BLACKROCK MUNIYIELD CALIFORNIA FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06499

Name of Fund: BlackRock MuniYield California Fund, Inc. (MYC)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield California Fund, Inc., 55 East 52nd Street, New York, NY 10055

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

Date of fiscal year end: 07/31/2018

Date of reporting period: 01/31/2018


Item 1 – Report to Stockholders

 


JANUARY 31, 2018

 

SEMI-ANNUAL REPORT (UNAUDITED)

  LOGO

 

BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

BlackRock MuniYield Arizona Fund, Inc. (MZA)

BlackRock MuniYield California Fund, Inc. (MYC)

BlackRock MuniYield Investment Fund (MYF)

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

In the 12 months ended January 31, 2018, assets with higher risk and return potential, such as stocks and high-yield bonds, continued to deliver strong performance. The equity market advanced despite geopolitical uncertainty and relatively high valuations, while bond returns were constrained by rising interest rates.

Emerging market stocks posted the strongest performance, as accelerating growth in China, the second largest economy in the world and the most influential of all developing economies, improved the outlook for corporate profits and economic growth across most developing nations. Chinese demand for commodities and other raw materials allayed concerns about the country’s banking system, leading to rising equity prices and foreign investment flows.

Rising interest rates worked against high-quality assets with more interest rate sensitivity. Consequently, the 10-year U.S. Treasury — a bellwether of the bond market — posted a modest negative return, as rising energy prices, higher wages, and steady job growth drove expectations of higher inflation and interest rate increases by the U.S. Federal Reserve (the “Fed”).

The market’s performance reflected reflationary expectations early in the reporting period, as investors began to sense that a global recovery was afoot. Thereafter, many countries experienced sustained and synchronized growth for the first time since the financial crisis. Growth rates and inflation are still relatively low, but they are finally rising together. Consensus expectations for global economic growth also rose, as long-anticipated fiscal stimulus and capital spending plans indicated that new sources of demand could extend the current economic cycle.

The Fed responded to these positive developments by increasing short-term interest rates three times during the year. In October 2017, the Fed also reduced its $4.5 trillion balance sheet by $10 billion, while setting expectations for additional modest reductions and rate hikes in 2018.

By contrast, the European Central Bank (“ECB”) and the Bank of Japan (“BoJ”) continued to expand their balance sheets despite nascent signs of sustained economic growth. Rising global growth and inflation, as well as limited bond supply, put steady pressure on other central banks to follow in the Fed’s footsteps. In October 2017, the ECB announced plans to cut its bond purchases in half for 2018, while the BoJ reiterated its commitment to economic stimulus, as the country’s inflation rate remained below 2.0%.

Rising consumer confidence and improving business sentiment are driving momentum for the U.S. economy. If the Fed maintains a measured pace of stimulus reduction, to the extent that inflation rises, it’s likely to be accompanied by rising real growth and higher wages. That could lead to a favorable combination of moderately higher inflation, steadily rising interest rates, and improving growth in 2018. We continue to believe the primary risks to the economic expansion are trade protectionism, rapidly rising interest rates, and geopolitical tension.

In December 2017, Congress passed a sweeping tax reform bill. The U.S. tax overhaul is likely to accentuate the existing reflationary themes, including faster growth and rising interest rates. Changing the corporate tax rate to a flat 21% will create many winners and losers among high-and-low tax companies, while the windfall from lower taxes could boost business and consumer spending.

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of January 31, 2018
     6-month   12-month

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

  15.43%   26.41%

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

  11.23   17.18

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

  12.14   27.60

Emerging market equities
(MSCI Emerging Markets Index)

  18.51   41.01

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

  0.58   0.93

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

  (2.74)   (0.47)

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

  (0.35)   2.15

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

  0.01   3.41

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

  1.94   6.60
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT


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 Summaries

     6  

Financial Statements:

  

Schedules of Investments

     16  

Statements of Assets and Liabilities

     39  

Statements of Operations

     40  

Statements of Changes in Net Assets

     41  

Statements of Cash Flows

     44  

Financial Highlights

     45  

Notes to Financial Statements

     50  

Director and Officer Information

     59  

Additional Information

     60  

Glossary of Terms Used in this Report

     62  

 

 

     3  


Municipal Market Overview  For the Reporting Period Ended January 31, 2018

 

Municipal Market Conditions

Municipal bonds experienced positive performance during the period alongside a favorable technical backdrop and a flattening yield curve resulting from continued Fed monetary policy normalization and largely muted inflation expectations. Ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in continued demand for fixed income investments. More specifically, investors favored the tax-exempt income, diversification, quality, and value of municipal bonds amid fiscal policy uncertainty, which saw tax reform ultimately lower the top individual tax rate just 2.6% while eliminating deductions and increasing demand for tax shelter. During the 12 months ended January 31, 2018, municipal bond funds experienced net inflows of approximately $33 billion (based on data from the Investment Company Institute).

 

For the same 12-month period, total new issuance remained elevated from a historical perspective at $394 billion (though well below the robust $455 billion issued in the prior 12-month period). Notably, issuance in December posted the highest monthly total on record at $56 billion, as issuers rushed deals to market ahead of the expected elimination of the tax-exemption for advanced refunding bonds and possibly private activity bonds (PABs). Ultimately, the final version of the Tax Cuts and Jobs Act left PABs unchanged, though the elimination of advanced refundings will likely suppress supply going forward, providing a powerful technical.

  S&P Municipal Bond Index
  Total Returns as of January 31, 2018
    6 months: 0.01%
  12 months: 3.41%
 

A Closer Look at Yields

 

LOGO

From January 31, 2017 to January 31, 2018, yields on AAA-rated 30-year municipal bonds decreased by 17 basis points (“bps”) from 3.08% to 2.91%, while 10-year rates increased by 3 bps from 2.32% to 2.35% and 5-year rates increased by 20 bps from 1.63% to 1.83% (as measured by Thomson Municipal Market Data). The municipal yield curve flattened significantly over the 12-month period with the spread between 2- and 30-year maturities flattening by 64 bps.

During the same time period, on a relative basis, tax-exempt municipal bonds strongly outperformed U.S. Treasuries with the greatest outperformance experienced in the front and intermediate portions of the yield curve. Notably, January saw interest rates move rapidly higher alongside strong global growth and a more hawkish bias from global central banks. The relative positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities became increasingly scarce. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

The majority of municipal credits remain strong, despite well-publicized distress among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — have exhibited markedly improved credit fundamentals during the slow national recovery. However, several states with the largest unfunded pension liabilities have seen their bond prices decline noticeably and remain vulnerable to additional price deterioration. On the local level, Chicago’s credit quality downgrade is an outlier relative to other cities due to its larger pension liability and inadequate funding remedies. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of January 31, 2018, 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 Standard & Poor’s 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 no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

 

4    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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 the Funds (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Funds’ shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings 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 the Funds’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds had not used leverage. Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of the Funds’ obligations under their respective leverage arrangements 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 the Funds’ 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 the Funds’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Funds’ investment adviser will be higher than if the Funds did not use leverage.

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

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

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

Derivative Financial Instruments

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

 

 

THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS      5  


Fund Summary  as of January 31, 2018    BlackRock Muni New York Intermediate Duration Fund, Inc.

 

Fund Overview

BlackRock Muni New York Intermediate Duration Fund, Inc.’s (MNE) (the “Fund”) investment objective is to provide common shareholders with high current income exempt from U.S. federal income tax and New York State and New York City personal income taxes. 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 tax (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. Under normal market conditions, the Fund invests at least 75% of its assets in municipal obligations that are investment grade quality, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with a duration of three to ten 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 (“NYSE”)

  MNE

Initial Offering Date

  August 1, 2003

Yield on Closing Market Price as of January 31, 2018 ($13.31)(a)

  4.01%

Tax Equivalent Yield(b)

  7.96%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Economic Leverage as of January 31, 2018(d)

  38%

 

  (a)  Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 49.62%, 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 monthly distribution per Common Share, declared on March 1, 2018, was decreased to $0.04 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.  
  (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 accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended January 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MNE(a)(b)

    (3.55 )%       (0.22 )% 

Lipper Intermediate Municipal Debt Funds(c)

    (3.67      (0.23

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c)  Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  U.S. municipal bonds produced generally flat returns during the period, with income offsetting a modest decline in prices. Stronger economic growth and concerns about emerging inflation pressures fueled expectations that the Fed would continue to tighten monetary policy, dampening returns across the fixed-income market.

 

  New York municipal bonds underperformed the national market. New issuance in the state was relatively robust compared to the nation as a whole, which contributed to the weaker performance. Unfortunately, much of the new issuance was concentrated in several large issuers in which the Fund already had positions, thereby limiting the opportunity set. New York’s overall economic trends continued to improve, albeit at a rate slightly below that national level. However, the state continued to enjoy a broad and diverse economic base. One area of potential concern was the capping of deductibility of state and local taxes due to recently enacted Federal tax-reform policies, which may reduce New York’s ability to raise taxes in the future.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

 

  The Fund’s investments in bonds with maturities between 12 and 18 years contributed to results, as intermediate-term bonds experienced smaller increases in yield than shorter-dated issues. In addition, intermediate-term debt generated higher income relative to shorter maturities.

 

  Allocations to the education sector and AA rated issues were the most additive to performance. Positions in BBB and non-investment grade debt also helped returns, as lower-rated bonds generally outperformed higher-rated securities. Conversely, positions in higher-quality securities underperformed.

 

  The use of leverage aided performance by augmenting portfolio income, but it also amplified the impact of declining bond prices.

 

 

6    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of January 31, 2018 (continued)    BlackRock Muni New York Intermediate Duration Fund, Inc.

 

 

  The Fund’s allocation to shorter-dated bonds detracted from returns. Positions in pre-refunded securities, which are both high-quality and shorter duration, also detracted. (Duration is a measure of interest-rate sensitivity.)

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.

Market Price and Net Asset Value Per Share Summary

 

     01/31/18      07/31/17      Change      High      Low  

Market Price

  $ 13.31      $ 14.07        (5.40 )%     $ 14.43      $ 13.09  

Net Asset Value

    15.14        15.47        (2.13      15.64        15.14  

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

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector

 

01/31/18

   

07/31/17

 

County/City/Special District/School District

    23     21

Transportation

    23       22  

Education

    21       24  

Health

    10       10  

State

    10       10  

Utilities

    7       6  

Corporate

    3       3  

Housing

    2       3  

Tobacco

    1       1  

 

    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.  

