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: 07/31/2018

 


Item 1 – Report to Stockholders

 


JULY 31, 2018

 

ANNUAL REPORT

  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 July 31, 2018, the strongest corporate profits in seven years drove the equity market higher, while rising interest rates constrained bond returns. Though the market’s appetite for risk remained healthy, risk-taking was tempered somewhat, as shorter-term, higher-quality securities led the bond market, and U.S. equities outperformed most international stock markets.

Strong equity performance worldwide was driven by synchronized economic growth across the most influential economies. However, volatility in emerging market stocks rose, as U.S.-China trade relations and debt concerns weighed heavily on the Chinese stock market, while Turkey became embroiled in a currency crisis shortly after the end of the reporting period.

Short-term U.S. Treasury interest rates rose the fastest, while longer-term rates slightly increased, leading to a negative return for long-term U.S. Treasuries and a substantial flattening of the yield curve. Many investors are concerned with the flattening yield curve as a harbinger of recession, but given the extraordinary monetary measures in the last decade, we believe a more accurate barometer for the economy is the returns along the risk spectrums in stock and bond markets. Although the fundamentals in credit markets remained relatively solid, investment-grade bonds declined slightly, and high-yield bonds posted modest returns.

In response to rising growth and inflation, the U.S. Federal Reserve (the “Fed”) increased short-term interest rates three times during the reporting period. The Fed also reduced its $4.3 trillion balance sheet by approximately $180 billion during the reporting period, gradually reversing the unprecedented stimulus measures it enacted after the financial crisis. Meanwhile, the European Central Bank announced that its bond-purchasing program would conclude at the end of the year, while also expressing its commitment to low interest rates. In contrast, the Bank of Japan continued to expand its balance sheet through bond purchasing while lowering its expectations for inflation.

The U.S. economy continued to gain momentum despite the Fed’s modest reduction of economic stimulus; unemployment declined to 3.9%, wages increased, and the number of job openings reached a record high. Strong economic performance may justify a more rapid pace of rate hikes in 2018, as the headline inflation rate and investors’ expectations for inflation have already surpassed the Fed’s target of 2.0%.

While U.S. monetary policy is seeking to restrain economic growth and inflation, fiscal policy has produced new sources of growth that could nourish the economy for the next few years. Corporate tax cuts and repatriation of capital held abroad could encourage a virtuous cycle of business spending. Lower individual tax rates coupled with the robust job market may refresh consumer spending.

We continue to believe the primary risks to economic expansion are trade protectionism, rapidly rising interest rates, and geopolitical tension. Given the deflationary forces of technology and globalization, a substantial increase in inflation is unlikely to materialize as long as the unemployment rate remains above 3.0%. However, we are closely monitoring trade protectionism and the rise of populism in Western nations. In particular, the outcome of trade negotiations between the United States and China is likely to influence the global growth trajectory and set the tone for free trade in many other nations.

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 July 31, 2018
     6-month   12-month

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

  0.70%   16.24%

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

  6.75   18.73

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

  (5.12)   6.40

Emerging market equities
(MSCI Emerging Markets Index)

  (11.94)   4.36

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

  0.85   1.43

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

  (0.95)   (3.66)

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

  (0.45)   (0.80)

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

  1.20   1.21

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

  0.65   2.60
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  

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

     41  

Statements of Operations

     42  

Statements of Changes in Net Assets

     43  

Statements of Cash Flows

     46  

Financial Highlights

     47  

Notes to Financial Statements

     52  

Report of Independent Registered Public Accounting Firm

     63  

Important Tax Information

     63  

Disclosure of Investment Advisory Agreements

     64  

Automatic Dividend Reinvestment Plans

     68  

Director and Officer Information

     69  

Additional Information

     72  

Glossary of Terms Used in this Report

     75  

 

 

     3  


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

 

Municipal Market Conditions

Municipal bonds experienced positive performance during the period despite rising interest rates resulting from continued Fed monetary policy normalization, firmer economic data, and the anticipated impacts of fiscal stimulus. 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 July 31, 2018, municipal bond funds experienced net inflows of approximately $24 billion (based on data from the Investment Company Institute).

 

For the same 12-month period, total new issuance was moderate from a historical perspective at $370 billion (well below the $408 billion issued in the prior 12-month period), but displayed significant month to month volatility. 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 has suppressed supply in 2018, providing a powerful technical tailwind.   S&P Municipal Bond Index
  Total Returns as of July 31, 2018
    6 months: 1.20%
  12 months: 1.21%
 

A Closer Look at Yields

 

LOGO

From July 31, 2017 to July 31, 2018, yields on AAA-rated 30-year municipal bonds increased by 27 basis points (“bps”) from 2.74% to 3.01%, while 10-year rates increased by 50 bps from 1.95% to 2.45% and 5-year rates increased by 76 bps from 1.21% to 1.97% (as measured by Thomson Municipal Market Data). The municipal yield curve bear flattened over the 12-month period with the spread between 2- and 30-year maturities flattening by 41 bps, however remained a significant 72 bps steeper than the corresponding U.S. Treasury curve.

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. 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 problems among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — continue to exhibit improved credit fundamentals. However, several states with the largest unfunded pension liabilities are faced with elevated borrowing costs and difficult budgetary decisions. Across the country on the local level, property values support credit stability. Revenue bonds continue to drive performance as investors continue to seek higher yield bonds in the tobacco sector. 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 July 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 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 July 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 July 31, 2018 ($12.57)(a)

  3.82%

Tax Equivalent Yield(b)

  7.58%

Current Monthly Distribution per Common Share(c)

  $0.0400

Current Annualized Distribution per Common Share(c)

  $0.4800

Economic Leverage as of July 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 49.62%, 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 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 12 months ended July 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MNE(a)(b)

    (7.16 )%       0.63

Lipper Intermediate Municipal Debt Funds(c)

    (5.07      0.94  

 

  (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 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:

 

 

The U.S. municipal bond market posted a narrow gain in the 12-month period, with the contribution from yield offsetting negative price performance. Although tax-exempt issues sold off sharply in early 2018 due to a spike in U.S. Treasury yields, the market was supported by the improving fundamentals of state and local issuers, as well as low new-issue supply from January onward. Short-term bonds, which have above average sensitivity to Fed policy, generally lagged longer-term issues.

 

 

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.

 

 

Positions in bonds with maturities in the 12- to 18-year range was beneficial relative to shorter maturities, as the former category offered both higher yields and strong price performance. However, the Fund’s intermediate-maturity mandate limited it from participating in the even stronger returns of bonds with maturities of 18 years and above.

 

 

Allocations to credits rated AA and A, highlighted by the local tax-backed and education sectors, further aided results.

 

 

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

 

 

The Fund’s use of leverage, while amplifying the impact of weak price performance, was a net contributor since it provided additional income. However, the cost of leverage increased due to rising short-term interest rates.

 

 

Positions in bonds with shorter and intermediate maturities, which lagged those with longer-dated maturities, detracted. The Fund’s allocation to higher-quality securities detracted relative to lower-rated issues, as the latter category provided higher income and stronger price performance.

