UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-07083

 

Name of Fund:   BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield
Arizona 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: 07/31/2021

Date of reporting period: 01/31/2021


Item 1 –

Report to Stockholders

(a) The Report to Shareholders is attached herewith.


LOGO  

JANUARY 31, 2021

 

 

 

 

2021 Semi-Annual Report

(Unaudited)

 

BlackRock MuniYield Arizona Fund, Inc. (MZA)

BlackRock MuniYield California Fund, Inc. (MYC)

BlackRock MuniYield Investment Fund (MYF)

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee  

 

 


Supplemental Information  (unaudited)

 

Section 19(a) Notices

BlackRock MuniYield Investment Fund’s (MYF) (the “Fund”) amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

 

January 31, 2021

 

                                                             
     Total Cumulative Distributions
for the Fiscal Period
           % Breakdown of the Total Cumulative
Distributions for the Fiscal Period
 
Fund Name   Net
Income
    Net Realized
Capital Gains
Short-Term
    Net Realized
Capital Gains
Long-Term
    Return of
Capital(a)
    Total Per
Common
Share
           Net
Income
    Net Realized
Capital Gains
Short-Term
    Net Realized
Capital Gains
Long-Term
    Return of
Capital
    Total Per
Common
Share
 

MYF

  $ 0.295610     $     $     $   0.041200     $   0.336810               88             12     100

 

  (a) 

The Fund estimates that it has distributed more than its net income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.” When distributions exceed total return performance, the difference will reduce the Fund’s net asset value per share.

 

Section 19(a) notices for the Funds, as applicable, are available on the BlackRock website at blackrock.com.

 

 

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2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of January 31, 2021 has been a time of sudden change, as the emergence and spread of the coronavirus (or “COVID-19”) led to a vast disruption in the global economy and financial markets. The threat from the virus became increasingly apparent throughout February and March 2020, and countries around the world took economically disruptive countermeasures. Stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off, and unemployment claims spiked, causing a global recession and a sharp fall in equity prices.

After markets hit their lowest point of the reporting period in late March 2020, a steady recovery ensued, as businesses began to re-open and governments learned to adapt to life with the virus. Equity prices continued to rise throughout the summer, fed by strong fiscal and monetary support and improving economic indicators. Many equity indices neared or surpassed all-time highs late in the reporting period following a series of successful vaccine trials and passage of additional stimuli. In the United States, both large- and small-capitalization stocks posted a significant advance. International equities from developed economies grew at a more modest pace, lagging emerging market stocks, which rebounded sharply.

During the market downturn, the performance of different types of fixed-income securities initially diverged due to a reduced investor appetite for risk. U.S. Treasuries benefited from the risk-off environment and posted positive returns, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) dropped to historic lows. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and both investment-grade and high-yield bonds recovered to post positive returns.

Following the coronavirus outbreak, the Fed instituted two emergency interest rate cuts, pushing short-term interest rates, already low as the year began, close to zero. To stabilize credit markets, the Fed also implemented a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruptions have clearly hindered worldwide economic growth, we believe that the global expansion is likely to accelerate as vaccination efforts continue to ramp up. Significant additional U.S. stimulus spending in early 2021 is being negotiated in Congress, which would provide a solid tailwind for economic growth. Inflation should increase somewhat as the expansion continues, but a shift in central bank policy means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the equity expansion.

Overall, we favor a positive stance toward risk, with an overweight in both equities and credit. We see U.S. and Asian equities benefiting from structural growth trends in tech, while emerging markets should be particularly helped by a vaccine-led economic expansion. In credit, rising inflation should provide tailwinds for inflation-protected bonds, and Euro area peripherals and Asian bonds also present attractive opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of January 31, 2021
    

 

 6-Month 

 

 

 

 12-Month 

 

 

U.S. large cap equities
(S&P 500® Index)

 

 

 

14.47%

 

 

 

17.25%

 

 

U.S. small cap equities
(Russell 2000® Index)

 

 

 

40.89

 

 

 

30.17

 

 

International equities
(MSCI Europe, Australasia, Far East Index)

 

 

 

17.58

 

 

 

8.94

 

 

Emerging market equities
(MSCI Emerging Markets Index)

 

 

 

24.07

 

 

 

27.89

 

 

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

 

 

 

0.06

 

 

 

0.54

 

 

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

 

 

 

(4.56)

 

 

 

4.91

 

 

U.S. investment grade bonds
(Bloomberg Barclays U.S. Aggregate Bond Index)

 

 

 

(0.91)

 

 

 

4.72

 

 

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

 

 

 

2.06

 

 

 

3.85

 

 

U.S. high yield bonds
(Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)

 

 

 

6.72

 

 

 

7.38

 

 

Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

 

T H I S  P A G E  I S  N O T  P A R T  O F  Y O U R  F U N D  R E P O R T

  3


Table of Contents

 

      Page  

Supplemental Information

     2  

The Markets in Review

     3  

Semi-Annual Report:

  

Municipal Market Overview

     5  

The Benefits and Risks of Leveraging

     6  

Derivative Financial Instruments

     6  

Fund Summary

     7  

Financial Statements:

  

Schedules of Investments

     19  

Statements of Assets and Liabilities

     41  

Statements of Operations

     42  

Statements of Changes in Net Assets

     43  

Statements of Cash Flows

     45  

Financial Highlights

     46  

Notes to Financial Statements

     50  

Additional Information

     59  

Glossary of Terms Used in this Report

     63  

 

 

4       


Municipal Market Overview  For the Reporting Period Ended January 31, 2021

 

Municipal Market Conditions

Municipal bonds posted positive total returns during the period amid increased volatility. Initial strong performance reversed abruptly as a result of the COVID-19 pandemic induced economic shutdown. Performance plummeted -10.87% during a two-week period in March 2020, before rebounding on valuation-based buying. (For comparison, the -11.86% correction in 2008 spanned more than a month.) Fiscal stimulus, monetary policy accommodation, and the partial re-opening of the economy combined to stabilize the market and drive strong performance throughout the summer months. Performance briefly stalled on U.S. election uncertainty, but more recently benefited from a favorable technical backdrop, vaccine optimism, and expectation for additional fiscal aid from the newly unified Democratic government.

 

 

Strong technical support during most of the period temporarily waned as COVID-19 fears spurred risk-off sentiment resulting in record outflows. During the 12 months ended January 31, 2021, municipal bond funds experienced net inflows totaling $40 billion, drawn down by nearly $46 billion in outflows during the months of March and April 2020 (based on data from the Investment Company Institute). For the same 12-month period, new issuance was robust at $448 billion but slowed during the height of the pandemic as market liquidity became constrained amid the flight to quality. Taxable

 

 

S&P Municipal Bond Index

  Total Returns as of January 31, 2021 

    6 months: 2.06%

  12 months: 3.85%

 

municipal issuance was elevated as issuers increasingly advance refunded tax-exempt debt in the taxable municipal market for cost savings.

A Closer Look at Yields

 

LOGO

 

From January 31, 2020 to January 31, 2021, yields on AAA-rated 30-year municipal bonds decreased by 42 basis points (“bps”) from 1.80% to 1.38%, while ten-year rates decreased by 43 bps from 1.15% to 0.72% and five-year rates decreased by 62 bps from 0.84% to 0.22% (as measured by Thomson Municipal Market Data). As a result, the municipal yield curve bull steepened over the 12-month period with the spread between two- and 30-year maturities steepening by 30 bps, lagging the 106 bps of steepening experienced in the U.S. Treasury curve.

 

After dislocating at the height of the pandemic, consistent municipal outperformance in the intermediate and long-end of the curve has resulted in extremely rich valuations with ten- and 30-year municipal-to-Treasury ratios at all-time tights.

Financial Conditions of Municipal Issuers

The COVID-19 pandemic has been an unprecedented shock to the system impacting nearly every sector in the municipal market. Fortunately, most states and municipalities were in excellent fiscal health before the crisis, and the federal government is poised to provide another massive federal aid injection. Direct state and local government aid will provide additional support to own-source government tax receipts, which have outperformed the dire predictions made earlier in 2020. Essential public services such as power, water, and sewer remain protected segments. State housing authority bonds, flagship universities, and strong national and regional health systems have absorbed the impact of the economic shock. While some segments face daunting financial challenges, the combination of new federal stimulus and vaccine distribution should augment economic activity and, consequently, bolster revenue receipts in these sectors as well. Critical providers (safety net hospitals, mass transit systems, airports) with limited resources may still experience fiscal strain, but the additional aid and the re-opening of the economy should bring better operating results in the second half of 2021. BlackRock anticipates that a small subset of the market, mainly non-rated stand-alone projects, will remain susceptible to credit deterioration. Again, however, the effective vaccine regimen and prospects for improved distribution suggest that a rebound in economic activity could reduce the number of potential defaults in riskier non-rated credits. While credit fundamentals are expected to improve noticeably across the municipal space, BlackRock advocates careful credit selection as the market must still navigate near-term uncertainty.

The opinions expressed are those of BlackRock as of January 31, 2021 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (“AMT”). Capital gains distributions, if any, are taxable.

The S&P Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

 

M U N I C I P A L  M A R K E T  O V E R V I E W

  5


The Benefits and Risks of Leveraging

 

The Funds may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage (after paying the leverage costs) is paid to shareholders in the form of dividends, and the value of these portfolio holdings (less the leverage liability) is reflected in the per share NAV.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Fund’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Fund’s financing cost of leverage is significantly lower than the income earned on a Fund’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed a Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if a Fund had not used leverage. Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of each Fund’s obligations under its respective leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Fund’s intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Fund’s Common Shares than if the Fund were not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Fund to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of each Fund’s investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Funds’ investment adviser will be higher than if the Funds did not use leverage.

To obtain leverage, each Fund has issued Variable Rate Demand Preferred Shares (“VRDP Shares” or “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Fund is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Fund may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Fund segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Fund’s obligations under the TOB Trust (including accrued interest), then the TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements imposed by the 1940 Act.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

6  

2021  B L A C K R O C K  S E M I - A N N U A L R E P O R T  T O  S H A R E H O L D E R S


Fund Summary  as of January 31, 2021    BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Investment Objective

BlackRock MuniYield Arizona Fund, Inc.’s (MZA) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal and Arizona income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Arizona income taxes. Under normal market conditions, the Fund expects to invest at least 75% of its assets in municipal obligations that are investment

grade quality, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. The Fund may invest directly in securities or synthetically through the use of derivatives.

On June 16, 2020, the Board of Directors of MZA and the Board of Directors of BlackRock MuniYield Quality Fund, Inc. (MQY) each approved the reorganization of MZA into MQY. The reorganization was approved by each Fund’s shareholders and is expected to occur during the second quarter of 2021, subject to the satisfaction of customary closing conditions.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information

 

Symbol on New York Stock Exchange

  MZA

Initial Offering Date.

  October 29, 1993

Yield on Closing Market Price as of January 31, 2021 ($15.48)(a)

  4.11%

Tax Equivalent Yield(b)

  7.51%

Current Monthly Distribution per Common Share(c)

  $0.0530

Current Annualized Distribution per Common Share(c)

  $0.6360

Leverage as of January 31, 2021(d)

  37%

 

  (a) 

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 45.3%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change.

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/21      07/31/20      Change      High      Low  

Market Price

  $ 15.48      $ 14.34        7.95    $ 15.64      $ 14.22  

Net Asset Value

    15.07        14.86        1.41        15.07        14.44  

Market Price and Net Asset Value History for the Past Five Years

 

 

LOGO

 

 

F U N D  S U M M A R Y

  7


Fund Summary  as of January 31, 2021 (continued)    BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Performance

Returns for the six months ended January 31, 2021 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MZA(a)(b)

    10.30      3.62

Lipper Other States Municipal Debt Funds(c)

    7.28        3.26  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Fund’s use of leverage.

 
  (b)

The Fund moved from a discount to NAV to a premium during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c)

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds delivered positive returns in the six-month period. Although U.S. Treasury yields moved higher (as prices fell), the tax-exempt market posted a gain due to a decline in yield spreads. Investors grew increasingly optimistic about the economic outlook for 2021, particularly after the approval of a vaccine for COVID-19 in early November 2020. Inflows into the market were consistent and traditional tax-exempt supply trended lower, creating a positive supply-and-demand dynamic that aided performance.

Arizona municipal bonds performed in line with the national market. Despite headwinds from the coronavirus pandemic, year-over-year state revenue growth was stronger than the national average.

The Fund’s positions in sectors that were most affected by COVID-19 in early 2020—including education, transportation and health care—contributed strongly to performance as yield spreads narrowed considerably in anticipation of a recovery. The Fund’s holdings in lower-rated securities also aided performance amid investors’ ongoing search for yield.

The Fund’s use of leverage, which augmented income and amplified the effect of rising prices, was a further contributor.

Reinvestment risk remained a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared with bonds that were issued when yields were higher.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

8   2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Fund Summary  as of January 31, 2021 (continued)    BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Overview of the Fund’s Total Investments

 

SECTOR ALLOCATION

 

 

Sector(a)(b)

 

 

 

01/31/21

 

   

 

07/31/20

 

 

Education

    30     29

Utilities

    24       29  

Health

    18       14  

Transportation

    13       2  

Corporate

    7       10  

County/City/Special District/School District

    5       13  

State

    3       3  

Tobacco

    (c)      (c) 

 

CREDIT QUALITY ALLOCATION

 

 

Credit Rating(a)(e)

 

 

 

01/31/21

 

   

 

07/31/20

 

 

AA/Aa

    56     56

A

    26       26  

BBB/Baa

    4       4  

BB/Ba

    8       8  

CC

          1  

C

    1        

N/R

    5       5  
 

 

CALL/MATURITY SCHEDULE

 

 

Calendar Year Ended December 31,(a)(d)

 

 

 

Percentage

 

 

2021

    6

2022

    8  

2023

    7  

2024

    7  

2025

    13  

    

 

 

(a) 

Excludes short-term securities.

(b)

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.

(c)

Represents less than 1% of the Fund’s long-term investments.

(d)

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(e)

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

 

F U N D  S U M M A R Y

  9


Fund Summary  as of January 31, 2021    BlackRock MuniYield California Fund, Inc. (MYC)

 

Investment Objective

BlackRock MuniYield California Fund, Inc.’s (MYC) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal and California income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its total assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information

 

Symbol on New York Stock Exchange

  MYC

Initial Offering Date.

  February 28, 1992

Yield on Closing Market Price as of January 31, 2021 ($14.78)(a)

  3.49%

Tax Equivalent Yield(b)

  7.60%

Current Monthly Distribution per Common Share(c)

  $0.0430

Current Annualized Distribution per Common Share(c)

  $0.5160

Leverage as of January 31, 2021(d)

  37%

 

  (a)

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 54.1%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change.

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/21      07/31/20      Change      High      Low  

Market Price

  $ 14.78      $ 14.46        2.21    $ 14.96      $ 13.76  

Net Asset Value

    16.57        16.24        2.03        16.58        15.65  

Market Price and Net Asset Value History for the Past Five Years

 

 

LOGO

 

 

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2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Fund Summary  as of January 31, 2021 (continued)    BlackRock MuniYield California Fund, Inc. (MYC)

 

Performance

Returns for the six months ended January 31, 2021 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYC(a)(b)

    4.07      3.88

Lipper California Municipal Debt Funds(c)

    3.82        3.45  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Fund’s use of leverage.

 
  (b) 

The Fund’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds delivered positive returns in the six-month period. Although U.S. Treasury yields moved higher (as prices fell), the tax-exempt market posted a gain due to a decline in yield spreads. Investors grew increasingly optimistic about the economic outlook for 2021, particularly after the approval of a vaccine for COVID-19 in early November 2020. Inflows into the market were consistent and traditional tax-exempt supply trended lower, creating a positive supply-and-demand dynamic that aided performance.

Despite the challenges to state and local budgets from COVID-19, California’s credit quality held up well across most sectors. The potential for higher federal tax rates in the future, together with investors’ ongoing demand for income, created a favorable technical backdrop for tax-exempt munis in high-tax states such as California.

The Fund’s positions in long-duration securities provided the best returns as yields declined and the yield curve flattened. (Duration is a measure of interest rate sensitivity.) At the sector level, positions in transportation, tax-backed local, school district, utility and education issues made the largest contributions.

The use of leverage, which added to the Fund’s income and amplified the effect of rising prices, was a further positive. The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that long-term U.S. Treasury yields rose, as prices fell, this strategy contributed to performance.

On the negative side, the Fund’s higher-quality bias represented an opportunity cost at a time of outperformance for lower-quality issues.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

F U N D  S U M M A R Y

  11


Fund Summary  as of January 31, 2021 (continued)    BlackRock MuniYield California Fund, Inc. (MYC)

 

Overview of the Fund’s Total Investments

 

SECTOR ALLOCATION

 

 

Sector(a)(b)

 

 

 

01/31/21

 

   

 

07/31/20

 

 

County/City/Special District/School District

    26     26

Education

    21       19  

Transportation

    17       17  

State

    15       18  

Utilities

    10       10  

Health

    6       6  

Tobacco

    3       3  

Housing

    2       1  

Corporate

    (c)       

CALL/MATURITY SCHEDULE

 

 

Calendar Year Ended December 31,(a)(d)

 

 

 

Percentage

 

 

2021

    3

2022

    3  

2023

    2  

2024

    10  

2025

    15  

CREDIT QUALITY ALLOCATION

 

 

Credit Rating(a)(e)

 

 

 

01/31/21

 

   

 

07/31/20

 

 

AAA/Aaa

    4     4

AA/Aa

    67       70  

A

    15       15  

BBB/Baa

    2       1  

BB/Ba

    1       (c) 

B

    (c)      1  

CC

          1  

C

    (c)       

N/R(f)

    11       8  
 

 

  (a) 

Excludes short-term securities.

 
  (b) 

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.

 
  (c) 

Rounds to less than 1% of total investments.

 
  (d) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 
  (e) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (f) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2021 and July 31, 2020, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.

 

 

 

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Fund Summary  as of January 31, 2021    BlackRock MuniYield Investment Fund (MYF)

 

Investment Objective

BlackRock MuniYield Investment Fund’s (MYF) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund primarily invests in municipal bonds that are investment grade quality, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its total assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

On June 16, 2020, the Board of Directors of MYF and the Board of Directors of BlackRock MuniYield Quality Fund, Inc. (MQY) each approved the reorganization of MYF into MQY. The reorganization was approved by each Fund’s shareholders and is expected to occur during the second quarter of 2021, subject to the satisfaction of customary closing conditions.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information

 

Symbol on New York Stock Exchange

  MYF

Initial Offering Date.

  February 28, 1992

Yield on Closing Market Price as of January 31, 2021 ($14.12)(a)

  4.76%

Tax Equivalent Yield(b)

  8.04%

Current Monthly Distribution per Common Share(c)

  $0.0560

Current Annualized Distribution per Common Share(c)

  $0.6720

Leverage as of January 31, 2021(d)

  35%

 

  (a) 

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/21      07/31/20      Change      High      Low  

Market Price

  $ 14.12      $ 13.79        2.39    $ 14.47      $ 13.00  

Net Asset Value

    14.91        14.53        2.62        14.91        14.12  

Market Price and Net Asset Value History for the Past Five Years

 

 

LOGO

 

 

F U N D  S U M M A R Y

  13


Fund Summary  as of January 31, 2021 (continued)    BlackRock MuniYield Investment Fund (MYF)

 

Performance

Returns for the six months ended January 31, 2021 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYF(a)(b)

    4.92      5.15

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    6.44        5.39  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Fund’s use of leverage.

 
  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds delivered positive returns in the six-month period. Although U.S. Treasury yields moved higher (as prices fell), the tax-exempt market posted a gain due to a decline in yield spreads. Investors grew increasingly optimistic about the economic outlook for 2021, particularly after the approval of a vaccine for COVID-19 in early November 2020. Inflows into the market were consistent and traditional tax-exempt supply trended lower, creating a positive supply-and-demand dynamic that aided performance.

