BlackRock MuniYield PA posts 9.33% annual NAV return
MPA's one-year NAV return was 9.33%, and its current monthly distribution was $0.047700 per common share as of July 31, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
N-CSR
Rhea-AI Filing Summary
BlackRock MuniYield Pennsylvania Quality Fund (MPA) reported results for the year ended July 31, 2026. It seeks current income exempt from federal and Pennsylvania income taxes. At least 80% of net assets (including preferred-share proceeds) plus investment-borrowing proceeds is invested in Pennsylvania municipal obligations; under normal market conditions, at least 80% of net assets plus investment borrowings is invested in investment-grade securities. It may invest up to 20% of managed assets in below-investment-grade securities or securities the adviser considers comparable at purchase. The monthly distribution was $0.047700 per common share ($0.572400 annualized); leverage was 37% of total managed assets.
One-year average annual total returns were 9.33% at NAV and 8.27% at market price; the Pennsylvania Customized Reference Benchmark returned 5.66% and the Bloomberg Municipal Bond Index 5.27%. Healthcare, education, transportation, local tax-backed, housing and utility holdings made the largest contributions, while transportation was the primary detractor; Brightline West bond weakness was identified as the primary cause. Cash had no material performance impact.
On June 6, 2025, MPA’s trustees and MQY’s directors approved reorganizing MPA into MQY, but required shareholder approvals were not received and the reorganization did not occur.
Filing Explained
For the year ended July 31, 2026, MPA’s widening discount to NAV explains why market-price returns lagged NAV returns.
The report says MPA obtains leverage through preferred shares and/or tender-option bond trusts; common shareholders bear the leverage costs, and leverage can magnify changes in NAV, market price and distributions.
Key Figures
Average annual total return at NAV: 9.33%
Average annual total return at market price: 8.27%
Pennsylvania Customized Reference Benchmark return: 5.66%
+5 more
8 metrics
Average annual total return at NAV
9.33%
One-year period ended July 31, 2026
Average annual total return at market price
8.27%
One-year period ended July 31, 2026
Pennsylvania Customized Reference Benchmark return
5.66%
One-year period ended July 31, 2026
Current monthly distribution
$0.047700 per common share
As of July 31, 2026
Current annualized distribution
$0.572400 per common share
As of July 31, 2026
Leverage
37%
VRDP Shares and tender option bond trusts as a percentage of total managed assets as of July 31, 2026
Closing market price
$10.90 per share
As of July 31, 2026
Net asset value
$12.04 per share
As of July 31, 2026
Key Terms
Tax Equivalent Yield, Net Asset Value, tender option bond trusts, Duration
4 terms
Tax Equivalent Yield financial
"Tax Equivalent Yield (b) | 9.35%"
Net Asset Value financial
"Market Price and Net Asset Value Per Share Summary"
Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.
tender option bond trusts financial
"leveraged its assets through the use of tender option bond trusts"
Duration financial
"Duration is a measure of interest rate sensitivity."
Duration is a measure of how sensitive a bond or a bond portfolio’s price is to changes in interest rates, expressed roughly in years. Think of it as the weighted average time it takes to get your cash back from the bond: the longer the duration, the more the bond’s price will swing when rates move, so investors use it like a lever to estimate interest‑rate risk and to balance portfolios accordingly.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was MPA's return for the year ended July 31, 2026?
MPA's average annual total return was 9.33% at NAV and 8.27% at market price for the one-year period ended July 31, 2026. The Pennsylvania Customized Reference Benchmark returned 5.66%, while the Bloomberg Municipal Bond Index returned 5.27%.
Did MPA's proposed reorganization into MQY happen?
No. On June 6, 2025, MPA's board of trustees and MQY's board of directors approved the reorganization, but the required shareholder approvals were not received and it did not occur.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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: 811-07136
Name of Fund: BlackRock MuniYield Pennsylvania Quality Fund (MPA)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock
MuniYield Pennsylvania Quality Fund, 50 Hudson Yards, New York, NY 10001
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2026
Date of reporting period: 07/31/2026
Item 1 – Reports to Stockholders
(a) The Reports to Shareholders are attached herewith.
July 31, 2026
| 2026 Annual Report |
| BlackRock MuniHoldings California Quality Fund, Inc. (MUC) |
| BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ) |
| BlackRock MuniYield Michigan Quality Fund, Inc. (MIY) |
| BlackRock MuniYield New York Quality Fund, Inc. (MYN) |
| BlackRock MuniYield Pennsylvania Quality Fund (MPA) |
| BlackRock Virginia Municipal Bond Trust (BHV) |
| Not FDIC Insured • May Lose Value • No Bank Guarantee |
Table
of Contents
Page
| Annual Report: |
|
| Municipal Market Overview |
3 |
| The Benefits and Risks of Leveraging |
4
|
| Derivative Financial Instruments |
4 |
| Fund Summary |
5
|
| Financial Statements: |
|
| Schedules of Investments
|
23
|
| Statements of Assets and Liabilities |
53 |
| Statements of Operations
|
55
|
| Statements of Changes in Net Assets |
57 |
| Statements of Cash Flows
|
60
|
| Financial Highlights |
62 |
| Notes to Financial Statements |
70
|
| Report of Independent Registered Public Accounting Firm |
84 |
| Important Tax Information |
85
|
| Disclosure of Investment Advisory Agreements |
86 |
| Investment Objectives, Policies and Risks |
90
|
| Automatic Dividend Reinvestment Plan |
103 |
| Director and Officer Information |
104 |
| Additional Information |
107 |
| Glossary of Terms Used in this Report |
110 |
2
Municipal Market Overview For the Reporting Period Ended July 31, 2026
Municipal Market Conditions
The second half of 2025 was framed by a softening labor market,
the longest government shutdown in history, and limited economic data for markets and the Federal Reserve to assess. An increasingly dovish Fed cut rates at
three consecutive meetings, lowering the Federal Funds rate from 4.50% to 3.75% and creating a constructive backdrop for fixed income. Municipals entered 2026
with strong momentum as resilient demand offset tariff-related volatility and geopolitical uncertainty. Conditions shifted in late March as an oil-driven
inflation shock tied to escalating tensions with Iran triggered a sharp repricing of monetary policy expectations, pressuring returns. Municipals rebounded in the second quarter as attractive valuations and seasonal reinvestment demand absorbed record issuance, generating strong performance despite a more hawkish Federal Reserve. The period ended with a rate-driven selloff in July as markets repriced monetary policy expectations, creating more attractive relative value opportunities across
the curve. The long end of the curve, triple-B rated credits, and the hospital, housing, and transportation sectors outperformed during the period.
| Bloomberg Municipal Bond Index(a)
| ||
| Total Returns as of July 31, 2026 | ||
| 6 |
months: |
(0.51)% |
| 12 |
months: |
5.27% |
During the 12-months ended July 31, 2026, municipal bond funds experienced net inflows totaling $108 billion (based on data from the Investment Company Institute), with demand concentrated primarily in investment-grade and long-term funds split between open-end funds and ETFs. At the same time, the market absorbed $571 billion in issuance, a 4% increase year-over-year (period ending July 2025). Issuance was driven by an increased need for
infrastructure spending, declining COVID stimulus cash available to municipalities, and increasing construction costs
and project expenses.
infrastructure spending, declining COVID stimulus cash available to municipalities, and increasing construction costs
and project expenses.
A Closer Look at Yields
AAA Municipal Yield Curves
Source: Refinitiv Municipal Market Data.
From July 31, 2025 to July 31, 2026,
yields on AAA-rated 30-year municipal bonds decreased by 16 basis points (bps) from 4.67% to 4.51%, ten-year yields increased by 5 bps from 3.32% to 3.37%, five-year yields increased by 38 bps
from 2.53% to 2.91%, and two-year yields increased by 24 bps from 2.39% to 2.63% (as measured by Refinitiv Municipal Market Data). As a result, the
municipal yield curve flattened over the 12-month period with the spread between two- and 30-year maturities narrowing 40 bps to a slope of 188 bps, while the Treasury
curve steepened 4 bps.
Municipal curves remain steeper than taxable curves, offering investors who are looking for duration an attractive entry point.
Financial Conditions of Municipal Issuers
Municipal credit fundamentals remain broadly sound, though fiscal
conditions are gradually normalizing following several years of exceptional post-pandemic strength. State revenues remain healthy overall, with total state tax
collections rising 7.7% year-over-year in 4Q25, but broader trends are becoming less favorable, as 40 states entered FY2026 below their inflation-adjusted
long-term revenue growth trend and median rainy day fund capacity declined to 47.8 days of operating expenditures, the first annual decline since the Great
Recession. At the local level, fiscal pressures are becoming more pronounced, particularly among K–12 school districts, where the expiration of federal
pandemic aid, rising operating costs, and slower growth in state funding have contributed to widening credit dispersion and an increase in downgrades and
negative outlooks. Policy developments also warrant attention, as several states are considering property tax reforms that could pressure local government
finances. While municipal balance sheets remain strong, credit performance is becoming increasingly issuer-specific, reinforcing the importance of disciplined
fiscal management, strong governance, and rigorous fundamental credit analysis.
The opinions expressed are those of BlackRock as of July 31, 2026
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.
(a)
The Bloomberg Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt
from U.S. federal income taxes or subject to the AMT. Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. It
is not possible to invest directly in an index.
Municipal Market Overview 3
The Benefits and Risks
of Leveraging
The Funds may utilize leverage to seek
to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, there is no guarantee that
these objectives can be achieved in all interest rate environments.
In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the
income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of each Fund
(including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage (after paying the leverage costs) is paid to shareholders in the form of dividends, and the value of these portfolio
holdings (less the leverage liability) is reflected in the per share NAV.
To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield
curve has a strongly positive slope. In this case, a Fund’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Fund’s financing cost of leverage is significantly lower than the income earned on a Fund’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares
(“Common Shareholders”) are the beneficiaries of the incremental net income.
However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If
interest and other costs of leverage exceed a Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if a Fund had not used leverage. In such circumstance, the investment adviser may nevertheless determine to maintain a
Fund’s leverage if it deems such action to be appropriate. Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of
portfolio investments. In contrast, the amount of each Fund’s obligations under its respective leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and
there is no assurance that a Fund’s intended leveraging strategy will be successful.
The use of leverage also generally causes greater changes in each Fund’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining
market, leverage is likely to cause a greater decline in the NAV and market price of a Fund’s Common Shares than if the Fund were not leveraged. In
addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements
applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Fund to incur losses. The use of leverage may limit
a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the
use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of each
Fund’s investment advisory fees includes assets purchased with the proceeds of leverage, the
investment advisory fees payable to the Funds’ investment adviser will be higher than if the Funds did not use leverage.
To obtain leverage, each Fund has issued Variable Rate Demand
Preferred Shares (“VRDP Shares” or “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB
Trusts”) as described in the Notes to Financial Statements.
Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Fund is permitted to borrow money (including through the use of TOB Trusts) or issue
debt securities up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Fund may
voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Fund may also be subject to certain asset
coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred
Shares, which may be more stringent than those imposed by the 1940 Act.
Derivative Financial Instruments
The Funds may invest in various derivative financial instruments.
These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of
securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or
other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the
value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument.
Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Funds must either use derivative financial instruments with embedded leverage in a limited
manner or comply with an outer limit on fund leverage risk based on value-at-risk. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used,
may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’
investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.
4
2026 BlackRock
Annual Report to Shareholders
Fund
Summary as of July 31, 2026
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
Investment Objective
BlackRock MuniHoldings California Quality Fund,
Inc.’s (MUC) (the “Fund”) investment objective is to provide shareholders with current income exempt from
federal and California income taxes. The Fund seeks to achieve its investment objective by investing primarily in municipal obligations exempt from 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 at least 80% of its assets in investment grade municipal obligations with remaining maturities of one year or more 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.
On June 6, 2025, the Fund’s Board of Directors and the Board of Trustees of BlackRock California Municipal Income Trust (BFZ) each
approved the reorganization of BFZ into MUC, with MUC continuing as the surviving Fund. Subsequently, the preferred shareholders of MUC and the common and
preferred shareholders of BFZ approved the reorganization, which was effective on February 9, 2026.
Fund Information
| Symbol on New York Stock Exchange |
MUC |
| Initial Offering Date |
February 27, 1998 |
| Yield on Closing Market Price as of July 31, 2026 ($10.58)(a) |
6.07% |
| Tax Equivalent Yield(b) |
13.22% |
| Current Monthly Distribution per Common Share(c) |
$0.053500 |
| Current Annualized Distribution per Common
Share(c) |
$0.642000 |
| Leverage as of July 31, 2026(d) |
41% |
| (a) |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication
of future results. |
| (b) |
Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 54.1%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on
income, exemptions and deductions. Lower taxes will result in lower tax equivalent
yields. |
| (c) |
The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain. |
| (d) |
Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares
and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect
derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| |
07/31/26 |
07/31/25 |
Change |
High |
Low |
| Closing Market Price |
$ 10.58
|
$ 10.06
|
5.17 % |
$ 11.04
|
$ 10.06
|
| Net Asset Value |
11.49 |
11.17 |
2.86 |
11.93 |
11.15 |
GROWTH OF $10,000 INVESTMENT
(a)
Represents the Fund’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.
(b)
A benchmark that is designed to track the USD-denominated long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.
Fund Summary 5
Fund
Summary as of July 31,
2026(continued)
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
Performance
Returns for the period ended July 31, 2026 were as
follows:
| |
Average Annual Total Returns | ||
| |
1 Year |
5 Years |
10 Years |
| Fund at NAV(a)(b) |
9.17 % |
(1.67 )% |
1.20 % |
| Fund at Market Price(a)(b) |
11.62 |
(3.18 ) |
0.51 |
| California Customized Reference Benchmark(c) |
5.09 |
0.39 |
N/A |
| Bloomberg Municipal Bond Index |
5.27 |
0.51 |
1.95 |
| (a) |
All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices and reflect the Fund’s use of leverage, if any. The performance
tables and graph do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the sale of Fund shares. |
| (b) |
The Fund’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.
|
| (c) |
The California Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond: California Exempt Total Return Index Unhedged (90%) and the California
Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index
(10%). The California Customized Reference Benchmark commenced on September 30, 2016. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results.
Past performance is not an indication of future results.
The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future
performance.
More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Fund’s absolute
performance based on NAV:
The Fund’s
total return reflects contributions from income and positive price action, both of which were augmented by the use of leverage. At the sector level, the largest contributions
came from transportation, school districts, and tax-backed issues.
At a time of robust returns for the Fund and the broader market, all segments of the portfolio contributed positively. However, a few specific holdings detracted. A
position in the bonds of Brightline West, which were issued to finance a high-speed rail project, was a notable detractor at the individual security level.
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.
These views are not intended to be a forecast of future events and are no guarantee of future results.
6
2026 BlackRock
Annual Report to Shareholders
Fund
Summary as of July 31,
2026(continued)
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
Overview of the Fund’s Total Investments
| SECTOR ALLOCATION | |
| Sector(a)
|
Percent of Total Investments(b) |
| County/City/Special District/School District |
25.3 % |
| Transportation |
22.0 |
| Corporate |
13.0 |
| Education |
10.3 |
| Utilities |
9.6 |
| State |
9.2 |
| Health |
4.2 |
| Housing |
3.6 |
| Tobacco |
2.6 |
| Construction & Engineering |
0.2 |
| CALL/MATURITY SCHEDULE | |
| Calendar Year Ended December 31,(c) |
Percent of Total Investments(b) |
| 2026 |
3.2 % |
| 2027 |
3.0 |
| 2028 |
9.4 |
| 2029 |
5.7 |
| 2030 |
6.7 |
| CREDIT QUALITY ALLOCATION | |
| Credit
Rating(d) |
Percent of Total Investments(b) |
| AAA/Aaa |
5.1 % |
| AA/Aa |
70.9 |
| A |
13.3 |
| BBB/Baa |
2.8 |
| BB/Ba |
— (e) |
| CCC/Caa |
0.1 |
| N/R |
7.8 |
| (a) |
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes. |
| (b) |
Excludes short-term securities. |
| (c) |
Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (d) |
For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service,
Inc. if ratings differ. These rating agencies are independent, nationally
recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low
credit quality. Credit quality ratings are subject to change. |
| (e) |
Rounds to less than 0.1%. |
Fund Summary 7
Fund
Summary as of July 31, 2026
BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
Investment Objective
BlackRock MuniHoldings New Jersey Quality Fund,
Inc.’s (MUJ) (the “Fund”) investment objective is to provide shareholders with current income exempt from
U.S. federal income tax and New Jersey personal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term,
investment grade municipal obligations exempt from U.S federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum
tax) and New Jersey personal income taxes. The municipal obligations in which the Fund primarily invests are either rated 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 remaining maturities of one year or more at the time of investment. The Fund may invest up to 20% of its
managed assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of
purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
Fund Information
| Symbol on New York Stock Exchange |
MUJ |
| Initial Offering Date |
March 11, 1998 |
| Yield on Closing Market Price as of July 31, 2026 ($11.97)(a) |
5.41% |
| Tax Equivalent Yield(b) |
11.17% |
| Current Monthly Distribution per Common Share(c) |
$0.054000 |
| Current Annualized Distribution per Common
Share(c) |
$0.648000 |
| Leverage as of July 31, 2026(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 is not an indication
of future results. |
| (b) |
Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 51.55%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on
income, exemptions and deductions. Lower taxes will result in lower tax equivalent
yields. |
| (c) |
The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain. |
| (d) |
Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares
and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect
derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| |
07/31/26 |
07/31/25 |
Change |
High |
Low |
| Closing Market Price |
$ 11.97
|
$ 10.82
|
10.63 % |
$ 12.65
|
$ 10.82
|
| Net Asset Value |
12.29 |
11.94 |
2.93 |
12.86 |
11.90 |
GROWTH OF $10,000 INVESTMENT
(a)
Represents the Fund’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.
(b)
A benchmark that is designed to track the USD-denominated long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.
8
2026 BlackRock Annual Report to Shareholders
Fund
Summary as of July 31,
2026(continued)
BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
Performance
Returns for the period ended July 31, 2026 were as
follows:
| |
Average Annual Total Returns | ||
| |
1 Year |
5 Years |
10 Years |
| Fund at NAV(a)(b) |
8.65 % |
(0.48 )% |
2.15 % |
| Fund at Market Price(a)(b) |
16.77 |
(0.18 ) |
2.15 |
| New Jersey Customized Reference Benchmark(c) |
5.35 |
0.91 |
N/A |
| Bloomberg Municipal Bond Index |
5.27 |
0.51 |
1.95 |
| (a) |
All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices and reflect the Fund’s use of leverage, if any. The performance
tables and graph do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the sale of Fund shares. |
| (b) |
The Fund’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.
|
| (c) |
The New Jersey Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond: New Jersey Exempt Total Return Index Unhedged (90%) and the New Jersey
Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index
(10%). The New Jersey Customized Reference Benchmark commenced on September 30, 2016. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results.
Past performance is not an indication of future results.
The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future
performance.
More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Fund’s absolute
performance based on NAV:
At the sector
level, positions in tax-backed state, transportation, education, tax-backed local, and health care bonds made the largest contributions to absolute performance.
The Fund also benefited from its significant weightings in A rated and AA rated securities. Holdings in longer-maturity bonds, particularly those with
maturities of 20 years and above, made strong contributions, as did securities with coupons between 3.5% to 5.25%.
Transportation holdings were the largest detractor at the sector
level. Weaknesses in the bonds of Brightline West, which were issued to finance a high-speed rail project, were the primary cause of the shortfall.
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.
These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund Summary 9
Fund
Summary as of July 31,
2026(continued)
BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
Overview of the Fund’s Total Investments
| SECTOR ALLOCATION | |
| Sector(a)
|
Percent of Total Investments(b) |
| State |
30.2 % |
| Transportation |
18.8 |
| Education |
14.3 |
| County/City/Special District/School District |
12.9 |
| Health |
8.0 |
| Housing |
5.5 |
| Corporate |
5.1 |
| Tobacco |
2.9 |
| Utilities |
2.3 |
| Construction & Engineering |
—
(c) |
| CALL/MATURITY SCHEDULE | |
| Calendar Year Ended December 31,(d)(e) |
Percent of Total Investments(b) |
| 2026 |
20.0 % |
| 2027 |
10.0 |
| 2028 |
17.4 |
| 2029 |
5.8 |
| 2030 |
6.5 |
| CREDIT QUALITY ALLOCATION | |
| Credit
Rating(d)(e) |
Percent of Total Investments(b) |
| AAA/Aaa |
5.3 % |
| AA/Aa |
45.6 |
| A |
33.3 |
| BBB/Baa |
6.3 |
| BB/Ba |
2.7 |
| N/R |
6.8 |
| (a) |
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes. |
| (b) |
Excludes short-term securities. |
| (c) |
Rounds to less than 0.1%. |
| (d) |
Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (e) |
For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service,
Inc. if ratings differ. These rating agencies are independent, nationally
recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low
credit quality. Credit quality ratings are subject to change. |
10
2026 BlackRock
Annual Report to Shareholders
Fund
Summary as of July 31, 2026
BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)
Investment Objective
BlackRock MuniYield Michigan Quality Fund,
Inc.’s (MIY) (the “Fund”) investment objective is to provide shareholders with as high a level of current income
exempt from federal and Michigan 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 an aggregate of the Fund’s net assets (including proceeds from the issuance of any preferred stock) and
the proceeds of any borrowings for investment purposes, in a portfolio of municipal obligations issued by or on behalf of the State of Michigan, its political
subdivisions, agencies and instrumentalities and by other qualifying issuers, each of which pays interest that, in the opinion of bond counsel to the issuer,
is excludable from gross income for federal income tax purposes (except that the interest may be includable in taxable income for purposes of the federal
alternative minimum tax) and exempt from Michigan income taxes. Under normal market conditions, the Fund will invest at least 80% of its net assets, plus the
amount of any borrowings for investment purposes, in “investment grade” securities. The Fund may invest up to 20% of its managed assets in
securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may
invest directly in securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
On June 6, 2025, the Fund’s Board of Directors and the Board of Directors of BlackRock MuniYield Quality Fund III, Inc. (MYI) each approved the reorganization of MIY into MYI, with MYI continuing as the surviving Fund. The requisite shareholder approvals were not received for MIY and the reorganization of MIY did not occur.
Fund Information
| Symbol on New York Stock Exchange |
MIY |
| Initial Offering Date |
October 30, 1992 |
| Yield on Closing Market Price as of July 31, 2026 ($12.20)(a) |
5.36% |
| Tax Equivalent Yield(b) |
9.75% |
| Current Monthly Distribution per Common Share(c) |
$0.054500 |
| Current Annualized Distribution per Common
Share(c) |
$0.654000 |
| Leverage as of July 31, 2026(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 is not an indication
of future results. |
| (b) |
Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 45.05%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on
income, exemptions and deductions. Lower taxes will result in lower tax equivalent
yields. |
| (c) |
The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain. |
| (d) |
Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares
and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect
derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| |
07/31/26 |
07/31/25 |
Change |
High |
Low |
| Closing Market Price |
$ 12.20
|
$ 10.91
|
11.82 % |
$ 12.79
|
$ 10.91
|
| Net Asset Value |
12.13 |
11.73 |
3.41 |
12.62 |
11.72 |
GROWTH OF $10,000 INVESTMENT
(a)
Represents the Fund’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.
(b)
A benchmark that is designed to track the USD-denominated long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.
Fund Summary 11
Fund
Summary as of July 31,
2026(continued)
BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)
Performance
Returns for the period ended July 31, 2026 were as
follows:
| |
Average Annual Total Returns | ||
| |
1 Year |
5 Years |
10 Years |
| Fund at NAV(a)(b) |
9.23 % |
(0.68 )% |
1.89 % |
| Fund at Market Price(a)(b) |
18.11 |
(0.25 ) |
2.58 |
| Michigan Customized Reference Benchmark(c) |
5.04 |
0.37 |
N/A |
| Bloomberg Municipal Bond Index |
5.27 |
0.51 |
1.95 |
| (a) |
All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices and reflect the Fund’s use of leverage, if any. The performance
tables and graph do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the sale of Fund shares. |
| (b) |
The Fund moved from a discount to NAV to a premium during the period, which accounts for the difference between performance based on market price and performance based on
NAV. |
| (c) |
The Michigan Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond: Michigan Exempt Total Return Index Unhedged (90%) and the Michigan Bloomberg
Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). The
Michigan Customized Reference Benchmark commenced on September 30, 2016. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results.
Past performance is not an indication of future results.
The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future
performance.
More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Fund’s absolute
performance based on NAV:
Holdings on the
longer end of the yield curve, particularly 20- to 25-year maturities, contributed to performance due to the combination of income, price appreciation, and the
Fund’s use of leverage. At the sector level, holdings in tax-backed state, healthcare, and housing issues made the largest contributions, while tobacco
and high yield transportation issues detracted. In terms of credit tiers, AA rated bonds had the largest positive impact on results.
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.
These views are not intended to be a forecast of future events and are no guarantee of future results.
12
2026 BlackRock
Annual Report to Shareholders
Fund
Summary as of July 31,
2026(continued)
BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)
Overview of the Fund’s Total Investments
| SECTOR ALLOCATION | |
| Sector(a)
|
Percent of Total Investments(b) |
| County/City/Special District/School District |
28.8 % |
| State |
17.2 |
| Utilities |
15.0 |
| Education |
11.7 |
| Health |
9.2 |
| Housing |
6.8 |
| Transportation |
4.8 |
| Corporate |
4.6 |
| Tobacco |
1.9 |
| Construction & Engineering |
—
(c) |
| CALL/MATURITY SCHEDULE | |
| Calendar Year Ended December 31,(d) |
Percent of Total Investments(b) |
| 2026 |
8.3 % |
| 2027 |
1.2 |
| 2028 |
9.1 |
| 2029 |
7.5 |
| 2030 |
5.4 |
| CREDIT QUALITY ALLOCATION | |
| Credit
Rating(e) |
Percent of Total Investments(b) |
| AAA/Aaa |
2.8 % |
| AA/Aa |
74.6 |
| A |
14.5 |
| BBB/Baa |
2.8 |
| N/R |
5.3 |
| (a) |
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes. |
| (b) |
Excludes short-term securities. |
| (c) |
Rounds to less than 0.1%. |
| (d) |
Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (e) |
For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service,
Inc. if ratings differ. These rating agencies are independent, nationally
recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low
credit quality. Credit quality ratings are subject to change. |
Fund Summary 13
Fund
Summary as of July 31, 2026
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
Investment Objective
BlackRock MuniYield New York Quality Fund,
Inc.’s (MYN) (the “Fund”) investment objective is to provide stockholders with as high a level of current income
exempt from federal income taxes and New York State and New York City personal 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 an aggregate of the Fund’s net assets (including
proceeds from the issuance of any preferred stock) and the proceeds of any borrowings for investment purposes, in a portfolio of municipal obligations issued
by or on behalf of the State of New York, its political subdivisions, agencies and instrumentalities and by other qualifying instrumentalities, each of which
pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes (except that the interest may
be includable in taxable income for purposes of the federal alternative minimum tax) and exempt from New York State and New York City personal income taxes.
Under normal market conditions, the Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in
“investment grade” securities. The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are
considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through
the use of derivatives.
No assurance can be given that the
Fund’s investment objective will be achieved.
On June 6, 2025, the Fund’s Board of Directors and the Board of Trustees/Directors of each of BlackRock New York Municipal Income Trust (BNY) and BlackRock MuniHoldings New York Quality Fund, Inc. (MHN) (each, a “Target Fund”)
each approved the respective merger of BNY and MHN into MYN, with MYN continuing as the surviving Fund. Subsequently, the respective common and preferred
shareholders of each Target Fund and the preferred shareholders of MYN approved each respective merger, which were effective on February 9, 2026.
Fund Information
| Symbol on New York Stock Exchange |
MYN |
| Initial Offering Date |
February 28, 1992 |
| Yield on Closing Market Price as of July 31, 2026 ($9.70)(a) |
6.33% |
| Tax Equivalent Yield(b) |
13.11% |
| Current Monthly Distribution per Common Share(c) |
$0.051200 |
| Current Annualized Distribution per Common
Share(c) |
$0.614400 |
| Leverage as of July 31, 2026(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 is not an indication
of future results. |
| (b) |
Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 51.7%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on
income, exemptions and deductions. Lower taxes will result in lower tax equivalent
yields. |
| (c) |
The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain. |
| (d) |
Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares
and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect
derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| |
07/31/26 |
07/31/25 |
Change |
High |
Low |
| Closing Market Price |
$ 9.70
|
$ 9.20
|
5.43 % |
$ 10.23
|
$ 9.20
|
| Net Asset Value |
10.58 |
10.23 |
3.42 |
11.11 |
10.17 |
GROWTH OF $10,000 INVESTMENT
(a)
Represents the Fund’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.
(b)
A benchmark that is designed to track the USD-denominated long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.
14
2026 BlackRock Annual Report to Shareholders
Fund
Summary as of July 31,
2026(continued)
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
Performance
Returns for the period ended July 31, 2026 were as
follows:
| |
Average Annual Total Returns | ||
| |
1 Year |
5 Years |
10 Years |
| Fund at NAV(a)(b) |
9.99 % |
(1.46 )% |
1.28 % |
| Fund at Market Price(a)(b) |
12.13 |
(2.93 ) |
0.86 |
| New York Customized Reference Benchmark(c) |
5.59 |
0.53 |
N/A |
| Bloomberg Municipal Bond Index |
5.27 |
0.51 |
1.95 |
| (a) |
All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices and reflect the Fund’s use of leverage, if any. The performance
tables and graph do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the sale of Fund shares. |
| (b) |
The Fund’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.
|
| (c) |
The New York Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond: New York Exempt Total Return Index Unhedged (90%) and the New York Bloomberg
Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). The New
York Customized Reference Benchmark commenced on September 30, 2016. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S.
generally accepted accounting principles.
Past performance is not an indication of future results.
Past performance is not an indication of future results.
The Fund is presenting the performance of one or more indices for
informational purposes only. The Fund is actively managed and does not
seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment
strategies, portfolio components or past or future performance.
More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Fund’s absolute
performance based on NAV:
The Fund’s
total return reflects contributions from income and positive price action, both of which were augmented by the use of leverage. At the sector level, the largest contributions
came from transportation and housing issues. Holdings in bonds with 4% coupons also helped results.
At a time of robust returns for the Fund and the broader market, all segments of the portfolio contributed positively. A few individual securities finished with losses,
however, most notably in the transportation and tobacco sectors.
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.
These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund Summary 15
Fund
Summary as of July 31,
2026(continued)
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
Overview of the Fund’s Total Investments
| SECTOR ALLOCATION | |
| Sector(a)
|
Percent of Total Investments(b) |
| Transportation |
25.4 % |
| County/City/Special District/School District |
18.3 |
| Utilities |
15.5 |
| State |
11.2 |
| Housing |
8.6 |
| Corporate |
7.5 |
| Health |
6.1 |
| Education |
6.0 |
| Tobacco |
1.4 |
| Construction & Engineering |
—
(c) |
| CALL/MATURITY SCHEDULE | |
| Calendar Year Ended December 31,(d) |
Percent of Total Investments(b) |
| 2026 |
5.5 % |
| 2027 |
5.2 |
| 2028 |
4.4 |
| 2029 |
2.3 |
| 2030 |
8.7 |
| CREDIT QUALITY ALLOCATION | |
| Credit
Rating(e) |
Percent of Total Investments(b) |
| AAA/Aaa |
8.2 % |
| AA/Aa |
61.5 |
| A |
15.9 |
| BBB/Baa |
9.9 |
| BB/Ba |
0.3 |
| B |
0.4 |
| N/R |
3.8 |
| (a) |
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes. |
| (b) |
Excludes short-term securities. |
| (c) |
Rounds to less than 0.1%. |
| (d) |
Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (e) |
For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service,
Inc. if ratings differ. These rating agencies are independent, nationally
recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low
credit quality. Credit quality ratings are subject to change. |
16
2026 BlackRock
Annual Report to Shareholders
Fund
Summary as of July 31, 2026
BlackRock MuniYield Pennsylvania Quality Fund (MPA)
Investment Objective
BlackRock MuniYield Pennsylvania Quality
Fund’s (MPA) (the “Fund”) investment objective is to provide shareholders with as high a level of current income
exempt from federal and Pennsylvania 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 an aggregate of the Fund’s net assets (including proceeds from the issuance of any preferred
shares) and the proceeds of any borrowings for investment purposes, in a portfolio of municipal obligations issued by or on behalf of the State of
Pennsylvania, its political subdivisions, agencies and instrumentalities and by other qualifying issuers, each of which pays interest that, in the opinion of
bond counsel to the issuer, is excludable from gross income for federal income tax purposes (except that the interest may be includable in taxable income for
purposes of the federal alternative minimum tax) and exempt from Pennsylvania income taxes. Under normal market conditions, the Fund will invest at least 80%
of its net assets, plus the amount of any borrowings for investment purposes, in “investment grade” securities. The Fund may invest up to 20% of
its managed assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of
purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
On June 6, 2025, the Fund’s Board of Trustees and the Board of Directors of BlackRock MuniYield Quality Fund, Inc. (MQY) each approved the reorganization of MPA into MQY, with MQY continuing as the surviving Fund. The requisite shareholder approvals were not received for MPA and the reorganization of MPA did not occur.
Fund Information
| Symbol on New York Stock Exchange |
MPA |
| Initial Offering Date |
October 30, 1992 |
| Yield on Closing Market Price as of July 31, 2026 ($10.90)(a) |
5.25% |
| Tax Equivalent Yield(b) |
9.35% |
| Current Monthly Distribution per Common Share(c) |
$0.047700 |
| Current Annualized Distribution per Common
Share(c) |
$0.572400 |
| Leverage as of July 31, 2026(d) |
37% |
| (a) |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication
of future results. |
| (b) |
Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 43.87%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on
income, exemptions and deductions. Lower taxes will result in lower tax equivalent
yields. |
| (c) |
The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain. |
| (d) |
Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares
and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect
derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| |
07/31/26 |
07/31/25 |
Change |
High |
Low |
| Closing Market Price |
$ 10.90
|
$ 10.66
|
2.25 % |
$ 11.59
|
$ 10.66
|
| Net Asset Value |
12.04 |
11.66 |
3.26 |
12.62 |
11.63 |
GROWTH OF $10,000 INVESTMENT
(a)
Represents the Fund’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.
(b)
A benchmark that is designed to track the USD-denominated long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.
Fund Summary 17
Fund
Summary as of July 31,
2026(continued)
BlackRock MuniYield Pennsylvania Quality Fund (MPA)
Performance
Returns for the period ended July 31, 2026 were as
follows:
| |
Average Annual Total Returns | ||
| |
1 Year |
5 Years |
10 Years |
| Fund at NAV(a)(b) |
9.33 % |
(1.29 )% |
1.63 % |
| Fund at Market Price(a)(b) |
8.27 |
(2.75 ) |
1.05 |
| Pennsylvania Customized Reference Benchmark(c) |
5.66 |
0.59 |
N/A |
| Bloomberg Municipal Bond Index |
5.27 |
0.51 |
1.95 |
| (a) |
All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices and reflect the Fund’s use of leverage, if any. The performance
tables and graph do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the sale of Fund shares. |
| (b) |
The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.
|
| (c) |
The Pennsylvania Customized Reference Benchmark is comprised of the Bloomberg Pennsylvania Total Return Index Unhedged (90%) and the Pennsylvania Bloomberg Municipal
Bond: High Yield (non-Investment Grade) Total Return Index (10%). The Pennsylvania
Customized Reference Benchmark commenced on September 30, 2016. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S.
generally accepted accounting principles.
Past performance is not an indication of future results.
Past performance is not an indication of future results.
The Fund is presenting the performance of one or more indices for
informational purposes only. The Fund is actively managed and does not
seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment
strategies, portfolio components or past or future performance.
More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Fund’s absolute
performance based on NAV:
At the sector
level, positions in healthcare, education, transportation, tax-backed local, housing, and utility bonds made the largest contributions to absolute performance. The Fund also benefited from its positioning in intermediate- and longer-maturity municipal issues. Higher-coupon securities provided attractive income and further contributed
to returns. Favorable yield curve positioning and duration management supported performance, as well. (Duration is a measure of interest rate sensitivity.)
Transportation holdings were the primary detractor at the
sector level. Weakness in the bonds of Brightline West, which were issued to finance a high-speed rail project, were the primary cause of the shortfall. The Fund’s cash position had no material impact on performance.
The views expressed reflect the opinions of BlackRock as of the date of this report and are
subject to change based on changes in market, economic or other conditions.
These views are not intended to be a forecast of future events and are no guarantee of future results.
These views are not intended to be a forecast of future events and are no guarantee of future results.
18
2026 BlackRock
Annual Report to Shareholders
Fund
Summary as of July 31,
2026(continued)
BlackRock MuniYield Pennsylvania Quality Fund (MPA)
Overview of the Fund’s Total Investments
| SECTOR ALLOCATION | |
| Sector(a)
|
Percent of Total Investments(b) |
| County/City/Special District/School District |
19.6 % |
| Health |
18.0 |
| Education |
17.2 |
| Housing |
13.6 |
| Transportation |
10.5 |
| Utilities |
9.3 |
| State |
8.6 |
| Corporate |
2.6 |
| Other* |
0.6 |
| CALL/MATURITY SCHEDULE | |
| Calendar Year Ended December 31,(c) |
Percent of Total Investments(b) |
| 2026 |
5.5 % |
| 2027 |
5.2 |
| 2028 |
6.5 |
| 2029 |
4.2 |
| 2030 |
10.1 |
| CREDIT QUALITY ALLOCATION | |
| Credit
Rating(d) |
Percent of Total Investments(b) |
| AAA/Aaa |
1.4 % |
| AA/Aa |
59.7 |
| A |
18.5 |
| BBB/Baa |
8.8 |
| BB/Ba |
1.8 |
| B |
0.4 |
| N/R |
9.4 |
| (a) |
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes. |
| (b) |
Excludes short-term securities. |
| (c) |
Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (d) |
For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service,
Inc. if ratings differ. These rating agencies are independent, nationally
recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low
credit quality. Credit quality ratings are subject to change. |
| * |
Includes one or more investment categories that individually represents less than 1.0% of the Fund’s total investments. Please refer to the Schedule of Investments for
details. |
Fund Summary 19
Fund
Summary as of July 31, 2026
BlackRock Virginia Municipal Bond Trust (BHV)
Investment Objective
BlackRock Virginia Municipal Bond Trust’s (BHV) (the “Fund”) investment objective is to provide current income exempt from regular federal income
taxes and Virginia personal income tax. Under normal market conditions, the Fund will invest at least 80% of its managed assets in municipal bonds, the
interest of which is exempt from regular federal income tax and Virginia personal income tax. The Fund invests, under normal market conditions, at least 80% of
its managed assets in investment grade quality municipal bonds. 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.
On June 6, 2025, the Fund’s Board of Trustees and the Board of Directors of BlackRock MuniYield Quality Fund, Inc. (MQY) each
approved the reorganization of BHV into MQY, with MQY continuing as the surviving Fund. The requisite shareholder approvals were not received for BHV and the reorganization
of BHV did not occur.
Fund
Information
| Symbol on New York Stock Exchange |
BHV |
| Initial Offering Date |
April 30, 2002 |
| Yield on Closing Market Price as of July 31, 2026 ($12.81)(a) |
4.26% |
| Tax Equivalent Yield(b) |
7.97% |
| Current Monthly Distribution per Common Share(c) |
$0.045500 |
| Current Annualized Distribution per Common
Share(c) |
$0.546000 |
| Leverage as of July 31, 2026(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 is not an indication
of future results. |
| (b) |
Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 46.55%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on
income, exemptions and deductions. Lower taxes will result in lower tax equivalent
yields. |
| (c) |
The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain. |
| (d) |
Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares
and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect
derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| |
07/31/26 |
07/31/25 |
Change |
High |
Low |
| Closing Market Price |
$ 12.81
|
$ 10.45
|
22.58 % |
$ 13.25
|
$ 10.01
|
| Net Asset Value |
11.14 |
10.94 |
1.83 |
11.73 |
10.91 |
GROWTH OF $10,000 INVESTMENT
(a)
Represents the Fund’s closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.
(b)
A benchmark that is designed to track the USD-denominated long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.
20
2026 BlackRock Annual Report to Shareholders
Fund
Summary as of July 31,
2026(continued)
BlackRock Virginia Municipal Bond Trust (BHV)
Performance
Returns for the period ended July 31, 2026 were as
follows:
| |
Average Annual Total Returns | ||
| |
1 Year |
5 Years |
10 Years |
| Fund at NAV(a)(b) |
7.21 % |
(2.77 )% |
0.20 % |
| Fund at Market Price(a)(b) |
29.06 |
(2.49 ) |
0.17 |
| Virginia Customized Reference Benchmark(c) |
5.22 |
0.65 |
N/A |
| Bloomberg Municipal Bond Index |
5.27 |
0.51 |
1.95 |
| (a) |
All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices and reflect the Fund’s use of leverage, if any. The performance
tables and graph do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the sale of Fund shares. |
| (b) |
The Fund moved from a discount to NAV to a premium during the period, which accounts for the difference between performance based on market price and performance based on
NAV. |
| (c) |
The Virginia Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond: Virginia Exempt Total Return Index Unhedged (90%) and the Virginia
Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index
(10%). The Virginia Customized Reference Benchmark commenced on September 30, 2016. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results.
Past performance is not an indication of future results.
The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future
performance.
More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Fund’s absolute
performance based on NAV:
The Fund’s total return reflects contributions from income and positive price action, both of which were
augmented by the use of leverage. At the sector level, the largest contributions came from state and local general obligations, housing, and healthcare.
Holdings in bonds with 4% and 5% coupons also helped with results. On the other hand, positions in the tobacco sector detracted.
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.
