 $ 443,296,134
===============================
===================================================================================================================================
Analysis of Net Assets Applicable to Common Shares/Stock
-----------------------------------------------------------------------------------------------------------------------------------
Undistributed investment income -- net ............................................. $ 3,123,218 $ 1,031,070
Accumulated realized capital losses -- net ......................................... (43,849,145) (43,674,215)
Unrealized appreciation -- net ..................................................... 19,362,326 8,363,940
-------------------------------
Total accumulated losses -- net .................................................... (21,363,601) (34,279,205)
-------------------------------
Common Shares/Stock, par value $.10 per share+ ..................................... 3,766,766 3,079,514
Paid-in capital in excess of par ................................................... 548,500,234 474,495,825
-------------------------------
Net Assets ......................................................................... $ 530,903,399 $ 443,296,134
===============================
16 AUGUST 31, 2007 ANNUAL REPORTS
Statements of Net Assets (concluded)
BlackRock BlackRock
MuniHoldings MuniHoldings
Florida New York
Insured Insured
As of August 31, 2007 Fund Fund, Inc.
===================================================================================================================================
Net Assets Value
-----------------------------------------------------------------------------------------------------------------------------------
Net assets value per share of Common Shares/Stock .................................. $ 14.09 $ 14.40
===============================
Market price ....................................................................... $ 12.86 $ 13.53
===============================
*Identified cost for unaffiliated securities ................................. $ 920,321,162 $ 793,029,293
===============================
**Identified cost for affiliated securities ................................... $ 3,369,907 $ 1,902,395
===============================
***Preferred Shares/Stock authorized, issued and outstanding:
Series A Shares/Stock .................................................. 2,095 1,900
===============================
Series B Shares/Stock .................................................. 3,495 1,900
===============================
Series C Shares/Stock .................................................. 3,440 3,040
===============================
Series D Shares/Stock .................................................. 2,160 3,680
===============================
Series E Shares/Stock .................................................. 3,340 2,000
===============================
+Common Shares/Stock issued and outstanding .................................. 37,667,658 30,795,138
===============================
@ Auction Market Preferred Shares/Stock.
See Notes to Financial Statements.
AUGUST 31, 2007 ANNUAL REPORTS 17
Statements of Operations
BlackRock BlackRock
MuniHoldings MuniHoldings
Florida New York
Insured Insured
For the Year Ended August 31, 2007 Fund Fund, Inc.
===================================================================================================================================
Investment Income
-----------------------------------------------------------------------------------------------------------------------------------
Interest ........................................................................... $ 48,053,688 $ 38,563,911
Dividends from affiliates .......................................................... 397,324 67,771
-------------------------------
Total income ....................................................................... 48,451,012 38,631,682
-------------------------------
===================================================================================================================================
Expenses
-----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ........................................................... 5,055,866 4,277,133
Interest expense and fees .......................................................... 1,878,640 2,557,895
Commission fees .................................................................... 928,186 796,288
Accounting services ................................................................ 258,219 233,334
Professional fees .................................................................. 93,522 89,190
Transfer agent fees ................................................................ 87,632 85,450
Printing and shareholder reports ................................................... 60,924 52,225
Custodian fees ..................................................................... 42,950 38,884
Trustees'/Directors' fees and expenses ............................................. 30,143 30,114
Pricing fees ....................................................................... 26,955 28,432
Listing fees ....................................................................... 13,141 10,744
Other .............................................................................. 55,483 66,627
-------------------------------
Total expenses before waiver and reimbursement ..................................... 8,531,661 8,266,316
Waiver and reimbursement of expenses ............................................... (441,339) (376,054)
-------------------------------
Total expenses after waiver and reimbursement ...................................... 8,090,322 7,890,262
-------------------------------
Investment income -- net ........................................................... 40,360,690 30,741,420
-------------------------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
-----------------------------------------------------------------------------------------------------------------------------------
Realized gain on:
Investments -- net ............................................................ 2,169,524 2,108,794
Futures contracts -- net ...................................................... -- 806,228
-------------------------------
Total realized gain -- net ......................................................... 2,169,524 2,915,022
-------------------------------
Change in unrealized appreciation/depreciation on:
Investments -- net ............................................................ (26,868,176) (18,244,131)
Futures contracts -- net ...................................................... -- (752,076)
-------------------------------
Total change in unrealized appreciation/depreciation -- net ........................ (26,868,176) (18,996,207)
-------------------------------
Total realized and unrealized loss -- net .......................................... (24,698,652) (16,081,185)
-------------------------------
===================================================================================================================================
Dividends to Preferred Stock Shareholders/Preferred Shareholders
-----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ........................................................... (13,244,774) (10,569,016)
-------------------------------
Net Increase in Net Assets Resulting from Operations ............................... $ 2,417,264 $ 4,091,219
===============================
See Notes to Financial Statements.
18 AUGUST 31, 2007 ANNUAL REPORTS
Statements of Changes in Net Assets
BlackRock MuniHoldings Florida Insured Fund
For the Year Ended August 31,
-------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
-----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ........................................................... $ 40,360,690 $ 39,348,039
Realized gain -- net ............................................................... 2,169,524 2,573,306
Change in unrealized appreciation/depreciation -- net .............................. (26,868,176) (20,555,330)
Dividends to Preferred Shareholders ................................................ (13,244,774) (11,116,657)
-------------------------------
Net increase in net assets resulting from operations ............................... 2,417,264 10,249,358
-------------------------------
===================================================================================================================================
Dividends to Common Shareholders
-----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ........................................................... (27,007,711) (31,752,842)
-------------------------------
Net decrease in net assets resulting from dividends to Common Shareholders ......... (27,007,711) (31,752,842)
-------------------------------
===================================================================================================================================
Capital Share Transactions
-----------------------------------------------------------------------------------------------------------------------------------
Value of shares issued to Common Shareholders in reinvestment of dividends ......... -- 66,617
-------------------------------
===================================================================================================================================
Net Assets Applicable to Common Shares
-----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets applicable to Common Shares ........................... (24,590,447) (21,436,867)
Beginning of year .................................................................. 555,493,846 576,930,713
-------------------------------
End of year* ....................................................................... $ 530,903,399 $ 555,493,846
===============================
* Undistributed investment income -- net ...................................... $ 3,123,218 $ 3,015,013
===============================
See Notes to Financial Statements.
BlackRock MuniHoldings New York Insured Fund, Inc.
For the Year Ended August 31,
-------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
-----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ........................................................... $ 30,741,420 $ 31,812,639
Realized gain -- net ............................................................... 2,915,022 6,241
Change in unrealized appreciation/depreciation -- net .............................. (18,996,207) (14,930,448)
Dividends to Preferred Stock shareholders .......................................... (10,569,016) (8,834,136)
-------------------------------
Net increase in net assets resulting from operations ............................... 4,091,219 8,054,296
-------------------------------
===================================================================================================================================
Dividends to Common Stock Shareholders
-----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ........................................................... (21,433,416) (25,985,593)
-------------------------------
Net decrease in net assets resulting from dividends to Common Stock shareholders ... (21,433,416) (25,985,593)
-------------------------------
===================================================================================================================================
Stock Transactions
-----------------------------------------------------------------------------------------------------------------------------------
Value of shares issued to Common Stock shareholders in reinvestment of dividends ... -- 156,161
-------------------------------
Net increase in net assets derived from stock transactions ......................... -- 156,161
-------------------------------
===================================================================================================================================
Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets applicable to Common Stock ............................ (17,342,197) (17,775,136)
Beginning of year .................................................................. 460,638,331 478,413,467
-------------------------------
End of year* ....................................................................... $ 443,296,134 $ 460,638,331
===============================
* Undistributed investment income -- net ...................................... $ 1,031,070 $ 2,292,082
===============================
See Notes to Financial Statements.
AUGUST 31, 2007 ANNUAL REPORTS 19
Financial Highlights BlackRock MuniHoldings Florida Insured Fund
For the Year Ended August 31,
The following per share data and ratios have been derived ------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
================================================================================================================================
Per Share Operating Performance
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year .................. $ 14.75 $ 15.32 $ 15.37 $ 15.04 $ 15.41
------------------------------------------------------------
Investment income -- net*** ......................... 1.07 1.04 1.09 1.11 1.15
Realized and unrealized gain (loss) -- net .......... (.66) (.47) .05 .31 (.46)
Less dividends to Preferred Shareholders from
investment income -- net ......................... (.35) (.30) (.18) (.09) (.10)
------------------------------------------------------------
Total from investment operations .................... .06 .27 .96 1.33 .59
------------------------------------------------------------
Less dividends to Common Shareholders from
investment income -- net ......................... (.72) (.84) (1.01) (1.00) (.96)
------------------------------------------------------------
Net asset value, end of year ........................ $ 14.09 $ 14.75 $ 15.32 $ 15.37 $ 15.04
============================================================
Market price per share, end of year ................. $ 12.86 $ 14.37 $ 15.75 $ 14.84 $ 14.08
============================================================
================================================================================================================================
Total Investment Return*
--------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .................. .59% 2.10% 6.49% 9.43% 4.17%
============================================================
Based on market price per share ..................... (5.76%) (3.24%) 13.39% 12.86% 2.51%
============================================================
================================================================================================================================
Ratios Based on Average Net Assets Applicable to Common Shares
--------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and reimbursement and
excluding interest expense and fees** ............ 1.12% 1.12% 1.11% 1.10% 1.10%
============================================================
Total expenses, net of waiver and reimbursement** ... 1.46% 1.38% 1.35% 1.24% 1.26%
============================================================
Total expenses** .................................... 1.54% 1.46% 1.41% 1.31% 1.33%
============================================================
Total investment income -- net** .................... 7.30% 7.08% 7.11% 7.23% 7.40%
============================================================
Amount of dividends to Preferred Shareholders ....... 2.40% 2.00% 1.15% .60% .65%
============================================================
Investment income -- net, to Common Shareholders .... 4.90% 5.08% 5.96% 6.63% 6.75%
============================================================
================================================================================================================================
Ratios Based on Average Net Assets Applicable to Preferred Shares
--------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Shareholders ................. 3.62% 3.06% 1.82% .95% 1.06%
============================================================
================================================================================================================================
Supplemental Data
--------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Shares, end of year
(in thousands) ................................... $530,903 $555,494 $576,931 $578,509 $565,993
============================================================
Preferred Shares outstanding at liquidation
preference, end of year (in thousands) ........... $363,250 $363,250 $363,250 $363,250 $363,250
============================================================
Portfolio turnover .................................. 22% 43% 26% 20% 23%
============================================================
================================================================================================================================
Leverage
--------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ........................... $ 2,462 $ 2,529 $ 2,588 $ 2,593 $ 2,558
============================================================
================================================================================================================================
Dividends Per Share on Preferred Shares Outstanding
--------------------------------------------------------------------------------------------------------------------------------
Series A -- Investment income -- net ................ $ 913 $ 755 $ 441 $ 233 $ 252
============================================================
Series B -- Investment income -- net ................ $ 909 $ 778 $ 451 $ 237 $ 267
============================================================
Series C -- Investment income -- net ................ $ 914 $ 780 $ 461 $ 237 $ 252
============================================================
Series D -- Investment income -- net ................ $ 904 $ 743 $ 462 $ 243 $ 273
============================================================
Series E -- Investment income -- net ................ $ 915 $ 757 $ 463 $ 241 $ 276
============================================================
* Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
** Do not reflect the effect of dividends to Preferred Shareholders.
*** Based on average shares outstanding.
See Notes to Financial Statements.