Positions in high yield bonds, which significantly outpaced investment-grade issues, were the largest contributors to performance. Holdings in Puerto Rico, corporate-backed securities and tobacco issues were notable outperformers in the high yield space. The health care and transportation sectors were also leading contributors to returns. Positions in longer-term bonds, which offered higher yields and experienced stronger price appreciation than the overall market, further helped performance.

The Fund’s use of leverage, which augmented income and amplified the effect of rising prices, was an additional contributor. The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields rose, as prices fell, this strategy contributed to results.

Detractors from performance were the Fund’s positions in very short-term, pre-refunded bonds, which failed to keep pace with the broader market.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

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Fund Summary  as of January 31, 2021 (continued)    BlackRock MuniYield Investment Fund (MYF)

 

Overview of the Fund’s Total Investments

 

SECTOR ALLOCATION

 

 

Sector(a)(b)

 

 

 

01/31/21

 

   

 

07/31/20

 

 

Transportation

    27     27

Health

    15       15  

County/City/Special District/School District

    13       17  

Housing

    12       11  

State

    11       8  

Utilities

    6       10  

Education

    6       5  

Tobacco

    6       5  

Corporate

    4       2  

Industrial Conglomerates

    (c)      (c) 

CREDIT QUALITY ALLOCATION

 

 

Credit Rating(a)(e)

 

 

 

01/31/21

 

   

 

07/31/20

 

 

AAA/Aaa

    4     4

AA/Aa

    40       37  

A

    25       24  

BBB/Baa

    13       11  

BB/Ba

    5       5  

B

    2       2  

C

    (c)       

N/R(f)

    11       17  
 

 

CALL/MATURITY SCHEDULE

 

 

Calendar Year Ended December 31,(a)(d)

 

 

 

Percentage

 

 

2021

    9

2022

    3  

2023

    12  

2024

    3  

2025

    3  
 

 

  (a) 

Excludes short-term securities.

 
  (b) 

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.

 
  (c) 

Represents less than 1% of the Fund’s total investments.

 
  (d) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 
  (e) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (f) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2021 and July 31, 2020, the market value of unrated securities deemed by the investment adviser to be investment grade represents 3% and 3%, respectively, of the Fund’s total investments.

 

 

 

F U N D  S U M M A R Y

  15


Fund Summary  as of January 31, 2021    BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Investment Objective

BlackRock MuniYield New Jersey Fund, Inc.’s (MYJ) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal income taxes and New Jersey personal income tax as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New Jersey personal income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its total assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information

 

Symbol on New York Stock Exchange

  MYJ

Initial Offering Date.

  May 1, 1992

Yield on Closing Market Price as of January 31, 2021 ($14.51)(a)

  5.17%

Tax Equivalent Yield(b)

  10.67%

Current Monthly Distribution per Common Share(c)

  $0.0625

Current Annualized Distribution per Common Share(c)

  $0.7500

Leverage as of January 31, 2021(d)

  38%

 

  (a) 

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 51.55%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

  (c) 

The distribution rate is not constant and is subject to change.

  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

Market Price and Net Asset Value Per Share Summary

 

     01/31/21      07/31/20      Change      High      Low  

Market Price

  $ 14.51      $ 14.28        1.61    $ 14.65      $ 13.29  

Net Asset Value

    16.33        15.89        2.77        16.34        15.57  

Market Price and Net Asset Value History for the Past Five Years

 

 

LOGO

 

 

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2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Fund Summary  as of January 31, 2021 (continued)    BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Performance

Returns for the six months ended January 31, 2021 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYJ(a)(b)

    4.29      5.49

Lipper New Jersey Municipal Debt Funds(c)

    5.39        4.81  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Fund’s use of leverage.

  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

The following discussion relates to the Fund’s absolute performance based on NAV:

Municipal bonds delivered positive returns in the six-month period. Although U.S. Treasury yields moved higher (as prices fell), the tax-exempt market posted a gain due to a decline in yield spreads. Investors grew increasingly optimistic about the economic outlook for 2021, particularly after the approval of a vaccine for COVID-19 in early November 2020. Inflows into the market were consistent and traditional tax-exempt supply trended lower, creating a positive supply-and-demand dynamic that aided performance.

New Jersey tax-backed bonds outperformed the national market. Credit spreads tightened during the period due to elevated investor demand for higher yielding investment-grade bonds, coupled with tax revenues that were more resilient than expected.

High yield municipal bonds posted the strongest gains for the period, led by more liquid tobacco and Puerto Rico bonds. The state tax-backed sector—which benefited from the strength in both the state of New Jersey and Puerto Rico bonds—was the primary contributor. The transportation also contributed, but to a lesser extent. Positions in A and BBB rated bonds were the largest contributors on a ratings basis. At a time in which longer-maturity bonds outperformed short term issues, the Fund’s holdings in bonds with maturities of 20 years and above helped performance.

The Fund’s use of leverage, which augmented income and amplified the effect of rising prices, was a further contributor. The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields rose, as prices fell, this strategy contributed to results.

Reinvestment risk remained a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to bonds that were issued when yields were higher.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

F U N D  S U M M A R Y

  17


Fund Summary  as of January 31, 2021  (continued)    BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Overview of the Fund’s Total Investments

 

SECTOR ALLOCATION

 

 

Sector(a)(b)

 

 

 

01/31/21

 

   

 

07/31/20

 

 

State

    27     9

Transportation

    24       35  

Education

    16       17  

County/City/Special District/School District

    15       18  

Health

    6       6  

Tobacco

    5       4  

Utilities

    3       4  

Corporate

    2       5  

Housing

    2       2  

Hotels, Restaurants & Leisure

    (c)       

CALL/MATURITY SCHEDULE

 

 

Calendar Year Ended December 31,(a)(d)

 

 

 

Percentage

 

 

2021

    8

2022

    9  

2023

    5  

2024

    13  

2025

    2  

CREDIT QUALITY ALLOCATION

 

 

Credit Rating(a)(e)

 

 

 

01/31/21

 

   

 

07/31/20

 

 

AAA/Aaa

    6     6

AA/Aa

    31       30  

A

    19       18  

BBB/Baa

    31       31  

BB/Ba

    6       8  

B

    (c)       

C

    1        

N/R(f)

    6       7  
 

 

  (a)

Excludes short-term securities.

 
  (b)

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.

 
  (c)

Represents less than 1% of the Fund’s long-term investments.

 
  (d)

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 
  (e)

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
  (f)

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2021 and July 31, 2020, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 1%, respectively, of the Fund’s total investments.

 

 

 

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2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited)

January 31, 2021

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
     Value  

Municipal Bonds

    
Arizona — 136.8%             
Corporate — 10.6%             

Industrial Development Authority of the County of Pima, Refunding RB, Series A, 4.00%, 09/01/29

  $ 1,000      $ 1,074,270  

Salt Verde Financial Corp., RB

    

5.50%, 12/01/29

    2,000        2,671,500  

5.00%, 12/01/37

    2,500        3,633,525  
    

 

 

 
       7,379,295  
County/City/Special District/School District — 8.0%             

City of Phoenix Civic Improvement Corp., RB,
Series B, (BHAC), 5.50%, 07/01/41

    100        157,509  

Kyrene Elementary School District No.28, GO

    

Series B, 5.50%, 07/01/29

    480        540,648  

Series B, 5.50%, 07/01/30

    400        450,540  

Maricopa County Unified School District No.11-Peoria, GO, (AGM), 5.00%, 07/01/35

    1,250        1,468,375  

Town of Queen Creek Arizona Excise Tax Revenue, RB

    

4.00%, 08/01/50

    1,700        2,028,440  

Series A, 5.00%, 08/01/42

    750        945,082  
    

 

 

 
       5,590,594  
Education — 45.6%             

Arizona Board of Regents, RB,
Series A, 4.00%,07/01/42

    1,000        1,217,810  

Arizona Board of Regents, Refunding COP,
Series C, 5.00%, 06/01/30

    2,595        2,756,201  

Arizona Industrial Development Authority, RB
7.10%, 01/01/55(a)

    250        250,920  

Series A, (BAM), 5.00%, 06/01/49

    2,500        2,949,850  

Series A, 5.00%, 07/15/49(a)

    1,000        1,098,010  

Series A, 5.00%, 12/15/49(a)

    250        269,360  

Arizona Industrial Development Authority, Refunding RB
(SD CRED PROG), 5.00%, 07/01/37

    750        901,388  

Series A, 5.13%, 07/01/37(a)

    500        561,965  

Series A, 5.50%, 07/01/52(a)

    600        645,456  

Series G, 5.00%, 07/01/47(a)

    2,360        2,609,594  

Florence Town, Inc. Industrial Development Authority, RB,
6.00%, 07/01/43

    500        529,005  

Industrial Development Authority of the City of Phoenix, RB

    

6.30%, 07/01/21(b)

    500        512,605  

6.63%, 07/01/23(b)

    500        576,705  

Series A, 5.00%, 07/01/44

    2,000        2,186,500  

Series A, 6.75%, 07/01/44(a)

    440        482,970  

Series A, 5.00%, 07/01/46(a)

    500        530,460  

Industrial Development Authority of the City of Phoenix, Refunding RB

    

5.00%, 07/01/45(a)

    500        525,870  

5.00%, 07/01/46

    500        553,635  

Industrial Development Authority of the County of Pima, Refunding RB, 5.00%, 06/15/52(a)

    530        547,723  

Maricopa County Industrial Development Authority, RB

    

5.00%, 07/01/47

    1,000        1,116,780  

4.00%, 07/01/50

    1,500        1,725,090  

Maricopa County Industrial Development Authority,
Refunding RB(a)

    

5.00%, 07/01/47

    1,000        1,076,320  

5.00%, 07/01/54

    250        269,140  
Security   Par
(000)
     Value  
Education (continued)             

McAllister Academic Village LLC, Refunding RB,
5.00%, 07/01/39

  $ 500      $ 597,050  

Northern Arizona University, RB,
5.00%, 08/01/23(b)

    3,000        3,354,600  

Student & Academic Services LLC, RB, (BAM),
5.00%, 06/01/39

    1,400        1,582,868  

University of Arizona, Refunding RB,
5.00%, 06/01/39

    2,050        2,475,355  
    

 

 

 
       31,903,230  
Health — 27.4%             

Arizona Health Facilities Authority, RB, Series B-2, (AGM), 5.00%, 03/01/21(b)

    500        501,930  

Arizona Health Facilities Authority, Refunding RB

    

Series A, 5.00%, 02/01/42

    1,000        1,045,900  

Series A, 5.00%, 12/01/42

    2,785        3,217,928  

Arizona Industrial Development Authority, RB,
Series A, 4.00%, 02/01/50

    2,635        3,078,286  

Industrial Development Authority of the County of Yavapai, Refunding RB

    

5.25%, 10/01/26

    1,000        1,033,410  

4.00%, 08/01/43

    1,650        1,916,937  

Maricopa County Industrial Development Authority, RB,
Series A, 4.00%, 01/01/41

    4,000        4,621,200  

Maricopa County Industrial Development Authority,Refunding RB

    

Series A, 5.00%, 01/01/38

    500        613,265  

Series A, 4.13%, 09/01/42

    750        861,435  

Series A, 5.00%, 09/01/42

    1,000        1,233,230  

University Medical Center Corp., Refunding RB,
6.00%, 07/01/21(b)

    1,000        1,024,290  
    

 

 

 
       19,147,811  
Transportation — 13.4%             

City of Phoenix Civic Improvement Corp., ARB,
Series A, AMT, 5.00%, 07/01/42

    3,000        3,646,110  

City of Phoenix Civic Improvement Corp., Refunding RB AMT,
Senior Lien, 5.00%, 07/01/32

    700        774,501  

Series D, Junior Lien, 4.00%, 07/01/40

    1,000        1,148,010  

Phoenix-Mesa Gateway Airport Authority, ARB, AMT,
5.00%, 07/01/38

    3,600        3,809,304  
    

 

 

 
       9,377,925  
Utilities — 31.8%             

City of Buckeye Arizona, RB, (ST INTERCEPT),
5.00%, 07/01/43

    4,000        4,682,880  

City of Goodyear Arizona Water & Sewer Revenue, RB,
2nd Series, Subordinate, (AGM), 4.00%, 07/01/45

    250        291,335  

City of Lake Havasu City Arizona Wastewater System Revenue, RB, Series B, (AGM), 5.00%, 07/01/40

    3,500        4,089,540  

City of Mesa Arizona Utility System Revenue, RB,
5.00%, 07/01/42

    3,000        3,794,610  

City of Phoenix Civic Improvement Corp., RB,
Series A, Junior Lien, 4.00%, 07/01/39

    1,300        1,551,108  

Pinal County Electric District No.3, Refunding RB,
Series A, 5.25%, 07/01/21(b)

    2,500        2,552,175  

Pinal County Industrial Development Authority, RB, AMT, 6.25%, 06/01/26

    285        322,173  

 

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

  19


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Utilities (continued)            

Salt River Project Agricultural Improvement & Power District, Refunding RB
5.00%, 01/01/38

  $ 2,000     $ 2,539,940  

Series A, 5.00%, 12/01/41

    2,000       2,388,700  
   

 

 

 
      22,212,461  
   

 

 

 
Total Municipal Bonds in Arizona         95,611,316  
Puerto Rico — 6.1%            
State — 4.4%            

Puerto Rico Sales Tax Financing Corp. Sales Tax

   

Revenue, RB

   

Series A-1, Restructured, 4.75%, 07/01/53

    384       429,769  

Series A-1, Restructured, 5.00%, 07/01/58

    1,495       1,697,812  

Series A-2, Restructured, 4.33%, 07/01/40

    196       216,652  

Series A-2, Restructured, 4.78%, 07/01/58

    357       400,076  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB,
Series A-1, Restructured, 0.00%, 07/01/46(c)

    1,156       365,585  
   

 

 

 
      3,109,894  
Tobacco — 0.7%            

Children’s Trust Fund, Refunding RB, 5.63%, 05/15/43

    460       465,589  
   

 

 

 
Utilities — 1.0%            

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB

   

Series A, Senior Lien, 5.00%, 07/01/33

    525       553,313  

Series A, Senior Lien, 5.13%, 07/01/37

    150       158,705  
   

 

 

 
      712,018  
   

 

 

 
Total Municipal Bonds in Puerto Rico         4,287,501  
   

 

 

 
Total Municipal Bonds — 142.9%            

(Cost: $90,117,621)

      99,898,817  
   

 

 

 
Municipal Bonds Transferred to Tender Option Bond Trusts(d)  
Arizona — 11.5%            
Transportation — 7.1%            

City of Phoenix Civic Improvement Corp., ARB, AMT,
Senior Lien, 5.00%, 07/01/43

    4,000       4,942,480  
   

 

 

 
Security  

Par

(000)

    Value  
Utilities — 4.4%            

City of Mesa Arizona Utility System Revenue, RB,
5.00%, 07/01/35

  $ 3,000     $ 3,059,910  
   

 

 

 
Total Municipal Bonds in Arizona         8,002,390  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 11.5%

   

(Cost: $7,301,234)

      8,002,390  
   

 

 

 
Total Long-Term Investments — 154.4%            

(Cost: $97,418,855)

      107,901,207  
   

 

 

 

Shares

        
Short-Term Securities            

Money Market Funds — 3.4%

   

BlackRock Liquidity Funds, MuniCash,
Institutional Class, 0.01%(e)(f)

    2,395,776       2,396,255  
   

 

 

 
Total Short-Term Securities — 3.4%            

(Cost: $2,396,017)

      2,396,255  
   

 

 

 
Total Investments — 157.8%            

(Cost: $99,814,872)

      110,297,462  
Other Assets Less Liabilities — 0.3%         233,428  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (5.0)%

      (3,500,340

VRDP Shares at Liquidation Value, Net of
Deferred Offering Costs — (53.1)%

      (37,131,157
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

    $ 69,899,393  
   

 

 

 

 

(a)

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.

(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)

Zero-coupon bond.

(d)

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. See Note 4 of the Notes to Financial Statements for details.

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six-months ended January 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
07/31/20
     Purchases
at Cost
     Proceeds
from Sales
     Net
Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
01/31/21
    

Shares

Held at
01/31/21

     Income      Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

  $  2,704,950      $  —      $  (308,653)(a)      $  457      $  (499)      $  2,396,255        2,395,776      $  68      $  —  
          

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

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.

 

 

20  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Municipal Bonds

   $        $ 99,898,817        $             —        $ 99,898,817  

Municipal Bonds Transferred to Tender Option Bond Trusts.

              8,002,390                   8,002,390  

Short-Term Securities

                 

Money Market Funds

     2,396,255                            2,396,255  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,396,255        $ 107,901,207        $        $ 110,297,462  
  

 

 

      

 

 

      

 

 

      

 

 

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement 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

   $             —        $ (3,500,000      $             —        $ (3,500,000

VRDP Shares at Liquidation Value

              (37,300,000                 (37,300,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (40,800,000      $        $ (40,800,000
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

S C H E D U L E  O F  I N V E S T M E N T S

  21


Schedule of Investments  (unaudited)

January 31, 2021

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds

   

California — 80.5%

   
Corporate — 0.6%            

California Municipal Finance Authority, RB, Series A, AMT, 4.00%, 07/15/29

  $ 1,835     $ 2,058,411  
   

 

 

 
County/City/Special District/School District — 22.2%  

Beverly Hills Unified School District California, GO, Series A, 3.00%, 08/01/41

    2,000       2,174,780  

California Statewide Communities Development Authority, SAB

   

Series A, 5.00%, 09/02/39

    190       219,355  

Series A, 5.00%, 09/02/44

    110       126,024  

Series A, 5.00%, 09/02/48

    110       125,438  

California Statewide Communities Development Authority, SAB, S/F Housing, Series C, 5.00%, 09/02/39

    415       479,117  

City & County of San Francisco California Refunding COP, Series A, 4.00%, 04/01/44

    11,300       12,835,896  

City of Los Angeles California, COP, (AMBAC), 6.20%, 11/01/31

    1,900       1,909,139  

City of Roseville California, ST, 4.00%, 09/01/50

    240       255,562  

City of San Jose California Hotel Tax Revenue, RB
6.50%, 05/01/36

    1,520       1,541,371  

6.50%, 05/01/42

    1,860       1,885,947  

Fremont Unified School District/Alameda County, GO, Series D, 2.00%, 08/01/41

    4,000       3,979,960  

Los Angeles County Metropolitan Transportation Authority, Refunding RB, Series A, 5.00%, 07/01/42

    2,000       2,493,640  

Mount San Antonio Community College District, Refunding GO, Series A, 5.00%, 08/01/44

    8,000       10,367,680  

Orange County Community Facilities District, ST
4.00%, 08/15/40

    180       199,660  

4.00%, 08/15/50

    165       179,678  

Riverside County Public Financing Authority, RB, 5.25%, 11/01/45

    5,000       5,984,800  

San Francisco Bay Area Rapid Transit District, GO, Series A, 4.00%, 08/01/42

    7,875       9,213,750  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB, Series A, AMT, 5.00%, 01/01/40

    270       327,399  

Santa Clara County Financing Authority RB, Series A, 4.00%, 05/01/45

    15,000       17,840,100  

West Contra Costa Unified School District, GO, Series A, 5.50%, 08/01/39

    2,500       2,820,900  

West Valley-Mission Community College District, GO, Series A, 4.00%, 08/01/44

    3,420       4,076,777  
   

 

 

 
      79,036,973  
Education — 7.4%            

California Municipal Finance Authority, RB(a)

   

Series A, 5.00%, 10/01/39

    150       158,574  

Series A, 5.00%, 10/01/49

    255       266,832  

Series A, 5.00%, 10/01/57

    505       526,008  

California Municipal Finance Authority, Refunding RB
5.00%, 08/01/39

    290       308,450  

5.00%, 08/01/48

    940       1,001,276  

California Public Finance Authority, RB, Series A, 5.00%, 07/01/54(a)

    195       198,327  

California School Finance Authority, RB
6.65%, 07/01/33

    595       647,848  

6.90%, 07/01/43

    1,330       1,442,013  

Series A, 6.00%, 07/01/33

    1,500       1,684,440  

Series A, 5.00%, 06/01/39(a)

