UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07478
Name of Fund: BlackRock MuniVest Fund II, Inc. (MVT)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock MuniVest Fund II, Inc., 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 10/31/2008
Date of reporting period: 11/01/2007 - 04/30/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock BLACKROCK
MuniVest Fund II, Inc. (MVT)
SEMI-ANNUAL REPORT
APRIL 30, 2008 | (UNAUDITED)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
================================================================================
Page
--------------------------------------------------------------------------------
A Letter to Shareholders .................................................. 3
Semi-Annual Report:
Fund Summary .............................................................. 4
The Benefits and Risks of Leveraging ...................................... 5
Swap Agreements ........................................................... 5
Financial Statements:
Schedule of Investments ............................................... 6
Statement of Assets and Liabilities ................................... 12
Statement of Operations ............................................... 12
Statements of Changes in Net Assets ................................... 13
Financial Highlights ...................................................... 14
Notes to Financial Statements ............................................. 15
Officers and Directors .................................................... 19
Additional Information .................................................... 20
2 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
A Letter to Shareholders
Dear Shareholder
Over the past several months, financial markets have been buffeted by the
housing recession, the credit market unraveling and related liquidity freeze and
steadily rising commodity prices. Counterbalancing these difficulties were
booming export activity, a robust non-financial corporate sector and, notably,
aggressive and timely monetary and fiscal policy actions.
Amid the market tumult, the Federal Reserve Board (the "Fed") intervened with a
series of moves to bolster liquidity and ensure financial market stability.
Since September 2007, the central bank slashed the target federal funds rate 325
basis points (3.25%), bringing the rate to 2.0% as of period-end. Of greater
magnitude, however, were the Fed's other policy decisions, which included
opening the discount window directly to broker dealers and investment banks and
backstopping the unprecedented rescue of Bear Stearns.
The Fed's response to the financial crisis helped to improve credit conditions
and investor mood. After hitting a low point on March 17 (coinciding with the
collapse of Bear Stearns), equity markets found a welcome respite in April, when
the S&P 500 Index of U.S. stocks posted positive monthly performance for the
first time since October 2007. International markets, which outpaced those of
the U.S. for much of 2007, saw a reversal in that trend, as effects of the
credit crisis and downward pressures on growth were far-reaching.
In contrast to equity markets, Treasury securities rallied (yields fell as
prices correspondingly rose), as a broad "flight-to-quality" theme persisted.
The yield on 10-year Treasury issues, which touched 5.30% in June 2007 (its
highest level in five years), fell to 4.04% by year-end and to 3.77% by April
30. Treasury issues relinquished some of their gains in April, however, as
investor appetite for risk returned and other high-quality fixed income sectors
outperformed.
Problems within the monoline insurance industry and the failure of auctions for
auction rate securities plagued the municipal bond market, driving yields higher
and prices lower across the curve. However, in conjunction with the more recent
shift in sentiment, the sector delivered strong performance in the final month
of the reporting period.
Overall, the major benchmark indexes generated results that generally reflected
heightened investor risk aversion:
Total Returns as of April 30, 2008 6-month 12-month
===============================================================================================================
U.S. equities (S&P 500 Index) - 9.64% - 4.68%
---------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) -12.92 -10.96
---------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) - 9.21 - 1.78
---------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Index) + 4.08 + 6.87
---------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.47 + 2.79
---------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) - 0.73 - 0.80
---------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
As you navigate today's volatile markets, we encourage you to review your
investment goals with your financial professional and to make portfolio changes,
as needed. For more up-to-date commentary on the economy and financial markets,
we invite you to visit www.blackrock.com/funds. As always, we thank you for
entrusting BlackRock with your investment assets, and we look forward to
continuing to serve you in the months and years ahead.
Sincerely,
/s/ Rob Kapito
Rob Kapito
President, BlackRock Advisors, LLC
3
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary as of April 30, 2008
Investment Objective
BlackRock MuniVest Fund II, Inc. (MVT) (the "Fund") seeks to provide
shareholders with as high a level of current income exempt from federal income
taxes as is consistent with its investment policies and prudent investment
management by investing primarily in a portfolio of long-term, investment grade
municipal obligations, the interest on which, in the opinion of bond counsel to
the issuers, is exempt from federal income taxes.
Performance
For the six months ended April 30, 2008, the Fund returned +4.17% based on
market price, with dividends reinvested. The Fund's return based on net asset
value ("NAV") was -2.13%, with dividends reinvested. For the same period, the
closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an
average return of -2.54% on a NAV basis. During the period, the Fund maintained
an overweight position in lower-rated issues, which underperformed amid
continued widening in credit spreads. However, the incremental income generated
by these holdings continued to enhance the Fund's above-average dividend yield,
which had an overall positive impact on performance for the period.
Fund Information
Symbol on New York Stock Exchange ............................... MVT
Initial Offering Date ........................................... March 29, 1993
Yield on Closing Market Price as of April 30, 2008 ($14.05)* .... 6.06%
Tax Equivalent Yield** .......................................... 9.32%
Current Monthly Distribution per share of Common Stock*** ....... $0.071
Current Annualized Distribution per share of Common Stock*** .... $0.852
Leverage as of April 30, 2008**** ............................... 43%
--------------------------------------------------------------------------------
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Stock
("Preferred Stock") and Tender Option Bond Trusts ("TOBs")) 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:
--------------------------------------------------------------------------------
4/30/08 10/31/07 Change High Low
--------------------------------------------------------------------------------
Market Price ............ $ 14.05 $ 13.91 1.01% $ 15.30 $ 13.05
Net Asset Value ......... $ 13.75 $ 14.49 (5.11%) $ 14.62 $ 13.23
--------------------------------------------------------------------------------
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 4/30/08 10/31/07
--------------------------------------------------------------------------------
Hospital ......................................... 22% 29%
Industrial & Pollution Control ................... 17 18
Sales Tax ........................................ 14 9
Education ........................................ 10 7
Power ............................................ 8 10
City, County & State ............................. 8 8
Transportation ................................... 7 4
Housing .......................................... 5 5
Tobacco .......................................... 5 6
Lease Revenue .................................... 2 2
Water & Sewer .................................... 2 2
--------------------------------------------------------------------------------
Credit Quality Allocations*
Credit Rating 4/30/08 10/31/07
--------------------------------------------------------------------------------
AAA/Aaa .......................................... 26% 25%
AA/Aa ............................................ 15 19
A/A .............................................. 21 22
BBB/Baa .......................................... 16 17
BB/Ba ............................................ 2 2
B/B .............................................. 2 1
Not Rated ........................................ 18 14
--------------------------------------------------------------------------------
* Using the higher of Standard & Poor's or Moody's Investors Service
ratings.
4 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
The Benefits and Risks of Leveraging
BlackRock MuniVest Fund II, Inc. (the "Fund") utilizes leverage to seek to
enhance the yield and NAV of its Common Stock. However, these objectives cannot
be achieved in all interest rate environments.
To leverage, the Fund issues Preferred Stock, which pays dividends at prevailing
short-term interest rates, and invests the proceeds in long-term municipal
bonds. The interest earned on these investments is paid to Common Stock
shareholders in the form of dividends, and the value of these portfolio holdings
is reflected in the per share net asset value of the Fund's Common Stock.
However, in order to benefit Common Stock shareholders, the yield curve must be
positively sloped; that is, short-term interest rates must be lower than
long-term interest rates. At the same time, a period of generally declining
interest rates will benefit Common Stock shareholders. If either of these
conditions change, then the risks of leveraging will begin to outweigh the
benefits.
To illustrate these concepts, assume a fund's Common Stock capitalization of
$100 million and the issuance of Preferred Stock for an additional $50 million,
creating a total value of $150 million available for investment in long-term
municipal bonds. If prevailing short-term interest rates are approximately 3%
and long-term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million of Preferred
Stock based on the lower short-term interest rates. At the same time, the fund's
total portfolio of $150 million earns income based on long-term interest rates.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term investments,
and therefore the Common Stock shareholders are the beneficiaries of the
incremental yield. However, if short-term interest rates rise, narrowing the
differential between short-term and long-term interest rates, the incremental
yield pickup on the Common Stock will be reduced or eliminated completely. At
the same time, the market value of the fund's Common Stock (that is, its price
as listed on the New York Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the Common Stock's NAV will
reflect the full decline in the price of the portfolio's investments, since the
value of the fund's Preferred Stock does not fluctuate. In addition to the
decline in NAV, the market value of the fund's Common Stock may also decline.
