BTA BlackRock Long Term Municipal Advantage Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR/A

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21835

 

Name of Fund:

BlackRock Long-Term Municipal Advantage Trust (BTA)

 

Fund Address:

100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Long-Term Municipal Advantage Trust, 50 Hudson Yards, New York, NY 10001

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

Date of fiscal year end: 07/31/2024

Date of reporting period: 01/31/2024

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Item 1 – Report to Stockholders

Explanatory Note: The Registrant is filing this amendment to its Form N-CSRS for the period ended January 31, 2024, filed with the Securities and Exchange Commission on April 3, 2024 (Accession Number 0001193125-24-085792). The sole purpose of this amendment is to revise the 6-month, 1 year and 5 years average annual total returns for the Customized Reference Benchmark in the section entitled “Fund Summary” for BlackRock Long-Term Municipal Advantage Trust (BTA), which were inadvertently understated in the original filing. Except for such change, this amendment does not amend, update or change any other items or disclosures found in the original Form N-CSRS filing.

(a) The Report to Shareholders is attached herewith.

 

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		JANUARY 31, 2024

 

		2024 Semi-Annual Report (Unaudited)

 

BlackRock Long-Term Municipal Advantage Trust (BTA)

BlackRock MuniAssets Fund, Inc. (MUA)

BlackRock Municipal Income Fund, Inc. (MUI)

BlackRock MuniYield Fund, Inc. (MYD)

BlackRock MuniYield Quality Fund, Inc. (MQY)

BlackRock MuniYield Quality Fund III, Inc. (MYI)

 

 

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

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2		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

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Table of Contents

 

		Page
The Markets in Review			2
Semi-Annual Report:
Municipal Market Overview			4
The Benefits and Risks of Leveraging			5
Derivative Financial Instruments			5
Fund Summary			6
Financial Statements:
Schedules of Investments			18
Statements of Assets and Liabilities			72
Statements of Operations			74
Statements of Changes in Net Assets			76
Statements of Cash Flows			79
Financial Highlights			81
Notes to Financial Statements			92
Additional Information			103
Glossary of Terms Used in this Report			106

 

 

		3

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Municipal Market Overview For the Reporting Period Ended January 31, 2024

 

Municipal Market Conditions

Municipals struggled at the start of the period as the Fed continued its tightening policy, raising fed fund rates to 5.25%—5.50%, before pausing in September. Subsequently, falling inflation, weakening economic growth, and the prolonged Fed pause led to more dovish expectations for monetary policy, causing a strong interest rate rally into year-end. As a result, municipals posted their strongest performance since the mid-1980s during the fourth quarter of 2023 before taking a step back to reassess macro expectations at the end of the period. Lower-rated credits and the long-end of the curve performed best.

 

During the 12-months ended January 31, 2024, municipal bond funds experienced net outflows totaling $20 billion (based on data from the Investment Company Institute), as demand shifted from funds to individual bonds and ETFs. At the same time, the market contended with just $368 billion in issuance, a small increase from the $347 billion issued during the prior 12-month period, as issuers shied away from rising rates and volatility.				Bloomberg Municipal Bond Index Total Returns as of January 31, 2024 6 months: 2.70% 12 months: 2.90%

 

A Closer Look at Yields		From January 31, 2023, to January 31, 2024, yields on AAA-rated 30-year municipal bonds increased by 32 basis points (bps) from 3.20% to 3.52%, ten-year yields increased by 19 bps from 2.19% to 2.38%, five-year yields increased by 31 bps from 2.05% to 2.36%, and two-year yields increased by 47 bps from 2.17% to 2.64% (as measured by Refinitiv Municipal Market Data). As a result, the municipal yield curve flattened over the 12-month period with the spread between two- and 30-year maturities flattening by 15 bps to a slope of 88 bps. Still, the curve remained relatively steep compared to the inverted U.S. Treasury curve.   Outperformance throughout the period pushed relative valuations to extremely rich levels. Municipal-to-Treasury ratios ended well through their 5-year averages across the curve, with intermediate maturities approaching all-time lows.

Financial Conditions of Municipal Issuers

With reserves at nearly an all-time high and debt service burden at a 50-year low, states are well-positioned to weather a potential economic slowdown. However, tax receipts are diverging for the states that primarily rely on consumption taxes, compared to their peers that depend on income taxes. State median revenues declined by a slight 1% for the rolling 12-months ending September 2023. States with regimes that favor sales taxes, such as Florida, Nevada, Texas, Tennessee, and Washington, all experienced positive revenue growth, while states that depend on personal income taxes, such as California and New York, experienced much greater declines in receipts, by 23% and 16%, respectively. Particularly in California’s case, the rating agencies have been patient, but the risk of downgrades has increased significantly. Meanwhile spreads remain surprisingly tight, reflecting investor indifference. Personal income tax collections should improve this April, due to a rebound in the financial markets, which should alleviate the strain on New York’s budget, but California will need to enact significant corrective action to address its reported $68 billion deficit. No sector is immune to an economic contraction; however, most municipal issuers are ultra-defensive since they provide essential services and can raise user fees or taxes to cover operations. Across all muni sectors, we anticipate borrowing to increase modestly in 2024 due to various potential factors: revenue shortfalls, aversion to fee increases, reluctance to cut programs, no future federal stimulus, preference to maintain liquidity, and deferral of capital expenditures. Patient investors will have better options in 2024 to buy solid credits in the primary market or discounted names in the secondary market.

The opinions expressed are those of BlackRock as of January 31, 2024 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 Bloomberg 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.

 

 

4		2 0 2 4  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

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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. In such circumstance, the investment adviser may nevertheless determine to maintain a Fund’s leverage if it deems such action to be appropriate. 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 amount 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 borrow money (including through the use of TOB Trusts) or issue debt securities 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.

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. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Funds must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. 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.

 

 

T H E B E N E F I T S  A N D R I S K S  O F L E V E R A G I N G / D E R I V A T I V E F I N A N C I A L I N S T R U M E N T S		5

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Fund Summary as of January 31, 2024		BlackRock Long-Term Municipal Advantage Trust (BTA)

 

Investment Objective

BlackRock Long-Term Municipal Advantage Trust’s (BTA) (the “Fund”) investment objective is to provide current income exempt from regular U.S. federal income tax. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal obligations and derivative instruments with exposure to such municipal obligations, in each case that are expected to pay interest or income that is exempt from U.S. federal income tax (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment and, under normal market conditions, the Fund’s municipal bond portfolio will have a dollar-weighted average maturity of greater than 10 years. The Fund may invest directly in such 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		BTA
Initial Offering Date		February 28, 2006
Yield on Closing Market Price as of January 31, 2024 ($ 10.34)(a)		5.05%
Tax Equivalent Yield(b)		8.53%
Current Monthly Distribution per Common Share(c)		$0.043500
Current Annualized Distribution per Common Share(c)		$0.522000
Leverage as of January 31, 2024(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 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

 

		01/31/24				07/31/23				Change				High				Low
Closing Market Price		$	10.34			$	9.71				6.49	%		$	10.58			$	8.65
Net Asset Value			10.43				10.36				0.68				10.59				9.03

Performance

Returns for the period ended January 31, 2024 were as follows:

 

						Average Annual Total Returns
			6-month				1 Year				5 Years				10 Years
Fund at NAV(a)(b)			3.43	%			3.14	%			2.24	%			4.60	%
Fund at Market Price(a)(b)			9.40				7.48				3.02				5.35
Customized Reference Benchmark(c)			2.88				3.20				2.33				N/A
Bloomberg Municipal Bond Index(d)			2.70				2.90				2.00				2.78

 

(a)

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

(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)

The Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond Index Total Return Index Value Unhedged (75%) and the Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (25%). The Customized Reference Benchmark commenced on September 30, 2016.

(d)

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

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.

The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance.

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 posted solid gains for the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.

 

 

6		2 0 2 4  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

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Fund Summary as of January 31, 2024 (continued)		BlackRock Long-Term Municipal Advantage Trust (BTA)

 

At a time of positive market performance, all sectors delivered gains. Corporate-backed, state tax-backed, and education issues made the largest contributions. All ratings tiers, maturities, and coupons delivered positive absolute returns, with the strongest results coming from A rated bonds, securities maturing in 20 years or more, and 4% and 5% coupons, respectively. Bonds with lower coupons and lower dollar prices generally outperformed higher-coupon issues priced at a premium.

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.

Overview of the Fund’s Total Investments

 

 

(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)

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

(d)

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.

(e)

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, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1.5% of the Fund’s total investments.

 

 

F U N D S U M M A R Y		7

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Fund Summary as of January 31, 2024		BlackRock MuniAssets Fund, Inc. (MUA)

 

Investment Objective

BlackRock MuniAssets Fund, Inc.’s (MUA) (the “Fund”) investment objective is to provide high current income exempt from U.S. federal income taxes by investing primarily in a portfolio of medium- to lower-grade or unrated municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests at least 65% of its assets in municipal bonds that are rated in the medium to lower rating categories by nationally recognized rating services (for example, Baa or lower by Moody’s Investors Service, Inc. (“Moody’s”) or BBB or lower by S&P Global Ratings, or securities that are unrated but are deemed by the investment adviser to be of comparable quality at the time of investment. The Fund may invest directly in such 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		MUA
Initial Offering Date		June 25, 1993
Yield on Closing Market Price as of January 31, 2024 ($ 10.91)(a)		6.10%
Tax Equivalent Yield(b)		10.30%
Current Monthly Distribution per Common Share(c)		$0.055500
Current Annualized Distribution per Common Share(c)		$0.666000
Leverage as of January 31, 2024(d)		29%

 

(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

 

		01/31/24				07/31/23				Change				High				Low
Closing Market Price		$	10.91			$	10.24				6.54	%		$	11.30			$	8.72
Net Asset Value			11.42				11.28				1.24				11.59				10.04

Performance

Returns for the period ended January 31, 2024 were as follows:

 

						Average Annual Total Returns
			6-month				1 Year				5 Years				10 Years
Fund at NAV(a)(b)			4.05	%			2.32	%			1.27	%			3.83	%
Fund at Market Price(a)(b)			9.50				0.93				0.39				4.06
High Yield Customized Reference Benchmark(c)			3.17				3.91				2.91				N/A
Bloomberg Municipal High Yield Bond Index(d)			3.42				4.08				3.26				4.61

 

(a)

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

(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)

The High Yield Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond Rated Baa Index (20%), the Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (60%) and the Bloomberg Municipal Investment Grade ex BBB Index (20%). The High Yield Customized Reference Benchmark commenced on September 30, 2016.

(d)

An index designed to measure the performance of U.S. dollar-denominated high-yield municipal bonds issued by U.S. states, the District of Columbia, U.S. territories and local governments or agencies.

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.

The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance.

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 posted solid gains for the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.

 

 

8		2 0 2 4  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

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Fund Summary as of January 31, 2024 (continued)		BlackRock MuniAssets Fund, Inc. (MUA)

 

At a time of positive market performance, all sectors delivered gains. State tax-backed, corporate-backed, other industries, education, and transportation issues made the largest contributions. All ratings tiers, maturities, and coupons delivered positive absolute returns, with the strongest results coming from non-rated bonds, securities maturing in 20 years or more, and 4% and 5% coupons, respectively. Bonds with lower coupons and lower dollar prices generally outperformed higher-coupon issues priced at a premium. The Fund’s cash position had no material impact on performance.

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.

Overview of the Fund’s Total Investments

 

 

(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)

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

(d)

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.

(e)

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, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1.5% of the Fund’s total investments.

 

 

F U N D S U M M A R Y		9

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Fund Summary as of January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI)

 

Investment Objective

BlackRock Municipal Income Fund, Inc.’s (MUI) (the “Fund”) investment objective is to provide common shareholders with high current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests at least 75% of its assets in municipal bonds rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser, at the time of investment. The Fund may invest directly in such 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		MUI
Initial Offering Date		August 1, 2003
Yield on Closing Market Price as of January 31, 2024 ($ 11.65)(a)		5.67%
Tax Equivalent Yield(b)		9.58%
Current Monthly Distribution per Common Share(c)		$0.055000
Current Annualized Distribution per Common Share(c)		$0.660000
Leverage as of January 31, 2024(d)		39%

 

(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

 

		01/31/24				07/31/23				Change				High				Low
Closing Market Price		$	11.65			$	11.47				1.57	%		$	11.81			$	9.75
Net Asset Value			13.37				13.23				1.06				13.55				11.67

Performance

Returns for the period ended January 31, 2024 were as follows:

 

						Average Annual Total Returns
			6-month				1 Year				5 Years				10 Years
Fund at NAV(a)(b)			3.32	%			3.61	%			1.84	%			3.62	%
Fund at Market Price(a)(b)			3.84				0.95				1.82				2.85
National Customized Reference Benchmark(c)			2.77				3.02				2.13				N/A
Bloomberg Municipal Bond Index(d)			2.70				2.90				2.00				2.78

 

(a)

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

(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)

The National Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond Index Total Return Index Value Unhedged (90%) and the Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). The National Customized Reference Benchmark commenced on September 30, 2016.