CALL/MATURITY SCHEDULE (b)

 

Calendar Year Ended December 31,

       

2018

    6

2019

    8  

2020

    6  

2021

    16  

2022

    6  

 

  (b)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating

 

01/31/18

   

07/31/17

 

AAA/Aaa

    11     11

AA/Aa

    49       50  

A

    20       20  

BBB/Baa

    13       13  

BB/Ba

    2       2  

N/R

    5       4  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) 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.  
 

 

 

FUND SUMMARY      7  


Fund Summary  as of January 31, 2018    BlackRock MuniYield Arizona Fund, Inc.

 

Fund Overview

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

  MZA

Initial Offering Date

  October 29, 1993

Yield on Closing Market Price as of January 31, 2018 ($16.74)(a)

  4.44%

Tax Equivalent Yield(b)

  8.12%

Current Monthly Distribution per Common Share(c)

  $0.0620

Current Annualized Distribution per Common Share(c)

  $0.7440

Economic Leverage as of January 31, 2018(d)

  38%

 

  (a)  Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 45.34%, 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 monthly distribution per Common Share, declared on March 1, 2018, was decreased to $0.052 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.  
  (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 accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended January 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MZA(a)(b)

    3.44      0.12

Lipper Other States Municipal Debt Funds(c)

    (4.74      (0.22

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Fund’s premium to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  U.S. municipal bonds produced generally flat returns during the period, with income offsetting a modest decline in prices. Stronger economic growth and concerns about emerging inflation pressures fueled expectations that the Fed would continue to tighten monetary policy, dampening returns across the fixed-income market.

 

  Arizona municipal bonds underperformed national municipals. The state’s economy continued to improve, highlighted by positive demographic trends. NAFTA negotiations represented one potential source of uncertainty for Arizona, as the possible negative ramifications of a full U.S. departure would disproportionately impact its economic and employment outlook.

 

  Portfolio income, enhanced by leverage, made the largest positive contribution to performance at a time in which bond prices fell. However, the use of leverage also exacerbated the effect of market weakness.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

 

  Exposure to lower-rated issues (those rated A and below) helped results as this market segment outperformed higher-rated bonds.

 

  The Fund’s positions in shorter-term bonds proved detrimental as rates increased the most in the two- to five-year portion of the yield curve. This allocation is largely comprised of advance-refunded bonds purchased in a higher-yield environment. Conversely, the Fund’s exposure to the long end of the yield curve was beneficial as rates increased less in this area. The Fund’s position in a specific tobacco sector security also detracted from performance, as did its underweight in the utilities sector.

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

 

 

8    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of January 31, 2018 (continued)    BlackRock MuniYield Arizona Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/18      07/31/17      Change      High      Low  

Market Price

  $ 16.74      $ 16.59        0.90    $ 17.40      $ 14.67  

Net Asset Value

    14.22        14.56        (2.34      14.69        14.22  

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

LOGO

Overview of the Fund’s Total Investments *

 

 

SECTOR ALLOCATION

 

Sector

 

01/31/18

   

07/31/17

 

Utilities

    24     21

Education

    23       23  

County/City/Special District/School District

    17       19  

Corporate

    12       11  

Health

    11       12  

State

    9       9  

Transportation

    3       3  

Tobacco

    1       2  

Housing(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.  

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    19

2019

    8  

2020

    8  

2021

    10  

2022

    7  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating

 

01/31/18

   

07/31/17

 

AAA/Aaa

    9     9

AA/Aa

    55       55  

A

    15       15  

BBB/Baa

    10       10  

BB/Ba

    7       8  

N/R

    4       3  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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.  
  (b)  Represents less than 1% of the Fund’s total investments.  
 

 

 

FUND SUMMARY      9  


Fund Summary  as of January 31, 2018    BlackRock MuniYield California Fund, Inc.

 

Fund Overview

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

  MYC

Initial Offering Date

  February 28, 1992

Yield on Closing Market Price as of January 31, 2018 ($14.15)(a)

  5.26%

Tax Equivalent Yield(b)

  11.46%

Current Monthly Distribution per Common Share(c)

  $0.0620

Current Annualized Distribution per Common Share(c)

  $0.7440

Economic Leverage as of January 31, 2018(d)

  41%

 

  (a)  Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 54.10%, 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 monthly distribution per Common Share, declared on March 1, 2018, was decreased to $0.052 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.  
  (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 accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended January 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYC(a)(b)

    (5.64 )%       0.27

Lipper California Municipal Debt Funds(c)

    (5.62      0.03  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c)  Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  U.S. municipal bonds produced generally flat returns during the period, with income offsetting a modest decline in prices. Stronger economic growth and concerns about emerging inflation pressures fueled expectations that the U.S. Federal Reserve would continue to tighten monetary policy, dampening returns across the fixed-income market.

 

  California underperformed the national indices due to questions about the long-term effects the tax-reform bill could have on the supply-and-demand profile of the state’s municipal market.

 

  Portfolio income contributed to performance by offsetting the downturn in bond prices. The use of leverage helped boost the Fund’s income, but it also amplified the effect of market weakness.

 

  Holdings that the Fund purchased when rates were higher also aided performance due to their generous income and lower sensitivity to the negative effects of rising interest rates.

 

  The Fund’s cash reserves, while minimal, helped dampen the effect market volatility as yields rose.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

 

  Holdings in more highly-rated investment-grade bonds (those rated AA and AAA) lagged non-investment grade holdings, as fund flows into high yield products led to greater price appreciation for lower-rated issues. This trend was most pronounced in the beginning of the period but less so in January once high yield fund flows turned negative.

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.

 

 

10    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of January 31, 2018 (continued)    BlackRock MuniYield California Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/18      07/31/17      Change      High      Low  

Market Price

  $ 14.15      $ 15.43        (8.30 )%     $ 15.71      $ 14.11  

Net Asset Value

    15.21        15.61        (2.56      15.79        15.21  

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

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector

 

01/31/18

   

07/31/17

 

County/City/Special District/School District

    39     40

Health

    15       16  

Transportation

    14       12  

Education

    14       14  

State

    6       6  

Utilities

    5       6  

Tobacco

    5       4  

Corporate

    1       1  

Housing

    1       1  

 

    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.  

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    13

2019

    13  

2020

    7  

2021

    11  

2022

    1  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating

 

01/31/18

   

07/31/17

 

AAA/Aaa

    6     5

AA/Aa

    66       68  

A

    21       21  

BBB/Baa

    2       1  

BB/Ba

    1       1  

B/B

    3       3  

N/R(b)

    1       1  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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.  
  (b)  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, 2018 and July 31, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.  
 

 

 

FUND SUMMARY      11  


Fund Summary  as of January 31, 2018    BlackRock MuniYield Investment Fund

 

Fund Overview

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

  MYF

Initial Offering Date

  February 28, 1992

Yield on Closing Market Price as of January 31, 2018 ($14.08)(a)

  5.92%

Tax Equivalent Yield(b)

  10.00%

Current Monthly Distribution per Common Share(c)

  $0.0695

Current Annualized Distribution per Common Share(c)

  $0.8340

Economic Leverage as of January 31, 2018(d)

  41%

 

  (a)  Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.80%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.  
  (c)  The distribution rate is not constant and is subject to change.  
  (d)  Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended January 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYF(a)(b)

    (11.16 )%       0.34

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

    (6.00      0.50  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Fund moved from a premium to NAV to a discount during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c)  Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  U.S. municipal bonds produced generally flat returns during the period, with income offsetting a modest decline in prices. Stronger economic growth and concerns about emerging inflation pressures fueled expectations that the Fed would continue to tighten monetary policy, dampening returns across the fixed-income market.

 

  Portfolio income, enhanced by leverage, made the largest positive contribution to performance given the downturn in bond prices. However, the use of leverage also amplified the effect of market weakness.

 

  Positions in non-investment grade issues aided results at a time in which lower-rated debt outperformed.

 

  The Fund’s holdings in New Jersey tax-backed issues, which outpaced the broader market by a wide margin, also helped performance.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

 

  Investment in pre-refunded bonds, which tend to have shorter maturities, hurt results amid weak performance for the short end of the yield curve.

 

  Reinvestment had an adverse effect on the Fund’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.

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.

 

 

12    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of January 31, 2018 (continued)    BlackRock MuniYield Investment Fund

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/18      07/31/17      Change      High      Low  

Market Price

  $ 14.08      $ 16.34        (13.83 )%     $ 16.57      $ 14.01  

Net Asset Value

    14.54        14.94        (2.68      15.04        14.54  

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

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector

 

01/31/18

   

07/31/17

 

Transportation

    27     28

County/City/Special District/School District

    20       20  

Utilities

    14       14  

Health

    16       16  

Education

    9       8  

State

    5       5  

Tobacco

    4       3  

Corporate

    3       4  

Housing

    2       2  

 

    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.  

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    12

2019

    28  

2020

    11  

2021

    16  

2022

    4  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating

 

01/31/18

   

07/31/17

 

AAA/Aaa

    8     8

AA/Aa

    48       50  

A

    20       22  

BBB/Baa

    9       9  

BB/Ba

    3       3  

B/B

    2       1  

N/R(b)

    10       7  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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.  
  (b)  The investment adviser evaluates the credit quality of not-rated 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, 2018 and July 31, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and less than 1%, respectively, of the Fund’s total investments.  
 

 

 

FUND SUMMARY      13  


Fund Summary  as of January 31, 2018    BlackRock MuniYield New Jersey Fund, Inc.

 

Fund Overview

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

On September 6, 2017, the Boards of the Fund, BlackRock New Jersey Municipal Bond Trust (BLJ) and BlackRock New Jersey Municipal Income Trust (BNJ) approved the reorganizations of BLJ and BNJ with and into the Fund, with the Fund continuing as the surviving fund after the reorganization. The reorganizations are subject to approval by each fund’s shareholders and certain other conditions.