In addition, the Fund may from time to time leverage its assets through the use
of tender option bond ("TOB") programs. In a typical TOB program, the Fund
transfers one or more municipal bonds to a TOB trust, which issues short-term
variable rate securities to third-party investors and a residual interest to the
Fund. The cash received by the TOB trust from the issuance of the short-term
securities (less transaction expenses) is paid to the Fund, which invests the
cash in additional portfolio securities. The distribution rate on the short-term
securities is reset periodically (typically every seven days) through a
remarketing of the short-term securities. Any income earned on the bonds in the
TOB trust, net of expenses incurred by the TOB trust, that is not paid to the
holders of the short-term securities is paid to the Fund. In connection with
managing the Fund's assets, the Fund's investment advisor may at any time
retrieve the bonds out of the TOB trust typically within seven days. TOB
investments generally will provide the Fund with economic benefits in periods of
declining short-term interest rates, but expose the Fund to risks during periods
of rising short-term interest rates similar to those associated with Preferred
Stock issued by the Fund, as described above. Additionally, fluctuations in the
market value of municipal securities deposited into the TOB trust may adversely
affect the Fund's NAV per share. (See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to TOB trusts.)
Under the Investment Company Act of 1940, the Fund is permitted to issue
Preferred Stock in an amount of up to 50% of its total managed assets at the
time of issuance. The Fund also anticipates that its total economic leverage
will not exceed 50% of managed assets. Economic leverage includes Preferred
Stock and TOBs. As of April 30, 2008, the Fund had economic leverage of 43% of
managed assets.
Swap Agreements
The Fund may invest in swap agreements, which are over-the-counter contracts in
which one party agrees to make periodic payments based on the change in market
value of a specified bond, basket of bonds, or index in return for periodic
payments based on a fixed or variable interest rate or the change in market
value of a different bond, basket of bonds or index. Swap agreements may be used
to obtain exposure to a bond or market without owning or taking physical custody
of securities. Swap agreements involve the risk that the party with whom the
Fund has entered into the swap will default on its obligation to pay the Fund
and the risk that the Fund will not be able to meet its obligations to pay the
other party to the agreement.
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008 5
Schedule of Investments April 30, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
================================================================================
Alabama -- 3.2%
Prattville, Alabama, IDB, Environmental Improvement
Revenue Bonds (International Paper Company
Projects), AMT, Series A, 4.75%, 12/01/30 $3,500 $ 2,667,769
Selma, Alabama, IDB, Environmental Improvement
Revenue Bonds (International Paper Company
Project), AMT, Series A, 4.75%, 12/01/30 5,000 3,811,099
Tuscaloosa, Alabama, Special Care Facilities
Financing Authority, Residential Care Facility
Revenue Bonds (Capstone Village, Inc. Project),
Series A, 5.875%, 8/01/36 2,900 2,562,497
--------------------
9,041,365
================================================================================
Arizona -- 2.3%
Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1),
Series A, 6.75%, 7/01/29 1,000 904,669
Maricopa County, Arizona, Tempe Elementary Unified
School District Number 3, GO, Refunding,
7.50%, 7/01/10 (a) 2,315 2,536,961
Pima County, Arizona, IDA, Education Revenue Bonds
(Arizona Charter Schools Project), Series C,
6.75%, 7/01/31 1,985 2,006,676
Pima County, Arizona, IDA, Education Revenue
Refunding Bonds (Arizona Charter Schools
Project II), Series A,:
6.75%, 7/01/11 (b) 435 485,904
6.75%, 7/01/21 510 522,607
--------------------
6,456,817
================================================================================
California -- 4.5%
California State, GO:
5.50%, 4/01/14 (b) 205 231,062
5.50%, 4/01/30 5 5,165
California Statewide Communities Development
Authority Revenue Bonds (Saint Joseph Home
Care), Series E, 5.25%, 7/01/47 (c) 3,790 3,859,395
Chula Vista, California, IDR (San Diego Gas and
Electric Company), AMT, Series B, 5%, 12/01/27 2,500 2,400,350
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series A-3, 7.875%, 6/01/13 (b) 5,010 6,015,156
--------------------
12,511,128
================================================================================
Colorado -- 3.9%
Colorado HFA, Revenue Refunding Bonds
(S/F Program), AMT, Senior Series A-2,
7.50%, 4/01/31 145 150,606
Elk Valley, Colorado, Public Improvement Revenue
Bonds (Public Improvement Fee), Series A:
7.35%, 9/01/31 3,025 3,038,552
Series B, 7.45%, 9/01/31 580 584,518
North Range Metropolitan District Number 1,
Colorado, GO, 7.25%, 12/15/11 (b) 1,310 1,483,208
Plaza Metropolitan District Number 1, Colorado,
Tax Allocation Revenue Bonds
(Public Improvement Fees):
8%, 12/01/25 3,300 3,477,276
8.125%, 12/01/25 820 823,575
Southlands Metropolitan District Number 1,
Colorado, GO, 7%, 12/01/14 (b) 1,000 1,208,230
--------------------
10,765,965
================================================================================
Connecticut -- 3.4%
Connecticut State Development Authority, Airport
Facility Revenue Bonds (Learjet Inc. Project), AMT,
7.95%, 4/01/26 1,165 1,258,247
Connecticut State Health and Educational Facilities
Authority Revenue Bonds (Yale University),
Series Z-3, 5.05%, 7/01/42 6,000 6,186,180
Mohegan Tribe Indians Gaming Authority, Connecticut,
Public Improvement Revenue Refunding Bonds
(Priority Distribution), 6.25%, 1/01/31 2,000 1,926,220
--------------------
9,370,647
================================================================================
Delaware -- 0.4%
New Castle County, Delaware, PCR (General Motors
Corporation Project), VRDN, 7%, 10/01/08 (d) 1,000 1,000,000
================================================================================
District of Columbia -- 0.3%
District of Columbia, Water and Sewer Authority,
Public Utility Revenue Refunding Bonds,
Subordinate Lien, Series A, 5%, 10/01/34 (e) 685 696,666
================================================================================
Florida -- 11.1%
Brevard County, Florida, Health Facilities Authority,
Healthcare Facilities Revenue Bonds (Health
First Inc. Project), 5%, 4/01/34 6,000 5,611,500
Fiddlers Creek, Florida, Community Development
District Number 2, Special Assessment
Revenue Bonds,:
Series A, 6.375%, 5/01/35 2,350 2,197,109
Series B, 5.75%, 5/01/13 400 387,692
Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25%, 11/15/36 9,400 9,168,948
Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (H. Lee Moffitt Cancer Center Project),
Series A, 5.25%, 7/01/37 3,500 3,353,735
Midtown Miami, Florida, Community Development
District, Special Assessment Revenue Bonds,
Series A, 6.25%, 5/01/37 4,000 3,704,000
Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
5.625%, 11/15/12 (b) 1,280 1,427,635
Portfolio Abbreviations
To simplify the listings of BlackRock MuniVest Fund II, Inc.'s portfolio
holdings in the Schedule of Investments, we have abbreviated the names of many
of the securities according to the list on the right.