(d)

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

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.

The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance.

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 posted solid gains in the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.

Income was the largest contributor to the Fund’s performance. Holdings in the 15- to 20-year maturity range were key contributors, as well. Income was the largest contributor to the Fund’s performance. Holdings in the 15- to 20-year maturity range were key contributors as well. Holdings in high yield (non investment-grade) bonds also contributed, as did positions in A and BBB rated bonds within the investment-grade category. At the sector level, transportation and tax-backed issues were the largest contributors.

 

 

10		2 0 2 4  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

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Fund Summary as of January 31, 2024 (continued)		BlackRock Municipal Income Fund, Inc. (MUI)

 

The Fund’s use of U.S. Treasury futures to manage interest rate risk detracted from performance due to the strong bond market rally in the second half of the period. The Fund continued to use leverage, but the performance impact was muted due to increased borrowing costs.

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.

Overview of the Fund’s Total Investments

 

 

(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)

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

(d)

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.

(e)

Rounds to less than 0.1% of total investments.

(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, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Fund’s total investments.

 

 

F U N D S U M M A R Y		11

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Fund Summary as of January 31, 2024		BlackRock MuniYield Fund, Inc. (MYD)

 

Investment Objective

BlackRock MuniYield Fund, Inc.’s (MYD) (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 bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade, or deemed to be of comparable quality by the investment adviser, at the time of investment and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such 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		MYD
Initial Offering Date		November 29, 1991
Yield on Closing Market Price as of January 31, 2024 ($ 10.70)(a)		5.89%
Tax Equivalent Yield(b)		9.95%
Current Monthly Distribution per Common Share(c)		$0.052500
Current Annualized Distribution per Common Share(c)		$0.630000
Leverage as of January 31, 2024(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

 

		01/31/24				07/31/23				Change				High				Low
Closing Market Price			$ 10.70				$ 10.50				1.90	%			$ 10.85				$  8.82
Net Asset Value			12.27				12.14				1.07				12.43				10.62

Performance

Returns for the period ended January 31, 2024 were as follows:

 

						Average Annual Total Returns
		6-month				1 Year				5 Years				10 Years
Fund at NAV(a)(b)			3.60	%			4.02	%			1.87	%			4.12	%
Fund at Market Price(a)(b)			4.45				0.11				0.23				3.04
National Customized Reference Benchmark(c)			2.77				3.02				2.13				N/A
Bloomberg Municipal Bond Index(d)			2.70				2.90				2.00				2.78

 

(a)

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

(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)

The National Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond Index Total Return Index Value Unhedged (90%) and the Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). The National Customized Reference Benchmark commenced on September 30, 2016.

(d)

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

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.

The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance.

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 posted solid gains in the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.

Holdings in long-dated securities, which outperformed the broader market, contributed the most to performance given their high weighting in the Fund. While all sectors delivered positive returns, positions in high-quality bonds—especially in the tax-backed state and transportation sectors—were the largest contributors.

 

 

12		2 0 2 4  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

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Fund Summary as of January 31, 2024 (continued)		BlackRock MuniYield Fund, Inc. (MYD)

 

The Fund’s use of leverage contributed to returns by increasing overall portfolio duration and income. (Duration is a measure of interest rate sensitivity.) While higher short-term borrowing costs reduced the income benefit of leverage, the investment adviser actively engaged in tax-loss selling and rotated the proceeds into higher-yielding securities. The Fund continued to use U.S. Treasury futures in an effort to mitigate interest rate risk, which detracted from performance at a time in which yields fell.

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.

Overview of the Fund’s Total Investments

 

 

(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)

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

(d)

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.

(e)

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, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Fund’s total investments.

 

 

F U N D S U M M A R Y		13

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Fund Summary as of January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Investment Objective

BlackRock MuniYield Quality Fund, Inc.’s (MQY) (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 bonds exempt from U.S federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests in municipal bonds which are in the three highest quality rating categories (A or better), or which are deemed to be of comparable quality by the adviser, at the time of investment. The Fund invests primarily in long-term municipal bonds with maturities of more than ten years at the time of investment. The Fund may invest directly in such 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		MQY
Initial Offering Date		June 26, 1992
Yield on Closing Market Price as of January 31, 2024 ($ 12.16)(a)		5.72%
Tax Equivalent Yield(b)		9.66%
Current Monthly Distribution per Common Share(c)		$0.058000
Current Annualized Distribution per Common Share(c)		$0.696000
Leverage as of January 31, 2024(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

 

		01/31/24				07/31/23				Change				High				Low
Closing Market Price		$	12.16			$	11.86				2.53	%		$	12.47			$	9.86
Net Asset Value			13.33				13.22				0.83				13.51				11.67

Performance

Returns for the period ended January 31, 2024 were as follows:

 

						Average Annual Total Returns
			6-month				1 Year				5 Years				10 Years
Fund at NAV(a)(b)			3.44	%			3.77	%			2.23	%			4.09	%
Fund at Market Price(a)(b)			5.18				3.91				2.40				3.54
National Customized Reference Benchmark(c)			2.77				3.02				2.13				N/A
Bloomberg Municipal Bond Index(d)			2.70				2.90				2.00				2.78

 

(a)

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

(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)

The National Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond Index Total Return Index Value Unhedged (90%) and the Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). The National Customized Reference Benchmark commenced on September 30, 2016.

(d)

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

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.

The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance.

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 posted solid gains for the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.

 

 

14		2 0 2 4  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

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Fund Summary as of January 31, 2024 (continued)		BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Income was the largest contributor to the Fund’s performance. Holdings in the 15- to 20-year maturity range were key contributors as well. Income was the largest contributor to the Fund’s performance. Holdings in the 15- to 20-year maturity range were key contributors, as well. Holdings in high yield (non investment-grade) bonds also contributed, as did positions in A and BBB rated bonds within the investment-grade category. At the sector level, transportation and tax-backed issues were the largest contributors.

The Fund’s use of U.S. Treasury futures to manage interest rate risk detracted from performance due to the strong bond market rally in the second half of the period. The Fund continued to use leverage, but the performance impact was muted due to increased borrowing costs.

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.

Overview of the Fund’s Total Investments

 

 

(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)

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

(d)

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.

(e)

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, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Fund’s total investments.

 

 

F U N D S U M M A R Y		15

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Fund Summary as of January 31, 2024		BlackRock MuniYield Quality Fund III, Inc. (MYI)

 

Investment Objective

BlackRock MuniYield Quality Fund III, Inc.’s (MYI) (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 U.S. federal alternative minimum tax). 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 managed 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.

On October 30, 2023, the Board of Directors of the Fund and the Board of Directors/Trustees of each of BlackRock MuniYield Michigan Quality Fund, Inc. (MIY), BlackRock MuniYield Pennsylvania Quality Fund (MPA), BlackRock Virginia Municipal Bond Trust (BHV), and BlackRock Investment Quality Municipal Trust, Inc. (BKN) (collectively, the “Target Funds”) announced the withdrawal of merger proposals that were previoulsy approved by the Boards pursuant to which each of the Target Funds would have been merged into MYI, with MYI continuing as the surviving Fund.

Fund Information

 

Symbol on New York Stock Exchange		MYI
Initial Offering Date		March 27, 1992
Yield on Closing Market Price as of January 31, 2024 ($ 11.28)(a)		5.90%
Tax Equivalent Yield(b)		9.97%
Current Monthly Distribution per Common Share(c)		$0.055500
Current Annualized Distribution per Common Share(c)		$0.666000
Leverage as of January 31, 2024(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 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

 

		01/31/24				07/31/23				Change				High				Low
Closing Market Price		$	11.28			$	11.13				1.35	%		$	11.64			$	9.34
Net Asset Value			12.68				12.51				1.36				12.87				11.07

Performance

Returns for the period ended January 31, 2024 were as follows:

 

						Average Annual Total Returns
			6-month				1 Year				5 Years				10 Years
Fund at NAV(a)(b)			3.97	%			4.12	%			2.74	%			4.18	%
Fund at Market Price(a)(b)			3.96				2.68				2.53				3.56
National Customized Reference Benchmark(c)			2.77				3.02				2.13				N/A
Bloomberg Municipal Bond Index(d)			2.70				2.90				2.00				2.78

 

(a)

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

(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)

The National Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond Index Total Return Index Value Unhedged (90%) and the Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). The National Customized Reference Benchmark commenced on September 30, 2016.

(d)

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

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.

The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance.

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

 

 

16		2 0 2 4  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

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Fund Summary as of January 31, 2024 (continued)		BlackRock MuniYield Quality Fund III, Inc. (MYI)

 

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

Municipal bonds posted solid gains for the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.

The Fund’s holdings in longer-maturity bonds (15- to 20-year issues), the strongest performing area of the market, contributed to performance. Holdings in high yield (non investment-grade bonds) contributed as well. Within the investment-grade category, A rated bonds were generally the top performers.

Security selection in the transportation sector was a slight detractor. The Fund continued to use leverage, but the performance impact was muted due to increased borrowing costs.

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.

Overview of the Fund’s Total Investments

 

 

(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)

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

(d)

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.

(e)

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, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1.0% of the Fund’s total investments.

 

 

F U N D S U M M A R Y		17

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Schedule of Investments (unaudited) January 31, 2024		BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets)

 

 

 

18		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		19

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets)

 

 

 

20		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		21

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets)

 

 

 

22		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		23

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Schedule of Investments (unaudited)(continued) January 31, 2024		BlackRock Long-Term Municipal Advantage Trust (BTA)

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer		Value at 07/31/23				Purchases at Cost				Proceeds from Sale				Net Realized Gain (Loss)				Change in Unrealized Appreciation (Depreciation)				Value at 01/31/24				Shares Held at 01/31/24				Income				Capital Gain Distributions from Underlying Funds
BlackRock Liquidity Funds, MuniCash, Institutional Class		$	12,588,591			$	—			$	(9,318,269)(a)			$	1,926			$	(1,390	)		$	3,270,858				3,270,530			$	93,235			$	—

 

(a)

Represents net amount purchased (sold).

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 financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments 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		$	—			$	204,831,680			$	422,491			$	205,254,171
Municipal Bonds Transferred to Tender Option Bond Trusts			—				11,226,375				—				11,226,375
Short-Term Securities
Money Market Funds			3,270,858				—				—				3,270,858
		$	3,270,858			$	216,058,055			$	422,491			$	219,751,404

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 fair value hierarchy as follows:

 

		Level 1				Level 2				Level 3				Total
Liabilities
TOB Trust Certificates		$	—			$	(6,218,595	)		$	—			$	(6,218,595	)
VRDP Shares at Liquidation Value			—				(76,000,000	)			—				(76,000,000	)
		$	—			$	(82,218,595	)		$	—			$	(82,218,595	)

See notes to financial statements.

 

 

24		2 0 2 4  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

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Schedule of Investments (unaudited) January 31, 2024		BlackRock MuniAssets Fund, Inc. (MUA) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		25

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniAssets Fund, Inc. (MUA) (Percentages shown are based on Net Assets)

 

 

 

26		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniAssets Fund, Inc. (MUA) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		27

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniAssets Fund, Inc. (MUA) (Percentages shown are based on Net Assets)

 

 

 

28		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniAssets Fund, Inc. (MUA) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		29

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniAssets Fund, Inc. (MUA) (Percentages shown are based on Net Assets)

 

 

 

30		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniAssets Fund, Inc. (MUA) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		31

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniAssets Fund, Inc. (MUA)

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer		Value at 07/31/23				Purchases at Cost				Proceeds from Sale				Net Realized Gain (Loss)				Change in Unrealized Appreciation (Depreciation)				Value at 01/31/24				Shares Held at 01/31/24				Income				Capital Gain Distributions from Underlying Funds
BlackRock Liquidity Funds, MuniCash, Institutional Class .		$	73,862,164			$	—			$	(40,411,039	)(a)		$	4,812			$	1,484			$	33,457,421				33,454,075			$	890,431			$	—

 

(a)

Represents net amount purchased (sold).

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 financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

		Level 1				Level 2				Level 3				Total
Assets
Investments
Long-Term Investments
Corporate Bonds		$	—			$	2,223,067			$	—			$	2,223,067
Municipal Bonds			—				563,177,331				1,144,644				564,321,975
Municipal Bonds Transferred to Tender Option Bond Trusts			—				8,557,986				—				8,557,986
Short-Term Securities
Money Market Funds			33,457,421				—				—				33,457,421
Unfunded Commitments(a)			—				—				4,516,898				4,516,898
		$	33,457,421			$	573,958,384			$	5,661,542			$	613,077,347

 

(a)

Unfunded commitments are valued at the unrealized appreciation (depreciation) on the commitment.