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

Fund Information

 

Symbol on NYSE

  MYJ

Initial Offering Date

  May 1, 1992

Yield on Closing Market Price as of January 31, 2018 ($15.00)(a)

  6.00%

Tax Equivalent Yield(b)

  11.95%

Current Monthly Distribution per Common Share(c)

  $0.0750

Current Annualized Distribution per Common Share(c)

  $0.9000

Economic Leverage as of January 31, 2018(d)

  40%

 

  (a)  Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.  
  (b)  Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 49.77%, 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 monthly distribution per Common Share, declared on March 1, 2018, was decreased to $0.0605 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.  
  (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 accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.  

Performance

Returns for the six months ended January 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYJ(a)(b)

    (6.92 )%       1.79

Lipper New Jersey Municipal Debt Funds(c)

    (5.19      0.79  

 

  (a)  All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.  
  (b)  The Fund moved from a premium to NAV to a discount during the period, which accounts for the difference between performance based on market price and performance based on NAV.  
  (c)  Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.  

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

 

  U.S. municipal bonds produced generally flat returns during the period, with income offsetting a modest decline in prices. Stronger economic growth and concerns about emerging inflation pressures fueled expectations that the Fed would continue to tighten monetary policy, dampening returns across the fixed-income market.

 

  New Jersey bonds outperformed the national market due in part to investors’ positive perception of legislation that redirected roughly $1 billion annually in lottery proceeds to the state’s pension funds. The yield spreads on New Jersey tax-backed issues compressed significantly, making it the best performing sector held in the Fund during the past six months.

 

  Positions in longer-term securities, which strongly outpaced short-term issues, contributed positively. Conversely, the Fund’s holdings in short-term and intermediate bonds — which are more sensitive to Fed policy — lagged due to expectations for higher rates.

 

  The Fund’s investments in lower-rated issues, which outpaced the broader market, also added value.

 

  The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

 

  Reinvestment had an adverse effect on the Fund’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.

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.

 

 

14    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of January 31, 2018 (continued)    BlackRock MuniYield New Jersey Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/18      07/31/17      Change      High      Low  

Market Price

  $ 15.00      $ 16.58        (9.53 )%     $ 16.94      $ 14.89  

Net Asset Value

    15.72        15.89        (1.07      16.16        15.72  

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

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector

 

01/31/18

   

07/31/17

 

Transportation

    39     37

Education

    16       17  

County/City/Special District/School District

    16       16  

State

    11       12  

Corporate

    7       7  

Health

    6       6  

Housing

    2       2  

Tobacco

    2       2  

Utilities

    1       1  

 

    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.  

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2018

    13

2019

    11  

2020

    6  

2021

    19  

2022

    9  

 

  (c)  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.  
  * Excludes short-term securities.  

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating

 

01/31/18

   

07/31/17

 

AAA/Aaa

    5     4

AA/Aa

    32       35  

A

    26       29  

BBB/Baa

    28       26  

BB/Ba

    3       2  

B/B

    1        

N/R

    5 (b)      4  

 

  (a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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.  
  (b)  The investment adviser evaluates the credit quality of not-rated 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, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% of the Fund’s total investments.  
 

 

 

FUND SUMMARY      15  


Schedule of Investments  (unaudited)

January 31, 2018

  

BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Municipal Bonds

   
New York — 131.1%            
Corporate — 4.3%            

Build NYC Resource Corp., Refunding RB,

   

Pratt Paper, Inc. Project, AMT,
4.50%, 01/01/25(a)

  $ 500     $ 556,070  

County of Onondaga New York Industrial Development Agency, RB, Bristol-Meyers Squibb Co. Project, AMT, 5.75%, 03/01/24

    500       592,985  

New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/26

    1,000       1,074,880  

Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series B, 4.00%, 11/01/24(a)

    500       500,305  
   

 

 

 
      2,724,240  
County/City/Special District/School District — 25.4%        

City of Glen Cove New York, GO:

   

Series A, 5.00%, 01/01/25

    195       221,399  

Series A, 5.00%, 01/01/26

    105       119,455  

Refunding, 5.00%, 01/15/25

    980       1,113,358  

Refunding, 5.00%, 01/15/26

    520       591,906  

City of New York, GO, Sub-Series I-1:

   

5.50%, 04/01/19(b)

    995       1,040,850  

5.50%, 04/01/21

    505       528,331  

City of New York New York, GO, Refunding, Series E:

   

5.25%, 08/01/22

    2,000       2,288,420  

5.00%, 08/01/30

    1,250       1,414,138  

City of New York New York, GO:

   

Sub-Series A-1, 5.00%, 08/01/33

    700       794,752  

Sub-Series I-1, 5.13%, 04/01/25

    750       780,885  

City of New York New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium (AMBAC), 5.00%, 01/01/31

    1,000       1,002,840  

City of New York New York Industrial Development Agency, Refunding RB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 07/01/22

    850       940,517  

Haverstraw-Stony Point Central School District, GO, Refunding, (AGM), 5.00%, 10/15/33

    300       340,815  

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:

   

5.75%, 02/15/21(b)

    615       688,203  

5.75%, 02/15/47

    385       422,780  

New York Convention Center Development Corp., Refunding RB, Hotel Unit Fee Secured, 5.00%, 11/15/32

    20       23,043  

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.00%, 11/15/31

    1,000       1,105,750  

State of New York Dormitory Authority, RB:

   

Haverstraw King’s Daughters Public Library, 5.00%, 07/01/26

    1,015       1,120,286  

Municipal Health Facilities Lease, Sub-Series 2-4, 5.00%, 01/15/27

    600       601,932  

State of New York Thruway Authority, Refunding RB, Series A-1, 5.00%, 04/01/19(b)

    1,000       1,040,920  
   

 

 

 
      16,180,580  
Education — 32.9%            

Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM),
4.00%, 10/01/20(b)

    1,000       1,062,330  

Build NYC Resource Corp., Refunding RB:

   

Ethical Culture Fieldston School Project, 5.00%, 06/01/30

    385       437,214  

Manhattan College Project, 5.00%, 08/01/30

    700       808,696  

New York Law School Project, 5.00%, 07/01/33

    1,500       1,664,160  

Packer Collegiate Institute Project, 5.00%, 06/01/35

    250       279,012  
Security  

Par

(000)

    Value  
Education (continued)            

City of New York New York Trust for Cultural Resources, Refunding RB, American Museum of Natural History, Series A, 5.00%, 07/01/32

  $ 500     $ 577,165  

Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, The Charter School for Applied Technologies Project, Series A, 4.50%, 06/01/27

    1,000       1,066,660  

County of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, Buffalo State College Foundation Housing, 6.00%, 10/01/31

    1,000       1,129,240  

County of Monroe New York Industrial Development Corp., Refunding RB, Series A, 5.00%, 07/01/23(b)

    1,000       1,162,110  

County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 5.00%, 03/01/20(b)

    1,000       1,068,230  

County of Schenectady New York Capital Resource Corp., Refunding RB, Union College, 5.00%, 07/01/32

    500       554,790  

State of New York Dormitory Authority, RB:

   

Convent of the Sacred Heart (AGM), 4.00%, 11/01/18

    500       509,735  

Convent of the Sacred Heart (AGM), 5.00%, 11/01/21

    120       132,576  

Fordham University, Series A, 5.25%, 07/01/21(b)

    500       558,800  

Icahn School of Medicine at Mount Sinai, Series A, 5.00%, 07/01/32

    1,000       1,124,260  

Mount Sinai School of Medicine, 5.50%, 07/01/19(b)

    1,000       1,055,450  

Mount Sinai School of Medicine, Series A (NPFGC), 5.15%, 07/01/24

    250       288,235  

Touro College & University System Obligation Group, Series A, 4.13%, 01/01/30

    1,000       1,021,750  

State of New York Dormitory Authority, Refunding RB:

   

Fordham University, 5.00%, 07/01/29

    375       431,910  

Fordham University, 5.00%, 07/01/30

    300       344,952  

Pace University, Series A, 5.00%, 05/01/27

    980       1,079,960  

Series B, 5.00%, 07/01/31

    1,500       1,729,275  

State University Dormitory Facilities, Series A, 5.25%, 07/01/30

    1,050       1,210,272  

The Culinary Institute of America, 5.00%, 07/01/28

    500       548,850  

Troy Capital Resource Corp., Refunding RB, 5.00%, 08/01/32

    1,000       1,129,130  
   

 

 

 
      20,974,762  
Health — 16.3%            

Build NYC Resource Corp., Refunding RB, New York Methodist Hospital Project, 5.00%, 07/01/30

    500       556,365  

County of Dutchess New York Industrial Development Agency, RB, Vassar Brothers Medical Center (AGC), 5.00%, 04/01/21

    215       232,344  

County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A (AGM), 5.25%, 07/01/25

    1,000       1,073,260  

County of Monroe Industrial Development Corp., RB, Rochester General Hospital Project, 5.00%, 12/01/29

    660       753,925  

County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien:

   

Remarketing, Series A, 5.00%, 11/01/24

    910       986,449  

Remarketing, Series A, 5.00%, 11/01/30

    580       622,282  

Series B, 6.00%, 11/01/20(b)

    205       228,731  

Series B, 6.00%, 11/01/30

    35       38,231  

County of Westchester New York Local Development Corp., Refunding RB:

   

Kendal On Hudson Project, 4.00%, 01/01/23

    250       273,165  

Kendal On Hudson Project, 5.00%, 01/01/28

    875       959,411  

Westchester Medical Center, 5.00%, 11/01/34

    500       546,930  

State of New York Dormitory Authority, RB,
Series A(b):

   

New York State Association for Retarded Children, Inc., 5.30%, 07/01/19

    450       473,697  

New York University Hospitals Center, 5.00%, 07/01/20

    1,000       1,078,940  
 

 

 

16    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Health (continued)            

State of New York Dormitory Authority, Refunding RB:

   

Mount Sinai Hospital Series A, 4.25%, 07/01/23

  $ 250     $ 264,060  

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/21(b)

    500       551,400  

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/32

    1,270       1,441,666  

Orange Regional Medical Center,
5.00%, 12/01/27(a)

    100       112,017  

Orange Regional Medical Center,
5.00%, 12/01/28(a)

    200       223,190  
   

 

 

 
      10,416,063  
Housing — 3.2%            

City of New York New York Housing Development Corp., RB, M/F Housing:

   

Series B1, 5.25%, 07/01/30

    500       561,930  

Series H-2-A, Remarketing, AMT, 5.00%, 11/01/30

    780       783,541  

Yonkers New York Industrial Development Agency, RB, Sacred Heart Association Project, Series A, AMT (SONYMA), 4.80%, 10/01/26