AMT Alternative Minimum Tax (subject to)
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
S/F Single-Family
TIF Tax Increment Financing
VRDN Variable Rate Demand Notes
6 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
================================================================================
Florida (concluded)
Orlando, Florida, Urban Community Development
District, Capital Improvement Special
Assessment Bonds:
6.25%, 5/01/34 $1,135 $ 1,032,453
Series A, 6.95%, 5/01/11 (b) 1,000 1,106,040
Palm Coast Park Community Development District,
Florida, Special Assessment Revenue Bonds,
5.70%, 5/01/37 1,240 997,183
Park Place Community Development District, Florida,
Special Assessment Revenue Bonds,
6.75%, 5/01/32 900 932,751
Preserve at Wilderness Lake, Florida, Community
Development District, Capital Improvement Bonds,
Series A, 7.10%, 5/01/33 915 944,024
--------------------
30,863,070
================================================================================
Georgia -- 7.2%
Atlanta, Georgia, Tax Allocation Bonds (Atlantic
Station Project), 7.90%, 12/01/11 (b) 2,000 2,364,200
Brunswick and Glynn County, Georgia, Development
Authority, First Mortgage Revenue Bonds (Coastal
Community Retirement Corporation Project),
Series A, 7.125%, 1/01/25 (f)(q) 1,225 820,750
Fulton County, Georgia, Residential Care Facilities,
Revenue Refunding Bonds (Canterbury Court
Project), Series A, 6.125%, 2/15/26 2,000 1,894,160
Gainesville, Georgia, Redevelopment Authority,
Educational Facilities Revenue Refunding Bonds
(Riverside Military Academy), 5.125%, 3/01/37 600 479,346
Georgia Municipal Electric Authority, Power Revenue
Refunding Bonds:
6.60%, 1/01/18 5,615 6,475,274
Series W, 6.60%, 1/01/18 (g) 380 433,002
Series X, 6.50%, 1/01/20 1,250 1,454,025
Houston County, Georgia, Hospital Authority
Revenue Bonds (Houston Heart Institute Project),
5.25%, 10/01/35 2,500 2,439,575
Main Street Natural Gas, Inc., Georgia, Gas Project
Revenue Bonds, Series A, 6.25%, 7/15/33 2,200 2,174,986
Milledgeville-Baldwin County, Georgia, Development
Authority Revenue Bonds (Georgia College and
State University Foundation), 5.50%, 9/01/14 (b) 1,350 1,526,661
--------------------
20,061,979
================================================================================
Idaho -- 0.0%
Idaho Housing Agency, S/F Mortgage Revenue
Refunding Bonds, AMT, Series E-2,
6.90%, 1/01/27 105 108,594
================================================================================
Illinois -- 9.3%
Chicago, Illinois, Midway Airport Revenue Bonds,
Second Lien, VRDN, AMT, Series A, 2.65%,
1/01/29 (d)(h) 1,400 1,400,000
Chicago, Illinois, S/F Mortgage Revenue Bonds, AMT,
Series C, 7%, 3/01/32 (i)(j) 195 201,492
Chicago, Illinois, Special Assessment Bonds (Lake
Shore East), 6.75%, 12/01/32 800 807,960
Chicago, Illinois, Tax Allocation Bonds (Kingsbury
Redevelopment Project), Series A, 6.57%, 2/15/13 1,000 1,005,380
Chicago, Illinois, Water Revenue Refunding Bonds,
Second Lien, 5.25%, 11/01/33 (c) 1,325 1,396,100
Hodgkins, Illinois, Environmental Improvement
Revenue Bonds (Metro Biosolids Management
LLC Project), AMT, 6%, 11/01/23 2,800 2,802,716
Illinois Development Finance Authority Revenue
Bonds (Community Rehabilitation Providers
Facilities), Series A, 6.50%, 7/01/22 1,000 1,050,400
Illinois Development Finance Authority, Revenue
Refunding Bonds (Community Rehabilitation
Providers Facilities), Series A, 6%, 7/01/15 785 790,487
Illinois State Finance Authority Revenue Bonds:
(Friendship Village of Schaumburg), Series A,
5.625%, 2/15/37 500 405,195
(Landing At Plymouth Place Project), Series A,
6%, 5/15/37 1,035 931,862
McLean and Woodford Counties, Illinois, Community
Unit School District Number 005, GO, Refunding,
6.375%, 12/01/16 (c) 365 405,971
Regional Transportation Authority, Illinois,
Revenue Bonds:
Series A, 7.20%, 11/01/20 (k) 1,500 1,801,110
Series A, 6.70%, 11/01/21 (a) 7,000 8,338,750
Series C, 7.75%, 6/01/20 (a) 2,500 3,209,750
Village of Wheeling, Illinois, Revenue Bonds (North
Milwaukee/Lake-Cook TIF Redevelopment
Project), 6%, 1/01/25 1,580 1,443,172
--------------------
25,990,345
================================================================================
Indiana -- 7.3%
Indiana Health and Educational Facilities Financing
Authority, Hospital Revenue Bonds, Series A:
(Clarian Health Obligation),
5.25%, 2/15/40 2,200 2,133,692
(Schneck Memorial Hospital Project),
5.25%, 2/15/30 2,000 1,959,160
Indiana Transportation Finance Authority, Highway
Revenue Bonds, Series A:
7.25%, 6/01/15 2,000 2,276,518
6.80%, 12/01/16 3,775 4,327,585
Indianapolis, Indiana, Local Public Improvement
Bond Bank, Revenue Refunding Bonds, Series D,
6.75%, 2/01/14 8,750 9,802,538
--------------------
20,499,493
================================================================================
Iowa -- 1.1%
Iowa Financing Authority, S/F Mortgage Revenue
Refunding Bonds, AMT, Series E, 5.15%, 7/01/32 (j) 3,080 2,940,538
================================================================================
Kentucky -- 2.1%
Louisville and Jefferson County, Kentucky, Metropolitan
Government Health System, Revenue Refunding
Bonds (Norton Healthcare, Inc.), 5.25%, 10/01/36 6,150 5,990,285
================================================================================
Louisiana -- 9.1%
Louisiana HFA, S/F Mortgage Revenue Bonds
(Home Ownership Program), AMT, Series C-2,
5.20%, 6/01/39 (i)(j) 3,950 3,734,962
Louisiana Public Facilities Authority, Hospital Revenue
Bonds (Franciscan Missionaries of Our Lady Health
System, Inc.), Series A, 5.25%, 8/15/36 8,260 8,187,147
Port New Orleans, Louisiana, IDR, Refunding
(Continental Grain Company Project),
6.50%, 1/01/17 10,000 10,003,700
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008 7
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
================================================================================
Louisiana (concluded)
Sabine River Authority, Louisiana, Water Facilities
Revenue Refunding Bonds (International Paper
Company), 6.20%, 2/01/25 $3,600 $ 3,592,872
--------------------
25,518,681
================================================================================
Maryland -- 4.0%
Maryland State Community Development
Administration, Department of Housing and
Community Development, Residential Revenue
Bonds, AMT, Series H, 5.10%, 9/01/37 1,750 1,638,858
Maryland State Community Development
Administration, Department of Housing and
Community Development, Residential Revenue
Refunding Bonds, AMT, Series D, 4.90%, 9/01/42 1,500 1,340,535
Maryland State Energy Financing Administration,
Solid Waste Disposal Revenue Bonds, Limited
Obligation (Wheelabrator Water Projects), AMT,
6.45%, 12/01/16 2,000 2,020,280
Maryland State Health and Higher Educational
Facilities Authority Revenue Bonds:
(King Farm Presbyterian Community), Series B,
5%, 1/01/17 1,100 1,057,991
(University of Maryland Medical System),
Series B, 7%, 7/01/22 (a) 1,000 1,254,930
Maryland State Transportation Authority, Transportation
Facilities Projects Revenue Bonds, 5%, 7/01/41 2,300 2,364,492
Montgomery County, Maryland, Special Obligation,
GO (West Germantown Development District),
Series A, 6.70%, 7/01/27 (l) 1,220 1,347,100
--------------------
11,024,186
================================================================================
Massachusetts -- 6.4%
Massachusetts State College Building Authority,
Project Revenue Refunding Bonds, Senior-Series A,
7.50%, 5/01/11 (m) 1,000 1,135,020
Massachusetts State, HFA, Housing Revenue
Bonds, AMT:
Series A, 5.10%, 12/01/27 2,000 1,934,960
Series A, 5.20%, 12/01/37 3,000 2,855,640
Massachusetts State, HFA, Housing Revenue
Refunding Bonds, AMT, Series D, 4.85%, 6/01/40 2,770 2,454,442
Massachusetts State, HFA, S/F Housing Revenue
Bonds, AMT, Series 130, 5%, 12/01/32 2,720 2,541,214
Massachusetts State Water Resources Authority
Revenue Bonds, Series A, 6.50%, 7/15/19 (g) 6,000 7,043,880
--------------------
17,965,156
================================================================================
Michigan -- 6.2%
Flint, Michigan, Hospital Building Authority, Revenue
Refunding Bonds (Hurley Medical Center), Series A,
6%, 7/01/20 (n) 3,100 3,008,643
Macomb County, Michigan, Hospital Finance Authority,
Hospital Revenue Bonds (Mount Clemens General
Hospital), Series B, 5.875%, 11/15/34 4,320 4,012,848
Michigan State Hospital Finance Authority, Revenue
Refunding Bonds (Henry Ford Health System),
Series A, 5.25%, 11/15/46 7,050 6,788,586
Pontiac, Michigan, Tax Increment Finance Authority,
Revenue Refunding Bonds (Development Area
Number 3), 6.375%, 6/01/12 (b) 3,000 3,394,770
--------------------
17,204,847
================================================================================
Mississippi -- 6.6%
Lowndes County, Mississippi, Solid Waste Disposal
and PCR, Refunding (Weyerhaeuser Company
Project), Series A, 6.80%, 4/01/22 5,850 6,106,991
Mississippi Business Finance Corporation,
Mississippi, PCR, Refunding (System Energy
Resources Inc. Project):
5.875%, 4/01/22 7,200 7,141,536
5.90%, 5/01/22 5,215 5,161,181
--------------------
18,409,708
================================================================================
Missouri -- 0.0%
Missouri State Housing Development Commission,
S/F Mortgage Revenue Bonds (Homeowner Loan),
AMT, Series A, 7.50%, 3/01/31 (j) 85 89,521
================================================================================
Nebraska -- 0.0%
Nebraska Investment Finance Authority, S/F Housing
Revenue Bonds, AMT (j):
Series C, 6.30%, 9/01/28 (i) 15 15,199
Series D, 6.45%, 3/01/28 110 110,297
--------------------
125,496
================================================================================
Nevada -- 0.2%
Clark County, Nevada, Improvement District
Number 142, Special Assessment Bonds,
6.375%, 8/01/23 615 585,031