20 AUGUST 31, 2007 ANNUAL REPORTS
Financial Highlights BlackRock MuniHoldings New York Insured Fund, Inc.
For the Year Ended August 31,
The following per share data and ratios have been derived ------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
================================================================================================================================
Per Share Operating Performance
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year .................. $ 14.96 $ 15.54 $ 15.41 $ 15.19 $ 15.66
------------------------------------------------------------
Investment income -- net*** ......................... 1.00 1.03 1.04 1.05 1.09
Realized and unrealized gain (loss) -- net .......... (.52) (.48) .21 .18 (.58)
Less dividends to Preferred Stock shareholders from
investment income -- net ......................... (.34) (.29) (.17) (.08) (.08)
------------------------------------------------------------
Total from investment operations .................... .14 .26 1.08 1.15 .43
------------------------------------------------------------
Less dividends to Common Stock shareholders from
investment income -- net ......................... (.70) (.84) (.95) (.93) (.90)
------------------------------------------------------------
Net asset value, end of year ........................ $ 14.40 $ 14.96 $ 15.54 $ 15.41 $ 15.19
============================================================
Market price per share, end of year ................. $ 13.53 $ 14.62 $ 15.28 $ 14.10 $ 13.79
============================================================
================================================================================================================================
Total Investment Return*
--------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .................. 1.12% 1.98% 7.63% 8.36% 3.32%
============================================================
Based on market price per share ..................... (2.78%) 1.36% 15.66% 9.21% 2.22%
============================================================
================================================================================================================================
Ratios Based on Average Net Assets Applicable to Common Stock
--------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and reimbursement and
excluding interest expense and fees** ............ 1.15% 1.15% 1.14% 1.14% 1.13%
============================================================
Total expenses, net of waiver and reimbursement
expenses** ....................................... 1.71% 1.65% 1.52% 1.43% 1.43%
============================================================
Total expenses** .................................... 1.79% 1.73% 1.59% 1.50% 1.51%
============================================================
Total investment income -- net** .................... 6.65% 6.94% 6.71% 6.80% 6.96%
============================================================
Amount of dividends to Preferred Stock shareholders . 2.29% 1.93% 1.09% .55% .68%
============================================================
Investment income -- net, to Common Stock shareholders 4.36% 5.01% 5.62% 6.25% 6.28%
============================================================
================================================================================================================================
Ratios Based on Average Net Assets Applicable to Preferred Stock
--------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Stock shareholders ........... 3.35% 2.82% 1.66% .83% 1.05%
============================================================
================================================================================================================================
Supplemental Data
--------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end of year
(in thousands) ................................... $443,296 $460,638 $478,413 $474,357 $467,512
============================================================
Preferred Stock outstanding at liquidation
preference, end of year (in thousands) ........... $313,000 $313,000 $313,000 $313,000 $313,000
============================================================
Portfolio turnover .................................. 24% 47% 33% 31% 50%
============================================================
================================================================================================================================
Leverage
--------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ........................... $ 2,416 $ 2,472 $ 2,528 $ 2,516 $ 2,494
============================================================
================================================================================================================================
Dividends Per Share on Preferred Stock Outstanding
--------------------------------------------------------------------------------------------------------------------------------
Series A -- Investment income -- net ................ $ 837 $ 689 $ 409 $ 197 $ 247
============================================================
Series B -- Investment income -- net ................ $ 834 $ 678 $ 385 $ 182 $ 236
============================================================
Series C -- Investment income -- net ................ $ 849 $ 715 $ 432 $ 201 $ 258
============================================================
Series D -- Investment income -- net ................ $ 855 $ 728 $ 434 $ 238 $ 287
============================================================
Series E -- Investment income -- net ................ $ 834 $ 692 $ 389 $ 198 $ 256
============================================================
* Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
** Do not reflect the effect of dividends to Preferred Stock Shareholders.
*** Based on average shares outstanding.
See Notes to Financial Statements.
AUGUST 31, 2007 ANNUAL REPORTS 21
Notes to Financial Statements
1. Significant Accounting Policies:
BlackRock MuniHoldings Florida Insured Fund and BlackRock MuniHoldings New York
Insured Fund, Inc. (the "Funds" or individually the "Fund") are registered under
the Investment Company Act of 1940, as amended, as non-diversified, closed-end
management investment companies. The Funds' 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. The Funds determine and make available for publication the net
asset value of their Common Shares/Stock on a daily basis. The Funds' Common
Shares/Stock are listed on the New York Stock Exchange under the symbols MFL and
MHN, respectively. The following is a summary of significant accounting policies
followed by the Funds.
(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 Funds under the general direction
of the Boards of Trustees/Directors. Such valuations and procedures are reviewed
periodically by the Boards of Trustees/Directors of the Funds. 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.
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 Boards of Trustees/Directors of the Funds.
(b) Derivative financial instruments -- Each 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. The counterparty for
certain instruments may pledge cash or securities as collateral.
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 -- Each Fund may write covered call options and purchase call and
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.
o Forward interest rate swaps -- Each 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.
22 AUGUST 31, 2007 ANNUAL REPORTS
Notes to Financial Statements (continued)
o Swaps -- Each 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 Statements
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 Funds invest 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 a Fund, or an agent on behalf of the Fund, transfers municipal
securities. A TOB typically issues two classes of beneficial interests:
short-term floating rate certificates, which are sold to third party investors,
and residual certificates, which are generally issued to the Fund which made the
transfer or to affiliates of the Fund. The Fund's transfer of the municipal
securities to a TOB do 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 Funds' schedules of
investments and the proceeds from the transactions are reported as a liability
for trust certificates of the Funds. 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 Funds 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 a 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 Funds
include the right of the Funds (1) to cause the holders of a proportional share
of 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
Funds. At August 31, 2007, the aggregate value of the underlying municipal
securities transferred to TOBs and the related liability for trust certificates
were:
--------------------------------------------------------------------------------
Underlying
Liability Municipal
for Range of Bonds
Trust Interest Transferred
Certificates Rates to TOBs
--------------------------------------------------------------------------------
BlackRock MuniHoldings 3.699%-
Florida Insured Fund ........ $ 51,880,627 3.763% $106,260,729
BlackRock MuniHoldings
New York Insured 3.682%-
Fund, Inc. .................. $ 60,702,600 3.714% $113,033,072
--------------------------------------------------------------------------------
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 Funds'
investments in TOB Residuals likely will adversely affect the Funds' investment
income -- net and distributions to shareholders. Fluctuations in the market
value of municipal securities deposited into the TOB may adversely affect the
Funds' net asset value per share.
While the Funds' investment policies and restrictions expressly permit
investments in inverse floating rate securities such as TOB Residuals, they
generally do not allow the Funds to borrow money for purposes of making
investments. The Funds' management believes that the Funds' restrictions on
borrowings do not apply to the secured borrowings deemed to have occurred for
accounting purposes.
(d) Income taxes -- It is each 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.
(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 Funds amortize all
premiums and discounts on debt securities.
AUGUST 31, 2007 ANNUAL REPORTS 23
Notes to Financial Statements (continued)
(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) Bank overdraft -- Each Fund recorded a bank overdraft which resulted from
management estimates of available cash.
(h) 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
the last net asset value calculation in the first required financial statement
reporting period for fiscal years beginning after December 15, 2006. The impact
on the Funds' 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 Funds' financial statements, if any, has not been
determined.
In addition, in February 2007, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is evaluating
the implications of FAS 159 and its impact on the Funds' financial statements,
if any, has not been determined.
(i) Reclassifications:
BlackRock MuniHoldings Florida Insured Fund
U.S. generally accepted accounting principles require that certain components of
net assets be adjusted to reflect permanent differences between financial and
tax reporting. Accordingly, during the current year, $22,583,704 has been
reclassified between paid-in capital in excess of par and accumulated net
realized capital losses as a result of permanent differences attributable to
expiration of capital loss carryforwards. This reclassification has no effect on
net assets or net asset values per share.
BlackRock MuniHoldings New York Insured Fund, Inc.
U.S. generally accepted accounting principles require that certain components of
net assets be adjusted to reflect permanent differences between financial and
tax reporting. Accordingly, during the current year, $566,530 has been
reclassified between paid-in capital in excess of par and accumulated net
realized capital losses as a result of permanent differences attributable to
expiration of capital loss carryforwards. This reclassification has no effect on
net assets or net asset values per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
On September 29, 2006, BlackRock, Inc. ("BlackRock") and Merrill Lynch & Co.,
Inc. ("Merrill Lynch") combined Merrill Lynch's investment management business,
Merrill Lynch Investment Managers, L.P. ("MLIM"), and its affiliates, including
Fund Asset Management, L.P. ("FAM"), with BlackRock, Inc. to create a new
independent company. Merrill Lynch has a 49.8% economic interest and a 45%
voting interest in the combined company and The PNC Financial Services Group,
Inc. has approximately a 34% economic and voting interest. The new company
operates under the BlackRock name and is governed by a board of directors with a
majority of independent members.
On July 31, 2006 and August 15, 2006, shareholders of BlackRock MuniHoldings
Florida Insured Fund and BlackRock MuniHoldings New York Insured Fund, Inc.,
respectively, approved a new Investment Advisory Agreement with BlackRock
Advisors, Inc. BlackRock Advisors, Inc. was reorganized into a limited liability
company and renamed BlackRock Advisors, LLC (the "Manager"). The Investment
Advisory Agreement between each Fund and the Manager became effective on
September 29, 2006. Prior to September 29, 2006, FAM was the manager. The
general partner of FAM is an indirect, wholly owned subsidiary of Merrill Lynch,
which is the limited partner.
24 AUGUST 31, 2007 ANNUAL REPORTS
Notes to Financial Statements (continued)
The Manager is responsible for the management of each Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of each Fund. For such services, each Fund
pays a monthly fee at an annual rate of .55% of the Fund's average daily net
assets, including proceeds from the issuance of Preferred Shares/Stock. The
Manager (and previously FAM) has agreed to reimburse its management fee by the
amount of management fees each Fund pays to the Manager (and previously FAM)
indirectly through its investments described below:
--------------------------------------------------------------------------------
For the For the
Period Period Sept.
