N-Q 1 d380483dnq.htm BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-08573

Name of Fund:   BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock

            MuniHoldings California Quality Fund, Inc., 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2017

Date of reporting period: 4/30/2017

 

Item 1 – Schedule of Investments

 

Schedule of Investments April 30, 2017 (Unaudited)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par
(000)		     Value  

California — 104.8%

                 
Corporate — 2.7%             

California Pollution Control Financing Authority, Refunding RB, Waste Management, Inc., AMT:

     

Series A-1, 3.38%, 7/01/25

    $ 5,000     $ 5,199,350  

Series B-1, 3.00%, 11/01/25

      9,000       9,091,170  

City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34

      2,435       2,650,229  
    

 

 

  
        16,940,749  
County/City/Special District/School District — 33.9%             

Centinela Valley Union High School District, GO, Election of 2010, Series A, 5.75%, 8/01/21 (a)

      9,120       10,790,054  

County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 2/01/19 (a)

      3,500       3,805,795  

County of Los Angeles California Public Works Financing Authority, Refunding RB, Series D, 5.00%, 12/01/45

      1,430       1,613,955  

County of Orange California Sanitation District, COP, Series A, 5.00%, 2/01/19 (a)

      2,500       2,674,950  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/21 (a)

      2,665       3,130,336  

County of Ventura California Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/18 (a)

      4,000       4,235,800  

Culver City Redevelopment Finance Authority California, Refunding, Tax Allocation Bonds, Series A (AGM), 5.60%, 11/01/25

      3,750       3,763,950  

Denair California Unified School District, GO, CAB (AGM), Election of 2007, 0.00%, 8/01/41 (b)

      4,260       1,426,930  

Desert Community College District California, GO, Election of 2004, Series C (AGM), 5.00%, 8/01/17 (a)

      16,530       16,710,508  

Fremont Union High School District, GO, Refunding, 4.00%, 8/01/40

      2,500       2,594,025  
Municipal Bonds    Par
(000)		     Value  

California (continued)

                 
County/City/Special District/School District (continued)        

Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 8/01/40

    $ 5,500     $ 6,288,755  

Gavilan Joint Community College District, GO, Election of 2004, Series D:

     

5.50%, 8/01/31

      2,170       2,499,341  

5.75%, 8/01/35

      8,400       9,623,040  

Grossmont California Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/21 (a)

      2,000       2,394,760  

Imperial Irrigation District, Series A, Electric System Revenue (a):

     

5.13%, 11/01/18

      6,530       6,950,858  

5.13%, 11/01/18

      1,470       1,564,742  

Kern Community College District, GO, Safety Repair & Improvements, Series C:

     

5.25%, 11/01/32

      5,715       6,691,008  

5.75%, 11/01/34

      12,085       14,480,126  

Los Alamitos Unified School District, GO, Refunding, School Facilities Improvement:

     

5.25%, 8/01/23 (a)

      2,185       2,659,801  

5.25%, 8/01/39

      1,515       1,746,386  

Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC), 5.00%, 8/01/17 (a)

      6,645       6,717,696  

Los Rios Community College District, GO, Election of 2008, Series A, 5.00%, 8/01/35

      11,000       12,110,670  

Mount San Jacinto Community College District, GO, Series A, 5.00%, 8/01/35

      3,565       4,077,362  

Oxnard Union High School District, GO, Refunding, Election of 2004, Series A (AGM), 5.00%, 8/01/35

      10,000       10,976,300  

Redlands Unified School District California, GO, Election of 2008 (AGM), 5.25%, 7/01/33

      5,000       5,244,250  

Rio Elementary School District, GO, Series A, 5.25%, 8/01/40

      5,865       6,717,478  

Riverside Community College District Foundation, GO, Election of 2004 (a):

     

Series C (AGM), 5.00%, 8/01/17

      8,750       8,844,587  

Series C (NPFGC), 5.00%, 8/01/17

      8,910       9,006,317  
 

 