These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund Summary 21
Fund
Summary as of July 31,
2026(continued)
BlackRock Virginia Municipal Bond Trust (BHV)
Overview of the Fund’s Total Investments
| SECTOR ALLOCATION | |
| Sector(a)
|
Percent of Total Investments(b) |
| County/City/Special District/School District |
21.4 % |
| State |
16.1 |
| Health |
15.1 |
| Housing |
13.6 |
| Utilities |
10.5 |
| Corporate |
7.3 |
| Transportation |
6.6 |
| Tobacco |
5.6 |
| Education |
3.8 |
| CALL/MATURITY SCHEDULE | |
| Calendar Year Ended December 31,(c) |
Percent of Total Investments(b) |
| 2026 |
13.6 % |
| 2027 |
2.4 |
| 2028 |
6.2 |
| 2029 |
3.5 |
| 2030 |
3.8 |
| CREDIT QUALITY ALLOCATION | |
| Credit
Rating(d) |
Percent of Total Investments(b) |
| AAA/Aaa |
16.9 % |
| AA/Aa |
50.1 |
| A |
7.1 |
| BBB/Baa |
5.1 |
| B |
3.9 |
| N/R |
16.9 |
| (a) |
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes. |
| (b) |
Excludes short-term securities. |
| (c) |
Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (d) |
For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service,
Inc. if ratings differ. These rating agencies are independent, nationally
recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low
credit quality. Credit quality ratings are subject to change. |
22
2026 BlackRock
Annual Report to Shareholders
Schedule of Investments
July 31, 2026
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Municipal Bonds | |||
| California — 127.5% |
| ||
| Corporate — 21.3% |
| ||
| California Community Choice Financing Authority, RB |
|
|
|
| Sustainability Bonds, 5.00%, 12/01/35 |
$ |
23,975 |
$ 25,569,088
|
| Sustainability Bonds, 5.00%, 07/01/53(a) |
|
57,200 |
59,286,547 |
| Sustainability Bonds, 5.00%,
12/01/53(a) |
|
6,020 |
6,230,788 |
| Sustainability Bonds, 5.50%, 10/01/54(a) |
|
49,420 |
53,275,225 |
| Series B, Sustainability Bonds, 5.00%,
01/01/55(a) |
|
22,495 |
22,954,301 |
| Series B, Sustainability Bonds, 5.00%, 03/01/56(a) |
|
23,000 |
24,008,782 |
| Series E-1, Sustainability Bonds, 5.00%, 02/01/54(a) |
|
13,805 |
14,376,465 |
| Series G, Sustainability Bonds, 5.25%, 11/01/54(a) |
|
41,835 |
43,673,707 |
| Series G, Sustainability Bonds, 5.00%,
11/01/55(a) |
|
17,595 |
17,938,836 |
| Sustainable Bonds, 5.00%, 10/01/34 |
|
8,000 |
8,457,593 |
| Sustainable Bonds, 5.00%, 06/01/36 |
|
10,000 |
10,643,551 |
| California Municipal Finance Authority, RB, Series A,
AMT, 4.38%, 09/01/53(a) |
|
2,935 |
3,035,375 |
| Central Valley Energy Authority, RB, 5.00%, 12/01/55(a) |
|
15,845 |
16,541,329 |
| |
|
|
305,991,587 |
| County/City/Special District/School District — 33.0% |
| ||
| Alameda Unified School District-Alameda County GO,
Series C, Election 2022, 08/01/55(b) |
|
7,000 |
7,306,904 |
| Albany Unified School District, GO, Election 2024, 5.00%, 08/01/55 |
|
975 |
1,017,758 |
| Alvord Unified School District, GO |
|
|
|
| Series B, Election 2022, (BAM), 5.00%, 08/01/51 |
|
900 |
942,866 |
| Series B, Election 2022, (BAM), 5.00%, 08/01/55 |
|
3,205 |
3,334,926 |
| Anaheim City School District, GO, (AGM), 5.00%, 08/01/51 |
|
5,615 |
5,777,538 |
| Antelope Valley Union High School District, GO |
|
|
|
| Series A, Election 2024, 5.00%, 08/01/50 |
|
5,000 |
5,229,396 |
| Series A, Election 2024, 5.00%, 08/01/54 |
|
2,000 |
2,076,287 |
| Berkeley Unified School District, GO, Series F, Election 2020, 5.00%, 08/01/54 |
|
10,000 |
10,388,942 |
| Butte-Glenn Community College District, GO,
Series D, Election 2016, 5.00%, 08/01/50 |
|
2,375 |
2,485,762 |
| California Pollution Control Financing Authority, Refunding RB, 5.00%, 11/21/45(c)
|
|
2,500 |
2,539,558 |
| California Statewide Communities Development
Authority, SAB, Series B, 5.00%, 09/02/52 |
|
2,340 |
2,303,683 |
| Cerritos Community College District, GO, Series B, Election 2022, 5.00%, 08/01/56 |
|
11,000 |
11,607,091 |
| Chabot-Las Positas Community College District, GO,
Series C, Election 2016, 5.25%, 08/01/48 |
|
20,280 |
21,509,410 |
| Chaffey Joint Union High School District, GO,
CAB(d) |
|
|
|
| Series H, Election 2012, 0.00%, 08/01/48 |
|
4,000 |
1,430,680 |
| Series H, Election 2012, 0.00%, 08/01/49 |
|
3,750 |
1,280,008 |
| City of Los Angeles, COP, (AMBAC), 6.20%,
11/01/31 |
|
1,200 |
1,203,452 |
| City of Oakland California, GO, Series D, 5.25%, 07/15/48 |
|
3,215 |
3,392,724 |
| City of Redlands COP, 5.00%, 05/01/56 |
|
9,500 |
9,829,541 |
| Clovis Unified School District, GO |
|
|
|
| Series C, Election 2020, 4.00%, 08/01/48 |
|
7,275 |
6,927,400 |
| Series A, Election 2024, 5.00%, 08/01/50 |
|
2,335 |
2,417,507 |
| Corona-Norco Unified School District, GO, Series D,
Election 2014, 5.00%, 08/01/49 |
|
4,240 |
4,472,645 |
| Cupertino Union School District, GO, Series A, Election 2024, 5.75%, 08/01/50 |
|
3,775 |
4,189,426 |
| Security |
|
Par (000) |
Value |
| County/City/Special District/School District (continued) |
| ||
| Downey Unified School District, GO, Series B,
Election 2022, 5.00%, 08/01/57 |
$ |
3,500 |
$ 3,641,232
|
| Dublin Unified School District, GO, Series B, Election 2020, 4.00%, 08/01/45 |
|
4,000 |
3,891,852 |
| El Rancho Unified School District, GO, Series D,
Election 2016, (BAM), 5.75%, 08/01/48 |
|
750 |
822,182 |
| Elk Grove Unified School District, GO, Election 2024, 5.25%, 08/01/52 |
|
5,000 |
5,318,335 |
| Etiwanda School District, GO, Series C, 5.25%,
08/01/52 |
|
7,175 |
7,429,932 |
| Grossmont-Cuyamaca Community College District, GO, Series D, Election 2022, 5.00%, 08/01/56 |
|
10,000 |
10,419,883 |
| Indio Finance Authority, Refunding RB, Series A,
(BAM), 5.25%, 11/01/52 |
|
7,000 |
7,255,061 |
| Jurupa Unified School District, GO, Series A, Election 2024, (BAM), 5.25%, 08/01/50 |
|
10,000 |
10,544,133 |
| La Mesa-Spring Valley School District, GO, Series B,
4.00%, 08/01/51 |
|
625 |
575,343 |
| Las Virgenes Unified School District, GO |
|
|
|
| Series B, Election 2022, 5.25%, 08/01/51 |
|
4,500 |
4,769,736 |
| Series B, Election 2022, 5.00%, 08/01/54 |
|
10,000 |
10,366,444 |
| Long Beach Community College District, GO,
Series E, 5.00%, 08/01/52 |
|
3,900 |
4,094,223 |
| Los Altos Elementary School District, GO, Series A, Election 2024, 5.00%, 08/01/55 |
|
10,000 |
10,432,905 |
| Los Angeles County Public Works Financing
Authority, Refunding RB |
|
|
|
| Series J, 5.25%, 12/01/50 |
|
6,795 |
7,292,582 |
| Series J, 5.50%, 12/01/54 |
|
4,200 |
4,556,599 |
| Menlo Park City School District, GO, Series A, Election 2024, 5.00%, 07/01/50 |
|
2,700 |
2,825,615 |
| Modesto High School District, GO, Series B, Election
2022, 5.25%, 08/01/50 |
|
4,295 |
4,600,866 |
| Mountain View Capital Improvements Financing Authority, RB |
|
|
|
| 5.00%, 05/01/51 |
|
2,120 |
2,234,470 |
| 5.00%, 05/01/56 |
|
2,930 |
3,059,791 |
| Mt San Antonio Community College District, GO |
|
|
|
| Series D, Election 2018, 4.00%, 08/01/49 |
|
3,500 |
3,303,981 |
| Series A, Election 2024, 5.00%, 08/01/50 |
|
3,600 |
3,795,284 |
| Municipal Improvement Corp of Los Angeles, RB, 5.50%, 05/01/55 |
|
7,000 |
7,426,315 |
| Napa Valley Unified School District, GO, Series A,
Election 2024, 5.25%, 08/01/50 |
|
3,500 |
3,711,701 |
| New Haven Unified School District, GO, Series A, Election 2024, 5.00%, 08/01/50 |
|
13,225 |
13,712,246 |
| Oak Grove School District, GO, Series A-1, 5.00%,
08/01/52 |
|
5,835 |
6,013,443 |
| Ontario Montclair School District, GO, Series C, Election 2016, 5.25%, 08/01/52 |
|
4,000 |
4,230,979 |
| Ontario Public Financing Authority, RB |
|
|
|
| Series A, 5.00%, 11/01/50 |
|
1,525 |
1,595,268 |
| Series A, 5.25%, 11/01/55 |
|
2,500 |
2,647,805 |
| Series D, 5.00%, 03/01/56 |
|
8,000 |
8,311,758 |
| Oxnard Union High School District, GO, Series B,
5.00%, 08/01/45 |
|
6,560 |
6,697,402 |
| Pajaro Valley Unified School District, GO, Series A, Election 2024, 5.00%, 08/01/49 |
|
3,445 |
3,626,131 |
| Palomar Community College District, GO,
Convertible, 6.38%, 08/01/45 |
|
9,888 |
9,627,979 |
| Paramount Unified School District, GO, Election 2024, 5.00%, 08/01/56 |
|
5,000 |
5,193,595 |
Schedule of Investments 23
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| County/City/Special District/School District (continued) |
| ||
| Peralta Community College District, GO |
|
|
|
| Series B, 5.50%, 08/01/52 |
$ |
2,500 |
$ 2,637,361
|
| Series C-1, Election 2018, 5.00%, 08/01/50 |
|
4,580 |
4,776,283 |
| Ravenswood City School District, GO, Election 2022, (BAM), 5.25%, 08/01/53 |
|
7,570 |
7,906,440 |
| Redwood City School District, GO, Series A, Election
2022, 5.00%, 08/01/52 |
|
6,000 |
6,216,281 |
| Rio Hondo Community College District, GO, Series A, Election 2024, 5.00%, 08/01/50 |
|
2,500 |
2,624,181 |
| Salinas Union High School District, GO |
|
|
|
| Series B, Election 2020, 5.00%, 08/01/48 |
|
7,250 |
7,647,762 |
| Series A, Election 2024, 5.00%, 08/01/50 |
|
1,500 |
1,568,819 |
| San Diego Community College District, GO, Series A-1, 5.00%, 08/01/55 |
|
1,000 |
1,050,770 |
| San Diego Public Facilities Financing Authority,
Refunding RB, Series A, 5.00%, 10/15/50 |
|
5,000 |
5,233,355 |
| San Diego Unified School District, GO |
|
|
|
| Series O-2, Election 2008, Sustainability Bonds,
5.00%, 07/01/49 |
|
2,375 |
2,498,540 |
| Series C-3, Election 2022, 5.00%, 07/01/50 |
|
11,060 |
11,671,772 |
| Sustainability Bonds, 4.00%, 07/01/53 |
|
2,550 |
2,379,126 |
| Sustainability Bonds, 4.00%, 07/01/54 |
|
10,000 |
9,299,530 |
| Series A-3, Sustainability Bonds, 5.00%, 07/01/48 |
|
3,000 |
3,148,195 |
| San Francisco Bay Area Rapid Transit District, GO |
|
|
|
| Series A, Election 2016, Sustainability Bonds,
5.00%, 08/01/47 |
|
2,290 |
2,311,867 |
| Series D-1, Election 2016, Sustainability Bonds, 4.00%, 08/01/47 |
|
9,075 |
8,639,903 |
| Series E-1, Election 2016, Sustainability Bonds,
5.00%, 08/01/45 |
|
2,500 |
2,715,012 |
| San Joaquin Delta Community College District, GO |
|
|
|
| Series B, Election 2024, 5.00%, 08/01/51 |
|
4,500 |
4,729,611 |
| Series B, Election 2024, 5.00%, 08/01/55 |
|
6,000 |
6,263,128 |
| San Marcos Unified School District, GO, Series A,
Election 2024, 5.25%, 08/01/55 |
|
2,700 |
2,854,246 |
| San Mateo Foster City School District, GO, Series C, Election 2020, 5.00%, 08/01/51 |
|
1,825 |
1,904,075 |
| San Mateo Joint Powers Financing Authority, RB |
|
|
|
| Series A, 5.00%, 07/15/43 |
|
1,965 |
2,011,314 |
| Series A, 4.00%, 07/15/52 |
|
8,955 |
8,253,119 |
| San Rafael City Elementary School District, GO, Series B, Election 2022, 4.00%, 08/01/54 |
|
10,000 |
9,153,874 |
| Scotts Valley Unified School District, GO, Series A-1,
Election 2024, 5.25%, 08/01/50 |
|
1,100 |
1,163,189 |
| Sequoia Union High School District, GO |
|
|
|
| Election 2022, 5.00%, 07/01/48 |
|
2,195 |
2,329,141 |
| Election 2022, 5.00%, 07/01/50 |
|
5,000 |
5,279,609 |
| South Orange County Public Financing Authority, RB,
5.00%, 06/01/52 |
|
5,000 |
5,140,610 |
| Sunnyvale School District, GO |
|
|
|
| Series A, Election 2024, 5.00%, 09/01/50 |
|
3,750 |
3,962,946 |
| Series A, Election 2024, 5.00%, 09/01/56 |
|
2,500 |
2,617,711 |
| Sweetwater Union High School District, GO,
Series A-2, Election 2024, 4.00%, 02/01/55 |
|
3,470 |
3,150,682 |
| Tamalpais Union High School District, GO |
|
|
|
| Series A, Election 2024, 4.00%, 08/01/47 |
|
4,670 |
4,571,311 |
| Series A, Election 2024, 4.13%, 08/01/49 |
|
2,300 |
2,270,934 |
| Series A, Election 2024, 4.13%, 08/01/50 |
|
6,000 |
5,879,467 |
| Union Elementary School District, GO,
CAB(b) |
|
|
|
| Series G, Election 2014, 09/01/48 |
|
7,090 |
2,355,765 |
| Series G, Election 2014, 09/01/49 |
|
8,540 |
2,675,080 |
| Security |
|
Par (000) |
Value |
| County/City/Special District/School District (continued) |
| ||
| Union Elementary School District, GO,
CAB(b) (continued) |
|
|
|
| Series G, Election 2014, 09/01/50 |
$ |
8,570 |
$ 2,540,688
|
| Val Verde Unified School District, GO, Series C,
Election 2020, (AGM), 4.00%, 08/01/49 |
|
5,000 |
4,677,935 |
| Victor Valley Community College District, GO, Series F, Election 2008, 5.00%, 08/01/52 |
|
3,225 |
3,362,690 |
| Washington Township Health Care District, GO,
Series B, Election 2004, 5.50%, 08/01/38 |
|
3,250 |
3,269,603 |
| West Valley-Mission Community College District, GO(b) |
|
|
|
| Series C, Election 2018, 08/01/50 |
|
1,750 |
1,654,479 |
| Series C, Election 2018, 08/01/50 |
|
3,580 |
3,784,858 |
| |
|
|
473,869,837 |
| Education — 9.7% |
| ||
| California Educational Facilities Authority, RB |
|
|
|
| Series A, 5.00%, 10/01/53 |
|
10,000 |
9,797,837 |
| Series A, 5.00%, 10/01/55 |
|
11,420 |
11,938,783 |
| Series U-7, 5.00%, 06/01/46 |
|
7,525 |
8,558,928 |
| California Enterprise Development Authority, RB(c) |
|
|
|
| 8.00%, 11/15/62 |
|
2,300 |
2,007,823 |
| Series A, 5.00%, 07/01/50 |
|
600 |
565,853 |
| California Infrastructure & Economic Development Bank, RB, 5.00%, 05/15/50 |
|
5,000 |
5,216,870 |
| California Municipal Finance Authority, Refunding
RB(c)(e)(f) |
|
|
|
| 5.00%, 08/01/39 |
|
615 |
459,463 |
| 5.00%, 08/01/48 |
|
860 |
565,743 |
| California School Finance Authority,
RB(c) |
|
|
|
| 5.00%, 08/01/52 |
|
1,875 |
1,694,467 |
| 5.00%, 08/01/61 |
|
2,950 |
2,653,001 |
| Series A, 5.00%, 07/01/54 |
|
1,150 |
1,101,575 |
| Series A, 5.00%, 07/01/59 |
|
2,565 |
2,387,573 |
| Series A, 5.00%, 08/01/59 |
|
2,365 |
2,134,787 |
| Series B, 4.00%, 07/01/45 |
|
930 |
786,863 |
| California School Finance Authority, Refunding RB(c) |
|
|
|
| Series A, 5.88%, 06/01/53 |
|
700 |
702,503 |
| Sustainability Bonds, 5.50%, 08/01/43 |
|
550 |
530,874 |
| Sustainability Bonds, 5.50%, 08/01/47 |
|
525 |
495,671 |
| California State University, RB |
|
|
|
| Series A, 5.25%, 11/01/48 |
|
3,010 |
3,209,456 |
| Series A, 5.50%, 11/01/49 |
|
15,745 |
17,147,261 |
| California State University, Refunding RB |
|
|
|
| Series A, 5.00%, 11/01/50 |
|
9,260 |
9,403,130 |
| Series A, 5.25%, 11/01/50 |
|
18,640 |
20,025,796 |
| Series A, 4.63%, 11/01/56 |
|
9,500 |
9,563,846 |
| Series A, 5.00%, 11/01/57 |
|
6,000 |
6,266,554 |
| University of California, RB, Series CC, 5.00%,
05/15/53 |
|
2,140 |
2,235,919 |
| University of California, Refunding RB |
|
|
|
| Series BW, 5.00%, 05/15/54 |
|
12,500 |
12,996,896 |
| Series O, 5.00%, 05/15/48 |
|
2,990 |
3,041,808 |
| Series Q, 3.00%, 05/15/51 |
|
6,000 |
4,358,372 |
| |
|
|
139,847,652 |
| Health — 5.0% |
| ||
| California Health Facilities Financing Authority, RB |
|
|
|
| Series A, 5.00%, 11/15/48 |
|
4,190 |
4,238,040 |
| Series A, 5.00%, 11/01/49 |
|
2,095 |
2,178,989 |
| California Health Facilities Financing Authority,
Refunding RB |
|
|
|
| (BAM-TCRS), 4.00%, 08/15/48 |
|
5,005 |
4,694,336 |
24
2026 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Health (continued) |
| ||
| California Health Facilities Financing Authority,
Refunding RB (continued) |
|
|
|
| Series A, 5.00%, 11/15/48 |
$ |
19,550 |
$ 19,774,151
|
| Series A, 5.00%, 08/15/51 |
|
5,000 |
5,314,760 |
| Series A, 5.25%, 08/15/54 |
|
11,000 |
11,662,527 |
| Sub-Series A-2, 5.00%, 11/01/47 |
|
1,880 |
2,030,844 |
| California Public Finance Authority, RB, Series A, 6.38%, 06/01/59(c) |
|
9,125 |
8,544,373 |
| Regents of the University of California Medical Center
Pooled Revenue, RB |
|
|
|
| Series P, 5.00%, 05/15/47 |
|
8,410 |
8,785,726 |
| Series P, 4.00%, 05/15/53 |
|
5,000 |
4,562,674 |
| |
|
|
71,786,420 |
| Housing — 6.0% |
| ||
| California Housing Finance Agency, RB, M/F Housing |
|
|
|
| Class I, 5.80%, 04/01/36(c) |
|
2,140 |
2,091,914 |
| Series A, 4.25%, 01/15/35 |
|
— (g) |
611 |
| Subordinate, 8.00%, 12/01/56(a) |
|
1,900 |
1,862,538 |
| Series 2021-2, Class A, Sustainability Bonds, (FHLMC), 3.75%, 03/25/35 |
|
12,560 |
12,456,194 |
| Series U, Sustainability Bonds, (FNMA), 4.10%,
09/01/40 |
|
10,000 |
9,615,648 |
| Series V, Sustainability Bonds, (FNMA), 4.10%, 09/01/40 |
|
10,000 |
9,625,773 |
| Series A, Sustainable Bonds, 4.65%, 02/01/56 |
|
8,000 |
7,825,547 |
| California Municipal Finance Authority, RB, M/F Housing |
|
|
|
| 6.00%, 06/01/38(a)(c) |
|
2,200 |
2,162,701 |
| 5.35%, 06/20/46 |
|
5,000 |
5,258,663 |
| Series 2023, 5.67%, 06/01/56(a)(c) |
|
1,915 |
1,903,491 |
| Series A, 6.05%, 07/01/41(c) |
|
2,920 |
2,920,000 |
| Series A, (FNMA), 4.88%, 11/01/43 |
|
3,100 |
3,115,654 |
| Subordinate, 9.00%, 06/01/56(a)(c)
|
|
1,760 |
1,734,638 |
| Subordinate, 8.00%, 08/01/56(a)(c) |
|
1,185 |
1,161,796 |
| Subordinate, 9.50%, 08/01/56(a)(c)
|
|
2,780 |
2,771,554 |
| Subordinate, 8.00%, 02/01/57(a)(c) |
|
1,125 |
1,125,000 |
| California Statewide Communities Development Authority, RB, M/F Housing(c)
|
|
|
|
| Class I, 5.80%, 06/01/36 |
|
2,865 |
2,773,086 |
| Subordinate, 7.50%, 01/01/37 |
|
2,200 |
2,124,962 |
| CSCDA Community Improvement Authority, RB, M/F
Housing(c) |
|
|
|
| Series A, 3.00%, 09/01/56 |
|
1,475 |
990,040 |
| Mezzanine Lien, 4.00%, 05/01/57 |
|
7,500 |
4,921,147 |
| Heart-SV, RB, M/F Housing, Series A, 5.38%, 06/01/61(c) |
|
2,600 |
2,422,410 |
| Sacramento Housing Authority, RB, M/F Housing,
Class IA, 5.80%, 07/01/38(c) |
|
3,400 |
3,242,211 |
| Santa Clara County Housing Authority, RB, M/F Housing, Series A, 6.00%, 08/01/41 |
|
3,500 |
3,559,548 |
| |
|
|
85,665,126 |
| State — 9.3% |
| ||
| California Municipal Finance Authority, ST, Series A,
5.13%, 09/01/59 |
|
1,250 |
1,239,769 |
| California State Public Works Board, RB |
|
|
|
| Series A, 5.00%, 04/01/45 |
|
8,670 |
9,266,102 |
| Series A, 5.00%, 04/01/46 |
|
14,300 |
15,197,188 |
| Series A, 5.00%, 09/01/49 |
|
3,050 |
3,189,997 |
| Series A, 5.00%, 04/01/50 |
|
19,275 |
20,086,067 |
| Series A, 5.00%, 09/01/50 |
|
2,075 |
2,165,793 |
| Series C, 5.00%, 11/01/50 |
|
5,910 |
6,172,265 |
| Series D, 5.00%, 11/01/47 |
|
18,275 |
19,165,369 |
| Security |
|
Par (000) |
Value |
| State (continued) |
| ||
| California Statewide Communities Development
Authority, SAB, Series C, 4.00%, 09/02/50 |
$ |
4,985 |
$ 4,192,934
|
| California Statewide Communities Development Authority, SAB, M/F Housing, 5.00%, 09/02/39 |
|
1,060 |
1,086,112 |
| City of Irvine, Refunding ST, (BAM), 5.00%, 09/01/51 |
|
875 |
918,240 |
| Irvine Facilities Financing Authority, ST, Series A, 5.00%, 09/01/43 |
|
1,275 |
1,359,563 |
| Orange County Community Facilities District, ST |
|
|
|
| 5.00%, 08/15/46 |
|
560 |
570,589 |
| 5.00%, 08/15/51 |
|
1,205 |
1,209,990 |
| 5.00%, 08/15/56 |
|
1,305 |
1,305,314 |
| Sacramento Area Flood Control Agency, Refunding
SAB, 5.00%, 10/01/47 |
|
4,000 |
4,015,365 |
| State of California, GO, Class C, 5.00%, 11/01/50 |
|
5,985 |
6,290,067 |
| State of California, Refunding GO |
|
|
|
| 5.00%, 10/01/45 |
|
5,000 |
5,301,550 |
| 5.00%, 09/01/52 |
|
5,000 |
5,186,066 |
| 5.00%, 10/01/56 |
|
6,485 |
6,816,471 |
| Series CX, 4.50%, 12/01/50 |
|
19,425 |
19,120,793 |
| |
|
|
133,855,604 |
| Tobacco — 4.2% |
| ||
| California County Tobacco Securitization Agency, RB, Series D, 0.00%, 06/01/55(d) |
|
5,855 |
419,058 |
| California County Tobacco Securitization Agency,
Refunding RB |
|
|
|
| 5.00%, 06/01/50 |
|
4,205 |
3,857,078 |
| Series A, 4.00%, 06/01/49 |
|
2,755 |
2,437,544 |
| California County Tobacco Securitization Agency, Refunding RB, CAB(d) |
|
|
|
| 0.00%, 06/01/55 |
|
10,000 |
1,978,584 |
| Series B-2, Subordinate, 0.00%, 06/01/55 |
|
10,320 |
1,716,388 |
| California Statewide Financing Authority, RB(c)(d) |
|
|
|
| Series D, 0.00%, 06/01/55 |
|
5,000 |
293,226 |
| Series L, 0.00%, 06/01/55 |
|
57,200 |
3,495,532 |
| Golden State Tobacco Securitization Corp., Refunding RB, Series B, 5.00%, 06/01/51 |
|
23,515 |
22,858,520 |
| Golden State Tobacco Securitization Corp.,
Refunding RB, CAB, Series B-2, Subordinate,
0.00%, 06/01/66(d) |
|
64,965 |
6,072,577 |
| Inland Empire Tobacco Securitization Corp., RB, Series C-1, 0.00%, 06/01/36(d)
|
|
2,855 |
1,431,471 |
| Tobacco Securitization Authority of Southern
California, Refunding RB, 5.00%, 06/01/48 |
|
12,250 |
12,300,744 |
| Tobacco Securitization Authority of Southern California, Refunding RB, CAB, 0.00%,
06/01/54(d) |
|
22,600 |
3,978,145 |
| |
|
|
60,838,867 |
| Transportation — 25.8% |
| ||
| Alameda Corridor Transportation Authority, Refunding
RB, Series B, Sub Lien, 5.00%, 10/01/37 |
|
3,790 |
3,796,832 |
| Bay Area Toll Authority, RB, Series F2, Sustainability Bonds, 5.00%, 04/01/47 |
|
5,000 |
5,328,915 |
| Burbank-Glendale-Pasadena Airport Authority Brick
Campaign, ARB |
|
|
|
| Series B, AMT, (AGM), 4.38%, 07/01/49 |
|
2,400 |
2,283,683 |
| Series B, AMT, 5.25%, 07/01/49 |
|
5,385 |
5,570,210 |
| Series B, AMT, 5.25%, 07/01/54 |
|
10,000 |
10,250,960 |
| Burbank-Glendale-Pasadena Airport Authority Brick
Campaign, Refunding ARB, Series B, AMT, (AGM),
5.50%, 07/01/55 |
|
7,500 |
7,894,842 |
| California Infrastructure & Economic Development Bank, Refunding RB, Class B, AMT, Sustainability Bonds, 12.00%, 01/01/65(a)(c)
|
|
42,785 |
27,382,400 |
Schedule of Investments 25
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Transportation (continued) |
| ||
| California Municipal Finance Authority, ARB, AMT,
Senior Lien, 4.00%, 12/31/47 |
$ |
21,415 |
$ 18,892,756
|
| California Municipal Finance Authority, RB |
|
|
|
| 5.50%, 09/01/56 |
|
4,065 |
4,337,016 |
| 5.50%, 09/01/60 |
|
8,505 |
9,026,796 |
| City of Long Beach California Harbor Revenue, ARB,
Series A, AMT, 5.00%, 05/15/40 |
|
5,000 |
5,044,342 |
| City of Long Beach California Harbor Revenue, Refunding ARB, Series C, 5.00%, 05/15/47 |
|
1,480 |
1,492,563 |
| City of Los Angeles Department of Airports, ARB |
|
|
|
| Series A, AMT, 5.00%, 05/15/44 |
|
8,525 |
8,610,098 |
| Series A, AMT, 4.00%, 05/15/49 |
|
5,000 |
4,434,422 |
| Series B, AMT, 5.00%, 05/15/36 |
|
1,090 |
1,093,818 |
| Series B, AMT, 5.00%, 05/15/41 |
|
14,500 |
14,549,945 |
| Series B, AMT, 5.00%, 05/15/46 |
|
7,860 |
7,861,103 |
| Series C, AMT, Subordinate, 5.00%, 05/15/44 |
|
4,130 |
4,159,914 |
| AMT, Sustainability Bonds, 5.00%, 05/15/47 |
|
7,345 |
7,462,444 |
| AMT, Sustainability Bonds, 5.25%, 05/15/47 |
|
3,900 |
4,018,599 |
| City of Los Angeles Department of Airports, Refunding ARB |
|
|
|
| AMT, 5.50%, 05/15/40 |
|
3,490 |
3,722,241 |
| AMT, 5.50%, 05/15/47 |
|
6,700 |
6,994,285 |
| AMT, 5.00%, 05/15/48 |
|
1,500 |
1,504,780 |
| Series A, AMT, 5.00%, 05/15/46 |
|
12,500 |
12,710,461 |
| Series S, AMT, 5.00%, 05/15/40 |
|
4,450 |
4,607,334 |
| AMT, Subordinate, 4.00%,
05/15/41(h) |
|
115 |
118,972 |
| City of Los Angeles Department of Airports,
Refunding RB |
|
|
|
| AMT, Sustainable Bonds, 5.00%, 05/15/55 |
|
5,000 |
5,047,465 |
| Class D, Subordinate, 5.00%, 05/15/48 |
|
5,000 |
5,259,705 |
| Series D, Subordinate, 5.25%, 05/15/51 |
|
5,000 |
5,295,843 |
| County of Sacramento California Airport System
Revenue, ARB |
|
|
|
| 5.00%, 07/01/49 |
|
8,000 |
8,348,295 |
| 5.25%, 07/01/49 |
|
1,310 |
1,388,760 |
| Series A, AMT, 5.25%, 07/01/50 |
|
1,300 |
1,345,633 |
| County of Sacramento California Airport System
Revenue, Refunding RB, Series C, AMT, 5.00%,
07/01/39 |
|
4,000 |
4,067,161 |
| Foothill-Eastern Transportation Corridor Agency, Refunding RB, Series B-2, 3.50%, 01/15/53 |
|
9,000 |
7,085,906 |
| Norman Y Mineta San Jose International Airport SJC,
Refunding RB |
|
|
|
| Series A, AMT, 5.00%, 03/01/33 |
|
2,000 |
2,111,930 |
| Series A, AMT, 5.00%, 03/01/37 |
|
1,280 |
1,288,424 |
| Series A, AMT, 5.00%, 03/01/41 |
|
11,250 |
11,299,979 |
| San Diego County Regional Airport Authority, ARB |
|
|
|
| Series B, AMT, 5.00%, 07/01/47 |
|
9,485 |
9,496,815 |
| Series B, AMT, 5.00%, 07/01/48 |
|
6,890 |
6,960,532 |
| Series B, AMT, 5.25%, 07/01/50 |
|
15,750 |
16,302,861 |
| Series B, AMT, 5.00%, 07/01/53 |
|
6,000 |
6,023,484 |
| Series B, AMT, Subordinate, 5.00%, 07/01/51 |
|
11,500 |
11,525,008 |
| San Francisco City & County Airport Comm-San
Francisco International Airport, Refunding ARB |
|
|
|
| Class A, AMT, 5.25%, 05/01/49 |
|
4,050 |
4,192,039 |
| Series A, AMT, 5.25%, 05/01/55 |
|
6,595 |
6,802,090 |
| Series A, AMT, 5.50%, 05/01/55 |
|
16,120 |
16,922,858 |
| Series D, AMT, 5.00%, 05/01/43 |
|
6,130 |
6,200,108 |
| Series D, AMT, 5.50%, 05/01/55 |
|
8,755 |
9,191,044 |
| Security |
|
Par (000) |
Value |
| Transportation (continued) |
| ||
| San Francisco City & County Airport Comm-San
Francisco International Airport, Refunding
ARB (continued) |
|
|
|
| Series E, AMT, 5.00%, 05/01/50 |
$ |
24,865 |
$ 24,919,042
|
| San Francisco City & County Airport Comm-San
Francisco International Airport, Refunding RB |
|
|
|
| Series A, AMT, 5.50%, 05/01/56 |
|
8,000 |
8,426,285 |
| Series C, AMT, 5.75%, 05/01/48 |
|
6,900 |
7,386,752 |
| |
|
|
370,037,750 |
| Utilities — 13.2% |
| ||
| California Infrastructure & Economic Development Bank, RB, Sustainability Bonds, 5.00%, 10/01/48 |
|
10,000 |
10,137,774 |
| California Pollution Control Financing Authority,
Refunding RB, 5.00%, 07/01/39(c) |
|
1,000 |
1,018,217 |
| City of Los Angeles California Wastewater System Revenue, Refunding RB, Series A, Subordinate, 5.00%, 06/01/55 |
|
5,000 |
5,224,065 |
| City of San Francisco California Public Utilities
Commission Water Revenue, RB, Series C,
4.00%, 11/01/50 |
|
11,900 |
11,335,111 |
| City of San Francisco California Public Utilities Commission Water Revenue, Refunding RB |
|
|
|
| Class D, 5.00%, 11/01/51 |
|
5,200 |
5,469,019 |
| Class D, 5.00%, 11/01/55 |
|
14,550 |
15,170,787 |
| Coachella Valley Water District Stormwater System
Revenue, COP, Series A, 5.00%, 08/01/47 |
|
1,250 |
1,308,602 |
| Contra Costa Water District, Refunding RB, Series V, 5.00%, 10/01/44 |
|
3,570 |
3,697,901 |
| East Bay Municipal Utility District Wastewater System
Revenue, RB, Series A, Sustainability Bonds,
5.00%, 06/01/50 |
|
1,435 |
1,519,612 |
| East Bay Municipal Utility District Water System Revenue, RB |
|
|
|
| Series A, Sustainability Bonds, 5.00%, 06/01/49 |
|
3,835 |
3,931,754 |
| Series A, Sustainability Bonds, 5.00%, 06/01/51 |
|
4,500 |
4,773,570 |
| Series A, Sustainability Bonds, 5.00%, 06/01/55 |
|
8,760 |
9,172,484 |
| Series A, Sustainable Bonds, 5.00%, 06/01/56 |
|
11,895 |
12,443,559 |
| Livermore Valley Water Financing Authority, RB |
|
|
|
| Series A, 5.00%, 07/01/48 |
|
1,795 |
1,863,994 |
| Series A, 5.00%, 07/01/53 |
|
2,740 |
2,822,825 |
| Los Angeles County Public Works Financing Authority, RB |
|
|
|
| 5.00%, 03/01/51 |
|
2,625 |
2,758,336 |
| 5.00%, 03/01/56 |
|
4,455 |
4,642,544 |
| Moreno Valley Public Financing Authority, Refunding
RB, Series A, (AGM), 5.25%, 05/01/56 |
|
4,000 |
4,242,861 |
| Mountain House Financing Authority, RB, Series A, Sustainability Bonds, (BAM), 4.00%, 12/01/50 |
|
4,500 |
4,084,283 |
| Ontario Public Financing Authority, RB, Series A,
5.00%, 08/01/49 |
|
1,625 |
1,702,470 |
| Puente Basin Water Agency, RB, Series A, 5.00%, 06/01/49 |
|
4,490 |
4,696,997 |
| Rancho Water District Financing Authority, RB,
Series A, 4.00%, 08/01/56 |
|
1,860 |
1,717,591 |
| Sacramento Municipal Utility District, Refunding RB |
|
|
|
| Series H, Sustainability Bonds, 5.00%, 08/15/50 |
|
3,730 |
3,842,753 |
| Series K, Sustainability Bonds, 5.00%, 08/15/53 |
|
17,000 |
17,811,662 |
| Series M, Sustainability Bonds, 5.00%, 11/15/45 |
|
1,000 |
1,069,839 |
| Series M, Sustainability Bonds, 5.00%, 11/15/49 |
|
2,770 |
2,923,330 |
26
2026 BlackRock
Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Utilities (continued) |
| ||
| San Diego Public Facilities Financing Authority, RB |
|
|
|
| Series A, 5.00%, 05/15/49 |
$ |
1,160 |
$ 1,217,913
|
| Series A, 5.00%, 05/15/54 |
|
10,175 |
10,572,978 |
| Series A, Subordinate, 5.00%, 05/15/52 |
|
6,970 |
7,211,362 |
| San Diego Public Facilities Financing Authority,
Refunding RB |
|
|
|
| Series A, 4.00%, 08/01/52 |
|
5,000 |
4,629,480 |
| Series A, Subordinate, 5.00%, 05/15/56 |
|
7,200 |
7,502,545 |
| San Francisco City & County Public Utilities Commission Wastewater Revenue, Refunding RB |
|
|
|
| Series C, Sustainability Bonds, 5.00%, 10/01/49 |
|
1,975 |
2,070,690 |
| Series C, Sustainability Bonds, 5.00%, 10/01/54 |
|
1,200 |
1,246,344 |
| San Mateo Foster City Public Financing Authority, RB,
5.00%, 08/01/49 |
|
4,840 |
5,022,464 |
| Santa Ana Public Financing Authority, Refunding RB, 5.00%, 09/01/49 |
|
1,685 |
1,757,793 |
| Sonoma County Water Agency, Refunding RB,
Series A, 4.00%, 07/01/51 |
|
6,195 |
5,738,410 |
| Southern California Water Replenishment District, RB, 4.00%, 08/01/56 |
|
3,825 |
3,507,923 |
| |
|
|
189,859,842 |
| Total Municipal Bonds in California |
1,831,752,685 | ||
| Puerto Rico — 4.2% |
| ||
| State — 4.2% |
| ||
| Puerto Rico Sales Tax Financing Corp., Sales Tax
Revenue, RB |
|
|
|
| Series A-1, Restructured, (FHLMC, FNMA, GNMA), 4.75%, 07/01/53 |
|
10,122 |
9,609,752 |
| Series A-1, Restructured, 5.00%, 07/01/58 |
|
30,227 |
29,042,044 |
| Series A-2, Restructured, 4.78%, 07/01/58 |
|
4,946 |
4,675,241 |
| Series A-2, Restructured, 4.33%, 07/01/40 |
|
925 |
903,165 |
| Series B-1, Restructured, 4.75%, 07/01/53 |
|
1,063 |
1,009,204 |
| Series B-1, Restructured, 5.00%, 07/01/58 |
|
4,314 |
4,100,141 |
| Series B-2, Restructured, 4.78%, 07/01/58 |
|
1,535 |
1,444,100 |
| Puerto Rico Sales Tax Financing Corp., Sales Tax
Revenue, RB, CAB, Series A-1, Restructured,
0.00%, 07/01/46(d) |
|
26,761 |
9,737,820 |
| Total Municipal Bonds in Puerto Rico |
60,521,467 | ||
| Total Municipal Bonds — 131.7% (Cost: $1,904,522,173) |
1,892,274,152 | ||
| Municipal Bonds Transferred to Tender Option Bond Trusts(i) | |||
| California — 32.2% | |||
| County/City/Special District/School District — 8.6% |
| ||
| California Municipal Finance Authority, RB, 5.00%,
06/01/48 |
|
15,000 |
15,192,520 |
| Clovis Unified School District, GO, Election 2020, Series B, 5.00%, 08/01/47 |
|
10,000 |
10,332,353 |
| Irvine Facilities Financing Authority, ST, Series A,
5.00%, 09/01/48 |
|
20,000 |
20,805,841 |
| Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue, Refunding RB, Sustainability Bonds, Series A, 5.00%, 07/01/44 |
|
11,200 |
11,562,066 |
| Los Angeles Unified School District, GO,
Sustainability Bonds, 5.25%, 07/01/48 |
|
25,000 |
26,573,654 |
| Security |
|
Par (000) |
Value |
| County/City/Special District/School District (continued) |
| ||
| Mt San Antonio Community College District, GO,
Election 2024, Series A, 5.25%, 08/01/55 |
$ |
12,000 |
$ 12,749,472
|
| Murrieta Valley Unified School District, GO, Series 2025-ZL, 5.25%, 09/01/51 |
|
11,700 |
12,139,898 |
| Rio Hondo Community College District, GO, Election
2024, Series A, 5.25%, 08/01/55 |
|
14,000 |
14,789,177 |
| |
|
|
124,144,981 |
| Education — 7.2% |
| ||
| California State University, Refunding RB |
|
|
|
| Series A, 5.00%, 11/01/48 |
|
10,070 |
10,248,986 |
| Series A, 5.25%, 11/01/50(j) |
|
20,000 |
21,486,906 |
| Series A, 5.25%, 11/01/56(j) |
|
13,000 |
13,826,566 |
| University of California, RB, Series BK, 5.00%, 05/15/52 |
|
56,410 |
58,449,733 |
| |
|
|
104,012,191 |
| Health — 1.9% |
| ||
| Regents of the University of California Medical Center
Pooled Revenue, RB, Series P, 5.00%, 05/15/47 |
|
25,625 |
26,769,823 |
| State — 1.6% |
| ||
| State of California, Refunding GO |
|
|
|
| 5.00%, 03/01/49 |
|
8,750 |
9,242,284 |
| 5.25%, 10/01/51 |
|
12,500 |
13,474,536 |
| |
|
|
22,716,820 |
| Transportation — 10.4% |
| ||
| City of Los Angeles Department of Airports, Refunding ARB |
|
|
|
| Series A, AMT, Sustainability Bonds, 5.25%,
05/15/50 |
|
19,365 |
20,120,837 |
| Series S, AMT, 5.00%, 05/15/51 |
|
19,235 |
19,364,792 |
| City of Los Angeles Department of Airports,
Refunding RB, AMT, Sustainability Bonds,
Series A, 5.50%, 05/15/55 |
|
25,000 |
26,194,850 |
| San Diego County Regional Airport Authority, ARB, AMT, Series B, 5.00%, 07/01/48 |
|
20,795 |
21,007,876 |
| San Francisco City & County Airport Comm-San
Francisco International Airport, Refunding ARB(j) |
|
|
|
| 2nd Series, Class D, AMT, 5.00%, 05/01/48 |
|
30,660 |
30,747,716 |
| Series A, AMT, 5.50%, 05/01/55 |
|
20,000 |
20,996,101 |
| San Francisco City & County Airport Comm-San Francisco International Airport, Refunding RB, AMT, Series C, 5.75%, 05/01/48(j)
|
|
9,600 |
10,277,220 |
| |
|
|
148,709,392 |
| Utilities — 2.5% |
| ||
| City of San Francisco California Public Utilities
Commission Water Revenue, RB, Series B, 5.00%,
11/01/50 |
|
11,690 |
11,786,309 |
Schedule of Investments 27
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Utilities (continued) |
| ||
| San Francisco City & County Public Utilities
Commission Wastewater Revenue, Refunding RB |
|
|
|
| Series A, Sustainability Bonds, 4.00%, 10/01/49 |
$ |
12,790 |
$ 12,213,482
|
| Series F, 5.00%, 10/01/54 |
|
11,865 |
12,323,225 |
| |
|
|
36,323,016 |
| Total Municipal Bonds in California |
462,676,223 | ||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 32.2% (Cost: $458,295,501) |
462,676,223 | ||
| |
|
Shares |
|
| Warrants | |||
| Construction & Engineering — 0.3% |
| ||
| Brightline West, (Expires 11/26/35, Strike Price USD 5.00)(f)(k) |
|
2,022,370 |
4,044,740 |
| Total Warrants — 0.3% (Cost: $ — ) |
4,044,740 | ||
| Total Long-Term Investments — 164.2% (Cost: $2,362,817,674) |
2,358,995,115 | ||
| Short-Term Securities | |||
| Money Market Funds — 3.1% |
|
||
| BlackRock Liquidity Funds, MuniCash, Institutional
Shares, 2.19%(l)(m) |
|
45,307,289 |
45,311,820 |
| Total Short-Term Securities — 3.1% (Cost: $45,311,820) |
45,311,820 | ||
| Total Investments — 167.3% (Cost: $2,408,129,494) |
2,404,306,935 | ||
| Other Assets Less Liabilities — 1.4% |
19,800,727 | ||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (20.2)% |
(290,109,482 ) | ||
| VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (48.5)% |
(697,177,119 ) | ||
| Net Assets Applicable to Common Shares — 100.0% |
$ 1,436,821,061 | ||
| (a) |
Variable rate security. Interest rate resets periodically. The rate shown is the effective
interest rate as of period end. Security description also includes the reference rate and
spread if published and available. |
| (b) |
When-issued security. |
| (c) |
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. |
| (d) |
Zero-coupon bond. |
| (e) |
Issuer filed for bankruptcy and/or is in default. |
| (f) |
Non-income producing security. |
| (g) |
Rounds to less than 1,000. |
| (h) |
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. |
| (i) |
Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates
received by the Fund. These bonds serve as collateral in a secured borrowing. See
Note 4 of the Notes to Financial Statements for details. |
| (j) |
All or a portion of the security is subject to a recourse agreement. The aggregate
maximum potential amount the Fund could ultimately be required to pay under the
agreements, which expire between May 1, 2027 to May 1, 2033, is $60,852,047.
See Note 4 of the Notes to Financial Statements for details. |
| (k) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the
fair value hierarchy. |
| (l) |
Affiliate of the Fund. |
| (m) |
Annualized 7-day yield as of period end. |
For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund
during the year ended July 31, 2026 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliated Issuer |
Value at 07/31/25 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 07/31/26 |
Shares Held at 07/31/26 |
Income |
Capital Gain Distributions from Underlying Funds |
| BlackRock Liquidity Funds, MuniCash, Institutional Shares |
$ 18,804,567 |
$ 26,507,253
(a) |
$ — |
$ — |
$ — |
$ 45,311,820 |
45,307,289 |
$ 1,667,110 |
$ — |
| (a) |
Represents net amount purchased (sold). |
28
2026 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of
financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial
instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Assets |
|
|
|
|
| Investments |
|
|
|
|
| Long-Term Investments |
|
|
|
|
| Municipal Bonds |
$ —
|
$ 1,892,274,152
|
$ —
|
$ 1,892,274,152
|
| Municipal Bonds Transferred to Tender Option Bond Trusts |
— |
462,676,223 |
— |
462,676,223 |
| Warrants |
— |
— |
4,044,740 |
4,044,740 |
| Short-Term Securities |
|
|
|
|
| Money Market Funds |
45,311,820 |
— |
— |
45,311,820 |
| |
$45,311,820 |
$2,354,950,375 |
$4,044,740 |
$2,404,306,935 |
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Liabilities |
|
|
|
|
| TOB Trust Certificates |
$—
|
$(288,434,986
) |
$—
|
$(288,434,986
) |
| VRDP Shares at Liquidation Value |
— |
(697,700,000 ) |
— |
(697,700,000 ) |
| |
$— |
$(986,134,986 ) |
$— |
$(986,134,986 ) |
See notes to financial
statements.
Schedule of Investments 29
Schedule of Investments
July 31, 2026
BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Municipal Bonds | |||
| California — 0.2% |
| ||
| Transportation — 0.2% |
| ||
| California Infrastructure & Economic Development
Bank, Refunding RB, Class B, AMT, Sustainability
Bonds, 12.00%, 01/01/65(a)(b) |
$ |
2,360 |
$ 1,510,400 |
| New Jersey — 142.5% |
| ||
| Corporate — 8.1% |
| ||
| New Jersey Economic Development Authority, ARB |
|
|
|
| Series A, AMT, 5.63%, 11/15/30 |
|
1,500 |
1,502,051 |
| Series B, AMT, 5.63%, 11/15/30 |
|
5,990 |
5,998,191 |
| New Jersey Economic Development Authority, RB |
|
|
|
| AMT, 4.00%, 08/01/59 |
|
1,000 |
834,167 |
| AMT, 5.00%, 08/01/59 |
|
4,440 |
4,460,210 |
| New Jersey Economic Development Authority, Refunding RB |
|
|
|
| 3.38%, 04/01/38 |
|
4,040 |
3,706,310 |
| 3.50%, 04/01/42 |
|
3,030 |
2,630,089 |
| AMT, 3.00%, 08/01/41 |
|
19,020 |
15,355,108 |
| AMT, 3.00%, 08/01/43 |
|
23,960 |
18,705,040 |
| |
|
|
53,191,166 |
| County/City/Special District/School District — 20.2% |
| ||
| Casino Reinvestment Development Authority, Inc., RB |
|
|
|
| Series B, (AGM), 5.00%, 11/01/43 |
|
680 |
711,024 |
| Series B, (AGM), 5.00%, 11/01/44 |
|
755 |
785,824 |
| Casino Reinvestment Development Authority, Inc., Refunding RB |
|
|
|
| Series A, (AGM), 5.00%, 11/01/41 |
|
1,000 |
1,053,036 |
| Series A, (AGM), 5.00%, 11/01/42 |
|
395 |
414,408 |
| City of Newark New Jersey, GOL, (SAW), 4.50%,
03/15/36 |
|
3,165 |
3,166,040 |
| City of Rahway, Refunding GOL, 4.00%, 07/20/27 |
|
6,800 |
6,877,925 |
| Clifton Board of Education, GO |
|
|
|
| 2.00%, 08/15/41 |
|
6,150 |
4,219,557 |
| 2.25%, 08/15/46 |
|
6,150 |
3,953,570 |
| County of Essex New Jersey, GO, Series B, 3.00%, 09/01/46 |
|
1,700 |
1,308,592 |
| County of Middlesex New Jersey, Refunding COP,
5.00%, 10/15/31 |
|
2,840 |
3,069,358 |
| Essex County Improvement Authority, Refunding RB |
|
|
|
| (NPFGC GTD), 5.50%, 10/01/27 |
|
250 |
258,395 |
| (NPFGC GTD), 5.50%, 10/01/29 |
|
8,505 |
9,219,456 |
| Essex County, GOL, 4.00%, 07/07/27 |
|
5,000 |
5,055,004 |
| Ewing Township Board of Education, GO, 4.00%, 07/15/39 |
|
2,320 |
2,233,969 |
| Hopewell Valley Regional School District, GO, 4.00%,
02/01/44 |
|
3,155 |
3,098,735 |
| Hudson County Improvement Authority, RB |
|
|
|
| 5.00%, 05/01/46 |
|
4,000 |
4,002,258 |
| Series A-1, (NPFGC GTD), 0.00%,
12/15/32(c) |
|
1,000 |
777,015 |
| Middlesex County Improvement Authority, RB, (GTD),
5.00%, 09/15/56 |
|
1,350 |
1,414,749 |
| New Jersey Economic Development Authority, RB, Series B, 6.50%, 04/01/31 |
|
2,555 |
2,557,636 |
| New Jersey Economic Development Authority,
Refunding SAB, 6.50%, 04/01/28 |
|
1,832 |
1,871,547 |
| Newark Board of Education, Refunding GO, Sustainability Bonds, (BAM), 3.00%, 07/15/42 |
|
1,500 |
1,204,324 |
| Rahway Valley Sewerage Authority, RB(c) |
|
|
|
| Series A, (NPFGC), 0.00%, 09/01/26 |
|
4,100 |
4,090,052 |
| Series A, (NPFGC), 0.00%, 09/01/28 |
|
6,600 |
6,178,362 |
| Security |
|
Par (000) |
Value |
| County/City/Special District/School District (continued) |
| ||
| Rahway Valley Sewerage Authority, RB(c) (continued) |
|
|
|
| Series A, (NPFGC), 0.00%, 09/01/29 |
$ |
9,650 |
$ 8,710,170
|
| Series A, (NPFGC), 0.00%, 09/01/31 |
|
6,000 |
5,006,725 |
| Series A, (NPFGC), 0.00%, 09/01/33 |
|
5,000 |
3,827,524 |
| Township of East Brunswick, Refunding GOL, 4.00%,
07/13/27 |
|
10,200 |
10,306,731 |
| Union County Improvement Authority, Refunding RB, 5.00%, 03/01/34 |
|
810 |
871,365 |
| Union County Utilities Authority, Refunding RB,
Series A, AMT, (GTD), 5.25%, 12/01/31 |
|
34,835 |
35,752,289 |
| |
|
|
131,995,640 |
| Education — 22.9% |
| ||
| Atlantic County Improvement Authority, RB, Series A, (AGM), 4.00%, 07/01/46 |
|
2,250 |
2,064,860 |
| Camden County Improvement Authority, RB,
Sustainability Bonds, 6.00%, 06/15/52 |
|
780 |
798,669 |
| Gloucester County Improvement Authority, RB |
|
|
|
| (BAM), 5.00%, 07/01/49 |
|
6,400 |
6,559,574 |
| (BAM), 5.00%, 07/01/54 |
|
7,450 |
7,573,492 |
| Gloucester County Improvement Authority, Refunding
RB |
|
|
|
| 5.00%, 07/01/43 |
|
1,725 |
1,841,197 |
| 5.00%, 07/01/44 |
|
725 |
770,029 |
| Middlesex County Improvement Authority, RB, 5.00%, 08/15/53 |
|
11,140 |
11,464,829 |
| Montclair State University, Inc., Refunding RB |
|
|
|
| Series A, (BAM), 5.25%, 07/01/51 |
|
1,175 |
1,233,739 |
| Series A, 5.25%, 07/01/56 |
|
1,750 |
1,815,937 |
| New Jersey Economic Development Authority, RB |
|
|
|
| Series A, 5.00%, 07/01/27(b) |
|
100 |
100,289 |
| Series A, 5.13%, 11/01/29(b) |
|
120 |
120,707 |
| Series A, 5.00%, 01/01/35 |
|
2,000 |
2,002,361 |
| Series A, 5.25%, 07/01/37(b) |
|
1,030 |
1,011,332 |
| Series A, 5.00%, 07/01/38 |
|
350 |
350,127 |
| Series A, 6.25%, 11/01/38(b) |
|
440 |
449,255 |
| Series A, 5.38%, 07/01/47(b) |
|
1,685 |
1,546,720 |
| Series A, 5.00%, 12/01/48 |
|
4,475 |
4,457,210 |
| Series A, 5.00%, 06/15/49(b) |
|
1,700 |
1,610,434 |
| Series A, 5.00%, 01/01/50 |
|
1,235 |
1,141,165 |
| Series A, 6.50%, 11/01/52(b) |
|
2,490 |
2,534,310 |
| Series A, 5.25%, 11/01/54(b) |
|
4,040 |
3,453,194 |
| New Jersey Economic Development Authority,
Refunding RB |
|
|
|
| (AGM), 5.00%, 06/01/37 |
|
6,270 |
6,329,164 |
| (AGM), 5.00%, 06/01/42 |
|
810 |
814,918 |
| Series A, 4.25%, 09/01/27(b) |
|
110 |
110,253 |
| Series A, 5.63%, 08/01/34(b) |
|
530 |
530,071 |
| Series A, 5.00%, 09/01/37(b) |
|
805 |
807,391 |
| Series A, 5.88%, 08/01/44(b) |
|
1,070 |
1,070,137 |
| Series A, 6.00%, 08/01/49(b) |
|
555 |
555,030 |
| Series A, 5.13%, 09/01/52(b) |
|
3,200 |
3,040,090 |
| New Jersey Educational Facilities Authority, RB |
|
|
|
| Series A, 4.00%, 07/01/47 |
|
2,100 |
1,856,986 |
| Series B, 5.25%, 03/01/54 |
|
30,470 |
31,832,504 |
| Series C, (AGM), 3.25%, 07/01/49 |
|
1,060 |
826,090 |
| New Jersey Educational Facilities Authority, Refunding RB |
|
|
|
| (BAM), 5.25%, 07/01/56 |
|
2,400 |
2,520,354 |
| Series D, 5.00%, 07/01/38 |
|
1,000 |
1,000,241 |
| Series D, 5.00%, 07/01/43 |
|
600 |
596,291 |
30
2026 BlackRock
Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Education (continued) |
| ||
| New Jersey Higher Education Student Assistance
Authority, RB |
|
|
|
| Series B, AMT, 4.00%, 12/01/44 |
$ |
1,160 |
$ 1,108,425
|
| Series B, AMT, 4.25%, 12/01/45 |
|
3,545 |
3,463,008 |
| Sub-Series C, AMT, 4.00%, 12/01/48 |
|
3,210 |
2,712,269 |
| Series C, AMT, Subordinate, 5.00%, 12/01/53 |
|
985 |
938,643 |
| Series C, AMT, Subordinate, 5.25%, 12/01/54 |
|
1,825 |
1,777,609 |
| New Jersey Higher Education Student Assistance
Authority, Refunding RB |
|
|
|
| AMT, 5.00%, 12/01/35 |
|
675 |
720,473 |
| AMT, 5.25%, 12/01/56 |
|
1,550 |
1,507,643 |
| Series 1-B, AMT, 4.50%, 12/01/45 |
|
5,550 |
5,491,850 |
| Series B, AMT, 3.00%, 12/01/32 |
|
4,635 |
4,538,572 |
| Series B, AMT, 4.00%, 12/01/41 |
|
1,920 |
1,845,968 |
| Sub-Series C, AMT, 3.63%, 12/01/49 |
|
1,925 |
1,509,284 |
| Series C, AMT, Subordinate, 5.00%, 12/01/52 |
|
18,705 |
17,974,261 |
| Passaic County Improvement Authority, RB |
|
|
|
| Series A, 5.00%, 01/01/55 |
|
700 |
642,875 |
| Series A, 5.00%, 01/01/60 |
|
500 |
451,754 |
| |
|
|
149,471,584 |
| Health — 12.9% |
| ||
| Middlesex County Improvement Authority, RB, (AMBAC), 5.50%, 09/01/30 |
|
315 |
315,558 |
| New Jersey Economic Development Authority,
Refunding RB |
|
|
|
| 5.00%, 01/01/34 |
|
1,230 |
1,250,755 |
| 5.00%, 01/01/39 |
|
1,980 |
1,991,505 |
| 5.00%, 01/01/49 |
|
5,500 |
5,181,522 |
| New Jersey Health Care Facilities Financing Authority,
RB |
|
|
|
| 5.00%, 07/01/42 |
|
2,000 |
2,016,083 |
| 2.38%, 07/01/46 |
|
3,735 |
2,426,401 |
| 4.00%, 07/01/47 |
|
5,555 |
5,083,709 |
| 3.00%, 07/01/49 |
|
3,650 |
2,688,429 |
| 3.00%, 07/01/51 |
|
16,100 |
11,548,120 |
| 4.00%, 07/01/51 |
|
10,000 |
9,216,989 |
| VRDN, 1.60%, 08/03/26(a) |
|
10,000 |
10,000,000 |
| Series D, VRDN, 1.80%, 08/07/26(a) |
|
12,895 |
12,895,000 |
| New Jersey Health Care Facilities Financing Authority, Refunding RB |
|
|
|
| 5.00%, 07/01/28 |
|
2,820 |
2,839,121 |
| 5.00%, 07/01/29 |
|
715 |
719,766 |
| 5.00%, 07/01/34 |
|
2,190 |
2,195,832 |
| 4.00%, 07/01/41 |
|
3,000 |
2,821,793 |
| Series A, 5.25%, 07/01/49 |
|
1,840 |
1,933,525 |
| Series A, 5.25%, 07/01/54 |
|
8,910 |
9,288,614 |
| |
|
|
84,412,722 |
| Housing — 7.5% |
| ||
| Middlesex County Improvement Authority, RB, M/F
Housing(b) |
|
|
|
| 7.13%, 06/01/61 |
|
700 |
710,797 |
| Class IA, 5.95%, 06/01/61 |
|
3,300 |
3,363,250 |
| Class IB, 5.00%, 06/01/36 |
|
1,000 |
1,001,452 |
| Class IC, 5.50%, 06/01/30 |
|
1,700 |
1,715,034 |
| New Jersey Housing & Mortgage Finance Agency, RB |
|
|
|
| 5.25%, 12/20/65 |
|
2,048 |
2,125,636 |
| Series A, (AGM), 5.00%, 05/01/27 |
|
425 |
426,683 |
| New Jersey Housing & Mortgage Finance Agency, RB,
M/F Housing |
|
|
|
| Series A, (FNMA), 4.55%, 05/01/41 |
|
1,560 |
1,536,255 |
| Security |
|
Par (000) |
Value |
| Housing (continued) |
| ||
| New Jersey Housing & Mortgage Finance Agency, RB,
M/F Housing (continued) |
|
|
|
| Series D-1, (GNMA), 5.05%, 09/01/67 |
$ |
1,525 |
$ 1,497,884
|
| Series A, Sustainability Bonds, (HUD SECT 8),
4.50%, 05/01/50 |
|
470 |
455,218 |
| Series A, Sustainability Bonds, 4.90%, 11/01/50 |
|
4,580 |
4,588,635 |
| Series A, Sustainability Bonds, 4.95%, 11/01/55 |
|
2,170 |
2,162,165 |
| Series D-1, Sustainability Bonds, (FHLMC, FNMA, GNMA), 5.10%, 11/01/45 |
|
4,010 |
4,115,944 |
| Series D-1, Sustainability Bonds, (FHLMC, FNMA,
GNMA), 5.20%, 11/01/55 |
|
6,000 |
6,085,151 |
| Series E-1, Sustainability Bonds, (HUD SECT 8), 4.50%, 05/01/50 |
|
750 |
731,643 |
| New Jersey Housing & Mortgage Finance Agency, RB,
S/F Housing |
|
|
|
| Series H, Sustainability Bonds, 2.15%, 10/01/41 |
|
2,995 |
2,166,876 |
| Series K, Sustainability Bonds, 4.70%, 10/01/50 |
|
2,180 |
2,141,910 |
| New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing |
|
|
|
| Series A, (HUD SECT 8), 2.45%, 11/01/45 |
|
860 |
593,464 |
| Series A, 4.00%, 11/01/48 |
|
675 |
606,196 |
| Series A, (HUD SECT 8), 2.55%, 11/01/50 |
|
780 |
511,924 |
| Series A, 4.10%, 11/01/53 |
|
400 |
348,451 |
| Series D, AMT, 4.25%, 11/01/37 |
|
2,940 |
2,872,522 |
| Series D, AMT, 4.35%, 11/01/42 |
|
1,000 |
922,627 |
| Series A, Sustainability Bonds, (HUD SECT 8),
2.65%, 11/01/46 |
|
1,150 |
806,659 |
| Series A, Sustainability Bonds, (HUD SECT 8), 2.70%, 11/01/51 |
|
1,150 |
758,019 |
| New Jersey Housing & Mortgage Finance Agency,
Refunding RB, S/F Housing, Series A, 3.75%,
10/01/35 |
|
5,295 |
5,190,966 |
| Newark Housing Authority, RB, M/F Housing, Series A, 5.00%, 12/01/30 |
|
2,000 |
2,002,758 |
| |
|
|
49,438,119 |
| State — 43.0% |
| ||
| Garden State Preservation Trust, RB |
|
|
|
| Series A, (AGM), 5.75%, 11/01/28 |
|
11,365 |
11,783,475 |
| Series B, (AGM), 0.00%, 11/01/26(c) |
|
6,000 |
5,952,186 |
| Series B, (AGM), 0.00%, 11/01/27(c)
|
|
4,000 |
3,839,197 |
| Series B, (AGM), 0.00%, 11/01/28(c) |
|
4,540 |
4,205,992 |
| New Jersey Economic Development Authority, RB |
|
|
|
| 5.00%, 06/15/43 |
|
10,690 |
10,953,380 |
| 4.00%, 11/01/44 |
|
4,715 |
4,353,959 |
| 5.00%, 06/15/49 |
|
2,700 |
2,738,362 |
| Class A, 5.25%, 11/01/47 |
|
11,300 |
11,776,663 |
| Class A, 5.00%, 11/01/52 |
|
6,000 |
6,084,946 |
| Series A, 5.00%, 06/15/42 |
|
2,000 |
2,025,969 |
| Series B, 5.00%, 06/15/35 |
|
3,750 |
3,898,313 |
| Series B, 5.00%, 06/15/43 |
|
3,470 |
3,555,494 |
| Series EEE, 5.00%, 06/15/48 |
|
2,850 |
2,892,619 |
| New Jersey Economic Development Authority, Refunding RB |
|
|
|
| 4.00%, 07/01/46 |
|
5,025 |
4,763,427 |
| Series N-1, (NPFGC), 5.50%, 09/01/27 |
|
1,000 |
1,030,177 |
| Sub-Series A, 4.00%, 07/01/32 |
|
5,000 |
4,991,637 |
| Sub-Series A, 5.00%, 07/01/33 |
|
5,050 |
5,093,483 |
| Sub-Series A, 4.00%, 07/01/34 |
|
9,420 |
9,271,705 |
| New Jersey Educational Facilities Authority, RB, Series A, 5.25%, 09/01/53 |
|
4,545 |
4,697,996 |
Schedule of Investments 31
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| State (continued) |
| ||
| New Jersey Transportation Trust Fund Authority, RB |
|
|
|
| 5.00%, 06/15/42 |
$ |
785 |
$ 820,598
|
| 5.25%, 06/15/46 |
|
385 |
403,012 |
| 4.50%, 06/15/49 |
|
2,985 |
2,902,395 |
| Series AA, 5.25%, 06/15/34 |
|
1,305 |
1,306,328 |
| Series AA, 4.00%, 06/15/36 |
|
2,565 |
2,564,791 |
| Series AA, 5.25%, 06/15/41 |
|
5,000 |
5,003,177 |
| Series AA, 4.00%, 06/15/45 |
|
7,325 |
6,736,820 |
| Series AA, 5.00%, 06/15/45 |
|
5,000 |
5,119,109 |
| Series AA, 4.00%, 06/15/50 |
|
10,535 |
9,601,334 |
| Series AA, 5.00%, 06/15/50 |
|
1,000 |
1,022,748 |
| Series AA, 5.25%, 06/15/50 |
|
4,445 |
4,646,679 |
| Series AA, 5.00%, 06/15/55 |
|
3,500 |
3,540,543 |
| Series BB, 4.00%, 06/15/44 |
|
5,100 |
4,707,647 |
| Series BB, 4.00%, 06/15/50 |
|
9,100 |
8,293,511 |
| Series BB, 5.25%, 06/15/50 |
|
19,575 |
20,303,998 |
| Series C, (AGM), 0.00%, 12/15/32(c) |
|
14,050 |
11,242,447 |
| Series C, (AMBAC), 0.00%,
12/15/35(c) |
|
8,300 |
5,751,233 |
| Series C, (AMBAC), 0.00%, 12/15/36(c) |
|
7,210 |
4,740,313 |
| Series CC, 5.25%, 06/15/55 |
|
15,190 |
15,696,296 |
| Series S, 5.00%, 06/15/33 |
|
2,450 |
2,542,247 |
| Series S, Class BB, 5.00%, 06/15/36 |
|
3,750 |
3,992,572 |
| Series S, Class BB, 4.00%, 06/15/37 |
|
1,550 |
1,537,619 |
| Series S, Class BB, 4.00%, 06/15/40 |
|
6,000 |
5,722,716 |
| Series S, Class BB, 4.00%, 06/15/50 |
|
8,290 |
7,555,297 |
| New Jersey Transportation Trust Fund Authority, RB, CAB, Series A, 0.00%, 12/15/35(c)
|
|
6,000 |
4,157,518 |
| New Jersey Transportation Trust Fund Authority,
Refunding RB |
|
|
|
| 5.00%, 12/15/26 |
|
3,130 |
3,153,390 |
| 4.00%, 12/15/39 |
|
3,630 |
3,478,973 |
| Series A, 4.00%, 06/15/36 |
|
3,695 |
3,694,699 |
| Series A, 5.25%, 06/15/41 |
|
4,000 |
4,283,132 |
| South Jersey Port Corp., ARB |
|
|
|
| Series A, 5.00%, 01/01/49 |
|
4,150 |
4,152,059 |
| Series B, AMT, 5.00%, 01/01/42 |
|
12,870 |
12,929,117 |
| State of New Jersey, GO, 5.00%, 06/01/38 |
|
5,085 |
5,338,746 |
| |
|
|
280,850,044 |
| Tobacco — 4.7% |
| ||
| Tobacco Settlement Financing Corp., Refunding RB |
|
|
|
| Series A, 5.00%, 06/01/35 |
|
4,695 |
4,802,175 |
| Series A, 5.00%, 06/01/46 |
|
7,465 |
7,355,819 |
| Sub-Series B, 5.00%, 06/01/46 |
|
12,295 |
11,871,157 |
| Series A, AMT, Intermediate Lien, 5.25%, 06/01/46 |
|
6,500 |
6,513,373 |
| |
|
|
30,542,524 |
| Transportation — 21.2% |
| ||
| New Jersey Economic Development Authority, ARB,
AMT, 6.38%, 01/01/35(b) |
|
2,795 |
2,941,831 |
| New Jersey Economic Development Authority, RB |
|
|
|
| AMT, (AGM), 5.00%, 01/01/31 |
|
1,000 |
1,014,209 |
| AMT, 5.13%, 01/01/34 |
|
2,290 |
2,296,721 |
| AMT, 5.38%, 01/01/43 |
|
23,510 |
23,529,205 |
| AMT, 5.63%, 01/01/52 |
|
1,000 |
1,000,617 |
| New Jersey Economic Development Authority,
Refunding ARB |
|
|
|
| AMT, 5.00%, 10/01/37 |
|
8,200 |
8,271,237 |
| AMT, 5.00%, 10/01/47 |
|
7,015 |
7,018,221 |
| New Jersey Transportation Trust Fund Authority, RB |
|
|
|
| 4.50%, 06/15/49(d) |
|
1,615 |
1,682,849 |
| Series A, 5.00%, 06/15/30 |
|
4,250 |
4,254,678 |
| Security |
|
Par (000) |
Value |
| Transportation (continued) |
| ||
| New Jersey Turnpike Authority, RB |
|
|
|
| Series A, 5.00%, 01/01/34 |
$ |
2,500 |
$ 2,517,373
|
| Series A, 4.00%, 01/01/42 |
|
4,000 |
3,891,600 |
| Series A, 5.25%, 01/01/50 |
|
19,685 |
20,894,403 |
| Series A, 4.00%, 01/01/51 |
|
7,390 |
6,833,574 |
| Series A-2, 5.00%, 01/01/54(a)
|
|
6,800 |
7,492,109 |
| Series B, 5.25%, 01/01/52 |
|
11,705 |
12,225,720 |
| New Jersey Turnpike Authority, Refunding RB |
|
|
|
| Series A, (AGM), 5.25%, 01/01/29 |
|
4,000 |
4,243,378 |
| Series A, (BHAC-CR AGM), 5.25%, 01/01/29 |
|
500 |
530,422 |
| Series A, (AGM), 5.25%, 01/01/30 |
|
4,000 |
4,319,126 |
| Series A, 4.00%, 01/01/39 |
|
7,175 |
7,089,137 |
| Series C, 5.00%, 01/01/45 |
|
3,500 |
3,684,851 |
| South Jersey Transportation Authority, RB |
|
|
|
| 5.25%, 11/01/52 |
|
6,000 |
6,165,202 |
| (BAM), 5.25%, 11/01/52 |
|
700 |
721,181 |
| Series A, (AGM-CR), 4.00%, 11/01/50 |
|
4,260 |
3,924,262 |
| Series A, Subordinate, (BAM), 4.00%, 11/01/50 |
|
2,000 |
1,834,107 |
| |
|
|
138,376,013 |
| Utilities — 2.0% |
| ||
| New Jersey Infrastructure Bank, RB, Sustainable
Bonds, 5.00%, 09/01/26 |
|
2,570 |
2,574,743 |
| Passaic Valley Sewerage Commission, Refunding RB |
|
|
|
| Series J, (AGM), 3.00%, 12/01/40 |
|
2,060 |
1,708,886 |
| Series J, (AGM), 3.00%, 12/01/41 |
|
2,110 |
1,727,687 |
| Series J, (AGM), 3.00%, 12/01/42 |
|
2,155 |
1,744,124 |
| Series J, (AGM), 3.00%, 12/01/43 |
|
2,205 |
1,760,032 |
| Series J, (AGM), 3.00%, 12/01/44 |
|
2,255 |
1,773,316 |
| Series J, (AGM), 3.00%, 12/01/45 |
|
2,305 |
1,780,482 |
| |
|
|
13,069,270 |
| Total Municipal Bonds in New Jersey |
931,347,082 | ||
| New York — 9.5% |
| ||
| County/City/Special District/School District — 0.5% |
| ||
| New York City Transitional Finance Authority Future
Tax Secured Revenue, RB, Series E, Subordinate,
5.00%, 11/01/53 |
|
3,500 |
3,551,381 |
| State — 1.3% |
| ||
| New York State Dormitory Authority, Refunding RB,
Series A, 5.00%, 03/15/50 |
|
8,030 |
8,259,925 |
| Transportation — 7.7% |
| ||
| Port Authority of New York & New Jersey, ARB |
|
|
|
| Series 93, 6.13%, 06/01/94 |
|
6,000 |
6,009,421 |
| AMT, 5.00%, 11/01/30 |
|
2,000 |
2,097,692 |
| AMT, 5.00%, 11/01/33 |
|
1,030 |
1,073,364 |
| AMT, 4.00%, 11/01/37 |
|
1,715 |
1,676,925 |
| AMT, 4.00%, 09/01/38 |
|
1,085 |
1,037,071 |
| Series 218, AMT, 5.00%, 11/01/32 |
|
3,105 |
3,238,758 |
| Series 218, AMT, 4.00%, 11/01/47 |
|
835 |
739,293 |
| Series 221, AMT, 4.00%, 07/15/40 |
|
1,500 |
1,404,983 |
| Series 221, AMT, 4.00%, 07/15/45 |
|
1,975 |
1,788,220 |
| Series 221, AMT, 4.00%, 07/15/50 |
|
4,415 |
3,817,458 |
| Port Authority of New York & New Jersey, Refunding ARB |
|
|
|
| AMT, 5.00%, 01/15/52 |
|
11,395 |
11,478,542 |
| Series 206, AMT, 5.00%, 11/15/47 |
|
1,500 |
1,507,307 |
| Series 223, AMT, 4.00%, 07/15/41 |
|
2,530 |
2,350,931 |
32
2026 BlackRock
Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Transportation (continued) |
| ||
| Port Authority of New York & New Jersey, Refunding
ARB (continued) |
|
|
|
| Series 238, AMT, 5.00%, 07/15/39 |
$ |
1,670 |
$ 1,751,169
|
| Port Authority of New York & New Jersey, Refunding
RB, Series 242, AMT, 5.00%, 12/01/53 |
|
10,205 |
10,279,987 |
| |
|
|
50,251,121 |
| Total Municipal Bonds in New York |
62,062,427 | ||
| Puerto Rico — 4.5% |
| ||
| State — 4.5% |
| ||
| Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue, RB |
|
|
|
| Series A-1, Restructured, (FHLMC, FNMA, GNMA),
4.75%, 07/01/53 |
|
1,336 |
1,268,388 |
| Series A-1, Restructured, 5.00%, 07/01/58 |
|
18,536 |
17,809,354 |
| Series A-2, Restructured, 4.78%, 07/01/58 |
|
2,906 |
2,746,917 |
| Series A-2, Restructured, 4.33%, 07/01/40 |
|
2,264 |
2,210,557 |
| Series B-1, Restructured, 4.75%, 07/01/53 |
|
333 |
316,148 |
| Series B-2, Restructured, 4.78%, 07/01/58 |
|
618 |
581,403 |
| Puerto Rico Sales Tax Financing Corp., Sales Tax
Revenue, RB, CAB, Series A-1, Restructured,
0.00%, 07/01/46(c) |
|
11,521 |
4,192,273 |
| Total Municipal Bonds in Puerto Rico |
29,125,040 | ||
| Wisconsin — 1.2% |
| ||
| Education — 0.1% |
| ||
| Public Finance Authority, RB, 5.00%, 07/01/55(b) |
|
785 |
698,310 |
| Transportation — 1.1% |
| ||
| Public Finance Authority, RB |
|
|
|
| Series A, AMT, Senior Lien, 5.50%, 07/01/44 |
|
3,600 |
3,669,350 |
| Series A, AMT, Senior Lien, 5.75%, 07/01/49 |
|
3,500 |
3,605,981 |
| |
|
|
7,275,331 |
| Total Municipal Bonds in Wisconsin |
7,973,641 | ||
| Total Municipal Bonds — 157.9% (Cost: $1,050,081,627) |
1,032,018,590 | ||
| Municipal Bonds Transferred to Tender Option Bond Trusts(e) | |||
| New Jersey — 3.0% | |||
| Housing — 1.2% |
| ||
| New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Sustainability Bonds, Series M, 5.05%, 10/01/45 |
|
7,816 |
7,967,614 |
| Utilities — 1.8% |
| ||
| Union County Utilities Authority, Refunding RB, Series A, 5.00%, 06/15/41 |
|
11,685 |
11,690,358 |
| Total Municipal Bonds in New Jersey |
19,657,972 | ||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 3.0% (Cost: $19,501,816) |
19,657,972 | ||
| Security |
|
Shares |
Value |
| Warrants | |||
| Construction & Engineering — 0.1% |
| ||
| Brightline West, (Expires 11/26/35, Strike Price USD 5.00)(f)(g) |
|
111,540 |
$ 223,080 |
| Total Warrants — 0.1% (Cost: $ — ) |
223,080 | ||
| Total Long-Term Investments — 161.0% (Cost: $1,069,583,443) |
1,051,899,642 | ||
| Short-Term Securities | |||
| Money Market Funds — 3.7% |
| ||
| BlackRock Liquidity Funds, MuniCash, Institutional
Shares, 2.19%(h)(i) |
|
24,452,020 |
24,454,465 |
| Total Short-Term Securities — 3.7% (Cost: $24,454,315) |
24,454,465 | ||
| Total Investments — 164.7% (Cost: $1,094,037,758) |
1,076,354,107 | ||
| Other Assets Less Liabilities — 0.8% |
5,473,517 | ||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (1.8)% |
(11,773,454 ) | ||
| VRDP Shares at Liquidation Value, Net of Deferred Offering Costs —
(63.7)% |
(416,525,064 ) | ||
| Net Assets Applicable to Common Shares — 100.0% |
$ 653,529,106 | ||
| (a) |
Variable rate security. Interest rate resets periodically. The rate shown is the effective
interest rate as of period end. Security description also includes the reference rate and
spread if published and available. |
| (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) |
Zero-coupon bond. |
| (d) |
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. |
| (e) |
Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates
received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4
of the Notes to Financial Statements for details. |
| (f) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the
fair value hierarchy. |
| (g) |
Non-income producing security. |
| (h) |
Affiliate of the Fund. |
| (i) |
Annualized 7-day yield as of period end. |
For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
Schedule of Investments 33
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 31, 2026 for purposes of Section 2(a)(3) of
the Investment Company Act of 1940, as amended, were as
follows:
| Affiliated Issuer |
Value at 07/31/25 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 07/31/26 |
Shares Held at 07/31/26 |
Income |
Capital Gain Distributions from Underlying Funds |
| BlackRock Liquidity Funds, MuniCash, Institutional Shares |
$ 22,323,845 |
$ 2,130,620
(a) |
$ — |
$ — |
$ — |
$ 24,454,465 |
24,452,020 |
$ 579,004 |
$ — |
| (a) |
Represents net amount purchased (sold). |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of
financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial
instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Assets |
|
|
|
|
| Investments |
|
|
|
|
| Long-Term Investments |
|
|
|
|
| Municipal Bonds |
$ —
|
$ 1,032,018,590
|
$ —
|
$ 1,032,018,590
|
| Municipal Bonds Transferred to Tender Option Bond Trusts |
— |
19,657,972 |
— |
19,657,972 |
| Warrants |
— |
— |
223,080 |
223,080 |
| Short-Term Securities |
|
|
|
|
| Money Market Funds |
24,454,465 |
— |
— |
24,454,465 |
| |
$24,454,465 |
$1,051,676,562 |
$223,080 |
$1,076,354,107 |
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Liabilities |
|
|
|
|
| TOB Trust Certificates |
$—
|
$(11,706,105
) |
$—
|
$(11,706,105
) |
| VRDP Shares at Liquidation Value |
— |
(417,100,000 ) |
— |
(417,100,000 ) |
| |
$— |
$(428,806,105 ) |
$— |
$(428,806,105 ) |
See notes to financial
statements.