Sept. 1, 2006 30, 2006
to Sept. 29, to Aug. 31,
2006 Reim- 2007 Reim-
bursement bursement by
Investment by FAM the Manager
--------------------------------------------------------------------------------
BlackRock
MuniHoldings CMA Florida
Florida Insured Municipal
Fund ................. Money Fund $9,587 $58,222
BlackRock
MuniHoldings CMA New York
New York Insured Municipal
Fund, Inc. ........... Money Fund $ 58 $ 8,838
--------------------------------------------------------------------------------
In addition, the Manager has agreed to reimburse its management fee on the
proceeds of Preferred Shares/Stock that exceed 35% of each Fund's total net
assets. For the year ended August 31, 2007, FAM and the Manager earned and
waived the following:
--------------------------------------------------------------------------------
For the Period For the Period
Sept. 1, to Sept. 30, 2006 to
Sept. 29, 2006 Aug. 31, 2007
------------------------ ------------------------
Earned Waived Earned Waived
by by by the by the
FAM FAM Manager Manager
--------------------------------------------------------------------------------
BlackRock
MuniHoldings
Florida Insured Fund ... $ 429,126 $ 29,982 $4,626,740 $ 343,548
BlackRock
MuniHoldings
New York Insured
Fund, Inc. ............. $ 361,539 $ 30,263 $3,915,594 $ 336,895
--------------------------------------------------------------------------------
For the year ended August 31, 2007, the Funds reimbursed FAM and the Manager for
certain accounting services. The reimbursements were as follows:
--------------------------------------------------------------------------------
FAM Manager
--------------------------------------------------------------------------------
BlackRock MuniHoldings
Florida Insured Fund ......................... $ 2,445 $15,593
BlackRock MuniHoldings
New York Insured Fund, Inc. .................. $ 2,057 $13,199
--------------------------------------------------------------------------------
In addition, the Manager has entered into a separate sub-advisory agreement with
BlackRock Investment Management, LLC ("BIM"), an affiliate of the Manager, with
respect to each Fund, under which the Manager pays BIM for services it provides
a monthly fee that is a percentage of the management fee paid by each Fund to
the Manager.
Prior to September 29, 2006, certain officers and/or trustees/directors of the
Funds were officers and/or directors of FAM, Merrill Lynch, and/or MLIM.
Commencing September 29, 2006, certain officers and/or trustees/directors of the
Funds are officers and/or directors of BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended August 31, 2007 were as follows:
--------------------------------------------------------------------------------
BlackRock BlackRock
MuniHoldings MuniHoldings
Florida Insured New York Insured
Fund Fund, Inc.
--------------------------------------------------------------------------------
Total Purchases .................. $240,737,778 $199,591,317
Total Sales ...................... $206,459,268 $195,178,993
--------------------------------------------------------------------------------
4. Share/Stock Transactions:
BlackRock MuniHoldings Florida Insured Fund is authorized to issue an unlimited
number of shares of beneficial interest, including Preferred Shares, par value
$.10 per share, all of which were initially classified as Common Shares. The
Board of Trustees is authorized, however, to reclassify any unissued shares of
beneficial interest without the approval of holders of Common Shares.
BlackRock MuniHoldings New York Insured Fund, Inc. 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 Shares/Stock
BlackRock MuniHoldings Florida Insured Fund
Shares issued and outstanding during the year ended August 31, 2007 remained
constant and increased by 4,505 as a result of dividend reinvestments for the
year ended August 31, 2006.
AUGUST 31, 2007 ANNUAL REPORTS 25
Notes to Financial Statements (concluded)
BlackRock MuniHoldings New York Insured Fund, Inc.
Shares issued and outstanding during the year ended August 31, 2007 remained
constant and increased by 10,523 as a result of dividend reinvestment for the
year ended August 31, 2006.
Preferred Shares/Stock
Auction Market Preferred Shares/Stock are redeemable shares of Preferred
Shares/Stock of the Funds, with a liquidation preference of $25,000 per share
plus accrued and unpaid dividends that entitle their holders to receive cash
dividends at an annual rate that may vary for the successive dividend periods.
The yields in effect at August 31, 2007 were as follows:
--------------------------------------------------------------------------------
BlackRock BlackRock
MuniHoldings MuniHoldings
Florida Insured New York Insured
Fund Fund, Inc.
--------------------------------------------------------------------------------
Series A ............................. 3.95% 3.29%
Series B ............................. 4.01% 3.75%
Series C ............................. 4.00% 3.40%
Series D ............................. 3.54% 3.40%
Series E ............................. 3.98% 3.70%
--------------------------------------------------------------------------------
Each 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 year ended August 31, 2007, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, an affiliate of the Manager earned commissions as follows:
--------------------------------------------------------------------------------
Commissions
--------------------------------------------------------------------------------
BlackRock MuniHoldings
Florida Insured Fund ..................................... $449,188
BlackRock MuniHoldings
New York Insured Fund, Inc. .............................. $302,025
--------------------------------------------------------------------------------
5. Distributions to Shareholders:
Each Fund paid a tax-exempt income dividend to holders of Common Shares/Stock in
the amount of $.058000 per share and $.057000 per share relating to BlackRock
MuniHoldings Florida Insured Fund and BlackRock MuniHoldings New York Insured
Fund, Inc., respectively, on October 1, 2007 to shareholders of record on
September 14, 2007.
BlackRock MuniHoldings Florida Insured Fund
The tax character of distributions paid during the fiscal years ended August 31,
2007 and August 31, 2006 was as follows:
--------------------------------------------------------------------------------
8/31/2007 8/31/2006
--------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income .................... $40,252,485 $42,869,499
-------------------------------
Total distributions .................... $40,252,485 $42,869,499
===============================
As of August 31, 2007, the components of accumulated losses on a tax basis were
as follows:
-----------------------------------------------------------------------------
Undistributed tax-exempt income -- net .................. $ 1,649,951
Undistributed long-term capital gains -- net ............ --
------------
Total undistributed earnings -- net ..................... 1,649,951
Capital loss carryforward ............................... (36,221,314)*
Unrealized gains -- net ................................. 13,207,762**
------------
Total accumulated losses -- net ......................... $(21,363,601)
============
* On August 31, 2007, the Fund had a net capital loss carryforward of
$36,221,314, of which $9,834,324 expires in 2008, $16,563,861 expires in
2009, $1,836,991 expires in 2012 and $7,986,138 expires in 2013. This
amount will be available to offset like amounts of any future taxable
gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and the difference between the book and tax treatment of residual
interests in tender option bond trusts.
BlackRock MuniHoldings New York Insured Fund, Inc.
The tax character of distributions paid during the fiscal years ended August 31,
2007 and August 31, 2006 was as follows:
--------------------------------------------------------------------------------
8/31/2007 8/31/2006
--------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income .................... $32,002,432 $34,819,729
-------------------------------
Total distributions .................... $32,002,432 $34,819,729
===============================
As of August 31, 2007, the components of accumulated losses on a tax basis were
as follows:
-----------------------------------------------------------------------------
Undistributed tax-exempt income -- net .................. $ 1,396,224
Undistributed long-term capital gains -- net ............ --
------------
Total undistributed earnings -- net ..................... 1,396,224
Capital loss carryforward ............................... (39,459,874)*
Unrealized gains -- net ................................. 3,784,445**
------------
Total accumulated losses -- net ......................... $(34,279,205)
============
* On August 31, 2007, the Fund had a net capital loss carryforward of
$39,459,874, of which $3,509,287 expires in 2008, $17,055,889 expires in
2009, $15,054,033 expires in 2013, $1,057,997 expires in 2014 and
$2,782,668 expires in 2015. This amount will be available to offset like
amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income
securities, the realization for tax purposes of unrealized gains (losses)
on certain futures contracts, the deferral of post-October capital losses
for tax purposes and the difference between the book and tax treatment of
residual interests in tender option bond trusts.
26 AUGUST 31, 2007 ANNUAL REPORTS
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees/ Directors of BlackRock MuniHoldings
Florida Insured Fund and BlackRock MuniHoldings New York Insured Fund, Inc.:
We have audited the accompanying statements of net assets, including the
schedules of investments, of BlackRock MuniHoldings Florida Insured Fund and of
BlackRock MuniHoldings New York Insured Fund, Inc. (the "Funds"), as of August
31, 2007, and the related statements of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement.The Funds
are not required to have, nor were we engaged to perform, audits of their
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Funds' internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2007 by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the respective financial
positions of BlackRock MuniHoldings Florida Insured Fund and of BlackRock
MuniHoldings New York Insured Fund, Inc. as of August 31, 2007, the results of
their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and their financial highlights
for each of the five years in the period then ended, in conformity with
accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
October 26, 2007
Fund Certification (Unaudited)
In February 2007, BlackRock MuniHoldings Florida Insured Fund and BlackRock
MuniHoldings New York Insured Fund, Inc. filed their Chief Executive Officer
Certification for the prior year with the New York Stock Exchange pursuant to
Section 303A.12(a) of the New York Stock Exchange Corporate Governance Listing
Standards.
The Funds' Chief Executive Officer and Chief Financial Officer Certifications
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 were filed with the
Funds' Form N-CSR and are available on the Securities and Exchange Commission's
Web site at http://www.sec.gov.
AUGUST 31, 2007 ANNUAL REPORTS 27
Automatic Dividend Reinvestment Plan
How the Plan Works -- The Funds offer a Dividend Reinvestment Plan (the "Plan")
under which income and capital gains dividends paid by the Fund are
automatically reinvested in additional shares of Common Shares/Stock of the
Fund. The Plan is administered on behalf of the shareholders by The Bank of New
York (the "Plan Agent"). Under the Plan, whenever a Fund declares a dividend,
participants in the Plan will receive the equivalent in shares of Common
Shares/Stock of the Fund. The Plan Agent will acquire the shares for the
participant's account either (i) through receipt of additional unissued but
authorized shares of the Fund ("newly issued shares") or (ii) by purchase of
outstanding shares of Common Shares/Stock on the open market on the New York
Stock Exchange or elsewhere. If, on the dividend payment date, the Fund's net
asset value per share is equal to or less than the market price per share plus
estimated brokerage commissions (a condition often referred to as a "market
premium"), the Plan Agent will invest the dividend amount in newly issued
shares. If a Fund's net asset value per share is greater than the market price
per share (a condition often referred to as a "market discount"), the Plan Agent
will invest the dividend amount by purchasing on the open market additional
shares. If the Plan Agent is unable to invest the full dividend amount in open
market purchases, or if the market discount shifts to a market premium during
the purchase period, the Plan Agent will invest any uninvested portion in newly
issued shares. The shares acquired are credited to each shareholder's account.
The amount credited is determined by dividing the dollar amount of the dividend
by either (i) when the shares are newly issued, the net asset value per share on
the date the shares are issued or (ii) when shares are purchased in the open
market, the average purchase price per share.
Participation in the Plan -- Participation in the Plan is automatic, that is, a
shareholder is automatically enrolled in the Plan when he or she purchases
shares of Common Shares/Stock of the Fund unless the shareholder specifically
elects not to participate in the Plan. Shareholders who elect not to participate
will receive all dividend distributions in cash. Shareholders who do not wish to
participate in the Plan must advise the Plan Agent in writing (at the address
set forth below) that they elect not to participate in the Plan. Participation
in the Plan is completely voluntary and may be terminated or resumed at any time
without penalty by writing to the Plan Agent.
Benefits of the Plan -- The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Fund. The Plan
promotes a long-term strategy of investing at a lower cost. All shares acquired
pursuant to the Plan receive voting rights. In addition, if the market price
plus commissions of a Fund's shares is above the net asset value, participants
in the Plan will receive shares of the Fund for less than they could otherwise
purchase them and with a cash value greater than the value of any cash
distribution they would have received. However, there may not be enough shares
available in the market to make distributions in shares at prices below the net
asset value. Also, since the Funds do not redeem shares, the price on resale may
be more or less than the net asset value.
Plan Fees -- There are no enrollment fees or brokerage fees for participating in
the Plan. The Plan Agent's service fees for handling the reinvestment of
distributions are paid for by the Funds. However, brokerage commissions may be
incurred when a Fund purchases shares on the open market and shareholders will
pay a pro rata share of any such commissions.