================================================================================
New Jersey -- 5.1%
New Jersey EDA, Cigarette Tax Revenue Bonds,
5.50%, 6/15/24 4,250 4,108,645
New Jersey EDA, Retirement Community Revenue
Bonds (Cedar Crest Village Inc. Facility), Series A,
7.25%, 11/15/11 (b) 2,435 2,807,920
New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT,
6.25%, 9/15/29 3,000 2,511,510
New Jersey Health Care Facilities Financing Authority
Revenue Bonds (Pascack Valley Hospital
Association), 6.625%, 7/01/36 1,680 1,081,920
Tobacco Settlement Financing Corporation of
New Jersey, Asset-Backed Revenue Bonds,
7%, 6/01/13 (b) 3,285 3,858,922
--------------------
14,368,917
================================================================================
New Mexico -- 1.1%
Farmington, New Mexico, PCR, Refunding (Tucson
Electric Power Company -- San Juan Project),
Series A, 6.95%, 10/01/20 3,160 3,190,020
================================================================================
New York -- 6.7%
Metropolitan Transportation Authority, New York,
Dedicated Tax Fund Revenue Bonds, VRDN,
Series D-2, 3.50%, 11/01/34 (d)(k) 7,500 7,500,000
New York City, New York, City IDA, Civic Facility
Revenue Bonds:
(British Airways Plc Project), AMT,
7.625%, 12/01/32 1,920 1,922,822
Series C, 6.80%, 6/01/28 690 717,338
(Special Needs Facility Pooled Program),
Series C-1, 6.50%, 7/01/17 890 885,052
New York City, New York, GO, Refunding, Series A,
6.375%, 5/15/15 (a) 40 42,905
8 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
================================================================================
New York (concluded)
New York City, New York, GO, Series F,
5.25%, 1/15/33 $1,660 $ 1,713,585
New York State Dormitory Authority, Revenue
Refunding Bonds, RIB, Series 305, 9.26%,
5/15/15 (d)(h) 1,500 1,746,540
Westchester County, New York, IDA, Civic Facility
Revenue Bonds (Special Needs Facilities Pooled
Program), Series E-1, 6.50%, 7/01/17 1,000 994,440
Westchester County, New York, IDA, Continuing Care
Retirement, Mortgage Revenue Bonds (Kendal on
Hudson Project), Series A, 6.50%, 1/01/13 (b) 2,690 3,052,047
--------------------
18,574,729
================================================================================
North Carolina -- 3.4%
Gaston County, North Carolina, Industrial Facilities
and Pollution Control Financing Authority, Revenue
Bonds (National Gypsum Company Project), AMT,
5.75%, 8/01/35 1,675 1,328,593
North Carolina Capital Facilities Finance Agency,
Revenue Refunding Bonds (Duke University Project),
Series A, 5%, 10/01/41 6,240 6,373,037
North Carolina Medical Care Commission, Retirement
Facilities Revenue Refunding Bonds (Carolina Village
Project), 6%, 4/01/38 2,000 1,901,500
--------------------
9,603,130
================================================================================
Ohio -- 5.4%
Buckeye Tobacco Settlement Financing Authority,
Ohio, Tobacco Settlement Asset-Backed Bonds,
Series A-2, 6.50%, 6/01/47 14,000 13,612,760
Trumbull County, Ohio, Health Care Facilities Revenue
Bonds (Shepherd of the Valley), VRDN, 6%,
10/01/31 (d)(l) 1,400 1,400,000
--------------------
15,012,760
================================================================================
Pennsylvania -- 5.4%
Allegheny County, Pennsylvania, IDA, Environmental
Improvement Revenue Refunding Bonds,
5.50%, 11/01/16 1,235 1,232,505
Bucks County, Pennsylvania, IDA, Retirement
Community Revenue Bonds (Ann's Choice Inc.),
Series A, 6.125%, 1/01/25 880 862,822
Lancaster County, Pennsylvania, Hospital Authority
Revenue Bonds (Brethren Village Project), Series A,
6.50%, 7/01/40 1,000 981,370
Montgomery County, Pennsylvania, IDA, Revenue
Bonds (Whitemarsh Continuing Care Project):
6.125%, 2/01/28 470 433,110
6.25%, 2/01/35 1,090 995,268
Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds
(National Gypsum Company), AMT, Series B,
6.125%, 11/01/27 2,000 1,718,740
Pennsylvania State Higher Educational Facilities
Authority Revenue Bonds (University of
Pennsylvania Medical Center Health System),
Series A, 6%, 1/15/31 1,250 1,325,038
Philadelphia, Pennsylvania, Authority for IDR,
Commercial Development, 7.75%, 12/01/17 1,265 1,266,278
Philadelphia, Pennsylvania, Hospitals and Higher
Education Facilities Authority, Hospital Revenue
Refunding Bonds (Children's Hospital Project),
VRDN, Series B, 2.47%, 7/01/25 (d) 1,800 1,800,000
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Bonds (Guthrie Healthcare System),
Series B (b):
5.85%, 12/01/11 2,425 2,687,046
7.125%, 12/01/11 1,350 1,631,840
--------------------
14,934,017
================================================================================
Rhode Island -- 0.5%
Rhode Island State Health and Educational Building
Corporation, Hospital Financing Revenue Bonds
(Lifespan Obligation Group), 6.50%, 8/15/12 (b) 1,140 1,295,063
================================================================================
South Carolina -- 0.1%
South Carolina Housing Finance and Development
Authority, Mortgage Revenue Bonds, AMT, Series A,
6.70%, 7/01/27 155 159,808
================================================================================
Tennessee -- 1.6%
Johnson City, Tennessee, Health and Educational
Facilities Board, Retirement Facility Revenue Bonds
(Appalachian Christian Village Project), Series A,
6%, 2/15/24 1,000 947,200
Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue
Refunding Bonds (Methodist Healthcare),
6.50%, 9/01/12 (b) 3,175 3,631,851
--------------------
4,579,051
================================================================================
Texas -- 16.9%
Austin, Texas, Convention Center Revenue Bonds
(Convention Enterprises Inc.), First Tier, Series A,
6.70%, 1/01/11 (b) 4,510 4,953,062
Brazos River Authority, Texas, PCR, Refunding (TXU
Energy Company LLC Project), AMT, Series A,
7.70%, 4/01/33 1,500 1,459,440
Brazos River, Texas, Harbor Navigation District,
Brazoria County Environmental Revenue Refunding
Bonds (Dow Chemical Company Project), AMT,
Series A-7, 6.625%, 5/15/33 5,800 5,945,406
Dallas-Fort Worth, Texas, International Airport,
Joint Revenue Bonds, AMT (h):
Series B, 6.25%, 11/01/28 4,500 4,525,965
Series C, 6.25%, 11/01/28 3,450 3,491,124
Dallas-Fort Worth, Texas, International Airport, Joint
Revenue Refunding Bonds, AMT, Sub-Series A-2,
6.10%, 11/01/24 (h) 1,500 1,516,875
Guadalupe-Blanco River Authority, Texas, Sewage
and Solid Waste Disposal Facility Revenue Bonds
(E. I. du Pont de Nemours and Company Project),
AMT, 6.40%, 4/01/26 2,500 2,504,075
Judson, Texas, Independent School District, School
Building, GO, 5%, 2/01/37 (e) 4,000 4,056,320
Port Corpus Christi, Texas, Revenue Refunding Bonds
(Celanese Project), AMT:
Series B, 6.70%, 11/01/30 2,500 2,349,850
Series A, 6.45%, 11/01/30 800 742,416
San Antonio, Texas, Electric and Gas Revenue Bonds,
Series A, 5.75%, 2/01/10 (b) 7,500 7,933,725
Texas State Department of Housing and Community
Affairs, S/F Mortgage Revenue Bonds, AMT,
Series B, 5.25%, 9/01/32 (i)(j) 4,975 4,802,368
Texas State University, System Financing Revenue
Refunding Bonds, 5%, 3/15/30 (c) 2,750 2,809,070
--------------------
47,089,696
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008 9
Schedule of Investments (continued) (Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
===============================================================================
Virginia -- 0.7%
Chesterfield County, Virginia, IDA, PCR, Refunding
(Virginia Electric and Power Company), Series B,
5.875%, 6/01/17 $1,000 $ 1,062,900
Fairfax County, Virginia, EDA, Residential Care
Facilities, Mortgage Revenue Refunding Bonds
(Goodwin House, Inc.), 5.125%, 10/01/37 1,000 871,070
--------------------
1,933,970
===============================================================================
Washington -- 11.7%
Central Puget Sound Regional Transportation
Authority, Washington, Sales and Use Tax Revenue
Bonds, Series A:
5%, 11/01/32 7,700 7,905,128
5%, 11/01/36 1,650 1,690,128
Energy Northwest, Washington, Electric Revenue
Refunding Bonds (Columbia Generating), Series B,
6%, 7/01/18 (k) 2,250 2,442,690
Energy Northwest, Washington, Electric Revenue
Refunding Bonds, DRIVERS, VRDN, Series 248,
8.644%, 7/01/18 (d)(h) 500 574,480
Washington State, GO, Series B, 6%, 1/01/10 (b)(c) 10,815 11,455,248
Washington State Public Power Supply System,
Revenue Refunding Bonds:
(Nuclear Project Number 1), Series B,
7.125%, 7/01/16 5,000 6,177,650
(Nuclear Project Number 3), Series B,
7.125%, 7/01/16 (h) 1,900 2,350,528
--------------------
32,595,852
===============================================================================
Wisconsin -- 0.8%
Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (SynergyHealth Inc.),
6%, 11/15/32 2,215 2,164,897
===============================================================================
U.S. Virgin Islands -- 2.2%
Virgin Islands Government Refinery Facilities,
Revenue Refunding Bonds (Hovensa Coker
Project), AMT, 6.50%, 7/01/21 6,000 6,154,260
-------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $411,434,932) -- 149.9% $418,875,688
===============================================================================
Municipal Bonds Transferred to Par
Tender Option Bond Trusts (o) (000) Value
===============================================================================
Florida -- 3.2%
Miami-Dade Cnty Florida Aviation Revenue Bonds,
AMT, Miami International Airport, Airport and
Marina Imports, 5%, 10/1/2040 (p) 10,000 9,048,203
===============================================================================
Illinois -- 4.6%
Kane and De Kalb Counties, Illinois, Community
Unity School District Number 302, GO (a):
5.75%, 2/01/14 (b) 1,000 1,133,350
5.75%, 2/01/19 4,225 4,788,404
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds
(McCormick Place Expansion Project), Series B,
5.75%, 6/15/23 (h) 6,400 6,870,976
--------------------
12,792,730