34
2026 BlackRock Annual Report to Shareholders
Schedule of Investments
July 31, 2026
BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Municipal Bonds | |||
| Alabama — 5.7% |
| ||
| Corporate — 5.7% |
|
||
| Black Belt Energy Gas District, RB |
|
|
|
| Series A, 5.00%, 12/01/34 |
$ |
6,500 |
$ 6,718,665
|
| Series D, 5.00%, 03/01/55(a) |
|
2,880 |
2,983,505 |
| Energy Southeast A Cooperative District, RB, Series A, 5.00%, 11/01/35 |
|
3,500 |
3,600,347 |
| Southeast Alabama Gas Supply District, Refunding RB,
Series B, 5.00%, 06/01/49(a) |
|
2,500 |
2,594,154 |
| Southeast Energy Authority A Cooperative District, RB, Series H, 5.00%, 11/01/35 |
|
4,000 |
4,139,044 |
| Total Municipal Bonds in Alabama |
20,035,715 | ||
| California(a)
— 1.2% |
|
||
| Corporate — 1.0% |
| ||
| California Community Choice Financing Authority, RB, Series B, Sustainability Bonds, 5.00%, 01/01/55 |
|
3,400 |
3,469,421 |
| Transportation — 0.2% |
| ||
| California Infrastructure & Economic Development Bank, Refunding RB, Class B, AMT, Sustainability Bonds, 12.00%, 01/01/65(b) |
|
1,275 |
816,000 |
| Total Municipal Bonds in California |
4,285,421 | ||
| Georgia — 1.1% |
|
||
| Housing — 1.1% |
| ||
| Georgia Housing & Finance Authority, RB, S/F Housing, Series G, (FNMA, GNMA), 4.90%, 12/01/50 |
|
4,000 |
4,002,005 |
| Michigan — 150.0% |
| ||
| County/City/Special District/School District — 46.9% |
|
||
| Avondale School District, GO, (Q-SBLF), 4.13%,
11/01/46 |
|
905 |
858,062 |
| Berkley School District, GO, Series II, (Q-SBLF), 5.00%, 05/01/49 |
|
7,475 |
7,682,688 |
| Byron Center Public Schools, GO |
|
|
|
| Series I, (Q-SBLF), 5.00%, 05/01/51 |
|
2,000 |
2,053,175 |
| Series II, (Q-SBLF), 5.25%, 05/01/53 |
|
5,000 |
5,134,708 |
| Cedar Springs Public School District, GO |
|
|
|
| Series II, (Q-SBLF), 5.00%, 05/01/46 |
|
1,100 |
1,141,629 |
| Series II, (Q-SBLF), 4.50%, 05/01/49 |
|
1,950 |
1,886,781 |
| City of Grand Rapids Michigan, GOL, 5.00%, 04/01/50 |
|
3,000 |
3,070,366 |
| City of Lansing Michigan, Refunding GO |
|
|
|
| Series B, (AGM), 4.13%, 06/01/48 |
|
5,325 |
4,983,385 |
| Series B, (AGM), 5.00%, 06/01/48 |
|
9,290 |
9,555,346 |
| Clarkston Community Schools, GO |
|
|
|
| Series I, (Q-SBLF), 5.00%, 05/01/45 |
|
6,360 |
6,638,940 |
| Series I, (Q-SBLF), 5.00%, 05/01/47 |
|
2,000 |
2,066,111 |
| Coopersville Area Public Schools, GO |
|
|
|
| Series I, (Q-SBLF), 4.00%, 05/01/48 |
|
295 |
265,250 |
| Series I, (Q-SBLF), 4.13%, 05/01/52 |
|
600 |
533,474 |
| County of Kalamazoo Michigan, GOL, 4.13%, 05/01/47 |
|
1,375 |
1,287,516 |
| Gerald R Ford International Airport Authority, ARB |
|
|
|
| AMT, (GTD), 5.00%, 01/01/46 |
|
2,250 |
2,297,755 |
| AMT, (GTD), 5.00%, 01/01/49 |
|
2,000 |
2,030,441 |
| AMT, (GTD), 5.00%, 01/01/51 |
|
5,435 |
5,478,676 |
| AMT, (GTD), 5.00%, 01/01/54 |
|
2,000 |
2,013,039 |
| Grand Rapids Public Schools, GO, (AGM), 5.00%,
05/01/49 |
|
2,000 |
2,038,573 |
| Gull Lake Community School District, GO, Series I, (Q- SBLF), 5.00%, 05/01/48 |
|
4,000 |
4,038,161 |
| Security |
|
Par (000) |
Value |
| County/City/Special District/School District (continued) |
|
||
| Holly Area School District, GO, Series I, (Q-SBLF),
5.25%, 05/01/48 |
$ |
8,235 |
$ 8,570,827
|
| Hudsonville Public Schools, Refunding GO |
|
|
|
| (Q-SBLF), 5.00%, 05/01/46 |
|
2,500 |
2,600,542 |
| (Q-SBLF), 5.00%, 05/01/49 |
|
2,375 |
2,437,850 |
| Karegnondi Water Authority, Refunding RB, 5.00%,
11/01/41 |
|
2,200 |
2,225,263 |
| Kentwood Public Schools, GO |
|
|
|
| (AGM), 5.00%, 05/01/56 |
|
3,000 |
3,049,376 |
| Series II, (AGM), 5.00%, 05/01/46 |
|
6,705 |
6,938,929 |
| Series II, (AGM), 5.00%, 05/01/49 |
|
1,295 |
1,324,737 |
| L’Anse Creuse Public Schools, GO, Series I, (Q-SBLF), 5.00%, 05/01/49 |
|
9,205 |
9,461,053 |
| Michigan Finance Authority, RB, 2nd Lien, (BAM-TCRS),
4.00%, 11/01/50 |
|
1,500 |
1,328,515 |
| Northwestern Regional Airport Authority, ARB |
|
|
|
| AMT, (GTD), 5.25%, 01/01/51 |
|
3,000 |
3,087,724 |
| AMT, (GTD), 5.25%, 01/01/56 |
|
1,725 |
1,763,788 |
| Novi Community School District, GO, Series I, 5.00%,
05/01/44 |
|
1,175 |
1,211,241 |
| Okemos Public Schools, GO, Series II, (Q-SBLF), 5.00%, 05/01/49 |
|
2,750 |
2,822,797 |
| Rockford Public Schools, GO |
|
|
|
| Series II, (Q-SBLF), 5.00%, 05/01/46 |
|
1,505 |
1,560,175 |
| Series II, (Q-SBLF), 5.00%, 05/01/49 |
|
2,000 |
2,048,256 |
| South Lyon Community Schools, GO, Series I, 5.00%, 11/01/49 |
|
1,000 |
1,023,070 |
| Southfield Public Schools, GO |
|
|
|
| (Q-SBLF), 5.25%, 05/01/50 |
|
1,250 |
1,302,383 |
| (Q-SBLF), 5.25%, 05/01/55 |
|
2,500 |
2,584,772 |
| Three Rivers Community Schools, GO, Series II, (Q- SBLF), 4.25%, 05/01/49 |
|
7,000 |
6,568,076 |
| Troy School District, GO |
|
|
|
| (Q-SBLF), 5.00%, 05/01/47 |
|
3,360 |
3,486,941 |
| (Q-SBLF), 5.00%, 05/01/52 |
|
17,975 |
18,368,897 |
| Walled Lake Consolidated School District, GO |
|
|
|
| (Q-SBLF), 5.00%, 05/01/47 |
|
1,000 |
1,026,698 |
| (Q-SBLF), 5.00%, 05/01/49 |
|
2,500 |
2,551,208 |
| (Q-SBLF), 5.00%, 05/01/50 |
|
1,500 |
1,537,267 |
| Wayne-Westland Community Schools, GO |
|
|
|
| (Q-SBLF), 5.00%, 11/01/44 |
|
2,360 |
2,449,779 |
| (Q-SBLF), 4.50%, 11/01/46 |
|
5,250 |
5,237,053 |
| West Ottawa Public Schools, GO, (AGM), 4.00%,
11/01/46 |
|
1,000 |
938,168 |
| Williamston Community Schools School District, GO, (Q-SBLF), 5.00%, 05/01/51 |
|
2,250 |
2,315,700 |
| |
|
|
164,875,161 |
| Education — 19.1% |
|
||
| Eastern Michigan University, Refunding RB, (BAM),
5.25%, 03/01/50 |
|
2,000 |
2,069,062 |
| Ferris State University, Refunding RB, Series A, (AGM), 5.00%, 10/01/49 |
|
2,000 |
2,057,360 |
| Michigan Finance Authority, Refunding RB |
|
|
|
| 5.00%, 12/01/36 |
|
1,550 |
1,547,120 |
| 5.00%, 12/01/40 |
|
2,900 |
2,780,119 |
| 5.00%, 12/01/45 |
|
3,750 |
3,520,564 |
| 4.00%, 09/01/50 |
|
1,550 |
1,286,057 |
| Michigan State University, Refunding RB |
|
|
|
| Series A, 5.00%, 08/15/49 |
|
4,835 |
4,992,808 |
| Series A, 5.25%, 02/15/50 |
|
10,000 |
10,538,304 |
| Series A, 5.25%, 08/15/54 |
|
4,525 |
4,705,027 |
Schedule of Investments 35
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Education (continued) |
|
||
| Michigan Technological University, RB |
|
|
|
| Series A, 5.00%, 10/01/45 |
$ |
1,800 |
$ 1,800,880
|
| Series A, (AGM), 5.25%, 10/01/52 |
|
1,675 |
1,711,452 |
| Series C, (AGM), 5.25%, 10/01/48 |
|
2,500 |
2,601,470 |
| Northern Michigan University, RB, Series A, 5.50%,
06/01/50 |
|
1,000 |
1,062,181 |
| Oakland University, Refunding RB |
|
|
|
| Series A, 5.00%, 03/01/45 |
|
935 |
971,643 |
| Series A, 5.00%, 03/01/46 |
|
1,500 |
1,547,757 |
| Series A, 5.00%, 03/01/47 |
|
975 |
999,135 |
| Wayne State University, RB, Series A, 4.00%, 11/15/48 |
|
8,385 |
7,280,118 |
| Western Michigan University, RB |
|
|
|
| Series A, (AGM), 5.00%, 11/15/51 |
|
1,815 |
1,835,114 |
| Series A, (AGM), 5.00%, 11/15/53 |
|
5,345 |
5,391,673 |
| Western Michigan University, Refunding RB |
|
|
|
| 5.00%, 11/15/49 |
|
5,650 |
5,718,178 |
| Series A, (AGM), 5.25%, 11/15/49 |
|
2,500 |
2,599,571 |
| |
|
|
67,015,593 |
| Health — 15.0% |
|
||
| Kentwood Economic Development Corp., Refunding RB,
4.00%, 11/15/43 |
|
750 |
657,910 |
| Michigan Finance Authority, RB, Series A, 5.00%, 11/15/48 |
|
6,365 |
6,431,162 |
| Michigan Finance Authority, Refunding RB |
|
|
|
| 4.00%, 04/15/42 |
|
1,500 |
1,414,170 |
| 4.00%, 11/15/46 |
|
8,500 |
7,432,415 |
| Class A, 5.00%, 12/01/42 |
|
2,165 |
2,190,899 |
| Class A, 5.00%, 12/01/42(c) |
|
85 |
87,498 |
| Series 2, 4.00%, 03/01/51 |
|
4,000 |
3,411,584 |
| Series A, 4.00%, 12/01/49 |
|
4,500 |
3,882,634 |
| Series S, 5.00%, 05/15/38 |
|
4,890 |
4,902,997 |
| Michigan State Hospital Finance Authority, RB |
|
|
|
| Series A, 5.00%, 08/15/44 |
|
2,700 |
2,813,146 |
| Series A, 5.00%, 08/15/45 |
|
2,500 |
2,596,281 |
| Series A, 5.00%, 08/15/46 |
|
2,500 |
2,585,193 |
| Michigan State Hospital Finance Authority, Refunding
RB, 5.00%, 11/15/47 |
|
10,785 |
10,961,998 |
| Michigan Strategic Fund, RB, 5.00%, 11/15/42 |
|
3,500 |
3,467,180 |
| |
|
|
52,835,067 |
| Housing — 10.0% |
|
||
| Michigan State Housing Development Authority, RB, M/F
Housing |
|
|
|
| (GNMA), 4.75%, 04/20/37 |
|
2,235 |
2,236,222 |
| Series A, 4.45%, 10/01/34 |
|
1,000 |
1,000,035 |
| Series A, 4.63%, 10/01/39 |
|
3,490 |
3,490,249 |
| Series A, 4.75%, 10/01/44 |
|
5,000 |
5,002,167 |
| Series A, 5.00%, 10/01/48 |
|
7,000 |
7,100,085 |
| Series A, 2.55%, 10/01/51 |
|
5,175 |
3,287,150 |
| Series A-1, 5.25%, 10/01/50 |
|
5,000 |
5,091,345 |
| Michigan State Housing Development Authority, RB, S/F
Housing |
|
|
|
| Series A, Sustainability Bonds, 4.85%, 12/01/45 |
|
2,500 |
2,522,375 |
| Series A, Sustainability Bonds, 6.00%, 06/01/54 |
|
5,060 |
5,416,423 |
| |
|
|
35,146,051 |
| State — 24.8% |
| ||
| Michigan Finance Authority, RB |
|
|
|
| Series F, 5.00%, 04/01/31 |
|
1,000 |
1,001,474 |
| Series F, 5.25%, 10/01/41 |
|
8,595 |
8,604,780 |
| Michigan State Building Authority, Refunding RB |
|
|
|
| 4.00%, 10/15/49 |
|
7,000 |
6,287,072 |
| Security |
|
Par (000) |
Value |
| State (continued) |
|
||
| Michigan State Building Authority, Refunding
RB (continued) |
|
|
|
| Series I, 4.00%, 10/15/46 |
$ |
3,175 |
$ 2,931,795
|
| Series I, 5.00%, 10/15/47 |
|
6,000 |
6,183,804 |
| Series I, 5.25%, 10/15/50 |
|
6,500 |
6,833,789 |
| Michigan Strategic Fund, RB |
|
|
|
| AMT, (AGM), 4.25%, 12/31/38 |
|
10,000 |
9,691,707 |
| AMT, 5.00%, 12/31/43 |
|
15,000 |
15,081,448 |
| AMT, (AGM), 4.50%, 06/30/48 |
|
3,000 |
2,737,552 |
| State of Michigan Trunk Line Revenue, RB |
|
|
|
| 4.00%, 11/15/46 |
|
2,000 |
1,828,793 |
| 5.00%, 11/15/46 |
|
3,870 |
4,059,808 |
| 5.25%, 11/15/49 |
|
18,000 |
18,929,101 |
| Series B, 5.00%, 11/15/45 |
|
2,830 |
2,926,750 |
| |
|
|
87,097,873 |
| Tobacco — 3.1% |
| ||
| Michigan Finance Authority, Refunding RB |
|
|
|
| Series A, Class 1, 4.00%, 06/01/39 |
|
1,250 |
1,230,878 |
| Series A, Class 1, 4.00%, 06/01/49 |
|
5,750 |
4,852,175 |
| Michigan Finance Authority, Refunding RB, CAB,
Series B-2, Class 2, 0.00%, 06/01/65(d) |
|
49,500 |
4,948,074 |
| |
|
|
11,031,127 |
| Transportation — 6.6% |
| ||
| Wayne County Airport Authority, ARB |
|
|
|
| Series A, 5.00%, 12/01/46 |
|
6,500 |
6,663,743 |
| Series A, (AGM), 5.25%, 12/01/48 |
|
5,545 |
5,793,591 |
| Series A, 5.50%, 12/01/50 |
|
2,000 |
2,127,120 |
| AMT, 5.00%, 12/01/48 |
|
2,000 |
1,998,976 |
| Series B, AMT, 5.00%, 12/01/42 |
|
1,000 |
1,005,901 |
| Series B, AMT, 5.00%, 12/01/47 |
|
1,250 |
1,251,127 |
| Series B, AMT, 5.75%, 12/01/50 |
|
1,280 |
1,368,353 |
| Wayne County Airport Authority, Refunding RB, AMT, 5.00%, 12/01/32 |
|
2,940 |
3,027,421 |
| |
|
|
23,236,232 |
| Utilities — 24.5% |
|
||
| City of Detroit Michigan Water Supply System Revenue,
RB, Series A, Senior Lien, (NPFGC), 5.00%, 07/01/34 |
|
10 |
10,018 |
| Great Lakes Water Authority Sewage Disposal System Revenue, RB |
|
|
|
| Series A, Senior Lien, 5.25%, 07/01/47 |
|
8,000 |
8,361,481 |
| Series A, Senior Lien, 5.25%, 07/01/52 |
|
2,000 |
2,065,091 |
| Series C, Senior Lien, 5.25%, 07/01/48 |
|
4,685 |
4,917,745 |
| Series C, Senior Lien, 5.25%, 07/01/53 |
|
3,250 |
3,373,241 |
| Great Lakes Water Authority Water Supply System
Revenue, RB |
|
|
|
| Series A, Senior Lien, 5.25%, 07/01/52 |
|
4,610 |
4,760,035 |
| Series B, Senior Lien, 5.25%, 07/01/48 |
|
11,750 |
12,333,726 |
| Series B, Senior Lien, 5.25%, 07/01/53 |
|
3,000 |
3,113,761 |
| Series C, Senior Lien, 5.25%, 07/01/50 |
|
3,500 |
3,672,907 |
| Series C, Senior Lien, 5.25%, 07/01/55 |
|
2,000 |
2,080,964 |
| Lansing Board of Water & Light, Refunding RB |
|
|
|
| Series A, 5.00%, 07/01/48 |
|
20,355 |
20,614,300 |
| Series A, 5.00%, 07/01/49 |
|
11,275 |
11,527,851 |
| Michigan Finance Authority, RB, Sustainability Bonds, 5.50%, 02/28/49 |
|
8,985 |
9,320,125 |
| |
|
|
86,151,245 |
| Total Municipal Bonds in Michigan |
527,388,349 | ||
36
2026 BlackRock
Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| New York — 1.6% |
|
||
| State — 0.7% |
| ||
| New York State Thruway Authority, RB, Series A, 5.00%, 09/15/55 |
$ |
2,500 |
$ 2,543,268 |
| Transportation — 0.9% |
| ||
| New York Transportation Development Corp., Refunding RB, Series A, AMT, Sustainability Bonds, (AGM), 5.25%, 12/31/54 |
|
3,110 |
3,158,319 |
| Total Municipal Bonds in New York |
5,701,587 | ||
| Puerto Rico — 2.5% |
|
||
| State — 2.5% |
| ||
| Commonwealth of Puerto Rico, GO, Series A-1, Restructured, 5.75%, 07/01/31 |
|
1,061 |
1,144,896 |
| Puerto Rico Sales Tax Financing Corp., Sales Tax
Revenue, RB |
|
|
|
| Series A-1, Restructured, 5.00%, 07/01/58 |
|
1,375 |
1,321,097 |
| Series A-2, Restructured, 4.78%, 07/01/58 |
|
103 |
97,361 |
| Series A-2, Restructured, 4.33%, 07/01/40 |
|
80 |
78,112 |
| Series B-1, Restructured, 4.75%, 07/01/53 |
|
451 |
428,176 |
| Series B-1, Restructured, 5.00%, 07/01/58 |
|
3,976 |
3,778,897 |
| Series B-2, Restructured, 4.78%, 07/01/58 |
|
597 |
561,647 |
| Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(d) |
|
3,928 |
1,429,325 |
| Total Municipal Bonds in Puerto Rico |
8,839,511 | ||
| Texas — 0.8% |
|
||
| Corporate — 0.8% |
| ||
| Texas Municipal Gas Acquisition & Supply Corp. V, RB, 5.00%, 01/01/55(a) |
|
2,540 |
2,632,483 |
| Total Municipal Bonds — 162.9% (Cost: $580,364,771) |
572,885,071 | ||
| |
|
Shares |
|
| Warrants | |||
| Construction & Engineering — 0.0% |
| ||
| Brightline West, (Expires 11/26/35, Strike Price USD 5.00)(e)(f) |
|
60,248 |
120,496 |
| Total Warrants — 0.0% (Cost: $ — ) |
120,496 | ||
| Total Long-Term Investments — 162.9% (Cost: $580,364,771) |
573,005,567 | ||
| Security |
|
Shares |
Value |
| Short-Term Securities | |||
| Money Market Funds — 1.7% |
| ||
| BlackRock Liquidity Funds, MuniCash, Institutional Shares, 2.19%(g)(h) |
|
5,983,924 |
$ 5,984,523 |
| Total Short-Term Securities — 1.7% (Cost: $5,984,470) |
5,984,523 | ||
| Total Investments — 164.6% (Cost: $586,349,241) |
578,990,090 | ||
| Other Assets Less Liabilities — 1.3% |
4,254,389 | ||
| VRDP Shares at Liquidation Value, Net of Deferred Offering Costs —
(65.9)% |
(231,587,439 ) | ||
| Net Assets Applicable to Common Shares — 100.0% |
$ 351,657,040 | ||
| (a) |
Variable rate security. Interest rate resets periodically. The rate shown is the effective
interest rate as of period end. Security description also includes the reference rate and
spread if published and available. |
| (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) |
U.S. Government securities held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (d) |
Zero-coupon bond. |
| (e) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the
fair value hierarchy. |
| (f) |
Non-income producing security. |
| (g) |
Affiliate of the Fund. |
| (h) |
Annualized 7-day yield as of period end. |
For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
Schedule of Investments 37
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 31, 2026 for purposes of Section 2(a)(3) of
the Investment Company Act of 1940, as amended, were as
follows:
| Affiliated Issuer |
Value at 07/31/25 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 07/31/26 |
Shares Held at 07/31/26 |
Income |
Capital Gain Distributions from Underlying Funds |
| BlackRock Liquidity Funds, MuniCash, Institutional Shares |
$ 8,499,551 |
$ — |
$ (2,515,028 )(a) |
$ 162 |
$ (162 ) |
$ 5,984,523 |
5,983,924 |
$ 97,020 |
$ — |
| (a) |
Represents net amount purchased (sold). |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of
financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial
instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Assets |
|
|
|
|
| Investments |
|
|
|
|
| Long-Term Investments |
|
|
|
|
| Municipal Bonds |
$ —
|
$ 572,885,071
|
$ —
|
$ 572,885,071
|
| Warrants |
— |
— |
120,496 |
120,496 |
| Short-Term Securities |
|
|
|
|
| Money Market Funds |
5,984,523 |
— |
— |
5,984,523 |
| |
$5,984,523 |
$572,885,071 |
$120,496 |
$578,990,090 |
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Liabilities |
|
|
|
|
| VRDP Shares at Liquidation Value |
$— |
$(231,900,000 ) |
$— |
$(231,900,000 ) |
| |
$— |
$(231,900,000 ) |
$— |
$(231,900,000 ) |
See notes to financial
statements.
38
2026 BlackRock Annual Report to Shareholders
Schedule of Investments
July 31, 2026
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Municipal Bonds | |||
| Alabama — 1.9% |
| ||
| Corporate — 1.9% |
| ||
| Black Belt Energy Gas District, RB |
|
|
|
| Series A, 5.00%, 12/01/34 |
$ |
7,330 |
$ 7,576,587
|
| Series D, 5.00%, 03/01/55(a) |
|
3,140 |
3,252,849 |
| Lower Alabama Gas District, RB, Series A, 5.00%, 09/01/46 |
|
3,750 |
3,802,140 |
| Southeast Energy Authority A Cooperative District, RB(a) |
|
|
|
| Series A, 5.00%, 01/01/56 |
|
1,410 |
1,415,323 |
| Series B, 5.25%, 03/01/55 |
|
3,070 |
3,129,557 |
| Total Municipal Bonds in Alabama |
19,176,456 | ||
| California — 0.3% |
| ||
| Transportation — 0.3% |
| ||
| California Infrastructure & Economic Development Bank,
Refunding RB, Class B, AMT, Sustainability Bonds,
12.00%, 01/01/65(a)(b) |
|
3,725 |
2,384,000 |
| Georgia — 1.5% |
| ||
| Corporate — 1.5% |
| ||
| Main Street Natural Gas, Inc., RB |
|
|
|
| Series A, 5.00%, 05/15/43 |
|
10,000 |
10,041,394 |
| Series C, 5.00%, 12/01/54(a) |
|
5,000 |
5,197,150 |
| Total Municipal Bonds in Georgia |
15,238,544 | ||
| Guam — 0.2% |
| ||
| Utilities — 0.2% |
| ||
| Guam Power Authority, Refunding RB, Series A, 5.00%, 10/01/41 |
|
1,750 |
1,788,443 |
| Kentucky — 1.7% |
| ||
| Corporate — 1.7% |
| ||
| Kentucky Public Energy Authority, Refunding RB,
Series B, 5.00%, 01/01/55(a) |
|
16,145 |
16,811,929 |
| New York — 130.9% |
| ||
| Corporate — 6.6% |
| ||
| Build NYC Resource Corp., Refunding RB, AMT, 5.00%, 01/01/35(b) |
|
365 |
365,405 |
| New York Energy Finance Development Corp., RB,
5.00%, 07/01/56 |
|
30,250 |
30,756,864 |
| New York Liberty Development Corp., RB, 5.50%, 10/01/37 |
|
2,500 |
2,868,885 |
| New York Liberty Development Corp., Refunding RB,
5.25%, 10/01/35 |
|
11,610 |
13,038,019 |
| New York Transportation Development Corp., ARB, AMT, 5.63%, 04/01/40 |
|
6,455 |
6,841,485 |
| New York Transportation Development Corp., RB |
|
|
|
| AMT, 5.00%, 10/01/35 |
|
2,910 |
3,019,842 |
| AMT, 5.00%, 10/01/40 |
|
9,050 |
9,222,790 |
| |
|
|
66,113,290 |
| County/City/Special District/School District — 24.3% |
| ||
| Battery Park City Authority, RB |
|
|
|
| Series A, Sustainability Bonds, 5.00%, 11/01/41 |
|
2,000 |
2,169,433 |
| Series A, Sustainability Bonds, 5.00%, 11/01/42 |
|
3,890 |
4,205,410 |
| Series A, Sustainability Bonds, 5.00%, 11/01/43 |
|
4,720 |
5,087,273 |
| Series A, Sustainability Bonds, 5.00%, 11/01/48 |
|
6,540 |
6,854,340 |
| Battery Park City Authority, Refunding RB, Sustainability
Bonds, 5.25%, 11/01/55 |
|
10,000 |
10,583,449 |
| Build NYC Resource Corp., RB |
|
|
|
| Class A, 5.38%, 12/01/46 |
|
1,000 |
1,065,319 |
| Security |
|
Par (000) |
Value |
| County/City/Special District/School District (continued) |
| ||
| Build NYC Resource Corp., RB (continued) |
|
|
|
| Class A, 5.50%, 12/01/51 |
$ |
1,450 |
$ 1,510,946
|
| City of New York, GO |
|
|
|
| Series A-1, 5.00%, 08/01/47 |
|
7,265 |
7,392,817 |
| Series A-1, 5.00%, 08/01/53 |
|
2,390 |
2,418,860 |
| Series D, 5.38%, 06/01/32 |
|
25 |
25,047 |
| Series F-1, 5.00%, 03/01/44 |
|
2,000 |
2,058,729 |
| Series F-1, 5.00%, 04/01/45 |
|
4,950 |
5,008,209 |
| Series F-1, 4.00%, 03/01/47 |
|
5,000 |
4,484,057 |
| Series G, 5.25%, 02/01/53 |
|
2,500 |
2,588,514 |
| Series G-1, 5.25%, 02/01/50 |
|
2,500 |
2,601,883 |
| County of Nassau New York, GOL |
|
|
|
| Series A, 4.00%, 04/01/49 |
|
8,265 |
7,590,463 |
| Series A, 4.25%, 04/01/52 |
|
5,000 |
4,710,595 |
| Series A, 4.00%, 04/01/54 |
|
3,300 |
2,962,277 |
| County of Nassau New York, Refunding GOL |
|
|
|
| Series A, (AGM), 4.00%, 04/01/49 |
|
4,235 |
3,866,115 |
| Series B, (AGM), 5.00%, 04/01/49 |
|
5,000 |
5,138,302 |
| Hudson Yards Infrastructure Corp., Refunding RB |
|
|
|
| Series A, 5.00%, 02/15/42 |
|
18,785 |
18,900,717 |
| Series A, (AGM), 4.00%, 02/15/47 |
|
5,185 |
4,673,880 |
| New York City Industrial Development Agency,
RB(c) |
|
|
|
| (AGM), 0.00%, 03/01/35 |
|
500 |
352,699 |
| (AGM), 0.00%, 03/01/39 |
|
7,380 |
4,147,773 |
| (AGM), 0.00%, 03/01/42 |
|
3,710 |
1,737,855 |
| (AGM), 0.00%, 03/01/43 |
|
4,330 |
1,923,690 |
| (AGM), 0.00%, 03/01/45 |
|
2,000 |
794,996 |
| New York City Industrial Development Agency, Refunding RB, (AGM), 4.00%, 03/01/45 |
|
7,995 |
7,315,488 |
| New York City Transitional Finance Authority Future Tax
Secured Revenue, RB |
|
|
|
| Series D, 5.50%, 05/01/52 |
|
2,500 |
2,650,010 |
| Sub-Series E-1, 5.00%, 02/01/43 |
|
2,945 |
2,958,942 |
| Subordinate, 5.50%, 11/01/54 |
|
4,375 |
4,678,674 |
| Series A-1, Subordinate, 5.00%, 08/01/41 |
|
1,000 |
1,051,539 |
| Series A-1, Subordinate, 4.00%, 08/01/48 |
|
2,000 |
1,832,623 |
| Series A-1, Subordinate, 5.50%, 05/01/50 |
|
5,000 |
5,351,947 |
| Series B, Subordinate, 4.38%, 05/01/53 |
|
7,000 |
6,594,055 |
| Series C-S, Subordinate, 5.00%, 05/01/50 |
|
3,275 |
3,341,735 |
| Series F-1, Subordinate, 5.00%, 02/01/44 |
|
785 |
815,747 |
| Series F-1, Subordinate, 4.00%, 02/01/51 |
|
20,215 |
18,261,639 |
| Series F-1, Subordinate, 5.25%, 02/01/52 |
|
2,500 |
2,601,280 |
| Series H-1, Subordinate, 5.25%, 11/01/48 |
|
8,000 |
8,386,814 |
| Series H-1, Subordinate, 5.50%, 11/01/51 |
|
1,045 |
1,111,623 |
| New York Convention Center Development Corp., RB,
CAB(c) |
|
|
|
| Series B, Sub Lien, 0.00%, 11/15/42 |
|
4,825 |
2,180,364 |
| Series B, Sub Lien, 0.00%, 11/15/47 |
|
12,340 |
4,181,661 |
| Series B, Sub Lien, 0.00%, 11/15/48 |
|
6,215 |
1,984,489 |
| Series B, Sub Lien, (AGM-CR), 0.00%, 11/15/55 |
|
6,485 |
1,437,518 |
| Series B, Sub Lien, (AGM-CR), 0.00%, 11/15/56 |
|
10,590 |
2,221,361 |
| New York Liberty Development Corp., Refunding RB |
|
|
|
| Class 2, 5.38%, 11/15/40(b) |
|
680 |
680,806 |
| Series A, Sustainability Bonds, 3.00%, 11/15/51 |
|
6,265 |
4,303,751 |
| Saratoga County Capital Resource Corp., RB, 5.00%, 07/01/47 |
|
2,600 |
2,700,346 |
| Schenectady County Capital Resource Corp., RB,
Series A, 5.50%, 01/01/57 |
|
4,250 |
4,407,744 |
Schedule of Investments 39
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| County/City/Special District/School District (continued) |
| ||
| Triborough Bridge & Tunnel Authority Sales Tax
Revenue, RB |
|
|
|
| Class A, 4.00%, 05/15/57 |
$ |
2,900 |
$ 2,502,029
|
| Series A, 4.25%, 05/15/58 |
|
12,655 |
11,593,963 |
| Series A, 4.50%, 05/15/63 |
|
4,290 |
4,051,255 |
| Series A-1, 4.13%, 05/15/64 |
|
20,455 |
17,730,854 |
| |
|
|
241,781,905 |
| Education — 8.8% |
| ||
| Albany Capital Resource Corp., Refunding
RB(d)(e) |
|
|
|
| 4.00%, 07/01/41 |
|
1,249 |
24,979 |
| 4.00%, 07/01/51 |
|
1,294 |
25,881 |
| Amherst Development Corp., Refunding RB |
|
|
|
| 5.00%, 10/01/43 |
|
535 |
506,379 |
| 5.00%, 10/01/48 |
|
410 |
375,587 |
| Buffalo & Erie County Industrial Land Development Corp., Refunding RB, Series A, 5.00%, 06/01/35 |
|
345 |
346,888 |
| Build NYC Resource Corp., RB(b) |
|
|
|
| 5.00%, 09/01/59 |
|
3,875 |
3,383,035 |
| Series A, 5.13%, 05/01/38 |
|
660 |
654,384 |
| Series A, 5.50%, 05/01/48 |
|
270 |
261,574 |
| Sustainability Bonds, 5.75%, 06/01/52 |
|
1,000 |
962,290 |
| Build NYC Resource Corp., Refunding RB |
|
|
|
| 5.00%, 08/01/47 |
|
1,500 |
1,384,532 |
| Series A, 5.00%, 06/01/38 |
|
750 |
750,535 |
| Series A, 5.00%, 06/01/43 |
|
975 |
975,405 |
| County of Cattaraugus New York, RB |
|
|
|
| 5.00%, 05/01/34 |
|
170 |
170,144 |
| 5.00%, 05/01/39 |
|
125 |
125,046 |
| Dobbs Ferry Local Development Corp., RB |
|
|
|
| 5.00%, 07/01/39 |
|
1,750 |
1,721,816 |
| 5.00%, 07/01/44 |
|
500 |
493,070 |
| Dutchess County Local Development Corp., RB |
|
|
|
| 5.00%, 07/01/43 |
|
1,710 |
1,746,199 |
| 4.00%, 07/01/49 |
|
3,000 |
2,578,355 |
| Dutchess County Local Development Corp., Refunding
RB, 4.00%, 07/01/49 |
|
5,000 |
4,455,420 |
| Monroe County Industrial Development Corp., RB, Series A, 5.00%, 07/01/53 |
|
4,190 |
4,308,730 |
| Monroe County Industrial Development Corp.,
Refunding RB, Series A, 4.00%, 07/01/50 |
|
12,670 |
11,530,959 |
| New York State Dormitory Authority, RB |
|
|
|
| Series 1, (AMBAC), 5.50%, 07/01/40 |
|
9,520 |
10,712,534 |
| Series A, 5.00%, 07/01/46 |
|
900 |
900,806 |
| Sustainability Bonds, 5.00%, 07/01/50 |
|
4,000 |
4,066,815 |
| Series A, Sustainability Bonds, 5.00%, 07/01/48 |
|
1,465 |
1,508,661 |
| Series A, Sustainability Bonds, 5.25%, 07/01/50 |
|
1,275 |
1,337,124 |
| Series A, Sustainability Bonds, 5.25%, 07/01/55 |
|
3,250 |
3,376,005 |
| New York State Dormitory Authority, Refunding RB |
|
|
|
| Series A, 5.00%, 07/01/35 |
|
5,855 |
5,862,633 |
| Series A, 4.00%, 07/01/47 |
|
1,285 |
1,082,574 |
| Series A, 4.00%, 07/01/49 |
|
1,080 |
902,329 |
| Series A, 5.00%, 07/01/50 |
|
7,565 |
7,241,831 |
| Onondaga County Trust for Cultural Resources, Refunding RB |
|
|
|
| 5.00%, 05/01/40 |
|
1,065 |
1,067,157 |
| 5.00%, 12/01/43 |
|
8,000 |
8,283,251 |
| 4.00%, 12/01/47 |
|
4,000 |
3,681,728 |
| Security |
|
Par (000) |
Value |
| Education (continued) |
| ||
| Schenectady County Capital Resource Corp., Refunding
RB, 5.00%, 01/01/47 |
$ |
5 |
$ 4,904
|
| Troy Capital Resource Corp., Refunding RB, 5.00%, 09/01/39 |
|
1,000 |
1,027,871 |
| |
|
|
87,837,431 |
| Health — 10.4% |
| ||
| Albany Capital Resource Corp., Refunding RB, Series A,
5.50%, 05/01/55 |
|
9,000 |
9,460,995 |
| Brookhaven Local Development Corp., Refunding RB, 5.00%, 10/01/50 |
|
7,250 |
7,314,877 |
| Build NYC Resource Corp., RB |
|
|
|
| Class A, 5.25%, 07/01/37 |
|
3,755 |
3,579,857 |
| Class A, 5.50%, 07/01/47 |
|
2,305 |
2,144,307 |
| Genesee County Funding Corp., Refunding RB, Series A, 5.25%, 12/01/52 |
|
3,815 |
3,823,314 |
| Monroe County Industrial Development Corp., RB |
|
|
|
| Series A, 5.00%, 12/01/32 |
|
1,250 |
1,251,131 |
| Series A, 5.00%, 12/01/37 |
|
1,530 |
1,530,223 |
| Monroe County Industrial Development Corp., Refunding RB, 4.00%, 12/01/46 |
|
9,615 |
8,166,782 |
| New York State Dormitory Authority, RB |
|
|
|
| Series 1, 5.25%, 07/01/54 |
|
2,600 |
2,735,246 |
| Series 1-A, 4.00%, 07/01/51 |
|
14,750 |
13,052,465 |
| Series A, 4.00%, 07/01/50 |
|
2,705 |
2,343,556 |
| Series A, 5.13%, 11/15/55 |
|
800 |
797,490 |
| Series A-1, (AGM), 5.50%, 07/01/55 |
|
5,000 |
5,267,837 |
| New York State Dormitory Authority, Refunding RB |
|
|
|
| 4.00%, 07/01/45 |
|
840 |
675,746 |
| 4.25%, 05/01/52 |
|
11,000 |
9,750,503 |
| 5.00%, 05/01/52 |
|
12,995 |
13,134,716 |
| Class A, 5.25%, 05/01/54 |
|
5,200 |
5,328,705 |
| Series 1, 4.00%, 07/01/47 |
|
8,000 |
7,361,563 |
| Oneida County Local Development Corp., RB, Class A,
(AGM), 4.00%, 12/01/46 |
|
1,100 |
990,537 |
| Suffolk County Economic Development Corp., RB, Series C, 5.00%, 07/01/32 |
|
1,615 |
1,616,171 |
| Tompkins County Development Corp., Refunding RB,
5.00%, 07/01/44 |
|
110 |
110,032 |
| Westchester County Local Development Corp., Refunding RB(b) |
|
|
|
| 5.00%, 07/01/41 |
|
1,530 |
1,519,100 |
| 5.00%, 07/01/56 |
|
1,715 |
1,524,838 |
| |
|
|
103,479,991 |
| Housing — 13.5% |
| ||
| New York City Housing Development Corp., RB, M/F
Housing |
|
|
|
| Sustainability Bonds, 4.90%, 11/01/50 |
|
7,500 |
7,507,781 |
| Sustainability Bonds, (HUD SECT 8), 4.80%,
02/01/53 |
|
5,000 |
4,924,129 |
| Sustainability Bonds, (HUD SECT 8), 5.00%, 05/01/56 |
|
12,455 |
12,457,962 |
| Series A, Sustainability Bonds, 4.75%, 11/01/48 |
|
1,065 |
1,048,714 |
| Series A, Sustainability Bonds, (FHLMC, FNMA, GNMA), 4.70%, 08/01/54 |
|
8,000 |
7,662,650 |
| Series A, Sustainability Bonds, (FHLMC), 5.20%,
02/01/55 |
|
5,645 |
5,657,466 |
| Series A-1, Sustainability Bonds, 4.65%, 11/01/49 |
|
2,000 |
1,945,234 |
| Series A-1, Sustainability Bonds, 4.80%, 11/01/55 |
|
9,435 |
9,029,938 |
| Series B-1, Sustainability Bonds, 5.25%, 11/01/55 |
|
750 |
754,036 |
| Series B-1, Class A, Sustainability Bonds, (HUD
SECT 8), 4.65%, 11/01/49 |
|
3,000 |
2,917,851 |
40
2026 BlackRock
Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Housing (continued) |
| ||
| New York City Housing Development Corp., RB, M/F
Housing (continued) |
|
|
|
| Series C, Sustainability Bonds, (FHLMC), 4.95%, 02/01/55 |
$ |
8,605 |
$ 8,596,308
|
| Series C-1, Sustainability Bonds, 5.05%, 11/01/50 |
|
2,000 |
2,021,437 |
| Series D, Sustainability Bonds, (HUD SECT 8), 5.00%, 05/01/56 |
|
13,420 |
13,425,930 |
| Series D-1, Sustainability Bonds, (HUD SECT 8),
4.50%, 11/01/54 |
|
1,995 |
1,881,138 |
| Series D-2, Sustainability Bonds, (HUD SECT 8), 4.45%, 11/01/49 |
|
2,900 |
2,815,060 |
| Series D-2, Sustainability Bonds, (HUD SECT 8),
4.50%, 11/01/54 |
|
2,500 |
2,357,316 |
| Series E-1, Sustainability Bonds, 4.85%, 11/01/53 |
|
10,805 |
10,703,933 |
| Series F-1A, Sustainability Bonds, 4.55%, 11/01/54 |
|
6,595 |
6,268,889 |
| Series F-1A, Sustainability Bonds, 5.00%, 11/01/54 |
|
3,820 |
3,829,097 |
| Sustainable Bonds, 4.85%, 11/01/51 |
|
7,500 |
7,312,074 |
| New York State Housing Finance Agency, RB, M/F Housing |
|
|
|
| Series B-1, Sustainability Bonds, (SONYMA), 4.85%,
11/01/48 |
|
3,850 |
3,874,130 |
| Series C-1, Sustainability Bonds, (SONYMA), 4.65%, 11/01/48 |
|
1,545 |
1,524,301 |
| Series D-1, Sustainable Bonds, (SONYMA), 4.95%,
05/01/56 |
|
5,625 |
5,594,689 |
| State of New York Mortgage Agency Homeowner Mortgage Revenue, RB, S/F Housing |
|
|
|
| Series 255, Sustainability Bonds, (SONYMA), 4.70%,
10/01/43 |
|
4,085 |
4,129,205 |
| Series 261, Sustainability Bonds, (SONYMA), 4.55%, 10/01/49 |
|
6,205 |
6,061,449 |
| |
|
|
134,300,717 |
| State — 9.9% |
| ||
| Empire State Development Corp., RB, Series A, 5.00%,
03/15/46 |
|
10,000 |
10,442,986 |
| Empire State Development Corp., Refunding RB, 5.00%, 03/15/47 |
|
4,500 |
4,636,013 |
| New York City Transitional Finance Authority Building
Aid Revenue, RB |
|
|
|
| Series S-1, (SAW), 5.00%, 07/15/43 |
|
3,000 |
3,213,417 |
| Series S-1, Subordinate, (SAW), 4.00%, 07/15/45 |
|
1,290 |
1,182,157 |
| New York State Dormitory Authority, RB |
|
|
|
| Series A, 5.00%, 03/15/44 |
|
10,500 |
10,678,147 |
| Series A, 5.00%, 03/15/45 |
|
6,000 |
6,090,504 |
| Series A, 5.00%, 03/15/52 |
|
11,395 |
11,614,928 |
| New York State Dormitory Authority, Refunding RB |
|
|
|
| Series A, 5.00%, 03/15/46 |
|
3,585 |
3,720,734 |
| Series A, 4.00%, 03/15/54 |
|
18,340 |
16,030,242 |
| Series A, 5.25%, 03/15/56 |
|
10,000 |
10,417,678 |
| Series D, 5.00%, 02/15/48 |
|
2,090 |
2,135,239 |
| New York State Thruway Authority, RB, Series A, 5.00%,
03/15/49 |
|
10,000 |
10,310,231 |
| New York State Thruway Authority, Refunding RB, Series A, 5.00%, 03/15/48 |
|
8,365 |
8,586,274 |
| |
|
|
99,058,550 |
| Tobacco — 2.4% |
| ||
| Chautauqua Tobacco Asset Securitization Corp.,
Refunding RB |
|
|
|
| 4.75%, 06/01/39 |
|
4,465 |
3,704,852 |
| 5.00%, 06/01/48 |
|
2,050 |
1,574,297 |
| Security |
|
Par (000) |
Value |
| Tobacco (continued) |
| ||
| New York Counties Tobacco Trust IV, Refunding RB,
Series A, 6.25%, 06/01/41(b) |
$ |
1,277 |
$ 1,215,187
|
| New York Counties Tobacco Trust VI, Refunding RB |
|
|
|
| Series A-2B, 5.00%, 06/01/45 |
|
590 |
508,753 |
| Series A-2B, 5.00%, 06/01/51 |
|
4,465 |
3,226,621 |
| Series C, 4.00%, 06/01/51 |
|
2,250 |
1,563,211 |
| Niagara Tobacco Asset Securitization Corp., Refunding RB, 5.25%, 05/15/40 |
|
4,380 |
4,240,257 |
| TSASC, Inc., Refunding RB, Series A, 5.00%, 06/01/41 |
|
2,810 |
2,823,069 |
| Westchester Tobacco Asset Securitization Corp., Refunding RB |
|
|
|
| Sub-Series C, 4.00%, 06/01/42 |
|
4,865 |
3,971,760 |
| Sub-Series C, 5.13%, 06/01/51 |
|
1,225 |
1,053,357 |
| |
|
|
23,881,364 |
| Transportation — 36.3% |
| ||
| Buffalo & Fort Erie Public Bridge Authority, RB, 5.00%,
01/01/47 |
|
2,815 |
2,821,503 |
| Metropolitan Transportation Authority Dedicated Tax Fund, Refunding RB, Series B-2, Sustainability Bonds, 5.00%, 11/15/48 |
|
3,250 |
3,360,587 |
| Metropolitan Transportation Authority, RB |
|
|
|
| Series A-1, Sustainability Bonds, 4.00%, 11/15/45 |
|
1,125 |
1,004,808 |
| Series A-1, Sustainability Bonds, 4.00%, 11/15/46 |
|
2,000 |
1,762,239 |
| Series D-2, Sustainability Bonds, 4.00%, 11/15/48 |
|
4,795 |
4,158,638 |
| Series D-3, Sustainability Bonds, 4.00%, 11/15/49 |
|
8,190 |
7,047,847 |
| Metropolitan Transportation Authority, Refunding RB |
|
|
|
| Series B, 5.00%, 11/15/37 |
|
1,000 |
1,003,101 |
| Series A, Sustainability Bonds, 5.50%, 11/15/47 |
|
10,000 |
10,600,871 |
| Series A, Sustainability Bonds, 5.25%, 11/15/49 |
|
5,210 |
5,369,859 |
| Series A-1, Sustainability Bonds, (AGM), 4.00%, 11/15/54 |
|
5,310 |
4,479,303 |
| Series A-1, Sustainability Bonds, 5.25%, 11/15/57 |
|
1,000 |
1,000,854 |
| Series C-1, Sustainability Bonds, (BAM-TCRS), 4.75%, 11/15/45 |
|
8,345 |
8,441,673 |
| Sub-Series C-1, Sustainability Bonds, 5.00%,
11/15/34 |
|
1,500 |
1,539,085 |
| MTA Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56 |
|
16,225 |
16,106,864 |
| New York City Industrial Development Agency,
Refunding RB, Series A, 5.00%, 07/01/28 |
|
1,095 |
1,095,544 |
| New York Liberty Development Corp., Refunding RB, Series 1, 3.00%, 02/15/42 |
|
3,050 |
2,486,523 |
| New York State Thruway Authority, RB |
|
|
|
| Series R, 5.00%, 01/01/50 |
|
2,000 |
2,058,770 |
| Series R, 5.00%, 01/01/54 |
|
5,945 |
6,079,254 |
| New York State Thruway Authority, Refunding RB |
|
|
|
| Series A, 5.25%, 01/01/56 |
|
3,000 |
3,119,740 |
| Series P, 5.00%, 01/01/49 |
|
2,500 |
2,563,163 |
| Series B, Subordinate, 4.00%, 01/01/50 |
|
4,605 |
4,008,325 |
| New York Transportation Development Corp., ARB |
|
|
|
| AMT, 5.00%, 12/01/34 |
|
9,075 |
9,619,566 |
| AMT, 5.00%, 12/01/35 |
|
10,000 |
10,546,783 |
| AMT, 5.00%, 12/01/36 |
|
3,715 |