Tax Implications -- The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income tax that may
be payable (or required to be withheld) on such dividends. Therefore, income and
capital gains may still be realized even though shareholders do not receive
cash. The value of shares acquired pursuant to the Plan will generally be
excluded from gross income to the extent that the cash amount reinvested would
be excluded from gross income. If, when a Fund's shares are trading at a market
premium, the Fund issues shares pursuant to the Plan that have a greater fair
market value than the amount of cash reinvested, it is possible that all or a
portion of the discount from the market value (which may not exceed 5% of the
fair market value of the Fund's shares) could be viewed as a taxable
distribution. If the discount is viewed as a taxable distribution, it is also
possible that the taxable character of this discount would be allocable to all
the shareholders, including shareholders who do not participate in the Plan.
Thus, shareholders who do not participate in the Plan might be required to
report as ordinary income a portion of their distributions equal to their
allocable share of the discount.
Contact Information -- All correspondence concerning the Plan, including any
questions about the Plan, should be directed to the Plan Agent at The Bank of
New York, Church Street Station, P.O. Box 11258, New York, NY 10286-1258,
Telephone: 800-432-8224.
28 AUGUST 31, 2007 ANNUAL REPORTS
Officers and Trustees or Directors
Number of
Funds and
Portfolios in
Fund Complex Other Public
Position(s) Length of Overseen by Directorships
Name, Address Held with Time Trustee or Held by Trustee
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Director or Director
====================================================================================================================================
Interested Trustee or Director
------------------------------------------------------------------------------------------------------------------------------------
Robert C. Doll, Jr.* Fund 2005 to Vice Chairman and Director of BlackRock, 120 Funds None
P.O. Box 9011 President present Inc., Global Chief Investment Officer for 161 Portfolios
Princeton, NJ 08543-9011 and Trustee Equities, Chairman of the BlackRock Retail
1954 or Director Operating Committee, and member of the
BlackRock Executive Committee since 2006;
President of the funds advised by Merrill
Lynch Investment Managers, L.P. ("MLIM") and
its affiliates ("MLIM/FAM-advised funds")
from 2005 to 2006 and Chief Investment
Officer thereof from 2001 to 2006; President
of MLIM and Fund Asset Management, L.P.
("FAM") from 2001 to 2006; Co-Head (Americas
Region) thereof from 2000 to 2001 and Senior
Vice President from 1999 to 2001; President
and Director of Princeton Services, Inc.
("Princeton Services") and President of
Princeton Administrators, L.P. ("Princeton
Administrators") from 2001 to 2006; Chief
Investment Officer of OppenheimerFunds, Inc.
in 1999 and Executive Vice President thereof
from 1991 to 1999.
---------------------------------------------------------------------------------------------------------
* Mr. Doll is a trustee, director or member of an advisory board of certain other investment
companies for which BlackRock Advisors, LLC and its affiliates act as investment adviser. Mr. Doll
is an "interested person," as defined in the Investment Company Act, of the Fund based on his
current and former positions with BlackRock, Inc. and its affiliates. Trustees or Directors serve
until their resignation, removal or death, or until December 31 of the year in which they turn 72.
As Fund President, Mr. Doll serves at the pleasure of the Boards of Trustees or Directors.
AUGUST 31, 2007 ANNUAL REPORTS 29
Officers and Trustees or Directors (continued)
Number of
Funds and
Portfolios in
Fund Complex Other Public
Position(s) Length of Overseen by Directorships
Name, Address Held with Time Trustee or Held by Trustee
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Director or Director
====================================================================================================================================
Independent Trustees or Directors*
------------------------------------------------------------------------------------------------------------------------------------
Ronald W. Forbes** Trustee 1997 to Professor Emeritus of Finance, School of 46 Funds None
P.O. Box 9095 or Director present Business, State University of New York at 48 Portfolios
Princeton, NJ 08543-9095 Albany since 2000 and Professor thereof from
1940 1989 to 2000; International Consultant,
Urban Institute, Washington, D.C. from 1995
to 1999.
------------------------------------------------------------------------------------------------------------------------------------
Cynthia A. Montgomery Trustee 1997 to Professor, Harvard Business School since 46 Funds Newell Rubbermaid,
P.O. Box 9095 or Director present 1989; Associate Professor, J.L. Kellogg 48 Portfolios Inc. (manufacturing)
Princeton, NJ 08543-9095 Graduate School of Management, Northwestern
1952 University from 1985 to 1989; Associate
Professor, Graduate School of Business
Administration, University of Michigan from
1979 to 1985; Director, Harvard Business
School Publishing since 2005; Director,
McLean Hospital since 2005.
------------------------------------------------------------------------------------------------------------------------------------
Jean Margo Reid Trustee 2004 to Self-employed consultant since 2001; Counsel 46 Funds None
P.O. Box 9095 or Director present of Alliance Capital Management (investment 48 Portfolios
Princeton, NJ 08543-9095 adviser) in 2000; General Counsel, Director
1945 and Secretary of Sanford C. Bernstein & Co.,
Inc. (investment adviser/broker-dealer) from
1997 to 2000; Secretary, Sanford C.
Bernstein Fund, Inc. from 1994 to 2000;
Director and Secretary of SCB, Inc. since
1998; Director and Secretary of SCB
Partners, Inc. since 2000; and Director of
Covenant House from 2001 to 2004.
------------------------------------------------------------------------------------------------------------------------------------
Roscoe S. Suddarth Trustee 2000 to President, Middle East Institute, from 1995 46 Funds None
P.O. Box 9095 or Director present to 2001; Foreign Service Officer, United 48 Portfolios
Princeton, NJ 08543-9095 States Foreign Service, from 1961 to 1995
1935 and Career Minister from 1989 to 1995;
Deputy Inspector General, U.S. Department of
State, from 1991 to 1994; U.S. Ambassador to
the Hashemite Kingdom of Jordan from 1987 to
1990.
------------------------------------------------------------------------------------------------------------------------------------
Richard R. West Trustee 1997 to Professor of Finance from 1984 to 1995, Dean 46 Funds Bowne & Co., Inc.
P.O. Box 9095 or Director present from 1984 to 1993 and since 1995 Dean 48 Portfolios (financial printers);
Princeton, NJ 08543-9095 Emeritus of New York University's Leonard N. Vornado Realty
1938 Stern School of Business Administration. Trust (real estate
company);
Alexander's, Inc.
(real estate company)
---------------------------------------------------------------------------------------------------------
* Trustees or Directors serve until their resignation, removal or death, or until December 31 of the
year in which they turn 72. ** Chairman of each Board of Trustees or Directors and the Audit
Committee.
------------------------------------------------------------------------------------------------------------------------------------
30 AUGUST 31, 2007 ANNUAL REPORTS
Officers and Trustees or Directors (concluded)
Position(s) Length of
Name, Address Held with Time
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Fund Officers*
------------------------------------------------------------------------------------------------------------------------------------
Donald C. Burke Vice 1997 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
P.O. Box 9011 President present Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P. ("FAM")
Princeton, NJ 08543-9011 and and in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and Treasurer
1960 Treasurer 1999 to thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990 to 1997.
present
------------------------------------------------------------------------------------------------------------------------------------
Karen Clark Fund Chief 2007 to Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
P.O. Box 9011 Compliance present BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to
Princeton, NJ 08543-9011 Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors,
1965 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998
to 2001; and Branch Chief, Division of Investment Management and Office of
Compliance Inspections and Examinations, U.S. Securities and Exchange
Commission, from 1993 to 1998.
------------------------------------------------------------------------------------------------------------------------------------
Alice A. Pellegrino Fund 2004 to Director of BlackRock, Inc. from 2006 to 2007; Director (Legal Advisory) of MLIM
P.O. Box 9011 Secretary 2007 from 2002 to 2006; Vice President of MLIM from 1999 to 2002; Attorney associated
Princeton, NJ 08543-9011 with MLIM from 1997 to 1999; Secretary of MLIM, FAM, FAM Distributors, Inc. and
1960 Princeton Services from 2004 to 2006.
------------------------------------------------------------------------------------------------------------------------------------
Howard Surloff Fund 2007 to Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at
P.O. Box 9011 Secretary present BlackRock, Inc. since 2006; General Counsel (U.S.), Goldman Sachs Asset
Princeton, NJ 08543-9011 Management from 1993 to 2006.
1965
------------------------------------------------------------------------------------------------------
* Officers of the Fund serve at the pleasure of the Boards of Trustees or Directors.
------------------------------------------------------------------------------------------------------------------------------------
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Shares or Stock:
The Bank of New York
101 Barclay Street -- 11 East
New York, NY 10286
Preferred Shares or Stock:
The Bank of New York
101 Barclay Street -- 7 West
New York, NY 10286
Investment Objectives
BlackRock MuniHoldings Florida Insured Fund seeks to provide shareholders with
current income exempt from federal income tax. The Fund also seeks to offer
shareholders the opportunity to own shares, the value of which is exempt from
Florida intangible personal property tax. The Fund seeks to achieve its
investment objective 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 and which
enables shares of the Fund to be exempt from Florida intangible personal
property tax.
BlackRock MuniHoldings New York Insured Fund, Inc. seeks to provide shareholders
with current income exempt from federal income taxes and New York State and New
York City personal income taxes 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 and
New York State and New York City personal income taxes.
AUGUST 31, 2007 ANNUAL REPORTS 31
Proxy Results BlackRock MuniHoldings Florida Insured Fund
During the six-month period ended August 31, 2007, the Common and Auction Market
Preferred (Series A - E) Shareholders of BlackRock MuniHoldings Florida Insured
Fund voted on the following proposal, which was approved at an annual
shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Trustees to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted are
as follows:
----------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
----------------------------------------------------------------------------------------------
To elect the Fund's Trustees: G. Nicholas Beckwith, III 34,979,751 701,591
Richard E. Cavanagh 34,970,321 711,021
Richard S. Davis 34,979,751 701,591
Kent Dixon 34,977,451 703,891
Kathleen F. Feldstein 34,968,154 713,188
James T. Flynn 34,978,401 702,941
Henry Gabbay 35,133,651 547,691
Jerrold B. Harris 34,977,359 703,983
R. Glenn Hubbard 34,971,204 710,138
Karen P. Robards 34,976,351 704,991
Robert S. Salomon, Jr. 34,978,451 702,891
----------------------------------------------------------------------------------------------
During the six-month period ended August 31, 2007, the Auction Market Preferred
(Series A - E) Shareholders of BlackRock MuniHoldings Florida Insured Fund voted
on the following proposal, which was approved at an annual shareholders' meeting
on August 16, 2007. A description of the proposal and number of shares voted for
each Trustee are as follows:
----------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
----------------------------------------------------------------------------------------------
To elect the Fund's Trustees: Frank J. Fabozzi and
W. Carl Kester 13,964 241
----------------------------------------------------------------------------------------------
32 AUGUST 31, 2007 ANNUAL REPORTS
Proxy Results BlackRock MuniHoldings New York Insured Fund, Inc.