    690       691,912  
   

 

 

 
      2,037,383  
State — 9.3%            

City of New York New York Transitional Finance Authority, BARB:

   

Fiscal 2009, Series S-3, 5.00%, 01/15/23

    575       594,464  

Fiscal 2015, Series S-1, 5.00%, 07/15/37

    1,140       1,305,186  

State of New York Dormitory Authority, RB:

   

5.00%, 03/15/30

    500       592,115  

Series A, 5.00%, 03/15/32

    1,000       1,148,970  

State of New York Urban Development Corp., Refunding RB, Personal Income Tax, Series A, 5.00%, 03/15/35

    1,990       2,288,778  
   

 

 

 
      5,929,513  
Tobacco — 1.3%            

County of Niagara New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 5.25%, 05/15/34

    500       563,380  

New York Counties Tobacco Trust, Refunding RB, Tobacco Settlement Pass-Through, 5.00%, 06/01/30

    265       296,747  
   

 

 

 
      860,127  
Transportation — 30.0%            

Metropolitan Transportation Authority, RB:

   

Series A, 5.00%, 11/15/21(b)

    1,000       1,122,440  

Series A-1, 5.25%, 11/15/23(b)

    500       591,955  

Series B, 5.25%, 11/15/33

    1,000       1,155,240  

Series B (NPFGC), 5.25%, 11/15/19

    860       916,296  

Sub-Series B-1, 5.00%, 11/15/21(b)

    460       516,322  

Sub-Series B-4, 5.00%, 11/15/21(b)

    300       336,732  

Sub-Series D-1, 5.25%, 11/15/44

    225       260,500  

Metropolitan Transportation Authority, Refunding RB:

   

Green Bond, Series C-1, 5.00%, 11/15/31

    1,000       1,183,620  

Series D, 5.00%, 11/15/32

    500       590,345  

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, Series 8, 5.00%, 12/01/20

    1,000       1,054,970  

Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/21

    2,000       2,216,840  

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 152nd Series, AMT, 5.00%, 11/01/23

    500       504,310  

Port Authority of New York & New Jersey, Refunding RB, AMT: 178th Series, 5.00%, 12/01/32

    1,000       1,122,130  

Consolidated, 152nd Series, 5.00%, 11/01/24

    1,000       1,008,620  

State of New York Thruway Authority, Refunding RB, General:

   

Series I, 5.00%, 01/01/37

    660       729,973  

Series K, 5.00%, 01/01/32

    1,035       1,191,244  

Triborough Bridge & Tunnel Authority, RB:

   

Series B, 5.00%, 11/15/31

    2,005       2,337,509  

Series B-3, 5.00%, 11/15/33

    500       582,920  
Security  

Par

(000)

    Value  
Transportation (continued)            

Triborough Bridge & Tunnel Authority, Refunding RB:

   

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

  $ 500     $ 561,005  

Sub-Series A, 5.00%, 11/15/24

    1,000       1,149,750  
   

 

 

 
      19,132,721  
Utilities — 8.4%  

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series DD, 5.00%, 06/15/32

    250       253,262  

Long Island Power Authority, RB, Electric System, 5.00%, 09/01/32

    1,000       1,161,820  

Long Island Power Authority, Refunding RB, Electric System, Series A:

   

5.50%, 04/01/19(b)

    500       523,335  

5.00%, 09/01/34

    1,000       1,126,880  

State of New York Environmental Facilities Corp., Refunding RB, NYC Municipal Water Finance Authority Project, 2nd Resolution, Series B, 5.00%, 06/15/31

    1,000       1,103,450  

Utility Debt Securitization Authority, Refunding RB, New York Restructuring, Series E, 5.00%, 12/15/32

    1,000       1,156,940  
   

 

 

 
      5,325,687  
   

 

 

 

Total Municipal Bonds — 131.1%
(Cost — $80,064,818)

 

    83,581,076  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(c)

 

New York — 26.6%  
County/City/Special District/School District — 10.5%  

City of New York New York, GO:

   

Sub-Series 1-I, 5.00%, 03/01/32

    991       1,131,595  

Sub-Series G-1, 5.00%, 04/01/29

    750       833,779  

Refunding Go, Series E, 5.00%, 08/01/19(b)

    174       182,561  

Refunding Go, Series E, 5.00%, 08/01/27

    425       446,655  

City of New York New York Convention Center Development Corp., Refunding RB, Hotel Unit Fee Secured, 5.00%, 11/15/32

    3,540       4,078,629  
   

 

 

 
      6,673,219  
State — 7.2%  

Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 5.00%, 10/15/31

    990       1,154,515  

State of New York Dormitory Authority, Refunding RB, Series E, 5.25%, 03/15/33

    1,500       1,770,840  

State of New York Urban Development Corp., RB, Personal Income Tax, Series A-1, 5.00%, 03/15/32

    1,499       1,689,334  
   

 

 

 
      4,614,689  
Transportation — 6.2%  

Hudson Yards Infrastructure Corp., Refunding RB, Series A, 5.00%, 02/15/29

    1,005       1,191,006  

Metropolitan Transportation Authority, Refunding RB, Series B, 5.25%, 11/15/19(b)

    749       798,816  

Port Authority of New York & New Jersey, ARB, Consolidated, 169th Series, AMT, 5.00%, 10/15/26

    750       827,246  

Port Authority of New York & New Jersey, RB, 178th Series, AMT, 5.00%, 12/01/32

    991       1,110,180  
   

 

 

 
      3,927,248  
Utilities — 2.7%            

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2011, Series HH, 5.00%, 06/15/32

    1,560       1,715,345  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 26.6%
(Cost — $16,230,071)

 

    16,930,501  
   

 

 

 

Total Long-Term Investments — 157.7%
(Cost — $96,294,889)

 

    100,511,577  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      17  


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Short-Term Securities — 1.2%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.59%(d)(e)

    790,002     $ 790,081  
   

 

 

 

Total Short-Term Securities — 1.2%
(Cost — $790,041)

 

    790,081  
   

 

 

 

Total Investments — 158.9%
(Cost — $97,084,930)

 

    101,301,658  

Other Assets Less Liabilities — 1.2%

 

    775,386  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (13.9)%

 

    (8,889,552

VRDP Shares, at Liquidation Value, Net of Deferred Offering
Costs — (46.2)%

 

    (29,457,662
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 63,729,830  
   

 

 

 

 

(a)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(c)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(d)  Annualized 7-day yield as of period end.
 
(e)  During the six months ended January 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
07/31/17
     Net
Activity
     Shares
Held at
01/31/18
     Value at
01/31/18
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     187,589        602,413        790,002      $ 790,081      $ 3,467      $ 73      $ 21  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes net capital gain distributions, if applicable.  

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

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Short Contracts:

                 

10-Year U.S. Treasury Note

     25          03/20/18        $ 3,039        $ 71,924  

Long U.S. Treasury Bond

     12          03/20/18          1,774          52,877  

5-Year U.S. Treasury Note

     17          03/29/18          1,950          27,230  
                 

 

 

 
                  $ 152,031  
                 

 

 

 

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 as follows:

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 152,031      $      $ 152,031  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.  

 

 

18    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

 

For the six months ended January 31, 2018, 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

   $      $      $      $      $ 82,073      $      $ 82,073  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 155,131      $      $ 155,131  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 6,438,160  

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 investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 100,511,577        $             —        $ 100,511,577  

Short-Term Securities

     790,081                            790,081  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 790,081        $ 100,511,577        $        $ 101,301,658  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 152,031        $        $        $ 152,031  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 152,031        $        $        $ 152,031  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each sector.  
  (b)  Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.  

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

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $        $ (8,859,171      $        $ (8,859,171

VRDP Shares at Liquidation Value

              (29,600,000                 (29,600,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $         —        $ (38,459,171      $             —        $ (38,459,171
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended January 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      19  


Schedule of Investments  (unaudited)

January 31, 2018

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Municipal Bonds

   
Arizona — 147.5%            
Corporate — 18.4%            

County of Maricopa Arizona Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 06/01/35

  $ 4,350     $ 4,629,183  

County of Pima Arizona IDA, RB, Tucson Electric Power Co. Project, Series A, 5.25%, 10/01/40

    1,000       1,077,390  

County of Pima Arizona IDA, Refunding RB, Tucson Electric Power Co. Project, Series A, 4.00%, 09/01/29

    1,000       1,053,530  

Salt Verde Financial Corp., RB, Senior:

   

5.50%, 12/01/29

    2,000       2,421,420  

5.00%, 12/01/37

    2,500       2,977,150  
   

 

 

 
      12,158,673  
County/City/Special District/School District — 29.2%  

City of Tucson Arizona, COP, (AGC), 5.00%, 07/01/19(a)

    1,000       1,048,770  

County of Maricopa Arizona School District No. 28 Kyrene Elementary, GO, School Improvement Project of 2010, Series B:

   

5.50%, 07/01/29

    480       567,950  

5.50%, 07/01/30

    400       473,292  

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

    1,250       1,406,200  

County of Maricopa Arizona Unified School District No. 89 Dysart, GO, School Improvement Project of 2006, Series C, 6.00%, 07/01/28

    1,000       1,019,190  

County of Mohave Arizona Unified School District No. 20 Kingman, GO, School Improvement Project of 2006, Series C (AGC), 5.00%, 07/01/26

    1,000       1,048,770  

Gilbert Public Facilities Municipal Property Corp., RB, 5.50%, 07/01/19(a)

    2,000       2,112,920  

Greater Arizona Development Authority, RB, Santa Cruz County Jail, Series 2, 5.25%, 08/01/18(a)

    1,155       1,177,130  

Marana Municipal Property Corp., RB, Series A, 5.00%, 07/01/18(a)

    2,000       2,030,580  

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

    3,600       3,897,036  

Town of Buckeye Arizona, RB, 5.00%, 07/01/43

    4,000       4,466,160  
   

 

 

 
      19,247,998  
Education — 36.1%  

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

    2,595       2,876,506  

Arizona IDA, Refunding RB, Series A(b):

   

Basis Schools, Inc. Projects, 5.13%, 07/01/37

    500       525,600  

Odyssey Preparatory Academy Project, 5.50%, 07/01/52

    500       486,435  

Arizona State University, RB, Series C(a):

   