    740       801,494  
Security   Par
(000)
    Value  
Education (continued)            

California School Finance Authority, RB (continued)

   

Series A, 6.30%, 07/01/43

  $ 3,000     $ 3,383,610  

Series A, 5.00%, 06/01/58(a)

    1,465       1,584,060  

California State University, RB, Series C, 3.00%, 11/01/39

    2,200       2,487,540  

California Statewide Communities Development Authority, RB, 5.00%, 06/01/51(a)

    165       181,182  

Hastings Campus Housing Finance Authority, RB
Series A, 5.00%, 07/01/45

    410       474,103  

Series A, 5.00%, 07/01/61

    2,465       2,814,488  

University of California, RB, 4.00%, 05/15/47

    4,750       5,732,680  

University of California, Refunding RB, Series BE, 4.00%, 05/15/40

    2,045       2,518,377  
   

 

 

 
      26,211,302  
Health — 5.3%            

California Health Facilities Financing Authority, RB
Series A, 5.00%, 08/15/23(b)

    2,005       2,252,397  

Series A, 5.25%, 11/01/41

    9,700       10,050,364  

California Health Facilities Financing Authority, Refunding RB
Series A, 4.00%, 04/01/49

    3,000       3,480,510  

Series B, 5.00%, 11/15/46

    2,370       2,882,489  

California Municipal Finance Authority, Refunding RB(a)
Series A, 5.00%, 11/01/39

    135       155,948  

Series A, 5.00%, 11/01/49

    150       168,807  
   

 

 

 
      18,990,515  
Housing — 2.3%            

California Community Housing Agency, RB, Series A, 4.00%, 02/01/56(a)(c)

    870       948,065  

California Community Housing Agency, RB, M/F Housing, Series A, 5.00%, 04/01/49(a)

    1,670       1,912,651  

California Housing Finance, RB, M/F Housing, Series A, 4.25%, 01/15/35

    (d)       581  

CSCDA Community Improvement Authority, RB, M/F Housing(a)
4.00%, 08/01/56(c)

    1,000       1,105,170  

Series A, 5.00%, 07/01/51

    700       805,266  

Santa Clara County Housing Authority, RB, M/F Housing, Series A, AMT, 6.00%, 08/01/41

    3,500       3,512,005  
   

 

 

 
      8,283,738  
State — 11.9%            

California Statewide Communities Development Authority, SAB, S/F Housing

   

5.00%, 09/02/40

    205       239,120  

4.00%, 09/02/50

    165       175,121  

5.00%, 09/02/50

    165       188,615  

State of California, Refunding GO
5.00%, 09/01/35

    10,115       12,482,011  

4.00%, 03/01/36

    20,000       24,778,400  

5.25%, 10/01/39

    3,500       4,295,550  
   

 

 

 
      42,158,817  
Tobacco — 4.7%            

California County Tobacco Securitization Agency, Refunding RB

   

4.00%, 06/01/49

    165       192,981  

5.00%, 06/01/50

    250       294,195  

Series A, 4.00%, 06/01/49

    240       281,871  

California County Tobacco Securitization Agency, Refunding RB, CAB(e) 0.00%, 06/01/55

    1,660       401,089  
 

 

 

22  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Tobacco (continued)            

California County Tobacco Securitization Agency, Refunding RB, CAB(e) (continued)

   

Series B-2, Subordinate, 0.00%, 06/01/55

  $ 2,485     $ 479,829  

Golden State Tobacco Securitization Corp., Refunding RB

   

Series A-1, 5.00%, 06/01/47

    325       338,052  

Series A-2, 5.00%, 06/01/47

    11,495       11,956,639  

Tobacco Securitization Authority of Southern California, Refunding RB, 5.00%, 06/01/48

    2,190       2,685,969  
   

 

 

 
      16,630,625  
Transportation — 18.3%            

City of Long Beach California Harbor Revenue, ARB, Series A, AMT, 5.00%, 05/15/40

    4,915       5,917,611  

City of Los Angeles Department of Airports, ARB

   

Series A, AMT, 5.25%, 05/15/38

    1,735       2,190,802  

Series B, AMT, 5.00%, 05/15/36

    2,865       3,440,321  

Series C, AMT, Subordinate, 5.00%, 05/15/44

    5,955       7,253,666  

City of Los Angeles Department of Airports, Refunding ARB, AMT, 5.00%, 05/15/43

    2,175       2,718,358  

County of Sacramento California Airport System Revenue, Refunding RB

   

Series A, 5.00%, 07/01/41

    8,290       9,983,979  

Series C, AMT, 5.00%, 07/01/37

    3,000       3,735,060  

Los Angeles County Metropolitan Transportation Authority, Refunding RB, Series A, 5.00%, 07/01/41

    1,300       1,625,598  

Norman Y Mineta San Jose International Airport SJC, Refunding RB

   

Series A-1, AMT, (AGM), 5.50%, 03/01/30

    1,000       1,003,800  

Series A-1, AMT, 5.75%, 03/01/34

    2,000       2,008,320  

Series A-1, AMT, (AGM), 5.75%, 03/01/34

    1,000       1,003,990  

Series A-1, AMT, 6.25%, 03/01/34

    1,400       1,406,384  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB

   

Series A, AMT, 5.25%, 05/01/33

    1,440       1,593,806  

Series A, AMT, 5.00%, 05/01/42

    5,050       6,055,152  

Series A, AMT, 5.00%, 05/01/44

    2,500       3,094,275  

Series A, AMT, 5.00%, 05/01/49

    5,050       6,217,459  

Series D, AMT, 5.25%, 05/01/48

    2,250       2,773,935  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding RB
Series 2020, AMT, 4.00%, 05/01/39

    2,000       2,363,360  

Series A, AMT, 5.00%, 05/01/27

    500       529,355  
   

 

 

 
      64,915,231  
Utilities — 7.8%            

City of Richmond California Wastewater Revenue, Refunding RB, Series A, 5.00%, 08/01/42

    5,185       6,459,732  

City of San Francisco California Public Utilities Commission Water Revenue, Refunding RB, Series A, 5.00%, 11/01/50

    2,000       2,644,240  

Eastern Municipal Water District, Refunding RB, Series A, 5.00%, 07/01/42

    3,000       3,680,190  

Los Angeles Department of Water & Power Power System Revenue, RB
Series A, 5.00%, 07/01/42

    3,440       4,261,885  

Series A, 5.00%, 07/01/45

    100       127,698  
Security   Par
(000)
    Value  
Utilities (continued)            

Los Angeles Department of Water, Refunding RB, Series B, 5.00%, 07/01/43

  $ 5,175     $ 6,616,807  

Sacramento Municipal Utility District, Refunding RB, Series H, 4.00%, 08/15/45

    3,200       3,883,232  
   

 

 

 
      27,673,784  
   

 

 

 

Total Municipal Bonds in California.

      285,959,396  
Puerto Rico — 5.2%            
State — 4.5%            

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB
Series A-1, Restructured, 4.75%, 07/01/53

    1,689       1,890,312  

Series A-1, Restructured, 5.00%, 07/01/58

    6,675       7,580,530  

Series A-2, Restructured, 4.33%, 07/01/40

    1,696       1,874,708  

Series A-2, Restructured, 4.78%, 07/01/58

    1,727       1,935,380  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(e)

    8,295       2,623,294  
   

 

 

 
      15,904,224  
Tobacco — 0.0%            

Children’s Trust Fund, Refunding RB, 5.50%, 05/15/39

    95       97,486  
   

 

 

 
Utilities — 0.7%            

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Series A, Senior Lien, 5.00%, 07/01/33

    2,185       2,302,837  
   

 

 

 

Total Municipal Bonds in Puerto Rico

      18,304,547  
   

 

 

 

Total Municipal Bonds — 85.7%
(Cost: $277,699,815)

 

    304,263,943  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(f)

 

California — 71.5%  
County/City/Special District/School District — 19.3%  

Los Angeles County Public Works Financing Authority, Refunding RB
Series A, 5.00%, 12/01/39

    17,850       20,920,735  

Series A, 5.00%, 12/01/44

    14,095       16,289,307  

Palomar Community College District, GO, Series C, 5.00%, 08/01/44(b)

    15,140       18,381,020  

Santa Monica Community College District, GO, Series A, 5.00%, 08/01/43

    10,000       12,938,200  
   

 

 

 
      68,529,262  
Education — 25.2%            

California State University, Refunding RB
Series A, 5.00%, 11/01/41

    9,775       11,857,175  

Series A, 5.00%, 11/01/42(g)

    13,430       16,687,715  

Series A, 5.00%, 11/01/43

    5,001       6,034,592  

University of California, RB, Series AM, 5.25%, 05/15/44

    11,950       13,841,446  

University of California, Refunding RB
Series AZ, 5.00%, 05/15/43(g)

    12,000       15,237,240  

Series I, 5.00%, 05/15/40

    21,875       25,854,491  
   

 

 

 
      89,512,659  
Health — 3.8%            

California Health Facilities Financing Authority, RB, Series A, 5.00%, 11/15/41(b)

    11,000       13,493,590  
   

 

 

 
 

 

 

S C H E D U L E  O F  I N V E ST M E N T S

  23


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
State — 7.4%            

State of California, GO, 4.00%, 03/01/46(g)

  $ 10,000     $ 12,054,800  

State of California, Refunding GO, 5.00%, 08/01/37

    10,975       14,141,833  
   

 

 

 
      26,196,633  
Transportation — 9.0%            

City of Los Angeles Department of Airports, ARB, AMT, Series A, 5.00%, 05/15/45

    10,045       11,683,035  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB, AMT, Series E, 5.00%, 05/01/45(g)

    16,250       20,098,650  
   

 

 

 
      31,781,685  
Utilities — 6.8%            

Sacramento Municipal Utility District, Refunding RB, Series H, 4.00%, 08/15/45

    20,000       24,270,200  
   

 

 

 

Total Municipal Bonds in California

      253,784,029  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 71.5%
(Cost: $230,673,345)

      253,784,029  
   

 

 

 

Total Investments — 157.2%
(Cost: $508,373,160)

      558,047,972  

Other Assets Less Liabilities — 2.1%

      7,357,608  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (29.5)%

 

    (104,731,690

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (29.8)%

 

    (105,672,458
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 355,001,432  
   

 

 

 
(a) 

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.

(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) 

When-issued security.

(d) 

Amount is less than 500.

(e) 

Zero-coupon bond.

(f) 

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. See Note 4 of the Notes to Financial Statements for details.

(g) 

All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between May 1, 2025 to March 1, 2028, is $27,116,500. See Note 4 of the Notes to Financial Statements for details.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six-months ended January 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
07/31/20
     Purchases
at Cost
     Proceeds
from Sales
     Net
Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
01/31/21
     Shares
Held at
01/31/21
     Income      Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Liquidity Funds California Money Fund, Institutional Class(a)

   $ 3,424,210      $      $ (3,424,230 )(b)     $ 27      $ (7    $             $ 168      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 

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

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount (000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

           

10-Year U.S. Treasury Note

     136        03/22/21      $ 18,636      $ (3,340

Long U.S. Treasury Bond

     51        03/22/21        8,605        40,015  
           

 

 

 
            $ 36,675  
           

 

 

 

 

 

24  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 40,015      $      $ 40,015  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $      $      $ 3,340      $      $ 3,340  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the six months ended January 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $      $      $ 631,815      $      $ 631,815  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $      $      $ 36,675      $      $ 36,675  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — short.

   $ 13,620,453  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Municipal Bonds

   $        $ 304,263,943        $         —        $ 304,263,943  

Municipal Bonds Transferred to Tender Option Bond Trusts

              253,784,029                   253,784,029  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ 558,047,972        $        $ 558,047,972  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Interest Rate Contracts

   $ 40,015        $        $        $ 40,015  

Liabilities

                 

Interest Rate Contracts

     (3,340                          (3,340
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 36,675        $        $        $ 36,675  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

  25


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement 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

   $        $ (104,690,676      $        $ (104,690,676

VRDP Shares at Liquidation Value

              (105,900,000                 (105,900,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (210,590,676      $        $ (210,590,676
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

26  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited)

January 31, 2021

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
     Value  

Municipal Bonds

    
Alabama — 0.3%             

Selma Industrial Development Board, RB, Series A, 5.38%, 12/01/35

  $ 545      $ 567,792  
    

 

 

 
Arizona — 2.6%             

Arizona Industrial Development Authority, Refunding RB, Series A, 5.38%, 07/01/50(a)

    1,645        1,816,903  

City of Phoenix Civic Improvement Corp., ARB, Junior Lien, 3.00%, 07/01/49

    1,500        1,583,490  

Industrial Development Authority of the City of Phoenix, RB, Series A, 5.00%, 07/01/46(a)

    1,070        1,135,184  

Maricopa County Industrial Development Authority, Refunding RB, Series A, 4.13%, 09/01/38

    550        638,220  

Salt Verde Financial Corp., RB, 5.00%, 12/01/32

    155        209,335  
    

 

 

 
       5,383,132  
Arkansas — 0.6%             

Arkansas Development Finance Authority, RB, AMT, 4.50%, 09/01/49(a)

    1,210        1,333,335  
    

 

 

 
California — 9.4%             

ABC Unified School District, GO, Series C, (NPFGC), 0.00%, 08/01/34(b)

    1,215        949,158  

Alvord Unified School District, Refunding GO, CAB, Series B, (AGM), 0.00%, 08/01/41(b)

    1,175        676,095  

California Municipal Finance Authority, Refunding RB, Series A, 5.00%, 02/01/42

    145        168,626  

California State Public Works Board, RB
Series F, 5.25%, 09/01/33

    835        942,298  

Series I, 5.50%, 11/01/31

    1,000        1,142,890  

California Statewide Communities Development Authority, Refunding RB(a)
Series A, 5.00%, 06/01/36

    1,360        1,491,458  

Series A, 5.00%, 06/01/46

    1,680        1,799,498  

Department of Veterans Affairs Veteran’s Farm & Home Purchase Program RB, Series A, 2.45%, 12/01/45

    950        971,992  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-2, 5.00%, 06/01/47

    655        681,305  

Kern Community College District, GO, Series C, 5.50%, 11/01/23(c)

    1,620        1,857,103  

Norman Y Mineta San Jose International Airport SJC, Refunding RB, Series A-1, AMT, 5.50%, 03/01/30

    1,500        1,505,955  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB
Series J, 5.25%, 05/15/23(c)

    2,905        3,244,043  

Series J, 5.25%, 05/15/38

    825        915,280  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB
Series A, AMT, 5.50%, 05/01/28

    1,065        1,188,508  

Series A, AMT, 5.25%, 05/01/33

    830        918,652  

Washington Township Health Care District, GO, Series B, 5.50%, 08/01/40

    625        710,994  
    

 

 

 
       19,163,855  
Colorado — 3.1%             

Centerra Metropolitan District No.1, TA, 5.00%, 12/01/47(a)

    345        358,528  

City & County of Denver Colorado Airport System Revenue, ARB
Series A, AMT, 5.50%, 11/15/28

    1,000        1,133,660  

Series A, AMT, 5.50%, 11/15/30

    330        373,824  
Security   Par
(000)
     Value  
Colorado (continued)             
City & County of Denver Colorado Airport System Revenue,
ARB (continued)
            

Series A, AMT, 5.50%, 11/15/31

  $ 400      $ 452,936  

City & County of Denver Colorado, RB, CAB, Series A-2, 0.00%, 08/01/37(b)

    1,760        1,048,238  

Colorado Health Facilities Authority, Refunding RB
Series A, 3.25%, 08/01/49

    1,610        1,682,192  

Series A, 4.00%, 08/01/49

    1,200        1,354,344  
    

 

 

 
       6,403,722  
Connecticut — 0.3%             

Connecticut Housing Finance Authority, Refunding RB, S/F Housing, Series A-1, 3.80%, 11/15/39

    540        600,701  
    

 

 

 
Delaware — 0.9%             

Delaware State Health Facilities Authority, RB, 5.00%, 06/01/48

    1,605        1,893,306  
    

 

 

 
District of Columbia — 0.3%             

Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Refunding RB, Series B, Subordinate, 4.00%, 10/01/49

    530        602,419  
    

 

 

 
Florida — 8.7%             

City of Tampa Florida, RB, CAB(b)
Series A, 0.00%, 09/01/49

    320        113,462  

Series A, 0.00%, 09/01/53

    340        100,212  

County of Broward Florida Airport System Revenue, ARB
Series A, AMT, 5.00%, 10/01/45

    1,005        1,163,398  

Series A, AMT, 5.00%, 10/01/49

    300        369,318  

County of Lee Florida Airport Revenue, Refunding RB,
Series A, AMT, 5.38%, 10/01/32

    2,000        2,051,500  

County of Miami-Dade Florida Aviation Revenue, Refunding RB, Series A, AMT, 5.00%, 10/01/22(c)

    2,440        2,631,003  

County of Miami-Dade Seaport Department, ARB
Series A, 5.38%, 10/01/33

    1,170        1,320,497  

Series B, AMT, 6.25%, 10/01/38

    525        600,332  

Series B, AMT, 6.00%, 10/01/42

    700        799,274  

County of Osceola Florida Transportation Revenue, Refunding RB, CAB(b)

    

Series A-2, 0.00%, 10/01/38

    1,000        606,890  

Series A-2, 0.00%, 10/01/41

    555        287,767  

Series A-2, 0.00%, 10/01/42

    410        204,676  

Series A-2, 0.00%, 10/01/43

    370        177,441  

Series A-2, 0.00%, 10/01/44

    380        175,492  

Series A-2, 0.00%, 10/01/45

    1,315        584,873  

Escambia County Health Facilities Authority, Refunding RB, 4.00%, 08/15/45

    1,895        2,191,397  

Hillsborough County Aviation Authority, Refunding RB, Sub-Series A, AMT, 5.50%, 10/01/29

    1,995        2,252,754  

Lakewood Ranch Stewardship District, SAB
5.25%, 05/01/37

    240        269,165  

5.38%, 05/01/47

    260        288,857  

Lee County Housing Finance Authority, RB, S/F Housing, Series A-2, AMT, (GNMA/FNMA/FHLMC), 6.00%, 09/01/40

    75        76,021  

Palm Beach County Health Facilities Authority, RB, Series B, 5.00%, 11/15/42

    85        100,681  

Reedy Creek Improvement District, GO, Series A, 5.25%, 06/01/23(c)

    1,200        1,343,064  
    

 

 

 
       17,708,074  

 

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

  27


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
     Value  
Georgia — 3.0%             

Main Street Natural Gas, Inc., RB
Series A, 5.00%, 05/15/37

  $ 1,475      $ 2,103,203  

Series A, 5.00%, 05/15/38

    910        1,311,610  

Series A, 5.00%, 05/15/49

    1,230        1,911,641  

Municipal Electric Authority of Georgia, RB
4.00%, 01/01/49

    280        320,124  

5.00%, 01/01/56

    385        464,726  
    

 

 

 
       6,111,304  
Hawaii — 0.5%             

State of Hawaii Airports System Revenue, COP
AMT, 5.25%, 08/01/25

    485        540,586  

AMT, 5.25%, 08/01/26

    525        585,086  
    

 

 

 
       1,125,672  
Illinois — 12.0%             

Chicago Board of Education, GO
Series C, 5.25%, 12/01/35

    970        1,084,955  

Series D, 5.00%, 12/01/46

    1,230        1,363,716  

Series H, 5.00%, 12/01/36

    295        349,823  

Chicago Board of Education, Refunding GO
Series C, 5.00%, 12/01/25

    415        491,845  

Series D, 5.00%, 12/01/25

    530        628,140  

Series G, 5.00%, 12/01/34

    290        346,492  

Chicago Midway International Airport, Refunding ARB, Series A, 2nd Lien, AMT, 5.00%, 01/01/41

    1,000        1,093,520  

Chicago Transit Authority Sales Tax Receipts Fund, RB, 5.25%, 12/01/21(c)

    2,000        2,085,080  

Cook County Community College District No.508, GO
5.50%, 12/01/38

    1,000        1,118,450  

5.25%, 12/01/43

    1,500        1,646,370  

Illinois Finance Authority, RB, Series A, 6.00%, 08/15/41 .