 

 

6    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


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

 

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

 

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

Market Price

  $ 12.57      $ 14.07        (10.66 )%     $ 14.43      $ 12.51  

Net Asset Value

    14.98        15.47        (3.17      15.64        14.80  

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

 

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector

 

07/31/18

   

07/31/17

 

Education

    22     24

County/City/Special District/School District

    22       21  

Transportation

    18       22  

State

    15       10  

Health

    10       10  

Utilities

    6       6  

Corporate

    4       3  

Tobacco

    2       1  

Housing

    1       3  

 

   

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

    3

2019

    8  

2020

    6  

2021

    13  

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

 

07/31/18

   

07/31/17

 

AAA/Aaa

    13     11

AA/Aa

    40       50  

A

    27       20  

BBB/Baa

    13       13  

BB/Ba

    1       2  

N/R

    6       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 July 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 July 31, 2018 ($14.45)(a)

  4.32%

Tax Equivalent Yield(b)

  7.90%

Current Monthly Distribution per Common Share(c)

  $0.0520

Current Annualized Distribution per Common Share(c)

  $0.6240

Economic Leverage as of July 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 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 12 months ended July 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MZA(a)(b)

    (8.71 )%       1.22

Lipper Other States Municipal Debt Funds(c)

    (7.04      0.69  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

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

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend 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:

 

 

The U.S. municipal bond market posted a narrow gain in the 12-month period, with the contribution from yield offsetting negative price performance. Although tax-exempt issues sold off sharply in early 2018 due to a spike in U.S. Treasury yields, the market was supported by the improving fundamentals of state and local issuers, as well as low new-issue supply from January onward. Short-term bonds, which have above-average sensitivity to Fed policy, generally lagged longer-term issues.

 

 

Arizona continued to benefit from both improving economic conditions and positive demographic trends. However, the state’s municipal market underperformed the national indexes due to its shorter maturity profile.

 

 

Given that bond prices declined somewhat, the Fund’s return was primarily derived from income. The Fund’s use of leverage, while amplifying the impact of weak price performance, provided additional income and was therefore a net contributor. However, the cost of leverage increased due to using short-term interest rates.

 

 

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

 

 

Investments in lower-rated bonds (those rated A and below), which outperformed higher-quality issues, contributed positively. From a sector perspective, the Fund’s allocation to tobacco issues was beneficial, while its holdings in the health care and utilities sectors detracted.

 

 

The Fund’s positions in bonds with two- to five-year maturities hurt performance, as this area lagged the rest of the market. This allocation is largely comprised of advance-refunded bonds that the Fund purchased in a higher-yield environment.

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 ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

  $ 14.45      $ 16.59        (12.90 )%     $ 17.40      $ 14.19  

Net Asset Value

    14.06        14.56        (3.43      14.69        13.93  

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

LOGO

Overview of the Fund’s Total Investments *

 

 

SECTOR ALLOCATION

 

Sector

 

07/31/18

   

07/31/17

 

Utilities

    27     21

Education

    22       23  

County/City/Special District/School District

    19       19  

Health

    12       12  

Corporate

    12       11  

State

    5       9  

Transportation

    2       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

    6

2019

    8  

2020

    6  

2021

    9  

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

 

07/31/18

   

07/31/17

 

AAA/Aaa

    4     9

AA/Aa

    58       55  

A

    16       15  

BBB/Baa

    11       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 July 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 July 31, 2018 ($13.19)(a)

  4.73%

Tax Equivalent Yield(b)

  10.31%

Current Monthly Distribution per Common Share(c)

  $0.0520

Current Annualized Distribution per Common Share(c)

  $0.6240

Economic Leverage as of July 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 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 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 12 months ended July 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYC(a)(b)

    (9.91 )%       2.02

Lipper California Municipal Debt Funds(c)

    (6.07      1.15  

 

  (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 investment of dividends and/or distributions at NAV on the ex-dividend 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:

 

 

The U.S. municipal bond market posted a narrow gain in the 12-month period, with the contribution from yield offsetting negative price performance. Although tax-exempt issues sold off sharply in early 2018 due to a spike in U.S. Treasury yields, the market was supported by the improving fundamentals of state and local issuers, as well as low new-issue supply from January onward. Short-term bonds, which have above-average sensitivity to Fed policy, generally lagged longer-term issues.

 

 

After a period of outperformance, California municipal bonds trailed the national market over the past 12 months due to the combination of richer valuations, tighter yield spreads, and significant new-issue supply.

 

 

Income was the primary driver of the Fund’s positive return, as it offset the effects of falling bond prices and the amortization of bond premiums. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A premium occurs when the price of the bond has increased due to a decline in interest rates.)

 

 

Holdings that were purchased in a higher-rate environment and that have lower duration characteristics contributed to performance. These positions generate generous income and are less sensitive to the negative effects of rising interest rates. (Duration is a measure of interest rate sensitivity.)

 

 

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

 

 

The Fund’s use of leverage, while amplifying the effect of falling prices, contributed to performance by augmenting portfolio income. However, the cost of leverage increased due to using short-term interest rates.

 

 

On the negative side, the Fund’s positions in shorter-term bonds detracted from performance. Higher-quality investment-grade holdings (those rated AA and AAA), which fared worse than those rated below investment grade, also detracted. Strong inflows into high-yield products fueled greater price appreciation for lower-rated issues. Believing this translated to minimal value in high-yield California municipal bonds, the investment adviser maintained an underweight in this area.

 

 

10    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


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

 

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

 

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

Market Price

  $ 13.19      $ 15.43        (14.52 )%     $ 15.71      $ 13.10  

Net Asset Value

    15.11        15.61        (3.20      15.79        14.91  

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

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector

 

07/31/18

   

07/31/17

 

County/City/Special District/School District

    31     40

Education

    24       14  

Health

    15       16  

Transportation

    11       12  

State

    8       6  

Utilities

    6       6  

Tobacco

    3       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

    2

2019

    12  

2020

    7  

2021

    9  

2022

    3  

 

  (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

 

07/31/18

   

07/31/17

 

AAA/Aaa

    6     5

AA/Aa

    70       68  

A

    16       21  

BBB/Baa

    2       1  

BB/Ba

    1       1  

B/B

    5       3  

N/R(b)

          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 July 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 July 31, 2018 ($13.69)(a)

  6.09%

Tax Equivalent Yield(b)

  10.29%

Current Monthly Distribution per Common Share(c)

  $0.0695

Current Annualized Distribution per Common Share(c)

  $0.8340

Economic Leverage as of July 31, 2018(d)

  42%

 

  (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 12 months ended July 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYF(a)(b)

    (11.00 )%       1.61

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

    (4.84      1.88  

 

  (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 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:

 

 

The U.S. municipal bond market posted a narrow gain in the 12-month period, with the contribution from yield offsetting negative price performance. Although tax-exempt issues sold off sharply in early 2018 due to a spike in U.S. Treasury yields, the market was supported by the improving fundamentals of state and local issuers, as well as low new-issue supply from January onward. Short-term bonds, which have above-average sensitivity to Fed policy, generally lagged longer-term issues.

 

 

Given the downturn in bond prices, portfolio income — enhanced by leverage — made the largest positive contribution to performance. However, the use of leverage also amplified the effect of market weakness. In addition, the cost of leverage rose due to the increase in short-term interest rates.

 

 

The Fund’s holdings in BBB-rated and high yield bonds aided returns, as lower-quality bonds outpaced higher-rated issues. At the sector level, tobacco and health care were the largest beneficiaries of this trend.

 

 

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

 

 

Although yields rose during the period, reinvestment was generally a drag on income as the proceeds from maturing or called bonds were reinvested at significantly lower yields.