6.00%, 07/01/18

    970       988,614  

6.00%, 07/01/18

    350       356,717  

6.00%, 07/01/18

    425       433,156  

6.00%, 07/01/18

    400       407,676  

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

    2,050       2,353,420  

City of Phoenix Arizona IDA, RB:

   

Candeo School, Inc. Project, 6.63%, 07/01/33

    500       561,490  

Great Hearts Academies — Veritas Projects,
6.30%, 07/01/21(a)

    500       574,705  

Great Hearts Academies Projects, Series A, 5.00%, 07/01/44

    2,000       2,130,720  

Legacy Traditional Schools Projects, Series A, 6.75%, 07/01/44(b)

    440       488,145  

Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46(b)

    500       515,210  

City of Phoenix Arizona IDA, Refunding RB:

   

Basis Schools, Inc. Projects, 5.00%, 07/01/45(b)

    1,000       1,033,730  
Security  

Par

(000)

    Value  
Education (continued)  

Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/46(b)

  $ 1,500     $ 1,549,650  

Great Hearts Academies Projects, 5.00%, 07/01/46

    500       528,900  

Legacy Traditional School Projects, 5.00%, 07/01/45(b)

    500       513,055  

County of Maricopa Arizona IDA, RB, Reid Traditional Schools Projects, 5.00%, 07/01/47

    1,000       1,044,010  

County of Maricopa Arizona IDA, Refunding RB, Paradise Schools Projects, 5.00%, 07/01/47(b)

    1,000       1,024,800  

Northern Arizona University, RB, Stimulus Plan for Economic and Educational Development, 5.00%, 08/01/38

    3,000       3,300,390  

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

    1,400       1,550,934  

Town of Florence, Inc. Arizona, IDA, ERB, Legacy Traditional School Project, Queen Creek and Casa Grande Campuses, 6.00%, 07/01/43

    500       531,220  
   

 

 

 
      23,775,083  
Health — 17.7%  

Arizona Health Facilities Authority, RB, Catholic Healthcare West, Series B-2 (AGM), 5.00%, 03/01/41

    500       529,785  

Arizona Health Facilities Authority, Refunding RB, Series A:

   

Phoenix Children’s Hospital, 5.00%, 02/01/42

    1,000       1,060,100  

Scottsdale Lincoln Hospitals Project, 5.00%, 12/01/42

    1,750       1,972,705  

City of Tempe Arizona IDA, Refunding RB, Friendship Village of Tempe, Series A, 6.25%, 12/01/42

    500       532,425  

County of Maricopa Arizona IDA, RB, Catholic Healthcare West, Series A, 6.00%, 07/01/39

    170       178,942  

County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group, Series A:

   

5.00%, 01/01/38

    1,320       1,492,036  

4.00%, 01/01/41

    3,000       3,101,760  

County of Yavapai Arizona IDA, Refunding RB, Northern Arizona Healthcare System, 5.25%, 10/01/26

    1,000       1,099,180  

University Medical Center Corp., RB, 6.50%, 07/01/19(a)

    500       534,105  

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

    1,000       1,137,730  
   

 

 

 
      11,638,768  
State — 13.9%  

Arizona Department of Transportation State Highway Fund, RB, Series B, 5.00%, 07/01/18(a)

    4,000       4,061,160  

Arizona School Facilities Board, COP(a):

   

5.13%, 09/01/18

    1,000       1,021,570  

5.75%, 09/01/18

    2,000       2,050,340  

State of Arizona, RB, Lottery Revenue, Series A (AGM), 5.00%, 07/01/29

    1,930       2,041,901  
   

 

 

 
      9,174,971  
Transportation — 4.4%  

City of Phoenix Arizona Civic Improvement Corp., RB,
Senior Lien, Series A, AMT, 5.00%, 07/01/18(a)

    1,000       1,014,870  

City of Phoenix Arizona Civic Improvement Corp., Refunding RB:

   

Junior Lien, Series A, 5.00%, 07/01/20(a)

    1,000       1,079,440  

Senior Lien, AMT, 5.00%, 07/01/32

    700       779,828  
   

 

 

 
      2,874,138  
Utilities — 27.8%  

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

    3,500       3,910,340  

City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Senior Lien, 5.50%, 07/01/22

    2,000       2,034,020  

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

    3,000       3,386,400  

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

    100       131,207  

County of Pinal Arizona, RB, Electric District No. 4, 6.00%, 12/01/18(a)

    2,000       2,075,480  
 

 

 

20    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Utilities (continued)  

County of Pinal Arizona, Refunding RB, Electric District No. 3, 5.25%, 07/01/21(a)

  $ 2,500     $ 2,795,750  

County of Pinal Arizona IDA, RB, San Manuel Facility Project, AMT, 6.25%, 06/01/26

    500       505,435  

Salt River Project Agricultural Improvement & Power District Refunding RB:

   

Salt River Project Electric System, 5.00%, 01/01/36

    1,000       1,182,630  

Series A, 5.00%, 12/01/41

    2,000       2,285,420  
   

 

 

 
      18,306,682  
   

 

 

 

Total Municipal Bonds in Arizona

 

    97,176,313  
   

 

 

 
Puerto Rico — 1.4%            
Tobacco — 1.4%            

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43

    1,000       913,970  
   

 

 

 

Total Municipal Bonds — 148.9%
(Cost — $93,612,012)

 

    98,090,283  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(c)

 

Arizona — 9.8%            
Utilities — 9.8%            

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

    3,000       3,286,920  

City of Phoenix Civic Improvement Corp, Refunding RB, Water System, Junior Lien, Series A, 5.00%, 07/01/19(a)

    3,000       3,146,250  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option

Bond Trusts — 9.8%
(Cost — $6,032,324)

 

 

    6,433,170  
   

 

 

 

Total Long-Term Investments — 158.7%
(Cost — $99,644,336)

 

    104,523,453  
   

 

 

 
Security   Shares     Value  

Short-Term Securities — 0.6%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.59%(d)(e)

    359,008     $ 359,044  
   

 

 

 

Total Short-Term Securities — 0.6%
(Cost — $359,013)

 

    359,044  
   

 

 

 

Total Investments — 159.3%
(Cost — $100,003,349)

 

    104,882,497  

Other Assets Less Liabilities — 1.7%

 

    1,129,455  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (4.6)%

 

    (3,003,519

VRDP Shares at Liquidation Value, Net of Deferred Offering

Costs — (56.4)%

 

 

    (37,148,838
   

 

 

 

Net Assets Applicable to Common
Shares — 100.0%

 

  $ 65,859,595  
   

 

 

 

 

(a)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c) Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(d)  Annualized 7-day yield as of period end.
 
(e)  During the six months ended January 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
07/31/17
     Net
Activity
     Shares
Held at
01/31/18
     Value at
01/31/18
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     969,095        (610,087      359,008      $ 359,044      $ 3,107      $ 210      $ (140
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes net capital gain distributions, if applicable.  

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.

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

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

     9          03/20/18        $ 1,094,203        $ 26,776  

Long U.S. Treasury Bond

     19          03/20/18          2,808,437          93,030  

5-Year U.S. Treasury Note

     5          03/29/18          573,555          8,122  
                 

 

 

 
                  $ 127,928  
                 

 

 

 

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 as follows:

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 127,928      $      $ 127,928  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.  

For the six months ended January 31, 2018, 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

   $      $      $      $      $ 20,453      $      $ 20,453  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 135,302      $      $ 135,302  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 4,725,754  

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

 

 

22    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Fair Value Hierarchy as of Period End

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

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 104,523,453        $             —        $ 104,523,453  

Short-Term Securities

     359,044                            359,044  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 359,044        $ 104,523,453        $        $ 104,882,497  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 127,928        $        $        $ 127,928  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 127,928        $        $        $ 127,928  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each sector.  
  (b)  Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.  

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

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

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

VRDP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $         —        $ (40,300,000      $        $ (40,300,000
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended January 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (unaudited)

January 31, 2018

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Municipal Bonds

   
California — 84.7%            
Corporate — 1.3%            

City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series D, 5.88%, 01/01/34

  $ 4,000     $ 4,232,320  
   

 

 

 
County/City/Special District/School District — 25.8%        

City of Los Angeles California, COP, Senior, Sonnenblick Del Rio West Los Angeles (AMBAC), 6.20%, 11/01/31

    2,000       2,008,180  

City of Los Angeles California Municipal Improvement Corp., RB, Real Property, Series E, 6.00%, 09/01/19(a)

    2,660       2,849,711  

City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:

   

6.50%, 05/01/36

    1,520       1,738,607  

6.50%, 05/01/42

    1,860       2,127,505  

County of Los Angeles California Metropolitan Transportation Authority, Refunding RB, Proposition C, Sales Tax Revenue, Series A, 5.00%, 07/01/42

    4,000       4,680,400  

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

    5,000       5,809,850  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 03/01/21(a)

    2,440       2,761,421  

County of Santa Clara California Financing Authority, Refunding LRB, Series L, 5.25%, 05/15/18(a)

    16,000       16,180,480  

Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 08/01/40

    5,500       6,272,365  

Oak Grove School District, GO, Election of 2008, Series A, 5.50%, 08/01/33

    880       931,788  

Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 08/01/21(a)

    7,135       8,025,091  

Orange County Sanitation District, Refunding RB, Series A, 5.00%, 02/01/36

    3,000       3,486,300  

Pico Rivera Public Financing Authority, RB,
5.75%, 09/01/19(a)

    5,300       5,653,033  

Riverside Community Properties Development, Inc., RB, Riverside County Law Building Project,
6.00%, 10/15/23(a)

    5,000       6,118,000  

Riverside County Transportation Commission, Refunding RB, Series A, 5.00%, 06/01/39

    5,580       6,521,737  

San Leandro Unified School District, GO, Election of 2016, Series A (BAM), 5.25%, 08/01/42

    2,655       3,145,511  

San Marcos Schools Financing Authority, Refunding RB, (AGM), 5.25%, 08/15/40

    750       896,603  

Washington Township Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/38

    1,625       1,921,026  

West Contra Costa California Unified School District, GO, Election of 2012, Series A, 5.50%, 08/01/39

    2,500       2,923,550  
   

 

 

 
      84,051,158  
Education — 4.8%            

California Educational Facilities Authority, Refunding RB:

   

Pitzer College, 6.00%, 04/01/20(a)

    2,500       2,736,900  

San Francisco University, 6.13%, 10/01/21(a)