    4,000        4,122,840  

Metropolitan Pier & Exposition Authority, RB, Series A, 5.00%, 06/15/57

    1,215        1,417,164  

Metropolitan Pier & Exposition Authority, RB, CAB, (BAM), 0.00%, 12/15/56(b)

    2,965        923,479  

Metropolitan Pier & Exposition Authority, Refunding RB, 4.00%, 06/15/50

    315        348,280  

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, Series B, (BAM), 0.00%, 12/15/54(b)

    4,140        1,380,152  

Railsplitter Tobacco Settlement Authority, RB(c)
5.50%, 06/01/21

    1,370        1,394,386  

6.00%, 06/01/21

    390        397,644  

State of Illinois, GO
5.25%, 02/01/30

    2,010        2,249,391  

5.50%, 07/01/33

    1,000        1,095,470  

5.50%, 07/01/38

    415        453,288  

Series D, 5.00%, 11/01/28

    440        523,217  
    

 

 

 
       24,513,702  
Indiana — 1.1%             

City of Valparaiso Indiana, RB, AMT, 6.75%, 01/01/34

    1,350        1,481,747  

Indiana Finance Authority, Refunding RB, 4.75%, 03/01/22(c)

    700        735,126  
    

 

 

 
       2,216,873  
Iowa — 2.1%             

Iowa Finance Authority, Refunding RB
5.25%, 12/01/25

    865        970,911  

Series B, 5.25%, 12/01/50(d)

    1,255        1,406,001  

Iowa Student Loan Liquidity Corp., Refunding RB,
Series B, AMT, 3.00%, 12/01/39

    1,885        1,941,927  
    

 

 

 
       4,318,839  
Security   Par
(000)
     Value  
Kansas — 0.7%             

City of Lenexa Kansas, Refunding RB, Series A, 5.00%, 05/15/43

  $ 655      $ 705,048  

Kansas City Industrial Development Authority, ARB, AMT, (AGM), 4.00%, 03/01/57

    680        777,893  
    

 

 

 
       1,482,941  
Louisiana — 1.9%             

Lake Charles Harbor & Terminal District, ARB, Series B, AMT, (AGM), 5.50%, 01/01/29

    1,500        1,705,110  

Louisiana Public Facilities Authority, Refunding RB, 5.00%, 05/15/47

    1,895        2,234,887  
    

 

 

 
       3,939,997  
Maine — 0.4%             

Maine Health & Higher Educational Facilities Authority, RB, 7.50%, 07/01/21(c)

    765        790,100  
    

 

 

 
Maryland — 1.0%             

City of Baltimore Maryland, Refunding RB, Series A, 4.50%, 09/01/33

    185        196,714  

Montgomery County Housing Opportunities Commission, Refunding RB, S/F Housing, Series C, AMT, 3.30%, 07/01/39

    1,675        1,770,191  
    

 

 

 
       1,966,905  
Massachusetts — 2.6%             

Massachusetts Development Finance Agency, Refunding RB
4.00%, 07/01/39

    2,045        2,202,138  

Series A, 4.00%, 06/01/49

    170        193,671  

Massachusetts Educational Financing Authority, RB
Series B, AMT, 2.63%, 07/01/36

    525        551,192  

AMT, Subordinate, 3.75%, 07/01/47

    2,135        2,159,253  

Massachusetts Housing Finance Agency RB, Series D-1, 2.55%, 12/01/50

    295        299,142  
    

 

 

 
       5,405,396  
Michigan — 3.2%             

Eastern Michigan University, RB, Series A, 4.00%, 03/01/47

    1,455        1,642,317  

Michigan Finance Authority, Refunding RB, 4.00%, 11/15/46

    645        715,298  

Michigan State Housing Development Authority, RB, M/F Housing, Series A-1, 3.35%, 10/01/49

    2,720        2,882,085  

Michigan State Housing Development Authority, RB, S/F Housing
Series A, 4.00%, 06/01/49

    310        344,469  

Series C, 4.13%, 12/01/38

    220        230,910  

Michigan Strategic Fund, RB, AMT, 5.00%, 06/30/48

    570        687,089  
    

 

 

 
       6,502,168  
Montana — 0.1%             

City of Kalispell Montana, Refunding RB, Series A,
5.25%, 05/15/37

    170        176,688  
    

 

 

 
Nevada — 1.1%             

Las Vegas Convention & Visitors Authority, RB, Series B, 4.00%, 07/01/49

    2,000        2,226,980  
    

 

 

 
New Hampshire — 0.5%             

New Hampshire Housing Finance Authority, RB, M/F Housing, (FHA), 4.00%, 07/01/52

    1,000        1,092,090  
    

 

 

 
New Jersey — 5.9%             

New Jersey Economic Development Authority, RB, AMT, (AGM), 5.00%, 01/01/31

    900        1,002,366  

 

 

 

 

28  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Jersey (continued)            

New Jersey Higher Education Student Assistance Authority, RB, Series B, AMT, 3.50%, 12/01/39

  $ 755     $ 804,362  

New Jersey Transportation Trust Fund Authority, RB

   

Series AA, 4.13%, 06/15/39

    1,210       1,400,587  

Series AA, 5.50%, 06/15/39

    2,475       2,736,880  

Series AA, 5.00%, 06/15/45

    470       588,713  

Series AA, 3.00%, 06/15/50

    140       145,456  

New Jersey Transportation Trust Fund Authority, Refunding RB, Series A, 5.00%, 12/15/36

    180       221,792  

New Jersey Turnpike Authority, RB, Series A, 4.00%, 01/01/42(e)

    355       426,721  

South Jersey Transportation Authority, RB, Series A, 4.00%, 11/01/50

    305       353,577  

Tobacco Settlement Financing Corp., Refunding RB, Sub-Series B, 5.00%, 06/01/46

    3,610       4,297,308  
   

 

 

 
      11,977,762  
New York — 9.6%            

Metropolitan Transportation Authority, Refunding RB
Series C-1, 5.00%, 11/15/56

    3,010       3,458,550  

Series D, 5.00%, 11/15/31

    460       546,604  

New York City Housing Development Corp. RB
(FHA 542 (C)), 2.70%, 11/01/55

    1,050       1,066,412  

Series I-1, (FHA), 2.55%, 11/01/45

    1,315       1,343,010  

New York City Housing Development Corp., RB, M/F Housing, Series A, 3.00%, 11/01/55

    820       849,651  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Series C, 4.00%, 05/01/45

    935       1,115,511  

New York City Water & Sewer System, RB, Series DD-1, 3.00%, 06/15/50

    3,000       3,260,730  

New York Counties Tobacco Trust IV, Refunding RB, Series A, 6.25%, 06/01/41(a)

    1,100       1,117,776  

New York State Housing Finance Agency RB, Series L-1, (SONYMA), 2.50%, 11/01/45

    1,760       1,798,051  

New York State Thruway Authority, Refunding RB
Series B, Subordinate, 3.00%, 01/01/46

    1,575       1,671,658  

Series B, Subordinate, 4.00%, 01/01/50

    510       590,034  

New York Transportation Development Corp., ARB, Series A, AMT, 5.25%, 01/01/50

    475       539,277  

New York Transportation Development Corp., RB
AMT, 5.00%, 10/01/35

    205       254,743  

AMT, 5.00%, 10/01/40

    585       721,925  

Port Authority of New York & New Jersey Refunding RB, AMT, 4.00%, 07/15/41(e)

    1,175       1,398,685  
   

 

 

 
      19,732,617  
North Carolina — 0.2%            

North Carolina Medical Care Commission, RB, 4.00%, 11/01/52

    445       519,675  
   

 

 

 
Ohio — 3.5%            

Buckeye Tobacco Settlement Financing Authority, Refunding RB, Series B-2, Class 2, 5.00%, 06/01/55

    1,895       2,208,869  

County of Montgomery Ohio, Refunding RB, 4.00%, 11/15/42

    715       795,352  

Montgomery County Refunding RB, 4.00%, 08/01/51(e)

    890       1,043,017  

Ohio Air Quality Development Authority, RB, AMT, 5.00%, 07/01/49(a)

    460       515,421  
Security   Par
(000)
    Value  
Ohio (continued)            

Ohio Housing Finance Agency, RB, S/F Housing, Series A, (FHLMC, FNMA, GNMA), 4.00%, 09/01/48

  $ 225     $ 245,457  

Ohio Turnpike & Infrastructure Commission, RB, Series A-1, Junior Lien, 5.25%, 02/15/31

    1,000       1,100,840  

State of Ohio, Refunding RB, Series A, 4.00%, 01/15/50 .

    1,055       1,233,316  
   

 

 

 
      7,142,272  
Oklahoma — 0.9%            

Oklahoma Development Finance Authority, RB, Series B, 5.25%, 08/15/48

    760       895,105  

Oklahoma Turnpike Authority, RB, Series A, 4.00%, 01/01/48

    325       370,445  

Tulsa County Industrial Authority, Refunding RB, 5.25%, 11/15/37

    450       481,716  
   

 

 

 
      1,747,266  
Oregon — 0.1%            

State of Oregon Housing & Community Services Department, RB, S/F Housing, Series C, 3.95%, 07/01/43

    205       230,102  
   

 

 

 
Pennsylvania — 5.5%            

Allentown Neighborhood Improvement Zone Development Authority, RB, 5.00%, 05/01/42(a)

    585       663,396  

Bristol Township School District, GO, (SAW), 5.25%, 06/01/37

    1,500       1,654,620  

Bucks County Industrial Development Authority, RB, 4.00%, 08/15/50

    1,430       1,607,863  

Montgomery County Higher Education and Health Authority, Refunding RB, Series A, 4.00%, 09/01/49

    560       618,582  

Pennsylvania Economic Development Financing Authority, RB, Series A-1, 4.00%, 04/15/50

    525       613,111  

Pennsylvania Economic Development Financing Authority, Refunding RB, AMT, 5.50%, 11/01/44

    1,000       1,062,710  

Pennsylvania Higher Education Assistance Agency, RB, Series B, AMT, Subordinate, 3.00%, 06/01/47

    105       103,823  

Pennsylvania Higher Educational Facilities Authority, RB, 4.00%, 08/15/44

    1,000       1,177,090  

Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing, Series 119, 3.50%, 10/01/36

    1,450       1,562,998  

Pennsylvania Turnpike Commission RB, 4.00%, 12/01/50

    665       778,150  

Pennsylvania Turnpike Commission, RB, Series A, Subordinate, 4.00%, 12/01/49

    1,215       1,402,256  
   

 

 

 
      11,244,599  
Puerto Rico — 5.5%            

Children’s Trust Fund, Refunding RB
5.50%, 05/15/39

    430       441,253  

5.63%, 05/15/43

    445       450,407  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Series A, Senior Lien, 5.00%, 07/01/33

    1,280       1,349,030  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB
Series A-1, Restructured, 4.75%, 07/01/53

    1,176       1,316,167  

Series A-1, Restructured, 5.00%, 07/01/58

    5,150       5,848,649  

Series A-2, Restructured, 4.33%, 07/01/40

    364       402,355  

Series A-2, Restructured, 4.78%, 07/01/58

    136       152,410  
 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

  29


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Puerto Rico (continued)            

Puerto Rico Sales Tax Financing Corp. Sales Tax
Revenue, RB (continued)

   

Series B-1, Restructured, 4.75%, 07/01/53

  $ 252     $ 282,011  

Series B-2, Restructured, 4.78%, 07/01/58

    244       273,375  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(b)

    2,168       685,630  
   

 

 

 
      11,201,287  
Rhode Island — 3.4%            

Rhode Island Student Loan Authority, RB, Series A, AMT, 3.63%, 12/01/37

    1,060       1,132,133  

Rhode Island Turnpike & Bridge Authority, RB
Series A, 3.00%, 10/01/38

    375       410,456  

Series A, 3.00%, 10/01/39

    535       583,594  

Tobacco Settlement Financing Corp., Refunding RB
Series A, 5.00%, 06/01/35

    525       609,767  

Series B, 4.50%, 06/01/45

    3,950       4,197,744  
   

 

 

 
      6,933,694  
South Carolina — 5.2%            

Charleston County Airport District, ARB
Series A, AMT, 6.00%, 07/01/38

    1,955       2,202,151  

Series A, AMT, 5.50%, 07/01/41

    1,000       1,113,110  

County of Charleston South Carolina, ARB, 5.25%, 12/01/38

    2,505       2,847,960  

South Carolina Jobs-Economic Development Authority, Refunding RB, Series A, 4.25%, 05/01/48

    1,685       1,896,147  

South Carolina Ports Authority, ARB
AMT, 5.25%, 07/01/25(c)

    1,280       1,549,939  

AMT, 5.00%, 07/01/55

    820       997,768  
   

 

 

 
      10,607,075  
Tennessee — 0.9%            

Greeneville Health & Educational Facilities Board, Refunding RB, Series A, 4.00%, 07/01/40

    1,575       1,775,151  
   

 

 

 
Texas — 4.6%            

Brazos Higher Education Authority, Inc., RB, Series 1B, AMT, Subordinate, 3.00%, 04/01/40

    70       67,371  

City of Houston Texas Airport System Revenue, Refunding ARB, AMT, 5.00%, 07/15/27

    140       163,461  

City of Houston Texas Airport System Revenue, Refunding RB
Series A, AMT, 5.00%, 07/01/27

    135       157,514  

Series A, AMT, 6.63%, 07/15/38

    250       255,622  

Sub-Series A, AMT, 4.00%, 07/01/47

    210       240,022  

Dallas Fort Worth International Airport, ARB, Series H, AMT, 5.00%, 11/01/21(c)

    1,535       1,588,848  

North Texas Tollway Authority, Refunding RB, 4.25%, 01/01/49

    720       837,202  

Red River Education Finance Corp., RB, 5.25%, 03/15/23(c)

    710       786,488  

Texas Department of Housing & Community Affairs, RB, S/F Housing, Series A, (GNMA), 4.25%, 09/01/43

    230       252,220  

Texas Municipal Gas Acquisition & Supply Corp. III Refunding RB, 5.00%, 12/15/32(e)

    75       103,043  

Texas Private Activity Bond Surface Transportation Corp., RB, AMT, 5.00%, 06/30/58

    1,795       2,174,894  

Texas Transportation Commission, RB, CAB(b)
0.00%, 08/01/35

    310       191,589  

0.00%, 08/01/36

    170       99,647  

0.00%, 08/01/37

    225       124,819  
Security   Par
(000)
    Value  
Texas (continued)            
Texas Transportation Commission, RB, CAB(b) (continued)            

0.00%, 08/01/38

  $ 810     $ 425,736  

0.00%, 08/01/41

    1,950       868,354  

0.00%, 08/01/44

    1,010       382,346  

0.00%, 08/01/45

    1,775       637,385  
   

 

 

 
      9,356,561  
Virginia — 3.6%            

Lexington Industrial Development Authority, RB, 5.00%, 01/01/22(c)

    560       585,155  

Tobacco Settlement Financing Corp., Refunding RB, Series B-1, 5.00%, 06/01/47

    1,395       1,410,136  

Virginia Housing Development Authority, RB, M/F Housing, Series D, 3.90%, 10/01/48

    1,570       1,746,405  

Virginia Housing Development Authority, RB, S/F Housing, Series E, 3.15%, 12/01/49

    1,070       1,144,686  

Virginia Small Business Financing Authority, RB AMT, 5.00%, 01/01/48(a)(d)

    585       591,423  

AMT, Senior Lien, 6.00%, 01/01/37

    1,715       1,846,129  
   

 

 

 
      7,323,934  
Washington — 0.4%            

King County Housing Authority, Refunding RB, 3.00%, 06/01/40

    490       527,113  

Washington Health Care Facilities Authority, Refunding RB, 5.00%, 09/01/55

    315       400,869  
   

 

 

 
      927,982  
West Virginia — 1.1%            

West Virginia Hospital Finance Authority, RB, Series A, 4.00%, 06/01/51

    1,940       2,177,126  
   

 

 

 
Wisconsin — 1.2%            

Public Finance Authority, Refunding RB, 5.25%, 05/15/52(a)

    1,015       1,077,889  

Wisconsin Housing & Economic Development Authority, RB, M/F Housing
Series A, 3.15%, 11/01/44

    520       554,908  

Series A, 4.45%, 05/01/57

    660       734,375  
   

 

 

 
      2,367,172  
   

 

 

 

Total Municipal Bonds — 108.0%
(Cost: $199,592,488)

 

    220,790,266  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(f)

 

Arizona — 0.6%            

Maricopa County Industrial Development Authority, RB, Series A, 4.00%, 01/01/41

    1,065       1,230,395  
   

 

 

 
California — 2.3%            

Bay Area Toll Authority, Refunding RB, 4.00%, 04/01/42(g)

    1,998       2,324,342  

Sacramento Area Flood Control Agency, Refunding SAB, 5.00%, 10/01/47

    1,980       2,411,537  
   

 

 

 
      4,735,879  
District of Columbia — 0.3%            

District of Columbia Housing Finance Agency, RB, M/F

   

Housing, Series B-2, (FHA), 4.10%, 09/01/39

    610       692,557  
   

 

 

 
Florida — 5.7%            

City Of South Miami Health Facilities Authority, Inc.,

   

Refunding RB, 5.00%, 08/15/47

    1,575       1,924,398  
 

 

 

30  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
     Value  
Florida (continued)             

City of Tampa Florida, RB, Series A, 4.00%, 11/15/46

  $ 1,918      $ 2,149,470  

County of Broward Florida Port Facilities Revenue, ARB, Series B, AMT, 4.00%, 09/01/49

    2,660        3,050,860  

Greater Orlando Aviation Authority, ARB, Series A, AMT, 4.00%, 10/01/49(g)

    3,858        4,438,080  
    

 

 

 
       11,562,808  
Georgia — 2.3%             

Georgia Housing & Finance Authority, Refunding RB

    

Series A, 3.60%, 12/01/44

    1,605        1,775,759  

Series A, 3.70%, 06/01/49

    2,676        2,969,184  
    

 

 

 
       4,744,943  
Illinois — 0.5%             

Illinois Finance Authority, Refunding RB

    

Series C, 4.00%, 02/15/27(c)

    2        2,583  

Series C, 4.00%, 02/15/41

    912        1,029,653  
    

 

 

 
       1,032,236  
Maryland — 2.0%             

City of Baltimore Maryland, RB, Series A, 4.00%, 07/01/49

    3,378        4,003,737  
    

 

 

 
Massachusetts — 0.6%             

Massachusetts Housing Finance Agency, RB, Series A-1, (FHA), 3.10%, 06/01/60

    1,246        1,298,888  
    

 

 

 
Michigan — 4.0%             

Michigan Finance Authority, RB, 4.00%, 02/15/47

    1,964        2,260,879  

Michigan State Building Authority, Refunding RB, Series I, 4.00%, 04/15/54

    2,524        2,944,852  

Michigan State Housing Development Authority, RB, M/F Housing, Series A, 4.05%, 10/01/48

    2,756        3,053,666  
    

 

 

 
       8,259,397  
Nebraska — 0.3%             

Nebraska Investment Finance Authority, RB, S/F Housing, Series A, (FHLMC, FNMA, GNMA), 3.70%, 03/01/47

    593        681,844  
    

 

 

 
Nevada — 4.7%             

County of Clark Nevada, GO, Series A, 5.00%, 05/01/48 .