3,896,658 |
| AMT, 5.00%, 12/01/39 |
|
950 |
980,419 |
| AMT, 5.00%, 12/01/40 |
|
1,040 |
1,069,518 |
| AMT, 5.00%, 12/01/41 |
|
1,000 |
1,025,845 |
| Series A, AMT, (AGM-CR), 4.00%, 07/01/41 |
|
1,100 |
1,015,348 |
| Series A, AMT, 5.00%, 07/01/46 |
|
16,495 |
16,211,265 |
| Series A, AMT, 5.25%, 01/01/50 |
|
23,970 |
23,911,643 |
| AMT, Sustainability Bonds, 6.00%, 06/30/50 |
|
2,000 |
2,116,122 |
| AMT, Sustainability Bonds, 6.00%, 06/30/55 |
|
5,565 |
5,842,262 |
Schedule of Investments 41
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Transportation (continued) |
| ||
| New York Transportation Development Corp., RB |
|
|
|
| AMT, 4.00%, 10/31/41 |
$ |
1,375 |
$ 1,287,171
|
| AMT, 4.00%, 10/31/46 |
|
5,325 |
4,770,247 |
| AMT, Sustainability Bonds, 6.00%, 06/30/54 |
|
7,000 |
7,220,982 |
| AMT, Sustainability Bonds, (AGM), 5.13%, 06/30/60 |
|
2,000 |
1,987,232 |
| AMT, Sustainability Bonds, (AGM), 5.25%, 06/30/60 |
|
20,000 |
20,131,618 |
| AMT, Sustainability Bonds, 5.50%, 06/30/60 |
|
11,990 |
12,075,044 |
| New York Transportation Development Corp., Refunding RB |
|
|
|
| Series A, AMT, 5.00%, 12/01/37 |
|
2,350 |
2,413,831 |
| Series A, AMT, Sustainability Bonds, 5.50%, 12/31/60 |
|
8,275 |
8,371,812 |
| New York Transportation Development Corp., Refunding
RB, CAB, Series B, AMT, (AGM), 5.00%, 12/31/54(f) |
|
5,000 |
3,266,496 |
| Port Authority of New York & New Jersey, ARB |
|
|
|
| Series 221, AMT, 4.00%, 07/15/45 |
|
1,105 |
1,000,498 |
| Series 221, AMT, 4.00%, 07/15/55 |
|
2,470 |
2,081,128 |
| Port Authority of New York & New Jersey, Refunding
ARB |
|
|
|
| Series 240, 5.00%, 07/15/53 |
|
5,000 |
5,136,284 |
| AMT, 5.00%, 01/15/47 |
|
8,000 |
8,158,930 |
| Series 202, AMT, 5.00%, 10/15/34 |
|
5,000 |
5,051,133 |
| Series 206, AMT, 5.00%, 11/15/47 |
|
10,000 |
10,048,715 |
| Series 231, AMT, 5.50%, 08/01/52 |
|
3,060 |
3,195,400 |
| Port Authority of New York & New Jersey, Refunding RB |
|
|
|
| Series 250, 5.25%, 10/15/55 |
|
5,000 |
5,259,768 |
| Series 226, AMT, 5.00%, 10/15/39 |
|
3,105 |
3,211,491 |
| Series 242, AMT, 5.00%, 12/01/39 |
|
2,000 |
2,101,745 |
| Series 242, AMT, 5.00%, 12/01/48 |
|
5,000 |
5,088,867 |
| Series 242, AMT, 5.00%, 12/01/53 |
|
5,580 |
5,621,002 |
| Triborough Bridge & Tunnel Authority, RB |
|
|
|
| Series A, 5.00%, 11/15/47 |
|
8,335 |
8,609,586 |
| Series A, 4.00%, 11/15/52 |
|
10,000 |
8,964,002 |
| Series A, 5.25%, 12/01/54 |
|
12,450 |
12,900,212 |
| Series A, 4.00%, 11/15/56 |
|
1,555 |
1,358,638 |
| Series A, 5.50%, 11/15/57 |
|
8,350 |
8,758,059 |
| Series A-1, 5.25%, 11/15/54 |
|
2,000 |
2,090,395 |
| Series A-1, 5.25%, 11/15/55 |
|
850 |
884,680 |
| Triborough Bridge & Tunnel Authority, Refunding RB |
|
|
|
| Series A, 5.00%, 11/15/46 |
|
4,760 |
4,827,413 |
| Series A-1, 5.00%, 05/15/51 |
|
3,260 |
3,342,362 |
| Series A-1, 5.00%, 11/15/56 |
|
4,000 |
4,085,305 |
| Series C, 5.00%, 05/15/47 |
|
8,730 |
9,044,550 |
| Series C, 4.13%, 05/15/52 |
|
11,980 |
10,907,259 |
| Series C, Sustainability Bonds, 5.25%, 11/15/42 |
|
1,800 |
1,954,495 |
| |
|
|
361,550,330 |
| Utilities — 18.7% |
| ||
| Long Island Power Authority, RB |
|
|
|
| (AGM), 0.00%, 06/01/28(c) |
|
3,515 |
3,323,673 |
| (BAM-TCRS), 5.00%, 09/01/42 |
|
14,000 |
14,206,623 |
| 5.00%, 09/01/47 |
|
1,555 |
1,571,196 |
| Series C, (AGM), 5.25%, 09/01/29 |
|
4,000 |
4,245,056 |
| Series E, Sustainability Bonds, 5.00%, 09/01/53 |
|
7,035 |
7,219,445 |
| Long Island Power Authority, Refunding RB |
|
|
|
| Series A, 5.25%, 09/01/50 |
|
10,000 |
10,558,399 |
| Series B, 09/01/56(g) |
|
5,000 |
5,203,297 |
| New York City Municipal Water Finance Authority, RB |
|
|
|
| Series BB, 5.00%, 06/15/52 |
|
8,470 |
8,685,590 |
| Series CC-1, 4.00%, 06/15/52 |
|
4,000 |
3,557,904 |
| Sub Series AA-1, 5.00%, 06/15/55 |
|
10,000 |
10,238,684 |
| Series BB, Subordinate, 5.25%, 06/15/56 |
|
10,000 |
10,466,412 |
| Security |
|
Par (000) |
Value |
| Utilities (continued) |
| ||
| New York City Municipal Water Finance Authority,
RB (continued) |
|
|
|
| Series FF-1, Subordinate, 4.00%, 06/15/49 |
$ |
9,535 |
$ 8,568,545
|
| New York City Municipal Water Finance Authority,
Refunding RB |
|
|
|
| Series DD, 4.13%, 06/15/46 |
|
4,775 |
4,463,967 |
| Series DD, 4.13%, 06/15/47 |
|
7,300 |
6,781,258 |
| Series EE, 5.00%, 06/15/45 |
|
5,000 |
5,226,922 |
| New York Power Authority, RB |
|
|
|
| Series A, Sustainability Bonds, (AGM), 5.00%, 11/15/48 |
|
12,130 |
12,704,029 |
| Series A, Sustainability Bonds, (AGM), 5.00%,
11/15/53 |
|
9,060 |
9,369,802 |
| Series A, Sustainability Bonds, (AGM), 5.13%, 11/15/58 |
|
6,430 |
6,674,078 |
| New York Power Authority, Refunding RB |
|
|
|
| Series A, Sustainability Bonds, 4.00%, 11/15/50 |
|
12,295 |
11,153,794 |
| Series A, Sustainability Bonds, 4.00%, 11/15/55 |
|
19,630 |
17,319,563 |
| Series A, Sustainability Bonds, 4.00%, 11/15/60 |
|
1,610 |
1,395,450 |
| New York State Environmental Facilities Corp., RB,
Series A, Sustainability Bonds, 5.00%, 09/15/54 |
|
10,000 |
10,335,306 |
| New York State Environmental Facilities Corp., Refunding RB, 5.00%, 06/15/51 |
|
7,810 |
8,081,731 |
| Rockland County Solid Waste Management Authority,
RB, Series A, AMT, Sustainability Bonds, 4.00%,
12/15/46 |
|
2,780 |
2,491,986 |
| Utility Debt Securitization Authority, Refunding RB, Series 2, Sustainability Bonds, 5.00%, 06/15/53 |
|
2,085 |
2,162,144 |
| |
|
|
186,004,854 |
| Total Municipal Bonds in New York |
1,304,008,432 | ||
| Puerto Rico — 2.9% |
| ||
| State — 2.9% |
| ||
| Puerto Rico Sales Tax Financing Corp., Sales Tax
Revenue, RB |
|
|
|
| Series A-1, Restructured, (FHLMC, FNMA, GNMA), 4.75%, 07/01/53 |
|
966 |
917,113 |
| Series A-1, Restructured, 5.00%, 07/01/58 |
|
11,984 |
11,514,204 |
| Series A-2, Restructured, 4.78%, 07/01/58 |
|
2,057 |
1,944,393 |
| Series A-2, Restructured, 4.33%, 07/01/40 |
|
1,288 |
1,257,596 |
| Series B-1, Restructured, 4.75%, 07/01/53 |
|
1,016 |
964,583 |
| Series B-1, Restructured, 5.00%, 07/01/58 |
|
4,806 |
4,567,751 |
| Series B-2, Restructured, 4.78%, 07/01/58 |
|
1,449 |
1,363,193 |
| Puerto Rico Sales Tax Financing Corp., Sales Tax
Revenue, RB, CAB, Series A-1, Restructured, 0.00%,
07/01/46(c) |
|
18,549 |
6,749,629 |
| Total Municipal Bonds in Puerto Rico |
29,278,462 | ||
| South Carolina — 1.0% |
| ||
| Corporate — 1.0% |
| ||
| Patriots Energy Group Financing Agency, RB, Series A1,
5.25%, 10/01/54(a) |
|
9,600 |
10,160,554 |
| Total Municipal Bonds — 140.4% (Cost: $1,402,039,434) |
1,398,846,820 | ||
| Municipal Bonds Transferred to Tender Option Bond Trusts(h) | |||
| New York — 30.4% | |||
| County/City/Special District/School District — 7.0% |
| ||
| Battery Park City Authority, RB, Sustainability Bonds, Series A, 5.00%, 11/01/53 |
|
11,865 |
12,278,396 |
42
2026 BlackRock
Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| County/City/Special District/School District (continued) |
| ||
| City of New York, GO |
|
|
|
| Series B, 5.25%, 10/01/47 |
$ |
5,395 |
$ 5,603,920
|
| Series E1, 5.25%, 04/01/44 |
|
10,000 |
10,552,959 |
| County of Nassau New York, GOL(i)
|
|
|
|
| Series A, 5.00%, 04/01/49 |
|
13,495 |
14,066,469 |
| Series A, 5.00%, 04/01/55 |
|
10,000 |
10,304,035 |
| Triborough Bridge & Tunnel Authority Sales Tax
Revenue, RB, Class A, 5.25%, 05/15/52(i) |
|
16,500 |
17,053,580 |
| |
|
|
69,859,359 |
| Education — 1.4% |
| ||
| Onondaga Civic Development Corp., RB, 5.50%, 12/01/56(i) |
|
13,430 |
14,394,243 |
| Housing — 1.3% |
| ||
| New York City Housing Development Corp., Series 2025-ZF, 5.00%, 11/01/55 |
|
12,505 |
12,522,251 |
| State — 6.2% |
| ||
| New York State Dormitory Authority, RB, Series A, 5.00%, 03/15/44 |
|
10,000 |
10,169,664 |
| New York State Dormitory Authority, Refunding RB |
|
|
|
| Series A, 5.00%, 03/15/55 |
|
10,000 |
10,188,982 |
| Series B, 5.00%, 03/15/54(i) |
|
14,275 |
14,548,784 |
| Series C, 5.50%, 03/15/53(i) |
|
15,000 |
15,985,565 |
| New York State Thruway Authority, Refunding RB,
Series A, 5.00%, 03/15/46(i) |
|
10,305 |
10,688,427 |
| |
|
|
61,581,422 |
| Transportation — 6.8% |
| ||
| Metropolitan Transportation Authority Dedicated Tax Fund, Refunding RB, Sustainability Bonds, Series B-2, 5.00%, 11/15/47(i)
|
|
20,005 |
20,797,510 |
| Port Authority of New York & New Jersey, ARB, AMT,
Series 221, 4.00%, 07/15/55 |
|
2,860 |
2,409,727 |
| Port Authority of New York & New Jersey, Refunding ARB, AMT, Series 200, 5.50%,
08/01/52(i) |
|
14,000 |
14,619,478 |
| Triborough Bridge & Tunnel Authority, RB, Series A,
5.00%, 11/15/49 |
|
9,500 |
9,735,524 |
| Triborough Bridge & Tunnel Authority, Refunding RB |
|
|
|
| Series C, 4.13%, 05/15/52 |
|
5,000 |
4,552,279 |
| Series C, 5.25%, 05/15/52(i) |
|
15,000 |
15,529,766 |
| |
|
|
67,644,284 |
| Utilities — 7.7% |
| ||
| New York City Municipal Water Finance Authority, RB |
|
|
|
| Series BB, 5.25%, 06/15/55 |
|
28,245 |
29,483,857 |
| Sub Series CC-1, 5.25%, 06/15/54 |
|
10,000 |
10,411,936 |
| New York City Municipal Water Finance Authority, Refunding RB, Series AA-3, 5.25%,
06/15/48(i) |
|
17,390 |
18,255,202 |
| Utility Debt Securitization Authority, Refunding RB,
Sustainability Bonds, Series 2, 5.00%, 12/15/50(i) |
|
17,500 |
18,260,265 |
| |
|
|
76,411,260 |
| Total Municipal Bonds in New York |
302,412,819 | ||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 30.4% (Cost: $300,700,059) |
302,412,819 | ||
| Security |
|
Shares |
Value |
| Warrants | |||
| Construction & Engineering — 0.0% |
| ||
| Brightline West, (Expires 11/26/35, Strike Price USD 5.00)(e)(j) |
|
176,014 |
$ 352,028 |
| Total Warrants — 0.0% (Cost: $ — ) |
352,028 | ||
| Total Long-Term Investments — 170.8% (Cost: $1,702,739,493) |
1,701,611,667 | ||
| Short-Term Securities | |||
| Money Market Funds — 0.5% |
| ||
| BlackRock Liquidity Funds, MuniCash, Institutional
Shares, 2.19%(k)(l) |
|
4,772,538 |
4,773,015 |
| Total Short-Term Securities — 0.5% (Cost: $4,773,015) |
4,773,015 | ||
| Total Investments — 171.3% (Cost: $1,707,512,508) |
1,706,384,682 | ||
| Other Assets Less Liabilities — 0.9% |
8,434,516 | ||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (21.5)% |
(213,817,791 ) | ||
| VRDP Shares at Liquidation Value, Net of Deferred Offering Costs —
(50.7)% |
(504,851,844 ) | ||
| Net Assets Applicable to Common Shares — 100.0% |
$ 996,149,563 | ||
| (a) |
Variable rate security. Interest rate resets periodically. The rate shown is the effective
interest rate as of period end. Security description also includes the reference rate and
spread if published and available. |
| (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) |
Zero-coupon bond. |
| (d) |
Issuer filed for bankruptcy and/or is in default. |
| (e) |
Non-income producing security. |
| (f) |
Step coupon security. Coupon rate will either increase (step-up bond) or decrease (step-
down bond) at regular intervals until maturity. Interest rate shown reflects the rate
currently in effect. |
| (g) |
When-issued security. |
| (h) |
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. |
| (i) |
All or a portion of the security is subject to a recourse agreement. The aggregate
maximum potential amount the Fund could ultimately be required to pay under the
agreements, which expire between November 15, 2030 to June 15, 2033, is
$149,649,392. See Note 4 of the Notes to Financial Statements for
details. |
| (j) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the
fair value hierarchy. |
| (k) |
Affiliate of the Fund. |
| (l) |
Annualized 7-day yield as of period end. |
For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
Schedule of Investments 43
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 31, 2026 for purposes of Section 2(a)(3) of
the Investment Company Act of 1940, as amended, were as
follows:
| Affiliated Issuer |
Value at 07/31/25 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 07/31/26 |
Shares Held at 07/31/26 |
Income |
Capital Gain Distributions from Underlying Funds |
| BlackRock Liquidity Funds, MuniCash, Institutional Shares |
$ 22,688,818 |
$ — |
$ (17,915,803 )(a) |
$ — |
$ — |
$ 4,773,015 |
4,772,538 |
$ 290,350 |
$ — |
| (a) |
Represents net amount purchased (sold). |
Derivative Financial Instruments Categorized by Risk
Exposure
For the period ended July 31, 2026, the effect of
derivative financial instruments in the Statements of Operations was as follows:
| |
Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total |
| Net Realized Gain (Loss) from: |
|
|
|
|
|
|
|
| Futures contracts |
$ — |
$ — |
$ — |
$ — |
$ (1,216,965 ) |
$ — |
$ (1,216,965 ) |
| Net Change in Unrealized Appreciation (Depreciation) on: |
|
|
|
|
|
|
|
| Futures contracts |
$ — |
$ — |
$ — |
$ — |
$ 743,628 |
$ — |
$ 743,628 |
Average Quarterly Balances of Outstanding Derivative Financial
Instruments
| Futures contracts: |
|
| Average notional value of contracts — short |
$9,695,664
|
For more information about the Fund’s
investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the
Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial
instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial
instruments into major categories is disclosed in the Schedule of Investments
above.
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Assets |
|
|
|
|
| Investments |
|
|
|
|
| Long-Term Investments |
|
|
|
|
| Municipal Bonds |
$ —
|
$ 1,398,846,820
|
$ —
|
$ 1,398,846,820
|
| Municipal Bonds Transferred to Tender Option Bond Trusts |
— |
302,412,819 |
— |
302,412,819 |
| Warrants |
— |
— |
352,028 |
352,028 |
| Short-Term Securities |
|
|
|
|
| Money Market Funds |
4,773,015 |
— |
— |
4,773,015 |
| |
$4,773,015 |
$1,701,259,639 |
$352,028 |
$1,706,384,682 |
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Liabilities |
|
|
|
|
| TOB Trust Certificates |
$—
|
$(212,509,990
) |
$—
|
$(212,509,990
) |
| VRDP Shares at Liquidation Value |
— |
(505,000,000 ) |
— |
(505,000,000 ) |
| |
$— |
$(717,509,990 ) |
$— |
$(717,509,990 ) |
See notes to financial
statements.
44
2026 BlackRock Annual Report to Shareholders
Schedule of Investments
July 31, 2026
BlackRock MuniYield Pennsylvania Quality Fund (MPA)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Municipal Bonds | |||
| Alabama — 0.2% |
| ||
| Corporate — 0.2% |
| ||
| Black Belt Energy Gas District, RB, Series A, 5.25%,
05/01/56(a) |
$ |
255 |
$ 257,043 |
| California — 0.2% |
| ||
| Transportation — 0.2% |
| ||
| California Infrastructure & Economic Development Bank, Refunding RB, Class B, AMT, Sustainability Bonds, 12.00%, 01/01/65(a)(b) |
|
560 |
358,400 |
| Pennsylvania — 136.4% |
| ||
| Corporate — 3.8% |
| ||
| Montgomery County Industrial Development Authority,
Refunding RB, Series A, 4.10%, 04/01/53(a) |
|
855 |
870,770 |
| Pennsylvania Economic Development Financing Authority, RB |
|
|
|
| 6.88%, 09/01/47(b) |
|
1,190 |
1,297,020 |
| Series B-2, AMT, 3.05%, 04/01/49(a)
|
|
1,300 |
1,299,245 |
| Pennsylvania Economic Development Financing
Authority, Refunding RB |
|
|
|
| 2.50%, 12/01/30(a) |
|
1,400 |
1,400,007 |
| Series B, 5.25%, 12/01/38(a) |
|
325 |
325,235 |
| Series C, 5.25%, 12/01/37(a) |
|
570 |
570,422 |
| AMT, 5.50%, 11/01/44 |
|
135 |
134,980 |
| |
|
|
5,897,679 |
| County/City/Special District/School District — 29.6% |
| ||
| Avon Grove School District Chester County, Refunding GOL(c) |
|
|
|
| (SAW), 11/15/27 |
|
400 |
411,030 |
| (SAW), 11/15/28 |
|
400 |
418,941 |
| Borough of West Chester Pennsylvania, Refunding GO,
3.50%, 11/15/35 |
|
1,095 |
1,063,810 |
| Bristol Township School District, GOL, (BAM SAW), 5.00%, 06/01/42 |
|
1,685 |
1,697,085 |
| Bucks County Industrial Development Authority, RB |
|
|
|
| 5.00%, 03/15/36 |
|
300 |
312,590 |
| 5.00%, 03/15/41 |
|
200 |
201,709 |
| 5.00%, 03/15/51 |
|
700 |
659,844 |
| 5.13%, 03/15/56 |
|
400 |
376,264 |
| Chester County Industrial Development Authority, SAB(b) |
|
|
|
| 4.25%, 03/01/35 |
|
610 |
574,757 |
| 4.75%, 03/01/50 |
|
1,490 |
1,331,846 |
| City of Philadelphia Pennsylvania, GO |
|
|
|
| Series A, 5.00%, 08/01/35 |
|
1,000 |
1,116,582 |
| Series A, 5.25%, 08/01/45 |
|
575 |
617,149 |
| City of Pittsburgh Pennsylvania, GO, 5.00%, 09/01/43 |
|
100 |
104,310 |
| Coatesville School District, GOL, CAB(d) |
|
|
|
| Series A, (BAM SAW), 0.00%, 10/01/35 |
|
1,435 |
962,786 |
| Series A, (BAM SAW), 0.00%, 10/01/37 |
|
1,395 |
826,626 |
| County of Allegheny Pennsylvania, GO |
|
|
|
| Series C, 5.00%, 12/01/54 |
|
2,085 |
2,131,893 |
| Series C-78, 4.00%, 11/01/45 |
|
3,440 |
3,283,789 |
| Cumberland Valley School District, GOL, Series A, (BAM
SAW), 5.00%, 12/01/53 |
|
1,300 |
1,315,817 |
| Elizabeth Forward School District, GOL, (BAM SAW), 4.50%, 09/01/50 |
|
2,245 |
2,152,213 |
| Pennsylvania Economic Development Financing
Authority, RB |
|
|
|
| AMT, 5.00%, 06/30/32 |
|
925 |
981,563 |
| Security |
|
Par (000) |
Value |
| County/City/Special District/School District (continued) |
| ||
| Pennsylvania Economic Development Financing
Authority, RB (continued) |
|
|
|
| AMT, 5.50%, 06/30/43 |
$ |
2,500 |
$ 2,625,417
|
| AMT, 6.00%, 06/30/61 |
|
1,305 |
1,366,512 |
| Radnor Township School District, GOL, (SAW), 5.00%, 08/15/55 |
|
700 |
719,397 |
| School District of Philadelphia, GOL |
|
|
|
| Series A, (SAW), 5.50%, 09/01/48 |
|
2,500 |
2,649,133 |
| Series D, (AGM SAW), 3.00%, 09/01/44 |
|
2,345 |
1,869,948 |
| Seneca Valley School District, GOL, (SAW), 5.00%, 03/01/50 |
|
300 |
310,044 |
| Shaler Area School District, GO, ( SAW), 0.00%,
09/01/30(d) |
|
6,145 |
5,241,073 |
| Southeastern Pennsylvania Transportation Authority, RB |
|
|
|
| 5.25%, 06/01/47 |
|
8,000 |
8,364,541 |
| 5.25%, 06/01/52 |
|
2,305 |
2,385,398 |
| |
|
|
46,072,067 |
| Education — 25.9% |
| ||
| Berks County Municipal Authority, Refunding RB |
|
|
|
| 5.00%, 10/01/39 |
|
430 |
398,100 |
| 5.00%, 10/01/49 |
|
430 |
360,689 |
| Chester County Industrial Development Authority, RB, Sustainability Bonds, 4.00%, 12/01/51 |
|
3,600 |
3,138,355 |
| Chester County Industrial Development Authority,
Refunding RB, (BAM), 4.00%, 08/01/48 |
|
3,000 |
2,646,441 |
| Cumberland County Municipal Authority, Refunding RB, 5.00%, 05/01/56 |
|
1,000 |
1,008,246 |
| Montgomery County Industrial Development Authority,
Refunding RB, 5.25%, 11/01/54 |
|
1,330 |
1,246,337 |
| Pennsylvania Economic Development Financing Authority, RB, 5.00%, 08/01/49 |
|
2,455 |
2,520,172 |
| Pennsylvania Higher Education Assistance Agency, RB |
|
|
|
| Sub-Series 1C, AMT, 5.00%, 06/01/51 |
|
3,130 |
2,921,382 |
| Series 1, AMT, Subordinate, 5.25%, 06/01/53 |
|
380 |
361,696 |
| Series 1C, AMT, Subordinate, 5.50%, 06/01/52 |
|
735 |
716,572 |
| Series B, AMT, Subordinate, 3.13%, 06/01/48 |
|
350 |
241,492 |
| Series B, AMT, Subordinate, 5.00%, 06/01/50 |
|
520 |
484,528 |
| Pennsylvania Higher Educational Facilities Authority, RB,
4.00%, 06/15/55 |
|
1,200 |
1,038,995 |
| Pennsylvania Higher Educational Facilities Authority, Refunding RB |
|
|
|
| 5.00%, 08/15/27 |
|
1,700 |
1,741,355 |
| 5.00%, 08/15/28 |
|
1,600 |
1,674,970 |
| 5.00%, 05/01/41 |
|
500 |
501,076 |
| Series A, 5.00%, 11/01/31 |
|
845 |
874,827 |
| Series A, (AGM), 4.00%, 05/01/50 |
|
4,645 |
3,970,200 |
| Pennsylvania State University, RB, 5.25%, 09/01/54 |
|
1,285 |
1,339,802 |
| Pennsylvania State University, Refunding RB, Series A,
5.50%, 09/01/55 |
|
3,600 |
3,832,161 |
| Philadelphia Authority for Industrial Development, RB |
|
|
|
| 4.00%, 06/15/29 |
|
150 |
147,766 |
| 5.00%, 06/15/39 |
|
335 |
320,661 |
| 4.00%, 12/01/48 |
|
3,300 |
2,998,191 |
| 5.00%, 06/15/49 |
|
935 |
841,558 |
| 5.00%, 06/15/50 |
|
575 |
516,379 |
| 5.25%, 11/01/52 |
|
1,355 |
1,374,366 |
| Philadelphia Authority for Industrial Development,
Refunding RB |
|
|
|
| 5.00%, 06/15/40(b) |
|
300 |
293,624 |
Schedule of Investments 45
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield Pennsylvania Quality Fund (MPA)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Education (continued) |
| ||
| Philadelphia Authority for Industrial Development,
Refunding RB (continued) |
|
|
|
| Series A, 5.25%, 06/15/52 |
$ |
375 |
$ 356,116
|
| Swarthmore Borough Authority, Refunding RB, 5.00%,
09/15/48 |
|
2,395 |
2,482,513 |
| |
|
|
40,348,570 |
| Health — 24.5% |
| ||
| Allegheny County Hospital Development Authority, RB, Series D2, 2.86%, 11/15/47(a)
|
|
1,040 |
1,034,088 |
| Allegheny County Hospital Development Authority,
Refunding RB, Series A, 4.00%, 04/01/37 |
|
1,700 |
1,645,145 |
| Chester County Health and Education Facilities Authority, Refunding RB |
|
|
|
| 5.25%, 06/01/55 |
|
1,750 |
1,767,144 |
| Series A, 5.00%, 10/01/52 |
|
1,000 |
989,685 |
| Cumberland County Municipal Authority, Refunding RB |
|
|
|
| 4.00%, 01/01/36 |
|
395 |
386,530 |
| 4.13%, 01/01/38 |
|
160 |
155,574 |
| 5.00%, 01/01/38 |
|
875 |
875,274 |
| DuBois Hospital Authority, Refunding RB, (BAM-TCRS),
4.00%, 07/15/48 |
|
2,060 |
1,794,591 |
| Geisinger Authority, Refunding RB, 5.00%, 04/01/50 |
|
1,825 |
1,833,168 |
| Lancaster County Hospital Authority, RB, 5.00%,
11/01/46 |
|
1,000 |
1,010,992 |
| Lancaster Industrial Development Authority, RB |
|
|
|
| 4.00%, 12/01/44 |
|
565 |
489,414 |
| 5.00%, 12/01/49 |
|
420 |
400,508 |
| Lancaster Municipal Authority, Refunding RB |
|
|
|
| Series A, 5.00%, 05/01/44 |
|
510 |
514,632 |
| Series A, 5.00%, 05/01/49 |
|
385 |
375,928 |
| Series A, 5.00%, 12/01/55 |
|
550 |
530,626 |
| Montgomery County Higher Education and Health
Authority, Refunding RB |
|
|
|
| 4.00%, 09/01/49 |
|
665 |
559,503 |
| Class B, 5.00%, 05/01/57 |
|
2,000 |
1,960,270 |
| Series B, (BAM-TCRS), 4.00%, 05/01/52 |
|
1,530 |
1,319,208 |
| Montgomery County Industrial Development Authority,
RB, Series C, 4.00%, 11/15/43 |
|
200 |
187,267 |
| Montgomery County Industrial Development Authority, Refunding RB |
|
|
|
| 5.25%, 01/01/40 |
|
220 |
220,054 |
| 5.00%, 12/01/46 |
|
400 |
388,592 |
| Northampton County General Purpose Authority,
Refunding RB |
|
|
|
| Series A1, (AGM), 4.00%, 08/15/43 |
|
2,085 |
1,963,767 |
| Series A1, 5.25%, 08/15/53 |
|
2,085 |
2,128,339 |
| Pennsylvania Economic Development Financing Authority, RB |
|
|
|
| Series A-1, 5.00%, 05/15/31 |
|
3,420 |
3,656,722 |
| Series A-2, 4.00%, 05/15/53 |
|
1,020 |
849,219 |
| Pennsylvania Economic Development Financing
Authority, Refunding RB |
|
|
|
| Series A, 5.25%, 12/15/51 |
|
1,500 |
1,548,295 |
| Series A, 4.00%, 02/15/52 |
|
640 |
535,627 |
| Pennsylvania Higher Educational Facilities Authority, RB, 3.00%, 08/15/47 |
|
1,900 |
1,417,851 |
| Philadelphia Authority for Industrial Development, RB,
Series A, 4.00%, 07/01/49 |
|
2,380 |
2,147,468 |
| Security |
|
Par (000) |
Value |
| Health (continued) |
| ||
| Pottsville Hospital Authority, Refunding RB, Series B,
5.00%, 07/01/41(e) |
$ |
3,000 |
$ 3,026,938
|
| St Mary Hospital Authority, Refunding RB, 5.00%, 12/01/48 |
|
1,000 |
1,008,889 |
| Wayne County Hospital & Health Facilities Authority, RB,
Series A, (GTD), 4.00%, 07/01/46 |
|
1,595 |
1,436,053 |
| |
|
|
38,157,361 |
| Housing — 15.8% |
| ||
| Pennsylvania Housing Finance Agency, RB, M/F Housing |
|
|
|
| (HUD SECT 8), 3.15%, 01/01/46(a) |
|
700 |
696,398 |
| Series A, (HUD SECT 8), 4.85%, 08/01/45 |
|
1,775 |
1,726,016 |
| Pennsylvania Housing Finance Agency, RB, S/F Housing |
|
|
|
| Series 145A, Sustainability Bonds, 4.60%, 10/01/44 |
|
2,120 |
2,096,014 |
| Series 145A, Sustainability Bonds, 6.00%, 10/01/54 |
|
1,820 |
1,945,918 |
| Series 146A, Sustainability Bonds, 4.13%, 10/01/39 |
|
1,000 |
964,574 |
| Series 146A, Sustainability Bonds, 4.50%, 10/01/44 |
|
1,000 |
983,759 |
| Series 148A, Sustainability Bonds, 4.80%, 10/01/55 |
|
2,320 |
2,220,623 |
| Series 149A, Sustainability Bonds, 5.20%, 04/01/53 |
|
1,085 |
1,094,277 |
| Series 151-A, Sustainability Bonds, 4.90%, 10/01/50 |
|
4,000 |
3,925,019 |
| Series 151-A, Sustainability Bonds, 4.95%, 10/01/53 |
|
1,700 |
1,635,746 |
| Series 151-A, Sustainability Bonds, 6.25%, 10/01/55 |
|
1,693 |
1,886,968 |
| Series 152-A, Sustainability Bonds, 4.10%, 10/01/41 |
|
300 |
286,872 |
| Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing |
|
|
|
| Series 142-A, Sustainability Bonds, 5.00%, 10/01/43 |
|
1,000 |
1,034,328 |
| Series 150A, Sustainability Bonds, 5.25%, 10/01/52 |
|
2,170 |
2,173,625 |
| Series 2022, Sustainability Bonds, 4.15%, 10/01/42 |
|
2,100 |
1,995,077 |
| |
|
|
24,665,214 |
| State — 10.8% |
| ||
| Allentown Neighborhood Improvement Zone Development Authority, RB(b)
|
|
|
|
| 5.00%, 05/01/32 |
|
1,260 |
1,265,179 |
| 5.00%, 05/01/42 |
|
1,400 |
1,439,101 |
| Series A, 5.25%, 05/01/42 |
|
1,875 |
1,918,684 |
| Commonwealth of Pennsylvania, GO |
|
|
|
| 1st Series, Class B, 4.25%, 04/01/46 |
|
1,020 |
989,882 |
| Series 2020, 2.13%, 05/01/40 |
|
1,000 |
739,093 |
| Pennsylvania Economic Development Financing
Authority, RB |
|
|
|
| 5.00%, 12/31/38 |
|
2,270 |
2,270,031 |
| 5.00%, 06/30/42 |
|
2,000 |
1,973,911 |
| Pennsylvania Turnpike Commission Oil Franchise Tax Revenue, Refunding RB, Series A, 4.00%, 12/01/51 |
|
5,020 |
4,435,673 |
| Red Oak Independent School District, RB, 1st Series,
Class B, 4.00%, 08/15/43 |
|
1,855 |
1,784,141 |
| |
|
|
16,815,695 |
| Tobacco — 0.8% |
| ||
| Commonwealth Financing Authority, RB, 5.00%, 06/01/35 |
|
1,295 |
1,330,953 |
| Transportation — 14.3% |
| ||
| Allegheny County Airport Authority, ARB |
|
|
|
| Series A, AMT, (AGM), 5.25%, 01/01/39 |
|
880 |
948,166 |
| Series A, AMT, (AGM), 5.50%, 01/01/53 |
|
500 |
515,155 |
| City of Philadelphia Pennsylvania Airport Revenue,
Refunding ARB, AMT, (AGM), 4.00%, 07/01/46 |
|
4,525 |
4,057,431 |
46
2026 BlackRock
Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield Pennsylvania Quality Fund (MPA)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Transportation (continued) |
| ||
| City of Philadelphia Pennsylvania Airport Revenue,
Refunding RB |
|
|
|
| Series B, AMT, 5.50%, 07/01/51 |
$ |
500 |
$ 519,651
|
| Series C, AMT, 4.00%, 07/01/50 |
|
400 |
345,480 |
| Pennsylvania Economic Development Financing Authority, RB |
|
|
|
| AMT, 5.25%, 06/30/53 |
|
2,480 |
2,499,894 |
| AMT, (AGM), 5.00%, 12/31/57 |
|
2,000 |
1,997,805 |
| Pennsylvania Turnpike Commission, RB |
|
|
|
| Sub-Series B-1, 5.25%, 06/01/47 |
|
1,000 |
1,008,110 |
| 1st Series, Subordinate, 5.00%, 12/01/40 |
|
2,035 |
2,139,729 |
| Series A, Subordinate, 3.00%, 12/01/42 |
|
1,400 |
1,126,791 |
| Series A, Subordinate, 4.00%, 12/01/49 |
|
2,000 |
1,763,804 |
| Series A, Subordinate, 4.00%, 12/01/50 |
|
2,500 |
2,192,266 |
| Series A, Subordinate, (BAM-TCRS), 4.00%,
12/01/50 |
|
1,385 |
1,249,269 |
| Pennsylvania Turnpike Commission, RB, CAB, Sub- Series A-3, (AGM), 0.00%,
12/01/40(d) |
|
1,975 |
998,471 |
| Pennsylvania Turnpike Commission, Refunding RB, 1st
Series, 5.00%, 12/01/43 |
|
860 |
914,731 |
| |
|
|
22,276,753 |
| Utilities — 10.9% |
| ||
| Allegheny County Sanitary Authority, Refunding RB |
|
|
|
| 4.00%, 12/01/49 |
|
485 |
437,033 |
| 5.25%, 12/01/55 |
|
645 |
665,823 |
| City of Philadelphia Pennsylvania Water & Wastewater
Revenue, RB |
|
|
|
| Series C, (AGM), 5.25%, 09/01/49 |
|
1,500 |
1,574,015 |
| Series C, 5.50%, 06/01/52 |
|
1,900 |
2,001,098 |
| Series C, (AGM), 5.25%, 09/01/54 |
|
500 |
518,205 |
| City of Philadelphia Pennsylvania Water & Wastewater
Revenue, Refunding RB, Series B, (AGM), 4.50%,
09/01/48 |
|
1,140 |
1,126,769 |
| New Kensington Municipal Sanitary Authority, RB, (AGM), 3.25%, 12/01/47 |
|
1,195 |
927,481 |
| Philadelphia Gas Works Co., Refunding RB, Series A,
(AGM), 5.25%, 08/01/54 |
|
7,500 |
7,776,560 |
| Pittsburgh Water & Sewer Authority, RB, Series A, 1st Lien, (AGM), 5.00%, 09/01/55 |
|
970 |
996,828 |
| Westmoreland County Municipal Authority, RB, (AGM),
5.00%, 08/15/49 |
|
1,000 |
1,025,425 |
| |
|
|
17,049,237 |
| Total Municipal Bonds in Pennsylvania |
212,613,529 | ||
| Puerto Rico — 2.2% |
| ||
| State — 2.2% |
| ||
| Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue, RB |
|
|
|
| Series A-1, Restructured, 5.00%, 07/01/58 |
|
292 |
280,553 |
| Series A-2, Restructured, 4.78%, 07/01/58 |
|
46 |
43,482 |
| Series A-2, Restructured, 4.33%, 07/01/40 |
|
37 |
36,126 |
| Series B-1, Restructured, 4.75%, 07/01/53 |
|
208 |
197,474 |
| Security |
|
Par (000) |
Value |
| State (continued) |
| ||
| Puerto Rico Sales Tax Financing Corp., Sales Tax
Revenue, RB (continued) |
|
|
|
| Series B-1, Restructured, 5.00%, 07/01/58 |
$ |
1,758 |
$ 1,670,850
|
| Series B-2, Restructured, 4.78%, 07/01/58 |
|
274 |
257,774 |
| Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(d) |
|
2,338 |
850,754 |
| Total Municipal Bonds in Puerto Rico |
3,337,013 | ||
| Wisconsin — 1.2% |
| ||
| Transportation — 1.2% |
| ||
| Public Finance Authority, RB |
|
|
|
| Series A, AMT, Senior Lien, 5.50%, 07/01/44 |
|
850 |
866,375 |
| Series A, AMT, Senior Lien, 5.75%, 07/01/49 |
|
1,000 |
1,030,280 |
| Total Municipal Bonds in Wisconsin |
1,896,655 | ||
| Total Municipal Bonds — 140.2% (Cost: $222,136,719) |
218,462,640 | ||
| Municipal Bonds Transferred to Tender Option Bond Trusts(f) | |||
| Pennsylvania — 10.4% | |||
| Health — 2.7% |
| ||
| Pennsylvania Higher Educational Facilities Authority, Refunding RB, Series 2025, 5.25%,
08/15/50(g) |
|
4,000 |
4,201,996 |
| Housing — 4.6% |
| ||
| Pennsylvania Housing Finance Agency, RB, S/F Housing |
|
|
|
| Series 143A, Sustainability Bonds, 5.38%, 10/01/46 |
|
3,209 |
3,330,128 |
| Series 147 A, Sustainability Bonds, 4.70%, 10/01/49(g) |
|
1,410 |
1,399,135 |
| Pennsylvania Housing Finance Agency, Refunding RB,
S/F Housing, Sustainability Bonds, Series 142-A,
5.00%, 10/01/50 |
|
2,538 |
2,522,473 |
| |
|
|
7,251,736 |
| Utilities — 3.1% |
| ||
| Philadelphia Gas Works Co., Refunding RB, Series A, 5.25%, 08/01/54(g) |
|
4,648 |
4,819,225 |
| Total Municipal Bonds in Pennsylvania |
16,272,957 | ||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 10.4% (Cost: $16,263,576) |
16,272,957 | ||
Schedule of Investments 47
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield Pennsylvania Quality Fund (MPA)
(Percentages shown are based on Net Assets)
| Security |
|
Shares |
Value |
| Warrants | |||
| Construction & Engineering — 0.0% |
| ||
| Brightline West, (Expires 11/26/35, Strike Price USD 5.00)(h)(i) |
|
26,429 |
$ 52,858 |
| Total Warrants — 0.0% (Cost: $ — ) |
52,858 | ||
| Total Long-Term Investments — 150.6% (Cost: $238,400,295) |
234,788,455 | ||
| Short-Term Securities | |||
| Money Market Funds — 8.5% |
| ||
| BlackRock Liquidity Funds, MuniCash, Institutional
Shares, 2.19%(j)(k) |
|
13,184,650 |
13,185,969 |
| Total Short-Term Securities — 8.5% (Cost: $13,185,960) |
13,185,969 | ||
| Total Investments — 159.1% (Cost: $251,586,255) |
247,974,424 | ||
| Other Assets Less Liabilities — 0.8% |
1,291,131 | ||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (7.0)% |
(10,955,958 ) | ||
| VRDP Shares at Liquidation Value, Net of Deferred Offering Costs —
(52.9)% |
(82,428,474 ) | ||
| Net Assets Applicable to Common Shares — 100.0% |
$ 155,881,123 | ||
| (a) |
Variable rate security. Interest rate resets periodically. The rate shown is the effective
interest rate as of period end. Security description also includes the reference rate and
spread if published and available. |
| (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) |
When-issued security. |
| (d) |
Zero-coupon bond. |
| (e) |
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. |
| (f) |
Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates
received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4
of the Notes to Financial Statements for details. |
| (g) |
All or a portion of the security is subject to a recourse agreement. The aggregate
maximum potential amount the Fund could ultimately be required to pay under the
agreement, which expires on August 1, 2032 to October 1, 2042, is
$7,070,205. See Note 4 of the Notes to Financial Statements for
details. |
| (h) |
Security is valued using significant unobservable inputs and is classified as Level 3 in the
fair value hierarchy. |
| (i) |
Non-income producing security. |
| (j) |
Affiliate of the Fund. |
| (k) |
Annualized 7-day yield as of period end. |
For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund
during the year ended July 31, 2026 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliated Issuer |
Value at 07/31/25 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 07/31/26 |
Shares Held at 07/31/26 |
Income |
Capital Gain Distributions from Underlying Funds |
| BlackRock Liquidity Funds, MuniCash, Institutional Shares |
$ 3,568,789 |
$ 9,617,180
(a) |
$ — |
$ — |
$ — |
$ 13,185,969 |
13,184,650 |
$ 247,238 |
$ — |
| (a) |
Represents net amount purchased (sold). |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of
financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial
instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Assets |
|
|
|
|
| Investments |
|
|
|
|
| Long-Term Investments |
|
|
|
|
| Municipal Bonds |
$ —
|
$ 218,462,640
|
$ —
|
$ 218,462,640
|
| Municipal Bonds Transferred to Tender Option Bond Trusts |
— |
16,272,957 |
— |
16,272,957 |
| Warrants |
— |
— |
52,858 |
52,858 |
48
2026 BlackRock
Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock MuniYield Pennsylvania Quality Fund (MPA)
Fair Value Hierarchy as of Period End (continued)
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Short-Term Securities |
|
|
|
|
| Money Market Funds |
$ 13,185,969 |
$ — |
$ — |
$ 13,185,969 |
| |
$13,185,969 |
$234,735,597 |
$52,858 |
$247,974,424 |
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Liabilities |
|
|
|
|
| TOB Trust Certificates |
$—
|
$(10,845,100
) |
$—
|
$(10,845,100
) |
| VRDP Shares at Liquidation Value |
— |
(82,600,000 ) |
— |
(82,600,000 ) |
| |
$— |
$(93,445,100 ) |
$— |
$(93,445,100 ) |
See notes to financial
statements.