    855       989,474  

San Francisco University, 6.13%, 10/01/36

    890       1,024,835  

California Municipal Finance Authority, RB, Emerson College, 6.00%, 01/01/22(a)

    2,750       3,197,013  

California School Finance Authority, RB:

   

Alliance College-Ready Public Schools — 2023 Union LLC Project, Series A, 6.00%, 07/01/33

    1,500       1,688,130  

Alliance College-Ready Public Schools — 2023 Union LLC Project, Series A, 6.30%, 07/01/43

    3,000       3,380,970  

Value Schools, 6.65%, 07/01/33

    595       674,105  

Value Schools, 6.90%, 07/01/43

    1,330       1,469,451  
Security  

Par

(000)

    Value  
Education (continued)        

University of California, RB, Series AV, 5.25%, 05/15/47

  $ 500     $ 589,680  
   

 

 

 
      15,750,558  
Health — 11.8%            

California Health Facilities Financing Authority, RB:
Children’s Hospital, Series A, 5.25%, 11/01/41

    9,700       10,721,216  

Sutter Health, Series B, 6.00%, 08/15/42

    7,530       8,273,136  

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 07/01/19(a)

    10,000       10,634,300  

California Statewide Communities Development Authority, RB, Sutter Health, Series A, 6.00%, 08/15/42

    8,110       8,910,376  
   

 

 

 
      38,539,028  
Housing — 1.1%            

County of Santa Clara California Housing Authority, RB, John Burns Gardens Apartments Project, Series A, AMT, 6.00%, 08/01/41

    3,500       3,508,540  
   

 

 

 
State — 5.8%            

State of California Public Works Board, LRB:

   

Department of Developmental Services, Poterville, Series C, 6.25%, 04/01/19(a)

    1,610       1,701,335  

Department of Education, Riverside Campus Project, Series B, 6.50%, 04/01/19(a)

    10,000       10,596,100  

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

    1,510       1,760,721  

Various Capital Projects, Sub- Series I-1, 6.38%, 11/01/19(a)

    4,400       4,777,212  
   

 

 

 
      18,835,368  
Tobacco — 7.8%            

County of California Tobacco Securitization Agency, Refunding RB, Asset-Backed, Merced County, Series A, 5.25%, 06/01/45

    775       776,046  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed:

   

Convertible CAB, Series A-2, 5.30%, 06/01/37

    750       757,612  

Senior Series A-1, 5.75%, 06/01/47

    16,305       16,460,224  

Series A, 5.00%, 06/01/40

    3,235       3,708,183  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1:

   

5.00%, 06/01/37

    3,000       3,008,700  

5.13%, 06/01/46

    605       606,047  
   

 

 

 
      25,316,812  
Transportation — 18.6%            

City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 05/01/39

    5,215       5,501,095  

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

   

2nd Series A, AMT, 5.25%, 05/01/33

    1,440       1,629,014  

San Francisco International Airport, 5.00%, 05/01/46

    8,035       9,156,927  

San Francisco International Airport, Series A, AMT, 5.00%, 05/01/41

    2,400       2,705,304  

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

    6,000       6,812,040  

City & County of San Francisco California Port Commission, RB, Series A, 5.13%, 03/01/40

    5,075       5,370,923  

City of Long Beach California Harbor Revenue, ARB, Green Bonds, Series B, AMT, 5.00%, 05/15/43

    1,690       1,929,710  

City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, Sub- Series A, AMT, 5.00%, 05/15/42

    3,520       3,972,355  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 05/15/39

    3,605       3,772,705  
 

 

 

24    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Transportation (continued)            

City of San Jose California, ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT (AGM):

   

5.50%, 03/01/30

  $ 1,000     $ 1,096,180  

5.75%, 03/01/34

    1,000       1,109,260  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT:

   

Series A, 5.00%, 03/01/36

    1,000       1,143,390  

Series A, 5.00%, 03/01/37

    1,000       1,140,850  

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

    1,400       1,582,700  

County of Sacramento California, Refunding ARB,
Senior Series A, 5.00%, 07/01/41

    8,280       9,470,001  

County of Sacramento California, ARB:

   

PFC/Grant, Sub-Series D, 6.00%, 07/01/35

    3,000       3,056,070  

Senior Series B, 5.75%, 07/01/39

    900       916,200  

County of San Diego Regional Airport Authority, ARB, Subordinate, Series B, AMT, 5.00%, 07/01/42

    250       284,795  
   

 

 

 
      60,649,519  
Utilities — 7.7%  

City of Los Angeles California Department of Water & Power, Refunding RB, Water System, Series A, 5.25%, 07/01/39

    4,000       4,418,800  

City of Petaluma California Wastewater, Refunding RB, 6.00%, 05/01/21(a)

    2,645       3,010,856  

Dublin-San Ramon Services District Water Revenue, Refunding RB, 6.00%, 02/01/21(a)

    2,420       2,731,163  

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

    5,000       5,766,750  

Los Angeles Department of Water & Power System Revenue, RB, Series B, 5.00%, 07/01/38

    4,000       4,611,480  

Oceanside Public Financing Authority, Refunding RB, Series A:

   

5.25%, 05/01/30

    1,245       1,449,616  

5.25%, 05/01/33

    2,810       3,250,552  
   

 

 

 
      25,239,217  
   

 

 

 

Total Municipal Bonds in California

 

    276,122,520  
   

 

 

 
Puerto Rico — 0.8%  
Tobacco — 0.8%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 05/15/39

    1,970       1,812,381  

5.63%, 05/15/43

    795       726,606  
   

 

 

 

Total Municipal Bonds in Puerto Rico

 

    2,538,987  
   

 

 

 

Total Municipal Bonds — 85.5%
(Cost — $263,032,941)

 

    278,661,507  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(b)

 

California — 82.7%  
County/City/Special District/School District — 40.4%  

California Health Facilities Financing Authority, RB,
Sutter Health, Series A, 5.00%, 11/15/41

    11,000       12,558,040  

City of Los Angeles California, Refunding RB, Series A, 5.00%, 06/01/39(a)

    9,870       10,339,467  

County of Los Angeles California Public Works Financing Authority, Refunding RB, Series A:

   

5.00%, 12/01/39

    17,850       20,331,953  

5.00%, 12/01/44

    14,095       16,017,106  

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

   

Election of 2001, Series E-1, 5.00%, 08/01/33

    14,850       15,103,490  

Election of 2008, Series C, 5.25%, 08/01/39(c)

    9,682       10,551,747  

Refunding Election of 2008, Series A, 6.00%, 08/01/33

    3,828       4,087,954  
Security   Par
(000)
    Value  
County/City/Special District/School District (continued)  

Palomar Community College Distric, GO, Election of 2006, Series C, 5.00%, 08/01/44

  $ 15,140     $ 17,211,909  

San Diego Community College District California, GO, Election of 2002, 5.25%, 08/01/33(a)

    7,732       8,166,902  

San Marcos Unified School District, GO, Election of 2010, Series A, 5.00%, 08/01/38(a)

    15,520       17,277,795  
   

 

 

 
      131,646,363  
Education — 19.0%  

California State University, Refunding RB, Series A:

   

5.00%, 11/01/43

    5,001       5,744,523  

Systemwide, 4.00%, 11/01/35

    12,250       12,964,053  

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

    11,950       13,870,245  

University of California, Refunding RB:

   

Series AR, 5.00%, 05/15/38

    4,000       4,627,360  

Series I, 5.00%, 05/15/40

    21,875       24,879,332  
   

 

 

 
      62,085,513  
Health — 12.7%  

California Statewide Communities Development Authority, Refunding RB, Cottage Health System Obligation, 5.00%, 11/01/43

    26,870       29,817,370  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series L, 5.00%, 05/15/47

    10,280       11,608,999  
   

 

 

 
      41,426,369  
State — 3.6%  

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

    10,115       11,751,454  
   

 

 

 
Transportation — 5.5%  

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

    10,045       11,196,976  

County of San Diego Regional Transportation Commission, Refunding RB, Series A, 5.00%, 04/01/48

    5,750       6,630,986  
   

 

 

 
      17,827,962  
Utilities — 1.5%  

Eastern Municipal Water District, COP, Series H, 5.00%, 07/01/33(a)

    4,748       4,818,615  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 82.7%
(Cost — $264,300,483)

 

    269,556,276  
   

 

 

 

Total Long-Term Investments — 168.2%
(Cost — $527,333,424)

 

    548,217,783  
   

 

 

 
     Shares         

Short-Term Securities — 0.4%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.59%(d)(e)

    1,224,878       1,225,000  
   

 

 

 

Total Short-Term Securities — 0.4%
(Cost — $1,225,000)

 

    1,225,000  
   

 

 

 

Total Investments — 168.6%
(Cost — $528,558,424)

 

    549,442,783  

Other Assets Less Liabilities — 1.5%

 

    5,059,263  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (37.7)%

 

    (122,924,182

VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (32.4)%

 

    (105,694,331
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 325,883,533  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

 

(a) U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b) Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(c) All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expires on August 1, 2018, is $5,101,199. See Note 4 of the Notes to Financial Statements for details.
(d) Annualized 7-day yield as of period end.
 
(e) During the six months ended January 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
07/31/17
     Net
Activity
     Shares
Held at
01/31/18
     Value at
01/31/18
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     1,010,794        214,084        1,224,878      $ 1,225,000      $ 5,145      $ (95    $ (37
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) Includes net capital gain distributions, if applicable.  

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

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Short Contracts:

                 

10-Year U.S. Treasury Note

     81          03/20/18        $ 9,848        $ 190,933  

Long U.S. Treasury Bond

     80          03/20/18          11,825          394,916  

5-Year U.S. Treasury Note

     17          03/29/18          1,950          23,354  
                 

 

 

 
                  $ 609,203  
                 

 

 

 

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 as follows:

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 609,203      $      $ 609,203  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.  

For the six months ended January 31, 2018, 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

   $      $      $      $      $ 186,630      $      $ 186,630  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 664,291      $      $ 664,291  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

26    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 22,897,926  

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 investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $        $ 548,217,783        $        $ 548,217,783  

Short-Term Securities

     1,225,000                            1,225,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,225,000        $ 548,217,783        $        $ 549,442,783  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 609,203        $        $        $ 609,203  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 609,203        $        $             —        $ 609,203  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) See above Schedule of Investments for values in each sector.  
  (b) Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.  