    2,739        3,405,881  

Las Vegas Valley Water District, Refunding GO, Series C, 5.00%, 06/01/28

    6,070        6,167,424  
    

 

 

 
       9,573,305  
New Jersey — 0.5%             

New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 06/15/36(g)

    1,000        1,031,342  
    

 

 

 
New York — 11.1%             

Hudson Yards Infrastructure Corp., RB(g)
5.75%, 02/15/21(c)

    299        299,779  

5.75%, 02/15/47

    184        184,415  

New York City Housing Development Corp., Refunding RB, Series A, 4.15%, 11/01/38

    1,280        1,443,520  
Security   Par
(000)
     Value  
New York (continued)             

New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Series C, 3.00%, 05/01/46

  $ 1,487      $ 1,616,469  

New York City Water & Sewer System, Refunding RB
Series BB, 5.25%, 12/15/21(c)

    4,408        4,606,063  

Series FF, 5.00%, 06/15/45

    3,859        4,097,173  

New York Liberty Development Corp., ARB, 5.25%, 12/15/43

    4,365        4,553,833  

New York Liberty Development Corp., Refunding RB, 5.75%, 11/15/51(g)

    2,560        2,663,645  

New York Power Authority, Refunding RB, Series A, 4.00%, 11/15/60

    1,740        2,053,496  

Port Authority of New York & New Jersey, ARB, Series 221, AMT, 4.00%, 07/15/60

    944        1,076,624  
    

 

 

 
       22,595,017  
Pennsylvania — 1.9%             

Commonwealth of Pennsylvania, GO,
1st Series, 4.00%, 03/01/36(g)

    1,769        2,090,050  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    1,514        1,886,688  
    

 

 

 
       3,976,738  
Rhode Island — 0.8%             

Rhode Island Housing and Mortgage Finance Corp., Refunding RB, S/F Housing, Series 69-B, (FHLMC, FNMA, GNMA), 3.55%, 10/01/33

    1,440        1,597,824  
    

 

 

 
South Carolina — 1.3%             

South Carolina Ports Authority, ARB, Series B, AMT, 4.00%, 07/01/49(g)

    2,235        2,571,367  
    

 

 

 
Texas — 4.6%             

County of Hidalgo Texas, GO, Series A, 4.00%, 08/15/43

    2,703        3,148,135  

North Texas Tollway Authority, RB, Series A, 5.50%, 09/01/21(c)

    3,480        3,588,089  

Texas Department of Housing & Community Affairs, RB, S/F Housing

    

Series A, (GNMA), 3.63%, 09/01/44

    495        543,162  

Series A, (GNMA), 3.00%, 09/01/45

    611        650,315  

Series A, (GNMA), 3.75%, 09/01/49

    271        297,791  

Series A, (GNMA), 3.00%, 03/01/50

    1,159        1,232,201  
    

 

 

 
       9,459,693  
Washington — 0.9%             

Washington Health Care Facilities Authority, Refunding

    

RB, Series B, 4.13%, 08/15/43

    1,641        1,843,355  
    

 

 

 

 

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

  31


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Wisconsin — 0.9%            

Wisconsin Housing & Economic Development Authority, RB, M/F Housing, Series A, 4.30%, 11/01/53

  $ 1,605     $ 1,781,454  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 45.3%
(Cost: $86,097,923)

 

    92,672,779  
   

 

 

 

Total Long-Term Investments — 153.3%
(Cost: $285,690,411)

 

    313,463,045  
   

 

 

 
     Shares         

Short-Term Securities

   
Money Market Funds — 2.0%            

BlackRock Liquidity Funds, MuniCash, Institutional

   

Class, 0.01%(h)(i)

    4,021,753       4,022,557  
   

 

 

 
Total Short-Term Securities — 2.0%
(Cost: $4,022,552)
        4,022,557  
   

 

 

 

Total Investments — 155.3%
(Cost: $289,712,963)

 

    317,485,602  

Liabilities in Excess of Other Assets — (0.4)%

 

    (670,331

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (26.0)%

 

    (53,194,769

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (28.9)%

 

    (59,164,736
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 204,455,766  
   

 

 

 

 

(a) 

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.

(b) 

Zero-coupon bond.

(c) 

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.

(d) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(e) 

When-issued security.

(f) 

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. See Note 4 of the Notes to Financial Statements for details.

(g) 

All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between May 15, 2021 to February 15, 2047, is $9,328,479.

(h) 

Affiliate of the Fund.

(i) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six-months ended January 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
07/31/20
    

Purchases

at Cost

     Proceeds
from Sales
     Net
Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
01/31/21
    

Shares

Held at
01/31/21

     Income      Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

   $  230,913      $  3,791,606 (a)     $  —      $  33      $  5      $  4,022,557        4,021,753      $  96      $  —  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount (000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

           

10-Year U.S. Treasury Note.

     25        03/22/21      $ 3,426      $ 7,872  

Long U.S. Treasury Bond

     14        03/22/21        2,362        37,524  
           

 

 

 
            $  45,396  
           

 

 

 

 

 

 

32  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield Investment Fund (MYF)

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

 

                 

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 45,396      $      $ 45,396  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the six months ended January 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from

                    

Futures contracts

   $      $      $      $      $ 56,819      $      $ 56,819  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $      $      $ 45,396      $      $ 45,396  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — short

   $ 2,893,922  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Municipal Bonds

   $        $ 220,790,266        $             —        $ 220,790,266  

Municipal Bonds Transferred to Tender Option Bond Trusts

              92,672,779                   92,672,779  

Short-Term Securities

                 

Money Market Funds

     4,022,557                            4,022,557  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 4,022,557        $ 313,463,045        $        $ 317,485,602  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Interest Rate Contracts

   $ 45,396        $        $        $ 45,396  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

  33


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield Investment Fund (MYF)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement 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

   $        $ (53,174,814      $        $ (53,174,814

VRDP Shares at Liquidation Value

              (59,400,000                 (59,400,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (112,574,814      $             —        $ (112,574,814
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

34  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited)

January 31, 2021

  

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

(Percentages shown are based on Net Assets)

 

Security

  Par
(000)
    Value  

Municipal Bonds

   
Guam — 0.6%            
Utilities — 0.6%            

Guam Government Waterworks Authority, RB,

   

Series A, 5.00%, 01/01/50

  $ 1,930     $ 2,333,949  
   

 

 

 
New Jersey — 120.8%            
Corporate — 3.5%            

New Jersey Economic Development Authority, RB

   

Series A, (NPFGC), 5.25%, 07/01/25(a)

    415       503,051  

Series A, AMT, 5.63%, 11/15/30

    1,730       1,927,133  

Series B, AMT, 5.63%, 11/15/30

    5,000       5,575,150  

New Jersey Economic Development Authority, Refunding RB

   

3.38%, 04/01/38

    1,810       1,916,283  

3.50%, 04/01/42

    1,355       1,435,555  

Series A, AMT, 2.20%, 10/01/39(b)

    2,130       2,329,325  
   

 

 

 
      13,686,497  
County/City/Special District/School District — 16.9%        

Casino Reinvestment Development Authority, Inc., Refunding RB

   

5.25%, 11/01/39

    2,280       2,446,212  

5.25%, 11/01/44

    12,000       12,812,520  

City of Bayonne New Jersey, Refunding GO

   

(BAM), 5.00%, 07/01/33

    1,565       1,880,473  

(BAM), 5.00%, 07/01/35

    2,425       2,899,330  

County of Middlesex New Jersey, Refunding COP, 5.00%, 10/15/31

    2,840       3,379,856  

Essex County Improvement Authority, RB, (GTD), 4.00%, 11/01/49

    465       522,111  

Essex County Improvement Authority, Refunding RB

   

(GTD, NPFGC), 5.50%, 10/01/28

    4,540       6,249,537  

(NPFGC), 5.50%, 10/01/29

    8,505       12,006,508  

Ewing Township Board of Education, GO

   

(SCH BD RES FD), 4.00%, 07/15/38

    1,190       1,386,088  

(SCH BD RES FD), 4.00%, 07/15/39

    1,090       1,264,389  

Hudson County Improvement Authority, RB, 4.00%, 10/01/51

    700       826,161  

Mercer County Improvement Authority, RB, 5.00%, 09/01/40

    2,480       2,997,154  

Monmouth County Improvement Authority, RB

   

Series B, (GTD), 4.00%, 12/01/37

    500       606,860  

Series B, (GTD), 4.00%, 12/01/38

    510       616,758  

Monroe Township Board of Educationddlesex County, Refunding GO, (SCH BD RES FD), 5.00%, 03/01/25(c)

    2,750       3,280,173  

New Jersey Economic Development Authority, RB, Series B, AMT, 6.50%, 04/01/31

    4,590       4,927,090  

New Jersey Economic Development Authority, Refunding SAB, 6.50%, 04/01/28

    4,750       5,245,188  

Union County Improvement Authority, RB, (GTD), 5.00%, 05/01/42

    2,320       2,456,578  

Union County Utilities Authority, Refunding RB, Series A, AMT, (GTD), 5.25%, 12/01/31

    670       696,351  
   

 

 

 
      66,499,337  
Education — 17.4%            

Atlantic County Improvement Authority, RB, Series A, (AGM), 4.00%, 07/01/46

    950       1,018,552  

Security

  Par
(000)
    Value  
Education (continued)            

New Jersey Economic Development Authority RB, 4.00%, 06/15/50

  $ 1,045     $ 1,196,974  

New Jersey Economic Development Authority, RB
6.00%, 10/01/33

    4,675       5,165,594  

Series A, 5.00%, 07/01/27(d)

    330       353,975  

Series A, 5.13%, 11/01/29(d)

    150       164,274  

Series A, 5.25%, 07/01/37(d)

    1,030       1,103,758  

Series A, 5.00%, 07/01/38

    160       185,042  

Series A, 6.25%, 11/01/38(d)

    440       504,614  

Series A, 5.00%, 07/01/47

    440       440,163  

Series A, 5.38%, 07/01/47(d)

    1,685       1,785,561  

Series A, 5.00%, 12/01/48

    4,475       5,152,783  

Series A, 5.00%, 06/15/49(d)

    970       1,036,629  

Series A, 5.00%, 07/01/50

    410       462,853  

Series A, 6.50%, 11/01/52(d)

    2,490       2,833,670  

Series A, 5.00%, 06/15/54(d)

    730       777,494  

Series A, 5.25%, 11/01/54(d)

    1,805       1,831,209  

New Jersey Economic Development Authority, Refunding RB

   

(AGM), 5.00%, 06/01/37

    2,280       2,678,863  

Series A, 4.25%, 09/01/27(d)

    210       222,800  

Series A, 5.63%, 08/01/34(d)

    630       669,753  

Series A, 5.00%, 09/01/37(d)

    805       868,426  

Series A, 5.88%, 08/01/44(d)

    1,070       1,127,630  

Series A, 6.00%, 08/01/49(d)

    555       585,059  

Series A, 5.13%, 09/01/52(d)

    1,700       1,796,509  

New Jersey Educational Facilities Authority, RB

   

Series A, 5.00%, 07/01/45

    1,075       1,321,304  

Series C, (AGM), 3.25%, 07/01/49

    475       511,808  

Series C, (AGM), 4.00%, 07/01/50

    400       458,044  

New Jersey Educational Facilities Authority, Refunding RB

   

Series A, (BAM), 5.00%, 07/01/28

    915       1,082,967  

Series A, 5.00%, 07/01/44

    10,960       12,273,994  

Series A, 4.00%, 07/01/47

    955       1,037,321  

Series B, 5.00%, 07/01/42

    690       732,325  

Series D, 5.00%, 07/01/38

    500       538,765  

New Jersey Higher Education Student Assistance Authority, RB

   

Series 1A, AMT, 5.00%, 12/01/22

    915       993,708  

Sub-Series C, AMT, 4.00%, 12/01/48

    1,450       1,524,167  

New Jersey Higher Education Student Assistance Authority, Refunding RB

   

1st Series, AMT, 5.75%, 12/01/29

    2,585       2,663,481  

Sub-Series C, AMT, 3.63%, 12/01/49

    1,925       1,968,774  

New Jersey Institute of Technology, RB

   

Series A, 5.00%, 07/01/22(c)

    2,455       2,623,045  

Series A, 5.00%, 07/01/40

    3,000       3,482,880  

Series A, 5.00%, 07/01/45

    4,500       5,224,320  
   

 

 

 
      68,399,088  
Health — 8.5%            

Camden County Improvement Authority, Refunding RB, 5.00%, 02/15/34

    590       653,472  

New Jersey Economic Development Authority, Refunding RB

   

5.00%, 01/01/34

    555       646,486  

5.00%, 01/01/39

    555       639,399  
 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

  35


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

(Percentages shown are based on Net Assets)

 

Security   Par (000)     Value  
Health (continued)            

New Jersey Health Care Facilities Financing Authority, RB
5.00%, 07/01/42

  $ 1,685     $ 2,043,922  

4.00%, 07/01/44

    2,755       3,223,736  

Series A, 5.50%, 07/01/43

    2,400       2,695,080  

New Jersey Health Care Facilities Financing Authority, Refunding RB
6.00%, 07/01/21(c)

    4,090       4,189,264  

5.00%, 07/01/34

    860       1,055,418  

5.00%, 07/01/39

    2,530       3,074,532  

4.00%, 07/01/41

    1,400       1,580,180  

Series A, 5.63%, 07/01/21(c)

    6,990       7,149,066  

Series A, 6.00%, 07/01/21(c)

    900       921,843  

Series A, 4.00%, 07/01/43

    1,635       1,857,278  

Series A, 5.00%, 07/01/43

    3,305       3,980,839  
   

 

 

 
      33,710,515  
Hotels, Restaurants & Leisure — 0.0%            

Middlesex County Improvement Authority, RB, Series B, 6.25%, 01/01/37(e)(f)

    2,350       47,000  
   

 

 

 
Housing — 2.7%            

New Jersey Housing & Mortgage Finance Agency Refunding RB

   

Series A, (FHLMC), 2.45%, 11/01/45

    385       384,242  

Series A, (FHLMC), 2.55%, 11/01/50

    350       347,813  

Series A, (FHLMC), 2.63%, 11/01/56

    350       348,134  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing

   

Series A, 4.00%, 11/01/48

    305       333,054  

Series A, 4.10%, 11/01/53

    180       195,921  

Series D, AMT, 4.25%, 11/01/37

    1,260       1,380,292  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing

   

Series A, 3.75%, 10/01/35

    2,630       2,955,357  

Series E, 2.25%, 10/01/40

    1,365       1,372,385  

Series E, 2.40%, 10/01/45

    1,050       1,060,111  

Newark Housing Authority Scholarship Foundation A New Jersey Non, RB, M/F Housing, Series A, 5.00%, 12/01/30

    2,000       2,237,800  
   

 

 

 
      10,615,109  
State — 34.9%            

Garden State Preservation Trust, RB, CAB(g)

   

Series B, (AGM), 0.00%, 11/01/23

    1,460       1,421,193  

Series B, (AGM), 0.00%, 11/01/26

    6,000       5,569,200  

Series B, (AGM), 0.00%, 11/01/27

    4,000       3,640,000  

Series B, (AGM), 0.00%, 11/01/28

    4,540       4,026,481  

New Jersey Economic Development Authority, RB 4.00%, 06/15/49

    2,380       2,692,232  

Series A, (NPFGC), 5.25%, 07/01/25

    3,450       4,077,969  

Series B, 5.00%, 06/15/35

    3,750       4,632,263  

Series B, 5.00%, 06/15/43

    2,235       2,706,026  

Series EEE, 5.00%, 06/15/43

    4,450       5,387,837  

New Jersey Economic Development Authority, Refunding RB (AGM), 5.00%, 06/15/22

    3,690       3,871,696  

5.00%, 06/15/26

    1,250       1,313,638  

5.00%, 06/15/28

    975       1,014,497  

5.00%, 06/15/29

    2,260       2,375,644  

4.00%, 07/01/46

    2,255       2,581,772  

Series GG, 5.25%, 09/01/27

    4,295       4,311,665  
Security   Par
(000)
    Value  
State (continued)            
New Jersey Economic Development Authority,
Refunding RB (continued)
           

Sub-Series A, 5.00%, 07/01/33.

  $ 1,175     $ 1,342,449  

Sub-Series A, 4.00%, 07/01/34.

    1,270       1,395,209  

New Jersey Educational Facilities Authority, RB, Series A, 5.00%, 09/01/32

    4,000       4,566,960  

New Jersey Transportation Trust Fund Authority RB, Series AA, 4.00%, 06/15/50.

    5,000       5,728,600  

New Jersey Transportation Trust Fund Authority, RB
Series A, 5.00%, 06/15/42

    6,885       7,267,186  

Series AA, 5.00%, 06/15/38

    9,490       10,720,094  

Series AA, 5.50%, 06/15/39

    8,205       9,073,171  

Series AA, 5.25%, 06/15/41

    5,000       5,783,550  

Series AA, 3.00%, 06/15/50

    630       654,551  

Series B, 5.00%, 06/15/33

    1,110       1,375,712  

Series BB, 4.00%, 06/15/50

    2,690       3,006,156  

New Jersey Transportation Trust Fund Authority, RB, CAB

   

Series B, 5.25%, 06/15/36

    8,500       8,655,805  

Series C, (AGM), 0.00%, 12/15/32(g)

    5,250       4,380,968  

Series C, (AMBAC), 0.00%, 12/15/35(g)

    4,140       2,962,874  

New Jersey Transportation Trust Fund Authority, Refunding RB
4.00%, 12/15/39

    1,000       1,153,060  

Series A, 5.00%, 12/15/32

    3,530       4,397,568  

Series A, 5.00%, 12/15/35

    905       1,116,815  

Series A, 5.00%, 12/15/36

    500       616,090  

South Jersey Port Corp., ARB, Series B, AMT, 5.00%, 01/01/48

    7,620       8,500,872  

State of New Jersey, GO, Series A, 4.00%, 06/01/32

    4,180       5,300,031  
   

 

 

 
      137,619,834  
Tobacco — 7.0%            

Tobacco Settlement Financing Corp., Refunding RB

   

Series A, 5.00%, 06/01/46

    7,000       8,470,420  

Series A, 5.25%, 06/01/46

    1,595       1,952,711  

Sub-Series B, 5.00%, 06/01/46

    14,375       17,111,856  
   

 

 

 
      27,534,987  
Transportation — 26.4%            

New Jersey Economic Development Authority, RB

   

AMT, (AGM), 5.00%, 01/01/31

    1,000       1,113,740  

AMT, 5.38%, 01/01/43

    15,780       17,245,173  

New Jersey Economic Development Authority, Refunding ARB, AMT, 5.00%, 10/01/37

    2,750       3,246,485  

New Jersey Transportation Trust Fund Authority, RB

   

Series A, 5.50%, 06/15/21(c)

    8,330       8,495,017  

Series A, 6.00%, 06/15/21(c)

    11,440       11,687,791  

Series A, 5.00%, 06/15/30

    2,000       2,382,040  

New Jersey Transportation Trust Fund Authority, Refunding RB, Series A, 5.00%, 06/15/31

    5,540       6,564,955  

New Jersey Turnpike Authority RB, Series A, 4.00%, 01/01/51(h)

    6,570       7,795,042  

New Jersey Turnpike Authority, RB

   

Series A, 5.00%, 07/01/22(c)

    7,015       7,495,177  

Series A, 5.00%, 01/01/35

    1,060       1,298,638  

Series E, 5.00%, 01/01/45

    720       835,214  

New Jersey Turnpike Authority, Refunding RB

   

Series A, 5.00%, 01/01/22(c)

    1,000       1,044,370  

Series B, 5.00%, 01/01/34

    1,150       1,443,285  

Series G, 4.00%, 01/01/43

    1,445       1,651,043  
 

 

 

36  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Transportation (continued)            

Port Authority of New York & New Jersey, ARB

   

Consolidated, 93rd Series, 6.13%, 06/01/94

  $ 5,000     $ 5,861,350  

Consolidated, 218th Series, AMT, 4.00%, 11/01/34

    3,285       3,908,066  

Consolidated, 218th Series, AMT, 4.00%, 11/01/47

    4,970       5,743,630  

Consolidated, 221st Series, AMT, 4.00%, 07/15/45

    2,165       2,524,368  

Port Authority of New York & New Jersey, Refunding ARB

   

Consolidated, 166th Series, 5.25%, 07/15/36

    8,500       8,534,850  

Consolidated, 172nd Series, AMT, 5.00%, 10/01/34 .