During the six-month period ended August 31, 2007, the Common Stock and Auction
Market Preferred Stock (Series A - E) Shareholders of BlackRock MuniHoldings New
York Insured Fund, Inc. voted on the following proposal, which was approved at
an annual shareholders' meeting on August 16, 2007. This proposal was part of
the reorganization of the Fund's Board of Directors to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted are
as follows:
----------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
----------------------------------------------------------------------------------------------
To elect the Fund's Directors: G. Nicholas Beckwith, III 27,310,820 1,682,900
Richard E. Cavanagh 27,310,316 1,683,404
Richard S. Davis 27,304,620 1,689,100
Kent Dixon 27,307,786 1,685,934
Kathleen F. Feldstein 27,282,482 1,711,238
James T. Flynn 27,282,478 1,711,242
Henry Gabbay 27,357,630 1,636,090
Jerrold B. Harris 27,310,320 1,683,400
R. Glenn Hubbard 27,310,316 1,683,404
Karen P. Robards 27,277,982 1,715,738
Robert S. Salomon, Jr. 27,280,644 1,713,076
----------------------------------------------------------------------------------------------
During the six-month period ended August 31, 2007, the Auction Market Preferred
Stock (Series A - E) Shareholders of BlackRock MuniHoldings New York Insured
Fund, Inc. voted on the following proposal, which was approved at an annual
shareholders' meeting on August 16, 2007. A description of the proposal and
number of shares voted for each Director are as follows:
----------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
----------------------------------------------------------------------------------------------
To elect the Fund's Directors: Frank J. Fabozzi and
W. Carl Kester 11,989 4
----------------------------------------------------------------------------------------------
AUGUST 31, 2007 ANNUAL REPORTS 33
Dividend Policy
The Funds' dividend policy is to distribute all or a portion of their net
investment income to their shareholders on a monthly basis. In order to provide
shareholders with a more stable level of dividend distributions, the Funds 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 Funds for any particular
month may be more or less than the amount of net investment income earned by the
Funds during such month. The Funds' 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 these reports.
Availability of Quarterly Schedules of Investments
The Funds file their complete schedules 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 Funds' Forms N-Q are available on the SEC's
Web site at http://www.sec.gov. The Funds' 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 Funds' Web site. Shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Funds' 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.
34 AUGUST 31, 2007 ANNUAL REPORTS
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.
AUGUST 31, 2007 ANNUAL REPORTS 35
These reports, including the financial information herein, are transmitted to
shareholders of BlackRock MuniHoldings Florida Insured Fund and BlackRock
MuniHoldings New York Insured Fund, Inc. for their information. This is not a
prospectus. Past performance results shown in this report should not be
considered a representation of future performance. The Funds have leveraged
their Common Shares or Stock and intend to remain leveraged by issuing Preferred
Shares or Stock to provide the Common Shareholders or Common Stock shareholders
with a potentially higher rate of return. Leverage creates risks for Common
Shareholders or Common Stock shareholders, including the likelihood of greater
volatility of net asset value and market price of shares of the Common Shares or
Stock, and the risk that fluctuations in the short-term dividend rates of the
Preferred Shares or Stock may affect the yield to Common Shareholders or 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 Funds use 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 Funds vote proxies relating to
securities held in the Funds' portfolios 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 MuniHoldings Florida Insured Fund
BlackRock MuniHoldings New York Insured Fund, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
BLACKROCK
#MHFLNY-8/07
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of
the end of the period covered by this report, applicable to the
registrant's principal executive officer, principal financial
officer and principal accounting officer, or persons performing
similar functions. During the period covered by this report, there
have been no amendments to or waivers granted under the code of
ethics. A copy of the code of ethics is available without charge at
www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors or trustees, as applicable (the "board of directors") has
determined that (i) the registrant has the following audit committee
financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent: (1) Ronald W. Forbes, (2)
Richard R. West, and (3) Edward D. Zinbarg (retired as of December
31, 2006).
Under applicable securities laws, a person determined to be an audit
committee financial expert will not be deemed an "expert" for any
purpose, including without limitation for the purposes of Section 11
of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation
or identification as an audit committee financial expert does not
impose on such person any duties, obligations, or liabilities
greater than the duties, obligations, and liabilities imposed on
such person as a member of the audit committee and board of
directors in the absence of such designation or identification.
Item 4 - Principal Accountant Fees and Services
----------------------------------------------------------------------------------------------------------------------
(b) Audit-Related
(a) Audit Fees Fees(1) (c) Tax Fees(2) (d) All Other Fees(3)
----------------------------------------------------------------------------------------------------------------------
Current Previous Current Previous Current Previous Current Previous
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
Entity Name Year End Year End Year End Year End Year End Year End Year End Year End
----------------------------------------------------------------------------------------------------------------------
BlackRock MuniHoldings
Florida Insured Fund $57,450 $32,600 $3,500 $3,500 $6,100 $6,000 $1,042 $0
----------------------------------------------------------------------------------------------------------------------
1 The nature of the services include assurance and related services reasonably
related to the performance of the audit of financial statements not included in
Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax
planning.
3 The nature of the services include a review of compliance procedures and
attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to
the registrant's affiliated service providers that relate directly
to the operations and the financial reporting of the registrant.
Certain of these non-audit services that the Committee believes are
a) consistent with the SEC's auditor independence rules and b)
routine and recurring services that will not impair the independence
of the independent accountants may be approved by the Committee
without consideration on a specific case-by-case basis ("general
pre-approval"). However, such services will only be deemed
pre-approved provided that any individual project does not exceed
$5,000 attributable to the registrant or $50,000 for all of the
registrants the Committee oversees. Any proposed services exceeding
the pre-approved cost levels will require specific pre-approval by
the Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) None of the services described in each of Items 4(b) through
(d) were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
--------------------------------------------------------------------
Current Fiscal Year Previous Fiscal
Entity Name End Year End
--------------------------------------------------------------------
BlackRock MuniHoldings
Florida Insured Fund $295,142 $3,108,000
--------------------------------------------------------------------
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant's investment
adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services
to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $284,500, 0%
Item 5 - Audit Committee of Listed Registrants - The following individuals
are members of the registrant's separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of the
Exchange Act (15 U.S.C. 78c(a)(58)(A)):
Ronald W. Forbes
Cynthia A. Montgomery
Jean Margo Reid
Roscoe S. Suddarth
Richard R. West
Edward D. Zinbarg (retired as of December 31, 2006)
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 - The registrant has delegated the
voting of proxies relating to Fund portfolio securities to its
investment adviser, BlackRock Advisors, LLC and its sub-adviser, as
applicable. The Proxy Voting Policies and Procedures of the adviser
and sub-adviser are attached hereto as Exhibit 99.PROXYPOL.
Information about how a Fund voted proxies relating to securities
held in the Fund's portfolio during the most recent 12 month period
ended June 30 is available without charge (1) at www.blackrock.com
and (2) on the Commission's web site at http://www.sec.gov.
Proxy Voting Policies and Procedures
For BlackRock Advisors, LLC
And Its Affiliated SEC Registered Investment Advisers
September 30, 2006
Table of Contents
Page
----
Introduction.................................................................
Scope of Committee Responsibilities..........................................
Special Circumstances........................................................
Voting Guidelines............................................................
Boards of Directors....................................................
Auditors...............................................................
Compensation and Benefits..............................................
Capital Structure......................................................
Corporate Charter and By-Laws..........................................
Corporate Meetings.....................................................
Investment Companies...................................................
Environmental and Social Issues........................................
Notice to Clients............................................................
Proxy Voting Policies and Procedures
These Proxy Voting Policies and Procedures ("Policy") for BlackRock
Advisors, LLC and its affiliated U.S. registered investment advisers(1)
("BlackRock") reflect our duty as a fiduciary under the Investment Advisers Act
of 1940 (the "Advisers Act") to vote proxies in the best interests of our
clients. BlackRock serves as the investment manager for investment companies,
other commingled investment vehicles and/or separate accounts of institutional
and other clients. The right to vote proxies for securities held in such
accounts belongs to BlackRock's clients. Certain clients of BlackRock have
retained the right to vote such proxies in general or in specific
circumstances.(2) Other clients, however, have delegated to BlackRock the right
to vote proxies for securities held in their accounts as part of BlackRock's
authority to manage, acquire and dispose of account assets.
When BlackRock votes proxies for a client that has delegated to BlackRock
proxy voting authority, BlackRock acts as the client's agent. Under the Advisers
Act, an investment adviser is a fiduciary that owes each of its clients a duty
of care and loyalty with respect to all services the adviser undertakes on the
client's behalf, including proxy voting. BlackRock is therefore subject to a
fiduciary duty to vote proxies in a manner BlackRock believes is consistent with
the client's best interests,(3) whether or not the client's proxy voting is
subject to the fiduciary standards of the Employee Retirement Income Security
Act of 1974 ("ERISA").(4) When voting proxies for client accounts (including
investment companies), BlackRock's primary objective is to make voting decisions
solely in the best interests of clients and ERISA clients' plan beneficiaries
and participants. In fulfilling its obligations to clients, BlackRock will seek
to act in a manner that it believes is most likely to enhance the economic value
of the underlying securities held in client accounts.(5) It is imperative that
BlackRock considers the interests of its clients, and not the interests of
BlackRock, when voting proxies and that real (or perceived) material conflicts
that may arise between BlackRock's interest and those of BlackRock's clients are
properly addressed and resolved.
----------
(1) The Policy does not apply to BlackRock Asset Management U.K. Limited and
BlackRock Investment Managers International Limited, which are U.S. registered
investment advisers based in the United Kingdom.
(2) In certain situations, a client may direct BlackRock to vote in accordance
with the client's proxy voting policies. In these situations, BlackRock will
seek to comply with such policies to the extent it would not be inconsistent
with other BlackRock legal responsibilities.
(3) Letter from Harvey L. Pitt, Chairman, SEC, to John P.M. Higgins, President,
Ram Trust Services (February 12, 2002) (Section 206 of the Investment Advisers
Act imposes a fiduciary responsibility to vote proxies fairly and in the best
interests of clients); SEC Release No. IA-2106 (February 3, 2003).
(4) DOL Interpretative Bulletin of Sections 402, 403 and 404 of ERISA at 29
C.F.R. 2509.94-2.
(5) Other considerations, such as social, labor, environmental or other
policies, may be of interest to particular clients. While BlackRock is cognizant
of the importance of such considerations, when voting proxies it will generally
take such matters into account only to the extent that they have a direct
bearing on the economic value of the underlying securities. To the extent that a
BlackRock client desires to pursue a particular social, labor, environmental or
other agenda through the proxy votes made for its securities held through
BlackRock as investment adviser, BlackRock encourages the client to consider
retaining direct proxy voting authority or to appoint independently a special
proxy voting fiduciary other than BlackRock.
1
Advisers Act Rule 206(4)-6 was adopted by the SEC in 2003 and requires,
among other things, that an investment adviser that exercises voting authority
over clients' proxy voting adopt policies and procedures reasonably designed to
ensure that the adviser votes proxies in the best interests of clients,
discloses to its clients information about those policies and procedures and
also discloses to clients how they may obtain information on how the adviser has
voted their proxies.
In light of such fiduciary duties, the requirements of Rule 206(4)-6, and
given the complexity of the issues that may be raised in connection with proxy
votes, BlackRock has adopted these policies and procedures. BlackRock's Equity
Investment Policy Oversight Committee, or a sub-committee thereof (the
"Committee"), addresses proxy voting issues on behalf of BlackRock and its
clients.(6) The Committee is comprised of senior members of BlackRock's
Portfolio Management Group and advised by BlackRock's Legal and Compliance
Department.