Schedule of Investments 49
Schedule of Investments
July 31, 2026
BlackRock Virginia Municipal Bond Trust (BHV)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Municipal Bonds | |||
| Alabama — 6.0% |
| ||
| Corporate — 6.0% |
| ||
| Black Belt Energy Gas District, RB, Series A, 5.25%,
01/01/54(a) |
$ |
1,015 |
$ 1,062,214 |
| District of Columbia — 2.7% |
| ||
| Tobacco — 2.7% |
| ||
| District of Columbia Tobacco Settlement Financing Corp., RB, Series C, 0.00%, 06/15/55(b)
|
|
5,400 |
470,505 |
| Iowa — 5.7% |
| ||
| Corporate — 5.7% |
| ||
| PEFA, Inc., RB, 5.00%, 09/01/49(a) |
|
1,000 |
1,001,465 |
| Puerto Rico — 4.2% |
| ||
| State — 4.2% |
| ||
| Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue, RB |
|
|
|
| Series A-1, Restructured, (FHLMC, FNMA, GNMA),
4.75%, 07/01/53 |
|
88 |
83,547 |
| Series A-1, Restructured, 5.00%, 07/01/58 |
|
507 |
487,125 |
| Series A-2, Restructured, 4.78%, 07/01/58 |
|
129 |
121,938 |
| Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%,
07/01/46(b) |
|
140 |
50,943 |
| Total Municipal Bonds in Puerto Rico |
743,553 | ||
| Virginia — 140.5% |
| ||
| County/City/Special District/School District — 34.1% |
| ||
| Albemarle County Economic Development Authority, RB, Series A, 5.00%, 06/01/42 |
|
500 |
530,474 |
| Chesterfield County Economic Development Authority, RB |
|
|
|
| 5.00%, 04/01/43 |
|
500 |
531,744 |
| 5.00%, 04/01/45 |
|
1,000 |
1,053,973 |
| Hampton Roads Transportation Accountability Commission, RB, Series A, 4.00%, 07/01/57 |
|
2,000 |
1,786,154 |
| Virginia Public School Authority, RB, (SAW), 5.00%,
08/01/43 |
|
1,000 |
1,075,880 |
| Winchester Economic Development Authority, RB, Series A, 5.00%, 08/01/43 |
|
1,000 |
1,053,557 |
| |
|
|
6,031,782 |
| Education — 5.9% |
| ||
| Virginia College Building Authority, Refunding RB, (NPFGC),
5.25%, 01/01/31 |
|
1,000 |
1,055,112 |
| Health — 24.1% |
| ||
| Danville Industrial Development Authority, Refunding RB,
(AMBAC), 5.25%, 10/01/28(c) |
|
70 |
71,629 |
| Henrico County Economic Development Authority, RB |
|
|
|
| Class A, 5.00%, 10/01/52 |
|
1,000 |
988,921 |
| Series A, 5.00%, 11/01/48 |
|
500 |
510,470 |
| Isle Wight County Industrial Development Authority, RB,
(AGM), 5.25%, 07/01/53 |
|
500 |
508,353 |
| Lynchburg Economic Development Authority, RB, 5.50%, 01/01/56 |
|
400 |
417,868 |
| Virginia Commonwealth University Health System Authority,
RB, Series A, 5.25%, 07/01/49 |
|
1,000 |
1,054,918 |
| Security |
|
Par (000) |
Value |
| Health (continued) |
| ||
| Virginia Small Business Financing Authority, Refunding RB |
|
|
|
| Series A, 5.50%, 12/01/54 |
$ |
500 |
$ 511,942
|
| Series A, 5.25%, 12/01/56 |
|
200 |
201,025 |
| |
|
|
4,265,126 |
| Housing — 21.6% |
| ||
| Virginia Housing Development Authority, RB, M/F Housing |
|
|
|
| Series B, 5.00%, 03/01/65 |
|
1,000 |
1,002,123 |
| Series F, (HUD SEC 8), 5.35%, 11/01/58 |
|
1,000 |
1,025,762 |
| Series G, 5.15%, 11/01/52 |
|
600 |
609,042 |
| Virginia Housing Development Authority, RB, S/F Housing |
|
|
|
| Series C, 4.88%, 07/01/48 |
|
750 |
754,579 |
| Series H, (FHLMC, FNMA, GNMA), 4.90%, 01/01/57 |
|
450 |
436,478 |
| |
|
|
3,827,984 |
| State — 21.3% |
| ||
| Ballston Quarter Community Development Authority, TA,
Series A-1, 5.50%, 03/01/46 |
|
94 |
92,469 |
| Ballston Quarter Community Development Authority, TA, CAB, Series A-2, 7.13%, 03/01/59(d)
|
|
225 |
208,152 |
| Cherry Hill Community Development Authority, SAB, 5.40%,
03/01/45(e) |
|
250 |
250,190 |
| Lower Magnolia Green Community Development Authority, SAB, 5.00%, 03/01/35(e) |
|
220 |
220,023 |
| Virginia College Building Authority, RB |
|
|
|
| 4.00%, 02/01/42 |
|
1,000 |
961,833 |
| 4.00%, 02/01/43 |
|
500 |
476,923 |
| Series A, 4.00%, 02/01/42 |
|
500 |
480,371 |
| Series A, (SAW), 4.00%, 09/01/47 |
|
605 |
560,926 |
| Virginia Resources Authority, RB, Class B, 5.25%, 11/01/47 |
|
500 |
527,719 |
| |
|
|
3,778,606 |
| Tobacco — 6.3% |
| ||
| Tobacco Settlement Financing Corp., Refunding RB |
|
|
|
| Series B-1, 5.00%, 06/01/47 |
|
885 |
708,925 |
| Series B-2, Convertible, 5.20%, 06/01/46(d) |
|
500 |
404,969 |
| |
|
|
1,113,894 |
| Transportation — 10.5% |
| ||
| Chesapeake Bay Bridge & Tunnel District, RB, 5.00%, 07/01/46 |
|
1,000 |
992,415 |
| Norfolk Airport Authority, ARB, AMT, (BAM), 5.50%,
07/01/56 |
|
400 |
415,220 |
| Virginia Small Business Financing Authority, RB, AMT, 5.00%, 12/31/56 |
|
455 |
445,461 |
| |
|
|
1,853,096 |
| Utilities — 16.7% |
| ||
| City of Norfolk Virginia Water Revenue, RB, 5.00%,
11/01/45 |
|
500 |
528,074 |
| City of Richmond VA Public Utility Revenue RB, Series B, 5.00%, 01/15/54 |
|
450 |
462,219 |
50
2026 BlackRock
Annual Report to Shareholders
Schedule of Investments (continued)
July
31, 2026
BlackRock Virginia Municipal Bond Trust (BHV)
(Percentages shown are based on Net Assets)
| Security |
|
Par (000) |
Value |
| Utilities (continued) |
| ||
| County of Henrico Virginia Water & Sewer Revenue, RB,
4.00%, 05/01/46 |
$ |
1,000 |
$ 932,767
|
| Prince William County Service Authority, Refunding RB, 5.00%, 07/15/55 |
|
1,000 |
1,034,768 |
| |
|
|
2,957,828 |
| Total Municipal Bonds in Virginia |
24,883,428 | ||
| Total Long-Term Investments — 159.1% (Cost: $28,494,617) |
28,161,165 | ||
| |
|
Shares |
|
| Short-Term Securities | |||
| Money Market Funds — 5.0% |
| ||
| BlackRock Liquidity Funds, MuniCash, Institutional Shares, 2.19%(f)(g) |
|
883,651 |
883,739 |
| Total Short-Term Securities — 5.0% (Cost: $883,683) |
883,739 | ||
| Total Investments — 164.1% (Cost: $29,378,300) |
29,044,904 | ||
| Other Assets Less Liabilities — 1.2% |
222,758 | ||
| VRDP Shares at Liquidation Value, Net of Deferred Offering Costs —
(65.3)% |
(11,563,144 ) | ||
| Net Assets Applicable to Common Shares — 100.0% |
$ 17,704,518 | ||
| (a) |
Variable rate security. Interest rate resets periodically. The rate shown is the effective
interest rate as of period end. Security description also includes the reference rate and
spread if published and available. |
| (b) |
Zero-coupon bond. |
| (c) |
Security is collateralized by municipal bonds or U.S. Treasury obligations. |
| (d) |
Step coupon security. Coupon rate will either increase (step-up bond) or decrease (step-
down bond) at regular intervals until maturity. Interest rate shown reflects the rate
currently in effect. |
| (e) |
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. |
| (f) |
Affiliate of the Fund. |
| (g) |
Annualized 7-day yield as of period end. |
For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund
during the year ended July 31, 2026 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliated Issuer |
Value at 07/31/25 |
Purchases at Cost |
Proceeds from Sales |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 07/31/26 |
Shares Held at 07/31/26 |
Income |
Capital Gain Distributions from Underlying Funds |
| BlackRock Liquidity Funds, MuniCash, Institutional Shares |
$ 1,106,159 |
$ — |
$ (222,420 )(a) |
$ — |
$ — |
$ 883,739 |
883,651 |
$ 29,090 |
$ — |
| (a) |
Represents net amount purchased (sold). |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of
financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial
instruments, refer to the Notes to Financial Statements.
The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Assets |
|
|
|
|
| Investments |
|
|
|
|
| Long-Term Investments |
|
|
|
|
| Municipal Bonds |
$ —
|
$ 28,161,165
|
$ —
|
$ 28,161,165
|
| Short-Term Securities |
|
|
|
|
| Money Market Funds |
883,739 |
— |
— |
883,739 |
| |
$883,739 |
$28,161,165 |
$— |
$29,044,904 |
Schedule of Investments 51
Schedule of Investments (continued)
July
31, 2026
BlackRock Virginia Municipal Bond Trust (BHV)
The Fund may hold
assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are
categorized within the fair value hierarchy as follows:
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Liabilities |
|
|
|
|
| VRDP Shares at Liquidation Value |
$— |
$(11,600,000 ) |
$— |
$(11,600,000 ) |
| |
$— |
$(11,600,000 ) |
$— |
$(11,600,000 ) |
See notes to financial
statements.
52
2026 BlackRock Annual Report to Shareholders
Statements of Assets and Liabilities July 31, 2026
| |
MUC |
MUJ |
MIY |
MYN |
| ASSETS |
|
|
|
|
| Investments, at value —
unaffiliated(a) |
$ 2,358,995,115 |
$ 1,051,899,642 |
$ 573,005,567 |
$ 1,701,611,667 |
| Investments, at value —
affiliated(b) |
45,311,820 |
24,454,465 |
5,984,523 |
4,773,015 |
| Receivables: |
|
|
|
|
| Investments sold |
10,680,292 |
70,000 |
— |
— |
| TOB Trust |
9,374,000 |
— |
— |
— |
| Dividends — affiliated |
135,848 |
67,006 |
10,272 |
20,474 |
| Interest — unaffiliated |
33,522,397 |
8,689,626 |
6,177,104 |
19,492,864 |
| Prepaid expenses |
392,779 |
480,362 |
120,659 |
515,749 |
| Total assets |
2,458,412,251 |
1,085,661,101 |
585,298,125 |
1,726,413,769 |
| ACCRUED LIABILITIES |
|
|
|
|
| Bank overdraft |
92,867 |
— |
— |
— |
| Payables: |
|
|
|
|
| Investments purchased |
20,448,346 |
— |
— |
5,218,200 |
| TOB Trust |
5,014,151 |
— |
— |
— |
| Accounting services fees |
61,804 |
47,357 |
31,207 |
27,224 |
| Custodian fees |
5,154 |
3,778 |
2,101 |
1,899 |
| Income dividend distributions — Common Shares |
6,687,938 |
2,871,995 |
1,579,448 |
4,819,125 |
| Interest expense and fees |
1,674,496 |
67,349 |
— |
1,307,801 |
| Investment advisory fees |
1,136,431 |
462,334 |
245,261 |
736,566 |
| Directors’ and Officer’s fees |
698,119 |
89,558 |
1,901 |
487,449 |
| Other accrued expenses |
61,782 |
291,099 |
2,958 |
212,949 |
| Professional fees |
79,858 |
58,674 |
56,414 |
82,284 |
| Reorganization costs |
— |
— |
128,080 |
— |
| Transfer agent fees |
18,139 |
8,682 |
6,276 |
8,875 |
| Total accrued liabilities |
35,979,085 |
3,900,826 |
2,053,646 |
12,902,372 |
| OTHER LIABILITIES |
|
|
|
|
| TOB Trust Certificates |
288,434,986 |
11,706,105 |
— |
212,509,990 |
| VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)(e) |
697,177,119 |
416,525,064 |
231,587,439 |
504,851,844 |
| Total other liabilities |
985,612,105 |
428,231,169 |
231,587,439 |
717,361,834 |
| Total liabilities |
1,021,591,190 |
432,131,995 |
233,641,085 |
730,264,206 |
| Commitments and contingent liabilities |
|
|
|
|
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
$ 1,436,821,061
|
$ 653,529,106
|
$ 351,657,040
|
$ 996,149,563 |
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF |
|
|
|
|
| Paid-in capital(f)(g)(h) |
$ 1,718,542,256 |
$ 731,647,080 |
$ 401,146,797 |
$ 1,228,469,998 |
| Accumulated loss |
(281,721,195) |
(78,117,974) |
(49,489,757) |
(232,320,435) |
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
$ 1,436,821,061 |
$ 653,529,106 |
$ 351,657,040 |
$ 996,149,563 |
| Net asset value per Common Share |
$ 11.49 |
$ 12.29 |
$ 12.13 |
$ 10.58 |
| (a) Investments, at cost—unaffiliated |
$2,362,817,674 |
$1,069,583,443 |
$580,364,771 |
$1,702,739,493 |
| (b) Investments, at cost—affiliated |
$45,311,820 |
$24,454,315 |
$5,984,470 |
$4,773,015 |
| (c) Preferred Shares outstanding
|
6,977 |
4,171 |
2,319 |
5,050 |
| (d) Preferred Shares authorized
|
26,128 |
12,291 |
8,919 |
14,637 |
| (e) Par value per Preferred Share
|
$0.10 |
$0.10 |
$0.10 |
$0.10 |
| (f) Common Shares outstanding
|
125,008,185 |
53,185,098 |
28,980,707 |
94,123,547 |
| (g) Common Shares authorized |
199,973,872 |
199,987,709 |
199,991,081 |
199,985,363 |
| (h) Par value per Common Share
|
$0.10 |
$0.10 |
$0.10 |
$0.10 |
See notes to financial statements.
Financial Statements 53
Statements of Assets and Liabilities (continued) July 31,
2026
| |
MPA |
BHV |
| ASSETS |
|
|
| Investments, at value —
unaffiliated(a) |
$ 234,788,455 |
$ 28,161,165 |
| Investments, at value —
affiliated(b) |
13,185,969 |
883,739 |
| Receivables: |
|
|
| Dividends — affiliated |
27,458 |
1,864 |
| Interest — unaffiliated |
2,852,529 |
338,506 |
| Prepaid expenses |
93,121 |
24,296 |
| Total assets |
250,947,532 |
29,409,570 |
| ACCRUED LIABILITIES |
|
|
| Payables: |
|
|
| Investments purchased |
832,424 |
— |
| Accounting services fees |
17,388 |
3,595 |
| Custodian fees |
957 |
172 |
| Income dividend distributions — Common Shares |
617,698 |
69,889 |
| Interest expense and fees |
110,858 |
— |
| Investment advisory fees |
103,972 |
13,041 |
| Directors’ and Officer’s fees |
13,497 |
14,105 |
| Other accrued expenses |
3,660 |
5,798 |
| Professional fees |
57,716 |
33,078 |
| Reorganization costs |
31,788 |
— |
| Transfer agent fees |
2,877 |
2,230 |
| Total accrued liabilities |
1,792,835 |
141,908 |
| OTHER LIABILITIES |
|
|
| TOB Trust Certificates |
10,845,100 |
— |
| VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)(e) |
82,428,474 |
11,563,144 |
| Total other liabilities |
93,273,574 |
11,563,144 |
| Total liabilities |
95,066,409 |
11,705,052 |
| Commitments and contingent liabilities |
|
|
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
$ 155,881,123
|
$ 17,704,518 |
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF |
|
|
| Paid-in capital(f)(g)(h) |
$ 181,494,869 |
$ 21,749,515 |
| Accumulated loss |
(25,613,746) |
(4,044,997) |
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
$ 155,881,123 |
$ 17,704,518 |
| Net asset value per Common Share |
$ 12.04 |
$ 11.14 |
| (a) Investments, at cost—unaffiliated |
$238,400,295 |
$28,494,617 |
| (b) Investments, at cost—affiliated |
$13,185,960 |
$883,683 |
| (c) Preferred Shares outstanding
|
826 |
116 |
| (d) Preferred Shares authorized
|
1,000,000 |
Unlimited |
| (e) Par value per Preferred Share
|
$0.05 |
$0.001 |
| (f) Common Shares outstanding
|
12,949,630 |
1,588,827 |
| (g) Common Shares authorized |
Unlimited |
Unlimited |
| (h) Par value per Common Share
|
$0.10 |
$0.001 |
See notes to financial statements.
54
2026 BlackRock Annual Report to Shareholders
Statements of Operations Year Ended July 31, 2026
| |
MUC |
MUJ |
MIY |
MYN |
| INVESTMENT INCOME |
|
|
|
|
| Dividends — affiliated |
$1,667,110
|
$579,004
|
$97,020
|
$290,350
|
| Interest — unaffiliated |
97,795,165 |
48,554,026 |
26,600,116 |
55,304,230 |
| Total investment income |
99,462,275 |
49,133,030 |
26,697,136 |
55,594,580 |
| EXPENSES |
|
|
|
|
| Investment advisory |
11,690,940 |
5,505,183 |
2,889,303 |
5,940,279 |
| Liquidity fees |
4,391,988 |
2,973,714 |
— |
1,027,273 |
| Remarketing fees on Preferred Shares |
608,061 |
417,100 |
— |
144,088 |
| Reorganization |
485,137 |
— |
173,079 |
191,735 |
| Accounting services |
199,302 |
130,389 |
92,239 |
112,276 |
| Directors and Officer |
121,767 |
44,141 |
21,843 |
57,655 |
| Professional |
96,288 |
57,584 |
69,100 |
66,427 |
| Transfer agent |
80,787 |
73,316 |
28,439 |
39,463 |
| Registration |
36,962 |
19,543 |
10,642 |
23,118 |
| Custodian |
16,994 |
10,910 |
6,346 |
7,523 |
| Printing and postage |
9,874 |
8,640 |
6,558 |
5,318 |
| Proxy |
— |
— |
— |
10,892 |
| Miscellaneous |
106,342 |
94,175 |
77,683 |
83,160 |
| Total expenses excluding interest expense, fees and amortization of offering costs |
17,844,442 |
9,334,695 |
3,375,232 |
7,709,207 |
| Interest expense, fees and amortization of offering costs(a) |
23,085,197 |
11,542,061 |
7,918,186 |
14,858,340 |
| Total expenses |
40,929,639 |
20,876,756 |
11,293,418 |
22,567,547 |
| Less fees waived and/or reimbursed by the Manager |
(443,451 ) |
(25,325 ) |
(4,246 ) |
(12,551 ) |
| Total expenses after fees waived and/or reimbursed |
40,486,188 |
20,851,431 |
11,289,172 |
22,554,996 |
| Net investment income |
58,976,087 |
28,281,599 |
15,407,964 |
33,039,584 |
| REALIZED AND UNREALIZED GAIN (LOSS) |
|
|
|
|
| Net realized gain (loss) from: |
|
|
|
|
| Investments — unaffiliated |
1,329,200 |
(1,410,683 ) |
145,253 |
50,797 |
| Investments — affiliated |
— |
— |
162 |
— |
| Futures contracts |
— |
— |
— |
(1,216,965 ) |
| |
1,329,200 |
(1,410,683 ) |
145,415 |
(1,166,168 ) |
| Net change in unrealized appreciation (depreciation) on: |
|
|
|
|
| Investments — unaffiliated |
30,994,133 |
26,229,748 |
15,173,368 |
2,704,509 |
| Investments — affiliated |
— |
— |
(162 ) |
— |
| Futures contracts |
— |
— |
— |
743,628 |
| |
30,994,133 |
26,229,748 |
15,173,206 |
3,448,137 |
| Net realized and unrealized gain |
32,323,333 |
24,819,065 |
15,318,621 |
2,281,969 |
| NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS |
$91,299,420 |
$53,100,664 |
$30,726,585 |
$35,321,553 |
| (a) Related to TOB Trusts and/or VRDP
Shares. | ||||
See notes to financial statements.
Financial Statements 55
Statements of Operations (continued) Year Ended July 31,
2026
| |
MPA |
BHV |
| INVESTMENT INCOME |
|
|
| Dividends — affiliated |
$247,238
|
$29,090
|
| Interest — unaffiliated |
11,860,110 |
1,346,902 |
| Total investment income |
12,107,348 |
1,375,992 |
| EXPENSES |
|
|
| Investment advisory |
1,268,209 |
193,635 |
| Reorganization |
113,522 |
89,406 |
| Professional |
72,074 |
43,012 |
| Rating agency |
60,251 |
56,058 |
| Accounting services |
51,951 |
11,386 |
| Transfer agent |
28,403 |
11,347 |
| Directors and Officer |
11,205 |
2,430 |
| Proxy |
10,892 |
— |
| Registration |
8,962 |
8,963 |
| Printing and postage |
6,840 |
4,628 |
| Custodian |
2,677 |
452 |
| Miscellaneous |
14,008 |
12,341 |
| Total expenses excluding interest expense, fees and amortization of offering costs |
1,648,994 |
433,658 |
| Interest expense, fees and amortization of offering costs(a) |
3,354,130 |
398,583 |
| Total expenses |
5,003,124 |
832,241 |
| Less fees waived and/or reimbursed by the Manager |
(9,972 ) |
(40,002 ) |
| Total expenses after fees waived and/or reimbursed |
4,993,152 |
792,239 |
| Net investment income |
7,114,196 |
583,753 |
| REALIZED AND UNREALIZED GAIN (LOSS) |
|
|
| Net realized loss from: |
|
|
| Investments — unaffiliated |
(2,233,238 ) |
(10,944 ) |
| |
(2,233,238 ) |
(10,944 ) |
| Net change in unrealized appreciation (depreciation) on: |
|
|
| Investments — unaffiliated |
8,426,047 |
650,018 |
| Net realized and unrealized gain |
6,192,809 |
639,074 |
| NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS |
$13,307,005 |
$1,222,827 |
| (a) Related to TOB Trusts and/or VRDP
Shares. | ||
See notes to financial statements.
56
2026 BlackRock Annual Report to Shareholders
Statements of Changes in Net Assets
| |
MUC |
MUJ | ||
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/26 |
Year Ended 07/31/25
|
| | ||||
| INCREASE (DECREASE) IN NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS |
|
|
|
|
| OPERATIONS |
|
|
|
|
| Net investment income |
$58,976,087
|
$46,024,335
|
$28,281,599
|
$26,033,087
|
| Net realized gain (loss) |
1,329,200 |
(20,230,283 ) |
(1,410,683 ) |
(7,267,398 ) |
| Net change in unrealized appreciation (depreciation) |
30,994,133 |
(100,019,977 ) |
26,229,748 |
(44,708,522 ) |
| Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations |
91,299,420 |
(74,225,925 ) |
53,100,664 |
(25,942,833 ) |
| DISTRIBUTIONS TO COMMON
SHAREHOLDERS(a) |
|
|
|
|
| From net investment income |
(65,586,045 ) |
(41,082,868 ) |
(30,905,478 ) |
(23,150,193 ) |
| Return of capital |
(3,125,524 ) |
(18,441,371 ) |
(3,558,465 ) |
(10,888,269 ) |
| Decrease in net assets resulting from distributions to Common Shareholders |
(68,711,569 ) |
(59,524,239 ) |
(34,463,943 ) |
(34,038,462 ) |
| CAPITAL SHARE TRANSACTIONS |
|
|
|
|
| Net proceeds from the issuance of common shares due to reorganization |
361,949,867 |
— |
— |
— |
| Redemption of common shares due to reorganization |
(433 ) |
— |
— |
— |
| Net increase in net assets derived from capital share transactions |
361,949,434 |
— |
— |
— |
| NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS |
|
|
|
|
| Total increase (decrease) in net assets applicable to Common Shareholders |
384,537,285 |
(133,750,164 ) |
18,636,721 |
(59,981,295 ) |
| Beginning of year |
1,052,283,776 |
1,186,033,940 |
634,892,385 |
694,873,680 |
| End of year |
$1,436,821,061 |
$1,052,283,776 |
$653,529,106 |
$634,892,385 |
| (a) |
Distributions for annual periods determined in accordance with U.S. federal income tax
regulations. |
See notes to financial statements.
Financial Statements 57
Statements of Changes in Net Assets (continued)
| |
MIY |
MYN | ||
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/26 |
Year Ended 07/31/25
|
| | ||||
| INCREASE (DECREASE) IN NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS |
|
|
|
|
| OPERATIONS |
|
|
|
|
| Net investment income |
$15,407,964
|
$13,643,826
|
$33,039,584
|
$16,684,303
|
| Net realized gain (loss) |
145,415 |
(4,757,875 ) |
(1,166,168 ) |
(12,757,857 ) |
| Net change in unrealized appreciation (depreciation) |
15,173,206 |
(29,677,392 ) |
3,448,137 |
(38,414,360 ) |
| Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations |
30,726,585 |
(20,791,441 ) |
35,321,553 |
(34,487,914 ) |
| DISTRIBUTIONS TO COMMON
SHAREHOLDERS(a) |
|
|
|
|
| From net investment income |
(17,085,512 ) |
(12,401,682 ) |
(37,827,081 ) |
(14,985,049 ) |
| Return of capital |
(1,862,229 ) |
(6,077,828 ) |
— |
(8,018,200 ) |
| Decrease in net assets resulting from distributions to Common Shareholders |
(18,947,741 ) |
(18,479,510 ) |
(37,827,081 ) |
(23,003,249 ) |
| CAPITAL SHARE TRANSACTIONS |
|
|
|
|
| Net proceeds from the issuance of common shares due to reorganization |
— |
— |
606,806,505 |
— |
| Reinvestment of common distributions |
199,381 |
— |
— |
— |
| Redemption of common shares due to reorganization |
— |
— |
(850 ) |
— |
| Net increase in net assets derived from capital share transactions |
199,381 |
— |
606,805,655 |
— |
| NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS |
|
|
|
|
| Total increase (decrease) in net assets applicable to Common Shareholders |
11,978,225 |
(39,270,951 ) |
604,300,127 |
(57,491,163 ) |
| Beginning of year |
339,678,815 |
378,949,766 |
391,849,436 |
449,340,599 |
| End of year |
$351,657,040 |
$339,678,815 |
$996,149,563 |
$391,849,436 |
| (a) |
Distributions for annual periods determined in accordance with U.S. federal income tax
regulations. |
See notes to financial statements.
58
2026 BlackRock Annual Report to Shareholders
Statements of Changes in Net Assets (continued)
| |
MPA |
BHV | ||
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/26 |
Year Ended 07/31/25
|
| | ||||
| INCREASE (DECREASE) IN NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS |
|
|
|
|
| OPERATIONS |
|
|
|
|
| Net investment income |
$7,114,196
|
$5,879,844
|
$583,753
|
$545,412
|
| Net realized loss |
(2,233,238 ) |
(2,332,753 ) |
(10,944 ) |
(403,998 ) |
| Net change in unrealized appreciation (depreciation) |
8,426,047 |
(11,160,663 ) |
650,018 |
(1,634,487 ) |
| Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations |
13,307,005 |
(7,613,572 ) |
1,222,827 |
(1,493,073 ) |
| DISTRIBUTIONS TO COMMON
SHAREHOLDERS(a) |
|
|
|
|
| From net investment income |
(7,753,688 ) |
(5,098,019 ) |
(739,475 ) |
(561,676 ) |
| Return of capital |
(606,593 ) |
(5,158,088 ) |
(165,859 ) |
(381,739 ) |
| Decrease in net assets resulting from distributions to Common Shareholders |
(8,360,281 ) |
(10,256,107 ) |
(905,334 ) |
(943,415 ) |
| CAPITAL SHARE TRANSACTIONS |
|
|
|
|
| Reinvestment of common distributions |
— |
— |
6,997 |
— |
| NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS |
|
|
|
|
| Total increase (decrease) in net assets applicable to Common Shareholders |
4,946,724 |
(17,869,679 ) |
324,490 |
(2,436,488 ) |
| Beginning of year |
150,934,399 |
168,804,078 |
17,380,028 |
19,816,516 |
| End of year |
$155,881,123 |
$150,934,399 |
$17,704,518 |
$17,380,028 |
| (a) |
Distributions for annual periods determined in accordance with U.S. federal income tax
regulations. |
See notes to financial statements.
Financial Statements 59
Statements of Cash Flows Year Ended July 31, 2026
| |
MUC |
MUJ |
MIY |
MYN |
| CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES |
|
|
|
|
| Net increase in net assets resulting from operations |
$91,299,420
|
$53,100,664
|
$30,726,585
|
$35,321,553
|
| Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating
activities: |
|
|
|
|
| Proceeds from sales of long-term investments and principal paydowns/payups |
571,684,306 |
176,756,799 |
88,449,632 |
143,166,231 |
| Purchases of long-term investments |
(545,039,792 ) |
(129,754,799 ) |
(90,176,423 ) |
(186,575,951 ) |
| Net proceeds from sales (purchases) of short-term securities |
(26,507,253 ) |
(30,770,908 ) |
2,515,028 |
17,915,803 |
| Amortization of premium and accretion of discount on investments and other fees |
2,264,309 |
(1,324,859 ) |
1,259,700 |
231,839 |
| Net realized (gain) loss on investments |
(1,329,200 ) |
1,410,683 |
(145,415 ) |
(50,797 ) |
| Net unrealized (appreciation) depreciation on investments |
(30,994,133 ) |
(26,229,748 ) |
(15,173,206 ) |
(2,704,509 ) |
| (Increase) Decrease in Assets |
|
|
|
|
| Receivables |
|
|
|
|
| Dividends — affiliated |
(111,357 ) |
(24,489 ) |
5,116 |
39,035 |
| Interest — unaffiliated |
(5,205,176 ) |
(173,838 ) |
(150,484 ) |
(2,483,972 ) |
| Prepaid expenses |
(75,627 ) |
(9,281 ) |
(4,922 ) |
(266,359 ) |
| Increase (Decrease) in Liabilities |
|
|
|
|
| Payables |
|
|
|
|
| Accounting services fees |
(54,032 ) |
(25,395 ) |
(17,088 ) |
(79,699 ) |
| Custodian fees |
(6,476 ) |
(2,210 ) |
(1,095 ) |
(6,962 ) |
| Interest expense and fees |
718,678 |
(27,637 ) |
— |
1,085,917 |
| Investment advisory fees |
(60,733 ) |
7,631 |
7,779 |
(148,559 ) |
| Directors’ and Officer’s fees |
(7,020 ) |
19,936 |
(306 ) |
(21,762 ) |
| Other accrued expenses |
82,228 |
(5,935 ) |
(6,139 ) |
193,731 |
| Professional fees |
33,015 |
5,096 |
31,774 |
19,088 |
| Reorganization costs |
(125,200 ) |
— |
(63,218 ) |
(478,713 ) |
| Transfer agent fees |
(17,870 ) |
(911 ) |
(5,804 ) |
(28,517 ) |
| Variation margin on futures contracts |
— |
— |
— |
(49,001 ) |
| Net cash provided by operating activities |
56,548,087 |
42,950,799 |
17,251,514 |
5,078,396 |
| CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES |
|
|
|
|
| Cash dividends paid to Common Shareholders |
(63,951,767 ) |
(31,831,849 ) |
(17,262,863 ) |
(35,928,485 ) |
| Repayments of TOB Trust Certificates |
(8,355,843 ) |
(11,186,096 ) |
— |
(2,750,000 ) |
| Proceeds from TOB Trust Certificates |
17,749,992 |
— |
— |
22,168,764 |
| Decrease in bank overdraft |
(4,569,215 ) |
— |
— |
— |
| Amortization of deferred offering costs |
18,604 |
67,146 |
11,349 |
28,636 |
| Net cash used for financing activities |
(59,108,229 ) |
(42,950,799 ) |
(17,251,514 ) |
(16,481,085 ) |
| CASH |
|
|
|
|
| Net decrease in restricted and unrestricted cash |
(2,560,142 ) |
— |
— |
(11,402,689 ) |
| Restricted and unrestricted cash at beginning of year |
2,560,142 |
— |
— |
11,402,689 |
| Restricted and unrestricted cash at end of year |
$— |
$— |
$— |
$— |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
|
|
|
| Cash paid during the year for interest expense |
$22,347,915 |
$11,502,552 |
$7,906,837 |
$13,743,787 |
| NON-CASH FINANCING ACTIVITIES |
|
|
|
|
| Reinvestment of common distributions |
$— |
$— |
$199,381 |
$— |
| Fair value of investments acquired through reorganization |
607,277,389 |
— |
— |
1,020,974,067 |
| Net proceeds from the issuance of common shares due to reorganization |
361,949,867 |
— |
— |
606,806,505 |
| Net proceeds from the issuance of preferred shares due to reorganization |
171,300,000 |
— |
— |
304,000,000 |
See notes to financial statements.
60
2026 BlackRock Annual Report to Shareholders
Statements of Cash Flows (continued) Year Ended July 31,
2026
| |
MPA |
BHV |
| CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES |
|
|
| Net increase in net assets resulting from operations |
$13,307,005
|
$1,222,827
|
| Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: |
|
|
| Proceeds from sales of long-term investments and principal paydowns/payups |
80,665,507 |
3,526,588 |
| Purchases of long-term investments |
(62,058,325 ) |
(3,386,629 ) |
| Net proceeds from sales (purchases) of short-term securities |
(9,617,180 ) |
222,420 |
| Amortization of premium and accretion of discount on investments and other fees |
(64,909 ) |
(20,020 ) |
| Net realized loss on investments |
2,233,238 |
10,944 |
| Net unrealized (appreciation) depreciation on investments |
(8,426,047 ) |
(650,018 ) |
| (Increase) Decrease in Assets |
|
|
| Receivables |
|
|
| Dividends — affiliated |
(20,186 ) |
170 |
| Interest — unaffiliated |
(160,157 ) |
(20,013 ) |
| Prepaid expenses |
(4,922 ) |
(9,147 ) |
| Increase (Decrease) in Liabilities |
|
|
| Payables |
|
|
| Accounting services fees |
(8,823 ) |
(2,786 ) |
| Custodian fees |
(636 ) |
(753 ) |
| Interest expense and fees |
(7,229 ) |
— |
| Investment advisory fees |
(547 ) |
267 |
| Directors’ and Officer’s fees |
521 |
848 |
| Other accrued expenses |
(4,835 ) |
(1,437 ) |
| Professional fees |
38,101 |
17,163 |
| Reorganization costs |
(75,444 ) |
(75,478 ) |
| Transfer agent fees |
(11,566 ) |
(6,313 ) |
| Net cash provided by operating activities |
15,783,566 |
828,633 |
| CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES |
|
|
| Cash dividends paid to Common Shareholders |
(7,784,342 ) |
(831,704 ) |
| Repayments of TOB Trust Certificates |
(8,016,188 ) |
— |
| Amortization of deferred offering costs |
16,964 |
3,071 |
| Net cash used for financing activities |
(15,783,566 ) |
(828,633 ) |
| CASH |
|
|
| Net increase in restricted and unrestricted cash |
— |
— |
| Restricted and unrestricted cash at beginning of year |
— |
— |
| Restricted and unrestricted cash at end of year |
$— |
$— |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
|
| Cash paid during the year for interest expense |
$3,344,395 |
$395,512 |
| NON-CASH FINANCING ACTIVITIES |
|
|
| Reinvestment of common distributions |
$— |
$6,997 |
See notes to financial statements.
Financial Statements 61
Financial Highlights (For a share outstanding throughout each period)
| |
MUC | ||||
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Year Ended
07/31/22 |
| | |||||
| Net asset value, beginning of year |
$11.17 |
$12.59 |
$12.68 |
$13.42 |
$16.16 |
| Net investment income(a) |
0.54 |
0.49 |
0.43 |
0.43 |
0.58 |
| Net realized and unrealized gain (loss) |
0.42 |
(1.28 ) |
0.00 (b) |
(0.69 ) |
(2.66 ) |
| Net increase (decrease) from investment operations |
0.96 |
(0.79 ) |
0.43 |
(0.26 ) |
(2.08 ) |
| Distributions to Common Shareholders(c) |
|
|
|
|
|
| From net investment income |
(0.61 ) |
(0.43 ) |
(0.47 ) |
(0.42 ) |
(0.66 ) |
| Return of capital |
(0.03 ) |
(0.20 ) |
(0.05 ) |
(0.06 ) |
— |
| Total distributions to Common Shareholders |
(0.64 ) |
(0.63 ) |
(0.52 ) |
(0.48 ) |
(0.66 ) |
| Net asset value, end of year |
$11.49 |
$11.17 |
$12.59 |
$12.68 |
$13.42 |
| Market price, end of year |
$10.58 |
$10.06 |
$11.15 |
$10.85 |
$12.58 |
| Total Return Applicable to Common Shareholders(d) |
|
|
|
|
|
| Based on net asset value |
9.17 % |
(5.97 )% |
4.21 % |
(1.27 )% |
(12.92 )% |
| Based on market price |
11.62 % |
(4.37 )% |
7.86 % |
(9.87 )% |
(18.01 )% |
| Ratios to Average Net Assets Applicable to Common Shareholders(e) |
|
|
|
|
|
| Total expenses |
3.22 %(f) |
3.32 %(g) |
3.33 % |
2.93 % |
1.75 %(h) |
| Total expenses after fees waived and/or reimbursed |
3.19 %(f) |
3.22 %(g) |
3.28 % |
2.87 % |
1.69 %(h) |
| Total expenses after fees waived and/or reimbursed and excluding interest expense and fees,
amortization of offering costs and/or reorganization costs(i)(j) |
1.36 % |
1.19 % |
0.86 % |
0.89 % |
0.92 % |
| Net investment income to Common Shareholders |
4.64 % |
4.04 % |
3.47 % |
3.42 % |
4.08 % |
| Supplemental Data |
|
|
|
|
|
| Net assets applicable to Common Shareholders, end of year (000) |
$1,436,821 |
$1,052,284 |
$1,186,034 |
$1,209,826 |
$1,309,300 |
| VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$697,700 |
$526,400 |
$— |
$— |
$— |
| Asset coverage per VRDP Shares at $100,000 liquidation value, end of year |
$245,702
(k) |
$244,044
(k) |
$— |
$— |
$— |
| VMTP Shares outstanding at $100,000 liquidation value, end of year (000) |
$— |
$— |
$526,400 |
$526,400 |
$526,400 |
| Asset coverage per VMTP Shares at $100,000 liquidation value, end of year |
$— |
$— |
$276,078
(l) |
$293,143
(l) |
$249,806
(l) |
| TOB Trust Certificates, end of year (000) |
$288,435 |
$204,130 |
$147,185 |
$99,990 |
$347,600 |
| Asset coverage per $1,000 of TOB Trust Certificates, end of year(m) |
$8,399 |
$8,731 |
$12,635 |
$18,364 |
$6,281 |
| Portfolio turnover rate |
26 % |
54 % |
59 % |
47 % |
41 % |
| (a) |
Based on average Common Shares outstanding. |
| (b) |
Amount is less than $0.005 per share. |
| (c) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (d) |
Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where
applicable, excludes the effects of any sales charges and assumes the reinvestment
of distributions at actual reinvestment prices. |
| (e) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (f) |
Includes non-recurring expenses of reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 3.18%
and 3.15%, respectively. |
| (g) |
Includes non-recurring expenses of reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 3.29%
and 3.19%, respectively. |
| (h) |
Includes non-recurring expenses of reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 1.71%
and 1.65%, respectively. |
| (i) |
Interest expense and fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for
details. |
| (j) |
The total expense ratio after fees waived and/or reimbursed and excluding interest expense and fees, amortization of offering costs, reorganization costs, liquidity and
remarketing fees as follows: |
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Year Ended
07/31/22 |
| | |||||
| Expense ratios |
0.97 % |
0.87 % |
0.86 % |
0.89 % |
0.92 % |
| (k) |
Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares/TOBs) from the
Fund’s total assets and dividing this by sum of amount of
TOBs and liquidation value of the VRDP Shares, and by multiplying the results by
100,000. |
62
2026 BlackRock Annual Report to Shareholders
Financial Highlights (continued) (For a share
outstanding throughout each period)
| (l) |
Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares and TOBs) from the
Trust’s total assets and dividing this by the sum of the
amount of TOBs and liquidation value of the VMTP Shares, and by
multiplying the results by 100,000. |
| (m) |
Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including
VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by
multiplying the results by 1,000. |
See notes to financial
statements.
Financial Highlights 63
Financial Highlights (continued) (For a share
outstanding throughout each period)
| |
MUJ | ||||
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Year Ended
07/31/22 |
| | |||||
| Net asset value, beginning of year |
$11.94 |
$13.07 |
$13.03 |
$13.58 |
$16.29 |
| Net investment income(a) |
0.53 |
0.49 |
0.44 |
0.48 |
0.64 |
| Net realized and unrealized gain (loss) |
0.47 |
(0.98 ) |
0.15 |
(0.49 ) |
(2.59 ) |
| Net increase (decrease) from investment operations |
1.00 |
(0.49 ) |
0.59 |
(0.01 ) |
(1.95 ) |
| Distributions to Common Shareholders(b) |
|
|
|
|
|
| From net investment income |
(0.58 ) |
(0.44 ) |
(0.49 ) |
(0.45 ) |
(0.76 ) |
| Return of capital |
(0.07 ) |
(0.20 ) |
(0.06 ) |
(0.09 ) |
— |
| Total distributions to Common Shareholders |
(0.65 ) |
(0.64 ) |
(0.55 ) |
(0.54 ) |
(0.76 ) |
| Net asset value, end of year |
$12.29 |
$11.94 |
$13.07 |
$13.03 |
$13.58 |
| Market price, end of year |
$11.97 |
$10.82 |
$11.57 |
$11.20 |
$13.36 |
| Total Return Applicable to Common Shareholders(c) |
|
|
|
|
|
| Based on net asset value |
8.65 % |
(3.41 )% |
5.34 % |
0.52 % |
(12.14 )% |
| Based on market price |
16.77 % |
(1.12 )% |
8.49 % |
(12.17 )% |
(9.91 )% |
| Ratios to Average Net Assets Applicable to Common Shareholders(d) |
|
|
|
|
|
| Total expenses |
3.14 % |
3.40 % |
3.68 % |
3.17 % |
1.77 %(e) |
| Total expenses after fees waived and/or reimbursed |
3.13 % |
3.37 % |
3.64 % |
3.17 % |
1.74 %(e) |
| Total expenses after fees waived and/or reimbursed and excluding interest expense and fees, amortization
of offering costs and/or reorganization costs(f)(g) |
1.40 % |
1.25 % |
0.86 % |
0.89 % |
0.92 % |
| Net investment income to Common Shareholders |
4.25 % |
3.87 % |
3.45 % |
3.71 % |
4.37 % |
| Supplemental Data |
|
|
|
|
|
| Net assets applicable to Common Shareholders, end of year (000) |
$653,529 |
$634,892 |
$694,874 |
$699,848 |
$740,380 |
| VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$417,100 |
$417,100 |
$417,100 |
$417,100 |
$417,100 |
| Asset coverage per VRDP Shares at $100,000 liquidation value, end of year(h) |
$252,407 |
$244,296 |
$259,234 |
$259,361 |
$245,762 |
| TOB Trust Certificates, end of year (000) |
$11,706 |
$22,892 |
$19,285 |
$22,060 |
$90,838 |
| Asset coverage per $1,000 of TOB Trust Certificates, end of year(i) |
$92,411 |
$46,927 |
$58,624 |
$51,599 |
$13,734 |
| Portfolio turnover rate |
12 % |
22 % |
14 % |
17 % |
20 % |
| (a) |
Based on average Common Shares outstanding. |
| (b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) |
Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where
applicable, excludes the effects of any sales charges and assumes the reinvestment
of distributions at actual reinvestment prices. |
| (d) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (e) |
Includes non-recurring expenses of reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 1.71%
and 1.70%, respectively. |
| (f) |
Interest expense and fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for
details. |
| (g) |
The total expense ratio after fees waived and/or reimbursed and excluding interest expense and fees, amortization of offering costs, reorganization costs, liquidity and
remarketing fees as follows: |
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Year Ended
07/31/22 |
| | |||||
| Expense ratios |
0.89 % |
0.88 % |
0.85 % |
0.88 % |
0.94 % |
| (h) |
Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by
100,000. |
| (i) |
Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including
VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by
multiplying the results by 1,000. |
See notes to financial
statements.
64
2026 BlackRock Annual Report to Shareholders
Financial Highlights (continued) (For a share
outstanding throughout each period)
| |
MIY | ||||
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Year Ended
07/31/22 |
| | |||||
| Net asset value, beginning of year |
$11.73 |
$13.08 |
$12.94 |
$13.56 |
$16.04 |
| Net investment income(a) |
0.53 |
0.47 |
0.42 |
0.42 |
0.61 |
| Net realized and unrealized gain (loss) |
0.52 |
(1.18 ) |
0.23 |
(0.55 ) |
(2.42 ) |
| Net increase (decrease) from investment operations |
1.05 |
(0.71 ) |
0.65 |
(0.13 ) |
(1.81 ) |
| Distributions to Common Shareholders(b) |
|
|
|
|
|
| From net investment income |
(0.59 ) |
(0.43 ) |
(0.46 ) |
(0.43 ) |
(0.67 ) |
| Return of capital |
(0.06 ) |
(0.21 ) |
(0.05 ) |
(0.06 ) |
— |
| Total distributions to Common Shareholders |
(0.65 ) |
(0.64 ) |
(0.51 ) |
(0.49 ) |
(0.67 ) |
| Net asset value, end of year |
$12.13 |
$11.73 |
$13.08 |
$12.94 |
$13.56 |
| Market price, end of year |
$12.20 |
$10.91 |
$11.61 |
$11.12 |
$13.67 |
| Total Return Applicable to Common Shareholders(c) |
|
|
|
|
|
| Based on net asset value |
9.23 % |
(5.24 )% |
5.82 % |
(0.40 )% |
(11.35 )% |
| Based on market price |
18.11 % |
(0.71 )% |
9.30 % |
(15.09 )% |
(9.28 )% |
| Ratios to Average Net Assets Applicable to Common Shareholders(d) |
|
|
|
|
|
| Total expenses |
3.16 %(e) |
3.38 %(f) |
3.66 %(g) |
3.27 % |
1.66 % |
| Total expenses after fees waived and/or reimbursed |
3.16 %(e) |
3.34 %(f) |
3.62 %(g) |
3.27 % |
1.66 % |
| Total expenses after fees waived and/or reimbursed and excluding interest expense and fees, amortization of
offering costs and/or reorganization costs(h)(i) |
0.89 % |
0.86 % |
0.85 % |
0.91 % |
0.88 % |
| Net investment income to Common Shareholders |
4.31 % |
3.74 % |
3.28 % |
3.31 % |
4.10 % |
| Supplemental Data |
|
|
|
|
|
| Net assets applicable to Common Shareholders, end of year (000) |
$351,657 |
$339,679 |
$378,950 |
$378,173 |
$400,206 |
| VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$231,900 |
$231,900 |
$231,900 |
$231,900 |
$231,900 |
| Asset coverage per VRDP Shares at $100,000 liquidation value, end of year(j) |
$251,642 |
$246,476 |
$263,411 |
$258,740 |
$246,506 |
| TOB Trust Certificates, end of year (000) |
$— |
$— |
$— |
$6,334 |
$41,267 |
| Asset coverage per $1,000 of TOB Trust Certificates, end of year(k) |
N/A |
N/A |
N/A |
$97,262 |
$16,309 |
| Portfolio turnover rate |
15 % |
37 % |
27 % |
37 % |
22 % |
| (a) |
Based on average Common Shares outstanding. |
| (b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) |
Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where
applicable, excludes the effects of any sales charges and assumes the reinvestment
of distributions at actual reinvestment prices. |
| (d) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (e) |
Includes non-recurring expenses of reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 3.11%
and 3.11% ,respectively. |
| (f) |
Includes non-recurring expenses of reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 3.32%
and 3.29%, respectively. |
| (g) |
Includes non-recurring expenses of reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 3.64%
and 3.60%, respectively. |
| (h) |
Interest expense and fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for
details. |
| (i) |
The total expense ratio after fees waived and/or reimbursed and excluding interest expense and fees, amortization of offering costs, reorganization costs, liquidity and
remarketing fees as follows: |
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Year Ended
07/31/22 |
| | |||||
| Expense ratios |
0.89 % |
0.86 % |
0.87 % |
0.91 % |
0.88 % |
| (j) |
Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by
100,000. |
| (k) |
Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including
VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by
multiplying the results by 1,000. |
See notes to financial
statements.
Financial Highlights 65
Financial Highlights (continued) (For a share
outstanding throughout each period)
| |
MYN | ||||
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Year Ended
07/31/22 |
| | |||||
| Net asset value, beginning of year |
$10.23 |
$11.73 |
$11.70 |
$12.12 |
$14.73 |
| Net investment income(a) |
0.51 |
0.44 |
0.37 |
0.39 |
0.52 |
| Net realized and unrealized gain (loss) |
0.45 |
(1.34 ) |
0.14 |
(0.39 ) |
(2.53 ) |
| Net increase (decrease) from investment operations |
0.96 |
(0.90 ) |
0.51 |
— |
(2.01 ) |
| Distributions to Common Shareholders(b) |
|
|
|
|
|
| From net investment income |
(0.61 ) |
(0.39 ) |
(0.41 ) |
(0.37 ) |
(0.60 ) |
| Return of capital |
— |
(0.21 ) |
(0.07 ) |
(0.05 ) |
— |
| Total distributions to Common Shareholders |
(0.61 ) |
(0.60 ) |
(0.48 ) |
(0.42 ) |
(0.60 ) |
| Net asset value, end of year |
$10.58 |
$10.23 |
$11.73 |
$11.70 |
$12.12 |
| Market price, end of year |
$9.70 |
$9.20 |
$10.58 |
$10.08 |
$10.94 |
| Total Return Applicable to Common Shareholders(c) |
|
|
|
|
|
| Based on net asset value |
9.99 % |
(7.45 )% |
5.14 % |
0.64 % |
(13.74 )% |
| Based on market price |
12.13 % |
(7.71 )% |
10.07 % |
(3.94 )% |
(21.23 )% |
| Ratios to Average Net Assets Applicable to Common Shareholders(d) |
|
|
|
|
|
| Total expenses |
3.23 %(e) |
3.30 %(f) |
3.57 %(g) |
3.07 % |
1.59 % |
| Total expenses after fees waived and/or reimbursed |
3.23 %(e) |
3.28 %(f) |
3.54 %(g) |
3.07 % |
1.59 % |
| Total expenses after fees waived and/or reimbursed and excluding interest expense and fees, amortization of
offering costs and/or reorganization costs(h)(i) |
1.07 % |
0.90 % |
0.86 % |
0.89 % |
1.24 % |
| Net investment income to Common Shareholders |
4.73 % |
3.90 % |
3.26 % |
3.42 % |
3.91 % |
| Supplemental Data |
|
|
|
|
|
| Net assets applicable to Common Shareholders, end of year (000) |
$996,150 |
$391,849 |
$449,341 |
$452,980 |
$479,869 |
| VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$505,000 |
$201,000 |
$247,700 |
$247,700 |
$247,700 |
| Asset coverage per VRDP Shares at $100,000 liquidation value, end of year(j) |
$238,834 |
$245,097 |
$272,392 |
$269,699 |
$256,882 |
| TOB Trust Certificates, end of year (000) |
$212,510 |
$69,061 |
$12,950 |
$19,231 |
$58,179 |
| Asset coverage per $1,000 of TOB Trust Certificates, end of year(k) |
$8,063 |
$9,582 |
$54,810 |
$37,423 |
$13,502 |
| Portfolio turnover rate |
12 % |
53 % |
43 % |
40 % |
31 % |
| (a) |
Based on average Common Shares outstanding. |
| (b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) |
Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where
applicable, excludes the effects of any sales charges and assumes the reinvestment
of distributions at actual reinvestment prices. |
| (d) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (e) |
Includes non-recurring expenses of proxy and reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have
been 3.20% and 3.20%, respectively. |
| (f) |
Includes non-recurring expenses of proxy and reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have
been 3.21% and 3.19%, respectively. |
| (g) |
Includes non-recurring expenses of proxy costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 3.50% and
3.47%, respectively. |
| (h) |
Interest expense and fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for
details. |
| (i) |
The total expense ratio after fees waived and/or reimbursed and excluding interest expense and fees, amortization of offering costs, reorganization costs, liquidity and
remarketing fees as follows: |
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Year Ended
07/31/22 |
| | |||||
| Expense ratios |
0.90 % |
0.90 % |
0.93 % |
0.89 % |
0.88 % |
| (j) |
Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by
100,000. |
| (k) |
Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including
VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by
multiplying the results by 1,000. |
See notes to financial
statements.
66
2026 BlackRock Annual Report to Shareholders
Financial Highlights (continued) (For a share
outstanding throughout each period)
| |
MPA | ||||
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Year Ended
07/31/22 |
| | |||||
| Net asset value, beginning of year |
$11.66 |
$13.04 |
$13.09 |
$13.92 |
$16.64 |
| Net investment income(a) |
0.55 |
0.45 |
0.38 |
0.40 |
0.59 |
| Net realized and unrealized gain (loss) |
0.48 |
(1.04 ) |
0.13 |
(0.76 ) |
(2.65 ) |
| Net increase (decrease) from investment operations |
1.03 |
(0.59 ) |
0.51 |
(0.36 ) |
(2.06 ) |
| Distributions to Common Shareholders(b) |
|
|
|
|
|
| From net investment income |
(0.60 ) |
(0.39 ) |
(0.45 ) |
(0.40 ) |
(0.66 ) |
| Return of capital |
(0.05 ) |
(0.40 ) |
(0.11 ) |
(0.07 ) |
— |
| Total distributions to Common Shareholders |
(0.65 ) |
(0.79 ) |
(0.56 ) |
(0.47 ) |
(0.66 ) |
| Net asset value, end of year |
$12.04 |
$11.66 |
$13.04 |
$13.09 |
$13.92 |
| Market price, end of year |
$10.90 |
$10.66 |
$12.35 |
$11.69 |
$13.54 |
| Total Return Applicable to Common Shareholders(c) |
|
|
|
|
|
| Based on net asset value |
9.33 % |
(4.29 )% |
4.43 % |
(2.05 )% |
(12.45 )% |
| Based on market price |
8.27 % |
(7.61 )% |
10.75 % |
(10.08 )% |
(12.69 )% |
| Ratios to Average Net Assets Applicable to Common Shareholders(d) |
|
|
|
|
|
| Total expenses |
3.14 %(e) |
3.29 %(f) |
3.52 %(g) |
3.02 % |
1.63 % |
| Total expenses after fees waived and/or reimbursed |
3.14 %(e) |
3.23 %(f) |
3.47 %(g) |
3.01 % |
1.63 % |
| Total expenses after fees waived and/or reimbursed and excluding interest expense and fees, amortization of
offering costs and/or reorganization costs(h)(i) |
0.95 % |
0.92 % |
0.88 % |
0.95 % |
1.24 % |
| Net investment income to Common Shareholders |
4.47 % |
3.60 % |
2.94 % |
3.10 % |
3.85 % |
| Supplemental Data |
|
|
|
|
|
| Net assets applicable to Common Shareholders, end of year (000) |
$155,881 |
$150,934 |
$168,804 |
$170,467 |
$185,332 |
| VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$82,600 |
$82,600 |
$82,600 |
$82,600 |
$82,600 |
| Asset coverage per VRDP Shares at $100,000 liquidation value, end of year(j) |
$266,816 |
$248,761 |
$287,227 |
$276,357 |
$248,524 |
| TOB Trust Certificates, end of year (000) |
$10,845 |
$18,861 |
$7,560 |
$14,060 |
$42,183 |
| Asset coverage per $1,000 of TOB Trust Certificates, end of year(k) |
$22,974 |
$13,372 |
$34,227 |
$18,983 |
$7,346 |
| Portfolio turnover rate |
24 % |
37 % |
18 % |
31 % |
18 % |
| (a) |
Based on average Common Shares outstanding. |
| (b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) |
Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where
applicable, excludes the effects of any sales charges and assumes the reinvestment
of distributions at actual reinvestment prices. |
| (d) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (e) |
Includes non-recurring expenses of proxy and reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have
been 3.06% and 3.06%, respectively. |
| (f) |
Includes non-recurring expenses of proxy and reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have
been 3.10% and3.05%, respectively. |
| (g) |
Includes non-recurring expenses of proxy and reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have
been 3.33% and3.28%, respectively. |
| (h) |
Interest expense and fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for
details. |
| (i) |
The total expense ratio after fees waived and/or reimbursed and excluding interest expense and fees, amortization of offering costs, reorganization costs, liquidity and
remarketing fees as follows: |
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Year Ended
07/31/22 |
| | |||||
| Expense ratios |
0.95 % |
0.92 % |
1.07 % |
0.95 % |
0.93 % |
| (j) |
Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by
100,000. |
| (k) |
Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including
VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by
multiplying the results by 1,000. |
See notes to financial
statements.