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 fair value hierarchy as follows:

 

		Level 1				Level 2				Level 3				Total
Liabilities
TOB Trust Certificates		$	—			$	(4,500,000	)		$	—			$	(4,500,000	)
VRDP Shares at Liquidation Value			—				(175,000,000	)			—				(175,000,000	)
		$	—			$	(179,500,000	)		$	—			$	(179,500,000	)

 

 

32		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniAssets Fund, Inc. (MUA)

 

A reconciliation of Level 3 financial instruments is presented when the Fund had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

 

		Municipal Bonds				Unfunded Commitments				Total
Assets
Opening balance, as of July 31, 2023		$	1,084,754			$	—			$	1,084,754
Transfers into Level 3			—				—				—
Transfers out of Level 3			—				—				—
Accrued discounts/premiums			—				—				—
Net realized gain (loss)			—				—				—
Net change in unrealized appreciation (depreciation)(a)(b)			62,902				4,516,898				4,579,800
Purchases			—								—
Sales			(3,012	)			—				(3,012	)
Closing balance, as of January 31, 2024		$	1,144,644			$	4,516,898			$	5,661,542
Net change in unrealized appreciation (depreciation) on investments still held at January 31, 2024(b)		$	62,902			$	4,516,898			$	4,579,800

 

(a)

Included in the related net change in unrealized appreciation (depreciation) in the Statements of Operations.

(b)

Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at January 31, 2024 is generally due to investments no longer held or categorized as Level 3 at period end.

The Fund’s financial instruments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third-party information could result in a significantly lower or higher value of such Level 3 financial instruments.

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		33

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Schedule of Investments (unaudited) January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI) (Percentages shown are based on Net Assets)

 

 

 

34		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		35

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI) (Percentages shown are based on Net Assets)

 

 

 

36		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		37

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI) (Percentages shown are based on Net Assets)

 

 

 

38		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		39

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI) (Percentages shown are based on Net Assets)

 

 

 

40		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		41

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI) (Percentages shown are based on Net Assets)

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer		Value at 07/31/23				Purchases at Cost				Proceeds from Sale				Net Realized Gain (Loss)				Change in Unrealized Appreciation (Depreciation)				Value at 01/31/24				Shares Held at 01/31/24				Income				Capital Gain Distributions from Underlying Funds
BlackRock Liquidity Funds, MuniCash, Institutional Class.		$	36,788,624			$	—			$		(15,791,821)(a)		$	2,671			$	2,187			$	21,001,661				20,999,561			$	546,493			$	—

 

(a)

Represents net amount purchased (sold).

Derivative Financial Instruments Categorized by Risk Exposure

For the period ended January 31, 2024, 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		$	—			$	—			$	—			$	—			$	(2,269,716	)		$	—			$	(2,269,716	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		$	—			$	—			$	—			$	—			$	137,766			$	—			$	137,766

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:
Average notional value of contracts — short		$	39,118,672

 

 

42		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock Municipal Income Fund, Inc. (MUI)

 

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 financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments 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		$	—			$	1,446,480,293			$	—			$	1,446,480,293
Municipal Bonds Transferred to Tender Option Bond Trusts			—				95,689,456				—				95,689,456
Short-Term Securities
Money Market Funds			21,001,661				—				—				21,001,661
		$	21,001,661			$	1,542,169,749			$	—			$	1,563,171,410

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 fair value hierarchy as follows:

 

		Level 1				Level 2				Level 3				Total
Liabilities
TOB Trust Certificates		$	—			$	(51,489,875	)		$	—			$	(51,489,875	)
VRDP Shares at Liquidation Value			—				(561,700,000	)			—				(561,700,000	)
		$	—			$	(613,189,875	)		$	—			$	(613,189,875	)

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		43

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Schedule of Investments (unaudited) January 31, 2024		BlackRock MuniYield Fund, Inc. (MYD) (Percentages shown are based on Net Assets)

 

 

 

44		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Fund, Inc. (MYD) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		45

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Fund, Inc. (MYD) (Percentages shown are based on Net Assets)

 

 

 

46		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Fund, Inc. (MYD) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		47

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Fund, Inc. (MYD) (Percentages shown are based on Net Assets)

 

 

 

48		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Fund, Inc. (MYD) (Percentages shown are based on Net Assets)

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer		Value at 07/31/23				Purchases at Cost				Proceeds from Sale				Net Realized Gain (Loss)				Change in Unrealized Appreciation (Depreciation)				Value at 01/31/24				Shares Held at 01/31/24				Income				Capital Gain Distributions from Underlying Funds
BlackRock Liquidity Funds, MuniCash, Institutional Class		$	25,211,856			$	—			$	(19,920,496	)(a)		$	48			$	750			$	5,292,158				5,291,628			$	159,628			$	—

 

(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			87				03/19/24			$	9,775			$	(308,647	)
U.S. Long Bond			65				03/19/24				7,971				(439,353	)
5-Year U.S. Treasury Note			64				03/28/24				6,941				(137,422	)
														$	(885,422	)

 

 

S C H E D U L E  O F  I N V E S T M E N T S		49

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Fund, Inc. (MYD)

 

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
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		$	—			$	—			$	—			$	—			$	885,422			$	—			$	885,422

 

(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 period ended January 31, 2024, 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		$	—			$	—			$	—			$	—			$	(1,780,278	)		$	—			$	(1,780,278	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		$	—			$	—			$	—			$	—			$	(885,422	)		$	—			$	(885,422	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:
Average notional value of contracts — short		$	35,856,824

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 financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments 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		$	—			$	754,622,500			$	—			$	754,622,500
Municipal Bonds Transferred to Tender Option Bond Trusts			—				96,618,164				—				96,618,164
Short-Term Securities
Money Market Funds			5,292,158				—				—				5,292,158
		$	5,292,158			$	851,240,664			$	—			$	856,532,822
Derivative Financial Instruments(a)
Liabilities
Interest Rate Contracts		$	(885,422	)		$	—			$	—			$	(885,422	)

 

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

 

 

50		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Fund, Inc. (MYD)

 

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 fair value hierarchy as follows:

 

		Level 1				Level 2				Level 3				Total
Liabilities
TOB Trust Certificates		$	—			$	(51,338,092)			$	—			$	(51,338,092)
VRDP Shares at Liquidation Value			—				(251,400,000	)			—				(251,400,000	)
		$	—			$	(302,738,092)			$	—			$	(302,738,092)

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		51

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Schedule of Investments (unaudited) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY) (Percentages shown are based on Net Assets)

 

 

 

52		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		53

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY) (Percentages shown are based on Net Assets)

 

 

 

54		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		55

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY) (Percentages shown are based on Net Assets)

 

 

 

56		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		57

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Schedule of Investments (unaudited)(continued) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY) (Percentages shown are based on Net Assets)

 

 

 

58		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		59

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY) (Percentages shown are based on Net Assets)

 

 

 

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY) (Percentages shown are based on Net Assets)

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer			Value at 07/31/23				Purchases at Cost				Proceeds from Sale				Net Realized Gain (Loss)				Change in Unrealized Appreciation (Depreciation)				Value at 01/31/24				Shares Held at 01/31/24				Income				Capital Gain Distributions from Underlying Funds
BlackRock Liquidity Funds, MuniCash, Institutional Class		$	16,360,404			$	6,711,075	(a)		$	—			$	4,054			$	2,308			$	23,077,841				23,075,533			$	637,642			$	—

 

(a)

Represents net amount purchased (sold).

Derivative Financial Instruments Categorized by Risk Exposure

For the period ended January 31, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

Currency		Commodity Contracts				Credit Contracts				Equity Contracts				Foreign Exchange Contracts				Interest Rate Contracts				Other Contracts				Total
Net Realized Gain (Loss) from:
Futures contracts		$	—				$—			$	—			$	—			$	(2,253,277	)		$	—			$	(2,253,277	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		$	—			$	—			$	—			$	—			$	132,259			$	—			$	132,259

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:		Value
Average notional value of contracts — short		$	36,537,399

 

 

S C H E D U L E   O F  I N V E S T M E N T S		61

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund, Inc. (MQY)

 

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 financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments 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		$	—			$	1,308,103,580			$	—			$	1,308,103,580
Municipal Bonds Transferred to Tender Option Bond Trusts			—				139,485,924				—				139,485,924
Short-Term Securities
Money Market Funds			23,077,841				—				—				23,077,841
		$	23,077,841			$	1,447,589,504			$	—			$	1,470,667,345

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 fair value hierarchy as follows:

 

		Level 1				Level 2				Level 3				Total
Liabilities
TOB Trust Certificates		$	—			$	(67,413,610	)		$	—			$	(67,413,610	)
VRDP Shares at Liquidation Value			—				(450,300,000	)			—				(450,300,000	)
		$	—			$	(517,713,610	)		$	—			$	(517,713,610	)

See notes to financial statements.

 

 

62		2 0 2 4  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

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Schedule of Investments (unaudited) January 31, 2024		BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		63

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets)

 

 

 

64		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		65

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets)

 

 

 

66		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		67

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets)

 

 

 

68		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets)

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S		69

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets)

 

 

 

70		2 0 2 4  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

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Schedule of Investments (unaudited) (continued) January 31, 2024		BlackRock MuniYield Quality Fund III, Inc. (MYI)

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer		Value at 07/31/23				Purchases at Cost				Proceeds from Sale				Net Realized Gain (Loss)				Change in Unrealized Appreciation (Depreciation)				Value at 01/31/24				Shares Held at 01/31/24				Income				Capital Gain Distributions from Underlying Funds
BlackRock Liquidity Funds, MuniCash, Institutional Class		$	9,536,835			$	—			$	(3,623,262	)(a)		$	1,578			$	591			$	5,915,742				5,915,151			$	427,443			$	—

 

(a)

Represents net amount purchased (sold).

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 financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments 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		$	—			$	1,037,843,867			$	—			$	1,037,843,867
Municipal Bonds Transferred to Tender Option Bond Trusts			—				277,417,212				—				277,417,212
Short-Term Securities
Money Market Funds			5,915,742				—				—				5,915,742
		$	5,915,742			$	1,315,261,079			$	—			$	1,321,176,821

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 fair value hierarchy as follows:

 

		Level 1				Level 2				Level 3				Total
Liabilities
TOB Trust Certificates		$	—			$	(132,763,095	)		$	—			$	(132,763,095	)
VRDP Shares at Liquidation Value			—				(356,400,000	)			—				(356,400,000	)
		$	—			$	(489,163,095	)		$	—			$	(489,163,095	)

 

 

S C H E D U L E   O F  I N V E S T M E N T S		71

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Statements of Assets and Liabilities (unaudited)

January 31, 2024

 

		BTA				MUA				MUI				MYD
ASSETS
Investments, at value — unaffiliated(a)		$	216,480,546			$	575,103,028			$	1,542,169,749			$	851,240,664
Investments, at value — affiliated(b)			3,270,858				33,457,421				21,001,661				5,292,158
Cash			1,769,565				3,995,294				—				7,926,658
Cash pledged for futures contracts			—				—				—				553,000
Receivables:
Investments sold			884,033				233,933				9,014,916				—
TOB Trust			—				—				—				3,810,184
Dividends — affiliated			10,289				101,169				85,515				6,196
Interest — unaffiliated			2,231,365				5,793,023				14,919,938				9,076,480
Unfunded commitments			—				4,516,898				—				—
Deferred offering costs			—				61,500				—				—
Prepaid expenses			13,436				150,133				179,053				—
Total assets			224,660,092				623,412,399				1,587,370,832				877,905,340
ACCRUED LIABILITIES
Bank overdraft			—				—				15,650				—
Payables:
Investments purchased			1,746,577				2,113,271				6,610,769				10,579,041
Accounting services fees			7,709				26,433				48,734				32,233
Custodian fees			901				2,035				4,392				2,669
Income dividend distributions — Common Shares			584,635				2,133,749				3,959,568				2,401,009
Interest expense and fees			45,592				38,956				301,849				437,269
Investment advisory fees			118,118				283,674				729,851				363,631
Offering costs			—				51,633				—				—
Directors’ and Officer’s fees			22,685				1,581				530,413				301,849
Other accrued expenses			8,056				29,774				55,872				16,847
Professional fees			25,848				61,245				38,424				48,805
Transfer agent fees			8,279				23,357				1,272				24,508
Variation margin on futures contracts			—				—				—				189,245
Total accrued liabilities			2,568,400				4,765,708				12,296,794				14,397,106
OTHER LIABILITIES
TOB Trust Certificates			6,218,595				4,500,000				51,489,875				51,338,092
VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)(e)			75,676,232				174,937,276				561,403,586				251,128,294
Total other liabilities			81,894,827				179,437,276				612,893,461				302,466,386
Total liabilities			84,463,227				184,202,984				625,190,255				316,863,492
Commitments and contingent liabilities
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS		$	140,196,865			$	439,209,415			$	962,180,577			$	561,041,848
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF
Paid-in capital(f)(g)(h)		$	156,197,951			$	514,130,562			$	1,034,023,456			$	611,402,261
Accumulated loss			(16,001,086	)			(74,921,147	)			(71,842,879	)			(50,360,413	)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS		$	140,196,865			$	439,209,415			$	962,180,577			$	561,041,848
Net asset value per Common Share		$	10.43			$	11.42			$	13.37			$	12.27
(a) Investments, at cost — unaffiliated		$	219,701,464			$	612,072,704			$	1,495,163,747			$	818,789,982
(b) Investments, at cost — affiliated		$	3,270,530			$	33,449,258			$	20,999,548			$	5,291,985
(c)  Preferred Shares outstanding			760				1,750				5,617				2,514
(d) Preferred Shares authorized			Unlimited				1,750				18,417				16,234
(e) Par value per Preferred Share		$	0.001			$	0.10			$	0.10			$	0.10
(f)  Common Shares outstanding			13,439,892				38,445,935				71,992,145				45,733,511
(g) Common Shares authorized			Unlimited				199,998,250				199,981,583				199,983,766
(h) Par value per Common Share		$	0.001			$	0.10			$	0.10			$	0.10

See notes to financial statements.