----------
(6) Subject to the Proxy Voting Policies of Merrill Lynch Bank & Trust Company
FSB, the Committee may also function jointly as the Proxy Voting Committee for
Merrill Lynch Bank & Trust Company FSB trust accounts managed by personnel
dually-employed by BlackRock.
2
I. Scope of Committee Responsibilities
The Committee shall have the responsibility for determining how to address
proxy votes made on behalf of all BlackRock clients, except for clients who have
retained the right to vote their own proxies, either generally or on any
specific matter. In so doing, the Committee shall seek to ensure that proxy
votes are made in the best interests of clients, and that proxy votes are
determined in a manner free from unwarranted or inappropriate influences. The
Committee shall also oversee the overall administration of proxy voting for
BlackRock accounts.(7)
The Committee shall establish BlackRock's proxy voting guidelines, with
such advice, participation and research as the Committee deems appropriate from
portfolio managers, proxy voting services or other knowledgeable interested
parties. As it is anticipated that there will not necessarily be a "right" way
to vote proxies on any given issue applicable to all facts and circumstances,
the Committee shall also be responsible for determining how the proxy voting
guidelines will be applied to specific proxy votes, in light of each issuer's
unique structure, management, strategic options and, in certain circumstances,
probable economic and other anticipated consequences of alternative actions. In
so doing, the Committee may determine to vote a particular proxy in a manner
contrary to its generally stated guidelines.
The Committee may determine that the subject matter of certain proxy
issues are not suitable for general voting guidelines and requires a
case-by-case determination, in which case the Committee may elect not to adopt a
specific voting guideline applicable to such issues. BlackRock believes that
certain proxy voting issues - such as approval of mergers and other significant
corporate transactions - require investment analysis akin to investment
decisions, and are therefore not suitable for general guidelines. The Committee
may elect to adopt a common BlackRock position on certain proxy votes that are
akin to investment decisions, or determine to permit portfolio managers to make
individual decisions on how best to maximize economic value for the accounts for
which they are responsible (similar to normal buy/sell investment decisions made
by such portfolio managers).(8)
While it is expected that BlackRock, as a fiduciary, will generally seek
to vote proxies over which BlackRock exercises voting authority in a uniform
manner for all BlackRock clients, the Committee, in conjunction with the
portfolio manager of an account, may determine that the specific circumstances
of such account require that such account's proxies be voted differently due to
such account's investment objective or other factors that differentiate it from
other accounts. In addition, on proxy votes that are akin to investment
decisions, BlackRock believes portfolio managers may from time to time
----------
(7) The Committee may delegate day-to-day administrative responsibilities to
other BlackRock personnel and/or outside service providers, as appropriate.
(8) The Committee will normally defer to portfolio managers on proxy votes that
are akin to investment decisions except for proxy votes that involve a material
conflict of interest, in which case it will determine, in its discretion, the
appropriate voting process so as to address such conflict.
3
legitimately reach differing but equally valid views, as fiduciaries for
BlackRock's clients, on how best to maximize economic value in respect of a
particular investment.
The Committee will also be responsible for ensuring the maintenance of
records of each proxy vote, as required by Advisers Act Rule 204-2.(9) All
records will be maintained in accordance with applicable law. Except as may be
required by applicable legal requirements, or as otherwise set forth herein, the
Committee's determinations and records shall be treated as proprietary,
nonpublic and confidential.
The Committee shall be assisted by other BlackRock personnel, as may be
appropriate. In particular, the Committee has delegated to the BlackRock
Operations Department responsibility for monitoring corporate actions and
ensuring that proxy votes are submitted in a timely fashion. The Operations
Department shall ensure that proxy voting issues are promptly brought to the
Committee's attention and that the Committee's proxy voting decisions are
appropriately disseminated and implemented.
To assist BlackRock in voting proxies, the Committee may retain the
services of a firm providing such services. BlackRock has currently retained
Institutional Shareholder Services ("ISS") in that role. ISS is an independent
adviser that specializes in providing a variety of fiduciary-level proxy-related
services to institutional investment managers, plan sponsors, custodians,
consultants, and other institutional investors. The services provided to
BlackRock may include, but are not limited to, in-depth research, voting
recommendations (which the Committee is not obligated to follow), vote
execution, and recordkeeping.
----------
(9) The Committee may delegate the actual maintenance of such records to an
outside service provider. Currently, the Committee has delegated the maintenance
of such records to Institutional Shareholder Services.
4
II. Special Circumstances
Routine Consents. BlackRock may be asked from time to time to consent to
an amendment to, or grant a waiver under, a loan agreement, partnership
agreement, indenture or other governing document of a specific financial
instrument held by BlackRock clients. BlackRock will generally treat such
requests for consents not as "proxies" subject to these Proxy Voting Policies
and Procedures but as investment matters to be dealt with by the responsible
BlackRock investment professionals would, provided that such consents (i) do not
relate to the election of a board of directors or appointment of auditors of a
public company, and (ii) either (A) would not otherwise materially affect the
structure, management or control of a public company, or (B) relate to a company
in which BlackRock clients hold only interests in bank loans or debt securities
and are consistent with customary standards and practices for such instruments.
Securities on Loan. Registered investment companies that are advised by
BlackRock as well as certain of our advisory clients may participate in
securities lending programs. Under most securities lending arrangements,
securities on loan may not be voted by the lender (unless the loan is recalled).
BlackRock believes that each client has the right to determine whether
participating in a securities lending program enhances returns, to contract with
the securities lending agent of its choice and to structure a securities lending
program, through its lending agent, that balances any tension between loaning
and voting securities in a matter that satisfies such client. If client has
decided to participate in a securities lending program, BlackRock will therefore
defer to the client's determination and not attempt to seek recalls solely for
the purpose of voting routine proxies as this could impact the returns received
from securities lending and make the client a less desirable lender in a
marketplace. Where a client retains a lending agent that is unaffiliated with
BlackRock, BlackRock will generally not seek to vote proxies relating to
securities on loan because BlackRock does not have a contractual right to recall
such loaned securities for the purpose of voting proxies. Where BlackRock or an
affiliate acts as the lending agent, BlackRock will also generally not seek to
recall loaned securities for proxy voting purposes, unless the portfolio manager
responsible for the account or the Committee determines that voting the proxy is
in the client's best interest and requests that the security be recalled.
Voting Proxies for Non-US Companies. While the proxy voting process is
well established in the United States, voting proxies of non-US companies
frequently involves logistical issues which can affect BlackRock's ability to
vote such proxies, as well as the desirability of voting such proxies. These
issues include (but are not limited to): (i) untimely notice of shareholder
meetings, (ii) restrictions on a foreigner's ability to exercise votes, (iii)
requirements to vote proxies in person, (iv) "shareblocking" (requirements that
investors who exercise their voting rights surrender the right to dispose of
their holdings for some specified period in proximity to the shareholder
meeting), (v) potential difficulties in translating the proxy, and (vi)
requirements to provide local agents with unrestricted powers of attorney to
facilitate voting instructions.
5
As a consequence, BlackRock votes proxies of non-US companies only on a
"best-efforts" basis. In addition, the Committee may determine that it is
generally in the best interests of BlackRock clients not to vote proxies of
companies in certain countries if the Committee determines that the costs
(including but not limited to opportunity costs associated with shareblocking
constraints) associated with exercising a vote generally are expected to
outweigh the benefit the client will derive by voting on the issuer's proposal.
If the Committee so determines in the case of a particular country, the
Committee (upon advice from BlackRock portfolio managers) may override such
determination with respect to a particular issuer's shareholder meeting if the
Committee believes the benefits of seeking to exercise a vote at such meeting
outweighs the costs, in which case BlackRock will seek to vote on a best-efforts
basis.
Securities Sold After Record Date. With respect to votes in connection
with securities held on a particular record date but sold from a client account
prior to the holding of the related meeting, BlackRock may take no action on
proposals to be voted on in such meeting.
Conflicts of Interest. From time to time, BlackRock may be required to
vote proxies in respect of an issuer that is an affiliate of BlackRock (a
"BlackRock Affiliate"), or a money management or other client of BlackRock (a
"BlackRock Client").(10) In such event, provided that the Committee is aware of
the real or potential conflict, the following procedures apply:
o The Committee intends to adhere to the voting guidelines set forth
herein for all proxy issues including matters involving BlackRock
Affiliates and BlackRock Clients. The Committee may, in its
discretion for the purposes of ensuring that an independent
determination is reached, retain an independent fiduciary to advise
the Committee on how to vote or to cast votes on behalf of
BlackRock's clients; and
o if the Committee determines not to retain an independent fiduciary,
or does not desire to follow the advice of such independent
fiduciary, the Committee shall determine how to vote the proxy after
consulting with the BlackRock Legal and Compliance Department and
concluding that the vote cast is in the client's best interest
notwithstanding the conflict.
----------
(10) Such issuers may include investment companies for which BlackRock provides
investment advisory, administrative and/or other services.
6
III. Voting Guidelines
The Committee has determined that it is appropriate and in the best
interests of BlackRock's clients to adopt the following voting guidelines, which
represent the Committee's usual voting position on certain recurring proxy
issues that are not expected to involve unusual circumstances. With respect to
any particular proxy issue, however, the Committee may elect to vote differently
than a voting guideline if the Committee determines that doing so is, in the
Committee's judgment, in the best interest of its clients. The guidelines may be
reviewed at any time upon the request of any Committee member and may be amended
or deleted upon the vote of a majority of voting Committee members present at a
Committee meeting for which there is a quorum.
7
A. Boards of Directors
These proposals concern those issues submitted to shareholders relating to
the composition of the Board of Directors of companies other than investment
companies. As a general matter, the Committee believes that a company's Board of
Directors (rather than shareholders) is most likely to have access to important,
nonpublic information regarding a company's business and prospects, and is
therefore best-positioned to set corporate policy and oversee management. The
Committee therefore believes that the foundation of good corporate governance is
the election of qualified, independent corporate directors who are likely to
diligently represent the interests of shareholders and oversee management of the
corporation in a manner that will seek to maximize shareholder value over time.