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 ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

  $ 13.69      $ 16.34        (16.22 )%     $ 16.57      $ 13.58  

Net Asset Value

    14.29        14.94        (4.35      15.04        14.23  

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

 

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector

 

07/31/18

   

07/31/17

 

Transportation

    25     28

County/City/Special District/School District

    19       20  

Health

    17       16  

Utilities

    14       14  

Education

    7       8  

State

    7       5  

Tobacco

    5       3  

Housing

    3       2  

Corporate

    3       4  

 

   

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

    8

2019

    28  

2020

    11  

2021

    15  

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

 

07/31/18

   

07/31/17

 

AAA/Aaa

    8     8

AA/Aa

    47       50  

A

    21       22  

BBB/Baa

    10       9  

BB/Ba

    4       3  

B/B

    4       1  

N/R(b)

    6       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 July 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 July 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. At a special shareholder meeting on March 28, 2018, the requisite shareholders of the Fund, BLJ and BNJ approved the reorganization, which was effective June 11, 2018.

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 July 31, 2018 ($13.51)(a)

  5.37%

Tax Equivalent Yield(b)

  10.69%

Current Monthly Distribution per Common Share(c)

  $0.0605

Current Annualized Distribution per Common Share(c)

  $0.7260

Economic Leverage as of July 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 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 12 months ended July 31, 2018 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYJ(a)(b)

    (13.57 )%       3.94

Lipper New Jersey Municipal Debt Funds(c)

    (5.76      2.25  

 

  (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 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:

 

 

The U.S. municipal bond market posted a narrow gain in the 12-month period, with the contribution from yield offsetting negative price performance. Although tax-exempt issues sold off sharply in early 2018 due to a spike in U.S. Treasury yields, the market was supported by the improving fundamentals of state and local issuers, as well as low new-issue supply from January onward. Short-term bonds, which have above-average sensitivity to Fed policy, generally lagged longer-term issues.

 

 

New Jersey bonds outpaced the national market due in part to investors’ positive reaction to legislation that redirected roughly $1 billion annually in lottery proceeds to the state’s pension funds.

 

 

Given that bond prices declined somewhat, the Fund’s return was primarily derived from income.

 

 

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

 

 

At the sector level, positions in state tax-backed issues made the largest contribution to performance, followed by transportation and education.

 

 

Long-term bonds outperformed short-term debt, leading to a flattening of the yield curve. In this environment, the Fund’s positions in bonds with maturities of 20 years and above generated positive returns. Longer-bonds’ stronger performance also reflected their higher yields versus the market as a whole. Conversely, the Fund’s positions in shorter-maturity debt weighed on results as interest rate increases by the Fed continued to push short-term yields higher.

 

 

Positions in higher-yielding, lower-rated bonds performed well and outpaced the overall market. The category was boosted by improving credit fundamentals and the combination of strong investor demand and limited new-issue supply.

 

 

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.

 

 

14    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


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

 

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

 

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

Market Price

  $ 13.51      $ 16.58        (18.52 )%     $ 16.94      $ 13.51  

Net Asset Value

    15.57        15.89        (2.01      16.16        15.44  

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

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector

 

07/31/18

   

07/31/17

 

Transportation

    37     37

County/City/Special District/School District

    18       16  

Education

    15       17  

State

    10       12  

Corporate

    7       7  

Health

    6       6  

Tobacco

    3       2  

Housing

    3       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

    9

2019

    10  

2020

    6  

2021

    18  

2022

    10  

 

  (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

 

07/31/18

   

07/31/17

 

AAA/Aaa

    4     4

AA/Aa

    33       35  

A

    24       29  

BBB/Baa

    30       26  

BB/Ba

    6       2  

N/R

    3       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 July 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

July 31, 2018

  

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

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 128.4%

 

New York — 128.4%  
Corporate — 5.7%  

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

  $ 850     $ 932,408  

New York Transportation Development Corp., ARB, Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, AMT, 5.00%, 01/01/33

    1,000       1,117,690  

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

    1,000       1,053,980  

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

    500       500,280  
   

 

 

 
     
3,604,358
 
County/City/Special District/School District — 23.8%  

City of Glen Cove New York, GO:

   

Series A, 5.00%, 01/01/25

    195       218,806  

Series A, 5.00%, 01/01/26

    105       118,121  

Refunding, 5.00%, 01/15/25

    980       1,100,305  

Refunding, 5.00%, 01/15/26

    520       585,291  

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

   

5.25%, 08/01/22

    2,000       2,251,800  

5.00%, 08/01/30

    1,250       1,391,150  

City of New York, GO:

   

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

    700       784,175  

Sub-Series I-1, 5.50%, 04/01/19(b)

    995       1,022,243  

Sub-Series I-1, 5.50%, 04/01/21

    505       518,488  

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

    750       767,977  

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

    1,000       1,002,680  

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

    300       336,054  

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

   

5.75%, 02/15/21(b)

    615       676,568  

5.75%, 02/15/47

    385       418,926  

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

    20       22,995  

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

    1,000       1,088,590  

State of New York Dormitory Authority, RB, Haverstraw King’s Daughters Public Library, 5.00%, 07/01/26

    1,015       1,102,564  

Town of Oyster Bay New York, GOL, New York Public Improvement, 4.00%, 02/15/24

    1,500       1,591,710  
   

 

 

 
      14,998,443  
Education — 38.0%  

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

    1,000       1,049,730  

Build NYC Resource Corp., Refunding RB, The Packer Collegiate Institute Project, 5.00%, 06/01/35

    250       276,918  

Build NYC Resource Corp., RB, Inwood Academy for Leadership Charter School Project, Series A, 4.88%, 05/01/31(a)

    750       767,190  

Build NYC Resource Corp., Refunding RB:

   

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

    385       434,249  

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

    500       545,890  

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

    500       565,960  
Security   Par
(000)
    Value  
Education (continued)  

Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB:

   

Buffalo State College Foundation Housing, 6.00%, 10/01/31

  $ 1,000     $ 1,105,150  

The Charter School for Applied Technologies Project, Series A, 4.50%, 06/01/27

    1,000       1,075,360  

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

    1,000       1,143,750  

County of Nassau New York, GO, Series A (AGM), 5.00%, 04/01/32

    1,000       1,163,020  

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       1,052,360  

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

    500       546,905  

State of New York Dormitory Authority, RB:

   

Bid Group 3, Series A, 5.00%, 03/15/33

    1,000       1,172,400  

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

    500       503,260  

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

    120       130,414  

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

    500       550,095  

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

    1,000       1,119,380  

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

    1,000       1,035,410  

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

    250       283,777  

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

    1,000       1,013,340  

State of New York Dormitory Authority, Refunding RB:

   

Fordham University, 5.00%, 07/01/29

    375       425,794  

Fordham University, 5.00%, 07/01/30

    300       340,104  

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

    980       1,067,886  

Series B, 5.00%, 07/01/31

    1,500       1,720,305  

Series L, 5.00%, 01/01/32

    1,750       2,038,277  

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

    1,050       1,194,165  

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

    500       541,270  

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

    1,000       1,124,810  
   

 

 

 
      23,987,169  
Health — 16.3%  

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

    500       551,245  

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

    215       228,964  

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

    1,000       1,058,770  

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

    660       746,757  

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

   

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

    910       974,028  

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

    580       616,163  

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

    205       224,301  

Series B, 6.00%, 11/01/30

    35       37,627  

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

   

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

    250       266,115  

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

    875       947,196  

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

    500       542,615  
 

 

 

16    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 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, RB, Series A(b):

   