===============================================================================
Massachusetts -- 3.7 %
Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A,
5%, 8/15/30 (c) 10,000 10,226,100
===============================================================================
New York -- 6.9 %
New York City, New York, City Transitional Finance
Authority Revenue Bonds, Future Tax Secured,
Series B, 6.25%, 11/15/18 6,750 7,338,195
New York State Dormitory Authority, State University
Educational Facilities, Revenue Refunding Bonds,
Series 1989, 6%, 5/15/10 (b)(h) 11,000 11,903,980
--------------------
19,242,175
===============================================================================
Texas -- 4.1 %
Harris County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds (School
Health Care System), Series B, 5.75%, 7/1/27 (g) 10,000 11,371,600
===============================================================================
Washington -- 4.6 %
Central Puget Sound Regional Transportation
Authority, Washington, Sales and Use Tax Revenue
Bonds, Transit Imports, Series A:
5%, 11/1/36 4,000 4,098,820
5%, 11/1/34 5,000 5,123,525
Energy Northwest, Washington, Electric Revenue
Refunding Bonds (Columbia Generating Station),
Series A, 5.75%, 7/1/18 (h) 3,500 3,760,680
--------------------
12,983,025
-------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts
(Cost -- $74,344,625) -- 27.1% 75,663,833
===============================================================================
Total Investments (Cost -- $485,779,557*) -- 177.0% 494,539,521
Liabilities in Excess of Other Assets -- (1.4%) (3,930,704)
Liability for Trust Certificates, Including Interest
Expense and Fees Payable -- (12.9 %) (36,090,297)
Preferred Stock, at Redemption Value -- (62.7%) (175,163,760)
------------
Net Assets Applicable to Common Stock -- 100.0% $279,354,760
============
10 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
Schedule of Investments (concluded) (Percentages shown are based on Net Assets)
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ................................... $ 451,148,130
=============
Gross unrealized appreciation .................... $ 19,142,453
Gross unrealized depreciation .................... (11,555,506)
-------------
Net unrealized appreciation ...................... $ 7,586,947
=============
(a) FGIC Insured.
(b) U.S. government securities, held in escrow, are used to pay interest on
this security, as well as to retire the bond in full at the date
indicated, typically at a premium to par.
(c) FSA Insured.
(d) Variable rate security. Rate shown is as of report date. Maturity shown is
the final maturity date.
(e) Assured Guaranty Insured.
(f) Non-income producing security.
(g) Security is collateralized by municipal or U.S. Treasury obligations.
(h) MBIA Insured.
(i) FHLMC Collateralized.
(j) FNMA/GNMA Collateralized.
(k) AMBAC Insured.
(l) Radian Insured.
(m) Commonwealth Guaranteed
(n) ACA Insured.
(o) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of
the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(p) XL Capital Insured.
(q) Issuer filed for bankruptcy or is in default of interest payments.
See Notes to Financial Statements.
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008 11
Statement of Assets and Liabilities
April 30, 2008 (Unaudited)
===============================================================================
Assets
-------------------------------------------------------------------------------
Investments at value -- unaffiliated (cost -- $485,779,557) .... $ 494,539,521
Cash ........................................................... 93,127
Interest receivable ............................................ 8,812,570
Investments sold receivable .................................... 3,844,475
Prepaid expenses ............................................... 2,333
-------------
Total assets ................................................... 507,292,026
-------------
===============================================================================
Accrued Liabilities
-------------------------------------------------------------------------------
Investments purchased payable .................................. 14,922,426
Income dividends payable -- Common Stock ....................... 1,442,632
Interest expense and fees payable .............................. 285,853
Investment advisory fees payable ............................... 186,226
Other affiliates payable ....................................... 2,680
Other accrued expenses payable ................................. 129,245
-------------
Total accrued liabilities ...................................... 16,969,062
-------------
===============================================================================
Other Liabilities
-------------------------------------------------------------------------------
Trust certificates1 ............................................ 35,804,444
-------------
Total Liabilities .............................................. 52,773,506
-------------
===============================================================================
Preferred Stock
-------------------------------------------------------------------------------
Preferred Stock, at redemption value, par value $0.05 per share
(1,800 Series A Shares, 1,800 Series B Shares, 1,800 Series C
Shares) and $0.10 per share (1,600 Series D Shares)
authorized, issued and outstanding at $25,000 per share
liquidation preference ....................................... 175,163,760
-------------
===============================================================================
Net Assets Applicable to Common Stock
-------------------------------------------------------------------------------
Net Assets applicable to Common Stock .......................... $ 279,354,760
=============
===============================================================================
Analysis of Net Assets Applicable to Common Stock
-------------------------------------------------------------------------------
Common Stock, par value $0.10 per share (20,318,758 shares
issued and outstanding) ...................................... $ 2,031,876
Paid-in capital in excess of par ............................... 283,175,457
Undistributed net investment income ............................ 1,792,940
Accumulated net realized loss .................................. (16,405,477)
Net unrealized appreciation/depreciation ....................... 8,759,964
-------------
Net Assets, equivalent to $13.75 net asset value per share of
Common Stock ................................................. $ 279,354,760
=============
1 Represents short-term floating rate certificates issued by tender option
bond trusts.
2 Related to tender option bond trusts.
Statement of Operations
Six Months Ended April 30, 2008 (Unaudited)
===============================================================================
Investment Income
-------------------------------------------------------------------------------
Interest ....................................................... $ 13,551,464
-------------
Total income ................................................... 13,551,464
-------------
===============================================================================
Expenses
-------------------------------------------------------------------------------
Investment advisory ............................................ $ 1,145,822
Transfer agent ................................................. 17,777
Commissions for Preferred Stock ................................ 225,067
Accounting services ............................................ 78,558
Professional ................................................... 38,983
Printing ....................................................... 19,691
Directors ...................................................... 19,594
Custodian ...................................................... 13,977
Registration ................................................... 4,594
Miscellaneous .................................................. 46,706
-------------
Total expenses, excluding interest expense and fees: ........... 1,610,769
Interest expense and fees2 ..................................... 578,499
-------------
Total expenses ................................................. 2,189,268
-------------
Net investment income .......................................... 11,362,196
-------------
===============================================================================
Realized and Unrealized Gain/(Loss)
-------------------------------------------------------------------------------
Net realized loss from:
Investments .................................................. (3,578,453)
Swaps ........................................................ (1,113,822)
-------------
(4,692,275)
-------------
Net change in unrealized appreciation/depreciation on:
Investments .................................................. (10,147,368)
Swaps ........................................................ 427,302
-------------
(9,720,066)
-------------
Total realized and unrealized loss ............................. (14,412,341)
-------------
===============================================================================
Dividends and Distributions to Preferred Stock Shareholders from:
-------------------------------------------------------------------------------
Net investment income .......................................... (3,235,084)
Net realized gain .............................................. (21,598)
-------------
Total dividends and distributions .............................. (3,256,682)
-------------
Net Decrease in Net Assets Applicable to Common Stock
Shareholders Resulting from Operations ......................... $ (6,306,827)
=============
See Notes to Financial Statements.