                
   BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017    1

Schedule of Investments (continued)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

Municipal Bonds    Par
(000)		     Value  

California (continued)

                 
County/City/Special District/School District (continued)        

Riverside County Public Financing Authority, Tax Allocation Bonds, Series A (BAM),
4.00%, 10/01/40 (c)

    $ 2,545     $ 2,557,827  

San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A,
5.50%, 2/01/19 (a)

      905       976,205  

San Jose California Financing Authority, LRB, Convention Center Expansion & Renovation Project, Series A:

     

5.75%, 5/01/36

      2,560       2,567,987  

5.75%, 5/01/42

      4,500       5,135,760  

San Jose California Financing Authority, Refunding LRB, Civic Center Project, Series A, 5.00%, 6/01/39

      5,800       6,520,302  

San Marcos Redevelopment Agency Successor Agency, Refunding, Tax Allocation Bonds, Series A:

     

5.00%, 10/01/32

      1,700       1,951,430  

5.00%, 10/01/33

      1,125       1,285,088  

Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/19 (a)

      5,635       6,250,060  

Solano County Community College District, GO, Election of 2012, Series C, 5.25%, 8/01/42

      1,150       1,373,606  

West Contra Costa California Unified School District, GO:

     

Election of 2010, Series A (AGM), 5.25%, 8/01/41

      5,390       6,105,630  

Election of 2010, Series B, 5.50%, 8/01/39

      3,195       3,734,859  

Election of 2012, Series A, 5.50%, 8/01/39

      2,500       2,922,425  

Yuba Community College District, GO, BAM, Election of 2006, Series C, 0.00%, 8/01/38 (b)

      5,150       2,115,208  
    

 

 

  
        212,836,167  
Education — 1.7%             

California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42

      2,750       3,130,380  
Municipal Bonds    Par
(000)		     Value  

California (continued)

                 
Education (continued)             

California Municipal Finance Authority, Refunding RB, Biola University:

     

5.00%, 10/01/37

    $ 500     $ 561,310  

5.00%, 10/01/39

      500       559,000  

University of California, Refunding RB, Series AO, 5.00%, 5/15/40

      5,430       6,205,404  
    

 

 

  
        10,456,094  
Health — 12.7%             

ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series B, 6.25%, 8/01/39

      6,305       6,951,073  

California Health Facilities Financing Authority, RB:

     

Children’s Hospital, Series A,
5.25%, 11/01/41

      8,000       8,882,000  

Providence Health Services, Series B,
5.50%, 10/01/39

      4,130       4,478,613  

Sutter Health, Series B,
6.00%, 8/15/42

      9,655       10,973,776  

California Health Facilities Financing Authority, Refunding RB, Series A:

     

Dignity Health, 6.00%, 7/01/19 (a)

      3,700       4,096,973  

Providence Health and Services, 5.00%, 10/01/38

      10,970       12,342,676  

St. Joseph Health System, 5.00%, 7/01/37

      10,000       11,179,100  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A:

     

5.00%, 2/01/37

      3,110       3,446,533  

5.00%, 2/01/42

      5,250       5,781,878  

California Statewide Communities Development Authority, Refunding RB:

     

CHF Irvine LLC, 5.00%, 5/15/40

      750       811,185  

John Muir Health, Series A, 5.00%, 8/15/51

      1,635       1,807,394  

Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41

      6,235       6,918,481  
 

 

                
2    BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

Municipal Bonds

    Par
(000)		     Value  

California (continued)

                 
Health (continued)             

Washington Township Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/38

    $ 1,625     $ 1,912,463  
    

 

 

  
        79,582,145  
State — 7.6%             

State of California, GO:

     

Various Purposes, 6.00%, 3/01/33

      5,000       5,638,500  

Various Purposes, 6.00%, 4/01/38

      27,765       30,384,350  

Refunding, Veterans Bond, 4.00%, 12/01/40

      4,000       4,086,680  

State of California Public Works Board, LRB:

     

Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

      3,670       4,034,027  

Various Capital Projects, Series I, 5.50%, 11/01/33

      2,015       2,398,656  

State of California Public Works Board, RB, California State Prisons, Series C, 5.75%, 10/01/31

      1,205       1,397,644  
    

 

 

  
        47,939,857  
Transportation — 23.9%             

Alameda Corridor Transportation Authority, Refunding RB, 2nd Subordinate Lien, Series B, 5.00%, 10/01/35

      1,500       1,677,990  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series D, 1.35%, 4/01/45 (d)

      5,000       5,001,300  

City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39

      9,650       10,582,769  

City & County of San Francisco California Airports Commission, Refunding ARB, AMT:

     

2nd Series 34E (AGM), 5.75%, 5/01/22

      4,950       5,170,473  

2nd Series A, 5.00%, 5/01/29

      6,435       7,299,349  

City & County of San Francisco California Airports Commission, Refunding RB, AMT (AGM):

     

2nd Series 32, 5.75%, 5/01/18 (a)

      2,290       2,400,126  

Balance 2nd, 5.75%, 5/01/24

      2,710       2,837,695  

Municipal Bonds

    Par
(000)		     Value  

California (continued)

                 
Transportation (continued)             

City of Los Angeles California Department of Airports, ARB:

     

AMT, Senior Series A, 5.00%, 5/15/40

    $ 3,830     $ 4,249,653  

AMT, Series D, 5.00%, 5/15/35

      2,000       2,250,580  

AMT, Series D, 5.00%, 5/15/36

      1,500       1,680,030  

Los Angeles International Airport, Senior Series D, 5.25%, 5/15/29

      2,590       2,903,079  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:

     

Senior, 5.00%, 5/15/40

      3,000       3,310,020  

5.25%, 5/15/39

      5,845       6,312,951  

City of San Jose California, Refunding ARB, Series A-1, AMT:

     

5.25%, 3/01/23

      3,785       4,247,603  

6.25%, 3/01/34

      1,400       1,628,816  

County of Orange California, ARB, Series B, 5.75%, 7/01/34

      6,345       6,397,854  

County of Sacramento California, Refunding ARB, Senior Series A, 5.00%, 7/01/41

      2,500       2,794,075  

County of Sacramento California, ARB:

     

Senior Series A (AGC), 5.50%, 7/01/18 (a)

      8,200       8,648,704  

Senior Series B, 5.75%, 7/01/39

      2,650       2,786,846  

Senior Series B, AMT (AGM), 5.75%, 7/01/28

      13,275       13,980,566  

Senior Series B, AMT (AGM), 5.25%, 7/01/33

      18,000       18,814,140  

Senior Series B, AMT (AGM), 5.25%, 7/01/39

      4,995       5,190,504  

County of Sacramento California Airport System Revenue, Refunding ARB, Airport System Subordinate Revenue, Sub-Series B, 5.00%, 7/01/41

      1,250       1,392,888  

County of San Bernardino California Transportation Authority, RB, Series A, 5.25%, 3/01/40

      4,545       5,236,840  

Norman Y Mineta San Jose International Airport SJC, Refunding RB, AMT, Series A:

     

5.00%, 3/01/41

      3,075       3,439,787  
 

 

                
   BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017    3

Schedule of Investments (continued)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

Municipal Bonds

    Par
(000)		     Value  

California (continued)

                 
Transportation (continued)             

Norman Y Mineta San Jose International Airport SJC, Refunding RB, AMT, Series A (continued):

     

5.00%, 3/01/47

    $ 11,770     $ 13,104,247  

Port of Los Angeles California Harbor Department, RB, Series B, 5.25%, 8/01/19 (a)

      5,530       6,052,088  

Port of Los Angeles California Harbor Department, Refunding RB, Series A, AMT, 5.00%, 8/01/44

      500       548,690  
    

 

 

  
        149,939,663  
Utilities — 22.3%             

Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36

      2,200       2,481,380  

City of Los Angeles California Department of Water & Power, RB, Series A:

     

5.38%, 7/01/38

      9,375       10,021,969  

5.00%, 7/01/41

      1,705       1,949,684  

City of Los Angeles California Department of Water & Power, Refunding RB, Series A:

     

5.25%, 7/01/39

      16,000       18,112,640  

Water System, 5.00%, 7/01/46

      5,845       6,659,968  

City of Los Angeles California Wastewater System, Refunding RB, Sub-Series A, 5.00%, 6/01/28

      2,000       2,218,100  

City of San Francisco California Public Utilities Commission Water Revenue, RB:

     

Series A, 5.00%, 11/01/39

      5,245       5,832,912  

Series B, 5.00%, 11/01/19 (a)

      10,000       10,972,600  

County of Kern California Water Agency Improvement District No. 4, Refunding RB, Series A (AGM):

     

4.00%, 5/01/35

      1,460       1,509,129  

4.00%, 5/01/36

      1,430       1,470,340  

County of Los Angeles Sanitation Districts Financing Authority, RB, Series A, 4.00%, 10/01/42

      4,935       4,992,937  

County of Sacramento California Sanitation Districts Financing Authority, RB, (NPFGC), 5.00%, 12/01/36

      1,010       1,027,645  

Municipal Bonds

    Par
(000)		     Value  

California (continued)

                 
Utilities (continued)             

Dublin-San Ramon Services District Water Revenue, Refunding RB, 6.00%, 8/01/41

    $ 4,000     $ 4,625,480  

East Bay California Municipal Utility District Wastewater System Revenue, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/17 (a)

      5,000       5,019,400  

East Bay California Municipal Utility District Water System Revenue, Refunding RB (a):

     

Series A (NPFGC), 5.00%, 6/01/17

      6,670       6,695,613  

Sub-Series A (AGM), 5.00%, 6/01/17

      10,000       10,038,400  

Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/18 (a)

      2,505       2,626,568  

El Dorado Irrigation District / El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 3/01/39

      10,000       11,475,200  

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A (a):

     

5.25%, 5/15/19

      10,000       10,860,700  

5.25%, 5/15/19

      1,060       1,151,234  

San Diego Public Facilities Financing Authority Water, Refunding RB, Series B, 5.50%, 8/01/19 (a)

      8,000       8,794,160  

San Juan Water District, Refunding RB, San Juan & Citrus Heights, 5.25%, 2/01/33

      7,325       8,372,695  

Santa Clara Valley Water District, Refunding RB, Series A, 5.00%, 6/01/46

      3,000       3,439,140  
    

 

 

  
        140,347,894  

Total Municipal Bonds — 104.8%

              658,042,569  
 

 

                
4    BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

    Par
(000)		     Value  

California — 63.0%

                 
County/City/Special District/School District — 30.3%        

County of Alameda California Joint Powers Authority, Refunding LRB, (AGM), 5.00%, 12/01/17 (a)

    $ 13,180     $ 13,503,305  

County of Riverside California Public Financing Authority, RB, Capital Facilities Project, 5.25%, 11/01/45

      10,000       11,500,281  

County of San Luis California Obispo Community College District, GO, Refunding, Election of 2014, Series A, 4.00%, 8/01/40

      6,585       6,752,450  

County of San Mateo California Community College District, GO, Series A, 5.00%, 9/01/45

      17,615       20,113,323  

Foothill-De Anza Community College District, GO, Series C, 5.00%, 8/01/21 (a)

      40,000       46,248,400  

Los Angeles Community College District California, GO (a):

     

Election of 2001, Series E-1, 5.00%, 8/01/18

      11,770       12,387,219  

Election of 2003, Series F-1, 5.00%, 8/01/18

      10,000       10,524,400  

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/19 (a)

      9,596       10,662,058  

Palomar California Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/44

      15,140       17,162,098  

Sacramento Area Flood Control Agency, Refunding RB, Consolidated Capital Assessment District No.2, 5.00%, 10/01/43