NYSARC, Inc., 5.30%, 07/01/19

  $ 450     $ 465,332  

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

    1,000       1,061,280  

State of New York Dormitory Authority, Refunding RB:

   

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

    250       260,075  

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

    500       543,670  

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

    1,270       1,426,527  

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

    100       113,582  

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

    200       226,180  
   

 

 

 
      10,290,427  
Housing — 2.0%  

City of New York Housing Development Corp., RB, M/F Housing, Series B1, 5.25%, 07/01/30

    500       554,405  

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

    690       692,001  
   

 

 

 
      1,246,406  
State — 12.5%  

City of New York Transitional Finance Authority, BARB:

   

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

    575       583,987  

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

    1,140       1,272,844  

New York City Transitional Finance Authority Building Aid Revenue, B, Series S-3, 5.00%, 07/15/32

    1,500       1,763,520  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Future Tax Secured, Sub-Series A1, 5.00%, 08/01/33(c)

    300       351,957  

State of New York Dormitory Authority, RB, Municipal Health Facilities Lease, Sub-Series 2-4, 5.00%, 01/15/27

    600       600,954  

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

    1,000       1,023,750  

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

    1,990       2,260,680  
   

 

 

 
      7,857,692  
Tobacco — 2.7%  

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

    500       538,925  

New York Counties Tobacco Trust, Refunding RB, Tobacco Settlement Pass-Through Bonds, Series B:

   

5.00%, 06/01/25

    845       955,889  

5.00%, 06/01/28

    90       101,138  

5.00%, 06/01/29

    105       117,379  
   

 

 

 
      1,713,331  
Transportation — 19.5%  

Metropolitan Transportation Authority, RB:

   

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

    1,000       1,104,000  

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

    500       582,480  

Series B, 5.25%, 11/15/33

    1,000       1,133,420  

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

    860       900,343  

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

    460       507,840  

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

    300       331,200  

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

    225       255,314  

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

    1,000       1,040,140  

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

    1,000       1,107,160  

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

   

Series I, 5.00%, 01/01/37

    660       715,236  

Series K, 5.00%, 01/01/32

    1,035       1,171,051  
Security   Par
(000)
    Value  
Transportation (continued)  

Triborough Bridge & Tunnel Authority, RB:

   

Series B, 5.00%, 11/15/31

  $ 2,005     $ 2,316,697  

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

    500       574,870  

Triborough Bridge & Tunnel Authority, Refunding RB, Series A, 5.00%, 01/01/22(b)

    500       553,790  
   

 

 

 
      12,293,541  
Utilities — 7.9%  

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

    1,000       1,157,060  

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

   

5.50%, 04/01/19(b)

    500       513,690  

5.00%, 09/01/34

    1,000       1,116,270  

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       1,085,270  

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

    1,000       1,138,330  
   

 

 

 
      5,010,620  
   

 

 

 

Total Municipal Bonds — 128.4%
(Cost — $78,200,315)

 

    81,001,987  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(d)

 

New York — 36.2%  
County/City/Special District/School District — 10.5%  

City of New York, GO:

   

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

    991       1,111,095  

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

    750       821,092  

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

    174       179,727  

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

    426       439,722  

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

    3,540       4,070,080  
   

 

 

 
      6,621,716  
State — 12.6%  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Future Tax Secured Subordinate Bonds, SubSeries B-1, 5.00%, 08/01/36

    3,001       3,415,078  

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

    990       1,135,256  

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

    1,500       1,741,973  

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

    1,499       1,668,989  
   

 

 

 
      7,961,296  
Transportation — 10.4%  

Metropolitan Transportation Authority, RB, Sub-Series D-1, 5.00%, 11/15/39

    3,510       3,906,852  

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

    749       785,104  

Port Authority of New York & New Jersey, Refunding ARB:

   

178th Series, AMT, 5.00%, 12/01/32

    991       1,095,608  

Consolidated, Series 169th, 5.00%, 10/15/26

    750       812,122  
   

 

 

 
      6,599,686  
 

 

 

SCHEDULES OF INVESTMENTS      17  


Schedule of Investments  (continued)

July 31, 2018

  

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

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Utilities — 2.7%  

City of 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     $ 1,689,355  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 36.2%
(Cost — $22,223,168)

 

    22,872,053  
   

 

 

 

Total Long-Term Investments — 164.6%
(Cost — $100,423,483)

 

    103,874,040  
   

 

 

 
     Shares         
Short-Term Securities — 1.7%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.85%(e)(f)

    1,061,194       1,061,407  
   

 

 

 

Total Short-Term Securities — 1.7%
(Cost — $1,061,292)

 

    1,061,407  
   

 

 

 

Total Investments — 166.3%
(Cost — $101,484,775)

 

    104,935,447  

Other Assets Less Liabilities — 0.7%

 

    431,481  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (20.3)%

 

    (12,824,978

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (46.7)%

 

    (29,460,648
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 63,081,302  
   

 

 

 

 

(a) 

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

(b) 

U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(c) 

When-issued security.

(d) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(e) 

Annualized 7-day yield as of period end.

 
(f) 

During the year ended July 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
07/31/18
     Value at
07/31/18
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     187,589        873,605        1,061,194      $ 1,061,407      $ 7,878      $ 161      $ 96  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     20          09/19/18        $ 2,388        $ 4,583  

Long U.S. Treasury Bond

     9          09/19/18          1,287          (874

5-Year U.S. Treasury Note

     11          09/28/18          1,244          2,682  
                 

 

 

 
                  $ 6,391  
                 

 

 

 

 

 

18    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2018

  

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

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 7,265      $      $ 7,265  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized depreciation(a)

   $      $      $      $      $ 874      $      $ 874  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 year ended July 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

   $      $      $      $      $ 323,820      $      $ 323,820  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ 9,491      $      $ 9,491  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 5,461,492  

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)

   $        $ 103,874,040        $             —        $ 103,874,040  

Short-Term Securities

     1,061,407                            1,061,407  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,061,407        $ 103,874,040        $        $ 104,935,447  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 7,265        $        $        $ 7,265  

Liabilities:

 

Interest rate contracts

     (874                          (874
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 6,391        $        $        $ 6,391  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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.

 

 

 

SCHEDULES OF INVESTMENTS      19  


Schedule of Investments  (continued)

July 31, 2018

  

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

 

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

   $             —        $ (12,780,377      $             —        $ (12,780,377

VRDP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (42,380,377      $        $ (42,380,377
  

 

 

      

 

 

      

 

 

      

 

 

 

During the year ended July 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

20    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments

July 31, 2018

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 150.7%

 

Arizona — 149.2%  
Corporate — 18.5%  

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

  $ 4,350     $ 4,565,630  

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

    1,000       1,062,980  

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

    1,000       1,045,970  

Salt Verde Financial Corp., RB, Senior:

   

5.50%, 12/01/29

    2,000       2,394,200  

5.00%, 12/01/37

    2,500       2,965,000  
   

 

 

 
      12,033,780  
County/City/Special District/School District — 30.0%  

City of Tempe Arizona, GO, 5.00%, 07/01/38

    840       984,698  

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

    1,000       1,031,270  

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

   

5.50%, 07/01/29

    480       558,245  

5.50%, 07/01/30

    400       465,204  

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

    1,250       1,400,875  

County of Maricopa Arizona Unified School District No. 210 Phoenix, GO, School Improvement Project of 2011 & 2017, 5.00%, 07/01/37