12 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
Statements of Changes in Net Assets
Six Months
Ended
April 30, Year Ended
2008 October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2007
================================================================================================================================
Operations
--------------------------------------------------------------------------------------------------------------------------------
Net investment income .................................................................. $ 11,362,196 $ 23,451,287
Net realized gain (loss) ............................................................... (4,692,275) 2,851,750
Net change in unrealized appreciation/depreciation ..................................... (9,720,066) (19,973,083)
Dividends and distributions to Preferred Stock shareholders from:
Net investment income ................................................................ (3,235,084) (6,403,711)
Net realized gain .................................................................... (21,598) --
-----------------------------------
Net decrease in net assets resulting from operations ................................... (6,306,827) (73,757)
-----------------------------------
================================================================================================================================
Dividends and Distributions to Common Stock Shareholders From:
--------------------------------------------------------------------------------------------------------------------------------
Net investment income .................................................................. (8,644,870) (17,386,821)
Net realized gain ...................................................................... (55,812) --
-----------------------------------
Decrease in net assets resulting from dividends and distributions to
Common Stock shareholders ............................................................ (8,700,682) (17,386,821)
-----------------------------------
================================================================================================================================
Capital Stock Transactions
--------------------------------------------------------------------------------------------------------------------------------
Reinvestment of common dividends ....................................................... 526,086 1,322,155
-----------------------------------
================================================================================================================================
Net Assets Applicable to Common Stock Shareholders
--------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets ........................................................... (14,481,423) (16,138,423)
Beginning of period .................................................................... 293,836,183 309,974,606
-----------------------------------
End of period .......................................................................... $ 279,354,760 $ 293,836,183
===================================
End of period undistributed net investment income ...................................... $ 1,792,940 $ 2,310,698
===================================
See Notes to Financial Statements.
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008 13
Financial Highlights
Six Months
Ended
April 30, Year Ended October 31,
2008 ---------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .................. $ 14.49 $ 15.35 $ 15.13 $ 15.21 $ 14.76 $ 14.16
--------------------------------------------------------------------------
Net investment income 1 ............................... 0.56 1.16 1.16 1.19 1.17 1.17
Net realized and unrealized gain (loss) ............... (0.71) (0.84) 0.35 0.04 0.44 0.49
Dividends and distributions to Preferred
Stock shareholders from:
Net investment income ............................. (0.16) (0.32) (0.29) (0.18) (0.07) (0.07)
Net realized gain ................................. -- 2 -- -- -- -- --
--------------------------------------------------------------------------
Net increase (decrease) from investment operations .... (0.31) -- 1.22 1.05 1.54 1.59
--------------------------------------------------------------------------
Dividends to Common Stock shareholders from:
Net investment income ............................. (0.43) (0.86) (1.00) (1.10) (1.09) (0.99)
Net realized gain ................................. -- 2 -- -- -- -- --
--------------------------------------------------------------------------
Total dividends and distributions to Common
Stock shareholders .................................. (0.43) (0.86) (1.00) (1.10) (1.09) (0.99)
--------------------------------------------------------------------------
Capital charges with respect to issuance of shares .... -- -- -- (0.03) -- --
--------------------------------------------------------------------------
Net asset value, end of period ........................ $ 13.75 $ 14.49 $ 15.35 $ 15.13 $ 15.21 $ 14.76
==========================================================================
Market price, end of period ........................... $ 14.05 $ 13.91 $ 16.29 $ 15.40 $ 15.15 $ 14.26
==========================================================================
===================================================================================================================================
Total Investment Return 3
-----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .............................. (2.13%) 4 (0.02%) 8.36% 6.88% 10.94% 11.88%
==========================================================================
Based on market price ................................. 4.17% 4 (9.56%) 12.98% 9.21% 14.38% 14.56%
==========================================================================
===================================================================================================================================
Ratios to Average Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding interest
expense and fees 5,6 ................................ 1.13% 7 1.12% 1.11% 1.07% 0.99% 1.01%
==========================================================================
Total expenses after waiver5 .......................... 1.54% 7 1.67% 1.61% 1.35% 1.16% 1.19%
==========================================================================
Total expenses5 ....................................... 1.54% 7 1.67% 1.61% 1.35% 1.16% 1.19%
==========================================================================
Net investment income5 ................................ 7.97% 7 7.74% 7.70% 7.76% 7.86% 8.01%
==========================================================================
Dividends to Preferred Stock shareholders ............. 2.27% 7 2.11% 1.90% 1.14% 0.46% 0.46%
==========================================================================
Net investment income to Common Stock shareholders .... 5.70% 7 5.63% 5.80% 6.62% 7.40% 7.55%
==========================================================================
===================================================================================================================================
Supplemental Data
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end of
period (000) ........................................ $279,355 $ 293,836 $ 309,975 $ 303,701 $ 303,448 $ 293,753
==========================================================================
Preferred Stock outstanding at liquidation preference,
end of period (000) ................................. $175,000 $ 175,000 $ 175,000 $ 175,000 $ 135,000 $ 135,000
==========================================================================
Portfolio turnover .................................... 32% 43% 60% 64% 20% 29%
==========================================================================
Asset coverage, end of period (000) ................... $ 2,596 $ 2,679 $ 2,771 $ 2,735 $ 3,248 $ 3,176
==========================================================================
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effect of sales
charges.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Stock shareholders.
6 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
7 Annualized.
See Notes to Financial Statements.
14 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock MuniVest Fund II, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a non-diversified,
closed-end management investment company. The Fund's financial statements are
prepared in conformity with accounting principles generally accepted in the
United States of America, which may require the use of management accruals and
estimates. Actual results may differ from these estimates. The Fund determines
and makes available for publication the net asset value of its Common Stock on a
daily basis.
The following is a summary of significant accounting policies followed by the
Fund:
Valuation of Investments: Municipal investments (including commitments to
purchase such investments on a "when-issued" basis) are valued on the basis of
prices provided by dealers or pricing services selected under the supervision of
the Fund's Board of Directors (the "Board"). In determining the value of a
particular investment, pricing services may use certain information with respect
to transactions in such investments, quotations from bond dealers, pricing
matrixes, market transactions in comparable investments and various
relationships between investments. Short-term securities may be valued at
amortized cost. Swap agreements are valued by quoted fair values received daily
by the Fund's pricing service.
In the event that application of these methods of valuation results in a price
for an investment which is deemed not to be representative of the market value
of such investment, the investment will be valued by a method approved by the
Board as reflecting fair value ("Fair Value Assets"). When determining the price
for Fair Value Assets, the investment advisor and/or sub-advisor seeks to
determine the price that the Fund might reasonably expect to receive from the
current sale of that asset in an arm's-length transaction. Fair value
determinations shall be based upon all available factors that the investment
advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets
is subsequently reported to the Board or a committee thereof.
Derivative Financial Instruments: The Fund may engage in various portfolio
investment strategies to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise if the value of the contract decreases due to an
unfavorable change in the price of the underlying security or if the
counterparty does not perform under the contract.
o Forward interest rate swaps -- The Fund may enter into forward interest
rate swaps, which are over-the-counter ("OTC") contracts. In a forward
interest rate swap, the Fund and the counter-party agree to make periodic
net payments on a specified notional contract amount, commencing on a
specified future effective date, unless terminated earlier. These periodic
payments received or made by the Fund are recorded in the accompanying
Statement of Operations as realized gains or losses, respectively. Gains
or losses are also realized upon termination of the swap agreements. Swaps
are marked-to-market daily and changes in value are recorded as unrealized
appreciation (depreciation). The Fund generally intends to close each
forward interest rate swap before the accrual date specified in the
agreement and therefore avoid entering into the interest rate swap
underlying each forward interest rate swap.
Forward Commitments and When-Issued Delayed Delivery Securities: The Fund may
purchase securities on a when-issued basis and may purchase or sell securities
on a forward commitment basis. Settlement of such transactions normally occurs
within a month or more after the purchase or sale commitment is made. The Fund
may purchase securities under such conditions only with the intention of
actually acquiring them, but may enter into a separate agreement to sell the
securities before the settlement date. Since the value of securities purchased
may fluctuate prior to settlement, the Fund may be required to pay more at
settlement than the security is worth. In addition, the purchaser is not
entitled to any of the interest earned prior to settlement. Upon making a
commitment to purchase a security on a when-issued basis, the Fund will hold
liquid assets worth at least the equivalent of the amount due.
Municipal Bonds Transferred to Tender Option Bond Trusts: The Fund leverages its
assets through the use of tender option bond trusts ("TOBs"). A TOB is
established by a third party sponsor forming a special purpose entity, into
which one or more funds, or an agent on behalf of the funds, transfers municipal
securities. Other funds managed by the investment advisor may also contribute
municipal securities to a TOB into which the Fund has contributed 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 ("TOB Residuals"), which are generally issued to the participating
funds that made the transfer or to affiliates of the Fund. The TOB Residuals
held by the Fund include the right of the Fund (1) to cause the holders of a
proportional share of the floating rate certificates to tender their
certificates at par, and (2) to transfer, within seven days, a corresponding
share of the municipal securities from the TOB to the Fund. The cash received by
the TOB from the sale of the short-term floating rate certificates, less
transaction expenses, is paid to the Fund, which typically invests the cash in
additional municipal securities. The Fund's transfer of the municipal securities
to a TOB is accounted for as a secured borrowing, therefore the municipal
securities deposited into a TOB are presented in the Fund's Schedule of
Investments and the proceeds from the transaction are reported as a liability of
the Fund. Similarly, proceeds from residual certificates issued to affiliates,
if any, from the transaction are included in liability for trust certificates.