In individual cases, the Committee may look at a Director nominee's history of
representing shareholder interests as a director of other companies, or other
factors to the extent the Committee deems relevant.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
# VOTE and DESCRIPTION
--------------------------------------------------------------------------------
A.1 FOR nominees for director of United States companies in uncontested
elections, except for nominees who
o have missed at least two meetings and, as a result, attended less
than 75% of meetings of the Board of Directors and its committees
the previous year, unless the nominee missed the meeting(s) due to
illness or company business
o voted to implement or renew a "dead-hand" poison pill
o ignored a shareholder proposal that was approved by either a
majority of the shares outstanding in any year or by the majority of
votes cast for two consecutive years
o failed to act on takeover offers where the majority of the
shareholders have tendered their shares
o are corporate insiders who serve on the audit, compensation or
nominating committees or on a full Board that does not have such
committees composed exclusively of independent directors
o on a case-by-case basis, have served as directors of other companies
with allegedly poor corporate governance
o sit on more than six boards of public companies
--------------------------------------------------------------------------------
A.2 FOR nominees for directors of non-U.S. companies in uncontested elections,
except for nominees from whom the Committee determines to withhold votes
due to the nominees' poor records of representing shareholder interests,
on a case-by-case basis
--------------------------------------------------------------------------------
A.3 FOR proposals to declassify Boards of Directors, except where there exists
a legitimate purpose for classifying boards
--------------------------------------------------------------------------------
A.4 AGAINST proposals to classify Boards of Directors, except where there
exists a legitimate purpose for classifying boards
--------------------------------------------------------------------------------
8
--------------------------------------------------------------------------------
A.5 AGAINST proposals supporting cumulative voting
--------------------------------------------------------------------------------
A.6 FOR proposals eliminating cumulative voting
--------------------------------------------------------------------------------
A.7 FOR proposals supporting confidential voting
--------------------------------------------------------------------------------
A.8 FOR proposals seeking election of supervisory board members
--------------------------------------------------------------------------------
A.9 AGAINST shareholder proposals seeking additional representation of women
and/or minorities generally (i.e., not specific individuals) to a Board of
Directors
--------------------------------------------------------------------------------
A.10 AGAINST shareholder proposals for term limits for directors
--------------------------------------------------------------------------------
A.11 FOR shareholder proposals to establish a mandatory retirement age for
directors who attain the age of 72 or older
--------------------------------------------------------------------------------
A.12 AGAINST shareholder proposals requiring directors to own a minimum amount
of company stock
--------------------------------------------------------------------------------
A.13 FOR proposals requiring a majority of independent directors on a Board of
Directors
--------------------------------------------------------------------------------
A.14 FOR proposals to allow a Board of Directors to delegate powers to a
committee or committees
--------------------------------------------------------------------------------
A.15 FOR proposals to require audit, compensation and/or nominating committees
of a Board of Directors to consist exclusively of independent directors
--------------------------------------------------------------------------------
A.16 AGAINST shareholder proposals seeking to prohibit a single person from
occupying the roles of chairman and chief executive officer
--------------------------------------------------------------------------------
A.17 FOR proposals to elect account inspectors
--------------------------------------------------------------------------------
A.18 FOR proposals to fix the membership of a Board of Directors at a specified
size
--------------------------------------------------------------------------------
A.19 FOR proposals permitting shareholder ability to nominate directors
directly
--------------------------------------------------------------------------------
A.20 AGAINST proposals to eliminate shareholder ability to nominate directors
directly
--------------------------------------------------------------------------------
A.21 FOR proposals permitting shareholder ability to remove directors directly
--------------------------------------------------------------------------------
A.22 AGAINST proposals to eliminate shareholder ability to remove directors
directly
--------------------------------------------------------------------------------
9
B. Auditors
These proposals concern those issues submitted to shareholders related to
the selection of auditors. As a general matter, the Committee believes that
corporate auditors have a responsibility to represent the interests of
shareholders and provide an independent view on the propriety of financial
reporting decisions of corporate management. While the Committee will generally
defer to a corporation's choice of auditor, in individual cases, the Committee
may look at an auditors' history of representing shareholder interests as
auditor of other companies, to the extent the Committee deems relevant.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
B.1 FOR approval of independent auditors, except for
o auditors that have a financial interest in, or material association
with, the company they are auditing, and are therefore believed by
the Committee not to be independent
o auditors who have rendered an opinion to any company which in the
Committee's opinion is either not consistent with best accounting
practices or not indicative of the company's financial situation
o on a case-by-case basis, auditors who in the Committee's opinion
provide a significant amount of non-audit services to the company
--------------------------------------------------------------------------------
B.2 FOR proposals seeking authorization to fix the remuneration of auditors
--------------------------------------------------------------------------------
B.3 FOR approving internal statutory auditors
--------------------------------------------------------------------------------
B.4 FOR proposals for audit firm rotation, except for proposals that would
require rotation after a period of less than 5 years
--------------------------------------------------------------------------------
10
C. Compensation and Benefits
These proposals concern those issues submitted to shareholders related to
management compensation and employee benefits. As a general matter, the
Committee favors disclosure of a company's compensation and benefit policies and
opposes excessive compensation, but believes that compensation matters are
normally best determined by a corporation's board of directors, rather than
shareholders. Proposals to "micro-manage" a company's compensation practices or
to set arbitrary restrictions on compensation or benefits will therefore
generally not be supported.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
C.1 IN ACCORDANCE WITH THE RECOMMENDATION OF ISS on compensation plans if the
ISS recommendation is based solely on whether or not the company's plan
satisfies the allowable cap as calculated by ISS. If the recommendation of
ISS is based on factors other than whether the plan satisfies the
allowable cap the Committee will analyze the particular proposed plan.
This policy applies to amendments of plans as well as to initial
approvals.
--------------------------------------------------------------------------------
C.2 FOR proposals to eliminate retirement benefits for outside directors
--------------------------------------------------------------------------------
C.3 AGAINST proposals to establish retirement benefits for outside directors
--------------------------------------------------------------------------------
C.4 FOR proposals approving the remuneration of directors or of supervisory
board members
--------------------------------------------------------------------------------
C.5 AGAINST proposals to reprice stock options
--------------------------------------------------------------------------------
C.6 FOR proposals to approve employee stock purchase plans that apply to all
employees. This policy applies to proposals to amend ESPPs if the plan as
amended applies to all employees.
--------------------------------------------------------------------------------
C.7 FOR proposals to pay retirement bonuses to directors of Japanese companies
unless the directors have served less than three years
--------------------------------------------------------------------------------
C.8 AGAINST proposals seeking to pay outside directors only in stock
--------------------------------------------------------------------------------
C.9 FOR proposals seeking further disclosure of executive pay or requiring
companies to report on their supplemental executive retirement benefits
--------------------------------------------------------------------------------
C.10 AGAINST proposals to ban all future stock or stock option grants to
executives
--------------------------------------------------------------------------------
C.11 AGAINST option plans or grants that apply to directors or employees of
"related companies" without adequate disclosure of the corporate
relationship and justification of the option policy
--------------------------------------------------------------------------------
C.12 FOR proposals to exclude pension plan income in the calculation of
earnings used in determining executive bonuses/compensation
--------------------------------------------------------------------------------
11
D. Capital Structure
These proposals relate to various requests, principally from management,
for approval of amendments that would alter the capital structure of a company,
such as an increase in authorized shares. As a general matter, the Committee
will support requests that it believes enhance the rights of common shareholders
and oppose requests that appear to be unreasonably dilutive.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
D.1 AGAINST proposals seeking authorization to issue shares without preemptive
rights except for issuances up to 10% of a non-US company's total
outstanding capital
--------------------------------------------------------------------------------
D.2 FOR management proposals seeking preemptive rights or seeking
authorization to issue shares with preemptive rights
--------------------------------------------------------------------------------
D.3 FOR management proposals approving share repurchase programs
--------------------------------------------------------------------------------
D.4 FOR management proposals to split a company's stock
--------------------------------------------------------------------------------
D.5 FOR management proposals to denominate or authorize denomination of
securities or other obligations or assets in Euros
--------------------------------------------------------------------------------
D.6 FOR proposals requiring a company to expense stock options (unless the
company has already publicly committed to do so by a certain date).
--------------------------------------------------------------------------------
12
E. Corporate Charter and By-Laws
These proposals relate to various requests for approval of amendments to a
corporation's charter or by-laws, principally for the purpose of adopting or
redeeming "poison pills". As a general matter, the Committee opposes poison pill
provisions.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
E.1 AGAINST proposals seeking to adopt a poison pill
--------------------------------------------------------------------------------
E.2 FOR proposals seeking to redeem a poison pill
--------------------------------------------------------------------------------
E.3 FOR proposals seeking to have poison pills submitted to shareholders for
ratification
--------------------------------------------------------------------------------
E.4 FOR management proposals to change the company's name
--------------------------------------------------------------------------------
13
F. Corporate Meetings
These are routine proposals relating to various requests regarding the
formalities of corporate meetings.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
F.1 AGAINST proposals that seek authority to act on "any other business that
may arise"
--------------------------------------------------------------------------------
F.2 FOR proposals designating two shareholders to keep minutes of the meeting
--------------------------------------------------------------------------------
F.3 FOR proposals concerning accepting or approving financial statements and
statutory reports
--------------------------------------------------------------------------------
F.4 FOR proposals approving the discharge of management and the supervisory
board
--------------------------------------------------------------------------------
F.5 FOR proposals approving the allocation of income and the dividend
--------------------------------------------------------------------------------
F.6 FOR proposals seeking authorization to file required documents/other
formalities
--------------------------------------------------------------------------------
F.7 FOR proposals to authorize the corporate board to ratify and execute
approved resolutions
--------------------------------------------------------------------------------
F.8 FOR proposals appointing inspectors of elections
--------------------------------------------------------------------------------
F.9 FOR proposals electing a chair of the meeting
--------------------------------------------------------------------------------
F.10 FOR proposals to permit "virtual" shareholder meetings over the Internet
--------------------------------------------------------------------------------
F.11 AGAINST proposals to require rotating sites for shareholder meetings
--------------------------------------------------------------------------------
14
G. Investment Companies
These proposals relate to proxy issues that are associated solely with
holdings of shares of investment companies, including, but not limited to,
investment companies for which BlackRock provides investment advisory,
administrative and/or other services. As with other types of companies, the
Committee believes that a fund's Board of Directors (rather than its
shareholders) is best-positioned to set fund policy and oversee management.
However, the Committee opposes granting Boards of Directors authority over
certain matters, such as changes to a fund's investment objective, that the
Investment Company Act of 1940 envisions will be approved directly by
shareholders.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
G.1 FOR nominees for director of mutual funds in uncontested elections, except
for nominees who
o have missed at least two meetings and, as a result, attended less
than 75% of meetings of the Board of Directors and its committees
the previous year, unless the nominee missed the meeting due to
illness or fund business
o ignore a shareholder proposal that was approved by either a majority
of the shares outstanding in any year or by the majority of votes
cast for two consecutive years
o are interested directors who serve on the audit or nominating
committees or on a full Board that does not have such committees
composed exclusively of independent directors
o on a case-by-case basis, have served as directors of companies with
allegedly poor corporate governance
--------------------------------------------------------------------------------
G.2 FOR the establishment of new series or classes of shares
--------------------------------------------------------------------------------
G.3 AGAINST proposals to change a fund's investment objective to
nonfundamental
--------------------------------------------------------------------------------
G.4 FOR proposals to establish a master-feeder structure or authorizing the
Board to approve a master-feeder structure without a further shareholder
vote
--------------------------------------------------------------------------------
G.5 AGAINST a shareholder proposal for the establishment of a director
ownership requirement
--------------------------------------------------------------------------------
G.6 FOR classified boards of closed-end investment companies
--------------------------------------------------------------------------------
15
H. Environmental and Social Issues
These are shareholder proposals to limit corporate conduct in some manner
that relates to the shareholder's environmental or social concerns. The
Committee generally believes that annual shareholder meetings are inappropriate
forums for the discussion of larger social issues, and opposes shareholder
resolutions "micromanaging" corporate conduct or requesting release of
information that would not help a shareholder evaluate an investment in the
corporation as an economic matter. While the Committee is generally supportive
of proposals to require corporate disclosure of matters that seem relevant and
material to the economic interests of shareholders, the Committee is generally
not supportive of proposals to require disclosure of corporate matters for other
purposes.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
H.1 AGAINST proposals seeking to have companies adopt international codes of
conduct
--------------------------------------------------------------------------------
H.2 AGAINST proposals seeking to have companies provide non-required reports
on:
o environmental liabilities;
o bank lending policies;
o corporate political contributions or activities;
o alcohol advertising and efforts to discourage drinking by minors;
o costs and risk of doing business in any individual country;
o involvement in nuclear defense systems
--------------------------------------------------------------------------------
H.3 AGAINST proposals requesting reports on Maquiladora operations or on CERES
principles
--------------------------------------------------------------------------------
H.4 AGAINST proposals seeking implementation of the CERES principles
--------------------------------------------------------------------------------
16
Notice to Clients
BlackRock will make records of any proxy vote it has made on behalf of a
client available to such client upon request.(11) BlackRock will use its best
efforts to treat proxy votes of clients as confidential, except as it may decide
to best serve its clients' interests or as may be necessary to effect such votes
or as may be required by law.