Financial Highlights 67
Financial Highlights (continued) (For a share
outstanding throughout each period)
| |
BHV | |||||
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Period from
09/01/21
to 07/31/22 |
Year Ended
08/31/21 |
| | ||||||
| Net asset value, beginning of period |
$10.94 |
$12.48 |
$12.44 |
$13.32 |
$15.73 |
$15.38 |
| Net investment income(a) |
0.37 |
0.34 |
0.29 |
0.35 |
0.46 |
0.54 |
| Net realized and unrealized gain (loss) |
0.40 |
(1.29 ) |
0.17 |
(0.85 ) |
(2.37 ) |
0.36 |
| Net increase (decrease) from investment operations |
0.77 |
(0.95 ) |
0.46 |
(0.50 ) |
(1.91 ) |
0.90 |
| Distributions to Common Shareholders(b) |
|
|
|
|
|
|
| From net investment income |
(0.47 ) |
(0.35 ) |
(0.38 ) |
(0.32 ) |
(0.50 ) |
(0.55 ) |
| Return of capital |
(0.10 ) |
(0.24 ) |
(0.04 ) |
(0.06 ) |
— |
— |
| Total distributions to Common Shareholders |
(0.57 ) |
(0.59 ) |
(0.42 ) |
(0.38 ) |
(0.50 ) |
(0.55 ) |
| Net asset value, end of period |
$11.14 |
$10.94 |
$12.48 |
$12.44 |
$13.32 |
$15.73 |
| Market price, end of period |
$12.81 |
$10.45 |
$11.11 |
$10.78 |
$14.41 |
$18.75 |
| Total Return Applicable to Common Shareholders(c) |
|
|
|
|
|
|
| Based on net asset value |
7.21 % |
(7.44 )% |
4.38 % |
(3.42 )% |
(12.61 )%(d) |
5.76 % |
| Based on market price |
29.06 % |
(0.68 )% |
7.23 % |
(22.64 )% |
(20.69 )%(d) |
20.50 % |
| Ratios to Average Net Assets Applicable to Common Shareholders(e) |
|
|
|
|
|
|
| Total expenses |
4.58 %(f) |
4.75 %(g) |
5.16 %(h) |
4.43 % |
2.60 %(i)(j) |
2.28 % |
| Total expenses after fees waived and/or reimbursed |
4.36 %(f) |
4.53 %(g) |
4.93 %(h) |
4.20 % |
2.38 %(i)(j) |
2.06 % |
| Total expenses after fees waived and/or reimbursed and excluding interest expense and
fees, amortization of offering costs and/or reorganization costs(k)(l) |
1.67 % |
1.75 % |
1.74 % |
1.74 % |
1.55 %(i)(j) |
1.43 % |
| Net investment income to Common Shareholders |
3.21 % |
2.87 % |
2.38 % |
2.82 % |
3.52 %(j) |
3.49 % |
| Supplemental Data |
|
|
|
|
|
|
| Net assets applicable to Common Shareholders, end of period (000) |
$17,705 |
$17,380 |
$19,817 |
$19,956 |
$21,460 |
$25,326 |
| VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |
$11,600 |
$11,600 |
$11,600 |
$11,600 |
$11,600 |
$11,600 |
| Asset coverage per VRDP Shares at $100,000 liquidation value, end of period |
$252,625
(m) |
$249,828
(m) |
$270,832
(m) |
$246,737
(m) |
$246,984
(m) |
$318,324
(n) |
| TOB Trust Certificates, end of period (000) |
$— |
$— |
$— |
$2,000 |
$3,000 |
$4,876 |
| Asset coverage per $1,000 of TOB Trust Certificates, end of period(o) |
N/A |
N/A |
N/A |
$16,755 |
$12,003 |
N/A |
| Portfolio turnover rate |
12 % |
18 % |
46 % |
31 % |
39 % |
10 % |
| (a) |
Based on average Common Shares outstanding. |
| (b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) |
Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where
applicable, excludes the effects of any sales charges and assumes the reinvestment
of distributions at actual reinvestment prices. |
| (d) |
Not annualized. |
| (e) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (f) |
Includes non-recurring expenses of reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 4.09%
and 3.87%, respectively. |
| (g) |
Includes non-recurring expenses of reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 4.31%
and 4.10%, respectively. |
| (h) |
Includes non-recurring expenses of reorganization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 4.68%
and 4.45%, respectively. |
| (i) |
Audit and printing costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses, total expenses after fees
waived and/or reimbursed and total expenses after fees waived and/or reimbursed and
excluding interest expense, fees and amortization of offering costs would have been 2.62%, 2.40% and 1.57%, respectively. |
| (j) |
Annualized. |
| (k) |
Interest expense and fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for
details. |
| (l) |
The total expense ratio after fees waived and/or reimbursed and excluding interest expense and fees, amortization of offering costs, reorganization costs, liquidity and
remarketing fees as follows: |
68
2026 BlackRock Annual Report to Shareholders
Financial Highlights (continued) (For a share
outstanding throughout each period)
| |
Year Ended
07/31/26 |
Year Ended
07/31/25 |
Year Ended
07/31/24 |
Year Ended
07/31/23 |
Period from
09/01/21
to 07/31/22 |
Year Ended
08/31/21 |
| | ||||||
| Expense ratios |
1.67 % |
1.75 % |
2.22 % |
1.74 % |
1.55 % |
1.43 % |
| (m) |
Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VRDP Shares, and by multiplying the results by
100,000. |
| (n) |
Calculated by subtracting the Fund’s total liabilities (not including VRDP Shares) from the Fund’s total assets and dividing this by the liquidation value of the VRDP Shares, and by multiplying
the results by 100,000. |
| (o) |
Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Fund’s total liabilities (not including
VRDP Shares and TOBs) from the Fund’s total assets and dividing this by the amount of TOBs, and by
multiplying the results by 1,000. |
See notes to financial
statements.
Financial Highlights 69
Notes
to Financial Statements
1.
ORGANIZATION
The
following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to
herein collectively as the “Funds”, or individually as a “Fund”:
| Fund Name |
Herein Referred To As |
Organized |
Diversification Classification |
| BlackRock MuniHoldings California Quality Fund, Inc. |
MUC |
Maryland |
Diversified |
| BlackRock MuniHoldings New Jersey Quality Fund, Inc. |
MUJ |
Maryland |
Non-diversified |
| BlackRock MuniYield Michigan Quality Fund, Inc. |
MIY |
Maryland |
Non-diversified |
| BlackRock MuniYield New York Quality Fund, Inc. |
MYN |
Maryland |
Non-diversified |
| BlackRock MuniYield Pennsylvania Quality Fund |
MPA |
Massachusetts |
Non-diversified |
| BlackRock Virginia Municipal Bond Trust |
BHV |
Delaware |
Non-diversified |
The Boards of Directors and Boards of Trustees of the Funds are
collectively referred to throughout this report as the “Board,” and the directors/trustees thereof are collectively referred to throughout this
report as “Directors”. The Funds determine and make available for publication the net asset values (“NAVs”) of their Common Shares on a daily
basis.
The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a
complex of funds referred to as the BlackRock Fixed-Income Complex.
Reorganizations: The Board and shareholders
of each Acquiring Fund and each Target Fund approved the respective reorganizations of the Target Funds into the Acquiring Funds. As a result, each
Acquiring Fund acquired substantially all of the assets and assumed substantially all of the liabilities of the respective Target Funds in exchange for an equal aggregate
value of newly-issued Common Shares and Preferred Shares of the Acquiring Fund. The reorganizations were as follows:
| Acquiring Funds |
Target Funds |
Herein Referred To As |
| MUC(a) |
BlackRock California Municipal Income Trust |
BFZ |
| MYN(a) |
BlackRock New York Municipal Income Trust |
BNY
|
| |
BlackRock MuniHoldings New York Quality Fund, Inc. |
MHN |
| (a) |
The
reorganizations were effective after the close of business on February 6, 2026. |
Each Common Shareholder of each Target Fund received Common Shares of the respective Acquiring Fund in an amount equal to the aggregate NAV of such Common Shareholder’s
Target Fund Common Shares, as determined at the close of business on the effective date of the reorganization, less the costs of the Target Fund’s reorganization. Cash was distributed for any fractional shares.
Each Preferred Shareholder of each Target Fund received Preferred
Shares of the Acquiring Fund in an amount equal to the aggregate liquidation preference of the Target Fund Preferred Shares held by such Preferred Shareholder prior to the
Target Fund’s reorganization.
Each
reorganization was accomplished by a tax-free exchange of Common Shares and Preferred Shares of the Acquiring Fund in the following amounts and at the following conversion
ratios:
| Target Fund |
Target Fund’s Share Class |
Shares Prior to Reorganization |
Conversion Ratio |
MUC’s Share Class |
Shares of MUC |
| BFZ |
Common |
30,063,645 |
1.02530147 |
Common |
30,824,262 (a) |
| BFZ |
VRDP |
1,713 |
1 |
VRDP |
1,713 |
| Target Funds |
Target Fund’s Share Class |
Shares Prior to Reorganization |
Conversion Ratio |
MYN’s Share Class |
Shares of MYN |
| BNY |
Common |
24,117,105 |
1.02143002 |
Common |
24,633,900 (a) |
| MHN |
Common |
30,241,637 |
1.03091257 |
Common |
31,176,439 (a) |
| BNY |
VRDP |
1,320 |
1 |
VRDP |
1,320 |
| MHN |
VRDP |
1,720 |
1 |
VRDP |
1,720 |
| (a) |
Net of
fractional shares redeemed. |
70
2026 BlackRock
Annual Report to Shareholders
Notes
to Financial Statements (continued)
Each Target Fund’s net assets and composition of net assets on the effective date of the reorganizations
were as follows:
| Target Funds |
Net assets applicable to Common Shareholders |
Paid-in-capital |
Accumulated gain (loss) |
| BFZ |
$ 361,949,867
|
$ 409,342,093
|
$ (47,392,226
) |
| BNY |
267,835,831 |
320,630,411 |
(52,794,580 ) |
| MHN |
338,970,674 |
410,263,376 |
(71,292,702 ) |
For financial reporting purposes, assets received and shares issued by each of the Acquiring Funds were recorded at fair value. However, the cost basis of the investments
received from each of the Target Funds was carried forward to align ongoing reporting of the respective Acquiring Fund’s realized and unrealized gains
and losses with amounts distributable to shareholders for tax purposes.
The net assets applicable to Common Shareholders of the Acquiring Funds before the reorganizations and the aggregate net assets
applicable to Common Shareholders immediately after the reorganizations were as follows:
| |
Net assets applicable to Common Shareholders | |
| Acquiring Funds |
Prior to the Reorganization |
After the Reorganization |
| MUC |
$ 1,105,943,991
|
$ 1,467,893,858
|
| MYN |
416,563,252 |
1,023,369,757 |
Each Target Fund’s fair value and cost of financial instruments prior to the
reorganizations were as follows:
| Target Funds |
Fair Value of Investments |
Cost of Investments |
TOB Trust Certificates |
Preferred Shares Value |
| BFZ |
$ 607,277,389
|
$ 601,264,821
|
$ 80,299,992
|
$ 171,300,000
|
| BNY |
450,911,244 |
445,161,293 |
58,860,521 |
132,000,000 |
| MHN |
570,062,823 |
561,291,396 |
65,169,298 |
172,000,000 |
The purpose of these transactions was to combine multiple funds
managed by the Manager with the same or substantially similar (but not identical) investment objectives, investment policies, strategies, risks and restrictions. Each
reorganization was a tax-free event.
Assuming
the reorganizations had been completed on August 1, 2025, the beginning of the fiscal reporting period of each Acquiring Fund, the pro forma results of operations for the
year ended July 31, 2026, are as follows:
| Acquiring Funds |
Net investment income (loss) |
Net realized and change in unrealized gain/loss on investments |
Net increase in net assets resulting from operations |
| MUC |
$ 66,760,284
|
$ 56,660,165
|
$ 123,420,449
|
| MYN |
45,978,729 |
42,663,888 |
88,642,617 |
Because the combined investment portfolios of each Acquiring Fund
have been managed as a single integrated portfolio since the reorganizations were completed, it is not practicable to separate the amounts of revenue and
earnings of each Target Fund that have been included in the respective Acquiring Fund’s Statements of Operations since the reorganization date.
Reorganization costs incurred by each Acquiring Fund in
connection with the reorganizations were expensed by such Fund. The Manager reimbursed MUC in the amount of $373,037, which is included in fees waived and/or reimbursed by
the Manager in the Statements of Operations.
2.
SIGNIFICANT ACCOUNTING POLICIES
The
financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and
reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates
the transactions are executed.
Realized gains and losses on investment transactions are
determined using the specific identification method. Dividend income and
capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair
value. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.
Notes to Financial Statements 71
Notes
to Financial Statements (continued)
Cash:
The Funds may maintain cash at their custodian, which at times may exceed United States federally insured limits. The Funds may, at times, have outstanding cash disbursements that exceed deposited cash amounts at the custodian during the reporting period. The Funds are obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statements of Operations.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
Distributions: Distributions from net investment income are declared quarterly and paid monthly.
Distributions of capital gains are recorded on the ex-dividend dates and made
at least annually. The portion of distributions, if any, that exceeds a
fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. The character and timing of
distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Distributions to Preferred Shareholders are accrued and determined as described in
Note 10.
Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each
Fund’s Board, the directors who are not “interested persons” of the Funds, as defined in the 1940 Act (“Independent Directors”),
may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been
invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Directors. This has the same economic effect for
the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.
The Plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of
each Fund, as applicable. Deferred compensation liabilities, if any, are included in the Directors’ and Officer’s fees payable in
the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan. Net appreciation (depreciation)
in the value of participants’ deferral accounts is allocated among the participating funds in the BlackRock Fixed-Income Complex and reflected as
Directors and Officer expense on the Statements of Operations. The Directors and Officer expense may be negative as a result of a decrease in value of the deferred
accounts.
Indemnifications: In the normal course of
business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a
Fund, which cannot be predicted with any certainty.
Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.
The Funds have an arrangement with their custodian whereby credits are earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges.
Segment Reporting: The Chief Financial Officer acts as the Funds’ Chief Operating Decision Maker (“CODM”) and is responsible for assessing performance and
allocating resources with respect to each Fund. The CODM has concluded that each Fund operates as a single operating segment since each Fund has a single investment strategy as disclosed in its prospectus, against which the CODM
assesses performance. The financial information provided to and reviewed by the CODM is presented within each Fund’s financial statements.
Recent Accounting Standard: The Funds adopted Financial Accounting Standards
Board Update 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures (“ASU 2023-09”) during the period. ASU 2023-09
enhances income tax disclosures, including disclosure of income taxes paid disaggregated by jurisdiction. The Funds’ adoption of the new standard did not have a material impact on financial statement disclosures and did
not affect each Fund’s financial position or results of operations.
3.
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
Investment Valuation Policies: Each Fund’
s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to
transfer a liability in an orderly transaction between market participants at the measurement date. The Board has approved the designation of each Fund’s Manager as the valuation designee for each Fund.
Each Fund determines the fair values of its financial instruments using
various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not
otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as
reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing
function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the
fair value of each Fund’s assets and liabilities:
•Fixed-income investments and certain derivative instruments for which market quotations are readily available are generally valued using the last available bid price (including evaluated prices) provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities are sold could differ from the prices used by a fund. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including
asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a
benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The
72
2026 BlackRock
Annual Report to Shareholders
Notes
to Financial Statements (continued)
amortized cost method of valuation may be used with respect to debt
obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.
•Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s NAV.
•Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.
If events (e.g., market volatility, company announcement or a
natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation
results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the
investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued
Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach.
Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in
determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might
reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value
determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement as of the
measurement date.
For investments
in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of,
but not limited to, the following inputs:
(i) recent market transactions, including secondary market transactions, merger or acquisition activity and subsequent rounds of financing in the
underlying investment or comparable issuers
(ii) recapitalizations and other transactions across the capital structure
(iii) market or relevant indices multiples of comparable
issuers
(iv) future cash flows discounted to
present and adjusted as appropriate for liquidity, credit, and/or market risks
(v) quoted prices for similar investments or assets in active markets
(vi) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates,
liquidation amounts and/or default rates
(vii) audited or unaudited financial statements, investor communications and Private Company financial or operational metrics
(viii) relevant market news and other public sources.
Investments in series of preferred stock issued by Private
Companies are typically valued utilizing a market approach to determine the enterprise value of the company. Such investments often contain rights and
preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model
(“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate under the circumstances. The use of these valuation techniques involves a determination of the exit scenarios of the investment in order to appropriately allocate the
enterprise value of the company among the various parts of its capital structure.
Private Companies are not subject to public company disclosure, timing, and reporting standards applicable to other investments held
by a Fund. Certain information made available by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This
factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments at the measurement date. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
•Level 1 – Unadjusted price quotations in active markets/exchanges that each Fund has the ability to access for identical assets or liabilities;
•Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
•Level 3 – Inputs that are unobservable and significant to the entire fair value measurement for the asset or liability (including the Valuation Committee’s
assumptions used in determining the fair value of financial instruments).
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is
greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such
cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value
measurement in its entirety. Investments classified within Level 3 have
significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or
debt issued by Private Companies that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the
pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
Notes to Financial Statements 73
Notes
to Financial Statements (continued)
4.
SECURITIES AND OTHER INVESTMENTS
Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.
Warrants: Warrants entitle a fund to purchase a specified number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any. If the price of the underlying stock does not rise above the strike price
before the warrant expires, the warrant generally expires without any value and a fund will lose any amount it paid for the warrant. Thus, investments in
warrants may involve more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the
warrant does not necessarily move with the price of the underlying stock.
Forward Commitments, When-Issued and Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on
a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may
purchase securities under such conditions with the intention of actually acquiring them but may enter into a separate agreement to sell the securities before
the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the
security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery
basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the
counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions. These types of securities may be considered unfunded and may obligate the Funds to make future cash payments. An unfunded commitment is marked-to-market and any unrealized appreciation (depreciation) is separately presented in the Statements of Assets and Liabilities and Statements of Operations.
Municipal Bonds Transferred to TOB Trusts: The Funds leverage their assets through the use of “TOB Trust” transactions. The funds
transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating
rate interests (“TOB Trust Certificates”), which are sold to third-party investors, and residual inverse floating rate interests (“TOB
Residuals”), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest
rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each
reset date. The TOB Residuals held by a fund provide the fund with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender
their certificates to the TOB Trust at par plus accrued interest. The funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other
funds managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a fund has contributed bonds. If multiple
BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds ratably
in proportion to their participation in the TOB Trust.
TOB Trusts are supported by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity
Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any
business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a
loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB
Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.
The TOB Trust may be collapsed without the consent of a fund,
upon the occurrence of a termination event as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated
with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain
termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Funds) whereas in other termination events, TOB Trust Certificates
holders and TOB Residuals holders will be paid pro rata.
While a fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability
of a fund to borrow money for purposes of making investments.MIY’s,
MYN’s and
MPA’s management believes that a fund’s restrictions on borrowings do not apply to the
Funds’ TOB Trust transactions. Each Fund’s
transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the
sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a Fund.
A Fund typically invests the cash received in additional municipal
bonds.
Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are
presented in a Fund’s Schedule of Investments and the TOB Trust
Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to
purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a Fund’s payable to the holder of the TOB Trust Certificates, as reported in the
Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.
Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by
a Fund on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as
interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt
issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the
restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a Fund incurred non-recurring, legal and restructuring fees, which are recorded as
interest expense, fees and amortization of offering costs in the Statements of Operations. Amounts recorded within interest expense, fees and amortization of offering costs in
the Statements of Operations are:
| Fund Name |
Interest Expense |
Liquidity Fees |
Other Expenses |
Total |
| MUC |
$ 6,137,374
|
$ 882,531
|
$ 322,953
|
$ 7,342,858
|
| MUJ |
456,591 |
74,139 |
17,879 |
548,609 |
74
2026 BlackRock
Annual Report to Shareholders
Notes
to Financial Statements (continued)
| Fund Name |
Interest Expense |
Liquidity Fees |
Other Expenses |
Total |
| MYN |
$ 3,608,147
|
$ 467,143
|
$ 209,308
|
$ 4,284,598
|
| MPA |
431,633 |
64,690 |
24,523 |
520,846 |
For the year ended July 31, 2026, the following table is a summary of each Fund’s TOB
Trusts:
| Fund Name |
Underlying Municipal Bonds Transferred to TOB Trusts(a)
|
Liability for TOB Trust Certificates(b)
|
Range of Interest Rates on TOB Trust Certificates at Period End |
Average TOB Trust Certificates Outstanding |
Daily Weighted Average Rate of Interest and Other Expenses on TOB Trusts |
| MUC |
$ 462,676,223
|
$ 288,434,986 |
2.16% — 2.65
% |
$ 248,127,108 |
2.96 % |
| MUJ |
19,657,972 |
11,706,105 |
2.17 —
2.19 |
18,184,213 |
3.02 |
| MYN |
302,412,819 |
212,509,990 |
2.19 —
2.22 |
146,053,358 |
2.93 |
| MPA |
16,272,957 |
10,845,100 |
2.19 |
17,082,353 |
3.05 |
| (a) |
The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal
bonds, the TOB Trust transaction may include a credit enhancement feature
that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the Funds, as TOB Residuals holders,
would be responsible for reimbursement of any payments of principal and
interest made by the credit enhancement provider. The maximum potential amounts owed by the Funds, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts in the Schedules of Investments. |
| (b) |
TOB Trusts may be structured on a non-recourse or recourse basis. When a fund invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to
make a payment under the liquidity facility to allow the TOB Trust to
repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a Fund invests in a TOB Trust on a recourse basis,
a Fund enters into a reimbursement
agreement with the Liquidity Provider where a Fund is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the
“Liquidation Shortfall”). As a result, if a Fund invests in a recourse TOB Trust, a Fund will bear the risk of loss with respect to any
Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a Fund at July 31, 2026, in proportion to their
participation in the TOB Trust. The recourse TOB Trusts are identified in the
Schedules of Investments including the maximum potential amounts owed by a Fund at July 31, 2026. |
5.
DERIVATIVE FINANCIAL INSTRUMENTS
The Funds engage in various portfolio investment strategies using derivative contracts to increase the returns of the Funds and/or
to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or
other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be
transacted on an exchange or over-the-counter (“OTC”).
Futures Contracts: Futures contracts are purchased or sold to gain exposure to,
or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency
exchange rate risk).
Futures contracts are
exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a
specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or
securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established
level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and
Liabilities.
Securities deposited as initial
margin are designated in the Schedules of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets
and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market
value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation
margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is
recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount
at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates,
foreign currency exchange rates or underlying assets.
6.
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory: Each Fund entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, majority-owned subsidiary of BlackRock, Inc.
(“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the
operations of each Fund.
For such services, each
Fund, except BHV, pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net
assets:
| |
MUC |
MUJ |
MIY |
MYN |
MPA |
| Investment advisory fees |
0.55 % |
0.50
% |
0.49
% |
0.50
% |
0.49 % |
For purposes of calculating these fees, “net assets” mean the total assets of the Fund minus the sum of its accrued liabilities (which does not include
liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is understood that the liquidation preference of
any outstanding preferred stock (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Fund’s NAV.
Notes to Financial Statements 75
Notes
to Financial Statements (continued)
For such services, BHV pays the Manager a monthly fee at an annual rate equal to 0.65% of the average weekly
value of the Fund’s managed assets.
For
purposes of calculating these fees, for BHV, “managed assets” are determined as total assets of the Fund (including any assets attributable to money borrowed for investment purposes) less the sum of its accrued
liabilities (other than money borrowed for investment purposes).
Expense Waivers and Reimbursements: With respect to BHV, the Manager voluntarily agreed to waive a portion of its investment advisory fees equal to the annual rate of 0.13% of the Fund’s average weekly managed assets. This voluntary waiver may be reduced or discontinued at any time. This amount is included in fees waived and/or
reimbursed by the Manager in the Statements of Operations. During the year ended July 31, 2026, the Manager waived $38,727 pursuant to this agreement.
With respect to each Fund, the Manager contractually agreed to
waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated
money market funds (the “affiliated money market fund waiver") through June 30, 2028. The contractual agreement may be terminated upon 90 days’
notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of a Fund. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of
Operations. For the year ended July 31, 2026, the amounts waived were as follows:
| Fund Name |
Fees Waived and/or Reimbursed by the Manager |
| MUC |
$ 70,414
|
| MUJ |
25,325 |
| MIY |
4,246 |
| MYN |
12,551 |
| MPA |
9,972 |
| BHV |
1,275 |
The Manager contractually agreed to waive its investment advisory
fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2028. The agreement can be renewed for annual periods thereafter, and
may be terminated on 90 days’ notice, each subject to approval by a majority of the Funds’
Independent Directors. For the year ended July 31, 2026, there were no fees waived by the Manager
pursuant to this arrangement.
With respect to
each Fund, the Manager voluntarily agreed to waive a portion of its investment advisory fee attributable to each Fund’s outstanding preferred shares for each month in which the monthly dividend on the Fund’s preferred shares exceeds the calculated value of the Fund’s gross monthly income attributable to investments
from the proceeds of the preferred shares (determined by multiplying the Fund’s gross monthly income by the ratio of (i) the liquidation preference of
any outstanding preferred shares to (ii) total assets of the Fund minus the sum of its accrued liabilities (which does not include liabilities represented by
TOB Trusts and the liquidation preference of any outstanding preferred shares). This voluntary waiver may be reduced or discontinued at any time without
notice. For the year ended July 31, 2026, there were no fees waived by the Manager pursuant to this arrangement.
Directors and Officers: Certain directors and/or officers of the Funds are directors and/or officers of BlackRock or its affiliates. The Funds
reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Directors and Officer in the Statements of Operations.
7.
PURCHASES AND SALES
For the year ended July
31, 2026, purchases and sales of investments, excluding short-term
securities, were as follows:
| Fund Name |
Purchases |
Sales |
| MUC |
$ 530,194,641
|
$ 571,850,444
|
| MUJ |
129,754,799 |
176,761,799 |
| MIY |
90,176,423 |
88,449,632 |
| MYN |
182,749,152 |
138,375,596 |
| MPA |
58,375,132 |
76,582,214 |
| BHV |
3,386,629 |
3,526,588 |
8.
INCOME TAX INFORMATION
It is
each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to
regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is
required.
Each Fund files U.S. federal and various state and local tax returns. No income tax
returns are currently under examination. The statute of limitations on
each Fund’s U.S. federal
tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on each Fund’s state and local tax
returns may remain open for an additional year depending upon the jurisdiction.
Management has analyzed tax laws and regulations and their application to the Funds as of July 31, 2026, inclusive of the open tax return
years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements. Management’s analysis is based on the tax laws and judicial and administrative interpretations thereof in effect as of the date of these financial statements, all of which are subject to change, possibly with retroactive effect,
which may impact the Funds’ NAV.
76
2026 BlackRock
Annual Report to Shareholders
Notes
to Financial Statements (continued)
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. These reclassifications have no effect on net assets or NAVs per share. As of period end, permanent
differences attributable to amortization methods for premiums on fixed income securities and non-deductible expenses were reclassified to the following accounts:
| Fund Name |
Paid-in Capital |
Accumulated Earnings (Loss) |
| MUC |
$ (254,107
) |
$ 254,107
|
| MUJ |
(62,049 ) |
62,049 |
| MIY |
(182,894 ) |
182,894 |
| MYN |
(218,625 ) |
218,625 |
| MPA |
(125,939 ) |
125,939 |
| BHV |
(91,988 ) |
91,988 |
The tax character of distributions paid was as follows:
| Fund Name |
Year Ended 07/31/26 |
Year Ended 07/31/25 |
| MUC |
|
|
| Tax-exempt income |
$ 80,963,680
|
$ 57,794,280
|
| Ordinary income |
346,100 |
95,406 |
| Return of capital |
3,125,524 |
18,441,371 |
| |
$ 84,435,304 |
$ 76,331,057 |
| MUJ |
|
|
| Tax-exempt income |
$ 41,831,784
|
$ 36,763,436
|
| Ordinary income |
— |
5,732 |
| Return of capital |
3,558,465 |
10,888,269 |
| |
$ 45,390,249 |
$ 47,657,437 |
| MIY |
|
|
| Tax-exempt income |
$ 24,977,774
|
$ 21,273,337
|
| Ordinary income |
14,575 |
— |
| Return of capital |
1,862,229 |
6,077,828 |
| |
$ 26,854,578 |
$ 27,351,165 |
| MYN |
|
|
| Tax-exempt income |
$ 48,324,866
|
$ 24,372,053
|
| Ordinary income |
47,321 |
24,701 |
| Return of capital |
— |
8,018,200 |
| |
$ 48,372,187 |
$ 32,414,954 |
| MPA |
|
|
| Tax-exempt income |
$ 10,570,008
|
$ 8,249,931 |
| Ordinary income |
— |
8,065 |
| Return of capital |
606,593 |
5,158,088 |
| |
$ 11,176,601 |
$ 13,416,084 |
| BHV |
|
|
| Tax-exempt income |
$ 1,134,987 |
$ 1,005,309 |
| Ordinary income |
— |
141 |
| Return of capital |
165,859 |
381,739 |
| |
$ 1,300,846 |
$ 1,387,189 |
As of July 31, 2026, the tax components of accumulated earnings (loss) were as follows:
| Fund Name |
Non-Expiring Capital Loss Carryforwards(a) |
Net Unrealized Gains (Losses)(b) |
Total |
| MUC |
$ (264,807,550 ) |
$ (16,913,645 ) |
$ (281,721,195
) |
| MUJ |
(57,517,523 ) |
(20,600,451 ) |
(78,117,974 ) |
| MIY |
(40,682,193
) |
(8,807,564
) |
(49,489,757 ) |
| MYN |
(226,389,633 ) |
(5,930,802 ) |
(232,320,435 ) |
| MPA |
(21,486,774
) |
(4,126,972
) |
(25,613,746 ) |
| BHV |
(3,683,105 ) |
(361,892 ) |
(4,044,997 ) |
| (a) |
Subject to limitations, amounts available to offset future realized capital gains. |
| (b) |
The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, amortization
methods for premiums on fixed income securities, treatment of residual interests in
tender option bond trusts, the accural of income on securities in default and the deferral of compensation to trustees. |
Notes to Financial Statements 77
Notes
to Financial Statements (continued)
During the year ended July 31, 2026, the Funds listed below utilized the following amounts of their respective capital loss
carryforwards:
| Fund Name |
Utilized |
| MIY |
$ 299,833
|
As of July 31, 2026,
gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as
follows:
| Fund Name |
Tax Cost |
Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
| MUC |
$ 2,125,403,921
|
$ 30,102,917
|
$ (39,634,889
) |
$ (9,531,972
) |
| MUJ |
1,082,289,138 |
14,104,071 |
(31,745,207 ) |
(17,641,136 ) |
| MIY |
586,218,206 |
3,728,979 |
(10,957,095 ) |
(7,228,116 ) |
| MYN |
1,495,382,680 |
26,177,673 |
(27,685,661 ) |
(1,507,988 ) |
| MPA |
240,626,033 |
2,144,129 |
(5,640,838 ) |
(3,496,709 ) |
| BHV |
29,323,482 |
368,193 |
(646,771 ) |
(278,578 ) |
9.
PRINCIPAL RISKS
In the normal course of business,
each Fund invests in securities or other instruments and may enter into certain transactions,
and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments
may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global
political and/or social instability; (iii) regulation, taxation, tariffs or international tax treaties between various countries; or (iv) currency, interest
rate or price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues,
recessions, or other events could have a significant impact on the Funds and their investments.
The Funds may hold a significant amount of bonds subject to
calls by the issuers at defined dates and prices. When bonds are called by issuers and the Funds reinvest the proceeds received, such investments may be
in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Fund.
A Fund structures and “sponsors” the TOB Trusts in
which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance,
securities law and operational risks.
As
short-term interest rates rise, the Funds’ investments in the TOB Trusts may adversely affect
the Funds’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds’ NAVs per share.
The U.S. Securities and Exchange Commission (“SEC”)
and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The
Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB
Trust’s municipal bonds. The Risk Retention Rules may adversely affect the
Funds’ ability to engage in TOB Trust transactions or increase the costs of such transactions
in certain circumstances.
TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal
market and the Funds, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate
impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.
Illiquidity Risk: Each Fund may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. A Fund may not be able to readily dispose of such investments at prices that approximate those at which
a Fund could sell such investments if they were more widely traded and, as a result of such illiquidity, a Fund may have to sell other investments or
engage in borrowing transactions if necessary to raise funds to meet its obligations. Limited liquidity can also affect the market price of investments,
thereby adversely affecting a Fund’s NAV and ability to make dividend distributions. Privately issued debt securities are often of below investment
grade quality, frequently are unrated and present many of the same risks as investing in below investment grade public debt securities.
Market Risk: Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the
risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at
market interest rates that are below each Fund portfolio’s current earnings rate.
Municipal securities are subject to the risk that litigation,
legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a
significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal
securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as
uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders, including in connection with an
issuer insolvency. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the
discontinuance of the tax benefits supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal
securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of municipal security issuers than for
issuers of other securities.
78
2026 BlackRock Annual Report to Shareholders
Notes
to Financial Statements (continued)
Valuation Risk: The price a Fund could receive upon the sale of any particular portfolio
investment may differ from a Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to
significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may
significantly impact the resulting fair value and therefore a Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may
fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or
otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes
have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially
expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The
extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to
these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the
value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not
perform under the contract.
With
exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While
offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a
default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that
is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event
that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing
broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses
to the Funds.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s
objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within
each Fund’s portfolio are disclosed in its Schedule of
Investments.
The Funds invest a substantial amount of their assets in issuers located in a single
state or limited number of states. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political or social
conditions affecting that state or group of states could have a significant impact on the fund and could affect the income from, or the value or liquidity of, the
fund’s portfolio. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.
Certain Funds invest a
significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this
manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and
could affect the income from, or the value or liquidity of, the Fund’s portfolio. Investment percentages in specific sectors are presented in the Schedules of
Investments.
Certain Funds invest a significant portion of their assets in high yield securities. High
yield securities that are rated below investment-grade (commonly referred to as “junk bonds”) or are unrated may be deemed speculative, involve
greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield securities may be issued by less
creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield securities are
subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have redemption
features.
The Funds invest a significant
portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic
conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. The Funds may be subject to a greater risk of rising interest rates during a period of historically low interest
rates. Changing interest rates may have unpredictable effects on markets, may result in heightened market volatility, and could negatively impact the Funds’ performance.
The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed
and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of
certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which
may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as
reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global
financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United
States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in
which the Funds invest.
10.
CAPITAL SHARE TRANSACTIONS
MPA and
BHV are authorized to issue an unlimited number of shares, all of which were initially classified as Common Shares. MUC, MUJ, MIY and MYN are authorized to issue
200 million shares, all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10, except for BHV for
which it is $0.001. The par value for MUC’s, MUJ’s, MIY’s and MYN’s Preferred Shares outstanding is $0.10. The par value for
MPA’s Preferred Shares outstanding is $0.05. The par value for BHV’s Preferred Shares outstanding is $0.001. The Board is authorized, however, to
reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders. MPA is authorized to issue 1 million Preferred Shares.
Notes to Financial Statements 79
Notes
to Financial Statements (continued)
Common Shares
For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:
| |
Year Ended | |
| Fund Name |
07/31/26 |
07/31/25 |
| MIY |
15,957 |
— |
| BHV |
586 |
— |
MUC and MYN have adopted a discount management program (the
"Program"), which consists of one measurement period beginning on January 1, 2026 and ending on September 30, 2026. Under the Program, each Fund intends
to offer to repurchase a portion of its common shares via tender offer if the Fund’s common
shares trade at an average daily discount to NAV of more than 10% during the 9-month measurement period. If the discount trigger is met and a tender offer is
conducted, there is no guarantee that shareholders will be able to sell all of the shares that they desire to sell in such tender offer and there can be no
assurance as to the effect that the Program will have on the market for a Fund’s shares or the discount at which a Fund’s shares may trade relative to its NAV.
For the year ended July 31, 2026, Common Shares of MUC issued and outstanding increased by 30,824,299 as a result of the reorganization of BFZ with and into MUC.
For the year ended July 31, 2026, Common Shares of MUC issued and
outstanding decreased by 37 as a result of a redemption of fractional shares from the reorganization of BFZ with and into MUC.
For the year ended July 31, 2026, Common Shares of MYN issued and
outstanding increased by 55,810,419 as a result of the reorganization of BNY and MHN with and into MYN.
For the year ended July 31, 2026, Common Shares of MYN issued and
outstanding decreased by 80 as a result of a redemption of fractional shares from the reorganization of BNY and MHN with and into MYN.
For the year ended July 31, 2026, shares issued and outstanding remained constant
for MUJ and MPA.
For the year ended July 31, 2025, shares
issued and outstanding remained constant for all Funds.
Preferred Shares
The Fund’s
Preferred Shares rank prior to its Common Shares as to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of the Fund. The 1940 Act prohibits the declaration of any dividend on Common Shares or the repurchase of Common Shares if the Fund fails to maintain asset coverage of at least 200%
of the liquidation preference of the Fund’s outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, the Fund is restricted from declaring and paying dividends on classes of
shares ranking junior to or on parity with its Preferred Shares or repurchasing such shares if the Fund fails to declare and pay dividends on the Preferred
Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares’ governing instruments or comply with the basic maintenance amount requirement of
the ratings agencies rating the Preferred Shares.
Holders of Preferred Shares have voting rights equal to the voting rights of holders of Common Shares (one vote per share) and vote together with holders of Common Shares
(one vote per share) as a single class on certain matters. Holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members
of the Board, (ii) elect the full Board if dividends on the Preferred Shares are not paid for a period of two years and (iii) a separate class vote to amend
the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred Shares,
voting as a separate class, to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.
VRDP Shares
Each Fund (for purposes of this section, each a “VRDP Fund”) has issued Series W-7 VRDP Shares, $100,000 liquidation preference per share, in one or more
privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”). The VRDP Shares include a liquidity feature and may be subject to a special rate period. As of period end, the VRDP Shares outstanding were as
follows:
| Fund Name |
Issue Date |
Shares Issued |
Aggregate Principal |
Maturity Date |
| MUC |
09/25/24 |
5,264 |
$ 526,400,000
|
09/01/54 |
| |
02/09/26 |
1,713 |
171,300,000 |
09/01/54 |
| MUJ |
06/30/11 |
1,727 |
172,700,000 |
07/01/41 |
| |
04/13/15 |
644 |
64,400,000 |
07/01/41 |
| |
04/11/22 |
1,800 |
180,000,000 |
07/01/41 |
| MIY |
04/21/11 |
1,446 |
144,600,000 |
05/01/41 |
| |
09/14/15 |
873 |
87,300,000 |
05/01/41 |
| MYN |
04/21/11 |
2,010 |
201,000,000 |
05/01/41 |
| |
02/09/26 |
3,040 |
304,000,000 |
02/01/56 |
| MPA |
05/19/11 |
663 |
66,300,000 |
06/01/41 |
| |
04/13/15 |
163 |
16,300,000 |
06/01/41 |
| BHV |
06/14/12 |
116 |
11,600,000 |
07/01/42 |
80
2026 BlackRock
Annual Report to Shareholders
Notes
to Financial Statements (continued)
Redemption Terms: A VRDP Fund is required to redeem its VRDP Shares on the maturity date, unless
earlier redeemed or repurchased. Six months prior to the maturity date, a VRDP Fund is required to begin to segregate liquid assets with the Fund’s custodian to fund the redemption. In addition, a VRDP Fund is required to redeem certain of its outstanding VRDP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.
Subject to certain conditions, the VRDP Shares may also be
redeemed, in whole or in part, at any time at the option of a VRDP Fund. The redemption price per VRDP Share is equal to the liquidation preference per share plus any
outstanding unpaid dividends.
Liquidity Feature: VRDP Shares are subject to
a fee agreement between the VRDP Fund and the liquidity provider that requires a per annum liquidity fee and, in some cases, an upfront or initial commitment
fee, payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations. As of period end, the fee agreement is set to
expire, unless renewed or terminated in advance, as follows:
| |
MUC |
MUJ |
MIY |
MYN |
MPA |
BHV |
| Expiration date |
09/22/27 |
11/27/27 |
07/04/27 |
07/04/27 |
07/04/27 |
07/04/27 |
The VRDP Shares are also subject to a purchase agreement in
connection with the liquidity feature. In the event a purchase agreement is not renewed or is terminated in advance, and the VRDP Shares do not become subject
to a purchase agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the
termination of the purchase agreement. In the event of such mandatory purchase, a VRDP Fund is required to redeem the VRDP Shares six months after the purchase
date. Immediately after such mandatory purchase, the VRDP Fund is required to begin to segregate liquid assets with its custodian to fund the redemption. There is no
assurance that a VRDP Fund will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.
Remarketing: A VRDP Fund may incur remarketing fees on the aggregate principal amount of all its VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. During any special rate period (as described below), the Fund may incur nominal or no remarketing fees.
Ratings: As of period end, the VRDP Shares were assigned the following ratings:
| Fund Name |
Series |
Moody’s Investors Service, Inc. Long-Term Ratings |
Moody’s Investors Service, Inc. Short-Term Ratings |
Fitch Ratings, Inc. Long-Term Ratings |
S&P Global Short-Term Ratings |
| MUC |
W-7 |
Aa2 |
P-1 |
N/A |
A-1 |
| MUJ |
W-7 |
Aa2 |
P-1 |
AA |
A-1 |
| MIY |
W-7 |
Aa2 |
N/A |
AA |
N/A |
| MYN |
W-7 |
Aa2 |
N/A |
AA |
N/A |
| |
W-7A |
Aa2 |
P-1 |
N/A |
A-1 |
| MPA |
W-7 |
Aa2 |
N/A |
AA |
N/A |
| BHV |
W-7 |
Aa2 |
N/A |
AA |
N/A |
Any short-term ratings on VRDP Shares are directly related to the
short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the
short-term credit ratings of the VRDP Shares as rated by Moody’s and S&P Global Ratings. The liquidity provider may be terminated prior to the scheduled termination
date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories.
Special Rate Period: A VRDP Fund has commenced a “special rate period” with respect to its VRDP Shares, during which the VRDP Shares will not be subject to any remarketing and the dividend rate will be based on a predetermined methodology. During a special rate period, short-term ratings on VRDP Shares are withdrawn. As of period
end, the following VRDP Funds have commenced a special rate
period:
| Fund Name |
Commencement Date |
Expiration Date as of Period Ended 07/31/26 |
| MIY |
06/25/20 |
06/16/27 |
| MYN |
06/22/22 |
06/16/27 |
| MPA |
06/22/22 |
06/16/27 |
| BHV |
06/25/20 |
06/16/27 |
Prior to the expiration date, the VRDP Fund and the VRDP Shares
holder may mutually agree to extend the special rate period. If a special rate period is not extended, the VRDP Shares will revert to remarketable securities
upon the termination of the special rate period and will be remarketed and available for purchase by qualified institutional investors.
During the special rate period: (i) the liquidity and fee
agreements remain in effect, (ii) VRDP Shares remain subject to mandatory redemption by the VRDP Fund on the maturity date, (iii) VRDP Shares will not be
remarketed or subject to optional or mandatory tender events, (iv) the VRDP Fund is required to comply with the same asset coverage, basic maintenance amount
and leverage requirements for the VRDP Shares as is required when the VRDP Shares are not in a special rate period, (v) the VRDP Fund will pay dividends
monthly based on the sum of an agreed upon reference rate and a percentage per annum based on the long-term ratings assigned to the VRDP Shares and (vi) the VRDP Fund will
pay nominal or no fees to the liquidity provider and remarketing agent.
Dividends: Except during the Special Rate Period as described above, dividends
on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a
base rate and cannot exceed a maximum rate. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the
dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly based upon either
Notes to Financial Statements 81
Notes
to Financial Statements (continued)
short-term rating. In the event of a failed remarketing, the dividend rate of the VRDP Shares
will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length
of time that the VRDP Shares fail to be remarketed.
For the year ended
July 31, 2026, the annualized dividend rate for the VRDP Shares were as follows:
| |
MUC |
MUJ |
MIY |
MYN |
MPA |
BHV |
| Dividend rates |
2.59 % |
2.62
% |
3.41
% |
3.06
% |
3.41
% |
3.41 % |
During the year ended July 31, 2026, issued and outstanding VRDP Shares increased by 1,713 for MUC and 3,040 for MYN due to the Fund reorganizations.
For the year ended July 31, 2026, VRDP Shares issued and
outstanding remained constant for MUJ, MIY, MPA and BHV.
Offering Costs: The Funds incurred costs in connection with the issuance of VRDP
Shares, which were recorded as a direct deduction from the carrying value of the related debt liability and will be amortized over the life of the VRDP
Shares with the exception of any upfront fees paid by a VRDP Fund to the liquidity provider which, if any, were amortized over the life of the liquidity
agreement. Amortization of these costs is included in interest expense,
fees and amortization of offering costs in the Statements of Operations.
Financial Reporting: The VRDP Shares are
considered debt of the issuer; therefore, the liquidation preference, which approximates fair value of the VRDP Shares, is recorded as a liability in the
Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of
Assets and Liabilities, and the dividends accrued and paid on the VRDP Shares are included as a component of interest expense, fees and amortization of
offering costs in the Statements of Operations. The VRDP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP Shares are
generally classified as tax-exempt income for tax-reporting purposes. Dividends and amortization of deferred offering costs on VRDP Shares are included in
interest expense, fees and amortization of offering costs in the Statements of Operations:
| Fund Name |
Dividends |
Deferred Offering Costs Amortization |
| MUC |
$ 15,723,735
|
$ 18,604
|
| MUJ |
10,926,306 |
67,146 |
| MIY |
7,906,837 |
11,349 |
| MYN |
10,545,106 |
28,636 |
| MPA |
2,816,320 |
16,964 |
| BHV |
395,512 |
3,071 |
11.
SUBSEQUENT EVENTS
Management’s evaluation of the impact of all subsequent
events on the Funds’ financial statements was completed through the date the financial statements were issued and the following
items were noted:
The Funds declared and paid or will pay
distributions to Common Shareholders as follows:
| Fund Name |
Declaration Date |
Record Date |
Payable/ Paid Date |
|
Dividend Per Common Share |
| MUC |
06/05/26 |
07/15/26 |
08/03/26 |
|
$ 0.053500
|
| |
06/05/26 |
08/14/26 |
09/01/26 |
|
0.053500 |
| |
06/05/26 |
09/15/26 |
10/01/26 |
|
0.053500 |
| |
09/10/26 |
10/15/26 |
11/02/26 |
|
0.053500 |
| |
09/10/26 |
11/13/26 |
12/01/26 |
|
0.053500 |
| |
09/10/26 |
12/11/26 |
12/22/26 |
|
0.053500 |
| MUJ |
06/05/26 |
07/15/26 |
08/03/26 |
|
0.054000 |
| |
06/05/26 |
08/14/26 |
09/01/26 |
|
0.054000 |
| |
06/05/26 |
09/15/26 |
10/01/26 |
|
0.054000 |
| |
09/10/26 |
10/15/26 |
11/02/26 |
|
0.054000 |
| |
09/10/26 |
11/13/26 |
12/01/26 |
|
0.054000 |
| |
09/10/26 |
12/11/26 |
12/22/26 |
|
0.054000 |
| MIY |
06/05/26 |
07/15/26 |
08/03/26 |
|
0.054500 |
| |
06/05/26 |
08/14/26 |
09/01/26 |
|
0.054500 |
| |
06/05/26 |
09/15/26 |
10/01/26 |
|
0.054500 |
| |
09/10/26 |
10/15/26 |
11/02/26 |
|
0.054500 |
| |
09/10/26 |
11/13/26 |
12/01/26 |
|
0.054500 |
| |
09/10/26 |
12/11/26 |
12/22/26 |
|
0.054500 |
| MYN |
06/05/26 |
07/15/26 |
08/03/26 |
|
0.051200 |
| |
06/05/26 |
08/14/26 |
09/01/26 |
|
0.051200 |
| |
06/05/26 |
09/15/26 |
10/01/26 |
|
0.051200 |
| |
09/10/26 |
10/15/26 |
11/02/26 |
|
0.051200 |
| |
09/10/26 |
11/13/26 |
12/01/26 |
|
0.051200 |
| |
09/10/26 |
12/11/26 |
12/22/26 |
|
0.051200 |
82
2026 BlackRock
Annual Report to Shareholders
Notes
to Financial Statements (continued)
| Fund Name |
Declaration Date |
Record Date |
Payable/ Paid Date |
|
Dividend Per Common Share |
| MPA |
06/05/26 |
07/15/26 |
08/03/26 |
|
$ 0.047700
|
| |
06/05/26 |
08/14/26 |
09/01/26 |
|
0.047700 |
| |
06/05/26 |
09/15/26 |
10/01/26 |
|
0.047700 |
| |
09/10/26 |
10/15/26 |
11/02/26 |
|
0.047700 |
| |
09/10/26 |
11/13/26 |
12/01/26 |
|
0.047700 |
| |
09/10/26 |
12/11/26 |
12/22/26 |
|
0.047700 |
| BHV |
06/05/26 |
07/15/26 |
08/03/26 |
|
0.045500 |
| |
06/05/26 |
08/14/26 |
09/01/26 |
|
0.045500 |
| |
06/05/26 |
09/15/26 |
10/01/26 |
|
0.045500 |
| |
09/10/26 |
10/15/26 |
11/02/26 |
|
0.045500 |
| |
09/10/26 |
11/13/26 |
12/01/26 |
|
0.045500 |
| |
09/10/26 |
12/11/26 |
12/22/26 |
|
0.045500 |
The Funds declared and paid or will pay distributions to Preferred Shareholders as
follows:
| |
|
|
Preferred Shares(a) | ||
| Fund Name |
|
|
Shares |
Series |
Declared |
| MUC |
|
|
VRDP |
W-7 |
$ 1,268,285
|
| MUJ |
|
|
VDRP |
W-7 |
778,091 |
| MIY |
|
|
VRDP |
W-7 |
578,162 |
| MYN |
|
|
VRDP |
W-7 |
501,123 |
| |
|
|
VRDP |
W-7A |
562,275 |
| MPA |
|
|
VRDP |
W-7 |
205,934 |
| BHV |
|
|
VRDP |
W-7 |
28,921 |
| (a) |
Dividends declared for period August 1, 2026 to August 31, 2026. |
Notes to Financial Statements
83
Report
of Independent Registered Public Accounting Firm
To
the Shareholders and the Board of Trustees/Directors of BlackRock MuniHoldings California Quality Fund, Inc., BlackRock MuniHoldings New Jersey Quality Fund, Inc., BlackRock MuniYield Michigan Quality Fund, Inc., BlackRock MuniYield New York Quality Fund, Inc., BlackRock MuniYield Pennsylvania Quality Fund, and BlackRock Virginia
Municipal Bond Trust:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of BlackRock MuniHoldings California Quality Fund, Inc., BlackRock
MuniHoldings New Jersey Quality Fund, Inc., BlackRock MuniYield Michigan Quality Fund, Inc., BlackRock MuniYield New York Quality Fund, Inc., BlackRock
MuniYield Pennsylvania Quality Fund, and BlackRock Virginia Municipal Bond Trust (the “Funds”), including the schedules of investments, as of July
31, 2026, the related statements of operations and cash flows for the year then ended, statements of changes in net assets for each of the two years in the
period then ended, financial highlights for the periods indicated in the table below, and the related notes (collectively referred to as the “financial
statements and financial highlights”). In our opinion, the financial statements and financial highlights present fairly, in all material respects, the
financial position of the Funds as of July 31, 2026, and the results of their operations and their cash flows for the year then ended, the changes in their net
assets for each of the two years in the period then ended, and the financial highlights for the periods indicated in the table below, in conformity with accounting principles
generally accepted in the United States of America.
| Fund |
Financial Highlights |
| BlackRock MuniHoldings California Quality Fund, Inc.,BlackRock MuniHoldings New Jersey Quality Fund, Inc., BlackRock MuniYield Michigan Quality Fund, Inc., BlackRock MuniYield New York Quality Fund, Inc., and BlackRock MuniYield Pennsylvania Quality Fund |
For each of the five years in the period ended July 31, 2026. |
| BlackRock Virginia Municipal Bond Trust |
For each of the four years in the period ended July 31, 2026, for the period from September 1, 2021 through July 31, 2022, and for the year ended August 31, 2021. |
Basis for Opinion
These financial statements and financial highlights are the
responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights
based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to
be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our
audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over
financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those
risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial
highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2026, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our
opinion.
/s/
Deloitte & Touche LLP
Boston, Massachusetts
September 22, 2026
Boston, Massachusetts
September 22, 2026
We have served as the auditor of one or more BlackRock investment companies since
1992.
84
2026 BlackRock Annual Report to Shareholders
Important Tax Information (unaudited)
The following amounts,
or maximum amounts allowable by law, are hereby designated as tax-exempt interest dividends for the fiscal year ended July 31, 2026:
| Fund Name |
Exempt-Interest Dividends |
| MUC |
$ 74,275,742
|
| MUJ |
38,959,789 |
| MIY |
23,398,326 |
| MYN |
43,839,381 |
| MPA |
9,952,310 |
| BHV |
1,065,098 |
The Funds hereby designate the following amounts, or maximum amounts
allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended July 31, 2026:
| Fund Name |
Interest Dividends |
| MUC |
$ 346,100
|
| MIY |
14,575 |
| MYN |
582,820 |
The Funds hereby designate the following amounts, or maximum amounts
allowable by law, as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended
July 31, 2026:
| Fund Name |
Interest- Related Dividends |
| MUC |
$ 346,100
|
| MIY |
14,575 |
| MYN |
582,820 |
Important Tax Information 85
Disclosure of Investment Advisory Agreements
The Boards of Directors/Trustees, as applicable (collectively, the “Board,” the
members of which are referred to as “Board Members”), of BlackRock MuniYield Michigan Quality Fund, Inc. (“MIY”), BlackRock MuniYield
New York Quality Fund, Inc. (“MYN”), BlackRock MuniYield Pennsylvania Quality Fund (“MPA”), BlackRock MuniHoldings California Quality
Fund, Inc. (“MUC”), BlackRock MuniHoldings New Jersey Quality Fund, Inc. (“MUJ”) and BlackRock Virginia Municipal Bond Trust (“BHV”) (collectively, the “Funds” and each, a “Fund”) met on May 7, 2026 (the “May Meeting”) and June 4-5, 2026 (the “June Meeting”) to consider the approval to continue
the investment advisory agreements (the “Advisory Agreements” or the “Agreements”) between each Fund and BlackRock Advisors, LLC (the
“Manager” or “BlackRock”), each Fund’s investment advisor.
The Approval Process
Consistent with the requirements of the Investment Company Act of
1940 (the “1940 Act”), the Board considers the approval of the continuation of the Agreements for each Fund on an annual basis. The Board Members
who are not “interested persons” of each Fund, as defined in the 1940 Act, are considered independent Board Members (the “Independent Board
Members”). The Board’s consideration entailed a year-long deliberative process during which the Board and its committees assessed BlackRock’s various services to each Fund, including through the review of written materials and oral presentations, and the review of additional information provided in response to requests
from the Independent Board Members. The Board had four quarterly meetings during the year, as well as numerous ad hoc meetings and executive sessions
throughout the year, as needed. The committees of the Board similarly met throughout the year. The Board also held the May Meeting to consider specific
information regarding the renewal of the Agreements. In considering the renewal of the Agreements, the Board assessed, among other things, the nature, extent
and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management
services; accounting oversight; administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; and
legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by
independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.
During the year, the Board, acting directly and through its
committees, considered information that was relevant to its annual consideration of the renewal of the Agreements, including the services and support provided
by BlackRock to each Fund and its shareholders. BlackRock also provided additional information to the Board in response to specific questions and requests
from the Board. Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as
applicable, against peer funds, relevant benchmarks, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio
managers’ investment performance analyses, and the reasons for any material outperformance or underperformance relative to its peers, benchmarks, and other
performance metrics, as applicable; (b) leverage management, as applicable; (c) fees, including advisory, administration, if applicable, and other amounts paid
to BlackRock and its affiliates by each Fund for applicable services; (d) Fund operating expenses and how BlackRock allocates expenses to each Fund; (e) the
resources devoted to risk oversight of, and compliance reports relating to, implementation of each Fund’s investment objective, policies and
restrictions, and meeting regulatory requirements; (f) BlackRock’s and each Fund’s development and application of applicable compliance policies
and procedures; (g) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of
such services, as applicable; (h) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (i)
BlackRock’s implementation of the proxy voting policies approved by the Board; (j) execution quality of portfolio transactions; (k) BlackRock’s
implementation of each Fund’s valuation and liquidity procedures; (l) an analysis of management fees paid to BlackRock for products with similar
investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust and institutional separate account product
channels, as applicable, and the similarities and differences between these products and the services provided as compared to each Fund; (m) BlackRock’s
compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’
investments in the fund(s) they manage; (n) periodic updates on BlackRock’s business; (o) each Fund’s market discount/premium compared to peer funds; and (p)
distributions.