    2,500       2,633,950  

Consolidated, 206th Series, AMT, 5.00%, 11/15/47

    1,525       1,821,155  

South Jersey Transportation Authority, RB, Series A, 5.00%, 11/01/45

    575       733,562  
   

 

 

 
      104,058,901  
Utilities — 3.5%            

Passaic Valley Sewerage Commission, Refunding RB

   

Series J, (AGM), 3.00%, 12/01/40

    920       1,016,747  

Series J, (AGM), 3.00%, 12/01/41

    940       1,036,829  

Series J, (AGM), 3.00%, 12/01/42

    965       1,062,533  

Series J, (AGM), 3.00%, 12/01/43

    985       1,082,357  

Series J, (AGM), 3.00%, 12/01/44

    1,005       1,102,254  

Series J, (AGM), 3.00%, 12/01/45

    1,030       1,128,108  

Rahway Valley Sewerage Authority, RB, CAB(g)

   

Series A, (NPFGC), 0.00%, 09/01/31

    6,000       5,157,240  

Series A, (NPFGC), 0.00%, 09/01/33

    2,650       2,157,073  
   

 

 

 
      13,743,141  
   

 

 

 

Total Municipal Bonds in New Jersey

      475,914,409  

New York — 3.2%

   
Transportation — 3.2%            

Port Authority of New York & New Jersey Refunding RB, AMT, 4.00%, 07/15/51(h)

    2,395       2,819,274  

Port Authority of New York & New Jersey, Refunding ARB

   

Consolidated, 169th Series, AMT, 5.00%, 10/15/41

    250       257,963  

Consolidated, 206th Series, AMT, 5.00%, 11/15/42

    1,365       1,649,002  

Port Authority of New York & New Jersey, Refunding RB

   

Consolidated, 200th Series, 5.00%, 09/01/36

    2,495       3,216,329  

Consolidated, 212th Series, 4.00%, 09/01/37

    4,000       4,770,760  
   

 

 

 

Total Municipal Bonds in New York

      12,713,328  

Pennsylvania — 1.1%

   
Transportation — 1.1%            

Delaware River Port Authority, RB, 5.00%, 01/01/40

    4,000       4,521,680  
   

 

 

 
Puerto Rico — 6.0%            
State — 4.6%            

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

   

Series A-1, Restructured, 4.75%, 07/01/53

    2,225       2,490,198  

Series A-1, Restructured, 5.00%, 07/01/58

    9,254       10,509,398  

Series A-2, Restructured, 4.33%, 07/01/40

    1,131       1,250,173  
Security   Par
(000)
    Value  
State (continued)            
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue,
RB (continued)
           

Series A-2, Restructured, 4.78%, 07/01/58

  $ 2,028     $ 2,272,699  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(g)

    4,385       1,386,756  
   

 

 

 
      17,909,224  
Tobacco — 0.4%            

Children’s Trust Fund, Refunding RB

   

5.50%, 05/15/39

    760       779,889  

5.63%, 05/15/43

    790       799,599  
   

 

 

 
      1,579,488  
Utilities — 1.0%            

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB

   

Series A, Senior Lien, 5.00%, 07/01/33

    2,995       3,156,520  

Series A, Senior Lien, 5.13%, 07/01/37

    855       904,616  
   

 

 

 
      4,061,136  
   

 

 

 

Total Municipal Bonds in Puerto Rico

      23,549,848  
   

 

 

 

Total Municipal Bonds — 131.7%
(Cost: $472,432,701)

      519,033,214  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(i)

 

New Jersey — 24.9%

   
County/City/Special District/School District — 7.9%            

Hudson County Improvement Authority, RB, 5.25%, 05/01/51

    2,560       3,056,359  

Union County Utilities Authority, Refunding RB

   

Series A, 5.00%, 06/15/41

    6,981       7,104,917  

Series A, AMT, 5.25%, 12/01/31

    20,310       21,108,792  
   

 

 

 
      31,270,068  
Education — 7.8%            

New Jersey Economic Development Authority, Refunding RB(j)

   

AMT, 3.00%, 08/01/41

    7,879       8,098,171  

AMT, 3.00%, 08/01/43

    11,331       11,646,808  

Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/23(c)

    10,000       11,082,100  
   

 

 

 
      30,827,079  
Health — 1.6%            

New Jersey Health Care Facilities Financing Authority, RB, 4.00%, 07/01/47

    5,555       6,207,156  
State — 3.9%            

Garden State Preservation Trust, RB, Series A, 5.75%, 11/01/28

    5,460       6,849,242  

New Jersey Economic Development Authority, Refunding RB, Series NN, 5.00%, 03/01/29(j)

    8,017       8,728,723  
   

 

 

 
      15,577,965  
 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

  37


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Transportation — 3.7%            

New Jersey Turnpike Authority, RB, Series A, 5.00%, 07/01/22(c)(j)

  $ 13,520     $ 14,445,444  
   

 

 

 

Total Municipal Bonds in New Jersey

      98,327,712  

New York — 4.3%

   
Transportation — 4.3%            

Port Authority of New York & New Jersey, Refunding ARB, AMT, Consolidated, 169th Series, 5.00%, 10/15/41

    16,255       16,772,416  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 29.2%
(Cost: $109,356,858)

 

    115,100,128  
   

 

 

 

Total Long-Term Investments — 160.9%
(Cost: $581,789,559)

 

    634,133,342  
   

 

 

 
     Shares         
Short-Term Securities            
Money Market Funds — 2.6%            

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.01%(k)(l)

    10,309,166       10,311,228  
   

 

 

 

Total Short-Term Securities — 2.6%
(Cost: $10,311,228)

 

    10,311,228  
   

 

 

 

Total Investments — 163.5%
(Cost: $592,100,787)

 

    644,444,570  

Liabilities in Excess of Other Assets — (1.8)%

 

    (7,306,595

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (16.1)%.

 

    (63,390,837

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (45.6)%

 

    (179,703,018
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 394,044,120  
   

 

 

 

 

(a) 

Security is collateralized by municipal bonds or U.S. Treasury obligations.

(b) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(c) 

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.

(d) 

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.

(e) 

Issuer filed for bankruptcy and/or is in default.

(f) 

Non-income producing security.

(g) 

Zero-coupon bond.

(h) 

When-issued security.

(i) 

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. See Note 4 of the Notes to Financial Statements for details.

(j)

All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between January 1, 2022 to February 1, 2037, is $25,936,359.

  

See Note 4 of the Notes to Financial Statements for details.

(k) 

Affiliate of the Fund.

(l) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six-months ended January 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
07/31/20
     Purchases
at Cost
     Proceeds
from
Sales
     Net
Realized
Gain
(Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
01/31/21
     Shares
Held at
01/31/21
     Income      Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

   $ 4,006,566      $ 6,304,787 (a)     $      $ 2,202      $ (2,327    $ 10,311,228        10,309,166      $ 151      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

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.

 

 

38  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2021

   BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note.

     64          03/22/21        $ 8,770        $ 67,911  

Long U.S. Treasury Bond

     18          03/22/21          3,037          108,348  
                 

 

 

 
                  $ 176,259  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 176,259      $      $ 176,259  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the six months ended January 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from

 

           

Futures contracts

   $      $      $      $      $ 308,134      $      $ 308,134  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $      $      $ 176,259      $      $ 176,259  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts

        

Average notional value of contracts — short.

   $ 18,181,719  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Municipal Bonds

   $        $ 519,033,214        $             —        $ 519,033,214  

Municipal Bonds Transferred to Tender Option Bond Trusts.

              115,100,128                   115,100,128  

Short-Term Securities

                 

Money Market Funds

     10,311,228                            10,311,228  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 10,311,228        $ 634,133,342        $        $ 644,444,570  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

  39


Schedule of Investments  (unaudited) (continued)

January 31, 2021

  

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Fair Value Hierarchy as of Period End (continued)

      Level 1        Level 2        Level 3        Total  

Derivative Financial Instruments(a)

                 

Assets

                 

Interest Rate Contracts.

   $  176,259        $  —        $        $  176,259  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement 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

   $             —        $ (63,363,289      $             —        $ (63,363,289

VRDP Shares at Liquidation Value

              (180,000,000                 (180,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (243,363,289      $        $ (243,363,289
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

40  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


 

Statements of Assets and Liabilities  (unaudited)

January 31, 2021

 

 

  MZA     MYC     MYF     MYJ  

ASSETS

       

Investments at value — unaffiliated(a)

  $  107,901,207     $ 558,047,972     $ 313,463,045     $ 634,133,342  

Investments at value — affiliated(b)

    2,396,255             4,022,557       10,311,228  

Cash

          150,177             33,750  

Cash pledged for futures contracts

          378,000       89,000       154,000  

Receivables:

       

Investments sold

          3,919,359       611,737        

Dividends — affiliated

    19       28       44       72  

Interest — unaffiliated

    719,953       6,081,694       2,733,900       4,742,417  

Variation margin on futures contracts

          72,803       17,287       29,182  
Prepaid expenses   52,114     55,842     36,376     62,137  
 

 

 

   

 

 

   

 

 

   

 

 

 
Total assets   111,069,548     568,705,875     320,973,946     649,466,128  
 

 

 

   

 

 

   

 

 

   

 

 

 

ACCRUED LIABILITIES

       

Bank overdraft

                16,687        

Payables:

       

Investments purchased

          1,971,825       2,953,536       10,510,230  

Income dividend distributions — Common Shares

    246,627       921,038       767,981       1,507,776  

Interest expense and fees

    340       41,014       19,955       27,548  

Investment advisory fees

    46,628       238,818       133,704       268,882  

Directors’ and Officer’s fees

    654       2,698       1,711       40,499  

Other accrued expenses

    78,517       165,916       94,095       766  

Reorganization costs

    166,232             190,961        
 

 

 

   

 

 

   

 

 

   

 

 

 

Total accrued liabilities

    538,998       3,341,309       4,178,630       12,355,701  
 

 

 

   

 

 

   

 

 

   

 

 

 

OTHER LIABILITIES

       

TOB Trust Certificates

    3,500,000       104,690,676       53,174,814       63,363,289  

VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)(e)

    37,131,157       105,672,458       59,164,736       179,703,018  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total other liabilities

    40,631,157       210,363,134       112,339,550       243,066,307  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    41,170,155       213,704,443       116,518,180       255,422,008  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 69,899,393     $  355,001,432     $  204,455,766     $  394,044,120  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

       

Paid-in capital(f)(g)(h)

  $ 60,892,556     $ 303,321,072     $ 183,788,704     $ 347,114,987  

Accumulated earnings

    9,006,837       51,680,360       20,667,062       46,929,133  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 69,899,393     $ 355,001,432     $ 204,455,766     $ 394,044,120  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value per Common Share.

  $ 15.07     $ 16.57     $ 14.91     $ 16.33  
 

 

 

   

 

 

   

 

 

   

 

 

 

(a) Investments at cost — unaffiliated

  $ 97,418,855     $ 508,373,160     $ 285,690,411     $ 581,789,559  

(b) Investments at cost — affiliated

  $ 2,396,017     $     $ 4,022,552     $ 10,311,228  

(c)  Preferred Shares outstanding

    373       1,059       594       1,800  

(d) Preferred Shares authorized

    1,985       8,059       1,000,000       5,782  

(e) Par value per Preferred Share

  $ 0.10     $ 0.10     $ 0.05     $ 0.10  

(f)  Common Shares outstanding

    4,639,840       21,419,494       13,713,952       24,124,417  

(g) Common Shares authorized

    199,998,015       199,991,941       Unlimited       199,994,218  

(h) Par value per Common Share

  $ 0.10     $ 0.10     $ 0.10     $ 0.10  

See notes to financial statements.

 

 

F I N A N C I A L  S T A T E M E N T S

  41


 

Statements of Operations  (unaudited)

Six Months Ended January 31, 2021

 

     MZA     MYC     MYF     MYJ  

INVESTMENT INCOME

       

Dividends — affiliated

  $ 68     $ 168     $ 96     $ 151  

Interest — unaffiliated.

    1,995,241       8,381,474       6,037,434       12,314,505  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    1,995,309       8,381,642       6,037,530       12,314,656  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory

    275,256       1,399,854       787,164       1,583,524  

Reorganization

    142,773             174,571        

Professional

    26,593       43,970       40,121       45,643  

Rating agency

    25,553       25,553       25,552       25,553  

Accounting services

    13,945       44,691       28,966       47,780  

Transfer agent

    11,190       16,743       15,108       19,019  

Registration

    3,963       4,081       4,080       4,080  

Directors and Officer

    2,647       10,368       6,258       15,200  

Printing and postage

    1,299       1,498       1,416       1,459  

Custodian

    625       25,327       3,655       2,628  

Liquidity fees

          434,983       243,984        

Remarketing fees on Preferred Shares

          27,186       15,250        

Miscellaneous

    6,298       8,989       8,633       7,223  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    510,142       2,043,243       1,354,758       1,752,109  

Interest expense, fees and amortization of offering costs(a)

    176,764       464,083       249,336       1,019,616  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    686,906       2,507,326       1,604,094       2,771,725  

Less:

       

Fees waived and/or reimbursed by the Manager

    (504     (499     (630     (1,192
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

    686,402       2,506,827       1,603,464       2,770,533  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    1,308,907       5,874,815       4,434,066       9,544,123  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain from:

       

Investments — unaffiliated.

    154,018       1,937,964       164,304       531,417  

Investments — affiliated

    457       27       33       2,202  

Futures contracts

          631,815       56,819       308,134  
 

 

 

   

 

 

   

 

 

   

 

 

 
    154,475       2,569,806       221,156       841,753  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated.

    976,585       4,247,261       5,085,902       8,966,552  

Investments — affiliated

    (499     (7     5       (2,327

Futures contracts

          36,675       45,396       176,259  
 

 

 

   

 

 

   

 

 

   

 

 

 
    976,086       4,283,929       5,131,303       9,140,484  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    1,130,561       6,853,735       5,352,459       9,982,237  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $  2,439,468     $  12,728,550     $  9,786,525     $  19,526,360  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Related to TOB Trusts and/or VRDP Shares.

See notes to financial statements.

 

 

42  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


 

Statements of Changes in Net Assets

 

    MZA           MYC  
    Six Months Ended                 Six Months Ended        
     01/31/21
(unaudited)
    Year Ended July 31,
07/31/20
           01/31/21
(unaudited)
    Year Ended July 31,
07/31/20
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

OPERATIONS

         

Net investment income

  $ 1,308,907     $ 2,654,504       $ 5,874,815     $ 10,937,847  

Net realized gain (loss)

    154,475       (1,691,934       2,569,806       605,727  

Net change in unrealized appreciation

    976,086       1,985,227         4,283,929       14,042,916  
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    2,439,468       2,947,797         12,728,550       25,586,490  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to Common Shareholders

    (1,472,057     (2,508,411       (5,526,229     (12,439,349
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Reinvestment of common distributions

    46,631                      
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

Total increase in net assets applicable to Common Shareholders

    1,014,042       439,386         7,202,321       13,147,141  

Beginning of period

    68,885,351       68,445,965         347,799,111       334,651,970  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $  69,899,393     $  68,885,351       $  355,001,432     $  347,799,111  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

F I N A N C I A L  S T A T E M E N T S

  43


 

Statements of Changes in Net Assets  (continued)

 

    MYF           MYJ  
    Six Months Ended                 Six Months Ended        
     01/31/21
(unaudited)
    Year Ended July 31,
07/31/20
           01/31/21
(unaudited)
    Year Ended July 31,
07/31/20
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

OPERATIONS

         

Net investment income

  $ 4,434,066     $ 9,010,115       $ 9,544,123     $ 17,787,271  

Net realized gain (loss)

    221,156       (2,683,442       841,753       (4,349,287

Net change in unrealized appreciation (depreciation)

    5,131,303       3,533,629         9,140,484       (370,388
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    9,786,525       9,860,302         19,526,360       13,067,596  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to Common Shareholders

    (4,618,996 )(b)      (9,241,727       (8,956,341     (17,538,784
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Reinvestment of common distributions

          24,480                

Redemption of shares resulting from share repurchase program (including transaction costs)

                  (453,828      
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase (decrease) in net assets derived from capital share transactions

          24,480         (453,828      
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

Total increase (decrease) in net assets applicable to Common Shareholders

    5,167,529       643,055         10,116,191       (4,471,188

Beginning of period

    199,288,237       198,645,182         383,927,929       388,399,117  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 204,455,766     $ 199,288,237       $ 394,044,120     $ 383,927,929  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(b) 

A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end.

See notes to financial statements.

 

 

44  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


 

Statements of Cash Flows  (unaudited)

Six Months Ended January 31, 2021

 

     MZA     MYC     MYF     MYJ  
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES                        

Net increase in net assets resulting from operations

  $ 2,439,468     $ 12,728,550     $ 9,786,525     $ 19,526,360  

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities

       

Proceeds from sales of long-term investments

    6,411,441       73,756,202       36,465,194       29,047,700  

Purchases of long-term investments

    (7,008,979     (80,048,735     (26,870,855     (17,837,675

Net proceeds from sales (purchases) of short-term securities.

    308,653       3,424,230       (3,791,606     (6,304,787

Amortization of premium and accretion of discount on investments and other fees

    304,006       2,839,508       357,515       1,009,239  

Net realized gain on investments

    (154,475     (1,937,991     (164,337     (533,619

Net unrealized appreciation on investments

    (976,086     (4,247,254     (5,085,907     (8,964,225

(Increase) Decrease in Assets

       

Receivables

       

Dividends — affiliated

    71       23       (21     254  

Interest — unaffiliated

    (36,171     (285,300     202,093       50,778  

Variation margin on futures contracts

          (72,803     (17,287     (29,182

Prepaid expenses

    (6,882     28,723       30,696       151,290  

Increase (Decrease) in Liabilities

       

Payables

       

Interest expense and fees

    (176     (75,577     (78,021     (60,575

Investment advisory fees

    785       4,957       434       4,174  

Directors’ and Officer’s fees

    88       487       257       4,284  

Other accrued expenses

    12,039       (5,113     (27,362     (145,906

Reorganization costs

    118,223             133,808        
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    1,412,005       6,109,907       10,941,126       15,918,110  
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

       

Cash dividends paid to Common Shareholders

    (1,415,267     (5,526,229     (4,618,996     (8,910,130

Repayments of TOB Trust Certificates

          (1,400,333     (7,351,354     (6,376,962

Repayments of Loan for TOB Trust Certificates

          (1,400,333     (504,145      

Net payments on redemption of Common Shares

                      (453,828

Proceeds from TOB Trust Certificates

          1,400,333       1,133,313        

Proceeds from Loan for TOB Trust Certificates

          1,400,333       504,145        

Decrease in bank overdraft

          (60,895     (19,281      

Amortization of deferred offering costs

    3,262       5,394       4,192       10,560  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

    (1,412,005     (5,581,730     (10,852,126     (15,730,360
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH

       

Net increase in restricted and unrestricted cash

          528,177       89,000       187,750  

Restricted and unrestricted cash at beginning of period

                       
 

 

 

   

 

 

   

 

 

   

 

 

 

Restricted and unrestricted cash at end of period

  $     $ 528,177     $ 89,000     $ 187,750  
 

 

 

   

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

       

Cash paid during the period for interest expense

  $ 173,678     $ 534,266     $ 323,165     $ 1,069,631  
 

 

 

   

 

 

   

 

 

   

 

 

 

NON-CASH FINANCING ACTIVITIES

       

Capital shares issued in reinvestment of distributions paid to Common Shareholders.

  $ 46,631     $     $     $  
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES

       

Cash

  $     $ 150,177     $     $ 33,750  

Cash pledged

       

Futures contracts

          378,000       89,000       154,000  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $     $ 528,177     $ 89,000     $ 187,750  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

F I N A N C I A L  S T A T E M E N T S

  45


Financial Highlights

(For a share outstanding throughout each period)

 

    MZA  
   

Six Months Ended
01/31/21

(unaudited)

    Year Ended July 31,  
    2020     2019      2018      2017      2016  

 

 

Net asset value, beginning of period

  $ 14.86     $ 14.76     $ 14.06      $ 14.56      $ 15.42      $ 14.72  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.28       0.57       0.56        0.66        0.72        0.77  

Net realized and unrealized gain (loss)

    0.25       0.07       0.72        (0.47      (0.84      0.75  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.53       0.64       1.28        0.19        (0.12      1.52  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.32     (0.54     (0.58      (0.69      (0.74      (0.82
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 15.07     $ 14.86     $ 14.76      $ 14.06      $ 14.56      $ 15.42  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 15.48     $ 14.34     $ 14.03      $ 14.45      $ 16.59      $ 17.68  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

              

Based on net asset value.