    1,000       1,154,540  

County of Maricopa Arizona Unified School District No. 95 Queen Creek, GO, 5.00%, 07/01/37

    400       455,040  

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       1,031,270  

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

    2,000       2,072,500  

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

    1,155       1,155,000  

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

    3,600       3,851,568  

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

    4,000       4,443,320  

Town of Queen Creek Arizona Excise Tax Revenue, RB, Series A, 5.00%, 08/01/42

    750       864,727  
   

 

 

 
      19,468,257  
Education — 35.8%  

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

    2,595       2,834,467  

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

   

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

    500       519,920  

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

    500       496,170  

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

    2,050       2,332,633  

City of Phoenix Arizona IDA, RB:

   

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

    500       555,885  

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

    500       562,220  

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

    2,000       2,101,120  

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

    440       487,753  

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

    500       513,120  

City of Phoenix Arizona IDA, Refunding RB:

   

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

    1,000       1,022,830  

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

    1,500       1,533,345  
Security   Par
(000)
    Value  
Education (continued)  

Downtown Phoenix Student Housing, LLC - Arizona State University Project, Series A, 5.00%, 07/01/42

  $ 1,750     $ 1,919,033  

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

    500       525,980  

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

    500       511,115  

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

    1,000       1,040,350  

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

    1,000       1,033,620  

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

    3,000       3,282,360  

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

    1,400       1,533,014  

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

    500       527,755  
   

 

 

 
      23,332,690  
Health — 18.5%  

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

    500       527,320  

Arizona Health Facilities Authority, Refunding RB, Series A:

   

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

    1,000       1,050,650  

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

    1,750       1,925,980  

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

    500       535,365  

County of Glendale Arizona IDA, Refunding RB, Terrace of Phoenix Project, 5.00%, 07/01/48

    530       553,219  

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

    170       176,266  

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

   

5.00%, 01/01/38

    1,320       1,490,901  

4.00%, 01/01/41

    3,000       3,092,610  

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

    1,000       1,090,770  

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

    500       522,175  

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

    1,000       1,114,460  
   

 

 

 
      12,079,716  
State — 7.7%  

Arizona School Facilities Board, COP(a):

   

5.13%, 09/01/18

    1,000       1,003,120  

5.75%, 09/01/18

    2,000       2,007,240  

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

    1,930       2,013,588  
   

 

 

 
      5,023,948  
Transportation — 2.8%  

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

   

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

    1,000       1,062,060  

Senior Lien, AMT, 5.00%, 07/01/32

    700       769,888  
   

 

 

 
      1,831,948  
Utilities — 35.9%  

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

    3,500       3,883,320  

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

    3,000       3,469,380  

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

    3,000       3,351,690  

City of Phoenix Civic Improvement Corp., RB:

   

Junior Lien, Series A, 4.00%, 07/01/39

    1,300       1,357,343  

Series B (BHAC), 5.50%, 07/01/41

    100       134,393  
 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (continued)

July 31, 2018

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Utilities (continued)  

City of Phoenix Civic Improvement Corp., Refunding RB, Junior Lien Airport, Series D, 4.00%, 07/01/40

  $ 1,000     $ 1,032,560  

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

    2,000       2,030,440  

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

    2,500       2,740,750  

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

    500       505,760  

Salt River Project Agricultural Improvement & Power District, Refunding RB:

   

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

    2,250       2,630,700  

Series A, 5.00%, 12/01/41

    2,000       2,270,420  
   

 

 

 
      23,406,756  
   

 

 

 

Total Municipal Bonds in Arizona

 

    97,177,095  
   

 

 

 
Puerto Rico — 1.5%            
Tobacco — 1.5%            

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

    1,000       1,008,720  
   

 

 

 

Total Municipal Bonds — 150.7%
(Cost — $94,438,251)

 

    98,185,815  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(c)

 

Arizona — 9.7%            
Utilities — 9.7%            

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

    3,000       3,231,285  

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

    3,000       3,093,630  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 9.7%
(Cost — $6,025,811)

 

    6,324,915  
   

 

 

 

Total Long-Term Investments — 160.4%
(Cost — $100,464,062)

 

    104,510,730  
   

 

 

 
Security       
Shares
    Value  

Short-Term Securities — 0.6%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class,
0.85%(d)(e)

    406,896     $ 406,978  
   

 

 

 

Total Short-Term Securities — 0.6%
(Cost — $406,938)

 

    406,978  
   

 

 

 

Total Investments — 161.0%
(Cost — $100,871,000)

 

    104,917,708  

Other Assets Less Liabilities — 0.6%

 

    390,216  

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

 

    (3,002,929

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (57.0)%

 

    (37,152,046
   

 

 

 

Net Assets — 100.0%

 

  $ 65,152,949  
   

 

 

 

 

(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 year ended July 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
07/31/18
     Value at
07/31/18
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     969,095        (562,199      406,896      $ 406,978      $ 5,203      $ 290      $ (132
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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.

 

 

22    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 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

     14          09/19/18        $ 1,672        $ 1,506  

Long U.S. Treasury Bond

     22          09/19/18          3,133          (11,964

5-Year U.S. Treasury Note

     4          09/28/18          453          42  
                 

 

 

 
                  $ (10,416
                 

 

 

 

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)

   $      $      $      $      $ 1,548      $      $ 1,548  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Liabilities — Derivative Financial Instruments                                                 

Futures contracts

                    

Net unrealized depreciation(a)

   $      $      $      $      $ 11,964      $      $ 11,964  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 year ended July 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

   $      $      $      $      $ 223,159      $      $ 223,159  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (3,042    $      $ (3,042
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 4,430,164  

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

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (continued)

July 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)

   $        $ 104,510,730        $             —        $ 104,510,730  

Short-Term Securities

     406,978                            406,978  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 406,978        $ 104,510,730        $        $ 104,917,708  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Assets:

                 

Interest rate contracts

   $ 1,548        $        $        $ 1,548  

Liabilities:

                 

Interest rate contracts

     (11,964                          (11,964
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ (10,416      $         —        $         —        $ (10,416
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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 year ended July 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

24    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments

July 31, 2018

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 89.0%

 

California — 88.1%  
Corporate — 1.3%  

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

  $ 4,000     $ 4,136,040  
   

 

 

 
County/City/Special District/School District — 19.0%  

Anaheim California Union High School District, GO, Election of 2014, 4.00%, 08/01/42

    5,725       5,953,256  

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

    2,000       2,007,780  

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

    2,660       2,791,909  

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

   

6.50%, 05/01/36

    1,520       1,702,324  

6.50%, 05/01/42

    1,860       2,083,107  

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

    4,000       4,631,720  

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

    5,000       5,773,400  

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

    2,440       2,712,280  

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

    5,500       6,250,695  

Los Angeles California Unified School District, GO, Election of 2008, Series B-1, 5.25%, 07/01/42

    2,500       2,980,900  

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

    5,300       5,545,708  

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

    5,000       6,032,850  

San Francisco Bay Area Rapid Transit District, GO, Election of 2016, Green Bonds, Series A, 4.00%, 08/01/42

    7,875       8,332,537  

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

    1,625       1,891,013  

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

    2,500       2,874,350  
   

 

 

 
      61,563,829  
Education — 13.7%  

California Educational Facilities Authority, Refunding RB:

   

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

    2,500       2,685,850  

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

    855       971,605  

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

    890       1,004,614  

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

    2,750       3,140,555  

California School Finance Authority, RB:

   