      9,990       11,364,524  

Southwestern Community College District, GO, Election of 2008, Series D, 5.00%, 8/01/44

      10,820       12,239,909  

Municipal Bonds Transferred to

Tender Option Bond Trusts (e)

    Par
(000)		     Value  

California (continued)

                 
County/City/Special District/School District (continued)        

West Valley-Mission Community College District, GO, Election of 2012, Series B, 4.00%, 8/01/40

    $ 17,000     $ 17,753,270  
    

 

 

  
        190,211,237  
Education — 5.8%     

University of California, RB:

     

Residual Certificates, Series 2015-ZM0151, 14.43%, 5/15/34 (d)(f)

      11,193       12,261,804  

Series AM, 5.25%, 5/15/44

      10,210       11,827,877  

University of California, Refunding RB:

     

Series A, 5.00%, 11/01/43

      6,001       6,838,077  

Series AF, 5.00%, 5/15/39

      5,000       5,682,400  
    

 

 

  
        36,610,158  
Health — 14.8%     

California Health Facilities Financing Authority, RB:

     

Kaiser Permanente, Sub-Series, A-2, 4.00%, 11/01/44

      17,720       17,841,027  

Sutter Health, Series A, 5.00%, 8/15/52

      14,520       15,706,139  

California Health Facilities Financing Authority, Refunding RB:

     

Lucile Salter Packard Children’s Hospital, Series B, 5.00%, 8/15/55

      4,500       4,970,925  

Sutter Health, Series A, 5.00%, 8/15/43

      19,425       21,550,801  

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42

      19,070       20,821,961  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series L, 5.00%, 5/15/41

      10,375       11,735,973  
    

 

 

  
        92,626,826  
Transportation — 4.0%     

City of Los Angeles California Department of Airports, RB, AMT:

     

Los Angeles International Airport, Series B, 5.00%, 5/15/41

      3,641       4,079,783  

Senior Revenue, Series A, 5.00%, 5/15/40

      5,500       6,102,635  
 

 

                
   BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017    5

Schedule of Investments (continued)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts(e)

    Par(000)     Value  
California (continued)               
Transportation (continued)             

City of Los Angeles California Department of Airports, Series D, 5.00%, 5/15/41

    $ 13,331     $ 14,742,847  
    

 

 

  
               24,925,265  
Utilities — 8.1%     

City of Los Angeles California Wastewater System, RB, Green Bonds, Series A, 5.00%, 6/01/44

      13,790       15,641,445  

County of San Diego California Water Authority Financing Corp., COP, Refunding, Series A (AGM) (a):

     

5.00%, 5/01/18

      2,777       2,893,863  

5.00%, 5/01/18

      13,963       14,549,552  

East Bay California Municipal Utility District Water System Revenue, RB, Series C, 5.00%, 6/01/44

      11,000       12,538,900  

Rancho Water District Financing Authority, Refunding RB, Series A (AGM):

     

5.00%, 8/01/18 (a)

      2,013       2,114,428  

5.00%, 8/01/34

      2,995       3,145,997  
    

 

 

  
               50,884,185  

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 63.0%

              395,257,671  
Total Long-Term Investments
(Cost — $1,006,931,250) — 167.8%		              1,053,300,240  
Short-Term Securities   

Shares

     Value  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.70% (g)(h)

      12,103,179     $ 12,105,600  
Total Short-Term Securities
(Cost — $12,104,970) — 1.9%		       12,105,600  

Total Investments

(Cost — $1,019,036,220*) — 169.7%

 

 

     1,065,405,840  

Other Assets Less Liabilities — 0.7%

 

     5,228,195  

Liability for TOB Trust Certificates, Including
Interest Expense and Fees Payable — (30.0)%

 

     (188,680,870 ) 

VMTP Shares at Liquidation Value — (40.4)%

 

     (254,000,000 ) 
    

 

 

  

Net Assets Applicable to Common Shares — 100.0%

 

   $ 627,953,165  
    

 

 

  

 

*   As of April 30, 2017, gross unrealized appreciation and depreciation based on cost for U.S. federal income tax purposes were as follows:

 

Tax cost

   $ 831,123,699  
 

 

 

  

Gross unrealized appreciation

   $ 49,478,979  

Gross unrealized depreciation

     (3,472,103 ) 
 

 

 

  

Net unrealized appreciation

   $ 46,006,876  
 

 

 

  
 
Notes to Schedule of Investments
(a)   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.