    3.62 %(d)       4.70     9.62      1.22      (0.72 )%       10.11
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    10.30 %(d)      6.29     1.38      (8.71 )%       (1.34 )%       9.96
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

              

Total expenses

    1.99 %(e)(f)      2.22 %(g)       2.63      2.28      2.00      1.64
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed

    1.99 %(e)(f)      2.22 %(g)       2.63      2.28      2.00      1.64
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering cost(h)

    1.48 %(e)(f)      1.13 %(g)       1.08      1.05      1.03      1.02
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.80 %(e)       3.91     3.96      4.62      4.94      5.15
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

              

Net assets applicable to Common Shareholders, end of period (000)

  $ 69,899     $ 68,885     $ 68,446      $ 65,153      $ 67,346      $ 71,133  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 37,300     $ 37,300     $ 37,300      $ 37,300      $ 37,300      $ 37,300  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $  287,398     $  284,679     $  283,501      $  274,673      $  280,553      $  290,705  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 3,500     $ 3,500     $ 3,500      $ 3,000      $ 3,000      $ 3,000  
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    6     13     25      20      9      13
 

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Includes non-recurring expenses of reorganization costs. Without these costs, total expenses, total expenses after fees waived and/or reimbursed and total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs would have been 1.58%, 1.58% and 1.07%, respectively.

(g) 

Includes non-recurring expenses of reorganization costs. Without these costs, total expenses, total expenses after fees waived and/or reimbursed and total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering costs would have been 2.15%, 2.15% and 1.06%, respectively.

(h) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

46  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MYC  
   

Six Months Ended
01/31/21

(unaudited)

    Year Ended July 31,  
    2020      2019      2018      2017      2016  

 

 

Net asset value, beginning of period.

  $ 16.24     $ 15.62      $ 15.11      $ 15.61      $ 17.07      $ 16.35  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.27       0.51        0.56        0.66        0.74        0.86  

Net realized and unrealized gain (loss)

    0.32       0.69        0.70        (0.41      (1.10      0.87  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.59       1.20        1.26        0.25        (0.36      1.73  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders(b)

               

From net investment income

    (0.26     (0.51      (0.60      (0.69      (0.80      (0.88

From net realized gain

          (0.07      (0.15      (0.06      (0.30      (0.13
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions to Common Shareholders

    (0.26     (0.58      (0.75      (0.75      (1.10      (1.01
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 16.57     $ 16.24      $ 15.62      $ 15.11      $ 15.61      $ 17.07  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 14.78     $ 14.46      $ 14.11      $ 13.19      $ 15.43      $ 17.43  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

               

Based on net asset value.

    3.88 %(d)       8.33      9.34      2.02      (1.83 )%       11.07
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    4.07 %(d)       6.78      13.15      (9.91 )%       (4.96 )%       19.86
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

               

Total expenses

    1.44 %(e)       2.11      2.64      2.26      2.08      1.55
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed

    1.44 %(e)       2.11      2.64      2.26      2.08      1.55
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering cost(f)(g)

    1.18 %(e)       1.17      0.98      0.94      0.96      0.92
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.38 %(e)       3.27      3.72      4.32      4.68      5.15
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

               

Net assets applicable to Common Shareholders, end of period (000)

  $ 355,001     $ 347,799      $ 334,652      $ 323,745      $ 334,456      $ 364,594  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 105,900     $  105,900      $  105,900      $  105,900      $  105,900      $ 105,900  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $ 435,223     $ 428,422      $ 416,008      $ 405,708      $  415,823      $  444,282  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $  104,691     $ 104,691      $ 122,165      $ 114,108      $ 122,501      $ 141,734  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    14     50      45      37      34      27
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

(g) 

The total expense ratio after fees waived and/or reimbursed and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees as follows:

 

     Six Months Ended
01/31/21
(unaudited)
     Year Ended July 31,  
      2020      2019      2018      2017      2016  

Expense ratios

    0.91      0.93      0.95      0.94      0.96      0.92
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

  47


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MYF  
   

Six Months Ended
01/31/21

(unaudited)

    Year Ended July 31,  
     2020     2019     2018     2017     2016  
   

Net asset value, beginning of period.

  $ 14.53     $ 14.49     $ 14.29     $ 14.94     $ 16.03     $ 15.61  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.32       0.66       0.73       0.83       0.87       0.92  

Net realized and unrealized gain (loss)

    0.40       0.05       0.24       (0.61     (1.02     0.47  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    0.72       0.71       0.97       0.22       (0.15     1.39  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.34 )(c)       (0.67     (0.77     (0.87     (0.94     (0.97

Net asset value, end of period

  $ 14.91     $ 14.53     $ 14.49     $ 14.29     $ 14.94     $ 16.03  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Market price, end of period

  $ 14.12     $ 13.79     $ 14.49     $ 13.69     $ 16.34     $ 17.02  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return Applicable to Common Shareholders(d)

           

Based on net asset value.

    5.15 %(e)       5.25     7.12     1.61     (0.88 )%      9.24
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Based on market price

    4.92 %(e)       (0.11 )%      11.81     (11.00 )%      2.10     23.41
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

           

Total expenses

    1.60 %(f)(g)      2.04 %(h)       2.56     2.33     1.97     1.53
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

    1.60 %(f)(g)      2.04 %(h)       2.56     2.32     1.97     1.53
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering cost(i)(j)

    1.35 %(f)(g)      1.19 %(h)       1.01     0.98     0.97     0.94
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income to Common Shareholders

    4.43 %(g)       4.59     5.18     5.72     5.76     5.86
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets applicable to Common Shareholders, end of period (000)

  $  204,456     $  199,288     $  198,645     $ 195,777     $  204,427     $  218,740  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 59,400     $ 59,400     $ 59,400     $ 59,400     $ 59,400     $ 59,400  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $ 444,202     $ 435,502     $ 434,419     $ 429,591     $ 444,154     $ 468,250  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

  $ 53,175     $ 59,393     $ 62,845     $ 81,012     $ 79,110     $ 77,759  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

    9     27     27     15     12     11
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end.

(d) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(e) 

Aggregate total return.

(f) 

Includes non-recurring expenses of reorganization costs. Without these costs, total expenses, total expenses after fees waived and/or reimbursed and total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs would have been 1.43%, 1.43% and 1.18%, respectively

(g) 

Annualized.

(h) 

Includes non-recurring expenses of reorganization costs. Without these costs, total expenses, total expenses after fees waived and/or reimbursed and total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering costs would have been 2.01%, 2.01% and 1.16%, respectively

(i) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

(j) 

The total expense ratio after fees waived and/or reimbursed and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees as follows:

 

      Six Months Ended
01/31/21
(unaudited)
     Year Ended July 31,  
      2020      2019      2018    2017      2016  
     

Expense ratios

     1.09      0.96      0.98    0.98%      0.97      0.94
  

 

 

    

 

 

    

 

 

    

 

  

 

 

    

 

 

 

See notes to financial statements.

 

 

48  

2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    MYJ  
    Six Months Ended
01/31/21
    Year Ended July 31,  
    (unaudited)     2020      2019      2018     2017      2016  

 

 

Net asset value, beginning of period.

  $ 15.89     $ 16.08      $ 15.57      $ 15.89     $ 16.93      $ 16.01  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Net investment income(a)

    0.40       0.74        0.72        0.77       0.81        0.89  

Net realized and unrealized gain (loss)

    0.41       (0.20      0.52        (0.21     (0.95      0.94  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.81       0.54        1.24        0.56       (0.14      1.83  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.37     (0.73      (0.73      (0.88     (0.90      (0.91
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Net asset value, end of period

  $ 16.33     $ 15.89      $ 16.08      $ 15.57     $ 15.89      $ 16.93  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Market price, end of period

  $ 14.51     $ 14.28      $ 15.08      $ 13.51     $ 16.58      $ 17.49  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

              

Based on net asset value.

    5.49 %(d)       3.83      8.78      3.94     (0.68 )%       11.95
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Based on market price

    4.29 %(d)       (0.50 )%       17.57      (13.57 )%      0.32      25.78
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

              

Total expenses

    1.43 %(e)       2.09      2.49      2.38 %(f)       1.93      1.55
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed

    1.43 %(e)       2.09      2.47      2.25 %(f)       1.93      1.55
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering cost(g)

    0.90 %(e)       0.92      0.91      0.94 %(f)       0.93      0.92
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.93 %(e)       4.67      4.65      4.93     5.11      5.43
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Supplemental Data

              

Net assets applicable to Common Shareholders, end of period (000)

  $  394,044     $  383,928      $  388,399      $  376,178     $  228,284      $  242,134  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 180,000     $ 180,000      $ 180,000      $ 180,000     $ 102,200      $ 102,200  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $ 318,913     $ 313,293      $ 315,777      $ 308,988     $ 323,370      $ 336,922  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 63,363     $ 69,740      $ 60,135      $ 70,288     $ 45,634      $ 40,642  
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Portfolio turnover rate

    4     14      14      11     6      10
 

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses, total expenses after fees waived and/or reimbursed and paid indirectly and total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees, and amortization of offering costs, would have been 2.26%, 2.25% and 0.94%, respectively, for the year ended July 31, 2018.

(g) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

  49


Notes to Financial Statements  (unaudited)

 

1.

ORGANIZATION

The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to herein collectively as the “Funds”, or individually as a “Fund”:

 

Fund Name   Herein Referred To As    Organized    Diversification
Classification

BlackRock MuniYield Arizona Fund, Inc

  MZA    Maryland    Diversified

BlackRock MuniYield California Fund, Inc

  MYC    Maryland    Non-diversified

BlackRock MuniYield Investment Fund

  MYF    Massachusetts    Diversified

BlackRock MuniYield New Jersey Fund, Inc

  MYJ    Maryland    Non-diversified

The Boards of Directors of the Funds are collectively referred to throughout this report as the “Board,” and the directors thereof are collectively referred to throughout this report as “Directors”. The Funds determine and make available for publication the net asset values (“NAVs”) of their Common Shares on a daily basis.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of non-index fixed-income mutual funds and all BlackRock-advised closed-end funds referred to as the BlackRock Fixed-Income Complex.

On June 16, 2020, the Boards of Directors of MZA and MYF (the “Target Funds”) and the Board of Directors of BlackRock MuniYield Quality Fund, Inc. (the “Acquiring Fund”), each approved the merger of the Target Funds into the Acquiring Fund. The reorganizations were approved by each Fund’s shareholders and are expected to occur during the second quarter of 2021, subject to the satisfaction of customary closing conditions.

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) or certain borrowings (e.g.,TOB Trust transactions) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowings to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions from net investment income are declared monthly and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Distributions to Preferred Shareholders are accrued and determined as described in Note 10.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Fund’s Board, the directors who are not “interested persons” of the Funds, as defined in the 1940 Act (“Independent Directors”), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Directors. This has the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund, as applicable. Deferred compensation liabilities, if any, are included in the Directors’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan.

Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of each Fund (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

 

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

If events (e.g., a market closure, market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of 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 each 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); and

 

   

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Global Valuation Committee’s assumptions used in determining the fair value of 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 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 that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Forward Commitments, When-Issued and Delayed Delivery Securities: Certain Funds 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. A Fund may purchase securities under such conditions 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, a Fund may be required to pay more at settlement than the security is worth. In addition, a Fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a Fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

Municipal Bonds Transferred to TOB Trusts: Certain Funds leverage their assets through the use of “TOB Trust” transactions. The funds transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a fund provide the fund with the right to cause the holders of a proportional share of the TOB Trust Certificates

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

to tender their certificates to the TOB Trust at par plus accrued interest. The funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a fund has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds ratably in proportion to their participation in the TOB Trust.

TOB Trusts are supported by a liquidity facility provided by a third party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

The TOB Trust may be collapsed without the consent of a fund, upon the occurrence of a termination event as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Funds) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.

While a fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a fund to borrow money for purposes of making investments. The funds’ management believes that a fund’s restrictions on borrowings do not apply to the funds’ TOB Trust transactions. Each fund’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a fund. A fund typically invests the cash received in additional municipal bonds.

Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a fund’s Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a fund’s payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a fund on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a fund incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of offering costs in the Statements of Operations. Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:

 

Fund Name   Interest Expense      Liquidity Fees      Other Expenses      Total  

MZA

  $ 2,607      $ 6,932      $ 2,999      $   12,538  

MYC

    75,099        225,076        69,304        369,479  

MYF

    41,804        107,067        38,508        187,379  

MYJ

    57,817        107,664        74,448        239,929  

For the six months ended January 31, 2021, the following table is a summary of each Fund’s TOB Trusts:

 

Fund Name   Underlying
Municipal Bonds
Transferred to
TOB Trusts(a)
     Liability for
TOB Trust
Certificates(b)
     Range of
Interest Rates
on TOB Trust
Certificates at
Period End
     Average
TOB Trust
Certificates
Outstanding
     Daily Weighted
Average Rate
of Interest and
Other Expenses
on TOB Trusts
 

MZA

  $ 8,002,390      $ 3,500,000        0.05% — 0.10%      $ 3,500,000        0.71

MYC

    253,784,029        104,690,676        0.05    — 0.19           104,667,844        0.70  

MYF

    92,672,779        53,174,814        0.05    — 0.27           54,259,425        0.68  

MYJ

    115,100,128        63,363,289        0.04    — 0.24           64,264,382        0.74  

 

  (a) 

The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the funds, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the funds, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts in the Schedules of Investments.

 
  (b) 

TOB Trusts may be structured on a non-recourse or recourse basis. When a Fund invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a fund invests in a TOB Trust on a recourse basis, a fund enters into a reimbursement agreement with the Liquidity Provider where a fund is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a fund invests in a recourse TOB Trust, a fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a fund at January 31, 2021, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a fund at January 31, 2021.

 

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

For the six months ended January 31, 2021, the following table is a summary of each Fund’s Loan for TOB Trust Certificates:

 

Fund Name   Loans
Outstanding
at Period End
     Range of
Interest Rates
on Loans at
Period End
     Average
Loans
Outstanding
     Daily Weighted
Average Rate
of Interest and
Other Expenses
on Loans
 

MYC

  $           $ 22,832        0.71

MYF

                  2,740        0.71  

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: Each Fund entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund pays the Manager a monthly fee at an annual rate equal to 0.50% of the average daily value of each Fund’s net assets.

For purposes of calculating these fees, “net assets” mean the total assets of the Fund minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is understood that the liquidation preference of any outstanding preferred stock (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Fund’s NAV.

Expense Waivers: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2022. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of a Fund. Prior to December 1, 2019, this waiver was voluntary. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended January 31, 2021, the amounts waived were as follows:

 

Fund Name   Amounts Waived  

MZA

  $ 504  

MYC

    499  

MYF

    630  

MYJ

    1,192  

The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2022. The agreement can be renewed for annual periods thereafter, and may be terminated on 90 days’ notice, each subject to approval by a majority of the Funds’ Independent Directors. For the six months ended January 31, 2021, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

Directors and Officers: Certain directors and/or officers of the Fund are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Directors and Officer in the Statements of Operations.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

7.

PURCHASES AND SALES

For the six months ended January 31, 2021, purchases and sales of investments, excluding short-term investments, were as follows:

 

Fund Name   Purchases      Sales  

MZA

  $ 7,008,979      $   6,411,441  

MYC

    82,020,560        77,675,561  

MYF

    27,415,730        36,430,331  

MYJ

    25,932,905        29,047,700  

 

8.

INCOME TAX INFORMATION

It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Each 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 each Fund’s U.S. federal tax returns generally remains open for a period of three fiscal years after they are filed. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of January 31, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of July 31, 2020, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

Fund Name   Non-Expiring  

MZA

  $ 1,785,178  

MYF

    6,700,967  

MYJ

    7,274,500  

As of January 31, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

Fund Name   Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
Depreciation
    Net Unrealized
Appreciation
(Depreciation)
 

MZA

  $ 96,331,483      $ 10,485,464      $ (19,485   $ 10,465,979  

MYC

    403,848,206        49,760,385        (214,620     49,545,765  

MYF

    235,856,843        28,610,478        (111,137     28,499,341  

MYJ

    529,106,357        54,790,877        (2,639,697     52,151,180  

 

9.

PRINCIPAL RISKS

In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments.

The Funds may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Funds reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Fund.

A Fund structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

Should short-term interest rates rise, the Funds’ investments in the TOB Trusts may adversely affect the Funds’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds’ NAVs per share.

The U.S. Securities and Exchange Commission (“SEC”) and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Funds’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Funds, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.

Each Fund may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. A Fund may not be able to readily dispose of such investments at prices that approximate those at which a Fund could sell such investments if they were more widely traded and, as a result of such illiquidity, a Fund may have to sell other investments or engage in borrowing transactions if necessary to raise funds to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting a Fund’s net asset value and ability to make dividend distributions. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in below investment grade public debt securities.

Market Risk: Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolio’s current earnings rate.

Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of municipal security issuers than for issuers of other securities.

An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within certain Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Fund invests a substantial amount of its assets in issuers located in a single state or limited number of states, except for MYF. This may subject each Fund to the risk that economic, political or social issues impacting a particular state or group of states

could have an adverse and disproportionate impact on the income from, or the value or liquidity of, the Funds’ respective portfolios. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Investment percentages in specific sectors are presented in the Schedules of Investments.

Certain Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021, and it is expected that LIBOR will cease to be published after that time. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations,

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

 

10.

CAPITAL SHARE TRANSACTIONS

Each Fund is authorized to issue 200 million shares (an unlimited number of shares for MYF), all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10. The par value for each Fund’s Preferred Shares outstanding is $0.10, except for MYF, which is $0.05. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders. MYF is authorized to issue 1 million Preferred Shares.

Common Shares

For the six months shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

Fund Name   Six Months Ended
01/31/21
     Year Ended
07/31/20
 

MZA

    3,220         

MYF

           1,685  

For the six months ended January 31, 2021 and the year ended July 31, 2020, shares issued and outstanding remained constant for MYC.

The Funds participate in an open market share repurchase program (the “Repurchase Program”). From December 1, 2019 through November 30, 2020, each Fund may repurchase up to 5% of its outstanding common shares under the Repurchase Program, based on common shares outstanding as of the close of business on November 30, 2019, subject to certain conditions. There is no assurance that the Funds will purchase shares in any particular amounts.

On September 28, 2020, each Fund announced a continuation of its open market share repurchase program. Commencing on December 1, 2020, each Fund may repurchase through November 30, 2021, up to 5% of its common shares outstanding as of the close of business on November 30, 2020, subject to certain conditions. There is no assurance that the Funds will purchase shares in any particular amounts. For the six months ended January 31, 2021, MZA, MYC and MYF did not repurchase any shares.

The total cost of the shares repurchased is reflected in MYJ’s Statements of Changes in Net Assets. For the periods shown, shares repurchased and cost, including transaction costs were as follows:

 

     MYJ  
     Shares      Amounts  

Six Months Ended January 31, 2021

    33,688      $  453,828  

Year Ended July 31, 2020

            

Preferred Shares

A Fund’s Preferred Shares rank prior to its Common Shares as to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of the Fund. The 1940 Act prohibits the declaration of any dividend on Common Shares or the repurchase of Common Shares if the Fund fails to maintain asset coverage of at least 200% of the liquidation preference of the Fund’s outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, a Fund is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with its Preferred Shares or repurchasing such shares if the Fund fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares’ governing instruments or comply with the basic maintenance amount requirement of the ratings agencies rating the Preferred Shares.

Holders of Preferred Shares have voting rights equal to the voting rights of holders of Common Shares (one vote per share) and vote together with holders of Common Shares (one vote per share) as a single class on certain matters. Holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members of the Board, (ii) elect the full Board if dividends on the Preferred Shares are not paid for a period of two years and (iii) a separate class vote to amend the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred Shares, voting as a separate class, to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’s sub-classification 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.