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

    1,500       1,665,045  

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

    3,000       3,334,590  

Value Schools, 6.65%, 07/01/33

    595       666,906  

Value Schools, 6.90%, 07/01/43

    1,330       1,455,539  

California State University, Refunding RB, Systemwide, Series A, 4.00%, 11/01/35

    12,250       12,917,257  

State of California University, Refunding RB, Systemwide, Series A, 5.00%, 11/01/43(b)

    3,500       4,103,330  

University of California, Refunding RB:

   

Limited Project, Series K, 4.00%, 05/15/36

    5,000       5,255,950  

Limited Project, Series O, 5.00%, 05/15/40

    3,500       4,067,105  

Series AZ, 5.00%, 05/15/37

    2,500       2,942,075  
   

 

 

 
      44,210,421  
Security   Par
(000)
    Value  
Health — 11.8%  

California Health Facilities Financing Authority, RB:

   

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

  $ 9,700     $ 10,692,504  

Sutter Health, Series B, 6.00%, 08/15/20(a)

    7,530       8,213,347  

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

    10,000       10,425,500  

California Statewide Communities Development Authority, RB, Sutter Health, Series A, 6.00%, 08/15/20(a)

    8,110       8,837,386  
   

 

 

 
      38,168,737  
Housing — 1.1%  

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

    3,500       3,507,805  
   

 

 

 
State — 13.7%  

State of California, GO, Refunding:

   

Various Purpose, 5.00%, 09/01/35

    10,115       11,753,731  

Various Purpose, 5.25%, 10/01/39

    6,150       7,173,299  

Various Purposes, 5.00%, 11/01/37

    4,690       5,496,117  

State of California Public Works Board, LRB:

   

Correctional Facilities Improvements, Series A, 5.00%, 09/01/39

    1,435       1,615,480  

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

    1,610       1,663,468  

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

    10,000       10,348,500  

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

    1,510       1,743,461  

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

    4,400       4,672,976  
   

 

 

 
      44,467,032  
Tobacco — 4.7%  

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

    775       780,603  

Golden State Tobacco Securitization Corp., Refunding RB:

   

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

    750       783,180  

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

    9,840       10,101,108  

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

   

5.00%, 06/01/37

    3,000       3,016,140  

5.13%, 06/01/46

    605       608,255  
   

 

 

 
      15,289,286  
Transportation — 15.4%  

California Municipal Finance Authority, ARB, Senior Lien-Linxs APM Project, AMT, 5.00%, 12/31/43

    3,500       3,920,805  

City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT, 5.25%, 05/01/33

    1,440       1,609,330  

City & County of San Francisco California Airports Commission, Refunding RB, Second Series E:

   

6.00%, 05/01/19(a)

    405       419,130  

6.00%, 05/01/39

    4,810       4,971,953  

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

    5,075       5,301,040  

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

    3,910       4,425,964  

City of Los Angeles California Department of Airports, ARB, Sub-Series A, AMT:

   

5.00%, 05/15/42

    3,500       3,933,405  

Los Angeles International Airport, 5.00%, 05/15/42

    3,520       3,917,549  
 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (continued)

July 31, 2018

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Transportation (continued)  

City of Los Angeles California Department of Airports, RB, Subordinate, Series C, AMT, 5.00%, 05/15/44(b)

  $ 3,215     $ 3,626,359  

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       1,083,380  

5.75%, 03/01/34

    1,000       1,090,140  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT, 6.25%, 03/01/34

    1,400       1,553,748  

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

    8,290       9,412,549  

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

    4,100       4,604,054  
   

 

 

 
      49,869,406  
Utilities — 7.4%  

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

    4,000       4,341,320  

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

    2,645       2,957,269  

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

    5,185       5,988,571  

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

    2,420       2,682,159  

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

    3,000       3,438,000  

Oceanside Public Financing Authority, Refunding RB, Series A:

   

5.25%, 05/01/30

    1,245       1,425,512  

5.25%, 05/01/33

    2,810       3,198,314  
   

 

 

 
      24,031,145  
   

 

 

 

Total Municipal Bonds in California

 

    285,243,701  
   

 

 

 
Puerto Rico — 0.9%  
Tobacco — 0.9%  

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

   

5.50%, 05/15/39

    1,970       1,982,845  

5.63%, 05/15/43

    795       801,932  
   

 

 

 

Total Municipal Bonds in Puerto Rico

 

    2,784,777  
   

 

 

 

Total Municipal Bonds — 89.0%
(Cost — $277,032,959)

 

    288,028,478  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(c)

 

California — 78.1%  
County/City/Special District/School District — 32.3%  

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

   

5.00%, 12/01/39

    17,850       20,187,368  

5.00%, 12/01/44

    14,095       15,879,772  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 08/01/20(a)(d)

    9,682       10,393,914  

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A,
6.00%, 08/01/19(a)

    3,828       4,003,752  

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

    15,140       17,300,705  

San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(a)

    7,732       8,026,562  

San Marcos Unified School District, GO, Election of 2010, Series A, 5.00%, 08/01/21(a)

    15,520       17,056,170  
Security   Par
(000)
    Value  
County/City/Special District/School District (continued)  

Santa Monica Community College District, GO, Election of 2016, Series A, 5.00%, 08/01/43

  $ 10,000     $ 11,828,800  
   

 

 

 
      104,677,043  
Education — 26.2%  

California State University, Refunding RB, Series A:

   

Systemwide, 5.00%, 11/01/41

    9,775       11,216,908  

5.00%, 11/01/43

    5,001       5,670,122  

Systemwide, 5.00%, 11/01/42(d)

    13,430       15,482,440  

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

    11,950       13,693,804  

University of California, Refunding RB:

   

Series AZ, 5.00%, 05/15/43(d)

    12,000       13,958,760  

Series I, 5.00%, 05/15/40

    21,875       24,878,019  
   

 

 

 
      84,900,053  
Health — 13.0%  

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

    11,000       12,414,435  

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

    26,870       29,539,803  
   

 

 

 
      41,954,238  
Transportation — 3.4%  

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

    10,045       11,183,711  
   

 

 

 
Utilities — 3.2%            

City of Los Angeles California Wastewater System Revenue, Refunding RB, Series A, 5.00%, 06/01/19(a)

    9,870       10,170,542  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 78.1%
(Cost — $247,395,729)

 

    252,885,587  
   

 

 

 

Total Long-Term Investments — 167.1%
(Cost — $524,428,688)

 

    540,914,065  
   

 

 

 
     Shares         
Short-Term Securities — 1.7%  

BlackRock Liquidity Funds, MuniCash, Institutional Class,
0.85%(e)(f)

    5,452,423       5,453,513  
   

 

 

 

Total Short-Term Securities — 1.7%
(Cost — $5,453,299)

 

    5,453,513  
   

 

 

 

Total Investments — 168.8%
(Cost — $529,881,987)

 

    546,367,578  

Liabilities in Excess of Other Assets — (0.8)%

 

    (2,422,324

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (35.4)%

 

    (114,501,505

VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (32.6)%

 

    (105,698,702
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 323,745,047  
   

 

 

 

 

(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) 

When-issued security.

(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) 

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 between May 5, 2020 to May 15, 2026, is $18,469,609. See Note 4 of the Notes to Financial Statements for details.

 

 

 

26    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2018

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

(e) 

Annualized 7-day yield as of period end.