Prior to and in preparation
for the May Meeting, the Board prepared and submitted questions, requested specific materials, and received and reviewed materials specifically relating to the
renewal of the Agreements. The Independent Board Members engaged in a process with their independent legal counsel and BlackRock to review the nature and
scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the May Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or
Morningstar category, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense
Peers”) and the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the
composition of the Expense Peers and Performance Peers and a description of Broadridge’s methodology; (c) information on the estimated profits realized
by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis
provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts,
sub-advised mutual funds, closed-end funds, and open-end funds, under similar investment mandates, as applicable; (e) a review of non-management fees, as
applicable; (f) the existence, impact and sharing of potential economies of scale, if any, with each Fund; (g) a summary of aggregate amounts paid by each Fund to BlackRock;
and (h) various additional information requested by the Board as appropriate regarding BlackRock’s and each Fund’s operations.
At the May Meeting, the Board reviewed materials relating to its consideration of the Agreements and the Independent Board Members
presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written
information in advance of the June Meeting, and such responses were reviewed by the Board Members.
At the June Meeting, the Board concluded its assessment of, among
other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared to its
Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by
BlackRock and its affiliates from their relationship with each Fund; (d) each Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with each Fund; and
(g) other factors deemed relevant by the Board Members.
The Board also considered other matters it deemed important to the approval process, such as other payments made or benefits that inure
to BlackRock or its affiliates, including relating to, as applicable, securities lending and cash management activities of a Fund. The Board noted the
willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board evaluated the information available to it on a
fund-by-fund basis. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The
Board Members did not identify any particular information, or any single factor as determinative, and each Board Member may have attributed different weights to the various
items and factors considered.
86
2026 BlackRock Annual Report to Shareholders
Disclosure of Investment Advisory Agreements (continued)
A. Nature, Extent and Quality of the
Services Provided by
BlackRock
The Board, including the Independent Board
Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance
of each Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of closed-end funds, relevant benchmarks, and
performance metrics, as applicable. Throughout the year, the Board met with BlackRock’s senior management personnel responsible for investment
activities, including the senior investment officers. The Board also reviewed the materials provided by each Fund’s portfolio management team discussing
each Fund’s performance, investment strategies and outlook.
The Board considered, among other factors, with respect to BlackRock: the experience of each Fund’s portfolio management team
(including the tenure of or changes in the portfolio management team); research capabilities; investments by portfolio managers in the funds they manage;
portfolio trading capabilities; use of certain trading, portfolio management, operations and/or information systems owned by BlackRock; commitment to
compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other
research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of
BlackRock and its affiliates to address cybersecurity risks, the role of BlackRock’s Risk & Quantitative Analysis Group, and BlackRock’s
policies and procedures for third-party vendor oversight. The Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s
portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.
In addition to investment advisory services, the Board considered
the nature and quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide each
Fund with certain administrative, shareholder and other services (in addition to any such services provided to a Fund by third parties) and officers and other
personnel as are necessary for the operations of each Fund. In particular, BlackRock and its affiliates provide each Fund with administrative services
including, among others: (i) responsibility for disclosure documents and periodic shareholder reports; (ii) preparing communications with analysts to support
secondary market trading of the Fund; (iii) oversight of daily accounting and net asset value; and services related to the valuation and pricing of the
Fund’s portfolio holdings; (iv) responsibility for periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities
of third-party service providers including, among others, the Fund’s custodian, fund accountant, transfer agent, and auditor; (vi) organizing Board
meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; (viii) furnishing analytical and other support to
assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain closed-end funds; and (ix) performing or
managing administrative functions necessary for the operation of the Fund, such as tax reporting, expense management, fulfilling regulatory filing
requirements, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder
services, and legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations. The
Board also considered the operation of BlackRock’s business continuity plans.
B. The Investment Performance of each
Fund
The Board, including the Independent Board Members, reviewed and considered the performance history of each Fund throughout the year and at the May Meeting. The Board
was provided with Fund performance reporting and analysis, relative to applicable performance metrics, by BlackRock throughout the year and at the May Meeting.
In preparation for the May Meeting, the Board was also provided with reports independently prepared by Broadridge, which included an analysis of each
Fund’s performance as of December 31, 2025, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth,
where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed
information regarding the investment performance of each Fund as compared to its Performance Peers and certain performance metrics (“Performance
Metrics”). The Board and its Performance Oversight Committee regularly review and meet with Fund management to discuss the performance of each Fund throughout the
year.
The Board noted that while it found the
data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist
between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged
that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could
have the ability to disproportionately affect long-term performance.
The Board reviewed and considered MIY’s performance relative to MIY’s Performance Metrics. Based on an overall rating
relative to the Performance Metrics, MIY generally performed above expectations. The Board noted that BlackRock believes that the Performance Metrics are an
appropriate performance comparison for MIY, and that BlackRock has explained its rationale for this belief to the Board.
The Board reviewed and considered MYN’s performance
relative to MYN’s Performance Metrics. Based on an overall rating relative to the Performance Metrics, MYN generally performed in line with expectations.
The Board noted that BlackRock believes that the Performance Metrics are an appropriate performance comparison for MYN, and that BlackRock has explained its rationale for
this belief to the Board.
The Board reviewed
and considered MPA’s performance relative to MPA’s Performance Metrics. Based on an overall rating relative to the Performance Metrics, MPA generally performed in line with expectations. The Board noted that BlackRock believes that the Performance Metrics are an appropriate performance comparison for MPA, and that
BlackRock has explained its rationale for this belief to the Board.
The Board reviewed and considered MUC’s performance relative to MUC’s Performance Metrics. Based on an overall rating
relative to the Performance Metrics, MUC generally performed below expectations. The Board noted that BlackRock believes that the Performance Metrics are an
appropriate performance comparison for MUC, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed MUC’s
underperformance relative to the Performance Metrics.
The Board reviewed and considered MUJ’s performance relative to MUJ’s Performance Metrics. Based on an overall rating relative to the Performance Metrics,
MUJ generally performed above expectations. The Board noted that BlackRock believes that the Performance Metrics are an appropriate performance comparison for
MUJ, and that BlackRock has explained its rationale for this belief to the Board.
Disclosure of Investment Advisory Agreements 87
Disclosure of Investment Advisory Agreements (continued)
The
Board reviewed and considered BHV’s performance relative to BHV’s Performance Metrics. Based on an overall rating relative to the Performance Metrics, BHV generally performed below expectations. The Board noted that BlackRock believes that the Performance Metrics are an appropriate performance comparison for BHV, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed BHV’s underperformance relative to the Performance Metrics.
C. Consideration of the
Advisory/Management Fees and the Estimated Costs of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their
Relationship with each
Fund
The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual
management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The
Board also compared each Fund’s total expense ratio, as well as its actual management fee rate as a percentage of managed assets, which is the total
assets of each Fund (including any assets attributable to money borrowed for investment purposes) minus the sum of each Fund’s accrued liabilities (other
than money borrowed for investment purposes) to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses,
excluding any investment related expenses. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee
rate gives effect to any management fee reimbursements or waivers. The Board considered that the fee and expense information in the Broadridge report for each
Fund reflected information for a specific period and that historical asset levels and expenses may differ from current levels, particularly in a period of
market volatility. The Board also noted that while it found the expense comparison provided by Broadridge generally useful, it recognized that the comparison
is subject to Broadridge’s defined peer selection criteria and methodology. The Board considered the services provided and the fees charged by BlackRock
and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual
funds sponsored by third parties).
The Board
reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Board
currently oversees for the year ended December 31, 2025 compared to available aggregate estimated profitability data provided for the prior two years. The
Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The
Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in
allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things,
fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized
the limitations of calculating and comparing profitability at the individual fund level.
The Board received and reviewed statements relating
to BlackRock’s financial condition. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other
publicly traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of
BlackRock’s technology business, BlackRock’s expense management, and the relative product mix. The Board noted that, in general, individual fund or
product line profitability information for other advisors is not publicly available.
The Board considered whether BlackRock has the financial
resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to
provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s
commitment of time and resources, assumption of risk, and liability profile in servicing each Fund, including in contrast to what is required of BlackRock with
respect to other products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and
institutional separate account product channels, as applicable.
The Board noted that MIY’s contractual management fee rate ranked first out of four funds, and that the actual management fee
rate and total expense ratio each ranked first out of four funds relative to the Expense Peers. The Board also noted that there is a voluntary advisory fee
waiver in place pursuant to which BlackRock will waive a portion of its advisory fee attributable to MIY’s outstanding preferred shares for each month in
which the monthly dividend on the preferred shares exceeds the calculated value of MIY’s gross monthly income attributable to investments from the proceeds of the
preferred shares.
The Board noted
that MYN’s contractual management fee rate ranked first out of four funds, and that the actual management fee rate and total expense ratio each ranked first out of four funds relative to the Expense Peers. The Board also noted that there is a voluntary advisory fee waiver in place pursuant to which BlackRock will waive a
portion of its advisory fee attributable to MYN’s outstanding preferred shares for each month in which the monthly dividend on the preferred shares
exceeds the calculated value of MYN’s gross monthly income attributable to investments from the proceeds of the preferred shares.
The Board noted that MPA’s contractual management fee
rate ranked first out of four funds, and that the actual management fee rate and total expense ratio each ranked first out of four funds relative to the
Expense Peers. The Board also noted that there is a voluntary advisory fee waiver in place pursuant to which BlackRock will waive a portion of its advisory fee
attributable to MPA’s outstanding preferred shares for each month in which the monthly dividend on the preferred shares exceeds the calculated value of MPA’s
gross monthly income attributable to investments from the proceeds of the preferred shares.
The Board noted that MUC’s contractual management fee
rate ranked first out of four funds, and that the actual management fee rate and total expense ratio each ranked first out of four funds relative to the
Expense Peers. The Board also noted that there is a voluntary advisory fee waiver in place pursuant to which BlackRock will waive a portion of its advisory fee
attributable to MUC’s outstanding preferred shares for each month in which the monthly dividend on the preferred shares exceeds the calculated value of MUC’s
gross monthly income attributable to investments from the proceeds of the preferred shares.
The Board noted that MUJ’s contractual management fee rate ranked first out of four funds, and that the actual management fee rate and total expense ratio each
ranked first out of four funds relative to the Expense Peers. The Board also noted that there is a voluntary advisory fee waiver in place pursuant to which
BlackRock will waive a portion of its advisory fee attributable to MUJ’s outstanding preferred shares for each month in which the monthly dividend on the
preferred shares exceeds the calculated value of MUJ’s gross monthly income attributable to investments from the proceeds of the preferred shares.
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2026 BlackRock Annual Report to Shareholders
Disclosure of Investment Advisory Agreements (continued)
The
Board noted that BHV’s contractual management fee rate ranked third out of four funds, and that the actual management fee rate and total expense ratio ranked first out of four funds and fourth out of four funds, respectively, relative to the Expense Peers. The Board and BlackRock discussed the impact of the attempt to merge BHV into
BlackRock MuniYield Quality Fund (MQY) on BHV’s expenses. The Board also noted that BlackRock had agreed to voluntarily waive a portion of the advisory
fee payable by BHV. After discussions between the Board, including the Independent Board Members, and BlackRock, the Board and BlackRock agreed to a
continuation of the current 13 basis point voluntary advisory fee waiver. The Board further noted that there is a voluntary advisory fee waiver in place
pursuant to which BlackRock will waive a portion of its advisory fee attributable to BHV’s outstanding preferred shares for each month in which the
monthly dividend on the preferred shares exceeds the calculated value of BHV’s gross monthly income attributable to investments from the proceeds of the preferred
shares.
D. Economies of
Scale
The Board, including the Independent
Board Members, considered the extent to which any economies of scale might benefit each Fund in a variety of ways as the assets of the Fund increase. The
Board considered multiple factors, including the advisory fee rate and breakpoints, and fee waivers, as applicable. The Board considered each Fund’s asset levels and
whether the current fee was appropriate.
Based on the Board’s review and consideration of the issue, the Board concluded that most closed-end funds do not have fund level
breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering. Closed-end funds are typically priced at scale at a
fund’s inception.
E.
Other Factors Deemed Relevant by the Board Members
The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive
from BlackRock’s respective relationships with each Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment
professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and
the engagement of BlackRock’s affiliates as service providers to each Fund, including for administrative, securities lending and cash management
services. The Board also noted the revenue received by BlackRock and/or its affiliates pursuant to an agreement that permits a service provider to use certain
portions of BlackRock’s technology platform to service accounts managed by BlackRock and/or its affiliates. With respect to securities lending, during
the year the Board also considered information provided by independent third-party consultants related to the performance of each BlackRock affiliate as
securities lending agent. The Board considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its
operations. The Board noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts. Throughout the year, the Board also received information and reporting, as
applicable, regarding BlackRock’s soft dollar, brokerage, and trade execution practices.
The Board also considered the various notable initiatives and
projects BlackRock performed in connection with its closed-end fund product line. These initiatives included developing equity shelf programs; efforts to
eliminate product overlap with fund mergers; ongoing services to manage leverage that has become increasingly complex; periodic evaluation of share repurchases
and other support initiatives for certain BlackRock-advised funds; and efforts to reduce fund discounts, including continued communication efforts with
shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted BlackRock’s continued commitment to
supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise
investor and analyst awareness and understanding of closed-end funds. BlackRock’s support services included, among other things: sponsoring and
participating in conferences; communicating with closed-end fund analysts covering the BlackRock funds throughout the year; providing marketing and product
updates for the closed-end funds; and maintaining and enhancing its closed-end fund website.
Conclusion
At the June Meeting, in a continuation of the discussions that
occurred during the May Meeting, and as a culmination of the Board’s year-long deliberative process, the Board, including the Independent Board Members,
unanimously approved the continuation of the Advisory Agreements between the Manager and each Fund for a one-year term ending June 30, 2027. Based upon its
evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was
satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to
approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together,
and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were advised by independent
legal counsel throughout the deliberative process.
Disclosure of Investment Advisory Agreements 89
Investment Objectives, Policies and Risks
Recent Changes
The following information is a summary of
certain changes since July 31, 2025. This information may not reflect all of the changes that have occurred since you purchased the relevant Fund.
Effective September 9, 2026, BlackRock Virginia Municipal Bond Trust (BHV) amended its policy to invest at least 80% of its Managed Assets in municipal bonds, the interest
of which is exempt from regular federal income tax and Virginia personal income tax to include derivatives that provide investment exposure to such securities
or to one or more market risk factors associated with such securities. Previously, the Fund included a separate sentence stating that such derivatives may be counted
towards its 80% policy.
Except as noted
above, during each Fund’s most recent fiscal year, there were no material changes in the Fund’s investment objectives or policies that have not been approved by
shareholders or in the principal risk factors associated with investment in the Fund.
Investment Objectives and Policies
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
The Fund’s investment objective is to provide stockholders with current income exempt from federal and California income taxes.
There can be no assurance that the Fund’s investment objective will be realized.
The Fund’s investment policies provide that it will invest
primarily in a portfolio of long-term, investment grade municipal obligations issued by or on behalf of the State of California, its political subdivisions,
agencies and instrumentalities and by other qualifying issuers that pay interest which, in the opinion of bond counsel to the issuer, is exempt from federal
and California income taxes (except that the interest may be includable in taxable income for purposes of the federal alternative minimum tax) (“California
Municipal Bonds”). The Fund’s investment policies provide that the Fund will seek to achieve its investment objective by seeking to invest
substantially all (a minimum of 80%) of its assets in California Municipal Bonds, except at times when, in the judgment of BlackRock Advisors, LLC (the
“Manager”), California Municipal Bonds of sufficient quality and quantity are unavailable for investment at suitable prices by the Fund. For the
purposes of the foregoing policy, “assets” are the Fund’s net assets, plus the amount of any borrowings for investment purposes. Under normal
circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in “investment
grade” securities. The Fund’s investments in derivatives will be counted toward the foregoing 80% policies to the extent that they provide investment
exposure to the securities included within each policy or to one or more market risk factors associated with such securities. The Fund’s investment
objective and its policy of investing at least 80% of its assets in California Municipal Bonds may not be changed without the approval of the holders of a
majority of the outstanding common shares and the outstanding preferred shares voting together as a single class, and of the holders of a majority of the
outstanding preferred shares voting as a separate class. A majority of the outstanding means (1) 67% or more of the shares present at a meeting, if the holders
of more than 50% of the outstanding shares are present or represented by proxy, or (2) more than 50% of the outstanding shares, whichever is less.
The Fund’s investment policies provide that at all times,
except during temporary defensive periods, the Fund will invest at least 65% of its assets in California Municipal Bonds and at least 80% of its assets in
California Municipal Bonds and other long-term municipal obligations exempt from Federal income taxes, but not from California income taxes (“Municipal
Bonds”). The Fund’s investment policies provide that, under normal market conditions, the Fund invests at least 80% of its assets in municipal securities with remaining maturities of one year or more at the time of investment. The Fund ordinarily does not intend to realize significant investment income not exempt from Federal and
California income taxes. To the extent that suitable California Municipal Bonds are not available for investment by the Fund, as determined by the Manager, the
Fund may purchase Municipal Bonds.
The investment grade California Municipal Bonds and Municipal Bonds in which the Fund will primarily invest are those California Municipal Bonds and Municipal Bonds that
are rated at the date of purchase in the four highest rating categories of Moody’s Investors Service, Inc. (“Moody’s”) (currently Aaa,
Aa, A and Baa), S&P Global Ratings (“S&P”) (currently AAA, AA, A and BBB) or Fitch Ratings, Inc. (“Fitch”) (currently AAA, AA,
A and BBB) or, if unrated, are considered to be of comparable quality by the Manager. In the case of short term notes, the investment grade rating categories
are SP-1+ through SP-2 for S&P, MIG-1 through MIG-3 for Moody’s and F-1+ through F-3 for Fitch. In the case of tax exempt commercial paper, the
investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through Prime-3 for Moody’s and F-1+ through F-3 for Fitch. Obligations
ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG-3 and Prime-3 for Moody’s and BBB and F-3 for Fitch), while
considered “investment grade,” may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing
within the rating categories set forth above. In assessing the quality of California Municipal Bonds and Municipal Bonds with respect to the foregoing
requirements, the Manager takes into account the nature of any letters of credit or similar credit enhancement to which particular California Municipal Bonds
and Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement. If unrated, such securities will
possess creditworthiness comparable, in the opinion of the Manager, to other obligations in which the Fund may invest. The foregoing credit quality policies
apply only at the time a security is purchased, and the Fund is not required to dispose of a security if a rating agency downgrades its assessment of the
credit characteristics of a particular issue. In determining whether to retain or sell a security that a rating agency has downgraded, the Manager may consider
such factors as the Manager’s assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the
rating, if any, assigned to the security by other rating agencies. In the event that the Fund disposes of a portfolio security subsequent to its being
downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such downgrade. The Fund may also purchase California
Municipal Bonds and Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies
which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums
for insurance and the higher market price paid for insured obligations may reduce the Fund’s income. The insurance feature does not guarantee the market
value of the insured obligations or the net asset value of the common shares.
The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, which are securities rated Ba or
below by Moody’s, BB or below by S&P or Fitch or are considered by the Manager to be of comparable quality, at the time of purchase, subject to the
Fund’s other investment policies. Below investment grade quality is regarded as predominantly speculative with respect to the issuer’s capacity to
pay interest and repay principal. Such securities commonly are referred to as “high yield” or “junk” bonds.
90
2026 BlackRock Annual Report to Shareholders
Investment Objectives, Policies and Risks (continued)
The
Fund may invest in certain tax exempt securities classified as “private activity bonds” (or industrial development bonds, under pre-1986 law) (in general, bonds that benefit non-governmental entities) that may subject certain investors in the Fund to an alternative minimum tax. The percentage of the Fund’s total assets invested in private
activity bonds will vary from time to time.
The average maturity of the Fund’s portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. The
Fund’s portfolio at any given time may include both long-term, intermediate-term and short-term California Municipal Bonds and Municipal Bonds.
The Fund’s stated expectation is that it will invest in
California Municipal Bonds and Municipal Bonds that, in the Manager’s opinion, are underrated or undervalued. Underrated California Municipal Bonds and
Municipal Bonds are those whose ratings do not, in the opinion of the Manager, reflect their true higher creditworthiness. Undervalued California Municipal
Bonds and Municipal Bonds are bonds that, in the opinion of the Manager, are worth more than the value assigned to them in the marketplace. The Manager may at
times believe that bonds associated with a particular municipal market sector (for example, but not limited to electric utilities), or issued by a particular
municipal issuer, are undervalued. The Manager may purchase those bonds for the Fund’s portfolio because they represent a market sector or issuer that
the Manager considers undervalued, even if the value of those particular bonds appears to be consistent with the value of similar bonds. California Municipal
Bonds and Municipal Bonds of particular types (for example, but not limited to hospital bonds, industrial revenue bonds or bonds issued by a particular
municipal issuer) may be undervalued because there is a temporary excess of supply in that market sector, or because of a general decline in the market price
of California Municipal Bonds and Municipal Bonds of the market sector for reasons that do not apply to the particular California Municipal Bonds and Municipal
Bonds that are considered undervalued. The Fund’s investment in underrated or undervalued California Municipal Bonds and Municipal Bonds will be based on
the Manager’s belief that their yield is higher than that available on bonds bearing equivalent levels of interest rate risk, credit risk and other forms
of risk, and that their prices will ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by the Fund will
generally result in capital gain distributions subject to federal capital gains taxation. The Fund ordinarily does not intend to realize significant investment income not
exempt from federal income tax. From time to time, the Fund may realize taxable capital gains.
Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of variable rate demand preferred shares (“VRDP Shares”) and residual interest municipal
tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay
interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.
The Fund may enter into reverse repurchase agreements with respect to its portfolio
investments subject to the Fund’s investment restrictions.
The Fund may enter into derivative securities transactions that have leverage embedded in them.
The Fund is authorized to borrow money in amounts of up to 5% of
the value of its total assets at the time of such borrowings; provided, however, that the Fund is authorized to borrow moneys in amounts of up to 33 1/3% of
the value of its total assets at the time of such borrowings to finance the repurchase of its own common stock pursuant to tender offers or otherwise to redeem or repurchase
shares of preferred stock.
BlackRock
MuniHoldings New Jersey Quality Fund, Inc. (MUJ)
The
Fund’s investment objective is to provide shareholders with current income exempt from federal income tax and New Jersey personal income taxes.
The Fund seeks to achieve its investment objective by investing primarily in a portfolio of municipal obligations, the interest on which,
in the opinion of bond counsel to the issuer, is exempt from federal income tax and New Jersey personal income taxes (“New Jersey Municipal
Bonds”). The Fund invests substantially all (at least 80%) of its assets in New Jersey Municipal Bonds, except at times when BlackRock Advisors, LLC (the
“Manager”) considers that New Jersey Municipal Bonds of sufficient quantity and quality are unavailable at suitable prices. To the extent that the
Manager considers that suitable New Jersey Municipal Bonds are not available for investment, the Fund may purchase municipal obligations exempt from federal
income taxes but not New Jersey personal income taxes (“Municipal Bonds”). The Fund will maintain at least 80% of its assets in New Jersey
Municipal Bonds, except during interim periods pending investment of the net proceeds of public offerings of its securities and during temporary defensive periods. For the purposes of the foregoing policy, “assets” are the Fund’s net assets, plus the amount of any borrowings for investment purposes. Under normal
circumstances, the Fund will invest at least 80% of its net assets, plus the amount of borrowings for investment purposes, in “investment grade”
securities. The Fund’s investments in derivatives will be counted toward the foregoing 80% policies to the extent that they provide investment exposure
to the securities included within each policy or to one or more market risk factors associated with such securities. Under normal circumstances, at least 80%
of the Fund’s assets will be invested in municipal obligations with remaining maturities of one year or more. There can be no assurance that the
Fund’s investment objective will be realized. The investment objective of the Fund and the Fund’s policy to invest at least 80% of its assets in
New Jersey Municipal Bonds are fundamental policies that may not be changed without a vote of a majority of the Fund’s outstanding voting securities (as defined in the
Investment Company Act of 1940, as amended).
Ordinarily, the Fund does not intend to realize significant investment income subject to federal income tax and New Jersey personal
income taxes. The Fund may invest all or a portion of its assets in certain tax-exempt securities classified as “private activity bonds” (in
general, bonds that benefit non-governmental entities) that may subject certain investors in the Fund to a federal alternative minimum tax.
The Fund may also invest in securities not issued by or on behalf
of a state or territory or by an agency or instrumentality thereof, if the Fund nevertheless believes such securities pay interest or distributions that are
exempt from federal income taxation (“Non-Municipal Tax-Exempt Securities”). Non-Municipal Tax-Exempt Securities may include securities issued by
other investment companies that invest in New Jersey Municipal Bonds and Municipal Bonds, to the extent such investments are permitted by the Investment
Company Act of 1940, as amended (the “1940 Act”). Other Non-Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interests in one or more long-term New Jersey Municipal Bonds or Municipal Bonds. Certain Non-Municipal Tax-Exempt Securities may be characterized as derivative instruments. For purposes of the Fund’s investment objective and policies, Non-Municipal Tax-Exempt Securities that pay interest that is exempt from federal income
taxes and New Jersey personal income taxes will be considered “New Jersey Municipal Bonds” and Non-Municipal Tax-Exempt Securities that pay
interest that is exempt from federal income taxes will be considered “Municipal Bonds.”
Investment Objectives, Policies and Risks 91
Investment Objectives, Policies and Risks (continued)
The
Fund invests in investment grade New Jersey Municipal Bonds and Municipal Bonds that are rated at the date of purchase in the four highest rating categories of Moody’s Investors Service, Inc. (“Moody’s”) (currently Aaa, Aa, A and Baa), S&P Global Ratings (“S&P”) (currently AAA, AA, A and BBB) or Fitch
Ratings, Inc. (“Fitch”) (currently AAA, AA, A and BBB) or, if unrated, are considered to be of comparable quality by the Manager. In the case of
long-term debt, the investment grade rating categories are AAA through BBB for S&P and Fitch and Aaa through Baa for Moody’s. In the case of
short-term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG 1 through MIG 3 for Moody’s and F-1+ through F-3 for
Fitch. In the case of tax-exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, P-1 through P-3 for Moody’s
and F-1+ through F-3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG 3 and P-3 for
Moody’s; and BBB and F-3 for Fitch), while considered “investment grade,” may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of New Jersey Municipal Bonds and Municipal Bonds with respect to the
foregoing requirements, the Manager takes into account the portfolio insurance as well as the nature of any letters of credit or similar credit enhancement to
which particular New Jersey Municipal Bonds and Municipal Bonds are entitled and the creditworthiness of the insurance company or financial institution that
provided such insurance or credit enhancements. Insurance is expected to protect the Fund against losses caused by a bond issuer’s failure to make
interest or principal payments. However, insurance does not protect the Fund or its shareholders against losses caused by declines in a bond’s market
value. Also, the Fund cannot be certain that any insurance company does not make these payments. If a bond’s insurer fails to fulfill its obligations or loses its
credit rating, the value of the bond could drop.
The
Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, which are securities rated Ba or below by Moody’s, BB or below by S&P or Fitch or are considered by the Manager to be of comparable quality, at the time of purchase, subject to the Fund’s other investment policies. Below
investment grade quality is regarded as predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal. Such
securities commonly are referred to as “high yield” or “junk” bonds.
The Fund may invest in variable rate demand obligations
(“VRDOs”) and VRDOs in the form of participation interests (“Participating VRDOs”) in variable rate tax-exempt obligations held by a
financial institution, typically a commercial bank. The VRDOs in which the Fund may invest are tax-exempt obligations, in the opinion of counsel to the issuer,
that contain a floating or variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment of the unpaid principal balance plus accrued interest on a short notice period not to exceed seven days. There is, however, the possibility that because of default or insolvency the demand feature
of VRDOs may not be honored. The interest rates are adjustable at intervals (ranging from daily to up to one year) to some prevailing market rate for similar
investments, such adjustment formula being calculated to maintain the market value of the VRDOs, at approximately the par value of the VRDOs on the adjustment
date. The adjustments typically are based upon SIFMA or some other appropriate interest rate adjustment index. VRDOs that contain an unconditional right of
demand to receive payment of the unpaid principal balance plus accrued interest on a notice period exceeding seven days may be deemed to be illiquid
securities. Participating VRDOs provide the Fund with a specified undivided interest (up to 100%) in the underlying obligation and the right to demand payment
of the unpaid principal balance plus accrued interest on the Participating VRDOs from the financial institution on a specified number of days’ notice, not to exceed
seven days.
The average maturity of the
Fund’s portfolio securities varies based upon the Manager’s assessment of economic and market conditions. The net asset value of the shares of
common stock of a closed-end investment company such as the Fund, which invests primarily in fixed-income securities, changes as the general levels of interest
rates fluctuate. When interest rates decline, the value of a fixed income portfolio can be expected to rise. Conversely, when interest rates rise, the value of
a fixed income portfolio can be expected to decline. Prices of longer-term securities generally fluctuate more in response to interest rate changes than do
short-term or medium-term securities. These changes in net asset value are likely to be greater in the case of a fund having a leveraged capital structure, such as that used
by the Fund.
The Fund invests primarily in
long-term New Jersey Municipal Bonds and Municipal Bonds with a maturity of more than ten years. However, the Fund may also invest in intermediate-term New
Jersey Municipal Bonds and Municipal Bonds with a maturity of between three years and ten years. The Fund may also invest in short-term tax-exempt securities,
short-term U.S. Government securities, repurchase agreements or cash. Investments in such short-term securities or cash will not exceed 20% of the Fund’s total assets, except during interim periods pending investment of the net proceeds from public offerings of the Fund’s securities or in anticipation of the repurchase or
redemption of the Fund’s securities and temporary periods when, in the opinion of the Manager, prevailing market or economic conditions warrant. The Fund
does not ordinarily intend to realize significant interest income that is subject to federal income tax and New Jersey personal income taxes.
Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its
common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of
variable rate demand preferred shares (“VRDP Shares”) and residual interest municipal tender option bonds (“TOB Residuals”), which are
derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB
Residuals, is exempt from regular U.S. federal income tax.
The
Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Fund’s investment restrictions.
The Fund may enter into derivative securities transactions that have leverage embedded in them.
The Fund is authorized to borrow money in amounts of up to 5% of
the value of its total assets at the time of such borrowings; provided, however, that the Fund is authorized to borrow moneys in amounts of up to 33 1/3% of
the value of its total assets at the time of such borrowings to finance the repurchase of its own common shares pursuant to tender offers or otherwise to redeem or repurchase
preferred shares.
BlackRock MuniYield Michigan
Quality Fund (MIY)
The Fund’s
investment objective is to provide shareholders with as high a level of current income exempt from federal and Michigan 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 an aggregate of the
Fund’s net assets (including proceeds from the issuance of any preferred stock) and the proceeds of any borrowings for investment purposes, in a
portfolio of municipal obligations issued by or on behalf of the State of Michigan, its political subdivisions, agencies and instrumentalities and by other
qualifying issuers, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax
purposes (except that the interest may be includable in taxable income for purposes of the federal alternative minimum tax) and exempt from Michigan income
taxes (“Michigan Municipal Bonds”). The Fund also may invest in municipal obligations issued by or on
92
2026 BlackRock
Annual Report to Shareholders
Investment Objectives, Policies and Risks (continued)
behalf of states, territories and possessions of the United States and their political
subdivisions, agencies or instrumentalities, each of which pays interest that is excludable from gross income for federal income tax purposes, in the opinion
of bond counsel to the issuer, but is not excludable from gross income for Michigan income tax purposes (“Municipal Bonds”). Unless otherwise
noted, the term “Municipal Bonds” also includes Michigan Municipal Bonds. Under normal circumstances, the Fund will invest at least 80% of its net
assets, plus the amount of any borrowings for investment purposes, in “investment grade securities. The Fund’s investments in derivatives will be counted toward the Fund’s 80% policies to the extent that they provide investment exposure to the securities included within each policy or to one or more market risk factors
associated with such securities. In general, the Fund does not intend for its investments to earn a large amount of interest income that is (i) includable in
gross income for federal income tax purposes or (ii) not exempt from Michigan income taxes. From time to time, the Fund may realize taxable capital gains. The
Fund’s investment objective and its policy of investing at least 80% of an aggregate of the Fund’s net assets (including proceeds from the issuance
of any preferred stock) and the proceeds of any borrowings for investment purposes, in Municipal Bonds are fundamental policies that may not be changed without
the approval of a majority of the outstanding voting securities of the Fund (as defined in the Investment Company Act of 1940, as amended (the “1940 Act”)). There
can be no assurance that the Fund’s investment objective will be realized.
The Fund may invest in certain tax-exempt securities classified as “private activity bonds” (or industrial development bonds, under pre-1986 law)
(“PABs”) (in general, bonds that benefit non-governmental entities) that may subject certain investors in the Fund to an alternative minimum tax.
The percentage of the Fund’s total assets invested in PABs will vary from time to time.
Under normal market conditions, the Fund expects to invest
primarily in a portfolio of long-term Municipal Bonds that are commonly referred to as “investment grade” securities, which are obligations rated
at the time of purchase within the four highest-quality ratings as determined by either Moody’s Investors Service, Inc. (“Moody’s”) (currently Aaa, Aa, A and Baa), S&P Global Ratings (“S&P”) (currently AAA, AA, A and BBB) or Fitch Ratings, Inc. (“Fitch”) (currently AAA, AA, A and BBB) or are
considered by BlackRock Advisors, LLC (the “Manager”) to be of comparable quality. In the case of short-term notes, the investment grade rating
categories are SP-1+ through SP-2 for S&P, MIG 1 through MIG 3 for Moody’s and F1+ through F3 for Fitch. In the case of tax-exempt commercial paper,
the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through Prime-3 for Moody’s and F1+ through F3 for Fitch. Obligations
ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG 3 and Prime-3 for Moody’s; and BBB and F3 for Fitch),
while considered “investment grade,” may have certain speculative characteristics. There may be sub-categories or gradations indicating relative
standing within the rating categories set forth above. In assessing the quality of Municipal Bonds with respect to the foregoing requirements, the Manager
takes into account the nature of any letters of credit or similar credit enhancement to which particular Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement. Insurance is expected to protect the Fund against losses caused by a bond issuer’s failure to make
interest or principal payments. However, insurance does not protect the Fund or its shareholders against losses caused by declines in a bond’s market
value. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the bond could drop. If unrated, such securities
will possess creditworthiness comparable, in the opinion of the Manager, to other obligations in which the Fund may invest.
The Fund may invest up to 20% of its managed assets in securities
that are rated below investment grade, which are securities rated Ba or below by Moody’s, BB or below by S&P or Fitch or are considered by the
Manager to be of comparable quality, at the time of purchase, subject to the Fund’s other investment policies. Below investment grade quality is regarded
as predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal. Such securities commonly are referred to as “high
yield” or “junk” bonds.
All percentage and ratings limitations on securities in which the Fund may invest apply at the time of making an investment and shall not be considered violated as a result
of subsequent market movements or if an investment rating is subsequently downgraded to a rating that would have precluded the Fund’s initial investment
in such security. In the event that the Fund disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of
loss than if such security had been sold prior to such downgrade.
The average maturity of the Fund’s portfolio securities varies from time to time based upon an assessment of economic and market
conditions by the Manager. The Fund’s portfolio at any given time may include both long-term and intermediate-term municipal bonds.
The net asset value of the shares of common stock of a closed-end
investment company, such as the Fund, which invests primarily in fixed income securities, changes as the general levels of interest rates fluctuate. When
interest rates decline, the value of a fixed income portfolio can be expected to rise. Conversely, when interest rates rise, the value of a fixed income
portfolio can be expected to decline. Prices of longer term securities generally fluctuate more in response to interest rate changes than do shorter term securities. These
changes in net asset value are likely to be greater in the case of a fund having a leveraged capital structure, such as the Fund.
For temporary periods or to provide liquidity, the Fund has the authority to invest as much as 20% of its total assets in tax-exempt and
taxable money market obligations with a maturity of one year or less (such short-term obligations being referred to herein as “Temporary
Investments”). In addition, the Fund reserves the right as a defensive measure to invest temporarily a greater portion of its assets in Temporary
Investments, when, in the opinion of the Manager, prevailing market or financial conditions warrant. Taxable money market obligations will yield taxable
income. The Fund also may invest in variable rate demand obligations (“VRDOs”) and VRDOs in the form of participation interests
(“Participating VRDOs”) in variable rate tax-exempt obligations held by a financial institution. The Fund’s hedging strategies are not fundamental policies and may be modified by the Board of Directors of the Fund without the approval of the Fund’s stockholders. The Fund is also authorized to invest in indexed and inverse floating
rate obligations for hedging purposes and to seek to enhance return.
The Fund may invest in securities not issued by or on behalf of a state or territory or by an agency or instrumentality thereof, if the
Fund receives an opinion of counsel to the issuer that such securities pay interest that is excludable from gross income for federal income tax purposes and,
if applicable, exempt from Michigan income taxes (“Non-Municipal Tax-Exempt Securities”). Non-Municipal Tax-Exempt Securities could include trust
certificates, partnership interests or other instruments evidencing interest in one or more long-term Municipal Bonds. Non-Municipal Tax-Exempt Securities also
may include securities issued by other investment companies that invest in Municipal Bonds, to the extent such investments are permitted by the Fund’s
investment restrictions and applicable law. Non-Municipal Tax-Exempt Securities are subject to the same risks associated with an investment in Municipal Bonds
as well as many of the risks associated with investments in derivatives. If the Internal Revenue Service were to issue any adverse ruling or take an adverse
position with respect to the taxation on these types of securities, there is a risk that the interest paid on such securities would be deemed taxable at the federal
level.
Investment Objectives, Policies and Risks 93
Investment Objectives, Policies and Risks (continued)
The Fund ordinarily
does not intend to realize significant investment income not exempt from federal income tax. From time to time, the Fund may realize taxable capital gains.
Federal tax legislation may limit the types and volume of bonds the interest on which qualifies for a federal income tax-exemption. As a
result, current legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by the Fund.
Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its
common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of
variable rate demand preferred shares (“VRDP Shares”) and residual interest municipal tender option bonds (“TOB Residuals”), which are
derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB
Residuals, is exempt from regular U.S. federal income tax.
The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Fund’s investment restrictions. The Fund may enter into
“dollar roll” transactions.
The Fund may leverage its portfolio by entering into one or more credit facilities.
The Fund may enter into derivative securities transactions that have leverage embedded in them.
The Fund may also borrow money as a temporary measure for
extraordinary or emergency purposes, including the payment of dividends and the settlement of securities transactions which otherwise might require untimely
dispositions of Fund securities. Certain short-term borrowings (such as for cash management purposes) are not subject to the 1940 Act’s limitations on leverage if (i)
repaid within 60 days, and (ii) not in excess of 5% of the Fund’s total assets.
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
The Fund’s investment objective is to provide stockholders with as high a level of current income exempt from federal income taxes
and New York State and New York City personal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to
achieve its investment objective by investing, as a fundamental policy, at least 80% of an aggregate of the Fund’s net assets (including proceeds from
the issuance of any preferred stock) and the proceeds of any borrowings for investment purposes, in a portfolio of municipal obligations issued by or on behalf
of the State of New York, its political subdivisions, agencies and instrumentalities and by other qualifying instrumentalities, each of which pays interest
that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes (except that the interest may be includable
in taxable income for purposes of the federal alternative minimum tax) and exempt from New York State and New York City personal income taxes (“New York
Municipal Bonds”). The Fund also may invest in municipal obligations issued by or on behalf of states, territories and possessions of the United States
and their political subdivisions, agencies or instrumentalities, which pay interest that is excludable from gross income for federal income tax purposes, in
the opinion of bond counsel to the issuer, but is not exempt from New York State and New York City personal income taxes (“Municipal Bonds”).
Unless otherwise noted, the term “Municipal Bonds” also includes New York Municipal Bonds. Under normal circumstances, the Fund will invest at
least 80% of its net assets, plus the amount of any borrowings for investment purposes, in “investment grade” securities. The Fund’s
investments in derivatives will be counted toward the Fund’s 80% policies to the extent that they provide investment exposure to the securities included
within each policy or to one or more market risk factors associated with such securities. In general, the Fund does not intend for its investments to earn a
large amount of interest income that is (i) includable in gross income for federal income tax purposes or (ii) not exempt from New York State and New York City
personal income taxes. The Fund’s investment objective and its policy of investing at least 80% of an aggregate of the Fund’s net assets (including proceeds from the issuance of any preferred stock) and the proceeds of any borrowings for investment purposes, in New York Municipal Bonds are fundamental policies that may not be changed
without the approval of a majority of the outstanding voting securities of the Fund (as defined in the Investment Company Act of 1940, as amended (the
“1940 Act”)). There can be no assurance that the Fund’s investment objective will be realized.
The Fund may invest in certain tax-exempt securities classified
as “private activity bonds” (or industrial development bonds, under pre-1986 law) (“PABs”) (in general, bonds that benefit
non-governmental entities) that may subject certain investors in the Fund to an alternative minimum tax. The percentage of the Fund’s total assets invested in PABs will
vary from time to time.
Under normal market
conditions, the Fund expects to invest primarily in a portfolio of long-term Municipal Bonds that are commonly referred to as “investment grade” securities, which are obligations rated at the time of purchase within the four highest-quality ratings as determined by either Moody’s Investors Service, Inc.
(“Moody’s”) (currently Aaa, Aa, A and Baa), S&P Global Ratings (“S&P”) (currently AAA, AA, A and BBB) or Fitch Ratings,
Inc. (“Fitch”) (currently AAA, AA, A and BBB) or are considered by BlackRock Advisors, LLC (the “Manager”) to be of comparable quality.
In the case of short-term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG 1 through MIG 3 for Moody’s and F1+
through F3 for Fitch. In the case of tax-exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through
Prime-3 for Moody’s and F1+ through F3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG 3 and Prime-3 for Moody’s; and BBB and F3 for Fitch), while considered “investment grade,” may have certain speculative characteristics. There may be
sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of Municipal Bonds with
respect to the foregoing requirements, the Manager takes into account the nature of any letters of credit or similar credit enhancement to which particular
Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement. Insurance is expected to protect the
Fund against losses caused by a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its
stockholders against losses caused by declines in a bond’s market value. If a bond’s insurer fails to fulfill its obligations or loses its credit
rating, the value of the bond could drop. If unrated, such securities will possess creditworthiness comparable, in the opinion of the Manager, to other obligations in which
the Fund may invest.
The Fund may invest up
to 20% of its managed assets in securities that are rated below investment grade, which are securities rated at the time of purchase Ba or below by
Moody’s, BB or below by S&P or Fitch, or securities determined by the Manager to be of comparable quality. Below investment grade quality is regarded
as predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal. Such securities commonly are referred to as “high
yield” or “junk” bonds.
94
2026 BlackRock
Annual Report to Shareholders
Investment Objectives, Policies and Risks (continued)
All
percentage and ratings limitations on securities in which the Fund may invest apply at the time of making an investment and shall not be considered violated as a result of subsequent market movements or if an investment rating is subsequently downgraded to a rating that would have precluded the Fund’s initial investment in such
security. In the event that the Fund disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of loss than
if such security had been sold prior to such downgrade.
The average maturity of the Fund’s portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. The
Fund’s portfolio at any given time may include both long-term and intermediate-term municipal bonds.
The net asset value of the shares of common stock of a closed-end
investment company, such as the Fund, which invests primarily in fixed income securities, changes as the general levels of interest rates fluctuate. When
interest rates decline, the value of a fixed income portfolio can be expected to rise. Conversely, when interest rates rise, the value of a fixed income
portfolio can be expected to decline. Prices of longer term securities generally fluctuate more in response to interest rate changes than do shorter term securities. These
changes in net asset value are likely to be greater in the case of a fund having a leveraged capital structure, such as the Fund.
For temporary periods or to provide liquidity, the Fund has the authority to invest as much as 20% of its total assets in tax-exempt and
taxable money market obligations with a maturity of one year or less (such short-term obligations being referred to herein as “Temporary
Investments”). In addition, the Fund reserves the right as a defensive measure to invest temporarily a greater portion of its assets in Temporary
Investments, when, in the opinion of the Manager, prevailing market or financial conditions warrant. Taxable money market obligations will yield taxable
income. The Fund also may invest in variable rate demand obligations (“VRDOs”) and VRDOs in the form of participation interests
(“Participating VRDOs”) in variable rate tax-exempt obligations held by a financial institution. The Fund’s hedging strategies are not fundamental policies and may be modified by the Board of Directors of the Fund without the approval of the Fund’s stockholders. The Fund is also authorized to invest in indexed and inverse floating
rate obligations for hedging purposes and to seek to enhance return.
The Fund may invest in securities not issued by or on behalf of a state or territory or by an agency or instrumentality thereof, if the
Fund receives an opinion of counsel to the issuer that such securities pay interest that is excludable from gross income for federal income tax purposes and,
if applicable, exempt from New York State and New York City personal income taxes (“Non-Municipal Tax-Exempt Securities”). Non-Municipal Tax-Exempt
Securities could include trust certificates, partnership interests or other instruments evidencing interest in one or more long-term Municipal Bonds.
Non-Municipal Tax-Exempt Securities also may include securities issued by other investment companies that invest in Municipal Bonds, to the extent such
investments are permitted by the Fund’s investment restrictions and applicable law. Non-Municipal Tax-Exempt Securities are subject to the same risks
associated with an investment in Municipal Bonds as well as many of the risks associated with investments in derivatives. If the Internal Revenue Service were
to issue any adverse ruling or take an adverse position with respect to the taxation on these types of securities, there is a risk that the interest paid on such securities
would be deemed taxable at the federal level.
The Fund
ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, the Fund may realize taxable capital gains.
Federal tax legislation may limit the types and volume of bonds
the interest on which qualifies for a federal income tax-exemption. As a result, current legislation and legislation that may be enacted in the future may affect the
availability of Municipal Bonds for investment by the Fund.
Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of variable rate demand preferred shares (“VRDP Shares”) and residual interest municipal
tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay
interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.
The Fund may enter into reverse repurchase agreements with
respect to its portfolio investments subject to the Fund’s investment restrictions. The Fund may enter into “dollar roll” transactions.
The Fund may enter into derivative securities transactions that have leverage
embedded in them.
The Fund may leverage its portfolio by
entering into one or more credit facilities.
The Fund may also borrow money as a temporary measure for extraordinary or emergency purposes, including the payment of dividends and the
settlement of securities transactions which otherwise might require untimely dispositions of Fund securities. Certain short-term borrowings (such as for cash
management purposes) are not subject to the 1940 Act’s limitations on leverage if (i) repaid within 60 days, and (ii) not in excess of 5% of the Fund’s total
assets.
BlackRock MuniYield Pennsylvania
Quality Fund (MPA)
The Fund’s
investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal and Pennsylvania income taxes as is consistent
with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing, as a fundamental policy, at
least 80% of an aggregate of the Fund’s net assets (including proceeds from the issuance of any preferred shares) and the proceeds of any borrowings for
investment purposes, in a portfolio of municipal obligations issued by or on behalf of the State of Pennsylvania, its political subdivisions, agencies and
instrumentalities and by other qualifying issuers, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross
income for federal income tax purposes (except that the interest may be includable in taxable income for purposes of the federal alternative minimum tax) and
exempt from Pennsylvania income taxes (“Pennsylvania Municipal Bonds”). The Fund also may invest in municipal obligations issued by or on behalf of
states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that is
excludable from gross income for federal income tax purposes, in the opinion of bond counsel to the issuer, but is not excludable from gross income for
Pennsylvania income tax purposes (“Municipal Bonds”). Unless otherwise noted, the term “Municipal Bonds” also includes Pennsylvania
Municipal Bonds. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in
“investment grade” securities. The Fund’s investments in derivatives will be counted toward the Fund’s 80% policies to the extent that
they provide investment exposure to the securities included within each policy or to one or more market risk factors associated with such securities. In
general, the Fund does not intend for its investments to earn a large amount
Investment Objectives, Policies and
Risks 95
Investment Objectives, Policies and Risks (continued)
of
interest income that is (i) includable in gross income for federal income tax purposes or (ii) not exempt from Pennsylvania income taxes. From time to time, the Fund may
realize taxable capital gains.
The Fund’s investment objective and its policy of investing at least 80% of an aggregate of the Fund’s net assets (including proceeds from the issuance of any
preferred shares) and the proceeds of any borrowings for investment purposes, in Pennsylvania Municipal Bonds are fundamental policies that may not be changed
without the approval of a majority of the outstanding voting securities of the Fund (as defined in the Investment Company Act of 1940, as amended (the
“1940 Act”)). There can be no assurance that the Fund’s investment objective will be realized.
The Fund may invest in certain tax-exempt securities classified
as “private activity bonds” (or industrial development bonds, under pre-1986 law) (“PABs”) (in general, bonds that benefit
non-governmental entities) that may subject certain investors in the Fund to an alternative minimum tax. The percentage of the Fund’s total assets invested in PABs will
vary from time to time.
Under normal market
conditions, the Fund expects to invest primarily in a portfolio of long-term Municipal Bonds that are commonly referred to as “investment grade” securities, which are obligations rated at the time of purchase within the four highest-quality ratings as determined by either Moody’s Investors Service, Inc.
(“Moody’s”) (currently Aaa, Aa, A and Baa), S&P currently AAA, AA, A and BBB) or Fitch Ratings (“Fitch”) (currently AAA, AA,
A and BBB). In the case of short-term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG 1 through MIG 3 for Moody’s
and F1+ through F3 for Fitch. In the case of tax-exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1
through Prime-3 for Moody’s and F1+ through F3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for
S&P; Baa, MIG 3 and Prime-3 for Moody’s; and BBB and F3 for Fitch), while considered “investment grade,” may have certain speculative
characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality
of Municipal Bonds with respect to the foregoing requirements, BlackRock Advisors, LLC (the “Manager”) takes into account the nature of any letters
of credit or similar credit enhancement to which particular Municipal Bonds are entitled and the creditworthiness of the financial institution that provided
such credit enhancement. If unrated, such securities will possess creditworthiness comparable, in the opinion of the Manager, to other obligations in which the
Fund may invest. Insurance is expected to protect the Fund against losses caused by a bond issuer’s failure to make interest or principal payments.
However, insurance does not protect the Fund or its shareholders against losses caused by declines in a bond’s market value. If a bond’s insurer
fails to fulfill its obligations or loses its credit rating, the value of the bond could drop. If unrated, such securities will possess creditworthiness comparable, in the
opinion of the Manager, to other obligations in which the Fund may invest.
The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, which are securities rated Ba or below by Moody’s, BB or
below by S&P or Fitch or are considered by the Manager to be of comparable quality, at the time of purchase, subject to the Fund’s other investment
policies. Below investment grade quality is regarded as predominantly speculative with respect to the issuer’s capacity to pay interest and repay
principal. Such securities commonly are referred to as “high yield” or “junk” bonds.
All percentage and ratings limitations on securities in which the
Fund may invest apply at the time of making an investment and shall not be considered violated as a result of subsequent market movements or if an investment
rating is subsequently downgraded to a rating that would have precluded the Fund’s initial investment in such security. In the event that the Fund
disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such
downgrade.
The average maturity of the
Fund’s portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. The Fund’s portfolio at any given
time may include long-term, intermediate-term and short-term Municipal Bonds.
The net asset value of the shares of common stock of a closed-end investment company, such as the Fund, which invests primarily in fixed income securities, changes as the
general levels of interest rates fluctuate. When interest rates decline, the value of a fixed income portfolio can be expected to rise. Conversely, when
interest rates rise, the value of a fixed income portfolio can be expected to decline. Prices of longer term securities generally fluctuate more in. response
to interest rate changes than do shorter term securities. These changes in net asset value are likely to be greater in the case of a fund having a leveraged capital
structure, such as the Fund.
For temporary
periods or to provide liquidity, the Fund has the authority to invest as much as 20% of its total assets in tax-exempt and taxable money market obligations with
a maturity of one year or less (such short-term obligations being referred to herein as “Temporary Investments”). In addition, the Fund reserves
the right as a defensive measure to invest temporarily a greater portion of its assets in Temporary Investments, when, in the opinion of the Manager,
prevailing market or financial conditions warrant. Taxable money market obligations will yield taxable income. The Fund also may invest in variable rate demand
obligations (“VRDOs”) and VRDOs in the form of participation interests (“Participating VRDOs”) in variable rate tax-exempt obligations
held by a financial institution. The Fund’s hedging strategies are not fundamental policies and may be modified by the Board of Trustees of the Fund
without the approval of the Fund’s shareholders. The Fund is also authorized to invest in indexed and inverse floating rate obligations for hedging purposes and to seek
to enhance return.
The Fund may invest in
securities not issued by or on behalf of a state or territory or by an agency or instrumentality thereof, if the Fund receives an opinion of counsel to the
issuer that such securities pay interest that is excludable from gross income for federal income tax purposes and, if applicable, exempt from Pennsylvania
income taxes (“Non-Municipal Tax-Exempt Securities”). Non-Municipal Tax-Exempt Securities could include trust certificates, partnership interests
or other instruments evidencing interest in one or more long-term Municipal Bonds. Non-Municipal Tax-Exempt Securities also may include securities issued by
other investment companies that invest in Municipal Bonds, to the extent such investments are permitted by the Fund’s investment restrictions and
applicable law. Non-Municipal Tax-Exempt Securities are subject to the same risks associated with an investment in Municipal Bonds as well as many of the risks
associated with investments in derivatives. If the Internal Revenue Service were to issue any adverse ruling or take an adverse position with respect to the
taxation on these types of securities, there is a risk that the interest paid on such securities would be deemed taxable at the federal level.
The Fund ordinarily does not intend to realize significant
investment income not exempt from federal and Pennsylvania income taxes. From time to time, the Fund may realize taxable capital gains.
96
2026 BlackRock Annual Report to Shareholders
Investment Objectives, Policies and Risks (continued)
Federal tax legislation may limit the types and volume of bonds the interest on which qualifies
for a federal income tax-exemption. As a result, current legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for
investment by the Fund.
Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of variable rate demand preferred shares (“VRDP Shares”) and residual interest municipal
tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay
interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.
The Fund may enter into reverse repurchase agreements with respect to its portfolio
investments subject to the Fund’s investment restrictions.
The Fund may enter into derivative securities transactions that have leverage embedded in them.