 

(b)   Zero-coupon bond.

 

(c)   When-issued security.

 

(d)   Variable rate security. Rate as of period end.

 

(e)   Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing.

 

(f)   Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

(g)   During the period ended April 30, 2017, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

                
6    BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

 

Affiliate   Shares Held
at July 31,
2016		     

Net

Activity

      Shares Held
at April 30,
2017		     

Value at

April 30, 2017

      Income     

Net

Realized

Gain 1

     

Change in
Unrealized

Appreciation

  
BlackRock Liquidity Funds, MuniCash, Institutional Class     —        12,103,179        12,103,179      $ 12,105,600      $ 33,196      $ 1,430      $ 630  

 

1   

Includes net capital gain distributions.

(h)   Current yield as of period end.

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts

 

  

Contracts

Short

     Issue   Expiration  

Notional

Value

     Unrealized
Depreciation		  
  (88 )    5-Year U.S. Treasury Note   June 2017   $ 10,419,750     $ (47,694 ) 
  (215 )    10-Year U.S. Treasury Note   June 2017   $ 27,029,531       (192,969 ) 
  (114 )    Long U.S. Treasury Bond   June 2017   $ 17,438,438       (210,908 ) 
  (32 )    Ultra U.S. Treasury Bond   June 2017   $ 5,214,000       (65,607 ) 
 

Total

     $ (517,178 ) 
       

 

 

  

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BAM    Build America Mutual Assurance Co.
CAB    Capital Appreciation Bonds
CHF    Swiss Franc
COP    Certificates of Participation
GO    General Obligation Bonds
LRB    Lease Revenue Bonds
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds

 

                
   BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017    7

Schedule of Investments (continued)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 – unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

 

  •  

Level 2 – other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

 

  •  

Level 3 – unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1      Level 2      Level 3      Total  

Assets:

            
Investments:            

Long Term Investments 1

      —      $ 1,053,300,240        —      $ 1,053,300,240  

Short-Term Securities

    $ 12,105,600        —        —        12,105,600  
  

 

 

  

Total

    $ 12,105,600      $ 1,053,300,240        —      $ 1,065,405,840  
  

 

 

  
                                  
Derivative Financial Instruments 2            

Liabilities:

            

Interest rate contracts

    $ (517,178 )       —        —      $ (517,178 ) 

1   See above Schedule of Investments for values in each sector.

    

2   Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.

    

 

                
8    BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017   

Schedule of Investments (concluded)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1      Level 2      Level 3      Total  

Liabilities:

           

TOB Trust Certificates

     —      $ (188,275,265 )       —      $ (188,275,265 ) 

VMTP Shares at Liquidation Value

     —        (254,000,000 )       —        (254,000,000 ) 
 

 

 

  

Total

     —      $ (442,275,265 )       —      $ (442,275,265 ) 
 

 

 

  

During the period ended April 30, 2017, there were no transfers between levels.

 

                
   BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017    9

Item 2 – Controls and Procedures

 

2(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.
2(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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BlackRock MuniHoldings California Quality Fund, Inc.
By:     /s/ John M. Perlowski                        
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock MuniHoldings California Quality Fund, Inc.

Date: June 22, 2017

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/ John M. Perlowski                        
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock MuniHoldings California Quality Fund, Inc.

Date: June 22, 2017

 

By:     /s/ Neal J. Andrews                        
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock MuniHoldings California Quality Fund, Inc.

Date: June 22, 2017