(f) 

During the year ended July 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
07/31/18
     Value at
07/31/18
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized

Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     1,010,794        4,441,629        5,452,423      $ 5,453,513      $ 14,584      $ 2      $ 177  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     88          09/19/18        $ 10,509        $ 36,452  

Long U.S. Treasury Bond

     105          09/19/18          15,012          (26,001

5-Year U.S. Treasury Note

     20          09/28/18          2,263          5,296  
                 

 

 

 
                  $ 15,747  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 41,748      $      $ 41,748  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized depreciation(a)

   $      $      $      $      $ 26,001      $      $ 26,001  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 year ended July 31, 2018, the effect of derivative financial instruments in the Statements of Operations were as follows:

 

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

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 1,309,643      $      $ 1,309,643  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ 70,835      $      $ 70,835  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (continued)

July 31, 2018

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 23,493,660  

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)

   $        $ 540,914,065        $             —        $ 540,914,065  

Short-Term Securities

     5,453,513                            5,453,513  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 5,453,513        $ 540,914,065        $        $ 546,367,578  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 41,748        $        $        $ 41,748  

Liabilities:

 

Interest rate contracts

     (26,001                          (26,001
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 15,747        $        $        $ 15,747  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

   $             —        $ (114,107,701      $             —        $ (114,107,701

VRDP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (220,007,701      $        $ (220,007,701
  

 

 

      

 

 

      

 

 

      

 

 

 

During the year ended July 31, 2018, there were no transfers between levels.

See notes to financial statements.

 

 

28    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments

July 31, 2018

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 96.6%

 

Alabama — 0.3%  

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

  $ 545     $ 598,786  
   

 

 

 
Arizona — 1.4%  

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

    1,645       1,715,406  

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

    1,070       1,098,077  
   

 

 

 
      2,813,483  
California — 11.4%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20(b)

    1,645       1,794,284  

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

    710       740,211  

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

    145       160,531  

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

   

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

    1,680       1,767,662  

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

    290       306,518  

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

    1,360       1,439,329  

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

   

5.50%, 05/01/28

    1,065       1,216,368  

5.25%, 05/01/33

    830       927,600  

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       1,622,700  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.25%, 06/01/47

    655       680,945  

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

    1,620       1,890,508  

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

   

5.25%, 05/15/23(b)

    2,905       3,372,676  

5.25%, 05/15/38

    825       929,090  

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

    2,535       2,709,585  

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

    1,000       1,155,680  

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

    835       950,313  

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

    625       725,425  
   

 

 

 
      22,389,425  
Colorado — 1.3%  

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

    345       351,113  

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

   

5.50%, 11/15/28

    1,000       1,145,520  

5.50%, 11/15/30

    330       376,966  

5.50%, 11/15/31

    400       456,292  

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

    290       316,616  
   

 

 

 
      2,646,507  
Security   Par
(000)
    Value  
Connecticut — 0.2%  

Connecticut Housing Finance Authority, Refunding RB, S/F Housing, Sub-Series B-1, 4.00%, 05/15/45

  $ 315     $ 318,245  
   

 

 

 
Delaware — 0.3%  

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

    500       531,150  
   

 

 

 
Florida — 7.9%  

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

    675       764,026  

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

    1,600       1,623,472  

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

    1,005       1,107,771  

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

    1,995       2,249,163  

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

    2,000       2,162,820  

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

    140       140,881  

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

    130       131,863  

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

   

Series A, 5.38%, 10/01/33

    1,170       1,309,090  

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

    525       606,853  

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

    700       797,580  

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

    2,440       2,656,525  

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

   

5.25%, 05/01/37

    240       254,126  

5.38%, 05/01/47

    260       274,932  

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

    1,200       1,363,284  
   

 

 

 
      15,442,386  
Georgia — 0.3%  

County of Georgia Housing & Finance Authority, RB, S/F, Series A, 4.00%, 12/01/48

    290       290,200  

Griffin-Spalding County Hospital Authority, RB, Revenue Anticipation Certificates, 4.00%, 04/01/42

    370       373,227  
   

 

 

 
      663,427  
Hawaii — 0.6%  

State of Hawaii Airports System Revenue, COP, AMT:

   

5.25%, 08/01/25

    485       542,211  

5.25%, 08/01/26

    525       584,078  
   

 

 

 
      1,126,289  
Illinois — 16.8%  

Chicago Board of Education, GO, Refunding Dedicated Revenues:

   

Series H, 5.00%, 12/01/36

    295       304,531  

Project, Series C, 5.25%, 12/01/35

    970       1,009,624  

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

    530       557,852  

Chicago Board of Education, GO, Dedicated Revenues:

   

Series F, 5.00%, 12/01/22

    400       418,656  

Series G, 5.00%, 12/01/34

    290       300,707  

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

    1,000       1,080,540  

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

    6,065       6,732,211  
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (continued)

July 31, 2018

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

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

   

5.25%, 12/01/36

  $ 1,000     $ 1,067,820  

5.25%, 12/01/40

    1,000       1,066,510  

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

   

5.50%, 12/01/38

    1,000       1,055,590  

5.25%, 12/01/43

    1,500       1,560,630  

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

    4,000       4,403,120  

Illinois Finance Authority, Refunding RB(b):

   

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

    1,200       1,255,224  

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

    4,160       4,351,734  

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

   

0.00%, 12/15/56(c)

    2,965       444,098  

5.00%, 06/15/57

    810       862,310  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project Bonds, Series B, 0.00%, 12/15/54(c)

    4,140       689,848  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    1,370       1,508,041  

6.00%, 06/01/21

    390       434,651  

State of Illinois, GO:

   

5.25%, 02/01/32

    2,200       2,325,620  

5.50%, 07/01/33

    1,000       1,060,330  

5.50%, 07/01/38

    415       436,833  
   

 

 

 
      32,926,480  
Indiana — 4.5%  

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

    1,350       1,573,317  

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

   

6.63%, 01/15/34

    170       182,903  

6.75%, 01/15/43

    355       381,440  

6.88%, 01/15/52

    515       554,408  

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

    700       715,925  

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

    4,525       4,611,835  

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

    720       751,723  
   

 

 

 
      8,771,551  
Iowa — 1.2%  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

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

    1,255       1,333,513  

Midwestern Disaster Area, 5.50%, 12/01/22

    5       5,041  

Midwestern Disaster Area, 5.25%, 12/01/25

    865       923,673  
   

 

 

 
      2,262,227  
Kansas — 2.5%  

City of Lenexa, Refunding RB, Series A, 5.00%, 05/15/39

    660       709,097  

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

    655       693,619  

Kansas Development Finance Authority, Refunding RB, Adventist Health System:

   

5.50%, 11/15/19(b)

    75       78,530  

5.50%, 11/15/29

    3,200       3,372,064  
   

 

 

 
      4,853,310  
Security   Par
(000)
    Value  
Louisiana — 2.3%  

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

  $ 1,500     $ 1,687,665  

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

    1,420       1,549,830  

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

    1,195       1,237,363  
   

 

 

 
      4,474,858  
Maine — 0.4%  

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

    765       848,140  
   

 

 

 
Maryland — 0.4%  

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

    185       191,838  

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

    585       595,237  

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

    20       22,618  
   

 

 

 
      809,693  
Massachusetts — 1.8%  

Massachusetts HFA, Refunding RB, AMT:

   

Series B, 5.50%, 06/01/41

    975       998,020  

Series C, 5.35%, 12/01/42

    795       804,771  

Series F, 5.70%, 06/01/40

    1,625       1,638,016  
   

 