VRDP Shares

MZA, MYC, MYF and MYJ (for purposes of this section, each a “VRDP Fund”), have issued Series W-7 VRDP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The VRDP Shares include a liquidity feature and may be subject to a special rate period. As of period end, the VRDP Shares outstanding were as follows:

 

Fund Name   Issue
Date
     Shares
Issued
     Aggregate
Principal
     Maturity
Date
 

MZA

    05/19/11        373      $ 37,300,000        06/01/41  

MYC

    05/19/11        1,059        105,900,000        06/01/41  

MYF

    05/19/11        594        59,400,000        06/01/41  

MYJ

    04/21/11        1,022        102,200,000        05/01/41  
      06/11/18        778        77,800,000        05/01/41  

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

Redemption Terms: A VRDP Fund is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, a VRDP Fund is required to begin to segregate liquid assets with the Fund’s custodian to fund the redemption. In addition, a VRDP Fund is required to redeem certain of its outstanding VRDP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the VRDP Shares may also be redeemed, in whole or in part, at any time at the option of a VRDP Fund. The redemption price per VRDP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends.

Liquidity Feature: VRDP Shares are subject to a fee agreement between the VRDP Fund and the liquidity provider that requires a per annum liquidity fee and, in some cases, an upfront or initial commitment fee, payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations. As of period end, the fee agreement is set to expire, unless renewed or terminated in advance, as follows:

 

    

 

MZA

    

 

MYC

    

 

MYF

    

 

MYJ

 

 

Expiration date

 

 

 

 

07/02/21

 

 

  

 

 

 

07/02/21

 

 

  

 

 

 

07/02/21

 

 

  

 

 

 

07/02/21

 

 

The VRDP Shares are also subject to a purchase agreement in connection with the liquidity feature. In the event a purchase agreement is not renewed or is terminated in advance, and the VRDP Shares do not become subject to a purchase agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the purchase agreement. In the event of such mandatory purchase, a VRDP Fund is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, the VRDP Fund is required to begin to segregate liquid assets with its custodian to fund the redemption. There is no assurance that a VRDP Fund will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Remarketing: A VRDP Fund may incur remarketing fees on the aggregate principal amount of all its VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. During any special rate period (as described below), a VRDP Fund may incur nominal or no remarketing fees.

Ratings: As of period end, the VRDP Shares were assigned the following ratings:

 

 

Fund Name

 

 

Moody’s Investors
Service, Inc.
Long-Term
Ratings

    

 

Fitch Ratings, Inc.
Long-Term
Ratings

    

 

Fitch Ratings, Inc.
Short-Term
Ratings

    

 

S&P Global
Short-Term
Ratings

 

 

MZA

 

 

 

 

Aa2

 

 

  

 

 

 

AAA

 

 

  

 

 

 

N/A

 

 

  

 

 

 

N/A

 

 

 

MYC

 

 

 

 

Aa2

 

 

  

 

 

 

AAA

 

 

  

 

 

 

F1+

 

 

  

 

 

 

A-1+

 

 

 

MYF

 

 

 

 

Aa1

 

 

  

 

 

 

AAA

 

 

  

 

 

 

F1+

 

 

  

 

 

 

A-1+

 

 

 

MYJ

 

 

 

 

Aa2

 

 

  

 

 

 

AAA

 

 

  

 

 

 

N/A

 

 

  

 

 

 

N/A

 

 

Any short-term ratings on VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s Investors Service, Inc., Fitch Ratings, Inc. and S&P Global Ratings. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories.

Special Rate Period: A VRDP Fund has commenced a “special rate period” with respect to its VRDP Shares, during which the VRDP Shares will not be subject to any remarketing and the dividend rate will be based on a predetermined methodology. During a special rate period, short-term ratings on VRDP Shares are withdrawn. As of period end, the following VRDP Funds have commenced or are set to commence a special rate period:

 

 

Fund Name

 

 

Commencement
Date

    

 

Expiration Date as
of Period Ended
01/31/21

 

 

MZA

 

 

 

 

06/21/12

 

* 

  

 

 

 

06/17/21

 

 

 

MYJ

 

 

 

 

06/21/12

 

* 

  

 

 

 

06/17/21

 

 

 

  *

Issuance date of VRDP Shares.

 

Prior to the expiration date, the VRDP Fund and the VRDP Shares holder may mutually agree to extend the special rate period. If a special rate period is not extended, the VRDP Shares will revert to remarketable securities upon the termination of the special rate period and will be remarketed and available for purchase by qualified institutional investors.

During the special rate period: (i) the liquidity and fee agreements remain in effect, (ii) VRDP Shares remain subject to mandatory redemption by the VRDP Fund on the maturity date, (iii) VRDP Shares will not be remarketed or subject to optional or mandatory tender events, (iv) the VRDP Fund is required to comply with the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares as is required when the VRDP Shares are not in a special rate period, (v) the VRDP Fund will pay dividends monthly based on the sum of an agreed upon reference rate and a percentage per annum based on the long-term ratings assigned to the VRDP Shares and (vi) the VRDP Fund will pay nominal or no fees to the liquidity provider and remarketing agent.

Dividends: Except during the Special Rate Period as described above, dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly based upon either short-term rating. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

  57


Notes to Financial Statements  (unaudited) (continued)

 

For the six months ended January 31, 2021, the annualized dividend rate for the VRDP Shares were as follows:

 

    

 

MZA

   

 

MYC

   

 

MYF

   

 

MYJ

 

 

Dividend rates

 

 

 

 

0.86

 

 

 

 

 

0.17

 

 

 

 

 

0.19

 

 

 

 

 

0.86

 

For the six months ended January 31, 2021, VRDP Shares issued and outstanding of each VRDP Fund remained constant.

Offering Costs: The Funds incurred costs in connection with the issuance of VRDP Shares, which were recorded as a direct deduction from the carrying value of the related debt liability and will be amortized over the life of the VRDP Shares with the exception of any upfront fees paid by a VRDP Fund to the liquidity provider which, if any, were amortized over the life of the liquidity agreement. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

Financial Reporting: The VRDP Shares are considered debt of the issuer; therefore, the liquidation preference, which approximates fair value of the VRDP Shares, is recorded as a liability in the Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP Shares are generally classified as tax-exempt income for tax-reporting purposes. Dividends and amortization of deferred offering costs on VRDP Shares are included in interest expense, fees and amortization of offering costs in the Statements of Operations:

 

 

Fund Name

 

 

Dividends Accrued

    

 

Deferred Offering
Costs Amortization

 

 

MZA

 

 

$

 

160,964

 

 

  

 

$

 

3,262

 

 

 

MYC

 

 

 

 

89,210

 

 

  

 

 

 

5,394

 

 

 

MYF

 

 

 

 

57,765

 

 

  

 

 

 

4,192

 

 

 

MYJ

 

 

 

 

769,127

 

 

  

 

 

 

10,560

 

 

 

11.

SUBSEQUENT EVENTS

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

The Funds declared and paid or will pay distributions to Common Shareholders and Preferred Shareholders as follows:

 

     

 

Dividend Per Common Share

    

 

Preferred Shares(a)

 

 

Fund Name

  

 

Paid(b)

    

 

Declared(c)

    

 

Declared(d)

    

 

Shares

    

 

Series

    

 

Declared

 

 

MZA

  

 

$

 

 0.053000

 

 

  

 

$

 

 0.053000

 

 

  

 

$

 

 0.116003

 

 

  

 

 

 

VRDP

 

 

  

 

 

 

W-7

 

 

  

 

$

 

 22,349

 

 

 

MYC

  

 

 

 

0.043000

 

 

  

 

 

 

0.043000

 

 

  

 

 

 

 

 

  

 

 

 

VRDP

 

 

  

 

 

 

W-7

 

 

  

 

 

 

8,211

 

 

 

MYF

  

 

 

 

0.056000

 

 

  

 

 

 

0.056000

 

 

  

 

 

 

0.056000

 

 

  

 

 

 

VRDP

 

 

  

 

 

 

W-7

 

 

  

 

 

 

5,517

 

 

 

MYJ

  

 

 

 

0.062500

 

 

  

 

 

 

0.062500

 

 

  

 

 

 

 

 

  

 

 

 

VRDP

 

 

  

 

 

 

W-7

 

 

  

 

 

 

107,852

 

 

 

  (a) 

Dividends declared for period February 1, 2021 to February 28, 2021.

 
  (b) 

Net investment income dividend paid on March 1, 2021 to Common Shareholders of record on February 16, 2021.

 
  (c) 

Net investment income dividend declared on March 1, 2021, payable to Common Shareholders of record on March 15, 2021.

 
  (d) 

Net investment income special dividend declared on March 19, 2021, payable to Common Shareholders of record on April 8, 2021.

 

 

 

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2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Additional Information

 

Proxy Results

At a Joint Special Meeting of Shareholders of BlackRock MuniYield Arizona Fund, Inc. held on Tuesday, December 15, 2020 and adjourned to Friday, January 21, 2021 and further adjourned to Friday, February 12, 2021, Fund shareholders were asked to vote on the following proposals:

Common and Preferred Shareholders

Proposal 1(E). The common shareholders and holders of Variable Rate Demand Preferred Shares (“VRDP Shares” and the holders thereof, “VRDP Holders”) of BlackRock MuniYield Arizona Fund, Inc. (“MZA”) were being asked to vote as a single class on a proposal to approve an Agreement and Plan of Reorganization between MZA and BlackRock MuniYield Quality Fund, Inc. (the “Acquiring Fund” and such Agreement and Plan of Reorganization, the “MZA Reorganization Agreement”) and the transactions contemplated therein, including (i) the acquisition by the Acquiring Fund of substantially all of MZA’s assets and the assumption by the Acquiring Fund of substantially all of MZA’s liabilities in exchange solely for newly issued common shares and VRDP Shares of the Acquiring Fund, which will be distributed to the common shareholders (although cash may be distributed in lieu of fractional common shares) and VRDP Holders, respectively, of MZA, and which shall constitute the sole consideration to be distributed or paid to the common shareholders (although cash may be distributed in lieu of fractional common shares) and the VRDP Holders in respect of their common shares and VRDP Shares, respectively, and (ii) the termination by MZA of its registration under the Investment Company Act of 1940, as amended, and the liquidation, dissolution and termination of MZA in accordance with its charter and Maryland law (the “MZA Reorganization”).

With respect to Proposal 1(E), the shares of the Fund were voted as follows:

 

 

Fund Name

 

 

For

    

 

Against

    

 

Abstain

 

 

MZA

 

 

 

 

2,474,339

 

 

  

 

 

 

636,557

 

 

  

 

 

 

283,296

 

 

 

 

Preferred Shareholders

Proposal 1(F). The VRDP Holders of MZA were being asked to vote as a separate class on a proposal to approve the MZA Reorganization Agreement and the MZA Reorganization.

With respect to Proposal 1(F), the shares of the Fund were voted as follows:

 

 

Fund Name

 

 

For

    

 

Against

    

 

Abstain

 

 

MZA

 

 

 

 

373

 

 

  

 

 

 

 

 

  

 

 

 

 

 

 

 

At a Joint Special Meeting of Shareholders of BlackRock MuniYield Investment Fund held on Tuesday, December 15, 2020 and adjourned to Friday, January 21, 2021, Fund shareholders were asked to vote on the following proposals:

Common and Preferred Shareholders

Proposal 1(G). The common shareholders and holders of Variable Rate Demand Preferred Shares (“VRDP Shares” and the holders thereof, “VRDP Holders”) of BlackRock MuniYield Investment Fund (“MYF”) were being asked to vote as a single class on a proposal to approve an Agreement and Plan of Reorganization between MYF and BlackRock MuniYield Quality Fund, Inc. (the “Acquiring Fund” and such Agreement and Plan of Reorganization, the “MYF Reorganization Agreement”) and the transactions contemplated therein, including (i) the acquisition by the Acquiring Fund of substantially all of MYF’s assets and the assumption by the Acquiring Fund of substantially all of MYF’s liabilities in exchange solely for newly issued common shares and VRDP Shares of the Acquiring Fund, which will be distributed to the common shareholders (although cash may be distributed in lieu of fractional common shares) and VRDP Holders, respectively, of MYF, and which shall constitute the sole consideration to be distributed or paid to the common shareholders (although cash may be distributed in lieu of fractional common shares) and the VRDP Holders in respect of their common shares and VRDP Shares, respectively, and (ii) the termination by MYF of its registration under the Investment Company Act of 1940, as amended, and the liquidation, dissolution and termination of MYF in accordance with its Declaration of Trust and Massachusetts law (the “MYF Reorganization”).

With respect to Proposal 1(G), the shares of the Fund were voted as follows:

 

 

Fund Name

 

 

For

    

 

Against

    

 

Abstain

 

 

MYF

 

 

 

 

7,513,352

 

 

  

 

 

 

435,009

 

 

  

 

 

 

416,045

 

 

 

 

Preferred Shareholders

Proposal 1(H). The VRDP holders of MYF were being asked to vote as a separate class on a proposal to approve the MYF Reorganization Agreement and the MYF Reorganization.

With respect to Proposal 1(H), the shares of the Fund were voted as follows:

 

 

Fund Name

 

 

For

    

 

Against

    

 

Abstain

 

 

MYF

 

 

 

 

594

 

 

  

 

 

 

 

 

  

 

 

 

 

 

 

 

 

A D D I T I O N A L  I N F O R M A T I O N

  59


Additional Information  (continued)

 

Fund Certification

The Funds are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Funds filed with the SEC the certification of its chief executive officer and chief financial officer required by Section 302 of the Sarbanes-Oxley Act.

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by the third quarter of 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities so that a failure to comply with the limits would result in a statutory violation and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Environmental, Social and Governance (“ESG”) Integration

Although a Fund does not seek to implement a specific ESG, impact or sustainability strategy unless otherwise disclosed, Fund management will consider ESG characteristics as part of the investment process for actively managed Funds. These considerations will vary depending on a Fund’s particular investment strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock research across the ESG risks and opportunities regarding an issuer. Fund management will consider those ESG characteristics it deems relevant or additive when making investment decisions for a Fund. The ESG characteristics utilized in a Fund’s investment process are anticipated to evolve over time and one or more characteristics may not be relevant with respect to all issuers that are eligible for investment. ESG characteristics are not the sole considerations when making investment decisions for a Fund. Further, investors can differ in their views of what constitutes positive or negative ESG characteristics. As a result, a Fund may invest in issuers that do not reflect the beliefs and values with respect to ESG of any particular investor. ESG considerations may affect a Fund’s exposure to certain companies or industries and a Fund may forego certain investment opportunities. While Fund management views ESG considerations as having the potential to contribute to a Fund’s long-term performance, there is no guarantee that such results will be achieved.

Dividend Policy

Each 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 distributions, the Funds may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the distributions paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed as accumulated earnings (loss) in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

The Funds do not make available copies of their Statements of Additional Information because the Funds’ shares are not continuously offered, which means that the Statement of Additional Information of each Fund has not been updated after completion of the respective Fund’s offerings and the information contained in each Fund’s Statement of Additional Information may have become outdated.

The following information is a summary of certain changes since July 31, 2020. This information may not reflect all of the changes that have occurred since you purchased the relevant Fund.

Effective October 19, 2020, each of MYC and MYJ has elected to be subject to the Maryland Control Share Acquisition Act (the “MCSAA”). In general, the MCSAA limits the ability of holders of “control shares” to vote those shares above various threshold levels that start at 10% unless the other stockholders of MYC and MYJ, as applicable, reinstate those voting rights at a meeting of stockholders as provided in the MCSAA. “Control shares” are generally defined in the MCSAA as shares of stock that, if aggregated with all other shares of stock that are either (i) owned by a person or (ii) as to which that person is entitled to exercise or direct the exercise of voting power, except solely by virtue of a revocable proxy, would entitle that person to exercise voting power in electing directors above various thresholds of voting power starting at 10%. MYC’s and MYJ’s Bylaws also provide that the provisions of the MCSAA shall not apply to the voting rights of the holders of any shares of preferred stock of MYC and MYJ, but the MCSAA would apply to any common stock held by the same holder.

Except if noted otherwise herein, there were no changes to the Funds’ charters or by-laws that would delay or prevent a change of control of the Funds that were not approved by the shareholders. Except if noted otherwise herein, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolios.

In accordance with Section 23(c) of the Investment Company Act of 1940, each Fund may from time to time purchase shares of its common stock in the open market or in private transactions.

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

 

 

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2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Additional Information  (continued)

 

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:

Please contact your financial adviser. Please note that not all investment advisers, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, annual and semi-annual reports, Rule 30e-3 notices and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and 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 call the Funds at (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at blackrock.com/fundreports.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 882-0052; (2) at blackrock.com; and (3) on the SEC’s website at sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at blackrock.com; or by calling (800) 882-0052 and (2) on the SEC’s website at sec.gov.

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

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.

 

 

A D D I T I O N A L  I N F O R M A T I O N

  61


Additional Information  (continued)

 

Fund and Service Providers

 

Investment Adviser
BlackRock Advisors, LLC
Wilmington, DE 19809
Accounting Agent and Custodian
State Street Bank and Trust Company
Boston, MA 02111
Transfer Agent
Computershare Trust Company, N.A.
Canton, MA 02021
VRDP Liquidity Provider
The Toronto-Dominion Bank(a)
New York, NY 10019
Wells Fargo Bank, N.A.(b)
San Francisco, CA 94104
(a) For MYC and MYF.
(b) For MZA and MYJ.
VRDP Remarketing Agent
TD Securities (USA) LLC(a)
New York, NY 10019
Wells Fargo Securities, LLC(b)
Charlotte, NC 28202
VRDPTender and Paying Agent
The Bank of New York Mellon
New York, NY 10286
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116
Legal Counsel
Willkie Farr & Gallagher LLP
New York, NY 10019
Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809
 

 

 

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2021  B L A C K R O C K  S E M I - A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Glossary of Terms Used in this Report  

 

Portfolio Abbreviation

AGM   Assured Guaranty Municipal Corp.
AMBAC   AMBAC Assurance Corp.
AMT   Alternative Minimum Tax
ARB   Airport Revenue Bonds
BAM   Build America Mutual Assurance Co.
BHAC   Berkshire Hathaway Assurance Corp.
CAB   Capital Appreciation Bonds
COP   Certificates of Participation
FHA   Federal Housing Administration
FHLMC   Federal Home Loan Mortgage Corp.
FNMA   Federal National Mortgage Association
GNMA   Government National Mortgage Association
GO   General Obligation Bonds
GTD   GTD Guaranteed
M/F   Multi-Family
NPFGC   National Public Finance Guarantee Corp.
RB   Revenue Bond
S/F   Single-Family
SAB   Special Assessment Bonds
SAW   State Aid Withholding
SONYMA   State of New York Mortgage Agency
ST   Special Tax
TA   Tax Allocation

 

 

G L O S S A R Y  O F  T E R M S  U S E D  I N  T H I S  R E P O R T

  63


 

Want to know more?

blackrock.com | 800-882-0052

This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

MY5-01/21-SAR

 

 

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(b) Not Applicable

 

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 Registrant – 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

(a) Not Applicable to this semi-annual report.

(b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.

 

Item 10 –

Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

 

Item 11 –

Controls and Procedures

(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.

(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 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 –

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

 

Item 13 –

Exhibits attached hereto

 

2


(a)(1) Code of Ethics – Not Applicable to this semi-annual report

(a)(2) Section 302 Certifications are attached

(a)(3) Not Applicable

(a)(4) Not Applicable

(b) Section 906 Certifications are attached

 

3


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 MuniYield Arizona Fund, Inc.

 

  By:     

/s/ John M. Perlowski                            

       John M. Perlowski
       Chief Executive Officer (principal executive officer) of
       BlackRock MuniYield Arizona Fund, Inc.

Date: April 5, 2021

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 MuniYield Arizona Fund, Inc.

Date: April 5, 2021

 

  By:     

/s/ Trent Walker                            

       Trent Walker
       Chief Financial Officer (principal financial officer) of
       BlackRock MuniYield Arizona Fund, Inc.

Date: April 5, 2021

 

4

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