 

 

72		2 0 2 4  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

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Statements of Assets and Liabilities (unaudited) (continued)

January 31, 2024

 

		MQY				MYI
ASSETS
Investments, at value — unaffiliated(a)		$	1,447,589,504			$	1,315,261,079
Investments, at value — affiliated(b)			23,077,841				5,915,742
Receivables:
Investments sold			3,513,254				2,788,151
Dividends — affiliated			68,899				27,253
Interest — unaffiliated			13,448,660				13,590,898
Prepaid expenses			987,387				294,997
Total assets			1,488,685,545				1,337,878,120
ACCRUED LIABILITIES
Bank overdraft			1,662				—
Payables:
Investments purchased			7,728,995				—
Accounting services fees			46,304				44,189
Custodian fees			4,249				3,464
Income dividend distributions — Common Shares			4,166,350				3,688,932
Interest expense and fees			515,339				1,157,404
Investment advisory fees			621,237				563,149
Directors’ and Officer’s fees			265,058				436,619
Other accrued expenses			12,138				6,127
Professional fees			57,519				67,588
Transfer agent fees			36,311				29,531
Total accrued liabilities			13,455,162				5,997,003
OTHER LIABILITIES
TOB Trust Certificates			67,413,610				132,763,095
VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)(e)			450,271,496				356,137,977
Total other liabilities			517,685,106				488,901,072
Total liabilities			531,140,268				494,898,075
Commitments and contingent liabilities
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS		$	957,545,277			$	842,980,045
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF
Paid-in capital(f)(g)(h)		$	1,025,358,015			$	867,393,928
Accumulated loss			(67,812,738	)			(24,413,883	)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS		$	957,545,277			$	842,980,045
Net asset value per Common Share		$	13.33			$	12.68
(a) Investments, at cost — unaffiliated		$	1,395,371,056			$	1,259,684,081
(b) Investments, at cost — affiliated		$	23,075,533			$	5,914,882
(c)  Preferred Shares outstanding			4,503				3,564
(d) Preferred Shares authorized			14,503				26,364
(e) Par value per Preferred Share		$	0.10			$	0.10
(f)  Common Shares outstanding			71,833,617				66,467,251
(g) Common Shares authorized			199,985,497				199,973,636
(h) Par value per Common Share		$	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		73

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Statements of Operations (unaudited)

Six Months Ended January 31, 2024

 

		BTA				MUA				MUI				MYD
INVESTMENT INCOME
Dividends — affiliated		$	93,235			$	890,431			$	546,493			$	159,628
Interest — unaffiliated			5,271,247				14,385,590				33,643,920				18,845,551
Total investment income			5,364,482				15,276,021				34,190,413				19,005,179
EXPENSES
Investment advisory			671,947				1,662,910				4,275,163				2,057,616
Professional			31,136				248,706				34,566				32,130
Accounting services			14,402				48,691				90,672				58,874
Transfer agent			13,420				26,110				41,900				24,528
Printing and postage			9,045				10,471				10,248				7,056
Directors and Officer			6,355				13,584				63,282				36,795
Registration			4,230				4,972				19,689				8,175
Liquidity fees			3,900				8,981				28,826				12,902
Remarketing fees on Preferred Shares			3,830				8,818				28,303				12,667
Custodian			1,257				3,385				8,959				4,794
Miscellaneous			50,553				6,698				114,274				34,951
Total expenses excluding interest expense, fees and amortization of offering costs			810,075				2,043,326				4,715,882				2,290,488
Interest expense, fees and amortization of offering costs(a)			1,855,101				4,156,929				13,771,422				6,239,823
Total expenses			2,665,176				6,200,255				18,487,304				8,530,311
Less:
Fees waived and/or reimbursed by the Manager			(2,659	)			(25,640	)			(16,081	)			(4,500	)
Total expenses after fees waived and/or reimbursed			2,662,517				6,174,615				18,471,223				8,525,811
Net investment income			2,701,965				9,101,406				15,719,190				10,479,368
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated			(2,219,548	)			(3,754,606	)			(20,640,478	)			(16,302,373	)
Investments — affiliated			1,926				4,812				2,671				48
Futures contracts			—				—				(2,269,716	)			(1,780,278	)
			(2,217,622	)			(3,749,794	)			(22,907,523	)			(18,082,603	)
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated			3,944,580				5,698,767				32,387,240				24,061,652
Investments — affiliated			(1,390	)			1,484				2,187				750
Futures contracts			—				—				137,766				(885,422	)
Unfunded commitments			—				4,516,898				—				—
			3,943,190				10,217,149				32,527,193				23,176,980
Net realized and unrealized gain			1,725,568				6,467,355				9,619,670				5,094,377
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS		$	4,427,533			$	15,568,761			$	25,338,860			$	15,573,745

^(a) Related to TOB Trusts and/or VRDP Shares.

See notes to financial statements.

 

 

74		2 0 2 4  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

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Statements of Operations (unaudited) (continued)

Six Months Ended January 31, 2024

 

		MQY				MYI
INVESTMENT INCOME
Dividends — affiliated		$	637,642			$	427,443
Interest — unaffiliated			32,037,420				29,098,817
Total investment income			32,675,062				29,526,260
EXPENSES
Investment advisory			3,576,161				3,299,048
Accounting services			85,045				81,471
Professional			52,587				33,605
Directors and Officer			45,744				53,494
Transfer agent			34,892				29,945
Registration			11,994				11,874
Custodian			8,665				6,397
Printing and postage			8,173				5,543
Reorganization			—				58,228
Miscellaneous			36,329				36,532
Total expenses excluding interest expense, fees and amortization of offering costs			3,859,590				3,616,137
Interest expense, fees and amortization of offering costs(a)			10,951,910				10,995,260
Total expenses			14,811,500				14,611,397
Less:
Fees waived and/or reimbursed by the Manager			(18,387	)			(11,871	)
Total expenses after fees waived and/or reimbursed			14,793,113				14,599,526
Net investment income			17,881,949				14,926,734
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated			(24,018,873	)			(11,880,590	)
Investments — affiliated			4,054				1,578
Futures contracts			(2,253,277	)			—
Payment by affiliate			6,492				—
			(26,261,604	)			(11,879,012	)
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated			34,896,856				24,076,632
Investments — affiliated			2,308				591
Futures contracts			132,259				—
			35,031,423				24,077,223
Net realized and unrealized gain			8,769,819				12,198,211
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS		$	26,651,768			$	27,124,945

^(a) Related to TOB Trusts and/or VRDP Shares.

See notes to financial statements.

 

 

F I N A N C I A L  S T A T E M E N T S		75

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Statements of Changes in Net Assets

 

		BTA															MUA
				Six Months Ended 01/31/24										Year Ended			Six Months Ended 01/31/24									Year Ended
									(unaudited	)				07/31/23							(unaudited	)				07/31/23
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
OPERATIONS
Net investment income								$	2,701,965				$	6,196,804						$	9,101,406				$	19,154,015
Net realized loss									(2,217,622	)				(6,220,202	)						(3,749,794	)				(35,435,819	)
Net change in unrealized appreciation (depreciation)									3,943,190					(3,345,748	)						10,217,149					(4,876,064	)
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations									4,427,533					(3,369,146	)						15,568,761					(21,157,868	)
DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)
From net investment income									(3,518,429	)(b)				(7,268,272	)						(10,590,780	)(b)				(25,968,802	)
Return of capital									—					(209,790	)						—					(1,169,737	)
Decrease in net assets resulting from distributions to Common Shareholders									(3,518,429	)				(7,478,062	)						(10,590,780	)				(27,138,539	)
CAPITAL SHARE TRANSACTIONS
Net proceeds from the issuance of common shares									—					—							—					2,613,331
Reinvestment of common distributions									—					21,507							—					164,753
Redemption of shares resulting from share repurchase program (including transaction costs)									—					—							(1,967,553	)				—
Net increase (decrease) in net assets derived from capital share transactions									—					21,507							(1,967,553	)				2,778,084
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
Total increase (decrease) in net assets applicable to Common Shareholders									909,104					(10,825,701	)						3,010,428					(45,518,323	)
Beginning of period									139,287,761					150,113,462							436,198,987					481,717,310
End of period								$	140,196,865				$	139,287,761						$	439,209,415				$	436,198,987

 

(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.

 

 

76		2 0 2 4  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

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Statements of Changes in Net Assets (continued)

 

		MUI															MYD
				Six Months Ended 01/31/24										Year Ended					Six Months Ended 01/31/24										Year Ended
									(unaudited	)				07/31/23										(unaudited	)				07/31/23
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
OPERATIONS
Net investment income								$	15,719,190				$	33,844,144									$	10,479,368				$	21,558,465
Net realized loss									(22,907,523	)				(64,092,887	)									(18,082,603	)				(52,231,134	)
Net change in unrealized appreciation (depreciation)									32,527,193					32,869,472										23,176,980					25,113,042
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations									25,338,860					2,620,729										15,573,745					(5,559,627	)
DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)
From net investment income									(17,796,662	)(b)				(33,052,457	)									(11,548,765	)(b)				(19,721,917	)
Return of capital									—					(1,302,207	)									—					(3,240,481	)
Decrease in net assets resulting from distributions to Common Shareholders									(17,796,662	)				(34,354,664	)									(11,548,765	)				(22,962,398	)
CAPITAL SHARE TRANSACTIONS
Redemption of shares resulting from share repurchase program (including transaction costs)									(9,262,292	)				(11,621,508	)									(6,452,972	)				(5,377,139	)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
Total decrease in net assets applicable to Common Shareholders									(1,720,094	)				(43,355,443	)									(2,427,992	)				(33,899,164	)
Beginning of period									963,900,671					1,007,256,114										563,469,840					597,369,004
End of period								$	962,180,577				$	963,900,671									$	561,041,848				$	563,469,840

 

(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.

 

 

F I N A N C I A L  S T A T E M E N T S		77

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Statements of Changes in Net Assets (continued)

 

		MQY															MYI
				Six Months Ended 01/31/24										Year Ended					Six Months Ended 01/31/24										Year Ended
									(unaudited	)				07/31/23										(unaudited	)				07/31/23
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
OPERATIONS
Net investment income								$	17,881,949				$	39,270,737									$	14,926,734				$	31,942,555
Net realized loss									(26,261,604	)				(60,013,625	)									(11,879,012	)				(52,345,163	)
Net change in unrealized appreciation (depreciation)									35,031,423					12,038,614										24,077,223					17,845,170
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations									26,651,768					(8,704,274	)									27,124,945					(2,557,438	)
DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)
From net investment income									(20,933,294	)(b)				(37,256,010	)									(18,258,659	)(b)				(34,274,769	)
Return of capital									—					(4,119,807	)									—					(328,022	)
Decrease in net assets resulting from distributions to Common Shareholders									(20,933,294	)				(41,375,817	)									(18,258,659	)				(34,602,791	)
CAPITAL SHARE TRANSACTIONS
Redemption of shares resulting from share repurchase program (including transaction costs)									(8,490,029	)				(7,063,733	)									(10,490,104	)				(7,043,454	)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
Total decrease in net assets applicable to Common Shareholders									(2,771,555	)				(57,143,824	)									(1,623,818	)				(44,203,683	)
Beginning of period									960,316,832					1,017,460,656										844,603,863					888,807,546
End of period								$	957,545,277				$	960,316,832									$	842,980,045				$	844,603,863

 

(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.

 

 

78		2 0 2 4  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

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Statements of Cash Flows (unaudited) 

Six Months Ended January 31, 2024

 

		BTA				MUA				MUI				MYD
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Net increase in net assets resulting from operations		$	4,427,533			$	15,568,761			$	25,338,860			$	15,573,745
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities:
Proceeds from sales of long-term investments			28,458,030				42,486,678				466,819,009				231,113,189
Purchases of long-term investments			(30,927,755	)			(69,437,132	)			(443,581,602	)			(265,174,067	)
Net proceeds from sales of short-term securities			9,318,269				40,411,039				15,791,821				19,920,496
Amortization of premium and accretion of discount on investments and other fees			(300,216	)			(1,522,636	)			1,506,565				(451,692	)
Net realized loss on investments			2,217,622				3,749,794				20,637,807				16,302,325
Net unrealized appreciation on investments			(3,943,190	)			(10,217,149	)			(32,389,427	)			(24,062,402	)
(Increase) Decrease in Assets
Receivables
Dividends — affiliated			19,236				74,077				(11,959	)			40,438
Interest — unaffiliated			40,610				(81,593	)			358,282				(1,079,799	)
Prepaid expenses			32,249				(29,638	)			7,103				2,537
Increase (Decrease) in Liabilities
Payables
Accounting services fees			(4,640	)			(14,372	)			(26,020	)			(17,955	)
Custodian fees			(958	)			(1,557	)			(3,136	)			(2,358	)
Interest expense and fees			(56,468	)			(46,079	)			(227,423	)			278,861
Investment advisory fees			799				(316	)			(19,839	)			12,172
Directors’ and Officer’s fees			(2,763	)			(895	)			(68,174	)			(39,595	)
Other accrued expenses			(1,149	)			1,972				33,986				4,265
Professional fees			(32,633	)			(11,916	)			(53,952	)			(43,196	)
Proxy fees			—				—				(163,243	)			—
Transfer agent fees			(3,404	)			(2,679	)			(11,085	)			(992	)
Variation margin on futures contracts			—				—				(75,594	)			189,245
Net cash provided by (used for) operating activities			9,241,172				20,926,359				53,861,979				(7,434,783	)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES
Cash dividends paid to Common Shareholders			(2,941,628	)			(8,539,869	)			(13,980,663	)			(9,241,052	)
Payments for offering costs			—				(437	)			—				—
Repayments of TOB Trust Certificates			(6,833,059	)			(6,396,731	)			(38,941,072	)			(8,865,463	)
Net payments on Common Shares redeemed			—				(1,967,553	)			(9,524,721	)			(6,599,514	)
Proceeds from TOB Trust Certificates			2,295,000				—				7,800,000				40,682,911
Decrease in bank overdraft			—				(29,231	)			(106,966	)			(70,513	)
Amortization of deferred offering costs			8,080				2,756				8,443				8,072
Net cash provided by (used for) for financing activities			(7,471,607	)			(16,931,065	)			(54,744,979	)			15,914,441
CASH
Net increase (decrease) in restricted and unrestricted cash			1,769,565				3,995,294				(883,000	)			8,479,658
Restricted and unrestricted cash at beginning of period			—				—				883,000				—
Restricted and unrestricted cash at end of period		$	1,769,565			$	3,995,294			$	—			$	8,479,658
SUPPLEMENTAL DISCLOSURE OFCASH FLOW INFORMATION
Cash paid during the period for interest expense		$	1,903,489			$	4,200,252			$	13,990,402			$	5,952,890
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES
Cash		$	1,769,565			$	3,995,294			$	—			$	7,926,658
Cash pledged
Futures contracts			—				—				—				553,000
		$	1,769,565			$	3,995,294			$	—			$	8,479,658

See notes to financial statements.

 

 

F I N A N C I A L  S T A T E M E N T S		79

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Statements of Cash Flows (unaudited) (continued)

Six Months Ended January 31, 2024

 

		MQY				MYI
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Net increase in net assets resulting from operations		$	26,651,768			$	27,124,945
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			393,999,834				273,599,462
Purchases of long-term investments			(388,284,131	)			(229,820,969	)
Net proceeds from sales (purchases) of short-term securities			(6,711,075	)			3,623,262
Amortization of premium and accretion of discount on investments and other fees			(1,283,581	)			(782,605	)
Net realized loss on investments			23,996,173				11,870,051
Net unrealized appreciation on investments			(34,899,164	)			(24,077,223	)
(Increase) Decrease in Assets
Receivables
Dividends — affiliated			(18,907	)			11,198
Interest — unaffiliated			(432,759	)			326,860
Prepaid expenses			49,673				(3,926	)
Increase (Decrease) in Liabilities
Payables
Accounting services fees			(25,084	)			(23,820	)
Custodian fees			(3,015	)			(2,638	)
Interest expense and fees			7,997				(213,965	)
Investment advisory fees			(82	)			(16,887	)
Directors’ and Officer’s fees			(24,242	)			(57,221	)
Other accrued expenses			(1,647	)			(2,389	)
Professional fees			(32,739	)			(48,827	)
Transfer agent fees			(1,930	)			(3,734	)
Variation margin on futures contracts			(73,716	)			—
Net cash provided by operating activities			12,913,373				61,501,574
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES
Cash dividends paid to Common Shareholders			(16,949,873	)			(14,723,391	)
Repayments of TOB Trust Certificates			(16,839,457	)			(35,811,123	)
Net payments on Common Shares redeemed			(8,848,824	)			(10,811,026	)
Proceeds from TOB Trust Certificates			28,995,610				—
Decrease in bank overdraft			(161,469	)			(170,887	)
Amortization of deferred offering costs			29,640				14,853
Net cash used for financing activities			(13,774,373	)			(61,501,574	)
CASH
Net decrease in restricted and unrestricted cash			(861,000	)			—
Restricted and unrestricted cash at beginning of period			861,000				—
Restricted and unrestricted cash at end of period		$	—			$	—
SUPPLEMENTAL DISCLOSURE OFCASH FLOW INFORMATION
Cash paid during the period for interest expense		$	10,914,273			$	11,194,372

See notes to financial statements.

 

 

80		2 0 2 4  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

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Financial Highlights 

(For a share outstanding throughout each period)

 

		BTA
		Six Months Ended 01/31/24 (unaudited)								Year Ended 07/31/23				Period from 05/01/22 to 07/31/22				Year Ended 04/30/22				Year Ended 04/30/21				Year Ended 04/30/20				Year Ended 04/30/19
Net asset value, beginning of period						$	10.36			$	11.17			$	11.10			$	13.31			$	11.20			$	12.47			$	12.28
Net investment income(a)							0.20				0.46				0.15				0.65				0.67				0.60				0.62
Net realized and unrealized gain (loss)							0.13				(0.71	)			0.08				(2.21	)			2.05				(1.26	)			0.20
Net increase (decrease) from investment operations							0.33				(0.25	)			0.23				(1.56	)			2.72				(0.66	)			0.82
Distributions to Common Shareholders(b)
From net investment income							(0.26	)(c)			(0.54	)			(0.16	)			(0.65	)			(0.61	)			(0.61	)			(0.63	)
Return of capital							—				(0.02	)			—				—				—				—				—
Total distributions to Common Shareholders							(0.26	)			(0.56	)			(0.16	)			(0.65	)			(0.61	)			(0.61	)			(0.63	)
Net asset value, end of period						$	10.43			$	10.36			$	11.17			$	11.10			$	13.31			$	11.20			$	12.47
Market price, end of period						$	10.34			$	9.71			$	12.10			$	10.43			$	13.20			$	10.92			$	11.88
Total Return Applicable to Common Shareholders(d)
Based on net asset value							3.43	%(e)			(1.84	)%			2.11	%(e)			(12.33	)%			24.80	%			(5.70	)%			7.34	%
Based on market price							9.40	%(e)			(15.07	)%			17.71	%(e)			(16.93	)%			26.94	%			(3.49	)%			12.12	%
Ratios to Average Net Assets Applicable to Common Shareholders(f)
Total expenses							3.97	%(g)			3.50	%			2.31	%(g)(h)			1.72	%			1.73	%			2.54	%			2.67	%
Total expenses after fees waived and/or reimbursed							3.96	%(g)			3.49	%			2.31	%(g)(h)			1.72	%			1.73	%			2.54	%			2.67	%
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs(i)(j)							1.20	%(g)			1.17	%			1.16	%(g)(h)			1.15	%			1.14	%			1.13	%			1.13	%
Net investment income to Common Shareholders							4.02	%(g)			4.47	%			5.49	%(g)			4.95	%			5.32	%			4.71	%			5.11	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)						$	140,197			$	139,288			$	150,113			$	149,157			$	178,752			$	150,344			$	167,431
VRDP Shares outstanding at $100,000 liquidation value, end of period (000)						$	76,000			$	76,000			$	76,000			$	76,000			$	76,000			$	76,000			$	76,000
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period						$	270,516	(k)		$	260,549	(k)		$	239,633	(k)		$	296,259	(l)		$	335,200	(l)		$	297,821	(l)		$	320,304	(l)
TOB Trust Certificates, end of period (000)						$	6,219			$	10,757			$	31,506			$	31,735			$	38,607			$	36,908			$	34,595
Asset coverage per $1,000 of TOB Trust Certificates, end of period(m)						$	35,712			$	20,983			$	8,166				N/A				N/A				N/A				N/A
Portfolio turnover rate							14	%			20	%			8	%			17	%			27	%			34	%			31	%

 

(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)	Not annualized.

(f)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g)	Annualized.

(h)

Audit and printing costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the 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 2.40%, 2.39% and 1.24%, 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:

 

 

(k)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

(l)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares) from the Fund’s total assets and dividing this by the liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

 

 

F I N A N C I A L  H I G H L I G H T S		81

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

(m)

Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000.

See notes to financial statements.

 

 

82		2 0 2 4  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

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

						MUA
		Six Months Ended 01/31/24 (unaudited)								Year Ended 07/31/23				Period from 05/01/22 to 07/31/22				Year Ended 04/30/22				Year Ended 04/30/21				Year Ended 04/30/20				Year Ended 04/30/19
Net asset value, beginning of period						$	11.28			$	12.53			$	12.42			$	14.77			$	12.83			$	14.14			$	14.01
Net investment income(a)							0.24				0.50				0.15				0.57				0.62				0.63				0.67
Net realized and unrealized gain (loss)							0.17				(1.04	)			0.10				(2.20	)			1.96				(1.29	)			0.12
Net increase (decrease) from investment operations							0.41				(0.54	)			0.25				(1.63	)			2.58				(0.66	)			0.79
Distributions to Common Shareholders(b)
From net investment income							(0.27	)(c)			(0.50	)			(0.14	)			(0.58	)			(0.64	)			(0.63	)			(0.66	)
From net realized gain							—				(0.18	)			—				(0.14	)			—				(0.02	)			—
Return of capital							—				(0.03	)			—				—				—				—				—
Total distributions to Common Shareholders							(0.27	)			(0.71	)			(0.14	)			(0.72	)			(0.64	)			(0.65	)			(0.66	)
Net asset value, end of period						$	11.42			$	11.28			$	12.53			$	12.42			$	14.77			$	12.83			$	14.14
Market price, end of period						$	10.91			$	10.24			$	12.55			$	11.90			$	15.26			$	12.48			$	14.98
Total Return Applicable to Common Shareholders(d)
Based on net asset value							4.05	%(e)			(3.85	)%			2.00	%(e)			(11.63	)%			20.41	%			(5.03	)%			5.97	%
Based on market price							9.50	%(e)			(12.86	)%			6.63	%(e)			(18.05	)%			27.89	%			(12.80	)%			19.07	%
Ratios to Average Net Assets Applicable to Common Shareholders(f)
Total expenses							2.93	%(g)			2.58	%			1.67	%(g)(h)			0.98	%			0.81	%			0.98	%			1.01	%
Total expenses after fees waived and/or reimbursed							2.92	%(g)			2.57	%			1.67	%(g)(h)			0.98	%			0.80	%			0.98	%			1.01	%
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs(i)(j)							0.95	%(g)			0.89	%			0.88	%(g)(h)			0.77	%			0.71	%			0.69	%			0.70	%
Net investment income to Common Shareholders							4.31	%(g)			4.33	%			4.75	%(g)			3.90	%			4.39	%			4.43	%			4.77	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)						$	439,209			$	436,199			$	481,717			$	475,526			$	552,373			$	463,431			$	509,645
VRDP Shares outstanding at $100,000 liquidation value, end of period (000)						$	175,000			$	175,000			$	175,000			$	175,000			$	—			$	—			$	—
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period						$	344,685	(k)		$	334,645	(k)		$	321,536	(k)		$	371,729	(l)		$	—			$	—			$	—
TOB Trust Certificates, end of period (000)						$	4,500			$	10,897			$	42,444			$	41,712			$	68,781			$	69,232			$	71,659
Asset coverage per $1,000 of TOB Trust Certificates, end of period(m)						$	137,477			$	57,083			$	16,471				N/A				N/A				N/A				N/A
Portfolio turnover rate							8	%			21	%			5	%			24	%			19	%			21	%			19	%

 

(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)	Not annualized.

(f)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g)	Annualized.

(h)

Audit and printing costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the 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 1.69%, 1.69% and 0.90%, 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 01/31/24 (unaudited)								Year Ended 07/31/23				Period from 05/01/22 to 07/31/22				Year Ended 04/30/22				Year Ended 04/30/21				Year Ended 04/30/20
Expense ratios							0.94	%			0.88	%			0.87	%			0.77	%			0.71	%			—	%

 

(k)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

 

 

F I N A N C I A L  H I G H L I G H T S		83

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

(l)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares) from the Fund’s total assets and dividing this by the liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

(m)

Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000.

See notes to financial statements.

 

 

84		2 0 2 4  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

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

 

 

		MUI
				Six Months Ended 01/31/24 (unaudited)										Year Ended 07/31/23					Period from 05/01/22 to 07/31/22					Year Ended 04/30/22					Year Ended 04/30/21					Year Ended 04/30/20					Year Ended 04/30/19
Net asset value, beginning of period								$	13.23				$	13.64				$	13.45				$	16.11				$	14.62				$	15.40				$	14.93
Net investment income(a)									0.22					0.46					0.14					0.56					0.64					0.56					0.56
Net realized and unrealized gain (loss)									0.17					(0.40	)				0.21					(2.57	)				1.48					(0.81	)				0.47
Net increase (decrease) from investment operations									0.39					0.06					0.35					(2.01	)				2.12					(0.25	)				1.03
Distributions to Common Shareholders(b)
From net investment income									(0.25	)(c)				(0.45	)				(0.16	)				(0.65	)				(0.63	)				(0.53	)				(0.53	)
From net realized gain									—					—					—					—					—					—					(0.03	)
Return of capital									—					(0.02	)				—					—					—					—					—
Total distributions to Common Shareholders									(0.25	)				(0.47	)				(0.16	)				(0.65	)				(0.63	)				(0.53	)				(0.56	)
Net asset value, end of period								$	13.37				$	13.23				$	13.64				$	13.45				$	16.11				$	14.62				$	15.40
Market price, end of period								$	11.65				$	11.47				$	12.44				$	12.26				$	15.09				$	13.13				$	13.85
Total Return Applicable to Common Shareholders(d)
Based on net asset value									3.32	%(e)				1.05	%				2.73	%(e)				(12.79	)%				15.08	%				(1.41	)%				7.68	%
Based on market price									3.84	%(e)				(3.95	)%				2.79	%(e)				(15.13	)%				20.02	%				(1.56	)%				11.13	%
Ratios to Average Net Assets Applicable to Common Shareholders(f)
Total expenses									3.99	%(g)				3.46	%(h)				2.25	%(g)(i)				1.67	%(j)				1.58	%				2.31	%				2.63	%
Total expenses after fees waived and/or reimbursed									3.98	%(g)				3.45	%(h)				2.25	%(g)(i)				1.67	%(j)				1.58	%				2.31	%				2.63	%
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs(k)(l)									1.01	%(g)				1.03	%(h)				1.07	%(g)(i)				1.02	%(j)				0.98	%				0.97	%				1.01	%
Net investment income to Common Shareholders									3.39	%(g)				3.54	%				4.06	%(g)				3.63	%				4.05	%				3.59	%				3.73	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)								$	962,181				$	963,901				$	1,007,256				$	993,657				$	617,032				$	559,934				$	589,887
VRDP Shares outstanding at $100,000 liquidation value, end of period (000)								$	561,700				$	561,700				$	561,700				$	561,700				$	—				$	—				$	—
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period								$	256,914	(m)			$	249,597	(m)			$	237,229	(m)			$	276,902	(n)			$	—				$	—				$	—
VMTP Shares outstanding at $100,000 liquidation value, end of period (000)								$	—				$	—				$	—				$	—				$	287,100				$	287,100				$	287,100
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period								$	—				$	—				$	—				$	—				$	314,919	(n)			$	295,031	(n)			$	305,464	(n)
TOB Trust Certificates, end of period (000)								$	51,490				$	82,631				$	172,298				$	180,858				$	93,069				$	92,014				$	93,421
Asset coverage per $1,000 of TOB Trust Certificates, end of period(o)								$	30,590				$	19,459				$	10,104					N/A					N/A					N/A					N/A
Portfolio turnover rate									29	%				47	%				14	%				25	%				13	%				20	%				24	%

 

(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)	Not annualized.

(f)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g)	Annualized.

(h)

Includes non-recurring expenses of proxy 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 3.43%, 3.42% and 1.00%, respectively.

(i)

Audit and printing costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the 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 2.27%, 2.27% and 1.08%, respectively.

(j)

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 1.62%, 1.61% and 0.96%, respectively.

 

 

F I N A N C I A L  H I G H L I G H T S		85

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

(k)	Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP/VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

(l)	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 01/31/24 (unaudited)										Year Ended 07/31/23					Period from 05/01/22 to 07/31/22					Year Ended 04/30/22					Year Ended 04/30/21					Year Ended 04/30/20					Year Ended 04/30/19
Expense ratios									1.00	%				1.02	%				1.06	%				1.02	%				0.98	%				—	%				—	%

 

(m)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

(n)	Calculated by subtracting the Fund’s total liabilities (not including VRDP/VMTP Shares) from the Fund’s total assets and dividing this by the liquidation value of the VRDP/VMTP Shares, and by multiplying the results by 100,000.

(o)

Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000.

See notes to financial statements.

 

 

86		2 0 2 4  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

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

		MYD
				Six Months Ended 01/31/24 (unaudited)										Year Ended 07/31/23					Period from 05/01/22 to 07/31/22					Year Ended 04/30/22					Year Ended 04/30/21					Year Ended 04/30/20					Year Ended 04/30/19
Net asset value, beginning of period								$	12.14				$	12.73				$	12.62				$	15.26				$	13.38				$	14.56				$	14.38
Net investment income(a)									0.23					0.46					0.14					0.64					0.69					0.66					0.73
Net realized and unrealized gain (loss)									0.15					(0.56	)				0.12					(2.63	)				1.86					(1.16	)				0.17
Net increase (decrease) from investment operations									0.38					(0.10	)				0.26					(1.99	)				2.55					(0.50	)				0.90
Distributions to Common Shareholders(b)
From net investment income									(0.25	)(c)				(0.42	)				(0.15	)				(0.65	)				(0.67	)				(0.68	)				(0.72	)
Return of capital									—					(0.07	)				—					—					—					—					—
Total distributions to Common Shareholders									(0.25	)				(0.49	)				(0.15	)				(0.65	)				(0.67	)				(0.68	)				(0.72	)
Net asset value, end of period								$	12.27				$	12.14				$	12.73				$	12.62				$	15.26				$	13.38				$	14.56
Market price, end of period								$	10.70				$	10.50				$	11.72				$	11.43				$	14.62				$	12.29				$	14.15
Total Return Applicable to Common Shareholders(d)
Based on net asset value									3.60	%(e)				(0.08	)%				2.21	%(e)				(13.39	)%				19.61	%				(3.66	)%				6.80	%
Based on market price									4.45	%(e)				(6.13	)%				3.90	%(e)				(18.13	)%				24.76	%				(8.94	)%				13.76	%
Ratios to Average Net Assets Applicable to Common Shareholders(f)
Total expenses									3.16	%(g)				2.75	%				1.87	%(g)(h)				1.35	%				1.36	%				2.07	%				2.27	%
Total expenses after fees waived and/or reimbursed									3.16	%(g)				2.75	%				1.87	%(g)(h)				1.35	%				1.36	%				2.07	%				2.27	%
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs(i)(j)									0.85	%(g)				0.85	%				0.89	%(g)(h)				0.86	%				0.87	%				0.85	%				0.88	%
Net investment income to Common Shareholders									3.88	%(g)				3.86	%				4.47	%(g)				4.26	%				4.66	%				4.49	%				5.10	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)								$	561,042				$	563,470				$	597,369				$	592,131				$	715,876				$	627,798				$	682,832
VRDP Shares outstanding at $100,000 liquidation value, end of period (000)								$	251,400				$	251,400				$	251,400				$	251,400				$	251,400				$	251,400				$	251,400
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period								$	285,323	(k)			$	310,951	(k)			$	262,525	(k)			$	335,533	(l)			$	384,756	(l)			$	349,719	(l)			$	371,612	(l)
TOB Trust Certificates, end of period (000)								$	51,338				$	15,710				$	116,156				$	137,078				$	145,316				$	147,785				$	136,925
Asset coverage per $1,000 of TOB Trust Certificates, end of period(m) .								$	16,820				$	52,852				$	8,305					N/A					N/A					N/A					N/A
Portfolio turnover rate									29	%				46	%				4	%				14	%				14	%				19	%				17	%

 

(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)	Not annualized.

(f)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g)	Annualized.

(h)

Audit and printing costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the 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 1.89%, 1.89% and 0.91%, respectively

(i)	Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP/VMTP 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:

 

 

(k)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

 

 

F I N A N C I A L  H I G H L I G H T S		87

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

(l)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares) from the Fund’s total assets and dividing this by the liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

(m)

Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000.

See notes to financial statements.

 

 

88		2 0 2 4  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

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

		MQY
				Six Months Ended 01/31/24 (unaudited)										Year Ended 07/31/23					Period from 05/01/22 to 07/31/22					Year Ended 04/30/22					Year Ended 04/30/21					Year Ended 04/30/20					Year Ended 04/30/19
Net asset value, beginning of period								$	13.22				$	13.89				$	13.74				$	16.57				$	14.79				$	15.67				$	15.22
Net investment income(a)									0.25					0.54					0.16					0.72					0.75					0.67					0.69
Net realized and unrealized gain (loss)									0.15					(0.64	)				0.17					(2.79	)				1.80					(0.91	)				0.47
Net increase (decrease) from investment operations									0.40					(0.10	)				0.33					(2.07	)				2.55					(0.24	)				1.16
Distributions to Common Shareholders(b)
From net investment income									(0.29	)(c)				(0.51	)				(0.18	)				(0.76	)				(0.77	)				(0.64	)				(0.69	)
From net realized gain									—					—					—					—					—					—					(0.02	)
Return of capital									—					(0.06	)				—					—					—					—					—
Total distributions to Common Shareholders									(0.29	)				(0.57	)				(0.18	)				(0.76	)				(0.77	)				(0.64	)				(0.71	)
Net asset value, end of period								$	13.33				$	13.22				$	13.89				$	13.74				$	16.57				$	14.79				$	15.67
Market price, end of period								$	12.16				$	11.86				$	13.12				$	12.80				$	15.92				$	13.88				$	13.99
Total Return Applicable to Common Shareholders(d)
Based on net asset value									3.44	%(e)(f)				(0.11	)%				2.44	%(f)				(12.93	)%				17.56	%				(1.44	)%				8.42	%
Based on market price									5.18	%(f)				(5.12	)%				3.86	%(f)				(15.58	)%				20.35	%				3.60	%				6.53	%
Ratios to Average Net Assets Applicable to Common Shareholders(g)
Total expenses									3.21	%(h)				2.85	%				1.90	%(h)(i)				1.33	%				1.48	%(j)				2.20	%				2.48	%
Total expenses after fees waived and/or reimbursed									3.21	%(h)				2.85	%				1.90	%(h)(i)				1.33	%				1.47	%(j)				2.20	%				2.48	%
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs(k)(l)									0.83	%(h)				0.86	%				0.89	%(h)(i)				0.85	%				0.95	%(j)				0.90	%				0.93	%
Net investment income to Common Shareholders									3.88	%(h)				4.11	%				4.84	%(h)				4.45	%				4.64	%				4.15	%				4.55	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)								$	957,545				$	960,317				$	1,017,461				$	1,006,613				$	1,212,632				$	454,276				$	481,212
VRDP Shares outstanding at $100,000 liquidation value, end of period (000)								$	450,300				$	450,300				$	450,300				$	450,300				$	450,300				$	176,600				$	176,600
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period								$	284,956	(m)			$	289,952	(m)			$	253,932	(m)			$	323,543	(n)			$	369,294	(n)			$	357,235	(n)			$	372,487	(n)
TOB Trust Certificates, end of period (000)								$	67,414				$	55,257				$	210,679				$	230,928				$	268,075				$	129,475				$	134,198
Asset coverage per $1,000 of TOB Trust Certificates, end of period(o)								$	21,883				$	26,527				$	7,966					N/A					N/A					N/A					N/A
Portfolio turnover rate									28	%				37	%				8	%				17	%				8	%				18	%				21	%

 

(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)	Includes payment from an affiliate, which had no impact on the Fund’s total return.

(f)	Not annualized.

(g)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h)	Annualized.

(i)

Audit and printing costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the 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 1.92%, 1.92% and 0.92%, respectively.

(j)

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 cost would have been 1.42%, 1.41% and 0.90%, respectively.

(k)	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.

(l)	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:

 

 

F I N A N C I A L  H I G H L I G H T S		89

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

 

(m)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

(n)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares) from the Fund’s total assets and dividing this by the liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

(o)

Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000.

See notes to financial statements.