 

 
      3,440,807  
Michigan — 3.4%  

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

    1,805       1,975,410  

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

    2,460       2,463,813  

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

   

6.00%, 10/15/18(b)

    760       767,266  

6.00%, 10/15/18(b)

    450       454,302  

6.00%, 10/15/38

    40       40,364  

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

    885       883,425  
   

 

 

 
      6,584,580  
Montana — 0.1%  

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

    170       178,653  
   

 

 

 
Nevada — 3.3%  

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

    2,850       2,935,301  

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

    3,375       3,569,501  
   

 

 

 
      6,504,802  
New Hampshire — 0.5%  

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

    1,000       1,003,520  
   

 

 

 
New Jersey — 5.6%  

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

    900       994,041  

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

    2,250       2,335,703  

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

   

Series A, 5.88%, 12/15/38

    2,670       2,703,989  

Series AA, 5.50%, 06/15/39

    2,475       2,656,913  
 

 

 

30    2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2018

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Jersey (continued)  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/46

  $ 935     $ 1,027,079  

Series A, 5.25%, 06/01/46

    240       268,730  

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

    895       958,831  
   

 

 

 
      10,945,286  
New Mexico — 0.7%  

New Mexico Mortgage Finance Authority, RB, S/F, Mortgage Program Class I, Series B (Ginnie Mae, Fannie Mae & Freddie Mac), 3.90%, 07/01/48

    1,330       1,316,048  
   

 

 

 
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       1,141,811  

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       1,738,704  

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

    475       514,297  
   

 

 

 
      3,394,812  
Ohio — 2.4%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 5.75%, 06/01/34

    310       310,775  

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

    3,115       3,312,242  

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

    1,000       1,118,140  
   

 

 

 
      4,741,157  
Oklahoma — 0.7%  

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

    450       497,394  

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

    760       853,928  
   

 

 

 
      1,351,322  
Pennsylvania — 4.1%  

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

    585       630,021  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment, 5.00%, 06/01/33

    130       145,981  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49

    560       559,983  

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

    1,075       1,105,315  

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

    1,000       1,054,420  

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

   

5.63%, 12/01/20

    1,470       1,599,845  

5.63%, 12/01/20

    545       593,140  

State Public School Building Authority, Refunding RB, The School District of Philadelphia Project, Series A, 5.00%, 06/01/34

    625       694,119  

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

    1,500       1,659,900  
   

 

 

 
      8,042,724  
Security   Par
(000)
    Value  
Puerto Rico — 1.2%  

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

   

5.50%, 05/15/39

  $ 1,200     $ 1,207,824  

5.63%, 05/15/43

    1,145       1,154,984  
   

 

 

 
      2,362,808  
Rhode Island — 2.3%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    525       565,178  

Series B, 4.50%, 06/01/45

    3,950       4,021,890  
   

 

 

 
      4,587,068  
South Carolina — 4.5%  

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

    2,505       2,866,897  

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

   

6.00%, 07/01/38

    1,955       2,218,182  

5.50%, 07/01/41

    1,000       1,110,510  

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

    1,280       1,422,272  

State of South Carolina Public Service Authority, RB, Series E, 5.50%, 12/01/53

    1,020       1,103,926  
   

 

 

 
      8,721,787  
Texas — 7.4%  

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

   

5.75%, 01/01/21

    1,000       1,089,900  

6.00%, 01/01/21

    2,600       2,849,002  

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

    3,515       3,816,200  

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

   

Series A, 5.00%, 11/01/38

    1,365       1,445,221  

Series H, 5.00%, 11/01/37

    1,535       1,646,963  

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

    1,000       1,018,170  

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

    710       791,707  

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       1,804,839  
   

 

 

 
      14,462,002  
Virginia — 3.6%  

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

    560       608,401  

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

   

5.50%, 05/15/19

    610       628,837  

5.50%, 05/15/19

    1,135       1,170,503  

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

    800       813,760  

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

    1,395       1,394,958  

Virginia Small Business Financing Authority, RB, AMT:

   

Covanta Project, 5.00%, 01/01/48(a)(d)

    585       594,137  

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

    1,715       1,896,927  
   

 

 

 
      7,107,523  
West Virginia — 0.9%  

West Virginia Hospital Finance Authority, RB, Improvement West Virginia University Health System Obligated, Series A, 4.00%, 06/01/51

    1,750       1,738,520  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (continued)

July 31, 2018

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Wisconsin — 0.6%  

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

  $ 1,015     $ 1,098,890  
   

 

 

 

Total Municipal Bonds — 96.6%
(Cost — $177,799,640)

      189,058,266  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(e)

 

Arizona — 0.6%  

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

    1,065       1,098,143  
   

 

 

 
California — 22.5%  

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

   

Toll Bridge, 4.00%, 04/01/42(f)

    1,998       2,094,088  

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

    2,681       2,757,888  

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

    4,198       4,225,798  

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

    6,000       6,410,460  

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

    790       813,846  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 08/01/20(b)(f)

    5,251       5,637,195  

Los Angeles Community College District California, GO, Refunding, Go, Refunding, Election of 2008, Series A, 6.00%, 08/01/19(b)

    7,697       8,049,318  

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

    1,980       2,248,821  

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

    8,412       8,754,012  

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

    3,001       3,104,187  
   

 

 

 
      44,095,613  
Colorado — 1.1%  

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

    2,149       2,204,986  
   

 

 

 
District of Columbia — 3.3%  

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

    2,804       2,941,479  

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

    3,507       3,531,178  
   

 

 

 
      6,472,657  
Florida — 2.9%  

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

    3,869       3,889,083  

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

    1,575       1,768,263  
   

 

 

 
      5,657,346  
Illinois — 0.5%  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 4.00%, 02/15/41

    914       938,710  
   

 

 

 
Nevada — 7.9%  

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

    2,740       3,125,984  

County of Clark Nevada Water Reclamation District, GO, Series B, 5.50%, 07/01/19(b)

    5,668       5,873,691  

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

    6,070       6,558,241  
   

 

 

 
      15,557,916  
Security   Par
(000)
    Value  
New Hampshire — 1.1%  

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

  $ 2,159     $ 2,225,566  
   

 

 

 
New Jersey — 3.6%  

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

    1,969       1,994,075  

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

   

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

    4,000       4,008,600  

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

    1,000       1,042,856  
   

 

 

 
      7,045,531  
New York — 16.6%  

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

   

Series FF, 5.00%, 06/15/45

    3,859       4,200,353  

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

    2,505       2,586,671  

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series BB, 5.25%, 06/15/44

    4,408       4,846,428  

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

    2,499       2,539,762  

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

    1,290       1,410,650  

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

    2,996       3,379,663  

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

    4,365       4,778,811  

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

    2,560       2,844,274  

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

    5,700       5,834,634  
   

 

 

 
      32,421,246  
Pennsylvania — 1.8%  

Commonwealth of Pennsylvania, GO, Series First, 4.00%, 03/01/36(f)

    1,769       1,822,929  

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

    1,514       1,729,228  
   

 

 

 
      3,552,157  
South Carolina — 1.7%  

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

   

5.50%, 01/01/19

    258       262,567  

5.50%, 01/01/19

    2,986       3,036,008  
   

 

 

 
      3,298,575  
Texas — 6.9%  

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

    3,989       4,062,336  

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

    5,400       5,633,847  

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

    3,480       3,844,025  
   

 

 

 
      13,540,208<