Interest income from the underlying security is recorded by the Fund on an
accrual basis. Interest expense incurred on the secured borrowing and other
expenses related to remarketing, administration and trustee services to a TOB
are reported as expenses of the Fund. The floating rate certificates have
interest rates that generally reset weekly and their holders have
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008 15
Notes to Financial Statements (continued)
the option to tender certificates to the TOB for redemption at par at each reset
date. At April 30, 2008, the aggregate value of the underlying municipal
securities transferred to TOBs was $75,663,833, the related liability for trust
certificates was $35,804,444 and the range of interest rates on the liability
for trust certificates was 2.31% to 2.90%.
Financial transactions executed through TOBs generally will underperform the
market for fixed rate municipal bonds in a rising interest rate environment, but
tend to outperform the market for fixed rate bonds when interest rates decline
or remain relatively stable. Should short-term interest rates rise, the Fund's
investment in TOBs likely will adversely affect the Fund's investment income and
distributions to Common Stock shareholders. Fluctuations in the market value of
municipal securities deposited into the TOB may adversely affect the Fund's net
asset value per share.
Zero-Coupon Bonds: The Fund may invest in zero-coupon bonds, which are normally
issued at a significant discount from face value and do not provide for periodic
interest payments. Zero-coupon bonds may experience greater volatility in market
value than similar maturity debt obligations which provide for regular interest
payments.
Segregation: In cases in which the 1940 Act and the interpretive positions of
the Securities and Exchange Commission ("SEC") require that the Fund segregate
assets in connection with certain investments (e.g., swaps and when-issued
securities), the Fund will, consistent with certain interpretive letters issued
by the SEC, designate on its books and records cash or other liquid debt
securities having a market value at least equal to the amount that would
otherwise be required to be physically segregated.
Investment Transactions and Investment Income: Investment transac-tions 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 date.
Interest income is recognized on the accrual method. The Fund amortizes all
premiums and discounts on debt securities.
Dividends and Distributions: Dividends from net investment income are declared
daily and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates. Dividends and distributions to holders of Preferred Stock are
accrued and determined as described in Note 4.
Income Taxes: It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
Effective April 30, 2008, the Fund implemented Financial Accounting Standards
Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income
Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48
prescribes the minimum recognition threshold a tax position must meet in
connection with accounting for uncertainties in income tax positions taken or
expected to be taken by an entity, including investment companies, before being
measured and recognized in the financial statements. The investment advisor has
evaluated the application of FIN 48 to the Fund, and has determined that the
adoption of FIN 48 does not have a material impact on the Fund's financial
statements. The Fund files U.S. federal and various state and local tax returns.
No income tax returns are currently under examination. The statute of
limitations on the Fund's U.S. federal tax returns remain open for the years
ended October 31, 2004 through October 31, 2006. The statutes of limitations on
the Fund's state and local tax returns may remain open for an additional year
depending upon the jurisdiction.
Recent Accounting Pronouncements: In September 2006, Statement of Financial
Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"), was issued
and is effective for fiscal years beginning after November 15, 2007. FAS 157
defines fair value, establishes a framework for measuring fair value and expands
disclosures about fair value measurements. The impact on the Fund's financial
statements disclosures, if any, is currently being assessed.
In addition, in February 2007, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), which is effective for fiscal years beginning after November 15,
2007. Early adoption is permitted as of the beginning of a fiscal year that
begins on or before November 15, 2007, provided the entity also elects to apply
the provisions of FAS 157. FAS 159 permits entities to choose to measure many
financial instruments and certain other items at fair value that are not
currently required to be measured at fair value. FAS 159 also establishes
presentation and disclosure requirements designed to facilitate comparisons
between entities that choose different measurement attributes for similar types
of assets and liabilities. The impact on the Fund's financial statement
disclosures, if any, is currently being assessed.
In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures
about Derivative Instruments and Hedging Activities -- an amendment of FASB
Statement No. 133" ("FAS 161"), was issued and is effective for fiscal years
beginning after November 15, 2008. FAS 161 is intended to improve financial
reporting for derivative instruments by requiring enhanced disclosure that
enables investors to understand how and why an entity uses derivatives, how
derivatives are accounted for, and how derivative instruments affect an entity's
results of operations and financial position. The investment advisor is
currently evaluating the implications of FAS 161 and the impact on the Fund's
financial statement disclosures, if any, is currently being assessed.
Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan:
Under the deferred compensation plan approved by the Fund's Board,
non-interested Directors ("Independent Directors") may defer a portion of their
annual complex-wide compensation. Deferred amounts earn an approximate return as
though equivalent dollar amounts
16 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
Notes to Financial Statements (continued)
have been invested in common shares of other certain BlackRock Closed-End Funds
selected by the Independent Directors. This has approximately the same economic
effect for the Independent Directors as if the Independent Directors had
invested the deferred amounts directly in other certain BlackRock Closed-End
Funds.
The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Fund. The
Fund may, however, elect to invest in common stock of other certain BlackRock
Closed-End Funds selected by the Independent Directors in order to match its
deferred compensation obligations.
Other: Expenses directly related to the Fund are charged to the Fund. Other
operating expenses shared by several funds are pro-rated among those funds on
the basis of relative net assets or other appropriate methods.
2. Investment Advisory Agreement and Other Transactions with Affiliates:
The Fund entered into an Investment Advisory Agreement with BlackRock Advisors,
LLC (the "Advisor"), an indirect, wholly owned subsidiary of BlackRock, Inc., to
provide investment advisory and administration services. Merrill Lynch & Co.,
Inc. ("Merrill Lynch") and The PNC Financial Services Group, Inc. are principal
owners of BlackRock, Inc.
The Advisor is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Fund. For such services, the Fund
pays the Advisor a monthly fee at an annual rate of 0.50% of the average daily
value of the Fund's net assets, including proceeds from the issuance of
Preferred Stock and TOBs.
The Advisor has entered into a separate sub-advisory agreement with BlackRock
Investment Management, LLC. ("BIM"), an affiliate of the Advisor, under which
the Advisor pays BIM for services it provides, a monthly fee that is a
percentage of the investment advisory fee paid by the Fund to the Advisor.
For the six months ended April 30, 2008, the Fund reimbursed the Advisor $4,108,
for certain accounting services, which is included in accounting services
expenses in the Statement of Operations.
Certain officers and/or directors of the Fund are officers and/or directors of
BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended April 30, 2008, were $157,140,799 and $162,978,457, respectively.
4. Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of stock, including Preferred
Stock, par value $0.10 per share, all of which were initially classified as
Common Stock. The Board is authorized, however, to reclassify any unissued
shares of stock without approval of holders of Common Stock.
Common Stock
Shares issued and outstanding for the six months ended April 30, 2008 and the
year ended October 31, 2007 increased 38,143 and 87,529, respectively, as a
result of dividend reinvestment.
Preferred Stock
Preferred Stock of the Fund has a par value of $0.05 per share (Series A, Series
B and Series C Shares), and $0.10 per share (Series D Shares) and a liquidation
preference of $25,000 per share, plus accrued and unpaid dividends, that
entitles its holders to receive cash dividends at varying annualized rates for
each dividend period. The yields in effect at April 30, 2008 were as follows:
Series A, 2.77%; Series B, 3.03%; Series C, 3.49% and Series D, 4.37%.
The Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate of 0.25%, calculated on the aggregate principal amount. For
the six months ended April 30, 2008, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commissions of
$113,071.
Dividends on seven-day Preferred Stock are cumulative at a rate which is reset
every seven days based on the results of an auction. Dividends on 28-day
Preferred Stock are cumulative at a rate which is reset every 28 days based on
the results of an auction. If the Preferred Stock fails to clear the auction on
an auction date, the Fund is required to pay the maximum applicable rate on the
Preferred Stock to holders of such shares for each successive dividend period
until such time as the stock is successfully auctioned. The maximum applicable
rate on the Preferred Stock, for Series A, B and C, is the higher of 110% of the
AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index
rate divided by 1.00 minus the marginal tax rate and for Series D is the higher
of 110% plus or times the Telerate/BBA LIBOR or 110% of 90% of the Kenny S&P
30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. During
the six months ended April 30, 2008, the Preferred Stock of the Fund was
successfully auctioned at each auction date until February 13, 2008. The low,
high and average dividend rates on the Preferred Stock for the Fund for the six
months ended April 30, 2008 were as follows:
-------------------------------------------------------------------------------
Low High Average
-------------------------------------------------------------------------------
Series A .................... 2.772% 4.600% 3.691%
Series B .................... 3.031% 4.750% 3.718%
Series C .................... 2.000% 4.500% 3.575%
Series D .................... 3.090% 5.198% 3.944%
-------------------------------------------------------------------------------
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008 17
Notes to Financial Statements (concluded)
Since February 13, 2008, the Preferred Stock of the Fund failed to clear any of
its auctions. As a result, the Preferred Stock dividend rates were reset to the
maximum applicable rate, which ranged from 2.772% to 5.198%. A failed auction is
not an event of default for the Fund but it is a liquidity event for the holders
of the Preferred Stock. A failed auction occurs when there are more sellers of a
fund's auction rate preferred stock than buyers. It is impossible to predict how
long this imbalance will last. An auction for the Fund's Preferred Stock may not
occur for some time, if ever, and even if liquidity does resume, holders of the
Preferred Stock may not have the ability to sell the Preferred Stock at its
liquidation preference.