 

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

		MYI
				Six Months Ended 01/31/24 (unaudited)										Year Ended 07/31/23					Year Ended 07/31/22					Year Ended 07/31/21					Year Ended 07/31/20					Year Ended 07/31/19
Net asset value, beginning of period								$	12.51				$	13.04				$	15.64				$	15.03				$	14.81				$	13.98
Net investment income(a)									0.22					0.47					0.60					0.64					0.58					0.58
Net realized and unrealized gain (loss)									0.22					(0.49	)				(2.58	)				0.57					0.17					0.85
Net increase (decrease) from investment operations									0.44					(0.02	)				(1.98	)				1.21					0.75					1.43
Distributions to Common Shareholders(b)
From net investment income									(0.27	)(c)				(0.51	)				(0.62	)				(0.60	)				(0.53	)				(0.60	)
Return of capital									—					(0.00	)(d)				—					—					—					—
Total distributions to Common Shareholders									(0.27	)				(0.51	)				(0.62	)				(0.60	)				(0.53	)				(0.60	)
Net asset value, end of period								$	12.68				$	12.51				$	13.04				$	15.64				$	15.03				$	14.81
Market price, end of period								$	11.28				$	11.13				$	12.24				$	15.12				$	13.55				$	13.44
Total Return Applicable to Common Shareholders(e)
Based on net asset value									3.97	%(f)				0.48	%				(12.66	)%				8.55	%				5.61	%				11.11	%
Based on market price									3.96	%(f)				(4.76	)%				(15.20	)%				16.40	%				4.92	%				13.13	%
Ratios to Average Net Assets Applicable to Common Shareholders(g)
Total expenses									3.60	%(h)				3.15	%				1.55	%				1.37	%				1.95	%				2.40	%
Total expenses after fees waived and/or reimbursed									3.59	%(h)				3.15	%				1.55	%				1.37	%				1.95	%				2.40	%
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs(i)(j)									0.89	%(h)				0.89	%				1.14	%				1.15	%				1.12	%				1.03	%
Net investment income to Common Shareholders									3.67	%(h)				3.80	%				4.18	%				4.22	%				3.93	%				4.16	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)								$	842,980				$	844,604				$	888,808				$	1,066,013				$	1,024,515				$	1,009,375
VRDP Shares outstanding at $100,000 liquidation value, end of period (000)								$	356,400				$	356,400				$	356,400				$	356,400				$	356,400				$	356,400
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period								$	272,331	(k)			$	260,885	(k)			$	248,593	(k)			$	399,106	(l)			$	387,462	(l)			$	383,214	(l)
TOB Trust Certificates, end of period (000)								$	132,763				$	168,574				$	241,747				$	239,177				$	233,968				$	246,471
Asset coverage per $1,000 of TOB Trust Certificates, end of period(m)								$	10,032				$	8,123				$	6,150					N/A					N/A					N/A
Portfolio turnover rate									18	%				49	%				15	%				5	%				18	%				23	%

 

(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)	Amount is less than $0.005 per share.

(e)	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.

(f)	Not annualized.

(g)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h)	Annualized.

(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:

 

 

(k)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

(l)	Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares) from the Fund’s total assets and dividing this by the liquidation value of the VRDP Shares, and by multiplying the results by 100,000.

(m)

Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S		91

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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 Long-Term Municipal Advantage Trust

BTA

Delaware

Diversified

BlackRock MuniAssets Fund, Inc.

MUA

Maryland

Diversified

BlackRock Municipal Income Fund, Inc.

MUI

Maryland

Diversified

BlackRock MuniYield Fund, Inc.

MYD

Maryland

Diversified

BlackRock MuniYield Quality Fund, Inc.

MQY

Maryland

Diversified

BlackRock MuniYield Quality Fund III, Inc.

MYI

Maryland

Diversified

The Boards of Directors and Board of Trustees of the Funds are collectively referred to throughout this report as the “Board”, and the directors/trustees 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.

On October 30, 2023, the Board of Directors of MYI and the Board of Directors/Trustees of each of BlackRock MuniYield Michigan Quality Fund, Inc. (MIY), BlackRock MuniYield Pennsylvania Quality Fund (MPA), BlackRock Virginia Municipal Bond Trust (BHV) and BlackRock Investment Quality Municipal Trust, Inc. (BKN) (collectively, the “Target Funds”) announced the withdrawal of merger proposals that were previously approved by the Boards pursuant to which each of the Target Funds would have been merged into MYI, with MYI continuing as the surviving Fund. While the Board of Directors believe that the mergers would have benefited shareholders for the reasons discussed in the proxy statement, it was determined that the proxy solicitation process and associated costs would be more burdensome and expensive as a result of opposition from an activist shareholder, making the mergers no longer in the best interests of each Fund’s shareholders.

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 funds referred to as the BlackRock Fixed-Income Complex.

 

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 dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.

Bank Overdraft: Certain Funds had outstanding cash disbursements exceeding deposited cash amounts at the custodian during the reporting period. The Funds are obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statements of Operations.

Collateralization: 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.

Distributions: Distributions from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates and made at least annually. The portion of distributions, if any, that exceeds a fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. 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 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. Net appreciation (depreciation) in the value of participants’ deferral accounts is allocated among the participating funds in the BlackRock Fixed-Income Complex and reflected as Directors and Officer expense on the Statements of Operations. The Directors and Officer expense may be negative as a result of a decrease in value of the deferred accounts.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

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.

 

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. The Board has approved the designation of each Fund’s Manager as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. 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 the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

•

Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

 

•

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., 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 Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the 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 Valuation Committee 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 Valuation Committee deems relevant and consistent with the principles of fair value measurement.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs.

 

		Standard Inputs Generally Considered By The Valuation Committee And Third-Party Pricing Services
Market approach		(i)  recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers;
		(ii)   recapitalizations and other transactions across the capital structure; and
		(iii)  market multiples of comparable issuers.
Income approach		(i)  future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks;
		(ii)   quoted prices for similar investments or assets in active markets; and
		(iii)  other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach		(i)  audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company;
		(ii)   changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company;
		(iii)  relevant news and other public sources; and
		(iv)  known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as

deemed appropriate

 

 

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		93

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Notes to Financial Statements (unaudited) (continued)

 

under the circumstances. The use of these valuation techniques involves a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards applicable to other investments held by a Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.

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 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 Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies 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: The 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. The Funds 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, the Funds 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, the Funds assume 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, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions. These types of securities may be considered unfunded and may obligate the Funds to make future cash payments. An unfunded commitment is marked-to-market and any unrealized appreciation (depreciation) is separately presented in the Statements of Assets and Liabilities and Statements of Operations. As of period end, the Funds had the following unfunded commitments:

 

Fund Name		Investment Name				Par				Commitment Amount				Value				Unrealized Appreciation (Depreciation)
MUA			Bond Forward			$	20,907,575			$	20,907,575			$	25,424,473			$	4,516,898
																		$	4,516,898

Municipal BondsTransferred toTOBTrusts: The 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 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.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

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. MUA, MYD, MQY and MYI 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
BTA		$	134,237			$	14,506			$	6,945			$	155,688
MUA			106,933				13,379				3,815				124,127
MUI			1,119,241				115,346				36,865				1,271,452
MYD			554,596				66,575				20,339				641,510
MQY			966,003				108,511				34,994				1,109,508
MYI			2,658,893				287,470				78,151				3,024,514

For the six months ended January 31, 2024, 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
BTA		$	11,226,375			$	6,218,595				4.58% — 4.85	%		$	7,398,416				4.19	%
MUA			8,557,986				4,500,000				4.58  — 4.58				5,907,803				4.18
MUI			95,689,456				51,489,875				4.58  — 4.85				61,264,506				4.13
MYD			96,618,164				51,338,092				4.58  — 4.58				32,681,387				3.90
MQY			139,485,924				67,413,610				4.58  — 4.69				55,054,907				4.01
MYI			277,417,212				132,763,095				4.55  — 4.70				146,901,106				4.10

 

(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, 2024, 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, 2024.

 

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 over-the-counter (“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).

 

 

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		95

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Notes to Financial Statements (unaudited) (continued)

 

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, except BTA and MUI, pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net assets:

 

		MUA				MYD				MQY				MYI
Investment advisory fees			0.55	%			0.50	%			0.50	%			0.50%

For such services, BTA pays the Manager a monthly fee of 1.00% at an annual rate equal to a percentage of the average weekly value of the Fund’s net assets.

For such services, MUI pays the Manager a monthly fee of 0.55% of (i) the average daily value of MUI’s net assets and (ii) the proceeds of any outstanding debt securities and borrowings used for leverage.

For purposes of calculating these fees, with respect to each Fund other than BTA, “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.

For purposes of calculating this fee, with respect to BTA, “net assets” mean the total assets of the Fund minus the sum of its accrued liabilities (which includes liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares).

Distribution Fees: MUA has entered into a Distribution Agreement with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager, to provide for distribution of MUA’s common shares on a reasonable best efforts basis through an equity shelf offering (a “Shelf Offering”) (the “Distribution Agreement”). Pursuant to the Distribution Agreement, BRIL will receive commissions with respect to sales of common shares at a commission rate of 1.00% of the gross proceeds of the sale of MUA’s common shares and a portion of such commission is re-allowed to broker-dealers engaged by BRIL. The commissions retained by BRIL during the period ended January 31, 2024 amounted to $0.

Expense Waivers and Reimbursements: 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, 2025. 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. 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, 2024, the amounts waived were as follows:

 

Fund Name		Fees Waived and/or Reimbursed by the Manager
BTA		$	2,659
MUA			25,640
MUI			16,081
MYD			4,500
MQY			18,387
MYI			11,871

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, 2025. 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, 2024, there were no fees waived by the Manager pursuant to this arrangement.

Directors and Officers: Certain directors and/or officers of the Funds 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)

 

Other Transactions: During the period ended January 31, 2024, MQY received a reimbursement of $6,492, from an affiliate, which is included in payment by affiliate in the Statements of Operations, related to an operating event.

 

7.	PURCHASES AND SALES

For the six months ended January 31, 2024, purchases and sales of investments, excluding short-term securities, were as follows:

 

Fund Name		Purchases				Sales
BTA		$	32,674,332			$	29,332,148
MUA			71,540,236				42,138,066
MUI			436,064,051				475,354,094
MYD			266,214,675				231,113,189
MQY			383,581,113				397,076,719
MYI			226,956,266				275,826,348

 

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 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, 2024, 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, 2023, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

Fund Name		Non-Expiring Capital Loss Carryforwards(a)
BTA		$	(9,842,900	)
MUA			(37,435,486	)
MUI			(92,753,418	)
MYD			(62,042,247	)
MQY			(90,538,839	)
MYI			(64,501,068	)

 

(a)

Amounts available to offset future realized capital gains.

As of January 31, 2024, 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)
BTA		$	216,586,475			$	6,406,625			$	(9,460,291	)		$	(3,053,666	)
MUA			640,405,201				17,405,030				(53,749,782	)			(36,344,752	)
MUI			1,465,143,506				56,620,779				(10,082,750	)			46,538,029
MYD			772,781,603				40,257,641				(8,729,936	)			31,527,705
MQY			1,350,777,695				66,519,391				(14,043,352	)			52,476,039
MYI			1,132,554,376				65,129,070				(9,269,720	)			55,859,350

 

9.	PRINCIPAL RISKS

In the normal course of business, the 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.

 

 

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		97

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Notes to Financial Statements (unaudited) (continued)

 

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.

As 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.

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.

Illiquidity Risk: 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 NAV 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.

Valuation Risk: The price a Fund could receive upon the sale of any particular portfolio investment may differ from a Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore a Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. A Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

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.

Geographic/Asset Class 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 each Fund’s portfolio are disclosed in its Schedule of Investments.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

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 high yield securities. High yield securities that are rated below investment-grade (commonly referred to as “junk bonds”) or are unrated may be deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield securities are subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have redemption features.

The 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 decrease as interest rates rise and increase as interest rates fall. The Funds may be subject to a greater risk of rising interest rates due to the period of historically low interest rates that ended in March 2022. The Federal Reserve has raised the federal funds rate as part of its efforts to address inflation. There is a risk that interest rates will continue to rise, which will likely drive down the prices of bonds and other fixed-income securities, and could negatively impact the Funds’ performance.

The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.

 

10.	CAPITAL SHARE TRANSACTIONS

Each Fund, except for BTA, is authorized to issue 200 million shares, all of which were initially classified as Common Shares. BTA is authorized to issue an unlimited number of shares, all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10, except for BTA, which is $0.001. The par value for MYI Preferred Shares outstanding is $0.10. Each Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders.

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

Fund Name		Six Months Ended 01/31/24				Year Ended 07/31/23
BTA			—				2,033
MUA			—				13,454

For the six months ended January 31, 2024, shares issued and outstanding remained constant for BTA.