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

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $             —        $ (122,500,632      $             —        $ (122,500,632

VRDP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (228,400,632      $        $ (228,400,632
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended January 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (unaudited)

January 31, 2018

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages based on Net Assets)

 

Security  

Par

(000)

    Value  

Municipal Bonds

 

Alabama — 0.3%  

City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35

  $ 545     $ 605,669  
   

 

 

 
Arizona — 1.4%  

Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.38%, 07/01/50(a)

    1,645       1,736,577  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46(a)

    1,070       1,102,550  
   

 

 

 
      2,839,127  
California — 11.8%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/42

    1,645       1,807,345  

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 07/01/19(b)

    710       755,035  

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

    145       160,954  

California Statewide Communities Development Authority, RB, Series A(a):

   

Lancer Educational student Housing Project, 5.00%, 06/01/46

    1,680       1,777,188  

Loma Linda University Medical Center, 5.00%, 12/01/46

    290       309,082  

California Statewide Communities Development Authority, Refunding RB, Lancer Educational student Housing Project, Series A, 5.00%, 06/01/36(a)

    1,360       1,445,571  

City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT:

   

5.50%, 05/01/28

    1,065       1,230,799  

5.25%, 05/01/33

    830       938,946  

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

    1,500       1,655,115  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior Series A-1, 5.75%, 06/01/47

    255       257,428  

Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33

    1,620       1,924,398  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series J:

   

5.25%, 05/15/23(b)

    2,905       3,408,117  

5.25%, 05/15/38

    825       942,365  

San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 02/01/19(b)

    1,310       1,362,859  

State of California, GO, Various Purposes, 6.00%, 03/01/33

    2,535       2,766,141  

State of California Public Works Board, LRB, Various Capital Projects, Series I, 5.50%, 11/01/31

    1,000       1,171,320  

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33

    835       959,056  

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/40

    625       736,800  
   

 

 

 
      23,608,519  
Colorado — 1.3%  

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

    345       353,511  

City & County of Denver Colorado Airport System, ARB, Series A, AMT:

   

5.50%, 11/15/28

    1,000       1,149,600  

5.50%, 11/15/30

    330       377,084  

5.50%, 11/15/31

    400       455,928  

Colorado Health Facilities Authority, Refunding RB, Frasier Meadows Retirement Community Project, Series A, 5.25%, 05/15/37

    290       320,001  
   

 

 

 
      2,656,124  
Security  

Par

(000)

    Value  
Delaware — 0.3%  

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

  $ 500     $ 527,950  
   

 

 

 
District of Columbia — 0.1%  

District of Columbia, Refunding RB, Georgetown University Issue, 5.00%, 04/01/42

    190       215,034  
   

 

 

 
Florida — 7.6%  

City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33

    675       774,360  

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

    985       1,094,010  

County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT, 5.50%, 10/01/29

    1,995       2,281,981  

County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32

    2,000       2,194,840  

County of Lee Florida HFA, RB, S/F Housing, Multi-County Program, Series A-2, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 6.00%, 09/01/40

    145       147,395  

County of Manatee Florida HFA, RB, S/F Housing, Series A, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.90%, 09/01/40

    135       136,204  

County of Miami-Dade Florida, RB, Seaport Department:

   

Series A, 5.38%, 10/01/33

    1,170       1,326,078  

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

    525       620,744  

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

    700       817,740  

County of Miami-Dade Florida Aviation, Refunding ARB, Series A, AMT, 5.00%, 10/01/31

    2,440       2,680,925  

County of Orange Florida Health Facilities Authority, Refunding RB, Presbyterian Retirement Communities Project, 5.00%, 08/01/41

    1,000       1,100,270  

Lakewood Ranch Stewardship District, Special Assessment Bonds, Lakewood National & Polo Run Projects:

   

5.25%, 05/01/37

    240       254,782  

5.38%, 05/01/47

    260       275,421  

Reedy Creek Florida Improvement District, GO, Series A, 5.25%, 06/01/32

    1,200       1,374,660  
   

 

 

 
      15,079,410  
Hawaii — 0.6%  

State of Hawaii, Department of Transportation, COP, AMT:

   

5.25%, 08/01/25

    485       549,907  

5.25%, 08/01/26

    525       592,111  
   

 

 

 
      1,142,018  
Illinois — 16.7%  

Chicago Board of Education, GO, Series H, 5.00%, 12/01/36

    295       302,584  

Chicago Board of Education, GO, Refunding, Dedicated Revenues:

   

Series D, 5.00%, 12/01/25

    530       565,669  

Series F, 5.00%, 12/01/22

    400       424,788  

Series G, 5.00%, 12/01/34

    290       298,842  

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%, 01/01/41

    1,000       1,097,390  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series C, 6.50%, 01/01/21(b)

    6,065       6,900,272  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts:

   

5.25%, 12/01/36

    1,000       1,089,500  

5.25%, 12/01/40

    1,000       1,088,370  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago:

   

5.50%, 12/01/38

    1,000       1,066,020  

5.25%, 12/01/43

    1,500       1,564,065  
 

 

 

28    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages based on Net Assets)

 

Security  

Par

(000)

    Value  
Illinois (continued)  

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

  $ 4,000     $ 4,475,560  

Illinois Finance Authority, Refunding RB:

   

Central DuPage Health, Series B, 5.38%, 11/01/19(b)

    1,200       1,279,008  

Northwestern Memorial Hospital, Series A, 6.00%, 08/15/19(b)

    4,160       4,445,834  

Presence Health Network, Series C, 4.00%, 02/15/41

    910       906,751  

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project Bonds:

   

Series A, 0.00%, 12/15/56(c)

    2,965       431,704  

Series A, 5.00%, 06/15/57

    810       872,734  

Series B, 0.00%, 12/15/54(c)

    4,450       723,481  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    1,370       1,537,373  

6.00%, 06/01/21

    390       443,933  

State of Illinois, GO:

   

5.25%, 02/01/32

    2,200       2,316,578  

5.50%, 07/01/33

    1,000       1,059,850  

5.50%, 07/01/38

    415       438,809  
   

 

 

 
      33,329,115  
Indiana — 4.4%  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT, 6.75%, 01/01/34

    1,350       1,594,350  

County of Allen Indiana, RB, StoryPoint Fort Wayne Project, Series A-1(a):

   

6.63%, 01/15/34

    170       178,833  

6.75%, 01/15/43

    355       371,969  

6.88%, 01/15/52

    515       540,750  

Indiana Finance Authority, Refunding RB, Marquette Project, 4.75%, 03/01/32

    700       718,235  

Indiana Municipal Power Agency, RB, Series B, 6.00%, 01/01/19(b)

    4,525       4,714,145  

Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 01/15/51(a)

    720       749,081  
   

 

 

 
      8,867,363  
Iowa — 1.1%  

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:

   

5.50%, 12/01/22

    5       5,087  

5.25%, 12/01/25

    865       914,236  

5.25%, 12/01/50(d)

    1,255       1,255,000  
   

 

 

 
      2,174,323  
Kansas — 2.1%  

City of Lenexa Kansas, Refunding RB, Lakeview Village, Inc., Series A, 5.00%, 05/15/43

    655       675,076  

Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C, 5.50%, 11/15/29

    3,275       3,479,785  
   

 

 

 
      4,154,861  
Louisiana — 2.3%  

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

    1,500       1,709,640  

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

    1,420       1,580,645  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 05/15/29

    1,195       1,249,683  
   

 

 

 
      4,539,968  
Maine — 0.4%  

Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 07/01/32

    765       859,217  
   

 

 

 
Security  

Par

(000)

    Value  
Maryland — 0.4%  

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

  $ 185     $ 192,596  

City of Baltimore Maryland, Tax Allocation Bonds, Center/West Development, Series A, 5.38%, 06/01/36

    585       596,162  

Maryland Health & Higher Educational Facilities Authority, RB, Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    20       22,697  
   

 

 

 
      811,455  
Massachusetts — 2.4%  

Massachusetts HFA, Refunding RB, AMT:

   

Series B, 5.50%, 06/01/41

    975       986,983  

Series C, 5.35%, 12/01/42

    1,105       1,135,686  

Series F, 5.70%, 06/01/40

    1,645       1,671,846  

Massachusetts Housing Finance Agency, RB, Series D, 3.95%, 12/01/52

    950       921,937  
   

 

 

 
      4,716,452  
Michigan — 2.7%            

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 07/01/41

    1,805       2,011,799  

Michigan State Building Authority, Refunding RB, Facilities Program Series:

   

6.00%, 10/15/18(b)

    760       783,856  

6.00%, 10/15/18(b)

    450       464,126  

6.00%, 10/15/38

    40       41,244  

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 09/01/18(b)

    1,970       2,047,953  
   

 

 

 
      5,348,978  
Montana — 0.1%            

City of Kalispell Montana, Refunding RB, Immanuel Lutheran Corporation Project, Series A, 5.25%, 05/15/37

    170       179,051  
   

 

 

 
Nevada — 3.3%            

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 04/01/19(b)

    2,850       2,998,371  

County of Clark Nevada Airport System, ARB, Series B, 5.75%, 07/01/42

    3,375       3,641,254  
   

 

 

 
      6,639,625  
New Hampshire — 0.5%            

New Hampshire Housing Finance Authority, RB, Cimarron, Whittier Falls & Marshall (FHA), 4.00%, 07/01/52

    1,000       970,830  
   

 

 

 
New Jersey — 5.4%            

New Jersey EDA, RB, Private Activity Bond, Goethals Bridge Replacement Project, AMT (AGM), 5.00%, 01/01/31

    900       1,008,765  

New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, Series A, AMT, 5.70%, 10/01/39

    2,250       2,376,382  

New Jersey Transportation Trust Fund Authority, RB, Transportation System:

   

Series A, 5.88%, 12/15/38

    2,670       2,750,207  

Series AA, 5.50%, 06/15/39

    2,475       2,655,130  

South Jersey Port Corp., RB, Marine Terminal, Series B, AMT, 5.00%, 01/01/42

    230       246,135  

Tobacco Settlement Financing Corp., Refunding RB, Series 1A, 5.00%, 06/01/41

    1,690       1,665,850  
   

 

 

 
      10,702,469  
New York — 1.7%            

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass- Through Turbo, Series A,
6.25%, 06/01/41(a)