The Fund may not declare dividends or make other distributions on Common Stock
or purchase any such shares if, at the time of the declaration, distribution or
purchase, asset coverage with respect to the outstanding Preferred Stock is less
than 200%.
The Preferred Stock is redeemable at the option of the Fund, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared, if certain requirements relating to the
composition of the assets and liabilities of the Fund, as set forth in the
Fund's Articles Supplementary, are not satisfied.
The holders of Preferred Stock have voting rights equal to the holders of Common
Stock (one vote per share) and will vote together with holders of Common Stock
(one vote per share) as a single class. However, holders of Preferred Stock,
voting as a separate class, are also entitled to elect two Directors for the
Fund. In addition, the 1940 Act requires that along with approval by
shareholders that might otherwise be required, the approval of the holders of a
majority of any outstanding Preferred Stock, voting separately as a class would
be required to (a) adopt any plan of reorganization that would adversely affect
the Preferred Stock, (b) change the Fund's subclassification as a closed-end
investment company or change its fundamental investment restrictions or (c)
change its business so as to cease to be an investment company.
5. Capital Loss Carryforward:
As of October 31, 2007, the Fund had a capital loss carryforward of $6,784,310,
all of which expires in 2008. This amount will be available to offset future
realized capital gains.
6. Concentration Risk:
The Fund's investments are concentrated in certain states, which may be affected
by adverse financial, social, environmental, economic, regulatory and political
factors.
Many municipalities insure repayment of their bonds, which reduces the risk of
loss due to issuer default. The market value of these bonds may fluctuate for
other reasons and there is no assurance that the issuer will meet its
obligation.
7. Subsequent Events:
The Fund paid a tax-exempt income dividend to holders of its Common Stock in the
amount of $0.071000 per share on June 2, 2008 to shareholders of record on May
15, 2008.
The dividends declared on Preferred Stock for the period May 1, 2008 to May 31,
2008 were as follows: Series A, $116,040; Series B, $121,115; Series C, $113,373
and Series D, $129,336.
On June 2, 2008, the Fund announced the following redemptions of Preferred Stock
at a price of $25,000 per share plus any accrued and unpaid dividends through
the redemption date:
--------------------------------------------------------------------------------
Redemption Shares to be Aggregate
Series Date Redeemed Price
--------------------------------------------------------------------------------
A ............... 7/03/2008 249 $6,225,000
B ............... 7/10/2008 249 $6,225,000
C ............... 6/26/2008 249 $6,225,000
D ............... 6/24/2008 221 $5,525,000
--------------------------------------------------------------------------------
The Fund will finance the Preferred Stock redemptions with cash received from
TOB transactions.
18 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
Officers and Directors
G. Nicholas Beckwith, III, Director
Richard E. Cavanagh, Director
Richard S. Davis, Director
Kent Dixon, Director
Frank J. Fabozzi, Director
Kathleen F. Feldstein, Director
James T. Flynn, Director
Henry Gabbay, Director
Jerrold B. Harris, Director
R. Glenn Hubbard, Director
W. Carl Kester, Director
Karen P. Robards, Director
Robert S. Salomon, Jr., Director
Donald C. Burke, Fund President and Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance Officer of the Fund
Howard Surloff, Secretary
Custodian
The Bank of New York Mellon
New York, NY 10286
Transfer Agent
Common Stock and Preferred Stock:
BNY Mellon Shareowner Services
Jersey City, NJ 07310
Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008 19
Additional Information
Dividend Policy
The Fund's dividend policy is to distribute all or a portion of its net
investment income to its shareholders on a monthly basis. In order to provide
shareholders with a more stable level of dividend distributions, the Fund may at
times pay out less than the entire amount of net investment income earned in any
particular month and may at times in any particular month pay out such
accumulated but undistributed income in addition to net investment income earned
in that month. As a result, the dividends paid by the Fund for any particular
month may be more or less than the amount of net investment income earned by the
Fund during such month. The Fund's current accumulated but undistributed net
investment income, if any, is disclosed in the Statement of Net Assets, which
comprises part of the financial information included in this report.
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at
http://www.sec.gov and may also be reviewed and copied at the SEC's Public
Reference Room in Washington, DC. Information on the operation of the Public
Reference Room may be obtained by calling (800) SEC-0330. The Fund's Forms N-Q
may also be obtained upon request and without charge by calling (800) 441-7762.
Electronic Delivery
Electronic copies of most financial reports are available on the Fund's website
or shareholders can sign up for e-mail notifications of quarterly statements,
annual and semi-annual reports by enrolling in the Fund's electronic delivery
program.
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.
20 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
Additional Information (continued)
General Information
The Fund will mail only one copy of shareholder documents, including annual and
semi-annual reports and proxy statements, to shareholders with multiple accounts
at the same address. This practice is commonly called "householding" and it is
intended to reduce expenses and eliminate duplicate mailings of shareholder
documents. Mailings of your shareholder documents may be householded
indefinitely unless you instruct us otherwise. If you do not want the mailing of
these documents to be combined with those for other members of your household,
please contact the Fund at (800) 441-7762.
Quarterly performance, semi-annual and annual reports and other information
regarding the Fund may be found on BlackRock's website, which can be accessed at
http://www.blackrock.com. This reference to BlackRock's website is intended to
allow investors public access to information regarding the Fund and does not,
and is not intended to, incorporate BlackRock's website into this report.
Deposit Securities
Effective May 30, 2008, following approval by the Fund's Board and the
applicable ratings agencies, the definition of "Deposited Securities" in the
Fund's Articles Supplementary was amended in order to facilitate the redemption
of the Fund's Preferred Stock. The following phrase was added to the definition
of "Deposit Securities" found in the Fund's Articles Supplementary:
; provided, however, that solely in connection with any redemption of
AMPS, the term Deposit Securities shall include (i) any committed
financing pursuant to a credit agreement, reverse repurchase agreement
facility or similar credit arrangement, in each case which makes available
to the Corporation, no later than the day preceding the applicable
redemption date, cash in an amount not less than the aggregate amount due
to Holders by reason of the redemption of their shares of AMPS on such
redemption date; and (ii) cash amounts due and payable to the Corporation
out of a sale of its securities if such cash amount is not less than the
aggregate amount due to Holders by reason of the redemption of their
shares of AMPS on such redemption date and such sale will be settled not
later than the day preceding the applicable redemption date.
BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008 21
Additional Information (concluded)
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund
investors and individual clients (collectively, "Clients") and to safeguarding
their non-public personal information. The following information is provided to
help you understand what personal information BlackRock collects, how we protect
that information and why in certain cases we share such information with select
parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you
from different sources, including the following: (i) information we receive from
you or, if applicable, your financial intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that may
be of interest to you. In addition, BlackRock restricts access to non-public
personal information about its Clients to those BlackRock employees with a
legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public
personal information of its Clients, including procedures relating to the proper
storage and disposal of such information.
22 BLACKROCK MUNIVEST FUND II, INC. APRIL 30, 2008
This report is transmitted to shareholders only. It is not a prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. The Fund has leveraged its Common Stock,
which creates risks for Common Stock shareholders, including the likelihood of
greater volatility of net asset value and market price of shares of the Common
Stock, and the risk that fluctuations in the short-term dividend rates of the
Preferred Stock, currently set at the maximum reset rate as a result of failed
auctions, may affect the yield to Common Stock shareholders. Statements and
other information herein are as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free (800) 441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's website
at http://www.sec.gov. Information about how the Fund voted proxies relating to
securities held in the Fund's portfolio during the most recent 12-month period
ended June 30 is available upon request and without charge (1) at
www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and
Exchange Commission's website at http://www.sec.gov.
BlackRock MuniVest Fund II, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
BLACKROCK
#16807-4/08
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this
semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this
semi-annual report
Item 6 - Investments
(a) The registrant's Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual
period covered since the previous Form N-CSR filing.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-annual
report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the Board recommended by shareholders when a vacancy
becomes available. Shareholders who wish to recommend a nominee
should send nominations which include biographical information and
set forth the qualifications of the proposed nominee to the
registrant's Secretary. There have been no material changes to these
procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock MuniVest Fund II, Inc.
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock MuniVest Fund II, Inc.
Date: June 23, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock MuniVest Fund II, Inc.
Date: June 23, 2008
By: /s/ Neal J. Andrews
-----------------------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniVest Fund II, Inc.
Date: June 23, 2008