BlackRock encourage clients with an interest in particular proxy voting
issues to make their views known to BlackRock, provided that, in the absence of
specific written direction from a client on how to vote that client's proxies,
BlackRock reserves the right to vote any proxy in a manner it deems in the best
interests of its clients, as it determines in its sole discretion.
These policies are as of the date indicated on the cover hereof. The
Committee may subsequently amend these policies at any time, without notice.
----------
(11) Such request may be made to the client's portfolio or relationship manager
or addressed in writing to Secretary, BlackRock Equity Investment Policy
Oversight Committee, Legal and Compliance Department, BlackRock Inc., 40 East
52nd Street, New York, New York 10022.
17
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
as of August 31, 2007.
(a)(1) BlackRock MuniHoldings Florida Insured Fund is managed by a
team of investment professionals comprised of Robert D. Sneeden,
Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing
Director at BlackRock, and Walter O'Connor, Managing Director at
BlackRock. Each is a member of BlackRock's municipal tax-exempt
management group. Mr. Jaeckel and Mr. O'Connor are responsible for
setting the Fund's overall investment strategy and overseeing the
management of the Fund. Mr. Sneeden is the Fund's lead portfolio
manager and is responsible for the day-to-day management of the
Fund's portfolio and the selection of its investments. Messrs.
Jaeckel and O'Connor have been members of the Fund's management team
since 2006 and Mr. Sneeden has been the Fund's portfolio manager
since 1998.
Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock, he
was a Managing Director (Municipal Tax-Exempt Fund Management) of
Merrill Lynch Investment Managers, L.P. ("MLIM") from 2005 to 2006
and a Director of MLIM from 1997 to 2005. He has been a portfolio
manager with BlackRock or MLIM since 1991.
Mr. O'Connor joined BlackRock in 2006. Prior to joining BlackRock,
he was a Managing Director (Municipal Tax-Exempt Fund Management) of
MLIM from 2003 to 2006 and was a Director of MLIM from 1997 to 2002.
He has been a portfolio manager with BlackRock or MLIM since 1991.
Mr. Sneeden joined BlackRock in 2006. Prior to joining BlackRock, he
was a Director (Municipal Tax-Exempt Fund Management) of MLIM since
2006 and was a Vice President of MLIM from 1998 to 2006. Mr. Sneeden
has been a portfolio manager with BlackRock or MLIM since 1994.
(a)(2) As of August 31, 2007:
-----------------------------------------------------------------------------------------------------------------------
(iii) Number of Other Accounts and
(ii) Number of Other Accounts Managed Assets for Which Advisory Fee is
and Assets by Account Type Performance-Based
-----------------------------------------------------------------------------------------------------------------------
Other Other
(i) Name of Registered Other Pooled Registered Other Pooled
Portfolio Investment Investment Other Investment Investment Other
Manager Companies Vehicles Accounts Companies Vehicles Accounts
-----------------------------------------------------------------------------------------------------------------------
Robert D.
Sneeden 12 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------
$ 2,193,520,332 $0 $0 $0 $0 $0
-----------------------------------------------------------------------------------------------------------------------
Walter
O'Connor 80 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------
$27,749,791,878 $0 $0 $0 $0 $0
-----------------------------------------------------------------------------------------------------------------------
Theodore R.
Jaeckel, Jr. 80 1 0 0 1 0
-----------------------------------------------------------------------------------------------------------------------
$27,749,791,878 $24,757,202 $0 $0 $24,757,202 $0
-----------------------------------------------------------------------------------------------------------------------
(iv) Potential Material Conflicts of Interest
BlackRock has built a professional working environment, firm-wide
compliance culture and compliance procedures and systems designed to
protect against potential incentives that may favor one account over
another. BlackRock has adopted policies and procedures that address
the allocation of investment opportunities, execution of portfolio
transactions, personal trading by employees and other potential
conflicts of interest that are designed to ensure that all client
accounts are treated equitably over time. Nevertheless, BlackRock
furnishes investment management and advisory services to numerous
clients in addition to the Fund, and BlackRock may, consistent with
applicable law, make investment recommendations to other clients or
accounts (including accounts which are hedge funds or have
performance or higher fees paid to BlackRock, or in which portfolio
managers have a personal interest in the receipt of such fees),
which may be the same as or different from those made to the Fund.
In addition, BlackRock, its affiliates and any officer, director,
stockholder or employee may or may not have an interest in the
securities whose purchase and sale BlackRock recommends to the Fund.
BlackRock, or any of its affiliates, or any officer, director,
stockholder, employee or any member of their families may take
different actions than those recommended to the Fund by BlackRock
with respect to the same securities. Moreover, BlackRock may refrain
from rendering any advice or services concerning securities of
companies of which any of BlackRock's (or its affiliates') officers,
directors or employees are directors or officers, or companies as to
which BlackRock or any of its affiliates or the officers, directors
and employees of any of them has any substantial economic interest
or possesses material non-public information. Each portfolio manager
also may manage accounts whose investment strategies may at times be
opposed to the strategy utilized for the Fund. In this connection,
it should be noted that certain portfolio managers currently manage
certain accounts that are subject to performance fees. In addition,
certain portfolio managers assist in managing certain hedge funds
and may be entitled to receive a portion of any incentive fees
earned on such funds and a portion of such incentive fees may be
voluntarily or involuntarily deferred. Additional portfolio managers
may in the future manage other such accounts or funds and may be
entitled to receive incentive fees.
As a fiduciary, BlackRock owes a duty of loyalty to its clients and
must treat each client fairly. When BlackRock purchases or sells
securities for more than one account, the trades must be allocated
in a manner consistent with its fiduciary duties. BlackRock attempts
to allocate investments in a fair and equitable manner among client
accounts, with no account receiving preferential treatment. To this
end, BlackRock has adopted a policy that is intended to ensure that
investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve
reasonable efficiency in client transactions and provide BlackRock
with sufficient flexibility to allocate investments in a manner that
is consistent with the particular investment discipline and client
base.
(a)(3) As of August 31, 2007:
Portfolio Manager Compensation
Compensation Program
The elements of total compensation for portfolio managers on
BlackRock's municipal team include a fixed base salary, annual
performance-based cash and stock compensation (cash and stock bonus)
and other benefits. BlackRock has balanced these components of pay
to provide these portfolio managers with a powerful incentive to
achieve consistently superior investment performance. By design,
compensation levels for these portfolio managers fluctuate--both up
and down--with the relative investment performance of the portfolios
that they manage.
Base compensation
Like that of many asset management firms, base salaries represent a
relatively small portion of a portfolio manager's total
compensation. This approach serves to enhance the motivational value
of the performance-based (and therefore variable) compensation
elements of the compensation program.
Performance-Based Compensation
BlackRock believes that the best interests of investors are served
by recruiting and retaining exceptional asset management talent and
managing their compensation within a consistent and disciplined
framework that emphasizes pay for performance in the context of an
intensely competitive market for talent. To that end, BlackRock and
its affiliates portfolio manager incentive compensation is based on
a formulaic compensation program. BlackRock's formulaic portfolio
manager compensation program includes: investment performance
relative to a subset of closed-end, Florida municipal debt funds
over 1-, 3- and 5-year performance periods and a measure of
operational efficiency. Portfolio managers are compensated based on
the pre-tax performance of the products they manage. If a portfolio
manager's tenure is less than 5 years, performance periods will
reflect time in position. Portfolio managers are compensated based
on products they manage. A discretionary element of portfolio
manager compensation may include consideration of: financial
results, expense control, profit margins, strategic planning and
implementation, quality of client service, market share, corporate
reputation, capital allocation, compliance and risk control,
leadership, workforce diversity, supervision, technology and
innovation. All factors are considered collectively by BlackRock
management.
Long-Term Retention and Incentive Plan (LTIP)
The LTIP is a long-term incentive plan that seeks to reward certain
key employees. The plan provides for the grant of awards that are
expressed as an amount of cash that, if properly vested and subject
to the attainment of certain performance goals, will be settled in
cash and/or in BlackRock, Inc. common stock.
Cash Bonus
Performance-based compensation is distributed to portfolio managers
in a combination of cash and stock. Typically, the cash bonus, when
combined with base salary, represents more than 60% of total
compensation for portfolio managers.
Stock Bonus
A portion of the dollar value of the total annual performance-based
bonus is paid in restricted shares of BlackRock stock. Paying a
portion of annual bonuses in stock puts compensation earned by a
portfolio manager for a given year "at risk" based on the company's
ability to sustain and improve its performance over future periods.
The ultimate value of stock bonuses is dependent on future BlackRock
stock price performance. As such, the stock bonus aligns each
portfolio manager's financial interests with those of the BlackRock
shareholders and encourages a balance between short-term goals and
long-term strategic objectives. Management strongly believes that
providing a significant portion of competitive performance-based
compensation in stock is in the best interests of investors and
shareholders. This approach ensures that portfolio managers
participate as shareholders in both the "downside risk" and "upside
opportunity" of the company's performance. Portfolio managers
therefore have a direct incentive to protect BlackRock's reputation
for integrity.
Other Compensation Programs
Portfolio managers who meet relative investment performance and
financial management objectives during a performance year are
eligible to participate in a deferred cash program. Awards under
this program are in the form of deferred cash that may be
benchmarked to a menu of BlackRock mutual funds (including their own
fund) during a five-year vesting period. The deferred cash program
aligns the interests of participating portfolio managers with the
investment results of BlackRock products and promotes continuity of
successful portfolio management teams.
Other Benefits
Portfolio managers are also eligible to participate in broad-based
plans offered generally to employees of BlackRock and its
affiliates, including broad-based retirement, 401(k), health, and
other employee benefit plans.
(a)(4) Beneficial Ownership of Securities.
As of August 31, 2007, none of Messrs. Sneeden, Jaeckel or O'Connor
beneficially owned any stock issued by the Fund.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable due to no such
purchases during the period covered by this report.
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 1940 Act)
that occurred during the second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
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 MuniHoldings Florida Insured Fund
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock MuniHoldings Florida Insured Fund
Date: October 22, 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 (principal executive officer) of
BlackRock MuniHoldings Florida Insured Fund
Date: October 22, 2007
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock MuniHoldings Florida Insured Fund
Date: October 22, 2007