The Funds participate in an open market share repurchase program (the “Repurchase Program”). From December 1, 2022 through November 30, 2023, 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, 2022, subject to certain conditions. From December 1, 2023 through November 30, 2024, 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, 2023, subject to certain conditions. The Repurchase Program has an accretive effect as shares are purchased at a discount to the Fund’s NAV. There is no assurance that the Funds will purchase shares in any particular amounts. For the six months ended January 31, 2024 and year ended July 31, 2023, BTA did not repurchase any shares. For the year ended July 31, 2023, MUA did not repurchase any shares.

The total cost of the shares repurchased is reflected in Funds’ Statements of Changes in Net Assets. For the periods shown, shares repurchased and cost, including transaction costs, were as follows:

 

		MUA
		Shares				Amounts
Six Months Ended January 31, 2024			217,660			$	1,967,553
		MUI
		Shares				Amounts
Six Months Ended January 31, 2024			875,847			$	9,262,292
Year Ended July 31, 2023			1,002,979				11,621,508

 

 

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Notes to Financial Statements (unaudited) (continued)

 

		MYD
		Shares				Amounts
Six Months Ended January 31, 2024			676,815			$	6,452,972
Year Ended July 31, 2023			509,369				5,377,139
		MQY
		Shares				Amounts
Six Months Ended January 31, 2024			799,712			$	8,490,029
Year Ended July 31, 2023			609,349				7,063,733
		MYI
		Shares				Amounts
Six Months Ended January 31, 2024			1,038,509			$	10,490,104
Year Ended July 31, 2023			644,921				7,043,454

MUA has filed a prospectus with the SEC allowing it to issue an additional 5,500,000 Common Shares through a Shelf Offering. Under the Shelf Offering, MUA, subject to market conditions, may raise additional equity capital from time to time in varying amounts and utilizing various offering methods at a net price at or above the Fund’s NAV per Common Share (calculated within 48 hours of pricing). As of period end, 4,767,963 Common Shares remain available for issuance under the Shelf Offering. For the period ended January 31, 2024, Common Shares issued and outstanding under the Shelf Offering remained constant. See Additional Information - Shelf Offering Program for additional information.

Initial costs incurred by MUA in connection with its Shelf Offering are recorded as “Deferred offering costs” in the Statements of Assets and Liabilities. As shares are sold, a portion of the costs attributable to the shares sold will be charged against paid-in-capital. Any remaining deferred charges at the end of the Shelf Offering period will be charged to expense.

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

The Funds (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

BTA

10/29/15

760

$

76,000,000

11/01/45

MUA

12/15/21

1,750

175,000,000

12/15/51

MUI

04/07/22

2,871

287,100,000

04/07/52

04/11/22

2,746

274,600,000

04/07/52

MYD

06/30/11

2,514

251,400,000

07/01/41

MQY

09/15/11

1,766

176,600,000

10/01/41

04/19/21

2,737

273,700,000

10/01/41

MYI

05/19/11

3,564

356,400,000

06/01/41

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.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

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:

 

BTA

MUA

MUI

MYD

MQY

MYI

Expiration date

11/30/24

04/30/24

11/30/24

11/30/24

07/04/24

07/07/24

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
BTA			Aa2				A
MUA			Aa2				N/A
MUI			Aa1				AA
MYD			Aa1				AA
MQY			Aa1				AA
MYI			Aa1				AA

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/are set to commence a special rate period:

 

Fund Name		Commencement Date				Expiration Date as of Period Ended 01/31/24
BTA			10/29/15				11/15/24
MUA			12/15/21				04/15/24
MUI			04/07/22				11/15/24
MYD			04/17/14				11/15/24
MQY			10/22/15				06/19/24
MYI			06/22/22				06/19/24

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.

For the six months ended January 31, 2024, the annualized dividend rate for the VRDP Shares were as follows:

 

		BTA				MUA				MUI				MYD				MQY				MYI
Dividend rates			4.43	%			4.58	%			4.42	%			4.42	%			4.32	%			4.44	%

For the six months ended January 31, 2024, VRDP Shares issued and outstanding of each VRDP Fund remained constant.

 

 

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		101

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Notes to Financial Statements (unaudited) (continued)

 

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
BTA		$	1,691,333			$	8,080
MUA			4,029,663				2,756
MUI			12,490,268				8,443
MYD			5,590,083				8,072
MQY			9,788,976				29,640
MYI			7,955,723				14,853

 

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 as follows:

 

Fund Name

Declaration Date

Record Date

Payable/ Paid Date

Dividend Per Common Share

BTA

11/14/23

01/12/24

02/01/24

$

0.043500

11/14/23

02/15/24

03/01/24

0.043500

03/01/24

03/15/24

04/01/24

0.043500

MUA

11/14/23

01/12/24

02/01/24

0.055500

11/14/23

02/15/24

03/01/24

0.055500

03/01/24

03/15/24

04/01/24

0.055500

MUI

11/14/23

01/12/24

02/01/24

0.055000

11/14/23

02/15/24

03/01/24

0.055000

03/01/24

03/15/24

04/01/24

0.055000

MYD

11/14/23

01/12/24

02/01/24

0.052500

11/14/23

02/15/24

03/01/24

0.052500

03/01/24

03/15/24

04/01/24

0.052500

MQY

11/14/23

01/12/24

02/01/24

0.058000

11/14/23

02/15/24

03/01/24

0.058000

03/01/24

03/15/24

04/01/24

0.058000

MYI

11/14/23

01/12/24

02/01/24

0.055500

11/14/23

02/15/24

03/01/24

0.055500

03/01/24

03/15/24

04/01/24

0.055500

The Funds declared and paid or will pay distributions to Preferred Shareholders as follows:

 

Preferred Shares(a)

Fund Name

Shares

Series

Declared

BTA

VRDP

W-7

$

258,919

MUA

VRDP

W-7

614,221

MUI

VRDP

W-7

1,913,617

MYD

VRDP

W-7

856,477

MQY

VRDP

W-7

1,498,416

MYI

VRDP

W-7

1,219,842

 

(a)

Dividends declared for period February 1, 2024 to February 29, 2024.

 

 

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Additional Information

 

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.

Environmental, Social and Governance (“ESG”) Integration

Although the Funds do not seek to implement a specific sustainability objective, strategy or process unless otherwise disclosed, Fund management will consider ESG factors as part of the investment process for the Funds. Fund management views ESG integration as the practice of incorporating financially material ESG data or information into investment processes with the objective of enhancing risk-adjusted returns. These ESG considerations will vary depending on the Funds’ 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. The ESG characteristics utilized in the Funds’ 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. Certain of these considerations may affect the Funds’ exposure to certain companies or industries. While Fund management views ESG considerations as having the potential to contribute to the Funds’ long-term performance, there is no guarantee that such results will be achieved.

Dividend Policy

Each Fund’s dividend policy is to make regular monthly cash distributions to holders of its common shares (stated in terms of a fixed cents per common share dividend distribution rate). Each Fund intends to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In addition, in any monthly period, in order to maintain its declared distribution amount, each Fund may pay out more or less than the entire amount of net investment income earned in any particular month. In the event a Fund distributes more than its net investment income during any yearly period, such distributions may also come from sources other than net income, including a return of capital. 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, other than MUA, 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.

MUA’s Statement of Additional Information includes additional information about its Board and is available, without charge upon request by calling (800) 882-0052.

The following information is a summary of certain changes since July 31, 2023. This information may not reflect all of the changes that have occurred since you purchased the relevant Fund.

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.

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.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports and, for MUA only, prospectuses, by enrolling in the electronic delivery program. Electronic copies of shareholder reports and, for MUA only, prospectuses, 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, including for MUA only, prospectuses, 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.

 

 

A D D I T I O N A L  I N F O R M A T I O N		103

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Additional Information (continued)

 

Availability of Quarterly Schedule of Investments

The Funds file their complete schedules 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, Procedures and Voting Records

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and 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 without charge, upon request (1) by calling (800) 882-0052; (2) on the BlackRock website at blackrock.com; and (3) 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.

Shelf Offering Program

From time to time, MUA may seek to raise additional equity capital through a Shelf Offering. In a Shelf Offering, MUA may, subject to market conditions, raise additional equity capital by issuing new Common Shares from time to time in varying amounts at a net price at or above MUA’s net asset value (“NAV”) per Common Share (calculated within 48 hours of pricing). While any such Shelf Offering may allow MUA to pursue additional investment opportunities without the need to sell existing portfolio investments, it could also entail risks – including that the issuance of additional Common Shares may limit the extent to which the Common Shares are able to trade at a premium to NAV in the secondary market.

On August 26, 2021, MUA filed a final prospectus with the SEC in connection with its Shelf Offering. This report and the prospectus of MUA are not offers to sell MUA Common Shares or solicitations of an offer to buy MUA Common Shares in any jurisdiction where such offers or sales are not permitted. The prospectus of MUA contains important information about the Fund, including its investment objective, risks, charges and expenses. Investors are urged to read the prospectus of MUA carefully and in its entirety before investing. Copies of the final prospectus for MUA can be obtained from BlackRock at blackrock.com.

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.

Fund and Service Providers

 

Investment Adviser		Transfer Agent
BlackRock Advisors, LLC		Computershare Trust Company, N.A.
Wilmington, DE 19809		Canton, MA 02021
Accounting Agent and Custodian		VRDP Liquidity Provider
State Street Bank and Trust Company		Bank of America, N.A.(a)
Boston, MA 02114		New York, NY 10036

 

 

104		2 0 2 4  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

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Additional Information (continued)

 

Fund and Service Providers (continued)

 

The Toronto-Dominion Bank(b)		VRDP Tender and Paying Agent
New York, NY 10019		The Bank of New York Mellon
		New York, NY 10286
Wells Fargo Bank, N.A.(c)
San Francisco, CA 94104		Independent Registered Public Accounting Firm
		Deloitte & Touche LLP
VRDP Remarketing Agent		Boston, MA 02116
BofA Securities, Inc.(a)
New York, NY 10036		Legal Counsel
		Willkie Farr & Gallagher LLP
TD Securities (USA) LLC(b)		New York, NY 10019
New York, NY 10019
		Address of the Funds
Wells Fargo Securities, LLC(c)		100 Bellevue Parkway
Charlotte, NC 28202		Wilmington, DE 19809
(a)  For BTA, MUA, MUI and MYD.
(b)  For MYI.
(c)  For MQY.

 

 

A D D I T I O N A L  I N F O R M A T I O N		105

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Glossary of Terms Used in this Report

 

 

 

106		2 0 2 4  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

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THIS PAGE INTENTIONALLY LEFT BLANK.

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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 NAV 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.

CEMYMA-01/24-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(a) 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 to this semi-annual report

---

Item 13 –

Recovery of Erroneously Awarded Compensation – Not Applicable

 

Item 14 –

Exhibits attached hereto

(a)(1) Code of Ethics – Not Applicable to this semi-annual report

(a)(2) Section 302 Certifications are attached

(a)(3) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a)(4) Change in Registrant’s independent public accountant – Not Applicable

(b) Section 906 Certifications are attached

 

---

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 Long-Term Municipal Advantage Trust

 

		By:		/s/ John M. Perlowski
				John M. Perlowski
				Chief Executive Officer (principal executive officer) of
				BlackRock Long-Term Municipal Advantage Trust

Date: November 22, 2024

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 Long-Term Municipal Advantage Trust

Date: November 22, 2024

 

		By:		/s/ Trent Walker
				Trent Walker
				Chief Financial Officer (principal financial officer) of
				BlackRock Long-Term Municipal Advantage Trust

Date: November 22, 2024

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

 

 

I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock Long-Term Municipal Advantage Trust, certify that:

1.   I have reviewed this report on Form N-CSR of BlackRock Long-Term Municipal Advantage Trust;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)   designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)   designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)   disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.   The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)   all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 22, 2024

/s/ John M. Perlowski  

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Long-Term Municipal Advantage Trust

---

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

 

 

I, Trent Walker, Chief Financial Officer (principal financial officer) of BlackRock Long-Term Municipal Advantage Trust, certify that:

1.   I have reviewed this report on Form N-CSR of BlackRock Long-Term Municipal Advantage Trust;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)   designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)   designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)   disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.   The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)   all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 22, 2024

/s/ Trent Walker  

Trent Walker

Chief Financial Officer (principal financial officer) of

BlackRock Long-Term Municipal Advantage Trust

Exhibit 99.906CERT

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and

Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock Long-Term Municipal Advantage Trust (the “Registrant”), hereby certifies, to the best of his knowledge, that the Registrant’s Report on Form N-CSR for the period ended January 31, 2024 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: November 22, 2024

/s/ John M. Perlowski  

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Long-Term Municipal Advantage Trust

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock Long-Term Municipal Advantage Trust (the “Registrant”), hereby certifies, to the best of his knowledge, that the Registrant’s Report on Form N-CSR for the period ended January 31, 2024 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: November 22, 2024

/s/ Trent Walker  

Trent Walker

Chief Financial Officer (principal financial officer) of

BlackRock Long-Term Municipal Advantage Trust

This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission.

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