The Fund may also borrow money as a temporary measure for
extraordinary or emergency purposes, including the payment of dividends and the settlement of securities transactions which otherwise might require untimely
dispositions of Fund securities. Certain short-term borrowings (such as for cash management purposes) are not subject to the 1940 Act’s limitations on leverage if (i)
repaid within 60 days, and (ii) not in excess of 5% of the Fund’s total assets.
BlackRock Virginia Municipal Bond Trust (BHV)
The Fund’s investment objective is to provide current income exempt from regular federal income taxes and Virginia personal income tax. As a fundamental policy, under
normal market conditions, the Fund will invest at least 80% of its Managed Assets in municipal bonds, the interest of which is exempt from regular federal
income tax and Virginia personal income tax; and derivatives that provide investment exposure to such securities or to one or more market risk factors
associated with such securities. For the purposes of the foregoing policy, “Managed Assets” are the Fund’s net assets plus the amount of
borrowings for investment purposes. The Fund cannot change its investment objective or the foregoing fundamental 80% policy without the approval of the holders
of a majority of the outstanding common shares and the outstanding preferred shares, including the variable demand rate preferred shares (“VRDP
Shares”), voting together as a single class, and of the holders of a majority of the outstanding preferred shares, including the VRDP Shares, voting as a
separate class. A majority of the outstanding means (1) 67% or more of the shares present at a meeting, if the holders of more than 50% of the outstanding shares are present
or represented by proxy, or (2) more than 50% of the outstanding shares, whichever is less.
Under normal market conditions, the Fund invests at least 80% of its Managed Assets in investment grade quality municipal bonds. Investment grade quality means that such
bonds are rated, at the time of investment, within the four highest quality ratings as determined by either Moody’s Investors Service, Inc.
(“Moody’s”) (currently Aaa, Aa, A and Baa), S&P Global Ratings (“S&P”) (currently AAA, AA, A and BBB) or Fitch Ratings,
Inc. (“Fitch”) (currently AAA, AA, A and BBB) or are unrated but judged to be of comparable quality by BlackRock Advisors, LLC (the
“Manager”). Municipal bonds rated Baa by Moody’s are investment grade, but Moody’s considers municipal bonds rated Baa to have
speculative characteristics. Changes in economic conditions or other circumstances are more likely to lead to a weakened capacity for issuers of municipal
bonds that are rated BBB or Baa (or that have equivalent ratings) to make principal and interest payments than is the case for issues of higher grade municipal
bonds. In the case of short term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG 1 through MIG 3 for Moody’s and
F1+ through F3 for Fitch. In the case of tax exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through
Prime-3 for Moody’s and F1+ through F3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa,
MIG 3 and Prime-3 for Moody’s and BBB and F3 for Fitch), while considered “investment grade,” may have certain speculative characteristics.
There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of municipal
bonds with respect to the foregoing requirements, the Manager takes into account the nature of any letters of credit or similar credit enhancement to which particular
municipal bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement.
The Fund may invest up to 20% of its Managed Assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are
unrated but judged to be of comparable quality by the Manager. Securities rated Ba/BB or below are commonly referred to as “high yield” or
“junk” bonds and are regarded as predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal in
accordance with the terms of the security and generally involve a greater volatility of price than securities in higher rating categories. Below investment
grade securities and comparable unrated securities involve substantial risk of loss, are considered speculative with respect to the issuer’s ability to
pay interest and any required redemption or principal payments and are susceptible to default or decline in market value due to adverse economic and business
developments.
All percentage and ratings
limitations on securities in which the Fund may invest apply at the time of making an investment and shall not be considered violated if an investment rating
is subsequently downgraded to a rating that would have precluded the Fund’s initial investment in such security. In determining whether to retain or sell a security that a rating agency has downgraded, the Manager may consider such factors as the Manager’s assessment of the credit quality of the issuer of the security, the price at
which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that the Fund disposes of a portfolio
security subsequent to its being downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such downgrade.
Subject to the Fund’s policy, under normal market
conditions, of investing at least 80% of its Managed Assets in municipal bonds, the interest from which is exempt from Virginia personal income tax, the Fund
may invest in securities that pay interest that is not exempt from Virginia personal income tax when, in the judgment of the Manager, the return to the
shareholders after payment of applicable Virginia personal income tax would be higher than the return available from comparable securities that pay interest that is, or make
other distributions that are, exempt from Virginia personal income tax.
The Fund may also invest in securities of other open- or closed-end investment companies that invest primarily in municipal bonds of the types in which the Fund may invest
directly and in tax-exempt preferred shares that pay dividends that are exempt from regular federal income tax. In addition, the Fund may purchase municipal
bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies which provide these credit
enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the
higher market price paid for insured obligations may reduce the Fund’s income. The insurance feature does not guarantee the market value of the insured
obligations or the net asset value of the common shares. The Fund may purchase insured bonds and may purchase insurance for bonds in its portfolio.
Investment Objectives, Policies and Risks 97
Investment Objectives, Policies and Risks (continued)
The
Fund may invest in certain tax exempt securities classified as “private activity bonds” (or industrial development bonds, under pre-1986 law) (“PABs”) (in general, bonds that benefit non-governmental entities) that may subject certain investors in the Fund to an alternative minimum tax. The percentage of the Fund’s total assets
invested in PABs will vary from time to time. The Fund has not established any limit on the percentage of its portfolio that may be invested in municipal bonds
subject to the federal alternative minimum tax provisions of federal tax law, and the Fund expects that a portion of the income it produces will be includable
in alternative minimum taxable income. VRDP Shares may not be a suitable investment for investors who are subject to the federal alternative minimum tax or who
would become subject to the federal alternative minimum tax as a result of purchasing VRDP Shares. The suitability of an investment in VRDP Shares will depend
upon a comparison of the after-tax yield likely to be provided from the Fund with that from comparable tax-exempt investments not subject to the federal
alternative minimum tax, and from comparable fully taxable investments, in light of each such investor’s tax position. Special considerations may apply to corporate
investors.
The average maturity of the Fund’s
portfolio securities will vary based upon the Manager’s assessment of economic and market conditions. The Fund’s portfolio at any given time may include both
long-term and intermediate-term municipal bonds.
The Fund’s stated expectation is that it may invest in municipal bonds that, in the Manager’s opinion, are underrated or undervalued. Underrated municipal bonds
are those whose ratings do not, in the opinion of the Manager, reflect their true higher creditworthiness. Undervalued municipal bonds are bonds that, in the
opinion of the Manager, are worth more than the value assigned to them in the marketplace. The Manager may at times believe that bonds associated with a
particular municipal market sector (for example, but not limited to electric utilities), or issued by a particular municipal issuer, are undervalued. The
Manager may purchase those bonds for the Fund’s portfolio because they represent a market sector or issuer that the Manager considers undervalued, even
if the value of those particular bonds appears to be consistent with the value of similar bonds. Municipal bonds of particular types (for example, but not
limited to hospital bonds, industrial revenue bonds or bonds issued by a particular municipal issuer) may be undervalued because there is a temporary excess of
supply in that market sector, or because of a general decline in the market price of municipal bonds of the market sector for reasons that do not apply to the
particular municipal bonds that are considered undervalued. The Fund’s investment in underrated or undervalued municipal bonds will be based on the
Manager’s belief that their yield is higher than that available on bonds bearing equivalent levels of interest rate risk, credit risk and other forms of risk, and that their prices will ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by the Fund will generally result in capital
gain distributions subject to federal capital gains taxation.
The Fund ordinarily does not intend to realize significant investment income not exempt from federal income taxes. From time to time, the
Fund may realize taxable capital gains.
Federal tax legislation may limit the types and volume of bonds the interest on which qualifies for a U.S. federal income tax exemption. As a result, current legislation
and legislation that may be enacted in the future may affect the availability of municipal bonds for investment by the Fund.
Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its
common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of VRDP
Shares and residual interest municipal tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB Residuals
in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income
tax.
The Fund may enter into reverse repurchase agreements with
respect to its portfolio investments subject to the Fund’s investment restrictions.
The Fund may enter into derivative securities transactions that have leverage embedded in them.
The Fund reserves the right to borrow funds subject to the Fund’s investment restrictions. The proceeds of borrowings may be used
for any valid purpose including, without limitation, liquidity, investments and repurchases of shares of the Fund.
The Fund may also borrow money as a temporary measure for
extraordinary or emergency purposes, including the payment of dividends and the settlement of securities transactions which otherwise might require untimely dispositions of
Fund securities.
Risk Factors
This section contains a discussion of the general risks of
investing in each Fund. The net asset value and market price of, and dividends paid on, the common shares will fluctuate with and be affected by, among other
things, the risks more fully described below. As with any fund, there can be no guarantee that the Fund will meet its investment objective or that the
Fund’s performance will be positive for any period of time. Each risk noted below is applicable to each Fund unless the specific Fund or Funds are noted in a
parenthetical. The order of the below risk factors does not indicate the significance of any particular risk factor.
Non-Diversification Risk (MUJ, MIY, MYN, MPA and BHV): The Fund is a
non-diversified fund. Because the Fund may invest in securities of a smaller number of issuers, it may be more exposed to the risks associated with and developments affecting
an individual issuer than a fund that invests more widely.
Investment and Market Discount Risk: An investment in the Fund’s common
shares is subject to investment risk, including the possible loss of the entire amount that you invest. As with any stock, the price of the Fund’s common
shares will fluctuate with market conditions and other factors. If shares are sold, the price received may be more or less than the original investment. Common
shares are designed for long-term investors and the Fund should not be treated as a trading vehicle. Shares of closed-end management investment companies
frequently trade at a discount from their net asset value. This risk is separate and distinct from the risk that the Fund’s net asset value could
decrease as a result of its investment activities. At any point in time an investment in the Fund’s common shares may be worth less than the original amount invested, even after taking into account distributions paid by the Fund. During periods in which the Fund may use leverage, the Fund’s investment, market discount and certain
other risks will be magnified.
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Investment Objectives, Policies and Risks (continued)
Debt Securities Risk: Debt securities, such as bonds, involve risks, such as
credit risk, interest rate risk, extension risk, and prepayment risk, each of which are described in further detail below:
•Credit Risk — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that
issuer. The degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.
•Interest Rate Risk — The market value of bonds and other fixed-income securities changes in response to interest rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise.
The Fund may be subject to a greater risk
of rising interest rates during a period of low interest rates. For example, if interest rates increase by 1%, assuming a current portfolio duration of ten
years, and all other factors being equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the
price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those securities with longer maturities. Fluctuations in the market price of the Fund’s investments will
not affect interest income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The Fund may lose
money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund management.
To the extent the Fund invests in debt securities that may be
prepaid at the option of the obligor (such as mortgage-backed securities), the sensitivity of such securities to changes in interest rates may increase (to the
detriment of the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset only periodically, changes in
prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the net asset value of the Fund to the extent that
it invests in floating rate debt securities.
These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith and
credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not its current market price. Just like
other fixed-income securities, government-guaranteed securities will fluctuate in value when interest rates change.
Changing interest rates may have unpredictable effects on
markets, may result in heightened market volatility, and could negatively impact the Fund’s performance. A general rise in interest rates has the
potential to cause investors to move out of fixed-income securities on a large scale, which may increase redemptions from funds that hold large amounts of
fixed-income securities. Heavy redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could hurt the Fund’s
performance.
•Extension
Risk — When interest rates rise, certain obligations will be paid off by the
obligor more slowly than anticipated, causing the value of these obligations to fall.
•Prepayment Risk — When interest rates fall, certain obligations will be paid off by the obligor more quickly
than originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.
Municipal Securities Risks: Municipal securities risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers of municipal securities, and the possibility of future legislative changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state,
and federal governments upon which the issuers may be relying for funding may also impact municipal securities. These risks include:
•General Obligation Bonds Risks — Timely payments depend on the issuer’s credit quality, ability to raise tax revenues and ability to maintain an adequate tax base.
•Revenue Bonds Risks — These payments depend on the money earned by the particular facility or class of facilities, or the amount of revenues derived from another source.
•Private Activity Bonds Risks — Municipalities and other public authorities issue private activity bonds to finance
development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and interest on the bond, and the issuer does not pledge its
full faith, credit and taxing power for repayment. The Fund’s investments may consist of private activity bonds that may subject certain shareholders to an alternative
minimum tax.
•Moral Obligation Bonds
Risks — Moral obligation bonds are generally issued by special purpose public
authorities of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral commitment, but not a legal obligation, of
the state or municipality.
•Municipal Notes Risks — Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the
anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.
•Municipal Lease Obligations Risks — In a municipal lease obligation, the issuer agrees to make payments when due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease obligation, the lease obligation is secured by the leased property.
•Tax-Exempt Status Risk — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds and payments under derivative securities. Neither the Fund nor its investment manager will independently review the bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its shareholders to substantial tax liabilities.
Investment Objectives, Policies and
Risks 99
Investment Objectives, Policies and Risks (continued)
State Specific Risk (MUJ, MIY, MPA, BNY and BHV): The Fund invests primarily in
municipal bonds issued by or on behalf of its designated state. As a result, the Fund is more exposed to risks affecting issuers of its designated
state’s municipal securities than is a fund that invests more widely. Fund management does not believe that the current economic conditions will adversely affect the
Fund’s ability to invest in high quality state municipal securities in its designated state.
Taxability Risk: The Fund intends to minimize the payment of taxable income to
shareholders by investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to the issuer that the
interest paid on those securities will be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined to
pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the treatment of dividends previously paid or to
be paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to increased U.S. federal income tax liabilities. Alternatively, the Fund might enter into an agreement with the IRS to pay an agreed upon amount in lieu of the IRS adjusting individual shareholders’
income tax liabilities. If the Fund agrees to enter into such an agreement, the Fund’s yield could be adversely affected. Further, shareholders at the
time the Fund enters into such an agreement that were not shareholders when the dividends in question were paid would bear some cost for a benefit they did not
receive. Federal tax legislation may limit the types and volume of bonds the interest on which qualifies for a federal income tax-exemption. As a result,
current legislation and legislation that may be enacted in the future may affect the availability of municipal securities for investment by the Fund. In
addition, future laws, regulations, rulings or court decisions may cause interest on municipal securities to be subject, directly or indirectly, to U.S.
federal income taxation or interest on state municipal securities to be subject to state or local income taxation, or the value of state municipal securities
to be subject to state or local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the tax-exempt status of such
securities. Any such change could also affect the market price of such securities, and thus the value of an investment in the Fund.
Insurance Risk: Insurance guarantees that
interest payments on a municipal security will be made on time and that the principal will be repaid when the security matures. However, insurance does not
protect against losses caused by declines in a municipal security’s value. The Fund cannot be certain that any insurance company will make the payments it guarantees.
If a municipal security’s insurer fails to fulfill its obligations or loses its credit rating, the value of the security could drop.
High Yield Bonds Risk: Although junk bonds
generally pay higher rates of interest than investment grade bonds, junk bonds are high risk investments that are considered speculative and may cause income and principal
losses for the Fund.
Indexed
and Inverse Securities Risk (MIY and MPA): Indexed and inverse securities provide a potential return based on a particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect to the value of the particular index. These securities are subject to leverage risk and
correlation risk. Certain indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other securities, and the
Fund’s investment in such instruments may decline significantly in value if interest rates or index levels move in a way Fund management does not
anticipate.
U.S. Government
Obligations Risk: Certain securities in which the Fund may invest, including securities issued by certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. Government or supported by the full faith and credit of the United States. In addition, circumstances could arise that
could prevent the timely payment of interest or principal on U.S. Government obligations, such as reaching the legislative “debt ceiling.” Such
non-payment could result in losses to the Fund and substantial negative consequences for the U.S. economy and the global financial system.
Variable Rate Demand Obligations Risks (MUJ, MIY
and MPA): Variable rate demand obligations are floating rate securities that combine an interest in a long term municipal bond with a right to demand payment before maturity from a bank or other financial institution. If the bank or financial institution is unable to pay, the Fund
may lose money.
Repurchase Agreements and Purchase and Sale Contracts Risk (MUJ): If the other
party to a repurchase agreement or purchase and sale contract defaults on its obligation under the agreement, the Fund may suffer delays and incur costs or
lose money in exercising its rights under the agreement. If the seller fails to repurchase the security in either situation and the market value of the security declines, the
Fund may lose money.
Leverage Risk: The Fund’s use of leverage may increase or decrease from time to time in its discretion and the Fund may, in the future, determine not to use leverage.
The use of leverage creates an opportunity for increased common
share net investment income dividends, but also creates risks for the holders of common shares. The Fund cannot assure you that the use of leverage will result in a higher
yield on the common shares. Any leveraging strategy the Fund employs may not be successful.
Leverage involves risks and special considerations for common shareholders, including:
•the likelihood of greater volatility of net asset value, market price and dividend rate of the common shares than a comparable portfolio without leverage;
•the risk that fluctuations in interest rates or dividend rates on any leverage that the Fund must pay will reduce the return to the common shareholders;
•the effect of leverage in a declining market, which is likely to cause a greater decline in the net asset value of the common shares than if the Fund were not leveraged,
which may result in a greater decline in the market price of the common shares;
•leverage may increase operating costs, which may reduce total return.
Any decline in the net asset value of the Fund’s investments will be borne entirely by the holders of common shares. Therefore, if
the market value of the Fund’s portfolio declines, leverage will result in a greater decrease in net asset value to the holders of common shares than if
the Fund were not leveraged. This greater net asset value decrease will also tend to cause a greater decline in the market price for the common shares.
Tender Option Bonds Risk: The Fund’s participation in tender option bond transactions may reduce the Fund’s returns and/or increase volatility. Investments in tender option bond transactions expose the Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve greater risk than an
investment in a municipal fixed rate security, including the risk of loss of principal. Distributions on TOB Residuals will bear an inverse relationship to
short-term municipal security interest rates. Distributions on TOB Residuals paid to the Fund will be reduced or, in the extreme, eliminated as short-term
municipal interest rates rise and will
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Investment Objectives, Policies and Risks (continued)
increase when short-term municipal interest rates fall. TOB Residuals generally will
underperform the market for fixed rate municipal securities in a rising interest rate environment. The Fund may invest special purpose trusts formed for the
purpose of holding municipal bonds contributed by one or more funds (“TOB Trusts”) on either a non-recourse or recourse basis. If the Fund invests in a TOB Trust
on a recourse basis, it could suffer losses in excess of the value of its TOB Residuals.
Reverse Repurchase Agreements Risk: Reverse repurchase agreements involve the
sale of securities held by the Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse repurchase
agreements involve the risk that the other party may fail to return the securities in a timely manner or at all. The Fund could lose money if it is unable to
recover the securities and the value of the collateral held by the Fund, including the value of the investments made with cash collateral, is less than the
value of the securities. These events could also trigger adverse tax consequences for the Fund. In addition, reverse repurchase agreements involve the risk that the interest
income earned in the investment of the proceeds will be less than the interest expense.
Dollar Rolls Risk (MIY): Dollar rolls involve the risk that the market value of
the securities that the Fund is committed to buy may decline below the price of the securities the Fund has sold. These transactions may involve leverage.
Illiquid Investments Risk: The Fund may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. The Fund may not be able to readily dispose of such investments at prices that approximate those at which
the Fund could dispose of such investments if they were more widely traded and, as a result of such illiquidity, the Fund may have to dispose of other
investments or engage in borrowing transactions if necessary to raise cash to meet its obligations. Limited liquidity can also affect the market price of
investments, thereby adversely affecting the Fund’s net asset value and ability to make dividend distributions. The financial markets in general, and
certain segments of the mortgage-related securities markets in particular, have in recent years experienced periods of extreme secondary market supply and
demand imbalance, resulting in a loss of liquidity during which market prices were suddenly and substantially below traditional measures of intrinsic value.
During such periods, some investments could be sold only at arbitrary prices and with substantial losses. Periods of such market dislocation may occur again at
any time. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in below
investment grade public debt securities.
Investment Companies and ETFs Risk (MUJ, MIY, BNY and BHV): Subject to the
limitations set forth in the Investment Company Act of 1940, as amended, and the rules thereunder, the Fund may acquire shares in other investment companies
and in exchange-traded funds (“ETFs”), some of which may be affiliated investment companies. The market value of the shares of other investment
companies and ETFs may differ from their net asset value. As an investor in investment companies and ETFs, the Fund would bear its ratable share of that
entity’s expenses, including its investment advisory and administration fees, while continuing to pay its own advisory and administration fees and other
expenses (to the extent not offset by the Manager through waivers). As a result, shareholders will be absorbing duplicate levels of fees with respect to investments in other
investment companies and ETFs (to the extent not offset by the Manager through waivers).
The securities of other investment companies and ETFs in which the Fund may invest may be leveraged. As a result, the Fund may be indirectly exposed to leverage through
an investment in such securities. An investment in securities of other investment companies and ETFs that use leverage may expose the Fund to higher volatility
in the market value of such securities and the possibility that the Fund’s long-term returns on such securities (and, indirectly, the long-term returns of shares of the
Fund) will be diminished.
As with other
investments, investments in other investment companies, including ETFs, are subject to market and selection risk. To the extent the Fund is held by an affiliated fund, the
ability of the Fund itself to hold other investment companies may be limited.
Derivatives Risk: The Fund’s use of derivatives may increase its costs, reduce the
Fund’s returns and/or increase volatility. Derivatives involve significant risks, including:
•Leverage Risk — The Fund’s use of derivatives can magnify the Fund’s gains and losses.
Relatively small market movements may result in large changes in the value of a derivatives position and can result in losses that greatly exceed the amount originally
invested.
•Market Risk — Some derivatives are more sensitive to interest rate changes and market price fluctuations
than other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated market movements, which losses are potentially
unlimited. Finally, the Manager may not be able to predict correctly the direction of securities prices, interest rates and other economic factors, which could cause the
Fund’s derivatives positions to lose value.
•Counterparty Risk — Derivatives are also subject to counterparty risk, which is the risk that the other party
in the transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated exposure to such a
counterparty.
•Illiquidity Risk — The possible lack of a liquid secondary market for derivatives and the resulting inability
of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value
accurately.
•Operational Risk — The use of derivatives includes the risk of potential operational issues, including
documentation issues, settlement issues, systems failures, inadequate controls and human error.
•Legal Risk — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or enforceability of a contract.
•Volatility and Correlation Risk — Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the fluctuations in their values may not correlate with the overall securities markets.
•Valuation Risk — Valuation for derivatives may not be readily available in the market. Valuation may be more difficult in times of market turmoil since many investors and market makers may be reluctant to purchase complex instruments or quote prices for them.
•Hedging Risk — Hedges are sometimes subject to imperfect matching between the derivative and the underlying security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging may result in certain adverse tax consequences.
Investment Objectives, Policies and Risks 101
Investment Objectives, Policies and Risks (continued)
•Tax Risk — Certain aspects of the tax treatment of derivative instruments, including swap agreements
and commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, regulations or other legally binding authority. Such
treatment may be less favorable than that given to a direct investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund
realizes from its investments.
Risk
of Investing in the United States: Certain changes in the U.S. economy, such as when the U.S. economy weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has exposure.
Market Risk and Selection Risk: Market risk is the risk that one or more markets
in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. An investor could lose
money over short periods due to fluctuation in the Fund’s net asset value in response to short-term market movements and over longer periods during
market downturns. Securities or other investments held by the Fund may underperform the markets, the relevant indices or benchmarks, or the securities selected
by other funds with similar investment objectives and investment strategies, or may otherwise fail to perform as intended. The value of a security or other
asset may decline due to changes in general market conditions, economic trends or events that are not specifically related to the issuer of the security or
other asset, or factors that affect a particular issuer or issuers, exchange, country, group of countries, region, market, industry, group of industries,
sector or asset class. The success of a Fund’s activities could be affected by interest rates, availability of credit, inflation rates, economic
uncertainty, changes in laws, tariffs and trade barriers, supply chain disruptions, economic sanctions, currency exchange controls, and local, regional or
global events such as war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health issues, recessions, or other
events.
Recent policy initiatives undertaken
by the U.S. government have the potential to impact international relations, trade agreements and the overall regulatory environment in ways that could create
uncertainty and instability in domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, actions taken by
the U.S. government in respect of international trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced foreign
investment, and instability in regions where the Fund invests.
Shareholder Activism: Shareholder activism involving closed-end funds has
recently been increasing. Shareholder activism can take many forms, including engaging in public campaigns to demand that the Fund consider significant
transactions such as a tender offer, merger or liquidation or to attempt to influence the Fund’s corporate governance and/or management, commencing proxy
contests to attempt to elect the activists’ representatives or others to the Fund’s Board of Directors/Trustees (the “Board”), or to
seek other actions such as a termination of the Fund’s investment advisory contract with its current investment manager or commencing litigation. If the Fund becomes the subject of shareholder activism, then management and the Board may be required to divert significant resources and attention to respond to the activist and the
Fund may incur substantial costs defending against such activism if management and the Board determine that the activist’s demands are not in the best
interest of the Fund. Further, the Fund’s share price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and
uncertainties of any shareholder activism.
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Automatic Dividend Reinvestment Plan
Pursuant to MUC, MUJ, MIY, MYN, MPA and BHV’s Dividend Reinvestment Plan (the “Reinvestment Plan”), Common Shareholders are automatically
enrolled to have all distributions of dividends and capital gains and other distributions reinvested by Computershare Trust Company, N.A. (the
“Reinvestment Plan Agent”) in the respective Fund’s Common Shares pursuant to the Reinvestment Plan. Shareholders who do not participate in the Reinvestment Plan will receive all distributions in cash paid by check and
mailed directly to the shareholders of record (or if the shares are held in street name or other nominee name, then to the nominee) by the Reinvestment Plan
Agent, which serves as agent for the shareholders in administering the Reinvestment Plan.
After MUC, MUJ, MIY, MYN, MPA and BHV declare a dividend or determine to make a capital gain or other distribution, the Reinvestment Plan
Agent will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but
authorized shares from the Funds (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market or on the Fund’s primary exchange (“open-market purchases”). If, on the dividend payment date, the net asset
value (“NAV”) per share is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to
as a “market premium”), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares acquired on behalf of the participants.
The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the
NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the dividend payment date, the dollar amount of the dividend
will be divided by 95% of the market price on the dividend payment date. If, on the dividend payment date, the NAV is greater than the market price per share
plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Reinvestment Plan Agent will invest the
dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend
amount in open-market purchases, or if the market discount shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any
un-invested portion in newly issued shares. Investments in newly issued shares made in this manner would be made pursuant to the same process described above and the date of
issue for such newly issued shares will substitute for the dividend payment date.
You may elect not to participate in the Reinvestment Plan and to receive all dividends in cash by contacting the Reinvestment Plan Agent, at the address set forth below.
Participation in the Reinvestment Plan is completely
voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend
record date. Additionally, the Reinvestment Plan Agent seeks to process notices received after the record date but prior to the payable date and such notices
often will become effective by the payable date. Where late notices are not processed by the applicable payable date, such termination or resumption will be effective with
respect to any subsequently declared dividend or other distribution.
The Reinvestment Plan Agent’s fees for the handling of the reinvestment of distributions will be paid by each Fund. However, each participant will pay a pro rata
share of brokerage commissions incurred with respect to the Reinvestment Plan Agent’s open-market purchases in connection with the reinvestment of all
distributions. The automatic reinvestment of all distributions will not relieve participants of any U.S. federal, state or local income tax that may be payable on such
dividends or distributions.
Each Fund
reserves the right to amend or terminate the Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan; however, each Fund
reserves the right to amend the Reinvestment Plan to include a service charge payable by the participants. Participants in MPA and BHV that request a sale of
shares are subject to a $2.50 sales fee and a $0.15 per share sold fee. Per share fees include any applicable brokerage commissions the Reinvestment Plan Agent
is required to pay. Participants in MUC, MUJ, MIY and MYN that request a sale of shares are subject to a $0.02 per share sold brokerage commission. All
correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at computershare.com/blackrock, or
in writing to Computershare, P.O. Box 43006 Providence, RI 02940-3006, Telephone: (800) 699-1236. Overnight correspondence should be directed to the
Reinvestment Plan Agent at Computershare, 150 Royall Street, Suite 101, Canton, MA 02021.
Automatic Dividend Reinvestment Plan 103
Director and Officer Information
| Independent Directors(a) | ||||
| Name Year of Birth(b) |
Position(s) Held
(Length of Service)(c) |
Principal Occupation(s) During Past 5 Years |
Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of Investment
Portfolios (“Portfolios”) Overseen |
Public Company and Other Investment Company Directorships Held During Past 5 Years |
| R. Glenn Hubbard 1958 |
Chair of the Board (Since
2022)
Director
(Since 2007) |
Dean, Columbia Business School from 2004 to 2019;
Faculty member, Columbia Business School since 1988. |
50 RICs consisting of 83 Portfolios |
ADP (data and information services) from 2004 to 2020; Metropolitan Life Insurance Company (insurance); TotalEnergies SE (multi-energy) |
| W. Carl Kester 1951 |
Vice Chair of the Board
(Since 2022)
Director
(Since 2007) |
Baker Foundation Professor and George Fisher Baker Jr.
Professor of Business Administration, Emeritus, Harvard
Business School since 2022; George Fisher Baker Jr.
Professor of Business Administration, Harvard Business
School from 2008 to 2022; Deputy Dean for Academic
Affairs from 2006 to 2010; Chairman of the Finance Unit,
from 2005 to 2006; Senior Associate Dean and Chairman
of the MBA Program from 1999 to 2005; Member of the
faculty of Harvard Business School since 1981. |
52 RICs consisting of 85 Portfolios |
None |
| Cynthia L. Egan 1955 |
Director
(Since 2016) |
Advisor, U.S. Department of the Treasury from 2014 to
2015; President, Retirement Plan Services, for T. Rowe
Price Group, Inc. from 2007 to 2012; executive positions
within Fidelity Investments from 1989 to 2007. |
52 RICs consisting of 85 Portfolios |
Unum (insurance); The Hanover Insurance Group (Board Chair); Huntsman Corporation (Lead Independent Director and non-Executive Vice Chair of the Board) (chemical products) |
| Lorenzo A. Flores 1964 |
Director
(Since 2021) |
Chief Financial Officer, Lattice Semiconductor Corporation
(LSCC) since 2025; Chief Financial Officer, Intel Foundry
from 2024 to 2025; Vice Chairman, Kioxia, Inc. from
2019 to 2024; Chief Financial Officer, Xilinx, Inc. from
2016 to 2019; Corporate Controller, Xilinx, Inc. from
2008 to 2016. |
50 RICs consisting of 83 Portfolios |
None |
| Stayce D. Harris 1959 |
Director
(Since 2021) |
Lieutenant General, Inspector General of the United States
Air Force from 2017 to 2019; Lieutenant General, Assistant
Vice Chief of Staff and Director, Air Staff, United States Air
Force from 2016 to 2017; Major General, Commander,
22nd Air Force, AFRC, Dobbins Air Reserve Base, Georgia
from 2014 to 2016; Pilot, United Airlines from 1990 to
2020. |
50 RICs consisting of 83 Portfolios |
KULR Technology Group, Inc. in 2021; The Boeing Company (airplane manufacturer) |
| J. Phillip Holloman 1955 |
Director
(Since 2021) |
Board Chairman, Vestis Corporation since 2023; Interim
Executive Chairman, President and Chief Executive
Officer of Vestis Corporation from April 2025 to July 2025;
President and Chief Operating Officer, Cintas Corporation
from 2008 to 2018. |
50 RICs consisting of 83 Portfolios |
Vestis Corporation (uniforms and facilities services) |
104
2026 BlackRock
Annual Report to Shareholders
Director and Officer Information (continued)
| Independent Directors(a) (continued) | ||||
| Name
Year of Birth(b) |
Position(s) Held
(Length of Service)(c) |
Principal Occupation(s) During Past 5 Years |
Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of Investment
Portfolios (“Portfolios”) Overseen |
Public Company and Other Investment Company
Directorships Held
During Past 5 Years |
| Arthur P. Steinmetz 1958 |
Director
(Since 2023) |
Trustee of Denison University since 2020; Consultant,
Posit PBC (enterprise data science) since 2020; Director,
ScotiaBank (U.S.) from 2020 to 2023; Chairman, Chief
Executive Officer and President of OppenheimerFunds,
Inc. from 2015, 2014 and 2013, respectively to 2019;
Trustee, President and Principal Executive Officer of
104 OppenheimerFunds funds from 2014 to 2019;
Portfolio manager of various OppenheimerFunds fixed
income mutual funds from 1986 to 2014. |
52 RICs consisting of 85 Portfolios |
None |
| Interested Directors(a)(d) | ||||
| Name Year of Birth(b) |
Position(s) Held
(Length of Service)(c) |
Principal Occupation(s) During Past 5 Years |
Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of Investment
Portfolios (“Portfolios”) Overseen |
Public Company and Other Investment Company Directorships Held During Past 5 Years |
| Robert Fairbairn 1965 |
Director
(Since 2018) |
Vice Chairman of BlackRock, Inc. since 2019; Member of
BlackRock’s Global Operating Committee; Co-Chair
of BlackRock’s Human Capital Committee; Senior
Managing Director of BlackRock, Inc. from 2010 to 2019;
oversaw BlackRock’s Strategic Partner Program and
Strategic Product Management Group from 2012 to 2019;
Member of the Board of Managers of BlackRock
Investments, LLC from 2011 to 2018; Global Head of
BlackRock’s Retail and iShares® businesses from 2012 to
2016. |
76 RICs consisting of 255 Portfolios |
None |
| John M. Perlowski 1964 |
Director
(Since 2015)
President and Chief
Executive Officer
(Since 2010) |
Senior Managing Director of BlackRock, Inc. since 2026;
Managing Director of BlackRock, Inc. from 2009 to 2025;
Member of BlackRock’s Global Executive Committee since
2025; Head of BlackRock Global Business Operations
Services since 2009; Advisory Director of Family Resource
Network (charitable foundation) since 2009. |
78 RICs consisting of 257 Portfolios |
None |
| (a) |
The address of each Director is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001. |
| (b) |
Each Independent Director holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as
provided by the Fund’s by-laws or charter or statute, or until
December 31 of the year in which he or she turns 75. Directors who are “interested persons,” as defined in the Investment Company Act serve until their successor
is duly elected and qualifies or until their earlier death, resignation, retirement or
removal as provided by the Fund’s by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Directors on a case-by-case basis, as appropriate. |
| (c) |
Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy
BlackRock fund boards were realigned and consolidated into three new fund
boards in 2007. Certain Independent Directors first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: R. Glenn Hubbard, 2004 and W. Carl Kester, 1995. Certain other Independent Directors became members of the boards of the closed-end funds in the Fixed Income Complex as
follows: Cynthia L. Egan, 2016. |
| (d) |
Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Fund based on their positions with BlackRock, Inc. and its
affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock
Multi-Asset Complex. |
Director and Officer Information 105
Director and Officer Information (continued)
| Officers Who Are Not Directors(a) | ||
| Name Year of Birth(b) |
Position(s) Held
(Length of Service) |
Principal Occupation(s) During Past 5 Years |
| Stephen Minar 1984 |
Vice President
(Since 2025) |
Managing Director of BlackRock, Inc. since 2023; Director of BlackRock, Inc. since 2018. |
| Trent Walker 1974 |
Chief Financial Officer
(Since 2021) |
Managing Director of BlackRock, Inc. since 2019. |
| Jay M. Fife 1970 |
Treasurer
(Since 2007) |
Managing Director of BlackRock, Inc. since 2007. |
| Charles Park 1967 |
Chief Compliance Officer
(Since 2026; and from 2014-
2023) |
Managing Director of BlackRock, Inc. (since 2006); Chief Compliance Officer of BlackRock Advisors, LLC (since 2014) and
BlackRock Fund Advisors (since 2006); Chief Compliance Officer of the iShares Complex (since 2026
and 2006-2023); Chief Compliance Officer of the BlackRock Multi-Asset Complex and
the BlackRock Fixed-Income Complex (since 2026 and 2014-2023). |
| Janey Ahn 1975 |
Secretary
(Since 2012) |
Managing Director of BlackRock, Inc. since 2018. |
| (a) |
The address of each Officer is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001. |
| (b) |
Officers of the Fund serve at the pleasure of the Board. |
| Effective March 9, 2026, Catherine A. Lynch resigned as a Director of the Funds. |
| Effective March 17, 2026, Walter O’Connor is no longer a portfolio manager of the Funds. |
| Effective July 31, 2026, Charles Park has succeeded Aaron Wasserman as Chief Compliance Officer. |
| Effective September 8, 2026, Frank Mahoney was appointed as a Director of the Funds. |
106
2026 BlackRock Annual Report to Shareholders
Additional Information
Proxy Results
The Annual Meeting of Shareholders was held on July 22, 2026 for
shareholders of record on May 26, 2026 to elect director nominees for each Fund. There were no broker non-votes with regard to any of the Funds.
Shareholders elected the Class I Directors as follows:
| |
Lorenzo A. Flores |
R. Glenn Hubbard |
John M. Perlowski |
W. Carl Kester(a)
| ||||
| Fund Name |
Votes For |
Votes Withheld |
Votes For |
Votes Withheld |
Votes For |
Votes Withheld |
Votes For |
Votes Withheld |
| MUC |
99,306,632 |
5,217,555 |
75,502,996 |
29,021,191 |
99,108,624 |
5,415,563 |
6,977 |
0 |
| MUJ |
43,926,509 |
2,091,536 |
38,075,768 |
7,942,277 |
44,059,529 |
1,958,516 |
3,921 |
250 |
| MIY |
23,295,646 |
730,965 |
18,869,048 |
5,157,563 |
23,387,412 |
639,199 |
2,319 |
0 |
| MYN |
75,595,584 |
2,300,665 |
59,953,866 |
17,942,383 |
75,620,754 |
2,275,495 |
4,768 |
282 |
| BHV |
1,222,910 |
37,141 |
1,223,217 |
36,834 |
1,223,217 |
36,834 |
116 |
0 |
| (a) |
Voted
on by holders of Preferred Shares only. |
For the Funds listed above, Directors whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are Robert Fairbairn,
Stayce D. Harris, J. Phillip Holloman, Arthur P. Steinmetz, and Cynthia L. Egan.
The Annual Meeting of Shareholders of MPA (the “Meeting”) was held on July 22, 2026 for shareholders of record on May 26,
2026 to consider and vote on the election of nine Trustees. There were no broker non-votes.
The vote results in the election of Trustees were as follows:
| |
Robert Fairbairn |
Lorenzo A. Flores |
Stayce D. Harris | ||||||
| Fund Name |
Votes For |
Votes Against |
Votes Abstain |
Votes For |
Votes Against |
Votes Abstain |
Votes For |
Votes Against |
Votes Abstain |
| MPA |
10,747,920 |
236,324 |
146,759 |
10,772,601 |
205,342 |
153,060 |
10,600,272 |
383,973 |
146,758 |
| |
J. Phillip Holloman |
R. Glenn Hubbard |
John M. Perlowski | ||||||
| Fund Name |
Votes For |
Votes Against |
Votes Abstain |
Votes For |
Votes Against |
Votes Abstain |
Votes For |
Votes Against |
Votes Abstain |
| MPA |
10,565,000 |
414,795 |
151,208 |
8,908,587 |
2,075,632 |
146,784 |
10,748,299 |
235,946 |
146,758 |
| |
Arthur P. Steinmetz |
Cynthia L. Egan(a)
|
W. Carl Kester(a)
| ||||||
| Fund Name |
Votes For |
Votes Against |
Votes Abstain |
Votes For |
Votes Against |
Votes Abstain |
Votes For |
Votes Against |
Votes Abstain |
| MPA |
10,583,343 |
391,505 |
156,155 |
826 |
0 |
0 |
826 |
0 |
0 |
| (a) |
Voted
on by holders of Preferred Shares only. |
Fund Certification
The Funds are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Funds filed with the SEC the certification of its chief executive officer and chief financial officer required by Section 302 of the Sarbanes-Oxley Act.
Environmental, Social and Governance (“ESG”)
Integration
Although the Funds do not seek to
implement a specific sustainability objective, strategy or process unless otherwise disclosed, Fund management will consider ESG factors as part of the
investment process for the Funds. Fund management views ESG integration as the practice of incorporating financially material ESG data or information into
investment processes with the objective of enhancing risk-adjusted returns. These ESG considerations will vary depending on the Funds’ particular investment strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock research across the ESG risks and opportunities regarding an issuer. The
ESG characteristics utilized in the Funds’ investment process are anticipated to evolve over time and one or more characteristics may not be relevant with respect to all issuers that are eligible for investment. Certain of these considerations may affect the
Funds’ exposure to certain companies or industries. While Fund management views ESG considerations as having the potential to contribute to the Funds’ long-term performance, there is no guarantee that such results will be achieved.
Dividend Policy
Each Fund’s dividend policy is to make regular monthly cash distributions to holders of its common shares (stated in terms of a fixed cents per common share dividend distribution rate). Each Fund intends to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In addition, in any monthly
period, in order to maintain its declared distribution amount, each Fund may pay out more or less than the entire amount of net investment income earned in any
particular month. In the event a Fund distributes more than its net investment income during any yearly period, such distributions may also come from sources
other than net income, including return of capital. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed as
accumulated earnings (loss) in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.
Additional Information 107
Additional Information (continued)
General Information
The Funds do not make available copies of their Statements of
Additional Information because the Funds’ shares are not continuously offered, which means that the Statement of Additional Information of each Fund has
not been updated after completion of the respective Fund’s offerings and the information contained in each Fund’s Statement of Additional Information may have
become outdated.
The following information is
a summary of certain changes since July 31, 2025. This information may not reflect all of the changes that have occurred since you purchased the relevant Fund.
Except if noted otherwise herein, there were no changes to
the Funds’ charters or by-laws that would delay or prevent a change of control of the Funds that were not approved by the shareholders. Except if noted
otherwise herein, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolios.
In accordance with Section 23(c) of the Investment Company Act of
1940, each Fund may from time to time purchase shares of its common stock in the open market or in private transactions.
Quarterly performance, shareholder reports, current net asset
value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow
investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.
Electronic Delivery
Shareholders can sign up for e-mail notifications of quarterly
statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on
BlackRock’s website.
To enroll in electronic
delivery:
Shareholders Who Hold Accounts with
Investment Advisers, Banks or Brokerages:
Please contact your
financial adviser. Please note that not all investment advisers, banks or brokerages may offer this service.
Householding
The Funds will mail only one copy of shareholder documents, annual and semi-annual reports, Rule 30e-3 notices and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder
documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these
documents to be combined with those for other members of your household, please call the Funds at (800) 882-0052.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedules of portfolio
holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are
available on the SEC’s website at sec.gov. Additionally, each Fund makes its
portfolio holdings for the first and third quarters of each fiscal year available at
blackrock.com/fundreports.
Availability of Proxy Voting Policies, Procedures and Voting
Records
The Board of Directors of the Funds
has delegated the voting of proxies for the Funds’ securities to BlackRock Advisors, LLC (the
“Adviser”) pursuant to the Closed-End Fund Proxy Voting Policy. The Adviser has adopted the BlackRock Active Investment Stewardship - Global
Engagement and Voting Guidelines (the “BAIS Guidelines”) with respect to certain funds, including the Funds. The BAIS Guidelines are available at www.blackrock.com.
A description of the policies and procedures that the Funds use
to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to securities held in the
Funds’ portfolios during the most recent 12-month period ended June 30 is available without charge, upon request (1) by calling (800) 882-0052; (2) on the BlackRock
website at blackrock.com; and (3) on the SEC’s website at sec.gov.
Availability of Fund Updates
BlackRock will update performance and certain other data for the
Funds on a monthly basis on its website in the “Closed-end Funds” section of blackrock.com as well as certain other material information as necessary from time to time. Investors and
others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to
BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s
website in this report.
108
2026 BlackRock
Annual Report to Shareholders
Additional Information (continued)
Fund
and Service Providers
Investment Adviser
BlackRock Advisors, LLC
Wilmington, DE 19809
Wilmington, DE 19809
Accounting Agent and Custodian
State Street Bank and Trust Company
Boston, MA 02114
Boston, MA 02114
Transfer Agent
Computershare Trust Company, N.A.
Canton, MA 02021
Canton, MA 02021
VRDP Liquidity Provider
Bank of America, N.A.(a)
New York, NY 10036
New York, NY 10036
Barclays Bank
PLC(b)
New York, New York 10019
New York, New York 10019
The Toronto-Dominion Bank(c)
New York, NY 10019
New York, NY 10019
(a)
For MUJ
(b) For MUC
(c) For MIY, MYN, MPA and BHV.
(b) For MUC
(c) For MIY, MYN, MPA and BHV.
VRDP Remarketing Agent
BofA Securities, Inc.(a)
New York, NY 10036
New York, NY 10036
Barclays Capital Inc.(b)
New York, New York 10019
New York, New York 10019
TD Securities (USA) LLC(c)
New York, NY 10019
New York, NY 10019
VRDP Tender and Paying Agent
The Bank of New York Mellon
New York, NY 10286
New York, NY 10286
Independent Registered Public
Accounting Firm
Deloitte & Touche LLP
Boston, MA 02110
Boston, MA 02110
Legal Counsel
Willkie Farr & Gallagher LLP
New York, NY 10019
New York, NY 10019
Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809
Wilmington, DE 19809
Additional Information 109
Glossary of Terms Used in this Report
| Portfolio Abbreviation | |
| AGM |
Assured Guaranty Municipal Corp.
|
| AGM-CR |
AGM Insured Custodial Receipt |
| AMBAC |
AMBAC Assurance Corp. |
| AMT |
Alternative Minimum Tax |
| ARB |
Airport Revenue Bonds |
| BAM |
Build America Mutual Assurance Co.
|
| BAM-TCRS |
Build America Mutual Assurance Co. - Transferable
Custodial Receipts |
| BHAC-CR |
Berkshire Hathaway Assurance Corp. - Custodian
Receipt |
| CAB |
Capital Appreciation Bonds |
| COP |
Certificates of Participation |
| FHLMC |
Federal Home Loan Mortgage Corp.
|
| FNMA |
Federal National Mortgage
Association |
| GNMA |
Government National Mortgage
Association |
| GO |
General Obligation Bonds |
| GOL |
General Obligation Ltd. |
| GTD |
Guaranteed |
| HUD SECT 8 |
U.S. Department of Housing and Urban Development
Section 8 |
| M/F |
Multi-Family |
| MT |
Mandatory Tender |
| NPFGC |
National Public Finance Guarantee
Corp. |
| Q-SBLF |
Qualified School Bond Loan Fund
|
| RB |
Revenue Bonds |
| S/F |
Single-Family |
| SAB |
Special Assessment Bonds |
| SAW |
State Aid Withholding |
| SONYMA |
State of New York Mortgage Agency
|
| ST |
Special Tax |
| TA |
Tax Allocation |
| VRDN |
Variable Rate Demand Note |
110
2026 BlackRock
Annual Report to Shareholders
THIS PAGE
INTENTIONALLY LEFT BLANK.
Want to know
more?
blackrock.com |
800-882-0052
This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not
be considered a representation of future performance. The Funds have leveraged their Common Shares, which creates
risks for Common Shareholders, including the likelihood of greater volatility of NAV and market price of the Common
Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.
MY6-07/26-AR
(b) Not Applicable
Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-882-0052, Option 4.
Item 3 – Audit Committee Financial Expert – The registrant’s board of trustees (the “board of trustees”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:
Lorenzo A. Flores
Arthur P. Steinmetz
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of trustees in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of trustees.
Item 4 – Principal Accountant Fees and Services
The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:
| (a) Audit Fees | (b) Audit-Related Fees1 |
(c) Tax Fees2 | (d) All Other Fees | |||||||||||||
|
Entity Name |
Current Fiscal Year End |
Previous Fiscal Year End |
Current Fiscal Year End |
Previous Fiscal Year End |
Current Fiscal Year End |
Previous Fiscal Year End |
Current Fiscal Year End |
Previous Fiscal Year End | ||||||||
| BlackRock MuniYield Pennsylvania Quality Fund | $32,857 | $32,698 | $5,800 | $0 | $14,500 | $14,500 | $416 | $388 | ||||||||
The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):
| Current Fiscal Year End | Previous Fiscal Year End | |||
| (b) Audit-Related Fees1 |
$0 | $0 | ||
| (c) Tax Fees2 |
$0 | $0 | ||
| (d) All Other Fees3 |
$2,277,000 | $2,149,000 |
1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.
2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.
3 Non-audit fees of $2,277,000 and $2,149,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored or advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the Securities and Exchange Commission’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:
| Entity Name |
Current Fiscal Year End | Previous Fiscal Year End | ||
| BlackRock MuniYield Pennsylvania Quality Fund |
$20,716 | $14,888 |
Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored or advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:
|
Current Fiscal Year End |
Previous Fiscal Year End | |
|
$2,277,000 |
$2,149,000 |
These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
(i) Not Applicable
(j) Not Applicable
Item 5 – Audit Committee of Listed Registrant
(a) The following individuals are members of the registrant’s separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):
Lorenzo A. Flores
J. Phillip Holloman
Arthur P. Steinmetz
(b) Not Applicable
Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 – Financial Statements and Financial Highlights for Open-End Management Investment Companies – Not Applicable
Item 8 – Changes in and Disagreements with Accountants for Open-End Management Investment Companies – Not Applicable
Item 9 – Proxy Disclosures for Open-End Management Investment Companies – Not Applicable
Item 10 – Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies – Not Applicable
Item 11 – Statement Regarding Basis for Approval of Investment Advisory Contract – The registrant’s statement regarding the basis for approval of the investment advisory contract is included as part of the Report to Stockholders filed under Item 1(a) of this Form.
Item 12 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of trustees has delegated the voting of proxies for the Fund’s portfolio securities to the Investment Adviser pursuant to the Closed-End Fund Proxy Voting Policy. The Investment Adviser has adopted the BlackRock Active Investment Stewardship - Global Engagement and Voting Guidelines (the “BAIS Guidelines”) with respect to certain funds, including the Fund. Copies of the Closed-End Fund Proxy Voting Policy and the BAIS Guidelines are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge, upon request, by calling (800) 882-0052, (ii) at www.blackrock.com and (iii) on the SEC’s website at http://www.sec.gov.
Item 13 – Portfolio Managers of Closed-End Management Investment Companies
(a)(1) As of the date of filing this Report:
The registrant is managed by a team of investment professionals comprised of Phillip Soccio, CFA, Director at BlackRock, Christian Romaglino, CFA, Director at BlackRock, Kevin Maloney, CFA, Managing Director at BlackRock, Michael Kalinoski, CFA, Director at BlackRock and Kristi Manidis, Director at BlackRock. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and/or selection of its investments. Messrs. Soccio and Romaglino have been members of the registrant’s portfolio management team since 2008 and 2022, respectively. Messrs. Maloney and Kalinoski and Ms. Manidis have been members of the registrant’s portfolio management team since 2023.
|
Portfolio Manager |
Biography | |
|
Phillip Soccio, CFA |
Director of BlackRock since 2009. | |
|
Christian Romaglino, CFA |
Director of BlackRock since 2017. | |
| Kevin Maloney, CFA |
Managing Director of BlackRock since 2025; Director of BlackRock from 2021 to 2024; Vice President of BlackRock from 2018 to 2020. | |
| Michael Kalinoski, CFA |
Director of BlackRock since 2006. | |
| Kristi Manidis |
Director of BlackRock, Inc. since 2016. |
(a)(2) As of July 31, 2026:
| (ii) Number of Other Accounts Managed and Assets by Account Type |
(iii) Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based | |||||||||||
| (i) Name of Portfolio Manager |
Other Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
Other Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts | ||||||
| Phillip Soccio, CFA |
21 | 0 | 0 | 0 | 0 | 0 | ||||||
| $26.37 Billion | $0 | $0 | $0 | $0 | $0 | |||||||
| Christian Romaglino, CFA |
23 | 0 | 0 | 0 | 0 | 0 | ||||||
| $22.57 Billion | $0 | $0 | $0 | $0 | $0 | |||||||
| Kevin Maloney, CFA |
29 | 0 | 0 | 0 | 0 | 0 | ||||||
| $41.95 Billion | $0 | $0 | $0 | $0 | $0 | |||||||
| Michael Kalinoski, CFA |
20 | 0 | 0 | 0 | 0 | 0 | ||||||
| $31.05 Billion | $0 | $0 | $0 | $0 | $0 | |||||||
| Kristi Manidis |
21 | 0 | 2 | 0 | 0 | 0 | ||||||
| $25.25 Billion | $0 | $399.9 Million | $0 | $0 | $0 | |||||||
(iv) Portfolio Manager Potential Material Conflicts of Interest
BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, Inc., its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, Inc., or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock, Inc.’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock, Inc. or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. It should also be noted that a portfolio manager may be managing hedge funds and/or long only accounts, or may be part of a team managing hedge funds and/or long only accounts, subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. Currently, the portfolio managers of this fund are not entitled to receive a portion of incentive fees of other accounts.
As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock, Inc. has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.
(a)(3) As of July 31, 2026:
Portfolio Manager Compensation Overview
The discussion below describes the portfolio managers’ compensation as of July 31, 2026.
BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.
Base Compensation. Generally, portfolio managers receive base compensation based on their position with the firm.
Discretionary Incentive Compensation. Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the funds or other accounts managed by the portfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are: A combination of market-based indices (e.g., Bloomberg Municipal Bond Index), certain customized indices and certain fund industry peer groups.
Distribution of Discretionary Incentive Compensation. Discretionary incentive compensation is distributed to portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards that notionally track the return of certain BlackRock investment products.
Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio managers of this Fund have deferred BlackRock, Inc. stock awards.
For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage, which provides direct alignment of portfolio manager discretionary incentive compensation with investment product results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only portfolio managers who manage specified products and whose total compensation is above a specified threshold are eligible to participate in the deferred cash award program.
Other Compensation Benefits. In addition to base salary and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:
Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock, Inc. employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit ($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock, Inc. contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to participate in these plans.
(a)(4) Beneficial Ownership of Securities – As of July 31, 2026:
|
Portfolio Manager |
Dollar Range of Equity Securities of the Fund Beneficially Owned | |
| Phillip Soccio, CFA |
None | |
| Christian Romaglino, CFA |
None |
| Kevin Maloney, CFA |
None | |
| Michael Kalinoski, CFA |
None | |
| Kristi Manidis |
None |
(b) Not Applicable
Item 14 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.
Item 15 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 16 – Controls and Procedures
(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 17 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable
Item 18 – Recovery of Erroneously Awarded Compensation – Not Applicable
Item 19 – Exhibits attached hereto
(a)(1) Code of Ethics – See Item 2
(a)(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the
Exchange
Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant’s securities are listed – Not
Applicable
(a)(3) Section 302 Certifications are attached
(a)(4) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable
(a)(5) Change in registrant’s independent public accountant – Not Applicable
(b) Section 906 Certifications are attached
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock MuniYield Pennsylvania Quality Fund
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Pennsylvania Quality Fund
Date: September 22, 2026
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Pennsylvania Quality Fund
Date: September 22, 2026
By: /s/ Trent Walker
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Pennsylvania Quality Fund
Date: September 22, 2026