    1,100       1,136,399  

New York Liberty Development Corp., Refunding RB, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

    1,650       1,768,157  
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages based on Net Assets)

 

Security  

Par

(000)

    Value  
New York (continued)            

New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 01/01/50

  $ 475     $ 521,797  
   

 

 

 
      3,426,353  
Ohio — 2.8%            

Allen County OH Hospital Facilities Revenue, Refunding RB, Series A, 4.00%, 08/01/38

    900       919,368  

County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 06/01/20(b)

    3,115       3,371,769  

County of Franklin Ohio, RB, Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46

    90       101,657  

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

    1,000       1,139,010  
   

 

 

 
      5,531,804  
Oklahoma — 0.3%            

County of Tulsa Oklahoma Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/37

    450       512,100  
   

 

 

 
Pennsylvania — 4.3%            

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

    585       623,756  

Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 04/01/39

    1,075       1,128,309  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

    1,000       1,057,560  

Pennsylvania Housing Finance Agency, RB, ACE, Series 125B, AMT, 3.70%, 10/01/47

    1,170       1,135,041  

Pennsylvania Turnpike Commission, RB, Series A(b):

   

5.63%, 12/01/20

    1,470       1,621,881  

5.63%, 12/01/20

    545       601,309  

State Public School Building Authority, Refunding RB, Fluvanna County School Philadelphia, 5.00%, 06/01/36

    625       674,456  

Township of Bristol Pennsylvania School District, GO, 5.25%, 06/01/37

    1,500       1,682,325  
   

 

 

 
      8,524,637  
Puerto Rico — 1.1%            

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 05/15/39

    1,200       1,103,988  

5.63%, 05/15/43

    1,145       1,046,496  
   

 

 

 
      2,150,484  
Rhode Island — 2.3%            

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    525       571,258  

Series B, 4.50%, 06/01/45

    3,950       4,003,957  
   

 

 

 
      4,575,215  
South Carolina — 4.7%            

County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38

    2,505       2,911,937  

County of Charleston South Carolina Airport District, ARB, Series A, AMT:

   

6.00%, 07/01/38

    1,955       2,252,336  

5.50%, 07/01/41

    1,000       1,125,640  

State of South Carolina Ports Authority, RB, AMT, 5.25%, 07/01/50

    1,280       1,422,477  

State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55

    1,500       1,675,095  
   

 

 

 
      9,387,485  
Security  

Par

(000)

    Value  
Texas — 7.4%            

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien(b):

   

5.75%, 01/01/21

  $ 1,000     $ 1,113,440  

6.00%, 01/01/21

    2,600       2,913,326  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 08/15/20(b)

    3,515       3,895,077  

Dallas-Fort Worth Texas International Airport, ARB, Joint Improvement, AMT:

   

Series A, 5.00%, 11/01/38

    1,365       1,456,127  

Series H, 5.00%, 11/01/37

    1,535       1,670,249  

North Texas Tollway Authority, Refunding RB, 1st Tier, Series K-1 (AGC), 5.75%, 01/01/19(b)

    1,000       1,039,070  

Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38

    710       804,352  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39

    1,700       1,849,107  
   

 

 

 
      14,740,748  
Utah — 0.3%            

Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/47

    595       670,107  
   

 

 

 
Virginia — 3.5%            

City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 01/01/43

    560       616,711  

County of Fairfax Virginia IDA, Refunding RB, Health Care-Inova Health(b):

   

5.50%, 05/15/19

    610       640,787  

5.50%, 05/15/19

    1,135       1,193,782  

State of Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18(b)

    800       833,488  

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

    1,395       1,351,308  

Virginia Small Business Financing Authority, RB, AMT:

   

Senior Lien, Elizabeth River Crossings OpCo LLC Project, 6.00%, 01/01/37

    1,715       1,936,012  

Transform 66 P3 Project, 5.00%, 12/31/52

    315       347,549  
   

 

 

 
      6,919,637  
Wisconsin — 1.1%            

Public Finance Authority, Refunding RB, Mery’s Wood at Marylhurst Projects, 5.25%, 05/15/52(a)

    1,015       1,093,754  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Medical College of Wisconsin, Inc., 4.00%, 12/01/46

    1,085       1,111,539  
   

 

 

 
      2,205,293  
   

 

 

 

Total Municipal Bonds — 94.7%
(Cost — $175,769,503)

 

    188,611,421  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts — 73.9%(e)

 

Alabama — 0.6%  

Auburn University, Refunding RB, Series A, 4.00%, 06/01/41

    1,080       1,125,830  
   

 

 

 
California — 22.5%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area:

   

4.00%, 04/01/42

    1,998       2,098,847  

Series F-1, 5.63%, 04/01/19(b)

    2,681       2,812,131  

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/18(b)(f)

    4,200       4,308,080  

Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 08/01/20(b)

    6,000       6,502,350  
 

 

 

30    2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages based on Net Assets)

 

Security  

Par

(000)

    Value  
California (continued)  

Los Angeles Community College District California, GO,
Election of 2008(b):

   

Series C, 5.25%, 08/01/20(f)

  $ 5,251     $ 5,722,797  

Refunding Series A, 6.00%, 08/01/19

    7,696       8,218,603  

Los Angeles Unified School District California, GO, Series I, 5.00%, 01/01/34

    790       826,292  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2, Series A, 5.00%, 10/01/47

    1,980       2,272,733  

San Diego Public Facilities Financing Authority Water, RB, Series B, 5.50%, 08/01/19(b)

    8,412       8,911,064  

University of California, RB, Series O, 5.75%, 05/15/19(b)

    3,001       3,166,417  
   

 

 

 
      44,839,314  
Colorado — 1.1%  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 07/01/34(f)

    2,149       2,236,108  
   

 

 

 
District of Columbia — 3.3%  

District of Columbia, RB, Series A, 5.50%, 12/01/30(f)

    2,804       2,998,103  

District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 5.50%, 10/01/18(b)

    3,507       3,601,550  
   

 

 

 
      6,599,653  
Florida — 2.9%  

County of Hillsborough Florida Aviation Authority, ARB, Tampa International Airport, Series A, AMT (AGC), 5.50%, 10/01/38

    3,869       3,960,949  

South Miami Health Facilities Authority, Refunding RB, Baptist Health South Florida, 5.00%, 08/15/47

    1,575       1,770,568  
   

 

 

 
      5,731,517  
Illinois — 2.7%  
Education — 2.7%  

State of Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 07/01/18(b)

    5,300       5,408,306  
   

 

 

 
Nevada — 8.9%  

County of Clark Nevada Water Reclamation District, GO(b):

   

Limited Tax, 6.00%, 07/01/18

    5,000       5,097,025  

Series B, 5.50%, 07/01/19

    5,668       5,981,912  

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

    6,070       6,674,208  
   

 

 

 
      17,753,145  
New Hampshire — 1.1%  

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 06/01/19(b)(f)

    2,159       2,265,296  
   

 

 

 
New Jersey — 3.6%  

New Jersey Housing & Mortgage Finance Agency, RB,
S/F Housing, Series CC, 5.25%, 10/01/29

    2,130       2,176,489  

New Jersey Transportation Trust Fund Authority, RB, Transportation System:

   

Series A (AMBAC) (AGM), 5.00%, 12/15/32

    4,000       4,008,720  

Series B, 5.25%, 06/15/36(f)

    1,000       1,056,346  
   

 

 

 
      7,241,555  
New York — 16.6%  

City of New York New York Municipal Water Finance Authority, Refunding RB:

   

Series FF, 5.00%, 06/15/45

    3,859       4,278,162  

Water & Sewer System, 2nd General Resolution, Series BB, 5.25%, 06/15/44

    4,408       4,944,639  

Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40

    2,505       2,635,886  
Security  

Par

(000)

    Value  
New York (continued)  

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 01/15/39

  $ 2,499     $ 2,585,818  

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 02/15/47(f)

    1,290       1,414,023  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    3,000       3,442,643  

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

    4,365       4,851,022  

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(f)

    2,560       2,883,839  

New York State Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 03/15/19(b)

    5,700       5,939,343  
   

 

 

 
      32,975,375  
Pennsylvania — 0.9%  

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

    1,514       1,753,670  
   

 

 

 
South Carolina — 1.7%  

South Carolina Public Service Authority, Refunding RB, Series A(b):

   

5.50%, 01/01/19(f)

    258       267,655  

5.50%, 01/01/19

    2,986       3,094,845  
   

 

 

 
      3,362,500  
Texas — 6.9%  

City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 02/01/19(b)(f)

    3,989       4,135,858  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, Texas Children’s Hospital Project, 5.50%, 10/01/39

    5,400       5,708,340  

North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 09/01/21(b)

    3,480       3,911,242  
   

 

 

 
      13,755,440  
Utah — 1.1%  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/41

    1,994       2,082,971  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 73.9%
(Cost — $140,557,904)

 

    147,130,680  
   

 

 

 

Total Long-Term Investments — 168.6%
(Cost — $316,327,407)

 

    335,742,101  
   

 

 

 
     Shares         

Short-Term Securities — 0.2%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.59%(g)(h)

    454,810       454,855  
   

 

 

 

Total Short-Term Securities — 0.2%
(Cost — $454,855)

 

    454,855  
   

 

 

 

Total Investments — 168.8%
(Cost — $316,782,262)

 

    336,196,956  

Other Assets Less Liabilities — 1.9%

 

    4,083,820  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (41.0)%

 

    (81,896,483

VRDP Shares at Liquidation Value, Net of Deferred Offering

Costs — (29.7)%

 

 

    (59,230,443
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 199,153,850  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (unaudited) (continued)

January 31, 2018

  

BlackRock MuniYield Investment Fund (MYF)

 

 

(a)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(c)  Zero-coupon bond.
(d)  Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.
(e)  Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.
(f)  All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement(s), which expires May 7, 2018 to April 1, 2025 is $19,649,357. See Note 4 of the Notes to Financial Statements for details.
(g)  Annualized 7-day yield as of period end.
 
(h)  During the six months ended January 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
07/31/17
     Net
Activity
     Shares
Held at
01/31/18
     Value at
01/31/18
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     1,140,114        (685,304      454,810      $ 454,855      $ 3,421      $ 71      $ (69
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Includes net capital gain distributions, if applicable.  

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

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Short Contracts: